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Providing Village-Level Energy Services in Developing Countries

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Providing Village-Level Energy Services in Developing Countries MALAYSIAN COMMONWEALTH STUDIES CENTRE Providing village‐level energy services in developing countries October 2012 Meghan Bailey | Justin Henriques | John Holmes | Ruchi Jain MCSC Providing village‐level energy services in developing countries | October 2012 | i Executive Summary A scoping study has been undertaken of the provision of village‐level energy services in India, Tanzania and Ghana, three Commonwealth countries. The study has been funded by the Malaysian Commonwealth Studies Centre and has arisen from discussions during 2011 between Malaysian Commonwealth Studies Centre and the European Academies Science Advisory Council (EASAC). Its aims have been to: evaluate the potential of candidate technologies to meet the needs of rural communities in developing countries; review the social, economic, and policy/regulatory factors influencing the uptake and implementation of alternative technologies; identify the distinctive contribution of a potential EASAC study in relation to other initiatives in the focus countries; and with a view to a second phase study design workshops to be held in the focus countries to inform, and bring together, key stakeholders, and identify who those stakeholders are. This scoping study report will inform a decision on a second phase study, which would be undertaken by EASAC in collaboration with the relevant national Academies, to inform key stakeholders in the focus countries on appropriate technologies and the conditions necessary for their development and implementation, bring stakeholders together in those countries to stimulate the establishment of appropriate development and implementation initiatives, and advise European policy makers concerned with international development on the associated scientific and policy issues to inform development of EU policy. The study’s concern is the 1.3‐1.6 billion people in the world without access to electricity, and the 2.7 billion people without clean cooking facilities. The report provides an overview of the issues associated with the provision of sustainable energy services to these populations, who are largely situated in rural villages, including an evaluation of appropriate energy technologies and a review of the opportunities arising from access to energy, not least to transform educational opportunities. For each of the focal countries – India, Tanzania and Ghana – the current energy landscape is reviewed and the issues arising from village energy provision are explored through series of case studies. MCSC Providing village‐level energy services in developing countries | October 2012 | ii A general conclusion from this scoping study is that while there are both Government‐led and NGO initiatives, village energy provision needs to be higher up Governments’ agendas, which tend otherwise tend to take a more centralised view, emphasising large‐scale electricity generation and grid extension. Such approaches prioritise urban populations and often offer rural populations little immediate prospect of reliable access to electricity. The case studies identify photovoltaic cells and biomass‐based technologies as key options, but small scale hydro and wind generators can also play a role according to local circumstances. Choosing the most appropriate technology is only one of the necessary ingredients for successful rural energy service provision. Indeed, institutional capacity, availability of an adequately trained and technically proficient human resource, and the social context are often more important to the sustainability of an energy service than the technology selected. A consistent message is the effectiveness of social business (or social enterprises) as a model for knowledge transfer and development. A social business can be profit or non‐profit; it combines business methods and strategies to achieve philanthropic outcomes. There are also opportunities emerging through the parallel development of technologies and initiatives which rely on a supply of sustainable electricity. For example, there is significant opportunity arising from the provision of energy and the availability of low power consuming information communication devices. This includes power for connected tablets and mobile phones, which open up new opportunities for education and business. Several recurrent barriers to success were identified through the case studies, including: the lack of sufficient technically proficient people to design, install and maintain energy installations; difficulties for entrepreneurs and their prospective clients in accessing ‘affordable capital’ and/or subsidy/incentive schemes; poor quality products, which can get a technology a bad name, and