Lessons Learnt from Planning to Operation Remote Rural ...

e7 / UNEP Rural Electrification Workshop Bangkok 

Session 9 

Lessons Learnt from Planning to Operation 

Remote Rural Electrification: Project e7-1 e7 

Contents 

Claus-Jürgen Dauselt 

Rural Electrification Workshop 

February 23-25, 2005 

Bangkok 

• Project Chronology and Subprojects 

• Experience Project Cycle Project e7-1 

• Status and Conclusions: 4 Micro Hydro Subprojects 

• AIJ/CDM Experience 

• Recommendation in General 

1 Hybrid Subproject 

• Experience regarding Sustainability 

2 Solar Home Subprojects



E7-1 E7 1 Indonesia: Chronology 

During 1996 Feasibility Study 

Project Design and Concept 

Project Approval (LOI, MOU, PA) 

During 1997 Establish Project Office in NTT (EPO) 

Statistical Household Income Survey 

Reconstruction of SHS in NTT 

Assessment Candidate Sites 

During 1998 Final Site Selection 

Environmental Assessments 

Socioeconomic Assessments 

Manifold Technical Studies 

Tendering of Procurement 

During 1999 Construction of Facilities 

7 PLDs Established 

Financing Schemes Established 

During 2000 Commissioning and Handing Over 

Follow-up Commercial Operation 

Conclusion of E7-1 Project (Lessons Learnt) 

2001-2003 Active Monitoring of Project Performance 

Overview Construction 

MICRO HYDRO POWER SCHEMES 

• Waikelosawa (Sumba) 15 kW 1 user (PLN grid) 

• Bokin (SuSel) 13 kW 92 users 

• Palesan (SuSel) 69 kW 267 users 

• Ta‘Ba (SuSel) 50 kW 350 users 

Connecting 710 households 

HYBRID SCHEME 

• Solar Generator 22 kW 

• Wind turbine 10 kW 

• Back-up Diesel 20 kW 

• Battery Charging Station 

Connecting 127 households 

SOLAR HOME SCHEME (50 Wp each) 

• Oelnaineno 5 kW 101 users 

• Lengkonamut 4 kW 76 users 

• Kualeu 1 kW 18 users 

Connecting 195 households



Lesson Learnt Project Cycle 

* Design/Planning 

* Mobilization 

* Implementation 

* Post-Implementation 

Status MHP Bokin (13 kW) 

• Technical 

• Operating hours 17,248 

• kWh generated 38,070 

• kWh consumed n.d. 

• Availability 0.55 

– Financial 

– O&M account 4,108,000 

– Down payment 16,100,000 

– Outstandings n.d. (10,000,000 ass.) 

– Management 

– PLD still active (completely replaced) 

– Management tools not used 

Status end 2003 

� Socioeconomic 

� Extension 5 users 

� Small business none 

� Tarifs structure unchanged 

(400/kWh; 5,000/0.5A) 

+/- Site Selection 

+ Detailed Field Assessments 

+/- Specifications (functional, detailed, IPC) 

+ Local Representation 

++ NGO Involvement 

+/- Common View on all Levels 

+/- Clear Interface with Contractors 

+ Field Officer (FO) at Site 

+ Intensive, Tailored Training 

+ Intensive Review / Steering 

- Long Decision Process 

- Self Financing not Viable 

+ PLD Concept (bottom-up) Viable 

+ Sustainable Electricity Services Viable 

+/- AIJ/CDM Viable but not Recomendable



Status MHP Palesan (69 kW) 

• Technical 



• kWh consumed 85,557 


– Financial 

– O&M account 27,499,000 


– Outstandings 9,636,000 


– PLD still active (7 staff, 1 drop-out) 

– Management tools are used 


• Technical 



� Small business 12 kiosk, carpenters, 

chicken breading, ice 

� Tarifs structure unchanged 

(300/kWh; 5,000/0.5A) 

Status MHP Ta‘Ba Ta Ba (50 kW) 





– Financial 

– O&M account 61,154,000 




– PLD still active (4 staff, 3 drop-out) 

– Management tools are well used 




� Small business 9 kiosk, power rental, 

Wartel, carpenter 

� Tarifs structure changed 

(800/kWh; 7,500 flat)



Conclusion MHP 

• Technical 

• Systems in operation (2 out of 3) 

• Replacements (routine & extraordinary) 

• Good/competent O&M (2 out of 3) 

• Grid extension (lack of quality) 

• Limited water resources (1 out of 3) 

– Financial 

– Missing transparency in cash flows 

– Missuse of revenues (2 out of 3) 

– Weak Fee collection enforcement (2 out of 3) 


– Good PLD organization (2 out of 3) 

– PLD-User Service contracts signed (1 out of 3) 

– Noticable supervision by local Government 

• Technical 


� High user participation (varying) 

� Increase in productivity (2 out of 3) 

� High user awareness for PLD scheme benefits (2 out of 3) 

Status MHP Waikelosawa (15 kW) 



