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of this fuel is diminishing fast in certain zones, however, as a result of over-exploitation, obliging women and children to cover ever greater distances to gather it. In addition, biomass’s low calorific yield greatly increases the cost of using it per calorie consumed. Poor conditions of combustion result not only in poor heat yield but also constitute a health hazard, contributing notably to indoor pollution, a source of serious respiratory disease. The low level of energy consumption is paralleled by limited use of electricity. The African continent has the lowest level of electrification in the world, lower than in southern Asia, Latin America and the Middle East. Low population density, combined with the preponderance of the rural population, is a major constraint since it makes the development of electricity infrastructures very costly and limits economies of scale. In addition, because of lack of maintenance, illegal supply tapping and inadequate investment, supply is not very reliable as is evidenced by the heavy losses in transport and distribution. The small size of the network and its poor general state are problems all the more difficult to overcome owing to the fact that African countries are subject to major budget restrictions. Faced with the alarming reality of the absence of a satisfactory energy supply, African countries have in the course of the last decade sought to reform the ownership modes, organisation and regulation of the energy sector. More than 30 African countries have, notably, embarked on programmes to open the energy sector to private operators. Although it is too soon to make a satisfactory evaluation, it would seem that these reforms have had limited results for the moment. In certain countries, the existence of reliable regulations has made it possible to attract investors and improve services to the population. In many others, incomplete processes have compromised the chances of success, bringing to the fore the crucial importance of the regulatory framework for the facilitation of transfers to the private sector. Past experiences underline the essential role of the initial stages of reform, which is to say the clear formulation of electricity policy setting out the guiding principles of reform programmes and the establishment of a transparent and independent body to oversee the market. The regulatory authority’s job is to ensure that terms and conditions are kept to, so that the firm operates effectively and widens access to electricity. This involves strategic price-setting both to protect consumers and to enable the company to make the investment needed to extend the grid. Only in this case has expansion of the electricity network been observed, as in Côte d’Ivoire. www.oecd.org/dev/insights National reform should also be accompanied by a cross- border approach. The nature of electricity projects, notably their size and the possibility of economies of scale they bring, give good reason to extend networks beyond national boundaries. A network interconnection is already effective in North Africa and under way in Southern Africa (Southern African Power Pool). Another is in the process of being finalised in West Africa (West African Power Pool). However, Central and East Africa are still very isolated. The encouragement of regional initiatives aimed at improving access to electricity is justifiably one of the fundamental propositions of the Nepad energy initiative, which looks to the INGA project to provide interconnectivity. Here again, the creation of an adequate common regulator is a crucial condition of success. The adoption of national reform aimed at rationalising the activity of the historic operators and the organisation of regional concertation for the development of large-scale projects are necessary conditions for improving and extending existing networks. However, if the high population density of the cities makes it probable that they will have priority for future electrification programmes, nearly half the African population can still be expected to continue to live in rural areas in 2025, with little or no access to national electricity networks. Making available to these populations reliable and efficient energy modes requires a search for flexible and innovative local solutions. This is a necessary condition for improving the lives of these populations but also for exploiting in a sustainable and durable manner the forest resources of the countries. This will certainly mean more efficient use of biomass, notably through less polluting technologies but also through the use of new energy sources such as LPG (liquid petroleum gas) for households. In the agricultural domain, lightweight, off- network or micro-network production systems could be used such as micro hydraulic irrigation projects, pumping systems powered by solar or wind energy and the use of agricultural residues for the energy generation. Some of this could be done by Small and Medium Enterprises, which would boost the local private sector. The success of these approaches requires the creation by the authorities of integrated energy policies which encourage improvement of existing structures and infrastructures, promotion of new initiatives in favour of the most deprived populations and regional co-operation. Huge investment is needed to increase energy supply. The use of private initiative when the benefits to be had are mutual is certainly one dimension of the solution. But it will not be enough to make up for sparse local resources, especially to pay for major infrastructure projects and extending rural electricity supply. Reducing poverty is the international community’s declared priority, so it is vital that boosting energy supply once again becomes a priority for bilateral and multilateral funding agencies. Policy Insights, No. 8, May 2005 January 2004 Combining Local, National and Regional Efforts to Improve Final Energy Supply OECD Development Centre Policy Insights, No. 1, March 2004 3 Policy Insights #8, ©OECD 2005PDF Image | Energy and Poverty in Africa
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