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Microhydro Experiences in Africa and Beyond

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Conventional energy grid based subsidies can make tariffs artificially low ... Time frame, sustaining community interest. Most project developers for ... – PowerPoint PPT presentation

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Title: Microhydro Experiences in Africa and Beyond


1
Microhydro Experiences in Africa and Beyond
  • Terri Hathaway
  • International Rivers Network

2
About IRN
  • About Large Dams
  • Human Rights, Environmental Justice, and Social
    Development Goals
  • Advocate for Microhydro and other Renewables to
    Support Decentralized Rural Energy Needs

3
  • Micro-hydro systems have an important role to
    play in the economic development of developing
    countries with hydro resources especially in
    remote areas.
  • Coupled with the rising costs of
    conventional energy sources and the high costs of
    grid extensions to remote regions, renewable
    energy seems more viable and applicable. -
    AFREPREN

4
Project Sustainability
  • What is micro hydro?
  • Project Goals
  • Technology Demonstration Projects
  • Meeting Social Development Goals
  • Economic Viability
  • Ownership Private or Community

5
Project Sustainability
  • Financing Mechanisms
  • Capital Costs
  • Operating Costs and Maintenance
  • Expansion
  • Policy and Regulation
  • Institutionalization and Scaling up/ replication

6
Kenya Tungu-Kabiri Micro-hydro Power Project (18
kw)
  • Project Goals
  • household lighting, small enterprises, displace
    dirty energy use
  • Ownership Community created corporation,
    supported by NGO
  • Financing
  • Funded by UNDP and the Kenyan Ministry of Energy
  • Creation of a corporation of 150 200 people who
    bought shares
  • 3,495 / installed kW
  • Businesses pay a flat monthly rate for electricity

7
Kenya Tungu-Kabiri Micro-hydro Power Project
  • Challenges
  • lack of industry infrastructure
  • lack of local capacity to design and develop
    small hydropower schemes
  • under-utilization of electricity (low economic
    demand)
  • insufficient technical support, leading to
    frequent blackouts
  • Lack of appropriate financing mechanism to
    support maintenance or expansion
  • Strengths
  • Community based from beginning
  • Government positively involved throughout process
  • Needs assessment conducted at the village and
    household level prior to project construction

8
Ethiopia Church-based Micro Hydro for Milling
  • Project Goals
  • introduce and disseminate the micro-hydro
    technology in the country
  • enable people to access low cost milling services
  • to alleviate the burden of women
  • Ownership
  • Motivated by church, handed over to community
  • The Church wants to move towards schemes being
    privately funded by mill owners who would wish to
    run mills as a commercial exercise.
  • Financing
  • Funded by Church
  • 550 - 850 /kW

9
Ethiopia Church-based Micro Hydro for Milling
  • Challenges
  • 10 of 30 not functioning, often a question of
    ownership and responsibility to operate and
    maintain the systems.
  • Political problems
  • Competition from cheap imported diesel mills
  • Strengths
  • 20 of 30 are still operational
  • Local manufacturing of turbines

10
Small Hydro in Ghana
  • Inventory of small and micro hydro sites
  • Changing hydrology affecting site feasibility
  • Have a relatively high rate of grid connection,
    many sites are close to the grid, subsidized grid
    tariffs
  • UN Energy Demonstration Study
  • Recommends a pilot project and a re-assessment of
    potential sites (Likpe-Kukurantumi?)

11
Other African Countries
  • BURUNDI 27 micro hydro sites installed for a
    total of 32 MW
  • TANZANIA Over 15 micro hydro sites installed
    government policy to promote small hydro where
    national grid is far or to replace diesel
    generators
  • SOUTH AFRICA farming, privately owned

12
Micro Hydro in Nepal
  • Substantial small hydropower development
  • 900 microhydro schemes 1996,
  • over 80 of these were for grinding grain
  • Now over 25,000 operational small hydro units
  • Government support has led to private sector
    involvement and replication
  • sanctioned privately instituted small hydro
    projects under 100kW
  • eliminated licensing requirements
  • granted approval for charging unrestricted
    tariffs
  • 655 / kw

13
About Financing
  • High capital costs 2,000 3,000 / kw
  • Subsidies
  • Conventional energy grid based subsidies can
    make tariffs artificially low
  • Renewables and rural electrification should also
    receive subsidies
  • Using anchor customers

14
Participation Ownership
  • Development
  • Sweat equity building community buy-in
  • Time frame, sustaining community interest
  • Most project developers for community projects
    are NGOs, and must bear the major transaction
    costs
  • Operation
  • Using and keeping local resources creates
    additional benefits, ie jobs, keeps investment in
    capital costs in the area, keeps it sustainable.
  • Building technical support capacity for system
    maintenance
  • Proper financing mechanisms to support maintenance

15
Policy Regulation
  • Can either support or be a barrier
  • Appropriate regulation
  • Appropriate level of decision-making
  • Prioritizing Rural electrification what role
    for rural electrification agencies?
  • What are the risks when policy/regulation is
    unclear?
  • External Institutions UNIDO, UNDP, GEF, AfDB,
    Chinese-based IN-SHP
  • Does big agency involvement inflate costs or skew
    motivation?

16
Replication Scaling Up
  • Universal need for a needs assessment BUT, Local
    results a must
  • Building domestic capacity to manufacture is also
    important
  • Support of government policy
  • In China, mandated policy and promotion of local
    industry
  • In Kenya, government support for establishing
    standards and a code of best practice for small
    hydropower

17
Challenges
  • Lack of data for microhydro / community driven
    projects
  • River flows are changing due to deforestation,
    climate change
  • Project must have sustained motivation and
    appropriate mechanisms during operation
  • Balancing economic and social project goals

18
Resources
  • African Microhydro Knowledge Network
  • Microhydro eGroups
  • www.microhydropower.net
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