Proceedings of Village Power ’98 Scaling Up Electricity Access for Sustainable Rural Development Volume I Convened by the National Renewable Energy Laboratory In collaboration with the World Bank World Bank Headquarters, Washington, D.C. October 6-8, 1998 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. 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October 6-8, 1998 Village Power ’98 Proceedings Organizing/Editing Team Julie Cardinal, NREL Larry Flowers, NREL Judy Siegel, World Bank Roger Taylor, NREL Jerome Weingart, Weingart & Associates Village Power ’98 Proceedings were produced by the National Renewable Energy Laboratory. For an additional copy of this document in hard copy (Vol. 1 & 2, $50.00) or CD-ROM ($10.00), please send a check to: National Renewable Energy Laboratory 1617 Cole Boulevard National Renewable Energy Laboratory Golden, Colorado 80401-3393 Attn: Conferences A national laboratory of the U.S. Department of Energy 1617 Cole Boulevard Managed by Midwest Research Institute Golden, CO 80401 for the U.S. Department of Energy Please include your name and mailing address. under contract No. DE-AC36-83CH10093 You can also find the Proceedings and more information about Printed March 1999 Village Power on the World Wide Web at: http://www.rsvp.nrel.gov Village Power ‘98 Tuesday, October 6, 1998 Page 09:00-09:30 Opening Session.........................................................................................................................................................1 •Caio Koch-Weser, Managing Director,World Bank •Richard Truly, Director, National Renewable Energy Laboratory ....................................................................................................3 •Allan Hoffman, U.S. Department of Energy .....................................................................................................................................5 09:30-10:00 Keynote Addresses.....................................................................................................................................................7 •Tim Wirth, Director, UN Foundation •Ambassador Leonard Spearman, Director, Renewable Energy for African Development...............................................................9 10:15-11:15 Defining the Problem: Scaling-up Electricity Access for Sustainable Rural Development - Chair, Callisto Madavo, Vice President for Africa,World Bank.....................................................................................................15 •The Asia Challenge - Mieko Nishimizu, Vice President, South Asia, World Bank .........................................................................17 •Latin America and Caribbean Needs for Rural Energy – Ambassador Christopher Thomas, Assistant Secretary General, Organization of American States ..........................................21 •The Challenge and Needs in Africa - Mark Tomlinson,World Bank 11:15-12:00 Meeting the Challenge to Rural Access - Chair, James Bond,World Bank ............................................................29 •Private Sector Strategy to Increase Rural Electricity Access – Herre Hoekstra, Shell Renewables..............................................31 •UN Sustainable Energy Initiative - Susan McDade,Energy and Atmosphere Programme, SEED and UNDP ..............................35 •Renewable Energy Finance: Matching Resources and Needs- Michael Allen,E&CO...................................................................41 •Technology Options for Meeting Rural Electricity Needs - Larry Flowers, NREL ..........................................................................55 12:00-12:30 1998 Village Power Road Warrior Award ................................................................................................................67 •Village Power Road Warrior Address – Bud Annan.......................................................................................................................69 14:00-16:00 Organizing for Scaling-up Electricity Access; Models for Sustainable Energy Delivery - Chair, Karl Jechoutek,World Bank ................................................................................................................................................75 •Key Issues in Scaling-up Rural Electricity Access - Arun Sanghvi,World Bank.............................................................................77 •Scaling-up Rural Photovoltaic Enterprises in Emerging Market Economies: The Case of China - Noureddine Berrah,World Bank •Mexico: Achieving Universal Coverage - Carlos Gonzáles, CFE, Mexico •Brazil Prodeem Program – Eugenio Mancini, National Department of Energy Development (DNDE), Brazil •South Africa ESKOM Renewable Energy Experience - Thulani Gcbashe, ESKOM...................................................................... 87 •Solar Electric Energy Delivery - A Business Model- Richard Hansen, SOLUZ, Inc..................................................................... 101 16:30-18:00 Panel Discussion: Roles and Consequences of Bilateral Donor Programs - Chair, Matthew Mendis, AED ......................................................................................................................................................115 •USA - Jeff Seabright, USAID .......................................................................................................................................................117 •Netherlands - Paul Hassing, DGIS...............................................................................................................................................125 •International Energy Agency - Bernard McNelis, IT Power..........................................................................................................131 •United Kingdom – Clive Caffall, DFID ..........................................................................................................................................139 18:00-20:00 Poster Session and Reception in the Atrium of the World Bank Wednesday, October 7, 1998 09:00-11:00 Promoting Productive Uses and Small Businesses for Rural Development - Chair, Khalid Siraj,World Bank....................................................................................................................................................155 •Promoting Productive Uses through Rural Enterprise Development - Jim Finucane, Indonesia SHS Project Support Group ................................................................................................................157 •Energy’s Role in Rural Income Generation: The Grameen Strategy - Dipal Barua,Grameen Bank .......................................................................................................................................................165 •Productive Uses of Electricity: Country Experiences - David Kittelson, NRECA .........................................................................187 •Small Scale Village Electrification; an NGO Perspective - Donella Bryce, Appropriate Technologies for Community and Environment ............................................................................. 