African Energy Policy Research – serie

Africa has been experiencing higher rates of urbanization than any other continent, and today about one-third of the continent‘s population live in urban areas. But studies of energy services for urban residents, especially the poor, are still rare. The supply of electricity to poor city dwellers has not kept pace with urbanisation: in 1970 some 40 million had no access to electricity; by the year 2000 there were over 100 million. The urban poor continue to rely on wood fuel, charcoal, kerosene and dung cakes for energy, with all their environmental drawbacks. This book examines the affordability of modern energy sources for the poor; the relevance of energy subsidies; the impact of subsidies on public finances; and how electricity tariffs affect the operations of small and medium enterprises, the main source of livelihood for the majority of the urban poor outside the formal economic sector.

Attracting private investment and delivery of services to the poor majority are two of the major goals for reforming and regulating the power sector in sub-Saharan Africa. This book believes the important determinants of new investment in the electricity industry are the licensing process and the tariff regime.If the licensing process is to attract private investors, the procedures must be clear and must function efficiently and transparently, and the tariff regime reflect actual costs. The rationale for attracting private investment is straightforward -- the inadequacy of existing power systems in the region to meet demand. In many countries, frequent power cuts linked to inadequate electricity generation capacity are the norm rather than the exception.The rationale for considering the plight of the poor is based on both ethical and sustainability considerations. In ethical terms, access to energy is a fundamental human right in the context of social justice. In sustainability terms, a reformed private-investor-dominated power sector that does not recognize the plight of the poor may represent sound economics yet prove to be socially and politically unsustainable. It is therefore necessary to ensure that the recommended regulatory reforms are sensitive to the needs of the poor majority.This volume examines the extent to which the twin goals of attracting investment and providing energy to the poor are addressed by the existing legal and regulatory framework. By studying six countries in the east and southern African region, some helpful lessons worth sharing with other African countries are learned.

Africa has been experiencing higher rates of urbanization than any other continent, and today about one-third of the continent's population live in urban areas. But studies of energy services for urban residents, especially the poor, are still rare. The supply of electricity to poor city dwellers has not kept pace with urbanisation: in 1970 some 40 million had no access to electricity; by the year 2000 there were over 100 million. The urban poor continue to rely on wood fuel, charcoal, kerosene and dung cakes for energy, with all their environmental drawbacks.This book examines the affordability of modern energy sources for the poor; the relevance of energy subsidies; the impact of subsidies on public finances; and how electricity tariffs affect the operations of small and medium enterprises, the main source of livelihood for the majority of the urban poor outside the formal economic sector.