productive uses of energy from energy services...

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E. N. Sawe - TaTEDO, [email protected] 1 PRODUCTIVE USES OF ENERGY FROM ENERGY SERVICES PLATFORMS. The case of Jatropha oil/diesel powered Energy Services Platforms (ESPs). TaTEDO Pilot Project Experience AFRICAN ELECTRIFICATION INITIATIVE WORKSHOP - MAPUTO JUNE 9 TH TO 12 TH 2009

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E. N. Sawe - TaTEDO,

[email protected]

1

PRODUCTIVE USES OF ENERGY FROM ENERGY SERVICES PLATFORMS.

The case of Jatropha oil/diesel powered Energy Services Platforms (ESPs).

TaTEDO Pilot Project Experience

AFRICAN ELECTRIFICATION INITIATIVE

WORKSHOP - MAPUTO

JUNE 9TH TO 12TH 2009

E. N. Sawe - TaTEDO,

[email protected]

2

PRESENTATION OUTLINE.

1.0 Introduction.

1.1 Tanzania – Country Context.

1.2 Energy and Productive Uses.

3.0 ESPs Pilot Project (ESPs PP)

3.1 Project Description and activities.

3.2 Energy Services Platform (ESP) Basics.

3.3 Project results and Impacts.

3.4 Lessons learnt and challenges

3.5 Conclusions and Recommendations.

E. N. Sawe - TaTEDO,

[email protected]

3

INTRODUCTION.

Tanzania –Country Context.

Some selected Indicators.• Area: 945,749Km2.

• About 70% of estimated 40millions Tanzanian populationlive in rural areas.

• Installed electricity capacity,about 1000MW.

• Electricity consumption percapita, (Kwh):100

• Woody biomass consumptionper capita 1m3.

• Overall energy consumption per capita (Kgoe) 700.• Electrification levels at national 12%, urban 40% and

rural 2.5%.• About than 75% of the energy for agriculture is

derived from Human energy.• The country has significant energy resources in terms

of biomass, coal, natural gas, hydropower, solar, windetc.

E. N. Sawe - TaTEDO,

[email protected]

4

INTRODUCTION Cont………..

Government Policy on Rural Energy.

• Under the National Strategy for Growth and PovertyReduction, the Government of Tanzania priority is toimprove the current low social and economic indicatorsin line with the achievement of the MDGs. One of thekey strategies is to improve rural population access tomodern energy services.

• The Tanzania Rural Energy Agency (REA) isresponsible for creating and providing enablingenvironment and resources for different actors toundertake rural energy projects and business.

• Several initiatives( grid extension, stand alone andothers) to improve rural energy situation have beenundertaken with notable but limited success.

• Different actors are involved in addressing the ruralenergy problems in Tanzania, TaTEDO is one of the keyactors involved in the stand alone electrification andbiofuels development

E. N. Sawe - TaTEDO,

[email protected]

5

ENERGY AND PRODUCTIVE USES.

• Definition –GEF/FAO

“In the context of providing modern energy services inrural areas, a productive use of energy is one thatinvolves the application of energy derived mainlyfrom renewable resources to create goods and /orservices either directly or indirectly for productionof income or value.” In this regard;

- Use of energy to increase income is aproductive use.

-Use of energy to improve education/healthservices is a productive use also.

• TaTEDO initiatives include among others,productive uses of sustainable energy for incomegeneration and social services improvement.

E. N. Sawe - TaTEDO,

[email protected]

6

SELECTED TaTEDO SUSTAINABLE ENERGY

TECHNOLOGIES FOR PRODUCTIVE USES.

E. N. Sawe - TaTEDO,

[email protected]

7

THE ESPs PILOT PROJECT (ESPs PP)

Objectives of the ESPs PP implemented during 2006 to 2007were:

• To install three ESPs and associated machineries for oil seedextraction, grain milling, de-husking, electrification andbattery charging.

• To bring knowledge and capacity to develop and implementESPs projects in Tanzania.

• To develop capacity among beneficiaries on the ESPs,operation, maintenance and management.

