Empowering rural electrification with solar financing
Rural communities in developing countries do not have access to modern forms of energy. World Bank financing through governments and local village banks forms a very good network for reaching people who need loans to purchase renewable energy systems.
Despite the advancement in technology and the reduced cost of solar systems per peak watt, the disposable income of rural communities would not allow them to purchase these systems. On the other hand, companies selling renewable energy did not have the capacity to lend systems to their customers due to the limited cash flow problems these companies face. These companies also do not have a loan recovery mechanism to ensure proper payment of the installed systems. So the result was that rural electrification was not possible.
Now people in the rural community can go to their local banks or village micro-credit banks, apply for a solar loan and work out payment plans appropriate to their individual income, which can be easily verified by the staff of the microfinance institutions. The microfinance institution will then sign an agreement with the government’s rural electrification agency (REA) and the vending company. The microfinance institution will place an order with the vendor for the total number of systems required by its members. And the selling company will go ahead with the supply and installation of solar systems for the identified customers.
Roles of the 3 parties
1. REA, to guarantee the quality of the system supplied by the seller and to do an energy audit on each system and give government funds to the seller company upon successful completion of the work.
2. SACCO, to identify the end user customer in need of a solar system, determine their ability to repay the loan, extend the loan, and ensure they receive a quality solar system. Identify suitable solar energy sales companies.
3. Solar energy sales company, to ensure a quality supply of the solar system, install and verify that it is in proper operating condition, and recover payment of sacrifices and subsidies from the government after successful installation.
The rural community will be served with solar home systems (SHS). But each of the SACCOs can have a renewable energy supply system outside the Village grid, which can supply the entire village.
The following advantages can be obtained from such a system.
1. Community projects such as water pumping, community room, telecentre, health clinics, internet cafe, etc.
2. Excess energy is sold to the national grid if the renewable energy system is close to the grid.
3. Greater security for the electricity supply
4. Small factory and processing equipment for the benefit of the town and as a money-generating activity.
5. Biofuel generator, biofuel kitchen. The lantern and the making of soap from glycerol will serve as an encouragement for people to grow Jatropha as a commercial biofuel crop.
Biofuel production: use of Jatropha, the next generation sustainable fuel.
What is biodiesel?
As the volatile Middle East continues to affect global oil supplies, countries like Uganda are shocked by the costs of importing heavy oil. Fossil crude oil prices hit $100, this is combined with the erratic and rising dollar rate (at last month’s high dollar rate, this translates to sh230,000) per barrel this year and are expected to hit the mark of $150 (345,000 sh) in two years.
Increasing and erratic oil prices and a volatile dollar are prompting many countries to seek alternatives to achieve energy independence. This has intensified research and fueled the development of biofuels as the most reliable energy alternative.
The production of biodiesel from Jatropha Carcus, commonly known as ‘Ekilowa, has many advantages. Ekilowa is well known in Uganda and is commonly used as a support for vanilla vines and sometimes as a hedge.
Jatropha, a drought-resistant perennial crop with a lifespan of more than 40 years, is a member of the Europhobiaceace family. Its seeds can produce about 37% non-edible oil.
One kilogram of seeds produces 200 ml of oil. Each tree can produce one and a half kilograms of seeds per year at first and as it grows it can produce up to 6 kilograms. On a 1 acre plot you can plant 1000 spaces of jatropha trees at 2 meter intervals.
The global biodiesel market is estimated to reach 37 billion gallons by 2016, with average annual growth of 42%.
Lankveld said that the development of biofuels offers the most immediate and viable response to emerging economies in the tropics to produce and supply the global energy market and reduce carbon dioxide emissions as part of the battle against climate change.
Our company has launched a demonstration project on the shores of Lake Victoria. It will supply renewable energy products and process biofuels.
The company will not depend on new plantations to obtain its raw material. Instead, you will start by buying already available Jatropha nuts from existing plants. This year it intends to collect around 10,000 kg of seed from vanilla farmers in Mukono, Kayunga, Jinja, Iganga, Kamuli and Bugiri districts, from which it hopes to extract 3,300 liters of oil… The company also will plant about 40 hectares (about 60,000 trees) of jatropha on a new farm that we purchased.
The project will also provide farmers with high-quality jatropha seeds to increase crop production in the future. Instead of establishing large plantations, the company is promoting Jatropha as a means of diversification for farmers, encouraging its integration alongside millet, sorghum or maize and reviving those who had abandoned it due to market disappointments. of vanilla and using it as fencing material. for their farms.
We believe in small-scale, decentralized biodiesel processing plants, where there is local production of jatropha nuts to minimize transportation. We also believe that the sale of vegetable oil stoves will encourage local farmers to grow jatropha and other oil crops primarily as a source of kitchen cooking fuel and later as a commercial cash crop venture. We will also sell you small manual oil mills so that you can extract your own oil for domestic use.
The first trial run of Uganda electronics and computer industry ltd small scale off-grid renewable energy and biodiesel plants will take place in November 2010. However, from October we are organizing awareness seminars in 3 districts , collecting seeds, selling stoves and processing oil.
The UN Special Rapporteur on the Right to Food recently recommended Jatropha as a biofuel crop for developing countries. Jatropha was recommended due to its high inedible oil content, gestation period, and ability to grow in degraded soils.
Developing countries need to invest in biofuel production because with climate change, the world’s energy policies will change for the worse.
Uganda can excel in biodiesel production as most of the people derive their income from agriculture. Jatropha offers enormous potential to alleviate poverty and improve health. A farmer can earn up to $250 (sh 427,500) a year from a 1 km jatropha hedge.
long term potential
Speaking of the long-term potential of biodiesel, the realities of biodiesel markets, a successful biodiesel business plan begins with an effective feedstock strategy from which process design flows. To make biodiesel a long-term business opportunity, attention must be paid to the critical issue of availability of the right feedstock at the right cost.
Jatropha will be a great source of biofuels and a key to reducing our dependence on fossil fuels. Jatropha can bring significant environmental benefits. It can replace jet fuel and fossil fuel from oil companies without interfering with food crops or clearing forests. The good thing about jatropha is that you are producing a tree-like shrub that lives a long time and does its job. Producing oil while also sequestering a lot of carbon from the atmosphere. Jatropha is a multipurpose crop to alleviate soil degradation, desertification and deforestation, which can be used as bioenergy to replace diesel, firewood for cooking and soap production and climate protection and thus deserves special attention. Jatropha can help increase rural income, self-sufficiency and alleviate poverty.