Eco-Cities Up Close | 2013

Story: David South

Design and Layout: Solveig Rolfsdottir

Publication: Southern Innovator Issue 4: Cities and Urbanization

Publisher: United Nations Office for South-South Cooperation (UNOSSC)

Date: 2013

Eco-cities Up Close in Southern Innovator Issue 4.

An infographic showing planned and unplanned cities.

Meet Southern Innovator.

Southern Innovator Issue 4: Cities and Urbanization is published by the United Nations Office for South-South Cooperation (UNOSSC).

The first five issues of Southern Innovator. The highly influential magazine was distributed around the world and each issue was launched at the annual Global South-South Development (GSSD) Expo hosted by the United Nations Office for South-South Cooperation (UNOSSC).

ORCID iD: https://orcid.org/0000-0001-5311-1052

© David South Consulting 2017 

Indian Business Model Makes Green Energy Affordable

The technology already exists to provide renewable energy and electricity to all the world’s poor. The trick is finding a way to pay for it and to make it sustainable. Many innovators are experimenting with business models to reach the so-called Bottom of the Pyramid (BOP) cohort, and the 1.2 billion poorest people in the world who do not have access to electricity (World Bank) (http://tinyurl.com/n9p3f5x). A further 2.8 billion have to rely on wood or other biomass materials to cook and heat their homes.

The International Energy Agency (iea.org) believes US $48 trillion of investment will be needed between now and 2035 to make sure energy capacity matches rapid population growth.

In the influential book The Fortune at the Bottom of the Pyramid (http://www.amazon.co.uk/Fortune-Bottom-Pyramid-Eradicating-Poverty/dp/8177587765), the late professor C.K. Prahalad (http://en.wikipedia.org/wiki/C._K._Prahalad) advocated seeing the poor as people with needs and assets: consumers who just need the right goods and services designed for them. It was a change from thinking only of the world’s wealthier populations as consumers, and revealed a market worth billions waiting to be tapped.

Energy is key to development and improvements to living standards. Yet energy poverty plagues much of the global South, especially in Africa and particularly in rural areas.

The World Bank has identified 20 countries in developing Asia and sub-Saharan Africa which will require a massive effort to expand access to electricity and safe cooking methods for poor households.

Around 80 per cent of the people without modern energy live in rural areas. While progress has been made since 1990 in expanding access to energy, it has failed to keep pace with population growth. According to the World Bank, the pace of expansion will have to double to meet the 100 percent access target set for 2030.

To avoid increasing global carbon emissions while achieving this goal, many are looking to renewable energy sources and technologies to reach these last groups of people.

As pointed out by the Institute of Development Studies (http://www.ids.ac.uk/news/can-renewable-electricity-reduce-poverty), “The global threat posed by climate change means that we also face the pressing need to use less carbon in existing energy systems. Making progress on both energy poverty and decarbonization requires a sharp increase in renewable electricity production, both on and off-grid.”

The institute identified four necessary factors for access to renewable energy to benefit poor people.

1.         Once electricity is generated, it needs to be reliably fed into the system.
2.         This additional supply must be made accessible, and affordable, for poor people.
3.         Increased electricity consumption then needs to translate into poverty reduction.
4.         Increased electricity supply can indirectly reduce poverty by boosting economic growth.

India’s Simpa Networks (simpanetworks.com), started in 2011, has a business model it believes will do the trick. Simpa has developed a clever way to increase access to home solar power systems for the poor, by allowing customers to purchase the system in gradual “rental” payments over time. The customers eventually come to own the power system outright, and from then on to generate electricity for free. Since the payments are small and incremental, it suddenly becomes within the realm of poor households to afford modern solar energy systems.

This is called the “Progressive Purchase Pricing Model” – similar to “prepaid”, “pay as you go” and “installment plan” models. Under this model, customers make a 10 percent down payment and receive the home solar system. The customer then buys a time-specific amount of energy for between US $1 and US $10 with their mobile phone. The orange lock box on the power system has a keypad on the front. When a code is punched in, it releases electricity (http://simpanetworks.com/our-solution/).

In increments, while the customer purchases energy for home use they also eat away at the cost of the system, until eventually it is paid off, usually at a total of US $300. Systems have an expected life span of 10 years.

With few cash resources, poor households usually are not capable of saving enough cash to purchase a full energy system for their home. Instead, they rely on buying kerosene for lamps or using battery-powered torches and lamps when they can afford it.

In 2012, Simpa teamed up with SELCO India (http://www.selco-india.com/) – a social enterprise providing sustainable energy solutions and services to households – to sell 1,000 home solar power systems, expanding to 5,000 systems in 2013, according to a case study from not-for-profit Synergie pour l’Echange et la Valorisation des Entrepreneurs d’Avenir (SEVEA) (sevea-asso.org). The goal is to reach 25,000 units sold by the end of 2014, proving this business model can scale. Ultimately, Simpa wishes to mega-scale its approach and reach 1 million households over the next five years.

