Best Practises of the Alliance for Rural Electrification

2011 edition

2011 Edition

Best practises of the Alliance for Rural Electrifi cation

what renewable energy can achieve in developing countries

Alliance forRuralElectrif cation

I N T R O D U C T I O N

The challengeIn 2010, 130 years after Thomas Edison patented a system for electricity distribution, more than 1.4 billion people do not have access to modern energy services.1 In Sub-Saharan Africa, only 31% of the population has access to electricity, with only 2-5% in many rural areas. Electrical in-frastructure remains largely centralised; yet grid extensions to remote regions is far too expensive as populations are dispersed and cannot afford to finance the connection fees upfront.

Although most developing countries have initiated and/or accelerated rural electrification pro-grammes, progress has often been hampered while not living up to political promises. Without substantial political drive to enhance the living standards of rural areas, progress will remain stifled. In fact, despite the needs, political support is limited. The financial and technical capac-ity needed to implement large-scale operations is also sincerely lacking as utilities have limited motivation to extend services to unprofitable customers. The International Energy Agency (IEA) estimates that developing and transition countries together have investment requirements in their energy sectors of US$9.6 trillion in the period 2001 to 2030. On current growth and development assistance trajectories, this figure is insurmountable. Hence, it is vital that the limited financial resources that are available are used in the most effective way and propagate private investment.

Renewable EnergiesThe Alliance for Rural Electrification (ARE) represents companies and organisations who share the view that rural communities in developing countries and have an alternative to traditional electrification and conventional energies. We believe that renewable energy technologies, uti-lised in off-grid and mini-grid power systems, can sustainably meet the energy needs of rural communities at an affordable price.

For decades, accessing electricity in developing countries has been fostered through the use of fossil fuels (gensets) and by means of extending the electricity grid.

Due to low potential electricity demand and economic development in these areas, grid exten-sion is often not a cost competitive option. A study of the World Bank on rural electrification programs placed the average cost of grid extension per km at between $8,000 and $10,000, rising to around $22,000 in difficult terrains. Many projects have demonstrated that decentral-ised renewables are a more reliable electricity resource than grid connectivity due to the over-stretched and unreliable capacity of central systems.

The volatility of oil prices and both local and global environmental constraints, together with rising world fossil fuel demand calls into serious question the sustainability of gensets and in-creases the need to find alternative, efficient energy solutions. Furthermore, the elevated opera-tion and maintenance costs, the geographical difficulties of fuel delivery, and the environmental and noise pollution present further disadvantages to the exclusive use of diesel-based systems.

In contrast, the low operation and maintenance costs of renewable energy power systems offset the initial capital costs, which makes them more efficient and cost competitive solutions. Re-newable solutions offer energy independence and security as well as the inherent environmental benefits of using clean and sustainable solutions.

1 All figures are from the International Energy Agency’s 2010 World Outlook Report

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Another central issue is the role of the private sector. ARE believes that private companies can become a key driver in the fi eld of rural electrifi cation. Many companies have now demonstrated their capabilities by implementing successful rural renewable energy projects throughout the world. However, a crucial precondition is an enabling legal and fi nancial framework.

The renewable energy industry grows increasingly interested in opportunities within developing countries. ARE is the visible expression of this trend, serving as an international platform for shar-ing the knowledge and experience of the private sector. It develops technological and fi nancial solutions which are made available for policy makers and other actors in the fi eld of rural electrifi -cation. Development policy is increasingly discovering the benefi ts of renewable technologies and acknowledging that the private sector has an important role to play. Now this has to be translated into concrete policies, which boost private sector driven off-grid renewable rural electrifi cation.

Our Best PractisesThis publication highlights case studies from our members that demonstrate their activities in the fi eld and exhibit replicable solutions. These examples cover a wide range of technologies, geographical locations, fi nancial support mechanisms, and consumer tariff schemes.

These projects show the diversity and the potential of renewable energy solutions in developing countries. Reliable, cost effective and sustainable energy solutions exist and are being imple-mented every day worldwide. Access to energy is a prerequisite for development, not a result. Renewables can provide enough sustainable, reliable, clean electricity to support the creation of local business in large population areas, whilst also being able to reach the most dispersed rural communities. Renewables can also provide unlimited solutions for accessing the water needed for irrigation and sanitation, in places that have consistently been deprived of this right, and at the same time, offer new opportunities for public health and education. Today, when the right conditions are put in place, the technology to provide energy for everyone exists. When renewable energy technologies are politically supported they can reach people faster and achieve more than any other technology or master plan, in addition to preserving the current state of our ecosystem.

This brochure not only highlights successful projects, but demonstrates what can be achieved.

Origin countries of ARE members

Countries where the case studies have been realised

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Page 4 Bergey Wind Power: Delivering small wind turbines to 20 households in Tibet, China

Page 5 Eauxwell Nigeria Limited: Solar water pumping supplies potable water to 653 communities across Nigeria

Page 6 Fondazione Madre Agnese Manzoni: Lights in every household in the Democratic Republic of the Congo

Page 7 FortisWind Energy: Small wind turbines powers telecommunications in Madagascar

Page 8 Fraunhofer Institute for Solar Energy ISE: PV system technology in Ecuador and Peru

Page 9 Innovation, Energy, Development (IED): GEOSIM: A GIS based tool for rural electrification maximizes impact on socio-economic development in 12 Asian and African countries

Page 10 KXN: 551 PV refrigerators for healthcare in Nigeria

Page 11 Outback Power: Delivering solar energy to Apolima community in Samoa

Page 12 Phaesun GmbH: Rural Electrification in Mozambique

Page 13 Q-Cells: Solar energy schools in Rema, Ethiopia

Page 14 Renac: Project TREE (Transfer Renewable Energy & Efficiency) - Capacity buildings for renewable energy and energy efficiency technologies in developing countries

Page 15 Rural Energy Foundation (REF): Electricity for 500,000 through Solar. Now! Network

Page 16 SMA Solar Technology: Largest RE hybrid system on Vaitupu, Tuvalu

Page 17 Solarmate: Solar Power for an African Mission Station in Nigeria

Page 18 SolarWorld: 7000 homes receive clean PV-based renewable energy in China

Page 19 Sunlabob: Solar Lanterns for 1200 homes in Lao PDR

Page 20 Trama TecnoAmbiantal: PV hybrid energy powers a village of 19 homes in Ecuador

Page 21 The Wind Factory: Installation of a Wind-diesel Hybrid system in Ilakaka, Madagascar

T A B L E O F C O N T E N T S

4

The ChallengeNaqu is a high-altitude county located in the north of Tibet plateau, 4,200 meters above the sea level. Households there are scattered and facing limited access to electricity due to unfeasible grid extension and low energy demands.

