| Literature DB >> 32159025 |
E Puzzolo1,2, H Zerriffi3, E Carter4, H Clemens5, H Stokes6, P Jagger7, J Rosenthal8, H Petach9.
Abstract
Promoting access to clean household cooking energy is an important subject for policy making in low- and middle-income countries, in light of urgent and global efforts to achieve universal energy access by 2030 (Sustainable Development Goal 7). In 2014, the World Health Organization issued "Guidelines for Indoor Air Quality: Household Fuel Combustion", which recommended a shift to cleaner fuels rather than promotion of technologies that more efficiently combust solid fuels. This study fills an important gap in the literature on transitions to household use of clean cooking energy by reviewing supply chain considerations for clean fuel options in low- and middle-income countries. For the purpose of this study, we consider electricity, liquefied petroleum gas (LPG), alcohol fuels, biogas, and compressed biomass pellets burned in high performing gasifier stoves to be clean fuel options. Each of the clean fuels reviewed in this study, as well as the supply of electricity, presents both constraints and opportunities for enhanced production, supply, delivery, and long-term sustainability and scalability in resource-poor settings. These options are reviewed and discussed together with policy and regulatory considerations to help in making these fuel and energy choices available and affordable. Our hope is that researchers, government officials and policy makers, and development agencies and investors will be aided by our comparative analysis of these clean household energy choices. ©2019. The Authors.Entities:
Keywords: clean cooking; clean energy; clean fuels; fuel supply; household air pollution
Year: 2019 PMID: 32159025 PMCID: PMC7038875 DOI: 10.1029/2019GH000208
Source DB: PubMed Journal: Geohealth ISSN: 2471-1403
Production and sourcing of clean household fuels
| LPG | Biogas | Alcohol fuels | Compressed biomass pellets | Grid electricity | Photovoltaic electricity | |
|---|---|---|---|---|---|---|
| Production | By‐product of natural gas extraction and oil refining. Production starts at gas and oil wells where liquids are separated. | Animal and vegetable waste converted, typically in a household scale biodigester, to methane and piped directly into household appliance. |
| Wood, straw, sawdust or other wood‐ or plant‐based material, compressed using mechanical equipment. | Generated by electric power plants using natural gas, coal, solar, wind, hydro or other sources of energy. | Generated by photovoltaic cells. |
| Sourcing | Local when LPG produced domestically; most often imported through complex supply chains. | Highly localized. | Local when existing feedstock available, often produced from residuals; imported in some cases. | Local when existing feedstock available, often produced from residuals; imported in rare cases. | National scale infrastructure for grid connections; more localized sourcing for off‐grid unless distributed generation feasible. | Household level or scaled to municipal installations of smaller or larger sizes. |
Supply chain factors for clean household fuels
| Factors | Description |
|---|---|
| Feedstock supply availability | Typically, production costs are highly dependent upon feedstock availability (procurement and transportation, as applicable) as well as feedstock conversion to fuel. Fuel production costs are influenced by installed technology, automatization and economy of scale. |
| Feedstock price variability | Lack or scarcity of feedstock impacts the full supply chain and ultimately the ability of end users to rely on such fuel for their daily energy needs. When local feedstock and production become constrained, imports may be required to meet demand. To reduce risks due to importation, import agreements and mechanisms to mitigate fuel prices are necessary. |
| Safety | To ensure a consistent, high level of safety for operators and end‐users, governments, local authorities and companies must define and enforce national standards, laws and regulations (including licensing as applicable), as well as inspections and operational practices for equipment. |
| Accessibility and last‐mile distribution | Reliable and extensive distribution infrastructure (e.g., power grids or roads) is a prerequisite for creating access to most clean fuels. Decentralized solutions (biogas, PV, small pellet plants or distilleries) are better suited for last‐mile distribution in rural settings but require access to operational and maintenance services. In addition, households need access to points of sale where the fuels can be purchased. Long distances to points of sale, especially in rural areas, can limit adoption and widespread use. Home delivery for fuels like LPG and pellets is practiced in high‐population‐density areas. |
| Scale‐up potential | Some fuels are directly linked to national decision‐making and infrastructure development (e.g., LPG, grid electricity, ethanol production) while others may rely on local decision‐making and smaller scale infrastructure and operations (e.g., pellets, biogas, ethanol). Potential to reach scale depends on multiple factors, including feedstock availability, economically viable and reliable operational production and distribution, as well as appropriate policy (see Section |
| Convertible currency or foreign exchange | Where fuel, appliances and accessories must be imported, a stable, convertible currency, or government commitment to providing foreign exchange, is a factor in ensuring continuous supply. |
Contextual factors of the enabling environment
| Factors | Description |
|---|---|
| Policy | The development of a comprehensive national energy policy framework, including household energy needs, requires cooperation across government ministries (e.g. energy, finance, health, environment, agriculture, petroleum, etc.). Policies need to address rules, standards, and best practices to support long‐term fuel market expansion. Policies supporting a ‘fuel of choice for the household sector' can accelerate market expansion and meet demand. |
| Regulation, standards, and certification | Regulation, certification, standards, and enforcement of rules are needed to promote sustainable supply and to reduce safety risks in handling/distribution and use. Regulation needs to be customer‐oriented, but still stimulate competition, and appropriate for the range of technologies, fuels and business models that can meet customer needs. At the same time, certain fuels need strong law enforcement to eliminate illegal practices (e.g., LPG, ethanol, electricity). |
