Proceedings of

Village Power ’98

Scaling Up Electricity Access

for Sustainable Rural Development

Volume I

Convened by the National Renewable Energy Laboratory

In collaboration with the World Bank

World Bank Headquarters, Washington, D.C.

October 6-8, 1998
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Village Power ’98Village Power ’98 Village Power ’98

Scaling Up Electricity Access

for Sustainable Rural Development for Sustainable Rural Development

Convened by the National Renewable Energy Laboratory

In collaboration with the World Bank

World Bank Headquarters, Washington, D.C.

October 6-8, 1998

Village Power ’98 Proceedings

Organizing/Editing Team

Julie Cardinal, NREL

Larry Flowers, NREL

Judy Siegel, World Bank

Roger Taylor, NREL

Jerome Weingart, Weingart & Associates

Village Power ’98 Proceedings were produced by the

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Printed March 1999
Village Power ‘98

Tuesday, October 6, 1998 Page

09:00-09:30 Opening Session.........................................................................................................................................................1

•Caio Koch-Weser, Managing Director,World Bank

•Richard Truly, Director, National Renewable Energy Laboratory ....................................................................................................3

•Allan Hoffman, U.S. Department of Energy .....................................................................................................................................5

09:30-10:00 Keynote Addresses.....................................................................................................................................................7

•Tim Wirth, Director, UN Foundation

•Ambassador Leonard Spearman, Director, Renewable Energy for African Development...............................................................9

10:15-11:15 Defining the Problem: Scaling-up Electricity Access for Sustainable Rural Development

- Chair, Callisto Madavo, Vice President for Africa,World Bank.....................................................................................................15

•The Asia Challenge - Mieko Nishimizu, Vice President, South Asia, World Bank .........................................................................17

•Latin America and Caribbean Needs for Rural Energy

 – Ambassador Christopher Thomas, Assistant Secretary General, Organization of American States ..........................................21

•The Challenge and Needs in Africa - Mark Tomlinson,World Bank

11:15-12:00 Meeting the Challenge to Rural Access - Chair, James Bond,World Bank ............................................................29

•Private Sector Strategy to Increase Rural Electricity Access – Herre Hoekstra, Shell Renewables..............................................31

•UN Sustainable Energy Initiative - Susan McDade,Energy and Atmosphere Programme, SEED and UNDP ..............................35

•Renewable Energy Finance: Matching Resources and Needs- Michael Allen,E&CO...................................................................41

•Technology Options for Meeting Rural Electricity Needs - Larry Flowers, NREL ..........................................................................55

12:00-12:30 1998 Village Power Road Warrior Award................................................................................................................67

•Village Power Road Warrior Address – Bud Annan.......................................................................................................................69

14:00-16:00 Organizing for Scaling-up Electricity Access; Models for Sustainable Energy Delivery

- Chair, Karl Jechoutek,World Bank ................................................................................................................................................75

•Key Issues in Scaling-up Rural Electricity Access - Arun Sanghvi,World Bank.............................................................................77

•Scaling-up Rural Photovoltaic Enterprises in Emerging Market Economies: The Case of China

- Noureddine Berrah,World Bank

•Mexico: Achieving Universal Coverage - Carlos Gonzáles, CFE, Mexico

•Brazil Prodeem Program – Eugenio Mancini, National Department of Energy Development (DNDE), Brazil

•South Africa ESKOM Renewable Energy Experience - Thulani Gcbashe, ESKOM......................................................................87

•Solar Electric Energy Delivery - A Business Model- Richard Hansen, SOLUZ, Inc.....................................................................101

16:30-18:00 Panel Discussion: Roles and Consequences of Bilateral Donor Programs

- Chair, Matthew Mendis, AED ......................................................................................................................................................115

•USA - Jeff Seabright, USAID .......................................................................................................................................................117

•Netherlands - Paul Hassing, DGIS...............................................................................................................................................125

•International Energy Agency - Bernard McNelis, IT Power..........................................................................................................131

•United Kingdom – Clive Caffall, DFID..........................................................................................................................................139

18:00-20:00 Poster Session and Reception in the Atrium of the World Bank

Wednesday, October 7, 1998

09:00-11:00 Promoting Productive Uses and Small Businesses for Rural Development

- Chair, Khalid Siraj,World Bank....................................................................................................................................................155

•Promoting Productive Uses through Rural Enterprise Development

- Jim Finucane, Indonesia SHS Project Support Group ................................................................................................................157

•Energy’s Role in Rural Income Generation: The Grameen Strategy

 - Dipal Barua,Grameen Bank .......................................................................................................................................................165

•Productive Uses of Electricity: Country Experiences - David Kittelson, NRECA .........................................................................187

•Small Scale Village Electrification; an NGO Perspective

- Donella Bryce, Appropriate Technologies for Community and Environment ............................................................................. 201

•Capacity Building for Small Scale Rural Development - John Kadyszewski, Winrock.................................................................209

•Gender Poverty and Rural Electrification – Elizabeth Cecelski, Consultant ................................................................................229

iii
Village Power ‘98

Wednesday, October 7, 1998 (Continued) Page

11:30-13:00 Panel Discussion: Role of Electric Utilities in Rural Electrification

- Chair, Allan Hoffman, U.S. Department of Energy......................................................................................................................249

•Good Practices in Grid-Based Rural Electrification - Doug Barnes,World Bank..........................................................................251

•Decentralized Rural Electrification - Wolfgang Mostert, Consultant ............................................................................................259

•Utility Challenge for Distributed Generation - Carl Weinberg,Consultant.....................................................................................275

•Utility Response:.

- Edison Technology Solutions - Jim Reilly ...................................................................................................................................285

- EJSEDSA in Argentina - Daniel Angel Sandoval

- South Africa ESKOM - Thulani Gcbashe

- Arizona Public Service (APS) - Peter Johnston ..........................................................................................................................295

- NRECA - Pete Smith

14:00-16:00 Power Supply Options for Decentralized Rural Electrification

 - Chair, Judy Siegel,World Bank ..................................................................................................................................................299

•PV Applications for Sustainable Rural Development - Peter McKenzie

•Decentralized Rural Electrification in Zimbabwe - Alex Makomva, ZESA....................................................................................301

•Lessons Learned in Battery Charging Stations - Stephen Graham, Consultant..........................................................................315

•Small Wind for Village Power - Michael Bergey, Bergey Windpower ..........................................................................................325

•Biomass Gasification for Village Power - Ralph Overend, NREL ...............................................................................................331

•Hybrid Power Systems in the Australian Outback - Stephen Phillips, AES Australia ..................................................................347

•Diesel Retrofits: The Alaskan Experience - Richard Emerman, Alaskan State Energy Office ....................................................359

•Micro-hydro Mini-Grids - Andrew Barnett, Intermediate Technology Development Group ..........................................................365

16:30-18:00 Rural Energy Service Models - Chair, Jerry Weingart, Weingart & Associates .....................................................383

•Concessions: The Argentina Experience - Aldo Fabris, Ministry of Energy, Argentina ...............................................................385

•Sunlight Power International Approaches in Morocco

 - Jeff Serfass and Dr. Abdelhanine Benallou, SunLight Power Morocco .....................................................................................393

•Battery Charging in Brazil - Michael Davis, Golden Genesis

•Transition from NGO to Profit-making Enterprise - Priyantha Wijesooriya, Sri Lanka

•Challenges for Viable RESCOs - Art Lilley, Community Power Corporation ...............................................................................403

•Empowering Rural Villages - Charlie Gay, ASE Americas...........................................................................................................413

•Solar Lighting for the Church of Africa - Bishop Alden Hathaway, Jr...........................................................................................419

Thursday, October 8, 1998

09:00-11:00 Financing Scale-up of Rural Electricity Access and Expanding Renewable Energy Markets

- Chair, Paul Hassing, DGIS, The Netherlands .............................................................................................................................431

•Effective Intermediation: Experience in Asia RE Projects - Jim Finucane, Indonesia SHS Support Group.................................433

•Structuring and Justifying Financial Incentives - Subodh Mathur, Consultant .............................................................................445

•Inter-American Development Bank Experience in Renewable Energy Financing for Rural Development

- Jaime Millan - Inter-American Development Bank ......................................................................................................................455

•Financing for Private Sector Renewable Energy Projects - International Finance Corporation (IFC)..........................................463

11:30-12:00 Closing Statements - Chair, Alistair McKechnie,World Bank..................................................................................467

•NREL – Roger Taylor...................................................................................................................................................................469

•World Bank - James Bond ...........................................................................................................................................................475

v
Village Power ‘98

Appendix A Page

Poster Session ............................................................................................................................................................................479

NREL Handouts

Project Briefs .................................................................................................................................................................................513

Bibliography...................................................................................................................................................................................559

Renewables for Sustainable Village Power by Larry Flowers .......................................................................................................563

Lessons Learned from the NREL Village Power Program by Roger Taylor..................................................................................571

Village Power ’98 Attendees.......................................................................................................................................................577

Photographs ................................................................................................................................................................................631

vii
Village Power ’98

Tuesday, October 6, 1998

09:00-09:30 Opening Session

•Caio Koch-Weser, Managing Director,World Bank

•Richard Truly, Director, National Renewable Energy Laboratory

•Allan Hoffman, U.S. Department of Energy
1

Brief Summary of Opening Comments at Village Power 98

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Richard Truly

Background

This is the fifth Village Power workshop sponsored by NREL. We have held these meetings

every year since 1993, to focus, challenge, and provide a forum for interaction among

practitioners working in the field of using renewable energy technologies as an economically

viable pathway to electrification of rural populations throughout the world.

Starting with a small group of 30 colleagues in 1993, this “workshop” has doubled in size every

year. When the NREL staff was planning for this meeting, they were hoping for something

around 400 participants. We are now looking at over 500, and we apologize for the somewhat

cramped accommodations.

This overwhelming response, however, shows that the use of renewable energy to solve some of

the world’s serious problems is coming of age. This meeting, this “conference” (it’s clearly no

longer a workshop) marks a transition.

A transition from the viewpoint that

renewables are, and forever will be a technology of the future;

to the reality that renewables have come of age,

We have technologies available today, at today’s prices, that can make a substantive contribution

to the pressing needs of environmentally sustainable development in the world.

Challenges

This reality is not without its challenges, of course:

Our key challenges now are:

How to grow this emerging technical and financial opportunity into a business reality that

is large enough to matter – an unprecedented scale of implementation that can have

serious energy significance on the world’s energy future.

And how to do this quickly enough that it can begin to contribute to global environmental

stabilization in a timeframe that matters.
2

Meeting these challenges and being effective supporters of renewable energy development and

scale up, at a time of fiscal conservatism in the U.S. renewable energy sponsorship; and at a time

of global economic slowdown in many of the countries with the biggest need for renewable

energy deployment today – is itself a challenge.

But the community of dedicated practitioners is clearly growing. All you have to do is look

around the room. A few years ago, everybody coming to the Village Power workshops knew a

large percentage of their participating colleagues. I suspect that even the most experienced of

you don’t know more than 30 percent of the people in this room. This is good news! The

community is growing, each of you with your own support, participating from your own unique

perspective. Strength is in numbers. Strength is in diversity. You now have “critical mass” in

both of these.

This Village Power ’98 Conference, with it’s subtitle: “Scaling up Electricity Access for

Sustainable Rural Development” is clearly a timely event.

Have a great Conference, meet some new friends, and make your own mark on moving

renewable energy technologies ahead in the global marketplace.
1

Brief Summary of Opening Comments at Village Power 98

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Allan R. Hoffman

- It is a pleasure to welcome you on behalf of Secretary Richardson, Assistant Secretary Reicher

and the U.S. Department of Energy

- It is good to see so many people in the audience - more than 500, compared to the 33 who

attended the first Village Power conference in 1993

- The Carter Administration took the first serious look at Federal policy for renewables in 1978 by

carrying out the 30-agency Domestic Policy Review of Solar Energy

- The past two decades have seen considerable progress in renewables development, and today

renewables is becoming a big and growing business

- The World Bank, through its Solar Initiative and subsequent actions has a unique opportunity to

advance worldwide use of renewable energy and make a real difference in people s lives

- Energy is key to rural development

- Use of renewables is key to reducing local environmental impacts of energy use in rural areas,

particularly impacts on women and children in developing nations who often carry most of the

burdens associated with gathering fuel and using energy

- Use of renewables is also key to addressing global climate change issues arising from energy use

- While today s energy system is largely dependent on fossil fuels, this situation cannot be

projected into the long-term future

- We are in the early stages of an inevitable transition (50-100 years) to a new world energy

system largely dependent on renewables
Village Power ’98

09:30-10:00 Keynote Addresses

•Tim Wirth, Director, UN Foundation

•Ambassador Leonard Spearman, Director, Renewable Energy

for African Development
1

Keynote Address

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Ambassador Spearman

Good morning, and thank you for that introduction. I would like to begin by offering my

gratitude for helping to make this conference possible to Mr. Koch-Weser of the World Bank, to

Richard Truly of NREL, and to Allan Hoffman of the Department of Energy. I’d also like to

recognize all of the staff at NREL and the World Bank whose attention to detail have helped us to

frame the challenging agenda for this conference.

This Village Power Workshop is especially important coming on the heels of the recently

concluded World Energy Conference in Houston. Finally, after many years, the World Energy

Conference may be coming to recognize the importance of the renewable energy sector for rural

development. I lived in Houston as President of Texas Southern University, and I can tell you

that such a profound shift among those in the fossil fuel and utility industries has been a long time

in the making. I believe that this shift is in large part a reflection of the efforts undertaken by the

people in this room.

(THE CHALLENGE OF RURAL ENERGY)

I served as Ambassador in two African countries, and have followed the challenges and

opportunities associated with village power most closely in Africa. To those of you with a focus

elsewhere in the world, please bear with me if most of my examples come from the continent that

I know well.

Despite the unrest which still beleaguers much of the African continent, I remain impressed by the

emergence of many of the newer leaders as they embrace the basic tenets of democratic

governance. They are well aware that accompanying increased freedom and self-governance,

economic growth, access to education and health are essential ingredients to an improved social

order. The role that energy plays in this process is too critical to rest solely on the statistical

probability that power will eventually reach rural and urban communities. It is no coincidence

that those countries embarking on the path to democracy—among them Uganda, Botswana,

South Africa, and Namibia, are also launching ambitious village power programs.

All of us are cognizant of the reality that economic and social development throughout the

developing world is hampered by a lack of access to economical and reliable sources of power.

The advent and expansion of global communication-- or what might be called the “CNN Factor”--

has led to the misperception that city dwellers are modernizing, while the rural villages stagnate.
2

This misperception contributes to extremely high urbanization rates, not only in Africa, but

around the world. Botswana has one of the world’s lowest electrification rates, and its rural to

urban migration rate is among the highest in the world. While I can’t prove it, I don’t think that

this is a coincidence. Minister of Energy Mamadou Diouf of Senegal told me earlier this year that

one his government’s biggest concerns was Dakar’s high urbanization rate. As such, he

continued, the urban infrastructure is being strained in an effort to meet the increased health,

education and job demands now placed on Dakar and other Senegalese cities. That same

sentiment is frequently expressed to me by many Energy Ministries throughout the continent.

And for the 40-60% who remain in the rural villages, a disproportionate share are women, as men

move to urban areas seeking other forms of employment. These women who remain- aside from

some subsistence gained from farming- often have little opportunity to earn a livable income.

The irony, of course, is that women are the principal food producers in Africa, and stand to

benefit most from improved access to energy in rural communities.

And yet, the people who flee their farms for the urban lights and amenities seldom find themselves

better off. The infrastructure of the city does not have enough jobs to accommodate this

burgeoning underclass. All of us-- even those in the Western world-- are painfully aware of the

consequences that will accrue, i.e. rising crime rates, increased drug use, decaying schools, and

the list goes on. The vicious circle is intensified when student test scores and family health suffer

as fewer teachers and health professionals are willing to work in areas that are devoid of basic

amenities like lighting and hot water.

I am not arguing that providing power in rural areas will keep people from migrating to the cities.

Sometimes it will, and one of my observations from a study of a Botswanan village which

received solar power is that some urbanized families were returning to their home village. In the

words of one such family member, “Manyana looked like a real town now.” However, even when

rural power does not prevent migration, it can help to improve people’s social and economic wellbeing, so that they are a benefit and not a burden to the urban community that they eventually

join.

Village power can help people take advantage of economic development opportunities in rural

areas. If farmers have access to markets, reliable power sources can help them increase the value

of their products through regular irrigation, post-harvest processing, or improved storage and

preservation. In Uganda, coffee farmers lose hundreds of thousands of dollars annually because

they are unable to dry their crop sufficiently. The United States Government is supporting a

dairy project in Kenya, but without power for refrigeration, much of the product spoils before

getting to market. I believe that the promotion of productive applications is going to be critical

to the success of village power programs.

(ROLE OF RENEWABLES)

The traditional approach to providing power in rural villages has been to expand the electric utility

grid. As South Africa’s municipalities and its utility are discovering, grid extension rapidly

becomes too expensive. In a rural area near Durban, South Africa, the local municipality pledged

a cost cap of 3,500 rands (about $700 at the time) per installation under its rural grid extension
3

program. A local energy consultant reports that to date they have rarely spent less than one-anda-half times that, and have now given up that grid extension effort.

With a line extension cost in excess of $10,000 per mile, most developing nations will never be

able to bring electricity to the villages where most of the population lives. Instead households

must continue to rely on smoky fuels like coal and wood for heat, and dangerous kerosene or

expensive dry cells batteries for lighting. Burning wood and dung for cooking expose children and

women to harmful indoor air pollution, reduces soil fertility, and accelerates deforestation rates.

I experienced this problem as a personal tragedy, when, as Ambassador to Lesotho, I received a

call from the sister of my driver. It appears that on a cold night, he, like many Basotho, lit a coal

fire. Unfortunately, he died from exposure to the fumes that built up in his one room apartment.

(THE ROLE OF THIS CONFERENCE)

So what can you in your deliberations over the next few days to overcome the barriers to the

expansion of renewable technology and abate this serious state of affairs? Participants at the

September 1997 World Solar Summit in Harare noted that the growth of sustainable renewable

energy use in Africa faced many barriers:

• Lack of appropriate financing mechanisms for rural customers;

• Inadequate distribution and maintenance infrastructure for renewable energy technologies;

• Poor standardization and quality control measures; and

• Relative inexperience of developing country renewable energy enterprises.

We can overcome each of these barriers, and these topics will form the bulk of the deliberations

over the next several days.

We know that the governments of most developing nations are anxious to cooperate in bringing

energy to the rural sectors of their economy. In 1989, prior to the civil strife in Rwanda, we

prepared a report in partnership with that country’s government on the hidden economy-- which

is another phrase for the rural economy. The reliability of the women in that sector convinced me

that they are anxious to get on with the business of poultry production, making school uniforms,

hairstyling and a host of other activities-- if they could only extend their day and get access to

lights and power. Those of you here have the means of extending that day. You have the

capability of reducing the plethora of debilitating diseases that plague their children by providing

hot water and vaccine refrigeration.

You have the capability of making it possible for children to read at night and thus improve their

educational opportunities. You have the ability to permit rural enterprises to flourish both day

and night. This Workshop may be just the impetus we need to raise the role of renewables in

addressing many of the problems affecting the millions who reside in our rural villages.

(THE CALL TO ARMS)
4

I’ve talked so far about the need for reliable sources of power in rural communities around the

world, and about the promise that renewable energy technologies in particular hold for providing

village power. Many of you have heard all of this before, so now I would like to pose a question:

“What’s taking so long?”

The World Bank published its “Best Practices for PV Electrification” document several years ago.

Why haven’t those projects already been replicated worldwide? We’re told that rural

electrification is a multi-billion dollar opportunity for industry. Sales are increasing, but is anyone

in the PV or wind industry in danger of threatening Bill Gates as the world’s richest person?

Perhaps the answer is that many of us have been looking for a “magic bullet”-- a single fix that

will jump start village power programs around the world. At first we believed the magic bullet

was technical: let’s make sure the battery is suited to the PV system; let’s make sure the wind

assessment is done correctly.

For most of this decade, we have believed the magic bullet is access to capital. “If only the

perfect finance mechanism were developed,” we were told, “thousands of village power projects

would take off.” Well, now there are a wide variety of large and small finance programs

underway, with more acronyms than I care to count. And yet most rural villages remain without

power.

Energy plays a fundamental but complex role in urban and rural society, and our approach to

making reliable energy available has to acknowledge that complexity.

Taking a single approach to a problem is not unique to renewable energy. As a former

Ambassador through two Presidential Administrations, I’ve learned that you focus on those

battles that you have a chance of winning. But given the complexity of energy’s societal role, it

may prove useful, I think essential, to broaden our understanding.

Let’s look at the issue of finance, as an example. We believe we have to address the problem

that rural communities lack access to capital. We have developed beyond simply subsidizing

rural electrification, and there now exist a growing number of public and private initiatives

underway to provide affordable credit. As Chairman of Renewable Energy for African

Development, my organization helped design and implement an end-user credit program for solar

systems in Namibia, which has since been re-capitalized and expanded with European donor

support.

But is addressing credit the only way to make systems affordable? What would happen to

worldwide sales if we built PV systems that cost fifty cents per watt, instead of $4? If we can

build better and less expensive systems, it might make the job of those providing rural credit

easier.

But would even this be enough? If people cannot afford renewables, what can we do to increase

their purchasing power? Can we jump-start a process, a “virtuous circle”, whereby strengthening
5

incomes helps people to afford renewables, which themselves can help provide direct economic

benefits?

Let’s look at another “magic bullet” -- technical training for ensuring system reliability. Many

organizations have moved from providing expatriate trainers from the North to providing

“Training of Trainers” workshops, where host country nationals are given the capability to

develop and conduct technical training on their own. Properly done, this approach can be highly

successful, and our group has trained dozens of technical instructors throughout Southern Africa,

to the point that we have helped to change the way many technical subjects are taught in African

schools and universities. There are even initiatives underway for worldwide trainer accreditation,

and certification of those who have undergone that training.

But what if we had renewable energy systems that were so low-maintenance and easy to

understand that only the most cursory training were required in the first place? I say this not to

discredit the current training approach. Instead I want to stress that energy plays a fundamental

but complex role in urban and rural society, and our approach to making reliable energy available

has to acknowledge that complexity.

One dimension to this complex puzzle that is only now beginning to gain attention is gender.

When I use the word gender, I’m talking about the different complex roles that men and women

play in society around the world. One gender difference that has been well established: women

are good credit risks. This point was discussed at some length during Monday’s pre-conference

workshop on gender and renewable energy, and I believe it is important that it be addressed in the

many energy finance discussions that will take place over the next several days.

As I mentioned earlier, another gender difference is that women are often the primary energy

users in rural communities, and thus the greatest beneficiaries of village power projects. In South

Africa, a solar project initiated in the community of Maphephethe was stalled, seemingly against

all odds. Realizing this, the project manager switched his approach and hired local women as

outreach and sales agents instead of men. These women were able to identify the problems and

concerns of their counterparts, and overcame some of the communications barriers that formed

when local men addressed the same women. Loan subscription rates increased dramatically, and

the South African government is looking to replicate that success.

On the technical reliability front, the fact that men are more likely to migrate to urban areas for

employment affected the training component of the Zimbabwe GEF solar project. When

Zimbabwe’s Biomass Users Network trained rural men in system maintenance, these men

promptly took their skills to the city, where they could make more money. The rural women,

however, tended to remain in the village after training, and have proven crucial to that component

of the GEF project.

Both of these examples point to how we must adjust our thinking in order to ensure both that our

projects are successful, and that they reach those who will benefit from them the most. In terms

of meeting our initial targets and achieving long term project sustainability, it is important that we

make every effort to involve women as well as men.
6

(CONCLUSION)

There is no single magic bullet that will enable us to rapidly scale up the provision of power in

rural villages. If it were that easy, we wouldn’t have taken the time-- once again-- to set aside

our important day-to-day work, gather together from around the world, and share our ideas and

experiences. However, we have learned a great deal working together over the years, and I’m

confident that we’ll be able to report on our successes, and continue to chart a way forward,

when we meet again next year.

Thank you all very much.
Village Power ’98

10:15-11:15 Defining the Problem: Scaling-up Electricity

Access for Sustainable Rural Development

- Chair, Callisto Madavo, Vice President for Africa,World Bank

•The Asia Challenge - Mieko Nishimizu, Vice President, South

Asia, World Bank

•Latin America and Caribbean Needs for Rural Energy

 – Ambassador Christopher Thomas, Assistant Secretary

General, Organization of American States

•The Challenge and Needs in Africa - Mark Tomlinson,World

Bank
1

"Coming out of the Darkness..."

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Mieko Nishimizu

I want to share with you this morning how my colleagues in the South Asia Region and I think

about the centrality of "Village Power" to our mission -- poverty alleviation.

Ask any village woman you meet in South Asia, what she wants most of all.

"I want to come out of the darkness, and learn to read and write," she will say.

From Pakistan to Bangladesh, Sri Lanka to Nepal, Bhutan to India, from village to village, all

over the subcontinent, their language may be different, but their dreams are the same.

In South Asia, people say:

 "Educate a boy, one only educates a human being, Educate a girl, one educates

generations to come."I mean no offence to you gentlemen, but am sure you understand me

well.Girls' education, and women's literacy, is central to poverty alleviation, sustainable social and

economic development, and nation building.

So, I walked the grass roots, listened to village sisters, and thought I understood them.

I thought "coming out of the darkness" meant out of their illiterate mental darkness.

How wrong I was...

In May this year, just before the nuclear tests of India and Pakistan, I spent 2 days and nights in a

highland village of Azad Jammu Kashmir, Pakistan. There I met a widow, and she told me about

her daily life.

 "I get up before the sun, and fetch the water and fuel wood...

 One hour going up and one hour coming down the mountain.

 Start fire, make bread and tea for the children.

 Feed my cow and goats.

 Clean the animal shed, sweep the house.

 I may eat, if anything is left.

 Go out to the field, before the sun gets too hot.

 I grow wheat and vegetables. No, I don't grow enough to sell.
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 Give children some tea, sometimes only warm water.

 Go back to the field again.

 I may do some wash.

 Go fetch the water and wood again before the sun goes down.

 Takes longer in the afternoon. It is hot and I am tired.

 Start fire again, and make supper -- some bread and lentils.

 Sometimes, only tea to drink.

 More housework.

 I talk with my children before sleeping -- I like this time best."

Then and only then I realized what "coming out of the darkness" really meant.

Imagine living your life like that -- day in, day out, 365 days per year, every year, for the rest of

your life.

She taught me that "coming out of the darkness, to learn read and to write" means:

 to break out of such sub-human drudgery,

 to have that little precious time for their personal growth as a mother and human being, and

 to come out of the mental darkness.

She has access to an adult literacy program. But, 24 hours a day is barely enough just to survive.

In 1996, a Rural Household Energy Survey studied 5,048 households across India. Can you

guess how much time a literate Indian village woman spends in reading? 8 minutes and 24

seconds per day!

West Bengal is a state known for its literary tradition, but low rural electricity access.

 An average West Bengali village woman reads 3 minutes and 36 seconds per day.

Punjab is a state with less literary accomplishments, but better rural electricity access. An average

Punjabi woman spends more than 17 minutes reading each day...

South Asia's village women need desperately to save time, to gain literacy,

 to look after their own health, and of their children,

 to help their children learn,

 to participate in income generating activities, and

 to escape the poverty trap.

To come out of the darkness, of poverty of mind and of means, they need access to village power,

to save that precious time.
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And when they do, social and development impact of women's empowerment extends well

beyond just one woman, to her family, to her community, and for generations to come.

That, is how my colleagues and I think about the strategic centrality of "Village Power" to our

mission -- to alleviate poverty in South Asia.

South Asia has a total population of about 1.3 billion people, the majority in rural areas: (Bhutan

- 94%; Nepal- 89%; Bangladesh - 81%; Sri Lanka - 78%; Maldives - 73%; India - 74%; and

Pakistan - 65%)

About half, or 700 million, of South Asia's population have no access to electricity.

So, of 2 billion who lack access to energy worldwide, more than a third live in South Asia.

At least 350 million women in rural South Asia need electricity to free them from the bondage of

traditional fuel transportation and water portage, smoky cooking, the dangers of lightless nights,

and most of all, to gain the literacy they want so badly.

Yet, in many parts of the region, electricity distribution cables run through, over, and around

villages, but the people lack access to this power.

Governments in the Region have invested tremendous amounts of resources in electricity

generation, transmission, and distribution. But, these Utilities and the clientele they serve are:

 bankrupt and insolvent;

 inefficient and ineffective;

 corrupt, steal the electricity, or unwilling to pay for it; and

 benefit from subsidies intended for the poor and rural population.

Yes, we do get angry whenever we see these conditions, and become even more passionate in our

power sector work for poverty alleviation. Country Assistance Strategies for all countries which

are active borrowers in the region have clear and sector-wide strategies for addressing power and

poverty alleviation.

We believe in a comprehensive approach that includes both radical power sector reform, and also

Village Power and partnership with other agencies and entities, which can provide leadership and

sustained support.

I do look forward, very much, to the fruits of this gathering of experts, to help us fight poverty in

our region.

Thank you.
Latin American and Caribbean Needs for Rural Energy

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Ambassador Christopher R. Thomas

SPECIALLY INVITED GUESTS,

LADIES AND GENTLEMEN:

IN THE CONTEXT OF DEVELOPMENT FOR THE TWENTY-FIRST CENTURY,

THE QUESTION OF ENERGY PRODUCTION AND SUPPLY IS A KEY FACTOR. OUR

CURRENT INTERNATIONAL ENVIRONMENT CANNOT BE SUSTAINED WITHOUT

ENERGY; AND ENERGY WILL CONTINUE TO BE A FUNDAMENTAL ELEMENT FOR

OUR FUTURE PRODUCTION.

THE ORGANIZATION OF THIS CONFERENCE AS A JOINT VENTURE

BETWEEN THE NATIONAL RENEWABLE ENERGY LABORATORY (NREL) AND THE

WORLD BANK ON SCALING UP ELECTRICITY ACCESS FOR SUSTAINABLE RURAL

DEVELOPMENT, REFLECTS A MERGING OF POLICY AND FINANCE IN THE

INTEREST OF THE RURAL ELECTRIFICATION AGENDA FOR LATIN AMERICA AND

THE CARIBBEAN. IT IS IMPORTANT THAT SUCH EFFORTS BE TRANSLATED INTO

CONCRETE PROGRAMS AND PROJECTS WHICH WILL GENERATE DEVELOPMENT

OF OUR RURAL AREAS IN THE IMMEDIATE FUTURE.

IT IS CUSTOMARY TO SEE RURAL AREAS AS HAVING VERY LIMITED NEED

FOR ENERGY BEYOND THAT PROVIDED BY TRADITIONAL SOURCES SUCH AS

FIREWOOD, BAGGAS, CHARCOAL, RICE HUSK OR KEROSENE OIL, DEPENDING ON

WHAT IS MORE NATURALLY OR CHEAPLY AVAILABLE IN A PARTICULAR AREA.

THESE TRADITIONAL PERCEPTIONS, HOWEVER, MUST CHANGE AS THE

CIRCUMSTANCES AND NATURE OF DEVELOPMENT HAVE EVOLVED IN WAYS
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WHICH REQUIRE WIDESPREAD DISTRIBUTION OF LOW COST ENERGY TO EVEN

THE MOST REMOTE RURAL COMMUNITIES.

THE GLOBAL COMMUNITY HAS MADE GREAT STRIDES OVER THE LAST

TWO DECADES. NOT TOO LONG AGO OUR GLOBAL SYSTEM WAS HEAVILY

REGULATED BY NATIONAL GOVERNMENT AND CORPORATE POLICIES. TODAY,

IT HAS BECOME A HIGHLY INTERCONNECTED SYSTEM, PROGRESSIVELY

DEREGULATED AND RAPIDLY CONSOLIDATING A PROCESS OF GLOBALIZATION

OF UNPRECEDENTED IMPLICATIONS FOR ALL COUNTRIES.

GLOBALIZATION IS NOT SIMPLY A PHENOMENON AFFECTING THE

ECONOMIC, FISCAL AND EVEN SOCIO-CULTURAL DIMENSIONS OF

INTERNATIONAL RELATIONSHIPS. IT IS RATHER A FORCE OPERATING WITH A

DYNAMISM WHICH CAN ONLY BE SUSTAINED IF CERTAIN CONDITIONS EXIST.

THESE CONDITIONS RANGE FROM READILY AVAILABLE

TELECOMMUNICATION/INTERNET SERVICES, READILY AVAILABLE

TRANSPORTATION FACILITIES, EASY ACCESS TO THE OUTSIDE WORLD, AND

SUSTAINABLE USE OF NATURAL RESOURCE FOR INCREASED PRODUCTION OF

GOODS AND SERVICES

GLOBALIZATION CAN ONLY BE SUSTAINED UNDER THOSE CONDITIONS IF

THERE EXISTS A NON-DISCRIMINATE AND COMMERCIALLY VIABLE

AVAILABILITY AND USE OF ENERGY − THE TYPE OF ENERGY, WHICH WILL

OFFER CONTINUED ECONOMIC GROWTH WHILE AT THE SAME TIME OFFERING

INCREASED ENVIRONMENTAL PROTECTION. THE INCREASING RURAL

POPULATIONS OF LATIN AMERICA AND THE CARIBBEAN MAKE THIS TYPE OF

ENERGY AN INDISPENSABLE REQUIREMENT. INDEED, GIVEN THE TREMENDOUS

ECONOMIC DISPARITIES OF OUR REGION AND THE HEMISPHERIC PRIORITY NOW

FOCUSSED ON THE ALLEVIATION OF POVERTY, THE OPTIMIZATION OF ENERGY

SOURCES AND USAGE IS CENTRAL TO FUTURE DEVELOPMENT.
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THE EXPRESSION ‘RURAL’ COMMUNITIES EVOKES IDEAS OF REMOTENESS,

DISTANCE, AND INACCESSIBILITY. THE EXPRESSION SOMETIMES CONJURES UP

A SENSE OF HOPELESSNESS IN THE FACE OF THE DIFFICULTIES TO BE

OVERCOME IN BRIDGING THE GAP IN THEIR DEVELOPMENT. HISTORY HAS

SHOWN US, HOWEVER, THAT WHENEVER IT WAS NECESSARY MAN CONQUERED

THE SEAS, MOUNTAINS, RIVERS, AND FOREST IN SEARCH FOR WHAT HE

CONSIDERED VITAL TO HIS SURVIVAL AND FOR THE FUTURE OF HUMANITY.

THE CHALLENGE OF MEETING THE ENERGY NEEDS OF RURAL AREAS IN LATIN

AMERICA AND THE CARIBBEAN IS THEREFORE MINIMAL IN THE FACE OF THE

SOLID ACHIEVEMENTS WHICH TESTIFY TO THE EXTENT OF OUR POSSIBILITIES. I

AM ALSO PLEASED TO NOTE HERE THAT THIS CHALLENGE IS NOW FRONTALLY

ENGAGED BY THE LEADERSHIP OF OUR REGION.

IN THEIR PREPARATION FOR THE SECOND HEMISPHERIC SUMMIT OF THE

AMERICAS HELD IN CHILE EARLIER THIS YEAR, WORKING GROUP NUMBER

SEVEN, CHARGED WITH DEVELOPING STRATEGIES FOR RURAL

ELECTRIFICATION IN THE HEMISPHERE, HAD THE FOLLOWING OBJECTIVES:

“TO PROMOTE AND ACCELERATE THE DEVELOPMENT OF ECONOMICALLY

SUSTAINABLE SOLUTIONS THAT WILL INCREASE ENERGY SERVICES IN

RURAL AND INDIGENOUS COMMUNITIES THROUGHOUT THE HEMISPHERE;

TO ESTABLISH HEMISPHERIC COOPERATION FOR IMPLEMENTATION OF

SUSTAINABLE RURAL ELECTRIFICATION DEVELOPMENT;

TO PROMOTE THE FLOW AND DISSEMINATION OF INFORMATION, FOSTER

TECHNICAL COOPERATION, STIMULATE PRIVATE SECTOR INVOLVEMENT

AND TO ESTABLISH COORDINATED STRATEGIES TO RESOLVE RURAL

ELECTRIFICATION ISSUES AMONG THE COUNTRIES IN THE HEMISPHERE,

TAKING INTO CONSIDERATION THEIR SOCIAL, CULTURAL,

ENVIRONMENTAL, GEOGRAPHIC AND ECONOMIC DIFFERENCES.”

THESE OBJECTIVES REFLECT THE GROWING AWARENESS OF LATIN AMERICAN

AND CARIBBEAN COUNTRIES OF THE NEED FOR ENERGY SUPPLY IN ORDER TO

PROMOTE THE ECONOMIC GROWTH OF THEIR COMMUNITIES, IN THE CONTEXT
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OF NATIONAL AND HEMISPHERIC OBJECTIVES. THESE OBJECTIVES ALSO

UNDERLIE THE COMMITMENT OF THE HEADS OF GOVERNMENT OF THE

HEMISPHERE WHEN THEY STATE IN THEIR PLAN OF ACTION THAT:

“...SUSTAINABLE ENERGY DEVELOPMENT AND USE PROMOTE ECONOMIC

DEVELOPMENT AND ADDRESS ENVIRONMENTAL CONCERNS.

GOVERNMENTS AND THE PRIVATE SECTOR SHOULD PROMOTE INCREASED

ACCESS TO RELIABLE, CLEAN AND LEAST COST ENERGY SERVICES

THROUGH ACTIVITIES AND PROJECTS THAT MEET ECONOMIC, SOCIAL

AND ENVIRONMENTAL REQUIREMENTS WITHIN THE CONTEXT OF

NATIONAL SUSTAINABLE DEVELOPMENT GOALS AND NATIONAL LEGAL

FRAMEWORK.”

THEY FURTHER COMMITTED THEMSELVES TO “IDENTIFY FOR PRIORITY

FINANCING AND DEVELOPMENT AT LEAST ONE ECONOMICALLY VIABLE

PROJECT IN EACH OF THE FOLLOWING AREAS: NON-CONVENTIONAL

RENEWABLE ENERGY, ENERGY EFFICIENCY AND CLEAN CONVENTIONAL

ENERGY.”

PROJECTS IN THE AREAS MENTIONED ABOVE ARE VITAL FOR THE FUTURE

DEVELOPMENT OF RURAL COMMUNITIES IN LATIN AMERICA AND THE

CARIBBEAN BECAUSE OF THE ENORMOUS DISADVANTAGE OF NEGLECT WHICH

AFFECT THESE COMMUNITIES. WHEN FUNDS ARE LOW, THEY ARE USUALLY THE

FIRST TO BE FORGOTTEN AND RURAL AREAS FIND THEMSELVES FACING A

NUMBER OF HANDICAPS, MANY OF WHICH ARE AGRAVATED BY THE ABSENCE

OF ELECTRICITY SUPPLY. THESE DISADVANTAGES RANGE FROM: ABSENCE OF

PROPER SOCIAL SERVICES (E.G., HOSPITALS AND SCHOOLS), NON-EXISTENCE OF

ALMOST ALL COMMERCIAL ACTIVITY, LIMITED POSSIBILITIES FOR

DEVELOPMENT EVEN IN THOSE SECTORS WITH THE GREATEST POTENTIAL (E.G.,

TOURISM); TO LIMITED INTERACTION WITH THE OUTSIDE WORLD – A

CONDITION WHICH REINFORCES THE RETARDATION OF THESE COMMUNITIES
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ONE OF THE BASIC FINDINGS OF THE UNITED NATIONS CONFERENCE ON

NEW AND RENEWABLE SOURCES OF ENERGY OF 1981 WAS THAT THERE WAS

TREMENDOUS POTENTIAL SOURCES OF ENERGY IN MANY RURAL AREAS OF THE

WORLD WHICH COULD BE TAPPED FOR PRODUCTIVE DEVELOPMENT. IN LATIN

AMERICA AND THE CARIBBEAN, NON-CONVENTIONAL RENEWABLE ENERGY,

SUCH AS SOLAR, WIND AND GEOTHERMAL POWER, ARE RELIABLE SOURCES

WHICH CAN BE PROFITABLY EXPLOITED FOR RURAL ELECTRIFICATION AND

PRODUCTION.

INVESTMENT IN RENEWABLE ENERGY INCREASES ENERGY SECURITY BY

DEPENDENCE ON LOCAL RESOURCES AND THE APPLICATION OF ENERGY

EFFICIENCY STRATEGIES IN CONSUMPTION PATTERNS. PROJECTS IN THE

PRODUCTION OF SUCH ENERGY HAVE ALREADY BEEN IMPLEMENTED IN SOME

COUNTRIES IN LATIN AMERICA. BOLIVIA IS A CASE IN POINT.

THERE IS NEED, HOWEVER, FOR MANY MORE SUCH PROJECTS IN OTHER

RURAL AREAS OF LATIN AMERICA AND THE CARIBBEAN. SUCH PROJECTS

COULD ALSO INCLUDE THE EXPORT OF ELECTRICITY FROM ONE COMMUNITY

TO ANOTHER WITHIN AND ACROSS NATIONAL BORDERS. THIS WOULD, OF

COURSE REQUIRE THE ELABORATION OF REGULATIONS GOVERNING

INTERNATIONAL TRADE IN ENERGY. HOWEVER, WITH HEMISPHERIC POLITICAL

WILLINGNESS FOR ACTION IN THIS AREA ALREADY IN PLACE, THE FUTURE

SEEMS ENCOURAGING.

WHAT APPLIES FOR NON-CONVENTIONAL ENERGY ALSO APPLIES FOR

SUCH CONVENTIONAL ENERGY SOURCES AS PETROLEUM AND NATURAL GAS.

EXPERT STUDIES, HOWEVER, INDICATE THAT AT THE RATE OF PRESENT GLOBAL

CONSUMPTION, MOST FOSSIL FUEL SUPPLY WILL BE SIGNIFICANTLY DEPLETED

WITHIN THE NEXT TWO DECADES. WITH OR WITHOUT THAT DEPLETION,

GLOBAL ECONOMIC DEVELOPMENT CANNOT BE SUSTAINED ON CONVENTIONAL
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ENERGY SOURCES INDEFINITELY. SINCE GLOBAL DEVELOPMENT AND

STABILITY MUST ULTIMATELY BE A FUNCTION OF RURAL DEVELOPMENT,

FUTURE HEMISPHERIC DEVELOPMENT IS AN INTERRELATION RATHER THAN A

PRODUCT OF RURAL DEVELOPMENT.

ONE BY NO MEANS ASSUMES THAT IMMEDIATE AND EFFECTIVE

RESPONSE IN THIS CONTEXT WILL BE EASY. HARNESSING THE ENGINES OF

GROWTH TO ENSURE DEVELOPMENT, ESPECIALLY RURAL DEVELOPMENT, HAS

ALWAYS BEEN A DIFFICULT TASK IN LATIN AMERICA AND THE CARIBBEAN.

BARRIERS APPEAR FORMIDABLE. HOWEVER, MANY OF THESE BARRIERS CAN BE

GRADUALLY OVERCOME IF APPROPRIATE PUBLIC POLICY CAN BE ELABORATED

AND IMPLEMENTED IN RELEVANT SECTORS AS THEY RELATE TO RURAL

DEVELOPMENT.

IN MOST INSTANCES, PUBLIC POLICY CAN BE IMPORTANT ALSO IN THE

NURTURING OF GROWTH. FOR EXAMPLE, IN THE CONTEXT OF A

PUBLIC/PRIVATE SECTOR PARTNERSHIP WHERE PUBLIC SECTOR HAD BEEN

UNABLE TO PROVIDE BASIC INFRASTRUCTURE, CREDIT OR OTHER BASIC

INPUTS, IT COULD STILL OFFER INCENTIVES IN THE AREA OF LABOUR

LEGISLATION, LAND AND RELATED CONCESSIONS. SUCH SECTORAL POLICIES IN

THE AREA OF ELECTRICITY PRODUCTION FOR RURAL AREAS WILL ULTIMATELY

BE SUCCESSFUL AND HIGHLY PROFITABLE IN THE LONG RUN BECAUSE THEY

WILL FORM THE BASIS FOR EXPANDING OTHER SECTORS OF THE ECONOMY

INTO THE RURAL COMMUNITIES. EXAMPLES OF SUCH POLICIES FAVOURING

EXPANSION IN THE PAST HAVE BEEN THE CASE OF BASIC INDUSTRIES IN

BRAZIL, TEXTILES IN COLOMBIA, MAGUILADORES IN MEXICO, TOURISM IN

BARBADOS.

IN THE CONTEXT OF TWENTIETH CENTURY CIRCUMSTANCES, THERE IS

NEED TO CORRECT INHERENT IMBALANCES AND INEQUALITIES IN THE
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OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT AND THE DISTRIBUTION OF

THE BENEFITS OF DEVELOPMENT INITIATIVES. LATIN AMERICA WILL CONTINUE

TO HAVE A COMPARATIVE ADVANTAGE, GIVEN ITS SIGNIFICANT NATURAL

RESOURCE BASE. BUT IN THE CONTEXT OF THE TWENTY-FIRST CENTURY

CIRCUMSTANCE, THIS IS NO LONGER ENOUGH TO ENSURE ECONOMIC SUCCESS.

NEW NON-TRADITIONAL EXPORTS ARE BEING SOLD AND MUST BE SOLD IN THE

GLOBAL MARKETPLACE, WITH PARTICULAR AND EQUAL ATTENTION BEING

PLACED ON QUALITY, DESIGN AS TO PRICE AND QUANTITY. THESE ARE

COMMODITIES WHICH CAN BE PRODUCED EQUALLY WELL IN RURAL

COMMUNITIES EQUIPPED WITH THE NECESSARY INFRASTRUCTURE AND

CAPABLE HUMAN RESOURCE. ELECTRIFICATION OF THESE COMMUNITIES

SHOULD THEREFORE BE AN INTEGRAL PART OF NATIONAL AND REGIONAL

POLICIES FOR HEMISPHERIC DEVELOPMENT AND INTEGRATION.

THE ENERGY SECTOR HAS NOT ESCAPED THE ONSLAUGHT OF

PRIVATIZATION AND LIBERALIZATION, WHICH IS SWEEPING THE GLOBAL

ECONOMIC SPACE. ACCORDING TO THE 1998 CARIBBEAN BASIN PROFILE

“INDEPENDENT POWER PROJECTS ARE EVOLVING FROM THE SIMPLE

SUPPLY OF ELECTRICITY TO MEETING A COUNTRY’S BROADER ENERGY

NEEDS, AND INDUSTRY EXPERTS CLAIM THAT COUNTRIES WHICH GO

BEYOND PRIVATIZATION TO FULL DEREGULATION, ALLOW INDUSTRY TO

SOLVE THE PROBLEMS AND PROVIDE BETTER SOLUTIONS... THE

INDUSTRY HAS SEEN AN EXPANSION IN THE NUMBER OF POWER PLAN

DEVELOPERS OFFERING A FULL COMPLEMENT OF SERVICES. THIS

INCLUDES THE FIRST STEPS OF EVALUATING A COUNTRY’S

INFRASTRUCTURE (E.G., AVAILABILITY OF INDIGENOUS FUELS AND THE

ABILITY TO SELL ELECTRIC POWER AT AN ECONOMICAL RATE) TO CREDIT

RATING AND INVESTMENT STUDIES.”

AN OVERVIEW OF THE REGION’S ENERGY SITUATION WOULD SUGGEST

THAT THE REGION IS IN A PERIOD OF TRANSITION. IT IS THEREFORE TIMELY TO

ENSURE THAT POLICIES IN THAT SECTOR COVER THE ELECTRIFICATION AND

SUBSEQUENT DEVELOPMENT OF RURAL COMMUNITIES. IT IS ALSO TIMELY TO
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REINFORCE THE PUBLIC/PRIVATE SECTOR AWARENESS OF THE NEED FOR

REALISM, EFFICIENCY AND COMMITMENT IN THIS REGARD.
Village Power ’98

11:15-12:00 Meeting the Challenge to Rural Access

 - Chair, James Bond,World Bank

•Private Sector Strategy to Increase Rural Electricity Access

– Herre Hoekstra, Shell Renewables

•UN Sustainable Energy Initiative - Susan McDade,Energy and

Atmosphere Programme, SEED and UNDP

•Renewable Energy Finance: Matching Resources and Needs

- Michael Allen,E&CO

•Technology Options for Meeting Rural Electricity Needs

- Larry Flowers, NREL
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Energy for Sustainable Development

UNDP Initiative for Sustainable Energy

Energy and Atmosphere Programme

United Nations Development Programme

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Susan McDade

The United Nations Development Programme is the main grant window for technical assistance to

promote sustainable development within the UN family of organizations. With Country Offices

and programmes of cooperation in more than 130 developing countries, UNDP administers

approximately $900 million of development assistance from its core budget each year.

UNDP has worked on energy issues for a long time. Like many organisations we traditionally

approached energy from a sectoral point of view and looked at how to deliver supply options to

meet growing demand in developing countries through capacity building and project level

assistance. From 1974 to 1994 UNDP had 980 energy projects with a total programme value of

$630 million, $430 million from UNDP resources and $200 million from government cost sharing.

Only 12% of this assistance dealt with renewable energy and energy efficiency. Most cooperation

dealt with supply expansion in conventional energy. This was largely focused on technology

demonstrations, technical training and pilot projects. The approach was sectoral, dealing mostly

with Ministries of energy and electric utilities and many efforts on training and capacity building

were undertaken. There was an implicit assumption that expanded electricity supply would

stimulate national development. Many good things were achieved and national capacity was

strengthened. However overall trends in energy and development have become more

unsustainable; unsustainable in economic, social and environmental terms.

In 1995 UNDP’s Executive Board decided that UNDP’s core mandate and programme focus

should address poverty alleviation as goal number one. In this regard resources were prioritized

for efforts focusing on jobs creation and sustainable livelihoods, environmental protection and

regeneration, improving the status and participation of women in development, and support for

good governance.

UNDP is also called upon to assist programme countries to implement the goals and commitments

of the major UN conferences such as the Rio Conference on sustainable development, Beijing

Women’s Conference, the Cairo conference, Copenhagen Social Summit, Istanbul Habitat II

conference etc.

Developing countries look to UNDP as a source of neutral policy advice, support for human and

institutional capacity building, for access to information on technology and development trends in

other countries and regions, and as the primary entry point to engage in international debate on
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development issues related to national development and growth. In this context it was legitimate

to ask what role could UNDP have with regard to energy.

In 1996 UNDP initiated a major effort to fundamentally change our programming approach to

energy. As a sectoral, infrastructure of investment issue, UNDP has little comparative advantage

in supporting conventional energy supply expansion. While the multilateral development banks are

an important source of funding for infrastructure development, they too are increasingly less

relevant as a source of energy infrastructure financing as the total investment from the private

sector expands.

Let me give you some general numbers to illustrate what I mean. In 1995 the total value of

foreign aid from all sources worldwide was approximately $65 billion. The trend is downward

from a previous $74 billion in 1986. This is still the trend in development assistance; resources

are declining. Annual investments in energy supply in the mid 1990s were $450 billion/year and

are expected to increase to $750-1000 billion by 2020 according to the World Energy Council.

UNDP’s development assistance value was not, and is not, in the strength of volume. Increasingly

this is true for the multilateral development banks with regards to energy.

Meanwhile 2 billion people remain unconnected to electricity grids, 2 billion depend daily on

wood, biomass or dung for cooking and heating purposes, mainly collected and cared for by

women and girls. This is more than one third of the total population of our world. The poor pay

more for poorer quality energy services on a unit basis than do the rich. Inadequate or poor

quality energy services contribute to the lack of rural employment and contribute to urban

migration as people search for jobs and better living conditions. The trend toward urbanization in

developing countries means that there are a host of severe local environmental issues related to

energy consumption patterns that are on the rise. We are all familiar with the growing importance

of global climate change related to CO2 emissions mainly from fossil fuels. While this is a critical

global issue on which UNDP is working actively at the national and global level, climate change

alone will remain an uncompelling national and local policy change driver while 2 billion people

remain unserved and largely poor.

In this context total subsidies to conventional energy world wide in the mid 1990s were about

$300 billion/year. While $250 billion of this is concentrated in industrialized countries, energy

subsidies in developing countries are about $50 billion per year. This is roughly the same amount

as all foreign aid from all sources. In this context even if UNDP, and indeed all development

organizations were to programme every dollar of assistance to support for the energy sector, the

question of relevance and impact would remain valid. There are indications that these subsidies,

contrary to their objectives, do not benefit the poor, but distort markets blocking decentralized

and renewable energy based approaches to the provision of energy services.

As a result, the UNDP Initiative for Sustainable Energy (UNISE) was elaborated and shared with

all UNDP country offices in 1996. It was adopted as corporate policy by our senior

administration. It explains how UNDP’s core development areas, poverty, jobs, women and

environment are directly related to trends in the production and consumption of energy. Current

approaches to energy are unsustainable in economic, social and environmental terms. Poverty
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cannot be addressed without a fundamentally different approach to the provision of energy

services. UNISE suggests that UNDP development efforts in energy should focus on energy as an

instrument for socio-economic development. Activities to promote energy efficiency in the

production and use of energy, renewable energy commercialisation and dissemination, and the

introduction of modern, clean energy technologies are the three pillars of this strategy. UNISE

argues that the goals and recommendations of the UN global conferences cannot be realized

unless there is a fundamentally different approach taken to energy. This is true for both official

development assistance and commercial investment.

Energy needs to be approached as a complex development issue, involving a number of sectors

and institutional actors. The provision of energy services that meet the economic and social needs

of populations in developing countries is the key and this cannot be achieved only through the

extension of electricity grids. Energy services include cooking, heating, illumination, and

mechanical power.

Mainstreaming energy in our poverty programmes is our key programme goal today. We are

attempting to shift our programme focus to an integrated approach to energy. Energy and gender,

energy and environment, including the local environment, energy and the generation of productive

employment, energy and governance or how to stimulate the appropriate legal regulatory, policy

and financial frameworks to enable more sustainable approaches to energy, including renewable

energy, to advance in developing countries. These are all key areas for programme assistance.

This new approach advocates cross sectoral dialogue involving multiple government ministries

and agencies, private sector interests, producer and consumer stakeholder groups, civil society

organisations, technology innovators and other partners. This is consistent with the

recommendations of Agenda 21 and more closely relates to UNDP’s development mandate and

comparative advantage as a donor agency. UNDP activities shall increasingly focus on policy and

legal frameworks to promote sustainable energy, capacity building to link energy to other

development activities, integrated sustainable development planning at the national and regional

level and facilitating the introduction on modern cleaner energy technologies. This will not be

easy.

The current UNDP prgramming cycle runs from 1997-2001. An initial review of national

programme outlines and approved projects indicates that in over 40% of programmes at the

country level, there are sustainable energy elements planned or under implementation. This

includes not only programming of UNDP core resources, but also those additional resources

provided by the Global Environmental Facility. The GEF programme resources focusing on

renewable energy amounted to $63 million in 1997 and energy efficiency activities $56 million.

The GEF Small Grants programme administered by UNDP also funds NGO-led national projects

on sustainable energy with climate change benefits for up to $50,000. There are currently 44 such

projects. UNDP also provides project-level assistance through the Energy Account with the

support of bilateral donors. These focus on the sustainble energy approach.

UNDP also contributes to the international debate on energy. The General Assembly of the UN

met in June 1997 to look at a five year review of progress since Rio. To contribute to the
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discussion of on energy as a development issue, UNDP prepared "Energy after Rio Prospects and

Challenges", which was widely distributed and made available in six languages. It stressed that

current approaches to energy are unsustainable in economic, social and environmental terms and a

major shift in approaches to energy services delivery is needed if poverty and development goals

are to be met. The General Assembly took the decision that a special focus on energy was needed

to agree on how to move forward with these complex issues. As a result the ninth session of the

Commission for Sustainable Development (CSD9) will meet in 2001 and focus on energy

specifically.

This will be an important opportunity for both the public and private sector to come together on

operational issues to achieve sustainable energy objectives. In preparation for this UNDP,

together with the World Energy Council and the Secretariat of the CSD, are preparing a World

Energy Assessment to share what is known and agreed on sustainable energy and where

additional policy decisions and market reorientations are needed. We view the preparatory

process for this, which is now underway, as an important opportunity to debate what operational

changes are needed in current approaches to energy in order to meet sustainable development

goals. We are very pleased to be able to engage with a major private sector organization such as

the WEC on this effort.

In addition to country level programming UNDP supports regional and global programmes on

sustainable energy. At the HQ level we do this through the Global Programme, the Energy

Account, and regional programmes with the geographic bureaux of UNDP. These efforts support

strategic policy, technology and environmental issues related to energy. We provide support and

strategic advice to country offices where the majority of UNDP programme resources are

delivered through projects designed and managed at the national level. Recently the UN

Foundation was established based on the Turner gift to support UN causes. One of the three main

areas of focus is environment, and in particular the link with energy and climate change. This new

funding source offers an important new opportunity to work with NGO’s on sustainable energy

efforts of common interest.

Challenges remain. These are challenges for UNDP and the UN in general, and for all. They

include:

æ How to link development assistance effectively with the private sector so that markets can be

created for sustainable energy?

æ How to link commercial scale energy financing with pilot projects in order to scale up

approaches that work?

æ How to effectively focus international debate on policy actions rather than objectives which

are already agreed upon in order to operationalise sustainable energy?

æ How to stimulate national level activities that place energy issues within the overall

development context in a way that is relevant to poverty reduction and local development

needs of both women and men?
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æ How to stimulate energy activities that increase the number of energy entrepreneurs, create

jobs and income, and support new productive opportunities, especially in rural areas?

æ How to enable the 2 billion people without access to electricity to partake in the global

information and communication changes that potentially open up new access to learning and

information to overcome poverty?

æ How to ensure that development assistance especially for renewable energy, does not distort

markets at the national level and create unintended barriers to more sustainable approaches to

energy?

æ How to address the phenomenon of the urbanisation of poverty and the energy trends and

local pollution trends that this is creating?

æ How to involve women as participants, rather than objects, of development assistance

regarding energy, especially household cooking needs, energy planning and new financing

mechanisms?

Finally energy does not equal electricity. It does not equal a sector. It is not only a supply issue.

It is a complex issue related to how to deliver the energy services that people need (cooking,

illumination, heating, cooling) in an affordable, environmentally and economically sustainable

fashion to enhance the development opportunities of men and women and to overcome poverty.

UNDP is looking for new partnerships, increased relevance, how to stimulate not implement

sustainable energy changes, links with other UN agencies, multilateral development banks and the

private sector. Cooperation with ESMAP, the GEF, WEC, NGOs, technology developers, and

consumer associations may provide this.

Thank you very much.

Susan McDade

Technical Specialist

Energy and Atmosphere Programme, UNDP

304 East 45th St, Rm 999

New York, N.Y 10017

Tel: 212 906 6085

Fax: 212 906 5148

Email: smcdade@undp.org
1

Rural Energy – Matching Needs and Resources

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Dr Mike Allen

Executive Director, E&Co

383 Franklin Street

Bloomfield NJ 07003

Ph (973) 680 9100 Fax (973) 680 8066

E-mail eco@energyhouse.com

INTRODUCTION

It was perhaps a foreseeable irony that as the energy industries in the developing world move

increasingly closer to the “free market” model, there is a real threat that the gap between those

that have access to reliable energy supplies and the unserved in rural areas will widen. Much has

happened in the world of the “IPP’s”, dominated by large fossil fueled projects, each of which has

presented a series of challenges before reaching financial closure. Enormous amounts of

resources, time and money, have been poured into restructuring an industry that we know

performed poorly in the past. But have these resources been well used in the broader interests of

those whose countries are now the recipients of this restructuring? We can’t have our time over

again, nor should we seek to return to the past, but what are we learning and are we more able to

address the shortcomings of those systems that we are so eager to replace?

Few of you here need any introduction to the issues facing rural communities around the world as

they seek to provide themselves with even the most basic energy resources on a sustainable basis.

So where can they turn for support as the world moves into the market driven age, setting aside

many of the social responsibilities that government owned agencies at least acknowledged, even if

they achieved little in addressing them?

Recognizing the importance of energy as both a tool of development and as a crucial determinant

of environmental quality the question was raised, where can small amounts of money be placed at

critical times to create a substantial social and environmental benefit? Through trial and error,

the Rockefeller Foundation and E&Co, an independent organization created by the Foundation in

1994, have come to realize a few simple but nearly universal truths. Most good ideas die for lack

of small amounts of money to make them real enough for later stage investors and many ideas to

promote environmentally sound, affordable energy services are ideas that involve creating

business-oriented initiatives.

E&Co Activities

It is on this basis that E&Co has developed its strategy for intervention in the renewable energy

market – the investment of modest amounts (from $50,000 or less, to US$ 250,000 in any one

case) into what are perceived to be economically, socially and environmentally sustainable energy
2

enterprises. To many this will seem an anathema – particularly to those still captured by an

ongoing search for subsidies and government leadership, or who question the concept that smaller

scale rural energy developments could ever be considered sustainable, commercial ventures.

True, this is far from universal, but there are a growing number of successful projects lending

increasing credence to this approach.

To date E&Co has invested some US$ 4.7 million in 36 enterprises in 21 developing countries.

One key lesson that has been learnt through these investments is that money is not always the

problem. It is the link between money and the good ideas that is often missing in this sector. The

need to promote and strengthen private enterprises is therefore a key element to overcome these

issues. This is the gap E&Co is trying to fill.

There are a number of projects in which E&Co has played a part that can be provided as

examples, many of which may well be known to a number of you:

• Lotus Energy is a small photovoltaic company that has for several years served an

increasingly important role in the PV market in Nepal. In a move to address the cost

of imported balance of systems items, it established a small but well regarded local

manufacturing capability. Its market was small but the company had built up an

excellent network and strong working relationship with the Agricultural Bank of

Nepal, through which subsidized loans have been available for system purchase. The

company needed additional working capital to expand but local sources were unwilling

to lend against the limited assets that Lotus had available. E&Co took a small equity

position (investing $150,000) in the company allowing them to bulk purchase

imported components, expand their staff to 60 and further develop their distribution

network – no mean feat when many clients can be a two week trek from the end of the

nearest access road. Today Lotus has installed over 1000 systems, has a competent

servicing and backup program and is strongly positioned to participate in a Danish

project that will provide funds for some 30,000 PV systems throughout Nepal.

Importantly, this program is designed to progressively reduce the subsidy offered for

the purchase of the PV systems (over a five year period). Lotus acknowledges that

they have a responsibility to find ways to offset this reduction through cost savings on

the units that they supply.

In addition to this involvement with Lotus, E&Co has had a long-term involvement in

the PV industry with groups like SELCO, Soluz, NOOR and others. We see this as an

entry point into the business of rural electrification that is not capital intensive, can

engage a number of individuals at various tiers within the industry and, well structured,

can grow to have a significant impact. Others directly involved with some of these

activities will speak later during this meeting.

• In Bolivia, the installation of a 7 MW hydroelectric plant has provided not only a much

needed electricity source, but improved both the supply and quality of fresh water to

the city of Cochabamba. At a time when regulatory issues were threatening progress

on the project, E&Co provided a $250,000 loan ensuring that others funders would
3

honor their commitment to the project, which is now due for commissioning late this

year.

• In 1996, the Cooperativa Eléctrica Riberalta (CER) of Bolivia requested a $100,000

loan from E&Co to complete its 1 MW biomass generation project, fueled by Brazil

nut husks and residual scrap wood from local sawmills. Construction was underway

but substantial increases in equipment shipping costs and additional equipment left

insufficient funds to complete it. The loan from E&Co, and the support of the National

Rural Electric Cooperative Association (NRECA) from the United States, provided

the necessary financing for the project to move forward to where it is now fully

operational.

• In Viet Nam, Oxfam Quebec has worked for several years with a national agricultural

association, Vacvina, introducing a simple but effective biogas system for farmers.

Each systems costs around US$ 50. With the success of the 200-300 demonstration

systems, the challenge was how to move the program to a stage where it could have

significant impact. Vacvina has a national membership of over 250,000 and hence an

extensive network within the farming community. Following a six month period, in

which fundamental business planning issues were addressed with the organization,

E&Co provided a $60,000 loan for working capital. Within the first three months of

operations over 400 systems have been sold into 11 provinces throughout the north of

Viet Nam. A national promotional campaign is planned and Vacvina is targeting

annual sales of 3,000 systems. The systems provide an effective method of treatment

of animal wastes and, with a minimal number of animals, provide sufficient gas for

daily cooking needs. This removes the need for firewood, relieving women from the

burden of collection, and provides an effluent stream that can be safely used for

irrigation and aquaculture.

• Génesis Empresarial, a micro-credit NGO from Guatemala, received a $100,000 loan

from E&Co in 1996 to expand its credit program and introduce electric energy in rural

areas. Without this loan, for which E&Co offered long -term support (five year

repayment) and below-market rates, the fund could not expand because the transaction

costs of lending for rural off-grid PV, wind and hydro projects are too high in

Guatemala. Génesis, with 20,000 clients, was thus able to charge a lower than

commercial interest rate and to extend the repayment period from the traditional

maximum of two. In addition, the micro-lender became familiar with renewable energy

technologies and began using its training system to build human capacity for

renewables at the local level. The renewable energy systems are currently being

successfully delivered to rural villages and Génesis is being repaid as agreed.

• In China, E&Co has provided support to the Xiangtan joint venture being established

by Bergey Windpower, allowing the local manufacture of small-scale wind turbines.

Bergey’s strong market reputation and the significant wind market in China, and

elsewhere in Asia, make this an important opportunity. Even before manufacture has

begun, other potential market expansion has been identified. The Chinese government
4

clearly supports the use of wind power and it is significant that the World Bank’s PV

program in Mongolia has been expanded to include wind generation, a change needed

to match the electricity demand level already reached by many rural consumers.

• From a recent trip through Viet Nam and other parts of Asia it has become apparent

that there is a potential market for good quality micro-hydro turbines, along the lines

of the “Chinese” turbines so prevalent in Viet Nam. The challenge is to identify and

underwrite an entity that can bring this potential to market.

These are just a few examples which I hope demonstrate an approach that we believe offers

concrete solutions to what many still see as a daunting and insurmountable obstacles to effective

rural energy supplies. We could debate at some length the penetration that these projects have in

reaching the most needy– we are convinced however that without these initiatives it is unlikely

that any sustainable support system could be established for the least fortunate individuals within

these societies.

Funding Initiatives

Over the past three years, there has been significant activity targeted to the establishment of

dedicated institutions for renewable energy and energy efficiency finance. The following examples

are funding mechanisms in which E&Co has been actively involved. While we are excited about

the prospects of these mechanisms, we are also very cautious as they must succeed. A failure to

move forward would greatly harm the attraction of private capital to renewable energy and energy

efficiency enterprises.

• REEF: the Renewable Energy and Energy Efficiency Fund an investment fund

managed by a private sector team, to finance renewable energy and energy efficiency

projects that is currently fund raising. It will have three components: equity funds, debt

funds and a concessionary finance window with which it will finance on-grid

renewable energy in the 5 to 50 MW range as well as smaller off-grid renewable

energy projects and energy efficiency undertakings. The REEF’s lead sponsor and

investor is the International Finance Corporation. The Global Environment Facility has

agreed to provide a grant of up to $30 million in proportion to the size of the equity

pool that is expected to be of around $100 million. With a matching debt facility from

the IFC, the fund is expected to grown to $180 to $230 million.

• The Solar Development Corporation: the SDC is to be established as a stand-alone,

eventually commercial company providing business development and financing for

solar PV operations, particularly in rural areas. Now in development by the

International Finance Corporation, the World Bank and a number of United States

Foundations, the SDC is expected to open for business in 1999 and its financing will

be in the pre-commercial and parallel to commercial stages. The target initial

capitalization for the pilot period is $50 million of which approximately $15 million

will be for business development and $35 million for direct finance. The GEF has been

asked to provide between $10-15 million to support the market and business

development component.
5

• Energy Capital Holding Company: ECHCO provides integrated (engineering,

insurance and financing services) project financing for medium size –10 MW to

250MW- environmentally and commercially sound energy projects in Latin America

and the Caribbean. With 19 senior in-country managers in 15 LAC countries, it

enables energy projects to enjoy the funding advantages of international banking, nonbanking and capital markets previously available only to large projects.

There are a number of other institutions with interest in renewable energy financing, including

Environmental Enterprises Assistance Fund (EEAF), Triodos Bank in the Netherlands and

bilateral and multilateral programs which play an important role in their own sectors of interest.

A range of international banks have now participated in the financing of geothermal, wind and

hydro-electric power production, but typically with a focus on larger scale projects.

Where Now?

The challenge now is no longer to demonstrate what works but to achieve scale impact on the one

hand and build the distribution channels of product and finance that will electrify the 400 million

or so households world-wide that today require affordable and reliable basic energy services.

I would refer you to a paper delivered by Phil LaRocco of E&Co at a recent meeting in Quito. In

this he outlines an approach that would allow us to take our best experience and apply it to a

realistic rural electrification goal. He asks, “what would it mean if we were to set a goal to

electrify 20% of rural households in three Latin American countries such as Peru, Ecuador and

Bolivia?” Building on a model of the “MacSolar” concept, that formed the basis for the original

approach to the Solar Development Corporation, he outlines a mechanism that could establish a

US $350 million initiative to provide electrification to 20% of the rural market addressing the

needs of about 550,000 family units. The approach envisions a franchise type operation, needing

some 120 “entrepreneurs”, whereby there is a core regional support group that provides finance,

standardized product and training and assistance to allow individual entrepreneurs, or sales and

distribution points, to grow and service a base of energy end-users. It is feasible that a national

operation would develop once a number of regional enterprises are in existence.

With financing available to the "bundled" regional and national operations, the local entrepreneurs

can access finance at reasonable rates. A franchise approach allows profit to be earned at each of

the tiers of operations, with the customer benefiting through the energy services they now receive.

Conclusion

Four years of experience in financing small renewable energy projects around the world have

taught E&Co that one of the major challenges is still the need to envision energy as a

development component that must be closely interconnected with private sector initiatives. The

linkage between energy, development and finance must clearly be understood.

There are a growing number of success stories that can provide models for future development in

rural electrification. As these successes gain wider recognition there will be an increasing demand

for sustainable sources of finance. The market recognizes this need but to build the renewable
6

finance industry will require initiatives that drive order of magnitude changes in the business of

renewables. These in turn will require a focus on the link between money and the good ideas that

is often missing in this sector and the promotion and strengthening of private enterprises, a key

element in the successes to date.
Renewable Energy Finan

Matching Needs and Resou

Dr Mike Allen

E&Co

Village Power ‘98

World Bank Washington DC

6th October 1998
Introduction Introduction

) Impact of the free market model) The IPP world v rural needs) Energy - a tool of development & a cr

determinant of environmental quality

) Where can small amounts of money be

placed at critical times to create asubstantial social and environmentalbenefit?
E&Co

) Developing in country energy enterpr) High risk early stage direct investmen

$50,000 to $250,000

) Leading to next stage investment) 36 enterprises, 21 Countries, US$4.7

million
Funding Activity Funding Activity

$4,700,000 in 36 projects in 21 countries $4,700,000 in 36 projects in 21 countries

(percent by investment) (percent by investment)

Energy 

Efficiency

13%

Finance

10%

Biomass

7%

PV

35%

Biogas

6% Hydro

13%

W ind

5%

Geothermal

5%

Solar 

Thermal

6%
E&Co Projects E&Co Projects

) Lotus Energy - Nepal

X BOS manufactureX Limited capital for expansionX Challenging distribution needs/network

) Kanata Hydro - Bolivia

X Water supply and energyX Regulatory uncertainty
E&Co Projects E&Co Projects

) Riberalta Biomass - Bolivia

X Brazil nut husksX Displacing diesel generationX Increased construction costsX NRECA support

) Vacvina Biogas - Viet Nam

X Initiated through Oxfam QuebecX Move to “commercial” operationX Aim to broaden impact
E&Co Projects E&Co Projects

) Genesis Empresarial Fund - Guatemal

X Micro-credit facilityX Introduce energy loansX Assist in providing affordable funding

) Bergey Xiangtan Windpower JV - PR

X Establishment of in-country manufacturingX Demand for high quality productX Potential for expansion within China
REEF

Renewable Energy & Energy Efficiency 

Renewable Energy & Energy Efficiency 

) IFC sponsored three window fund wit

commercial and non-commercial fund

) Debt, equity and market development

funding $150-$200 million

) Privately managed funds, renewable

energy, developing countries, enterpridevelopment
“Three Window” Fund “Three Window” Fund

Three W indow

Renewable Energy Com m ercialization Fund

E quity

Fund

M arket

D evelop m ent

Assistance

F und (G EF )

F und M anagement

Company

D ebt F und

International F inance

C orporation - IF C
Solar Development Corporat

Solar Development Corporat

) Joint Foundation World Bank Initiativ) Standalone Corporation) $50 million initial capitalization) $15 million for promotion and busine

development

) $35 million for end user credit) RFP out for management group
Where Next? Where Next?

) Need to achieve scale impact) Need for effective distribution channe

X productX servicesX finance

) A concession approach) An approach in Latin America

X 20% of rural households, 550,000 homes, $3X Would require > 120 “entrepreneurs”X A franchise approach - bundled financing
Conclusions Conclusions

) Envision energy as a development

component closely interconnected witprivate sector initiatives

) Understand the linkage between energ

development and finance

) There are successful development mo

follow
Conclusions ( Conclusions (cont.)

) Need initiatives that drive order of

magnitude changes in the business ofrenewables and smaller scale electrific

) Build the links between finance and th

good ideas

) Promote and strengthen private enterp
National Renewable Energy Laboratory

Technology Options for Rur

Electricity

Larry Flowers, NREL

Village Power ‘98

Washington, DC

October 6, 1998
National Renewable Energy Laboratory

Technology/System Determinants:• application• renewable resources• economics of competing conventional

options

• physical dispersity of loads• quality of service• institutional considerations
National Renewable Energy Laboratory

Applications:

• lighting• household appliances• water pumping, potable and irrigation• water treatment/desalination• cold storage/refrigeration/ice making• health clinics• schools• power tools and village industry• agro-processing• communications
National Renewable Energy Laboratory

Resources:

• solar• wind• hydro• biomass• geothermal
National Renewable Energy Laboratory

Types of Village Power Systems

•General categories

--Individual systems - compete wit--Micro-grids - Storage is primary --Mini-grids - Diesel is primary ba--Interconnected diesels - Multiple dispatch, T&DOne region may contain a mixture 
National Renewable Energy Laboratory

SHS Cost of Energy

(Higher Wind Turbine Cost)

3

3.5

4

4.5

5

5.5

6

6.5

7

3.5 4 4.5 5 5.5 6 

Average Insolation (kWh/m2)

Average Wind Speed (m/s)

Annual Load: 91 kWh

PVBattery

Wind TurbineBattery
National Renewable Energy Laboratory

SHS Cost of Energy

(Lower Wind Turbine Cost)

3

3.5

4

4.5

5

5.5

6

6.5

7

3.5 4 4.5 5 5.5 6 

Average Insolation (kWh/m2)

Average Wind Speed (m/s)

Annual Load: 91 kWh

Wind TurbineBattery

PVBattery
National Renewable Energy Laboratory

SHS Cost of Energy

(Higher Wind Turbine Cost)

3

3.5

4

4.5

5

5.5

6

6.5

7

3.5 4 4.5 5 5.5 6 

Average Insolation (kWh/m2)

Average Wind Speed (m/s)

Annual Load: 164 kW

$0.60 $0.58$0.73 $0.58

$0.64

Wind TurbineBattery

PVBattery
National Renewable Energy Laboratory

Village

3

3.5

4

4.5

5

5.5

6

6.5

7

1 10 100 1000 

Average Daily Load (kWh/day)

Average Wind Speed (m/s) Wind Turbine Genset Battery PVGenset Battery Genset
National Renewable Energy Laboratory

Isla Quehui, Chile
National Renewable Energy Laboratory

Cost versus Grid Load

0

100,000200,000300,000400,000500,000600,000700,000800,000900,000

0 20 40 60 80 100 120 140 

Grid Load (kWh/day)

Net Present Cost ($)

Total Cost Generation Cost Distribution Cost Isolated System Cost

Isla Tranqui, Chile
National Renewable Energy Laboratory

Technology Requirements:

• economically competitive• reliable• serviceable• load matching• scaleable
National Renewable Energy Laboratory

Institutional Issues:

• ownership• operations and maintenance• financing• tariff design• metering• ability and willingness to pay• training
National Renewable Energy Laboratory

Institutional Issues (cont.):

• load growth• quality of service• economic development vs. social servi• cultural response• institutional cooperation
National Renewable Energy Laboratory

Future Technology Developments:

• lower cost solutions• more robust systems• more options:

•small-scale biomass gasification•concentrated solar-sterling engine•small scale geothermal•hybrids•mixed systems•integrated systems
National Renewable Energy Laboratory

Future Technology Developments (

• applications development• storage subsystem development• smarter controls
National Renewable Energy Laboratory

Summary: Technology and the system adependent variables; the application, thresource, the economics, and the instituaspects are the drivers.Therefore: We need to focus, not on thetechnology, but on the applications andresources and present the options that mappropriately meet the village applicatioand needs.
Village Power ’98

12:00-12:30 1998 Village Power Road Warrior Award

 •Village Power Road Warrior Address - Bud Annan
1
1

Moving Forward: A Proposal

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Bud Annan

Since the start, the promotion of renewable energy has been a difficult challenge, and as a national

priority, it has never ranked high. Beginning with the 1973 oil embargo, U. S. policymakers

attempted to assemble “windows of opportunity” to drive the development and create markets for

wind, solar, biomass and geothermal technologies. The first window was energy security

supported by research and development and tax credits. PURPA and its regulatory requirements

built an adjoining window. Opening these windows helped develop the first generation of

renewable energy technologies and create a startup U. S. industry but the windows closed without

establishing the momentum necessary for sustainability. With the decline of the energy prices in

the 1980’s and with an emphasis on free markets, no special windows were framed. However,

the industry and technology continued to make incremental improvements. The 1990’s window

constructed in 1993 attempts to integrate environmental and energy policy while maintaining a

focus on voluntary actions within free markets.

The renewable energy strategies resulting from the current policy window include:

æ Increased government research and development support.

æ A call for the removal of historical barriers.

æ Proactive cabinet level support.

æ Greater cooperation between U. S. federal agencies and between donors.

The implementation of these strategies created a drumbeat of progress. For example:

æ Renewable energy product costs have come down and conversion efficiencies have increased

resulting in a more cost competitive product particularly for remote markets.

æ The Agency for International Development reprioritized its resources and initiated a

comprehensive set of sustainable energy for development projects.
2

æ The U. S. Department of Energy cooperating with the Dutch Ministry of Assistance and the

World Bank created a special organization to promote energy efficiency and renewable energy

projects in growing economies.

æ Regional initiatives were designed and implemented in the Americas and Asia.

æ Pilot projects in household systems and village hybrids in India, China, Brazil, and South

Africa, were designed and implemented using bilateral cooperation.

The World Bank record reflects the progress, particularly in developing niche markets. From a

minimal level of effort in sustainable energy at the start of the 1990’s, it now supports thirty

projects. These projects valued at upwards to $3 Billion include $1.2B in World Bank loans and

represent the displacement of 1.6 gigawatts of fossil based generation.

The issue now is scale up to a meaningful and measurable level. It is about progress across 160

countries displacing thousands of gigawatts. However, there is cause for concern regarding the

ability to achieve scale-up under the current conditions.

First, the policy dialogue has lost its technology emphasis. In its place is the more controversial

issue of targets and timetables. The proposed goal developed in Kyoto for reducing global CO2

emissions by 7% below 1990 levels by 2010 is criticized as being unrealistic and economically

unsound. There are fears of unjustified restrictions on the economy and an adverse impact on the

operational readiness of U. S. armed forces. The lack of developing world agreement has brought

forward movement to a crawl. The Kyoto agreement and its implementing mechanisms remain

controversial.

Second, creating sustainable markets is more difficult than originally believed. The Village Power

Conferences, present information that demonstrations to reduce technical risks are not sufficient

to ensure sustainability. Roger Taylor of the National Renewable Energy Laboratory correctly

points to the institutional aspects necessary for building markets including partnering,

maintenance, cost recovery, development coordination, planning tools, economics, language and

culture. There is also new information that confirms the importance of commercial replication
3

and attractive long term financing in achieving successful market development. Further

complicating sustainability is that as demonstrations move from household systems to village and

even grid tied systems, the investment and risks go up. The Brazil village hybrid indicates an

investment upward from $200,000 is needed. In order for the village systems to be a viable

business, it is estimated that a developer would need a market of 15 to 20 such systems in a tight

geographical area in order to support the necessary repair and maintenance infrastructure. Finally,

the new complexities of the energy market worldwide created by privatization and restructuring

coupled with the large risks of new technology in new institutional settings are influencing the

ability to create sustainability. Before the customer was the local utility, but with privatization

defining the customer becomes less clear.

The changes in the renewable industry worldwide have added a third difficulty. Manufacturers

have become commodity suppliers, pushing system integration as close to the end user as

possible. This segment of the industry is very dispersed, generally unorganized, and lacks

resources for market development. Thus, an industry already undercapitalized has little incentive

to expend corporate resources and time in demonstrating technology, developing new markets

and underwriting the development of distributor and system integration businesses in high-risk

economies. The industry now no longer forces programs to happen. It has allowed itself to wait

for programs to be designed by others.

The biggest concern regarding the ability to move forward with scale-up including the ability to

deal effectively with these difficulties is the lack of leadership both public and private. The lack of

agreement between administration and Congressional officials over budget, the importance of

environmental issues, and the role of the federal government has created a polarized and cautions

policy environment. At best, it is a shared leadership too willing to compromise. The renewable

energy industry is short on resources, lacks a collective drive, and has become only marginally

effective. Bechtel, Battelle, and the Midwest Research Institute recently awarded the operation

and management of the National Energy Laboratory, is well positioned to assist in building

bridges between the public and private sectors. Nevertheless, its capability for leadership is tied
4

to federal actions. Non-governmental organizations remain an active catalyst for sustainable

development, provide the analytical, and project underpinnings for an energized leadership.

If the problems are our making, then we can generate the solutions, and we must act quickly. We

cannot afford to mark time because world economic development does not stand still and every

energy decision from building buildings to power plant construction is a 30- to 50-year decision.

Old power plants need to be retired not relicensed. If increases in fuel prices through tax

increases are politically unthinkable then policies must turn to regulation, technology support, and

a new value system. These elements when combined with electricity restructuring and concerns

about the environment frame a new window of opportunity.

First, we reestablish industry leadership. However, the new leadership is much different from the

leadership of the early 1990’s. It is a new membership of energy technology providers and

technology users. These industry leaders not only recognize their environmental responsibilities

but also recognize the market potential of growing economies.—the need for energy that provides

access to new communication, learning and entertainment products and services. This new

industry leadership seeks engineering solutions and new opportunities not excuses. The new

leadership has a sense of urgency and a commitment to put into place policies, strategies, and

projects so as to have measurable impact by 2010.

The first priority for this new industry leadership is to bring the policy focus back to technology

development and its deployment. It seeks to raise the priority of renewable energy as a matter of

national policy. Working with the Administration, Congress, multilateral financing agencies and

nonprofit organizations, the leadership works to reestablish trust and a cooperative attitude in

finding a common baseline and commitment for sustainable technology based growth. There is

new fresh information to support this new dialogue. It includes the comprehensives report

submitted by the President’s Committee of Advisors on Science and Technology entitled “Federal

Energy Research and Development for the challenges of the 21st Century”, the study produced by

the eleven National Laboratories entitled “ Technology Opportunities to Reduce U. S.

Greenhouse Gas Emissions”, the new information produced by the Village Power Workshop on
5

critical elements for sustainable success, as well as the new realities of today’s energy

marketplace.

Next, the leadership establishes a dialogue with the leaders of national and international agencies

to reach a consensus on a set of sensible strategies. The strategies flow from the 1990’s drumbeat

of progress but with a greater attention to incentives and creating preferences for renewable

energy. Strategies focused on fundamentals that unlock value are needed. They include:

æ A thirty-percent increase in government funding for technology development and deployment.

In addition, fiscal incentives in support of state restructuring efforts and greater support for

bilateral cooperation are needed.

æ Putting market forces to work by changing the economic signals. Tradable credits appear to

be a promising new dynamic market force. Every renewable installation should carry with it

tradable credits that has value to the energy industry as well as to governments.

æ Designing and implementing a worldwide initiative on renewable energy based rural

electrification that moves beyond household systems. The demonstration of household

systems is a success. Attention must now turn to policies that replicate the success and move

on to energy for productive uses—communication and education and job creation.

æ Building Capacity. There are many models that show promise in building in country capacity.

The Winrock Foundation is one. There needs to be a strong long lasting commitment to build

capacity at all level of the economic and political system of growing economies.

æ Enhancing technology transfer. Governments of growing economies need to strengthen

intellectual property laws, relax tariffs on imported equipment’s, and implement tax policies

that stimulate investment while at the same time create performance standards. Long term

technology transfer is effective if there is a movement away from grants and gifts. The private

sector demands transparent and fair standards for competitive investment and financial

markets that live up to international standards.

The third and final element of the new leadership strategy is to create a sense of urgency. Large

scaled-up projects that are not government selected projects or politically connected ventures are

a good way to focus. Industry needs to create ten such fast track projects. It should also
6

spearhead the creation of an international team of technology and business experts to review in

place projects. Development oriented agencies desperately need a set of best practices, legal

frameworks, and financing strategies that allows the rural poor access to energy. Finally, the

leadership should promote the successes and fix the failures.

We are fortunate to see corporations responding to this leadership challenge. British Petroleum

with its announced strategy to cut greenhouse gas emissions by 10% of their 1990 levels by 2010

has “set up a whole new level of expectations for other corporations.” Shell has joined with its

announced effort to bring solar-based electricity to 50,000 homes in South Africa. Arizona’s

Corporation Commission is leading with its mandated solar portfolio standard as a critical element

of the electricity restructuring to take effect January 1, 1999. Northern States Power joins the

leadership with the world’s largest single wind generation facility--enough electricity to provide

for the residential needs of about 43,000 Minnesota households. The Village Power Conference

will create other world leaders. These leaders challenge conventional thinking and change the

vocabulary on the way we explain progress. They educate us and create a new sense of

opportunity. It is the start.
Village Power ’98

14:00-16:00 Organizing for Scaling-up Electricity Access;

Models for Sustainable Energy Delivery

- Chair, Karl Jechoutek,World Bank

•Key Issues in Scaling-up Rural Electricity Access

- Arun Sanghvi,World Bank

•Scaling-up Rural Photovoltaic Enterprises in Emerging Market

Economies: The Case of China

- Noureddine Berrah,World Bank

•Mexico: Achieving Universal Coverage

- Carlos Gonzáles, CFE, Mexico

•Brazil Prodeem Program – Eugenio Mancini, National

Department of Energy Development (DNDE), Brazil

•South Africa ESKOM Renewable Energy Experience

 - Thulani Gcbashe, ESKOM

•Solar Electric Energy Delivery - A Business Model

- Richard Hansen, SOLUZ, Inc.
Key Issues in Scaling-Up Electr

Access

Arun P. Sanghvi

Thematic Group Leader Rural and Renewable E

The World Bank

Village Power ‘98 Conference

October 6-8, 1998

Washington, DC.
The Challenge of Inclusive Developme

P Worldwide, over 2 billion people

X Do not have access to electricity

X Rely on traditional biomass fuels and use them in

inefficient/unsustainable ways

P Most people without modern energy are ruralP “Challenge of inclusion”--reduce poverty, improve 

of life, reduce disparities--key development challenour time

P In South Asia and Africa, we are loosing the race
The Challenge of Scale and Pace:Ethio

P Household access under 5 percent--that too, many 

areas

P New connections rate for rural households (about 

million households) is around 5,000/year

P At this rate......“We must look at these issues, with a sense of urgenc

sense of scale”
The Challenge of Scale and Pace: Bangla

P Household access overall about 15 percent--in rura

about 10 percent

P New connections rate for rural households

(about 15 million households) is around 120,000/y

P At this rate....“We can continue business as usual, focusing on a pro

here, a project there, all too often behind the povercurve.”
Challenge: Renewable Energy Is Underut

P Many small-scale renewable energy technologies a

X cost competitive, particularly with environmental cost coX near-ready for wide-spread use in developing countries

P Yet, share of renewable energy in energy supplies 

small.
Key Issues

Starting on the Right Foot--Getting the Problem Defin

Right

P Introducing an environmentally friendly technologyP RET market developmentP Addressing global externalitiesP Supporting inclusive development through scaling-up ele

access and facilitating non-farm income generation

+ Implications for strategy are quite different depend

which land whose problem we trying to solve.
Key Issues

Multiple Supply Options Necessary to Expan

2 billion Unserved Today

Decentralized mLeast cost deliveis grid-based REFor this segmenmore basic needbillion)Individual suppsystems

• Don’t count grid-base RE out• Diesels will and should continue to have role
Key Issues

Private Sector Participation is Essential, Y

P Technology specific barriers

X lack of technological familiarityX poor quality of resource information

P Energy sector specific barriers

X lack of regulatory and enabling environmentX misdirected Government policies/programsX market prices of competing fuels are often subsidiz

do not reflect externality costs

P Economy-wide barriers

X tariffs, dutiesX poorly functioning local capital markets, financial

institutions, legal system
Key Issues

Lowering the Barriers to Private Sector

P Policy Changes

X Provide “public good” resource informationX Level playing field through tariff, policy and regulatory cX Shift government agencies form market maker/technolog

distributors to market enablers
Key Issues

Lowering the Barriers to Private Sector (cont

P Lower key costs and risks of private developers, an

suppliers of capital

X pre-investment costsX incremental transaction costsX Facilitate technical and social intermediation
Key Issues

Universal Access or Targeted Access

P Can we afford to go from one extreme today--little 

access--to the other extreme of universal access?

X Depends on starting point and political commitment

P In most instances “electricity for all”is not feasible 

foreseeable future on account of the subsidy requi

P The silver lining and one way out is to recognize th

affordability varies substantially across the excludepopulation
Key Issues

Even When Expanding Access is Economically 

Financial Viability is Not Assured

P Within the target market segments it will be necess

expand access to end-user credit and term-financinlocal service funders by opening low cost and low (efficient) financial intermediation channels

P Promote judicious use of GEF grants to lower first 

obtaining access

P New financing mechanisms that place a market va

carbon avoided as well as trading mechanisms that premium price of renewables maybe on the way
Key Issues

Facilitating Non-Farm Income to Increase the Benefit

is Key

P Introduction of electricity, even in areas with poten

increased productive uses off-farm, does not necesand quickly catalyze such benefits

P Programs aimed at scaling up rural electricity acce

households should incorporate provisions to increacapacity of potential off-takers electricity for produuses.
Key Issues

The Role of Non-Conventional Stake-holde

Delivery Agents in Expanding Rural Electrici

P Continued reliance on urban-centric contributions 

get the job done in most instances

P We must find ways to attract local rural-centric

entrepreneurs and other big stake-holders andintermediaries such as NGOs to help us design andimplement our program

X Social and technical intermediation are essential

P Upstream capacity building is a key to make this h

X A technical, financial skills, business, management, mark

community relations
Conclusions

 “ We have to ask ourselves not just whether 

that project has worked, but the much largquestion-What development impact have catalyzed?”
Conclusions (continued)

Think Fundamentally Radically and With a Lon

Shift Mind-Set From ToP Anecdotes Thinking Big Picture and StrategicallyP Demos/Pilots and little “activities” Mainstreaming for scale up and 

development impact

P Solving our problems Solving their problemsP Projects/Transactions Country, Division Programs; High 

Selectivity; Establishing a Few Good Practice Programs foand Develop Upon

P Government as market makers Governments as market enable
Conclusions (continued)

Need a Radical Shift in Mind-sets

Shift Mind-Set From ToP Technology/money dumping Develop efficient and 

sustainable delivery mechanisms and other by elements required for a functional market

P Technical assistance Rural partnerships between the 

various donors agencies and multilateral institutions

P Road Warrior and Crusaders More aggressive and upstream 

capacity building, but coordinated with a big impact on rural access investment program

P Road Warrior and Crusaders - a very fertile ground for 

partnerships between donor agencies, and the World Bank.

Unleashing local armies of 

entrepreneurs, NGOs, and other local intermediaries
Getting a Feel For How Fast Can We Achieve Sc

For Some Segments of the Excluded Populat

An Example-The Case of SHS Market PenetrationP Overall world market size today: 50+ million houP Market Scale Today: About 150,000 units per yeaP Number of years for First Million: 8-10 yearsP Number of years for Ten Million: 30+
Eskom’s Renewable Energy Experience

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Thulani S. Gcabashe

1. BACKGROUND

Eskom is the largest electricity utility in Africa, generating approximately 60% of the

electricity consumed on the continent and having installed capacity of some 39 000 Mw.

Up until the early 1990’s, its distribution business had operated largely as a wholesaler of

electricity supplying in bulk to municipal distributors and large industrial customers. Its

direct domestic customers, who reside mainly outside proclaimed urban areas amounted to

half a million in 1992. This changed dramatically from 1994 when Eskom, along with

other municipal distributors, agreed to electrify 2.5 million homes by the year 2000 as part

of the Government’s Reconstruction and Development Programme. This coincided with

the ushering in of the new democracy whereby underdeveloped areas became the focus for

development investment. At this stage, 65% of households did not have access to

electricity. These households were largely Black, and lived in peri-urban and informal

settlements, as well as rural areas. The programme sought to reduce this to 30% by the

year 2000. Although the electrification programme envisaged the use of both grid and nongrid technologies, the entire residential electrification programme has been off grid

electricity. The main reasons for grid electrification were firstly, that there already existed

a well established distribution network in most parts of the country; secondly the relative

costs of non-grid technologies were considered prohibitive; and that grid electrification was

the more effective way to bring about rapid electrification.

2. THE ELECTRIFICATION PROGRAMME

The electrification programme which began in 1994 was estimated to cost a total of $2

billion over a 5 year period, with investment peaking at $333 million. Some of the

underlying assumptions of the programme were:

• The programme would be financially viable and sustainable.

• Project selection would be transparent and involve the relevant role players.

• Rural electrification would be a focus area.

• Equity would be maintained between the various area to be electrified.

Eskom committed to electrify 1,75 million households out of the total programme of 2,5

million. The programme has thus far met the targets and will meet the total obligation by

the year 2000. As a result of what has been done so far, for the first time in the history of

South Africa there are more houses with electricity than those without.
2

By end of 1997, approximately 59% of homes had access to electricity. Between 1994 and

1997, the percentage of rural people with access to electricity rose from 12% to

approximately 27%, an increase of 15% over 2 years. In urban areas, the percentage of

people with access to electricity by the end of 1996 was around 79%. As with many such

endeavors, it quickly became apparent that the assumptions regarding financial viability

would come into question. This led to a number of supply and demand side interventions

that were to see the cost per connection reduced from $711 in 1994 to $530 in 1998.

(Projected to $465 in 1998).

This has been achieved in spite of the fact that the programme has been moving into less

densely populated areas for some time now. This has been achieved by technology

optimisation in the following way:

a) Network designs were optimised to lower load requirements. Initially they were based

on 60amps per point of supply and an after diversity maximum demand (ADMD) of

1,5kVa. The standard is now based on 20amps per point of supply and an ADMD of

0,4kVa. Upgradeability is built into the design philosophy.

b) More appropriate technology has been applied such as single wire earth return and

single phase medium and low voltage systems.

c) Other design improvements related to standardisation and efficiency initiatives. Ratios

and indicators were developed to assist in the process of capital release. For example

number of structures per kilometre per conductor type, transformers per kilometre and

number of connections per transformer.

To further enhance the viability of the electrification programme Eskom embarked on a

number of demand side initiatives.

Through interaction with the customer and measurement of consumption patterns Eskom

developed a basket of products to ensure that the areas being electrified have a higher takeup rate and therefore reduce the cost per connection through more efficient utilisation of the

reticulation network. These products include a 60amp and 2.5amp option in addition to the

standard 20Amp option.

Various marketing initiatives to create electricity awareness and demand have also been

initiated. These include talks at schools and social institutions on the safe and efficient use

of electricity, sponsorship of sporting and cultural events, and the distribution of

appropriate literature to customers.

Electricity supply to the various market segments has been branded to enable a more

focused interaction between Eskom and its customers.

Through this programme, Eskom has contributed to achieving critical mass in terms of

access to electricity. Although overall electrification rates of 70-80% will be attained
3

through this programme, it is unlikely that more than 30% electrification in rural areas will

be achieved through grid-electrification alone.

3. ESKOM’S INVOLVEMENT IN NON-GRID ELECTRIFICATION

Eskom’s contribution to the development of non-grid energy provision has been in three

main areas: through contribution to the development of national policies for energy and

electrification, initiation of the Energisation Programme which develops and implements

options for meeting customer’s energy requirements in conjunction with other energy

suppliers and in implementing the non-grid Schools Electrification Programme.

3.1 NON-GRID SCHOOL ELECTRICIATION PROGRAMME

 The Non-Grid School electrification programme grew from a commitment to the South

African Government to manage the electrification of some 16 000 remote schools which

would not be grid electrified in the medium term. This programme was to utilise funding

from international donors and other government sources who were concerned about

developing the country.

Eskom has developed a number of procedures and activities in order to make this

programme a success. This has included the following:

• Equipment standard specifications.

• Installation procedures

• Commissioning procedures and test equipment

• Component evaluation facilities

• Training programmes for first time installation contractors

• Business training programmes for new contractors

• Evaluation and feedback processes.

This programme is specifically aimed at bringing the benefits of effective educational

opportunities to those who previously had to rely on very rudimentary teaching aids. Each

school is provided with:-

• Adequate lighting for four hours a day for 3 of the classrooms, the staff room and the

headmaster’s office.

• 220V AC power for 1 to 2 hours a day to run television, video recorder, overhead

projector and computer.

The direct benefits to approximately 400 pupils per school are realised immediately, while

the longer term benefits from adult education programmes like literacy training, business

skills and upliftment of the community lifestyle will impact many more people.
4

An integral part of the programme is the employment of local contractors who are given

installation training and the employment of local labour for installation. Through this

process jobs are created in the community, as well as a sense of ownership developed.

Systems installed are designed for a lifespan of 15 years, with the batteries having to be

replaced at regular intervals.

While a number of issues still need to be resolved around the optimum utilisation of these

systems by the pupils and teachers a great level of commitment is being displayed by the

Provincial Department of Education to the modernisation of all aspects of schooling in the

shortest possible time. The one great pity of this exercise is that very little international

donor support has been forthcoming and only 1 300 schools have been electrified to date.

3.2 ENERGIZATION PROGRAMME

“Engergization SA” is essentially the matching of energy supply side resources with

(community) energy demand requirements and optimising to form a combined energy

offering which can provide economic growth opportunity for long term viability. As it

involves balanced energy solutions, this requires the optimal combination of different energy

sources which takes into account their efficiencies, availability and costs. LPGas, for

example, is an excellent energy source for thermal applications, such as cooking, while

electricity has the competitive advantage in the applications of lighting, entertainment,

refrigeration and the running of motors. Energization is therefore a best combination of

energy sources to ensure an efficient, cost effective energy package that is available in the

community and is within their economic means.

The energization process comprises a number of elements, which can vary depending on the

energy resources available and the circumstances of the community.

The start-up product offering consists of LP Gas hardware and a PV system:

• 2 of 4,5kg LP Gas cylinders, filled,

• 2-plate gas stove with connections,

• 49W PV panel, roof or pole mounted,

• Battery with regulator,

• 2 lights of 9W,

• Outlets for a black and white television set and radio (depending on product

compatibility)

It is expected that the above system would be used in 95% of the cases, however, there are

larger systems to take care of the needs of the customer requiring a more sophisticated

system.

The capital to purchase the system is either payable in cash or financed over a period. In the

current pilots, Hire Purchase financing is available.
5

As the Energization offering is seen as one package, one flat rate payment per month will be

made and collected by the Energy Agent. For this, the Energy Agent is paid a collection fee.

The payment pays off the hardware and entitles the customer to refill one bottle with LP Gas.

The charge for extra gas refills will be determined by the Energy Agent (as recommended by

LP Gas supplier) and collected on a cash-on-delivery basis.

The selection and training of the Energy Agent is of utmost importance, as the Energy Agent

will play a pivotal role sustaining the Energization process.

The agent will be required to offer a full service to the community in terms of their energy

needs. This includes:

• The installation of the PV panels,

• Their panels,

• The sale of the LP Gas equipment

• The sale of additional gas and

• The collection of revenues

For each of these duties he will receive an appropriate fee. As part of his customer service

and satisfaction programme, he will also provide energy advice to customers as to the most

effective use of their energy package.

3.3 JOINT VENTURE PROJECT FOR RESIDENTIAL NON-GRID

 ELECTRIFICATION

Another development is that Eskom and Shell are in the process of establishing a joint

venture agreement whereby a fee for service programme will be implemented in a number of

different rural areas. This programme is believed to be a world first on the scale involved

and will provide lighting, communication, cooking and heating.

The customer will not need to buy the technology, as the hardware will remain the

responsibility of the Joint Venture company, while the customer only pays on a monthly

basis for the level of service installed and received.

6 000 installations are planned in phase one to extend to 50 000 if all evaluation points are

met. This programme includes newly developed security technology and electronic

prepayment devices. The emphasis in the implementation process is on empowerment of

local black organisations and on full commercial sustainability.

3.4 OTHER PROJECTS

Eskom is further involved in economic evaluation and technical assessment of larger scale

renewable programmes within the context of the South African climatic and economic

environment, included in these are:-
6

• Grid connected wind farm (4.8Mw)

• Solar thermal electricity generation (200Mw)

• Medium size hybrid systems for agricultural application

• Biomass electricity generation

In order to have a reliable foundation on which to make long term decisions, a national

renewable energy resource database and evaluation platform is being developed in

conjunction with other interested stakeholders in the country.

To conclude, our country is at a stage where viable grid electrification for rural areas is

approaching its full potential. We need to continue to pursue renewable energy

technologies in order to continue energization in rural areas. I have no doubt that the

experiences of other nations grappling with similar problems will assist us in this endeavour.
ESKOM

41

THULANI S GCABASHEESKOM

ESKOM’S RENEWABLE ENERGY

 EXPERIENCE

VILLAGWashingOctober 
ESKOM

51

• Vertically integrated national Utility• 39 000 Employees• Nominal generating capacity 38 497 MW• National Transmission Grid integrated with South

Power Pool (SAPP)

• 1997 Sales 172 000 GWH (4% Growth)

BACKGROUND ON ESKOM
ESKOM

61

VISION• To provide the world’s lowest-cost electricity f

and prosperity

MISSION• To satisfy all our customers’ electricity needs 

cost-effective way

STRATEGY• To develop ESKOM as a business that maximi

value of its products and services to South Af

BACKGROUND ON ESKOM (CONTINUE
ESKOM

71

CUSTOMER ELECTRIFICATION

PROGRAMME

1991 1992 1993 1994 1995 1996

0

50,000

100,000150,000200,000250,000300,000350,000

1991 1992 1993 1994 1995 1996

Customer Electrification 

1991 1992 1993 1994 1995 1996 1997 30,000 202,877 211,798 254,383 313,179 307,047 274,345 
ESKOM

81

C O ST PE R C O N N E C TIO N 1994 - 1999 

529

711

562

689

570

653

539 576 530

497 

0

100200300400500600700800

U S $

1994 1995 1996 1997 1998 199
ESKOM

91

1985 1987 1989 1991 1993 1995 2000

0

500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

1985 1987 1989 1991 1993 1995 2000

Growth in Customer Numbers

Growth in Customer Numb
ESKOM

:1

1991 1992 1993 1994 1995 1996 ITD 

Electrification Customers 30,000 202,877 211,798 254,383 313,179 307,047 1

Customer Electrification Progra
ESKOM

;1

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 

0

20,00040,00060,00080,000

100,000120,000140,000160,000180,000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 

Growth in T otal Sales 

Growth in Total Sale
ESKOM

<1

CUSTOMER SERVICE BUSINE

ARCHITECTURE

• CHANGE DRIVERS

* Change from wholesaler to retailer* Rapid growth and change in customer  mix* Systems antiquated and not flexible* Business approach not customer focused* Positioning for changes in the Electricity Distributio

Industry
ESKOM

431

• Standard and uniform customer service• Distribution Business to be process orientated• Transformation Objectives

* Improve customer satisfaction* Reduce service transaction cost per custom* Adhere to National Electricity Regulator’s Standards

STRATEGIC ALIGNME
ESKOM

441

• August 1993 development team set up - define• Understanding the customer

* 101 service requirements* Service standards per customer segment* Service charter

CUSTOMER RELATIONS PROGR
ESKOM

451

• Key value chains defined

Customer orders

* Fault management* Account payments* Customer queries

• Benchmarking against overseas utilities

CUSTOMER RELATIONS

PROGRAMME
ESKOM

461

• BUSINESS ARCHITECTURE• Architecture Building Blocks

* Corporate Head Office* Regional Head Office* Customer Care Centre (call centre,  operations, processing centre)* Service Representatives* Customer Advisors* Customer Executives

Sales Persons

CUSTOMER RELATIONS PROGRAM
ESKOM

471

• PROGRESS TO DATE

* Front line practices standardised (3 000 employees)* Completed Customer Interface Training)* 140 Managers completed Customer Leaders Programme* Definition and documentation of Managem process* Customer Service System with 30 applicati 450 functions in near completion

CUSTOMER RELATIONS PROGRAMME
ESKOM

481

• Service culture• Payment for services• National Electricity Regulator requireme

FUTURE CUSTOMER SERVICE ISSU
SOLUZ Solar Electric Energ

Village Power ‘98

Solar Electric Energy Delivery

A Business Model

Richard D. Hansen

SOLUZ, Inc.

October 6, 1998
SOLUZ Solar Electric Energ

Overview

• The need• A business model (SOLUZ experien

Customer ⇒ Technician ⇒ SSC ⇒ Country O

• Scale-up potential» Market» Investment Capital» Operational Capacity
SOLUZ Solar Electric Energ

Global Household Need

• 2 billion people without access• 400 million households• 10% coverage is 40 million HHs• 10,000 technicians working 10 years
SOLUZ Solar Electric Energ

Country Characteristic

for Soluz Model

• Geographical area/population density• Ability to pay in rural areas• Government attention to rural electrificat• Capability of commercial sector• Programs of the NGO sector• Degree/quality of market conditioning
SOLUZ Solar Electric Energ

Market Overview

Dominican Republic

• Population = 7.5 million• Area = 45,000 sq. km.• Rural population = 3 million = 65/sq. km• 30% electrified by national grid• ~ 400,000 non-electrified households• ~ 8,000 SHSs = 2% penetration
SOLUZ Solar Electric Energ

SHS History

Dominican Republic

1984 1 demonstration SHS1985-87 Market seeded with 100 SHS1988 Enersol tech./micro training pr

import duties reduced

1989-93 10 micros ⇒ 2000 SHS1993 Total 4000 HHs = 1% penetrat1994 SOLUZ begins renting SHS
SOLUZ Solar Electric Energ

Existing Slide

• Potential for PV
SOLUZ Solar Electric Energ

Existing Slide

• Energy Expenditures
SOLUZ Solar Electric Energ

Capital Requirements

Dominican Republic

Households Capital200,000 (50%) $100 Million40,000 (10%) $20 Million5,000 $2.5 Million
SOLUZ Solar Electric Energ

SOLUZ SEEDTM

(Solar Electric Energy Delive

• PV rental or “fee-for-service”• Target 50% of local population• Scale-up to min. 5,000-customer bloNear-Term Business Objective: Soluz Domi

is building a commercial 5,000-home PV for-service business operation to satisfy thelectrical energy needs of rural household
SOLUZ Solar Electric Energ

Existing Slide

• Map of DR
SOLUZ Solar Electric Energ

Photos of systems

(Discuss system sizes, fee structure
SOLUZ Solar Electric Energ

Technician Service/Collect

Structure

C ustom er 1C ustom er 2C ustom er 3C ustom er 4

... Customer 50

C oll. Point

1

C oll. Point

2

C oll. Point

3

Coll. Point

4

... C 

Tech.

