Jamila Gilliam
University of Massachusetts Boston
April 1, 2016
Social Enterprise Entrepreneurs and National Biogas Programs/Partnerships as
Dissemination agents in Ethiopia
Introduction
This analysis of Ethiopia’s complex socio-ecological system focuses on economic, social,
environmental, political, and financial forces as well as boundaries to the successful
adoption of biogas technology. Here I analyze the country’s major economic indicators,
as Ethiopia is one of the most rapidly developing countries in Sub-Saharan Africa with
ambitious aims for sustainable development. I briefly discuss current renewable/clean
energy projects and initiatives, public health issues as a result of the continued use of
biomass for cooking in rural areas, review most recent studies on this topic, and key
organizations involved in the biogas diffusion process. The stakeholder analysis also
serves as a conceptualization of the organizational & institutional linkages in the system
as they work toward successful dissemination of biogas digesters and energy
efficient/biogas cook stoves in rural areas of Ethiopia. The concluding section will
include ideas for further research.
As Ethiopia continues pushing forward with policy initiatives in alignment with
its newly released Growth and Transformation Plan II (GTP II), climate change,
mitigation of green house gas emissions, and climate adaptation are center of focus.
Hydropower, and wind energy have been gaining traction as the major agenda is set to
build climate resilient economy (GTP II, 2016).
Background
According to World Bank data 81% of Ethiopia’s total population (~90,000,000) was
comprised of people living in rural areas of the country. In addition USAID reported that
only 8% of rural Ethiopia currently has access to electricity and ~92% are continuing to
use biomass (mainly wood and coal) for cooking over open fire or extremely inefficient
stoves/equipment (usaid.gov). While this traditional technique adds to Ethiopia’s
deforestation crisis (~12% forest area coverage left), indoor air pollution claims
thousands of lives each year (World bank, 2016). Women and children are most
negatively impacted as they are constantly exposed to “black carbon” smoke inhalation.
This unsustainable practice ultimately adds to the overall global climate change issue.
However, Ethiopia is especially vulnerable to climate change but has barely contributed
to green house gas emissions and the overall global climate change problem on an
aggregate level.
Sustainable Energy Development - Renewable Energy projects
Hydro- power
For the purposes of this study I will briefly mention the current state of Ethiopia’s major
renewable energy projects. The two major hydro projects in Ethiopia are the Grand
Ethiopian Renaissance Dam (GERD) on the Blue Nile River and Gilgel Gibe III on Omo
River. Hydropower is one of the most widely operationalized renewable energy
technologies in the country at this time. Despite tensions between Ethiopia, Egypt, and
Sudan, an agreement to continue building the Grand Ethiopian Renaissance Dam
(GERD) has been met. According to Ethiopia officials the dam is expected to produce at
least 750 megawatts of power within 18 months of operation, with a total capacity of
generating 6000 MW. The project is fully funded by the Ethiopian government through
“domestic sources” and bonds sold to the public (unfccc.int). Gibe III has begun
operation (generating electricity) with a stated capacity of 1870 Megawatts at a cost of
$1.8 billion. Gibe II is situated 94 miles down stream from Gibe III (GTP II, 2016).
However, Gibe III is expected to supply half of its electricity to Ethiopia while exporting
the remaining to Kenya, Sudan, and Djibouti (hydroworld.com). While officials continue
meetings and discussions regarding water share concerns between the three countries and
potential impacts of the GERD, an agreement was reached in March of 2015 to continue
construction. Ethiopia is very vulnerable to its fluctuations in rainfall and with severe
flood and drought events occurring on a regular basis (based on historical trends),
hydropower will be complimented by wind energy as it is also a major part of its
sustainable energy development plan (epa.gov.et).
Wind energy
Adama II wind farm is currently considered the largest in Sub-Saharan Africa
and is located 100 kilometers southeast of Addis Ababa. This particular farm
has a 153 MW capacity and began generating energy in 2015. The first Adama
wind farm was built in 2011 with a 51 MW capacity. Also, the 120 MW
Ashegoda Wind Farm opened in October 2013 (esi-africa, 2016; GTP II, 2016).
