Renewing poverty strategies: the potential of renewable
energy to fight poverty in rural Ethiopia
Interdisciplinary Project – Future Planet Studies Astrid Ruiter & Annelies Huygen
University of Amsterdam 12th of December 2016 Rosa van Schaick – 10801634 Chanti van der Kust – 10766146 Caspar Klos – 10421912
Koen Zijlstra – 10741615
Didier Snellen van Vollenhoven – 10574328
Ethiopia, 87,3% of the population lives in poverty and only 10% of the rural population has access to electricity. This deprivation, amongst other, forms a barrier to poverty reduction. Renewable energy sources have shown to affect the economic growth and stimulate sustainable development if accessible. This paper aims to examine the relationship between renewable energy and poverty reduction in rural areas of Ethiopia. Renewable rural electrification may be most effective in doing so as it can reach isolated areas and enables energy independence. In terms of technical opportunities for rural electrification a hybrid system containing hydro, photovoltaic and wind energy together with a battery and generator will show to have the most potential. Additionally to regarding technical opportunities, the organizational structure to implement RE in Ethiopia will be addressed. By assuming the implementation of RE is effective, the relationship between energy access, health care, education and gender roles on a household level will be elaborated on to provide insight into the contribution of renewable energy on poverty reduction.
Introduction 4
Theoretical Framework 5
Rural electrification 5
Renewable energy 5
Poverty and the Multidimensional Poverty Index 5
The importance of rural electrification 6
Methodology 7
Part 1. The potential for renewable energy in rural Ethiopia 8 1.1 Technical options for renewable energy in rural Ethiopia 8
Hybrid systems 8
Small-scale stand-alone photovoltaic systems 10 1.2 The organizational structure of rural electrification in Ethiopia 10
Effective planning 11
Technical support 11
Local involvement 11
Part 2. Renewable energy and its effect on development and poverty 13
2.1 Health care 13
2.2 Education 14
2.3 Gender roles 15
Discussion 17
Technical and organizational research 17
Energy dependency 17
Conclusion 18
Introduction
The lack of electricity access in rural areas is considered one of the most important factors contributing to rural poverty (Barnes, 2011). Ethiopia is one of many countries in which this deprivation is visible. According to the multidimensional poverty index 87,3% of the Ethiopian population lives in poverty, with even higher rates of poverty in rural areas. The
multidimensional poverty index uses three different dimensions, health, education and living standards as a means to measure poverty rates (Oxford Poverty and Human Development initiative, 2013). Electricity access is a weighted indicator taken into account when measuring poverty. In Ethiopia most rural households are deprived of electricity as only 10% of the rural population has access to it (IEA, 2015).
Ethiopia has a total electricity availability that is lower than 16% and approximately 85% of its population lives in regions where access to electricity is less than 2%. Additionally, Ethiopia is experiencing a distinct gap between electricity accessibility between urban and rural regions. Urban regions often have more access to electricity grids while rural regions are confronted with energy scarcity, as power grids have not yet been made available or expanded into rural Ethiopia (Bekele & Tadesse, 2012). Renewable energy sources can potentially help facilitate the process of providing electricity access to rural region of Ethiopia, more often referred to as rural
electrification. Renewable rural electrification encompasses beneficial factors that include the provision of local resources to remote and rural communities, lessens the environmental burden and enhances energy independence (Perreira et al., 2010; Mboumboue & Njomo, 2016). Also, it is argued that modern renewable energy sources may also be effective in increasing economic growth and stimulate sustainable development, which may in turn contribute to poverty alleviation in rural areas (Mboumboue et al., 2016). Therefore, this interdisciplinary research aim is to evaluate how renewable energy contributed to poverty alleviation in rural Ethiopia. To illustrate the possible opportunities rural electrification and the renewable energy sources bring to the rural population in Ethiopia, the “Solar lighting in Rural Ethiopia” project set up by MyClimate in 2013 is used. The non-profit organisation provided many rural households with solar energy induced electricity. The project’s aim was to reduce greenhouse gas emissions in households while creating household opportunities for education and job vacancies. The solar home systems consist of led-lamps and solar panels that provide electricity during day and night, making more household activities possible. Through the provision of electricity to the rural Ethiopian population stimulates the social and economic progress of the people living in Ethiopia. This project shows that electrification creates possibilities that may provide the population with developmental progress by, for example, enhancing educational opportunities, which are part of the multidimensional poverty index.
This paper will elaborate on the processes behind creating electrification opportunities as the MyClimate project. Through the use of interdisciplinary research this paper aims to answer the following question: “How does renewable energy contribute to poverty alleviation in rural
Ethiopia?”. This will be done by examining theories and concepts essential to the evaluation of
rural electrification and poverty reduction. This information will first be used to elaborate on the possible renewable energy techniques in Ethiopia and the organizational structure that is needed for implementation. Secondly, the relation between energy provision and education, health and gender roles will be clarified in order to regard the possibilities for poverty reduction in rural Ethiopia.
