The supply of clean energy services to the urban and peri-urban poor in South Africa

Abstract

South Africa, compared to many other developing countries, enjoys a number of advantages which favour national electrification and the extension of benefits to the poor. These include the economic capacity to carry out a subsidised national electrification programme, a fairly favourable policy environment, free basic electricity [1] to assist the poor and a reliable (until recently) low-cost electricity generation capacity. This paper assesses the household energy situation in the rapidly growing poor urban and peri-urban areas of South Africa in general and analyses in greater depth a primary household energy survey conducted in Imizamo Yethu in Hout Bay. The key objective of the study is to identify viable and proven policy options that can assist in providing clean, affordable and more sustainable energy options for the urban and peri-urban poor. Access to electricity is not the main problem of the majority of the urban and peri-urban poor, but rather the ability to afford the service. People living in settlements not approved for housing by local government experience the gravest forms of energy poverty. Some make use of extension cords, with the reported attendant problems of less security of supply, danger, theft of wires and higher costs than metered customers. Access to paraffin (kerosene) is very good because of the infrastructure network, and paraffin appliances are generally cheap compared to electric and LPG appliances. Access to LPG is regarded as not good because of a poor network, distance to retail outlets, and the high cost of gas and appliances. Access to electricity does not automatically lead to higher levels of productivity and income generation. Most of the small businesses at household level are of a retail nature. The problem the urban poor experience is broader than electricity supply. It is rooted in the housing shortage, land issues and government's inability to deal with in-migration to urban areas.