• To demonstrate to policy makers, investors and donors howinnovative solutions can provide modern energy services forproductive uses and improve rural people’s livelihoods.

Funded jointly by the ESMAP and ETC of the Netherlands.

E. N. Sawe - TaTEDO,

[email protected]

8

MAJOR ESPs PP ACTIVITIES.

• ESPs systems design, planning and capacity building.

• Communities mobilization for participation, demand, energycosts, willingness and ability to pay assessment, local actorsand capacity assessment leading to project development planspreparation.

• Selection of entrepreneurs/cooperative and operators of theESPs

• Capacity building of entrepreneurs for management, operationand maintenance of ESPs, tariff setting, bill collections etc.

• Formation of village energy team (VET) – for ESPs servicesregulations supervision, tariff setting, bill collection etc.

• Business plan preparation, and agreements with different actors.

• Installation and commissioning of the ESPs components, dieselengine, generators, oil expeller, filter, minigrid.

• Support farmers to grow Jatropha for enhancing supply ofJatropha seeds and oil to the ESPs.

• Participatory close monitoring, supporting entrepreneur,continuous learning, adaptation to ensure sustainability of ESPservices.

E. N. Sawe - TaTEDO,

[email protected]

9

BASICS OF ESPs.

• A lister Engine coupled to alternator, grain mill, oil seed press, dehusking machines and battery charging facility, water pump, etc.

• All in one frame.

• Allows using combination of machines.

• Lister engines are simple, have been

used for a long time in Tanzania and are

familiar to local people.

• Can interchangeably use (SVO) Vegoil, and diesel.

• Installation cost, vary between, Tsh. 5m to Tsh.15m depending on the module components to be installed.

ESP Technology was transferred from Mali through MFC –some adaptation carried out by TaTEDO.

E. N. Sawe - TaTEDO,

[email protected]

10

JATROPHA ESP PRODUCTIVE USES.

FertilizerOil Cake

Jatropha Plant

ESP

Jatropha Oil

Biodiesel

Soap

Diesel engines

MillElectricity/ motive

Jobs

Biogas

Environment

conservationFirewood

E. N. Sawe - TaTEDO,

[email protected]

11

LOCATION OF TaTEDO PROJECTS IN

TANZANIA.

E. N. Sawe - TaTEDO,

[email protected]

12

ESPs PP, SITES FEATURES.

SITES Engaruka Leguruki TaTEDO

Centre *

Number of households 600 700 8 offices

Population 3000 3500 10 staff

Location from grid electricity 60km 10km

Major community Maasai Meru Staff

Jatropha growing status. 15tones/year 4tones/year 100kg/year

Economics – Jatropha price. 150-

250Tsh/kg

150-

200Tsh/kg

Pressing cost. 70Tsh/kg 70Tsh/kg.

Electricity unit cost – Diesel 1000Tsh/kwh 1000sh/kwh

Electricity unit cost –

Jatropha oil

300-

500Tsh/kwh.

Major occupation Agroforestry/

pastoralist

Agroforestry

zero grazing

Sustainable

energy

activities.

For Demonstration, testing and training facility.

Exchange rate: 1USD = Tsh. 1,300/=

E. N. Sawe - TaTEDO,

[email protected]

13

ESPs PP, SELECTED TECHNICAL DETAILS.

Particulars Technical Information

Sites Engaruka Leguruki TaTEDO Centre

Engine Size 10HP 16HP 10HP

Alternator 7.5KVA 12KVA 7.5KVA

Oil Press 70-100kg/hr 70-100kg/hr 70-100kg/hr

Maize mill 500kg/hr 725kg/hr 300kg/hr

De husking - 600kg/hr -

Charge/milling

dehusking

25Tsh/kg 25Tsh/Kg

Battery charger 80AMP

6batteries/hr

80AMP

6-battries/hr

-

Hours of electricity

supply

5hrs 4hrs Standby use only

Households

connected

10 25 8 Offices

Poles 17 50 4

Business 13 17 13

Etc.

E. N. Sawe - TaTEDO,

[email protected]

14

.Direct Beneficiaries

• Electricity connections.

