Managing a transition to green energy sources: The perspectives of energy practitioners in the Southern African Development Community region.
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Managing a transition to green energy sources: The perspectives of energy practitioners in the Southern African Development Community region. Justice Ramagoma*, Chris Adendorff Nelson Mandela Metropolitan University Business School, 2nd Avenue Campus, Summerstrand, Port Elizabeth, South Africa. Abstract exponentially to a point of driving industries in The Southern African Development Community future. The study recommends that SADC countries (SADC) region has low energy security, exacerbat- prioritise mapping of green energy resources to ed by electricity power cuts and load-shedding in facilitate the selection of suitable green energy almost all its member states. Green energy has the options in order to meet local energy needs and potential to contribute to the shortfall in the supply environmental protection. Research and develop- of energy required on the grid network during daily ment of suitable green energy storage technologies (morning and evening) and seasonal (winter) peak to overcome intermittency of some green energy periods. The Statistica 12 program was used to sources must be expedited in the region. analyse and compare responses between identified groups in the SADC region’s Energy sector. Keywords: green energy, energy security, green- Multivariate analysis of variance and analysis of house gases, energy storage, peaking power, envi- variance were used to examine associations ronmental pollution between variables within the identified categories of respondents, and conclusions were made about six hypotheses. The categories of respondents sampled included: people associated with fossil fuel and renewable energy; people with experience of 1-6 years and more than 6 years; researchers and industry practitioners; practitioners based in South Africa and in other SADC countries; and a category based on practitioners’ positions (junior managers, middle managers, and senior managers) in their respective organisations. The study found that energy practitioners generally support a transition to green energy sources and there is consensus that the uptake of green energy will be slow initially, driven by low costs of fossil- based sources, but the uptake will eventually grow Journal of Energy in Southern Africa 27(4): 77–90 DOI: http://dx.doi.org/10.17159/2413-3051/2016/v27i4a1638 * Corresponding author: Tel: * +27 (0)13 296 3013 Emails: ramagomj@eskom.co.za justice.ramagoma@webmail.co.za 77 Journal of Energy in Southern Africa • Vol 27 No 34 • November 2016
1. Energy poverty and low-carbon energy resulted in climate change that has caused devasta- solutions tion to ecosystems and sustainable social and eco- Green energy obtained through the use of low-car- nomic development in many parts of the world, bon energy solutions is acknowledged as a solution especially in developing countries (Arent et al., to energy poverty and climate change around the 2011; Lau et al., 2012). Greening the Energy sector world (UNEP, 2011). The transformative potential can contribute substantially to addressing global of green energy on socio-economic development warming challenges and energy poverty. and mitigation of environmental pollution could change the well-being and quality of life for citizens 1.2 Historical green energy initiatives of the Southern African Development Community Recognising the imperatives of access to green (SADC). Nezhad (2009) identified the driving forces energy is not a new concept in Africa. In 1981, that will shape the future of global energy as eco- Africa hosted the first international conference on nomic growth rate, growth rate of energy consump- new and renewable sources of energy in Nairobi. tion, investment requirements, demographic The conference acknowledged the realities facing changes, carbon dioxide emissions, technology Africa in terms of access to modern energy and the development and innovation, global energy intensi- unprecedented, high prices of petroleum energy ty, oil prices, and development of alternative energy (Kammen & Kirubi, 2008). Africa, like other world sources. regions, embraced the strong optimism and vision for making a transition to renewable energy 1.1 Greenhouse gases and climate change sources. Although important initiatives have since The World Energy Council (2012) projected that, been taken, notably in biomass and solar energy, by 2035, approximately 60% of electricity will be the promise of renewable energy in Africa remains generated from fossil-fuel sources, with 40% com- largely unmet (Kammen & Kirubi, 2008). ing from carbon-free sources, and that fossil fuel will Current