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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 hardware
By 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
World Bank, 2001
Rural
populations
have to rely
on home-made
kerosene lamps!
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
recharged lamps
Central charging station
(Village Entrepreneur)
empty lamps
Households
Involvement of Partners and
Financial Transactions (Laos)
loans
Sunlabob
Charging station
in the village
owns
Investment
Fund
rents
Private
Investors
Village
Technician
Exchange Cycle
with recharging fee
Public
Donors
Village
Energy Fund
Trust
Fund
grants
re-invests
rents
Investments
Village Energy
Committee
owns
Lamps in
the village
Returns
Involvement of Partners and
Financial Transactions (other countries)
loans
Country
Partner
Investment
Fund
owns
rents
sells
charging
stations
Private
Investors
Charging station
in the village
sells
lamps
Village
Technician
Sunlabob
Public
Donors
Exchange Cycle
with recharging fee
facilitates
PPP model
sells lamps
Village
Energy Fund
Trust
Fund
grants
re-invests
rents
Investments
Village Energy
Committee
owns
Lamps in
the village
Returns
Involvement of Partners and
Financial Transactions (Afghanistan)
loans
Country
Partner
Investment
Fund
owns
rents
loan
Private
Investors
Charging station
in the village
rents
Village
Technician
Exchange Cycle
with recharging fee
Capacity
building
Public
Donors
provide funds
for lamps
purchase
lease
Trust
Fund
grants
Investments
Micro financing
‘rotating fund’
Lamps in
the village
Returns
Impacts (1)
MDG 1: Eradicate extreme poverty and hunger
• Creating local businesses (village entrepreneur)
• Providing technical/admin training → opportunities for further incomegenerating 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!
SLRS Roll-out Plan
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
Future Developments: Global Expansion
Afghanistan
Afghanistan
Vietnam
Uganda
Tanzania
Cambodia
Indonesia
Uganda
Vietnam
Cambodia
Indonesia
Tanzania
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!
2nd International Scientific Conference on “Energy and Climate Change”
Organised by Energy Policy and Development Centre (KEPA)
Athens, 8-9 October 2009
Thank you for your attention!
Sunlabob Renewable Energy Ltd
PO Box 9077, Vientiane, Lao PDR - Tel: (+856 21) 313874 - Fax: (+856 21) 314045
[email protected]
www.sunlabob.com