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Productive Uses of Energy
Opportunities for Rural Electrification
Monika Rammelt
Poverty-oriented basic energy services (HERA)
Photo credit: GIZ/Wegener
GIZ GmbH, Eschborn
19/03/2015
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What are Productive Uses of Energy (PUE)?
PUE are defined as agricultural, commercial and industrial activities
involving energy services as a direct input to the production of goods or
provision of services.
 Includes home businesses, non-monetary income
 Excludes social infrastructure etc.
 Cuts across different sectors, energy sources, types of enterprises
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Why bother?
Productive use of energy can be a significant driver of economic growth
and social progress in developing countries:
 underpin the creation and upgrading of value chains
 facilitate diversification of economic structures and livelihoods
 reduce vulnerability to multiple stresses and external shocks.
 enhance the commercial viability and financial sustainability of
infrastructure investments
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What does this mean in practice?
Productive uses potentiallly
 Convert into additional income for end-users
 Consequently increases their ability to pay bills and recoup investment in
grid connection/off-grid system as well as end-use equipment
 Increase economic viability of mini-grids through higher load factors and
an increase in revenue for operator
 Increases technical durability of energy infrastructure through increasing
ability of operator to cover operation and maintenance costs
 Increased impact of (rural) electrification
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What does this mean in practice?
Exemplary load curve with/without PU in a village
Average daily energy demand: HH 11kWh, PU 54kWh
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What can GIZ offer?
 Advice and knowledge management
 PRODUSE Materials and Website
 Catalogue for PUE of solar PV (planned)
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PRODUSE – Manual, Study, Website
Available Material:
•
PRODUSE Impact Evaluation Methodology
•
PRODUSE Impact Evaluation Study
•
PRODUSE Manual
•
PRODUSE Website (www.produse.org)
•
Productive Use of Thermal Energy Guide
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PRODUSE Manual
A structured approach towards PUE promotion
Objectives
•
Pragmatic guidelines on how to plan, design & implement programmes for
productive use promotion
•
Structured approach applicable to a wide range of settings
Assumed scenario
•
To supplement ongoing electrification program
•
Headed by energy sector experts
•
Target population is “electricity-illiterate”
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PRODUSE Study and Methodology
Objective
•
Gaining insight into interaction between electrification and
productive electricity usage by examining the impact of
electrification on micro enterprises
•
Improving the available toolkit for the impact evaluation of
electrification programmes
Field surveys
•
Benin (farmers)
•
Ghana (MSME in light industrial zones)
•
Uganda (fishing communities)
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PRODUSE Study and Methodology
Findings I
•
Businesses in service sector tend to get connected to the grid, take-up
rates in manufacturing sector of rural areas were low
•
Usage of electrical appliances low, electricity mostly used for lighting
(exception study in Ghana)
•
Electrification hardly translated into higher profits, instead could even
reduce profitability (Benin)
•
Electrification can lead to creation of businesses, which generate
additional income, and attraction of larger enterprises to the area of
electrification
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PRODUSE Study and Methodology
Findings II – Methodology
•
•
Development of a robust and sound evaluation method
Business that get electrified can per se be different to those that do not
get electrified, simple comparison of these two groups leads to invalid
findings
→ Proper usage of statistical techniques necessary and sufficient size of
sample
•
Methodological rigour is possible with small budget
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PRODUSE 2.0
Strengthening evidence base on PUE
•
Which PUE efforts are effective?
•
How do income generating activities emerge?
•
How to leverage suppressed demand and create real net economic growth?
•
What are success factors for start-ups?
•
…
Currently looking for suitable projects
Criteria
•
Baseline or evaluation status
•
Treatment and control group with sufficient size (ideally 200-300 firms)
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Productive Use of Solar PV in Developing Countries
A catalogue of technical solutions and sample business cases
Tailoring, Senegal
Hair cutting, Uganda
Milk cooling, Mali
Grain milling, Senegal
Packaging, Uganda
Water pumping, India
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Productive Use of Solar PV in Developing Countries
A catalogue of technical solutions and sample business cases
•
Guidebook for project practitioners and solar companies on decentralized
solar PV-powered applications that can be used for productive purposes.
•
Factsheets for the individual applications including technical
specifications of the appliances and the required PV system
•
Exemplary calculations and costs of a business scenario (including
cash flow and time of amortization of investment) in different setting
Looking for firms/partners interested in piloting technologies/business
scenario in field
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Productive Use of Solar PV in Developing Countries
A catalogue of technical solutions and sample business cases
•
Technical solutions available on the market, incl. technical specifications (system components,
sizing of PV array and other components, power consumption of appliance, status of product
development, output, weight…)
•
Performance in the field (external factors, e. g. climatic conditions)
•
Availability of the applications and factors to be taken into account upon purchase of the
appliance (special reliable brands, features, availability of spare parts…)
•
Business scenarios – Investment costs, repayment period, cash flow in different settings, exfactory prices/prices charged by international distributors
•
Potential to be adopted at scale
•
Best practice, exemplary projects, applications, contacts to resource persons
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Thank you for your attention.
Monika Rammelt
Poverty-oriented basic energy services (HERA)
Dag-Hammarskjöld-Weg 1-5
65760 Eschborn
Germany
Photo credit: GIZ/Wegener
Tel.:+49 6196 79 6453
E-Mail: monika.rammelt@giz.de
www.giz.de/hera
www.produse.org
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