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www.energy.soton.ac.uk
Energy and Climate Change Division – www.energy.soton.ac.ukProf A S Bahaj : The Role of Energy in Development
Energy for
Development:
business opportunities
for community
minigrids
Professor AbuBakr S Bahaj
Energy and Climate Change Division, Sustainable Energy Research Group
Faculty of Engineering & the Environment
University of Southampton,
Southampton, SO17 1BJ
United Kingdom
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Energy generation and services
 Exploit local natural resources, understand how these can be coupled
with economic, social and environmental impacts.
 Local abilities - the provisions for societies will differ by region.
 System design - need to be less complex & anticipate loads.
 Storage systems.
 A supply chain including technical support will need to be in place.
 If local natural resources are inadequate or inappropriate, a supply
chain for the delivery of energy services based on fossil fuels will need
to be established.
Need to take into account the following factors:
Possibilities for energy generation:
 renewable energy - regionally and temporally variable,
initial capital cost (fuel free).
 fossil energy – cost, maintenance and supply chain! 1000 kWh/m2.a
1000 .. 1500 kWh/m2.a
1500 .. 2000 kWh/m2.a
2000 .. 2500 kWh/m2.a
>2500 kWh/m2.a
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Energy provisions
Intervention strategies
Internal / external
donor provides
investment
Local investment!
Training
given.
Revenue
generated.
Community has
interest in project
and are prepared
to run it.
Scheme is
sustainable
and is
replicable.
External
donor
supply and
install
equipment
Minimum training,
No supply chain or
revenue generation.
Minimal community
engagement
After some time, system
fails and is not repaired
etc.
X
Community
engagement is key
A better pattern, something like the following:
==
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
=== This sits at the heart of the E4D project.
Energy provisions
1. Capital costs
2. Operational costs
3. Income generation.
Options:
• Banks
• Micro financing companies
• Governments
• etc
How can such
an intervention
be financed?
Intervention strategies
Aim for the better pattern:
– Finance
Internal / external
donor provides
investment
Local investment!
Training
given.
Revenue
generated.
Community has
interest in project
and are prepared
to run it.
Scheme is
sustainable
and is
replicable.
Community engagement is key
==
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
E4D project aims
 To establish and implement, easy to replicate,
sustainable decentralised off-grid electricity.
 Specific to the promotion of both development,
alleviate poverty and improves wellbeing in rural
communities in East Africa.
 Tailor made solutions to meet the productivity
needs of target communities.
 Develop easy to apply tools, to ensure long term
financial viability whilst addressing the associated
societal and health impacts.
 Tools and designs to replicate the projects.
Replication of Rural Decentralised off-grid Electricity Generation through
Technology and Business Innovation
www.energyfordevelopment.net
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community led energy supply services
 Community ownership and enhanced wellbeing.
 Commerce creating value especially of trade / agricultural production.
 Services that can address other societal needs such as educational and
primary health requirements.
 Cottage industries / SMEs geared to enhance the wellbeing and wealth of
the community.
 The needed platform for capacity building to enhance growth / retain
capabilities / expand.
Core businesses and community ownership to be enhanced / created and
developed. This can provide/facilitate the following:
Various possibilities for the organisation of an energy supply provider:
 Initial set-up and technology capital costs.
 Funding streams to be addressed at the outset.
 Holistic approach – community at centre.
 Revenue generation!
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services
Kenya: Kitonyoni
Implementation approach:
 Understanding country / region.
 Developing knowledgebase.
 Assess and review aspirations / needs.
 Community based structures.
 Enhancing what is already there.
 Business approach / revenue generation.
established.
 System design and overall procurement.
 Installation.
 Operational analysis.
 Business case evidence.
 Replication.
Kitonyoni sub-location
Mwania sub-
location
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
People/km2
Population density
0-5 km
5-10 km
10-20 km
20-50 km
50-100 km
100-250 km
Distance from the grid
Understanding country / region.