Simpa believes take-up will be quick because this model reduces risk, both for the seller and for the bank that may loan the cash for the 10 per cent down payment. Simpa acts as a go-between for the system sellers such as SELCO and the banks. Simpa believe this business model reduces the risk of non-payment or loan default and has the right incentives in place to encourage the customer to hang in and keep making payments until they own the system outright. Customers enjoy the benefits of clean energy 24/7 from day one and can see clearly the connection between the energy they receive and the small payments they make. For those who default from paying, the system is taken from their home.

When the system was piloted in Karnataka, India, all loans were successfully repaid.

Simpa Networks is a venture capital-backed technology company. It hopes its approach will attract investors, particularly social investors, seeking a low-risk investment in helping expand energy access.

By David South, Development Challenges, South-South Solutions

Published: June 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Asian Factories Starting to go Green

Media headlines have recently highlighted the growing air pollution crisis in Asia’s expanding cities. This is caused by a mix of factors – the growing number of vehicles, coal-powered factories, people burning dirty fuels to heat their homes, and poor enforcement of standards – and has severe consequences for human health. If it’s not tackled, more and more countries will see large rises in respiratory problems, cancers and early deaths from pollution-caused illnesses (http://www.nrdc.org/air/).

The World Health Organization (WHO) says air pollution is the world’s largest environmental health risk, killing 7 million people every year. Asia has the largest number of air pollution deaths in the world, with 3.3 million deaths linked to indoor air pollution and 2.6 million deaths related to outdoor air pollution (Clean Air Asia).

While most of the Asian countries where this is a problem are also aggressively growing their economies in order to get richer and raise living standards, there is a rising awareness of the need to balance a modern, industrial economy with human health and the environment.

One solution is to adopt green and sustainable building standards when constructing new factories. This is more than just a public relations exercise: the energy savings possible from building smart pay off in the long run. And green factories not only pollute less, they save lives and the environment.

Asia plays a critical role in producing the world’s consumer products, from the small and simple to the highly complex components used in 21st-century computing technologies.

Intel (intel.com), the manufacturer of electronic devices and the computer chips that go inside them, is trying to lead the way. It has built a US $1 billion manufacturing plant 16 kilometers outside Ho Chi Minh City, Vietnam, and it is designed to exceed Vietnamese environmental and sustainability guidelines and laws.

Opened in 2010, it boasts the country’s largest solar power system. It is also currently working on a water reclamation system to reduce water consumption at the plant by 68 per cent, according to The New York Times. It is hoping to receive certification from the US Green Building Council (usgbc.org).

It is all part of a wider trend that is starting to reverse the damaging, short-termist approach of the past. More and more Western multinationals and their Asian suppliers are building environmentally sound factories in the developing world.

According to the US Green Building Council, around 300 manufacturing facilities in Asia are either certified or are awaiting Leadership in Energy and Environmental Design (LEED) certification. The LEED certification recognizes the building has met certain standards in becoming a ‘green’ building.

Going green is more and more part of corporate policy for companies that want to avoid the bad publicity of disasters such as the garment factory collapse that killed 1,135 people in Bangladesh in April 2013.

But it is not just driven by a desire to avoid bad publicity: large corporations that build factories in the global South are also realizing there are big financial savings to be made.

Intel has been able to reduce its global energy costs by US $111 million since 2008. It did this by investing US $59 million in 1,500 projects to boost sustainability across its facilities worldwide. The projects have reduced carbon dioxide emissions equivalent to the amount produced by 126,000 American households per year.

Intel’s solar array in Vietnam, which cost US $1.1 million, offsets the equivalent of 500 pollution-belching motorbikes every day.

How effective are LEED-certified buildings? The New York Times reported that a 2011 survey compared a typical shoe factory with a LEED factory run by the American sport shoe maker Nike. It found the LEED factory used 18 per cent less electricity and fuel and 53 per cent less water.
And this trend is creating a new economy unto itself. As an example, a new marketplace for industrial efficiency upgrading is developing in India. Power outages are frequent in India, so finding a way to save electricity and alternatives to dependence on the national power grid is attractive to any economic enterprise.

Prashant Kapoor, principal industry specialist for green buildings at the International Finance Corporation (IFC), believes demand for upgrades is strong enough that various companies can specialize in this field and profit from it.

And things are also happening in the notoriously smog-choked cities of China. By the end of 2012, China had certified eight factories and 742 buildings as LEED, according to the China buildings programme at the Energy Foundation (ef.org) in San Francisco.

Damien Duhamel of Solidiance (solidiance.com), a firm that advises businesses on how to grow in Asia, believes avoiding risk caused by environmental accidents or scandals is heightened by the growing presence of social media, which amplifies negative publicity.