– 92 individuals access.

– 500 people benefiting I

• Other services

– Grain milling

– Dehusking, street lights.

– About 5000 people.

• In addition, one Institutional improved firewood stove and baking ovens.

• 100 households with improved stoves.

Engaruka Leguruki TaTEDO

Centre

Household

s

10 25 8

Business/o

ffice

13 17 10

Battery

charging

15 12

Total 38 54

Capacity 50 80

ESPs PP, ACHIEVEMENTS – RESULTS.

E. N. Sawe - TaTEDO,

[email protected]

15

ESPs PP, ACHIEVEMENTS-IMPACTS.• High level support on biofuels electrification

– Inauguration of ESP at Engaruka village was by the thenPrime Minister. Edward Lowassa.

– Presence of the member of parliament at Legurukiduring the planning of the project implementation.

• Government policy support.

– District Commissioners, District Executive Directors,ward Leaders support the projects and have been veryhelpful during planning, implementation andmanagement of ESPs.

– Local authorities are aware and educated on theimportance and need to promote Jatropha growing forenergy supply and poverty reduction. (Demonstrationduring parliament session in Dodoma).

The experience is being scaled up, replicated andmainstreamed. ESPs and biofuels development in 11districts in more than 100 villages in the next five years.Thanks to the EU/Energy facility and the HIVOssupport.

E. N. Sawe - TaTEDO,

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16

• Demonstration

– ESPs powered by SVO/ Vegoil is a promising

option for rural electrification and motive

power provision.

– Created increased demand for electricity,

more than 100 potential users are waiting to

be connected at a cost.

– ESP concept has been appreciated by some

entrepreneurs who are requesting for ESP

installation as privately owned and managed

business.

ESPs PP, ACHIEVEMENTS-IMPACTS cont………..

E. N. Sawe - TaTEDO,

[email protected]

17

• TaTEDO and several local partners now have expertise in ESPssystems design and development.

– Capacity has been developed.

• Among TaTEDO staff.

• Partners, technicians, entrepreneurs, communities.

– Methodologies and tools developed.

• Manuals, training and hands on documents and bookprepared.

• Contractual arrangements and agreements with severalstakeholders prepared.

– Interest from other organizations on the region ESPs.

• Training for Konserve Consult and Vedco (34 farmers)in Uganda.

• Requests for training from Kenya, NCA, Zambia(CEEEZ).

• Study tours, a number of visits to the project sites bydifferent visitors from inside and outside the country.

• TaTEDO personnel visited Brazil, India and Mali forsharing experiences and learning.

• Student research projects, providing information.

ESPs PP, ACHIEVEMENTS-IMPACTS cont…..

E. N. Sawe - TaTEDO,

[email protected]

18

• Improved business performance.

– Better lighting – reduced smoke.

– Extended hours of work and business till 23hrs.

• Introduction of new business with increased village security.

– Video shows.

– Barber and salon shops.

– Mobile phone charging.

– Sewing business.

• Increased market for Jatropha seeds,

value

addition at the village, seed cake remain

as bio fertilizer at the village.

• Improved livelihoods.

– Members of families are able to read and study during thenight.

– Families earning more from business using electricity.

– Increased earning from milling, dehusking and batterycharging.

– Reduced women distances and time to milling machines.

– Gained time especially women for productive activities.

ESPs PP, ACHIEVEMENTS-IMPACTS cont………..

E. N. Sawe - TaTEDO,

[email protected]

19

ESPs DEVELOPMENT CHALLENGES.

• Still limited and seasonal supply of Jatropha seeds.– Limited production, Jatropha is grown traditionally for

fencing by small farmers using wild and low yield jatrophavarieties.

– Competition from other buyers in the village.

• High initial costs of ESPs equipment.– Some equipment are imported.

– Inflation and taxes.

• Low management capacity– ESP Management is entrusted to local

entrepreneurs/cooperative and authorities whosecompetency is still limited.

– Ownership could be by NGO, entrepreneur, villagers,cooperatives, CBOs or jointly, depends on who finally pay.

