Improving households’ access to electricity and energy consumption pattern in Nigeria: Renewable energy alternative

Access to substantial quantity and quality energy infrastructures is essential to rapid and sustainable economic development. Access to modern energy services directly contributes to economic growth and poverty reduction through the creation of wealth. No country can develop and sustain beyond subsistence means without having at least minimum access to energy services for the larger portion of its population. The present study examines the households’ access to modern energy (electricity) services and pattern of energy consumption in Nigeria. It was found that the access to modern form of energy in the country is very low despite the country's abundant energy endowment. Greater proportions (over 40%) of Nigerian households do not have access to electricity and still depend largely on traditional forms of energy (e.g., firewood, kerosene, etc.) as energy sources. However, Nigeria is abundantly endowed with renewable energy resources. This can be significantly developed to generate modern and clean electricity to meet the yearning demand of its citizens without imposing serious hazard on the environment.     

The energy sector in Eritrea—institutional and policy options for improving rural energy services

The energy consumption patterns and in particular, those of the rural household and small and medium enterprises (SMEs) in Eritrea are assessed. Eritrea's total final energy consumption in 1998 was estimated to be around 619,580 toe, of which 68% was consumed by the household sector, 16% by the commercial/public sector, 13% by transport and 3% by industry. The sources of energy were 66.3% biomass based (fuelwood, dung, charcoal, agri-residue), 31% oil products and 2% electricity. It is also noted that 98% of the rural population and 20% of the urban residents do not have access to electricity. Over 80% of the energy needs of rural enterprises is met by biomass or animate/human labour. To analyse the root problems hindering the wider dissemination of modern energy services to rural areas, two key hypotheses related to policy and institutional framework were selected and tested. The findings indicate that Eritrea has general energy policies pertaining to the development of electricity, oil and renewable energy sub-sectors for the benefit of the public and the economy. The absence of sharply focussed, pro-rural energy policy and/or their policy instruments has been observed. The key problem is, however, the weakness in implementation of rural energy projects and programmes. This is mainly due to inappropriate institutional structure and/or gaps in the structure, in addition to lack of corporate culture; poor incentives for workers; and, poor linkages among the various stakeholders concerned in energy for rural development.     

Renewable energy strategies for rural Africa: is a PV-led renewable energy strategy the right approach for providing modern energy to the rural poor of sub-Saharan Africa?

Rural areas continue to be home to majority of the population in Africa. The importance of providing modern energy to rural areas cannot, therefore, be overemphasised. Despite numerous efforts by Governments and donors in the region to promote solar photovoltaics (PVs) for rural electrification (almost every country in the region has had a rural electrification PV project), access to modern energy in rural Africa continues to be woefully low. In addition to being unaffordable to the rural masses, solar PV has the limitation that it can only be used for lighting and powering low-voltage appliances. This article reviews emerging trends in the rural energy sector of sub-Saharan Africa, and discusses the limitations of over-reliance on solar PV. It suggests possible options that could have greater impact on rural clean energy development. For the majority of rural households in the region, biomass fuels will continue to be the dominant fuel of choice. Efficient technologies for the use of biomass would, therefore, ensure that scarce biomass resources are effectively utilised, and reduce the negative impacts of biomass use on women and children's health. Solar thermal, windpumps, micro-/pico-hydropower and cleaner fuels such as kerosene and LPG, have not received adequate attention from policy makers. These energy options could significantly improve the performance of rural small- and micro-enterprises. This article argues that rural energy policies that emphasise a broader range of renewables and target income-generating activities are likely to yield greater benefits to the rural poor than the current policies that rely on the solar PV option.     

Renewable energy policy evaluation using real option model — The case of Taiwan

This study presents a policy benefit evaluation model that integrates cost efficiency curve information on renewable power generation technologies into real options analysis (ROA) methods. The proposed model evaluates quantitatively the policy value provided by developing renewable energy (RE) in the face of uncertain fossil fuel prices and RE policy-related factors. The economic intuition underlying the policy-making process is elucidated, while empirical analysis illustrates the option value embedded in the current development policy in Taiwan for wind power. In addition to revealing the benefits that RE development provides when considering real options, analytical results indicate that ROA is a highly effective means of quantifying how policy planning uncertainty including managerial flexibility influences RE development. In addition to assessing the policy value of current RE development policy, this study also compares policy values in terms of internalized external costs and varying feed-in tariff (FIT). Simulation results demonstrate that the RE development policy with internalized CO₂ emission costs is appropriate policy planning from sustainability point of view. Furthermore, relationship between varying FIT and policy values can be shown quantitatively and appropriate FIT level could be determined accordingly.     