=>Exclude <50 people/km2
=>Exclude <15 km from grid
Kenya: regional understanding
(People/km2).km
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Kenya: Makueni district : 160km south of Nairobi, 27.1 km2, population density
96 persons/km2, total population app. 2,590
Mii
Kangondi
Kavingoni
Kwa
Kavise
Kiliza
Kitonyoni
!
!
!
!
!!!!!!!!
!
!!!!
!
!
!!
!!!!!!!!!!!
!
!
"
Mwania
0 2 41 Kilometers
Where do Households mostly charge their mobile phones?
Using own electricty
Using neighbours electricity
At Kitonyoni/Mwania TC
Other
Kitonyoni_roads
Kitonyoni/Mwania Sub Location
Assessing needs
Control Community
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Lighting data from the catchment areas. - Kitonyoni (left) and Mwania (right)
Kenya: Makueni district
Mii
Kangondi
Kavingoni
Kwa
Kavise
Kiliza
Kitonyoni
!
!
!
!
!!!!!!!!
!
!!!!
!
!
!!
!!!!!!!!!!!
!
!
"
Mwania
0 2 41 Kilometers
Do HH own a paraffin lantern?
Yes
No
Kitonyoni_roads
Kitonyoni/Mwania Sub Location
Do Households own paraffin lanterns?
Assessing needs
Control Community
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Each dot on represents a household and the
legend identify the available platform for device
charging.
Mii
Kangondi
Kavingoni
Kwa
Kavise
Kiliza
Kitonyoni
0 2 41 Km
Solar Panels
Own Generator
Vehicle Battery
No Electricity in HH
Other
Kitonyoni_roads
Kenya: Kitonyoni
Assessing consumption
-0.02
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
Relativefrequency
Monthly lighting spend (KSh)
Poly. (Kitonyoni) Poly. (Mwania)
Lighting cost from the catchment areasPower availability
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Concept and project development
Kenya: E4D Concept
Business
consumption
Lighting
(Lanterns)
Mobile Phone
Charging
Sale of
Water
Remote
charging
Stations
On-going
income
Households
/ education
Local
Trading
Centre
Community
Members
Sub Location
Development
Benefit
Group
Cooperative
&
Committees
Initial
Capital
Initial Income for
Co-Op through
Shareholder &
Membership
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Power supply/income structure
Kenya: Kitonyoni == power supply
RLSsystemineveryhousehold
Trading Centre
Business
Business
School
Health Centre
Business
RLSsysteminevery
household
Minigrid – connecting businesses, health centre & schools #40.
Residential housing have rechargeable lighting systems # target 500 households.
Business
Business
ESCO Minigrid
Churches
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
System deployment / connectivity
Kenya: Kitonyoni == Deployment
Provide lighting to over 500 households and power to businesses
− Trade Centre : Via minigrid network in the
− Households: Via rechargeable lantern / battery
− Develop legislative framework to attain project sustainability
(a)
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
System design / installation
Kenya: Kitonyoni == System installed
13.5 kWp PV, 4 strings each @ ~60V ~9A
4No.48V80A
15 kW, 1500 rpm,
230V, single phase,
max 21.5 kW
48V800Ah
2No. 10kVA
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Business models
Kenya: Kitonyoni: Tariffs
ESCO/ Co-operative Society
Battery
Charging
Business
Retail Businesses
Health Clinic/
School
Tariff 1 - Tiered
Tariff 2 - Fixed
Lanterns supply
Energy supply
Microcredit
• Provide lighting 3000 people, power to 40 businesses.
• Rainwater harvesting from canopy.
• Income generation for the Co-operative and the project.
Churches
Households as direct
customer for battery
charging
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Additionality
Kenya: Kitonyoni – rain harvesting
Various possibilities could be envisaged
that combine energy and water provision
in water stressed areas:
 Canopy used to harvest rain water.
 Energy supply that combines the
provision of electricity for normal use
in businesses/housing as well as
water pumping.
 Additional revenue generation for the
cooperative.