Theoretical Framework
Several concepts and relations underlie the alleviation of poverty through renewable energy. Before the research can be conducted, it is important to elaborate on these concepts to provide a better understanding of the topic. The theoretical framework will describe the relationship between renewable energy and rural electrification, and how this might eventually lead to poverty alleviation.
Rural electrification
The concept of rural electrification is central to the nexus between renewable energy and poverty and therefore forms an important focus of this research. Rural electrification refers to the process by which access to electricity is provided to rural households, often located in isolated or remote areas. There is a distinct gap between the availability of electricity in urban and rural regions, as rural regions are often situated at a long distance from national or regional electricity grids (Niez, 2010). In Ethiopia, a mere 10% of the rural population currently has access to electricity (IEA, 2015). This lack of electricity access in rural areas is often considered to be an important factor behind rural poverty (e.g. Barnes, 2011 & Pereira et al., 2010).
Renewable energy
Renewable energy can play an important role in achieving rural electrification. Challenges that are related to rural electrification include the high transmission and distribution costs of extending the grid to remote areas and the very low electricity demand of rural households (Mandelli et al., 2016). Mboumboue & Njomo (2016) consider the decentralised character of renewable energy to be ideally suited to overcome these infrastructural challenges. Furthermore, Pereira et al. (2010) also recognize the potential of renewable energy in meeting these
challenges, naming as advantages the possibility of providing local resources to remote communities, guarantee of supply, lower environmental impacts and energy independence. It can thus be concluded that areas most often deprived of electricity access and with the highest incidence of poverty, namely rural areas, can profit from the characteristics of renewable energy systems in changing those circumstances.
Poverty and the Multidimensional Poverty Index
Both the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) have as their main objective to end poverty in all its manifestations. The SDGs are an extension of the MDGs to be reached in 2030 and were set up to achieve sustainable development and target the multidimensional aspects that can contribute to the reduction of poverty (UNDP, 2016). Poverty is generally measured through income. However, the MDGs argue that poverty is more complicated and should be managed as such (Alkire & Santos, 2010).
The Multidimensional Poverty Index (MPI) measures poverty regarding the guidelines created by the MDGs and is a means of measuring poverty through a set of multiple indicators and is complementary to the income measure (Alkire et al., 2010). Three dimensions have been identified through which the MPI can be measured: education, health and living standards. A country is in multidimensional poverty when at least 33% of the indicators reflect acute deprivation in health, education and living standards. The MPI can be explained with the use of the subsequent figure (figure 1). Poverty is measured through the intensity and extent of indicators within each dimension that people are deprived of (OPHI, 2016).
Ethiopia illustrates differences in poverty rates when measured with the MPI instead of through income. Measuring through income, it experienced a decline of approximately 30% over the past decade. However, when measured with the MPI, 87,3% of the Ethiopian population is still considered poor (The World Bank, 2015; OPHI, 2013). The Ethiopian MPI-report shows that rural areas experience the highest rates of poverty, in which people are especially deprived of cooking fuel and electricity (OPHI, 2013).
The importance of rural electrification
The different dimensions of the index are closely interconnected, which induces the United Nations and the MDGs to stimulate renewable energy for sustainable development. Access to household electricity is believed to stimulate the reduction of poverty (UN Millennium Project, 2005). Also, when the MDGs were expanded into the SDGs in 2015, accessibility to modern reliable and sustainable energy was included as a development goal. Energy and electricity are not always seen as an end but more often as a means: it should be integrated with other economic activities, which enable local people to enhance their socioeconomic status.
Considering rural electrification in Ethiopia, the importance of women is emphasized, as they are the primary energy providers (Habtezion, 2012).
Both the Millennium Development Goals and the Sustainable Development Goals include education, health and gender roles in their evaluation and targets. As Alkire et al (2010) shows, the Multidimensional Poverty Index is inspired by the development goals and tries to use them as indicators of poverty. It is also argued that one indicator may influence another or provide stimulation and guidance in achieving a certain right and goals. The access to electricity might by a means to achieve better health, education and living standards, specifically gender roles (Cabraal, Barnes & Argawal, 2005). This paper will regard the effect on poverty by using these three indicators, however, to understand what is meant by education, health and gender roles, the targets of the MDGs and SDGs are referred to, as shown in table 1. Although living standards are a dimension of poverty that is important, gender roles are addressed.
