EDITO

NEWS FROM THE ALLIANCE

• New members
• ARE and the World Futur Council become official partners
• New publications of the Alliance
• 24th EUPVSEC: Official release of the Study "Potential of on-grid photovoltaic solar energy in developing countries" 
• Follow the Alliance for Rural Electrifcation on Facebook and Twitter!

ARE ACTIVITIES

• ARE Workshop at the 24th European PV SEC, Hamburg
• USAID workshop on “Grid connected RE and Cogeneration/independent power”
• Conference Session at Solar Power International 2009 on “Solar Opportunities in the Developing World”
• Training Workshop about renewable technologies for the CDE
• News from ARE Working Groups
• Launch of the 2nd EU Energy Facility: 200 Mio Euros for energy projects in ACP countries 

RURAL ELECTRIFICATION'S ACTORS, RURAL ELECTRIFICATION'S STORIES

• Energize Microfinance! MicroEnergy International 

NEWS FROM THE RURAL ELECTRIFICATION WORLD 

RURAL ELECTRIFICATION AND RENEWABLE ENERGY EVENTS

The Alliance is proud to present three new members:

EnerSys is a global leader in energy storage. Their extensive range of quality products is backed by more than one hundred years of experience in battery manufacturing and innovative technology. EnerSys operates over twenty manufacturing and assembly plants worldwide and has a strong marketing presence in more than 100 countries. As the world's largest industrial battery manufacturer, EnerSys is at the forefront of power storage technology, delivering effective solutions for a huge range of applications. With their knowledge on battery systems and proved experience worldwide, ARE expects to cover the important issue of energy storage for renewable systems. Collaboration and communication on the specific technological needs of rural communities’ batteries is essential for dimensioning a cost-effective system.

The Renewable Energy Academy (RENAC) in Berlin provides training and further education for engineers, investors, sales staff, lawyers, management, project developers and decision makers in the areas of renewable energy and energy efficiency. Its goal is to disseminate the excellent expertise available in Germany for the use of renewable energy and energy efficiency technology, domestically and internationally.

The Rural Energy Foundation (REF) is an independent, non-governmental organization which has been established to improve the living conditions of African households and entrepreneurs by stimulating the development of commercial markets for renewable energy products in rural areas. REF supports local entrepreneurs in setting-up renewable energy shops by facilitating access to finance for these entrepreneurs as well as the end-users. REF also implements large-scale awareness campaigns to stimulate demand for renewable energy products. In total, REF supports 199 renewable energy shops in ten countries in sub-Saharan Africa and employs 29 full-time professionals. They have been rewarded by the European Union in 2008.Through its membership to ARE, REF is willing to share and exchange knowledge on rural electrification and renewable energies, to access our network of companies and partners and to participate to a forum promoting energy access in rural Africa.

If you also would like to join our network please contact us.

In order to improve access to sustainable energy in Africa the Alliance for Rural Electrification (ARE) and the World Future Council (WFC) signed a Memorandum of Understanding to jointly fight energy poverty, especially in rural areas in Africa. 570 million people, i.e. more than 74 per cent of the population, do not have access to electricity in Sub-Saharan Africa. Electricity plays a major role in providing lighting, communication, information, health services and education. Moreover, lack of electricity constrains the economic development of rural areas.

Together, WFC and ARE will identify sustainable political, technological and financial solutions for rural electrification in Africa and take concrete actions to implement them. “ARE and WFC will establish a multistakeholder dialogue in Africa which brings together policymakers, the private sector and civil society in order to speed up rural electrification”, says Ernesto Macias, President of ARE. WFC founder Jakob von Uexküll adds: “We are going to hold strategy workshops with the African Union in order to strengthen this important institution on their renewable energy policies.” In all their activities, ARE and WFC will stress the importance of decentralized renewable energy production and the importance of incentives for local companies to provide sustainable energy to customers. WFC and ARE emphasize the importance of electricity for productive use and income generation.

