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Ellen S. Bomasang APEC Village Power Workshop November 7-10, 2004

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Presentation on theme: "Ellen S. Bomasang APEC Village Power Workshop November 7-10, 2004"— Presentation transcript:

1 The Philippines AMORE Project: Renewable Energy as a Catalyst for Social and Economic Development
Ellen S. Bomasang APEC Village Power Workshop November 7-10, 2004 Hanmer Springs, Canterbury, New Zealand

2 Winrock International
Private non-government organization Currently implementing more than 160 projects around the world Headquarters in state of Arkansas Project offices in more than 40 countries Energy programs based in Arlington, Virginia

3 Winrock’s Core Programs
Clean Energy Agriculture Forestry and Natural Resource Management Ecosystems Services Leadership Development Volunteer Technical Assistance  

4 Clean Energy Group (CEG)
Premise: Energy is a crucial input to development, and its growth can be met in an environmentally sustainable manner Goal: Increase the use of environmentally sustainable renewable energy (RE) services in a manner that enhances socio-economic development

5 CEG Products and Services
Technical Assistance Project and program preparation and implementation/management Policy analysis and guidance Institutional capacity building Business advisory services Education and outreach Financing facilitation

6 Clean Energy Group (CEG)
Focus on Community mobilization and Building local capacity in RE Accelerating RE commercialization and market development Improving access to rural energy services Focus on socially and economically productive applications Facilitating industry linkages Renewable Energy Project Support Office (REPSO) network in Brazil, Guatemala, Nepal, India, Indonesia, South Africa, and the Philippines In keeping with its mission of alleviating poverty around the world, Winrock established its Clean Energy Group (CEG) in CEG global activities aim to increase the use of renewable energy by providing technical, political, and market-oriented assistance to public and private sector organizations to deploy commercially viable renewable energy technologies and build long-term local capacity. A focal point for Winrock’s efforts to expand the awareness and use of clean energy technologies has been the establishment of an international network of in-country project offices. Each locally managed office is known as a REPSO: Renewable Energy Project Support Office. Winrock has REPSOs in Brazil, Guatemala, India, Indonesia, Nepal, the Philippines, and South Africa.

7 Off-Grid Renewable Energy
Alliance for Mindanao Off-Grid Renewable Energy (AMORE) Program

8 Background on Project Area
One of poorest regions, lowest level of public services (e.g., electricity, education, water, health) Conflict area with peace and order problems Former separatist rebel communities, long-time rebel soldiers attempting civilian lives and livelihoods Some areas still contested/subject of peace negotiations High risk of violence, including political, inter-clan conflicts, robbery, kidnapping Heavily armed population with military weapons Many private companies limit activities for safety and security reasons

9 AMORE: Mission Statement
Contribute to peace and development initiatives in Muslim Mindanao by improving the quality of life in unelectrified rural communities through sustainable renewable energy projects and effective community organizing

10 AMORE: Project Objectives
Support electrification of 160+ rural communities (barangays) in Mindanao using renewable energy systems for lighting, productive uses, and social infrastructure Support peace process by working with former rebel communities for social and economic development Project duration: February 2002 – December 2004

11 AMORE Sites

12 Stakeholders U.S. Agency for International Development (USAID)
Philippine Government, Philippine Department of Energy (DOE) Autonomous Region of Muslim Mindanao (ARMM) Winrock International (project implementer / manager) Mirant Philippines (private sector donor)

13 Stakeholders Beneficiary communities
Sub-grantees/subcontractors (PEI, YAMOG, MDFI, YMFI, SIBAT, SRE, MUFTI, IRG-P, NREL, WorldWater, NMSU Other Philippine partners (rural electric cooperatives, Philippine Government agricultural, fisheries, micro-credit, SciTech, power sector agencies, and private foundations) Stakeholders have complimentary goals that need to be balanced: project cannot be focused just on renewable energy development and RE market development

