ENERGY ACCESS AND CLIMATE CHANGE: A

DEVELOPING COUNTRY PERSPECTIVE

B. Sudhakara Reddy

Indira Gandhi Institute of Development Research Mumbai, India

We can not solve the problems that we have created with the same thinking that created them

--Albert Einstein

In India 450 million people have no access to electricity and an additional 500 million people have access to unreliable electricity

780 million people cook using traditional fuels

Reasons

(i) Accessibility

(ii) Affordability

Result

Loss of natural resources

Prohibits economic opportunities and growth

Social inequity between gender, groups and regions

Degrades environment: local, national, and global

Energy and Development - India

1950 2010 Residential 70 38 Industry 18 32

Transport 5 11

Services/Others 7 19

Total 85 720 (MTOE)

Revisiting facts and Figures Indian Energy Growth Trajectories-

Sector-wise (%)

Household Energy (% shares)

1950 2010 Bio-fuels 97.1 67.2 Kerosene 1.8 2.7 LPG/Electricity 27.2 Others/No cooking 1.0 2.9 Total households 57 251 (million)

Energy Accessibility Indicators - Cooking

Region Category Population (million)

Households (million)

Share of HH having access to LPG/Biogas (%)

Current level of access (%)

Target (million)

Urban Mega (more than 10 million) cities 53 10.6 90

Metros (5–10 million) 32 6.4 85 Other cities (0.5–5 million) 101 20.2 75 Small towns (less than 0.5 million) 191 38.2 50

Total 375 84 65 29

Rural 835 167 11 11.0 148

Energy Accessibility indicators - lighting

Year

Village electrification Households electrification

Villages electrified

% share CAGR (%)

Households (million)

Electrified (%) CAGR (%)

1947 1500 0.28

1951 3061 0.57 8.2 61 0.02

1961 21750 4.03 24.34 68 1.5 1.2

1971 106931 19.81 19.36 78 5.1 1.5

1981 273906 50.75 11.02 92 14.7 1.9

1991 474982 88.00 6.31 114 30.5 2.4

2001 481124 89.14 0.14 137 43.5 2.1

2011 493240 91.38 0.28 167 55.0 2.2

Energy affordability indicators

Region/Energy Carriers % share of HH using various fuels

Poor Non-poor Total

Rural Solid 93.5 66.4 75.1

Liquid 3.7 11.5 8.9

Gas/Elec. 1.1 21.3 14.7

No cooking 1.7 0.8 1.1

Total households (million) 52 110 167

Urban Solid 85.5 32.3 47.5

Liquid 6.7 4.5 5.1

Gas/Elec. 4.5 62.1 45.7

No cooking 3.3 1.1 1.7

Total households (million) 25 59 84

Economic losses

Item Losses/year

Productive time for adults (billion Hrs) 110

Productive time for children (billion Hrs) 78

Resources

– Kerosene/Petro. products imports (billion US$) 3.7

– Forests/plantation (million hectares) 3.0

Health – working days lost (billion Hrs) 1.02

Education – loss of hours (billion Hrs) 78

Pollution (Mt of CO2) 694

Each household’s BASIC ENERGY REQUIREMENT is comprised of

– Light - four to five hours per day – Fan – six to eight hours a day – power point supplying electricity - power a TV or charge cell

phone – Efficient cooking services

– Cooking – Gasseous fuels In rural and per-urban areas a community biogas digester can

supply cooking energy services. – Lighting: Electric power Hilly regions/Dispersed population – off grid Village not electrified - De-centralised renewable source Village electrified-HH not electrified – National Grid

The new business model (Entrepreneurship-based)

Costs Cooking Lighting

Rural Urban Total

Total No of HH (million) 167 84 251 HH 74

HH deprived (million) 148 8 156 Demand (MW) 7772

Cost of biogas (per m3) plant (Rs.) 5000 8000

Capacity cost (000 s/KW) 60 - 80

Requirement of gas per HH (m3) 1 1 1

T & D cost (000 Rs./KW) 10 - 35

Total installation cost (billion Rs.) 743 67 810

Cost/village (Rs. million) 0.9 to 1.4

Piping requirement (m) per HH 25 15 25

Total cost (Rs. billion) 817

Piping cost per km (Rs.) 60000 60000 60000 Street lighting 5.4

Piping cost (Rs. billion) 166 11 176

Grand total 823

Total cost (Rs. billion) 965 75 1040

Benefits through modern energy services (USD/HH/month)

Benefits Per HH/Total Time saved for household chores/increased leisure 5.5

Productivity/Home business

Existing 3.2

New 2.3

Lighting 10.3

TV 7.5

Education 6.2

Improved health 0.02

Reduced fertility 0.08

Energy savings (GJ/annum) 8.0

Carbon savings (Total HH/year 43.0

The Implementation

What “they” can do and what “I” can do?

State Importing &

Exporting Countries

UNFCCC

Academia

Aligning the Actors

Carbon Trading Companies

Consumers

Service Providers

Utilities & Suppliers

Equip. Manf.

Financial Inst.

Developed Economies

CDM Projects & Technology Transfer

Policymakers

Tech R&D (EERT Agencies)

Local NGOs

Domestic Industries

Foreign Industries

Energy Security Climate Security