“The next battle will be here” for higher corporate environmental standards, Duhamel believes. “This is why some smart companies – Intel, for example – took the steps of being proactive.”

By David South, Development Challenges, South-South Solutions

Published: April 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Ethiopia and Djibouti Join Push to Tap Geothermal Sources for Green Energy

Ethiopia and Djibouti are the latest global South countries to make a significant commitment to developing geothermal energy – a green energy source that draws on the heat below the earth’s surface (http://en.wikipedia.org/wiki/Geothermal_energy) – to meet future development goals.

Ambitiously, Ethiopia also hopes to build Africa’s largest geothermal power plant.

It joins Kenya, which in 2012, announced projects to expand its geothermal capacity further. Currently, Kenya is Africa’s largest geothermal producer and has geothermal resources concentrated near a giant volcanic crater in the Great Rift Valley with 14 fields reaching from Lake Magadi to Lake Turkana. There are also low temperature fields in Homa Hills and Massa Mukwe (http://www.gdc.co.ke/index.php?option=com_content&view=article&id=191&Itemid=163). Around 1,400 steam holes are being drilled.

Cooperating with Reykjavik Geothermal (rg.is), a US-Icelandic private developer, Ethiopia will spend US $4 billion to build a 1,000 megawatt geothermal plant at Corbetti (http://www.volcano.si.edu/volcano.cfm?vn=221290). It is expected to be ready in eight to 10 years. The country wants to be carbon neutral by 2025.

Drilling will need to go down as deep as 3 kilometers to tap the source. This is expensive and a technological challenge, thus the need for international expertise. The country hopes to develop this source of energy and then export electricity to neighboring African countries.

Another plant, Aluto Langano 7, is being built 201 kilometers south of Addis Ababa, the capital, by a partnership between the Japanese government, Ethiopia and the World Bank.

Ethiopia has enormous potential for geothermal energy, according to a paper in the journal Geothermics: “Ethiopia holds an enormous capacity to generate geothermal energy in the volcano-tectonically active zones of the East African Rift System (http://www.sciencedirect.com/science/article/pii/S0375650513000023).”

At present, 70 per cent of people in sub-Saharan Africa, some 600 million, are without a domestic electricity supply (USAID). Electricity and other sources of energy are required if living standards are to be raised for millions of the world’s poor. The danger of this, however, is to the planet if the energy comes from polluting sources.

In March 2013 the World Bank announced a significant push to increase development of geothermal resources around the world, and in particular in energy-hungry, fast-developing countries.

“Geothermal energy could be a triple win for developing countries: clean, reliable, locally produced power,” the bank says. “And once it is up and running, it is cheap and virtually endless.”

The bank joined forces with Iceland to make a pledge to secure US $500 million in financing to get geothermal projects up and running. The announcement was made at the Iceland Geothermal Conference (http://geothermalconference.is/) in Reykjavík, the Icelandic capital.

Few countries have such easy access to geothermal energy as Iceland, with its plentiful volcanoes, geysers and hot springs bursting through the surface. But it is there, under the ground, and through the Global Geothermal Development Plan (GGDP), it is hoped this plentiful energy source will become the norm for countries around the world.

The World Bank believes at least 40 countries can get into geothermal on a significant scale with the correct investment. Many developing world regions are rich in geothermal resources, including East Africa, Southeast Asia, Central America, and the Andean region.

Just 11 gigawatts of geothermal capacity is currently being tapped in the world. Nuclear power, for example, generates 370 gigawatts a year (2012) (EIA). What has held back many countries has been the high upfront costs involved in getting projects going. A site must be found, drilled and tested to see if it is viable.

The GGDP plan is to raise US $500 million from donors and others to fund geothermal exploration and development. The GGDP will identify promising sites and then acquire funding to pay for drilling to identify commercially viable projects.

The World Bank has increased financing for geothermal development from US $73 million in 2007 to US $336 million in 2012. It comprises 10 per cent of the Bank’s renewable energy lending.

The Icelandic International Development Agency (iceida.is) signed a partnership in September 2013 with the government of Ethiopia to undergo geothermal surface exploration and to build Ethiopia’s capacity to develop this energy source. The World Bank estimates that Ethiopia has the potential to generate 5,000 megawatts (MW) of energy from geothermal sources.

The Geological Survey of Ethiopia (GSE) and the Ethiopian Electric Power Corporation (EEPCO) will undertake exploration at sites in Tendaho Alalobeda and Aluto Langano.

It fits in with a wider push by Ethiopia to develop its renewable energy resources. The country is also increasing investment in hydro-electric power.

The Ethiopia project is part of the wider World Bank-Iceland compact to develop global geothermal energy capacity. It is the second such arrangement, with the first already underway in Rwanda.