Indicator Millennium Development Goals Sustainable Development Goals Health Reduce child mortality
Reduce with ⅔ by 2015 Improve maternal health Reduce with ¾ by 2015
Combat HIV/AIDS, malaria and other diseases
Halve spread of major diseases Achieve universal access to medicines
Good health and wellbeing
Reduce maternal mortality to 70 in 100000 births by 2030
Reduce under-5 mortality to 25 in 1000 births by 2030
End epidemics of major diseases by 2030 Education Achieve universal primary education
Accessibility to education for all by 2015
Quality education
Accessibility to education for all by 2030 Gender
roles Promote gender equality and empower women Eliminate gender disparity in
education by 2015
Gender equality
Eliminate all violence against women by 2030 Enable women to participate fully in society
Methodology
This paper tries to examine the possibilities renewable energy sources in rural Ethiopia provide for development and poverty reduction. Since fieldwork was not possible within the scope of this project, a literary research has been conducted. The study will provide a new view related to theories and concepts used in previous studies. This may possibly provide a new insight into an already discussed problem for which different insights and disciplines might add knowledge. Using disciplines law, business, earth sciences and human geography this paper set out to elaborate and create insights into poverty and renewable energy, which are both frequently discussed topics but together may change perspectives on development of a country.
To answer the research question, the paper is divided into two parts, part one is where renewable energy is elaborated on and the second part studies the causality between poverty and renewables (Figure 2). In order to pursue the interdisciplinary nature of this paper, other studies on renewable energy and poverty reduction were used to answer the different sub-questions as thoroughly as possible. It was decided to answer the question through integration of the different disciplines and elaborate on the different perspectives suggested by other academics. However, the interdisciplinarity of the paper generated new findings and insights into the topic at hand. Also, with this approach strengths and weaknesses of disciplines where enhanced or complemented by others, again establishing new perspectives and opportunities for development within the topic of renewable energy and poverty.
Figure 2 shows that in the first part of this research the renewable energy techniques and the organisational structure of rural electrification are studied to elaborate on the possibilities of renewable rural electrification in Ethiopia. The insights of the disciplines law, business and earth sciences are integrated with each other and used to gain knowledge related to the techniques and organisational structure of renewable rural electrification. In part 2 of this research the topics health, genders and education are studied to elaborate the effect of renewable energy on development and poverty reduction. The discipline of human geography is used and will have less integration with other disciplines, but aspects will come back or will be based on the renewable energy source knowledge provided by the other disciplines. Notwithstanding, in overall an integration of different insights has been reached to elaborate on renewable energy and its causality with poverty reduction.
In order to integrate all four disciplines and relate information and knowledge to each other, an organization technique is used as integrative method. This technique identifies commonalities in concepts and theories, and redefines them in order to map and arrange causalities between them (Menken and Keestra, 2016). This technique was chosen for our research paper as it can be divided into two parts: a focus on renewable energy and possibilities for rural Ethiopia and the causality between renewable energy services and development in relation to poverty reduction. And so, through the literary study and the use of the organization technique, this paper
anticipates to create a synthesis between different disciplines in order to answer the research question as extensive as possible.
Part 1. The potential for the use of renewable energy in achieving rural
electrification
This first part focuses on the potential for the use of renewable energy in achieving rural
electrification in Ethiopia. In order to weigh that potential two aspects are considered. Firstly the technical options for implementing renewable energy systems (RES) in rural areas, and secondly the existing organizational structure for rural electrification (RE) in Ethiopia. This part is limited
to considering the organizational and technical ramifications of using RES to achieve RE, were funds to be available.
1.1 Technical options for renewable energy in rural Ethiopia
There have been numerous studies concerning the implementation of renewable energy sources in Sub-Saharan Africa but also specifically in rural Ethiopia, relating to specific single energy sources and benefits concerning the implementation of renewable energy sources
(Stutenbäumer, Negash & Abdi, 1999; Bekele & Tadesse, 2012; Baurzhan & Jenkins, 2016). Moreover there also is a growing body of literature that discusses hybrid systems, which use multiple RES. One of the studies concerning hybrid systems is that of Bekele & Tadesse (2012), which has been executed in the Dejen district, Ethiopia. The off-grid system studied is a hydro, photovoltaic and wind hybrid system. During this research, electricity availability in this region was less than 2%. Besides the study of Bekele et al. (2012), others too have concluded that such a system is highly commendable for rural electrification, especially with a backup of a diesel generator and a battery system (Kenfack et al., 2009; Kanase-Patil et al., 2010).
Hybrid systems
Feasibility studies have not only been executed for the hybrid system that uses solar,
hydrological and wind energy but also for other hybrid systems. Bekele & Palm (2010) assessed the feasibility of a hybrid system harnessing only solar and wind energy in the context of providing electricity for a modelled community of a thousand people in total. The most cost-effective system, taking into account diesel prices in 2009, did not include a contribution from renewable resources, as it only used a generator and battery. However, the setup with a significant contribution by renewables, 51% and 81%, were considered very attractive taking into account that the difference in cost effectiveness was minimal. Bekele et al. (2010) concluded that choosing a system that includes RES would be very realistic with rising diesel oil prices and decreasing costs of the technology of RES. Considering the energy load all the hybrid systems, with different portions of renewable energy sources, were able to meet the energy demand. As can be seen in figure 3, the hydrological part of the hybrid system studied by Bekele et al. (2012) was very important for the total electric production. Hydrological electric production was up to 30 times higher than energy production by wind or solar energy in some months. However, as mentioned in Bekele et al. (2012), hydro energy is highly region-specific compared to wind and solar energy. Hydropower is generated at runoff-dependant rivers. Drier regions have much lower runoff rates and thus lower hydro energy production. Moreover, according to Bekele et al. (2012) systems dominated by hydro energy have political, geological and climatic risks.
