1

RURAL ELECTRIFICATION WITH BIOGAS IN SANTA ROSILLO, PERU

Author: Martijn VeenCountry: PeruSector: Renewable Energy

IntroductionThe use of biogas-fueled systems for providing electricity access to isolated communities remains a rarity on the global renewable energy arena. SNV’s work with the community of Santa Rosillo in the Peruvian Amazon is a pioneering example in this view. For Julio Barbaran, the community administrator of the system, this project “is very important and new for the Chipurana Valley, for San Martín and even for all of Peru. It is a project with a real impact”.

The project presented in this case study seeks to validate an electricity generation model for isolated communities, using biogas produced from local biomass waste and proposing a community-based management scheme for the operation, maintenance and administration of the chosen generation system.

The BioSynergy project seeks to demonstrate the technical, social, economic and environmental feasibility of an integrated and self-sufficient energy model based on local production of biogas from biomass to generate electricity in remote communities of the Peruvian Amazon for domestic, social and productive use. The project was executed by SNV in alliance with Practical Action and local partners, with funding from Cordaid and FACT Foundation, and co-financed by the Regional Government of San Martin.

Through the validation of this experience, SNV and its partners will seek to replicate this project in other areas of the country and beyond, as an alternative way to power isolated communities and to increase the quality of life of the low-income segments of these populations, recognising a key role to play for the private sector in implementing these models.

BackgroundThe BioSynergy Project, or project for “Access to Renewable Energy and Inclusive Business Promotion with Sustainable Biofuels in Isolated Communities of the Peruvian Amazon”, has been financed by the Catholic Organisation for Relief & Development Aid (CORDAID) and FACT Foundation and executed by SNV in alliance with Practical Action and the Regional Government of San Martín with its Regional Department of Energy and Mines (DREM).

The community of Santa Rosillo was selected after an assessment of 35 isolated communities based on multiple criteria including organisational capacity, accessibility and availability of communication channels year round; a lack of favourable alternatives for access to energy; the existence of agriculture and animal breeding at a scale sufficient for producing the required amount of energy; and the presence of a sufficiently dense and populated area. Particular reasons for choosing Santa Rosillo were the community’s high level of organisation and its semi-stabled system for enclosing its cattle, built around a communal corral that would allow centralised access to large amounts of fresh cow dung.

CONTEXT

2

The decision was made to work with lagoon-type biodigesters covered with a geo-membrane, more affordable than other digester types, easier to install and available from local providers in the Peruvian market.

Process design, installation and implementation The design and installation process was comprised of several stages:

1. Mapping of the local companies with the capacity to provide high quality services around the installation and operation of biogas systems.

2. A community survey, including a socio-economic description of the community, an analysis of the major available types of agricultural, livestock and household waste; an evaluation of the potential technologies to be used given these various data and other important factors including access to water; and an assessment of the degree of interest among residents and of community organisation features

3. Geo-referencing of the community to inform grid extension and system design.

4. Coordination meetings to report on project advancement, agree on upcoming activities, form the relevant communal groups and conduct training activities.

5. Technical design in conjunction with the Regional Department of Energy and Mines of San Martín.

6. Purchase and installation of the system in a joint effort between the chosen suppliers and the community.

7. Management model definition and roll-out: drawing from the identified community features and adapted from a model used by Practical Action for hydraulic micro-hydro plants in Peru, the chosen management model determines the responsibilities of each local stakeholder in system administration, operation and maintenance so as to ensure overall project sustainability.

SNV INTERVENTION

Figure 1 - Opererational Scheme for the System

3

The technical design of the system was based on data derived from the community survey. Alongside adjustments made to the cattle corral and the installation of a water pumping system and of an electricity distribution network across the community, the design was based on two key components: 1. Dimensioning of the Electricity Generation System and,2. Dimensioning of the Biodigester System and related infrastructureGenerator capacity was calculated using the aggregated energy demand of Santa Rosillo’s 42 households, projected 20 years into the future and including public lighting, demand for productive uses and domestic and institutional demand. Assuming that the entire community would start using the electricity generated by the system at once, the result was a present demand of 12.4 kW, translating in a projected demand of 16 kW by 2021 with a population growth rate of 2.6%.

System design was defined based on the amount of fresh manure collected daily in the corral (162 kg in average) and can be visualized hereunder:

Figure 2 - Visualisation of the Installed System 936

Item Unit Amount

Total liquid volume of the biodigesters m3 150

Liquid volume of each biodigester (x 2) m3 75

Mixing Ratio M a n u r e : Water

1:6

Generator 1 kW 6

Generator 2 kW 10

Table 2 - General Data on the Installed Systems

Type of Maximum Daily load Nightly Load

Load Power (kW) sf uf P o w e r (kW)

sf uf Power (kW)

Domestic 16.80 0.20 0.50 1.68 0.70 0.90 10.58

Public Lighting 1.12 0.00 0.00 0.00 1.00 1.00 1.12

Institutional Demand 2.00 0.60 0.60 0.72 0.20 0.50 0.20

Productive Use 5.00 0.30 0.50 0.75 0.20 0.50 0.50

Daily total 3.15 Nightly total 12.40

Table 1 - Calculation of Power (Sf: simultaneity factor, uf: use factor)

4

Management model Three primary objectives for the applied management model were to:

1. Define the roles of the participating agencies and stakeholders 2. Promote a community-based business culture, in which decision-

making is driven by the economic, social and environmental aspects of the service

3. Strengthen local capacity through the creation of a local enterprise able to manage a sustainable service for the common good

Participants in this local management model were supposed to interact as follows:

The Communal Electrification Steering Committee (GIEC), comprised of community authorities elected by system users in a general assembly, serves as a coordination body between the executing institutions and community members until the final consolidation of the system. The GIEC will then be replaced by the USEC in overseeing operation and maintenance, gaining a support and oversight role, monitoring the USEC’s compliance with its duties towards electricity users.

