ISSUE

PAPER BIOENERGY ISSUE PAPER SERIES NO. 6 © Esben Hardt, Ace & Ace Productions, 2012

Energy empowers people. It enables development and growth. Yet, 20% of the global population still does not have access to electricity; and 40% currently rely on traditional biomass in the form of wood, charcoal or dung for cooking and heating. On a household level, the transition from traditional biomass for energy to modern bioenergy, amongst other renewable energy options, can dramatically improve economic and social development. The UN Secretary General Ban Ki-moon has launched a new initiative called Sustainable Energy for All, urging all sectors of society to work together to ensure universal access to modern energy, alongside two other objectives: doubling the rate of improvement in energy efficiency and doubling the share of renewable energy in the global energy mix. This paper will examine modern bioenergy as one instrument to achieve these complementary goals.

Modern Bioenergy: One of the Game

Changers for Achieving Universal Access to

Modern Energy Services

Universal Access to Modern Energy levels – those communities that continue to use Services by 2030 traditional biomass for cooking and those lacking access to electricity. Access to modern energy services is a facilitator for economic development and human well-being. A As illustrated in the following chart, the use of lack of energy access, therefore, is an inhibitor to traditional biomass as a primary cooking fuel is the growth. In developing regions where energy poverty highest in the Asian continent and Sub-Saharan occurs, it has been acknowledged that the problem . In the latter, this figure amounts to roughly “has to be overcome if the Millennium Development 80% of the population reliant on traditional biomass Goals are to be achieved” (IEA, 2010). Populations as a primary energy source. experiencing energy poverty can be defined on two A Snapshot of the Current Situation

Traditional Biomass Use Currently, 2.7 billion people worldwide depend on traditional biomass to meet their energy needs (specifically in cooking). 82% of these people live in rural communities (IEA, 2010). This traditional biomass varies in regards to the type of fuel used, and the end-user technology. A summary of these are provided in the table below.

Sustainability Challenges of Traditional Biomass Use In off-grid rural and peri-urban areas, the Population relying on traditional biomass as relationship between poverty and resource pressures primary cooking fuel is often magnified, as many communities are forced (Adopted from the International Energy Agency, 2011) to obtain fuelwood and charcoal from often times dwindling resources. Although there are data gaps Responding to this energy poverty challenge, the concerning the dynamics between traditional United Nations Secretary-General Ban Ki-moon biomass use and forest pressures, it is recognized launched in January a pioneering new initiative, that present unsustainable practices contribute to “Sustainable Energy for All,” to mobilize urgent local deforestation and forest resource exploitation. global action. The initiative is the framework that Additionally, both the act of deforestation and brings all sectors of society to the table - business, combustion of biomass results in an increase of governments, investors, community groups and carbon in the atmosphere. academia - to achieve by 2030, the following three inter-linked objectives (1) ensure universal access to The severity of global emissions from utilizing modern energy services, (2) double the rate of inefficient cookstoves alone is immense. For improvement in energy efficiency, (3) double the instance, research shows that global emissions from share of renewable energy in the global energy mix outdated cookstoves represent a quarter of all black carbon emissions, a major short-lived climate forcer 2012 has been declared by the UN General Assembly (SLCF) (Bond, 2004). Black carbon is seen as a as the International Year of Sustainable Energy for priority to address in climate mitigation approaches, All, to raise awareness of the challenge and create a as the substance can further accelerate atmospheric momentum for action, initiating and catalyzing the heating. Once deposited back into ice caps and much needed change. glaciers, it can increase melting as less sunlight is reflected into space.

