CHAPTER THREE LITERATURE REVIEW
3.1 Introduction
The current study investigates aspects influencing the provision of modern energy services to marginalised communities within South Africa and aims to unpack the key spatial, socio- economic and technological factors that may promote or hinder the implementation of RETs.
Securing access to modern energy services and options remains a complex and multi- dimensional phenomenon requiring a more integrated approach that is informed by policy, socio-economic and environmental factors. Although RETs are widely promoted and increasingly included in low-income housing projects across South Africa, few studies examine the impacts of these technologies from a livelihood perspective. Therefore, the literature reviewed in this chapter aims to improve the understanding of the multiple dimensions associated with the supply, usage and adoption of modern energy services and technologies. This chapter provides a critical overview of aspects deemed pertinent in understanding the current issues within the energy dialogue; these aspects fall into the following broad thematic areas:
The energy discourse;
Energy security;
Energy poverty;
Energy and development;
Renewable energy: opportunities and constraints;
Alternative and renewable energy;
Household energy behaviours and profiles;
Energy policy; and
The South African energy sector.
In reviewing the literature on these themes, this chapter begins with an overview of the energy discourse which provides the context from which many of the current energy-related challenges emanate.
40 3.2 The energy discourse
Examining historic and present trends characterising the energy discourse is deemed important as it allows for a contextual background upon which this study is based. The importance of energy access is undisputed as an enabler of development and overall improvement of living conditions and lifestyles (IEA, 2011). Bilgen (2014: 890-891) states that energy is crucial for socio-economic growth and the enhancement of overall quality of life, and defines it as “the ability to do work and it can be found in different forms such as chemical, thermal, electricity, mechanical, gravitational, nuclear, radiant, sound and motion”.
However, this study focuses specifically on, “fossil (petroleum, coal, betumes, natural gas, shale oil, etc.) and renewable (alternative, biomass, hydro, wind, solar, geothermal, marine, hydrogen, etc.)” energy sources (Bilgen, 2014: 891).
It is widely accepted that access to energy facilitates economic growth and social well-being and is therefore the backbone of any economy (Kruyt et al., 2009; Johansson 2013; Akhmat et al., 2014; Surendra et al., 2014; Black et al., 2015; Löschel et al., 2015; Gabriel, 2016;
Romero-Jordán et al., 2016). Belke et al. (2011) state that economic growth and industrialisation revolutionised the role of energy within emerging economies and promoted the shift to more modern energy sources. The shift to coal and oil from traditional biomass is closely related to level of development and improved energy efficiency (Bashmakov, 2007).
Over the past few centuries the energy sector has undergone several changes with the most substantial being the shift from traditional biomass to fossil-fuels for the production of electric energy (Fouquet and Pearson, 2012). These slow periodic shifts experienced in the energy sector have transformed various aspects of energy production, use, storage and efficiency but most importantly culminated in the provision of modern energy services such as heating, lighting and transport (Fouquet, 2010; Solomon & Krishna, 2011).
Even though the most prominent energy shifts occurred in the late 19th century, by the 21st century a quarter of the global population still relied on traditional energy sources such as fuelwood to satisfy their household energy needs (Bashmakov, 2007). This suggests that even though electric energy services were available, shifts in energy practices at the household level were based on several influencing factors such as cost, efficiency, energy infrastructure, accessibility and availability (Lior, 2010). Consequently, these more efficient forms of energy were associated with higher production and extraction costs (physical and financial), thereby creating global energy markets which are intrinsically linked to resource economics (Stern,
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2011). Increased industrialisation and the emergence of global markets transformed energy into a necessary commodity for trade, development and economic growth (Belke et al., 2011). Given that energy is considered an integral component of production and the backbone of development, it is unsurprising that in recent years there has been more emphasis on physical and financial accessibility to energy within emerging economies (Sovacool, 2012).
Ayres et al. (2013) warn that limitations in the availability of energy may hinder economic progression, especially in developing countries.