Opportunities for RenewablesThis region of Tibet has excellent renewable energy (RE) resources. The annual average wind speed there is 5.1m/s at 10m above the surface of the earth and the annual solar radiation quantity is over 6600 MJ/m2. Local government takes RE as a solu-tion for electrifi cation.

Renewable SolutionAfter assessment, a wind/solar hybrid power station of 15 kW wind system (10kW out of BBWC XL.10) and 5kW solar was developed. This hybrid system could produce ~80 kWh of electricity per day. It is a pilot project and more and more RE power station will be established in the foreseeable future.

Project financingThis project was co-fi nanced by Chinese Ministry of Science and Technology and Department of Science and Technology in Tibet. Tibet Solar Energy Research Institute is the local partner. The total investment is about RMB 2.3 million. As an assistance project, there is no need for villagers to pay their bill for the electrical service.

Project OutcomeFeedback from villagers and the local government demonstrated their complete satisfaction with the project. Through clean and reliably electricity, the living conditions of households have been improved. Electrifi cation enables about 80 people to get light-ing, telecom and entertainment services. To ensure the sustainability of this project, some users have been trained to maintain these equipments.

Delivering small wind turbines to 20 households in Tibet, China

Company DescriptionBergey Windpower Company (BWC), which is the world leading supplier of small wind turbines up to 50 kW, was established in Norman, Okla-homa, USA in 1977. As a subsidi-ary of BWC, Beijing Bergey Wind-power Co., (BBWC) has become the production and R&D base of BWC in China.

BWC/BBWC provides complete design, supply, and installation services for hybrid power system uti-lizing wind turbines, diesel generators and photo-

Cont

act: Haijiang Wang

[email protected]

Bergey Wind Power

Wind power supply for a village in Naqu,Tibet.

voltaic arrays. Bergey wind turbines have now been installed in all 50 U.S. states and more than 100 countries.

The Challenge

Cont

act: Enwegbara Edwin C.

Tel. [email protected] l l N ige r ia L im i ted

5

Installation prior to commissioning.

Lack of access to clean water is a predominant problem in many parts of rural Nigeria, compounded by the fact that grid electricity is lacking in many of such areas. The Government has previously installed water-pumping systems based on generators, but these have failed due to extremely high maintenance costs and unreliable components (generating sets).

Opportunities for RenewablesThe rural locations generally do not have access to the grid network. Large open areas in rural Nigeria with high irradiation present an opportunity for PV and wind power.

Renewable SolutionEauxwell drilled new boreholes and retro-fi tted to install all the required components. Within each borehole, the Grundfos SQFlex submersible pumps (DC-AC pumps) is installed.

Grundfos SQFlex submersible water pumps1. 16 No’s Sharp 95Wp PV modules

– Northern locations2. 12 No’s SolarWorld 80Wp PV modules

– Southern locations3. Aqualite or Ferrolite Water Treatment Plants

dependent on water quality in region4. Elevated water storage tanks5. Water management and supply station

In order to ensure that each installation is utilised

properly, a local technician is hired and trained by Eauxwell Nigeria Ltd to operate and carry out minimal maintenance. Periodical maintenance and monitoring will be carried out.

Project financingProjects are funded by the Conditional Grant Scheme in Nigeria, a counterpart fund between Nigerian Federal and State Governments setup to meet the Millennium Development Goals. Projects are conducted in partnership with the United Na-tions.

Project OutcomeUp to 500 people visit each site daily with repeated visits. Some of the greatest successes are increased educational opportunities as more children have time go to school because potable water exists with-in range of their homes; they do not have to walk long distances to obtain water daily. There is also a huge decline in diseases such as cholera and dys-entery in those communities. People have a better quality of life and thus better their societies.

Solar water pumping supplies potable water to 653 communities across Nigeria

Company DescriptionEauxwell Nigeria Limited, established in 1987, is the leading water and waste-water engineering fi rm in Nigeria. In striving to improve access to potable water in rural communities, Eauxwell has invested year after year in off-grid renewable energy solutions. Our wealth of experience utilizing renewable energy means we are now engaged in several rural electrifi cation projects in conjunction with numerous local and international partners.

The Challenge

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In the largest part of the territory, it is almost impossible to access lighting for households. The sun sets from 18.00 pm and rises around 5.30 am, thus most of the population is spending nearly half its day in the deepest darkness; the resulting consequences are negative impacts on their quality of life, family life, security, professional activities, education etc.

Opportunities for RenewablesIn rural areas, access to diesel is very scarce, thus photovoltaics represent a real opportunity to devel-op and deliver a manageable source of electricity.

Renewable SolutionA central shop managed by a trained worker was in-stalled in each village in the Kimbondo area. Every shop is equipped with solar panels (with a power capac-ity between 200 and 500 Wp), power electronics, an inverter, a battery (with a capacity between 50 and 250 Ah), and a battery charger with a current output of DC 12 V, AC 230. The shop serves various purposes: it can power a small refrigerator for vaccines, an emergency telecommunication system and at the same time, re-charge the lanterns that have been supplied at house-holds. The lanterns are equipped with LEDs, which of-fer long life, are resistant to shocks, have a lower energy consumption, and good light output per watt.

Project financingThe fi rst two phases of the project focus on the train-

ing of the local technicians (to install and maintain a PV systems as well as in sales), the installation of the different systems, and the distributions of the lamps, which are fully supported by the Founda-tion. The third phase and the continuation of the project in the long run (maintenance and sales com-ponents) are fi nanced by the users, who will pay to the technicians each battery recharge and the replacement or the repair of any component. More-over, each charging station is designed as a shop dedicated to the sale of PV components and acces-sories with the aim of expanding to other villages without electricity.