Biomass Fuel Type Advantages Disadvantages

 Readily available in rural areas Low energy density  Labour costs of fuelwood gathering   Requires no cash purchases Low quality energy services  Deforestation and forest Fuelwood  Some social networking benefits from degradation risks  Health and safety impacts gathering of fuelwood  Tradable commodity Higher cost than fuelwood  Risk of respiratory impacts  Charcoal  Higher energy density than fuelwood Degradation of forested areas  High black carbon  Can be bought in varying quantities footprint  Difficult to regulate production  Readily available in agricultural areas Low energy density  Low quality energy services  Labour  Requires no cash purchases costs of residue gathering  Risk of respiratory impacts Crop residues when burned  Trade-off between utilizing residues for agriculture purposes  Readily available where livestock are Low energy density  Low quality energy services  Dung plentiful Cultural barriers  Requires no cash purchases Bioenergy fuels including their advantages and disadvantages Adapted from the UNEP Bioenergy Decision Support Tool, 2011

Not only is this a harmful practice for the integrity of natural ecosystems, but it is also a great health concern. Particulates and acrid smoke is inhaled The Sub-Saharan charcoal from the open fires on which cookstoves are used. Globally, respiratory diseases from these practices production industry is worth can cause 1.6 million deaths a year (GNESD, 2011). roughly $10 billion USD.

urban rates of electrification in the region, which is roughly 60% (IEA, 2009).

From North America to Africa, one can observe, as well, a stark divide between electricity consumption rates. The graphic below illustrates the electricity gap between New York State and Sub-Saharan Africa (excluding South Africa). With a population of 791 million inhabitants, Sub-Saharan Africa only consumes 52 kWh per capita, compared to the 2050 kWh per capita consumed in New York State.

Figure: Premature Annual Death from Cookstoves and other Selected Diseases (Adopted from the International Energy Agency, World Energy Outlook, 2011.)

These include chronic health effects such as obstructive pulmonary disease, heart disease, lung cancer, and low-weight births (Global Alliance for Clean Cookstoves, 2011). In many household structures, women and girls carry the responsibility of cooking as well as finding and colleting fuelwood. Forcibly, the aforementioned health impacts fall disproportionately on them. Electricity consumption in New York and Sub- Saharan Africa (IEA, 2010) Access to Electricity: Addressing Inequities In terms of electrification rates, there are a predicted A Shift in Technology 1.4 billion people who lack access to electricity at the household level (IEA, 2010). Basic services which are An energy transition is needed if these problems are considered standard for developed countries, but are to be resolved. For cooking, modern bioenergy not as pervasive in many parts of developing regions technologies offer some solutions in the continuum are: heating, mechanical power, transport, of the energy ladder. The replacement and delivery telecommunications and lighting just to name a few. of these technologies however, is directly related to household income levels as illustrated in the Globally, there are inequities in the consumption of following figure. As represented, improved/ electricity across and within country borders. Rural advanced cookstoves are typically the clean rates of electricity are considerably lower than those technology solution for low and middle income found in urban and peri-urban regions. For households for energy needs related to cooking. In example, in Sub-Saharan Africa, rural electrification high income households, this transition usually rates hover around 14%. This can be compared to moves from improved stoves to biogas systems. Beyond direct benefits, there are also many spillover benefits of modern bioenergy.

diesel engines in multifunction platforms (MFP) that can then be used to deliver services such as de- husking, grinding, irrigation, battery recharging, etc. Furthermore, biomass, particularly waste and residues can be transformed into electricity, which is either fed into a national grid, in form of mini-grids on village level or between villages. In Nigeria, for example, biomass mini-grid projects are being implemented using waste resides from rice husk and saw dust; two materials that would have otherwise been dumped or burnt. In Brazil, sugarcane mills now use bagasse to generate their own production energy and excess is fed into the grid to serve neighboring communities.

