Transcript Document

The Philippines AMORE Project:
Renewable Energy as a Catalyst for
Social and Economic Development
Ellen S. Bomasang
APEC Village Power Workshop
November 7-10, 2004
Hanmer Springs, Canterbury, New Zealand
Winrock International
Private non-government organization
 Currently implementing more than 160
projects around the world
 Headquarters in state of Arkansas
 Project offices in more than 40 countries
 Energy programs based in Arlington,
Virginia
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Winrock’s Core Programs
Clean Energy
 Agriculture
 Forestry and Natural Resource
Management
 Ecosystems Services
 Leadership Development
 Volunteer Technical Assistance
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Clean Energy Group (CEG)
Premise: Energy is a crucial input to
development, and its growth can be met in
an environmentally sustainable manner
Goal: Increase the use of environmentally
sustainable renewable energy (RE)
services in a manner that enhances socioeconomic development
CEG Products and Services
Technical Assistance
 Project and program preparation and
implementation/management
 Policy analysis and guidance
 Institutional capacity building
 Business advisory services
 Education and outreach
 Financing facilitation
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Clean Energy Group (CEG)
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Focus on
– Community mobilization and Building local
capacity in RE
– Accelerating RE commercialization and market
development
– Improving access to rural energy services
– Focus on socially and economically productive
applications
– Facilitating industry linkages
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Renewable Energy Project Support Office
(REPSO) network in Brazil, Guatemala,
Nepal, India, Indonesia, South Africa, and the
Philippines
Alliance for Mindanao
Off-Grid Renewable Energy
(AMORE) Program
Background on Project Area
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One of poorest regions, lowest level of public
services (e.g., electricity, education, water, health)
Conflict area with peace and order problems
– Former separatist rebel communities, long-time rebel
soldiers attempting civilian lives and livelihoods
– Some areas still contested/subject of peace
negotiations
– High risk of violence, including political, inter-clan
conflicts, robbery, kidnapping
– Heavily armed population with military weapons
– Many private companies limit activities for safety and
security reasons
AMORE: Mission Statement
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Contribute to peace and development
initiatives in Muslim Mindanao by
improving the quality of life in
unelectrified rural communities through
sustainable renewable energy projects
and effective community organizing
AMORE: Project Objectives
Support electrification of 160+ rural
communities (barangays) in Mindanao
using renewable energy systems for
lighting, productive uses, and social
infrastructure
 Support peace process by working with
former rebel communities for social and
economic development
 Project duration: February 2002 –
December 2004
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AMORE Sites
Stakeholders
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U.S. Agency for International Development (USAID)
Philippine Government, Philippine Department of
Energy (DOE)
Autonomous Region of Muslim Mindanao (ARMM)
Winrock International (project implementer /
manager)
Mirant Philippines (private sector donor)
Stakeholders
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Beneficiary communities
Sub-grantees/subcontractors (PEI, YAMOG, MDFI, YMFI,
SIBAT, SRE, MUFTI, IRG-P, NREL, WorldWater, NMSU
Other Philippine partners (rural electric cooperatives,
Philippine Government agricultural, fisheries, microcredit, SciTech, power sector agencies, and private
foundations)
Stakeholders have complimentary goals that need to be
balanced: project cannot be focused just on renewable
energy development and RE market development
Stakeholders’ Interests/Goals (1)
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USAID and Philippine Government: Support peace &
development in Mindanao, ensure communities benefit,
support clean energy development
Philippine DOE: Electrify all barangays in country, with at
least 30 households served in each barangay
ARMM Government: Support development, convince
residents that peace accord & regional government
provide benefits
Mirant Philippines: Help meet its commitment to DOE of
supporting electrification of 1,000+ communities
