Circular Energy








We arrive at the homonymous column of this space which, since its beginning, has proposed the idea of returning to the future in matters of energy; that is, concentrating public, private and social efforts on analyzing the challenges of the energy sector of the future and potential solutions. We have talked about energy revolutions and what the future may bring us ahead, as well as climate changes and the garbage, and the waste associated with the energy sector.

Since the seventies, the need to implement a sustainable development model has been raised, one that takes into account the use of resources and their replacement rates, in such a way that, in the future, ecosystems can provide the natural resources necessary to give a growing population the means for its continued development.

In 2015, as part of a process to expand the Millennium Goals, the countries that make up the United Nations Organization developed a series of goals related to this topic; it represents the most ambitious expression that the international community has presented, called the Sustainable Development Goals, which is constituted as part of the agenda of the international community of 2030.

In this sense, one current that proposes an alternative solution for sustainable development is that of “circular economy.” It proposes that the international economic system can reduce waste and the intensive use of resources through the use, reuse, adaptation, repair, recycling and responsible final disposal of goods and products that form part of the supply structure that sustains the world economic base.

Given that world energy development is associated with effects on the environment and, in our times —particularly with climate change caused by greenhouse gas emissions into the atmosphere— it is key to understand how a concept such as “circular energy” can be articulated, incorporating some basic elements of the current into the energy sector.

In this way, even though the future of the energy sector is based on the development of renewable sources —such as solar and wind supported by traditional storage and electric cars, hydrogen for generation, storage or mobility, among other options— this technology needs resources and generates waste that requires special treatment.

Considering this, the challenge to overcome is how to reuse, adapt, repair, recycle or definitively and safely dispose of solar panels, traditional batteries and other clean technologies in such a way that they do not become —just as happened with cellphones and computers— digital garbage.

This is of vital importance, because one of the points established by the 2030 agenda is to guarantee universal access to affordable, reliable and modern energy services. This means that international efforts are aimed at ensuring that the inhabitants of the planet have energy; but also, that this comes from renewable sources and that they are affordable for everyone. This implies, consequently, that it is fundamental to establish mechanisms that lead to a better understanding of what is required to integrate the circular economy model into the energy sector.

This is a debate, which is still in its initial stage, and will be fundamental for the continuous development of the world and to create a green and sustainable energy sector. Otherwise, even with renewable energy sources, we could generate important impacts on the environment.

This article was originally published by Business Insider México.
Date: September 9, 2020
Original Link: https://businessinsider.mx/energia-circular-opinion-paul-sanchez-energia-futuro/ [offline]
Archived Link: https://web.archive.org/web/20240722041425/https://businessinsider.mx/energia-circular-opinion-paul-sanchez-energia-futuro/ [Archived]

Energy Poverty in Mexico: Where Do We Begin?

In recent years, the strong correlation between energy consumption and improvements in the quality of life of households and society as a whole has become increasingly evident. Today, children require computers, tablets, and internet access in order to receive an education that is both adequate and consistent with the standards of the modern world.

In this context, it is becoming increasingly common to hear about the importance of energy and the hardships faced by households and communities when they lack access to it, or when, despite having access, it is not affordable and optimal consumption creates additional challenges. So, where do we begin? Perhaps by first understanding what poverty is, how it is measured in Mexico, and what insights emerge when we combine these two elements.

Mexico was a pioneer in introducing the concept of multidimensional poverty in Latin America through the creation of the National Council for the Evaluation of Social Development Policy (CONEVAL) in 2006 and the implementation of the National Household Income and Expenditure Survey in 2008. Prior to that, poverty in Mexico was reported from a one-dimensional perspective that considered only the income of Mexican households and families.

At that time, three poverty lines were established to classify poverty nationwide: food poverty, capability poverty, and asset poverty. The first assessed whether income was sufficient to provide adequate nutrition; the second, whether it was sufficient to cover food needs as well as health and education requirements; and the third, whether it could also cover expenses related to clothing, housing, and transportation. When income was insufficient, households were considered to experience food, capability, or asset deprivation.

However, beginning in 2008, poverty in Mexico started to be measured using a multidimensional approach that considers the place where people live, their income level, and the availability of infrastructure, services, and basic rights to which a given family has access. Regarding income, CONEVAL established two poverty thresholds: moderate poverty and extreme poverty.

For extreme poverty, the minimum monthly income thresholds for June 2020 were established at MXN 1,640.00 and MXN 1,170.92 for urban and rural localities, respectively. Income below these levels is considered extreme income poverty. For the same period, the minimum monthly income thresholds required to avoid moderate income poverty were established at MXN 3,202.64 and MXN 2,086.57 for urban and rural localities, respectively.

Nevertheless, multidimensional poverty, as noted above, goes beyond income and includes the enjoyment of six basic rights or services: education, health, social security, food, housing, and access to basic services. Access to basic services includes water, sanitation, electricity, and cooking fuels within the household.

Therefore, in Mexico, a household is not considered poor if and only if its income is above the moderate poverty line and it experiences no deprivation in any of the six social dimensions mentioned above. If it has at least one deprivation but its income remains above the poverty line, it is considered a non-poor household with social deprivations.