Project Outcome8 small rural communities/villages can benefi t from this project, which will total around 1008 house-holds or almost 8,000 people. The training courses designed for the technicians are on-going and will continue. In the fi rst year, it is expected that the number of people that will benefi t from this project directly or indirectly will be as high as 26,000 peo-ple. This number could increase dramatically thanks to the process launched.

Lights for every household in Congo, DRC

Company DescriptionThe “Fondazione Madre Agnese Manzoni“ is a non-profi t, recognized by the Ital-ian Government that develops solidarity projects. They conceive, realize, and take part in development projects in the fi elds of: social and sanitary welfare, instruction and professional train-ing, protection and valorisation of nature and the

Cont

act: Prof. Ing. Giovanni Chersola

[email protected]

Fondazione Madre Agnese Manzoni

Young mothers receiving lanterns for their homes.

environment, technical projects in the fi eld of en-ergy and renewable energies, water collection and distribution, sewage techniques, food, and water safety etc.

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Fortis Alize in Madagascar.

The ChallengeMadagascar’s electricity supply is mainly based on diesel generators. Since they are re-motely located, the operational costs are high. Also, the local population does not have the capacity to invest in renewables. An alterna-tive route is needed.

Opportunities for RenewablesSmall wind has high performance in a windy coun-try such as Madagascar. This means that in hybrid combination with a diesel genset and a small bat-tery bank, up to 95% of the diesel costs are saved.

Renewable SolutionThe project’s purpose is to supply our turbines to the national telecom industry to power GSM anten-nas. The hybrid systems we install are based on a Fortis Alize wind turbine (10kW), a battery bank and the existing diesel generator.

In some locations, solar PV is added. The greatest challenge is making these projects sustainable. This means that in addition to technical solutions, train-ing the benefi ciaries is needed, along with a local service network and continued maintenance.

Project financingThe commercial telecom provider and the Dutch government fi nanced the infrastructure, capacity building, and sales for the turbines.

Project OutcomeIt is now relatively cheap to install turbines and to sell the electricity to rural communities with the fi nancing received. Even at some locations where there is a surplus of electricity at a GSM pole, the excess can be sold by battery charging for the com-munity at lower prices.

The lesson which can be drawn from this project is not to work from the beginning with the bottom of the pyramid, but somewhere in the middle where normal commercial operation is possible. Then it is possible to work with the base from there.

Small wind turbines powers telecommunications in Madagascar

Company DescriptionFortis Wind Energy is a manufacturer of small wind turbines in the Netherlands. The products range from 1-10 kW and are maintenance free, which makes them ideal for off grid locations.

Cont

act: Mr. Johan Kuikman

+31(0) 152 190 [email protected]

Fo r t i s Wind Ene rgy

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The ChallengeThe fi nancing of “off-grid” renewable energy technologies (RET) remains a challenge. Financing instruments such as the “Feed-in Tarriff (FiT)” regulation in Ecuador would provide a “long-term” solution for RET projects, yet the institutional framework along with technical issues on measurement and monitoring makes the benefi t of FiT impractical. Technical solutions would certainly support this regulation and scale-up not only RETs, but also their benefi ts in local rural communities.

Opportunities for RenewablesToday’s practices in RETs for off-grid systems in Lat-in America are quite well known. In order to scale-up the successful experiences, it is necessary to bring forward energy policies, legislation and market conditions. At the local level, supporting the new stakeholders and especially the “village” system op-erators, which are the turn key to provide long-term solutions of energy services is essential.

Renewable SolutionStand-alone PV systems, such as Solar Home Systems (SHSs) and PV-lighting, hybrid PV systems, PV backup systems (grid-connected).

Project financingThe project DOSBE “Development of Electricity Service Operators in Ecuador and Peru” was co-fi -nanced under the COOPENER action of the Intel-ligent Energy Europe Programme.

Project OutcomeWithin the project, 3 main guidelines have been de-veloped:

1. Service models2. Technical specifi cations for photovoltaic, wind and hydropower systems3. Basic methodology for economic evaluation: www.dosbe.org

PV system technology in Ecuador and Peru

Company DescriptionThe group “Off-Grid Power Supply” at the Fraunhofer Institute for Solar En-ergy Systems ISE has experience on design and evaluation of numerous Hy-brid PV systems worldwide, principally on cost-effective and reliable solutions (small PV appliances, Hybrid PV systems) to sup-ply remote houses, villages, water desalination sys-tems, etc.

Furthermore, the group develops system compo-nents like inverters or charge controllers, energy management systems that have been developed and transferred to industry and fi eld applications.

Cont

act: Brisa Ortiz

+49 (0) 761/[email protected]

Fraunhofer Institute for Solar Energy ISE

Stand-alone PV system in Ecuador.

The “Off-Grid Power Supply” team takes into ac-count other legal, social and economic aspects of rural electrifi cation such as fi nancing instruments and local operation models. The strength lies in the combination of knowledge gained during more than twenty fi ve years of applied research and develop-ment, and practical experience obtained on site worldwide.

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GEOSIM tool

Opportunities for RenewablesIntegrating renewable energy (RE) is a key fac-tor for optimizing investments and maximizing the socio-economic impact of rural electrifi cation projects, but remains very demanding regarding optimization. The identifi cation of viable projects for private investors is a main issue to foster the development of renewables for rural electrifi ca-tion.

Renewable SolutionThe GEOSIM tool, using proven technologies, deals with various RE energy supply options, mini-hydro and biomass technologies (biogas, gasifi cation, co-generation) as well as with grid extension and

solar options – both stand alone SHS and PV die-sel hybrid mini-grids. Options are studied either in isolated mode or grid integrated mode depending on grid proximity and national regulation laws. In-dicators for each “project” are calculated, such as kWh cost, investment costs, yearly maintenance and investment expansion requirements.

Project financingGEOSIM was developed by IED and used in various projects in already 12 countries. To mention a few, 2 projects are currently on-going:

1. Madagascar: Development of regional electrifi ca-tion plans (ADER Rural Electrifi cation Develop-ment Agency),

2. Cambodia: Development of Sustainable Ru-ral Electrifi cation Plans for Cambodia (SREP) combining grid extension scenarios with local renewable energy production, leading on a few renewable energy feasibility studies (Ministry of Industry, Mines and Energy of Cambodia).

