Energy justice: the high cost of electricity in rural areas

Here at the BioPact we're concerned with the social aspects of energy, especially as they relate to access to energy in the developing world. The following case, from Botswana, illustrates a very simple but devastating vicious circle in which those living in energy poverty and the governments that try to change the situation, are trapped. Biofuels are the answer, but some must first be convinced of the message (they will, sooner or later).

The CEO of the parastatal Citizen Entrepreneur Development Agency (CEDA), Dr Thapelo Matsheka laments that it is expensive to take projects to remote areas due to high utility prices. "Service provision has proved to be difficult in remote areas. There is need for a review of capital investment to accelerate rural development." He points out that it is almost financially unviable to approve a remotely located business that will require CEDA to provide facilities that do not enhance the development of the business. Matsheka was at pains to reveal that buying expensive electrical equipment affects business proposals. He said it costs P750,000 to install a transformer in remote areas.

So the equation is: no electricity in the rural areas means no business, no business means no development; and if there's no development in the rural areas, they won't attract a lot of investment in basic business sectors, which in turn makes the region marginal for investments in energy infrastructure...

A shock therapy to break this vicious circle could be mass migration of rural people to big cities. Abandonment of the land. This is happening in many third world countries, where mega-cities and mega-slums are popping up everywhere. But it doesn't really alter the social and economic situation of these people. Moreover, if the farmers are leaving the land, who's going to produce food for the nation?

There's only one way, we think, and that's the introduction of local bioenergy systems. They are well suited for small-scale decentralised energy production, don't require expensive grid extensions, and they are based on agriculture, which is what farmers do as a profession.

Most of us know about this classic vicious circle, and that such small-scale, decentralised systems are the way to go. But it's important to repeat it once in a while.


Let's allow our poor CEO lament a bit further: "This makes viable businesses located in remote area, almost impossible to fund", he said but lamented the fact that "it is in remote areas that there is need to aggressively accelerate rural employment".

"We need a partnership in the development of rural businesses," lamented Dr Matsheka. He noted that there is not much synergy between CEDA and other parastatals mandated to serve the community. Dr Matsheka noted that BPC does not meet them half way when they need them most. Meanwhile, CEDA boss told journalists that in the past months, his office has recorded a decline in applications as In the past CEDA received more than 200 applications per month.