Kakute presentation at renewable energy day

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  • To bring Mobisol system on East African market, Dt Power has two partners.One is Kakute (in Arusha, Tanzania). The other is you, SCODE. Kakute-Project started earlier so they installed a hundred systems already.The ‘lessons learned’ in Arusha will help us here in Nakuru, Kenya.With your help we will find 100 customers and get the systems installed.Lucy or Manyanga can tell a little about how project went in Arusha.
  • These are the lines on which communication flows between the different actors: from customer to Kakute to Dt Power.Any Questions?Customer Hotline for Customers need to be presented!!!
  • What do you get with your system: Excellent quality panel, battery, charge controller and Mobisol, with cables, switches and mounting frame, Lights, mobile charger and battery charger with batteries. You can pay with mobile money (M-PESA)The system is guaranteed to keep working until its paid offIt will save heaps of money once it is permanently unlockedThere are no power cutsTheft prevention devices have been includedDO A BRAINSTORM: Urban Myths, Really true?
  • Kakute presentation at renewable energy day

    1. 1. Private sector Initiative in Pre-finance RETs in Tanzania. By Mr. Manyanga Livinus Executive Director KAKUTE Presented on National Workshop on TAREA Renewable day. 6th June 2012 Dar Es Salaam.
    2. 2. The Content. Energy sector in Tanzania Current government FYDP Objectives 2015 The use of RETs in Tanzania The challenge and potential market Financial mechanism for RETs the lesson Mobisol typical RETs pre- finance business Module Communication structures Key principles Experience and lessons Critical issues. Conclusion.
    3. 3. Energy sector in Tanzania Tanzania has a per capita electricity consumption of 46/KWh per annum. Approximately 14 percent of the population has access to electricity and consumption is growing at the rate of 11–13 percent annually. Where electricity is available, the quality of supply is poor and blackouts and other service interruptions are common. Currently, maximum demand is 833 MW and installed capacity is 1006 MW but average availability is 650MW. There is no reserve margin, and hence during breakdowns and droughts load shedding of about 160 MW is common 12 hours a day.
    4. 4. Current government FYDP Objectives2015The goal Develop reliable, economically accessible and appropriately priced energy supplies to facilitate the development of other activities in the economy while ensuring environmental sustainabilityOperational Objective  Explore the possibility of utilizing other potential of energy – e.g. geothermal, solar, wind, coal, etc;  Enhance Tanzania’s regional trade share by connecting to at least 50 percent of grids of its riparian countries;  Improve the institutional management of power generation, transmission and supply.
    5. 5. The use RETs in Tanzania Most of Tanzania depends on non-conventional source of energy. These include biomass (wood, crop residues, animal waste), animal power and solar. RETs in Tanzania have concentrated on biomass and solar energy. Wind energy and micro-hydro technologies are present, but not on a wide scale. There has been a lot going on in rural electrification in the past several years, but nonetheless, little has changed. On the contrary: the number of people who have to live without electricity continues to grow. Has the time come for a new approach?
    6. 6. The challenge and potentialmarket. Energy policy state that one of the challenges facing the government is to reach rural households: Around 80% of the population has very low purchasing power and depends mainly on wood-fuel for cooking and kerosene for lighting, which have negative consequences to the environment and the quality of life, especially to the rural poor The deployment of renewable energy technologies in Tanzania is at various stages of advancement, although it is not well quantified and its documentation is outdated. The policy focuses on renewable deployment on biomass, solar, micro/mini hydro and wind since as it was felt that technologies for these energy sources could be disseminated in the short term.
    7. 7. The company and market Firms face difficulties operating in rural areas Transportation cost is extremely high Extra costs arising from unanticipated maintenance, component replacement, outreach efforts and training Several companies are well developed but others are out of business.The main factor which affect the dissemination of RETs in Tanzania include  Awareness about renewable energy institution/association  Government policies  The poverty level  Suitability of the technologies  The level of public education and  The existence of an enabling environment
    8. 8. Financing mechanism the lessonFinancial mechanism could be one solution but Credit access difficult, but not insoluble, Credit risk a serious concern - risk sharing is helpful  Diversify risk  Credit guarantees Longer credit terms are needed to stimulate demand – but few MFIs are willing Credit can be expensive
    9. 9. Mobisol typical RETs Pre-financemodule. The Mobisol Solar Home System Project aims to provide affordable solar home systems to people living without access to electricity. This project follows on from the installation of 200 Mobisol Solar Home Systems (SHS) in 2011 and 2012 in Tanzania and Kenya. In Tnzania KAKUTE and Mobisol GbmH introduce the business July last year and in six months 97 customers receive SHS of different size 60W, 120W and 200W on credit and warrantee for three years. 56 customer are from two villages in Arusha district and 41 in two villages from Meru district. What does the business involve?  Selling four different size systems payable in affordable repayment amounts.  Customers can install the solar home systems on their own roofs because it is so easy.  Business provides pre-finance and three years of free service to customers.
    10. 10. Pilot Phase – PartnershipsSCODE, Nakuru, KE 100 households/ businesses Kakute, Arusha, T Z 100 households/ Pilot Phase - Partnerships businesses
    11. 11. Communication StructureQuestion, request, complaint Direct reply if possible Project Manager Technician
    12. 12. The key principles Strong Business Principles  Pricing, credit terms, product quality, flexibility product offerings. Capacity to Meet Needs of Clients  Supply energy products best suited to the needs and purchasing power of the client. Technical Training  Energy company must agree to train staff, particularly technical and marketing personnel who has direct contact with customers.
    13. 13. The experienced lesson. Development of the value chain of actors in different level is very important this include Manufacture, supplier and distributer, promoter and trainer, technical service and end user. RETs Promoter need to identified common factors related to customer, staff, and manufacturer relationships that contributed to the early success of their RETs lending programs. First, the importance of determining the specific energy needs and preferences of customers through market research, and using research findings as a basis for selecting energy technologies and designing loan products. Product demonstration should be the centerpiece of
    14. 14. Critical issues. The successful dissemination if any technology is accompanied by a favorable environment. This is especially the case where new technologies being introduce. Most RETs can be placed in the category, Part of this environment is the markets, the people and the economic climate of the country. Sales messaging should prioritize cost savings and product capabilities over environmental impacts. Cultivating a sales force that is knowledgeable and enthusiastic about the product is critical, which means that investments in staff training and education are essential. Cultivating active partnerships with quality manufacturers who can provide technical and logistical assistance both prior to and after product sales was considered indispensable. Demand assurance that manufacturers will honor warrantees and prove dependable in supplying products to meet growing customer demand as their
    15. 15. Conclusion, Tanzania has an abundance of renewable energy resources limited exploitation has bedeviled efforts to transform the promise of renewable energy into reality. Expanded exploitation will require several fundamental changes and policy interventions. Some of the measure that would encourage large scale dissemination of renewable energy include education in school curricula, vocational Training centre and other relevant learning institutions; emphasis should be on practical aspects including physical demonstration, installation and operation. establishment of micro enterprises linked together with MFI and investors.
    16. 16. Benefits and Limitations Q: What are the advantages and disadvantages we have already spoken about?
    17. 17. Thank you for your attention

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