Territory 1
SOLUZ Solar Electric Energ

Photo Slide

• Photo of Technician (Jose “Chepe” M
SOLUZ Solar Electric Energ

5,000-Customer

Business Unit

Custom ers

C ollection Points

Tech.

Territory 1

Tech.

Territory 2

Tech.

Territory 3

Tech.

Territory 4

Te

SSC

Operation
SOLUZ Solar Electric Energ

5,000-Customer Business U

(2 MW Equivalent)

Financing Requirements:

Equity Debt Off-Balance Sheet $500K $1,000K $1,000K $2

Revenues:

$1,000,000 annual (90% fee-for-service)
SOLUZ Solar Electric Energ

SEEDTM Progression

Dominican Republic

0

200400600800

1,0001,2001,4001,6001,8002,000

1993 1994 1995 1996 1997 1998

CustCapi
SOLUZ Solar Electric Energ

DR Transactions ($1.275M

Oct 93 $100k RFDec 93 $200k RFJun 95 $200k EEAF(AApr 97 $75k EEAF(IJul & Sep 97 $75k & $75k E&Co (Sep 97 $150k CalvertMar 98-Oct 98 $400k SunLigh
SOLUZ Solar Electric Energ

Replication

Honduras

Soluz D om inicana, S.A . Soluz Honduras, S

SO LU Z, Inc.

Year End Custo

Yr 1 50

Yr 2 2,50Yr 3 5,00
SOLUZ Solar Electric Energ

Business Expansion

to 50,000 Customers

SSC

# 1

SSC

# 2

SSC

# 3

SSC

# 4

SSC

# 5

Central O ffice
SOLUZ Solar Electric Energ

50,000-Customer Business 

(20 MW Equivalent)

Financing Requirements:

Equity Debt Off-Balance Sheet $5M $10M $10M 

Revenues:

$10,000,000 annual (90% fee-for-service)
SOLUZ Solar Electric Energ

Scale-Up Potential:

Parameters for Growth

• Market/Customer Demand• Investment Capital• Operational Capacity
SOLUZ Solar Electric Energ

Market-Customer Deman

• Willingness and capacity to pay• Customer Payment Plans

– Cash– Credit– Fee-for Service

• Concentrated Demand
SOLUZ Solar Electric Energ

Investment Capital

• Standard issues• Rural PV = new business activity• Limited operational track record• Potentially lean profit margins• Uncertainty of sector restructuring

– Private or government leadership?– Competitive PV market or rural conces

• High transaction costs
SOLUZ Solar Electric Energ

Operational Capacity

• Need to train rural technicians• Limits to rate of organizing/mobilizin

human resources
SOLUZ Solar Electric Energ

The Next Step?

Country 1

100-200,000

Custom ers

Country 2

100-200,000

Custom ers

... Country 

100-200,00

Custom er

ABC GLOBAL SOLAR, Inc.

1,000,000 Custom ers

($500M PV Assets)
Village Power ’98

16:30-18:00 Panel Discussion: Roles and Consequences of

Bilateral Donor Programs

- Chair, Matthew Mendis, AED

•USA - Jeff Seabright, USAID

•Netherlands - Paul Hassing, DGIS

•International Energy Agency - Bernard McNelis, IT Power

•United Kingdom – Clive Caffall, DFID
USAID and Renewable Ene

A Continuing Commitmen

International Development 

the Global Environmen

Presentation to Village Power ‘98

Jeff Seabright

Director, Office of Energy, Global Bur

U.S. Agency for International Developm

October 6, 1998
The U.S. Agency for Internationa

Development (USAID)

• USAID is the foreign assistance agency of the U.

Government, with 0.5% of the federal budget

• Programs in 84 countries for environmentally-sus

economic development

• USAID in-country offices determine the portfolio a

programs in areas including education, health, agforestry, energy, micro-credit, democracy buildingplanning, etc.
USAID Center for the Environme

(Washington, DC)

• Mandate: Provide leadership on global environm

issues and assist USAID field offices in programdevelopment, implementation, and evaluation

• Three Areas: Energy, Natural Resources, Urba• Office of Energy: Renewable Energy, Energy

Efficiency, Clean Energy Technologies
Energy and Development - the Mis

Nexus for 2 billion people

• Two billion people lack access to electricity and c• Electricity alone does not lead to economic devel

but development impeded without it.

• Renewable energy systems are often the preferre

for off-grid development.

• Changing relationship between private and public 

poses new challenges and new opportunities
Characteristics of Rural Markets

• Geographically dispersed - high installation and

maintenance costs

• Low volume usage concentrated in evening hou• Willingness and ability to pay• Poor access to finance
Rural Electrification Before Privatizat

• Responsibility of government• Focus on grid extension• Operating costs assumed by utilities• Expansion of service and supply of power limite

availability of funds
Rural Electrification Post Privatizati

• Focus on least cost approaches• Limited interest from private sector• Government influence through regulation• Role of subsidies?
Financial Crisis: Implications for Renew

Energy

• Accelerate sector reform, but constrain capital f• Higher energy tariffs likely• Tendency to focus on urban/industrial rather tha

policy, but ...

• ... still an opportunity to rethink fundamentals
Needed: Market-Based Solution

• Making markets work is key to sustainability a

replicability.

– Active engagement of local stakeholders is

essential for project sustainability.

– Commercial viability essential for replicabi

• Grants/concessional finance distort markets a

impede development of sustainable solutions.

• “Pump priming” and market opening initiatives 

needed

• Focus on transparent subsidies (where neede

meet social goals in partnership with private s
• USAID’s Renewable Energy Program

• What: Accelerate market penetration of commtechnology• How: Policy reform, institutional capacity build

information dissemination, pre-investment suppotechnical assistance, and training• Where: Mexico, Central America, Dominican R

Brazil, India, Indonesia, Philippines, South Africa 
USAID’s Principal Collaborators 

Renewable Energy

• Winrock International• US DOE• US/ECRE and trade associations, including SEI• Sandia National Laboratories• National Renewable Energy Laboratory• National Rural Electric Cooperative Association• Environmental Enterprises Assistance Fund• The World Bank• Inter-American Development Bank
• USAID assisted World Bank in designing major s

packages for Indonesia and Sri Lanka, and providof in-country PV distributors

• Through Winrock International, USAID is assistin

Bank in preparing a loan package for rural uses orenewable energy for Brazil

• Provided funding assistance to the IFC for develo

the business plan for the Renewable Energy and Efficiency Fund (REEF)

USAID/World Bank Collaborati
Global Climate Change Commitme

Implications for Renewables

• USAID implementing President Clinton’s

commitment of $1 billion over 5 years for globclimate change (GCC) programs.

• Clean Development Mechanism (CDM) offer

source of support for renewable projects,but show carbon offsets.

• Climate Technology Cooperation pilot progra

another opportunity to focus on renewable eninitiatives.
U.S. Agency for International Development

Washington, D.C. 20523

http://www.info.usaid.gov

climate@usaid.gov

For further information on USAID energy programs, 

contact: Jeff Seabright (jseabright@usaid.gov)

202-712-1750 202-216-3230 (fax)
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Power IEA PVPS TASK IX Co-operation with 

IEA International Energy Agency

Photovoltaic Power Systems Program

Task IX

DEPLOYMENT OF PHOTOVOLTAIC TECH

CO-OPERATION WITH DEVELOPING CO

presentation by

Bernard McNelis

Village Power ‘98

World Bank 6-8 October 1998
Power IEA PVPS TASK IX Co-operation with 

OBJECTIVE

To increase the overall rate of successful

deployment of PV systems in developing

countries, through increased co-operation a

information exchange between bilateral and

multilateral donors and the IEA PVPS

Programme.
Power IEA PVPS TASK IX Co-operation with 

PVPS Participating Countri

•Australia•Austria•Canada•Denmark•European Union•Finland•France•Germany•Israel•Italy

•Japan•Korea•Mexico•The Netherland•Portugal•Spain•Sweden•Switzerland•United Kingdom•United States
Power IEA PVPS TASK IX Co-operation with 

T otal: 125.8 M Wp

Non-PVPS participants

8%

PVPS participants92%

World PV Manufacture: is in PVPS

Participating Countries
Power IEA PVPS TASK IX Co-operation with 

UK 3.1 Canada 2.4

Ja

USA 9.5

Italy 2.9

Germany 6.7

France 8.0

AID SPENDING BY THE 7 MAJOR PLA

(AVERAGE FOR THE LAST % YEARS) ($
Power IEA PVPS TASK IX Co-operation with 

PVPS Tasks

I - Information ExchangeII - Performance data-baseIII - Stand-alone systemsV - Grid interconnectionVI - Large-scale (multi-MWp)VII - Building integrationVIII - Very large-scale (multi-GWp)

IX - Co-operation with Developing 

Co-operation with Developing 
Power IEA PVPS TASK IX Co-operation with 

Task IX Workshop, IT Power 1-2 Oc

•Australia•Canada•Denmark•France•Germany•Italy

•Japan•Sweden•Switzerland•The Netherlan•UK•USA
Power IEA PVPS TASK IX Co-operation with 

RATIONALE

• Enormous potential market exists, does not require dramatic P• Can be developed into a sustainable commercial market and a

deliver basic services, health care, water supply, contribute to 

• 92% of PV production is in PVPS member countries. Compan

countries will be major beneficiaries

• Huge new investment in PV production by serious players whi

sustainable markets, or investments will be cancelled. Industry enhanced international co-operation.

• Financial resources required exist in PVPS member countries 

Development Assistance (ODA) is more than $50 billion/year

• PVPS will use its expertise and status to bring together the con

industry and the financial resources required for widespread MDEPLOYMENT
Power IEA PVPS TASK IX Co-operation with 

MOTIVATION

• PVPS Implementing Agreement has the overall mission to assist PV 

significant energy option, through international collaboration

• PV could become a significant energy option in those areas of the w

countries) which have a demand for new sources of electricity, befoalready have reliable and low-cost electricity supplies

• PV is already economic for small individual supplies in developing c

plus people without electricity and unlikely to receive grid supplies is potential market

• IEA has announced a policy of increased co-operation with Develop• Task IX will provide the framework for PV co-operation
Power IEA PVPS TASK IX Co-operation with 

Traditional PV Co-operatio

Developing

Country

+ Science

Ministry

+ Donor = joint 

demostudi

SUSTMAR

Developing

Country

+ Donor = demon

studi

SUSTMAR

Developing

Country

+ Donor + PV Manufacturer = more h

studi

SUSTMAR

Developing

Country

+ Donor + Consultant = even m

SUSTMAR
Power IEA PVPS TASK IX Co-operation with 

Results of traditional PV Co-ope

• Studies, more studies and even more st• Demonstrations, often of unproven syst

(ie, “flemonstrations”)

• Demonstrations without market building• Lots of person-years of management, st

research, record PhD/MWp

• Few MWp of PV
Power IEA PVPS TASK IX Co-operation with 

(Should be

banned!)

(no more!)

PV MARKET DEPLOYMENT STRATE

Sus

Electr
Power IEA PVPS TASK IX Co-operation with 

SUBTASKS

SubTask 10: Deployment infrastructureContribute to overcoming the critical barrier to large-sdeployment - lack of infrastructure - recommended prSubTask 20: Support and Co-operationFacilitate the flow of information to international agenoutside PVPSSpecial professional workshops to catalyse projects aprogrammes.SubTask 30: Techno-economic aspects of PV in devecountriesInvestigate the technical and economic aspects for fetechnical information to other PVPS Tasks
Power IEA PVPS TASK IX Co-operation with 

IEA PVPS

Task IX

Wo

M

PVPS Country

National

Programmes

REWP and other

IEA Implementing

Agreements

Other PVPS

Tasks

PVPS Country

Bilateral

Programmes

and Donors

OECD

DAC

IEA

Improved

Deployment

Infrastructure
Power IEA PVPS TASK IX Co-operation with 

Preparation Task Duration

1997 1998 1999 2000 2001 2002 

DC TeamTask ProposalPreparatoryMeetingDraft AnnexFinal Annex,Global WorkPlanAnnex Approvalby ExCoNational TaskApprovalFirst Task IXMeetingSubTask 10SubTask 20SubTask 30Reporting,Dissemination

TIMETABLE
Power IEA PVPS TASK IX Co-operation with 

CONCLUSIONS

Co-ordination between bilateral donors and National PProgrammes will maximise the impacts of PV in develocountries, and move in the direction of sustainable commarketsThe International Energy Agency is supporting establisthe necessary dialogueThis will deliver benefits to both the PV companies and of the developing world at one and the same time
DFID and Energy

Clive Caffall

 Energy Adviser
Summary

• What DFID does• Recent energy activities• The new agenda• The future for energy in DFID
DFID

• Created May 1997 - formerly ODA• More than 160 countries• 1998 budget £2.3bn• Growing proportion of GNP
Aid by region -1997

39%

37%

10% 13%

1%

AfricaAsiaEuropeAmericaPacific
Largest recipients

0 20 40 60 80 100 

India

Pakistan

Tanzania

Uganda

Malawi

ex-Yuogslavia

Bangladesh

Zambia

Indonesia

China 

£M
DFID organisation

• Nearly half spent through multi-late• Geographic desks

– Bi-lateral country programmes

• Specialist advisory divisions

– Knowledge and Research

• Support to NGOs
Energy Efficiency strate

(ODA - 1994)

• Improve the efficiency of power

production and distribution

• Improve the energy efficiency of en

users

• Promote the introduction of approp

renewable energy
Strategy Implementatio

• through multi-lateral agencies

– e.g. ESMAP

• within UK bi-lateral programmes

– e.g. India, China

• centrally funded research

– engineering TDR
Research Themes

• E1: power supply efficiency• E2: renewables• E3: end-use efficiency• E4: access to energy in rural areas 

 by poorer households

• E5: institutional issues
DFID White Paper - 199

POVERTY ELIMINATION

through :

• enabling sustainable livelihoods• providing better services• protecting the environment
Energy in the White Pap

• Basic Infrastructure

– stoves, alternatives, buildings

• Income and Employment Opportun

– for women, economic services

• Climate Change

– Kyoto, GEF
Developing Country Priori

z Development through economic growthz Reliable and adequate energy suppliesz Air pollution - local (esp. urban) and regioz Climate change - not a priority over basic 

and economic survival

z Need to find win-win initiatives addressing 

concerns and global interests
The Problem

z Rising energy demand - inevitablez Unmet demand will limit development, trap

billions in poverty and dependency

z Must resolve the conflict between energy s

and damage to the world
Renewable Energy

z Can renewable energy resources really 

difference?

z Energy services for off-grid communitiesz Capacity building - not product dumping
Future DFID energy wo

• Need for greater poverty focus• Less technology - more knowledge• Horizontal integrated themes inste

the sector approach?
Village Power ’98

Wednesday, October 7, 1998

09:00-11:00 Promoting Productive Uses and Small

Businesses for Rural Development

- Chair, Khalid Siraj,World Bank

•Promoting Productive Uses through Rural Enterprise

Development - Jim Finucane, Indonesia SHS Project Support

Group

•Energy’s Role in Rural Income Generation: The Grameen

Strategy- Dipal Barua,Grameen Bank

•Productive Uses of Electricity: Country Experiences - David

Kittelson, NRECA

•Small Scale Village Electrification; an NGO Perspective

- Donella Bryce, Appropriate Technologies for Community and

Environment

•Capacity Building for Small Scale Rural Development - John

Kadyszewski, Winrock

•Gender Poverty and Rural Electrification – Elizabeth Cecelski,

Consultant
Promotion of Productive Use

Rural Electrification in Indon

Jim Finucane

SHS Project Support Group, Indonesia

October 7, 1998

prepared with information and assistance of PLN’s Business Services team, especially Mr Marnoto anBasri Hasan
Rural Business Services (RBS) 

a marketing activity of

Indonesia’s national electricity

utility (PLN) to increase kWh

sales to rural businesses for

productive uses (PU)
Background

• 1986 IBRD sector report identifies low

productive use of RE as a problem

• 1989-93 Rural Electrification I projec

includes a pilot Small Business Serviccomponent

• 1994-98 Rural Electrification II projec

includes expanded Rural Business Sercomponent
The Problem

Low productive uses• reduces the financial viability of RE

investments

• low load factor• low revenue

• reduces the economic benefits of RE

investments
Causes of Low Productive Uses w

PLN can address

• Rural businesses have limited informa

about PU possibilities and competitiveof PLN services

• Poor PLN service for initial connectio

increased kVa, negotiated tariffclassifications

• Service interruptions lead to captive p
Solutions

• Better PLN marketing

– Better information to customers– Better customer service– Assistance to link customers with b

equipment suppliers

• Better technical performance
Approach

• Use local NGOs as PLN’s marketing

outreach to rural businesses to provideinformation on PU possibilities and PLservices and to link with banks, suppli

• Reorganize PLN internally to improve

customer service and technical perform
Criteria for area selection

• Grid supplied• Local NGO available• Local support from PLN• Low productive uses - high electrification r

low ratio of industry customers to householconnected, high va connected and per capitsales to households, secondary data indicatesignificant number of enterprises in area
Initial pilot - 1989-94

• Five NGOs promote PLN services to

existing and potential entrepreneurs

• NGOs use community meetings, door 

door surveys, demonstrations, costcomparisons of PLN vs manual and dalternatives, contacts with banks, supp

• PLN has central unit with internationa

advisor to strengthen, guide local NGO
Changes for 1995 -98

• Expand to 26 areas (26 local NGOs)• Target better

– existing businesses, not startups– larger as well as smaller businesses– changeovers (new connections, increase kVA)

• Operate better - standardize materials, centr

local NGO training, conduct 11 month camuse two local advisers

• Mainstream - involve local PLN staff more
Results

• 1991 - 94

– 15,800 entrepreneurs guided– 8,409 (53%) increase productive uses

• 1996 - 98

– 42,339 enterprises guided– 33,143 (78%) increase productive uses– average monthly increase of 170 kWh
Key indicators

firms employment delta

before after kWh

SBS 8,409 2.48 3.28RBS 33,143 3.42 3.63 170

Source: PLN - RBS database
PLN cost benefit study conclusio

• Net benefit compensates the cost of 

program incurred by PLN

– Benefit cost ratio is 1.296– Payback period is 5.72 years

• Profits and employment of business

increased compared with their “befoRBS” status and compared with acontrol group of enterprises
Lessons

• PLN can increase productive uses by targete

marketing interventions which address informconstraints of small enterprises

• Rural businesses have limited information on

changeover options and costs and weak capadeal with PLN, banks

• Local NGO’s can be viable rural marketing p

for PLN, but they require capacity buildingassistance themselves
1

Energy’s Role in the Rural Income Generation:

The Grameen Strategy

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Dipal Chandra Barua

Managing Director

Grameen Shakti

Background:

Electricity is considered to be one of the essential inputs for improved quality of life. As a matter

of fact, the per capita consumption of electricity is taken as a development indicator of a country

or a community. Growths of population and industries have resulted in greater demand for energy

worldwide. In Bangladesh per capita annual fuel consumption is only 56 litres of oil, which is one

of the lowest in the world. Most of this energy derived from fossil fuel (coal, gas, oil and nuclear)

which will soon be depleted. With the predominantly agro-based population of Bangladesh, biofuel is mostly used for cooking in the rural sector. On the other hand the lighting needs are met

with use of kerosene. Expenditure of lighting is minimized by short evening hours and limited

night activities. At the current time 85% of the total people, mostly in rural areas of Bangladesh

are without access to electricity from centralized grid. Electrification by solar photovoltaics has

emerged as a viable technical option for meeting lighting and other small energy needs of the

millions of people living in remote areas of Bangladesh. In this context the need for developing

renewable sources of energy was taken on a greater sense of urgency. Over the years significant

technological advances have been made in the area of renewable energies, especially in the field of

solar photovoltaics (PV), wind energy and bio-gas technology. In addition, for remote rural areas

where there exits no infrastructure for conventional energy supply, these forms of decentralized

alternative energy system will be far more adaptable and well suited. In addition, it can bring

multiple positive results in terms of women’s welfare, children’s education, employment and

income generation. Renewable energy can also bring considerable improvement in rural life

through income generation and thus alleviating poverty.

2.0 Introduction to Grameen Shakti

The obstacle of non-electrification prevents Grameen Bank members as well as rural people from

earning to their full potential. By having electricity many micro-enterprises can become more

lucrative through:

• extending working hours,

• extending selling & shopping hours in the rural areas,

• increasing income from women-led micro-enterprises include basket making, electronics

repair, carpentry workshops, tailoring, stores, fish net weaving, and many other activities,

• growing the local technical retailers include local expertise in selling, maintaining, and

repairing,
2

• helping to become productive households,

• extension of housing plan,

• facilitates children’s education, women’s welfare, recreational activities, income

generation of the rural households,

• Extending education, health benefits to end the cycle of poverty.

In the above background a company named “Grameen Shakti” (GS) came into existence in

June 1996 to translate the ideals of Grameen Bank into reality so far as renewable energy is

concerned. The Grameen Shakti aims at:

• Popularizing and delivering renewable energy to the rural households.

• Marketing solar, biogas and wind energy on commercial basis, focusing on rural areas,

particularly the clientele of Grameen Bank.

• Providing services that alleviate poverty and protect environment through applied research

and development of renewable energy based technologies.

• Undertaking a project to progressively manufacture and market efficient and affordable

household based photovoltaic systems.

• Implementing projects to generate electricity from wind in the coastal belts and offshore

islands; operate mini and micro hydro-plants in the hilly areas.

• Developing and implementing special credit, savings and investment programs for

generation, storage, and utilization of renewable energy for benefit of the rural people.

• Testing the new and appropriate technologies to provide more cost effective energy

services at affordable price to the non-electrified areas.

• Providing capital, technology and management services to energy enterprises, including

individuals, communities, businesses, non-government organizations (NGOs), private

voluntary organizations (PVOs) which promote, produce and finance enterprises based on

renewable energy sources.

Programs of GS

Grameen Shakti is a specialised and leading organisation in renewable energy sector in

Bangladesh. It is currently implementing projects in renewable technologies: PV Program, Wind

Energy Program, and Biomass Program. Besides, training of rural people as well as dissemination

of these technologies among the common people is the core activity of each program. In addition,

Grameen Shakti works with other entrepreneurs in the private sector.

PV program of Shakti:

Grameen Shakti has installed 430 Solar Home Systems up to August 1998 with installed capacity

of 18.174 KWp. It has a plan to install 5000 systems within next 3 years. For this purpose Shakti

will open 8 more branch offices (total of 20) in rural Bangladesh. It also plans to open some

special branches through which Shakti will research on marketing policy. This network allows

Shakti to quickly disseminate and commercialize any improvement in the technology. Since the
3

systems are expensive for the rural people Grameen Shakti has introduced a soft financing

process.

Credit Policy of GS:

A PV system buyer pays 25% of the system cost as down payment and the remaining 75% can be

paid within 2 years time in equal monthly installments with 8% service charge on the outstanding

amount. But Grameen Bank members can get financing from the Bank where the payments are

made in weekly installments instead of monthly installments.

But there remains a group, which can not respond to this financing system. Therefore, Grameen

Shakti has developed small systems (one lamp system & two-lamp system) in order to reach the

technology within the capability of the lowest income group.

Besides, GS has bridged this technology to some income generating activities, so that the

Grameen Bank members can easily adopt the system without exceeding the economic capability.

PV system is also directed to build up some micro-entrepreneurs. The idea of micro-entrepreneur

is such that one will buy the system and sell the power from it to the nearby consumers.

The sales of SHS up to August 1998 are given below:

Table: System sold by Grameen Shakti

 System sold upto

December'97

System sold during

 Jan-August' 98

System sold upto August

1998

Area No. of No. of Watts No. of No. of Watts No. of No. of Watts

Customers Panels Customer

s

Panels Customer

s

Panels

Tangail 64 95 2602 39 45 2042 103 140 4644

Mymenshin

gh

60 92 2980 94 99 4970 154 191 7950

Comilla 18 20 1085 13 13 675 31 33 1760

Shatkhira 0 0 0 30 30 1825 30 30 1825

Khulna 0 0 0 9 9 500 9 9 500

Dhaka 2 9 435 18 18 1060 20 27 1495

Total 144 216 7102 203 214 11072 347 430 18174

Wind Energy Program:

Grameen Shakti has installed two wind turbines in coastal areas. It will install four (4) hybrid

power (Wind, PV and diesel engine) stations in October 1998. Grameen Shakti is pioneer in wind

energy sector in Bangladesh. It is expected that coastal population will be benefited from this

project and it will be a basis for utilisation of wind energy at commercial scale. This wind energy

project will be carried out on micro-enterprise zone basis.

Micro-enterprise zone concept: We decided to electrify one main building where microentrepreneurs could come and use electricity for their businesses, We expect this center becomes

a commercial one, which we call a micro-enterprise zone. The Grameen Bank has many cyclone

shelters along the coast, which turned out to be the perfect places to house the micro-enterprise

zone. These buildings are two or three storied concrete buildings that often house a Grameen
4

Bank Branch office. Thus they are frequented by the Grameen micro-entrepreneurs, and enjoy the

presence of trustworthy staff. The targeted options of this micro-enterprise are battery charging

station, workshops, rice husker, ice making etc.

Bio-mass program:

Grameen Shakti has constructed 30 brick bio-digesters to produce cooking fuel (biogas) and

organic fertilizer. Shakti is planning to conduct research to promote bio-digester as an avenue to

increase family income in rural areas.

Training Program:

GS gives training to the technician in order to create employment for the local people. It has

several dimensions: (a) improving the technical and managerial skills of the professionals of GS

for effective implementation of the programs of GS, (ii) transferring and developing skilled

technician-cum retailer in the rural areas who will be able to provide after sale services to SHS

buyers, provide the accessories and retail SHS as well; (iii) educating the rural people in

renewable energy and popularizing the use of renewable energy.

Research and Development Program:

The research programs have three distinct areas: (i) exploring ways to develop appropriate

technologies and their uses, (ii) developing ways to popularize and making the renewable energy

systems that will be easily accessible to large number of households and institutions, (iii)

innovating financial services for the customers to facilitate rapid expansion of use of renewable

energies, (v) developing and fabricating the solar accessories (charge controller, lamps, dc to dc

converters etc.) locally in order to reduce the total system cost.

Income Generating Activities through Photovoltaics:

Grameen Shakti encourages entrepreneurs to apply PV systems for generation of income. Few

examples of application of PV systems for income generation are cited below:

z One customer of Grameen Shakti is using PV system for heating soldering iron

for repairing radio, TV etc.

z One carpenter extended his working hours after the sunset using solar system by

enabling him earn more than before.

z One saw mill owner has extended his working hours as well by installing solar

system.

z Another buyer has installed a system in the rural market and he is selling power to

the shop owners who buy power to light their shops. It is an example of micro

utility company.

z By operating solar powered computer, some institutions in the remote area have

improved their working ability.

There are other opportunities yet to be tested. Some examples are, operating sewing machine,

pumping for irrigation, battery charging stations to charge batteries for household use, charging

cellular phones in rural areas (Grameen Bank members provide telephone services to villagers),
5

operating drill machines (for the carpenters), operating blending machines to make juice in market

places etc. However, rural entrepreneurs may come up with other innovative ideas.

Few case studies of photovoltaic applications are being cited here.

Case –1

Mr. Hanif is a saw mill owner. The mill is located in the rural area named Dhalapara and is

operated by diesel. The villagers bring their timbers to the sawmill for sizing. Before using the

solar system the mill owner failed to deliver the timbers in right time. But by working at night

with the help of solar light, the working capacity of the mill has increased and the villagers are

getting their timbers delivered at right time, which has increased the number of customers.

Type of use : For lighting a diesel operated saw mill.

Project location : Village-Baromedor, District-Tangail

System description : One 17W solar module

 Two 7W fluorescent lamp

Total system cost : US$ 270

Mode of payment : 25% down payment

 75% by instalment with 8% service charge per annum

 Repayment period is 2 years

Daily hours of use : 4 hours

Impact of solar system : Direct impact

 - Extending working hour (4 hours/day)

 - 20 US$ extra income per day (100 cft/day 

 @0.20US$/cft)

 - Better quality of work

 - Better working environment

Indirect impact

- Increasing income of the workers

 - Increasing employment opportunity

 - Increasing social status

Case-2

Mr. Manik, husband of a Grameen Bank member operates a repairing shop of the

electronic/electrical appliances. The main obstacle of his business before using the solar system

was, heating up the soldering iron. Now by the help of solar system he is using the DC soldering

iron operated by solar power to test the appliances and using solar light for his shop that enables

him to work even at night.

Type of use : Using solar power for repairing the electronic 

 appliances (e.g. TV, radio, cassette, emergency 

 light etc.) in an electronic repairing shop.
6

Project location : Village-Dhalapara, District-Tangail

System description : One 34W solar module

 Two 7W fluorescent lamp

 One outlet for powering TV, radio etc.

 One DC soldering iron

Total system cost : US$ 354

Mode of payment : 25% down payment

 75% by instalment with 8% service charge per annum

 Repayment period is 2 years

Daily hours of use : 4 hours/day (for lamps) & 6 hours (for iron)

Impact of solar system : Direct impact

- Increasing income by efficient repairing of 

 appliances by electrical iron.

- Extending working hour at night time

- 25 US$ more income per day than before

- Increased efficiency of work

- Better working environment

: Indirect impact

- Increasing income of the workers

- The villagers feel easy to use entertaining 

 appliances.

-Increasing the standard of living of the villagers.

Case-3

Mr. Umor has a grocery shop at of kornel bazar. He has bought a solar system with six lamps. He

uses one lamp for his shop and has rented other five lamps to the nearby shops. He collects the

rent @2.5 US$ per lamp per month from those shops. Not only Mr. Umor getting more money

with the help of this system but also the other users are selling more at the night. This is an

example of micro-utility model.

Type of use : Earning by selling solar power to the shopkeepers.

Project location : Village-Kormel Bazar, District-Brahmanbaria

System description : One 50W solar module

 Six 7W fluorescent lamp

Total system cost : US$ 520

Mode of payment : 25% down payment

 75% by instalment with 8% service charge per annum
7

 Repayment period is 2 years

Daily hours of use : 4 hours

Impact of solar system : Direct impact

- Running a business by providing solar lights to 

 the shopkeepers on rental basis.

 - 12.50 US$ income per month (@2.5US$ /lamp 

 per month)

 - Explored an additional way of income

 - Earning more from his shop by attracting 

 more customers at night by brighter light.

: Indirect impact

- The income of the other shopkeepers has also 

 increased due to the use of solar light.

 - The customers are feeling easy to market

 at night.

 - Making easy the living status of the villagers.

 - Increasing social status

Case-4

Use of solar system has given Mr. Shah Alam a new dimension of business. He has taken a

cellular phone connection to his shop by which he provides telephone service to the customer in a

rural area named Nabinagar where no other telephone facility exists. The villagers have got a

tremendous communication network with all over the world by the phone service operated by

solar system.

Type of use : Operating cellular phone powered by solar system.

Project location : Village-Nabinagar, District-Brahmanbaria

System description : One 50W solar module

 Two 6W fluorescent lamp

 One socket for charging cellular phones battery.

Total system cost : US$ 450

Mode of payment : 25% down payment

 75% by instalment with 8% service charge per annum

 Repayment period is 2 years

Daily hours of use : 4 hours (for lamp) & 8 hours (for phone)
8

Impact of solar system : Direct impact

 - Running a business by private telephone service.

- 30.00 US$ income per day [30 calls/day 

 @1.00US$(average)/Call]

 - Better quality of work

 - Better working environment

: Indirect impact

- Established a good network between the rural and the

urban areas.

- Villagers are happy to getting the way to 

 communicate with their relatives living abroad.

 - Increasing the business position of the locality 

 by the communication system.

Case-5

Mr. Uttam kumar is operating a barbershop in the market place of Sagordighi. In past it was not

possible for him to work after evening. Now he has rented a lamp from a solar system owner

(from a micro-utility model) to light up his shop at he night. Therefore he is able to work at night

and thus earning more.

Type of use : For lighting up a barbershop.

Project location : Village-Sagordighi, District-Tangail

System description : One 8W solar lamp on rental basis.

Rent per month : US$ 2.5

Daily hours of use : 4 hours

Impact of solar system : Direct impact

 - Increase of working hour (4 hours/day)

 - 5.00 US$ extra income per day

 - Better quality of work at night

 - Better working environment

- Attracting more customers

: Indirect impact

- Increasing income of the workers

- Providing better service to the villagers

- Busy villagers are happy to make their hair cut at the off

time (i.e. at night).
9

Impact of Photovoltaic on Women:

Electrification by solar systems have directed the housewives to some income generating activities

(e.g basket making at night, net weaving, tailoring etc). The solar light has eliminated the health

hazard kerosene lamp thus providing a better environment. Women need not to bother for lighting

up their houses at every night. It is also helping in improvement of the children’s education. The

bright lights have ensured the women’s security. The areas where the wind turbines will be

installed will be developed as a micro-enterprize zone. The targeted options of this micro -

enterprize are electric sewing machine, ice-making, rice-husking etc, where women will be

encouraged to participate.

Conclusion:

Solar photovoltaic systems are most suitable for electrification of isolated remote areas in

developing countries like Bangladesh. But people living in such backward area can hardly meet

the high cost of solar PV system due the poverty. By introducing a soft loan procedure Grameen

Shakti has already sold 430 numbers of Solar Home Systems.

From the examples, it is seen that solar electricity has helped a lot the rural people who are

involved in business and other activities. Having access to electricity they can work at night and

can earn extra money. Electricity has improved children’s education, women's security as well as

the social status of the villagers. Grameen Shakti’s effort helps rural people to achieve better

quality of life. GS cannot change the whole scenario but at least it can demonstrate a way that

creates an opportunity and hope for the rural people to alleviate their poverty and improve the

life style.
Dipal C. Barua

Managing Director
6HSWHPEHU¶4<<;

0DQDJLQJ 'LUHFWRU

Dipal C. Barua
Grameen Shakti (GS

•An affiliated company of Grame•A company “Not for Profit.”•Established in June 1996.•Operates through unit offices in areas to popularizing and deliverrenewable energy to households.
Renewable Energy Progra

Grameen Shakti

vSolar Energy ProgramvWind Energy ProgramvBiogas programvTechnician Training ProgramvResearch Program
Solar Energy Program

vMarketing solar home system in

remote areas.

vAwareness development of pote

customers.

vDeveloped financial packages f

different customer groups.

vOffer credit program.vProvide after sales maintenance
Credit Policies of GS

v25% down Payment.vThe remaining 75% of the cost 

be repaid within 24 months witservice charge.

vTo encourage the customers to p

100% cash, Shakti offer 3% discon the sales price.
System sold up to August

Area N o. of Custom er N o.of Panels 

Tangail 103 140 

Mymenshing 154 191 

Comilla 31 33 

Shatkhira 30 30 

Khulna

9 9 

Dhaka 20 27 

Total 347 430 

System Sold by Grameen Shakti Upto A
 







    

  

  

    

  























 



Future Plan Of Grameen Shakti

0

500

10001500200025003000350040004500

1 2 3 4 5 6 7 8 9 

 Year S y s te m S a le s S a le to Grame en me mber S a le to non-G ra me en (G e neral)
  



Preference of System

05

101520253035404550

17W p

30W p

35W p

40W p

48W p

50W p

60W p

75W 

Types of System

% of User
Wind Energy Program

vShakti put two anemometer in two site

measuring wind speed.

vInstalled two wind turbine at Chokoria 

Bazar.

• 300W Turbine• 1kW Turbine

vShakti installed four turbine for setting 

Micro-enterprize zone.

• One 10 kW• Three 1.5 kW
Biomass Program

vBio-digester Project

O Cooking purpose

• Shakti installed and supervise 28 brick Bio-d

» Sirajgang» Pabna» Rangpur» Dinajpur» Panchagar» Thakurgaon

O Fish & Land Cultivation Purpose

• The residue of the biogas plant is used in the 

fish cultivation.

• These residues of the biogas plant also used i

fertilizer.
Case Study: 1

Saw Mill Owner

vProject Location:

•Village: Baromedor , District: Tan

vSystem Description

•One 17W module•2 Lights

vTotal System Cost: US$ 270vPayments:

•25% Down Payments•75% loan, with 8% Service Charg•Repayment period: 1 Year
Case-1

Impact of Photovoltaics

Direct Impact

v Extending working time:

4 Hours/day

v 5.20 US$ Extra Income

per hour (25cft /hr@0.20US$/cft)

v Increase quality of

working.

v Better working

environment

Indirect Im

vIncrease incom

workers.

vCreate employvIncrease socia
Case Study-2

Electronics repair Shop

V Project Location:

XVillage: Dhalapara, District: Tangail

V System Description

XOne 34 W moduleX2 LightsX1 plug outlets

V Total System Cost: US$ 354V Payments:

X25% Down PaymentsX75% loan, with 8% Service ChargeXRepayment period: 1 Year
Direct Impact

V Extending working

time: 4 Hours/day

V 0.52 US$ Extra

Income per hour

V Provide Better

quality of work tothe Customer byusing DC SolderingIron

V Increase Business

Indirect Im

V Use one lam

house which his social sta

V Healthier EnV Attract more V Get better

entertainmenoperating raCassette etc

Case-2

Impact of Photovoltaics
Case Study-3

Cellular Phone Shop

V Project Location:

XVillage:Nabinagari, District: Brahaman

V System Description

One 50 W module, 4 Lights, 1 plug outlets 

V Total System Cost: US$ 520V Payments:

X25% Down PaymentsX75% loan, with 8% Service ChargeXRepayment period: 1 Year

V The owners rent two lamps to other two sh
Direct Impact

V Creating a new business.V 30.0 US$ Extra Income

per day (30 calls perday@1.0 US$)

V Enjoy Better quality of

Light.

V Better working

environment.

Indirect Im

V Established a g

network.

V Villagers are ha

getting the way communicate wrelatives living 

V Increase the bu

position of the the communicasystem.

Case-3

Impact of Photovoltaics
Case Study-4

Micro-utility Model

V Project Location:

XVillage: Kormel Bazar District: Comilla

V System Description

V One 50 W module, Six 7W LightV Total Cost: US$ 520

V Payments:

X25% Down PaymentsX75% loan, with 8% Service ChargeXRepayment period: 1 Year

V The owners rent the lamps to other shops.
Direct Impact

V Creating a new business.V 12.500 US$ Income per

month @2.5 US$/lamp permonth)

V Explored an additional way

of income

V Earning more from his

shop by attracting morecustomer by brighter light.

Indirect Im

V The income of o

shopkeepers haincreased due to solar light.

V More customer iV Increased social V Villagers can ma

at night time.

Case-4

Impact of Photovoltaics
Case Study-5

Barber Shop

V Project Location:

XVillage: SagordighiXDistrict: Tangail

V System Description

V One 8 W solar lamp on ren

V Rent per month:

V 2.5US$ Repayment

V Daily hours of use: 4 Hours.
Direct Impact

V Increase of working

hours.

V 5.00 US$ extra income

per day

V Enjoy Better quality of

Light.

V Better working

environment.

V Attract more customer.

Indirect Im

V Increase incom

customers.

V Providing bett

to the villagers

V Increase the b

position of the 

Case-5

Impact of Photovoltaics
Impact of Photovoltaic on

Household Specially on Wo

vEliminated the health hazard due to kero

lamp.

vProviding better environment.vImproving their children’s education.vEnsured the women’s security.vAble to work at night.vHelped women to create income generati

activities like sewing at night, basket ma
 



 



 











0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

123456

 Study Hours Before Taking the system

Stud y Hours After Takin g the system

Households

Study Hour

Impact of Photovoltaics on Househ
Village Power ‘98 October 1998

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NRECA International, Ltd. Page i

PRODUCTIVE USES OF ELECTRICITY:

COUNTRY EXPERIENCES

Prepared by:

David A. Kittelson

Deputy Director/Bolivia

NRECA International, Ltd.

Prepared for:

Village Power ‘98

World Bank Headquarters

Washington, D.C.

October 6 – 98, 1998
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NRECA International, Ltd. Page ii

TABLE OF CONTENTS

1.0 INTRODUCTION ....................................................................................................1

2.0 BACKGROUND......................................................................................................1

3.0 COUNTRY EXPERIENCES....................................................................................2

3.1 Vinto..............................................................................................................................3

3.2 Valles Cruceños............................................................................................................6

3.3 Chapare.........................................................................................................................7

3.4 Licoma – Mina Chilaya .................................................................................................8

3.5 Renewable Energy Projects .........................................................................................8

4.0 KEY FACTORS FOR PRODUCTIVE USES PROGRAMS.....................................8

5.0 CONCLUSIONS ...................................................................................................10

BIBLIOGRAPHY ...........................................................................................................12
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PRODUCTIVE USES OF ELECTRICITY:

COUNTRY EXPERIENCES

1.0 INTRODUCTION

This paper was prepared for the Village Power ’98 conference held in Washington, DC

October 6-8, 1998. The author provides an overview of the productive uses work done

by the National Rural Electric Cooperative Association (NRECA) in various countries

with special emphasis on projects in Bolivia. A simple definition of the term “a productive use of electricity” is, “Any use of electricity that helps generate income for the enduser.” The author describes both successes and failures and concludes with a section

describing the five factors that he considers to be the most important for implementing

successful productive uses programs.

2.0 BACKGROUND

Since its founding nearly 55 years ago, the National Rural Electric Cooperative Association (NRECA) has championed rural electrification (RE) in the USA. And, during the

last 35 years it has played an active role in RE internationally. Though it does not create miracles, invariably, rural electrification has improved the quality of life for rural

peoples around the world. Nevertheless, a line of reasoning exists that argues that

most RE end-users simply consume electricity rather than use it productively. That line

of reasoning assumes that if end-users would employ electricity productively it could

benefit them much more. In conclusion, the reasoning goes, when productive uses proliferate everybody wins. The end user takes advantage of the electricity to generate income for himself and employment for others. The utility sells more electricity making

the investment in electric generation, transmission, and distribution infrastructure more

profitable.

As mentioned in the introduction, a simple definition of a productive use of electricity is,

“Any use of electricity that helps generate income for the end-user.” Some prefer a
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broader definition that can encompass the use of electricity for such things as schools

and community water-pumping systems. Those applications do not directly generate

income for the end-user, but they can obviously contribute to quality of life and development. An expanded definition would be: “Any use of electricity which improves the

financial situation of the end-user and/or contributes to the development of the community and the nation.” Though this paper will concentrate on examples of the former, applications that fit the latter definition will also be included.

Some people tend to consider only micro-enterprises when thinking of productive uses.

By definition, however, large industries also qualify and can sometimes be the key to

financial viability for a project. Perhaps some have felt that the large investors have

sufficient capital to invest in hiring experts of their own and that productive uses programs should limit their help to the poor and disadvantaged. In the experience of the

author, however, it is important to address the entire range of productive uses. Large

factories and mines, for example, also generate income and create jobs.

A discussion of the key components in a productive uses program is included after the

“Country Experiences”.

3.0 COUNTRY EXPERIENCES

NRECA has actively promoted productive uses for over 15 years. In Bangladesh, for

example, literature on productive uses dates back to at least 1982 when a conference

on productive uses was held there. In Guatemala under the Central America Rural

Electrification Support program (CARES), managed by NRECA, productive uses were

promoted with international seminars and specific interventions in the field. NRECA

personnel worked with micro-credit organizations to get productive uses loan programs

started and to enlist their help for training.

In El Salvador NRECA worked with the national utility, CEL, promoting productive uses

with a demonstration trailer and later a van. These demo units were filled with all kinds

of electric tools and equipment. The units were taken around El Salvador and served

both to inform the villagers of the existence of certain tools and equipment and to demonstrate how the equipment was used and what it could do.

In the USA, NRECA-affiliated cooperatives have promoted economic growth in their

communities by sponsoring “incubators”. The concept of an incubator is to provide a

setting with the appropriate support where a business can “incubate” before it launches

out completely on its own. The support often includes physical space in which the busi-
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NRECA International, Ltd. Page 3

ness can operate and access to central office equipment and a secretary offered at affordable rates. Readers interested in more information regarding incubators may contact Brian Crutchfield at BREMCO, the electric cooperative that serves the Blue Ridge

area of North Carolina.

The efforts mentioned above have been documented in NRECA reports and other literature and will not be further elaborated on in this paper.

The author worked as the Productive Uses Specialist in Bolivia for five years and he

continues to be stationed there as the Deputy Director. Therefore, the bulk of the

country experiences and supporting data will be gleaned from selected Bolivia projects

described below.

3.1 Vinto

The Vinto Densification Project was implemented as a pilot project to promote productive uses in the lower Cochabamba valley in the area in an around the town of Vinto.

NRECA set aside $237,000 for the project. Of the total, $100,000 was to be used in

conjunction with ELFEC, the local utility, to install productive uses service drops that

the end users could pay for over time. The remaining $137,000 was to be granted to

PRODEM a micro-credit organization. Under the terms of the contract, PRODEM was

to use $100,000 to provide loans to at least 50 productive uses and $37,000 were to

cover administration and operation costs.

At the conclusion of the project, $95,166 had been invested in service drops and line

extensions with 73% of that amount used in the Vinto area and 23% used to electrify

the community of K’aspi Kancha Alta in another province of Cocabamba. A total of 217

service drops were installed: 183 in the Vinto project area and the other 34 in K’aspi

Kancha Alta. Of the 183 in the Vinto area, only 28 were for productive uses.

Because of problems with disbursement of Bolivia governments funds, PRODEM received only $112,000: $75,000 for loans and $37,000 for administration and operation.

PRODEM used some of its own money to complete the loan portfolio and made 101

loans worth $103,026. In all, 83 productive uses were benefited since 14 of them qualified for two loans and 2 qualified for 3 loans. Loan amounts varied from $66 to $6,500

and 77 of the loans were for less than $1,000. Of the 101 loans, 63 were used to purchase raw materials and 38 for electric equipment.

When PRODEM had fulfilled its contractual obligations with NRECA it sold its entire

loan portfolio in the project area to Banco Sol and unexpectedly returned all the loan

portfolio money, plus 6% interest, to NRECA. Therefore, Banco Sol continued providing
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NRECA International, Ltd. Page 4

loans throughout the project area and NRECA had additional money to invest in another productive uses project.

A financial analysis projected out to 20 years for the service drop component of the

project showed a loss. The main reasons for the deficit were: 1) the low consumption of

the end-user of only 36 kWh/month as an average per end-user, and 2) the high administrative costs (nearly 50% of the total) that ELFEC charged to the densification

project.

Of the 83 productive uses that benefited from loans, 18 were surveyed in a final

evaluation of the loan component of the project. All but one showed an increase in production. Similarly, all but one showed an increase in profit, though, paradoxically, it was

not the one that had reduced production. A majority also showed an increase in the

number of employees. Most of the participating productive uses were tiny shops or

businesses with only 4 to 7 employees. Nevertheless, the 18 productive uses surveyed

generated a total of 25 new jobs.

In the three tables below, one can see a summary of the loan program results. Of special interest is the effect on the production and profits of the 18 productive uses that

were surveyed.
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Table 1. Changes in production and profit or productive uses benefited with loans

Production Level Profit/Month (Bs)

Without With Without With

Production Loan Loan Change Loan Loan Change

Unit Program Program % Program Program %

Dresses, hats 1104 264 -76% 8549 13619 59%

Trousers 384 480 25% 3719 2291 -38%

Women's shoes (pair) 96 144 50% 2060 2830 37%

Tables and chests 30 60 100% 915 2175 138%

Shoes (pair) 18 36 100% 628 1857 196%

Bedspread 24 48 100% 2555 4570 79%

Tables, chairs, doors, 72 148 106% 167 3191 1811%

windows, beds

Guitars, charangos 21 44 110% 2353 4224 80%

Clothes chest 50 120 140% 496 2522 408%

Trousers 480 1200 150% 2291 8225 259%

Trousers 250 700 180% 2225 6896 210%

Traditional skirt 72 216 200% -149 367 346%

Bedspread 12 48 300% 271 2809 937%

Doors, windows 36 144 300% 1520 8242 442%

Closet, showcase, 30 186 520% 1880 3062 63%

dining set, nightstand

Meat and vegetable pastry 6000 45000 650% 1485 5262 254%

Exchange Rate: approx. Bs 4.80 to US$ 1.00 during 1995

Table 2. Number of loans listed by ranges of amount of loan

Amount (US$) Qty of Loans

4,001 - 6,500 3

3,501 - 4,000 2

3,001 - 3,500 3

2,501 - 3,000 1

2,001 - 2,500 2

1,501 - 2,000 5

1,001 - 1,500 8

 501 - 1,000 32

 66 - 500 45

Total 101
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Table 3. Quantity of loans given listed by activity of the productive use

Productive Use Activity Quantity

Potato Chip Makers 2

Market sales stalls 2

Juice Stands 2

Blacksmiths 5

Metal-working Shops 5

Shoemakers 7

Carpenter Shops 16

Clothing Makers 21

Others 23

Total 83

3.2 Valles Cruceños

Using USAID funds, NRECA helped to finance the Valles Cruceños project in conjunction with the regional government and CRE, the rural electric cooperative that has the

concession for the city of Santa Cruz. The project cost about $5.5 million and connected approximately 5,500 end-users in over 40 villages and small towns. NRECA

provided technical assistance to CRE for launching and promoting a productive uses

program. Based on the positive experience with stores opened by electric cooperatives

in Chile, CRE opened a productive uses store called CREAGRO in the project area.

Certain electric cooperatives in Chile began by selling goods directly related with electricity then expanded to the point of selling everything from toothpaste to automobiles.

Obviously, it is no small task to launch into a new activity. It required significant investment on the part of CRE to buy a house in the town of Mairana, outfit it as a store,

stock the store, hire and train personnel, and cover the losses associated with start-up.

At the end of September 1998, the author learned that CRE had decided to close the

productive uses store in the Valles Cruceños (and the other stores that CRE had

opened elsewhere). Subsequently, in a conversation with the General Manager of

CRE, the author was informed that CRE decided to shut down the stores for legal reasons. A clause in the New Electricity Law states that utilities can use the electric bill to

charge only things directly related with providing electricity and garbage collection

services. The productive uses stores had been successful, but the law undermined the

best leverage they had for having people pay back their loans – cutting off their electricity if they did not pay.
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Another component of the productive uses work in the Valles Cruceños consisted of

electrifying sugar cane crushing machinery. There were at least 50 small cane-crushing

operations in an area known as El Chilon. They depended on internal combustion engines for to move the crushing equipment and on firewood to boil the cane juice to

transform it into dense brown sugar blocks. The internal combustion engines were obvious sources of pollution and the use of the firewood was an even more sensitive

ecological issue. The cane crushers bought firewood that was coming from a unique

protected rain forest area. Therefore, a project was designed to have the internal combustion engines converted to electricity and to take advantage of the natural gas pipeline that came through the area for boiling the juice.

For the project, NRECA granted the productive uses money (about $85,000) that

PRODEM had returned from the successful Vinto loan program. That money permitted

CRE to build the line extensions and service drops that would allow the cane crushers

to convert from internal combustion engines to electric motors. To the author’s knowledge, the component of substituting gas for firewood has not been concluded yet.

3.3 Chapare

The Chapare has become infamous because of it reputation as a coca growing and

drug processing area. The United Stated Agency for International Development

(USAID) in collaboration with the Government of Bolivia has designed a program intended to create an alternative economy in the region. NRECA success in rural electrification projects has been tapped to carry out three stages of identifying and connecting area industries and communities to the grid.

Under Chapare I, NRECA built over 19 km of line and installed service drops with

transformers ranging from 10 to 250 kVA to connect 41 industries. Under Chapare II 21

connections were made including both industries and communities. Transformers

ranged from 5 to 50 kVA. The Chapare II project included technical assistance to small

dairy farmers. NRECA personnel met with the farmers on various occasions and visited

some of their small farms, their milk collection and cooling facilities, and the dairy processing plant to which they sell their milk. An experimental extension farm in the area

was also visited. Based on the information obtained, detailed spreadsheets of costs

and potential profits were prepared and explained to the farmers. Based on priorities

identified by the farmers, NRECA also supplied cost information for tractors and electric

milking equipment with ideas regarding how they could contact suppliers and purchase

the equipment on credit. Chapare III is now in progress and is scheduled to conclude

by the end of 1998.
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3.4 Licoma – Mina Chilaya

The Licoma – Mina Chilaya project is an example of how one large productive use

made an entire project financially viable. The productive use was a gold and antimony

mine, Mina Chilaya. NRECA did the prefeasibility study for the project to determine the

viability of electrifying three remote rural villages and the mine (Kittelson, et al, 1995).

The results made it obvious that it was not financially viable to electrify only the villages. The mine, however, used diesel generators and a least cost useful life cycle

analysis showed that the mine was much better off paying for a line extension from the

grid. The mine and the electric utility reached an agreement on how much the mine

would contribute and NRECA contributed the money that made it possible to tap into

the three phase line to the mine to connect the villages.

3.5 Renewable Energy Projects

NRECA has implemented various renewables projects around the world. One of the

most recent examples is the work in Chile under contract with NREL to implement hybrid wind projects that have benefited schools and health posts, besides the village

households. In Bolivia, projects have included solar, wind and biomass technologies.

The biomass plant in Riberalta, which is a 1 MW unit fueled by brazil nut shells and

waste wood, has permitted the greatest productive activities. The electric cooperative in

Riberalta has a significant industrial and micro-enterprise load. The wind project was

exclusively for pumping water for a village water supply system. Solar energy has been

used for village water systems, powering a satellite TV dish (the owners of which

charge an entrance fee to viewers), school systems for lighting, audio-visuals, and

learning-at-a-distance programs. Though there are many who will argue for the longterm benefits of renewable energy, the fact is that its current cost per kW installed

drives large productive users to find alternative energy sources with lower initial capital

costs.

4.0 KEY FACTORS FOR PRODUCTIVE USES PROGRAMS
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NRECA International, Ltd. Page 9

In this section the author summarizes the lessons learned from the productive uses

programs described above. An effort is made to make the conclusions internationally

applicable.

Successful productive uses of electricity programs depend on a combination of key

factors. If any particular factor is weak or missing the program will either fail or be significantly less successful. Those factors are: 1) reliable and affordable electricity, 2)

available and reliable electric tools and equipment, 3) available and affordable financing, 4) available and qualified human resources, and 5) sufficient demand for the product or service. Obviously, other factors such as the legal framework, government stability, and the national economy affect the success of these programs, but those issues

are more country-specific and will not be addressed in this section.

1) Because the tendency has been to emphasize the end-user in productive uses

programs, the author also wishes to point out the importance of considering the utilities.

Bear in mind that reliable and affordable electricity is a key element. Yes, the profit of

utilities must be kept within reasonable limits, but they also have a right to make a profit

and one must remember that if the utility is not financially healthy, sooner or later there

will be problems with the reliability of the service. Moreover, it does not take much

imagination to think about how extended outages impact on productive uses that have

frozen chicken or ice cream in storage.

NRECA has worked extensively with electric cooperatives and utilities to help them

provide reliable service to productive uses. In general, the utilities like to attract and

retain large, stable industries that consume thousands of kilowatt-hours monthly. They

can also be convinced to participate in productive uses programs where end-users

have smaller consumption, as discussed below. Nevertheless, they have to keep the

bottom line in mind. Utilities cannot be philanthropic beyond their means and still stay

in business to provide reliable power.

2) Reliable electric equipment is not always readily available in remote areas.

Equipment can be brought in to jump-start a productive uses program, but that does not

solve the ongoing need for adequate maintenance and repair services with readily

available spare parts.

3) In many cases credit exists, but there have been annoying and discouraging obstacles to actually having access to it. Large enterprises with the proper clout and assets for guarantees have more alternatives available to them. In recent years, microcredit programs have been widely implemented with varying degrees of success. In Bo-
Village Power ‘98 October 1998

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livia, PRODEM has been one of the most successful, but even it has not gotten out into

remote rural areas.

4) The author considers the need for qualified human resources to be the paramount factor in the success of a productive uses program.

5) One of the most difficult things to address is demand for the products and services of the productive uses. It is impossible to control, much less guarantee, a market.

Nevertheless, one can at least avoid making overly optimistic projections. It usually

does not take much market research to determine if projections are reasonable.

5.0 CONCLUSIONS

A productive use is any use of electricity that generates income for the end-user. It may

be a huge cement factory or a tiny juice stand with an electric blender. Electric cooperatives and utilities must watch their bottom line. They are obviously interested in attracting and retaining those productive uses that consume thousands of kWh per

month. While they can be convinced to participate in programs that cater to microenterprises, their philanthropic efforts must remain within reasonable limits if they are to

continue to provide reliable electric service.

Five key factors must exist in order for productive use programs to be successful: 1)

reliable and affordable electricity, 2) available and reliable electric tools and equipment,

3) available and affordable financing, 4) available and qualified human resources, and

5) sufficient demand for the product or service. Many productive uses programs have

concentrated on only one of the five factors mentioned above, but for the program to

succeed the other four have to exist. It does not mean that a program must build all five

from scratch, but program implementers must ensure that the other components already exist in the target area or that the appropriate linkages can be forged with other

actors that can make them available. The author considers that of the five, qualified

human resources is the most important.

Finally, no matter how carefully something has been planned, there are inevitably unforeseen issues that arise. One must learn to be flexible and be prepared to make

timely adjustments in order for the program to generate the greatest benefits.
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SELECTED BIBLIOGRAPHY

1994. II Seminario Regional de Usos Productivos de la Electricidad. NRECA/CARES Guatemala,

March 21 – 25, 1994.

1997. Proceedings of Village Power ’97. Conference held April 14-15, 1997 organized by the National Renewable Energy Laboratory. (There are some papers that address productive uses.)

Kittelson, D.A., H.M. Jones, M.A. Garzón, and V. Prado. 1993. Diseño del Programa de Densificación de la Red Eléctrica en el Valle Bajo de Cochabamba, Bolivia. ADEP 92/05. La Paz, Bolivia: NRECA/Bolivia.

Kittelson, D.A., M.A. Garzón, M. Moscoso, V. Prado, and O. Vargas. 1993. Estudio de Prefactibilidad: Reconstrucción y Expansión del Sistema Eléctrico de Capinota. ADEP 92/06. La Paz,

Bolivia: NRECA/Bolivia.

Kittelson, D.A., M. Moscoso, V. Prado, and O. Vargas. 1993. Estudio de Prefactibilidad: La

Electrificación de Mizque - Aiquile y Pueblos Aledaños. ADEP 92/07. La Paz, Bolivia:

NRECA/Bolivia.

Kittelson, D.A., V. Prado, O. Vargas, and R. Montaño. 1993. Investigación de Campo y Diseño

del Programa de Usos Productivos: Valles Cruceños. ESD 93/10. La Paz, Bolivia:

NRECA/Bolivia.

Kittelson, D.A., J.C. Newberg, and S. Torres. 1994. The Licoma - Mina Chilaya Electrification

Project Feasibility Study. ESD 94/02. La Paz, Bolivia: NRECA/Bolivia.

Vargas, Omar. 1995. Evaluación del Proyecto de Densificación Vinto. ESD 95/09. La Paz, Bolivia: NRECA/Bolivia.
Small-scale village electrification; an NGO perspective

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Paul Bryce, President of APACE; Assoc. Professor, Univ. of Technology Sydneyi

Donnella Bryce, Program Director of APACE

This paper examines traditional mechanisms for Overseas Development Assistance (ODA) in

the sector of rural village electrification, and the preconceptions that underlay these

mechanisms. Some specific consequences ‘on-the-ground’ are examined. The reticence of

many donors to commit further investment in the sector is understandable and may be

explained by these results, but an understanding of the mechanisms may lead to an alternative

approach.

Electricity is the most versatile of energy forms; indeed there is arguably no route to

sustainable development in its absence. It does not automatically provide development paths,

a fact that is implied later in this paper. Nevertheless electricity does represent a tool capable

of economic, educational, health and other sectoral enhancements that are ingredients for

controlling one’s developmental destiny. In rural areas in particular, electricity has an

important additional role as a vehicle for information flow, enabling a community to take part

in affairs beyond its village confines, and making national political and social cohesion a

meaningful concept.

Notwithstanding the need and benefits, electricity is not available for the vast majority of rural

communities, and access is not improving at any significant rate. More people are without

electricity with each passing year. Its highly uneven distribution represents a significant divide

within and between nations.ii

The UNDP’s Initiative for Sustainable Energy (UNDP, 1997) concludes that ‘current

approaches to energy are thus not sustainable and will, in fact, make energy a barrier to socioeconomic development’. The document also notes that the ‘conventional approach to

developmental assistance, based on significant use of ex-patriots, is becoming increasingly

more expensive. A new, more cost-effective approach... is needed.”

Planned redirections towards new and renewable technologies and local capacity building (for

example, UNDP,1997) have general merit, but some of the disappointing results of past efforts

will remain unless a change in underlying presumptions is also included in new strategies. A

new field-tested paradigm addressing past disappointments is presented here for the specific

context of Melanesia, but may also be relevant in other similar contexts.

The challenges for rural energy supply:

The energy sector as a whole is in crisis. Whereas much can be attempted on the demand side

in nations with adequate supply, nearly half the world’s population have no affordable access

to commercial energy services. Conservation and efficiency are academic notions in most

rural settings of developing nations. Less than 20% of such villages have nominal access to
electricity and perhaps no more than a few percent have actual and consistent access (Reddy

and Goldemberg, 1990).

Recently, some donors and other stakeholders have looked to new renewable technologies,

and new financial arrangements involving the private sector, as a way around the dilemma.

The notion that renewable technologies alone have an answer to rural needs, through their

decentralised character, leads usually to debate on relative costs of some of these

technological ‘solutions’. The debate diverts serious attention from the managerial and

institutional frameworks that remain central to any effort in this area.

Encouraging the use of private capital, in credit schemes, loan guarantees and B.O.O.T. and

B.O.T. arrangements, may have application in urban and peri-urban areas in nations enjoying a

moderately developed market base and middle class. It is seldom a solution for rural village

contexts, particularly in contexts for which poverty-directed ODA is most relevant. In short,

such arrangements become increasingly less attractive as the poverty-alleviation need

increases.

‘Natural’ urban population drift has also become a reason for procrastination on the difficulties

of rural energy supply. The serious side-effects of rapid urbanisation has diverted attention

from the rural sector, although rural populations do continue to increase in absolute terms.

As well, the institutional frameworks that exist in urban areas, at least in some form, tend to

encourage urban-based ODA. Economic restructuring focuses further attention to urban

institutions, and may be said to reduce the importance of the rural, informal sector.

Nevertheless in many regions, and notably many of the small island developing nations of the

Pacific, there is little prospect of a sustainable physical, social and political environment for

economic restructuring without attention to the rural sector. Of the 90% of PNG citizens

dwelling in rural areas, 3 out of 4 live in absolute poverty compared to 1 in 10 within urban

areas (Flanaghan, 1997). In the Solomon Islands, the rural dweller accounts for 86% of the

population. No more than 500 jobs are created each year in the formal urban sector, for an

annual cohort of 6000-7500 school leavers (Bank of Hawaii, 1994). In such situations rural

and urban problems are inseparable. A suitable approach to affordable electricity, that can

enable a meaningful social, political and economic participation of rural citizenry, needs to be

adopted.

The traditional paradigm:

There are a number of presumptions built into technical development assistance projects, and

in particular village electrification projects. They are listed below, as generalities that apply in

varying degrees to different programs and different national contexts. These are set out as

caricatures, rather than judgements of any particular program in the sector.

Presumption 1: ‘Village development is a technical matter’:

Investment of ODA in the sector is increasingly recognised in the literature as serving a

people-centred developmental objective, since financial analysis seldom finds such investment

justified. Paradoxically, the developmental objective, at least at village level, remains

unacknowledged in detailed project design. The indicators chosen for appraising, managing,

implementing and evaluating and reporting on specific programs or projects are technical in
nature, rarely concerned with the translation process to people-centred development

outcomes.

Initial assessment of a rural village electrification program, for example, is generally conducted

by a team chosen for their technical training. Given a positive prognosis from this appraisal,

prefeasibility studies often proceed to rank preferred sites for village electrification, using a

weighted function of quantifiable technical and financial parameters. If decentralised

renewable technologies are considered, the parameters would involve the potential of the

energy source, such as the head and flow of water from available rivers, or the insolation

available. If existing and projected demand for electricity at the site is estimated, the figures

will normally derive from quantitative models presuming a formal economy, and will

accordingly be very small or difficult to estimate. [These small figures are often self-fulfilling

prophesies, for reasons discussed under Presumption 3.] If on-site estimates are considered,

the field team will again be chosen for their technical measurement abilities.

Following these studies, projects proceed through detailed design, specification, tendering and

construction in a similar technical vein. Accordingly, reporting in the literature of completed

projects will often focus upon machinery choices and technical performance. Training aspects

may be mentioned, focussing on the nature and extent of technical training associated with

post-project requirements only. Such training is normally conducted for, and within, an

institution remote from the village; in accordance with Presumption 3. In contrast, most

failures of rural power schemes are attributed to local non-technical factors. The operation

can be a (technical) success while the patient dies.

During each of these project phases, there is seldom meaningful contact with the target

recipients, nor the context of their needs. The institutional strengthening that must

accompany any infrastructural project is seen to be focussed elsewhere, in accordance with

Presumption 2. A process of rural participatory appraisal, if considered, does not include

village recipients in technical or management roles that may enable local strengthening.

In short the power supply industry, and its management methods, are based on specialised

technology and support structures; the rural developing world is not.

Presumption 2: ‘Village development is a First-World matter’

Developing nations generally find themselves particularly short of the technical expertise

perceived in Presumption 1 as central to this developmental exercise. Technical expertise in

the electricity sector is already over-extended by the challenges of maintaining the existing

urban infrastructure. Trained people have an urban career path that follows their University

engineering training, in which electricity system design and equipment choices are tied closely

to the contexts of First-World institutional management and social structures.

Almost by definition, those regions in which ODA is most justified will be the most deficient in

such technical expertise. Accordingly, overseas consultants are often relied upon to make

assessments of a program, and here the mismatch of background and training with a rural

people-centred objective is perhaps even more acute. The overseas technical consultant is

generally chosen to have the maximum level of preconceived knowledge of power system

construction and management learnt and applied in a foreign social, cultural and economic

context. If such consultants also have exposure to developing country situations, their
experiences are likely to be in previous appraisal and design roles where the Presumption 1 has

already been formed and reinforced.

Later feasibility and design stages are often provided by ODA-subsidised energy advisers, and

dependence upon such overseas expertise will intensify as new and renewable technology

projects become more frequent.

The tendering process (of Presumption 1) favours implementation by overseas-affiliated

contractors. They bring experience gained in a context where equipment, technical

infrastructure and educational structures are quite different to those found in local villages. A

‘First World’ methodology is ‘planted’ within an exotic physical, cultural and economic

environment.

These methodologies have not ‘taken root’, with the response that the UNDP, for example,

sees building indigenous capacities as a clear priority (UNDP, 1997). Nevertheless, such

capacity building is still seen to involve translating and strengthening the first-world model of

well-trained expertise within central institutions, a model that we argue will not directly

address the challenge of sustainable rural village electrification.

The most important ‘institution’ to be strengthened must relate to local development, centred

on the consuming community. Such an institution has most need, most motivation to focus on

the underlying project objective, and is least distracted by competing contractual agreements

and career paths.

Presumption 3: ‘Village development is an urban matter’

Presumption 2 notes that the choice of expertise for appraisal, and indeed for program design,

draws on a small selection of urban-based individuals, commonly with a lifetime of experience

concentrated on technical and economic decisions as they pertain to a formal economy. Incountry expertise may possibly be found within the Governmental Ministry or private sector of

a major city, where the few technically-trained graduates have found rapid career advancement

outside their rural origins.

Their training and experience of decision-making within the electricity ‘industry’ in urban

centres reinforces assumptions that are not optimal for a rural village setting. Some are cited

below:

• Decisions for urban electricity supply are adequately conducted without reference to

specific consumer groups; their requirements are statistically predictable. The social

context does not significantly impinge upon design and management; it is a delivery system

only.

• Existing and projected demand can be quantified, operation and maintenance costs can be

estimated, and competing energy technologies can be compared ‘on paper’.

• The consumer, the designer and constructor, and the system operator are separate entities.

• The environment potentially affected by the power system, and the environment most

relevant to beneficiaries, are separate.

• A power scheme ends with the generation system, or at most the transmission line.

Existing cash-flow and power demand will support connection fees and a usage-based

tariff system.
• Dwelling and building construction conforms to presumptions in electricity wiring

standards developed in the First World.

• The cultural beliefs, the skills base and the local physical resources of clients are generally

not a consideration.

• The land for power station and transmission facilities is either Government-owned or

available for title purchase.

• There is no need for consumer training nor awareness programs, since separate

mechanisms are available for safety licensing, operation and maintenance of the system,

and for awareness of the developmental potential of electricity usage.

In short the power supply industry, and its thinking patterns, are centralised; rural people are

not. None of the above assumptions were valid in rural energy projects conducted by the

authors.

The consequences:

There are a range of endemic factors that lead to the Presumptions 1,2 and 3, not least of

which is the isolation of recipients. Indeed, the very needs of rural village residents for

poverty-alleviation and developmental programs stem largely from their position at the far end

of a well-meaning but imperfect institutional pipeline of information and capacity-building.

Their aspirations and their capacities are difficult to reach within cultural and organisational

frameworks developed rationally from the opposite, donor-based end. The preconceptions of

value-free technology, centralised management and context-free development that underlay

these 3 Presumptions tend to be a natural result of ODA processes.

In short, it may be that the goal of sustainable human development at rural village level

becomes, in practical application, divorced from the process of implementing village

electrification programs. It may be this process that underlies shortcomings in results of rural

village electrification programs, that have led to such persistent criticism in the literature.

Specific effects that the author has observed, particularly within the context of the Pacific

Island developing states, may be summarised as follows:

1. Local communities are left with

• a “Catch 22” of initially unaffordable costs for connection fees and usage tariffs;

• rules that preclude connection to most forms of customary dwelling, based on

wiring practices suitable for urban areas;

• few, if any, skills derived from the project;

• few, if any, direct employment opportunities;

• little understanding of locally-appropriate possibilities for electricity-based

development, since local involvement and discussion has been minimised by the

management process, and the developmental objective has been largely lost in

technical challenges of providing infrastructure for a harsh, remote site;

• a lack of community cohesion to pool skills and capital for applications of the

power, exacerbated by outside environmental and social disruptions from the

construction phase;

• internal social strains arising from the impact of an exotic technology, and in all

probability the alienation of traditional land and resource holdings.
2. The host Government or Electricity Authority is left with

• legal disputes arising from land alienation, and possibly displaced persons;

• recurrent maintenance, repair and security costs at a remote site;

• minimal revenue from tariffs, as the subsistence economy is presented with no

obvious means to exploit the available electricity;

• low plant utilisation factor, leading to reduced motivation for expansion or

replication;

• disappointing lack of local cooperation and communication regarding minor

operation and maintenance tasks, and possibly security problems, arising from

many of the above factors;

• no development of local infrastructure to support service personnel;

• imported machinery fabricated by exotic production techniques that cannot been

replicated in-country;

• minimal employment generation, even in urban areas, given the imported

machinery;

• added social costs, arising from continuing population drift to urban areas, perhaps

exacerbated by the displacement of people and deterioration of local community

cohesion.

An alternative paradigm:

There are long-standing examples of successful village electrification projects in the Solomon

Islands, in which the debilitating residual characteristics listed above have not arisen (Bygrave,

1997). Indeed, remarkable social and economic development has followed such projects

(Krajenbrink, 1984; Holden and Gammage, 1991; Offord,1995, Waddell, 1997). In essence,

their common characteristic is a ‘Village First’ project management cycle. Institutional

support runs through several levels, but major effort must occur at local level, and begins with

day 1 of the appraisal process in which village recipients begin attaining ownership of the

development process that is the objective of rural energy supply. The process may be

separated into phases as follows:

1. A village request precedes a process of self-appraisal, based upon indicators of social

cohesion, community goals, managerial and other capabilities and an information sharing

regarding costs and responsibilities.

Lesson 1: The developmental objective must be formulated and owned at village level.

2. An awareness workshop builds upon initial appraisal information, focussing upon

appreciation of the technology, its implications and potential uses, and local resource

investments necessary for a process where project effort is locally-focussed. A local

technical appraisal, mirroring that found in conventional approaches, accompanies the

workshop allowing preliminary feasibility results to be shared and possible difficulties

discussed relative to local capacities.

Lesson 2: Institutional strengthening begins early, and locally.

3. Feasibility design draws upon the results of the above processes, in which costs are

weighed against (qualitative) indicators concerned with the likelihood of sustainable human

development. Technical parameters influence potential costs and become a limiting factor

in the magnitude of developmental potential. These parameters are influenced by social,

environmental conditions as well as local resources, and are subservient to the major
questions of likely linkages between energy supply and human development.

Lesson 3: The technical design is within a local developmental context.

4. Project funding is based upon contribution-sharing, in which village communities are a

significant stakeholder. A contract is drawn up to delineate respective responsibilities of

donor, implementing agency and village community.

5. Implementation follows a design-and-construct methodology that allows some local

decision-making and avoids costly processes of remote specification, tendering,

contractual management and cost-over runs from unanticipated local difficulties.

Lesson 4: Local objectives are matched by local responsibilities.

6. On-site local training-by-doing, encouraged by previous phases. Off-site training for key

women and men in operation, maintenance, project management, load utilisation,

electricity safety.

7. A participatory follow-up phase of evaluation, based upon developmental indicators set by

local priorities in phases 1 and 2.

Lesson 5: Evaluation is concerned with objectives and outcomes, rather than time-bound

outputs.

The ‘village first’ model requires patiently-developed partnerships, but it is not a speculative,

academic model. The approach has been adopted and proven in the field in differing technical

and social contexts, over many years. Results are ‘on-the-ground’, with higher levels of local

cohesion leading to endogenous maintenance and indeed improvements to infrastructure as

well as locally-initiated developmental effects. There have been reductions in population drift

to urban areas, schools locally constructed and increased attendance rates, improved health

facilities and several local industries established.

Summary:

UNDP’s Initiative for Sustainable Energy (UNDP, 1997), while observing the lack of

sustainability of present mechanisms for energy supply, also proffers four planks to activity

programmes in the future:

• capacity building

• encouragement of institutional and legal frameworks

• encouraging a leapfrogging to new and renewable technologies

• linkages between energy and developmental goals.

• The alternative ‘Village First’ project cycle for rural electrification discussed above

addresses each of these facets in a fashion that provides the means for its appropriation to

specific cultures, and has been demonstrated to be cost-effective.

The challenge may be seen in the words of a past achiever, quoted here out of context:

“The world that we have created, as a result of the thinking we have done so far, creates

problems that cannot be solved at the same level at which we created them.”

........... Albert Einstein
Acknowledgments

We acknowledge the kind support of the National Renewable Energy Laboratory and World

Bank in making this presentation possible. The paper draws on 20 years of design,

management and field implementation of small renewable-energy systems in the Pacific and SE

Asia, made possible and greatly assisted by the competence of staff and supporting members

of APACE and the University of Technology, Sydney.

Part of the content presented here first appeared in Development Bulletin, Volume 43, page

13, 1997.

References

Bank of Hawaii, “An economic assessment of the Solomon Islands”, Autumn 1994

Bygrave, Stephen, “Sustainable Energy for Community Development”, Development Bulletin,

41, April 1997.

Flanaghan, Paul, “Urbanisation: Challenges and Opportunities for the Australian Aid Program,

AusAID briefing paper No.48, July 1997

Holden P. and Gammage J., “Project Review Visit, Solomon Islands”, AIDAB/NGO

Program, AusAID, 1991.

Krajenbrink, Ernst, “Mission Report US/SOI/83/076”, United Nations Industrial Development

Organisation, Vienna,1984

Reddy A. and Goldenberg J., "Energy for the Developing World", Scientific American, p.111,

September 1990.

United Nations Development Program, “UNDP Initiative for Sustainable Energy”, Energy and

Atmospheric Programme, Sustainable Energy and Environment Division,

http://www.undp.org/seed/energy/unise,1997

Waddell, Robert, “Environment, population and sustainability in the South Pacific”,

Development Bulletin, 41, April 1997, p.34-36

World Energy Council, “Financing Energy Development: the Challenges and Requirements of

Developing Countries”, London, WEC,1995.

 i

 APACE is an NGO specialising in rural village electrification in the Pacific and parts of SE Asia. It can be

contacted at APACE@UTS.edu.au; c/o University of Technology Sydney, PO Box 123, Broadway 2007,

Sydney, Australia.

ii This corrosive effect on North/South relations, from the general failure to address energy needs at the

poorest levels of global society, was evident from personal discussions and observations at the recent Rio + 5

Earth Summit.
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Gender and Poverty Challenges

in Scaling Up Rural Electricity Access*

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Elizabeth Cecelski**

* Based on a paper under preparation for the National Renewable Energy Laboratory, 1617

Cole Boulevard, Golden, CO 80401 USA (contact: Barbara Farhar).

** Technology & Development Group, University of Twente, P.O. Box 217, NL-7500 AE

Enschede, The Netherlands, or Bahnstrasse 24, D-51688, Wipperfürth, Germany, tel. +49

2267 82050, fax +49 2267 880762, email <ececelski@t-online.de>

When I was first asked to give this presentation on gender and poverty in scaling up rural

electricity access, I went back to the Village Power ‘97 Proceedings from last year and looked

for what had been discussed on poverty and on gender last year. I found very little. Out of

maybe 50 or 60 projects that were presented in the course of the meeting, for example, there

were only two (2) that even mentioned women; and there was very little discussion of poverty

issues. This was very different in the presentations yesterday and this morning at Village

Power ‘98, and in the workshop on Women and Energy Sustainability on Monday. I want to

take this opportunity to thank the organizers of this year’s meeting and yesterday’s speakers,

and of course the speakers in this session, for putting poverty alleviation and gender squarely

on the international agenda for scaling up rural electricity access at VILLAGE POWER ‘98.

That makes my job this morning much easier.

Sustainable rural energy development and the 1990s global energy agenda

Sustainable (energy) development has been defined as (deLucia, 1990):

(1) Equitable growth - betterment for all people but with particular concern for the poor;

(2) Avoidance of natural resource degradation or depletion; and

(3 Self-sufficiency with respect to organizational, fiscal and managerial inputs.

Decentralized power clearly meets the second criteria above; considerable attention is

presently being given to the third; to the first, in light of current international development

priorities, “particular concern for the poor and women” should probably be added.

For example, sustainable human development goals are currently defined by UNDP as: (1)

eradicating poverty; (2) increasing women’s role in development; (3) providing people with

income-earning opportunities and livelihoods; and (4) protecting and regenerating the

environment.

Most renewable energy activities have in fact been justified largely on environmental and

global climate change grounds in the 1990s. The Kyoto targets on carbon dioxide emissions

have given these efforts a renewed urgency. The global energy agenda today recognizes that

the energy-environment link is often a negative one, yet more energy is needed for growing
populations and for increasing energy demands with higher incomes. Energy efficiency, fuel

switching and renewable energy are possible solutions that are technically mature and

commercial. These activities are to be promoted through “sustainable” market processes, but

are still hoped to be affordable for the poor. Hence “market barriers” need to be overcome to

reach their primary target group of poor, rural households.

What about the poor?

We spoke a lot yesterday about poverty alleviation, while at the same time talking in terms of

market approaches to promoting renewable energy. At a time of global economic crisis, when

rather than poverty alleviation, we are seeing tens of millions of people likely to be pushed

below the poverty line, it seems especially important to clarify what our approaches to scaling

up can be here.

What about the poor? There are three approaches to access by the poor that have been

followed in scaling up rural electricity access. First, access by the poor has been ensured

through targeted measures, such as subsidies or community/NGO approaches. These has been

justified by the fact that access to adequate energy supplies is critical to livelihood strategies of

the poor. The poor, with irregular and unreliable incomes, cannot afford to invest in more

efficient appliances or to buy in bulk, and thus end up paying more per unit for energy.

The problem with this approach is that subsidies may not be sustainable; and the

community/NGO approach is risky, time-consuming, and input-intensive, and may not be

replicable everywhere.

A second approach that is being experimented with a lot lately, is to make credit available to

purchase renewable energy technologies, in order to overcome the market constraint of high

capital costs and limited credit for renewables. However, the most optimistic credit scenarios

for e.g. solar home systems (SHS) assume that 50 to 75 per cent of rural households will be

able to afford SHS, even with liberal credit programs in place. That still leaves 25 to 50 per

cent of rural households without electricity!

And offering credit to poor households can even have perverse effects: Total household

energy expenditures of poor households typically increase following rural electrification, likely

decreasing expenditures on food; debt payments may not be sustainable, given irregular

incomes; and poor households even risk losing their original investment through repossession.

The third approach to expanding access is simply to ignore the poor. They can’t afford rural

electrification anyway. Marketing should aim at higher income households who can not only

afford the initial costs, but can afford to take on the risk of trying out new technologies. Some

poor households will still be able to finance and benefit from renewable energy technologies

through cash purchase (gifts, remittances, savings societies).

However this approach not only contributes little to poverty alleviation; it runs the risk of even

intensifying inequalities between rich and poor, as happened with the introduction of improved

agricultural technologies during the Green Revolution in Asia.

All of these strategies have some role to play in increasing access to electricity in rural areas.

But as we see above, none of them is entirely satisfactory. So if we want to link rural
electrification to poverty alleviation - and I think that we do, especially those of us working in

development organizations - then we need to be coming up here with some more innovative

solutions to access. Leasing, and micro-credit through solidarity groups, for example, are

promising new approaches we have heard about this week.

How are gender and poverty related?

How are gender and poverty related? Poverty means, among other things, limited access to

energy sources. Poverty influences and determines energy choices of households. It is also

one element that can enhance or detract from survival strategies of the poor.

The main source of energy in poor rural households is not biomass. It is women’s labour.

The real energy crisis in rural areas is women’s time.

This graph shows the allocation of time to survival activities by gender for a few selected

activities in several countries where time use data is available. 1 As Mieko Nishimizu [World

Bank Vice President, South Asia] so eloquently described to us yesterday morning, clearly this

burden falls disproportionately on women. Cooking, firewood collection, food processing,

water hauling - this is productive work, this is necessary work, but it is unpaid work, it does

not enter the market. It is not recorded either in national accounts or in energy balances.

So energy poverty has a gender bias in rural areas.

Another gender-poverty linkage: women-headed households. This table shows the high

percentage of households headed by women throughout the world. The figures are regional

averages; in some countries they are much higher. In Botswana, for example, 46% of

households are female-headed. Women-headed households are poorer than male households,

and they are more vulnerable to energy scarcity. Certainly if we look at that 25-50% of

households who cannot afford solar home systems, even with credit, a disproportionate

number are likely to be households headed by women.

Market demographics of renewable energy

Now that we have talked about some of the ways that the market can fail to provide access to

energy for the poor and for women, let’s talk about what the market can do. What are the

market demographics of renewable energy and women? Some of you may have noticed that

women are different from men (I refer here of course to their energy consumption!). Women

use energy differently than men. They have different energy needs, too.

For example, this overhead shows the different home lighting and connection point

preferences of women and men in a biogas village power project in Ghana. I would like to

make a couple of points here. First, women want to use home lighting to make their work

easier and more productive - both their domestic work and their income-earning work.

Remember, many of women’s income-generating micro-enterprises are home-based. The

income from these small-scale, part-time activities is often absolutely critical for their families’

survival. But like women’s domestic work, these income activities are not highly visible -

 

1

 Thanks to Barbara Farhar of NREL for this overhead, using some of my data but presenting it in a much

“sexier” way.
women often don’t go to a workplace, they are weaving while taking care of children, or

preparing foods to sell at the same time that they cook the family meal and so on. Women

work at home in spurts when they have time, often after the children are in bed. They need

light where they work. One bulb in the living room may not meet those needs.

Men on the other hand, in this case at least, are mainly interested in the entertainment value of

electricity. We see this too in unelectrified areas. Have you ever seen a woman taking a car

battery used to run a television to be recharged? Men do this. Men also are - not always but

usually - the purchasers of batteries for radios, and batteries are often a major household

energy expenditure.

Of course these electricity needs could be different in other areas (in another example I have

from a South African township, men are also interested in income-generating uses of

electricity), but I think this example is interesting to illustrate that there can be real differences

between women’s and men’s energy needs.

What about cooking?

What about cooking? This is women’s energy need par excellence. Cooking is time- and

effort-consuming. We worry a lot about the burden of fuel collection on women, but fuel

collection, even in very fuel-scarce areas, takes maybe 1-2 hours per household per day. And

at that level of scarcity, men are probably also participating in fuel collection, as well as

women.

But cooking, and food preparation, and cleaning up - remember, cooking with biomass fuels is

dirty, too - the cooking activity takes 5 or 6 hours/day, and this is virtually all done by women

in every culture. Of course, there are the negative health impacts on women and children, too.

Cooking is also, I would like to point out, a very large share of household energy

consumption, and the largest single rural energy use in low-income countries. It is even

larger if we include women’s micro-enterprises, where food processing and other energyintensive activities make up a considerable proportion of informal sector energy consumption.

This means that, unless cooking needs are addressed, positive impacts on carbon dioxide

emissions, on deforestation, and on women’s health and time will be fairly marginal.

And electricity provision does not address rural cooking needs in most cases. In particular,

most decentralized electricity systems cannot address cooking needs at reasonable cost. Now

I wanted actually to talk a little about the potential for electric cooking, but not wanting to be

responsible for any engineers having heart attacks so early in the day (yes, electric cooking is

thermodynamically inefficient and expensive to use, but even rural women in developing

countries like it and in some cases, use it), let me just mention one point here. A few people

are working on low wattage and low-cost electric irons, burners, kettles, someone yesterday

brought up DC appliances: How about focusing more technology research on these end-use

appliances that women are interested in?
What high priority needs of rural women could be met by electricity?

There are however other energy needs that rural women have, that can be met by electricity,

such as:

- saving labour in water collection by energizing water pumping;

- saving labour and time in cooking where feasible, e.g. with excess output from small hydro,

perhaps with low-wattage, low-cost appliances;

- saving women’s time and labour in agricultural processing such as grain grinding, rice hulling

and oil extraction.

- improving security and women’s ability to participate in community and school activities at

night, with street lighting;

- making women’s domestic work easier and improving the productivity of women’s incomeearning work through home and commercial lighting, refrigeration and key appliances like

blenders and irons - with connection points, naturally, in the places around the house where

women work; and

- improving women’s and family health, through water purification, and perhaps in innovative

ways like solar-operated fans to remove smoke from kitchens.

Of course there can be many others, but those mentioned above are certainly among the

priorities for many rural women. There are many elements to meeting these needs: technology

research and adaptation aimed at women’s needs; targeting women in marketing and

extension; ensuring complementary infrastructure to enable energy to increase productivity;

and empowering women to use energy to improve their status and confidence, among others.

One of the most important, though, is undoubtedly guaranteeing women’s equal access to

credit.

Women need credit

One of the key areas for enabling women’s participation in renewable energy is credit and

finance. We are hearing a lot at this meeting about measures to ensure affordability of

renewable energy, including credit. Women need credit for renewable energy: first as endusers, to be able to afford labour-saving technologies and appliances; secondly to improve

energy efficiency and profitability and save labour in their micro-enterprises; and thirdly,

perhaps as energy entrepreneurs who could sell and maintain renewable energy technologies.

The latter two are especially important, because we know that women use additional income

from their enterprises for food, for school fees, for clothes for their households.

There are several arguments, summarized recently by Amulya Reddy in ENERGIA News,

2

 for

women logically being appropriate renewable energy entrepreneurs for household and smallscale industry:

 

2

 The quarterly newsletter of ENERGIA, the International Network on Women & Sustainable Energy, c/o

TDG, P.O. Box 217, NL-7500 AE Enschede, The Netherlands, <www.energia.org>.
- women are users of these devices, so they may be more sensitive to customers’ desires, e.g.

women potters produce and market 11,000 stoves annually in West Kenya;

- women are effective entrepreneurs with a good credit record, e.g. in 1996, 94% of Grameen

Bank borrowers were women, with a 98% repayment rate;

- women can more effectively market to women, e.g., the Vietnam Women’s Union is

promoting solar home systems and collects payments.

To this we should add too the important point that Ambassador Spearman made yesterday,

that women are often more effective in maintenance and repair than men are. There is a long

and well-documented successful experience of involving women in hand pump maintenance in

the water sector, and we are starting to have some positive anecdotal evidence on women

being effective in maintenance of solar home systems and biogas plants too. As Ambassador

Spearman pointed out, one reason is because women are less mobile than men, they tend to

stay in the rural area where they receive training, and not to take those skills off to urban

areas.

What kinds of financing programs have been successful in providing micro-credit to women?

This overhead gives information assembled by Women’s World Banking on business credit for

women. Poverty-focused programs within commercial banks; poverty lending banks; nongovernmental organizations; and affiliate network institutions have been most effective. As

you can see, some of the portfolios are quite substantial, in the multi-millions of US dollars.

Some of these programs have quite a high proportion of women participating, and some target

only women. The average loan size is in some cases in the right order of magnitude for solar

home systems, for example. And the repayment rates are quite high, mostly in the high 90s

percentiles, much better we might note than figures we have been hearing lately from some

major commercial banks with more conventional portfolios. We should note too that these

repayment rates refer not only to women, but to the total portfolio of low-income borrowers

in these micro-credit programs.

What are some of the factors that make these credit programs accessible to women?

Frequent and flexible repayment schedules, alternative collateral requirements, low transaction

costs (in money and time), an informal banking atmosphere where women are respected,

simple loan application procedures to accommodate illiteracy, and the use of information

channels accessible to women, are all factors that have been found to favor access by women

to credit programs (UN, 1995). Many of these factors favor low-income borrowers as well.

For example, conventional credit programs require land or property as collateral, which

women often don’t have; frequently they require a male member of the household to co-sign a

loan. Alternative collateral like jewelry, that women have, or solidarity groups that guarantee

repayment through social intermediation (as just described by Grameen Shakti), can facilitate

women’s access to credit.

Other design characteristics that contribute to women’s access to credit have been identified in

South Asia as (Bennett and Goldberg, 1993):
• Training services that recognize the economic constraints and cultural barriers faced by

women clients;

• Incorporation of women staff members in both promotion and delivery of project services;

and

• Use of community networks and self-help groups.

Some recommendations on gender and village power

First, there is so much that we don’t know because we do not have information by gender. If

you take one message home from this presentation, please take this one: disaggregate by

gender. I think you will discover some very interesting and useful findings when you look

separately at the differential activities, roles, preferences, constraints, participation, and access

by women and by men. Though we often focus on women’s needs because these have been

neglected in the past, probably there are gender issues that relate specifically to men’s roles

and needs, too, that should be explored.3

In addition to analysing separately what women and men do, it is important to look at the

ways they work together in energy activities such as construction and maintenance and

household decisionmaking. The interrelationships between men and women in community and

other organizations also bear examination.

We talk about the market demographics of renewable energy: how are we going to provide

rural energy products if we don’t know who our customer, who our client is, and how to best

target HER? I would like to issue a challenge right now to each and every presenter that

follows, to disaggregate by gender in their presentation.

We need to know for example, in market surveys, are women or men the customers? I was

interested to see in Richard Hansen’s talk yesterday that all the SHS customers he showed in

the slides were women. If the customers are women, do they have access to cash income that

will allow them to purchase the energy system? Who controls the income and who makes the

decision in the household to purchase energy appliances? We have to think of how to

structure credit programs so they will be accessible to women.

We have a session on financing. Tell us, what share of your loan portfolio is made up of

women and what share is men? What are the repayment rates for women and for men? We

know that women have an excellent credit record in micro-credit schemes generally; is the

same true for renewable energy financing?4

 

3

 For example, in some areas men are more interested than women in street lighting, because they go out more

at night and are victims of violence more; men often put a high priority on children’s studies; men tend to use

electricity for small tools operation in income-generating activities and therefore need higher wattages; and the

common initial PV application of lighting and entertainment uses in drinking establishments in remote

villages could encourage an increase in male alcohol consumption and absence from the household.

4

 One of the few renewable energy credit programs to target women is in the Indian Renewable Energy

Development Agency (IREDA). Although in operation just over a year, preliminary evidence suggests high

repayment rates by women.
Later today we are talking about the role of electric utilities in rural electrification, power

supply options, and service models. What have been the impacts of these approaches on

women and on men, what have been the benefits? I would like to see disaggregated data on

benefits, not just on the number of installations or amount of loan disbursements.

Second, renewable energy projects and technology research need to specifically address

women’s needs for labour-saving, for time-saving, for improved health, for security, and for

income. Women use energy differently than men, and they have different energy needs.

Electricity can meet some, but not all of these needs. Cooking is women’s most critical

energy need. It is also the only household energy use whose replacement is going to have any

significant impact on carbon dioxide emissions and global climate change. Please, with all due

respect, stop telling me that solar home systems are going to decrease deforestation or reduce

global warming. It just ain’t so.

Thirdly, we need to ensure women’s equal access to credit and training in village power

projects. Larry Flowers [International Programs, NREL] put up a list yesterday of

institutional factors that are constraints to renewable energy promotion - credit, training,

cultural factors, and so on. All of these constraints are exacerbated for women. Women are

less literate than men, they have less access to credit, less access to information, etc., etc. So

we need specific approaches to reach women.

There has not been much time today to talk further about access by the poor to renewable

energy. We may notice however that the poor (in addition to more often being women)

generally share many characteristics with women: a lack of disaggregation of access and

benefits of energy technologies targeted to them; a high proportion of total energy used in

cooking and meeting basic needs; inequitable access to credit and education; and so on.

Hence many of the approaches required to reach women will also facilitate access by

marginalized groups generally to renewable energy.

Fourth and finally, we have been talking a lot about partnerships. We need to build alliances

and create a dialog between renewable energy and gender, at the research level, at the

planning and programming level, and at the political level. There are some interesting recent

initiatives to do this, such as ENERGIA, the International Network on Women and Energy,

where a quarter of the 1000 members are men. Energy programs, such as UNDP/SEED and

NREL, are also initiating activities on gender and energy.

The political element was mentioned several times yesterday. Women are a powerful force for

social change, and renewable energy is about social change. Women have been highly

commited and politically astute, at the forefront of the anti-nuclear movement, the peace

movement, the ecology movement globally: there is an obvious congruence of interests

around renewable energy. We need to build these partnerships.
References

Ahiataku-Togobo, Wisdom, Ministry of Mines & Energy, Accra, Ghana, personal

communication, Florence, Italy, 25 September 1998.

Barua, Dipal Chandra, “Grameen Bank’s Experience with Energy Related Microenterprise

Development”, Proceedings of Village Power ‘97, April 14-15, 1997, Arlington, Virginia.

Marilyn Carr, Blacksmith, Baker, Roofing-sheet Maker...Employment for rural women in

developing countries, IT Publications (London, 1984).

Cecelski Elizabeth, “From Rio to Beijing: Engendering the energy debate,” Energy Policy vol

23, no 6, pp. 561-575 (July 1995).

Debal, Prava, Indian Renewable Energy Development Agency Limited (IREDA), personal

communication, Florence, Italy, 23 September 1998.

Dignard, Louise and Jose Havet, eds., Women in Micro- and Small-Scale Enterprise

Development, Westview Press (Boulder, 1995).

Dutta, Soma, Ibrahim H. Rehman, Preeti Malhotra, & Venkata Ramana P., Biogas: The

Indian NGO Experience, AFPRO-CHF Network Programme, Tata Energy Research Institute,

New Delhi, 1997.

Farhar, Barbara C., “Gender and Renewable Energy: Policy, Analysis, and Market

Implications,” Paper for the World Renewable Energy Congress-V, Florence, Italy, September

20-25, 1998 (NREL, Golden, CO, 1998).

Floor, Willem and Robert van der Plas, CO2 Emissions by the Residential Sector:

Environmental Implications of Inter-fuel Substitution, The World Bank (Washington, DC,

1992).

GTZ, Blockbusters or Shelf Warmers? Approaches for the Successful Dissemination of

Improved Household Technologies, GTZ Household Energy Program (Eschborn, 1995).

Peskin, Henry M., Willem Floor and Douglas F. Barnes, Accounting for Traditional Fuel

Production: The Household Energy Sector and Its Implications for the Development Process,

Industry and Energy Department, The World Bank (Washington, DC, 1992).

Reddy, Amulya, “Energy for Women and Women for Energy: Empowering women through

energy entrepreneurship”, ENERGIA News, Issue 1, Dec. 1996.

Solar Electric Light Fund (SELF), “SELF and Vietnam Women’s Union Host Vietnam’s First

National Workshop on Solar Rural Electrification,” Proceedings of Village Power ‘97, April

14-15, 1997, Arlington, Virginia.

van Wijk-Sijbesma, Christine, Gender in Water Resources Management, Water Supply and

Sanitation: Roles and realities revisited (International Water & Sanitation Centre, The

Hague, 1998).
United Nations, The World’s Women 1995: Trends and Statistics (UN, New York, 1995).

UNDP, Energy After Rio: Prospects and Challenges (UNDP, New York, 1997).

Wides, Laura, “Gender Lessons from Community-Based PV Projects in Rural Guatemalan

Villages,” ENERGIA News vol 2 issue 2, Feb. 1998.
GENDER AND POVERTY CHALLENGES

IN SCALING UP RURAL ELECTRICITY ACCESS

Elizabeth Cecelski*

Paper Presented at

VILLAGE POWER ‘98

Scaling Up Electricity Access for Sustainable Rural

Development

6-8 October, 1998

World Bank, Washington, DC

* Bahnstrasse 24, D-51688, Wipperfürth, Germany, tel:

+49 2267 82050, fax: +49 2267 880762,

Email: ececelski@t-online.de
SUSTAINABLE RURAL ENERGY DEVELOPMENT:

1. EQUITABLE GROWTH - FOR ALL BUT ESPECIALLY FOR POOR AND

WOMEN

2. ENVIRONMENTAL PROTECTION/REGENERATION

3. SELF-SUFFICIENCY (INSTITUTIONAL AND FINANCIAL

1990S GLOBAL ENERGY AGENDA

OBJECTIVES:

1. Reduce carbon dioxide emissions to meet Kyoto targets.

2. Increase energy for growing populations and higher incomes.

SOLUTIONS ARE TECHNICALLY MATURE & COMMERCIAL:

1. Energy efficiency

2. Renewable energy

HOW?

Commercial, market approaches.

Overcome market barriers
WHAT ABOUT THE POOR? THREE APPROACHES:

♦ ENSURE ACCESS BY POOR THRU SUBSIDY OR COMMUNITY

APPROACH?

- energy key to livelihood strategies

- equity: with irregular/unreliable incomes, poor can’t invest in more

efficient appliances or buy in bulk = poor pay more for energy

Problems:

- subsidies may not be sustainable

- community/NGO approach is risky, time-consuming, input-intensive

♦ OFFER CREDIT, OVERCOME MARKET CONSTRAINTS?

- most optimistic credit scenario for SHS: 50-75% of rural households

(still leaves 25-50% without electricity)

- possible perverse effects: debt, increased household energy

expenditures, loss of investment

♦ IGNORE THE POOR - THEY CAN’T AFFORD RURAL

ELECTRIFICATION?

- let rich take risk of new technologies

- some poor will finance thru gifts, remittances, savings societies
Time allocation to survival activities among

women and men (hours per day)

__________________________________________________

Activity Indonesia Burkina India Nepal

___________________________Faso____________________

Firewood collection

Women 0.09 0.10 0.65 2.37a

Men 0.21 0.03 0.57 0.83a

Water hauling

Women 0 0.63 1.23 0.67

Men 0 0 0.04 0.07

Food processing

Women 2.72b 2.02 1.42 0.70

Men 0.10b 0.17 0.27 0.20

Cooking

Women - 2.35 3.65 2.10

Men - 0.01 0.03 0.38

Average total work time

Women 11.02 9.08 9.07 11.88

Men 8.07 7.05 5.07 6.53

------------------------------------------------------------------------------

a

Includes grass and leaf fodder collection.

b

Includes cooking.

Sources: Tinker, 1990 and Hotchkiss, 1988, in Cecelski, 1995.
Women-headed households, 1990 census (%)

Developed regions 24

Africa

Northern Africa 13

Sub-Saharan Africa 20

Latin America and Caribbean

Latin America 21

Caribbean 35

Asia and Pacific

Eastern Asia 21

South-eastern Asia 18

Western Asia 12

Oceania 17

Source: UNDP, 1995

Home Lighting/Connection Point Preferences of Women & Men,

Biogas Village Power Project, Ghana

Women Men 

Kitchen In front of house

(for preparing food) (for entertaining friends, cards)

Work room Music/TV

(for working on incomegenerating activities at night)

Back of house by bathroom

(for bathing children at night)

Source: W. Ahiataku-Togobo, Ministry of Mines & Energy, Accra.
WHAT ABOUT COOKING?

• Women’s largest single energy use

• Time-consuming (5-6 hours/day compared to 1-2 for fuel collection)

• Negative health effects (respiratory & eye diseases)

• 80% of household energy consumption and largest single rural energy use

in low-income countries.

• Unless cooking needs are addressed, positive impacts on deforestation,

women’s health & time will be minimal.

• Electricity does not address rural cooking needs.

Options for meeting cooking needs in rural electrification programs:

• Encourage electric cooking with excess hydropower (China, Nepal)

• Develop low-wattage and low-cost appliances (cookers in Nepal, irons and

kettles in South Africa)

• Promote non-electric options along with electricity (SHS/improved stoves

in Guatemala, gas burners/cylinders by ESKOM in South Africa)

• Adequately resource now-marginalized household energy programs as

part of integrated rural energy planning

High priority needs for rural women that could be met by electricity:

• Drinking water pumping and purification

• Cooking where feasible e.g. small hydro, low-wattage appliances

• Food/agricultural processing e.g. grain grinding, oil extraction

• Security - street & home lighting

• Home lighting in work and study areas
WOMEN NEED CREDIT

• Access to credit: A barrier to renewable energy technologies, exacerbated

for women.

• Women receive only about 10 per cent of credit from formal institutions.

• Women need credit for renewable energy:

- as end-users

- in micro-enterprises

- as energy entrepreneurs

• Women use additional income for food, school fees, clothes for the

household.

• Women have an excellent repayment record (90-100% in micro-credit

programs).

Women may logically be appropriate renewable energy entrepreneurs for

household and small-scale industry because:

• Women are users of these devices so may be more sensitive to customers’

desires e.g. women potters produce & market 11,000 stoves annually in

West Kenya

• Women are effective entrepreneurs with a good credit record e.g. in

Grameen Bank 94% of borrowers are women, with 98% repayment rate

(1996)

• Women can more effectively market to women, e.g. Vietnam Women’s

Union promotes solar home systems, collects payments
Business credit for women, 1993 data

 Women clients 

Portfolio Per cent Per cent of 

 (million US$) of total portfolio 

Commercial bank programmesBRI/KUPEDES Programme, Indonesia 1122.5 23 21.9 BPD/BKK Programme, Indonesia - 60 - Poverty lending banksGrameen Bank, Bangladesh 311.08 94 90 Self-Employed Women’s Ass’n (SEWA), India 0.462 100 100 BancoSol, BoliviaNon-governmental organizationsADOPEM, Dominican Republic 1.590 100 100 Kenya Rural Enterprise Programme 1.872 63 61 Credit Union Association, Ghana 0.254 30 - Affiliate network institutionsFINCA International, Washington, DC 13 96 - ACCION International, Washington, DC 200 54 - Women’s World Banking global, New York - 97 - Source: Women’s World Banking in UN, 1995.
Credit programmes accessible to women have:

• Frequent & flexible repayment schedules• Alternative collateral requirements• Low transaction costs, in money and time• An informal banking atmosphere where women are respected• Simple loan application procedures to accomodate illiteracyDesign characteristics that contribute to women’s access to credit:• Training services that recognize the economic constraints and cultural barriers faced by women clients.• Incorporation of women staff members in both promotion and delivery of project services.• Use of community networks and self-help groups.
RECOMMENDATIONS FOR VILLAGE POWER

1. Disaggregate & analyse by women and men, e.g.

* market surveys* loan portfolios* impact evaluations* stakeholders

2. Address women’s needs for labour- and time-saving, security & income, especially:

* cooking* water pumping & purification* street lighting* home lighting where women work* agricultural processing

3. Ensure women’s equal access to credit & training in village power projects.4. Build alliances between renewable energy organizations & women’s organizations.
Village Power ’98

11:30-13:00 Panel Discussion: Role of Electric Utilities in

Rural Electrification

- Chair, Allan Hoffman, U.S. Department of Energy

•Good Practices in Grid-Based Rural Electrification - Doug

Barnes,World Bank

•Decentralized Rural Electrification - Wolfgang Mostert,

Consultant

•Utility Challenge for Distributed Generation - Carl

Weinberg,Consultant

•Utility Response:.

- Edison Technology Solutions - Jim Reilly

- EJSEDSA in Argentina - Daniel Angel Sandoval

- South Africa ESKOM - Thulani Gcbashe

- Arizona Public Service (APS) - Peter Johnston

- NRECA - Pete Smith
Best Practices and Grid Ru

Electrification

Preliminary Evidence from Selected Case S

Doug Barnes

The World Bank
Reason for Examinin

Q Failures have been highly publicizedQ Successful programs provide lessons t

often are not replicated by new progra

Q Pace of reaching 2 billion people rema

painfully slow

Q Presentation: Focus on dealing with

problems faced in expanding service, benefits

Q Renewables face many of same proble
RE ProblemsTo Be So

Q Rural areas involve dispersed populations and difficul

– High capital costs (requires capital subsidy/cross s– High operating costs (bill collection, line maintena

Q Customers are often poor

– Customers cannot afford full upfront lump sum co

costs

– Low load and poor load profiles (evening only, low 

Q Political interference in operation of rural distribution 

– Distortion of electrication extension plan– Interference with pricing, bill collection, disconnec

policy
RE ProblemsTo Be So

Q Main power companies have institutional difficu

meeting special demands of rural distribution

Q Local community level problems often are not

addressed (right of way problems, potential thefof bill payment, lack of knowledge of potential etc.)

