Haïti: Stratégie pour atténuer la pression de la demande de combustible sur les ressources nationales en bois

Energy Sector Management Assistance Program Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Woodfuel Resources ESMAP Technical Paper 112/07 April 2007 Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Woodfuel Resources Technical Paper 112/07 40239 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Energy Sector Management Assistance Program (ESMAP) Purpose The Energy Sector Management Assistance Program (ESMAP) is a global technical assistance partnership administered by the World Bank and sponsored by bi-lateral official donors, since 1983. ESMAP’s mission is to promote the role of energy in poverty reduction and economic growth in an environmentally responsible manner. Its work applies to low-income, emerging, and transition economies and contributes to the achievement of internationally agreed development goals. ESMAP interventions are knowledge products including free technical assistance, specific studies, advisory services, pilot projects, knowledge generation and dissemination, trainings, workshops and seminars, conferences and round-tables, and publications. ESMAP work is focused on four key thematic programs: energy security, renewable energy, energy-poverty and market efficiency and governance. Governance and Operations ESMAP is governed by a Consultative Group (the ESMAP CG) composed of representatives of the World Bank, other donors, and development experts from regions which benefit from ESMAP’s assistance. The ESMAP CG is chaired by a World Bank Vice-President, and advised by a Technical Advisory Group (TAG) of independent energy experts that reviews the Program’s strategic agenda, its work plan, and its achievements. ESMAP relies on a cadre of engineers, energy planners, and economists from the World Bank, and from the energy and development community at large, to conduct its activities. Funding ESMAP is a knowledge partnership supported by the World Bank and official donors from Belgium, Canada, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom. ESMAP has also enjoyed the support of private donors as well as in-kind support from a number of partners in the energy and development community. Further Information For further information on a copy of the ESMAP Annual Report or copies of project reports, please visit the ESMAP Website: www.esmap.org . ESMAP can also be reached by E-mail at esmap@worldbank.org or by mail at: ESMAP c/o Energy and Water Department The World Bank Group 1818 H Street, NW Washington, D.C. 20433, U.S.A. Tel.: 202.458.2321 Fax: 202.522.3018 ESMAP Technical Paper 112/07 Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Woodfuel Resources Energy Sector Management Assistance Program (ESMAP) Small and medium size energy providers ENERGY SME PROGRAM Ministry of Environment Bureau of Mines and Energy REPUBLIC OF HAITI Copyright © 2007 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in India First printing April 2007 ESMAP Reports are published to communicate the results of ESMAP’s work to the development community with the least possible delay. The typescript of the paper therefore has not been prepared in accordance with the procedures appropriate to formal documents. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations and conclusions expressed in this paper are entirely those of the author and should not be attributed in any manner to the World Bank or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the ESMAP Manager at the address shown in the copyright notice above. ESMAP encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. (Papers in the ESMAP Technical Series are discussion documents, not final project reports. They are subject to the same copyright as other ESMAP publications.) iii Abbreviations and Acronyms vii Conversion Table ix Units of Measure xi Acknowledgments xiii Executive Summary xv 1. Introduction 1 2. Evolution of Haiti’s Energy Situation 3 Current Status 3 Energy Prices 4 3. Energy Consumption 7 Domestic Sector 7 Cooking Habits and Meals 7 Used Fuels and Equipment 8 Small and Medium Enterprises and Services 10 Energy Consumption and Costs 11 Electricity Sector 12 Industrial Sector 13 Transportation Sector 13 4. Energy Sources 15 Firewood 15 Charcoal 16 Consumption Level 16 Charcoal Production 18 Observed Quantities 20 Charcoal’s Economic Contribution 21 Charcoal’s Economic Costs 23 Bagasse 23 Hydro Energy 24 Oil Products 24 5. Potential Energy Resources and Perspectives 27 Potential Forest Resources 27 Contents REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES iv Potential in Other Resources from Biomass 30 Hydro Energy Potential 31 Coal Potential 31 Potential in Other Durable Energy Sources 32 6. Energy and Environment 33 Local Environment 33 Global Environment 34 Environment and Health 35 7. Legal and Regulatory Framework 37 Land Law 37 Evolution of Environment Laws in Haiti 38 First period: 1804-80 38 Second period: 1880-1950 38 Third period: 1950-95 38 Fourth period: from 1995 to nowadays 38 Legislation in Vigor 39 The 1987 Constitution 40 The July 7, 1987 Decree 41 8. Analysis of Haiti’s Energy System 43 9. Updated Strategy for Household Energy 45 Substitution Fuels 48 Gas 48 Kerosene 50 Mineral Charcoal (Coal) 50 Demand-side Management 51 Improved Stoves 51 Stoves using Kerosene or LPG 52 “Eco” Quality Label 52 Energy Use in the Services Sector 52 Others 53 Alternative Fuels Production 53 Briquettes made from charcoal fines 54 Briquettes made from carbonized agricultural residues 54 Agricultural surplus residues 54 Briquettes made from used paper and other municipal residues 55 Ethanol 55 Strengthening the Supply 55 Regulatory Framework 57 Expected Results 59 Strategy Costs 62 Implementation Mechanisms 64 10. Economic Analysis 65 Fuel Consumption Benefits 67 Environment Benefits 68 Health Benefits 68 11. Conclusions 71 v v Tables Table 