Driving forces for and barriers to providing energy services—a study of local and regional energy companies in Sweden

Improving energy efficiency is a cornerstone in climate change mitigation, and energy services are portrayed as a promising market-based approach to achieve this. This paper examines the barriers to, and driving forces needed for, the implementation of energy services from the perspective of Swedish local and regional energy companies. This includes an analysis of the resources needed in three phases of energy service implementation, i.e., development, sales, and deployment. The results indicate a supply-side interest in providing energy services, with the major challenges being related to (a) intra-organizational issues such as a lack of strategic direction and intent and (b) a perceived lack of knowledge, interest, and trust on the part of potential energy service customers. The paper concludes with managerial and policy implications on how an increased focus and impact of energy service can be achieved among local and regional companies.     

The role of coal in energy policy and sustainable development of Turkey: Is it compatible to the EU energy policy?

This paper aims to assess the current and future role of coal in energy strategy of Turkey, and evaluates the compatibility of policies to the EU energy policy and strategy. Coal is regarded as the most important indigenous energy source in Turkey together with hydropower to strengthen the supply security of the country. Turkish government set targets to fully utilize coal reserves of the country in next decades. However, the country is also in the process of becoming an EU Member State, hence, it is expected that the energy policies have to comply with the EU. Moreover, Turkey ratified Kyoto Protocol in 2009, thus the country should limit CO₂ emission together with other greenhouse gases. The probable obstacles that Turkey may face due to the utilization of coal were determined as CO₂ emissions, lack of technology and application in Carbon Capture and Storage (CCS) and health and safety issues. It is concluded that coal is a very important domestic energy source for Turkey but new policies have to be developed and adopted immediately, and more realistic targets for the country should be set accordingly.     

Drivers and barriers to rural electrification in Tanzania and Mozambique – Grid-extension,off-grid,and renewable energy technologies

Mozambique and Tanzania are countries with very low rural electrification (RE) rates as only about 5% of the rural population use electricity. Despite efforts to extend the national grid in rural areas, most remote areas will not be reached within the foreseeable future. Off-grid (decentralized) electricity grids are seen as a complement and forerunner to the national grid, making electricity available many years in advance and creating demand and a customer base. Renewable energy sources are plentiful in the region and may be particularly useful for off-grid systems. The countries' power sectors are undergoing interesting changes with potential to speed up the pace of RE. However, there are significant barriers to effective RE by grid-extension and off-grid installations.In this study, the specific drivers and barriers for RE in Mozambique and Tanzania are explored across a spectrum of involved actors. By qualitative methodology, drivers and barriers were first identified through literature survey, then data was collected both in semi-structured interviews carried out with power sector actors from national to local level and in visits to off-grid electricity users in Tanzania and Mozambique during eight weeks in 2010. Findings illustrate generic, country-specific, and renewable-energy-technology-specific drivers and barriers to grid and off-grid rural electrification, as perceived by different power sector actors. Results were validated and discussed with three external specialists. Drivers and barriers strongly relate to the roles of national and local actors in planning and implementation. The main drivers are political ambitions based on expected growth of demand, but bottom-up drivers such as local initiatives by industries or churches also exist. The barriers are related to lack of access to human capital, to difficulties in planning and donor dependency, to low rural markets and little interest from private sector, and to more straightforward technical matters such as difficulties with installing electric equipment in traditional buildings. Although off-grid systems and renewable energy sources are recognized by the actors, specific barriers to these systems are related to young organizations responsible for implementation and to guilt-by-association with dysfunctional diesel-based off-grid systems.     