 Scaling of the approach is possibel?
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services
Kenya: Achievements
Access
Affordability
assessment
Pricing
Operation
Payment
mechanism
Monitoring &
evaluation
Governess
Operations &
maintenance
Ownership
finance
Community
engagement
Outputs
Templates to
replicate
Local supply
chain
Private
Sector
engagement
Project
economics
Project
economics
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community status
Kenya: Kitonyoni
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Impacts and development
Kenya: E4D Concept
Business
consumption
Lighting
(Lanterns)
Mobile Phone
Charging
Sale of
Water
Remote
charging
Stations
On-going
income
Households
/ education
Local
Trading
Centre
Community
Members
Sub Location
Development
Benefit
Group
Cooperative
&
Committees
Initial
Capital
Initial Income for
Co-Op through
Shareholder &
Membership
Health
Jobs / new
businesses
Community
invigoration
Poverty
alleviation
Impacts
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services
Kenya: Kitonyoni extension = some examples
Maternity unit
Grid extension
Mobile power
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Concept and project replication
Project timeline
Network formation (2012/3)
Major conference (2014)
Outputs (2011 – 2014):
Workshops, publications,
capacity building and training
2 village systems to
be installed
(2013/4)
1st village system
installed (2012)
Baseline surveys
(2010/11)
Endline surveys
impacts
4th village system
installed (2014)
ENERGY FOR
DEVELOPMENT
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Concept and project replication
Future/Replication
Kitonyoni, Kenya
• 13.5kWp Solar PV
• 15kWp Generator
• 48V 800Ah Storage
Oloika, Kenya
• 13.5kWp Solar PV
• 48V 800Ah Storage
Bambouti, Cameroon
• 6kWp Solar PV
Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk
Community based energy supply services
Kenya: Kitonyoni
This work is supported by the EPSRC and in collaboration with many
partners – www.energyfordevelopment.net
www.energy.soton.ac.uk
Energy and Climate Change Division – www.energy.soton.ac.ukProf A S Bahaj : The Role of Energy in Development
This work is part of the activities of the Energy and Climate Change Division and the Sustainable Energy
Research Group at the University of Southampton and is supported by RCUK / EPSRC /DFID
Thank you ..
www.energyfor development.net

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Cambridge | Jan-14 | Energy for Development: business opportunities for community minigrids

  • 1. www.energy.soton.ac.uk Energy and Climate Change Division – www.energy.soton.ac.ukProf A S Bahaj : The Role of Energy in Development Energy for Development: business opportunities for community minigrids Professor AbuBakr S Bahaj Energy and Climate Change Division, Sustainable Energy Research Group Faculty of Engineering & the Environment University of Southampton, Southampton, SO17 1BJ United Kingdom
  • 2. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Energy generation and services  Exploit local natural resources, understand how these can be coupled with economic, social and environmental impacts.  Local abilities - the provisions for societies will differ by region.  System design - need to be less complex & anticipate loads.  Storage systems.  A supply chain including technical support will need to be in place.  If local natural resources are inadequate or inappropriate, a supply chain for the delivery of energy services based on fossil fuels will need to be established. Need to take into account the following factors: Possibilities for energy generation:  renewable energy - regionally and temporally variable, initial capital cost (fuel free).  fossil energy – cost, maintenance and supply chain! 1000 kWh/m2.a 1000 .. 1500 kWh/m2.a 1500 .. 2000 kWh/m2.a 2000 .. 2500 kWh/m2.a >2500 kWh/m2.a
  • 3. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Energy provisions Intervention strategies Internal / external donor provides investment Local investment! Training given. Revenue generated. Community has interest in project and are prepared to run it. Scheme is sustainable and is replicable. External donor supply and install equipment Minimum training, No supply chain or revenue generation. Minimal community engagement After some time, system fails and is not repaired etc. X Community engagement is key A better pattern, something like the following: ==
