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Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development Dr David Ockwell, Dr Rob Byrne, Prof Kevin Urama February 2014 [email protected]
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Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

May 11, 2015

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STEPS Centre

David Ockwell and Robert Byrne (University of Sussex/ STEPS Centre) gave this presentation at King's College London on 25 February 2014 as part of the Environment, Politics and Development Research Group seminar series.

Despite the potential development benefits of low carbon energy technologies, existing international policy has failed to deliver against the needs of low income countries or poor and marginalised people therein. This seminar presents (and seeks feedback on) preliminary findings from a CDKN-funded project on off-grid solar electrical services in Kenya (see http://steps-centre.org/project/low_carbon_development/ ). Utilising the STEPS Centre’s Pathways Approach, it is argued that the failure of existing policy stems from its tendency to frame low carbon development as a problem of financing low carbon hardware transfer to developing countries. Alternative conceptual framings, building on insights from innovation studies and socio-technical transitions, applied to in-depth historical analysis of the successful adoption of off-grid solar in Kenya, suggest neither hardware financing policies nor the free market are likely to result in widespread uptake of low carbon energy technologies amongst poor countries and poor people therein. Instead, interventions should seek to act as “innovation system builders” with an explicit focus on building inclusive innovation systems via a range of specific capacity building approaches.

Dr David Ockwell is a Senior Lecturer in the Dept of Geography at the University of Sussex and co-convenes the STEPS Centre’s energy and climate domain. He’s also affiliated to the Sussex Energy Group and the Tyndall Centre. David’s research focuses on low carbon development with particular recent emphasis on the implications of international policy in terms of poverty and social justice.


Dr Rob Byrne is a Research Fellow in SPRU (Science and Technology Policy Research) at the University of Sussex. He co-convenes the STEPS Centre’s energy and climate domain with David and is also affiliated to the Sussex Energy Group and the Tyndall Centre. Rob’s research focuses on low carbon development with a particular empirical focus on off-grid solar electrical services in East Africa where he has worked both as a practitioner installing solar home systems as well as conducting academic research on this issue
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Page 1: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Sustainable energy for whom?

Governing pro-poor pathways to low carbon energy for development

Dr David Ockwell, Dr Rob Byrne, Prof Kevin Urama

February 2014 [email protected]

Page 2: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

www.steps-centre.org/project/low_carbon_development

Page 3: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

3

Page 4: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Overview

1. Pathways to low carbon development (Stirling 2012) 2. Dominant framing: Hardware financing 3. Alternative 1: Building innovation capacities 4. Alternative 2: Socio-technical nature of change & development 5. Our Kenya study 6. Implications for policy and research

Page 5: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Multiple Pathways to “Low Carbon Development” - What? For who? How?

Page 6: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Multiple Pathways to “Low Carbon Development” - What? For who? How? - Multiple configurations of energy services, access, behaviour, technologies….

Page 7: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Intended and unintended processes and power ‘close down’ pathways

Social expectations, cultural norms

Page 8: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Intended and unintended processes and power ‘close down’ pathways

Historical contingency: Path dependence

Page 9: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Intended and unintended processes and power ‘close down’ pathways

Politics: Interests, power – who frames the problem?

Page 10: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Intended and unintended processes and power ‘close down’ pathways

Economics: Lock-in to inferior technologies – even in competitive markets

Page 11: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Dominant framing: Hardware financing

Hardware financing policies

e.g. CDM

Internalise positive externalities

(carbon mitigation) to cover additional cost of low carbon

technologies

Page 12: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Africa 3%

China 60%

India 11%

Mexico 3%

Brazil 6%

ROW 17%

CDM USD pc (2014)

CO2 tpc

(2010)

USD pt CO2

China 154 6.15 25

Mexico 104 3.86 27

Brazil 100 2.13 47

India 31 1.62 19

Africa 10 1.09 9

Key ROW: Rest of the World

Sources: Authors, based on analysis of the CDM pipeline; World Development Indicators; http://www.nationsonline.org/oneworld/world_population.htm

Accumulated investment through the CDM in countries and regions as at end of January 2014 (http://www.cdmpipeline.org)

Page 13: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

0

5

10

15

20

25

30

35

40

45

50

Brazil Mexico China India Africa

CDM project investment per tonne CO2 emissions

Source: Authors, based on analysis of the CDM pipeline

Page 14: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

54 19

14 6

2 2

17 13

10 5

4 4

3 3

2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 1 1

South Africa Egypt

Morocco Tunisia Algeria

Libya Kenya

Uganda Nigeria

Côte d'Ivoire Rwanda Senegal

Madagascar Tanzania

Cameroon Congo DR

Ethiopia Mauritius

Zambia Ghana

Mozambique Sudan

Lesotho Namibia

Zimbabwe Namibia

Cape Verde Liberia

Mali Niger

Sierra Leone

CDM registered projects per country for Africa

Source: Authors, based on analysis of the CDM pipeline

Page 15: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

1 1 3 8 10 15 16 22 22 28 33 42 43 61 84 84 93 96 104

305 354 356

632 632

2012 2355

Agriculture Tidal

CO2 usage Mixed renewables

Afforestation Energy distribution

EE service Cement

HFCs Transport

Geothermal Reforestation

Fugitive EE supply side

Coal bed/mine methane EE households

EE industry Fossil fuel switch

N2O EE own generation

Solar Landfill gas

Biomass energy Methane avoidance

Hydro Wind

Source: Authors, based on analysis of the CDM pipeline

• 90% registered CDM projects use seven types of technology

• Only two new renewable energy technologies (although wind is mature relative to other new renewables)