Stakeholders’ Interests/Goals (2)
Beneficiary communities: access to improved energy and
other services, social and economic development
 Winrock: Support peace & development, effectively
implement project while balancing stakeholders interests
 Compromises necessary due to competing goals:
– Focus on number of barangays, not full electrification of barangays;
– Focus on community organization & social, economic & institutional
development instead of exclusive focus on energy systems
MIRANT Philippines
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Largest independent power producer (IPP) in
Philippines
Mirant funds rural electrification, in part as a legal
obligation, in part as corporate donation
Providing more than $1.5 million in donations
(approximately $13,000/barangay)
Cooperation with Winrock under AMORE supports
the Philippine DOE’s policy of relying in part on
IPPs to co-finance and implement rural
electrification projects
Renewable Energy Technologies Used
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Solar PV battery charging stations (BCS), solar
home systems (SHS), streetlights, telecom, power
systems for other applications
Micro-hydro (5 prepared, 3 implemented)
Biomass (thermal applications)
Wind power not used due to low wind resource in
project area
PV BCS supported in part due to concerns about
inability to enforce monthly fees (too dangerous to
repossess SHS for nonpayment), PV focus now on
SHS, communications, education
Project Approach
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Not renewable energy (RE) development or RE market
development per se
Use RE for basic service and as catalyst to organize
communities for social and economic development
In marginalized/neglected communities, the RE
interventions have major impacts on peoples’ perception of
benefits of peace and hope for future
Difficult environment prevented on commercial approaches
to energy system/service supply
Work with BRECDAs to prepare and implement social and
livelihood projects, including both RE and/or non-energy
projects
Maximize links between BRECDAs and vendors for repair,
parts, market expansion, battery recycling
Community Level Institutions
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Due to lack of producer cooperatives or other preexisting organizations in most AMORE communities,
institutions had to be created to manage energy systems
and collect fees.
BRECDAs (Barangay Renewable Energy and
Community Development Associations) were formed
Main BRECDA tasks:
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Operate and maintain energy systems;
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Collect fees and manage O&M fund;
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If possible, expand service to additional households
AND
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Pursue other economic and social development activities
Barangay Renewable Energy and Community
Development Association (BRECDA)
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BRECDA composed of electrified households, with elected
Chairperson and Treasurer, employs local operator or technician
Manages fee collection, O&M fund accounts
Systems/service is subsidized, but users must pay monthly fees:
$3 (U.S.)/month for service via battery charging station (BCS);
$5.40/month for solar home system (SHS)
O&M fund supports repair, partial cost of battery replacement,
expansion of service to new households
BRECDAs formally register, establish bank accounts
Winrock provides training in financial management, leadership,
and livelihood project preparation
O&M Fee Structure for Barangays
with PV BCS Systems
Components
Battery charging fee (with operator’s wage and cable
and clamp replacement cost)
Monthly
Fees
PhP 70.00
Battery replacement cost (50%)*
68.00
Cost of transporting dead battery to recycling depot
11.00
Livelihood capital build-up
11.00
Total monthly fee (56PhP/$US)
PhP 160.00
* The balance will be paid by the member upon battery replacement.
Sample O&M Fee Structure for
Barangays w/ Solar Home Systems
Components
Monthly Lease-to-Own Fee (75% AMORE, 25%
BRECDA member; 5-year payback; for expansion of
systems to more households)
Monthly Fees
PhP 118.00
BRECDA O&M service charge (including BCS operator’s
and technician’s salaries)
35.00
Battery replacement cost (41.67%)*
125.00
Cost of transporting dead battery to recycling depot
11.00
Livelihood capital build-up
11.00
Total Monthly Fee
(56PhP/$U.S.)
PhP 300.00
* The balance will be paid by the member upon battery replacement.
