INTRODUCTION Although renewable energy technology development has come a long way with innovations and improvements in wind and solar technologies sources of renewable energy have so far not been widely used for off-grid rural electrification in dev- eloping countries The traditional barrier to the introduction of renewable energy technologies is cost However intema- tional public and private funding subsidies are now helping to facilitate the development of renewable energy sources us- ing small hybrid systems for the distributed generation In addition to providing a source of renewable energy these funds help sustain and expand economic development projects in remote rural communities

HYBRID SYSTEMS All of the pilot projects described below employ so-called ldquohy- bridrdquo systems-electric generators that combine solar wind or micro-hydro technologies in one unit These stand-alone units are especially beneficial in remote off-grid areas where geography and scale limit the types of equipment that can be used In addition to providing an alternative power supply hybrid systems help eliminate or decrease greenhouse gas

(GHG) and carbon dioxide (CO) emissions These systems which use solar wind or hydro energy for power generation and distribution are considered ldquocleanrdquo sources when com- pared to the diesel-powered electric generators that are tradi- tionally used in small remote villages in developing countries A hybrid system using a combination of solar and wind power generators generally increases the average power capacity by 10-30 when compared to a traditional single unit using either solar or wind energy A hybrid solarwind system is more efficient since the solar system provides power for the unit during the day to charge the storage batteries while the wind system is used to supply power or store energy during the night when solar energy is not available Hybrid micro-hydro sys- tems are generally used when the water flow is seasonal and requires solar- wind- or diesel-powered generators as backup Each system is designed to maximize local natural resources using efficiency calculations from wind and solar profiles for each region

CERTIFIED EMISSION REDUCTIONS By facilitating the reduction of GHG and CO emissions hybrid renewable energy systems are eligible for carbon se- questration ldquocreditsrdquo or ldquooffsetsrdquo also known as certified emission reductions (CERs) CERs are calculated by the amount of carbon emissions that would have been emitted if a diesel or other traditional electric generator were used to produce the same amount of electricity CERs must be certified audited monitored and verified in accordance with Clean Development Mechanismrsquo principles outlined in the Kyoto Protocol2 Procedures must be developed for each site on a case-specific basis that intends to acquire CERs for possible funding support from the sale trade or banking of carbon credits Power companies in countries with CO emission reduction regulations are willing to buy

November2004 25

I

I 1

i i I

I

I I j

FUNDING EMISSION REDUCTION PROJECTS To combat climate change and improve overall living standards in developing countries several organizations and multilateral entities currently support international renewable energy efforts and projects that would not be feas- ible without funding subsidies The World Banks carbon finance initia- tives are part of the larger global effort to combat climate change To encourage renewable energy use and GHG reduction projects worldwide the Solar panels provide basic lighting to a remote off-grid village in Palawan the PhiiiDDines

CERs to offset emissions from coal-burning electric power plants to meet these requirements Although the Kyoto Pro- tocol has not been adopted in the United States several power companies-including Cinergy Corp which invested $ 5 5 million in a waste wood facility that generates 25 MW of electricity per year FPL Energy which generates 1700 MW of wind power from 28 wind farms in 10 states and MidAmerican Energy which invested $323 million to pro- duce 400 MW of renewable energy in Iowa-have taken vol- untary measures to reduce GHG emissions and at the same time reduce their risk of potential mandates should such regulations become law3

RENEWABLE ENERGY CERTIFICATES Renewable energy certificates (RECs) also known as green tags green certificates or tradable renewable certificates (TRCS)~ are also available as credit for the reduction of GHG emissions from renewable energy sources RECs are similar to CERs in that they provide credit for the generation of electricity from renewable energy sources US companies located in states that have established Renewable Energy Portfolio Standards may invest in renewable energy projects in developing countries and make use of the RECs obtained from their investments to meet commitments in the United States RECs can be used to meet regulations in California Arizona Oregon Maine and New York For example the New York Public Service Commission now requires that 25 of its electricity come from renewable sources by 2013 while Los Angeles gets 3 of its power from renewable energy sources under Californias Renewable Energy Portfolio Stan- dard which requires that 20 To of its energy to be generated from renewable sources by 201 75 Several power companies have made use of RECs including Johnson ampJohnson (o which has made a commitment to reduce CO emissions 7 below 1990 levels by 2010 using RECs and Alcoa which has purchased RECs to offset 100 of the annual electricity used by its corporate buildings6

World Bank has established several financing mechanisms

The Prototype Carbon Fund-the first carbon fund The Community Development Carbon Fund which provides carbon finance to small-scale projects in the poorer rural areas of the developing world The BioCarbon Fund which attempts to demonstrate projects that sequester or conserve carbon in forest and agro-ecosystems and The World Bank Staff Climate Protection Program which directly supports community-level projects in developing countries that also produce carbon emis- sion reductions

In the United States the market for CERs and RECs is sup- ported by several entities including The Chicago Climate Ex- change8 the California Climate Action Registryg a nonprofit publicprivate partnership that serves as a voluntary GHG reg- istry to promote early actions by companies to reduce GHG emissions the Climate TrustlO which has executed $5 million worth of CERs to offset the emission of 25 million metric tons of CO to meet the demands of the Oregon Power Plant Offset Program and the International Utility Efficiency Part- nership (IUEP) which provldes funding for the development of international environmentally friendly energy projects that reduce CO emissions in 15 countries

FEASIBILITY ASSESSMENT THROUGH PILOT PROJECTS Mhile the use of CER and REC mechanisms have gained popu- larity through large-scale renewable energy projects the pilot programs detailed below demonstrate how these mechanisms could be employed by small hybrid projects to provide addi- tional revenue sources that would be instrumental in sustain- ing these projects on a long-term basis Worlung in conjunction with the US-Asia Environmental Partnership and the US Agency for International Development (US AID) several US companies including C Trade and Winrock International have undertaken pilot projects for renewable energy development

26 November2004

in developing countries to demonstrate the feasibility of US-

ing hybrid systems in this manner In each case the projects were site-specific with each system designed and sized on a case-specific basis to cater to the local area In most cases the equipment for the hybrid system was imported from the United States Once the pilot projects are established the next step will be to certify audit monitor and verify CER creation The following descriptions of small-scale renewable energy projects in the Philippines Sri Lanka the Maldives Indonesia and India illustrate the feasibility of providing reliable power sup- ply to remote off-grid areas Several other developing coun- tries have potential for using similar renewable energy technologies to displace or eliminate the use of fossil fuels for rural electrification

The Philippines The Philippine government has encouraged the develop- ment of renewable energy projects with more than (USD)$100 million invested in this area since 1970 There are approximately 5000 solar and 400 wind installations in the Philippines contributing an estimated 300000 barrels of fuel equivalent12 Despite substantial progress in rural elec- trification in recent years 18 or approximately 5000 of 42000 villages are still not electrified Several hundred of these villages are in extremely remote areas with no elec- tricity and no capacity to be connected to the existing elec- trical grid system Some of these villages have small electric generators that use fossil fuels to supply electricity to the village on an intermittent basis