Building energy index and end-use energy analysis in large-scale hospitals—case study in Malaysia

Hospital energy consumption is relatively high, while saving energy and reducing cost comprise one of the most important challenges considered by the majority of building designers, engineers, and decision makers. An end-use energy analysis was conducted in a large-scale hospital in Malaysia to identify energy apportioning and energy end use in the areas of air conditioning, lifts, lighting, equipment, and others. The analysis was carried out by assessing the collected desktop and field data as well as some calculations. The Building Energy Index (BEI) was calculated to compare the consumption levels in the selected hospital, which is a typical hospital building, with other hospitals in Malaysia as well as low energy buildings and Malaysian standards. The main energy source in this case study was electricity with a supply of around 75 % of total energy consumption. The current average annual electricity consumed by this hospital was 44,637,966 kWh, out of which 63 % was used by air conditioning systems and 17 % by lighting. The BEI comparison revealed that the calculated BEI of 384 kWh/m²/year is significantly higher than Malaysian rating systems and standards which recommend 200 kWh/m²/year for hospitals, 135 kWh/m²/year for commercial sectors, and is higher than previously observed hospitals with a BEI of less than 300 kWh/m²/year.     

A network analysis using metadata to investigate innovation in clean-tech – Implications for energy policy

Clean-technology (clean-tech) is a large and increasing sector. Research and development (R&D) is the lifeline of the industry and innovation is fostered by a plethora of high-tech start-ups and small and medium-sized enterprises (SMEs). Any empirical-based attempt to detect the pattern of technological innovation in the industry is challenging. This paper proposes an investigation of innovation in clean-tech using metadata provided by CrunchBase. Metadata reveal information on markets, products, services and technologies driving innovation in the clean-tech industry worldwide and for San Francisco, the leader in clean-tech innovation with more than two hundred specialised companies. A network analysis using metadata is the employed methodology and the main metrics of the resulting networks are discussed from an economic point of view. The purpose of the paper is to understand specifically specializations and technological complementarities underlying innovative companies, detect emerging industrial clusters at the global and local/metropolitan level and, finally, suggest a way to realize whether observed start-ups, SMEs and clusters follow a technological path of complementary innovation and market opportunity or, instead, present a risk of lock-in. The discussion of the results of the network analysis shows interesting implications for energy policy, particularly useful from an operational point of view.     

Exploring drivers of energy demand in Cyprus – Scenarios and policy options

This paper describes a new set of energy demand forecasts for the Republic of Cyprus up to the year 2040, which have been developed in support of the renewable energy roadmap that was prepared for national authorities by the International Renewable Energy Agency. The analysis takes into account national end-use data from the residential and tertiary sector that had not been exploited up to now. Four final energy demand scenarios with diverging assumptions were defined in this study, offering a wide range of possible outcomes up to 2040; in addition, four alternative scenarios were applied for sensitivity analysis. Two of these scenarios can be regarded as those continuing the trends of the recent past in Cyprus (prior to the economic and financial downturn of years 2011–2014). However, a more rigorous implementation of energy efficiency measures in buildings and transport, as defined in the fourth scenario of this study, is also realistic; despite its potential costs, it might allow Cyprus both to decrease its carbon emissions in line with the long-term EU decarbonisation targets, and to reduce its dependence on fossil fuels, thereby promoting energy efficiency as an important climate change adaptation measure.     

Economic growth,urbanization and energy consumption — A provincial level analysis of China

As the largest developing country, with fast-paced economic growth, China's development has been characterized by a high degree of energy consumption, high level of heavy industry, international trade and urbanization progress. In this study, we extend the current literature by incorporating urbanization, energy consumption and international trade into a production function using a panel data set model over the period from 2001 to 2012. The results show that urbanization and capital are the major contributors to China's economic growth. Meanwhile, there exists a “U-shaped” relationship between urbanization and economic growth; that heavy industry exerts a significant negative effect on economic growth using system generalized methods of moments (GMM-sys) estimation methods; and the relationship between international trade and economic growth is mixed and no consistent results support the conclusion that the international trade promotes economic growth. Adjusting the industry and trade structure in economic growth is the priority for the policy makers.     

Is there a role for biofuels in promoting energy self sufficiency and security? A CGE analysis of biofuel policy in Thailand

Given the rising price of crude oil, some developing countries including Thailand are looking towards developing their domestic renewable energy resources, in particular biofuels. However, there are concerns about the possible adverse effects such a policy strategy would have on key variables such as sectoral output, land allocation and the effects of prices, particularly food prices. This study develops a computable general equilibrium (CGE) model of the Thailand economy that features enhancements of the energy sector and uses it to analyze the government’s recent renewable energy development plan. This plan aims to increase domestic energy use from renewable sources to replace fossil fuel imports. The study simulated specific policies contained in the plan. Among other things, we found that promoting biofuel use causes a rapid increase in the price of biofuel and biofuel feedstock in the short-run, whereas these prices only increase slightly in the long-run due to more elastic supplies. The prices of food and other products marginally increase, implying that food security is not undermined by the policy. On the basis of the findings, the study recommends a review of some of the targets because they were found to be rather high, and a phasing in of others.     