  • 4. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk === This sits at the heart of the E4D project. Energy provisions 1. Capital costs 2. Operational costs 3. Income generation. Options: • Banks • Micro financing companies • Governments • etc How can such an intervention be financed? Intervention strategies Aim for the better pattern: – Finance Internal / external donor provides investment Local investment! Training given. Revenue generated. Community has interest in project and are prepared to run it. Scheme is sustainable and is replicable. Community engagement is key ==
  • 5. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk E4D project aims  To establish and implement, easy to replicate, sustainable decentralised off-grid electricity.  Specific to the promotion of both development, alleviate poverty and improves wellbeing in rural communities in East Africa.  Tailor made solutions to meet the productivity needs of target communities.  Develop easy to apply tools, to ensure long term financial viability whilst addressing the associated societal and health impacts.  Tools and designs to replicate the projects. Replication of Rural Decentralised off-grid Electricity Generation through Technology and Business Innovation www.energyfordevelopment.net
  • 6. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Community led energy supply services  Community ownership and enhanced wellbeing.  Commerce creating value especially of trade / agricultural production.  Services that can address other societal needs such as educational and primary health requirements.  Cottage industries / SMEs geared to enhance the wellbeing and wealth of the community.  The needed platform for capacity building to enhance growth / retain capabilities / expand. Core businesses and community ownership to be enhanced / created and developed. This can provide/facilitate the following: Various possibilities for the organisation of an energy supply provider:  Initial set-up and technology capital costs.  Funding streams to be addressed at the outset.  Holistic approach – community at centre.  Revenue generation!
  • 7. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Community based energy supply services Kenya: Kitonyoni Implementation approach:  Understanding country / region.  Developing knowledgebase.  Assess and review aspirations / needs.  Community based structures.  Enhancing what is already there.  Business approach / revenue generation. established.  System design and overall procurement.  Installation.  Operational analysis.  Business case evidence.  Replication. Kitonyoni sub-location Mwania sub- location
  • 8. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk People/km2 Population density 0-5 km 5-10 km 10-20 km 20-50 km 50-100 km 100-250 km Distance from the grid Understanding country / region. =>Exclude <50 people/km2 =>Exclude <15 km from grid Kenya: regional understanding (People/km2).km
  • 9. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Kenya: Makueni district : 160km south of Nairobi, 27.1 km2, population density 96 persons/km2, total population app. 2,590 Mii Kangondi Kavingoni Kwa Kavise Kiliza Kitonyoni ! ! ! ! !!!!!!!! ! !!!! ! ! !! !!!!!!!!!!! ! ! " Mwania 0 2 41 Kilometers Where do Households mostly charge their mobile phones? Using own electricty Using neighbours electricity At Kitonyoni/Mwania TC Other Kitonyoni_roads Kitonyoni/Mwania Sub Location Assessing needs Control Community
  • 10. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Lighting data from the catchment areas. - Kitonyoni (left) and Mwania (right) Kenya: Makueni district Mii Kangondi Kavingoni Kwa Kavise Kiliza Kitonyoni ! ! ! ! !!!!!!!! ! !!!! ! ! !! !!!!!!!!!!! ! ! " Mwania 0 2 41 Kilometers Do HH own a paraffin lantern? Yes No Kitonyoni_roads Kitonyoni/Mwania Sub Location Do Households own paraffin lanterns? Assessing needs Control Community
  • 11. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Each dot on represents a household and the legend identify the available platform for device charging. Mii Kangondi Kavingoni Kwa Kavise Kiliza Kitonyoni 0 2 41 Km Solar Panels Own Generator Vehicle Battery No Electricity in HH Other Kitonyoni_roads Kenya: Kitonyoni Assessing consumption -0.02 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 Relativefrequency Monthly lighting spend (KSh) Poly. (Kitonyoni) Poly. (Mwania) Lighting cost from the catchment areasPower availability
  • 12. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Concept and project development Kenya: E4D Concept Business consumption Lighting (Lanterns) Mobile Phone Charging Sale of Water Remote charging Stations On-going income Households / education Local Trading Centre Community Members Sub Location Development Benefit Group Cooperative & Committees Initial Capital Initial Income for Co-Op through Shareholder & Membership
