More than two billion people worldwide (approximately 35 percent of the world's population) depend on traditional biomass fuels for the bulk of their energy needs. Many more rely on kerosene lanterns, diesel generators, and coal-fired power plants. However, the economic and environmental cost of these technologies is high. Small-scale (and often renewable) energy systems offer a viable alternative to these carbon-intensive energy sources that could both further sustainable development and improve human health. The research and development base, institutions, market policies, and training that will be needed to sustainably implement such systems are only beginning to appear, however.
This article examines the institutional capacity - for training, research, outreach, commercialization, and implementation - of a variety of organizations that are attempting to promote renewable and "appropriate" fossil fuel energy systems. The overall message is clear: While small-scale, decentralized systems can play a significant role in meeting the combined challenges of development and environmental conservation, there has been a general pattern of neglect of and underinvestment in such systems.(1) Although a number of organizations are focusing on these "mundane" technologies, they frequently suffer from inadequate financing and political support.
There is now an important opportunity for even very modest investments to produce disproportionately large returns. Sustained support for environmentally benign energy systems by U.S. energy, development, health, and environmental organizations and their foreign partners could do more for sustainable development and individual well-being than almost any other effort at international energy cooperation. At the same time, ill-conceived or half-hearted actions could do just as much to harm the further development of clean energy systems.
Potential Gains
Recent efforts to expand the use of traditional, small-scale fossil fuel and renewable energy technologies have resulted in dramatic improvements in performance, market power, sales and leasing opportunities, and end-user satisfaction in both developed and developing nations. Examples of these improvements include the growth of electricity minigrids using diesel or renewable energy sources, as well as the widespread introduction of improved cookstoves, photovoltaic solar home systems, wind turbines for household and small enterprise use, small hydroelectric generators, and biomass energy systems. Some of these technologies have already had a significant impact on local patterns of energy use, economic activity, and the environment.
In the Inner Mongolian Autonomous Region of China, for example, an estimated 130,000 small-scale (200- to 1,000-watt) wind energy systems were in operation in 1995, providing electricity to more than 500,000 people (about one-third of the population). The alternative sources of power in this country are grid electricity (more than 90 percent of which is generated by coal) and stand-alone diesel generators. Thus, wind-generated electricity represents a substantial avoidance of greenhouse gas emissions while providing a basic service to a rural population.(2) The success of the program was achieved through careful planning and the creation of an effective regional and local infrastructure for manufacturing, sales, maintenance, and training. This included the development of a market for individual household systems through various subsidy mechanisms. The government of Inner Mongolia also recognized and allowed for the long lead time and sustained level of support necessary to create a thriving local industry.
The project has also led to technology transfers at many levels, both between the Inner Mongolian Autonomous Region and other countries and among various national, regional, and local organizations within China. Discussions are also under way in other parts of China and other Asian and Southeast Asian nations about replicating the program, but so far there is not enough institutional capacity to support such ventures despite strong interest by governments, nongovernmental organizations (NGOs), and the private sector.
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