Download - InWEnt - With renewable energies to integrated solutions Conceptualizing RE Strategies Heinz -W. Böhnke Bonn, 19-21. November 2007.

InWEnt - InWEnt - With renewable energies to integrated solutionsWith renewable energies to integrated solutions

Conceptualizing RE StrategiesConceptualizing RE Strategies

Heinz -W. BöhnkeHeinz -W. Böhnkewww.INSABA.orgwww.INSABA.org

Bonn, 19-21. November 2007Bonn, 19-21. November 2007


Situation

World Energy Supply disintegratesWorld Energy Supply disintegrates

• Oil peak is here : Oil peak is here : prices, conflictprices, conflict

• Losers are weak countriesLosers are weak countries

• Most are not prepared Most are not prepared

• Seek solution using Seek solution using moremore fossils fossilsprivatization, gas, coal: worsening the optionsprivatization, gas, coal: worsening the options


Renewable Energy Option

Reservations towards REReservations towards RE

• Inertia Inertia of conventional training, procedure, financeof conventional training, procedure, finance

• Knowledge Knowledge is limited on long-term impactis limited on long-term impact

• Experience Experience was not always encouragingwas not always encouraging

• Convenience Convenience of innocence, aid supportof innocence, aid support


Renewable Energy Strategy

Developing a strategyDeveloping a strategy

• Income Income rather than technology, donationrather than technology, donation

• Productive applications Productive applications for SMEs for SMEs with different skill / investment requirementwith different skill / investment requirement

• RE on demand RE on demand instead of solutions-pushinstead of solutions-push

• InWEntInWEnt is capacity building, not operation, finance is capacity building, not operation, finance


Expansion Strategy

The INSABA wayThe INSABA way

• Explore user demand Explore user demand inform, show, coachinform, show, coach

• Form advisory network Form advisory network give integrated give integrated specialists a fresh view on opportunities with RE specialists a fresh view on opportunities with RE

• Train trainers Train trainers on technology options, economyon technology options, economy

• Support economic environment Support economic environment with exhibitions, press work, policy round tablewith exhibitions, press work, policy round table



Calculation of ROIBarber

Investment Capital 5.500

Investment Lifespan 7

Production 720Price/unit 15,00

Revenue 10.800

Variable cost/unit 0,00

Cost of energy/unit 0

Total fixed costs 0

Amortization/unit: 1,09

Direct costs/unit: 1,09

Gross Margin/unit 13,91

Fixed costs/unit 0,00

Total costs 1,09Net Margin 10014,29

ROI 182%

Payback period years

0,51

Establish ViabilityEstablish Viability

1.1.Pre-Assessment Pre-Assessment with simple, graphic tools.with simple, graphic tools.And only if viable :And only if viable :

2.2.Study Market Study Market competition, perspectivecompetition, perspective


Suitable Technologies

Product RangeProduct Range Suitable TechnologiesSuitable Technologies

11 Watering / Irrigation Watering / Irrigation Wind / PVWind / PV

22 Drying / HeatingDrying / Heating Thermal/ solar thermalThermal/ solar thermal

33 ProcessingProcessing Solar electric, microhydro Solar electric, microhydro

44 IT servicesIT services Solar electricSolar electric

55 Micro Energy ServicesMicro Energy Services Solar electric, microhydro Solar electric, microhydro

6 6 etcetc

Decentralized Power Decentralized Power ServiceService

Solar electric, microhydro, Solar electric, microhydro, wind, hybridwind, hybrid


Examples: Zambia

Sylvia Food PromotionSylvia Food Promotion• Dried food very marketable in ZambiaDried food very marketable in Zambia

• Company provides solar driers to farmersCompany provides solar driers to farmers

• Both benefit from better processing, priceBoth benefit from better processing, price


Examples: Namibia

Cell Phone ChargingCell Phone Charging

• A supplier lends systemsA supplier lends systems

• Simple, low-cost, replicableSimple, low-cost, replicable

• Profitable in off-grid areasProfitable in off-grid areas

• Received Sam Nujoma Innovative Received Sam Nujoma Innovative Entrepreneur Awards 2006Entrepreneur Awards 2006


Examples: South Africa

South African Brewery (SAB Miller)South African Brewery (SAB Miller)

• Contractor provides process heatContractor provides process heat

• Quantity of lower temperature Quantity of lower temperature saturated steamsaturated steam

• Parabolic dish solar heater Parabolic dish solar heater implemented in stepsimplemented in steps


Lessons

Lessons learnedLessons learned• Hard shift from beneficial to productiveHard shift from beneficial to productive

• Poor are integrated as contractorsPoor are integrated as contractors

• New business + new technology is risky:New business + new technology is risky:strict market assessment requiredstrict market assessment required

• Prefer available technology, implement in Prefer available technology, implement in stepssteps

• Think big, start small, scale fast !Think big, start small, scale fast !


Thank You Thank You for Your for Your AttentionAttention

Thank You Thank You for Your for Your AttentionAttention