Potencialidad de La Zona Andina para Acceder Al Mercado de Carbono Completo

Microsol and Rexel Foundation
Study of the potential to

spread energy
efficiencys carbon
programs in Andean
countries
Paris, May 2014
www.microsol-int.com
www.rexelfoundation.com
Table of contents
Table of contents..........................................................................................................................................3
Acronyms and Abbreviations .......................................................................................................................7
Foreword ......................................................................................................................................................8
Acknowledgments ......................................................................................................................................10
Executive summary in English ....................................................................................................................11
Introduction and methodology ..................................................................................................................28
I.
Electricity and lighting context in the Andean countries ....................................................................32

I.1
Electricity and lighting needs ......................................................................................................33
I.1.1
Traditional solutions for electricity and lighting access ..........................................................33
I.1.1.1 Getting to know the area to understand people needs ......................................................33

I.1.1.2 Electricity and lighting for off-grid people: uses and traditional
I.1.2
II.
solutions .......................35
Needs for efficient lighting and electricity access in rural areas .............................................37
Efficient electricity and lighting solutions ...........................................................................................45

II.1
Upsides of efficient decentralized solutions ...............................................................................46
II.1.1
Grid solutions VS decentralized solutions ...........................................................................46
II.1.2
The relevance of decentralized solutions in Andean countries ..........................................47
II.2
Renewable energy and lighting solutions ...................................................................................50
II.2.1
Solar energy for electricity generation ...............................................................................50
II.2.2
Wind turbines .....................................................................................................................51
II.2.3
Hydro energy ......................................................................................................................51
II.2.4
Biodigestion for electricity generation ...............................................................................52
II.2.5
Lighting solutions ................................................................................................................54
II.2.6
The distribution model .......................................................................................................55
II.2.6.1
Energy Hubs ....................................................................................................................55
II.2.6.2
Home Systems ................................................................................................................56
II.2.6.3
Mini-grid .........................................................................................................................57
II.2.6.4
Cost comparison between mini-grid and home systems ................................................57
II.2.7
II.3
Conclusions on technological options.................................................................................58
Creating a successful access-to-energy project ..........................................................................61
II.3.1
Towards ownership: design the project with stakeholders ................................................62
II.3.1.1
Identification of the needs .............................................................................................62
II.3.1.2
Stakeholders involvement: consultation and implication ...............................................63
II.3.2
Towards ownership: management model ..........................................................................64
II.3.3
Towards ownership: project implementation ....................................................................66
II.3.3.1
Participation of the users ................................................................................................66
II.3.3.2
Participation of the stakeholders ....................................................................................67
II.3.4
Towards ownership: project operation ..............................................................................68
II.3.4.1
Training of users .............................................................................................................68
II.3.4.2
Training of local technicians ...........................................................................................69
II.3.5
Toward ownership: long-term sustainability ......................................................................70
II.3.5.1 Long-term follow-up visits ..................................................................................................70

II.3.5.2 Maintenance & Repair activities .........................................................................................71
II.3.5.3 Recycling .............................................................................................................................72
II.4
III.
Conclusions on the Part II ...........................................................................................................73

Relevance of carbon markets for rural electricity and lighting access ............................................74
III.1
General presentation of carbon markets....................................................................................75
III.1.1
Compliance carbon market VS Voluntary carbon market ...................................................75
III.1.2
Projects versus programs of activities ................................................................................76
III.1.3
Carbon certification process ...............................................................................................76
III.1.4
Assessing revenues and costs: carbon methodologies .......................................................77
III.1.5
Emission reductions and carbon credits .............................................................................78
III.1.6
Impacts of carbon markets on projects sustainability ........................................................79
III.2
Methodologies for energy and lighting access ...........................................................................79
III.3 General criteria to assess the relevance of carbon markets for a lighting or electricity access
project 82
IV.
III.3.1
General criteria ...................................................................................................................82
III.3.2
Profitability on carbon markets ..........................................................................................82
Relevance of carbon markets in the Andean countries for rural electricity and illumination access
84
IV.1 Screening of projects in each country .............................................................................................85

IV.1.1
Rural electricity and lighting context in Colombia ..............................................................85
IV.1.2
Rural electricity and lighting context in Ecuador ................................................................85
IV.1.3
Rural electricity and lighting context in Peru ......................................................................86
IV.1.4
Rural electricity and lighting context in Bolivia ...................................................................87
IV.1.5
Rural electricity and lighting context in Chile .....................................................................87
IV.1.6
Electricity and lighting projects...........................................................................................88
IV.2
Eligible projects in each country: overview ................................................................................93
IV.3
Eligible projects in each country: detail of main opportunities ..................................................95
IV.3.1
Peruvian bidding for rural electrification through solar panels ..........................................95
IV.3.2
Diffusion of solar lanterns in Bolivia ...................................................................................96
IV.4
V.
Funding opportunity for a carbon scheme focused on access-to-energy issues.........................98
Conclusions and recommendations .................................................................................................100

V.1. Costs-benefits analysis : find the equilibrium between scale and economic viability ...................100
V.1.1. Cost-benefit for lighting activities certification on the carbon market ...................................101
V.1.2. Cost-benefit for disseminated renewable energy activities certification on the carbon market
.........................................................................................................................................................103
V.2. The need for an innovative approach in the valorization of access to energy services .................105
V.2.1. Possible strategies for improving the carbon sales assumptions ...........................................105
V.2.2
Application for lighting and disseminated ENR projects ...................................................106
V.3. Proposal: An improved carbon scheme fostering the valorization of access to energy services
projects through impact-based partnerships .......................................................................................107
Bibliography .............................................................................................................................................108
Sitography ................................................................................................................................................110
Annexes ....................................................................................................................................................112
I.
II.
Country fact sheets.......................................................................................................................112

I.1
Colombia ..............................................................................................................................112
I.2
Ecuador.................................................................................................................................121
I.3
Peru ......................................................................................................................................129
I.4
Bolivia ...................................................................................................................................137
I.5
Chile ......................................................................................................................................147
Technological sheets ....................................................................................................................156

II.1
Solar panels ..........................................................................................................................156
II.2
Wind turbines .......................................................................................................................164
II.3
Micro hydro centrals ............................................................................................................171
II.4
Biodigesters ..........................................................................................................................179
II.5
Lighting solutions ..................................................................................................................185
III.
Projects visits ............................................................................................................................194
III.1
September 2013, San Juan de Abiseo (Peru) GIZ, solar lanterns .......................................194
III.2
September 2013, Pucar (Peru) Practical Actions, multi-technology.................................198
III.3
October 2013, Sicuani (Peru) Practical Actions, solar panels .............................................204
III.4
October 2013, Paruro (Peru) CECADE, multi-technologies ................................................212
III.5
October 2013, Canas (Peru) Grupo PUCP, river-turbines ...................................................219
III.6 October 2013, Mizque, Aiquile, Santiago de Machaca (Bolivia) PEVD and Energtica, solar
panels 226
III.7
November 2013, Tarapaca (Chile) Desafio Levantemos Chile, solar panels .......................237
III.8
November 2013, Esmeraldas (Ecuador) SEBA and FEDETA, solar panels ...........................242
III.9
November 2013, Bolivar (Colombia) Ipse, followers solar panels ................................250
III.10
December 2013, Lima (Peru) Market study ...................................................................256
III.11
Short field visits ................................................................................................................258
IV.
Carbon analysis.............................................................................................................................266
IV.1
Lighting projects .......................................................................................................................266
IV.1.1
Lighting: Eligibility criteria to enter carbon markets .........................................................266
IV.1.2
Lighting: Costs and benefits analysis ................................................................................269
IV.2
Electricity access projects .........................................................................................................274
IV.2.1
Electricity access: Eligibility criteria to enter carbon markets ...........................................274
IV.2.2
Electricity access: Costs and benefits analysis ..................................................................276
V. Other ................................................................................................................................................281
V.1
Peruvian bidding summary ...................................................................................................281
V.2
Regional electrification maps: comparison of the number of rural households lacking
electricity access...............................................................................................................................285
V.3
List of interviews and conferences ...........................................................................................286
V.4
Interview guidelines .............................................................................................................293
V.4.1
Interview guidelines for institutional actors .................................................................293
V.4.2
Interview guidelines for fields visits .............................................................................296
Acronyms and Abbreviations

CME
Carbon Management Entity
CFL
Compact fluorescent lamp
ECLAC (CEPAL)
Economic Commission for Latin America and the Caribbean
ENDEV
Energizing Development program
ER
Emissions reduction
GHG
Greenhouse Gas
GIZ
German Cooperation Agency (Gesellschaft fr Internationale Zusammenarbeit)
GS
Gold Standard
HLD
Household
IADB (BID)
Inter-American Development Bank (Banco Interamericano de Desarrollo)
LAC
Latin America and the Caribbean
LED
Light-emitting diode
LPP
Local Project Manager
MDG
Millennium Development Goal
MHG
Micro Hydro Generators
MINEM
Peruvian Energy Ministry (Ministerio de Energa y Minas)
MWG
Microwindgenerators and Miniwindgenerators
NGO
Non-Governmental Organization
RE
Renewable energy
OLADE
Latin American Energy Organization
UNIDO
United Nations Industrial Development Organization
PA
Practical Actions (International NGO)
PoA
Program of Activities
SHS
Solar Home System
SNV
Duch NGO (Stichting Nederlandse Vrijwilligers)
UN
United Nations
Foreword
The Rexel Foundation's mission is to promote access to energy efficiency for all based on three key
pillars. One of them, knowledge,is to raise awareness of energy efficiency in order to improve our
understanding of the issues and the possible solutions through studies, conferences and workshops, as
well as through the support and advice of expert committee members. In line with that commitment, the
Rexel Foundation decided to partner with Microsol on the study presented in the following document.
Microsol is a social organization that supports project developers of appropriate technologies in Latin
America through notably the valuation of their environmental impacts on the international carbon
market in order to obtain financial resources for the sustainability of their initiatives. Microsol is reputed
both for focusing on programs with a high contribution to poverty alleviation, which is a key issue in the
study, and for its expertise in measuring the impact on communities. Finally, Microsol is a solid
organization that has committed to the Rexel Foundation in a close and transparent partnership.
This study meets all of the Rexel Foundations core principles for taking part in a project:
-
It is socially innovative, as it focuses on projects that drive social progress, improve quality of life
and provide better access to sustainable sources of energy for the most disadvantaged in
society: in this case, remote rural population in the Andean zone;
The study focuses on technologies that are environmentally friendly and provide energy savings
that could be implemented in the Andean zone to increase access to energy efficiency for all,
provide energy savings for end-users and have a significant positive environmental impact;
The study was conducted in a collaborative partnership with a work process involving research
and the collaboration of all stakeholders (local and national authorities, NGOs, private
companies) as well as many visits to rural communities.;
The final part of the study discusses ways of making these carbon schemes repeatable and
scalable.
The objective of the study was to identify and explore:

-
The dynamics involved in spreading energy efficiency programs among the most disadvantaged
populations;
The opportunities for using carbon mechanisms to foster their widespread dissemination.
The perimeter included five countries: Bolivia, Chile, Columbia, Ecuador and Peru, according to both
Rexels and Microsols geographical presence.
After seven months of field survey and bibliographic research and by gathering qualitative information
on geographical, social, technical, managerial, operational and economic aspects, this study provides
solid answers. It suggests concrete actions to take in order to provide access to energy efficiency for
disadvantaged people through carbon mechanisms.
It ultimately exceeds its initial purpose by raising an additional issue: How should carbon credit schemes
evolve to better contribute to the development and the sustainability of projects with high social and
environmental content whose aim goes beyond mere carbon reduction?
While the next step of the Kyoto Protocol is being questioned, this study provides original knowledge
and points the way to ready-to-experiment projects, thus making a valuable contribution to reflection on
the future of carbon mechanisms.
I hope that many will take the time to read this report and reflect on its lessons for the potential of
fighting poverty thanks to energy efficiency programs and a new approach to enhancing their value
inspired by a UN mechanism.
Xavier GALLIOT
Sustainable Development Director for the Rexel Group
General Secretary for the Rexel Foundation for a Better Energy Future
Acknowledgments
The study of the potential to spread energy efficiencys carbon programs in Latin America was
undertaken by a team comprising the Rexel Foundation and Microsol. The report itself was prepared by
several authors including Abdou Mourahib, Pol Raguns, Aurlien Cartal, Armand de Durfort, Charlotte
Vailles (all from Microsol). The study and report preparation were managed by Emilie Etienne from
Microsol.
The study would not have been possible without the voluntary contributions of a large number of people
and institutions, including Ministries, the Inter-American Bank of Development, international
cooperation agencies, United Nations bodies, NGOs, research centers, company and final users of the
technologies, as well as without the funding of Rexel Foundation.
The study team members would like to dedicate this report to the people who are still lacking efficient
electricity and lighting access in the Andean countries and who struggle with dignity to improve their
everyday lives.
Please address any questions or comments about this report to:
Emilie Etienne (eetienne@microsol-int.com).
Executive summary in English

This report provides an analysis of the potential
to spread energy efficiencys carbon programs
in Latin America, focusing on 5 Andean
countries (Colombia, Ecuador, Peru, Bolivia and
Chile) and two main issues: access to electricity
and lighting for poor people. The study was led
by Microsol and funded by the Rexel
Foundation, from June 2013 to May 2014.
Methods of investigation include: (i) and (ii) an
analysis of projects potential (needs of the
population, available technologies, projects
success criteria), (iii) a carbon analysis (eligibility
criteria, assessment of the economic interest for
projects to enter the carbon market) and (iv) a
feasibility assessment related to the carbon
market for electricity and lighting projects, (v)
with recommendations on the different options.
The results of this study are based on interviews
of key actors in the five countries considered
(175 people interviewed from 97 institutions),
field visits of ten renewable energy projects and
literature review. The recommendations are
made on basis of Microsols experience and
anticipations.
Limitations
The analysis conducted has limitations, including
differences in statistics according to the sources.
The statistics presented here are the most
recent and from sources that were considered
as the most reliable. For international
comparisons, we used as much as possible data
from international statistics agency such as
ECLAC. In addition, there is no clear definition of
what access to electricity means. For example,
in Colchane (Chile), close to the Bolivian border,
the city is considered as electrified even if

people have only 3 hours a day of light.
Electricity and lighting context in the

Andean countries
Although the area of the study is large and
extremely diverse, it can be divided into three
very different areas, relatively homogeneous in
terms of culture and climate: the Highlands, the
Coast and the Amazon rainforest. The cultural
and productive activities of these three areas
are various, impacting needs for energy.
Nonetheless, all the off-grid households share
the same basic use of electricity: the most
widespread uses of electricity for households
are lighting, radio (for local news, music and
communication) and charging cellphones. For
health centers, electricity is necessary for many
activities, including to store vaccines and to
perform activities by night (childbirth for
example). For education, electricity is necessary
to use modern pedagogical tools (computers,
videos, etc.) and to fight the technological gap
between urban and rural children.
To perform these activities, candles, kerosene
and diesel lamps (also called wick lamps) as well
as non-rechargeable batteries are the most
frequent solutions. Small businesses sometimes
use more expensive solutions such as a diesel
generator or car batteries.
This lack of efficient electricity and lighting
access is limiting development, preventing
improvements in education, health, security and
economic situation at households and
communities level. The environment is also
impacted at an international level through
greenhouse gas emissions, which increase
global warming.
6.1 million rural people in the five countries are

in this situation, lacking proper electricity
access, although with great variations between
the five countries. Bolivia has by far the lowest
rural electricity rate even if it is in Peru that the
absolute number of rural people without
electricity access is the highest, followed by
Bolivia and closely by Colombia. Chile almost
completed its rural electrification process.
COLOMBIA
13 % of rural households without
electricity (1,5 million rural people)
46% of people are poor in rural areas
ECUADOR
PERU
BOLIVIA
CHILE
Efficient electricity and lighting solutions

Relevance of decentralized electricity and
lighting systems in the Andean countries
Even if grid extension and grid densification are
the governments preferred options for
electrification, they are sometimes not suitable
in rural areas. Decentralized electricity
generation solutions such as renewable energy
solutions can be relevant for electricity and
lighting if they are cost-competitive (compared

to grid extension), technically and legally
feasible, with the following remarks:
1. Andean countries have a very low
population density compared to the
rest of the world, reducing the
relevance of the extension of national
grid in remote areas. Nevertheless, the
situation
is
far
from
being
homogeneous, with Bolivia having less
than 10 inhabitants/km2 and Ecuador,
more than 60 inhabitants/km2 (as a
comparison, Frances density of
population
reaches
almost
100
inhabitants/km2).
2. House dispersion is high in the five
countries since the communities
needing electrification are usually the
smallest ones. Farming activities is one
of the reasons of the extreme
dispersion of houses.
3. Non-electrified
communities
are
difficult to access in the five countries,
because they are usually located in the
jungle or in the highlands, with only a
few or no roads at all.
4. The government willingness to pay for
grid extension is very different in the
five countries, impacting the interest in
renewable energy based systems. For
example, in Bolivia, the government is
willing to pay 950 for grid extension
per household, while Chile can invest up
to 13 800.
5. Lighting needs are a special case: apart
from lighting houses, farmers frequently
need a moveable lighting solution to be
able to work in the fields outside of

daylight hours.
Choosing the right technology

Choosing the right renewable energy solution
depends on the availability of natural resources,
cultural habits, costs, needs and the distribution
system (energy hubs, mini-grids, individual
systems). This study focused on six
technologies: solar panels, micro hydro
turbines, biodigesters for electricity generation,
wind turbines and stand-alone lighting devices,
with the following remarks:
1. Biodigesters for electricity generation
are not suitable for a single family (too
expensive) and there are very few
biodigesters for electricity generation at a
community level because of the deficiency
of organic inputs.
2. When houses are close to each other
and when water is available all year long,
hydro tends to be the cheapest technology.
Nonetheless, these two specific conditions
make it difficult to implement micro hydro
at a large scale.
3.
Wind turbines are not used a lot in
the Andean countries. Limitations include
lack of detailed wind maps.
4.
Solar works almost in every region
of Andean countries thanks to high solar
radiations. It is by far the most frequent
solution for off-grid rural electrification,
despite of its higher costs.
5.
In Latin America, only solar
lanterns are currently used as lighting
stand-alone devices.
Creating a successful energy project

After more than a decade of renewable energy
projects for rural electrification, technologies
are well known and technical failures are
relatively limited. The greatest challenges for
renewable energy projects, is the necessity to
foster a sense of ownership and care by endusers and stakeholders during the five stages of
the project: (i) the projects design should allow
the creation of (ii) a proper management model,
which will define (iii) the implementation
process, (iv) operations and (v) long-term
sustainability.
During the project design, it is important to
create the conditions for projects ownership,
through a close identification of needs, the
participation of end-users and the implication of
stakeholders in the whole decision-making
process.
The management model should be agreed
during the project design: it should define who
is responsible for the installations, service and
maintenance, and how the costs are covered.
Many management models already exist,
ranging from totally private initiatives, to
philanthropic models where the beneficiaries do
not cover any costs, including cooperative
management systems, through community
electricity committees, etc. The choice of the
managing model depends on the actors
willingness to pay, the organization of the
community, the stakeholders implication
As a third step, users and stakeholders
participation during project implementation is
necessary for their good acceptance of both the
project and their own responsibility in it.
To guarantee the sustainability of the project,
installations should be used in a proper way.
The training of end-users is of the utmost

importance:
the
training
should
be
understandable and adapted, at a collective and
individual level; instructions for use should be
explained several times to several members of
the households. If possible, local technicians
should be trained, especially if the community is
very remote. For solar projects for example, the
most common problems lie in the battery use:
the lack of distillated water, its overuse, or its
misuse for cars, reduce its lifespan.
Even if the projects are successful in the short
term, the long-term success is not guaranteed:
funds are often lacking for follow-up visits or to
deal with recycling issues.
The calculation of carbon emissions reduction is

based on a methodology, created by a carbon
certification body (the United Nations (UNFCCC)
or other certification standards like the Gold
Standard, Verified Carbon Standard, etc). The
carbon revenues depend on the reduction of
emissions and on the price of carbon credits
while the carbon costs will depend on the
monitoring requirements. Carbon monitoring is
different if the installations are connected
through a mini-grid (several households are
connected to one electricity generator) or if
installations are disseminated (for example,
each household has its own solar panel or its
own wind turbine).
The third section of the report studies the

relevance of carbon markets to address the
issues renewable and lighting projects are
facing.
Carbon markets
Carbon
markets
allow
a
continuous
improvement, impacts certification and longterm financial support for projects that reduce
the emissions of greenhouse gases.
There are two main mechanisms for the carbon
market:
the compliance market, linked to the
Kyoto protocol and legal obligations to
reduce emissions,
the voluntary carbon market
Microsol works primarily with the voluntary
market: not only the market entrance process
is shorter (about 2 years) but it is also possible
to generate more financial resources in the
voluntary market than in the compliance
market, due to carbon credits flexible prices in
the first one.
Carbon methodologies
electricity projects
for
lighting
This study focused

methodologies:
on
two
and
carbon
For renewable energy projects: the Gold

Standard methodology, Micro-scale
electrification and energization
- For lighting: UNFCCC, AMSIII.AR, Substituting fuel based
lighting with LED/CFL lighting
systems
The following remarks can be observed:

For renewable energy:
5,000
Potential
carbon
revenues
10,000
households
households
In the case of In the case of
mini-grids:
mini-grids:
12 to 70 kUSD 24 to 100
per year
kUSD per year
In the case of
disseminated
devices:
5 to 20 kUSD
per year
In the case of
disseminated
devices:
10 to 40 kUSD
per year
Projects of electricity generation through

renewable energy may not be easy to
implement on the carbon market. They require
a lot of work throughout the crediting period,
which will depend on the technology and the
type of installation. However, it may be worth it
for the project developer to enter the carbon
market, if the size of the project is big enough.
For lighting:
Potential
carbon
revenues
10 000 lamps
60-120 kUSD
50 000 lamps
300-600 kUSD
Projects of solar lighting devices distribution

appear to be quite easy to set in place through
the carbon market. In addition, solar lamps are
relatively cheap (USD 15 USD 80). Monitoring
requirements and eligibility criteria are not very
stringent. However, carbon revenues are not
very high and a consistent amount of lanterns
seems required to achieve profitability.
Carbon market
countries
opportunities
in
Andean
The carbon market can be a relevant option if

two conditions are met:
-
Carbon mechanisms must have been

considered during the Projects design
step and must be necessary to increase
the emissions reduction. This is the
additionality
or
previous
consideration criterion.
The benefits from the carbon credits

sales must be higher than the costs
linked
to
the
carbon
market
certification.
The amount of claimable carbon credits

depends on the size of the project and on the
efficiency of the installations (for example, if a
solar lantern is not working anymore, or if it is
not used by the family, it will not generate any
emission reduction).
We evaluated the minimum project size to
reach the break-even point after 8 years on the
carbon market. In other words, we calculated
what the minimum size of a project is so that,
after 8 years on the carbon market, costs are
equal to revenues:
-
9 000 14 000 families electrified with

disseminated
renewable
energy
installations, considering a total
installed power of 1150 kW (except for
energy resulting from biodigesters1).
1 Another methodology should be used to calculate

biodigester s emissions reduction: this study does not
detail such methodology because of the lack of projects
dealing with biodigesters for electricity generation in the
Andean countries.
8 000 12 000 very poor families2

electrified with mini-grid renewable
energy
installations
(except
biodigesters) with a daily consumption
of 500 Wh, or 2000-3000 families with a
slightly
better
living
conditions
(2kWh/day).
900 - 1 300 schools electrified with
mini-grid renewable energy installations
(except biodigesters).
1 200 - 1 800 health centers electrified
with mini-grid renewable energy
installations (except biodigesters).
13 000 - 19 000 lanterns (a family can
own several lanterns).
The next section provides recommendations on

the minimum amount of installations that would
be necessary to generate enough benefits with
the carbon market.
Conclusions on the relevance of carbon market

for projects set up in the 5 Andean countries
1.
While Chile, Peru and Colombia
promote both the voluntary and the compliance
carbon markets, Bolivia and Ecuador have an
intermediate position. In Ecuador, the
compliance market is well developed but there
is only one project registered on the voluntary
carbon market. As far as Bolivia is concerned,
there is no compliance market and a few
projects on the voluntary carbon market. The
position of the Mother Earth Office, responsible
for the official position of the Bolivian
government on carbon markets, is still unclear
on this issue but might evolve in 2014.
Situation of very poor beneficiaries who own the bare

minimum (they may own lamps, and radios for example,
but nor fans neither fridges).
2.
All the Andean countries have currently
renewable energies projects, but only a few
projects
match
the
carbon
market
requirements, especially the size criterion.
3.
Apart
from
Chile
where
the
electrification rate is very high, all the Andean
countries aim to reach a universal (or almost
universal) access to electricity within 15 years,
which should result in the development of
consistent solar projects in rural areas carried
on by the national governments. At this stage,
Ecuador and Colombia are developing solar pilot
projects in order to replicate them by 2016.
Bolivia and Peru benefit from a greater previous
experience regarding isolated solar panels
implementation.
4.
Independent lighting solutions are only
considered by government programs in Bolivia.
In Peru, the private sector is getting organized
with the support of the Endev program
(coordinated by GIZ, German cooperation) to
spread this technology.
Eligible projects in the short term

Two projects in the Andean regions could
benefit from carbon credits:
1.
In September 2013, the Peruvian Energy
Ministry published an invitation to tender to
electrify up to 410 000 households, 7530 health
centers and 2100 schools through solar panels.
Up to 3 companies can win the tender; each of
them would be responsible for one region
(Northern, Center or Southern Peru).
The tender is supervisedby Osinergmin, the
countrys supervisory agency for investments in
energy and mining, with consultancy from the
InterAmerican Development Bank (IADB). The
bidding results will be published on September

12th, 2014.
The project will be implemented in the second

semester of 2014, for 5 years.
For this project, there should be no problems

with the previous consideration of carbon
market criteria since it is included in the project
database: all the bidders are likely to include
carbon consideration within their project. In
addition, carbon market is a hot topic in Peru
since the 20th conference on climate change
(Conference of Parties COP) will be held in
Lima in November 2014. But there is a risk that
this ambitious bidding fails.
This project is big enough to generate revenues

that offset the costs associated to carbon
market integration. Nevertheless, the net profits
are limited: it could be a good opportunity if the
solar lanterns market increase in Bolivia which is
likely to happen since many actors promote this
technology. In addition, key actors such as
Energtica are already familiar with carbon
market process and the methodology for solar
lanterns is relatively easy to implement.
Nevertheless, before integrating this project on
carbon markets, it would be first necessary to
get the government support regarding carbon
market relevance for the national political
orientations.
The graph below summarizes Microsols analysis

regarding the relevance of integrating this
project on carbon market:
The graph below summarizes Microsols analysis

regarding the relevance of integrating this
project on carbon market:
2.
In
Bolivia,
the
InterAmerican
Development Bank is funding a solar lantern
project (Phocos model, 80$), which will be
implemented by the NGO Energtica. 10 000
lamps should be distributed in a first step, and
5000 more it the test is successful.
Cost-benefits analysis: find the equilibrium

between scale and economic viability
region to be interesting for inclusion in the

carbon market. Alternatively, prices of carbon
credits in the international market for such
projects would need to be much higher.
Microsol produced a cost-benefit analysis of

renewable electrification and lighting in order to
find the equilibrium between scale and
economic viability on the carbon market.
(ii) The calculations are based on a 410 000

households solar pannels project, divided into
clusters of 50 000 households, such as the
current bidding in Peru:
All economical analysis are based on :
A multi-project approach like a PoA is an

average investment for the CME and would
result in profits for the LPP. It is reasonable to
think that joining sufficient projects to reach a
breakeven point at year 5 is feasible in the
Andean region: the perspective of the Peruvian
bid allows us to make this assumption.
Conclusions and recommendations
- Conservative assumptions in terms of price

(10 USD / issued carbon credit);
- The standard business model of Microsol
regarding division of responsibilities :
The LPP (Local Project Participant): the
owner of the project that is considered
for inclusion within the carbon scheme.
He is in charge of installation of units,
sustainability activities, and his own
monitoring.
The CME (Carbon Managing Entity): the
owner and manager of the carbon
scheme. He is in charge of all carbonrelated activities except the LPP
monitoring.
- The standard business model of Microsol
regarding revenues collection:
70% for the Local Project Participant
30% for the Carbon Managing Entity
Microsol analysed cost-benefits to certify (i)
lighting and (ii) renewable energy projects on
the carbon market.
(i) The calculations are based on a 15 000 solar
lamps project such as the one in Bolivia:
There is no carbon certification modality that
would reasonably allow a 15 000 units lighting
program to certify its impacts on the carbon
market. Volumes must be much higher than the
best opportunities identified in the Andean
To secure a more reasonable trend, it would be

probably necessary to secure higher prices for
the carbon credits.
The need for an innovative approach in
the valorization of access to energy services
There are two main strategies that could be
implemented for improving the carbon sales
assumptions:
1)
Improving the final price of the social
carbon credits
2)
Changing the nature of the certification
to certify and then value much better the social
impacts than the carbon market does. The
singularity of access-to-electricity and lighting
projects are not in favor of carbon market
certification: even if these projects have high
social impacts, they do not save as much
greenhouse emissions as other technologies
such as clean cook stoves.
Resumen ejecutivo en espaol

Este informe proporciona un anlisis del
potencial para difundir programas carbono de
eficiencia energtica en Amrica Latina,
centrndose en 5 pases andinos (Colombia,
Ecuador, Per, Bolivia y Chile) y dos temas
principales: el acceso a la electricidad y a la
iluminacin para la gente que vive en
condiciones de pobreza. El estudio fue dirigido
por Microsol y financiado por la Fundacin
Rexel, desde junio del 2013 hasta mayo del
2014. Los mtodos de investigacin incluyen: (i)
y (ii) un anlisis del potencial de los proyectos
(necesidades de la poblacin, las tecnologas
disponibles, criterios de xito del proyecto), (iii)
un anlisis de carbono (criterios de elegibilidad,
evaluacin de los intereses econmicos de los
proyectos para entrar en el mercado de
carbono) y (iv) una evaluacin de viabilidad en
relacin con el mercado de carbono para
proyectos de electricidad e iluminacin, (v) con
recomendaciones sobre las diferentes opciones.
Los resultados de este estudio se basan en
entrevistas a actores clave en los cinco pases
considerados (175 personas entrevistadas de 97
instituciones), visitas de campo a diez proyectos
de
energas
renovables
y
revisiones
bibliogrficas. Las recomendaciones se hacen en
base a la experiencia y las previsiones de
Microsol.
Limitaciones
El anlisis realizado tiene sus limitaciones,
incluidas las diferencias en las estadsticas de
acuerdo con las fuentes. Las estadsticas que se
presentan aqu son las ms recientes y de
fuentes que se consideran como las ms fiables.
Para las comparaciones internacionales, se
utiliz, en la medida de lo posible, los datos de
agencias internacionales de estadsticas como la

CEPAL. Adems, no existe una definicin clara
de lo que significa "el acceso a la electricidad".
Por ejemplo, en Colchane (Chile), cerca de la
frontera con Bolivia, la ciudad es considerada
como electrificada, incluso si la gente tiene slo
3 horas de luz al da.
El contexto de la electricidad y la
iluminacin en los pases andinos
Aunque el rea de estudio es grande y muy
diversa, se puede dividir en tres zonas bien
diferenciadas y relativamente homogneas en
trminos de cultura y clima: la sierra, la costa y
la selva tropical amaznica. Las actividades
culturales y productivas de estas tres reas son
variadas, impactando en sus necesidades de
energa. Sin embargo, todos los hogares
desconectados de la red elctrica comparten el
mismo uso para la electricidad: los usos ms
generalizados de la electricidad para los
hogares son la iluminacin, la radio (para las
noticias locales, la msica y comunicacin) y
cargar los telfonos celulares. Para los centros
de salud, la electricidad es necesaria para
muchas actividades, incluso para almacenar
vacunas y para realizar las actividades por la
noche (los partos por ejemplo). Para la
educacin, la electricidad es necesaria para el
uso de herramientas pedaggicas modernas
(ordenadores, videos, etc.) y para luchar contra
la brecha tecnolgica entre los nios que viven
en zonas urbanas y rurales.
Para realizar estas actividades, las velas, el
kerosene y las lmparas de diesel (tambin
llamadas mecheros) as como las bateras no
recargables son las soluciones ms frecuentes.
Las pequeas empresas utilizan a veces las
soluciones ms caras, como un generador diesel

o bateras de auto.
Soluciones eficientes de electrificacin e

iluminacin
Esta falta de acceso eficiente a la electricidad e

iluminacin est limitando el desarrollo, no
permitiendo que mejore la educacin, la salud,
la seguridad y la situacin econmica a nivel de
los hogares y las comunidades. El medio
ambiente tambin se ve afectado a nivel
internacional a travs de las emisiones de gases
de efecto invernadero, que aumentan el
calentamiento global.
Relevancia de los sistemas descentralizados

elctricos y de iluminacin en los pases
andinos
6,1 millones de personas que viven en zonas

rurales en los cinco pases se encuentran en
esta situacin, sin acceso adecuado a la
electricidad, aunque con grandes variaciones
entre ellos. Bolivia tiene de lejos la tasa ms
baja de electrificacin rural, aunque, si tenemos
en cuenta la cantidad de personas que viven en
zonas rurales sin acceso a la electricidad, el Per
tiene el nmero ms alto, seguido de Bolivia y
de cerca por Colombia. Chile casi ha completado
su proceso de electrificacin rural.
COLOMBIA
13% de los hogares rurales no tienen
electricidad (1,5 millones de poblacin rural)
46% de las personas son pobres en reas
rurales.
ECUADOR
10% de los hogares rurales no tienen electricidad
(0,5 millones de poblacin rural)
39% de las personas son pobres en reas rurales.
PER
50% de las personas son pobres en las reas
rurales.
BOLIVIA
55% de las personas son pobres en las reas
rurales.
CHILE
6% de los hogares rurales no tienen electricidad
(0,1 millones de poblacin rural)
9% de las personas son pobres en las reas rurales.
Incluso si la extensin y densificacin de la red

son las opciones preferidas de los gobiernos
para la electrificacin, a veces no es lo ms
adecuado en las zonas rurales. Las soluciones
descentralizadas de generacin de electricidad,
tales como fuentes de energa renovable
pueden ser relevantes para la electricidad y la
iluminacin si tienen un costo competitivo (en
comparacin con la extensin de redes) y si
tcnica y jurdicamente son factibles, con las
siguientes observaciones:
1. Los pases andinos tienen una densidad
de poblacin muy baja en comparacin
con el resto del mundo, lo que reduce la
relevancia de extender la red elctrica
nacional en reas remotas. Sin
embargo, la situacin est lejos de ser
homognea, con Bolivia que tiene
menos de 10 habitantes por km2 y
Ecuador, que tiene ms de 60
habitantes por km2 (como comparacin,
la densidad de la poblacin de Francia
llega a casi 100 habitantes por km2).
2. La dispersin de las casas es alta en los
cinco pases ya que las comunidades
que necesitan de electrificacin son
generalmente las ms pequeas. La
actividad agrcola es una de las razones
de la extrema dispersin de las casas.
3. Las comunidades no
de difcil acceso en
debido
a
que
normalmente en la
electrificadas son
los cinco pases,
se
encuentran
selva o en las
montaas, con slo unos pocos o sin

ningn camino para llegar a ellas.
4. La voluntad del gobierno para pagar
por la extensin de la red es muy
diferente en los cinco pases, afectando
el inters en los sistemas basados en
energas renovables. Por ejemplo, en
Bolivia, el gobierno est dispuesto a
pagar 950 por hogar para la
ampliacin de la red, mientras que
Chile puede invertir hasta 13 800 por
hogar.
5. Las necesidades de iluminacin son un
caso especial: adems de la iluminacin
en
casas,
los
agricultores
frecuentemente necesitan una solucin
de iluminacin mvil para poder
trabajar en el campo cuando no hay luz
de da.
Eligiendo la tecnologa correcta
Elegir la solucin tecnolgica adecuada basada
en las energas renovables depende de la
disponibilidad de los recursos naturales, los
hbitos culturales, los costos, las necesidades y
el sistema de distribucin (centros energticos,
mini-redes, sistemas individuales). Este estudio
se centr en seis tecnologas: paneles solares,
micro turbinas hidroelctricas, biodigestores
que generan electricidad, turbinas elicas y
dispositivos de iluminacin independientes, con
las siguientes observaciones:
1. Los biodigestores que generan
electricidad no son adecuados para una
sola familia (demasiado caro) y hay muy
electricidad a nivel comunitario, debido
a la carencia de insumos orgnicos.
2.
Cuando las casas estn cerca unas
de otras y cuando el agua se encuentra
disponible durante todo el ao, las
microturbinas hidroelctricas tienden a ser
la tecnologa ms barata. Sin embargo,
estas dos condiciones especficas hacen
que sea difcil de implementar esta solucin
a gran escala.
3.
Las turbinas elicas no se utilizan
mucho en los pases andinos. Las
limitaciones incluyen la falta de mapas
detallados del viento.
4.
Los paneles solares trabajan casi en
todas las regiones de los pases andinos
gracias a las altas radiaciones solares. Es de
lejos la solucin ms frecuente para la
electrificacin fuera de la red elctrica, a
pesar de sus mayores costos.
5.
En Amrica Latina, slo se
usan linternas solares como
dispositivos
autnomos
de
iluminacin.
Creando un proyecto de energa exitoso

Despus de ms de una dcada de proyectos de
energas renovables para la electrificacin rural,
las tecnologas son bien conocidas y las fallas
tcnicas son relativamente limitadas. Los
mayores desafos para los proyectos de energa
renovable son la necesidad de fomentar un
sentido de pertenencia y cuidado por los
usuarios finales y los socios durante las cinco
etapas del proyecto: (i) el diseo del proyecto
debe permitir la creacin de (ii) un modelo
adecuado de gestin, que definir (iii) el
proceso de implementacin, (iv) las operaciones
y (v) la sostenibilidad a largo plazo.
Durante el diseo del proyecto es importante

crear las condiciones para la apropiacin local
de los proyectos, a travs de una identificacin
de las necesidades, la participacin de los
usuarios finales y la implicacin de las partes
interesadas en todo el proceso de toma de
decisiones.
El modelo de gestin debe ser fijado durante el
diseo del proyecto: debe definirse quin es el
responsable de la instalacin, servicio y
mantenimiento, y cmo sern cubiertos los
costos.
Ya existen muchos modelos de gestin que van
desde iniciativas totalmente privadas hasta los
modelos filantrpicos donde los beneficiarios no
cubren ningn costo, incluidos los sistemas de
cooperativas, los comits de electricidad
comunitarios, etc. La eleccin del modelo de
gestin depende de la voluntad de pago de los
actores, la organizacin de la comunidad, la
implicacin de los socios...
Como tercer paso, es necesaria la participacin
de los usuarios y los socios durante la ejecucin
del proyecto para su buena aceptacin tanto del
proyecto como de su propia responsabilidad en
el mismo.
Para garantizar la sostenibilidad del proyecto,
las instalaciones deben ser utilizadas de una
manera adecuada. La capacitacin de los
usuarios finales es lo ms importante: la
capacitacin debe ser comprensible y adaptada
a nivel colectivo e individual, las instrucciones
de uso deben ser explicadas varias veces a
varios miembros de los hogares. Si es posible,
los tcnicos locales deben recibir capacitacin,
especialmente si la comunidad es muy remota.
Por ejemplo: para proyectos de energa solar,
los problemas ms comunes que se encuentran
son el sobreuso de la batera: la falta de agua
destilada, su uso excesivo o su uso en los autos,

reducen su vida til.
Incluso si los proyectos tienen xito en el corto
plazo, el xito a largo plazo no est garantizado:
los fondos suelen ser escasos para las visitas de
seguimiento o para hacer frente a los
problemas de reciclaje.
La tercera seccin del informe estudia la
relevancia de los mercados de carbono para
abordar los problemas que los proyectos de
energas renovables e iluminacin enfrentan.
Los mercados de carbono

Los mercados de carbono permiten una mejora
continua, la certificacin de los impactos y el
apoyo financiero a largo plazo para proyectos
que reduzcan las emisiones de gases de efecto
invernadero.
Existen dos mecanismos principales para el
mercado de carbono:
el mercado obligatorio, vinculado al
Protocolo de Kyoto y las obligaciones
legales para reducir las emisiones,
el mercado voluntario de carbono.
Microsol trabaja principalmente con el mercado
voluntario: no slo el proceso de entrada en el
mercado es ms corto (aproximadamente 2
aos), sino tambin es posible generar ms
recursos financieros en el mercado voluntario
que en el mercado obligatorio, debido a los
precios flexibles de los bonos de carbono.
El clculo de la reduccin de las emisiones de
carbono se basa en una metodologa creada por
un organismo de certificacin carbono (las
Naciones Unidas (UNFCCC) u otras normas de
certificacin como el Gold Standard, Verified

Carbon Standard, etc). Los ingresos generados
por los bonos de carbono dependen de la
reduccin de las emisiones y de su precio,
mientras que los costos dependern de los
requisitos de monitoreo. El monitoreo carbono
es diferente si las instalaciones estn
conectadas a travs de una mini-red elctrica
(varios hogares estn conectados a un
generador de electricidad) o si las instalaciones
estn dispersas (por ejemplo, cada hogar tiene
su propio panel solar o su propia turbina de
viento).
Metodologas carbono para proyectos de

iluminacin y electricidad
Este estudio se enfoc en dos metodologas
carbono:
-
Se hicieron las siguientes observaciones:

Para energa renovable:
5,000
10,000
hogares
Potenciales En el caso de
ingresos
mini-redes:
carbono
de 12 a 70
kUSD
por
ao
hogares
En el caso de
mini-redes:
de 24 a 100
kUSD
por
ao
En el caso de
dispositivos
aislados:
De 5 a 20
kUSD
por
ao
En el caso de
dispositivos
aislados:
De 10 a 40
kUSD
por
ao
Los proyectos de generacin de electricidad a

partir de energa renovable podran no ser
fciles de implementar en el mercado de
carbono. Estos requieren un intenso trabajo
durante el periodo de generacin de bonos que
depender de la tecnologa y del tipo de
instalacin. Sin embargo, si el tamao del
proyecto es suficientemente grande puede ser
valioso para el desarrollador de proyecto que su
proyecto ingrese al mercado de carbono.
Para iluminacin:
Para los proyectos de energa

renovable: la metodologa Gold
Standard, electrificacin a micro-escala
y energizacin
Potenciales
ingresos
carbono
10 000
lmparas
60-120 kUSD
50 000
lmparas
300-600 kUSD
- Para la iluminacin: la CMNUCC,

AMS-III.AR, La sustitucin de la
iluminacin en base a combustible con
sistemas de iluminacin LED / CFL
Es relativamente fcil integrar en el mercado de

carbono la distribucin de los dispositivos
solares para iluminacin. Adems, las lmparas
solares son relativamente baratas (USD 15
USD 80). Los requisitos de monitoreo y los
criterios de elegibilidad no son muy estrictos.
No obstante, los ingresos carbono no son muy
altos, por lo que se requiere una considerable

cantidad de linternas para lograr la rentabilidad.
Oportunidades del mercado de carbono en los
pases andinos.
El mercado de carbono puede ser una buena
opcin si se cumplen dos condiciones:
-
Los beneficios de las ventas de los

bonos de carbono deben ser ms altos
que los costos vinculados a la
certificacin del mercado de carbono.
La cantidad de bonos de carbono que se pueden

obtener depende del tamao del proyecto y de
la eficiencia de las instalaciones (por ejemplo, si
una linterna solar deja de funcionar o si deja de
ser utilizada por la familia, no generar ninguna
reduccin de emisin).
Nosotros estimamos que el proyecto que tiene
el tamao mnimo requerido es el que alcanza
su punto de equilibrio despus de 8 aos en el
mercado de carbono. En otras palabras,
calculamos que el proyecto que cuenta con el
tamao mnimo requerido es aquel que despus
de 8 aos en el mercado de carbono ha logrado
que sus costos sean iguales a sus ingresos:
-
El mecanismo del carbono debe haber

sido considerado en el diseo del
proyecto y debe ser necesario para
reducir las emisiones de carbono. A esto
le llamamos
adicionalidad o
consideracin previa.
9 000 14 000 hogares electrificados

con instalaciones a partir de energa
renovable, considerando un total de
potencia instalada de 1150 kW (sin
incluir la energa producida por los

biodigestores3).
8 000 12 000 hogares de familias muy
pobres4 electrificados con mini-red a
partir de energa renovable (sin contar
biodigestores) que consumen cada una
500 Wh/da, o 2000-3000 familias con
una ligera mejora de sus condiciones de
vida (consumo por hogar de 2kWh/da).
900 - 1 300 escuelas electrificadas con
mini-red a partir de energa renovable
(sin contar biodigestores).
1 200 - 1 800 centros de salud
electrificados con mini-red a partir de
energa
renovable
(sin
contar
biodigestores).
13 000 - 19 000 linternas (una familia
puede tener varias linternas).
La siguiente seccin contiene recomendaciones

sobre la cantidad mnima de instalaciones que
se necesita para generar considerables
beneficios con el mercado de carbono.
3 Debera usarse otra metodologa para calcular la

reduccin de emisiones de los biodigestores: este estudio
no detalla esta metodologa debido a la falta de proyectos
de biodigestores para la generacin de electricidad en los
pases andinos.
4
Situacin de los beneficiarios ms pobres que poseen lo

mnimo (lmparas y radio, por ejemplo, pero no
ventiladores, ni refrigeradoras).
Conclusiones sobre la relevancia del mercado

de carbono para los proyectos instalados en los
5 pases andinos
1. Mientras Chile, Per y Colombia promueven
ambos mercados de carbono, el voluntario y
el obligatorio, Bolivia y Ecuador tienen una
posicin intermedia. En Ecuador, el mercado
obligatorio est bien desarrollado pero
solamente existe un proyecto registrado en
el mercado voluntario de carbono. Con
respecto a Bolivia, no existe el Mercado
obligatorio y hay pocos proyectos dentro del
mercado voluntario de carbono. La postura
de la oficina de la Madre Tierra, responsable
de la postura oficial del gobierno boliviano
sobre mercados de carbono es todava poco
clara en este tema pero ser desarrollado
este ao.
2. Todos los pases andinos cuentan
actualmente con proyectos de energa
renovable, pero slo unos cuantos cumplen
con los requisitos del mercado de carbono,
especialmente con el criterio de tamao.
3. Excepto Chile, donde la tasa de
electrificacin es muy alta, todos los pases
andinos aspiran a alcanzar el acceso
universal (o casi universal) a la electricidad
dentro de 15 aos, que debera dar como
resultado el desarrollo de proyectos solares
consistentes en las zonas rurales llevados a
cabo por los gobiernos nacionales. En esta
etapa,
Ecuador
y
Colombia
estn
desarrollando proyectos solares pilotos con
el fin de replicarlos para el 2016. Bolivia y
Per se benefician de una mayor experiencia
previa en relacin con la implementacin de
paneles solares aislados.
4. Las soluciones independientes de

iluminacin son slo consideradas por
programas de gobierno en Bolivia. En
Per, el sector privado se est
organizando con el soporte del
programa Endev (coordinado por GIZ,
cooperacin alemana) para difundir esta
tecnologa.
Proyectos elegibles en el corto plazo

