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Household fuels - economics, health and safety

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Make 5kW cheap electricity available for an hour or so each day ... Gas-fired stations could resolve this. Requires yet further extensions to grid ... – PowerPoint PPT presentation

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Title: Household fuels - economics, health and safety


1
Household fuels - economics, health and safety
  • Philip Lloyd George Tatham
  • Energy Research Institute Independent
    consultant
  • plloyd_at_freemail.absa.co.za georget_at_jaywalk.com

2
Vision
  • Everyone should be able to cook and keep warm
    without threats to their health and well-being

3
Goal and Objective
  • Our goal is to understand the economics of the
    energy needs of rural households, in the light
    of
  • The external costsa arising from health and
    safety
  • The problems of delivery
  • Our objective is to help decision-makers develop
    policies which will minimise the total costs

a) External costs described later
4
Todays Situation I
  • Electricity has reached most urban and semi-urban
    households
  • Low-income households use an energy mix in which
    electricity plays a minor role
  • In low income homes, the thermal needs cooking
    and space heating are met by fuels with high
    external costs

5
Todays Situation II
  • The reason we concentrate on the thermal needs is
    because these are the ones which use most energy

6
Todays Situation III
7
Todays Situation II
  • The reason we concentrate on the thermal needs is
    because these are the ones which use most energy
  • Most households need lt 1000MJ/month
  • This is equivalent to lt 9kWh every day
  • But as electricity is often efficient than other
    energy sources, 3-5 kWh would be enough

8
Cooking 100 000s households
9
Heating 100 000s households
10
Summarising today
  • In households which cannot afford or are out of
    reach electricity, thermal needs are met by
  • Wood and paraffin
  • Except, in areas close to mines, by coal.
  • The average low-income house needs 1000
    MJ/month, equivalent to lt10kWh

11
How the fuels compare
  • We now look at each fuel, and compare the pros
    and cons of each
  • The external costs largely arise from the cons
  • They are the costs born by society rather than by
    the user, and not included in the cost of the fuel

12
Wood
  • Primary fuel in KZN, E Cape Northern P
  • Low cost
  • Renewable
  • Cheap appliances
  • Inefficient
  • Emits particulates (smoke) respiratory illnesses
  • Burns
  • Labour cost
  • Deforestation

13
Paraffin
  • 600 000 t/a
  • Major in KZN, E Cape, Gauteng, NW, Free State
  • Significant in W Cape, Northern, Mplanga
  • Cheap appliances
  • Energy swops
  • Multipurpose
  • 145 000 children drink, 55 000 sick, 4000 die
  • 46 000 fires, 50 000 burns, 65 000 homes
  • 63 of burns from appliances exploding
  • Incendiary
  • Use of IP probably causes severe respiratory
    problems
  • Cross-contamination

14
Paraffin Appliance I
15
Paraffin Appliance II
16
Paraffin Appliance III
17
Paraffin cost chain
Street
Price controlled to stockist level street price
varies up to diesel price
18
Paraffin external costs
lt600 million litres sold to domestic market
  • Poisoning
  • Burns
  • Houses
  • R500m/a
  • R1170m/a
  • R1300m/a
  • Total R3000m/a
  • External costs gt R5/l
  • If respiratory effects proved, external cost
    could increase significantly

19
Coal
  • Major in Gauteng, KZN, Free State, Mplanga
  • Distribution creates jobs
  • Multipurpose, including refuse incineration(but
    less than paraffin)
  • Appliances costly /or inefficient
  • Smoke dirt
  • Ash disposal
  • Respiratory disease
  • Asphyxiation, 500/a

20
Coal appliance
21
Coal appliance II
22
Coal distribution
23
Coal cost chain
Street
24
Coal external costs
  • Approximately 3 million in close proximity
  • Asphyxiation by CO 500 deaths/a
  • Respiratory effects probably shorten lives of 35
    000 by 15 years
  • Total costs R3450m/a
  • 1 million tons sold annually
  • External cost R3450/t

25
Gas
  • Small player, used particularly for cooking, in
    most provinces
  • LPG main thermal fuel in other developing
    countries
  • Very very safe
  • Low emissions
  • Costly market imperfections!
  • Relatively costly appliances
  • Large investment in cylinders deposit
  • Does not allow swops

26
Gas cost chain
Street
27
Gas external costs
  • Implication in fires and burns 2 of that of
    paraffin
  • No respiratory or poisoning effects
  • Total external cost ltR60 million/a
  • 96 million litres (62000t) LPG to low income
    market (2000)
  • External cost of ltR0.70/litre

28
Dung other biomass
  • Widespread significant in most provinces,
    particularly for heating
  • Cheap
  • Some particulates

29
Summary of costs
30
Available Options I
  • Make 5kW cheap electricity available for an hour
    or so each day
  • Would load Eskom demand excessively
  • Gas-fired stations could resolve this
  • Requires yet further extensions to grid
  • Possible cost R15bn plus R500 million/a for 5
    years

31
Available Options II
  • Enforce rigorous standards for safe paraffin
    appliances, with subsidy to assist purchase
  • Difficult to police change
  • Would have little impact on e.g. poisoning
  • Probable costs R2bn capital, R350m/a for 5 years

32
Available Options III
  • Reduce external costs of coal by enforcing use of
    LSF
  • Under active study by DME
  • Only applicable to lt20 of population
  • Costs R250 million capex, R50 million/a for 5
    years

33
Available Options IV
  • Use international LPG experience
  • Increase tax on paraffin
  • Control price of LPG, after review of LPG pricing
    structure
  • Facilitate manufacture of safe cheap LPG
    appliances subsidise purchase
  • Grow distribution via BEE
  • Some capital may be needed to capture existing
    excess LPG
  • Total costs of ltR1bn and R200m/a for 5 years

34
Available Options V
  • Fix specifications for subsidised housing
  • Improve thermal efficiency
  • Ceilings
  • Face north
  • Provide chimneys
  • In both paraffin coal heated houses CO levels
    of gt1000 ppm have been measured dung/biomass
    heating probably has same effect
  • Cost lt 5 increase in house cost
  • Reduces lifetime cost dramatically

35
Recommendations
  • The electricity option is probably ruled out for
    several years because of lack of NG and probable
    NG pricing
  • The paraffin appliance option seems to costly,
    will not stop child deaths, etc
  • LSF work should continue to be supported

36
Recommendations continued
  • Build on international experience of LPG in
    developing economies
  • There are exciting possibilities if this option
    is supported. They include
  • Creating lots of jobs in the distribution chain
  • Enabling growth of many SMEEs
  • Review building codes for subsidised housing

37
Thank you for your attention!
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