2 nd International Scientific Conference on “Energy and Climate Change”
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Transcript of 2 nd International Scientific Conference on “Energy and Climate Change”
2nd International Scientific Conference on “Energy and Climate Change”
Organised by Energy Policy and Development Centre (KEPA)
Athens, 8-9 October 2009
Portable Battery Lanterns : Paying for the service, not the hardwareBy Andy Schroeter, Director, Sunlabob Renewable Energy Ltd
Rural Electrification in Developing Countries
Current Situation:• Worldwide 1.6 billion people do not have access to electricity• Four out of five people without access to electricity live in rural areas of
the developing world, mainly in South Asia and Sub-Saharan Africa
Rural
populations
have to rely
on home-made
kerosene lamps!
World B
ank, 2001
Percentage of the population with access in 2000: 3 - 33% 33 – 66% <66%
Background (1)
Lao PDR – Country Data
• Population: 5.6 million (2005); several sparsely populated remote regions; 50% of population under 20 years old
• Geographical situation: 236,800 km2, bordered by China, Vietnam, Cambodia, Thailand, Myanmar; landlocked; mountainous
• Political regime: People’s Democratic Republic, government began decentralizing control and encouraging private enterprise in 1986
• GDP real growth rate: 7.5% (2008 est.)
• Environment - current issues: unexploded ordnance; deforestation; soil erosion; limited access to potable water
Background (2)
Energy situation in the Lao PDR
• Electrification rate (2005) = 58% (50% national grid + 8% isolated mini-hydropower plants / solar PV systems / generators / car batteries)
• highest = 96% in Vientiane Capital
• lowest = 9% is in the province of Phongsaly
• Total installed power generation capacity = 673 MW (99.8% hydropower + 0.2% diesel generators and solar photovoltaic systems)
• Large exports and imports of power to and from the neighbouring countries
• No national transmission line many towns receive electricity from neighbouring countries (Thailand, Vietnam, China)
What is Sunlabob?
Private Energy Provider for off-grid areas
• Renting out SHS for fixed monthly tariffs
• Selling KWh in villages with Village Hybrid Grids
• Selling light per hour with portable battery lamps
• Selling drinking water, purified by solar power
Solar Lanterns
“Recharging Fees for Lanterns can buy Hours of Solar Light – and replace kerosene”
Solar Lantern Rental System (SLRS)
Operation:• Small entrepreneur in village rents solar array and
charges solar lanterns for a cost covering fee• Sustainability through commercial viability
Benefits:• Reliable and cost-saving alternative to kerosene lamps:
improved health (smoke reduction), cheaper than kerosene, saving fossil fuels, brighter lighting, safety
• Central charging with guaranteed operating hours• Automated data collection allows for carbon
accountability and entering the carbon markets
Technology: Brief Description
Charging Station• System control unit• solar photovoltaic modules, in series (300 Wp)• Battery charging unit (STECA PL2085)• Management software for data handling
Lantern Units• 4W compact fluorescent lamp (cold cathode) • Sealed AGM-type lead-acid battery (12V, 7.5Ah)• Microprocessor for data collection• Stable housing
Operational Rental Scheme
installation & servicing
cost covering rent empty lamps
recharged lamps
HouseholdsCentral charging station (Village Entrepreneur)
Involvement of Partners and Financial Transactions (Laos)
Exchange Cycle with recharging fee
Village Technician
Investments
ReturnsVillage Energy Committee
owns
rents
Charging station in the villageowns
rents
Lamps in the village
Sunlabob
Village Energy Fund
re-invests
Investment Fund
loans
Private Investors
grants
Public Donors
Trust Fund
PROOF OF CONCEPT
Exchange Cycle with recharging fee
Village Technician
Investments
ReturnsVillage Energy Committee
owns
rents
Charging station in the villageowns
rents
Lamps in the village
Country Partner
Village Energy Fund
re-invests
Investment Fund
loans
Private Investors
grants
Public Donors
Trust Fund
Involvement of Partners and Financial Transactions (other countries)
Sunlabob
sells charging stations
sells lamps
facilitates PPP model
sells lamps
Exchange Cycle with recharging fee
Village Technician
Investments
Returns
purchase lease
Charging station in the village
Country Partner
Country Partner owns
rents
Lamps in the village
Investment Fund
loans
grants
Trust Fund
Involvement of Partners and Financial Transactions (Afghanistan)
provide funds for lamps
rents
Public DonorsPublic Donors
Private InvestorsPrivate
Investors
loan
Capacity building
Micro financing ‘rotating fund’
Micro financing ‘rotating fund’
Impacts (1)
MDG 1: Eradicate extreme poverty and hunger
• Creating local businesses (village entrepreneur)
• Providing technical/admin training → opportunities for further income-generating activities
• Providing additional hours of good-quality lighting → opportunities for further income-generating activities
• Providing access to information (radio/TV)
Impacts (2)
MDG 7: Ensure environmental sustainability
• Reducing kerosene consumption and CO2 emissions
• Providing an affordable service with renewable energy (solar PV)
• Reducing indoor air pollution (smoke, fumes)
• Providing the opportunity to enter the carbon markets
• Reducing the risk of household fires
Impacts (3)
MDG 8: Develop a global partnership for development
• Involvement and empowerment of local communities (suppliers, distributors, end-users)
• Creating Village Energy Committees
• Private-Public Partnership
• South-South cooperation
SLRS Highlights
Sunlabob won the Ashden Award in 2007
for the concept...
… the Lighting Africa Development Marketplace Award
from the World Bank in 2008...
… and the UNEP Sasakawa Prize
in 2008!
Roll-out plan in Laos:– Phase 1 (month 1-9): installation of 10-12 charging stations
and operation under real operating conditions– Phase 2 (month 10-24): fixing operational problems that
might have arisen from phase 1 and up-scaling the system by a further 50-80 stations
– Phase 3 (month 25-48): 250+ charging stations operational
Roll-out Plan outside Laos:– Uganda: 25 million people without access to electricity, price of
kerosene: 10-15 USD for kerosene per month– Afghanistan: around 27 million people without access to electricity– Indonesia: 70 million people without access to electricity
SLRS Roll-out Plan
Future Developments: Global Expansion
Uganda
Tanzania
Afghanistan
Cambodia
Vietnam
Indonesia
Uganda
Tanzania
Afghanistan
Cambodia
Vietnam
Indonesia
South America
Risk Analysis
• Competition Risk– Outline: New potential development projects for rural electrification– Mitigating factors: Sunlabob’s experience and track record
• Grid Connection Risk– Outline: Villagers may chose to switch to grid power when available– Mitigating factors: SLRS easy re-location
High grid-connection cost
• Partner Involvement Risk– Outline: Finding initial funding for the franchisee is complex– Mitigating factors: Sunlabob support the Public sector to facilitate the Public –
Private Partnership model
Conclusion
Summary of Investment Benefits
• Fully developed business model and plan ready for implementation
• Commercial returns for a developmental type impact project
• Carbon income upside
Summary of Strengths
• Tried and tested concept and technology
• Scalable implementation plan with significant upside through international expansion
• 10 years of market experience
Entrepreneurs trained
PPP Investment Programme for Rural Electrification in …
the rest of the world!
Sunlabob Renewable Energy Ltd
PO Box 9077, Vientiane, Lao PDR - Tel: (+856 21) 313874 - Fax: (+856 21) 314045
[email protected] www.sunlabob.com
Thank you for your attention!
2nd International Scientific Conference on “Energy and Climate Change”
Organised by Energy Policy and Development Centre (KEPA)
Athens, 8-9 October 2009