Dos proyectos en la regin andina podran
beneficiarse de los bonos de carbono:
1. En setiembre del 2013, el Ministerio de
Energa y Minas del Per public una
licitacin para electrificar 410 000
hogares, 7530 centros de salud y 2100
escuelas a partir de paneles solares.
Hasta 3 empresas pueden ganar la
licitacin; cada una de ellas estara a
cargo de una de las regiones (Norte,
Centro o Sur del Per).
La licitacin es supervisada por Osinergmin, la
agencia nacional que supervisa las inversiones
en energa y minera, con consultora del Banco
Interamericano de Desarrollo (BID). Los
resultados de la licitacin se publicarn el 12 de
setiembre del 2014.
Para este proyecto, no debera haber ningn
problema con la consideracin previa que pide
el mercado de carbono ya que est incluida en
la documentacin del proyecto: es posible que
todos los postores incluyan la consideracin
carbono dentro de su proyecto. Asimismo, el
mercado de carbono es un tema de gran
relevancia actual en el pas ya que Ia 20th
conferencia
sobre
cambio
climtico
(Conferencia de las Partes COP) se llevar a
cabo en Lima en el mes de noviembre de este
ao. Sin embargo, existe un riesgo de que esta

licitacin falle.
El grfico de abajo resume el anlisis de
Microsol sobre la relevancia de integrar este
proyecto al Mercado de carbono:
Adems, los actores clave como Energtica ya

estn familiarizados con el proceso del mercado
de carbono y la metodologa carbono para las
linternas solares es relativamente fcil de
implementar. No obstante, antes de integrar
este proyecto en el mercado de carbono,
primero sera necesario obtener el apoyo del
gobierno acerca de la relevancia del mercado de
carbono en las orientaciones polticas
nacionales.
El siguiente grfico resume el anlisis de
Microsol con respecto a la relevancia de integrar
este proyecto en el mercado de carbono:
2. En Bolivia, el Banco Interamericano de

Desarrollo est financiando un
proyecto de linternas solares (Modelo
de focos, 80$), que ser implementado
por la ONG Energtica. 10 000 focos
deben ser distribuidos en la primera
etapa y 5000 ms si el piloto es exitoso.
El proyecto ser implementado en el segundo

semestre del 2014, por 5 aos.
Este proyecto es suficientemente grande para
generar ingresos que compensen los costos
asociados a la integracin al mercado de
carbono. Sin embargo, las ganancias netas son
limitadas: podra ser una buena oportunidad si
el mercado de las linternas solares creciera en
Bolivia, lo que es probable que suceda ya que
muchos actores promueven esta tecnologa.
Conclusiones y recomendaciones
Anlisis costo-beneficio: encontrar el equilibrio
entre la escala y la viabilidad econmica
Microsol realiz un anlisis costo-beneficio de la
electrificacin renovable y alumbrado con el fin
de encontrar el equilibrio entre la escala y la
viabilidad econmica en el mercado de carbono.
Todos los anlisis econmicos estn basados en:
- Supuestos conservadores en trminos de

precio (10 USD / bono de carbono emitido);
- El modelo de negocio standard de Microsol
segn la divisin de responsabilidades :
Los LPP (Local Project Participant):
quien posee el proyecto que ser
considerado para la inclusin dentro del
esquema carbono. l est a cargo de la
instalacin de las unidades, actividades
de sostenibilidad, y su propio
monitoreo.
El CME (Carbon Managing Entity): quien
posee y administra el esquema carbono.
l est a cargo de todas las actividades
relacionadas con el carbono, excepto el
monitoreo LPP.
- El modelo de negocio standard de Microsol
segn los ingresos carbono:
70% para los Local Project
Participant
30% para la Carbon Managing Entity
Microsol analiz el costo-beneficio de certificar
(i) proyectos de alumbrado y (ii) proyectos de
energa renovable en el mercado de carbono.
(ii) Los clculos estn basados en un proyecto de
15 000 lmparas solares como el de Bolivia:
No se puede lograr la rentabilidad en el
mercado de carbono con un proyecto de 15 000
lmparas solares. Los volmenes deben ser ms
altos que las mejores oportunidades
identificadas para poder ser interesantes para la
inclusin en el mercado de carbono. Por otra
parte, los precios de los bonos de carbono en el
mercado internacional de estos proyectos
tendran que ser mucho ms altos.
(ii) Los clculos se basan en un proyecto de 410
000 paneles solares domsticos, divididos en
grupos de 50 000 hogares, como la actual
licitacin en Per:
Un enfoque multi-proyecto como un PoA es una

inversin promedio para el CME y se traducira
en beneficios para el LPP. Es razonable pensar
que agrupando suficientes proyectos para lograr
un punto de equilibrio en el ao 5 es factible en
la regin andina: la perspectiva de la oferta
peruana nos permite hacer esta suposicin.
Para asegurar una tendencia ms razonable,
probablemente sera necesario asegurar precios
ms altos para los bonos de carbono.
La necesidad de un enfoque innovador en la
valorizacin del acceso a los servicios
energticos
Existen dos estrategias principales que podran
ser implementadas para mejorar los supuestos
de ventas carbono:
2) Mejorar el precio final de los bonos de
carbono sociales.
3) Cambiar la naturaleza de la certificacin para
certificar y luego valorar mucho mejor los
impactos sociales que el mercado de
carbono hace. La peculiaridad de los
proyectos de acceso a la electricidad e
iluminacin no est a favor de la certificacin
del mercado de carbono: incluso si estos
proyectos tienen un alto impacto social, no
ahorran muchas emisiones de efecto
invernadero tanto como otras tecnologas
como las cocinas mejoradas.
Introduction and methodology

Energy access is central to fight poverty and achieve a sustainable development: None of the
Millennium Development Goals (MDGs) can be met without major improvement in the quality and
quantity of energy services in developing countries according to the United Nations. Energy is
necessary to cook, to get heat, electricity, lighting This study focuses only on electricity, for lighting
and other uses.
If the African and Asian continents concentrate the
majority of people without electricity access, there are still
many households without an efficient electricity and
lighting access in Latin America, and with specific
situations due to the geographical context and low
population densities. This study focuses on five Andean
countries: Colombia, Ecuador, Peru, Bolivia and Chile,
which accounts for 6.1 million rural households without
electricity access.
Inefficient electricity and lighting access not only limit
development, but also have an impact on environment
and climate change because of the associated high
greenhouse gas emissions. Replacing polluting traditional
electricity and lighting solutions by efficient ones reduce
thus greenhouses gas emissions: this reduction can be
valued by carbon credits, resulting in international funding
through carbon offsetting.
Methodology
The Rexel Foundation financed this study related to the feasibility of developing carbon
schemes for energy efficiency projects in the Andean area. This study was led by Microsol from June
2013 to January 2014 in order to analyze two main issues in 5 Andean countries:
1. Understand how to boost the access of disadvantaged people to efficient equipment that
use renewable energy, thanks to the voluntary carbon credit scheme.
2. Assess the relevance of the carbon mechanism to accelerate the development of
ecoefficient lighting solutions for disadvantaged people.
Rexel Foundation & Microsol study: Final report May 2014
28
Renewable energies for electricity:

Solar, Hydro, Wind, Biomass
Lighting:
For households, health centers,
schools, community buildings, etc.
Analysing the feasibility of carbon schemes for renewable energies and lighting implied to:
1. Know the past, existing and future projects with renewable energy and lighting for the
poorest.
To do so, we studied the needs of the population and the legal frame through a close countries
analysis, the available solutions through a review of the existing technologies, taking into account
both technical and social aspects of the project.
The analysis of potential will be presented in the sections 1 and 2.
2. Analyse the carbon market characteristics and
the available methodologies
To do so, we assessed the costs and benefits related to
the integration of projects in the carbon market,
highlighting eligible projects.
The carbon analysis will be presented in section
3.
3. Assess the feasibility of the creation of a
Program of Activities in the voluntary carbon
market and other options.
Key figures:
5 countries
175 interviewed people, from 97
institutions
Presentation of the study in 3 national
and international conferences (more
than 200 attendees in total)
10 projects visited
To do so, we will present our recommendations on the different options, highlighting the options
with the highest social and environmental impact.
The feasibility assessment will be presented in the last section (section 4).
29
The study was led with the following chronogram:

Carbon analysis
Mid-May to June
Analysis of potential
Feasibility assessment
July to November
December - January
Results presentation
End of January
30
The report will provide answers to the following questions, each block corresponding to one section:
31
I.
Electricity and lighting context in the Andean countries
In this section, we will introduce the electricity and lighting context in the Andean countries and
present the issue this study is dealing with.
We will focus on the current context for people not connected to the national grid, to understand:
(i)
the traditional solutions they are using to get lighting and electricity access,
(ii)
what are they using these solutions for,
(iii)
how many people, health centers and schools are lacking proper electricity or
lighting access
(iv)
and the impacts of this situation on development issues and living conditions.
32
I.1
Electricity and lighting needs

I.1.1
Traditional solutions for electricity and lighting access

I.1.1.1 Getting to know the area to understand people needs
To understand the needs of rural

communities in Latin America, it is
necessary to first introduce the way
they live and what are their main
activities.
The five countries of the study can be
divided into 3 different areas, relatively
homogeneous in cultural and climate
aspects: the Highlands (in brown), the
Coast (in beige: Pacific Coast) and the
Amazon rainforest (in green)5.
The Andean rural region is by far

the most populated of these 3
regions: it is estimated that about
65 % of Perus rural population
live in the Andean regions, while
about 20 % live in the Amazon and
15 % in the Coastal regions (2010,
World Bank).
Living in the highlands countryside:
The highlands in Peru, Ecuador, Bolivia and Chile are inhabited mostly by aymara and quechua
people (the Andean mountains are also present in Colombia, but with big cities and relatively few
rural areas).The highest peaks of the Andes reach 7000 meters above the sea level but people
generally live at an altitude of 2000 meters above the sea level to 5000 meters. The climate is
characterized by two seasons: a dry season from May to November approximately and a wet season
from December to April.
Details related to the specific situation of each country can be found in the Annex.The division into three
areas is quite simplistic but gives and overview of the extremely diverse natural ecosystems and cultural habits.
33
For those living in the countryside, Quechua and Aymara

people activities include:
-
Animals breeding (llamas, alpacas, chickens, pigs,

cows, donkeys, guinea pigs, goats although not
very common). Llamas and alpacas are to be found
only in the highest parts of the area (more than
3000 meters above the sea level).
Crops (potatoes, quinoa, corn, etc).
Handicrafts and wool (spinning and weaving).
People often have two houses. One is relatively close to

the city or to a populated center (centro poblado), the
other is in the country side, close to crops and pastures.
People usually sleep in the second house when they need
to pastor their animals, with a few or no facilities.
In Peru, one alpaca wool kilo can

be sold from 40 NS (10 euros) up
to 250 NS (65 euros) depending on
the wool quality. One alpaca
produces approximately one kilo
of wool per year. The wool is
colored naturally, with plants. It is
an important source of incomes
for the communities living in the
highest part on the Andes, where
growing vegetables is difficult.
Living in the Amazon rainforest countryside

Among the five countries of this study, only Chile does not
have an Amazon forest area. The Amazon rainforest
population can be divided into two main groups:
indigenous groups and the others (western people, latino,
Afro-descendants). One million Indians live in the Amazon
rainforest, divided into 400 tribes, each with its own
language, culture and territory 6. The climate is tropical, in
other words it is hot and humid with few variations during
the year.
In the Amazon rainforest countryside, human activities
include:
-
Animals breeding (cows, chicken, etc.)

Crops (vegetables and fruits like manioc, corn,
beans and bananas, cacao, coffee, palm trees).
Fishing
Handicrafts
In San Juan de Abiseo, Peru,

cultivating coca is very profitable:
peasants growing coca earn about
twice as much as they would
growing
cacao
or
coffee.
Nevertheless many coca farmers
were incarcerated in the late 90s,
fostering
legal
crops
development.
Many tribes have been in contact with outsiders for almost 500 years but others remain uncontacted. See the
work of the international NGO Survival: http://www.survivalinternational.org/about/amazontribes
34
Due to the difficulty to control this territory (large area with only a few roads), illegal activities such
as coca crops for coca paste production and mining are performed 7.
Living in the Coast countryside
Chile, Peru, Ecuador and Colombia cover all the Pacific coast
of South America8. Colombia is the only South American
country having access both to the Pacific and Atlantic Ocean.
Fishing lobsters and shrimps is a

common activity for fishermen of
Isla Fuerte, Colombia.
This area is very diverse, both at a human and climate point

of view. Ecuador and Colombian coast have a strong
influence of Afro descendants while this is not the case in
Peru and Chile. The climate varies from a desert coast in
Peru and part of Chile to tropical coast in Ecuador and
Colombia. As a consequence, human activities are very
different, even if fishing is a common activity all along the
Coast and in the islands.
I.1.1.2 Electricity and lighting for off-grid people: uses and traditional
solutions
The most widespread use of electricity for households are:
1. Lighting (for the house and to move outside).
2. Radio: for local news, music and communication (in
the most remote places, there is no cellphone signal.
Radio is then used as a communication mean9).
3. Charging cellphones.
In Bolivia, 70% of rural households

have a radio (national census, 2012)
and 30% have a TV and/or a phone.
When incomes increase and when there is electricity, people tend to buy TV and to a lesser extent,
devices such as blenders or electronic irons10. In tropical areas, fans and fridges are also common.
In Bolivia, coca production is legal in 12,000 hectares as a cultural patrimony, but forbidden for coca paste
production. (Article 384, Fourth Part, Title II, Chapter Seven, Nueva Constitucin Poltica del Estado,(p. 89)).
8 Bolivia lost its coast to Chile during the War of the Pacific, at the beginning of the XXth century.
9
During a field visit in Bolivia, the NGO Energtica made an announcement on the local radio to organize a
meeting with people from the community (the announcement was released 4 times for two euros).
10
A survey led by the World Bank in 2005 and 2006, interviewing almost 7000 rural households in several
Peruvian regions, found out that radios are by far the most common type of household electric appliance,
35
Traditional energy source for off-grid households:

To perform these activities, candles, kerosene and diesel lamps
(also called wick lamp) as well as non-rechargeable batteries
are the most frequent solutions. Small businesses sometimes
use more expensive solutions such as diesel generator or car
batteries.
Some rural households have solar panels as well, bought on
their own initiative or through a NGO or governmental project
(in Bolivia, 3% of rural households have a solar panel 11).
In some areas, kerosene is

forbidden for being an ingredient
for cocaine paste production (in
Peru, the use of kerosene is
forbidden since 2010). A kerosene
wick lamp or a candle provides
just 11 lumens (lm), compared
with 1,300 lm from a 100 W
incandescent light bulb (Practical
Action, 2010).
A wick lamp
Traditional sources of energy and their uses
Traditional source of energy
Uses
Users
Frequency
Candles
Lighting
Every off-grid households
Daily
Non-rechargeable batteries
Radio, flashlights
Daily
Kerosene and diesel wick lamps
Lighting
Majority off-grid households
Daily
Human and animal energy
Productive uses
Several times
a week
Car batteries
Productive uses
Small businesses
Several times
a week
Diesel generator
Productive
and others
Daily
or
uses Small businesses, health
several times
centers, community scale
a week
with 66 percent of electrified households owning one or more, followed by black-and-white televisions (37
percent of households), color televisions (33 percent), and electric irons (25 percent). Appliance ownership
variations by region are in line with regional income disparities (see MEIER Peter, TUNTIVATE Voravate,
BARNES Douglas and al,Peru: National Survey of Rural Household Energy Use - Special Report, Washington: The
World Bank Group, Energy Sector Management Assistance Program, 2010, pxix).
11
National Institute of Statistics, National Households Survey, 2012 (http://www.censosbolivia.bo/).
36
I.1.2
Needs for efficient lighting and electricity access in rural areas
Since this study focus on electricity and lighting access through renewable energies, the following
data will describe the national profiles in rural areas12. Grid extension or grid densification are indeed
the preferred option for urban areas 13.
COLOMBIA
ECUADOR
PERU
BOLIVIA
CHILE
There is no clear definition of

what access to electricity
means. For example, in
Colchane (Chile), close to the
Bolivian border, the city is
considered as electrified. But
people have only 3 hours a day
of light, preventing them from
developing productive activities
during the day.
The opposite map shows that

Bolivia has by far the lowest
rural electricity rate.
Nonetheless, in terms of needs,

Peru has by far the highest
number of rural people without
electricity access, followed by
Bolivia and closely by Colombia.
Chile almost completed its rural
electrification process.
Percentage of households and number of people without electricity access
12
The statistics dealing with rural electrification come from CEPAL Stats
(http://interwp.cepal.org/sisgen/ConsultaIntegrada.asp?idIndicador=260&idioma=e), except for
(National Institute of Statistics, National Households Survey, 2012 (http://www.censosbolivia.bo/)).
13
See National electrification maps: V.2

households lacking electricity access
(2011)
Bolivia
Regional electrification maps: comparison of the number of rural
37
The comparison of rural households between the 5 countries confirms the following ranking in term
of electricity and lighting14needs15:
(It would have been interesting to know as well the number of community buildings and
health centers lacking electricity and lighting, but this data was not available).
Needs ranking (starting from the neediest country, in volume):
1.
2.
3.
4.
5.
Peru
Bolivia
Colombia
Ecuador
Chile
Beyond number and statistics, the following paragraph will present the impacts of the lack of
efficient electricity and lighting access.
14
The number of people without efficient electricity access is approximately the same as the number of people
without efficient lighting access, since lighting stand-alone devices are not widespread is the region.
15
The difference of households numbers between Peru and Bolivia is lesser than the difference in the number
of rural people, because households average size is higher in Peru (we considered the average size of rural
households from the second poorest quintile). Statistics concerning the number of schools without electricity
access originate from the Organization of Ibero-American State (OEI) and its program of electrification Lights
to Lear (Luces para Aprender, see http://lucesparaaprender.org/web/). The number of schools without
electricity is surprisingly low for Bolivia, especially considering that 20,000 public establishments (health posts,
schools, etc.) are not appropriately supplied with power according to the EnDev project impact evaluation
(2005-2010, see http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38280318).
38
I.2 What is at stake?

As the United Nations Organization states, energy
is central to achieve a sustainable development:
None of the Millennium Development Goals
(MDGs) can be met without major improvement in
the quality and quantity of energy services in
developing countries16.
With the exception of Southern Chile,

daylight runs approximately from 6am until
6pm all year long in the Andean countries.
Without modern lighting, the possibilities to
develop economical, educational or social
activities after 6pm are then reduced.
Efficient electricity and lighting access are critical

to improve education, health, security and
economic situation at households and community level. Environment is also impacted at an
international level through increased greenhouse gas emission and impacts on climate change.
Electricity access may entail the development of services such as lighting, cooling, information and
communication, or economic activities, providing new services, reducing the costs of these services
(compared to no-efficient energy sources) or improving the reliability of electricity access.
16
See
http://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainableenergy.html
* Electricity can foster other services such as cooking or heating: nevertheless, it is uncommon in rural
communities of Andean countries to use renewable electricity for such services. That is why these aspects will
not be deepened in this report.
39
The impacts of electricity access are diverse and address 5 pillars of sustainable development
(indirect impacts are more numerous but will not be reported in details in this report):
ELECTRICITY ACCESS & HEALTH:
information and communication
lighting,
cooling,
Diseases diminution:
Indoor pollution diminution: decrease of
pulmonary and eyes infections17.
Sufficient lighting intensity: decrease of
vision loss. The GIZ recommends300
lumens18as a minimum illumination level
per household (Bazilian et al., 2010). This
can be achieved neither by candles nor
kerosene wick lamps.
Improved lighting reduces hunger by increasing
the productive time that people can work and
by reducing the money spent on effective
lighting (Practical Action, 2010).
Improvement of health services:
Medical attention improvement: hot water,
fridges (for vaccines conservation for example),
etc.
Extended working hours of health centers,
allowing better services for maternal health,
children, etc.
Isla Fuertes health center, is

managed by a doctor, who spends 3
weeks in the island and one week in
the closest city of Cartagena per
month. A total of 6 people are
working in the health center,
including one dentist, which would
not have been possible before without
electricity access.
Strengthening rural doctors motivation while

improving their living conditions.
17
According to Practical Action (see PRACTICAL ACTION, Poor Peoples Energy Outlook 2010. Rugby, UK, 2010
(p3)), there are few studies on the levels of indoor air pollution from kerosene lamps. A preliminary laboratory
study in Guatemala (Schare and Smith, 1995) indicates an average particle emission of 540 mg/hour for wick
lamps and 300 mg/hour for enclosed lamps. Compared to biomass stove emissions (220 g/hour), this emission
rate is relatively low, but the most polluting lamps emit levels that compete with those from the cleaner types
of biomass stoves.
18
A lumen (lm) is a measure of light energy radiated by a light source.
40
ELECTRICITY ACCESS
&
EDUCATION:
lighting,
information and communication
Improvement of studying conditions:
Extend learning hours in the evening:
children are allowed to study at night.
Children spend less time in incomegenerating activities (increase of
productivity thanks to electricity) and are
free to attend school.
Improvement of educational services:
The school of Pisigachoque in Chile has

had a lot of electronic devices (TV,
computer, printer, DVD reader, etc.) for
several
months,
thanks
to
a
governmental project. But these
devices were not used because of the
lack of electricity. Electricity access
allows as well the teacher, who is living
in the school, to prepare the lesson
during the week (she does need to go
back to the city, at 4 hours by car, to
photocopy the exercises).
Teaching
improvement:
use
of
technological tools, such as computers,
videos, internet
Strengthening rural teachers motivation
while improving their living conditions.
ELECTRICITY ACCESS & SECURITY: lighting

Reduction of fireworks risks due to
candles and oil lamps.
Reduction of injury from unsafe lighting.
In Mizque, Bolivia, people use to

throw used batteries near their
houses, in their crops, near animals or
wells. They said they were unaware of
contamination risks.
Public lighting: increase safety in the

streets.
ELECTRICITY ACCESS AND ENVIRONMENT

Diminution of greenhouse gas emissions.
Diminution of soil contamination: with the
lack of a proper waste management and lack of awareness, people tend to throw garbage
such as used batteries in the fields, contaminating water resources and the soil. Replacing
41
batteries by rechargeable ones for flashlights for example will allow a reduction of
contamination.
ELECTRICITY ACCESS & ECONOMY:

communication, income generating
lighting,
cooling,
information
and
The link between poverty and access to modern energy is clear, even if the direction of causality is
not well established. In addition, the path to go from electricity access to income generating is not
guaranteed: other barriers beyond energy access must also be addressed, be they capacity gaps, lack of
technical knowledge and finance, or lack of access to markets19.
The steps from energy supply infrastructure to poverty reduction
20
Creation of new earning opportunities:

Possibility to sell frozen products through fridges, such as ice-creams, cold drinks
Possibility to develop services such as internet cafs, photocopies.
19
PRACTICAL ACTION, Poor Peoples Energy Outlook 2010.Rugby, UK, 2010 (p32).
20
KOOIJMAN-VAN DJIK A.L., The Power to Produce: The role of energy in Poverty Reduction through Small-Scale
Enterprises in the Indian Himalayas. University of Twente, Netherlands, 2008 (read).
42
Possibility to develop night activities for

entertainments (music, billiard)
Improvement of existing activities:

Improvement of productive efficiency.
Later opening of restaurants and shops.
In Isla Fuerte, Colombia, The

collection center allows fishermen to
freeze fishes, lobsters and other
seafood products and to sell them
when prices are higher. Before getting
electricity and fridges, they were
obliged to sell them the same day,
often with very low prices.
Less waste of agricultural and fishery

products.
Energy saving:
Efficient electricity and lighting is far
cheaper than traditional solutions (see case
study below).
In addition, electricity access can

promote gender equality and
empower
women:
without
electricity, time is lost in manual
tasks (many manual tasks are
women
responsibility)
while
productive activities are limited.
In Sibina Sallma, Peru, the main

income generating activity is spinning
alpaca wool. This activity is handmade
by women, with a low productivity.
Thanks to electricity access, the
women will be able to use electronic
devices to spin the wood, being able to
generate more income or to get time
for other activities.
Case study
Rural households tend to use much more energy than urban households, but with very limited
energy efficiency.
A comparison between urban and rural Bolivian households demonstrates strong inequalities among
energy consumption21:
21
FERNANDEZ, RIOZ, Energa y Desarrollo Sustentable en ALAC. Estudio de Caso de Bolivia, OLADE, CEPAL, GTZ,
1997, mentionned by FERNANDEZ Miguel and al, Cambio Climtico, Agua y Energa en Bolivia, Onudi and
Energtica, 2012 (p35).
43
Households energetic consumption

FERNANDEZ, RIOZ, Energia y Desarrollo Sustentable en ALAC. Estudio de Caso de Bolivia, OLADE,
CEPAL, GTZ, 1997.
BEP/Year
6
5
Electricity
GLP
Diesel/kerosene
Biomass
1
0
Energetic
Total BEP/year
Energetic
Total BEP/year
consumption: (useful energy): consumption: (useful energy):
Urban
Urban
Rural
Rural
While 87% of rural households energy consumption is covered by GLP and electricity, rural
households needs are covered by biomass (93%) and diesel/kerosene (4%).
Urban families electricity consumption is 86 higher than rural families consumption.
Whereas the amount of energy needed by rural households is 1.6 times higher than urban
households, a rural household has 3 times less useful energy.
***
The next section will study the relevance of renewable energy and energy efficiency to addressing
the electricity and lighting issue, but the first part of this report allows us to conclude as follows.
CONCLUSION OF PART I (Electricity & Lighting issue)

6,1 million rural people are still lacking efficient electricity and lighting access in the 5 Andean
countries, representing 1,5 million rural households. It is an important limitation to fighting
poverty.
44
II.
Efficient electricity and lighting solutions
In this section, we will look at the existing solutions to address the issue of electricity and lighting
access in the five Andean countries of the study.
We will focus on:

(i)
the interests for efficient decentralized energy solutions and especially, for
renewable energy,
(ii)
an overview of the available renewable technologies in the region and the

distribution systems they can be used with,
(iii)
to finally make some observations on what makes a successful project, with the
central thematic of ownership.
45
II.1
Upsides of efficient decentralized solutions

II.1.1 Grid solutions VS decentralized solutions
Even if grid extension and grid densification are the

preferred option for electrification, they are sometimes
not suitable in rural areas.The easiest areas to electrify
through grid extension have already been electrified: this
means that the last households and communities to be
electrified will be far most costly and difficult to reach,
especially through grid extension22.
The decision to implement decentralized electricity
solutions will depend mainly on the costs and on legal
aspects :
Legal aspects
Is it legally possible to extend the

grid?
The 5 countries cover a territory

of 4.5 million km2 (9 times bigger
than France) and house 122
million people (twice the French
population). As a consequence,
houses are very isolated from
each other.
Costs analysis, in comparison with grid extension
Is the building close to the grid?
In natural reserves or cultural sites,

grid extension might be forbidden.
The closer is the house to the

grid, the cheaper it is to extend
the grid.
The area near the Inca citadel

of Choquequirao (near Cusco,
Peru) is culturally protected,
preventing grid extension.
Isla Fuerte (Colombia) is one

hour by boat from the
continental cities, preventing
grid extension.
Are the buildings close to each

others?
Buildings concentration will lower
grid extensions costs.
In the community of Sibina

Sallma (Peru), the houses are
very spread out to allow
alpacas breeding.
22
In Peru, almost one quarter of households without electricity are in villages that are electrified (MEIER
Peter, TUNTIVATE Voravate, BARNES Douglas and al,Peru: National Survey of Rural Household Energy Use Special Report, Washington: The World Bank Group, Energy Sector Management Assistance Program, 2010,
pxx).
46
In addition to these considerations, the case of lighting is particular: apart from lighting households,
farmers need to have a moveable lighting solution to be able to work in the fields outside of the
daylight hours.
II.1.2 The relevance of decentralized solutions in Andean countries
The following table gives an overview of off-grid solutions relevance taking into account 4 criteria:
1. Population density: the population density is considered at a national level but this indicator
needs to be interpreted cautiously since it can hide different realities (for example, a
concentration of population in the cities and very few rural people, or small cities and many
people living in the countryside).
2. House dispersion: this indicator gives an indication of the size of communities, to know if
houses are close to each other (how many households are made of off-grid communities?).
In the absence of national indicators, this table summarizes estimations based on interviews
with rural electrification experts.
3. Access difficulty is a summary of both the distance from the grid and the availability of roads
to reach the communities. In the absence of national indicators, this table summarizes
estimations based on interviews with rural electrification experts.
4. Maximum allowed cost for grid extension: this is the maximum amount that national
programs are willing to pay pay for grid-extension to electrify one household (based on
interviews with government representatives). This amount allows to compare the cost of offgrid solutions to the amount that the government is willing to pay for electrification through
grid extension.
47
Conclusions on the relevance of off-grid solutions for nonelectrified buildings:

1. Andean countries have a very low population
density compared to the rest of the world,
reducing the relevance of the extension of national
grid. Nevertheless, the situation is far from being
homogeneous, with for example Bolivia having less
than 10 inhabitants/km2 and Ecuador, more than
60 inhabitants/km2.
In Bolivia, the Ministry of Energy

estimated that 10% of rural
households should be electrified
through renewable energy (Plan de
Universalizacin, 2010, p25).
2. House dispersion is high in the 5 countries since the communities needing electrification are
usually the smallest one. Farming activities explain the extreme dispersion of houses.
3. Non-electrified communities are hard to access in all countries. Chile has relatively less
difficulties thanks to an extensive roads networks and the absence of an Amazonian area. On
the opposite side is Ecuador: the electrification rate in the Andean departments is high,
meaning that almost all the non-electrified communities are located in the jungle, with very
few roads. Many communities can be reached only after several hours of boat, or small
plane, or walking.
4. Government willingness to pay for grid extension is very different in the 5 countries. This can
be justified by two factors: national wealth and energy consumption (even if these two
indicators are linked as well). Indeed, Chile, for being the wealthiest country in the area, can
dedicate more resources for rural electrification. In addition, Chilean people have highest
energy consumption, easier to attend with grid solutions.
48
The costs of grid extension should be compared with the costs of decentralized solutions (renewable
energy or not), taking into account as well the feasibility or these decentralized solutions. These
aspectsare deepened in the next section.
But this first section enables us to draw the following conclusion:
CONCLUSION OF II-1 (Decentralized solutions)

Rural electrification through decentralized energy production is thus a relevant option,
considering the difficulties for grid extension (feasibility and costs).
49
II.2
Renewable energy and lighting solutions
This section summarizes the available solutions for rural electrification and lighting through
renewable energy. Each technology is described with more details in the Annexes.
II.2.1 Solar energy for electricity generation
A solar panel is a set of solar photovoltaic modules electrically

connected and mounted on a supporting structure.
Solar modules use light energy (photons, not thermal energy as
other systems do) from the sun to generate electricity through the
photovoltaic effect. A photovoltaic cell is made of several layers of
semiconductor material. By far, the most prevalent bulk material for
solar cells is crystalline silicon (abbreviated as a group as c-Si), also
known as "solar grade silicon".
Solar potential in the Andean countries:

Except southern Chile, Andean countries have very
high solar resources23. The Peruvian coast and a large
part of Ecuador have less solar potential, as well as the
eastern part of Bolivia. Generally speaking, there is
more solar potential in the highlands than in the
rainforest.
The cool temperatures in the highlands positively
affect the efficiency of the solar panels.
Costs:
The costs of Solar Home Systems in the Andean Regions have an order of magnitude of 600$-1500$,
for a peak power from 30 W to 100 W 24.
More details about this technology can be found in the Annex: see II.1
Solar panels.
23
In Bolivia for example, it is estimated that solar energy would be a suitable solution for 97% of the territory
(FERNANDEZ Miguel and al, Cambio Climtico, Agua y Energa en Bolivia, Onudi and Energtica, 2012 (p19).
24
MINEM,PROYECTO PER/98/G31: Electrificacin rural a base de energa fotovoltaica en el Per, GEF and UNDP,
August 2006 (read).
50
II.2.2 Wind turbines

Microwindgenerators and Miniwindgenerators (MWG)
convert the kinetic energy of the wind into rotational
energy which is then converted into electrical energy
through a dynamo. The energy produced is then stored in a
battery. The nominal power25 of MWGs is generally
between 50 W and 10 kW depending on the size of the
device.
Wind potential in the Andean countries
A preliminary study of the Wind Power Density (WPD) is
required in order to know the wind potential, like wind speed, wind directions, monthly variations
(WPD is a much more sensitive parameter than solar radiation for instance). The study should be
done at a local level and last one year, which can be costly.
Costs26:
The costs of Micro Wind Turbines in the Andean Regions have an order of magnitude of 500$-4000$,
for a nominal power from 100 W to 500 W27 (average prices of wind turbines including installation,
tower and battery).
More details about this technology can be found in
the Annex: seeII.2
Wind turbines.
II.2.3 Hydro energy
Micro
hydro
plants
provide
hydroelectric
power using the natural flow of water in off grid
areas. Although details of a microhydro plant are
site-specific, in a typical hydro system water is
diverted from a stream, river, or perhaps a waterfall
through what is called an intake. The intake then
25
Nominal power: maximum power that can be delivered in optimal conditions.
26
TAKAHASHI Masaki, Technical and Economic Assessment of Off-grid, Mini-grid and Grid Electrification
Technologies, World Bankand ESMAP, Washington, DC 121/07 December 2007.
27
MINEM,PROYECTO PER/98/G31: Electrificacin rural a base de energa fotovoltaica en el Per, GEF and UNDP,
August 2006 (read).
51
tunnels water through a pipeline (penstock) to the powerhouse building containing a turbine.
At the turbine, a controlling valve is installed to regulate the flow and the speed of the turbine. The
turbine converts the flow and pressure of the water to mechanical energy; the water emerging from
the turbine returns to the natural watercourse along a tailrace channel. The turbine turns
a generator, which is then connected to electrical loads.
There are at least two other technologies that can be used to exploit hydro power and that this
document doesnt deal with in depth because they are not widespread enough (see Annex).
Hydro potential in the Andean countries:
Hydro resource evaluation is a particularly complicated process that consists in measuring head and
flow.
Head is the pressure measurement of falling water expressed as a function of the difference
of altitude between the two ends of the pipeline.
Flow is the quantity of water per time unit that goes through the system.
As for wind potential, the study should be done at a local level and last one year, which can be
costly.Micro hydro systems have an impact on the environment, it is therefore important to verify
that the installation does not affect the community nor the local economy.It is also necessary to
make sure that water is available all year long and that the beneficiaries will not need it for other
purposes (irrigation for example).
Costs:
The capital cost of mini-hydro projects is very site-specific and can range betweenUS$1,400/kW and
US$2,600/kW, depending as well on the size of the plant 28.
Micro hydro centrals.
II.2.4 Biodigestion for electricity generation

Biomass can be converted into electricity through two processes: biodigestion and biomass steam
turbines. This last technology will not be described in this report for not being widespread for rural
electrification projects in Andean countries.
28
Technologies, World Bank and ESMAP, Washington, DC 121/07 December 2007 (p25).
52
Biodigesters convert organic waste

into biogas and liquid fertilizer. The
technology is entirely based on the
chemical reaction called anaerobic
methanisation. Indeed, when organic
waste is in sufficient amount and is
isolated
from
oxygen,
the
methanisation process gets started.
This reaction is really common in the
nature. For example it occurs in the
stomach of animals and is the cause of
flatulencies29.
The biodigesters allow to:
Example: model used in Brazil, integrating livestock

farming, farming and renewable energy for households .
Facilitate control of pollution (livestock excreta)

Produce biogas: used to cook or to produce electricity
Produce biofertilizer (boil)
Whereas using the gas for direct combustion in household stoves or gas lamps is common, producing
electricity from biogas is still relatively rare in
most developing countries.
There are several models of biodigesters: in Latin
America, the most frequent one in the
Taiwanese model (Continuous-flow flexible tube
biodigester).
Biodigesters potential in the Andean countries for electricity generation:
Biodigesters can theoretically work in every place as long as there is enough organic waste to feed
it. Even if it works well in the jungle thanks to high temperatures, it is more complicated in the
highlands because it takes more time before getting biogas (1 month in the rainforests but several
months in the highlands). In addition, gas always contains a small amount of hydrogen sulfide which
damages the generator if not properly treated, but proper treatment is complicated and expensive.
Costs:
Biogas electric plants can be cost effective if power output is more than 5kW (10 kW according to GIZ
study of feasibility in developing countries), requiring large quantities of biomass (typically agro-
29
http://www.human-energies.com/Human-Energies/blog/wp-content/uploads/2012/01/BiodigesterBolivia.pdf
53
industrial wastes of a large farm) for a 30m3 biodigester. The total cost of the generator (with filter)
and a 30m3 biodigester reach an order of magnitude of US$ 3 000.
Biodigesters uses: main issues
So far, only pilot projects have been led in the Andean region, almost exclusively to generate gas for
cooking and with mixed results. Only one project to generate electricity with a biodigester has been
reported, in the Peruvian jungle near Tarapoto, for a whole farming community (project led by SNV
and Practical Action).
This report studies only the biodigester technology for electricity production at household and
community level: the previous remarks might not be relevant for other uses of biodigesters.
Biodigesters.
II.2.5 Lighting solutions
All previous solutions provide electricity for lighting, so this section

deals only with stand-alone lighting systems. They can be divided
into two groups: pico-technologies and micro-kits.
Pico lighting technologies are the smallest scale technologies
providing light; they are also referred to as pre-electrification
solutions. The three main technologies of this kind are:
-
Solar lamps
Gravity lights
Pedal powered lights
In the Andean countries, this study shows that only solar lamps are
used. A solar lamp is a portable light fixture composed of a LED
lamp, a photovoltaic solar panel (0.7 to 5 W at most), and
a rechargeable battery. Most devices have lamp, solar panel and
battery integrated in one unit. Solar lamps recharge during the day
and provide light in the nighttime, as well as loading cellphones.
Micro kits are small packages generally composed of:
-
Small solar panel (30 Wp at most)
2-5 rechargeable LED lamps

Cellular phone charger
Cables (in order to connect all devices)
Soltys' Micro Kit (5 W panel, 4 lights

and a cellphone charger)
54
Other low power devices such as small radios can be connected too.
Lighting solutions potential in the Andean countries:
This type of products can be used in all the Andean countries thanks to high solar potential in the
region. They can be used as pre-electrification solutions and/or as moveable lighting solutions, in
replacement of flashlights.
Costs:
The costs of pico solutions in the Andean Regions have an order of magnitude of US$ 5 US$ 80$
depending of the lamp characteristics (uses, power, brand) and US $ 100 US $ 170 for micro kits.
Lighting solutions.
II.2.6 The distribution model
II.2.6.1 Energy Hubs

Energy hubs are small facilities equipped with renewable
energy generators such as solar panels, wind turbines, hydro
turbines, etc. Each Hub has a large number of rechargeable
batteries and sometimes lamps and lanterns in store. Most
of the time, the batteries are used to plug-in radios, charge
cell-phones, plug lamps. Depending on the management
model, the user can return the empty battery and exchange
it for a recharged onefor a small charging fee or for free.
Maintenance and repair are generally assured with no
additional costs by trained personnel in the Hub.
There are two kinds of Energy Hubs:
-
The Grupo PUCP installed 11 river

turbines in Cuzco region (Peru).
Each of them charges 12V
batteries for approximately 48
families, providing them with
lighting. Batteries can give light to
two lamps during 2 to 3 hours per
day, during one week. Afterwards,
the family needs to reload the
battery with the river turbine,
bringing them to the charging
station.
The hub is only used to recharge large batteries

(once a week typically, battery capacity being
around 100 Ah) and each battery is then connected
to a households domestic grid powering lights, TVs,
water heaters and other devices. In that case it
would be considered an electrification solution.
The hub directly recharges lanterns, cellphones,
small batteries (AAA type) and other rechargeable
devices. In that case it is a pre-electrification
solution.
55
Development
Energy Hubs are quite recent and only a few were developed worldwide so far, especially in Africa
(Osram, Station Energy, Egg-Energy). First results are encouraging, with high acceptance by local
users and stakeholders.
Energy Hubs have several advantages:
They create a social core where local actors can meet.
Maintenance and recycling is much easier for batteries.
Offering other services such as clean water, refrigerators, printers and internet is also
possible.
When the service has to be paid by users, prices are generally affordable for local people and
business model can be sustainable.
The model of energy hubs is not common in South America: only one energy hub has been
reported (in Peru, by the investigation center of Grupo PUCP see info box).
II.2.6.2 Home Systems
The Home System is the most popular rural electrification solution. Every household has its own
renewable energy generator (solar panel, wind turbine, biodigester or micro hydro).
Home System technical diagram
56
II.2.6.3 Mini-grid
A mini-grid can be used to connect several houses to a single generator electrical plant (hydro, wind
turbine, biodigester or solar panels). This electrification solution is often used with microhydro power
plants and wind turbine.
The total cost of a mini-grid project is the sum of:
-
Generation costs (see the previous section describing each technology).