To alleviate a portion of the off-grid electricity needs in the Philippines in 2001 USAID funded a (USD) $95-million project to electrify 160 remote villages in Mindanao prov- ince using a combination of small solar wind and micro- hydro systems As of July 2002 10 villages covering 300 households had been supplied with electricity in the form of solar battery charging stations by Winrock In addition C Trade is implementing the feasibility assessment of a pilot project on the island of Palawan in the Philippines which uses easily replicable small wind turbines and solar panels to power a mini ice plant Many small fishing villages have no refrigeration facilities or reliable sources of electricity to power ice-making equipment The small renewable energy system is also designed to serve as a battery recharging station which allows villagers to extract a fee to charge batteries in the boats used by tourists visiting the nearby caves

In October 2000 Synergy Power Corp installed a wind- solar-diesel hybrid system on the island of Atulayan located 2 km off the coast of Luzon The local utility formed a village cooperative to perform system maintenance and collect revenue from the sale of the electricity and battery charging facilities Once the hybrid system was installed the village had 24-hr power reliability compared to only

four hours per day supplied by backup diesel-powered gen- erators prior to the project13 Shell International Renewables in collaboration with the local government financed a vil- lage mini-grid in the Philippines in late 1999 Shell installed a set of 3-kW photovoltaic modules equipped with 10-kW backup propane generators and a battery bank to power a mini-grid of 80 homes At approximately (USD)$200 per kWh the service was expensive relative to the cost of main- stream grid electricity but nontheless provided a valuable service to the village14

Sri Lanka In 2002 the Sri Lankan govemment and the World Bank funded rural electrification of remote off-grid villages using subsidies designated for distributed generation as part of the Renewable Energy for Rural Economic Development Project in Sri Lanka The project aims to improve the quality of rural life by using off-grid renewable energy technologies to pro- vide electricity in remote areas and promote private sector power generation from renewable energy resources The project

Hybrid system in Pune India using a combination of a 3-kW wind turbine and solar panels

November2004 27

Dr Dayal demonstrates arsquohybrid system for rural electrification in the Philippines The system uses a 30-W flexible solar panel and wind turbine (shown in background)

promotes the solar home system market and expansion to smaller hybrid systems accessible to the poor and suited to community applications such as health clinics schools and public service^^ Under this funding scheme in 2002 Solar Dynamics installed a basic DC electrical power supply us- ing two 60-W solar photovoltaic panels at a cost of approxi- mately (USD)$SOO per solar home system More than 1000 homes in rural villages were electrified in the first year of the program

Another project conducted by C Trade and Southwest Wind Power installed a pilot hybrid power supply using a combina- tion of wind turbines and solar panels designed to electrify Baththalangunduwa a remote island village off the east cen- tral coast of Sri Lanka that had no reliable source of power or water Before the project oil-powered electric generators pro- vided all of the villagersquos power Because oil delivery was sporadic and dependent on shipments by boat the reliability of electric power in the village was poor The introduction of a stand-alone power system provided an immediate solution to this unreliable source of fuel and power supply for water puri- fication basic lighting and telecommunications needs for the families living on the island Small hybrid units were also in- stalled on microwave relay towers used for cell phone com- munications The small wind turbines mounted in the relay tower structure provide significant power to relay transmitter equipment offsetting the power previously derived from oil generators

The Maldives The makeup and geography of the Maldives is similar to that of the Philippines The Maldives is made up of more than 1000 coral islands 200 of which are inhab- ited and 80 supporting tourist resorts The Maldives has no conventional energy resources and depends on imported diesel fuel oil to meet all of its energy needs In 2001 the Maldives had a electricity generating capacity of only 025 million kWIS How- ever as a result of ongoing renew- able energy projects the countryrsquos electricity generation growth rate is estimated to increase by 75 through 2010

The local affinity toward the use of traditional diesel oil-pow- ered generators has contributed t o t h e contaminat ion a n d pollution of these small coral islands-the countryrsquos main

asset for attracting tourism The government of the Maldives recognizes the detrimental effects of existing practices and has sought assistance in developing a renewable energy de- velopment strategy To counter the current local preference for diesel oil in 2002 the World Bank and the Asian Devel- opment Bank cofunded (USD)$lS million for the develop- ment of rural electrification of the Maldives promoting renewable energy through the World Bankrsquos Global Envi- ronment Facility (GEF) Program More recently GEF con- tributed (USD)$750000 to a (USD)$27-million UN project to reduce GHG emissions from fossil fuel activities and promote the use of renewable energy in the Maldives

Indonesia Indonesia has installed electrical generating capacity estimated at 214 gigawatts The majority of the power comes from ther- mal sources (87) with 105 generated from hydropower and 25 from geothermal sources Indonesia faces an electric- ity supply crisis with intermittent blackouts on the main island of Java In addition the archipelago geography of the country further impedes affordability and access to reli- able sources of electricity Because the majority of Indonesiarsquos power production is dependent on fossil fuels the level of Indonesiarsquos carbon emissions per dollar of GDP (Le car- bon intensity) is moderately high compared to its Asian neighbors Between 1980 and 2001 Indonesiarsquos carbon in- tensity grew from 012 to 016 (metric tons of carbon per

thousand $) which was higher than Indiarsquos (009) Japanrsquos ( O l ) and Thailandrsquos (014)16

The Asian Development Bank is now promoting the development of renewable energy using palm oil waste that is generated Indonesia is the second largest producer after Malaysia of palm oil waste in the world More than three million hectares are used for palm oil plantations which sup- ply approximately 300 palm oil mills These palm oil mills produce significant amounts of biomass waste and generate large quantities of wastewater A single mill has the capacity to process 60 tons of palm oil waste per hour and 11000 cubic meters of methane which could be used to provide 15 MW of electricity

India More than 70 of Indiarsquos population lives in rural areas and has limited access to electricity Current electricity generation in In- dia is seriously below peak demand The govemment of India has targeted capacity increases of 100OOO M W over the next 10 years As of January 2002 total installed Indian power generat- ing capacity was 120000 MWI6 Small solar photovoltaic sys- tems have been successfully installed for rural electrification in India Since 1994 more than 9000 remote homes have been provided with DC-based lighting using small solar photovoltaic panels manufactured by Omega Electronics as part of a village eleqtrification program with the support of the Ministry of Non- Conventional Energy Sources in the State of Kerala Indiardquo The distributed generation project uses individual solar home light- ing systems consisting of 600 lumen lights powered from a tubular deep cell battery charged by a solar module providing electricity lighting for three to four hours daily

Because of the countryrsquos heavy reliance on coal carbon emis- sions are rising in India However India is a non-Annex I coun- try under the United Nations Framework Convention on Climate Changersquo and therefore is not obligated to reduce its emissions of carbon or GHGs Nevertheless nongrid areas depend heavily on renewable energy projects India has one of the largest national programs in the developing world to promote the use of solar energy Use of solar power is advocated as a way to pro- vide energy to regions experiencing shortages and in many small villages and remote areas solar photovoltaic systems are far more effective to implement than provide conventional energy though new transmission systems Wind-generated energy is also in wide- spread use throughout India According to the countryrsquos Minis- try of Non-Conventional Energy Sources India will exceed its target of installing 1500 M W of wind power by 2007 Improved grid connections and incentives to wind-power producers have increased the use of wind energy as a reliable power source in recent years Another source of potential renewable energy in India is biomass The country is among the worldrsquos largest pro- ducers of sugar and it uses sugar cane waste for energy during the harvest period

