http://rael.berkeley.edu Task Force 2: Practical and Transformational Approaches to Accelerate the Transition: Mobilising stakeholders to raise their commitments Daniel Kammen Class of 1935 Distinguished Professor of.
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http://rael.berkeley.edu Task Force 2: Practical and Transformational Approaches to Accelerate the Transition: Mobilising stakeholders to raise their commitments Daniel Kammen Class of 1935 Distinguished Professor of Energy Energy and Resources Group | Goldman School of Public Policy Director, Renewable and Appropriate Energy Laboratory University of California, Berkeley SE4All HLG Meeting, Vienna, Austria – Nov 19, 2011 OVERVIEW • Challenge of two examples: • Cooking: visiting and revisiting a needed service with new partners • Solar in practice has consistently exceeded solar in theory (use-inspired) • Catalyze community identified and business-led products & markets • Business to business encouragement/rivalry is under-utilized (but generally flourishes long-term only when government policy support is clear) • We need to understand better where urban and rural opportunities are similar and synergistic, or distinctly different • Role of utilities today and tomorrow is under-examined/under-evolved • To date government engagement in most successful efforts has been reactive, not pre-active • Partnership in SE4All needs to reverse that traditional equation • Financial innovations (e.g. microcredit, GetFit+, …) can target a systems approach to energy access UN General #2 Assembly resolution 65/151 rael.berkeley.edu Entrepreneurial Opportunity partnership with the Tanzanian Commission on Science and Technology (COST) Educational materials: Market stall Purchased stoves rael.berkeley.edu UN General Assembly resolution 65/151 Development of markets for household energy technologies Clean Cooking Initiative: A market-transformation program with the objective to facilitate scale-up of private sector investments in clean cooking solutions in Africa… Anchored in a strategic d partnership with the Global Alliance for Clean Cookstoves Strengthen and support private sector (international and local stakeholders) along the value chain. Scale-up of sales builds the green job sector, provides a platform for innovation and provides an outlet for African entrepreneurs #4 rael.berkeley.edu Practical Experience in Market Evolution (beyond the learning curve) Actual market development October 2011 rael.berkeley.edu UN General Assembly resolution 65/151 Information and Management Tools: Regional Average generation by fuel within each load area and average transmission flow between load areas in 20262029 at 54% of 1990 emissions for the Base Cost scenario. This scenario corresponds to a $70/tCO2 carbon price adder. Transmission lines are modeled along existing transmission paths, but are depicted here as straight lines for clarity. The Rocky Mountains run along the eastern edge of the map, whereas the Desert Southwest is located in the south of the map. #6 rael.berkeley.edu Entrepreneurial Product and Market Support October 2011 rael.berkeley.edu UN General Assembly resolution 65/151 Mitigating barriers to the development of a market for modern off-grid lighting Lighting Africa is a market-based program designed to promote adoption of modern lighting technologies in off-grid areas of Africa The goal is to provide cleaner, more affordable lighting to 2.5 million people by 2012 and 250 million people by 2030. 2012 goal will be met. 2030? Lighting Africa leverages new technology advancements, such as LED lighting, to bring quality and affordable lighting and micro-energy services to people without access to electricity. The foundation of the program is identification of quality products and working across the supply chain to help with market understanding, consumer awareness, policy and regulation and access to finance. To date, 20 quality products from 13 companies have met Lighting Africa’s quality standard. They range from small task lamps to household systems, which offer multiple lights and a larger battery pack. Nearly all charge mobile phones in addition to providing lights (evolving services provided) #8 rael.berkeley.edu Service provision and utility/ESCO evolution Casillas and Kammen (2010) “The energy-poverty-climate nexus,” Science, 330, 1182 - 1182 UN General Assembly resolution 65/151 Service provision and utility/ESCO evolution Lessons from an integrated community program: •Consumer education