ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 1 19 th – 23 rd June 2006 Nairobi, Kenya

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 2 Module 9: Renewable Energy and Energy Efficiency Delivery Models Maxwell Mapako CSIR Pretoria, South Africa

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 3 Structure of presentation Focus on dissemination mechanisms: Free Subsidized Fee for service Private commercial There are components of these dissemination mechanisms that are critical for success. Examples from case studies highlighting outcomes and lessons

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 4 Critical dissemination components The critical dissemination components from a five-country study ( Botswana, Zambia, Eritrea, Ethiopia and Zimbabwe ) were: 1.appropriate financing mechanisms 2.training and capacity building 3.maintenance, and 4.conducive institutional arrangements.

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 5 Project dissemination mechanisms: Zimbabwe Initiative FreeSubsidizedFee for service Private commercial BiogasDemonstration phase. DoE, NGOs, CBOs Subsidized dissemination mostly by DoE n/aTrained builders, pvt companies Improved stoves Demonstration phase 1. DoE, Silveira hse etc. Subsidized dissemination mostly by DoE n/aTrained trainers and their trainees as in ProBEC Solar PVChinese project in Chiweshe communal land Tax and duty concessions on components JICA Study. Utility and NGO as ESCOs Pvt companies dominant (+80% of total)

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 6 Rural electrification approaches in South Africa and Zimbabwe South Africa grid Includes households Govt subsidy for h/holds Plans not easily available Primary focus on household use South Africa off-grid PV Predominantly fee for service in concession areas Also sales Zimbabwe grid Focus: rural centres/institutions Levy on tariff for rural electrif Plans, criteria are public info Specific measures to support productive end uses Zimbabwe off-grid PV Predominantly sales outside any projects Also fee for service & donation

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 7 Major solar PV dissem. initiatives in Zimbabwe ParameterGEF Solar ProjectJICA StudyChinese donationPrivate/DIY Duration 1993– – –1999Open-ended Typical system configuration Module, controller auto or deep cycle battery. Conduit. Module, controller deep cycle battery. Conduit. Module, controller deep cycle battery. Conduit. Module, auto battery. Some conduit. Module size 25Wp to 83Wp25Wp and 56Wp70Wp5Wp to 83Wp Battery size 40Ah to 110Ah60Ah and 110Ah105Ah7Ah to 100Ah Battery type Initially auto, later deep cycle Deep cycle Predominantly auto. Light wattage 7W, 9W7W, 9W and 11WNo data7W, 9W Incandescent bulbs used Some systemsNot used Common Power socket PresentPresent, optionalPresentNot common Payment scheme Cash or termsService fee onlyFreeCash or terms TV/Radio load Often both Mostly radio

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 8 Operational status: BUN/JICA/DoE Survey ParameterGEF SolarJICA StudyChinese donationPrivate/DIY Present system status 63% partly operational Most working well 80% partly operational. Wiring poor. Component failure trends 48% battery 18% lights 12% controller 14% battery 43% lights 10% battery All charge controllers and some batteries replaced 50% battery 25% lights 10% controller Major failures Mostly battery failures Mostly light failures Charge controllers and batteries Mostly battery failures User satisfaction level Complaints against companies Generally satisfied Generally satisfied (warranty repairs) Generally dissatisfied

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 9 Electrification & the poor: Zimbabwe High income households dominate the grid and solar electrified categories. Poor unable to satisfy project screening criteria Poor households show the opposite trend, being mostly unelectrified

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 10 South African Solar Concessions Six concessions providing rural populations with SHS using a capital subsidy of R3500, covering 80% of the costs of installing each system. The South African concessions are based on a fee-for- service model. Customers in the Eastern Cape were paying the full R58 per month. Other areas were already benefiting from a nationally-funded operational subsidy of R40 per customer, paid for by the local authority.

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 11 SA Success Factors (dissemination) Good infrastructure in an advanced national economy High levels of technical competence in the concessionaires Local (national level) design and manufacturing capability Supportive and consistent government policy

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 12 South Africa: Key issues The provision of a SHS is on the basis of a means test that excludes the poorer rural household. Solar systems were removed from households unable to pay Customers are still not adequately represented by an independent body or organisation. The NER has this function but remains unknown to most rural consumers. Customers need to be better informed about subsidies available, and future grid plans among other things. 52% of households in Eastern Cape were found to own mains electrical appliances they could not use with a SHS.

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 13 SA (Limpopo): Main fuels used by grid-electrified rural households Grid elect used predominantly for lighting, radio, TV Thermal needs still met with wood (71% for cooking) Other fuels insignificant

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 14 Main cooking energy source: Rural Zimbabwe Grid-electrified rural households generally use electricity for cooking* The non-electrified (poorer) households use wood for cooking *Note contrast with SA because of policy difference

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 15 Experiences: Solar home systems Solar home systems were not accessed by the poor The power capacity of solar home systems renders them unable to contribute significantly to most productive activities/poverty alleviation Maintenance often becomes the major challenge after end of projects – localised maintenance capacity essential Clustering of installations will facilitate maintenance & fee collection Need for capacity building for local manufacturers - local components were less reliable Use local components as far as possible (especially BOS) – long term availability of imported components may not be guaranteed Shortage of correct components will lead to substitution with any available equivalents eg. car batteries and incandescent lights – solar home systems severely compromised Flexibility is needed since rural population is heterogeneous - one size fits all approach in fee for service projects led to client frustration Have clear contracts - revision of ESCO fees problematic

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 16 Comparative lessons. ProBEC improved stoves Accessible to the poor, cost of labour $1-$2, barter deals encountered e.g.. bar of soap paid for basic moulding Flexible power range capable of meeting thermal needs of smaller productive activities Local maintenance possible, user can do most of the maintenance Clustered around areas with trained builders who travel on foot No complex or imported parts, except the requirement for good clay, not available in some areas Flexible stove positioning possibilities to suit user preferences (outside, inside, high or low cooking positions) No complex long-term contracts

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 17 Stove limitation on pot size Situation where stove is unable to handle all pot sizes. Note half height kitchen walls for hot climate This is a fully finished stove, labour ~$2

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 18 Biogas water pumping: Botswana Botswana had unique experience in the region with biogas water pumping with large digesters up to 110m 3 Most digesters built for free by the Rural Industries Innovation Centre (RIIC) for village cooperatives (‘syndicates’) Intention was to pump water for villagers and their livestock. Botswana is mostly arid.

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 19 Botswana outcomes and lessons Financing mechanisms and equity in payment for free water. The construction of community biogas plants was not paid for by the beneficiaries. The value of the digester to them was therefore low, as was their interest There was competition with free diesel pumps; for biogas, people had to contribute dung in exchange for water

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 20 Botswana outcomes and lessons Operation and maintenance related problems: water pumping biogas plants relied on community organisation for their operation and maintenance. This was not pre-existing the dung for the digesters had to be collected over large areas and this, and handling cowdung proved unpopular; the few biogas digesters which seem to have fared better were family-owned. Eventual failure was usually due to normal long-term changes in household composition

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 21 In Conclusion Have we learned the lessons of other countries in Africa and elsewhere? For example Tanzania may now have the largest number of biogas units in Africa – what are the factors that have contributed to this? What are the types, operational status, and safety record of these digesters?

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction 22 Asante sana!