Who Profits from Energy Projects? Scaling Sustainable Economics of Energy
Jyrki Luukkanen
Contents
• Energy for whom• Energy by whom• Scaling of energy projects
Energy for whom
• Energy for poor– Basic needs
• Food – cooking• Water pumping
– Education• Light for evenings• TV, radio, VHS, DVD
– Communication• Mobile phones
Energy for whom
• Energy for business– Income generating
activities– Employment
generation– Energy as a driver
of economy– Trickle down?
Energy by whom
• Household supply– Who decides the system– World Bank?– Other donors?– How it fits the present
market system– Would the same
investment lead to better results in some other target area
Energy by whom
• Small enterprises and Cooperatives– Energy supply should become normal
business, which does not need aid money
– Economic sustainability crucial– Is the interest rate too
high to promote ’normal’ business
Scaling energy supply
• What is the optimal level of energy supply– Household level– Village level– Several villages– Larger scale
Scaling energy supply
Decentralized systems• Small is not always beautiful• Scale of optimal energy system depends on
circumstances• Bottom-up optimisation
does not lead to larger scale optimisation
• In income generating activities reliable supply of energy may be first priority
Scaling energy systems• Sometimes large scale
system may be optimal• Sometimes smaller scale
system may be optimal
Scaling energy systems• Technology may
determine the optimal scale of the system– Biomass based electricity
production does not function in very small scale – ten villages could be better than one village
• Availability of skilled operators and workers, spare parts, economics of scale, reliability of supply
– Photo Voltage is not good for rice mill but ok for TV
– New technology development may change situation
Scaling requires integrated planning
• Integrating energy planning with other sectoral planning– Industrial planning– Transport planning– Forestry planning– Agricultural planning– Environmental planning– Education planning– Poverty reduction
• Prioritizing– Strategy building– Short and long term
perspective
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