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Efficient and Affordable Urban Energy Efficient and Affordable Urban Energy

ServicesServices

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Jiwan Acharya

Senior Climate Change Specialist (Clean Energy)

Asian Development Bank

4.2 4.2 4.2 4.2 billionbillionbillionbilliontotal population of

Asia and the Pacific**UNESCAP.2012.Statistical Yearbook

for Asia and the Pacific 2013.

1.8 1.8 1.8 1.8 billionbillionbillionbillionpeople in Asia andthe Pacific depend

on burning traditionalbiomass for energy***

****IEA, 2013, World Energy Outlook 2013

615 615 615 615 millionmillionmillionmillionpeople in developingAsia have no accessto basic electricity

services****IEA, 2013, World Energy Outlook 2013

The pink region indicates population density. The white

region indicates where

modern energy is accessible.

Energy poverty is a global

problem that demands a

global solution.

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Urban Areas in Asia & PacificUrban Areas in Asia & Pacific

• In 2010, Asia and Pacific was home to 506 million informal settlers - 61% of world

population in informal settlements

• 30 % of Asia and the Pacific’s urban population is living in informal settlements

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Central Asia (Tjk, Uzb,Kryg & Kzk): Data not provided

Source: State of Asian Cities-2011 UNHABITAT Ch: 4.4.2

Region Urban Population(M) Urban Population

living in Informal

Settlements (M)

Percent

South Asia 671.79 190.74 35

East Asia 545.76 189.62 28.2

South East Asia 286.57 88.91 31

Western Asia 145.16 35.71 24.6

Pacific 2.30 0.60 24.1

Asia & Pacific

(Total)

1651 506 30.6

Energy Energy for for All All

Maximizing Access to Energy Maximizing Access to Energy

• The Energy for All Initiative is ADB’s response to widespread energy poverty in

Asia and the Pacific – energy poverty that has persisted despite the region’s

economic success.

• ADB, through Energy for All is leading regional efforts to expand access to clean,

modern energy for everyone.

• Energy for All works for energy access by increasing ADB’s own investments,

identifying and scaling-up of successful business models for energy access, and

through partnerships with stakeholders, governments and the private sector.

• Strong involvement of the private sector to incubates business models from start-

up to sustainability through our Project Development Facility.

• Launch of Energy for All Partnership in 2009 as a platform for key stakeholders in

energy access to provide 100 million people with access to energy by 2015.

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Energy fEnergy for or All All

ADB’s investment in energy access 2008ADB’s investment in energy access 2008--2013 (Cumulative)2013 (Cumulative)

456,807 714,654

2,268,782

9,995,708

13,391,834

15,639,131

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2008 2009 2010 2011 2012 2013

Improved energy access (households)

Energy Access Investment (in million $)

YearEnergy access investment Number of households

Accomplishments 2013

• New connections to electricity for 1.7 million households

• Improved electricity service to about 500,000 households

• The switchover of 90,000 households currently burning firewood and other biomass to improved

cookstoves

Energy Energy for for All All

Common Energy Sources of Common Energy Sources of PeriPeri--Urban Societies Urban Societies

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Facility Sources Limitations

Electricity • Illegal connection-hooking

• Power purchase through illegal

service provider.

• Wire through neighbors

• No electricity-use of kerosene

lamps/candles

• Intermittent supply

• Limited load

• Voltage variation

• Fear of being caught/fined

• End up paying more money

Cooking • Kerosene stoves

• Traditional biomass stoves

• LPG (only higher income group)

• Expensive to use

• Lower quality of energy supply

• Time consuming

• Storage and availability issues

Heating • Wood

• Coal and dung cakes

• LPG based heaters (only higher

income group)

• Expensive to use

• Lower quality of energy supply

• Time consuming

• Storage and availability issues

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Energy Sources of the Energy Sources of the PeriPeri Urban SocietiesUrban Societies

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Source: Clean Energy for the Urban Poor-An Urgent Issue( GENSED)

Improving Energy Access to the Urban Poor in Developing Countries(GENSED)

Bangkok, Thailand

32% of households are

connected Illegally,

hooking/neighbors.

India

•A private company in a

Delhi informal settlement

identified 6,500 out of

8,700 of its consumers

(77%) as having no legal

access to power.

• In informal settlements

visited by TERI, most of the

households used illegal

connections

Bangladesh

• 90% use biomass for cooking which leads to

46,000 deaths per annum due indoor air

pollution.

• The average cooking time is about six hours a

day, and the time spent to collect fuel by the

poor is about 200 hours per year(1.85 hrs/day).

• The lowest income group in Bangladesh

spends 15% of its annual income ($ 45) on

cooking fuels.

Photo credit: reivax@Flickr

Photo credit: adrian fisk@Flickr

Energy Expenditure as a Portion of the Monthly Budget forEnergy Expenditure as a Portion of the Monthly Budget for

Urban Low Income CommunitiesUrban Low Income Communities

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Country Energy

Source

End Use % of monthly

expense

% of total

monthly

income

India

Cooking

• LPG: 09% ( use rises with income level)

• Biomass: 65%

• Kerosene: 10%

• Others: 16% 13%

Lightning• Grid Electricity: 54%

• Kerosene: 29%

• Others: 17%

Thailand

(Khon Kaen

& Bangkok)

Cooking

• Kerosene: 93%

• Biomass: 7%

• Electricity: 40% (where available) Electricity: 16 %

Cooking : 08%

24 %

Lightning

• Grid: 100% in Khon Kaen & Bangkok.(In

Bangkok, 68% connected through

municipality and 32% having illegal

connections)

Energy Spending Limits-GIZExpenditures for energy do not exceed 10 percent of the household income or not require more than 10 percent of the

working hours of a household member.