Distribution costs (depending on the power that is to be transmitted through the mini-grid,
the voltage of the lines, the distance between the generator and the point of usage of the
electricity, distribution costs and power losses vary).
II.2.6.4 Cost comparison between mini-grid and home systems
As most technologies allow making economies of scale, generation costs generally go down when a
minigrid is used because a single big generator is used instead of several small generators (one for
each home). But at the same time distribution costs increase considerably (if home systems are used
there arent any distribution costs), so costs comparison will depend on customers concentration,
which might be a critical criteria in Latin American countries.
The energy prices of different technologies are reported in the following30 diagram:
Mini-grid and off-grid costs comparison, estimation for 2015

(TAKAHASHI Masaki, 2007, p255-265)
70
60
USc/kWh
50
40
30
20
10
0
Solar PV (300 Solar PV (25 Wind (300 W) - Wind (100 kW) Pico-hydro (300 Micro-hydro
W) - off-grid kW) - mini-grid
off-grid
- mini-grid
W) - off-grid (100kW) - minigrid
30
Own production, based on TAKAHASHI Masaki, Technical and Economic Assessment of Off-grid, Mini-grid and
Grid Electrification Technologies, World Bankand ESMAP, Washington, DC 121/07 December 2007 (p255-265).
57
At this stage the most common Home Systems are the solar ones. This is due to the fact that the
conditions of implantation of other solutions are much more restrictive although solar panels are
more expensive than the other solutions.
II.2.7 Conclusions on technological options
The following table gives an overview of renewable energy solutions relevance taking into account 3
criteria:
1. Cost: comparison of costs for the different technologies (individual systems for solar
solutions and mini-grid for the others technologies).
2. Possibility to implement the solution in different region: this indicator summarizes the two
following indicators, that is to say the availability of natural resources and the necessity (or
not) to have houses close to each other.
3. User-friendliness gives a general idea of the social and technical challenges to use the
technology.
58
59
***
After more than one decade of renewable energy projects for rural electrification, technologies are
well known and technical failures are relatively limited. The way the project is implemented,
maintained and managed are the greatest challenges for renewable energy projects and must ensure
a sense of ownership: these issues are tackled in the next section. Before that, we can conclude on
this section, as follows.
CONCLUSION OF II-2 (Energy & Lighting through renewables)
Renewable energies are suitable for rural electrification in all Andean countries: for every climate
and houses dispersion, at least one technology can be used. In addition, they might be cheaper
than grid extension for isolated houses.
Biodigesters for electricity are not suitable for families (too expensive) and there are very few
biodigesters at a community level.
When houses are close to each others, hydro is the cheapest technology.
Windturbine technology is not used a lot because of lack of reliable wind maps.
Solar works almost in every region Andean countries and is by far the most frequent solution for
off-grid rural electrification.
In Latin America, only solar lanterns are currently used as lighting stand-alone devices.
60
II.3
Creating a successful access-to-energy project
One of the greatest challenges for access-to-energy projects is to create a sense of ownership for all
the stakeholders, primarily for end users.
Ownership can be defined as a feeling of appropriation, leading to an attitude of accepting
responsibility for something. In energy projects, the sense of ownership can be fostered by involving
stakeholders in the entire project steps:
(i)
(ii)
(iii)
(iv)
(v)
The project design

The management system, defined during the project design and summarizing the
management of the three following steps:
The project implementation,
The project operation and
The long-term sustainability
Ownership process
61
II.3.1 Towards ownership: design the project with stakeholders
The project design should allow:

(i)
(ii)
(iii)
Successful needs identification

Stakeholders involvement
Definition of the management system (see the specific section)
II.3.1.1 Identification of the needs
The issue:
Successful identification of populations needs is the first criterion to be taken into account before
project implementation. Even if this criterion seems quite basic, it might be not as easy as it seems:
there are many examples in development projects of installations not being used by the beneficiaries
or being sold after a while, because they did not respond to
a real need, or because they did not respond to this need in
a suitable way.
Two main issues can appear during the identification needs

step:
1. The project is designed by individuals from outside
the community, without the involvement of endusers, leading to failures in needs identification or
solutions proposal. Regarding the needs, it is
important to take into account the perceived needs
of end-users, which might not match the perceived
needs of the project leaders. For example, it was
reported that some communities in Colombia do
not want electricity for their households,
considering it was enough to have electricity only in
Irrigation needs VS
lighting needs
One of the river turbines in
Canas is not working all year
long: during the 2013 dry
season, the community preferred
to use water for irrigation
instead of battery charging.
62
collective buildings such as schools and health

centers.
2. The users did not express their real needs. This
may happen for many reasons: for example, some
communities tend to accept every gift coming
from outside, even if they are not relevant for
them. Language can be tricky as well: in rural
areas, some people might not speak Spanish or
more often, might not feel confident while
speaking Spanish. A native speaker will then have
more chances to get people expressing their
needs.
Listening
realities
to
unspoken
In
Sicuani
(Peru),
the
community started to really
express their needs only after
that the PA NGO team started to
stay overnight in families
houses. At first, people did not
say that they were afraid of
solar panels (they feared they
would attract thunderbolts).
The solution:
A participative diagnosis of the community situation is
thus necessary. This diagnosis can take many forms:
meeting with community leaders and with families, visits
to the households, etc. During the community meeting,
some people might be afraid of expressing their own
opinion that is why it is recommended adding to the
general meeting a more personal one.
Some communities might as well be reluctant to a new
project because of negative past experiences: a long-term
work with the community to gain its trust will then be
necessary.
II.3.1.2 Stakeholders involvement:

consultation and implication
The community of La Ye
(Ecuador)
was
electrified
through a solar mini-grid in
2006 by a NGO. In 2013, the
local
electricity
company
connected the community to the
national grid, resulting in the
necessity to transfer the solar
panels to another community.
The issue:
Previous consultation and implication of local actors is
necessary to make sure that the project is in-line with
these other institutes strategy, to benefit from the
stakeholders past experiences and advices, and to remove
legal barriers.One of the key issues it to make sure that
the project will not be replicated in the same community
63
by another actor. For example, before starting an electricity project, it would be necessary to make
sure that the local government (or other relevant actors) is not planning a grid extension project in
the same community in a near future.
The solution:
Meetings with stakeholders should be organized, if possible with several of them. Stakeholders can
be very diverse and cover different level of decisions:
-
At a community level: community leaders, churches, schools, women association, etc. These
actors need to take part in the planning and decision-making process.
At a local level: local city hall, department and regions offices, local electrification company,
etc. These actors must be involved since they might have parallel projects.
At a national level: Ministries (relevant Ministries include: Energy, Education, Household,

Health), International Cooperation Agencies, International Funding Agencies (World Bank,
InterAmerican Development Bank, etc.). These actors might have parallel projects or be
designing national plans for rural electrification.
Consultations will then ensure a sense of ownership and accountability by the different stakeholders.
II.3.2 Towards ownership: management model
Literature and many interviewees stress the importance of the management model: failed
renewable energy projects are largely due to the management and mode of implementation rather
than the technology per se31.
31
KRISHNASWAMY Srinivas, Shifting of Goal Posts Rural Electrification in India: A Progress Report, Christian Aid
and Vasudha Foundation, 2010 (p60).
64
The management model should

define who is responsible for
the installations, service and
maintenance, and how the
costs are covered. It should be
discussed with stakeholders
during the project design and
cannot be successful without a
strong commitment of endusers and other relevant structures.
Many management models do exist, ranging from totally

private initiatives(the user buy a solar panel and cover
service and maintenance costs), to philanthropic models
where the beneficiaries do not cover any costs,
cooperative
management
systems,
electricity
committees, etc. The management model can be based
on existing community structures, such as community
committees, which are very common in Andean countries
(junta communal)32.
In La Ye community (Ecuador),
every households paid a monthly
fee for the systems. One
community member was in
charge of collecting the fees and
another
one,
of
basic
maintenance, thanks to the fees.
These two community members
were rewarded for their work
not paying the monthly fees.
Since (i) users are usually unable to cover the whole costs
(it is too high compared to their low capacity payment)
and (ii) private companies are often reluctant to
implement rural electrification projects by their own due
to low economic profitability, (iii) the State often covers
the gap between low economic profitability and high
social impacts.
That is why the most common management model in the Andean country combines subsidies from
the State to cover the implantation costs (at least a part) and to contribute to maintenance (costs
and technical aspects), while users pay a subsidized fare for the electricity service. The operational
activities are often delegated to NGOs or private companies with local activities.
32
Although the duration of the study did not allow making deep sociological investigations, many NGOs
workers reported that it is easier to work with Andean communities than with Amazonian communities.
Andean communities are said to be more organized and more willing to fulfill their commitments.
65
II.3.3 Towards ownership: project implementation
The project implementation should allow:

(i)
(ii)
Users participation
Stakeholders participation
II.3.3.1 Participation of the users
The issue:
Energy services are usually far-beyond the payment

capacity of rural communities (except for small standalone devices and communities living in specific places
such as touristic areas33), that is why projects are being
implemented with subsidies or with donations.
Nevertheless, it is now very common to ask end-users for
participation: above from costs reduction, this is a way to
ensure the ownership of the installations (people tend to
take care more of paying services than free ones) and to
make sure that the project is addressing a real need.
In Pucara (Peru), the PA NGO

built
a
hydro
turbine.
Beneficiaries didnt have to
participate in the project
financing but had to take part
in
the
construction
and
elaboration of the hydro plant.
Hydro plant building took place
during the off-season in order to
disturb as little as possible the
33
The Titicaca Lake for example is one of the most touristic areas in Peru. Daily visits of tourists allowed Taquile
islanders to increase their income and numerous are those who bought their own solar panels and/or solar
lanterns, without any subsidy.
66
The solution:
Users participation can be financial or not. In the case of
market-based projects, the user covers the whole costs of
the project or at least a substantial part of it. In NGOs or
government projects, installations are generally partly
subsided. If the project generates savings for end-users,
which is a usual consequence (end-users will for example
buy less candles once they have renewable lighting), endusers payment capacity for the project is at least equal to
their savings.
In Bolivia, some municipalities

contributed to the GPOBA solar
project, while other did not: as a
consequence: while in Mizque,
end-users paid only 50$ for a
small solar panels, end-users in
Santiago de Machaca paid 290$.
If it not possible for end-users to contribute economically

to the project, it is sometimes possible to ask them to
take part in the project implementation. For example, for
hydro projects, a lot of work force is necessary to dig the
pipeline and might require as well unskilled workforce,
which can performed by end-users without long-term
training.
II.3.3.2 Participation of the stakeholders
The issue:
As for end-users, stakeholders participation proves that there is a good acceptance of the project
and that they accept responsibility for the project. It is a way to ensure sustainability in the long
term.
The solution:
At a locallevel, institutions such as local city all,
department and regions offices, local electrification
company, etc. might contribute with funding, human
resources or material (for example: lend a truck,
computers, etc.). At a national and international level,
stakeholders might be able to financially support the
project, help removing legal barriers if necessary, lend
materials, etc.
In Canas (Peru), one of the

municipalities lent a car to
transport material for the hydro
project.
67
II.3.4 Towards ownership: project operation

The project operation should allow:
(i)
Users training
(ii)
Local technicians training
II.3.4.1 Training of users

The issue:
Even if renewable energy installations are usually relatively
simple to use, training is necessary to ensure a proper use
of installations. Indeed, the most common failures of
installations are caused by misuses. With solar projects for
example, the component which is more likely to be
damaged is the battery, because of:
-
Lack of distillated water

Overuse of the battery
Use of the battery for cars
These problems can be avoided through training.

The solution:
The fields visits allow making some observations regarding
users training, which should be:
-
Understandable and adapted: people living in

remote areas have often a lower education level,
due to difficulties to attend school34: the training
should then be adapted for people without any
literacy and sometimes non-Spanish speakers. The
The Eurosolar project electrified

health centers and schools in
several Andean countries. In one
Ecuadorian community, the solar
installations were used to
organize a community party with
lights and music, damaging the
battery.
The
GPOBA
project
was
implemented in several Bolivian
regions, partly by the NGO
Energetica (individual solar
panels). Even if the project is the
same and that beneficiaries
received the same training one
year ago, people in the
highlands seemed to remember
much better the training and to
know how to maintain the
system, maybe thanks to a
higher education level.
34
In Peru for example, 28% of indigenous people older than 14 and living in rural area lack the literacy, while
this percentage is only of 14% for indigenous people living in the city (2007). Less than of indigeneous
children living in the countryside attend school (VASQUEZ Enrique, Niez indgena y educacin bilinge en el
Peru: estadsticas recientes, preguntas (i)resueltas y tareas pendientes, Care Per, Educa, Save the Children,
Tarea, Unicef, Grupo Impulsor de la Educacin en reas Rurales, Lima, 2009. (p60 et 188)).
68
use of drawings is recommended, minimizing written materials.

-
In group and individual: groups trainings allow people

to share their opinions and fears, while individual
trainings is a way for shyest people to dare expressing
their questions.
Repeated: the trainings should be done several times,

preventing people from forgetting basic instructions.
Addressed to several members of the households: not

only the family leader should attend the meeting but
also all the family members, since all of them will use
the installations.
In the projects that were visited, a simple explanatory poster

was generally pasted on the households wall, remaining the
proper use of installations (even it is likely that users did not read it).
Additional trainings such as accounting might be useful, for example if the management models
include fees collection by community members.
II.3.4.2 Training of local technicians
The issue:
When no local technicians are available in the
community, maintenance can be very complicated
because of costs and distance to get an outsider
technician. In addition, some families might not have
cellphones to call for a technician.
Field visits revealed that some families did not contact
the community delegate when devices were broken:
they simply stopped using the device, even if they
expressed that the technology really bettered their
living conditions. The reasons for this lack of aftersales services calls are not known at this stage and
would require deeper anthropological studies.
Due to the isolation of the Sibina

Sallma
community
(Peru),
maintenance is a key aspect. Indeed,
a component such as a diode costs
around 1 euro while transportation
to the sales center costs at least 2.5
euros. That is why PA NGO trains at
least two technicians from the
community: they are in charge of
selling small components and fixing
easy problem, after a one year long
training.
69
The solution:
Some projects include local technicians training, as a way to ensure quick maintenance, project
ownership and sometimes job creation. The local technician training should not replace the endusers training. One of the main barriers for technicians training are costs and time-related. In
addition, some NGOs (such as Light Up the World) choose to train several technicians in one
community, in case some of the technicians decide to leave the community.
II.3.5 Toward ownership: long-term sustainability
The long-term sustainability could be fostered through:

(i)
(ii)
(iii)
Long-term follow-up visits

Repair and maintenance activities
Recycling
II.3.5.1 Long-term follow-up visits
The issue:
Follow-up visit are needed so that (i) defaults in the
management model can be detected and corrected (ex:
the person in charge of collecting fees left the
community, the technicians are not available for
maintenance), (ii) continuous training can be provided to
the end-users, (iii) needs for maintenance and
replacement activities can be identified, (iv) impacts of
the project can be monitored.
The GPOBA project in Bolivia

includes follow-up visits during the
first months after solar panels
installation. These visits to each
household are called preventive
maintenance (in opposition to
corrective maintenance, see next
info box) and aim at checking the
installations, filling monitoring
sheets and reinforcing users
training.
Small
maintenance
activities can as well be concluded
during these preventive visits.
While funding for renewable energy project is relatively

achievable, funding are often lacking for follow-up visits.
In the best-case scenario, follow-up visits stop after 2 or
3 years, whereas installations are supposed to last up to
20 years. Long-term follow-up visits can be very
70
challenging in terms of costs and time, considering the extreme dispersion of end-users, the lack of
roads, difficult weather, etc. For this reason, many projects are likely to be out of order if the
management model is not efficient (meaning that the household or the community did not have the
resources to cover maintenance costs).
The solution:
Mechanisms should be implemented to provide long-term funding dedicated to field visits to ensure
the sustainability of the project.
II.3.5.2 Maintenance & Repair activities
The issue:
Once a problem is identified by the end-user, local
technicians or the implementing organization,
maintenance and repair activities should be completed
according to the management model schemes (which
should define who is in charge of maintenance and
repair activities). Nevertheless, as previously
mentioned, sometimes users do not report the failure
(no after sales-services reflex, loss of the technician
phone number, etc.) and simply stop using the system.
Even once the problem is reported, maintenance can
be delayed or cancelled if the local technicians or the
components to be replaced are unavailable.
Within the GPOBA project, when the

installation is not working properly,
the family needs to fill a sheet and to
report
the
failure
to
the
implementing organization, which is
expected to fix the problem within
15 days for free (except if the family
itself broke the system), during the
two years of the systemswarranty.
The solution:
A continuous management process must be
implemented so that long-term follow-up visits are
followed, when necessary, by maintenance and repair
visits. Depending on the specific maintenance & repair
needs, various processes can be followed, for example: ensuring the presence of a technician during
the follow-up activities (for performing immediate small repair activities) existence and strength of
the spare parts distribution channel, presence of trained personal in the areas of use for warranty or
extra-warranty services, etc.
71
II.3.5.3 Recycling
The issue:
The lack of a recycling chain in the Andean country is a challenge for the environmental sustainability
in the long term.
None of the projects that were visited had a clear recycling strategy, which can be a critical issue in
the coming years. Households do not seem aware of contamination risks, throwing away small
batteries in their garden, near their crops and animals.
The solution:
Several NGOs representatives reported that people can sell the used batteries to companies since
the metals are valuable, and then use the money to buy a new battery. But there is no checking to
know if it is really the case (batteries generally have a 5 years old lifespan).
In general terms, a recycling chain should be implemented, this knowing that it will be timeconsuming and costly.
***
CONCLUSION OF II-3 (Success in access-to-energy projects)
The sense of ownership should be fostered during all the steps of the project and for all stakeholders.
Long-term operation, maintenance and recycling are challenging issues that are still lacking funding in
the long term, although these activities are necessary for projects sustainability.
72
II.4
Conclusions on the Part II
We remind here the progressive elements of the analysis done in this Part II.
CONCLUSION OF II-1 (Decentralized solutions)
Rural electrification through decentralized energy production is thus a relevant option in many
areas, considering the difficulties for grid extension (feasibility and costs).
CONCLUSION OF II-2 (Energy & Lighting through renewables)
Renewable energies are suitable for rural electrification in all Andean countries: for every
climate and houses dispersion, at least one technology can be used. In addition, they might
be cheaper than grid extension for isolated houses.
Biodigesters for electricity are not suitable for families (too expensive) and there are very
few biodigesters at a community level.
When houses are close to each others, hydro is the cheapest technology.
Wind turbine technology is not used a lot because of lack of reliable wind maps.
Solar works almost in every region Andean countries and is by far the most frequent solution
for off-grid rural electrification.
In Latin America, only solar lanterns are currently used as lighting stand-alone devices.
CONCLUSION OF II-3 (Success in access-to-energy projects)

The sense of ownership should be fostered during all the steps of the project and for all
stakeholders. Long-term operation and recycling are challenging issues that are still lacking
funding in the long term, although these activities are necessary for projects sustainability.
In order to conclude this Part on the possible solutions for responding the needs described in Part I,
we propose the following paragraph.
CONCLUSION OF II (Responding the access-to-energy needs)
Solutions exist to address the core poverty and development issue of access-to-energy for
electricity and lighting purposes. Focusing on decentralized solutions is a necessity for providing
access to energy to the populations that currently do not have it, especially those living in
remote areas. Technological options have been developed and reasonable experience has been
raised on these. Nevertheless, these technological solutions cannot be implemented in a
successful manner without a careful project design, management and follow-up that puts the
ownership sense and the long-term sustainability at its heart.
73
III.
Relevance of carbon markets for rural electricity and lighting

access
In this section, we will introduce the functioning of carbon markets and their potential to boost
efficient energy solutions for electricity and lighting, to foster projects sustainability.
This section will present:

(i)
the general mechanism of carbon markets and their impacts on projects

sustainability,
(ii)
the methodologies that do exist for renewable energy and lighting projects,
(iii)
the general criteria to assess the feasibility and the profitability of registering such
projects on carbon markets.
74
III.1 General presentation of carbon markets

III.1.1 Compliance carbon market VS Voluntary carbon market
The problem of climate change led to subscribe the Kyoto Protocol 35, which falls within the UN
Framework Convention on Climate Change. This document implies that industrialized countries
reduce their emissions of greenhouse gases (GHGs). Then, the overall objective is detailed for each
country (for example for 15 European Union countries the reduction target is 8%).
The carbon market has been created to
allow countries and companies from
industrialized countries to meet in an
easier way their objectives of emission
reductions according to the Kyoto
Protocol. This consists of a purchase and sale space of
emission quotas& certified GHG emission reductions,
also called carbon credits. Each carbon credit equals
to one ton of certified CO2e (GHG amount is
equivalent to one CO2 ton) that is not emitted into
the atmosphere.
Carbon markets allow financial support for projects that reduce the emissions of greenhouse gas.
For example, a European company can offset its carbon footprint by funding a clean project in
another country, such as electrification in a community through wind turbines.
There are two main mechanisms for carbon market:

The compliance market, linked to the Kyoto protocol and legal obligations to reduce
emissions,
The voluntary carbon market were off setters are not motivated by any legal obligation.
35
The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on
Climate Change, which commits developed countries by setting internationally binding emission reduction
targets. The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16
February 2005.
75
For projects of access to basic energy needs for poor populations, Microsol always recommends the
voluntary market for different reasons:
- The certification process is shorter/ easier (no need to go through heavy processes of the
UNFCCC).
- As buyers on the voluntary market highly pay attention to social co-benefits of the projects,
it is easier to valorize the qualitative side of the carbon credits and thus reach higher
prices.
III.1.2 Projects versus programs of activities
Within these two markets, it is possible to work

either at a project level or at a program level.
For the types of activities envisaged in that
study (electrification and lighting), the size of a
standalone project cannot exceed 10,000 tons of CO2eq generated each year.
When various similar projects are considered, it is possible to operate them under a single scheme
called Program of Activities (PoA). Such scheme offers simplified rules in the carbon certification
process of the projects allowing: faster procedures and reduced transaction costs (cost sharing and
economies of scales).
For a given set of activities, if the annual volume of credits targeted is above 15,000 tons of CO2eq.,
it is cheaper to operate under a PoA scheme instead of doing two standalone projects. Below that
threshold, standalone project scheme might be better.
III.1.3 Carbon certification process

The certification of a project in the carbon market is a long process (it usually lasts more than one
year), aiming at (i) proving that the project fulfills carbon market requirements (in yellow in the
graph below) and at (ii) calculating the CO2e emissions reductions generated by the project (in blue
in the graph below).
(i) To prove that the project fulfills carbon market requirements, it is necessary to:
Organize a local stakeholders consultation, which will guarantee the acceptance of the
project by local actors
Write project design documentation, which will be validated by international auditors
accredited by the UNFCCC/quality standard (called Designated Operational Entity - DOE).
One of the objectives of this document is to demonstrate the project additionality.
These steps will enable the registration of the project with the quality standard.
76
(ii) Every year, it is necessary to calculate the CO2e emissions reductions generated by the project
through:
The monitoring activities enable emissions reduction calculation, following a rigorous
methodology defined by the UNFCCC/quality standard (see following section).
The validation of these previous emissions reduction calculation by international auditors
(DOE)
The certification of these emissions reduction calculation by quality standard
These steps will enable the issuance of carbon credits, which will be sold in the carbon
market to generate financial resources for project sustainability.
III.1.4 Assessing revenues and costs: carbon methodologies
The calculation of carbon emissions reduction is based on a methodology, created by a carbon

certification body(the United Nations (UNFCCC) or others certification standards like Gold Standard,
Verified Carbon Standard, etc.). This methodology explains monitoring requirements and allows
assessing carbon revenues and costs of the project.
Choose a carbon
certification body
Choose a
carbon
methodology
Identify monitoring
obligations from the
methodology
Assess carbon
revenues and
cost
77
The carbon revenues will depend on:

-
the reduction of emissions allowed by the Methodology selected

the price of carbon credits found on the market
The carbon costs will depend on:

-
the certification costs related to the certification body selected

the tasks of monitoring and documentation related to the Methodology selected
The most appropriate certification body for such kind of projects is the
Gold Standard36 because the micro-scale option it offers lowers
tremendously the costs of certification. All the analyses that follow will
be based on that scheme.
The Methodologies selected are detailed in the next part.
III.1.5 Emission reductions and carbon credits
As mentioned before, a carbon credit corresponds to a certified reduction of 1 ton of CO2 or an

equivalent amount of another greenhouse gas (1 tCO2e).
The emission reduction (ER) is usually calculated comparing the emissions before and after the
implementation of a project. The ER is equal to the difference between Baseline emissions and
Project Scenario emissions.
-
Baseline Scenario: it represents the community situation BEFORE the project and is necessary
to calculate carbon emissions reductions.
Project Scenario: it represents the community situation AFTER the project and is necessary to
calculate
carbon
emissions
reductions.
CO2 emission-saving project
For example, lets consider a lighting

project were households used to have
kerosene
lamps
before
the
implementation of solar lamps. In that
case the baseline emission equals to
emissions emitted by the combustion of
kerosene in the baseline wick lamps and
the project emission equals to zero as
solar energy is considered as carbon
neutral.
36
ERs
3 tCO2 have been saved

=
3 carbon credits can be issued
10 tCO2
7 tCO2
Baseline
scenario
Project
scenario
See http://www.cdmgoldstandard.org/
78
III.1.6 Impacts of carbon markets on projects sustainability
Carbon market can foster projects optimization through:

-
Monitoring of the project: providing resources and methodologies to monitor the project,
rigorous statistics are created to better understand the project impacts and draw practical
lessons to continuously improve best practices.
External assessment: the quality of the project is assessed by an external certification,

independent and internationally recognized, proving the reality of social and environmental
impacts for end-users.
New resources, to reinforce project sustainability and its extension.
The Peruvian NGO ITYF is part

of the Qori Qoncha carbon
program,
dealing
with
improved cook stoves. Carbon
funding allowed to replace
50 000 combustion chambers
and to reinforce training and
sensitization. In 2014, ITYF
plans to use carbon incomes to
implement 10 000 new cook
stoves.
III.2 Methodologies for energy and lighting access

Overview of carbon methodologies for lighting and renewable energies project:
79
* The range of potential carbon revenues comes from the fact that a few factors may vary, altering
the value of DV and thus emissions reductions
80
* This amount represents the maximum of claimable emissions reductions, corresponding to a

situation where the end-users minimum service level is met.
81
III.3 General criteria to assess the relevance of carbon markets for a

lighting or electricity access project
III.3.1 General criteria
Voluntary carbon market can be a relevant

option for projects matching:
-
Previous consideration: Carbon

mechanisms
were
considered
during the Projects design and are
necessary
to
increase
the
emissions reduction volume. This is
the additionality criteria (see
above).
Profitability of carbon markets: the
benefits from the carbon credits
sales are higher than the costs
linked with carbon market certification.
Previous
consideration
of carbon
mechanisms
Feasible and
profitable to
register the
project of the
carbon market
Amount of ER
(size of the
project,
efficient use of
installations)
III.3.2 Profitability on carbon markets
The benefits of carbon markets depend on the size of the project and on the efficiency of the
installations (for example, if a solar lantern is not working any more, or if it is not used by the family,
it will not generate any emission reduction).
The break-even points, after 8 years on carbon market (with no consideration of the risks of failure),
are estimated at:
-
9 000 14000 families (considering a total installed power of 1150 kW)electrified with
disseminated renewable energy installations (except biodigesters).
8 000 12000 very poor families37 electrified with mini-grid renewable energy installations
(except biodigesters), or 2000-3000 families with a slightly better living conditions.
900-1 300 schools electrified with mini-grid renewable energy installations (except
biodigesters).
37
Situation of very poor beneficiaries who own the bare minimum (they may own lamps, and radios for example, but nor
fans neither fridges).
82
1 200-1 800 health centers electrified with mini-grid renewable energy installations (except
biodigesters).
13 000-19 000 lanterns (a family can own several lanterns).
These estimations will be confirmed in the next version of the report, providing details about costs
calculations.
***
The next section will study the relevance of carbon markets in the Andean countries for rural
electricity and illumination access, analyzing the context of each country in terms of energy
ecosystem and projects.
CONCLUSION OF PART III (Relevance of carbon markets for electricity and lighting projects)
The carbon market can be a tool for strengthening both the quality and the finance of accessto-energy or lighting projects. These projects are eligible to the carbon market and specific
methodologies for monitoring and carbon reduction calculations exist. The theoretical frame is
therefore ready for applying a carbon market scheme to the projects we are considering.
83
IV.
Relevance of carbon markets in the Andean countries for

rural electricity and illumination access
In this section, we will analyze the opportunity of carbon markets in each of the five Andean
countries, taking into account existing and future projects, as well as legal frame.
This section will present:

(i)
a screening of electricity and lighting projects in the five countries, as well as a

general vision of the ecosystem in the five countries,
(ii)
eligible projects in each country, by reviewing and assessing each country under a
carbon market perspective,
(iii)
a detail of carbon markets eligible projects
(iv)
funding opportunities to help covering investment costs for carbon market projects
integration.
84
IV.1 Screening of projects in each country

IV.1.1 Rural electricity and lighting context in Colombia
Even if the percentage of population without electricity access is low, needs for renewable
electrification are high: the size of the country results in 1,5 million rural people without access to
electricity.
A few NGOs or companies with a social component work on rural electrification projects, usually in
partnership with the government. The good economic situation of Colombia implies that
international cooperation bodies are not very active in this country for rural electricity matters, with
the exception of the United State through the Colombian Clean Energy Project and of the
Iberoamerican State Organization for schools electrification.
There are surprisingly few projects related to renewable energy, considering the high number of
households without electricity access. Rural electrification is not a priority for the government and
when rural electrification is implemented, it is primarily through diesel generators (sometimes with a
few solar panels as well). A few projects with solar panels, micro hydro plants and solar lanterns have
been registered, but there are above all pilot projects. Previous negative experiences with renewable
energy made the government reluctant to develop such projects in a massive way, but it might
change in a midterm perspective. Every year, the Ministry of Energy organizes an international
renewable energy event to share good practices.
Colombia is pretty mature for carbon markets, both compliance and voluntary. Regarding the latest,
Colombia started in 2011 a platform to centralize voluntary carbon projects, which should be
available in 2014.
The security situation should also be closely considered, since the neediest regions are often the
most unsafe. In addition, there are still conflicts about lands ownership which might be a problem
for the ownership of electricity installations.
More details about Colombias situation are to be found in the Annex (I.1
Colombia).
IV.1.2 Rural electricity and lighting context in Ecuador
Electrification rate is high in Ecuador, resulting in a limited number or rural households without
electricity (500 000 rural people without electricity access). The Amazonian region and the Northern
Coast of Ecuador are the only places where there are still high needs for rural electrification, but
these areas are very isolated, families are far away from each other: as a consequence, electrification
projects in these areas are very costly.
85
A few NGOs work on electricity access issues, as well as international cooperation bodies such as the
Inter-American Development Bank (IADB) or the United Nations Development Program. Solar energy
is privileged, with sparse micro hydro projects as well. Generally speaking, electricity access
programs tend to be state-centered: energy being of primary importance, it is the States will to
centralize all initiatives on this matter. In addition, since electricity and energy in general are strongly
subsided by the Ecuadorian State, it is not profitable to develop independent energy systems without
subsidies.
IADB (in partnership with the NGOs FEDETA and IICA) is currently launching a pilot project to electrify
12 Amazonian communities through solar panels, whose second objective is to develop a
methodology to scale-up this kind of projects within a few years.
The voluntary carbon market is not well developed: the government has worked only on the
compliance market so far but is not opposed to entering the voluntary market if it proves to be more
profitable.
More details about Ecuadors situation are to be found in the Annex (I.2
Ecuador).
IV.1.3 Rural electricity and lighting context in Peru
Peru had a sound economic growth during the last years but some segments of the population
remain very poor and lack access to basic services such as electricity and lighting: 580 000 rural
people are still lacking electricity access.
Many NGOs and international cooperation programs (Endev Program coordinated by the German
cooperation agency - GIZ, Japanese and Dutch Cooperation among others) have been working on
rural electrification projects for many years, mainly through solar energy although several pilot
projects use other technologies such as wind turbines, micro hydro plants or biodigester for
electricity generation. The Peruvian government launched a few months ago a call for tender to
electrify up to 500 000 households with solar panels (seeV.1
Peruvian bidding summary): projects
should start at the end of 2014. Furthermore, the market for solar lanterns is getting developed by
private actors, with the support of Endev program.
Peru is opened to foreign initiatives and to the carbon market: climate change actions are on the top
of the agenda, since Peru will held the next international conference on climate change (COP 19) at
the end of 2014, before the next conference in Paris. The country has thus a good potential to use
carbon mechanisms for electricity and lighting projects.
More details about Perus situation are to be found in the Annex (I.3
Peru).
86
IV.1.4 Rural electricity and lighting context in Bolivia
Bolivia has the lowest electrification rate in the Andean region, with 410 000 rural people lacking
electricity access. The government plans to electrify the whole population by 2025, mainly through
grid extension (grid energy is cheap thanks to national gas extraction).
Being the poorest country of South America, Bolivia receives extended support from the
international community to lead electricity and lighting programs (Endev program coordinated by
GIZ, World Bank, IADB, GPOBA, etc.) although different political views led to the eviction of the US
cooperation agency (USAID) in 2013. Many NGOs and private companies are also working for rural
electrification, with independent projects or taking part in call for proposals from the State. The
biggest projects for electricity and lighting access are gathered under the program Electricity to live
with dignity, managed by the Bolivian Ministry of Energy.
Solar panels is the most popular technology, even if solar lanterns are getting more and more
widespread, both in private markets and in development projects: since many rural Bolivian
households have a low electricity consumption (with a few lamps, a radio and a cell-phone), solar
lanterns with USB chargers are sometimes enough to answer their needs. Besides, their low cost
compared with solar panels and their ability to replace flashlights with non-rechargeable batteries
made them a convenient option for farmers. Micro-hydro projects are relatively well-developed as
well. A few wind-turbines, especially with the European project Euro Solar, have also been installed.
Regarding carbon markets, the government is reluctant to enter carbon markets (both voluntary and
compliance markets): Bolivia is seeking alternatives to the mainstream positions related to Kyoto
process. The government position concerning voluntary market could evolve in the coming months.
More details about Bolivias situation are to be found in the Annex (I.4
Bolivia).
IV.1.5 Rural electricity and lighting context in Chile
Given the high electrification rate in the country (only 30 000 rural people lacking electricity access),
programs providing access to energy and lighting are small in Chile. Some areas in the country are
still lacking electrification such as the North of Chile (Aymara communities) and the South (Mapuche
communities), as well as some islands.
As far as our study goes, only one NGO working on rural electricity access for the poorest has been
identified, with recent activities (electrification projects started in 2013). The Ministry of Energy has a
department for rural electrification with a few projects. Association regrouping actors of solar and
hydro do exist but are not focused on electricity access for poor people.
87
Programs focusing on change of the energy mix to promote renewable energies and energy
efficiency are the priority for the government, to balance the country dependence on electricity
importations.
More details about Chiles situation are to be found in the Annex (I.5
Chile).
IV.1.6 Electricity and lighting projects
The following tables summarize rural electricity (through renewable energy) and lighting
projects in the 5 Andean countries, based on interviews with the actors (see V.3 List
of
interviews and conferences) and literature review. Nevertheless, it is necessary to keep
in mind that this list is not exhaustive and may contain errors, inaccuracies and
omissions due to several factors:
-
The length of the study did not allow meeting all the actors, although all the major ones have
been interviewed.
To our knowledge, no database gathering electricity and lighting projects do exist at this
moment in any of the five Andean countries (one is under construction in Colombia).
Interviewed actors did not always have detailed data concerning the projects their
organization implemented, due to the lack of centralized information and the turnover of
employees.
Within the same organization, different interviewers may have different data.
Future projects and current projects may change (number of installations, funders).
In spite of our vigilance, the same installations might be registered in two different projects,
due to the numerous actors taking part in a specific project.
Additional information on projects (especially the source of information) is available in an

independent Excel file. Please do not hesitate to share remarks and complementary data to improve
this database to eetienne@microsol-int.com .
88
Technologies
Implementing
Country organization
Funders
Households
number
Type
Type
beneficiaries
Starting Ending
date
date
Biodigester
Hydro
Bolivia
Bolivia
SNV/Soluciones
Prcticas/Hivos/CIMNE
Bolivian government
Looking for funding

Kfw
6000
600
Disseminated
Mini-grid
Households
Households
2014?
2009
1000
Mini-grid
Households,
Ngos
120
50
70
260
10000
200 schools
Mini-grid
Mini-grid
Mini-grid
Mini-grid
Disseminated
Disseminated
Households
Households
Households
Households
Households
Schools
Hydro
Bolivia
Ecotec
Denmark, Canada, Italy,

Belgium, Germany
Hydro
Hydro
Hydro
Hydro
Solar
Solar
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
Soluciones Prcticas
Soluciones Prcticas
Soluciones Prcticas
Soluciones Prcticas
Bolivian government
Bolivian government
Swedish Postcode
Foundation
PEVD (in negociation)
PEVD (in negociation)
IICA
World Bank
World Bank
Solar
Solar
Solar
Solar
Solar lanterns
Solar lanterns
Solar lanterns
Solar lanterns
Solar lanterns
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
Bolivia
GIZ
GPOBA/Bolivian
government
Bolivian government
Energtica
GIZ
GIZ
IICA
World Bank
World Bank
IICA
World Bank
BID
IICA
100
communities Disseminated
Schools, health
centers,
orphanage, etc
7500
10000
NA
2000
15000
1800
5000
508
Households
and schools
Households
Schools
Households
Households
Households
Households
Households
Disseminated
Disseminated
Disseminated
Disseminated
Disseminated
Disseminated
Disseminated
Disseminated
2017
past
2012
future
future
2013
2014
past
2007
Sept.
2013
2010
2013
future
2013
future
2013
89
Technologies
Solar lanterns
Solar lanterns
Implementing
Bolivia
Private market
Bolivia
Soluciones Prcticas
Funders
Individuals
Households
number
Type
15000
Disseminated
37
Disseminated
Type
beneficiaries
Households
Households
Starting Ending
date
date
past
future
300
communities
Disseminated
Schools and
health centers
future
Disseminated
Schools and
health centers
Mini-grid
Households
1992
Solar/Wind
Bolivia
Bolivian government
OPEC? (in negotiation)
Solar/Wind
Bolivia
EuropeAid
EU and Bolivian
government
Hydro
Chile
MTF LTDA
59
communities
32
communities
Chile
Desafo Levantemos
Chile
12 schools
Mini-grid
Schools
2013
Ministry of energy
75 schools
and healh
centers
Mini-grid
Schools and
health centers
current
Mini-grid
Schools
Near
future
2013
Solar
Solar
Wind
Hydro
Solar
Solar lanterns
Hydro
Chile
Chile
Colombia
Colombia
Colombia
Ecuador
Ministry of energy
DPS, IPSE, FONADE,
CCEP
IPSE, Fundacin
Endesa, Endesa
Colombia, Embajada de
Japon, Ecopetrol
USAID
FEDETA
16 schools
USAID
3700
Mini-grid
Households,
schools, health
centers
FERUM
260 schools
300
51
Mini-grid
Disseminated
Mini-grid
Schools
Households
Households
May
3013
2011
2013
2004
2005
90
Technologies
Solar lanterns
Implementing
Ecuador Private market
Biodigester
Peru
SNV/Soluciones
Prcticas
Peru
Peru
SNV/Soluciones
Prcticas/Hivos
Grupo PUCP
Soluciones Prcticas
Biodigester
Hydro
Hydro
Hydro
Solar
Solar
Solar
Solar
Peru
Peru
Peru
Peru
Soluciones Prcticas
Acciona Microenerga
Adinelsa
Peru
Peru
Asociacin Seglar
Misioneros de Jess
Entelin
Solar
Peru
Solar
Peru
Households
number
Type
2000
Disseminated
Type
beneficiaries
Households
224
Mini-grid
Households
Looking for funding

European Union
5000
6500
Disseminated
Mini-grid
Households
Households
2014?
2018
2013
Green Empowerment,
Totota, Fundation Meal a
Day
4500
Mini-grid
Households
2008
2013
1 school
1700
1000
Mini-grid
Disseminated
Disseminated
Schools
Households
Households
2011
2012
2013
2000
10000
Disseminated
Disseminated
Households
Households
2007
2014
2008
395
Disseminated
Households,
schools, farms,
health centers
2011
2013
4200
Disseminated
Households
2007
Funders
Individuals
Osprey Foundation,
Tutheran World relief,
Practical Action
BID
ESF
BID
LUTW
Peruvian Energy
Ministry
Starting Ending
date
date
past
91
Technologies
Implementing
Households
number
Type
Type
beneficiaries
Starting Ending
date
date
Solar
Solar
Peru
Peru
OEI, Soluciones
Prcticas
Soluciones Prcticas
OEI and MINEDU
14 schools
250
Mini-grid
Disseminated
Schools
Households
2012
Solar
Peru
Unknown
Peruvian Energy Ministry
500 000
Solar
Solar lanterns
Peru
Peru
Suntech and Entelin

Entelin
Peruvian Education
Ministry
Private market
34500
550 devices
Disseminated
Disseminated
Households
Households
2009
2013
2010
US Department of State
(ECPA initiative) and GIZ
Private market
2000
2000
Disseminated
Disseminated
Households
Households
2013
past
2014
Households
Schools and
health centers
past
EuropeAid, MINEM
3000
Disseminated
91
communities Mini-grid
Solar lanterns
Solar lanterns
Peru
Peru
PowerMundo
PowerMundo
Solar lanterns
Peru
Sundaya (Bright Sun

Power Peru)
Solar/Wind
Peru
EuropeAid
Funders
2014
2014
May
2012
92
IV.2 Eligible projects in each country: overview

The following table gives an overview of the countries situation, taking into account 4 criteria:
1. Rural households without electricity: other buildings, such as health centers or schools, can
be eligible for carbon market. But the lack of statistics made us favor the households
indicator. Besides, it is important to stress that rural households without electricity access
are unlikely to be all electrified with renewable energies.
2. Government position on carbon markets: this indicator summarizes the ripeness of carbon
markets in each country and especially concerning voluntary carbon market.
3. Existence of eligible projects in the short term presents the scope of projects in lighting (
) and renewable energy (only solar projects:
) that will be implemented in 2014 and
which match basic eligibility criteria for carbon markets (previous consideration and
minimum size of installations).
4. Existence of eligible projects in the long term presents the projects that should be
implemented in 2016 or later, based on interviews with local actors.
93
Rural households
without
electricity
Colombia
Ecuador
Peru
Bolivia
Chile
360 000
120 000
580 000
410 000
30 000
High needs
Carbon
markets
promotion
Possibility of
RE projects in
the long term
Few RE and
lighting projects
in the short
term
Will to
promote RE
(especially
solar)
Possibility of
RE projects in
the long term
Low needs
Few RE and
lighting project
in the short
term
High needs
Will to
promote RE
(especially
solar)
Projects to be
implemented in
the short and
long term
Carbon
markets
promotion
High needs
Will to
promote RE
(especially
solar)
Projects to be
implemented in
13and
the short
long term
Position
towards carbon
markets to be
defined
Government
position on
carbon
Existence of
eligible projects
in the short term
Existence of
eligible projects
in the long term
Conclusions on
carbon markets
relevance for
electricity and
lighting project
Carbon
markets
promotion
Low needs
Few RE and
lighting project
in the short
term
Conclusions on the relevance of carbon market for the 5 Andean countries:

1. Bolivia and Ecuador have an intermediate position towards carbon markets, but for different
reasons. In Ecuador, the compliance market is well developed but there is only one project
registered on the voluntary carbon market38. As far as Bolivia is concerned, there is no
compliance market and a few projects on the voluntary carbon market 39.The position of the
Mother Earth Office, responsible for the official position of Bolivian government on carbon
markets, might evolve in 2014.
38
According to Markit: http://mer.markit.com (reviewed on January 15th, 2013).
39
A few years ago Bolivia was among the most advanced countries regarding the compliance market, especially
for projects related to forest protection. In 2009 the government radically changed its strategy with carbon
system withdrawal. In 2010, Bolivia organized the Conference on Mother Earth and the Rights of Nature in
Cochabamba and signed the Tiquipaya peoples agreement, rejecting carbon market.
94
2. All the Andean countries have currently renewable energies projects, but only a few projects
match the carbon market requirements, especially the size criteria. The eligible solar energy
project in Peru and the lighting project in Bolivia will be presented in the following section.
5. Apart from Chile where the electrification rate is very high, all the Andean countries aim to
reach a universal (or almost universal) access to electricity within 15 years, which should
imply the development of consistent solar projects in rural areas carried on by the national
governments. At this stage, Ecuador and Colombia are developing solar pilot projects in
order to replicate them by 2016. Bolivia and Peru benefit from a greater previous experience
regarding isolated solar panels implementation.
3. Independent lighting solutions are considered by government programs only in Bolivia. In
Peru, the private sector is getting organized with the support of Endev program to
disseminate this technology.
Carbon market opportunities ranking, for electricity and lighting projects:
1.
2.
3.
4.
5.
Peru
Bolivia
Colombia
Ecuador
Chile
IV.3 Eligible projects in each country: detail of main opportunities

The previous table of projects gave an overview of all the past, current and future projects, which
were identified in the five countries. If we apply to these projects the basic criteria of carbon market
feasibility (previous consideration) and profitability (size of the project), two projects in the five
countries present an opportunity for carbon market integration. These two projects are introduced
below.
IV.3.1 Peruvian bidding for rural electrification through solar panels
In September 2013, the Peruvian Energy Ministry published a solicitation of tender to electrify up to
410 000 households, 7530 health centers and 2100 schools through solar panels40 (minimum: 149
40
http://www2.osinerg.gob.pe/EnergiasRenovables/contenido/Documentos/1SubastaOffGrid/Bases/NuevasBase
sSubasta10042014.pdf
95
000 households (80W minimum), 2260 health centers and 630 schools). Up to 3 companies can win
the tender; each of them would be responsible for one region (Northern, Center or Southern Peru) 41.
Supervisor of the tender: Osinergmin (the countrys supervisory agency for investments in energy
and mining), www.osinergmin.gob.pe, with consultancy from the InterAmerican Development Bank
(IADB).
Period: 15 years
Bidding results publication: September
12th of 2014
For this project, there should be no
problems with the previous consideration
of carbon market criteria since it is
included in the project database: all the
bidders are likely to include carbon
consideration within their project. In
addition, carbon market is a hot topic in
Peru since the 20th conference on climate
change (Conference of Parties COP) will
be held in Lima in November 2014. But
there is a risk that this ambitious biding
fails.
The opposite diagram summarizes the
possibilities to integrate the bidding
projects on voluntary carbon market:
IV.3.2 Diffusion of solar lanterns in Bolivia
The InterAmerican Development Bank is funding a solar lantern project (Phocos model, 80$ the
device), which will be implemented by the NGO Energetica. 10 000 lamps should be implemented in
a first step, and 5000 more it the pilot is successful. The objective is to work with small
entrepreneurs, to create a micro-franchise network. IADB is providing technical support (which helps
for example to cover the salary of Energeticas team) and a loan the entrepreneurs will need to
reimburse the loan. Energetica will help with marketing, logistic.
Starting date of implementation: second semester of 2014.
41
Details on the bidding can be found in the Annexes: V.1
Peruvian bidding summary.
96
Period: 5 years.
This project is big enough to generate revenues that offset the costs associated to carbon market
integration. Nevertheless, the net profits are limited: it could be a good opportunity if the solar
lanterns market increase in Bolivia which is likely to happen since many actors promote this
technology. In addition, key actors such as Energtica are already familiar with carbon market
process and the methodology for solar lanterns is relatively easy to implement. Nevertheless, before
integrating this project on carbon markets, it would be first necessary to get the government support
regarding carbon market relevance for the national political orientations.
The diagram below summarizes the possibilities to integrate the lamp project on voluntary carbon
market:
97
IV.4 Funding opportunity for a carbon scheme focused on access-toenergy issues

The table below summarizes and assesses funding opportunities to develop an carbon scheme
focused on access-to-energy in the Andean Region.
Funding
type
Acceptance
probability
The EEP partnership is implemented by IICA. They

will launch a 3rd call for proposal in 2014. They
usually support small-scale projects promoting
innovation in energy but in the previous edition,
one of the accepted project was a PoA creation in
Colombia.
Grant
30%
They invest to support small producers or

companies selling products for the bottom of the
pyramid.
Loan
70%
Carbon
credits
purchases
Not for the

moment:
wait for a
call of
proposal
that would
consider
LAC.
Grant
5%
Name
Description
Energy and Environment

Partnership (funded by
Finnish government)
Grassroots Business Fund
Carbon Initiative for

Development (Ci-Dev)
The Energy Innovation

Contest (IDEAS)
Ci-Dev is launching a call for proposal (deadline:

January 31st, 2014) to purchase certified emissions
reductions to support low-carbon investments with
strong development benefits, mainly to support
increased access to energy in low-income countries.
Latin American is not considered in this call for
proposal.
IDEAS is an initiative to support the development of

innovative projects that promote renewable
energy, energy efficiency, biofuels and energy
access in rural areas. It was first released in 2009,
with 4th call of proposal since then and more than
1,800 applications from 28 countries in LAC. 43
winners have been selected so far.
***
98
The next section will introduce Microsol conclusions and recommendations regarding the
opportunities of carbon markets for electricity and lighting projects in the Andean countries.
CONCLUSION OF PART IV (Practical adequacy of a carbon scheme for electricity and lighting
projects)
Regarding the interest and possibility of applying a carbon scheme to electricity and lighting
projects, there is one limitation and two strengths. The limitation is that the size required for
projects to be eligible is very high, thus restraining the scope to few programs in the region.
The first strength is the advanced maturity (previous experiences, consciousness within all
actors including public authorities, implication of international bodies) of the sector in the
whole region. In addition, two specific opportunities have been identified around which it
looks possible to build a first phase of development.
99
V.
Conclusions and recommendations
We can now build some conclusions and recommendations on actions to be taken in order to make
these carbon schemes a reality for enhancing the efficiency and sustainability of access-to-energy
projects in the Andean region.
We will present them in three steps:

-
Costs-benefits analysis : find the equilibrium between scale and economic viability
The need for an innovative approach in the valorization of access to energy services
Proposal: An improved carbon scheme fostering the valorization of access to energy services
projects through impact-based partnerships
V.1. Costs-benefits analysis : find the equilibrium between scale and

economic viability
The objective is to draw a first conclusion on the economical feasibility of carbon schemes for accessto-energy services in the Andean region. We base ourselves (i) on the results of the study, presented
in the previous sections, and (ii) on Microsols experience of construction and management of
innovative carbon schemes for access to energy services.
100
At this stage, we must remind that two options can be selected as carbon scheme:
-
The one called microproject that (i) is the cheapest scheme, but (ii) has limitation in terms
of carbon credit per year
The one called microPoA that (ii) is more expensive, but (ii) doesnt have strong volume
limitation and therefore is more adequate to large potentials.
All economical analysis are based on :

-
Conservative assumptions in terms of price (10 USD / issued carbon credit);

The standard business model of Microsol regarding division of responsibilities :
The LPP (Local Project Participant): the owner of the project that is considered for
inclusion within the carbon scheme. He is in charge of installation of units, sustainability
activities, and his own monitoring.
The CME (Carbon Managing Entity): the owner and manager of the carbon scheme. He is
in charge of all carbon-related activities except the LPP monitoring.
The standard business model of Microsol regarding revenues collection:
70% for the LPP
30% for the CME
V.1.1. Cost-benefit for lighting activities certification on the carbon market

Single project
We remind that a specific opportunity has been identified and studied in the report (see section
IV.3.2.). This opportunity considers 15000 lamps to be disseminated.
We calculate the cost-benefit and the cumulated profit on this specific opportunity, and for both
parties (LPP and CME).
101
We see that such an opportunity on the carbon market would create:

-
Small profits for the field partner (LPP). Probably these profits would not be sufficient for the
considered LPP to enter the carbon market.
Growing losses for the CME.
Hence such an opportunity is not a viable one.
Multi-projects (PoA)
In case a regional dynamics on lighting consolidates, and with the additional condition of finding 10
new partners of the kind presented in section IV.3.2 within 5 years, the cost-benefit would result as
follow:
Here we understand that such an investment would result in :

-
Small profits on the long term for the LPPs. Again it is not likely that such LPPs would
implement the investment necessary to enter the carbon market.
Important and stable losses for the CME.
This scenario is then not a plausible one either

Conclusions for Lighting
There is no carbon certification modality that would reasonably allow a 15 000 units lighting program
to certify its impacts on the carbon market. Volumes must be much higher than the best
102
opportunities identified in the Andean region to be interesting for inclusion in the carbon market.
Alternatively, prices of carbon credits in the international market for such projects would need to be
much higher.
V.1.2. Cost-benefit for disseminated renewable energy activities certification on

the carbon market
Single Project
We remind that a specific opportunity has been identified and studied in the report (see section
IV.3.1). This opportunity considers a minimum of 150 000 households, 2200 health centers and 600
schools to be equipped with solar-based electricity generation devices (see Annex V.1 for more
details concerning the bidding).
For technical reasons (micro-scale projects are limited to 10 000 carbon credits a year), we split this
project into 3 for calculating the cost-benefit on this opportunity.
For any cluster (one third of the considered opportunity), the cost-benefit results as follows:
Such a carbon certification scheme would therefore result in :

-
Important profits for the LPP

Small long term profits for the CME
Hence such an opportunity may be a viable one, especially for the LPP.
103
Multi-projects (PoA)
In case the CME succeeds in joining 5 more of these clusters (this is a reasonable assumption,
resulting in a contract with two of the three winners of the Peruvian bid), the cost-benefit for each
parties would be as follows:
Here we understand that such an investment would result in :

-
Important profits on the long term for the LPPs. Again it is not likely that such LPPs would
implement the investment necessary to enter the carbon market.
Important investment for the CME (around 200 kUSD) but long term perspective of profits.
This scenario is then plausible. Nevertheless, a CME such as Microsol would consider the CME
investment as risky, because:
(i)
(ii)
The investment is rather high

The break-even occurs at the year 5 (we would usually invest when the breakeven occurs
at the year 3, in order to compensate the risk both on the LPP side and sales side).
Conclusions for Disseminated ENR

A single project (or in our case : single-cluster) approach would not be a reasonable investment for
the CME, though it would result in profits for the LPP.
A multi-project approach like a PoA is an average investment for the CME and would result in profits
for the LPP. It is reasonable to think that joining sufficient projects to reach a breakeven point at year
5 is feasible in the Andean region: the perspective of the Peruvian bid allows us to make this
assumption.
104
To secure a more reasonable trend, it would be probably necessary to secure higher prices for the
carbon credits.
V.2. The need for an innovative approach in the valorization of access

to energy services
We have in the cost-benefit analysis three types of assumptions:
-
Costs assumptions
Carbon generation assumptions
Impacts valorization through the sales of social & environmental certificates
The costs assumptions cannot be improved:

-
Best options for certification schemes have been selected.

