IRENA Workshop Renewables for Growing Cities in Africa: Naples, September 2, 2012
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1 IRENA Workshop Renewables for Growing Cities in Africa: Naples, September 2, 2012 Access to Electricity in Dakar: Role and Barriers to Renewable Energy Technology diffusion Touria Dafrallah ENDA Energy Environment, Development Programme «Énergie, Environnement, Développement»
2 Outline of the Presentation Overview of the Energy Situation & Renewable Energy contribution in Senegal Access to Electricity: Rural/Urban in Dakar and in other regions Status of Urban Dakar: Urbanization, Access to Electricity Access to Electricity in Dakar Barriers to access to Electricity Policy Options and role of Renewable Energy
3 Overview of the Energy Situation in Senegal Primary Energy Supply 2000: 99 PJ 2009: 158 PJ
4 Overview of the Energy Situation in Senegal Senegal Does not have oil, Natural Gas resources, all fossil fuels imported / unpredictable oil market - Low diversification of energy sources & suppliers Macroeconomic indicators/energy show a state of high energy vulnerability/threatened energy security Vulnerability index 1: share of the energy bill in the country GDP: 5%, reached 9 % during recent oil crisis: energy bill drains country economic wealth Vulnerability Index 2: Energy imports related to total export revenues > 40% reached > 50% during recent oil crisis Net Energy Import Ratio: > 50%: national resources cover less than half of the country s energy needs (includ. biomass) & > 90% (conventional). HHI (Hirshman Index): Over 1000: very low diversification of energy sources
5 Overview of the Energy Situation in Senegal Electricity Generation Mainly from thermal sources (around 90%) 10,2% only from Renewables 10% / Hydro & O.2%/Solar Electricity consumption per capita (2009): 158 kwh Well below the African average 579 kwh and the world average kwh
6 Overview of the Energy Situation in Senegal Households Energy Consumption Around 50% of total energy consumption is used in the household 17% of conventional energy High consumption of traditional energy: 58% fuelwood, 26% Charcoal, 11% GPL, 4% Electricity, 1% kerozene
7 Access to electricity Electrification Rates in Urban areas/region
8 Access to electricity Electrification Rates in Rural areas/region Senegalese authorities plan to reach 30% RE rate by 2015 and 60% rate by 2022.
9 Access to electricity Gap Rural-Urban- Gap Regions In all regions, Urban Electrification is more developed than Rural Electrification The gap is wider in several regions: Kaffrine, Kedougou, Kolda, Sedhiou, Tambacounda, Ziguinchor, Kaolack, Saint Louis Urban Electrification is not fully accomplished. It does not exceed 51 % in Sedhiou, less than 80% in Fatick, Kaffrine, Kolda, Matam, Ziguinchor
10 Status of Urban Dakar - Urbanization 49% of urban population lives in Dakar All Dakar is considered urban Increasing urbanization: natural pop. growth +rural exodus (failure of rural development) + politico-economic role of Dakar (capital of the country) Urban Dakar poverty: 42% of Dakar s population lives below poverty line and 76% involved in informal sector Development of informal settlement Slums / periurban zones: Slums cover 35% of Dakar s land area Located around the edges of the city or inside the city center Approximately 25% of population has no organized trash collection in their own neighborhood The Periurban zone in Dakar is not specifically considered in urban/rural energy planning or urban/rural planning
11 Status of Urban Dakar / Access to Energy Research study carried out/enda-gnesd (UNEP facilitated network) Step 1: Energy Demand Side: Survey at 7 Slums : 280 households and 140 small businesses: Located within and also around the city center To analyse Access to Electricity and fossil fuels (A.A.A.A.) Step 2: Energy Supply and Planning Sides Survey to Electricity/Energy providers (Senelec, LPG distributors)
12 Study research/access to energy in periurban Dakar Malika Yoff Ainoumani 2 Dalifort Ben Barack Barack L6 Rail
13 Key Findings: Energy profile Energy Demand Side/Global Energy Profile of Urban Dakar Middle ground between rural profile & urban profile: With Modern forms of energy: - Electricity: lighting, refrigeration, audiovisual, water heating, ironing - LPG: cooking - Gasoline, Diesel: transport And Traditional forms of energy: - Wood & Charcoal: cooking and Kerosene: lighting Used in households and businesses Transition from traditional sources of energy to clean and modern energy types The extent of the transition depends on many factors: Availability, Accessibility, Affordability, Acceptability
