productive use of energy services – an experience …pooja sharma productive use officer giz/endev...
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Page 110/25/2013
Productive Use of Energy Services –An Experience from GIZ
POOJA SHARMA
Productive Use Officer
GIZ/EnDev Nepal
Page 2
EnDev
10/25/2013
• An output oriented, co-financed global energy access program since 2005, active in 24 countries
• Promotes sustainable access to modern energy services
• Objective is to connect 6.1 million people by 2015
GIZ
The German state owned implementing organization for sustainable development
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Page 4
What is Productive Use of Energy Services
10/25/2013
“Agricultural, commercial and industrial activities involving energy services as a direct/indirect input to the production of goods or provision of services with increase in income or productivity”
• Wider & Narrow Definition of PU• Emergence of New Ones and
increase productivity of existing ones
Rural Electrification is not an end but a means
Page 510/25/2013
Why Productive Use?
Need to accompany energy access programmes with PUE promotion activities
(Productive Use Study – conducted by GIZ and ESMAP)
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Why Productive Use?
Promote rural economic productivity – Socio Economic Need
PUE has the potential to increase impact of electrification through increased income, employment etc.
underpin the creation and upgrading of value chains
facilitate diversification of economic structures and livelihoods
Creates opportunity not only for the end users
but also for the manufacturers (cook stoves – PU for Thermal)
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Promote financial viability/sustainability of the Energy Service Providers
The higher the demand density and the capacity to pay for electricity, the easier it is to achieve financial viability of rural energy service
Why Productive Use?
Source: NACEUN
0
5000
10000
15000
20000
25000
30000
35000
40000
Sra
Bh
a
Ash
Ka
rt
Ma
ng
Po
us
Ma
gh
Fa
lg
Cha
i
Ba
i
Jest
Asa
d
Electricity chargewith Ind
Electricity chargewithout Ind
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
kWh units withIND
kWh units withoutIND
kW
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Energy Project
Demand Density
Willingness to pay
Capacity to Pay
Administrative
efficiencyTechnical Expertise
Current Operation
Future Cost &
Maintenance Fund
Demand Growth for
both Domestic&P
U
More Thoughts for Productive Use Promotion?
Page 925/10/2013
Operational Guidance for PU Promotion
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Page 11
Productive Use Examples in Different Countries -Afghanistan
10/25/2013
• GIZ supports construction or rehabilitation of 9 micro-hydro projects as well as PUE promotion through micro utilities
• Provincial electrification planning considers productive use potentials
• Technical training followed by business training
• Advice on selection of equipment incl. for existing businesses that switch from diesel to electricity- powered equipment
• Supply of 3 phase boards & motor protection relays
The share of productively used electricity increased by more than 15 % p.a.
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Productive Use in Nepal
10/25/2013
Capacity Building of local Energy Service
Provider
Capacity Building
of Enterprise
Service Providers
Awareness CreationEnergy Calendar
Business Plan
PU Facilitation
Incentive Package
Identify Clients
Business Plan of MSMEs
Facilitate Credit Linkage
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What about your projects?
10/25/2013
• Relationship Of PU with efficacy of RE Programs
• Understanding of PU promotion and Business Development at Energy Service Providers’ level
• Understanding of PU activities at the end user level
• Availability and willingness of Credit programs
• Knowledge of PU Promotion within the energy practitioners
• PU strategies in Business Plan/Strategic Planning (facilitate community to do PUE, do by investor, do a community PUE….)
• Implementation Strategy (Incentive Packages – Differential tariff, Demand Charge subsidy, Low margin retailing on appliances)
• New applications which require Engineering Support (energy efficiency, innovation)
• Target beneficiaries (women & vulnerable group - Traditional division of labour
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More information:
www.energypedia.info
www.produse.org
Contact: pooja.sharma@giz.de
THANK YOU!
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