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Study

on Access

to Ele

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in Latin

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Carib

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Overview and Energy Challenges

in LAC

A Study on Access to Electricity in Latin America

and the Caribbean

Innovation in funding

and payment

TABLE OF CONTENTS

2 A Study on Access to Electricity in Latin America and the Caribbean . November/2014

Preface 03

Introduction: Overview and Energy Challenges in Latin America 05

Access to Electricity in the Global Agenda 07

Communities Lacking Energy Access in Latin America 11

Conjunctural analysis of the LAC countries concerning the legal and regulatory aspects, government projects and/or other initiatives for access to energy and use of renewable energy 12

Access to Energy - The Problem 17

The Traditional Axis (Focus) of the Discussion on Exclusion of Communities Lacking Energy Access 17

The New Axis (Focus) of the Discussion on Exclusion of Communities Lacking Energy Access 22

Characteristics of the Continent to the ERs 27

Status of Countries 28

Social and professional companies in the supply of solutions 37 Energy Access Initiatives in “Rural Electrification and Pre-Electrification” Categories 37

Mitigating the Exclusion of Communities Lacking Energy Access and Access to Electrical Lighting 39

Business Models 42

“Mitigating the Exclusion of Communities Lacking Energy Access and Access to Electrical Lighting” Category 42

Innovation in funding and payment 44

Energy Access Funds Proposals 47

International initiatives and funding 48

Possible interventions 53

Types of Interventions, Results and Time Limits 53

The Establishment of a Latin American Platform for RE 57

Recommendations and Conclusions 57

Bibliography 61

Acronyms and Abbreviations 62

7 12 23 39 44 48 53

An iniciative: PLESE Plataforma Latinoamericana de Energía Sustentable y EquidadOrganized by: Fábio Luis de Oliveira Rosa, Alessandra da Mota Mathyas - SC 755 JP, RENOVE.Sponsored by: C.S. Mott FoundationGraphic design and layout - Maria José H. Coelho MT-JP/PR930 “The photos in this publication were provided by the partner institutions of PLESE”.

EXPEDIENT

TABLE OF CONTENTS


Latin America and the Caribbean currently faces two challenges in terms of energy – its progressive adaptation to climate change, including the transition from economies based on non-renewable energy and the inclusion of energy access for vulnerable and poor populations. More than 30 million people have no access to electricity in the region. Innovative energy solutions, such as mini-grids, hybrid wind, solar, hydro and biomass systems continue to become more financially accessible and technologically mature. Such advances provide opportunities for diversification of energy sources and access to clean energy in both grid-connected conditions and conditions where traditional models of electricity services (centralized generation – transmission – distribution) are unable to be deployed. This is specifically the case of isolated and scattered rural, riparian, indigenous and forest-dependent communities. This study will contribute to a greater understanding of the challenges and opportunities to accelerate the delivery of re-newable energy access to poor communities. Below we discuss how Latin American and the Caribbean countries are working to clear this energy deficit, either by laws or public policies, third sector, funding or international donations. Finally, we point out some suggestions for collaboration from institutions that may be interested in the subject.

A Study on Access to Electricity in Latin America

and the Caribbean


IntroductIon

OvErvIEw And EnErgy ChALLEngES In LAtIn AmErICA

And thE CArIbbEAn


The introduction of elec-trical services to people and societies has been one of the permanent activities throughout the twentieth century and the beginning of the twenty-first century. the immediate ackno-wledge of the technological benefits has driven the world into effectively developing the then ‘new’ electricity industry. The benefits experienced by companies, communities, fami-lies, public and private sectors have become indisputable. The technology has brought benefits to individual and family welfare, as well as to the relief of human labor in productive activities. The areas of Healthcare, Education, Communications, and Trans-portation benefited decisively. Electricity paves the way for the development of other technolo-gies, such as telecommunications and transportation.

Acknowledging such bene-fits for everyone who can expe-rience them in several conditions and applications is immediate. The way the access to electricity developed and is developing in various continents, countries, and societies varies according to their cultural, social, economic, political, and historical characte-ristics and the sources of energy

_____________________________________________1 REN21. 2014. Renewables 2014 Global Status Report (Paris: REN21 Secretariat). Disponível em http://www.ren21.net/Portals/0/documents/Resources/GSR/2014/GSR2014_full%20report_low%20res.pdf 2 MOURA, Edila et AL. Energia Elétrica para os domicílios de populações ribeirinhas em áreas remotas da Amazônia.

present in each society and na-tion. There is also a ‘gradient’ of access to, and use of, electricity, assuming that currently around 1.2 billion people across the world still do not have access to electricity, according to a study by the United Nations with support from the World Bank1.

“Access to electricity is linked to human well-being by providing facilities with reduced physical effort in productive activities, as well as other possibilities related to food security, health, education and leisure. In general, it contributes to promoting economic and social development. Therefore, the concerns of this century point out to ensuring that more people have access to electricity. Ecological concerns drive us toward expanding the use of clean and renewable sources for the production of such energy”.

The above statement by Prof. Dr. Edila Moura of the Fede-ral University of Pará2, Brazil, in an article submitted for the Clean Energy Program (USAID Brazil – Energy Program, 2009–2012), gives the dimension of the signi-ficance of energy in the twenty--first century and of the type of energy people need.



Upon introducing the ‘Millennium Goals’ in 2000, the United Nations began to consi-der the lack of universal access to electricity as an impediment to accomplish all such goals in their entirety. Thus, in 2011 the United Nations introduced the “Sustainable Energy for All” program precisely to promote access to electricity and elec-tricity services in the world of communities lacking energy access and as a way of allowing the millennium goals to be then materialized.

Making the next few ye-ars the Decade of Sustainable Energy for All is the goal of the United Nations. The declaration was adopted unanimously by 193 member states in 2012 and launched now in 2014 during the United Nations Sustainable Energy for All Forum (SE4ALL) last June in the USA.

The organization also ex-pressed in the Forum concern that, even though power is avai-lable today, millions of people in poverty cannot afford it. In one of the UN meetings, UN Secretary General Ban Ki-moon stated, “there can be no sus-tainable development without sustainable energy.”

In contrast, developing countries over the last eight ye-ars increased sixfold their ability to produce renewable energy, meaning that today about a fifth of the world’s energy co-mes from clean energy sources. Such information is contained in the World Situation Report – Renewables 2014, which was

Access to Electricity in the global Agenda

presented during SE4ALL. While there has been an

expansion of clean energy sources in developing coun-tries, the UN Report points out that 2013 registered a decline of political support from Euro-pean countries and the United States regarding investment in renewables. The causes were many – restrictions with respect to the grid, opposition from countries with large energy companies concerned with competition, and high global subsidies for fossil fuels.

Still, states the report, the-re has been an expansion in the market, with technological advancements, falling prices and innovation funding, which became the most affordable renewable energy worldwide. Accordingly, in 2013 for the first time the system was added more photovoltaic solar energy than wind energy. In total over 1,560 GW of renewables were added, 8% more than in 2012. Hydropower rose 4% and the other sources combined incre-ased 17%. Overall this repre-sented in 2013 a net increase of over 56% in global energy capacity. In addition, with the plummeting price of wind and solar photovoltaic energy, there are many projects being made possible without the financial support from governments. “Around the world, large indus-trial and commercial customers are turning to renewable ener-gy to reduce their energy costs, increasing the reliability of their

energy supply. Many have set ambitious renewable energy goals,” states the report.

On that account, 2013 en-ded particularly well for some countries in terms of renewable installed capacity: China, the United States, Brazil, Canada, and Germany. The best coun-tries for investment in new renewable fuels and energy in relation to their annual GDP are Uruguay, Mauritius Islands, and Costa Rica.

Heating and cooling using renewables are a vast, but limi-ted, potential, accounting for less than 10 percent of global heat demand.

At this point co-generation plants based on biomass and solar and geothermal sources could be considered.

To give a dimension of the progress and potential of renewables globally, the World Situation Report – Renewables 2014 features the following facts:

- In the European Union, renewables accounted for most of the new capacity to generate electricity for the sixth consecutive year. The 72% participation in 2013 contrasts with the previous decade when conventional fossil gene-ration accounted for 80% of new capacity.

- While the global invest-ment in solar photovoltaics has fal len almost 22% compared to 2012, new


capacity works increased by around 32%.

- China’s new renewable energy capacity surpassed new fossil fuel and nuclear capacity for the first time.

- Variable renewables achie-ved high levels of penetra-tion in several countries. For example, in 2013 wind power accounted for 33.2% of the electricity demand in Denmark and 20.9% in Spain, while in Italy there was a demand for 7.8% of total annual electricity for solar photovoltaic energy.

- Denmark banned the use of fossil fuel boilers in new buildings as of 2013, aiming to provide nearly 40% of the

total supply of heat in 2020 entirely with renewables.

- A growing number of cities, states, and regions seek to transition to 100% renewa-ble energy in both individu-al sectors and the economy as a whole. Among those who have already achieved their goals are about 20 million Germans. - The impact of such si-tuations on the numbers of jobs in the renewable energy sector has varied by country and technology, but the number of people working worldwide in re-newables industries conti-nued to rise. It is estima-ted that 6.5 million people worldwide work directly or indirectly in the industry.

Access to Decentralized Energy

Studies in Africa and the Americas (Peru and Guatema-la), indicated in the UN Report, show that attempts of lighting without electricity entail health hazards such as burns, smoke, and vision problems, in addition to having high cost. Kerosene--based or candle lighting is very faint (about 11 lumens – for ins-tance, one 100 W lamp provides 1300 lumens). Some families with higher income tend to use car batteries to power electrical lights, but their use is limited by cost and the need to recharge them.

As a general rule, the cost of maintaining candles or ke-rosene-based lighting is much higher than electricity. They also


show that the performance of inefficient lamps of large batte-ries is more expensive than good quality solar lamps. The cheapest source of lighting is still through the power grid with energy--efficient lamps. “A World Bank study in Guatemala (Foster et al., 2000) found that the purchase price of the families for a light unit was US$ 0.08 per kWh for electricity supply compared with $5.87 for kerosene and $13.00 for candles, making them 162 times more expensive than the use of the power grid.” Another study – SolarAid – found that, on average, lights kept with solar energy result in savings to Afri-can families of around US$ 70 a year, money that is then used for food, education and agriculture. Children had on average one extra hour per night to study, not to mention that lighting brought people closer by giving them a sense of security at night. A similar study was done in Brazil with the Light for All (“Luz para Todos”) program (which we will detail later).

So what once appeared as an obstacle for the initial cost of a solar lamp, largely because of its availability, is changing with recent advances in design and quality standards of technology, as well as with the growth of dy-namic solar-powered flashlight markets in various countries.

Renewab le energy fo r cooking and heating water is another way to use renewables that stands out across the world, as shown by several projects in Latin America.

As cooking is a daily neces-sity and about 80% of the food we eat need to be cooked, this is

a very relevant area. Two in five people (2.8 billion in 2010) rely on wood, charcoal or animal wa-ste to cook their food (Banerjee et al., 2013). Only 27% of people who rely on solid fuels (biomass or coal) are estimated to use improved stoves. Access to such stoves is even more limited in less-developed countries and Sub-Saharan Africa, where only 6% of people who use traditio-nal biomass benefit from such options (Legros et al., 2009).

There is also the need for sterilization of water and for its heating for washing and perso-nal hygiene, requiring stoves to be used for longer hours. It is also used for productive activities based at home, such as cooking food for animals, making beers and spirits, and cooking street food (often an important source of household income).

It follows that considering the large-scale use of eco-effi-cient stoves is also a pressing need. There are many models under development worldwide. In Brazil, led by the NGO IDER – (Institute for the Development of Renewable Energies) – based in the state of Ceará, 26,000 stoves were installed as part of an envi-ronmental education action and of the strengthening of suppor-tive economy by disseminating social technology to those who need it most.

These actions not only be-nefit families and centers for collective use, such as schools and health centers, but also boost the economy, especially in respect to people working in the informal sector. Even the now regarded as micro and small

_______________________________________________3 For the complete program www.ligthingafrica.com 4 www.se4all.org


business have their in their productivity and profitability be-nefit from efficient cooking and water heating as well as from portable lighting and electricity supply from renewable sources.

Poor entrepreneurs may need to expand their markets by providing products or servi-ces with suppressed demand in their local area, or by accessing larger markets or external custo-mers with higher income (Ate-rido and Hallward-Driemeier, 2010). F inding other niche markets for local products is a challenge that Brazilian authori-ties are facing and overcoming very well, with facilities that integrate different sources of renewable energy such as Eco-Engenho Institute in the state of Alagoas (the experience shall be described below). Therefore, support programs to micro and small businesses that take into account the use of renewable energy on a small scale in rural areas tend to be well as-sessed. “Without the support to businesses to expand their markets, the benefits of access to energy on income may not reach poor people,” ponders the UN report.

Renewable Energy and Gender Equality

Many recent studies point to women’s empowerment as a key benefit from access to ener-gy, as they consider the welfare of the family their main achie-vement, followed by insertion into the labor market. Normally the economic activities of the poorest women are linked to the generation of heat, such as food processing. In this case, they are the most vulnerable to health problems due to the dependence on dirty and ine-

fficient energy sources. More than optimizing the time and the quality of what is produced by the heat, improving the con-dition of life with eco-efficient stoves is a health issue.

Another important factor is lighting, which allows the women’s working hours to be extended into the night, when they can devote themselves to other activities such as handi-crafts and even studying. This was verified as a result of the Light for All Program (“Progra-ma Luz para Todos”) in Brazil, as we shall see below.

Given this situation, it is essential that companies over-come the barriers still constrai-ning the poor into a situation of exclusion of the benefits of energy. If on the one hand ac-cess to energy by conventional grids is difficult given geogra-phical conditions of commu-nities, cost of grid extension, and government economic pay-off for such service, on the other hand the experien-ces described below show that access to energy boosts new markets, new job opportuni-ties, new business models, and funding. Even though some of the experiences are not government-managed, having support from funding agen-cies and international NGOs, the benefits provided in local communities and economic development bring the greatest of benefits: the self-esteem that comes with social value and the feeling of belonging to a community and a nation. When speaking of micro-generation of renewable energy, that is, energy production at the point of consumption, we are also speaking of an egalitarian so-ciety, since the conditions so

that everyone can improve their lives through their own choices are then provided.