CONCLUSION Renewable energy projects can serve a critical niche in supply- ing much-needed electricity to rural off-grid communities in developing countries and in helping to reduce their reliance on fossil energy However the benefits of using subsidies from carbon credits and carbon trading to sustain these projects are still being studied The potential for applying REC and CER credits to help offset the costs of implementing hybrid projects in developing countries will likely increase with the increased use of renewable energy technologies even if the initial GHG credit revenue is small The expansion of international public and private funding mechanisms will also play a vital role in future development and sustainability of renewable energy projects in developing countries Pilot projects have been used to demonstrate the feasibility of establishing an infrastructure based on renewable energy systems in rural communities throughout the developing world The pilot projects described in this article provide a model for sustainable renewable en- ergy development to displace fossil energy use and help re- duce GHG emissions which is key in finding a solution to the effects of global warming worldwide 0

REFERENCES 1 2

3

4

5

6

The Clean Development Mechanism See httpcdmunfcccint Dayal P Carbon Trading and Sequestration Projects Offer Global Warm- ing Solutions EM 2000 March 15-24 The Edison Electric Institute See httpwwweeiorgindustry_issues environmenticlimateiindex Tradable Renewable Certificates (RECs) See httpcrsZnetihandbook TRC-Handbookhtm ldquoStates Take Lead in Widening Use of Green Energyrdquo The Wall Street Journal September 22 2004 p 6 Blue KN The Role of Renewable Energy Certificates (RECs) in Effective GHG Management Programs Presented at the 7th Annual Electric Utili- ties Environmental Conference Tucson Arizona January 21 2004 Carbon Finance at the World Bank See httpcarbonfinanceorg The Chicago Climate Exchange See httpwwwchicagoclimate exchangecom Levin J The California Climate Action Registry Presented at the 7th Annual Electric Utilities Environmental Conference Tucson Arizona January 22 2004

10 Climate Trust See httpwwNclimatetrustorgaboutushtml 11 International Utility Efficiency Partnership See httpwwwjiorg 12 The Asian Development Bank See httpladborg 13 Renewable Energy Policy Framework Republic of Philippines Department

of Energy and US Department of Energy National Renewable Energy Laboratory June 1999

14 Renewable Energy GEF Partners with Business for a Better World and The World Bank See httpwww wdsworldbankorgservleti

3 5 South Asia Regional Overview Energy Information Agency US Depart- ment of Energy September 2003 See httpwwweiadoegovemeucabs maldiveshtm1

16 Country Analysis Briefi Energy Information Agency US Department of Energy See httpwwwenergygovl

17 Ammini Group of Companies See httpwwwamminicom

7 8

9

November2004 29

FUNDING EMISSION REDUCTION PROJECTS To combat climate change and improve overall living standards in developing countries several organizations and multilateral entities currently support international renewable energy efforts and projects that would not be feas- ible without funding subsidies The World Banks carbon finance initia- tives are part of the larger global effort to combat climate change To encourage renewable energy use and GHG reduction projects worldwide the Solar panels provide basic lighting to a remote off-grid village in Palawan the PhiiiDDines

CERs to offset emissions from coal-burning electric power plants to meet these requirements Although the Kyoto Pro- tocol has not been adopted in the United States several power companies-including Cinergy Corp which invested $ 5 5 million in a waste wood facility that generates 25 MW of electricity per year FPL Energy which generates 1700 MW of wind power from 28 wind farms in 10 states and MidAmerican Energy which invested $323 million to pro- duce 400 MW of renewable energy in Iowa-have taken vol- untary measures to reduce GHG emissions and at the same time reduce their risk of potential mandates should such regulations become law3

RENEWABLE ENERGY CERTIFICATES Renewable energy certificates (RECs) also known as green tags green certificates or tradable renewable certificates (TRCS)~ are also available as credit for the reduction of GHG emissions from renewable energy sources RECs are similar to CERs in that they provide credit for the generation of electricity from renewable energy sources US companies located in states that have established Renewable Energy Portfolio Standards may invest in renewable energy projects in developing countries and make use of the RECs obtained from their investments to meet commitments in the United States RECs can be used to meet regulations in California Arizona Oregon Maine and New York For example the New York Public Service Commission now requires that 25 of its electricity come from renewable sources by 2013 while Los Angeles gets 3 of its power from renewable energy sources under Californias Renewable Energy Portfolio Stan- dard which requires that 20 To of its energy to be generated from renewable sources by 201 75 Several power companies have made use of RECs including Johnson ampJohnson (o which has made a commitment to reduce CO emissions 7 below 1990 levels by 2010 using RECs and Alcoa which has purchased RECs to offset 100 of the annual electricity used by its corporate buildings6

World Bank has established several financing mechanisms

The Prototype Carbon Fund-the first carbon fund The Community Development Carbon Fund which provides carbon finance to small-scale projects in the poorer rural areas of the developing world The BioCarbon Fund which attempts to demonstrate projects that sequester or conserve carbon in forest and agro-ecosystems and The World Bank Staff Climate Protection Program which directly supports community-level projects in developing countries that also produce carbon emis- sion reductions

In the United States the market for CERs and RECs is sup- ported by several entities including The Chicago Climate Ex- change8 the California Climate Action Registryg a nonprofit publicprivate partnership that serves as a voluntary GHG reg- istry to promote early actions by companies to reduce GHG emissions the Climate TrustlO which has executed $5 million worth of CERs to offset the emission of 25 million metric tons of CO to meet the demands of the Oregon Power Plant Offset Program and the International Utility Efficiency Part- nership (IUEP) which provldes funding for the development of international environmentally friendly energy projects that reduce CO emissions in 15 countries

FEASIBILITY ASSESSMENT THROUGH PILOT PROJECTS Mhile the use of CER and REC mechanisms have gained popu- larity through large-scale renewable energy projects the pilot programs detailed below demonstrate how these mechanisms could be employed by small hybrid projects to provide addi- tional revenue sources that would be instrumental in sustain- ing these projects on a long-term basis Worlung in conjunction with the US-Asia Environmental Partnership and the US Agency for International Development (US AID) several US companies including C Trade and Winrock International have undertaken pilot projects for renewable energy development

26 November2004

in developing countries to demonstrate the feasibility of US-

ing hybrid systems in this manner In each case the projects were site-specific with each system designed and sized on a case-specific basis to cater to the local area In most cases the equipment for the hybrid system was imported from the United States Once the pilot projects are established the next step will be to certify audit monitor and verify CER creation The following descriptions of small-scale renewable energy projects in the Philippines Sri Lanka the Maldives Indonesia and India illustrate the feasibility of providing reliable power sup- ply to remote off-grid areas Several other developing coun- tries have potential for using similar renewable energy technologies to displace or eliminate the use of fossil fuels for rural electrification