World Future Council:
The Hamburg based World Future Council brings the interests of future generations to the centre of policy making. Its 50 eminent members from around the globe have already successfully promoted change. The Council addresses challenges to our common future and provides decision-makers with effective policy solutions. In-depth research underpins advocacy work for international agreements, regional policy frameworks and national lawmaking and thus produces practical and tangible results.
For more information visit: www.worldfuturecouncil.org

The publication “Green light for renewable energies in developing countries” underpins how development and access to electricity are intertwined. It highlights the pros and cons of various technologies. Cost breakdowns show that renewable energy is under most circumstances a very cost effective energy source. It recommends policies and financing schemes which can boost sustainable rural electrification.

To download the electronic version click here.

The publication “Best practices of the Alliance for Rural Electrification: what renewable energy can achieve in developing countries” presents the hands-on experience of ARE members. It highlights best practice examples of renewable energy projects in Latin America, Africa and Asia. The projects demonstrate that renewable energy lends itself for tailor made solutions under various natural conditions and for all scales of rural energy demands.

To download the electronic version click here.

The study “Potential of on-grid photovoltaic solar energy in developing countries” has been presented for the first time in PV SEC.

Carried out by AT Kearney Consultancy and jointly financed by EPIA and ASIF, this work entails research on electricity generation cost of grid-connected PV in developing countries and provides in depth market analysis as well as case studies for several model countries. The study highlights the potential of a market which has yet to be developed and recommends how the various stakeholders can contribute. Finally, it also constitutes a strong message to decision makers: PV is now a cost-effective option and could become accessible to the millions of people deprived from modern electricity services.

To download the executive summary click here.
(The study is only available for members of the organizations that commissioned it)

The Alliance for Rural Electrification has created its own Facebook page to complement our corporate website. You will be able to easily follow up the latest activities and news from us and from the Rural Electrification World, and more important, make your contribution by posting your comments, suggestions and questions. It is easy, just click here and let’s interact!

If you are interested in micro-blogging you can follow ARE Secretary General Guido Glania on Twitter. Search for https://twitter.com/guidoglania. Your retweets are highly welcome!

The Alliance for Rural Electrification (ARE) will be present at Solar Power International, Anaheim, California, the America’s largest solar event. Our workshop focuses on business opportunities in developing countries and will be held on Tuesday 27 October from 2:00PM to 3:00PM.

In this meeting our experts will give an insight into their experience acquired in these regions; present the latest information concerning the enormous potential that emerging and developing countries represent for both off-grid and grid connected PV technologies and; introduce some recommendations on how to enlarge these markets.

If your company or organisation is currently implementing projects in emerging and developing economies, or if you would simply like to know more about these new opportunities to expand your business, you are welcome to attend this session.

Panelists will be: Lars Koerner project engineering off-grid from SolarWorld AG, Michael Eckhart President of ACORE and Simon Rolland policy officer of ARE.

For more information: www.solarpowerinternational.com

On 13th of November, ARE is organising a workshop for the Centre for the Development of Enterprise's (CDE) senior staff, to present the state-of-art of rural electrification with renewable energies. This workshop will cover technologies, financing and legal frameworks and business opportunities for ACP countries (African, Caribbean, Pacific).

This workshop is the result of previous contacts between the two organizations, and it is expected to be a first milestone towards a closer collaboration.

The Centre for the Development of Enterprise is an ACP/EU joint institution created in the framework of the Cotonou Agreement. CDE’s financial resources mainly come from the European Development Fund (EDF). Its objective is to ensure the development of professional ACP enterprises operating in the private sector.

For more information about CDE: www.cde.int

Next meeting of ARE Working Group for Technological Solutions in Rural Electrification:

On Wednesday 21 October 2009 the working group on Technological Solutions will  meet in Frankfurt. This time the working group will focus on the International Standards and Quality Recommendations for Energy Home Systems and Mini-grids.
The chairman, Mr. Michael Wollny from SMA, will moderate all the related issues during the day such as the new challenges for mini-grid installations or communications between components.