Due to the deep-rooted links between energy and global economic markets, economic recessions exacerbate pressures on the energy sector and are often associated with increases in energy prices (Chester, 2010; Solomon & Krishna, 2011). While the change to fossil-fuel sources of energy resulted in improved efficiency and energy services (for example, mass electrification) this was also associated with a significant increase in environmental impacts, in particular, greenhouse gas (GHG) emissions (Chester, 2010). Thangavelu et al. (2015) show that even though fossil-fuels such as coal, natural gas and petroleum produce large quantities of cheap energy services, they are associated with significant volumes of GHGs.
Similarly, Khan et al. (2014) state that the majority of GHG emissions originate from commercial and residential energy consumption, specifically the use of electricity for heating/
cooling, cooking and lighting purposes. Nejat et al. (2015) claim that currently buildings consume 40% of global energy, however, this is expected to escalate rapidly due to the increasing demand for housing and commercial property. A key recommendation in the literature is that attempts to transform the energy sector should include a sector-based analysis of energy needs and consumption patterns which can be used to inform sustainable energy practices and technological innovation.
In addition, there are mounting concerns that the rate at which coal and oil resources are consumed for electricity production are unsustainable (Matutinović, 2009; Lawrence et al., 2013; IEA, 2013). Lior (2010) states that despite the ecological footprint of energy, total energy consumption is said to increase rapidly over the next few decades due to population growth. Energy consumption rates therefore become an important issue within the discourse.
Furthermore, increased pressure from international agencies and institutions to embrace energy sources that are less carbon intensive may result in developed economies having an unfair advantage over the developing world (IEA, 2013). In this regard, Lawrence et al.
(2013) argue that total energy consumption and therefore total carbon emissions are
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indissolubly linked to energy inequality across different countries. This suggests that developing countries, in particular, are extremely vulnerable to changes in energy markets and escalating environmental and financial energy costs may hinder overall local level socio- economic development within these countries.
Bilgen (2014) states that given the robust relationship between energy consumption and economic growth, changes in the energy sector are likely to have multifarious impacts on developing economies, especially those aiming to address issues of energy security and climate change concerns, simultaneously. These are critical development agendas and more importantly, highlight the need for improved planning and government intervention in shifting reliance to more sustainable, cost-effective and environmentally benign energy options, such as renewable energy (IEA, 2011). In light of the concerns mentioned above, current energy studies predict the next energy transition to comprise a broader energy mix in the form of alternate and renewable energies (Kaygusuz, 2009; Munien & Ahmed 2012;
Sovacool et al., 2012; Munien, 2014; Black et al., 2015; Gabriel, 2016; Zhang et al., 2016).
Analysis of the various energy sources comprising the energy sector, over the past five years, reveal that reliance on coal and oil remain unchanged, with slight increases in the contribution by renewable energy sources (IEA, 2012; 2013). Total contribution of renewable energy sources over the past five years indicate that the expected transformation away from carbon intensive energy is occurring at a relatively slow pace (International Panel for Climate Change [IPCC], 2007). The IEA (2011) state that renewable energy was projected to account for more than 40% of the total energy sources by the year 2035. Given the current energy statistics, this seems unachievable. This is disconcerting, given the much needed transformation in the energy sector. Furthermore, trends on the total GHG emissions by various economic sectors over the past nine years indicated that the energy sector contributed 26% and 31% in 2004 and 2013, respectively (Figure 3.1). This suggests that despite the increasing environmental concerns, the energy sector’s contribution to global GHG emissions is increasing at notable scales (IPCC, 2007).
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Figure 3.1: Sector-based GHG emission for the years 2004 (a) and 2013 (b) (adapted from:
IPCC, 2007)
Nejat et al. (2015) state that carbon dioxide (CO2) accounts for more than half the atmospheric GHG content and is considered the main contributor to climate change.
Thangavelu et al. (2015) approximated 3.17 Gt (Gigatonnes) of CO2 to have been emitted in 2012 with 42% of this emanating from electricity and heat generation; thus, the urgent need to switch to carbon poor alternative energy sources. Projected CO2 emissions are expected to increase over the next 20 years, exacerbating climate change related threats (IEA, 2013). The IEA (2011) warn that even with changes in energy policy and the increase in usage of renewable energy sources over the next 15 years, CO2 emissions are likely to remain at alarming levels. Interestingly, Nejat et al. (2015) show that energy use in the residential sector accounts for 17% of global CO2 emissions and can therefore be considered an important sector for transformation. Additionally, energy demand within this sector is expected to increase exponentially given the current population growth rates (Nejat et al., 2015).
