Energy for Development: business opportunities for community minigrids - Jan 2014
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Transcript of Energy for Development: business opportunities for community minigrids - Jan 2014
www.energy.soton.ac.uk
Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : The Role of Energy in Development
Energy for Development: business opportunities for community minigrids
Professor AbuBakr S Bahaj Energy and Climate Change Division, Sustainable Energy Research Group Faculty of Engineering & the Environment University of Southampton, Southampton, SO17 1BJ United Kingdom
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Energy generation and services
Exploit local natural resources, understand how these can be coupled
with economic, social and environmental impacts.
Local abilities - the provisions for societies will differ by region.
System design - need to be less complex & anticipate loads.
Storage systems.
A supply chain including technical support will need to be in place.
If local natural resources are inadequate or inappropriate, a supply
chain for the delivery of energy services based on fossil fuels will need
to be established.
Need to take into account the following factors:
Possibilities for energy generation:
renewable energy - regionally and temporally variable,
initial capital cost (fuel free).
fossil energy – cost, maintenance and supply chain! 1000 kWh/m2.a
1000 .. 1500 kWh/m2.a
1500 .. 2000 kWh/m2.a
2000 .. 2500 kWh/m2.a
>2500 kWh/m2.a
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Energy provisions Intervention strategies
Internal / external
donor provides
investment
Local investment!
Training
given.
Revenue
generated.
Community has
interest in project
and are prepared
to run it.
Scheme is
sustainable
and is
replicable.
External
donor
supply and
install
equipment
Minimum training,
No supply chain or
revenue generation.
Minimal community
engagement
After some time, system
fails and is not repaired
etc.
X
Community
engagement is key
A better pattern, something like the following:
==
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
=== This sits at the heart of the E4D project.
Energy provisions
1. Capital costs
2. Operational costs
3. Income generation.
Options:
• Banks
• Micro financing companies
• Governments
• etc
How can such
an intervention
be financed?
Intervention strategies
Aim for the better pattern:
– Finance
Internal / external
donor provides
investment
Local investment!
Training
given.
Revenue
generated.
Community has
interest in project
and are prepared
to run it.
Scheme is
sustainable
and is
replicable. Community engagement is key
==
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
E4D project aims
To establish and implement, easy to replicate,
sustainable decentralised off-grid electricity.
Specific to the promotion of both development,
alleviate poverty and improves wellbeing in rural
communities in East Africa.
Tailor made solutions to meet the productivity
needs of target communities.
Develop easy to apply tools, to ensure long term
financial viability whilst addressing the associated
societal and health impacts.
Tools and designs to replicate the projects.
Replication of Rural Decentralised off-grid Electricity Generation through
Technology and Business Innovation
www.energyfordevelopment.net
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community led energy supply services
Community ownership and enhanced wellbeing.
Commerce creating value especially of trade / agricultural production.
Services that can address other societal needs such as educational and
primary health requirements.
Cottage industries / SMEs geared to enhance the wellbeing and wealth of
the community.
The needed platform for capacity building to enhance growth / retain
capabilities / expand.
Core businesses and community ownership to be enhanced / created and
developed. This can provide/facilitate the following:
Various possibilities for the organisation of an energy supply provider:
Initial set-up and technology capital costs.
Funding streams to be addressed at the outset.
Holistic approach – community at centre.
Revenue generation!
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services Kenya: Kitonyoni
Implementation approach:
Understanding country / region.
Developing knowledgebase.
Assess and review aspirations / needs.
Community based structures.
Enhancing what is already there.
Business approach / revenue generation.
established.
System design and overall procurement.
Installation.
Operational analysis.
Business case evidence.
Replication.
Kitonyoni sub-location
Mwania sub-
location
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
People/km2
Population density
0-5 km
5-10 km
10-20 km
20-50 km
50-100 km
100-250 km
Distance from the grid
Understanding country / region.
=>Exclude <50 people/km2
=>Exclude <15 km from grid
Kenya: regional understanding
(People/km2).km
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Kenya: Makueni district : 160km south of Nairobi, 27.1 km2, population density
96 persons/km2, total population app. 2,590
Mii
Kangondi
Kavingoni
KwaKavise
Kiliza
Kitonyoni
!!!
!!!!!!!!!!
!!!!
!
!!!
!!!!!!!!!! !!
!
"
Mwania
0 2 41 Kilometers
Where do Households mostly charge their mobile phones?
Using own electricty
Using neighbours electricity
At Kitonyoni/Mwania TC
Other
Kitonyoni_roads
Kitonyoni/Mwania Sub Location
Assessing needs
Control Community
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Lighting data from the catchment areas. - Kitonyoni (left) and Mwania (right)
Kenya: Makueni district
Mii
Kangondi
Kavingoni
KwaKavise
Kiliza
Kitonyoni
!!!
!!!!!!!!!!
!!!!
!
!!!
!!!!!!!!!! !!
!