Therefore they state the importance of diversifying the power system. When electricity
production by hydro energy is low, as a result of the seasonal nature of this energy source, and it is the dominant energy source of a power system, the system might struggle to sustain a high enough energy production. This can be seen in the first months of the year in figure 4.
Furthermore figure 3 and 4 state the importance of a generator in these hybrid systems in order to be able to produce sufficient energy when the RES have a lower power potential.
Although wind energy is relatively low in Ethiopia, Mulugetta & Drake (1996) showed that in some regions of the country utilizing wind energy as a standalone renewable energy source can have a high potential. Mulugetta et al. (1996) state the earlier potential of wind energy, although data-point density was insufficient to create a reliable wind energy profile of Ethiopia.
Furthermore, the earlier mentioned studies of Bekele et al. (2012) and Bekele et al. (2010) concerning hybrid systems showed that it is very suitable for complementing other RES. This can be seen in figure 3, where the modelled electric production by wind in most months is almost as high as that of solar energy.
Which hybrid system is optimal is strongly related to the region of implementation and to the diesel oil price. For example, the regional differences in wind speed and hydropower potential determine whether harnessing wind energy and or hydro energy is suitable. This correlation between the optimal hybrid system, diesel price and in this example wind speed is shown in figure 5. All systems are complemented with a generator and a battery. With a low diesel price and a low wind speed, a power system using just the generator and battery is considered optimal. At the same wind speed but a higher diesel price a system also utilizing solar energy becomes optimal. At a very high diesel price and a wind speed between 4 and 5 meters per second, the system utilizing both wind energy and solar energy becomes optimal.
Small-scale stand-alone photovoltaic systems
Among others, Baurzhan et al. (2016) and Stutenbäumer et al. (1999) focus particularly on small-scale stand-alone photovoltaic (PV) systems. Stutenbäumer et al. (1999) assessed the potential of such systems for the rural electrification of Ethiopia with the use of insolation data and specific rural Ethiopian economic conditions. For the analysis Baurzhan et al. (2016) took a more interdisciplinary approach. They addressed “cost-effectiveness, affordability, financing, environmental impact, and poverty alleviation”, all in the context of dropping prices of PV systems.
Off-grid solar PV systems are not feasible financially or economically for rural households of sub-Saharan Africa (Baurzhan et al., 2016). However, such systems could be feasible when these technologies are subsidised by other countries. Contradicting to Baurzhan et al. (2016), Stutenbäumer, et al. (1999) stated the high cost efficiency of the same systems. Apart from the different methodological approach mentioned earlier, this difference in conclusions might be the result of other factors as well. The 17-year gap between both studies could be one of the main causes for this contradiction, as well as a difference in scope; one research analysed the feasibility of PV systems in rural Ethiopia while the other analysed it concerning all SSA
countries. Furthermore Stutenbäumer et al. (1999) concluded the cost efficiency in comparison to other alternatives, while Baurzhan et al. (2016) analysed the costs of such systems compared to the population's income. Although both studies, as well as Mulugetta et al. (1996) concluded that solar energy is an abundant renewable resource in the Ethiopian context, the possibilities for implementing standalone PV systems are restricted financially.
1.2 The organizational structure of rural electrification in Ethiopia
In order for renewable energy to contribute to poverty alleviation in Ethiopia, renewable energy installations have to be implemented in rural areas. This is mostly done within the context of the government-led Rural Electrification Fund (REF). The REF is an entity within the Ethiopian Ministry for Water, Electricity and Irrigation charged with the harmonization and
implementation of off-grid RE-efforts, making it the foremost organizational structure relevant to off-grid RE (Tessama et al., 2013). Three factors pertaining to this organizational structure will be discussed, these are: effective planning, technical support and local involvement. Several articles have tried to formulate the necessary properties of a successful RE-program based on information about existing programs, such as Barnes (2011), Rahman et al. (2013) and Yadoo & Cruickshank (2010). Effective planning, technical support and local involvement were most often listed, in different forms, as important factors in the considered literature. The organizational structure of RE in Ethiopia is therefore evaluated based on these factors.
Effective planning
For a RE-program such as the REF, to be successful, effective planning efforts are considered essential. Planning can take on different forms, but includes the formulation of a binding long-term plan containing, for example, the prioritisation of certain areas and the standardization of the decision making process concerning the choice between off-grid or on-grid RE (Rahman et al., 2013; Barnes, 2011; Rahman et al., 2013b). To allow for effective planning, Barnes (2011)
considers it necessary for an organizational entity responsible for RE to have some form of operating autonomy. The foremost advantage of effective planning is the suppression of political intervention in a naturally political subject such as RE and thus an increase in efficiency
(Rahman et al., 2013). The question is therefore how this factor is implemented in the Ethiopian context.
