Picture an island in Bangladesh that is so remote that there is no way the traditional electricity could reach it. Not now, and probably not anytime soon. That was the situation in Monpura just a few years ago – but not today.
Today, Monpura is thriving, thanks to solar power. Markets are abuzz, households can power TVs, fans and even refrigerators, and streets are lit up at night. In fact, solar home systems have helped take electricity to more than 20 million people in rural Bangladesh.
450 million ceiling fans already in use, 40 million new ones sold every year?
350 million fluorescent tube lights already in use, 10 million new sold every year?
30 million air conditioners already in use, three million new sold every year?
If you guessed India, you are right.
With a population of about 1.2 billion, India is one of the largest consumer markets in the world. So it’s no surprise that household appliances account for several gigawatts of electricity usage across the country. As India’s middle class grows and people move from villages to towns and cities, electricity usage is only increasing. In fact, hundreds of millions of electric appliances will be added over the next few decades. This poses a serious challenge for India’s energy security since there already are electricity supply shortages, which often lead to chronic outages and blackouts. The surge in household appliances is also a climate change challenge—India, the world’s third-largest CO2 emitter, is predicted to continue increasing its greenhouse gas emissions at least until 2030.
When you ask young people from developing countries what they want for their country, they often say opportunity. The next generation wants jobs and knowledge; they want to be connected to the global economy.
Extractive industries can foster these types of opportunities through investment in skills training and transfer of technology to local workers and companies. These technical skills are demanded in the global marketplace today and empower workers to expand their horizons and lower their risk of unemployment.
We are discussing these issues today at a “Reconciling Trade and Local Content Development” conference we are co-hosting with the Mexican Ministry of Economy. This event aims to share knowledge on how investment in extractive industries can be leveraged to generate opportunities for economic diversification and employment.
When extractives companies include local business in their supply chain they foster sustainable growth and help end poverty. The most valuable contribution to long term sustainability comes from the ability of extractive industries to generate benefits through productive linkages with other sectors. The International Finance Corporation (IFC) helped make this happen in Barmer, India, where we supported a Skill Development Center that trained 7,000 people to work in the operations of Cairn Energy. Not only did this training create direct job opportunities for the local population, but the acquired skills fostered the creation of an entire eco-system of small and medium-size enterprises that provided products and services to the oil company and related sectors.
So, how can we determine and identify who has electricity and who doesn’t? What if we had the technology and tools to help us see lights from space every night, for every village, in every country? We could then closely monitor progress on the ground. We could even plan and optimize policies and interventions in a different manner.
In 2015 the world saw great momentum for climate action, culminating in a historic agreement in December to cut carbon emissions and contain global warming. It was also a year of continued transformation for the energy sector. For the first time in history, a global sustainable development goal was adopted solely for energy, aiming for: access to affordable, reliable, sustainable and modern energy for all. To turn this objective into reality while mitigating climate change impacts, more countries are upping their game and going further with solar, wind, geothermal and other sources of renewable energy. As we usher in 2016, these stories from around the world present a flavor of how they are leading the charge toward a climate-friendly future.
Once upon a time, there was a little boy named Bala who was born in a small village in Pavagada Taluk, Karnataka, where, agriculture was the main source of income—much like in many other villages in India. But as he grew up, he saw most of his friends choosing to move to cities, because scant rainfall had made it impossible to pursue agriculture and make enough money to make ends meet at home. Village elders turned to superstition to explain the phenomenon, while others blamed climate change for the drop in rainfall. Eventually, Bala also moved to the city of Bangalore, but always dreamed of bringing prosperity back to his village.
Looks like Bala’s dream will come true in 2016. Early next year, India’s Prime Minister Narendra Modi will break ground for one of the largest solar parks (2 GW) in the world—in Pavagada Taluk.
It’s a fact: Indoor air pollution from cooking with solid fuels including wood, charcoal, coal, animal dung, and crop waste in open fires and traditional stoves is the fourth leading cause of death in the world, after heart and lung disease and respiratory infection.
Nearly 2.9 billion people, a majority of whom are women, still cook with dirty, smoke and soot-producing cookstoves and solid fuels. That’s more people using these dangerous appliances than the entire populations of India and China put together.
This has to change. And change is happening as I heard from the various discussions that took place in Accra, Ghana at the Clean Cooking Forum 2015 last week. Hearing the Minister of Petroleum of Ghana and the Deputy Minister for Gender and Development, I realize that the ambition to provide clean cookstoves and cleaner fuels to the households who need it most is definitely there. But transforming ambition into reality is a challenge. This is true not just in Ghana but in many other parts of the world.
I have been thinking a lot about this lately, especially as we come up on the climate change conference (COP21) in Paris, where world leaders will gather to reach a universal agreement on mitigating the effects of climate change. Adopting clean energy sources is key to reach that goal. To that end, the UN’s sustainable energy goal (SDG7) that aims to ensure access to affordable, reliable, sustainable and modern energy for all also aims for bringing clean cooking solutions to the 2.9 billion who do not have it today.
If God appeared in the dream of a paddy farmer in India’s West Bengal and said, “You have made me happy with your hard work, make any three wishes and they will be granted,” the farmer will say “I want rain, rain, rain.”
That thought kept playing over and over in my mind, after interacting with farmers in the paddy fields of the Siliguri and Jalpaiguri districts of West Bengal. Located in India’s northeast, the area is famous for its scenic beauty, tea plantations and paddy fields. While the region’s fertile soil makes it ideal for a variety of crops, it is almost entirely dependent on rainfall for irrigation, like anywhere else in the world.
To reduce their dependence on the monsoons, India’s farmers have taken 12 million electricity connections and 9 million diesel pump sets with which they pump up groundwater for irrigation.
Although agriculture’s share of India’s economy is declining—it contributes to less than 15% of India’s GDP—it still employs 50% of the country’s workforce. Not surprisingly, perhaps, up to 20% of all the electricity used in India is for agriculture, mostly for irrigation. In some states, this can account for as much as 30-50% of all the electricity used in the state.
There are many states where power for agricultural purposes is highly subsidized, and this, combined with an unreliable supply of electricity, often causes farmers to leave their pumps on all the time. This wastes both electricity and water, with too much energy being used and too much groundwater being extracted, often way more water than needed.
Since more than half of India’s cultivated land is yet to be irrigated, a business-as-usual scenario will lead to a huge rise in India’s energy needs for agriculture alone.
But there is an alternative—solar energy.
With decreasing solar modules prices (70% in the last 4 years), solar pumps are fast becoming a viable financial solution for irrigation.
However, there are several questions about the use of solar pumps that need to be answered:
Won’t solar pumps only make farmers more lax about using energy resources and wasting groundwater?
Recognizing this gap is one thing. But having the working partnerships, monitoring tools and financing to move forward is another matter. The great news about the Energy SDG is that these pieces are finally falling into place.
A major factor in this momentum is Sustainable Energy for All, an initiative set up after Rio+20, the UN's 2012 Conference on Sustainable Development in Rio de Janeiro. The SE4All initiative has high-level leadership and strong political support. Co-led and chaired by UN Secretary General Ban Ki-moon and World Bank Group President Jim Yong Kim, it has quickly brought together the public sector, private sector and civil society around three ambitious goals: ensuring universal access to modern-energy services; doubling the rate of improvement in energy efficiency; and doubling the share of renewable energy in the global-energy mix.