The Philippines The Philippine government has encouraged the develop- ment of renewable energy projects with more than (USD)$100 million invested in this area since 1970 There are approximately 5000 solar and 400 wind installations in the Philippines contributing an estimated 300000 barrels of fuel equivalent12 Despite substantial progress in rural elec- trification in recent years 18 or approximately 5000 of 42000 villages are still not electrified Several hundred of these villages are in extremely remote areas with no elec- tricity and no capacity to be connected to the existing elec- trical grid system Some of these villages have small electric generators that use fossil fuels to supply electricity to the village on an intermittent basis

To alleviate a portion of the off-grid electricity needs in the Philippines in 2001 USAID funded a (USD) $95-million project to electrify 160 remote villages in Mindanao prov- ince using a combination of small solar wind and micro- hydro systems As of July 2002 10 villages covering 300 households had been supplied with electricity in the form of solar battery charging stations by Winrock In addition C Trade is implementing the feasibility assessment of a pilot project on the island of Palawan in the Philippines which uses easily replicable small wind turbines and solar panels to power a mini ice plant Many small fishing villages have no refrigeration facilities or reliable sources of electricity to power ice-making equipment The small renewable energy system is also designed to serve as a battery recharging station which allows villagers to extract a fee to charge batteries in the boats used by tourists visiting the nearby caves

In October 2000 Synergy Power Corp installed a wind- solar-diesel hybrid system on the island of Atulayan located 2 km off the coast of Luzon The local utility formed a village cooperative to perform system maintenance and collect revenue from the sale of the electricity and battery charging facilities Once the hybrid system was installed the village had 24-hr power reliability compared to only

four hours per day supplied by backup diesel-powered gen- erators prior to the project13 Shell International Renewables in collaboration with the local government financed a vil- lage mini-grid in the Philippines in late 1999 Shell installed a set of 3-kW photovoltaic modules equipped with 10-kW backup propane generators and a battery bank to power a mini-grid of 80 homes At approximately (USD)$200 per kWh the service was expensive relative to the cost of main- stream grid electricity but nontheless provided a valuable service to the village14

Sri Lanka In 2002 the Sri Lankan govemment and the World Bank funded rural electrification of remote off-grid villages using subsidies designated for distributed generation as part of the Renewable Energy for Rural Economic Development Project in Sri Lanka The project aims to improve the quality of rural life by using off-grid renewable energy technologies to pro- vide electricity in remote areas and promote private sector power generation from renewable energy resources The project

Hybrid system in Pune India using a combination of a 3-kW wind turbine and solar panels

November2004 27

Dr Dayal demonstrates arsquohybrid system for rural electrification in the Philippines The system uses a 30-W flexible solar panel and wind turbine (shown in background)

promotes the solar home system market and expansion to smaller hybrid systems accessible to the poor and suited to community applications such as health clinics schools and public service^^ Under this funding scheme in 2002 Solar Dynamics installed a basic DC electrical power supply us- ing two 60-W solar photovoltaic panels at a cost of approxi- mately (USD)$SOO per solar home system More than 1000 homes in rural villages were electrified in the first year of the program

Another project conducted by C Trade and Southwest Wind Power installed a pilot hybrid power supply using a combina- tion of wind turbines and solar panels designed to electrify Baththalangunduwa a remote island village off the east cen- tral coast of Sri Lanka that had no reliable source of power or water Before the project oil-powered electric generators pro- vided all of the villagersquos power Because oil delivery was sporadic and dependent on shipments by boat the reliability of electric power in the village was poor The introduction of a stand-alone power system provided an immediate solution to this unreliable source of fuel and power supply for water puri- fication basic lighting and telecommunications needs for the families living on the island Small hybrid units were also in- stalled on microwave relay towers used for cell phone com- munications The small wind turbines mounted in the relay tower structure provide significant power to relay transmitter equipment offsetting the power previously derived from oil generators

The Maldives The makeup and geography of the Maldives is similar to that of the Philippines The Maldives is made up of more than 1000 coral islands 200 of which are inhab- ited and 80 supporting tourist resorts The Maldives has no conventional energy resources and depends on imported diesel fuel oil to meet all of its energy needs In 2001 the Maldives had a electricity generating capacity of only 025 million kWIS How- ever as a result of ongoing renew- able energy projects the countryrsquos electricity generation growth rate is estimated to increase by 75 through 2010

The local affinity toward the use of traditional diesel oil-pow- ered generators has contributed t o t h e contaminat ion a n d pollution of these small coral islands-the countryrsquos main

asset for attracting tourism The government of the Maldives recognizes the detrimental effects of existing practices and has sought assistance in developing a renewable energy de- velopment strategy To counter the current local preference for diesel oil in 2002 the World Bank and the Asian Devel- opment Bank cofunded (USD)$lS million for the develop- ment of rural electrification of the Maldives promoting renewable energy through the World Bankrsquos Global Envi- ronment Facility (GEF) Program More recently GEF con- tributed (USD)$750000 to a (USD)$27-million UN project to reduce GHG emissions from fossil fuel activities and promote the use of renewable energy in the Maldives

Indonesia Indonesia has installed electrical generating capacity estimated at 214 gigawatts The majority of the power comes from ther- mal sources (87) with 105 generated from hydropower and 25 from geothermal sources Indonesia faces an electric- ity supply crisis with intermittent blackouts on the main island of Java In addition the archipelago geography of the country further impedes affordability and access to reli- able sources of electricity Because the majority of Indonesiarsquos power production is dependent on fossil fuels the level of Indonesiarsquos carbon emissions per dollar of GDP (Le car- bon intensity) is moderately high compared to its Asian neighbors Between 1980 and 2001 Indonesiarsquos carbon in- tensity grew from 012 to 016 (metric tons of carbon per

thousand $) which was higher than Indiarsquos (009) Japanrsquos ( O l ) and Thailandrsquos (014)16

The Asian Development Bank is now promoting the development of renewable energy using palm oil waste that is generated Indonesia is the second largest producer after Malaysia of palm oil waste in the world More than three million hectares are used for palm oil plantations which sup- ply approximately 300 palm oil mills These palm oil mills produce significant amounts of biomass waste and generate large quantities of wastewater A single mill has the capacity to process 60 tons of palm oil waste per hour and 11000 cubic meters of methane which could be used to provide 15 MW of electricity

India More than 70 of Indiarsquos population lives in rural areas and has limited access to electricity Current electricity generation in In- dia is seriously below peak demand The govemment of India has targeted capacity increases of 100OOO M W over the next 10 years As of January 2002 total installed Indian power generat- ing capacity was 120000 MWI6 Small solar photovoltaic sys- tems have been successfully installed for rural electrification in India Since 1994 more than 9000 remote homes have been provided with DC-based lighting using small solar photovoltaic panels manufactured by Omega Electronics as part of a village eleqtrification program with the support of the Ministry of Non- Conventional Energy Sources in the State of Kerala Indiardquo The distributed generation project uses individual solar home light- ing systems consisting of 600 lumen lights powered from a tubular deep cell battery charged by a solar module providing electricity lighting for three to four hours daily