The REF is headed by the Rural Electrification Executive Secretariat (REES), which operated autonomously from the energy ministry (MoWEI, 2003). The REES has devised an off-grid RE-master plan in order to perform its task of funding and coordinating off-grid RE. This plan has identified projects, prioritized attractive settlements and proposed a phased action plan aiming at cost minimization (Hadagu, 2006). Furthermore, it prioritized renewables by offering more attractive loans for RES (Reegle, 2014). Although this hints at the fulfilment of this factor, Afanador et al. (2016) note that the REF sometimes lacks financial and technical capacity to actually steer RE-efforts. Furthermore, on-grid RE-efforts are organized by the state-owned utility (EEPCo) according to their own planning. To optimize efficiency these efforts should be better coordinated (Reegle, 2014).
Technical support
As rural households and communities are spread out over large areas, a necessary aspect of rural electrification by means of renewable sources is the dissemination of technical know-how. This conclusion follows from the available literature on other RE-programs in developing countries. Barnes (2011), for example, draws the conclusion after analysing several RE-programs that a common underlying principle of successful programs is that they feature a central government agency that provides technical training, sets standards and thus allows for the exchange of know-how. Furthermore, Rahman et al. (2013) claim that a central success-factor of the Bangladeshi RE-program was that, although RE was performed by decentralized cooperatives, a central organ set technical standards and provided managers with the necessary know-how. The question is thus how this important factor is implemented in the Ethiopian context.
Although the REF is the central coordinating entity for RE, the Ethiopian Energy Authority (EEA) is responsible for setting technical standards for off-grid technologies (Afanodor et al., 2016). The EEA is the main Ethiopian energy agency and does not offer technical assistance. That gap is also not filled by the REF, even though its founding document posits the aim to provide technical assistance (MoWEI, 2003; Afanodor et al., 2016). As Afanodor et al. (2016) mention, this absence of a knowledge platform is a serious barrier to the development of renewable energy in rural areas. A possible explanation for this lack of technical support is that the REF was set up with the main purpose of bringing together state and non-state funds to help finance RE-projects and coordinate efforts, while relying on the regular energy authority for other aspects of the electrification process (Tessama et al., 2013). This regular authority is not tuned to the special needs of rural communities and the special nature of off-grid technologies, creating a mismatch.
Local involvement
Another important factor influencing the efficiency of organizing rural electrification is the consideration of the local context wherein off-grid systems are implemented and the involvement of the local communities that are the consumers. This also follows from the
aforementioned literature on successful RE-programs. Another common underlying principle of successful programs named by Barnes (2011), is that programs need to seek a way to involve local communities in the electrification process. An important example of a manner in which to achieve this are local cooperatives. A democratically elected commission usually heads these cooperatives and is in charge of providing energy sources. Cooperatives are financed by a central regulatory, which also sets performance standards. Cooperatives are the most important
example of community involvement. Advantages associated with community involvement are a decrease in abuse and non-payment and an increase in the sense of responsibility felt by
consumers, resulting in better maintenance (Yadoo & Cruickshank, 2010). The question is thus how this factor is implemented in the Ethiopian context.
As mentioned before, the main organizational structure for RE in Ethiopia, the REF, was set up to bring together state and non-state funds to finance RE-projects and to harmonize efforts.
According to the founding document of the REF, these include efforts by private entities,
cooperatives and local communities (MoWEI, 2003). But neither in the harmonizing or financing function the REF has adopted rules or guidelines that aim to ensure the involvement of local communities (Afanodor et al., 2016; Reegle, 2014). Although it makes economic sense for projects aimed at developing off-grid energy systems to consider the local context in their plans, the current organizational structure does not oblige them to actively involve consumers in the way meant by Barnes (2011) and Yadoo et al. (2010).
As mentioned before, off-grid capabilities allow renewable energy systems to contribute to rural electrification. Based on the above analysis of the different technical options it can be concluded that a hybrid system utilizing multiple renewables, in combination with a battery and a
conventional generator is most suitable for implementing RES in rural Ethiopia. Furthermore, the selection of renewables contributing to this hybrid system needs to be based on the conditions for a prospective area for RE. As evidenced by Bekele et al. (2012), such a system is also practically feasible. The organizational entity for coordinating the implementation of such off-grid systems in Ethiopia is the REF. It can be said, based on the above, that this structure can possibly provide the necessary support to realize this technical potential as there is a
coordinating entity in existence that engages in planning and prioritizes renewable systems. Nevertheless, to increase the likelihood for successful implantation a technical support platform should be set up and policy makers could consider making active local involvement in RE-projects mandatory, as these factors are viewed as common underlying principles of successful RE-programs in developing countries.
