Demand and Challenges of End Costumers In Botswana. Facilitator

Transcription

1 Demand and Challenges of End Costumers In Botswana

2 Felix Chavaphi CEO Energy Systems Group (Pty) Ltd Chairman Solar Industries Association of Botswana Absender Titel TT.MM.JJJJ Page 2

3 Background Energy Systems Group (ESG) Part of a Botswana registered Investment group, Zest Capital ESG in Botswana is trading as Solahart Botswana Primary business is energy management and has three business units: Solar water heating (solahart) Photovoltaic & Power solutions Mechanical & Built Environment solutions Emphasis is on providing renewable energy management solutions Distributor of several German solar products Accredited training provider in PV, Solar water heating and Energy Management (Botswana Qualification Authority) Absender Titel TT.MM.JJJJ Page 3

4 Botswana Solar Consumer Botswana Government Rural electrification for government staff houses, clinics, schools, etc Products include; Panels, inverters, controllers, batteries, etc. Water heating for government houses Procurement is through the Public procurement and disposal board registered companies at different categories based on experience and expertise Mining Industry Due to the Vastness of the country some mines are located in very remote areas without grid Power During prospecting the mining companies prefer to use solar power for their energy requirements Most mines are adopting energy management principles and using solar especially for hot water and area lighting. Absender Titel TT.MM.JJJJ Page 4

5 Botswana Solar Consumer Telecommunication companies Telecommunication is amongst Africa s fastest growing industries and this neccesitates construction of telecom masts is places with grid power Telecom equipment has been improving radically requiring upgrade of the power equipment and replacement of the old power sources ( Inverters, panels, batteries, etc) Tourism Industry One of the country s top earners in foreign revenue The most valuable tourism destinations are in remote areas with no grid power There is a growing local and international pressure to subscribe to sustainable tourism and this includes careful and thorough adherence to the Reduce,Reuse, Recycle principles Grid power has also become unrealiable and the tourism cannot afford not to provide hot water and clean linen. Absender Titel TT.MM.JJJJ Page 5

6 Botswana Solar Consumer Agriculture Industry Botswana is a major beef exporter and farmers have began to use solar water pumping systems to provide water for their cattle. Horticulture is also a growing industry necessitating water pumping as Botswana is a semi arid country. There is also a growing need for farm life to provide power for lighting,radio, cellphone charging and sometimes television. Military Some special operations require silent power and solar is able to deliver including for telecomunication solutions. Wild Life Wild life anti-poaching operations in game parks also require solar applications In some instances water for wild animals is also provided through solar water pumping due to the weather conditions of Botswana Absender Titel TT.MM.JJJJ Page 6

7 Botswana Solar Consumer Police The police often mount high road blocks to do random vehicle and driver inspections and they use generators for power source which is not cost effective. During power cuts (load shedding) traffic control becomes a challenge, hence there is a need for solar solutions. Private Clients Some people have no access to the grid and have appliances that require power such fridges, tv, etc. (including clients from Zimbabwe and Zambia) There has been a growing unreliability of power supply and homesteads are getting battery bank with inverter charger backup Business have also been addressing the power challenges with battery based backups. Absender Titel TT.MM.JJJJ Page 7

8 Challenges faced by Consumers in Botswana Although on overall solar PV prices have dropped the solar solutions are still prohibitive on the upfront investment cost There are no existing government rebates that can allow the customer to reduce the burden of the initial cost This could be in different forms including tax rebates, solar fund for easy repayment, etc. However farmers have government programs that assist financially in equipping boreholes There is no feed-in tariff to offset the cost of the equipment by selling power that is underutilised/excess production. The overall cost of grid power to the consumer although unreliable is subsidised, making the business case for solar negative. Absender Titel TT.MM.JJJJ Page 8

9 Challenges faced by Consumers in Botswana Customers awareness and understanding of solar solutions and products There is very little understanding of solar solutions and products by the end consumer resulting in wrong choice of solutions. Standards and Quality products/services There has been an influx of substandard products especially from Asia and have destroyed the faith of customers in solar. Botswana Bureau of standards only has voluntary solar standards which makes adherence to standards by supplier open to abuse. The solar industry association of Botswana is advocating for mandatory standards There are very few skilled installers resulting in customers paying for nonperforming systems. Absender Titel TT.MM.JJJJ Page 9

10 Challenges faced by Consumers in Botswana Shortage of Skilled artisans (cont.) Botswana s population is small yet spread across a vast area, hence presenting equipment support and maintenance challenge. Absender Titel TT.MM.JJJJ Page 10

11 Opportunities in the Solar Industry in Botswana Grid tied generation Due the generation deficit as a result of technical challenges in the recently commissioned 600MW. Growing demand due to a growing urbanisation Government focus on developing manufacturing industries for economic diversification from diamonds The grid network is well developed through out the best part of the country Distributed PV generation Due to drop in PV prices and growth in tariffs there is a potential upsurge in household and corporate PV installations Due to solar developments in the neighboring South Africa customers are beginning to have interests in solar solutions for their home use Absender Titel TT.MM.JJJJ Page 11

12 Opportunities in the Solar Industry in Botswana Distributed PV generation (cont.) Due to the vastness of the country, isolated PV-Diesel Hybrid solutions can provide power solution for homesteads, Mines and remote government offices/facilities. Training There is a huge skills void in solar especially the installers and solution designs There is also shortage of knowledgeable sales and marketing personnel who understand solar products and can assist customers effectively. Finance There is opportunities for innovative financing structures that can allow easier/flexible access to solar solutions Absender Titel TT.MM.JJJJ Page 12

13 Opportunities in the Solar Industry in Botswana The growing need for underground water There is a growth in the need for underground water pumping for both farming and human consumption Telecommunication power solutions Export to the SADC region There is an overall excessive power deficit in the region and this presents opportunities for developing generation capacity for export to the Southern African Power Pool (SAPP). Grid Management solutions There is an opportunity to provide grid management systems to manage the assimilation of PV to the grid Feasibility consultancy for the grid tied projects Absender Titel TT.MM.JJJJ Page 13

14 Important Contacts Ministry of Minerals, Energy and Water Resources Tel: Department of Energy Tel: Botswana Power Corporation Tel : Solar association of Botswana Tel: info@siabw.org Absender Titel TT.MM.JJJJ Page 14

15 My Contacts Tel: Absender Titel TT.MM.JJJJ Page 15

16 Thank you Absender Titel TT.MM.JJJJ Page 16