Green Business Area case study PRODUCTIVE POWER USE WITHIN RURAL AFRICA WORKSHOP

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Julianna Brown
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1 Green Business Area case study PRODUCTIVE POWER USE WITHIN RURAL AFRICA WORKSHOP GERES Jean Billant Research Advisor - July 2017

Energy access situation in Africa 650 million people do not have access to electricity in Africa 85 percent of the energy poor live in rural areas Solar PV energy becoming

2 Energy access situation in Africa 650 million people do not have access to electricity in Africa 85 percent of the energy poor live in rural areas Solar PV energy becoming competitive with fossil fuels Decentralized Renewable energy solutions can accelerate universal energy access Productive power use within rural Africa workshop June

Solar devices: lanterns A range of solar Off-Grid technologies Users : 1 Uses: lighting Capacity: 0.1-0.

3 Solar devices: lanterns A range of solar Off-Grid technologies Users : 1 Uses: lighting Capacity: kW - Price/kWh: $$$$ Main grid connectivity: No Solar Home System Solar Productive Systems Microgrid/Minigrid Users : 1 Uses: lighting, mobile charging, television Capacity: 0.5-2kWp - Price/kWh: $$$ Main grid connectivity: No Users : Up to 10 HH and/or 3-5 businesses Uses: lighting, small productive uses Capacity: kwp - Price/kWh: $$ Main grid connectivity: No Users : Up to 500 HH and/or 20 businesses Uses: all uses Capacity: Up to 200 kwp - Price/kWh: $ Main grid connectivity: Yes Promote economic development through productive uses of energy Global Productive Solar power Finance use & within Investment: rural Africa Emerging workshop PV Markets June 2017 June

4 Adapted to different contexts and uses Hamlet Domestic uses Productive uses Village Green Business Area Small Town Green Business Area Global Productive Solar power Finance use & within Investment: rural Africa Emerging workshop PV Markets June 2017 June

Proposed solution: the Green Business Area Green Business Area

Rural MSMEs gathered in a same location with : 1 - Electricity

Business incubation/acceleration: business development support

solution for access to electricity for productive uses in

the technical constraints related to the provision of

Finance Solutions use & within Investment: Center rural

5 Proposed solution: the Green Business Area Green Business Area (GBA) Hybrid electricity production: Solar PV biofuel/diesel Rural MSMEs gathered in a same location with : 1 - Electricity access 24/7 2 - Professional spaces for their activity 3 - Business incubation/acceleration: business development support activities & access to finance Stand alone micro-grid Viable solution for access to electricity for productive uses in off-grid rural areas Add-on to an existing mini-grid Decrease the technical constraints related to the provision of electricity to MSMEs Global Productive Clean Energy Solar power Finance Solutions use & within Investment: Center rural Practitioners Africa Emerging workshop Network PV Markets June Webinar 2017 June January

6 Renewable Productive power Energy use boot within camp, rural Energy Africa Centre workshop of Vlerick June Business 2017 School March

7 After two years of operation in Konseguela 100% renewable energy mix 10 MSEs installed on site 6,5MWh in MWh in ,5kWp Solar PV Green Business Area 16 kva GenSet with jatropha oil 550m² (bioclimatic) building to be rented 64 TeqCO² avoided 34 jobs created and 5 jobs sustained revenues for the MSMEs in in Overall Costs Energy Infrastructure Building Installation & operation Business Dev Support 10 years Cashflows 2016 (Year 1) 2018 (Year 3) 2023 (Year 8) 2024 (Year 9) 2025 (Year 10) Revenues Expenses Cashflows Cumulated cashflows Global Productive Solar power Finance use & within Investment: rural Africa Emerging workshop PV Markets June 2017 June

8 Replication at large scale of Green Business Area by DESCOs Energy Infrastructure Building Financed through a mix of investment & subsidies Installation & operation Business Dev Support Economic return Revenues generated by rents and energy services cover OPEX and pay back a part of CAPEX Diurne consumption equilibriates domestic consumption = lower capital costs Socio-economic impacts Job creation Enterprise creation and development Local economic value creation Low carbon and inclusive economic growth Renewable Productive Global Solar power Energy Finance use boot & within Investment: camp, rural Energy Africa Emerging Centre workshop of PV Vlerick Markets June Business 2017 June 2017 School March

9 Best practices and lessons learned Assessment of local energy needs Thorough understanding of the MSEs business Business Development Support activities Access to finance Quality of electricty as important as price for the MSEs Renewable Productive power Energy use boot within camp, rural Energy Africa Centre workshop of Vlerick June Business 2017 School March

10 Renewable Energy boot camp, Energy Centre of Vlerick Business School March

Thank you for your attention! www.geres.

11 Thank you for your attention! Renewable Energy boot camp, Energy Centre of Vlerick Business School March Global Solar Finance & Investment: Emerging PV Markets June 2017

Government of Nepal Ministry of Population and Environment. Alternative Energy Promotion Center (AEPC)

Government of Nepal Ministry of Population and Environment Alternative Energy Promotion Center (AEPC) Pro-Poor Public-Private Partnership (5P) Approach International Workshop on Best Practices and Business