ITDG Conference “Power to the People“ A private sector perspective 17th July, 2002 Robert Kleiburg VP Strategy & Planning, Shell Renewables Advantages of PV: The Customer’s Perspective • Brighter light at the flip of a switch for day to day life: cooking, cleaning, reading, etc. • Cooler, more concentrated light for children’s studies • Television without transporting heavy car batteries 2-4 hours every week • Regular use of the radio without regular expense of dry cell batteries • Improved earnings from sewing, sorting produce, small attached shop, etc. • Brighter lights for larger village shops without the hassle and expense of petromax lanterns or generators • Increasing use for mobile phones and computers in village centers The Case of Sri Lanka • • • • • • • • • Average system price - 450 USD Micro-finance - $100 down-payment, 24% interest p.a., 200 credit officers World Bank grant for companies, passed on to customers via competition Shell Solar - 17 branches, 140 sales staff, 100 technicians, 50 HQ staff Growth in sales volume - 2000: 350%, 2001: 200% Total installed base in 2.5 years - 10,000 systems Now a competitive market - 4 rural operations with branches throughout island Follow-on GEF/World Bank Project will target 100,000 households The Net Result… Only 10,000 systems sold in 12 years (1987-1999), whereas with assistance an additional 20,000 systems sold in two and half years (2000- mid 2002) Overview – Shell Solar rural operations Sri Lanka: 30,000 home World Bank sponsored free market South Africa: 50,000 home fee for service concession India: direct sales with some support schemes The Philippines: 15,100 home Dutch MILIEV program Morocco: 7,000 home fee for service Bolivia: 5,500 home fee for service China: 78,770 home Dutch ORET/MILIEV program Retail sales of PV to remote homes in developing countries is tough, but potentially viable in some niches Assistance Needs to Address Two Core Barriers • Affordability – Households tend to buy their power requirements in small amounts whereas a solar home system costs anywhere from $100-$1000 – Many households earn enough to afford the system, it is more a question of being able to pay for it over time, in small amounts • Availability – The incentive is not currently sufficient for mainstream businesses to invest in rural PV operations – Without a salesman and technician on their doorstep, rural customers cannot easily buy PV, let alone have it installed and maintained
Practical Action,