14 Stakeholders’ Interests/Goals (1)
USAID and Philippine Government: Support peace & development in Mindanao, ensure communities benefit, support clean energy development Philippine DOE: Electrify all barangays in country, with at least 30 households served in each barangay ARMM Government: Support development, convince residents that peace accord & regional government provide benefits Mirant Philippines: Help meet its commitment to DOE of supporting electrification of 1,000+ communities

15 Stakeholders’ Interests/Goals (2)
Beneficiary communities: access to improved energy and other services, social and economic development Winrock: Support peace & development, effectively implement project while balancing stakeholders interests Compromises necessary due to competing goals: Focus on number of barangays, not full electrification of barangays; Focus on community organization & social, economic & institutional development instead of exclusive focus on energy systems

16 MIRANT Philippines Largest independent power producer (IPP) in Philippines Mirant funds rural electrification, in part as a legal obligation, in part as corporate donation Providing more than $1.5 million in donations (approximately $13,000/barangay) Cooperation with Winrock under AMORE supports the Philippine DOE’s policy of relying in part on IPPs to co-finance and implement rural electrification projects

17 Renewable Energy Technologies Used
Solar PV battery charging stations (BCS), solar home systems (SHS), streetlights, telecom, power systems for other applications Micro-hydro (5 prepared, 3 implemented) Biomass (thermal applications) Wind power not used due to low wind resource in project area PV BCS supported in part due to concerns about inability to enforce monthly fees (too dangerous to repossess SHS for nonpayment), PV focus now on SHS, communications, education

18 Project Approach Not renewable energy (RE) development or RE market development per se Use RE for basic service and as catalyst to organize communities for social and economic development In marginalized/neglected communities, the RE interventions have major impacts on peoples’ perception of benefits of peace and hope for future Difficult environment prevented on commercial approaches to energy system/service supply Work with BRECDAs to prepare and implement social and livelihood projects, including both RE and/or non-energy projects Maximize links between BRECDAs and vendors for repair, parts, market expansion, battery recycling

19 Community Level Institutions
Due to lack of producer cooperatives or other pre-existing organizations in most AMORE communities, institutions had to be created to manage energy systems and collect fees. BRECDAs (Barangay Renewable Energy and Community Development Associations) were formed Main BRECDA tasks: Operate and maintain energy systems; Collect fees and manage O&M fund; If possible, expand service to additional households AND Pursue other economic and social development activities

20 Barangay Renewable Energy and Community
Development Association (BRECDA) BRECDA composed of electrified households, with elected Chairperson and Treasurer, employs local operator or technician Manages fee collection, O&M fund accounts Systems/service is subsidized, but users must pay monthly fees: $3 (U.S.)/month for service via battery charging station (BCS); $5.40/month for solar home system (SHS) O&M fund supports repair, partial cost of battery replacement, expansion of service to new households BRECDAs formally register, establish bank accounts Winrock provides training in financial management, leadership, and livelihood project preparation

21 O&M Fee Structure for Barangays with PV BCS Systems
Components Monthly Fees Battery charging fee (with operator’s wage and cable and clamp replacement cost) PhP Battery replacement cost (50%)* 68.00 Cost of transporting dead battery to recycling depot 11.00 Livelihood capital build-up Total monthly fee (56PhP/$US) PhP * The balance will be paid by the member upon battery replacement.

22 Sample O&M Fee Structure for Barangays w/ Solar Home Systems
Components Monthly Fees Monthly Lease-to-Own Fee (75% AMORE, 25% BRECDA member; 5-year payback; for expansion of systems to more households) PhP BRECDA O&M service charge (including BCS operator’s and technician’s salaries) 35.00 Battery replacement cost (41.67%)* 125.00 Cost of transporting dead battery to recycling depot 11.00 Livelihood capital build-up Total Monthly Fee (56PhP/$U.S.) PhP * The balance will be paid by the member upon battery replacement.