– VET regulations for services and payment enforcement islimited.

E. N. Sawe - TaTEDO,

[email protected]

20

• High energy prices.

– High fuel cost when diesel is used.

– Sometimes limited access to spare parts.

– Investment repayments would take

longer duration.

– Low access to credits/subsidy for ESPs,

related business development.

ESPs, DEVELOPMENT CHALLENGES CONT…

E. N. Sawe - TaTEDO,

[email protected]

21

ESPs PP, LESSONS LEARNT.

• Adequate and continuous supply of Jatropha seeds is one of thekey conditions for the viability of ESPs rural electrification andmotive power provision. Also for lowering user prices and,improving local economy and livelihoods.

• Traditionally/wild grown Jatropha

varieties are not predictable in terms

of yield, better variety is needed.

• Need to connect optimal number of

customers, other needed modules i.e.

Grain milling, oil press, battery

charging and water pumping during the first days of installation.

• Need for adequate training (operation, maintenance andmanagement)

– Sound management model is critical for the success andsustainability of ESPs services..

– Different actors i.e.. Owners, entrepreneurs, VETs and usersneed to honor their roles and responsibilities as peragreements between actors.

E. N. Sawe - TaTEDO,

[email protected]

22

RECOMMENDATIONS AND CONCLUSIONS

FROM ESPs PP.

• Need to provide adequate extension services, financial,inputs and market support for farmers to grow Jatropha formeeting local energy needs and to form strong associations.

• Establish market networks for processing and fair marketingof the Jatropha seeds in and outside the village.

• Strong involvement of local authorities for support inexpertise, enforcement of regulations and laws.

• Support local entrepreneurs/villagers to access financing forJatropha growing, ESPs and biodiesel projects.

– Fund, long term soft loans

– Government to introduce appropriate incentives, initialcapital subsidy, tax exemptions for ESPs.

– High hopes on REA and Rural energy fund; these arerecent promising government initiatives.

E. N. Sawe - TaTEDO,

[email protected]

23

• Need to standardize designs, procedures andcode of practices initially for sustainablequality services..

• Develop those ESPs enterprises at sites thatwould demonstrate social, technical andfinancial viability.

• Biofuels for transport and export is receiving alot of attention. However, biofuels offertremendous potential for improving access tomodern energy services (electricity, fuels andmotive power) in rural areas and contribute topoverty reduction and improved livelihoods.

RECOMMENDATIONS AND

CONCLUSIONS FROM ESPs PP.

E. N. Sawe - TaTEDO,

[email protected]

24

• The ESP PP, has offered lessons that can serveas a model for scaling up, replication andmainstreaming rural electrification and motivepower provision through Jatropha oil poweredESPs for villages in Tanzania.

• Strategy of the Government and relatedstakeholders should be to achieve for each un-electrified village found viable, at least oneESP, and for each district one biodiesel plant tomeet local energy needs followed by exportmarkets.

RECOMMENDATIONS AND

CONCLUSIONS FROM ESP PP.

E. N. Sawe - TaTEDO,

[email protected]

25

ABOUT TaTEDO

•Is a sustainable modern energy development national NGO based in Dar es Salaam withenergy activities in 9 regions and in more than 100 villages in Tanzania.

•Vision: Poverty free and self reliant communities in Tanzania accessing sustainablemodern energy services.

•Mission: To Advance popular access to sustainable modern energy technologies inmarginalized communities in Tanzania, through technological adaptations, communitymobilization, capacity building and advocacy for increased access to sustainable energyservices, poverty reduction, environmental conservation and self reliance.

•Has diverse partnership base locally and internationally with GOs, LGAs, NGOs, PrivateSector, Donors, and communities.

•Has field experience of more than 15 years on sustainable energy activities - studies,planning, implementation, enterprises support, monitoring and evaluation. Hasinterdisciplinary staff of 50 professionals.

Thanks for your attention!.

For further contact

(TaTEDO)

P. O Box 32794 Dar es Salaam.

E-mail: [email protected]

Website: www.tatedo.org