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Date post: 15-Dec-2014
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Energy Ladder
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  • 1. Analysis Study A growing number of initiatives are promotingbottom-up ways to deliver energy to the developing/Underdeveloped country

2. Keywords 3. Technology Solar Poverty Investment Energy 4. What does the topic mean? Background Study 5. Countries The development of a country is measured by HDI, a compound indicator that consist of gross domestic product, life expectancy, the rate of literacy, and many other statistics. Developed Countries Countries with high level of HDI like The United States, Canada, Japan, et cetera are classified as developed countries. Developing Countries Countries which have not achieved a significant degree of industrialization compared to their population, and in most cases these countries have medium to low standards of living. Underdeveloped Countries Countries which lack of access to job opportunities, health care, drinkable water, food, education and housing 6. Energy Poverty Energy poverty refers to situation of large number of people in developing countries whose well being is negatively affected by: Very low consumption of energy Use of dirty or polluting fuels Excessive time spent collecting fuel to meet basic needs. (Source: Wikipedia) 7. Major Energy sources Rural areas are predominant in developing country Rural areas in these countries do not have modern infrastructure They have heavily relied on biomass such as: Fuel wood Charcoal Crop Residual Because of: Lack of modern energy infrastructure such as Power plants, transmission lines, underground pipe lines(natural gas), petroleum(High end technology and Higher cost). According to International Energy Agency, Use of traditional biomass will decrease in many countries, but is likely to increase in south east Asia, and Subsaharan Africa alongside population growth. 8. Energy Ladder An energy ladder shows the improvement ofenergy use corresponding to an increase in the household income As income increases, the energy types used by households would be cleaner and more efficient, but more expensive as moving from traditional biomasses to electricity. Households at lower levels of income and development tend to be at the bottom of the energy ladder, using fuel that is cheap and locally available but not very clean nor efficient 9. What is the real world problem? What is the proposed solution to it? 10. Key Facts and Figures Around 1/5th of world population have no access to electricity A billion more have only an unreliable and not steady supply of electricity Of people without electricity, 85% lives in rural areas or in outskirts of the city. Extending energy grid into these areas is expensive. According to UN of $35 billion-40 billion a year needs to be invested until 2030 so everyone on the planet can cook, heat and light their premises, and have energy for productive uses such as schooling According to IEA Number of energy poor people will barely budge, and 16% of the worlds population will still have no electricity by 2030 11. Bottom up Solution What is that ? Why it cant be Top down solution? 12. Providing energy in a bottom-up way has a lots of benefit. There is no need to wait for politicians or utilities to act Also, technology such as solar panels to lowenergy light-emitting diodes (LEDs) is rapidly falling in price Local, bottom up way may be more sustainable and produce fewer carbon emission For this, companies need to come up with innovative business models and technology.. 13. Let there be Light 14. Initiatives At Lighting Africa conference in Nairobi, World Bank encouraged private sector to come up with Innovative ideas. Around 50 major electrical companies showcased their ideas. This shows that there is growing interest in bottom up approach and falling price. Prices of solar cell have fallen. Cost per kilowatt was half what it is a decade ago. Cells can be used to power low-energy LEDs(energy-efficient and cheap) This could replace the usage of kerosene in 10 years Benefits are: Families in developing country spend 30% of their income on kerosene and it causes indoor air pollution and fire. This can be avoided. 15. BUT.. 16. Such systems are beyond the reach of verypoorest Sam Goldman, CEO of D. Light says There are hundreds of millions who can afford clean energy, but there is still a barrier for the billions who cannot His firm has developed a range of solar-powered systems that can provide up to 12 hours of light after charging in sunlight for one day. 17. So.. 18. It is not just new technology that is needed butnew models Most of the bottom up energy entrepreneurism is focused on South Asia, where 570m people in India, Pakistan and Bangladesh, mostly in rural areas, have no access to electricity, according to the IEA. One idea is to use locally available biomass for generating power in village level micro grid 19. You can make a change 20. Husk Power System An Indian Firm Uses second world war era diesel generators fittedwith biomass gasifiers that can use rice husks Wires are strung on cheap, easy to repair bamboo poles Provide power to around 600 families for each generator Co-founded by a local electrical engineer, Gyanesh Pandey. They have established five mini-grids in Bihar, Indias poorest state, where rice is a staple crop Consumers pay doo r to door collectors upfront for power, and Husk collects a 30% government subsidy for construction costs Its initial plants were profitable within six months, so 21. Husk Power System(In Picture) 22. Emergence Bio Energy Bangladesh based Firm Its aim is to provide many entrepreneurialopportunities around energy production For example, A cattle farmer in a small village in Bangladesh might operate on 1KW generator in his house. It is powered by methane from cow manure stored in his basement. He can then sell surplus electricity to his neighbors and use the waste heat from the generator to run a refrigerator to chill milk. This preserves the milk. In this way, it offers new sources of income to the farmer (selling power and other services, such as charging mobile phones or running an internet kiosk) and provides power to others in his village. 23. Bharat Petroleum Limited Another Project, It encourages usage of canistersof Liquefied Petroleum Gas instead(LPG) of traditional wood burning. Indias four state-owned regional power companies, including Bharat Petroleum Corporation, will build a national network of thousands of LPG-powered community kitchens Local entrepreneurs will then provide the LPG and charge villagers to use the kitchens in 15minute increments 24. Selco Solar Indian Firm promoting new energy technologies Harish Hande, MD of Selco Solar says Importantthing is not so much to deliver energy to the poor, but to provide new ways to generate income His firm has devised a solar-powered sewing machine 25. Extra Study 26. Studies shows that.. Developing countries have a lot of solar energywhich is still untapped. Solar energy are taxed so high in African countries such as in poorest Ethiopia where it would have been more beneficial to the people who could not afford or currently have no access to electric power. Biomass energy efficiency technologies such as improved cook stoves, high efficiency charcoalmaking kilns, and alternative, sustainable solid and liquid biomass fuels -- can play in alleviating energy poverty. 27. What is the current situation? 28. Even though we have new technologies andmodel, logistics of bringing out them can be difficult. Main challenges are: Providing investment for energy schemesNow most schemes are funded by angel investors, foundations and social venture-capital funds Building and maintaining the necessary distribution systems to enable them to reach sufficient scale Distribution is also a problem, particularly in Africa and South Asia, where the majority of the worlds energypoor live 29. Hurdles of bottom up approach High import duties on clean energy products inmany developing countries hamper their adoption by the poor Ethiopia, for example, imposes a 100% duty on imports of solar products, while Malawi charges a 47.5% tax on LED lighting systems Such taxes can only be afforded by rich people. 30. Conclusion 31. What can be done? To solve this, we need to create favourablebusiness conditions and the human capital to build companies like Husk Energy and Selco. The business pioneers who are proving that companies selling to poor consumers can grow, prosper, and provide a reasonable ROI are leading us to real, sustainable solutions to global poverty. Also Governments need to lower the barriers to venture creation, financing, and the movement of products and goods 32. Did you know there is Solar powered Coke bottle?http://www.youtube.com/watch?v=Q0_4qF rxw_4


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