Kick Off meeting of ARE Working Group on Legal and Policy frameworks for Rural Electrification:

In the 25th of November, ARE will also start a new experts working group on Legal and Policy Framework which is intended to deliver some key recommendation to public stakeholders on how to accelerate rural electrification with renewable energies.  
Stay tune. More information very soon.

On 4 November 2009 the European Commission will officially launch the new EU Energy Facility in Brussels. ARE-President Ernesto Macias will represent the private sector at this launching event. The facility is endowed with 200 Mio. euros which will be allocated as grants to support energy projects in ACP countries. The facility will have a strong emphasis on renewable energy. Stakeholders will be invited to propose projects (Call for Proposals).

The timing of the facility is as follows: By mid of January brief concept notes which indicate the key pillars of the projects have to be submitted. The Commission will then select the projects which are eligible for a second round in which fully fledged project proposals have to be handed in.  These comprehensive project proposals have to be submitted by June 2010.

ARE will inform its members about the details of the energy facility. We can also provide specific assistance as regards to project design (formalities and evaluation criteria of the European Commission).

Please get in touch with the ARE secretariat for further information.

As plausible as the idea of rural electrification on the base of renewable energies might seem, the list of real success stories in this area is short. Probably the best known example is Grameen Shakti. It has inspired many young companies, among them the German company MicroEnergy International (www.microenergy-international.com), which will be presented in this article.

Grameen Shakti was founded in 1996, as a part of the Grameen social-business family. With its new spin-off, the ambitious group wanted to look for solutions for the everyday energy supply problems of rural populations – and found answers in the form of “solar home systems”, encompassing in most cases microfinanced photovoltaic energy systems for domestic electricity supply.

Since then, development cooperation agents are fascinated by the rapid dynamics which have unfolded on the thatched and the ribbed roofs in Bangladesh: 220.000 Solar Home Systems have been installed by Grameen Shakti, with 8000 new systems being added to this figure every month. Already Bangladesh is the country with the most solar roofs worldwide. After Professor Yunus has taught the world a lesson in how to effectively fight poverty, it again seems, that there is a lot to learn from this remarkable country. Is the business model of Grameen Shakti a suitable concept for supplying 1,7 billion people living off grid with electricity? Can it even bring the breakthrough for renewable energy sources?

Motivated by these questions, four scientists of the Technische Universität in Berlin started what they called a Microenergy Project in 2001 and travelled to Bangladesh two years later to take a closer look at Grameen Shakti. For their research project, they identified different factors for the success of Grameen Shakti and developed initial approaches for the replication of the business model in other countries. With an interdisciplinary team of experts in power engineering, management consultancy and energy policy, as well as cooperation with microfinance institutes, two of the scientists set out to implement these approaches. Their undertaking assumed an organizational form with the foundation of the company MicroEnergy International.

Grameen Shaki – as it soon turned out – was a success story that could not be rewritten in the same way in other countries. Many of the single factors, which had contributed to the success of the model, occur in this certain combination only in Bangladesh. In its five years of business activity ME thus has developed solutions specifically tailored to different regions and stakeholders. A central role is played by MFIs in the selling of credit-financed energy systems. MFIs are thus given the chance to open up new markets with new technologies.

MicroEnergy prepares and conducts market studies for these MFIs in order to identify the energy requirements of their clients, and supports them in developing adequate business plans. If necessary, it organizes workshops for the qualification and further training of the employees, arranges technology partners or establishes a quality management system. It also helps MFIs to find financing opportunities by external investors, or invests its own capital.

Five years of experience in this new business area have shown that it is of particular importance to think outside the box. One of the greatest obstacles for rural electrification projects - paradoxically – lies in the expectations that the Solar Home System has raised with its attractive combination of environmental protection and poverty reduction. They can distract from the real needs of the clients. For instance, the best solution from an ecological point of view does not necessarily have to be the best means to fight poverty – under certain circumstances a connection to the grid can enhance the client’s life situation in a more effective and affordable way than a solar home system. Technology neutrality is a key factor for a successful engagement in the energy sector and thus a major principle for the work of MicroEnergy.

