UN-Habitat
Enhanced Energy Access for the Urban Poor: Best Practice Casebook

Enhanced Energy Access for the Urban Poor

Best Practice Casebook

Draft

August 2012

Submitted by:

Fredrick O. Ochieng

Consultant

UN-Habitat

Urban Energy Unit

Contents

Terms of Reference and Delivery Schedule
Glossary
Acknowledgements
Second Draft Best Practices Casebook Notes
Introduction
Case Studies / 3
4
6
7
9
Community Biogas: Kibagare Bio-centre
Domestic Biogas: The Support to MDG Water and Sanitation Sector Programme
Industrial Biogas: Ibadan Cows to Kilowatts Project
Municipal Solid Waste: eThekwini Landfill Gas to Electricity Project
Wind Generated Electricity: Wind Energy Application in Eritrea
Solar Cookers: AFIMA Solar Cookers Promotion Project
Solar Water Heating: Solar Water Heating in El Menia
Bioenergy: Ethiopia Ethanol Stoves
Micro Hydro: Community Based Watershed Management and Hydro Power
Slum Electrification: The Ahmedabad Slum Electrification Programme
Public Lighting: Adopt a Light Slum Lighting Project
Affordable LPG: Urban and Peri-urban Butanization Project
The Role of Microfinance Institutions: Project Urja
Appropriate Technologies: A Litre of Light
Energy Market Development: Lighting Africa
Home Retrofitting: Kuyasa Low Income Urban Housing Energy Project
Improved Cook Stoves: The Energy Intervention Programme
Street Lights Retrofitting: Energy Efficient Street Lighting
Eco-Housing: Kutlwanong Eco-Housing Pilot Project
Sustainable Charcoal Use: Promoting the use of Biomass Briquettes
Low Income Social Tariff: Electricity Sector Law 10.438
European Solar Thermal Ordinance: Barcelona Solar Obligation
Basic Services Support Tariff: Free Basic Electricity
Eco-Mobility: Mexico City Bus Rapid Transit System
Fuel Conversion: CNG as a Transport Fuel for Poverty Reduction
Sustainable Energy Partnership: Sustainable Energy for Tshwane / 11
14
17
19
22
24
26
28
30
33
35
37
39
42
45
47
49
52
54
56
58
61
63
65
67
69
Conclusion / 71

Annexes

Terms of Reference and Delivery Schedule

Consultancy to Develop a Best Practices Casebook on Enhanced Energy Access for the Urban Poor

Activity / Delivery / Status
Desktop review of existing practices on urban energy taking into account regional balance with particular attention on developing countries
Preparation of an inception report and a template for documenting practices with a good analytical structure / 28 February 2012 / Completed
Collection of practices and liaising with people involved in the practices to have updated or missing information
Development of a first draft casebook for review including case studies collected during the above activity / 31 May 2012 / Completed
Compilation of more case studies (maximum of 10 per thematic areas of urban energy technology/services)
Development of second draft casebook / 08 August 2012 / Completed
Contribute to the organization of an expert group meeting and present the latest draft casebook for comment + inputs
Finalization of the best practices casebook incorporating comments and inputs received during the expert group meeting or any other document review

Glossary

AEL: Asia Electronics Limited

AfDB: Africa Development Bank

AFIMA: Association of Women Engineers in Mali

AMC: Ahmedabad Municipal Corporation

BRT: Bus Rapid Transit

CDM: Clean Development Mechanism

CDF: Constituency Development Fund

CER: Certified Emissions Reduction

CFL: Compact Fluorescent Lamp

CMC: Community Management Committee

CNG: Compressed Natural Gas

DEEP: Developing Energy Enterprises Programme

ESMAP: Energy Sector Management Assistance Programme

EU: European Union

FAO: Food and Agriculture Organization

FBE: Free Basic Electricity

GEF: Global Environment Fund

GHG: Green House Gasses

GVEP: Global Village Energy Partnership

ICLEI: International Council for Local Environmental Initiatives

ICS: Improved Cook Stoves

IEA: International Energy Agency

IFC: International Finance Corporation

KCIHT: Kutlwanong Civic Integrated Housing Trust

LED: Light Emitting Diode

LIT: Low Income Tariff

LPG: Liquefied Petroleum Gas

LWF: Lutheran World Foundation

MCEC: Multifunctional Clean Energy Centre

MDG: Millennium Development Goals

MFI: Micro Finance Institution

MSW: Municipal Solid Waste

NGO: Non Governmental Organization

PCF: Prototype Carbon Fund

RET: Renewable Energy Technology

SEED: Sustainable Energy for Environment and Development

SELCO: Solar Electric Light Company

SET: Sustainable Energy for Tshwane

SEWA: Self Employed Women Association Bank

SGP: Small Grants Programme

SHS: Solar Home System

SSN: South South North

SWH: Solar Water Heaters

UNDP: United Nations Development Programme

UNFCCC: United Nations Framework Convention on Climate Change

UNHCR: United Nations High Commissioner for Refugees

UNOPS: United Nations Office for Project Services

USAID: United States Agency for International Development

USEPA: United States Environmental Protection Agency

VAT: Value Added Tax

WHO: World Health Organization

Acknowledgements

We are indebted to the following persons who provided invaluable input into the development of this casebook. Involved in one capacity or another with the organizations that were active in the implementation of the best practices, they took time off their busy schedules to provide updates on the state of the projects and to verify the accuracy of the write ups.