14 Key Findings: Access to Electricity Periurban Zone Rail Barack L6 Yoff Ainoumana Ben Barack Malika Daliford Electrification Rate (%) Distance to City Centre Close Close Far Close Far Far Close No correlation between electrification rate and distance to the grid Correlation between financial Capacity and Access High rates of electrification that hide significant reliance on illegal connection In some cases higher than the Rate in Dakar (96%)
15 Key Findings: Access to Electricity 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15% 16% Ainoumana II Barack L6 0% Yoff Layene 25% 0% 17.50% 52.50% 67.50% Peri-urban Ben Baraq Malika Rail Daliford Area No power Ilegal connections Legal connection 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% Reason for lack of electric services in the Peri-urban households 68.97% 3.45% 3.45% 17.24% 6.90% Network Too Far Lack of Financial means Lack Interest High Connection Costs 0.00% Netw ork Too Far Lack of Financial means Lack Interest High Connection Costs Other Reasons Other Reasons
16 Key Findings: Access to Electricity Types of illegal connection Suspended 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 100% 50% 50% Barack L6 Ainoumana II 0% 30% 25% 43.00% 100% 57% 70% 75% Rail Malika Ben Baraq Peri-urban Underground Cables Suspended Cables Underground
17 Key Findings: Access to Electricity Connection fees for illegal connections In average: 48% do not pay Family connections/ solidarity Proportion depends on the slums surveyed 70% 60% 50% 40% 30% 20% 10% 40% 60% 67% 33.00% 67% 52% 48% 52.00% 48% 33.00% Connection Fee No Connection Fee The average connection fee: around $8 Vs $45 0% Barack L6 Ainoumana II Rail Malika Peri-urban Electricity use: Two types of payment 90% 80% 70% 82.0% 1- Agreed sum 2- By equipment: higher than the utility bill for the same service 60% 50% 40% 30% 20% 10% 60% 40.0% 33% 67.0% 18% 66% 17% 37.50% % 40%38% Agreed Sum By equipments Other Payment types 0% Barack L6 Ainoumana II Rail Malika Ben Baraq Peri-urban
18 Key Findings: Access to Electricity Productive use Average: 12.5% of households use electricity in small businesses 80 % of business are informal 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ben Barack Dalifort Yoff Malika Legally Connected Illegally Connected No Power % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 3.20% 96.8% 17.50% 82.5% Barack L6 Ainoumana II Productive usage of electricity 25% 75.0% Yoff Layene 22.50% 77.5% 7.50% 92.5% 5% 95.0% 2.50% 97.5% 87.5% 12.50% Daliford Rail Malika Ben Baraq Peri-urban Rely on Illegal connections through neighbors Connection fees: Similar to households Payment methods: 1- Agreed sum 2- equipment type Yes no
19 Major barriers to electricity access in Dakar Major barriers to energy access in periurban Dakar Barrier I: The lack of a proper definition and understanding of the real characteristics of periurban areas > institutional gap Barrier II: Land tenancy issues/illegal settlement >> illegal power connections Barrier III: The prohibitive connection cost for households located far from the grid (> 30 meters): up to US$ 650
20 Key findings: Barrier I Lack of a proper definition and a dedicated structure: 7 definitions found for Urban Dakar >> Institutional gap Urban Electrification is under the responsibility of the Utility Company (SENELEC) Rural Electrification falls under the Rural Electrification Agency (ASER) created during Power Sector reforms: Peri-urban areas: between the two - Left alone No specific policy arrangement
21 Key findings: Barrier II Land tenancy issues due to illegal settlement >>> Illegal connections to the grid For legal electricity connection in Periurban Dakar: - National or Foreign ID card - Address, phone number (house and work) - Lease or house ownership titles - List of electric devices in the house & their power requirement (Watt/kW). Illegal settlement leads to Illegal connections to the grid and higher electricity bills. 1 bulb (60 W) and 4 h/day lighting Electricity bill SENELEC: 967 FCFA/month (125 FCFA/Kwh) CFL (17W) =255 FCFA/month 1 Bulb 1200 FCFA/month via illegal connection / Average Periurban
22 Illegal connections in Dakar/Ariens
23 Illegal connections in Dakar/ undrground
24 Key findings: Barrier III The prohibitive connection cost for households located far from the grid The minimum connection fee required by SENELEC to establish an account is FCFA = US$ 45 (2008) when the household to be connected is 30 m or less from the existing grid For households located farther, the power utility adjusts the fee to the network extension cost. The extension cost can drastically increase the connection fee that can reach up to FCFA: US$ 650
