Meeting the Urban Energy Challenge
The Challenge
Lack of Access
In many countries around the world, people are moving from rural areas into cities and towns in the hope of better jobs and futures. The growth of these urban areas has put additional pressure on already strained infrastructure, institutions and natural resources. Cities and towns are facing increasing difficulties in meeting the energy needs of their growing populations and expanding commercial, industrial, and transportation sectors. In some countries, electricity and other modern energy services may only reach a relatively small percentage of urban populations. For example, in Angola, less than half of the people living in the towns and capital, Luanda, have access to electricity. Typically, energy shortages and unreliable and inefficient delivery systems lead to frequent blackouts. Businesses rely on expensive back-up generators, hindering the country's economic growth and competitiveness.
Air Pollution
Energy use by vehicles, industry, businesses and residences has resulted in high levels of ambient air pollution in most major cities. In addition to outdoor air pollution, many people in developing countries are exposed to air pollution inside their homes from burning fuelwood, crop residue, or dung in inefficient and poorly ventilated cookstoves. Indoor and outdoor air pollution has been linked to hundreds of thousands of cases of premature deaths and respiratory illnesses. A recent World Bank study shows that the social costs due to the health impacts of fuel combustion across six major cities in developing countries amount to about $2.6 billion per year.1 Particulates from fuel combustion by vehicles and household stoves are the leading cause of these health problems.
Inefficient Use of Energy
The inefficient use of energy wastes money and natural resources, and pollutes the environment. By managing energy wisely and using more efficient technologies and practices, urban residents and businesses can save on their energy bills and reduce air pollution. Similarly, industries can lower their production costs, reduce their emissions of air pollutants, and improve their bottom line. Improving energy efficiency is usually a more cost-effective approach than supplying more energy to meet the growth in demand for energy in urban areas.
This plethora of urban energy problems stem from the adoption of inappropriate policies and regulatory regimes; the use of outdated management practices or polluting technologies; the limited availability of financing mechanisms; and the lack of public awareness and access to information. Failure to address these issues undermines a city's ability to provide a healthy and productive environment for its residents, attract foreign investment, and improve its competitiveness in the global economy. In short, without access to reliable, affordable and clean energy, cities cannot offer their citizens the level of municipal services and the quality of life that accompany economic prosperity and good governance.
The USAID Strategy
USAID's strategy is to provide energy producers and users with energy-wise policies, management tools, and information conducive to changing old behaviors and influencing new investments. Together with government officials, industry leaders, public or private sector institutions, and non-governmental organizations in developing countries, USAID and its U.S.-based partners work to:
- strengthen the capacity of institutions to develop and implement polices that promote equitable access to clean energy services; encourage energy efficiency; and reduce urban air pollution;
- support the development and application of tools, technologies, and practices for the efficient production and use of clean energy; and
- increase public awareness and participation in the development of clean and reliable energy services.
1 Lvovsky, K., G. Hughes, D. Maddison, B.Ostro, and D. Pearce. (2000) Environmental Costs of Fossil Fuels: A Rapid Assessment Method with Application to Six Cities, World Bank.
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