Energy security and renewable energy in Least Developed Countries

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Energy security and renewable energy in Least
Developed Countries

• Norbert Wohlgemuth
• Klagenfurt University

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Map of LDCs
LDCs account for 11.3 of the worlds population
and 0.6 of world gross national product.
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Basic energy indicators, 2003
Source UNDP Human Development Report 2006
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Definitions of energy security

• From the numerous definitions, two broad
  dimensions of energy security may be
  distinguished
• Physical / quantity dimension risks related to
  physical supply shortfalls occurring between
  production and consumption due to infrastructural
  failure.
• Economic / price dimension the risks of price
  distortions caused by high prices and
  fluctuations in the price of energy products on
  the world markets.

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Energy security in LDCs

• Programme of Action for the Least Developed
  Countries (UN, 2001) The levels of production
  and consumption of energy in the majority of LDCs
  are inadequate and unstable.
• Strong relationship between energy and
  development.
• Therefore, from the perspective of LDCs, energy
  security needs a much broader definition.

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Renewable energy in LDCs

• Traditional fuels already provide for three
  quarters of LDCs energy supply, albeit very
  often in an unsustainable and insecure manner.
• Linking renewable energy with productive uses can
  create employment opportunities, raise income
  levels, improve quality of life in rural areas
  while at the same time protecting the environment
• Some LDCs offer two substantial assets with
  regard to the competitiveness of renewable
  energy regions with large renewable resources
  and, in many cases, lower cost for the
  production of equipment and components. These
  two factors point to considerable scope for
  cooperation between developing and developed
  countries.

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Biomass availability
Cancer Tropic
Equator
Capricorn Tropic
Source Adapted from BP Statistical Review of
World Energy (June 2006)
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Complex energy security issues in LDCs

• Increasing access to modern, i.e., efficient and
  clean, forms of energy
• Expanding the energy infrastructure to all
  segments of the population, geographically and
  socially
• Securing sustainable supplies of locally
  available biomass
• Global energy demand LDCs are almost negligible
  in the worlds energy balance. Developments in
  world energy markets are completely exogenous to
  LDCs
• Maintaining targeted (smart) subsidies on fuels
  for the poor

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Complex energy security issues in LDCs (contd)

• Economic adjustments to high energy prices much
  higher vulnerability to high oil prices than rich
  countries
• (Renewable) energy financing aspects CDM?
• Transfer of modern energy technologies to LDCs
  CDM?
• Bioenergy and small hydro power have emerged as
  most economic and suitable renewable energy
  technologies (rural multiplier)
• Linkages with agricultural markets Soybeans
  futures are tracking the price of heating oil for
  the first time (The Economist)Food fuel
  feed What resources, supply systems, conversion
  processes and end products?

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Full paper available at wwwu.uni-klu.ac.at/nw
ohlgem/unido_LDC.pdf