Evaluating The Impact Of Renewable Energy In A Developing Country

ABSTRACT

Access to sustainable and affordable energy services is a crucial factor in reducing poverty in developing countries. In particular, small-scale and community-based renewable energy projects are recognized as important forms of development assistance for reaching the energy poor. However, to date only a few empirical evaluations exist which analyze and compare the impact of these projects on local living conditions and their sustainability ex-post implementation.

To better understand the impacts and the conditions that influence sustainability of these projects, the research presented in this paper evaluated 23 local development projects post implementation. By applying an standardized evaluation design to a cross-sectional sample in terms of renewable energy sources (solar, wind, biomass, hydro), user needs (electricity, food preparation, lighting, productive uses), community management models, finance mechanisms and geographical locations, the review results provide valuable insights on the underlying conditions that influence the success or failure of these small-scale local energy interventions. The empirical evidence suggests that the sustainability of small-scale energy implementations (≤100 kW) in developing countries is determined by the same factors, independent of the socio-cultural, political and ecological context. These findings allow to better predict the long-term success of small sustainable energy projects in developing countries, this can help to improve project designs and increase the certainty for future investment decisions.

TABLE OF CONTENTS

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWELDGEMENT

ABSTRACT

CHAPTER ONE

1.0      INTRODUCTION

1.1      BACKGROUND OF THE PROJECT

• AIM OF THE PROJECT
• OBJECTIVE OF THE PROJECT
• SCOPE OF THE PROJECT
• ADVANTAGES OF RENEWABLE ENERGY
• DISADVANTAGES OF RENEWABLE ENERGY
• TYPES OF RENEWABLE ENERGY
• BENEFITS OF RENEWABLE ENERGY
• PURPOSE OF USING RENEWABLE ENERGY
• PROJECT ORGANIZATION

CHAPTER TWO

LITERATURE REVIEW

• AN INTRODUCTORY REVIEW
• OVERVIEW: THE STATE OF EVALUATING SMALL-SCALE RENEWABLE ENERGY PROJECTS IN DEVELOPING COUNTRIES
• AN OVERVIEW OF ENERGY CONSERVATION
• PROBLEMS ASSOCIATED WITH THE ENERGY CONSERVATION
• AN OVERVIEW OF THE RENEWABLE ENERGY
• THE NIGERIAN ENERGY SITUATION
• SUSTAINABLE HOUSING IN NIGERIA
• STATUS OF RENEWABLE ENERGY IN NIGERIA