Project OutcomeThe GEOSIM tool is transferred to national institu-tions in charge of rural electrifi cation by delivering a user-friendly tool (that requires little specifi c and technical knowledge) and includes a strong capac-ity building phase through training sessions. A list of viable projects were identifi ed for RE potential in Cambodia and in 4 regions in Madagascar. www.geosim.fr

Company DescriptionIncorporated in 1988; IED is an independent French consulting and engineering fi rm, active in the power sector in more than 30 countries across Asia, Africa and Europe.

The ChallengeAs renewable energy (RE) implementation phase occurs a few years after the study phase, the collected data and results become consequently obsolete; updating the results of the “paper study” is diffi cult with national planning resources. The challenge lies in de-veloping national capacity and providing the planning authorities with a tool that is easy to update and provides the fl exibility to run a number of scenarios.

GEOSIM: A GIS based tool for rural electrifi cation maximizes impact on socio-economic development in already 12 Asian and African countries

Cont

act: Anjali Shanker

Tel. +33 [email protected]

I nnova t i on , Ene rg ie , Déve loppemen t ( I ED )IED

10

The ChallengeKebbi State has a population of 3,630,931 (2005 census), with 617,598 under 5 yrs and infant mortality 120/1000 live births. Due to the lack of electricity, providing immunizations for infants against infectious and tropical diseases is diffi cult. KXN recognized that PV can power these refrig-erators in order to save lives.

Opportunities for RenewablesHigh radiation, seasonal roads, unreliable fuel sup-plies and hard-to-reach areas make PV a suitable technology for the area. There is a critical need for highly reliable electricity in order to ensure the in-tegrity of the cold chain right up to the point of use. Also, PV-powered water pumping, cyber-cafes, street lighting etc. Installing and commissioning PV vaccine fridges at mostly remote off-grid sites are necessary to support routine immunization. Howev-er, maintaining system performance – technological and human factors are important.

Renewable SolutionSun Frost RFVB-134a vaccine refrigerators each pow-ered by one Kyocera KC125GT-1, 125Wp, polycrystal-line or 2 Unisolar US-64, 64Wp, thin-fi lm modules,

two Trojan T-105, 6V, 225Ah (C20) fl ooded batteries, with Phocos CML10-2 controllers.

Project financingThe project was fi nanced through a government sub-contract.

Project OutcomeSince the project’s completion: The number of infants served per refrigerator is now 1,200. The refrigerators supply remote areas with quality antigens, preserves the integrity of the an-tigens, reduces walking distance to healthcare fa-cilities, and addresses the millennium development goals (MDGs) 4 and 5. Further work will include user and technician training, long term systems maintenance and performance monitoring.

551 PV refrigerators for healthcare in Nigeria

Company Description

KXN was established in 1999. It is a photovoltaic systems integrator engaged in supply, training, installation, mainte-nance and performance moni-toring.

Cont

act: Anthony O. Ighodaro

Tel. [email protected]

KXN

En-route, by camel, between Dakingari and Giro in Suru Local Government Area (LGA), Kebbi State, Nigeria, with 2 photovoltaic vaccine refrigerator systems.

The Challenge

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Hot and humid conditions combined with salt air have been the death of numerous stand-alone solar power systems on islands in the South Pacifi c and the Caribbean. Apolima is especially susceptible to conditions that are very harsh on equipment. Therefore, reliability, durability, and the ability to service remotely were major considerations when designing the system.

Opportunities for RenewablesIn the 1980s, the Samoa Electric Power Corpora-tion (EPC) brought power to the island with a small diesel generator. Yet the electricity supply faced a number of problems, such as lack of 24-hour avail-ability. Additionally, operation was ineffi cient, re-quiring a high level of technical services and often resulting in loss of power. EPC also struggled to pro-vide an operator to maintain the generator and the transport of diesel fuel was expensive.

In 2005, EPC considered solar as its primary source of power. Therefore, EPC could have a nearly auto-mated power system that did not require diffi cult fuel delivery and could offer energy 24/7.

Renewable SolutionThe design includes protection against the environ-mental problems and built-in redundancy to avoid total system failure should there be a component fault. The mini-grid system uses the distribution network that was installed for the diesel generator. The PV design con-

sists of 84 x 160W Module confi gured with a total of 13.76 kWp. The modules charge a battery bank and 4 Outback controllers provide for their optimal. 5 sealed OutBack inverters provide 11.5 kW of 240VAC output from the 48VDC input. The system design includes ap-proximately 50% over capacity relative to the current load to allow for load growth.

Project financingUNDP, the Samoa Multi Country Offi ce (MCO) and UNESCO provided technical assistance and funding for the feasibility study, system design and specifi -cations, installation supervision, and training. The hardware and civil works for the PV system was fi nanced by the Government of Samoa as part of EPC’s community service obligations.

Project OutcomeThe project has been operational since November 2006, providing reliable power to the community via the pre-existing mini-grid for almost three years with no power interruptions or fl uctuations.

Delivering solar energy to Apolima community in Samoa

Company DescriptionOutBack Power Systems is a leading designer and manufacturer of power electronics for renewable energy ap-plications including solar, wind, and micro-hydro as well as backup power and mobile power applications. Out-Back has established itself as the product of choice in harsh environmental conditions, such as tropical

Cont

act: Andrew Wilson

[email protected]

Solar PV system overlooking Apolima village.

maritime environments with high humidity and salt laden air.

Outback Power

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The ChallengeMozambique lacks basic electrical services. Kerosene is the most common use of lighting, and as a result, health problems are rampant. In order to install PV, a local network of PV entrepreneurs has to be developed, along with capacity building. This requires knowledge transfer at trainings and in local universities.

Opportunities for RenewablesVery low electrifi cation rate in rural areas and abun-dant solar energy, with an average radiation of 5.5 KWh/m2 day.

Renewable SolutionSundaya Ulitium Pico PV systems consist of highly ef-fi cient LED lamps with integrated lithium battery and electronics and solar modules. The local Solar Shops and Solar Kiosks sell the lamps, and provide capacity building by training electricians for maintenance and providing lectures for students.