| Infrastructure financing | Financing mechanisms are required to support physical infrastructure development and distribution. Consumer loans may also be helpful. Requirements for capital financing include: (i) lending institutions with capacity to provide mid to longer term finance for the construction of production facilities (e.g., terminals, distilleries, pelletizing equipment, biodigesters, grid connections etc.); (ii) multilateral banks prioritizing fuel projects through targeted lending and guarantees; (iii) creditworthy businesses with convincing business cases and written business plans to be eligible. In Africa, commercial banks and microfinance finance institutions (MFI) may have more reliable income from larger clients and may be reluctant to lend to consumers or households. |
| Capital cost customer financing | The stoves/equipment that use clean fuels also impose up‐front costs to the consumer that should be anticipated in comprehensive pricing supports. Low income households may need supportive financing to afford upfront and ongoing expenses. Examples of customer financing include: free test periods, warranties, leasing/credit offers, loyalty programs and more innovative models (e.g., Pay‐as‐You‐go). |
| Fuel pricing policies (including taxation and subsidies) | The purchase of any fuel, with the exception of domestic biogas, imposes a financial cost that can be significant when compared to household disposable income. The costs are highly dependent upon the national sourcing strategy and available natural resources. Transportation and distribution costs add to the final price and can be higher for rural users. Price variability and market development can be mediated by changing taxes, introducing price‐regulation mechanisms or subsidies. Market balancing may be necessary (e.g., imposing or enforcing taxes and regulations on fuelwood and charcoal). Competition for fuels in other markets such as transportation or industry can also influence fuel price. |
| Marketing strategies | Effective marketing provided by companies/fuel providers/the Government can contribute to increae customer awarnesses and overall fuel uptake. Promotion and education campaigns conducted in local languages and dialects can reach a greater number of households and a combination of televesion/radio adverts as well as pulbicity material has succesfully been employed in national‐scale programs (e.g. India, Indonesia). |
| Customer support | Customer support systems for operations and maintenance are essential for continued and sustained use of clean fuel. Decentralized solutions such as biogas and PV or small‐scale pellets or distilleries may be better suited for last‐mile distribution in rural markets, but require access to maintenance (e.g., biogas, ethanol, pellets) and storage services (e.g., PV electricity, ethanol, pellets). Equipment warranties and guarantees improve continued technology use. Industries/companies with ‘customer‐oriented focus' tend to be more successful. Overall quality control and standards are important to create consumer trust in the market. |
| End‐user awareness and behavior change | Socio‐cultural behavior and awareness of clean fuel options (including how to access clean fuels) are necessary critical elements for clean fuel take up. Furthermore, gender and the effects of gender on household decision‐making should also be considered in program and policy planning. |
Figure 1‐ Summary factors influencing scale‐up and uptake of clean household energy
‐ Key questions and criteria for sustainable clean household fuel scale‐up
| 1. Analysis of initial conditions of the energy market | 2. Economics of providing energy to the country for the household sector |
|---|---|
| 1.1What are the present and projected household energy needs of the country, and their spatial and temporal patterning, under low/medium/high growth assumptions? | 2.1 What are the projected costs to set up or enhance a clean fuel supply chain (from production to distribution)? |
| 1.2What are the present sources of household energy and what are the present and projected economics of providing such energy? | 2.2 What are the expected patterns of national growth and urbanization and how might those patterns impact scaling of the fuel supply (local, regional, national)? |
| 1.3What are the present planning, data gathering, and decision‐making capacities of the country? | 2.3 Who will provide the capital to build the supply infrastructure (e.g., private, public, donor)? What returns to capital investment are expected? |
| 1.4Is civil society aware of the energy issues (and associated health and environmental impacts) and is there demand for cleaner energy currently? | 2.4 Are fuel subsidies or other finance vehicles necessary to reach low‐income populations? What pricing mechanisms are necessary for different energy sources? |
| 1.5Is there an existing distribution system for a certain fuel, either by itself or linked to another commodity? For bio‐based fuels, what is the source of feedstock and will it be limiting? | 2.5 How can this transition to clean fuels be designed to minimize vulnerability to international energy pricing volatility and over what time frame should this be considered? |
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3.1 What is the household awareness and demand for clean cooking fuel(s)? Will demand generation or behavior change be necessary to gain adoption of new fuel(s)? What gender dynamics would determin intra‐household decision‐making on clean cooking choices? | 4.1 What are the existing government policies that would establish the regulatory environment for the fuel? |
| 3.2 What are the levels of actual and perceived affordability of household energy for cooking, lighting, and heating in urban and rural areas? | 4.2 Are relevant laws and regulations for the fuel adequately enforced? |
| 3.3 What is the knowledge of and access to financial options for households to adopt the clean fuel including both initial equipment and/or ongoing fuel costs? | 4.3 Can lack of proper enforcement create a threat to sustainable market expansion? How can this threat be mitigated? |
| 3.4 What incentives for last mile‐distribution would broaden the geographic reach? |
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| 3.5 What is the financial infrastructure and maturity of financial markets, and associated market interest rate for (small) loans? | 5.1 What strategies will reduce equity gaps in the availability and use of the clean fuel? Will different fuels or supply strategies be promoted for different income or geographic groups? |
| 3.6 What are secondary clean fuel choices and new technologies that are appropriate for this market and provide multiple clean fuel and cooking options for households? | 5.2 What populations will have lowest access to the clean fuel, and how will these populations be specifically included? |
| 3.7 What communication strategy will be necessary to build awareness of clean fuel adoption and use? |
5.3 Would a concerted stakeholder engagement process enhance equity and policy or program design? |
| 3.8 What distribution, finance and marketing strategies can be employed to ensure that women have an appropriate role in household choices? | 5.4 How can programs and policy best ensure that the needs of women, who have the greatest stake in their design and execution, be met? |