Initiatives for access to energy were progressively in-troduced through programs coordinated by the World Bank and other institutions, such as ‘Lighting Africa’3. At this mo-ment, various initiatives and funds already at the stage of deployment prioritize actions and investments in energy access for the African and Asian continents through UN’s “Sustainable Energy for All”4 program.

Such prioritization could be thought of considering the social and human global statistics of exclusion of those lacking energy access only. Comparatively the American continent and its Central and Southern subcontinents lose importance.

However, considering the importance of ‘green capital’ on a climate change perspecti-ve, Central and South American subcontinents end up playing an important and strategic role, since the region has the largest tropical rainforest, aquatic resources of both Pacific and Atlantic coasts, and approxima-tely 20% of all fresh water on the planet.

For this population of com-munities lacking energy access is dispersed precisely across this large territory, where they keep on depending on energy matrices with deep impact on the environment. This is due to reasons ranging from the pressure for extracting natu-ral energy sources (wood, for example) to the expansion of CO2 emissions, from the use of fossil fuels to the use of tradi-tional cooking methods.


Considering the scope of this study, research on the com-munities lacking energy access in Latin America sought not only statistical information concerning exclusion of those communities in LAC’s countries but also other indicators to assess issues indica-ting the permanence or improve-ment in relation to energy access.

Considering also the tech-nological advances and busi-ness models to provide energy services to the isolated and/or the poor, activities in support of the access to energy can now be materialized directly by govern-ments and private or social sector initiatives.

Technologically speaking, progressive developments on renewable energy sources in off--the-grid processes (micro- and nano-distributed generation) also take them as elements to

Communities Lacking Energy Access in LAC

be considered as alternatives to energy access.

This study also sought infor-mation on initiatives related to the use of renewables in diffe-rent countries, with both state and private applications. Legal and regulatory aspects were also considered. It is therefore neces-sary to understand the existence and extent of public policies na-tionwide for energy access and renewable energy in order to propose sustainable actions for the anticipation of energy access for the poorest.

Information available for each country are also very he-terogeneous, even including countries where it has not been possible to obtain statistical in-formation. The scarcity of specific publications in the area of access to energy by country as well as different criteria for defining ‘ac-

cess to energy’ contribute to the difficulty in establishing quanti-tative information and detailed, reliable statistics.

Arnaldo Vieira de Carvalho (Energy Sector – IDB) in the publication ‘Acceso a el Servicio de Electricidad y la Pobreza en America Latina y el Caribe’ (São Paulo, 2009) estimates the num-ber of people without access to energy in Latin America and the Caribbean to be 40 million. Additionally, he reports that 98% of the urban population have access to electricity while in rural areas “a minimum of 30% keep on without access to electricity.”

The graph below shows the evolution of the electricity service in the 1980’s, 1990’s and 2000’s, by country of the LAC region and in relation to the total population of the same country.

Another important informa-

As will be shown later, there is currently a need to simul-taneously analyze how countries (governments and societies) propose solutions to the issues of access to energy, renewable energy and socio-economic de-velopment.

Albeit relying on contingent information in some countries

concerning the legal and regulatory aspects, government projects and/or other initiatives for access to energy and use of renewable energy

Conjunctural analysis of the LAC countries

in order to count on a minimum of references for choosing invest-ments or providing guidance for models of projects and actions in each country.

The table below (TABLE 1)5

presents the current situation in some LAC countries for ‘Access to Energy’ and ‘use of renewable energy’.

and with unavailable information in others, this study proposes an analysis matrix to be applied by country which provides insight into advances and domains of each country and society in these areas. The absence of informa-tion on a large number of LAC countries indicates the need to expand the network of informants


tion confirmed through the same document is the claim that 95% of the indigenous population of the region is below the poverty line. Ge-nerally these populations are located in isolated and/or rural regions.

OLADE (Latin American Ener-

gy Organization) also confirms that the rate of provision of electric power is not comparable between countries, for the statistical para-meters as regards communities which have access to energy are different. It is suspected, for exam-

ple, that some countries consider a house to be energy-served if the power grid is available in front of the house, even if only 40% or less of these houses are actually provided with electric power.

_______________________________________________5 Information obtained from Señales Regulatorias para la Rentabilidad e Inversión en el Sector Eléctrico: Generación, Transmisión y Distribución - Año 2013. Available from https://sites.google.com/site/regulacionsectorelectrico/home


The CAF - Development Bank (detailed description below), in order to subsidize their investments in energy projects in Latin America and the Caribbean, conducted a study6 to identify where energy shortages are on the continent:


______________________________________________6 CAF 2012, based on information from OLADE (2011), IMF (2010/2011) and HDR-UNDP (2011)

The same entity presents the evolution of access to electricity by the population of the continent:

TABLE 3: CAF 2012



In order to understand the challenge of include those who lack of energy access, it is im-portant to realize the paradigms establishing the basic conditions for the understanding of the issue of communities lacking energy access in Latin America and the Caribbean. For better understan-ding, we propose that the discus-sion happen from viewpoints: the traditional approach, where we analyze the reasons and justifi-cations for the exclusion of those communities, and the innovative approach, where we analyze the reasons for the exclusion of com-munities lacking energy access to exist (or not).

In the first item below we focused on a technological model of electrical service and its develo-pments in the fields of regulation, business models, funding and government policy analysis. For the purposes of this report, when it comes to bringing electrical power to the common and private life of families and communities, it is important to analyze how these components were developed and applied in countries and societies, so that one can understand why the exclusion of communities la-cking energy access occurs from the perspective of maintaining a reference to the traditional mo-dels of technology and electricity services.

After this we analyze the recent technological advances that allow us to propose other forms and concepts of access to electricity. They have different

ACCESS tO EnErgy – thE PrObLEm

characteristics in terms of both the traditional concept of access to energy and different forms and channels of proposing the access. Although these are technologies and emerging business models, they need to be considered de-pending on the persistence of the exclusion of communities lacking energy access, which shows on its own the difficulty that traditional models have to provide services to these populations.

The Traditional Axis (Focus) of the Discussion on Exclusion of Communities Lacking Energy Access

Presenting the issue of access to energy for all in the Central and South American subcontinents as ‘the problem’, it is first necessary to define what is considered ‘ac-cess to energy’ for the purposes of the present study. This definition is necessary since the understan-ding on ‘access to energy’ went on to receive an ‘update’ in terms of ‘international social culture’ since the intervention of the Uni-ted Nations through the launch of its ‘Sustainable Energy for All’ program.

During the twentieth century the traditional concept of access to energy was mainly linked to the concept of ‘power distribution’ by use of cables (electrical wires). The matter of generation has always been conditioned to the concept of ‘power stations’ based on fossil or renewable energy sources. The first initiatives, in general, were taken by private entrepreneurs

and were held in urban centers, depending on both the concentra-tion of demand and the repayment ability of the customers to the avai-lable service. Such demand condi-tions and the ability to pay made then possible doing business from a private sector perspective. It is then possible to understand the lack of interest in investing in remote areas with low population density and intense use.

By the middle of the last century, considering the large in-crease in demand and consequent need for scaled-up investments in the areas of electricity infrastruc-ture (generation, transmission and distribution), the electricity sector was gradually ‘nationalized’ by go-vernments. Such condition allows access to multilateral funding of infrastructure investments, and the state takes an entrepreneu-rial and administrative role in the sector. It follows that in the period between the years 1950-1980 the region witnesses a progressive in-crease in generation capacity and transmission from large thermoe-lectric and/or hydroelectric plants over the previous models of non--interconnected local generation and distribution. The predominant model becomes the large centrali-zed generation and transmission and distribution carried out mainly by state-owned companies.

Even under the aegis of the state, the logic of investment in electricity infrastructure (gene-ration-transmission-distribution) is oriented within the restricted parameter of the ‘logic of private


investment’. That is, it is assumed that local and regional economic development is sufficient to ge-nerate and distribute wealth to all, and that this would then allow everyone to reach a minimum welfare condition as well as to pay for the investment in access to grids. Such logic works well in a way, and increasing investments in the countries under expansion of electricity generation and distribu-tion are also held in rural regions of the countries.

Naturally regions where agri-culture is more intensive with more intensive methods of agricul-tural practice were given priority in investments in rural electrification, for it is a segment with high ener-gy demand and economic activity with strong cash flow. This case is exemplified by the use of energy for irrigation, drying and storage, as well as for the agribusiness. On the other hand, demands for energy services derived from re-gions with low population density, usually also with low economic activity, end up not being viable under traditional analysis criteria of sustainability for funding the intended investment.

However, many other regions received heavy investment in electric infrastructure, yet much of the population was disregarded in access to electricity services, even though they were located in front of or under the very rural electrification grids. In this case, it is revealed the lack of social sensitivity of the very governments as responsible for public invest-ments and debts, and who did not distributed their benefits to all its citizens equally.

In Brazil in the 80’s a group of engineers, political leaders, mayors and later government offi-cials initiated further discussion

concerning the cost of technolo-gical standards of rural electrifica-tion. In the extreme south of the country, in the state of Rio Grande do Sul, the mayor of the small town of Palmares do Sul used an innovative and low-cost method to bring power to small farmers.

The initiative was based on the methodology of management and community construction, in-tegrating municipal government: communities, new technological standards of high efficiency and low cost, revision of patterns of distribution (distance between posts, size of transformers, protec-tive structures against over volta-ge, type of posts). In the end, the cost of investments was reduced by 90% to the users compared to traditional patterns, and commu-nities could then fund their own access to energy.

At the same time, political le-adership of mayors argued on the lack of funding for small farmers, claiming that these were treated as ‘second class citizens’: unlike urban citizens, they did not have access to electricity from a public service that should be provided to all. Additionally, behind these high costs there was also corruption, either by super-sizing distribution systems (standardized for such conditions) and by the high costs of equipment. The technological and construction model started re-ceiving all kinds of criticism, both from managers of state companies responsible for the monopoly of power distribution and from the very body of electronic enginee-ring in engineering schools.

After ten years of discussion in-volving universities, the National De-velopment Bank of Brazil (BNDES), state governors, congressmen and senators, the proposal of this small group was accepted as a model of


access to energy to the poor and public funding began to be direc-ted to this population. Reducing costs of infrastructure investments enabled the launch of a national plan for access to energy, 20 years after the experience of Palmares do Sul.

In general, the ‘ingredients’ of the revolution included politi-cal will, revision of technological standards, revision of the concept of electricity service provision to populations, new business models and management, revision of le-gislation and technical regulations (technical standards of distribu-tion), integrative business models between communities, munici-pal governments, development banks, public funds, federal and state governments, and legislative power. Progressively the prevailing social culture began to recognize that access to energy is a right of the citizens. Before that, it had been necessary to show that the public sector was not able to reach

citizens with their services, for the citizens had legitimate reasons to conduct their own models, consi-dering the poor service provided by the state.

In 2002 Brazilian National Con-gress voted Law 10,438, which was sanctioned by the President in May of the same year. The law then became a ‘State Policy’ and set the goal of universal access to electricity for 2015. Later in 2003 the Lula da Silva administration executed the government program called Light for All (“Luz para Todos”) in order to abide by the law.

However, from the national perspective on the Latin Ame-rican continent the traditional model of state indebtedness and investments for the development of national electricity sectors lingered on. Thus, the number of ‘communities lacking energy access’ increased. Investment criteria of the national electrical planning and analysis criteria by international funding agencies

reveal the difficulty to understand the social importance of access to energy, as well as to be a vector of development and ultimately their relationship with other develop-ment indicators.

As the same process and logic are repeated in most Latin American countries over four decades, it is shown that “the confinement of economic and technological advancement is res-tricted to the megalopolises and to strongly capitalized regions. By design, development does not reach the majority of the poorest, scattered in rural areas” 7.

The records held above ex-plain the logic of culture still present in societies of many countries. Such social culture then permeates that which is taught in universities, which is established as a reference through regulation, which is established as a gover-nment proposal to citizens, and also, as a consequence, how the private sector can contribute.

_____________________________________________ 7 RIBEIRO, Fernando Selles. Eletrificação Rural de Baixo Custo. USP – Universidade de São Paulo, 1993.


Additionally, civil society, ei-ther in a dispersed way or through its organized associations, can then present claims or its own initiatives as long as it does not interfere with the institutional de-terminations and the operational mode set. The lack of national statistics that effectively reveal the number of communities lacking energy access is a revealing fact of the shortsightedness of societies and countries, which even fail to recognize the magnitude of the problem and do not know the quantitative extent of it.

As pointed out by Arnaldo Vieira de Carvalho in his aforemen-tioned study, “state intervention to ensure the expansion of coverage is required if for the private sector the rural electrification project is not profitable”. Furthermore: “the incentive to invest should be limited only to the required invest-ment: the cost of maintenance and operation should be covered by the users through tariff system that is set to ensure the sustai-nability of the systems operation during their life”8.

Thus, it is concluded that even if there are encouragements and partial public coverage for the financing of electric infrastructu-re, it is also necessary to ensure payment for the use of electricity. This is a fact which implies a refi-nement in compensatory public policies that support those living below the poverty line.

Everything discussed so far is about presenting an investment logic with purely economic criteria and consideration of the access to energy from a traditional tech-nological perspective and only in terms of the relationship between investment cost & ability to pay on behalf of the beneficiary. Esta-

•Fight against artificial deserts (resulting from misguided agricultural work);

•Agriculture and irrigation;

•Productivity of land and fertilizers;

•Damming of r ivers and navigation;

•Cheap tariffs;

•Rural Electrification;

•Mechanization of Agriculture.

to, and use of energy, translated institutionally through TVA - Ten-nessee Valley Administration, Ru-ral Electrification Administration, and NRECA - National Rural Electri-fication Cooperatives Association.

The program prepared by the government relied on the follo-wing theses:

David Lilienthal in his book ‘TVA - Democracy on the March’ shows the result of this integra-ted program of use and access to energy, from which we quote just two paragraphs:

“The e lect r ica l power provided by the river spreads to every corner of the Valley. It was to reach 90% of the 400,000 farms of the seven states. In 1933 there was electricity in only thirty percent (30%) of the farms in Mississippi, one in every thirty-six farms in Georgia, and one in every twenty-six farms of Tennessee and Alabama.