Project financing50% of the investment costs are covered by Phae-sun GmbH and Sonnenplus GmbH. The other 50% by the Deutsche Investitions- und Entwicklungsges-ellschaft (DEG).

Project Outcome• Provision of bright, clean, safe and reliable elec-

tric lighting, facilitating evening activities such as school studies, village meetings and shop opening.

• Provision of clean energy to power radio/cassettes by day or night thereby improving the quality of life and general information level.

• Healthier living environment through reduction in kerosene usage and dry cell battery.

• Creation of working places for the population in the rural areas of Mozambique.

• The overall investment lead to a profi table return.

Rural Electrifi cation in Mozambique

Company DescriptionThe Phaesun GmbH from Memmigen, Germany was founded in 2001 and con-centrates on the sales, the service and the installation of off-grid solar power and wind energy systems. As one of the lead-ing system integrators for stand alone so-lutions, Phaesun offers all the important brands of the off-grid solar and wind energy market. The com-pany has branch offi ces in Eritrea, France, U.A.E. and Panama and has an extensive worldwide partner and distribution network. Besides sales and instal-

Cont

act: Mr. Tobias Zwirner

+49 (0) 8331 990 [email protected]

Phaesun GmbH

Sundaya Ulitium Pico Lamp installation.

lation, Phaesun is focusing on the project manage-ment, the technical support and the on-site training of its customers. Phaesun has a lot of experience in rural electrifi cation, solar pumping systems, PV telecommunication systems and others.

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Students during outdoor measurements at Solar Energy School in Rema.

The ChallengeLess than 1% of the rural population in Ethio-pia has access to electricity. Key issues for the progress of the rural electrifi cation are training of technicians and the assistance of local installers. This is vital to ensure that the systems are properly maintained and consum-ers are educated how to use the electricity ef-fectively.

Opportunities for RenewablesThe large amount of solar irradiation in Ethiopia makes this country very attractive for the intro-duction of renewable energies based on the natu-ral resource of the sun. Thus, local photovoltaic systems are an ideal extension of the electricity infrastructure in this country, where long distance grids have not reached rural areas.

Renewable SolutionThe International Solar Energy School in Rema, founded by the “Stiftung Solarenergie – Solar Ener-gy Foundation”, has been training local technicians in the fi eld of photovoltaic systems in rural areas since 2007. The course has 3 modules: Solar tech-nique, management and practice. Q-Cells supports this project with manpower and equipment. Com-pany engineers regularly travel to Rema with solar

cells, measuring equipment, cables, soldering irons and plenty of visual aids to successfully explain the fundamentals of photovoltaic electricity generation in theoretical and practical classes.

Project financingThe project is fi nanced by the organization “Stiftung Solarenergie – Solar Energy Foundation”, which is funded by various private and public persons, com-panies and foundations.

Project OutcomeSince the beginning of the project, 62 rural so-lar energy technicians have been educated at the school in Rema. After fi nishing their training, they work in Solar-Centres throughout the country, where they install and service small roof-top systems and also provide fi nancial assistance. The installed solar home systems offer a simple form of development: they allow people to read, sew, cook, draw and lis-ten to the radio once the sun has gone down.

Company DescriptionQ-Cells SE is a leading manufacturer of solar cells located in Germany. It was founded in 1999 and has grown into one of the largest solar cell manu-facturers in the world. Last year Q-Cells entered a new phase, extending its expertise in manufacturing solar cells towards the assembly of powerful crystal-line modules, development of various thin-fi lm tech-nologies, and even offering complete solar systems. In short, the company is developing photovoltaics as a sustainable, green technology for a better future.

Solar energy schools in Rema, Ethiopia

Cont

act: Ina von Spies

+49 (3494) 6699 – [email protected]

Q-Ce l l s

14

The ChallengeOne of the important prerequisites for sustainable implementation of renewables as well as regional value creation is the availability of skilled local personal at all stages of the project cycle. Many de-veloping countries lack the necessary fi nancial means and know-how to train specialized staff.

Opportunities for RenewablesTREE supports capacity building and offers strategy planning seminars for people working in ministries, industry associations, law fi rms, and NGOs in the 115 target countries. TREE also offers seminars on Concentrating Solar Power (CSP) and Financing Renewable Energy Projects addressed to decision makers and engineers from public authorities and industry as well as project developers and fi nanc-ing institutions. TREE seminars are held both at RENAC Training Center in Berlin and in selected partner countries throughout the world. TREE pro-motes the acquisition and dissemination of know-how on renewables and energy effi ciency both at a technical and a non-technical level.

Renewable SolutionThe educational concept of TREE is multidimensional. The project also offers online seminars and follow-up advice, so participants have the possibility to deepen their knowledge individually after attending seminars. TREE Alumni also stay in touch through the TREE in-tranet. There they can exchange ideas, problems, and

solutions from each other. Also included are a series of publications on legal aspects of strategy development for ministry employees as well as a transportable exhi-bition on renewable energy technologies.

Project financingTREE is supported by the International Climate Ini-tiative of the German Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), and was recognized by the UN Decade of Education for Sustainable Development.

Project OutcomeIn 2008/2009, 560 participants from 14 different countries participated in the seminars. In 2010, 450 decision makers from 115 countries are ex-pected to take part. Evaluation of the fi rst TREE project in 2008/2009 shows that many participants implemented their own EE and RE projects in their countries, conducted seminars or used the knowl-edge gained for the elaboration of strategies and road maps for renewables in ministries, and other public authorities.

Project TREE - (Transfer Renewable Energy & Effi ciency) Capacity buildings for renewable energy and energy effi ciency technologies in developing countries

Company DescriptionThe Renewables Academy AG (RENAC) based in Ber-lin, Germany is one of the leading international provid-ers of education and training in the fi elds of renewable energy and energy effi ciency. RENAC has its own train-ing centers in Berlin and Mexico for hands-on train-

Cont

act: Mrs. Tina Völker

+49 30 52 689 58 [email protected]

RENAC

TREE Seminar 2010.

ing in photovoltaics, solar thermal energy, energy effi -ciency, and wind energy. For seminars abroad, RENAC has a mobile Training Center, with which training for photovoltaic, solar thermal, and wind energy technolo-gies can be undertaken on locations worldwide.