Part 2. Renewable energy and its effect on development and poverty
The energy sector is considered to play a significant role in achieving goals related to poverty, education, gender relations, health and income of urban and rural populations. Especially in rural areas, where more than 70% of the poor live worldwide, energy access can have a considerable positive effect on growth and improvement of livelihoods (Cabraal, Barnes &Agarwal, 2005). Consequently, in terms of economic and human development, changes may occur. From an economic perspective, energy access in rural areas may provide improved agricultural productivity and economic growth. Electricity was seen as a means to transform the underdeveloped agrarian economy. However, this view has changed and now encompasses human development as a beneficial factor of rural electrification (Cabraal et al., 2005).
Energy services are nowadays not only seen as a means to increase agricultural productivity but also as providing opportunities for additional income and the creation of human capital.
Additionally, more attention was brought to the application of renewable energy for sustainable development through the Millennium and Sustainable Development Goals as a means to
stimulate human development. The MDGs and later the SDGs began to recognize energy services, like rural electrification, as a means to meet the development goals, for example it is believed that access to energy services might facilitate the eradication of poverty, one of the main goals for development (UN Millennium Project, 2005). Together with energy services for sustainable development, more attention was given to the opportunities of household energy services like electricity. It is argued that household electricity may increase opportunities for education but also reduce health risks as modern cooking possibilities provided by electricity are less harmful to people and are likely to reduce the impediment of health but also household gender roles are confronted as opportunities for women emerge. These household energy services may also indirectly positively impact the development goals set up by the United Nations (Cabraal et al., 2005).
Health and education are both part of the multidimensional poverty index which this paper uses to define poverty and may provide more clarity to whether the reduction of energy poverty is also mirrored within other aspects of poverty (Alkire et al., 2010). Additionally, household gender roles might show how energy services affect living standards of people in terms of poverty. And so, this part tries to answer how health care, education and household gender roles are affected by renewable energy sources and how this is mirrored in poverty reduction.
2.1 Health care
The Millennium Development Goals and the more extensive Sustainable Development Goals, seek to target several health aspects globally, by reducing child mortality, maternal mortality and the spread of major diseases like HIV/AIDS. Over the course of 25 years, maternal and child mortality rates have decreased significantly (both were halved) and medicines for major diseases are more accessible, however goals have not yet been reached (United Nations, 2015; UN Sustainable Development, 2015). Ethiopia also made progress in addressing the basic health care needs for the Ethiopian population. The Ethiopian government and the Ethiopian People’s Revolutionary Democratic Front both had the ambition to reach the development goals and provide services in the health care areas (Downie, 2016).
Although efforts have been made to enhance the health care system of Ethiopia, the current energy deprivation in many rural areas greatly affects the Ethiopian health care system. Health posts are not connected to the electricity grid and do not have energy intensive equipment like operating lights that may endure the whole night or laboratory equipment which may restrict operating possibilities and endanger lives (Cabraal et al., 2005). Limited supply of electricity and its quality restricts the ability of Ethiopian health centres and hospitals to deliver health services. As a result, the ability of Ethiopia’s health system to develop reliable networks to diagnose and treat diseases is undermined (Baldinger, 2008).
There are both direct and indirect consequences on health and medical facilities in sub-Saharan Africa due to a lack of access to modern forms of energy and energy poverty. More than 30% of clinics and hospitals in sub-Saharan Africa do not have reliable access to electricity (NCAPD, 2010). Bad quality lighting in medical facilities can pose risks to the patients. Facilities without electric lighting have to depend on candles or torches that provide low-quality lights, is unsafe
and may emit harmful fumes. Additionally access to proper lighting may allow doctors to help a greater number of patients and it increases the quality of medical examinations (Cabraal et al., 2005). Studies have shown that maternal and child mortality can be reduced by 70% at night with the provision of minimal lighting and energy-dependent medical devices (World Health Organisation, 1997). Another great risk at medical facilities is the storage of vaccines,
medications and blood work. Exposure of vaccines to temperatures outside the recommended ranges can reduce the effectiveness (CDC, 2015). A health post in Mojo, Ethiopia, has no access to electricity, which means that vaccines are picked up from the nearest health centre, because they have to be kept refrigerated (NCAPD, 2010).
2.2 Education
One of the Millennium Development Goals was to achieve universal primary education within which every boy and girl will be able to finish a full course of primary education in 2015 (United Nations, 2015). Over the past fifteen years the attendance of boys and girls attending primary education increased with 15%, reaching up to 91% attendance in developing regions.
Additionally, illiteracy rates decreased for youth and reduced the gap between women and men (United Nations, 2015). The United Nations believe that electrification can play a vital role in enhancing education attendance and the gathering of general knowledge (UN Millennium Project, 2015). This is shown in figure 6, which shows the relation between the access to electricity and the mean years of schooling, the higher the access to electricity, the higher the years of schooling. The World Bank (2008) argues that electricity access in developing regions can increase educational levels in two manners; firstly, electrification may increase quality of schools as electricity-dependent materials are accessible which may result in higher grades and motivation. Secondly, it is argued that household and public electricity access may enhance time allocation and thus increase time to study, even in the evenings resulting in an increase in knowledge and achievements. A study from the Philippines has shown this to be true; children living with household electricity were likely to be a head of other students, some with more than two years (The World Bank, 2008).