Households experiencing moderate multidimensional poverty are those whose income falls below the moderate poverty line and who experience at least one social deprivation, while households in extreme multidimensional poverty are those whose income falls below the extreme poverty line and who experience at least three social deprivations.

When considering poverty and its relationship with energy, several related concepts emerge: energy poverty, energy access, energy marginalization, and energy vulnerability. Each of these concepts is related to the measurement of multidimensional poverty in Mexico.

For example, a family whose income exceeds the moderate poverty line may decide to move to a rural area located far from the electrical grid. As a result, it becomes a household experiencing deprivation because it lacks access to energy. It has the ability to pay, but it does not have access to energy. Consequently, lack of access to energy does not necessarily imply energy poverty.

In contrast, a household may have access to energy, but the cost of electricity, gas, and gasoline consumption may compromise other essential needs such as food, health care, education, or clothing. As a result, the household may choose to consume less energy than is optimal. In such cases, we may be witnessing energy vulnerability in terms of household economics or thermal comfort.

On the other hand, what happens when a household not only lacks sufficient income to support optimal electricity consumption but also lacks access to energy altogether? One could argue that such a situation goes beyond energy vulnerability and may be considered energy marginalization, as households in these circumstances are often forced to migrate from their communities of origin.

Perhaps we could begin by understanding energy poverty as a condition in which there is a lack, deficiency, or insufficiency of economic, technical, or social conditions necessary to access or maintain an optimal level of energy consumption that satisfies the essential needs for a household’s subsistence, development, and comfort.

Surely, especially if they are experts in the field, readers may find this definition insufficient for a topic of such importance to modern societies. Nevertheless, I believe it serves as a useful starting point for reflection and for encouraging debate on how to understand and assess energy poverty in Mexico and around the world. Perhaps in the future we will have the opportunity to explore this issue in greater depth here. For now, thank you for reading and sharing.

This article was originally published in Pensamiento Libre Magazine. ISSN 2007-5685.
Date: August 24, 2020
Original Link: https://www.revistapensamientolibre.com/single-post/2020/08/24/pobreza-energ%C3%A9tica-por-d%C3%B3nde-empezar [offline]
Archived Link: https://web.archive.org/web/20210613144455/https://www.revistapensamientolibre.com/single-post/2020/08/24/pobreza-energ%C3%A9tica-por-d%C3%B3nde-empezar [Archived]

Democratization: The Fourth D of the Energy Future






There can be no democracy without citizenship every day

– Ralph Nader

In recent weeks I have addressed three trends of the energy future: decarbonization, decentralization and digitalization. Together these three trends create and reinforce a fourth trend: the democratization of energy, which is the fourth D of the energy future.

Democratization, for the purposes of this article, is not related to the concept of political science that refers to the transition from authoritarian political regimes to democratic ones, but it does take the most important component of the concept of democracy: the citizen who is the center of the democratic process.

A related concept would be the democratization of knowledge, which refers to the process of disseminating knowledge among ordinary people, thereby breaking the concentrations of knowledge enjoyed by elites. Libraries and access to the internet are sources that allow knowledge to be democratized.

In the same way, democratizing energy implies the process of breaking the barriers that prevent universal access to energy and the adaptation of consumption centers into production centers. This implies several things, but the most important is to develop regulation that places the consumer, the user and the citizen at the center.

This means that they are freely allowed to choose their energy provider and their source of generation; that they are allowed to install solar panels on their roofs without the need for complex regulations that benefit horizontally and vertically integrated production chains; and above all it implies that all citizens have access to energy, understanding by this not only electrification but having the capacity to pay or having a protected tariff according to their basic needs.

Just as in political democracy the source of the legitimacy of the ruler is deposited by sovereign citizens as a whole, the energy sector starts from the same logic, from the existence of social demands that are important for the development of a modern energy future for new generations.

This includes decarbonization reflected in a responsible consumption of energy that must consider the least possible impact on the environment. It also includes the breaking of state monopolies and State control in matters of provision of energy services and redesigning its role as regulator and protector of citizens, that is, a process of decentralization.

It also includes taking advantage of the resources that digitalization places within reach of modern societies for the consolidation of a sector that takes advantage of the interconnectivity of consumption centers with production centers and breaks with the limitations of the integration of renewable energies into energy distribution and transmission networks, which must at all times be intelligent.

And, of course, it implies paying attention to the most unprotected, marginalized and vulnerable, to those citizens who do not have access to energy or who have access to energy of lower quality — such as firewood or other solid fuels — or who have access to polluting energy or who, having an electric connection, for example, cannot pay their electricity bills.

The gap in access to energy is the fundamental source of energy poverty and inequality and that has an impact on the quality of life of citizens. In an energy democracy that must matter. The democratization of energy is therefore about bringing more energy at lower prices at lower environmental and social costs and that goes hand in hand with the digitalization, decentralization and decarbonization of the energy sector of the future.

This article was originally published by Business Insider México.
Date: August 5, 2020
Original Link: https://businessinsider.mx/democratizacion-energia-electrica-futuro-energetico-energia-circular-opinion-paul-sanchez/ [offline]
Archived Link: https://web.archive.org/web/20210306234818/https://businessinsider.mx/democratizacion-energia-electrica-futuro-energetico-energia-circular-opinion-paul-sanchez/ [Archived]