Projects Supported
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Basic electrification for lighting andHH uses is
major focus in all communities (minimum 30 HH)
Social/community services: street/dock lighting
(all), communications, water supply, school
electrification (others in 25+, )
Income-generating livelihood activities
– Productive use of RE (15+ pilots/demos)
– Other improvements to production and marketing,
including many with no energy intervention (30+)
Social Project Example: Telephony
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Evaluate technical options, institutional approach
Supervised payphones in central barangay locations
Testing different business models
Use of cellular (fixed or handset) or fixed satellite
technologies depending on service availability
Six GSM fixed cellular payphones and two fixed
satellite phones installed by November 2004
Modest revenue generation for most BRECDAs with
donated handset
Expanded rollout planned under AMORE 2
Other Social Pilot Projects
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School Electrification/Distance education
– Collaboration with Knowledge Channel
– Dual-use mini-cinema (TV-DVD) for both
entertainment and educational purposes
– Limited computer/ICT (2 communities)
Potable water supply
 Health
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– Link BRECDAs with malaria prevention
program of Shell Pilippinas Foundation (i.e.,
leverage BRECDA institution)
Two Main Types of Livelihood
or Productive Use Projects
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Productive use of renewable energy: mostly pilot and
demonstration projects
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Solar thermal and biomass thermal for drying
Micro-hydro for milling, workshop
Pumping/micro-irrigation for high-value crops
Aquaculture
Livelihood projects w/no energy component
– Improved seaweed production (Lantay, credit)
– Gravity-fed micro-irrigation for vegetables
* Can also provide TA for non-RE energy interventions (e.g. dieselpowered ice-making)
Livelihood Projects
Livelihood Project Approach
Partner Agencies
DOST, BFAR, UNDP
TLRC, DTI
• Work with BRECDAs/producers to assess options
• Build on existing economic activities
• Carragenan seaweed production
• Fishing, aquaculture
• Agriculture
Livelihood/Productive Use Projects:
Forms of AMORE Support
Technical assistance
 Information dissemination
 Capacity building
 Assessment of productive use energy
requirements and options (e.g., drying)
 Capital funding for productive use field
projects including demos, pilots, other
 Financing facilitation (QUEDANCOR)
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AMORE’s Implementation Strategy
for Productive Projects
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Assess existing livelihood to identify potential
productive application of RE, AND/OR other
ways to improve to production, post-harvest,
and marketing
Prepare feasibility study
Prepare plans using participatory process
Focus on productive use of RE
AMORE’s Implementation
Strategy for Productive Projects
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Design and implement training for the
BRECDA and members to
manage/implement the project
Facilitate access of BRECDAs to funding or
credit institutions and market information
Monitor implementation & institute needed
improvement as needed
Document experiences of implementation
Productive Demonstration
and Pilot Projects
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Solar and biomass-fired drying for fish, rice,
grain, seaweed
Micro-irrigation for high-value vegetable
production (PV and treadle pumping)
Grain and coffee milling (micro-hydro)
Aquaculture—lighting, modest aeration
Ice-making (TA only, for diesel-powered system)
In AMORE 2, increased focus on micro-hydro,
including for productive uses, and on communitybased natural resource management (CBNRM)
Accomplishments
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Electrified 141 communities and over 4,240
households with PV and micro-hydro by 8/2004
More than 200 communities and 6,300 households
to be electrified by 12/31/2004
170 Barangay Renewable Energy and Community
Development Associations (BRECDA) to manage
energy systems and implement economic
development activities (205 by 12/31/2004)
Trained BRECDA members on technical issues,
administrative and financial management
Accomplishments
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Contributed to peace process by engaging with
historically neglected communities
Recognition by USAID, Philippine government,
private donors, and communities of AMORE
project performance and benefits
Positive performance & community requests have
led to follow-on AMORE II project (FY2005-09)
Developed/piloted models (e.g., rural telephony)
for broader implementation in AMORE 2
AMORE 2 Follow-On Project
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October 2004-September 2009
(implementation starts 1/2005)
Target: At least 200 barangays including
20 micro-hydro (11,600 households)
Support peace & development in conflictaffection regions through provision of
basic rural electrification and related
services
AMORE 2 Follow-On Project
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Strengthen community abilities to effectively
manage natural resources and implement
economic development activities,
Micro-hydro sector strengthening to
improve ability of Philippine industry and
NGOs to assess, plan, and implement
micro-hydro projects
AMORE 2 Changes vs. AMORE
Increased focus on use of renewable
energy for high value social and
productive applications
 Major focus on microhydro development
 Community-based natural resource
management activities, including
watershed protection
 Develop lower-cost household lighting
options, increase cost-recovery
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