drove (local) business engagement •Product selection, design, and re-design kept industry engaged • Industry engagement led to government attention • Government perspective led to electricity utility creation/evolution rael.berkeley.edu UN General Assembly resolution 65/151 The Electric Jeepney (eJeepney) in Makati: Transportation services utilizing energy/IT technology and regulation #11 rael.berkeley.edu Financial innovation for urban dissemination Kibera (Nairobi) initiative -Information driven in terms of both community interest and business model and opportunity (low-cost metering) -IT products are vital, and a key place to engage/further engage the private sector -Product development informed strongly by both business and community recommendations UN General Assembly resolution 65/151 OVERVIEW • Challenge of two examples: • Cooking: visiting and revisiting a needed service with new partners • Solar in practice has consistently exceeded solar in theory • Catalyze community identified and business-led products & markets • Business to business encouragement/rivalry is under-utilized (but generally flourishes long-term only when government policy support is clear) • We need to understand better where urban and rural opportunities are similar and synergistic, or distinctly different • Role of utilities today and tomorrow under-examined/under-evolved • To date government engagement in most successful efforts has been reactive, not pre-active • Partnership in SE4All needs to reverse that traditional equation • Financial innovations (e.g. microcredit, GetFit+, …) can target a systems approaches to energy access UN General #13 Assembly resolution 65/151 rael.berkeley.edu Extra / Resource slides UN General Assembly resolution 65/151 Lighting Africa Impact - Insights from Beneficiaries “I have been able to add two more hours of trading each day thanks to a small LED lighting system that costs just $20”. Eunice Wanjiru, Business Woman, Kenya “A girl in my village suffered from terrible eye infections since she was a child. Everyone thought she would never be able to see properly. Then, one day, her family replaced their kerosene lamp with a portable solar lamp. After two weeks, the girl’s eyes began to clear and the infections went away. The solar lamp gave her sight!” Conference participant, Lighting Africa 2010 Conference. “Lighting Africa’s direct business support has been tremendously valuable in our efforts to expand into the region. From providing honest, direct feedback to connecting us with distributors, experts in the field, and general industry information, our relationship with Lighting Africa has been critical to our success in the region. “ Greenlight Planet, solar lantern manufacturer “Four of our members have established themselves as resellers of the solar lighting equipment and been active in their promotion. I personally have purchased the solar lighting products. We consider this a big win from the Lighting Africa 2010 Conference.” Joanne Mwangi, Chairperson, Federation of Women Entrepreneur Association (FWEA), Kenya #15 rael.berkeley.edu Off-grid households spend annually US$8.2 billion on inferior lighting fuels Current spending on lighting by offgrid households 110 million 100% = Other 7% Biofuels 13% Candles 27% Spending is increasing 2010-2015 $8.2 billion 10% 4% Off-grid Households 32% On-grid Households SMEs Kerosene 53% $1.2 Bn $1.4 Bn $1 Bn $1.2 Bn 54% Total Primary lightsource for household1 2010 2015 $8.2 Bn $9.7 Bn $10 Bn $12.5Bn % of lighting spent per household Household lighting use surveys in 8 African geographies based on Lighting Africa and GTZ market research, extrapolated for other geographies and kerosene use triangulated with country-level data on kerosene consumption Source: Lighting Africa, GTZ, country census data, Dalberg analysis. #16 rael.berkeley.edu Cost of Service Evolution: Urban Markets Data Source: Hosier, R.H. and W. Kipondya, Urban household energy use in Tanzania. Energy Policy, 1993. May: p. 454-473. (1990) Rebecca Ghanadan, Energy and Resources Group, University of California Berkeley, field research, (2004) Monthly Cooking Cost (1994 TSh/month) Monthly Cooking Cost: Dar es Salaam, Tanzania: 1990 and 2004 10,000 2004 2004 8,000 2004 6,000 4,000 1990 1990 1990 1990 2004 2004 2,000 1990 0 Charcoal (improved) October 2011 Charcoal (unimproved) Electricity LPG Kerosene rael.berkeley.edu UN General Assembly resolution 65/151 Planned scale-up: Regional programs of Lighting Africa #18 rael.berkeley.edu