Q Power sector reform poses unique problems for 

electrification--potential for skimming the cream leaving rural people without service
 Draft Case Studies Comp

Q Thailand--Gov initiated. WB Supporte

– 80-85% of rural HH have electricity– Regional distribution company financially viab

Q Costa Rica--USAID/NRECA assistan

– 85% of rural HH have electricity– Coops developed when private sector would no

Q Ireland--Some of same problems as DQ Philippines--Initial USAID assistance

– Successful cooperatives out of 119 cooperative
High Capital Cost o

Q Cost Rica--Concessional borrowing, low co

system design (single phase), and consumerconnection fees

Q Ireland--Capital grants, fixed charged on bi

rather than connection charge, low cost des(three Phase backbone with single phasedistribution)

Q Thailand--Concesional borrowing, cross-su

from bulk power rate, standardized procure
High Operating Cost o

Q Philippines--actively minimize losses, high 

barangay bill collection (meter banks), urbaare in service territory, cross bulk power sufor isolated island systems

Q Thailand--actively minimize losses (especia

theft), high bill collection rate through villaleaders, cross subsdidy from urban to rural nationwide tariff, also bulk tariff cross subs

Q Ireland--After initial capital grant subsidy f

system expansion, system required to befinancially viable
Customers Are 

Q Rural people cannot pay full upfront costs

– Ireland--No upfront costs for rural customers but fixed ch

regular bill (interest on capital, loan repayments, depreciadministrative costs)

– Costa Rica--Require up-front payments for service drops

charge was same for group; tariffs contain capital charge

– People can afford greater upfront costs than normally ass

Q Low load and poor load profiles

– Thailand--careful system extension planning prioritized h

consumption areas, encouraged productive loads, load prlifeline rates based on load profile (ie less than 25 kWh)

– Philippines--Accepted low load and charged high tariff
Example: Thailand’s Rate St

Figure 6-1 Residential Tariff Schedule (in US Cents)

Tariff schedule includes a fixed charge and the increasing block rate:

< 150 kWh a fixed charge of US Cents 20 for first 5 kWh or less;

> 150 kWh a fixed charge of US$3.56 for the first 35 kWh or less

0.020.030.040.050.060.070.080.09

0.1

0 20 40 60 80 100 120 140 

Monthly Kilowat Hour Blocks

151 to 400 kWh at 0.089 per kWh

More than 400 kWh at 0.10 per kW
Political Interfer

Distortion of electricity connection plan

– Thailand--Developed objective selection criteria to rank 

allowed communities to jump to higher rank if they paid village connection charges, village selection plan was incnational economic development plan

– Costa Rica--Standard procedures for least cost expansion 

by regulatory agency, customers have to pay for extensiotoo far away from system

– Ireland--Priortized the parishes based on system proximi

proportion of households willing to take a connection, litpolitical interference
Institutional Iss

Focus on Solving Probl

Main power companies have difficulty with special de

of RE: Special institutions focused on problem sol

– All case studies countries had special institution for RE– Thailand--Office of Rural Electrification in PEA which d

with distribution. It also had its own budget and could raand loans for distribution

– Costa Rica--Development of rural cooperatives specializi

distribution. They could raise their own funds through logrants.

– Ireland--Rural Electrification Office for implementation w

separate accounts budget (including 50 percent capital subThere was a career structure for RE Office. Once system Rural Electrification Office turn the system over to ESB fserving the customers
Community Level Prob

Local community ownership to avoid right of way pr

theft, vandalism, low load development, etc.

– Thailand--Community meetings concerning electricity pl

before electricity came to community, local leaders to coand report problems, had community agree to provide rigand settle disputes internally

– Ireland--Rural electrification committee formed in advan

electricity (Parish priest, school teachers, etc.) to do prepwork and problem resolution.

– Costa Rica--Cooperatives used rural electrification comm

community laison. People are automatically members of cooperative when they pay for their service initiation. Prexplain service options, meeting on time schedule, constrissues, etc.
Power Sector Reform an

Q No experience yet from case studiesQ Eliminates the possibility of cross-subsidies unless 

territories contain both urban and rural areas

Q Limits coverage to regions that will be profitable?Q Protection needed for poorest households? (low ac

charges, lifeline rates, low cost wiring, etc.)
Conclu

Q ??????
1

Scaling-up Micro-Hydro, Lessons from Nepal

and a few Notes on Solar Home Systems

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Wolfgang Mostert 1

1. Introduction- Definitions

Small-scale hydropower in Nepal is divided into micro-hydro (<100 kW), mini-hydro (0.1-1

MW), and small hydropower plants (1-10 MW).

The small hydropower plants are usually connected to the national grid and are often privately

financed and owned. Scaling-up small hydropower means to develop proper regulatory

frameworks for independent power producers (IPPs) and to streamline the licensing and

concessions systems for the use of water rights for power production and other competing

purposes (irrigation, agricultural uses, potable water).

Mini-hydro plants are connected to the national or to an isolated grid. They can be developed and

owned by the national power company, the community or by private investors. Scaling-up the use

of mini-hydro for connection to the national grid is similar to the small hydropower, scaling up its

use for isolated grid is similar to micro-hydro, which is discussed below.

Micro-hydro comprises not only “grid-connected plants for village electrification 2

”, but also

“mechanical-purposes only” plants and “mechanical cum electricity add-on 3

” systems.

2. Micro-Hydropower in Nepal

In Nepal, 85 percent of the population lives in rural areas. The national electrification rate is 13

percent, but above 80 percent in the cities. The low electrification rate provides a large market to

se served by micro-and mini-hydros and by solar home systems (SHS). The power forecasts

prepared by NEA (Nepal Electricity Authority) foresee that 30 percent of national households will

be connected to the grid by the year 2020. Urbanisation is one causal factor. Rural electrification

develops mainly via the extension of the national grid in the Southern Lowlands, the Terai, where

 

1

 The paper is based on insights gained by the author working as consultant to DANIDA for the preparation of the

first five-year “Nepal Energy Sector Assistance Programme 1999-2003”. 2

 The term “pico-hydro” has also been used for the very smallest of plants, which are currently being standardised

and marketed under the term “peltric sets”. These are produced in the range of 0.5 to 3 kW to cover the demand

for electricity of a few households.

3

 The term “Add-on” is used for the case that a generator is connected to the turbine of an agro-processing unit,

normally by a belt drive. The turbine is then used for agro-processing during the day, and for electric light

generation during the evening/night.
2

40 percent of the national population will live around 2005. In the more inaccessible Hill and

Mountain regions rural electrification takes place primarily via isolated grids.

Nepal has a feasible hydropower potential of around 80 GW. The political and expert opinion

concerning the best strategy for the exploitation of this potential and the promotion of national

electrification is divided into two camps. One side argues for the development of large-scale

hydropower destined for exports to India with attached national grid electrification. Others argue

that the primary focus of hydropower policy should be on the development of micro-hydro power.

The latter technology is said to be relatively low cost, to rely on nationally manufactured

technology and be well suited to provide power to the population in the isolated hills and

mountain regions.

With regard to the preconditions for a successful promotion of micro-hydro, Nepal has potentially

a lot going for it on the sides of supply and demand. 63 of Nepal’s 75 districts have potential for

hydropower. With the help of INGOs since the 1970s, Nepal has succeeded in building up an

interesting manufacturing base capable of manufacturing or assembling all micro-hydropower

components except the generators for micro-turbines up to 300 kW. The Government supported

the development of micro-hydro on a stop-go basis through various technical and financial

support programmes ever since the 1980s. At present, the Government budget provides a 75

percent subsidy to the electrical equipment parts of investments to micro-hydro projects in

districts defined as being very remote, and 50% of electric equipment costs in other districts. This

amounts to 20-30 percent of the total investment. Turbines, penstocks, waterways etc. are not

subsidised under the budget line, but village electrification schemes have squeezed additional

subsidies out of donors and development funds. The subsidy rates are now being reviewed by

HMG, following a proposal to increase subsidies to 50% of total plant cost.

Originally, NEA was entrusted with the task of planning and implementing small isolated grid

projects. The public sector has set up 35 of the 36 mini-hydro plants mainly to supply district

head quarters and market centres; five plants are connected to the national grid. Most of the minihydro plants connected to isolated grids are owned and managed by NEA. But NEA has realised

that its cost structure and approach is too expensive for mini-hydro projects, and has withdrawn

from mini-hydro. NEA has leased five of its isolated grids to private operators, and the

development of new isolated grid projects is left to local private / municipal initiative. However,

the ideal organisational model for local ownership and operation of isolated grid systems has not

been identified yet. The installed capacity of micro-and mini hydropower can be seen below,

which shows the modest use of micro-hydro for electricity generation.
3

Installed Micro-and Mini Hydropower in Nepal

Technology Total number Mechanical

purposes

Add-on

electricity

Electricity

only

Installed

capacity

Ghatta 1) 25,000(3505) 25,000 1 0 12 MW

Peltric sets 2) 250 250 0.25

MW

Micro-turbine3) 950-1000 800 150 30 9-10

MW

Mini-turbine 4) 36 36 8.5 MW

 1) Traditional water mill. 2) 0.5 to 3 kW integrated turbine and generator sets, 3) >100 kW, 4) 100-1000 kW; the

number of mini-turbines mentioned in the literature ranges from 20-36. 5) "Improved ghattas" that are installed.

Nepalese legal Provisions on hydro-power development provide a number of fiscal and

administrative incentives for plants with a capacity less than 1000 kW:

• No licence is required for conducting surveys or for building and operating plants. For plants

between 100 kW and 1000 kW, a notice shall be given to the concerned agency before

commencing work on the project.

• No royalty shall be imposed on the electric power generated.

• Exemption of income tax is granted.

• The private producer may itself fix the selling price of electricity.

• In case a licensee is going to distribute electricity in an area where a plant smaller than 1000

kW is already generating and distributing electricity, the licensee is obliged to purchase the

existing plant and distribution system, if the owner wishes.

Although NEA has withdrawn from providing support to micro-and mini-hydro development,

there are still a number of important institutions that support initiatives in the sector:

Public institutions:

• WECS, the Water and Energy Commission Secretariat, under the Ministry of Water Resources,

has provided an inventory of approximately 200 potential sites for MH, meant as assistance to

developers 4

. The objective is to identify the 10-15 most viable micro-hydro power sites in

each of the 63 districts having potential.

• The Alternative Energy Promotion Centre, AEPC, was formed late 1997 as an institution to

promote development and monitor activities within the alternative energy sector, including

Micro Hydropower 5.

• The Remote Area Development Committee, RADC, has been given the task of establishing

MH plants at selected sites in certain districts at or near the border of Tibet, designated Very

Remote Areas, under the “Integrated Rural Community Development through Village

Electrification Program” 6

.

 

4

 The practical usefulness of the inventory appears to be limited.

5

 AEPC is not yet fully operational. Danida provides institutional strengthening support to AEPC by special

funding.

6

 Faced with feasibility studies that showed the projects to be neither economically nor financially viable, the

reaction of the government has typically been “we do it anyhow in order to maintain a regional balance of service

for reasons of equity”.
4

INGOs and NGOs

• United Mission of Nepal, UMN, has promoted the build-up of manufacturing capabilities in

micro- and mini hydro-turbines by founding local manufacturing firms and by providing

technical assistance to users and manufacturers through the company DCS-Development

Consultant Services, founded by UMN.

• ICIMOD - International Centre for Integrated Mountain Development and ITDG,

Intermediate Technology Development Group, (active in Nepal since 1979) provide conceptual

and policy-making contributions.

International donors

• Swiss bilateral aid - through Swiss Association for Technical Assistance (SATA), Swiss

Development Corporation (SDC) and the Swiss Foundation for Technical Cooperation

(Swisscontact) - has been involved in developing village-based isolated grid schemes.

• German bilateral through GTZ (Gesellschaft fur Technische Zusammenarbeit) and German

Development Service (DED) has identified options for private financed mini-hydro power

projects for production to the national grid. DED supports the RADC programme. The result

is published in the form of a “Master Plan”.

• Danish bilateral aid, Danida has included support to micro-hydro development as one of five

components in its 1999-2003 Nepal Energy Sector Assistance Program.

• UNDP is involved in mini- and micro hydro through the Rural Energy Development

Programme (REDP). The REDP is active in ten rural districts. It encourages the individual

District Development Committees (DDCs) to establish a district level authoritative office for

promoting decentralised bottom-up rural energy planning and to create a District Energy Fund.

At the village level, the REDP promotes the establishment of community organisations (COs)

of male and female separately. The REDP has conducted technical feasibility surveys of more

than 80 micro-hydro sites in the first five districts it was active in, and found 42 sites

technically feasible.

Yet despite all support, progress is not satisfactory. Investments in new micro-hydro plants are

stagnating or falling and existing plants experience operational and institutional problems. A study

on the functional status of MH demonstrated that:

• 75%-80% of the plants had loans overdue

• Some 30% were not operating for a variety of reasons

• Poor site selection, inadequate/inaccurate surveys, wrong size, poor installation, faulty

equipment.

• Plants affected by floods and slides.

• Poor estimation of hydrology. Surveys conducted in the rainy season is one reason.

• Uneconomic canal length, bad canal design

• Civil works usually neglected.

• After breakdown of generator, many owners had not been able to replace it.

• Wrong estimation of raw materials, of demand, of end use possibilities, oversized plants, overestimation of tariff collection, inappropriate rates, ignorance of competition with diesel
5

• The plant factor of micro- and mini plants is 0.2 on average. Lighting for 4-5 hours can

theoretically give maximum plant factors in the order of 0.15 to 0.20. The use of one mill for

some hours per day can theoretically double the plant factor, but in practice most micro-plants

have plant factors lower than 0.25.

Some 11 manufacturers produce turbines, which is an impressive achievement. Anecdotal

evidence, however, suggests that the quality of the equipment has declined during the last 10

years. And the cost of the equipment seems to have increased faster than the rate of inflation, a

fact, which has reduced the impact of the subsidies.

During the 8th Five Year Plan (1993-98), the Government hoped that 5 MW of hydropower

would be developed. The result was far below. It is obvious, that the present strategy of the

Government does not lead to “scaling-up”. In order to find out what can be done, it is necessary

first to look at the technological characteristics of micro-hydro and next at the socio-economic

characteristics of the village community.

3. Technical Characteristics of Micro-hydro

Compared to the level of development in the isolated communities, where it is introduced,

hydropower represents a very advanced technology in terms of hardware and in terms of

operational requirements. The three available technologies are the peltric units for single

ownership, the micros for smaller communities and the minis for larger communities (or group of

smaller communities). As one moves from one to other, the technical sophistication of the

technology, including the demand for highly skilled manpower increases.

The civil technology of micro-hydropower plants is simpler and cheaper in terms of initial

investment than in the case of mini-hydro. Dams and intakes are made of concrete in the case of

mini-hydro plants, and of earth/stones in the case of micro-hydro. The civil technology allows

making intensive use of “free” labour by the local community for construction and annual

maintenance. This reduces the cost of initial investment, ranging from US$1200 to 2500 per

installed kW in micro-hydro projects 7. But it adds to annual O&M costs, which can vary from 3

to 50 percent of original investment - and leads to the shutdown of the plant and loss of electricity

production during15-40 days per year, when intakes and canals have to be rebuild following

destruction by monsoons and landslides. And although the cost of investment per kW compares

favourably with large plants, the low plant factor implies that energy costs will be comparatively

high for micro hydro 8

.

The organisational requirements are substantial during all phases of project identification,

preparation, investment and operation, and not sufficiently satisfied:

• Site surveys and feasibility studies. It is normal practice in Nepal that micro-turbine

manufacturers perform the survey and project assessment in which the turbine and generator

 

7

 More often than not there are no roads to the site - several days by foot may be the only way to reach the nearest

road. Transport cost will be a be a significant part of total plant cost, up to 30% - 40% are reported.

8

 Reported costs for Nepalese mini-hydropower plants are in the range of USD 2,800 - 7,600 per kW.
6

capacities are decided. The manufacturer receives a nominal fee for his survey, and has to

recover the actual costs in the turbine price. A manufacturer should ideally produce equipment

from specifications given by others - he cannot be expected to be technically capable of

performing total project assessment, nor can he be expected to be totally unbiased in his

selection of turbine size. Stream flow assessment is particularly unreliable. There is a lack of

data on water resources for micro-hydropower resources. Measurement technique is a

problem by itself, and if made outside the dry season leads to overestimation of flow. Socioeconomic aspects are not covered in detail. A too optimistic demand forecast is a frequent

cause of financial problems. In village electrification projects, the assumption is often made

that even the poorest of the population will at least afford one light bulb as a minimum, since

they are expected to make savings on kerosene. In agro-processing projects, competition for

services is underestimated.

• Project survey. The Agricultural Development Bank, ADB/N, in charge of financing

arrangements on behalf of the government, does not possess sufficient expertise or resources

to assess the projects technically.

• Investment. The civil works during construction (in particular intake and canal construction,

but also poles and distribution lines) require to organise local labour on a “volunteer non-paid”

basis in order save on the monetary cost of construction.

• O&M. Routine maintenance requires a dedicated and reliable daily operator:

- Intakes for micro-hydro are nearly always of the “temporary” type, meaning that

continuous (daily) maintenance and yearly (or more often) cleaning out of sand and stones

in the intake pond will be necessary.

- Sediment will enter the intake and may cause rapid erosion of the turbine runner.

Chambers for sedimentation of pebbles and sand (sediment traps) are necessary. The

correct design of these requires knowledge, and for successful operation they need to be

inspected and cleaned regularly.

- The design, slope and alignment of the headrace, be it a canal or a closed conduit,

requires some skill in hydraulic design and an eye for topographical or geological

conditions that may cause maintenance problems.

- The forebay and/or the peaking reservoir must be be cleared periodically for

sedimentation.

• Repairs

- The distance from the villages to repair facilities and competent experts, who can offer

inspection services, repair, advice and training is a problem.

- The major annual repairs following landslides and monsoons demand village

mobilisation.

Thus, although micro-hydro technology may be relatively simple in terms of hardware, its softorganisational requirements are anything but simple.
7

4. Characteristics of the potential target group for micro-hydro

Micro-mini-hydro projects are located in rural areas at considerable distance from electric

transmission lines and distribution network. Access from nearest road will be by foot or mule,

with a duration of a few hours to several days. The economic conditions in the settlements vary

from very poor at subsistence level to relatively well off communities at or close to popular tourist

routes or trade centres. The communities can differ considerably with regard to the degree of

caste homogeneity and ethnic diversity of the population.

The household demand for electricity in the isolated communities and the ability and willingnessto-pay for electricity is low. Household metering equipment is not installed in micro-hydro

projects. Households pay according to the number of light bulbs they use or according to their

demand for capacity - a fuse / cut-off device will typically limit the maximum demand of a

household to 100 W. Monthly household charges are NRS 0.5-2 per W capacity, or NRS50-200

per month (US$0.74-2.94, or roughly US$0.05-0.20 per kWh of consumption) 9

. This is far from

enough to cover the cost of supply; and although projects receive substantial investment subsidies,

the revenue is often insufficient to cover the cost of O&M and repairs and to repay loans received

from ADB/N. In several projects, households refused to pay agreed monthly charges, once the

investment had been made. The project promoters then felt forced to accept lower and lossmaking monthly rates rather than no revenues.

Lack of knowledge in book-keeping and accounting is a problem, which is encountered in almost

all micro-hydro projects, whether the plant is for agro-processing only or is used for household

electrification. Revenue above the cost of O&M is regarded as profit and treated so.

Four types of ownership-developer models for micro-hydro electricification were tested in Nepal:

1. Promotion, development, ownership and management by national power company NEA

2. Promotion and development by outside (I)NGO (sometimes assisted by the local district

development committee), ownership and management by local community

3. Local entrepreneur builds, owns and manages the micro-hydro plant primarily for agroprocessing purposes and sells electricity to community households

4. Outside (I)NGO promotes and develops the micro/mini-hydro power plant, a jointly INGO /

local Government / local community owned limited liability company owns and manages the

plant

No ownership model has come out as a clear winner. A clear lesson is that power companies such

as NEA are not geared to handle micro-hydro projects. They think to big and too quality standard

conscious during the design stage and their staff is too costly during the operation phase.

Individual entrepreneur ownership has the advantage of providing a productive demand for

 

9

 The 400 kW Salleri Chialsa power plant, supported by Swiss bilateral aid has a more sophisticated billing system,

consisting of three components. (i) The initial connection fee increases with the amount of power allowed from

NRS250 for a 100W. connection to NRS1500 for loads higher than 4 kW. This Connection fee is automatically

transformed into company shares. (ii) The fixed rates for admissible power are subdivided into eight levels, from

NRS50/month for the first 100W connection to NRS500 / month for the highest power level. (iii) The energy

charge per kWh ranges from NRS0.9 to NRS3.0.
8

power with household electricity demand being an add-on. But it experiences more problems

about water use rights and makes it more difficult to organise "free labour" for civil construction

and for major repairs. Furnishing lighting to a larger group of customers must involve the

engagement of the community in some manner, and a strong agent must be present to enforce

rules. Community ownership calls for a long, intensive period of community awareness building

(one to two years) before any infrastructure investment is made. The case system of Hindu

society, as also NRECA found out during the 1970s in India, is not conducive to the

establishment of electricity co-operatives. If, in addition, the community is ethnically

heterogeneous, the task becomes "impossible". Only one experience with the corporate model

exists - a mini-hydro project, which received massive Swiss bilateral support to succeed.

The agricultural development bank ADB/N provides 5 to 7 years loans at a 16 percent rate of

interest to until 80 percent of the cost of micro-hydro projects. Even when revenues are sufficient

to cover the cost of amortisation ADB/N experiences problems with overdue loans in its loan

portfolio to micro-hydro projects. The relatively richer and politically best connected farmers

have the worst repayment records. ADB/N has a bad image among the rural population. The

dual role of ADB/N as rural technology promotion and rural credit agency blurs its role as a

professional financial intermediary. The rural population's willingness-to-pay normal credit rates

is negatively affected by the Government's use of ADB/N to channel direct investment subsidies

and interest rate subsidies to specific materials and technologies. Corruption in the public sector

is endemic in Nepal and ADB/N is affected also, helped by its near monopoly position in rural

credits. ADB/N has about 670 rural offices, the two most important competing banks have 20-30

each.

It can be concluded that a number of factors on the demand side block a wider penetration of

micro-hydro projects.

5. Towards scaling-up

Micro-hydro has two major built-in obstacles for scaling up:

• The technology is rather demanding in its requirements for organisational back-up and

support. Even the simplest case of a micro-hydro, the small peltric unit, involves technology

for which the owner/user may be totally unprepared. Yet, the technology is for use in isolated

areas, where supporting infrastructure is expensive to build up and difficult to sustain.

• Micro-hydro is investment intensive, but low in operating energy costs compared to diesel

power. Yet, the potential cost savings from low operating costs are not sufficiently

compensated in the isolated regions, where lack of a productive demand for power leads to

low plant factors. The cost of production per kWh is expensive, which, coupled with the low

purchasing power of the target population, makes it difficult to identify financially viable

micro-hydro projects.
9

It is easy to say at a general level, what the requirements are for scaling-up:

• The quality of the feasibility studies needs to be improved

• Local energy planning and community awareness building must be supported

• The system of subsidies must be made more effective

• Official regulations must define guidelines for tariff setting in isolated grids

• The monopoly of ADB/N in rural energy credits must be broken and guidelines be developed

for project appraisal and approval

• The locally produced equipment must be subject to standards and to quality control

• Service centres for technical backstopping and basic repairs must be established

• Training in O&M, fault identification, simple repairs, and book-keeping must be provided to

entrepreneurs investing in hydro-power plants and to key staff in community owned plants

• Productive use enhancement must be an integrated activity in projects receiving financial

support

• The manager of AEPC, the Alternative Energy Promotion Centre, should be offered training in

the principles of modern management, participatory planning and innovative schemes for

financing.

The devil is - as always - in the details and in the large scope of supporting initiatives that is

required.

Feasibility studies

There is general agreement among Nepalese experts that the quality of feasibility studies needs to

be substantially improved, and that this requires more qualified manpower and more subsidies.

Neutral experts, not manufacturers should prepare the feasibility studies, not by manufacturers. If

however, a subsidy of 75% is provided to this activity, then procedures must be defined (i) for the

selection of consultants (qualification requirements or certification, training), (ii) for setting a

maximum amount for the cost of the study (relating it to the number of consumers, or to plant

capacity), and (iii) for splitting the remaining 25% of the cost between the local entrepreneurs /

communities and the financing institution.

Support to local Energy Planning and Community Awareness Building

It is well known that a top-down approach is unlikely to result in local identification with the

project. All so-called experts pay lip service to the mantra that rural projects must be based on

bottom-up perceived needs and local financial commitment. The promotional efforts have, so far,

been top-down, nevertheless: institutions such as WECS make inventories of potential hydro-sites

after which attempts are made to persuade the local community that a micro-hydro electrification

project is what it needs. The ongoing UNDP/ REDP project is a valuable exception. That project

planning and development must start with resource assessment is obvious. The mistake is that the

information is not fed into a local planning process, but into the project identification process of

higher placed outsiders – either national institutions, (I)NGOs or donors.
10

The way forward is to get project proposals identified through local energy planning making use

of participatory planning techniques and receiving part-financing from locally available

development funds. At present, a structure for local energy planning does not exist. The

Government has started on a policy for increased decentralised decision taking and financing. The

District Development Committees and Village Development Committees now receive some

modest funds for local development financing. But this democratization process must be further

intensified, and technical assistance must be provided to the District and Village Development

Committees in energy planning and in participatory planning techniques. The latter is a powerful

method for awareness raising.

Direct and indirect Subsidies to Investments

Without subsidies, investments in micro-hydro will stagnate. Some micro-hydro turbines for

mechanical uses will be installed every year (they are not subsidised now). But use of hydro for

electrification purposes will be an exception and be almost exclusively in the form of add-on

electricity and peltric units. Progress in rural electrification based on micro-hydro power requires

direct subsidies for investments and feasibility studies and indirect subsidies for supporting the

build-up of professional advisory and training services. The direct and indirect subsidies are

mutually interdependent. Unless there is a sufficient level of investment in micro-hydro (need for

subsidy), there is no economic justification for setting up elaborate supporting services.

The tricky question for subsidy design is to find adequate comprises between (i) efficient

allocation of scarce resources, (ii) ease of administration, and (iii) local and regional equity.

The 50%/75% subsidy provided by the state budget to purchases of electric equipment amounts

to around 25% of project cost. Communities have been able to draw on other sources of grants to

increase subsidy levels to 50-80% of the cost of investment. Such high levels of subsidies are a

strong indication of misallocation of resources. If the 25% self-financing share expresses the

willingness-to-pay for electricity, then it is likely that villages have other investment priorities than

electricity. If they reflect skilful bargaining, they represent wasteful use of scarce subsidies. The

Government’s subsidy support programs should prevent subsidy shopping by insisting on

minimum levels of self-finance (including non-subsidised loan finance), of at least 50%.

The question has been raised whether the target of the subsidy should be extended to include the

total cost of investment, that is, also the cost of civil construction, of mechanical equipment and

of the turbines. So far these items have been excluded, as there is no commercial need to subsidise

micro-hydro plants that are used for agro-processing only (distortion of competition). Due to the

existence of multi-purpose plants, it was believed, that such subsidies could not be restricted to

electricity generating plants, but would automatically call for including “agro-processing only

plants”. In fact, it has been proposed already to include these. This is not necessary. One can

introduce a scheme, which pro-rates subsidies to the non-electrical parts according to the

expected use between agro-processing and household electricity demand.

A much discussed issue is whether the subsidy should be given as a percentage of total cost or in

terms of a fixed sum per installed kW capacity or per connected household. A lump sum subsidy
11

has the advantage, in principle, that the lowest cost projects are implemented first (which

presumably have the highest rate of return) and offers good transparency. The danger is that it

may lead to oversizing of the plant and/or cheating with the stated capacity.

A further equity issue is whether the extra transport cost associated with remoteness should be

subsidised. The same regions are already disadvantaged in terms of income (ability to pay for

electricity). The Government operates with two subsidy rates (50% and 75%) depending on the

region. That system can and should be refined, providing lump-sum subsidies to communities on

the more objective basis of days of walk from the nearest road to the project site.

In many donor-supported programs, interest rate subsidies are provided by revolving funds. That

policy should be discontinued or reconsidered. First, because interest rate subsidies introduce

distorting signals into the rural credit systems. Second, because it is known from subsidy

programs in general, that the incentive impact of an interest rate subsidy is lower dollar for dollar

than a direct investment subsidy.

Regulations for Tariff Setting

The Government / AEPC should issue regulations providing guidelines for tariff setting for two

reasons. To ensure the financial viability of community owned projects (adequate allocations for

major repairs and for loan repayments) and to reduce tensions in tariff negotiations between

entrepreneur-owners and the customers. It is easy to see from the table on page 2, that “electricity

only” plants are seldom, the majority of plants used for electrification are “add-on electricity” and

the peltric sets. Typically, electrification thus involves negotiations between a private plant ownerentrepreneur and the community on the tariffs. In principle, this can and should be left to market

forces. However, there have been several damaging disputes about tariffs. The guidelines cannot

eliminate these, but they may ease their intensity.

New Financial Intermediaries

With its 670 branches in rural areas, the ADB/N has been and is a logical collaborator in rural

development programs. The ADB/N, unfortunately, is not only part of the solution it is also part

of the problem. Donor programs in rural energy must look beyond the short term and make an

intensive effort to develop new rural financial intermediaries. The monopoly of ADB/N must be

broken, even though it costs lost time in the short to medium term.

Norms, standards and quality control

Whereas the opinion of manufacturers is divided, other Nepalese experts seem to be convinced of

the need for setting up a laboratory for turbine testing and quality control. The tricky question is

how such an institute can be made financially sustainable at the end of donor support. It is not

likely that the institute can price its services to manufacturers on the basis of full-cost coverage

without excessive consequences for the price of turbines.
12

Service Centres

At present, there are three service centres in Nepal for providing technical backstopping and

minor repairs to turbine owners (major repairs require that the turbine is brought back to the

manufacturer). Two other attempts have failed for financial reasons. The situation might have

been different, if the market for micro-hydro had expanded during the 1990s, instead of

contracting. But as it is, the commercial demand is insufficient to justify the creation of more

centres. A proposal has been made to finance the creation of 10 more centres under Danida’s

Nepal ESAP. A more viable approach may be to train existing workshops in rural areas to

perform such repairs and technical backstopping.

Training of entrepreneurs and of community operators

Experience has shown that entrepreneurs and operators of community owned plants need to get

more training in O&M, identification of technical problems and solutions, and in book-keeping.

Promotion of Productive Uses of Electricity

The active promotion of productive uses of electricity in rural electrification projects is becoming

a normal feature in developing countries. The practical results do not quite correspond to the

attention, which is given to the theme. But in view of the “free ride” of increasing the plant factor

in micro-hydro projects, promotion of productive uses must be an integrated part of micro-hydro

projects. The potential for this can be maximised if AEPC succeeds in establishing close

collaboration with agricultural irrigation and other extension projects.

Training to AEPC

The Alternative Energy Promotion Centre, AEPC was created late 1996, and became operational

in the beginning of 1998. AEPC was originally conceived and supported by (I)NGOs working

with rural energy issues in Nepal. The AEPC is set-up under the Ministry of Science and reports

to a Board of representatives from several ministries. The original intention of including private

sector and NGO representatives on the board was dropped, and the AEPC is already showing

characteristics of a traditional red-tape bureaucracy. Staff stability will be a problem, as public

sector salaries are very low. Yet, the AEPC was created in response to a perceived need for

coordination and should be strengthened as much as possible. Staff training courses will be

developed and implemented. Special care will be given to provide AEPC’s manager with training

in the principles of modern management, in participatory planning techniques and in innovative

financing schemes. Far too often, donor provide training in energy related issues – energy

economics, planning, technologies. The difficult role of AEPC, however, is to introduce proper

management and coordination!
13

Scope of activities and the time factor

The tasks, as shown above, are very comprehensive and the resulting investment level in terms of

MW will be modest. Yet, since the typical demand of the target rural households amounts to

100W at present, each cumulative MW of new capacity represents 10,000 households that have

received electricity.

The message is that the promotion of micro-hydro takes time. A donor wishing to provide

support to the sector should go in with a minimum perspective of 15 to 20 years, and preferably

30 years. The donor should be aware not to expect early results. The level of investment will not

increase substantially until several years after the start of the program.

6. A few Notes on the Promotion of SHS in Nepal

Three local manufacturers produce 35 Watt SHS of reasonable quality, and a 50 percent

Government subsidy has attracted around 6,000 applications for SHS, of which only a fraction

could be satisfied due to lack of subsidy funds. The rural situation in Nepal in many ways favours

the penetration of SHS:

• An important part of the population will for decades remain outside the reach of grid

connected electricity.

• The productive demand for energy of this group will be low for many years to come; the low

power output of SHS thus has no consequences.

• The technology is financially sustainable, as it permits consumer discrimination – only those

who can afford to purchase a system will do so.

• Sustainability depends only on a satisfactory level of after-sales service from the manufacturers.

The establishment of the latter, however, calls for a minimum level of consumer demand to make

investments in SHS promotion and maintenance services feasible. At present levels of income, it is

believed that demand – at unsubsidised levels will be insufficient to permit an adequate

development of such an infrastructure.

Assistance to the promotion of solar home systems (SHS) is another component of Danida’s

“Nepal 1999-2003 Energy Sector Assistance Program”. The specific details of the promotion

strategy are still being defined. But at present it looks, as if the component is going to have the

following features (subject to change):

• Danida will finance an open-ended subsidy to purchases of SHS during a five year period with

annually declining levels of support. Market based interest rates will be combined with a lumpsum subsidy, irrespective of the size of the system. 20W, 35W and 55W systems will be

marketed. The subsidy sum is pre-fixed for each of the five years and declines every year.

During the first year, the level of subsidy for a 35 W system is around 30 percent, declining to

10 percent during the last year.

• Only products of manufacturers that provide adequate after-sales service and that fulfil

quality norms will benefit of the subsidy. Hit-and-run suppliers are unwanted.
14

• Technical assistance is provided for the establishment of a solar test station that offers

technical advisory services to manufacturers of solar heaters and SHS, fixes standards for

supported equipment and monitors the quality of local products.

• For equity reasons, community and social institutions will be offered SHS at particularly

favourable rates. The build up of promotion and afters-sales in very remote regions may be

supported financially.

The programme expects to market 5-6000 SHS per year. At the end of the five year period it is

expected that market demand at that level can be maintained without further subsidies. The cost

of SHS at that time will be lower, a nation-wide structure for promotion and maintenance will be

in pace, and the demonstration effect of SHS in nearby homes will have a powerful motivating

demand.

Since Danida’s development assistance has a clear poverty focus, and the SHS benefit the

relatively richer community, the question was, whether subsidies to solar home PV-systems could

be justified? Proponents base the justification of the subsidy on two arguments:

• The first is cost reduction through “pump-priming”. The production, marketing and

servicing of PV-systems are subject to economies of scale. By expanding the market in an

initial phase, a minimum scale of efficiency is reached. This provides cost reductions that

stimulate demand and allow the subsidy to be reduced. Pump priming helps establishing the

minimum service infrastructure that allows PV-systems to provide a reasonable level of

reliability.

• The second justification is equity. Rural consumers living in areas, where a grid is

constructed, get a higher quality form for electricity and get their electricity subsidised. To

give subsidies to PV-consumers puts “isolated consumers” on an equal level. That the subsidy

benefits relatively richer consumers is defended with reference to the market build-up

argument. Market development has to start somewhere. It must obviously start with the

“richer consumers” (who are poor by industrialised world standards). The establishment of a

national infrastructure in the form of local manufacturing and region-wide maintenance

services leads to cost reductions. The poorer inhabitants benefit from this in the long run as it

enables them to get access to the PV-systems at a lower cost and to an established structure

for servicing and maintenance.

Both arguments have merits. But the equity argument is relatively weak:

• In grid based electrification, the poor get access immediately due to better affordability; in

villages, where PV-systems enter, they get a “pie in the sky”.

• Subsidies to rural electrification are not given only for social equity reasons, they also serve

the purpose of enabling the establishment of a basic infrastructure. Going from one village

electrification to the next through a gradual extension of the grid, enables the nation-wide

penetration of the grid to take place. The build up of a demand for electricity in an isolated

grid, generates in the long term sufficient demand to permit connection to the national grid.

PV-systems are individual consumer goods. The promotion of the systems does not provide

the country with a basic infrastructure apart from the service network.
15

• A 30% subsidy to a 35 W SHS costing NRS32,000 (US$450) reduces the annual amortisation

burden of a seven year ADB/N loan (deducting a NRS5000 down-payment) from NRS6700 to

NRS2700. In a grid based rural electrification scheme, a consumer with the same level of

demand pays NRS2500 for the connection fee and NRS720 per year for his baseline

consumption of 20 kWh/month. Assuming that the monthly bill covers roughly one third of

the true cost of production 10, the grid connected consumer receives an annual subsidy of

NRS1500 which is considerably less than the annual NRS4000 given to the beneficiary of a

PV-subsidy.

• Grid based electrification takes place based on the national least cost power expansion plan.

The reason why the target group of PV-consumers is not connected to a grid is that the cost of

connecting other consumers is cheaper. The non-availability of electricity, thus, is the result of

a rational allocation of scarce public financial resources. To jump-start the electrification

process by asking for subsidies to PV-consumers on grounds of social equity can lead to a

misallocation of scarce public finance.

The above did not lead Danida to a total rejection of subsidies to PV systems during a short predefined period. But it asked for caution with regard to the level of the subsidy and with regard to

fixing the length of the period during which the subsidy scheme remains. The objective is to

provide consumers with the opportunity to get access to well-serviced SHS made of good quality

components and benefiting from cost reductions due to economies of scale. Whether they make

use of the opportunity, or have other preferences is up to the consumer.

 

10 The cost of production of a small isolated grid supplied by a micro/mini plant is guess-estimated at

US$0.15/kWh = NRS8.2/kWh.
1

Distributed Resources and Village Power a Challenge to Utilities

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Carl J. Weinberg

We are coming to the end of a remarkable 100 years. A time span which saw major changes in the

philosophy of people, their relationship to each other and their relationship with nature. Major

changes in concepts of governance and major changes in technology that continues to push, pull

and shape our lives.

These changes are occurring with different speeds in different parts of the world. The Utility

Industry is also changing for it is not isolated, and the changes are embedded in the major global

changes taking place already this century and the major global changes that will continue to take

place in the next century. A recent insert in a Fortune cookie expressed this most succinctly “ The

philosophy of one century is the common sense of the next”.

This century was also a time span where we began to doubt that our job on this planet was to

conquer nature and began to evaluate our need to live in a symbiotic relationship with nature.

There were limitations on what we could do to this earth. The environment will become evermore

important as we move into this next century. Hopefully, we will slowly begin to move from

conquering nature to living in harmony with nature. We act when the problems are local, but

dealing with when they are global is more difficult. Rapid and coordinated action between

governments on Global Climate Change will be difficult

The Electrical Utility Industry will increasingly come under environmental scrutiny, as it is a major

contributor to atmospheric pollution and that concern will not go away. Nature has provided us

with a Faustian bargain; providing relatively cheap fossil fuels available in some form or

other for at least the next hundred years but asking us not use them since the atmosphere

cannot absorb the effluents.

The provision of electrical energy and energy services is also undergoing technological change.

These technology changes are calling into question the structure and with it the delivery systems

of the traditional utility. The technology is changing from the dominance of large central station

constructed energy to the more modular, flexible, manufactured energy. These new technologies

provides a means for electrical service to move toward the customer, in many cases to the

customer’s premise, and be tailored to the customer’s needs and ability to pay. The conceptual

model of a utility as large central station power plants connected to their customers by wires may

well not be the model for the future. This is particularly true for rural populations in developing

countries.

These then are the major forces;

Governance - Competition and the increased use of market based approaches.
2

Environment - Sustainability and increasing emphasis on 

environmental impacts both local and global.

Technology - shifting from large central station constructed energy to smaller more

modular, flexible, manufactured energy.

The development of modular flexible manufactured energy, distributed resources, introduces new

factors into the traditional analyses of costs and technology choices. Traditional cost of service is

a function of large central generation (+G), transmission (T), distribution (D), and, for some

utilities, large central storage (S), like pumped hydro. T and D are costs for getting the product to

market. The most variable factor is the cost of central generation. Utilities therefore focused on

minimizing busbar energy costs.

This cost of service equation looks like:

Cost ($) = f (+G, S, T, D)

Service can now be provided by minimizing the total cost of service, not just the busbar energy

costs. Many options are available to serve a customer. Providing either supply or efficiency close

to the customer is, in many cases, the least cost of service solution. These are new factors in the

cost of service equation, the distributed systems.

Cost ($) = f (±G, S, T, D, ±g, s)

+G - Central station power generation

-G - General decrease in energy intensity

 S - Central station storage

 T - Transmission

 D - Distribution

+g - Small dispersed or distributed

generation (often renewables)

-g - Targeted energy efficiency

 s - Small-scale storage

 The least cost of service for each customer provides a means for a broader evaluation of options

including those technologies the customer chooses to include in the equation. Cost or price will

not be the only values that a customer may consider.

There are three generalized situations for consideration of distributed systems, DR(±gs);

1. $G+$T+$D <<< $DR(±gs) Centralized operation based on central generation (large

load centers). Cost of central generation plus the cost of T&D is much less than

the cost of distributed resources (including renewables).
3

2. $G+$T+$D >>> $DR(±gs) Distributed operation (islands/villages) based on distributed

resources . Cost of distributed resources is less than the cost of generation,

transmission, and distribution.

3. $G+$T+$D ~~~ $DR(±gs) A mix of resources depending on localized costs,

conditions and choices ( market niches).Cost of distributed resources is 

approximately equal to the cost of generation, transmission, and

distribution.

The wholesale or commodity market is characterized by situation 1.

$G+$T+$D <<< $DR (±gs)

This market is the traditional utility market. It revolves around the development of central station

generation and its associated grid. Emerging for this market is a regulated or nationally operated

powerpool and open access transmission grid with private companies building the generation

systems.

Situation 2 where,

$G+$T+$D >>> $DR (±gs)

Describes the situation where there usually is no utility structure and the central station concept

does not fit. It represents 2 billion people without electricity, the off-grid market, limited grid

market, or the Village Power market. In this case there is a relatively unknown demand and an

indeterminate ability to pay. Attempt to fit this situation into the classical utility model have not

been successful, and the standard project financing models are not appropriate. Attempts to

“parachute” in technologies using a standard utility approach have also not been successful.

There is also a subtle difference in approach between these two situations. In Situation 1, the

centralized approach, the question is “at a given level of service what is the least cost at which

services can be provided using traditional technologies”. In Situation 2, the decentralized

approach, the design question is “given a cost (or ability to pay) what are the levels of service that

can be provided and then expanded. The starting point of the analysis is quite different. This

subtle shift in analysis starting point is difficult for traditional utilities to accept. It appears to be a

radical notion. Utilities have no special expertise in this situation.

The most successful development of this market has been by Non-Governmental Organizations

(NGO’s), religious and philanthropic organizations. One of the interesting developments is the

private sector companies who are beginning to successfully provide energy services in this market.

Private companies are beginning to provide energy services, that the rural population can afford to

buy, using renewables at the point of use or at the village level.

The development of this market, as an example Village Power, is closer to business development

than power project development. There is a need, therefore, that government policies to foster

rural electric services deal with business development not project development.

The central focus should be to provide electrical services commensurate with the ability to pay

and the capability of being expanded as need and ability to pay increase. This also suggests that

the appropriate business model may be a "for profit" Franchise business model. This allows for

centralized training, financing and technical backup, but localized ownership and focused
4

products. It is a model that has more in common with McDonalds, Burger King and Kentucky

Fried Chicken than large utilities, and requires different financing mechanisms than power project

financing. In each of the successes it is private industry tailoring its product to the situation

(market) with a profit in mind, and providing a degree of flexibility that national, regulated, or

traditional utilities seldom exhibit.

Situation 3,

($G+$T+$D ~~~ $DR (±gs)

May best describe the evolving company of the future. It combines central station generation with

a mixture of small storage and generation and energy efficiency programs located at specific

distribution or dispersed sites. All of these situations imply a dynamic process that will be in a

continual change.

Technology choices therefore feed into distinct markets. The grid connected wholesale market,

where slight changes in the present utility model and project financing will continue to exist. The

grid and non-grid connected markets where the present utility model and project financing are not

appropriate and where the business model and associated financial instruments need to be brought

into sharper focus and do not follow the traditional utility operational or decision models.

As distributed resources are challenging the traditional utility model so will the environment.

Energy is a major aspect of the quality of life and has a major impact on the environment. It is

becoming increasingly evident that renewables coupled with energy efficiency are important

components of a sustainable energy future.

For a sustainable energy future there are really only three approaches;

1. High efficiency conversion of clean (low carbon) fuels,

2. Renewables and

3. Efficient use.

There are varying opinions on the ratios of the three and the emphasis. But that is all there is.

There is no silver bullet only silver buckshot.

Sustainable energy requires the increased use of the short-term flux of the sun or the heat of the

earth, rather than the stored flux of eons represented by fossil fuel. The shorter the flux of the sun

the more the electricity generation is dispatched by nature and not by man. The more dispatched

by nature the more radical,or disruptive, from a central station electrical utility viewpoint, is the

technology. The central station system with its associated grid requires an exquisite degree of

control. Even the thought of relinquishing that control is radical to utilities

Distributed Technologies, in general, require cleaner fuel or utilize the short-term flux of the sun.

Energy efficiency technologies are all self dispatched. Distributed resources are best selfdispatched or under some local control. The more dispatched by nature, self or locally dispatched,

the more the technology is radical or disruptive.

Distributed technologies in general, are smaller and more modular. They work as well or better

distributed rather then centralized. The more modular and the more distributed, the more radical
5

is the technology. The more a grid is not required the more radical or disruptive the technology

becomes. Photovoltaics, as an example, is immediately dispatched by nature, does not require a

grid, and is the most modular of the renewable technologies and therefore easily qualifies as a

radical innovation.

Numerous studies of technical innovation have shown that radical or disruptive innovation has

never been introduced by market leaders. (Users of traditional technologies).1 Radical or

disruptive technologies are those that result in worse performance in the short term, but offer

other features which a few fringe (and generally new) customers value. Radical or disruptive

technologies don’t seem to make sense because they are usually cheaper, promise lower profits,

and they target insignificant markets, and large existing customers don’t want them. Sustaining or

evolutionary technologies improve product performance along the dimensions of performance that

mainstream customers in major markets have historically valued. ( Example; Combined cycle gas

turbines)

One way to characterize these differences is that sustaining or evolutionary technologies are

"better, cheaper, faster" and radical or disruptive technologies are " a brave new world" with

different characteristics and values. The real question is why did companies fail to move to " a

brave new world ". In study after study, good management was the most powerful reason they

failed to change. Precisely because these firms listened to their customers, invested aggressively in

new technologies that would provide their customers more and better products of the sort they

thought they wanted, and because they carefully studies market trends and systematically

allocated investment capital to innovations that promised the best returns, they lost their positions

of leadership. It was impossible for these well managed firms to allocate resources for

technologies that their traditional customers did not want and using technologies that did not

provide as good a profit stream, had characteristics that they where not familiar with, and they

could not centrally control. 2

What did the companies have in common? One, the decisions that led to failure were made when

the leaders in question were widely regarded as among the best companies in the world. Two,

they were good, well-managed firms that “ ignored the significance of a new technology. The

radical or disruptive technologies began as apparently inferior products and then grew to

overtake the traditional technologies and brought with them a new set of customers and values.

Large traditional companies don't like radical or disruptive technologies as they typically supply

small markets, which are not enough to satisfy the revenue needs of a large firm. In addition these

markets are hard to estimate, so companies who require firm quantitative data, the hallmark of

utilities, before making a decision will miss out. It just does not make sense for them to invest.

The have developed a "value system" that progresses from the bottom to the top of the

organization. This system is geared to the technologies that have made the company a leader. A

disruptive or radical technology can never make it through such a system. Utilities represent such

traditional companies. Distributed, renewable, and energy efficiency technologies represent radical

and disruptive technologies. Utilities will not be able to make the transition to the kind of business

structure and value system required to make these radical technologies a success.

 

1 Mastering the Dynamics of Innovation, James M. Utterback, HBS Press 1994

2 Liberally adapted from " The Innovators Dilemma, When New technologies Cause Great Firms to Fail"

 Clayton M. Christensen, HBS Press 1997
6

The provision of energy services to the rural populations of the world, in a sustainable

manner, will depend as much on innovation in organizational structures as it does on the

innovation in technologies. So the challenge to utilities is that the delivery mechanism for

energy services using renewables and distributed, new, radical technologies requires them

to abandon the culture and the structure of control that made them a success. A

metamorphosis that history tells us few, if any, companies have accomplished. And if there

are any companies that seem incapable of doing so, it is utilities. ⊗

 

⊗ Carl J. Weinberg, Weinberg Associates, 42 Green Oaks Ct., Walnut Creek CA 94596

 925.933.9394/925.932.2275 fax, Poppacarl@aol.com
1

SUSTAINABLE ENERGY

Must Move Closer to the Near Term Flux of the Sun

• ONLY THREE WAYS TO GO

High Efficiency Conversion of “clean” fuels

Renewables

Energy Efficiency

• No Silver Bullet only Silver Buckshot
2

WEINBERG ASSOCIATES

Situations for Consideration of 

Distributed Systems

$G+$T+$D << $DU Centralized planning based on central 

 generation (large load centers). Cost of central 

 generation plus the cost of T&D is much less 

 than the cost of distributed resources. 

$G+$T+$D > > $DU Distributed planning based on 

 distributed resources (islands/villages). Cost 

 of distributed resources is less than the cost of 

 generation, transmission, and distribution. 

$G+$T+$D - $DU A mix of resources depending on 

 localized costs and conditions (niches). Cost 

 of distributed resources is approximately equal 

 to the cost of generation, transmission, and 

 distribution.

Distributed Systems

Radical or Disruptive

Technologies

• Small, Modular

• Work as well distributed

• Self, locally or naturally dispatched

• Not on the grid

Weinberg Associates
3

Technologies

 Radical or Disruptive - “Brave New World”

 New Customers / New Values

 Evolutionary - Better ,Cheaper, faster

 Traditional Customers/Traditional values

“Radical or Disruptive Technologies never

introduced by Market Leader”

Weinberg Associates

Radical or Disruptive

Technologies

• Don’t satisfy revenue needs of large firms

• Markets hard to estimate

• Lack of quantitative data

• Cannot pass through established decision gates

• Require new organizational structure and 

culture

Weinberg Associates
4

The Challenge

• Village Power requires

– the use of radical technologies

– business not project financing

– innovation in organization not just technology

• Utilities cannot change nor deliver 

systems economically

Weinberg Associates

RADICAL or DISRUPTIVE

TECHNOLOGIES

• DISPATCHED BY NATURE, SELF,

OR LOCALLY

• MODULAR, GEOGRAPHICALLY

DISTRIBUTED

 Require New Organizational

Structures
Page 1

Distributed Generation

in the New Millennium

James Reilly,Vice President

Edison Technology Solutions

www.edisontec.com

October 7, 1998
Page 2

Distributed Generation

Solar-PV

Wind

Fuel Cells

Micr
Page 3

Distributed Generation is a Disruptive Techn(Bower & Christensen, HBR, Jan 1995)

• One of the most consistent patterns in business is the fail

leading companies to stay at the top of their industries whtechnologies or markets change

• Most well managed, established companies are consisten

ahead of their industries in developing and commercializinnext generation technologies
Page 4

Edison Technology Solutions Intendsto Lead Our Industry in Distributed Generatio

• Edison International (EIX), is the parent company

– 1997 Revenues: $9.2 Billion– Net Profit: $0.7 Billion

– Assets: $25.1 Billion

• Other affiliate companies include:

– Edison Mission Energy– Edison Capital– Edison Enterprises– Southern California Edison

Edison Technology Solutions (ETS) is the remaining core of SoCalifornia Edison Company’s R&D Organization. Over the last dETS employee’s have been the drive in implementing the worldsdiverse utility generation portfolio on behalf of the utility.
Page 5

Edison Technology Solutions• Vision

“Develop and commercialize technologies, products an

services to meet the needs of emerging competitive en

and electricity markets”

– Developing distributed resources for enhancing rel

of the grid and creating the “grid of the future”

– Deploying renewable distributed applications– Developing technologies to increase power quality– Developing and demonstrating “hybrid” technologie

high efficiencies and low emissions
Page 6

Why Distributed Generation?

• The evolution of Fuel Cells for stationary power applic

micro-turbines, PV and wind all figure prominently in themergence of “disruptive technologies”

• The US market is moving towards distributed generati

based on emerging technology, time of day pricing anrestructuring incentives

• International market is based on high demand and

liberalization of the energy markets
Page 7

Movement to Distributed Generation

• In the developing country markets, Distributed Gene

is to the energy sector what the cell phone has been telecommunication’s sector

• Regulatory reform and technology has made the en

commodity more accessible and less expensive to a market segment that has previously been poorly ser
Page 8

World Energy Council

• The World Energy Council, on behalf of thirty-five energ

ministers and five thousand energy executives from necountries, issued on September 18, 1998 their conclusrecommendations from on the world's energy sources sbe used

– “The accelerated development and use of renewable ene

resources must be given high priority as a means of sup

commercial energy services to people without previous a

energy sources”
Page 9

World Energy Council

“Both traditional and new renewable energy sources hav

important place in future energy supply. While fuel, woo

coal will remain the principal energy supply resources fo

developing countries, distributed generators -- micro-turb

diesels, and fuel cells -- and renewable technologies, sp

wind, biomass and solar, may provide a viable option for 

operating independent of power grid and fuel pipeline sy
Page 10

Edison Technology Solutionsand Solar Photovoltaics (PV’s)

ETS staff managed this PV installation off the CaSanta Cruz Island. This 130 kW site validates the renewable technologies in isolated, remote applic

• With over twenty years’ of

experience in the development,demonstration, and implementationof renewable technologies, ETSstaff has managed solar-PVinstallations from 1.5 kW to over100 kW, at over a dozen sitesthroughout Southern California.

• ETS has developed a three-tiered

approach to help utilities,international organizations, andcommercial customers integrate acomprehensive solar program

– This experience and knowledge

will be highly applicable todesigning and commercializingsolar- PV technology for VillagePower
Page 11

Movement to Renewable/Fossil Hybridization

• Hybridization is essential to

renewable energy technologies −lowering their levelized energycosts and increasing systemreliability and capacity factor

• Many renewable energy

technologies have distributedgeneration implications/similarities
Page 12

Edison Technology Solutionsand Micro-Turbine Generators (MTG’s)

• ETS is managing a $2 million

utility/industry/government effort to test,prove, and enhance micro-turbinegenerators.

• This effort grew out of ETS’ early

recognition, that a fundamental change inpower generation was occurring - thereplacement of economies of scale witheconomies of manufacturing. This insightallowed ETS to take a national leadershiprole in testing and improving this emergingtechnology.

• ETS’ focus is on increasing efficiency,

lower emission levels, and improvingmachine reliability.

Two micro-turbines under endurance tes
Page 13

Edison Technology Solutionsand Fuel Cells

• With over twenty years’ experience

in the evaluation, development, anddemonstration of distributedgeneration technologies, ETS hasextensive experience with twoprevious Siemens-Westinghouse 20kW atmospheric SOFC designs.

• ETS’ focus is to pursue initiative

enabling technologies that will helpfoster rapid commercialization andsignificant deployment of fuel cells

– Fuel reformation– Balance-of-plant (inverters)

Prototype 25 kW SOFC in operation aFuel Cell Research Center at Irvine, CETS is a founding member.
Page 14

Trans

On-S

Powe

Distr

Powe

Milita

Powe

Source: AD Little

Fuel Cells Can Provide a Common TechnoloPlatform for Many Market Sector Application
Page 15

Next Wave of Technology Integration

• According to Power Engineering

“The rapid evolution of gas turbines technology in recent yea

achieving higher and higher efficiencies - leads one to wonde

the thermodynamic ceiling is. The next barrier - 70% - is get

tight. To achieve that level, novel cycle designs will be neces

• ETS’ Fuel Cell / MTG Hybrid Power Plant has an exce

chance of achieving 60% efficiency and beyond

– “Combined cycle” integrating a fuel cell with a MTG

– Chemical process - similar to a battery– Lower capital cost ($/kW) than a standalone fuel cell– Higher efficiency than either a standalone fuel cell or MTG– No detectable NOx emissions

– Modularity, sized for the less than 1.0 MW market segment
Page 16

Edison Technology Solutionsand “Grid-of-the-Future”

• With over twenty years’ of utility policy making,

operating, planning and real time control experience,ETS has and is playing a leadership role in the electricindustry restructuring, both on a national and regionalbasis from policy, operational and real-time controlperspectives

• The vision of the “Grid-of-the-Future” program is to

facilitate creation of new grid infrastructures that willintegrate new technologies and tools to maintain andimprove reliability and efficiency

• Integration of distributed generation, storage, and

power electronics technologies at the transmission,distribution and consumer levels, in addition todevelopment of smart integrated grid managementtools make the ETS portfolio to improve grid reliability

SMART POWER GRID RELIABILITY 

 Integrated Core, Information Model and Applica











        



 

  



    



 







 



 

 



 

 







 









 

 

 



 

  





 



 

   





  



 



 

 





 



 





 





 





 







 



 

 







 



 





 



 





 





 



 







 



  



  



      



    

        



   







 











 









 

 





 







  





 



 







 

 



 



 



  



 





 



 





 

    

 

    



  

 

 

 







        



   





 



  



     











  





           6

)25(&$

9,

3$ 77(5 1

5( &2 *1,71

$57,) ,& ,$/

,17 (//,* (1

1

'$ 7$%$ 6(6 #)

&2 0081,& $ 7,216

60 $57

6,0 8/ $ 725 6

60 $57 *5,'

'$7$ & (175 ,&

'$ 7$%$ 6(6

(;3(57

6< 67(0 6

PHASE III

PHASE VI

60 $57 9$5

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Page 17

In Summary• Entrepreneurial subsidiaries within a large, multi-nation

energy company do possess the synergistic character

– Providing the technology push for appropriate tech

in the global marketplace

– Having the market presence and financial strength 

collaborate with multi- and bi-lateral organizations

– Perceiving the de-centralization of energy supply a

electrification of the “unplugged”
APS/CFE RENEWABLE

ENERGY PROJECT

Peter Johnston
APS/CFE

RENEWABLE ENERGY PROJEC

• Team with CFE to provide a commun

energy service using renewable energytechnologies

• Manage the institutional issues to mak

sustainable business model
SITE SELECTION CRITER

• Potential for good solar and/or wind

resources

• Existing infrastructure and economic

activity

• Potential for economic growth• Low probability of connection to the e

grid in the near future
SAN JUANICO

• Coastal fishing village of ~ 400 peopl• World-class surfing, small resort, airs• Diesel power 4 hours/day, existing mi• Peak load of ~ 50 kW• Unused fish processing/cold storage f
PROJECT STATUS

• All major equipment items delivered 

Yucca power plant in Yuma

• Delivery to San Juanico awaiting IVA 

issue resolution

• PCU in Phoenix for initial acceptance

testing
PROJECT STATUS

• Electric Patronato has been formed• Tariff structure has been developed - 

approved by village

• Connection fee being collected• Civil work has been completed• Plant in operation by March 31st 1999
SYSTEM CONFIGURATI

• Ten 10 kW wind turbines• 17 kW photovoltaic modules• 420 kWh battery storage• 80 kW backup diesel generator• 72 kW dc/ac inverter
Village Power ’98

14:00-16:00 Power Supply Options for Decentralized Rural

Electrification - Chair, Judy Siegel,World Bank

•PV Applications for Sustainable Rural Development - Peter

McKenzie

•Decentralized Rural Electrification in Zimbabwe - Alex

Makomva, ZESA

•Lessons Learned in Battery Charging Stations - Stephen

Graham, Consultant

•Small Wind for Village Power - Michael Bergey, Bergey

Windpower

•Biomass Gasification for Village Power - Ralph Overend, NREL

•Hybrid Power Systems in the Australian Outback - Stephen

Phillips, AES Australia

•Diesel Retrofits: The Alaskan Experience - Richard Emerman,

Alaskan State Energy Office

•Micro-hydro Mini-Grids - Andrew Barnett, Intermediate

Technology Development Group













Lessons Learned at Solar Ba

Charging Stations

A Presentation to Village Power ‘9

Stephen Graham

SGA Consulting, Ottawa, Canada
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

The StudyQ World Bank Sponsored to answer:

1. Do SBCS make sense?2. If so what are best practices?

Q A four country field survey of SBCS progr

– Brazil - 40 Stns, since 1996– Morocco - 30 Stns, since 1994– Thailand - 1350 Stns, since 1988– The Philippines - 225 Stns, since 1990

Q Findings preliminary
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Conclusion: When do SBCSmake sense?1. For small residential

demand.

2. Remote from the grid.3. Where diesel costs are

high.

4. As a complement to

SHS markets.

Q Fluorescent light

radio, B&W TV

Q Grid BCS unless 

battery transport 

Q Diesel BCS unle

fuel costs high

Q SHS markets ser

demand and abil(ATP) - SBCS buconfidence & malower cost, local node
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

An Economic AnalysisQ Four Options: Solar

Station (SBCS), DieselStation (DBCS), SolarHome (SHS), Grid Station(GBCS)

Q Base Case -> Sensitivity

Analysis for Access &Demand

– Fuel price; Diesel BCS– Battery transport cost;

Grid BCS

– Demand; Diesel BCS

& SHS

Assumptions:DR = 12%, 15 yr projecBattery - SLI, 12V, 85 A

life 100, DOD 80%, owned

Insolation - Design 4.2 

(Ave 5.0 kWh/m

2-d)

Economic diesel cost $Grid LRMC $0.05 / kWHousehold demand 100 

lts, 3 hrs; 0.3 TV 1.5 radio, 3 hrs)

No environmental bene
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

More Economic AssumptionInputsQ SBCS

– Capacity per outlet based on

full charge to battery onmonthly min. solar day

– number of outlets based on

battery capacity, HH demand& assumed market size

– battery life based on cycle life– Incremental Management Cost

(IMC)

Q Grid BCS

– Charger capacity 60V, 20A– Serves broad community to

always operate at capacity

– No IMC

Q SHS

– Module capacity b

daily demand and min. insolation

– battery life assum– IMC

Q Diesel BCS

– 3 kW capacity, e=– Charger capacity – local diesel cost a– serves identical co

SBCS

– No IMC
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Findings of Base-Case Analy

Option NPV

($/HH-mo.)

B/

SBCS 7.44Diesel BCS 6.81 SHS 10.01 Grid BCS 5.45 
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Sensitivity to Access: On-SiFuel Cost1/ National Economic diesel price

assumed $0.18/ litre

SBCS is not Diesel BCS

competitive until localfuel price cost is atleast 100% ofeconomic price

Figure 2.3: SBCS: Sensitiv

Fuel Price

0.80.9

1

1.11.21.31.4

0 0.05 0.1 0.15 0.2 0.2

Fuel Transport Margin Over 

Economic Price ($) 1/

B / C
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Sensitivity to Access: BatterTransport CostQ SBCS becomes Grid

BCS-competitivewhen economictransport costs aremore than $0.75 / trip

Figure : S BCS: Sensitiv i

Battery T ransport 

0.8

1

1.21.41.61.8

2

0 0.25 0.5 0.75 1

R o un d Trip C o st / B attery 

($)

B / C
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Sensitivity to Demand: A Rofor SBCS at low demandsQ Low demand = lower

Diesel capacityutilization

Q as demand increases

SHS becomescompetitive - costeffective use ofbatteries

B / C of Options to SB

Varying Deman

0.5

1

1.5

2

60 100 140 180 220 260

W h / Household - day

B / C
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

The Synergy of SBCS and SQ Same service, potential complementa

markets,

Q SBCS benefits over SHS markets

– lower economic costs for low demands 

lower ATP

– proof of concept– community presence for marketing, fina

servicing SHS

– modular for conversion to SHS

Q SHS benefits over SBCS

– convenience
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Conclusion: What are bestpractices?Q Keep design simple and low-cost,Q serve basic market demand; allow SH

serve higher end

Q Emphasize operator skills and comm

participation

Q Keep utilization highQ Subsidy may be necessary in remote 

and to pilot/demonstrate technology
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Technical Design Features

– Minimize costs– assume a low load demand- SHS serves – no bus; dedicate panels to each charge o– eliminate HVD; self-regulating system– meters for charge status of batteries and

operator control

– user owns and controls discharge of bat
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Organization & Operation DFeatures

Isolated areas with low

Ability To Pay (ATP)

Q Often community-controlQ Battery SOC rarely

monitored

Q users scheduled charge

time; limit at Stn. (1 day)

Q restricted closed market -

community sets fees

Q few operator incentives

Areas with hig

Q Owner-operator Q Battery SOC mo

before & after ch

Q SOC determines 

residence time

Q open market - co

sets fees

Q operator incentiv
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Subsidy May be Necessary

The Effect of ATP on Subsidy Levels

0 %

20%40%60%80%

100%

$- $0.20 $0.40 $0.60 $0.80 $1.00

Fee/Charge

Level of Capital 

& Operation 

Subsidy
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Field Experience: Design

Design Considerations for SBCS

0

20406080

100120140160180

0.0 5.0 10.0 15.0 20.0

HH / Outlet

Wp / Outlet

Brazil - batteries on charger 2 days ave.

SBCS charge batteries in one day and serve demand 

for lighting and entertainment in homes - HH charges about 4 times 

Morocco - serving demand for TV only

Philippines - design for only 1 charge 

/month
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Field Experience: Costs

SBCS Capital Cost $/Wp

$0.00$2.00$4.00$6.00$8.00

$10.00$12.00$14.00

100 120 140 160 180 200 220 24

Wp/ Outlet

$ / Wp

Public sector, Local labour, low cost shelter, mature program

Private sector, high cost of development

Private sector, high cost of development

Thailand - effects of devaluation,
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Field Experience:Implementation and Operatio

Country Implement

Institutions

Demo.CostsBorne by:

Implementation St

Brazil National NGO US equip

supplier &Govt.

NGO mobilizes locaEquip supplier & Definance operator

Maroc Private firm

with franchises

PrivateGovt /donor aid

Franchise purchaseset up to market rurequip – SBCS “lost 

Thailand Govt.

Agencies (2)

Govt Disadvantaged com

strong input – capita

Philippine Utilities- REC

LGUGovt AgnciesNGO’sUniversities

Donor Aid Disadvantaged com

capital subsidized
SGA Consulting, Ottawa

Village Power ‘98, Oct. 6-8

Field Experience: FinancialConsiderations















 

























$0.00$2.00$4.00$6.00$8.00

$10.00$12.00

M onthly 

Expenditures 

($US)

Brazil

Morocco

Thailand

Philippines

ATP for HH Electricity

 Grid Batte

Charging 

 Light and 

before SBSBCS Cha
Small Wind Systems fo

Small Wind Systems fo

Village Power: An Upda

Village Power: An Upda

Village Power ‘98

Washington, DC Oct. 6-8, 1998

Michael Bergey

Bergey Windpower Co.

< mbergey@bergey.com >
Modern Small Wind Turbines

Modern Small Wind Turbines

High Tech, High Reliability, Low Mainten

X 50 W - 50 kW CapacityX Aerospace TechnologyX Mechanically Simple: 3

Moving Parts

X No Regular Maintenance

Required

X Low Costs: $ 1 - 3 / WattX Proven: ~200,000

Installed, Over a BillionOperational Hours

10 kW Uni
Modern Small Wind Turbine

Modern Small Wind Turbine

A Least-Cost Option for Small Power

" With reasonable assumptions concerning discount rates,

capacity factors, and fuel costs, micro-hydro and wind

turbines can have the lowest life cycle costs in locations

where the resource is sufficient." Fueling Development: Energy Tec

Developing Countrie

U.S. Office of Technology 



Cost of Energy, $/kWh

$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40

MicroHydro Wind Diesel Grid Extention PV

Typical Costs of Energy at 10 kW Capacity
Existing Wind Maps Existing Wind Maps

The Curse of Meteorological Data

X Sheltered Wind Sensors

• Below Trees, Buildings, Etc.

 • Roof Mounted

X Worn Bearings, No

Calibrations, Etc.

X “Disappearing Wind”X Power ~ (Velocity)

3 ; So 20%

Error in Wind Speeds Means~50% Error in AvailableEnergy

Most National Wind Maps Radically Under-Es

Available Wind Energy Resources !

Case of “Disappea

Kupang, Indo
Finding the True Wind Reso

Finding the True Wind Reso

X NREL Wind Mapping with

Additional Data Sources:Satellite, Ex-Military Data,Etc.

X Low Cost Wind Loggers

Specifically Designed forSmall Wind Applications
Small Wind Applications Small Wind Applications

Wind Home Systems









Controller



Battery Bank



120/240 VAC 

Loads

24 VDC 

Loads

DC Source Center Static Inverter

600 W Wind Turbine    













Wind Turbine

Tower





Wind 

Charge 

Controller

Battery Bank

120/240 VAC 

Loads

DC 

Loads

DC 

Source 

Center





PV Charge Controller

 PV Array (Optional)

 

DC - AC Inverter

System Controls 

Not Shown

Engine 

Generator (Optional)  

Hybrid Power Systems

 Wind-Ele

    



Wind Turb

Tower

Pu

Sy

Cont


Industry Trends Industry Trends

X Remote Power Markets are

Expanding, Companies areGrowing Nicely

X Small Wind/PV Hybrids &

Wind Home SystemsEntering Mainstream ofRural Electrification

X Package Standardization:

Lower Costs & EasierOperational Support

X Growing Evidence of

Significant Battery LifeExtension Due to Chargingfrom Wind
China Rural Electrification China Rural Electrification

World’s Largest Market for Small Wind

X 140,000 Existing SystemsX Wind/PV Hybrid Home Systems

... SETC / World Bank Project:30,000 New Hybrid Systems

X SDPC “Brightness Engineering”

Village Power Program ... ~35,000 5-10 kW Wind/DieselSystems

X Foreign Cooperation to Improve

Technology ... Hua De (donoraid) & Xiangtan BergeyWindpower Ltd (private sectorJV)
Chile Region X Electrificatio

Chile Region X Electrificatio

Wind/Diesel Favored Over Diesel-Only

X Collaboration Between CNE,

Regional Governments,NREL, and NRECA

X 1997: Region IX Pilot

Projects

X 1998: Region X Pilot

Projects

X 1999: Regional Implementation: Isla de Chiloe

~ Thirty 3-40 kW Wind/ 

Diesel Systems Villa Las Araucaria
Advanced Small Wind Turbi

Advanced Small Wind Turbi

Technology on the Move

X US-DOE Advanced Small

Wind Turbine Program ... 8,16, & 40 kW

X Injection-Molded &

Pultruded Blades

X Special Low Wind RotorsX 10 Year Preventive

Maintenance Interval; 50Year Operating Life

X Very Tall Towers, up to 82

meters (270 ft)

X Many Other Private Sector

R&D Programs
Request: Let the Markets W

Request: Let the Markets W

X PV / SHS is Not a Silver Bullet for Rural

Electrification ... Consumers Often Want Than ~ 200 Wh/Day, Direct Current

X Consumers are Technology NeutralX Small Wind Turbines have Attractive Cos

Reduction and Technology Transfer Pote

X Goal of Bilateral and Multilateral Finance 

Market Stimulation Programs Should be BService at Least Cost

X Industry Seeks New Public-Private Partne

to Provide Market Transformation Opportin Village Power
Status of Biomass Gasifier

Village Systems

Ralph P. Overend

National Renewable Energy Laboratory

For: Village Power ‘98

World Bank Headquarters

Washington, DC. October 6 - 8, 1998
Biomass and Village Energy

Biomass is the World’s 4th Energy Source

Usage of Biomass is widespread in both

Industrial and Developing Countries

The majority is used to provide heat 

Worldwide 15 PWh thermal and about 150 TWh

electricity (15% and 1% of world totals)

Is renewable if the resource base is

managed sustainably

Advantage in being despatchable
Biomass Utilization

Pervasive in Rural, Urban and Industrial Settings

Daily living

– Cookstoves

– Space heating

Community Applications

– District Heating, Institutions (Hospitals, Administrative

Centres)

– Village Industries

– Drying Kilns, Ovens, Lime Kilns

Industries

– Wood Processing

– Sugar Mills

– Palm Oil 
Power and Electricity from

Biomass

Mainly in Industry Today - Using “captive” Residues

Commercially Available

– Large Scale > 1 MWE output

– Steam Boiler and Turbines

– Small Scale < 1 MWE output

– Steam Boiler and Turbines

– Gasifiers and Internal Combustion Engines

Emerging Technologies

– Gasifier/Combustor - Stirling Cycle

– Gasifier/Combustor - Gas Turbine (Brayton Cycle)

– Direct-fired

– Indirect 

– Gasifier - Fuel Cell
Biomass to Power Systems

Sustainable Resources and Efficient Technologies are

Needed

The essentials of a bioenergy system are:

Sustainable Resource Base

Reliable Technology

Environmental Quality

Revenue Generation to ensure Sustainability
Biomass and Bioenergy

Criteria for Success
Resource Base Considerations

Available Biomass Criteria

Available Land

Crop Production Patterns

Competing Uses for the Resource

Logistics of gathering and storing prior to use
AgroIndustries

Energy Plantation

Arable and Pasture Land

Grid Connect?

OR

Stand-alone?

Village Power from Biomass

Potential Resources
Conversion Efficiency and Land

Productivity

Land Limited to Village Area

250 Households

4.8 kWh/day supply 

(125 kW peak)

Land Available

500 ha Arable Land (India)

70 ha of Arable land (China)

NO OTHER BIOMASS

RESIDUE UTILIZATION

Daily Living

Animal Fodder

Animal Bedding

Fuel for Village Industry

Other products - paper
Technology Makes for Better

Service

100 households 20 hA arable land - double cropped
172 MJ

Wasted Heat

153 MJ

Delivered

Cooking Energy

19 MJ

Gasifier Losses

26.7

Cooking Losses

10.2

76.7 MJ

Straw Available

Lighting Energy

16.8

Cooking Energy

19.0

Village Energy systems

Moving from 1960-2000
Technology Options

Biomass Pretreatment and Post Conversion

Physical (Size reduction, slurrying, drying)

Combustion and Steam Generation

Gasification - Biological or Thermal

Conversion
Conversion Technologies for

Biomass

Efficiency and Scale Map
Diesel

Diesel

29 TJ

3.76 TJ

127 TJ

191 TJ Wood Residues

Wood Residues

Russian Northwest Territories

Heat and Power from Sawmill Residues

Verkhni Ozerski - Today

215 Households, 640 Population

Current District Heating System and

Diesel Electric

Diesel fuel cost = 15 - 20 ¢/kWh

Ratio of heat to electricity demand 4.5

Proposed system

Efficient boiler to replace existing

Steam turbine to offset 87.5% of

diesel 

Cost effective on residues

Source NREL /SR-210-204040

Prepared by Ecotrade 2/98
Power Generation

 Direct Fired

Steam Turbines and CHP Applications

Direct biomass combustion

Gasification close coupled to boiler or HRSG

Steam turbine

Internal Combustion - AD gas, Low and Medium

CV gas, Liquid Fuels 

Gas Engines with spark ignition 

Dual Fuel (with Diesel or Kerosene) 

Gas Turbines 

Fuel Cells 
Power Generation

 Indirect or External Coupling

Indirect cycle gas turbine

Stirling engines

Direct fired with solid fuel

Gas fired with AD gas, Low and Medium CV gas,

Liquid Fuels

Thermionic generators

Thermovoltaics
Gasification - Biological a.k.a.

Anaerobic Digestion (AD)

Handles wet easily hydrolyzed biomaterials

Animal residues in slurry reactors

– Chinese individual household systems

– Intensive animal husbandry - swine, chickens, dairy cows, beef

feedlots

Industrial process residues

– Sugar mill effluent, breweries, distillation plants, pharmaceuticals

Municipal solid waste in landfills

Process

Slurry based

High and low rate systems

Efficiency depends on the Resource, and Temperature

Recycles nutrients to the land

Costs are high if not justified for environmental reasons
Biogas Product

Anaerobic Digestion/Landfill Gas

Composition

– Methane 55-70%

– Carbon Dioxide 30-45%

– H2S 200-4000ppm

Heating Value

– 20 - 25 MJ/Nm3

Utilization

– Electricity via GT, Gas Engine

– Heat for Boilers
Thermal Gasification

Scale limits choices

Simple Process Concept - Difficult to

Engineer

Heat + Biomass = gas + pyrolysis oils + char + 

 ash + steam

– Internal or External Heating

– Internal - heat transfer and mixing

– Counter current gasifiers (Updraft)

– Co-current gasifiers (Down and cross draft)

– Fluidized beds - Bubbling or Circulating

– External Heating

– By-product gases from charcoal kilns

– Indirect gasifiers

– Battelle etc
Biogas Product

Never Clean!

Composition (see Table)

Contains water, tars and dust 

Heating Value

15% of natural gas

Safety

Carbon Monoxide is a toxic gas

Excess water produced - tar

contaminated

Tars contain carcinogenic PAHs

Utilization

Close Coupled - >85% efficiency 

Cold-clean gas 60 - 70% efficient

Gas Heating Value Percentage Contribution

Carbon Monoxid 12.6 20.5 2.58

Hydrogen 12.8 17 2.18

Methane 39.8 2 0.79

Ethane 70.4 0.1 0.07

Ethylene 64 0.1 0.06

Nitrogen 0 49.2 0

Carbon Dioxide 0 11.2 0

Heating Value 5.68
Commercial Gasifier Technologies

India and China Lead in Units in Service

India

MNES sponsored subsidy program

Leading manufacturer ANKUR has installed > 500 systems

– Moral hazard of subsidy for diesel/gas dual fuel systems

– 10% of units continue on biomass, the rest mainly on

diesel

Several manufacturers and developers

– Agroindustry acceptance good

– Skilled personnel

– High capacity factors

– Available low cost residues

Typical Efficiency 18 - 20% 

Costs (in country) 900 $/kW (3.5 kW) to 400 $/kW (100 kW)
China

Rice Hull Gasifiers 

Rice Hull Gasifiers

Designed for use in central rice processing

facilities

120 - 150 units of about 160 kW in operation

Hongyan Motor Works 88.3 Litre gas engine (SI)

– Compression ration 8.5

– 600 rpm

Efficiency 11 - 16%

Cost (in country) 265 $/kW (1995)
China

Village Gas - Distribution

Shandong Energy Research Institute

100 and 200 Household modules

Uses agricultural residues

– Wheat straw

– Corn stover

Gas Distribution

– Low pressure

– Plastic lines

Efficiency overall 42 - 48 %

– Cold gas efficiency 70 - 75% 

– Cooking efficiency 65%

Investment costs 200 $/household
Shandong Village Energy System

> 20 Village Demonstrations
DOE’s Small Modular Biopower

Projects

To provide power in the 5 kW - 5 MW range

To develop small modular biopower systems that:

are fuel flexible

are efficient

are simple to operate

have minimum negative impacts on the environment

are for domestic and international markets

Multi phase Project:

Phase 1: Feasibility Studies

Phase 2: Prototype Development and Testing

Phase 3: Integrated Systems Demonstration

Team Management - DOE, NREL, SNL
DOE’s Small Modular Biopower

Projects

Phase 1 Contracts Awarded

Agrilectric Fluid-Bed Combustor/Steam Turbine 500 - 5000kW

Bechtel Gasifier/Engines/Gas Turbine 500 - 1500kW

Bioten Direct-Fired Combustion Turbine 5000kW

Carbona Corp Gasification/ Steam Turbine 1000 - 3000kW

Community Power 

Corp Gasification/IC Engine 10 - 25kW

EERC Fluid-Bed Combustor/Steam Turbine 500 - 5000kW

Niagara Mohawk Gasification/IC Engine/Gas Turbine 500 - 5000kW

Reflective Energies Gasification/Gas Turbine 100 - 1000kW

STM Gasification/Stirling Engine 25 - 70kW

Sunpower Gasification/Stirling Engine 1 - 10kW
N

N

N

N

N

N

F

Biomass

Feedstock

25 kg

gas

25

kWh

Electricity

50 kWh

Heat

Fan

Electric

Generator

Stirling

Burner Gasifier

Feed

Screw

Fuel Bin

Stirling PCS

Stirling

Engine

Biomass fueled Stirling Engine

Proof of concept demonstrated in USA and Europe
Fuel

Generator

Recuperator

Comb

Heat

Innovative Turbine Concepts

Reflective Energies

Central Problem in Gas

Compression

Requires clean gas (particle and tar

free)

Low Calorific Value Gas

Combustion

Challenge to existing turbine designs

Novel Concept

Catalytic combustion

Use of turbine inlet compressor

– To compress a fuel and air mix

Applicable to a wide range of turbines

– Micro-turbines 40 - 75 kW

– Multi-MW units
Conclusion

Key Elements for Development

Ability to use Agricultural Residues at High Efficiency

Fuelwood declining

Ag crops increasing, Urban/Village wastes growing problem

Future Systems Have to make Productive Use of Heat

All systems are heat engines

– Turbines and Stirling concepts can produce high quality heat

Environmental Performance Improvements are Needed for

GASIFIERS-IC Engines

Overall system performance with respect to

– Air emissions - Nox, CO and particulate

– Water emissions - particulate, tars, phenols

Advanced Technologies

Increased efficiency

Potential synergy with automotive and other developments to

reduce costs
Acknowledgments

The mistakes and omissions are mine!

The NREL Team: Rich Bain, Kevin Craig, Helena Chum, John Scahill, Matt

Ratcliff, Esteban Chornet

The China Team: Deng keyun, Dai lin, Li jingming, Sun li, Bai jinming, Zhang

zhengmin, Li jingming, Wang yaojun, Luo weihong

Thomas B. Reed (doing a gasification survey!)

Ed Gray- Antares, Stephen Brand - Thermogenics, Inc., Rob Walt - Community

Power Corp., Eric Larsson, Princeton, Prof. H.S. Mukunda IIS-Bangalore, Stephen

Joseph -BEST, Lennart Johansson - STM, Serge Adamian - Ecotrade, Edam

Prabhu -Reflective Energies, Dean B. Mahin Consultant, Lakshman Velupillai -

LSU, Pat DeLaquil -EnergyWorks, Hubert Stassen -BTG, John Black -BBC

Engineering, Mark Paisley -Battelle.

Work carried out under the USDOE - OUT Power Program -Gary Burch and Ray

Costello

NREL is a national laboratory of the USDOE managed by Midwest Research

Institute

Contract DE-AC36-83CH10093











Village Power '98 October 1998

Alaska State Energy Office Page i

DIESEL RETROFITS:

THE ALASKAN EXPERIENCE

Prepared by:

Richard Emerman

Alaskan State Energy Office

333 W. 4th Avenue

Division of Energy

Anchorage, AK 99501-2341

Prepared for:

Village Power '98

World Bank Headquarters

Washington, D.C.

October 6 - 8, 1998
Village Power '98 October 1998

Alaska State Energy Office Page 2

1. There are about 150 remote villages in rural Alaska – a lot of villages but the median village size is small, only about 250 people. The overall population of rural Alaska is also

very small – only about 75,000 people altogether. Alaska is almost entirely undeveloped

and these villages – nearly all of them without road access – are about as remote as any

settlements could be. They are almost entirely dependent on oil fuels for heat, transportation, and electric power. Most are located along the coastline or on navigable rivers, and

where a viable economy exists, it is typically based on commercial fishing.

There have been major improvements in living conditions over the last several decades –

especially since oil development took off about 25 years ago: improvements in education,

communication, housing, and health. A major government initiative to bring adequate

water and sewer facilities to rural villages has made a tremendous difference and is still

under way. Access to electric power is now essentially universal. Compared with many

developing regions in the world, the material standard of living in rural Alaska doesn’t

look bad at all.

There are some surprising pockets of real prosperity as well, but village life overall still revolves mostly around the daily and seasonal demands of subsistence hunting and fishing,

supplemented by a limited cash economy. Average cash income is very low compared

with urban Alaska or with the rest of the country, and the prospects for major gains any

time soon aren’t good. It is difficult to come up with a scenario of solid economic growth

on a broad scale in rural Alaska – the resources just aren’t valuable enough in most instances to overcome the logistical challenges and costs.

2. Although average incomes are relatively low, costs are high. Retail residential rates for

electric power are typically in the neighborhood of 40 cents per kWh, compared with

about 10 cents in urban communities. Because electric power for nearly all of the villages

is supplied by isolated diesel power plants, it is often assumed that this 30 cent differential

is primarily due to the high cost of fuel. But, as many of you know, that is a mistake. The

cost of diesel fuel in rural villages is typically around 7 cents per kWh. By comparison,

the cost of fuel in Anchorage – Alaska’s largest city where most of the power is generated

by burning natural gas – is about 2 cents per kWh. A difference of 5 cents per kWh in fuel

costs is significant but doesn’t go very far in explaining a 30 cent differential in retail rates.

What the State has done for the last 15 years or so is to fund a rate subsidy program for

rural villages that, on average, pays out about $550 per year to each residential customer,

which is about half of the typical residential bill. That’s a very effective way to lift the cost

burden from rural electric consumers in the short term. And realistically, the subsidy program is sustainable financially over the long term if the politics would permit it. But the

politics probably won’t permit it and, besides, a genuine reduction in electricity costs, if it

could be accomplished, would be a much firmer foundation for whatever economic development might be possible.

3. So how can actual electricity costs be reduced? What seems to explain most of the urban/rural differential in retail power rates is simply economies of scale – each isolated vil-
Village Power '98 October 1998

Alaska State Energy Office Page 3

lage requires a relatively high level of fixed costs, consisting of its own power plant, operators, and management. Because opportunities to increase power sales within the village are very limited or nonexistent, we continue to look at two other approaches to improve scale economies:

A. The first is to build transmission lines between villages so one or more diesel

power plants can be turned off. But this has nearly always proven to be uneconomic given the relatively long distances between villages and small village loads.

B. The second approach is to seek administrative economies of scale by merging utility organizations, even though independent power plants must still be operated and

maintained. We have found some advantages in doing this, but near term rate reduction is not one of them. What we find instead is that regional utilities tend to

take on costs that individual villages typically do not, such as a higher level of preventive maintenance as well as property damage and liability insurance. In our experience, rates tend to go up as a result of rural utility mergers rather than down.

4. We have tried to improve energy efficiency by using the waste heat from the diesel engines

to supply district heating systems. But after building about 10 of these, we are hard

pressed to find any more village locations where the cost of the district heat system can be

recovered from the value of the waste heat. The heating loads tend to be too small and

too widely dispersed.

5. We have tried a number of renewable energy options and continue to do so. Some have

been more successful than others. I’ll touch on them briefly:

A. The State of Alaska spent over $5 million trying to develop a geothermal power

plant in the geologically active region of the Aleutian Islands. This particular

prospect, which is the best prospect we know of, is located near a volcano a few

miles from one of the most productive, high volume fish processing communities in

the United States. The processors currently supply their own power from diesel

generators and would have been interested in buying from the geothermal plant except for two problems. One was that, despite proposed government subsidies of

up to half the capital cost of the project, the projected cost of power was still not

quite competitive with diesel. The second was that, due to the unpredictable nature of the fishing industry, none of the processors were willing to sign long term

commitments to purchase power at any price. And without long-term purchase

commitments, conventional financing for any portion of the project was not available. So the project appears to be dead for the foreseeable future.

B. There has been some consideration of photovoltaics, but PVs have not made any

headway with village utilities although they are widely used by industry in supplying power to remote, unmanned locations such as telecommunications facilities.

The obvious obstacle in rural Alaska is that energy demand peaks during the winter when sunlight is in short supply. This problem can be solved for a price if
Village Power '98 October 1998

Alaska State Energy Office Page 4

enough panels and batteries are installed but, to date, we haven’t seen any numbers

that suggest it is economically feasible to do so.

C. Small hydro projects have been built successfully in a handful of villages – nearly

all of these are run-of-river projects with no dam or impoundment, and nearly all

have required sizeable government subsidies. Most villages in rural Alaska do not

have suitable hydro sites anywhere nearby. A number still do, however, and we

are finding that private utilities and independent power producers are able to build

these projects at much lower cost than the State government had previously projected, and they are building them reasonably well. In fact, the Division of Energy

has just issued its first market-rate loan to an independent power producer to build

a small hydro project in rural Alaska without any government grant support at all.

A rural utility that is now running diesel engines has committed to buy that power.

Small hydro can still make a contribution if private developers can continue to cut

costs.

D. Finally, although there may not be a lot of sunlight in Alaska during the winter,

there is plenty of wind. The State and federal governments are presently funding

wind demonstration projects in two communities in rural Alaska – one a relatively

large regional center and the other a small village. The State has been asked a few

times over the last couple of years to issue grants for additional wind projects but

our policy has been that we cannot recommend them for small, rural utilities until

they are proven under Alaska conditions with respect to performance, durability,

and cost. So we are waiting for the results of these demonstration projects and are

hoping that the results will be clear enough to support such conclusions. This

leads back to the question of “scaling up”. Not scaling up access to electricity in

rural Alaska, since this has already been achieved – but rather scaling up the application of renewable energy – in this case, wind.

During the 1980s there were about 100 wind turbines installed in Alaska. As far as

we know, few of these operated for more than a year and those that did required

major additional investment. People remember this, and the natural legacy is

skepticism. So there are questions on long-term performance and concerns about

the complexities of maintenance and repair that will be difficult to answer in a 2-

year demonstration project.

6. Beyond this, it should be kept in mind that every purveyor of a project or a technology

brings along the output of a computer model showing that their project or technology has

the lowest long-term cost. It may be obvious but I’d like to say that it is not enough to

evaluate project economics with a complex computer model and a statement of factor inputs and results. Without sacrificing depth, greater simplicity and clarity is needed in economic evaluations of renewable energy, as well as clearly favorable results, before most

rural Alaska utilities would consider launching into a new technology and before the State

could recommend it. Diesel generators are nearly universal in rural Alaska not because of

market failure, but because they do well on a broad range of criteria compared with the
Village Power '98 October 1998

Alaska State Energy Office Page 5

competition. At least in Alaska, I believe that economic and financial evaluation of renewable energy demonstration projects must be given a higher priority if the widespread

adoption of these technologies is going to occur any time soon.
1

The Provision of Access through the Expansion of Micro Hydro and Mini-grids

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Andrew Barnett

Research Associate

Overseas Development Institute

London

Draft of 25 September 1998

1 An introduction to the main issues

1.1 It is a basic hypothesis for many people that micro hydro power schemes1 involve a

mature technology that in certain circumstances can provide $access# to electricity and

motive power to relatively poor people on a financially and environmentally sustainable

basis2. 

1.2 If this is a mature technology, the argument goes, is it now time for the grant-aided

sector (of both official development assistance and non-governmental organisations) to

hand over the challenge to the private sector and let them take up this technology and

run with it. 

1.3 It is certainly the case that the NGO sector, which has been a major promoter of the

technology (at least outside China) cannot expand the scale of its operations without

major private sector involvement. However, the evidence that micro hydro is a secure

and profitable investment does not yet appear convincing to a significant number of

financial institutions.

1.4 The answer to these issues has many points of entry: first, the evidence that micro

hydro is financially profitable is not yet established (particularly in forms and from

sources that investors find credible). Second, the growth and sustainability of the

micro-hydro sub-sector depends on certain types of infrastructure and institutional

investments. But it is not yet clear which of these is essential and how they are best

financed. Third, the value of electricity to poor people may well exceed their ability to

pay for it. This paper, and the on-going research upon which it is based3

, will try to

shed light on these issues.

 1 Micro hydro in this context is defined as being in the range 10 to 200 kW.

2

. See for instance, Rural Energy and Development: Improving Supplies for Two Billion People. 

World Bank, 1996

3

. This research is being carried out by Intermediate Technology under contract to the UK

Department for International Development as part of the World Bank s programme to determine best practice

in a number of areas of rural energy development. The project leader is Dr Smail Khennas

(smailk@itdg.org.uk), and research teams have been established in Nepal, Sri Lanka, Peru, Zimbabwe, and the

UK.
2

1.5 But first it is important to clear up a possible source of confusion. Aid Agencies

(including the World Bank) start from a concern about providing access to $modern forms

of energy# to resource-poor and marginalised people. Recent understanding suggests that

even relatively poor people already spend considerable cash sums to meet their energy

requirements (particularly for electricity, through batteries, and lighting, through

kerosene). Suppliers of equipment, and supporters of particular technical options are

interested in expanding their sector and selling their product. While increased sales

(diffusion and market penetration) may help poor people, they do not necessarily do so. It

is therefore important to distinguish between policy interventions that are primarily

intended to increase sales (in this case) of micro hydro and those that are intended to

increase the $access# of specific groups of people who are particularly resource-poor or

live in remote areas (that will not be reached by the central grid for some time, if ever). 

Failure to make this clear appears frequently to result in disappointment and to ineffective

policy advice4

.

1.6 A number of commentators now see the most pressing issue is to find ways of using public

(soft) fund to $leverage# private (hard) funds from the private financial institutions to

expand the access of renewable energy to relative poor rural communities, in some form of

$public/private# initiatives5

. This is probably a more interesting reformulating the more

long standing arguments over the treatment of $subsidies#. The issue now is not so much

whether there should be subsidies (even the World Bank and IMF believe there are

occasions - such as through the Global Environment Fund - when subsidies are justified),

but rather the question is how to use public (and charity) funds in this sector in ways that

are innovative and stimulating rather than stultifying and bureaucratic6

.

1.7 But the design of mechanisms to leverage of public and private finance depend heavily on

whether the problem is how to kick start $an infant industry#, or to compensate for the fact

that the target $customers# do not have sufficient purchasing power to enter the market at

all.

2 Background

2.1 There is now a quite wide range of experience in providing access to electricity for

resource poor people. The largest experience is probably from China and Vietnam, but

while these provide valuable lessons in terms of the technology, their unique social

context, and the little documentation (so far) in English, limits their usefulness to the

 4

. This confusion is well documented in the case of attempts to market photo-electric systems in India,

where attempts to increase sales require quite different business choices from attempts to enable resource-poor

people to gain access to PV systems (see PhD thesis by Damian Miller, Judge School of Management, Cambridge

University UK, forthcoming).

5

. $Financial Intermediation in Support of Small-Scale Energy Investments# a report to the World Bank by

deLucia and Associates July 1998. See also Russel J de Lucia Availability and Access for financial support for

renewables: issues and an illustrative innovation, Natural Resources Forum Volume 22, Number 2, May 1998.

6

. These issues are discussed in more detail in a note by the author relating to the situation in Nepal.
3

current discussion. Similarly there are many lessons to be learned from OECD countries,

particularly about financial and institutional innovation with but they are outside the direct

scope of this paper.

2.2 The following table provides a summary of the experience of a number of countries with

micro hydro programmes, and suggests that there is a huge diversity of experience and

success.

Maturity of programmes Strategy

Nepal

Several hundred schemes.

Subsidies through the Agricultural Development Bank

of Nepal, and focus on developing the manufacturing

sector.

Sri Lanka

Over 40 schemes

Institutional and managerial innovation through the

creation of Electricity Consumer Societies in the

target villages.

Peru

Over 20 schemes

Innovations through a revolving fund based on InterAmerican Development Bank loan.

Zimbabwe/Mozambique

Less than 10 schemes

Experience of transferring Asian experience to the

quite different circumstances of rural Africa.

2.3 Micro hydro, like many other renewables, is characterised by high up front capital costs,

and low running costs, relative to the alternatives such as diesel generators. And as with

many other means of generating electricity (ie except modules of PV) there are economies

of scale particularly in distribution and transmission, such that the geographic density of

demand, and the characteristics of the load (daily and seasonal peaks) makes a

considerable difference to the viability of electricity supply at a particular location. The

growth of micro hydro has been limited in some areas because the primary demand is for

electricity for lighting, but unlike other productive uses, tends not to generate an adequate

increase in cash flow. Related to this, the costs of end-use equipment is always significant,

and may well represent more of a cost burden to consumers than gaining access to

electricity supply.

3 An analytical framework

3.1 The early work on the economic analyses of renewables (or small scale decentralised

energy supply options more generally) focussed on the $micro# analysis of individual

investments. Unfortunately such analyses rarely compared the costs of one option against

the costs of the best alternatives, and so were of only limited value to policy makers or to

consumers. 

3.2 These micro analyses also tended to neglect (or find difficult to deal with) the costs of the

systems involved in supporting and marketing larger numbers of installations. In work
4

carried out in the late 1980 s by IDRC7 all the costs of these $macro# level inputs were

referred to as the $system overhead costs# Such costs range from R and D to training of

manufacturers, the identification of sites and equipment, the community development

necessary to get communities to take ownership of the plant, design and installation,

trouble shooting, repair and maintenance systems etc. What became clear, as these costs

began to be uncovered, was that existing $conventional# technologies, such as diesel

generators, had a considerable advantage in that the massive systems in support of these

technologies were already in place (often as $sunk costs#).

3.3 A key issue in the current policy debate is the identification of these activities at the macro

or sub-sector level and how their costs are to be covered, and by whom. To some extent

the costs are included in the price paid by the plant owner, but more generally they are

paid (directly and indirectly, knowingly or inadvertently) by NGO and other agencies as a

form of a grant or subsidy.

3.4 It is important to recognise that these are real costs and that real activities need to take

place, how ever they are paid. As the sector is expanded there may well be $economies of

scale# in that some of these costs will fall in relation to each hydro plant installed. But

equally, inputs that are currently supplied at no cost (because the input is small or is

provided by enthusiasts) may well have to be provided for directly if the sub-sector is to

expand successfully. Neglect of these activities and their associated costs in any attempt

to replicate hydro development in other countries is likely to undermine the sustainability

of the sector.

3.5 The current challenge is how to bring together all these diverse concerns: the micro and

macro analysis, the question of costs and who is to cover them, and efforts to combine

public and private initiatives. One approach that appears to offer considerable analytical

insight is to draw on the idea of $financial intermediation# and consider three additional

forms of intermediation, namely technical intermediation, social intermediation and

organisational intermediation8

.

3.6 In this approach an attempt is made to identify all the activities associated with the

installation and operation of the individual plant (and quantify the associated costs) for all

of the various actors (manufacturers, contractors, plant owners, customers and other

beneficiaries, government, banks, utilities, and the various $intermediators#).

3.7 The interest in intermediation derives from the observation that many of the so-called $win

win options # in the area of energy and environment are not being implemented to the

extent predicted. Various skills and enthusiasms are needed to get the schemes going and

these things have costs. But current experience is suggesting that private financial

institutions cannot or will not cover all or most of the cost associated with organisational

 7

. The Diffusion of Energy Technologies in the Rural Areas of Developing Countries: A synthesis of

recent experience# edited by Andrew Barnett, World Development, Volume 18 Number 4, April 1990, pages 539-

615.

8

. The various types of $intermediation# are described by DeLucia in his report mentioned earlier. See

also the work of Lynn Bennet at the World Bank on $social intermediation#.
5

and technological intermediation, and probably will have considerable difficulty in covering

the relatively high transaction costs of even $retailing# their capital resources.

3.8 Organisational Intermediation involves not only the initiation and implementation of the

programme, but also the lobbying and policy change required to construct an

$environment# in which the technology and the various players can thrive. This will

involve putting in place the necessary infrastructure, and getting the incentives firing the

right way to encourage owners, contractors, and financiers. 

3.9 Such organisational intermediation is probably usefully distinguished from the Social

Intermediation involved in the identification of owners and beneficiaries and the

development of the capacities necessary to take on and run each individual investment

project. Social intermediation plays a major part in taking on the transaction costs that

communities would have to incur if they themselves were to source, select and contract

suppliers of everything from money and to machines.

3.10 Technical Intermediation may well have to start up stream by undertaking the necessary R

and D, the importation of the technology and know-how, $down# through to the selection

and development of the capacities to supply the necessary goods and services (site

selection, system design and technology acquisition, construction and installation of civil,

electro-mechanical and electrical components, operation, maintenance, Trouble Shooting,

overhaul and refurbishment).

3.11 Financial Intermediation ranges from the $bundling# of projects together to make them

attractive to finance agencies, dealing with the transaction costs of administering loans,

assessment and assurance of the financial viability of schemes, assessment and assurance of

the financial credibility of borrower, supply of wholesale finance (from aid agencies,

governments, development banks), supply of retail finance (equity finance, loan finance),

the management of guarantees, collateral ($financial conditioning#) and the management of

loan repayment.

3.12 These types of intermediation, which in practice will overlap and may be carried out by the

same agencies, form the link with and between the numerous actors involved in micro

hydro development. Even in a modest hydro development programme these are likely to

involve: the government (national and local); the utility; the main change agents, the

project developers or $agents#, the aid agencies; the financial institutions; the equipment

manufacturers, assemblers and suppliers; the providers of Technical Assistance; the

contractors; the plant owners; the community developers ($animators#); the Communities;

the beneficiaries (and indeed the people bypassed or harmed by the investment)..

3.13 Each of the functions carried out by $intermediators# operates on the context in which

hydro development occurs. The viability of micro hydo is clearly context specific. But

this specificity refers not only to the location of a particular site (is there enough water and

enough concentrated $demand#) at the micro level of analysis, but also at the specifics of

the institutional arrangements at the macro level. The development of micro hydro has

required one or more organisation to develop the national energy context and policy in

ways that support (or are at least not hostile to) micro hydro. The characteristics of a

favourable $enabling environment# are relatively easy to list, but often require huge effort
6

to put in place. They include policies for domestic direct and indirect taxes and subsidies

(on things like equipment, training, R and D, surveys etc); import taxes, rules for

depreciation and so on. In practice much of the pre-existing policy environment have

unplanned and negative effects on the hydro sector, but are kept in place by the powerful

forces that benefit from them.

3.14 Micro hydro development will also be helped or hindered by the regulatory context in

which it operates (and the extent to which regulations are enforced). Usually there will be

regulations about who can generate and sell electricity; and regulations covering both

finance and construction (such as Health and safety in construction, safety standards for

electricity installations, and environmental standards) but there may also be regulation of

competition between energy supply options, water resource use, and land ownership

(access and rights of way).

3.15 Intermediation also takes place in the context of the many markets in which micro hydro is

to be developed. Certainly, in some countries there is concern as to whether there is a

sufficiently large market to sustain more than a very few contractors and suppliers. And it

is to be expected that, in remote locations, particular suppliers will have local monopolies.

 The local market will be influenced by these local monopolies and the effects of subsidies

in the hydro and related sectors, and of course from competition from the grid, PV, diesel

and other energy sources. The market itself will be strongly influenced by the capacities,

skills and experience of the various actors involved. For instance, the market for finance

for micro hydro plant is likely to limited because financial institutions will have little

experience of the sector on which to base their judgements about projects and clients.

3.16 So this is the background, the hypotheses and the analytic framework for our analysis. 

The search is now on to identify and describe the $best practice# and innovative

arrangements for dealing with each of them. In what follows, secondary sources of

information are used to provides insights into some of these issues (though of course any

errors of fact or interpretation remain the author s responsibility!)

4 The case of Peru9

4.1 One of the most successful programmes to develop micro hydro has been in Peru. The

main innovation would appear to be the experience of a revolving credit fund, financed by

a soft loan from the Inter-American Development Bank.

 9

. The information in this section is largely taken from the paper by Alfonso Carrasco V

$Alternatives for Rural Electrification# (June 1998) available from ITDG in Peru ( Karina@itdg.org.pe),

and from other internal documents from ITDG.

4.2 After the technical issues had been largely mastered in the early 1990 s, the main difficulty

appeared to be the lack of access to finance in general, and the lack of financial

intermediaries who could $retail# credit in the rural areas in particular. It also became

clear that the State was unwilling (even if it were able) to provide substantial grants to the
Â Andrew Barnett (phone +44-(0)1273-506258, Fax +44-(0)1273-506258, e-mail: abarnett@pavilion.co.uk)

Page 7

micro hydro sector, because it was focussing it resources on the power grid. This led to

the development of a revolving fund by the $intermediary# Intermediate Technology(IT),

with resources provided by the Inter-American Development Bank. There was a soft loan

of $400,000 (1% service charge and repayment in 25 years in local currency) and a

technical assistance grant of $120,000. Since its initiation in 1992 this fund has now

resulted in the installation of 15 plant. $465,718 worth of loans have been disbursed and

these have drawn in other funds to a total value of $1.7m. The installed plant have ranged

in size from 175 kW down to 3 kW with an average of 40 kW. The capital cost has

averaged $2,874 per kW installed (giving an average cost per installation of $115,333).

4.3 Of the 15 loans, 5 were to individuals and 10 were to $municipalities# (as village

organisations - Comités de Gestión -did not have legal status to accept loans). A certain

amount of social intermediation was necessary to form these pre-electrification

committees or other ad hoc organisations to operate and maintain the plant. The

investments appear secure, but again considerable effort and cost is associated with

building the necessary capacities to operate and maintain the plant and to administer the

collection of tariffs. Only time will tell if this has been sufficient.

4.4 The lack of local financial intermediaries meant that the programme sponsors,

Intermediate Technology, had to set up a $Credit Operator# to provide financial services

such as financial assessment of each loan applicant, appraisal of each scheme,

administration of the loans and their recovery (although Intermediate Technology

remained responsible for the $wholesale# loan from the IDB). IT felt that it was essential

that the financial intermediary operated at arms length from technical and organisational

intermediation.

4.5 While this arrangement has worked very well, with very high loan repayment levels, two

problems quickly emerged. First, that even with low interest rates, there was little demand

for micro hydro. Considerable time and effort had to be expended to $market# both the

fund and the idea of hydro. Potential consumers would also have had to incur

considerable $transaction costs# to locate the technology, contractors and finance if IT had

not acted as intermediary. These were costs that could not be carried by the financial

intermediary, nor by the loan charges (interest and administrative fees).

4.6 And second, even when the demand did pick up, rural communities (where households are

said to have an annual income of $50010) could not afford the full cost of the plant. At the

current time for every $100 spent on a project:

$27 is covered by a loan and spent largely on equipment

$43 comes from grants and is spent on civil construction and distribution

lines

$13 grant to TA and $promotion# of the demand

$17 is the equity contribution from the owners and is supplied in part by

contributions in kind such as labour.

 10 It is not clear from the report whether this is a per capita income, or a total household cash income.
Â Andrew Barnett (phone +44-(0)1273-506258, Fax +44-(0)1273-506258, e-mail: abarnett@pavilion.co.uk)

Page 8

5 The case of Sri Lanka11

 11. This case draws largely on the work of Dr Moira Tampoe s draft evaluation report on micro

hydro development for ITDG in Sri Lanka , 1997, Draft (contact Lahiru Pereira, E-Mail:

lahiru@itdg.lanka.net).

5.1 Sri Lanka also represents a very positive experience with micro hydro. The programme

has essentially consisted of four strands: an effort to develop the technology and local

capabilities through the rehabilitation of hydro on the Tea Estates; a village hydro scheme

with a strong emphasis on community development; the nurturing of a group of village

hydro specialists who act as $catalysts#; and, following the liberalisation of the power

sector in 1994, grid connected systems. Approximately 40 village hydro plant have been

constructed (or are nearing completion) in the 1990 s.

5.2 The programme has had considerable success in absorbing the technological know-how

and improving it through local manufacture (including electronic load controllers and the

use of electric motors as generators), developing local capabilities in manufacture and

installation, and in pushing for changes in the regulations to provide a viable standard for

grid connection.

5.3 The village hydro programme set considerable store by the creation and involvement of

Electricity Consumer Societies (ECS) who are responsible for implementing and operating

each scheme. Extensive community development skills are deployed by the social

intermediators to identify project $initiators# (who ideally become the Founding President

of the ECS, so as to allow the leadership qualities of other village members) and to deal

with the various village factions identified in preliminary socio-economic surveys of each

site.