Prasanta Biswal / SELCO
Nazario Cacayan / Yamog Renewable Energy Development Group
Stephen Gitonga / UNDP
Douglas Mothusi Guy / PEER Africa International
Eric Moukoro
Harish Hande / WAC Programme in Dakar
SELCO
Alexandre Mansuco / USAID Brazil
Josiah Omotto / Umande Trust
John Parkin / eThekwini Cleansing and Solid Waste Unit
Joana Querol
Elisa Derby
Eric Moukoro / City of Barcelona
Winrock International
UN-Habitat Water for African Cities Programme

Casebook Notes

The Second Draft Casebook follows the completion of the third phase as described in the terms of reference of the consultancy to develop a best practices casebook for enhanced energy access for the urban poor. Similar to the second phase of the consultancy, the tasks in this phase involved liaising with various contacts for information and updates on best practices in energy access for the urban poor. These have been included whenever they have been made available. A total of 26 best practices focussing on the 4 thematic areas including renewable energy systems, energy access, energy efficiency and energy legislation and planning are presented in this draft. The best practices encompass the following;

Renewable Energy

·  Community Biogas in Nairobi, Kenya

·  Industrial Biogas in Ibadan, Nigeria

·  Landfill Gas to Electricity, eThekwini, South Africa

·  Support to MDG Water and Sanitation Sector Programme, Niono, Mali

·  Wind Generated Electricity in Assab, Eritrea

·  Solar Water Heating in El Menia, Egypt

·  Solar Cookers in Bamako

·  Bioenergy in Addis Ababa, Ethiopia

·  Micro Hydro Generated Electricity in Davao, Philippines

Energy Access

·  Slum Electrification in Ahmedabad, India

·  Public Lighting in Nairobi

·  Affordable LPG in Urban and Peri-urban Senegal

·  Role of Micro Finance Institutions, Ahmedabad

·  A Litre of Light, Manila, Philippines

·  Energy Market Development, Kenya and Ghana

Energy Efficiency

·  Home Retrofitting in Cape Town, South Africa

·  Eco-housing in Kimberley South Africa

·  Improved Cook Stoves in Saidpur and Parbatipur in Bangladesh

·  Street Lighting Retrofitting in Akola, India

·  Sustainable Charcoal Use in Kampala, Uganda

Energy Legislation and Planning

·  Low Income Social Tariff in Brazil

·  European Solar Thermal Ordinance in Barcelona, Spain

·  Basic Services Support Tariff in South Africa

·  Eco-mobility Services in Mexico City, Mexico

·  Public Transport Fuel Switching in Dhaka, Bangladesh

·  Sustainable Energy Partnerships Tshwane, South Africa

The best practices featured all have clear, measurable goals and have been selected to highlight the potential of well-implemented projects and activities to provide solutions that can be successfully employed to improve the livelihoods of the urban poor. A vast majority of the energy poor live in developing countries and this is reflected in the selection of the practices featured in this casebook. A total of 25 out of the 26 best practices featured in the casebook are from developing countries. Also included in the Annexes of this draft is the correspondence carried out with the people who were involved in the implementation of the best practices. Their input has included the verification of the acuity of the best practices as presented in the casebook and the provision of photographs and updates regarding the latest news on the performance of the relevant projects.

Introduction

50% of the world’s 7 billion people are now urban dwellers. However, the development of infrastructure in cities and towns all over the developing world has been outstripped by the rapid rate of urbanization which has resulted in the proliferation of informal settlements in densely populated areas that pose serious challenges for the economic, social and environmental sustainability of cities. This rapid urbanization, caused by migration from rural areas has left cities unable to create employment opportunities and provide important basic social and administrative services and infrastructure including health, education, security, modern energy and water.

Approximately one billion people currently live in slums and the world slum population is projected to reach 1.4 billion by 2020. Life for the urban poor is characterized by a number of low human development indicators of which low income and energy poverty typified by the lack of adequate modern energy for the basic needs of cooking, warmth, lighting and essential energy services for schools, health centres and income generation are among the most significant manifestations. Many of the urban poor in Africa, South East Asia and East Asia can be described as living in conditions of energy poverty. The prevalence of energy poverty in cities in these regions is caused by the fact that due to rapid urbanization, the demand for energy services by far outstrips the ability of the utilities to extend their services given that a large portion of the rapidly growing demand stems from low income households who are unable to afford high upfront connection costs. Other main contributory factors to the lack of access to modern energy among the urban poor are the high mobility of slum inhabitants and a lack of physical addresses and land tenure.