Today, in some parts of the valley electrification of rural areas is almost complete; in others, there is still something to be done. But from now on, the main task of rural cooperatives will be arrange for the farmer to use more and more electricity, in order to increase their productivity and income”

blished by this logic, the poorest are unable to access electricity, for their family financial inflows are minimal (even non-existent for some groups) and therefore insufficient to cover the basic condition of living such as food and very basic needs.

Still considering the technolo-gical model of electric service in the twentieth century (centralized generation-transmission-distribu-tion), in the USA another proposal for access and use of energy in locations under social and econo-mic depression is presented. In the 30’s, elected amid an unpre-cedented economic crisis, Franklin Delano Roosevelt declared that “electricity is as necessary to the new civilization as the light and heat from the sun.” His plan of government had as platform a plan for decreasing, through progress, the unemployment that reached 45% of the national workforce. There was much poverty in the countryside. The initial energy consumption showed a similar picture to that of rural Brazil and Latin America half century/70 years later. Income had dwindled and the capital evaporated. What existed was recession and low economic activity.

Roosevelt decided that elec-tricity would be a boost mecha-nism. And that it was going to belong to all, rich and poor. And so he started works for power generation, transmission and dis-tribution of electricity. That was how he progressively introduced the initiative to access and use of energy as a vector of economic and social development, some-thing well illustrated by the action of social integration and economic development held at the Tennes-see Valley. That was provided by initiatives in production of, access ______________________________________________

8 CARVALHO, Arnaldo Vieira. Op. cit


In this case, it is shown ano-ther approach to energy access, based on the consideration that access and use of electricity is an important vector for promoting local development, creating jobs, economic production, mobiliza-tion of the economy, increase in tax collection, increased family income, and local development. From this perspective, investing in rural electrification and its pro-ductive use is a good deal for the government, the private sector in general and for societies.

In the form of state policy in favor of the universal access to electricity, the political deter-mination of Franklin D. Roosevelt echoed in other countries of the Central and South American sub-continents only 70 years later, in 2002, with the Law 10,438 that established ‘Universal access to, and use of, energy” in Brazil, as previously mentioned. It follows that Brazil has become the third country in the continent (after the USA and Canada) and the first in Latin America to define energy access and use as a ‘state policy’.

Other countries in the Ame-ricas have subsequently done so, according to the table shown above. With these data it is possible to ex-plain the phenomenon of commu-

nities lacking energy access in Latin America and the Caribbean:

•On the one hand, social groups without economic conditions to remunerate investment costs and operating rates, comprising in some cases the vast majority of rural residents

•An investment logic restricted to the relationship “cost of investment - ability to pay” thus affects the regime of micro-economic analysis (without considering macro-economic and social benefits)

•Social culture of technical, regulatory and decision makers referenced in technologies, business models and regulation relevant to the traditional technological model, that is, ‘centralized generation-transmission-distribution’

•Absence of integrated national plans to promote access and productive use of energy as a vector for social inclusion, income generation and local development.

•Absence of political will to do so

•Absence of social and national awareness about the problem.

However, references and justifications previously discus-sed collaborate to explain the issue of communities lacking energy access from a ‘tradi-tional axis of perception’ in relation to the existing model, based on centralized genera-tion-transmission-distribution and business and regulation models conditioned by the te-chnology model available.

A relatively recent techno-logical advancement has been the ‘nano’ technologies of renewable energy, electric por-tability and lighting efficiency. This type of technological ad-vance has social and economic implications for communities lacking energy access, such as facilitating access to essential electrical services, albeit par-tially. But - without a doubt - a hundred percent inclusive.

In this sense, technologi-cal advancement allows us to propose solutions to energy access from other perspectives and interpretations, as we shall discuss in the following item.


While, on the one hand, a model of low-cost rural elec-trification by extending power grids was proposed and adopted, which would reduce the costs of investment, on the other hand, the technological advance in relation to the use of other energy sources and concepts provided new solu-tions to contribute to solving such challenging problem. Thus, from the late 80’s early 90’s off-the--grid solutions started to emerge, adapted to remote and sparsely populated areas, where grids would hardly bring the benefits of ‘electrification using wires’.

During the 90’s there was a technical progression in modeling these isolated systems, which were characterized mainly by

the new Axis (Focus) of the discussion on Exclusion of Communities Lacking Energy Access

Taking the previous ele-ments that justify the issue of communities lacking energy access from the point of view of traditional methods of elec-tricity services, let us discuss an alternative approach to this issue as regards exclusion and inclusion.

The way the issue of com-munities lacking energy access is analyzed becomes a fact that happens due to the inability to provide access to a service (or utility) from a given service con-cept, technological standard or amount of available energy.

In this case, it is assumed that the amount of available energy has the following cha-racteristics:

producing energy with solar pho-tovoltaic and/or wind sources and by storing the energy produced in batteries for nighttime use. In ca-ses of greater population density, the concept of mini-grids was re-sumed, consisting of a centralized source of renewable energy (usu-ally solar, wind or hydropower) which provided energy distributed through a small extension of low voltage electrical grids. During this period, both technical concepts and specific products for this type of electrical service matured satisfactorily and also become a reliable solution in the technical aspects.

However, there are numerous cases of failure in community ini-tiatives with facilities off-the-grid in various countries of the continent. A rigorous analysis of models of independent decentralized generation commissioned by the Ministry of Mines and Energy of Brazil to IDEAAS, under covenant UNDP/MME BRA 099 during 2003 and 2004, provided two important pieces of information:

• The initiatives were devoid of qualification and training for sustainable management activities after installation, and

• Only one initiative had de-veloped a ‘protocol of sustainable management’, a fact that granted exclusively such initiative the condition to continue operating sustainably after the installation.

Additionally, it was also re-vealed that many community initiatives perished in the medium term due to the meager financial


_______________________________________________9 The facility is located in a rural area of the municipality of Santo Antônio da Patrulha, in the state of Rio Grande do Sul, distant about 90 km from the capital Porto Alegre. The facility is open to visitors and students of all levels and performs experiments integrating the different sources of renewable energy and technical training courses.

condition of its participants to bear the costs of system maintenance.

IDEAAS continued their de-velopment activities and training of management models for the sustainability of autonomous ini-tiatives of energy access through its ‘Learning Center for Renewable Energy and Distributed Genera-tion’ (“Centro de Aprendizagem para as Energias Renováveis e Geração Distribuída”)9. From the mid-2000s, new technological de-velopments brought about more contributions to the issue of elec-tricity services to the isolated com-munities lacking energy access.

Simultaneous advances in lighting and energy storage allow the development of portable ‘nano’ systems of basic electrical services. In the area of lighting, the advent of LED technology pro-motes the same amount of light (lumens) than traditional bulbs (Edison bulbs), saving around 90% of the energy consumed by the lat-ter. When compared to electronic compact fluorescent lamps, there is a 50% economy to provide the same amount of illumination.

Technological advances also happen in the area of energy storage by the use of new mate-rials, driven mainly by the need to extend the electric autonomy and portability condition of cell pho-nes, smart phones, and tablets.

On the other hand, the pho-tovoltaic industry is entering the process of expanding its industrial capacity according to progra-ms of diversification of energy sources and encouragement of renewables and distributed micro--generation in North America (USA and Canada) as well as in Europe (Germany, Spain, France, England, Italy, and others).

Thus, in the early 2010’s, the price of solar watt lowers to between $0.50 and $0.70, when ten years ago its cost was around $5.00. These three simultaneous situations benefit the develop-ment of ‘nano-equipment of basic electric services’, which provide basic energy services but are very important to provide energy sustainability for lighting, commu-nication and telecommunication equipment already being used for

isolated populations. These types of equipment,

which due to their simplicity have low cost and can either be purchased from the market alre-ady mounted under a supportive economy system, have also beco-me an option for access to basic energy services, autonomously, for the poorest and isolated. In this sense, considering all technical possibilities for energy access, it is important to clarify that these are different technologies with different costs, providing different amounts of energy.

Considering the importance of energy as a vector of develo-pment, it is essential to clarify that different amounts of energy provide different production ap-plications and can even be a limi-ting factor when there is a need for greater amounts of energy. However, by meeting the needs of communities and families, as well as potential future demands, it is possible to establish initiatives that address the needs according to the local conditions of sustai-nability.


Below we reproduce the classification developed by IDEAAS about technology models for energy access, as well as their average cost and benefits (electric utilities) that can be provided.

CAtEgOry - rurAL ELECtrIFICAtIOn Low-cost model with community organization and participation and revision of technical standards.

Reference to the Brazilian program of universal energy access. “O Projeto Palmares”. Palmares do Sul, Estado do Rio Grande do Sul State, Brazil, Year: 1984.

Community building of low cost power grids and typical electrical wiring and house of recipients.


Phot

os: F

ábio

Ros

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CAtEgOry - PrE-ELECtrIFICAtIOn

CAtEgOry - mItIgAtIng thE ExCLuSIOn OF COmmunItIES LACkIng EnErgy ACCESS




______________________________________________10 The map shows the annual averages of daily global solar irradiation over the Brazilian territory. Despite the different climatic characteristics observed in Brazil, one can observe that the average annual global irradiation features good uniformity with relatively high annual averages across the country. The maximum value of global irradiation - 6,5kWh/m² - occurs in north Bahia, near the border with the state of Piauí. This area has a semi-arid climate with low rainfall throughout the year (approximately 300 mm/year) and the lowest annual cloud coverage of Brazil. The smallest global solar irradiation - 4.25 kWh/m² - occurs on the north coast of the state of Santa Catarina, characterized by the occurrence of well distributed rainfall throughout the year. The values of global solar irradiation over any region of Brazil (4200-6700 kWh/m²) are higher than those of most European Union countries, such as Germany (900-1250 kWh/m²), France (900-1650 kWh/m²) and Spain (1200-1850 kWh/m²).

In times where climate chan-ge and sustainability have become a major global concern, along with the issue of access to energy, it is necessary to learn what kind of energy will be used and how sustainable this model will be. It is known that the energy model has affected and will continue to affect not only the social life, but the economy of the entire planet. Our wager for universal access is placed on the production of clean and renewable energy sources.

ChArACtErIStICS OF rEnEwAbLE EnErgy On thE COntInEntE

To get an idea, recent studies show that the annual insolation in Mercosur (Common Market of the South) is better than in Greece, Israel and Turkey (1400-2200 kWh/m²/year), countries already using solar energy in daily life. In 2004, 8% of global installations of solar boilers were installed in these three countries.

Following the solar potential, development in Mercosur to mol-ds of what Greece did a decade ago, could result in 30 million solar

boilers, extra 140,000 jobs and an economy of more than 6 million m³/year of gas.

In the specific case of Bra-zil, the largest country on the continent, the Brazilian Atlas of Solar Energy recorded a decade of measurements and shows that the region with the lowest solar irradiation in the country has much higher irradiation than the best region of Europe, which by itself justifies the incentive to this alter-native energy source. See map:


ARGENTINALike Brazil, Argentina is con-

sidered a country rich in natural resources for renewable energy. Patagonia features a strong, in-tense and constant wind. To the northwest, the abundance of sunny days arouses interest in both pho-tovoltaic and thermal solar sources. In the mountain range area there are many sites whose geothermal energy could be harnessed. And at the east coast by the Atlantic ano-ther important source could come from the energy of the ocean, tides and waves. However, until the early twentieth century, the major ener-gy source in Argentina was thermal and petroleum-based fuels, large hydro plants and nuclear.

In 2006, things started to change with Law 26190 and later with Decree 562/2009, which re-gulated energy. With the aim of promoting the use of renewable sources, Argentina has created, among other actions, a fund to generate additional compensation to market rates and included tax benefits for investments. The De-partment of Energy’s (SSEE, Energy Secretariat of Argentina) is respon-sible to put into practice what is established by law. The incentives are for wind, photovoltaic, geother-mal, tidal, biomass, biogas, landfill and hydropower sources below 30 MW. The goal is to supply 8% of the electricity demand in the country with renewable energy by 2016. Through the GENREN Program, the government came forward to buy 1000 MW of renewable energy with fixed contracts for 15 years. In the first phase of the project, 895 MW with the majority of projects for

Status of Countries

wind power were approved, con-sidered the source with smaller in-vestments and less financial risks11.

The country has 40 million inhabitants, 39% of them living in Buenos Aires. On the other hand, 75% of the territory is arid and dry.

Electricity is usually generated by the following sources:

53% thermal plants; 40% hydroelectric; 7% nuclear

The country is also developing since 1999 the PERMER - Project for Renewable Energy in Rural Markets - in five regions of the country:

Individual and multiple gene-ration systems were installed. Until December 2012 27,442 systems have been installed in homes, con-sisting of 23,456 solar systems and of 1,615 wind systems with addition 2,351 systems through mini-grids. This also took place in 1894 schools (with solar energy) and in 361 pu-blic services organizations12.

In arid areas, there is little population density: 14.4% inha-bitants/km2. 4 million are living in scattered regions, a fact which increases power grid costs and transportation of fuel such as na-tural gas.

The use of bottled gas is one of the most important energy sour-ces to 16 million Argentinians. In spite of the existence of the ‘Bottle for All’ (“Garrafa para Todos”) pro-gram, organizations such as Eco-Andina, which develops projects in isolated regions, believe it is a very limited program that does not reach all the locations in need (we shall see more about the work of this entity in Chapter 5).

There are only six places in the world with over 2200 KWh m2/

year of solar irradiation.. One of them is in the Argentine Altiplano region, in the city of La Quiaca, Ju-juy, northwestern Argentina. 2900 kWh were measured in the region.

Despite this privileged geogra-phical situation for the production of energy from solar power, there are obstacles to the develop-ment of the sector. According to EcoAndina’s Silvia Rojo, it is difficult to access financial funds, taxes for importing solar photovoltaic panels and collectors are high, initial investment is very high, and repayment lasts too long. And since there are many subsidies for fossil fuels in the country, renewables are left with little government exposure.