5.4 As the programme developed it has been possible to build up the capacities of six

$manufacturer/catalysts# to guide ESC at the implementing stage, and to provide an

outreach services to neighbouring areas. These grass roots specialists are enterprising

individuals who usually come from within the villages with access to hydro electricity.

5.5 Substantial variation has been experienced in the cost of installations (partly as a function

of variations in the standards which the different funding source stipulate), and that plant

below 5kW are significantly more costly than those above this figure. Very approximately

(using 56 Rupees to one US dollar, and taking no account of the changes in currency

values over the 10 years of the programme) the average of cost of the small plant is

$2,500 per kW, and the cost of the larger plant is $1,500 per kW. This means that a

typical plant (eg the one at Andaradeniya) had a total capital cost of UD$ 39,200, for an

installed capacity of 23 kW, supplying electricity to 100 beneficiary households ($392 per

household) and 2 households were excluded by their remote location. The most expensive

plant in terms of installed capacity (at Weddagala) cost $14,400 for 5kW ($2,880 per kW)

for 25 households ($576 per household) and ten households were excluded.
Â Andrew Barnett (phone +44-(0)1273-506258, Fax +44-(0)1273-506258, e-mail: abarnett@pavilion.co.uk)

Page 9

5.6 At the initiation of the programme it was accepted that people in these relatively remote

areas were unlikely to be able to meet a substantial part of the cost of the schemes. There

were considered to be part of the social infrastructure such as feeder roads, or water

supply. But the scheme promoters (Intermediate Technology) insisted that the ECS

provided 30% of the capital cost of the project and this would be provided in $cash, kind

and sweat equity#, and would cover civil works and transmission. A survey at the end of

1996 showed that most consumers pay less than one rupee per watt, averaging 50 rupees

per month ($11/year) for each household (whereas a tariff which covered capital and

operating costs would probably range from 80 to 170 rupees per household per month

($17-$36/year)12.

 12. Village Hydro Monitoring Report, November 1996, IT Sri Lanka, page 38. A rate of 56 Rupees to

one US dollar has been assumed. It would appear that the tariff rates remain largely unchanged even in the face of

inflation.

5.7 From the point of view of mini-grids, it is interesting to note that the ECS were able to

contribute their 30% of the cost to cover the civil works, but were often unable to raise

the funds from their own resources to cover the cost of the transmission. They frequently

had to seek supplementary funding from the Provincial Councils for this, thereby adding

delays to the project implementation (often over a year), though in the end their

perseverence resulted in success. The costs of transmission are greatly affected by the

standards used, and where the Ceylon Electricity Board (CEB) Standards were use the

cost could rise substantially.

5.8 Similarly house wiring costs have risen dramatically over the years from 2-3000 Rupees in

the early 1990 s to 4-8,000 rupees in 1997 ($70-$140). The standards required in

schemes implemented by the CEB costs were as much as 11,000 rupees (nearly $200) per

household.
Â Andrew Barnett (phone +44-(0)1273-506258, Fax +44-(0)1273-506258, e-mail: abarnett@pavilion.co.uk)

Page 10

5.9 The electricity is used primarily for lighting and cassette radios, (but surveys also show

some ownership of TV, electric irons and heaters). It is recognised that the financial

viability of plant would be increased if cash generating end uses were included in the

schemes (for instance battery charging and rice milling). In one case where there is a mill

attached (Katepola), it was able to operate only 2 days a week, and while it does add

significantly to the cash flow of the hydro scheme it would not be able to if it had to cover

a commercial rate of interest on the mill itself13.

5.10 Village hydro in Sri Lanka is now moving into a more commercial phase with attempts to

introduce more commercial funding and to set up the catalyst/manufacturers as small

businesses. The recently started World Bank s Energy Service Delivery Project (WBESDP) includes village hydro and has a grant component (funded by the Global

Environment Facility) which softens the terms of commercial money by extending its

payback period from between 2 and 5 years to ten years.

5.11 The Waddegala scheme mentioned above is also funded in part by a loan from the Hatton

National Bank (negotiated before the WB-ESDP), with a grant from the Rotary Club of

200,000 Rupees ($3,500). The interest is at 20% over 5 years. Repayments were

reported to be $satisfactory and on schedule#. 

6 The lessons learned

 13. $If the capital cost recovery is also calculated [the] rice mill will not be a profitable venture#

Monitoring report 1996, page 63. But this should be contrasted with the statement in a more recent sources which

states that $the income from the mill has been more than satisfactory and is an indicator of the economic viability of

rice milling as a hydro end use#, Tampoe, op cit, page 82, quoting 1997 data.

6.1 The first lesson is that while huge progress has been made in developing and

understanding the technology, many of the plant examined are not (yet?) financially

sustainable in the sense of bing able to recoup the full capital and running costs of the

installations from revenues. Probably those larger plant that can be sell surplus power to

the grid are far more financially attractive than plant that are primarily concerned with

increasing access which are by definition remote from the grid. This must be a cause for

concern, and until there are reliable data on costs and performance of a large sample of

micro hydro plant, risk averse funding institutions will remain unwilling to invest.
Â Andrew Barnett (phone +44-(0)1273-506258, Fax +44-(0)1273-506258, e-mail: abarnett@pavilion.co.uk)

Page 11

6.2 Second, the schemes in both countries described are making efforts to blend hard and soft

money. This is an important trend if the sector is to be scaled up. But there are two clear

consequences of this. Rightly, there will be greater pressure to undertake schemes with

end-uses that generate a cash flow. This suggests that funding schemes will probably need

to include complementary $down stream# investment in the funding packages14. But more

troubling for people, such as the World Bank, concerned primarily about $access for poor

people#, will be the pressure to locate plant only in those areas that already have an ability

to pay commercial rates of interest.

6.3 Third, the success of the current schemes has involved very active $intermediation# both at

the macro level and at the micro level. Funding packages have needed to be put together

from a wide range of funding sources, and time has to be spent begging for charitable

donations to cover a large element of these transaction costs (though, there appears to be

sufficient grant funds available for Micro hydro for those intermediaries with sufficient

skill and persistence). It is not clear which of these tasks will be necessary in future, nor

indeed how they can be delivered more cost efficiently in future (there are both economies

and diseconomies of scale, but it is not yet clear which will rise or fall as the programmes

are scaled up).

6.4 It seems probable that $soft# grant money will be required for some time to come. It will

be required to enable people with insufficient purchasing power to gain access to

electricity, to assist in the building of technical and other capacities in which the private

sector tends to under invest (as the value of trainees is lost to them when staff move from

one job to another), and to finance the finance the necessary intermediation and credit

retailing.

6.5 Experience also suggests that the use of soft money can both help the expansion of the

sector and harm it. The whole question of support to the sector (including subsidy, and

tax policies) needs to be thought through both to establish which are necessary conditions

for expansion and to define more clear what is best practice. The reasons why agencies of

the state (whther national or multinational) should intervene are clear in the most general

terms (to remove a hostile $enabling# environment, because there are clear externalities

(health, educ, welfare, income, environmental); to kick start an infant industry; and for

reasons of equity and human rights. But as always the $devil is in the detail# and in the

specifics of each context.

 14. This was one of the implications of the seminal work by Fred Fluitman, published in 1983! (The

socio-economic impact of rural electrification in developing countries: a review of experience, World Employment

Programme Research Working Paper, WEP 2022/wp 126, ILO
Annex 1: 

A check list of options in considering the support necessary to expand and sustain the

development of the Micro Hydro Sub-Sector.

The Ownership Options

how are the projects put together

What forms of ownership operate and why (is there a trade-off between the

profitability of the plant, the type of owner - utility, individual or community - and

of the type of beneficiary?)

The organisation of social and other pressure to repay loans

The Financial Options

how is the problem of high pre-investment costs dealt with

how is the problem of high cost of administering large numbers of small loans

how is technical assistance and the provision of financed linked - putting the

$package together#.

Tariffs (price per kWh) versus flat (capacity) charges

Metering as a option (prepayment as an option)

The Technology Options

What is the pre-existing technical capacities of Manufacturers, Contractors and

system designers (and how much do they need to be enhanced).

How to identify, build and pay for the capacity to manufacture, install, maintain

and operate (who, how, when at what cost, what problems, what lessons)

The relative costs and performance of domestic as opposed to imported equipment

(particularly from China). What are the effects (costs and benefits) of local

manufacture.

How much can villagers (owners) do and how much can be contracted from

outside.

The Access Options

What effect arises from conflicts between the various objectives for MHP, such as

to maximise the sale of Micro Hydro Plant, versus the need to provide poor people

access to electricity, versus the need to protect the environment.

What attempts have been made in the selection of projects or in the design of

projects to increase the access of relatively poor people to hydro power.

Is special attention given to increasing the access of women and children to power

(should it be increased, how and why).

The Participation Options

How are the various parties consulted; What form of social organisation is

required; how can it be improved; what are the costs of doing it and of not doing

it.

The End-Use Options

Effects on the financial viability of the MHP

Novel markets

How is end use technology financed and owned.

The Environmental Options (land, diversion of water, fuel substitution etc).

Andrew Barnett (phone +44-(0)1273-506258, Fax +44-(0)1273-506258, e-mail:

abarnett@pavilion.co.uk)
The Provision of Access

through the

Expansion of Micro Hydro Mini-grids

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

Andrew Barnett

Research Associate

Overseas Development Institute

London

 ̧ An introduction to the main issues

basic hypothesis

micro hydro power schemes

involve a mature technology

that in certain circumstances

can provide "access" to electricity

and motive power

to relatively poor people

on a financially

and environmentally

sustainable basis. 

 ̧ Why is it not being taken up by the private sector

 ̊ The evidence that micro hydro is financially profitable is not yet in a form

investors find credible

 ̊ It is not yet clear what types of infrastructure and institutional support is

necessary for growth and sustainability of the micro-hydro sub-sector

 ̊ The value of electricity to poor people may well exceed their ability to pay for

it. 

 ̧ On-going research will try to shed light on these issues.

 ̊ research is being carried out by

Intermediate Technology

under contract to the UK Department for International Development

Part of the World Bank's programme to determine best practice in a

number of areas of rural energy development. 

The project leader is Dr Smail Khennas (smailk@itdg.org.uk),

 ̊ Research teams have been established in Nepal, Sri Lanka, Peru,

Zimbabwe, and the UK.
 ̧ Need to distinguish between policy interventions

Intended to increase sales of micro hydro

vs

Intended to increase the "access" of specific groups of people who are

particularly resource-poor or live in remote areas

Failure to make this clear appears frequently to result in disappointment and to

ineffective policy advice.

 ̧ "public/private" initiatives. 

reformulating the more long standing arguments over the treatment of

"subsidies".

 ̧ Micro hydro, like many other renewables, is characterised by

 ̊ high up front capital costs, and low running costs, relative to the alternatives

such as diesel generators. 

 ̊ economies of scale particularly in distribution and transmission,

 ̊ primary demand is for electricity for lighting, but unlike other productive uses,

tends not to generate an adequate increase in cash flow. 

 ̊ costs of end-use equipment is always significant, .

 ̧ An analytical framework

 ̊ "micro" analysis of individual investments. 

 ̊ "macro" level inputs "system overhead costs"

 ̊ existing "conventional" technologies, such as diesel generators, has massive

systems already in place

(often as "sunk costs").

 ̊ A key issue in the current policy debate is the identification of these activities at

the macro or sub-sector level and how their costs are to be covered, and by

whom.

 ̊ real costs and need to be paid.

 ̧ Analytical insight from

idea of "financial intermediation"

 ̧ Consider three additional forms of intermediation,

 ̊ technical intermediation,

 ̊ social intermediation and

 ̊ organisational intermediation.

"win win options" not being implemented to the extent predicted - energy to kick start them?
 ̧ Organisational Intermediation involves not only the initiation and implementation of

the programme, but also the lobbying and policy change required to construct an

"environment" in which the technology and the various players can thrive. This will

involve putting in place the necessary infrastructure, and getting the incentives firing

the right way to encourage owners, contractors, and financiers. 

 ̧ Social Intermediation involved in the identification of owners and beneficiaries and the

development of the capacities necessary to take on and run each individual investment

project. Social intermediation plays a major part in taking on the transaction costs that

communities would have to incur if they themselves were to source, select and

contract suppliers of everything from money and to machines.

 ̧ Technical Intermediation starts up stream by undertaking the necessary R and D, the

importation of the technology and know-how, "down" through to the selection and

development of the capacities to supply the necessary goods and services (site

selection, system design and technology acquisition, construction and installation of

civil, electro-mechanical and electrical components, operation, maintenance, Trouble

Shooting, overhaul and refurbishment).

 ̧ Financial Intermediation ranges from the "bundling" of projects together to make

them attractive to finance agencies, dealing with the transaction costs of administering

loans, assessment and assurance of the financial viability of schemes, assessment and

assurance of the financial credibility of borrower, supply of wholesale finance (from aid

agencies, governments, development banks), supply of retail finance (equity finance,

loan finance), the management of guarantees, collateral ("financial conditioning") and

the management of loan repayment.

 ̧ link with and between the numerous actors involved in micro hydro development.

 ̧ The viability of micro hydo is clearly context specific

 ̊ location of a particular site (is there enough water and enough concentrated

"demand") at the micro level of analysis,

 ̊ specifics of the institutional arrangements at the macro level. 

The Enabling Environment and

The Regulatory Environment

The context many markets in which micro hydro is to be developed.

 ̧ The search is now on to identify and describe the "best practice" and innovative

arrangements for dealing with each of them.

 ̧ The case of Peru

 ̊ successful programmes 

 ̊ The main innovation would appear to be the experience of a revolving credit

fund, financed by a soft loan from the Inter-American Development Bank.

 ̊ revolving fund by the "intermediary" Intermediate Technology(IT), with

resources provided by the Inter-American Development Bank. 

 ̊ soft loan of $400,000
 ̊ (1% service charge and repayment in 25 years in local currency)

 ̊ a technical assistance grant of $120,000. 

 ̧ Since its initiation in 1992

 ̊ installation of 15 plant. 

 ̊ $465,718 worth of loans

 ̊ Total investment of $1.7m. 

 ̊ Plant from 175 kW down to 3 kW

 ̊ ( average of 40 kW). 

 ̊ Av. Capital cost $2,874 per kW installed

 ̊ Av Capital cost per installation of $115,333

 ̊ Of the 15 loans, 5 were to individuals and 10 were to "municipalities"

 ̊ Village organisations - Comités de Gestión - no legal status to

accept loans.

 ̊ Considerable social intermediation to form these pre-electrification committees

or other ad hoc organisations to operate and maintain the plant.

 ̊ Sponsors, Intermediate Technology, had to set up a "Credit Operator"

to provide financial services such as financial assessment of each loan

applicant, appraisal of each scheme, administration of the loans and

their recovery

Operated at arms length from technical and organisational

intermediation.

Very high loan repayment levels,

 ̧ Two problems quickly emerged. 

 ̊ First, there was little demand for micro hydro or credit

 ̊ Second, rural communities (where households are said to have an annual

income of $500) could not afford the full cost of the plant. 

 ̧ For every $100 spent on a project:

$27 is covered by a loan and spent largely on equipment

$43 comes from grants and is spent on civil construction and

distribution lines

$13 grant to TA and ?promotion? of the demand

$17 is the equity contribution from the owners and is supplied in part by

contributions in kind such as labour.

 ̧ The case of Sri Lanka

 ̊ Sri Lanka also represents a very positive experience with micro hydro. 

 ̧ Four strands:

 ̊ an effort to develop the technology and local capabilities through the

rehabilitation of hydro on the Tea Estates;

 ̊ a village hydro scheme with a strong emphasis on community

development;

 ̊ the nurturing of a group of village hydro specialists who act as

"catalysts"; and,

 ̊ grid connected systems. 

 ̧ The programme has had considerable technological and institutional success

 ̧ Approximately 40 village hydro plant have been constructed (or are nearing
completion) in the 1990's.

 ̊ Importance of Electricity Consumer Societies (ECS)

 ̊ Extensive community development skills are deployed and various village

factions identified in preliminary socio-economic surveys of each site.

 ̊ six "manufacturer/catalysts" to guide ESC at the implementing stage,

 ̊ Substantial variation has been experienced in the cost of installations

 ̊ variations in the standards

 ̊ the average of cost of the small plant is $2,500 per kW,

 ̊ and the cost of the larger plant is $1,500 per kW

 ̧ Typical plant (eg at Andaradeniya)

 ̊ total capital cost of US$ 39,200,

 ̊ installed capacity of 23 kW, 

 ̊ supplying electricity to 100 beneficiary households

 ̊ ($392 per household)

 ̧ The most expensive plant in terms of installed capacity (at Weddagala) cost $14,400

for 5kW

 ̊ ($2,880 per kW)

 ̊ 25 households ($576 per household) and ten households were excluded.

 ̊ People cannot afford :ECS to provide 30% of the capital cost

 ̊ provided in "cash, kind and sweat equity", and would cover civil works and

transmission. 

 ̊ consumers pay less than one rupee per watt, averaging 50 rupees per month

($11/year) for each household

 ̊ full cost covering tariff which covered capital and operating costs 80 to 170

rupees per household per month ($17-$36/year).

 ̊ Had to find extra money for distribution from the Provincial Councils adding

delays to the project implementation (often over a year)

 ̊ The costs of transmission are greatly affected by the standards used, and where

the Ceylon Electricity Board (CEB) Standards were use the cost could rise

substantially.

 ̊ House wiring costs have risen dramatically over the years from 2-3000 Rupees

in the early 1990's to 4-8,000 rupees in 1997 ($70-$140). CEB costs were as

much as 11,000 rupees (nearly $200) per household.

 ̊ end uses: primarily for lighting and cassette radios, (but surveys also show

some ownership of TV, electric irons and heaters). 

 ̊ financial viability helped by cash generating end uses

 ̧ Village hydro in Sri Lanka is now moving into a more commercial phase

 ̊ set up the catalyst/manufacturers as small businesses. 

 ̊ World Bank's Energy Service Delivery Project (WB-ESDP)

softens the terms of commercial money by extending its payback period

from between 2 and 5 years to ten years.

 ̊ The Waddegala scheme

 ̊ the Hatton National Bank loan with interest is at 20% over 5 years. 

Repayments were reported to be "satisfactory and on schedule". 

 ̊ Rotary Club of 200,000 Rupees ($3,500). 

 ̧ The lessons learned
 ̊ huge progress has been made in developing and understanding the technology,

 ̧ many of the plant examined are not (yet?) financially sustainable

 ̊ larger plant that can be sell surplus power to the grid are financially attractive

 ̊ until there are reliable data on costs and performance of a large sample of

micro hydro plant, risk averse funding institutions will remain unwilling to

invest.

 ̧ the schemes in both countries described are making efforts to blend hard and soft

money.

 ̊ But

greater pressure to undertake schemes with end-uses that generate a

cash flow. complementary "down stream" investment in the funding

packages. 

pressure to locate plant only in those areas that already have an ability

to pay commercial rates of interest. (Problem of access)

 ̧ success involved very active "intermediation"

 ̧ "soft" grant money will be required for some time to come. 

 ̊ to increase access

 ̊ to build technical capacities (market failure)

 ̊ to fund the necessary intermediation and credit retailing.

 ̧ Experience also suggests that the use of soft money can both help the expansion of the

sector and harm it. 

 ̊ The whole question of support to the sector (including subsidy, and tax

policies) needs to be thought through

 ̊ which are necessary conditions

 ̊ define more clear what is best practice.

 ̧ "the devil is in the detail" and in the specifics of each context.

Andrew Barnett

Phone +44-(0)1273-506258

Fax +44-(0)1273-506258

E-mail: abarnett@pavilion.co.uk
Village Power ’98

16:30-18:00 Rural Energy Service Models - Chair, Jerry

Weingart, Weingart & Associates

•Concessions: The Argentina Experience - Aldo Fabris, Ministry

of Energy, Argentina

•Sunlight Power International Approaches in Morocco

 - Jeff Serfass and Dr. Abdelhanine Benallou, SunLight Power

Morocco

•Battery Charging in Brazil - Michael Davis, Golden Genesis

•Transition from NGO to Profit-making Enterprise - Priyantha

Wijesooriya, Sri Lanka

•Challenges for Viable RESCOs - Art Lilley, Community Power

Corporation

•Empowering Rural Villages - Charlie Gay, ASE Americas

•Solar Lighting for the Church of Africa - Bishop Alden

Hathaway, Jr.
RURAL CONCESSIONS

RURAL CONCESSIONS

THE ARGENTINA EXPERIE

THE ARGENTINA EXPERIE

Lic. Aldo FABRIS

Director for Research and Development

Energy Secretariat

Ministry of Economy and Public Works and Service

VILLAGE POWER 98 - WB - nrel - 6-8 October WASHINGTON 
THE PROBLEM/ARGENTINA THE PROBLEM/ARGENTINA

) Even 92% of the Argentinians have electricity 

around 2,5 and 3 million remain without mageographicdispersion problems.

) Reletively high number of public services with no e

supply (schools, first aid medical centers, water etc.). Nearly 6000.

) Electricity supply by grid extension not feasible du

extension costs by new incorporated user. A sArgentina shows mean values of U$S 8000/uminimums of U$S 5000/user and maximun 25.000/user.
DISPERSED RURAL POPULATION WITHO

DISPERSED RURAL POPULATION WITHO

ELECTRICITY SERVICES BY STATE (PROV

ELECTRICITY SERVICES BY STATE (PROV

(THOUSAND OF INHABITANTS) (THOUSAND OF INHABITANTS)

0

5 0

100150200250300
DIAGNOSIS DIAGNOSIS

) RENEWABLE ENERGY (SOME OF IT , TIPICAL

TECHNOLOGIES ARE ELECTRICITY SERVICES SUPPLBECAUSE THEY ARE:

– TECHNOLOGICALLY MATURE.– ECONOMICALLY COMPETITIVE.– SOCIALLY ACEPTED.

) THE MAIN DETECTED PROBLEM IS SUSTAINABILITY 

PROGRAMS WITH A STRONG EMPAHSYS IN SOCIAL WNOT LOOKIN FOR MEDIUM/LONG TERM ISSUES THAT DCARE OF:

) MAINTEINANCE AND PARTS REPLACEMENT.

– PEOPLE TECHNICAL TRAINING.– ECONOMIC SUSTAINABILITY OF SUPPLY.
ELECTRICITY SUPPLY PROGR

ELECTRICITY SUPPLY PROGR

GOAL AND GUIDELINES (PAEP

GOAL AND GUIDELINES (PAEP

) PROVIDE MINIMUM ELECTRICITY SERVICES TO DISPERS

INHABITANTS AND RURAL SERVICES (LIGTHS AND COMMUNICATIONS) USING THE MOST ECONOMIC TECHNOLO

) SHARED RESPONSIBILITY:

– USERS (THE PAY A TARIFF IN ALL CASES)– STATE GOVERNEMENTS (THEY USES HIS ELECTRICITY PR

FUND PARTIALLY FOR THE PROGRAM)

– FEDERAL GOVERNMENT (ASIST TO THOSE STATE IN WIC

LOCAL AVAILABLE FUND ARE NOT SUFICIENT

) ELECTRICITY SERVICES PROVIDED BY PRIVATE CONCE

WHOSE INCOME IS ENOUGH TO RUN THE BUSINESPREVAILING ECONOMIC CONDITIONS IN THE PRIVATE SECTO

) TECHNOLOGY FREEDOM OF THE CONCESIONAIRE BETWEEN 

OPTIONS IN ORDER THE CHEAPEST ONE BE ELECTED UCYCLE CRITERIA.
ELECTRICITY SUPPLY PROGR

ELECTRICITY SUPPLY PROGR

GOALS

) REACH WITH ELECTRICITY SERVICES TO 

INHABITANTS (315.000 users) and 6000 PUBLIC SWITH SEVERAL TECHNOLOGIES. MOST OSERVICES RENEWABLE ENERGY TECHNOLOGIBE USED.

) MINIMUM TARIFF TO USERS OF ABOUT $15 A MO) MINIMUM SERVICES QUALITY IS OF AB

KWh/MONTH.

) WORKING POSITIONS INTHE PRIVATE SECTO

CREATED.
FINANCING FINANCING

FIVE YEARS PROGRAM

) TARIFAS A USUARIOS(1) $147.000.) FONDOS ESPECIALES (2) $113.000.) FONDOS ADICIONALES $ 54.000.

TOTAL $314.000.

(1)VALOR PRESENTE NETO DE BALANCE DE TARIF

(TARIFAS - COSTOS DE O&M ) 10% - 20 AÑOS

(2)FONDOS EXISTENTES SECTOR ELECTRICO (FC
WORLD BANK RESPONS

WORLD BANK RESPONS

) RENEWABLE ENERGY PROJECT IN RURAL MARKET (P

– FIRST PHASE UP TO 10 STATES– WB LENDING TO THE ARGENTINIAN GOVERNEMEN

ABOUT U$ 40 MILLIONS.

– GEF SUBSIDY (CO2 MITIGATION) OF AROUND U$ 13

MILLIONS.

) VERY IMPORTANT TECHNICAL ASISTANCE PROGRAM 

OVERCOME THE BARRIERS FOR THE INTRODUCTION ORENEWABLES.

) WB PARTICIPATION GIVES TO THE GOA INITIATIVE CRE

WORLD WIDE.

) CREDIT NEGOTIATION SOON.
PRESENT SITUATION/ 1 PRESENT SITUATION/ 1

O DISPERSED MARKET OF SALTA PROVINCE.

– PRIVATE CONCESIONARIE SINCE SEPTEMBER/96.– 18000 POTENTIAL PRIVATE USERS.– MAXIMUN TARIFF STRUCTURE FIXED.– NO INITIAL SUBSIDIZATION. AFTER A COUPLE OF YEARS – BIDDING IN COMBINATION WITH THE CONCENTRATED M

CROSS DEFAULT PUNISHMENT.

– WINNER UNION FENOSA & EXCEL GROUP.– AROUND 130 SCHOOLS UNDER CONSTRUCTION AND 120 

TO BE COMPLETED BEFORE THE END OF 1998.
PRESENT SITUATION/ 2 PRESENT SITUATION/ 2

O DISPERSED MARKET OF JUJUY PROVINCE.

– PRIVATE CONCESIONARIE STARTING IN DEC/96.– INVESTEMENT GROUP WITH CGE AS OPERATOR.– JOIN OFFER WITH CONCENTRATED MARKET ALTH

CLEARLY IDENTIFIED.

– CROSS DEFAULT STATEMENT– 6500 POTENTIAL PRIVATE USERS.– 300 PUBLIC SERVICES.– THEY IMPROVED SIGNIFICANTLY THE SERVICE QU– 14 SOLAR VILLAGES (2 INITIALLY)– 48 SCHOLLS REPOWERED(FROM 50/100 TO 300 W– AUTOMATION OF 5 EXISTING MICRO HYDRO.– NOW BUYING 600 SHS FOR PRIVATE USERS.
PRESENT SITUATION/ 3 PRESENT SITUATION/ 3

) RIO NEGRO MARKET

– 8000 PRIVATE POTENTIAL USERS.– PRIVATE CONCESIONARIE OF GRID MARKETS 

OPTION TO PROPOSE A CONTRACT AND TARISTRUCTURE TO ATTEND THE DISPERSED RURMARKET.

– THE STATE GOVERNEMENT REJECT THE PRIV

COMPANY PROPOSAL. THEY DECIDED TO CALA NEW CONCESIONAIRE.

) LA RIOJA MARKET

– IS UNDER NATIONAL AND INTERNATIONAL TE

FOR THE ELECTRICITY AND WATER RURAL MA
GOOD NEWS FOR WIND AND SOLAR E

GOOD NEWS FOR WIND AND SOLAR E

) LAW FOR WIND AND SOLAR ENERGY

– VAT FINANCING FOR PEOPLE USING WIND OR SOL

SYSTEMS FOR ELECTRICITY PRODUCTION FOR PUSERVICES PURPOUSES.

– SUBSIDIZATION OF U$S 10/MWh.– TAXES STABILITY.

) PROVINCIAL(STATE) LAW FOR WIND ENERGY.

– SUBSIDIZATION OF U$S 5/MWh.

) A QUICK EXAMPLE:

A WIND GENERATOR WITH A TODAY MARKET PRICE O25/MWh CAN RECEIVE ADITIONAL PAYMENTOF AROUN15/MWh BECAUSE OF THESE STIMULUS.
CREDITS CREDITS

) DOE-NREL-NRECA) ASEA-AWEA) WINROCK - E Co) UNDP) EC - THERMIE B - ICAEN - MADRID UNI - IS) FRANCE COOPERATION:WORLD

BUSINESS/TRANSENERGIE.

) GEF) WORLD BANK
FOR INFORMATION

INTERNET

http://www.mecon.ar/energia/energi

afabri@mecon.ar.
1

6XQ/LJKW 3RZHU 0DURF -

PV Service Model for Rural Morocco

What does it take for Scale-up and Success?

Presented by Mr. Mark F. Opel and Dr. Abdelhanine Benallou

Village Power ‘98

Scaling Up Electricity Access For Sustainable R ural Development

October 6-8, 1998

Washington, DC

6XQ/LJKW 3RZHU ,QWHUQDWLRQDO

+ROGLQJV/#,QF1

Mission Statement

To be a leading global supplier of solar

electric services to unelectrified

populations
2

SunLight Power’s Business

b Developing Countries

b Off-grid, Unelectrified Customers

b Photovoltaics - Small Systems - 25-75 Watts

b Own and Operate

b Full Service Provider - Installation, Maintenance,

Upgrades, Appliances, Community Outreach

SunLight Power Business Strategy

b Payment Options - Fee-for-Service, Credit, Cash

b Local Partnerships

b HQ/Operating Company/SunLight Service CenterTM

Team Relationships

b Controlled, Profitable Growth

b Private Capital
3

SunLight Power Maroc

b First Operating Company of SunLight Power

b Transferability of the Business Model

b Profitability at 2,500 Customers per SunLight

Service CenterTM

b Ability to Attain 5,000 Customers in first 12 Months

b Test SunLight Power Policies and Procedures

Planned for Global Network of Operating

Companies

SunLight Power Maroc

Why Morocco?

Environment

b Political and Economic Stability

b Political and Utility Support

b Market Distortion Limited

b Important Market Potential
4

Why Morocco?

Need

b Rural Population: 13 Million+

b Unelectrified Villages: 40,000 (70% of Rural

Population)

b Current Electrification Rate (Grid and Other): 10-

15%

b Large Dispersion of Households

b Estimated Potential Market:

16,000 Villages - 1,600,000 Customers

Market Characteristics

b Households, Mosques, Schools and Rural Health

Clinics

b Mostly Agricultural Incomes

b Large Demand for Lighting, TV, Satellite Dishes

b Important Traditional Energy Budgets

b Ability and Willingness to Pay
5

SunLight Power Maroc

Overview

b Incorporated in March 1998

b Capitalized with over US$1 Million from SPH

b HQ in Rabat

b Technician Teams

b Operations in 2 SunLight Service CentersTM

b Contractual Relationships with Local Intermediaries

for Marketing and Revenue Collection

b Over 300 Customers - 2/3 Fee-for-Service, 1/3

Credit/Cash

b 2,500 Customers at Each SSC in 12-Month Period
6

SunLight Service CenterTM and HQ

Typical Houses in Sefrou and Taza
7

SPM Customers

Technicians Installing SunLight

Power SystemsTM
8

SunLight Power Maroc

Aggressive Scale-up is Critical

b Prove Fee-for-Service Model

b Prove Financial Viability

b Gain Additional Necessary Capital

b Prove Ability to Local Utility and Government

b Stay Ahead of Local Competition

SunLight Power Maroc

Scale-Up Issues and Difficulties

Capital

b Capital Intensive Business Model

b Success Requires Expanding Capital Base
9

SunLight Power Maroc

Scale-Up Issues and Difficulties

Operational

b Logistics

b Marketing

b Training

b Quality Control

b Education

b Contractual Relationships

b Revenue Collection

b Geographical Issues

b Local Income Patterns and Cultural Issues

SunLight Power Maroc

Scale-Up Issues and Difficulties

Political

b Local Authority Structure

b Local Competition

b Relations with National Utility and Government
10










October 7, 1998 Community Power Corporation

Challenges for Viable RESC

Art Lilley, VP

Community Power Corporation

Village Power ‘98

October 6-8, 1998

Washington, DC
October 7, 1998 Community Power Corporation

Outline

• Definition• Challenges

– Customers– Competition– Funding– Setup– Operation– Uncontrollables

• Conclusions
October 7, 1998 Community Power Corporation

Definition: Energy Service Comp

An entity delivering application-based energyproducts and/or services, at market prices, ovto customers isolated from a formal energy sunetwork.
October 7, 1998 Community Power Corporation

Further Clarification

• Entity:

– sole proprietor, corporation, govt. agency, cooperative, NGO, e– both for-profit and not-for-profit

• Application-based: focus on application of energy not on kW

• Energy-based products or services: Liquid fuels, solid fuels,

maintenance/repair/charging services, consumable materials candles, wicks, globes, mantles), etc.

• Market price: Value of the energy service weighed against th

willingness and ability to pay; not a regulated price or unifor

• Over time: long-term relationship not a one-time product sal

• Customers isolated from formal energy supply network: Typ

homeowners and small enterprises without near term access 
October 7, 1998 Community Power Corporation

Examples Meeting the Defin

Conventional ESCOs• Retail sellers of conventional fuels: kerosene, diesel fuel, fir

dry cell batteries, candles, bottled gas

• Entrepreneurs selling energy services from an engine genera

– battery charging– light fixtures and power points for near-by neighbors

• Community-based AC power systems: gen-set, hydroEmerging ESCOs (RESCOs)• PV battery charging or solar home system leasing companies• Community-based AC power system: hybrid, wind, biomass
October 7, 1998 Community Power Corporation

Finding/Attracting Consum

• Are they serviceable?

– site accessibility– resource

• Enough of them?• Density?• Willing and able to pay?• Willing and able to purchase?
October 7, 1998 Community Power Corporation

Case Study to Determine Whether Ru

Consumers Prefer SHS Leasing or Owne

• Payment Options Offered: Assumptions:

1. Cash: 100% down2. Credit: 25% down, pay balance up to 7 years3. Lease: 2 month installation fee, pay to perpetuity

10% annual price increase

• Relative discount rate/Present value of $1 in y

1. Cash: (0%-$1.00)2. Credit: 1 yr. (6%-$0.56), 4 yr. (13%-$0.29), 7 yr3. Lease: perpetuity (25%-$0.11) Preferred Option
October 7, 1998 Community Power Corporation

Reasons Given By Consumers

Why SHS Leasing is Preferred Over Own

• Familiar with incremental purchase of energy• Equipment down payment is a large portion of sav• Leasing:

– relieves perceived maintenance burden

– puts seller on hook for performance– permits “try and see if it is as advertised”

• Don’t want to own equipment in case...

– equipment fails, is stolen, is damaged, etc.– something better/cheaper may come along– grid may come soon
October 7, 1998 Community Power Corporation

RESCO Has Many Advantag

Compared to Dealer Model*

Characteristic Leasing

(RESCO)

Direct Sale

(Dealer)

MarketPenetration

>70% <30%

Term ofRelationship

Long Short

DifferentiatingFactor

Service Price

MaintenancePerformed by

Technician Consumer

ConsumerFlexibility

Maximum Minimum

*From consumer’s perspective
October 7, 1998 Community Power Corporation

Competition

• Legality?• Grid?

– distance– plans– connection costs

• Nearby subsidized projects?• Nearby ESCOs?
October 7, 1998 Community Power Corporation

Conventional ESCOs Are

The RESCOs Major Competit

ESCOs

Conventional 

– ubiquitous– from withi– but room f

Emerging RES

– very few– from outsi– but why sw
October 7, 1998 Community Power Corporation

Conventional ESCOs Have Signif

Competitive Advantages

• Standard offerings, some highly subsidized• Purchase transaction is...

– very simple– quick

• Often there is a semblance of price competi• Buyer/seller relationship exists• Has become ingrained• Why change?
October 7, 1998 Community Power Corporation

CPC’s RESCO Strategy to Reduc

Consumer’s Resistance to Chang

• Make advantage apparent to user• Make service fit with user’s current meth• Use known words/concepts to explain ide• Make it easy to get in/get out• Make sure user understands the worst cas• Price for high perceived value
October 7, 1998 Community Power Corporation

Getting Funded

• Credible Business Plan?• Credible Investor?• Mutually Acceptable Terms?

– form of investment– cost of money– payback

• What If?
October 7, 1998 Community Power Corporation

Startup

• Staffing?• Procurement?• Logistics?• Installation?• User training?
October 7, 1998 Community Power Corporation

Operation

• System performance?

– equipment– staff– processes and procedures

• Financial Performance?

– revenue collection/defaults– unplanned maintenance/repair– theft/diddling

• Customer Satisfaction?
October 7, 1998 Community Power Corporation

• Currency• Inflation• Stability• Weather• Disasters

Uncontrollables
October 7, 1998 Community Power Corporation

Current Status

• Staying involved

– customer satisfaction remains high– maintaining strategic relationships

• Adapting

– pursuing high value productive uses of renewables– evaluating opportunities for small modular biopower

• Monitoring situation• Preparing for recovery
October 7, 1998 Community Power Corporation

Conclusions

RESCOs...

...are relatively new, but exist in many countries 

large rural populations

...are a logical step in the evolution of renewable 

delivery mechanisms

...are more customer-friendly than direct sales mo...have great untapped potential for deploying ren

energy-based products and services to rural peo

...can meet the challenge
1
2
3
4
5
6
Solar Lighting for t

Solar Lighting for t

Church of Africa Church of Africa

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 S

A Solar Electrification Project starte

A Solar Electrification Project starte

Church of Uganda and the Am

Church of Uganda and the Am

Episcopal Church Episcopal Church

And God said, “Let there be Light” and there 

And God said, “Let there be Light” and there 

And God saw the light, and it was good. And God saw the light, and it was good.

-- Genesis 

-- Genesis 
Solar Lighting for the Church of A

Solar Lighting for the Church of A

The Birth of a Program

Bishop Alden Hathaway of the Episcopal Diocese of P

 Hathaway of the Episcopal Diocese of 

visits the Mustard Seed Orphanage, visits the Mustard Seed Orphanage, Hoima Uganda, 

Uganda, 

Bishop, our orphans need light! Bishop, our orphans need light!

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-02

The Mustard Seed The Mustard SeedOrphanage OrphanageDirector, Director, Evace

Bitairaho Bitairaho explains explainsto Bishop to BishopHathaway how the Hathaway how theorphans need orphans needelectric light and electric light andpure water. pure water.
Solar Lighting for the Church of A

Solar Lighting for the Church of A

The Birth of a Program

Bishop Zebedee Masereka Zebedee Masereka of South of South Rwenzori Rwenzori app

 app

the American Episcopal Church for help - Februa

the American Episcopal Church for help - Februa

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-

The Mou

Mou

Rang

Rang

seen 

seen 

BishMas

Mas

hom

hom

city 

city 
Solar Lighting for the Church of A

Solar Lighting for the Church of A

The Birth of a Program

Bishop Hathaway pledges to support a program to 

Bishop Hathaway pledges to support a program to 

360 churches in 6 Ugandan Dioceses - March, 

360 churches in 6 Ugandan Dioceses - March, 

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-04

United Solar Systems Corp United Solar Systems Corpof Detroit, MI is selected to of Detroit, MI is selected tosupply Solar Systems. supply Solar Systems.A Fund is Established in A Fund is Established inPittsburgh to raise money. Pittsburgh to raise money.The Diocese of Pittsburgh The Diocese of Pittsburghhas become a center for the has become a center for themissionary activity of the missionary activity of theEpiscopal Church. Episcopal Church.
Solar Lighting for the Church of A

Solar Lighting for the Church of A

The Birth of a Program

Archbishop Archbishop Nkyoyoo Nkyoyoo appeals to expand project t

appeals to expand project t

dioceses - July, 1997 dioceses - July, 1997

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-0

Nami

Nami

Cathe

Cathe

Kamp

Kamp

seat o

seat o

Angli

Angli

Churc

Churc

Ugan
Solar Lighting for the Church of A

Solar Lighting for the Church of A

The Program

August - September, 1997 - 1998 more than 3

August - September, 1997 - 1998 more than 3

lighting systems are installed in 8 Ugandan 

lighting systems are installed in 8 Ugandan 

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-06

The Ugandan D

The Ugandan D

deposit $100 fo

deposit $100 f

system to be re

system to be re

The American 

The American 

matches with a 

matches with a 

contribution; contribution;The remaining 

The remaining 

financed over 2 

financed over 

at $21 per mon

at $21 per mon
Solar Lighting for the Church of A

Solar Lighting for the Church of A

Lighting without Electricity

The Predominate Source for Light in Ugan

The Predominate Source for Light in Uga

in most Developing Countries) is Keros

in most Developing Countries) is Keros

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-07
Solar Lighting for the Church of A

Solar Lighting for the Church of A

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-08

The Episcopal Church USA and the Churc

Uganda Commitment

Helping the Priests/Helping the Commun

Helping the Priests/Helping the Commu

John Ssemanda Ssemanda, of

Solar Energy Solar EnergyUganda, Uganda, Ltd. hands . hands

one of the first one of the firstUni-Solar Solar -Solar Solar

Lighting Kits to be Lighting Kits to beinstalled to a Priest installed to a Priestand his wife in and his wife inAugust, 1997. August, 1997.
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Bishop Receives Electric Light

Officials from Solar Energy Uganda Officials from Solar Energy Uganda Ltd. Expl

. Expl

Operate a New Lighting System to Bishop Operate a New Lighting System to Bishop Si

 S

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-
Solar Lighting for the Church of A

Solar Lighting for the Church of A

An Anglican Program becomes Ecume

 Anglican Bishop William Anglican Bishop William Rukirande Rukirande, Dioc

, Dioc

Kibale; Bishop Hathaway; Bishop ; Bishop Hathaway; Bishop Deo Gratsi Deo Gratsi, 

, 

Diocese of Diocese of Hoima, at Mustard Seed Orpha

, at Mustard Seed Orpha

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-1

Bishop De

De

Diocesan h

Diocesan h

one of sev

one of sev

installation

installation

with assist

with assist

Bishop Wu

Catholic D

Catholic D

Pittsburgh 

Pittsburgh 

the progra

the progra
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Konge Catholic Chur

Bishop Hathaway, son Bishop Hathaway, son Alden II, and grandson, II, and grandson, Alden 

to Uganda July 20 - 30, 1998 to Inspect Solar Insta

to Uganda July 20 - 30, 1998 to Inspect Solar Insta

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-

Bishop 

Bishop 

particip

particip

US Am

US Am

Nancy a celeb

a celeb

the sola

the sola

at KongParrish Parrish
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Central Buga

American Churches adopt Ugandan Chu

American Churches adopt Ugandan Chu

The Reverend Male (center), Diocese of Central The Reverend Male (center), Diocese of Central B

B

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Central Bug

Bishop Hathaway, the Reverend Cha

Bishop Hathaway, the Reverend Cha

and Rebecca Male and Rebecca Male

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-

Charles and Charles andRebecca teach Rebecca teachtheir congregants congregantshow to grow how to growcrops. They crops. Theypray for enough pray for enoughfunds to build a funds to build aclassroom. classroom.
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Diocese of Kinkiizi, K

Bishop Hathaway and delegation members at 

Bishop Hathaway and delegation members at 

of Ben Kuriigamba Kuriigamba, African Evangelistic Coo

, African Evangelistic Coo

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-

This remote area in This remote area insouthwestern Uganda southwestern Ugandanear the Congolese near the Congoleseborder is without border is withoutelectricity. Father electricity. FatherRweijungu Rweijungu (right of (right of

Bishop Rukirande Rukirande

)

ministers to a Pigmy ministers to a PigmyTribe 5 km away. Tribe 5 km away.
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Diocese of Bunyaro

Hoima

The Mustard Seed Orphanage The Mustard Seed Orphanage

24 lights provide a beacon for the residents of 24 lights provide a beacon for the residents of H

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-1
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Diocese of Bunyaro

Hoima

Two American boys; Joseph, son of Two American boys; Joseph, son of Uni-Solar supp

-Solar supp

Ssemanda Ssemanda and Tripp (Alden III), grandson of Bishop 

 III), grandson of Bishop 

Visiting with orphans at Mustard Seed - “Does the light come f

Visiting with orphans at Mustard Seed - “Does the light come f

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Diocese of Bunyaro

Hoima

Solar Lighting Kits Increase the Standard o

Solar Lighting Kits Increase the Standard o

Reverend Solomon Reverend Solomon Tunura’s Tunura’s Family, Family, Hoima, U

, U

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-17

The Tunura’s Tunura’s claim

that the electric that the electriclight gives chickens light gives chickensan extra feeding per an extra feeding perday and increases day and increasestheir rate of growth their rate of growthand yield. and yield.
Solar Lighting for the Church of A

Solar Lighting for the Church of A

Appealing to the Government for Suppo

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-18

Finance Minister, and Former Energy Minist

Finance Minister, and Former Energy Minis

Gerald Ssendaula Ssendaula is flanked by his staff and Bishop 

is flanked by his staff and Bishop 
Solar Lighting for the Church of 

Solar Lighting for the Church of 

Paying the Value Added Tax

Tripp looks on as his Papa pays the V.A.T. to free 

looks on as his Papa pays the V.A.T. to free 

Systems from Ugandan Customs for finishing th

Systems from Ugandan Customs for finishing th

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-19
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Mukono

John Ssemanda Ssemanda, Bishop Hathaway, son , Bishop Hathaway, son Alden II, Bisho

II, Bisho

Inspect the 360 W PV System at Inspect the 360 W PV System at Mukono Christian U

 Christian U

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-
Solar Lighting for the Church of A

Solar Lighting for the Church of A

A Delegation to Uganda - Kampala

The two Bishops with the Good The two Bishops with the Good Semaritan Semaritan Sisters a

 Sisters a

Kakooza Kakooza of Nalukolongo Nalukolongo, A Catholic Home for the 

, A Catholic Home for the 

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA-2
Solar Lighting for the Church of 

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLC

“Go into all the wand proclaim the news to the wholecreation.” - Mark 16

The Great Comm
Solar Lighting for the Church of 

Solar Lighting for the Church of 

Village Power Conference - Alden M. Hathaway, Jr. 10/08/98 SLCA

Please direct your donations or questionECMC/Solar Lighting for the Church oc/o The South American Missionary Soc1013 Merchant StreetAmbridge, PA 15003Ph:703-934-3144;e-mail: ahathaway@icfkaiser.com
Village Power ’98

Thursday, October 8, 1998

09:00-11:00 Financing Scale-up of Rural Electricity Access

and Expanding Renewable Energy Markets

- Chair, Paul Hassing, DGIS, The Netherlands

•Effective Intermediation: Experience in Asia RE Projects - Jim

Finucane, Indonesia SHS Support Group

•Structuring and Justifying Financial Incentives - Subodh

Mathur, Consultant

•Inter-American Development Bank Experience in Renewable

Energy Financing for Rural Development - Jaime Millan - InterAmerican Development Bank

•Financing for Private Sector Renewable Energy Projects -

International Finance Corporation (IFC)
Financial and Capacity Buildi

Intermediation in Asia RE Proj

Jim Finucane

SHS Project Support Group, Indonesia

October 8, 1998
Finance and capacity building 

scale up of rural RE

• aim - expand access of rural households to 

energy on significant basis

• focus - market based financing to consumer

firms by banks or other financial institutionfor small energy investments, with specialreference to pv systems

• result - successful pv system retail level sal

services in rural areas
Customer characteristics

• households, beyond the grid, dispersed• high ability and willingness to pay

– salary income or cash income from farming, fis

livestock, small businesses

– currently spend cash regularly to purchase ener

lighting and tv / radio - typically kerosene, used batteries, dry cell batteries

• limited access to financing for consumer du
Local PV business characteristi

• small/medium size, entrepreneur driven, fam

businesses, with many exceptions

• partially in the informal sector• main financing is savings, family, friends• most receive some supplier credit• few have credits from FIs for the pv busine• a few have finance and training links with

suppliers and international NGOs

• some have government procurement experi
Main lines of financial interventi

• working capital and term credits• grants for initial market development• framework for mobilization of additional fi

resources (e.g., fresh equity in existing and companies, guarantees, increased supplier c
Design considerations

• affordability: market size and price points for 

and credit sales and fee-for-service schemes

• profitability, sustainable business models• capabilities and commitment of pv businesses

technology suppliers, others

• creditworthiness of customers and pv business• availability of finance, supplier support• level of competition and consumer choice• consumer protection - product standards, after 

service, warranties
Design tensions and trade-offs

• expand the market vs deepen the market• strong technical specifications vs consumer

choice

• the devil is in the details and banking is

documentation vs keep it simple and maintaflexibility
Advance capacity building

• business planning assistance• financial management and accounting• best practices information and training• product improvement design assistance• product testing and certification• links with financial institutions, investors,

guarantee sources
Competitive financing and refinan

• mismatch loan and subloan maturities• competitive interest rates• simple procedures (their’s if possible)• quick disbursement processing• grants transparently for initial market devel

– cost share preparation expenses and initial tech

improvement

– for unit sales to increase affordability– cost share trials of market development ideas
Parallel capacity building

• business planning• financial management and accounting• technology improvement, training• product testing, certification, quality assura• information to market place• links with financial institutions, investors,

guarantee sources

• market monitoring
Compliance monitoring

• end user audits (participants required to ma

customer sales and warranty records and haaudited accounts)

• performance audits• customer satisfaction surveys• focus groups
Financing-related effects on FI

• lower pipeline development and transaction 

of FIs

• lower risk perceptions of FIs and investors

(market surveys, comparative informaton)

• lower technology related payment and mark

risks (training, robust specifications, after-srequirements)

• lower FI monitoring costs (field audits, cus

satisfaction surveys)
Key approvals structur

SHS ESD R

Approvecompany

PB, WB PCI, WB PMO

Auditcom

pliance

PSG PCI PM

Approvegrant pay

PB (after

1st audit)

AU (after

1st audit)

PMO

au
Key price, loan and grant te

SHS ESD 

Sale or service tocustomers

market based

 pricing

market based

pricing

ma

GEF unit grant For 30+Wp $60/100

– on/off Java; for

50+Wp $75/125 -

on/off Java

For 30+Wp, $100 Fo

 $1

Loan to companyfrom PB / PCI

Rupiah, market

rates, up to 5 yrs

Rupees, market

rates, up to 10 

yrs

WB refinanceloan to PB / PCI

80% refinance, 20

yrs incl 5 yrs grace,

central bank SBI

three month rate

60% refinance, 15

yrs, incl 5 yrs

grace, average

weighted deposit

rate
INDONESIA

SOLAR HOME SYSTEMS PROJECT

 Legal Agreements

WB/GEF

GOI/MOF

BI

Participating

State Banks

SHS Dealers

Hire Purchase

Contracts

Loan

Agreement

GEF Grant 

Agreement

On- lending and 

Grant Agreement 

Subsidiary Loan

and Grant Agreement

Credit and Grant 

Agreements

Credit and Grant

Agreements

Rural Customers

Participating

Private Banks

SHS Dealers

Hire Purchase

Contracts

Rural Customers

On- lending and 

Grant Agreement 
CHINA

RENEWABLE ENERGY DEVELOPMENT PROJECT

PV Component Legal Agreements

WB/GEF

GOC/MOF

PV Companies

Sales

Contracts

GEF Grant 

Agreement

Subsidiary Grant

Agreements

Rural Customers

SETC/PMO

Grant Management

Agreement

Escrow account bank

agreement with PMO and companies
INDONESIA

SOLAR HOME SYSTEMS PROJECT

Disbursement of Grant and Loan Funds

WB/GEF

MOF

BI

SA

Loan

SA

Grant

State Banks

Private Banks

A/W for Grant A/W for Loan

Disb. to SA Grant

Disb. to SA Loan

Grant Payment Instructions

Loan Payment

Instructions

Request for 

Refinancing

- Record of

 Disbursements

Request for Grant

- List of Customers

 with Details

 

Loan Funds 

Transfer

Grant

Funds

Transfer

SHS Dealers

Rural Customers

Request for

Grant Disbursement

- List of Customers

 with Details

Request for

Loan Disbursement

Hire Purchase Contract 

Acceptance of Installation
CHINA

RENEWABLE ENERGY DEVELOPMENT PROJECT

Disbursement of Grant Funds for PV Component

WB/GEF

PMO

Application for

Withdrawal of

Grant

Disbursement to

Grant Special Account

Grant Payment

Instructions

Payments of Grants

 to PV Company

 and Escrow Account

Solar PV

Companies

Rural Customers

Requests for

Grant Payments

(list of customers 

with details)

Sales Contract and Receipt

Acceptance of Installation (AOI)

MOF

SA Grant

Escrow account bank
SRI LANKA

ENERGY SERVICES DELIVERY PROJECT

Legal Agreements for SHS Component

WB/GEF

 Credit Agreement GEF Grant Agreement

GOSL/MOFP

Project 

Administration 

Agreement

Participation Agreements AU

PCIs

Loan Agreement

Developers / Dealers

 Sales contracts

Rural Customers

Note: As a special case PCIs may also be permitted to lend directly to rural customers

FILE NAME: LEGALAGR
SRI LANKA

ENERGY SERVICES DELIVERY PROJECT

Disbursement of Grant and Loan Funds for SHS Component

WB/GEF Disb. to SA Grant

Disb. to SA Loan 

Central Bank of Sri 

Lanka

SA for 

Loan

SA for 

Grant

GOSL AU

loan funds transfer

grant 

funds 

transfer

PCIs

loan grant

Developers/Dealers

 installments

grant 

(variable 

amount)

Rural Customers
Note: As a special case PCIs may also be permitted to lend directly to rural customers

File Name: DISBURSE
7RZDUGV 36PDUWHU¥

6XEVLGLHV=

Essential for Scaling Up Rural and Renewable Ener

Subodh Mathur

mathurs@cais.com

Village Power ‘98 Conference

October 6-8, 1998

Washington, DC.
Overview

XIll-designed subsidies are:

• Counter-productive• Waste of scarce resources• A key bottleneck to rapid scale-up o

rural and renewable energy

x Until we can manage without

subsidies, we need “smarter” subs
 “Smarter” Subsidies: Key Issue

XMaintain cost reduction pressuresXFinance them betterXSelect households judiciouslyXRethink the treatment of externalities
 Maintain cost reduction pressur

XWhere possible, don’t stifle competiti

providing subsidies to a single entity o

• Offer similar subsidy to multiple provide• Fee-for-service approach (ESCOs) does 

inherently require a legal monopoly; offesubsidy to multiple ESCOs

• Consider making it technology neutral
 Cost reduction ... continued

XSubsidize results, not investment costs

• Interest rate subsidies are potentially haz

→ reduce incentives to use scarce capital frug→ financing system may be unsustainable wh

subsidies are removed.

→ “last resort”, not “preferred way”

• Capital cost subsidies provide incentives 

install systems, but none to utilize them

→ India wind capacity tax break→ Indonesia system expansion subsidy
 Cost reduction ... continued

XCatalytic subsidies for pre-investment 

may be a bargain

• Feasibility/pre-feasibility studies• Information collection and dissemination• Training/capacity building/hand-holding

x Develop new instruments for preinvestment risks, instead of subsidies
 Cost reduction ... continued

XTry bidding for subsidies

• Particularly important for “concessionair

approach

• If qualified bidders do not exist, make ef

create them
 Finance them better

x Fund fully all subsidies ex ante

• Financial chaos in India power sector be

of unfunded subsidies to farmers

→ No incentive to connect rural households.

• In Indonesia, unfunded subsidies to off-J

and rural customers threaten grid RE ext

• Renewable energy projects vulnerable to

excessively optimistic assumptions aboucost reductions
 Finance them better ... continu

x Consider explicit instead of implicit c

subsidies

• Implicit cross-subsidies work “within” th

no clear, separate accounts are maintaine

• Explicit cross-subsidy is a levy or tax on 

customers/technologies, used to subsidizcustomers or technologies

→ Example of 1% levy for rural electrificatio

Zimbabwe; NFFO in U.K.; recent Internet sscheme in U.S.
Which households to subsidize

x Tempting to subsidize modern energy 

rural households or poorest household

• Subsidizing all rural households in a reg

often not financially feasible

• Priority of poorest households may be ba

commodities such as food, clean water

x Focus on households for whom moder

energy is a high priority
Spending behavior shows priorit

x Basic goal is to improve quality of life 

rural households

• Subsidized prices are a practical alternat

efforts to increase income/overall expend

x Determine “priority” by looking at:

• how much more would household spend 

modern energy if their incomes increased

→ at unsubsidized prices
Simple priority test

For each particular type of rural house

suppose the total annual expenditure 

commodities) goes up by $100

 How much of this $100 will go to mo

energy?
Simple priority test ... continue

x Compare answers across types of

households to determine:

Groups of households for whom modern 

is a high priority

x For a particular household, compare

answers across commodities to determ

Priority of modern energy

compared to other things
Simple priority test ... continue

x Will this work for newer, cleaner, mor

convenient energy which households hnot yet ever used?

• Many techniques available in economist

toolkits for this purpose

→ used to estimate people’s interest/priority i

environmental protection

• Some adaptation and testing of techniqu

be needed.
Rethink treatment of externaliti

x Externality: Costs of global environm

damage not taken into account by locadecision-makers in developing countr

x GEF, bilaterals willing to pay to avoid

greenhouse gas emissions in developincountries

x How should these payments be treated 

economic cost-benefit analysis?
Rethink externalities ... Current pra

x In cost comparisons, we do not use “G

payments, i.e.,

Economic cost of renewables

 vs.

 Economic cost of conventiona
Current practice ... continued

x In cost-benefit comparisons, we includ

“GEF” payments as a benefit, represenglobal willinness-to-pay

Economic cost of renewables

 vs.

Local benefits of renewable + “GEF” pay
Externalities ... suggested practi

x In cost comparisons, use “GEF” paym

as measure of global economic damag

Economic cost of renewables

 vs.

 Economic cost of conventional 

Global environmental damage co
Externalities ... suggested practi

x In cost-benefit comparisons, do not in

“GEF” payments as a benefit

Economic cost of renewables

 vs.

Local benefits of renewable + “GEF” pay
Benefits of suggested practice

x Does not encourage projects that have

limited local interest and priority

x Makes clear that “GEF” payments are 

the same as “unwarranted” subsidies

x Makes it easier to show that renewabl

cost competitive, taking account ofenvironmental costs

x Conforms to economic theory
Village Power 98

Inter-American Development Bank

Experience in Renewable Energy

Financing for Rural Development

By Jaime Millan

Principal Energy Economist

Sustainable Development Department

IDB

October 6, 1998
Contents

• Markets for rural energy in Latin Ame

and the Caribbean

• The new IDB energy strategy• Sustainable markets for sustainable en• Some examples• Conclusions
Markets for Rural Energy in Lat

America and the Caribbean

• Electricity coverage is high: close to 84% of popul

the most urbanized (75%) region of the developing but

– In some countries rural coverage is poor, less than 20%– In large countries with high coverage absolute numbers m

huge. Only in brazil there are 20 million people not connethe grid

• In general rural electrification in the past was based 

huge subsidies and resulted in inefficient resourceallocation, but

– Power sector reform opens the door for new participants– And a whole new rural energy market
Most Unserved Population is Rura

Correlation Urbanization Electrificat

Cubrimiento Servicio Eléctrico

Region: 84%

395.7

71.2

Población con Servicio de Electricidad Población sin Servicio Eléctrico

Fuente IDB, 1997

0

20406080

100

Cubrim iento 

(%)

Grupo 1: <

50% 

Grupo 

30%-5

P oblacio

Población Rural y Cubr

Electricidad
Unserved Population has been declining in Abs

in the Last 20 Years.

Población Ru

con Servicio

(Millones)

Region 1970 199

Africa N. y Medio Oriente 11 38 America Latina 18 50 Africa 9 27 Asia del Sur 69 209 China 270 635 Asia del Este y Pacifico 233 482 

Fuente: Energy Strategies for Rural and Poor People in L

> 90%

Argentina, Barbados, Brazil, Chile, Costa Rica, Mexico, Suriname, Trinidad & Tobago, Uruguay, Venezuela

70% - 90%

Colombia, Ecuador, El Salvador, Grenada, Paraguay

50% - 70%

Bolivia, Dominican Republic, Jamaica, Nicaragua, Panama, Peru

< 50% Guatemala, Guyana, Haiti, Honduras

Cubrimiento del Servicio de Electricidad (%)

Source: IDB, 1997
IDB Energy Strategy

• A set of complementary activities that, as a 

of confronting comparative advantages and

limitations with the needs of the market, hel

create a unique position for the bank

– Comparative advantages in:

• SME and micro-enterprise loans and non-lending s• Rural poverty strategy, and gender programs• Using donors funds to catalyze markets

– Limitations in:

• Putting energy experts to make small, time consuming 

– Enable markets for rural energy using our comp

advantage in business development by adjusting to necessities
IDB....

• Enabling markets for rural energy

– Creating the institutional and legal framework t

the playing field

– Filling the missing links that are required to cr

demand for existing loans and services

• Capacity building• Putting together customers and lenders• Innovative lending instruments• Non lending services

– Experiment with many delivery models
SMSE Process Transforms Goals 

Markets for Sustainable Energ

Donors:Climate Change mitigation;Environmental protection;Technology transfer

Countries: economic

and social development;environmentalprotection

IDB: loan activity

Markets for End-use Eand Clean Energy Pro
SMSE Process for Catalyzing a Mark

Energy Efficiency or Renewable Ene

Develop 

SMSE Action 

Plan

Market and 

Institutional 

Diagnosis

Donor 

Expert Input

Donor 

Expert 

Assistance

Financial Services 

Enhanced

Demand for 

Projects Fostered

Service Provider 

Capacity Enhanced

Cou

L

Government Policy 

Enhancement

 Action Plan 

Implementation Phase: 

One to Three Years

 Action Plan 

Development Phase:

Up to One Year

M
Evolution of Funds Required Over 

Donor Funds

Commercialand IDB Loan

IDB Project Development Fun

$, M

2

4

2 4 Years

6

1210

8
Status of SMSE Activity:

Results Achieved and Expected

• Brazil: MIC small project loan concluded; SMSE develope

renewable energy services component of $400 M SME loan fnortheast for 1999; action plan complete and accepted by couprobable funding for implementation by MIF and JSF and oth

• Peru: action plan complete; probable funding for implemen

MIF and JSF and other donors

• Brazil/parana state: activity expected to be a compone

$200 M urban development loan in 1999/2000

• Ecuador: activity expected to be a component of $200 M 

development loan in 1999; probable funding from JSF

• Argentina: increased utilization of existing loan funds (sc

tech, SME) and possible component of new S&T fund

• El salvador: leveraging of private sector activity through 

energy efficiency loan fund
Example for Brazil of Type of Assistance Pr

in Action Plan Implementation Phase

• Demand side: market assessment• Supply side

– Service providers: business model developmen

assistance

– Financing: linking existing credit to demand; in

finance schemes

• Institutional and regulatory: reorganization of gove

program to help infuse private sector initiative in pgovernment
Examples of Lending and Assistance Ve

for Rural Energy in Brazil

• Expansion of markets for small & me

energy enterprises through SME Loan

• Creation of microenterprises for rural

energy services in northeast Brazil

• Including components in new loans

– Agrarian reform loan– Prodetur
Other Approaches:

• A comprehensive strategy for rural energy and

telecommunications in Central America which, wh

open to any solution, is ready to replicate other’sexperiences in an experimental way

• Support other’s ideas, like E&CO, follow up and b

to scale up
Conclusions

• The bank is changing its approach seeking to

adjust means to needs

• In many respects our approach is similar to t

other multilaterals

– Driven by social concerns– Exploit a niche– Trust market mechanisms

• Our uniqueness may be found in the way we 

tried to use our comparative advantages
1
2
3
4
5
Village Power ’98

11:30-12:00 Closing Statements

- Chair, Alistair McKechnie,World Bank

•NREL – Roger Taylor

•World Bank - James Bond
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

6R/#ZKDW LV 9LOODJH 3RZHU"

Closing Remarks

by

Roger Taylor, NREL
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Transitions

• from not-for-profit, to sustainable for-profit• from a technology focus, to a needs-based foc• from a central station, to a distributed paradigm• from government control, to local empowerme• from technology demos to institutional experimsustainable businesses• from identifying a need to creating a market

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

9LOODJH 3RZHU LV DERXW=

Gender Issues

• ensuring women’s access to credit and trainin• involving women in the design, implementatioand maintenance of rural projects• focusing on the needs of rural households (co• recognizing the importance of gender issues iplanning and evaluation
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Finance

• making bankers believe (at multilateral and loca• encouraging financial transparency• minimizing subsidies• striving for economies of scale in project implem

Most important cost reductions are now in the tr

costs of implementation, not in technolog

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Economics

• seeking out productive uses• seeking and engaging complementary investm• driving toward “critical mass” projects (1000 cper technician, 5 technicians per micro enterpri

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Competition

• among technologies (renewable and conventiona• among implementation approaches (business exp• for investment resources (both program and indiv• among social priorities

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Cooperation

• throughout the development community• among the donors• among the practitioners• among the diversity of interests within a co• need to share problems, as well as solutio• need to build partnerships• need to build joint ventures• exploring options (technical, institutional,financing, development, implementation ...)

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Technology

• continued technical innovation• making renewables better than diesels• focusing on applications, not technology• focusing on reliability of supply, quality of serv• focusing on energy, not just electricity• building on the computer and telecom revolut

We are no longer technology-limited,

we are institutional-limited

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Balance

• between business creation and social obligatio• between donor interests (GHG) and country ne(development)• between options (no silver bullet)

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Creating new terms

• flemenstrations (failed demonstrations)• “manufactured electricity”• “inclusive development”• “smart subsidies”

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

Patience

• enormous dedication over extended perio• not getting depressed

9LOODJH 3RZHU LV DERXW=
Village Power ‘98

Scaling up Electricity Access for

Sustainable Rural Development

• Creating Opportunities

• Empowering People

• Running faster ... so we don’t loose t

9LOODJH 3RZHU LV DERXW=
Closing Remarks

Presented at Village Power 98

Scaling Up Electricity Access for Sustainable Rural Development

Washington, D.C., October 6-8, 1998

James Bond, Director

Energy, Mining, and Telecommunications, The World Bank

Village Power '98 - an enormous success

• Over 500 participants

• A wealth of brain power

• Advertising new technologies and ideas

• Involvement of the private sector (Shell Renewables and their ESCOM project)

A.

B. Three core themes:

• The technologies: What are the new possibilities? How is the cost-benefit ratio improving?

• The financing: How best can we finance rural energy access?

• The organizational structures: How best to put financing and technologies into practice?

C.

• The news on technologies has been good, but not good enough: the costs are still too high.

• The news on financing has also been heartening: the Bank's LILs, microfinance initiatives, Shell

Renewables' card-based fee for service system.

• But the challenge of scale-up will be met most effectively on the institutional level: a great deal of

encouragement here, from our 1998 Village Power Road Warrior to NRECA. Utilities do not look like

the answer - working from the poor's own organizational arrangements will likely succeed best.

D.

E. Three central challenges:

F.

1. To the industry: bring down the costs of the technologies.

2. To the financiers: defeat the institutional impediments to innovative financing.

3. To all of us: to realize that we are in a stiff competition for scarce resources, not just with

• Other strategies for RE (grid extension, distributed generation); and

• Other priorities for national energy policies (e.g. better urban electrification);

But also with

• Other potential receptacles of financing for economic and social development: from schools and

hospitals, to roads and water.

This is the bottom line we must confront: we must work together to make renewables a competitive option

for RE, and to make RE a competitive option for development and, even more importantly private sector

financing.
Village Power ’98

Appendix A

Poster Session

NREL Handouts

Project Briefs

Bibliography

Renewables for Sustainable Village Power by Larry Flowers

Lessons Learned from the NREL Village Power Program by

Roger Taylor

Village Power ’98 Attendees

Photographs
Alaska’s Renewable Energy Program

MWh(s) sold 363,783

% Diesel generation 98%

Gallons of diesel fuel 27,540,292

State subsidy about US$18 million

General: no roads or interties, bulk fuel storage

Purpose of renewables programs: cost-effectiveness

Developments programs:

• Small Hydro

• Wind:

 - Turbine performance (AOC 15-50 in Kotzebue)

 - High penetration wind-diesel system development

Wales High-Penetration Wind-Diesel System

• High-Penetration, Wind-Diesel System

• Begin first phase of installation in the Fall of 1998

• Wales is a remote Inupiat Eskimo village of about 160 people

• Primary funding by EPA Environmental Technology Initiative and

Alaska Science and Technology Foundation

• Estimated $600,000 to retrofit the existing diesel plant with two

AOC 50-kW wind turbines, distributed dump load, system

controller, and energy-storage subsystem

• Partners are National Renewable Energy Laboratory, Alaska

Department of Community and Regional Affairs, Kotzebue Electric

Association, and Alaska Village Electric Cooperatives.

Alaska

 Richard Emerman (Alaskan State Energy Office)

and Mari Shirazi (NREL)

KEA Wind Farm

• Wind-diesel system

• Three AOC 50-kW turbines installed, seven additional turbines

to be installed beginning in the fall of 1998

• Kotzebue is a predominately Inupiat Eskimo village of about

3000 people

• Initial funding by State of Alaska, additional funding by DOE

• Project goal to eventually include up to 2 MW of wind power

and to become a center of excellence for wind power in Alaska

• Kotzebue Electric Association (KEA).

Tazimina Hydroelectric Project

• The 800-kW Tazimina hydroelectric project, completed in 1998, serves the

Iliamna region in rural Alaska. There are no roads or transmission lines

connecting the region and its 600 residents with the outside world.

• Tazimina is a run-of-river project—there is no dam or impoundment.

• Water is diverted around Tazimina Falls—a small fraction of the available

flow is diverted in summer and most of the flow in winter. Because the

falls are a natural barrier to fish migration in summer and are frozen in

winter, the diversion does not affect fish populations.

• Project capacity exceeds peak demand. As a result, the utility’s diesel

generators can be completely idled most of the year.

• The project cost US$11.7 million to construct. State and federal grants

totaling US$8.4 million accounted for 72% of the cost, supplemented by US

$3.3 million of low interest debt. Initially, the cost of power from the hydro

project is about the same as the avoided cost of diesel power generation

• The utility’s average residential rate is about US$0.46/kWh.

Tazimina River in August of 1996

Rural Alaska population: 76,000, communities: 200, utilities: 100
Rural Concessions

• Salta and Jujuy are the first provinces to award concessions to

private utilities for the supply of energy services through standalone renewable systems.

• Working with the Secretaria de Energia, NREL has developed

models that estimate the cash flow and profitability of private

companies operating rural concessions for use throughout

Argentina.

• NREL is continuing to collaborate with Ente Regulador de los

Servicos Publicos in Salta.

Wind Mapping in La Rioja Province

• NREL and the Government of La Rioja Province are

collaborating on a program to assess the wind resource

in the province and to create wind-energy maps of

La Rioja.

• The province will conduct a wind measurement

program, using 10 60-m towers and 19 24-m towers.

• NREL will provide training and technical assistance to

the province, and will perform the final analysis and

wind mapping. La Rioja Province of Argentina and Surrounding AreasFuture Wind Resource Exploration Areas

Argentina

• Rural concessions in Salta and Jujuy

• Wind-diesel retrofits in Patagonia

• Wind mapping and water pumping in La Rioja

• Solar Home Systems in Missiones

• Rural schools in Santa Fe and Buenos Aires.

Wind-Diesel Retrofits in Patagonia

 There are dozens of diesel plants in the provinces of Patagonia

serving isolated communities. The fuel supply and maintenance

requirements for these diesels can be reduced by utilizing

Patagonia's abundant wind resource and integrating wind

turbines and new controls into the diesel plants. A project is

under development for the community of Tres Lagos in

Santa Cruz.

 Peter Lilienthal (NREL)

An isolated diesel plant in Tres Lagos, where a wind-diesel

retrofit is under development

A wind/PV hybrid in Jujuy

Argentina's Renewable Village Power

Activities are:

Unelectrified population = 2,388,351 people or

556,999 households
Australia’s Renewable Energy Program

Australia’s renewable energy program has a long and active

history and is gaining strength all the time. Renewable energy is

commonly used for powering remote ranches and communities

in the Australian Outback and is actively promoted and supported

by the major utilities and state and federal ministries of energy.

Australia’s renewable energy industry includes award-winning

manufacturers of most major renewable energy technologies

including wind turbines, solar panels and concentrators, power

conditioning equipment, batteries, fuel cells, and biomass. Major

universities around Australia conduct renewable energy research

in cooperation with industry through ACRE, the Australian

Cooperative Research Centre for Renewable Energy.

Wilpena Pound, South Australia

Commissioned in July of 1998 for the ETSA Corporation of

South Australia, the Wilpena Pound hybrid system incorporates

a 100-kW Solar Array, 100, 150, and 300-kVA generators, a

400-kWh battery bank, and a 125-kVA Static Power Pack from

Advanced Energy Systems. The system has a peak capacity of

over 500 kW and is expected to reduce emissions of CO2 by

approximately 300 tonnes per year. The system cost AU$2M

and was installed in favor of extending the utility grid. The

system was designed, manufactured, and commissioned by

Advanced Energy Systems and powers the Wilpena Pound

Tourist Resort and accommodations for the park personnel.

Australia: Country Overview

Stephen J. Phillips (Advanced Energy Systems)

The Wilpena Pound solar/diesel hybrid system

Duck Creek, Northern Territory

Duck Creek: solar array and interior

of control cabinet

Eppennara, Northern Territory

Powering a village, pastoral station, and school; the Eppennara

power system was commissioned in 1994 and incorporates a solar

array, AES inverter, two diesel generators and a battery bank. The

system operates under a “Build/Operate/Transfer” contract between

the Power and Water Authority of the Northern Territory and

Advanced Energy Systems. With a current peak capacity of

130 kW, it is slated to be upgraded with an 80-kW wind turbine by

the end of 1998. Too remote to ever be considered for grid

extension, the renewable energy hybrid system was chosen over

stand-alone diesel generators.

Powering a village and school, the Jilkminngan (Duck Creek)

power system was commissioned in 1992 and incorporates an

18-kW solar array, 60-kVA AES inverter, two diesel generators

(40- and 80-kVA) and a 100-kWh battery bank. The system is

owned by the Power and Water Authority of the Northern

Territory. With a current peak capacity of 144 kW, the system is

also used for testing different solar technologies. As with most

AES systems, the Duck Creek power station incorporates a

remote dial-in monitoring and control package which is used to

access and analyze solar data via a computer link.

Eppennara power station
Renewable Energy Development in

Bangladesh

 Bangladesh has seen the parallel development of private and

public sector renewable energy rural electrification. Grameen

Shakti is a not-for-profit rural power company whose purpose

is to supply renewable energy to unelectrified villages in

Bangladesh. While the Rural Electrification Board has

electrified a remote island with solar PV, Grameen Shakti has

developed a solar home system sales business. Grameen Shakti

is also developing a wind powered microenterprise zone pilot

project.

Rural Electrification Board Solar Program

• The Bangladesh Rural Electrification Board (REB)

• Solar PV electrification of island village using home systems

and battery charging stations.

• The project was installed in September 1996

• Narsingdi District, Bangladesh

• The project used the existing infrastructure of the REB that is

responsible for rural grid extension in Bangladesh

• Customers pay a monthly fee between US$2.30 and US$4.80

Bangladesh

April Allderdice (NREL)

Grameen Shakti Solar Home Systems

Grameen Shakti Wind-Powered

Micro-Enterprise Zones

• Grameen Shakti

• Micro-enterprise Zones for enterprises that require

more power than a solar home system can provide

• Installations scheduled the Fall of 1998

• Coastal area of Bangladesh

• Enterprises will operate out of Grameen Bank cyclone

shelters, many of which already have Grameen Bank

offices in them.

• End user payments are yet to be determined.

Unelectrified Population = 96 million

•Solar home system sales network

•Sales began September 1996 in four initial zones in

 Bangladesh

•Grameen Shakti technicians work out of rural unit offices to

 ensure local sales and maintenance availability

•Solar home systems range in price from US$3000 to US$600

•Grameen Shakti offers a two-year credit term for sales. Grameen Shakti offers a two-year credit term for sales.

Narsingdi Island people enjoy TV powered by solar energy

A solar-powered store offers longer hours for sales

Installation of 1.5-kW wind turbine in Chokaria, Bangladesh
Renewable Energy Program

Bolivia Electrification

• Solar PV electrification in altiplano and Santa Cruz

• Biomass generation program in lowlands

• Local government support for renewables

• Partnership with CRE

• GIS planning used to identify targets

• Local assembly of equipment

• Training.

Riberalta Biomass Power

• Cooperativa Eléctrica de Riberalta/NRECA

• Brazil nut biomass generation plant

• Installed in 1996

• Amazonian region of Bolivia

• Funding from USAID, Cooperative, E&Co

• 1-MW plant, US$2.2M with grid.

 Bolivia Electrification Program

Granville (Pete) Smith (NRECA/South America)

Altiplano and CRE Solar Electrification

Program

• Cooperative in Santa Cruz and Municipalities in Oruro

and La Paz

• Solar PV electrification programs

• Initiated in 1994, on-going

• Various communities in the altiplano and San Julian,

Santa Cruz

• Financed by local government funds

• Over 2500 systems installed and growing.

 Bolivia Wind Water Pumping Program

• Altiplano and Cochabamba valleys

• Water supply program using wind and solar electric

pumping systems

• Initiated by NRECA in 1993, ongoing

• Llasaraya, Oruro, and Cochabamba

• Funds provided by USAID coordinated with CARE

• 25 systems installed to date.

Riberalta biomass 1-MW power plant

Typical solar home system installed in the altiplano

 Wind water pumping station installed in Llasaraya, La Paz

Unelectrified Unelectrified Population= 3.5 million ++
Chile’s Renewable Energy Program

• Chile’s Comisión Nacional de Energia (CNE) is evaluating

the applicability of renewable energy for rural power

development

• Installation of pilot power systems is occurring in Region IX

and X to demonstrate the use of renewable energy

technologies

• Training of integrators, engineers, and utility representatives

in the design, operation, and maintenance of hybrid power

systems

• Wind resource mapping in regions with large rural

populations.

Villa Las Araucarias Pilot Project

• Inland community supported by forest industry

• Health post, school, and 17 homes electrified

• 9.8-kWh daily load with significant load increase expected

• System supplies 24-hr power

• System includes 7 kW Bergey turbine, 3-kW TRACE

inverter, 33.6-kWh battery bank of Trojan L-16s, 5.4-kW

autostart Honda generator, and 220 volt, and 50 hz AC

distribution grid

• Contributing organizations: CNE, NREL, NRECA, and

Frontel/SAESA.

Chile

E. Ian Baring-Gould (NREL)

Isla Tac Pilot Region X

• Wind-hybrid power system to provide 85 kWh per day of

electrical power for the Chiloe island community of Tac

• Installation planned for December of 1998

• Pilot system to demonstrate wind renewable power systems

for the electrification of island communities

• US$210,000 for the power and distribution systems funded

jointly between U.S. DOE, the regional government, and a

local utility

• Contributing organizations: CNE, Intendencia de los Lagos

 (Region X), NREL, NRECA, and SAESA

• System to introduce technology to be used in Chiloe Islands

Project.

Chiloe Islands Project

• Electrification of 36 islands in the Chiloe Sound using a mix

of wind hybrid and individual home wind systems

• Planned installations for 1999 and 2000

• Islands located throughout the Chiloe Sound in Region X

• Public request for proposal to provide electrical service

issued by the regional government with technical assistance

provided by CNE, NREL, and NRECA

• Over US$12 Million in power system equipment planned

• Contributing organizations: CNE, Intendencia de los Lagos

(Region X), NREL, and NRECA.

Unelectrified Population = 861,000, primarily in the

southern regions

Isla de Chiloe Area of Region X; Preliminary

map of favorable wind resource areas

Village of Villa Las Araucarias and the installed power system

Island of TAC, Region de los Lagos, Chile
Dominican Republic

Rural Energy Delivery

• Since the mid-1980s, the Dominican Republic has experienced

various initiatives employing renewable energy, primarily

photovoltaics, for rural energy delivery.

• Rural energy delivery is strongly market-oriented.

• The emphasis has been on the creation of sustainable

commercial infrastructures for the delivery of products, services,

and financing.

PV Fee-For-Service Operation

• Soluz Dominicana, s.a.

• PV fee-for-service operations are offering stand-alone PV

systems and serving 1,620 as of 9/98

• Began in 1994

• Affects over 160 communities in two northern provinces

• Individual households contract PV service and Soluz installs

and maintains all systems for set monthly fees

• US$1.3M invested to date.

Dominican Republic

John Rogers (Global Transition Group)

Electrical Energy Sector Restructuring

Project (EESRP)

• Winrock International/REGAE

• Promotion and commercialization of small wind-hydro power

generators for village power and other applications under

USAID are financed by EESRP

• Began October 1996

• Countrywide

• Providing technical assistance and loans to project

developers, companies, NGOs, and individuals

• US$3.0M ($700,000 loan/lease fund).

Renewable Energy

Community Water Delivery

• ADESOL (Solar Energy Development Association) and

Inc./Enersol Associates, Inc.

• PV, wind-electric community water systems

• Began in 1993

• Countrywide: six communities—over 1,200 people

• Donations cover civil works; ADESOL finances

commercially supplied RE water systems with revolving loans

• US$200,000 to date.

Total population = 7.5 million

400,000 unelectrified homes, significant need for clean

water and power land area = 45,000 km2

Typical ADESOL financed systems supply 2,000

gallons of water per day for 200 people

Soluz Dominicana technician with a

PV fee-for-service customer

Installation of REGAE financed

wind-electric water pumping system
Organizations Actively Involved in

Renewable Energy Program in Ethiopia

• Ethiopian Science and Technology Commission (ESTC)

• Ethiopian Energy Studies and Research Center (EESRC)

Ministry of Mines and Energy

• Ministry of Health (MOH)

• Ministry of Education (MOE)

• Rural Technology Promotion Programme (RTPP),

Ministry of Agriculture (MOA)

• Addis Ababa University (AAU)

• NGOs: UNICEF, Christian Relief and Development

Association (CRDA), Oxfam UK.

Melkassa PV Pump Irrigation Demo Program

• This demonstration project is owned by Addis Ababa

University (AAU) which was financed by the Swedish Agency

for Research Co-Operation with Developing Countries

(SAREC).

• AAU is administering the research part of the demonstration

program which is operated by eight local farmers.

• The system is 600 Wp and was installed in 1990 by AAU.

• The site is located at Melkassa in the eastern part of Ethiopia.

• AAU is monitoring the system and eight households are

beneficiaries of the system to irrigate 4.5 hectares of land.

• The project costs US$8,185.

Ethiopia - PV Program

Neway Argaw (NREL)

Work-Amba PV Pumping System

• This system was installed in 1994 under the UNICEF-assisted

rural water supply programme.

• The system was administered by the water committee directly

voted in by the community.

• The system is 1.6 kWp and serves 3000 people.

• The system is located at the northern part of Ethiopia.

• The system is operated by the water committee and maintained

by the Ministry of Water Resources.

• The system has a distribution system with four water points.

• The project costs US$40,550.

Unelectrified Population = 85% (50 Million)

Debre Zeit Area PV-Water Pumping System

• This system was installed in 1988 by the Rural Technology

Promotion Programme, Ministry of Agriculture.

• The system was administered by the local farmer’s association.

• The system is 1.2 kWp (M55) and serves 2000 people.

• Users pay US$0.36/month/household.

• The system is located 70 km south of Addis Ababa, Ethiopia.

• The system is operated by the farmer’s association and

maintained by the Rural Technology Promotion Programme,

Ministry of Agriculture.

• The system functions properly except for the inverter

(a Grundfos SA1000) which broke a few times.
A UNDP/GEF Path-Finding Initiative

• US$3 million cost-shared project (UNDP/GEF, Government of

Ghana, and U.S. DOE/NREL)

• Sub-Saharan Africa’s first renewable energy-based rural energy

services company (RESCO)

• The goal is to demonstrate bankability and sustainability, and the

supply of priority energy services to communities willing and able to

pay

• Photovoltaic and other technologies will be used to provide energy

services on a cost-recovery fee-for-service basis

• An independent corporation will implement the pilot project.

Renewable Energy for Rural Social and

Economic Development in Ghana

• Execution: Ministry of Mines and Energy

• Implementation: A new corporation not tied to the existing

electric utility infrastructure

• Timetable: Fall 1998, for three years

• Pilot region: Mamprusi East district

• Unelectrified population in pilot region: tens of thousands of

people in over 70 villages

• NREL is the principal collaborating international scientific

institution, participating in project design, implementation,

training, and technical support.

Ghana

Renewable Energy-based Rural Energy Services Company (RESCO)

Jerome Weingart (Weingart & Associates) and Roger Taylor (NREL)

• Community applications - potable water supply, power for

health clinics, schools, public lighting, community halls,

churches and mosques, and telecommunications and

entertainment

• Productive uses - small-scale irrigation, post-harvest

processing, grain grinding, cold storage, guest houses, shops,

bars, dress makers, artisans, and video stores

• Household applications - lighting, entertainment, and new

high-efficiency low-emission cooking

• Government services - lighting, fans, and communications for

government facilities.

Ghana’s Unelectrified Communities

• 4,000 unelectrified communities with several million

 people.

• Water supply by advanced hand pumps, with round-the-

 clock pumping by women in many villages during dry

 season.

• Water-borne disease is a leading source of death and

 disability.

• Unelectrified health posts and schools limit health

 services and education.

• Lack of electricity constrains economic productivity and

 growth.

Renewable Energy Applications for the

Rural Communities

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Working to Ensure Sustainability Sustainability

• RESCO is designed to be profit-making, with services

 provided on a willingness and ability to pay basis.

• RESCO will own and maintain the equipment, including

 selected end-use equipment (e.g., grain mills, cold

 storage, and water supply systems).

• Three service centers spanning the pilot region (service

 territory) will be established.

• Use of traditional and effective system of bonded cashiers

 for revenue recovery.

Unelectrified Unelectrified Population = 11 million people
Renewable Energy in Guatemala

Guatemala

 Fundación Solar and Winrock International

• If a village has more than 30 houses, 4 m/s wind speed, and

 is located 7 km away from the national grid, wind power is

 the right choice.

• Fuel wood continues to be the main source of energy for

 cooking in Guatemala.

• Renewable energy is not an ultimate solution in Guatemala,

 but it is a means to accomplish other social, economic, and

 environmental goals.

• Stand-alone PV systems are the most common technical

 solution for rural projects.

• Solar PV is economically sensible if communities are 5 km

 away from the national grid and have less than 100 houses.

• Not all of the people can afford to be farmers: productive uses

 of RE is a must in Guatemala.

• Scaling up technologies allows for economic gain, as well as

 for financial profits in small rural businesses.

• Small hydro-electric systems (15-100 kV) are feasible in a

 country with over 4,000 MW of untapped hydro potential.

• There is no explicit policy on rural decentralized energy services or for

 the role of renewable energy.

• The government of Guatemala is promoting the development of

 feasibility or pre-feasibility studies for rural grid interconnection and

 some village electrification using renewable energy.

• The interconnection rate has increased to 50% - 55% of the population,

 but it is expected that in the rural areas the electrification index may be

 lower.

• Privatization has spurred significant investment in fossil fuel generation.

• Recent policy developments have not been very supportive of renewable

 energies, for example; new tax legislation has removed import benefits

 formerly accorded to imports of renewable energy equipment.

• In Guatemala, privatization has been passed, but it is only part of the

 equation: a comprehensive energy policy still needs to incorporate all

 aspects of renewables in the planning equations and support

 mechanisms for decentralized rural energy services.

55% - 65% of the urban population is electrified;

45% of the rural population is electrified.

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Renewable Energy Program

Government of India

• The Indian Renewable Energy Development Agency (IREDA) was

set up by the Ministry of Energy in 1987 to provide assistance to

manufacturers and users of renewable energy systems.

• In 1992, the Ministry of Non-Conventional Energy Sources

(MNES) was established as a department in the Ministry of Energy.

• The Ministry implements the Integrated Rural Energy Program

transferred to it from the Planning Commission.

• A National Program on Biogas Development is a major program of

the Ministry.

• Cogenerated power: GOI policies include wheeling and banking,

third-party sales, and buyback.

• Wind power: The major source for power generation among

renewables, with 1.4 billion units of electricity being supplied to the

grid so far.

Cogeneration in the Indian Sugar Industry

• Indian sugar industry

• Exporting power to the grid

• Initiatives began in 1995

• Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka,

and Andra Pradesh

• Installing high-pressure boilers and superior turbines,

making condenser modifications, and utilizing bagasse

as fuel

• Existing and planned: 310.8 MW.

 INDIA

Winrock International

Commercialization of Solar PV Powered Dryer

• Dr. Rao Associates

• Commercial solar cabinet dryers of natural convection or “forced

circulation” type to enable larger quantities of hygienic and good

quality food products to be dried faster and generate additional

income for rural women and men engaged in this activity

• Began in 1998

• Andhra Pradesh

• Designed and developed by the Society for Energy, Environment,

and Development under sponsorship of UNDP-GEF’s Small Grant

Program, through Development Alternatives, a New Delhi NGO

• Two sizes, 2' x 2' and 2' x 4', using dry materials ranging from 4 kg

to 15 kg per charge.

Solarizing Rural India

• SELCO Photovoltaic Electrification, Pvt. Ltd.

• Provide electricity to the rural population and integrate

PV into the mainstream of the local culture

• Began in 1995 in Southern India

• Developing and marketing small-scale solar PV power

systems to rural households and institutions

• Prices varies.

Although 85% of the villages in India are deemed to have been

electrified, 71 million rural households still do not use electricity.

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Annual mean daily global

solar radiation in India (in

kWh/m2/day)

Distribution of mean daily

hours of sunshine-Annual

Gathering sugar cane trash

to make bagasse

Bagasse plant equipped with an

18-MW turbo-generator set with

66 kg/cm2 pressure and 485°C

temperature boilers

A branch office of SELCO

For rural families, an investment

spread over a two- or three-year

 period can make a basic home

PV system a possibility.
Indonesia’s Renewable Energy Program

• Large geothermal power systems in populated areas

• Retrofitting of remote diesel power plants in the eastern

islands using wind power systems

• Installation of small community based power and water

pumping systems using wind technologies

• Development of financing mechanisms for leasing small wind

power systems for rural electrification

• Market development for individual solar home systems to

supply power in remote unelectrified communities.

Wind Project

• Installation and financing of wind-based power and water

pumping systems in remote communities

• Wind measurement and resource mapping

• Eight systems installed; 40 to be installed

• Projects located in eastern islands, West Timor, and Sumba

focus

• USAID funded; contributing organizations include Winrock

International - project manager; and NREL - technical

assistance.

Indonesia

E. Ian Baring-Gould (NREL)

Wind hybrid power system in West Timor

Diesel Retrofit Study

• Assessment of the diesel retrofit market using wind

technology for the eastern islands

• Focused on the region of NTT and the Maluku Islands

• Analysis data include wind-resource maps, diesel plant

operational data, and maps of the plant distribution, and

transmission networks to determine sites with diesel retrofit

potential

• NREL technical assistance; funding from U.S. DOE,

USAID, and the World Bank. Assistance from Winrock

International and PLN.

Solar Home Systems

• Provide basic electricity to rural customers

• Facilitate private sector participation in renewable

 energy commercialization

• Promote sustainable development and reduces the

 energy sector’s dependence on fossil fuels

• Strengthen Indonesia’s institutional capacity.

Individual PV home system

Sumba, Indonesia-Favorable Wind Resource Areas
DOE/USAID Mexico Renewable Energy Program

• Program has multiple objectives

– Increase sustainable markets for U.S. and Mexican industries

– Demonstrate renewables in combating global climate change

• Focus on off-grid productive uses

• In-country partners have established and funded programs

– Training and technical assistance provided by Sandia team

– Pilot projects to institutionalize renewables within existing

programs

• Phase 2 focusing on replication and greater in-country management.

Water Pumping for Productive Uses

(Through Several Partnerships)

• Primary partner is FIRCO - a technical organization under

the Secretary of Agriculture

• Chihuahua RE Working Group - government and private

organizations (including FIRCO, DGDR, and CFM)

• Water pumping applications include livestock, irrigation,

domestic, and community water systems

• 115 water pumping projects (61.5 kW) in eight Mexican

states

• Focusing on nationwide replication as part of an established

$1.8 billion agricultural development program.

Mexico Renewable Energy Program

Charles Hanley (Sandia National Laboratories)

Protected Areas Management

• Partnerships with World Wildlife Fund, The Nature Conservancy,

and Conservation International

• Demonstration of RETs to facilitate reserve management and

sustainable development programs

• Working with 14 non-government organizations

• 25 projects (total of 19.8 kW) in 10 reserves

• Working with the Mexican Secretariat of Environment to identify

future applications and provide technical assistance

• Demonstrate feasibility and application of renewable technologies

for eco-tourist facilities in Chiapas and Quintana Roo.

Other Partnerships Create a Broad Base

• National Solar Energy Association (ANES)

• Federal Electricity Commission (CFE)

• Center of Energy Research (CIE-UNAM)

• National Energy Savings Commission (CONAE)

• Universities of Chihuahua (UACH), Sonora (UNISON), and

Quintana Roo (UQROO)

• U.S. and Mexican RE companies, SEIA, and AWEA

• Key SNL team partners: SW Technology Development Institute -

New Mexico State University, Enersol Associates, Ecoturismo y

Nuevas Tecnologías, Winrock International, and National Renewable

Energy Laboratory.

Unelectrified rural population is more than 5 million people

Chajul Biological Station

Montes Azules Reserve

Chiapas

1.4-kWp PV Electrification:

• Siemens SP-75 Modules

• 5.5-kW Trace Inverter

• Condumex Controller

• Exide E125-19 Batteries

• 6.3-kW Onan Propane

 Generator

Colonia Modelo Ranch

Mpo. Ascención, Chihuahua

450-Wp PV Water Pumping:

• Siemens SP-75 Modules

• Grundfos SP2A-4/90 Pump

• Grundfos SA-400 Controller

Over 180 projects with

Mexican partners

 Costa de Cocos

 Ecotourist Hotel

 Xcalak, Quintana Roo

10-kW Wind Electrification:

• Bergey Windpower EXCEL Module

• 5.5-kW Trace Inverters (2)

• Bergey VCS Controller

• Trojan L-16 Batteries

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þ Water Pumping

Ë Electrification

Þ Water Purification
Renewable Energy in the Philippines

• The Philippine Energy Plan 1996-2025 predicts that over the plan period,

total energy requirements of the Philippines will increase to an annual

average of 6.6%.

• The Philippine Department of Energy projects that by 2025 renewable

energy will account for 15% of the total energy mix.

• In 1996, geothermal and hydropower provided 9.5% and 14%, respectively,

of the electricity generating capacity in the Philippines.

• Preferred Energy, Inc. (PEI), a Philippine NGO, is working to promote

renewable energy development, support project development, and provide

and facilitate debt and equity financing for RE projects.

• PEI, Sibol ng Aghan at Teknolohiya (SIBAT), and other partners are

developing a Village Power Fund to provide loan financing for village

electrification and productive projects employing renewable energy.

Solar PV Dissemination Project

• Solar Electric Company, Inc.

• Solar PV Dissemination Project

• Began in 1997

• Offices in Metro Manila, Iloilo, Pangasinan, Palawan, Cebu,

Bacolod, La Union, and Davao

• Solar home systems, PV powered water pumping projects,

refrigeration, telecommunications, and electrification for

municipal buildings and offices

• P$4.6 million.

Philippines

Preferred Energy Inc. and Winrock International

Rehabilitation and Expansion of

a Micro-Hydro Facility

• Villa Escudero Plantations & Resort, Inc. (VEPRI)

• Rehabilitation and expansion of its micro-hydro facility,

increasing capacity from 75 kW to 172.8 kW

• Began in 1997

• Villa Escudero, one of the most visited tourist spots in the

country, is two hours from Metro Manila

• Added two micro-hydro plants of 62 kW and 35.8 kW, which

enabled them to maximize exploitation of hydro resources

within the estate with no negative environmental results

• P$10.5 million.

Rice-Husk Fired Grain Dryers

• Pasig Agricultural Development & Industrial Supply Corp.

• Continuous-flow rice-husk fired grain dryer

• Began in 1994

• Being used by medium- and large-scale commercial grain

processing centers all over the Philippines

• The furnace creates a cyclonic motion of the rice husk fuel

inside the combustion chamber while burning, separating ash

that can be sold while mitigating against traditionally-used,

environmentally damaging fuel oil

• A typical 8-t/hr grain-drying plant: about P$5,275,000.

39% of the population (2,917,000 households) remain without access to

the power grid

Panels installed by Solar Electric Company generate electricity to power a radio repeater

station at the Regional Health Center of the Department of Health in Ormoc, Leyte

Tourists wade in ankle-deep water

as they enjoy meals in the soothing

ambiance of water cascading from

the dam.

Traditional and value added: rice-hull

waste that formerly had to be burned

or dumped can be transformed into

reduced electricity expenses and a

new income stream for rice millers.

A view of the micro-hydro plant
U.S. DOE/Russian Ministry of Fuel and Energy:

Joint Collaboration for Renewable

Energy Resources in Russia

• Agreement by Joint Committee of Economical and Technical Cooperation

between Prime Minister Chernomyrdin and Vice President Gore (September

1993) to examine options for Russia’s energy future (including EERE)

• Memorandum of Cooperation signed by Russian Minister of F&E Yuri

• Shafrannik and U.S. DOE Secretary Hazel O’Leary (October 1993)

• Establishment of EERE Joint Coordinating Committee by Russian Deputy

Minister Vitaly Bushuev and U.S. DOE Assistant Secretary Christine Ervin

(October 1994)

• Meeting between NREL and Russian Ministry of F&E representatives to

establish Renewable Energy working group and prepare program

implementation plan (November 1994).

Russian Federation

Vahan Gevorgian (NREL)

RUSSIA

Renewable Energy Resources

Solar Energy

Hydro Power

Centralized and

Local Grid

Geothermal

Energy

Tidal Energy

Biomass

Wind Energy

Traditional Energy Sources:

Oil, Natural Gas, Coal – 73%

Hydro Power – 18%

Nuclear Power – 9%

Murmansk region

Arkhangelsk region

Chukotka

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NREL’s Participation in the U.S./Russia

Cooperative Program for Renewable Energy

Resources

• Three systems in Arkhangelsk and Murmansk are fully operational.

• Fourteen more wind turbines are being installed in Chukotka.

• NREL has provided training for Russian specialists in using of Hybrid2

computer model and operation of DAS for remote hybrid systems.

• Five sets of monitoring equipment have been purchased by NREL to be

installed on operational hybrid systems.

• Remaining systems are expected to be installed by the end of 1998.

• Wind/diesel test facility will be established with NREL assistance in

Istra, near Moscow.

Installation of Wind/Diesel Hybrid Systems

in Russia’s Northern Territories

Wind/diesel hybrid system at Krasnoe Village, Arkhangelsk Region

• Technical assistance in design, installation, and operation of 21 wind/diesel

hybrid systems in Russia’s Northern Territories (40 BWC wind turbines with

related equipment had been purchased and shipped to Russia in 1996 using

USAID CIP funds)

• Feasibility study and installation of a 1-MW biomass power plant in

Arkhangelsk region

• Assistance in the start-up operation of a 2-MW/yr triple junction

a-Si manufacturing facility in Moscow using U.S. technology

• Explore possibilities of financing large-scale wind/diesel hybrid and biomass

power systems for the Russia’s Northern Territories (900 sites)

• Develop the strategic plan for electrification of Russian Northern Territories

• Feasibility studies done for large utility-scale wind farms in Southern Russia

(Krasnodar/Novorossisk) and Russian Far East (Nakhodka).

Feasibility Study for 1-MW Biomass Power Plant in

Arkhangelsk Region

• Several site visits were made in 1996-1997 to the village of Verkhne-ozerski,

in the Onega Region of Arkhangelsk Oblast, to evaluate the feasibility of

building biomass-combustion electric power plants, using waste forest

products.

• A detailed pre-feasibility study was completed for a 470-kW power plant in

Verkhne-Ozerski in 1998, that showed the economic viability of such a power

plant. The plant will use 13,000 tons of wood waste, available near the

village.

• The design is being expanded to include three more villages. The power

plant’s capacity is being increased to 1 MW. The feasibility study should be

complete by the Spring of 1999. The MFE has been authorized by the World

Bank to allocate up to US$3M towards the construction of the power plant.

• The U.S. Trade and Development Agency is planning to fund a

comprehensive study that will include four 1-MW biomass electric power

plants in the Arkhangelsk region in FY99.

Site for a 1-MW Biomass Power Plant in Verkhne-Ozerski village,

Arkhangelsk Region that will burn nearby wood waste.

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South Africa

Gabrielle Seeling-Hochmuth

South African Progress in RE Systems

• PV, few hybrids in clinics and schools

• SHS/BCS projects, Wind, PV powered water pumping

• PV/diesel hybrids: farms, resorts, telecommunications

• Hybrid demo systems planned

Still Needed

• Training, participation, and entrepreneur selection

• Clustered projects for sustainable O&M

• Integration of activities and services

• Access to financing and markets, competitive products

• Monitoring and evaluation.

Income/Employment Generating Activities

Businesses that use PV/off-grid electricity

•Mainly in retail

•PV/hybrid grid electricity to improve output and quality

•Irrigation for farms and agricultural processing

Business creation through PV/off-grid infrastructure

• Trained PV electricians

• Franchises with local shops (e.g., PV Battery Charging), 

 equipment is marketed

• Good PV/off-grid industry infrastructure in South Africa.

PV School and Clinic Programmes

• Education, healthcare, meeting facilities create empowerment and

 contribute long-term to productivity

• Schools program is Eskom driven (RDP/donor funds)

 - 1200 PV systems for schools installed so far

• Clinic program is IDT driven

 - 150 PV and PV-hybrid electrified clinics so far

 - Lights, vaccine refrigerators, and 2-way radios

 - Progress slow, but O&M sustainable.

Battery

Charger

DC

Load

Inverter

Battery

AC

Load

Diesel

Wind

Solar I Bat

I DC Bus

I Re

I Dies

I Inv

xR V I DC Bus

xS

Government Policy

Nelson Mandela in 1995:

• Eliminate poverty - create employment in rural areas

• Government committed to integrated rural development

• 73% rural households not electrified by the end of 1996

Social equity framework:

• PV/off-grid electrification of rural households

Economic development framework:

• PV/off-grid electrification of rural centers of

 productive activities.
Thailand’s Renewable Energy Programs

• DEDP PV Battery Charging Stations

• PWD PV Battery Charging Stations and PV powered water

pumping stations

• EGAT PV, wind, geothermal, and fuel-cell demonstration

and testing facilities

• EGAT PV rooftop program

• PEA PV rural electrification program

• NEPO Energy Conservation Program has a Voluntary

program which provides RD&D for renewable energy

technologies (e.g., biogas and PV).

DEDP PV Battery Charging Station Program

• Department of Energy Development and Promotion

(DEDP)

• PV Battery Charging Stations

• Five-year program; began in 1995

• In rural villages where grid connection is not foreseen

• DEDP and its regional energy centers identify sites, install

stations, and train local technicians

• 300 3-kW stations are planned; 176 are installed at

750,000 Baht (Thailand currency) each.

Thailand

Debbie Lew (IIEC)

PWD PV Battery Charging Station Program

• Public Works Department (PWD)

• PV Battery Charging Stations

• Started in 1988

• In rural, unelectrified villages, mostly in the northern

region

• PWD identifies sites, installs stations

• 1100 795-W stations installed at 225,000 Baht each.

Promthep Alternative Energy Station

• Electrical Generating Authority of Thailand (EGAT)

• Grid-connected wind/PV hybrid

• Started in 1990

• Phuket Island, Southern Thailand

• EGAT is demonstrating and testing different wind and

PV technologies at this site. The DC power generated

by the small wind turbine and PV power is converted to

AC and connected to the grid

• 10-kW PV; two 10-kW and one 150-kW wind turbine.

 Unelectrified Population = less than 2% of total population
Brazil

• W = 1000-1500 , HH/Stn - 50-70 , # national - 40

• Outlets - 12 , Wp/Outlet - 85-128 , Battery Charge Reg - Bus

Series 13.5 V

• LVD - yes, Battery Type - solar, SLI, 54-100 A-h Est Life - 4 yrs

• Capital Cost - $9.18/Wp, Av Charge Time - 2 days/battery

• Subsidy - (5%), Fees - $10/mo (4x + bat)

• Implementing Agency - national NGO (FTV)

• Problems/Issues - Collection, loan repayment

Morocco

• W = 1320 , HH/Stn - 200 , # national - 30

• Outlets - 12 ,Wp/Outlet - 110, HV Reg - Shunt

• LVD - no, Battery Type - DD, SLI 70-100 A-h Est Life- 2 yrs

• Capital Cost- $9.35/Wp, Av Charge Time - .8 day/battery

• Subsidy - (50%), Fees - $1/charge

• Implement Agency - private (Noor Web franchise)

• Problems/Issues - subsidy, profitability

Thailand

• W = 800 and 3000, HH/Stn - 30 and 80, # national - 1,350

• Outlets - 5 and 20,Wp/Outlet - 155, HV Reg - series and none

• LVD - no (indicator), Battery Type - solar, DD,

 SLI 32-120 A-h Est Life- 2 yrs

• Capital Cost - $11.90 to 5.50/Wp, Av Charge Time - 1

day/battery

• Subsidy - (100%), Fees-free to $0.04/charge

• Implement Agency - government (Public Works and Energy)

• Problems/Issues - subsidy removal

The Philippines

• W = 300, HH/Stn - 20, # national - 225

• Outlets - 2 ,Wp/Outlet - 150 , HV Reg - none

• LVD - no, Battery Type - DD, SLI 70-150 A-h Est Life- 2 yrs

• Capital Cost - $6.455/Wp, Av Charge Time- 1 day/battery

• Subsidy - (80% -100%), Fees - $0.35 - $0.75/charge

• Implement Agency - various government and NGOs

• Problems/Issues - service level at station competing programs

Solar Battery Charging Stations

Stephen Graham (SGA Consulting Ottawa,Canada)

 12 outlets with LED SOC indicators and batteries lvd protected

A SBCS franchise- note batteries for sale

20-outlet SBCS self-regulating - note connector plugs

Two-outlet self-regulating SBCS
Services Offered at Health Clinics

Health Facility Applications

Types of Rural Medical Facilities

Health Clinics

Tony Jimenez (NREL)

• Inoculations

• Treatments:

Respiratory Infections Venereal Diseases

Parasitical Diseases Malaria

Diarrheal Diseases Skin Disease

Eye Disease

• Pre-Natal/Post Natal Care & Child Birth

• Traumas: Burns, Simple Fractures, Wounds

• Dental

• Referral to Hospitals

• Public Health Education

• Family Planning

• Surgery (abdominal and OB/gynecological) (Hospital)

• Radiological (Hospital)

• Laboratory (Hospital)

Health Post

• Facility may or may not be wholly dedicated to health services

• No full-time staff, except possibly a public health worker

• Offers only the most basic services.

