Can renewable energy help reduce poverty?

Current patterns of energy production are polluting, unsustainable and characterised by unequal consumption and access. Finding appropriate energy solutions for economic growth and increased social equity, while protecting the environment, is a massive challenge. Some countries are showing how to develop renewable energy technologies suited to local conditions.

A publication from the Global Network on Energy for Sustainable Development (GNESD) assesses the potential for renewable energy technologies (RETs) and suggests how to overcome barriers to their spread and use.

Energy deficiency limits people’s development. Heavy dependence on traditional biomass for cooking and heating is accompanied by problems of ill health and environmental degradation. Finding a feasible way to address the energy problems of poor people is a crucial precondition for development and environmental protection.

GNESD research shows that in countries where there have been stable and long-term policy frameworks – as in Brazil, China and South Africa –significant progress has been made in promoting RETs such as biofuels, small hydroplants, domestic solar hot water and drying systems and small scale wind turbines.

Many energy initiatives in developing countries have failed, however. Sophisticated electricity-producing renewable energy technologies have been imported without considering the local context. Many heavily subsidised or donor-sponsored projects become unsustainable once external funding ends and subsidies are withdrawn. Even though the initial costs of most available RETs are coming down, they are still far beyond the ability of poor individuals and communities to purchase and maintain.

Other shortcomings include:

• the continued emphasis on provision of modern energy supplies using centralised grid-based systems common in the industrialised world
• a failure to link RET projects with other development challenges such as health, poverty, education and regional development
• a focus on RETs for residential supply to low income households, rather than for productive uses: this has not taken full advantage of the potential of non-electrical RETs and has made financial institutions wary, considering them risky and unprofitable
• a failure to involve the banking sector and micro-finance institutions
• poor coordination and sharing of experiences within and between countries.

The real barriers to sustainable RETs are not technological but the absence of an environment that enables policymakers and researchers to focus clearly on the development of appropriate technologies as part of a holistic approach to development. Well-thought out policies are needed, not scattered projects.

Policymakers must realise acknowledge that:

• If communities are not consulted about their needs and capacities, there will be a mismatch between what is provided and what is required.
• Policies are needed to ensure RETs are more attractive to the private sector.
• Poor people need to be better informed about how RETs work – awareness is generally low among this target group regarding RETs.
• There is high potential for local job generation through system manufacture, operation and maintenance and renewable resource extraction and processing.
• Users and repair staff must be trained on maintenance to enhance the sustainability of RETs.

Source(s):
‘Poverty Reduction: Can Renewable Energy make a Real Contribution?’, Global Network on Energy for Sustainable Development, May 2006 (PDF) Full document.

id21 Research Highlight: 22 January 2008

Further Information:
Global Network on Energy for Sustainable Development
Risoe National Laboratory, Bldg. 142
Frederiksborgvej 399
P.O. Box 49
DK 4000 Roskilde
Denmark

Tel: +45 46775189
Fax: +45 46321999
Contact the contributor: sharif@risoe.dk; mette.annelie.rasmussen@risoe.dk

Global Network For Energy for Sustainable Development, Denmark

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'Biofuels, climate change and GM crops – who is really benefiting?' id21 viewpoints

'Biofuels, trade and sustainable development'

'Can biofuels reduce poverty and tackle climate change?'

'Energy access: a prerequisite to achieving the Millennium Development Goals'