The country has high levels of electricity coverage, but despite this and the strong public invest-ment, according to Fundación Suiza Alimentaris (www.alimentaris.org), there still exist 150,000 households without access to energy in the country. The government is com-mitted to the reissue of PERMER II, which should be approved soon. To achieve faster coverage, with less cost and more sustainability, Funda-ción Alimentaris, with support from World Bank’s ESMAP program and Energética company of Bolivia, is delivering a ‘third generation’ solar equipment which is widely distribu-ted across Africa and Asia, but still not well known in Argentina, nor proved or certified.

BOLIVIA

The main source of energy in Bolivia is natural gas, accounting for much of the finances of the country, since it is exported by _______________________________________________

11 http://www.lanacion.com.ar/1375687-el-panorama-de-las-energias-renovables-en-argentina accessed on 06/30/2014.12 https://www.se.gob.ar/permer/


pipeline to other countries of the continent.

Electricity is produced and distributed as follows:

58.9% thermal39.3% hydro1.7% biomass83% are in the National Inter-connected System (“Sistema Interconectado Nacional” – SIN)524 isolated systems

However, despite exporting energy (gas) and also due to the geography of the country, situated in the middle of the Amazon forest, many isolated communities still lack access to electricity. For that reason, delivering portable systems has become a major public policy for Energética, Bolivia’s utility com-pany (www.energetica.org.bo).

By 2013, Energética installed 20,000 photovoltaic systems. It seems plenty, but considering the huge demand, there is still a lot of work to be done. The country aims to universal access to energy by 2025 only and still has 550,000 locations in need of electrification. Such regions with less electricity coverage are also the poorest. Consequently, as a quick fix, Ener-gética is incorporating the concept of electric portability, with lighting kits and access to energy and cell phone recharge.

It has been difficult to provide such regions with electric power through grid extension. Decentra-lized micro-generation in Bolivia also stands as an important step towards achieving the goal of uni-versal access.

Recently, with support from the UNDP, a bill for use of alterna-tive energy in plants under 30MW has been widely discussed with society. The goal is to progressively offer alternative sources of energy – 3% by 2017, 5% by 2020 and 10% by 2025. The proposal is called the

Act for Generating Electricity with Alternative Energy and is being submitted for analysis from the Plurinational Legislative Assembly.

BRAZILThe largest and the only Por-

tuguese-speaking country in the continent has the greatest energy challenges of the region. Holding a national integrated energy system (SIN) respected around the world, Brazil can generate electricity in all regions and share it across the territory, according to the required demand. But this situation gives rise to quite peculiar situations. For example, the largest dam in the world in the 1970’s was built in the state of Paraná, in the South, at the border with Argentina and Paraguay. However, the population living around the great lake formed by the plant does not receive the power generated by it. For many, only the environmental liabilities from creating a giant lake were left. Therefore, Itaipu plant had created a Technological Park which is studying and developing actions to compensate for this lack of in-teraction between the enterprise and the dozens of municipalities impacted by the work. There are projects with biogas for energy production from waste from the intensive livestock production in the region. Besides the alternative energy that is generating income to farmers, there is an unmeasurable environmental gain, as the waste previously thrown in rivers flowing into the plant’s lake is now conver-ted into clean energy.

Itaipu Technological Park 13

also hosts the Federal University of Latin American Integration – UNILA14, created by the Brazilian government, completely free to students, and with 50% of its students coming from other Latin


American countries, also fulfilling its important role in the integration of countries not only by energy but also for education. Other major projects being conceived in Itaipu Technological Park, such as foste-ring the industry of solar photovol-taic panels, distance learning, and technology incubator, are always looking for partners who can fa-cilitate such initiatives financially.

Experiences such as those developed in Itaipu Technological Park take place in all regions of Bra-zil, either with government support or from international institutions through NGOs and technology companies.

LIGHT FOR ALL (“LUZ PARA TODOS”)

The National Program for Universal Energy Access and Use, created by Decree 4873 dated 11/11/2003, aimed at promoting the universalization of electric ser-vices to the entire Brazilian rural population by 2008. In 2010, IBGE data showed that only 1% of the Brazilian rural population remai-ned without access to electricity, while in the state of Amazonas the figures amounted to 6%. A study from Mamirauá Institute points out that in 2012 none of the 2296 hou-seholds in Mamirauá and Amana reserves (about 13,000 inhabitants) had regular access to electricity. In locations such as these, energy is usually provided by thermoelectric diesel mini-plants, operating from two to four hours a day, depending on the availability of diesel – which always arrives by boat and often needs to be purchased by the community. “In villages with less than four households, which cor-responds to 6% of total locations, ______________________________________________13 http://www.pti.org.br 14 http://www.unila.edu.br 15 MOURA, Edila et AL. Op cit16 The work of this consortium will be discussed in the chapter on funding.17 Available in http://www.mme.gov.br/see/galerias/arquivos/Publicacoes/Pesquisa_de_Satisfaxo_201 3.pdf.

darkness is total,” reveals Professor Edila Moura 15.

Realities like that explain why, in 2014, the target is still short 2% of completion by the Light for All program. This is the biggest challenge since it is impossible to deliver energy across distribution grids to the regions that remain to be served. Thus, decentralized energy, produced at the point of consumption, appears as the solu-tion for Brazil to achieve the goal before international bodies.

The arrival of electricity to a rural or extractivist family is so important that it was the subject of scientific studies developed by Mamirauá Institute and the Federal University of Pará. In a community called Puna, in the Amazon, a lot has changed since the arrival of energy through the Program in 2011. There has been an increase in the purchase of domestic ap-pliances in 80% of households, as well as an expansion of economic activities such as the production of flour, storage of fish, plus the emer-gence of new service providers such as hairdressers. The arrival of energy illuminates the streets, the school and the gospel church. It also allows the pumping of wa-ter to the houses and the school. However, residents who are more distant from the community core remain excluded as regards energy access, since the grid extension cannot reach there.

In locations where conventio-nal power has not arrived, partners of the Clean Energy Consortium16

introduced lighting kits charged with solar energy. 42 households were covered in communities without energy. For the initiative, the action was rewarded by Philips

Brazil and called ‘Moon for a Bet-ter Life and Light for Knowledge’, since some of these kits are used by students and teachers in their efforts to study at home during the night. Another NGO partner in such projects, the Health and Hap-piness Project – PSA took the kits to communities living by the Tapajós, another giant Amazon river.

Aside the challenges of uni-versal access to energy in Brazil, the Light for All Program has important merits in its ten years of existence. A recent study by MDA Research commissioned by the Ministry of Mines and Energy (MME)17 found that with the free time provided by the use of electronic equipment, women were the biggest benefi-ciaries. According to the study, 7.5% of housewives said they used their time to start a productive activity and increase income, 9% resumed or started their studies, and 81.8% began to feel much more secure in their community. Another rele-vant fact is that with the arrival of electricity to rural areas, 244,500 women started some productive activity. Of those, 25.3% work with crafts, 22.3% are dedicated to sewing, 21.9% work in trade and 12% remain in agriculture. It is safe to assume that electricity is an im-portant tool for women’s liberation, contributing to gender equality.

According to the Ministry of Mines and Energy of Brazil, by Mar-ch 2014 the Light for All Program reached the milestone of 3 million, 117 thousand and 368 families ser-ved in the Brazilian countryside, benefiting more than 15.1 million people who could see the arrival of electricity in their homes.

CHILEThe country is considered last


place in the ranking of energy secu-rity in the region, in spite of having 96% electricity coverage in rural areas in 2010 and practically 100% in urban areas. This is due to a his-torical dispute with Bolivia, which heads its pipeline first to Argenti-na and then to Chile. Indigenous groups and member organizations are opposed to the construction of hydroelectric plants, and the idea of nuclear plants was practically dis-missed after a strong earthquake in 2010.

The upland geography of the Andes hinders access of isolated communities to the conventional power grid. For that reason, the Energy Center of the University of Chile is developing a micro-grids project.

However, several social players have been discussing the Chilean energy situation in spaces called ‘Energy Scenarios’ (http://escenariosenergeticos.cl). This hi-ghly representative group has been discussing the future of access to energy and energy diversification with a timeframe until 2030.

COLOMBIAElectricity in Colombia comes

mostly from hydropower (65%) and fossil fuels. However, according to a study of the Energy Sector Mana-gement Assistance Program, the country would have more than 28 MW of installed capacity with re-newable energy, excluding hydro-power, which would be enough to supply all the needs of the country.

The wind capacity in Colombia is quite significant. Its winds are rated 7 (almost 10 m/s), similar to Chilean and Argentine Patagonia winds. In Guajira department, northwest of the country, the es-timated potential is 21 GW (almost twice the national demand), but until now little more than 19 MW were installed.

In addition, the use of solar energy is quite unimpressive. The approximately 80,000 panels cur-rently installed are in rural areas where the geography hampers the arrival of transmission and distribu-tion grids, and also on communica-tion towers.

The World Atlas of wind and wind energy, as well as solar irradia-tion in Colombia, date respectively from 2006 and 200518 .

ECUADORIn 2010 the Ecuadorian pe-

ople experienced almost daily blackouts lasting up to four hours. The production of oil recorded con-siderable drop, which really hurt the country economically, since it practically lives from this source. Natural gas and clean sources such as hydropower or renewable fuels together correspond to 6% of the country’s production.

There are studies in develo-pment, such as recycling urban solid waste for biogas, and training courses for the use of biodigesters and energy recovery from residual biomass. But there is still no major project in operation in this area. The Ministry of Electricity and Re-newable Energy will also conduct a study to determine the potential of cogeneration in the country, considering the industrial sectors with higher energy demands. It is

______________________________________________18 Data available in ESMAP, 2007. Review of Policy Framework for Increased Reliance on Renewable Energy in Colombia.


electrical interconnection system to Central America, including Mexico and Panama.

PERUPeru is the third largest coun-

try in South America. It borders Ecuador and Colombia to the nor-th, Brazil and Bolivia to the east, Chile to the south and is bordered to the west by the Pacific Ocean. It is geographically divided into three very distinct regions – coast, mountains and the Rainforest. The

all very embryonic. It makes no sense that the

country hosting the OLADE – Latin American Energy Organization – fa-ces such a situation. The exception is the care provided for Galápagos Islands, a natural sanctuary. The Board of Renewables of the gover-nment is developing a zero fossil fuels initiative through renewable energy projects.

GUATEMALAThis small Central American

country has the goal of 97% of full coverage of electricity by 2027. Ccurrently it has just over 85%. It is a small population – about 15 million – where 54% live below the poverty line. The indigenous majority live in rural areas, and the largest coverage of 97% is in the capital. There is a considerable con-sumption of firewood exceeding 55%, especially in rural areas. And there in the middle of the forest lies the great challenge of energy access. (In Chapter 5, we will dis-cuss some actions that are being developed in the country.)

NICARAGUAThis other Central American

country has been doing remarkably strong investments in renewable energy. According to the regional index of clean energy in Latin Ame-rica (Climascopio) 2013, this is the third most attractive investment in LAC. Last year, 52% of the energy consumed in the country was from clean sources and the country ex-plored only 5% of its potential in re-newables, which is estimated at 5.8 GW. Information from the Ministry of Energy and Mines (MEM) of the country point out that only Brazil and Chile overcame Nicaragua in 2013. Of all the clean energy in the country, 18% is from geothermal _______________________________________________19 CIER (Comision de Integracion Energetica Regional). Sintesis Informativa Energetica, 2012 (Datos al 2010)

sources, 8% from hydroelectric sources and 8% from biomass. There are many solar projects un-der development, but this has not yet been measured. As a result, the government believes that 90% of all energy consumed in the country will be from renewable sources by 2020. As the country already pro-duces more energy than needed (despite cases of communities lacking energy access in remote areas) , the government intends to export the excess through an


first is the industrial, commercial and agricultural center, where the capital, Lima, is located as well. The mountain covers the Andes and valleys corresponding to 27% of the area. But the Rainforest is the largest expanse of the country, corresponding to 60% of the natio-nal territory. At the same time, this part of the Amazon is the least po-pulated region of the country and where the greatest challenges of energy access are. Peru is currently the last country in electricity cove-rage in South America 19 .

According to David Orosco Zumarán, advisor to the Deputy Mi-nister of Energy of Peru, “locations still in need of electrification have institutions with weak representa-tion and the ones who managed to obtain more resources to this public good did it so due to political patronage. This was only possible because they supported the mayor, the governor or the president. Gi-ven such institutional weakness, it is important to the process of elec-trification to be part of institutional policy and of a business model that negates the possibility of patrona-ge in public policy programs.”. For Zumarán, a possibility would be to conduct an energy program that has characteristics of a service, with a company or institution responsi-ble for it during a certain time – 10 years or more – not just for the delivery of a facility or equipment in a given community.

Furthermore, the expert be-lieves that the deployment of hybrid projects for rural energy access is necessary, which is also the greatest need of the country. That should go beyond the access to energy, but also contribute to education, health, and that the energy generated empower the locals to make productive use of it

and increase their income. In a study presented in 2013

at the Ministry of Energy and Mines of Peru20 , ZUMARÁN and ACOSTA remind us that with the changes in the energy sector in the country occurred in 1992, where there was a separation of distribution, trans-mission and generation sectors to broaden participation of the private sector, there was also a change in the rules. That meant that energy generation would have private participation and the government would be granted the monopoly of the distribution and transmission. The changes have led to a consi-derable increase in the number of users, something around 85% of Peruvian families served in 2011. Government subsidies in order for distributors to maintain affordable rates for low-income populations were key to achieving these goals. There was also an internal cross--subsidy for transmission grids.

In 2001 the Fund for Electric Social Compensation (FOSE) was created , which established dis-counts to users whose consump-tion was less than 100 kWh/month, but with emphasis on consumers having a consumption below 30 kWh/month, especially those living in rural areas.

Later in 2006 a new grant was established with characteristics of joint contribution from all the ma-rket oriented to utility companies, in order to offset the investment in isolated systems. In the same year, the General Law on Rural Electrification made possible the creation of special tariffs for solar systems – SER FV, which offered up to 80% discount.

One would think that with such incentives, there would be no obstacles to the full energy covera-ge in Peru. But there lies a matter of

economic and financial balance of the utilities. Such price systems set an internal rate of return for groups of companies, not for individual companies. According to ZUMA-RÁN and ACOSTA, companies argue that the deployment of solar syste-ms in rural areas always leads to financial and economic unbalance and therefore their commitment to the political consolidation of access to energy has been quite modest.