2.1: Secondary Energy Consumption, ktoe, 2003 4 Table 3.1: Characteristics of Fuels 11 Table 4.1: Quantities of Charcoal Observed in Port-au-Prince during One Week 17 Table 4.2: Firewood Consumption Estimates, 1993 18 Table 4.3: Results of Complementary Surveys 21 Table 4.4: Charcoal’s Price Structure 22 Table 5.1: Haiti’s Woodfuel Resources Evaluation in 1989 27 Table 5.2: Forest Statistics 28 Table 5.3: Production of Selected Agricultural Products 30 Table 9.1: Evaluation of Strategic Options 47 Table 9.2: Distribution of Costs by Components, in US$000 62 Table 10.1: Summary of Costs and Benefits 66 Figures Figure 2.1: Price of Fuels (in gourdes) 5 Figure 3.1: Costs of Cooking Fuels (1980 gourdes) 12 Figure 4.1: National Household Energy Consumption (%) 2003 15 Figure 9.1: Summary of Options 47 Figure 9.2: Household Energy Demand (MJ/yr) 60 Figure 9.3: Evolution of Fuels 61 CONTENTS Abbreviations and Acronyms BME Bureau of Mines and Energy BoDs Board of Directors CARE International humanitarian NGO CCI Interim Cooperation Framework (Cadre de Coopération Intérimaire CDM Clean Development Mechanism CIDA/ACDI Canadian Agency for International Development ECMU Environmental Country Monitoring Unit EdH Electricity of Haiti (Electricité d’Haïti) ESMAP Energy Sector Management Assistance Program FAO Food and Agriculture Organization GDP Gross Domestic Product HES Household Energy Strategy IPR Internal Profitability Rate IRR Internal Rate of Return LPG Liquefied Petroleum Gas NGOs Non Governmental Organizations NPV Net Present Value OPDES Office Post-Désastres et de Secours ORNL Oak Ridge National Laboratory PAE Environment Action Plan PV Photovoltaic RE Renewable Energy SMEs Small and Medium Enterprises SPC Service of the Civil Protection (Service de la Protection Civile) UNDP United Nations Development Programme UNDEERC Research Center on Energy and Environment, University of Dakota USAID United States Agency for International Development WHO World Health Organization vii ix Conversion Table Type of Fuel Barrel/toe Toe/Ton LPG 10.79 Gasoline 8.10 Kerosene 7.38 Diesel 7.34 Fuel Oil 6.83 Lubricants 7.22 Crude Oil 7.17 Charcoal 0.70 Firewood (20%) 0.39 Bagasse (50%) 0.18 1 Toe = 10 9 calories 1 m 3 is equivalent to 625.00 kg 1 GWh = 86.0 toe 1 stère “ “ “ 468.75 kg 1 Toe = 0.01163 GWh 1 bag “ “ “ 35.00 kg ha=hectare=10,000 square meters Exchange Rate US$1 = 40 Haitian Gourdes Haitian $1 = 5 Gourdes xi Units of Measure bbl Barrels BTU British Thermal Unit GWh Giga Watt (s) Per Hour ha Hectare (s) kg Kilogram (s) km 2 Square Kilometer (s) kT Thousand Ton ktoe Thousand Tons of Oil Equivalent kWh Kilo Watt (s) Per Hour lb Pound(s) m 3 Cubic Meter m 3 /ha Cubic Meters Per Hectare (s) MJ Mega Joule MW Mega Watt (s) (10 6 Watt) toe Ton Equivalent of Oil W Watt xiii This report was the result of activity P092032 Haiti: Scoping Study for Household Energy Strategy financed by the World Bank’s Energy Sector Management Assistance Program (ESMAP). The fundamental objective of this work was to provide the government and the Bank with a better understanding of the issues and options for improving household energy services and ensuring affordable and sustainable domestic fuel supplies. Both the Ministry of Environment and the Bureau des Mines et de l’Energie committed a substantial amount of time and resources to the Study which was formalized through a memorandum of understanding signed by the Bank and by the Haïtian Government. The Bureau des Mines and Energy, the Ministry of Environment covered all expenses related to the survey on woodfuel flows in/from Port-au-Prince, and the Bureau des Mines et de l’Energie assigned two staff for the realization of the survey work related to the charcoal production areas and the informal flows of charcoal with the Dominican Republic. The invaluable assistance provided by the Haitian staff, and the commitment of resources to conduct the one-week survey in Port-au-Prince brought significant leverage to ESMAP funds, and were reflected in the scope and quality of the resulting work. The main author of this report was Mr. Robert Van der Plas. Bétonus Pierre, Jean-Robert Altidor, Edgar Jeanniton, Wista Delice and Jean Chesnel Jean wrote background documents that were incorporated & summarized in the main text. Ghislaine Kieffer provided invaluable comments and editing remarks on the original French version of the report. Thanks also go to Mr. Douglas F. Barnes, Senior Energy Specialist, ESMAP who reviewed the final draft and provided valuable comments. Special thanks to CINER’s staff who undertook the task of editing the French version and carrying out the English translation. To the ESMAP communications team staff Ms. Marjorie K. Araya for proofreading the English version and overseeing the overall production process together with Ms. Ananda Swaroop. Acknowledgments Haiti suffers from a serious deterioration of its natural environment and, in particular, from a heavy pressure on its natural resources. The reasons for this deterioration are multiple (poverty level, demographic pressure, agricultural techniques and insecurity regarding land tenure) and, therefore, go beyond the strict scope of energy. However, the woodfuel consumption is one of the main factors of this deterioration. On a national scale, about 70 percent of the energy needs are met using firewood and charcoal. Although the local woodfuel resources have been overexploited for more than 20 years, the price of woodfuels does not reflect this scarcity phenomenon which constitutes a serious ecological threat at the countrywide level. The household energy sector remains, by far, the main consumer of woodfuels, in as much as it absorbs 70 percent of the overall supply. However, this sector is characterized by very low efficiency in terms of use outputs. Consequently, due to financial constraints, the poorest households suffer from a double disadvantage: they use inefficient