Geo-thermal
According to USAID, Power Africa, an initiative mobilized by the Obama
administration, has provided energy development support through technical assistance
throughout the negotiation process of Ethiopia’s new renewable energy financing
initiatives. The Corbetti Geothermal Power Purchase Agreement announced in August of
2015 is one of the newest achievements of the initiative (usaid.gov).
Biogas
Biogas is a clean, sustainable alternative energy source to biomass. It is a combination of
gases (methane and carbon dioxide) produced through the anaerobic breakdown of
organic matter (e.g., animal or human waste, food waste or plant material) ultimately
creating energy. Biogas energy can be used for cooking, heating, electricity and even
transportation. Biogas is also considered favorable from a financial perspective as it has
generally low capital requirements, especially when compared to “conventional
centralized power systems” (Mwirigi et al., 2014; Karekezi, 2002)
Biomass and Public Health
While access to electricity service coverage has increased 13.2% between 2009 and 2013,
approximately 70% of Ethiopian households continue to depend on biomass (wood,
dung, sawdust) for cooking (GTP II). Traditional cooking practices in Ethiopia have not
only significantly contributed to Ethiopia’s deforestation problem, but have also become
a major public health issue. According to World Health Organization, Ethiopia is among
the countries worst affected with a national burden of health due to indoor air pollution
(WHO, 2004). Premature deaths are occurring due to acute lower respiratory infections
(ALRI) amongst children younger than 5 years of age, while adults suffer and die from
chronic obstructive pulmonary disease (COPD) and lung cancer. According to most
recently available information regarding this energy poverty crisis, in 2002 more than
95% of Ethiopia’s population was still depending on solid fuels (biomass) for cooking
and heating. The total number of deaths due to solid fuel use was approximately 56,700
in 2002 (WHO, 2004).
Major Economic Indicator Analysis and Climate Health/impact Indicators
With Ethiopia being one of the most rapidly developing countries in the Sub-Saharan
Africa region it is important to note the current economic status of country. The first half
of this brief analysis covers gross domestic product in US dollars, poverty levels,
population growth, and foreign direct investment. The second half covers forest area
coverage, carbon dioxide emissions, fossil fuel energy consumption. According to World
Bank “economic growth brought with it positive trends in reducing poverty, in both
urban and rural areas.” Please refer to GDP chart in figure 1 and poverty level chart in
figure 2. Although population growth is increasing as shown in figure 3, fossil fuel
emissions continue to increase (figure 6) on an aggregate level and deforestation is an
ongoing problem as shown in figure 5. In order to continue rapid economic development
in a sustainable way as planned and stated in GTP and GTP II, biogas dissemination will
need to be set as a priority. The diffusion of biogas technology will provide opportunity
for job creation, entrepreneurship, improvements in public health, and better waste
management in rural and urban areas.
Figure 1.
120
100
80
60
40
20
2019
2016
2013
2010
2007
2004
2001
1998
1995
1992
1989
1986
1983
0
1980
U.S. dollars (Billions)
Ethiopia GDP: $63Billion- up 15% from 2014, projected to reach $100B by 2020
Source: IMF World Economic Outlook (WEO), October 2015
Figure 2.
% of population
Ethiopia Poverty Level: 36.8%
70
60
50
40
30
20
10
0
1995
1999
2005
2010
Source: Poverty and Equity Database, 2015
** Population below $1.25 a day is the percentage of the population living on less than $1.25 a day at 2005
international prices.
Figure 3
4
3.5
3
2.5
2
1.5
1
0.5
0
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
2005
2008
2011
2014
%
Population Growth: 2.5% in 2014
Source: World Development Indicators (WDI), February 2016
Figure 4.