Moreover, under the current regulations, each distribution utility can only act in its geographic area, and the State bears responsibility for regions with no utilities. Re-sources to meet the obligations of access to energy and the develop-ment of rural electric systems come half from the General Law of Rural Electrification and half from the State Treasury. In 2010, the total amount reached US$ 210 million. However, regional issues and lack of interest from utilities to embra-ce the cause and get involved in the project since the beginning are preventing universal access to energy. There are cases of poorly designed facilities and a general complaint that companies do not adequately meet their potential rural consumers.

To ZUMARÁN and ACOSTA the-re is a need to change the focus – to work not only for electrification, but also for the access to energy in the countryside. Apart from conventional or non-conventional electric systems, it is necessary to “reach them with a more economi-cal alternative technique that fits their end-use energy needs such as lighting, heating, the driving force for productive activity, etc.” The idea is that utilities would bring not only electricity, which most often does not pay off economically, but become energy distributors, brin-

_______________________________________________20 ZUMARÁN, David Orosco; ACOSTA, Edwin Quintanilla. Gobernanza de las políticas de servicio universal de energia: El caso peruano. Ministério de Energia


ging in addition to electricity natu-ral gas and LPG, which would meet the urgent demands of cooking, lighting, propelling power, pum-ping, irrigation and cooling. Such thought makes sense when taking into account the consumption pattern of very sensitive rural are-as, as is the case of Huancavelica (Altoandina region), where 75% of the population consume less than 30 kWh/month.

It is worth stressing that a program of mass-distribution of natural gas is underway in the Al-toandina region, using CNG on the residential grid. And most recently, the 500,000 Solar Homes Program.

Autonomous Photovoltaic Systems Under the coordination of the Ministry of Energy and Mines, the project provides, in addition to the installation of photovoltaic systems, its operation and maintenance for a period of 15 years. This consists of a public-private partnership to install 50 MW of photovoltaic autonomous systems (500,000 systems). It is noteworthy that extra 100 MW photovoltaic systems have been deployed and are connected to the grid. They are funded entirely by private capital, with guaranteed purchase of the electricity generated by the project.

This program is part of the Plan of Universal Energy Access, which has set as a goal of installing 500,000 autonomous photovoltaic systems by 2016. In addition to hou-seholds, schools, medical clinics and other instances of common use are included as beneficiaries of this program.

Business Model for Inclusion of communities lacking energy access

With APP, the power distribu-tion utility receives power from the private operator responsible for the installation, operation and mainte-nance of photovoltaic systems. This operator agrees on an investment contract with MINEM for distributed generation in scattered househol-ds. The ministry is committed to purchase the energy produced. The remuneration of the operator is given by the number of systems installed and in operation and does not depend on the level of solar irradiation21 . Another contract is made between the operator and the public distributor, including obligations on the operation of systems.

The business model has also a cash flow warranty in order to eliminate the cash risks on the side of the compensation party. It is up to the distributor to charge users. Regardless of delays at this point, the remuneration of the private operator would be guaranteed. The costs of distribution will be covered by special charges defined by MINEM 22.

A practice that is being succes-sfully developed since 2009 is the one that ACCIONA Microenergia Peru carries out in the region of Ca-jamarca. Nowadays, this non-profit association, which is promoted and supported by the Spanish corporate foundation ACCIONA Microenergia, is providing basic electricity, with Solar Home Systems, to around 4,000 families living in isolated rural communities where the national grid extension is not planned. By the end of 2013 this association achieved its breakeven point, with sufficient incomes to face its ex-

penses.Besides, those users pay a

monthly fee of USD 3.5, amount lower than their expenses on al-ternative energy elements before having those photovoltaic systems. This is possible by maintaining the economic sustainability of the association; in 2011, after the official recognition of the non--conventional rural electrification, ACCIONA Microenergia Peru was allowed to access to the regulated system and then it applied its fees, considering the cross subsidy from the Electricity Social Compensation Fund (so called FOSE).

In the developed model, the involvement of the communities, through the Photovoltaic Electrifica-tion Committees, is very strong in all the stages of the project: aware-ness, training, representation, equi-pment safety, use monitoring, fee collection, etc. In addition, around 40 users have been trained as local technicians to install isolated pho-tovoltaic systems (more than 3,000 systems installed up to now) and to perform the ACCIONA Microe-nergia Peru’s orders for corrective maintenance.

The objective has been met: that isolated rural communities’ electrification by means of Solar Home Systems is feasible, sustai-nable and affordable is demons-trated.

ACCIONA Microenergia is developing in Mexico too a project for mitigating the social exclusion through the subsidized and micro--funded sale of Small Solar Home Systems, or solar kits. Under a Pu-blic-Private Partnership for Develop-ment (PPPD) with the Government of the State of Oaxaca and the Spanish Agency for International Development Cooperation, ACCIO-

______________________________________________21 ZURAMÁN, David Orosco. Lineamentos de La política de inclusión electrica con sistemas fotovoltaicos autônomos. Ministério de Energía y Minas. Lima, 08/02/201422 The entire process of application of operators and other information are available at http://www2.osinerg.gob.pe/EnergiasRenovables/contenido/1eraSubastaOffGrid.html


NA Microenergia Mexico provides third-generation solar kits to inhabi-tants of isolated rural communities with population of less than 100, where the Electricity Federal Com-mission (so called CFE) has no plans to extend the national grid. Users pay the 50% of the equipment in twelve monthly fees, by an amount lower than their previous expenses on alternative energy elements. To make the initiative sustainable, the model is supplemented with the development of service centers that attend failures and sell com-patible devices.

ACCIONA Microenergia is the only private company developing such projects in Mexico and Peru.

LAWS FOR ACCESS TO ENERGY IN PERU

1992 – Law of Electrical Con-cessions

2006 – Law for the Development of Efficient Generation

2006 – General Law of Rural Electrification - Law of Renewa-ble Energy Resources

2012 – Social Inclusion Fund for Energy (FISE) - Law 29852

D.L. 1002 Legislative Decree for the promotion of investment in electricity generation with renewable energy

D.S. 020-2013-EM, 06/27/2013 – encourages the generation of energy from off-grid solar home systems (autonomous photovoltaic systems)

PARAGUAYLike Brazil, Paraguay’s energy

matrix is characterized by a high su-pply of renewable and local energy. According to the Energy Balance of 2009, 58% of supply came from hydroelectricity, 27% from biomass

(firewood, charcoal and crop resi-dues) and 15% from hydrocarbons. The latter were imported, since the country did not produce oil or natural gas. For fuel, there is a vast predominance of the use of diesel.

When it comes to electricity, almost all of the power produced in the country (99.93% in 2009) came from hydroelectric plants. Two of them were built in part-nership with its neighbors – Itaipu plant with Brazil and Yacyretã plant with Argentina. Only 11% of what is generated for the plants in total corresponds to the electric final consumption of Paraguay. The largest part is granted to Brazil and Argentina, which makes the plants a very important resource for the Paraguayan government. However, an alarming issue, as pointed by the country’s Energy Balance, is that about 32% of the energy entering transmission lines was lost due to technical problems on the grid.

With such a large production of energy, which causes Paraguay to have one of the lowest tariffs on the continent, it would be odd to find that there are still people in the country without access to electricity. But they do exist and are predominantly isolated communi-ties in the region known as Chaco.

In these regions, the main source of energy is wood, due to its still wide availability and the informal market. That makes the country the largest consumer of wood per capita in Latin America.

Although the country has the assurance of supply for at least 30 years due to hydropower, there is already a movement toward discus-sing the energy mix of the future. For instance, in 2010 the National Commission on Energy Efficiency was constituted in order to sup-

port integrated and sustainable development of the energy sector. The Commission is coordinated by the government and is integrated by various institutions involved in the issue, including the National Energy Board. In the National Commission on Climate Change much has been discussed about reduction, mitigation and adapta-tion measures, taking into account the impacts of the energy sector in the emission of greenhouse gases.

Perhaps that is why GIZ, when conducting a study on renewable energy in Paraguay in 2011, sug-gested that biomass is a renewable alternative energy source where there should be a greater effort to diversify the matrix. By the time of the study, over 50% of primary energy demand of Paraguay came from biomass23.

The country does not have a specific law for promoting renewa-ble energy, such as in over 70 coun-tries and in most of Latin America. Perhaps this is due to the country having an energy surplus resul-ting from the two large binational hydroelectric plants. But Paraguay has a very interesting solar and biomass potential, which still lacks government momentum.

URUGUAYUruguay is the country that

produces more energy from re-newable sources, however 50% of its domestic market is dependent on oil, which needs to be imported, since the country has no refinery and all gas consumed comes from neighboring countries. This also makes its energy balance very sensitive. However, this situation did not deter the government and other Uruguayan social actors in developing laws to encourage renewable energy (as mentioned above). _______________________________________________

23 Situación de energías renovables en el Paraguay. GIZ/ Cámara de Comercio e Industria Paraguayo-Alemana. 2011.



For “rural electrification” and “pre-electrification” catego-ries, in which the technological model implies the very construc-tion of rural distribution networks (or mini-grids, where it is more cost-effective) or isolated systems, such as “solar home systems”, electrical power concession pre-rogatives based on the constitu-tional and legal responsibilities established by each country must be considered. Independent ini-tiatives in these categories need to be authorized by the State and

SOCIAL And PrOFESSIOnAL COmPAnIES In thE SuPPLy OF SOLutIOnS

Although the comparative contingency of the population without electrical energy is lower than in the African and Asian continents, Latin America and Caribbean has offered innova-ting and exemplary solutions in terms of energy access related to business models, legislation and regulation, technologies, and funding and management models.

In the previous chapter, we presented a general view of each country’s condition as to these two aspects. In this chapter, we will focus on innovating and

exemplary solutions developed by social and professional enter-prises, which can be replicated in any of the categories of “Ener-gy Access and Available Energy Services” presented in Table 1.

Consider ing that ever y country’s national constitution embraces the rights and res-ponsibilities of power genera-tion, connectivity, distribution, technical standards, costs and pricing, the first step is to define the energy access categories that are subject to the state’s intervention and concession, as well as the kinds of intervention.

Countless init iat ives on the part of community-based social enterprises, social en-terprises and microenterprises were highly impacted as to development and sustainability exactly because they did not take into account the prerogatives each government granted itself through its constitution. Without understanding and taking this important element into account in energy access processes, there is a very small chance of achieving scale without being affected by some government initiative.

Energy Access Initiatives in “Rural Electrification and Pre-Electrification” Categories

by pertinent regulating bodies in order to be established, institu-tionalized and kept sustainable through time.

Both in Brazil and Peru there are records of contributions from social and professional enterprises which caused and still cause positi-ve scale impacts in Latin American countries.

In Brazil, social entrepreneur Fábio Rosa developed a model based on technology, business and com-munity action, which decreased the costs of rural electrification through

power networks in up to 90% of that of traditional standards. In the course of 20 years, it progressively became the preferred model for rural electrification for the poor, at municipal, state, and finally, national levels, through Law 10,438/2002 that later turned into a government program called “Light for All” (Luz para Todos).

Moreover, the model was academically catalogued and vali-dated by the Polytechnic School of the University of São Paulo, which is internationally recognized for the


development of the technical project of Itaipu Binacional, the world’s lar-gest hydroelectric power plant.

In Peru, Pedro Gamio Aita, Vice Minister of Energy in Alan Garcia’s government (2008-2011), coordina-ted the development of legislation that allowed the country to figure in the new renewable energy market through wind and solar energy, small hydropower plant centers and biomass, and on the other hand, to consider microgeneration (whether connected to the grid or not) as an option for providing electrical power to the poor and diversifying the na-tional energy matrix.

As described previously, in the case of the Republic of Peru, the legal framework made it pos-sible to subsequently consider the use of “pre-electrification” systems as adequate for serving the needs of low income populations located in remote or low population den-sity regions. There are accounts of unsuccessful experiences of independent initiatives involving pre-electrification systems in seve-ral Latin American countries.

In the Dominican Republic, as well as in Honduras and Gua-temala, the “SOLUZ” initiative, dedicated to providing “solar home systems” to remote areas of these countries, was highly impacted by national rural electrifi-cation projects carried out by local

governments. Similar accounts come from Argentina and Brazil, where the energy access initiatives through pre-electrification systems developed by social entrepreneurs Silvia Rojo and Fábio Rosa were affected by national electrification plans that completely ignored local and independent energy access initiatives.

National rural electrification plans are always partially execu-ted and firstly carried out where it is possible to extend power networks. However, state media is unclear and only gives information through national rural electrifi-cation programs, creating expec-tation for the arrival of power networks, which are very slow to arrive or never reach remote areas inhabited by low income, low den-sity populations, as mentioned be-fore. This causes negative impact and frustrates the population, who creates expectations based on a promise which will never be kept. The local energy access actions are simply cut short, progressively de-fining the unsustainability of local initiatives. In the course of time, it is possible to see the disappearan-ce of local energy access initiatives while the programs promised by the government have not yet even reached the region.

Practical result: perpetuation of exclusion of communities la-

cking energy access. This is how it has been.

Concluding, energy access projects and programs in “low cost rural electrification” and “pre-elec-trification” (solar home systems) programs have been developed by community initiatives, social en-terprises and microenterprises, but need to be supported or included in qualified legislation related to areas of action (concessions) and funding policies as to the installa-tion of systems and sustainable post-installation maintenance. If these characteristics and needs for integration are not taken into consideration, energy access projects based on this typology become unsustainable. In coun-tries, energy planning activities, electrification programs related to “rural network extension” and/or “pre-electrification”, are subject to “Departments of Energy” or “National Electrical Power Compa-nies”. Generally speaking, these bodies do not have the sensibility or do not understand that imme-diate energy access is a priority, due to the traditional corporative and social culture. Either national legislation, institutions and pro-grams give support to initiatives through national planning, quali-fied legislation and funding poli-cies, or the enterprise is doomed to failure and unsustainability.


