68277 Household Energy Access Household Energy Access for Cooking & Heating Lessons Learned and the Way Forward for Cooking & Heating By Koffi Ekouevi & Voravate Tuntivate Lessons Learned and the Way Forward By Koffi Ekouevi & Voravate Tuntivate Africa Renewable Energy Africa Renewable Energy Access Program (AFREA) Access Program (AFREA) EXECUTIVE SUMMARY H alf of humanity-about 3 billion people-are still relying on solid fuels for cooking and heating. Of that, about 2.5 billion people depend on traditional biomass fuels (wood, charcoal, agricultural waste, and animal dung), while about 400 million people use coal as their primary cooking and heating fuel (UNDP and WHO 2009). The majority of the population relying on solid fuels lives in Sub-Saharan Africa and in South Asia. In some countries in Central America and in East Asia and the Pacific, the use of solid fuels is also significant. The inefficient and unsustainable production and use of these fuels result in a significant public health hazard, as well as negative environmental impacts that keep people in poverty. Strategies to improve energy access to the poor have focused mainly on electricity access. They have often neglected non electricity household energy access. It is, however, estimated that about 2.8 billion of people will still depend on fuelwood for cooking and heating in 2030 in a business-as-usual modus operandi (IEA 2010). The need for urgent interventions at the household level to provide alternative energy services to help improve livelihoods is becoming more and more accepted. The failure of past large-scale fuelwood plantations and improved stoves programs has generally created pessimism in the development community about the relevance and effectiveness of interventions on household energy access. Altogether, this has affected the level of policy attention considerably and consequently the allocated resources for interventions. This situation is gradually changing. There is a growing global mobilization around household energy access issues. An important milestone is the recent launching of a public-private Global Alliance on Clean Cookstoves led by the United Nations Foundation to help 100 million households adopt clean and efficient stoves and fuels by 2020 (United Nations Foundation 2010). A primary driver of this mobilization is the realization that considerable health Household Energy Access benefits in line with the Millennium Development Goals can be gained by improving indoor air pollution (IAP) with the use of efficient cookstoves and clean fuels (AGECC 2010). Discussion of household energy for Cooking & Heating access in the climate change community is also helping keep up attention on the issues. Lessons Learned and the Way Forward This report’s main objective is to conduct a review of the World Bank’s financed operations and selected interventions by other institutions on household energy access in an attempt to examine success and failure By Koffi Ekouevi& Voravate Tuntivate factors to inform the new generation of upcoming interventions. First, the report provides a brief literature review to lay out the multidimensional challenge of an overwhelming reliance on solid fuels for cooking and heating. Second, it highlights how the Bank and selected governments and organizations have been dealing with this challenge. Third, it presents lessons learned to inform upcoming interventions. And finally, it indicates an outlook on the way forward. Africa Renewable Energy Access Program (AFREA) 3 A MULTIDIMENSIONAL CHALLENGE I t is well documented that exposure to IAP from the inefficient combustion of solid fuels with low- quality stoves in poorly ventilated kitchens is a significant public health hazard. The World Health Organization (WHO) estimates that 1.9 million people die prematurely every year from exposure to smoke from traditional cookstoves and open fires; that is nearly 1 death every 16 seconds. Women and children in developing countries are particularly affected by the negative health outcomes of IAP from the use of solid fuels. Women and children in these countries are exposed daily to pollution in the form of small particulates that exceed World Health Organization and U.S. EPA recommended limits by 10 to 50 times (von Schirnding and others 2002; WHO 2006). Although there are many studies on solid fuels, IAP and their health outcomes, research gaps remain that need to be filled to inform the design and monitoring of interventions better. At the same time that strong evidence exists that links IAP to childhood pneumonia, chronic obstructive pulmonary disease, and lung cancer (from coal) in adults, the evidence is weak on how inhaling wood smoke is associated with tuberculosis, low birth weight, and cataracts. What we do not know is the exposure-response relationship between IAP and different negative health outcomes. In other words, we do not know what different dose levels of IAP cause different negative health outcomes. Evidence on the exposure-response relationship is important in order to ensure to what level exposure should be reduced to start gaining positive health outcomes. Three main areas of further research are generally acknowledged: (a) the need for better exposure assessment to make more direct measurement of exposure-response relationships; (b) the need to handle confounding better by using more adequate statistical methodology to control the effects of confounders, such as poverty, malnutrition, and housing environment; and (c) the importance of intervention studies to complete findings of observational studies (von Schirnding and others 2002; Ezzati and Kammen 2002; and Jaakkola and Jaakkola 