Harvey and Pilgrim (2011) add that residential consumption of energy may increase rapidly with greater demand for transport (particularly terrestrial and air travel) and food.
Additionally, Bilgen (2014) asserts that modernisation of lifestyles through technology and globalisation will result in augmented energy demands at the household level, consequently increasing overall residential energy consumption. Even though current statistics show industrial and manufacturing sectors to be the highest energy consumers, future energy
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planning and transformation must also consider the residential sectors (IEA, 2013; Nejat et al., 2015). Thangavelu et al. (2015) recommend that in addition to embracing more renewable energy sources, governments should implement GHG reduction targets to address climate change related concerns. However, Akhmat et al. (2014) state that energy conservation policies will do little to alleviate energy related environmental pressure. Narrow approaches based on addressing singular components of the energy crises may not be sufficient. For example, addressing reliance on fossil-fuels alone, addresses environmental and resource concerns only and not issues such as energy affordability or security.
Lior (2010) notes energy conservation to be a vital aspect of the energy sector transformation;
more specifically, improved energy efficiency, lower energy products, conservative energy lifestyles and a reduction of energy waste through recycling. Likewise, Khan et al. (2014) state that improving energy efficiency is a cost-effective way to reduce energy consumption and therefore GHG emissions. However, it should be noted that the move to renewable energy sources like solar and wind power may not necessarily equate to more energy efficiency in all countries, given the geographic variations in solar radiation levels and wind velocities. In order for renewable energy to meet current and future energy needs and provide the essential energy services, there needs to be significant developments in the capacity, storage potential and design of RETs (Fouquet, 2010). Given that total energy consumption and carbon emissions are inextricably linked, sustainable shifts in the energy sector are pivotal in climate change mitigation (Lawrence et al., 2013).
Nevertheless, transformation to sustainable energy practices remains a significant challenge especially amongst the poor in developing countries and particularly within sub-Saharan Africa and South East Asia. The slow transitions in the energy sector within these countries over the last five years, specifically, the uptake of renewable and alternate energy sources have been largely attributed to poor policy action, technological inefficiencies, and inadequate supply of energy to the user, and high costs (IEA, 2011; 2013). Sokona et al.
(2012) are of the opinion that the slow transition to modern energy sources, especially among the poor exacerbates socio-economic inequalities and perpetuates risk and vulnerability.
Fouquet (2010) submits that civil society may also be reluctant to commit to climate change mitigation due to the associated behavioural and technological changes. Many energy users may be unwilling to alter behaviours, especially in terms of energy conservation, reduction in consumption patterns and the switch to renewable energy (Fouquet, 2010).
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Several studies have highlighted the relationship among energy, growth and climate change by focusing on economics, technological innovation and geopolitics (Winkler, 2005; Brown et al., 2008; Schaeffer et al., 2012). However, few studies champion the need for social science research to inform shifts in the energy discourse. Sovacool and Dworkin (2015) advocate for interdisciplinary energy studies that attempt to promote sustainability in the energy sector through greater cognisance of the social underpinnings. Therefore, it can be said that attempts to transform the energy sector to ensure a sustainable future are embedded in multi-dimensional approaches that not only seek to curb reliance on fossil fuels but promote radical shifts among all energy consumers towards energy conservation, and efficiency. Thangavelu et al. (2015) add that encouraging energy planning that underscores the use of renewable energy, diversity in the energy mix and GHG reductions will provide long term benefits related to energy cost and security.
The evolution of the energy discourse warrants the need to adopt trans- and interdisciplinary approaches and research. Issues such as energy security and poverty alleviation emerge as constants within the energy discourse and remain critical development needs. Kaygusuz (2009) states that the majority of the world’s poor still lack access to modern energy sources and services, necessitating a redress of energy equality and access across socio-economic and geographic gradients. The next section describes differences along these gradients by providing an overview of energy security and poverty.