Because of the countryrsquos heavy reliance on coal carbon emis- sions are rising in India However India is a non-Annex I coun- try under the United Nations Framework Convention on Climate Changersquo and therefore is not obligated to reduce its emissions of carbon or GHGs Nevertheless nongrid areas depend heavily on renewable energy projects India has one of the largest national programs in the developing world to promote the use of solar energy Use of solar power is advocated as a way to pro- vide energy to regions experiencing shortages and in many small villages and remote areas solar photovoltaic systems are far more effective to implement than provide conventional energy though new transmission systems Wind-generated energy is also in wide- spread use throughout India According to the countryrsquos Minis- try of Non-Conventional Energy Sources India will exceed its target of installing 1500 M W of wind power by 2007 Improved grid connections and incentives to wind-power producers have increased the use of wind energy as a reliable power source in recent years Another source of potential renewable energy in India is biomass The country is among the worldrsquos largest pro- ducers of sugar and it uses sugar cane waste for energy during the harvest period

CONCLUSION Renewable energy projects can serve a critical niche in supply- ing much-needed electricity to rural off-grid communities in developing countries and in helping to reduce their reliance on fossil energy However the benefits of using subsidies from carbon credits and carbon trading to sustain these projects are still being studied The potential for applying REC and CER credits to help offset the costs of implementing hybrid projects in developing countries will likely increase with the increased use of renewable energy technologies even if the initial GHG credit revenue is small The expansion of international public and private funding mechanisms will also play a vital role in future development and sustainability of renewable energy projects in developing countries Pilot projects have been used to demonstrate the feasibility of establishing an infrastructure based on renewable energy systems in rural communities throughout the developing world The pilot projects described in this article provide a model for sustainable renewable en- ergy development to displace fossil energy use and help re- duce GHG emissions which is key in finding a solution to the effects of global warming worldwide 0

REFERENCES 1 2

3

4

5

6

The Clean Development Mechanism See httpcdmunfcccint Dayal P Carbon Trading and Sequestration Projects Offer Global Warm- ing Solutions EM 2000 March 15-24 The Edison Electric Institute See httpwwweeiorgindustry_issues environmenticlimateiindex Tradable Renewable Certificates (RECs) See httpcrsZnetihandbook TRC-Handbookhtm ldquoStates Take Lead in Widening Use of Green Energyrdquo The Wall Street Journal September 22 2004 p 6 Blue KN The Role of Renewable Energy Certificates (RECs) in Effective GHG Management Programs Presented at the 7th Annual Electric Utili- ties Environmental Conference Tucson Arizona January 21 2004 Carbon Finance at the World Bank See httpcarbonfinanceorg The Chicago Climate Exchange See httpwwwchicagoclimate exchangecom Levin J The California Climate Action Registry Presented at the 7th Annual Electric Utilities Environmental Conference Tucson Arizona January 22 2004

10 Climate Trust See httpwwNclimatetrustorgaboutushtml 11 International Utility Efficiency Partnership See httpwwwjiorg 12 The Asian Development Bank See httpladborg 13 Renewable Energy Policy Framework Republic of Philippines Department

of Energy and US Department of Energy National Renewable Energy Laboratory June 1999

14 Renewable Energy GEF Partners with Business for a Better World and The World Bank See httpwww wdsworldbankorgservleti

3 5 South Asia Regional Overview Energy Information Agency US Depart- ment of Energy September 2003 See httpwwweiadoegovemeucabs maldiveshtm1

16 Country Analysis Briefi Energy Information Agency US Department of Energy See httpwwwenergygovl

17 Ammini Group of Companies See httpwwwamminicom

7 8

9

November2004 29

in developing countries to demonstrate the feasibility of US-

ing hybrid systems in this manner In each case the projects were site-specific with each system designed and sized on a case-specific basis to cater to the local area In most cases the equipment for the hybrid system was imported from the United States Once the pilot projects are established the next step will be to certify audit monitor and verify CER creation The following descriptions of small-scale renewable energy projects in the Philippines Sri Lanka the Maldives Indonesia and India illustrate the feasibility of providing reliable power sup- ply to remote off-grid areas Several other developing coun- tries have potential for using similar renewable energy technologies to displace or eliminate the use of fossil fuels for rural electrification

The Philippines The Philippine government has encouraged the develop- ment of renewable energy projects with more than (USD)$100 million invested in this area since 1970 There are approximately 5000 solar and 400 wind installations in the Philippines contributing an estimated 300000 barrels of fuel equivalent12 Despite substantial progress in rural elec- trification in recent years 18 or approximately 5000 of 42000 villages are still not electrified Several hundred of these villages are in extremely remote areas with no elec- tricity and no capacity to be connected to the existing elec- trical grid system Some of these villages have small electric generators that use fossil fuels to supply electricity to the village on an intermittent basis

To alleviate a portion of the off-grid electricity needs in the Philippines in 2001 USAID funded a (USD) $95-million project to electrify 160 remote villages in Mindanao prov- ince using a combination of small solar wind and micro- hydro systems As of July 2002 10 villages covering 300 households had been supplied with electricity in the form of solar battery charging stations by Winrock In addition C Trade is implementing the feasibility assessment of a pilot project on the island of Palawan in the Philippines which uses easily replicable small wind turbines and solar panels to power a mini ice plant Many small fishing villages have no refrigeration facilities or reliable sources of electricity to power ice-making equipment The small renewable energy system is also designed to serve as a battery recharging station which allows villagers to extract a fee to charge batteries in the boats used by tourists visiting the nearby caves

In October 2000 Synergy Power Corp installed a wind- solar-diesel hybrid system on the island of Atulayan located 2 km off the coast of Luzon The local utility formed a village cooperative to perform system maintenance and collect revenue from the sale of the electricity and battery charging facilities Once the hybrid system was installed the village had 24-hr power reliability compared to only

four hours per day supplied by backup diesel-powered gen- erators prior to the project13 Shell International Renewables in collaboration with the local government financed a vil- lage mini-grid in the Philippines in late 1999 Shell installed a set of 3-kW photovoltaic modules equipped with 10-kW backup propane generators and a battery bank to power a mini-grid of 80 homes At approximately (USD)$200 per kWh the service was expensive relative to the cost of main- stream grid electricity but nontheless provided a valuable service to the village14

Sri Lanka In 2002 the Sri Lankan govemment and the World Bank funded rural electrification of remote off-grid villages using subsidies designated for distributed generation as part of the Renewable Energy for Rural Economic Development Project in Sri Lanka The project aims to improve the quality of rural life by using off-grid renewable energy technologies to pro- vide electricity in remote areas and promote private sector power generation from renewable energy resources The project

Hybrid system in Pune India using a combination of a 3-kW wind turbine and solar panels