traditional stoves, while paying the highest unit price for their cooking fuel. Beyond its environmental impact, the massive use of firewood rests on important economic foundations, as this resource constitutes a source of activity and nonnegligible income in an impoverished farming environment, generating on an average 16 percent 1 of the rural income, and employing a substantial workforce in the context of chronic underemployment. A fair portion of the poor population depends on wood transformation activities to earn their living in the rural areas, and on the availability of firewood for their daily cooking in the urban areas. Thus, the strategy proposed for reducing the pressure on the national wood resources aims, above all, to reach a sustainable balance between the supply and demand for cooking fuels. Executive Summary 1 Haiti: The Challenges of Poverty Reduction, August 1998, page 3. xv REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES xvi In July 2004, thanks to a financial contribution provided by the Energy Sector Management Assistance Program (ESMAP), a survey was launched to update theHousehold Energy Strategy (HES) in Haiti, based on a diagnosis of currently available experience and information. According to the initial data obtained and in consultations with the main actors involved, the general trends of the HES, identified by ESMAP back in 1991, not only had hardly changed, but had become more pronounced due to demographic growth. This is why the approach adopted by the present study is to carry out a critical review of past recommendations, by collecting essentially qualitative information through interviews and complementary investigations. Six surveys were thus developed in order to update the understanding of some key issues: • The fuel consumption in urban areas; • The incoming flux of charcoal in Port-au-Prince; • The charcoal production chain; • The production of industrial briquettes; • The cross-border flux of charcoal between Haiti and the Dominican Republic; and • The energy conversion of Small and Medium Enterprises (SMEs). During the design stage, it was decided that the strategy would target the demand and supply of cooking fuels, which is a part of the “alleviation of the pressure of fuel demand on national woodfuel resources,” the first of four priority axes identified by the environment sector round-table, organized by the Interim Cooperation Framework ( Cadre de Coopération Intérimaire, CCI ). The first part of the final document describes the current household energy situation, based on the outcome of complementary surveys jointly carried out by the Ministry of Environment, the Bureau of Mines and Energy (BME) and the ESMAP team. In the second part, the strategy brings forward some recommendations aimed at alleviating the pressure of energy requirements on national wood resources. The strategy comprises the following five components, of which the first one provides the basis for the whole document: • Update and apply rules and regulations, and set up an institutional coordination mechanism in order to support the proposed courses of action. This framework should especially promote: 1) improved land management by farmers; 2) efficient use of woodfuels; 3) imports and/or local manufacturing of more efficient stoves; 4) a mechanism to supply imported substitution fuels; and 5) manufacturing and/or imports of equipment required for producing substitution fuels from agricultural origin, such as briquettes; xvii • Reducing woodfuel demand, in particular by promoting more efficient stoves and by reviving the production of the “Mirak” model. This program will comprise the following actions: 1) a promotion campaign aimed at converting 80 percent of Port-au-Prince households; 2) a training program for artisans to manufacture improved stoves; and 3) the setting up of a quality and energy efficiency labeling system. This component aims at increasing efficiency by at least 20 percent, in order to reduce the charcoal demand by 50,000 ton/year or more, which would amount to reducing the national demand by 10 or 15 percent; • Promote alternative fuel imports with 200,000 ton/year charcoal substitution potential. Those fuels are: Liquefied Petroleum Gas (LPG), kerosene and coal. It is hereby proposed to: 1) promote potholders ( porte marmite ) and the supply of LPG in small quantities, to facilitate wider access to LPG for a greater number of households; and 2) launch a program for imported coal briquettes; • Foster local options to substitute charcoal and firewood. It is, therefore, proposed to revive the currently abandoned production of briquettes using charcoal fines, with a potential 35,000 ton/year, as well as using carbonized agricultural waste, principally bagasse, with 30,000 ton/year potential; • Boosting supply by promoting: 1) an upgrading of professional standards in the charcoal chains, which could almost double the occasional producers’ supply levels using wood; 2) the integration of firewood within the programs for rural development, such as watershed management areas, and forestry development; and 3) the promotion of a more effective and efficient management of forestry areas, through local community-based management systems, and through the introduction of a tax promoting “Sustainable Charcoal Production;” • The cost of implementing this strategy over a five-year period is estimated to be around US$20 million, with more than half of which could be covered by the private sector, with the following distribution of costs: demand-side management 14 percent, substitution 42 percent, production of substitutes 6 percent, supply-side management 33 percent, and regulatory framework 5 percent. The participation of the public sector amounts to about 47 percent, and focuses essentially on wood supply management 33 percent, demand-side management 6.2 percent, regulatory framework 5 percent and substitution fuels 