201 •Capacity Building for Small Scale Rural Development - John Kadyszewski, Winrock.................................................................209 •Gender Poverty and Rural Electrification – Elizabeth Cecelski, Consultant ................................................................................229 iii Village Power ‘98 Wednesday, October 7, 1998 (Continued) Page 11:30-13:00 Panel Discussion: Role of Electric Utilities in Rural Electrification - Chair, Allan Hoffman, U.S. Department of Energy......................................................................................................................249 •Good Practices in Grid-Based Rural Electrification - Doug Barnes,World Bank..........................................................................251 •Decentralized Rural Electrification - Wolfgang Mostert, Consultant ............................................................................................259 •Utility Challenge for Distributed Generation - Carl Weinberg,Consultant.....................................................................................275 •Utility Response:. - Edison Technology Solutions - Jim Reilly ...................................................................................................................................285 - EJSEDSA in Argentina - Daniel Angel Sandoval - South Africa ESKOM - Thulani Gcbashe - Arizona Public Service (APS) - Peter Johnston ..........................................................................................................................295 - NRECA - Pete Smith 14:00-16:00 Power Supply Options for Decentralized Rural Electrification - Chair, Judy Siegel,World Bank ..................................................................................................................................................299 •PV Applications for Sustainable Rural Development - Peter McKenzie •Decentralized Rural Electrification in Zimbabwe - Alex Makomva, ZESA....................................................................................301 •Lessons Learned in Battery Charging Stations - Stephen Graham, Consultant ..........................................................................315 •Small Wind for Village Power - Michael Bergey, Bergey Windpower ..........................................................................................325 •Biomass Gasification for Village Power - Ralph Overend, NREL ...............................................................................................331 •Hybrid Power Systems in the Australian Outback - Stephen Phillips, AES Australia .................................................................. 347 •Diesel Retrofits: The Alaskan Experience - Richard Emerman, Alaskan State Energy Office ....................................................359 •Micro-hydro Mini-Grids - Andrew Barnett, Intermediate Technology Development Group ..........................................................365 16:30-18:00 Rural Energy Service Models - Chair, Jerry Weingart, Weingart & Associates ..................................................... 383 •Concessions: The Argentina Experience - Aldo Fabris, Ministry of Energy, Argentina ............................................................... 385 •Sunlight Power International Approaches in Morocco - Jeff Serfass and Dr. Abdelhanine Benallou, SunLight Power Morocco .....................................................................................393 •Battery Charging in Brazil - Michael Davis, Golden Genesis •Transition from NGO to Profit-making Enterprise - Priyantha Wijesooriya, Sri Lanka •Challenges for Viable RESCOs - Art Lilley, Community Power Corporation ...............................................................................403 •Empowering Rural Villages - Charlie Gay, ASE Americas...........................................................................................................413 •Solar Lighting for the Church of Africa - Bishop Alden Hathaway, Jr...........................................................................................419 Thursday, October 8, 1998 09:00-11:00 Financing Scale-up of Rural Electricity Access and Expanding Renewable Energy Markets - Chair, Paul Hassing, DGIS, The Netherlands .............................................................................................................................431 •Effective Intermediation: Experience in Asia RE Projects - Jim Finucane, Indonesia SHS Support Group.................................433 •Structuring and Justifying Financial Incentives - Subodh Mathur, Consultant .............................................................................445 •Inter-American Development Bank Experience in Renewable Energy Financing for Rural Development - Jaime Millan - Inter-American Development Bank ......................................................................................................................455 •Financing for Private Sector Renewable Energy Projects - International Finance Corporation (IFC)..........................................463 11:30-12:00 Closing Statements - Chair, Alistair McKechnie,World Bank..................................................................................467 •NREL – Roger Taylor...................................................................................................................................................................469 •World Bank - James Bond ...........................................................................................................................................................475 v Village Power ‘98 Appendix A Page Poster Session ............................................................................................................................................................................479 NREL Handouts Project Briefs .................................................................................................................................................................................513 Bibliography...................................................................................................................................................................................559 Renewables for Sustainable Village Power by Larry Flowers .......................................................................................................563 Lessons Learned from the NREL Village Power Program by Roger Taylor..................................................................................571 Village Power ’98 Attendees.......................................................................................................................................................577 Photographs ................................................................................................................................................................................631 vii Village Power ’98 Tuesday, October 6, 1998 09:00-09:30 Opening Session •Caio Koch-Weser, Managing Director,World Bank •Richard Truly, Director, National Renewable Energy Laboratory •Allan Hoffman, U.S. Department of Energy Brief Summary of Opening Comments at Village Power 98 Presented at Village Power 98 Scaling Up Electricity Access for Sustainable Rural Development Washington, D.C., October 6-8, 1998 Richard Truly Background This is the fifth Village Power workshop sponsored by NREL. We have held these meetings every year since 1993, to focus, challenge, and provide a forum for interaction among practitioners working in the field of using renewable energy technologies as an economically viable pathway to electrification of rural populations throughout the world. Starting with a small group of 30 colleagues in 1993, this “workshop” has doubled in size every year. When the NREL staff was planning for this meeting, they were hoping for something around 400 participants. We are now looking at over 500, and we apologize for the somewhat cramped accommodations. This overwhelming response, however, shows that the use of renewable energy to solve some of the world’s serious problems is coming of age. This meeting, this “conference” (it’s clearly no longer a workshop) marks a transition. A transition from the viewpoint that renewables are, and forever will be a technology of the future; to the reality that renewables have come of age, We have technologies available today, at today’s prices, that can make a substantive contribution to the pressing needs of environmentally sustainable development in the world. Challenges This reality is not without its challenges, of course: Our key challenges now are: How to grow this emerging technical and financial opportunity into a business reality that is large enough to matter – an unprecedented scale of implementation that can have serious energy significance on the world’s energy future. And how to do this quickly enough that it can begin to contribute to global environmental stabilization in a timeframe that matters. 1 Meeting these challenges and being effective supporters of renewable energy development and scale up, at a time of fiscal conservatism in the U.S. renewable energy sponsorship; and at a time of global economic slowdown in many of the countries with the biggest need for renewable energy deployment today – is itself a challenge. But the community of dedicated practitioners is clearly growing. All you have to do is look around the room. A few years ago, everybody coming to the Village Power workshops knew a large percentage of their participating colleagues. I suspect that even the most experienced of you don’t know more than 30 percent of the people in this room. This is good news! The community is growing, each of you with your own support, participating from your own unique perspective. Strength is in numbers. Strength is in diversity. You now have “critical mass” in both of these. This Village Power ’98 Conference, with it’s subtitle: “Scaling up Electricity Access for Sustainable Rural Development” is clearly a timely event. Have a great Conference, meet some new friends, and make your own mark on moving renewable energy technologies ahead in the global marketplace. 2 Brief Summary of Opening Comments at Village Power 98 Presented at Village Power 98 Scaling Up Electricity Access for Sustainable Rural Development Washington, D.C., October 6-8, 1998 Allan R. Hoffman - It is a pleasure to welcome you on behalf of Secretary Richardson, Assistant Secretary Reicher and the U.S. Department of Energy - It is good to see so many people in the audience - more than 500, compared to the 33 who attended the first Village Power conference in1 993 - The Carter Administration took the first serious look at Federal policy for renewables in 1978 by carrying out the 30-agency Domestic Policy Review of Solar Energy - The past two decades have seen considerable progress in renewables development, and today renewables is becoming a big and growing business - The World Bank, through its Solar Initiative and subsequent actions has a unique opportunity to advance worldwide use of renewable energy and make a real difference in people s lives - Energy is key to rural development - Use of renewables is key to reducing local environmental impacts of energy use in rural areas, particularly impacts on women and children in developing nations who often carry most of the burdens associated with gathering fuel and using energy - Use of renewables is also key to addressing global climate change issues arising from energy use - While today s energy system is largely dependent on fossil fuels, this situation cannot be projected into the long-term future - We are in the early stages of an inevitable transition (50-100 years) to a new world energy system largely dependent on renewables 1