MICRO POWER ECONOMY. Dakar, Senegal, November 14-16, 2011 THE BUSINESS MODEL FOR RURAL ELECTRIFICATION
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1 1/13 Dakar, THE BUSINESS MODEL FOR RURAL ELECTRIFICATION MANAGING DIRECTOR INENSUS WEST AFRICA S.A.R.L. Dakar, Senegal, November 14-16, 2011
2 2/13 Dakar, AGENDA 01 The Challenges for Rural Electrification 02 The Business Model 03 The Main Features 04 The Summary 05 The Implementation
3 3/13 Dakar, THE CHALLENGES FOR RURAL ELECTRIFICATION Challenges/Problems _ Fraud during electricity purchase and usage _ Customers willingness to pay _ Conflicts with customers/vandalism _ Lacking skills for operation _ No incentives for efficient use and productive activities _ System overload _ No extension of power system Possible causes Lacking coordination of stakeholders aims and motives/crm Inadequate tariffication and billing model Single-operator-models Cooperative-models Flatrates tariffs and load limiters No demand side management Lack of financing, lack of technical options
4 4/13 Dakar, THE BUSINESS MODEL: _ The risk management tool for sustainable development and profitable investment _ Need for regulation to protect consumers while ensuring that the company remains viable and has an incentive to operate efficiently
5 5/13 Dakar, THE MAIN FEATURES OF _ Constellation of stakeholders Fostering economic development through concerted aims and actions _ Tariffication and billing model Electricity blocks for reliable planning of power generation and consumption _ Micro Utility Solution Technical device to stabilize the grid and facilitate prepayment metering
6 6/13 Dakar, THE CONSTELLATION OF STAKEHOLDERS Private Funding Regulator/Rural Electrification Authority Public Funding Financing for power station Power-Station- Operator Contract Mini-Grid- Operator Financing for mini-grid Private Company Rural Community Micro-Finance Institution Micro Credits for income generating activities
7 7/13 Dakar, THE TARIFFICATION AND BILLING MODEL Electricity block: max. power 50 W; daily usage up to 4 hours Power Extra Power (kw) Extra Energy (kwh) combined electricity blocks Time
8 8/13 Dakar, THE TARIFFICATION AND BILLING MODEL Σ $ kwh Electr. user 1 Electr. user 2 Electricity blocks ordered in advance for 6 months = Electr. user 3 Electr. user 4 Electr. user 5 To be provided by power station operator New blocks _ Number of electricity blocks ordered can be increased (or decreased) every six months _ Electricity blocks can be traded between customers
9 9/13 Dakar, THE MICRO UTILITY SOLUTION The features: _ Prepayment system: Customers use chip cards to upload prepaid electricity credit _ Power and energy limitation: Planning reliability _ Demand side management: Automatic disconnection of single users at system overload _ Safety: Combining 3 user connections to one Micro Power Meter mounted in public _ Monitoring: Display for balance retrieval
10 10/13 Dakar, THE SUMMARY Efficient and productive use of electricity Power system extension other approaches No incentives with flatrates and load limiters Resulting in increase of tariffs (or requires additional subsidies) Micro Power Economy Tariff strucure facilitates economic development Possible thanks to financing structure and modular system design System overload Leads to system breakdown Demand side management guarantees reliable system operation Fraud/vandalism High risk Very low risk thanks to constellation of stakeholders and Micro Utility Solution
11 11/13 Dakar, THE IMPLEMENTATION OF _ Pilot project (village of Sine Moussa Aboud, 900 people) in cooperation with ASER and GIZ GmbH in Senegal in 2010 _ Installation of hybrid power system: 5 kw wind turbine, 5 kwp PV system, 10 kw diesel generator, 15 kw battery inverters, 120 kwh battery bank _ Installation of 50 hybrid power systems in Senegal by 2013 (for 50,000 rural citizens)
12 12/13 Dakar, THE MicroPowerEconomy means development options for rural citizens and fair returns for investors! IKU innovation price technology transfer SEED Award 2010 National Energy Globe Award 2011 for Senegal
13 13/13 Dakar, CONTACT INENSUS GmbH Am Stollen Goslar Germany Tel DE: Tel SE: INENSUS West Africa S.A.R.L. 10, Avenue Faidherbe, B.P. 397 Dakar Senegal
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