November2004 27

Dr Dayal demonstrates arsquohybrid system for rural electrification in the Philippines The system uses a 30-W flexible solar panel and wind turbine (shown in background)

promotes the solar home system market and expansion to smaller hybrid systems accessible to the poor and suited to community applications such as health clinics schools and public service^^ Under this funding scheme in 2002 Solar Dynamics installed a basic DC electrical power supply us- ing two 60-W solar photovoltaic panels at a cost of approxi- mately (USD)$SOO per solar home system More than 1000 homes in rural villages were electrified in the first year of the program

Another project conducted by C Trade and Southwest Wind Power installed a pilot hybrid power supply using a combina- tion of wind turbines and solar panels designed to electrify Baththalangunduwa a remote island village off the east cen- tral coast of Sri Lanka that had no reliable source of power or water Before the project oil-powered electric generators pro- vided all of the villagersquos power Because oil delivery was sporadic and dependent on shipments by boat the reliability of electric power in the village was poor The introduction of a stand-alone power system provided an immediate solution to this unreliable source of fuel and power supply for water puri- fication basic lighting and telecommunications needs for the families living on the island Small hybrid units were also in- stalled on microwave relay towers used for cell phone com- munications The small wind turbines mounted in the relay tower structure provide significant power to relay transmitter equipment offsetting the power previously derived from oil generators

The Maldives The makeup and geography of the Maldives is similar to that of the Philippines The Maldives is made up of more than 1000 coral islands 200 of which are inhab- ited and 80 supporting tourist resorts The Maldives has no conventional energy resources and depends on imported diesel fuel oil to meet all of its energy needs In 2001 the Maldives had a electricity generating capacity of only 025 million kWIS How- ever as a result of ongoing renew- able energy projects the countryrsquos electricity generation growth rate is estimated to increase by 75 through 2010

The local affinity toward the use of traditional diesel oil-pow- ered generators has contributed t o t h e contaminat ion a n d pollution of these small coral islands-the countryrsquos main

asset for attracting tourism The government of the Maldives recognizes the detrimental effects of existing practices and has sought assistance in developing a renewable energy de- velopment strategy To counter the current local preference for diesel oil in 2002 the World Bank and the Asian Devel- opment Bank cofunded (USD)$lS million for the develop- ment of rural electrification of the Maldives promoting renewable energy through the World Bankrsquos Global Envi- ronment Facility (GEF) Program More recently GEF con- tributed (USD)$750000 to a (USD)$27-million UN project to reduce GHG emissions from fossil fuel activities and promote the use of renewable energy in the Maldives

Indonesia Indonesia has installed electrical generating capacity estimated at 214 gigawatts The majority of the power comes from ther- mal sources (87) with 105 generated from hydropower and 25 from geothermal sources Indonesia faces an electric- ity supply crisis with intermittent blackouts on the main island of Java In addition the archipelago geography of the country further impedes affordability and access to reli- able sources of electricity Because the majority of Indonesiarsquos power production is dependent on fossil fuels the level of Indonesiarsquos carbon emissions per dollar of GDP (Le car- bon intensity) is moderately high compared to its Asian neighbors Between 1980 and 2001 Indonesiarsquos carbon in- tensity grew from 012 to 016 (metric tons of carbon per

thousand $) which was higher than Indiarsquos (009) Japanrsquos ( O l ) and Thailandrsquos (014)16

The Asian Development Bank is now promoting the development of renewable energy using palm oil waste that is generated Indonesia is the second largest producer after Malaysia of palm oil waste in the world More than three million hectares are used for palm oil plantations which sup- ply approximately 300 palm oil mills These palm oil mills produce significant amounts of biomass waste and generate large quantities of wastewater A single mill has the capacity to process 60 tons of palm oil waste per hour and 11000 cubic meters of methane which could be used to provide 15 MW of electricity

India More than 70 of Indiarsquos population lives in rural areas and has limited access to electricity Current electricity generation in In- dia is seriously below peak demand The govemment of India has targeted capacity increases of 100OOO M W over the next 10 years As of January 2002 total installed Indian power generat- ing capacity was 120000 MWI6 Small solar photovoltaic sys- tems have been successfully installed for rural electrification in India Since 1994 more than 9000 remote homes have been provided with DC-based lighting using small solar photovoltaic panels manufactured by Omega Electronics as part of a village eleqtrification program with the support of the Ministry of Non- Conventional Energy Sources in the State of Kerala Indiardquo The distributed generation project uses individual solar home light- ing systems consisting of 600 lumen lights powered from a tubular deep cell battery charged by a solar module providing electricity lighting for three to four hours daily

Because of the countryrsquos heavy reliance on coal carbon emis- sions are rising in India However India is a non-Annex I coun- try under the United Nations Framework Convention on Climate Changersquo and therefore is not obligated to reduce its emissions of carbon or GHGs Nevertheless nongrid areas depend heavily on renewable energy projects India has one of the largest national programs in the developing world to promote the use of solar energy Use of solar power is advocated as a way to pro- vide energy to regions experiencing shortages and in many small villages and remote areas solar photovoltaic systems are far more effective to implement than provide conventional energy though new transmission systems Wind-generated energy is also in wide- spread use throughout India According to the countryrsquos Minis- try of Non-Conventional Energy Sources India will exceed its target of installing 1500 M W of wind power by 2007 Improved grid connections and incentives to wind-power producers have increased the use of wind energy as a reliable power source in recent years Another source of potential renewable energy in India is biomass The country is among the worldrsquos largest pro- ducers of sugar and it uses sugar cane waste for energy during the harvest period

CONCLUSION Renewable energy projects can serve a critical niche in supply- ing much-needed electricity to rural off-grid communities in developing countries and in helping to reduce their reliance on fossil energy However the benefits of using subsidies from carbon credits and carbon trading to sustain these projects are still being studied The potential for applying REC and CER credits to help offset the costs of implementing hybrid projects in developing countries will likely increase with the increased use of renewable energy technologies even if the initial GHG credit revenue is small The expansion of international public and private funding mechanisms will also play a vital role in future development and sustainability of renewable energy projects in developing countries Pilot projects have been used to demonstrate the feasibility of establishing an infrastructure based on renewable energy systems in rural communities throughout the developing world The pilot projects described in this article provide a model for sustainable renewable en- ergy development to displace fossil energy use and help re- duce GHG emissions which is key in finding a solution to the effects of global warming worldwide 0

REFERENCES 1 2

3

4

5

6

The Clean Development Mechanism See httpcdmunfcccint Dayal P Carbon Trading and Sequestration Projects Offer Global Warm- ing Solutions EM 2000 March 15-24 The Edison Electric Institute See httpwwweeiorgindustry_issues environmenticlimateiindex Tradable Renewable Certificates (RECs) See httpcrsZnetihandbook TRC-Handbookhtm ldquoStates Take Lead in Widening Use of Green Energyrdquo The Wall Street Journal September 22 2004 p 6 Blue KN The Role of Renewable Energy Certificates (RECs) in Effective GHG Management Programs Presented at the 7th Annual Electric Utili- ties Environmental Conference Tucson Arizona January 21 2004 Carbon Finance at the World Bank See httpcarbonfinanceorg The Chicago Climate Exchange See httpwwwchicagoclimate exchangecom Levin J The California Climate Action Registry Presented at the 7th Annual Electric Utilities Environmental Conference Tucson Arizona January 22 2004

