Policies should focus on making new energy technology available sup porting

Policies should focus on making new energy technology

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tion of new sources energy. Policies should focus on making new energy technology available, sup- porting market formation via microcredit financ-ing and thus creating socially inclusive learning spaces to facilitate the shift in energy technology. At the local level, securing energy access involves building new energy LICS in rural areas and re-placing the existing urban ones. The challenges for energy access depend on the specific characteristics of energy systems and their context, but there are trade-offs related to the de-sign of the energy system and access. A contentious issue concerns off-grid versus on- grid energy ac-cess, the former often referring to small-scale, de-centralized energy production, and the latter to a large-scale centralized production, typically with a costly transmission infrastructure. Where the main goal is to satisfy the low-level energy needs of poor households, access to off -grid solutions, even if unstable, may suffice. As an example, see Box 8 on solar energy hubs in Kasese, Uganda. However, such solutions may not work in all settings. If pow-er is needed for energy- intensive natural resource-based industries, the stability and backup power of the grid is probably necessary. The question of energy access for low-carbon de- velopment strategies thus involves a multitemporal perspective. Off-grid energy access is a reasonable short-term goal while on-grid development could be a longer-term goal, as energy consumption will grow with the economic development in the South. On the other hand, if energy storage technologies LOW-CARBON INNOVATION AND DEVELOPMENT 63
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improve significantly, off-grid low-carbon develop- ment may as well become feasible over time. In ad- dition to local energy transformation, innovation in storage technology should be a political prior-ity. Despite the rhetoric about the need to increase access to energy – for a number of developing countries it would make most sense via decen- tralized options – investment and activity are still skewed toward centralized options (Mallett, 2013). 3.2 Demand side The demand side of low-carbon transformation of energy systems refers to efficiency in energy use, the importance of users, social legitimacy for build- ing LICS, and the importance of market creation for the dissemination of low-carbon technology. 3.2.1 Energy use efficiency Increases are expected in the world’s demand for energy, in particular for electricity as transport and heating become increasingly electrified (in the North). Despite expected energy efficiency efforts, demand is thus expected to rise from 3250 TWh/ yr to 4900 TWh/yr in 2050 (for EU27 and Nor-way and Switzerland) (EC, 2010). Globally, energy efficiency has been improving, particularly in the South, although the 2000s have seen an abatement in this development, partly due to increased eco-nomic activity in the South (RE 21, 2013). Still, a large untapped potential for energy efficiency remains, especially in emerging and developing countries (UNIDO, 2011). Box 9 outlines some of the key barriers for industrial energy efficiency in developing countries and sets options for their adoption.
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