25 Policy Options Peri-urban area Definition & Characterization Policy option 1: Mobilization of a consultation framework/forum - Consensus of all involved actors around the definition and a proper delineation of the peri-urban zones, develop a data base and GIS (Location of Peri-urban settlements) - Remove the confusion between Urban and Peri-urban areas - Define specific needs of peri-urban with transition from rural to urban energy profile - Help define targeted policy intervention for peri-urban Role of Renewables: should be considered in the consultations - Identify specific RE technologies to meet specific needs in periurban - Transition from fossil fuels to Renewables
26 Policy Options Access to electricity: Legalization of connections Policy option 2: to formalize, organize and upgrade the slums occupancy status in order to help poor peri-urban households have formal access through legitimate utility account. To increase the level of access to legal electricity at the utility tariff which is more advantageous than the tariff paid through illegal connection. A good practice that is already applied in this respect consists in delivering a «Temporary Id Card» for the Peri-urban residents to make them eligible to open legitimate accounts with the power provider! Role of Renewables: should be considered in the upgrading process Temporary electrification using decentralized PV systems
27 Policy options Access to Electricity: Alleviation of high upfront fees In the case where the periurban households are far from the grid (>30m) and where there is a necessity for additional extension work. Policy option 3: Payment of the connection fees through long term installments that can be afforded by the peri-urban poor, to be included in the electricity bill. With allocation of Governmental budget to contribute to the additional grid extension cost. Role of Renewables: Complementary renewable based electricity generation: households and businesses (+ Urban agriculture)
28 Policy policy options Access to Electricity: Electricity-based income generation Development of productive applications for electricity: Small scale productive units (Cold beverages, food conservation and processing, etc) to generate enough income to cover the electricity cost. Policy option 4: Financing mechanism for these applications are needed such as micro-credit arrangement where the households would get together in a micro-credit network to fund their own enterprises in turns. supporting policy option: to develop an information campaign to show the benefit of productive applications and its possible use as a mean to afford the electric bill. Role of Renewable Energy: Development of small enterprises for electricity delivery in periurban areas using solar energy
29 Urban electrification needs/options- Renewables Access to Electricity in Dakar has 2 main geographical aspects: (1) For legal settlement (2) For informal settlement 1- For legal settlement: Where electricity is provided by SENELEC The challenge is the security of supply to fulfill the electricity of a growing urban population and increasing demand for Electricity Option: Diversification of Energy sources: Renewables can play a major role as alternative energy Solar Thermal is viable in cities / Senelec present price for kwh Especially in new buildings, social housing Collective uses: Hotels, Hospitals, education buildings Solar PV for electricity generation can be viable for households located 30m and further from the grid/the Senelec connection fees reach US$ 650/household, for street lighting, urban agriculture needs (PV pumping) Solar PV for food processing i.e. Solar PV mills
30 Urban electrification needs/options- Renewables Access to Electricity in Dakar has two main aspects: 2- For Informal settlement/slums: Where access to Electricity can not be provided through SENELEC/Land tenure barrier Option: Alternative temporary to get access to electricity Renewables can play a major role: To dissuade illegal connection to the grid To insure safe and clean access to electricity in Dakar Solar PV: to meet electricity needs: households/small businesses, Streets Lighting Solar Therma: water heating
31 54 rue Carnot - BP 3370 Dakar - Senegal Tel / energy@orange.sn Web : News : Programme «Énergie, Environnement, Développement»
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