Due to the nature of “electric mobility (or semi-mo-bility)” - a fact that technically qualifies systems as portable - as well as the very significant cost difference when compared to the “rural electrif ication” and “pre-electrification” cate-gories, the usable systems and equipment in this category are more adequate for immediate mitigation projects for commu-nities lacking energy access and immediate access to basic elec-trical power services, such as “electrical lighting”. By using the described technology, it is possi-ble to deliver immediate access

mitigating the Exclusion of Communities Lacking Energy Access

and Access to Electrical Lighting

to basic electrical power benefits (lighting, telecommunications, electric portability, radio).

In Brazil, IDEAAS Institute in partnership with Mamirauá Ins-titute (headquartered in the Bra-zilian Amazon) develops socially inclusive projects which use such technologies - “Light for a Better Life” (“Luz para Uma Vida Melhor”) and “Light for Knowledge” (“Luz para o Saber”) projects.

The “Light for a Better Life” project, set up for families who live isolated along rivers, pro-poses to make electrical power available in the “Mitigating the Exclusion of Communities La-

cking Energy Access” category by replacing current electrical ener-gy needs, such as oil lamps, can-dles and disposable batteries, for the use of renewable energy (solar photovoltaic energy).

The electrical energy results obtained with the “Solar LED Mini Kit” are as follows: electrical lighting in five different points, cellular phone and smart phone recharging (USB connection) and battery recharging (with the re-chargeable batteries from the kit) for hand flashlight and radio. The whole system is set up with the “plug-and-play” concept, which allows quick installation (2 hours).


In the region of the Solimões River, as well as in areas of ende-mic poverty, illiteracy rates range between 15 to 30% and are mainly concentrated in the “young adult”, adult and senior categories. The project, which is still in its initial phase, proposes that the govern-ment invest in solar lamps, which become “school equipment”, contributing to the eradication of these illiteracy rates. This is a funding alternative for “access to electrical lighting”, which offers the possibility of achieving scale at municipal levels with the parti-cipation of the City Government.

Another interesting project is being developed by EcoAndina, in Argentina. It is the “Andean Solar Villages” project. This program aims to reduce desertification, recover local biodiversity and mi-tigate climate change by compen-sating wood-burning and bottle gas emissions and spreading the “Solar Village” concept and brand.

The institute offers courses on solar energy use, cooking, heating, drip irrigation through

The “Light for Knowledge” project proposes that the lamps from “access to electrical lighting” be used as school equipment under the responsibility of the school. In this case, both the adults who go to school at night to learn how to read and write, and the children who take the lamps to school to be recharged during class, in order to be used at home to do homework, benefit from this. These lights are small table lamps with a single spot and an 8-hour autonomy, which can be recharged through small solar photovoltaic panels.

solar pumping, dehydrator for commercializing vegetables and fruit, and shower heating, showing the social, health, environmental and economic impacts of this clean energy source in the life of these villages. EcoAndina also developed the Cediera Complex - EcoAndina Center for the Development and Interpretation of Renewable Ener-gy and Environment, in the city of San Salvador de Jujuy. In 2012, the enterprise was awarded by the Central Society of Argentine Architects for the design of a sus-tainable house, also certified by Austria and Germany for its energy efficiency. The house will be the Foundation’s headquarters. Besi-des EcoAndina’s social projects, the Cediera Complex runs a social enterprise for manufacturing solar thermal equipment, such as solar kitchens, parabolic kitchens, solar box ovens and other items.

This turns the Puna region of Argentina into a pioneer in the com-plete use of clean technologies, and such initiatives are suitable for repli-cation in other villages and cities.

www.ecoandina.org


Guatemala, for 20 years, Fundaci-ón Solar has been implementing complete projects for develop-ment, such as isolated micro-hydro plants, photovoltaic systems, biodigesters, and the conscious use of firewood, with the creation

In Central America there are also good examples of actions for mitigating the exclusion of com-munities lacking energy access and offering options for a more productive life in the country for families who live in isolation. In

www.fundacionsolar.org.gt

of appropriate stoves for rational firewood use and family health protection, among other things. The Foundation considers that energy should be the only means for development and quality of life, and not an end in itself.


For these categories, conside-ring the high investment and the regulatory issue related to power distribution concession, the pre-ferred business models are those coordinated and regulated by the government.

Therefore, there is an initial need for a government definition that establishes the regulatory framework and operation and funding conditions under which local agents should operate.

In general, the business models set for this kind of servi-ce are made up of the following components:

•Technical Electrical Installa-tion Model, for network exten-sion and off-grid systems. In this case, the amount of energy to be supplied to users, type of electrical installation and tech-nical rules for distribution and operation are defined;

“Rural Electrification” and “Pre-Electrification” categories:

business models

•Sources of funding to invest-ment in electrical infrastruc-ture: usually public or even “public-private” sources;

•Payment methods for electric power services after installa-tion, and

•Responsibility for the post-ins-tallation maintenance of systems.

We have previously mentio-ned Brazil and Peru’s exemplary development in this field, through the establishment of advanced energy access legislation, funding methods, goals and inclusion models for service providers, concessions, contracts, cross--subsidization and other important elements to be taken into account when developing a national ener-gy access program.

In this study, it was possible to observe that Brazil established

a very well-structured plan, yet lacking in service models for isolated populations or regions unreached by power networks due to several issues (technical, geo-graphic, population density, and other issues). On the other hand, Peru developed a plan that gives much support to isolated commu-nities, but less ambitious as to go-als and deadlines. Therefore, they complement one another when we analyze the development of a more refined and truly inclusive model of universal energy access in Latin America and Caribbean.

The development of struc-tural frameworks based on these two national programs could grea-tly contribute to the development of a model of universal energy access which encompasses neces-sary elements for a feasible and effective universalization.

Technology systems used in these categories have the follo-wing characteristics:

•Possibility of immediate ins-tallation and access to basic electrical power benefits for low income and isolated po-pulations;

•Ease of shipping and han-dling, which is important in re-mote and difficult access areas;

Mitigating the Exclusion of Communities Lacking Energy Access and Access to Electrical Lighting” Category

• Faster provision of electri-cal power services;

•Easy maintenance (carried out by local agents);

•Low cost;

•Offers basic electrical power services;

•Possibility of implementa-tion in a supportive economy system;

•Development of local supply chains, which increases sustai-nability in the medium run, as well as local money circulation.

It is important to take into account that dealing with electrical power and photovoltaic technolo-gy on a daily basis is new to this kind of population. Introducing this new technology means te-chnologically transferring these


people’s energy culture from a non-renewable or scarce and expensive natural resources refe-rence system, such as firewood, fossil fuels and disposable bat-teries, to autonomous energy generation and storage systems.

It involves creating a new production chain, in which it is crucial to develop local culture and capacity, not only for system use, but also for a sustainable post-installation maintenance. Besides the introduction of te-chnical progress, users need to be trained to use systems in a sustainable way, adjusting daily demands to energy production and storage capacity.

Furthermore, “local agents” must be trained to offer basic technical service to users as to occasional failures or directions on how to use the product ade-quately.

Part of these populations are still illiterate, so traditional instruction systems for users are not applicable.

In time, some equipment parts may need maintenance or replacement - usually the battery, on/off switch or bulb (which has a programmed shelf life of about 8 – 10 years).

Minor maintenance issues can be solved through an “ener-gy (or energy and water) commu-nity service/association” model, or through the participation of local social enterprise or microenterprise organizations. These components, which are not expensive or hard to find in specialized markets, will need to be stocked.

Thus, the introduction of technical progress is not only a matter of introducing equi-pment, but “developing local culture on electrical power and

renewable energy”. The final be-neficiaries are part of the chain, but not the only ones who need to be trained and instructed. Therefore, the introduction of “technical progress” needs to be seen as an educational qua-lification and training activity in the technical, operational, ma-nagerial and sustainable social business areas.

The es tabl ishment of a new energy service chain ba-sed on renewable energy and autonomous systems requires professional skills in technology, management, business models, funding and regulation. This is not a difficult activity, but invol-ves transferring aspects related to these areas which knowledge has not yet been mastered by all beneficiaries and participants of the production chain.

Countless civil society orga-nizations in many LAC’s countries and regions have dedicated themselves to the educational and local development aspects of this introduction of technical progress, without which the installed systems and models cannot find the sustainability equation in the medium run.

Comparatively speaking, this is the same kind of challen-ge faced during the introduction of social knowledge and culture on “computer technology”, forty years ago, electricity approxi-mately 100 years ago, or even kerosene lamps approximately 150 years ago.

In the present case, the great difficulty is that it invol-ves poor, isolated, uneducated populations who are excluded from a process that considers the inclusion of those communities, even in a sense of “mitigation”, as a responsibility to be taken

over by the public.In Brazil, we observe that

the social housing program cal-led “My House, My Life” (“Minha Casa, Minha Vida”), as well as other social inclusion programs that follow the “conditional cash transfer” model, are subject to the Ministry of Social Development.

This Ministry does not de-velop an “inclusion of those lacking energy access” program, in which this kind of activity and proposal would be an asset. The beneficial results of these other programs are not expressive in remote places due to the lack of electrical power.

Therefore, the current busi-ness model for the “Mitigating of Communities Lacking Energy Access” and “Access to Lighting” categories counts on actions from civil society organizations, community associations, social enterprises and microenterprises, in order for technical progress to be introduced and maintained sustainable after the installation of systems.

Analyzing the matter of ener-gy access as a priority, based on the United Nation’s review through its “Sustainable Energy for All” document, a desirable activity would be broadening the social and government culture in Latin America countries as to the contributions that this “Mitigating the Exclusion of Communities Lacking Energy Access” model could bring.

In this case, the operational costs of activities related to edu-cation, development of local qua-lification and training courses can be assigned to the state or added to its list of activities to fund.

In the next item, we will deal with this topic in more details.



The search for sustainable energy access funding models for low income, remote populations remains a challenge yet to be solved. The IDEAAS Institute has permanent actions in this sense and has successively been able to address the cost components of an energy access project, as well as classify refundable and non--refundable investments.

IDEAAS, winner of the 2001 Ashoka - McKinsey Social Entrepre-neur Contest, proposed a business plan to introduce a “social busi-ness” for offering the installation of “rural pre-electrification” solar photovoltaic kits through “rental” or “monthly payment”. This model considered the payment to those excluded from energy access ac-cording to their monthly consump-tion of non-renewable energy.

After defining operational and equipment costs and taking into account a 10-year “cash flow” projection, the social business’ performance was evaluated based on users’ monthly payments, and expenses with battery replace-ment, technical assistance and introduction of technical progress.

As mentioned previously, in 2006 IDEAAS repeatedly diagnosed the socioeconomic profile and energy demands of remote popu-lations in the Brazilian Amazon, through the Leapfrog Award gran-ted by The Lemelson Foundation (Portland, USA) and Schwab Foun-dation for Social Entrepreneurship (Genève, Switzerland). It then proposed the implementation of market testing and began monito-ring processes related to monthly payments, operational costs for

InnOvAtIOn In FundIng And PAymEnt

great Amazonian rivers, return on investment and other variables.

After some “adjustments” were made based on the market test, a new market test allowed the following conclusions:

• Considering all the intro-duction of technical progress costs, the “social business” has approximately 5% net surplus per year.

• The introduction of tech-nical progress costs included activities for the development of a new local value chain related to renewable energy, training and qualification for technical maintenance of new technologies, and sustainable post-installation management, through an operational and sustainable business model;

• Including these costs and considering the revenue from a scale of about 2400 connec-tions in four years, the “social business”, although sustaina-ble, presented its break-even point at the end of 6 years and return on investment only after 20 years.

Experts from the Lemelson Foundation, who visited the pro-ject, also analyzed the “business plan” and pointed out that the costs for the development of a local production chain, introduc-tion of technical progress and qualification and training impac-ted the final results of the “social enterprise”. In this case, they su-ggested that these costs be paid by philanthropic funds dedicated to the independent education of

technical and operational post--installation management for the 2400 systems.

Their recommendation was based on the evaluation that the resources applied to education, qualification and training for the development of a diffuse and ge-neric local economic production system could be funded by non--refundable resources, as is the case of philanthropic investments in education.

Therefore, the “social busi-ness” would be responsible for installing the photovoltaic syste-ms and managing them as well as the established production chain in a sustainable way. The action of social entrepreneurs and community associations would be mainly related to activities for the introduction of technical progress, training and qualification of final users and local energy agents.

By separating production chain development costs from the original business plan, the social business model presented a payback period of 12 years and a single-digit internal rate of return. This profile is compatible with renewable energy funding at international community credit institutions, such as Tridos Bank (Netherlands).

The business plan was divi-ded into two other plans - one for “production chain and local qualifi-cation development” and another for “energy access and renewable energy social business develop-ment”. Time after time, the busi-ness plan did not find funding for increasing its scale. This happened between 2006 and 2009.


With the regulation of distri-buted microgeneration connec-tivity in Brazil in 2012, through ANEEL Resolution 482, IDEAAS added another enterprise to the previous business plan, with the aim of generating permanent fun-ding for the development process of renewable energy production chains, distributed microgenera-tion and energy access. Instead of using philanthropic donations, IDEAAS proposed investing in renewable energy micro plants connected to the grid, supplying energy to connected consumers. These consumers offer economi-cal return to connected energy ge-neration enterprises, which begin to provide permanent resources for the funding of educational acti-vities related to energy production chain development.

Because this model brings to-gether three different enterprises which work jointly, the adequate business model became a type of

“consortium” between three types of institutions:

• The “Power Plants of Goodness” (Usinas do Bem), which generate resources for funding the development of renewable energy production chains in remote places and especially activities related to education, qualification and training for the sustainability of the new production chain; • NGOs and Social Entre-preneurs, responsible for the qualification process and deve-lopment of community-based renewable energy productive chains, and• Social Businesses for Ener-gy Access and Renewable Energy Products, responsible for providing and maintaining electrical exclusion mitigation equipment (solar-LED nanosys-tems) and electrical lighting access equipment.

The interaction between

companies and their sustainabi-lity was completely developed through a business plan called “Consórcio Energia Renováveis da Amazônia”, proposed by IDEAAS in 2013.

If traditional funding ins-titutions, such as development banks, government agencies for rural electrification programs and cooperation programs do not change their standing, any initia-tive to boost inclusion activities and projects for those lacking of energy access will need perma-nent non-refundable investments for the education, qualification and development of the local distributed microgeneration pro-duction chain.