Foreign Direct Investment: 2.2% of GDP in 2014
Climate Health/impact Indicators
Figure 5
Forest Area: 12.4% of Land Area in 2014—of the 51% in 1980s
Figure 6.
Total Carbon Dioxide Emissions from Fossil Fuels: 2, 057 Metric tons of carbon in 2011
Literature Review
The majority of research conducted in this area has focused attention toward the
challenges faced in reference to socio-economic factors, feasibility in regards to
affordability of biogas, and biogas cook stoves on micro and macro-economic levels
(e.g., household cost-benefit analyses, credit availability, external investment inflows),
and substitute technologies as competition.
In Gwavuya, Abele, Zeller & Muller’s article (2012) titled Household Energy Economics
in Rural Ethiopia: A Cost-Benefit Analysis of Biogas Energy, the authors found that
biogas plants yield positive net present values (NPVs) for households collecting their
own energy sources but even higher NPVs for households that purchase all of their
energy needs as they benefit from cost savings through the use of biogas technology (p.
202). However, Gwavuya et al., suggests that those results would be highly dependent on
the effective marketing and promotion of slurry use for agricultural fertilizer as part of
the overall biogas technology dissemination strategy and consumption package (2012:
202).
In their article titled Clean Fuel-Saving Technology Adoption in Urban Ethiopia, Beyene
& Koch (2013) argued that technical issues and ineffective marketing strategies were part
of the dissemination problem. Beyene & Koch also argued that while previous studies
focused on the “dichotomous decision to adopt new technologies”, none had considered
the timing of adoption (p. 606). The authors conducted the analysis through examining
the correlation between the speed of adoption of Mirte and Lakech improved biomass
cooking stoves and socio-economic factors pertaining to families in urban Ethiopia. This
particular study is unique in the way that it draws attention to the biogas dissemination
problem in urban Ethiopia. The authors argued that there was a lack of focus in that area.
However, although many have studied biogas technology dissemination challenges in
rural Ethiopia, I would argue that there is a need for further analysis as households in
those particular regions are most vulnerable to climate change impacts and more likely to
suffer life-threatening health disease from indoor pollution.
Mwirigi, Balana and Mugisha (2014) also studied socio economic factors and view socioeconomic factors as constraints. The authors argue socio-economic factors have had
negative impacts on the successful adoption of biogas in Sub-Saharan Africa as a whole.
Mwirigi et al., identified socio-economic factors used in a study conducted by Demarest
et al. (1993) including household income, education, head of household occupation.
Mwirigi et al. applied “access to water” as an additional constraining socio-economic
factor considering it’s need for use in the mixing and biomass digestion process.
Mengistu, Simane, Eshete & Workneh (2016) took a slightly different approach and
examined “factors that influence household’s decisions on biogas technology in Northern
Ethiopia” (p. 215). Their extensive study included 179 biogas user households and 179
non-user households. Study participants (respondents) were selected using “proportionate
simple random and purposive sampling techniques” while data was collected using semistructured questionnaires (p. 215). Results showed that in households where males were
“heads” they were more likely to adopt the biogas technology than in female-headed
ones. Mengistu et al., also determined that based on their data analysis “Educational
level, heads of cattle, income level, access to credit, distance to the main fuelwood
source, and number of planted trees have significant (p < 0.01) positive influences on
adoption of biogas technology” (p. 215). The authors concluded that by “empowering
females and female-headed households, improving educational levels of the household
heads, increasing cattle size, raising income levels, improving access to credit, and
encouraging households to plant more trees” would be viable solutions to the biogas
dissemination problem. Mengistu et al. also touched on the issue of business and market
strategy development (e.g., “upgrading the existing biogas model through addition of
‘injera’ stove”) to better appeal to potential consumers of biogas energy (2016: 215).
