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Financing Models for Electrifying Private Health Clinics with Solar Power: Lessons from Population Services Kenya

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Electricity is crucial for providing quality healthcare services. Decentralized renewable technologies will allow much of Africa to leapfrog into a world of clean and uninterrupted electricity supply. This is already happening. Population Services Kenya (PS Kenya) has provided solar power backup solutions to 23 privately-owned clinics within its network, offering financial assistance in the form of loans and business support to accelerate solar system ownership. This innovative model has helped the clinics work with solar power, uninterrupted by grid blackouts.

Learn more and watch the full webinar at https://www.wri.org/events/2019/06/financing-models-electrifying-private-health-clinics

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Financing Models for Electrifying Private Health Clinics with Solar Power: Lessons from Population Services Kenya

  1. 1. FINANCING MODELS FOR ELECTRIFYING PRIVATE HEALTH CLINICS WITH SOLAR POWER: LESSONS FROM PS KENYA Webinar: June 13, 2019
  2. 2. CHRISTOPH PETERS Trama TecnoAmbiental
  3. 3. Financing Models for Electrifying Private Health Clinics with Solar Power Christoph Peters Trama TecnoAmbiental (TTA), Barcelona christoph.peters@tta.com.es
  4. 4. Recent Examples and Lessons Learned Cases: • Ghana – 15 remote CHPCs • Chad – Hospital in N’Djamena • Chad – Hospital in Goundi
  5. 5. Challenges: • Intermittent genset service • High operating expenses • Power cuts during health care • Mess of existing installations • Low-efficiency appliances Objectives: • Access: enable basic services • More autonomy or resilience • Reduction of operating expenses • Supply critical loads Success factors: • Energy-efficient building design • Detailed demand assessment • Focused engineering design • Involvement of local staff and resources • Empowering users • O&M contract for sustainable service Recent Examples and Lessons Learned
  6. 6. 15 off-grid clinics in remote areas in Ghana Northern Region and Volta Region (URC – USAid) • Objective: Enable basic services in remote areas • 100% solar • End-users: clinic and 2 dwellings for staff Clinic (right) and two dwellings (left) - TTA
  7. 7. 15 off-grid clinics in remote areas in Ghana Northern Region and Volta Region (URC – USAid) • Capacity: 3 kWp / 4 kVA • Energy availability: 8-12 kWh every day (depending on the season) • Priority loads (clinics) and non-priority loads (staff) with automatic demand-side management (1.8 kWh/day for each of the dwellings, clinic unlimited) Energy room - TTA Clinic and dwellings - TTA
  8. 8. 15 off-grid clinics in remote areas in Ghana Northern Region and Volta Region (URC – USAid) Success Factors: • Standardized pre-assembled solution, best branches • Introduction of demand management devices • User training on rational use of energy (initial and refresher) • 1 year O&M service (no major incidences, one broken module) • Whatsapp group for technical service and teambuilding • Prepared for future grid-connection / genset support Challenges: • Careful selection of consumption devices needed (fridge consuming nearly 50% of the available energy/dwelling) Low-efficiency fridge - TTA
  9. 9. Centre Hôpitalo-Universitaire Bon Samaritain (CHUBS), N’Djamena, Chad • Grid-connected hospital to weak grid • Average of 500 visitors per day • Consists of 15 buildings, including a medical school
  10. 10. CHUBS N’Djamena, Chad Donnor: Conferencia Episcopale Italiana Objective: Reduce cut off times and energy expenses Solar plant: • Capacity: 180 kWp, grid-connected • Lithium-ion batteries for powerful quick response • 135 kVA genset back-up Results: • Elimination of cut-offs for medical purposes • Theoretical cost reduction for fuel and grid electricity of 50-60% Challenge: Demand increase!
  11. 11. Hôpital Bon Samaritain, Goundi, Chad Donnor: Conferencia Episcopale Italiana
  12. 12. • Off-grid running on diesel generators • Average of 300 patients per day • Includes a nurse school Hôpital Bon Samaritain, Goundi, Chad
  13. 13. • Priority circuits: high, medium, low • High-consumption loads: autoclave, iron, centrifuge, washing machines • Daytime demand, coincides with PV production • Load characterisation: priority, base, deferrable, interruptible… Demand assessment Hôpital Bon Samaritain, Goundi, Chad
  14. 14. Hôpital Bon Samaritain, Goundi, Chad Objective: Provide 24/7 supply and reduce fuel expenses Solar plant: • Capacity: 65 kWp, standalone • Lead-acid batteries for robustness • 110 kVA genset back-up existing Results: • Uninterrupted base supply • Prioritization of demand • High solar fraction Challenge: Integration
  15. 15. RITA MWACHANDI Population Services Kenya
  16. 16. Energy for Health Program Case study: Tunza Social Franchise Kenya Rita Mwachandi
  17. 17. INTRODUCTION 17 Kenya’s health care system at a glance:  Population of 48 million people  Working toward achieving UHC by 2022  10,820 registered health facilities – 51% are private facilities  47% of Kenyans in the poorest wealth quintile go to private facilities for health care services Tunza Social Network  Tunza Family Health Network started in August 2008  Offering primary health care  Over 400 facilities across Kenya
  18. 18. BUSINESS CONTINUITY INTEGRAL TO SUSTAINABILITY Self-reported effects of inconsistent power  No working after sunset  Poor lighting affecting care  Poor storage for vaccines  Infection control compromised  Revenue loss  96% of Tunza facilities rely on the national grid power  More than 3 working days in a month with no power  16% of facilities use diesel generators for backup
  19. 19. • 18 month solarization project of health clinics funded by DFID in 2017 • 23 loans disbursed, 12 fully repaid in one year • Business growth a great motivator to facility’s decision to adopt solar backup PS KENYA SOLARIZATION PROGRAM Sample of equipment installed in Tunza Facilities
  20. 20. • Business continuity: Longer operating hours and staying open after sunset • Saving on energy costs: Reduced reliance on main grid and wise use of electricity • Enhanced customer satisfaction: Around-the-clock access to services PROJECT IMPACT
  21. 21. • Middle-cadre health professionals that own small/middle size health facilities • Average of 40-year-old nurse/clinical officer with over 15 years of experience • Keen on quality of care and good customer service, as they perceive these as key to business growth TUNZA PROVIDERS
  22. 22. OPTIMIZING THE USE OF SOLAR “Our franchise owners are fiercely committed and experienced in community healthcare, but they are not business people.” How We Support: 1. Business advisory services to help providers understand if investing on a energy system is worthwhile 2. Better planning on energy yields allowing for bigger economic returns for the clinicians 3. Record-keeping on data consumption patterns 4. Financial planning to increase bankability and profitability
  23. 23. • Post-program evaluation jointly conducted with WRI to help advise scale-up activities • Request from clinics to scale up the system, allowing them to power more equipment • Business advisory services are important in helping providers optimize system LESSONS AND NEXT STEPS
  24. 24. EMILY KAMAU Focus Medical Maternity & Counseling Center of Kiambu County
  25. 25. JEM PORCARO UN Foundation
  26. 26. Q&A

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