Urbanization and Energy Nexus

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1 BANGKOK JUNE 2016 Urbanization and Energy Nexus Avi Sarkar UN-Habitat 1

2 SDG 7 and 11 Ensure access to affordabe, reiabe, sustainabe and modern energy for a Make cities incusive, safe, resiient and sustainabe 2

3 Presentation outine Background: state of urbanization, chaenges and opportunities Case of Sums Road ahead: Habitat III New Urban Agenda 3

4 Urbanization and Urban Energy Poverty 10 % of the goba popuation ived in cities in 1900; 50% of peope ived in cities in 2007; 75% of the popuation wi be iving in cities in Out of the 3.5 biion peope iving in cities today, over one biion ive in informa settements and are mainy urban energy poor. 4

5 Rapid Urbanization is taking pace in deveoping countries % urban popuation Word More deveoped regions Less deveoped regions Least deveoped countries Sub-Saharan Africa Asia Latin America and the Caribbean

6 Chaenges 6

7 Chaenges Increasing energy demand: As the popuation increased so is the demand for more energy. High dependency on energy imports (mainy fossi fues: oi, coa, gas): Vunerabiity to price fuctuations (oi price rose from $14 in 1999 to $140 in 2008, and $30 in 2016) Imported infation and price instabiity for goods and services High prices for modern energy services Power generation using (imported) fossi fues: High prices for eectricity and for productive activities and the economy 7

8 Chaenges Inefficient use of energy: No consideration of energy efficiency: Architecture and buidings that are not adapted to their respective cimates, Wastage of eectricity and other modern energy sources through od and inefficient appiances, Power transmission osses, (20 30 % ) Absence of adequate urban panning: Urban spraw with ow density deveopment eading to high energy demand, need for private cars, increased air poution. Proiferation of unpanned settements mainy in deveoping countries. Outdated city master-pans Traffic congestion and bockage No roads and poor streets patterns.

9 Chaenges Lack of Energy Access: (1.2 biion peope without eectricity: Y2013) Limited access to modern energy (eectricity and gas) in deveoping countries: Per capita eectricity consumption remains very ow in deveoping countries and LDCs. Extensive use of firewood and charcoa: Respiratory diseases and deaths especiay among women and chidren (4.3 miion deaths per year gobay) Forrest depetion, soi erosion and desertification. Use of kerosene for cooking and ighting: In-door air poution: respiratory diseases and deaths Low eve of productive activities after dark. 9

10 Chaenges: Human heath care With increasing Urbanisation and Motorisation, heath probems wi increase Air poution has emerged as a major risk to heath in urban areas (WHO, 2012): 3.7 miion deaths/year from Ambient Air Poution; Need for cean Mass Rapid Transit (e.g. Light Rai, e- trams, etc.) 10

11 Focus: Sums grow as cities grow There are more than one biion peope iving today in sums, and it is expected to reach 1.4 biion in 2020 The projected growth is 27 miions peope a year ( ) Sum growth represents 38% of the word s urban growth Urban growth Sum formation Sub-Saharan Africa 4.6 % 4.5 % Southern Asia 2.9 % 2.2 % Western Asia 2.9 % 2.7 %

12 Eectricity Access Urban Rura East/Southeast Asia 99 % 81 % South Asia 68 % 30 % Sub-Saharan Africa 51 % 7 % Midde East/North Africa 99 % 77 % Latin America 98 % 51 % Eectricity Access by the sum dweers Sum dweers have no ega access to eectricity; They are iegay connected; They pay high fee through iega power vendors; They spend on average 10-15% of income on energy; Unsafe connections with fire hazards and eectrocutions; Disconnection can happen any time.

13 Opportunities 13

14 Urban Energy Opportunities Increasing access to modern, cean and reiabe energy services in urban areas with particuar focus on pro-poor interventions Promotion of renewabe energy technoogies Mainstreaming energy efficiency measures into housing poicies, buiding codes and buiding practices Capacity deveopment in energy panning in urban areas 14

15 Opportunities: Renewabes, technoogies, poicies Untapped Renewabe Energy Resources: Huge potentias of: soar, wind, biomass, hydro, geotherma etc. Municipa soid and organic waste to energy Decreasing cost of renewabe energy technoogies and more investment funds avaiabe: The cost of soar and wind energy technoogies has decreased on average by 75 % in the ast 5 years; There are increasing avaiabiity of innovative financing mechanisms for renewabes. Technoogy innovation (R&D): More efficient appiances are avaiabe, Efficient energy generation equipment deveoped. Enabing Poicies that support RETs: Goba support SE4ALL. SDGs Goa 7, poitica wi. 15

16 Opportunities: Rapid Urbanisation Transformation of rura areas into urban: Opportunity for new urban panning Opportunities for cities extension Avaiabiity of space to promote socia and economic mix Panning for proper mobiity and pubic transportation system Opportunity for eectric mobiity Energy Demand Management: Energy Efficiency in Buidings, Industry, Transport etc. (there is a potentia of 50% energy savings) The Green Economy 16

17 Case of Sums: Advantages of Sum Eectrification Reaching more peope with ess investment given the high density of the popuation; New customers are wiing to pay for a safe service through a more fexibe payment system; Power utiities reduce their heavy osses from iega connections. Government contributes with coherent ega framework for egitimize consumers and connections. Chidren can read more in the evening; Safety and security are enhanced;

18 Case Study: Sum Eectrification in Ahmedabad, India Ahmedabah Eectricity Company AEC and two oca NGOs have impemented a piot sum eectrification project in an informa settements. The program was financiay support by USAID; The government provided a No Objection Certificate (NOC) to sum dweers; 5000 houses were connected with ega meters and CFL Connection cost were subsidized in part through cost sharing between: USAID, AEC and the househods Ony sums on state ands with upgrading program coud benefit from the project.

19 Sum Eectrification in India Access to eectricity has dramaticay increased the quaity of ife in sum communities. The utiity company provided outside service and a connections; The NGOs were invoved in awareness raising, distribution, bi coection, and financing; The No Objection Certificate provided by the Government was necessary to avoid the issue of and tenure barrier. As a resut: more househods have access to affordabe power suppy; Safety measures are put in pace; Socia and economic barriers were overcome through awareness, subsidy and ega frame work. Eectricity theft was reduced.

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21 Habitat III Regiona Report Asia-Pacific (UN-Habitat Regiona Office for Asia and the Pacific and UN-ESCAP) Key Statements Urbanization and Environment, Cimate Change & Disasters Rapid urban deveopment and growth over recent decades has resuted in environmenta degradation, exposure to poution and disasters, and vunerabiity to cimate change. Goba poitica commitments in Sendai and Paris now need to be transated into concrete and immediate action at the oca eve. Transforming the deveopment trajectory to a ow-carbon, resource-efficient and resiient future requires concrete and coordinated nationa and municipa poicies and financing.

22 22 Thank you