1.3 billion people don’t have access to electricity. That’s 18% of the world’s population.

More are supplied from old diesel systems and at the fringe of grids (FOG).

High cost, poor performance, high risk ….

We know hybrid renewable RAPS supply is more cost effective than diesel or grid extension.

The market for RAPS is huge and getting bigger.

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We have understood for years that:

• Infrastructure development is only 25% of the solution.

• Solutions have to meet well-understood needs

• Demand has to be well defined and managed

• The solution has to be fit for purpose

• The service delivery model has to engage the community

• Funding arrangements have to be sustainable

Image Source – Horizon Power 2010

For an energy solution to be genuinely sustainable it must:

• Meet customer needs at an affordable price point

• Represent great life cycle operating and financial performance

• Efficiently utilise the best available local energy resources

• Be able to be operated and maintained over its entire expected life

• Present an attractive return on investment

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If we keep relying on aid and grants for RAPS development we’ll get the same uncoordinated, sporadic and sub-optimal developments.

What Balance has found over the last five years working with Pacific Island communities and mining customers alike is that service pricing and revenue models are also central to creating sustainable business cases for commercial investment.

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