All Human Resources, material, certification and transportation costs have been made at a 0margin basis: these are the real costs of a CME like Microsol
The carbon generation assumptions cannot be significantly improved:

-
Best options for carbon credits calculation have been selected

Conservative but reasonable assumptions have been made for the carbon credit / device
ratio.
Reasonable assumptions have been made on the potential of the sector for multi-projects
options.
Therefore we must focus the innovation on the improvement of the valorization of the carbon
scheme. This can be made by innovative sales strategies. Indeed, the valorization of our scheme can
be improved due to the fact that there is no unified carbon price on the market, and that higher
prices than 10 USD can be reached under certain conditions.
V.2.1. Possible strategies for improving the carbon sales assumptions
There are two main strategies that could be implemented for improving the carbon sales
assumptions:
4) Improving the final price of the social carbon credits. This would mean:
o An innovative offer to buyers going further than simple carbon offset sales.
o A qualified and innovative sales force
o Investments in communication and marketing
105
5) Changing the nature of the certification to certify and then value much better the social
impacts than the carbon market does. The singularity of access-to-electricity and lighting
projects are not in favor of carbon market certification: these projects are not as valued
in terms of carbon reduction as other social projects, for comparable impacts. Resolving
this issue would mean:
o To build a different approach of access-to-electricity and lighting projects
certification
o To market the new certificates in an innovative way (compared to traditional carbon
offsetting)
o To identify and raise demand for such certificates.
V.2.2 Application for lighting and disseminated ENR projects
The Excel documents joined to this study allow visualizing how the cost-benefit changes with the
price assumptions. Taking as reference a break-even at the third year for an objective for reasonable
investment, it appears that (all other assumptions unchanged):
-
For lighting:
o For the Project modality, a sales price of 80 USD / carbon credits would be required.
o For the PoA modality, a sales price of 100 USD / carbon credits would be required.
For disseminated ENR :
o For the Project modality, a sales price of 15 USD / carbon credits would be required.
o For the PoA modality, a sales price of 16 USD / carbon credits would be required.
It appears clearly that:

-
Strategy 1 (raising the carbon price) can be implemented for ENR projects. Such prices are
reachable with a good-quality work.
Strategy 1 (raising the carbon price) would not be sufficient for lighting projects. Such prices
are not reachable within a carbon scheme.
Strategy 2 (switching from carbon certification to social impact certification) would be
necessary for the lighting certification scheme to be a option.
106
V.3. Proposal: An improved carbon scheme fostering the valorization

of access to energy services projects through impact-based partnerships
We understand that disseminated ENR and lighting projects cannot be considered in the same way.
Disseminated ENR
A carbon scheme for disseminated renewable energies could be launched based on the study we
realized:
-
The Peruvian bidding offers interesting prospects in terms of volume.

The sectors looks promising in the whole Andean region on a medium-term perspective.
The cost benefit is interesting for possible local partners, and for the CME if the carbon price
is secured at a high level.
Lighting
It would not be reasonable to launch a carbon scheme only for lighting activities, due to the lack of
prospects that reach the minimum volume. For this type of activities, it would be necessary to secure
the demand for specific support of lighting projects at a much higher level. For that an alternative to
carbon market must be built and challenged with possible buyers.
Additionally, our proposal for the Access-to-Electricity and Lighting sector will be based on the
following beliefs:
(i)
Build up on a well-known robust scheme
We want to favor a model that proved successful. As well as we seek massive social impacts at the
project level, the idea is not to implement a highly-risky certification scheme. We need to have a
solid basis that will allow lighting and access-to-electricity projects to certify their impacts and
finance their sustainability with the value of these certificates.
(ii)
Add an innovative improvement that will not put at risk the scheme but reinforce it
The study identified some limits that cannot be denied. In particular the cost-benefit analysis showed
the need for improving some standard assumptions on the demand side. It is therefore necessary to
innovate within the robust scheme.
(iii)
Explore the future of impact-based financing
Structural limitations have been identified, in particular for lighting projects. To address these strong
barriers, it is necessary to build something new, something that sets other rules for the valuation of
certified social impacts in the Lighting and Access-to-Electricity sector. Research and Development is
required on that issue.
107
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(i)resueltas y tareas pendientes, Care Per, Educa, Save the Children, Tarea, Unicef, Grupo Impulsor
de la Educacin en reas Rurales, Lima, 2009.
YADOO Annabel, Delivery models for decentralised rural electrification: case studies in Nepal, Peru
and Kenya, International Institute for Environment and Development, London, 2012.
109
Sitography
In the sitografy, you will find a small selection of interesting websites. Please refer to the country and
technology sheets for further links.
Statistics:
Colombian households census (2005): http://www.dane.gov.co/index.php/poblacion-ydemografia/censos
Colombian institute of statistics: http://www.dane.gov.co/
Ecuadorian households census (2010):http://www.ecuadorencifras.gob.ec/censo-de-poblacion-yvivienda/
Ecuadorian institute of statistics: www.inec.gob.ec/estadisticas
Peruvian households census (2007): http://censos.inei.gob.pe/cpv2007/tabulados/#
Peruvian Institute of Statistics: www.inei.gob.pe
Bolivian households census (2012) :
http://www.censosbolivia.bo/binbol/RpWebEngine.exe/Portal?&BASE=CPV2012COM
Chilean households census (2012): http://www.censo.cl/ (the census will be redone in 2015 due to
major problems in the 2012 census)
Chilean National Institute of Statistics: www.ine.cl
CEPAL stats:http://estadisticas.cepal.org/cepalstat/WEB_CEPALSTAT/Portada.asp?idioma=2
COFACE (in French): http://www.coface.fr/
French Foreign Affairs Ministry (in French): http://www.diplomatie.gouv.fr
International actors websites:

Endev: http://endev.info/content/Main_Page , European Union: http://europa.eu, GPOBA:
www.gpoba.org,Inter-American Development Bank: www.iadb.org, Organizacin de Estados
Iberoamericanos: http://lucesparaaprender.org/web/, Practical Action: www.practicalaction.org,
Survival: www.survivalinternational.org, SNV: http://www.snvworld.org/, World Bank:
www.worldbank.org
110
Ministry of energy and Government Electrification institutes:

Colombian Ministry of Energy: http://www.minminas.gov.co
Colombian Institute of electrification: www.ipse.gov.co
Ecuadorian Ministry of Energy (in Spanish): www.energia.gob.ec
Peruvian Ministry of Energy: www.minem.gob.pe
Peruvian rural electricity program: www.dger.minem.gob.pe
Bolivian Ministry of Energy: www.hidrocarburos.gob.bo
Bolivian rural electricity program: http://www.pevd.gob.bo/
Chilean Ministry of Energy: www.minenergia.cl
Carbon market:
Voluntary carbon market :
http://www.markit.com/sites/en/products/environmental/markit-environmental-registry-publicview.page
www.cdmgoldstandard.org
Compliance carbon market : http://cdm.unfccc.int/
111
Annexes
I.
Country fact sheets

I.1
Colombia
Relevant facts for the study:
I.
Positive attitude towards carbon markets, both

voluntary and compliance market.
High needs for rural electrification.
No political will to develop renewable energy as a

rural electrification solution.
Some areas are still not safe due to guerrillas and

drug trafficking activities. Lands ownership can be
another problem.
General data
Population
In 2013, the estimated population is 48.3 million

inhabitants, among those 24.4% live in rural area
(UNDP, 2012). Households are on average
composed of 3.5 people (4,1 people for the
poorest rural households 2011, ECLAC)..
Size: 1 141 750 km2

Capital: Bogota (8 M inhabitants)
Main cities: Medellin (3, 4 M), Cali (2, 3 M),
Barranquilla (1,2 M), Cartagena (1M)
Official language : Spanish
Indigenous languages: approximately 85
Currency: Colombian peso (1 = 2340 pesos)
Economic and development indicators

In 2012, the GDP was US$ 370 billion, corresponding to 7 762 USD per capita. In 2011, 32.9% of the
population lived under the poverty line according to the Economic Commission for Latin America
and the Caribbean - ECLAC (28.5% in urban areas and 46.9% in rural area, among those 10.4% are
extremely poor).
112
Nevertheless, Colombia ranks among the highly

developed countries with its 0,719 Human Development
Index (HDI) (91th most developed country). In 2011,
14.3% of the urban population lived in slums (estimation
based on 2009 figures).
Annual growth
Inflation
Budgetary
balance/GDP
2011
2012
6.6%
3.4%
1.4%
4%
3.2%
0.6%
2013
(prev)
3.6%
2.2%
-0.7%
4.2%
3%
-0.6%
Colombia is a very unequal country since the 20% of the richest have 20 times more than the 20%
poorest (quintile income ratio). In addition, there are huge differences between the regions, the
Amazonian and the Coast communities being very poor (in light green on the map grey areas are
conflict regions, without data42). This situation is the result of the internal armed conflict (3 million
internal refugees).
Nevertheless, the size of the internal market (48,3 million people), the huge natural resources
(emerald, coffee, oil, coal) and a reputation of reliable debtor (the only country of the continent
which has never asked for debt renegotiations) make Colombia a very attractive market. In addition,
new oil resources have been discovered recently.
Colombia: GDP by economic activity at current prices, 2012

(ECLAC)
Financial intermediation
Wholesale and retail trade
Mining
Agriculture and related activities
Social and personal service activities

Manufacturing
Construction
Transport, storage and communications
6% 4%
7%
20%
9%
12%
17%
13%
12%
42
Colombia uses another indicator for poverty called NBI (Necesidades Bsicas Insatisfechas), for Unsatisfied
Basic Needs.
113
Politics
Juan Manuel Santos is the president of Colombia since
2010. Taking advantage of the high economic growth, he
launched a policy of democratic prosperity, focused on
the recognition of the internal conflict, the protection of
human rights and social issues. The first pillar was a law
to give back the lands to the owners and reparations to
the victims of the internal conflict, but the results are not
as good as expected. After three years of mandate, his
popularity is decreasing. The president promised to put an end to the internal conflict through
negotiations with the FARC guerilla before the next elections that will be held in March 2014. But
the country has still to face important drug issues, being the first cocaine producer of the world.
Colombia has a good relationship with the United States and the Western World in general.
Colombia signed a free-trade agreement with the European Union in 2010, is a cofounder of the
Alliance for the Pacific aimed at developing relations with Asia. Colombia also tried to improve its
relations with the neighbor countries of Ecuador and Venezuela in the past months, whereas
tensions were common in the previous years due to the Colombian internal conflict.
Geography
Colombia usually classifies its geography into five
natural regions: the Andes, the Pacific coast, the
Caribbean Sea coastal region; the Llanos (plains or
savannah), and the Amazon Rainforest region.
Colombia is the only South American country which
borders both Atlantic and Pacific Oceans.
II. Energy and Electricity

Energy: general data
The country produced 890 million barrel of oil equivalent (boe) in 2011 as primary energy production
and 155 million boe in 2011 as secondary energy production. More than 80% of Colombian energy
comes from petroleum and coal.
114
Colombia: Energy Mix for

primary energy, 2011 (ECLAC)
Natural Gas
Petroleum
Firewood
Other primary
Hydroenergy
Coal
9%
Colombia: Energy Mix for

secundary energy, 2011 (ECLAC)
Gasoline/alcohol
Diesel Oil
Kerosene
Fuel Oil
Charcoal
Electricity
Liquefied petroleum gas
Non-energy
Gases
5% 1%
15%
46%
18%
38%
4%
27%
6%
4% 1%
3%
2%
21%
Electricity and lighting: General data

In 2011, 96.8% of Colombian people had access to electricity (86.7% in rural areas), which means
that 1.5 million rural people lack electricity access (360 000 families) according to ECLAC. Families
without access to electricity are located mainly in the Amazonian region and on the Pacific Coast: the
non-connected area represents 2/3 of the national territory, with an electrification rate of 34% in
the very isolated regions.
In 2000, Colombia created a fund to electrify non-connected areas (FAZNI: Fondo de Apoyo
Financiero para la Energizacin de las Zonas No Interconectadas).
National plans
A National Energetic Plan was released in 2006 and runs from 2006 to 2025. The main objective is to
improve the energy national sector, making it safer, more reliable and efficient in order to ensure
national economic growth. Access to energy for non-connected population is the fifth and last
objective of this plan, it is considered as a way to foster local economy. Renewable energies and
environment protection do not appear as a priority, even if they are mentioned as transversal
thematic.
115
III. Climate change

Carbon dioxide emissions
Colombian population emits 1.8 ton of carbon
dioxide per capita every year, which is low
compared to developed countries (for example
in Belgium: 9.8 tons per capita). The carbon
dioxide emission per capita has a 0.3% annual
growth since 1970.
Deforestation
Colombia: Land and soil,

2009 (ECLAC)
Area of inland waters
Land area covered by forest
Arable land
Permanent crops
Permanent meadows and pastures
Other
7% 3%
Colombia has a moderate deforestation rate

(the forest area decreased by 3.2% from 1990
to 2010) compared to other Andean countries.
Half of the territory is covered by forest.
34%
53%
IV.
Carbon market
1%
2%
Compliance carbon market

Colombia has many projects registered on the compliance market; but only a few are related to
renewable energies.
Voluntary carbon market
Colombia started in 2011 a platform to centralize voluntary carbon projects, which should be
available in 2014. The platform is funded by the Global Environmental Facility and the InterAmerican Development Bank (10M $). The platform is managed by Fundacin Natura, the Colombian
stock exchange and the Bogota chamber of commerce. The goals of the platform are to save 464 000
CO2 tons, verify emission reductions for purchase by domestic or international buyers, support the
issuance of credits and foster demand through corporate carbon management strategies. Colombia
signed a first agreement with the Carbon Standard VCS.
116
V.
Legal frame and actors related to RE and lighting: preliminary conclusions

Actors and projects
Main actors in energy:

Ministry of Energy (Minminas): there are three funds and three organisms
working for rural electrification:
FUNDING for rural electrification:
FAZNI
MINAS (energy
ministry)
IPSE (rural
electrification
implementation)
UPME (rural
electrification
planification)
Getting funding for the generation of

each kWh
CREG (energy
pricing)
General System of Royalties

Getting funding from natural
ressources explotation (oil, gaz, etc)
FAER
Getting funding for the consumption of
each kWh
European Union: the EU has activities in Colombia since 1990. They have no
projects directly related to energy but work mainly in human rights issues,
democracy promotion and drug trafficking.
Inter-American Development Bank (IADB): energy is not part of the 20122014 strategy but might be tackled through other thematic such as science,
innovation and technology and housing and urban development.
APROTEC is a Colombian company specialized in all types of renewable
energies. It is one of the main energy actors.
Fundacin Natura: they work mainly for forest protection but is a major
actor for Colombian voluntary carbon market since they are in charge of organizing a
carbon platform.
The Iberoamerican State Organization (OEI) plans to electrify Colombian
rural schools through the program Lights to Learn. 260 schools are currently
getting electrified.
117
In Colombia, the Inter-American Institute for Agriculture supports the

creation of a carbon market platform and a biodigester project (for gas production).
Asocars gathers Regional Autonomous Corporations, which are related to
the Environment Ministry and in charge of implementing environment policies.
USAID, through the Colombian Clean Energy Project, is building 5 hydro
micro central for communities.
Hybrytec is a Colombian company focused on solar and thermal energy.
They sometimes take part in social project with the public sector, NGOs,
foundations, such as IPSE and USAID projects.
118
Lighting and renewable energies projects:

There are very projects related to renewable energy and lighting for isolated communities in
Colombia, despite of a high number of people without electricity access.
Hydro: 5 micro centrals are currently getting implemented by USAID.
Solar: the government plans to install hybrid systems (diesel generators with solar panels) in
the non-connected areas. After the current step of pilot projects, bigger projects might be
implemented within a few years.
Wind: no projects at a community level.
Biodigester for electricity production at a community or households level: no projects.
Lighting: USAID installed 300 solar lanterns and plans to develop an internal market to sell
solar lanterns.
Conclusions
The country is pretty mature for carbon markets, both voluntary and compliance and the needs are
high: even if the percentage of population without electricity access is low, the size of the country
results in 1,5 million rural people without access to electricity.
Nevertheless, there are very few projects related to renewable energy. Rural electrification is not a
priority for the government and when rural electrification is implemented, it is primarily through
diesel generators. A few projects with solar panels, micro hydro centrals and solar lanterns have
been registered, but there are especially pilot projects. Previous negative experiences with
renewable energy made the government reluctant to develop such projects, but it might change in a
midterm perspective. Every year, the Ministry of Energy, through IPSE, organizes a renewable energy
event to share good practices.
The security situation should also be closely considered, since the neediest regions are the most
unsafe. In addition, there are still conflicts about lands ownership which might be a problem for the
ownership of electricity installations.
119
VI. Interesting links
COFACE (in French): http://www.coface.fr/Etudes-economiques-et-risque-pays/Colombie

Colombian households census (2005): http://www.dane.gov.co/index.php/poblacion-ydemografia/censos
Colombian institute of statistics: http://www.dane.gov.co/
Colombian Ministry of Energy: http://www.minminas.gov.co
French Foreign Affairs Ministry (in French): http://www.diplomatie.gouv.fr/fr/dossierspays/colombie/presentation-de-la-colombie/
2013 UNDPs report: http://hdr.undp.org/en/reports/global/hdr2013/download/
Country Profile (Millennium Development Goals):
http://interwp.cepal.org/perfil_ODM/perfil_Pais.asp?Pais=COL&Id_idioma=2
National Economic Profile:
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_economico.asp?Pais=COL&idiom
a=i
National Socio-demographic profile:
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_social.asp?Pais=COL&idioma=i
National Environmental profile:
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_ambiental.asp?Pais=COL&idioma
=i
120
I.2
Ecuador

- Electricity is strongly subsided by the State, making it not
profitable to develop independent energy systems without
extra incentives (subsidies, carbon market...).
- Energy is considered a strategic issue, which implies that all
projects related to energy should have the agreement of the
Ministry of Energy.
- The rate of electrification is very high: the Amazonian region
and the Northern Coast are the only places where there are still
high needs for rural electrification, but the areas are very
isolated and it is very costly to get there.
I.
General data
Population
In 2012, the estimated population is 15,5 million

inhabitants (ECLAC), among those 32% live in rural
area (UNDP, 2012). Households are on average
composed of 3,7 people (ECLAC, 2012).
Size : 283 560 km2

Capital : Quito (2,2 M inhabitants)
Main cities : Guayaquil (2,3 M), Cuenca (0,5 M)
Official language : Spanish (93% of population)
Main indigenous languages : quechua, shuara
Currency : $USD
In 2012, the GDP was US$ 87,5 billion, corresponding to US5639

per capita (ECLAC). In 2012, 32,3% of the population lived under
the poverty line according to the Economic Commission for Latin
America and the Caribbean - ECLAC (28,8% in urban areas and
38,9% in rural area, among those 12.9% are extremely poor) but
Ecuador is considered having a high development level with its 89
Human Development Index (HDI) ranking. In 2005, 21% of the
urban population lives in slums.
121
Ecuador is the most egalitarian Andean country since the 20% of the richest have only 12.5 times
more than the 20% poorest (quintile income ratio). Nevertheless, there are huge differences
between the regions, the Amazonian communities being very poor (except oil extracting
communities).
The country has an annual growth
which corresponds to the average of
other
Latin-American
countries.
Hydrocarbons lead the economy,
representing 38% of national budget
and 58% of exportations.
Annual growth
Inflation
Budgetary
balance/GDP
2010
2011
3.3%
3.6%
-1,6%
7.4%
5.4%
-1%
2012
(esti)
4.8%
5.1%
-2.5%
2013
(prev)
3.7%
4.5%
-2%
Ecuador: GDP by economic activity at current prices,

2012 (ECLAC)
Mining
Electricity, gas and water supply

Manufacturing
Construction
1%
10%
8%
16%
12%
16%
12%
13%
13%
Politics
Rafael Correa is the president of Ecuador since 2007
(reelected in 2009 and 2013) and the country is
relatively stable, apart from a coup attempt in 2010.
Correas 21st century socialism and his actions
towards the poorest sections of the population
(thanks to oil revenues) make him very popular in
Ecuador.
122
Ecuador is well integrated with the other Andean countries and has strong links with the ALBA
countries (left-oriented countries: Venezuela, Bolivia and Cuba) thanks to ideological closeness.
Relations with the United State are sometimes tense, even if the US is the first commercial partner of
Ecuador. Ecuador, in opposition to Peru and Colombia, refused to sign a free-trade agreement with
the European Union.
Geography
The country is divided into four main regions: the

coast, the highland, the amazon and the
Galapagos Islands. The Amazonian region is very
isolated from the rest of the country, with only a
few areas which are reachable by roads. Some
communities can be reached only with a small
plane (cost: around 700$) or by canoe. It is also
the region where people are the poorest, even if
there is oil in the underground.
In 2011, Ecuador produced 208 millions barrels of oil equivalent (boe) as primary energy production
and 68 million boe as secondary energy production. More than 90% of this energy is generated by oil
(50% is used by transportation). The importations were 22 million of boe, with 91% of petrol
derivate.
The country shows thus a high dependence to petroleum. In addition, the government subsidizes GPL
for households and oil: one liter of diesel oil can be bought for USD 0,27 (while it costs 5 times more
in the neighboring countries of Colombia and Peru), while GLP is sold at 0,1 USD/kg (1,35 USD/kg in
Peru and 1,13 USD/kg in Colombia) (ECLAC, 2012). These differences generate gas and oil smuggling
at the Colombian and Peruvian borders.
123
Ecuador: Energy Mix for primary

energy, 2011 (ECLAC)
Natural Gas
Petroleum
Cane products
Hydroenergy
1%
1% 4% 4%
Firewood
Ecuador: Energy Mix for

Gasoline/alcohol
Diesel Oil
Other secundary
Non-energy
Gases
Electricity
Kerosene
Fuel Oil
0%
14%
30%
19%
90%
7%
4%
18%
6% 2%
The electrification rate is very high in comparison with countries having the same level of
development, since 95,5% of the population has access to electricity (90% in rural areas, 60% in the
Amazonian region CEPAL, 2011). Nevertheless 120 000 rural families still lack electricity access. The
quality of electricity services and grid is satisfactory. Almost half of the electricity comes from
hydroelectrically resources, one third from thermal energies. Households with a consumption minor
to 130 kWh/month (110 kWh/month in the highlands) benefit from a special fare called dignity
fare, of USD 4 cents/kWh.
The Energy Ministry started a project to replace bulbs by efficient ones in 2 000 000 poor
households, corresponding to 6 000 000 bulbs. The project has been registered in the carbon market
under the Clean Development Mechanism in 2010 and importation of incandescent bulbs is now
forbidden.
National plans
In the constitution of 2008, the article 414 mentions that the State will take measures against climate
change. The Well-being National Plan, from 2013 to 2017, includes measures against climate
change. The government plans to have 90% of electricity coming from hydroelectricity by 2017 and
to extend electric coverage to achieve a 100% of electrification in all the country. So far, there is no
estimation of the number of households needing independent renewable energy systems
(GOMELSKY Roberto, p21).
124
III.
Climate change
Ecuadors population emits 1.7 ton of carbon dioxide per capita, which is low compared to developed
countries (for example, Belgian population is 9.8). But the carbon dioxide emissions per capita have
increased critically from 1970 to 2008,
with a 2.6% growth, reflecting the
extensive use of oil.
Ecuador: Land and soil,
2009 (ECLAC)
Deforestation
Ecuador has the highest deforestation

rate of the Andean countries: almost
one third of its forest disappeared
between 1990 and 2010, due to
agriculture development and the
presence of oil in the Amazonian
region.
IV.
Area of inland waters (ha)

Land area covered by forest (ha)
Arable land (ha)
Permanent crops (ha)
Permanent meadows and pastures (ha)
Other (ha)
Carbon market
3%
33%
35%
19%
5% 5%
The compliance market started in 2003 but is not very active in comparison with the other Andean
countries (except Bolivia). 25 projects are registered, 21 being from private companies and the
majority for large scale hydro projects. Among the public projects, one deals with efficient lighting
(efficient bulbs). 19 projects are currently waiting for registration.
With only one project registered on the voluntary carbon market (wind turbines in the Galapagos
island), Ecuador is almost inactive on this market. All the attention is attracted by the Yasuni Park, a
natural reserve in the Amazon with indigenous people, uncontacted tribes and oil. President Correa
asked $5.2 billion to the international community in order to protect the area and to avoid the
emission of 400 million tons of CO2 that would be generated by oil extraction. He also offered to
create a new market system, with Yasuni Guarantee Certificates" (YGCs). But the international
community eventually refused to pay the requested amount in August 2013. The future of the
reserve is uncertain at this date.
125
V.

Actors and projects
Main actors:
Ministry of Energy (MEER): there is a fund (called FERUM) dedicated to
fund projects to achieve the 100% of electrification.
FEDETA (Fundacin Ecuatoriana de Tecnologa Apropiada): the most
active NGO in energy fields. They frequently work with the MEER, European
Union, etc.
European Union: they implemented the EuroSolar project in 91
Ecuadorian communities, which ended in 2012. Everyone agrees that the results
were poor.
Inter-American Development Bank (IADB): they are about to start a solar
panels project in the Amazon, with MEER and FEDETA.
Engineers
approximately.
without
borders
(ISF):
they
electrified
500
families
The UNDP (United Nations Program for Development) in Ecuador is part of

the Sustainable Energy for All (SE4A) initiative, and is working with the Environment
Minister to create a national plan for climate change (adaptation and mitigation), to
be published on the beginning of 2014. They will fundraise both at a national and
international level and the plan should include measures for energy.
Lighting projects:
There are no projects aiming at providing specifically lighting to people: all projects deal with
access to electricity as a whole.
Renewable energy projects:
Hydro: There are a few initiatives in micro hydro for communities, but more as pilot project
(see Ingenieros sin Fronteras, FEDETA).
Wind turbines: no projects related to these technologies, unavailability of a wind map
(should be available soon though).
Biodigesters: only a few, for productive used and for biol (Care, Enerpro).
126
Solar: the most used technology for isolated communities (FEDETA, IADB, Energy Ministry,
etc). 0,2% of rural households have a solar panel according to the SEE4All report (2013),
representing approximately 2600 households.
Conclusions
Electricity and energy in general are strongly subsided by the State, making it not profitable to
develop independent energy systems (without subsidies). In addition, the rate of electrification is
very high: the Amazonian region and the Northern Coast are the only places where there are still
high needs for rural electrification, but the areas are very isolated, families are far away from each
other and it is very costly to get there.
Electrification projects are therefore very costly and generally of low scale. IADB (in partnership with
FEDETA and IICA) is currently launching a pilot project to electrify 12 Amazonian communities
through solar panels and to develop a methodology to scale-up this kind of projects.
127
Energy being of primary importance, it is the States will to centralize all initiatives on this matter.
Generally speaking, Ecuadorian government tends to centralize all projects (for example, a
governmental organ is being put up to manage all international cooperation funds) and all projects
related to energy require the Ministry for Energys agreement. The government worked only on the
compliance market so far but they are not opposed to entering the voluntary market.
VI.
Interesting links
COFACE (in French): http://www.coface.fr/Etudes-economiques-et-risque-pays/Equateur

Ecuadorian Ministry of Energy (in Spanish): www.energia.gob.ec
Ecuadorian National Committee of Electricity: http://www.conelec.gob.ec/
French Foreign Affairs Ministry (in French): http://www.diplomatie.gouv.fr/fr/dossierspays/equateur/presentation-de-l-equateur/
Potsdam Institute For Climate Change Research: http://www.pik-potsdam.de/cigrasp-2/countryfactsheets/ecuador.html
http://interwp.cepal.org/perfil_ODM/perfil_Pais.asp?Pais=ECU&Id_idioma=2
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_economico.asp?Pais=ECU&idiom
a=i
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_social.asp?Pais=ECU&idioma=i
National Environmental
profile:http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_ambiental.asp?Pais=ECU&
idioma=i
Ecuadorian households census (2010): http://www.ecuadorencifras.gob.ec/censo-de-poblacion-yvivienda/
GOMELSKY Roberto, Evaluacin rpida y anlisis de brechas en el sector energtico en Ecuador,
MEER, IADB andUNDP, 2013.
128
I.3
Peru
Peru had a sound economic growth during the last years but some
segments of the population remain very poor and lack access to
basic services such as electricity and lighting.
Peru is favorable to foreign initiatives and to the carbon market.
I.
General data
Population
The country has thus a good potential to use carbon mechanisms

for electricity and lighting projects. A lot of projects, with different
technologies, already exist but their size will not ensure
profitability on carbon market. On the contrary, projects on a midterm basis (2014-2015) could be eligible to carbon market,
especially the public bidding aiming at electrifying 500 000
households.
In 2013, estimated population is 30.3 million

inhabitants, among those 22.4% live in rural
areas (2012, UNDP). Households are on
average composed of 3.9 people (4.6 people
for the poorest rural households 2012,
ECLAC).
Size: 1 285 220 km2

Capital: Lima (8.2 M inhabitants)
Main cities: Piura (1,7 M), La Libertad (1.6M),
Cajamarca (1,4M), Puno (1,3M), Cusco (1,2M)
Official language: Spanish and indigenous
languages where they are majoritarian
Main indigenous languages: Quechua, Aymara,
Amazonian languages
Currency: nuevo sol (10 NS=2.5 euro)
In 2012, the GDP was USD 204 billion, corresponding to 6811

USD per capita. In 2012, 23.7% of the population lived under
the poverty line according to the Economic Commission for
Latin America and the Caribbean - ECLAC (14.5% in urban
areas and 50.8% in rural areas, among those 5.5% are
extremely poor) but Peru comes in 77th position in the
Human Development Index (HDI) ranking being therefore
considered a highly developed country. Nevertheless 36% of
the urban population lived in slums in 2011 (ECLAC,
estimation based on 2007 figures).
129
It is one of the most egalitarian Andean country since the 20% of the richest have only 13.5 times
more than the 20% poorest (quintile income ratio). Nevertheless, there are huge differences
between the regions: the Coast is much richer than the rest of the country (with the exception of one
Amazonian region benefiting from oil extraction).
Peru has one of the highest growth rate in Latin America and it is expected to remain high.
According to the International (Source: COFACE)
2011
2012
2013
2014
Monetary Fund, Peru is the eighth
(esti)
(prev)
Annual
growth
6.9%
6.3%
5.1%
5.4%
country which is the most prepared
3.4%
3.7%
2.8%
2.7%
worldwide in case of economic crisis, Inflation
Budgetary
2%
2.1%
0.2%
-0.2%
from a financial and monetary point
of view. Exportations are increasing balance/GDP
quickly and represented 26% of GDP in 2011, with the prevalence of mining products (60%). Peru is
the first silver producer worldwide, the second for cobber and zinc, the fifth for gold. It is also, with
Colombia, the first cocaine producer.
Peru: GDP by economic activity at current prices, 2011 (ECLAC)

Mining

Manufacturing
Construction
2%
7%
9%
7%
14%
15%
12%
19%
15%
Politics
Ollanta Humala is the president of Peru since 2011. His election was the result of the massive support
of the rural areas, with a political program focused on
poverty reduction and State intervention in economic
matters, through decentralization. Although the
business community feared the new president would
stop economic openness, he kept on with the
previous liberal economical model while starting new
social programs.
130
Since the beginning of his mandate, he has been facing two major challenges: mining conflicts and
fight against the heirs of the maoist Shining Path guerilla, who are still operating in the central
rainforest with drug trafficking (400 to 600 people).
Peru has a multilateral policy, with numerous free-trade agreements with Asian countries (Peru is
one of the funder of the Pacific Alliance), Europe, the United States and Russia. Despite borders
conflicts with Chile and Ecuador, Peru has good relations with the neighboring countries and is
engaged in economic cooperation with latin-american
countries.
Geography
The country is divided into three main regions: the

altiplano highland, the coast and the amazon.
The highlands are connected through satisfying roads but
a large part of the Amazon region is only reachable by
boat or plane.
In 2011, Peru produced 203 million barrels of oil equivalent (boe) as primary energy production and
113 million boe as secondary energy production. Almost 70% of the primary energy is generated by
gaz.
Peru: Energy Mix for

primary energy, 2011 (ECLAC)
Natural Gas
Petroleum
Firewood
Cane products
Hydroenergy
Other primary
Peru: Energy Mix for

Gasoline/alcohol
Electricity
Diesel Oil
Kerosene
Non-energy
1%
2%
8%
11% 2%
3%
18%
1%
9%
4%
13%
10%
67%
21%
30%
131
The electrification rate is low in comparison with the other Andean countries, since only 89.7% of the
population had access to electricity in 2011 according to ECLAC. In the cities, electrification is almost
completed (98.4%) in opposition to the countryside where only 64.2% of the population has access
to electricity. In Peru, 3.1 million people still lack electricity, among those 2.4 million live in rural
areas (578 470 families43) according to ECLAC statistics.
In 2010, the Peruvian government started to install off-grid systems instead of extending the grid to
remote communities, since grid extension was too costly (average of 1500$ for each family). The
Electricity Social Compensation Fund (FOSE) subsidizes the cost of energy for rural community,
covering 4/5 of the costs. In Peru, the DGER (Rural Electrification Direction) presents public bidding
for energy. There was one for the jungle (15 000, Q-Energy: http://www.qenergyperu.com) and one
is currently presented, in order to electrify 500 000 families44.
National plans
Peru has established three Voluntary Agreements for 2021:

1. Zero net deforestation of tropical primary forests.
2. Clean energy matrix involving renewable energies not less than 40%.
3. 100% Comprehensive treatment of urban solid waste.
In addition, Peru will host the next worldwide conference on climate change (UNFCCC) in 2014.
Peru would like to reach a total electrification rate of 95.8% by 2022 (National Plan of Rural
Electrification, 2013-2022).
III. Climate change

43
Considering the average size of rural households from the second poorest quintile (4.2 people in 2012, ECLAC
statistics).
44
In September 2013, the Peruvian Energy Ministry published a solicitation of tender to electrify up to 410 000
households, 7530 health centers and 2100 schools through solar panels (minimum: 149 000 households, 2260
health
centers
and
630
schools,
see
sSubasta10042014.pdf). Up to 3 companies can win the tender; each of them would be responsible for one
region (Northern, Center or Southern Peru).
132
Perus population emits 1.4 ton of carbon dioxide per capita, which corresponds to the average of
other Andean countries such as Colombia or Bolivia. Carbon dioxide emissions per capita have grown
moderately from 1970 to 2008, with a 0.1% average annual growth.
Deforestation
Half of Peru is covered by the rainforest. Peru lost 3%
of its forest between 1990 and 2010, which is less
than Ecuador and Bolivia and as much as Colombia.
IV.
Carbon market
86 projects are currently registered with UNFCCC; 64

of them deal with renewable energy (almost 50% of
projects are related to hydro). Peru is the most active
country for compliance market after Chile even if the
country entered carbon market quite late: Peru
legally entered carbon mechanisms in 2005, but
started to be active in 2007.
Peru: Land and soil,

2009 (ECLAC)
Arable land
Permanent crops
Other
0%
30%
53%
13%

Peru has 18 projects registered on voluntary carbon
market, 10 of them are related to rainforest
protection but none of them deals with energy.
V.
1% 3%

Actors and projects
Main actors:
Peruvian Energy Ministry: they subsidize energy for rural population and
launched in August 2013 a public bidding to electrify 500 000 households.
European Union: they implemented a huge project in 130 communities,
which ended in 2012 (EuroSolar) with a 6.3 million euros budget. The current
priorities of the UE in Peru are governance and drug trafficking. But in 2014, a new
call for proposals will be launched, which might include energy projects.
133
Inter-American Development Bank (IADB): energy is part of their priorities

until 2016, with a focus on energy efficiency at a large scale and hydroelectricity
development.
SNV in linked to the Dutch cooperation and works mainly with biodigesters.
In the jungle, they implemented two huge biodigesters (79m each), working with
two generators, starting in October 2012 (16kW).
GIZ, the German cooperation agency, works in energy mainly through the
Energizing Development EnDev Peru program. They made key studies on solar
lanterns with the National University of Engineering.
The Japan International Cooperation Agencyworks with the Peruvian
government on several issues, including electricity access. They developed 3
electricity programs (PAFE - Program to amplify the electric border) focused on grid
extension/densificiaton. The 4th PAFE is currently getting defined and might include solar
panels installations.
Soluciones Prcticas: in 5 years, they provided access to basic services to
more than 50,000 people in Peru and Bolivia, with wind turbines, solar panels,
micro hydro. They started to work on biodigesters along with SNV.
Acciona Microenergia Peru:social company, they objective was to bring
access to solar energy to 1700 families in Cajamarca in 2013.
PowerMundo is a social company, created in the US and dedicated to
provide solar products such as solar lanterns, especially in Peru.
Entelin is a Peruvian company specialized in solar energy. In 2009, they
took part in the project a Laptop for every child and installed 34 500 solar panels
for a total power of 345 Kwp (1 solar panel = 10w).
Bright Sun Power sells Sundaya solar lanterns. They sold 2000-3000 lanterns
in Peru. They work in Ica and Huancavelica with the GIZ.
Lighting projects:
Efficient bulbs were promoted a long time ago, it is not very common to find normal bulbs
in Peru. LED bulbs are also available in supermarkets for 60 soles (15), but they are still
expensive for poor people. LED are starting to be used for public lighting.
Solar lanterns: opinions from experts are very diverse. While the GIZ actively promotes this
technology for being cheap (140 soles 40 euros) trhough ENDEV, efficient, movable, easy to
134
use and maintenance free, other actors think they are too expensive for poor people. the
private sector of solar lanterns is getting organized with the support of Endev program to
disseminate this technology

Hydro: it works when the houses are close to each other but unfortunately house dispersion
is too high in most communities that lack electricity today. Water turbines directly placed in
the river stream do not work well because of wood fragments, carried on by the river, which
can damage the installation.
Wind turbines: The government would like to develop wind energy but it is complicated
because of wind strength (no reliable maps available). In Peru, Piura is the only region where
wind turbines are working.
Biodigesters: there are only a few biodigesters in the country but SNV and Soluciones
Prcticas are waiting for funding from the World Bank to launch a 6000 biodigesters project.
Solar: Peru has a very high solar potential in the highlands. It is estimated that more than
16000 rural households have solar panels45.
45
MEIER Peter, TUNTIVATE Voravate, BARNES Douglas and al,Peru: National Survey of Rural
Household Energy Use - Special Report, Washington: The World Bank Group, Energy Sector
Management Assistance Program, 2010.
135
Conclusions
Peru had a sound economic growth during the last years but some segments of the population
remain very poor and lack access to basic services such as electricity and lighting.
Peru is opened to foreign initiatives and to the carbon market.
The country has thus a good potential to use carbon mechanisms for electricity and lighting projects.
A lot of projects, with different technologies, already exist but the current volumes are not enough to
ensure profitability on carbon market.
Future opportunities with carbon markets will rely on:
- The development of solar lanterns market.
- The public bidding for rural electrification through solar panels.
COFACE (in French): http://www.coface.fr/Etudes-economiques-et-risque-pays/Perou

Peruvian Ministry of Energy: www.minem.gob.pe
Peruvian households census (2007): http://censos.inei.gob.pe/cpv2007/tabulados/#
Peruvian Institute of Statistics: www.inei.gob.pe
French Foreign Affairs Ministry (in French): http://www.diplomatie.gouv.fr/fr/dossierspays/perou/presentation-du-perou/
http://interwp.cepal.org/perfil_ODM/perfil_Pais.asp?Pais=PER&Id_idioma=2
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_economico.asp?Pais=PER&idioma
=i
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_social.asp?Pais=PER&idioma=i
profile:http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_ambiental.asp?Pais=PER&i
dioma=i
136
I.4
Bolivia

Bolivia is the less electrified country in the Andean region.
The government plans to electrify the whole population by
2025, mainly through grid extension (grid energy is cheap
thanks to gas).
Nevertheless, there are several projects that could be eligible

for carbon market, even if the government is reluctant to
enter carbon market mechanisms.
II.
General data
Population
In 2012, the population is estimated at 10

million inhabitants (National Census), among
those 33% live in rural area (2012, UNDP).
Households are on average composed of 3.8
people (5 people for the poorest rural
households 2011, ECLAC).
Size: 1 098 580 km2

Capitals: administrative capital: La Paz (900 000
inhabitants, 1,7 M with suburbs); constitutional
capital : Sucre (250 000 inhabitants)
Main cities: Santa Cruz (1, 5 M), Cochabamba
(600 000)
Official language: Spanish and 36 indigenous
languages
Main indigenous languages: quechua, aymara
Currency: boliviano (10 BOL=1 euro)
Two thirds of its population being considered

indigenes, Bolivia has the highest percentage of indigenous people in South America
In 2012, the GDP was USD 27 billion, corresponding to 2 625 USD per capita. In 2011, 36.3% of the
population lived under the poverty line according to ECLAC (29.6% in urban areas and 55.4% in rural
area, among those 18.7% are extremely poor) but Bolivia comes in 108 th position in the Human
Development Index (HDI) ranking being therefore considered a medium developed country In 2009,
47% of the urban population lived in slums.
137
It is the less egalitarian Andean country since the 20% of the

richest have 27.8 times more than the 20% poorest (quintile
income ratio). Nevertheless, there are huge differences
between the regions, the Andean communities being very poor.
The eastern part of Bolivia is far richer.
(Source: COFACE)
2011
2012
5.2
2013
(esti)
5.4
2014
(prev)
5
Annual growth
5.2
Inflation
9.9
4.5
4.8
4.1
Budgetary
balance/GDP
0.8
1.8
1.5
1.4
The country is quite dynamic, thanks to a strong internal demand, stimulated by public expenses for
social programs and public investments in infrastructures. But generally speaking, exportations are
not diversified and remain dependent of international commodities prices (hydrocarbons and mining
outputs).
Bolivia: GDP by economic activity at current prices, 2012

(ELAC)
Manufacturing
2%
10%
11%
12%
20%
3%
11%
18%
13%
138
Politics
The country has been very politically unstable until 1982 (160
coups since the independence in 1825). Evo Morales is the
president of Bolivia since 2005 (reelected in 2009): he is the first
indigenous president of Bolivia. He launched a democratic and
cultural revolution in 2005, based on nationalization of
hydrocarbon and a new constitution in 2009 to guarantee
indigenous peoples rights (2/3 of the population). Nevertheless,
since his election he had to cope with several strikes and
protests, sometimes violent ones: strikes for salary raise from miners, teachers, the army, etc.;
protests from Amazonian indigenous people against the construction of a road through the jungle. As
a consequence, Evo Morales started in December 2011 a huge national debate to improve the
economic well-being in the three coming years. Next elections will be held in October 2014: Evo
Morales is likely to modify the constitution and stand for another four-year term as President. The
opposition parties are weak and disorganized.
Concerning Foreign Affairs, Bolivia is very close to Venezuela through ALBA (Bolivarian Alliance) and
has a very tense relationship with the United States, with an anti-capitalist and anti-US extern
policy. The US cooperation agency (USAID) was expelled from Bolivia in May 2013. Bolivia got closer
to Iran and the Palestinian state and stopped relations with Israel. However, Bolivia signed in 2011 a
bilateral agreement with the US, concerning above all drug trafficking. With the European Union,
Bolivia has a pragmatic cooperation according to French Ministry of Foreign Affairs even if the
country refused to sign a free-trade
agreement with the European Union.
Bolivia got 84 million from the EU in
2010 for programs related to drug
trafficking, water, sanitation access and
exportations support.
Geography
The country is divided into four main
regions: the altiplano highland, the
Andean valleys, the amazon and eastern
lowlands.
The administrative capital, La Paz, is
located at 3600 meters above the sea (La
Paz airport is located at 4000 meters
above the sea), making it the highest
capital worldwide.
139

The country produces 131million barrels of oil equivalent. 75% of this energy is generated by gas.
Bolivia: Energy Mix for primary energy,

2011 (ECLAC)
Natural Gas
Petroleum
Cane products
Hydroenergy
4% 2% 0%
Bolivia: Energy Mix for secundary energy,