15

Cont

act: Willem Nolens

+31 626 696 [email protected]

The ChallengeIn 2010, most African rural households lack access to modern energy. Even though attractive and low-cost renewable energy solutions have been developed, these solutions are hardly available in rural areas as entrepreneurs lack the technical skills and capacity to start or expand a renewable energy business. The public is hardly aware of the benefi ts and many households do not have the cash to make the up-front investment. The challenge is to build a sustainable supply chain, boost awareness and improve affordability. This way, millions of households can reduce their energy expenses and accelerate their development.

Opportunities for RenewablesSolar home systems, pico hydro systems, house-hold biogas systems, improved cook stoves, si-phon water fi lters and LED lighting can be sold and serviced by local entrepreneurs, reducing de-pendency on subsidies. This represents a great opportunity for households to reduce their energy expenses, increase productivity and their living conditions.

Renewable SolutionREF coaches, supports, and fi nances entrepreneurs, their technicians, and sales staff, which creates sustainable supply chains. Awareness is boosted by large-scale marketing campaigns and local village demonstrations. Finally, as soon as supply and de-

mand start to develop, REF implements credit and carbon schemes thereby improving the affordability of the products.

Project financingThe Solar.Now! program is fi nanced by the Dutch Ministry of Foreign Affairs, DOEN Foundation and private donors. The funds are employed where the impact is highest against the lowest-possible costs. Overhead costs have been consistently be-low 8%.

Project OutcomeSince 2007, REF facilitated access to electricity to 500,000 people at a cost of less than EUR 4 per connected person.

Rura l Ene rgy Founda t i on (REF )

Electricity for 500,000 through Solar.Now! Network

Company DescriptionREF facilitates access to renewable energy to thousands in sub-Saharan Africa through market development. The focus is on effectively reducing the three main barriers to sustain-able growth: a lack of availability, low awareness and limited affordability. REF was founded in 2003 and cur-rently has teams on the ground in Burkina Faso, Ethiopia, Mali, Mozambique, Senegal, Tanzania, Uganda and Zambia.

An entrepreneur starting his solar energy business as part of the Solar.Now! network.

In 2010, REF won the EU Sustainable Ener-gy Award and the 2010 International Ashden Awards.

The Challenge

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The Motufoua Secondary School is home to 600 children and consists of classrooms and dormitories for boys and girls, as well as a large kitchen, dining hall, and showering facilities where 24/7 electric-ity was desperately needed. At the request of the Tuvaluan government (Ministry of Public Utilities, Energy and Industries) for a 46kW battery based and grid paralleled PV system for the school, the larg-est hybrid system based on renewable energy in the Pacifi c Region was installed and commissioned.

Opportunities for RenewablesThe Secretariat of the Pacifi c Regional Environment Programme (SPREP) and the International Union for Conservation of Nature (IUCN - Oceania) audited the school to determine the need of a 46kWp PV system and a battery system that supplies 200kWh per day.

Renewable SolutionThe technology used is the state-of-the-art AC-cou-pled off-grid systems from SMA Solar Technology AG equipped with 9 x Sunny Island 5048 and 6 x Sunny Mini Central 8000TL based on 3 banks of 4500Ah FLA batteries each at 48V from BAE, Germany. The PV sys-tem consists of 272 x ERA Solar 185W panels.

Project financingThe system was planned and installed from Eco Ki-netics Pty. Ltd., based in Brisbane, Australia, who organised the whole project in terms of sizing, in-stalling and training as well as especially the ship-ment of 47 tonnes of equipment to Vaitupu from

Germany and Australia. As a sustainably planned project, an 11-day training was conducted by Eco Kinetics Pty Ltd and SMA Australia Pty Ltd with the theoretical contents of basics of PV systems, system sizing, and technology of hybrid systems as well as practical components of installation, safety, com-missioning and data collection.

Project OutcomeAfter just one month of operation by the Tuvalu Electricity Corporation (TEC), the gathered data from the system shows already that approx. 46.000 litres of diesel will be saved each year, which is equal to approx. 65.000AUD currently. The school is now provided with electricity 24/7 whereas a die-sel genset was the only source in former times being turned off during the night.Above that, this system will also in contribute to the education of the Tuvaluan population and bring forward the technology of renewable energies in the pacifi c region.Tuvalu has already signalled the aim to install more systems of even greater size on another island in the state, based on the same technology.

Largest RE hybrid system on Vaitupu, Tuvalu

Company DescriptionThe SMA Solar Technology AG de-velops and sells solar inverters and central components of every solar power system. Currently SMA has over 5000 employees, is present in all the world´s important markets of the future, and is the only manufacturer to supply inverters

Cont

act: Michael Wollny

Tel. +49 561 [email protected]

SMA Solar Technology

Solar System at Motufoua Secondary School, Vaitupu, Tuvalu.

for both grid-connected and stand-alone solar systems.

The ChallengeThe Sisters of Notre Dame de Namur (SND) require stable electricity for their mission houses located in Nigeria. Unfortunately, grid provided electricity in Nigeria is irregular and unstable.

Opportunities for RenewablesThis region of Nigeria receives high radiation levels ideal for effi cient solar PV utilization (an average of 5.2kWh/m2/day). Unreliable fuel supply coupled with high cost of fuel and tough logistics challenges makes renewable energy attractive for the region.

Renewable Solution• 60 No. 190Wp Evergreen solar modules

• 12 No. Surrette 4V, 1350Ah @ 20 hr Lead-Acid battery

• 3 No. Outback 3000VA inverter/charger

• Diesel-engine generator set 8KVA, 6.4KW, 3 phase, 4 wire, 380-415/220-240 volts

• Grounding and lightning protection

The solar package was designed and installed to pro-vide power the following loads: Lighting, water purifi er, general power and Telecoms equipment, for both the convent house and the Primary school. Some of the Sisters at the convent were trained on simple operation and maintenance procedures.