• Solar about 5% of portfolio

Number of registered CDM projects as at end of January 2014, by project type (7412 total registered projects) (http://www.cdmpipeline.org)

Page 16: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Building innovation capacities

Technology suppliers

Technology importers

Technology transferred

Supplier firms’

engineering, managerial and other

technological capabilities

Capital goods, services & designs

Skills & know-how for operation &

maintenance

Knowledge & expertise behind

technology

Accumulation of innovation capacities

New production capacity

Flow A

Flow B

Flow C

Page 17: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Building innovation systems

Indigenous support for technological capabilities

National Innovation System

Skills & know-how for operation &

maintenance

Accumulation of innovation capacity

Knowledge & expertise behind technology

Technology transfer

New production capacity Capital goods, services

& designs

Page 18: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Africa 3%

China 60%

India 11%

Mexico 3%

Brazil 6%

ROW 17%

CDM USD

pc (2014)

CO2 tpc

(2010)

Ratio: USD / tCO2

China 154 6.15 25

Mexico 104 3.86 27

Brazil 100 2.13 47

India 31 1.62 19

Africa 10 1.09 9

Key ROW: Rest of the World

Sources: Authors, based on analysis of the CDM pipeline; World Development Indicators; http://www.nationsonline.org/oneworld/world_population.htm

Accumulated investment through the CDM in countries and regions as at end of January 2014 (http://www.cdmpipeline.org)

Page 19: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Socio-technical nature of change &

development

Page 20: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Socio-technical nature of change &

development

Page 21: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Socio-technical nature of change &

development

Page 22: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Research questions

Case study: • PV based electrical services in Kenya • Per capita = most successful global market for off-grid PV

Source: Ondraczek, J. (2013) “The sun rises in the east (of Africa): A comparison of the development and status of solar energy markets in Kenya and Tanzania”, Energy Policy 56: 409

Page 23: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Research questions

Case study: • PV based electrical services in Kenya • Per capita = most successful global market for off-grid PV

Research questions: What factors can explain the success of the off-grid PV market in

Kenya? • What role has hardware financing played? • What technological capacity building activities can be identified? • Can “innovation system builders” be identified? • How can this inform policy (especially Climate Innovation Centres)?

Page 24: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Methodology

• In-depth historical analysis • Innovation Histories Method (Douthwaite & Ashby 2005) • Stakeholder workshop & in-depth interviews • Detailed timeline of PV market development • Interrogation against research questions

Page 25: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Snap shot of time line

Date Description Others involved Significance Documents Elaborations

1978 (Henry Watitwa)

Brother used dry cell with wires to light a spot light bulb in our room

Friends and other brothers

For fun – indicates interest in, and awareness of, electricity (power was only in selected houses in town, institutions and Government buildings)

Personal memory motivation

There was no solar.

August 1982 (Enos Orongo)

Failed Coup Contextual event Stimulated Government directive to increase TV network country wide

Possible press reports?

Page 26: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Summary of Kenyan PV market evolution

• Over 300,000 SHSs in Kenya now • Birth of market in mid-1980s • From 1990s, Energy Alternatives Africa managed many projects

– Donor-funded, multi-stakeholder market and technology RD&D

– Articulated market demand and supply chain

– Some technology development success

– Lighting Africa built on this, other players now in the market • Chinese interest in PV manufacture failed but Dutch-Kenyan joint venture

now in Naivasha • Climate Innovation Centre underway

Page 27: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

PVMTI vs LA: An illustration from solar in Kenya

Page 28: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Lighting Africa:

Building indigenous technological capacities & innovation systems

Different framings

CDM:

Funding for one-off, international hardware investments

Page 29: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Lighting Africa:

Poor countries, poor people

Different framings: Different distribution of benefits

CDM:

Private investors,

China, India, Brazil

Page 30: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Different framings: Different distribution of benefits

Page 31: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Conclusion: Pro-poor pathways to low carbon development?

www.steps-centre.org/project/low_carbon_development

Page 32: Sustainable energy for whom? Governing pro-poor pathways to low carbon energy for development

Policy recommendations j

www.steps-centre.org/project/low_carbon_development

1. Market forces will not deliver on their own. 2. Policy must foster capacities by:

• Building networks that link diverse stakeholders

• Conducting market & technological research & monitoring, making results publicly available

• Raising awareness among consumers & investors to reduce perceived risks & build shared visions

• Fund experimental initiatives (e.g. new stakeholder configurations to test new technologies and approaches)

3. National institutions like Climate Innovation Centres could achieve this, but must be designed to do so. They should link across countries to learn lessons and share best practice.