10 Climate Trust See httpwwNclimatetrustorgaboutushtml 11 International Utility Efficiency Partnership See httpwwwjiorg 12 The Asian Development Bank See httpladborg 13 Renewable Energy Policy Framework Republic of Philippines Department

of Energy and US Department of Energy National Renewable Energy Laboratory June 1999

14 Renewable Energy GEF Partners with Business for a Better World and The World Bank See httpwww wdsworldbankorgservleti

3 5 South Asia Regional Overview Energy Information Agency US Depart- ment of Energy September 2003 See httpwwweiadoegovemeucabs maldiveshtm1

16 Country Analysis Briefi Energy Information Agency US Department of Energy See httpwwwenergygovl

17 Ammini Group of Companies See httpwwwamminicom

7 8

9

November2004 29

Dr Dayal demonstrates arsquohybrid system for rural electrification in the Philippines The system uses a 30-W flexible solar panel and wind turbine (shown in background)

promotes the solar home system market and expansion to smaller hybrid systems accessible to the poor and suited to community applications such as health clinics schools and public service^^ Under this funding scheme in 2002 Solar Dynamics installed a basic DC electrical power supply us- ing two 60-W solar photovoltaic panels at a cost of approxi- mately (USD)$SOO per solar home system More than 1000 homes in rural villages were electrified in the first year of the program

Another project conducted by C Trade and Southwest Wind Power installed a pilot hybrid power supply using a combina- tion of wind turbines and solar panels designed to electrify Baththalangunduwa a remote island village off the east cen- tral coast of Sri Lanka that had no reliable source of power or water Before the project oil-powered electric generators pro- vided all of the villagersquos power Because oil delivery was sporadic and dependent on shipments by boat the reliability of electric power in the village was poor The introduction of a stand-alone power system provided an immediate solution to this unreliable source of fuel and power supply for water puri- fication basic lighting and telecommunications needs for the families living on the island Small hybrid units were also in- stalled on microwave relay towers used for cell phone com- munications The small wind turbines mounted in the relay tower structure provide significant power to relay transmitter equipment offsetting the power previously derived from oil generators

The Maldives The makeup and geography of the Maldives is similar to that of the Philippines The Maldives is made up of more than 1000 coral islands 200 of which are inhab- ited and 80 supporting tourist resorts The Maldives has no conventional energy resources and depends on imported diesel fuel oil to meet all of its energy needs In 2001 the Maldives had a electricity generating capacity of only 025 million kWIS How- ever as a result of ongoing renew- able energy projects the countryrsquos electricity generation growth rate is estimated to increase by 75 through 2010

The local affinity toward the use of traditional diesel oil-pow- ered generators has contributed t o t h e contaminat ion a n d pollution of these small coral islands-the countryrsquos main

asset for attracting tourism The government of the Maldives recognizes the detrimental effects of existing practices and has sought assistance in developing a renewable energy de- velopment strategy To counter the current local preference for diesel oil in 2002 the World Bank and the Asian Devel- opment Bank cofunded (USD)$lS million for the develop- ment of rural electrification of the Maldives promoting renewable energy through the World Bankrsquos Global Envi- ronment Facility (GEF) Program More recently GEF con- tributed (USD)$750000 to a (USD)$27-million UN project to reduce GHG emissions from fossil fuel activities and promote the use of renewable energy in the Maldives

Indonesia Indonesia has installed electrical generating capacity estimated at 214 gigawatts The majority of the power comes from ther- mal sources (87) with 105 generated from hydropower and 25 from geothermal sources Indonesia faces an electric- ity supply crisis with intermittent blackouts on the main island of Java In addition the archipelago geography of the country further impedes affordability and access to reli- able sources of electricity Because the majority of Indonesiarsquos power production is dependent on fossil fuels the level of Indonesiarsquos carbon emissions per dollar of GDP (Le car- bon intensity) is moderately high compared to its Asian neighbors Between 1980 and 2001 Indonesiarsquos carbon in- tensity grew from 012 to 016 (metric tons of carbon per

thousand $) which was higher than Indiarsquos (009) Japanrsquos ( O l ) and Thailandrsquos (014)16

The Asian Development Bank is now promoting the development of renewable energy using palm oil waste that is generated Indonesia is the second largest producer after Malaysia of palm oil waste in the world More than three million hectares are used for palm oil plantations which sup- ply approximately 300 palm oil mills These palm oil mills produce significant amounts of biomass waste and generate large quantities of wastewater A single mill has the capacity to process 60 tons of palm oil waste per hour and 11000 cubic meters of methane which could be used to provide 15 MW of electricity

India More than 70 of Indiarsquos population lives in rural areas and has limited access to electricity Current electricity generation in In- dia is seriously below peak demand The govemment of India has targeted capacity increases of 100OOO M W over the next 10 years As of January 2002 total installed Indian power generat- ing capacity was 120000 MWI6 Small solar photovoltaic sys- tems have been successfully installed for rural electrification in India Since 1994 more than 9000 remote homes have been provided with DC-based lighting using small solar photovoltaic panels manufactured by Omega Electronics as part of a village eleqtrification program with the support of the Ministry of Non- Conventional Energy Sources in the State of Kerala Indiardquo The distributed generation project uses individual solar home light- ing systems consisting of 600 lumen lights powered from a tubular deep cell battery charged by a solar module providing electricity lighting for three to four hours daily

Because of the countryrsquos heavy reliance on coal carbon emis- sions are rising in India However India is a non-Annex I coun- try under the United Nations Framework Convention on Climate Changersquo and therefore is not obligated to reduce its emissions of carbon or GHGs Nevertheless nongrid areas depend heavily on renewable energy projects India has one of the largest national programs in the developing world to promote the use of solar energy Use of solar power is advocated as a way to pro- vide energy to regions experiencing shortages and in many small villages and remote areas solar photovoltaic systems are far more effective to implement than provide conventional energy though new transmission systems Wind-generated energy is also in wide- spread use throughout India According to the countryrsquos Minis- try of Non-Conventional Energy Sources India will exceed its target of installing 1500 M W of wind power by 2007 Improved grid connections and incentives to wind-power producers have increased the use of wind energy as a reliable power source in recent years Another source of potential renewable energy in India is biomass The country is among the worldrsquos largest pro- ducers of sugar and it uses sugar cane waste for energy during the harvest period

CONCLUSION Renewable energy projects can serve a critical niche in supply- ing much-needed electricity to rural off-grid communities in developing countries and in helping to reduce their reliance on fossil energy However the benefits of using subsidies from carbon credits and carbon trading to sustain these projects are still being studied The potential for applying REC and CER credits to help offset the costs of implementing hybrid projects in developing countries will likely increase with the increased use of renewable energy technologies even if the initial GHG credit revenue is small The expansion of international public and private funding mechanisms will also play a vital role in future development and sustainability of renewable energy projects in developing countries Pilot projects have been used to demonstrate the feasibility of establishing an infrastructure based on renewable energy systems in rural communities throughout the developing world The pilot projects described in this article provide a model for sustainable renewable en- ergy development to displace fossil energy use and help re- duce GHG emissions which is key in finding a solution to the effects of global warming worldwide 0