Sources:

India: Supply of clean energy services to urban and peri-urban- Report prepared by TERI for Global Network on Energy for Sustainable

Development (GNESD) / Thailand: Energy Access in Urban Slums - Report prepared by AIT for Global Network on Energy for Sustainable

Development (GNESD) Poor people Energy Outlook-2012

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Energy For All Energy For All

Impacts of Urban Energy Poverty Impacts of Urban Energy Poverty

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Factors Impact

Social • Urban poverty

• Gender inequality and violence against women

• Crime

• Social exclusion

Health and Safety • Indoor air pollution due to use of biomass and kerosene.

• Hazards of illegal electricity hooking - fire and electrocution.

Income • Limited opportunities to develop income generation activities.

• High cost of energy - end up paying more money to acquire and

maintain illegal electricity connection.

• Low quality of service-voltage surges, blackouts damage to

household equipment.

Education • Lack of quality indoor lighting to study

• Limited time to study

Security • Lack of street lightning - dark streets

Climate Change • “Black carbon” from the incomplete combustion of fossil fuels

and biomass

Challenges to Energy Access for the Challenges to Energy Access for the

Urban Low Income CommunitiesUrban Low Income Communities

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Distribution Companies

(Utility Service)

• Expectation of low returns

• Internal corruption through

involvement in fraud or theft

• Lack of experience in dealing

with urban low income

populations

• Infrastructure and access

problem in extending grid

• Lack of government interest

or regulatory incentives

• Physical access problems in

informal settlements

• Weak law enforcement

presence in informal

settlements

Public Organizations

• Policy and Administrative

Issues

� Lack of Inter departmental

coordination- central,

provincial, municipal,

distribution co etc.

� Policy intervention -

energy, social, urban

planning, security,

distribution etc.

• Regulation and incentives for

service providers in urban

low income areas

•Political Pressures

Private Investors

• Expectation of low returns

• High infrastructure cost

• Lacking:

� business volume

� regulatory and policy

frame work

� recognition/illegal status

� market surveys for

potential businesses

opportunities in urban low

income communities

• Recovery issues

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Issues in Issues in PeriPeri urban Societiesurban Societies

Issues Policy Options or Instruments

Issue 1:

Recognition of informal settlements

Illegal nature of settlement/occupancy

Current targets for improving quality of life

in informal settlements do not include

access to modern energy among basic

services.

• Organizing and mobilizing communities to conduct

policy dialogue and negotiations with responsible

agencies to attain quasi residential status/NOC to

allow them to accede to basic energy services.

• Capacity development in leadership, participation

and legislation to give them voice, recognition and

opportunity to prove themselves as a responsible

citizen.

• Develop energy policies to ensure that energy

forms part of all actions to improve access to basic

energy services in urban low income areas.

Issue 2:

Affordability and high upfront cost

Inability to pay utility charges on a regular

basis

• Design and introduce consumer friendly ways of

spreading costs (installments, subsidies etc).

• Introduction of micro financing schemes to cover

upfront cost.

• Special tariff schemes. Or community metering.

• Introduce energy efficient appliances at special

rates.

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Issues in Reaching the Urban Issues in Reaching the Urban

Low Low Income Communities Income Communities

Gaps in Access to Energy Policy Options or Instruments

Issue 3:

Poor infrastructure support and unreliable

service delivery

• Design and introduce efficient and reliable energy

service delivery mechanism at door step.

• Build trust of service provider and community

upon each other.

Issue 4:

Lack of knowledge and awareness in green

construction technologies, urban poor

housing is poorly insulated and ventilated

and often dark.

• Promote green architecture

• Capacity development in new construction

technologies to build climate friendly houses.

• Most economical and energy efficient

construction designs based on local materials.

• Build knowledge networks

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Energy for All Energy for All

Key Activities in Green CitiesKey Activities in Green Cities“Access to Energy for Urban Poor” is a new component of E4All program to

support ADB’s operations departments to identify, design, develop & pilot projects

to address this unmet need of energy access in urban poor areas.

•Support to Policy Framework, Knowledge Networks and Capacity Development

•Support to Project Identification and Development

•Promote Green Architecture and Energy Efficient Construction Methods

•Pilot Demonstration Projects

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Energy For AllEnergy For All

Key Interventions to Support Green Cities Key Interventions to Support Green Cities

Interventions Activities

Electricity • Access to legal and safe electricity connections through

community participation.

Heating and Cooking • Energy saving cooking stoves

• Access to natural gas and LPG

• Community toilets with attached biogas plants

Enabling Policy Environment &

Knowledge Sharing

• Educating and mobilizing slum communities to overcome

recognition barriers.

• Policy dialogue with stakeholders to create sustainable

energy policies (special tariff, targeted subsidies etc.)

• Promote legislation that improves environmental

conditions in slums.

Energy Efficient Housing Designs

/Green Architecture

• Enhance the capacity of architects, communities,

construction companies etc. on energy efficient designs to

cater extreme weather, best use of natural lighting and

house warming/cooling techniques.

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Thank you!Jiwan Acharya

Senior Climate Change Specialist (Clean Energy)

+632 632 6207 jacharya@adb.org

http://beta.adb.org/sectors/energy/programs/energy-for-all-initiative

http://www.energyforall.info

www.facebook.com/energyforallpartnership

@EnergyForAll

Energy for All Energy for All