The Communal Energy Services Unit (USEC) comprised of one or two community members selected in the general assembly and trained by the technical team. The USEC is responsible for conducting activities related to the operation, maintenance and administration of the system; it has a direct and ongoing relationship with the users, the community and municipal authorities. Its role includes establishing individual contracts with the users; collecting their monthly fees and depositing them into a joint account created within a local bank; preparing financial and operational reports, presented every three months to the community; and participate in the maintenance fund.

The Municipality is the formal owner of the system: representing community members, it will commission and supervise the USEC in the fulfilment of its operation and maintenance duties, drawing information from a quarterly report.

The Users: community members who wish to be connected to the microgrid gain access to electricity services by signing a contract with USEC. In return, they incur a number of responsibilities that include collecting manure from the corral and feeding the biodigestors on a punctual basis, paying a monthly fee for the service and participating in user assemblies and in maintenance activities.

Figure 3 - Management Model

5

Maintenance Fund: the fee incurred by service users is primarily used to compensate the operator and administrator of the system, pay logistical and administrative costs, and finance the maintenance of the system in the long run.

Alongside these various assigned responsibilities, the implementation of the management model entails the development of capacity building activities for all the stakeholders involved, including training on rational energy use (promoting energy efficiency), administration, operation and maintenance of the system, etc. Executing institutions play the role of facilitators throughout the process, involving all stakeholders and providing recommendations on technical, legal, social and organisational elements.

Results and Impacts

The integrated nature of the proposed biogas solution has enabled several significant impacts from an environmental, social and economic perspective:

Access to sustainable energy is the most visible impact of the implemented model. Although biogas consumption is only starting to increase, the system has enough capacity to provide for the present and future energy needs of the entire community, and their newly gained access to energy is highly appreciated by the population, alongside the benefits associated with it. These benefits include improved health and education services, so far limited due to the remoteness of the community, and a greater potential for the creation of community businesses, resulting in increased employment and income generation.

The system also offers a large potential for climate change mitigation and environmental protection, with an average consumption of 18m3 of biogas per day, consisting for over 60% of methane that is no longer emitted to the environment, and replacing the use of 3,285 litres of diesel per year.

The bioslurry obtained as a by-product of biodigestion is now used as an organic fertilizer to increase local crop production and added in the cultivation of pastures to improve cattle feed, leading to increased agricultural productivity.

Costs and Economic FeasibilityWhile the installation costs for the system remain high (USD 125,000 after the technical design) the model went through an extensive financial analysis, including a comparative study of different electrification scenarios for the community using several alternative energy sources. The analysis revealed that with some slight improvements in the system, the cost of electricity produced from biogas would compare favourably with photovoltaic solar energy, diesel generators and diesel/solar hybrids with a projected electricity cost of USD 0.59/kWh for 2011-2031, or even less valuating the bioslurry. Based on this analysis, biogas driven electrification appears to be a financially attractive alternative for communities with limited energy access prospects.

Figure 3 - Installation of the biodigester Figure 4 – Training of community users

OUTCOME

6

Replication and scale-up In view of the estimated 910,000 inhabitants with restricted access to basic services like energy, water and sanitation in the Peruvian Amazon, the production of energy from biomass appears to be a promising option for rural electrification across the region. The experience of Santa Rosillo shows that, even in the most isolated communities, electrification derived from biogas is a technically, socially and economically viable alternative that can compare favourably with other technologies. With no prospects of accessing electricity by other means, remote communities can obtain biomass from agricultural or livestock waste and use it to produce biogas thereby meeting their energy needs. Several institutions could support the dissemination of such systems, including private sector, local NGOs and regional energy agencies from the government that can help strengthen user capacities and ensure proper technical assistance. Further interventions towards scale-up should include the creation and training of specialised companies for scale-up and replication. An additional pilot project has already been created in the “El Porvenir” Experimental Centre in the National Agrarian Innovation Institute and will be used for demonstration, research and capacity building purposes.

ConclusionsThe BioSynergy project in Santa Rosillo was based on a non-recoverable investment. The aim of this pilot intervention was to demonstrate that sufficient electricity could be generated from biogas production based on cow dung and local crop residues to meet the energy demands of an entire community for domestic, social and productive uses, while exploiting the associated by-products for productive purposes. This goal was achieved thanks to the solidity of the management model used and the relentless efforts of the chosen community.

The project thus demonstrates the feasibility of bringing in a technically, socially, environmentally and economically sound solution for rural electrification based on the use of locally available biomass residues. Financial-economic analysis showed the model to be a financially attractive alternative for isolated communities when compared to alternatives with photovoltaic solar energy, diesel generators and diesel/solar hybrids. While the model appears viable including infrastructure, installation and transportation costs, the overall costs of the project remain high. In future scale-up cost reductions can be achieved by: (i) reducing the costs of technical assistance through the knowledge development and dissemination as achieved in this project, with all applied methodologies and studies publicly available; (ii) curtailing the installation costs by using locally available/cheaper equipment and building only the indispensable infrastructure. For those communities that cannot strictly rely on biomass, dual diesel/biogas systems are another pathway to be explored.

For more information, see www.biosinergia.org