Quality of energy services and household income (World Energy Outlook, IEA, 2011) Technology End-Use Advanced cookstoves/ sustainable Cooking Advanced cookstoves refer to stoves that are woodfuels incrementally more resource efficient either (1) Biomass electrification (biopower) Electricity using less fuelwood than traditional ones or (2) utilize sustainable forms of fuel other than Bagasse electricity Electricity traditional biomass. For example, some advanced Biogas Cooking cookstoves can reduce the amount of fuelwood by 30%, thus reducing the need to consume higher Multifunction Platform (MFP) Electricity amounts. In other cases, the traditional fuelwood is Biodiesel or SVO generator Electricity replaced by sustainable materials such as green charcoal, straight vegetable oil (SVO), bioethanol, Modern bioenergy technologies to support the etc. objectives of the Sustainable Energy for All Initiative In either case, a transition from traditional stoves to more advanced technologies, such as advanced Current barriers stoves and biogas, can mean that direct risks to Advancing these transitions and addressing the health, biodiversity and climate change are reduced. inequities in energy access should be a development In rare cases, interventions aimed at replacing stoves priority for the international community. However, in conflict areas have even been known to prevent transitioning from traditional biomass to sustainable violence towards women. Beyond direct benefits, bioenergy sources is not without its challenges. there are also many spillover benefits. One that has There are many barriers to adoption that must be been observed is that households are able to receive overcome if progress is to be made including those financial savings from substituting for more efficient related to access/ market (including supply chain) fuels or technologies. For example, a family who and technology barriers, as well as socio-economic purchases a more efficient cookstove would be able barriers. to first, pay off the cost of the cookstove, and then retain the additional savings from the charcoal they Lack of access to financing for both the end-user would have purchased, or the opportunity cost of and local enterprises are critical market barriers that the time they would have spent collecting fuelwood. need to be overcome. At the bottom of the pyramid, where these markets are critical, customers cannot Modern bioenergy technologies extend beyond those afford the high initial costs of many of these used for cooking. The following chart illustrates the technologies; and, enterprises have difficulty in various modern bioenergy technologies and end-uses structuring payback periods on credit to reach this that are available to support the objectives of the consumer base. Sustainable Energy for All initiative. For example, SVO and biodiesel can be used to power © Asden, 2011 Creating the conditions

A strong enabling environment is needed for these technologies to be adopted. According to the International Energy Agency, a cumulative investment of USD 56 billion is necessary for universal access to clean cooking facilities. In this projection, around 51% is invested in biogas systems, 23% in advanced cookstoves and 26% in LGP stoves (IEA, 2010). These transitions are shaped at both on On the policy level, policies need to be the ground, where bottom up approaches are developed comprehensively and incorporate necessary; and at the enabling environment level, linkages across sectoral priorities. where policy interventions induce change.

In terms of supply chain issues, physical market In terms of market access, creating conditions access is another bottleneck in the widespread that allow end-users to purchase these new distribution of cleaner technologies. This is technologies is paramount. Financial institutions particularly true in rural areas where poor can support this shift by offering financial products infrastructure limits greater market access for to end-users who would traditionally not be able to communities. afford these technologies. These include products such as credit lines and loans to consumers and On the technology side, mechanical repairs for groups. Working with SMEs and suppliers is certain technologies may be needed. This should additionally important as is developing a sustainable also be considered when analyzing the feasibility of supply chain. Innovative finance mechanisms for these replacement technologies as households need SMEs can also contribute to disseminating cleaner guarantees for the longevity of their products and technologies that substitute traditional biomass use enterprises are often not able to provide these (see AREED box). product guarantees. In some applications, cookstove and biogas technologies are not yet at the The UNEP African Rural Energy Enterprise deployment stage. Thus, research and development Development (AREED) programme was are still needed to improve the efficiency and founded on the belief that impoverished durability of certain technologies. communities can transform their lives when they are empowered by clean energy services delivered Any strategy aimed at increasing energy access by small and medium enterprises. The AREED should be undertaken with an acute awareness model provides early-stage and later-stage of the socio-cultural dynamics of the local financing to rural clean energy in Ghana, , communities they are trying to impact. Senegal, and . Toyola Energy, an Technologies have to be culturally and socially AREED financed-enterprise that fabricates and appropriate. Cookstoves, for example, are a staple sells efficient cooking stoves illustrates the main part of a household; and different varieties of components and processes of AREED. Toyola cookstoves differ across cultures, food being Energy’s entrepreneurs wanted to start-up a small prepared and techniques used. Transitioning from business; however, they were unable to obtain traditional stoves to more advanced/ efficient finance from any of the local banks. Upon learning cookstoves undoubtedly requires then that they be about AREED in February 2006, they applied for appropriate for the consumers’ needs. For example, and received business advisory services from KITE in some countries in Latin America it is important to and E+Co, resulting in a business plan that was have flat-top cookstoves for staple foods such as approved for total financing of US$270,000. From tortillas. This differs in comparison to South Asia, its humble beginnings, Toyola Energy has grown where rice is the staple food. In this region it may dramatically, increasing sales from 3000 to over be more important to design rice cookstoves made 35,000 units per annum within 4 years. By 2010 the particularly for that consumer base (Global Alliance company had supplied over 50,000 households in 6 for Clean Cookstoves, 2011). regions of Ghana with improved energy-efficient stoves and expanded their market to neighboring countries. (UNEP, 2011)

