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ENERGY SERVICES Providing Effective Rural Energy Services to the Poor
ENERGY AND AGRICULTURE Exploring the Energy Function of Agriculture Pages 4-5
HYDRO POWER New Water Turbine for Developing Countries Page 6
Welcome to issue 12 of the DFID Energy newsletter, which contains information on developments, activities and news in the Energy sector especially the Knowledge and Research (KaR) programme.
This newsletter, which is available free of charge, is aimed at those who are involved and/or interested in energy- related issues in the developing
world. To be added to the mailing list contact the editor at the address given on page 8, or register on the web at www.etsu.com/dfid-kar- energy/html/mailing_list.html
To ensure that this newsletter continues to reach the right people, please remember to inform the editor of changes to your address details, or if you no longer wish to remain on the mailing list.
Copies of the newsletter, plus summary details of ongoing and recently completed DFID Energy KaR projects can be accessed on the KaR Energy web site at www.etsu.com/dfid-kar-energy/
Alternatively there is a hot link from the main DFID web site at
www.dfid.gov.uk (through ÔWorking With UsÕ, then ÔResearchÕ and click under ÔCommunicating KnowledgeÕ).
We would like to continue to receive feedback from you, the reader, on the projects featured in this or a previous newsletter, to judge its value and impact. This might include how an article inspired you to do something, or how it complemented or challenged your own work. Please send your comments to the editor by phone, fax or e-mail at the address given on page
8. A selection of responses will feature in the next issue.
Front Cover: This miller was provided with a dynamo on the mill stone to light up the gloomy mill-house in India (Photo courtesy of IT Power Ltd)
Providing Effective Rural Energy Services
Provision of modern energy services is a key element in enhancing life in rural communities. Such services are currently
rarely available and, where they are, they are often unreliable, inefficient and expensive. High costs tend to exclude the poor and/or constrain service provision, and inneficiency can lead to localised environmental impacts.
The following two ongoing KaR projects, which are both looking at different aspects of providing effective rural energy services to the poor, are collaborating to share and benefit from each otherÕs experiences and knowledge.
The 3E Strategy: Energy
This South African web site provides information to help industry reduce energy costs and pollution. The Ô3E StrategyÕ
(Energy Efficiency Earnings) is an output from a collaborative project between experts in the UK, Netherlands and South Africa. The work was funded by the European Commission along with the governments of South Africa and the Netherlands.
The site has been created by the South African partner in the project, the Energy Research Institute at the University of Cape Town. As such it is a pioneering local resource in Africa. The site aims to improve awareness, understanding, skills, knowledge and the application of energy conservation in South African industry, although most of the information and measures described can also be applied usefully elsewhere.
A series of guides can be downloaded on how to save energy and money, covering: the 3E strategy; boilers and furnaces; compressed air systems; electricity use; insulation; refrigeration; and steam systems. Several case studies illustrate the strategyÕs success in South Africa.
The site also contains a useful database of manufacturers, technical specialists, consultants, and relevant web sites and books, in addition to details of forthcoming events and a link to the Southern Africa publication ÔEnergy Management NewsÕ. The 3E Strategy: Energy Efficiency
Earnings web site is located at:
Facilitating the Esta
Rural Energy Servic
PV mini-grid, Narendrapur, Sagar Islands, West Bengal
Poor rural communities rarely have access to modern energy services, except via the purchase of equipment.
This route tends to exclude the poor, as initial costs are too high for the user but too low to attract development funds. In addition, the markets are often too small to support the required physical and institutional infrastructure. The rural energy service company (RESCO) concept has the potential to deliver upliftment, but only if the establishment of RESCOs is simplified.
This project, being carried out by ETSU in partnership with PN Energy Services Ltd (South Africa) and the Tata Energy Research Institute
(India), is deriving a framework to help establish successful RESCOs. This is being achieved by producing a rational Ôdecision treeÕ approach to navigating through the processes of developing appropriate institutional frameworks. This should facilitate the development of sustainable and replicable commercial enterprises for the delivery of improved energy services.
This project is drawing on the increasing global experience of providing basic energy services in rural locations through the establishment of Ôfee for serviceÕ organisations such as RESCOs. It is using these insights to encourage new RESCOs to become established. The detailed methodology is based on the application of structured appraisal techniques to existing and planned RESCOs. The aim is to ascertain how they have been developed, and how they maximise the delivered benefit (to poor communities) via sustainable modern energy service provision, which is focused on meeting basic household and community needs (eg lighting, cooking) and enabling access to
income-generating activities, and powering community facilities (eg schools, health clinics). The RESCO concept is a relatively new one and, to date, each RESCO has been individually designed. This is a complex process as there are a large number of variables and elements to be accounted for in deriving an appropriate
2 May 2001
structure. For example, in designing a RESCO
the following need to be considered:
¥ How many households does the RESCO
¥ Does the community, government or a private company own the RESCO?
¥ What subsidies are available (if any) and how will they be paid?
Energy Supply and Demand
The poor efficiency of biomass used for cooking and heating, and the poor, inefficient and expensive provision of electricity causes rural institutions, such as hospitals and schools, to incur high costs and
leads to localised environmental impacts. This constrains service provision and costs parents, patients, communities and sponsors considerable sums of money.
This DFID-funded ESRI (Energy Services for Rural Institutions) project is addressing institutional energy supply and demand in rural hospitals and schools in Kenya, Uganda and South Africa. Its purpose is to deliver more reliable and cost-effective energy services to rural hospitals and schools, which will improve the standards of health and education in rural communities. The project is establishing energy service providers (ESPs) in each participating country. These ESPs are identifying a number of
¥ What is the impact of the prevailing institutional, regulatory and legal framework?
This project is building an understanding of the cause and effect relationships between these factors, and putting them together to analyse the impact of such relationships. It is doing this by talking with stakeholders in existing and planned RESCOs, and identifying how these factors are viewed. The subsequent analysis is designed to identify which are the key variables
(and why) and to then link these to structures and applicable models. Overall, such understanding should lead to the emergence of a sound basis for best practice in RESCO design. A fuller written description of the project can be obtained from the Project Co-ordinator (contact details below). Over the course of the work a series of newsletters and more detailed communications will be produced. To receive them, send your contact details, plus the nature of your interest, to the Project Co-ordinator.
For further information contact:
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