2011 (ECLAC)
Firewood
Gasoline/alcohol
Electricity
Other primary
Diesel Oil
Other secundary
Kerosene
Non-energy
Charcoal
0%
6% 1%
7%
12%
23%
13%
75%
15%
22%
20%
The electrification rate is very low compared to the other Andean countries since only 82% of the
population had access to electricity according to the last national census (2012). In rural area, almost
half households do not have electricity access (the rural electrification rate is 57,80%, representing
410 000 families without electricity).
Almost one quarter Bolivians still used wood as a first energy source. In rural areas, biomass
(especially woods) represents 80% of energy consumption: families use in average only
25kWh/month. 50% of rural households who have access to electricity have a 32 kWh/month
consumption which is used for lighting, radio and a few hours of television. This consumption is very
low compared to urban families, who consume 86% more electricity than rural families.
140
Rural families pay proportionally more than urban families for electricity (US68$ /year in the
highlands, US107$/year in the valleys, US114$/year in the plain) for using inefficient energy sources
such as traditional batteries, candles, etc.
National plans
There is a strong commitment to electrify the country, with the Electricity Program to live with
dignity aiming to energy for all by 2025. This program is coordinated by the Vice-Ministry of Energy
(VMEEA). To achieve this ambitious objective, Bolivia is receiving help from the World Bank, from the
Global Partnership Output Based Aid (GPOBA), German cooperation from GTZ. The Ministry of
Energy estimated that 10% of rural households should be electrified through renewable energy (Plan
de Universalizacin, 2010, p25).
III. Climate change
Bolivia presents itself as a protector of mother earth (pachamama), which is a vision aimed at
protecting the environment and respecting the ancestors. Bolivia promoted recognition of the right
to clean water and sanitation, adopted by the UN General Assembly in 2010.
Bolivias population emits 1.3 ton of carbon dioxide per capita, which is low compared to developed
countries (for example, Belgian population emits 9.8 tons per capita). But the carbon dioxide
emissions per capita have increased critically from 1970 to 2008, with a 2.2% growth.
141
Deforestation
Bolivia: Land and soil, 2009 (ECLAC)

Area of inland waters (ha)
Bolivia has one of the highest

deforestation rate among the
Andean country: almost one tenth
of its forest disappeared between
1990 and 2010.
IV.
Land area covered by forest (ha)

Arable land (ha)
Permanent crops (ha)
(ha)
Carbon market
13%
1%

30%
52%
A few years ago Bolivia was among

0% 4%
the most advanced countries as
regards the compliance market, especially for projects related to forest protection. As a matter of
fact Bolivia had the greatest forest protection project (Plan de Accin Climtica Noel Kempff) and
was one of the first countries to get financial support from the World Bank for a Forest Carbon
Partnership Fund.
Nevertheless in 2009 the government radically changed its strategy with carbon system withdrawal
and the carbon market is almost a taboo subject in Bolivia today. Evo Morales claimed that our
planet is not for sale. In 2010, Bolivia organized Conference on Mother Earth and the Rights of
Nature in Cochabamba and signed the Tiquipaya peoples agreement, to reject carbon market.
To replace carbon market, Bolivia offered two alternatives:
- Creation of an Integral Finance Mechanism (IFM), funded with 1% of industrialized
countries GDP and international companies tax, to help developing countries adapt
to climate change.
- Ecological debt: make rich countries offset their past emissions.
The organization in charge of registering carbon projects was dismissed and today, there is no
compliance market in Bolivia. The definition of the political orientations on this matter is getting
defined by the Mother Earth committee, an organ of the Foreign Affairs Ministry.
142
Bolivia has only 10 projects registered on voluntary carbon market, among those only one deals with
renewable energy (none dealing with electricity access).
V.
Legal frame and actors related to RE and lighting

Actors and projects
Main actors in energy:
European Union: they implemented a vast project in 59 communities,

which ended in 2012 (Eurosolar), with a 2,6 million budget (2,24 million from
the EU).
Inter-American Development Bank (IADB): had several projects related to
energy.
Hydrocarbon and Energy Ministry: the Ministry works towards energy for
all, trough the Vice-Ministry of Energy (VMEEA).
Soluciones practicas: they work in Bolivia since 1999 and have several
projects related to energy.
Energtica: they work with MyClimate on water solar heaters. This NGO
was created 20 years ago and installed +20 000 solar panels for families and more
than 2500 solar panels for schools/health centers.
Endev is a project supported by international cooperation agencies from
several countries (Germany, Australia, UK, Norway) working on access to energy and
especially lighting, biomass, cook stoves. The program is managed by GIZ (german
cooperation agency).
GPOBA / World Bank / Hydrocarbon Ministry: they installed solar systems
in more than 7000 families a few months ago and plan to install more.
143
Lighting projects:
There are a lot of lighting projects, using Phocos models solar lanterns. Approximately 15000
solar lanterns have been sold or given and there are projects to distribute 20 000 solar
lanterns more.
Hydro: Approximately 2000 families have been electrified through this technology.
Wind turbines: no projects related to this technology, except some Euro Solar centers. A
national wind map is under construction.
Biodigesters: GIZ installed 600 biodigesters in 2012 but for cooking. No biodigester for
electricity generation has been reported.
Solar: the most used technology for isolated communities (IADB, Energy Ministry, World
Bank, etc). Approximately 32 000 families have been electrified this way (National Census,
2012) and international cooperation plan to electrify 10 000 families more next year.
144
Conclusion
Bolivia has the lowest electrification rate in the Andean region, with 410 000 rural people lacking
electricity access. The government plans to electrify the whole population by 2025, mainly through
grid extension (grid energy is cheap thanks to gas).
Being the poorest country of South America, Bolivia receives support from the international
community to lead electricity and lighting programs (Endev program coordinated by GIZ, World Bank,
IADB, GPOBA, etc) although different political views led to the eviction of the US cooperation agency
(USAID) in 2013. Many NGOs and private companies are also working for rural electrification, with
independent projects or taking part in call for proposals from the State. The biggest projects for
electricity and lighting access are gathered under the program Electricity to live with dignity,
managed by the Bolivian Ministry of Energy.
Solar panels is the most popular technology, even if solar lanterns are getting more and more
widespread, both in private markets and in development projects: since many rural Bolivian
households have a low electricity consumption (with a few lamps, a radio and a cell-phone), solar
lanterns with USB chargers are sometimes enough to answer their needs. Besides, their low cost
compared with solar panels and their ability to replace flashlights with non-rechargeable batteries
made them a convenient option for farmers. Micro-hydro projects are relatively well-developed as
well. A few wind-turbines, especially with the European project Euro Solar, have also been installed.
Regarding carbon markets, the government is reluctant to enter carbon markets (both voluntary and
compliance markets): Bolivia is seeking alternatives to the mainstream positions related to Kyoto
process. Thegovernment position concerning voluntary market could evolve in the coming months.
COFACE (in French): http://www.coface.fr/Etudes-economiques-et-risque-pays/Bolivie

Bolivian Ministry of Energy: www.hidrocarburos.gob.bo
French Foreign Affairs Ministry (in French): http://www.diplomatie.gouv.fr/fr/dossierspays/bolivie/presentation-de-la-bolivie/
Potsdam Institute For Climate Change Research: http://www.pik-potsdam.de/cigrasp-2/countryfactsheets/bolivia.html
http://interwp.cepal.org/perfil_ODM/perfil_Pais.asp?Pais=BOL&Id_idioma=2
145

http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_economico.asp?Pais=BOL&idiom
a=i
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_social.asp?Pais=BOL&idioma=i
profile:http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_ambiental.asp?Pais=BOL&
idioma=i
Bolivian households census (2012) :
http://www.censosbolivia.bo/binbol/RpWebEngine.exe/Portal?&BASE=CPV2012COM
146
I.5
Chile

Needs for electrification in Chile do exist but are far lower
than in other countries.
As a consequence, there are and there will be only small size
projects, whose profitability on carbon market is far from
being warranted.
I.
Population
In 2013, the population is estimated at 17.4

million inhabitants, among those 10.6% live in
rural areas (2012, UNDP). Households are on
average composed of 3.4 people (3.9 people for
the poorest rural households 2011, ECLAC).
General data
Size: 756 102 km2
Capital: Santiago (7.2 M inhabitants)
Main cities: Valparaiso (0.3M), Concepcin
(0.2M), Antofagasta (0.3M)
Official language: Spanish
Main indigenous language: Mapuche
Currency: peso (1000 pesos = 1,6 )
In 2012, the GDP was USD 268 billion, corresponding to 15372

USD per capita. In 2011, 11% of the population lived under the
poverty line according to theEconomic Commission for Latin
America and the Caribbean - ECLAC (11.3% in urban areas and
8.7% in rural areas, among those 3.1% are extremely poor). It is
by far the richest Andean country and the only country where
there are relatively more poor people in the cities than in the
countryside. Chile comes in 40th place in the Human
Development Index (HDI) ranking, following Poland amongst the
very highly developed countries. Nevertheless 9% of the urban
population lived in slums in 2005.
147
Comparing to the other Latin American countries, Chile is as equalitarian as Peru, the 20% of the
richest having 13.5 times more than the 20% of the poorest (quintile income ratio). But Chile has the
highest level of income inequality among the Organization for Economic Cooperation and
Developments (OECD) 34 member countries.
Chiles economy is strong and the country is

characterized by economic openness
5.9%
5.6%
(numerous free-trade agreements), cobber
3.3%
3%
and agricultural products exportation. GDP
1.3%
0.6%
growth rate is high and public debt is low.
Thanks to its great economic situation, Chile
joined the OECD in 2010, becoming part of the developed country worldwide group.
(Source:
COFACE)
Annual growth
Inflation
Budgetary
balance/GDP
2011
2012
2013
(esti)
4.2%
1.8%
-1%
2014
(prev)
4.1%
3%
-0.9%
Chile: GDP by economic activity at current prices, 2012

(ELAC)
Mining
Electricity, gas and water supply

Manufacturing
Construction
4%
7% 2%
25%
8%
14%
17%
11%
12%
148
Politics
Sebastin Piera won a historic election in 2010: he was

the first president from the right wing since 1958. He
symbolized a modern right wing, which opposed to General
Augusto Pinochet in 1988 and managed to gather the major
right political parties. Nevertheless, the chamber of
Deputies and the Senate were led by left wing parties.
Sebastin Piera was an economics professor and banker,
who had begun to amass a fortune introducing credit cards
to Chile.
The government highlighted the good economical results of the country (high GDP growth, low
inflation, high investments) but Sebastin Piera had to face two major challenges during its
mandate:
In February 2010, the country suffered a violent earthquake (8.8 on Richter scale, 526
victims and 800 000 people lost their house: damages are evaluated to USD 30 billion,
corresponding to 17% of GDP). Reconstruction and rehabilitation lasted longer than
expected.
Since 2011, student movement Chilean Spring protests against the high education costs.
New presidential elections were hold in November 2013: the two main
candidates were Michelle Bachelet (left wing) and Evelyn Matthei (right
wing) Chiles constitution forbids presidents from serving consecutive
terms. The new government of Michelle Bachelet, a pediatrician, started in
March 2014, focusing on increasing corporate taxes, expanding access to
higher education and overhauling the 1980 Constitution, which dates to the
dictatorship of Pinochet. It is the second mandate of Michelle Bachelet,
after ending the 2006-10 presidency with 84 percent approval ratings
Apart from the political program of the two main candidates, their position
during Pinochets dictatorship was a key element to gain votes: while Michelle Bachelet was tortured
for her political views, Ms. Matthei voted in favor of General Pinochet in the 1988 plebiscite.
Regarding Foreign Policy, Chile is committed to increase multilateralism and free-trade agreements.
Chile has good relations with the neighbor countries, even if there are still territorial tensions with
Peru and Bolivia. Chile has economic agreements with the Asia-Pacific zone (1st client of Chile and
Chile is a member of the Asian-Pacific Economic Cooperation - APEC since 1994), with the US (1st
investor in Chile) and the European Union (association agreement in 2002).
149
Geography
The geography of Chile is extremely diverse as the country
extends from latitude of 17 south to Cape Horn at 56: from north
to south, Chile extends 4,270 km, and yet it only averages 177 km
east to west.
The North of the country is very dry, with the Atacama Desert. The
mid-part of the country is more temperate, even if it is close to the
Andes Mountains with permanent snow cover. The south is one of
the rainiest areas in the world and contains large expanses of
pastures.
II.
Energy and Electricity

The country produced 65 million barrels of oil equivalent in 2011

as primary energy production and 115 million boe in 2011 as
secondary energy production. Biomass in the form of firewood
mostly used for heating and cooking accounts for 57% of energy
consumption in Chiles residential sector, with potentially adverse health impacts. The market for
firewood is largely informal, thus posing particular regulatory and policy challenges.
Chile: Energy Mix for primary

energy, 2011 (ECLAC)
Natural Gas
Petroleum
Firewood
Other primary
Hydroenergy
Coal
3%
16%
21%
Chile: Energy Mix for

Gasoline/alcohol
Diesel Oil
Other secundary
Non-energy
Gases
2%
3%
4%
0%
Electricity
Kerosene
Fuel Oil
Coke
0%
9%
4%
16%
4%
6%
33%
57%
22%
150
In addition, Chile is highly dependent of importations in the energy sector: 75% of the energy comes
from the importation of fuel, whereas energy demand is expected to rise of 47% by 2020.

Chile has the highest rate of electrification among the Andean countries: in 2011, the electrification
rate reached 98.9% (99.6% in cities and 94.1% in rural areas), with only 192 000 people without
electricity, among those 109 000 live in rural areas (29 500 families46) according to ECLAC statistics.
This is the result of an ambitious electrification program, including joint financing, decentralization,
development of appropriate technologies and competition, started in the 1980s and called the
National Program for Rural Electrification (REP). This program has been very successful considering
that in 1999; only 76% of the population had access to electricity.
National plans
Chile wants to increase the use of renewable energy to reduce its dependence upon importation
and to provide energy to the mining companies, which consume 18% of electricity and represent 19%
of GDP (see IADB, Inter-American Development Bank). Chile has launched a huge solar project with
IADB (26MW, US$ 41,4 million) to double the amount of renewable energy in the country, to be
concluded at the end of 2013.
Concerning the reduction of emissions, Chile plans to decrease by 20% CO2 emissions by 2020
(baseline: 2007).
There are no national plans for electricity access, even if the Division of access and energy equity
from the Energy Ministry has a few electrification programs through solar panels, wind turbines and
diesel generators.
46
Considering the average size of rural households from the second poorest quintile (3.7 people in 2011, ECLAC
statistics).
151
III. Climate change

Chile population emits 4.4 ton of carbon
dioxide per capita, which is low compared
to developed countries (9.8 tons per
capita emitted in Belgium) but very high
in comparison to the others Andean
countries. In addition, the carbon dioxide
emission per capita has increased quickly
from 1970 to 2008, with a 1.4% annual
growth.
Chile: Land and soil,

2009 (ECLAC)
2%
Arable land
Permanent crops
Other
Deforestation
21%
Chile is the only Andean country where

the forest area has increased between
1990 and 2010, with a 6.3%
augmentation. In this aspect, Chile is close
to developed countries (France has for
example increased the forest area of 10%
during the same period).
2% 1%
56%
18%
IV. Carbon market

With 98 projects registered on the compliance market, Chile is the most mature Andean country in
this market. 70% of these projects deal with renewable energy, especially hydroelectricity.
With 16 projects registered on voluntary carbon market Chile is the most active Andean country on
this topic. Most of these projects are related to hydroelectricity.
Furthermore, Chile created in 2009 the Santiago Climate Exchange (SCX), which is the first one of
this category in Southern Hemisphere. SCX was the third largest voluntary offset purchase platform
in 2012. Chile has also an agreement with the carbon standard VCS.
152
V.

Actors and projects
Main actors:
The Ministry of Energy primarily focuses on renewable energies at a large scale and
energetic dependence decrease. They also have a Center about Renewable Energy (CER) and
a section dedicated to energy access, which implements a few electrification projects, mainly
for schools (Division of access and energy equity).
Inter-American Development Bank (IADB): The IADB is the leading multilateral
agency in Chile, accounting for 81% of the countrys total multilateral debt. They promote
renewable energy projects (large scale).
GIZ, the German cooperation agency, started a project in 2004 with the Chilean
Ministry of Energy to develop huge renewable energy projects.
Desafio Levantemos Chile is a Chilean NGO created after the 2010 earthquake in
Chile. They worked for the reconstruction of households and are now starting renewable
energy projects in the North of Chile (Aymara communities). They would like to expand their
activities and are actively fundraising to do so.
153
Lighting and renewable energies projects:

Given the high percentage of households electrification, projects focus especially on schools
electrification.
Hydro: 32 micro centrals have been implemented since 1992 by BMG.
Solar: the government and Desafio Levantos Chile plan to electrify a hundred schools
through solar panels.
Wind: 16 schools should be electrified with wind turbines in the near future.
Biodigester for electricity production: no projects have been registered.
Lighting: no projects have been registered.
Conclusions
Given the high electrification rate in the country (only 30 000 rural people lacking electricity access),
programs providing access to energy and lighting are small in Chile. Some areas in the country are
still lacking electrification such as the North of Chile (Aymara communities) and the South (Mapuche
communities), as well as some islands.
As far as our study goes, only one NGO working on rural electricity access for the poorest has been
identified, with recent activities (electrification projects started in 2013). The Ministry of Energy has a
department for rural electrification with a few projects. Association regrouping actors of solar and
hydro do exist but are not focused on electricity access for poor people.
Programs focusing on change of the energy mix to promote renewable energies and energy
efficiency are the priority for the government, to balance the country dependence on electricity
importations.
COFACE (in French): http://www.coface.fr/Etudes-economiques-et-risque-pays/Chili

Chilean Ministry of Energy: www.minenergia.cl
French Foreign Affairs Ministry (in French): http://www.diplomatie.gouv.fr/fr/dossierspays/chili/presentation-du-chili/
154

http://interwp.cepal.org/perfil_ODM/perfil_Pais.asp?Pais=CHL&Id_idioma=2
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_economico.asp?Pais=CHL&idioma
=i
http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_social.asp?Pais=CHL&idioma=i
profile:http://interwp.cepal.org/cepalstat/WEB_cepalstat/Perfil_nacional_ambiental.asp?Pais=CHL&i
dioma=i
National Institute of Statistics: www.ine.cl
155
II.
Technological sheets
II.1
III.
Solar panels
Description and History
A solar panel is a set of solar photovoltaic modules electrically connected and mounted on a
supporting structure. A photovoltaic module is a packaged, connected assembly of photovoltaic cells.
Solar modules use light energy (photons, not thermal energy as other systems do) from the sun to
generate electricity through the photovoltaic effect. This effect was discovered in 1839 by the French
physicist Alexandre-Edmond Becquerel (Nobel Prize Henri Becquerels father). A photovoltaic cell is
made of several layers of semiconductor material. The most commonly used currently are
monocrystalline silicon, polycrystalline silicon, amorphous silicon, cadmium telluride and copper
indium selenide sulfide. By far, the most prevalent bulk material for solar cells is crystalline silicon
(abbreviated as a group as c-Si), also known as "solar grade silicon".
In rural off-grid regions, solar energy is generally used at three different scales:
-
Pico and micro photovoltaic: small scale panels (< 10 Watt-peak) mainly used to power small
lights.
Solar Home Systems SHS (30 to 120 Wp) powering a single household.
Community Solar Systems (>200 Wp) powering schools, small hospitals, energy hubs.
156
Unlike wind turbines, there is no financial

advantage of centralizing all solar panels into a
single large solar plant providing electricity to an
entire village through a mini-grid (there are no
economies of scale), but a solar mini-grid can be
interesting for batteries issues (possible to have
larger batteries and for consumer to offset their
electricity consumption).
This document will focus on small size solar
systems47 (Solar Home Systems and Community
Solar Systems) for Technical Sheet: Lighting Solar mini-grid in Ecuador
already covers the pico and micro photovoltaic
devices.
IV.
Implantation
As the sun shines everywhere on Earth, some level of solar energy resources exist everywhere.
However, that does not mean that solar energy resources can be developed at any location.
The implantation of a solar panel can be more or less relevant depending on the local solar radiation
and the temperature in the project location. The following figures are maps of daily Peak Sun Hours 48
in the World and in South America.
47
The only difference between Solar Home Systems and Community Solar Systems being the kind of building
that benefits from the electricity provided, we shall from now on make no difference between the two and
speak only of SHS.
48
Peak Sun Hours: PSH is the number of daily hours during which radiance is over 1000 W/m.
157
Except southern Chile, Andean countries have

very high solar resources. The Peruvian coast
and a large part of Ecuador have less solar
potential, as well as the eastern part of Bolivia.
Generally speaking, there is more solar
potential in the highlands than in the
rainforest.
The cool temperatures in the highlands will
positively affect the efficiency of the solar
panels.
The solar resources of every month of the year
need to be examined for certain locations can
receive up to three times more solar energy in
summer than they do in winter.
It is important to make sure that the longest period without sun in the project area is shorter
than a week. It is often the case in the highlands, but on the Peruvian coast near Lima for
instance there is a two month period without sun (August and September) although the rest
of the year is very sunny.
V.
Technical Aspects
1. Calculating the available energy
A solar panel is often characterized by its peak power, it is the power delivered by the panel under
standardized conditions:
Temperature of the photovoltaic cells: 25C
Solar irradiance: 1000 W/m
Normal light incidence (meaning perpendicular to panel)
These conditions being quite optimistic the effective power of a solar panel is generally lower than
the peak power.
The efficiency of a solar panel is the power delivered divided by the power of the incident radiation
on the panel, under standard conditions: efficiency is usually between 5% and 16%. Efficiency being
negatively correlated to temperature the implantation of solar panels in the highlands is relevant.
Solar resources are easier to evaluate than wind or hydro resources, but a preliminary study has to
be made in order to fit the expected power supply to the power demand.
2. Installing a solar system
SHS are made to provide electricity autonomously and at any time. Power demand is generally high
in the morning and after nightfall when light and hot water are needed. The electrical energy
158
collected in the daytime must therefore be stored in a battery to provide energy when there is no
sun. A battery is a device that converts electrical energy into chemical energy and vice versa.
A battery is characterized by its:
Capacity: the amount of electrical charge it
can deliver at the rated voltage. Capacity is
measured in units such as Amp-hour (Ah).
Nominal Voltage: the reference voltage of
the battery. The battery is discharged when
the voltage reaches the cut-off voltage.
Generally cut-off voltage = 98% of
nominal voltage.
The total charge delivered by a battery is higher if
the output current is low: efficient low power Sonnenschein battery in Alto Peru, Cajamarca
devices must therefore be used to optimize battery
autonomy (Peukert effect).
Lead-acid batteries are normally designed to work at 25C, high temperatures considerably increase
the autodischarge phenomenon and therefore decrease its capacity. Low temperatures dont
generally affect the battery efficiency. In humid regions the use of open batteries is recommended.
The life span of a battery critically depends on the way it is used; a regulator is therefore
indispensable to protect the battery from overload and profound discharge.
Batteries deliver direct current;
an inverter can be used to turn
it into alternative current which
is required to power certain
devices.
To correctly dimension the solar
panel only the most unfavorable
month (in terms of solar
radiance) must be taken into
account. As for the battery, the
autonomy49 required D, the daily
load required L and depth of
discharge DOP must be taken
into account. The capacity of the
battery C = L * D / DOP.
SHS technical scheme

49
In Andean countries autonomy is generally between 3 and 5 days
159
The operating of a solar device is quite simple. Beneficiary must simply understand and follow the
indications of the regulator, not try to force the use of the battery and turn the inverter off at night.
Battery has to be protected from sunlight and humidity by putting it in a well-ventilated spot. Open
batteries need to be filled twice a year with distilled water.
VI.
Costs
Estimation of installation costs50 of Solar Home Systems in the Andean Regions, based on a Peruvian
project:
Peak power
30 W
50 W
100 W
Price
$ 650 (including two lights and cables)
$ 900 (including three lights and cables)
$ 1500 (including five lights, cables and inverter)
Prices are much lower in countries such as Bangladesh (a 50 W SHS costs $ 420) where the market is
much larger (over one million SHS were already installed) and the fact that an increasing share of
sold devices are locally manufactured.
The following table gives an approximation of the capital, operating and maintaining costs of a 50 W
Solar Home System over a 20 year period (these costs are only indicative and might very greatly
depending on the brand, on the country, on the project size, etc).
Capital cost (including battery, regulator,
inverter, cables and lights)
$ 900
Maintenance per year (annual inspection)
$ 15 (1.6% of capital cost)
Battery changes (every 7 years)

Regulator changes (every 10 years)
Light changes
Total changes costs
$ 240 = 2 * $ 120
$ 100
$ 300
$ 640
TOTAL life cycle cost (20 years)
$ 1840
Assuming each family can invest $ 45 per year in this technology (according to Peru: National Survey
of Rural Household Energy Use, it is the average amount of yearly energy expenditure for the
50
PROYECTO PER/98/G31, electrificacin rural a base de energa fotovoltaica en el Per, MINISTERIO DE

ENERGIA Y MINAS, August 2006 (read)
160
poorest quintile51) it would be impossible for the poorest families to afford such a technology
without financial philanthropic help.
The levelized generating costs52 of solar energy (US$/kWh) are almost independent of the size of the
device (unlike hydro or wind power), price is around 0.56 $/kW in every case (100 W, 300 W and 25
kW), price variations are less than 5%.
VII.
Main Actors
This list is not exhaustive because of the huge number of actors in the Andean countries.
Acciona microenergia Peru: Peruvian social firm specialized in the offgrid renewable energy generation. They have already installed more
than 600 SHS in Cajamarca and San Pablo (Peru) through a program
called Luz en casa.
Light up the world: Canadian NGO specialized in the implantation of
electrification and pre-electrification projects in 54 countries. They
installed over 500 SHS in Peru, provided electricity to 12 schools and 15
Health Centers. They have installed over 1500 SHS and 200 Rural Health
Centers in Guatemala, Costa Rica and Papua New Guinea.
Entelin: Peruvian firm specialized in solar systems, they worked in
several national projects to provide electricity in remote areas (schools
mainly) installing more than 35,000 solar panels in off grid regions of
Peru.
Soluciones Prcticas: British NGO which is specialized in all technologies
with special emphasis on wind and river turbines and solar housing
systems.
Aprotec is a Colombian firm, specialized in solar, wind and hydro energy
for remote areas.
51
Peru: National Survey of Rural Household Energy Use Special Report 007/10 August 2010 (read)
52
Masaki Takahashi, Technical and Economic Assessment of Off-grid, Mini-grid and Grid Electrification
Technologies, ESMAP Technical Paper 121/07 December 2007.World Bank, Washington, DC. (read)
161
Hybrytec is a Colombian company specialized in solar solutions. They

take part in social solar projects in Colombia.
FEDETA (Fundacin Ecuatoriana de Tecnologa Apropiada): the most
active NGO in energy fields in Ecuador, with solar and energy projects.
Energtica: This Bolivian NGO was created 20 years ago and installed
+20 000 solar panels for families and more than 2500 solar panels for
schools/health centers.
VIII.
Sociological and anthropological aspects
The importance of managing model and training: In order to increase reliability and
resilience an effective technical assistance needs to be established near the project location.
Increased understanding of system capabilities should also prevent problems such as the use
of appliances with excessive power ratings (main cause of battery damages).
Environmental issues: Although all materials can be found locally, there are no efficient
recycling programs for batteries and solar panels in South America at the moment. Batteries
need to be recuperated when deteriorated in order to store them in a sage area preventing
from environmental damages.
Maintenance: Panel have to be cleaned with water every two weeks if it doesnt rain, open
batteries need to be filled with distilled water twice a year. The misuse of batteries for cars
use is also relatively common, leading to the premature dysfunction of the battery. Even if
maintenance is quite simple, it is necessary to rain beneficiary. Most projects include an
explanatory sheet in the beneficiaries house to summarize the good use of installations.
162
GPOBA project in Bolivia
SEBA project in Ecuador
Cultural issues: making sure the panel is not in the shade might require cutting branches; this
topic needs to be discussed before implantation in order to prevent cultural problems.
Security issues: It is important to explain to beneficiaries that solar panels do not attract
lightening.
Thefts of solar panels were registered in several projects: it is important to make sure that
the beneficiaries will protect the installation.
163
II.2
I.
Wind turbines
Description and main interest
Microwind generators and Miniwind generators (MWG) are unconventional devices that can provide
electricity to isolated populations in off-grid regions with no carbon emissions. An MWG converts the
kinetic energy of the wind into rotational energy which is then converted into electrical energy
through a dynamo. The energy produced is then stored in a battery. The nominal power 53 of MWGs
is between 50 W and 10 kW depending on the size of the device. Installation and maintenance are
quite simple and cheap but a preliminary study of the Wind Power Density (WPD) is required in order
to install the appropriate device to cover the needs of electricity of the beneficiary (WPD is a much
more sensitive parameter than solar radiation for instance).
MWG:
Provide electricity to a single family, a little
village or a school (depending on the size of the
device).
Carbon emissions free.
Require almost no maintenance.
But:
They require a one-year previous study of wind
power in the location of implantation.
They must be connected to low power
electronic devices.
Beneficiary must be taught how to maintain
their wind turbine yet the availability of a wind
turbine is directly related to the amount of maintenance that community members are able
to perform on them54.
53
Nominal power: maximum power that can be delivered in optimal conditions.
54
Leary J., Howell R., While A., Chiroque J., VerKamp K., Pinedo C., Post-installation Analysis of Locally
Manufactured Small Wind Turbines: Case Studies in Peru, 2012, E-futures DTC, University of Sheffield, UK.
(read).
164
This technology can be applied at two different scales:

Wind Home System (WHS): each household has its own micro turbine (50 W to 1000 W). This
solution is generally used for isolated houses.
Wind powered Mini Grid: a single turbine (2.5 kW to 60 kW) provides electricity for an entire
village. This solution requires the installation of a low voltage electrical network connecting
the households to the turbine. Electricity can be provided through the mini grid to
households located at a few hundred meters from the wind turbine (1 km at most).
II.
Conditions of implantation
Several conditions need to be fulfilled to successfully install a wind turbine:

Previous study of wind speeds in the area in order to evaluate the monthly energy
production and adapt it to demand. The study takes a complete year and is absolutely
essential considering the significant wind speed fluctuations that can occur and its
unpredictability.
The turbine must not be in the range of turbulences caused by trees or buildings.
The turbine has to be placed as high as possible because wind is stronger in altitude.
The turbine has to be near the place where the electricity is used otherwise energy will be
lost because of the Joule effect (losses are proportional to cable length).
The type of battery has to be chosen considering different parameters such as mean
temperature, humidity, maximum airspeed, maximum power demand
Beneficiary must be aware of the correct use of the battery (its life expectancy critically
depends of the way it is used).
Most Andean countries have three types of regions: Sierra (highlands), Selva (rainforest) and Costa
(coast). A study of the Aeolian Atlas of South American countries 55 shows that all highland regions
throughout the continent have comparable wind power densities (it is also true for the coast and
rainforest regions), therefore a comparison of the Aeolian maps of Cajamarca (highland), Ancash
(coast and highland) and Amazonas (rainforest) gives a first insight into the eligibility of these three
types of regions for MWG in South America (with the restrictions that MWG performance are highly
dependent on local wind maps)56.
55
The Peruvian Aeolian Atlas is available on http://deltavolt.pe/atlas/eolico.
56
The NGO Energetica considers a minimum of 50W/m2 is necessary to implement wind turbine for
households and productive uses (see FERNANDEZ Miguel and al, Cambio Climtico, Agua y Energa en Bolivia,
Onudi and Energtica, 2012 (p21)).
.
165
The following pictures show how the mountains regions could be more eligible for wind
power technologies than coast or rainforest regions.
Bright colors represent strong winds whereas dark colors represent low wind power.
Coast and Mountains
Jungle
Mountains
Another factor has to be taken into account: households dispersion, in order to decide whether
multiple Wind Home Systems are going to be more appropriate than a single Wind powered Mini
Grid or not. According to a World Bank Group study57 a low voltage network (acceptable for wind
turbines <100 kW) costs:
Capital cost
4000 $/km of low voltage circuit
Operating and Maintenance
2 % of capital cost per year
Energy Losses
12 % of electrical energy delivered
57
Technologies, ESMAP Technical Paper 121/07 December 2007.World Bank, Washington, DC.
166
The average prices of wind turbines (including installation, tower and battery) can be estimated as
(please note that these costs are only indicative and might very greatly depending on the brand, on
the country, on the project size, etc):
Nominal Power
Price
Number of Beneficiaries
100 W
$ 500
1 Household (WHS)
500 W
$ 3500
1-3 Households (WHS, Micro Grid)
2.5 kW
$ 12 000
10-15 Households (Mini Grid)
10 kW
$ 40 000 - $ 60 000
40-60 Households (Mini Grid)
50 kW
$ 80 000 - $ 100 000
150-300
III.
useholds (Mini Grid)
Different types of turbines
There are two main kinds of wind generators, those of vertical axis, and those of horizontal axis:
There are no major differences between the different kinds of MWG, they are all constituted of the
same components. Solidity in case of strong winds is one the most important criteria, as a matter of
fact Windaid and Soluciones Prcticas report that 46% of damages where caused by strong winds.
Another crucial criteria of efficiency, is the adjustment of these three variables: Wind Power Density
(which can only be known if a preliminary study has been made), battery characteristics and
beneficiarys power demand.
167
IV.
Cost and benefits
According to a comparative study between a MWG and a Diesel Generator of same power based on
Solutions Practicas and Wind Aid experiences (please note that these costs are only indicative and
might very greatly depending on the brand, on the country, on the project size, etc.):
MWG 2.5 kW
Diesel Generator 2.5 kW
Maximum power
2.5 kW
2.5 kW
Price (installation included)
$ 10 000 to $ 12 000
$ 1 000
Maintenance (per year)
$ 200 to 240 = 2 % of capital
$ 100
cost
(including
battery
replacement)
Fuel (per year)
$0
$ 6 000
Life span
20 years
7 years
Energy produced (per year)
4 000 kWh
4 000 kWh
Energy cost
0.17 to 0.21 $/kWh
1.6 $/kWh
Considering a 2.5 kW MWG provides energy to approximately 13 households (300 kWh/year), and
assuming each family can invest $ 45 per year in this technology (according to Peru: National Survey
168
of Rural Household Energy Use, it is the average amount of yearly energy expenditure for the
poorest quintile58) it is impossible for a family to afford such a technology.
But comparing the wind turbine to the diesel generator shows that the wind turbine provides far
more electricity than the diesel generator for the same price.
V.
Main actors
Distributors and project leaders in South America:
Soluciones Practicas: a British NGO, which is specialized in all technologies

with special emphasis on wind and river turbines. 50 to 100 turbines were installed in
Peru.
Windaid : based in Trujillo, this non-profit organization uses wind turbine

technologies to give electricity to poor households, schools and rural hospitals.
Approximately 50 turbines installed in Peru.
Waira: firm specialized in renewable energy projects in rural or isolated areas

of South America.
Bornay: Spanish firm specialized in renewable energy; they are present in all
the countries of the Andean Region. They constructed over 4000 MWG worldwide.
Soluciones energticas: a Spanish firm specialized in renewable energy, also

present in South America. They partnered with NGOs to implement a few
telecommunication installations and a dozen of rural electrification installations (but
not in the Andean regions). Their devices are sold by independent distributors.
Cedecap: Peruvian NGO specialized in the implantation of projects related to

energy in Andean regions (above 4000 m). One of their goals is to spread information
related to renewable energies, and match needs to the appropriate technology.
Aprotec is a Colombian firm, specialized in solar, wind and hydro energy for
remote areas.
Other major international wind turbines producers:
58
Peru: National Survey of Rural Household Energy Use Special Report 007/10 August 2010
169

Gaia small wind turbines have been designed to operate in moderate wind
speed areas. More than 500 wind turbines were installed worldwide.
VI.
Vergnet installed more than 100 turbines worldwide, in remote areas.
Endurance Wind Power designs wind systems and power applications.
Evance Wind specializes in the supply and manufacturing of high quality small
wind turbines.
Legal issues: In South America, international certificates are not

required to install MWG, there shouldnt be any administrative
problem in the concerned countries.
Maintenance: All components can be found in South America, but

the transportation of materials within the country to installation
sites can be challenging.
Social behavior: In the case of a single MWG providing electricity

to multiple households, it is convenient to use one battery per
household or use a regulator in order to prevent conflicts and
free-rider behaviors, that is to say people using more energy
than they need because it is free.
The importance of managing model and training: In a recent

study of the Kenyan small wind sector59, where many locally Wind turbine (120 W) and
produced machines are also employed, it was found that lack of general view of the center
government incentives and out-of order turbines are the main
factors that inhibit confidence in small wind turbines. In order to address this issue, an effective
socio-technical system needs to be established around the wind turbine to increase reliability and
resilience (speed at which the system can recover from a failure). Beneficiary must be trained
and given the appropriate tools to provide corrective and preventive maintenance. Increased
understanding of system capabilities should also prevent problems such as the use of appliances
with excessive power ratings (main cause of battery damages). Windaid and Soluciones Prcticas
report that in wind-based rural electrification projects, installing a small wind turbine is only the
59
VANHEULE L., Small Wind Turbines in Kenya - An Analysis with Strategic Niche Management, in Department
of Technology Dynamics & Sustainable Development, Delft University of Technology: Delft, The Netherlands,
2012.
170
first step in providing energy access to a remote community; an effective socio-technical system
must therefore be put in place to ensure the long run functioning of the device.
II.3
I.
Micro hydro centrals
Description
Micro hydro plants provide hydroelectric power using the natural flow of water in off grid areas.
These installations can provide power to isolated homes, schools, health centers or small
communities through a mini grid. Micro Hydro Generators provide up to 100 kW.
Although details of a microhydro plant are site-specific, in a typical hydro system water is diverted
from a stream, river, or perhaps a waterfall through what is called an intake. The intake then tunnels
water through a pipeline (penstock) to the powerhouse building containing a turbine. In
mountainous areas, access to the route of the penstock may provide considerable challenges. If the
water source and turbine are far apart, the construction of the penstock may be the largest part of
the costs of construction. At the turbine, a controlling valve is installed to regulate the flow and the
speed of the turbine. The turbine converts the flow and pressure of the water to mechanical energy;
the water emerging from the turbine returns to the natural watercourse along a tailrace channel. The
turbine turns a generator, which is then connected to electrical loads; this might be directly
connected to the power system of a single building in very small installations, or may be connected
to a community distribution system for several homes or buildings through a mini grid.
Typical Microhydro plant
171
There are at least two other technologies that can be used to

exploit hydro power and that this document doesnt deal with
in depth because they are not widespread enough:
Water mills: this technology can only be applied on the
shores of large rivers and no relevant projects were
led in remote off-grid areas in South America.
Wind mill
In Peru, the Grupo PUCP
(investigation center of the Catholic University, one of the major
Peruvian Universities) is currently implementing a pilot project with
another type of wind mill with funding from the European Union.
While a traditional wind mill is immerged in the stream, the model of
the PUCP receives water from a penstock. This solution aims to
balance the fact of rivers which are not deep enough for a traditional
wind mill.
PUCP wind mill
Water turbines: submersible turbines that are directly put in

the river stream. This technology is very promising for large
rivers but only a few pilot projects were reported in remote
South American regions.
II.
Implementation conditions
Water turbine
In order to decide whether implementing a micro hydro plant is a

relevant project or not, certain points must be evaluated:
Topography and geology of the site

Hydro resource evaluation and generation potential
Environmental Impact
Legal issues
Hydro resource evaluation is a particularly complicated process that consists in measuring head and
flow.
172
Head is the pressure measurement of falling water expressed as a function of the difference
of altitude between the two ends of the pipeline.
Flow is the quantity of water per time unit that goes through the system.
Net Head refers to the pressure available at the turbine when water is flowing, which is always less
than the gross head (losses due to friction inside the pipeline arent taken into account in the
evaluation of gross head), pipeline diameter has a major effect on Net Head. Design Flow is the
maximum flow for which the system is designed. It should be less than the maximum flow of the
stream.
The turbine converts water power into rotational power at its shaft, which is then converted to
electrical power by the generator.
Power production is positively correlated to Flow and Head.
The correct evaluation of head and flow is crucial for the turbine and generator must be adapted to
these parameters.
III.
Technical aspects
A hydro system is a series of interconnected components:

water flows at one end, and electricity is produced at the
other. The intake is typically the highest point of the hydro
system, where water is diverted from the stream into the
pipeline that feeds the turbine. In many cases a small dam is
used to divert the water. A water diversion system serves two
primary purposes. The first is to provide a deep enough pool of
water to create a smooth, air-free inlet to pipeline. The second
is to remove dirt and debris.
Intake in Cajamarca, Peru
The pipeline is responsible for transporting water to the turbine

increasing vertical drop and Head at the same time. Pipeline diameter,
length and routing all affect efficiency and must match the design Flow of
the system.
Pipeline in Cajamarca, Peru
173
The turbine is the heart of the hydro system, where water

power is converted into rotational force that drives the
generator. There are two major types of turbines:
-
Reaction turbines: they run fully immersed in water

and are typically used in low-Head systems with
high Flow. Examples: Francis propeller and Kaplan.
Francis turbine
- Impulse turbines: they operate in air,

driven by one or more high velocity jets of water.
Impulse turbines are typically used with high
Head systems and use nozzles to produce high
velocity jets. Examples: Pelton and Turgo.
Pelton turbine
The generator converts the rotational

power into electrical power. Direct Current
(DC) generators are generally used for very
small systems. Alternating Current (AC)
generators are normally used in all but the
smallest systems. A load governor is
generally used to make sure the generator
constantly spins at its correct speed.
Turbine and generator in Yanacancha, Peru
174
The theoretical power of a hydro system is given by the following equation:
IV.
Cost
The cost60 of a micro hydro plant can vary considerably with the characteristics of the site, although
the following table gives an idea of capital costs (please note that these costs are only indicative and
might very greatly depending on the brand, on the country, on the project size, etc):
Capacity
Capacity Factor
Life span (years)
Gross generated
electricity
1 kW
25 %
15
2,600 kWh/year
100 kW
30 %
30
28,000 kWh/year
5 MW
45 %
30
20,000,000
kWh/year
Equipment ($/kW)
Civil ($/kW)
Engineering ($/kW)
Erection ($/kW)
Total capital cost ($/kW)
1,960
570
0
140
2,670
1,400
810
190
200
2,600
990
1,010
200
170
2,370
Maintenance (% of
capital cost per year)
Civil refer to construction (weir and forebay), engineering costs refer to generator cost, turbine
cost and governor costs.
There is another cost that needs to be taken into account: distribution cost. It is the cost of the mini
grid that will connect the generator to the beneficiary (households, school). Depending on the
power that is to be transmitted through the mini-grid, the voltage of the lines, the distance between
the generator and the point of usage of the electricity, costs and power losses vary. The following
schemes show the different possible configurations of mini grids:
60
175
Low voltage line (rated outpout < 60 kW)
High and low voltage line (rated output > 60 kW)
Costs61 and losses of mini-grids can be estimated using the following table (please note that these
costs are only indicative and might very greatly depending on the brand, on the country, on the
project size, etc):
Low voltage line cost (230 V)
High voltage line cost (11-33 kV)
Transformer cost (per unit)
Operating and Maintenance
Energy Losses
4000 $/km
5500 $/km
$ 3500
2 % of capital cost per year
12 % of electrical energy delivered
61
176
Transformer and high voltage line

V.
Main actors
Distributors and project leaders in South America:

Soluciones Prcticas: a British NGO, which is specialized in all technologies
with special emphasis on wind and river turbines. More than 15 Microhydro plants
(50 kW to 100 kW) were installed in Bolivia, Peru and Ecuador providing electricity to
more than 12,000 people. Many feasibility studies were made proving the strong hydro
power potential in the Andean countries.
GCZ Ingenieros SAC: Mini and Micro turbine manufacturer in Peru, more than
50 plants installed in Peru.
Soluciones energeticas: a Spanish firm specialized in renewable energy,
also present in South America. They partnered with NGOs to implement a few
telecommunication installations and a dozen of rural electrification installations (but
not in the Andean regions). Their devices are sold by independent distributors.
Aprotec is a Colombian firm, specialized in solar, wind and hydro energy

for remote areas.
177
Ecotec is a Bolivian NGO. They installed around 40 micro central hydroelectric

with power from 5kw to 250 kw, and have a workshop in La Paz where they build the
microhydro plant.
FEDETA (Fundacin Ecuatoriana de Tecnologa Apropiada): the most active

NGO in energy fields in Ecuador, with solar and energy projects.
VI.
Sociological and environmental aspects
Legal issues: Each country has its own standards and regulations concerning micro hydro
plants.
Transportation: All components can be found in South America but transportation of
materials within the country to installation sites can be challenging.
Environmental and cultural issues: Micro hydro systems have an impact on the
environment, it is therefore important to verify that the installation does not affect the
community nor the local economy.
The importance of managing model and training: Technicians must be trained and given
the appropriate tools to provide corrective and preventive maintenance to ensure the long
run functioning of the device.
Availability of resources: it is necessary to make sure that water is available all year long and
that the beneficiaries will not need it for other purposes (irrigation for example).
178
II.4
Biodigesters
I.
Description and main interest
Biodigesters convert organic waste into biogas and liquid fertilizer. The technology is entirely based
on the chemical reaction called anaerobic methanisation. Indeed, when organic waste is in sufficient
amount and is isolated from oxygen, the methanisation process gets started. This reaction is really
common in the nature. For example it occurs in the stomach of animals and is the cause of
flatulencies62.
The biodigesters allow to:
Facilitate control of pollution

(livestock excreta)
Produce biogas: used to cook
or to produce electricity
Produce biofertilizer
Whereas using the gas for direct

combustion in household stoves or gas
lamps is common, producing electricity
from biogas is still relatively rare in
most developing countries. In Germany
and other industrialized countries,
power generation is the main purpose Example: model used in Brazil, integrating livestock
of biogas plants; conversion of biogas farming, farming and renewable energy for households .
to electricity has become a standard
technology.
This document will therefore also discuss the potentials, obstacles and necessary framework
conditions for the utilization of biogas for small and medium scale electricity generation in South
America.
62
http://www.human-energies.com/Human-Energies/blog/wp-content/uploads/2012/01/BiodigesterBolivia.pdf
179
II.
History and models
The technology was invented in Asia in the 70s, during the world energy crisis caused by the oil price
shock.
There are many designs of biodigesters :
the floating canopy biodigester (Indian)

the fixed dome biodigester (Chinese)
the continuous-flow flexible tube biodigester (Taiwan)
the half flexible tube biodigester (Costa-Rica)
According to the experts, the Taiwanese model is the most appropriate for Latin America. As a
matter of fact it is more resistant (seismicity), simpler to transport and can bear colder temperatures.
Half flexible tube biodigester (Costa-Rica)
Continuous-flow flexible tube biodigester (Taiwan)
III.
Use and main actors
Biodigesters can provide biogas and biofertilizer to a single house, a farm, a firm or a community
depending on the size of the implanted device.
180
The biodigester works with organic materials, such as: human and animal waste, food waste, animal
carcass, etc.
For a family putting 20kg of cow dung and 60L of water every day, the biodigester produces 700 liter
of biogas (2-3 hours of cooking) and 80 liter of boil daily63.
Electricity generation:
The average calorific value of biogas is about 21-23.5 MJ/m, meaning that 1 m of biogas
corresponds to 0.5-0.6 l diesel fuel or an energy content of about 6 kWh. However, due to
conversion losses, 1m of biogas can be converted only to around 1.7 kWh.
Biogas electric plants are cost effective if power output is more than 5kW (10 kW according
to GIZ study of feasibility in developing countries), requiring large quantities of biomass
(typically agro-industrial wastes of a large farm). According to the Peruvian company Cidelsa,
the minimum size of a biodigester to produce electricity is 30m3, for 8 hours of electricity
with a 5kW generator (it consumes 2m3 per hour). The generator (with filter) costs 1500$
and the biodigester costs 50$/m3.
Domestic biodigesters can therefore not be used to produce electricity due to the amount of
necessary inputs and the cost of the generator. Implantation is more relevant in
industrialized farms: generating costs for 50 kW plants is generally between 0,11 and 0,29
$/kWh.
Main actors in Latin America are:
SNV: linked to the Dutch international cooperation, make investigations on
the technology. They installed pilot models in Peru and Bolivia and a 70m3
biodigester in Peru for electricity generation, along with Soluciones Practicas.
CARE Ecuador: pilot projects with biodigesters, only a dozen so far.
Soluciones Prcticas: a British NGO, which is specialized in all technologies
with special emphasis on wind and river turbines.
HIVOS: Dutch cooperation they are fundraising for a huge biodigester project
(13 000 biodigesters) in Bolivia and Peru, with SNV and Soluciones Prcticas.
ENDEV: funded by Germany and the Netherlands, they worked on managing
models and training for biodigesters through Endev-Bolivia. Endev installed 600
biodigesters in Bolivia (gas for cooking).
63 FORGET Astrid, Manual de diseo y de difusin de biodigestores familiares, con enfoque en

biodigestores tubulares, Microsol, June 2011.
181
RedBioLac is an organization aiming at fostering exchange of knowledge

and experience among Latin-American biodigester actors. The RedBioLac organizes an
international meeting every year. A similar organization is under creation in
Colombia.
Cidelsa is a Peruvian company specialized in geosyntetic structures. They
offer tubular biodigesters.
The International Center for Numerical Methods in Engineering (CIMNE) is a
Spanish research organization with an office in Cochabamba, Bolivia working on
biodigesters issues.
IV.
Costs and Benefits
The capital cost of a domestic biodigester is $ 200-280 in the Andean regions, prices drop to around $
160 in rainforest regions (sizes of reservoirs can be smaller). Installation is often made by
beneficiaries directly, if not it costs around $ 100. Cidelsa offers a 10 m3 biodigester (900$) with a gas
kitchen. This technology is not affordable for the poorest families but it significantly improves their
living conditions and their environmental impact:
Every time a biodigester is loaded with fresh manure and water via the inlet pipe, 80 litres of
biol come out at the other end (outlet pipe). Biol is a liquid fertilizer that can completely
replace chemical fertilizer. After it is filtered, biol can be sprayed on crops as a foliar fertilizer,
or can be placed directly on the soil or into irrigation canals. Producers report an increase in
crop production from 30% to 50%. In addition, biol protects against insects and helps plants
recover from damage by frost.
A family biodigester produces around 700 litres of gas per day, enough to cook for about
three hours. Cooking with biogas produces none of the smoke associated with firewood
stoves, which is harmful to health.
V.
Technical limitations
Even if the technology is widely spread in Asia, in South America it is still not very common (a
thousand installations in the region).
Limitations:
It is necessary to have access to organic materials and water to feed the biodigester.
Typically 2-3 cows or 9-12 pigs are needed to provide enough biogas to cook during 2-3 hours
daily.
182
Relatively high cost.