2006). It is now widely accepted that the clearing of land for arable and pastoral agriculture is the main cause of deforestation rather than the use of wood for energy, as was believed in the past. Surrounding growing urban areas in some Sub-Saharan African countries and Haiti are some exceptions. In these settings, inefficient use of fuelwood is putting tremendous pressure on forest resources (World Bank 2009; ESMAP 2007b). The reliance on fuelwood for cooking and heating is increasingly being associated with climate change. There are claims that reducing black carbon emitted from the burning of open biomass with the use of improved stoves may provide quick gains to help slow down global warming (Ramanathan and Carmichael 2008; Gustafsson 2009). Recent research indicates that while black carbon emissions from diesel is clearly shown to have a warming effect on the climate, black carbon emissions from burning biomass in inefficient cookstoves, because of their organic nature and small-size particles, may be interacting with other aerosols in the atmosphere to produce a net cooling effect on the climate (Bauer and others 2010). It appears that current science points to uncertainties around the potential climate change impact of black carbon emissions from biomass combustion. 4 for cooking and heating, mostly in Europe and MEETING THE CHALLENGE A total of 31 projects covering the period 1989-2010 were reviewed. Nineteen of these were selected as having the Central Asian countries, and one project in Colombia. The total cost for these projects is objective of improving household cooking and US$203 million to which the Bank has heating energy access through fuelwood contributed US$126 million. management or improved stoves. The total cost of A review of the Implementation Completion these projects was US$1.2 billion, to which the D Reports (ICRs) of five closed projects indicated uring the last 25 years, household energy access issues have World Bank contributed US$698 million and of that they had performed satisfactorily. Their retained the attention of many specialists within the Bank from which US$161 million was devoted specifically sustainability was also rated likely and even different sectors, such as energy, forestry, environment, health, to household fuels. These projects focused on highly likely in the case of the Senegal community-based forest management to improve Sustainable and Participatory Energy Management agriculture and rural development, gender, and climate change. sustainable supply of fuelwood, substitution of Project. The Energy Sector Management Assistance Program (ESMAP), polluting fuels with cleaner fuels, and institutional jointly set up by the Work Bank and the United Nations Development capacity development in the household energy A review of the last and current ratings of the Programme (UNDP) in 1983, has played and is still playing a leading role in subsector. With the exception of the Mongolia Implementation Supervision Reports’ progress Urban Stove Improvement Project financed by suggests that while some of the projects seem to funding work undertaken by specialists from these different sectors. In the be showing a satisfactory performance, there are the Global Environment Fund (GEF), the specific case of Sub-Saharan Africa, the Regional Program for the Traditional remaining projects are covering Sub-Saharan also projects in the portfolio that are having Energy Sector (RPTES) supported analytical work and upstream studies between African countries. implementation difficulties. A further probe in 1993 and 2003. Since 2009, work on household energy in the Africa region is assessing the reported problems on the projects During the period of the review, the Bank rated moderately unsatisfactory or moderately supported by the Biomass Energy Initiative for Africa. Work on household funded four biogas projects for cooking and satisfactory suggests that delay in physical energy is also done within the East Asia and Pacific energy team and also by the lighting at the household level in China and implementation of activities is an important factor Asia Sustainable and Alternative Energy Program (ASTAE). Moreover, the Bank Nepal. The total cost of these projects was US$1 affecting their performance. This may be caused Climate Change Team is gradually including household energy access in its billion to which the Bank has contributed by the participatory and multidisciplinary nature US$365 million with 70 percent allocated to of these activities, which require a broad activities. household energy access components. Similarly, consensus between many stakeholders-an the Bank has financed eight natural gas projects exercise that requires a lot of time. 6 7 LESSONS LEARNED R eviewing the experience of household energy projects and their success and failure factors revealed the following important lessons: (a) a holistic approach to household energy issues is necessary; (b) public awareness campaigns are prerequisites for successful interventions; (b) local participation is fundamental; (d) consumer fuel subsidies are not a good way of helping the poor; (e) both market- based and public support are relevant in the commercialization of improved stoves; (f) the needs and preferences of stoves users should be given priority; (g) durability of improved stoves is important for their successful dissemination; and (h) with microfinance the poor can gradually afford an improved stove. 