The Marketing and Commercial Approach to Disseminating Improved Stoves in Cambodia

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The Marketing and Commercial Approach to
Disseminating Improved Stoves in Cambodia
Minh Cuong LEQUAN, GERES Better Air Quality 2006,
Dec. 13-15th, Jogjakarta
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1976-2006 30 years Jubilee

• In Cambodia since 1994
• 30 staffs
• Biomass energy efficiency, sustainable supply,
  planning, policy
  
• Biofuel (jatropha curcas)

• French NGO created in 1976
• 150 collaborators
• Energy Environment and Poverty
• South East Asia, Himalayas,
• West Africa, Maghreb and France

Main partners in Cambodia
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Cambodia Fuelwood Saving Project 1997 - 2007
To improve the livelihoods of Cambodians with
regard to energy and sustainable development

• Broad dissemination of ICS and wood energy saving
  devices to critical and dense areas
  
• RD on ICS and wood energy saving
• Set-up institutions to
• promote the wood energy issue,
• exchange technology with other countries and
• support the government of Cambodia towards a
  national wood energy policy

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Coverage Area 10 provinces beyond plan
Extension
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Overwhelming success
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Fuel wood the main source of energy
Source Cambodia Socio-Economic Survey 1999, NIS,
MOP
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Traditional cook stoves already commercialized
Siam stove
(ang) Lao Stove
(ang) Lao Kg. Chhnang
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Improved cook stoves easy to adopt
New Lao Stove
(ang) Lao Stove
(ang) Lao Kg. Chhnang
Neang Kongrey Stove
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Breaking the energy ladder
1) Charcoal price in Battambang and Koh Kong
2) 14.2 kg of LPG costs US 9
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The commercial channels
Based on existing sector No subsidy
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Commercial interventions
Technical training Technical support Quality Con
trol
Micro credit
Networking meetings Management training Initial
stocks assured of purchase
Ad-hoc troubleshooting
Promotional offers sell 10 units get a
promotional T-shirt free No cost consignments in
shops Free special racks for aisle end display M
atchmaking meetings
Presentation in fairs, cooking demos in markets,
try-and-buy operations TV ads (popular soap opera
s), billboards on main roads, T-shirts, banners
Radio and TV coverage (national news, educational
shows) Sponsoring of football teams, boat racers,
cycle racers
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Economic Benefit (1/2) Supply side
178.800 units sold from May 2003 until September
2006,
The producers got a net profit of US 0.75/unit
totally US 134,100
or around US 300/month/producer
Middlemen got a net profit of US 0.5/unit
totally US 89,400
Retailers got a net profit of US 0.5/unit
totally US 89,400
Then the users
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Economic Benefit (2/2) User side
Average CHARCOAL consumption 2.118 kg/family/d
Real saving with NLS 21.76 Price of charcoal
500 Riels/kg or 0.12 US/kg
... and for the environment
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Challenges for long term sustainability

• Train and regulate
• Vocational raining centre
• Training of MIME staff, sub-decree on ICS
  standard
  
• ICOPRODAC and labeling
• ISO QMS/EMS
• Quality Control System and
• incentives from Carbon Finance
• EE and RE
• energy plantations
• charcoal process improvements
• Expand and transform
• Export to push back market saturation
• RD (post-combustion stoves)

• Copycats
• Threat to quality
• Price wars
• But can help solve chronic under-supply
• Quality
• - Need to be rewarded and maintained in the long
  term
  
• Fuel availability
• charcoal prices may soar, making LPG more
  competitive
  
• Market saturation
• - expected in 4-5 years

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Thank you for your attention
to know more www.geres.eu or www.cfsp.org.kh
to compensate your CO2 emissions www.co2solidai
re.org