REFERENCES 1 2

3

4

5

6

The Clean Development Mechanism See httpcdmunfcccint Dayal P Carbon Trading and Sequestration Projects Offer Global Warm- ing Solutions EM 2000 March 15-24 The Edison Electric Institute See httpwwweeiorgindustry_issues environmenticlimateiindex Tradable Renewable Certificates (RECs) See httpcrsZnetihandbook TRC-Handbookhtm ldquoStates Take Lead in Widening Use of Green Energyrdquo The Wall Street Journal September 22 2004 p 6 Blue KN The Role of Renewable Energy Certificates (RECs) in Effective GHG Management Programs Presented at the 7th Annual Electric Utili- ties Environmental Conference Tucson Arizona January 21 2004 Carbon Finance at the World Bank See httpcarbonfinanceorg The Chicago Climate Exchange See httpwwwchicagoclimate exchangecom Levin J The California Climate Action Registry Presented at the 7th Annual Electric Utilities Environmental Conference Tucson Arizona January 22 2004

10 Climate Trust See httpwwNclimatetrustorgaboutushtml 11 International Utility Efficiency Partnership See httpwwwjiorg 12 The Asian Development Bank See httpladborg 13 Renewable Energy Policy Framework Republic of Philippines Department

of Energy and US Department of Energy National Renewable Energy Laboratory June 1999

14 Renewable Energy GEF Partners with Business for a Better World and The World Bank See httpwww wdsworldbankorgservleti

3 5 South Asia Regional Overview Energy Information Agency US Depart- ment of Energy September 2003 See httpwwweiadoegovemeucabs maldiveshtm1

16 Country Analysis Briefi Energy Information Agency US Department of Energy See httpwwwenergygovl

17 Ammini Group of Companies See httpwwwamminicom

7 8

9

November2004 29

thousand $) which was higher than Indiarsquos (009) Japanrsquos ( O l ) and Thailandrsquos (014)16

The Asian Development Bank is now promoting the development of renewable energy using palm oil waste that is generated Indonesia is the second largest producer after Malaysia of palm oil waste in the world More than three million hectares are used for palm oil plantations which sup- ply approximately 300 palm oil mills These palm oil mills produce significant amounts of biomass waste and generate large quantities of wastewater A single mill has the capacity to process 60 tons of palm oil waste per hour and 11000 cubic meters of methane which could be used to provide 15 MW of electricity

India More than 70 of Indiarsquos population lives in rural areas and has limited access to electricity Current electricity generation in In- dia is seriously below peak demand The govemment of India has targeted capacity increases of 100OOO M W over the next 10 years As of January 2002 total installed Indian power generat- ing capacity was 120000 MWI6 Small solar photovoltaic sys- tems have been successfully installed for rural electrification in India Since 1994 more than 9000 remote homes have been provided with DC-based lighting using small solar photovoltaic panels manufactured by Omega Electronics as part of a village eleqtrification program with the support of the Ministry of Non- Conventional Energy Sources in the State of Kerala Indiardquo The distributed generation project uses individual solar home light- ing systems consisting of 600 lumen lights powered from a tubular deep cell battery charged by a solar module providing electricity lighting for three to four hours daily

Because of the countryrsquos heavy reliance on coal carbon emis- sions are rising in India However India is a non-Annex I coun- try under the United Nations Framework Convention on Climate Changersquo and therefore is not obligated to reduce its emissions of carbon or GHGs Nevertheless nongrid areas depend heavily on renewable energy projects India has one of the largest national programs in the developing world to promote the use of solar energy Use of solar power is advocated as a way to pro- vide energy to regions experiencing shortages and in many small villages and remote areas solar photovoltaic systems are far more effective to implement than provide conventional energy though new transmission systems Wind-generated energy is also in wide- spread use throughout India According to the countryrsquos Minis- try of Non-Conventional Energy Sources India will exceed its target of installing 1500 M W of wind power by 2007 Improved grid connections and incentives to wind-power producers have increased the use of wind energy as a reliable power source in recent years Another source of potential renewable energy in India is biomass The country is among the worldrsquos largest pro- ducers of sugar and it uses sugar cane waste for energy during the harvest period

CONCLUSION Renewable energy projects can serve a critical niche in supply- ing much-needed electricity to rural off-grid communities in developing countries and in helping to reduce their reliance on fossil energy However the benefits of using subsidies from carbon credits and carbon trading to sustain these projects are still being studied The potential for applying REC and CER credits to help offset the costs of implementing hybrid projects in developing countries will likely increase with the increased use of renewable energy technologies even if the initial GHG credit revenue is small The expansion of international public and private funding mechanisms will also play a vital role in future development and sustainability of renewable energy projects in developing countries Pilot projects have been used to demonstrate the feasibility of establishing an infrastructure based on renewable energy systems in rural communities throughout the developing world The pilot projects described in this article provide a model for sustainable renewable en- ergy development to displace fossil energy use and help re- duce GHG emissions which is key in finding a solution to the effects of global warming worldwide 0

REFERENCES 1 2

3

4

5

6

The Clean Development Mechanism See httpcdmunfcccint Dayal P Carbon Trading and Sequestration Projects Offer Global Warm- ing Solutions EM 2000 March 15-24 The Edison Electric Institute See httpwwweeiorgindustry_issues environmenticlimateiindex Tradable Renewable Certificates (RECs) See httpcrsZnetihandbook TRC-Handbookhtm ldquoStates Take Lead in Widening Use of Green Energyrdquo The Wall Street Journal September 22 2004 p 6 Blue KN The Role of Renewable Energy Certificates (RECs) in Effective GHG Management Programs Presented at the 7th Annual Electric Utili- ties Environmental Conference Tucson Arizona January 21 2004 Carbon Finance at the World Bank See httpcarbonfinanceorg The Chicago Climate Exchange See httpwwwchicagoclimate exchangecom Levin J The California Climate Action Registry Presented at the 7th Annual Electric Utilities Environmental Conference Tucson Arizona January 22 2004

10 Climate Trust See httpwwNclimatetrustorgaboutushtml 11 International Utility Efficiency Partnership See httpwwwjiorg 12 The Asian Development Bank See httpladborg 13 Renewable Energy Policy Framework Republic of Philippines Department

of Energy and US Department of Energy National Renewable Energy Laboratory June 1999

14 Renewable Energy GEF Partners with Business for a Better World and The World Bank See httpwww wdsworldbankorgservleti

3 5 South Asia Regional Overview Energy Information Agency US Depart- ment of Energy September 2003 See httpwwweiadoegovemeucabs maldiveshtm1

16 Country Analysis Briefi Energy Information Agency US Department of Energy See httpwwwenergygovl

17 Ammini Group of Companies See httpwwwamminicom

7 8

9

November2004 29