The lack of access to electricity for underserved communities and vicious circle
By Aleena
Not having access to electricity causes the underserved communities to get stuck in a vicious circle.
Ever since this course kicked in a few weeks ago, I have been immersed in everything South Africa. The consulting project I was assigned to is around providing renewable energy in underserved communities. This hits close to home for me. Growing up in Pakistan, electricity shortage is a common problem faced by both the rich and the poor. If you are rich enough, you could buy a generator. If you are properly rich, you could buy a couple of generators. The poor are unable to afford these back up plans. However, the rich and the poor are both faced with the same problem: dealing with a necessity that, in principal, the country’s government should be able to provide. South Africa faces a very similar issue. This necessity is almost viewed as a luxury reserved for urban communities. However, governments are facing their own set of challenges while dealing with providing traditional energy, primarily generated through fossil fuels. For one, fossil fuels are fast running out. Secondly, and some might argue more importantly, they are causing a havoc to the climate.
How does the government tackle this growing issue? Countries like South Africa have an advantage due to the amount of sun it receives all year round. Putting up solar panels on residential rooftops and businesses should do the trick, right? Turns out, it is a lot more complicated than that. For one, solar power is constantly evolving. Solar technology that was once considered a fool proof way to generate optimal energy from the sun has now been surpassed by emerging technology that can provide better operational efficiency. There is debate on whether to use photovoltaic panels or concentrated solar panels. These are big capital investments. This is why governments need to be fully committed to this shift. With the proper regulation and appropriate tariffs, governments can lower barriers to entry for businesses.
This electricity disparity has a massive impact on the social stratification of the country. During my research, I found a strong correlation between GDP and access to electricity. Predictably, these areas were also low on education. Not having access to electricity causes the underserved communities to get stuck in a vicious circle. The consulting project I was assigned to with my team is around how we can solve this complex issue. Since this is my first consulting project, I have already learned a lot about this field. Consulting itself has been interesting; managing client expectations, working on developing a relationship with the client’s point person, and working with a client on a day/night time difference. I look forward to learning more about the socio-economic concerns in the country and how businesses can help mitigate them through strategic involvements.