2.5 percent. • The expected results are as follows: – The overall charcoal consumption would decrease by at least 20 percent over a 10-year period; – The consumption of coal, and of charcoal, would level after a 10-year period, LPG and kerosene consumption would at least grow twofold in 10 years; and – The indicated actions jointly developed allow us to anticipate a substantial reduction in charcoal consumption without social repercussions; however, after 11 or 12 years, the levels of consumption are likely to rise again as a result of demographic growth. SUMMARY REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES xviii • The strategy's impact can be summarized as follows: – Higher profits in fuel consumption: over a five-year period, the Net Present Value (NPV) could reach US$76.1 million as compared to the US$24.3 million costs NPV over the same period. Over a 20-year period, the referred amounts would be: US$593 million (profits) and US$90 million (costs). The profits do not include environment- and health-related aspects; and – The Internal Rate of Return (IRR) is expected to remain fairly elevated, at 89 percent over a five-year period, and 109 percent over a 20-year period. • Benefits in terms of environment and health. Over five years time, the reduction of CO 2 emissions would reach 3,200,000 tons and 99,400,000 tons over 20 years. The value of CO 2 has been calculated as US$10/ton. Therefore, the environmental benefits represent 4 percent of the consumption profits over five years (or 2 percent over 20 years). The level of environmental benefits, which could thus be reached, would nearly allow covering the costs of energy control. The positive effects on health should be equally underlined: reduction of smoke in the households, lower incidence of fire risks and, consequently, reduced risk of contracting diseases for the family members. The health-related benefits would raise the consumption profits by 11 percent over five years, or 7 percent over 20 years. 1 Had the 80s projections materialized, the last Haitian tree would have been cut down a few years ago. As not all trees have yet disappeared in Haiti, such alarmist forecasts should be taken with some precautions. No doubt, except for a few exceptions, today our natural forests have practically vanished; however, firewood and charcoal – both entirely derived from trees – are still available in the market, at relatively affordable prices, as compared to other types of fuel. All seem to indicate that isolated trees (growing in the fields and along the roads, etc.,) are currently providing a substantial part of the firewood supply. No other plausible explanation can be put forward, in the absence of a detailed inventory of woodfuel resources, taking into account the isolated trees, outside of the remaining forests. But, even if results of said inventory were available, the approach aiming at managing the household energy sector would probably not be substantially different. One might calculate more accurately when the last tree will be cut down from the forest, but no prediction can be made regarding isolated trees. It would be difficult to envisage an intervention at the forest level, given the large investments required for obtaining significant results. Firewood and charcoal are, therefore, likely to be used for many more years, or even decades. However, no one can tell exactly how long such types of fuel will be available, given the existence of some species such as the coppicing species Bayonde, which can be harvested over relatively short periods (three years). This vision, therefore, calls for immediate measures aimed at readdressing the current situation. The anticipated solution comprises several simultaneous approaches, in order to balance supply and demand for wood energy through a progressive use of substitute sources of energy: an increased return on the use of charcoal and a large scale planting of trees. The present study aims at updating the Household Energy Strategy (HES) in Haiti, elaborated in the early 90s, through a diagnosis of the experience and new data currently available. This review examines the supply and demand for woodfuels, in order to identify the components of a comprehensive and sustainable energy solution. Such an activity is part of the section “alleviating the pressure of energy needs on national woodfuel resources,” the 1. Introduction 2 REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES first of four priority axes identified by the sector environment table set up by the CCI. This activity strengthens the capacity of the BME to assist the Haitian Government in updating its household energy action plan. In order to identify the changes which occurred in the Haitian energy situation since the 90s, five complementary surveys were carried out 2 as a basis for a number of technical notes. These notes cover the following topics: • Forest resources and their contribution to wood supply (firewood, charcoal); • Description of the charcoal distribution chain, its organization, actors, production sites and sustainability elements (the impact of charcoal production on production sites and forestry resources); • Household energy consumption, urban and rural; • Substitution fuels, if any; and • The regulatory, institutional and fiscal frameworks and their positive or negative impact on wood resources, the charcoal exploitation and the production of other types of fuel used by households and small enterprises in Haiti (comparing, whenever possible, the impact of said elements on each of the types of fuel analyzed). The present document describes the current household energy status, incorporating the results of complementary surveys as well as other data provided to the team, and brings forward recommendations to solve the current household energy problems. 