UNITED NATIONSFRAMEWORK CONVENTION

ON CLIMATE CHANGEIN-SESSION WORKSHOP ON CLIMATE

CHANGE MITIGATION

PROMOTION OF RENEWABLE ENERGIES IN ISOLATED RURAL AREAS IN PERU

Teodoro Sanchez CamposEnergy Programme ManagerITDG- Office for Latin America

Intermediate TechnologyDevelopment group (ITDG)

• Founded in 1966 by EF Schumacher, ITDG is an international group of development organisations with charitable status. Its head office is in the UK, with regional and country offices in Africa, Asia and Latin America.

Rural Energy in Peru Demand and Resources

• High concentration of people in the Andes and Upper Jungle

• Family income, US$ 300 to US$1500 yearly

• Good potential of hydro resources in the Andes and Upper Jungle

• Rural people of the Coast have better opportunity to get electricity from the grid.

• In the lower Jungle the resources are based on PV, Biomass and river current, the last one in small quantities

Lack of financial mechanisms

Lack of affordable technology

Lack of appropriate legal framework

Lack of local capacity

Financial model with public and private participation

•Appropriate technology development and transfer•Build the manufacture capacity

•Appropriate management schemes•Build local capacity

Promotion of an appropriate legal framework

ITDG strategyClean energies: small hydro, wind, solar, biomass

BARRIERS SOLUTIONS

I – COST REDUCTION/APPROPRIATE TECHNOLOGY

Low cost intakes

Low cost channel

Low head turbines

River current turbine

Motor as generator

SMALL HYDRO

Hualgayoc, August 2002Huacho, may 2001

I – COST REDUCCTION/APPROPRIATE TECHNOLOGY

SMALL WIND ELECTRCITY GENERATORS

SOLAR PV

I – COST REDUCCTION/ APPROPRIATE TECHNOLOGY

“Use of rise husk for brickmaking, north of Peru

I – COST REDUCCTION/ APPROPRIATE TECHNOLOGY

BIOMASSBIOMASS

RESULTS•27 SHPP installed (more than 1.6

MW)•US$ 900,000 allocated•5,000 rural families connected to

electricity •About US$ 3.5 million leveraged•Increased the capital to US$ 700,000•More than 200 micro enterprises

created or strengthened

II- FINACIAL MODELS

REVOLVING FUND FOR THE INSTALLATION OF SMALL HYDRO SCHEMES

Initial capital US$ 400,000, loans from US$ 10 to 50 thousand, interest rate 10% yearly, recovery periods 1 to 5 years

III- MANAGEMENT MODELS

ITDG/ESMAP MODEL

PROPIETARIO

USUARIOEMPRESA

Contra

to d

e co

nces

ión

Pago

por l

a con

cesió

n

Contrato de servicio

Pago por consumo

MANAGEMENT MODEL

ASAMBLEADE USUARIOS

(Organismofiscalizador del

servicio)

Management of SHPPManagement Micro Enterprise

Tariff scheme

US$/kWh

Block I

Block II

Block III

kWh

Training(CEDECAP)

•Operators•Administrators•Leaders and authorities•users

III- DEVELOPMENT OF MANAGEMENT MODELS

SHPP AND PRODUCTIVE USES

GENERAL CONCLUSIONES

• The cost of equipment and parts goes down to 1/2 up to 1/5 of the conventional costs

• The cost of operation and maintenance using local human resources goes down to 1/5 up to 1/10 of the conventional costs.

• The sustainability of the schemes improves greatly because of the direct intervention of local people on management and operation.

• The strategy allows the building of the local capacity not only for energy but for other activities

• For faster dissemination, it is necessary the intervention of the government.

• The strategy is replicable