Thomwell Energy Services Inc. acted as advisor and project developer to the SND. Thomwell was respon-sible for the engineering and procurement of offshore equipment, while Solarmate (as a subcontractor to Thomwell) was responsible for:a) Provide logistical support in the shipment of material

from outside of Nigeria to the Contractor’s facilities for subsequent forwarding to installation sites.

b) For procurement of materials locally as requested by Thomwell.

c) For design of certain portions of the installation sub-systems as directed by Thomwell

d) For construction services of the photovoltaic and re-lated systems at the various installation locations.

Project financingThe project was fi nanced by donors to the Sisters of Notre Dame de Namur.

Project OutcomeThe project has been operational since October 2008. The convent houses up to 20 people with up to 100 students.

Solar Power for an African Mission Station in Nigeria

Company DescriptionSOLARMATE undertakes design, supply and installation of power solutions for the various sectors of our Nation’s economy. The compa-ny is entirely Nigerian. Solarmate Engineering Limited is managed and directed by professional engi-neers and was founded in 1996.

Cont

act: Dotun Tokun

[email protected]

Solarmate

Installing the solar array (60 No. 190Wp Solar Modules) at Akwunanaw, Eastern Nigeria.

17

18

Dotun [email protected]

The ChallengeMany remote villages in west and southern provinces of China are not connected to public electricity grid due to large distances, diffi cult accessibility, and expected low energy demands. This denies com-munities of development opportunities through access to electricity.

Opportunities for RenewablesThe target destinations for this project are well suited for the use of solar energy. Some regions are in the vicinity of desert areas, some are located at high altitudes of up to 4500m and others are based in subtropical areas. All of these conditions provide good irradiation conditions for the use of photovolta-ic off-grid systems.

Renewable SolutionAfter thorough assessment of sociological, economical and technical factors, each village was equipped with a central village power supply system based on the AC-coupled Sunny Island technology. All power systems are based on SolarWorld’s multi-crystalline solar modules designed for off-grid applications. In some villages, a diesel generator has been installed to backup the pho-tovoltaic system in periods with reduced insolation (i.e. rainy season) and to reduce the necessary battery size.

Project financingThis project was co-fi nanced by the Chinese Ministry of Finance and the German Kreditanstalt für Wied-eraufbau (KfW). Financial support was also granted by regional and local bureaus of fi nance. Last but not least, the connected villagers contribute by pay-ing their electricity bill. The regional and local fi -nancial support enables the local project execution agencies to make provisions for e.g. subsequent bat-tery replacements ensuring the sustainability of the project.

Project OutcomeAll in all, 142 villages were equipped with renew-able power systems. Basic electrifi cation to power lighting, telecommunication, information technol-ogy, and entertainment has been provided to almost 30,000 people.

7000 homes receive clean PV-based renewable energy in China

Company DescriptionSolarWorld is one of the leading PV-manufacturers covering the entire value chain from raw silicon to both complete grid-con-nected and off-grid solu-tions worldwide – from Wp-Solar Home Systems to MWp power plants.

Cont

act: Ulrich Warna

Tel. +49 [email protected]

SolarWorld

Village power supply in Yunnan province of China.

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The ChallengeLaos is one of the world’s poorest nations with poverty concentrated in its rural areas. Kerosene lamps are widely used for lighting, which constitute a major fi re and health hazard, and only offer dim light-ing. Solar lanterns have so far failed to replace kerosene lamps due to low quality and misuse.

Opportunities for RenewablesBeing located in South-East Asia, Laos has plenty of sunshine, offering ideal conditions for photovolta-ic applications. However, night falls early all year round so the need for lighting after sunset is imper-ative. The population is dispersed, making stand-alone renewable energy systems a viable solution.

Renewable SolutionSunlabob has developed a rental scheme to enable poor households to afford solar lanterns. The system comprises a solar charging station and lantern units, operated by a village entrepreneur. Based on a fee-for-service concept, this model replicates conventional fuel consumption practices.

Project financingThe project is fi nanced via a private-public partner-

ship. Sunlabob provides the charging stations, which are rented to village entrepreneurs via franchise ar-rangements. A public donor fi nances the lantern units, which are managed by a village committee and also rented to the village entrepreneur. Follow-ing the initial investments, the model is designed to be maintained with rental income alone.

Project OutcomePilot tests have revealed considerable interest for our solar lanterns in rural Laos. In 2008, Sun-labob launched a south-south business initiative with the Ugandan company TSSD. Now solar powered charging stations are operating in sev-eral remote Ugandan villages. In 2009, Sunlabob was approached by USAID, ASMED, and DAI to carry out an assessment of the feasibility of the solar lantern project in Afghanistan, taking into account the local human, social and technical constraints.

Solar Lanterns for 1200 homes in Lao PDR

Company DescriptionSunlabob has been developing and providing renewable energy solutions in Laos since 2000. Our main focus is on off-grid rural ar-eas, which represent over 75% of the country’s 5.6 million inhabit-ants. Our solution empowers com-munities, whilst improving health and safety, and creating opportu-nities for income-generating and educational activities.

Cont

act: Simon Henschel

+65 8435 [email protected]

Sunlabob

Village Entrepreneur issuing a solar lantern to a villager.

Simon Henschel+65 8435 [email protected]

20

The ChallengeDue to the impact on the project’s fi nancial applicability, ensuring that a long-lasting battery is opera-tional over its lifetime is necessary. The energy supply depends on resource availability and the techni-cal conditions of the area.

Opportunities for Renewables“La Ye” is a lumberjack community within the Mu-nicipality of San Lorenzo in Ecuador. The village is isolated, but radiation conditions are very good (avg. G10 = 3,2 kWh/m2/day).

Renewable SolutionWith a mixture of clustered and scattered buildings in the village, the solution is based on a combination of a micro-grid and individual micro power plants under the same operation scheme. TTA’s design energy dis-pensers are used with a project-tailored tariff system to ensure the energy usage is according to the resource availability and the technical conditions. TTA’s propri-etary charge control technology is used to ensure long battery life.

A single 3,3 kWp PV generator supplies a DC coupled micro power plant with a 30 kWh battery storage and 3,6 kVA DC-AC inverter feeding a micro-grid. Individ-ual 400 Wp and 200 Wp PV systems supply 6 and

3 households respectively. All consumers are supplied with 120Vac electrical energy.