2 (i) group interviews and discussions with women in order to identify energy consumption issues; (ii) charcoal chain description; (iii) evaluation of incoming charcoal shipments in Port-au-Prince over a one-week period; (iv) assessment of the briquettes production potential capacity; and (v) evaluation of a burner conversion program among SMEs. 3 2. Evolution of Haiti’s Energy Situation Current Status In spite of the evident natural environment degradation, the country keeps covering, year after year, about 72 percent of its energy demand with the local resources, principally composed of firewood and charcoal (66 percent), as well as bagasse and hydro energy (4 percent and 2 percent respectively). The main difficulty related to wood energy is that existing resources have not been assessed but are heavily overexploited, thus aggravating the chronic woodfuel resources deficit. How long can such a situation last? Promotion of charcoal substitutes, which has been recommended multiple times, is not yet implemented, mainly due to a lack of political stability, an appropriate regulatory framework and funding, etc. Oil products cover the remaining 25 percent of the yearly energy demand, weighing heavy on the country’s commercial budget. The annual LPG consumption has considerably risen over the past few years, from 900 tons in 1991 to over 12,000 tons in 2004. LPG infrastructure has been developed and several companies (Sodigaz, Total Haïti and Ecogaz) currently import and distribute butane and/or propane gas. Ecogaz is supplied from the Dominican Republic, whose consumption is 60 times greater than Haiti’s and achieving significant economies of scale. Sodigaz and Total Haïti have established two storage centers. In spite of a minor price decrease, the LPG retail price remains beyond the population’s means, which explains why the use of LPG is limited to the well-off strata. Although many households consider LPG an ideal type of fuel, charcoal remains the only choice for them. Kerosene is mainly used for lighting in rural and suburban areas, and occasionally for daily cooking. Its annual consumption is 150,000 tons, a relatively low figure compared to the overall oil products imports. 4 REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES Table 2.1 indicates the energy consumption details by sector in 2003 (latest available data). Table 2.1: Secondary Energy Consumption, ktoe, 2003 Rural Urban Trade & Transportation Industry Total Households Households Services Firewood 862 17 35 113 112 991 55% Charcoal 161 170 196 11% Bagasse 66 66 4% LPG 28 9 37 2% Petrol 113 6% Kerosene 57 122 349 19% Diesel 12 19 19 1% Fuel Oil 16 12 40 2% Electricity 1,811 Total 862 279 47 283 340 1,811 100% 48% 15% 3% 16% 19% 100% Source: BME. Energy Prices Figure 2.1 shows the evolution of energy prices. LPG remains the most expensive source of energy, and charcoal (in bags), the cheapest. By the late 80s, kerosene was cheaper than charcoal bought by marmite. However, the current sale price is US$300/ton for charcoal, US$750/ton for kerosene and US$1,050/ton for gas. 5 EVOLUTION OF HAITI’S ENERGY SITUATION The charcoal price does not directly reflect the exhaustion of this primary resource caused by the overexploitation of trees in the Haitian territory. The rise in charcoal prices follows the rise of prices of other fuels. Figure 2.1: Price of Fuels (in gourdes) Energy Costs (80 gourdes MJ)) Year 1980 1986 1990 1995 2000 2005 Sources: ESMAP and BME. 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 – gourdes/MJ Charcoal Bag Kerosene Gas Charcoal Marmite 3. Energy Consumption Energy in Haiti is used in four main sectors: domestic (comprising households, the traditional industry – SMEs, trade and services), electricity, industrial (modern industry-large companies) and transportation (road, maritime and air). Domestic Sector This sector comprises rural households (60 percent), urban households in Port-au-Prince (25 percent) and other urban areas (15 percent), as well as the traditional industry in the commercial and services sectors (laundry, bakery, road restaurant, guildive, vétiver , etc.). The latter are small enterprises mainly depending on the same energy sources as households, firewood and charcoal. The domestic sector is by far the most important in terms of overall energy consumption. Its average share in the overall consumption is 70 percent, principally coming from biomass (wood, charcoal and agro-industrial waste). However, this sector has a very low energy efficiency use rate, particularly among the most destitute households. Such a low output mainly results from the lack of financial means to invest in more performing equipment, or in modern types of fuel. Cooking Habits and Meals As shown by the complementary surveys, consumption habits have barely changed since the 90s. The poorest households still depend on firewood and agricultural waste to cover their energy needs. As poverty worsens, the poorest households can no longer afford having three warm meals a day. Due to various types of constraints, women tend ever more to buy ready-made meals outside the home (if they leave early in the morning, or if they spend many hours away from home, working in small businesses such as the “ti machann,” or small trade) and have no domestic help to do the cooking for them, or when they lack the 7 8 REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES financial means to buy all the items required for preparing a meal. Mothers with infants try as much as possible to cook at least one warm home-made meal a day. In many cases, breakfast and supper are frequently reserved for children alone, given the lack of money to cook a meal for the entire family. The principal meal is generally lunch (taken at noon), or supper in the evening. In most cases, it is the only meal taken during the day, which is cooked at home, and shared by all members of the family. Cooking habits have hardly changed over the past years. People cook the same types of food, using the same cooking