Technology is important but it must not be the decisive factor. Rather, it is one of numerous factors in a complex system, which has to be examined from various theoretical perspectives. For this reason, MicroEnergy focuses on cooperation with experts with a broad range of academic backgrounds. Only in this way can the sustainability of the projects be ensured.

The concrete experiences from the field are included in the scientific work carried out in Germany and thus, serve as a reference between theory and practical work. A central component of this scientific work is the Microenergy Systems Postgraduate Program, which was founded in 2007 at theTechnische Universität Berlin in cooperation with the Hans Böckler Foundation (www.planen-bauen-umwelt.tu-berlin.de/microenergysystems).

There, engineers as well as environmental planners, political scientists and environmental psychologists carry out research on the potential for microenergy systems as well as on product development,  manufacturing,  implementation,  use and impacts of these systems and discusses the results in an interdisciplinary dialog. An overview of the existing publications on microenergy systems can be found at www.microenergy-international.de/docs/ME_publications.pdf.

With their work, the researchers are covering new ground. The semantic field of “microenergy” as a scientific concept initially emerged in connection with the Microenergy Project and is now to be established as a new scientific field. Furthermore MicroEnergy has developed a range of new instruments, for example consulting instruments, that take account of the processes within the MFIs, or instruments for the development of strategies on the political level.

In addition, MicroEnergy advises technology companies with regard to product financing, with a focus on microfinancing, quality control and -management as well as service development. For technology partners, MicroEnergy offers a specific workshop where the so-called EPSS-method is used to find solutions for how to align their products to the requirements of MFIs. More information about the workshop is available on the MicroEnergy homepage.

Together with actors who have practical experience, MicroEnergy discusses the challenges of service and maintenance with regard to rural electrification in Africa. This Service and Maintenance Group has formed within the framework of the African Electrification Initiative and is moderated by MicroEnergy.

Two Rural Electrification projects within the finalists of the World Challenge 2009

Now in its fifth year, World Challenge 09 is a global competition aimed at finding projects or small businesses from around the world that have shown enterprise and innovation at a grass roots level. World Challenge 09 is brought to you by BBC World News and Newsweek, in association with Shell, and is about championing and rewarding projects and business which really make a difference. Two of the 12 finalists are directly related to Rural Electrification topics. The first one, in India, is the Barefoot Women Solar Engineers project of Mr. Bunker Roy. He trains African and Asian women from remote villages to be solar engineers and to bring solar energy for their isolated poor villages. The second project is the renewables off-grid Palestinian village set by two Israeli physicist activists in the West Bank. This project intends to improve the quality of life among any political or cultural issue and bring light and energy for their development.

If you would like to vote for them or any other candidate, and meet ten more sustainable projects, please visit http://www.theworldchallenge.co.uk 

The World Bank’s Board of Executive Directors approved the Additional Financing for Bangladesh Rural Electrification and Renewable Energy Development Project

Washington, 4 August 2009

IDA Credit: US$130 million
Terms: Maturity = 40 years; Grace Period = 10 years

The project aims to support Bangladesh's efforts to raise levels of social development and economic growth by increasing access to electricity in rural areas. The additional financing credit will help finance the costs associated with: (i) scaling up the project's renewable energy components which are improving off-grid electricity supply in rural areas through the installation of Solar Home Systems (SHSs) for affordable lighting, and also supporting electricity generation and supply from other renewable energy sources; (ii) introducing energy efficient Compact Fluorescent Lamps (CFLs) as part of a electricity demand side management program to help address the severe energy shortages in the country, which is particularly affecting the rural areas of Bangladesh; and (iii) rehabilitating additional electricity distribution networks in rural areas as part of the system loss reduction component of the project.

Media Contact: Erik Nora
For more project information click here.

India's REC negotiating $200 million loan-exec with US Insurer Aflac

Mumbai, 14 September 2009

Indian state-run lender Rural Electrification Corp (REC) is negotiating with U.S. insurer Aflac Inc for a $200 million loan, a senior company official said on Monday. The loan is part of a $500 million overseas borrowing plan of the company, H.D. Khunteta, REC's Finance Director told Reuters over telephone. "We are likely to get an offer from Aflac. They are more or less agreeable," he said.