5. Both market-based and public support are produced. Successful, improved stoves programs are also relevant in the commercialization of designed bearing in mind the preferences of the users. Experience has shown that when these factors are 1. A holistic approach to household 3. Local participation is fundamental. improved stoves. ignored, stove dissemination rates are low, and programs energy issues is necessary. Experience indicates that the active participation A market-based approach in the commercialization of are not sustainable. Successful programs are designed with a holistic of communities, governments, nongovernmental improved stoves is often viewed as the best way to organizations (NGOs), and the private sector is ensure sustainability of programs. This is based on the approach on how household energy access can 7. Durability of improved stoves is important contribute to a global agenda of social fundamental for household energy access projects evidence that subsidized programs do not continue when to be successful and sustainable. For example, donor or public funding dries out. Evidence indicates, for their successful dissemination. transformation and poverty reduction. With this perspective, the programs are design to cover: (a) local communities need to be involved at an however, that a certain level of public funding is For households that can afford an improved stove, the supply-side interventions ensuring that the early stage to ensure that they own supply-side necessary at the initial program stages for improved decision to adopt one or not includes their perception of fuelwood supply is sustainable; (b) demand-side forest management initiatives. They should stoves programs to take off. This is particularly true in durability of the stoves. The durability depends on the and interfuel substitution with the introduction understand why they should be the ones settings where the business environment is not well quality of the materials used in the production of the and dissemination of improved stoves and protecting the forests in their communities. A developed. Funding is usually needed to support stove, the resistance of the stove in the climatic context alternative household fuels, such as kerosene and clear rule of engagement should be discussed for research and development (R&D), marketing, quality where it is used, how it used, and the maintenance that liquefied petroleum gas (LPG); and (c) the communities to know their rights and control, training related to stove design and is needed. It is important to account for durability issues capacity to develop and strengthen institutions to responsibilities, the prerogatives of the national maintenance, and monitoring and evaluation. Work on in the design and construction of improved stoves, in create the regulatory incentives for the sustainable forest service, the role of NGOs and local developing stoves standards and certification protocols addition to technical considerations, such as heat transfer production of fuelwood and for the facilitation of associations. rely on the availability of public funding. Without this efficiency and combustion efficiency. fuel switching. initial support, small enterprises find it difficult to participate in improved stoves programs, and scaling up 4. Consumer fuel subsidies are not a is unrealistic. A challenge is to determine what level of 8. With microfinance, the poor can gradually 2. Public awareness campaigns are good way of helping the poor. public funding is adequate and the timing to transition to afford an improved stove. prerequisites for successful a fully market-based business model. Experience has shown that across the board Availability of improved stoves and cleaner fuels is one interventions. consumer fuel subsidies are not a good way of thing, whereas their affordability is another one. Successful programs have paid particular helping the poor. Affluent households tend to 6. The needs and preferences of improved Programs that have included microfinance options to benefit the most from prevailing fuel subsidies, stove users should be given priority. help households afford the stoves tend to be more attention to public awareness, education, and given that in most cases, energy consumption successful. The poor need to have a time horizon to information campaigns. Households need to be Successful programs pay attention to the needs and increases in parallel with income. For gradually pay for the improved stoves. For example, in sensitized to the risks they incur by cooking with preferences of the users of improved stoves. Targeting governments, these subsidies result in heavy fiscal Bangladesh, Grameen Shakti has been working with inefficient stoves. Programs that have assumed households susceptible to buying and using these deficits diverting direct public expenditures away international donors to provide cookstoves as part of its that households would adopt spontaneously improved stoves and working with them to supply a from productive and social sectors. Alternative microfinance activities. This dimension is very important. improved stoves or participate in forest suitable stove that responds to their needs is critical. At options are usually designed in the form of social Having an improved stove is not perceived as a first management initiatives have failed. Households first, this target group is usually not the poorest of the protection programs. The challenge remains in priority by the poor, but by integrating the adoption of an need to perceive and to be convinced about the poor. By first focusing on households that can afford to successfully implementing these options to improved stove in a broader program, creating direct and indirect benefits associated with these adopt an improved stove, the program can subsequently effectively reach the poor. opportunities to generate income is a different interventions. capitalize on the benefits of the demonstration effects proposition. 