Health Clinic

• Typically staffed with one or more full-time nurses who

 may live on site

• Provides wider range of basic services

• May have one or two beds for in-patient care.

Referral Hospital

• Staffed with one or more doctors

• Provide in patient care

• Equipped to do abdominal/OB/gynecological surgery

• Provide radiological and laboratory services.

Health Clinic Showing RE Applications Application Power Duty Cycle Energy Use

 (Watts) (Hr/day) (Wh/day)

Vaccine Refrigerator 60 6 - 12 410 - 720

lights (each) 20 2 - 12 40 - 240

VHF Radio

 Stand by 2 12 24

 Transmitting 30 1 30

Microscope 15 1 15

Vaporizer 40 1 - 4 40 - 160

Oxygen Concentrator 300 1 - 4 300 - 1200

Overhead Fan 40 4 - 12 160 - 480

Water Pump 100 6 600

(1500 l/day @ 40 m)

12” B&W TV 15 1 - 4

15 - 60

19” Color TV 60 1 - 4

60 - 240

VCR 30 1 - 4 30 - 120

AM/FM Stereo 15 1 - 12 15 - 180

Electric Sterilizer 1500 0.5 - 2 750 - 3000

Diagram courtesy of John R. Boone and Solar Electric Specialties, Inc. Diagram courtesy of John R. Boone and Solar Electric Specialties, Inc.

Health Clinic Annualized Cost

3.5

4

4.5

5

5.5

6

6.5

7

7.5

3.5 4 4.5 5 5.5 6 6.5

Average Insolation (kWh/m2/day)

Average Wind Speed (m/s)

$530 $530 $530 $530 $530

$560 $560 $560 $560 $560

$590 $590 $590 $590 $590

$630 $630 $630 $630 $595

$650 $650 $650 $630 $595

$710 $710 $690 $630 $595

$795 $750 $690 $630 $595

PV

WTG+PV+Generator

Annual Load: 766 kWh

WTG

WTG + Generator

The above graph indicates how power system configurations and annualized costs vary with

the available resource. The costs are for a power system capable of supplying 2 kWh/day.

The results assume a particular economic scenario and are indicative only.

Health clinic in West Bengal, India 
 The micro-economy is thriving in the developing world. It needs energy and has an income to pay for it, but until now there

has been no direct conduit through which to target this population with renewable energy resources. With the advent of the

micro-credit banks and their associated micro-enterprise development programs there are now local organizations that serve as

an interface with this sector.

Micro-Enterprise

April Allderdice (NREL)

Domestic Lighting Systems for

Micro-Enterprise

Micro-Enterprise Zones

The Renewable Energy for Micro-credit and

Micro-enterprise Applications Guidebook

 NREL and Global Transitions Consulting are teaming up to

create a renewable energy applications guidebook for microcredit banks and micro-enterprise development organizations.

The guidebook will take a critical look at the opportunities

and challenges in bringing renewable energy to the microenterprise sector.

Many income generating activities require more power than a

typical solar home system can provide. To supply these higher

quality energy services, Grameen Shakti is developing the

micro-enterprise zone concept, creating an electrified center

where rural villagers can come to establish workshops and

businesses with the benefit of AC power.

Small household lighting systems increase the capacity

and profitability of micro-enterprise through longer

working hours, longer selling hours and the use of small

motors or appliances. In Bangladesh, Grameen Shakti

targets micro-entrepreneurs as part of their solar home

systems marketing program.

Grameen Shakti customers include a hardware shopkeeper, a saw mill owner,

and an electronics repairman

Bangladesh Rice Mill

A Grameen Bank branch office

Introduction
Lessons Learned

School Applications

Renewable Energy for Schools

Tom Lawand (Brace Institute) & Tony Jimenez (NREL)

• Undertake a thorough preliminary analysis of a school before installing

a system.

• Provide detailed instructive literature to accompany installed

equipment.

• Involve the caretaker in all activities concerning the renewable energy

system.

• Provide every new teacher with detailed instruction concerning the

proper operation and maintenance of their RE system.

• Give every new teacher explicit instructions on what to do in case of a

technical difficulty that they are unable to repair themselves.

School energy needs include:

Electricity for lighting, communication, water

pumping teaching aides and appliances.

Thermal energy for cooking, water heating and space

heating

A prerequisite for a technically sound installation is

a thorough analysis of a school’s energy needs and

the energy-system knowledge base of the individuals

living in the area.

User training and the establishment of a good

service infrastructure are equal in importance to a

technically sound system installation.

Teacher turnover is often high in remote schools.

The importance of involvement, input, and training

the teachers about the installation of the system will

increase the likelihood of success, acceptance, and

soundness of the energy system.

Boys at play in front of the PV powered Ipolokeng school in South Africa

• Communications - radio-telephone, fax, short-wave radio

• Computer

• Teaching aides - VCR, TV, film projector, slide projector

• Water pumping and water treatment

• Cooking and food preparation

• Refrigeration

• Space heating and cooling

• Water heating

• Washing machine

• Kitchen appliances

The interior of a classroom at the Ipolokeng school in South Africa, showing one of

the computers that is powered by the PV panels on the roof
Wind-Electric Water Pumping

• Quintana Roo, Mexico

• Bergey 1500 on Rohn 25 m tower

• 1.0-HP Grundfos submersible

• Expect 10 m3 per typical day

• Connects to existing water distribution system

• Design by Ecoturismo y Nuevas Technologias s.a.

• Installation Assistance by NREL and Sandia

(September 1998)

• Funding from USAID.

PV-Powered Pumping and Desalination

• Sadous (near Riyahd), Saudi Arabia

• 1680 Wp for Reverse Osmosis (RO);

980 Wp for submersible pump

• 600 liters/hour of drinkable water

• Installed in the Fall of 1994

• Design and performance papers presented

December 1995 (available on request).

Analysis of Water Treatment Systems

• Matching energy needs and usage patterns

• Current research on UV disinfection units

• Cycle testing of UV bulb lifetime/output

• Evaluation of system integration issues: small

wind turbines and electrodialysis reversal water

desalination and UV water works disinfection unit.

NREL Water-Related Technical Contacts

• Wind: Ian Baring-Gould (ian_baring_gould_@nrel.gov)

• PV: Byron Stafford (byron_stafford@nrel.gov)

• Solar Thermal: Mary Jane Hale (mary_jane_hale@nrel.gov) or

Jay Burch (jay_burch@nrel.gov)

• Renewable Chemical Technologies and Materials:Dan Blake

(daniel_blake@nrel.gov).

Water Projects and Lab Research

Ron D. White (NREL)

Pump house and turbine provide clean water

in Quintana Roo, Mexico

• An Overview of Water Disinfection in Developing Countries

and the Potential for Solar Thermal Water Pasteurization

(NREL/TP/550-23110)

• Opportunities for Renewable Energy Technologies in Water

Supply in Developing Country Villages (NREL/SR-430-22359)

• Overview of Village Scale, Renewable Energy Powered

Desalination (NREL/TP-440-22083)

• Other Technical Papers available as well.

Reports Available

Wellhead, Panels, and RO Unit
 Fuel flexible:

• Efficient

• Simple to operate

• Minimum negative impacts on the environment

• Power range: 5 kW - 5 MW.

Biomass Systems

Raymond Costello (DOE), Rich Bain (NREL), and Tom Mancini (SNL)

Individual Households to

Institutions (hospitals, schools)

Less Than 100 kWe

• Sunpower Gasification/Stirling Engine

• CPC Gasification/IC Engine

• STM Gasification/Stirling Engine

• Reflective Energies Gasification/Gas Turbine

Small Villages and Industries 100 kWe - 300 kWe

• Reflective Energies Gasification/Gas Turbine

• Bechtel Gasifier/Engines/Gas Turbine

Industries, Mini-Grids, and Grid Support

 Greater Than 500 kWe

• Agri-electric Fluid-Bed Combustor/Steam Turbine

• Bioten Direct-Fired Combustor Turbine

• Carbona Corp Gasification/Steam Turbine

• EERC Fluid-Bed Combustor/Steam Turbine

• Niagara Mohawk Gasification/IC Engine/Gas Turbine

China Village Power Concept

PR China Ministry of Agriculture and NREL

• Phase 1: Feasibility Studies

• Phase 2: Prototype Development and Testing

• Phase 3: Integrated Systems Demonstration

Multiphase Project:

NREL’s molecular

beam mass 

spectrometer

helps industry

partners define 

process conditions 

in real time and 

minimize process 

emissions

Small Modular Biomass Systems

Objective: To develop small modular

biopower systems
Dish/Engine Technology

Concentrating Solar Power

Gray Lowrey (Sandia National Laboratories)

SAIC's 2nd Generation 25-kW Hybrid Dish/Stirling System at

Golden, Colorado

Solar Two at Daggett, California

Trough Technology

• Solar energy reflected by parabolic troughs onto the heat

collection element

• Circulated synthetic oil absorbs the sun’s energy and is

used to create steam for the generation of electricity with

conventional turbines

• 30-MW to 80-MW systems provide a wide range of

applications

• 354 MW of trough fields are currently operating in the

United States

• Commercial plant operations have optimized performance,

reduced costs, and improved efficiencies.

SEGS Troughs at Kramer Junction, California

Power Tower Technology

• Solar energy is reflected by a field of mirrors (heliostats) to a

receiver atop a centrally located tower.

• Molten salt, the heat transfer fluid, flows through the receiver

to absorb the sun’s energy, and is used to create steam for the

generation of electricity with conventional steam turbines.

• The ability to store heat in the form of molten salt makes it

possible to generate electricity at any time of the day, not just

while the heliostats are receiving solar energy.

• Solar Two, a 10-MW demonstration project, is currently

operating successfully in California.

• 30-MW to 200-MW systems are projected to offer the lowest

cost electricity produced from solar energy.

• Solar energy is concentrated through mirrored array onto

 a thermal receiver

• Heat is converted to three-phase 480-volts electricity by

 a Stirling engine

• Solar-to-electric conversion as high as 30%,

 significantly higher than any other solar technology

• 5-kW to 25-kW systems ideal for rural applications

• Multiple dishes can be connected for increased power

 needs.

Concentrating solar power (CSP) technologies (previously referred to as solar thermal electric technologies) use mirrors to

concentrate the sun’s energy up to 10,000 times to power conventional turbines or heat engines to generate electricity. This clean,

secure, environmental friendly power has the potential for major impacts in international markets and diversifies our options for

domestic electricity production. Energy from CSP systems is high-value renewable power because energy storage and hybrid

designs allow it to be provided on-demand—even when the sun is not shining.

Concentrating Solar Power Technology Status and Projected Cost

Type of

Techonolgy

Technology

Status

Unit

Capacity

Capital Costs

(US$/kWh)

O&M

(US¢/kWh)

Levelized Energy Cost

(US¢/kWh)

Year 2000 Year 2010

Dish/Engines Early Technical

Feasibility

5 kW to

50 kW

$2,900 2.0 8.6 – 13.0 4.0 – 6.0

Troughs Early Commercial

Evolution

30 MW

to

80 MW

$2,900 1.0 6.8 – 11.2 5.6 – 9.1

Power Towers Demonstrated

Technical

Feasibility

30 MW

to

200 MW

$2,400

To

$2,900

0.7 5.2 – 8.6 3.3 – 5.4
One Slim Hole can Supply Enough Working

Fluid for a Small Power Plant

• Small diameter (< 6′′) holes can provide enough steam or

brine for power plants ranging from 100 kW to several MW.

• Slim holes require smaller drill rigs, which have less

environmental impact, lower costs, and provide easier access

to remote locations.

• If large-scale production is a subsequent possibility, slim

holes also give reliable predictions of a reservoir’s

productivity.

Mini-Geothermal for Village Power

John Finger (Sandia National Laboratories) & Jim Combs (Geo Hills Associates)

These curves show power production from different hole sizes and temperatures

for both flash and binary plants.

GEOTHERMAL OFF-GRID POWER

WORKSHOP

This workshop will be held in Reno, Nevada, on

December 2 - 4, 1998. It will be directed at anyone

involved with reducing the costs and increasing the

availability of geothermal base-load, small-scale

electrical power installations.

Brochures are available from John Finger, Sandia

National Laboratories, (505) 844-8089 or

jtfinge@sandia.gov or the Geothermal Resources

Council at (530)758-2360.

Small Power Plant Technology Exists

• Small power plant technology exists in modular

form, and has been demonstrated in sizes as small

as 100 kW.

• Geothermal power plants are extremely reliable,

with an average load factor over 90%.

• Geothermal power plants require much less

surface land area than wind or solar plants.

Economic Highlights

• Power from small geothermal plants is usually not considered

for a developed grid, but can be highly competitive compared

to other options for remote locations. It is especially suitable

for base-load generation.

• Cost of power will be highly site-specific, but analysis for a

representative example gives a rate less than US$0.15/kWh

• The analysis above does not consider cost savings from using

slim holes.

• Most geothermal resources in Africa, Central America, and

around the Pacific Rim are in emerging economies.

World-wide prospective geothermal areas based on volcanism, seismicity, and

plate boundaries.

A 300-kW geothermal binary plant has operated for four years in Fang, Thailand.
Rural Power Development

• Conventional rural electrification relies on grid extension

or diesel power plants.

• Hybrid systems are often a less expensive alternative for

remote communities.

• Economics depend on the renewable resources, the load

profile, and the cost of the conventional alternatives.

• Hybrids range from less than 1 kW to greater than 1 MW.

Hybrid Power Systems

E. Ian Baring-Gould (NREL)

Costa de Cocos 11-kW wind-diesel hybrid system

Retrofit of Existing Diesel Power Plants

• Use of renewable technologies and advanced system control

to enhance the economic efficiency of existing diesel

gensets

• Applicable to diesel gensets of all sizes

• Five basic system topographies from the installation of more

efficient diesel engines to advanced hybrid-system designs.

• Cost of capital equipment is offset by the savings in diesel

fuel, systems operation, and maintenance expenses

• Decrease in polluting emissions and reliance on plant

personnel because of the use of clean technologies and

controls.

Schematic of potential components in a hybrid power system

Xcalak hybrid power system - diesel retrofit completed in 1995

Atlantic Orient Corporation 50-kW wind turbine provides power to

the Alaska Kotzebue Project.

Alaska/Kotzebue Project

• Owned by Kotzebue Electric Association

• Wind-diesel system for predominantly Inupiat Eskimo village

 of 3000 people

• Three 50-kW AOC wind turbines installed; seven additional

 50-kW AOC turbines to be installed

• Several large diesels including 3-MW diesel

• Initial funding by the State of Alaska, additional funding by

 U. S. DOE

• System reduces life-cycle cost of energy by displacing diesel

 fuel consumption.

• Wind-diesel hybrid system with 7-kW Bergey wind turbine, two

 5.5-kW Trace inverters, 50 kwh of Trojan L-16 batteries, and

 associated hardware

• System supplies 24-hour power for small scuba diving and fishing

 resort; loads include refrigeration, water desalination (reverse

 osmosis), kitchen appliances, workshop tools, fans, and lights

• System reduces life-cycle cost of energy primarily through

 displacement of diesel fuel, but also lowers air and noise pollution

 associated with diesel

• Turbine retrofitted with complete corrosion-proof package to

 reduce effects of salt water corrosion.

Costa de Cocos, Mexico, Wind-Diesel System
C.E. Gregoire Padró (NREL) and M.J. Fairlie (Stuart Energy Systems)

Hydrogen for Rural Electrification

• 40-kW (nominal) photovoltaic array

• Alkaline electrolyzer

• Compressor for high pressure (5,000 psi) storage of hydrogen

• 14,000-scf storage at 5,000 psi; with 80,000-scf supplemental

 storage at 2,200 psi

• Hydrogen dispensing station for Xerox Corporation maintenance

 fleet.

Clean Air Now! (CAN!)

Renewable Hydrogen Project

(El Segundo, California, U.S.A.)

Aerial view of a CAN! facility near the Los Angeles airport

• Stand-alone integrated power system

• Overcomes renewable energy gap by using hydrogen energy

 storage

• Flexible, renewable resources can be used, such as wind, solar,

 and hydro

• Hydrogen for electricity and motive power

• Can displace diesel power generators in remote communities

• Promotes use of indigenous resources for clean fuels.

Hydrogen Village

Stuart

Power Grid Community

Fuel Cell Module

Hydrogen Storage

Electrolysis module 

with Power Conditioning

Pond

Oxygen Water

Hydrogen

Solar 

Panels

Wind Turbines

Hydro Electric 

Power

Hydrogen Village concept

International Energy Agency

Annex 11 Modeling Efforts

• Seven countries participated in a 3-year effort to develop design

 guidelines and an analysis tool for evaluation of hydrogen

 demonstration projects.

• Data were collected on existing hydrogen demonstrations.

• Twenty-four component subsystem models were developed for

 hydrogen production, storage, distribution, and end use.

• Integrated systems were designed using component models.

• Numerous publications on this work are available in the literature.

International Energy Agency

Annex 13 Analysis Effort

• Cost models will be developed for the 24 existing and any

 additional component models.

• Technical and economic evaluations will be performed on

 proposed or existing hydrogen demonstrations.

• Life-cycle assessment will be performed to quantify the

 environmental benefits of hydrogen energy systems.

• Activity will begin in November 1998. Participation is open to

 all IEA countries; non-IEA countries are also encouraged to

 participate as observers.

Proposed Technology Pilots Existing
Photovoltaics (or PV)

• PV is the direct conversion of sunlight to DC electricity using a

semiconductor effect—there are no moving parts.

• PV cells—the basic building block—are made from either silicon (singlecrystal, polycrystalline, and amorphous), cadmium-tellurium, or alloys of

copper indium selenium.

• Single-crystal and polycrystalline silicon modules are the most common

worldwide, followed by amorphous silicon. Cadmium tellurium and

copper indium selenium modules are being introduced.

• PV cells are interconnected to increase the output voltage and current.

The PV cells are packaged into a PV module to protect the cells from

water, humidity, physical damage, and to provide electrical safety.

Photovoltaics

Byron Stafford (NREL)

• International standards cover module power ratings and

reliability. Many companies offer 10 - 20 year

warranties on their modules.

• Modules can be mounted on the ground, on roofs, on

poles, or on floats on lakes. Modules can be

interconnected for higher voltages or currents. Most

modules are made for charging a 12-volt lead-acid

battery.

• PV systems can power DC equipment or, with an

inverter, AC equipment. PV systems can be used in

hybrid systems with wind turbines or generators.

PV is Modular and Reliable

PV Economics

• Module prices are US$4.50 - $6.00/W for all PV

technologies. The price in other countries will depend on

quantity, available supply, taxes, tariffs, and shipping.

• The solar resource and electrical loads are the primary

factors in determining the size, and hence cost, of a PV

system. Reducing electrical loads will result in lower cost

PV systems.

• International reliability standards include testing for wind

loading, hail impact, thermal cycling, and electrical

isolation. Modules that meet the standards will last longer

in the field, resulting in a lower system life-cycle cost.

PV cells are series-interconnected in a PV module.

Single-crystal silicon PV cell shown above.

Worldwide PV shipments continue to increase.

PV modules generally range in size from from 50 W to120 W and can be installed by one to two people. Several modules can be interconnected for more power.
Kotzebue Wind-Diesel System

• Owned by Kotzebue Electric Association

• Wind-diesel system for predominantly Inupiat Eskimo village

of 3000 people

• Three AOC 50-kW wind turbines installed; seven additional

50-kW AOC turbines to be installed

• Several large diesels including 3-MW diesel

• Initial funding by State of Alaska, additional funding by DOE

• System reduces life-cycle cost of energy by displacing diesel

fuel consumption.

50-kW turbines in Kotzebue, Alaska

Micro-Turbines for Electrification of

Remote Schools, Health Posts, and Homes

in the Dominican Republic

• 300-W Southwest Wind Power Air Turbine used for remote

 electrification of small loads in the Dominican Republic

• Turbines are inexpensive and easy to install

• Turbine package includes batteries, a charge controller, and

 a small inverter.

Villa Las Araucarias Hybrid System

• Inland village community supported by forest industry

• Health post, school, and 17 homes electrified

• 9.8-kWh daily load with significant load increase

expected

• System supplies 24-hour power

• System includes 7-kW Bergey turbine, 3-kW TRACE

inverter, 33.6-kWh battery bank of Trojan L-16s,

5.4-kW autostart Honda generator, and 220-volt,

50-hz AC distribution grid.

7-kW Turbine in Villa Las Araucarias

• 1.5-kW wind turbine directly connected to an off-the-shelf

3-phase Grundfos centrifugal water pump

• Variable voltage and frequency output of wind turbine results

in variable speed water pumping

• Low head (4-6 m) high volume (up to 150 m3/day) small plot

irrigation application

• More efficient than conventional mechanical wind water

pumping systems

• Installed at the Small-Scale Irrigation Management Project -

Oesao Demonstration Farm, Timor.

Village Power Wind Applications

David Corbus (NREL)

Wind-electric Water Pumping in Indonesia

10-kW turbine directly coupled to a water

 pumping system

300-W turbine in the Dominican Republic
National Renewable Energy Laboratory’s Village Power Program

Lawrence Flowers (NREL)

Andrew McAllister of NRECA provides a training course on renewable energy to thevillagers of Isla Nahuel Huapi as part of the village training program in Chile.

Village of Villa Las Araucarias and the installed power system Isla de Chiloe Area of Region X; Preliminary map of favorable wind resource areas

Renewa

• Dedic• Provid develo• Provid from m over 2• Projec photo (e.g. r

A small island in the Chiloe Region of southern Chile.

1000m

SunWize Wind-PV-Diesel system at the National Wind Technology Center

RSVP Home Page

Russia:

• Trained an• On-site tra

Mexico:

• Workshop• Installatio

Chile:

• On-site tra• Training o

China:

• Training o

Brazil:

• Training o• In-country 

Philippines:

• Trained SP

Analysis and Model Development

NREL has developed a suite of Village Power analytical models:• Hybrid2 is a detailed engineering model for technical and economic performance of hybrid systems.• HOMER is an optimization model for quick and easy screening, economic comparisons, and conceptual design of hybrid systems.• ViPOR is a grid optimization model that lays out village mini- grids and uses HOMER to compare mini-grids to individual household systems.• NREL is developing a Regional Planning Model (RPM) that will use both HOMER and ViPOR to identify the conditions under which grid extensions, mini-grids, and individual systems have the lowest cost. RPM will interface with ARCInfo to exchange information on the existing grid and resource and demographic data and display its results geographically.

 Approach:• Important village power applications are identified and integrated renewable energy solutions are designed and developed to power those applications.• Commercial systems are tested to ensure compatibility with specific village power applications (e.g. ice making and water desalination). Example: SunWize commercial hybrid system includes 1.8-kW PV, 5.8-kW diesel, two 4 kW inverters, and 535-ah battery bank at 48 volts with a connection for a wind turbine up to 6 kW . The system has been tested at the NWTC and will be deployed in a pilot project in the Dominican Republic. It is ideally suited for productive use applications such as ice making or water desalination (e.g. reverse osmosis).

Applications Development/Testing

Russia: Assists the Russian Ministry of Fuel and Energy in thedeployment of 21 wind-diesel systems in Russia's Northern Territoriesand feasibility studies for construction of a 1-MW demonstration biomasspower plant in Arkhangelsk regionMexico: Provides technical assistance to wind projects including villageelectrification, eco-tourism, and water pumping projectsChile: Provides full range of assistance on small wind electrificationprojects including resource assessment, training, and pilot projectdevelopment and installationBrazil: Multi-faceted approach to renewable energy implementation andcommercialization including solar home lighting pilot projects as well astwo large hybrid wind/PV/diesel pilot projectsChina: Works with in-country partners on renewable energy projects andtraining including resource assessment, pilot project and O & M plans,project identification, financial analysis, and pilot project implementation.

NREL's Chile wasoftwarecombinedistribut. The puin Chilomake rur. NREL organizawind ene

Pilot Projects 
Brazil Rural Electrification Project (FY 2000)

The proposed project aims to provide electricity to

disperse rural populations in Brazil, based on

renewable energy supplied from the private sector.

Total World Bank/GEF support is US$70M

Brazil

Argentina RE for Rural Markets (FY 1999)

This project will provide electricity to rural areas in

Argentina in a sustainable manner using renewable

energy sources by the private sector. The project

supports consolidation of power sector reform.

Total World Bank/GEF support is US$60M

Argentina China RE Promotion (FY 1999) 

This stand-alone renewable energy 

project will support the accelerated

development of renewable 

resources of energy (190 MW of 

wind, 200,000 solar home systems,

plus technical assistance). 

Total World Bank/GEF support is US$135M

People’s Republic

 of China

The Sri Lanka Energy Services Delivery Project (ESD)

ESD encourages grid and off-grid energy services using renewable

energy and demand-side management. The project includes a credit

component to help finance private sector investments; NGOs and

cooperatives in off-grid photovoltaics and village hydro schemes;

rehabilitation of grid-connected, mini-hydro sites, and other

applications. The project also includes a grid-connected pilot wind

farm conducted with the local utility, the Ceylon Electricity Board

(CEB). Expected results include installation of up to 26 MW of

renewable energy capacity, including up to 30,000 solar home

systems; annual update of the small power purchase tariff; signing of

at least 12 small power purchase contracts; and CEB-generation

planning models.

Total World Bank/GEF support is US$30 million

Micro-hydro electric power station provides clean, safe energy in Sri Lanka.

Renewable energy: making a difference in India

) Asia Alternative Energy Program (ASTAE) and Energy,

 Mining, and Telecommunications Sector Unit (EMT)

 support project preparation

) Solar Development Corporation (SDC) promotes PV

 development

) IFC-New Products Group promoting renewable

 energy business (REEF, PVMTI, and SME)

) GEF/Bank Strategic Alliance for Renewables

 forming

) Dedicated trust funds support renewable and rural energy

 project preparation.

The World Bank Group is Gearing Up

 in Renewable Energy

Pre -fe as ib ility a nd F Pre -fe as ib ility a nd Fe a s ibility S tudie s e a s ibility S tudie s

Pe rform a nc e Tes ting Pe rform a nc e Tes ting

Te chnic al Te chnic al Spe cific a i tons a nd Sta nd a rds Spe cific a i tons a nd Sta nd a rds

Bus ines s Plan As s ista nc e Bus ines s Plan As s ista nc e

Le as t Cos t Re new able Ener gy Ana lys is Le as t Cos t Re new able Ener gy Ana lys is

Powe r Purc ha se Agre e me nts and 

Ta riffs

Powe r Purc ha se Agre e me nts and 

Ta riffs

Be s t Pra ctic e s Dis s em ina tion Be s t Pra ctic e s Dis s em ina tion

Proje ct D es ign and Pre par ation Proje ct D es ign and Pre par ation

The World Bank Group’s

Ren ewable E nergy Toolbox

The World Bank :

The India Renewable Energy Development Loan promotes the

commercialization of renewable resources technologies; creates

marketing and financing mechanisms for system sale and delivery;

encourages private-sector investment in small-scale power

generation; and promotes environmentally sound investments.

Small Hydro - To date, 22 small hydro power plants are in various

stages of implementation (125 MW) with another 30 MW in

development.

Wind - Thirteen wind farms (41 MW) have been financed.

900 MW of private wind capacity have been installed.

Solar Photovoltaics - The PV project pipeline consists of over

1200-kWp capacity valued at over US$13 million. Applications

include lighting, hybrid systems, and grid-connected pumping.

Total World Bank/GEF support for the renewable energy

components is US$141 million.

Investing in Renewable Energy for Rural Development

Projects in the pipeline: Latin America and

the Caribbean

Projects in the pipeline: Asia
) Approved

) Pipeline

) Both approved and

 in pipeline

) No projects

 Latin America/Caribbean:

· Projects approved or in pipeline in 13 countries

· Grid and off-grid projects involving PV,

 wind, hydro, biomass, and geothermal

 Africa:

·Renewable energy 

 projects/studies in 

 19 African countries

· Bank-approved renewable 

 energy activities underway 

 in 13 countries

 MNA:

· Projects approved or in pipeline

 in five countries

 Asia:

· Over US$1.2 billion in WB/GEF loans,

 credits, and grants in 12 countries

· Projects include renewable energy, efficiency

· Total project costs of US$2 - 3 billion

· Avoided fossil fuel capacity of 1.6 gigawatts

The World Bank : 

Investing in Renewable Energy for Rural Development
Long-term field presence and cultural sensitivity allows WI to respond to those we serve.

Hydro-power training in the Amazon, wind turbine in Indonesia, and PV used in Guatemala

Building a better world

Strategic in-country presence: The REPSO Network and Managers

The mix: developing market expertise plus knowledge of technologies

Sugar cane (bagasse) as a supplemental fuel; solar-powered pest control; wind-powered irrigation

Hydro power in the Philippines and wind-powered refrigerators inIndonesia

Winrock International

Winrock’s Renewable Energy Strategy focuses onfour areas of activity that will bring electricity to rural people whileestablishing long-term mechanisms to promote and support the useof renewable energy.1. Building Local Capacity: Local problems require local

solutions. WI is training local organizations so they can maintainand expand sustainable energy programs. WI also integratesrenewable power concepts with other rural developmentprograms—water and forest management, agricultural production,human resource development, rural employment and enterprisedevelopment—which will make rural regions healthy andeconomically productive places to live.

2. Innorural areacompanieTargeted apply theWinrock potential local partpotential improved 

3. Financing and Credit: WI works to mobilize capital to positive m

assist private developers prepare and structure privately-fundedRE projects. In 1991, WI helped launch EnvironmentalEnterprises Assistance Fund, which has attracted over $20M todeveloping world environmental businesses. WI works with theWorld Bank and other financial institutions to increase financialaccess to local businesses, NGOs, and end users. WI helpedestablish project funds to finance systems in the Philippines, India,Indonesia, and the Dominican Republic. These finance systemsprovide limited loan and equity funds. In national programs, WIand its International REPSO Network help establish revolvingloan funds with local NGOs and provided working capital to localrenewable energy businesses. At the village level, revolving REloan funds offer individuals credit to purchase equipment.

4. Markdevelopinrenewablprove thethem comin both emmarkets aIn 1995 serviceareas:• Agricul• Forestr integrat develop• Leader training  leaders, • Renewa income • Rural E Strength develop

The International REPSO Network: Renewable Energy

Project Support Offices (REPSOs) are part of WI’s strategy to helplocal people find appropriate and environmentally sustainablesolutions to their energy and income needs. Staffed with in-countryRE professionals, REPSOs are an effective vehicle for matching theglobal interests of the RE industry with the needs of ruralpopulations without electrical services in the developing world.REPSOs provide technical and financial support services to smallbusinesses, NGOs, communities, and others to promotedevelopment of renewable energy programs, equipment, andservices.The network functions as a conduit between local projectdevelopers and commercially proven technologies and services.It serves industry by identifying new markets and developmentopportunities, sharing information, and promoting local expertise.

Winrock International (WI), a private, nonprofit

institution, was formed in 1975 by friends of WinthropRockefeller. It merged in July 1985 with the InternationalAgriculture Development Service and the AgriculturalDevelopment Council to become the current WinrockInternational.With projects in over 40 countries, Winrock is a decentralizedglobal team of staff and volunteers dedicated to working withpeople to build a better world by increasing agriculturalproductivity and rural employment while protecting theenvironment.WI’s support comes from grants and contracts from national andinternational agencies, foundations, corporations, and gifts.Winrock is committed to ensuring that more of the world’sdevelopment resources are used to improve the lives of ruralpeople.

 Headquarters, Washington, D.C. Field offices and Key Program offices

REPSOMain PageAbout theREPSONetworkProjectsPublicationsMailing ListsRelated Sites

ImprovInforma

awarenesdifferent needs throsite, other including with indubetween dfor collabin USAIDwww.winhome pag

Brazil: Osvaldo Pereira

Philippines:Grace Yeneza

Central America: Ivan Azurdia

India: Shyamala Abeyratne Indonesia: Lolo Panggabean

The REPSO Network home page
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

The RSVP Program supplies information to both private and

public stakeholders through a World Wide Web site at

http://www.rsvp.nrel.gov. The information provided on the

Web site is regularly updated to maintain its usefulness and 

to help develop and foster working relationships with those

interested in village power projects around the world. 

Scope

The RSVP Web site provides a variety of information on topics

such as applications, contacts, and the development of renewable energy projects.

Database. The RSVP database has information on more than

140 international village power proj- ects from more than 

20 countries. The database is searchable by technology (e.g.,

wind, photovoltaics), application (e.g., lights, water), sector

(e.g., residential, commercial), and geographical region (see

Table 1). Each project entry contains information on economic,

financial, institutional, and technical aspects. Host country,

project participants, and lessons learned are also included.

Analytical models. The site contains descriptions of analytical

models developed and used by the RSVP program. The models

include the Hybrid Optimization Model for Electric Renewables

(HOMER), theVillage Power Optimization model for Renewables

(ViPOR), and Hybrid2.

Discussion forum. The forum site provides a platform for

sharing experiences and opinions on issues related to village

power through e-mail. Here you can find announcements of

new village power services, requests for information, requests

for proposals, Internet resources, project opportunities, and

updates on the RSVP Program. The discussions provide networking opportunities and address topics such as new technologies, social and cultural issues in village power, economics

and financing, and working with various development institutions. Past discussions can be viewed on the site's archives link.

Village Power event calendar. The calendar provides information on upcoming meetings and conferences.

Library. The site library has publications information from

NREL and other rural development organizations such as 

the World Bank and the National Rural Electric Cooperative

Association (NRECA). It also contains the RSVP team publications, masters theses and doctoral dissertations, and links 

to related Internet libraries.

The RSVP Web site also contains links to other Internet

resources on renewable energy, excerpts on issues in village

power, renewable energy contacts, and information on the

annual Village Power Conference.

Status and Planned Activities

Since its inception, the RSVP Web Site has undergone several

changes. The password-protected database has been replaced

with a registration page. This allows the site to be monitored

and evaluated to serve its users better. New users are not

required to have a password to see RSVP information. The

projects were converted into a Microsoft Access 97 Database,

allowing instan-taneous access to new information. An electronic system was established which allows project leaders 

to easily update their information. The Asian section of the

database also was expanded.

NREL plans to expand the database and continue to regularly

update the project information. Other activities include

increasing the number of site users, monitoring and updating

Web site links, and continuing to offer useful, easily accessible information.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Julie Cardinal

NREL/NWTC

Phone: (303) 384-7019

Fax: (303) 384-6901e-mail: julie_cardinal@nrel.gov

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NREL/FS-520-24632

Renewables for Sustainable Village Power (RSVP) Web Site

by Julie Cardinal 7/98
Application

Battery charging

Ice maker

Lights 

Mini grid

Refrigerator

Water pump

Battery charging

Computer

Lightrs

Power tools

Productive uses

Sewing machine

Stores

TV

Village power

Water pump

Technology 

*

4

Biogas Diesel Geothermal

Biomass

Combustion

Hybrid

System(s)

Micro

Hydro

1

1

1

1

1

1

4

Solar

Thermal Wind

1

1

1

3

3

2

5

Photovoltaics

1

6 

1

4

12

1

6

2

3

1

2

15

Grand

Total

2

1

6

1

1

5

3

1

8

2

1

3

1

1

1

3

24

Count of Region

Region 

Caribbean

Caribbean Total

Central America

Central America Total

Partial Matrix of RSVP Database Projects

Table 1. The matrix cross-tabulates projects’ technologies by their applications. For example, if a project has two

technologies listed and one application, it is counted twice and so forth.
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Province-by-province, Argentina is privatizing its electric power

sector using two process tracks: grid-connected service and

off-grid service. The Secretaria de Energia, in collaboration

with provincial authorities, has identified the maximum grid

extension region for the near future. All areas outside that

region are eligible for regulated nongrid-connected service.

The concession to provide this service as a regulated monopoly is being allocated through a competitive auction. Though

details differ in each province, a consistent part of the program is the maximum tariff that the private company can

charge. Two auctions in 1996 and a third, held in 1997, will

serve as the pilot for a nation- wide program funded by the

World Bank.

Scope

The National Renewable Energy Laboratory (NREL) has provided

technical assistance to the Argentine concessions program.

NREL staff helped in the design of the subsidy and tariff

structure and in estimating the costs of the program. The 

subsidy and tariff structure provides the concessionaire 

with a revenue stream sufficient to maintain a sustainable 

operation and gives the end-users appropriate incentives to

ensure efficient use of the electri-city. These two features are

often absent in rural electrification programs and result in

substantial burdens to the government and limit the expansion of rural electrification services. NREL, with assistance

from NRECA-Bolivia, reviewed the Secretaria de Energia's 

estimates of the expected costs of a business supplying 

solar home systems. They then made recommendations 

about the estimated costs and the methods used to calculate

the likely success of such an enterprise dependent on the 

size of the business. NREL also provided information on the

costs and applicability of hybrid powered, collective mini-grid

systems and on the design of systems for the electrification 

of rural schools. 

Status

Using different business plan scenarios, a metho-dology was

developed to identify the cost of service and the required 

tariff and subsidy as a function of the number of customers

the business might have. The methodology can be easily

adapted to different regions where the business costs and

infrastructure requirements may be different. It has been 

used in two provinces, Salta and Jujuy, where concessions

have already been granted. Proceeds from funding of $120

million from |the World Bank and the Global Environmental

Facility will allow additional provinces to participate in the

concession. Wind resource mapping is also being added to 

the methodology in the concession program's third province,

La Rioja.

Planned Activities

NREL continues to assist in the development and application

of the tariff methodology for additional provinces. The methodology may be used as a template in other regions and countries where renewable energy is being considered in rural

electrification systems. We are working with the private concessionaire on alternative system designs and wind resource

maps will be created for other provinces in the concession

program.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Peter Lilienthal

phone:303-384-7444

fax: (303) 384-7411

e-mail: peter_lilienthal@nrel.gov

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NREL/FS-520-24627

Argentina: Concession for Rural Electrification Services

by Peter Lilienthal 7/98
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

The Mexico Renewable Energy Program helps expand the use

of renewable energy, primarily PV and wind, in rural, off-grid

applications. The program is co-sponsored by the U.S. Department of Energy (DOE) and USAID and managed by Sandia

National Laboratories, with the National Renewable Energy

Laboratory (NREL) providing technical assistance for wind 

projects. The project approach emphasizes sustainability 

and the development of in-country institutional capacity.

The NREL program team is working with Mexican organizations

within established and funded programs to incorporate the

use of renewable energy technologies where they are the best

technical and economic solution. The team provides training

and technical assistance to the pilot project staff to help to

institutionalize the use of renewable energy technologies 

in Mexico.

Scope

Program goals are to increase the demand for the appropriate

and sustainable use of renewable energy technologies, thereby

expanding markets for the U.S. renewable energy industry,

and to increase the use of renewable energy technologies as 

a mechanism for combating global climate change, specifically

by reducing greenhouse gas emissions.

More than 200 photovoltaic systems and several wind energy

systems have already been installed, including a 10-kW winddiesel system for an eco- tourism resort. Significant near-term

replication of these projects is under way with the Fideicomiso

de Riesgo Compartido (FIRCO, a federal, shared-risk trust fund

that is under Mexico's agriculture department), the major program partner. FIRCO is working to set in motion one of Mexico's

largest agricultural development programs, and Sandia and

NREL are providing technical assistance as FIRCO begins to

install hundreds of renewable energy projects (mostly for

water pumping).

The Mexico program is divided into specificprogram areas and

crosscutting activities that include work with FIRCO at both

the state and national levels. The program also has projects

with several state agencies in Chihuahua, Sonora, Baja California Sur, Quintana Roo, Oaxaca, Veracruz, and others. In

addition, cooperative projects are underway with Conservation International, the Nature Conservancy, World Wildlife

Fund, and several local organizations to incorporate renewable energy into ongoing activities for protected-areas management in Mexico. The program's crosscutting activities

include solar and wind resource assessment, training, technical and economic analysis, financing mechanisms, industry

interactions, project monitoring and evaluation, and environmental assessments.

NREL's approach is to emphasize sustainability and infrastructure by

• working with established Mexican organizations

• working within established and funded programs

• providing training in technologies, applications, and project 

implementation

• providing technical assistance and cost-shared funding for 

pilot projects.

Emphasis is on productive uses such as water pumping for

livestock or crop irrigation, lighting for commercial or business activities, and ecotourism. Such uses 

• provide economic and social benefits

• have a high degree of sustainability and replicability 

because they provide a mechanism for paying for renewable

energy systems

• compete with subsidized renewable energy programs in 

Mexico. 

NREL Activities

NREL is helping Mexico in site identification and providing

technical assistance to their wind project teams.

Oaxaca Workshop and 1.5-kW Turbine Instal-lation. NREL

participated in the Mexico/AID Renewable Energy Workshop

NREL Wind Technical Assistance to Mexico Renewable Energy

Program 

by David Corbus 7/98
held in Oaxaca in August of 1996. Besides presenting material

on wind-powered water pumping and hybrid system design,

NREL trained others in the installation of the 1.5-kW windpowered water pumping system.

10-kW Costa de Cocos Wind-diesel Installation. The work

at Costa de Cocos consisted of prefeasibility and economic

analyses, preliminary design, preparation of bid specifications, evaluation of bids, coordination between the vendor

and owner on project implementation, participation in 

project implementation, and follow-up evaluation of the 

project, including analysis of monitoring data. 

San Juanico Analysis. Working closely with Arizona Public

Service (APS), NREL has done extensive economic and performance modeling of a proposed hybrid system for the village

of San Juanico. Their activities include: tariff structure definition; assessments of ability to pay; loads analysis; site visits

and dialogue with villagers; preliminary design studies based

on Commission Federal de Electricidad (CFE) and APS cost

requirements; extensive meetings with APS and CFE and other

interested parties; and time-series modeling of system performance using estimated hourly loads and hourly anemo-meter

data from the site. The installation of this projeact should be

complete by January 1999.

Wind and Solar Resource Assessment. The NREL resource

assessment team analyzed both wind and solar data for

Mexico and is producing a catalog of Mexico wind data from

various sources. They also are producing wind resource maps

for several regional areas. Two important activities were the

acquisition of digital terrain data for all of Mexico and the

analysis of satellite data on ocean wind speeds near the Gulf,

Caribbean, and Pacific coasts. 

Besides these activities, NREL conducted assessments of a

wind/PV/diesel hybrid system in Quintana Roo for the fishing

lodge of Casa Blanca, analysis of several wind-powered water

pumping sites in Quintana Roo, and analysis of potential 

protected-areas management projects in the states of Quintana

Roo and Yucatan.

Planned Activities

San Juanico Hybrid System. NREL will continue technical

analysis for the San Juanico Hybrid power project. The work

will include technical system design assistance and design of

a monitoring system for the project. Technical Assistance in

the Yucatan. NREL is providing technical assistance to several

small wind projects in the Yucatan Peninsula, including small

wind/PV system installations at the Isla Contoy and Pez Maya

nature reserves.

Replication of FIRCO Water Pumping Activities. NREL will

continue to support the FIRCO water pumping projects with

the goal of replicating wind-powered water pumping systems

in an area with a good, homogenous wind resource such 

as Oaxaca. 

Wind Resource Assessment. NREL will produce a catalog of

all wind monitoring activities under the program. Researchers

have completed a set of detailed, computerized wind resource

maps of two regions of Mexico: the Yucatan Peninsula and

Baja California Sur. These maps were generated using automated wind mapping systems.

NREL will continue technical assessments, prefeasibility analysis, and site visits for wind projects that pass initial screening

by project team members in the field. Several small wind projects are being evaluated in the Yucatan Peninsula.

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Larry Flowers

(303) 384-6910

David Corbus

(303) 384-6966

Sandia Contact

Charlie Hanley

505-844-4435

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RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Xcalak is coastal fishing village located at the southern tip of

the Yucatan peninsula in Eastern Mexico. The village has

about 300 residents in 60 homes that have never been connected to the national utility grid because the small size and

remoteness of the village made grid extension too expensive.

However, there have been attempts to bring electricity to

Xcalak. In fact, it has been electrified five times-four times

with diesel-electric generators and the last time with a hybrid

wind and photovoltaic system. 

In 1992, after nearly a decade without diesel power, Xcalak

received a 71-kW renewable energy power system consisting

of six wind turbines and a photovoltaic array. Other components in the hybrid system included a 400-kWh battery bank

and a 40-kW inverter. The system was designed around a 

220-V direct current (DC) electrical bus. Condumex S.A.

installed the system. Condumex, located in Mexico City, has

been the preeminent supplier of solar energy equipment in

Mexico for many years. The new system was funded by the

State of Quintana Roo and the federal PRONASOL rural development program.

The Xcalak hybrid system was energized in August 1992 and

has been producing between 120 kWh and 250 kWh of AC

power per day, depending on the wind resource. Any electricity

generated by the system that is not needed satisfy the immediate electrical load is stored in the battery bank for use during times of low wind and solar output. System performance

has been slightly better than expected, primarily because the

wind resource has been greater than was originally predicted.

However, because the village load has grown substantially the

system often cannot meet the demand. The Xcalak system

performance is monitored by the Southwest Technology

Development Institute (SWTDI) and the National Renewable

Energy Laboratory (NREL).

Over the last five years, several problems have surfaced. Several

wind turbine alternators have been replaced and the PV array

has been out of operation twice due to regulator and wiring

failures. Problems with the inverter have caused prolonged

system downtime. Many of these technical problems were 

not severe, however, and could have been fixed in a timely

manner had there been an appropriate infrastructure in place

for system maintenance. Salt corrosion has proven a problem

on the wind turbines, necessitating the replacement of turbine

parts and tower guy wires. 

The Xcalak project has taught us some important institutional

lessons, principally things to avoid. The system was installed

before a local electrifi-cation committee (patronate) was formed

leaving the ownership and responsibility for the system largely undefined. The Governor of Quintana Roo, who championed

the project, was voted out of office in 1993. The utility company was never involved with the project and the locals have

lacked the cohesion to organize themselves into a regulating

body. In addition, the users were not originally charged for

the electricity, which naturally caused consumption to balloon.

There has been difficulty in getting the users to pay once a

method for charging them was implemented.

Status

NREL began analysis of the system performance data in 1994

and has provided technical assistance to the project since

then on an ad-hoc basis. To date, there have been no institutional changes with the Xcalak project, hence, the system is 

in danger of falling into disrepair. Technical challenges,

although significant, are not the primary problem. Lack of

system administration is the major impediment.

In August of 1997, a Canadian contract was awarded to SWTDI

to investigate the institutional and technical problems posed

by the project. Since then, with assistance from NREL, Sandia

National Laboratories, the University of Quintana Roo, and

Bergey Windpower Company, the turbine alternators have

been repaired and significant maintenance performed on the

wind turbines. Solutions to the institutional problems are

being pursued under the SWTDI contract, including the installation of electrical meters, tariff analysis and implementation,

repair of the distribution grid, and formation of a local administrative body that will be responsible for system administration. 

Planned Activities

NREL and SWTDI will continue to monitor the performance of

the system and analyze the data, particularly noting that the

battery in the system is already five years old. 

Hybrid Power System for Xcalak, Mexico 

by David Corbus 7/98
Contacts

Web site: http://www.rsvp.nrel.gov

Larry Flowers

NREL/NWTC

phone: (303) 384-6910

fax: (303) 384-6901

e-mail: larry_flowers@nrel.gov

Dave Corbus

NREL/NWTC

phone: (303) 384-6966

fax: (303) 384 6901

e-mail: david_corbus@nrel.gov

Kevin Rackstraw

AWEA 

phone: (202) 383-2500.

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NREL/FS-520-24637
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Getting their electrical service by charging 12-volt, 50–100 Ah

batteries from diesel grids is common for residents in some

areas of the developing world. However, a few examples of

renewable energy-powered battery charging stations also 

exist in such areas. For example, GTZ installed a photovoltaic

(PV) battery charging station in the Philippines and NREL is

deploying a PV-powered battery charging station in India.

Transport of the batteries to and from the household is either

the responsibility of the resident or a service provided by the

station. The batteries can be individually owned, or leased

from the station. The batteries are charged either on a set

schedule, or as the batteries need a recharge. While such

logistical variables provide a challenge, battery charging 

stations have the major advantage that they can bring affordable electric service to very low income populations. 

Status

NREL has studied the institutional arrangements for battery

charging stations, and conducted research, both design and

testing, on their architecture and controls. As part of the

deployment of a PV-powered battery charging station in 

India, NREL has tested a PV powered battery charging 

station (identical to the one in India) provided by Applied

Power Corporation. Initial testinghas been completed and

results are available (see contacts).

Significant research has also been conducted on wind power

for battery charging stations. Because of the variable voltage

DC bus typical of small wind turbines, the design of a windpowered battery charging station can be complex. Yet, there 

is potentially a greater economy of scale for a wind-powered

station when compared with a PV station.

Testing at NREL on wind-powered battery charging stations has

focused on a low cost method for charging 12-volt, deep cycle

batteries from a small wind turbine. Three alternatives were

evaluated. The first option has four batteries, with a common

state-of-charge, in series with many strings in parallel and

voltage control for the entire DC bus. The second has individual

charging control for each 12-volt battery using a DC to DC

converter/charger for each battery. The third option is AC

minigrid system comprising batteries and an inverter under

which the battery charging load is only one of many various

village loads on the system.

NREL has completed feasibility testing of a wind-powered battery charging station using the second alternative and has

awarded a contract to Ascension Technology for the production, design, and fabrication of a commercial prototype based

on the testing.

Issues with wind-powered battery charging 

stations 

NREL held an online Internet discussion with researchers and

renewable experts worldwide. The discussion dealt with several

key issues including the operational, technical, financial, environmental, and safety aspects of battery charging stations. 

In response to the operations issues, the discussion group

proposed that batteries can either be owned by the station

and leased to the user or be owned by the user. The lease 

system has several benefits:

• standardization of the batteries

• cost leverage from bulk purchase

• weekly maintenance at a station.

On the other hand, an individual ownership system has one,

very key, benefit. The individual is responsible for their own

battery maintenance and, therefore, less likely to over discharge the battery.

The group also expressed concern that batteries could be easily

mishandled if the end user was responsible for transport. Such

mishandling could result in shortened battery life and possible battery acid spills resulting in personal injury. An alternative is to have a transportation service such as a donkey cart,

a truck, or another mode of local transportation. While this

option is more expensive, it may be more economical in the

long run because of better battery handling, battery throughput control, and increased business generated by a larger 

service territory.

Battery Charging Stations

by David Corbus 7/98
The environmental and safety issues revolved around recycling and packaging. Recycling is a vital component of all 

battery programs. A station can probably facilitate recycling

as it is a single facility to collect batteries and deal in bulk

with battery recyclers. Safe packaging of batteries has started

in South Africa and Brazil. Replication will be necessary for

new battery charging schemes.

Concerning financing, the group response suggested a centralized business scenario. A centralized business can provide

credit history and is more likely to be approved for a loan 

than several hundred individual PV users; cost recovery is

with a single point of contact. High up-front costs are the 

limiting factor for complete solar home systems in some 

communities. In these cases battery charging stations hold 

a critical advantage because there is low or no 

capital expenditure for the end user.

Planned Activities

Activities for the future include testing of a commercial prototype battery charging station built by Ascension Technology

and installed at the National Wind Technology Center.

References

Gevorgian, V.; Corbus, D.A.; Drouilhet, S.; Holz, R.; Thomas, K.E.

(1998). “Modeling, Testing and Economic Analysis of WindElectric Battery Charging Station.” Presented at Windpower '98,

27 April–1 May 1998, Bakersfield, California. NREL/CP-500-

24920. Golden, CO: National Renewable Energy Laboratory.

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Dave Corbus

NREL/NWTC

phone: (303) 384-6966

e-mail: david_corbus@nrel.gov

Byron Stafford

phone: (303) 384-6426

e-mail: byron_stafford@nrel.gov

Produced by the National Renewable Energy Laboratory, a U.S.

Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-520-24628
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

In the northern areas of Russia (including the Kola peninsula,

the Arkhangelsk region, the Chukotka peninsula, and other

locations), a number of lighthouses, small industrial villages,

and meteorological station facilities receive electric power

from one of two sources. An existing grid serves a portion 

of the area and small, local diesel power plants serve the

remaining locations. In some cases, the reliability of the grid

service is deemed unacceptable and local independent power

stations are desired. As for the small diesel plants, diesel 

fuel prices in northern Russia range from about $0.36/liter 

to $1.30/liter, and the demand for electricity often exceeds

available fuel supplies.

These conventional power issues are helping to open up a

market for renewable energy sources. The wind resource in

northern Russia is very good, particularly in the Murmansk

and Ark-hangelsk regions. The estimates of the annual average wind speed for those regions range from 7 to 9.5 m/s 

for the coastal areas and from 4 to 7 m/s inland. Most of 

the territories lie near or north of the Arctic Circle, so icy 

conditions and permafrost ground are concerns.

Scope

The United States Agency for International Development (USAID)

has provided $1.4M for the purchase of 40 Bergey Windpower

wind turbines (10 rated at 1.5 kW and 30 rated at 10 kW), 

batteries, solid-state power converters, and other equipment

for retrofitting hybrid systems with existing diesel plants.

Candidate project sites were selected on the basis of the 

infra-structure necessary to maintain the systems, the wind

resource at the site, the fuel price and availability at the site,

and a variety of applications to serve as pilot projects. The

U.S. team provided systems designs, equipment and training

of local technicians in installation and maintenance.

Status

Based on a preliminary assessment of loads, wind speeds, and

fuel prices, analysis at National Renewable Energy Laboratory

(NREL) indicated that optimally cost-effective hybrid retrofits 

for roughly six villages and ten smaller projects could be

fashioned from the set of equipment provided with the 

USAID funds. During the summer of 1997, two Russian 

engineers spent two months with the NREL team using the

Hybrid2 simulation model for the analysis of hybrid systems

for northern Russia. Upon their return to Russia, they 

became key members of a Russian team that consists of 

specialists representing the Russian Ministry of Fuels and

Energy, the Federal Center of Small and Nontraditional Energy,

and the Intersolarcenter.

Two hybrid systems, both in the Arkhangelsk region (two 10-kW

turbines at Krasnoe village and one 10-kW turbine at Bolshie

Kozli village), were installed from September to December

1997. Two more 10-kW turbines are being installed in the

Arkhangelsk region at Megra village, four 10-kW turbines 

are going in at Chukotka and sites for four 10-kW turbines 

are under preparation in the Murmansk region.

The Bergey team provided a two-week installation and operations and maintenance training seminar for local engineers

and technicians in October and November of 1997. Planned

activities for the project team and partners include continuing

to gather information, perform analysis and system design,

and install and monitor systems.

Team/Partners

• Russian Ministry of Fuels and Energy

• Intersolarcenter

• Federal Center of Small and Non-traditional Energy

• Darup Associates

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Ken Touryan

Phone: (303) 275-3009

Fax: (303) 275-3040

e-mail: ken_touryan@nrel.gov

Hybrid Power Systems for Russia's Northern Territories

by C. Dennis Barley and Vahan Gevorgian 12/97
Larry Flowers

phone: (303) 384-6910

fax: (303) 384-6901

e-mail: lawrence_flowers@nrel.gov

Produced by the National Renewable Energy Laboratory, a U.S.

Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-510-24199

This graph illustrates a study of the least-cost sizing of a wind turbine array for a

sample small village, based on preliminary data and analysis, with fuel price and

wind speed as parameters. Similar studies were conducted for a number of 

villages and meteorological stations.

Gavrilovo (WTG Installation, 6% Discount Rate)

12345678

Number of Excel WTGs

Cost of energy ($/kWh)

$0.47/lit 6.5 m/s

$0.47/lit 7.5 m/s

$0.47/lit 8.5 m/s

$0.47/lit 9.5 m/s

$0.62/lit 6.5 m/s

$0.62/lit 7.5 m/s

$0.62/lit 8.5 m/s

$0.62/lit 9.5 m/s

0.0

0.1

0.2

0.3

0.4
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

In 1996, the government of the Inner Mongolia Autonomous

Region of China and the U.S. Depart- ment of Energy (DOE)

embarked upon a plan to use renewable energy systems in

electrifying remote areas of China. The first part of the project

involved a policy and case study analysis of existing household and village power systems, and was completed in early

1996. The second part of the plan consists of pilot projects

for the Autonomous Region of Inner Mongolia. The Inner

Mongolian government, the Chinese Academy of Sciences, 

the University of Delaware's Center for Energy and Environmental Policy (CEEP), and the National Renewable Energy

Laboratory (NREL) have joined forces to design and implement these demonstration projects.

Scope

Phase I of the implementation will involve the distribution of

240 small wind/photovoltaic (PV) systems for household use.

The systems will be located in two counties that are rich in

wind and solar resources: Suniteyou (Xisu) and Dongwu

Zhumuqin. Both counties will be equipped with resource 

monitoring stations, and several of the household systems

will be monitored and analyzed for technical performance.

The project will be cost shared by DOE and the Chinese State

Science and Technology Commission (SSTC). The systems,

which cost about $2,000 each, will be paid for by the villagers

or through a revolving loan fund administered by the Inner

Mongolian government. Systems composed of U.S. equipment,

Chinese equipment, and combinations of the two will be featured in the pilot project.

Status

Analyses were conducted at CEEP and at NREL to identify the

most cost-effective household system designs for each of the

two counties.Compo- nents of the analyses included identifying load profiles, assessing the wind and solar resources, 

collecting price and performance specifications for U.S. and

Chinese components, running sophisticated computer models,

and evaluating system designs for cost of energy (the system

cost per kWh of energy delivered to the load) and percentage

of unmet loads. The analyses showed that combinations of

wind and PV are the most cost-effective designs for the household systems because the seasonal profiles of wind speed and

solar radiation are complementary for the locations. Further

analysis is underway to determine cost-effective designs for

entire village power systems in Inner Mongolia.

Household Wind/PV Hybrid Systems for Inner Mongolia, China

by Dennis Barley 7/98

0.55

0.60

0.65

0.70

0.75

0.80

0.85

0.90

0 5 10 15 20 25

Unmet load (%)

COE ($/kWh)

Wind speed = 4.9 m/s

A B

C

D

E

F

Wind Solar Battery

Case (W) (W) (kWh) 

A 400 0 1.26

B 400 0 2.52

C 400 50 3.78 

D 400 50 6.30

E 400 150 6.30

F 400 200 7.56

Several possible designs are compared on the basis of unmet load and cost of energy.
Planned Activities

In 1998, a pilot wind/photovoltaic hybrid system project will

be initiated with the installation of at least 240 remote household systems. In addition, resource data will be collected in

several additional counties in Inner Mongolia. The data will 

be used to assess the potential of wind, PV and hybrid systems for serving remote household and village power needs

on a larger scale.

Team/Partners

• NREL/DOE

• The Inner Mongolian government

• Chinese Academy of Sciences

• University of Delaware's CEEP

NREL Contact

Web site: http://www.rsvp.nrel.gov

Bill Wallace

phone: (303) 384-6476

fax: (303) 384-6490 

e-mail: bill_wallace@nrel.gov

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Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-520-24636
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Approximately 20% of South Africa's rural population is not

expected to get utility grid electricity for at least the next 

20 years. Many rural South Africans, similar to other rural 

markets in the developing world, live in sparsely populated,

widely dispersed villages with small load requirements.

Modular, renewable energy power generation is a costeffective way to provide clean, affordable, and long lasting

low-load electricity to such markets. The South African government recognizes the importance of renewable energy 

technologies and the capabilities of the photovoltaic (PV)

industry in South Africa. The government has approved the

use of PV for the electrification of 2000 clinics and 16,800

schools serving this population. Using PV systems to electrify

for lighting, television/radio, and light manufacturing in an

estimated 2.5 million homes and 100,000 small businesses is

accepted as complementary and integral the extensive South

African grid-electrification program. These efforts, however,

must overcome key market barriers such as the availability 

of flexible, small scale financing for the rural populace, and

establishing an adequate delivery, installation, and maintenance infrastructure to lower the transaction costs associated

with dispersed customer bases.

Through the Energy for Development Directorate of the South

African Department of Minerals and Energy (DME), approaches

will be developed for bringing off-grid sustainable electricity

to the rural population. The DME, along with the United States

and other international partners, is launching a pilot program

that will install at least 2500 photovoltaic systems in rural

South Africa. Under support of the U.S. Department of Energy

(DOE) and the U.S./South Africa Binational Commission, the

National Rural Electric Cooperative Association (NRECA) is

bringing their six decades of relevant experience to the pilot.

Technical and financial consultation is being provided by the

DOE national laboratories.

The Energy for Development Directorate of the DME has a broad

portfolio of activities beyond the electrification of rural South

Africa. Their other efforts include rural water pumping systems, biomass initiatives, resource assessment, energy conscious low-income housing, education campaigns and hybrid

power systems for villages and farms. The latter are being

pursued through joint efforts of NREL and the Energy for

Develop-ment Research Center at the University of Capetown.

The project partners will conduct system modeling and create

a design manual that will complement the Remote Area Power

Supply Manual Series previously released by the DME.

The major challenge to bringing small scale, renewable energy

electrification to rural South Africa is the creation of sustainable delivery channels for information, hardware, and financing.

Four basic delivery models for the pilot project have been

defined. Two models, the ESKOM Model and the CommunityBased Model, will draw heavily on the infrastructure already

created by ESKOM (rural schools) and the Independent Development Trust, IDT, (rural clinics). The two models are expected

to provide guidance for the bulk of the first installations. Two

others, the Industry-Led Model and Solar Store Model, are

largely untried, but have motivated industry to submit several

unsolicited proposals for pilot operations. The DOE-supported

Mobile Demon-stration Unit will house consumer education 

and training. The unit was loaded onto a locally manufactured

utility trailer that can be towed by a small pickup truck and

will serve as part of the community outreach and consumer 

education efforts of the pilot project.

Efficient distribution channels for the delivery of complementary energy supplies such as PV systems for electricity and

liquefied petroleum gas for cooking are being considered for

inclusion in pilot efforts in several provinces. A community

workshop, held in early July 1997 in Mpumalanga Province,

identified many outstanding issues and generated considerable enthusiasm for community participation, and entrepreneurial development. Residents were also eager to learn 

about the opportunities to reduce their reliance on wood 

and kerosene. 

Initial coordination of training standards was the subject of 

a September 1997 workshop conducted by the Institute of

Sustainable Power. Under DME leadership, with the support 

of the Development Bank of Southern Africa and the U.S. Information Service, and in cooperation with the South African

Department of Education and the Electrical Contractors Board,

the initiative hopes to facilitate accreditation of training

experts and certification for photovoltaic system professionals.

The initial availability of risk reduction financing through the

planned Electrification Fund is key to achieving sustainable

rural electrification in South Africa. Also important is the

Rural Electrification in South Africa 

by Doug Arent 1/98
anticipated support for PV electrification from the Electricity

Policy Coordinating Committee. The committee believes

renewable power options are economically superior alternatives to line extensions for meeting much of the 450,000

annual connections quota. It is estimated that the rural electrification market lifetime will last 20 years, and the total

value of installed hardware will be approximately $1 billion.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Roger Taylor

Phone: (303) 384-7389

e-mail: roger_taylor@nrel.gov

South Africa Contact

Department of Minerals and Energy

Republic of South Africa

Energy for Development Directorate

Private Bag x59

Pretoria 0001

South Africa

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NREL/FS-520-24633
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

With the increasing need for electricity generation in the

developing world, the market potential for renewable-based

hybrid power systems is emerging. In order to address this

emerging market, an analysis tool was needed by industry,

researchers, and development institutions to accurately 

model the performance and economics of alternative hybrid

designs. This analysis tool would have to have enough versatility to model the many system locations, widely varying

hardware configurations, and differing control options for

potential hybrid power systems. In response to this need, 

the Hybrid2 software was developed. Hybrid2 is a time-series/

probabilistic model that uses time-series resource and load

information, combined with statistical analysis, and manufacturers' data for hybrid system equipment to accurately predict

the performance and cost of hybrid power systems. Hybrid2

allows direct comparison of many different renewable and

non-renewable power system designs. This is completed in 

a user-friendly format where off-the-shelf equipment is incorporated into potential power systems.

Hybrid2 was released in June of 1996.

Scope

To define the performance of a variety of wind/ diesel and

hybrid power system configurations, the University of Massachusetts and the National Renewable Energy Laboratory (NREL)

developed the Hybrid2 software. The Hybrid2 code can model

many combinations of wind turbines, photovoltaic arrays,

diesel generators, power converters, and battery storage, 

both in AC, DC, or two-bus systems. Hybrid2 also allows for

more than 100 different dispatch configurations with multiple

diesel generators, renewable sources, and battery storage. 

The model has an easy to use graphical interface, an in-depth

library to facilitate system design, and a detailed glossary 

of frequently used terms to assist users who are not familiar

with hybrid power system terminology. The code also includes

a comprehensive economics package.

Status 

The Hybrid2 code was released in June at the 1996 American

Wind Energy Association Wind-Power Conference in Denver,

Colorado. The software has undergone numerous updates 

and is available to the general public for a $100 reproduction

charge. The University of Massachusetts is providing support

for software users and has set up a homepage where more

information can be located. The software is used extensively

at NREL and approximately 150 copies have been distributed

worldwide.

The Hybrid2 software will be undergoing continuous upgrades

over the next year with planned releases of updated versions

in June and Decem-ber of this year. Possible upgrades include

the addition of a synchronous condenser, simplified system

dispatching, a user-defined control offset and a simple prefilter for wind and solar resource data.

Team Participants

• The University of Massachusetts

• NREL

Hybrid2, Hybrid Power System Simulation Software

by Ian Baring-Gould 12/97
NREL Contact

Web site: http://www.rsvp.nrel.gov

Ian Baring-Gould

NREL/NWTC

phone: (303) 384-7021

fax: (303) 384-6901

e-mail: Ian_baring-gould@nrel.gov

Hybrid2 software can model many combinations of equipment in AC, DC, or two-bus systems.

Produced by the National Renewable Energy Laboratory, a U.S.

Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-510-24197
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Small wind turbine suppliers in the United States and several

international development agencies have expressed a need for

a reliable and cost-effective wind-powered icemaking system.

The need is driven by the demand for ice in remote fishing

villages. Often, such villages in developing countries do not

have access to grid power. With a reliable supply of ice to

refrigerate their catch, fishermen in these villages would

extend the market for their fish, reduce spoilage, and 

increase the quality of their delivered product.

Scope

To address the need of village fishermen, the National Renewable Energy Laboratory (NREL) decided to investigate the

approach of using a commercial icemaker directly connected 

to the electrical output of a small variable-speed wind turbine

generator. This approach was taken because it promised to be

simpler and more cost effective than a system employing batteries and an inverter (to supply conventional AC power). The

electric power supplied to the icemaker would vary in voltage

and frequency as the wind speed varied. There would be no

other energy storage in the system because ice is itself a 

storage medium. Ice would only be produced when there 

was sufficient wind power available.

Status

In the first phase of the project, NREL demonstrated variable

frequency operation of a standard commercial icemaker connected to a Bergey wind turbine. While the icemaker (a Scotsman) produced ice over a range of electrical frequency and

voltage, several operational problems were encountered.

Particular difficulty was encountered in starting the compressor motor with the relatively weak (compared with a standard

utility grid) wind turbine generator. NREL developed a computer model of the electromechanical system, looking at both

the steady state and dynamic operation of the system, to 

get a thorough understanding of the system characteristics,

including the start-up problem. Researchers then conducted

bench-scale tests to validate the model and to prove the 

predicted effectiveness of series capacitors in increasing 

the starting capability of the compressor motor.

In the second phase of the project, NREL tested a Northstar

icemaker, powered by a 10-kW wind turbine alternator, driven

by a dynamometer. The Northstar icemaker was chosen

because it appeared to have the robustness necessary to 

provide reliable service in a remote fishing village environment. It also can make ice from seawater (unlike the Scotsman), which eliminates the need for a fresh water supply. 

The icemaker start-ups were monitored at various combinations of alternator frequencies and capacitor size. Steadystate measurements were taken over the entire range of 

operating frequencies to determine the power vs. frequency

and ice production rate vs. frequency characteristics of the

system. The measurements, combined with the known wind

turbine performance, were used to determine ice production

vs. wind-speed for the system.

Unfortunately, the Northstar icemaker testing revealed its own

set of operational problems associated with variable-speed

operation. The problems included mechanical resonances, 

control malfunctions, poor spray jet performance, and attenuated ice production rate at the higher operating frequencies.

Taken together, the resolution of these problems would call

for a major redesign of the icemaker. The U.S. Department 

of Energy issued a Small Business Inno-vation Research (SBIR)

request that included wind-electric icemaking as a development category. Three awards are anticipated in the category.

Thorough documentation of this project can be found in, 

"An Investigation of Wind-Electric Icemaking: Analysis and

Dynomometer Testing," NREL technical report no. TP-500-

24010, and in, "Wind-Electric Icemaking Investigation," NREL

conference paper no. CP-500-24662. NREL is currently soliciting interest and proposals from U.S. icemaker manufacturers

for continuing this work.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Steve Drouilhet

phone: (303) 384-6909

fax: (303) 384-6901

e-mail: steve_drouilhet@nrel.gov

Wind-Electric Icemaking System Development 

by Steve Drouilhet 7/98
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NREL/FS-520-24631
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

In a remote Alaskan village, wind turbines and back-up diesel

generators can hypothetically provide electricity for lighting,

heating, and hot water on a short winter day. This is one of

many hybrid power systems researchers can simulate at the

National Renewable Energy Laboratory's (NREL's) Hybrid 

Power Test Bed (HPTB) at the National Wind Technology 

Center (NWTC).

Hybrid power systems combine multiple power sources such

as wind turbines, photovoltaic (PV) arrays, diesel generators,

and battery storage systems. They typically are used in

remote areas, away from major electric grids. 

Scope

The HPTB is designed to assist the U.S. industry in developing

and testing hybrid power generation systems. Using simulated

village loads, researchers can evaluate the interaction of hybrid

power systems under realistic conditions. Design engineers

are able to work through actual problems the system might

encounter in the field.

The test bed allows engineers to evaluate system performance,

cost effectiveness, and reliability using real or simulated solar

and wind energy resources. Simulated energy resources allow

designers to repeat experiments as they improve system

designs. This feature is important for developing new 

components, advanced hybrid systems, and dispatch and 

control systems. 

U.S. companies can use the HPTB to train customers from other

countries. By providing technical assistance to potential users,

the NWTC encourages the growth of international markets for

the U.S. wind industry.

Test Bed Capabilities and Features

Engineers can evaluate the moment-by-moment dynamics of

hybrid power system operation, gather data on long-term 

performance,or demonstrate innovative design concepts with

the HPTB. High-speed data acquisition equipment monitors

power quality, harmonic distortion, and electrical transients.

A village load simulator (a load bank with resistive and inductive elements) can create power factors down to 0.5, allowing 

NREL's Hybrid Power Test Bed

by Jim Green 12/97

100 kW village

load simulator

120 VDC, 180 kWh

battery bank

24 VDC, 16 kWh

battery bank

Productive uses

Conductors to Hybrid Power Systems

20 kW

VariableSpeed

Experiment

Transformer

10 kW

Bergey Excel

Wind Turbine

Transformer

50 kW

AOC 15/50

Wind Turbine

Inverter

Transformer

Conductors to Wind Turbine Sites

10 kW PV

(future)

Switch

Panel

(3 AC buses)

(3 DC buses)

20 kW DC renewable

energy simulator

75 kW AC renewable

energy simulator

60 kW DC grid simulators (diesel gensets)

New World

Village

Power

Hybrid

Power

Systems

Deering

Wind/Diesel

System

#3

(TBD)

Control building and

auxiliary loads

Transformer 120/480 VAC

13.2 kV Service

Components of NREL’s Hybrid Power Test Bed.
test engineers to evaluate system operation under severe conditions that may be encountered in real operations. Engineers

can also investigate the power system's dynamic response to

sudden load changes and to conditions of phase imbalance or

loss of phase.

Test bed engineers can evaluate the long-term performance of

a hybrid power system, including its energy delivery (in kilowatt-hours), and diesel fuel consumption. They can monitor

wind speed, insolation, and the performance of battery energy

storage. They can characterize system performance under a

range of operating conditions, evaluate alarms, emergency

shutdown procedures, and other critical functions.

The research test bed provides a minimal risk environment

for developing, testing, and evaluating new concepts when

compared to proving them in the field at remote locations.

New power conversion devices, emerging energy storage 

technologies, prototype control systems, and innovative 

system architectures are examples of concepts that can be

evaluated using the HPTB.

The HPTB has a number of unique features. These features

include the ability to test up to three hybrid power systems

simultaneously, use either real or simulated renewable energy

sources, simulate a local electric grid, test with real or simulated village loads, and test wind turbine systems producing

direct or alternating current (DC or AC).

A custom-designed switch panel with 3 AC and 3 DC buses

gives the test bed the flexibility to connect or disconnect 

various system components for tailored testing programs. 

The switch panel can connect selected components, with 

combined capacities of up to 100 kW onto common power

buses. Engineers can rapidly change testing configurations 

by opening and closing a few switches.

Simulated renewable energy sources allow engineers to conduct

repeatable testing. An induction generator functions as a 75-kW

AC source simulator. A DC source simulator is planned for

future and will be a solid-state device that provides up to 

20 kW of reproducible DC power.

Two 60-kW diesel generator sets are available for use in hybrid

systems under test. They may also serve as grid simulators,

allowing researchers to test a hybrid power system's ability 

to synchronize its power output and connect with an existing

small grid. 

Renewable energy technologies at the facility include three

wind turbines, rated from 10 to 50 kW. A photovoltaic array

rated between 10 and 20 kW is planned. The NWTC's good

solar and wind resources allow a full range of power- system

testing under normal operating conditions.

The test bed incorporates a 100-kW village load simulator. 

The computer-controlled simulator mimics typical electric

loads for a small village. The test bed also has the flexibility

to incorporate real village loads such as power tools, lighting

systems, water pumps, or icemakers into its evaluations.

The HPTB includes a PC-based control and data acquisition

system with a graphical interface in LabVIEW8.

Hybrid Power Test Bed Equipment

Component Rating

AOC 15/50 wind turbine 50 kW

Bergey Excel wind turbine 10 kW

Variable-speed wind turbine 20 kW

PV array (to be added) N/A

DC renewable energy simulator 20 kW

(to be added)

AC renewable energy simulator 75 kW

Diesel gen-set grid simulator 60 kW

Two village load simulators 100 kW

DC battery banks 24 and 120 volts

The HPTB was operational in mid-year 1997, with the testing

of a control system for a high penetration wind/hybrid project

in Alaska, and completion of a New World Village Power 50-kW

power system characterization. We anticipate the HPTB will be

a very valuable and heavily used test capability for the next

several years. 

NREL Contact

Web site: http://www.rsvp.nrel.gov

Gerry Nix 

NREL/NWTC

phone: (303) 384-6925

fax: (303) 384-6901 

e-mail: gerald_nix@nrel.gov http://nwtc.nrel.gov

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NREL/FS-510-24201
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Hybrid power systems can consist of any combination of wind,

photovoltaics, diesel, and batteries. Such flexibility has obvious advantages for customizing a system to a particular site's

energy resources, costs, and load requirements. Flexibility

also makes the design process more difficult, however.

Previous models were either simple spreadsheets or detailed

simulations. The simple spreadsheet models do not consider

the time-dependent variability in the loads and resources. 

The detailed simulations, such as Hybrid2, give performance

projections for specific systems, but are unwieldy to use for

comparisons among many different configurations.

Scope

The National Renewable Energy Laboratory (NREL) has developed HOMER, an optimization model that takes into consideration hourly and seasonal variations in loads and resources,

simple performance characterizations for each component,

equipment costs, reliability requirements, and other site 

specific information. HOMER ranks the configurations by lifecycle cost and can automatically perform sensitivity analyses

on any subset of its inputs. It is intended for prefeasibility

analysis when the interest spans a broad range of inputs,

either because the input data is uncertain or because the

analysis covers a large area with differing conditions. Besides

optimized configurations, HOMER provides hourly energy

flows through each component, the impact of several simple

load management strategies, and economic information such

as the cost of energy and net cost of the system.

Results

NREL researchers have used HOMER in several analyses for

Indonesia, China, Russia, Argentina, Chile, Brazil, Mexico,

South Africa, and for market analyses for domestic renewable

suppliers and technology developers. It also has been used 

for market assessment and screening to initialize detailed

site-specific Hybrid2 analyses.

In 1997, HOMER was converted from specialized optimization

software to Visual C++. This conversion improved the model's

user-friendliness and facilitated wider distribution. There are 

now two versions of HOMER; a simple version intended for

planners unfamiliar with hybrid renewables and an advanced

version for experienced engineers. 

The specifications of diesel fuel efficiency and maintenance

requirements were improved. The dispatch algorithm was

improved to reflect antic-ipated operator control. Loads and

resources can now be specified either as typical days for each

season, with a user-specified level of additional variability, 

or with a time-series data file for an entire year. It reports

both optimal and near-optimal solutions. HOMER has been 

integrated with a mini-grid optimization model, ViPOR, to 

help planners compare mini-grids with individual systems 

for a particular village.

Planned Activities

HOMER will continue to be used for system screening and

market assessment. Further enhancements to the dispatch

capability are planned. A complete package of documentation

is being produced.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Peter Lilienthal

phone: (303)384-7444

fax: (303) 384-7411 

e-mail: lilientp@tcplink.nrel.gov

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Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-510-24630

The Hybrid Optimization Model for Electric Renewables (HOMER)

by Peter Lilienthal 7/98
Wind-Diesel

Diesel

PV-Diesel

Wind-PV-Diesel

Wind-PV

Wind

8

7

6

5

4

3

2

Average wind speed (m/s)

0 50 100 150 200 250

Average daily load (kWh)

HOMER. Assessing the “least” cost mix of supply technologies is a difficult analytical problem that depends on the

quality of the various resources, the local costs of equipment, labor and fuel, and the site-specific descriptions of 

the daily and seasonal variations in the loads, as well as the options for simple load management. The Hybrid

Optimization Model for Electric Renewables (HOMER) is a screening model that is useful for prefeasibility and 

sensitivity analysis. This graph is an example of a set of HOMER outputs for specific sets of assumptions. The 

results can change dramatically with different assumptions.

Sensitivity analyses were performed on the size of the load and the average annual windspeed. For very low loads in

a good wind resource, one small wind turbine will produce more energy than required. In lesser wind resources or 

as the load increases, a combination of wind and PV is preferred. Although in this example PV-diesel is the optimal

choice in poor wind resources for the smallest loads that were modeled (12 kWh/day), a pure PV system would be 

preferred for smaller loads or higher fuel prices or if more than 5% unserved energy would be acceptable. In the 

larger sizes, both wind turbines and diesel gen-sets have economies of scale that make PV less competitive. The 

vertical line representing 125 kWh/day demonstrates a seemingly counter-intuitive insight from the model. At 

moderate windspeeds PV is cost-effective, even though it was not cost-effective at low windspeeds. This is because 

the cost of the balance of systems required to utilize PV (batteries and inverter) is being shared by the wind turbines.
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

As the world's population grows, so will its demand for potable

water. Communities in arid coastal regions or regions with

brackish groundwater, especially island communities, are

already experiencing shortages of potable water. Many of

these communities are small and remote, such as villages 

on the islands in the Caribbean and Mediterranean, in arid

Australia, coastal South America, and the Middle East. Several

of these communities can meet their water needs through

demand management and conservation. However, for many 

of them, desalination is the most appropriate solution.

Desalination consumes a large amount of energy. Many remote

villages rely on costly, often limited supplies of diesel fuel for

their energy needs. Finding methods of using renewable energy

to power the process is, therefore, desirable and to encourage

communities in their use. Desalination is an ideal application

for a hybrid power system. The desalination system can be

operated as a deferable load and improve the load management of the hybrid system.

Scope

NREL researchers conducted a survey to examine the various

ways in which renewable energy has been used for desalination, including photovoltaic-powered electrodialysis units,

small scale solar thermal-powered multiple effect distillation 

systems, and direct-drive, wind-powered reverse osmosis 

systems. The survey compared the systems based on capital

cost, life-cycle cost, energy consumption, pretreatment

requirements, and operational complexity. 

NREL also sought to identify the possible ways in which renewable energy could be used for desalination and to decide areas

of further research. Because few companies or communities

will invest in an unproven application, ideas for key pilot 

projects to show the feasibility of renewable energy-powered

desalination were analyzed.

Results

The survey overview was published in April 1997 and identifies several areas where further research is needed (see Status

Table). Many pairings of renewable energy and desalination

processes that seem quite viable in concept remain untested.

These pairings are shown by empty spaces on the chart.

Prototypes and pilot scale testing are needed to decide the

viability of such systems and to learn how they compare with

other combinations. Both PV- and wind-battery electrodialysis

systems have been operated successfully. A mechanical wind

pump-reverse osmosis system using pressurized water storage has been tested in Australia, but a similar electrical wind

pump system has not, although several researchers have concluded that electrical wind pumps are superior to mechanical

pumps in high wind regimes. Recent improvements suggest

that vapor compression is potentially the least expensive and

lowest energy consuming form of sea water desalination, but

a renewable energy-powered system has not been tested.

NREL has tested one of the more promising combinations. An

electrodialysis reversal (EDR) system was tested using a windelectric power source. The EDR processed 1.1 liters per minute

(lpm) of brackish water (900 ppm) using an 850-Watt wind turbine from Bergey Windpower Company attached to a 48-Volt,

350 Amp-hour battery bank. The power consumption for the

test averaged 114 Watts. The low (1.1 lpm) flow rate was due

to a bypass valve leak on the system pump, which was discovered after the test was concluded. The system is part of a

Bureau of Reclamation project focusing on desalination units

suitable for use on Native American reservations and other

remote area locations in the United States. The Bureau has

tested this system in Spencer Valley, New Mexico, on the

Navajo reservation in a PV/battery design. In addition, the

Solar Thermal Division of NREL initiated an investigation 

into small scale solar thermal-powered multiple effect distillation systems.

Planned Activities

NREL will continue to investigate vapor compression units

suitable for use in villages.

Testing of independent hybrid PV/wind/battery systems with

and without backup generators is continuing. A cooperative

project between Australian researchers and NREL is being 

discussed with members of CASE/Australia, developers of a

commercial prototype of a PV-reverse osmosis system.

Desalination for Villages

by David Corbus 7/98
NREL Contacts

Web site: http://www.rsvp.nrel.gov

E. Ian Baring-Gould

phone: (303) 387-7021

Byron Stafford

phone: (303) 384-6426

David Corbus

phone: (303) 384-6966

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Department of Energy national laboratory.

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wastepaper, including 20% postconsumer waste.

NREL/FS-520-24629

Development Status of Renewable Energy-powered Desalination

(Italic text indicates research areas of greatest interest for near-term commercialization. Blank cells represent renewable energy-desalination combinations which have not been tested. n/a means that the particular technology cannot

be powered with this form of energy.)

Renewable

Energy

Source

Pilot plants (Spain,

1988; U.A.E., 1984)

Rugged ME

Pilot plant (Spain,

in progress)

Wind-battery

Pilot plant (Japan,

1988)

PV-battery

inverter

PV, no 

inverter

Wind-battery

Wind-diesel

Windmechanical

Wind-electric

direct drive

Solar thermal 

Solar thermal

electric or

mechanical

n/a

n/a

Commercial

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

Pressurized water

storage pilot plant

(Australia, 1990)

Pilot plant thermal

plus Stirling engine

(Texas, 1987)

Pilot plants (Kuwait,

1984; Mexico, 1978)

Pilot plant (Spain, in

progress)

Wind-battery-inverter

Pilot plants mechanical direct drive

(France, 1978)

Pilot plants (France,

1990; Spain, in

progress)

Wind-battery-inverter

Commercial prototype

battery/all-DC (New

Mexico, 1995) 

PV-direct drive

Commercial direct

drive (Australia,

1996)

Cut in/cut out control

pilot plants (Germany,

1979; France, 1987)

Pressurized water

storage

Pilot plants in

progress (Spain,

Greece)

Wind-diesel-load 

management

Multiple Effect

Distillation

Desalination Technology

Multistage Flash

Distillation Vapor Compression Reverse Osmosis Electrodialysis

Wind-diesel-load 

management
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

The National Renewable Energy Laboratory (NREL) is to helping

to accelerate the deployment of wind energy by producing the

most useful and sophisticated wind maps possible. In late 1995,

NREL developed an automated wind mapping technique using

Geographic Information Systems (GIS) software, improving on

previous wind mapping techniques that were limited by laborious and subjective analysis methods. 

The distribution of the wind resource for any particular region

is often very complex. Previously, maps had to be physically

drawn for topographic features such as ridge crests, elevated

plateaus, and coastal areas. This process was time consuming,

subjective, and often produced inconsistent analyses. NREL's

computer mapping technique substantially reduces subjective

analysis and greatly improves the accuracy of the maps. The

technique enables the analysis of the distribution of the

resource to be treated consistently throughout the region of

interest. Using advanced computers, the NREL mapping technique reduces the time needed to produce a wind resource

map for complex terrain.

Approach

A key component of NREL’s wind mapping effort is the development of updated, comprehensive global databases that 

supply input for the computerized technique. NREL uses a

variety of meteorological and geographical data sets in support of wind mapping projects. The principal meteorological

data used in NREL’s resource assessment projects are surface

meteorological data, upper-air (weather balloon) data, and

marine wind data from ships and satellites. In some regions,

the data are supplemented by surface data from new surface

measurement programs. The major type of geographical data

used are shaded elevation maps and digital elevation data.

NREL's computer mapping system uses an analytical approach

and is designed to portray the distribution of the wind resource

over a large area. These maps can be used to identify and 

target areas for possible project sites and further wind 

measurement programs.

Wind Resource Mapping

by Dennis Elliott and Marc Schwartz 7/98
Results

Wind resource maps generated with the NREL computerized

technique have been produced for specific areas of Chile,

Mexico, China, and Indonesia. The wind map for the Indonesian island of Sumba (shown here) shows a large island 

with varied terrain. Sumba has only one meteorological station

that has gathered long-term wind data. Nevertheless, using

advanced analysis techniques of the regional meteorological

data (primarily upper-air and satellite data) and available

topographical data, a wind map was generated that delineates

the most favorable wind resource areas on the island. Wind

measurement activities that will be useful in validating and

refining the island’s wind resource are underway.

Planned Activities

Additional wind mapping activities for at least eight countries

around the world are either underway or planned. The activities

include mapping of areas in Chile, Mexico, Dominican Republic,

Argentina, China, Indonesia, the Philippines, and Russia. Some

of these countries present complex wind flow regimes and

topography. Additional modules that take extremely complex

terrain and topography into account will be developed and

added to the computer mapping system.

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Dennis Elliott 

phone: (303) 384-6935

fax: (303) 384-6901

Marc Schwartz 

phone: (303) 384-6936

fax: (303) 384-6901

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wastepaper, including 20% postconsumer waste.

NREL/FS-520-24639
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Throughout the world, many villages lack access to electricity.

Many of these villages are so far from the utility grid that the

cost of extending utility lines is more expensive than providing

the village with its own autonomous electrical generation system. In recent years, wind and photovoltaic (PV) power have

become economically viable electricity options for villages

with sufficient wind or solar resources. Renewable resources

can be used to supply power to many houses through a centralized distribution system, or for isolated systems serving a

single house. ViPOR is a computational modeling tool capable

of optimizing an autonomous village electrification system

using the lowest cost combination of centralized and isolated 

power generation.

Scope

ViPOR represents the village as a set of demand points, each

of which consists of x and y coordinates and an average daily

electrical usage. Several economic parameters are required to

calculate the costs of the distribution grid and the isolated

systems. Centralized generation costs are calculated using 

the Hybrid Optimi-zation Model for Electric Renewables

(HOMER), which has been integrated into ViPOR. The planned

location (or several potential locations) of the centralized electrical power plant can also be specified. With such data, ViPOR

conceptualizes the lowest cost system that will supply power

to each demand point-either with an isolated power source

(such as a small wind turbine or a solar home system) or

through a centralized distribution grid. The design of the 

distribution grid involves the selection of the optimum location for the centralized power plant, the placement of multiple transformers, and the creation of a radial network of

medium and low voltage lines. The voltage drop constraint 

is implemented using a maximum low-voltage line length,

which limits the length of wire separating a demand point

from its supplying transformer. An example of the output 

of ViPOR is shown below.

Status

ViPOR is a 32-bit Windows application written using Microsoft

Visual C++. An alpha test version has been in development

since May 1996 and is now operational. Currently, ViPOR is a

model for NREL internal use. Analysis using ViPOR is done on

a case-by-case basis.

Planned Activities

Several improvements are planned for ViPOR. They include

explicitly calculated voltage drops at each demand node, wire

costs being dependent on terrain, consideration of several

wire and transformer sizes, and a method of accounting for

different levels of service between centralized and isolated

power systems.

Team Participants

• National Renewable Energy Laboratory

• World Bank

• National Rural Electrification Cooperative Association (NRECA)

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Peter Lilienthal (303) 384-7444

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Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-520-24634

Village Power Optimization for Renewables (ViPOR)

by Peter Lilienthal 7/98
Cost vs. Grid Load

Grid load (kWh/day)

Net present cost ($)

0 20 40 60 80 100 120 140

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Total cost

Generation cost

Distribution

cost

Isolated system

cost

An example of the output of ViPOR. Lightly shaded circles

represent houses. Those not included in the distribution

grid were determined to be more economically served 

with isolated systems. Circles indicate transformer locations. Thin lines represent low voltage wires. Thicker lines

represent medium voltage wires. Triangles indicate potential source locations; only the one chosen as optimal is

included in the distribution grid.

In the cost versus grid load graph, the total net present cost

of electrification and its three components are plotted versus

grid load.

1000 m
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

The Amazon region in Brazil is sparsely populated, with 

17 million people living in five million km2. This translates 

to less than 12% of the country’s population living in 58% of

its total area. Electri-city generation in the region, where it

exists, comes mainly from isolated diesel systems with capacities that range from a few kilowatts in small villages to tens 

of megawatts in some capital cities. While only 9% of Brazil’s

electric energy is consumed in Amazonia, consumption in the

region has increased at a rate of approximately 18% per year

over the last 20 years, greatly outpacing the national rate of

8.2%-growth for the same period. More than 300 minigrid 

systems are operated by local utilities in the Amazon Basin,

and thousands more are privately owned. Still, more than 

30% of the population lives without electricity. The table

below shows the distribution of system capacity for the 300

utility-operated systems.

Distribution of Utility Diesel Systems, by Size.

The cost of remote electricity is high and is largely dependent

on system size. In villages with diesel systems smaller than

100 kW, the cost can be greater than $0.50/kWh and the systems operate for only 6 to 12 hours per day. The high electricity costs and limited availability are due primarily to 

system operation and maintenance problems, low capacity

with high demand, and high fuel costs. The small systems 

are normally very unreliable. High electric costs are not 

borne by villagers, however, due to fixed electric tariff rates

mandated by the government. Electric service, when provided,

must be subsidized. The U.S. Department of Energy and the

National Renewable Energy Laboratory are working with

Brazilian utility providers to bring renewable wind and 

photovoltaic electricity into Brazil’s energy mix.

Two differently configured hybrid electricity systems are being

installed at two separate locations in the Amazon Basin. In

Campinas, a hybrid system will meet nearly the entire load

requirement with photovoltaic (PV)-generated electricity. In

Joanes, the hybrid system will operate in a peak-sharing mode,

transferring the peak demand of the village to off-peak 

periods at the diesel generation plant. In this way, it will 

use the maximum energy available from renewable sources.

Renewable generation in Joanes is expected to reach 115

MWh/year, supplying 45% of the total current demand. A 

concurrent energy conservation program in the village is

expected to boost that percentage to more than 60%.

Joanes

The village of Joanes is in the municipality of Salvaterra, on

Marajù Island, in the state of Parç. New World Village Power

Company of Vermont supplied the system design and the 

control and power-processor hardware of the 50-kW PV-windbattery hybrid system installed at Joanes. The system will

operate primarily in a grid-interconnected mode. It will deliver

renewable energy directly to the grid or charge the battery

bank to dispatch its full 50-kW capacity to the grid during

times of peak demand.

One year of solar radiation (global horizontal, direct normal,

and diffuse), ambient temperature, and wind (speed and 

direction) data is available for the site. During May 1994 to

April 1995 the average wind speed was 6.58 m/s, and the

daily average global-horizontal radiation was 5.30 kWh/m2,

indicating a good match of resource availability to the

demand during a typical day. 

The ratio of diffuse to global radiation ranged from 0.26 in

July 1994, to 0.63 in February 1995, whereas the clearness

index ranged from 0.40 in April 1995 to 0.60 in September

1994. The average temperature was approximately 27°C. 

The Joanes system design and configuration are based on a

rotary converter (shaft-coupled DC motor and synchronous

alternator), for power conversion. It comprises four 10-kW

wind machines supplied by Bergey Windpower and 10 kW of

PV modules from Siemens Solar Industries. Below, a system

schematic shows the connection to the Salvaterra grid.

Hybrid Village Power Systems in Amazonia, Brazil

by Roger Taylor 12/97

System

Size (kW)

0–100

100–500

500–1000

>1000

Total

% of Total

# of Systems

10

37

23

30

100
Daily load and power generation profiles, village of Joanes—

annual daily average (1994/1995).

Simplified schematic drawing of Joanes hybrid system.

The Salvaterra power plant is one of 41 utility owned and

operated diesel systems presently installed in the state of

Parç. The plant has a nominal capacity of 1.2 MVA. Joanes

receives electricity from this system, through a 17-km line

operated at 13.8 kV. The village has 170 consumers, plus 

public lights. 

Campinas

The village of Campinas is about 100 km upstream from

Manaus, in the state of Amazonas, between the Solimões 

and Rio Negro rivers. The system installed in Campinas is 

a 50-kW PV-diesel-battery hybrid. Advanced Energy Systems 

Ltd. (AES), as a subcontractor to Bergey Windpower Corporation, supplied system controls and the power processor 

for the Campinas plant. Solarex Corpo- ration supplied a 

50-kW PV array. Two existing diesel units, currently supplying the village load, are being modified to interface 

with this hardware.

The Campinas system design and configuration is shown

below. The PV panels are fixed. The AES inverter primarily

provides control, data acquisition, fault detection, and diagnostics. A local operator interface is connected to the inverter

via a serial link.

Simplified schematic of Campinas hybrid system.

These two hybrid systems represent significantly different

approaches to the problem of remote power supply using

renewable energy. Deployment of both systems is expected 

to provide the Brazilian utilities with installation and operating

experience in hybrid power. Data gathered from these installations will contribute significantly to the body of knowledge

about hybrid power systems and influence the design, implementation, and operating strategy of future projects.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Roger Taylor

phone: (303) 384-7389

e-mail: roger_taylor@nrel.gov

Produced by the National Renewable Energy Laboratory, a U.S.

Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-510-24192

Bergey Excel Substation

Remote

switch

Remote

switch

Centralized

remote

operation

interface

Centralized

remote

operation

interface

Feeder of

Campinas

Local

operation

interface

Local

operation

interface

AES-inverter

Battery

bank

Battery

bank

Diesel

generator

System

control

Inverter

DC

source

center

PV panels

10.2 kWp

PV panels

50.2 kWp

Modules

Siemens

M55

Modules

Solarex

MSX-64

Rotary converter system

Salvaterra grid

13.8 kV

228 VDC

Feeders to Joanes

0.0

0.4

0.8

1.2

0 4:00 8:00 12:00 16:00 20:00 24:00

Hour

Normalized power

Solar power

Wind power

Load
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

The Republic of Ghana is between four and twelve degrees

north latitude, bordering the North Atlantic Ocean between

Côte d'Ivoire to the west and Togo to the east. The climate 

is warm and comparatively dry along the southeast coast, 

hot and humid in the southwest, and hot and dry in the north.

About 18 million people populate Ghana. Their average per

capita income is approximately $400. Ghana has identified

4,221 village communities with a population above 500 inhabitants. As of 1991, only 478 of these communities had been

electrified, all of them via grid extension. By December 1995, 

the number had grown to 904.

Ghana's electric power system is operated by two parastatal

utilities: the Volta River Authority (VRA) and the Electricity

Corporation of Ghana (ECG). The VRA is responsible for power

generation and transmission at 161 kilowatt-amperes (KVA)

and 225 KVA. The ECG is responsible for distributing power 

in the south while the Northern Electricity Department (NED),

a subdivision of VRA, handles power distribution in the north.

The VRA and the ECG report to the Ghanian Ministry of Mines

and Energy.

The government of Ghana is committed to bringing electric

service to every community of 500 or more people by the 

year 2020. The National Electrification Scheme (NES) is planned

to proceed in six five-year phases from 1990 to 2020. It has

been assumed that grid extension, with community participation under the Self-Help Electrification Program (SHEP), would

be used to bring electricity to the more than 3000 villages

still in need. This is a challenge and financially difficult for

several reasons: the low density of rural populations, low

income levels, the significant distances required for mediumvoltage lines, and the costs of medium-voltage and low-voltage

lines, transformers, and service drops. Most of the equipment

is imported, and more than 90% of its cost is in foreign

exchange. Also, SHEP requires that communities be within 20 km

of a medium-voltage line, a prohibitive condition for many.

Even if the Ghanian NES meets its goals, many remote communities will still lack electricity. However, free-standing photovoltaic (PV) systems can provide valuable electric service to

smaller and larger communities that would otherwise be electrified via grid extension. If population growth (3%/year) continues, by the year 2020 the population of Ghana will have

doubled, presenting additional challenges for rural electrification schemes.

Project Objectives

The project goals are to facilitate the development of a national

capacity, combining both private-sector and public-sector

efforts; to use primarily renewable-energy-based technologies,

especially PV and PV/diesel-hybrid power systems; and to 

provide sustainable rural electric power services. These technologies will serve in individual applications and centralized 

elec-trification of off-grid communities unsuitable for electrification via grid extension. 

VRA/NED will own and operate the power systems and provide

electric service to target villages on a fee-for-service basis.

Rural communities will be expected to keep equipment from

being abused or damaged. They will also be expected to

invest "sweat equity" in the systems through labor and some

capital contribuitons for installation of power poles and PV

units. Because the government of Ghana subsidizes electricity

prices, the government will cofinance the delivery of electricity

services, while requiring a fee for service from the communities. There is some precedent (a PV battery charging project 

in northwestern Ghana sponsored by the Ministry of Mines

and Energy [MOME]) in having rural communities pay for 

electricity services. The costs are comparable to current

household expenses ($5 to $15/month) for candles, kerosene,

dry cell batteries, auto batteries, and battery charging. Service

costs will be determined in the project design, but the government is committed to cost recovery for electric service as 

part of economic restructuring and recent utility restructuring legislation. 

Technical and economic performance data will be used to

assess how pilot-scale renewable energy options might apply

to much larger projects. The intent is to remove barriers to

the introduction and widespread diffusion of renewable 

energy technologies for off-grid electricity in rural Ghana. 

Renewable Energy Electricity for Social and Economic

Development in Rural Ghana

by Roger Taylor 12/97
Project Description

Twelve villages in the Mamprusi East District and the village

of Tenzug in Northern Ghana were selected for participation.

Microgrids powered by PV/diesel-hybrid systems will be

installed in three villages and free-standing PV units used in

nine others. A community energy and socio-economic survey

was initiated by MOME in collaboration with VRA/NED and 

the National Renewable Energy Laboratory (NREL) for the 

target region. The survey will help assess likely energy consumption patterns and community willingness and ability 

to pay for electricity. In addition, technical standards will 

be established and local operators and non-government 

organizations will be trained. The role of the parastatal

VRA/NED will be critical in spurring the widespread use 

of the technologies. 

Information on costs, training requirements, operational problems and solutions from previous installations will be used 

to establish practical technical standards for equipment and

installation practices for systems in Ghana. Equipment specifications will be developed by the VRA/NED and MOME in 

collaboration with NREL and technical experts from the 

private sector. 

Commercial equipment and appliances will be selected for

simplicity, robustness, price, local availability and eventual

local production. Particular attention will be paid to ease of 

maintenance in Ghana. Negotiations with suppliers will define

the conditions for participating in joint ventures and technology transfer operations. 

Energy services will respond to different levels of income and

willingness and ability to pay for electricity. Services will

include portable solar lanterns, fixed solar home systems, 

community services such as water pumping, and systems 

for refrigeration, sewing, carpentry, and grain grinding.

Household PV systems will be installed in all twelve of the

pilot communities. Lighting options will include highefficiency compact fluorescent units. 

Several villages will be assessed for possible siting of local

minigrids powered by PV/diesel- hybrid units. Some will 

also have distributed PV systems for residential compounds

and community functions located too far from the minigrid

for hookup. Both technical and economic criteria will be used

to determine the best power generation and distribution 

system designs.

Regional Operations and Maintenance

Providing highly reliable electricity services on a sustainable

basis in rural areas requires local operations and maintenance

capabilities. An operations and maintenance (O&M) center will

be established near the pilot communities. Monitoring the

hybrid power systems will permit diagnostics and early 

warning about potential problems. Quick-response maintenance and repair capabilities will be necessary to respond 

to technical problems with the hybrid power systems. The

center will also support the PV solar home systems. 

The O&M center will be established and staffed by trained

VRA/NED technicians. A government-owned house will be 

renovated and equipped to support project implementation

and post-project sustainability. The house is located in the

town of Nakpanduri, about 30 km northwest of the center of

the pilot region in the Mamprusi East District, and is less 

than 10 km from the nearest pilot community, Bimbagu.

The project action plan is now being prepared for in-country

discussion and consensus building. Once the government of

Ghana and the United Nations Development Program, with 

the Global Environment Facility, have approved the plan,

implementation can begin.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Roger Taylor

phone: (303) 384-7389

e-mail: roger_taylor@nrel.gov

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RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Introduction

In Brazil, an estimated 20 million people do not have access

to electric energy. Much of this population lives in the arid

northeast part of the country. The electric grid reaches the

larger towns and is being systematically extended to rural

properties and villages. However, rural extension is costly 

and the rural electric cus- tomers consume only very modest

amounts of electricity, typically 10 to 30 kWh per month. 

The cost of even short grid extensions is often greater than

$1,000, making investments in electricity connections for

these populations financially prohibitive.

Small stand-alone photovoltaic (PV) systems can provide the

basic low-energy consumption services needed by the rural

peoples (lighting, TV, radio) for $500 or less, making the

renewable energy option a very promising alternative to 

grid extension.

A different situation exists in Brazil's northern Amazon Basin.

More than 300 villages in this region have diesel electric generators operated by local utility providers. These generators

often provide electric service for only six hours each day due

to the very high cost of diesel fuel deliveries to these villages—

many places are accessible only by boat. Thousands of small

privately owned generators also operate in the region.

Renewable energy hybrid (PV, wind, battery, diesel) power systems are of great interest to the state utilities and to Eletrobras (the main federal utility) for enhancing electric services 

in the Amazon Basin while reducing diesel fuel consumption

and the associated cost of fuel deliveries. Today, electricity in

310 villages is being subsidized by the rest of the Brazilian

population at approximately $300 million per year. The

demonstration of viable hybrid power operation in these

remote regions could open a significant near-term market for

renewable hybrid power systems.

Scope

The U.S. Department of Energy, through the National Renewable Energy Laboratory (NREL), is undertaking a two-phase

joint technology research and demonstration effort with the

Centro de Pesquisas de Energia ElÄtrica (CEPEL) in the Federal

Republic of Brazil. Objectives of the cooperative U.S./Brazilian

program are:

• to establish technical, institutional, and economic confidence

in renewable energy systems to meet the needs of the citizens

of rural Brazil

• to establish ongoing institutional, individual, and business 

relationships (U.S./Brazilian partnerships) necessary to carry 

out sustainable programs that benefit both Brazil and the 

United States

• to lay the groundwork for large-scale rural electrification 

with renewable energy systems.

Phase 1 of the cooperative effort put PV electric lighting systems in about 350 homes in the Sertao de Sao Francisco

region in the Brazilian state of Pernambuco and PV electric

lighting systems in about 400 homes and 14 schools in the

outback of the state of Cearç. Under the terms of a contract

for subsequent use by the state utilities in Cearç (COELCE) 

and Pernambuco (CELPE), NREL provided key system components (PV panels, batteries, and charge controllers) to CEPEL.

COELCE and CELPE were responsible for obtaining the balanceof-system components not provided by NREL/CEPEL, and for

doing the systems integration, installation, maintenance, and

evaluation for a 3-year period following installation. Installation of all systems was complete in early 1994.

In Phase 1, a total of 65 kW of PV modules, 1300 (100 Ah) batteries, and 900 charge controllers were installed. The electric

utilities in Cearç and Pernambuco provided all other equipment (structures, wiring, switches, DC breakers, housings,

conduit, fluorescent lights and ballasts) and installation.

Training courses for the instal-lers were provided through 

a cooperative effort among CEPEL, the equipment vendor

(Siemens Solar Industries [SSI]), and PV experts at the Federal

University of Pernambuco. 

Phase 2 extends the pilot project into six additional Brazilian

states (Acre, Alagoas, Amazonas, Bahia, Minas Gerais, and Para).

It also extends the demonstration of PV applications to a

Joint U.S./Brazilian Renewable Energy Rural Electrification Project

by Roger Taylor 12/97
wider variety of stand-alone end uses and hybrid village power,

and introduces the use of wind-electric power generation for

selected sites and applications.

The hardware subcontracts awarded under Phase 2 were carried

out much like the implementation of Phase 1 and completed

in October 1994. The subcontracts awarded under the project

expansion have three primary tasks: system design integration assistance, supply of specific U.S.-manufactured components to Brazil, and system installation supervision and 

operator training. The NREL agreement with CEPEL also was

extended to cover supervision of Phase 2 equipment installation and a 3-year operations and maintenance period following installation.

Phase 2 stand-alone systems are being supplied to the Brazilian

states of Acre, Alagoas, Bahia, and Minas Gerais. U.S. vendors

providing the equipment include SSI, Solarex, Photocomm

(using USSC modules), and Bergey Windpower. A total of 

51.5 kW of PV modules, 195 charge controllers, 25 inverters,

32 water pumps, 5 wind-electric systems with water pumps,

and 2 wind-electric systems with inverters were shipped by

the vendors in early 1995.

Besides the stand-alone projects, two hybrid power systems

were installed in the Amazon basin. The first is a 50-kW PVwind-battery hybrid system in the village of Joanes, on the

island of Marajo, near Belem, Parç. The system control and

power processor were supplied by New World Village Power,

four 10-kW wind machines were supplied by Bergey Windpower, and 10 kW of PV modules were supplied by SSI. A 

battery bank of approximately 350 kWh capacity was supplied

by the local electric utility, CELPA.

The second hybrid system is at the village of Campinas,

approximately 100 km upstream from Manaus between the

Solimões and Rio Negro rivers at approximately 3.3 degrees

south latitude. Accessible only by boat, electricity in Campinas is supplied to about 100 houses through a local electric

grid. The grid operates for six hours per day, from 6:00 pm 

to midnight, off one of two on-site 48-kW diesel generators.

Diesel fuel is supplied to the power plant every two months

and stored in a local tank.

A 50-kW PV-battery hybrid system was installed in Campinas.

As a subtier contractor to Bergey Windpower, Advanced Energy

Systems Ltd. Supplied the system control and power processor. The 50 kW of PV modules were supplied by Solarex Corporation. As with Joanes, a battery bank of approximately 350

kWh capacity was supplied by the local electric utility, CEAM.