CHAPTER THREE

3.0      METHODOLOGY

3.1      EVALUATION PRINCIPLES

3.2      EVALUATION DESIGN

3.3      EVALUATION SAMPLE

CHAPTER FOUR

4.0      RESULT

• IMPACT

4.1.1. Impacts of projects on MDG 1: reducing extreme poverty and hunger

4.1.2. Impacts of projects on MDG 7: ensuring environmental sustainability

4.1.3. Impacts of projects on MDG 8: promoting global partnership for development

4.2.       SUSTAINABILITY

CHAPTER FIVE

• DISCUSSION AND CONCLUSION
• RESEARCH OUTCOMES AND RECOMMENDATIONS
• REFERENCES

CHAPTER ONE

1.1                                                               INTRODUCTION

Over the last two decades the number of people without access to modern energy services, defining those lacking access to electricity and clean cooking facilities, has decreased significantly. However, 2.6 billion people still lack access to affordable and reliable energy services to meet their basic energy needs [1]. Most of these people live in rural areas in developing countries or belong to the urban poor. Without access to energy the chances of reducing poverty and advancing development are poor. Thus, even though none of the Millennium Development Goals (MDGs), representing the universal development objectives agreed on by the international community, relate directly to energy, it is widely acknowledged that it will not be possible to achieve the MDGs without expanding energy access [2]. But energy access is not the only concern; energy supply should also be sustainable, avoiding the drawbacks of conventional energy sources such as harmful emissions, noise, high fuel costs and supply insecurities. This call for sustainable energy access for development is further underlined by the declaration of the decade 2014–2024 as the Decade of Sustainable Energy for All by the United Nations General Assembly. The initiative supports renewable energy sources as a key technology to reach the energy poor, offering clean electricity, heating, cooking and lighting solutions to people and communities who currently depend on traditional energy sources and/or expensive fossil fuels. Renewable energy technologies are regarded as particularly suitable because they can provide small-scale solutions and decentralized energy supply that meet the needs of the population most widely affected by energy poverty. Furthermore, innovations and cost reductions over the last decade have made renewable energies more economically competitive in relation to traditional fuels [3], which have also helped to strengthen the case for renewables. Nevertheless, these technologies still face a range of social, economic and structural challenges, requiring not only further technological development but also a deeper understanding of both the success factors and the barriers to accomplish widespread dissemination. This is demonstrated by a recent study by Bhattacharyya [4] on financing energy access and off-grid electrification, which showed that despite recent progress and the support of the international community only limited funding is available for small-scale community projects. According to Bhattacharyya [4] most funds are allocated to larger energy generation projects that barely address the energy needs of the poor. Yet, small-scale projects can play a key role in supporting the transition towards more sustainable energy systems. Therefore, the WISIONS initiative¹ provides support to innovative project approaches and capacity development to respond to energy needs at local level via its Sustainable Energy Project Support (SEPS) scheme. Since 2004, a total of 64 projects worldwide have been selected for SEPS support. These projects focus on different energy-related needs, technologies and implementation concepts. Although most of these projects were completed successfully, small-scale renewable energy projects do not automatically become sustainable in the long term. In the literature there are numerous documented accounts of development efforts that fail because they cannot create conditions that lead to lasting results [5], [6], [7]. A study by Bhattacharyya [8] on the relationship between energy access programs and sustainable development suggests that the existing practices of providing energy access are generally unsustainable from a number of perspectives. Therefore it is important to evaluate and accurately assess the impact and sustainability of such projects after the initial project activity is completed, to learn from results and improve the quality of future decisions and projects.

1.2                                               OBJECTIVE OF THE STUDY

The main objectives of this paper are:

(a) to evaluate the impact; and

(b) to determine the mid-term sustainability of 23 small-scale renewable energy projects ex-post implementation as well as

(c) Advancing the knowledge of the effects of energy access projects at local level by exploring whether influencing factors and barriers are linked to the type of technology, whether they depend on the economic, social or geographical background or whether common patterns independent of these factors can be identified. The results offer stakeholders information about the major influencing factors in the success or failure of achieving sustainability in small-scale renewable energy projects in developing countries.

1.3                                                   SCOPE OF THE STUDY

The world is fast becoming a global village due to the increasing daily requirement of energy by all population across the world while the earth in its form cannot change. The need for energy and its related services to satisfy human social and economic development, welfare and health is increasing. Returning to renewables to help mitigate climate change is an excellent approach which needs to be sustainable in order to meet energy demand of future generations. The study reviewed the opportunities associated with renewable energy sources which includes: Energy Security, Energy Access, Social and Economic development, Climate Change Mitigation, and reduction of environmental and health impacts.

1.4                                 ADVANTAGES OF RENEWABLE ENERGY

1. It is safe, abundant, and clean to use when compared to fossil fuels: Even clean-burning natural gas is at a disadvantage to what renewable energy sources can provide. Enough sunlight comes down on our planet every day that if we could harvest it with solar panels and other forms of collection, we could power everything for an entire year. Because wind is created by the warmth of the sun, it is also virtually limitless. Fossil fuels, in theory, are a finite resource because of how they are created.
2. Multiple forms of renewable energy exist: Diversification within the renewable energy sector has exploded since the 1970s. From dams that provide hydropower to solar strips that are strong enough to handle the weight of a vehicle and can be turned into roads, we have numerous methods of creating power through the collection of renewable energy. There is greater diversity in this sector when compared to fossil fuel resources.
3. It provides the foundation for energy independence: Many nations rely on fossil fuels for their society to function under the “modern” definition. These fuels come from a handful of countries that work to control pricing and availability. By developing renewable energy resources, countries can work toward energy independence with a diversified portfolio of energy to access. Although these resources take time to develop, it should be remembered that the current fossil fuel infrastructure has more than a century of development behind it
4. Renewable energy is stable: When renewables are creating energy, the power produced is stable and usable, just like any other form of “traditional” power. It is a dependable resource when an infrastructure is available to support it. Jobs are created within the sector as well, creating stability within local economic sectors at the same time. The power created can be distributed through existing grids, which can limit installation costs for some communities.
5. It is a technology instead of a fuel: Coal must be mined and refined to make it useful. Natural gas must be released and transported. A fossil fuel is created from natural resources, whereas renewable energies are created thanks to the use of technology. For this reason, the pricing of renewable energies will continue to go down as improvements in technology occur. Fossil fuels can see price reductions through mining and refining efficiency improvements, but there will always be an underlying labor cost that will affect pricing and availability.

