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Page 1 10/25/2013 Productive Use of Energy Services – An Experience from GIZ POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal

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Page 1: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 110/25/2013

Productive Use of Energy Services –An Experience from GIZ

POOJA SHARMA

Productive Use Officer

GIZ/EnDev Nepal

Page 2: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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

Page 3: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 310/25/2013

Page 4: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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 5: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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Why Productive Use?

Need to accompany energy access programmes with PUE promotion activities

(Productive Use Study – conducted by GIZ and ESMAP)

Page 6: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 610/25/2013

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)

Page 7: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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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

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40000

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Electricity chargewith Ind

Electricity chargewithout Ind

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

kWh units withIND

kWh units withoutIND

kW

Page 8: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 810/25/2013

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 9: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 925/10/2013

Operational Guidance for PU Promotion

Page 10: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 1025/10/2013

Page 11: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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.

Page 12: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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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

Page 13: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

Page 13

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

Page 14: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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Page 15: Productive Use of Energy Services – An Experience …POOJA SHARMA Productive Use Officer GIZ/EnDev Nepal Page 2 EnDev 10/25/2013 • An output oriented, co-financed global energy

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More information:

www.energypedia.info

www.produse.org

Contact: [email protected]

THANK YOU!