Access to Energy for the Base of the - Ashoka

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30 � Problem and magnitude: � NEC had a debt of $70m due to inability to collect payment from users, mainly government offices and officials � For customers, 1b people live in slums, often without regular, safe connection to electricity � Needs addressed: � For utility, ability to collect payment for electricity � For customer, safe and regular electricity without confusion of irregular and incorrect bills Project ability to solve the problem � Ability to serve the poorest: � Pre-pay meters are used in South Africa to dispense government allocation of 50 kWh/month to poorest resident � Sustainability: maintained through utility � Impact: very high satisfaction rate from customers and from utility Project economic viability ★★★ Project scalability � Financially sound for utility: � Pre-pay meter is more expensive than traditional meter, but utility can recoup this difference within 9 months � Utility is no longer operating in debt � No extra cost to customers � Dependence on subsidies: � No subsidies for utility or clients � Ability to attract funding: � Conlog was acquired by Schneider Electric in 2000, indicating confidence in business model of pre-pay electric services � Company has undertaken NGO funded projects i.e. World Bank initiatives Sources: Hystra analysis; Interviews with Conlog ★★★ ★★★ � Market conditions for success: � Very important to educate customers about benefits of safety and quality, as people who are used to free power will resist paying � Scalability is not threatened by grid expansion or subsidies � More than 5m meters installed in 20 countries � Staff: does not require specialized skills � Infrastructures & services: �� Requires rapid installation of meters � Flexibility and access is crucial in retail channel – e.g., POS, cell phone service, � Partners: requires active utility with strong relationship with customers, and very strong retail distribution network, which Conlog consults on � Access to technology: Standard Transfer Specification for prepayment is the world’s only standard for prepayment – any company or country could utilize.
CODENSA Slum Electricity grid connections Colombia Executive Summary: Codensa, a Colombian subsidiary of Endesa utilized its unique knowledge of 6m transactions each month to dramatically increase its revenue per customer. For its 550k BOP customers it offered microcredit for electrical appliances and other household items. This grew average monthly operating income from targeted customers from $23 to $32. The consumer credit business experiences less bad debt than the banking sector average. � Date of creation: 1997 � Product / service delivered: � Credit (up to 4 times monthly income) to purchase electric appliances, insurance, magazines and classifieds � Repaid through electricity bill � Customers: 550k clients from the lowest income strata � Leadership: General Manager: Cristián Herrera � Partners involved: � 18 retailers (Alkosto, Carrefour, Makro) � Over 120 electric appliance manufacturers (LG, Samsung, Sony, Microsoft, Motorola, Nokia, Phillips, Black & Decker) � Insurance (Mapfre) � Operational infrastructure and mechanisms: � Credit scoring and bad debt collection outsourced to specialized agencies � Delivery of products through retail partners � Marketing & promotion scheme: � Advertises through retail partners, in Codensa catalogue sent to clients, and on electricity bills Project basic information Stand promoting the Codensa Hogar credit card 31
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 and 24: Before 1999, LYDEC experienced a lo
Page 25 and 26: LYDEC Legal slum grid connection in
Page 27 and 28: FUNDACION PRO VIVIENDA SOCIAL Natur
Page 29 and 30: SLUM ELECTRICITY COOPERATIVE Slums
Page 31: CONLOG Grid electricity with pre-pa
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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