Several studies have argued that electric lighting and rural electrification have the most impact on education possibilities in communities. According to Von Massow (2010) and Cabraal et al., (2005), the high levels of rural poverty results in girls and women being more likely to attend household activities than attend an education. In traditional household setting in developing regions, women and girls are concerned with household activities while men provide most of the income. The implementation of rural electrification and the access to electricity may create educational opportunities for girls as electricity provides energy to cook and do other energy-dependent household activities and so girls experience less impediment from gather fuel wood. Additionally, Martinot et al., (2002) argue that rural electrification enhances the quality of light within households making studying at night possible. The access to light also benefits the income of adults if extracurricular or self-study is realized. The combination between the provision of
energy and education may result in a higher income in the long term as higher educational knowledge is achieved (Cabraal et al., 2015).
In rural Ethiopia, a low educational level results in lower income and creates fewer possibilities to achieve higher income levels and better jobs. Low-income households, often because of no education, exert child labour and experience a lower livelihood (Von Massow, 2010). Education may decrease the level of household poverty through the provision of basic needs like better health care and increased living standards and may eventually enhance the quality of life (Alkire et al., 2010). Additionally, education is seen as a means to generate human capital and thus provide for higher incomes and contribute to economic growth, also known as the human capital approach to education (Tilak, 2010). This means that an increase in education may help diminish other deprivation within the poverty index, for example nutrition and sanitation. Furthermore, the effects of education of living standards and quality of life may change the behaviour of women towards fertility and children, possibly in the long term affect the demographic transition of a country, like Ethiopia (Tilak, 2010). And so, access to electricity may provide educational opportunities for households.
2.3 Gender roles
The improvement of quality and quantity of energy services is essential to achieve Millennium and Sustainable Development Goals. Energy is an essential part of everyday life and is needful for lighting, cooking and heating. There is a division of labour by gender, where women have a special role in sustainable economic development due to the tasks they perform (Farhar, 1998). Because women, especially in rural areas, are primarily accountable for the majority of the household, access to energy will substantially improve their quality of life. The dependency on the natural energy resources enhances time poverty, the inability to invest the desired amount of time into education, leisure and other activities (Scheurlen, 2015). Women and girls are most affected by time poverty, as they are traditionally responsible for the collection of cooking fuel for which they are to travel long distance. Because women are primary energy producers and users for the household, they tend to have more health problems from burning and collecting wood (Habtezion, 2012). In Ethiopia cooking is exclusively the domain of women. Due to the lack of infrastructure and high prices for cooking technologies, most rural households continue to use traditional cooking stoves. These have low energy efficiency and a high fuel resources demand. Furthermore, it leads to exposure to indoor air pollution, which accounts for health concerns and caused 2 million deaths every year (Scheurlen, 2015).
Women’s time allocation to child rearing could have positive implications for children’s
education and health, which can positively affect the household’s future income. Accordingly, if more time is made free from natural energy resource collection work for farm work, child rearing or leisure time, the wellbeing of the household will increase (Scheurlen, 2015). The lack of recognition for the role of women could undermine the effectiveness and sustainability of energy projects. Renewable energy can play an important role in the access to modern energy services, and with that making time for women to do domestic tasks, education and mitigation of the impacts of indoor safety (Assman, Laumanns & Uh, 2006). The empowerment of women is also an important factor (Farhar, 1998). In terms of economic advantage and finances, women generally have less access to energy related services than men, for example, gender stereotypes lead to an exclusion of women from discussion about energy plans and policies (Habtezion, 2012). The access to electricity may change the gender roles within households where women and girls are concerned, especially with household activities.
The evaluated studies relating to poverty and renewable energy have shown the importance of energy resources in the reduction of poverty based on health, education and gender roles. Through the use of the Millennium and Sustainable Development Goals, targets where set which might be met through the use of rural electrification. Within all three concepts, time allocation created by household and public electrification is often referred to. Through the access of rural electrification, time spend on collecting natural energy resources can now be spend elsewhere,
such as for educational purposes and child rearing. Furthermore, it has been argued that time spend on education may have positive effects on the households health and quality of life. Moreover, access to high quality and quality of electricity may enable students to study at night and allow medical practitioners to examine more patients and ensure better treatment. Rural electrification may, in terms of education, health and gender roles, be the foundation to development and in turn, reduce poverty in rural areas of Ethiopia.
