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Policy Scenarios for Achieving Universal Modern Energy Access by 2030

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2005 2030 - No new policies 0

0.2 0.4 0.6 0.8 1.2 1.4 1.6 1.8

1

ALRI, Children < 5

COPD, Women > 30 COPD, Men > 30

Heart Disease, Adults > 30

Potential lives saved

Deaths in Millions

Fig 5: Premature deaths attributable to solid fule use in homes

0 200 400 600 800

0.0 0.3

0.6 0.9

1.2

Cumulative costs of policies for cooking between 2010-2030 in billion 2005 US$

Population without access to modern fuels in 2030 in billions

No New Policy

fuel price support 25%

fuel price support 50%

fuel price support 75%

gaining access

Sub-Saharan Africa

South Asia

Pacific Asia No credit access

credit access at 30%

credit access at 15%

Fig 4: Relative cost-effectiveness of fuel price support (FPS) policies and microcredit

schemes for stove prchases

Urban/Rural Population

Households

Demand for energy goods

Fuel Preferences (energy goods only) Urban/Rural

GDP

Microfinance Income

Distribution

Household Survey Data

Inconvenience Cost

External data /

assumptions Demand

Discount Rates

Policies

Fuel Price Support Fuel Prices

Production Energy Sector

Appliance Cost

Carbon Price

Consumer Fuel Prices

Electrification

Fig 3: Schematic overview of the MESSAGE-Access Model

0 2,000 4,000 6,000 8,000 10,000

R0 R1 R2 R3 R4 R5 U1 U2 U3 U4 U5

Rural Urban

Residential Final Energy [MJ/cap-yr]- Electricity

LPG Kerosene Charcoal Firewood

0 2,000 4,000 6,000 8,000 10,000

R0 R1 R2 R3 R4 R5 U1 U2 U3 U4 U5

Rural Urban

Residential Final Energy [MJ/cap-yr] Electricity

LPG Kerosene Charcoal Firewood

Sub-Saharan Africa South Asia

Fig 2: Household energy use patterns across rural and urban expenditure quintiles in 2005

Number of people without access to electricity per km2

Number of people using solid fuel for cooking per km2

0-50 >250

0 50-250

>700 450-700 120-450 0-120

Uninhabited area and area with access to modern energy

Fig 1: Current global distribution of population without access to electricity and modern cooking fules + stoves in homes

We estimate that universal access to modern cooking stoves and fuels and complete rural electrification by 2030 is achievable in South and Pacific Asia and Sub-Saharan Africa if additional investments of USD2005 62 billion are made annually (~ 5% of

global energy sector investments today).

Dedicated policies and targets will be

needed to achieve these goals. Universal access to modern cooking stoves and

fuels can most effectively be achieved only when policies that lower modern fuel costs (e.g. subsidies on LPG) are

implemented in combination with poli- cies that lower modern stove costs

(either through cheaper credit from mi- crofinance institutions or grants for stove purchases).

The successful implementation of such policies can result in multiple benefits.

The most important of these are im-

provements in human health. About 1.5 million lives could be saved in 2030, if all households gain access to modern fuels and stoves.

Household demand for electricity and modern cooking fuels will rise due to im-

proved access to these energy carriers, but total household final energy use could decrease because of large efficiency gains of transitioning away from the current in- efficient use of traditional solid fuels and kerosene/paraffin. The total greenhouse gas emissions impacts are thus also, likely to be negligible.

• Ambitious targets and dedicated policies are vital to achieving universal modern energy access goals by 2030.

• Additional investments of USD2005 62 billion per year are required till 2030, necessi- tating extra financing from governments, the international community and private sector.

• Technological options and program design need to be context specific, locally ac- cepted and integrated with wider developmental and poverty alleviation efforts.

• Significant capacity building is required to support deployment of new technologies in remote rural regions and provide innovative financing mechanisms to make these technologies affordable at a commercial scale.

• Tying income generation policies to energy access policies is desirable to raise living standards and improve the viability of such efforts in the longer term.

• About 20% of earth’s population is unelectrified. Another, almost equivalent number has irregular and unreliable access to electricity.

• Over 40% of global population depends on traditional solid fuels (unprocessed biomass – firewood, crop and animal residues – or coal and charcoal) for cooking and heating.

• A lack of access to modern energy has negative consequences for human health, well-being, and productivity. It also contributes to damages to the local and global environment.

• Without additional new policies and targets, we estimate by 2030:

o The number of people dependent on solid fuels may rise from current levels due to population growth;

o About 800 million people in rural South Asia and Sub-Saharan Africa will stay unelectrified.

Results – Costs Significant, But Potential Benefits Multiple

Challenges

We started with a bottom-up assessment of existing energy demands, choices,

access, income levels and ability to pay of diverse household groups, distinguishing between rural and urban regions and five or more expenditure quintiles or classes.

We focused on those regions where the existing access gap is the largest.

Using IIASA projections of urbanization, income growth and population growth, we then estimated how household energy demands were likely to develop over the

next two decades.

These data inputs and projections were used to calibrate a dynamic linear optimiza- tion model – MESSAGE-Access to assess the likely impacts of alternative policy sce- narios for achieving access goals by 2030.

Analysis - Methods & Model

Conclusions and Policy Implications

For Further Details Refer to:

Riahi, K. et al., 2012: Chapter 17 - Energy Pathways for Sustainable Development. In Global Energy Assessment - Toward a Sustainable Future, Cambridge University

Press, Cambridge, UK and New York, NY, USA and the International Institute for Ap- plied Systems Analysis, Laxenburg, Austria, pp. 1203-1306.

Pachauri, S. et al., 2012: Chapter 19 - Energy Access for Development. In Global Energy Assessment - Toward a Sustainable Future, Cambridge University Press, Cambridge, UK and New York, NY, USA and the International Institute for Applied Systems

Analysis, Laxenburg, Austria, pp. 1401-1458.

Policy Scenarios for Achieving Universal Modern Energy Access by 2030

Dr. Shonali Pachauri (Energy Program, IIASA; Vienna, Austria) Yu Nagai (Energy Program, IIASA; Vienna, Austria

Technische Universität Wien; Vienna, Austria)

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