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p. 26 of 30 BACK | NEXT Introduction Regional Energy Context Energy Policy Issues Structural Reform Energy Efficiency Energy Pricing Energy and Environment Rural Energy Development Introduction Rural Energy Systems Traditional Energy Sources Commercial Energy Options Renewable Energy Systems Regional Cooperation and Energy Development Conclusions and Recommendations

Bank Policy Initiatives for the Energy Sector : Energy Policy Issues : Rural Energy Development

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Traditional Energy Sources

67. Energy for cooking in rural areas, which accounts for about 70-80 per cent of total energy use, is largely met from traditional energy sources ---mainly in the form of biofuels which have direct impact on forests. A critical problem facing the Bank’s DMCs is that of maintaining fuelwood supplies without causing serious environmental damage since rural people, as well as the urban poor in the DMCs, will continue to use fuelwood as their main source of energy in the absence of affordable supplies of commercial energy forms. In accordance with its policy on Forestry, the Bank will support sustainable fuelwood production by local communities and farmers by promoting incentives such as landuse policy reforms, security of property rights, restricted access to previously “free” resources, promotion of alternate energy sources, and improved benefit sharing arrangements. The Bank will also support direct fuelwood plantaion projects including, whenever possible, native tree species in already degraded lands preferably in locations accessible by the poor, and efficient harvesting and delivery systems. However, indoor air pollution resulting from inefficient cooking methods and biofuels is a major health hazard, especially for women and children. The use of improved biofuel stoves or other alternative cooking systems would reduce deforestation and improve the quality of life by reducing the time spent in gathering fuels and cooking.

68. Developing an optimum mix of energy sources for each location (based on available natural resource endowment pattern and their efficient utilization) is the key to augmenting rural energy supply from traditional sources coupled with the use of renewable energy technologies. Therefore, rural energy policy should be aimed at providing the basic human energy needs by choosing an optimum mix of the energy resources at a minimum cost to economy. Conserving and managing forest and nonforest, woodfuel resources, adopting equitable pricing policies and ensuring sustainable development will be the key objectives. Bank assistance to rural energy planning would focus on the (i) role of the fuelwood in energy planning for rural areas; (ii) augmentation of fuelwood supplies from commercial fuelwood plantations, natural forests (excluding primary and protection forests) and social forestry projects; and (iii) fuelwood use efficiency aspects such as efficient cooking stoves. It will also pay special attention to the use of biomass for heat and motive power, small-scale hydropower, and solar and wind based energy forms (see paras. 74 through 81).

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