energy-generation assets are ageing, continue to play a dominant role for the following which leads to decreasing efficiency, increasing two to three decades. Africa possesses immense maintenance cost, and unexpected outages. The energy potential in the form of renewable energy frequent power outages have resulted in the sources, even though its energy consumption in increasing use of emergency power, using liquid general is low and electricity consumption is only fuels, which are expensive (KPMG, 2014). The approximately 8% of the global total (Sanoh et al., recent approval by ministers of SADC for the estab- 2014). Sub-Saharan Africa (SSA) is the only region lishment of the SADC Centre for Renewable Energy in the world where the number of people living and Energy Efficiency (SACREEE) as a subsidiary without electricity is increasing, as rapid population organisation is a positive development. Its main growth is outpacing the many positive efforts to objective is stated as being ‘to contribute towards provide access (IEA, 2014). increased access to modern energy services and A number of studies have been conducted to improved energy security across the SADC region project different scenarios that will result from global by promoting market-based uptake of renewable warming. Marchal et al. (2011) listed some of the energy and energy efficient technologies and ener- regional impacts forecast by the Inter- gy services’ (SACREEE, 2013). Governmental Panel on Climate Change to affect Africa by 2020. It is projected that between 75 mil- 2. The theoretical rationale of the study lion and 250 million people will be exposed to The theoretical rationale of this study, shown in increased water stress, yields from rain-fed agricul- Figure 1, is premised on an increased demand for ture could be reduced by up to 50% in some energy as a result of population growth leading to a regions by 2020, and agricultural production, need to meet energy requirements through the including access to food, may be severely compro- increased use of green energy as opposed to fossil- mised. The release of both black carbon particles fuel sources. The rationale postulates that increas- and other forms of air pollution, e.g., sulphur and ing access to energy services through green energy nitrogen oxides, photochemical smog precursors will lead to widespread access to modern energy and heavy metals, will also have a detrimental effect services and an improved quality of life, as opposed on public health (United Nations Environment to the use of fossil fuels resulting in environmental Programme (UNEP), 2011). There is, generally, catastrophes in the long term. consensus that global warming is an inevitable result of anthropogenic emission of greenhouse 3. The research problem statement and the gases that remain in the atmosphere like a blanket, objective of the study preventing the reflection of heat back into outer The continued extensive use of fossil fuels is not space (Arent et al., 2011). Consequently, the aver- addressing energy poverty in Africa and it is likely to age earth temperature has increased by 0.7 °C since lead to environmental damage. Wustenhagen and the pre-industrialisation period and this rise has Menichetti (2012) argued that greenhouse gases 78 Journal of Energy in Southern Africa • Vol 27 No 4 • November 2016
Figure 1: The theoretical rationale of the study. that result in global warming have the potential to point that some are mature enough to serve as a cause extensive devastation in the form of environ- generation resource. For example, a photovoltaic mental catastrophes in the future if action is not (PV) battery energy storage system can potentially taken to reduce them. Against this background, the solve this problem by storing electrical energy when research problem is that the continued dependence demand is low and supply stored energy when the on fossil fuel energy sources will not address energy demand is high. Energy storage system (ESS) and poverty in the SADC region; on the contrary, it will hybrid energy storage system (HESS) are some of have an adverse impact on human health and also the available options available for use with PV (Cho increase environmental pollution. This study aims & Kleit, 2015). to establish whether there are significant differences of views amongst energy practitioners with regard 5. Increasing capacity for energy generation to a transition to green energy in the SADC region. in the SADC region Power shortages have affected most countries in 4. Green energy battery storage varying degrees. According to the Development The need for access to green energy is most evident Bank of South Africa (DBSA) (2014), the main rea- in rural areas. Energy generated by renewable sons for the diminishing