CONTRIBUTION OF RENEWABLE RESOURCES AND ENERGY CONSERVATION AS ALTERNATIVES TO IMPORTED OIL IN DEVELOPING COUNTRIES

This demand is expected to grow from the current eight million barrels per day (MBD) to 20-25 MBD in the year 2000. This paper addresses the role of renewable energy sources and conservation in meeting the future energy demands of developing countries. It appears possible that renewable energy sources (biomass, solar, wind, small-scale hydro, and geothermal) could reduce that demand from 8-l5%. Of these sources, it is solar energy which appears to have the greatest potential in reducing oil demand. Possible applications include solar/thermal for water heating in industry and in commerical and residential buildings; solar/electric (central), involving large land areas of collectors, a tall receiving tower, special boilers, and turbogenerators; and solar/electric (decentralized), using photovoltaics for irrigation, village street lighting, public buildings, and residences. It is estimated that l0-20% of the LDC oil demand could be reduced through conservation. A lack of trained personnel as well as institutions capable of developing and maintaining small-scale renewable energy systems are the principal obstacles to the utilization of these new energy sources. In addition, LDC governmental and private sector policymakers have maintained a cautious attitude regarding renewable energy sources -- primarily due to their perception of the industrialized nations urging such sources upon LDCs without according them a high priority in their own nations. Another constraint to the use of renewable energy sources is the fact that the major lending and research institutions assisting developing countries are oriented to large-scale, capital-intensive technologies. Authors conclude that the nontechnical constraints to renewable and energy conservation strategies are the most formidable. They recommend that the U.S. and other industrialized nations step up their technical, economic, and institutional assistance in the development of these energy sources.