Community Based Development and Productive Uses of Power

1. Community Based Development and Productive Uses of Power Empower Consultants Limited Ann McLean amclean@mpwr.co.nz Tony Woods twoods@mpwr.co.nz

2. Who are we? • Small development consultancy, specialty community infrastructure and livelihoods • Half engineers, half social scientists • Development projects in China, India, Indonesia, Philippines, Taiwan, Vietnam, and in 12 other Pacific and Asian countries.

3. Content: • Experience • Lessons learned • Best practices

4. Context: APEC Regional Energy 200 m. in the region lack access to commercial energy. Between 1990 and 2020: • Population growth from 2.5 to 3 billion • Annual average economic growth rate predicted to be 3.5% • Energy demand growth of 2.5% per annum • The low cost oil age is finite • The waste absorptive capacity of the planet is already exceeded Clean energy is not an option, but an imperative

5. Energy as an enabling input Direct: • Industry • Domestic use • Commercial applications Impacts are relatively easy to measure and value

6. Power as an enabling input Indirect: • Environmental • Health • Education • Communications • Information and entertainment • Security More difficult to value, and often externalised

7. Vietnam - private electrification

8. Vietnam

9. Unexpected bonuses - Vietnam

10. Outcomes - Vietnam

11. Kiribati

12. Kiribati – health centre

13. Nepal – cottage hospital

14. Nepal – communications

15. Communications at the top of the world

16. Maximising utilisation

17. Outcomes, five years later • Where on average, a household has 1.7 sources of income, in Namche Bazaar, it has 3.6 sources of livelihood • Household incomes are 5.7 times the national average • The High School’s graduates are amongst the top in the country • The Sherpa have used electricity for culture preservation, and made a CD of their songs

18. Nepal – World’s highest micro-hydro?

19. Hydrocarbon and biomass displacement

20. Nepal – safe water, environmental protection and income generation

21. Afghanistan – water treatment

22. WMD in Pakistan, Durgai Village

23. Pakistan – health post

24. Productive uses - Durgai • Electricity has enabled participation in numerous government programmes (education, livestock) • Both schools are electrified at community expense; the middle school is to be upgraded • Health post is electrified; Community bought a vaccine refrigerator and a safe drinking water treatment system • A second-hand computer has been set up in the power house; three more willl be used to introduce computer training • CBO has set up a vehicle repair service, providing employment and saving expense

25. Planned productive uses - Durgai • Water pumping and household water supply is funded and under construction • The community has applied for a VHF telephone and will set up a PCO • Vehicle repair services will be enhanced when a trainee has completed a welding course

26. Impacts of project-community level • Employment created for 3-4 people • Cost saving for whole valley population of 1500: • Travel for medical treatment • Travel for vehicle repairs • Cost of high school education in Quetta • Cost of travel for NICs • Improved communications at low cost Empower Consultants Ltd

28. Lessons learned - what • Power availability matters – 24/7 • Power quality matters – reliable, 3-phase if large productive loads are present or foreseeable, and use power meters! • Equipment quality is paramount in remote areas • Support is essential • Technical • Manangement

29. Lessons learned - what • Mature technologies are available • Rural people need a lot of power • They have surprising ability and willingness to pay for service • Assisting them to integrate other sectoral programmes into electrification yields dividends – the whole is greater than the sum of its parts

30. How? Aim: • Sustainable economic development Roadlocks: • Incoherent policy and regulatory frameworks • Cost • Access to finance • Unattractive investment climates • Weak technical and managerial capacity • Lack of practical support frameworks • Distance from sources of expertise • Governance issues

31. Best Practice - how • Policy and institutional strengthening • Demand-driven planning - needs and resources assessments • Collaborative identification of sustainable natural resource development • Maximise power use for economic, social and environmental benefit • Programmes, not projects • Monitor outcomes rather than outputs

32. PROBLEM: Financial cost falls upon the producer Economic benefit and benefits of “externalities” accrues to society as a whole We demand most of the poorest and remotest SOLUTION: Internalise externalities; trade carbon credits Provide service to remote communities as for urban communities Develop better metrics Recognise the need for long term consultation and support Valuing benefits

33. Management model Central Government Agency Local Government Agency Private Sector Service Academia

34. APEC at Policy Level There are not many new problems, so why do we keep making the same old mistakes? APEC can: • Foster information and experience sharing between member economy policy makers to de-politicise: • Policy and institutional frameworks • Investment and financing mechanisms

35. APEC in Sustainable Village Development can: • Host workshops to bring together member economy actors in: • Programme design • Methodology and best practice • Emerging technologies - use the CPI! • Village installation operation and management • Impact monitoring and evaluation • Implement integrated SVD programmes with emphasis on private sector development