Conclusion

The Brazilian utilities and federal government continue to

show strong interest in developing and deploying solar electric systems as an alternative to grid extensions. Exemplifying

the growing interest in renewable energy in Brazil, CEPEL has

organized a PV working group among the utilities and other

interested stakeholders. The Grupo Trabalho de Fotovoltaica

has established a number of working committees to address

the broad array of data, standards, and development concerns

regarding PV commercialization in Brazil. A program to install

solar systems in rural schools and health clinics was recently

started by the Brazilian federal government with the assistance of CEPEL.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Roger Taylor

phone: (303) 384-7389

e-mail: roger_taylor@nrel.gov

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RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Alaska has approximately 250 rural villages with no link to a

central power grid. A few of these villages have no central

electric generating facility, however, the vast majority are

served by diesel-driven generators and local electric distribution systems. Despite Alaska's vast crude oil resource, diesel

fuel must be imported by barge because most of the villages

are extremely remote and there are few good roads. The great

distances and difficult transport conditions result in diesel

fuel that costs from $0.80 to $3.00 per gallon delivered. The

high fuel cost and high operations and maintenance costs of

diesel generating stations add up to electricity generation

costs ranging from $0.15 to $1.00/kWh for the villages.

To ease the energy cost burden on rural inhabitants, Alaska's

Department of Community and Regional Affairs (DCRA) administers the Power Cost Equalization Program (PCE), which 

provides a subsidy to rural electric customers as high as

$0.41/kWh and totals nearly$20 million annually. Because 

of declining Alaskan pipeline oil revenues, the fund from

which they derived the PCE subsidy payments, is expected 

to be depleted in approximately six years. To stave off a 

rural energy crisis, the state of Alaska is urgently seeking 

to develop alternatives and supplements to diesel for both 

electricity generation and heating fuel.

Besides the economic problems associated with diesel use,

there are significant environmental problems associated with

the fuel. Because many ports along the coast and along the

interior rivers are accessible only a few months out of the

year, large quantities of diesel must be stored on-site in bulk

fuel tanks. Many rural village tank farms have deteriorated

with age and are leaking, contaminating surrounding soil.

Environmental Protection Agency regulations threaten many

village tank farms with closure. The DCRA estimates that it

would cost $200 million to upgrade existing diesel tank 

farms to today's standards, not including the cost of environmental remediation. Beyond the looming fuel storage and

transport problems, diesel operation introduces substantial

noise and air pollution into the village environment. Use of

renewable energy for electricity generation will mitigate fuel

transport and storage problems and reduce the pollution and

noise associated with diesel fuel consumption.

The rural power situation in Alaska is similar to that of many

developing countries around the world, where rural electricity,

if it exists at all, is provided by small, isolated diesel power

plants. Alaska can serve as a domestic proving ground for 

U.S. industry in using renewable energy solutions to bring

power to remote communities worldwide.

Project Objectives

The project staff will design, build, install, and test a high

penetration wind-diesel system in Wales, Alaska. Wales is a

small village on the northwest coast of Alaska with approximately 160 inhabitants, mostly Inupiat Eskimo. Alaska Village

Electric Cooperatives will operate the system as the host utility

and the Kotzebue Electric Association will own and maintain 

the system.

They will integrate the new components of the power generation system (wind turbines, power conditioning, energy storage, and a control system) with the existing diesel system,

which has an installed capacity of approximately 360 kW. In

addition to electricity generation, the project will show the

effective use of community heating loads to absorb excess

wind energy and maintain grid stability. 

We expect the hybrid system to consume 50–60% less fuel than

the current diesel plant, with additional savings coming from

the application of excess wind energy to village heating needs.

The Wales project will be a prototype to validate the technical

feasibility and economic viability of high penetration winddiesel hybrid electric generation systems for applications in

other rural villages, in Alaska and other interational locations.

Project Funding

The Wales wind-diesel project has an overall budget of approximately $1.2 million, with major funding provided by the U.S.

Department of Energy, the U.S. Environmental Protection

Agency, and the Alaska Science and Technology Foundation.

Additional contributors include the Alaska Department of

Community and Regional Affairs Division of Energy, Kotzebue

Electric Association (KEA), and the Alaska Village Electric

Cooperatives (AVEC).

A High-Penetration, Wind-Diesel Hybrid Power System

by Steve Drouilhet 7/98
Planned Activities

Assembly of the system was completed in July 1998 at the

Hybrid Power Test Facility at the National Wind Technology

Center. System operation was successfully demonstrated in

the simpler operating modes, where the wind turbines operate

in parallel with the diesel generators, and the diesel generators

regulate system frequency and voltage. The more advanced

operating modes, which involve the energy storage component

and allow the generators to be turned off completely, are

scheduled for tests during late 1998. The complete winddiesel controls package is scheduled for shipment to Wales,

Alaska, in spring 1999. Installation, startup, and commissioning will occur during the summer of 1999. Before the

package arrives, KEA and AVEC personnel will be working 

to install the wind turbines, convert the village power plant 

from single-phase to three-phase, install electric resistance 

heaters in several village heating systems (for use as secondary loads), and upgrade the existing diesel controls for

automatic operation.

NREL Contact

Web site: http://www.rsvp.nrel.gov

Steve Drouilhet

phone: (303) 384-6909

fax: (303) 384-6901

e-mail: steve_drouilhet@nrel.gov

Alaska Contact

Dennis Meiners

Alaska Department of Community and Regional Affairs

Division of Energy

P.O. Box 112100

Juneau, AK 99811-2100

phone: (907) 465-4632

fax: (907) 465-2948

e-mail: DMeiners@comregaf.state.ak.us

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RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Wind-power systems can help indigenous economies achieve

social advancement and increased self-sufficiency. The WIND

project seeks to mobilize sustained local interest and capability

through demonstration and participation. To achieve this

objective at least 10 system applications will be carefully

selected for locations in the eastern islands of Indonesia.

Energy delivery and water pumping systems will be designed,

installed and operated with the active participation of the

local communities and non-governmental organizations.

One priority of the WIND project is to stimulate interest in wind

energy technology as an environmentally sound, commercially

viable investment for local and regional economies. The practical application of wind-power technologies should lead to

entrepreneurial opportunities and an increased market for

related products and services provided through a system of

local tariffs. Such economic growth will create the potential

for duplicating the project and provide a mechanism for 

continued system operations and maintenance, vital for longterm project success.

Key Activities

Winrock International has contracted with the National Renewable Energy Laboratory (NREL) to provide technical assistance

to the WIND project in the following areas:

• Wind resource assessment. Providing guidance in the 

selection of monitoring sites, the processing and analysis 

of wind data, and the determination of perspective locations

for system installation

• Technical training in wind energy technology and 

applications. Helping with any problems encountered 

during the installation and operation of wind systems 

in Indonesia

• System design review. Assist in the design and analysis of

proposed hybrid and water pumping systems

• System performance modeling and economic analysis.

Use computer models developed at NREL to perform analysis

on systems and prospective system loading

• System monitoring and evaluation. Design and install 

monitoring systems for both hybrid and water pumping 

systems. This will also allow for continued performance 

monitoring and evaluation.

Status

Ten data-logging systems have been installed to monitor winds

at 22 sites in the eastern islands of Indonesia. The systems

are currently collecting data to support the NREL/Winrock

wind mapping effort. Nine wind-power systems (Bergey Wind

Power Co.) have been installed on the islands of Timor and

Sumba to provide energy for community and entrepreneurial 

enterprises. Five of these systems were installed to provide

water pumping for irrigation and household uses. The other

systems are hybrid power systems designed to provide electrical power for peanut processing, lighting for community

kiosks, a blacksmith shop, freezers for fish storage and 

popsicle production, and battery charging.

As a second phase of the project, fifty 600-W wind turbines

(World Power Incorporated) were purchased for use in Indonesia. The turbines will be configured with other equipment

to produce electricity for small hybrid water pumping applications. The systems will be leased to households and small

businesses with the profits going to support the purchase 

of additional systems.

Planned Activities

Partners in the WIND project will continue wind resource

assessment and mapping, site identification, and project

design activities. They will develop cost-effective system 

performance monitoring protocols, and install monitoring

equipment on a representative set of systems. NREL will 

assist Winrock International with system startup and commissioning in Nusa Tenggara Timur, Indonesia under the sponsorship of USAID.

Location: Nusa Tenggara Timur (NTT), Indonesia

Project Manager: Winrock International

Sponsor: USAID

Wind for Island and Non-governmental Development (WIND) in

Indonesia 

by Ian Baring-Gould 7/98
NREL Contact

Web site: http://www.rsvp.nrel.gov

Ian Baring-Gould

NREL/NWTC

phone: (303) 384-7021

fax: (303) 384-6901

e-mail: ian_baring-gould@nrel.gov

WIND Contact

Winrock International

Peter Williams

1611 North Kent St.

Suite 600

Arlington, VA 22209

phone: (703) 525-9430 x623

e-mail: pkw@msmail.winrock.org

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NREL/FS-520-24635
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

The Sustainable Rural Economic Development Ramakrishna

Mission PV Initiative was conceived as a small-scale demonstration project that would show the economic viability of

photovoltaic (PV) systems in the Sundarbans region of West

Bengal. The viability was dependent on the systems being 

economical without substantial subsidy and eventually 

without any subsidy at all. The operation and maintenance 

of the systems were the responsibility of the chosen nongovernment organization, the Ramakrishna Mission. Mission

personnel were to identify beneficiaries of the PV systems,

define a financing arrangement that would be acceptable 

and sustainable to the villagers of the region, and serve as 

a banker to collect revenues from the end users. 

The potential for expanding the project beyond the limited

demonstration was also a prime consideration. With U.S. 

systems used for the installations, our industry would 

also have the advantage of satisfying any future PV system 

purchases. The cooperative nature of the project would also

be expected to lead to improved relationships between our

two countries and further trade expansion. The project was

also designed to reflect market forces or Atrue costs.

Without excessive subsidies, and with end-user money required

for participation, the systems were expected to have the best

of care. Most importantly, the benefits of electricity would 

be made available to those who had little or no access in the

past. Improvements in educational opportunities, health care,

productivity, and entrepreneurship would be standards for

success of the project. Finally, the project would be selfsustaining. An infrastructure would remain to support additional applications including financing, education, training,

repair, and maintenance. Successful deployment of the project

would pave the way for acceptance of renewable technologies

as a means for providing the benefits energy to the developing world.

Scope

Several villages and various applications were identified for

participation in the project. In the village of Gosaba (with

1000 families), the training center will receive ten lights for 

4 hours of operation each night, two 30-watt wall sockets, a

battery-charging station for ten 100-Ah batteries and twenty

solar lanterns, and three stand-alone street lights with 11-watt

compact fluorescent (CFL) lamps. The possibility of mounting

the charger station on one of the Mission's boats will be investigated. This would allow the service to be transported throughout the island communities. The village of Katakhali, with 

100 families, will be provided 100 domestic lighting units

with one 11-watt CFL and one 30-watt socket for each home.

The youth club will have two 11-watt CFLs and one 30-watt

wall socket. In the village of Pakhirala, the weaving center 

will receive three 11-watt CFLs, a community street light and

eight 11-watt CFLs with two 30-watt wall sockets. The electricity for the weaving center will extend production hours 

by about four per night. 

The health clinic in Satyanaryanpur will receive a vaccine refrigerator and eight 11-watt CFLs with two 30-watt electrical sockets.

A second battery-charging station for ten 100 amp-hour car

batteries will be placed at the Chota Mollakhali youth center.

The village of Kumirmari will have 100 home lighting systems

installed. The village of Satjelia will be furnished 100 domestic

home lighting systems, each with a 9-watt CFL and a 30-watt

electrical socket.

A two-week training program will be offered to participants

chosen by the Mission for their background in basic electrical

applications, including radio and television repair. The Mission

has a very good reputation for providing high-quality training.

Remote Power International prepared a detailed training manual that will be used by the Mission after trainers funded by

the National Renewable Energy Laboratory (NREL) leave. The

last week of training will be hands-on installation in the island

communities. Applied Power Corporation, the prime contractor

for the project, has prepared detailed schematics and installation procedures for all of the proposed systems.

The Ramakrishna Mission PV Project—A Cooperation Between

India and the United States

by Jack L. Stone and Harin S. Ullal 12/97
Project Responsibilities

The agreement calls for 50-50 cost sharing with the United

States providing the PV modules, charge controllers, a water

pump, and training. India provides the batteries, compact 

fluorescent lamps, lamp fixtures, a vaccine refrigerator,

mounting structures, all balance-of-systems components,

solar lanterns, and pays all custom duties for imported 

components. The Ramakrishna Mission is responsible for 

identifying recipients of the various systems and participants

in the NREL training sessions. The Mission will do follow-up

training, maintenance and replacement, and serve as the 

collector of revenues from the end users. NREL will help 

the Mission to identify potential private sector partners 

with whom proposals will be submitted to IREDA to expand

the project beyond this initiative.

Project Financing

In India, the domestic unit of two lights plus one wall socket

along with the necessary PV panel, battery, and accessories

cost approximately Rs. 14,000 ($1 = Rs. 35). With Rs. 6,000

available as a government subsidy, the amount to be borne 

by the user is Rs. 8,000 per unit. The end user will provide 

a down payment of Rs. 3,500 upon installation. The balance 

(Rs. 4,500) will be treated as a low-interest loan to be repaid

in monthly installments of Rs. 40 per month over 10 years. 

In this way Rs. 40 x 12 months x 10 years or Rs. 4,800 will 

be realized-Rs. 4,500 against the loan and Rs. 300 as interest.

In addition, Rs. 20 per month will be charged for maintenance

charges on each unit and the costs for spares will be at the

owner's expense. Thus the users will pay a total of Rs. 60 

per month for 10 years. They may also opt to pay Rs. 100 

per month (80+20) for five years. Some special category 

participants, who are not in a position to make the Rs. 3,500

down payment, will need only Rs. 500 down with the balance

treated as a loan to be repaid in five to ten years. After the

loan is liquidated, ownership will transfer to the users. The

amount recovered from the end users’ down payments and

loan interest will form a Revolving Fund for the project, 

which in turn will be used to replicate the program to other

villages and for other participants in the same village.

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Jack Stone

phone: (303) 384-6470

Harin Ullal 

phone: (303) 384-6486

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Project Brief

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Renewables for Sustainable

Village Power

Background

It is estimated that two billion people currently live in areas

that lack electricity. Many of these areas will not be connected

to the electric grid in the foreseeable future due to high gridextension costs. However, areas beyond the grid can be serviced

by a variety of stand-alone systems. These stand-alone systems

can consist of combinations of photovoltaic (PV) panels, wind

turbines and generators running on diesel, gasoline, or propane.

Stand-alone systems range in size from small solar lighting

systems that provide 100–200 watt-hours for lighting at night

to diesel-powered minigrids with peak capacities of more 

than a megawatt.

In remote communities, the first facility to be hooked up to

electricity is often the local health clinic. Traditionally, the

power has been supplied with fossil-fuel generators. More

recently, PV panels have been installed in some clinics to 

provide electricity. Wind turbine generators have received 

less consideration for providing electricity to clinics. Here 

we examine the least-cost options for providing stand-alone

power to a clinic under a variety of climatic and economic

conditions. In this study three load profiles were developed

for typical rural clinics of different sizes. A stand-alone power

system was designed for each load profile for three different

climatic regimes including South Africa, Indonesia, and Brazil.

Parametric analysis was performed to study the effects of

wind speed, type of wind, fuel price, and capital costs.

Typical Applications

Typically, health clinics require electricity for lighting, communication equipment and refrigeration. Electric lighting is vastly

superior to candles and kerosene lamps. Often when a clinic

is electrified, lights are included in the initial installation

package. Due to the need to conserve power, most off-grid

clinics use compact fluorescent lights that typically draw 

from 5 to 20 watts each. Even clinics that use daylighting

need electric lights for emergency night care.

Emergencies also require reliable communication equipment.

Electricity provides radio and satellite communications that

enable the clinic staff to consult with specialists as needed

and to arrange for the speedy evacuation of seriously 

ill or injured patients.

Health clinics also rely heavily on refrigeration to maintain

the viability of medicines and vaccines. In the last 15 years

great progress has been made in the development of vaccine

refrigerators. These small, highly efficient, usually DC, refrigerators can be powered by a modest-sized solar array. Typical

models draw 80–120 watts and will run for around 10 hours

per day. Some super efficient models use even less energy.

Even though they are expensive, these refrigerators are

becoming increasingly popular and are considered so important that the World Health Organization has set standards 

for them. Like lighting, a vaccine refrigerator is often included

in the installation package when a clinic is initially hooked 

up to electricity.

Other applications for electric power in clinics include small

water pumps, ceiling fans, small sterilizing stoves, vaporizers,

computers, centrifuges, and TVs and VCRs. The latter are used

not only for entertainment, but also to show instructional and

public health videos. Larger facilities such as district hospitals

also may have additional laboratory equipment.

Typical Clinic Services

• Inoculations

• Treatments for: Respiratory infections

Venereal diseases

Diarrheal diseases

Skin disease

Eye disease

Malaria

Parasitical diseases

Sizing of Stand-Alone Power Systems for Rural Health Facilities

by Tony Jimenez 12/97
• Trauma: Burns

Simple fractures

Wounds

Snake bites

• Pre-natal/post-natal care and child birth

• Dental

• Referral to hospitals

• Public health education

• Family planning

Typical Electrical Appliance Data

Power Duty Cycle Energy Use

Item (Watts) (hours/day) (kWh/day)

Lights 5–20 Varies Varies

2-way radio 75 1 0.075

Refrigerator 60–120 0.3–0.7

Stove 200–500 1 0.2–0.5

Vaporizer 35-70 1 0.035–0.070

Ceiling fan 5–20 Varies Varies

NREL Contact

Web site: http://www.rsvp.nrel.gov

Tony Jimenez

phone: (303) 384-6916

fax: (303) 384-6901

e-mail: tony_jimenez@nrel.gov

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Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-510-24196
RSVP

Project Brief

http://www.rsvp.nrel.gov

Renewables for Sustainable

Village Power

Background

Presently, centers for electrical power distribution along the

Nile include a 500-kV transmission line from Aswan to Cairo, a

220-kV transmission line in Cairo and Lower Egypt, and 132-kV

transmission lines in Upper Egypt. These distribution systems

and lower voltage (66-kV) transmission lines generally do not

reach remote, isolated villages in regions such as the Sinai.

The social and economic impacts that result from the lack of

electrical power in rural areas have sparked an intensive

effort to bring electricity to Egypt's rural areas. The World

Energy Council 2 reports that new, single-family homes in

much of Egypt's rural territories, that are more than half a

kilometer from existing electric lines, are more cost-effectively

served by solar energy than by extending the electric grid.

Even diesel is more expensive than solar energy in these

instances. A diesel-generator of equivalent capacity has a lifecycle cost almost twice that of a photovoltaic (PV) system. Thus,

there exists an opportunity for Egypt and neighboring countries to provide cost-effective PV electrical generating capacity

to those living beyond a reasonably priced electrical grid.

Scope

The U.S. Department of Energy's National Renewable Energy

Laboratory (NREL), the New and Renewable Energy Authority

(NREA) of Egypt, and other local and international organizations took the first step in an effort to initiate renewable 

energy programs in Egypt. The programs include several 

projects to enhance and strengthen Egyptian understanding

and capabilities in rural and remote electrification.

To help the decision-making process and to enhance the

awareness level of renewable energy applications in remote

and rural areas, two conferences were organized jointly by

NREL and NREA in Cairo, Egypt. The First International 

Conference on Solar Electricity, Photovoltaics and Wind, was

held in October of 1994 and the second was held in April 1996.

The conferences provided a real-time forum for interactions

between PV and wind technology manufacturers/suppliers 

and technology users, interested researchers and government/

industry decision makers, making possible discussions about

near-term deployment of renewable energy systems. The two

conferences also offered an opportunity to identify the most

feasible and cost-effective applications and methods of setting up the technologies in developing countries, particularly

the Middle East region. Delegates from more than 30 countries

actively participated at the conferences through official meetings with the Minister of Electricity and Energy, Head of NREA,

meetings with USAID-Cairo, and other dignitaries, academics,

and industrial contacts. Eight project proposals, combined

with the joint effort and including financial and human

resources, were submitted to various financing organizations 

for possible funding.

A PV water pumping system was installed on a small farm 

(15 acres). The system is powered by a 3-kW stand-alone PV

system and used for irrigation on the farm 70 miles northwest

of Cairo. It was financed through a private sector financing

company. The effort was coordinated by NREL through a local

NGO. The long-term objective of the project is to prove the

economic viability of PV without a subsidy.

A collaborative project for placing PV electricity systems in

the Sinai region of Egypt has been proposed by NREL and the

Egyptian Rural Electrification Authority (REA). They are working in cooperation with the Renewable Energy and Environment Society, and the NREA. The proposal addresses the critical

rural electrification needs in Egypt, specifically in the remote

villages of Sinai and along the northern coast of Egypt. Individual residences will receive solar home power systems. In

addition to the solar home systems, each chosen village will

be evaluated for the possibility of a village community water

pumping system.

Using PV for rural electrification is a departure from the utility's normal line extension activities. This pilot project will

demonstrate the technical and economic feasibility of providing basic electric service to customers well beyond the area

covered by economical extension of power lines. The project

is not only a technical demonstration project, but more

importantly, it is a model for establishing a financing scheme

Photovoltaic Electricity in Egypt

by Roger Taylor and Fuad Abulfotuh 12/97
where farmers repay the cost of the PV systems over an

extended period of time (8–10 years). Information acquired

from the project will help to answer the following questions: 

• How stand-alone PV service compares (technically and 

economically) to conventional utility line extensions for 

rural electrification in Egypt

• How do the economics of PV compare to power provided 

by on-site diesel generation for new and existing loads

• What is the optimum mix of domestic (Egyptian) and 

imported (U.S.) components

• What is required for the REA to be interested in providing 

this type of service, and how will providing the PV service 

affect utility operations

• Will Egyptian Electric Authority (EEA) and REA accept financing of the capital cost of PV service as an option to conventional line extensions

• Can EEA and REA be effective institutional mechanisms for 

implementing solar-based rural electrification?

NREL Contacts

Web site: http://www.rsvp.nrel.gov

Roger Taylor

phone: (303) 384-7389

e-mail: roger_taylor@nrel.gov

Fuad Abulfotuh

phone: (303) 384-6601

e-mail: fuad_abulfotuh@nrel.gov

Produced by the National Renewable Energy Laboratory, a U.S.

Department of Energy national laboratory.

Printed with renewable source ink on paper containing at least 50%

wastepaper, including 20% postconsumer waste.

NREL/FS-510-24193
Village Power Bibliography

This is not a comprehensive list.

You can locate the abstracts for these publications on the NREL Web Site (www.nrel.gov) and the

RSVP Web Site (www.rsvp.nrel.gov), or you can receive full-text copies from

 National Technical Information Service (NTIS)

U.S. Department of Commerce

5285 Port Royal Road

 Springfield, VA 22161

 Phone: 703-487-4650

Baring-Gould, E. I. (1996). Hybrid2 Version 1.0 User Manual. NREL/TP-440-21272. Golden, CO:

National Renewable Energy Laboratory.

Baring-Gould, E. I., Barley, C. D., Drouilhet, S., Flowers, L., Jimenez, T., Lilienthal, P., Weingart, J.,

Soetendro, H., & Gultom, D.P. (1997). "Diesel Plant Retrofitting Options to Enhance Decentralized

Electricity Supply in Indonesia." NREL/CP-440-23237. Presented at Windpower '97, Austin, TX,

15-18 June 1997.

Baring-Gould, E. I., Green, H. J., van Dijk, V.A.P., & Manwell, J. (1996). "Hybrid2 - The Hybrid

Power System Simulation Model." NREL/TP-440-21506. Prepared for AWEA Windpower '96,

Denver, CO, 23-27 June 1996.

Barley, C. D. (1996). Modeling and Optimization of Dispatch Strategies for Remote Hybrid Power

Systems. Ph.D. Thesis. Fort Collins, CO: Colorado State University.

Barley, C. D., Lew, D. J., & Flowers, L. (1997). "Sizing Wind/Photovoltaic Hybrids for Households in

Inner Mongolia." NREL/CP-440-23116. Presented at Windpower '97, Austin, TX,

15-18 June 1997.

Barley, C. D., Winn, C.B., Flowers, L., & Green, H. J. (1995). "Optimal Control of Remote Hybrid

Power Systems Part 1: Simplified Model." NREL/TP-441-7806. Prepared for Windpower '95,

Washington, D.C., 27-30 March 1995.

Burch, J. D. & Thomas, K. E. (1998). Overview of Water Disinfection in Developing Countries and

the Potential for Solar Thermal Water Pasteurization. NREL/TP-550-23110. Golden, CO: National

Renewable Energy Laboratory.

Cardinal, J., Flowers, L., Taylor, R., & Weingart, J. (1997). Proceedings of Village Power '97.

14-15 April, 1997, Arlington, VA. NREL/CP-440-23409. Golden, CO: National Renewable Energy

Laboratory; 521 pp.

####1DWLRQDO 5HQHZDEOH (QHUJ\ /DERUDWRU\
National Renewable Energy Laboratory z 1617 Cole Boulevard z Golden, Colorado 80401-3393 z (303) 275-3000

NREL is a national laboratory of the U.S. Department of Energy operated by the Midwest Research Institute

5

Castedo, S., Barrera, J., Suarez, G., Flowers, L., & Corbus, D. (1995). "Renewable Energy Options

for the Electrification of Rural Schools in Argentina." Windpower '95: Proceeding of the Annual

Conference and Exhibition of the American Wind Energy Association, 26-30 March, 1995,

Washington, D.C.

Corbus, D. & Bergey, M. (1997). "Costa de Cocos 11-kW Wind-Diesel Hybrid System."

NREL/CP-440-23296. Presented at Windpower '97, Austin, TX, 15-18 June 1997.

Corbus, D., Green, H. J., Allderdice, A., Rand, K., & Bianchi, J. (1996). "Testing of a 50-kW WindDiesel Hybrid System at the National Wind Technology Center." NREL/TP-440-21499. Prepared for

AWEA Windpower '96, Denver, CO, 23-27 June 1996.

Davis, H.C. (1994). Wind-Electric Ice Making for Developing World Villages. Master's Thesis.

Palo Alto, CA: Stanford University.

Davis, H., Brandemuehl, M., & Bergey, M. (1995). "Performance of a Stand-Alone Wind-Electric Ice

Maker for Remote Villages." NREL/TP-441-7223. Prepared for Fourteenth ASME-ETCE Wind

Energy Symposium, Houston, TX, 29 January -1 February 1995.

Drouilhet, S., Meiners, D., & Reeve, B. (1996). "A High-Penetration Wind-Diesel Hybrid Power

System Pilot Project in Northwest Alaska." Prepared for Powersystems World '96, Las Vegas, NV,

7-13 September 1996.

Drouilhet, S., Muljadi, E., Holz, R., & Gevorgian, V. (1995). "Optimizing Small Wind Turbine

Performance in Battery Charging Applications." NREL/TP-441-7808. Prepared for Windpower '95,

Washington, D.C., 27-30 March 1995.

Flowers, L. (1997). "Renewables for Sustainable Village Power." NREL/CP-440-22608. Prepared for

the International Conference on Village Electrification through Renewable Energy, New Delhi,

3-5 March 1997.

Flowers, L. (1998). "Lessons Learned - NREL Village Power Program." NREL/CP-500-24938.

Presented at Windpower '98, Bakersfield, CA, 27 April- 1 May 1998.

Flowers, L., Green, H. J., Bergey, M., Lilley, A., & Mott, L. (1994). "Village Power Hybrid Systems

Development in the United States." NREL/TP-442-7227. Prepared for European Wind Energy

Conference, Thessaloniki, Greece, 10-14 October 1994.

Flowers, L., Rackstraw, K., Bergey, M., Lilley, A., & Pate, R. (1993). "Decentralized Wind Electric

Applications for Developing Countries." Prepared for Windpower '93, San Francisco, CA,

12-16 July 1993.

Gevorgian, V., Corbus, D., Drouilhet, S., Holz, R., & Thomas, K. E. (1998). "Modeling, Testing and

Economic Analysis of Wind-Electric Battery Charging Station." NREL/CP-500-24920. Presented at

Windpower '98, Bakersfield, CA, 27 April - 1 May 1998.
National Renewable Energy Laboratory z 1617 Cole Boulevard z Golden, Colorado 80401-3393 z (303) 275-3000

NREL is a national laboratory of the U.S. Department of Energy operated by the Midwest Research Institute

6

Green, H. J. (1996). Hybrid Power Test Bed. NREL/SP-440-20496. Golden, CO: National Renewable

Energy Laboratory.

Green, H. J., Clark, R. N., Brothers, C., & Saulnier B. (1994). "Wind/Hybrid Power System Test

Facilities in the United States and Canada." NREL/TP-441-6626. Prepared for Windpower '94,

Minneapolis, MN, 9-13 May 1994.

Holz, R.G. (1995). Wind-Electric Icemaking Project: Phase II. Master's Project. Boulder, CO:

University of Colorado.

Holz, R., Baring-Gould, E. I., Corbus, D., Flowers, L., & McAllister, J. A. (1997). "Initial Results

from the Operation of Village Hybrid Systems in Chile." NREL/CP-440-23436. Presented at

Windpower '97, Austin, TX, 15-18 June 1997.

Holz, R., Corbus, D., Aguilar, I., & Hurley, P. (1995). "Hourly Simulations of Hybrid Renewable

Energy Systems for San Cristobal/Santa Barbara, Guatemala." NREL/TP-463-7230. Prepared for

Fourteenth ASME-ETCE Wind Energy Symposium, Houston, Texas, 29 January - 1 February 1995.

Holz, R., Drouilhet, S., & Gevorgian, V. (1998). "Wind-Electric Ice-Making Investigation."

NREL/CP-500-24662. Presented at Windpower '98, Bakersfield, CA, 27 April- 1 May 1998.

Holz, R., Gevorgian, V., Drouilhet, S., & Muljadi, E. (1998). Wind Electric Icemaking Project:

Analysis and Dynamometer Testing. Vols. I & II. NREL/TP-500-24010. Golden, CO: National

Renewable Energy Laboratory.

Jimenez, A.C. (1998). Optimal Design of Stand Alone Power Systems for Remote Rural Health

Facilities. Master's Thesis. Fort Collins, CO: Colorado State University.

Lambert, T.W. (1997). Optimization of Autonomous Village Electrification Systems by Simulated

Annealing. Master's Thesis. Fort Collins, CO: Colorado State University.

Lew, D. J., Barley, C. D., & Flowers, L. (1997). "Hybrid Wind/Photovoltaic Systems for Households

in Inner Mongolia." Prepared for the International Conference on Village Electrification through

Renewable Energy, New Delhi, 3-5 March 1997.

Lew, D. J., Corbus, D., Holz, R., Flowers, L., & McAllister, J. A. (1996). "Analysis of Village Hybrid

Systems in Chile." NREL/TP-440-21275. Prepared for AWEA Windpower '96, Denver, CO, 23-27

June 1996.

McGowan, J. G., Manwell, J., Avelar, C., & Warner, C. (1996). "Design and Evaluation of Hybrid

Wind/PV/Diesel Power Systems for Brazilian Applications." Windpower 1996: Proceedings of the

American Wind Energy Association Conference, 23-27 June 1996, Denver, CO.
National Renewable Energy Laboratory z 1617 Cole Boulevard z Golden, Colorado 80401-3393 z (303) 275-3000

NREL is a national laboratory of the U.S. Department of Energy operated by the Midwest Research Institute

7

Muljadi, E., Flowers, L., Green, J., & Bergey, M. (1996). "Electric Design of Wind-Electric Water

Pumping Systems." Journal of Solar Energy Engineering: Transactions of the American Society of

Mechanical Engineers (118:4); pp. 246-252.

Niewoehner, J., Larson, R., Azrag, E., Hailu, T., Horner, J., & VanArsdale, P. (March 1997).

Opportunities for Renewable Energy Technologies in Water Supply in Developing Country Villages.

NREL/ SR-430-22359. Golden, CO: National Renewable Energy Laboratory. 

Olson, K. & Jimenez, A.C. (1998). Renewable Energy for Rural Health Clinics.

NREL/BK-500-25233. Golden, CO: National Renewable Energy Laboratory.

Shirazi, M. & Drouilhet, S. (1997). "An Analysis of the Performance Benefits of Short-Term Energy

Storage in Wind-Diesel Hybrid Power Systems." NREL/CP-440-22108. Prepared for 1997 ASME

Wind Energy Symposium, Reno, NV, 6-9 January 1997.

Thomas, K. E. (1997). Overview of Village Scale, Renewable Energy Powered Desalination.

NREL/TP-440-22083. Golden, CO: National Renewable Energy Laboratory.









July 1998 ! NREL/CP-520-25032

Lessons Learned from the NREL

Village Power Program

R.W. Taylor

Presented at the 2nd World Conference and Exhibition on

Photovoltaic Solar Energy Conversion; 6-10 July 1998; Vienna, Austria

National Renewable Energy Laboratory

1617 Cole Boulevard

Golden, Colorado 80401-3393

A national laboratory of the

U.S. Department of Energy

Managed by the Midwest Research Institute

For the U.S. Department of Energy

Under Contract No. DE-AC36-83CH10093
LESSONS LEARNED FROM THE NREL VILLAGE POWER PROGRAM

R. W. Taylor

National Renewable Energy Laboratory

1617 Cole Blvd., Golden, CO, USA

ABSTRACT: Renewable energy solutions for village power applications can be economical, functional, and

sustainable. Pilot projects are an appropriate step in the development of a commercially viable market for rural

renewable energy solutions. Moreover, there are a significant number of rural electrification projects under way that

employ various technologies, delivery mechanisms, and financing arrangements. These projects, if properly

evaluated, communicated, and their lessons incorporated in future projects and programs, can lead the way to a future

that includes a robust opportunity for cost-effective, renewable-based village power systems. This paper summarizes

some of NREL’s recent experiences and lessons learned.

Keywords: Sustainable – 1: Developing Countries – 2: Villages – 3

1. BACKGROUND

Following the Earth Summit in June 1992, held in

Rio de Janeiro, Brazil, the U.S. Department of Energy’s

National Renewable Energy Laboratory (NREL) became

seriously engaged in assisting with the introduction and

integration of renewable technologies in developing

countries. In 1993, a workshop was convened at NREL

with 33 representatives from the private sector,

government agencies, development organizations,

nongovernment organizations, and research institutions to

discuss the issues of applying renewable energy in a

sustainable manner to international rural development. A

summary recommen-dation was that NREL could assist in

renewable energy-based rural electrification (RERE) by

developing and supporting six related activities: resource

assessment, comparative analysis and modeling,

performance monitoring and analysis, pilot project

development, Internet-based project data communications,

and training. Thus was born the NREL Village Power

Program consisting of activities that cut across several

renewable technologies and have grown to include a wide

range of technical, economic, and social disciplines.

Currently, NREL is active in 20 countries, and is

supporting pilot projects in 12 of those countries.

Technologies presently include photovoltics, wind,

biomass, and hybrids; increasing emphasis on small

geothermal and small hydro are on the horizon. The

remote rural applications include home, communications,

water pumping, school and health clinic, battery charging,

ecotourism, and village minigrid hybrid power systems.

While considerable effort has been devoted to

developing new computer models for economic analysis,

training and working with in-country partners, and

gathering and documenting not only NREL experiences,

but also experiences of others, it is the facilitation of pilot

projects that counts most. Pilot projects are more than

mere technical demonstrations—they are central to

renewable energy-based village power development. By

and large, it has been shown that renewable technologies

work. The most important aspects of pilot projects are

their inherent ability to engage in-country partners in

hands-on experience that can lead to not only technical,

but economic and institutional sustainability as well.

It is important to note that many of the pilot projects

from which NREL’s experience has been gained were

funded, and in many cases developed, by other

organizations and agencies. NREL has provided a variety

of services including technical, economic, regulatory, and

project management assistance to a wide range of

projects.

The purpose of this paper is to describe the lessons

NREL staff have gleaned from their participation in the

various pilot projects. We hope that these lessons will

help the RERE community to implement increasingly

more-sustainable projects that lead to widespread

replication.

2. APPROACH

The approach used to document the lessons was to

poll eight key NREL Village Power team members who

have been involved in the development, implementation,

and evaluation of renewable-based pilot projects.

Consolidating this information, an attempt has been made

to look for common themes, while maintaining the variety

of experiences. The following four categories were chosen

as a way to capture our experiences: institutional aspects,

pilot project characteristics, implementation processes,

and technology development needs.

3. LESSONS LEARNED

3.1 Institutional Aspects

Reliable, well-designed, and integrated technology is

important, but it is the institutional aspects of a project

that make or break long term sustainability.

Partnering. Establishing an effective working

relationship with a capable, credible in-country champion

is critical to project success. In-country partners

understand the local legal, political and social context.

However, recognize that partner capabilities and interests

may change over time. State-owned electric utilities that

are sold to private sector, for profit institutions can

undergo a dramatic swing in interest and support.

Maintenance. Nothing is maintenance-free,

therefore, a maintenance support infrastructure needs to

be established and nurtured. This issue must be addressed

from the very conception of a project. It need not be

complex, but it does need to be functional and appropriate

for the size, complexity, and sophistication of the systems

deployed. A training program with documentation that is

matched to the local capabilities, regular refreshers,

personnel turnover, a spare parts’ inventory and supply

information, and funds for preventive and problem

maintenance must all be addressed.
Tariff design (grid systems). Developing world

rural tariffs for grid-connected systems are often heavily

subsidized and send the wrong price signals. While rural

subsidies may be appropriate in some cases, the tariff

design needs to reflect both the actual cost and quality of

service. Multilevel or stepped tariff designs are

particularly important in cases where 24 hour, ac service

with renewable hybrids is subsidized due to the large

swings in short-run marginal cost. The technical

(metering) and institutional (meter reading and billing)

costs of grid connected line extension or minigrids need to

be evaluated when considering the tradeoffs between grid

power and small stand-alone systems.

Tariff design (stand-alone systems). In small

stand-alone systems for homes, schools, health clinics,

water pumping, and other applications, strong efforts need

to be made to decouple the concepts of electricity sales

measured in ¢/kWh from fee-for-service monthly

payments. Many rural customers are already paying

US$5-15/month for basic energy services that can be

better met with stand-alone renewable energy systems

(and without subsidies). It is often difficult to convince

electric utilities and other local officials to think about an

energy-services approach.

Development coordination. Most countries have

significant rural development programs including

education, health, communications, economic

development, agriculture, water, and electricity. The links

among these programs and the supporting agencies are

potentially substantial, and currently underutilized. Rural

electrification, does not, in and of itself, create rural

economic development. Linking programs is important

for overall success.

Planning tools. Rural electrification planning

methodologies and policies generally do not integrate and

evaluate renewable energy solutions fairly, if they are

recognized at all. While pilot projects seldom need to be

formally evaluated, up front, by the planning agencies,

pilot projects can provide important input to these

agencies to further enhance their adoption of renewables

as a viable option. There needs to be a conscious effort to

work with planning agencies to modify their evaluation

methods to fairly accommodate renewable energy

solutions.

Economics. Because rural electrification generally

consists of line extension or diesel minigrids based on an

annual budget for installations, the concept of life-cycle

cost analysis, which fairly compares capital intensive and

operating-expense intensive technologies, is uncommon.

The concept of life-cycle costing needs to be integrated

into the training of planning officials.

Language. Many expectations have not been met

because of misunderstanding resulting from language and

culture differences rather than nonperformance. It is

particularly important in pilot projects to emphasize open

and complete communications.

3.2 Pilot Project Characteristics

Pilot projects are more than just technical

demonstrations. The most successful pilot projects seek

to create an environment that can lead to future

replication.

Performance. First and foremost, the project must

perform well technically. To this end, extra care and

expense should be devoted to the design, construction,

commissioning, robustness, and reliability of the pilot

system. In pilot projects, robustness and reliability are

more important than energy-conversion efficiency. Resist

the temptation to field the “latest and greatest” until it has

been thoroughly tested under controlled conditions.

Repairing equipment in remote locations is difficult and

expensive.

Energy efficiency. Energy-efficient end-use

applications/appliances are critical to economically sized

renewable energy systems. Investments in energy

efficiency have much more economic value than adding

generation capacity to meet the demand of inefficient

appliances. It is important that a complete systems

engineering approach be maintained, attempting to deliver

the best end-use service for the least overall system cost.

Retrofitting expensive hybrid power systems in a village

without first addressing end-use appliances is a mistake.

Quality of service. Along with the issue of energy

efficiency comes the issue of quality of service. Examples

include: electric lighting provides better light than from

kerosene wick lamps; 24-hour service is preferred to 4-6

hour service; reliable, available electricity is more valued

than an unreliable supply. These differences in quality of

service should be reflected in comparing alternative

solutions.

Replication mind-set. Pilot projects need to be

designed technically and conceptually, with the

commercial replication path in mind. Pilot projects that

cannot be replicated in the region commercially serve

only as technology demonstrations with far less value to

the existing electrification program than those designed to

feed into a national rural electrification plan. It is

important to ask the question: “If the pilot project is

successful, what is the likelihood that a commercial

solution will follow?” If the answer is “none,” rethink the

rational for the project.

One-of-a-kind demonstrations. Single projects in

remote locations are not sustainable. While it is tempting

from a budgetary perspective to do single projects, they

quickly become operation and maintenance (O&M)

nightmares. Multiple systems in a region are required to

develop and sustain the necessary support infrastructure.

Single-unit technical demonstrations do have their place.

Make sure they are in a place that they can be maintained,

or removed, when the demonstration is over.

Loads. Estimating electric loads for newly electrified

villages is difficult, often resulting in overdesign, wasted

energy, and poor economics. Estimating load growth in

villages receiving ac power for the first time is equally

difficult. Integrating deferrable and discretionary loads

helps system economics, but is difficult in practice.

Designing modular systems that can be incrementally

grown as village loads increase needs more attention.

Incorporating these issues into planning models is equally

challenging.

Diesel retrofits. It is often more economical (from a

life-cycle cost perspective) to install a new, appropriately

sized diesel than to use the existing, oversized, poorly

maintained one. However, local authorities and

renewable energy equipment suppliers resist scrapping the

existing diesel because the new diesel reduces the capital

available for the nonconventional equipment.

Performance monitoring. Pilot projects, unlike

commercial projects, are explicitly intended, based on

their performance, to lead to larger scale replication. To

this end, they need to be instrumented to confirm energy

and operational performance. They also need to be

evaluated for institutional response and effectiveness.

The results of these evaluations need to be communicated
to both the local and international development

communities so that technical and nontechnical lessons

can be adapted in the replication process.

Buy-down. Because pilots generally introduce new

technical solutions to regional authorities, it is often

necessary to cost-share the initial project. However, it is

important to require significant cost-sharing by the

implementing/operating organization to assure partner

commitment and capture management attention.

3.3 Implementation Process

Pilot projects help country programs obtain firsthand

experience that may lead to widespread adoption of

renewable energy technology in the rural electrification

process.

Political will. The most important factor for

successful implementation is a supportive, positive

attitude by the rural electrification officials. The existence

of a champion for renewables for rural services who is in

a position of authority keeps up the momentum during the

extended process of resource assessment, site selection,

project design implementation, evaluation, and

replication. There is no substitute to a dedicated,

influential, local champion.

Duration. The time from initial interest in

renewables to commercial replication takes 4-6 years, in a

positive climate. The pilot phase usually takes 2-3 years

from site selection through initial evaluation. Pilot

projects are part of a long-term process of change. Initial

commitments should be coupled with the realization that

long-term collaborations are a key to successful programs.

Commercial replication. The transition from the

pilot phase to commercial replication can be difficult.

The transition is greatly aided by a well-funded pilot

phase that includes multiple, regional projects; local

capacity building; strong engagement and commitment by

a commercial partner; and substantial technical assistance.

The transition usually means a change from primarily

sponsor-driven activities to business-driven activities.

The more the pilot project can be set up to look and act

like a business, the easier the transition.

Needs-driven approach. Renewable energy

solutions to rural electrification should be resource- and

need-driven, rather than based on a specific

technology/application. The available renewable

resources, the village electrical demand and applications,

villager willingness and ability to pay for electrical

service, and the economics of alternatives should

determine the appropriate solutions. It is important to be

objective and neutral in evaluating and presenting options.

It is important to let the locals participate, and select,

appropriate solutions.

Administration. In order to sustain a newly

implemented rural electricity system, an administrative

system needs to be developed and sustained. Many rural

villages have formed cooperatives for fishing, agriculture,

and other economic development activities. The specific

electricity administrative solution will be regional or

village dependent or both. While a number of models

have been successful, care is needed in matching the

administrative system to the village social dynamics.

3.4 Technology and Development Needs

While it is essential to deploy only commercial

technology in pilot projects, it is fair to say that there are

opportunities for technological improvement in

components, systems, ancillary equipment, and supporting

processes.

Hybrid systems. While wind, PV, and micro-hydro

have been commercial technologies for a number of years,

their hybridization with fossil fuel generators for rural

applications are an emerging technology. Renewable

energy-fossil hybrids have their roots in telecommunications applications in remote sites; however, the

extremely high-value electricity for telecommunications

applications has resulted in expensive, extreme reliability

designs that are inappropriate for rural electricity service.

While there are tens of thousands of isolated diesel

generators deployed throughout the world, village hybrid

system sales are infinitesimal at this stage because the

design, manufacturing, integration, implementation, and

distribution segments of the industry are very sparse and

immature. This results in high prices, costly

implementation and support, and rapidly evolving

designs. Hybrid systems are a potentially significant

solution to rural ac electricity needs, but further

technology development and industry expansion will be

required.

Controls. Electronic controls and converters are the

least robust component in the reliability/robustness chain.

While there have been significant improvements in the

quality and functionality of these components over the last

5-years, they remain the chief cause of system problems.

Complicating the issue is the lack of maintenance support

capacity for these components in rural areas. Robustness

and modular electronics need to be the focus of controls

development; in addition, spare parts and development of

electronic service capacity need to be part of any pilot

project.

Lightning/corrosion. Many developing countries’

rural applications are exposed to severe corrosion and

electrical storm conditions. While much is known about

lightning and corrosion protection of electrical

components, in many cases conventional solutions for

high-value electrical systems are neither cost-effective nor

appropriate for rural systems. Cost-effective application

engineering is required for corrosive and electrical stormsensitive environments.

Meters. Metering and billing are often a problem.

Prepayment meters may greatly increase the sustainability

of mini-grid systems. While several prepayment meter

designs are commercial, they need to be less expensive in

order to receive serious international attention.

Resource data. Wind resource data for rural areas

are either nonexistent or of marginal quality, yet are

critically important for comparing wind-based systems to

other options. Wind mapping, using various existing

meteorological and geographic databases and customized

computer models, has enhanced the ability to evaluate

wind as an option. Existing solar databases are sufficient

for estimating PV as an option. There is an increasing use

of GIS-based census and demographic data in the

developing world for grid extension planning. There is an

opportunity to combine resource mapping and GIS-based

rural planning models for determining the opportunity and

the best locations for renewable village electrification.

Integrators/packaged systems. Because the market

for rural renewables is just emerging, the role of system

integration is underdeveloped. There are a number of

component and system suppliers, but the function of

system integration (comparing and packaging alternative

architectures and solutions, along with due attention to

load efficiency and demand-side options) is very limited,
especially as an in-country capability. While integrated,

packaged systems have certain commercial and functional

benefits, they (and their supply) are premature; therefore,

the market will need to develop further to attract/enhance

the integration function.

4. SUMMARY

Renewable energy solutions for village power

applications can be economical, functional, and

sustainable. Pilot projects are an appropriate step in the

development of a commercially viable market for

renewable rural solutions. Moreover, there are a

significant number of rural electrification projects under

way that employ various technologies, delivery

mechanisms, and financing arrangements. These projects,

if properly evaluated, communicated, and their lessons

incorporated in future projects and programs, can lead the

way to a future that includes a robust opportunity for costeffective, renewables-based village power systems.

ACKNOWLEDGEMENTS

This paper was made possible by generous contributions

from key members of NREL’s Village Power team. Led

by Larry Flowers, team leader, other members include Ian

Baring-Gould, David Corbus, Steve Drouilhet, Vahan

Gevorgian, Rick Holz, Peter Lilienthal, and the author.
1/18/99 Page 1 of 64

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Clement Abavana Serge Adamian

Volta River Authority Ecotrade, Inc.

P.O. Box M.77 220 S. Kenwood Street

Accra Suite 305

Ghana Glendale, CA 91205-1671

Phone: 233-21-223781 Phone: (818) 240-4500

Fax: 233-21-223781 Fax: (818) 240-4501

EMail: abavana@ghana.com EMail: svadamian-ecotrade@worldnet.att.net

Richard Abbott Valerie Adams

PowerJet Corporation Siemens Westinghouse

43 Foxcroft Drive 4400 Alafaya Trail

Princeton, NJ 08540 Orlando, FL 32826

Phone: (609) 924-9265 Phone: (407) 281-5184

Fax: (609) 924-3484 Fax: (407) 281-5014

EMail: rabbott106@aol.com EMail: valerie.adams@swpc.siemens.com

Clark Abt Anuja Adhar

ABT Associates, Inc. World Bank

19 Follen Street 1818 H Street, NW

Cambridge, MA 02138 Room G-4-135

Phone: (617) 876-2835 Washington, DC 20433

Fax: (617) 234-0007 Phone: (202) 473-6623

EMail: clarkabt@aol.com Fax: (202) 522-1492

EMail: aadhar@worldbank.org

Thomas Acker

Northern Arizona University Peter Ahm

McConnell Circle, Bldg. 69 PA Energy Ltd

PO BOX 155600 Snovdrupve 16

Flagstaff, AZ 86011-5600 Malling 8340

Phone: (520) 523-8363 Denmark

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Mahmoud Al-Hadidi Brent Alderfer

Ministry of Water & Irrigation CO Public Utilities Commission

P.O. Box 224 1580 Logan Street

Al-Salt 19110 Office Level 2

Jordan Denver, CO 80203

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Fax: Fax: (303) 894-2065

EMail: mahmoud_hadidi@mwi.gov.jo EMail: brent.alderfer@dora.state.co.us

Maurice Alarie Scott Aldous

Partners in Rural Development North Carolina Solar Center

323 Chapel Street NC State University

Ottawa, Ontario J9A2E3 P.O. Box 7401

Canada Raleigh, NC 27695-7401

Phone: (613) 237-0180 x203 Phone: (919) 515-3480

Fax: (613) 237-5969 Fax: (919) 515-5778

EMail: malarie@partners.ca EMail: scott_aldous@ncsu.edu

Maury Albertson Juan-Carlos Alegre

Colorado State University EPBAS, Inc.

731 W. Olive Street 10100 Nadine Drive

Ft. Collins, CO 80521 Vienna, VA 22181

Phone: (970) 482-4613 Phone: (703) 598-7506

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Yves Albouy April Allderdice

World Bank National Renewable Energy Lab

1818 H Street, NW 1617 Cole Boulevard

Room F-2K-158 Golden, CO 80401

Washington, DC 20433 Phone: (303) 417-0949

Phone: (202) 473-1690 Fax: (303) 384-7092

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Michael Allen Robert Annan

E&Co Consultant

383 Franklin Street 6605 E. Evening Glow Drive

Bloomfield, NJ 07003 Scottsdale, AZ 85262

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Daniel Alway Walter Aransberg

Low Keep Refrigeration Inter-American Development Bank

24651 Second Avenue 1300 New Youk Ave

Otsego, MI 49078-9406 MS-W-500

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PERI Doug Arent

1700 Rockville Pike Energy & Environmental Strategies

Suite 550 12009 Blackhawk Drive

Rockville, MD 20852 Conifer, CO 80433

Phone: (301) 468-8414 Phone: (303) 838-1596

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Gwendolyn Andersen Neway Argaw

Powercom Associates National Renewable Energy Lab

8218 Garland Avenue 1617 Cole Blvd

Takoma Park, MD 20912 Golden, CO 80401

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John Anderson

National Renewable Energy Lab

1617 Cole Boulevard

Golden, CO 80401

Phone: (303) 384-7422

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Hugo Arriaza Omar Awwad

Consultant Palestinian National Authority

14 Calle 13-56 Z.10, Oakland P.O. Box 660

Guatemala Ramallah

Guatemala Israel

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Dan Arvizu Jorge Ayarza

CH2M HILL AWEA

6060 S. Willow Drive 122 C Street, NW

Greenwood Village, CO 80111 Washington, DC 20001

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Wendy Aulakh Chadraa Baataryn

SunLight Power International Mongolian Academy of Science

1800 M Street, NW Sukhabaatar Sq. 3

Suite 300 P.O. Box 70

Washington, DC 20036 Hlaanbaatar 11

Phone: (202) 293-6238 Mongolia

Fax: (202) 223-5537 Phone: 976-1-322216

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Rahul Aurora

Winrock International-REPSO Samuel Baldwin

No. 7, Poorv Marg National Renewable Energy Lab

Vasant Vihar 409 12th Streew SW, Suite 710

New Delhi 110 057 Washington, DC 20024

India Phone: (202) 651-7542

Phone: 91-11-614-2965 Fax: (202) 651-7502

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7221 Cedar Ave Consultant

Takoma Park, MD 20912 33 South Down Avenue

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Alain Barbu

World Bank

1818 H Street, NW Gary Barnett

Washington, DC 20433 City of San Jose

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National Renewable Energy Lab

1617 Cole Blvd. Marion Barritt

Golden, CO 80401 Sunrise Sustainable Resources Group

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World Bank

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Washington, DC 20433 Econerge International Corp.

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Kenneth Barnes EMail: bartholf@eic-co.com

Consultant

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Cupertino, CA 95014

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Grameen Bank Bergey WindPower Co.

Mirpur-2 2001 Priestley Ave.

Dhaka 1216 Norman, OK 73069

Bangladesh Phone: (405)-364-4212

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Noreen Beg World Bank

World Bank 1818 H Street, NW

1818 H Street, NW MC(-439

Washington, DC 20433 Washington, DC 20433

Phone: (202) 473-3178 Phone: (202) 473-1132

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Elias Behar Pierre Betonus

Siemens Solar Bureau of Mines & Energy

6909 Southwest 18th Street 14, Rue Nina

Suite 301 Delmas 19

Boca Raton, FL 33433 Port-au-Prince

Phone: (561) 416-7206 Haiti

Fax: (561) 362-5513 Phone: 509-461517

EMail: elias.behar@solar.siemens.com Fax: 509-462459

EMail: bpierre.bme@rehred.haiti.net

Abdelhanine Benallou

SunLight Power Marocco Sean Blaylock

2 Avenue de Marrakech GNB Technologies

Rabat Industrial Battery Company

Morocco 829 Parkview Blvd.

Phone: 212-7-661032 Lombard, IL 60148

Fax: 212-7-661037 Phone: (630) 932-3750

EMail: sunlightmaroc@mail.sis.net.ma Fax: (630) 629-2635

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Richard Blieden Martin Booth

United Solar Systems Corp. Geothermal Energy Association

1100 West Maple Road 251 Ralston Street

Troy, MI 48084 Reno, NV 89503

Phone: (248) 362-3120 Phone: (702) 322-0938

Fax: (248) 362-4442 Fax: (702) 322-1320

EMail: rblieden@ic.net EMail: mbooth@gda.reno.nv.us

Sandy Boizelle Philip Bouverat

PEER Africa (Pty) Ltd. Intersolar Group Ltd.

12300 Twinbrook Parkway Cock Lane

#410 High Wycombe

Rockville, MD 20852 Bucks HP 13 7DE

Phone: (301) 816-0700 United Kingdom

Fax: (301) 816-9291 Phone:

EMail: boizells@peercpc.com Fax:

EMail:

Warren Bollmeier

WSB-Hawaii Noureddine Bouzaher

46-040 Konane Place #3816 World Bank

Kaneohe, HI 96744 1818 H Street, NW

Phone: (808) 247-7753 Washington, DC 20433

Fax: (808) 247-7753 Phone: (202) 473-9760

EMail: wsb@lava.net Fax: (202) 473-5123

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Curt Bolton

U.S. Department of Energy Carolyn Breslin

19924 Wyman Way IFC

Germantown, MD 20874 2121 Pennsylvania Ave., NW

Phone: (301)-903-4914 Washington, DC 20433

Fax: (301) 903-4716 Phone:

EMail: bolton@er.doe.gov Fax:

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James Bond

World Bank

Washington, DC 20433

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Daniel Brisard Gary Burch

Ministere of Public Works U.S. Department of Energy

147 Rue Des Miracles 1000 Independence Ave., SW

Port-Au-Prince Washington, DC 20585

Haiti Phone: (202)-586-0081

Phone: 509-23-5195 Fax: (202)-586-5127

Fax: 509-23-4798 EMail:

EMail:

Lisa Buttner

Donella Bryce Winrock International

APACE 1611 N. Kent Street

P.O. Box 123 Arlington, VA

Broadway Phone: 011-53-961-50063

Sydney NSW 2007 Fax:

Australia EMail: lbuttner@spryent.com

Phone: 61-2-9514-2554

Fax: 61-2-9514-2611

EMail: apace@uts.edu.au Clive Caffall

UK Department for Int'l Development

94 Victoria Street

Paul Bryce London SWIE SJL

APACE United Kingdom

University of Technology Phone: +44-171-917-0541

P.O. Box 123 Broadway Fax: +44-171-917-0072

Sydney 2007 EMail: c-caffall@dfid.gtnet.gov.uk

Australia

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Fax: 61-2-9514-2435 Kathleen Campbell

EMail: paul.bryce@uts.edu.au National Renewable Energy Lab

1617 Cole Boulevard

Golden, CO 80401

Alec Bulawka Phone: (303) 384-7444

U.S. Department of Energy Fax: (303) 384-7411

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Washington, DC 20585

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Michael Campilongo Julie Cardinal

U.S. Small Business Administration National Renewable Energy Lab

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Suite 7200 Golden, CO 80401

Washington, DC 20416 Phone: (303) 384-7019

Phone: (202) 205-6879 Fax: (303) 384-7097

Fax: (202) 205-6846 EMail: julie_cardinal@nrel.gov

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Danilo Carranza

Penelope Canan NRECA, International

University of Denver 4301 Wilson Blvd.

Environment Institute Arlington, VA 22203-1860

2300 S. York Phone: (703) 907-5500

Denver, CO 80208 Fax: (703) 907-5532

Phone: (303) 871-2049 EMail: d_carranza@compuserve.com

Fax: (303) 871-4585

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Peter Carrie

Photovoltaics International, LLC

Jian Cao 171 Commercial Street

Low Keep Refrigeration Sunnyvale, CA 94086

P.O. Box 409 Phone: (408) 746-3062

Fennville, MI 49408 Fax: (408) 746-3890

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Javier Castillo

CNE

Marie-Louise Caravatti P.O. Box Casilla 719

U.S. Department of Energy Puerto Varos

1000 Independence Avenue, S.W. Chile

EE-1 Phone: 56-65-283192

Washington, DC 20585 Fax:

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Elizabeth Cecelski Gabriela Cisneros

EED Southwest Tech. Dev. & Institute

Bahnstrasse 24 P.O. Box 30001

Wipperfuerth D-51688 Dept. 3 Solar

Germany Las Cruces, NM 88003

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Fax: 49-2267-880762 Fax: (505) 646-2438

EMail: ececelski@t-online.de EMail: gcisnero@nmsu.edu

David Cerqueira Joy Clancy

Fundacao Teotonio Vilela University of Twente

Rua Dr. Sebastiao da Hora 71, Gruta P.O. Box 217

Maceio-Al 57050-780 7500 AE Enschede

Brazil The Netherlands

Phone: 0055-82-338-3383 Phone: +31-53-4893537

Fax: 0055-82-338-3383 Fax: +31-53-4893087

EMail: ftv@dialnet.com.br EMail: j.s.clancy@tdg.utwente.nl

Jean-Pierre Charprentier Brad Clark

Int'l Bank for Reconstruction & Devel. Heart Interface Corporation

Washington, DC 1238 Eastern Drive #51

Phone: Port Coquitlam, BC V3C 6C5

Fax: Canada

EMail: Phone: (604) 464-7200

Fax:

EMail: bradceheartioterface.com

Mark Cherniack

DCH Technology, Inc.

3326 NE 64th Avenue Francoise Clottes

Portland, OR 97213-4528 World Bank-IENDR

Phone: (503) 249-8257 2121 Pennsylvania Avenue

Fax: (503) 288-8360 F 5K-174

EMail: markjc@teleport.com Washington, DC

Phone: (202) 686-1507

Fax: (202) 552-3743

Natanael Cintra EMail: fclottes.@worldbank.org

Agrobec Trading, Inc.

1200 Brickell Avenue #680

Miami, FL 33131

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Connie Cole Kevin Comer

Diversity Consulting Antares Group Inc.

1647 Balmoral Drive 4351 Garden City Drive

Detroit, MI 48203 Suite 301

Phone: (313) 891-7133 Landover, MD 20785

Fax: (313) 891-7133 Phone: (301) 731-1900

EMail: Fax: (301) 731-1904

EMail: power2@antares.org

Jeff Cole

UC Berkeley Peter Cook

Energy & Resources Group IFC, Environmental Projects Unit

2429 Sacramento Street 2121 Pennsylvania Ave., NW

Berkeley, CA 94702 Washington, DC 20433

Phone: (510) 548-8044 Phone: (202) 473-2622

Fax: Fax: (202) 974-4349

EMail: jcole@haas.berkeley.edu EMail: pcook@ifc.org

Kelvin Colenbrander David Corbus

Stirling Technology Company National Renewable Energy Lab

4208 W. Clearwater Avenue 1617 Cole Blvd.

Kennewick, WA 99336-2626 Golden, CO 80401

Phone: (509) 735-4700 Phone: (303)-384-6966

Fax: (509) 736-3660 Fax: (303)-384-6901

EMail: lss@stirlingtech.com EMail: dcorbus@nrel.gov

Andrea Collins Oscar Coto

Winrock International Fundacion Solar

1611 N. Kent Street 15 Avenida 18-78, Zona 13

Suite 600 Cindad Guatemala

Arlington, VA 22209 Guatemala

Phone: (703) 525-9430 Phone:

Fax: (703) 243-1175 Fax:

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October 6 -8, 1998

Philip Covell Lawrence Curtin

Enersol Associates, Inc. Photovoltaics Inc.

55 Middlesex Street Box 1

Suite 221 Key Biscayne, FL 33149

Chelmsford, MA 01863 Phone: (305) 365-5825

Phone: (978) 251-8863 Fax: (305) 365-0732

Fax: (978) 251-5291 EMail: contact@photovoltaics.com

EMail: pwcovell@igc.org

Chris Dabi

Steve Cunningham Climate Institute

Soluz, Inc. 120 Maryland Avenue, NE

55 Middlesex Street, Washington, DC 20002

Unit 221 Phone: (202) 547-0104

N. Chelmsford, MA 01863-1561 Fax: (202) 547-0111

Phone: (978) 251-5290 EMail: cdabi@climate.org

Fax: (978) 251-5291

EMail:

Per Danfors

ABB

Luigi Cuozzo 16250 W. Glendale Drive

ENEL New Berlin, WI 53151

Piazza Mazzini 8 Phone: (414) 785-3534

Roma 00195 Fax: (414) 785-9208

Italy EMail:

Phone: 39-06-3207474

Fax:

EMail: L.Cuozzo@flashnet.it Mohan Dangi

National Renewable Energy Lab

1617 Cole Boulevard

Cedric Currin Golden, CO 80401

Currin Corporation Phone: (303) 384-7554

5307 Sturgeon Avenue Fax: (303) 384-7411

Midland, MI 48640-2451 EMail: mohan_dangi@nrel.gov

Phone: (517)-835-7387

Fax: (517)-835-7395

EMail: currcorp@tm.net Eric Daniels

Solarex

630 Solarex Court

Frederick, MD 21703

Phone: (301) 698-4200 x566

Fax: (301) 698-4201

EMail: edaniels@solarex.com
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October 6 -8, 1998

Ghazi Darkazalli Patricia DeLano

GT Solar Technologies, Inc. World Power Technologies

472 Amherst Street 19 N. Lake Avenue

Nashua, NH 03063 Duluth, MN 55802

Phone: (603) 883-5200 x321 Phone: (218) 722-1492

Fax: (603) 595-6993 Fax: (218) 722-0791

EMail: darkazalli@gtsolar.com EMail: patricia@worldpowertech.com

Mark Daugherty Pat DeLaquil

DCH Technology, Inc. BG Technologies

8820 North Greenview Drive 8201 Corporate Drive

Middleton, WI 53562 Suite 1250

Phone: (608) 831-6775 Landover, MD 20785

Fax: (608) 831-6835 Phone: (301) 918-7367

EMail: mddchinc@aol.com Fax: (301)-459-2842

EMail: pdl@energyworks.com

Daniel Davies

Halcrow Gilbert Associates Nikhil Desai

Burderop Park 1818 H Street, NW

Swindon SN4 0QD Washington, DC 20433

United Kingdom Phone: (202) 458-8075

Phone: +44-1793-814765 Fax:

Fax: +44-1793-815020 EMail: panalyticsjuno.com

EMail:

Darian Diachok

Greg Davis Urban Development

Terrasun, LLC 5919 Larpin Lane

4541 S. Butterfield Drive Alexandria, VA

Tucson, AZ 85714 Phone: (703) 971-2115

Phone: 520-512-1995 Fax: (202) 522-3247

Fax: 520-512-1997 EMail: diachokd@erols.com

EMail: gdavis1608@aol.com

Roberta DiPasquale

Michael Davis NASA/AS&M, Inc.

Golden Genesis Company One Enterprise Parkway

4585 McIntyre Street Suite 300

Golden, CO 80403 Hampton, VA 23666-5845

Phone: (303) 271-7161 Phone: (757) 827-4623

Fax: (303) 271-7193 Fax: (757) 825-8659

EMail: mdavis@goldengenesis.com EMail: r.c.dipasquale@larc.nasa.gov
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October 6 -8, 1998

J.D. Doliner Michael Eckhart

Environmental Entp Assistance Fund Solar Bank Project

1901 N. Moore Street 1701 Pennsylvania Ave. NW

Suite 1004 Suite 300

Arlington, VA 22209 Washington, DC 20006

Phone: (703) 522-5928 Phone: (202) 879-2630

Fax: (703) 522-6450 Fax: (202) 879-2637

EMail: jdd@eeaf.org EMail: meckhart@aol.com

Steve Drouilhet Roger Efird

National Renewable Energy Lab Solarex

1617 Cole Boulevard 630 Solarex Court

Golden, CO 80401 Frederick, MD 21703

Phone: (303)-384-6909 Phone: (301) 698-4218

Fax: (303)-384-6901 Fax: (301) 698-4201

EMail: steved@nrel.gov EMail: refird@solarex.com

Joy Dunkerley Pamela Eibeck

3021 Cleveland Ave. NW Northern Arizona University

Washington, DC 20008 McConnell Circle, Bldg. 69

Phone: (202) 232-1118 Flagstaff, AZ 86011-5600

Fax: (202) 234-2610 Phone: (520) 523-8175

EMail: dunkerleyj@aol.com Fax: (520) 523-8951

EMail: pamela.eibeck@nau.edu

Philippe Durand

World Bank Christine Eibs Singer

1818 H Street, NW E&Co

Washinton, DC 20433 Energy House

Phone: (202) 473-3244 383 Franklin Street

Fax: (202) 473-5123 Bloomfield, NJ 07003

EMail: pdurand@worldbank.org Phone: (973) 680-9100

Fax: (973) 680-8066

EMail: chris@energyhouse.com

Steven Durand

Florida Solar Energy Center

1679 Clear Lake Road

Cocoa Beach, FL 32922

Phone: (407) 638-1466

Fax: (407) 638-1010

EMail: sdurand@fsec.ucf.edu
1/18/99 Page 15 of 64

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9LOODJH 3RZHU#*<;

October 6 -8, 1998

Koffi Ekouevi Namjil Enebish

World Bank Post & Telecommunication Authority

1818 H Street, NW P.O. Box 191

Washington, DC 20433 Ulaanbaatar 20 210620

Phone: (202) 473-1391 Mongolia

Fax: (202) 473-5123 Phone: 976-1-361682

EMail: kekouevi@worldbank.org Fax: 976-1-369825

EMail: enebish@magienet.mn

Dennis Elliott

National Renewable Energy Lab Ray Erbeznik

1617 Cole Boulevard Stirling Technology Company

Golden, CO 80401 4208 West Clearwater Avenue

Phone: (303)-384-6935 Kennewick, WA 99336-2626

Fax: (303)-384-6901 Phone: (509) 735-4700

EMail: dennis_elliott@nrel.gov Fax: (509) 736-3660

EMail: rerbeznik@stirlingtech.com

Gerald Elliott

IAE Carl Erickson

2160 Kingston Court, Suite E Energy Concepts Co.

Marietta, GA 30067 627 Ridgely Avenue

Phone: (770) 955-8284 Annapolis, MD 21401

Fax: (770) 955-8194 Phone: (410) 266-6521

EMail: jae@mindspring.com Fax: (410) 266-6539

EMail: enerconcep@aol.com

Richard Emerman

Alaskan State Energy Office Joseph Essandoh-Yeddu

333 W. 4th Avenue Ministry of Mines & Energy

Division of Energy P.M.B., Ministries P.O.

Anchorage, AK 99501-2341 Acera

Phone: (907) 269-4640 Ghana

Fax: (907) 269-4645 Phone: 233-21-667151

EMail: remerman@comregaf.state.ak.us Fax: 233-21-668262

EMail: energy1@ghana.com
1/18/99 Page 16 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Jose Etcheverry Mindi Farber De Anda

University of Toronto Energetics, Inc.

271 Horsham Avenue 501 School Street, SW

Institute of Environmental Studies Suite 500

North York Ontario M2R 1G5 Washington, DC 20024

Canada Phone: (202) 479-2748 x107

Phone: (416) 730-1485 Fax: (202) 479-0229

Fax: (416) 978-6729 EMail: mfarber@energeticsinc.com

EMail: jose.etcheverry@utoronto.ca

Barbara Farhar

Jon Exel National Renewable Energy Lab

World Bank 1617 Cole Blvd, Bldg. 27

1818 H Street, NW Golden, CO 80401

Washington, DC 20433 Phone: (303) 384-7376

Phone: (202) 458-1659 Fax: (303) 384-7540

Fax: (202) 477-2292 EMail: barbara_farhar@nrel.gov

EMail: jexel@worldbank.org

James Farrell

Aldo Fabris Rocky Mtn Alternative Technologies

Ministry of Energy Argentina 18580 West 60th Avenue

Av. Peseo Colon 171 (Ex Aerolineu) Golden, CO 80403-1045

7-Piso-504 Phone: (303) 273-9463

Buenos Aires 1063 Fax: (303) 279-6448

Argentina EMail: rmat@sni.net

Phone: 54 13 498 475

Fax: 54 13 498 045

EMail: afabri@mecon.ar Ernest Fazio

WHPC 90.3FM Radio

One Education Drive

Samuel Fankhauser Garden City, NY 11540

World Bank Phone: (516) 757-1698

1818 H Street, NW Fax: (516) 757-3607

Washington, DC 20433 EMail: emf2000@banet.net

Phone: (202) 458-5422

Fax: (202) 522-3256

EMail: sfankhauser@worldbank.org Tom Ferguson

National Renewable Energy Lab

1617 Cole Boulevard

Golden, CO 80401

Phone: (303) 384-7381

Fax: (303) 384-7411

EMail: tom_ferguson@nrel.gov
1/18/99 Page 17 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Jack Fiddes Patricia Flanagan

Teledyne Brown Engineering USAID

10707 Gilroy Road Renewable Energy Programe

Hunt Valley, MD 21031 1300 Pennsylvania Avenue, NW

Phone: (410) 771-8600 Washington, DC 20523-3800

Fax: (410) 771-8618 Phone: (202) 712-4026

EMail: jackfiddes@hotmail.com Fax: (202) 216-3230

EMail: pflanagan@usaid.gov

John Finger

Sandia National Laboratories William Fleming

P.O. Box 5800 Jacwill Services Inc.

Mail Stop 1033 4571 E. Lake Road

Albuquerque, NM 87185-1033 Cazenouia, NY 13035

Phone: (505)-844-8089 Phone: (315) 655-8745

Fax: (505)-844-3952 Fax: (315) 655-8745

EMail: jtfinge@sandia.gov EMail: flemg@aol.com

Jim Finucane Larry Flowers

SHS Project Support Group National Renewable Energy Lab

Jakarta 1617 Cole Boulevard

Indonesia Golden, CO 80401

Phone: Phone: (303) 384-6910

Fax: 6221-725-3402 Fax: 303-384-7097

EMail: EMail: larry_flowers@nrel.gov

Mark Fitzgerald Michelle Floyd

Institute for Sustainable Power, Inc. Law Environmental Engineers

P.O. Box 260145 112 Town Park Drive

Highlands Ranch, CO 80163 Kennesaw, GA 30144

Phone: (303) 683-4748 Phone: (770) 421-3592

Fax: (303) 470-8239 Fax: (770) 421-3486

EMail: markfitz@pvpower.com EMail: mfloyd@lawco.com

Gerald Foley

Consultant

Phone:

Fax:

EMail:
1/18/99 Page 18 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Thomas Forbes Robert Freling

Soluz, Inc. Solar Electric Light Fund

55 Middlesex St. 1734 20th Street

Unit 221 Washington, DC 20009

N. Chelmsford, MA 01863 Phone: (202) 234-7265

Phone: (978) 825-1529 Fax: (202) 328-9512

Fax: (978) 251-5291 EMail: rfreling@self.org

EMail:

Timothy Frey

Samantha Forusz Harvard University

World Bank 19 Peters Street # 1

1818 H Street Cambridge, MA 02139

Washington, DC 20433 Phone: (617) 864-2811

Phone: (202) 473-3304 Fax: (978) 463-1163

Fax: (202) 522-2427 EMail:

EMail: sforusz@worldbank.org

Robert K. Fullagar

John Foster GPU International

USEPA One Upper Pond Road

401 N Street SW (2171) Parsippany, NJ 07054-1050

Washington, DC 20460 Phone: (973) 263-6761

Phone: (202) 260-8496 Fax: (973) 263-6868

Fax: (202) 260-0289 EMail: rfullagar@gpui.com

EMail: foster.john@epamai.epa.gov

Kwawu Gaba

Robert Foster World Bank

New Mexico State University 1818 H Street, NW

Southwest Technology Dev. Inst. Washington, DC 20024

P.O. Box 30001, MSC 3 SOL Phone: (202) 473-3356

Las Cruces, NM 88003-3941 Fax: (202) 473-5123

Phone: (505) 646-1049 EMail: kgaba@worldbank.org

Fax: (505) 646-3841

EMail: rfoster@nmsu.edu

Les Garden

U.S. Department of Commerce

ITA/Energy Division

Room 4054

Washington, DC 20230

Phone: (202) 482-0556

Fax: (202) 482-5361

EMail: les_garden@ita.doc.gov
1/18/99 Page 19 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Karl Gawell Alia Ghandour

Geothermal Energy Association Consultant

122 C Street, NW 1750 North Troy, # 691

Suite 400 Arlington, VA 22201

Washington, DC 20001 Phone: (703) 524-6348

Phone: (202) 383-2676 Fax: (703) 524-6348

Fax: (202) 383-2678 EMail:

EMail: kgawell@geotherm.org

Anders Glader

Charles Gay Genesis Power, LLC

ASE Americas, Inc. 114 Morning Sun Avenue

4 Suburban Park Drive Mill Valley, CA 94941

Billerica, MA 01821 Phone: (415) 388-2767

Phone: (978) 667-5900 Fax: (415) 388-2758

Fax: (978) 670-2791 EMail: aglader@earthlink.net

EMail: cgay123@ibm.net

Peter Goldman

Thulani Gcabashe U.S. Department of Energy

ESKOM 1000 Independence Avenue, S.W.

A3 Exec. Magawatt Park PV Wind Division, MS EE-11, Rm#5H047

Maxwell Drive, Sunninghill Washington, DC 20585

Sandton 2161 Phone: (202) 586-1995

South Africa Fax: (202) 586-5124

Phone: EMail: peter.goldman@hq.doe.gov

Fax:

EMail:

Ibrahima Goodwin

U.S. EPA

Andrew Getraer 401 M Street,SW

Geothermal Power Company MC 1601-F

24 Colby Road Washington, DC 20460

Wellesley, MA 02181 Phone: (202) 260-1947

Phone: (617) 235-1865 Fax: (202) 260-9571

Fax: (617) 235-1947 EMail: goodwin.bryan@epa.gov

EMail:
1/18/99 Page 20 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Jamal Gore Stephen Graham

Winrock International SGA Consulting

1611 N. Kent Street 1355 Bank Street, Suite 500

Suite 600 Ottawa K1H 8K7

Arlington, VA 22209 Canada

Phone: (703) 525-9430 Phone: (613) 730-7421

Fax: (703) 243-1175 Fax: (613) 523-0717

EMail: jgore@winrock.org EMail: ssgraham@ibm.net

Chandrasekar Govindarajalu Jim Green

World Bank National Renewable Energy Lab

1818 H Street, NW 1617 Cole Boulevard

Washington, DC 20008 Golden, CO 80401

Phone: (202) 458-1211 Phone: (303)-384-6913

Fax: (202) 477-2743 Fax: (303)-384-6901

EMail: cgovindarajalu@worldbank.org EMail: jim_green@nrel.gov

Marcia Gowen Cathy Gregoire Padro

ICF Consulting Group National Renewable Energy Lab

1850 K Street, Suite 1000 1617 Cole Boulevard

Washington, DC 20006 Golden, CO 80401

Phone: (202) 862-2967 Phone: (303) 275-2919

Fax: (202) 862-1144 Fax: (303) 275-2905

EMail: mgowen@icfkaiser.com EMail: cathy_padro@nrel.gov

Shannon Graham Dayton Griffin

Enersol Associates, Inc. Kamzin Technology, Inc.

55 Middlesex St. 425 Pontius Avenue, N.

Suite 221 Suite 150

N. Chelmsford, MA 01863 Seattle, WA 98109

Phone: (978) 251-1828 x9 Phone: (206) 292-0070 x122

Fax: (978) 251-5291 Fax: (206) 292-0075

EMail: sgraham@igc.org EMail: kamzin@compuserve.com
1/18/99 Page 21 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Magdala Gronau Kedar Gupta

Emerging Topics GT Solar Technologies, Inc.

Eststr. 56 472 Amherst Street

Essen D-45149 Nashua, NH 03063

Germany Phone: (603) 883-5200 x301

Phone: 49-201-718393 Fax: (603) 595-6993

Fax: 49-201-7109871 EMail: gupta@gtequipment.com

EMail: dr.m.gronau@t-online.de

Luiz Gutierrez-Santos

Jeff Grossberg World Bank

The Focus Group Insurgentes Sur 890

72 Baker Road Col. del Valle

Shutesbury, MA 01072 D.F. 03100

Phone: (413) 259-9100 Mexico

Fax: (413) 259-1255 Phone: 525 448 6087

EMail: eastways@aol.com Fax:

EMail: lgutierrez@worldbank.org

Louise Guey-Lee

U.S. Department of Energy Les Hamasaki

Energy Information Administration SUN Utility Network, Inc.

E1-52, Comstat Building 6019 626 Wilshire Blvd.

Washington, DC 20585-0650 Suite 711

Phone: (202) 426-1143 Los Angeles, CA 90017

Fax: (202) 426-1280 Phone: (213) 623-9797

EMail: louise.guey-lee@eia.doe.gov Fax: (213) 623-2041

EMail: info@sunutiltiy.com

Daniele Guidi

Ministry of Foreign Affairs Katherine Hamilton

11 Colombaio National Renewable Energy Lab

Montebenichi AR 52020 409 12th Street, SW

Italy Suite 710

Phone: 39-55-991-0092 Washington, DC 20024

Fax: 39-55-991-0092 Phone: (202) 652-7521

EMail: dguidi@val.it Fax: (202) 651-7501

EMail: katherine_hamilton@nrel.gov
1/18/99 Page 22 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Mark Hammonds Zia Haq

BP Solar, Inc. PERI

2300 N. Watney Way 1700 Rockville Pike

Fairfield, CA 94533 Suite 550

Phone: (707) 428-7800 Rockville, MD 20852

Fax: (707) 428-7878 Phone: (301) 468-8423

EMail: hammonm@bp.com Fax: (301) 230-1232

EMail: zhaq@perihq.com

Mohamoud Abdi Hamud

Horn of Africa-Support Program Lindsay Hardie

5539 Columbia Pike, #804 Statpower Technologies Corp.

Arlington, VA 22204 7725 Lougheed Highway

Phone: (703) 578-4913 Burnaby V5A 4V8

Fax: (703) 578-4956 Canada

EMail: Phone: (604) 420-1585

Fax: (604) 420-1591

EMail: lhardie@statpower.com

Charles Hanley

Sandia National Laboratories

P.O. Box 5800 Robert Hassett

Albuquerque, NM 87185-0704 U.S. Department of Energy

Phone: (505)-844-4435 1000 Independence Avenue, S.W.

Fax: (505)-844-7786 Washington, DC 20585-0002

EMail: cjhanle@sandia.gov Phone: (202) 586-8163

Fax: (202) 586-8148

EMail: robert.hassett@hq.doe.gov

Richard Hansen

Solux, Inc.

55 Middlesex Street Paul Hassing

Unit 22 DGIS

N. Chelmsford, MA 01863 P.O. Box 20061

Phone: 508-251-5290 The Hague

Fax: 508-251-5291 2500 EB

EMail: Netherlands

Phone:

Fax:

EMail:
1/18/99 Page 23 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Alden Hathaway William Hinds

ICF Kaiser/United Solar Systems, Corp. University of West Indies

9300 Lee Highway Cave Hill Campus

Fairfax, VA 22031 Cermes

Phone: (703) 934-3144 Barbados

Fax: (703) 934-3530 Phone: 246-417-4570

EMail: ahathaway@icfkaiser.com Fax:

EMail: caribbeanret@sunbeach.net

Bill Haveland

Sistemas de Energia Eficientes Steve Hirsch

3054 C. rd #7 Ministry of Energy and Mineral Dev.

Grand Marais, MN 55604 P.O. Box 7270

Phone: (218) 387-2326 Amber House

Fax: (506) 228-2295 Kampala

EMail: bhaveland@boreal.org Uganda

Phone: 256-41-349277

Fax: 256-41-230-220

Campbell Hawkins EMail: upppre@infocom.co.ug

Global Solar Energy, LLC

12401 W. 49th Avenue

WheatRidge, CO 80033 Johanna Hjerthen

Phone: (303) 420-1141 E & CO

Fax: (303) 420-1551 383 Franklin St.

EMail: chawkins@itnes.com Broomfield, NJ 07003

Phone: (973) 681-9100

Fax: (973) 680-8066

Enno Heijndermans EMail: eco@energyhouse.com

World Bank

1818 H Street, NW

Washington, DC 20433 Sue Hock

Phone: (202) 450-8205 National Renewable Energy Lab

Fax: (202) 477-2743 1617 Cole Blvd.

EMail: eheijndermans@worlbank.org Golden, CO 80401

Phone: (303)-384-6950

Fax: (303)-384-6999

Juan Hernandez EMail: susan_hock@nrel.gov

Fundacion Mexicana para del Desarrollo

La Quemada # 40

Col. Narvark CP 03020

Mexico

Phone:

Fax: 011-525-519-2054

EMail:
1/18/99 Page 24 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Herre Hoekstra Bryan Houghton

Shell International Renewables Ltd. Philippine Regional Dev. Foundation

RNS Shell Centre 158 Pili Drive

London SE1 7NA Ayala Alabang

United Kingdom Muntinlupa

Phone: Philippines

Fax: Phone: 8503285

EMail: Fax: 8022840

EMail:

Allan Hoffman

U.S. Department of Energy Sarah Howell

1000 Independence Ave, SW Solarex

Washington, DC 20585 630 Solarex Court

Phone: (202) 586-1786 Frederick, MD 21703

Fax: (202)-586-1640 Phone: (301) 698-4272

EMail: allan.hoffman@hg.doe.gov Fax: (301) 698-4201

EMail: showell@solarex.com

Paul Hoffmann

WHPC 90.3FM Leslie Anne Hummel

15 Allyson Placae Stanford University

E. Setauket, NJ 07133 P.O. Box 3363

Phone: (516) 689-3413 Stanford, CA 94309

Fax: (506) 757-3607 Phone:

EMail: face924@aol.com Fax:

EMail: hummel@leland.stanford.edu

Burkhard Holder

Fraunhofer ISE Suresh Hurry

Oltmannsstrasse 5 UNDP

Freiburg 79100 304 E. 45th Street

Germany RM-FF-9108

Phone: ++49 761-4588-103 New York, NY 10017

Fax: ++49 761-4588-349 Phone: (212) 906-6306

EMail: holder@ise.fhg.de Fax: (212) 906-5148

EMail: shurry@seed.undp.org
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9LOODJH 3RZHU#*<;

October 6 -8, 1998

Mahmoud Ibrihim Gilbert Jackson

Palestinian Water Authority USAID

P.O. Box 660 RRB 1300 PA Avenue

Ramallah LAC/RSD Rm 509

Israel Washington, DC 20004

Phone: 972-2544-9022 Phone: (202) 712-1219

Fax: 972-2544-7148 Fax: (202) 216-3262

EMail: kassaf@planet.edu EMail: gijackson@usaid.gov

Ache Idachaba Monvois Jacques

Mobil Oil Corp. Espace Eolien Development

3225 Gallows Road, 5W722 16 Rue Faidherbe

Fairfax, VA 22037 Lille 59000

Phone: (703) 849-5856 France

Fax: (703) 849-5206 Phone: +33320740400

EMail: achenyo_idachaba@email.mobil.com Fax: +33320740407

EMail: eed@espace-eolien.fr

Katrina Ignacio

BP South East Asia Ltd. Vladimir Jadrijevic

191 Salcedo Street World Bank

Legaspi Village 1818 H Street, NW

Metro Manita, Makati Washington, DC 20433

Philippines Phone: (202) 473-8703

Phone: 63-2-892-9714 Fax:

Fax: 63-2-8171523 EMail: vjadrijevic@worldbank.org

EMail: ignacik@bp.co

Jeffrey James

Nae Ismail PERI

Solar Street Lights 1700 Rockville Pike

1485 Triole Street Suite 550

Ottawa Rockville, MD 20852

Ontario K1B-3S4 Phone: (301) 468-8424

Canada Fax: (301) 230-1232

Phone: (613) 748-1809 EMail: jjames@perihq.com

Fax: (613) 748-3789

EMail: ism3@easyinternet.net
1/18/99 Page 26 of 64

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October 6 -8, 1998

Willem Jan Van Wijek Kurt Johnson

Shell Renewables USEPA

London 401 M Street, SW

England MC 2175

Phone: Washington, DC 20460

Fax: Phone: (202) 260-7026

EMail: Fax: (202) 260-6405

EMail: johnson.kurt@epamail.epa.gov

Pradip Jayewardene

Solar Power & Light Co., Ltd. Peter Johnston

10, Havelock Place Arizona Public Service

Colombo 05 400 N. 5th Street

Sri Lanka MS 8931

Phone: 598681,074-514150 Phoenix, AZ 85004

Fax: Phone: (602) 250-3020

EMail: suntec@slt.lk Fax: (602) 250-3872

EMail: pjohnsdg@apsc.com

Karl Jechoutek

The World Bank Augusto Juca

1818 H Street, N.W. USAID/Energy

Washington, DC 20433 SES Quadra 80J Av. Das Nagoes

Phone: (202) 458-2872 American Embassy

Fax: (202) 522-3483 Brasilia 70403-900

EMail: kjechoutek@worldbank.org Brazil

Phone: +55-613217272

Fax: +55-613236875

Antonio C. Jimenez EMail: ajuca@usaid.gov

National Renewable Energy Lab

1617 Cole Blvd

Golden, CO 80401 Bobby Julian

Phone: (303) 384-7027 Preferred Energy, Inc.

Fax: (303) 384-7097 10/F, Strata 100 Building

EMail: tony_jimenez@nrel.gov Emeral Avenue, Ortigas Center

Metro Manila 1600 Pasig

Philippines

Phone: 63-2-631-2826

Fax: 63-2-632-5578

EMail: pei@info.com.ph
1/18/99 Page 27 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Fred Kabagambe Kaliisa Kerry Kalarney

UNDP/GEF Power Pod. Corp.

P.O. Box 7270 P.O. Box 321

Amber House, Kampala Placerville, CO 81430

Uganda Phone: (970) 252-1978

Phone: 256-41-257-864 Fax: (970) 252-1978

Fax: 256-41-230220 EMail: solar@rmi.net

EMail: upppre@infocom.co.ug

Eric Kalkhurst

Melek Kabariti Synergy Power Corporation

Royal Scientific Society 20/F Wilson Housse

P.O. Box 1945 19-27 Wyndham Street

Al-Jubeaiha Central

Amnan 11941 Hong Kong

Jordan Phone: 852-2846-3168

Phone: 962-6534-4701 Fax: 852-2810-0478

Fax: 962-5434-4806 EMail: synergypowercorp@compuserve.com

EMail: kabariti@rss.gov.jo

Alex Kalu

David Kaczynski Savannah State University

Global Energy Enterpr. India Pvt. Ltd. 3219 College Street

507 Plum Street Savannah, GA 31404

Syracuse, NY 13204 Phone: (912) 356-2218

Phone: (315) 460-3396 Fax: (912) 356-2432

Fax: (315) 460-3325 EMail: kalueze@aol.com

EMail: kaczynskida@nmenergy.com

Daniel Kammen

John Kadyszewski Princeton University

Winrock International Science, Technology Environment

1611 N. Kent Street Policy Program

Suite 600 Princeton, NJ 08544

Arlington, VA 22209 Phone: (609) 258-4821

Phone: (703) 525-9430 x618 Fax: (609) 258-6082

Fax: (703) 243-1175 EMail: kammen@princeton.edu

EMail: jpk@winrock.org
1/18/99 Page 28 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

William Kanzer Mohammed Abul Kashem

Evergreen Solar Nature Conservation Management

211 Second Avenue Section 12, Block D

Waltham, MA 02451 House 19/25-Mirpur

Phone: (781) 890-7117 Dhaka 4203

Fax: (781) 890-7141 Bangladesh

EMail: egsolar@aol.com Phone:

Fax:

EMail:

Mark Kapner

Terra Solar, Inc.

P.O. Box 194 Pat Keegan

Metuchen, NJ 08840 National Renewable Energy Lab

Phone: (732) 906-6408 1617 Cole Boulevard

Fax: (732) 906-9502 Golden, CO 80401

EMail: info@ferrasolar.com Phone: (303) 384-7472

Fax: (303) 384-7419

EMail: pat_keegan@nrel.gov

Mohammed Karim

Green Living Industrial Association

1 Ayasha Khatun Lane Ellen Kennedy

Chandanpura Winrock International

Chittagong 4203 1611 N. Kent Street

Bangladesh Suite 600

Phone: 880-31-615603 Arlington, VA 22209

Fax: Phone: (703) 525-9430

EMail: chitra@spnetefg.com Fax: (703) 243-1175

EMail: ekennedy@winrock.org

Rezwanul Karim

Jackson State University Ted Kennedy

1440 JR Lynch Street IFC

Jackson, MS 39217 2121 Pennsylvania Ave., NW

Phone: (601) 968-7012 Washington, DC 20433

Fax: (601) 968-8623 Phone:

EMail: rkarim@ecaix-jsums.edu Fax:

EMail: tkennedy@ifc.org
1/18/99 Page 29 of 64

Attendee List

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October 6 -8, 1998

Edward Kern Hasna Khan

Ascension Technology Energy Systems

P.O. Box 6314 338 Ronald Drive

Waltham, MA Newport News, VA 23602

Phone: (781) 684-6101 Phone: (757) 872-9921

Fax: (781) 890-2050 Fax: (757) 872-9921

EMail: ekern@ascensiontech.com EMail: hkhan@bd.drlk.net

Tom Kerr Omar Kittani

Sentech, Inc. Palestinian Energy Authority

4733 Bethesda Avenue P.O. Box 3591

Suite 608 Alersal Street, Alersal Bldg.

Bethesda, MD 20814 Ramallah

Phone: (301) 654-7224 Palestine

Fax: (301) 654-7832 Phone: 972-2298-6190

EMail: tkerr@sentech.org Fax: 972-2298-6191

EMail: pierro@planet.edu

Chuck Kezar

Technical Consultant David Kittelson

P.O. Box 129 NRECA/Bolivia

Morgan, VT 05853 431 Wilson Blvd.

Phone: (802) 895-9917 Arlington, VA 22203-1860

Fax: Bolivia

EMail: ckezar34@aol.com Phone: 591-2-787895

Fax: 591-2-786931

EMail: 75142.2617@compuserve.com

Ali Khan

Clean Energy Development, Inc.

1227 Blackburn Drive Paul Klimas

Oakville, Ontario L6M 2W5 USAID

Canada Center for Environment

Phone: (905) 825-9793 Washington, DC 20523-3800

Fax: (905) 825-9793 Phone: (202) 712-1685

EMail: khan@echo-on.net Fax: (202) 216-3230

EMail: pklimas@usaid.gov
1/18/99 Page 30 of 64

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9LOODJH 3RZHU#*<;

October 6 -8, 1998

Richard Klockner Andrew Kruse

World Bank Southwest Windpower

1818 H Street, NW 2131 N. First Street

Room I5177 Flagstaff, AZ 86004

Washington, DC 20433 Phone: (520)-779-9463

Phone: (202) 473-8760 Fax: (520)-779-1485

Fax: (202) 676-1821 EMail: andy@windenergy.com

EMail: rklockner@worldbank.org

John Kuhns

John Knight Solar Electric Light Company

Growth Capital Holdings 558 Lime Rock Road

3100 Arapahoe Avenue Lime Rock, CT 06039

Suite 503 Phone: (806) 435-7000

Boulder, CO 80303 Fax: (301) 657-1165

Phone: (303) 449-4711 EMail: kuhnsbro@compsol.net

Fax: (303) 449-4787

EMail: jckloogch@aol.com

Dinesh Kumar

PERI

Caio Koch-Weser 1700 Rockville Pike, Suite 550

World Bank Rockville, MD 20852

1818 H Street, NW Phone: (301) 881-0650

Washington, DC 20433 Fax: (301) 230-1232

Phone: EMail: dkumar@perihq.com

Fax:

EMail:

Michael Kustudia

National Center for Appropriate Tech.

Richard Krasnow 1324 Murray Street

Institute Int'l Education Energy Group Missoula, MT 59802

1400 K Street, NW Phone: (406) 327-0705

Washington, DC 20005 Fax: (406) 494-2905

Phone: (202) 326-7808 EMail: michaelk@ncat.org

Fax: (202) 326-7694

EMail: rkrasnow@iie.org

Brian Kybett

University of Regina

3737 Wascana Parkway

Regina SK S4S 0A2

Canada

Phone: (306) 585-4261

Fax: (306) 585-5205

EMail: kybettbd@cas.uregina.ca
1/18/99 Page 31 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Tom Lambert Jay Laskin

Consultant Teledyne Brown Engineering

305 Arbor Wood Close, NW 10707 Gilroy Road

Calgary T3G 4B4 Hunt Valley, MD 21031

Canada Phone: (410) 771-8600

Phone: (403) 241-3891 Fax: (410) 771-8618

Fax: (403) 241-6251 EMail: jay.laskin@pobox.tbe.com

EMail: lambert@nucleus.com

Jean Paul Laude

Mark Lambrides Ministere Royal Des Affairs Etrangeres

Winrock International Asiatrisk Plads 2

1611 N. Kent St. Copenhague K DK-1448

Suite 600 Denmark

Arlington, VA 22209 Phone: 45-33-92-0260

Phone: (703) 525-9430 Fax: 45-31-54-05-33

Fax: (703) 243-1175 EMail:

EMail: mlambrides@winrock.org

Peter Law

Karen Lane World Bank

Electrotek Concepts, Inc. 1818 H Street, NW

2111 Wilson Blvd., Suite 323 Washington, DC 20433

Arlington, VA 22201 Phone: (202) 473-6977

Phone: (703) 351-4492 x121 Fax: (202) 522-0395

Fax: (703) 351-4495 EMail: plaw@worldbank.org

EMail: karenl@electrotek.com

Michel Layec

Laurent Langevine World Bank

University of Guyana 1818 H Street, NW

Department of Physics Washington, DC 20433

P.O. Box 10-1110, Demerara Phone: (202) 473-3231

Georgetown Fax: (202) 473-5123

Guyana EMail: mlayec@worldbank.org

Phone: 592-2-71423

Fax: 592-22-3596

EMail: laurent.langevine@physics.org Robert Lee

Alternative Energy Development, Inc.

8455 Colesville Road, Suite 1225

Silver Spring, MD 20910

Phone: (301) 608-3666

Fax: (301) 608-3667

EMail: rflee@compuserve.com
1/18/99 Page 32 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Todd Leeuwenburgh Dana Levy

Solar & Renewable Energy Outlook IFREE

951 Pershing Drive 727 15th Street, NW

Silver Spring, MD 20910 11th Floor

Phone: (301) 587-6300 Washington, DC 20005

Fax: (301) 587-1081 Phone: (202) 408-7916

EMail: bpihuman@bpinews.com Fax: (202) 371-5116

EMail: dana@ifree.org

Gregory Leng

CEDRL/NRCan Debra Lew

1615 Lionel-Boulet Blvd. Consultant

P.O. Box 4800 4209 Randy Court

Varennes, Quebec J3X 1S6 Mays Landing, NJ 08330

Canada Phone: (609) 383-9603

Phone: (450) 652-5154 Fax:

Fax: (450) 652-5177 EMail: bonzai@alum.mit.edu

EMail: gregory.leng@nrcan.gc.ca

Thomas Leyden

Jeff Lernould WorldWater Corp.

The Focus Group 55 Route 31 South

72 Baker Road Pennington, NJ 08534

Shutesbury, MA 01072 Phone: (609) 818-0700

Phone: (413) 259-1254 Fax: (609) 818-0720

Fax: (413) 259-1255 EMail: pvtl2@aol.com

EMail: clrwater@valinet.com

Janine Reine Leygonie

Michael Lesser World Bank

deLucia and Associates, Inc. 1818 H Street, NW

5 Hastings Square Washington, DC 20433

Cambridge, MA 02139-4724 Phone: (202) 473-5023

Phone: (617) 576-0646 Fax: (202) 473-5123

Fax: (617) 547-4286 EMail: jleygonie@worldbank.org

EMail: dla@world.std.com
1/18/99 Page 33 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Evelyn Lieberman Jorge Lima

Voice of America CEPEL

330 Indendence Ave., SW Av. Hum. S/N

Suite 3300 Cidade Universitaria

Washington, DC Rio de Janeiro 21941-590

Phone: (202) 619-6675 Brazil

Fax: (202) 260-2228 Phone: 55-21-598-2133

EMail: Fax: 55-21-260-6211

EMail: jlima@fund.cepel.br

Peter Lilienthal

National Renewable Energy Lab Charles Llenza

1617 Cole Boulevard U.S. Department of Energy

Golden, CO 80401 1000 Independence Ave, SW

Phone: (303) 384-7444 Rm#64-024

Fax: (303) 384-7411 Washington, DC 20585

EMail: lilientp@tcplink.nrel.gov Phone: (202) 586-2192

Fax: (202) 586-1605

EMail: charles.llenza@hq.doe.gov

Art Lilley

Community Power Corp.

306 McChain Road Malcolm Lodge

Finleyville, PA 15332 Island Technologies, Inc.

Phone: (724) 348-6386 P.O. Box 26, REI

Fax: (724) 348-8923 Charlottetown C1A7L9

EMail: artsolar@aol.com Canada

Phone: (902) 368-7171

Fax: (902) 368-7139

Malcolm Lillywhite EMail: iti@isn.ca

Domestic Technology

P.O. Box 44

Evergreen, CO 80439 Eduardo Lorenzo

Phone: (303)-674-7700 Instituto de Energia Solar

Fax: (303)-674-7772 Ciudad Universitaria

EMail: dti@domtech.com Madrid 28040

Spain

Phone: 3491-544-1060

Fax: 3491-544-6341

EMail: lorenzo@ies-def.upm.es
1/18/99 Page 34 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Peter Lowenthal Dan Mackeesy

SEIA ESB International, Ltd.

122 C Street, NW Stephen Court

4th Floor 18/21 St. Stephen's Green

Washington, DC 20001-2109 Dublin 2

Phone: (202) 383-2604 Ireland

Fax: (202) 383-2670 Phone: 353-1-7038340

EMail: plowenth@seia.org Fax: 353-1-6764400

EMail:

Cynthia Lowry

Global Climate Change Consultant Tristan Mackie

2227 Carmichael Drive TM Environmental Power

Vienna, VA 22181 17 Hazel End

Phone: (703) 938-6938 Wooton Bassett

Fax: (703) 938-5172 Wiltshire SN4 7ET

EMail: 105050.3672@compuserve.com United Kingdom

Phone: 44-17938-4008

Fax:

Per Lundsager EMail:

Darup Associates Ltd.

Dalkildevej 11, Raabylille

Stege DK4780 Callisto Madavo

Denmark World Bank

Phone: 45-5581-3118 1818 H Street, NW

Fax: 45-5581-3128 Washington, DC 20433

EMail: per.lundsager.@catscience.dk Phone:

Fax:

EMail:

Kevin Lynn

Florida Solar Energy Center

1679 Clearlake Road Suzanne Maia

Cocoa, FL 32922 IADB

Phone: (407) 638-1440 1300 New York Avenue, NW

Fax: (407) 638-1010 MS-W500

EMail: klynn@fsec.ucf.edu Washington, DC 20577

Phone: (202) 623-3635

Fax: (202) 623-1786

EMail: mmedina@iadb.org
1/18/99 Page 35 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Alex Makomva Fernando Manibog

ZESA World Bank

25 Samora Machel Avenue 1818 H Street, NW

P.O. Box 377 Washington, DC 20433

Harace Phone: (202) 458-0402

Zimbabwe Fax: (202) 522-3132

Phone: EMail: fmanibog@worlbank.org

Fax:

EMail:

Janette Manke

Consultant

Deepak Malghan 1143 Ponderosa Drive

Princeton University Evergreen, CO 80439

STEP Program Phone: (303) 679-9284

Woodrow Wilson School, Robertson Hall Fax:

Princeton, NJ 08544 EMail: jmanke@hotmail.com

Phone: (609) 688-1827

Fax:

EMail: dmalghan@princeton.edu Myk Manon

NRECA

4301 Wilson Blvd.

Euginio Mancini Arlington, VA 22203

DNDE Phone: (503) 289-0222

Ministerio de Minas e Energia Fax: (503) 278-6377

Esplanada dosMinisterios,Bloco U-5 Andar EMail:

Brasilia-DF 70065-900

Brazil Brenda Manuel

Phone: World Bank

Fax: 1818 H Street, NW

EMail: Washington, DC 20433

Phone: (202) 473-7915

Fax: (202) 522-3018

Richard Mangrich EMail: bmanuel@worldbank.org

USAID Dominican Republic

PVO Co-Financing Project Mgr.

Santo Domingo James Manwell

Dominican Republic University of Massachusetts

Phone: (809)-221-1100 219 Engineering Laboratory Bldg.

Fax: (809)-221-6565 Mechanical Engineering Department

EMail: rmangrich@usaid.gov Amherst, MA 01003

Phone: (413)-545-4359

Fax: (413) 545-1025

EMail: manwell@ecs.umass.edu
1/18/99 Page 36 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Hermenegildo Manzano Felix Martin

National Electrification Administration World Bank

1050 CDFC Building 1818 H Street, NW

Quezon Avenue Washington, DC 20433

Quezon City Phone: (202) 458-4488

Philippines Fax: (202) 522-3004

Phone: 632-372-4949 EMail: fmartin@worldbank.org

Fax: 632-372-4959

EMail:

Eric Martinot

World Bank

Magdalena Manzo Environmental Dept./Global Climate

World Bank 1818 H Street, NW S-2108

1818 H Street, NW Washington, DC 20433

Washington, DC 20433 Phone: (202) 473-0169

Phone: (202) 458-1466 Fax: (202) 522-3256

Fax: EMail: martinot@seib.org

EMail:

Thomas Mason

J.F. Robert Marcello Swed Power AB

Ministere Des Travaux Publics Vasagatan 15, PO Box 34

Palais Des Ministeres Stockholm SE10120

Port-Au-Prince Sweden

Haiti Phone: 46-8-6776529

Phone: 509-23-5195 Fax: 46-8-213306

Fax: 509-23-4798 EMail: tom.mason@swedpower.se

EMail:

Rene Masse

Robert Markee World Bank

Energy Unlimited, Inc. 1818 H Street, NW

100 Four Falls Corporate Center Washington, DC 20433

Suite 215 Phone: (202) 473-8682

W. Conshohocken, PA 19428 Fax: (202) 522-3483

Phone: (610) 940-1994 EMail: rmasse@worldbank.org

Fax: (610) 940-4422

EMail: cwhitearg@aol.com
1/18/99 Page 37 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

John Mather Andrew McAllister

Shell International Renewables Energy & Resources Group

Shell Centre 310 Barrows Hall, #3050

London SE1 7NA University of California

United Kingdom Berkeley, CA 94720-3050

Phone: 44-171-934-2386 Phone: (510) 665-4210

Fax: 44-171-934-7144 Fax: (510) 665-4210

EMail: john.j.mather@si.shell.com EMail: amcallister@compuserv.com

Pierre Mathieu Steve McCarney

World Business, Inc. Golden Genesis Company

1819 H Street, NW 4331 Pine Island Road

Suite 600 P.O. Box 457

Washington, DC 20006 Matlacha, FL 33993

Phone: (202) 293-0612 Phone: (941) 283-0060

Fax: (202) 223-8437 Fax: (941) 283-4788

EMail: wbi@mnsinr.com EMail: smccarney@goldengenesis.com

Subodh Mathur Eugene McCarthy

Consultant World Bank

6417 Dahlonega Road 1818 H Street, NW

Bethesda, MD 20816 Washington, DC 20433

Phone: (301) 320-0070 Phone: (202) 458-5190

Fax: (301) 320-0650 Fax:

EMail: mathurs@cais.com EMail:

Paul Maycock J. Murray McCombs

PV Energy Systems, Inc. JMCA, Inc.

4539 Old Auburn Road 8813 Woodland Drive

Warrenton, VA Silver Spring, MD 20910

Phone: (540) 349-4497 Phone: (301) 585-9234

Fax: (540) 349-4497 Fax: (301) 585-9113

EMail: pvenergy@crosslink.net EMail: jmcainc@mcimail.com
1/18/99 Page 38 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Susan McDade Alastair McKechnie

UNPD World Bank

304 East 45th Street 1818 H Street, NW

Room 999 Washington, DC 20433

New York, NY 10017 Phone: (202) 473-3047

Phone: (212) 906-6085 Fax: (202) 522-2427

Fax: (212) 906-5148 EMail: amckechnie@worldbank.org

EMail: susan.mcdade@unpd.org

Peter McKenzie

John McDermott ASE Americas, Inc.