Discussion
This research aimed to elaborate the technical opportunities of renewable energy in rural Ethiopia, the organisational structure of rural electrification in this area and the causality between electrification and poverty. It was found that a hybrid systems including hydro,
photovoltaic and wind energy together with a battery and generator provides most potential for rural electrification in Ethiopia. In terms of poverty reduction, the provision of rural
electrification may enhance educational levels, health care and gender equality within
households. However, there remain areas of research that were not addressed within the scope of this paper that may influence the extent to which renewable energy systems influence poverty reduction in rural Ethiopia.
Technical and organizational research
As the first part of this paper discusses the technical possibilities of the implementation of renewable energy and the second part discusses the effects on the development, there is a big gap in this research: how it will be realised considering the financial, social and cultural situation. Postliminary of this research it is yet unclear who will subsidise the RES and how it will be distributed. This is a controversial subject that will allegedly be delegated to the
Ethiopian government, non-profit organizations, non-governmental organisations and business organizations
In researching the organizational structure for rural electrification in Ethiopia, this paper mainly used literature on successful RE-policies and compared important factors following from this literature to the Ethiopian context. The information on the Ethiopian context was based on the existing regulations and analysis thereof. Whether the reality corresponds with this information was not considered. Further research could therefore focus on the effectiveness of Ethiopia’s energy policy. An important factor in this context could for example be corruption.
Energy dependency
This research paper focussed on the relationship between renewable energy and poverty reduction, and assumed that renewable rural electrification would be the means to do so. The paper did not discuss the energy dependency of a population on renewable and conventional energy, which could have affected the positive impact on poverty. Renewable energy sources (RES) are typically domestic resources and can reduce dependence on energy imports (Ölz, Sims & Kirchner, 2007). Renewable energy sources, like photovoltaic energy and hydropower can be provided with local resources to communities that are secluded, guarantee an energy supply and assign energy independence (Pereira et al., 2009). According to Peskin and Barnes (1994), photovoltaic has the possibility to fulfil energy demands in rural areas. Even at the lowest economic level, it can make a significant improvement in living standards. Due to the complementation of different renewable energy resources to each other, combined they can contribute to energy security and regional development without the dependency of foreign energy resources that are often subject to political instability and high energy prices (Bull, 2001).
Additionally, in part 1.1 was mentioned that the energy produced by hydro, wind and solar energy are climate and region-sensitive. This may mean that some areas are not fit for hydro, solar or wind energy due to spatial implications or climatic implications, this may make the rural population there more dependent on the battery and generator of conventional energy. This could change the energy dependency rural population have on renewables and thus further research is to be conducted on the spatial implementation of these hybrid systems. Research, possibly by using Geographic Information systems (GIS), on the spatial division and organization may provide a more extensive analysis on where hydro, solar and wind energy production may be most effective.
Conclusion
Energy and electricity are one of the most frequently occurring deprivations in terms of poverty in rural Ethiopia. As energy poverty plays a significant role in the development of rural Ethiopia, this paper aimed to elaborate on the causality between renewable energy sources and poverty
reduction in Ethiopia through the use of multiple disciplines in order to study how renewable energy contributes to poverty alleviation in rural Ethiopia.
Several studies have shown, such as Bekele et al. (2012), that hybrid systems using multiple renewable energy sources including hydro, photovoltaic and wind energy, in combination with a battery and generator are most suitable for the implementation of a renewable energy system in rural Ethiopia. Studies have shown that hybrid systems have a high energy-generating potential as the renewable energy sources may complement each other because of the climate and region sensitive production. This system has been found to be highly commendable for rural
electrification, which may show most potential to enable energy access to rural populations of Ethiopia. For the implementation of rural electrification to be feasible, a coordinating
organizational entity in Ethiopia is necessary, namely the Rural Electrification Fund (REF), which prioritizes renewable systems and is active in the planning of its implementation. However, a technical support platform and local involvement are highly recommended to provide a successful RE-program in Ethiopia.
Assuming renewable electrification is implemented in rural Ethiopia and households gain day and night access to electricity, development of rural households may be set in motion. Several studies, including Cabraal et al. (2005), believe that access to electricity may enhance the educational level of adults and children due to a possible change in time allocation, increase of gender equality and enhance health care. Women and girls would have the opportunity to enrol in primary and secondary education since traveling is not necessary to collect energy resources. Additionally, higher educational levels may increase the household health care knowledge and enhance human capital. Furthermore, the quality and quantity of lighting provided by electricity may create opportunities for medical practitioners to secure better treatment and for children to study at night. The increase in health care, gender equality and educational levels is likely to improve living standards and quality of life of households. Rural electrification, in terms of education, health and gender roles may be the driver of development.
Regarding the relationship between renewable energy sources and poverty reduction in rural Ethiopia, it can there concluded that the implementation of a hybrid electrification system using solar, hydro and wind energy together with a battery and generator will create potential for development in rural Ethiopia. Energy accessibility affects the educational levels, health care and gender roles within a household and the interplay between these indicators of the
Multidimensional Poverty Index is likely to initiate a reduction in poverty.
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