Khunteta said company officials plan to visit the United States to discuss the loan with Aflac, the world's largest seller of supplemental disability insurance, and would also meet other U.S. investors to sell $300 million through bonds. "We have approached the Ministry of Power to give permission to visit the U.S. for detailed discussions with Aflac and meet investors for another $300 million through private placement of bonds," he said. "It will be a 12-year direct loan at a fixed rate of around 4.25 percent linked to six-month Japanese Libor" he said, adding the company planned to use the funds to lend to its clients.

Media Contact: Anurag Joshi – Thomson Reuters

Small hydro to help boost rural Africa development

Johannesburg/Kerugoya, 11 September 2009

Mini-hydro plants could be the answer to lack of power in rural Africa, especially as larger power projects are put on hold due to limited cash and abundant red tape. Analysts say the continent could generate as much as 330,000 megawatts (MW) from its hydro reserves, yet only some 7 percent of that potential has been exploited so far. But rather than trying to build big dams such as the Grand Inga dam in the Democratic Republic of Congo, which comes with political risk and an $80 billion price tag, communities and investors are looking into developing smaller plants. "It's a very effective way of providing electricity. The lifespan of a mini hydro scheme could be 20 years or more," said Steven Hunt, an energy consultant based in London. Hunt said most projects in Africa would be 10 kilowatts to 10 MW.

Mini plants satisfy people's basic needs, like the 0.75 kilowatt turbine in Kenya's Kerugoya village which gives access to power without forcing people to walk miles to the next town. "Now people can walk from their homes to this site and access the Internet, print and charge their mobile phones," said James Kinyua, the head of the project. The part self-help, part donor-funded project is one of many initiatives across Africa to bring electricity to people not yet covered by national grids. A mix of infrastructure bonds, mobilization of donor funds and even the small community's initiative like the one in Kerugoya are all fair game to increase electrification.

Civic group Practical Action is building 15 mini hydro plants in Zimbabwe, Malawi and Mozambique to light homes, schools and clinics and to irrigate fields.

Media Contact: Shapi Shacinda and Duncan Miriri – Kenya Reuters
Full article here.

Off-grid Solar for Madagascar

Paris, 15 September 2009.

A cooperation deal between battery company Saft and the energy management specialist Schneider Electric delivered an off-grid solar photovoltaic installation in rural Madagascar.
The new facility provides the village of Marovato on Madagascar’s east coast with energy for around six hours per day – mainly in the evenings – as an alternative to the kerosene and hand-gathered wood traditionally used by the 120 villagers.

The system has an output of 1.4 kW while the village currently uses only 490 W. The 24 V battery system, comprising 18 Saft nickel-based Sunica.plus 920 Ah cells, stores energy generated in the daytime by 24 BP Solar photovoltaic panels with an average output of 7 kWh.
This project is the first step in Schneider Electric’s energy access programme – known as BipBop, for Business, Investment, People at the Bottom of the Pyramid – that aims to create a virtuous circle combining business, innovation and social responsibility.

 “After access to clean water, access to electricity is one of the top priorities for many people in new economies,” said Gilles Vermot Desroches, senior vice president for sustainable development at Schneider Electric. “Our BipBop programme brings together forward-thinking partners like Saft to create solutions that disadvantaged communities can take ownership of. By including not just efficient technologies, but also training, knowledge transfer and well-targeted funding, the programme provides a truly sustainable business model. I believe this project is the first step in what will be a very long and successful programme of providing the world’s poor with safe, reliable, efficient, productive and green electricity.”

Full article here.

Lagos to Distribute 200 Transformers to Rural Communities

Lagos, 10 September 2009

As Nigeria continues to experience epileptic power supply, Lagos State is set to distribute 200 transformers to rural communities before the end of this year.
This came just as it launched solar-powered water closet toilets in Lekki area of the state aimed at serving communities which had been deprived of toilet facilities.