techniques. Breakfast generally includes eggs, boiled plantain or spaghetti. The main meal at noon usually comprises beans (dry beans), rice or maize, and meat with vegetables or salad. In the evening, supper usually consists of boiled grains (rice, cornflour, manioc flour, oat) or bananas. While breakfast or supper need fairly short cooking time, the midday meal requires a longer cooking time, particularly in the case of mashed dry peas ( sos pwa ). Other preparations take a longer time to prepare, such as meat stew, braised vegetables and braised “leaves” with meat. Due to economic and time constraints, housewives tend to prepare less elaborated meals, requiring less cooking time (rice and green, fresh peas, white rice, no meat, no mashed dry peas). It should be further noted that imported chicken, introduced in the Haitian market a few years ago, is currently largely consumed as it is much tenderer than the local chicken and its cooking time is much shorter. Haitian traditional cuisine is rich in recipes demanding longer cooking time. Used Fuels and Equipment The data available clearly show that charcoal remains the most used type of fuel. Among 70 women met during the survey, mostly from modest urban origin, only three do not use charcoal at present. The other fuels are, by order of importance, kerosene and propane. Wood and agricultural residues are generally used in rural and semi-rural areas. Charcoal is practically the only fuel available in towns, where people use it to address different types of needs. On the contrary, whenever it is used together with propane or kerosene, charcoal is frequently used to prepare time-consuming meals, 3 principally mashed dry peas, or boiled meat. For women mainly using gas, it is important to have a permanent reserve of charcoal, in case LPG is unavailable. The oil products embargo remains vivid in many Haitians’ memory. 3 This is explained by the energy costs: for each useful Mega Joule (MJ), charcoal is cheaper than LPG or kerosene. 9 Moreover, charcoal has the great advantage of requiring very low-cost equipment: an ordinary stove can be purchased with as little as 30 gourdes, and an improved burner, such as the “Mirak,” for 150-200 gourdes, whereas a kerosene burner costs some 300 gourdes or more. According to the model, an “eco LPG” burner costs 1,500 gourdes and a propane stove 20,000 gourdes. “Mirak” burners cannot be found at moderate prices for several reasons, especially because it is increasingly difficult for artisans to find low-cost metal, the basic material. Charcoal can be found almost everywhere, in all types of quantities, and at any given time. Besides, it does not require a special space to be used: if one does not possess an oven, the charcoal stove can be used outdoors as well as indoors, and it is easily stored and transported. Additionally, people consider it safer to manipulate charcoal than kerosene or gas. On the other hand, charcoal is seen as a “dirty” fuel: it blackens cooking pots, generates ashes which spread all around, and stains the cooking area. Another drawback is the fact that combustion cannot be controlled. Although wood can be obtained free of cost, it has a negative image, due to the nuisances caused during its use. It has a lachrymator effect, its caustic and suffocating smoke affects the eyes, its unpleasant smell impregnates food, and one has to constantly maintain its combustion. Finally, if there is no appropriate stove, wood has to be burnt outdoors which is not feasible on rainy days. Kerosene’s main advantage is that it allows fast cooking. Kerosene stoves are much cheaper than propane stoves and burners. Besides, kerosene is sold on a retail basis: at the time the surveys were conducted, it was being sold by gallons, liters and even in small 16 oz/ 476 ml quantities, at 14 gourdes. Yet, kerosene has several impediments: if incorrectly adjusted, its flame blackens cooking utensils, its smell impregnates food, the wick has to be constantly monitored and stoves quickly malfunction. Beyond everything else, one should also mention accidents, explosions and burn risks. The wealthiest households use propane LPG to prepare light meals, breakfast and supper when they are running short of time. In fact, propane serves as a second solution to charcoal use for economic reasons (to make LPG last longer). Wood also plays the same role as charcoal for time-consuming cooking, for the poorest households. LPG is easy to use: whether day or night, one just has to turn a switch. It reduces cooking time, does not stain cooking utensils or kitchen space. The temperature of stoves and burners can be controlled at will. However, various factors limit its use by the Haitian population. LPG’s first drawback is an economic one: it is not sold on a retail basis. Transporting LPG ENERGY CONSUMPTION 10 REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES cylinders weighing 25, 50 or 100 Pounds (lb) is rather difficult. Additionally, given the frequency of accidents caused by improper use, it generates distrust and fear among many persons. The other very important issue is the high cost of propane stoves. Small and Medium Enterprises and Services Various surveys carried out in the 90s indicated that, same as households, most SMEs use wood and charcoal, representing about 15 percent of domestic consumption. Those are mainly family enterprises, such as bakeries, laundries, dry cleaners, distilleries, guildives, mills, street restaurants, etc. SMEs generally lack the financial means to improve their energy equipment. The use of bagasse is constantly rising among distilleries; wood supply problems and cost motivate consumers to use it as a substitution fuel. The number of sugarcane transformation workshops throughout the country is an estimated 5,612. About 130 bagasse production mills and some 200 distilleries are found in the Leogane plain alone. According to industrial