However, it is an alternative that has not been sufficient to secure the inclusion of energy access for populations who have been historically forgotten and marginalized in the economic development process.


When it comes to direc-ting funds and investments to energy access, we must firstly define which areas to invest in. According to the business model and funding studies carried out by IDEAAS during 12 years, there are different types of investment and funding needs, which vary according to the actions taken for executing the energy access project.

There is a need of resour-ces for paying for the teaching and development processes of a new social culture connected to renewable energy, and a new

Proposals for Energy Access Funds

value and production chain, which involves qualification and training in several areas (technology, business, legal and regulation, management). Since results are not immediate, this kind of activity needs to count on philanthropic education funds or public funds directed to education and intro-duction of technical progress.

In terms of equipment, we can count on rotating funds, which initially stock up equipment made available to users and are later paid for with the money they saved from not having to pay for fossil fuels.

Another possibility presented

was the investment in connected microgeneration plants, which start generating permanent re-sources that fund the educational activities described previously.

Taking into account the in-vestment profile and application, it is possible to characterize funds and investments as follows, accor-ding to the local intervention area.

The table below indicates what types of funds to be pursued for each kind of intervention, which will provide universal sus-tainable energy to low income populations in the form of “energy emancipation”.


_______________________________________________24 Application of social and low carbon technologies with the use of clean energy: a contribution to sustainable development and climate change mitigation. CD.ROM. IDER: Fortaleza, 2013.

CANADIAN COOPERATIONSince 1996, the Canadian Coo-

peration has financially contributed to the Latin American Energy Orga-nization - OLADE - for the execution of studies and projects. An important project initiated in 2012, entitled “Sustainable Energy for Latin Ameri-ca and the Caribbean”, whose goal is to contribute to the increase of the continent population’s access to clean and sustainable energy, thus stimulating economic growth and reducing poverty levels.

The project supports OLADE member states, in order for them to develop projects that decrease the effects of climate change in the energy sector. This is carried out through a Technical Assistance Me-chanism developed by OLADE. It is a huge project, but its resources de-pend on the action of the countries involved and the search for other funding bodies, once the OLADE--Canadian Cooperation project only has resources for the first stage.

Another initiative resulting from the Canadian Cooperation contribution is a virtual data bank available on OLADE’s website, cal-

International initiatives and funding

led “Expertos en Red - Networking Experts”. It is a platform of technical networks from the Latin American and Caribbean energy sector, which allows the dialogue and exchange among experts, as well as publica-tions and opportunities for debating. http://expertosenred.olade.org

U.S. COOPERATION Recently, a consortium for-

med by six NGOs and two small companies, with the support of USAID/Brazil - U.S. Agency for International Development, deve-loped a wide range of small clean energy generation projects in practically every region of Brazil. The actions of “Consórcio Energia Limpa” range from the construc-tion of a Learning Center for Re-newable Energy in the rural region of Rio Grande do Sul to the use of portable electric power charged by solar energy in the heart of the Amazon. In this consortium, the institutions became acquainted with projects developed by their partners and contributed with te-chnical knowledge for the success of the program.

The program projected and implemented support methodo-logies for the application of clean renewable energy, including con-tribution to public and regulatory policies for the promotion and management of sustainable ener-gy and constructive responses to climate change issues. The acti-vities comprised environmental protection with the reduction of greenhouse gas emission and preservation of biodiversity, reco-very of degraded areas, creation of small and microenterprises, inco-me increase, access to high-quality social services and agricultural production increase, all of which associated to the use of renewable energy and energy efficiency.

Here are the results pre-sented during the three years of USAID support24:

-Construction of a Learning Center for Renewable Energy in Santo Antônio da Patrulha/RS, coordinated by IDEAAS - Institute for the Development of Alternative Energy and Self--Sustainability.


-“Casa Girassol” Project - two qualification centers in the state of Ceará, coordinated by IDER - Institute for Sustainable Development and Renewable Energy 25.

- Installation of 26 thousand eco-efficient stoves in 112 cities in the state of Ceará, under the responsibility of IDER. This project reached 120 thousand people, earned certification from the Banco do Brasil Social Technology Foundation and was a finalist for the Millenium Deve-lopment Goals Award. In 2010, the project won the House Pla-net Award from the architectural magazine “Casa Claudia”, third prize in the FINEP Innovation Award, Social Technology cate-gory for the Northeast Region, and the Ford Environmental Conservation Award.

- H2Sol and Pimenta Rosa pro-jects, in the state of Alagoas. Ecoengenho Institute, from the city of Maceió, developed and implemented several social technologies in the pepper pro-duction and extraction chain, aiming to encourage the use of solar thermal and photovoltaic energy for processing agricul-tural, agroforestry and farming products, seeking to obtain energy efficiency, added value and sustainability for produc-tion chains. An artisan proces-sing plant for pink peppercorn was built in Southern Alagoas (city of Piaçubuçu), with the same vision of productive ener-gy use for income generation.

-Social Technology for the Ama-zon Biome, with a solar photo-voltaic water pumping system in Tefé, in the state of Amazo-

nas, coordinated by Instituto e Sociedade Mamirauá; These organizations work with the Amaná and Mamirauá sustaina-ble development reservations in the mid-Solimões region, one of the Amazon basin rivers.

-Oven efficiency improvement for flour mills in the state of Alagoas, carried out by EDS. Cassava flour is produced all over the country, many times with the use of old ovens that harm the health of workers. The results of the proposal were reduction of firewood use, smoke and work environment temperature.

-Community-based factory for drying fruits with solar dryers in the state of Ceará, built by IDER.

-Development and application of the “Bakana solar” solar LED mini kit designed by IDEAAS and distributed in Amazonas with the support of Mamirauá.

-Energy Efficiency Project for ernando de Noronha, in the state of Pernambuco, coordi-nated by IDER . The creation of a solar energy plant should reduce the consumption of diesel oil at the present thermal energy plant. At the same time, a battery charging system for the island’s electrical vehicles was developed.

-Promotion of the use of bio-digesters in dairy farms in the state of Minas Gerais, through the Sustainable Milk Project promoted by the NGO Consci-ência Limpa.

-Socio-productive clean energy agriculture and agroforestry bu-siness models. Installation of a photovoltaic lighting system for

the Artisan Association of Coa-racy, in the Amanã reservation in the state of Amazonas.

Besides these products, the work promoted by “Consórcio Energia Limpa” was important for promoting technical education and qualification, which bring knowledge and autonomy to Amazonian communities, many of which are considered isolated. Refresher courses on the use of photovoltaic systems were given, as well as radio program produc-tion workshops on renewable energy and climate change, the-matic workshops for rural and urban teachers, and production of educational material on ener-gy for use in rural schools, all of which are important reproducers of knowledge.

The U.S. cooperation agency had a hand in the creation of Renove, and although it does not have any renewable energy and microgeneration projects in Brazil in the present, it continues with trilateral cooperation to take successful Brazilian experiences to other countries with similar needs, as occurred in the recent agreement with the government of Honduras. This trilateral agree-ment will start in early 2015 for the duration of two years.

EURO-SOLAREuro-Solar Program was de-

veloped by the European Union in eight Latin American countries (Bolivia, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay and Peru), with the goal of taking exclusive community use equipment to rural communities without access to electrical energy. In total, 600 communities were re-ached, which brought direct bene-

_______________________________________________25 These centers offered technical and qualifying courses in renewable energy for people from every region of the country. They also developed and published material, such as guidebooks, technical manuals, scientific and academic studies.


fits to 300,000 people. Each kit was made up of three systems: power generation, communications and health care. The first system had a photovoltaic panel, and whenever possible, a wind turbine, a set of gel batteries, control panel, battery charger and a shed for battery protection. In the communications system, each community received five laptops, a projector , a mul-tifunctional machine, a satellite machine and a modem for Wi-Fi or satellite Internet connection. Finally, the health care system included a water purifier and a refrigerator. It took 76 months to implement the systems and 36.4 million euros were invested in the program. 20% of the total was funded by government ministries connected to the program in the countries where it was carried out. At the end of the project, the conclusion was that energy access promoted the development of basic education and health servi-ces, boosted the development of

new productive activities, made communication easier since 100% of Internet connections were by satellite or Wi-Fi, fostered the use of clean energy, and most impor-tant of all, can be easily replicated. (http://programaeuro-solar.eu/el-programa/descripcion-general)

REEEPRenewable Energy & Energy

Efficiency Partnership is a public--private institution headquartered in Vienna, that has already funded 180 renewable energy projects in 58 countries. However, its main focus is to develop projects in de-veloping countries and emerging economies, with the goal of acce-lerating the clean energy market. Moreover, the institution main-tains a large data bank supplied by studies carried out in the countries where it operates, in order to give assistance to businesses, investors and governments in decision--making processes. It encourages successful clean energy models

in developing countries, funds projects that support concrete ac-tions and promote thematic, sec-torial and regional understanding. Among the projects funded by the institution are studies related to normative and public policies, bu-siness models and funding. REEEP is interested in innovative services and data services with information on the evolution of clean energy, thus betting on the creation of new knowledge.

One of the services offered is the REEGLE platform, a clean energy portal (www.reegle.info). The platform offers energy profiles for each country, which is why it reaches over 200 thousand acces-ses per month.

It is divided into five regional secretariats and one international secretariat. The Regional Secre-tariat for Latin American and the Caribbean is headquartered in Wa-shington together with OAS. This secretariat has 34 member states.

Since 2003, REEEP issues


international calls for proposals. These calls are funded by govern-ments, mainly by the United King-dom, Norway and Australia. On its 10th call, in 2014, REEEP offered ten million euros. There are two incentives: traditional incentive - up to 150,000 euros for projects that last up to 12 months, and 250,000 euros for projects with large-scale potential, that can es-tablish other types of cooperation and attract private investment.

In Latin America, the pro-gram finances the following projects:

-Brazil - Alternative energy plan for 27 small rural counties, in partnership with GCV

-Brazil - Promotion of the of renewable energy and energy efficiency in micro and small dairy and flour enterprises in the Northeast. Partner - EDS Sustenergy

-Brazil - Sustainable energy enterprise in the Amazon - in-crease in scale of a business model that offers access to renewable energy in isolated and remote zones of the Ama-zon, through the creation of a company specialized in servi-ces. Partner - IDEAAS

-Peru - The initiative of inclu-ding communities lacking of energy access in rural areas through the promotion of clean energy business models (solar heaters, greenhouse improvements, etc.). Partner - MicroEnergy International

-Peru - Expansion of business models to distributed energy, with the aim of increasing the scale of a replicable and self-sustainable model for the distribution, marketing and fun-ding of clean energy products. Partner - PowerMundo SAC

IDB

The Inter-American Deve-lopment Bank is one of major investors in small-scale renewable energy projects. It carries out stu-dies in countries in which it has interest in developing technology and market. The institution funds large projects, such as wind farms and biofuel plants, but is very interested in the diversification of energy sources and integration of the continent’s countries through energy. This is why it aims for pro-jects that can be reproduced and increased in scale. The bank funds projects all over the continent (http://www.iadb.org/es/proyec-tos) , from loans and donations to investments and even pledges. IDB also invests in research and development in many different areas, from energy to overcoming poverty, climate change effects to gender equality. (www.iadb.org)

AVINA FOUNDATION Avina intends to contribute to

concrete and relevant changes for a more sustainable development in Latin America, giving value to public goods and taking action for the transition into a new economy with social progress. Therefore, it

creates and supports cooperation actions for improving connections between entrepreneurs, enterpri-ses, civil society organizations, uni-versities and governments. Among other themes, Avina is motivated by matters concerning sustainable cities, migrations, extractive indus-tries, American biomes, such as the Amazon and the Gran Chaco, promotion of renewable energy and guarantee of access to water.

Specifically regarding energy, Avina contributed to the creation of Chile’s and Argentina’s Energy Scenario Platform, of Uruguay’s Mesa Solar and of the Latin Ame-rican Platform for Sustainable Ener-gy and Equity, headed by Renove. The foundation also has important partners, such as OAK Foundation and Chile’s Fundación Futuro La-tinoamericano. (www.avina.net)

CAFThe Development Bank of

Latin America, former Andean Development Corporation, has the mission to promote sustainable development and regional inte-gration. In the last term, it directed its energy funding to renewable and nuclear energy with focus on innovation. Thus, besides having great enterprises, the bank seeks to develop high-quality studies in this sector, increase the articula-tion of national and regional ne-tworks, support the development of renewable energy and energy efficiency, and contribute to insti-tutional development and creation of public policies. (www.caf.com)



Based on a perspective inten-ded to provide universal access to sustainable post-installation elec-trical energy, even if at minimum levels, the suggestion of possible interventions should consider se-veral aspects previously presented.

Among them we can mention the following:

•Amount of energy to be delive-red and expected results;•Possible activities and responsi-bilities of each sector, according to the amount of energy to be delivered;•Levels of investments to be made and how to deal with the

POSSIbLE IntErvEntIOnS

types of Interventions, results and time Limits

invested capital (redemption period for the investment, con-siderations on the impact of decrease of public investments, tax collection increase due to local community mobilization, separation of expenses related to “development of culture”);•Time limit for the establishment of interventions in the subconti-nent;•Business models to be establi-shed and prioritized;•Intervention proposals and inclusion of agents in such pro-posals;

Previously, we made it clear

that the definition of energy supply levels, technical models, introduc-tion of technical progress activi-ties, investment funding models, post-installation sustainability, and operational models are mandatory components to be considered when developing a proposal for possible intervention.

The following table lists these components, which allows us to define the type of intervention to be made, desired results, time limit, impact, risk and possible financing funds needed to obtain a situation of “universal access” to energy in the American continent:

INTERVENTION DEMONSTRATIVE AND RESULTS FROM THE TYPE OF ENERGY SERVICE INTENDED TO BE OFFERED TO THE TARGET AUDIENCE


The table indicates that there are different intervention areas, time limits, risks, agents, and fun-ds to deal with, as well as impacts.

The interventions are also carried out at different levels, such as public sector, private sector, and population.

As already evidenced, tradi-tional logic for the extension of energy services in general are subject to service logic for sites with larger population density and economic activities for funding both the investment in electrical service infrastructure as well as in post-installation maintenance.

