TOPIC OF THE WEEK
Entrepreneurs Bring Light to Communities!
Solar Power in the Developing World!
FARWA SIAL –LONDON 7 October 2011
The rise of energy prices in developing countries, coupled with weak energy infrastructures and the reliance on energy imports, has exacerbated poverty especially in relation to high food prices. Some of these countries have found renewable energy sources which are in abundance with virtually no running costs. Currently, solar energy appears to be the alternative in dealing with the developing world’s woes. The term Concentrating Solar Power (CSP) refers to several different technologies that use mirrors to focus, or concentrate, the sun’s rays to generate electricity. Many countries are now actively investing in on-grid and off-grid solar energy as a clean alternative to fossil fuels, for example India’s Jawaharlal Nehru National Solar Mission is currently in phase 1 and aims to commission 1000MW of grid-connected solar power projects by 2013, similarly Egypt’s first solar plant at Kuraymat, is expected to produce 120 MW with the help of German companies Ferrostaal and Flagsol, which provided the technology. Indeed small scale entrepreneurs are making their mark by bringing light to their communities. These initiatives are not only providing economic growth in capital scarce countries but are also enabling self-sufficiency to citizens who are taught how to make solar power installations from scratch. Read more.....
ENERGISING HAITI
Énergies Renouvelables, S.A. (ENERSA) manufactures solar streetlamps, mobile phone chargers and other solar-energy equipment using Photo Voltaic (PV) panels in Port-au-Prince. It was established by Jean-Ronel Noel and Alex Georges; electrical engineering graduates who decided to start their own PV panel company with an aim of not only providing Haiti with PV run energy but also providing jobs to locals. ENERSA trains each employee to model and design PV panels. Most of these young men belong to the shantytown of Cité Soleil and don’t even have a high school education. The company initially benefitted from guidance and support from Richard Komp of Skyheat Associates and despite the earthquake in 2010, which destroyed their office and equipment ENERSA was able to expand into a small formal business, providing young men technical training and fulltime jobs. ENERSA’s strength and resilience is visible in the solar powered street lamps in Port-au-Prince as Haiti still struggles to overcome the economic losses of last year’s earthquake. ENERSA recently partnered with KAYER, a Senegalese firm specialising in solar power installations to hold a workshop to teach Senegalese locals how to build PV panels. The project was sponsored by the French Non-Governmental Organisation, Solidarité Internationale pour le Développement et l’Investissement and the École Polytechnique Féminine. This transfer of South-South technology marks ENERSA's success in enabling grassroots development through local entrepreneurship.
THE BAREFOOT SOLAR ENGINEERS OF INDIA
The Barefoot College is also leading a quiet revolution, spreading solar energy to non-electrified rural villages in India by training villagers to become Barefoot Solar Engineers (BSE). The Barefoot College is a Non-Government Organisation (NGO) founded by Bunker Roy which provides basic services to rural communities including health care, education and access to clean water. These services are not imported from other parts of the country but are generated within the local communities through training and collaboration. The college started its solar engineer programme in 1989 and runs entirely on solar energy including photocopy machines and even computers. It holds rural electronic training workshops in villages with an emphasis on illiterate female middle-aged villagers. Barefoot college receives funding from a variety of sources ranging from the Government of India to international funding agencies and corporate and private organisations. Since 2009, more than 14,800 fixed solar units and 8,585 solar lanterns have been installed in more than 628 villages with the help of 461 Barefoot Solar Engineers. The scope of Barefoot College is not only limited to India and the model has now been replicated in 17 countries mainly in Africa.
SOLAR POWER DRAWBACKS
Solar power is still labour-intensive in the developing world due to a lack of suppliers and sources of information. Added to this is the lack of entrepreneurial and technical skills. The success of these initiatives lies in the training and the domestic manufacturing of solar power installations. However the technology can only become mainstream upon price normalisation so as to be a viable alternative to electricity from the grid. The fact that developing economies already have limited infrastructure favours Small Medium Enterprises (SME) investing in solar energy as they can provide viable grid independent PV business. Indeed investment in solar energy can be encouraged through government incentives and financial support from commercial banks. For example, loans for solar installations should be based on long term returns as there are no running costs for solar energy. Implementation of favourable regulatory frameworks, which include Feed-in-Tariffs (FiT) already in place in the developed world can incentivise new entrepreneurs in the developing world. The World Bank proposes a Renewable Portfolio Standard (RPS) scheme that combines regulatory and financial incentives such as sovereign guarantees for Power Purchase Agreements (PPA)s from independent power providers and concessional financing to accelerate solar energy projects. While complex financing issues have always been the primary constraints for businesses in developing countries initiatives like ENERSA and the Barefoot College have been able to overcome these by their local livelihood approach to business. Have your say……