23 Projects Supported Basic electrification for lighting andHH uses is major focus in all communities (minimum 30 HH) Social/community services: street/dock lighting (all), communications, water supply, school electrification (others in 25+, ) Income-generating livelihood activities Productive use of RE (15+ pilots/demos) Other improvements to production and marketing, including many with no energy intervention (30+)

24 Social Project Example: Telephony
Evaluate technical options, institutional approach Supervised payphones in central barangay locations Testing different business models Use of cellular (fixed or handset) or fixed satellite technologies depending on service availability Six GSM fixed cellular payphones and two fixed satellite phones installed by November 2004 Modest revenue generation for most BRECDAs with donated handset Expanded rollout planned under AMORE 2

25 Other Social Pilot Projects
School Electrification/Distance education Collaboration with Knowledge Channel Dual-use mini-cinema (TV-DVD) for both entertainment and educational purposes Limited computer/ICT (2 communities) Potable water supply Health Link BRECDAs with malaria prevention program of Shell Pilippinas Foundation (i.e., leverage BRECDA institution)

26 Two Main Types of Livelihood or Productive Use Projects
Productive use of renewable energy: mostly pilot and demonstration projects Solar thermal and biomass thermal for drying Micro-hydro for milling, workshop Pumping/micro-irrigation for high-value crops Aquaculture Livelihood projects w/no energy component Improved seaweed production (Lantay, credit) Gravity-fed micro-irrigation for vegetables * Can also provide TA for non-RE energy interventions (e.g. diesel-powered ice-making)

27 Livelihood Projects Livelihood Project Approach Partner Agencies
DOST, BFAR, UNDP TLRC, DTI • Work with BRECDAs/producers to assess options • Build on existing economic activities • Carragenan seaweed production • Fishing, aquaculture • Agriculture

28 Livelihood/Productive Use Projects: Forms of AMORE Support
Technical assistance Information dissemination Capacity building Assessment of productive use energy requirements and options (e.g., drying) Capital funding for productive use field projects including demos, pilots, other Financing facilitation (QUEDANCOR)

29 AMORE’s Implementation Strategy for Productive Projects
Assess existing livelihood to identify potential productive application of RE, AND/OR other ways to improve to production, post-harvest, and marketing Prepare feasibility study Prepare plans using participatory process Focus on productive use of RE

30 AMORE’s Implementation Strategy for Productive Projects
Design and implement training for the BRECDA and members to manage/implement the project Facilitate access of BRECDAs to funding or credit institutions and market information Monitor implementation & institute needed improvement as needed Document experiences of implementation

31 Productive Demonstration and Pilot Projects
Solar and biomass-fired drying for fish, rice, grain, seaweed Micro-irrigation for high-value vegetable production (PV and treadle pumping) Grain and coffee milling (micro-hydro) Aquaculture—lighting, modest aeration Ice-making (TA only, for diesel-powered system) In AMORE 2, increased focus on micro-hydro, including for productive uses, and on community-based natural resource management (CBNRM)

32 Accomplishments Electrified 141 communities and over 4,240 households with PV and micro-hydro by 8/2004 More than 200 communities and 6,300 households to be electrified by 12/31/2004 170 Barangay Renewable Energy and Community Development Associations (BRECDA) to manage energy systems and implement economic development activities (205 by 12/31/2004) Trained BRECDA members on technical issues, administrative and financial management

33 Accomplishments Contributed to peace process by engaging with historically neglected communities Recognition by USAID, Philippine government, private donors, and communities of AMORE project performance and benefits Positive performance & community requests have led to follow-on AMORE II project (FY ) Developed/piloted models (e.g., rural telephony) for broader implementation in AMORE 2

34 AMORE 2 Follow-On Project
October 2004-September 2009 (implementation starts 1/2005) Target: At least 200 barangays including 20 micro-hydro (11,600 households) Support peace & development in conflict-affection regions through provision of basic rural electrification and related services

35 AMORE 2 Follow-On Project
Strengthen community abilities to effectively manage natural resources and implement economic development activities, Micro-hydro sector strengthening to improve ability of Philippine industry and NGOs to assess, plan, and implement micro-hydro projects

36 AMORE 2 Changes vs. AMORE Increased focus on use of renewable energy for high value social and productive applications Major focus on microhydro development Community-based natural resource management activities, including watershed protection Develop lower-cost household lighting options, increase cost-recovery

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