2nd International Scientific Conference on “Energy and Climate Change”

Organised by Energy Policy and Development Centre (KEPA)

Athens, 8-9 October 2009

Portable Battery Lanterns : Paying for the service, not the hardwareBy Andy Schroeter, Director, Sunlabob Renewable Energy Ltd

Rural Electrification in Developing Countries

Current Situation:• Worldwide 1.6 billion people do not have access to electricity• Four out of five people without access to electricity live in rural areas of

the developing world, mainly in South Asia and Sub-Saharan Africa

Rural

populations

have to rely

on home-made

kerosene lamps!

World B

ank, 2001

Percentage of the population with access in 2000: 3 - 33% 33 – 66% <66%

Background (1)

Lao PDR – Country Data

• Population: 5.6 million (2005); several sparsely populated remote regions; 50% of population under 20 years old

• Geographical situation: 236,800 km2, bordered by China, Vietnam, Cambodia, Thailand, Myanmar; landlocked; mountainous

• Political regime: People’s Democratic Republic, government began decentralizing control and encouraging private enterprise in 1986

• GDP real growth rate: 7.5% (2008 est.)

• Environment - current issues: unexploded ordnance; deforestation; soil erosion; limited access to potable water

Background (2)

Energy situation in the Lao PDR

• Electrification rate (2005) = 58% (50% national grid + 8% isolated mini-hydropower plants / solar PV systems / generators / car batteries)

• highest = 96% in Vientiane Capital

• lowest = 9% is in the province of Phongsaly

• Total installed power generation capacity = 673 MW (99.8% hydropower + 0.2% diesel generators and solar photovoltaic systems)

• Large exports and imports of power to and from the neighbouring countries

• No national transmission line many towns receive electricity from neighbouring countries (Thailand, Vietnam, China)

What is Sunlabob?

Private Energy Provider for off-grid areas

• Renting out SHS for fixed monthly tariffs

• Selling KWh in villages with Village Hybrid Grids

• Selling light per hour with portable battery lamps

• Selling drinking water, purified by solar power

Solar Lanterns

“Recharging Fees for Lanterns can buy Hours of Solar Light – and replace kerosene”

Solar Lantern Rental System (SLRS)

Operation:• Small entrepreneur in village rents solar array and

charges solar lanterns for a cost covering fee• Sustainability through commercial viability

Benefits:• Reliable and cost-saving alternative to kerosene lamps:

improved health (smoke reduction), cheaper than kerosene, saving fossil fuels, brighter lighting, safety

• Central charging with guaranteed operating hours• Automated data collection allows for carbon

accountability and entering the carbon markets

Technology: Brief Description

Charging Station• System control unit• solar photovoltaic modules, in series (300 Wp)• Battery charging unit (STECA PL2085)• Management software for data handling

Lantern Units• 4W compact fluorescent lamp (cold cathode) • Sealed AGM-type lead-acid battery (12V, 7.5Ah)• Microprocessor for data collection• Stable housing

Operational Rental Scheme

installation & servicing

cost covering rent empty lamps

recharged lamps

HouseholdsCentral charging station (Village Entrepreneur)

Involvement of Partners and Financial Transactions (Laos)

Exchange Cycle with recharging fee

Village Technician

Investments

ReturnsVillage Energy Committee

owns

rents

Charging station in the villageowns

rents

Lamps in the village

Sunlabob

Village Energy Fund

re-invests

Investment Fund

loans

Private Investors

grants

Public Donors

Trust Fund

PROOF OF CONCEPT

Exchange Cycle with recharging fee

Village Technician

Investments

ReturnsVillage Energy Committee

owns

rents

Charging station in the villageowns

rents

Lamps in the village

Country Partner

Village Energy Fund

re-invests

Investment Fund

loans

Private Investors

grants

Public Donors

Trust Fund

Involvement of Partners and Financial Transactions (other countries)

Sunlabob

sells charging stations

sells lamps

facilitates PPP model

sells lamps

Exchange Cycle with recharging fee

Village Technician

Investments

Returns

purchase lease

Charging station in the village

Country Partner

Country Partner owns

rents

Lamps in the village

Investment Fund

loans

grants

Trust Fund

Involvement of Partners and Financial Transactions (Afghanistan)

provide funds for lamps

rents

Public DonorsPublic Donors

Private InvestorsPrivate

Investors

loan

Capacity building

Micro financing ‘rotating fund’

Micro financing ‘rotating fund’

Impacts (1)

MDG 1: Eradicate extreme poverty and hunger

• Creating local businesses (village entrepreneur)

• Providing technical/admin training → opportunities for further income-generating activities

• Providing additional hours of good-quality lighting → opportunities for further income-generating activities

• Providing access to information (radio/TV)

Impacts (2)

MDG 7: Ensure environmental sustainability

• Reducing kerosene consumption and CO2 emissions

• Providing an affordable service with renewable energy (solar PV)

• Reducing indoor air pollution (smoke, fumes)

• Providing the opportunity to enter the carbon markets

• Reducing the risk of household fires

Impacts (3)

MDG 8: Develop a global partnership for development

• Involvement and empowerment of local communities (suppliers, distributors, end-users)

• Creating Village Energy Committees

• Private-Public Partnership

• South-South cooperation

SLRS Highlights

Sunlabob won the Ashden Award in 2007

for the concept...

… the Lighting Africa Development Marketplace Award

from the World Bank in 2008...

… and the UNEP Sasakawa Prize

in 2008!

Roll-out plan in Laos:– Phase 1 (month 1-9): installation of 10-12 charging stations

and operation under real operating conditions– Phase 2 (month 10-24): fixing operational problems that

might have arisen from phase 1 and up-scaling the system by a further 50-80 stations

– Phase 3 (month 25-48): 250+ charging stations operational

Roll-out Plan outside Laos:– Uganda: 25 million people without access to electricity, price of

kerosene: 10-15 USD for kerosene per month– Afghanistan: around 27 million people without access to electricity– Indonesia: 70 million people without access to electricity

SLRS Roll-out Plan

Future Developments: Global Expansion

Uganda

Tanzania

Afghanistan

Cambodia

Vietnam

Indonesia

Uganda

Tanzania

Afghanistan

Cambodia

Vietnam

Indonesia

South America

Risk Analysis

• Competition Risk– Outline: New potential development projects for rural electrification– Mitigating factors: Sunlabob’s experience and track record

• Grid Connection Risk– Outline: Villagers may chose to switch to grid power when available– Mitigating factors: SLRS easy re-location

High grid-connection cost

• Partner Involvement Risk– Outline: Finding initial funding for the franchisee is complex– Mitigating factors: Sunlabob support the Public sector to facilitate the Public –

Private Partnership model

Conclusion

Summary of Investment Benefits

• Fully developed business model and plan ready for implementation

• Commercial returns for a developmental type impact project

• Carbon income upside

Summary of Strengths

• Tried and tested concept and technology

• Scalable implementation plan with significant upside through international expansion

• 10 years of market experience

Entrepreneurs trained

PPP Investment Programme for Rural Electrification in …

the rest of the world!

Sunlabob Renewable Energy Ltd

PO Box 9077, Vientiane, Lao PDR - Tel: (+856 21) 313874 - Fax: (+856 21) 314045

contact@sunlabob.com www.sunlabob.com

Thank you for your attention!

2nd International Scientific Conference on “Energy and Climate Change”

Organised by Energy Policy and Development Centre (KEPA)

Athens, 8-9 October 2009