It works well in the jungle thanks to high temperatures, but it is more complicated in the
highlands.
It is necessary to wait several months before getting biogas (1 month in the rainforests and
more than two months in the highlands).
Limitations due to electricity generation:
Biodigesters used to produce electricity must be very big (more than 30 m3); domestic ones
cannot be used.
Expensive items must be imported from developed countries.
Gaz always contains a small amount of hydrogen sulfide which damages the generator if not
properly treated, but proper treatment is complicated and expensive.
Nevertheless, the Latin-American biodigesters promoters are very well organized (they have a
website and a sharing group called Red-Bio-Lac) and gather every year in a congress to share best
practices and promote the technology.
VI.
So far, only pilot projects have been led in the Andean region, almost exclusively to generate gas for
cooking and with mixed results. Only one project to generate electricity with a biodigester has been
reported, in the Peruvian jungle near Tarapoto, for a whole farming community (project led by SNV
and Soluciones Prcticas).
Even if the technical results of this technology are promising, social bottlenecks persist:
The technology is not well known among population and politics. It is thus necessary to have
successful pilots of the technology to show how it works to the populations and convince
them to use it.
It can be time-consuming to feed the biodigester, depending on the access to waste. That is
why the technology is working better in farms, where access to organic waste is easier.
Beneficiaries can get demotivated because of the time spent to feed the biodigester and the
fact they will have to wait several months before getting gas and boil, especially in the
highlands where the methanization process is longer.
183
Some populations are reluctant to deal with feces, especially human feces. For biodigesters
using this kind of inputs, it is important to check that there is social acceptance.
For all these reasons, the motivation of beneficiaries is a key factor. The technology works (at a
community level for electricity generation) but it is quite new in the region and requires commitment
from the users. As for all technologies, training will be also an important aspect to ensure good uses
and ownership.
VII.
Carbon methodologies for biodigesters
The biodigesters generate more carbon credits than the other technologies because it saves carbon
emissions in two ways: natural carbon emission resulting from disintegration of organic waste and
saving of polluting energy sources. Since the size of the biodigester varies a lot as well as the source
of organic waste, it is difficult to get an estimation of a credit carbon average.
Installing the tubular biodigester
Trench for the biodigester
Plastic gas tank
184
II.5
Lighting solutions
This document provides an overview of all lighting technologies used in off-grid regions of the world.
I.
Pico-technologies
Pico lighting technologies are the smallest scale technologies providing light; they are also referred to
as pre-electrification solutions. In other words pico-technologies are lanterns and/or lamps capable
of working and recharging without any electrical source. The three main technologies of this kind are:
-
Solar lamps
Gravity lights
Solar Lamps
Description
Solar lamps are undoubtedly the most widely spread pico technologies. A solar lamp is a portable
light fixture composed of a LED lamp, a photovoltaic solar panel (0.7 to 5 W at most), and
a rechargeable battery. Most devices have lamp, solar panel and battery integrated in one unit. Solar
lamps recharge during the day and provide light in the nighttime.
Figure 1: Solar light in Santa Lucia, Ica, Peru
Figure 2: D.Light's S 20 lantern
185
Main Actors
There are numerous solar lanterns fabricants among which:
Barefoot Power: Australian solar light manufacturer offers a large range of
lighting products, they also encourage recycling programs. Barefoot Power lanterns are
distributed in Africa, South Eastern Asia and South America.
D.light: This international social enterprise offers low cost ($10-15) solar lanterns
worldwide. More than 5 million lights sold.
Greenlight Planet: Indian firm offering low cost lanterns, almost one million
lanterns were sold in India and Africa.
Solar21: French firm selling lanterns with integrated cellular phone charger. Price
is around $ 80.
Sunlite: international solar lantern manufacturer. Their flagship product is the JS

30 MOB SUNLITE lantern distributed in India and Africa mainly.
SolarNest: NEST is a global organization, serving markets in Africa, Latin

America and other developing nations besides catering to markets in developed nations such
as North Americas, Europe, Japan, etc.
Trony: Chinese firm specialized in solar panels for pico applications.
Phocos: German firm offering energy-saving appliances such as lamps,

refrigeration/freezing. They have an office in Bolivia (Cochabamba).
186
Manufacturers often rely on local distributors to sell their products. Solar lantern market is very small
in South America at the moment, most lanterns where distributed by NGOs and international
cooperation (GIZ64 with Endev program, LUTW65).
Cost
A large part of the solar lantern market addresses to the base of the pyramid (the people living
with less than a few dollars a day, approximately 2 billion people worldwide). Initiatives such as
Lighting Africa66 catalyze and accelerate the development of sustainable markets for affordable,
modern off-grid lighting solutions for low-income households and micro-enterprises across the
world. International Institutions and charities make lanterns affordable to those who need it through
subsidies or microcredit. Although their goal has not yet been totally achieved the prices are low and
many people are as a matter of fact capable of buying solar lanterns through micro loans. Current
prices67 are approximately:
Name
Sun King - Eco
Brand
Brightness (relative
to Kerosene)
Autonomy
Cost
Life span
S2
S 20
Greenlight
Planet
2
Sun King Solo

Greenlight
Planet
5
D.Light
D.Light
10
4 hours
$ 11
5 years
4 hours
$ 16
5 years
5 hours
$ 12
5 years
4 hours
$18
5 years
Costs of distribution vary among regions; there are regions where solar products are not available at
all (D.Light products are not distributed in Ecuador and Chile).
Maintenance and recycling

Solar lanterns require no maintenance at all, most are humidity, dust and impact resistant.
Nevertheless a technical service is required for lantern batteries have to be recuperated and sent to
a proper recycling center. Since recycling programs are not very developed in South America,
batteries should at least be stored before an adapted solution is found.
64
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ): German cooperation agency providing

services and assisting the German governments projects.
65
Light up the world (LUTW): Canadian foundation financing lighting projects worldwide.
66
Lighting Africa is a joint IFC and World Bank program that works towards improving access to better lighting
in areas not yet connected to the electricity grid.
67
Local distribution prices are not included.
187
Gravity light
Description
GravityLight, an idea from two British designers, gets power from
the slow lowering of a weight that is hung to the GravityLight. It
takes only 3 seconds to lift the weight which powers gravity light,
creating 30 minutes of light on its descent. Recharging consists in
pushing the weight up again.
How does it work?
GravityLight is hung from the ceiling, and a 10 kg bag (provided
with the light) has to be hung from it. The slow lowering of the
weight runs a sort of dynamo providing the electrical energy
required to turn the LED light on. Although this only generates a
deciwatt or two of power, it is enough to provide as much as five
times more light than kerosene light would.
Benefits:
Figure 3: GravityLight
Can be used over and over again, anytime
No need for sunshine or batteries
No running costs
Robust and long lasting
Cost
Although GravityLight hasnt been commercialized
yet the expected price is $ 5 which is less than any
other lighting device. As a matter of fact this
technology was developed as an answer to
SolairAids challenge to create a LED lantern under $
10.
Development and prospects
Figure 4: GravityLight package
In November 2012 almost $ 400,000 were raised in order to tool, manufacture and distribute at least
1,000 gravity powered lights. Distribution started in August 2013, the feedback of this first try will be
used to make a second version of GravityLight and produce it in higher volumes this time.
188

No maintenance is required. The fact that GravityLights do not have batteries is a significant
advantage given the fact that efficient battery recycling programs are not yet available in South
America.
Distribution
Although this technology is too young to have yet been distributed, its simplicity gives very optimistic
prospects; all materials used to produce GravityLight can be found locally.
Description
Another way to provide sustainable energy to reload light batteries
is using a Power Cycle or winding a crank. This section does not
deal in depth with crank lights for they are mainly used in hybrid
devices (like in Freeplay Energy products). From now on we will
focus on pedal powered energy.
Nuru Energy was created in 2008. Up to five LED lights can be
recharged in twenty minutes of pedaling.
Cost
The cost of a Power Cycle is $ 200 and a light costs $6. The business
model is rather different than that of Solar Lamps. The company
decided not to sell its products directly to customers. Instead, it set Figure 5: Nuru's Power Cycle
up a network of village-level entrepreneurs who are responsible for
marketing, selling, and recharging the lights. Nuru Energy Entrepreneurs sell the lights for $ 6.5 and
recharge them for $ 0.20. Lights need to be recharged once a week. Each Power Cycle equipped
village level entrepreneur (VLE) is able to support up to 500 Lights, which services up to 2,500
people. This model has already demonstrated its effectiveness in Africa where Nuru Energys market
shares increase day after day (for instance: already 45% of Rwandas lighting market shares were
conquered in only two years).
Considering poorest rural families spend $ 1 and average rural families around $ 2 per week in
kerosene and other lighting fuels in Andean Countries:
Number of lights per family
Initial capital cost
Previous weekly kerosene
expenses
Cost per week
Economy per week
Time before profitable
1
$ 6.5
$1
2
$ 13
$1
3
$ 19.5
$2
4
$ 26
$2
$ 0.2
$ 0.8
2 months
$ 0.4
$ 0.6
5 months
$ 0.6
$ 1.4
3 months
$ 0.8
$ 1.2
6 months
189
Development and prospects

Nuru Energy was seed-funded by the World Bank in 2008, commercially financed by Bank of America
Merrill Lynch and the Africa Enterprise Challenge Fund in 2011 and currently operates in East Africa
(Kenya, Uganda) and India. This technology received many prizes since 2008 and 1.8 million lamps
should be sold by 2016.
Nuru Energy products have not yet been commercialized in South America.
Maintenance and Recycling
No maintenance is required but NL1 lights need to be recycled because they contain a battery.
Other pico lighting technologies
The following technologies will be briefly described because they are not relevant for this specific
study; mentioning them is important because it shows how difficult matching a technology to a
specific need is.
Lighting bottles
Lighting bottles were invented by MIT students
(although many people claim to have invented them)
and were first implanted in Manila. Most of off-grid
households being dark even during the day the idea
is to let the sunlight come inside the house. A hole is
therefor made in the roof and a plastic bottle filled
with water mixed with a few drops of bleach is
placed to seal it. The water inside the bottle diffuses
the light from the outside providing in the inside
approximately as much light as a 60 W incandescent
bulb would (in the daytime).
Figure 6: Bottle seen from the outside
This idea was initially for people living in slums. More

than 12 000 solar bottles were installed by A lighter of
light in five Filipino provinces. The idea was recently
picked up by Civil Military Operations group of the
Armed Forces of the Philippines that is set to distribute
over 10 000 bottle bulbs to different parts of Manilas
slums.
This genuine do it yourself idea is now spreading all
around the world, it has arrived to Kenya, Brazil,
Tanzania, Argentina, India Tens of thousands of
Figure 7: Bottle seen from the inside

190
families have installed solar bulbs in their households in every site of implantation, sometimes
spontaneously.
This technology, although very useful is not relevant for the carbon market and is just a partial
solution because it doesnt give any light in the nighttime.
Soccket
The SOCCKET is a portable generator in the form of a soccer ball. Created
for resource-poor communities in the developing world, the SOCCKET
harnesses the kinetic energy generated during play with the ball, and
stores it as electrical energy that can be used to power different
appliances like lamps and water sterilizers.
The ball captures energy through an inductive coil mechanism. Currently,
15 minutes of play provides 3 hours of LED light.
The company is already producing and distributing its second version of
Figure 8: A soccket ball and its Soccket. A third version of the soccer ball Soccket 3.0 is expected to come
light
out in a few months.
This technologys cost is $ 10 but the balls are not meant to be sold to the population directly, as a
matter of fact they are given to them for free.
Despite the plaudits it has garnered from the worlds media, TED and the Clinton Foundation, this
technology invented by Harvard students was severely criticized for being a top-down, donor
pleasing solution that doesnt fit the communities needs68.
II.
Micro Kits
Description
Micro kits are small packages generally composed of:
-
Small solar panel (30 Wp at most)

2-5 rechargeable LED lamps
Cellular phone charger
Cables (in order to connect all devices)
Other low power devices such as small radios can be

connected too.
Unlike Solar Home Systems (or Wind Home Systems),
Micro kits are pre-electrification solutions for in this
68
Figure 9: Soltys' Micro Kit (5 W panel, 4 lights and

a cellphone charger)
See the arguments of Steve Andrews SolarAids CEO concerning this technology:
http://sunshineisfree.info/2012/06/19/shiny-new-toy-saves-the-poor/
191
case the solar panel isnt connected to a battery but directly to small rechargeable devices.
Rechargeable devices and solar panel are generally sold at the same time for the number of
electronic devices must be adapted to the panels size.
Cost
Micro kits have the advantage of being much cheaper than all electrification solutions. As a matter of
fact Micro kits were invented for those who couldnt afford Solar Home Systems (please note that
these costs are only indicative and might very greatly depending on the brand, on the country, on the
project size, etc).
Name
Description
Module power
Price
Fire Fly Mobile

Family
2 lights, cables,
cellphone battery
charger.
1,5 W
$ 50
Kit Soltys 2
Powa Pack 5 W
Phocos
2 lights, cables,
cellphone battery
charger.
3W
$ 120
4 lights, cables,
cellphone battery
charger.
5W
$ 110
2 lights, cables,
cellphone
battery charger
5W
$ 160
Distribution of such devices is not very developed in South America and more than price the first
issue is availability. For instance Phocos micro kits are the only ones available in Bolivia (Phocos has
a workshop in Cochabamba, Bolivia).
Although micro kits are slightly more elaborated than simple solar lanterns they require very little
maintenance. Solar panels and all electrical devices containing a battery need to be recycled, a
technical service is therefore required to store damaged devices and ship them to appropriate
recycling centers. Since recycling programs are not very developed in South America, batteries
should at least be stored before an adapted solution is found.
Main actors
Phocos: German Company specialized in electrical efficiency and

renewable energy. They develop energy related projects worldwide at large and small
scale. Many rural electrification and pre-electrification project were and are being led
worldwide including South America.
Soltys: French company specialized in solar off-grid lighting. Their products are
distributed worldwide by both charities and for-profit companies.
192
Solux: is a non-profit German firm specialized in solar lighting. They provided

more than 23,000 solar micro kits worldwide.
SolarNexus : Solar Nexus International designs and delivers complete off-grid

solar PV micro systems worldwide.
III.
Lighting technologies in the Andean countries
Firstly, it is important to mention that only pico-PV can be found in the Andean countries. No other
technology was mentioned by the institutions met during the study and the fields studies confirmed
this result.
The situation of the 5 countries of the study is very diverse: while these technologies are unknown in
Chile and Ecuador, they start being widespread in Bolivia. Peru and Colombia have intermediary
stages, with a few projects which should be expanded in the coming years.
Estimations of solar lamps, elaborated through interviews during the study
Colombia
Number of solar lamps that have
been installed/sold
Number of solar lamps planned for
the near future
Ecuador
Peru
Bolivia
Chile
>300
>2000
>12 000
>15 000
<100
unknown
<100
unknown
>24 000
<100
In Peru, there are several initiatives to help promoting lighting technologies, especially through the
EnDev Program:
1. Work with solar companies such as PowerMundo and BrightSunPower (Sundaya) and foster
the creation of local distribution shops in Peru (existing shops or not).
2. Selling solar lanterns through microcredit (project with the NGO Fondesurco).
3. Link an existing shop with a microfinance organism for the sales of lamps.
In Bolivia, solar lanterns projects are led by the GIZ though Endev program, as well as by the Energy
Ministry through the program Electricity to Live with Dignity and the Inter-American Development
Bank (project with local entrepreneurs to sell up to 15 000 solar lanterns). In Colombia, USAID is
promoting the development of a market-based strategy to sell solar lamps.
193
III.
Projects visits
III.1
September 2013, San Juan de Abiseo (Peru) GIZ, solar lanterns
Field study
Date: Monday, September 2nd , 2013
Location: San Juan de Abiseo
Duration of the field study: one day
Number and type of interviewed beneficiaries: 5 men and 4 women were interviewed, 7 families
were visited.
Location and access
San Juan de Abiseo is a small community

located in San Martin, 150 km south
west of Tarapoto. It is located in the
River Abiseo National Park. The only
way to reach San Juan is via a three
hours boat transportation from
Huicungo which is the nearest town;
Huicungo is three hours away from
Tarapoto by public transportation (bus).
Besides the fact that no roads reach San
Juan, the transportation cost of a San
Juan Huicungo roundtrip is S/ 21 ($ 7)
which is very expensive for most
inhabitants.
There is no actual village: houses are
disseminated in the rainforests on both
shores of the Abiseo River. Accessibility
is one of the main issues of this project.
194
Beneficiaries
All beneficiaries are small scale farmers and peasants. Most of them used to make a living from coca
production until ten to fifteen years ago but nowadays most cultivate cacao and bananas. Families
generally consist of 5 people; young people tend to leave to the city.
Cultivating coca is very profitable compared to other alternatives. As a matter of fact coca can be
harvested every three months whereas other plantations can only be harvested once a year. Farmgate prices of coca leaf in 2011 reached average values of $3.3 per kg. Peasants growing coca earn
about twice as much as they would growing cacao or coffee. Nevertheless cultivating coca has
become too dangerous in this area; many coca farmers were incarcerated in the late 90s, probably
due to the fact that UNESCO pronounced the Rio Abiseo National Park as a Natural and Cultural
Heritage of Humanity in 1990. Unfortunately, recent studies made by the United Nations Office on
Drugs and Crime, Perus coca cultivation surface has increased in the last five years, and an increase
of coca production in the Abiseo region has also been notified although it is impossible to have
precise information.
Inhabitants sell their production in Huicungo where they go every fortnight in average; it is also the
only way for them to buy products such as machetes, rice, construction materials, etc.
There is a small primary school in the community center, but children must go to Huicungo to attend
secondary school.
Implantation
Every household was offered the possibility to buy for S/ 20 ($ 7) a solar micro kit (small solar panel
powering two lights and possibility to charge cellphones); 46 devices were installed. Most families
decided to buy them, other families didnt because they didnt have the money.
Three inhabitants were taught how to install the devices but not to provide any further technical
assistance nor maintenance. In case of dysfunction beneficiaries were told to contact one of the
beneficiaries who is GIZs local contact. The problem is that house dispersion makes contact with him
rather difficult (most people cannot swim and boat is expensive) because some families do not have
cellphones and calls are expensive too. There is also a shop in Juanjui, created by GIZ, to sell lanterns
and ensure maintenance. Nevertheless, the shop was not mentioned during the site visits by the
beneficiaries, maybe because it was implemented recently.
Reparation costs are taken care of by GIZ. Two different technologies were implanted:
-
Movable sun king pro lights

Fixed lights
Both technologies are connected to the same 5 W panels. Sun king pro lights are movable and have
three available intensities. Similar lights are sold in Juanjui, one hour (S/ 5) from Huicungo for S/ 150,
195
which means that installed devices have a S/ 300 market value (each household has two lights). This
might explain the fact that one beneficiary sold his device.
If used correctly these devices have a 5 year life span. GIZ collects broken and dysfunctional devices
and is therefore responsible for recycling.
Technology ownership
Beneficiaries are globally satisfied with their technology and there doesnt seem to be any jealousy
amongst them because both devices seem to bring equal satisfaction.
Lights work all night even when cloudy.
No local technicians were trained to maintain and repair micro kits, if a device doesnt work, it has to
be given to the community delegate who will contact and give the GIZ so they can come and fix
them.
Only one of the attending beneficiaries had a problem with his light, because it had fallen to the
ground.
According to them of 46 installed devices:
-
1 was sold (although forbidden)

2 were stolen
5 dont work perfectly (at least one of the lights is broken)
38 work normally
People whose devices are broken do not necessarily tell it to the community delegate, and
dysfunctions are not precisely described. Although everyone clearly said that this technology really
bettered their living conditions, allowing them to work at night, have better lighting for cooking, etc,
their reaction when their device fails to work correctly is almost inexistent. These populations are
not used to after sales services.
People said that they do not use fuel based lighting anymore, which allowed them to save S/ 12-20
every month (which matches the numbers found in national studies).
Every beneficiary that was interviewed said that this technology improved their living conditions:
-
Light quality is much better than petrol lamps

Money savings (S/ 12-20 every month)
No toxic fumes
Allowing night work
196
Battery connected to solar panel
Led Lamp
Micro solar panel
A three hours boat trip is the only way to reach

San Juan de Abiseo
197
III.2
September 2013, Pucar (Peru) Practical Actions, multi-technology
Field study
Date: Friday September 6th, 2013
Location: Pucar, San Pablo, 40 km North-West of Cajamarca
Contact person to go to the community: Mr Benito Ramirez (Cajamarca Project Coordinator),
benito.ramirez@solucionespracticas.org.pe
Number and type of interviewed beneficiaries: 5 women (40 years old housewives, farm workers), 2
local technicians (30 years old, farm workers) who were also beneficiaries.
Budget: $ 270,000
Location and accessibility

Pucar is a small village located at 40 km
from the North West of Cajamarca (2 hours
by car), half of the way being a very rugged
route. Soluciones Prcticas implemented this
rural electrification project in association
with Ingenieros sin Fronteras, which was
finalized in June 2013.
Beneficiaries
There are 43 families (approximately 215
people) in the community; most of them
make a living from the land. A small part of
their production is destined to be
commercialized. Several young men work in
gold mines in Cajamarca. There is a school
and a community building is being built.
198
Project description
A 12 kW micro hydro plant providing electricity to 27 families who were concentrated enough to be
interconnected into a minigrid and 7 Solar Home systems were also installed in isolated houses of the
same community.
Other projects were also implanted such as solar thermic water heating systems (12), biodigesters to
generate gas for cooking (5), efficient cooking stoves (20), ecological sanitation systems (13),
ecological house heating systems (6) and access to clean water for 43 families through gravity
systems.
We will focus on the electrification project.
Implantation
Beneficiaries didnt have to participate in the Project financing but had to take part in the
construction and elaboration of the hydro plant. The works were supposed to take 3-4 months but
the quantity of water wasnt sufficient to correctly power the generator so another month of work
was required six months later to finish the job. Since then the plant is perfectly functional. Works
took place during the off-season in order to disturb as little as possible the field works. Some workers
nevertheless said it was difficult to catch up the work once construction was terminated, although
none complained about the fact that they had to contribute to the project.
Only four families decided not to accept the deal and arent therefore connected to the mini grid.
The main reason is that they did not want to work during four months, a secondary reason is that
they didnt necessarily live there all year long.
Each family must pay S/ 10 every month to use up to 10 kWh, it is possible to consume more almost
for free (20 kWh would cost S/ 11,8). The collected money is used for functioning costs and for
compensations given to the local technicians. None of the 4 beneficiaries interrogated had power
limitation problems. Two of them used only 7-8 kWh a month. One of them said he had enough
power all along the year.
The money collected every month with the fees families pay for electricity is used to buy
maintenance and prevention materials, pay the taxes of the micro company and the two local
technicians.
Beneficiaries seemed to be very aware of how to use their technologies; each one of them was given
very clear instructions (see picture). Soluciones Practicas gives a careful attention to teaching how to
correctly use the technologies during the installations. The technologies do not require particular
skills or knowledge although instructions of use are to be taken seriously. Two men received a two
week long apprenticeship training to learn how to maintain the hydro plant. In case of dysfunction,
communication between Soluciones Practicas and beneficiaries is very efficient because there is an
199
almost constant presence of SP employees in the area working on several projects in neighboring
communities. The local technicians are also responsible for the well-functioning of the devices and
act as SPs local contacts. As of the electrical devices beneficiaries could use in their newly powered
houses, a list was given to them in order to choose efficient low and medium power devices.
Benefits
Beneficiaries have between 4 and 10 efficient lights, some have a TV, radio and other small electrical
devices. The lighting quality isnt comparable to the poor and toxic lighting they used to have (petrol
lamps and candles). They said that besides the fact that they now could work at night and watch TV,
their lighting is much safer and toxic fumes free. Nevertheless, access to electricity did not
significantly improve beneficiaries production and income like it usually does in rural and urban
areas. As a matter of fact, geographical isolation makes business difficult although there is a strong
potential for handicraft production (one of the neighboring communities makes big profits out of its
handicrafts) that could be taken advantage of now that electricity is available.
Beneficiaries interrogated (4) said their former lighting expenses were between S/ 8 and S/ 15 per
month. The expenses of some families have increased with this technology although they do not
regret it.
Those who benefitted from the other technologies (clean water, house and water heaters,
biodigesters) were very satisfied; all of the projects that were visited (one of each technology at
least) were perfectly functional and properly used by beneficiaries. But it would be important to see
the long-term impacts of the project, since installations have been working for only three months.
Technical aspects
Micro hydro plant is located approximately 1,5 km away from beneficiaries, the grids voltage is 380
V and transformers decrease it to 220 V for the households. Head is 37 m, and pipeline is 60 m long.
The intake is a 600m long canal leading to a small dam.
Solar Home Systems are powered by 75 W photovoltaic panels.
Two men of the community were given a technical training to maintain the plant and make sure
beneficiaries use their devices correctly. In case of damage or dysfunction they are Soluciones
Prcticas local contact.
As no mercury recycling program is available in the area, beneficiaries were told to bury their broken
CFL lights in a specific spot.
200
Hydro Mini Grid connecting the generator to

the beneficiaries' households
Hydro Siemens generator (Pelton turbine)
End of the 1 km long canal to water intake
Mini dam
201
House heating system

During the daytime heat is stored in this
plastic wall and diffuses in the adjacent
room in the nighttime through several holes.
House heating instructions
Solar water heater

This technology provides hot water using
only sun thermic energy. Water can be
heated up to 80C, at least four people can
take a shower in the evening. When the sun
shines, hot water can be provided almost
continuously.
Regulator connected to solar panel
202
Efficient cooking stove and biogasifiers (on the

left)
Efficient cook stoves allow people to cook

using two to three times less wood than
they used to. On the left you can see the
biogas cooker, it is connected to the
biodigester providing two to three hours
of cooking daily. It is mainly used for
breakfast, boiling water and to prepare
quick dishes.
Solar Home System
Biodigester
15 cubic meters biodigesters are filled with 80 L of
water and 30 kg of cow dung daily. It provides
three hours of biogas every day and biol fertilizer
for the plantations. They are implanted in houses
that have water access.
203
III.3
October 2013, Sicuani (Peru) Practical Actions, solar panels
Field study
Date: Tuesday, October 15th, 2013

Location: Sibina Sallma community, in Cusco Region
Name of the project: access to basic services: water, ecological
toilets, cook stoves, solar panels and sanitary fill for population in
the highlands
Implementing organization: Soluciones Prcticas (SP)
SP has several energy projects in Peru, in the following regions: Puno, Cusco, Cajamarca, San Martin
and Apurimac.
In Sicuani, SP team is made of 3 to 4 workers. They might hire 20 to 30 people for a new project for
wool spinners, to be executed with Bolivia.
Project duration: 2011-2013
Contact person to go to the community: Mr Percy Linares, percy.linares@solucionespracticas.org.pe,
sanitation specialist. Percy Linares has been working with Soluciones Prcticas for 4 years, and
worked previously with other NGOs such as World Vision.
Number of interviewed people: 3 beneficiaries (2 women and the President of the community),
Percy Linares and Freddy (member of the community who has been trained by Soluciones Prcticas
as a technician).
Budget of the project: 280 000 NS from Meal a Day Foundation + 60 000 NS from the Municipality
(85 000 euros).
Number of beneficiaries for solar panels: 25 families
Funders: Meal a Day Foundation, Soluciones Prcticas and local cities
204
The community is located at 5,000 meters above the sea and is reachable only with a private car, 4
hours from the nearest city (Sicuani, 100km distance69). Local people of Sibina Sallma generally spend
7 hours to go to Sicuani (3 hours walking to reach the road, and 4 hours by car afterwards). It is very
expensive in comparison with the community income (10 NS 2.5 euros both ways). There is no plan
to electrify this community through the national grid: the nearest village which will be electrified this
way is Japura, at 70 km approximately. A truck comes to the community two to three times a week
with gas.
In addition to the isolation from the nearest cities, houses are very isolated from one another (an
average of more than 500 meters from one another) because of alpaca farming, which is placeconsuming. There is no mobile phone signal for phones.
69
Sicuani is located at 2, 5 hours by car from the regional capital of Cusco.
205
Patricias closest neighbor
Beneficiaries
The community of Sibina Sallma is made up of 27 families, with 4 to 5 people family members in
each. Nevertheless, children older than three years old do not live in the community so as to be able
to attend school in the neighboring cities.
All the beneficiaries are alpaca farmers, owning between 70 up to 400 alpacas. Some of them also
have other animals, such as guinea pigs, sheep, horses There are also vicuas (kind of wild llamas),
but it is forbidden to hunt them (even if, according to Percy Linares, some people do it because the
wool is very costly). Percy Linares explained that alpaca wool production is very profitable, more than
other activities such as mototaxi drivers (kind of Indian tuc-tuc). The climate does not allow crops
of any products.
People seem very poor: their houses are simple and small, with only the necessary to live. All the
communities are Quechua speakers but mostof people understand Spanish as well.
People usually have two small houses and a central house: this enables them to change their location
according to the availability of pasture resources for their alpacas. They work all year long raising
their alpacas.
According to Percy Linares, in the community there is gender equality: tasks are equally shared
between men and women. Women and men go alternatively to the city to work, while the other
members of the family stay in the community to take care of children, animals, cook, etc.
206
The community seems pretty unified, with monthly meetings. In addition, every three months a big
meeting is organized with the surrounding communities, gathering approximately 200 families. There
is a president, elected every two years. The current president of Sibina Sallma is Nicanor and has
been elected in 2011 (see his interview below). His role is to lead people, organize meetings, make
the link with municipalities, etc. The community uses a lot the ayni, which is a working organization
dating back to the pre-Columbian time: it allows people to work together on a specific task for each
family alternatively (one day for me, one day for you).
There is neither health center nor school in the community: children are sent to the nearest cities,
where they live. They come back home only for holidays. There used to be a school but it closed
(some children had to walk more than two hours to reach it). On the contrary, there is a community
center, used for the monthly meetings.
The community center
Raising alpacas and selling wool
According to Percy Linares, one alpaca

needs one hectare to be fed, which is the
reason why houses are so isolated.
An alpaca can live up to 7 years and can
have one baby per year (alpacas are
pregnant during 10 to 11 months).
One alpaca wool kilo can be sold from 40 NS (10 euros) up to 250 NS (65 euros) depending on the
wool quality. One alpaca produces approximately one kilo of wool per year. People shave alpaca
twice a year. The wool is colored naturally, with plants. According to Nicanor, the President of the
community, people can get up to 4000 NS (1000 euros) per year with the alpaca wool. Alpaca meat
can also be sold for 6NS per kilo (1,5 euros), depending on alpaca age and size.
The main dangers with alpacas breeding are the cold and foxes. Cold and foxes kill approximately 10
alpacas (especially baby alpaca) a year, considering a herd of 100 alpacas.
207
Situation before the project implementation

Because of lack of awareness, people used lamps with batteries and used to throw the batteries
away, regardless of the contamination (according to Percy Linares, one battery can contaminate 10
000 liters of water). They also used kerosene even if kerosene purchase is restricted because of drug
trafficking. With these installations (candles and kerosene lamps), people spent approximately 17.5
NS per month.
Project description
25 families will have individual solar panels (two solar panels of 60 watts or one of 110 watts). 22
families have already their solar panels. The project also includes other installations to improve living
conditions such as sanitation solutions, water filters, heating walls, etc.
SP decided to work in this community because the city new Mayor of was committed to
communities electrification and willing to pay a part of the installations. Before project
implementation, the Mayor asked the President of each community if they agreed on the project,
and the Presidents consulted their communities.
Benefits
Electricity is firstly used for lighting and radio.
Electricity also allows protecting alpacas against foxes: with the lighting, foxes do not attack any
more alpaca babies.
SP also wants families to use electricity for productive uses (alpaca wool healing machine requires
20w-60w peak).
Technical aspects
The solar panels which have been installed include:
-
A solar panel (700-800 NS for 110w)

A battery (1000 NS)
A regulator (90 NS)
A convertor (300 NS)
An electric board (300 NS)
A thermomagnetic (60 NS)
The solar panel frame (80NS)
The whole installation costs 2630 NS, approximately 660 euros and materials are bought in Lima.
208
There is no plan for batteries recycling: it is expected that the community itself will resell the
batteries to a company, for a price of 20-30 NS (5-8 euros).
Managing model
Maintenance:
Soluciones Prcticas trains at least two technicians from the community: they are in charge of selling
components to the community and fixing easy problems. Freddy, whom I met, had a four months
training and also installs solar systems. People willing to be technicians present their application and
are then elected by the community. They have generally a one year long training.
Due to the isolation of the community, maintenance is a key aspect. Indeed, a component such as a
diode costs around 1 euro but is only sold in Sicuani, or in Cusco which means at least 2.5 euros for
transportation. That is the reason why the local technicians will be in charge of selling these
components to the families.
People will pay a small amount per month for maintenance. The amount has not been defined yet by
the community, but it will be between 7 to 10 NS per month.
Ownership of installations:
Generally, SPs beneficiaries pay 50% of the installation but in this particular case, they do not pay
anything because the Municipality covers the beneficiaries part.
Social aspects and training

Percy Linares stressed the importance of training: when there is no social work, there are problems.
The social part has been pretty hard. The municipality wants to see infrastructures and did not pay
attention at first to social aspects. But little by little, the city hall understands that social work is very
important.
Percy Linares explained that at first, it was difficult to get close to the community: people did not
trust the newcomers, because of past promises people (municipality) had made and never fulfilled.
There were quite skeptical about this new project.
Training with beneficiaries was done in two ways: with personal visits and during the monthly
general assembly (1 day of training). The personal aspects were pretty important: people started to
explain what they wanted after that the SP team started to stay overnight in families houses. Percy
Linares explained that one training session is definitely not sufficient. For example, people did not
say at first that they were afraid of solar panels (they feared they would attract thunderbolts).
Besides, SP tries to attend every monthly meeting of the community to check that there is no
problem.
209
Beneficiaries stories
Patricia
Patricia is 40 years old and has three

children. The youngest is Eva and is 5 years
old, she is not going to school so far and
stays with her mum. Her two other children
are studying in the city. Patricia lives with
her younger daughter Eva and her husband.
She has 100 alpacas and 3 sheep. Alpaca
wool production is almost her unique
income source to pay for education, food,
etc. Yet, she said it is hard to make a living
because the price of wool has decreased.
Percy explains to Patricia how the solar panels is
Sometimes, her husband works to get extra
working
money (I met him while he was collecting
stones near the road). She uses the energy
to listen to music and for lighting. She has been living in this house for two years.
In 2011, SP installed in her house a
biosand water filter, an ecological
latrine, a trombe wall and two solar
panels (of 60w each). Before getting
these solar systems, Patricia used
candles and kerosene for lighting. She
has also two lamps; working with
batteries (it costs 10 NS).
Patricias house
In her other house, she has as well a

solar panel but it is not working
anymore (apparently, it is a fusible
problem). When there is a problem
with the solar panel, she tells her
husband, who tries to fix the problem
when he goes to the city
(approximately once a week).
210
Nicanor
Nicanor has 2 children (12 and 8

years old). He comes from another
community called Santa Barbara, at
three hours from Sicuani, and came
to this community because of his
wife.
Nicanor has been elected as the
President of the community in
2011. According to him, the biggest
challenges the community is facing
are water and cold. But people like
to live here.
Nicanor step fathers house
A lot has changed. Before having this energy,

the end of the day was sad, people used to go
sleeping at 6pm. With energy, people are
weaving; they go to bed at 10pm. They
sometimes read as well, since people share
newspapers they bring from the city.
Nicanor has a radio, a cell phone and lanterns
he can plug in on the solar panel (a similar
lantern costs 15 NS 4 euros).
The dream of Nicanor is that the community

will be trained, and get organized to have
better quality wool. He would like to create a
handicraft association to sell them to tourists
(approximately 300 tourists come to the village
every year, on their way to a neighbor
trekking).
Nicanor and Emilie
211
Isabel
Isabel is 51 years old and has 4 children,

the oldest is 30 years old and the youngest
is 16 years old. She does not remember
when she got her solar panel. She uses the
electricity for lighting, to load a lantern
with batteries and for a radio. She has
alpacas as well.
Isabel with her young son
212
III.4 October 2013, Paruro (Peru) CECADE, multi-technologies

Field study
Date: Thursday 17th of October of 2013
Location: Yaurisque, Paruro province, in Cusco Region
Duration of the field study: half a day
Name of the project: CECADE (Training Center for Development Cusco School; Centro de
Capacitacin para el Desarrollo "Qosqo Yachay Wasi"), http://cuscosolar.org/
Project duration: NA
Contact person to go to the center: Pedro Zanabria, CECADE president (and physics teacher at Cusco
University,
specialized
in
renewable
energies
and
environment
management),
cecade@cuscosolar.org
Number of interviewed people: one (Pedro Zanabria)
Budget of the project: NA
Funders: Foundation Solar Family, Rotary Club
Implementing organization: CECADE was created in 2006.