In 2009, the International Energy Agency (IEA) estimated that 121 million people living in urban areas of sub-Saharan Africa did not have access to electricity. The corresponding numbers for Asia and India were estimated at 81 million and 21 million respectively. The number of urban dwellers fully dependent on traditional biomass was estimated at 177 million, 240 million and 87 million for Africa, Asia and India. The costs associated with using traditional fuels and the benefits accrued following the introduction of modern energy services underscore the importance of ensuring that the urban poor also have access to modern energy. Without access to modern energy services, it is almost certain that the global aspirations outlined in the MDGs, articulating the world’s commitment to improving the lives of slum dwellers will not be achieved within the stipulated timescale.

This casebook is being developed to highlight successful practices with the primary focus of providing enhanced energy access for the urban poor. The featured best practices illustrate the multiple benefits of increased access to modern energy services for the urban poor. These include improved include household income from paying lower prices for legal electricity than for electricity sold by exploitative, illegal operators and health benefits from reduction in indoor air pollution for households using kerosene and traditional biomass for lighting and cooking. Other benefits documented include;

·  Improved household security as a result of fewer fires and good quality lighting at night;

·  Morale boosts in social status associated with households making the transition from social exclusion to social inclusion;

·  The potential to increase educational levels and educational achievement as a result of children having adequate lighting to read and do their schoolwork in the evenings.

UN-Habitat

UN-HABITAT is the United Nations agency for human settlements and the built environment. The agency is mandated by the UN General Assembly to promote: Sustainable urban development and adequate shelter for all. UN-Habitat is the lead agency for the MDG 7 target on improving the living conditions of the slum dwellers. The provision of urban basic services, including water, sanitation and energy, at an affordable price plays an important role in achieving these development goals. Energy is particularly relevant in the question of affordability of urban service provision. Modern and affordable energy services are indispensable for development and prosperity, for poverty alleviation, gender equality, health and food security.

Energy is therefore very important in the context of UN-Habitat’s mandate to promote sustainable urbanization making urban energy one of the priority areas of UN-Habitat’s Medium Term Strategic and Institutional Plan (MTSIP) within the focus area on environmentally sound basic urban infrastructure and services. The UN-Habitat Urban Energy Unit’s work is organized around four thematic clusters:

I.  Energy access with particular reference to the urban poor

II.  Energy efficiency in the built environment

III.  Renewable energy technologies in urban areas

IV.  Urban energy planning, legislation and finance

More specifically, the Urban Energy Unit’s activities include:

·  Awareness creation, advocacy, capacities building and policies development to enhance access to clean energy, promote energy efficiency and energy services;

·  The development of demonstration projects on RETs, EE and general energy related projects that enhance pro-poor access to affordable public services;

·  The documentation of lessons learnt to promote replication of best practices, up scaling, policies formulation and capacity building; and

·  The enhancement of consumer demand for efficient, affordable and environmentally sound basic services.

With access to modern energy services for the urban poor having grown in importance to be at par with poverty reduction strategies such as income growth, employment and access to basic services such as health education and clean safe water, the Urban Energy Unit’s mandate reflects the need to improve the lives of the urban poor through access to modern energy.

RENEWABLE ENERGY: Community Biogas (1)
Title of Best Practice / Kibagare Haki Zetu Bio-centre
City/Town / Nairobi
Country / Kenya
Source / Umande Trust (2011): Kibagare Hazi Zetu Bio-centre. Umande Trust, Nairobi
www.unhabitat.org/bestpractices/2008

Background

It is estimated that 15,000 people live in Kibagare an informal settlement in Nairobi. Prior to the Kibagare Haki Zetu Bio-centre project, the settlement’s sanitation system consisted of a few private, plot-based latrines and unevenly distributed communal latrines. This meant that that open- defecation and the use of flying toilets (polythene bags used to dispose of human waste) was common place. This lack of proper sanitation facilities was exacerbated by the high cost of safe drinking water purchased from private vendors who charged up to 50% more. The inadequate provision of sanitation and safe water often resulted in the spread of water-borne diseases such as cholera, dysentery, diarrhoea and typhoid which have been identified as the leading killers of children below five years of age in slums in Kenya. The project’s objective was to improve the quality of life of the slum dwellers while providing them with access to affordable water and modern energy and sanitation facilities managed by the community. Umande Trust, a national NGO was responsible for the design and construction of the bio-centre while project funding was provided by the Swedish government.