Rural Electrification Projects Overview

Introduction

• Universal access to energy is vital for sustainable development, especially in rural areas.
• Nearly 760 million people globally, mainly in rural regions, lack access to electricity.
• This presentation examines three rural electrification projects by ACCIONA, a global non-profit.
• These projects focus on management models, sustainability, and innovative governance, technology, and business strategies for underserved populations.

Key Management Model Components

• Governance Model: Defines the roles, relationships, and responsibilities of stakeholders (owners, operators, financiers, regulators, local governments, communities).
• Technological Model: Determines the energy generation technology (renewable or non-renewable), system type (standalone or grid-connected), and sustainability.
• Business Model: Explains how energy systems are financed, acquired, maintained, and operated, ensuring affordability for end users while covering costs.

Case Study 1 - Luz en Casa Cajamarca (Peru)

• Scope: 3910 households across 188 communities (12 years).
• Governance Model: 5P model (promoter, private sector, public sector, people, partners); privately owned and operated.
• Technological Model: Standalone SHS (solar home systems).
• Business Model: Fee-for-service (postpaid).
• Impact: Affordable access, high user satisfaction, reduced carbon emissions.
• Challenges: Remote location hampered maintenance and repair staff availability.

Case Study 2 - Luz en Casa Oaxaca (Mexico)

• Scope: 8525 households in 628 communities (9 years).
• Governance Model: 5P model with third-party operators.
• Technological Model: Standalone SHS (solar home systems).
• Business Model: Buy-financed systems, punctual maintenance payments.
• Impact: Subsidized costs, improved repair service, reduced carbon emissions.
• Challenges: High maintenance costs for users, resulting in low repair rates and system abandonment.

Case Study 3 - Luz en Casa Amazonia (Peru)

• Scope: 1518 households in 58 communities (5 years).
• Governance Model: 5P model; privately owned and operated by owner and third party.
• Technological Model: Standalone SHS (solar home systems).
• Business Model: Fee-for-service (prepaid).
• Impact: 100% user satisfaction, substantial energy savings, reduced carbon emissions; positive impact on operation and management of PAYG systems.
• Challenges: Missed opportunity to integrate ICT (information and communication technology) for better fee collection.

Impact of Management Model Configurations

• Governance models and community involvement are crucial for social sustainability.
• Community Learning Centers (CLCs) and Community Energy Facilitators (CEFs) enhance local engagement, maintenance, and knowledge transfer.
• Projects emphasizing local community involvement in operational tasks exhibit greater sustainability.

Impact of Technological Model Configurations

• Technology choice is vital for environmental sustainability.
• Standalone solar home systems (SHS) are ideal for remote communities due to minimal environmental impact and high sustainability, reducing carbon emissions.

Impact of Business Model Configurations

• Business models are the most significant factor impacting economic sustainability.
• Fee-for-service (EaaS) models (prepaid/postpaid) are essential for affordability in electrification projects.
• Subsidies and regulated tariffs help reduce costs for users.

Conclusion

• Rural electrification projects require customized models fitting local contexts: Fee-for-service (EaaS) for affordability, renewable technologies for environmental goals, and efficient models for long-term economic sustainability.