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Providing access to energy is at the heart of the development challenge

Providing access to energy

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Design targeted subsidies Support social entrepreneurs Finance ecosystem for poorest customers Invest in programs designed to create the required “infrastructure” for the energy initiatives Support favorable energy regulation Set quality standards to weed out sub-standard products Avoid market distortions such as the promise of free help Solidify relationships between public utilities and energy enterprises

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Page 1: Providing access to energy

Providing access to energy is at the heart of the development challenge

Page 2: Providing access to energy

Quick Low priced Solution

Page 3: Providing access to energy

Allows the poorest to cook, lights home work, and protects health

Envirofit cookstoveImproved air quality with clean cookstove

Global market of billions of customers requires distribution partners

Page 4: Providing access to energy

Stove market price: $14 (IRS675)Pellets for 1 week: $0.4 (IRS20)

Combustion efficiency from 40% to 80%

Cooking and fuel gathering time from 3h to 40hper day

Carbon monoxide emissions down 98%

4-5 years life expectancy

Page 5: Providing access to energy

Envirofit stoves save time and moneyand improve indoor air quality

B-1200 stove market price: $17

Fuel consumption reduced by 50%

Page 6: Providing access to energy

Solar LED lanternsRetail prices range from $10 up to $35

The Solata prices: $12 to $20

D.light Design

Dlight Kiran S10

Page 7: Providing access to energy

SOLAR HOME SYSTEMS

Lighting, communication and income generation for richer rural households~20% upfront, rest monthly fees Financing scheme: Microfinance or revolving funds, some household savings

solar panel (typically 10 to 50W)A 12V battery to store the powerA charge controller to protect the battery2 to 6 lamps (LED)

Page 8: Providing access to energy

Needs addressed: lighting, cooking, entertainment, communication and

income generation (working at night)

Grameen Shakti Bangladesh has already built up 41 Grameen Technology Centers for distributed assembling and servicing of SHS.Currently they are training local technicians who can take on future servicing and installation of SHS at the village level

SHS priced at $140 for 10W system, $412 for50W; $1,000 for 130W Biogas Plants starting from USD 187 for a 1.6cum plant to $422 for a 4.8m2 plant Improved Cook Stoves at $11.76 >215k SHS installations

Page 9: Providing access to energy

The Solar Energy foundation (SEF) promote solar

energy lighting in Africa with non-subsidized Solar Home Systems Financing: $80 upfront, then $9 per monthfor 3 years ~$7.5 monthly households spending replaceableby ST10 power Needs addressed: household and classroomslighting. Also addressing water pumping and coolingsystems for medicine.

Page 10: Providing access to energy

Micro hydro plants owned and managed by the community

100kW plant costs $300k to build Each customer pays $0.10 per kWh, roughly $2 a month Beneficiaries: 60 villages; 300,000 people

Page 11: Providing access to energy

FINANCING• Facilitating the development of social

enterprises• Grant-based support to build the market • Patient capital with energy sector expertise• Carbon markets designed to serve low-income communities

Page 12: Providing access to energy

Recommendations• Design targeted subsidies• Support social entrepreneurs• Finance ecosystem for poorest customers• Invest in programs designed to create the required

“infrastructure” for the energy initiatives• Support favorable energy regulation• Set quality standards to weed out sub-standard products• Avoid market distortions such as the promise of free help• Solidify relationships between public utilities and energy

enterprises

Page 13: Providing access to energy

Thank you The Hystra / Ashoka team This team was led by Olivier Kayser, with

Laurent Liautaud as day-to-day project manager. Aileen Nowlan and Jean-Elie Aron worked full time on this project

FOR MORE INFORMATION• www.hystra.com • www.ashoka.org/fec• http://www.ashoka.org/sites/ashoka/files/Ashoka-

HYSTRA_Access_to_%20Energy_for_the_BOP.pdf