The Jamison Institute 4 Suburban Park Drive

209 Steele Hall Billerica, MA 01821

Dartmouth College Phone: (978) 667-5900 x219

Hanover, NH 03755 Fax: (978) 670-2971

Phone: (603) 646-1282 EMail: pjmckst@aol.com

Fax: (603) 646-1682

EMail: john.mcdermott@dartmouth.edu

Ann McKinney

Geothermal Energy Association

Deborah McGlauflin 122 C Street, NW

Insights in Action, Inc. Suite 400

2682 Claibourne Road Washington, DC 20001

Annapolis, MD 21403 Phone: (202) 383-2676

Phone: (410) 216-9451 Fax: (202) 383-2678

Fax: (410) 216-9471 EMail: annmck@geotherm.org

EMail: debbimc@tonn.com

Bernard McNelis

Rick McGowan IT Power Ltd.

ARD The Warren Bramshill road

110 Main Street, 4th Floor Eversley

Burlington, VT 05401 Hampshire RG27 OPR

Phone: (802) 658-3890 United Kingdom

Fax: (802) 658-4247 Phone: 44-118-9730073

EMail: rmcgowan@ardinc.com Fax: 44-118-9730820

EMail: bmcn@itpower.co.uk
1/18/99 Page 39 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Stephen McNulty Rene Mendonca

US Export Council Renewable Energy World Bank

122 C Street, NW 1818 H Street, NW

4th Floor Room H-10097

Washington, DC 20001 Washington, DC 20433

Phone: (202) 383-2550 Phone: (202) 473-2989

Fax: (202) 383-2555 Fax: (202) 477-1998

EMail: mcnulty@usecre.org EMail: rmendonca@worldbank.org

Raymond Meiner Robert Meredith

Niagara Mohawk Energy Stanley Consultants, Inc.

507 Plum Street 225 Iowa Avenue

Syracuse, NY 13204 Stantley Building

Phone: (315) 460-3397 Muscatine, IA 52761-3764

Fax: (315) 460-3325 Phone: (319) 264-6416

EMail: meinerrw@nmenergy.com Fax: (319) 264-6658

EMail: meredithrobert@stanleygroup.com

Dennis Meiners

Alaskan State Energy Office Anke Meyer

P.O. Box 190869 World Bank

Anchorage, AK 99519-0869 1818 H Street, NW

Phone: (907)-561-7877 Room F2K-174

Fax: (907)-561-8584 Washington, DC 20043

EMail: Phone: (202) 473-9962

Fax: (202) 522-3483

EMail: ameyer@worldbank.org

Dana Mellecker

Spire Corporation

One Patroits Park Dean Middleton

Bedford, MA 01730-2396 Applied Power Corporation

Phone: (781) 275-6000 1210 Homann Drive SE

Fax: (781) 275-7470 Lacey, WA 98503

EMail: dmellecker@spirecorp.com Phone: (360) 438-2110

Fax: (360) 438-2115

EMail: apcdean@aol.com

Matthew Mendis

Alternative Energy Development

P.O. Box 7698

Silver Springs, MD 20907

Phone: (301) 608-3666

Fax: (301) 608-3667

EMail: mendis@compuserve.com
1/18/99 Page 40 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Said Mikhail Greg Milsom

World Bank Solar Energy-Live the Good Life

1818 H Street, NW P.O. Box 1200

Washington, DC 20433 Bowie, MD 20718

Phone: (202) 473-4283 Phone: (301) 210-7669

Fax: (202) 473-5123 Fax:

EMail: smikhail@worldbank.org EMail:

Jaime Millan Jacques Monvois

Inter-American Development Bank GRET

1300 New York Avenue, NW 211-213 rue La Fayette

MS W500 Paris 75010

Washington, DC 20577 France

Phone: (202) 623-1949 Phone: 33-0-1400561 61

Fax: (202) 623-1786 Fax: 33-0-14005611 10

EMail: jaimem@iadb.org EMail: monvois@gret.org

Damian Miller Bill Moomaw

Shell Renewables Winrock International

Shell Centre, Tower Building 1611 N. Kent Street

London Suite 600

United Kingdom Arlington, VA 22209

Phone: 44-71-934-4580 Phone: (703) 525-9430

Fax: Fax: (703) 243-1175

EMail: EMail: wmoomaw@winrock.org

Nicole Miller Joy Morgenstern

Sentech, Inc. University of Pennsylvania

4733 Bethesda Avenue 641 E St. NE

Suite 608 Washington, DC 20002

Bethesda, MD 20814 Phone: (202) 543-1072

Phone: (301) 654-7224 Fax: (202) 543-1072

Fax: (301) 654-7832 EMail: joym999@aol.com

EMail: nmiller@sentech.org
1/18/99 Page 41 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Wolfgang Mostert Robert Muhn

Wolfgang Mostert & Associates AstroPower, Inc.

Dalparken 6 Solar Park

Gentofie 2820 Newark, DE 19716-2000

Denmark Phone: (302) 366-0400

Phone: 45-3963-6131 Fax: (302) 368-6474

Fax: 45-905070 EMail: rmuhn@astropower.com

EMail: wmostert@compuserve.com

Shannon Murphy

Lawrence Mott Rocky Mtn Alternative Technologies

Northern Power Systems 18580 West 60th Avenue

One North Wind Road Golden, CO 80403-1045

P.O. Box 999 Phone: (303) 273-9463

Waitsfield, VT 05673-0999 Fax: (303) 279-6448

Phone: (802)-496-2955 x39 EMail: rmat@sni.net

Fax: (802)-496-2953

EMail: lmott@northernpower.com

Connie Murry Cole

The Jemison Group, Inc.

Belguedi Mourad P.O. Box 591455

EMTOG Houston, TX 77259-1455

1818 H Street, NW Phone: (713) 486-7918

F-8-K-222 Fax: (713) 486-5970

Washington, DC 20433 EMail: 5698285@mcimail.com

Phone: (202) 458-1573

Fax:

EMail: M.R.L.N. Murthy

Consultant

302, Sahara Apartments

Ahmed Muhaidat Deonar Farm Road, Doenar

Royal Scientific Society Bombay 400 088

P.O. Box 1438 India

Al-Jubeaila Phone: 91-22-556-0479

Amnan 11941 Fax: 91-22-556-3615

Jordan EMail: dmrln98@hotmail.com

Phone: 962-6534-4701

Fax: 962-6534-4806

EMail: pv@rss.gov.jo
1/18/99 Page 42 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Amos Mushaninga Carlos Navarro

President's Office CFE

P. Bag 7700, Causeway Rio Atoyac 97-309

Harare Col. Cuauhtemoc 06598

Zimbabwe Mexico

Phone: 263-04-707091 Phone:

Fax: 263-04-703326 Fax:

EMail: solar@harare.iafrica.com EMail: villalba@d001.cfemex.com

Pete Myers Silverio Navarro

W. Alton Jones Foundation Solar Electric Company

232 East High Street E. Lopez Street

Charlottesville, VA 22902 Iloilo City 5000

Phone: (804) 295-2134 Philippines

Fax: (804) 295-1648 Phone: 63-33-3200368

EMail: director@wajones Fax: 63-33-3200368

EMail: solar@skyinet.net

John Myles

Duke Solar Buck Neely

P.O. Drawer 10 EET

Sanford, NC 27331 1226 Lula-Moon Lake Road

Phone: (919) 776-2000 Dundee, MS 38626

Fax: (919) 774-1979 Phone: (601) 337-4208

EMail: srisolar@aol.com Fax:

EMail: eet@clarksdale.com

Jon Naar

Solar Electric Light Company Vaughn Nelson

35 Wisconsin Circle, Suite 510 WTAMU Alternative Energy Inst.

Chevy Chase, MD 20815 West Texas A&M University

Phone: (301) 657-1161 Box 60215

Fax: (301) 657-1165 Canyon, TX 79016-0001

EMail: nwilliams@selco-intl.com Phone: (806) 656-2731

Fax: (806)-656-2733

EMail: vaughn.nelson@wtamu.edu

Gary Nakardo

National Renewable Energy Lab

1617 Cole Boulevard

Golden, CO 80401

Phone: (303) 384-7468

Fax: (303) 384-7419

EMail: gary_nakardo@nrel.gov
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Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Tendai Neshamba Mieko Nishimizu

Department of Energy World Bank

Ministry of Transport and Energy 1818 H Street, N.W.,

Private Bag 7758 Washingtion, DC 20433

Harare Phone:

Zimbabwe Fax:

Phone: 263-04-793773 EMail:

Fax: 263-04-703326

EMail: solar@harare.iafrica.com

Milton Nogueira

Aguasol

Charles Newcomb P.O. Box 2231

National Renewable Energy Lab San Anselmo, CA 94979-2231

1617 Cole Boulevard Phone: (415) 256-9619

Golden, CO 80401 Fax: (415) 256-9619

Phone: (303) 384-7071 EMail: aguasol@aol.com

Fax: (303) 384-7097

EMail: charles_newcomb@nrel.gov

Gary Norton

Northern Power Systems

Mark Newton 1 North Wind Road

Winrock International Waitsfield, VT 05673

1611 N. Kent Street Phone: (802) 496-2955 x11

Suite 600 Fax: (802) 496-2953

Arlington, VA 22209 EMail: gnorton@northernpower.com

Phone: (703) 525-9430

Fax: (703) 243-1175

EMail: mnewton@winrock.org Sally O'Connor

Xavier University

7325 Palmetto Street

Michael Nicklas New Orleans, LA 70125

Innovative Design, Inc. Phone: (504) 483-7506

850 W. Morgan Street Fax: (504) 488-7977

Raleigh, NC 27603 EMail: soconnor@xula.edu

Phone: (919)-832-6303

Fax: (919)-832-3339

EMail: nicklas@innovativedesign.net Kyran O'Sullivan

World Bank

1818 H Street, NW

Rm F5K-190

Washington, DC 20433

Phone: (202) 473-2722

Fax: (202) 522-3743

EMail: kosullivan@worldbank.org
1/18/99 Page 44 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

K.A. Oduro-Kwarten Richard Orawiec

ACP Low Keep Refrigeration

12942C Grays Pointe Road P.O. Box 409

Fairfax, VA 22033 Fernnville, MI 49408

Phone: (703) 802-0734 Phone: (616) 236-6179

Fax: (703) 802-6622 Fax: (616) 236-6186

EMail: EMail: lowkeep@datawise.net

Lily Ojinaga Ron Orozco

Consultant Energia Total, Ltd.

Calle 33 #1703, Col. Altavista 451 W. Meadowlark Lane

Chihuahua 31320 Corrales, NM 87048

Mexico Phone: (505) 890-1534

Phone: 52-14-29-3445 Fax: (505) 890-1559

Fax: 52-14-29-3300 EMail: 72633.3461@compuserve.com

EMail: dcomer@buzon.chihuahua.gob.mx

Fatimata Ouedraogo

Ken Olson SONABEL

Solar Energy International 103 G Street, SW

P.O. Box 715 Apt. B-220

Carbondale, CO 81623 Washington, DC 20024

Phone: (970) 963-8855 Phone: (202) 484-1456

Fax: (970) 963-8866 Fax:

EMail: sei@solarenergy.org EMail: kgaba@worldbank.org

Mark Opel Ralph P. Overend

SunLight Power International National Renewable Energy Lab

1800 M Street, NW 1617 Cole Boulevard

Suite 300 MC 1613

Washington, DC 20036 Golden, CO 80401-3393

Phone: (202) 293-6238 Phone: (303) 275-4450

Fax: (202) 223-5537 Fax: (303)-275-2905

EMail: mopel@++corp.com EMail: ralph_overend@nrel.gov
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October 6 -8, 1998

Srimuasan Padmanabhan Pedro Paulet

World Bank Consultant

1818 H Street, NW Redon 288, San Borja

Washington, DC 20433 Lima 41

Phone: (202) 658-1543 Peru

Fax: (202) 677-2743 Phone: 51-1-346-1567

EMail: spadmanabhan@worldbank.org Fax: 51-1-346-0555

EMail: ppaulet@infoweb.com.pe

Bikash Pandey

Winrock International-REPSO Jehova Pena

P.O. Box 1312, APROSC Bldg. Winrock International

Ram Shah Path 1611 N. Kent Street, Suite 600

Kathmandu Arlington, VA 22209

Nepal Phone: 809-562-1201

Phone: 977-1-254687 Fax: 802-562-0495

Fax: 977-1-262904 EMail: jehova.pena@codetel.net.do

EMail: winrock@wlink.com.np

Michele Pena

Lolo Panggabean Climate Institute

Winrock International 120 Maryland Avenue, NE

Jl. Mendawai III/2 Washington, DC

Kebayoran Baru Phone: (202) 547-0104

Jakarta 12130 Fax: (202) 547-0111

Indonesia EMail: mpena@climate.org

Phone: 62-21-720 6125

Fax: 62-21-739-6481

EMail: ybul@indo.net.id Osvaldo Pereira

Winrock International

Av. Luiz Tarquinio Fonks, No 2580

Jean Pasternak Villas Trade Center

World Business, Inc. Laurode Freitas

1819 H Street, NW Brazil

Suite 600 Phone: 55-71-379-1759

Washington, DC 20006 Fax: 55-71-379-1759

Phone: (202) 293-0612 EMail: respowib@magiclink.com.br

Fax: (202) 223-8437

EMail:
1/18/99 Page 46 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Odalis Perez Stephen Phillips

USAID Dominican Republic Advanced Energy Systems, Ltd.

Calle Leopoldo Navarro #12 14 Brodie Hall Drive

Santo Domingo Bentley 6102

Dominican Republic Australia

Phone: (809)-221-1100 Phone: 619-470-4633

Fax: (809)-221-6565 Fax: 619-470-4504

EMail: operez@usaid.gov EMail: sjp@aesltol.com.au

David Petri Jon Pietruszkiewicz

Sun Electric Bechtel

P.O. Box 92221 9801 Washingtonian Blvd.

Austin, TX 78709 Gaithersburg, MD 20878-5356

Phone: (512) 288-4813 Phone: (703) 748-9425

Fax: (512) 301-8573 Fax: (703) 748-9444

EMail: mdieter@worldnet.att.net EMail: jpietrus@bechtel.com

Joe Philip Yvan Pinchinat

Energetics, Inc. Ministere Des Travaux Publics

501 School St., SW Palais Des Ministeres

Suite 500 Port-Au-Prince

Washington, DC Haiti

Phone: (202) 479-2748 Phone: 509-22-3240

Fax: (202) 479-0154 Fax: 509-23-4798

EMail: jphilip@energeticsinc.com EMail: ypinch@hotmail.com

Michael Philips Klaus Preiser

Energy Ventures International Fraunhofer ISE

P.O. Box 5844 Oltmannsstr. 5

Takoma Park, MD 20913 Freiburg D79100

Phone: (301) 891-1010 Germany

Fax: Phone: 49-76145-88228

EMail: mphilips@digex.net Fax: 49-761-4588217

EMail: preiser@ise.fhg.de
1/18/99 Page 47 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Mayka Puente Gaurav Rajen

Winrock International GAIA Research, Inc.

1611 N. Kent Street 6720 Hensch, NE

Suite 600 Alburquerque, NM 87109

Arlington, VA 22209 Phone: (505) 828-2556

Phone: (703) 525-9430 Fax: (505) 828-2556

Fax: (703) 243-1175 EMail: grajen@nmia.com

EMail: mpuente@winrock.org

Glenn Rambach

Hardjono Purwandono Desert Research Institute

Yayasan BINA USAHA LINGKUNGAN Box 60220

Jl. Mendawai III/2 Reno, NV 89506

Kebayoran Baru Phone: (702) 677-3158

Jakarta 12130 Fax: (702) 677-3303

Indonesia EMail: glennr@sage.dri.edu

Phone: 62-21-720-6125

Fax: 62-21-739-6481

EMail: ybul@indo.net.id Mark Ranalli

Niagara Mohawk Energy

507 Plum Street

Kevin Rackstraw Syracuse, NY 13204

Consultant Phone: (315) 460-3399

6500 Pyle Road Fax: (315) 460-3325

Bethesda, MD 20817 EMail: ranallima@nmenergy.com

Phone: (301) 263-0028

Fax: (301) 263-0042

EMail: krackstraw@compuserve.com Anand Rangarajan

WorldWater Corp.

55 Route 31 South

Mohammed Rahman Pennington, NJ 08534

Nature Conservation Management Phone: (609) 818-0700

304 Chandanpura Fax: (609) 818-0720

Chittagong 4203 EMail: pump@worldwater.com

Bangladesh

Phone: 880-31-615114

Fax:

EMail:
1/18/99 Page 48 of 64

Attendee List

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October 6 -8, 1998

Rajindar Rangi Raul Raudales

Natural Resources Canada MDI Corporation

580 Booth Street 669 Stevens Street

13th Floor Lowell, MA 01851

Ottawa, Ontario K1A 0E4 Phone: (978) 937-3460

Canada Fax: (978) 459-9768

Phone: (613) 992-9672 EMail: mesoamerican@juno.com

Fax: (613) 996-9416

EMail: raj.rangi@nrcan.gc.ca

Gautam Reddy

ASE Americas, Inc.

K. Usha Rao 4 Suburban Park Drive

Winrock International-REPSO Billerica, MA 01821

No. 7 Poorvi Marg, Vasant Vihar Phone: (978) 667-5900 x209

New Delhi 110057 Fax: (978) 663-7555

India EMail: gbnsepv@aol.com

Phone: 91-11-614-2965

Fax: 91-11-614-6004

EMail: usha@winrock.emet.in James Reilly

Edison Technology Solutions

6040 N. Irwindale Avenue

Duane Rasumssen Irwindale, CA 91706

Terra Moya Aaua, LLC Phone: (626) 815-0501

2020 Carey Avenue Fax: (626) 334-0793

P.O. Box 706 EMail: jreilly@edisontec.com

Cheyene, WY 82003

Phone: (307) 772-0200

Fax: (307) 772-0220 Philippe Renaudat

EMail: tma.globalwind@worldnet.att.net World Business, Inc.

1819 H Street, NW

Suite 600

Chrisantha Ratnayake Washington, DC 20006

World Bank Phone: (202) 293-0612

1818 H Street, NW Fax: (202) 223-8437

Rm MC 10-722 EMail:

Washington, DC 20433

Phone: (202) 473-3260

Fax: (202) 458-2909 David Renne

EMail: cratnayake@worldbank.org National Renewable Energy Lab

1617 Cole Boulevard

Golden, CO 80401

Phone: (303)-275-4648

Fax: (303)-275-4675

EMail:
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Attendee List

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October 6 -8, 1998

Beth Richards Rob Rocheleau

Winrock International Green Power Development

1611 N. Kent Street 35 Theresa Drive

Suite 600 Hudson, MA 01749

Arlington, VA 22209 Phone: (978) 568-9006

Phone: (703) 525-9430 Fax:

Fax: (703) 243-1175 EMail: earthsun@ma.ultranet.com

EMail: ehricha@sandia.gov

Suzanne Roddis

Ms. Riswahyuti World Bank

LPE-YBUL Indonesia 1818 H. Street, NW

Jln. Mendawai III, No. 2 Washington, DC 20433

Kebayuran Baru Phone: (202) 473-0719

Jakarta Selatan Fax: (202) 473-5123

Indonesia EMail: sroddis@worldbank.org

Phone: 62-21-739-6481

Fax:

EMail: John Rogers

SOLUZ, Inc.

55 Middlesex Street

Salvador Rivera Unit 221

World Bank N. Chelmsford, MA 01863-1561

1818 H Street, NW Phone: (978) 251-5290

Washington, DC 20433 Fax: (978) 251-5291

Phone: (202) 473-1131 EMail: jhrogers@igc.apc.org

Fax: (202) 477-0558

EMail: arivera2@worldbank.org

Len Rogers

Electrotek Concepts, Inc.

Steve Rizer 2111 Wilson Blvd., Suite 323

The Solar Letter Arlington, VA 22201

9124 Bradford Road Phone: (703) 351-4492 x130

Silver Springs, MD 20901-4918 Fax: (703) 351-4495

Phone: (301) 565-2532 EMail: len@electrotek.com

Fax: (301) 565-3298

EMail:
1/18/99 Page 50 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Darwin Rosales Daniel Ruoss

Industry & Energy Research Dev. Enecolo AG

DOST Complex, Gen. Santos Ave. Lindhof 235

Bicutan, Taguig Monchaltorf CH-8617

Metro Manila 1604 Switzerland

Philippines Phone: 44-1-994-90-01

Phone: 8372935 Fax: 44-1-994-90-05

Fax: 8372925 EMail: enecolo@active.ch

EMail: dros@pworld.net.ph

Anastase Rwegayura

Richard Rosey Embassy of Tanzania

EBARA Solar, Inc. 2139 R Street, NW

811 Route 51 South Washington, DC 20008

Large, PA 15025 Phone: (202) 939-6125

Phone: (412)-382-1254 Fax: (202) 797-7408

Fax: (412)-382-1251 EMail: balozi@tanzania_embassy-us.org

EMail: dickr@ebarasolar.com

John D. Ryan

Christopher Rovero USAID

Winrock International 1025 Thomas Jefferson St., NW

1611 N. Kent Street Suit 170

Suite 600 Washington, DC 20007

Arlington, VA 22209 Phone: (202) 944-2513

Phone: (703) 525-9430 Fax: (202) 944-2352

Fax: (703) 243-1175 EMail: jehryan@genv.org

EMail: cjr@winrock.org

Ahmad Abu Sabah

Tommy Rueckert Palestinian Energy Authority

U.S. Department of Energy P.O. Box 3591

Phone: (202) 586-0942 Alersal Street, Alersal Bldg.

Fax: (202) 586-5127 Ramallah

EMail: Palestine

Phone: 972-2298-6190

Fax: 972-2298-6191

EMail: pierro@planet.edu
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Attendee List

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October 6 -8, 1998

Jean Sabourin Arun Sanghvi

CIDA World Bank

200 Rue Promenade du Portage 1818 H Street, NW

Hull, Quebec K1A OG4 MC9-427

Canada Washington, DC 20433

Phone: (819) 997-4742 Phone: (202) 458-2504

Fax: (819) 997-4759 Fax: (202) 473-5123

EMail: jean_sabourin@acdi-cida.gc.ca EMail: asanghvi@worldbank.org

Thom Sacco Michael Sanio

U.S. Department of Energy Global Environmental Facility

1000 Independence Ave, SW 1818 H Street

Washington, DC 20585 Washington, DC 20433

Phone: (202) 586-0759 Phone: (202) 458-0263

Fax: (202) 586-1605 Fax: (202) 522-3240

EMail: thom.sacco@hq.doe.gov EMail: msanio@worldbank.org

Eric Sandor Iman Santoso

277 South 4th Street P.T. PLN

Philadelphia, PA 19106 Jl. Trunojoyo Blok M1/ 135

Phone: (215) 629-7063 Jakarta 12160

Fax: Indonesia

EMail: Phone: 62-21-7251263

Fax: 62-21-7227042

EMail: isantoso@pln.co.id

Rolf Sandor

Consultant

277 South 4th Street Pierre Savary

Philadelphia, PA 19106 World Bank

Phone: (215) 629-7063 1818 H Street, NW

Fax: Washington, DC 20433

EMail: Phone: (202) 473-8772

Fax: (202) 522-3486

EMail: psavary@worldbank.org

Daniel Sandoval

E.J.S.E.D.S.A.

4600 S.S. de Jujuy

Independencia 60

Argentina

Phone: 54-88-23959

Fax: 54-88-232006

EMail: ejsedsa@mail.imagine.com.ar
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October 6 -8, 1998

Aloisio Schmid Jefferson Seabright

Universidade Federal Do Parana USAID

Rua General Carneiro, 16 Ronald Regan Bldg., Room 308

Curitiba, PR 80060-150 Washington, DC 20523-3800

Brazil Phone: (202) 712-1864

Phone: 5541-361-3076 Fax: (202) 216-3230

Fax: 5541-262-8991 EMail: jseabright@usaid.gov

EMail: alschmid@uol.com.br

Rajesh Searma

Britta Schmidt Hetauda Municipality

Solelec-TOTAL Energie P.O. Box 1177

41, rue Henri Becquerel Kathmandu 44601

ZI de Jarry Nepal

Baie-Mahault 97122 Phone: 977-1-245859

Guadeloupe Fax: 977-1-280066

Phone: 590-26-78-79 EMail: wenergy.mos.com.np

Fax: 590-26-74-48

EMail: solelec@mediaserv.net

Gabrielle Seeling-Hochmuth

Energy & Development Research

Helga Schulting P.O. Box 26362

Southwest Windpower Hout Bay

2131 N. First Street Cape Town 7873

Flagstaff, AZ 86004 South Africa

Phone: (520) 779-9463 Phone: 27-21-790-6522

Fax: (520) 779-1485 Fax: 27-21-790-6220

EMail: helga@windenergy.com EMail: gab@phantom.eri.uet.ac.za

Emanuele Scoditti Nadjib Sefta

ENEA World Bank

Via Anguillarese, 301 1818 H Street, N.W.

Casaccia Washington, DC 20433

Rome 00060 Phone: (202) 473-5027

Italy Fax: (202) 473-5123

Phone: 39-06-30484042 EMail: nsefta@worldbank.org

Fax: 39-06-30486452

EMail:
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October 6 -8, 1998

William Seils Raphael Semiat

Besicorp Group Technion Institute

1151 Flatbush Road Chemical Engineering Dept.

Kingston, NY 12401 Technion City

Phone: (914) 336-7700 Halfa 3200

Fax: (914) 336-7172 Israel

EMail: bs@besicorp.com Phone: 972 4 8292009

Fax: 972 4 8230476

EMail: cesemiat@technion.ac.il

Michael Selig

Xenergy, Inc.

1025 Connecticut Ave, NW Richard Senou

Suite 1110 World Bank

Washington, DC 20036 1818 H Street, NW

Phone: (202) 872-1626 Washington, DC 20433

Fax: (202) 872-1635 Phone: (202) 473-4003

EMail: mselig@xenergy.com Fax: (202) 473-5123

EMail: rsenou@worldbank.org

Nancy Selman

Selman & Company Jeff Serfass

23 Cardinal Road SunLight Power International

Weston, CT 06883 1800 M Street, NW

Phone: (203) 227-4111 Suite 300

Fax: (203) 227-4103 Washington, DC 20036

EMail: selmanco@aol.com Phone: (202) 293-6238

Fax: (202) 223-5537

EMail:

Sanford Selman

Selman & Company

23 Cardinal Road Jay Shaefudin

Weston, CT 06883 Orion Energy

Phone: (203) 227-4111 10087 Tayler Place, #5

Fax: (203) 277-4103 Ijamsville, MD 21754

EMail: selmanco@aol.com Phone: (301) 831-1212

Fax: (301) 831-1337

EMail: jshaefudin@orionenergy.com
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October 6 -8, 1998

Mary Shaffner Rajesh Sharma

Trace Engineering Hetauda Municipality

1637 Irving Street, NW Ramshah Path

Washington, DC 20010 P.O. Box 1177

Phone: (202) 797-2324 Kathmandu

Fax: (202) 588-1103 Nepal

EMail: shaffner@clark.net Phone: 977-1-280066

Fax: 977-1-280066

EMail:

Pallavi Shah

Antares Group Inc.

4351 Garden City Drive Naiem Sherbiny

Suite 301 NAZ Enterprises, Inc.

Landover, MD 20785 P.O. Box 10701

Phone: (301) 731-1900 Arlington, VA 22210

Fax: (301) 731-1904 Phone: (703) 524-3470

EMail: pshah@idsonline.com Fax: (703) 524-3873

EMail: nazinc@erols.com

Abolghasem Shahbazi

North Carolina A & T St. Univ. Robert Sherwin

1601 E. Market Street Atlantic Orient Corporation

Greensboro, NC 27411 Farrell Farm Road, Rt. 5N

Phone: (919)-334-7787 Norwich, VT 05055

Fax: (919)-334-7270 Phone: (802)-649-5446

EMail: ash@ncat.edu Fax: (802)-649-5404

EMail: aoc@vermontel.net

Jawid Shahryar

Solec International, Inc. Larry Shirley

970 East 236th Street North Carolina Solar Center

Carson, CA 90745 NC State University

Phone: (310) 834-5800 x207 Box 7401

Fax: (310) 834-0728 Raleigh, NC 27695-7401

EMail: jshahryar@solecintl.com Phone: (919) 515-3480

Fax: (919)-515-5778

EMail: larry_shirley@ncsu.edu
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October 6 -8, 1998

Judy Siegel Virinder Singh

World Bank Renewable Energy Policy Project

1818 H Street, NW 1612 K Street, NW

MC9-541 Suite 410

Washington, DC 20433 Washington, DC 20006

Phone: (202) 473-3268 Phone: (202) 293-1197

Fax: (202) 477-2743 Fax: (202) 293-5857

EMail: jsiegel@worldbank.org EMail: virinders@aol.com

Sofus Simonsen Chandra Sinha

North Carolina Solar Center World Bank

4213 Arbutus Drive 1818 H Street, NW

Raleigh, NC 27612 Washington, DC 20433

Phone: (919) 787-8074 Phone: (202) 458-7475

Fax: (919) 515-5778 Fax: (202) 614-0130

EMail: sofus_simonsen@ncsu.edu EMail: csinha@worldbank.org

Dilawar Singh Khalid Siraj

CASE World Bank

14 Rodinga Close 1818 H Street, NW

Rossmoyone, WA 6148 Washington, DC 20433

Australia Phone:

Phone: 61 8 9354 7051 Fax:

Fax: 61 8 9321 7497 EMail:

EMail: dsingh@case.gov.au

Nachsa Siren

Inder Mohan Singh Chuuk State

Astrum Investments Pty, Ltd. P.O. Box 607

8 Paton Close Chuuk, FM 96942

Winthrop, W.A. 6150 Micronesia

Australia Phone: 691-330-5353

Phone: 618 9310 1854 Fax: 691-330-2633

Fax: 618 9472 0876 EMail: swinter@mail.fm

EMail: isingh@central.murdoch.edu.au
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October 6 -8, 1998

Scott Sklar Joel Snow

Solar Energy Industries Assoc. Iowa State University

122 C Street, NW 123 O & L Bldg

4th Floor Int'l Inst.Theor & Applied Physics

Washington, DC 20001-2109 Ames, IA 50014

Phone: (202) 383-2604 Phone: (515) 294-0341

Fax: (202) 383-2670 Fax: (515) 294-9933

EMail: plowenth@seia.org EMail: jasnow@iastate.edu

Randall Smidt Yanqin Song

Energy Technologies, Inc. National Renewable Energy Lab

40 Wall Street, 23rd Floor 1617 Cole Boulevard

New York, NY 10005 Golden, CO 80401

Phone: (212) 430-4150 Phone: (303) 275-4630

Fax: (212) 798-7771 Fax: (303) 275-4611

EMail: rsmidtl@aol.com EMail: ysong@nrel.gov

Adam Smith Christian Sorensen

Echelon International Danida

28 Clarke Street Asiahsk Plads 2

Burlington, VT 05401 Copenhagen 1448

Phone: (802) 660-9463 Denmark

Fax: (802) 660-9469 Phone: 45-33-92-00

EMail: asmith@together.net Fax:

EMail:

Pete Smith

NRECA/Bolivia Leonard Spearman

4301 Wilson Blvd. Coppin State College

Arlington, VA 22203 2500 West North Ave.

Phone: 591-2-787895 Baltimore, MD 21216

Fax: 591-2-786931 Phone: (410) 462-8795

EMail: g_pete_smith@compuserve.com Fax: (202) 488-2705

EMail: ecrasby@coppin.edu
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October 6 -8, 1998

Steve Spitzer Frank Stewart

Heart Interface U.S. Department of Energy

21440 68th Avenue South U.S. DOE Field Office

Kent, WA 98032 1617 Cole Boulevard

Phone: (253) 872-7225 Golden, CO 80401

Fax: (253) 872-3412 Phone: (303)-275-4700

EMail: spitzer@heartinterface.com Fax: (303)-275-4790

EMail: frank_stewart@nrel.gov

Geoffrey Stapleton

Integral Environmental Energies Debby Stone

PO Box 6366 US Hydropower

Blacktown 2148 122 C Street, NW #400

Australia Washington, DC 20001

Phone: 61-2-4228-2999 Phone: (202) 383-2536

Fax: 61-2-4228-2890 Fax: (202) 383-2555

EMail: staple@intergral.com.au EMail: debbys@usecre.org

Garry Staunton Glenn Strahs

AEAT Technology Environment U.S. Department of Energy

154 Harwell 1000 Independence Ave., S.W.

Oxfordshire OX11 ORA EE-121

United Kingdom Washington, DC 20585

Phone: 44-1235-432-494 Phone: (202) 586-5348

Fax: 44-1235-432-948 Fax: (202) 586-5124

EMail: garry.staunton@aeat.co.uk EMail:

Erich Stephens Leo Sullivan

Consultant Sulas Solar Systems

11 South Angell Street, #196 P.O. Box 4599

Providence, RI 02906 Winter Park, FL 32793-4599

Phone: Phone:

Fax: Fax:

EMail: erichs@worldnet.att.net EMail:
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October 6 -8, 1998

Dave Sutton Christopher Thomas

Advanced Energy Systems, Inc. Organization of American States

P.O. Box 262 17 Ave and Constitution, NW

Riverview Mill Room MNB2

Wilton, NH 03086 Washington, DC 200006

Phone: (603)-654-9322 Phone:

Fax: (603)-654-9324 Fax: (202) 458-3011

EMail: dsutton@advancedenergy.com EMail:

Rob Taylor Marti Thomas

Science Applications Int'l Corp. U.S. Department of Energy

10260 Campus Point Drive 1000 Independence Ave. SW

MS-W2 Rm 6A-055

San Diego, CA 92121 Washington, DC 20585

Phone: (619) 646-9124 Phone: (202)-586-6814

Fax: (619) 546-6335 Fax: (202)-586-5145

EMail: taylorro@saic.com EMail:

Roger Taylor Bob Thresher

National Renewable Energy Lab National Renewable Energy Lab

1617 Cole Boulevard 1617 Cole Boulevard

Golden, CO 80401 Golden, CO 80401

Phone: (303) 384-7389 Phone: (303) 384-6922

Fax: (303)-384-6490 Fax: (303)-384-6999

EMail: roger_taylor@nrel.gov EMail: robert_thresher@nrel.gov

Ernesto Terrado Mark Tomlinson

World Bank World Bank

1818 H Street, N.W. 1818 H Street, NW

Washington, DC 20433 Washington, DC 20433

Phone: (202)-473-3252 Phone: (202) 473-4936

Fax: (202) 522-3483 Fax: (202) 473-5123

EMail: dbarnes@worldbank.org EMail: mtomlinson@worldbank.org
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October 6 -8, 1998

Dan Ton Paul Turner

U.S. Department of Energy West Angeles Development Corp.

1000 Independence Avenue, S.W. 3045 S. Crenshaw Blvd.

Washington, DC 20585 Los Angeles, CA 90016

Phone: (202) 586-4618 Phone: (626) 302-2063

Fax: (202) 586-8148 Fax: (626) 302-5669

EMail: EMail: turner@sce.com

Ken Touryan Godfrey Turyahikayo

National Renewable Energy Lab UNDP/GEF

1617 Cole Boulevard P.O. Box 7270

Golden, CO 80401 Amber House

Phone: (303)-275-3009 Kampala

Fax: (303) 275-3040 Uganda

EMail: ken_touryan@nrel.gov Phone: 256-41-257-863

Fax: 256-41-230-220

EMail: grt@imul.com

Richard Truly

National Renewable Energy Lab

1617 Cole Boulevard Joe Underwood

Golden, CO 80401 Duke Solar

Phone: (303) 275-3011 400 South Tryon Street

Fax: (303) 275-3097 Charlotte, NC 28202

EMail: richard_truly@nrel.gov Phone: (704) 382-8795

Fax: (704) 373-6970

EMail: jnunderw@dukeengineering.com

Peter Tu

National Renewable Energy Lab

1617 Cole Boulevard Boris Utria

Golden, CO 80401 World Bank

Phone: (303)-384-6969 1818 H Street, NW

Fax: (303)-384-6901 Washington, DC 20433

EMail: peter_tu@nrel.gov Phone: (202) 473-4488

Fax: (202) 473-5123

EMail: butria@worldbank.org

Odil Tunali Payton

World Bank

1818 H Street, NW

Washington, DC 20433

Phone: (202) 473-6774

Fax: (202) 522-3256

EMail: otunalipayton@worldbank.org
1/18/99 Page 60 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Luis Vaca-Soto Peter Varadi

World Bank P/V Enterprises, Inc.

1818 H Street, NW 4620 N. Park Avenue

Washington, DC 20433 # 1606W

Phone: (202) 473-8587 Chevy Chase, MD 20815

Fax: (202) 676-1821 Phone: (301) 657-9110

EMail: lvacasoto@worldbank.org Fax: (301) 657-9110

EMail: pvaradi@aol.com

Paul van Aalst

Consultant Scott Vaupen

Ruysdaelkade 153 Xinergy Resources

Amsterdam 1072 AS 3122 9th Road North Suite Three

Netherlands Arlington, VA 22201

Phone: 31-20-4715257 Phone: (703) 243-9468

Fax: 31-20-4715258 Fax:

EMail: paulvanaalst@wxs.nl EMail: xinergy@aol.com

Jos Van De Ven Luis Vega

Shell International Renewables PICHTR

Shell Centre 2800 Woodlawn Drive

London SEI 7NA Suite 180

United Kingdom Honolulu, HI 96734

Phone: 44-171-934-2386 Phone: (808) 262-5520

Fax: 44-171-934-7144 Fax: (808) 539-3892

EMail: EMail: vega@htdc.org

Robert van der Plas Gloria Vigil

World Bank National Renewable Energy Lab

1818 H Street, NW 1617 Cole Boulevard

F2K-136 Golden, CO 80401

Washington, DC 20433 Phone: (303) 384-6926

Phone: (202) 472-3249 Fax: (303) 384-6901

Fax: (202) 614-0011 EMail: gvilil@nrel.gov

EMail: rvanderplas@worldbank.org
1/18/99 Page 61 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Marilyn Villanueva Robb Walt

Winrock International Community Power Corporation

1611 N. Kent Street 15796 East Chenango Avenue

Suite 600 Aurora, CO 80015

Arlington, VA 22209 Phone: (303)-690-7869

Phone: (703) 525-9430 x645 Fax: (303)-617-1280

Fax: (703) 243-1175 EMail: robbcpc@aol.com

EMail: mv@winrock.org

Robert Walters

Laura Vimmerstedt ENTECH, Inc.

National Renewable Energy Lab 1077 Chisolm Trail

1617 Cole Boulevard Keller, TX 78248

Golden, CO 80401 Phone: (817) 379-0100

Phone: (303) 384-7346 Fax: (817) 379-0300

Fax: (303) 384-7411 EMail: walters@entechsolar.com

EMail: laura_vimmerstedt@nrel.gov

Deling Wang

Daniel Waddle NGO Energy & Climate Change

NRECA 202 West 82nd Street, 4th Fllor

115 Canterbury Road New York, NY 10024-5439

Oak Ridge, TN 37830 Phone: (212) 330-9015

Phone: (423) 482-4631 Fax: (212) 645-2214

Fax: (423) 482-5137 EMail: deling@ige.org

EMail: dan_waddle@compuserve.com

Cecile Warner

Andy Walker National Renewable Energy Lab

National Renewable Energy Lab 1617 Cole Boulevard

1617 Cole Boulevard Golden, CO 80401

Golden, CO 80401 Phone: (303)-275-4617

Phone: (303)-384-7531 Fax: (303)-275-4675

Fax: (303)-384-7411 EMail: cecile_warner@nrel.gov

EMail: andy_walker@nrel.gov

Bill Warnock

William Wallace Consultant

National Renewable Energy Lab 776 Cottage Lane

1617 Cole Boulevard Boulder, CO 80304-0758

Golden, CO 80401 Phone: (303) 443-9863

Phone: (303)-384-6476 Fax:

Fax: (303)-384-6490 EMail:

EMail: wallaceb@tcplink.nrel.gov
1/18/99 Page 62 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Byron Washom Thomas Weissenhorn

Spencer Management Associates Consultant

P.O. Box 724 Mammostr 1

Diablo, CA 94528 Memmingen 87730

Phone: (925) 743-9196 Germany

Fax: (925) 743-9197 Phone: 49-8331-8558-23

EMail: spencermgt@aol.com Fax: 49-8331-8558-11

EMail: solar.technic@steca.de

Morgan Watson

Southern University Jim Welch

4402 Anton Avenue Ronote Power International

Baker, LA 70714 318 Wheelbee Street

Phone: (504) 927-7240 Fort Collins, CO 80524

Fax: (504) 927-1560 Phone: (970) 498-8947

EMail: watson@engr.subr.edu Fax: (970) 484-6389

EMail: jwelchgaol.com

Carl Weinberg

Weinberg Associates Stephen Werner

Sustainable Energy Development Teledyne Brown Engineering

42 Green Oaks Court 300 Sparkman Drive NW

Walnut Creek, CA 94596-5808 Huntsville, AL 35805

Phone: (510) 933-9394 Phone: (256) 726-1599

Fax: (510) 932-2275 Fax: (256) 726-1597

EMail: poppacarl@aol.com EMail:

Jerome Weingart Ron White

Jerome Weingart & Associates National Renewable Energy Lab

4001 N. 9th Street 1617 Cole Boulevard

Suite 1108 Golden, CO 80401

Arlington, VA 22203-1963 Phone: (303) 384-7533

Phone: (703) 358-8663 Fax: (303) 384-7419

Fax: (703) 524-8372 EMail: ron_white@nrel.gov

EMail: solarjerom@aol.com
1/18/99 Page 63 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Charles Whitlock Michael Willingham

NASA/AS&M, Inc. UNDESD/DSD

One Enterprise Parkway 2 UN Plaza, Room DC2-2246

Suite 300 New York, NY 10017

Hampton, VA 23666-5845 Phone: (212) 963-8796

Phone: (757) 827-4882 Fax: (212) 963-1267

Fax: (757) 825-8659 EMail: willingham@un.org

EMail: c.h.whitlock@larc.nasa.gov

Bruce Wilson

Priyantha Wijesooriya SunWise Technologies, Inc.

RESCO Asia Limited 5309 Lynn Lane

291/34B, Harelock Road Ellicott City, MD 21043

Colombo 5 Phone: (410) 480-6873

Sri Lanka Fax: (410) 462-5635

Phone: 94-74-51205819 EMail: bmwilson@pcbank.net

Fax: 94-74-512059

EMail: yesco@slr.lu

Stephen Winter

Chuuk State

Peter Williams P.O. Box 607

Winrock International Federated States of Micronesia

1611 N. Kent St. Chuuk 96942

Suite 600 Micronesia

Arlington, VA 22209 Phone: 691-330-3000

Phone: (703) 525-9430 Fax: 691-330-2633

Fax: (703) 243-1175 EMail: swinter@mail.fm

EMail: pkw@winrock.org

Tim Wirth

Tom Williams United Nations Foundation

National Renewable Energy Lab Washington, DC

1617 Cole Boulevard Phone:

Golden, CO 80401 Fax:

Phone: (303)-384-7402 EMail:

Fax: (303)-384-7495

EMail: tom_williams@nrel.gov

George Wrigley

Corona Ind.

Greenville, SC 29615

Phone: (864) 244-3479

Fax:

EMail:
1/18/99 Page 64 of 64

Attendee List

9LOODJH 3RZHU#*<;

October 6 -8, 1998

Grace Yeneza

Preferred Energy, Inc.

10/F, Strata 100 Bldg.

Emerald Avenue, Ortiagas Center

Manila 1600

Philippines

Phone: 63-2-631-2826

Fax: 63-2-632-7097

EMail: pei@info.com.ph
Bud Annan delivers Road Warrior challenge.

Richard Hansen.Village Power ‘98 Road Warrior.

Village Power ‘98 Attendees

Village Power ‘98 rec

Photo by: Jerome Weingart

Larry Flowers presents Richard Hansen withthe Village Power Road Warrior Award.

Photo by: Jerome Weingart

Photo by: Jerome Weingart
From Left: Mark Fitzpatrick, Roger Taylor, Judy Siegel, and

Aldo Fabris.

Panel: Organizing for Scaling-up Electricity Access; Modelsfor Sustainable Energy Delivery.

RCMP from left: Malcolm Lodge, Tom Lamb

Photo by: Jerome Weingart

Photo by: Julie Cardinal
Village

Power ‘98entrance.

Attendeesgatherrenewableenergyliterature. Panel: Promoting Productive Uses 

Rural Development.

From Left: Emanuele Scoditti, Daniele Guid

Photo by: Julie Cardinal

Photo by: Julie Cardinal
From Left: Doug Arent,

Jerome Weingart, Art Lilley,Ian Baring-Gould.

Judy Siegel and Arun Sanghvi enjoy the reception.

Attendeesexchangingideas duringa break.

Photo by: J

Photo by: Julie Cardinal

Photo by: Julie Cardinal

Panel: Power Supply Options for Dece
Proceedings of

Village Power ’98

Scaling Up Electricity Access

for Sustainable Rural Development

Volume II

Convened by the National Renewable Energy Laboratory

In collaboration with the World Bank

World Bank Headquarters, Washington, D.C.

October 6-8, 1998
NOTICE

This report was prepared as an account of work sponsored by an agency of the United States government.

Neither the United States government nor any agency thereof, nor any of their employees, makes any

warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness,

or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would

not infringe privately owned rights. Reference herein to any specific commercial product, process, or service

by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its

endorsement, recommendation, or favoring by the United States government or any agency thereof. The

views and opinions of authors expressed herein do not necessarily state or reflect those of the United States

government or any agency thereof.

Available to DOE and DOE contractors from:

Office of Scientific and Technical Information (OSTI)

P.O. Box 62

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Prices available by calling 423-576-8401

Available to the public from:

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or

DOE Information Bridge

http://www.doe.gov/bridge/home.html

Printed on paper containing at least 50% wastepaper, including 20% postconsumer waste
Village Power ’98Village Power ’98 Village Power ’98

Scaling Up Electricity Access

for Sustainable Rural Development for Sustainable Rural Development

Convened by the National Renewable Energy Laboratory

In collaboration with the World Bank

World Bank Headquarters, Washington, D.C.

October 6-8, 1998

Village Power ’98 Proceedings

Organizing/Editing Team

Julie Cardinal, NREL

Larry Flowers, NREL

Judy Siegel, World Bank

Roger Taylor, NREL

Jerome Weingart, Weingart & Associates

Village Power ’98 Proceedings were produced by the

National Renewable Energy Laboratory. For an additional

copy of this document in hard copy (Vol. 1 & 2, $50.00) or

CD-ROM ($10.00), please send a check to:

National Renewable Energy Laboratory

Attn: Conferences

1617 Cole Boulevard

Golden, CO 80401

Please include your name and mailing address.

You can also find the Proceedings and more information about

Village Power on the World Wide Web at:

http://www.rsvp.nrel.gov

CP-500-26264

National Renewable Energy Laboratory

1617 Cole Boulevard

Golden, Colorado 80401-3393

A national laboratory of the U.S. Department of Energy

Managed by Midwest Research Institute

for the U.S. Department of Energy

under contract No. DE-AC36-83CH10093

Printed March 1999
Village Power ‘98

Monday, October 5, 1998, Workshops Page

Sustainable Energy and Gender: A Facilitated Discussion on Linkages ..................................................................................1

Hybrid Systems: Technologies, Applications, and Issues........................................................................................................13

Welcome and Introduction 10:00 - 10:15– Larry Flowers, NREL

Block I: 10:15 - 11:30 Applications

Session Chair: Larry Flowers, NREL

Eco-tourism: Case: Costa de Cocas - David Corbus, NREL...........................................................................................15

Isolated Ranch: Case: Luis Vega, PICHTR.....................................................................................................................21

Small Village: Case: VLA: Ian Baring-Gould, NREL........................................................................................................39

Medium Village: Case: Joanes: Gary Norton, Northern Power Systems ........................................................................45

Large Village: Case: Kotzebue: Malcolm Lodge, Island Technology .............................................................................53

Island System: Niels Andersen, Vestas...........................................................................................................................57

Block II: 12:30 - 1:45 Technologies

Session Chair: Per Lundsager, Darup Associates

DC Bus Systems: Mike Bergey, Bergey Wind Power......................................................................................................61

AC Bus Systems/High Penetration: Steve Drouilhet, NREL............................................................................................63

Battery Diesel Systems: Steve Phillips, AES...................................................................................................................67

Retrofitting Diesels: Ian Baring-Gould, NREL..................................................................................................................71

Hybrids in Europe: Kilian Reiche: Fraunhofer Institute....................................................................................................75

Block III: 1:45 – 4:30 Discussion Forum

Session Chair: Gabrielle Seeling-Hochmuth

Storage: Steve Drouilhet, NREL......................................................................................................................................85

Control Systems: Jim Manwell, University of Massachusetts..........................................................................................91

Technology Needs: Mike Bergey, Bergey Wind Power...................................................................................................95

Tariffs, Metering, and Economics: Peter Lilienthal, NREL...............................................................................................97

Institutional Aspects: Ron Orosco, Energia Total ..........................................................................................................101

Reliability & Track Record: Per Lundsager, Darup Associates .....................................................................................105

Credibility: Bruce Levy, BPG Development ...................................................................................................................109

Block IV: 4:30 - 5:30 International Market Perspectives, Panel Discussion

Session Chair: Larry Flowers, NREL and Per Lundsager, Darup Associates ...............................................................111

Panel members:

Niels Andersen, Vestas

Mike Bergey, Bergey Wind Power

Malcolm Lodge, Island Technology

Steve Phillips, AES

Bob Sherwin, Atlantic Orient Corp.

Art Lilley, Community Power Corp.

5: 30 Closing: Larry Flowers, NREL

Hybrid Power Workshop Attendee List..........................................................................................................................117

Large-Scale Use of Photovoltaic Systems for Off-Grid Applications: Infrastructure Needs and Challenges ...................119

Decentralized Renewable Energy Applications in the Philippines - Silverio T. Navarro................................................121

Municipal Solar Infrastructure Project - Barry Greenwood, Bruce Robins, Katrina Ignacio...........................................145

Funding and Repayment Management of PV System Dissemination in Sri Lanka II - Lalith A. Gunaratne..................157

Lessons Learned in Small-Scale Renewable Energy Dissemination: A Comparison of China and Thailand

- Debra Lew...................................................................................................................................................................169

PV Technology for Global Village Power - Robert R. Walters.......................................................................................189

Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh

- Hasna J. Khan and Asma J. Huque ............................................................................................................................197

iii
Village Power ’98

Appendix B: Monday's Workshops

Sustainable Energy and Gender: A Facilitated Discussion

on Linkages

Hybrid Systems: Technologies, Applications, and Issues

Large-Scale Use of Photovoltaic Systems for Off-Grid

Applications: Infrastructure Needs and Challenges
Village Power ’98

Monday, October 5, 1998, Workshops

Sustainable Energy and Gender: A Facilitated Discussion

on Linkages
1

Summary Report

1/31/99

Barbara C. Farhar, Ph.D.

Workshop Organizer

National Renewable Energy Laboratory

An Informal Workshop in Connection with Village Power '98

Sustainable Energy and Gender: A Facilitated Discussion on Linkages

Monday, October 5, 1998

World Bank

Washington, DC

The Workshop was organized to provide a forum for attendees of the Village Power ‘98 meeting

to discuss sustainable energy and gender, a topic that heretofore had not been on the agenda of

the Village Power meetings. This Workshop was the first time that gender was a formal topic of

the Village Power conferences. Because the Workshop was not listed when Village Power ‘98

was initially announced, most conference attendees had already made their travel plans when they

learned of it, and were unable to attend. Nevertheless, the Workshop’s 15 participants created a

lively and thoughtful discussion that lasted the entire day. Participants, as well as others who

learned of the Workshop but could not attend, requested that another Workshop be held next

year.

Participants introduced themselves and stated their expectations for the Workshop. Participant

expectations for the Workshop included the following:

& Learn more about what others are doing

& Meet colleagues

& Understand why the Workshop is not more well attended

& Become more exposed to literature that exists

& Explore the potential for renewable energy as a mechanism for gender-sensitive programs

& Disperse and share information

& Focus on rural applications, such as battery stations and communications

& Understand investment initiatives in Africa

& Share information on World Bank project: infrastructure and economics micro hydro in

several countries

& Understand how renewable energy can be used more to alleviate poverty, especially in rural

areas

& Develop idea that women are key to getting PV implemented widely

& Develop further understanding of gender issues important in development, and the linkages

& Explore how gender and rural development can be further implemented

& Understanding how to involve more organizations in gender and sustainable energy.
2

Presentations

Joy Clancy, University of Twente, The Netherlands, gave a presentation on ENERGIA. Her

overheads are as follows:

1. How it all started

Preparation phase for Beijing (1995)

It became apparent - despite cross-cutting nature of energy - no international institution had

women and sustainable development as a major objective in the context of energy

Lack of dialogue between gender and energy specialists

Lack of case studies

There were good examples from other sectors:

PROWWESS

FAO, Forest, Trees and People

GTZ Household Energy Programme

UNIFEM

2. Organizations

TOOL Consult

Energy Environment and Development

TDG, University of Twente

Established ENERGIA - a loose network

Objectives

Engender energy

Empower women

Achieved through

Information exchange

Training

Research

Advocacy

Actions
3

Emphasis

Decentralized actions

Putting people in touch

Dialogue between policy makers and field works

Funding

NEDA (DGIS) - mainly for ENERGIA Newsletter

3. What's Been Achieved So Far

ENERGIA News - 7 issues

Theme issues

Circulation of 1,000

and, on basis of no funds:

Training materials

Resources persons at workshops and conferences

Advisory services and work

Advising on project proposal development

Lobbying to include gender in energy

Web Site (WIRE/ISES) www. energia.org

As a consequence . . .

More international energy programmes are taking gender seriously

e.g., UNDP/SEED

NREL

ENERGIA has . . . Inspired/galvanized

Provided support

Provided legitimacy

4. How Does ENERGIA Work?

Membership = anyone who receives ENERGIA News

No formal secretariat

Decentralized, "virtual" organization based around production of newsletter
4

ENERGIA Support Group "Think tank" of 30 professionals

Provide advice and support

5. The Future?

Move from provider of newsletter to facilitator

Putting in touch those who need services with those who can provide services

1. Formalizing ENERGIA into organization with full-time manager

2. Continue with ENERGIA News

3. Resource Centre and further development of web site

4. Regionalization

Extend local membership

Generate articles

Local newsletter

Workshops and training

Bringing groups together for projects

Advocacy on women and energy

5. Grants for study, visits, workshops, seminars and meetings

6. Manuals, training materials, videos

7. Development of case studies, especially non-stoves

Awareness raising

Ellen Kennedy, Winrock International, Washington, DC gave a presentation entitled "Gender

and Renewable Energy: An Issue of Language." Her overheads were as follows:

1. Why does gender get left out of renewable energy projects?

& Lack of capacity

& Lack of history

& Culture and language "disconnect"

2. Lack of Capacity

& Lack of women in energy planning

& Dearth of women engineers in field

& Cultural, credit, or linguistic barriers
5

& Data anecdotal-need more peer review

3. Lack of History

& Renewable energy is still relatively young (some attention in the 1970s)

& Focus on cookstoves

& Past 2-3 years: ENERGIA Network, workshops, seminars, pilot projects

& Would we have had this meeting at Village Power 3 years ago?

4. Culture and Language Disconnect

& Good development professionals identify with the user

& But industry has to operate from the bottom line

Need to translate the importance of gender projects in commercial terms

5. Development Benefits

& Saves time

& Reduces drudgery

& Enables children, especially daughters, to go to school

& Cleaner water, better health

& Cleaner lighting

& Possible income generation uses.

6. But Industry Benefits Are . . .

& Women are key household customers

& Women are excellent credit risks

& Unless purposefully engaged, women may be lost or alienated customers

& Women are good at O&M

& Women are invested in health, education, and other family-related applications.

7. How to Reach Industry?

& Desegregate data for all projects

& Make markets visible

& Team up with other groups working with rural women

& Educate donor community

& Market studies and trials

& Hire women distributors, planners, etc.

8. Doubt Demons
6

& Backlash for rural women?

& Forcing systems on women?

& What about very cheap, locally made energy solutions that don't involve industry?

Elizabeth Cecelski, Energy, Environment and Development, Witterfürth, Germany presented on

Gender, Poverty, and Sustainable Energy.

Overheads for this presentation are included in the regular Village Power '98 Proceedings, and are

not duplicated here. At Ms. Cecelski's request, the Workshop reviewed her presentation for the

Village Power '98 and offered comments and suggestions.

Barbara Farhar, National Renewable Energy Laboratory, presented information on the gender

discussions at the World Renewable Energy Congresses in 1996 and 1998. Highlights of this

presentation included the following:

Women in sustainable energy is both a domestic and an international issue. For example, in the

United States, more than half of low-income households' budgets are needed for rent and utility;

disproportionately high percentages of these households are families of women and children. 

Abroad, most energy in developing countries is supplied and used by women in households. 

Environmental effects include deforestation and desertification, and health problems resulting

from poor indoor air quality.

Energy projects, even sustainable ones, have been largely driven by technology, rather than by the

needs of users.

The potentially significant role of microcredit lending programs to foster sustainable energy and

economic development has been largely overlooked; it is just beginning to receive attention.

The need for education in these areas was stressed.

The renewables industries should be involved in better understanding these potential markets.

Gender issues should be included in the energy programs of major development agencies; energy

should be included in the gender programs of major development agencies.

Discussion

Because the workshop was small, much of the time was spent on discussion. Important themes

on which there was consensus were as follows:

1. In rural areas, access to renewable energy is difficult in general, and even more difficult for

women. For example, access to credit and training is even less for women than it is for
7

men. These barriers need to be overcome by women-specific measures.

2. Participation of local people, including women, is essential for the effective design,

implementation, finance, and maintenance of renewable energy projects. 

3. International financing agencies should integrate energy into their gender policies.

4. Energy projects should focus on the household-level to benefit poor households in remote

rural areas, matching resources with actual household needs.

5. Electricity access can be scaled up by addressing women's energy needs and matching

resources to those needs.

6. Financing should be proactively extended to women for the acquisition of renewable

energy systems.

The importance of gender in Village Power was formally recognized at the Conference's closing

remarks by Roger Taylor, based on Elizabeth Cecelski's presentation and the Workshop.

Workshop Participants

Andrew Barnett

Overseas Development Institute, London

33 Southdown Avenue

Brighton BNI 6EH

United Kingdom

Phone: +44-(0) 1273-506258 Fax: +44-(0)1273-709504

E-mail: abarnett@pavilion.co.uk

Lisa Büttner

Winrock International

1611 N. Kent St., Ste 600

Arlington, VA 22209, USA

Phone: (703) 725-9430 Fax: (703) 243-1175

Website: www.winrock.org
8

Elizabeth Cecelski

EED

Bribachweg 104

D-51515

Kürten Germany

Phone: +49 226 8901200 Fax: +49 226 8901230

E-mail: ececelski@t-online.de

Website: www.energia.org

Joy Clancy, Ph.D.

Technology and Development Group

University of Twente

P.O. Box 217

Enschede 7550 AE

The Netherlands

Phone: +31-53-489353-7 Fax: +31-53-4893087

E-mail: j.s.clancy@tdg.utwente.nl

Website: www.utwente.nl/tdg

Connie Murry Cole

The Jemison Institute for Advancing Technology

Dartmouth College

HB6182 Steele Hall Rm 306

Hanover, New Hampshire 03755-3577 USA

Phone: (603) 646-1282 Fax: (603) 646-1682

Oscar Coto

Fundacion Solar

15 Ave. 18-68 Zona 13

Guatemala City

Guatemala

Phone: (502) 332-2548 Fax: (502) 360-1172

E-mail: funsolar@guate.net

Jose Etcheverry

Department of Geography

University of Toronto

100 St. George St., Room 5045

Toronto Ontario M5S 3G3

Phone: 416/730-1485 Fax: 416/978-6729

E-mail: jose.etcheverry@utoronto.ca

Website: www.geog.utoronto.ca/grads/seut.html
9

Barbara C. Farhar, Ph.D.

Workshop Organizer

Senior Social Scientist

National Renewable Energy Laboratory

1617 Cole Blvd.

Golden, CO 80401 USA

Phone: (303) 384-7376 Fax: (303) 384-7540

E-mail: barbara_farhar@nrel.gov

Website: www.nrel.gov

Jamal Gore

Winrock International

1611 N. Kent Street, Ste. 600

Arlington, VA 22209 USA

Phone: 703/525-9430 Fax: 703/243-1175

E-mail: jgore@winrock.org

Website: www.winrock.org

Shannon M. Graham

International Program Coordinator

Enersol Associates, Inc.

55 Middlesex Street, Ste 221

N. Chelmsford, MA 01863 USA

Phone: (978) 251-1828 Fax: (978) 251-5291

E-mail: sgraham@agc.apc.org

Ellen Kennedy

Winrock International

1611 N. Kent St.

Arlington, VA 22209 USA

Phone: (703) 525-9430, x 646 Fax: (703) 243-1175

E-mail: ekennedy@winrock.org

Website: www.winrock.org; also Repso website on crest - www.crest.solstice/

Joseph McCabe, P.E.

President

Solar Value (Un), Ltd.

5411 Lincoln Street

Bethesda, MD 20817

Phone and fax: (301) 530-1473

E-mail: energyi@nicom.com
10

Jehova Peña

REGAE, Manager

Winrock International

Ave. John f. Kennedy No. 62

Santo Domingo

Distrito Nactional

Dominican Republic

Tels: 562-1836/562-1201 Fax: (809) 562-0495

Beepeer: Skytel: 537-8030/1-200-6835: Unidad: 996-5410

E-mail: jehova.pena@codetel.net.do

Edif. Meteoro, Apto 205 A-B

Mayka Puente

Winrock International

1611 N. Kent St., Ste. 600

Arlington, VA 22209 USA

Phone: (703) 525-9430 x 647 Fax: (703) 243-1175

E-mail: mpuente@winrock.org

Website: www. winrock.org

K. Usha Rao

PV Program Officer

Winrock International

7, Poorvi Marg, Vasant Vihar

New Delhi-110 057, INDIA

Phone: 91-11-614-2965 Fax: 91-11-614-6004

E-mail: usha@winrock.emet.in
Village Power ’98

Hybrid Systems: Technologies, Applications, and Issues

Welcome and Introduction 10:00 - 10:15– Larry Flowers, NREL

Block I: 10:15 - 11:30 Applications

Session Chair: Larry Flowers, NREL

Eco-tourism: Case: Costa de Cocas - David Corbus, NREL

Isolated Ranch: Case: Luis Vega, PICHTR

Small Village: Case: VLA: Ian Baring-Gould, NREL

Medium Village: Case: Joanes: Gary Norton, Northern Power

Systems

Large Village: Case: Kotzebue: Malcolm Lodge, Island

Technology

Island System: Niels Andersen, Vestas

Block II: 12:30 - 1:45 Technologies

Session Chair: Per Lundsager, Darup Associates

DC Bus Systems: Mike Bergey, Bergey Wind Power

AC Bus Systems/High Penetration: Steve Drouilhet, NREL

Battery Diesel Systems: Steve Phillips, AES

Retrofitting Diesels: Ian Baring-Gould, NREL

Hybrids in Europe: Kilian Reiche: Fraunhofer Institute

Block III: 1:45 – 4:30 Discussion Forum

Session Chair: Gabrielle Seeling-Hochmuth

Storage: Steve Drouilhet, NREL

Control Systems: Jim Manwell, University of Massachusetts

Technology Needs: Mike Bergey, Bergey Wind Power

Tariffs, Metering, and Economics: Peter Lilienthal, NREL

Institutional Aspects: Ron Orosco, Energia Total

Reliability & Track Record: Per Lundsager, Darup Associates

Credibility: Bruce Levy, BPG Development

Block IV 4:30 - 5:30 International Market Perspectives, Panel

Discussion

Session Chair: Larry Flowers, NREL and Per Lundsager, Darup

Associates

Panel members:

Niels Andersen, Vestas

Mike Bergey, Bergey Wind Power

Malcolm Lodge, Island Technology

Steve Phillips, AES

Bob Sherwin, Atlantic Orient Corp.

Art Lilley, Community Power Corp.

5: 30 Closing: Larry Flowers, NREL

Hybrid Power Workshop Attendee List
National Renewable Energy Laboratory

National Wind Technology Ce

Costa de Cocos 11 kW Wind-D

Hybrid System

David Corbus

National Renewable Energy Laboratory

Hybrid Power Workshop
National Renewable Energy Laboratory

National Wind Technology Ce

Background of Costa de Cocos Re

Q Small resort in Southern Mexico with existing 

and small battery charging system

Q Need for 24-hour power without running dieseQ Potential for diesel fuel savings by displacing 

with wind energy

Q Owner wanted to use reverse osmosis system 

water desalination

Q Idea of “green power” and ecotourism appeali

owner familiar with nearby Xcalak hybrid powesystem

Q Cost shared funding available
National Renewable Energy Laboratory

National Wind Technology Ce

Why Ecotourism hotels for wind-hybr

Q Ability to pay for system because of cash flow from buQ Owner frustration with existing diesel systemQ “Green marketing” concept appeals to owners and cuQ Smaller ecotourism hybrids are less complicated c

to larger village hybrids....Serve as ideal path fortechnology commercialization

– Mini-grid for resort is small and manageable

– Resort owners typically have good technical for O&– Energy conservation and load management easier 

implement (lighting changed to CFs)

– Metering, billing and sharing of energy not an issue
National Renewable Energy Laboratory

National Wind Technology Ce

Daily Load Profile - 46 kWh/day - No RO Pea

Season 

1

1290

603

3403

4903

6691

2463

340 

0

2000400060008000

1000012000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2

Hour of the day

Load (W)
National Renewable Energy Laboratory

National Wind Technology Ce

Daily Load Profile - 127.4 kWh/day - With RO at Peak Season

4103

6903

8403

5303

3840

6240

9531

4790.0

0

100020003000400050006000700080009000

100001100012000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 

Hour of the day

Load (W)
National Renewable Energy Laboratory

National Wind Technology Ce

Equipment Description

Q Bergey EXCEL turbine - 48-volt winding (no transform

output connected to grid, about 7 kW output for this bacharging application (funding only available for 1 turbin

Q New turbine corrosion package addresses problems

experienced by nearby Xcalak turbines

– Stainless steel hardware used throughout including 

weights; Guy wires use corrosion resistant coatingepoxy encapsulated

Q Lattice type tilt-up towerQ Two “stacked” 5.5 kW TRACE inverters for both 120 a

volt loads (to power RO system) at 11.0 kW total rated 

Q Three parallel strings of Trojan L-16 batteries (nomina

amp-hours at 48 volts = about 50 kWhs storage)
National Renewable Energy Laboratory

National Wind Technology Ce

Diesel Operation

Q Wind system not designed to run the reverse osmosis s

for long time periods; diesel would run the system durinwater loads

Q System originally designed as switched system where 

phase diesel or 2-single phase inverters meeting the lonot both at same time - However, owner bought large Rsystem that inverter couldn’t start

– Inverter surge capability cannot start oversized RO 

so diesel was rewound to two phase and parallel cabetween inverter and diesel used
National Renewable Energy Laboratory

National Wind Technology Ce

Turbine power versus wind speed - all voltages 

0.001.002.003.004.005.006.00

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 

Wind Speed (m/s)

Power Output (kw)
National Renewable Energy Laboratory

National Wind Technology Ce

B attery V o ltag e fo r May

0

1 02 03 04 05 06 0

9 1 9 6 101 106 111 116 121 

D ay o f M o n th

Battery Voltage
National Renewable Energy Laboratory

National Wind Technology Ce

Turbine power vs. wind speed for voltages < 54 volts

0.000.501.001.502.002.503.003.504.004.50

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 

Wind Speed (m/s)

Power Output (kW)
National Renewable Energy Laboratory

National Wind Technology Ce

Turbine Output versus Wind Speed (1 second average)

0.01.02.03.04.05.06.07.0

0 2 4 6 810 12 

Wind Speed (m/s)

power output (kW)
National Renewable Energy Laboratory

National Wind Technology Ce

Summary of Monitoring Results and Lessons L

Q Noise can be an issueQ Existing diesels can be maintenance nightmare - Usua

to buy new diesel

Q Design of 2 phase RO load with three phase existing d

system important

Q Training for RO system importantQ Load management importantQ Turbine corrosion packages available and should be us

salt-spray environments - Long term monitoring of windmachines in these environments important

Q Low loads have resulted in low wind turbine output and 

battery efficiency
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Small village systems - Villa Las Araucari

E. Ian Baring-Gould

National Renewable Energy Labor

Golden, CO. USA
•Villa Las Araucarias

• Inland community on the coastal r• Mainly supported by forest indust• Health post, school and 17 homes• Community very prosperous and

growing

• 9.8 kWh daily load with a 1.2 kW p

estimated.

• Average wind speed of 4.8 m/s
Villa Las Araucarias
Basic System Design

Battery Bank

Trojan 

T-105s or L-16s 

DC Source Center

Plug

AC Source

Cener

To Grid

Wind Turbine

Honda

EZ4500

Generator

WTG

Rectifier

and or

Controler

20 Amp

Control Room

20 Amp

Gen room

Relay

+

60A

21-gL-gG250A Fuse

+

+

+

Inverter

Trace

DX24 or SW30

+

DAS

CR10
Power System Components

• Bergey Windpower Excel 10kW wind

turbine

• 33.6 kWh battery bank of Trojan L-16• Trace Engineering SE3024E inverter• Honda EM4500S 5.4 kW auto-start

gasoline generator

• 48 Volt DC bus with no DC loads• 220 V, 50 Hz AC distribution on a 0.9

grid
Positive Aspects

• System has worked well from th

technical side

• Most problems are of a social na

– Utility– local operators

• Problems can be solved• Utility is pursuing technology in

other areas
Technical Problems - Specifi

• Lightning strike(?) knocked out

equipment - Inverter and turbine

– Grounding enhancement's

• Inverter repair problems (delay)• Battery charging irregularities• Repeated system downtime due 

local system manipulation
Technical Problems - Genera

• Access to spare parts/repair• Inadequate manuals -

– troubleshooting– languages

• Equipment design for sustainab• Poor communications with sites
Social Problems

• System service and repair

– Utility is reactive not proactive– Turnover of key utility personnel– Conflicts between utility branches (Engi

verses Operations)

• Local operators

– Systems treated like fiefdoms– No apparent understanding of operation
Current Status

• System operational• Renewed support from Utility

– Regular general maintenance– Local support of system– Understanding of support requirements

• DAS system operational• Equipment working properly
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DC systems

Mike Bergey

Bergey Windpower Company

Hybrid SystVillage Pow
The Industry

• Village power, home systems and tele• Small Wind: Undercapitalized, mom a

pop industries.

– Production in industry is growing– Industry has some extra money to funnel 

development.
Key markets and issues

• Home hybrid systems (PV, Wind etc) - Allows a higher leve

service then just home PV

• Very good for very small turbine manufactures• Standardization of DC bus systems• Large orders of systems for the same size• Technology is advancing but reliability is still a problem. M

expensive produces trying to reduce the costs while the prodcheaper equipment are trying to increase reliability.

• Inverters are working well• Growing evidence of longer battery life when charged by wi

systems
National Wind Techn

High Penetration AC Bus Wind-Diese

High Penetration AC Bus Wind-Diese

Hybrid Power Systems Hybrid Power Systems

Village Power ‘98 Village Power ‘98

Technical Workshop Technical Workshop

Steve Drouilhet Steve Drouilhet

Sr. Engineer . Engineer

National Renewable Energy Laboratory National Renewable Energy Laboratory

Golden, Colorado, USA
National Wind Techn

Defining the Wind Penetration Defining the Wind Penetration

Energy Penetration Wind turbine AEO Annual primary energy demand

=

Power Penetration Instantaneous wind power output

Primary load

=
National Wind Techn

Low Penetration Systems Low Penetration Systems

< 20% energy penetration < 20% energy penetration

<50% peak power penetration <50% peak power penetration

• Typically only found in retrofit situations Typically only found in retrofit situations• All renewable energy output goes directly to serving 

All renewable energy output goes directly to serving 

load

• Minimal impact on diesel plant operation Minimal impact on diesel plant operation• Few additional control components required Few additional control components required• Higher rate of return on investment possible Higher rate of return on investment possible

• Limited impact on fuel savings, diesel run time, and 

Limited impact on fuel savings, diesel run time, and 

C.O.E.
National Wind Techn

High Penetration Systems High Penetration Systems

> 50% energy penetration > 50% energy penetration

> 100% peak power penetration > 100% peak power penetration

• Larger potential impact on fuel savings, diesel run tim

Larger potential impact on fuel savings, diesel run tim

energy. energy.

• Usually requires energy storage to realize full benefi

Usually requires energy storage to realize full benefi

energy component. energy component.

• Requires additional components (e.g. dump loads, Requires additional components (e.g. dump loads,

synchronous condensers, power converters, etc.) to r

synchronous condensers, power converters, etc.) to r

system voltage and frequency. system voltage and frequency.

• Typically lower rate of return on investment, due to h

Typically lower rate of return on investment, due to h

kW capital cost of system. Situation is helped by red

kW capital cost of system. Situation is helped by red

diesel maintenance cost. diesel maintenance cost.

• Increased system sophistication requires greater supp

Increased system sophistication requires greater supp

infrastructure. infrastructure.
National Wind Techn

Comparison of AC and DC Bus Wind Hybrid Sy

Comparison of AC and DC Bus Wind Hybrid Sy

Issue AC Bus DC Bus

Scale Best suited to systems > 40 kW.

Permits use of larger more costeffective wind turbines

Best suited to small systeSimpler architecture moreasily maintained.

RenewableEnergy Path

Wind turbine power can flowdirectly to the load, without thelosses associated with powerconversion.

All power must flow throa DC/AC converter (rotainverter)

Siting Existing AC distribution lines

can be used to connect windturbines to power system.

Requires dedicated lines connect turbines to powesystem.

ControlComplexity

Active control system requiredto dispatch wind turbines,modulate dump load power,dispatch storage, etc.

Relatively simple systemcontrol. However, embeinverter controls can becomplex.

Cost Often competing with existing

diesel power stations. Must becompetitive with diesel only.

Often offers 24 hr/day powhere none existed. Higcosts are tolerated.
National Wind Techn

Principles of AC Bus Hybrid Power Systems Principles of AC Bus Hybrid Power Systems

• Frequency is controlled by maintaining a balance of Frequency is controlled by maintaining a balance of

real power real power

÷ dump loads dump loads÷ control power to/from energy storage control power to/from energy storage÷ diesel load following diesel load following

> ordinary diesel ordinary diesel> variable speed diesel variable speed diesel

÷ controllable output variable speed wind turbine controllable output variable speed wind turbine

• Voltage is controlled by maintaining a balance of Voltage is controlled by maintaining a balance of

reactive power reactive power

÷ diesel generator voltage regulator diesel generator voltage regulator÷ synchronous condenser synchronous condenser÷ static VAR static VAR compensator compensator
National Wind Techn

AC Bus Wind-Diesel Architecture for Wales, 

AC Bus Wind-Diesel Architecture for Wales, 

Wind Turbines(Induction, Stall-Regulated)

Diesel PlantHydronic Loop

SchoolHeatingSystem

Resistance SCR ControllerHeater

Battery Bank

RotaryConverter

Village Distribution System

Diesel #Diesel #Diesel #
National Wind Techn

Conclusions Conclusions

• High penetration AC bus wind-diesel systems have High penetration AC bus wind-diesel systems have

complex control requirements. Significant complex control requirements. Significantengineering development effort is required. engineering development effort is required.

• AC bus architecture appears to be the more cost- AC bus architecture appears to be the more costeffective choice for larger (>100 kW) hybrid power effective choice for larger (>100 kW) hybrid power

systems systems

• System integration is the key. The individual System integration is the key. The individual

components of an AC system can be as reliable as components of an AC system can be as reliable asthose of a DC system. those of a DC system.
1

Steve Phillips

Advanced Energy Systems

Australia

HYBRID SYSTEMS

• Engines (AC)

• Storage (DC)

• Power Conversion (AC/DC/AC)

• Control (Hardware/Software

• Renewables (AC/DC
2

POWER SUPPLY SYSTEMS

• Cost

• Reliability

• Quality

• Efficiency

COST

• Process Intensive (least materials possible)

• Software Intensive

• Least Storage

• Least Renewables
3

RELIABILITY

• Mature Designs

• Field Experience

• Manufacturing Control

Quality (of power)

• Process Control
Retrofitting Diesels in International Se

E. Ian Baring-Gould

National Renewable Energy Laborato

Golden, Colorado
Retrofitting options

Five types of retrofitting options are seen as mos

• Type A: Adjust diesel size or install a second diese

• Type B: Add automatic controls to an existing diese

• Type C: Install batteries and a power converter to c

load periods.

• Type D: Install renewables to reduce diesel operati

• Type E: Installation of an advance hybrid power sys

will result in shutdown of all diesels.

Retrofit options depend primarily on resource, loa

and the load profile

Simulation models greatly assist in the design pro
Technical issues

• Resource assessment / Data collection

– Always a problem

• System Questions

– stability, voltage, frequency and power system failur– Defining requirements of voltage and frequency– UPS systems for critical loads– Penetration of wind turbine– Control system complexity– Different methods of system stability control (passive– Availability of thermal or controllable loads
Technical issues II

• Continued system support

– Number of systems to allow support infrastructure– Hybrid systems are power systems, they need techn

support like any power plant

– Tariff to allow system sustainability

• Energy efficiency implementations / re-wire

– Electrical efficiency not critical in many diesel plants 

systems do not have them

– The cost to produce an addition kWh of energy while 

diesel is operating is minimal (Avoided cost of diesewith power from renewables/battery it is expansive

– Installation of energy efficient devices is critical to sy

cost
Social issues

• Level of service

– What is currently provided– What is mandated or wanted– Willingness to pay for increased level of service

• Final decision

– Usually based on economics and policy consideratio

(environmental and comfort level secondary)

– Color of money issues

• Tariff structure to insure operation & control gr• Training of utility personnel
Steps in Retrofitting

• Resource assessment (Macro/micro)• Initial social impact assessment: LoS, willingness • Load measurement: Current, new and large lo• Options analysis / feasibility study• Go/no-go decision• Gathering system information• Detailed system design• Specifications of social issues: Tariffs, O&M• Final decision/project funding• System installation/commissioning/DAS• Continued O&M, oversight and expansion
Tres Lagos, Argentina

Existing all diesel power system in remote comm

Community load: 200 inhabitance with 80 power conne

• Hourly average load was 37 kW (17 to 67kW range)• 200 kWh/user/moth• Potential thermal loads• Lots of room for efficiency measures

Wind Data: Collected at the site for about 9 months - Long 

from other area towns

The Tres Lagos diesel plant: 3 diesels w/ local distributio

• Two 80 kW units• One 100 kW unit

Fuel price: $0.37/liter
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National Wind Techn

Energy Storage Storage

for

Hybrid Village Village Power Systems Systems

Village Power ‘98 Village Power ‘98

Technical Workshop Technical Workshop

Steve Drouilhet Steve Drouilhet

Sr. Engineer . Engineer

National Renewable Energy Laboratory National Renewable Energy Laboratory

Golden, Colorado, USA
National Wind Techn

Defining the Energy Storage Capacity Defining the Energy Storage Capacity

• It is convenient to define storage capacity in terms of 

It is convenient to define storage capacity in terms of 

time that the nominal energy capacity could cover th

time that the nominal energy capacity could cover th

load at rated power. load at rated power.

• Example: What is the nominal power duration of a Example: What is the nominal power duration of a

250VDC, 200 amp-hr battery in a power system rate

250VDC, 200 amp-hr battery in a power system rate

100 kW? 100 kW?

Capacity = ×× ×

×

= × ( ) 200 250 ( )

100

30 Amp hr Volts

kW

minu
National Wind Techn

Hybrid Power Systems Use Various Amounts of E

Hybrid Power Systems Use Various Amounts of 

Storage Depending on the Objective Storage Depending on the Objective

Storage Capacity Function of Energy Storage

Very short term(less than 1 minute)

Helps cover the load during the time it takes to start synchronize the backup generator.

• increases system reliability

• reduces required reserve capacity

Short term(5-60 minutes)

Helps cover the load during short term load peaks odeficits, eliminating the need to start the backup gen

• significant reduction in diesel run time and f

consumption

Medium term(2-12 hour)

Stores excess renewable energy to be used to meet tin the day.

• Further reduction in diesel run time and fuel 

• Provides greater utilization of available rene

less renewable energy is wasted

Long term(1-3 days)

Stores excess renewable energy to meet the load duhigher than average load or lower than average reneavailability.

• Possibly eliminates need for back up genera
National Wind Techn

Impact of Energy Storage on a Impact of Energy Storage on a

High Penetration Wind-Diesel Village Power Sy

High Penetration Wind-Diesel Village Power Sy

Fuel Savings and Diesel Run-Time 

2 wtg, "30 min"

3 wtg, No Storage

2 wtg, No Storage

2 wtg, "30 sec"

3 wtg, "30 sec"

3 wtg, "30 

20003000400050006000700080009000

40 45 50 55 60 65 70 

Fuel Savings (% of diesel-only fuel use)

Diesel Run-Time (annual hours)
National Wind Techn

Applicability of Various Energy Storage Techno

Applicability of Various Energy Storage Techno

to Different Storage Requirements to Different Storage Requirements

Storage Capacity Technology Statu

Very short term(less than 1 minute)

NiCad BatteryLead-Acid BatteryFlywheel

CommercialCommercialNear comme

Short term(5-60 minutes)

NiCad BatteryLead-Acid BatteryFlywheel

CommercialCommercialExperimenta

Medium term(2-12 hour)

Lead-Acid BatteryHydrogen

CommercialExperimenta

Long term(1-3 days)

Lead-Acid BatteryPumped HydroHydrogen

CommercialExperimentaExperimenta
National Wind Techn

Some Energy Storage Technologies Used or Prop

Some Energy Storage Technologies Used or Prop

for Hybrid Village Power Systems for Hybrid Village Power Systems

• Lead-Acid Battery Lead-Acid Battery• Nickel-Cadmium Battery Nickel-Cadmium Battery

• Flywheels (Electromechanical Battery) Flywheels (Electromechanical Battery)• Hydrogen Hydrogen• Pumped Hydro Pumped Hydro
National Wind Techn

Lead-Acid Battery Lead-Acid Battery

• Well proven• Reliable if Reliable if

handled properly handled properly

• Moderate cost Moderate cost• High energy High energy

density density

---------------------------- ----------------------------• Limited lifetime Limited lifetime• Corrosive Corrosive

electrolyte electrolyte

• Not tolerant of Not tolerant of

abuse

• Performance Performance

suffers drastically suffers drastically

at low

temperatures. temperatures.
National Wind Techn

Ni-Cd Battery Battery

• Long life Long life• Tolerant of abuse Tolerant of abuse• High energy High energy and

power density power density

• Good low

temperature temperatureperformance performance

• Relatively light Relatively light

weight

---------------------------- ----------------------------• High cost High cost• Cadmium

considered toxic considered toxicmaterial material
National Wind Techn

Flywheels (Electromechanical Battery) Flywheels (Electromechanical Battery)
National Wind Techn

Hydrogen Cycle Energy Storage Hydrogen Cycle Energy Storage
National Wind Techn

Pumped Hydro Pumped Hydro
National Wind Techn

Conclusions Conclusions

• Energy storage is often the key factor in Energy storage is often the key factor in

implementing isolated renewable energy hybrid implementing isolated renewable energy hybridpower systems. power systems.

• Before choosing the type and size of energy storage

Before choosing the type and size of energy storage

the objective must be considered. the objective must be considered.

• In most cases, batteries are still the most cost- In most cases, batteries are still the most costeffective energy storage technology. effective energy storage technology.• Further R&D on advanced storage technologies will Further R&D on advanced storage technologies will

increase the range of options available to designers o

increase the range of options available to designers 

village power systems. village power systems.
Hybrid Systems Control

Jim Manwell

University of Massachusetts

Hybrid SystVillage Pow
Aspects:

• Monitoring• Communication• Control
Issues:

• System Size• Single/Multi generators• Paralleling• Intrinsic control/System control• Sensors• Internal/External Communication
Requirements:

• Safety• Protection• Understandable• Repairable
Monitoring & Power Quali

• Control decision• Fault Detection/Diagnosis• Good quality appreciated
Equipment Hardware

• Robust• User friendly• PC’s / PLC’s
Supervisory Control

• Integration of Components• Multiple Functions• Load Management• “Optimal” Control• Storage/Dump Loads• Diesel Dispatch• Dispatchable Renewables
Common Language?

Do we need a common language so that 

the components in an hybrid power s

can talk to each other and the superv

controller without a great deal of sy

specific coding and control logic
Technology Needs

Mike Bergey

Bergey Windpower Company

Hybrid SystVillage Pow
It is not the technology that we need, i

better market.
Wind Industry Needs

• Wind maps• Lower cost wind monitoring equipment – Cost and collection• Lower cost and simpler systems without lots of changes, syst

run hours. Higher level of robustness

• Better remote monitoring and control. Monitor a vast numbe

systems

• More wind turbine models with high reliability and low cost• Advancements in tariff collection systems. Low cost, low po

usage.

• Super Reliability
Tariffs, Metering & Econom

Peter Lilienthal, Senior Economist

International Programs

National Renewable Energy Laboratory

Hybrid PowVillage PowOctober 5,1
Subsidies

Renewable suppliers trying to capture the subsidies th

conventional rural electrification are playing to theopponents’ strengths.

Instead of using large subsidies to supply a small num

communities with large quantities of energy at low hybrids should use a limited subsidy to supply a lanumber of communities with small quantities of ena high tariff.

Unlike grid extensions and simple diesel systems, hyb

systems can be scaled down in size so that, withappropriate tariffs, full cost recovery is possible.
Tariff Structure

The success of solar home systems is due to their abil

sell power for >$1/kWh without the customer know

With the right tariff structure load growth can finance 

necessary system expansion.

With the right tariff structure, universal service is posTwo-part tariffs:• Place a cap on the financial burden of a subsidy• Ensure that the bulk of the subsidy goes to the poor• Allow the more prosperous to use whatever appliance they ca

to use.
Metering

Metering is mandatory for hybrid systems, but option

part-time diesels.

Pre-pay meters may be the single most important tech

to the widespread usage of hybrid systems.

Rural people understand the value of scarce resources 

will respond to price signals.
End-uses

Most of the energy in remote mini-grids is used for app

whose value is much less than the cost of power.

The value of the first increment of power is MUCH gr

the cost.

Hybrid power systems that power incandescent lights o

conventional refrigerators are management failures.

The slogan “Power to the people” doesn’t apply to 24 h

power delivered to dispersed homes.

In rural areas of developing countries where there is ex

labor, it is more appropriate to transport batteries, icmaterials than to build extensive AC distribution sy
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Credibility

Bruce Levy

BPG Development

Hybrid SystVillage Pow
The Utility/Private Industr

• If you are dealing with the utility or th

industrial market all they want is:

• lower operating cost• high quality and reliability• fast payback

• Life cycle cost is a non-issue, meanin

in the private world

• There is a real need for rural power an

utilities see this
Is there credibility?

No and there is no comparative technol

grid electrification.
If you want to make a proje

You can make a hybrid work even if it i

times more than the diesel if you have following

• Great wind (18mph or greater)• Diesel must be shut off at least 50% of the t• Commercial use for the dump load• Automation• You need to nail down the maintenance issu
Hybrids System Workshop

October 5th 1998. Washington DC

Page 1 of 5

Notes from the 1998 Hybrids Workshop

Held as part of the 1998 Village Power Conference

Washington D.C., October 5th, 1998

Please note that these were my personal notes and although I tried to catch what people were saying I did

not always succeed. I have left out material that was already discussed in specific presentations but tried

to cover all of the questions and answers that followed each presentation. Although I tried to credit

specific people with comments I did miss some and I have left a blank beside the specific comment. In

some cases I was forced to paraphrase, I apologize if I have miss-stated someone’s argument.

In the following segments, I identify people by first name and a last initial. The first time their name is

referenced the last name is also be given in full. Ian Baring-Gould

Applications

Eco-tourism - Costa de Cocos Mexico: Dave Corbus – NREL

Isolated ranch systems: Luis Vega –PICHTR

Questions:

• Failure mode of inverters: Took a long time to have confidence. Control software. Bata system that

was not ready for remote areas, Salt water

• Turbines: Damper problems. Salt and high wind.

• Day to day operation (charge): Fiji- publics work department w/ training

Small village, VLA Chile: Ian Baring-Gould – NREL

Medium sized villages: Gary Norton – Northern Power Systems

Questions:

• PV systems in AK – Some analysis was done and it came out competitive

• Why not use diesel in St. Paul: Political issues.

Large Communities, Kotzebue AK: Malcome Lodge – Island Technologies

Questions:

• Cost? Utility is not putting in much money. Lots of government. 3 turbines from State of AK, Utility

and DOE. 7 additional from DOE.

• What is the penetration? Right now it is low but it will get larger – up to 30% in the next stage

(600kW of wind). Plan on going up to very high penetration. Problems with larger diesels will start

later.

Greek islands: V27-225kW turbines: Niels Anderson – Vestas

Questions:

• Do they plan on expanding the systems? Yes. Vestas is having a hard time finding the market for

specialized turbines and are only installing grid connect

• Corrosion/lightning? Over voltage protection for lightning. Corrosion package increases price of

turbine by 10k.

Technology

DC systems: Mike Bergey – BWP

Questions:

• How can you cut costs by 2? Production economies of scale. Production costs spread over more units

• When will the 30kW unit be ready? Year or year and a half.

• What is the basic advantage of DC over AC? Stability of the systems. There are enough of them out

there so the industry is more advanced. AC’s don’t have this now.
Hybrids System Workshop

October 5th 1998. Washington DC

Page 2 of 5

• Why do you say inverters are working well? Have 800 units in the field and have not reported many

problems.

AC bus systems\high penetration systems: Steve Drouilhet - NREL

AC bus and diesel battery systems: Steve Phillips – AES

Questions:

• Controls add a lot of cost to static inverters, will this come down? Controls are important added value,

also get DAS and SCATA. Price will go down as numbers go up.

• You use gel batteries, are you ready to use Lead Acid? Yes, but wet cells are a problem. Gel cells

also have better draw and discharge ability. LAS have better life.

Retrofitting Diesels: Ian Baring-Gould - NREL

K. Reiche – Hybrid PV systems for Rural energy – Fraunhofer-Institute

Mainly PV/diesel hybrid systems, but also use wind where applicable.

Questions:

• How do you monitor? Have automatic data logging via phone line

• Describe the way the design team works? Had 200 engineers and hired one sociologist.

Discussion Sessions

Storage: Steve Drouilhet–NREL

Types of storage: Looks at LA and NiCad bats, flywheel, pumped hydro, hydrogen. Also air and

hydraulic accumulators.

Stuff is going forwards is Flywheel (Automotive and UPS industry)

General Discussion:

Per Lundsager: Not much direct work on Flywheels – Lester University.

Bob Surwin: Storage of fresh water and Desal in Europe.

Per: No one has really looked at different charge patterns for batteries from an economic point of view.

Kilian Reich: Fraunhofer inst. is doing some work in this.

Mike Bregey: Thinks that rapid cycling of batteries makes it work better

Steve Phillips: Battery throughput is fixed

Dave Corbus: Wind can equalize while PV can’t.

Luis Vaga: Looked at 5 different manufactures and could not get a good life data or estimate of life.

Steve P: The battery is just too expensive, initially and in the life cycle.

Kilian R: Fraunhofer inst. has just reported a report on progress in batteries

Monitoring, communications and control: Jim Manwell –Univ. of Massachusetts

General Discussion:

Should there be a common language?

Steve P: ModBUS communication software is used by AES. This can

Lewis V: thinks that AES has got this done.

Dave C.: we are still in the one off days. Are we ready to give packaged control and data collection.

Steve P.: Bugs come because everybody wants their own stuff with their specific functions. Small

companies can’t do this

Bob S.: People cause problems when they go in and rewrite the software. Bob thinks that this should be

kept hands off and would worry about a common language.

Need simple systems, more complex

Technology Needs: Mike Bergey –BWP

General Discussion:
Hybrids System Workshop

October 5th 1998. Washington DC

Page 3 of 5

Bruce L: feels the real problem is the cost of the power, not the people stopping the project. – for utility

and industrial processes. Privet sector is not the problem because they are $ oriented, governments do

not do this.

Steve P. Every part of the industry needs innovation. Sell the same thing for two years and then upgrade.

Everybody needs technology improvement.

Luis V: You need to have economy of scale to make the systems work. Gensets are cheep and so is fuel.

Need to look at what people can afford. Prepayment meter to supply day by day power.

Per L: Many opinions about what the Europeans need. Make the simple system work the way that we

what them to. Use this to create the credibility for the industry. How do we do this in an industry

that is not presently cost competitive. The perfect system does not work and we have made a failure.

Tariffs, metering and economics: Peter Lilenthal – NREL

Questions:

Are tariffs market based on national standards? They should be whatever the market can bare.

Luis V: Financing failure is a problem

Peter L: We need financing

Art L: There are lots of communities / people that want power without subsidies

Per L: in the beginning you need to subsidize this stuff, once the subsidies start to increase, you are in

trouble. So, we can keep going as long as the subsidies are decreasing.

___ Need a competitive subsidy program that is designed to eliminate itself.

Peter L: As a premature industry you do need subsidies but these things should be targeted and then

removed from the subsidy when it is not needed.

Steve P. Use a three stage structure were AES charges a monthly fee that covers all of

Institutional aspects: Ron Orozco – Energia Total

Questions:

Gary Norton: Exactly who do you need to get involved with

Ian Baring-Gould: Where do you stop working with the people and start working with the utility

Ron O: When you have a strong utility (usually small)

Raj Rangi: In northern Canada you do have problems because there is no benefits. Price of power is fixed

and so there is no real savings to the people by the addition of the renewables.

Peter L: New technologies incur costs and need money

Ron O: need to keep in mind

___: Need to target specific areas, we are in part of the solution

___: We need to develop market so we can develop the technology

Reliability & track record: Per Lundsager – Darup Associates

Nils Anderson: Real price of power in Europe is going down, Wind is now competitive compared to coal

plants. Using the standard conditions, wind is actually lower cost than coal plants for a site of 6.5

m/s. – Grid connect.

Bruce L: Cost is going down because of gas plants. Also wind can’t be dispatched so it has lower value.

They are only add-on’s to the existing power grids. Work great in the developed world but the

developing world is a different question.

Nils A: From an environmental side it is better and Europe has the ability to pay for the environmental

aspects of renewables

Malcome L: Utilities do not work in the area if environment when they have to.

Per L. Cost of energy from wind has decreased over time with Grid connect, why cant we do the same

thing for the village market.

Bruce L: If this is the case, why has the development of the small turbine been abandoned?

Per L. Because people have not seen the market.

Jim M. These type of systems work best if they are larger. Maybe we should be looking at some small

number of large systems on week grids

Per L. How do we make the village market follow the grid market

Kilian R: there is a market for green power in the developing world.
Hybrids System Workshop

October 5th 1998. Washington DC

Page 4 of 5

Credibility: Bruce Levy – BPG Development

General Discussion

Luis V: Who are the “They”

Bruce L: General folk, any body

___: Needs to be automatically controlled to reduce labor costs.

Bruce L: Hybrids will work in very specific places, just need to look for these systems.

Describes the St Paul system. Total cost of 1milion, to eliminate all power from the grid as well as

thermal loading. Funded by a local bank.

Luis V: This is stuff that costs $1000/kW installed, this is to much money and to large a turbine

Bruce L: I can’t compete with you, this is a system that would work and you are working in another type

of system.

Gary N: Hybrids are not necessarily village, hybrids will be implemented in the industry and other

reasons. Village is only a subset (a hard subset) of the whole market.

Discussion: Panel

Larry F: How do we develop the market? We are in this one’s and two’s donor market, how do we go to

the commercial market. Water, Schools, healthposts, Eco-tourism, diesel retrofit. PV is putting

systems everywhere, even if it does not make sense so that there is an industry for hybrids.

John A. Two questions. 1) how do you do the economics of the small users – Art 2) Opportunities for

large systems in specific places.

Bruce: All it takes is someone with money, nerve and the ability to get financing. There is a market, there

is a technology.

Art: How do we get hybrid into village power. Don’t build it on Subsidy. Art goes to the consumer who is

spending $12/month. We need a lot of those people and some financing for the initial instalation. We

need to move on to replication.

Steve P. Technology is secondary, we need a customer. Need to know the Customer. Need to keep up on

regulation and other artificial constraints.

Mike B: It is inevitable that the market will come about. Feels that our technology is at the short end of

the Subsidy chain. We have good technology and so it is a question of political mandate. Everything

is a subsidy issue and we are at the short end of the stick. Pilot projects help.

Kilian R: The CO2 issue is more important in Europe than it is in the US. They are thinking about CO2

emissions and the taxes that will follow. Fraunhofer is getting a lot of calls about this issue. This will

increase the market for renewables. It is a political statement and the market will follow.

Steve P. Planning on a long-term subsidy is playing on thin ice. The projects need to be bankable and

there are many markets where this will not happen.

Bob S. Domestic market did not materialize and it is on hold. AOC was thinking of this as a testing

ground. Domestic market is a vacuum and so we are going to places that we were not ready for.

Have had to move to other areas.

Larry F.: Brazil what is keeping this market opportunity down

Ron O. The market is still open. They are willing to take on the investment (350M/year in diesel subsidy)

but people need to step up to the plate with a technology that will work.

Gary N: It is there but it needs to be from the power perspective, not a renewable energy system

Dave Sutton: Need to be an IPS, can’t be an equipment supplier. Have to do stuff with productive use.

Have to make the power real, bring in $$. Need to get by the transaction costs, need to do a region

not a village.

Bruce L.: Need funded developers and they will pull the equipment (if it is good equipment)

Larry F.: Why is this not happening in Canada

Malcom L. They are the richest rural communities in the world why not renewable. They get it all for

free. No incentive to do anything because there is no value of money, it is just given to them by the

government. Any change will take a political act in deciding that they can not waste .5 Billion a year

funding healthcare and energy in the northern regions. Now that the government is moving to the

regional level, things will change but there is no motivation from the population. Also a bunch of

inside infrastructure that is resistant for change.
Hybrids System Workshop

October 5th 1998. Washington DC

Page 5 of 5

Luis V.: Diesel prices wont change, batteries won’t change. WTG-PV is the only way to make them

feasible. We need to reduce cost by 2. Need to have at least 10 systems to make it work from an

O&M point of view. Putting in 10 systems can take 5 years and will need subsidy for those 5 years to

make the project feasibility.

Larry F.: Richard Hanson has worked the PV side of things and was able to squeak by. Is there a way to

make this work for hybrids?

Mike B. Yes, but with subsidy it will work faster. If you take away the infrastructure (background work,

lawyers, NGO’s) cost (which is subsidized) then you don’t get anywhere fast. What Richard has done

is a good job with sustainability and ownership.

Peter L. Market development, environment and poverty elevation are all reasonable rational for subsidies.

What is the difference between what Bruce and Art are proposing?

Mike B. Trend is the push to private sector development

Bruce L.: We can’t go the PV route because every system will different. We are starting down that trial

because we are standardizing in some ways but we will never get to it

_____: Why should we do hybrids – why should it be subsidized

Lots of clarification discussion

Kilian R: Want to reduce effects on environments

Patricia Delano, WP technology: Need a developer in country

Luis V.: There are private people out there

Larry F.: This is a valid point. We do not have enough people in the world doing this.

Mike B. The PV people have helped this because they have the industry.

Art L.: CPC was started to do act between the technology industry and the customer. The biggest problem

has been finding the risk capital even though there is poof that it works and it is safe money. Things

need to be aimed at replication with people a commercial stake in the project. This will bread

success.

Kilian R: We are going into a solar century, wind, PV etc. Each success story helps us all and so these

should be publicized.

___: Many countries have plans for renewable development. How much of the project is the cost of

Money because these countries have access to cheep money. Development companies should look at

these contras to development potential.

Larry F.: Recognize Javier Castio who is working for replication in Chile. We are trying to make a

partnership between Europe, Australia and the US looking at the operation in hybrids. If you have

operating systems with advanced data collection come talk to Larry.
Hybrid Power Workshop

Attendee List

Scott Aldous NC State University

Daniel Ancona Princeton Economic Research

Niels Andersen Vestas

John Anderson National Renewable Energy Laboratory

Hugo Arriaza National Rural Electrification Cooperative Association

Jorge Ayarza American Wind Energy Association

E. Ian Baring-Gould National Renewable Energy Laboratory

Mike Bergey Bergey Wind Power

Javuer Castillo Consultant for CNE, Chile

David Corbus National Renewable Energy Laboratory

Chris Dabi Climate Institute

Patricha Delano World Power

Roberta DiPasquale Analytical Services & Materials

Steve Drouilhet National Renewable Energy Laboratory

Ray Erbeznik Stirling Technology Company

Larry Flowers National Renewable Energy Laboratory

Katherine Hamilton National Renewable Energy Laboratory

Malek Kabariti National Energy Research Center, Jordan

Omer Kittaneh Palestinian National Authority, Israel

Bruce Levy BPG Development

Peter Lilienthal National Renewable Energy Laboratory

Art Lilley Community Power Corp.

Malcolm Lodge Island Technology, Canada

Cindy Lowry Consultant for USAID

Per Lundsager Darup Associates, Netherlands

Jim Manwell University of Massachusetts

John Maylor Shell International

Jacqes Monovois Groupe De Recherche et D'Echanges Technologiques

Ahmed Muhaidat Royal Scientific Society, Jordan

Charles Newcomb Consultant for NREL

Milton P. Nogueira Aquasol Engineering Sustainability

Garry Norton Northern Power Systems

K Oduro-Kwarten ACP Development & Finance

Ron Orosco Energia Total

Steve Phillips Advanced Energy Systems, Australia

Mark Ranalli Niagara Mohawk

Raj Rangi Natural Resources Canada

Kilian Reiche Fraunhofer institute, Germany

Gabrielle Seeling-Hochmuth Consultant

Raphael Semiat Israel Institute of Technology, Israel

Bob Sherwin Atlantic Orient Corp

Randall Smidt Energy Technologies, Inc

Adam Smith Echelon International

Garry Staunton ETSU

Dave Sutton Advanced Energy Systems, Australia

Luis Vega Pacific International Center for High Technology

Research

Charles Whitlock Analytical Services & Materials

Bruce Wilson Sunwize
Village Power ’98

Large-Scale Use of Photovoltaic Systems for Off-Grid

Applications: Infrastructure Needs and Challenges

Decentralized Renewable Energy Applications in the Philippines

- Silverio T. Navarro

Municipal Solar Infrastructure Project - Barry Greenwood, Bruce

Robins, Katrina Ignacio

Funding and Repayment Management of PV System

Dissemination in Sri Lanka II - Lalith A. Gunaratne

Lessons Learned in Small-Scale Renewable Energy

Dissemination: A Comparison of China and Thailand

- Debra Lew

PV Technology for Global Village Power - Robert R. Walters

Solar Photovoltaic in Rural Electrification: Market Assessment

Survey in Bangladesh - Hasna J. Khan and Asma J. Huque
1

Decentralized Renewable Energy Applications in the Philippines

by

Silverio T. Navarro, Jr.

Solar Electric Co., Inc.

Village Power ‘98

World Bank, Washington, D.C.

Figure 3 SBCS in Sara, Iloilo

The SBCS in Malalison Island

In August 30, 1996 a 300 Wp SBCS was installed in Malalison Island in central

Philippines [4] as shown in figure 4. There were only 9 battery users at that time with only one

TV set in the whole island. The number of battery users grew to 20 within four months of the

SBCS operation.
2

Figure 4 SBCS in Malalison Island, Antique

Two years later, the site was inspected to repair the faulty ampere-hour meter. Utilization

of the station has dropped because two diesel generators are now operating in the island. Of the

110 households, 50 were connected to the genset with a monthly fee of $ 3.75 . There are now 8

TV sets in the community with two video houses. A store runs another generator and operates a

refrigerator producing cold water. The improvement of livelihood in this fishing village was

mainly due to the increase in their catch as a result of a successful resource management program.

As this was anticipated, people in Malalison chose to use diesel gensets because there are

no solar home systems available for them to rent. Fuel is accessible for the genset operator and for

fishing boats. The genset operator claims to have a total monthly collection of $ 125.00 with 50

consumers against an operating and maintenance cost of $ 75.00. Operation of the genset

becomes viable with more than 20 consumers paying $ 3.75 per month.

The SBCS in Malalison still serve battery users in the island that are not connected to the

genset. Their houses are far from the main street and the cost of connection is expensive.

National Power Corporation SBCS Projects

Two pilot solar photovoltaic electrification projects were launched by the National Power

Corporation (NPC) in Mindanao last 1997 [5]. The projects consist of 26 SBCS rated at 300 Wp

and 5 rated at 150 Wp. The projects has an estimated 570 household beneficiaries. NPC provided

PHP 4.5M for the purchase of the charging stations and the DC electrical systems for the

households.

The projects serve as a good investment for NPC since this is an earning venture and not a

complete dole-out. The local cooperative will manage the project to repay back the investment at

a very low interest rate. Revenues generated from the project will be used to purchase additional

SBCS equipment for other unelectrified communities.
3

SBCS for the Underground River

Two hours ride from the center Puerto Princesa , Palawan is an underground river. This

underground river in Sabang is a favorite tourist destination. Adventurous visitors take a boat

with a professional tour guide for $ 6.25 per person to see the spectacular view of stalactites and

stalagmites with a pitch black background. Before, the tour guides use open flame lamps but pose

as a health hazard to tourist and the soot accumulates on the ceiling of the caves. Now, they are

using battery powered lamps that is more convenient and safer to use. Outside the cave are solar

battery chargers mounted on the sand to recharge the batteries used in the cave shown in figure 5.

Applications like this will remain as is because of the nature in the use of PV. In fishing

villages where batteries are used for lights when fishing at night, SBCS are acceptable and in no

way be converted to solar home systems. Running a diesel genset solely for battery charging were

tried in several locations but operation was short lived.

Figure 5 SBCS for the Underground River, Puerto Princesa

Lessons learned

In clustered communities, operation of diesel gensets becomes viable with the higher

energy demand of several households and cheaper distribution cost. Comparing the cost of

connecting to a genset against using batteries in Malalison, the genset monthly fee is $ 3.75 while

the battery charging fee only costs $ 2.00 if done four times per month. What matters most is the

cost of battery replacement every two years or less. Another is the inconvenience of battery

handling. An automotive starting battery with 70 AH capacity costs $ 80.00. If the typical service

life is only two years, the additional monthly expense for using batteries is $ 3.33 for a total of $

5.33 monthly. This makes gensets more attractive and practical in clustered communities with

regular access to fuel.

For communities with scattered households, battery users increase their frequency of

recharging with their increasing demand. This makes battery charging more difficult and not
4

practical anymore. Battery users then move up to solar home systems. If the community has no

access to loans for SHS, their next option is to use a diesel genset.

Successful application of SBCS are those in areas where batteries are used for mobile

applications such as lights for boats. This proved to be more practical and competitive against

running a diesel or gasoline genset just for the purpose of charging batteries.