professionals met during the survey, currently more than 75 percent of Leogane distilleries only use bagasse. Such a transformation has begun to expand slowly throughout the country. Haiti’s bakery industry is expanding fast, as demographic growth generates a strong demand for bread, a basic food item. A study carried out by CARE (an international humanitarian NGO), Peter Young calculated that 1,300 bakeries operate throughout the country, with a consumption amounting to 156,000 to 208,000 tons of wood. The study revealed the very low profit-yielding capacity of such enterprises (3 to10 percent). Many large bakeries (such as those producing the “épi d’or” brand) possess imported ovens using LPG and/or electricity. It is important to mention the irreversibility of a bakery’s conversion, which hampers spontaneous conversions. As per data gathered in 2001, 170 laundries were operating throughout the country, with a total consumption of 23,000-26,000 tons of wood per year. Some of the larger ones use diesel burners. Unlike bakeries, the conversion of laundries does not imply deep modifications in the functioning system. The only requirement is to have a diesel burner to generate the temperature level needed by the boiler, in substitution of wood. The street restaurants – “manje kwit” – proliferate in Port-au-Prince town. An increasing number of people can no longer eat lunch at home and look for suitable alternatives. The referred survey interviewed several street restaurant owners, selling on an average 150 to 200 meals per week each. They are not equipped (as they would like to be) with 11 ameliorated large boilers because their consumption level is about five-seven charcoal bags per week. The few street restaurant owners who opted for kerosene or LPG are satisfied and declare having made appreciable savings. Energy Consumption and Costs Based on observations made by a nonstatistically representative group which served as a basis for one of the surveys, housewives consume on an average two to three marmites 4 of charcoal per day, at an average cost of 50 gourdes. One charcoal bag costs some 400 gourdes in Port-au-Prince (less in the province), and lasts almost two weeks. One kerosene gallon costs 100 gourdes, and may last two to three days. A 25-lb propane cylinder costs 425 to 450 gourdes and lasts 10 to 15 days. Table 3.1 gives a summary of units used and annual costs for each fuel-type. It also indicates the fuels’ costs per unit, consumption in energy indicators and annual costs per type of fuel (to prepare the same type of meal). The table includes paper briquettes, recently introduced in a Port-au-Prince neighborhood. Table 3.1: Characteristics of Fuels Unit INIT/14 Gdes/14 Gdes/kg kg or MJ/d MJ eff/d Gourdes/ days days or liter liter/d yr Charcoal kg 11 210 1.8 8.1 114.0 22.8 5 Briquettes marmite 2-3/d 14 days 700 18.4 2.7 81.4 22.8 18 Charcoal bag 1 in 14 days 400 10.5 2.7 81.4 22.8 10 Kerosene gallon 5 in 14 days 407 21.4 1.4 47.5 21.4 10 LPG cylinder 1 in 14 days 435 38.4 0.7 34.0 22.1 11 25 lb Source : Complementary investigation (ESMAP/BME 2005). All women interviewed during the survey consider that fuels are expensive. Over recent years, prices have increased substantially, and this rise is probably related with the general high cost of living, the rise in fuel prices and the State’s inaction. In terms of cost-effectiveness and fuels’ durability, kerosene comes up as the cheapest fuel. Pricewise, charcoal and propane are practically the same. 4 This is the quantity which the poorest households buy; and it is often sold in prepacked heaps or piles. Wealthier households buy charcoal in bags. ENERGY CONSUMPTION 12 REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES Charcoal purchased in marmites is the costliest energy. It is also used by the majority of households; this observation is valid for all countries, poor households pay a higher price for energy than rich households. If poor households were in a position to buy charcoal in bags instead of in marmite , they could reduce their energy expenditure by almost half. However, their daily income does not allow them to accumulate the required sum to buy a whole bag. In Figure 3.1, the lower curves indicate fuels costs, corrected in function of inflation. We may note (i) that the cost of cooking with charcoal in bags is the lowest; the cost of using charcoal in marmites is higher; and (ii) kerosene and LPG are slightly more expensive. It is normal that LPG and kerosene are slightly more expensive than charcoal, in view of the latter’s lesser efficiency and comfort. However, kerosene cooking was cheaper between 1995 and 2004. We further note that charcoal cooking cost has increased since the 80s (in constant 1980 terms), except during the recent past years, and that it rose even more than oil products. 80 gourdes/MJeff Electricity Sector Although it is important in terms of public investment and national petroleum consumption (about 20 percent per year), the electricity sector only represents 2.6 percent of the national Energy Costs (80 Gdes/Mjeff) Year 1980 1986 1990 1995 2000 2005 Sources: ESMAP and BME. Figure 3.1: Costs of Cooking Fuels (1980 gourdes) Marmite Charcoal Charcoal Bag Kerosene Gas 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 - 13 energy balance. In fact, it represents one of the main factors hampering economic and social development in Haiti, given the following elements: poor performance (over 50 percent of nontechnical losses are due to fraud, nonpayment and illegal connections), low coverage rate (less than 10 percent of households) 5 and low installed capacity (an average 30 Watts (W) per inhabitant, versus 346 W per inhabitant in the Caribbean region). Electricity does not provide solutions against deforestation; very few persons use electric power for cooking, and there is no indication that this could change soon. For this reason, the electricity sector is