The state Commissioner for Rural Development, Prince Lanre Balogun, disclosed this during a tour of projects in Lekki area being undertaken by his ministry.
Balogun, who said the projects were parts of present government's efforts toward raising the living standard of the rural dwellers, added that the state government would be distributing 200 transformers to rural communities in the state before the end of this year, saying some of the communities had already got delivery of their transformers..

The commissioner said the governor had already approved the distribution of the transformers, adding that the next benefitting communities will soon take delivery of the transformers as the distribution is being done in batches.
On the first ever built solar-powered toilets, Balogun said the state government would understudy the solar-powered toilets for a period of time before deciding to build more of such in other parts of the state.

According to the commissioner, the machine which pumped the water from the borehole to the tank for use in the toilets, is powered by the solar panel, which serves as alternative to the epileptic power supply in the country.
He said most people in rural communities defecate in the environment because of unavailability of toilet facilities, saying this was what informed the state government's decision to build the communal toilet powered by solar energy to serve the community.

Media contact: Olasunkanmi Akoni and Monsur Olowopejo

The UN sets renewable energy as critical to address energy poverty

Senior UN representatives were among those calling for priority to be given to renewable energy in addressing energy poverty in the developing world at a renewable energy conference joint-organised by the United Nations Industrial Development Organisation (UNIDO) and the Mexican Ministry of Energy (SENER)

Full article here.

11 – 13 Nov 2009: Powering Africa: The Financial Options (PAFO), Cape Town, South Africa, Organisers: Energynet

Powering Africa: the Financial Options (PAFO) Executive Meeting in Cape Town provides an ideal occasion to discuss the ramifications of this improved environment and to examine how the African power sector can position itself to capitalize on any future financial upturn.

The meeting is a collaborative process and participants are consulted on topics they would like addressed. It is therefore useful to register interest as soon as possible. There is also a limited number of rooms allocated at Hotel Le Vendome. To benefit from their unmatchable rates we would also encourage you to book early.

More details are on the EnergyNet website: www.energynet.co.uk

17 – 19 Nov 2009: Nigeria Infrastructure Forum 2009 – Investment Opportunities in Power & Construction, Abuja, Nigeria.

In continued partnership with the Ministry for Works, Housing & Urban Development, Ministry for Transportation, Federal Capital Development Authority, Federal Capital Territory Administration, as well as the Nigerian Investment Promotion Commission, Bureau of Public Enterprises, and the Infrastructure Concession Regulatory Commission, the Nigeria Infrastructure (NIF) 2009 Conference & Exhibition will unite key decision makers, contractors and service providers with direct opportunities to develop your business over the next 10 years. Never before has the political will and the national sector been so strong to deliver such visionary goals to industrialise the country.

Nigeria Infrastructure (NIF) combines a commercial tradeshow and strategic conference which will deliver key information, business opportunities and networking events that provide the foundation of successful strategy implementation.

More details on the agenda here.

27 - 29 April 2010: International Small Wind Conference 2010, Glasgow Science Centre, Glasgow, UK. Organisers: BRE and BWEA

The British Wind Energy Association (BWEA) announced the venue and date of the next International Small Wind Conference: 27th and 28th April 2010 , Glasgow Science Centre, Glasgow, UK. Sponsorship opportunities, price listings, and 30-40 exhibition spaces will be made available in due course.

If you are not a BWEA member, but would like to be informed of future ISWC2010 updates, please register your contact details with A.Murley(at)BWEA.Com or www.bwea.com/mail/index.asp

29 – 30 April 2010: 5th European PV-Hybrid and Mini-Grid Conference, Tarragona, Spain. Organisers: OTTI

This European Conference will take place at the crucial moment where changes are shaping the electricity generation and distribution paradigm of the future. Among the major driving forces of this transition are the development of both PV Hybrid systems and their integration into micro- and mini-grids for high penetration of Renewable Energy Sources (RES). ARE members receive a reduction of 100,- Euros on the participation fee. Please refer to your ARE membership when registering.

More details on the agenda here.