"
Mwania
0 2 41 Kilometers
Do HH own a paraffin lantern?
Yes
No
Kitonyoni_roads
Kitonyoni/Mwania Sub Location
Do Households own paraffin lanterns?
Assessing needs
Control Community
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Each dot on represents a household and the
legend identify the available platform for device
charging.
Mii
Kangondi
Kavingoni
KwaKavise
Kiliza
Kitonyoni
0 2 4 1 Km
Solar Panels
Own Generator
Vehicle Battery
No Electricity in HH
Other
Kitonyoni_roads
Kenya: Kitonyoni
Assessing consumption
-0.02
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
Rela
tive
fre
qu
en
cy
Monthly lighting spend (KSh)
Poly. (Kitonyoni) Poly. (Mwania)
Lighting cost from the catchment areas Power availability
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Concept and project development Kenya: E4D Concept
Business consumption
Lighting (Lanterns)
Mobile Phone Charging
Sale of Water
Remote charging Stations
On-going
income
Households/ education
Local Trading Centre
Community Members
Sub Location Development
Benefit Group
Cooperative &
Committees
Initial
Capital
Initial Income for Co-Op through Shareholder & Membership
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Power supply/income structure Kenya: Kitonyoni == power supply
RL
S s
yste
m in
eve
ry h
ou
se
ho
ld
Trading Centre
Business Business
School
Health Centre
Business
RL
S s
yste
m in
eve
ry
ho
use
ho
ld
Minigrid – connecting businesses, health centre & schools #40. Residential housing have rechargeable lighting systems # target 500 households.
Business
Business
ESCO Minigrid
Churches
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
System deployment / connectivity Kenya: Kitonyoni == Deployment
Provide lighting to over 500 households and power to businesses
− Trade Centre : Via minigrid network in the
−Households: Via rechargeable lantern / battery
−Develop legislative framework to attain project sustainability
(a)
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
System design / installation Kenya: Kitonyoni == System installed 13.5 kWp PV, 4 strings each @ ~60V ~9A
4N
o. 4
8V
80
A
15 kW, 1500 rpm,
230V, single phase,
max 21.5 kW
48
V 8
00
Ah
2No. 10kVA
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Business models Kenya: Kitonyoni: Tariffs
ESCO/ Co-operative Society
Battery Charging Business
Retail Businesses
Health Clinic/ School
Tariff 1 - Tiered
Tariff 2 - Fixed
Lanterns supply
Energy supply
Microcredit
• Provide lighting 3000 people, power to 40 businesses.
• Rainwater harvesting from canopy.
• Income generation for the Co-operative and the project.
Churches
Households as direct customer for battery charging
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Additionality Kenya: Kitonyoni – rain harvesting
Various possibilities could be envisaged
that combine energy and water provision
in water stressed areas:
Canopy used to harvest rain water.
Energy supply that combines the
provision of electricity for normal use
in businesses/housing as well as
water pumping.
Additional revenue generation for the
cooperative.
Scaling of the approach is possibel?
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services Kenya: Achievements
Access
Affordability assessment
Pricing
Operation
Payment mechanism
Monitoring & evaluation
Governess
Operations & maintenance
Ownership finance
Community engagement
Outputs
Templates to replicate
Local supply chain
Private Sector
engagement
Project economics
Project economics
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community status Kenya: Kitonyoni
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Impacts and development Kenya: E4D Concept
Business consumption
Lighting (Lanterns)
Mobile Phone Charging
Sale of Water
Remote charging Stations
On-going
income
Households/ education
Local Trading Centre
Community Members
Sub Location Development
Benefit Group
Cooperative &
Committees
Initial
Capital
Initial Income for Co-Op through Shareholder & Membership
Health Jobs / new businesses
Community invigoration
Poverty alleviation
Impacts
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services Kenya: Kitonyoni extension = some examples
Maternity unit
Grid extension
Mobile power
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Concept and project replication Project timeline
Network formation (2012/3)
Major conference (2014)
Outputs (2011 – 2014):
Workshops, publications,
capacity building and training
2 village systems to be installed
(2013/4)
1st village system installed (2012)
Baseline surveys
(2010/11)
Endline surveys impacts
4th village system installed (2014)
ENERGY FOR DEVELOPMENT
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Concept and project replication Future/Replication
Kitonyoni, Kenya
• 13.5kWp Solar PV • 15kWp Generator • 48V 800Ah Storage
Oloika, Kenya
• 13.5kWp Solar PV • 48V 800Ah Storage
Bambouti, Cameroon
• 6kWp Solar PV
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services Kenya: Kitonyoni
This work is supported by the EPSRC and in collaboration with many partners – www.energyfordevelopment.net
www.energy.soton.ac.uk
Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : The Role of Energy in Development
This work is part of the activities of the Energy and Climate Change Division and the Sustainable Energy Research Group at the University of Southampton and is supported by RCUK / EPSRC /DFID
Thank you ..
www.energyfor development.net