A value chain analysis of the solar water heater industry in the Western Cape : investigating opportunities for local economic development, poverty alleviation and energy conservation

[摘要] ENGLISH ABSTRACT: Low-income households in the Western Cape primarily use small electrical kettles to heatwater for bathing and cleaning. This energy usage pattern is problematic in that;• It is based on unsustainable energy sources that cause environmental degradation,• Electricity is becoming more expensive in South Africa which strains the limitedincome of poorer households and• The national utility, Eskom, is struggling to meet the demand for electricity.If energy-intensive development paths are followed these problems will escalate further.Solar water heating offers a synergic (Max-Neef 1991), if partial, solution for the situation.By decoupling hot water usage from increased electricity usage, solar water heaters (SWHs)can reduce electricity demand and thus environmental degradation. The large quantities ofhot water (relative to electrical kettles) that they provide also fulfil a developmental serviceby improving quality of life and personal health. The manufacturing and installation of solarwater heaters could serve as a further catalyst for development by providing opportunities foreconomic development.Unfortunately the high capital cost of SWHs remains a barrier to the rollout of the technologyin lower income groups. The objective of this thesis is to contribute to the elimination of thisbarrier through providing insight into; the hot water requirements of low-income households,the potential electricity and carbon emission savings that solar water heaters present, and thecost drivers and job creation potential of the solar water heating value chain. The researchhypothesis is that: Solar water heaters (SWHs) are a potential synergic satisfier to achievesustainable development in low income communities by providing an improved energyservice, reducing environmental degradation and creating employment opportunities. Thehigh price of the technology makes intervention in the form of subsidies and/or regulationfrom the appropriate level(s) of government critical for the realisation of this potential.The methodology used to test the hypothesis is quantitative and qualitative in nature with dataobtained through a survey of 90 low-income households in Stellenbosch, a behavioural studyof two households wherein solar water heaters were installed and a value chain analysis ofthe SWH industry in the Western Cape.The key findings of the research include that, SWHs offer a real improvement in quality oflife for low-income households and that they reduce electricity consumption relative to alevel of development. The key barrier to cost reductions in the solar water heating industry isfound to be the small size of the industry which leads to an inability to source material,especially copper, at competitive prices. It is proposed that government sponsored rolloutprograms could alleviate this barrier, leading to the development of a robust industry. Jobcreation potential is found to be relatively small but a suggested rollout programme for SWHsin the Western Cape shows that the benefits of the technology can be realised and severalthousand jobs created in a fiscally prudent manner.The thesis is focuses on households from LSM categories 5-8 in the Western Cape Province.Stellenbosch Municipality is used as a specific case study area.

[发布机构] Stellenbosch University