generation capacity in the sources for remote rural areas has many advantages SADC region are: over conventional supplies, but a negative aspect of • an increase in electricity demand; unexpected green energy sources is that some are intermittent. high industrial growth; This problem can be addressed by investing in bat- • economic expansion; tery storage (Ma et al., 2015). To regularise an inter- • high growth in population; mittent renewable energy output, Ma et al. (2015) • uneconomic tariffs that do not support the capi- advocated for the adoption of an appropriate ener- tal and operational cost for investment in power gy storage component as the solution, with high generation; and specific power and high specific energy over peri- • lack of capital injection into new generation pro- ods of minutes or hours. Solomon et al. (2014) jects by both the public and private sectors. argued that the existing grid in developing countries is not yet configured to accommodate very large, Earth offers many options to exploit sources of variable, renewable energy systems, and that bulk green energy, including wind (offshore and distribution will most likely require the ability to onshore), marine (wave, ocean thermal energy con- enhance the use of energy from the variable tech- version, tidal), biomass (biogas, dung, ethanol, nologies. Cho and Kleit (2015) observed that bat- gasifiers, crop residue and fuel wood), hydro tery storage technologies have developed to the (pump-dam storage, run-of-river, pump storage), 79 Journal of Energy in Southern Africa • Vol 27 No 34 • November 2016
Figure 2: Global green energy options (adapted from Kathirvel and Porkumaran, 2011). geothermal and solar (PV and concentrating solar 5.2 Hydro-electrical power potential power) as shown in Figure 2. Insufficient mapping Large-scale hydro is the most inexpensive, efficient of renewable energy resources is, however, another and affordable form of renewable energy with vast challenge that must be addressed urgently. There is potential still to be developed in Africa, where there still a need for regional resource maps that could be is only 7% development and which is the lowest useful in assessing potential for regional projects rate of the world’s regions (WEC, 2013b). Africa (SACREEE, 2013). has a considerable natural advantage in hydro Barry et al. (2011) observed that the selection of power because of extensive, high-altitude areas on low-carbon energy technology must be based on which the water vapour gathered over the Atlantic research in order to achieve the priorities of the precipitates. The run-off from this rainfall into the local population, as well as governmental social and Congo, Niger and Zambezi rivers could support sev- environmental targets, thereby sustaining the sector. eral mega-dams, significant projects on the upper As part of the short-term measures, a number of Nile in Ethiopia and Uganda; and numerous small- rehabilitation and generation projects are being er schemes (Collier and Venables, 2012). Political undertaken to address the generation supply gap, obstacles hinder the development of hydro electri- whereby up to 17000 MW was planned between cal energy in the central parts of Africa. The most 2013 and 2016 (Southern African Power Pool notable examples of political obstacles are tribal (SAPP), 2013). The SAPP (2014) revealed that the conflicts and rebellions from political formations in region will have sufficient generation capacity after the Democratic Republic of the Congo (DRC), 2017 if all the planned projects were commissioned which resulted in weak investments for decades in and energy adequacy achieved in 2018. The gener- the Grand Inga hydro-electric project on the Congo ation reserve margin will reach 12.6% in 2016, River (Sebitosi and Okou, 2010; Collier and 17.2% in 2017, and 23.8% in 2018 (SAPP, 2014). Venables, 2012). 5.1 Biomass energy potential 5.2.1. The Grand Inga project Biomass is and will remain SSA’s dominant source Kammen and Kirubi (2008) argued that the DRC of energy for a foreseeable future. Owen et al. can potentially be a huge exporter of electricity. It (2013) argued that, in order to realise the full poten- could be a net exporter almost four times larger tial of biomass energy for poverty alleviation and than its domestic consumption and continue to sup- the creation of employment and business opportu- ply hydro power through Namibia, Botswana, nities, prevailing informal production and distribu- Zimbabwe, Mozambique, and Lesotho. The Congo tion of solid biomass must be replaced with eco- River is currently the world’s second largest in terms nomically viable and socially equitable arrange- of its flow (Odhiambo, 2010; WEC, 2013a). The ments in a more modern and organised fashion. first site development studies done in the 1960s rec- 80 Journal of Energy in Southern Africa • Vol 27 No 4 • November 2016