not incorporated in the strategy for household energy, which focuses on cooking fuels. Industrial Sector The industrial sector’s share in the country’s overall energy consumption is 15 to 20 percent. In 1989, it contributed 14.77 percent to the Gross Domestic Product (GDP); one must however note that the State subsidizes electric power, which mainly benefits the industry. Given the crucial role energy plays in the sector’s functioning, it is imperative to maintain and increase energy supply to prevent any disruption. The traditional industry consumes some 160,000 to 200,000 tons of firewood every year. 6 But use of wood generates problems, as it takes place without renewing the resource. Neither consumers nor relevant institutions have given a thought to the need to establish a program for rational firewood production, to help compensate for the large volumes collected and used each year. For this reason, firewood used by industry represents one of the causes of deforestation in Haiti (Moran et al ., 1989). Transportation Sector Several factors generate an ever-increasing energy demand (around 60 percent of the total volume of imported oil products) in the transportation sector, and must, therefore, be controlled. This demand not only emanates from the number of motorized vehicles, estimated to be over 100,000, all categories included. For a great part, the demand results from lack of control of motorized vehicles, roads’ poor conditions, huge traffic jams in towns, as well as inefficient traffic control in urban centers. 5 The average power consumption in Haiti is 32.70 Kilo Watt (s) Per Hour (kWh)/inhabitant, which is clearly lower than the Caribbean region’s average of 1,180 kWh/inhabitant (SIEE/OLADE, 1994). 6 In 1985, a total of 473 guildives and mill-guildives were counted, principally in the south-west peninsula. Some of them use bagasse as fuel, the more modern ones use diesel; but most of them use thick wood. Such is the case with 31 essential oil workshops (vétiver, lime, bois chandelle, etc.), where more than half use firewood for extracting oils (ESMAP, 1991). ENERGY CONSUMPTION Haiti’s estimated household energy consumption is: biomass 79 percent, oil 17.6 percent, electricity 2.6 percent and LPG 0.6 percent (Figure 4.1). In the capital, Port-au-Prince, the charcoal market’s value is between US$110 and US$150 million; the figures for kerosene and LPG at national level are US$120 million and US$15 million respectively. Some 30 percent of the charcoal market’s value are redistributed in the rural areas, and, therefore, represent a nonnegligible source of income. Firewood In order to cover woodfuel needs, Haitian peasants fell some 30 million trees each year to satisfy a consumption amounting to about 3.4 to 3.7 tons of firewood (750-1,600 Thousand Tons of Oil Equivalent[ktoe], in 1995). In 2003, this consumption probably passed the level of 4 million tons of wood, 33 percent of which are transformed into charcoal. Wood is 4. Energy Sources 15 Figure 4.1: National Household Energy Consumption (%) 2003 Source: BME. Kerosene, Diesel 3% LPG 2% Electricity 1% Fuel Oil 0% Transformation Loss 18% Bagasse 4% Charcoal 12% Firewood 60% Gasoline 0% Firewood Charcoal Transformation Loss Bagasse LPG Gasoline Kerosene, Diesel Electricity Fuel Oil 16 REPUBLIC OF HAITI: STRATEGY TO ALLEVIATE THE PRESSURE OF FUEL DEMAND ON NATIONAL WOODFUEL RESOURCES consumed in rural areas, where a large part is gathered by the households as dead wood, small wood, twigs, etc. 7 In order to satisfy the urban demand for firewood, the population generally uses green wood, which implies the cutting of live trees; a commercial chain handles the distribution of firewood. Although wood consumption is higher than charcoal consumption, the latter is considered to have more negative impact due to its economic importance and its effect on forest resources, as it is produced from live wood harvested for this purpose. Charcoal Consumption Level It should be noted that the observations made on household consumption per unit date back to 1990 and 1998, at which time the BME carried out several surveys. To verify such trends, the Ministry of Environment and ESMAP (2005) jointly conducted complementary surveys which show that consumption not only did not slow down but probably increased. In May 2005, the Environment Ministry carried out a flux survey during one week in Port-au-Prince. The methodology was simple, and consisted of posting a certain number of investigators over a seven-day period in some key spots 8 around the town to assess the arrivals: number of bags, transportation means used, source of charcoal. Additionally, observations in three strategic locations monitored the charcoal traffic during night hours. 9 It should also be noted that the observed charcoal flows only concern Port-au-Prince and that the brief observation period permitted by the logistical and financial constraints is far from being sufficient to allow making projections on one-month or one-year scale. The figures put forward represent orders of magnitude which ought to be treated with prudence. The total volume of deliveries in Port-au-Prince during that week was 5,300 tons of charcoal, of which some 20 percent entered by night. More than 85 percent were 45-50 kg “large bags” and the rest were 35 kg bags and smaller bags of less than 20 kg. A summary of the results is shown in Table 4.1. 7 Energy balance in 2003. 8 Carrefour Shada (northern entrance), Rond Point de la Croix des Bouquets Police Station for charcoal coming from the Plateau Central and from the border zone. Gressier (southern entrance), Cité Soleil wharf, Jérémy wharf, La Rochelle wharf, Mariani wharf, the Croix des Bouquets market. 9 Carrefour Shada, Croix des Bouquets and Gressier. 17 Table 4.1: Quantities of Charcoal Observed in Port-au-Prince during One Week Bag (Size) Large Medium Small t/Week Night-time Shada 13,890 200 Crx Bouquets