the poor availability of reliable information to enable purchasers to distinguish the good from the bad; and the limited standardisation of rural energy as a way to ensure good business practice and enable scale‐up. MCSC Providing village‐level energy services in developing countries | October 2012 | iii The report discusses various responses to address these barriers. It concludes that a phase 2 study has the potential to add value to existing initiatives to address village energy provision, and would appropriately be taken forward by EASAC working in collaboration with the national Academies of the countries concerned. The Academies are a preferred source of authoritative scientific advice for governments and society and have good ‘convening power’ if workshops are set up to bring together key players to address key issues associated with village energy development. Such workshops would need to select a limited number of key issues to address, and the report makes suggestions as to where the focus may most appropriately lie. MCSC Providing village‐level energy services in developing countries | October 2012 | iv MCSC Providing village‐level energy services in developing countries | October 2012 | v Table of Contents EXECUTIVE SUMMARY II TABLE OF CONTENTS VI CHAPTER 1: STUDY AIMS AND MOTIVATION 2 1.1 Study aims 2 1.2 Motivation for the Study 3 1.3 Conduct of the study 4 1.4 Report overview 5 References for Chapter 1 6 CHAPTER 2: OVERVIEW OF PRESENT SITUATION 8 2.1 The current position 8 2.1.1 Public Health 8 2.1.2 Local and National Development 9 2.1.3 Education 10 2.1.4 Inequalities 11 2.1.5 Environmental 12 2.2 Rapid urbanization 13 2.3 Using distributed energy for energy provision 14 CHAPTER 3: SURVEY OF TECHNOLOGIES, RESEARCH INSTITUTIONS, FINANCING MECHANISMS AND MODELS FOR TECHNOLOGY TRANSFER 20 3.1 Survey of Technologies 20 3.1.1 Energy production technologies 22 3.1.2 Key energy using technologies 28 3.2 Research and related institutions 30 3.3 Models for Knowledge & Technology Transfer 32 3.3.1 Social Businesses 32 3.3.2 Community Credit Systems 33 3.3.3 Opportunities to change international aid policy 34 MCSC Providing village‐level energy services in developing countries | October 2012 | vi 3.4 Risks to intervention failure 34 3.4.1 Supply chains considerations 35 3.4.2 Economic and financial considerations 35 3.4.3 Human resource considerations 36 3.4.4 Institutional considerations 36 3.4.5 Environmental and natural resource considerations 37 3.4.6 Socio‐cultural considerations 37 References for Chapters 2–3 38 CHAPTER 4: CASE STUDIES FROM INDIA 42 4.1 Introduction: Overview of India’s energy landscape 42 4.1.1 Overview of rural electrification policy in India 49 4.1.2 Decentralized power generation in India: 52 4.1.3 Grid versus off‐grid 54 4.1.4 Case studies introduction 56 4.2 Biomass Energy 57 4.2.1 Introduction 57 4.2.2 Decentralized power based on biomass gasifiers 58 4.2.3 Improved cook stoves 60 4.2.4 Biogas energy 62 4.2.5 Introduction to biomass energy case studies 62 4.2.6 Case Study 1: Husk Power Systems 62 4.2.7 Case Study 2: DESI Power 68 4.2.8 Case Study 3: Appropriate Rural Technology Institute (ARTI) 75 4.3 Solar Photovoltaic (PV) 85 4.3.1 Introduction 85 4.3.2 Energy policy for PV 88 4.3.3 Case Study 4: Selco Solar (The Solar Electric Light Company) 90 4.3.4 Case Study 5: Barefoot College 99 4.3.5 Case Study 6: Mera Gao (My Village) 102 4.3.6 Case Study 7: ONergy, (Punam Energy Pvt.Ltd) 108 4.3.7 Case Study 8: Pragati Pratisthan 113 4.3.8 Case Study 9: TATA BP SOLAR 120 4.3.9 Case Study 10: Simpa Networks 126 4.4 Hydro power 127 4.4.1 Overview of Small Hydro & Watermill Hydro in India 127 4.4.2 Case Study 11: Prakruti Hydro laboratories 133 MCSC Providing village‐level energy services in developing countries | October 2012 | vii 4.5 Wind power: Case study 12 139 4.6 Cross‐cutting Study: SPEED: Case Study 13 142 4.7 Conclusions and recommendations from case studies 146 References for Chapter 4 155 INTERVIEWEE LIST: 162 CHAPTER 5: CASE STUDIES FROM TANZANIA & GHANA 164 5.1 Introduction 164 5.1.1 Traditional Biomass Consumption 166 5.1.2 Energy and water security 166 5.1.3 Scale of energy service delivery: households vs. communities 167 5.1.4 Energy Research Capacity Building 169 5.1.5 Case study Countries 171 5.2 Ghana: Overview 172 5.3 Tanzania: Overview 174 5.4 Case Studies 176 5.5 Case study 1: Tanzania: Microbial Fuel Cells 176 5.5.1 Technology 177 5.5.2 Partners & Financing mechanism 178 5.5.3 Process and Approach 178 5.5.4 Business Model 178 5.5.5 Key Challenges 179 5.5.6 Media coverage 180 5.6 Case study 2: Tanzania: Biogas 180 5.6.1 Technology 180 5.6.2 Partners & Financing mechanism 181 5.6.3 Process and Approach 181 5.6.4 Business Model 182 5.6.5 Key Challenges 184 5.6.6 Media Coverage 185 5.7 Case study 3: Tanzania: Battery powered ‘portable grid’ 185 5.7.1
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