ommended a construction of four hydro-electric ernmental organisations. The country, however, power stations in two phases (International plans to add nuclear capacity in 2023, perhaps Development, 2008). Only a fraction of the poten- hoping that the option will be more acceptable tial hydro-electric power was, however, developed then. in the DRC largely because of the political uncer- tainties that have ravaged the country and scared 6. Research methodology potential investors over the years. Odhiambo A survey questionnaire with 72 questions linked to (2010) observed that, in 2003, the DRC had a total a 7-point Likert scale of responses was sent to generating capacity of about 2568 MW, but only respondents to test their support for green energy produced 600-700 MW because two-thirds of the sources and to determine if there were significant turbines were dysfunctional. differences in support for alternative sources of green energy identified in the questionnaire, 5.3. Solar energy potential amongst energy practitioners in the SADC region. A One of the most promising green energy technolo- total of 301 responses were received. The composi- gies for Africa is solar power. It suits Africa’s natural tion of the sample population for the study included endowment of strong sunlight distributed evenly energy practitioners from both fossil-fuel and throughout the year. Solar energy sources have the renewable Energy sectors and comprised respon- potential to improve access to modern energy dents from energy ministries in the SADC region, through PV and CSP because PV technology is non-governmental institutions, private companies; ideal for decentralisation and dispersion to rural energy researchers; academics; and energy special- households of developing countries and, in the long ists. Respondents were categorised as follows: term, a cheaper option than conventional, grid- • those associated with fossil-fuel and renewable based electricity (Collier and Venables, 2012; energy; Shukla et al., 2010; Otiti and Soboyebo, 2006). • those with experience of 1-6 years and more Many national, renewable and rural energy strate- than 6 years; gies must, consequently, give priority to the dissem- • researchers and industry practitioners; ination of PV. • practitioners based in South Africa and other SADC countries; and 5.4 Wind energy potential • junior, middle, and senior managers. Wind energy is an attractive option for countries with an abundance of wind, particularly the coastal Different research designs fall into two categories areas in the SADC region, as it can be installed that might be more or less appropriate in different quickly in areas where electricity is needed urgently, situations, being probability sampling and non- in many instances, it can be a cost-effective solution probability sampling (Leedy and Ormrod, 2005). if fossil fuel sources were expensive or not readily Quota sampling, which is a non-probability sam- available (Milborrow, 2011; Sartipipour, 2011). In pling technique, was employed for this study. This addition, there are many applications for wind ener- method of sampling selects respondents randomly gy in remote regions. It can transform access to in the same proportion that they are found in the energy to supply farms, homes, and other installa- general population (Leedy and Ormrod, 2005). tions on an individual basis (Milborrow, 2011). The largest quota of respondents was obtained from Wind generation of electricity is, however, hindered South Africa. In Africa, the largest percentage of by a lack of manufacturing industries in developing electricity generated from fossil fuel is generated in countries, skills and spare parts, which should be South Africa. The country has the most advanced addressed urgently (IEA, 2012). power market in Africa and is sometimes referred to as ’the powerhouse of Africa’ (KPMG, 2014). 5.5 Non-green energy (nuclear energy) Eskom, a parastatal responsible for the supply of potential electricity in South Africa, is estimated to generate The regional infrastructure development Master about two-thirds of the total output of electricity for Plan (2012) concluded that nuclear power is con- SSA and 80% of the total southern African output sidered to be an important source in the mix of (KPMG, 2014). global electricity generation. It is viewed as a solu- tion to climate change, but recent disasters and the 7. Interpretation of results and discussion constant fear of managing nuclear waste prevents it Leedy and Ormrod (2005) observed that, in the from being a popular solution. In the SADC region, analysis of quantitative research, data characteris- the share of nuclear power is 1.6% and is only tics are reduced to variables analysed with multi- found in South Africa, the country was reluctant to variate and univariate statistical data analysis tech- implement further nuclear power stations using its niques. Multivariate Anova (MANOVA) and pebble bed technology (RIDMP, 2012). There is Univariate (ANOVA) statistics were employed to strong opposition from the community of non-gov- determine whether sufficient evidence existed to 81 Journal of Energy in Southern Africa • Vol 27 No 34 • November 2016
