Access to Energy for the Base of the - Ashoka

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22 � Grid must be able to handle the increased load � Utility must acquire new skills such as risk admi - nistration for credit allocation (as with Codensa), or managing a retail distribution chain (in the case of Conlog’s credits) As the example of Delhi’s Slum Electricity Cooperatives illustrates, a certain amount of political will is required on the part of the utility and municipality in order to attempt a new way of working. Finally, leaders of grid connection enterprises emphasize that the most important thing is that the community takes ownership. The community must be defining, supporting, and refining the service; otherwise, it does not work. The cases discussed below illustrate that community associations, pre-pay technology and building complementary businesses enable companies to connect poor people to the grid in a safe, affordable, and profitable manner. These innovations have largely come about one at a time as a response to unfavorable market conditions. It remains to be seen what will be accomplished when these innovations are pro-actively combined to bring access to energy to the 1b poor people in slums. CASE STUDY PRODUCT PAGE LYDEC Gas grid connection 23 Provivienda Electricity grid connection 25 Slum Electricity Electricity grid Cooperative connection 27 Conlog Pre-pay electricity meters 29 Codensa Consumer credit through electricity bill 31
LYDEC Legal slum grid connection in Casablanca Morocco Executive Summary: In 1999, LYDEC decided to electrify 30k households in Casablanca slums to eradicate the fraud that caused power shortages in its network. Overcoming regulatory, technical and operating issues, the project connected 75% of Casablanca slum households within 5 years, thanks to 1.3k community representatives in charge of 20 household blocks. The operation required a limited financial investment from LYDEC (paid back by beneficiaries over a 3-year period), is viable and saves the utility the $1.4m previously lost due to fraud. Replication of such a model in other geographies requires available power supply, adapted regulatory framework and strong collaboration with local community. � Date of creation: 1999 � Main products delivered: 220V, 15Ah legal access to grid power for domestic use � 30k slum households served at end 2004 (=75% penetration of estimated market) � Company: LYDEC (a GDF Subsidiary owned at 51%), Casablanca power distribution company since 1997 � Internal leadership: slum electrification working group reporting to top management � HR: dedicated LYDEC team and 1.3k customers representatives � Community based power delivery: � LYDEC: builds primary (public) and secondary (private) grids, sells electricity to representatives based on collective meters � Representatives: intermediates between LYDEC and 20 individual end-customers (one block), resell power and gather monthly payments based on individual meters � Social marketing scheme: participative involvement of end-customers to define adapted service requirements and secure their buy-in Project basic information LYDEC power grid (primary network) Representative’s collective meter Private power grid (secondary network) Household’s individual meter Households’ community Household Slum electrification 2 layered network: LYDEC’s owned network in blue, private community network in red 23
Page 1: Access to Energy for the Base of th
Page 6 and 7: FOREWORD 1.6 billion people do not
Page 8: INTRODUCTION The opportunity to wri
Page 11 and 12: The projects discussed reflect mark
Page 13 and 14: Despite its size, the BOP energy ma
Page 15 and 16: 3. STATEMENT OF THE PROBLEM Energy
Page 17 and 18: electricity generating targets over
Page 19 and 20: 4.1 GRID CONNECTIONS Transforming s
Page 21 and 22: connections will provide safe, reli
Page 23: Before 1999, LYDEC experienced a lo
Page 27 and 28: FUNDACION PRO VIVIENDA SOCIAL Natur
Page 29 and 30: SLUM ELECTRICITY COOPERATIVE Slums
Page 31 and 32: CONLOG Grid electricity with pre-pa
Page 33 and 34: CODENSA Slum Electricity grid conne
Page 35 and 36: 4.2 DEVICES Providing mass-market d
Page 37 and 38: A Mightylight, Cosmos pioneering so
Page 39 and 40: Enterprises on the way to being pro
Page 41 and 42: BSH PROTOS Plant Oil Stove Indonesi
Page 43 and 44: BP INDIA Mass-market bio-fuel pelle
Page 45 and 46: ENVIROFIT INTERNATIONAL Mass-market
Page 47 and 48: COSMOS IGNITE INNOVATIONS Solar LED
Page 49 and 50: D.LIGHT DESIGN LED-solar devices In
Page 51 and 52: TOTAL LPG Mobile Retail Dealers Ban
Page 53 and 54: VIDAGAS LGP for vaccines cold-chain
Page 55 and 56: 4.3 SOLAR HOME SYSTEMS Lighting, co
Page 57 and 58: Interview Solar Home Systems basic
Page 59 and 60: Finally, SHS have traditionally bee
Page 61 and 62: expects that the growing force of t
Page 63 and 64: Grameen Shakti has already built up
Page 65 and 66: Ability to solve the problem Econom
Page 67 and 68: � Financials: Solar technicians i
Page 69: "At the beginning, I was skeptical.
Page 72 and 73: 70 A rural cooperative is an enterp
Page 74 and 75:
72 Additional investment is often r
Page 76 and 77:
74 � Financials: Hari Sharan, Fou
Page 78 and 79:
76 � Financials: Tri Mumpuni, Fou
Page 80 and 81:
78 The four groups of business mode
Page 82 and 83:
80 Carbon credits is a challenging
Page 84 and 85:
82 AFRICAN RURAL ENERGY ENTERPRISE
Page 86 and 87:
84 E+CO Clean Energy Finance Global
Page 89 and 90:
5 Recommendations
Page 91 and 92:
5. Support favourable energy regula
Page 93 and 94:
such as charging mobiles for a smal
Page 95 and 96:
6 Appendix
Page 97:
which corresponds to a daily income
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