Empowering Rural Electrification With Solar Funding

Rural community in developing countries have noof seeds annually in the begining and as it grows it
access to modern forms of energy. The worldcan produce up to 6kgs. On a land of 1acre you
bank funding through the Governments andcan plant 1000 jatropha trees spaces at 2mts
through local village banks forms a very goodinterval.
network of reaching the people who need theThe global bio-diesel market is estimated to reach
loans to purchase renewable energy systems.37 billion gallons by 2016, growing at an average
Despite advancement in technology and reductionannual rate of 42%.
of the cost of solar systems cost per watt peak,Lankveld said developing bio-fuels offers the most
the rural communitys disposable income would notimmediate and viable response to emerging
let them purchase these systems. On the othereconomies in the Tropics to produce and supply
hand renewable energy vending companies did notthe global energy market and reduce carbon
have capacity to loan out systems to theirdioxide emissions as part of the battle against
customers because of the limited cash flowclimate change.
broblems these companies face. These companiesOur company has set up a demonstration project
also do not have loan recovery mechanism inon the shores of Lake Victoria. It will supply
place to ensure proper payment for the installedrenewable energy products and process biofuel.
systems. So the result was that the ruralThe company will not be relying on new
electrification was not possible.plantations to source its raw material. Instead it
Now the people of the rural community can go towill start by buying up Jatropha nuts already
their local banks or village micro credit banks,available from the existing plants This year It
apply for a solar loan and work out paymentintends to collect about 10,000 Kgs of the seed
plans suitable to their individual incomes, which canfrom vanilla farmers in the districts of Mukono,
be easily verified by the staffs of theKayunga, Jinja, Iganga, Kamuli and Bugiri, from
microfinance institutions. Then the microfinancewhich it expect to extract 3,300 litters of oil... The
institution will sign an aggrement with thecompany will also plant about 40 hectares (about
Governments rural electrification agency (REA)60,000 trees) of jatropha at a new land farm we
and the vending company. The microfinanceaquired.
institution will place an order with the vendingThe project will also be giving farmers high quality
company for the total number of systemsjatropha seeds to increase crop output for the
required by its members. And the vendingfuture. Rather than setting up large plantations,
company will go ahead to supply and install solarthe venture is promoting Jatropha as a means of
systems for the identified customers.diversification for farmers, encouraging its
Roles of the 3 partiesintegration alongside millet, sorghum or maize and
1. REA, to ensure quality of the system suppliedreviving those who had abandoned it because of
by the vendor and to do an energy audit on eachthe disappointments in the vanilla market and
system and to give the government subsday onusing it as fencing material for their farms.
successfull compleetion of the job to the vendingWe believe in small-scale, decentralized bio-diesel
company.processing plants, where there is local production
2. SACCO, to identify the end user customer whoof jatropha nuts to minimize transport. We also
needs a solar system, acertain their capacity tobelieve that selling of plant oil stoves will
pay the loan, extend the loan and ensure theyencourage the local farmers to grow jatropha and
receive a quality solar system. To idendify suitableother oil crops primarily as a source of fuel for
solar vending companies.their kitchen cooking and later as a commercial
3. Solar vending company, to ensure quality supplycash crop venture. we will also sell to them small
of solar system, install it and see it is in properoil hand mills so that they can extract their own oil
working condition and to recover payment fromfor domestic use.
the saccos and subsdy from the governmet afterThe first test runs of Uganda electronics and
successfull installation.computer industry ltd, small-scale off grid
The rural community will be serviced with therenewable energy and biodiesel plants will take
solar home systems (SHS). But each of theplace in November 2010. However starting
SACCO can have one off grid renewable VillageOctober we are running sensitization seminars in 3
power supply system, which can supply the wholedistricts, collecting seeds, selling stoves and
village.processing oil.
The following advantages can be got from such aThe UN special reporter on the right to food
system.recently recommended jatropha as a bio-fuels
1. Community projects like water pumping,crop for developing countries. Jatropha was
community hall, tele-center, health clinics, Internetrecommended because of its high inedible oil
café etc.content, gestation period and ability to grow on
2. Surplus power is sold to the national grid if thedegraded soils.
renewable energy system is near the grid.There is need for developing countries to invest in
3. Better security for the power supplybio-fuels production because with climate change,
4. Small factory and processing equipment for thethe world's energy polices is bound to change for
benefit of the village and as a money generationthe worst.
activity.Uganda can excel in bio- diesel production since
5. Bio fuel generator, bio fuel cooking stove.the majority of the people derive their incomes
Lantern and making of soap from glycerol willfrom agriculture. Jatropha offers enormous
serve as a stimulus for people to grow Jatrophapotential to alleviate poverty and improve health.
as a cash bio fuel crop.A farmer can earn up to $250 (sh427, 500)
Bio-fuel production - Using Jatropha The Nextannually from a 1km hedge of jatropha.
Generation sustainable fuel.Long Term Potential
What is bio-Diesel?Speaking about the long-term potential of
AS the volatile Middle East continues to affectbio-diesel, the realities of the bio-diesel markets, a
global oil supply, countries like Uganda are chockingsuccessful bio-diesel business plan begins with an
on heavy oil import costs. Crude fossil oil priceseffective feedstock strategy from which process
touched $100 this combines with the erratic anddesign flows. To make bio-diesel a long term
increasing dollar rate (at last month high dollar ratebusiness opportunity attention must be paid to
this translates to Sh230, 000) per barrel this yearthe critical issue of availability of right feedstock at
and are expected to reach the $150 (Sh345, 000)right cost.
mark in two years.Jatropha will be a vast source of bio-fuel and a
The ever-increasing and erratic oil prices and akey to reducing our dependence on fossil fuel.
volatile dollar are driving many countries to searchJatropha can bring significant environment benefits.
for alternatives of achieving energy independence.It can replace jet fuel and fossil fuel from
This has intensified research and boostedpetroleum companies without interfering with food
development of bio fuels as the most reliablecrops or leading to clearing of forests. The good
energy alternative.thing about jatropha is that you are producing a
Production of bio-diesel from Jatropha Carcus,tree shrub that lives for a long time and does its
commonly known as 'Ekiloowa, has manyjob. Producing oil while it also sequesters lots of
advantages. Ekiloowa is well known in Uganda andcarbon from the atmosphere. Jatropha is a
is commonly used as a support for vanilla vinesmultipurpose crop to alleviate soil degradation,
and sometimes as a hedge.desertification and deforestation, which can be
Jatropha, a drought- resistant perennial crop withused for bio-energy to replace diesel, cooking fuel
an over 40 - year life span, is a member of thewood and for soap production and climatic
Europhobiaceace family. Its seeds can yield aboutprotection and hence deserves special attention.
37% non-edible oil.Jatropha can help increase rural incomes,
One kilogram of the seeds produces 200ml of oil.self-sustainability and alleviate poverty.
Every tree can bear one-and-a half kilogrammes