Djibouti is also moving into geothermal, with a new agreement with the World Bank to develop a site at Lake Assal. The World Bank will provide US $6 million to evaluate its commercial potential. Djibouti tried to develop its geothermal resources privately but was not successful.

Overall, geothermal power has the potential to help reduce Djibouti’s electricity production costs by 70 per cent, boost access to electricity for the population and alleviate the country’s energy dependency. The country hopes to have 100 per cent green energy by 2020.

Joining forces on helping boost geothermal in Africa is USAID’s Power Africa fund, which is providing US $7 billion in financial support and loan guarantees for energy projects.

Apart from generating electricity, what else can this powerful resource do? Countries such as Iceland now use hot geothermal water to heat homes and provide domestic hot water. Iceland also has an extensive network of swimming pools and spas in each town. The Blue Lagoon (bluelagoon.com) is a good example of how geothermal power generation can have lots of side benefits. The giant, steamy blue-colored lagoon is the consequence of an accident in 1976 at the nearby geothermal power plant; it’s now a spa and one of the country’s main tourist attractions.

The geothermal-heated pools and spas play a key role in keeping the cold north Atlantic country healthy – Iceland ranked number one on the UNDP human development index in 2007 – and provide a recreational source even in the depths of winter.

By David South, Development Challenges, South-South Solutions

Published: December 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Prisons with Green Solutions

 

An ingenious solution is helping Rwanda reduce the cost of running its bursting prisons, while improving conditions for the prisoners and helping protect the environment.

The country’s prison population soared to a peak of 120,000 suspects awaiting trial for their role in the 1994 genocide, in which 800,000 Tutsis and moderate Hutus were killed. The traditional court system, gacaca, is being used for national reconciliation, but the process is slow and costly for a country where 90 per cent of the population exist on subsistence agriculture, and where food production has dropped below 70 per cent of the levels needed for self-sufficiency (USAID).

But thanks to enormous, bee-hive shaped human manure digesters, a steady supply of biogas is on tap for cooking and lighting at prisons – the first country in Africa to do this. Five of the country’s largest prisons – two at Gitarama and one each in Butare, Kigali and Cyangugu – now have biogas plants producing 50 per cent of the gas needed to cook for prisoners. It has also saved half of each prison’s US $44,000 a year firewood costs. The money saved is being ploughed back into renovations to the prisons to improve conditions, and to provide more services like healthcare.

Biogas is produced from the fermentation of household or agricultural waste or animal or human feces, and has become a viable alternative when traditional gas sources become more expensive. The waste is placed in a 150 cubic meter beehive-shaped digester and fermented until a gas is produced. According to lead engineer on the project, Ainea Kimaro, 100 cubic meters of waste is turned into 50 cubic meters of fuel by bacteria devouring the manure in just four weeks.

The digesters are a project of the Kigali Institute of Sciences, Technology and Management ‘s Center for Innovations and Technology Transfer.

“Biogas kills two birds with one stone,” Kimaro told the BBC. It gets rid of all the human waste and helps cover the enormous costs of feeding so many prisoners. Prior to the digesters, the quantity of human waste was a real problem: it was flooding down hillsides and leaking into rivers and lakes.

A school, the Lycee de Kigali , also has a digester. “The methane gas is used to cook for 400 students and for operating Bunsen burners in the school laboratories”, Kimaro said.

Many would think this a smelly affair, but in fact the whole process isn’t that pungent. Most of the digester is underground and the gas produced burns a clean, blue smokeless flame. It is much cleaner than the smoke from firewood. The remaining sludgy residue is used as an odourless compost for soil. This is used in the prison gardens to grow maize, mangos, bananas and tomatoes – all of which ends up back on the prisoner’s plates, improving the quality of their nutrition.

“The firewood savings are excellent – they really make a difference for us,” a Cyangugu prison warden said, adding that the odour-free compost had done wonders for the prison gardens. “Look at all these bananas! This fertiliser really is the best,” he said to the BBC.

In Uganda, human urine and feces are being mixed with banana peels, algae, water hyacinth and poultry droppings to make biogas. In Uganda’s rural Mukono district, biogas is used for cooking, lighting pressure lamps and to power engines. The slurry left over is then used to fertilise the soil. For Ugandans, most of whom are rural dwellers, electricity is rare and petrol to run generators and refrigeration units is expensive.

“It keeps the environment free of organic wastes, is convenient, time-saving and reduces smoke-related illnesses often associated with the use of firewood,” said Patrick Nalere, country director of the Heifer Project International, an American NGO which shares livestock and knowledge to reduce poverty. “If the majority of Ugandans adopted biogas, we would preserve our biodiversity. People should exploit decomposing raw materials, which are free. Therefore, no monthly power tariffs.”

By David South, Development Challenges, South-South Solutions

Published: February 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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