Process analysis of becoming committed to energy conservation—A path analytic approach

Conserving energy is one of the most important factors in efforts to be independent of oil shocks and embargos. An understanding of the process of transforming an extravagant user of energy into a very prudent user of energy is very essential in planning our strategies to achieve the targeted goal of conservation. This paper deals with the process analysis of that transformation to commit oneself to conserving energy. The technique of path analysis has been used in the present study. The prime factor studied in this paper is “awareness of need for energy conservation” as a promotional factor.     

German and Norwegian policy approach to residential buildings’ energy efficiency—a comparative assessment

Buildings in private and domestic use are responsible for about 30% of the global greenhouse gas emissions attributable mainly to their need for heating and cooling energy. This corresponds to about 40% of the global final energy consumption. Therefore, a viable implementation of building energy efficiency policies is inevitable to realize a transformation of the energy system to mitigate climate change. Within the building sector lies a huge potential for emission reduction consisting in the renovation of the existing building stock and climate-friendly building guidelines applicable to new constructions, both adapting CO₂-neutral technology solutions. However, as there are several different pathways leading to a decarbonized energy system, there is always the question which political and technological solutions are most efficient, effective, and feasible. This paper aims to analyze building efficiency policy measures and instruments and the related technological solutions in two front-runner countries of the energy transition, possessing different structural conditions: Germany and Norway. We hence apply a comparative approach which allows us to present and assess the policies in place. The paper answers three research questions: (1) Which policies prevail in Germany and Norway to foster the deployment of energy efficient and decarbonized solutions for residential buildings? (2) How do these policies respond to country-specific barriers to the energy transition in the building sector, and (3) What effects do they have on the actual implementation of technological and societal solutions? This research provides a new insight to the highly relevant topic of energy efficiency in buildings in the context of international Intended Nationally Determined Contribution benchmarking and discusses some unsolved trade-offs in the translation of the global climate governance into the national building sector.     

LMDI decomposition analysis of energy consumption in Andalusia (Spain) during 2003–2012: the energy efficiency policy implications

The aim of this paper is to analyse the changes in final energy consumption in Andalusia through logarithmic mean Divisia index (LMDI) decomposition analysis during the period 2003–2012. The results lead us to conclude that a reduction of final energy (FE) consumption of 1 % took place as a result of a diminishing in structural effect by 11 % and an increase in the activity effect and intensity effect by 7.4 and 3.5 %, respectively. Chain-linked LMDI decomposition shows the existence of two sub-periods, with a turning point in 2008. The first period, coinciding to a great extent with the Andalusian Energy Plan 2003–2006 (PLEAN), showed an increase in final energy consumption, mostly due to the activity effect but also to the intensity effect. The second period, coinciding with the implementation of the Andalusian Sustainable Energy Plan 2007–2013 (PASENER), shows a reduction in the activity, structure and intensity effects. The results allow us to conclude that many of the energy efficiency measures, implemented through the PASENER, are related to sectors that experienced a decline in energy consumption due to the intensity effect, such as transport, primary and service sectors. Additionally, although they were included in PASENER, more policy attention should be given to the energy transformation, residential and industrial sectors which increased the demand for energy due to the intensity effect during this period. Finally, the energy-saving behaviour of economic agents due to the economic downturn should also be considered as an explanation for the diminishing in energy consumption during this sub-period.     