Yaurisque is located at 32 km
from Cusco (one hour by car).
The road is in a very good
state
because
mining
companies need it to carry
mineral products. The road is
frequently blocked by the
communities
to
make
pressure on mining companies
so as to get benefits
(sanitation systems, schools,
buildings, etc.).
213
Description of the Centre
CECADE is a demonstrative center for new technologies, an investigation center and a training center
for the surrounding communities.
CECADE used to give also other training classes on pastry making, carpentry work, etc. This year, they
have only weaving classes, mathematics and languages (Spanish).
The center is currently giving weaving classes to 15 women: on Tuesday, Thursday and Saturday. The
students even exhibited their work in Cuscos Hotel Marriot the week before, but sales were quite
disappointing (only 1500$ in 15 days, for 15 women). The classes are also an opportunity to
empower women and to provide them with a socialization space. All the women who were attending
the classes the day of my visit were quechua speakers, able to communicate in Spanish as well.
CECADE also train rural teachers about solar panels, environment protection, etc. CECADE has
between 80 students up to 120 students, with a majority of women, and 7 to 8 teachers.
General context
Until 2 to 3 years ago, the majority of the surrounding communitiesy were farmers (crops of oca,
olluco, potatoes, corn, wheat, etc and animals). But according to Pedro Zanabria, 30% of the people
work currently as employees, in mines or public infrastructure construction such as roads.
Most of the women who are weaving student get energy from the national grid and have cookstoves,
thanks to the governmental project Nina (40 000 gas cookstoves). The gas is subsidised for poor
people: it costs 22 NS a gallon, whereas the normal price is 38 NS. The subsidy is given to people who
have a very low electricity consumption: people who use less than 40 kW/h/month get a receipt to
have a lower gas price.
214
Weaving classes
215
Improve housing conditions
Improved cook stove with oven
Solar stove
CECADE tried several models and sizes of cook

stoves, with oven or without. People tend to
prefer the stoves where it isnt necessary to cut
the wood into small pieces.
Solar water heater

216
Improve crops and livestock
Solar dryer
Lavender and other plants experimentation
Guinea pigs breeding
Greenhouse
Other installations include: fish farming, hydraulic ram pump, compost, water purifier, and animals
breeding.
217
Renewable energies
Solar panel for public lighting (320 Wp)
Pelton turbine, 400 W (around 500$)
Wind turbine (120 W) and general view of the center
Chinese biodigester.
Objective: raise the temperature
thanks to a greenhouse to get gas
sooner.
218
III.5
October 2013, Canas (Peru) Grupo PUCP, river-turbines
Field study
Date: Friday 18th of October of 2013
Location: Chawpibanda community Yanauca, Canas Province in Cusco Region
Name of the project: Riogeneradores (Rivergenerator)
Contact person to go to the community: Mr Carlos Chuquitapa. Carlos Chuquitapa is from Canas
region and worked previously with the IAA (Institute for an Alternative Agriculture).
Number of interviewed people: 2 beneficiaries (2 women), community members, Carlos Chuquitapa,
Miguel Hadzich (on September 27th)
Budget of the project: 1.8 million euros
Number of beneficiaries: 32 communities (target) representing 6500 people, 11 of them have
already a river turbine
Funders: European Union
Implementing organization: Grupo PUCP (Rural Sector
Support Group). Three people of the Grupo PUCP work on this
project.
(http://gruporural.pucp.edu.pe/nuestros_proyectos/riogenera
dores-pucp/)
The community is located at 4100 meters above sea level: with a private car, 4 hours approximately
are necessary to reach the community (2 hours from the province capital Yanauca). The road to
reach the community was built 10 years ago.
Some houses are closed to the national grid but they are not connected to the grid.
219
Beneficiaries
The community of Chawpibanda is dedicated to farming (sheep, cows, alpacas, horses, etc) and crops
(potatoes, cevada, etc).
There is a centro poblado (populated center) which gather a hundred families, a school, an high
school, an health center and the municipal authority. A market is held in the place every week, with
products from the city. Many people have several houses: one in the country side to raise their
animals and get crops, and one in the populated center where their children stay to study.
People are quechua speaker: men seem to be able to speak perfectly in Spanish, but the women I
met had trouble to express themselves in Spanish.
The community has also some solar panels linked to a public phone: it can load 3 batteries per day,
and people are charging batteries this way when the river turbine is not working properly. The
national grid works well in general, but the rain and thunderbolts sometimes make it stop.
220
Central place of the "populated center"
Project design
In 2010, the project started with interviews to find the most suitable place to implement the project.
A team from the Catholic University in Lima came to the Canas province : they made statistics to
determine the neediest communities and maps of the region to identify rivers for the river generator.
The team of the project and especially Carlos Chuquitapa is from the region and had already an idea
of the communities where a similar project could be implemented.
There is an agreement with the Municipality but it is not working very well: the University is
supposed to train the Municipality but they are not very interested according to Carlos Chuquitapa.
The project includes 3 municipalities and the links are stronger with one of them: the mayor lent a
car to transport material for the project.
When a community is identified, people have to commit themselves in helping with workforce and
material (such as adobe bricks) for the construction of the turbine and its protective house. There is
only one expert from the Grupo PUCP to help with the construction.
Project description
For one river turbine, there is approximately 48 families with 48 batteries, and 15 additional batteries
for emergency situations.
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Benefits
Electricity is only used for lighting: there is no converter so the batteries cannot be used to load
cellphones nor radio, even if Miguel Hadzich, Grupo PUCP Director, mentioned that each family has
two batteries and that young people have all cellphones that they can recharge with the wind
turbines.
Technical aspects
According to Carlos Chuquitapa, this kind of river turbine is more adapted to the context than Pelton
of Bankis turbines because they do not require neither a lot of water, nor a huge difference in height
or water speed.
According to Carlos Chuquitapa, so far the installations are working very well, even if during the dry
season, it takes more time to load the batteries. They are supposed to give light to two lamps during
2 to 3 hours per day, during one week. Afterwards, the family needs to reload the battery with the
river turbine, bringing them to the charging station. Carlos Chuquitapa said that each family has to
walk less than 30 minutes to reach the charging
station. The turbine could load up to 10 batteries in
one day.
The installations are made up of:
- Batteries of 12 volts (approximately 100$), life
expectancy of 7-8 years.
- Turbine
- Small building to keep the material
- Tubes
The tubes and the small building cost approximately 20
000 to 30 000 NS (between 5000 euros to 8000 euros).
One of the key aspects of this project is water
availability. Carlos Chuquitapa explained that there is
water all year long even if there are 2 or 3 months with
only a few water, which thus a longer time period to
reload the batteries. However, the beneficiaries
perception seemed different: a community leader said
there is no water during 5 months, and that the
222
batteries last only 4 days instead of one week. People seem to be demotivated because when there
is not a lot of water, it takes more time to load the batteries.
When I visited the two turbines, one was not working because people decided to use water for
irrigation. The other one was working but very slowly because of the dry season. Carlos Chuquitapa
advised the community members to use water one week for irrigation and one week for the turbine.
This advice will be discussed during the next assembly meeting.
Recycling: there is no specific thing foreseen for recycling. According to Carlos Chuquitapa,
sometimes people come to the community to buy used batteries.
Managing model
The construction of the
turbine lasts one month:
beneficiaries are required
to take part in its
construction. According to
Carlos Chuquitapa, it was
not a problem; everybody
took
part
in
the
construction, alternating
with
each
others.
Nonetheless,
Miguel
Hadzich mentioned that
the
chronogram
of
activities had to be
changed because it did not
match with harvest periods: people were working on their fields and had no time to build MHE.
A leading committee is constituted for each turbine, by community members.
People are in charge of battery and bulbs replacement. Each family is supposed to pay a small
amount to create a warranty fund. In addition, when the family reloads its battery, they give a small
amount to pay the person in charge of batteries loading. The batteries are personal: the name of the
owner is written on the battery to prevent conflict if a battery is not used properly. No thefts have
been reported so far.
The European Union comes to visit the installations very frequently. Follow-up visits will be done
during one year.
223

There are two levels of training: simple training for the
family, and deep training for technicians. Technicians are
volunteers from the community and do not receive any
payment. Families are trained during the installations in
their houses: the training lasts around 4 hours. There is
training with a whole group, which lasts around 4 to 5
hours. The objective of the training is to explain how to
maintain the batteries, how to use them, how the water
canals are working. There is also one explicative poster
in each generator house.
According to Carlos Chuquitapa, sometimes the people
living nearer to the system take the loaded batteries and
tell the others
that they are not
working.
Maria
Maria is 36 years old and has two children (2 years old and 3
years old). She is a quechua speaker. She lives alternatively in
the community and in Lima but confesses that she does not
feel comfortable in the capital. Her house is located at a 30
minutes walk from the populated center and the market. She
has some crops but is not satisfied with her field quality: the
fields were divided between community members but some
fields were better than others. This system is supposed to
last 5 years but she is afraid that people who got good fields
will be opposed to the change of the system.
Maria benefits from the river generator but she said that the
battery system is not working right now because there is no
Maria at the market
water. She hopes that her children will benefit from the
system, to do their homework.
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Sabina
Sabina Quispe is 65 years old. She said her battery is not working any longer because she could not
change it for another one: her legs hurt and she has troubles to walk until the turbine to reload her
battery. Her daughter raises animals and visit her every day but did not take the battery to the river
turbine.
Sabina and her cocas leaves
Sabinas house
225
III.6
October 2013, Mizque, Aiquile, Santiago de Machaca (Bolivia)
PEVD and Energtica, solar panels
General data on the whole project:
Name of the project: Solar panel systems and solar lanterns in rural areas (PRESTACIN DE
SERVICIOS PARA EL SUMINISTRO DE SERVICIOS DE ELECTRICIDAD CON SISTEMAS FOTOVOLTAICOS
EN ZONAS RURALES FINANCIADOS POR EL GPOBA Y SUMINISTRO DE LMPARAS Y LINTERNAS
SOLARES (PICO PV))
Project duration: 2012-2013 (the agreement for the project was signed in 2007). Maintenance is
planned for two years (until 2015).
Budget of the project: US$5.18 million
Number of beneficiaries: 7000 families with solar panels (other families got solar lanterns)
Funders: GPOBA70 , World Bank and local governments/cities. The contribution
of local governments and cities was negotiated with each one, meaning that
the contribution of the beneficiaries varies greatly between the areas of
implementation. World Bank/GPOBA covered more than half of the solar
panels cost (460$ for each solar panel).
Implementing organizations: the Bolivian Energy Ministry managed the funds,
published a call for proposal and supervised the project. 4500 solar panels were
installed by the Bolivian NGO Energetica 71 (regions of Cochabamba and La Paz)
and 2500 by the company Enersol (in the regions of Potos and Sucre). In
Cochabamba, Energtica installed the systems with the company SIE SA.
70
GPOBA is a partnership of donors working together to support OBA approaches. GPOBA was established in
2003 by the United Kingdoms Department for International Development (DFID) as a multi-donor trust fund
administered by the World Bank. Since 2003, four additional donors have joined the partnership: the
International Finance Corporation (IFC), the Dutch Ministry of Foreign Affairs (DGIS), the Australian Agency for
International Development (AusAID) and the Swedish International Development Agency (Sida). Source:
http://www.gpoba.org/about
71
Energetica employs approximately 30 people and is the biggest NGO in Bolivia dedicated to energy issues.
226
Project description
Each family received a 50W solar panel and 4 bulbs (3 energy saving light bulbs and 1 LED), a
cellphone chargers and two plugs. The cost of the installation is US$ 850 for one family.
-
1 LED (2W) used in small rooms such as kitchen, cost: 200 bolivianos
1 big efficient bulb (11W)
1 small efficient bulb (7W)
(the project also included social installations, that is to say solar panels for schools and, solar
lanterns in the jungle).
Maintenance
For this project, two types of maintenance are considered:
preventive and corrective.
1. Preventive maintenance:
-
Check the installation (and fill sheets for monitoring)

Training on the good use of installations.
2. Corrective maintenance
Cleaning the solar panel
When the installation is not working properly, the family

needs to fill a sheet and to report the failure to the
implementing organization (Energtica or Enersol,
depending on the area). The implementing organization
has to fix the problem within 15 days for free (except if
the family itself broke the system), during the two years of
the systems warranty.
Reporting failures
227
Training
Families are trained on the good use of the systems

during the installation. During the preventive
maintenance (approximately one year after the system
installation), a new training is done.In addition, in each
house there is a poster explaining how to use the
system, how to check if everything is working properly
and how to realize small maintenance operations.
I visited two sites: Mizque surroundings (with
Energetica team) and La Paz surroundings (with the
Energy Ministry team). With Energtica, I visited as well
Reminder poster
a solar water bombing system but this installation will
not be described in this report, for not being in the
studys scope.
Field study 1: Mizque and Aiquile
Date: Tuesday 22nd and Wednesday 23rd of October of 2013

Location: Mizque and Campero provinces, department of Cochabamba
Duration of the field study: one and a half day
Contact person to go to the community: Fredy Peredo, from Energtica (fredy@energetica.org.bo).
He is an agronomy engineer and has been working for 9 years with Energtica. Ronald Borda
Gonzales (ronald@sie-sa.com) works with the company SIE SA, which is in charge of furnishing and
installing the systems. Ronald has been working with SIE SA for 5 years.
Number of interviewed people: 4
228
Mizque and Aiquile are located approximately at 2300

meters above the sea level and 4 hours by bus from
Cochabamba.
Cell phones are not working everywhere but radio is an
important mean of communication. It is possible to make an
announcement on the local radio (20 bolivianos so that the
announcement is released 4 times).
Beneficiaries
Their main activity is farming: wheat, corn crops, and

animals breeding (goats, pigs, sheep, donkeys, guinea pigs,
chicken, etc). The area is very dry and access to water, for
crops, human consumption and animals is a challenge.
There are all quechua speakers and some people (the older,
and especially women) do not speak spanish.
Project design
Goats breeding
In Mizque and Aiquile, the project design was long because of difficulties to get subsidies from the
local institutions.
229
The following steps were necessary before getting to a final agreement:

1. The World Bank agreed to pay 460$ for each panel, meaning that final users would have to
pays 390$, which was too expensive in comparison to their incomes.
2. The Municipality agreed to add a 100$ subsidy for each panel, meaning that final users
would have to pays 290$, which was too expensive in comparison to their incomes.
3. The Department institutions agreed to add a 290$ subsidy for each panel.
4. Since the Department institutions agreed to pay 290$, the Municipality decided to reduce its
participation to 50$ (because otherwise, final beneficiaries would not pay anything).
5. Families needed to pay the remaining part of 50$.
Managing model
Each family is responsible for its own solar panel. No technicians have been trained in the region but
it might be considered in the future, in case of any problem, the family need to call the implementing
organization (Energtica or Enersol).
Recycling: the shop should buy the batteries but there is no clue whether they will really do it.
Beneficiaries received training when the system was installed. But none of the three families in
Mizque seemed to remember the training they received one year ago. They have a sheet explaining
how the system works and a small book but they did not seem to pay a lot of attention to these
tools.
In the four family we visited, the most common problem was cleaning (especially of the solar panel,
because it does not rain a lot in this region) and water level of the battery. Only one family
maintained his system, but they added too much distillated water to the battery.
Since they were explained that the warranty is not working if they move the installation, it looks like
some people were afraid of touching it for cleaning or adding distillated water. Even if the number of
the person to be called in case of problem is written on the explanation sheet, the three last families
did not seem to remember who to call in case of problem.
According to Fredy Peredo, in some cases people use the battery for cars, but it was not the case
with the families I met (It is possible to know it because they would have to break a tape).
230
Quintin Claros Delgadillo, Kuru Mayu Chico community.

24 families live in Kuru Mayu Chico community, but only two families have solar panels. 8 families
will be connected to the national grid soon, and 7 will have access to a solar panel. The list of future
beneficiaries is transmitted to the city hall.
Quitin Claros Delgadillo is 50 years old and
live with his 5 children (aged between 7
years old up to 18 years old). He is a
farmer: he grows corn, potatoes, wheat and
has animals (goats, cows, etc). His house is
located at 3-4 hours by foot to the nearest
city of Mizque, one hour by car (for 5
bolivianos). There is a public bus every day
but it is necessary to walk 30 minutes to
reach the road.
He goes to the city 2-3 times a month for
purchases.
Quintin Claros Delgadillo and his 5 children
He reported a problem with one bulb and

with his cellphone charger 7 days ago, to Energtica. Eventually, the cellphone charger was working
(the family was not using it properly). It is the first failure his system had, which was installed in April
2013. Before, he used candles and kerosene lamps (approximately 100 candles per months, for 100
bolivianos). He said that his eyes are better, but that the system is not giving enough light. He uses
light 3-4 hours a day and in addition, uses
non- rechargeable batteries for flashlights.
Rosando Peralta, Leuque

community
The nearest city is Aiquile (45 minutes by

car, 3 hours walking). They go there 1 to 2
times a week for purchase. School is
reachable with 1 hour walking. In Leuque,
there is a leading committee, with meetings
every 15 days and representing 30 families.
They are now discussing a new project, for Rosandos family
micro irrigation through microcredit
231
(project supported by Spain).

6 people live in Rosandos house: Rosando son (three people) and grand-son (2 people). His 4 other
children (and 6 grandson) live in other places and work as farmers or employees.
They have 30 goats, sheep, one pig, chicken, donkeys, horses and grows corn, wheat, potatoes,
quinoa, linseed, beans
This family has had a solar panel for 1 year. We visited this
house for the preventive maintenance.
The system was working well even if the family has not
made any maintenance: wash the solar panels, the
batteries, add distillated water, etc. Fredy Peredo
recommended adding distillated water. Rosando received a
first training by Energetica when the system was installed
(1 year ago) but did not remember very well how to care
the installation. The visit was them an opportunity to
remind him all the advices to protect the installation so
that he could be able to identify problems and to fix them
(for example: change fusible). His two sons attended this
new training.
The family uses the solar panel for lighting, radio, and to
One of the room of the house
charge a cell phone. There have as well 6 flashlights, with
non-rechargeable batteries. They buy approximately 2
batteries per week (6 bolivianos for the two batteries).
Rosando was quite satisfied with the system: he hasnt had any problems so far, he likes it because
he does not need to buy candles (before, this family used candles (20 bolivianos per week) and
kerosene lamps (10 bolivianos per week)). Rosandos family uses the light from 7 to 9 pm.
He hasnt noticed any change with his eyes and told Fredy Peredo was the light was not enough.
232
Field study: Limani, Santiago de Machaca - BOLIVIA
Date: 25th of October

Location: Santiago de Machaca province, La Paz department
Contact person to go to the community: Richard Suxo, Ministry of
Energy
Santiago de Machaca is located near the border with Peru and at 4000 meters above the sea level. It
is reachable from La Paz, by car (2-3 hours).
Beneficiaries
People are from the Aymara etny. They breed cows, sheep, llamas, and cultivate potatoes, quinoa,
etc.
Project design
50 systems have been installed in this area. More people (around 200 families) wanted to benefit
from the systems but could not afford to pay the requested amount (290$, because there was no
subsidies from the local city)
233
Simon Chacolla
Simon Chacolla has 3 children and speaks both aymar and spanish. He lives
in a group of houses, including the one of his father in-law and of another
family (5 people). His house is 15 km away from the city (2 hours walking, 20
minutes by moto, 1 hour with a bike) and he has 50 llamas, 100 sheep, 5
cows and donkeys He has another house (from his own family) located more
far away, where he stays when he
needs to pastor his animals. In this
house, he uses kerosene lamps.
Kerosene lamp
Simon Chacolla got his solar panel in September 2012: the

panel is used for the 3 houses (10 people). His has not received
yet a preventive visit.
Before, he used candles and kerosene lamps (with animals fat).
He said that there was a lot of smoke with these installations
and that he had trouble to see. In one month, he used one to
two liters of kerosene (12 bolivianos the liter). He is still using
flashlights with non-rechargeable batteries. Batteries cost 7
bolivianos and have to be changed every 15 days. He said there
are no rechargeable batteries in the city. Batteries are thrown
away in the yard: he was not aware pollution risks.
In his house
Simon Chacolla had read the manual
explaining how to use the installation and
seemed to remember his training (he said
that there is the same level of water in
the battery, that he did not need to
change the fusible, that he cleaned the
solar panel once, that he turns it off when
there are thunderbolts, etc). He said that
distillated water is available in La Paz, not
Simon Chacollas house
in Santiago de Chacar.
234
Abundio Espeja
Abundio lives alone since his 4 children are living in la Paz

(there are from 18 to 32 years old). His house is pretty
new, he built it 2 years ago but he has another house from
his parents, in the highlands.
Abundio Espeja got a solar panel in December 2012. Before
he used candles (not kerosene lamps), with half a candle a
day.
One of his efficient bulb stopped working 3 months ago but
so far, he did not advised Energtica because he lost the
phone number (even if the phone number was actually on
the explaining sheet, but he explained then that he did not
want to call because it was a phone number from Abundio Espeja in front of his house
Cochabamba).
He said the system is working properly, except one bulb. He does not use radio because he is not
sure how to plug it in. He did not touch the battery so far, not even to check the distillated water
level.
Nonetheless, he considered the system was too expensive: he said he checked the prices in other
places and that it was cheaper.
Raquel Choquehuanca Quispe
Raquel Choquehuanca Quispe lives with 6 people. Before,

she used kerosene lamps (3 to 4 liters per months).
She got two solar panels in December 2012, it is working
well. Nonetheless, she used to let the exterior light on
every night long and complained that one lamp is turned
off when she wake up, which implies that it is not
working as well as the other.
She has not checked the level of the water because the
technicians told her she did not have to because they
would come back in order to check by themselves.
Raquels house
235
Observations:
Advertisements: Due to the short time dedicated to the field visits, these observations are preliminary
and should be deepened through longer evaluations. In addition, my intermediary level in quechua
did not allow me to understand everything that the interviewees in Mizque were saying.
1. All beneficiaries said the installations are working well, even if several of them explained that
light intensity is too low.
2. It is interesting to stress the differences in the two field visits: even if the project is the same
and that beneficiaries received the same training, people in the Altiplano seemed to
remember much better the training and to know how to maintain the system, maybe thanks
to a higher education level.
3. Solar panels do no cover all the lighting needs: since they live in the countryside without
public lighting, people need as well movable lighting solutions such as flashlight. They use to
throw the batteries in their gardens and crops, with possible impact on health in the long
run. In addition, people in the altiplano have generally two houses: one close to the city and
one in the countryside, to pastor their animals. It would be then necessary to implement
electrification systems (or solar lanterns) in the two houses.
4. Several people mentioned that they were afraid to damage the system while realizing
maintenance or cleaning operations, that is why they did not do any maintenance.
236
III.7
November 2013, Tarapaca (Chile) Desafio Levantemos Chile, solar panels
Field study
Date: Tuesday 12th of November of 2013

Location: Pisigachoque, Tarapaca region, El Tamarugal province, Iquique region
Name of the project: lighting the highlands (Iluminemos el Altiplano)
Implementing organization: Desafio Levantemos Chile
Desafio Levantemos Chile is a Foundation,
created in 2010, at first for the reconstruction
after the earthquake. Approximately 30
people are permanently working in Desafio, in
addition to 50 consultants and volunteers.
The project Lighting the Highlands
(Iluminemos el Altiplano), with solar panels
and thermal solar was launched recently. The
plan is to electrify 12 schools in Tarapaca
district, an Aymara region, starting in 2014.
Project duration: 2013 (I visited the school The children and their teachers, Foundation Desafio
during its inauguration)
and Banco de Chile
Contact person to go to the community:
Cristin ORyan, lighting project manager, coryan@desafiochile.cl, Leandro Marchant, volunteer of
the Foundation Desafio and who is living in Iquique.
Number of interviewed people: the teacher Jacqueline, the teacher assistant, 2 community members
(one mother and an old man), 2 children, teachers from Colchane high schools, one official from the
Ministry of Interior, Crstin ORyan and Leandro Marchant. The interviews were short and quite
informal since the main purpose of the day was the installations inauguration
Budget of the project: $7MM Chilean pesos (14 million USD)
237
Number of beneficiaries for solar panels: 8 students and 1 teacher (the

installations might be profitable to the whole community)
Funders: Banco de Chile
The community is located at 3700 meters above the sea level and is
reachable with a private car or by public transportation (even if public
transportation is not very reliable), 3-4 hours from the nearest big city
(Iquique). The community is very closed to Colchane, a small city at the
border with Bolivia. Colchane has the majority of facilities: high school,
health center, administrative buildings and can be reached walking 1
hour.
General view: Colchane and the Bolivian border
Beneficiaries
1. The community
The community of Pisigachoque is made up of 12 families (around 50
people), all Aymars. The majority of the population is old people: the
youngest tend to migrate to Iquique (260 km) or to other cities.
All the beneficiaries are farmers; they raise alpacas and sheep, have Raising llamas and alpacas
quinoa and potatoes crops. They use mainly traditional stoves. They
also spin alpaca wools (manually) and sell alpaca clothes in the
biggest cities.
238
2. The school
This school was created in 1959 and gathered up to 40 students. The school has currently 8 students
up to the 5th grade (for higher levels, children go to Colchane with the school bus), one teacher and
one teacher assistant. Children study together, in one class and with one teacher. The main teacher
arrived in the community in March 2013. She is originally from Arica but studied Aymar language
and intercultural education. She was willing to teach in rural areas. Since Arica is far away (several
hours by car), she lives in a house located in the school buildings.
The teacher assistant is an education student: she is doing a three months internship in this school to
complete her degree. She lives with a relative in Colchane (she is from Iquique).
Situation before the project

The project started thanks to the idea of an entrepreneur of Iquique, who used to go to
Pisigachoques school during Christmas to give presents to the children.
Houses are closed to each others: there is a central
place, a church, a school. All the houses of
Pisigachoque and the school are connected through a
grid, linked to a diesel generator in Colchane.
Nevertheless, the electricity is provided only 2 to 4
hours a day, from approximately 7pm to 11pm, for a
monthly cost of 3500 Chilean pesos (around $7USD)
according to a community member. Teachers in
Colchane explained that at least on day per week,
there is no electricity, usually because of technical
issues or from the lack of diesel (diesel comes from Pisigachoque central place
Iquique). That is why people are still using candles.
People use also flashlights and throw batteries in the normal garbage, which is usually burnt in
Colchane regardless of pollution risks. The administrative buildings and the health center have
another generator, which works (although not always
very well) during day time.
As a consequence, the school of Pisigachoque had no
electricity during day time, preventing the use of
computers, TV, printer, etc. For instance, the teacher
needed to prepare class material (such as photocopies)
back in Arica because there is no printer in the
surrounding areas (except in the high school in Part of the electronic devices kit given by
Colchane but she was not always allowed to use it).
the State
239
But is has to be mentioned that the school has had a

lot of electronic devices for several months, thanks to
a governmental project: TV, computer, printer, DVD
reader, speakers, etc. These devices were not used
because of the lack of electricity.
The school has also old solar water heaters: they are
not working any longer (the very low temperatures
froze the water froze and the tubes got damaged).
Broken solar water heaters
Project description
The foundation Desafio Levantemos Chile installed 12

solar panels in the school and 3 solar water heaters.
Benefits
Solar panels and solar water heaters
Electricity is used for two main purposes:

-
For pedagogical purposes: PPT presentation,

teach how to use internet, games, video for
leisure times.
For the house of the teacher: she can prepare the
next classes during the night and have leisure
activities during her free time such as watching
TV72.
Teachers house
72
Based on my previous experiences, it a very important aspect: teachers from the cities are generally very
reluctant to work in rural areas because of extremely difficult living conditions (no heater, no hot water, no
electricity, etc), resulting in sometimes the desertion of the classes sooner that it should be. In Pisigachoque,
the teacher explained that temperature can reach -18 Celsius.
240
Technical aspects
Each solar panel has a power of 120 W. According to Cristin ORyan, the system is over dimensioned
in comparison to the needs, but the extra electricity could be used for extra activities with the whole
community.
Managing model
The teacher is responsible for the good maintenance of the site. In case of problem, she can call a
technician from the company which installed the system.
The systems were installed for free.

Only the teacher has been trained but Desafio would like to train technicians in the community.
Lydia has two daughters, both studying in Pisigachoques school. She has 20 sheep. She speaks
aymar but did not really teach her language to her children.
She spins the wool manually. She uses she electricity from the grid for lighting, watch TV, charging a
cell phone, but mentioned that the electricity was not very reliable. She pays 3500 Chilean pesos per
month ($7USD) for electricity.
241
III.8
November 2013, Esmeraldas (Ecuador) SEBA and FEDETA, solar panels
Field study
Date: 22nd of November 2013

Location: Community La Ye del 5to Piso, Esmeraldas region, San Lorenzo district
Name of the project: Fostering Rural Development through hybrid solar micro-grids in Esmeraldas
communities (Fomento del Desarrollo Rural mediante Microrredes Elctricas de Generacin Solar
hbrida (MGS) en comunidades de Esmeraldas - FOMDERES-MGS)
Project duration: 2006
Contact person to go to the community: Guillermo Verdesoto (presidencia@fedeta.org) is the
president of Fedeta. He has been working with this NGO for 20 years.
Number of interviewed people: 2 people: the manager of the systems (Eduardo Tarira) and
Guillermo Verdesoto, president of FEDETA.
Budget of the project: around 100 000 USD$ (according to the project design document)
Number of beneficiaries: 16 households through the micro-grid and 8 families with solar home
systems (SHS)
Funders: San Lorenzo city, Barcelona City Hall
Implementing organization: SEBA(Association of Autonomous and Basic
Energy Services) is a Spanish association, founded in 1989
(http://www.seba.es) .
The Ecuadorian NGO Fedeta (www.fedeta.org), funded 20 years ago,
contributed to the maintenance of the project. Fedeta is the biggest
Ecuadorian NGO working on energetic solutions.
Planning of visits:
The first day, we intended to visit a micro-hydro central in the natural reserve of Las Golondrinas,
implemented by Fedeta for the Ecuadorian foundation Las Golondrinas, near the community Las
Juntas, district (Parroqua) of La Carolina. The MHC was installed in 2004-2005 with financial
resources from Belgium. This region is at the limit between the highlands and the coast, the climate
242
is warm but not as much as in the Coast. People are farmers (pigs, chicken, wood, fruits, etc.) and
mainly are mainly Afro-Ecuadorian.
The project started when Fedeta got in touch with the district of La Carolina, a village located at one
hour by private car from the regional capital of Ibarra. The city Hall told Fedeta about the president
of
the
GolondrinasFoundation,
Maria
Elisa
Manteca,
(http://www.fgolondrinas.org/es/index_es.html). This Foundation is dedicated to agricultural
training and built some housing for volunteers: they needed to electrify the log cabins for the
volunteers. FEDETA did follow-up and maintenance for 2 to 3 years.
Since the Golondrinas Foundations president did not answer to

our call, we were not able to visit the installation. We managed
to go to the small village of Las Juntas, where the road stops
(afterwards, it is necessary to walk for 1 hour to get to the log
cabins, where the MHC is installed). In Las Juntas, we interviewed
a few people living there. (Las Juntas is made of 20 families and
16 children). They mentioned that there have not been any
tourists in the community for several months. According to these
people, the turbine stopped working 3 years ago.
The second day was dedicated to the visit of the community of
La Ye del 5nto piso, where a solar micro-grid had been installed
in 2006.
Village of "Las Juntas
243

The community of La Ye del 5to Piso is
located in the Esmeraldas region, near the
Pacific North Coast of Ecuador. The community
is 10 km from the main road, linking the capital
of the region (Esmeraldas) to San Lorenzo, one
of the major city (close to the border with
Colombia). Two or three buses come every day
to go to the nearest city: it lasts 1 hour and
costs 1.10 USD$.
The main activities of the region are cacao and
palm tree crops. The climate is tropical (hot and Palm trees
humid).
Deforestation is a major issue: between 1990 and 2010, Ecuador lost one third of its forest (UNDP,
Human Development Report 2013). Esmeraldas is one of the Ecuadorian region which has been
most affected, to be able to grow cacao trees, palms trees or to breed animals (mainly cows).
Beneficiaries
The community is made of colonos, in other words people from the city who decided to go to the
country side a few years ago (in opposition to Amazonian people or Afro-Ecuadorian, who have been
living in this region for centuries).
244
There is a school in the community but no health center: a doctor comes to the community every 3
months. Otherwise, the people can go to the near city of San Lorenzo (one hour with a private car).
One house of the community
The community school
Project design
This specific community was chosen according to:
-
Poverty level
Community organization
Distance from the national grid
Participation/will of the community
Project description
General view of the community
In 2005, the community was identified for the
project, by the city council of Barcelona. They involved the San Lorenzo city for the project
sustainability.
In 2006 was installed a micro-grid of solar panels for 16 households, and 8 SHS for the households
which were too far from the grid.
The community was connected to the national grid in April 2013 and the objective is thus to take the
solar panels back and to install them in another community (Rascaderas community). In this
community, the process is now to identify the future beneficiaries.
245
Nevertheless, the transfer of the panels was delayed: the CNEL (Electrical Company) said they would
take back the solar panels around April 2013 but in July 203, they said that it would not be possible
any longer. A few months later, the CNEL decided to take back the panels but at the time of the visit
(November), the transfer process was still blocked because the CNEL needs to send an official letter
to the city hall of Barcelona (founder of the project) to validate the solar panels transfer and the
transfer of the panels ownership to CNEL. 2 technicians from CNEL were supposed to come to the
community of la Ye but it seemed that CNEL never sent them.
During the visit in the community, I interviewed the administration manager and was able to listen to
the comments of 2 other people of the community. These two people did not understand why the
company wanted to take the solar panels back. They thought that the solar panels would be the
community property. There are some conflicts with the community president, who claims to have an
official paper saying that it would be so.
Benefits
People have usually a TV, radio, lighting. With the solar panel, they could use blender only when it
was sunny.
With the national grid, there are no limitations: they can iron clothes, have a fridge, etc.
Technical aspects
Mini-grid:
Solar Home System

For each installation
30 solar panels of 100W

24 batteries (2V each)

2 batteries of 12V
246
Maintenance
It is complicated to get distillated water for the solar panels: it is necessary to order it in the capital,
Quito. Eduardo Tarira, a community member who owns a small shop (see his story afterwards) was in
charge of checking the liquid level and collecting the fees. Another technician was supposed to help
him but Eduardo Tarira happened to do most of the work by himself. When the solar panels were not
working properly, people used to pay less. In 2010, FEDETA joined the project for follow-up and
additional training for 2 years (approximately once every 3 months). Before, the follow-up was very
punctual.
According to the report from a follow-up visit in 2012, corresponding to the project after 6 years:
-
Among the 8 SHS, only one has been working without any problem during the 6 years. 2
users changed the batteries in 2011, one user had damaged the invertor and 3 households
had battery problem. One user uninstalled his system.
- Among the 16 households benefiting from the mini/grid, one user gave up the system for not
paying the fees.
Apparently, maintenance was easier with the mini-grid.
For recycling, Ecuadorian cities try to foster environment managers, that is to say people who
collect cellphones, clothes, etc, for recycling.
Managing model
One person was in charge of the administration (collect the fees Eduardo Tarira). Eduardo Tarira
received no benefits for his work, but he did not have to pay the 6$ per month to be able to use his
installation.
All the solar panels are in a good estate and none of them have been stolen (except at the beginning
of the project: 3 solar panels were stolen 7 years ago). Two or three batteries had problems even if
their lifespan is supposed to be 15 years.
With the solar panels, people paid 6$ per month, regardless of their consumption. They had to pay a
fee of 2$ when the payment was delayed. Most people used to pay on time. With the national grid,
the payment depends on the consumption. According to Eduardo Tarira, old people with only a few
needs pay around 3.5$ per month, while families pay 8$ a month. As far as he is concerns, he pays
33$ a month because he has a small shop with fridges. Electricity allowed him to raise his incomes:
229
before, he had a diesel generator to produce

electricity for his fridge but it was far more
costly. He said that with the national grid,
people are using more electricity. They buy
fridges for example.

The implementing NGO (SEBA) explained to the
community that some devices cannot be used,
such a blenders.
Two explanatory sheets were put in each house.
248
Eduardo
Eduardo Tarira has been in charge of

collecting the fees for the solar panels
(administrator of the project) for 7 years.
He has 4 children; the youngest is 10 years
old. He has cacao crops (a thousand cacao
trees), fruit (coconuts, oranges, mandarins,
etc.) and 50 chickens. He cannot dry the
cacao so he sells it to a cooperative in another community.
In La Ye del 5nto Piso, Eduardo owns a small shop where he sells drinks and rents billiards. He has
also frozen dishes such as chickens.
He said that the national grid is not always efficient, there are power cuts (when I visited the
community, the electricity has not been working for a few hours), which is a problem for his
business, especially to keep frozen products.
He has another house in the city of Borbn. In Borbn, he pays 5$ to have electricity to someone
who owns a generator and he hopes to be connected to the grid soon.
Billiards renting
Drying the cacao
Cacao crops
249
III.9
November 2013, Bolivar (Colombia) Ipse, followers solar panels
Field Study
Date: Friday 29th of 2013
Location:
Colombia
Isla
Fuerte,
Bolivar
Department,

Name of the project: Solar followers (Seguidores
solares)
Implementing
organization:
Colombian
Government through IPSE (Institute of Planning
and Promotion of Energy Solutions for nonconnected areas), http://www.ipse.gov.co
Contact person to go to the community: Carlos
Neira, director of IPSE, direccion@ipse.gov.co ,
Claudia Molina, Social and Environment Managing
Center of IPSE, claudiamolina@ipse.gov.co
Number of interviewed people: 4 people living in the island (2 housewives, the librarian, one
fisherman), a school teacher, the doctor in charge of the health center, 2 IPSE engineers in charge of
the project, the community leader.
Budget of the project: 4 000 000 000 Colombian pesos (approximately USD 2 million).
Number of beneficiaries for solar panels: 1800 people
Funders: Colombian Energy Ministry
Context of the visit: I visited this island during the
annual conference of IPSE. As a speaker, I was
invited by the Colombian government to visit this
project. As a consequence, I had to follow the official
visit and the possibility to interview community
members for a long time has been limited73.
Official picture of the visit

73
http://www.ipse.gov.co/ipseactual2013/index.php?option=com_content&view=article&id=628%3Aislafuerte-bolivar-recibio-a-conferencistas-del-ix-simposio-internacional-deenergia&catid=193%3Anoticias&Itemid=541&lang=es
250
Isla Fuerte is located in Bolivar Department, 11km from the Coast of Morrosquillo golf. Isla Fuerte
can be reached by boat or by helicopter (50 minutes from Cartagena of India). Every day, a boat
comes from Cordoba to sell products such as rice, sugar, etc.
The climate is tropical.
According to Claudia Molina, Isla Fuerte it is a pilot project. She mentioned it is very different in the
Amazonian region, where usually people do not want light in their houses, only for their schools and
health centers.
First views of the island
Beneficiaries
The island covers 300 hectares and houses 1800 people (360
households), mainly Afro-Colombian people. Main activities include
fishing, agriculture (manioc, bananas, hot chilli, tomatoes, etc.) and
navigation. Only a few tourists come to the island because of the lack
of public transportation.
Fishing boat
The school
The school gathers 400 students, up to the 11th grade (corresponding to students of 15/16 years
old). Some of them study with the Sena system, in the Island (National Learning Service).
251
The school received last week 40 computers,

thanks to a partnership with three Ministries:
Energy Ministry to provide electricity,
Communication Ministry to provide internet
and Education Ministry to provide the
computers. Younger children are taken care of
by their mothers or by a community
organization called ICBF (Institute for Familiar
Well-Being), where people pay 10000
Colombian pesos a month (approximately
IPSE director with the new laptops for the school
USD5) to leave their children.
Some buildings are called bioclimatic areas, such as the library of the
community and one building in the school. These buildings are made
off local materials such as stones (piedra Carolina) and Cana fleche,
and are cooler than normal buildings.
Bioclimatic building
The library
The library is run by a woman who arrived in the community three

years ago, on a voluntary basis. It is also used for alphabetization
classes for adults (around 35/50 students).
The library with its solar panels

The health center
The health center is managed by a doctor, who spends 3

weeks in the island and one week in Cartagena. A total of 6
people are working in the health center, including one dentist.
According to the main doctor, the most common diseases in
the island are related to food (diabetes, hypertension) but
there are also a lot of emotional diseases, especially for the The health center
252
women (stress) because of lack of activities while men are working.
The collection center
The collection center allows fishermen to freeze fishes, lobsters and

other seafood products and to be able to sell them when prices are
higher. Before getting electricity and fridges, they were obliged to sell
them the same day, often with very low prices.
Situation before the project
According to one of the community leader, before, getting electricity, A fisherman

people used diesel for lighting and in a lesser extent, candles. They
used 0.5 liter of diesel per day, for 400-500 Colombian pesos (the price of diesel has raised since,
reaching up to 3000 Colombian pesos for half a liter of diesel).
Project description and technical aspects
In 2006, the mayor of the island asked for electricity. The electrification project of the island started 3
years after, in 2009, with the objective of giving 12 hours of electricity per day (from 6pm to 6 am) to
the households. Electricity is generated by movable solar panels (2 systems of movable panels of 12,5
kW each, they move along with the sun to get more energy) and two diesel generators of 135 kW
each. Solar panels cover 10% of electricity demand, whereas the diesel generator provides for 65% of
the demand.
There is a tower to measure solar radiations, pressure, etc. The diesel comes from Cartagena, once a
month. They consume 200/300 diesel galleons every 2/3 days.
The library and the collection center have their own solar panels (for the library : 1kWp, installed by
the company Hybrytec with dry batteries since September 2013 74).
At the beginning of 2014, they should install more solar panels to be able to have electricity all day
long.
74
See http://www.hybrytec.com/cmanager/adminuploads/prod_arch_adic_04011368N4GZ.pdf
253
Benefits and technical aspects
Solar and diesel plant : The plant was built near the cemetery because the diesel generators are noisy.
The health center and the school have already electricity all day long, although the doctor of the
health center mentioned that power cuts happen frequently.
Concerning private households, people have usually two lamps, one blender, 2 fans, a TV. Generally
speaking, only shops tend to have fridges as well. Households consumption is around
27/28kW/h/month.
Community people explained to me that there are sometimes power cuts when there is no more
diesel. In addition, currently there is a plant which is not working any longer because a piece of it got
broken.
254
Managing model
A cooperative company was created to

collect the fees in the island. The fees are
subsidized to match peoples payment
capabilities.
A square in the village

According to the manager of the cooperative company, Justino Barrio, who has been working since
2008 in the island, people pay 140 Colombian pesos for 1 kWh (USD 0.07). There are 340 households
in this situation. Each house has a meter, except 14 or 18 houses because they were not built yet
when the plant was installed. Only 10 to 15 households have payment problems. When payment is
delayed, there is a fee of 2%. If people do not pay after a month, they lose electricity access. The 13
small shops of the island have a higher fee of 400 Colombian pesos kW/h (USD 0,2).
In this invoice, we can see that this particular household had a 30kWh consumption and paid 4
075 Colombian pesos for this consumption, in addition to 3 426 Colombian pesos for public
lighting. The subsidy from the State is 25 408 Colombian pesos, covering 86% of the private
electricity cost.
255
III.10 December 2013, Lima (Peru) Market study
On December 10 of 2013, we went (with my colleague Badr Ben MBarek) to the central market of
Lima to get an idea of the products that are sold for general consumers to provide them with
renewable electricity and lighting.
The first aspect to be mentioned is that it was difficult to find shops with this kind of products. We
asked a few Peruvian companies or Peruvian NGOs working on renewable energy but got different
answers related to the purchase places.
We went to the Central Market of Lima (near the city center) and were advised to go to Paruro
street, a popular place for electronic devices. After asking several people in the area, we found a
small shopping gallery with several shops selling solar products, in Paruro 1359 (in Peru, market are
generally very concentrated and dedicated to one type of products).Sellers in approximately 10
small shops were interviewed (the prices and the information gathered here represent thus the
sellers opinions).
The most common products were:
-
Solar lanterns
Solar panels (and batteries, charge controller, invertor, etc.)
Solar lanterns:
Model
Price
Ewtto
20 NS - 25 NS
Characteristics Integrated solar

panel of 1W
SunTransfer
150 NS
GP Solar
125 NS - 140 NS
Independent
solar panel of
2Wp
Independent solar
panel of 2Wp
Charging time
Use
1 hour
4 hours of light
Origin
Picture
China
6-150 hours
depending on
intensity
Germany
Other
Most popular in
Peru
Can charge
cellphones
Unknown
Independent solar
panel of 1,3Wp
SunKinPro
80NS-160NS (depending
on the model
Different models:
Independent solar panel
of 0.5Wp-2.5W
A few hours
30 hours of light
China
Charge cellphones.
The solar panel is
flexible
China
US
Can charge cellphones

(except for the small
model).
256
Solar panels:
Solar panel
Brand
None
Price
330 NS
Characteristics 90W
Origin
China
Solar panel
None
52 NS
5W
China
Solar panel
BP
100W
US
Solar panel
Solar World
600NS
80W
US
Solar panel
None
340NS
85.5W
China
Solar panel
Nome
550NS
85.5W
Japan
SHS components:
Brand
Price
Characteristics
Origin
Other
Battery
Battery
Unknown
460NS
100A
China
Lifespan of
3 years
Unknown
600NS
100A
Japan
Lifespan of 5
years
Charge
controller
Unknown
80NS
10A
Unknown
Charge
controller
Unknown
140NS
15A
Unknown
Inverter
Inverter
Inverter
Unknown
290NS
600W
Peru
For direct
and
alternate
current
Unknown
180NS
600W
China
Unknown
1850NS
600W
Germany
Pure sine
wave
Others:
Windturbine
Solar radio and

lamp
70 NS
Solar Pack - Powa

Pack
Unknown
Blender
Characteristics 600W
Solar panel as
cellphone charger
35 NS 55NS (with
the plugs)
3W
Unknown
5W
Origin
China
China
To be charged
during 1 or 2 hours
Has a dynamo as
well and a
cellphone charger
Australia (Barefoot
Power)
2 lamps, cellphone
charger
Powered by two 6V,

4.5AH rechargeable
batteries
US (Coleman)
Price
Other
4800NS
Canada
(SunForce)
Lifespan of 15
years
380NS
Can be charged with

the grid or a 20W
solar panel
257
III.11 Short field visits
This document gathers interviews and short observations led during non-formal field studies, taking
advantage of week-ends and holidays.
Field study: Casera Marampata - PERU
Date: Friday 11th of October of 2013

Location: Casera Marampata, Choquequirao, in
Cusco Region - PERU
Duration of the field study: informal conversations
Name of the project: none
Contact person to go to the community: none
Number of interviewed people: 3 people
Implementing organization: none
Choquequirao ruins
Casera Marampata is located

at 2900 meters above the sea
level and the nearest city is
Cachora, at 25km. There is no
road to Cachora: this city is
reachable with 1-2 walking
days, or with a horse (1 day)
from Casera Marampata. This
community is the last one
before reaching the Inca ruins
of Choquequirao and one of
the main economic activities is
tourism (catering for tourists,
and camping sites).
258
Around 12 families live in this community.