Table 1: Multivariate ANOVA statistics - make conclusions about the six hypotheses of the variables A to L. study. These hypotheses related to the differences in opinions between categories of respondents. A Effect F D.F. p series of MANOVA analyses were conducted to test Intercept 802.93 12; 232 6 years), Energy analysis for the independent variable B (economic sector (fossil fuel/renewable energy) and the role of augmentation from green energy) indicates that the energy practitioner (researchers/industry). there was a significant difference between responses MANOVA analysis results indicating significant dif- in terms of the region and positions of respondents ferences of the results are highlighted in bold font. (Senior management/Middle management/Junior Table 1 shows the MANOVA statistics for variables management). The post-hoc results of Middle man- A to L. agement/Junior management give p = 0.004. Univariate ANOVA results C and post-hoc results C 7.2 The ANOVA results of variable A – L are shown in Table 4. Tables with ANOVA analysis results indicating sig- The ANOVA results represent a significant differ- nificant differences of the results are highlighted in ence in responses to the independent variable C bold font. The ANOVA results A and post-hoc (mitigation of environmental pollution) in terms of results A are shown in Table 2. position and region. Post-hoc results yield p = The ANOVAs that were conducted on factors 0.036 for the differences based on the region; p = individually revealed that there was a significant dif- 0.001 for Senior management/Junior management Table 2: Univariate ANOVA results A and post-hoc results A. Univariate ANOVA results – A Effect F-value D.F. p Intercept 1380.534 1; 249
Table 3: Univariate ANOVA results B and post-hoc results B. Univariate ANOVA results – B Effect F-value D.F. p Intercept 2371.092 1; 249
Table 5: Univariate ANOVA result D and post-hoc results D. Univariate ANOVA results – D Effect F-value D.F. p Intercept 1637.435 1; 249
Table 7: Univariate ANOVA results F and post-hoc results F. Univariate ANOVA results – F Effect F-value D.F. p Intercept 1391.993 1; 249
Table 9: Univariate ANOVA results H and post-hoc results H. Univariate ANOVA results – H Effect F-value D.F. p Intercept 373.3094 1; 249
Table 11: Univariate ANOVA results J and post-hoc results J. Univariate ANOVA Results – J Effect F-value D.F. p Intercept 1432.773 1; 249
Table 13: Univariate ANOVA results L and post-hoc results L. Univariate ANOVA results – L Effect F-value D.F. p Intercept 1448.886 1; 249 6 years); (fossil fuel and renewable energy); (researchers and industry practitioners); (South Africa and other SADC countries) and (senior manager, middle manager and junior manager). Rejected The significant positive support of South Access to modern energy for rural communities Africans for green energy as shown by the results could be a catalyst for economic development to can be explained by evidence that indicate the dismantle the frontier of poverty that confronts both country’s current upsurge in investment into green urban and rural citizens in the SADC region. In energy. Senior managers in the whole region are order to enhance the energy situation adequately in also more optimistic about the transition compared the SADC region, energy demand and supply con- to respondents in the middle and junior positions. straints must be identified with specific programmes The study found that energy practitioners in SADC that are oriented towards rural and urban commu- region generally support a transition to green ener- nities separately. At a national level, clear targets gy sources and there is consensus that the uptake of must be defined for green energy penetration into green energy will be slow initially, driven by low the energy market. Interaction between public and costs of fossil-based sources, but the uptake will private sector is imperative in order to identify eventually grow and contribute to the mitigation of viable sources of green energy that must be priori- greenhouse gases and global warming challenges. tised in a specific locality in the SADC region. 88 Journal of Energy in Southern Africa • Vol 27 No 4 • November 2016
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