What lessons have been learned in reforming the Renewables Obligation? An analysis of internal and external failures in UK renewable energy policy

Despite operating a delivery programme for RES-E since 1990, UK targets and policy goals have not been achieved. In response, the Government reformed the RO. This article re-examines UK renewable energy policy by analysing the internal and external failures of the various mechanisms to determine if Government has learnt from previous experience in reforming the RO. Government did not learn from their own actions during the NFFO/RO transition, evidenced by high-levels of similarity in internal/external failures. The reformed-RO is expected to significantly increase deployment, has provided a ‘renewables package’ by comprehensively addressing both internal/external failures but major internal failures (price/financial risk) still remain, resulting in contiguous failures over two decades and two mechanism changes (NFFO, RO, RO/reformed-RO). Success will again be heavily dependent on a select few technologies and new/untested measures to combat external failures. Mechanism-extension to 2037 is probably the single most important factor underlying potential deployment increases. However, introducing a FIT-like system via the sheer number of ‘bolt-on’ reforms to counter policy failures indicates loss of direction and clarity. Overall, although Government appears to have learnt some of its lessons from the past two-decades, significant doubt remains whether renewable energy policy objectives will be met via the latest mechanism change.     

Why have greenhouse emissions in RGGI states declined? An econometric attribution to economic,energy market,and policy factors

The Regional Greenhouse Gas Initiative (RGGI) is a consortium of northeastern U.S. states that limit carbon dioxide emissions from electricity generation through a regional emissions trading program. Since RGGI started in 2009, regional emissions have sharply dropped. We use econometric models to quantify the emissions reductions due to RGGI and those due to other factors such as the recession, complementary environmental programs, and lowered natural gas prices. The analysis shows that after the introduction of RGGI in 2009 the region's emissions would have been 24% higher without the program, accounting for about half of the region's emissions reductions during that time, which were far greater than those achieved in the rest of the United States.     

Economic assessment of virtual power plants in the German energy market — A scenario-based and model-supported analysis

The energy transition (“Energiewende”) in Germany will result in a substantial transformation of the energy supply system. Virtual power plants are expected to be important components of the new intelligent energy infrastructure. They aggregate beside different types of distributed generation units also active consumers and storage technologies in order to integrate these in a profit-maximising, system-stabilising, and sustainable way. The assessment of the economic performance of virtual power plants requires a scenario-based and model-supported analysis. In this relation, future energy market conditions are simulated using the scenario methodology. Starting from the year 2015, three scenarios have been identified that illustrate alternative energy developments in Germany by 2030. Based on these scenarios, the additional revenues potential of the modeled virtual power plant is identified when compared to an independent and non-market-oriented operation mode of distributed energy resources. According to the model results, revenues of the VPP can increase by 11% up to 30% in the analyzed scenarios in 2030 due to the market-oriented operation mode. Nevertheless, the amount and composition vary depending on technology-specific subsidies, temporary nature of power demand and price structures in the energy market. Fluctuating renewable energies are expected to benefit from the market-oriented operation mode in the virtual power plant, especially through the EEG direct marketing. The selective and regulated shutdown of renewable energies in times of negative electricity prices may lead to further cost savings. The utilization of temporary price fluctuations in the spot market and the demand-oriented provision of control power offer high additional revenue potential for flexible controllable technologies such as battery storage, biomethane as well as combined heat and power units. Finally, the determination of the long-term profitability of a virtual power plant still requires a full-scale cost–benefit analysis. For this holistic approach, the model results provide a reliable scientific basis.     

Handling uncertainty in bioenergy policy design – A case study analysis of UK and German bioelectricity policy instruments

In designing policies to promote bioenergy, policy makers face challenges concerning uncertainties about the sustainability of bioenergy pathways (including greenhouse gas balances), technology and resource costs, or future energy market framework conditions. New information becomes available with time, but policy adjustments can involve high levels of adaptation costs. To enable an effective steering of technology choices and innovation, policies have to strike a balance between creating a consistent institutional framework, which establishes planning security for investors, and sufficient flexibility to adapt to new information. This paper examines implications of economic theory for handling cost and benefit uncertainty in bioelectricity policy design, focussing on choices between price and quantity instruments, technology differentiation, and policy adjustment. Findings are applied to two case studies, the UK's Renewables Obligation and the German feed-in tariff/feed-in premium scheme. Case study results show the trade-offs that are involved in instrument choice and design – depending on political priorities and a country's specific context, different options can prove more adequate. Combining market-based remuneration with sustainability criteria results in strong incentives for bioenergy producers to search for low-cost solutions; whereas cost-based price instruments with centrally steered technology and feedstock choices offer higher planning security for investors and more direct control for policy makers over what pathways are implemented. Independent of the choice of instrument type and technology differentiation mechanism, findings emphasise the importance of a careful policy design, which determines the exact balance between performance criteria such as cost control, incentive intensity, planning security and adaptive efficiency.