This session is part of the Clean Energy Regulators Initiative Webinar Programme. Theme 9 - Energy Access Module 3: Integrated Rural Electrification Not all energy supply solutions fit energy access needs, and supply is less than half of the equation. This session explains how market segmentation can target the right solutions to the right end users based on resources, geography, density, and demand. It encourages participants to assess how delivery of one energy service may facilitate delivery of complementary energy services for adjacent markets. The session also highlights the importance of cooperation in the planning stages and underlines the value of facilitating efficient and productive uses of electricity.

1. Integrated Rural
Electrification
Leonardo Energy Webinar
8 May 2015
Allison Archambault

2. 2EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
Objectives
• Discuss evolving models
(supply ≠ demand)
• Market segmentation:
bull's-eye or stair step
• Become and efficiency activist
• Identify accompanying
opportunities

3. 3EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
EarthSpark
International
We build
clean energy access
in Haiti.
R+D
Incubation
Social enterprises

4. ENÈJI PWÒP: CLEAN ENERGY RETAIL
4EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

5. 5EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
EKO PWÒP:
“SMART GRID” FROM SCRATCH

6. SPARKMETER: LOW COST, HIGH
FUNCTIONALITY SMART METERS
6EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

7. POWERINGAGRICULTURE
MICROGRID
EXPANSION
• 54  430
customers
• Diesel 
hybrid solar-
diesel
MILL
ELECTRIFICATION
• Tap microgrid
electricity to
improve
quality and
reduce costs
BREADFRUIT
PROCESSING
• Extend shelf
life from 3
days to 18
months
7EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

8. SUPPLY IS < HALF OF THE EQUATION
8EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

9. MILL ELECTRIFICATION
9EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

10. BREADFRUIT PROCESSING
10EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

11. THE PROBLEM
NO ELECTRICITY=
LOW PRODUCTIVITY
11EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

12. THE GOAL
AFFORDABLE, RELIABLE
ELECTRICITY=
UNLOCKED POTENTIAL
CHILDREN CAN STUDY
BUSINESSES STAY OPEN
ENABLES REFRIGERATION
BETTER HEALTH OUTCOMES
VALUE-ADD TO AGRICULTURE
12EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

13. VIRTUOUS CYCLE
Agricultural
businesses
strengthen
the grid.
The grid
unlocks
agricultural
value.
13EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

14. 14EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
Central grid
ENERGY ACCESS MARKET
SEGMENTATION BY LOCATION AND
CONSUMPTION
Grid extension + infill
Microgrids + captive
[Battery charging
+ nanogrids]
Stand-alone systems
(small and large)

15. 15EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
MARKET SEGMENTATION WITH MULTI-
TIER MATRIX MEASURING ACCESS TO
HOUSEHOLD ELECTRICITY
Source: ESMAP “A New Multi-Tier Approach to Measuring Energy Access”

16. THE “PERFECT” IS THE ENEMY
OF THE GOOD
Is central grid electricity an option for rural
electrification in Haiti?
16EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

17. 200 MW
11 MW
16 MW
8 MW 4 MW
5 MW
LOCATION AND
CAPACITY OF
CENTRAL GRIDS
IN HAITI
17EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

18. 18
STATE OF EDH OPERATIONS IN
HAITI
• 25% capacity factor from EDH assets
• ~$0.35/kWh tariff
• Very high losses, low cost recovery:
• “EDH only brings in revenue for barely 20% of the electricity it put
out. The other 80% is covered by state subsidy…” (1/22/2013) [1]
• Official EDH numbers are more generous: ~50% losses; ~18%
technical/32% non-technical (November, 2006) [2]
• Varying reliability in most central grids, from 6
hrs/day to 20-24 hrs/day
EARTHSPARK
INTERNATIONAL
WORLD BANK
OFF-GRIDELECTRICITY
5/6/2015
18EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

19. THE “BEST” SOLUTION
Are microgrids best for rural electrification?
• It depends
• Much can go wrong
• Multi-disciplinary planning and
community partnership are key
• Technical note: HOMER
• Avoid ‘dump and run development’
• What is the long-term plan?
19EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