Project financingInitial investment: Grant by the bi-lateral Catalan Aid Agency (ACCD) and co-funding by Barcelona City Council, the community and the Municipality of San Lorenzo.

Operational costs and sustainability: Tariffs are fl at rate, fi xed for consumption level (550 Wh/day or 275 Wh/day). TTA’s design energy dispensers offer dynamic energy management.

Project OutcomeProject feedback demonstrated complete satisfac-tion from the users and the local authorities. The system has greatly improved the quality of life of residents through providing basic services and en-tertainment and furthermore, has already generated incipient micro-businesses.

PV hybrid energy powers a village of 19 homes in Ecuador

Company DescriptionTrama TecnoAmbiental (TTA) is an international consulting and engi-neering fi rm working since 1986 in the fi eld of renewable energies, en-vironmental projects and technology development. In rural electrifi cation, TTA has been involved in

Cont

act: Xavier Vallvé

Tel. +34 934 463 [email protected]

Trama TechnoAmbiental (TTA)

General view of the community in San Lorenzo.

studies, policy and implementation in many devel-oping countries.

22

The ChallengeThe project site in Ilakaka is a rural village with several thousand inhabitants and is a typical example of an isolated grid in Madagascar. The energy is sourced by expensive ineffi cient diesel power and distributed by a local IPP. Energy demand is rising due to increasing local businesses.

Opportunities for RenewablesThe wind speed on the hills near Ilakaka have enough potential to source energy, especially during the late afternoon and evening when consumption is at its peak. The existing diesel generator runs al-most 24/7. Adding a Hybrid wind turbine of a simi-lar power in parallel decreases the diesel consump-tion instantly.

Renewable SolutionThe old ineffi cient diesel generator was replaced with a modern one of 100kVA and combined with an 80kW Hybrid wind turbine. The wind turbine has two blades with a rotor diameter of 18m on a tower of 30m with integrated Telecom antenna for a local provider. The hybrid controller of the wind turbine has remote con-trol and can achieve a unique 100% wind penetra-tion! Yearly production of the wind turbine is about 160.000kWh at 6 m/s average wind speed. We trained our Malagasy colleagues in The Netherlands and on-site for installation and maintenance of wind turbines.

So far they installed and maintain over 40 off-grid wind turbines in Madagascar for IPP’s, Telecom and Private businesses.

Project financingThe project has been fi nanced by The Wind Fac-tory International in combination with its branch in Madagascar and the local IPP, supported by a Pri-vate Partnership Program of the Dutch Government.

Project OutcomeOver 400 grid connections provide energy to about 2500 people and over 200 businesses. Diesel con-sumption is expected to reduce by 40.000L annual, saving over 100Mt CO2. The local grid has been im-proved and new kWh-counters have been installed. As the biggest wind turbine built in Madagascar, this project has given confi dence to local govern-ment and private businesses that wind energy is not exclusive for main grids.

Installation of a Wind-diesel Hybrid system in Ilakaka, Madagascar

Company DescriptionThe Wind Factory has over 20 years experience in Engineering, Installation, Operation & Maintenance of on- and off-grid wind energy systems. Our focus is on de-centralized small and medium sized wind turbine systems, of which the majority is manufactured

Cont

act: Pieter Klimp

Tel. +31 (0)20 [email protected]

The Wind Factory

The Wind Factory installation in Madagascar.

in-house. As a group, we have installed hundreds of wind turbines worldwide. Additional O&M con-tracts shows our long term sustainable commit-ment.

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C O N C L U S I O N

These projects make a differenceThese projects are just a small selection of the thousands that are being realised worldwide by members of the Alliance. Through only 18 projects, these companies have provided access to elec-tricity to almost 1 million people in 23 different countries in 3 continents. Moreover, they have lead to enhanced education and healthcare, increasing access to water, and empowering women through modern energy services. The companies have transferred knowledge to electricity users; electrifi ca-tion can act as a starting point for self sustained economic growth and job creation. Thus, these case studies emphasize capacity building and project maintenance in addition to renewable solu-tions. The projects comprise more than 4 MW of power capacity and through displacing the diesel equivalent; they help to avoid more than 7000 tons of CO2 emissions annually. Most importantly, these projects bring living proof that the business community, the public authorities and the people in developing countries, using a variety of frameworks and fi nancing schemes, can work hand in hand to alleviate poverty and to create sustainable and clean economic growth.

Lessons LearnedDespite the breadth in project design, there are some key lessons that emerge from these prac-tise examples:• Rural electrifi cation is not a straightforward process. It requires sophisticated approaches and

long-term planning and life-cycle costs have to be calculated over the expected long-term time horizon of each project.

• Rural electrifi cation projects must adapt to local conditions; the mobilization of local com-munities and local companies is essential. Consumers must be educated on their electricity use, and local installer and technician training is indispensible. Capacity building, therefore, is crucial to the success of implementing off-grid projects.

• Projects must safeguard operations and maintenance. Very often electricity consumers cannot afford to cover the full generation costs. As a consequence, appropriate fi nancing schemes which safeguard the long term operations are essential.

• Energy effi ciency must be a guiding principle right from the inception of the project.

• The overall stability of legal and fi nancial framework conditions is very important. If these conditions are put in place, renewable energy technologies can be the economical key for al-leviating poverty and bringing electricity where it is most needed.

Next stepsARE invites all stakeholders in the fi eld of access to energy and energy security to consider the opportunities for renewables in rural development and to take on board the key lessons that our members have shared.

ARE invites other project operators in this fi eld to get in touch with us and to share their own experiences and encourages readers to contact the project leads for further information.

Information:Authors : Guido Glania, Simon Rolland, Aneri Patel • Second edition – Publication date : February 2011

Cover picture courtesy of Phaesun Gmbh

Alliance for Rural Electrifi cation • Renewable Energy House • Rue d’Arlon 63-65 • 1040 BrusselsTel. +32 2 400 10 52 • E-mail: [email protected] • www.ruralelec.org

The Alliance for Rural Electrifi cation (ARE) is the international business organisation for the renewable energy off-grid sector.

Our members are companies, research institutes, renewable energy agencies and associations.

ARE members stand for high quality, experience and sustainability.

Together we develop the renewable energy markets of the future!