  • 13. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Power supply/income structure Kenya: Kitonyoni == power supply RLSsystemineveryhousehold Trading Centre Business Business School Health Centre Business RLSsysteminevery household Minigrid – connecting businesses, health centre & schools #40. Residential housing have rechargeable lighting systems # target 500 households. Business Business ESCO Minigrid Churches
  • 14. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk System deployment / connectivity Kenya: Kitonyoni == Deployment Provide lighting to over 500 households and power to businesses − Trade Centre : Via minigrid network in the − Households: Via rechargeable lantern / battery − Develop legislative framework to attain project sustainability (a)
  • 15. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk System design / installation Kenya: Kitonyoni == System installed 13.5 kWp PV, 4 strings each @ ~60V ~9A 4No.48V80A 15 kW, 1500 rpm, 230V, single phase, max 21.5 kW 48V800Ah 2No. 10kVA
  • 16. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Business models Kenya: Kitonyoni: Tariffs ESCO/ Co-operative Society Battery Charging Business Retail Businesses Health Clinic/ School Tariff 1 - Tiered Tariff 2 - Fixed Lanterns supply Energy supply Microcredit • Provide lighting 3000 people, power to 40 businesses. • Rainwater harvesting from canopy. • Income generation for the Co-operative and the project. Churches Households as direct customer for battery charging
  • 17. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Additionality Kenya: Kitonyoni – rain harvesting Various possibilities could be envisaged that combine energy and water provision in water stressed areas:  Canopy used to harvest rain water.  Energy supply that combines the provision of electricity for normal use in businesses/housing as well as water pumping.  Additional revenue generation for the cooperative.  Scaling of the approach is possibel?
  • 18. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Community based energy supply services Kenya: Achievements Access Affordability assessment Pricing Operation Payment mechanism Monitoring & evaluation Governess Operations & maintenance Ownership finance Community engagement Outputs Templates to replicate Local supply chain Private Sector engagement Project economics Project economics
  • 19. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Community status Kenya: Kitonyoni
  • 20. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Impacts and development Kenya: E4D Concept Business consumption Lighting (Lanterns) Mobile Phone Charging Sale of Water Remote charging Stations On-going income Households / education Local Trading Centre Community Members Sub Location Development Benefit Group Cooperative & Committees Initial Capital Initial Income for Co-Op through Shareholder & Membership Health Jobs / new businesses Community invigoration Poverty alleviation Impacts
  • 21. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Community based energy supply services Kenya: Kitonyoni extension = some examples Maternity unit Grid extension Mobile power
  • 22. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Concept and project replication Project timeline Network formation (2012/3) Major conference (2014) Outputs (2011 – 2014): Workshops, publications, capacity building and training 2 village systems to be installed (2013/4) 1st village system installed (2012) Baseline surveys (2010/11) Endline surveys impacts 4th village system installed (2014) ENERGY FOR DEVELOPMENT
  • 23. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Concept and project replication Future/Replication Kitonyoni, Kenya • 13.5kWp Solar PV • 15kWp Generator • 48V 800Ah Storage Oloika, Kenya • 13.5kWp Solar PV • 48V 800Ah Storage Bambouti, Cameroon • 6kWp Solar PV
  • 24. Prof A S Bahaj : The Role of Energy in Development Energy and Climate Change Division – www.energy.soton.ac.uk Community based energy supply services Kenya: Kitonyoni This work is supported by the EPSRC and in collaboration with many partners – www.energyfordevelopment.net
  • 25. www.energy.soton.ac.uk Energy and Climate Change Division – www.energy.soton.ac.ukProf A S Bahaj : The Role of Energy in Development This work is part of the activities of the Energy and Climate Change Division and the Sustainable Energy Research Group at the University of Southampton and is supported by RCUK / EPSRC /DFID Thank you .. www.energyfor development.net