Worldwatch Institute Reports Renewable Energy Alleviates Poverty

Renewable energies can alleviate poverty in developing world, says report

NEW YORK, New York, US, September 28, 2005 (Refocus Weekly) A number of renewable energy options that currently are in wide use are “viable options” for poverty alleviation in developing countries and can contribute towards meeting the goals of the Millennium Development Goals.

“Access to essential energy services will need to increase for the MDG targets to be met,” concludes ‘Energy for Development: The Potential Role of Renewable Energy in Meeting the Millennium Development Goals’ produced by the Worldwatch Institute for the Renewable Energy Policy Network for the 21st Century (REN 21). “In some instances, renewable energy technologies can meet needs that conventional approaches cannot; in other circumstances, RETs can provide comparable services more readily than conventional services, and at comparable costs.”

The report was released in conjunction with the World Summit at the United Nations, and uses 26 case studies on solar, wind, small hydro, biogas, ethanol and biodiesel to demonstrate renewable energy options that currently are “in wide use in some regions and that are now ready for large-scale introduction in many areas of the developing world.” As their costs have declined as their reliability has improved, “renewable energy technologies have often emerged as more affordable and practical means of providing essential energy services.”

“Introduction of RETs is frequently hindered by their high cost and the perception that they require heavy government subsidy,” the report explains. “While high initial costs are a reality in many circumstances, this is frequently exacerbated by the lack of a competitive energy market and the large subsidies provided to conventional energy systems.”

“The investment patterns of governments and international finance institutions, regulatory frameworks oriented to conventional energy sources, externalization of costs and benefits, and governmental purchasing policies that favour conventional sources are among the obstacles to advancing renewables,” it adds. “If these barriers are overcome and renewable energy production is scaled up, the cost of the new energy options will decline significantly.”

The cost-per-unit of an energy technology and its ability to provide essential energy services “are the most important indicators of its suitability for poverty alleviation,” it adds. “The challenge is to create a policy framework that allows renewable energy to be introduced where it makes long-term economic sense, and to allow poor countries to benefit from the declining cost curves that characterize renewable energy markets in many industrial countries.”

“Delivering clean, efficient, reliable and renewable energy to developing countries is absolutely critical for poverty reduction and for meeting the internationally agreed development goals,” says Klaus Toepfer of the United Nations Environment Programme (UNEP), who attended the release of the report. “Every time oil surges over $50 a barrel, the overseas aid of many African countries - money intended for health care, schools and other vital services - is gobbled up in paying the extra fuel costs. It is also vital because, over the next few decades, the world is likely to invest some $16 trillion in new energy infrastructure; we need to ensure that this is low-carbon technology that gives us a better chance to fight climate change.”

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