Technological barriers, as was mentioned Moving Towards Universal Access to before, are also important to overcome in order Modern Energy to create the conditions for the wide dissemination of modern bioenergy technologies. Biogas digesters, The shift from traditional to modern bioenergy will for example, can experience technological be a transition that requires the commitment and challenges because the supply and mix of fuel support of the entire international community. (dung) has to remain constant in order to retain a Modern bioenergy technologies such as advanced / consistent methane stream. As well, air cracks in efficient cookstoves, biomass and bagasse the sides of the pipes or the walls of the digester electrification, and biogas systems can supply the have been observed. Because consumer trust is core most vulnerable of communities at the bottom of to the success of the market, these challenges should the pyramid, with energy services that promote a be overcome. In the case of biogas digesters, these better quality of life. small technological challenges can be overcome with appropriate training on the manufacturer’s side References and capacity building at the household level.  IEA, 2011. Energy Poverty: How to make modern energy access universal? Special early excerpt of the World Consumer awareness is also one of the key Energy Outlook 2010 for the UN General Assembly on the components to an effective clean energy strategy. Millennium Development Goals. Evidence shows that innovative marketing  Bond, T., D. Streets, K. Yarber, S. Nelson, J. Woo, and Z. techniques such as demonstration sites and Klimont. (2004). “A Technology-based Global Inventory of technologies can be effective in some cultural Black and Organic Carbon Emissions from Combustion” contexts. Additionally, market intelligence and Journal of Geophysical Research. analyses can be improved for the sector and can  Global Network on Energy for Sustainable Development, contribute a wealth of knowledge into the profile of 2011. Bioenergy: The potential for rural development and target consumers and their needs. poverty alleviation. UNEP, UN-Energy.

 Global Alliance for Clean Cookstoves, 2011. Igniting On the policy level, policies need to be Change: A strategy for universal adoption of clean developed comprehensively and incorporate cookstoves and fuels. linkages across sectoral priorities. For example, policies focused on high import tariffs for clean  IEA, 2009. Access to Electricity. Assessed on February 16 energy materials contradict national development from: http://www.iea.org/weo/electricity.asp

strategies for increasing clean energy access. The **This paper focuses on off-grid rural energy transitions and development of feed in tariffs (FiT) schemes can also technologies that are capable of commercial deployment. It support an enabling environment for the uptake of should be recognized that in many countries there is a trade-off modern bioenergy technologies. If energy access between prioritizing and investing in grid expansion or promoting decentralized approaches. This paper does not present that issue, objectives are to be achieved, inter-ministerial however, it is a dynamic that needs to be taken into account when dialogue across development, energy, economic, prioritizing national strategies for energy poverty and rural health, and environment ministries is encouraged. energy access.

AVENUES FOR ACHIEVING UNIVERSAL ACCESS TO MODERN ENERGY SERVICES

LOOKING

AHEAD  Increase commitments for research and development of modern bioenergy, within a portfolio of clean energy technologies, that target populations that are living in energy poverty  Establishing innovative financial products for small-scale modern bioenergy provision  Supporting regulatory frameworks to ensure the harmonization of energy access policies at a national level  Develop local marketing strategies and awareness campaigns alongside local renewable energy enterprises

 Share learned lessons and best practices for replication on regional and global scales