In this way, although the logic may go through public planning, it is strictly economic and the benefited social groups are those already included in socioeconomic processes. Therefore, in general, the population lacking electrical energy remains the poorest of the poor and on the outskirts of the investment logic for energy infrastructure and energy services, regardless the planning having

coming from public planners.Although government plan-

ning (for the expansion of energy infrastructure in each country) is very important, there is a lack of inclusion of those lacking energy access and energy emancipation policies for populations who are excluded through the inclusion and use of a new renewable ener-gy matrix. This conclusion comes from the citizens themselves, from social entrepreneurs, community leaders and other social fabric representatives.

Taking Brazil as an example, we observe that the dedicated ini-tiative of a social entrepreneur was important and decisive for broade-ning society’s and governments’ understanding concerning the importance of inclusion of those lacking energy access 26 . Following the implementation of demonstra-tion projects and knowledge and demonstration-scale organization and validation, this country with continental dimensions became the first developing country to

reach energy access levels and qualified public policies identical to those of developed countries. Though not on such large scales, other similar and just as signi-ficant examples in the field of durable and sustainable clean energy access to low income po-pulations have been presented by many other Brazilian and Latin American civil society members and organizations.

With the passing of de-cades, these institutions have become national and interna-tional references due to their persistence and exemplary work and knowledge in the field of clean energy access for excluded populations. Governments, ideo-logical and seasonal cycles have gone by, but these institutions have maintained their activities, becoming an example on the one hand, and on the other, re-presenting the most permanent voice in favor of the population lacking electrical energy, who are also the poorest of the poor.

As a protagonist in the energy access process for the poor population in Brazil and seeing that the cultural absorption of energy services universalization as a citi-zen right took 20 years to become a policy, social entrepreneur Fábio Rosa began to consult peers from Latin American countries about the possibility of creating a “Platform of Practitioners” for the simulta-neous exchange of experiences and group evolution based on each individual’s knowledge, and, most of all, under the common vision of turning the American continent into the first continent on the planet to

the Establishment of a Latin American Platform for rE

be free of darkness.From the beginning, AVINA,

IDEAAS and RENOVE joined the initiative and on April 26, 2012, a meeting was held which resulted in the creation of the “Latin American Platform for Sustainable Energy and Equity” (PLESE).

This first meeting,, held in IDEAAS’ “Learning Center for Re-newable Energy and Decentralized Generation”, in Santo Antonio da Patrulha, state of Rio Grande do Sul/Brazil, took on the mission to promote effective technological and political proposals and so-lutions that favor access to sus-

tainable energy services in Latin America, in response to the United Nation’s proposal of achieving universal energy access by 2030. Goals:

-To share experiences, techno-logies and intervention models for furthering access to energy; -To strengthen its members and their advocacy capacities;-To take the stand as a Latin American interlocutor for the promotion of sustainable ener-gy access before governments, international organisms, multila-teral cooperation agencies and global networks;

______________________________________________26 Experience narrated in BORNSTEIN, David. How to Change the World – Social Entrepreneurs and the Power of New IDEAAS, Chapter 3; Oxford University Press: New York, 2004.


-To favor advocacy processes in sustainable energy access public policies in participating countries;-To promote the diffusion of renewable and decentralized energy.

Subsequently, under the co-ordination of RENOVE and with the participation of AVINA, REEEP and Fundação Parque Tecnológico de Itaipu, a second encounter was held with social entrepreneurs and civil society organizations on Sep-tember 19, 2013, during the “4th Mi-crogerar - Latin American Seminar on Distributed Microgeneration”.

This encounter consolidated PLESE by charging RENOVE with the responsibility of the executive se-cretariat and a coordinating group represented by institution repre-sentatives from Argentina, Brazil, Colombia, Guatemala and Peru27. Based on the documents produced in these encounters, we can see a common interest of reaching universal energy access for the rich and poor by 2030, according the United Nation’s suggestion in its initiative called “Sustainability Energy for All”.

PLESE includes two organiza-tional and functional conditions which contribute to its functionality:

•RENOVE is responsible for the PLESE Executive Secretariat, by decision of the assembly held in Foz do Iguaçu, in 2013. •RENOVE was founded in 2000 and is completely institutionali-zed as to its statutory situation, election of members, elected board of directors and head-quarters in place.•PLESE members are connected to non-governmental organizations which mission is local development through renewable energy, energy access and promotion of sustaina-ble development.

Additionally, PLESE, as well as RENOVE, support countless institu-tions which have become historical regional references due to their pioneering nature, social and te-chnological innovation, and social business models in energy access and use. The table below presents some PLESE elements that are re-ferences due to their development of “energy access” and “renewable energy” activities, according to area and country.



AREA OF SOCIAL CULTURE AND GOVERNMENT

Interventions in this area are carried out through the develop-ment of social culture in general and of the government. The goal is to progressively structure public policies so that consistent projects can reach the poorest of the poor through policies that encompass this representative portion of the rural population in many coun-tries. The objective is that after broadening the awareness of society in general and of local go-vernments through the demons-tration of exemplary projects and specific knowledge transfer, it will be possible to establish structural national plans and programs in the field of energy access (rural elec-trification and pre-electrification), with the use of renewable energy and distributed microgeneration.

This kind of intervention also involves the development and mo-dernization of legal frameworks (legislation and regulation) for the introduction of policies related to social tariffs, cross subsidies (when possible), inclusion of renewable energy in the energy matrix, increase in the use of distributed microgeneration and parallel projects for the productive use of energy.

The profile for this kind of program demands medium and long-term planning and govern-ment policies with quinquennial reviews and bi-annual adjust-ments. On the other hand, these

rECOmmEndAtIOnS And COnCLuSIOnSThroughout this paper, we worked on two areas which call for intervention in

order to achieve inclusion of those lacking energy access

actions support other inclusion programs, offer better conditions of quality of life to this specific portion of the population, increase the family income of beneficiaries, and develop inclusive markets, entrepreneurship, partnerships, among other things. Eventually, this process is an opportunity for personal and community develop-ment and produces communities that have more resilience, gene-rally speaking (climate change, economic changes), independen-ce and sustainability, not only in regards to energy.;

AREA OF SOCIAL DEVELOPMENT BASED ON INNOVATION AND

CITIZEN AND COMMUNITY PARTICIPATION

Interventions in this area are based on joint initiatives of community associations, social en-trepreneurs, micro entrepreneurs and other constituents of the inter-national community, for the pro-motion of universal energy access through innovating models; The strengthening of public policies and other national commitments are always part of these agents’ agenda. In this case, the influence over public policies is focused on social inclusion policies in social development areas. This type of energy service falls into the cate-gory of “Mitigating the Exclusion of Communities Lacking Energy Access” and “Access to Electrical Lighting”. These technologies ini-

tially offer immediate social and family benefits, the possibility of local and community development in terms of organizing the local production change, and finally, the opportunity for developing innovating and inclusive social businesses from the local pers-pective. Social enterprises and entrepreneurs contribute in terms of the introduction of adequate technological models and their use in the creation of social busi-nesses and the strengthening of a supportive economy. In the end, the process delivers the benefit of mitigating the exclusion of com-munities lacking energy access, on the one hand, and on the other, stimulates the development of a new sustainable production chain based on renewable energy and new technologies, allowing the activation of the local economy.

In the case of the second model, the intervention itself has a strategic meaning that goes beyond the benefit of access to electricity. The introduction of technical progress is accompa-nied by a strategy for proposing human community development through the construction of self--management abilities of the very beneficiaries. For populations in situations of extreme poverty, “conditional transfer of material” could be provided, in which the condition is the participation of beneficiaries in personal and community development proces-ses, with the aim to increase local


resilience and self-management capacity. Throughout the process, besides being the beneficiaries, the participants become protago-nists of the very transformation process of the social energy matrix. Learning and experiences causes each individual and the community to increase “progres-sive emancipation”, in which they are no longer the “target audien-ce”, but “protagonists” of change and inclusion.

Therefore, if on one side the amount of energy is not as great as that offered in the rural electrification and traditional rural pre-electrification model, on the other side, the portion of human and community develo-pment is substantial. Access to modern technologies and know-ledge associated to the capacity of community self-management are decisive elements for proposing truly “sustainable” and durable inclusion. In this process, the next

steps toward complete energy integration through progressive social inclusion and reduction of extreme poverty levels are taken, including energy poverty. This emancipation process occurs in a more sustainable and durable way when beneficiaries become protagonists of their own destiny.

When the differences be-tween models of access, the possibilities and limitations of each of them and complementa-rity among them are conceptually clear, it becomes much easier to suggest initiatives that anticipate the process of inclusion of energy access in LAC.

Citizen-based initiatives should be grounded on a propo-sal that reaches more vulnerable, forgotten and isolated populations, such as indigenous populations in the subcontinents and those spre-ad out over the great inhospitable geographical spaces. We refer to the international Amazon, the Gran

Chaco, the Andean plateaus, Cen-tral America’s high and dry moun-tain ranges, The austral conditions of the South American continent, the Brazilian Sertão and Cerrado.

If access to electrical lighting is important to beneficiaries, the opportunity of learning with the process is also important. PLESE constituents dedicate themsel-ves to this matter by right of the missions of their institutions. The desired business model profile is one that is simultaneously inclusi-ve, sustainable and independent of a non-renewable and expensive fossil source.

At a first moment, it is de-sirable to organize knowledge and promote interaction between different experts and areas (tech-nology, social methodologies, bu-siness and management models, sustainability and emancipation protocols), in order to professio-nally format intervention models.


When these items are addressed, we believe that it will be possible to establish an agenda that will allow us to declare the American continent as the first continent “without “darkness” and “social exclusion”.

These are the main topics and suggestions for the conclusion of this study. They indicate the next steps to be taken for providing electrical inclusion of energy access to the poor in Latin America and the Caribbean.

recommendationsUnderstanding and selec-

ting adequate technologies and methodologies, social business models, human and social deve-lopment processes, funding and sustainability mechanisms that can be professional applied to all Latin American territory is imperative in a search for a large-scale possibility and continental social impact.

In this respect, it is important to have a preparatory stage followed by a stage of methodology and techno-logy confirmation.

The integration among PLESE members is also important, consi-dering the many professional areas involved in the same process of achieving energy access.

Simultaneously, the matter of raising awareness in the public and private sectors so that they join civil society’s effort also becomes a man-datory condition. It is imperative that these sectors also participate in the process in order for it to be effective.

For instance, as a multisectorial platform focused on energy access and on the increase of distributed generation connected or uncon-nected to the grid, PLESE should be viewed as an opportunity for social inclusion and the development of a new sustainable and democratic production chain. This is the case because it transforms a sector which is currently focused on “centralized generation-transmission-distribu-

tion” (monopolistic design) into a more democratic market sector with more agents and participants.

Issues that gradually appear with the scaling challenge will be solved by these agents, such as logistics and distribution, funding, communication policy, medium and long-term planning, public policies, etc.

In this sense, PLESE can work on the matter of convincing these other agents, as well as progressively legitimizing the condition set in its very name: “Platform”.

An energy access platform implies the integration among sec-tors, and furthermore, among the different areas of knowledge.

In order to move forward based on this diagnosis and recommendations, PLESE would have to advance in the following aspects:

a) Strategic 5-year plan;b) Executive Project for integration among members, thus consolidating technical models, social metho-dologies, business models, funding, basic energy access legislation and regulation, creation of national and regional reach programs. This process allows the buildup of references for replicability;c) Formation of a multisectorial observers’ committee;d) Plan for increasing investors and funders;e) Communication Plan;f) Development and evaluation of integrated projects between members, aiming for intersectorial com-plementation;g) Knowledge cataloguing;h) Integration with experiences from other continents, in order to broaden knowledge on problem reso-lution (interaction with other initiatives, networks and platforms dedicated to the same issues - electrical inclusion of energy access and renewable energy);i) Advocacy and national public policy qualification projects in energy access for the LAC region, within the scope of the Ministries of Energy and ministries in the field of development and social integration;j) Establishment of strategic partnerships such as OAS, cooperation agencies, multilateral partnerships, development banks, climate change programs;k) Consolidation of an Executive Secretariat and a technical staff;l) Project for attracting and diversifying platform participants;m) Scale project in subcontinents;n) Medium and long-term sustainability strategies for the initiative, increasing funding sources and methods.



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ZOLEZZI, Eduardo. Experiências latino americanas en El desarrolo de proyectos de electrificación rural: experiência Del Banco Mundial en Electrificación rural en El Peru. 2010

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LIST OF ACRONYMS AND ABBREVIATIONS

ANEEL – Brazilian Electricity Regulatory Agency / Brazil

LAC – Latin America and the Caribbean

AVINA – Avina Foundation

IDB – Inter-American Development Bank

CAF – Development Bank of Latin America

CO2 – Carbon dioxide

Ecoengenho – EcoEngenho Institute

GIZ – German Federal Enterprise for International Cooperation

GW – Gigawatt

IBGE – Brazilian Institute of Geography and Statistics

IDEAAS – Institute for the Development of Alternative Energy and Self-Sustainability

IDER – Institute for Sustainable Development and Renewable Energy

MEM – Ministry of Energy and Mines (applied to various countries)

MDA – Ministry of Agrarian Development / Brazil

MME – Ministry of Mines and Energy / Brazil

MINEM – Ministry of Energy and Mines / Peru

MW – Megawatt

PERMER – Renewable Energy in Rural Markets Project / Argentina

GDP – Gross Domestic Product

PSA – Health and Happiness Project

PTI – Itaipu Technological Park

OLADE – Latin American Energy Organization

RENOVE – National Network of Civil Society Organizations for Re-newable Energy

SE4ALL – Sustainable Energy For All

SER FV – Special rates for solar energy / Peru

SIAPAC – Social Impact Assessment and Policy Analysis Corporation

SSEE – Energy Secretariat of Argentina

OAS – Organization of American States

UN – United Nations

Unila – Federal University of Latin American Integration

USAID – U.S. Agency for International Development


An Iniciative:

Organized by:Fábio Luis de Oliveira Rosa

Alessandra da Mota Mathyas

Sponsored by:

Revista plese boneco 8 web

Documents

energy access initiatives

inclusion of energy

energy access funds

clean energy

nonrenewable energy

terms of energy

innovative energy solutions

energy challengesin