Key Organizations Impacting Change - Biogas Dissemination
As listed in the chart below, there is a large network of actors and stakeholders impacting
change in Ethiopia. The organizations along with the Ethiopian government are taking on
the challenge of diffusing biogas technology across regions and aiming for a robust
sustainable biogas energy sector. The level of connection between each actor in the
network is important considering the fact that they are all working toward a common
goal. Horn of Africa Regional Environment Center & Network (HoARec) has played a
key role in the successful development and establishment of B-Energy in Ethiopia and
continues to promote and support the organization (hoarec.org). B-Energy is a relatively
new social enterprise founded in July of 2014 by Katrin Puetz out of Germany.
B-Energy is providing entrepreneurship opportunities and better access to biogas
in Addis Ababa and other areas of the country. Ethiopia’s Climate Innovation Center,
which is also associated with HoARec and Addis Ababa University provides business
development resources to clean tech start-ups and is currently supporting GM Clean
Energy. GM Clean Energy is currently developing the innovative Injera biogas stove and
composite Mitad.
The African Biogas Partnership Program (ABPP) has been in operation since the
1970s and has struggled in the past with effectively carrying out its mission. According to
ABPP, it has recently experienced growth with only 98 digesters installed in 2008 and
2260 installed by 2015 total. ABPP stated that key implementation challenges are “weak
private sector development, lack of credit facilities in some regions, poor commitment of
stakeholders at regional levels, and rising costs of construction material”
(africabiogas.org). However, B-Energy founder Katrin Puetz, indicated in an interview
with BBC News that B-Energy plans to join Ethiopia’s National Biogas Program
(bbc.com). ABPP has ambitious plans to build 14000 biogas digesters in 4 regions of
Ethiopia: SNNPR, Oromiya, Amhara, and Tigray.
Organization/Institution
Type
Horn of Africa Regional
Environmental CenterSustainable Energy ProgramBiogas Transport
NGO
B-Energy
Social Enterprise
(For profit)
Biogas Related Mission
Make biogas more readily
available to communities,
promotion, demonstration and
support B-Energy project
Provides households in rural
Africa, Asia, and Latin America
with access to cooking biogas in
an innovative, entrepreneurial,
technical, and ecological manner,
providing mobile biogas solutions
that produce, store, transport and
use biogas for cooking from
organic waste
(biogas balloon backpacks)
Climate Innovation Center
Incubator
Provide early-stage financing,
business support Ethiopian
GM Clean Energy – private sector, including women
Injera biogas stove and rurally based entrepreneurs
and composite
and business owners
Mitad
Africa Biogas Partnership
Program
NGO
Multi-level
stakeholder model
Government,
private sector, civil
society, donors,
users
Main objective: to develop a
commercially viable domestic
biogas sector in Ethiopia-Specific objectives: to attract and
strengthen institutions and
organizations for development of
a national biogas sector, construct
14,000 biogas plants in the 4
selected regions over 5 years,
ensure continued operations of
plants installed under NBP and
maximize benefits of all biogas
plants installed.
http://www.bibalex.org/Search4
Dev/files/284294/116537.pdf
Conclusion
As Ethiopia continues on its rapid economic development path while aiming for
continued reductions in poverty levels and green house gas emissions, sustainable energy
development is one of the main goals. In order to effectively disseminate biogas and
establish it as a stable, reliable source and sector, more private sector engagement is key.
Public Private Partnerships will allow for more private sector involvement, opportunities
for marketing strategy collaborations and increased user accessibility. The adoption of
biogas in rural areas will not only help reduce green house gas emissions, and reduce
methane pollution but will also relieve the Ethiopian families of health risks associated
with traditional biomass cooking practices. A network of Ethiopian government led and
funded biogas business incubators with a multi-level stakeholder model could accelerate
the dissemination rate. The incubator would provide technical training, network
connections and other business development resources.
While many studies have focused on socio-economic factors as boundaries to the biogas
dissemination issue, I would take a closer look at cultural factors. Although researcher
have concluded that women are less likely to adopt the technology and that they also
need to be further educated, I would investigate the roles that culture, tradition, resistance
to change might play in decisions to adopt biogas for cooking.
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