1.5                              DISADVANTAGES OF RENEWABLE ENERGY

1. Not every form of renewable energy is commercially viable: Many forms of renewable energy must be collected at a specific location, which means distribution networks must be setup to take advantage of the power that can be generated. These networks require a massive fossil fuel investment that can take generations to neutralize with the use of renewable energy. From tidal power to geothermal, the commercial viability of many renewable energy resources is not available right now.
2. Many forms of renewable energy are location-specific: Even solar energy has limited potential in some locations. There are some places in Nigeria that always cloudy or rainy while there some that are sunny. Solar energy can efficiently and effectively be used in sunny areas.
3. Many forms of renewable energy require storage capabilities: With traditional power resources, a home or business is connected to a local distribution grid so that it can be accessed 24/7. When using a renewable energy resource, back-up and storage resources must be included with the power generation opportunity. Sunlight doesn’t happen at night. Wind speeds are not always consistent. The storage capabilities that are required can push the cost of a new renewable energy system beyond what the average person or community can afford.
4. Pollution is still generated with renewable energy: Renewable energies are cleaner than most fossil fuels, but “cleaner” and “clean” are very different terms. A resource like biomass still burns waste products and puts pollution into the atmosphere. This includes carbon and methane, which are classified as greenhouse gases. The technologies and facilities that are used to build renewable energy resources require fossil fuels, as do the transportation and distribution networks. In many instances, renewable energy relies on fossil fuels, whereas fossil fuels do not rely on renewables.
5. Renewables often require subsidies to make them affordable: In the United States, an emphasis on biofuels and renewable energies led to the creation of ethanol as a crude oil replacement. Despite taxpayer-funded subsidies in place for this corn-based fuel, only 430,000 barrels per day were produced in 2007. That was enough to replace 2% of the oil that was being consumed while corn prices skyrocketed because of the crops being funneled into this renewable fuel.
6. Some forms of renewable energy require a massive amount of space.
   To product 20 megawatts of energy, current solar technologies require 100 acres of space. In comparison, the footprint for a nuclear power plant is 1 square mile to produce 1,000 megawatts of energy. Solar is therefore 45 times less space efficient compared to nuclear power. Solar is even worse, requiring up to 360 square miles to produce the same energy as one nuclear power plant.

1.6                                         TYPES OF RENEWABLE ENERGY

The most common renewable power technologies include:

• Solar (photovoltaic, solar thermal)
• Wind
• Biogas (e.g., landfill gas/wastewater treatment digester gas)
• Geothermal
• Biomass
• Low-impact hydroelectricity
• Emerging technologies – wave and tidal power

1.7                                      BENEFITS OF RENEWABLE ENERGY

Environmental and economic benefits of using renewable energy include:

• Generating energy that produces no greenhouse gas emissions from fossil fuels and reduces some types of air pollution
• Diversifying energy supply and reducing dependence on imported fuels
• Creating economic development and jobs in manufacturing, installation, and more.

1.8                               PURPOSE OF USING RENEWABLE ENERGY

• Generating renewable energy on-site using a system or device at the location where the power is used (e.g., PV panels on a state building, geothermal heat pumps, biomass-fueled combined heat and power).
• Purchasing green power through through renewable energy certificates (RECs) – also known as green tags, green energy certificates, or tradable renewable certificates – that represent the technology and environmental attributes of electricity generated from renewable resources.
• Purchasing renewable energy from an electric utility through a green pricing or green marketing program, where buyers pay a small premium in exchange for electricity generated locally from green power resources.

1.9                                                         PROJECT ORGANISATION

The work is organized as follows: chapter one discuses the introductory part of the work,   chapter two presents the background for evaluating small-scale renewable energy projects,  chapter three describes the methods applied, evaluation design and evaluation sample,  chapter four discusses the results of the impacts and sustainability evaluation, chapter five summarizes the research outcomes and the recommendations these results imply and the paper conclude with and  the limitations and future research needs.