8 9 THE WAY FORWARD T he recent momentum aimed at providing clean cookstoves and fuels to the poor is a unique opportunity that should be firmly seized for action. The World Bank is well positioned with knowledge, expertise, and the potential for funding leverage to play an important role in helping governments design effective and sustainable programs to provide poor households with clean energy solutions. However, this calls for strategic choices on what the Bank itself can do, and what it can do through partnerships. Pertinent, timely, and convincing upstream analytical 2. External partnerships WHAT CAN THE work on household energy access is necessary to WHAT CAN BE There are many organizations well grounded with strengthen the quality of the dialogue with the countries. WORLD BANK DO? Past authoritative analytical work done by the Bank and the scope of its lending operations are solid foundations DONE THROUGH tremendous experience in household energy access interventions that the Bank could partner with in The Bank can support the household energy to build on. In many countries, the upstream studies done by the Bank in the 1980s and 1990s are still the PARTNERSHIPS? innovative ways. The review of household energy access projects reveals that grassroots efforts are only detailed available ones to date. There is clearly a needed to raise the awareness of populations to access agenda by doing the following: need to update these studies. adopt alternative ways of harvesting their forests and To address the multidimensional challenge using improved stoves and fuels. These behavioral 1. Help broaden the scope of energy sector of improving household energy access to changes require a lot of time and operational 3. Strategically mainstream household energy the poor, both internal and external resources that are close to targeted communities. reform to include household energy access access interventions in lending operations. Civil society organizations, including NGOs and issues. partnerships are needed. community-based associations, and the private sector Mainstreaming will require strategic internal are better equipped to deliver on this work. The Bank is uniquely placed to help broaden the institutional and funding arrangements capable of scope of energy sector reform to include household mobilizing and using the available high-quality, in-house 1. Internal partnerships Another way the Bank can leverage partnerships is energy access issues. Through its energy dialogue with multidisciplinary expertise. As it stands, the absence of At the moment, work on household energy access to help facilitate the use of funding mechanisms on countries, the priorities are focused on power sector mainstreaming of household energy access interventions is being done by teams in the energy, health, forestry, climate change with windows that will allow funding reform, regional power trade, and electricity access in lending operations may be a result of the following gender, rural development, and climate change to be directed at technical assistance or operational expansion. Household energy access issues should be factors: (a) these projects require detailed upstream sectors. Some of these teams are with anchor work on household energy access-related issues. A raised to a level where they are viewed as commensurate studies that are time consuming, which can delay project departments and others are within operational units number of climate change mechanisms are available, with the importance they represent in the energy balance preparation; (b) the interplay of many disciplines in across Regions. Collaboration between these teams but they are either not well known by beneficiary of countries and the potential impact they can have on dealing with household energy access issues makes it can be improved. Formal partnerships between these countries or are difficult to access. In working with poverty reduction. With a global trend of rapid difficult for teams to deal with them in the context of teams will help leverage the Bank’s expertise and other multilateral and bilateral organizations and urbanization in developing countries in the coming limited project preparation budget; (c) the number of funding. Opportunities for collaboration with IFC governments, the Bank can play a pivotal role in years, issues dealing with pricing of household fuels will staff equipped to prepare household energy access teams should also be explored to help countries making this funding accessible. have increasing fiscal and macroeconomic significance. projects is low, and this expertise is scattered throughout address this important challenge. Going forward, it appears that partnerships have an Raising awareness at the highest levels of policy the institution; (d) transaction costs in preparing a important role in scaling up household energy access formulation and decision making is important to household energy access project are high compared to interventions. However, selectivity should be generating political commitment for action. the volume of lending they can leverage; and (e) the exercised in the choice of partners, and tools should demand for interventions on household energy access be developed to measure performance and impact. from countries is low, probably also to the result of an 2. Produce strategic upstream analytical work absence of awareness of the issues at stake on the part of to inform dialogue and to support technical the majority of the affected populations and of many assistance and lending operations. governments. 10 11