20. PRIORITIZE ENERGY SERVICES NOT KWH
20EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

21. MULTI-DISCIPLINARY MARKET STUDY
21EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

22. MICROGRID COST STRUCTURE
• Household distribution is highly dense, so
marginal connection cost is small – very low
per-customer costs
• Partial recovery of per-customer fixed cost
through a fixed connection fee
• Not all revenue collected is through pay-as-
you-go.
• Larger customers make up ~30% of load
• Extremely reliable demand
• Some pay for electricity on monthly, post-pay basis.
• Some pay via PPA – long-term “bankable” contract for energy
22EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

23. BENEFITS OF PRE-PAY AND PAY-AS-
YOU-GO
• No cost to collect payments
• Perceived as more fair to customers who are
not always present
UNLOCKING THE BUSINESS MODEL
• Many components to success.
• Technology is essential – low-cost smart
metering system
23EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

24. 24EARTHSPARK
I N T E R N A T I O N A L
EFFICIENCY
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

25. 25EARTHSPARK
I N T E R N A T I O N A L
EFFICIENCY:
#wastelessdomore
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

26. 26EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
ACCOMPANIMENT
Value Chain Synergies

27. 27EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
ACCOMPANIMENT
Value Chain Synergies
Fuel switching
(transit + cooking)

28. VIRTUOUS CYCLE
Productive
businesses
strengthen
the grid.
The grid
unlocks
productive
use value.
28EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

29. 29EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
ACCOMPANIMENT
• Value Chain Synergies
• Fuel switching
(transit + cooking)
• Agriculture +
Conservation
• Feminist Electrification

30. 30EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
Conclusions
• Business models are evolving
(supply ≠ demand, smart meters, storage, finance)
• Market segmentation is both
bull's-eye and stair step
• Everyone needs to be an efficiency
activist
• Accompanying opportunities can
augment the bottom line and enhange
social benefits

31. THANK YOU
EarthSpark International
Allison Archambault
allison@earthsparkinternational.org

32. ENERGY POVERTY IS
EXPENSIVE
75% of households without electricity
access in Haiti
Households spend
• $10/mo. on kerosene & candles
• $4/mo. on cell phone charging
32EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

33. 33
STATE OF IPP OPERATIONS IN HAITI
• Despite high PPA rates, EDH is an unreliable off-taker:
• E-Power, backed by IFC, is newest IPP in Haiti. 30 MW HFO plant began
operations on January 13th, 2011. [1]
• “Delivery of energy interrupted for nearly 3 months because of lack of financial
resources to buy fuel needed to operate the [E-Power] plant, due to government
debt over 12 million representing 3 months in arrears.” (5/10/2013) [2]
• “…Electricity d’Haiti (EDH) can devote only 20% ($1 million) of its monthly
revenues to pay the suppliers. In addition, the public treasury provides a monthly
subsidy of $5 million, bringing the envelope to $6 million. However, the invoice of
the 3 providers is $12 million dollars monthly…due to the arrears, the E-power
company decided on June 19, 2013 to turn off its engines connected to the
network of Electricity d’Haiti.” (6/27/2013) [3]
• High cost of IPP generation: $0.15 - $0.16/kWh for
HFO; $0.22 - $0.26/kWh for LFO plants
EARTHSPARK
INTERNATIONAL
WORLD BANK
OFF-GRIDELECTRICITY
5/6/2015
33EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N

34. CHALLENGES FOR PAY-AS-
YOU-GO MICROGRIDS
Challenge Counterpoint
Heavily subsidized central grid tariffs are less
expensive
While subsidized, central grid tariffs in Haiti
are a relatively high $0.35/kWh
Un-electrified households do not spend
sufficient sums on energy services
Households spend an average of
$14/household/mo.
Cost structure: cash flow mismatch between
customer payments and debt service on
fixed costs
Let’s talk about this in more detail…
34EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N