Anchor customer

The ABC-Modell
Anchor customers as
core clients for mini-grids
in emerging economies
Kathinka Kurz, GIZ
Berlin, 19. March 2014
The A(nchor) – B(usiness) – C(ommunity) Model
Anchor + Business +
Community
> Households have access
to affordable energy
Anchor + Business
> Local businesses use
power to increase
operating hours
Anchor
> large, reliable
credit-worthy
customer
Households: low
electricity demand, mostly
for lighting, mobile-phone
charging and household
appliances
Businesses: higher
electricity demand for
productive use
Anchor customer:
financially sound,
guarantees electricity
purchase, secures
commercial operation
Potential Anchor Client - Telecommunication sector
Case: Telco-Sector in Africa
• 5 Mio. mobile towers worldwide consume 1% of the world‘s electricity
• Many in off-grid regions or unreliable grids
• Over 150.000 mobile towers in Africa
• Annual growth rate is assumed at 19%
• Rising competition leads to consolidations and cost pressure
Source: Saviva Research, 2013
20/03/2014
Potential Anchor Client - Mining companies
Case: Mining Sector in Kenya
•
The mining sector contributes with about 30% to the national energy
demand.
•
There is a great uncovered demand for energy (about 100 MW)
currently covered by private diesel generators.
•
Many large mining facilities (between 6-30 MW) are not yet connected
to the grid and located up to 300km away from the grid.
•
Partly, solar systems are already used to reduce fuel costs.
•
Low gold and high fuel prices force many companies to lower their
costs and change over to other technologies.
•
Mining worker and their families live around the site
Source: AHK Zielmarktanalyse
Kenia 2013
20/03/2014
Potential Anchor Client - Agro-processing companies
Case: Agro-Processing in Tanzania
•
About 80% of the population works in the agro sector.
•
Most of the facilities are far away from the grid and very lucrative.
•
Large agro-companies (e.g. Mohammed Enterprise Tanzania Ltd.) have
a broad infrastructure with worker-camps, connection to roads, schools
and health stations which builds a great chance for PV electrification.
Source: AHK Zielmarktanalyse
Tansania 2013
20/03/2014
Potential Anchor Client - Tourism industry
Case: Tourism in Kenya and Tanzania
•
Approximately 150 off-grid lodge sites in Kenya
•
Most of the lodges and most tent-camps in Tanzania are not connected
to the grid
•
Most energy is currently supplied by diesel generators (50-150kW)
•
Even grid-connected hotels and lodges would like to „go green“ and
start using solar energy as their main supply
Source: AHK Zielmarktanalyse
Kenia /Tansania 2013
20/03/2014
Reference-Project
East-Africa
Reference Project: Mobile tower for rural electrification
Before…..
….After
Mobile towers are run by diesel
•
Rural communities have no access to
electricity, use paraffin and kerosene
•
•
No economic development in rural areas
•
•
High environmental burden
•
•
•
- Mobilfunkmasten werden mit Diesel betrieben
- Ländliche Siedlungen haben keinen Zugang zu Elektrizität
20/03/2014
Solar substitutes diesel, energy costs sink
significantly
- Projektentwickler installiert Solar und agiert als Netzbetreiber
für private Haushalte und Mobilfunkunternehmen
- Solarstrom ersetzt Diesel, Treibstoffkosten sinken signifikant
- Mobilfunkmast als Ankerpunkt für ländliche Elektrifizierung
- Ländliche Bevölkerung hat Zugang zu Strom
- Entstehung von kleinen Unternehmen
- Steigerung der Produktivität und Rentabilität
- Training in Betrieb und Wartung
- Beschäftigungsmöglichkeiten werden vor Ort geschaffen
Establishment of small enterprises
Creation of job opportunities in the villages
Training in operation and maintenance
Reference Project: Uganda – Telco as Anchor
DC line
AC line
Battery
bank
Inverter
Diesel
generator
Solar PV
array
 Project developer installs solar
container and will act as energy
services provider for both MNO
and private households
 Setting-up a reliable local service
& maintenance structure
Reference Project: Uganda – Pilot site
Pilot site:
Nakawomeka
(mobile tower)
Kabunyata village,
Luwero District
20/03/2014
Installation of solar genset for Kabunyata village
and mobile tower
Inverter and
battery bank
Pilot site at mobile tower “Nakasongola”
20/03/2014
Energy container and
installation
Productive Use
High benefits of the model for all project partners
Operater
• Open up of new
market segments
• Risk mitigation
through secure
anchor load
consumption
• High profit potential
(up-scaling in the
region)
Customers
Anchor customer
• Energy cost savings of
> 40%
• Social responsibility
SMEs/Haushaltskunde
• Access to energy
• Cost savings
• Productive use
GIZ
• Contribution to reach
project goals: access
to electricity for rural
populations
• Establishment as a
competent partner for
the private sector
Development impact in Uganda:
- Improvement of production capacities of rural entreprises
- Capacity building and employment opportunities for 50-70 solar technicians / year
- Reduction of CO2 emissions through switching from diesel to solar PV
Questions?
Back-up slides
‘A’nchor customers
Anchor customers require a continuous delivery of service, which is also
predictable in load and availability. They are bound to contracts and they are
bankable.
•
Potential anchor customers
 Telecommunication towers
 Mining companies
 Agro-processing industry
 Tourism industry
 …
20/03/2014
Potential Anchor Client - Telecommunication sector
20/03/2014
BUWANUKA
VILLAGE
Airtel anchor point
Main private use
1.2km
Main productive use
0.4km
Main institutional use
1.2 km to
boundary
Kabunyata/
Buwanuka
village
Airtel Mobile Tower
1 km
KIISO
VILLAGE
1.5 km to boundary
Kabunyata/Kiiso
village
KABUNYATA VILLAGE
40 Households
10 SMEs
2 Institutions
60 Households
9 Households
Kyangabakama Primary School
0.8km
0.2km
0.5km
1 km
Farm House with Mill
1.3km
Kabunyata Trading Center
20 Households
3.3 km to boundary
Kabunyata/Matembe village
15 households
MATEMBE VILLAGE
20/03/2014
Structure of Kabunyata Village, Luwero District 2012
Tariff structure
1. Tariff village
Load Limits
Price per kwh in UGX
Price per kwh in UGX (including 15%
VAT)
Price per kWh in USD (incl. VAT)
Connection Fee village *
one time fee in UGX
One time fee in USD
households
shop/restaurants
SMEs
Bronce ("life line tariff")
<50 Watt
Silver
<1000 Watt
Gold
>1000 Watt
678
1,470
1,560
780
0,31
1690
0,67
1794
0,71
Households SME
204,000
81,2
* According to UMEME standards
20/03/2014
Project introduction for endorsement
Institiutions
340,000
135,3
340,000
135,3
Monthly expenses for various consumers
3500 UGX / month
(1,40 USD / month)
4 hours
every day
30
charges
4 hours
every day
Monthly expenditures on energy:
10.000…20.000 UGX
11500 UGX
/ month
4 hours
every day
20/03/2014
30
charges
Project introduction for endorsement
2 hours
every day