People have corn, wheat crops and some
animals (guinea pigs, chicken, pigs).There is
neither school nor health center in the
community. Children are sent to Cachora to
study and come back to their community
only for holidays.
Casera Marampata
Electricity context
According to the community members, this place will never be electrified with a national grid
because it is considered as a protected area because of the Inca ruins.
People get light though lanterns, solar lanterns or classical model with non-rechargeable batteries. As
far as solar lanterns are concerned, a seller came to the community and sold lamps, for a price of 400
NS (around 100 each). Phocos model is the most popular, even though one user said other models
are also used in the community.The lamp can be loaded in 2 days.
Use of solar lanterns
Three users were interviewed:

User 1: these lanterns work well but get
damaged quickly. He said that the panel is
small and get damaged by the rain: it is
necessary to protect it. When the panel is
broken, they can replace it.
User 2: her lamps are working well; she
uses them in her kitchen above all. She has
had her lamp for 3 years. To walk, this
family prefers using frontal lamps.
User 3: his lamp is not working any more (he has had it for two years). He tried to check the system
himself combining it with his cousin lamp and concluded that the batteries were the problem. He
plans to buy a solar panel with his own resources and to buy new batteries.
259
Field study: Cusco markets - PERU
Following the indications of NGOs, I went to 3 different markets to check the models of solar lanterns
that are sold in Cusco. I found only one model for 15 NS, with a very small solar panel (3 cm2) which
was integrated to the lamp.
All the people I asked did not know where it is possible to buy such lamps.
260
Field study: Titicaca Lake, Uros floating island - PERU
Date: Saturday 19th of October of 2013

Location: Titicaca lake, Uros island of Titinu Manco Capac, in Puno Region - PERU
Duration of the field study: informal conversations with the president and a member of another
island
Number of interviewed people: 2 people including the president
of the Titinu Manco Capac island (Aurelio) and the guide of the
travel agency
The Uros floating islands are made of 70 islands and have 3 three primary schools. There is no
secondary school; teenagers need to go to the continent (for example, to the city of Puno, around 30
minutes to two hours by boat). The islands are made of Totora reed: people need to add new layers
of Totora every week because they go off (an island can last up to 25 years, afterwards the reed is to
rotten to be used any longer. Building a new island lasts approximately one year). Houses as well are
made of Totora and traditional boats as well, even though people tend to use more motorized boats.
Kitchens are outside the house to prevent wildfires. Sanitation system is simple and located outside
of the island. There is no health center on the island: people need to go to the city of Cachica.
Electricity access
The islands are anchored to prevent them from moving. Main activities of the communities are:
fishing, birds hunting and breeding, and tourism (selling handicrafts, boat tours). Tourism is critical
because of the decrease of birds and fishes. The islands receive tourists on an alternation way.
None of the islands have access to the national grid due to isolation. A member of an island said that
Fujimori government offered for free solar panels in 2000 or so (although another person said it was
20 years ago), and people had to pay back the solar panels within 5 years. He said usually, people use
2 candles a day for lighting but Aurelio, president of the community, said one candle lasts for 4 hours
(and costs 0,50 NS).
261
The island I visited is made off 9 houses: 6 families (23 people) are living on this island. The president
of the community (Aurelio, 47 years old)explained that a wildfire destroyed almost all the island 7
years ago. The year after, a French tourist visited the island and offered a solar panel to this island
and another one on his own initiative.
Aurelio said the solar panel is used for lighting (2 hours per day), television. They have not changed
the battery since the solar panel has been installed. Thanks to the solar panel, the community do not
buy any longer candles: they used to buy 12 candles per week, for around 5 NS.
Tourism is the main income source
Almost everything in the island is made of totora reed
262
Field study: Titicaca Lake, Taquile island - PERU
Date: Saturday 19th of October of 2013

Location: Titicaca lake, Taquile island
Duration of the field study: informal conversations with a Taquile family and an inhabitant of the
island
Taquile Island is located on the Titicaca lake (Peruvian side), at 3600 meters above the sea level and
is one of the biggest islands of the lake. The island can be reached after approximately 3 hours by
boat from the regional capital of Puno. It is one of the most visited sites in Peru, because of its
landscape and the islanders traditional culture, still very vivid (Taquile islanders speak quechua and
have a strong weaving tradition: for example, men are in charge of weaving wool hats, indicating
their marital status). Islanders created rotational systems so that tourists go alternatively to the
different restaurants, in order to bring equity to the different families. Titicaca lake inhabitants are
much richer than the rest of Puno region thanks to tourism-based incomes.
According to our guide, 2000 people live in the island (500 families), representing 6 communities.
Their main activities are sheep breeding, cows and tourism. There are neither horses nor monkeys or
cars before they prefer agricultural activities.
Electricity access
In Taquile, one inhabitant reported that he bought a 80w solar panel for 800 NS, providing electricity
for 3 lamps, one TV and a radio. He said most of Taquile inhabitant bought their own solar panels. He
has as well a D-Light, that he bought in Cusco 4 years ago and used 2 batteries.
He said that the island school was electrified through a project (might be Eurosolar): before, people
used kerosene and candles.
263
The short visit allowed me to talk to Marcelino, a 28 years old islander who owns a restaurant called
el Rinconcito, with his wife and his brothers and sisters. He bought a solar panel 5 years ago. He
said the battery lasts only 1 to 2 years. Before, he used a wick lamp with kerosene, built with a Gloria
milk box. He reported that there was a lot of smoke, leading to headaches. He used one galleon of
kerosene per week with this system.
Marcelinos family
264
Field study: Mizque - BOLIVIA
Date: Tuesday 22nd of October of 2013

Location:community Calera Chica, Mizque Municipality,
Cochabamba department, Bolivia
Duration of the
conversations)
field
study:
15
minutes
(informal

Number of interviewed people: teacher of the school
The school has only 7 students, in addition to curious children who are under aged for school but
who informally attend school, because it is the only activity in the surroundings. Last year, the school
almost got closed because of the lack of children.
The school has two solar panels: the current teacher has been working in this school since 2005 and
reported that the solar panel had been working only for one year. As a consequence, the solar panel
has not been working for 7 years, apparently due to a battery problem.
The teacher lives in Mizque: she has to walk 2 hours to reach the school. As a consequence, she
sometimes stays overnight in the school. When she stays there, she used candles for lighting. The city
hall told her there is no budget to charge the solar panel battery.
265
IV.
Carbon analysis
IV.1
Lighting projects
IV.1.1 Lighting: Eligibility criteria to enter carbon markets
Possible eligible interventions :
- Distribution of the lanterns

- Setting up of a distribution channel for targeted populations to access them more easily and at a
lower price
Size:
The total emission reductions of a project have to be less or equal to 10 000 tons of CO2 a year,
which represents the diffusion of approximately 130 000 lanterns.
Baseline lighting fuel:
It is necessary to demonstrate that fossil fuel is commonly used for lighting among the targeted
population through representative sample surveys, official data or peer reviewed literature.
Lanterns power supply:
The lanterns must be battery-charged, and within the framework of this project, we will only
consider the case where the batteries are charged by a renewable energy system included as part of
the project lamp.
Light bulbs:
The lanterns must use efficient light bulbs, such as LED or CFL.
Battery disposal:
Project proponents must ensure compliance with prevailing regulations pertaining to the use and
disposal of batteries.
Warranty:
The lanterns should be covered by a warranty of a minimum of one year, starting from the
distribution date to end users, which includes at a minimum free replacement or repair of any failed
lamps, batteries and solar panels.
Performance characteristics:
The lanterns performance characteristics shall be proven by a third-party testing organization

through sample tests, using applicable national or international standards.
266
Two different approaches may be used to valorize the lanterns on the carbon market, and this choice
will have an effect on the technical properties required.
Option 1
Option 2
Emissions reductions only claimable

for two years
Emissions reductions claimable for up to

seven years
Great simplification of the monitoring

process
Additionnal data to be monitored
More strigent compliance requirements

regarding the lamp characteristics
Fewer limiting factors concerning the

lamp technical characteristics
Simple
emissions
calculation
reductions
Both options may be used in a single project activity, but the option selected for each lamp must be
specified before its distribution.
The technical characteristics to comply with can be summarized as follows:
Option 1
Light Output
Option 2
From a distance of 0.75 meters :

Luminous flux of 20 lumens or illuminance of 25 lux over an area 0.1 m2
Over a 2,000 hour lumen
maintenance test, should not
decline by more than 20%
Over a 2,000 hour lumen

maintenance test, should not decline
by more than 15%
Rated average
life
At least 5000 hours
At least 10 000 hours
Battery
Replaceable, chargeable battery

Access to replacement batteries of
comparable quality must be ensured
Daily Burn Time

Autonomous
Time
Solar Run Time
Ingress
protection class
For portable lanterns :
267
Definitions
o
Daily Burn Time (DBT): Total number of hours per day that the lighting system must operate
Autonomous Time or Autonomous Run Time (AT): Maximum possible run time, also known as
battery autonomy. AT is expressed in hours.
Solar Run Time (SRT): Operational time from a day of solar charging under standard solar day
conditions (default value of 5 kWh/m2 for the incident radiation, in the absence of regional solar
data).
Rated Average Life: Life certified by the manufacturer or responsible vendor as being the time at
which the lamps initial light output will decline by no more than 30%
Ingress protection (IP): Classification defining the minimum level of protection against physical
ingress and water protection achieved by the lamp
268
IV.1.2 Lighting: Costs and benefits analysis
Two entities take part in the process: the LPP (Local Project Proponents) and the CME
(Carbon Management Entity). While the LPP are directly in charge of the project implementation, the
CME helps them access the carbon market.
During the different stages of the project, they share the tasks to be carried out.
Validation
Verifications (every two

years)
Design of the project
Project
implementation
Training
Distribution of lanterns
Data quality control (CME)
Carbon
documentation and
certification
Constitution of sales
record
Carbon documentation
Monitoring (LPP)
Carbon credits certification
269
Lantern projects can be valorized on carbon markets on the carbon market for a duration of 2
years or 7 years. Depending on the option chosen rules to comply with will be more or less stringent:
Option 1
Option 2
Emissions reductions only claimable

for two years
Emissions reductions claimable for up

to seven years
Great simplification of the

monitoring process
Additional data to be monitored
More stringent compliance

requirements regarding the lamp
characteristics
Fewer limiting factors concerning the

lamp technical characteristics
Simple emissions reductions

calculation
Both options may be used in a single project activity, but the option selected for each lamp must be
specified before its distribution.
I.
Actions to be carried out by each party
LPP (Local Project Proponents)
To ensure the entry of its project on the carbon market, the LPP will first have to organize a
Local Stakeholders Consultation to provide information on the project to those concerned and give
them the chance to discuss the possible effects it may have. It will represent about two months of
work.
Furthermore, in the specific case of lanterns, it will be necessary to demonstrate that fossil
fuel is commonly used for lighting among the targeted population. If no adequate literature is
available, the LPP will have to carry on surveys which are estimated to take about three months.
Throughout the project, the LPP will also have to monitor the number of project lamps
distributed to end-users and the date of their distribution, which means it will need to keep sales
records of the project activity. If the option 1 is chosen, only the delivery date and type of lamps have
to be recorded. In the case of option 2, it is also required to record data to unambiguously identify
each recipient of a project lamp. This is estimated at two days of work per month for the option 1,
and four days per month for the option 2.
270
If the second option is chosen, it will also be necessary to monitor the proportion of project
lamps operating and in service. The LPP will have to carry qualitative surveys during the third year of
the crediting period, which are estimated to take about three months.
In any case, the LPP will have to develop the Continuous Input Mechanism, in order to
collect and consider the beneficiaries and stakeholders comments all through the project. It
corresponds approximately to two weeks of work a year.
CME (Carbon Management Entity)
Generally speaking, the CME is in charge of the coordination of the whole carbon process
and of the relations with the Standard. Its work throughout the project may be summarized as
follows:
Validation:
-
Train the LPP to the carbon process and collect all the documentation required
Supervise the SHC
Design the carbon scheme and the PDD
Supervise the carbon certification
Verification:
-
Produce the carbon documents required (MR) every 2 years

Supervise monitoring the 3rd year if option 2 is chosen
Collect data and control it
Supervise periodic carbon certification (verification review)
It is estimated that the LPP training and the data collection will take about two months, and the
organization of the SHC, two weeks. Writing the PDD and supervising the validation are estimated at
an additional month of work each. All in all, the Validation phase corresponds to eighteen weeks of
work for the CME.
As for the Verification phase which includes the data quality control and analysis, the drawing up
of monitoring reports and the selling of carbon credits, it is estimated at two months of work
approximately. It has to be conducted biennially.
II.
Revenues
The benefits come from the carbon credits generated by the project. One carbon credit
corresponds to the avoidance of the emission of the equivalent of one ton of CO2.
271
The emissions reductions are equal to the emissions which occur in the baseline situation minus
the emissions associated with the project. However, in the case of solar lanterns, project emissions
are equal to 0.
Thus, emissions reductions are equal to the baseline emissions, which are given by:
With:
: Baseline emissions in year y
: Number of project lamps of type i distributed to end users
: Percentage of project lamps distributed to end users that are operating and in service in year
y, for each lamp type i
: Dynamic Baseline Factor (change in baseline fuel, fuel use rate, and/or utilization during
crediting period) in year y
DV : Lamp Emission Factor (tCO e/lamp)
2
Factors
Option1
Option 2
Dynamic Baseline Factor
Default value of 1.0 in the absence of

relevant information
1.0+FFg
FFg : Documented national growth rate
of kerosene fuel use in lighting from the
preceding years, expressed as a fraction
The most recent available data for a
three or five years average is to be used
DV
Lamp Emission Factor
(tCO2e/lamp)
Default value of 0.092 t CO2e/year per project lamp
= 100%
Percentage of project
lamps distributed to end
users that are operating
and in service in year y,
for each lamp type i
OFy,i = 100% for years 1, 2 and 3, and

equal to the value monitored the third
year for the years 4, 5, 6 and 7
Thus, in the case of option 1, the emissions reductions are simply equal to the number of
lamps distributed times a lamp emission factor. Its default value- 0.092 t CO2e/year per project
lamp- might be modified with adequate justification. We estimate that reasonable hypothesizes,
could double the emission factor value.
272
The following table shows the expected carbon revenues over a crediting period in two
scenarios: the diffusion of respectively 10 000 and 50 000 lanterns.
Carbon revenues over

the crediting period
Carbon revenues over
the crediting period
Option 1
Option 2
Option 2 with a
higher DV*
18 kUSD
60 k USD
120 kUSD
92 kUSD
300 kUSD
600 kUSD
Hypothesizes:
- Price of 1 carbon credit: 10 USD
- DV is set at default value (possibility to increase it with appropriate justification is not considered
here so the results represent a minimum revenue reachable)
- Proportion of lamps still in operation the third year for the option 2 is set at 70 %
*The lower bound of the revenue for option 2 corresponds to the minimum of carbon credits that
can be generated using the default factor DV provided by the methodology.
However the methodology allows using a more accurate factor higher than the default value, if
appropriate justification is provided at the registration of the project. The Andean context and the
type of lamps that are distributed, we think that it is possible to provide justification that the factor
DV can be until 2 times higher than the default value. The higher bound of revenues thus correspond
to the maximum amount of carbon credits reachable with the biggest lamp model that could be
diffused in the Andean region.
273
IV.2 Electricity access projects

IV.2.1 Electricity access: Eligibility criteria to enter carbon markets
Potential project proponents should comply with various criteria:

Eligible energy sources:
Solar, hydro, wind, renewable biomass and biogas
Size:
The total emission reductions of a project have to be less or equal to 10 000 tons of CO2 a year.
This represents the electrification of approximately:
7000 poor households with relatively high electric needs (a fridge, fans, 3 lights, a radio,
cellphones)
10 000 poor households with intermediate electric needs (a fridge but no fans, lights, radio
and cellphones, etc)
42 000 very poor households with low electric needs (only lights, a radio and a cellphone)
Restrictions concerning the beneficiaries:
Beneficiaries outside the following categories are not eligible: Households, health centers,
dispensaries, schools, kindergartens, public administration buildings, trading places.
To sum up, if beneficiaries are private companies (factories, mines, etc) their energy consumption
must be deducted from the project ER calculation.
Grid access:
Only off-grid communities are eligible, except in the case of less than 50% grid availability during the
daily hours, on an annual basis.
Possible eligible interventions:
Installation of a new renewable energy based mini grid
Substitution of an existing fossil fuel based mini-grid with a renewable energy based minigrid
Substitution and expansion of an existing fossil fuel based mini grid with a renewable energy
based mini grid. Expansion includes both increasing energy supply to existing consumers and
inclusion of new consumers
Bringing into operation installed renewable power generation systems
Installation of power generation systems for individual consumers
In any case, only renewable electricity generation systems intended for permanent installation are
eligible (portable electricity systems are not).
274
Additionality of the project

Non-retroactive projects: simplified demonstration based on the poverty of the beneficiaries
Retroactive projects: additionnality to be demonstrated with the UNFCCC methods. It must be clear
that the project is upgraded thanks to the carbon income and that the project developer took it into
consideration before he implemented the project
Other criteria:
Specific eligibility criteria exist in the case of hydropower plants, biomass or biogas projects.
For example, in the case of a hydro power plant, it cannot be located in a High Conservation Value
area in terms of ecosystems or life and culture of local communities. Some additional issues, such
as competing uses of water resources or the analysis of minimal ecological flow, should be
thoroughly addressed. Furthermore, if it has a reservoir, the power density, defined as the ratio of
the reservoirs capacity on its surface must be higher than 4W/ .
275
IV.2.2 Electricity access: Costs and benefits analysis
Costs and benefits for renewable energy project (based on the methodology: Gold Standard :
Micro-scale electrification and energization
Two entities take part in the process: the LPP (Local Project Proponents) and the CME
(Carbon Management Entity). While the LPP are directly in charge of the project implementation, the
CME helps them access the carbon market.
During the different stages of the project, they share the tasks to be carried out.
Validation
Design of the project
Verifications (every two years)

Monitoring (LPP)
Submission to the Standard
Data quality control (CME)
Training
Carbon documentation
Carbon documentation and

certification
Carbon credits certification
276
I.
Actions to be carried out by each party

LPP (Local Project Proponents)
To ensure the entry of its project on the carbon market, the LPP will first have to organize a
Local Stakeholders Consultation to provide information on the project to those concerned and give
them the chance to discuss the possible effects it may have. It will represent about two months of
work.
Throughout the project, the LPP will have to deal with the monitoring and upkeep of the
installations. In the specific case of electricity generation systems, the monitoring required will
depend on the intervention.
Mini-grids:
Set at least an electric meter on each generation system

Meter reading and data recording at least once a month
Design of the lists of the beneficiaries at the project implementation and its update at least
once per monitoring period
Distributed individual systems:
Annual qualitative surveys on a sample of beneficiaries to monitor the proportion of

electricity generation systems still in operation
To perform this work, it will be necessary to hire a project coordinator. This coordinator will not
work full-time on the carbon market access but will possibly also coordinate thefollow-up and
maintenance of the project toensure itslong-run sustainability. Depending on the size of the project,
we estimate the coordinator will spend between40% and 60% of his time on carbon issues in the
case of mini-grids, and 20% to 25% in the case of distributed systems.
Furthermore, the LPP will have to develop the Continuous Input Mechanism, in order to
collect and consider the beneficiaries and stakeholders comments all through the project. It
corresponds approximately to two weeks of work a year.
CME (Carbon Management Entity)
Generally speaking, the CME is in charge of the coordination of the whole carbon process
and of the relations with the Standard. Its work throughout the project may be summarized as
follows:
Validation:
-
Train the LPP to the carbon process and collect all the documentation required
Supervise the SHC
Design the carbon scheme and the PDD
Supervise the carbon certification
277
Verification:
-
Produce the carbon documents required(MR) every 2 years

Supervise monitoring
Collect data and control it
Supervise periodic carbon certification (verification review)
It is estimated that the LPP training and the data collection will take about two months, and the
organization of the SHC, two weeks. Writing the PDD and supervising the validation are estimated at
an additional month of work each. All in all, the Validation phase corresponds to eighteen weeks of
work for the CME.
As for the Verification phase which includes the data quality control and analysis, the drawing up
of monitoring reports and the selling of carbon credits, it is estimated at two months of work
approximately. It has to be conducted biennially.
II.
Revenues
The benefits come from the carbon credits generated by the project. One carbon credit
corresponds to the avoidance of the emission of the equivalent of one ton of CO2.
The emissions reductions are equal to the emissions which occur in the baseline situation minus
the emissions associated with the project. However, in the case of renewable biomass, wind, run of
river hydro and solar, which is to say in the great majority of cases, project emissions are equal to 0.
Thus, emissions reductions are equal to the baseline emissions, which are calculated by
multiplying the amount of renewable electricity delivered in the project scenario by the emission
factor of diesel generators, which default value is set at 1.3 kg CO2e/kWh.
The amount of electricity delivered to consumers may be obtained in two different ways,
depending on the type of the installation. In the case of a mini-grid, it is necessary to meter the
electricity produced, while in the case of distributed individual systems, it may be calculated as the
installed capacity times an availability factor.
278
Mini-grid
(Renewable
electricity
delivered in a
year y)
Distributed systems
: Measured net amount of

renewable electricity produced in a
year at the renewable energy
generation system
: Transmission and distribution
losses
Default value : 10 %
With adequate justification, possibility
to use a lower value
IC : Installed Capacity of the electricity

generation system
A : Availability factor of the technology
Default value in the case of
photovoltaics: 12 %
For other technologies, it still has to be
proposed
As the Methodology is based on the suppressed demand concept, the Gold Standard has
capped the maximum amount of electricity delivered at a level called Minimum Service Level
corresponding to basic electricity needs. We do not know in advance the amount of electricity that
will be consumed by the beneficiaries. Therefore, to estimate emissions reductions, we had to build
different scenarios on electric consumption of the beneficiaries of the projects:
1. 3kWh/day/household: the maximum acceptable electricity consumption defined by the
Gold Standard in a context of suppressed demand (various lights, fridge, fan, and few
other basic electric devices). This scenario is quite unlikely in a context of first access to
electricity and high poverty.
2. 2 kWh/day/household: a situation in which households are a little poorer, and do not
own all electric devices defined as basic need by the Goldstandard (for example the
households do not have fans but only lights and fridge). Such situation is quite unlikely in
a context of rural extreme poverty but could occur in moderate poverty or semi-urban
area.
3. 500 Wh/day/household: represents a context of very poor households, with very few
electric devices (3 indoor lights, a radio, and two cellphones for instance).
The following table gives, in the case of households, the total annual electricity consumption, the
amount of emissions reductions and carbon income in different scenarios, depending on the size of
the project and the beneficiaries standards of living.
279
5 000 households
1 E = 5.5 GWh
ER = 7 100 tons
I = 71 kUSD
10 000 households
E = 11 GWh
ER = 14 000 tons
I = 100 kUSD (capped at
10 000 tons of CO2e)
E = 7.3 GWh
ER = 9 500 tons
I = 95 kUSD
E = 1 800 MWh
ER = 2 400 tons
I = 24 kUSD
2 E = 3.7 GWh
ER = 4 700 tons
I = 47 kUSD
3 E = 910 MWh
ER = 1 200 tons
I = 12 kUSD
Hypothesis:
- Price of 1 carbon credit: 10 USD
Revenues estimation
Mini grid
Medium projects
5 000 households
Large projects
10 000 households
Revenues per year:

poor beneficiaries
Revenues per year:

richer beneficiaries
12 kUSD
70 kUSD
24 kUSD
100 kUSD
Disseminated
The calculations below consider two installed power per households which are relevant with the
electricity consumption levels of Andean households:
-
75w per household, corresponding to the poorest households with basic needs (lighting,
radio, cellphone)
300w per households, corresponding to richer households with fans, fridges, etc.
Medium projects
5 000 households
Large projects
10 000 households
Revenues per year:

75w/households
Revenues per year:

300w/households
5 kUSD
10 kUSD
20 kUSD
40 kUSD
280
V. Other
V.1
Peruvian bidding summary
(Convocatoria de la Primera Subasta RER para Suministro de Energa a reas No Conectadas a Red)
In September 2013, the Peruvian Energy Ministry published a solicitation of tender to electrify up to
410 000 households, 7530 health centers and 2100 schools through solar panels75 (minimum: 149
000 households, 2260 health centers and 630 schools). Up to 3 companies can win the tender; each
of them would be responsible for one region (Northern, Center or Southern Peru).
Supervisor of the tender: Osinergmin (the countrys supervisory agency for investments in energy
and mining), www.osinergmin.gob.pe
Period: 15 years
Definition of non-connected area according to the bidding: geographical areas or cluster of
geographical areas, with isolated population without electricity services nor close to the national
grid, and whose remoteness and dispersion make it non economically sustainable to integrate them
to the national grid on a short term and mid-term horizon. Benficiaries will be idientified directly by
the successful tender.
Summary of the bidding (own production):
State
(Osinergmin)
Check
installations
Investment
company
Trustor
$$$
Warranty fund
(FOSE, FISE, social
compensation for isolated
systems, users payment)
$$$
The investment and distribution

companies can be the same
company.
Distribution
company
(users
payment)
Installation, operation,
maintenance and
replacement
$$$
Users
Billing, payment
collection, loss of
energy, reconnection
Content of the offer by the investment company:

75
281
Annual remuneration for the investment service

Annual remuneration for the commercial service (if applicable)
Technical characteristics of the installations (solar panels power and battery capacity)
Number of installations
Area of installation (Peruvian territory has been divided into 3 regions for the bidding)
Commitment of the successful tender:

1. Installation, operation, maintenance and replacement of equipment for 15 years (through
the Investment Service Contract, signed between the Ministry and the Investing company).
After the period of 15 years, the installations are transferred to the distributing company.
2. Optional (the Investing company can ask the Ministry for the participation of a Distribution
Company): billing, payment collection, loss of energy service for non-payment, reconnection
of the energy service (through the Commercial Service Contract, signed between the
Ministry and the Investing company)
Chronogram (downloaded on May 9th, 201476)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Theme
Calling for Auction
16
Registry of participants
Sales of tender documents
Consultations and suggestions on the tender documents
Consultations and suggestions analysis
Publication of circular letter with answers to consultations and suggestions
Publication of the consolidated tender documents on the website
Publication of circular letter with the timetable for submission of envelopes
Presentation of envelopes and assessment of qualification envelopes
Assessment of qualification envelopes
Notification of bidders qualification and observations to participants
Presentation of remedies
Publication of minutes of bidders
Dispute of rejection of qualification
Resolution of disputes and publication of final minutes of bidders, if the case
may be
Public act of opening of offer envelopes and granting of contract
17
Publication of the results of the auction in the web portal of OSINERGMIN
18
Closing date and signature of the contracts by the Ministry
Deadline
September
12th,
2013
August 1st, 2014
August 1st, 2014
May 12th, 2014
May 27th, 2014
May 29th, 2014
June 3rd, 2014
June 9th, 2014
August 5th, 2014
August 15th, 2014
August 18st, 2014
August 20rd, 2014
August 22th, 2014
August 28st, 2014
September
14th,
2014
September
10th,
2014
September
12th,
2014
November 14th, 2014
76
See
282
Non-Connected areas to be considered:

Nonconnected
area
#
of #
of #
of Minimum quantity
regions provinces districts installations
of Expected quantity
Type 1
Northern area
Center area
Southern area
Total
9
8
7
24
83
60
51
194
703
665
464
1832
Type 2
j
T
Type 3
T
ype 1
Type 2
j
T
Type 3
S
Household
Health
centers
School
ousehold
Health
centers
School
55000
47000
47000
149000
1200
650
410
2260
280
175
175
630
157600
126600
125800
410000
4000
2160
1370
7530
930
585
585
2100
Map of the non-connected areas:
283
Technical characteristics of the installations:

Type 1: households
Current
Minimal power
Equipment
Other
Type
2:
Health
Centers
12V
with
direct 220V with singlecurrent
phase
alternating
current
85 Wp
425 Wp
Dry
battery
and Dry
battery
and
charge controller
charge controller
3 LEDs (max: 7w)
800 VA current-source
sine-wave
voltage
inverter
Type 3: Schools
220V with singlephase
alternating
current
850 Wp
Dry
battery
and
charge controller
1200 VA currentsource
sine-wave
voltage inverter
Controversy:
Some actors consider that the Guarantee of Faithful compliance (US$ 10 000 000) is too high
for national actor and is indeed a way to prevent them from applying.
In the database, the carbon market is mentioned only in one paragraph through Clean
Development Mechanisms.
284
V.2 Regional electrification maps: comparison of the number of rural households

lacking electricity access
Colombia
Ecuador
Peru
0 - 10 000 households
10 000 - 20 000 households
20 000 - 30 000 households
30 000 - 40 000 households
Bolivia
40 000 - 50 000 households

50 000 -70 000 households
70 000 - 90 000 households
>90 000 households
Source: own elaboration based on data from UPME (Colombia PIEC 2013-2016,), Conelec (Ecuador,
2012), Peruvian Ministry of Energy (2013 and 2012 Bolivian census.
285
V.3
List of interviews and conferences

I Peruvian actors
1.
July 5, 2013 Foreign Affairs Peruvian Ministry, Eduardo Calvo, Delegate UNFCCC and adviser
Ministry; Lima Peru
2.
July 15, 2013 SNV, Fernando Acosta, General Advisor on RE in South America; Lima Peru
3.
July 16, 2013 European Union, Tatiana Garcia, Thematical programs, Lima Peru
4.
July 18, 2013 European Union, Victor Velarde, Euro-Solar manager, Phone Call
5.
July 16, 2013 GIZ, Angel Verastegui, National adviser on RE; Lima Peru
6.
July 16, 2013 SENSICO, Louis Miguel Imaa Ramirez, Executive President and Ricardo Oberti
Izquierdo; Lima Peru
7.
July 17, 2013 Soluciones prcticas, Daniel Rodriguez, program manager and Jean
Velasquez; Lima Peru
8.
July 17, 2013 Observatorio del Cambio Climtico y CEPES, Beatriz Salazar, Project manager;
Lima Peru
9.
July 17, 2013 ITACAB, Carlos Mora, Jos Sanchez Narvaez and UNI, Victor Garcia Carhuayo,
Lima Peru
10.
July 18, 2013 Schneider Electric, Guido di Toto, CEO; Lima Peru
11.
August 1st, 2013 CER-UNI, Rafael Espinoza, director; Lima Peru
12.
August 13th, 2013 Pedro Gamio, renewable energies specialist; Lima Peru
13.
September 2nd, 2013 Solutions Prcticas, Rafael Escobar, Jean Velasquez, energy programs
managers; Lima Peru
14.
September 5th, 2013 - MINEM, David Orosco Zumarn, adviser or Energy Ministry - Lima,
Peru, FONAM event
15.
September 5th, 2013 - MINAM, Regina Ortega Gordillo - Lima, Peru, FONAM event
16.
September 5th, 2013 - OLADE, Gabriel Salazar - Lima, Peru, FONAM event
17.
September 5th, 2013 - ENERCLIM, Juan Coronado - Lima, Peru, FONAM event
18.
September 5th, 2013 - IICA, Oliver Marcelo - Lima, Peru, FONAM event
19.
September 5th, 2013 - MINEM, Edgar Escobedo - Lima, Peru, FONAM event
20.
September 5th, 2013 - OSINERGMIN, Marco Fernandez Baca - Lima, Peru, FONAM event
286
21.
September 5th, 2013 - IADB, Carlos Echavarra - Lima, Peru, FONAM event
22.
September 6th, 2013 - Expert, Jan Janssen - Lima, Peru, FONAM event
23.
September 6th, 2013 - PNUD, Jorge Alvarez- Lima, Peru, FONAM event
24.
September 6th, 2013 - FONAM, Julia Justo - Lima, Peru, FONAM event
25.
September 6th, 2013 ECO Capital, Javier Pen, President - Lima, Peru, FONAM event
26.
September 6th, 2013 - COFIDE, Juan Carlos More - Lima, Peru, FONAM event
27.
September 6th, 2013 Energy and Environment Institute, Juan Jos Miln Guzman - Lima,
Peru, FONAM event
28.
September 6th, 2013 CIDELSA, Edmundo Rodriguez, manager - Lima, Peru, FONAM event
29.
September 9th, 2013 COSUDE, Jean-Gabriel Duss, Director of Cooperation - Lima, Peru
30.
September 26th, 2013 IICA, Oliver Marcelo, regional technical director, Marietta Shimizu,
environmental expert, Michael Allen, chief technical advisor - Lima, Peru
31.
September 27th, 2013 Grupo PUCP, Miguel Hadzic - Lima, Peru
32.
September 30th, 2013 PNUD, Jorge Alvarez, program official - Lima, Peru
33.
September 30th, 2013 Interamerican State Organization (OEI), Luis Vargas, Luces para
Aprender coordinator - Lima, Peru
34.
October 1st, 2013 MINEM, Miguel Ramos, RE assistant - Lima, Peru
35.
October 1st, 2013 IADB, Carlos Echevarra, Carbon and energy specialist - Lima, Peru
36.
October 2nd, 2013 - MINEM, David Orosco Zumarn, adviser of Energy Ministry - Lima, Peru
37.
October 4th, 2013 - AFD, Alain Humen, AFD correspondent for Peru - Lima, Peru
38.
November 12th, 2013 Light Up The World (LUTW), Ada Yee, director of the regional office Lima, Peru
39.
November 14th, 2013 XX Simposio peruano de energa solar - Tacna, Peru
40.
Peru
November 14th, 2013 Bright Sun Power Peru, Romulo Bisetti, general manager - Tacna,
41.
December 3rd, 2013 Grassroots Business Fund, Lara Viada, business advisory officer,
Miguel Tamayo, investment officer Lima, Peru
42.
Peru
December 9rd, 2013 Entelin and Grupo Ecos, Antonio Arauz, General Manager Lima,
287
43.
December 9th, 2013 Bright Sun Power Peru, Romulo Bisetti, general manager - Lima, Peru
44.
December 10th, 2013 Fondesurco, Roberto Rojas, Jonathan Nunez, technical assessor of
energy Skype interview
45.
December 11th, 2013 SNV, Fernando Acosta, General Advisor on RE in South America
Skype interview
46.
December 12th, 2013 GIZ, Angel Verastegui, National adviser on RE Lima, Peru
47.
December 13th, 2013 PowerMundo, Paul Winkel, General Manager Lima, Peru
48.
Peru
December 13th, 2013 JICA (Japonese Cooperation), Jesus Gibu, general manager Lima,
II Ecuadorian actors
1.
July 26, 2013 European Union delegation in Ecuador, Pedro Ponce, EuroSolar coordinator;
Quito - Ecuador
2
July 29, 2013 Inter-American Development Bank IADB), Paula Auerbach, Fonim Specialist;
Quito Ecuador
3
July 29, 2013 FEDETA, Guillermo Verdesoto, Director; Quito Ecuador
4
July 29, 2013 CARE-SNV, Fernando Unda: CARE country representative, Carlos Mayanquer:
financial manager, Jamie Jenkins: SNV country representative; Quito Ecuador
5
July 29, 2013 IICA, Renato Oa, national coordinator of AEA y Julio Escobar, biotechnology
specialist; Quito Ecuador
6
July 30, 2013 Lorena Falconi, adviser on environment issues, she worked previously as the
Climate Change mitigation Director in the Environment Ministry; Quito Ecuador
7
July 30, 2013- MEER, Luis Manzano, National Director of Ecuadorian Energy Ministry, Patricio
Orellana, RE Project manager, Fabian Toscano, EuroSolar responsible; Quito Ecuador
8
July 31, 2013, Engineers without borders (ISF), Albert Perez, Project technician; Quito
Ecuador
9
July 31, 2013, Environment Ministry (MAE), Eduardo Noboa, sub secretary of climate change,
Emilio Cobo, Climate Change mitigation and REDD, Alexandra Buri, sub secretary climate change;
Quito Ecuador
10 -
November 19-23, 2013 FEDETA, Guillermo Verdesoto, Director; Quito Ecuador
11 November 22, 2013 CNEL Esmeralda, Eber Sosa, Plannification Director; Esmeraldas
Ecuador (with Guillermo Verdesoto)
288
12 -
November 25, 2013 IADB, Paula Auerbach, Fonim Specialist; Quito Ecuador
13 November 25, 2013 UNDP, Ana Mara Nuez, technical expert on climate change and
energy; Quito Ecuador
14November 26, 2013- MEER, Luis Manzano, National Director of Ecuadorian Energy Ministry;
Quito Ecuador
15-
November 28, 2013- MEER, Carlos Dvila; Quito Ecuador
III. Bolivian actors

1.
August 20, 2013 Center to Promote Sustainable Technologies (CPTS), Cecilia Espinosa,
Energy Efficiency La Paz, Bolivia
2.
August 20, 2013 ECOTEC, Alvaro Montao, funder La Paz, Bolivia
3.
August 20, 2013 Soluciones Prcticas, Carlos Reza La Paz, Bolivia
4.
August 20, 2013 SNV, Horacio Barrancos, inclusive business adviser La Paz, Bolivia
5.
August 21, 2013 European Union, Roderic Mckenzie, EuroSolar responsible La Paz, Bolivia
6.
August 21, 2013 GIZ, Jaime Sologuren, Carlos Alba, renewable energies responsible;
Guillermo Velez, lighting responsible La Paz, Bolivia
7.
August 21, 2013 Live with Dignity Electrification program, Energy Ministry, Jacques
Alcoba, RE responsible La Paz, Bolivia
8.
August 22, 2013 IICA, Bernardo Mendizabal, national technical coordinator, Monica Pardo
La Paz, Bolivia
9.
August 22, 2013 Helvetas, Javier Gonzales, climate change technical adviser La Paz,
Bolivia
10.
August 22, 2013 Energtica, Miguel Rodriguez, director La Paz, Bolivia
11.
August 23, 2013 Energtica, Edgar Terrazas Cochabamba, Bolivia
12.
August 23, 2013 CINER, Alba Gamarra, director, Norbert Hackenberg, wind turbine
specialist Cochabamba, Bolivia
13.
August 24, 2013 PHOCOS, Ronald Cavero, general manager Cochabamba, Bolivia
14.
August 26, 2013 World Bank, Wendy Guerran, energy programs La Paz, Bolivia
15.
August 26, 2013 Energy Ministry (PEVD), Marcelo Lolber and Juan Cauna, World Bank
energy programs La Paz, Bolivia
289
16.
August 26, 2013 Inter-American Development Bank, Camille Ponce, Arturo Alarcn, energy
specialist La Paz, Bolivia
17.
October 22, 2013 SIE SA, Ronald Borda Gonzales, technical assistant Cochabamba, Bolivia
18.
October 24, 2013 Phocos, Ronald Cavero, director Cochabamba, Bolivia
19.
October 24, 2013 Energtica, Miguel Fernandez, director Cochabamba, Bolivia
20.
October 28, 2013 Foreign Affairs Ministry Mother Earth Unit, Alexandra Moreira,
director, Fernando Cisneros La Paz, Bolivia
21.
October 28, 2013 French Economical mission, Carla Llosa, responsable of the Economical
Mission Antenna La Paz, Bolivia
22.
October 28, 2013 GIZ, Guillermo Velez, lighting responsible La Paz, Bolivia
23.
October 28, 2013 Energy Ministry, Marcelo Lorberg, GPOBA responsible La Paz, Bolivia
24.
October 28, 2013 Energy Ministry, Juan Manuel Gonzales, Director of Alternative Energy
La Paz, Bolivia
IV. Chilean actors

1.
September 11, 2013 - BMG, Carlos Bonifetti; Skype call
2.
September 12, 2013 IADB, Carolina Carrasco, FOMIN specialist, Antonio Levy, RE consultant
Santiago, Chile
3.
September 12, 2013 GIZ and Energy Ministry, Stephan Franz, GIZ RE consultant and Jorge
Avalos Santiago, Chile
4.
September 12, 2013 IICA, Alejandra Sarquis, Representative of IICA Chile, Andrea Garca,
biotechnology specialist, Pablo Viguera, sustainable and rural development specialist Santiago,
Chile
5.
September 13, 2013 Renewable Energies Center (CER), Gerardo Canales, project manager
responsible, Pablo Tello, project manager Santiago, Chile
6.
September 13, 2013 ACERA, Mario Acevedo, study engineer Santiago, Chile
7.
September 16, 2013 UNAF (National Union of Agricultural Families), Patricio Nayan
Santiago, Chile
8.
September 16, 2013 Desafio Levantemos Chile, Cristin ORyan, project manager, Pablo
Schuster, Executive Director Santiago, Chile
290
9.
November 28, 2013 Chilean Energy Ministry, Jorge Avalos Sntis Cartagena, Colombia
(IPSE event)
V. Colombian actors
1.
September 17, 2013 French Development Agency, Carl Bernadac, project manager,
Stphane Ledoux, mission manager, Aurlie Charton Bogot, Colombia
2.
September 17 and 18, 2013 Renewable Energies conference, Lylian Rodriguez (Fundacin
UTA, Tosol), Roberto Rodriguez (La Cosmopolitana) Villavicencio, Colombia
3.
September 19, 2013 Inter-American Development Bank, Jos Luis Alba Perilla Bogot,
Colombia
4.
September 19, 2013 IICA, Jorge Pinto, country representative Bogot, Colombia
5.
September 20, 2013 Fundacin Natura, Javier Aristizabal, Juan David Morales, Suzana Velez
Bogot, Colombia
6.
September 20, 2013 Ministry of Energy Unity of planification (UPME), Olga Ramirez,
Henry Zapata, Hector Herrera, Jorge Cuenca Bogot, Colombia
7.
September 20, 2013 B2Green, Camilo Jimenez, Administrative Director, John Ostos
Bogot, Colombia
8.
September 23, 2013 European Union, Johny Ariza Bogot, Colombia
10.
September 23, 2013 Ministry of Energy, IPSE, Adriana Vaca, Miriam Pantoja, Carlos Orozco
y Jaime Martinez Bogot, Colombia
11.
September 23, 2013 USAID and Tetratech, Colombian Clean Energy Project, Jesus Gomez,
Catalina Alvarez Bogot, Colombia
12.
November 28, 2013 OEI (Iboamerican State Organization) Pedro Jaime Pineda Parra,
National Coordinator of Lights to Learn- Cartagena, Colombia (IPSE event)
13.
November 28, 2013 Ministry of Energy, Amylkar Acosta Medina - Cartagena, Colombia
(IPSE event)
14.
December 12, 2013 Hybrytec, Andrea Montoya, Business developer Skype
15.
February 6, 2013 Aprotec, Mauricio Gnecco - Skype
291
IV. Regional actors

15.
July 12, 2013 - Comunidad Andina, Maria Teresa Becerra, environmental coordinator Lima,
phone call
16.
July 26, 2013 OLADE, Byron Chilinquinga, head of projects section; Quito - Ecuador
17.
July 26, 2013 OLADE, Gabriel Salazar, energy coordinator; Quito - Ecuador
18.
August 2, 2013 HIVOS, Harrie Oppenoorth, Senior Advisor Energy and Climate Change,
Mario Valori, Energy projects official; Phone call
19.
September 12, 2013 ECLAC, Andres Schuschny, Natural resources and infrastructures, Jean
Acquettla, Economic Affairs Officer - natural resources and energy unit ; Santiago - Chile
20.
October 16, 2013 OEI, Angelica Paez, responsible of the light to Learn program and Leire
Iriarte, sustainability adviser - Skype
292
V.4
Interview guidelines
V.4.1
Interview guidelines for institutional actors
This guide is only indicative: each interview takes place in a unique way. Before each interview,
relevant specific questions, as well as a list of objectives for that interview, are prepared.
In addition, there are always unanticipated questions according to the interviewee's answers: this
pattern of interview is not strictly followed very often.
Introduction to the study
Microsol is a company that helps to improve the sustainability of social projects, mainly within the
carbon market. In two years, we have helped 4 partners to get more than 2 million euros for
improved cook stoves projects in Peru. The projects benefited 450 000 people. Now, we have 20
partners in Latin America, to improve the lives of 2 million people.
Since June 2013, we are conducting a feasibility study for Electrification with Renewable energy and
Lighting in the Andean region and their social impacts, funded by the Rexel Foundation. The Rexel
Foundation's strategic goal is to promote the universal access to energy efficiency, via three areas of
focus: develop knowledge and awareness of energy efficiency, support research programs and
educational projects on this issue and support the development projects in favor of the poorest
populations.
In this study, the goal of Rexel Foundation and Microsol is to support partners who work with
renewable energy and lighting, in the following countries: Colombia, Ecuador, Peru, Bolivia, and
Chile. The projects can come from NGOs, regional and national governments, companies, etc.
It should be noted that, as Microsol's motto says "Carbon Credits to reduce poverty", we consider
projects with not only environmental but social impact. It is for this reason that we focus on projects
addressing the issues of the poorest at a community, family level.
Entrance into the carbon market (optional)
Carbon markets allow financial support for projects that reduce the emission of greenhouse gas.
For example, a French company, which performs polluting activities and cannot reduce its emissions
because it is too expensive, can offset its carbon footprint by funding a clean project in another
country, such as electrification in a community through solar panels.
There are two main mechanisms of the carbon market: the compliance market, linked to the Kyoto
protocol, and the voluntary market. Microsol works primarily with the voluntary market, for two
main reasons: first, because the market entrance process is shorter (about 2 years) and second,
293
because you can generate more funds in the voluntary market than in the compliance market due to
the current situation of low prices in the latest.
Within these markets, you can work in two ways: at the project or at the program level. A program
gathers several projects and generates economies of scale. In fact, entering the carbon market is very
expensive, because it involves a process of monitoring and certification performed by independent
auditors of the United Nations. With a program, you can reduce costs through a cost sharing
between each project. This is why Microsol works at the program level, bringing together different
organizations in the same program.
First questions about the projects that are relevant for the study
What are your organization's projects in the areas of renewable energy and lighting?
How do these projects work?
Were there any problems during implementation and after the project?
What do people use electricity and lighting for?
Is there any interest to enter the carbon market?
Explanation about the basic criteria for eligibility in the carbon market
There are two very important aspects to check, in a first phase, whether it is worth considering the
carbon market within your project:
1. Preliminary consideration: You should verify that, when making the decision to implement
the project, the possibility of benefiting from the resources generated through the carbon
market has been, at least, considered. This preliminary consideration about carbon is part of
the requirements to access the carbon market and leave this option open. The evidence of
the preliminary consideration can be emails, letter of intent, project profile. The carbon
market can work with completed or under implementation projects, provided that there is
preliminary consideration.
2. Size of the project: as mentioned above, there are many costs associated with the carbon
market entrance. Microsol covers most of these costs. However, if the project has few
facilities, it will generate little carbon savings (and therefore, few carbon credits, since a
carbon credit is equal to one ton of carbon saved) and therefore little revenue. To give you
an idea, five 200-watt solar panels generate approximately a carbon credit per year, sold for
an average of $ 10. Then a project of 500 solar panels will generate 100 carbon credits, an
average of $ 1,000.
294
Preliminary calculations of profitability
Questions are asked to complete the eligibility questionnaire (attached) and then, make a simulation
of calculations. Great emphasis is placed on the fact that the calculations are preliminary, they are
only made to give an idea.
General questions about the efficiency of the technologies and beneficiaries
What do you think about technologies such as solar panels, wind turbines, biogas digesters,
micro hydro, lighting solutions?
In your opinion, do they work well from a technical perspective?
In your opinion, do they work well from a social perspective?
What are the organizations that finance renewable energies and lighting projects?
General questions about other projects
Do you know other projects at national level related to these technologies? In the Andean
region?
Could you get us in touch with people familiarized with the subject?
Meeting closure
The documents to be sent and / or received are recalled and a summary of the important points of
the meeting is made.
295
V.4.2
Interview guidelines for fields visits
Introduction
I am not here to assess the projects and the way you use it. I am from a French company willing to
develop and support projects. To do so, my company needs to understand the challenges the
projects are facing, and the solutions that do exist, in order to share knowledge.
General information
I.
To the accompanying person:
First name and last name:

Organization:
Responsible for:
Starting date in the organization:
Email:
Phone number:
II.
Concerning the Project:
Name of the project:

Implementation structure:
Starting and ending dates:
Budget:
Funders:
Technologies (type, power, mini-grid, etc.):
III.
Concerning the community:
Name of the community:

Access to the community (road, boat, etc.):
Main activities of the community:
Number of households:
296
Number of communitys inhabitants:

House dispersion:
Presence of community buildings such as schools, health centers, community centers, etc.:
Community leadership and social organization:
Questions for end users
(If necessary: short introduction in quechua to build a more trustful relationship)

Allillanchu mamay/taytay? Nuqaqa sutiyqa Emilie, Franciamanta kani. Pisillatam runasimita yachani,
hinaspa espaolsimipi tarpusqayki. Allinchu?
I.
General data:
First name and last name:

Age:
Gender:
Number of children:
Number of people living in the household:
Main activity:
Ethnicity/mother tongue:
Date of arrival in the community:
Dream:
II.
Energy consumption of the family and the community:
Before getting this installation, how much do you pay to get lighting/electricity? How did you light
your house? With the new system, how much do you pay per month?
Input availability (gas, kerosene, etc.): are some people in the community using other energy inputs?
Where is it possible to buy such inputs?
III.
Technology uses:
When did you get this installation?
297
What was the process to get the installation? (for example: did you go to information meetings? Did
you have to sign a contract?)
Did you pay something to get the installation? Or did you take part in the implementation?
How many hours a day do you use this installation?
What for?
Is it complicated to use it? Did someone explain to you how to use it? How was the training?
Are the other families with this technology using it? What for? If they are not using their devices,
what is the main reason in you opinion?
Did you have problems with your installation? Did it stop working at what point? For how long? Do
you know what created the problem?
What did you do to fix the problem? Did you call someone, tried to fix it by yourself, or just stopped
using it?
Do you thing the families who do not have this installation would like to get it?
Questions for the projects technician

I.
Projects implementation:
Why did you choose to implement the Project in this community in particular? What were your
criteria to choose this community?
How did you get into the community? (meetings with community leaders, with the community, etc.)
How much did the installations cost?
Were there some technical issues for the Project implementation?
Were there some social issues for the Project implementation?
II.
Training:
Did you have a training process for the community/end users?

If yes, how many times were people train? For how long? What was the training about?
In your personal opinion, was the training sufficient or would people need additional trainings?
In addition to final users, did you train as well technicians? What was this capacitation about?
III.
Sustainability
298
Were there many technical problems with the systems? What is the most common problem? In your
opinion, why?
What do people do in case of technical failures?
How many times per year do you visit the community and check the installations? If you do not, what
is the reason?
Is there a recycling process for the installations?
Did final users pay something for the installations?
299

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Microsol and Rexel Foundation

Study of the potential to

Electricity and lighting context in the Andean countries ....................................................................32

Electricity and lighting needs ......................................................................................................33

Traditional solutions for electricity and lighting access ..........................................................33

I.1.1.1 Getting to know the area to understand people needs ......................................................33

Efficient electricity and lighting solutions ...........................................................................................45

Upsides of efficient decentralized solutions ...............................................................................46

Grid solutions VS decentralized solutions ...........................................................................46

The relevance of decentralized solutions in Andean countries ..........................................47

Renewable energy and lighting solutions ...................................................................................50

Solar energy for electricity generation ...............................................................................50

Wind turbines .....................................................................................................................51

Hydro energy ......................................................................................................................51

Biodigestion for electricity generation ...............................................................................52

Lighting solutions ................................................................................................................54

The distribution model .......................................................................................................55

Energy Hubs ....................................................................................................................55

Home Systems ................................................................................................................56

Cost comparison between mini-grid and home systems ................................................57

Conclusions on technological options.................................................................................58

Creating a successful access-to-energy project ..........................................................................61

Towards ownership: design the project with stakeholders ................................................62

Identification of the needs .............................................................................................62

Stakeholders involvement: consultation and implication ...............................................63

Towards ownership: management model ..........................................................................64

Towards ownership: project implementation ....................................................................66

Participation of the users ................................................................................................66

Participation of the stakeholders ....................................................................................67

Towards ownership: project operation ..............................................................................68

Training of users .............................................................................................................68

Training of local technicians ...........................................................................................69

Toward ownership: long-term sustainability ......................................................................70

II.3.5.1 Long-term follow-up visits ..................................................................................................70

Conclusions on the Part II ...........................................................................................................73

General presentation of carbon markets....................................................................................75

Compliance carbon market VS Voluntary carbon market ...................................................75

Projects versus programs of activities ................................................................................76

Carbon certification process ...............................................................................................76

Assessing revenues and costs: carbon methodologies .......................................................77

Emission reductions and carbon credits .............................................................................78

Impacts of carbon markets on projects sustainability ........................................................79

Methodologies for energy and lighting access ...........................................................................79

General criteria ...................................................................................................................82

Profitability on carbon markets ..........................................................................................82

IV.1 Screening of projects in each country .............................................................................................85

Rural electricity and lighting context in Colombia ..............................................................85

Rural electricity and lighting context in Ecuador ................................................................85

Rural electricity and lighting context in Peru ......................................................................86

Rural electricity and lighting context in Bolivia ...................................................................87

Rural electricity and lighting context in Chile .....................................................................87

Electricity and lighting projects...........................................................................................88

Eligible projects in each country: overview ................................................................................93

Eligible projects in each country: detail of main opportunities ..................................................95

Peruvian bidding for rural electrification through solar panels ..........................................95

Diffusion of solar lanterns in Bolivia ...................................................................................96

Funding opportunity for a carbon scheme focused on access-to-energy issues.........................98