Rural Photovoltaic Electrification

The Rural Photovoltaic Electrification (RPE) is a project jointly undertaken by the

National Electrification Administration (NEA) and the German Agency for Technical Cooperation

(GTZ) under the Philippine-German Special Energy Program (SEP) [8].

The financial scheme involves the solar generator composed of a solar module, mounting

frame, controller and house wiring amounting to $ 480 financed over 10 years at 12% interest.

This results to a monthly amortization of $ 6.88 with an additional 10% for operation and

maintenance. The household buys the balance of system composed of the battery and loads for a

DC system.

The program is implemented through the Electric Cooperatives (EC) who take care of

installation, operation, monitoring and fee collection of these decentralized systems. SEP provided

50% of the system cost as an incentive to the EC. Households are not subsidized and the full

amount is charged as a commercial project to recover the investment and loan interest. Areas

where grid extension is not considered, a rent to own scheme is offered with $10.50 monthly

payment for 36 months with16% interest.

Initially, SEP selected 10 ECs with good financial and operational performance. From

1992 until the end of 1995, there were 975 households energized and requests for additional 1918

installations were received.

Status of RPE

There are now of 30 ECs involved in RPE. There are 11 ECs in Luzon area, another 12 in

the Visayas and 7 in Mindanao. There were 2,220 systems installed under the RPE program [2]

with a total capacity of 144,479 Wp serving 2,484 households as of June 30, 1998. The

installation is made up of 2,154 SHS and 66 SBCS. The SBCS installed has a total capacity of

4,994 Wp.
5

-

20,0 00

40,0 00

60,0 00

80,0 00

100,000

120,000

140,000

W p

199219931994199519961997

Year

In stalled C ap acity

S ubsidy

RPE

Figure 6 Installed Capacity of RPE project

NEA released $ 182,218.88 to 11 participating Ecs. An amount of $ 28,046.15 was repaid

immediately by four cooperatives for full payment of their loan. A total outstanding loan of $

135,103.19 still have to be collected with an average collection efficiency of 147.9%. Although

the payment term is ten years, households opted for the 3 years rent-to-own scheme. This is why

collection was high with shorter loan repayment periods.

 There are still 4,800 communities to be energized using solar energy from calendar years

2000 to 2010. With a grant of DM 400,000 from the Federal Republic of Germany through GTZ

plus NEA’s counterpart, a funding requirement of $ 90 Million is still needed.

There were 23,876 communities electrified by 120 electric cooperatives using grid

electricity with a total potential of 35,362 communities for 100% electrification [7]. The

Philippine Department of Energy estimates that to reach the 80% electrification goal in the

Philippines will cost $1,500 Million. The same goal can be attained with SHS for $ 72 Million [3].

With lower material requirement, the RPE method needs extended management with higher input

of local labor.

1993 1994 1995 1996 1997

-

50

100

150

200

250

300

350

400

%

Year

RPE Growth Rate

Figure 7 RPE Growth Rate
6

Subsidy

As it was intended, the RPE was designed to fully commercialize photovoltaic

electrification without subsidy. As indicated in figure 6, subsidy was introduced in 1995 and by

1998 grew to 31% of the total project share (figure 7). As the project growth declined after the

boom in 1993 shown in figure 8, subsidy has become a significant factor in the continuation of the

program.

Funding Source

RPE

69%

S ubs idy

31%

Figure 8 Subsidy share on RPE projects

Subsidies do not necessarily mean dole-outs for rural households but another funding

source provided by the local government. Monthly dues are still collected from SHS users to

maintain the systems, making the project sustainable. The local governments find the RPE project

beneficial to their constituents. This has been integrated in their rural development plan to offer

basic services to the communities. With subsidies, ECs are less burdened from loan repayments

and interests.

Photovoltaics in Batanes

Batanes is the north most province of the Philippines composed of three groups of islands;

Batan, Sabtang and Itbayat. Livelihood is mainly agriculture and fishing. Diesel power plants

owned and operated by NPC provide electricity for 3 to 12 hours per day [9]. The current cost of

power production in Batanes is $ 0.439/kWh while the selling rate to the EC is $ 0.063/kWh.

While cost reduction is being explored by NPC-Strategic Power Utility Group (SPUG) with

NREL using wind-diesel hybrid retrofits, Congressman Florencio Abad of Batanes had been

implementing PV projects through the Batanes Development Foundation, Inc. (BDFI) with

systems supplied and installed by Solar Electric Co., Inc.

From 1995 to 1998, a total capacity of 13,671 Wp of solar PV and 1,100 watts of small

wind turbine generator has been installed [10]. These systems include solar power for homes,

municipal buildings, hospitals, health centers, district hospitals, freezers, telecommunication and

wind-solar hybrid potable water pumping systems. A typical system is shown in figure 9. PV

systems were installed as back-up power for grid connected communities and as main power

source for off grid installations.
7

Figure 9 PV installation in Batanes

This is a special case where the population of communities are small, access to fuel is very

difficult. Batanes lies on the typhoon belt and ships delivering goods from Manila only comes less

than ten times a year. Small planes land in the capital, Basco; twice a week but cancel their flight

unpredictably during bad weather. Decentralized systems are practical in this situation because of

big distances between load centers with very low consumption. When there is a major technical

trouble and spare parts are not readily available, decentralized systems has the advantage of

operating independently from other systems.

SPUG’s projection of an average annual growth rate of 9.3% reaching a 56.6% growth in

5 years [9] to justify additional generating capacity seemed to be too high. The isolation of the

island from the main land keeps its energy demand from growing fast. However, PV systems are

modular and can be upgraded according to the growth of energy demand. Because of the

proportion of the Countrywide Development Fund (CDF) of Congressman Abad to the small

population of Batanes, many had benefited much from the solar electrification project. As the

initial investment is subsidized, the users’ responsibility and counter part is the operation,

maintenance of the systems.

Conclusions and Recommendations

PV installations in the Philippines are shown in a map in figure 10.

Factors affecting the use of renewables for electrification

1. Density of households in the area

In areas where transmission line requirement is long and the demand is low, the cost of

transmission may not be justifiable. The next thing to consider is the density of the village.
8

The denser the village, the lower the cost and viability of centralized systems such as

gensets, centralized PV or hybrid systems

2. Access to fuel

Operation diesel gensets greatly depended on the availability of fuel in a particular

location. Fishing villages usually have access to fuel not only for electric power generation

but also for their fishing boats. Access to fuel is more difficult in mountain villages

specially during rainy season. This is where renewables becomes more competitive.

3. Payment capacity of households

The type of energy systems in villages also depends on the income level of the community.

Poor villages tend to use kerosene and dry cell batteries even if the equivalent energy cost

is high because the investment required is low. Energy needs of middle income villages

using car batteries can be met with SBCS. Even high income families with gensets still use

solar home systems for continuous availability of power. When the initial investment is

subsidized, the capacity of the household to maintain the systems should be considered.
9

Figure 10 Location of PV installations

4. Access to financing

Renewable energy systems, particularly PV; is characterized with high initial investment

and low operating cost. Diesel on the other hand has a moderate initial investment,

operating and maintenance costs. Appropriate financing package should be adapted to the

community to match their payment capacity. In the Philippines, loans for renewable are

available to electric and people’s cooperatives through NEA and development banks. This

have been very helpful and effective in the dissemination and use of PV systems. Subsidies
10

are needed initiate a project but should be gradually phased out for full commercial

operation and sustainability.

5. Specific Applications

In applications where the load is small and the value of the service is high, photovoltaic

systems are best suited. With such small electrical load that can be met by a car battery,

PV battery charging is viable and could be the only practical way of replenishing the

charge of the battery as in the situations of the underground river in Sabang, Puerto

Princesa.

References

1. E4, Inc. (1997) Utilizing Area-Specific Cost Analysis to Prioritize Biomass and Co-generation

Investments in the Philippines, Boulder, CO., USA

2. Hernandez N (1998) Status of NEA’s Rural Photovoltaic Electrification Projects, National

Electrification Administration – Alternative Energy Development Department, Manila,

Philippines

3. Bohnke HW (1997) The Experience of GTZ in Disseminating PV – Technology in the

Philippines, Regional Workshop on Solar Power Generation Using Photovoltaic Technology,

Asian Development Bank, Manila, Philippines

4. Navarro S (1997) Photovoltaic Battery Charging Experience in the Philippines, Village Power

’97, Arlington, VA, USA

5. Benavidez P (1998) NPC’s New and Renewable Energy Program & Activities, Conference

presentation: Pole Vaulting Opportunities Towards Sustainable Energy Development, Manila,

Philippines

6. Bohnke HW (1997) Rural Battery Charging Systems – Re-Engineered, Technosol, Osterjork,

Germany

7. Weingart J (1997) Opportunities for Accelerating and Expanding Renewable Energy

Applications for Grid-Connected Power Generation in the Philippines, Winrock International,

Arlington, VA, USA

8. Yeneza G, Bohnke HW (1992) PV in Paradise: The Philippine Rural Photovoltaic Scheme. In:

Solar Energy Commercialization, The Royal Scientific Society, Amman, Jordan PP 471-490

9. Barley D (NREL), Nunez C, Magpoc G, Abergas R (1997) Hybrid Power Systems on the

Philippines Batanes Island, Energy Utilization Division, Strategic Power Utility Group,

National Power Corporation, Manila, Philippines
11

10. Azucena L (1998) Batanes Solar Projects, Solar Electric Co., Inc. Manila, Philippines

Exchange rate:1997 $1 = PHP 25

1998 $1 = PHP 40 DM 1 = $ 1.54

Acknowledgements:

1. Dr. Anne Hizon of Bacolod City for providing the secondhand solar modules for the test run

of the SBCS franchising.

2. Benjamin Huelar for initiating the SBCS franchising in Sara, Iloilo.

3. Nonoy Aspera of Sara for the data on conventional battery charging.

4. Nelfa Macuja of Malalison island for the and information on the SBCS and accommodation

during the visit.

5. Rani Rodriguez of Puerto Princesa, Palawan for the information on the SBCS at the

underground river in Sabang.

6. Noel Hernandez and Herminigildo Manzano of NEA for providing the data on the present

status of the RPE.

7. Congressman Florencio “Butch” Abad, the Batanes Development Foundation and the people

of Batanes for the continued support for the implementation of PV electrification in the islands

of Batanes.

8. Winrock International/ PEI for the data and reports on renewable energy in the Philippines.

9. Mr. Heinz Wolfgang Bohnke of Technosol, Germany for the collaborative work on SBCS.

10. Lyndon Azucena of Solar Electric Co., Inc. for the data on PV installations in Batanes.

11. NPC-SPUG, Dennis D. Barley of NREL for the report on proposed wind-diesel hybrid

retrofits in Batanes Island.

12. DOE-NCED for the data on PV installation in the Philippines.

13. Carmelito Tatlonghari of USAID, Philippines; Jerome Weingart, Hagler Bailey and

Undersecretary Cyril Del Callar for making this report possible.
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MSIP 1

Municipal Solar Infrastructure ProjeVillage Power’ 98Oct.6-8,1998The World Bank,Washington,D.C.Presented

by:

Barry GreenwoodBruce RobinsKatrina Ignacio
MSIP 2

Philippines: Facts and Figures• Population: 71.5 million• Area: 300K square kilometers• 7,100 islands (Luzon, Visayas, Mindanao)• 16 regions; 76 provinces• 1997 energy consumption: 231 Million BFOE• Imported energy- 60%• Indigenous energy-40%
MSIP 3

MSIP: Genesis I• March 1994 - discussions with DoE• March 1994 - strong support, Congressman B• Identify DILG as appropriate implementing ag• DILG requests BP to seek funding from Austr• July 1994 - BP Solar submits application to Au• December 1994 - AusAID “in principle” comm
MSIP 4

MSIP: Genesis II• December 1994 - feasibility study requested b

NEDA

• June 1995 - BP Solar completes FS• AusAID and NEDA assess FS• August 1995 - AusAID Appraisal Team visits P• January 1996 - AusAID Appraisal completed• February 1996 - ICC Tech. Committee endorse
MSIP 5

MSIP: Genesis III• March 1996 - change of gov’t in Australia, all D

projects cancelled

• April to July 1996 - intensive bi-lateral lobbyin• September 1996 - Australian gov’t gives forma• January 1997 - ICC Cabinet gives formal appr• March 1997 - commercial contract w/ DILG sig• June 1997 - loan agreement signed• November 1997 - All preconditions met ; Notic

Proceed issued
MSIP 6

MSIP: ObjectiveImprove the quality of life in remote bara

identified by Social Reform Agenda (SR

byUpgrading/extending the level and qualit

services offered by LGUs
MSIP 7

MSIP: Scope• Largest solar project in the world• Approx. 1000 solar packaged systems• 7 provinces• 47 municipalities• Approx. 400 barangays
MSIP 8

MSIP: SRA Provinces• Guimaras• Eastern Samar• Surigao del Sur• Biliran• Basilan• Sulu• Tawi-tawi
MSIP 9

MSIP: Major Stakeholders• Department of The Interior and Local

Government

• AusAID; EFIC• BP Solar• Filipino People
MSIP 10

MSIP: How ?Using solar technology and compatible 

efficiency equipment

asthe enabling technologytoprovide minimum basic needs
MSIP 11

MSIP: Why Solar Technology?• Modular for Immediate Needs• Appropriate for Village Maintenance• Sustainable• Reliable
MSIP 12

MSIP: What Can Solar Do?• Reliable and Sustainable Power for:

• Vaccine Refrigeration• Potable Water Supply• Communal Lighting• Community TV/Video• Rural Communications
MSIP 13

MSIP: Vaccine Storage• District Hospitals• Rural Health Units• Barangay Health Centres
MSIP 14

MSIP: Potable Water Supply• Municipal Centres and RHU• District Hospitals• Barangays and BHC
MSIP 15

MSIP: Area Lighting• Markets• Fishermen's Wharf• Communal Areas
MSIP 16

MSIP: Quality Lighting• District Hospitals• Rural Health Units• Barangay Health Centres• Municipal Halls• Barangay Halls• Schools
MSIP 17

MSIP: ImplementationTraining facility in Cebu• 16 Advance Teams in field

• Prepare communities• Develop community management teams• Develop fund-raising schemes

• 6 installation teams

• Installing systems• Training municipal engineers & baranga

technicians
MSIP 18

MSIP: What Are The Benefits?• Health, Education, Community Welfare

• Health Services Targeted at Women / Child• Community Participation and Awareness• Communication and Education• Community Health• Social Cohesion
MSIP 19

MSIP: Benefits• Rural Economy

• Increased LGU Efficiency• Reduced Urban Migration• Commercial Activity• Productivity
MSIP 20

MSIP: Benefits• Energy and Environment

• Environmentally Benign• Reduce Fossil Fuel
MSIP 21

MSIP: Benefits• Community

• Improved Governance• Increased Community Awareness• Increased Community Participation
MSIP 22

MSIP: Differential BenefitsWomen in Development

• Targeted Health Services• Improved Security at Night• Reduced Toil
MSIP 23

MSIP: Solar Power in Guimaras
 1

FINANCIAL SERVICES FOR DECENTRALIZED SOLAR ENERGY APPLICATIONS II

Harare, Zimbabwe 20-23 October 1998

FUNDING AND REPAYMENT MANAGEMENT OF PV SYSTEM DISSEMINATION IN

SRI LANKA II

By Lalith A. Gunaratne, Rural Energy Consultant

Background

It has been two years since the first paper was written in October 1996 for the CDG Specialized Seminar “Financing Models of Decentralized Photovoltaic Energy Systems” held in Jakarta, Indonesia in November 1996. Many

developments have taken place in Sri Lanka since then.

These developments hinge on the World Bank and the Sri Lankan government funded “Energy Services Delivery

Project” (ESD). Apart from funds for other renewables, this fund has allocated finances for the installation of

30,000 SHS in the next five years through the private sector. The ESD was established in 1996. With the fund in

place solar PV’s role as a technology for off-grid electrification will be tested.

Currently, there are four solar home system (SHS) project developers in the market, with a few on the sidelines.

However, less than 10% of the allocated funds have yet moved.

Why has the fund not moved faster in the last two years?

The answer lies in the fact that - lack of funds is not the only barrier for successful SHS dissemination, albeit a

major one. Now that funds are available, and in this case with a US $ 100 per SHS GEF grant, one of the most

important issues, being financing, is being addressed.

However, this does not take away the fundamental issues such as:

• the market is far away in remote areas of the country

• cost of doing business in rural areas is high

• the cost of SHS is relatively high for the target rural market

• the urban based banking system is uncomfortable lending in rural areas or for rural projects

• PV technology is relatively new to the financial institutions, policy makers and the market

The ESD funds coming in at the top creates pressure in the system of dissemination and all the above issues are

being forced to be dealt with.

The next few years, Sri Lanka will be one of the places to watch as these unfold.

Introduction

Sri Lankan solar home system (SHS) market is estimated to be over 200,000. These are rural households not

linked to the Ceylon Electricity Board (CEB) grid and earning more than US $ 100 per month. However, over

the last 10 years less than 6000 systems have been sold. The one of the main reasons for this has been the lack of

effective financing schemes for end users. The local SHS promoters lacked resources to offer credit themselves.

Further, the existing mainstream financing institutions shied away from lending in rural areas for SHS.

However, the situation is changing with the recent establishment of the Energy Services Delivery (ESD) project, a

joint Sri Lankan government - World Bank fund of US $ 55 million for the dissemination of renewable energy for

rural areas of the country. Out of this, US $ 10 million is allocated for SHS. This paper will examine how the

ESD has effected the market development of SHS so far.
 2

1. A Brief History of Financing SHS

SHS dissemination in Sri Lanka began with a pilot effort by the utility, the Ceylon Electricity Board, selling systems out of its head office in the capital of Colombo in 1986. Over 700 SHS were sold for cash in two years. This

fact followed by an extensive market and feasibility study prompted the author and the partners to establish Power

& Sun (Pvt.) Limited (now called Solar Power & Light Company Limited) in 1988.

From the inception, the need for an effective credit scheme was well known. An investment of over US $ 200 for

an average rural dweller who earned less than US $ 50 per month was deemed difficult. Power & Sun lobbied the

government owned People’s Bank (with an extensive network of branches in the rural regions) to establish a loan

scheme.

On paper, the People’s Bank scheme, which was established in 1989, showed much promise. However, in reality,

except for a few branch managers who gave a total of about 40 loans, the scheme was not promoted effectively.

There was branch level apathy towards giving small loans to individuals. Further, the worry of a new technology

compounded the lack of interest. A common concern among managers was the recourse available to them if the

loan was defaulted. How and what to repossess in that event was not understood.

Nevertheless, Power & Sun continued to sell most of the SHS for cash through the rural dealer network.

However, there were certain dealers who operated their own informal credit programs. These dealers provided

credit to only well known clients at interest rates of up to 48% per annum when the regular lending rates were between 20-25% per annum. Therefore, only a handful of such loans have been given.

In 1990, government embarked on aid assisted SHS project. The Pansiyagama 1000 Home Project was promoted

by Sunpower Systems (another local company developing the institutional solar PV market) and BP Solar Australia

using Australian aid and Sri Lankan government funds. The National Housing Development Authority (NHDA)

administered the project. Power & Sun was subcontracted to assemble the BP modules in Sri Lanka.

Unfortunately, the “top down” nature of this project created a situation where bureaucracy and politics entangled

with technology and financing. The end result was a project where the end users were not paying the low monthly

payment. Close examination showed that the project did not involve the community in the planning and implementation process. The SHS were installed at give-away prices and monthly payments. The technical service was

poorly administered as well as collection of repayments.

Overall, the project provided valuable lessons to all stakeholders. Technically, most of the SHS in Pansiyagama

yet operate satisfactorily. It is now reported that the repayment rate is about 50% as it is too costly to follow-up

and recover from all the users.

In 1990, two non-governmental organizations (NGOs), Sarvodaya and Solanka embarked on community based

programs to install systems in selected areas. These projects used seed funds facilitated by the Solar Electric Light

Fund of USA and Rotary International. Sarvodaya has installed over 250 systems and Solanka, over 100 systems

with these funds.

Both these projects demonstrated successful SHS dissemination when the process links the technology with financing at the community level. This typical “bottom-up” approach empowered the rural community to understand the technology as well as manage the micro credit programs.

These serve as effective models. However, grant funds have been limited to sustain these types of projects and both

Sarvodaya and Solanka have evolved to utilize commercial funds for SHS dissemination.

Sarvodaya was selected by the World Bank to install 300 SHS as the ESD pilot project. It has taken them well over

18 months to install 150 SHS, but this slow rate of installation has been due to a combination of external and in-
 3

ternal issues for which Sarvodaya had little control over. At the moment Sarvodaya is developing an ambitious

program to install 6000 SHS in 5 years. Sarvodaya has the infrastructure to achieve this through their existing

rural credit network that provides loans mostly for agriculture.

Solanka has evolved into a private company called RESCO, a subsidiary of SELCO-USA. RESCO has already

accessed funds to install 1000 SHS within 1998/9 period and is creating the rural level infrastructure to be a one

stop shop for SHS in selected rural regions. This approach is consumer marketing oriented and the model is developed in a manner where franchise type standard operations can be established around the country as the business expands. The SHS will be marketed in a combination of cash sales, leasing and fee for service methods.

The fee for service concept will be, especially interesting to observe developing as it minimizes the risk to the end

user.

Other private sector developers are also entering the SHS market to take advantage of the ESD credit line.

However, the most interesting development with the ESD project is attracting the mainstream financing institutions to the SHS business.

2. The Energy Services Delivery Project

Ms. Loretta Schaeffer, Program Manager of the Asia Alternative Energy Unit of the World Bank is quoted to have

said on Sri Lanka at the Solar Energy Forum - Soltech 93 - held on 28th April 1993 in Washington D.C.: ‘the

Bank may get involved in providing PV-powered household systems throughout the country as there is a strong

private sector involvement and use of proven local experience in systems design, development, installation, operation and maintenance’.

This was a justification for the World Bank to examine establishing a fund in Sri Lanka to support SHS dissemination.

The Energy Services Delivery Fund was established in August 1997 with the Sri Lankan government, private sector and the World Bank contributing to make a total of US $ 55 million.

2.1 The Objective of the ESD

The broad objective is to promote the provision by the private sector, NGOs and co-operatives of grid connected

and off-grid energy services using environmentally sustainable renewable energy technologies.

2.2 The Loans

The loans will be made available to private sector firms, non governmental organizations, village co-operatives or

any other non government project developer.

The funds can be used for the following;

• grid connected mini hydros

• off-grid village hydros

• solar home systems

• wind power, biomass and other renewables

The funds are channeled to the project developers through mainstream commercial lending institutions which are

private commercial banks. These are called Participating Credit Institutions (PCIs).
 4

2.3 How the ESD Project Works - The Conceptualized Ideal Scenario

The fund is activated when a project developer (PD) requests for funds with a bankable proposal to the PCI.

The PD could be a private company, a NGO or a rural level cooperative.

The PD would have conceptualized a project after assessing the electricity needs of an off-grid community.

The assessment would be based on financial viability of installing a projected number of SHS in the given community.

The role of the project developer (PD);

• assess the market potential

• possess technical capability to design, install and service SHS

• provide consumer financing

• market and promote SHS and financing scheme

• develop a bankable proposal based on the market potential and project feasibility

• negotiate with the PCI

• implement the project

• secure the GEF grant with follow-up documentation

• monitor the project

• repay the PCI

The above would be an ongoing process as a business venture.

A key component of the venture would be financing of the customer. The Business Plan would include the methodology of financing the customer as well as factor in the infrastructure costs for an in-house financing unit. This

unit would assess potential customers, provide the loan to eligible people, and ensure that a system is in place for

collecting the repayment. It should also have clear guidelines for recourse in case of loan default.

The other component is to cost the infrastructure that is required to market SHS and for the technical capability to

install SHS that would meet the customer’s need satisfactorily.

As the customer’s monthly repayment is hinged to the system operating satisfactorily, the PD has to ensure that the

after sales service capability is to a high standard. Ideally, it should be linked to the collection mechanism of the

repayments. All these components have to be factored into the proposal.

The PD would be either one organization or a combination of organizations that bring together the specialized expertise in technical, marketing, and financing in order to develop the SHS market.

Finally, if the project proposal shows a positive return on the investment, the PCIs will entertain it. However, the

proposal’s viability has to be supported with collateral from the PD as with any company getting a loan from a

bank. Once the PD gets the funds from the PCI, it can commence the business of developing the SHS market.

2.5 Getting the Funds to the Customer

The PD would promote SHS and the finance scheme to potential customers. Customers would present themselves

and their electricity needs to the PD. If the customer requires financing, the process to evaluate and finance the

customer will commence. Once the necessarily documentation is completed for financing, the SHS would be installed and PD - Customer relationship commences.
 5

2.6 Making the ESD Project Work

The above is the how the ESD is designed to operate. However, this ideal situation is difficult to realize in reality

for several reasons. First of there is a variety of entities who are potential project developers.

Types of project developers;

a) Private sector SHS vendors (i.e. Alpha Thermal Systems, Solar Power & Light Company)

b) Non governmental organizations (i.e. Sarvodaya)

c) Energy service companies (i.e. RESCO)

d) Rural cooperatives and banks (Thrift and Credit Cooperatives - SANASA)

e) Private Finance companies (i.e. The Finance Company)

f) Private consortiums

g) PCIs ** (i.e. Hatton National Bank)

IDA

Government

of

Sri Lanka

PCIs

PROJECT

DEVELOPERS

SHS

CUSTOMERS

The ESD Financing Model
 6

a) Private Sector SHS Vendors

These are companies that are importing and selling solar PV systems. These developers have their strengths in the

technical, marketing and after sales areas. However, they do not have the expertise to provide financing to endusers. Therefore, if they are to access the ESD credit line to install large numbers of SHS, it is best to do so in

partnership with organizations that have rural lending expertise and preferably, the infrastructure.

However, these partnerships are difficult to create due to the different operating cultures. For instance, entities

involved in rural lending are generally non-governmental organizations or co-operatives like Sarvodaya and Thrift

and Credit Cooperatives.

Nevertheless, companies such as Solar Power & Light Company (formerly Power & Sun) and Alpha Thermal Systems have been borrowing small amounts from the PCIs to install manageable numbers of SHS in a few areas.

For instance, Solar Power & Light Company as a project developer has borrowed ESD funds to install 150 SHS

since June 1997. The company has been installing SHS in partnership with its dealers in the regions. Here, the

dealers take the company one step closer to the customers. The collection of repayments are, however, proving to

be difficult as the company is not geared for that.

Alpha Thermal has installed 100 SHS with ESD funds and they are also having problems in collecting the repayments from many of the customers.

Following are typical steps in the private project developer process (i.e. Solar Power & Light);

• Dealer and an agent would identify a number of potential customers in an area.

• Company then provides the dealer with credit for the hardware based on a guarantee for one year.

• Dealer in turn lends to the customer for up to one year.

• SHS is installed by the company using its technicians and ensures after sales service

• collection of repayments are done by dealer but in cooperation with the technician

Therefore, with the dealer in the middle, the lending risk is minimized somewhat.

However, this method is difficult to practice on a consistent basis for the following reasons;

• commitment to SHS and lending varies from dealer to dealer (not every dealer likes financing)

• varying levels of capability of dealers to market and finance SHS

• lack of a universal system to market SHS with financing makes it difficult to develop an islandwide program

There are other opportunities for these companies where they could create partnerships with, for instance, plantations companies. They could apply for ESD funds jointly to provide lighting for plantation employees who live in

remote areas. These are being explored.

However, the linking with existing NGOs doing micro credit in rural areas would provide a strategic advantage to

private project developers. They would have the specialized expertise in the technology and marketing and the

NGO has its focus on financing.

b) Community Based Non Governmental Organizations

There are many small NGOs scattered around Sri Lanka who have effective micro credit programs. These are regionally based and focused organizations with community involvement. These could become involved in rural

lending for SHS as long as they create partnerships with organizations that specialize in the dissemination of the

SHS technology.
 7

However, there are not many NGOs in Sri Lanka that serve all corners of the country. There are also not many

NGOs that have diverse capabilities to provide financing in rural areas as well as have the capacity to promote a

technology such as solar PV. Sarvodaya Shramadana Society is an exception.

Sarvodaya is one of the largest NGOs in Sri Lanka. It has an extensive rural network and is involved in social,

educational, health care, agricultural, financial and energy related activities.

Sarvodaya Rural Technical Services, the technical division of Sarvodaya, has been involved in SHS since its initial

demonstration projects with the Solar Electric Light Fund (SELF) of USA.

The other advantage Sarvodaya has is its rural lending program administered by the Rural Enterprises Program

(REPS). Through its village level organizations, which are managed by the people themselves, micro credit is

provided for agriculture, home improvement and small businesses.

The initial SELF seed funded project acted as a pilot project utilizing the existing infrastructure to lend to SHS

customers.

The World Bank’s Asia Alternative Energy Unit (ASTAE) subsequently selected Sarvodaya to do the ESD pilot

project for 300 SHS in February 1997. Here, two divisions within Sarvodaya coordinate to implement the SHS

project. The Rural Enterprises Program (REPS) deals with the PCI to secure the funding. SRTS markets, installs

and services the SHS. Both SRTS and REPS ensure that the repayments are made in time.

Currently, 150 SHS has been installed. The slow progress is due to several factors which have been beyond the

control of the implementors of the project. (One problem stemmed from political influence which was enabling

the grid to the be extended or at least promises to be made in the same area the SHS project was targeted in. A

different project area has been selected since)

Nevertheless, Sarvodaya is one organization, due to the extent of it’s developed rural infrastructure, that has the

potential to market a large number of SHS in Sri Lanka. This would be possible once it gets further technical and

marketing capability to do so.

Also, the social oriented culture of Sarvodaya is changing to keep up with the demands of the modern economic

systems. Therefore, Sarvodaya as an organization is moving towards more sustainable commercial areas. Therefore, the SHS business fits well into the new emerging culture of Sarvodaya.

The Sarvodaya SHS project operates in the following manner;

• SRTS and REPS identify a project area

• Develop the bankable proposal for PCI

• REPS negotiates with PCI and accesses ESD Fund

• SRTS/REPS establish area Solar Office

• SRTS officers markets, install and service SHS in the area

• REPS officers evaluates the customers for financing, finances and collects repayments

• REPS repays ESD loan to PCI

Apart from Sarvodaya, a few NGOs are interested in the energy area.

With the planned marketing campaign for the ESD project, such organizations are expected emerge to access the

fund to install SHS and other renewables at varying levels.

c) Energy Service Companies (ESC)

The concept of energy service can be defined as “fee for the service for electricity”, just as the utility provides from

the grid.
 8

However, in the case of SHS, the system will be installed in a household, but it will belong the ESC. The customer will pay a monthly fee for the service, in this case based on the system size.

The ESC has to focus in areas where the rural households are relatively closely located in order to provide the

service economically.

The ESC would have the infrastructure to have a “one stop shop” for the service. For instance, a customer from

the ESC operational area could sign a contract with the ESC to receive a stipulated number of watts or watt/hrs of

electricity in the . The SHS would be installed after this.

This methodology is the ultimate in minimizing the risk to the end user.

However, the risk to the ESC escalates in the following areas;.

• the SHS hardware is ESC’s responsibility, but the way it is used or abused is out of its control

• dispersed nature of the rural population creates logistical problems in managing client base (maintaining SHS

and collecting payments)

However, RESCO is a Sri Lankan company and a part of the SELCO-USA network which will practice this concept as a portion of their business. RESCO has already accessed the ESD to install 1000 SHS and part of the

funds will be used to lend to end users and the other part to operate as an ESC.

This will be an interesting model to monitor as it develops.

d) Rural Cooperatives and Banks

Rural cooperatives are an ideal mechanism to provide financing to SHS customers. Most of these organizations

are managed and operated by the community themselves.

However, the quantum of money that is leant in micro credit programs are typically low as the focus is agriculture

for farmers to purchase fertilizer and seed. (For larger quantum of borrowings, for instance for tractors etc. the

farmers have to deal with either commercial banks or private finance companies which are located in regional

centers.)

The most prominent specialized rural lending organization is the Thrift and Credit Cooperative (or SANASA

which is the better known acronym in Sinhala). This movement was established in 1906 and now boasts over 7

million member households. The organization has three tiers, being the village co-operative, regional centers

and the country level federation. The unique feature of SANASA is the autonomy the village level cooperatives

have in its operation. All the savings that is collected also only get utilized in the village, except for the membership fees for the federation. The federation, in turn provides the financial management systems, training and other

infrastructural inputs.

Further, the federation brokers various outside project funds that maybe relevant for utilization in rural areas.

The ESD may have a role to finance SHS through the SANASA system.

The latest development with SANASA is the establishment of the SANASA Development Bank which is now even

a more legitimate entity to access the ESD funds even as a PCI.

Discussions have just got underway to develop these areas between SANASA and the Administration Unit of the

ESD, the DFCC Bank of Sri Lanka.

Various partnerships between SHS vendors and project developers can be envisioned when SANASA has access to

ESD funds wither directly or indirectly.
 9

There are other rural banks that are emerging and these also have the potential to lend for SHS.

When the national awareness campaign commences, it will become easier to convince these rural bankers as well

as others that Solar PV has an effective role in the rural energy mix.

e) Private Finance Companies

Several private finance companies have been operating in Sri Lanka for the last 25 years. Most of these concentrate on vehicle and land sales. One company, The Finance Company (TFC), however, has a strong presence in

rural areas financing consumer goods. TFC has an extensive regional network and operates with extension officers to remote regions. Currently, TFC continues to finance SHS through the local dealers of Solar Power &

Light Company. Ironically, the TFC financing of SHS does not have the sanction of the head office and the decision to finance is taken by the regional offices. As such, it does not get publicity. TFC management has expressed

interest in participating in the ESD, possibly with a private SHS vendor in the initial stages. However, developments have been slow.

In general, the lending culture of TFC is urban oriented. This needs to change if TFC or any other finance company is to embark on a larger scale SHS lending program. The urban lending culture does not take into consideration the rural culture where defaulting debt, in properly administered programs is a social stigma.

Once again, as awareness of SHS increases with the ESD campaign, more interest maybe forthcoming from TFC

management as well as others.

f) Private Consortiums

As opportunities arise both in the market place and with finance availability, SHS is getting more attention of

larger conglomerates that operate in Sri Lanka. These companies are diverse in their activities from being involved in consumer electronics, tourism to plantations. Interest has been expressed by such entities looking to link

up with finance companies within the group or out side to develop the SHS market. In some cases there is interest

from international solar PV companies to link with these larger companies to develop the local market. Tata BP

Solar of India is one such company.

Even though these organization have wide resource bases in terms of both financial and human capitol, they have

very little knowledge of doing business in remote rural areas. For many, it is yet not very clear that, SHS customers are typically many more kilometers away from even the village center.

This interest has not turned into action as yet. However, the ESD awareness campaign may provide more incentive

for these companies to explore the both the possibilities and challenges more closely.

g) Participating Credit Institutions (PCIs)

According to the established procedures for the ESD, PCIs cannot act as project developers (PD). In effect, if they

lend directly to SHS customers, they would become a PD.

As some of the PCIs such as the Hatton National Bank has existing rural credit programs, it would be natural to

channel ESD funds directly to SHS customers.

In this case, Hatton National Bank has started to lend directly to SHS customers, with a SHS vendor supporting the

marketing and technical side of the operation.

For instance, the vendor, Solar Power & Light has identified many interested SHS customers from an area in

proximity to a HNB branch. HNB has agreed to lend to 10 customers as a pilot. The potential customers have to
 10

be a HNB customer or open an account with the branch. Then the bank, after doing the necessary credit evaluation, finances 70% of the SHS cost of qualified customers.

The ESD project’s US $ 100 grant per system provided by GEF will be passed onto the customer. However, it is

proposed that this amount be held in the Hatton National Bank branch in the customer’s account until the loan

repayment is complete. This amount gives the bank some financial guarantee, as well it acts as an incentive for

the customer to pay the loan. Having this amount at the end of 3 years is a bonus for the customer as part of it

could be used to replace the existing battery. The other option is to discount the capital cost of the SHS by US $

100 in the first place.

Further, the Hatton National Bank has secured a guarantee from Solar Power & Light which ensures that the PV

module will be repurchased by the company in the event of a customer default.

The above scenario, shows that commercial banks are moving forward, even if it is with a lot of caution.

As the program evolves and if it is successful, the Hatton National Bank may increase its exposure and other private vendors will be able to work in partnership to increase the SHS market.

3. The Future of the SHS Financing

The above activities clearly show that the financing of SHS is well on its way. However, there is yet more confidence building of the financing community that is required, if the lending levels are going to be increased to the

1000s of SHS instead of the current few hundreds.

A few interesting models are also emerging as the existing rural lending programs are moving towards SHS lending. With the distinct differences between rural and urban lending cultures, it is easier for these grass roots level

organizations to extend credit for SHS rather than getting the mainstream commercial lenders and private companies to operate.

 However, SHS marketing programs have other implications that complicate the process. They include:

• ensuring the SHS hardware meets certain quality standards to ensure effective operation

• ensuring the installation is done to meet standards

• training the customer to manage the system and do simple maintenance

• providing customer support services and making parts such as bulbs available

• having infrastructure to collect the monthly payment

These additional activities, most of which are highly technical in nature require the organization to learn a new

discipline. For an organization specializing in rural lending, this could be a challenge.

That is where strategic alliances have to be formed between specialists in the technology (such as SHS vendors)

and rural level organizations.

Conclusion

The ESD in Sri Lanka has changed the balance of the equation for SHS dissemination with the availability project

financing. As a such a major barrier has been lifted. However, in the process of moving this fund through the

channels to SHS customers, there are yet many barriers left. This is to do with the intermediaries such as the

commercial banks (the PCIs) not being in the comfort zone yet, when it comes to lending in rural areas and with

the Solar PV as a technology. This is bound to change with time, as more and more ESD loans are taken, SHS

installed and most importantly, the PCIs are repaid by the project developers.
 11

--------------------------------------------------------------------------------------------------------------------------------

References

1. Nagendran, Jayantha., “Accessing Finance for Rural Energy Projects Under the Energy Services Delivery

Project”; Paper Presented at the Workshop on Credit For Rural Energy Projects - Organized by the Energy

Forum; 15th September 1998.

2. Gunaratne, Lalith., “Funding and Repayment Management of Solar PV Dissemination in Sri Lanka”; Paper

presented at the Specialized Seminar on Financing Models of Decentralized Photovoltaic Energy Systems -

sponsored by Carl Duisberg Gessellschaft held in Jakarta, Indonesia ; 25-28 November 1996.
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$ &RPSDULVRQ RI &KLQD DQG 7KDLODQG

National Renewable Energy Laboratory

Prepared by Debra Lew

September 1998
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In the last two decades, governments, multi- and bi-lateral organizations, and non-governmental

organizations throughout the world have tried to disseminate small-scale renewable energy

technologies as an alternative to grid connection in rural areas. However, despite the large

number and extensive history of individual, “one-off” projects, the international community is

only beginning to understand how to sustainably disseminate these technologies. There are

success stories in Kenya, for example, where 80,000-100,000 small solar systems have been

commercially disseminated through the private sector, or in Mexico, where some 40,000 solar

home systems (SHS) have been installed as part of a government-subsidized program. In this

report, we examine the dissemination of small-scale renewable energy technologies in Thailand

and China and discuss the lessons learned.

In commercial or near-commercial dissemination of household-scale renewable energy systems,

China has been perhaps the most successful in the world. They have disseminated about 150,000

small wind turbines, 60,000 micro-hydro units, 5.4 million biogas digesters, tens of thousands of

solar home systems, over 120 million improved biomass cookstoves, and 3 million square meters

equivalent to 1.5 million typically sized panels) of solar water heaters. All of this has been

accomplished through minimal subsidies, a decentralized network infrastructure, and extensive

training and marketing.

Thailand has been very successful in deploying photovoltaic systems for battery charging and

water pumping in its rural areas. As a result of three government programs, Thailand now has

more photovoltaic battery charging stations (over 1000 installations) and probably more PV

water pumping stations than any other country. Their extensive dissemination activities now

service much of the rural, unelectrified population.

The Thai and Chinese approaches to disseminating small-scale renewable energy systems have

been very different, and tailored to the unique conditions of their countries. Thailand’s small

unelectrified population and relative wealth has resulted in a heavily subsidized, governmentdriven program approach. China’s large unelectrified population, limited financial resources,

and industrial capabilities have led to a market-based, government-enabled approach. In both

countries, the role of entrepreneurs or local government agencies to push dissemination and drive

the programs has been essential.

7KDLODQG

There are approximately 66,000 villages in Thailand. Despite a successful and effective gridextension program, 1-2% of the population is too remote or otherwise unable to be gridconnected. Two government agencies run photovoltaic battery charging station (PV BCS)

programs to provide electricity services to these villages: the Public Works Department (PWD)

and the Department of Energy Development and Promotion (DEDP). Additionally, PWD has a

PV water pumping program. Figure 1 shows the cumulative installations of PV BCS through

both agencies over the last decade.
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Figure 1. Cumulative installations of photovoltaic battery charging stations in Thailand1. The

squares represent 3 kW installations by DEDP; the triangles represent 795 W installations by

PWD.

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Khun Wandee Khunchornyakong, managing director of Solartron, Inc., is the main driving force

behind Thailand’s PV BCS dissemination programs2. She was introduced to PV technology in

1981, and decided to market this technology in Thailand, where the solar insolation remains

relatively high year-round. Initially, Solartron targeted Bangkok customers, but they soon found

that the urban market was largely limited to research and education applications.

In 1985, Khun Wandee turned to the rural areas, where the PV technology would be able to

fulfill electrification needs for villages that were not yet grid-connected. Solartron hired

technicians, bought trucks, visited villages that were easily accessible, and demonstrated

applications that would be desirable in rural areas: water pumping and TV. However, despite

great interest in the SHS, the villagers had on hand only a fraction of the 10,000 Baht (US$400)

cost of the systems. Khun Wandee tried to obtain PV loans for the villagers from local banks, but

while the Agricultural Bank was willing to loan for this technology, the villagers had no

collateral: they had already given their land deeds as collateral for fertilizer and other loans.

Solartron decided to provide the financing themselves through a leasing program. The

arrangement consisted of down payments of 1000 Baht, with the remainder paid monthly over

 

1

 Amnuay Thongsathitya, “The Application of Photovoltaic Use in Thailand”, Investigating Directions and

Procedures to Support Photovoltaic Application and Policy Formulation in Thailand, Phuket, Thailand, 10-12 May

1997.

Sophon Phan-i-nakul, “Photovoltaic Program of the Thai Public Works Department”, Public Works Department,

Thailand, 1997.

2

 Wandee Kungchornyakong, “PV Project Development: Approaching Grassroot Groups to Policy Makers for 15

Years”, Institutional Cooperation for Solar Energy in the Mekong Riparian Countries, Hanoi, Vietnam, 11-16 May

1998.

0

200

400

600

800

1000

1200

1988 1990 1992 1994 1996

year

Cumulative number of stations

installed

PWD BCS

DEDP BCS
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7

the next two years. One hundred 50 W systems were distributed with this payment scheme.

Solartron opened a temporary office in Nakhon Ratchasima, the nearest city, and sent a salesman

to collect the fees every month. However, it was difficult to collect the monthly payments: the

salesman might be forced to go out to the rice fields to find the farmers or to return when the

farmers had enough money. The company spent more money trying to collect the fees than the

fees were worth. It was also difficult to deal with nonpayment: Solartron staff found it nearly

impossible to remove PV systems from the homes of impoverished villagers, for whom the

energy services were so important. They ultimately gave away many of the leased systems to the

villagers.

Finally, Khun Wandee decided to take a different tack. The Thai government had a mandate to

provide basic infrastructural services to the rural people. Khun Wandee drew up petitions which

asked the government leaders for PV systems for electricity and water services. Solartron went

out to the villages again and had the villagers sign the petitions, which were then brought to a

Member of Parliament from Nakhon Ratchasima, General Chatichai Choonhavan3. In return for

votes from the rural people, Khun Wandee asked the General for donations for PV systems. He

was convinced and bought 100 modules.

Simultaneously, Khun Wandee’s petition expanded her program to the national level and

thousands of letters flooded into the government, requesting PV water pumping stations and PV

BCS. While political will was being cultivated, it wasn’t clear which government agency would

be most appropriate for implementation. The Provincial Electricity Authority (PEA), the

distribution utility serving all areas outside of Bangkok, wasn’t interested in PV, because it was

purchasing subsidized electricity from the generation utility. The Director-General of the

National Energy Agency (later to become DEDP) was interested in using PV for water pumping,

but in the end it was the PWD which was most amenable to PV and ready to take a proactive

role.

It took three years for the government to allocate the budgets but in 1988, Solartron and the

PWD were able to secure 600,000 Baht and establish 5 PV BCS as a pilot project. Evaluation of

the pilots took place in 1989 and the dissemination phase of the program began in 1990. Later

studies showing that PV lighting was a major factor in declining birth rates in the villages helped

to persuade the government to continue these programs.

Installed PV capacity in Thailand reached 3.4 MW in 1998. The PV water pumping stations and

PV BCS are responsible for 2/3 of this capacity4

. The PV BCS alone make up nearly half of the

total installed PV capacity in Thailand Solartron, with a production capacity of 2 MW/year, is

the largest of the three local companies which assemble modules and integrate systems. There is

not yet PV cell manufacturing in Thailand, but the government is currently funding the

development of an amorphous silicon PV cell manufacturing facility.

 

3

 General Chatichai was elected the Prime Minister of Thailand in 1988.

4

 Other applications of PV in Thailand include communications, grid-connected PV rooftops, hybrids, individual

home systems, and education.
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The PWD estimates that there remain about 3000 villages in extremely remote areas, for which

grid connection is not viable5

. The PWD sees solar PV systems as a possible approach to

supplying small-scale energy for lighting, TV, and water pumping. PWD, a technical

department under the Ministry of Interior, has been responsible for rural development activities

such as road-building and drilling water wells. PWD has a mandate to provide basic rural

infrastructure to improve the living standard of rural people.

Persistent droughts at the end of the 1980’s especially affected the rural people and resulted in

migration to Bangkok and other big cities. The King of Thailand asked all government agencies

to mobilize resources to alleviate immediate hardship and to find sustainable water supplies for

rural areas. PWD responded to this request by beginning two national rural service programs

using PV: the water pumping and BCS applications. Each year PV water pumping and BCS

were to be installed in 50-100 villages. The PV BCS program were to be implemented during

the Sixth (1987-1991), Seventh (1992-1996) and Eighth (1997-2001) National Plans.

Already, PWD has installed over a thousand of the PV BCS throughout the country, especially in

the northern region. The systems are installed by PWD and then turned over to the village to

operate and maintain. The village determines how the station will be run, how much will be

charged, and how the income will be spent. The village also must maintain and repair the

systems by themselves. Because there is little or no follow-up, some systems still exist in

villages which were later grid-connected and some systems are no longer performing optimally.

Due to the 1997 economic crisis, PWD’s budget for the PV BCS has been decreased by an

estimated 40%. This affects installations from 1998 on.

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DEDP estimates that of the 6,000 villages which had not been electrified by 1996, 5,500 were to

be electrified by the Provincial Electricity Authority (PEA) through conventional and nonconventional means: grid-connection, diesel mini-grids, wind/diesel hybrids and PV/diesel

hybrids. They see the remaining 500 villages as opportunities for PV BCS.

The DEDP PV BCS program is modeled on a 4 kW PV BCS demonstration project, jointly

implemented in 1992 by DEDP and the Japanese New Energy and Industrial Development

Organization (NEDO). In this project - “Demonstrative Research for Photovoltaic Power

Generation Systems in Thailand” - a 4 kW PV BCS and a larger PV village system of 40 kW

were installed.

The 4 kW PV BCS was installed in a village of 147 households (about 500 people) in

Kanchanaburi Province, about 250 km northeast of Bangkok. The village is located inside a

national park. Despite nearby high-voltage transmission lines from a hydro power plant, the

village had not been electrified because grid connections are forbidden within the park. The PV

BCS was installed in April of 1993, and is still operational. The village was divided into ten

groups, each with a leader. A project management committee, consisting of a chairperson, vice-

 

5

 There does not appear to be coordination between these plans and PEA’s electrification program.
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9

chairperson, the ten group leaders, and a DEDP technician, was established. The committee is

responsible for overseeing the system, setting charging fees, and allocating funds. The group

leaders are responsible for hooking up the batteries and day to day operations and maintenance.

Charging of the batteries occurs on a rigid

schedule. Each group can charge their

batteries every ten days and every household

is allowed only one battery. NEDO provides

maintenance and checks up on the system

every 4-5 months.

As a result of the success of this PV BCS

demonstration, DEDP used it as a model for

their PV BCS Program which began in 1995.

The program’s goal is to provide basic

electricity services, for some of the poorest,

most remote villages. This program will

benefit 24,000 households in 300 villages

over 5 years. This program is in conjunction

with the King’s decree that for the 50th

anniversary of his ascension to the throne (1996), all villagers will have access to 50 W of

electricity.

The DEDP program learned from lessons in the NEDO demonstration project and incorporated

improved and less expensive technologies into their designs. The charge controllers and

inverters are locally made and can be easily serviced through universities and DEDP. DEDP has

six Regional Energy Centers throughout the country which implement and service the program

as part of their assistance activities in rural energy development.

Unfortunately, due to the 1997 economic crisis, new installations have been halted. DEDP

continues to provide limited service to existing stations, however.

Both of these PV BCS programs are completely subsidized by the national government. The

capital subsidy includes the PV modules, chargers, balance of system, installation, initial set of

batteries and basic training. In the DEDP program, follow-up maintenance is provided and

training is more extensive. Villagers are also given charge indicators which allow them to

determine when the battery should be recharged. The stations are run by committees with fixed

rules; and the charging fees are deposited into village bank accounts. The PWD program turns

the stations over to the villages as infrastructure projects in a more laissez-faire fashion, and

leaves the villages to organize themselves and operate the station.

Despite the similar nature of the two programs, the two government agencies do not collaborate

on technical designs, program implementation or even site planning. As a result, some villages

have one PV BCS from each agency.
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The 1997 economic crisis has suspended or decreased the activities of many governmentsubsidized programs. Rural electrification programs are no exception. Because commercial

markets for PV rural electrification have not been developed, there are now few new

installations. In existing installations where demand has grown, there are no mechanisms to

overcome the significant cost barriers to increase the site capacity. The shrinking government

budgets may now be forcing policy-makers to turn to new market-based approaches with less

dependence upon government support.

For example, at the Ban Huay Ta village in Uttaradit Province, increasing incomes and a

productive use weaving program set up by the Queen has led to a demand for a higher level of

electricity service. The village already has one DEDP and one PWD PV BCS, but the villagers

would like to be able to power fans and refrigerators. The PV BCS operator has surveyed the

village and finds that about 45 households in the community would like to purchase a SHS, and

that their annual incomes are approximately 7,000-10,000 Baht (about $175-250 in 1998).

However, because the two existing PV BCS in the village are virtually free (charging fees are

40-60 Baht/battery/year or $1-1.50/battery/year), the typical 4800 Baht/year ($120/year)

payments for a SHS may seem prohibitively expensive. The PV BCS operator has investigated

costs and thinks he (and other villagers) would need a 50% subsidy in order to afford a SHS.

One option currently being investigated for this and other villages is the establishment of a rural

energy service company (RESCO) which sells energy services, as opposed to PV panels, to

households6

. In this setup, the RESCO would own, operate and maintain the solar home systems

and the households would agree to pay monthly fees based upon their energy consumption. This

RESCO concept eliminates the problems of broken or poorly maintained components and gives

the customers what they really want: electricity (not PV panels). In Kiribati, this service

approach has proven to provide much higher customer satisfaction than the conventional PV

sales approach7

.

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There are some 100 million people in rural China who lack access to electricity. The

combination of dispersed rural populations, expensive grid extension, and low energy

consumption in rural areas means that distributed small-scale systems may be the best way to

electrify the farmers and herdsmen. China's goal is to provide electricity access to 95% of the

farmers by the year 2000. To do this, the national and provincial governments have implemented

a number of programs to electrify rural areas with renewable energy. Many of these programs

are largely commercial or near-commercial. For example, the micro-hydro turbines, some of the

wind turbines and many of the solar home systems are sold without any end-user subsidy.

 

6

 Anil Cabraal, Mac Cosgrove-Davies, and Loretta Schaeffer, Best Practices for Photovoltaic Household

Electrification Programs: Lessons from Experiences in Selected Countries, World Bank Technical Paper Number

324, World Bank, Washington DC, 1996.

7

 Terubentau Akura, “Compare Sales Approach and Energy Service Company Approach for PV in Kiribati for the

Past 15 Years”, Institutional Cooperation for Solar Energy in the Mekong Riparian Countries, Hanoi, Vietnam, 11-

16 May 1998.
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In this report, we detail the dissemination of solar home systems and small wind turbines for

rural electrification in two provinces. We present the work of one Gansu province entrepreneur,

who has taken a market-based approach to dissemination, and the program of the Inner

Mongolian government, which is a government-enabled, market-based approach.

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Gansu is one of the poorest provinces in China. It is located in the northwest, and separates the

central, densely populated areas of China from the remote deserts, mountains and plateaus of the

west. Average annual household (one household contains approximately four people) incomes

range from 2200 to 4500 Yuan (~$265-542). The Gansu utility reports that in 1996, 696,718

households in 1946 villages and 26 townships lacked grid access, although local estimates of the

number of unelectrified households are up to 1 million.

In this region, it is estimated that some 10,000 solar home systems (SHS) have been sold to rural

customers. Although there have been credit and subsidy programs by the Solar Electric Light

Fund (SELF) and the US National Renewable Energy Laboratory (NREL), most of the systems

have been sold commercially as cash sales.

Gansu PV Company is a large, regional PV systems integrator and distributor. We will detail

lessons learned from their history of trial and error with subsidies, credit, and village power

projects. Their experience has led them to sell small individual systems at full cost as cash sales.

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In 1986, Kyocera donated a 10 kW PV system to the Gansu government. It was installed for

rural electrification in a remote part of Gansu province. The villagers were instructed to use their

lights and their TV or cassette player for only four hours per day. However, in practice one

household might leave their lights on for six or eight hours, complaining that their neighbors had

left their lights on for longer than four hours the night before. In response, another household

would leave their lights on all night. This mismanagement of loads eventually led to system

failure after 4 years of service. After this difficult experience, no one else wanted the system, so

it was eventually moved to an experimental center. This problem recurred in Linjou county,

Tibet, where a 1.4 kW PV system was set up for rural electrification. This system was functional

for only 6 months, and failed for similar reasons. In this village, households damaged the system

by leaving their lights on 24 hours a day.

Some systems integrators have turned to individual meters to overcome problems with energy

wastage. However, meters for each household are expensive. Instead, Gansu PV Company

decided to focus on individual systems for the additional reason that individual systems are more

easily affordable and can be commercially purchased. They began with 100W systems, but

finding that these were still too expensive for the rural areas, they decreased the system size first

to 50 W, then to 36 W, and finally to 20 W and below8

. They found that the 20 W size is quite

suitable, because it is affordable and people will conserve energy if necessary. In addition, the

higher cost of larger systems requires subsidies, but the very small systems could be bought on a

purely commercial basis. Gansu PV Company typically sells 16W, 18W, and 20W systems.

 

8

 The 20 W and below size range is also found to be the most popular size range in Kenya, with one vendor

estimating 1998 sales to be over 20,000 systems.
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Although conventional wisdom and experience

from other areas indicates that 16-20W systems

may be too small or outgrown too quickly, Gansu

PV Company has not found this to be a serious

problem. The solar insolation is quite high,

ranging from 4 to 6 kWh/m2

/day in the province.

They have focused on designing high-efficiency

electronics and lamps. The systems are designed

to power one TV and two lights for up to three

cloudy days in a row. One user reported that

during the past winter, he was reliably powering

one TV, three lights and occasionally charging his

son’s battery! In addition, as the user’s demand increases and the user’s demand outgrows his

system size, Gansu PV Company provides a trade-up policy, described below.

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Gansu PV Company gives small payments to some end-users and local “technicians” to work

part time or on occasion for Gansu PV to provide technical service. The local technicians are

trained for 1-2 weeks by the company and have very basic technical skills. They fix systems,

help to sell systems, and log problems.

Through this continuous monitoring of system performance, Gansu PV Company has been able

to solve recurring technical problems. About three years ago, their main system failures were

due to the batteries, controllers and lamps. Through trial and error they have found good, local

batteries. They now estimate a typical battery lifetime of five years and lifetimes of up to eight

years under careful operation. Controllers are now manufactured by Gansu PV Company with

high quality elements that are bought directly from specific factories. Originally, the lamps,

including the energy saving lamps, suffered extremely short lifetimes of two weeks. They

discovered high-frequency transients in the waveform which caused these early failures and

refined the circuitry so that they are now able to use standard fluorescent lamps which are

available in most local town centers.

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Subsidies for capital equipment purchases are often used to make systems more affordable for

rural poor. However, Gansu PV Company’s experiences show that such capital subsidies may

not reach the target groups and may also lead to corruption. Implementing a subsidy program

adds an extra layer of administration and middlemen, who may take money from both ends of

the market chain. For example, the middleman might charge the user a fee for selling him a

subsidized system; and the middleman might charge the funding agency a fee for distributing and

marketing the systems. The subsidies themselves provide a financial cushion that allows the

middleman to undercut market prices and still make a healthy profit.

In addition, the subsidies often led to corruption. In one instance, the middleman switched out

the expensive imported equipment for cheaper, local components and passed them off as foreign

equipment. It is likely that the original imported equipment was sold off at a profit by the

middleman. Subsidized systems were often earmarked for politically powerful people. In one
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43

village, they found that the village leader owned three of the subsidized systems, despite the

project’s limitation of one system per household.

Finally, Gansu PV Company found that the use of subsidies distorts the playing field and hurts

local suppliers who are not part of the subsidy program and who cannot compete with the

subsidized systems.

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Many multilateral, international and non-governmental organizations are promoting credit

schemes to make the systems more affordable for users. However, Gansu PV Company found

that the people in their region lacked an understanding of credit. There is no law in China which

allows creditors to collect money which they have loaned. Because Gansu PV Company had no

legal right to collect money for systems which are bought on credit, their collection rate was

abysmal in the first year of their credit program. It may also be that rural villagers are so

accustomed to hand-outs from the government, that they assume that the solar home systems are

or should be free.

7UDGH0XS SURJUDP

As a way to deal with the affordability, finance and demand growth issues, Gansu PV Company

turned instead to a trade-up mechanism. In this way, households start with the smallest system

that they can afford. As they save up more money and as their energy demand grows, they can

trade in the smaller system for a larger system. This concept requires that the product quality be

high. As Gansu PV Company says, “you can cheat people once, but not three or four times.”

This is the third year of the trade-up program and a significant percentage of their customers

have engaged in trading their systems in for larger ones.

0DUNHWLQJ

Gansu PV Company believes that

advertising and word of mouth are

essential to their business. They advertise

on the radio, hand out flyers along the

roadsides, and use their part-time workers

to help spread the word. Gansu PV

Company believes that advertising is so

important to commercial dissemination

that they recommend that potential

international donors fund marketing

activities rather than direct equipment

subsidies9

.

 

9

 There are other examples of the power of marketing in renewables and energy efficiency. The Thai demand side

management (DSM) program has been quite successful also because of the extensive marketing. Much of the

$15.5m GEF loan to program is for marketing and EGAT has the largest nationwide TV advertising account, most

of which is for DSM. In Greece, a government-driven solar water heater program was started by several years of

capital equipment subsidies, but grew most rapidly when the government replaced the capital subsidies with

subsidized advertising on television during evening hours. Sales reportedly rose 50% per year during the two years

of this advertising campaign.
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44

Gansu PV Company’s success appears to be a function of their persistence, adaptation and

innovation. Adaptation to local conditions is essential, because even mechanisms, such as credit,

which are widely and successfully used around the world10, may not be applicable for all cultures

or regions. Gansu PV Company’s trade-up system demonstrates the need for developers and

suppliers to be flexible and innovative.

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One of the big successes in deployment of household renewable energy systems is the

dissemination of small wind turbines in China. The Chinese have a long history of using wind

energy, beginning with the use of windmills for pumping water 2000 years ago. By 1959, there

were 200,000 canvas windmills pumping water, mostly in north Jiangsu province. In the 1950's

the Chinese government began research on wind electricity generation and by the 1970's they

were able to begin a campaign to electrify rural areas with small-scale distributed renewable

sources, including wind and photovoltaics.

Figure 2. Cumulative number of installations of small-scale wind turbines (typically 50-300 W)

for rural electrification in Inner Mongolia and China.

Although the central government provided research and development of wind technology, they

played a relatively minor role in this success story of small-scale wind turbine dissemination.

Local governments in some rural, windy provinces - Xinjiang and Qinghai, for example - have

only been mildly successful in disseminating small-scale wind turbines. It is the local

government of Inner Mongolia that has had the most aggressive policy of wind power expansion

and this is reflected in the tremendous number of wind systems installed in this region. Figure 2

shows that over 80% of the small-scale turbines in China are located in Inner Mongolia.

 

10 The Grameen Bank has been one of most successful micro-lending institutions for the poor. Their housing loans

are most widely known but they also lend for micro-enterprise and small-scale renewable energy systems. Projects

by Solar Power & Light Company in Sri Lanka and by the Solar Electric Light Fund/Vietnam’s Women Union in

Vietnam are other examples of successful use of credit to make solar home systems affordable for rural people.

0

20000

40000

60000

80000

100000

120000

140000

160000

1984 1986 1988 1990 1992 1994 1996 1998

year

Cumulative number of wind 

turbines installed

Inner Mongolia

China
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Inner Mongolia is an autonomous region in northern China, bordering Mongolia. Inner Mongolia

has about 1/8 of the total area of China, but less than 2% of the total population. Most of the

land is grassland, and many of the rural people are herdsmen and farmers. Average per capita

annual incomes are about 2000 Yuan ($240), which is fairly rich for a rural, unelectrified

population in an underdeveloped province. This is 2-3 times higher than Gansu province, and

may account for the proliferation of small-scale energy systems. It is estimated that there remain

300,000 households in 1100 villages and 198 townships that currently lack electricity11.

3ROLF\ DQG 3ODQQHG 'HYHORSPHQW

In 1980, Inner Mongolia’s Science and Technology Commission made renewable energy

development and utilization a priority program. They emphasized local development and

implementation of this program with these guidelines:

• The primary objective of new energy development and utilization is to solve the energy

problems of remote areas, and the top priority is to develop small-scale wind turbines, PV cells,

and balance of system components for stand-alone applications.

• The basic principles of new energy R&D are “reliable to use, convenient to maintain, and

affordable to herders”.

• Small-scale products and energy use for daily life are the main focus, and the needs of

production and daily life should be integrated.

• Local people should be in charge, with the state providing appropriate support.

The local government integrated the research, production and outreach components of their

program into a single continuous system. In 1984, the New Energy Office was established to

manage the renewable energy work. This agency set policies for renewable energy development,

conducted near- and long-term planning for renewable energy, and coordinated activities in

research, production and dissemination.

In the 1990’s Inner Mongolia began collaborations with international partners to advance their

technologies, especially in hybrid and centralized systems. Utility-scale wind farms and other

renewable energy technologies also became more widespread during this time. The long-term

goals for the region are to disseminate a total of 150,000 small wind turbines, 150 kW of PV, and

150,000 m2

 of passive solar buildings by the year 2000. By 2010, electrification of remote areas

in the region is planned to exceed 50%12.

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The State government assisted wind power development by supporting R&D and preferential

loans for manufacturers under the Sixth, Seventh, and Eighth Five-Year Plans. The local Inner

Mongolian government has long viewed wind power as an exploitable energy source, boost to

the local economy and solution to rural electrification. They had a heavy hand in promoting the

technology, to the point of specifying production output and price of the wind turbines. For

example, to their specification, in 1985, Shangdu Livestock Machinery Works produced 4400

turbines, which were sold at an average of 518 Yuan/turbine, at a 23% profit.

 

11 John Byrne, Bo Shen and William Wallace, “The economics of sustainable energy for rural development: A

study of renewable energy in rural China,” Energy Policy, Vol 26, No. 1, pp. 45-54, 1998. 12 Lin Li, “The Development and Utilization of New Energy Sources in the Inner Mongolia Autonomous Region:

Review and Outlook”, Inner Mongolia Science, Technology and Economy, No. 4, pp 27-30, 1997.
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46

The Shangdu Livestock Machinery Works began cooperation with many research institutions

and universities in 1975 to develop wind electric generators. They acquired technology from the

SVIAB Company in Sweden in 1988 and have been improving the technology and simplifying

the structures over the years. Today they produce the largest number of wind turbines in China.

The small Chinese wind turbines have been designed to perform well at the low wind speeds

found at the typical hub height of less than 10 m. Figure 3 compares the power curves of the

Chinese turbines with those of similarly sized turbines from abroad, showing that the Chinese

turbines begin producing power near their rated power output at much lower wind speeds than

typical small turbines from the US and Germany.

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 5 10 15 20 25

wind speed [m/s]

power/rated power

fd 100

fd 2kw

fd 300

fd 200

Air 303

BWC 1.5

ger 5kw

Figure 3. Comparison of scaled power curves from small wind turbines manufactured in China,

US and Germany.

Since 1990, the German technical aid agency GTZ has sponsored a project in Inner Mongolia to

transfer technology of small-scale wind turbines and electronics for hybrid systems. They have

successfully transferred the know-how for production of their equipment to the joint venture Hua

De New Technology Company, who now replicates and sells the equipment. To go the next and

very challenging step of transferring a deeper understanding of the design such that the local

company could improve upon and modify the original design would require much more training

of and experience by the joint venture13.

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The systems used in Inner Mongolia, although widely disseminated, suffer from low winds

during the summer. The power of the wind increases as the cube of the wind speed, so that the

 

13 Hubert Klapheck, FGU Consulting, personal communication, 21 April 1998.
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47

power available in the high wind months of winter can be 3-4 times greater than that in the low

wind months of summer. Since the solar resource peaks during the summer, the addition of PV

provides a means for electricity production year-round.

The second major problem with wind-only systems is that they are typically used with

automotive lead-acid batteries. These batteries are designed for continuous charge, for low depth

of discharge and for providing a large amount of power over a very short period of time.

However, in use with wind electric chargers, the batteries are discontinuously charged and are

severely discharged over a long period of time. In this mode of use, the batteries only last 1-2

years, and thus comprise a significant expense. Rising battery costs further aggravate this

problem. In comparison, when used in solar chargers, these batteries typically have lifetimes of

5-6 years.

The Chinese herdsmen have already recognized the limitations of the wind-only systems and the

advantages of hybrid wind/PV systems and have begun adding photovoltaic panels to their wind

systems. The relatively high cost of PV is currently the greatest obstacle to their widespread use.

The local government has begun collaborations with the US, Germany and the UNDP to study

the design and application of hybrid systems in the region.

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The central and local governments have established an extensive network of rural and new

energy offices which disseminate information and provide technical training and service at the

county level. These offices have been instrumental in deployment of the small-scale renewable

energy technologies.

The Ministry of Agriculture established the management system of rural energy offices in 1979.

These rural energy offices now exist in 1800 of the 2200 rural counties in China. The original

programs of the early 1980’s focused on single technologies such as improved biomass

cookstoves, biogas digesters and small hydropower. In 1983, they began a pilot project for

integrated rural energy development in six counties. The success of the pilot led them to expand

it to twelve counties during 1986-90 and then into the “One hundred counties” program during

1991-95. These integrated rural energy development programs focused on the interdependence

of the energy and environmental sectors as well as social, economic and environmental

development14.

In addition to the central government’s rural energy offices, the local Inner Mongolian

government has set up new energy service stations in over 60 of their region’s 88 counties.

These provide information and subsidies specifically for renewable energy systems. Their

technical and training sites provide additional technical support.

6XEVLGLHV

In 1986, the Inner Mongolian government began offering a subsidy of 200 Yuan ($24) per

turbine (or PV panel) and 50 Yuan ($6) per battery for components manufactured in Inner

Mongolia. The process for obtaining the subsidy was quite simple: the herdsmen went to their

 

14 Deng Keyun, Gu Shuhua and Liu Wenqiang, “Rural energy development in China”, Energy for Sustainable

Development, Vol, 3, No. 3, September 1996.
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48

local new energy office and obtained a coupon which they brought to the Inner Mongolian

turbine manufacturer of their choice. This helped to build up the local industry. The local

government and utility each provided 5 million Yuan annually for these programs. Currently,

subsidies are about 100 Yuan per 100 W rated capacity for the wind turbine and they do not

apply for batteries. This program was completely driven by the local government until 1990,

when the central government began contributing about one-third of the wind power subsidies.

There has been little experience with financing of systems. While there is now a revolving credit

program underway, nearly all installations to date have been cash sales. The relative wealthiness

of the rural population and the relative inexpensiveness of the locally manufactured equipment

has made the systems affordable for the users. However, in order for the dissemination program

to reach less affluent segments of the population, financing may become an important component

of future programs.

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These programs have been successful in creating a domestic industry of wind turbine

manufacturers. Today, China produces more turbines than any other country through its 42 local

manufacturers. These are mostly 100 W units used in single households, although 300 W units

have now become very popular. Shangdu Livestock Machinery Works reports production growth

of about 58% per year to about 10,000 units in 199615. In 1996, total annual production in China

was estimated at 20,000 units. China also exports these turbines to various Asian countries

including Mongolia, Malaysia, Vietnam, Pakistan, Sri Lanka, and Japan. In addition to creating a

manufacturing industry, over 10,000 people were trained for construction, installation or

maintenance of turbines.

In 1993, it was estimated that of all wind turbines in

Inner Mongolia, 85% were in good condition and 78%

were in operation. This is remarkable in light of the

fact that these wind turbines have reported lifetimes of

10-12 years, and that parts of the turbines are often of

poor quality (especially the blades, which must be

replaced every 5-7 years). More recent anecdotal

evidence suggests that this is an overestimate and that

many turbines are now inoperational16. However, no

survey has been done to ascertain the performance of

these turbines.

By 1995, there were about 150,000 small turbines in

rural China, providing electricity for lighting, radios,

televisions and small appliances. Today,

approximately 140,000 small wind turbines (and about

10,000 PV systems) are located in Inner Mongolia, and

about half a million people receive electricity from

 

15 Yang Bing, Small Scale Wind Energy Systems, March 1997.

16 Personal communications from program managers at the Chinese Academy of Sciences, with the US DOE/China

collaboration and with the GTZ/China collaboration.
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49

these small wind or solar systems17. These small turbines contribute over 17 MW to installed

capacity.

The Chinese small wind story is one of excellent policy and planning, well-established

infrastructure, development of domestic industry, and a target population which could afford the

systems. Minimal subsidies were used to stimulate both the industry and sales, but it is likely that

the dissemination has been mostly to the wealthier households. However, the resulting

development of a domestic industry has been that low-cost turbines are now widely available and

come closer to the reach of the middle-class households.

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Various kinds of subsidies and various levels of subsidization have been used in Thailand and

China. In this section, we examine some of the end-user subsidies and the degree to which the

subsidies distort the markets.

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In Thailand, the traditional government-subsidized approach has resulted in renewable energy

programs which subsidize renewable energy technologies by 50-100%. In addition to the 100%

subsidies on PV BCS through the DEDP and PWD programs, there are 50% subsidies on PV

through a proposed PEA program and 30-40% subsidies on solar water heaters through a

National Energy Policy Office program.

The large market distortions may make it difficult to move to a market-based dissemination

program. The Ban Huay Ta villagers interest in moving to a higher level of electricity service

may be thwarted due to the fact that their current costs in the subsidized BCS are only 1% of the

costs of commercial SHS.

Another factor which may make the cost of a SHS less attractive in rural electrification is that the

distribution utilities’ rural electricity prices are cross-subsidized by urban electricity prices.

Because of the subsidies for rural users on both sides of the SHS market, completely commercial

dissemination of SHS faces large barriers.

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The international development world is fraught with the misuse of subsidies in the form of grants

and loans which distort the market. The more benign of these is the multilateral development

bank (MDB) loans, which sometimes compete with private investors by lending money for

projects which are easily financed in commercial markets18. The 6% interest rates offered by the

World Bank, for example, are far below commercial rates and thus far more attractive to

developers.

 

17 Long Zequiang, Small Scale Wind Energy Systems, December 1996.

Ma Shenghong, Hua De New Technology Company, personal communication, 31 May 1998.

18 Asian Wall Street Journal, “The World Bank is Edging Out Lenders in China”, by Craig Smith, p 1, June 11,

1998.
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In some cases the MDB’s are even at odds with each other. A recent Asian Development Bank

study of optimal financing for a 1.8 GW power plant in Shanghai recommended a bid invitation

to private investors. However, when Shanghai checked with the World Bank, which was willing

to finance the loan, the competitive bidding option became uncompetitive.

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Subsidies from bilateral donors may provide an even greater market distortion than the MDB’s in

that they subsidize the technologies from one country only, in a move to take over market share

from competing suppliers of other countries.

Recently, new bilateral subsidy programs for renewable energy technologies have been

proposed. These include the soft loans for utility-scale wind turbines in China as well as

subsidies for PV solar home systems (SHS) in several Asian countries.

Soft loans for wind turbines

DANIDA recently announced their most favorable soft loans to date for China: $150M over 3

years for wind turbines at zero interest over ten years. It is estimated that 90% of wind power

installations in China were funded through concessional finance. While the Chinese argue that

there is limited capital available in-country, the availability of concessional finance means that

the only development which occurs in China will be that which has access to concessional

finance. Other bilateral aid agencies have provided concessional loans in an effort to compete in

the subsidized loan market to promote their own countries’ technologies. Since not all

concessional terms are equal, those countries with the most favorable loan terms will be the ones

who will be able to sell turbines in China.

By making soft loans available, foreign governments have destroyed any hope of commercial

wind markets and privately financed wind development in China for the near term. In the 1995

Beijing International Conference on Wind Energy, one of the largest Danish wind turbine

manufacturers noted that the fledgling commercial market which had existed prior to the

concessional finance programs had vanished. As a result, no turbines had been sold on

commercial terms in China in 199419. It is generally agreed that when the current round of soft

loans run out, the Chinese will wait again for more of the same. The availability or even

possibility of subsidized loans has reduced the Chinese willingness to pay full cost for

commercial machines. Unfortunately, the Chinese do not have domestic production of large

turbines, so this means that wind power development will be stalled.

Subsidized solar home systems

The markets for SHS are rapidly expanding throughout the developing world, with new suppliers

and developers being established. In an effort to develop PV markets, the Dutch government has

proposed donor aid to subsidize their SHS in the Philippines, China and Sri Lanka. In addition

to distortion of local markets, there is concern that this aid may hurt local distributors and dealers

and, in the case of China, local PV manufacturers.

 

19 Hans Buus, “Large Scale Wind Power Plants in China,” Beijing International Conference on Wind Energy,

Beijing, 9-13 May 1995.
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In Sri Lanka, the Dutch government is offering 35% subsidies for their SHS to local distributors.

While this program may initially seem enticing, due to the large subsidies and numbers of

systems involved (about 30,000 are eventually planned), it may distort future markets by eroding

the willingness of later end-users to pay full price for systems after the subsidies end. In

practical terms, the local distributors have no choice but to join the program, if they want to

compete in what will be a subsidized and distorted market.

In the Philippines, local developers and systems integrators have been cultivating local

commercial markets for SHS for several years. Their largest project to date is about 1000

systems. The Dutch aid would subsidize 15,000 SHS to the Philippines government for rural

areas. There is great concern that the donor aid may harm the fledgling commercial markets and

create subsidy dependencies.

In China, the World Bank has been packaging a 200,000 SHS project for rural areas in five

remote provinces. If the proposed Dutch aid for SHS in one of these provinces is implemented,

then the World Bank will be forced to pull their project out of this province because they will not

be able to compete with the large proposed subsidies of the donor aid program20.

There are ways in which host countries can avoid these problems. Host governments can

channel all aid through their own rural electrification/renewable energy programs or agencies,

such as the MDB funding through the Indian Renewable Energy Development Agency. Or they

can carefully segment the population and target various aid programs based on geography or

affordability, such as Indonesia’s handling of German, Australian, and World Bank aid. Since

bilateral aid subsidies have proven to be so powerful and since governments have been so

aggressive about using them, it is imperative that both government recipients and donors alike be

educated about the need to create sustainable, commercial markets and the long-lasting havoc

that market distortions can wreak in the marketplace.

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Many Asian developing countries are interested in using small-scale renewable energy

technologies to provide basic electricity services for rural people. However, most governments

are not familiar with the latest methods in market-based dissemination that have resulted from

the lessons learned in government-driven dissemination. Many of the newest ideas of marketbased dissemination, such as rural energy service companies or elimination of end-user

subsidies, are only beginning to be discussed in Asia. Therefore, many governments still opt for

the traditional government-driven and government-subsidized approach.

In the industrialized countries, however, the current conventional wisdom is to move away from

traditional government-driven dissemination and to pursue a market-based approach. This is in

line with worldwide trends towards privatization of many government operations and

competition in sectors such as telecommunications and power. One of the reasons why the

development community has come to this conclusion is that government and international aid is

limited and only the private sector can source the levels of funding that will be necessary to

provide electricity services to the some 2 billion people still unserved. Perhaps a more important

 

20 Thomas Reindl, “Private Sector Initiatives to Commercialize Photovoltaics without subsidies”, Institutional

Cooperation for Solar Energy in the Mekong Riparian Countries, Hanoi, Vietnam, 11-16 May 1998.
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reason is that the private sector typically provides services more cost-effectively and more

efficiently than the government.

Today competitive, commercial markets are viewed as the most reliable and cost-effective

structures for sustainable dissemination of new technologies. Subsidies come and go as political

will changes. Government funding dries up during economic hard times. The challenge is to

create these competitive, commercial markets for renewable energy technologies in developing

countries.

However, it is hard to ignore the success of Thailand in its government-driven dissemination of

over 1000 PV BCS. For nearly a decade, Thailand has been able to provide electricity services

to a growing number of rural villagers at practically zero cost to the end-user. Can these

successes be applied elsewhere?

Thailand is a unique case in the developing world. It is a relatively rich country which has

graduated from many donor aid programs. A small fraction of their petrol tax is deposited into

the Energy Conservation (ENCON) Fund, which is then allocated towards energy efficiency and

renewable energy programs. Before the 1997 currency devaluation, the ENCON Fund totaled

$600M. The government is committed to energy efficiency and renewable energy; and

environmental protection and indigenous energy use are high priorities for the country. In

addition, approximately 98-99% of the population is grid-connected. Thailand therefore finds

itself in the unique position of being able to afford and having the political will to completely

subsidize electricity services for their unelectrified population.

However, the economic and currency crisis of 1997 has had huge repercussions on Thailand’s

programs. DEDP has completely halted installations of PV BCS and only limited funding is

available to ensure that existing stations remain operational. PWD’s installations of PV BCS and

water pumping stations have declined substantially. Some of the ENCON Fund was diverted

towards non-energy government needs and at one point during the economic crisis, the

government was seriously considering usurping the Fund to make up for budget shortfalls during

the economic crisis.

With current funding limitations and increased electricity demand in many villages which would

require much more money than is currently spent per villager, Thailand may now need to move

to a more market-based approach in order to meet the needs of the rural populations.

The commercialization and government-enabled market-based approaches of China may be

better suited as a model for other developing countries. Indeed, China is similar to much of

developing world in that a large percentage of their population (about 10% or some 100 million

people) lacks electricity access. Like most other developing countries, China doesn’t have

enough money to completely subsidize electricity services for all of their unelectrified

population.

However, China is unique in that it has a relatively mature small-scale renewable energy

industry. This, combined with a huge demand for decentralized energy systems, has conspired to

drive prices down. China is one of the few developing countries that manufacture PV systems
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53

from cells to modules to solar home systems; they have mature wind turbine, micro-hydro and

solar water heater industries with an extensive local manufacturing base. The high demand and

resulting large production scales means that prices are among the cheapest in the world, per kW

or per kWh. Their technologies have a reputation for inferior quality, however, and thus China is

not able to export their products to many parts of Asia, notably Southeast Asia.

New projects in China may help to accelerate current efforts. The World Bank is starting work

in China that may accelerate the development of SHS use. The United Nations Development

Program is starting a project to transform the renewable energy market into a demand-driven

market, to attract investors by offering business opportunities, and to coordinate the local

industry by creating renewable energy industry associations.

&RQFOXVLRQV

In conclusion, both Thailand and China have been successful in disseminating large numbers of

small-scale renewable energy technologies to provide electricity in rural areas. They have

utilized very different strategies in approaching the problem: the Thai government has directly

disseminated the technologies in fully subsidized programs and the Chinese government has

provided infrastructural, technical, and financial support so that local industries could

disseminate the technologies. Despite Thailand’s successes, the recent economic crisis has had

huge repercussions on their programs, revealing their current dissemination strategy to be

unsustainable. New market-based approaches with less dependence upon government support

may be useful in filling the gap caused by shrinking government programs. It is hoped that the

near-commercial renewable energy markets in China are independent enough of government

budgets to suffer fewer repercussions than those in Thailand, if the Asian economic crisis should

spread to China. The World Bank, UNDP and GEF are also implementing projects to support

and expand market development in China.

In addition to the sustainability issues, it is not recommended that other developing countries

adopt Thailand’s model because the conditions which made Thailand’s strategy successful –

relatively large government funds and relatively small unelectrified population – are not found in

most developing countries. Few developing countries are rich enough to be able to subsidize

electrification for all of their remote, rural areas.

Finally, the development of sustainable markets for dissemination is generally hindered by enduser subsidies which tend to distort markets and often result in a boom-and-bust dissemination

pattern. The long-lasting effects of these distortions are often underestimated by the

governments and institutions who provide the subsidies. Some of the most flagrant abuses of

subsidies have been the recent efforts of bilateral aid agencies to expand export markets for their

countries under the guise of development aid. Education for both donors and recipients alike

about the long-term effects of these subsidies is essential if governments are to craft policy for

sustainable dissemination of renewable energy technologies.
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 1

PV Technology For Global Village Po

Village Power ‘98

Off-Grid PV Systems Workshop

World Bank, Washington, D.C.

October 5, 1998

ENTECH, Inc.

1077 Chisolm Trail

Keller, TX 76248 USA

Contact: Dr. Robert R. Walters

Tel: 817-379-0100 Fax: 817-379-0300

E-Mail: walters@entechsolar.com

Internet: http://www.entechsolar.com
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 2

ENTECH’S Terrestrial Photovoltaic 

 For Global Vill

ã SunLine

z Solar PV System That Produces 800 Watts Of Power 

And/Or Remote Applications (DC or AC)

ã SolarRow

z Solar Photovoltaic System That Uses Sunlight To Pro

Power For Multi-kW To Multi- MW Users (DC or AC), FVillages to Utilities

ã Licenses

z ENTECH Is Developing Local Industry and Jobs by L

Companies In-Country to Manufacture and Sell TheseProducts To Provide Local Village Power, As Well As Independent and Sustainable Power Applications
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 3

SunLine PV 

ã Power Output: 800 Watts (DC)ã Two 4th-Generation

Concentrator PV Modules

ã Solar-Charged 12 VDC Battery

Powers the Micro-processorController and the Sun-TrackingDrives for Both Tilt and RollAxes

ã All-Galvanized Structure Can Be

Fabricated In-Country And FullyAssembled in Local Factory forEasy Field Installation
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 4

SolarRow PV Syste

ã Four SolarRows at CSW* Solar Park, Fort Dav

ã Power Output: 25 kW Per SolarRow, 100 kW 

* CSW - Central and South West Company - Major Electrical Utility In USA
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 5

ENTECH’s Technology Licensing Program 

ã License Agreement Gives In-Country Company (Lice

To Manufacture & Sell SunLine & SolarRow Products 

Power And Other Sustainable Power Markets

ã License Program:

z ENTECH

Ñ Receives Up Front Fee To Cover Technology Transfer & TrÑ Ships Fresnel Lenses, Solar Cell Assemblies & Other Spec

Components To Licensee For Life Of Agreement

Ñ Makes Available To Licensee On-Going Tech. Support & C

z Licensee

Ñ Builds Aluminum & Steel Components In-CountryÑ Assembles Modules, Structures, Controls, Drives & InverteÑ Sells, Installs, Maintains, And Operates Systems As Desire
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 6

 ENTECH PV Product Ad

ã Can Achieve Lower Product Cost Than Competition 

z Moderate Production Volumez Minimal Technical Risks

ã Ideal For International Licensing

z Creates In-Country Jobs & Local Economic Developme

Through Manufacturing, Assembly, Installation, OperaMaintenance

z Creates U.S. Jobs - Manufacture Specialty Componentz Allows For Rapid Market Expansion

ã Provides Predictable Energy Costs For 30 Years Or M
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 7

ENTECH PV Product Advantages 

ã Long Term Performance & Reliability Verified By Nu

Third-Parties

ã Technology Protected Internationally Through Key ã ENTECH’s Solar Power Systems Can Provide:

z Electricity, Hot Water And/Or Distilled Water For Villa

Homes, Hospitals, Schools, Apartments, And Busine

z Electricity For Remote Water Pumpingz Electricity And/Or Process Heat For Local Industriesz Electricity For On-Grid or Off-Grid, DC or AC Applicat

ã Can Rapidly Expand Production To 100’s of Megaw

Year
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 8

 Experience

 High-Performance & Reliability
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 9

ENTECH E

ã Technical and Management Team Together Since 1977ã Four Generations of Terrestrial Concentrator PV Technoloã More than $30 Million of R&D Investment to Dateã Prior Successful Contracts:

z Government - U.S. Dept. of Energy, Sandia National Laboratories

Renewable Energy Laboratory, Jet Propulsion Laboratory, NASA

z Utilities - Bechtel/Pacific Gas & Electric Company, Texas Utilities 

Central and South West Company, Northern States Power, City oMunicipal Electric Department, Tennessee Valley Authority

z Companies - 3M and Overseas Customers

ã ENTECH Has Received Over 11 Patents On This Solar Tecã Recognized as the Leader in Concentrating Photovoltaic

Technology for Terrestrial and Space Applications
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 10

High Performance & 

ENTECH Is the Long-Term Leader In Independent 

U.S. Manufacturers’ Photovoltaic Systems At PVU

* PVUSA - PhotoVoltaic for Utility-Scale Applications Program (Davis, CA USA)

02468

101214

Calendar Year

 Sunlight To Electricity

Conversion Efficiency (%) ENTECH S

Siemens Amonix Solarex Solar Cells AstroPoweSovonics/MUPG Sovonics ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 11

High Performance & 

Predictable PV Syst

405060708090

100110

500 600 700 800 900 1000

Direct Irradiance (W/sq.m.)

System AC Power (kW)Ambient = 0 C, W

Ambient = 20 C, WAmbient = 40 C, W

Official PVU

Measured P

Rating Is 83 

W/square m

Irradiance & 

Ambient-CS

SolarRow P

In Fort Dav

Curves Are Predicted Based on Sandia Module Test 

lations with 95% Wiring/Mismatch Loss and 94% Inv

4 SolarR
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 12

High-Performance & 

SunLine PV System In M

ã Customer: Northern St

 Company

ã Location: 3M Center, Sã Operational Since July ã Survived 3 Minnesota W

z Ice Stormsz Snowstormsz Minus 35C Ambientz Many Meters of Total 

ã Survived Severe Wind 

z >30 meters/second Sz Over 250 Mature Tree

at 3M Center

ã Lenses Never Cleanedã Negligible Degradationã Automatic, Unattended 
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 13

PV Technology Designed For

In-Country Jobs & Industry
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 14

4th-Generation Concentrator PV 

ã Fresnel Lens:

z ENTECH Supplied/3MProduced Acrylic Lens

ã Marine Aluminum Housing

z Licensee Supplied

ã Photovoltaic Receiver:

z ENTECH - PV Cell Assemblies

(U.S. Patent 4,711,972)

z Licensee - Receiver Assembly

(US Patent 5,498,297)

z Licensee - Extruded

Aluminum Heat Sink

One-Foot C
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 15

Photovoltaic Receiver Ass

Assembled In-Country Under License 

• 37 Cell A

• 1 Extrud• Dielectri• 430-480 

U.S. Patent 5,498,297 for New, Streamline

Tape & Film Receiver Assembly Approac

Heat Sin

4X Large

Aperture 

 Result: C

As Cool A

Flat Plate 
Copyright - October 5, 1998 - ENTECH, Inc. - Slide 16

SolarRow 

ã SolarRow Co

z 14 Concrez 13 Galvanz One Galva

Together 

z 72 ENTECz 12 VDC Ro

Controls, 

z DC Comb

Fused Disand Block

z Two Wires 

at 400 VDC Inverter

Aluminum & Steel For SunLine & SolarRow Fabricated 

Along With Other Components, In-Country Under Lice

* CSW Solar Park, Fort Davis, Texas USA
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 1

Solar Photovoltaic in Rural Electrification:

Market Assessment Survey in Bangladesh

by

Hasna J. Khan and Asma J. Huque

Prokaushali Sangsad Ltd. Dhaka, Bangladesh

(Energy Research Center)

Village Power ‘98, Washington DC

1. BACKGROUND AND CONTEXT:

Of the 12.7 million rural households in rural Bangladesh, only about 2 million (approximately 15%)

currently enjoy electrification from the national power grid. The task of providing electricity to the

remaining 10 million rural households is a large one. The task is made more challenging by

constraints such as the lack of an extensive transmission network throughout the country, the limited

generating capacity to serve additional rural markets, and the scarcity of capital for investments in

generation, transmission, and distribution. Economic extension of rural electrification is further

constrained by the generally small loads and greater dispersion of rural customers, making it difficult

to justify the costs of distribution networks. Three individual government owned enterprises, Rural

Electrification Board (REB), Bangladesh Power Development Board (BPDB), and Dhaka Electric

Supply Authority (DESA) are presently engaged in providing electricity service to the rural

population. More than 70% of the rural connections are served through Palli Biddut Samities (PBS)s

operating under the regulatory guidance of the REB. Currently there are 54 PBSs in commercial

operation, which are user owned co-operatives, offering electrification services to households, small

commercial enterprises, rural industries and irrigation needs in diverse parts of the country.

Bangladesh has joined its Asian neighbors as well as other countries throughout the world in

considering a broader array of options for providing the benefits of electrification to rural 

populations. Alternative options to the conventional grid based electrification, such as low cost 

isolated grid systems, solar, wind and micro hydro are under consideration for serving remote villages

and other clusters of customers. Another strong contender, particularly for disbursed consumers and

clusters with combined loads too small to justify grid systems is the use of solar photovoltaic (PV)

panels for electrification of individual homes or buildings. These are commonly called solar home

systems (SHS). Thus, grid supported conventional methods of power generation may be

complemented by utilizing SHS for providing electrification services to these sparsely distributed

unelectrified rural households. Such systems can offer basic electricity services of lighting and

operation of small appliances such as TV, radio, or fans. The convenience, safety and high quality

service provided by SHSs make them generally more desirable than traditional rural energy usages

such as kerosene and externally charged automotive batteries. However, a typical SHS is not

economically viable for household appliances consuming large quantities of electricity, that is

generally available from the grid.

Information on solar home systems is not yet widespread in rural Bangladesh. However, in a recent

effort of REB, 700 households within an island of 29 square km, have already been electrified by

SHSs in an ongoing pilot program with support from the French government. Narsingdi PBS is in

charge of operation and maintenance of this project. Suitability of SHSs for rural electrification in the
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 2

socio-economic context of this region has already been demonstrated in this project. Survey 1 of 166

users show that 52.4 percent of the total users are either satisfied or very satisfied with the use of

SHSs. The remaining 47.6 percent of the users are not particularly satisfied or totally dissatisfied with

the services. More than 30% percent of the users of battery systems with external charging using a

central PV station have expressed their dissatisfaction, which originates from transport of batteries,

and insufficient daily charging for desired usage. This pilot project provides a platform for bench

marking the solar PV service requirements in rural Bangladesh through the existing rural

electrification service delivery mode of the PBSs. 

2. SURVEY OBJECTIVE AND METHODOLOGY:

The survey performed is an initial investigation2

 towards determining the potential market for SHSs

in Bangladesh in view of the growing demand for rural electrification. The survey was limited to 701

samples covering three Thanas (administrative areas) within PBS territories, and one Thana outside

the operating area of any PBS. Objective of the survey was to determine the potential for SHSs to

serve rural households of Bangladesh which may not be accessible to grid electrification in the near

future. The survey focussed on obtaining following information relevant to this determination:

a. Current energy usage and expenditure for lighting and battery charging

b. Desired service level for electrification

c. Attitude of the households towards solar PV electrification

d. Preferred mode of service delivery

The survey focussed on middle to high income households. The relationship of the survey categories

in relation to the national income distribution of unelectrified rural households are shown in Fig 1.

As seen in the figure the survey population is nearly uniformly distributed at above 10% for

 1

Survey of Solar PV Applications in Rural Electrification: Narshingdi Solar PV Project,

 World Bank Survey by PSL, June 1998

2

Market Assessment Survey of Solar PV Application in Bangladesh, World Bank Survey by PSL, July 1998

Figure 1 Household Income - National Vs Survey sample

1

10

100

Monthly Income in thousand Taka

% of households

National households

Survey sample
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 3

all income groups above 2000 Taka per month. Small commercial enterprises, who could also be

part of a potential market for solar PV were also included in the survey. The information gathered

on the above characteristics from the survey was combined with that from the Household Expenditure

Survey (HES)3 to characterize the households that are likely to adopt SHSs and to predict the

potential market for each administrative division in the country. Additionally, this information will

be useful in selecting PBSs that will be targeted for the initial marketing of SHSs.

Three different payment schemes for solar home systems was offered in the survey:

(A) Cash purchase through a single payment

(B) Cash purchase through payment in monthly installments

© Monthly payment with a down payment for electrification services to Energy Service Company (ESCO)4

Customer’s monthly payments to the ESCO cover amortized capital costs, installation, operation,

maintenance, component replacement costs, and other service fees. This monthly fee is dependent

upon the financial assumptions used, including the on-lending terms of long term loans typically

obtainable for rural electrification in Bangladesh. Description of SHS’s capacity, and service levels

 as used for the survey are indicated in Table 1a.

Table 1a. Estimated SHS Capacity, Costs, and Service Levels

Module

Capacity

Battery

Capacity

Service Level for Solar PV

Small Solar

Home System

(SHSS)

35 Wp 70 Ah 35Wp system operating 3 lights of 10W

each

Large Solar

Home System

(SHSL)

75 Wp 100 Ah 75Wp system operating 5 lights of 10W

each OR operating 3 lights of 10W with

1 B/W Television

 3

 HES:Household Expenditure Survey 1995-96 , Bangladesh Bureau of Statistics, Govt.of Bangladesh

4

(ESCO):Energy Service Company Best Practices in Solar PV Applications, 1996, ASTAE, World Bank Report
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 4

Three different payment options for Solar PV electrification used in the survey are given in Table 1b.

Table 1b Payment Options for Solar PV Electrification Service

Scheme A. Cash Purchase of SHS:

SHS- Small 22,600 Taka

SHS- Large 40,700 Taka

Solar Lantern 2,500 Taka

Scheme B. Purchase of SHS with Credit:

System Type Option I Option II

Deposit Monthly Payment Deposit Monthly Payment

SHS- Small 10,000 325 4,000 500

SHS- Large 10,000 850 4,000 1,000

 Scheme C. Payment for Service with SHS Only:

System Type Option I Option II Less than Offered

Connection Monthly fee Monthly fee

SHS- Small 1,000 200 160

SHS- Large 4,000 350 300

Battery

Charging

700 150 110

Values suitable to

the

respondent.

1$ = 46.5 Taka
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 5

3. RESULTS

3.1 The Potential Solar Home System Market in Bangladesh

The survey indicates that a significant market for SHSs exist in Bangladesh. The report provides

market estimates based on administrative districts and household income categories. According to

the data obtained from HES, rural households typically do not have sufficient income for direct cash

purchase of a solar home system. However, use of credit or other forms of extended payment can

expand the potential market significantly. The lowest monthly costs are obtained when the SHSs are

owned by an ESCO and the customer only pays for the service from the system.

Ability to pay for solar home systems has been estimated by two different methods, which yield

market predictions as follows:

• In most developing countries, households typically spend no more than 5% of their income

on lighting and use of small appliances. By this measure, about 4.8 million rural Bangladeshi

households could pay for a solar home system as shown in the “Potential SHS Market” of

Tables 2 and 3. This accounts for nearly 45% of all unelectrified rural households.

• A more conservative market estimate “Existing SHS market” was obtained through the

survey conducted for this study, based upon the current expenditure level of the households.

Ability to pay for the services is measured by the current expenditure for lighting and battery

charging, most of which is to be replaced by a SHS. This market, which is approximately

470,000 households, is shown on Tables 2 and 3 according to division and income category

differentiation respectively. Figure 2 shows the relative distribution of the projected existing

market within the administrative divisions.
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 6
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 7

Table 2. Projection of Solar PV Market in Bangladesh by Administrative District

Potential SHS Market

(Liberal Market)

Existing SHS Market

Division (Conservative Market)

 Rural Households in BangladeshTotal

unelectrified

Households SHSS (1) SHSL (2) SHSS (3) SHSL (4)

Barisal 888,240 778,072 361,803 52,131 29,469 10,768

Chittagong 2,416,469 1,848,455 1,059,165 177,452 92,134 31,708

Dhaka 3,802,678 3,274,445 1,293,406 121,154 99,045 34,942

Khulna 1,348,908 1,096,733 470,498 44,966 35,268 12,512

Rajshahi 3,436,323 3,018,767 821,105 81,507 64,208 25,300

Sylhet 861,797 717,057 261,009 63,101 24,926 8,081

Total 12,754,415 10,733,529 4,266,986 540,311 345,050 123,311

 Table 3. Projection of Solar PV Market in Bangladesh by Income Group

Potential SHS Market

(Liberal Market)

Existing SHS Market

Division (Conservative Market)

 Rural Households in BangladeshTotal unelectrified Households SHSS (1) SHSL (2) SHSS (3) SHSL (4)

below 2000 6,606,787 5,926,232

2000-3999 3,992,132 3,364,026 3,364,026 217,034 108,517

4000-5999 1,237,178 902,960 902,960 50,633 - 

6000-7999 408,141 251,133 251,133 27,563 3,063

8000-9999 178,562 105,513 105,513 9,848 - 

10000-14999 204,071 114,225 114,225 20,561 3,427

15000-19999 38,263 30,915 30,915 7,134 2,378

20000 & More 89,281 38,525 38,525 12,277 5,927

Total 12,754,415 10,733,529 4,266,986 540,311 345,050 123,311

1) monthly income Tk.2,000-5,999

2) monthly income above Tk.6,000

3) currently spending Tk.160-300 for kerosene and battery charging

4) currently spending more than Tk.300 for kerosene and battery charging
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 8

3.2 Current Energy Usage Pattern:

The survey results show that 98% of the households use kerosene lanterns or “huricane” lanterns for

children's studying, and 69% use them for an average of 5 hours per night. More than 90% of the

respondents feel the most valuable impact of solar PV electrification will be in providing better

lighting for studying. Usage of batteries for watching television is also widespread among the high

income rural households. These households will benefit from SHSs by having an improved quality

of environment and removal of inconvenience caused by transportation of the batteries to the

charging stations.

In the survey households, current spending for lighting and battery charging indicate that 39.34%,

18.67%, 4.17% of the respondents spend above 125, 160 and 300 Taka per month respectively.

Percentage of households spending more than 160 or 300 Taka per month, increases

monotonically with income above 8000 Taka, as shown in Figure 3.

3.3 Willingness to Pay for Type of SHS

The survey covered 606 households and 95 commercial enterprises in three different districts (Natore,

Gopalgonj and Kishoregonj). 80.5% of the surveyed holdings have shown an interest in obtaining any

Figure 3. Current Expenditure on Kerosene for Lighting and 

Battery Charging

-

20

40

60

80

2 -

3.99

4 -

5.99

6 -

7.99

8 -

9.99 

10 -

14.99

15 -

19.99

20 +

Income in Thousand Taka

% of households

>T k.125

>T k.160

>T k.300
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 9

SHSs. In general, the higher income groups show willingness to pay for the large solar home system

(SHSL) while lower income groups are willing to pay for small solar home system (SHSS) as shown

in Figure 4. The survey did not reveal wide regional variations in the preference for SHS. One

striking exception, however, was the survey in the riverain island of Kishoregonj district. Here, 100%

of the respondents expressed willingness to obtain service from SHSs through monthly billing. The

agricultural and fishing industry in this area has created a somewhat higher level of wealth than in the

average Bangladeshi village. However, the annual floods all but preclude extension of grid service.

The high willingness and ability to pay for electricity services, and the lack of a competitive alternative

combine to create an excellent market for SHSs. Similar areas throughout the country may offer the

best near-term market for solar home systems. 

Willingness expressed in the survey towards battery usage with central PV battery charging is low.

Only 3.3% of the survey respondents are interested in receiving their electrification services through

a solar PV battery charging station, although 15% of the households surveyed are currently watching

television through battery charging. This signifies the difficulties people face with remote charging.

Figure 4. Income Vs. Willingness to Pay for Solar PV

0

10

20

30

40

50

60

70

2 - 2.493 - 3.995 - 5.99

7 -7.999 -9.99

12.5 -

14.99

17.5 -

19.99

Income in Thousand Taka

% of Respondents

 small

system

Large

system

B at.

Charging
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 10

In addition to monthly income, interest in SHS is found to be a strong function of the assets owned

by the households. Figure 5 shows direct correlation between willingness of the respondents to pay

for SHS and their household assets. Considering the results obtained on willingness to pay for

electrification, and the variation of income and asset among the potential users, it is recommended

that the SHS be sized according to the desire of the users, ie options for service levels such as SHSS

and SHSL should be made available.

3.4 Preferred Mode of Payment

The surveyed households and commercial units showed a strong preference for obtaining SHSs based

on monthly payment as opposed to direct purchase either outright or on a credit payment plan.

Nearly 68% of the respondents showed preference for service with monthly billing (similar to ESCO

method) at rates shown in Table 1, while 12% opted to pay in cash or credit. In an ESCO system the

PV installation remains the property of the ESCO, and the lighting services inclusive of replacement

of major components are provided for a monthly fee. Service for wiring and procurement of

consumable items like the lamps are typically purchased by the user directly.

3.5 Preferred Mode of Service Delivery:

With respect to choice of service providers, 61% prefer to receive service from the existing PBSs

in the area operating as an ESCO. The next preferred service delivery organization (18% of

respondents) is local co-operatives.

If the ESCO service is to be provided by a private dealer or enterprise using financing arrangements

available commercially (including charges for dealer financing), a higher rate of monthly payments

beyond the purchasing capacity of the households would be required. Purchase of SHSs through cash

or credit is not a preferred mechanism of electrification to nearly 88% of the households.

3.6 Preference Within the Buffer Zone:

Figure 5. Household Assest vs. Willingness to Pay for SHS

0

5

10

15

20

25

30

35

40

<100 100-

199

200-

299

300-

399

400-

499

500-

599

600-

999

>1,000

Household Assets in Thousand Taka

% of Households

SHSS

SHSL
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 11

The zone within a range of 1 km from an existing distribution line is identified as the "buffer" zone.

 The households within this zone are close enough to distribution networks but are unable to obtain

a service due to the high cost or delayed request of securing a connection. The survey shows that

a favorable interest exists for SHSs in such buffer zones. 67% of the 274 respondents in the buffer

zone expressed willing to obtain SHSs as shown in Table 4. Nearly 30% of these households are

currently spending more than 160 Taka per month on lighting and battery charging for watching

television. On the other hand, 85% of the 374 households outside the buffer zone have shown interest

in SHSs. 44% of these respondents are currently spending more than 160 Taka per month, and more

than 32% is using batteries for watching television.

Table 4 Willingness And Ability to Pay for SHS:

 Households in Buffer vs. Non-buffer Zone

Willingness to

Pay

Ability to Pay

Type of Current Monthly Spending More than

Zone

 Households Willing to Pay for

SHS 125 Taka 160 Taka 300 Taka Using TV

Buffer

Zone

(274)

67% 48% 29.5% 6% 26%

Non Buffer

Zone (332)

85% 75% 44% 8% 32%

3.7 Preference of Commercial Enterprises:

Owners of shops in rural markets have significant interest in using small solar systems (SHSS) for

lighting, in order to facilitate their business operations. Outside the buffer zone, 90% of the

commercial respondents are willing to obtain SHSS while only 8% are willing to pay for the large

solar system. Within buffer zones, 60% of the commercial respondents are willing to obtain SHSS

while 13% are willing to pay for SHSL. 10% of the commercial respondents within the buffer zone

are currently spending more than 300 Taka per month on lighting, which is equivalent to the monthly

payment of the SHSL. However, the SHSS is the optimum size for the rural shops of Bangladesh.

It is interesting to note that 20% of the owners of commercial enterprises outside the buffer zone, are

using batteries for watching television in their homes.

3.8 Socio Economic Background of the Survey Respondents:

This survey has focused on the middle and higher income groups of the rural population in the

selected areas. This was done to ensure that the survey adequately characterized these income groups,

which will comprise the near-term market for SHS5

. In comparison to the national average monthly

income of 3,658 Taka per month2

, the survey households earn 13,062. The main occupation of 65%

of the survey population is agriculture and 45% of the total respondents are owners of large farms.

 Preference for SHSL have been expressed by 55% and 45% of the owners of large and medium size

 5 The survey scope, limited by budget constraints to 700 households, would not have adequately characterized these groups

if a completely random household sample had been used because the absolute number of each of these income groups is relatively

small.
 Solar Photovoltaic in Rural Electrification: Market Assessment Survey in Bangladesh by Prokaushali Sangsad Ltd. 12

farms respectively. The SHSS is preferred by 50% of the small and marginal size farm owners . The

roof material of 96% of the households is tin or tile, reflecting semi permanent structures. It is

noteworthy that 58% of the surveyed households have a single earner in the family, 44% of whom

showed preference for the SHSS. 50% of the households with more than two earning members are

willing to pay for the SHSL. National average for the number of family members per household is

5.26, while the average number of earners is 1.48 according to the HES2.

4. CONCLUSIONS:

• The present study on market assessment provides information on the rural consumers and

their requirements in the context of solar electrification. A market size of approximately 0.5

million households is envisioned for solar electrification, which has the potential of extending

to 4 million in the future. National and regional plan for implementation of large scale

program for SHS in rural electrification should now be developed using predetermined

criteria for qualification of solar PV programs. This plan should be consulted in association

with the conventional master plan in place with REB for expansion of rural electrification,

considering 61% of the respondents have opted for service from the existing PBSs. 

• The survey shows that solar battery charging stations are not a suitable option for

electrification in Bangladesh and should therefore be avoided in future implementation of 

solar PV programs.

• Appropriate measures should be taken for local certification and quality control of hardware.

Use of trained distributors and maintenance contractors are recommended for sustainablity

of the systems.

• Large scale demonstration of SHS in different geographic regions should be initiate to create

awareness for SHS.

• Considering the results obtained on willingness to pay for different levels of service, and the

variation of income and assets of the potential users, it is recommended that the SHS be

sized according to the desire of the users, ie, options for service levels should be made

available.

• Quality of service must be ensured from the beginning of any future SHS program through

standardized systems and effective implementation of regulatory rules.