• kWh submitted 12,330 


– Latest Activities (12-2003) 

– Additional operator training 

– Procurement system components 

– Initiate power house enhancement 

– PSKSK re-negotiation (218 / 425 Irp./ kWh) 


– KUD still active (3 staff, 3 drop-outs) 

– Management tools are not used 

– Cooperation with PLN initiated (contract) 

Status end 2003



Conclusion MHP Waikelosawa 

• Technical 

• System in operation 

• Routine Replacements 

• Permanent operator presence 

• Vandalism (building only) 

– Financial 

– No savings available 

– Low revenues through PSPSK 

– High KUD personnel cost 


– MHP is integrated into KUD activities 

– Unnoticable supervision by local Government 

Status HS OELEDO 

• Technical 


• kWh generated 60,480 (25 / 72 %) 



– Financial 

– O&M account 38,494,677 




– PLD still active (3 staff, 4 drop-outs) 

– Management tools are well used 




� Small business 9 kiosks, power rental, 

Wartel, fridge, carpenter 

� Tariff structure unchanged 

(800/kWh; 5,000/.5A)



Conclusion HS OELEDO 

• Technical 

• System in operation 


• Good/competent O&M 

– Financial 

– Good transparency in cash flows 

– High and competent fee collection enforcement 

� Management 

� Competent PLD management (org.+planning) 

� 100% PLD-User Service contracts signed 

� Noticable supervision by local Government 

• Socioeconomic 

Status SHS Oelnaineno 

• Technical 

• High user participation (PLD meetings) 

• Increase in productivity (Small business) 

• High user awareness for PLD scheme benefits 

• Operating days 165,943 

• kWh generated 

• Availability 0.96 (5,297 hours outage) 

– Financial 

– O&M account 77,748,000 




– PLD still active (4 staff, two drop-outs) 

– Management tools well used 



� Extension 15 taken systems (12 unused) 

� Small business 6 kiosks 


(10,000/m; 320,000/y)



Status SHS Lengkonamut 

• Technical 

• Operating days 111,397 

• kWh generated 

• Availability 0.97 (2,696 days outage) 

– Financial 

– O&M account 60,994,000 




– PLD still active (2 staff, four drop-outs) 

– Management tools well used 



� Extension 7 taken systems (no unused) 

� Small business 7 kiosks, carpenter and study light 


(10,000/m; 320,000/y) 

Conclusion SHS 

• Technical 

• Systems in operation 


• Good/competent O&M 

– Financial 

– Good transparency in cash flows 

– Missuse of revenues 

– Competent fee collection enforcement 

� Management 

� Competent PLD management (org.+planning) 

� 100% PLD-User Service contracts signed 

� Noticable supervision by local Government 


� High user participation (PLD meetings) 

� Increase in productivity (Small business) 

� High user awareness for PLD scheme benefits



CO2 Emissions Avoided 

Project 

Scenario 

AIJ concept 

Original 

AIJ concept 

14y 

Experience 

presently 

GENERAL 

CDM modalities 

Draft 

Medium term 

estimate 

Emissions Avoided 

(in t CO2) 

33,000 

15,000 

3,321 

4,735 

10,000 

Recommendation MHP/HS/SHS 

Comments 

Life : 30y MHP, 20 y HS, 

15 y SHS 

Life reduction to 14 y for 

all 

Due to: low consumption, 

feed-in + techn. Problems 

Low values of CDM 

modalities 

Feed-in+techn.problems 

solved 

Enhance Financial Management (transparency, misuse) 

Enhance capability for competent (grid) extension works 

Convince local governments to execute routine supervision / 

assistance function 

PARTICULAR 

Water management survey and enforcement (multiple use) 

Support for enhancing water ways 

Ensure operator presence at site 

Enhance preventive O&M (site close to sea) 

Enhance awareness for „electricity service“ scheme



Experience Sustainability 

Aspect Indicators Bokin Palean Taba Waikelosawa Oeledo Lengkonamut Oelnaineno 

Technical 

Reliability 

Financial 

Justifyability 

Economic 

Viablility 

System Availability low middle high low high middle middle 

Cash Flow Scheme not sustainable not sustainable sustainable not sustainable sustainable sustainable sustainable 

Investment Recovery low probability low probability low probability low probability low probability low probability low probability 

Manageability PLD Organization low fair good low good good good 

Replicability Acceptance/Performance 

Stakeholders 

low fair high low high high high 

Outlook Continuity low low high low high high high 

Acknowledgement 

For more information: www.e7.org 

clausdauselt@web.de 

klaus.baumann@rwe.com 

Thank You 

Remark: Remark ASEAN Award 2002 in the NRSE project category(sub-project category(sub project hydro power) 

UNDP/ICC Award 2002 for Sustainable Development at Johannesburg Summit, SA 

ASEAN Award 2004 in the NRSE project category(sub-project 

category(sub project PV-wind PV wind-hybrid) hybrid)

Lessons Learnt from Planning to Operation Remote Rural ...

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