Solar power for communities (in Phillippines)
By Nimfa Doroteo-Camua, June 24, 2007
Source: SunStar of Phillippines
http://www.sunstar.com.ph/static/dav/2007/06/24/bus/solar.power.for.communities.html
IS THERE money in solar energy for communities, service providers and micro finance institutions? Rural Power Project (RPP) Director Mylene Capongcol said the use of solar energy under the project is a cycle of benefits for families, communities, local government units, solar system providers and micro finance institutions (MFIs).
“RPP opens up business opportunities for the entire industry,” Capongcol said. She underscored the fact that every solar energy project has to be financially viable, from the users to the investors. “Solar photovoltaic (PV) systems that produce lighting have allowed students to read their lessons at night, but that is only one aspect,” she explained.
While this kind of energy source is a big boost to children’s education, it also opens up opportunities for livelihood for families. Basket weaving, wood carving, shell crafts and other businesses have led families and even entire communities to enter into subcontracting jobs with exporters. The income generating activities create its own development cycle in the local economy.
While RPP seeks to empower people in off-grid areas, the adoption of solar energy technology should likewise open up business opportunities for sectors such as MFIs and solar PV suppliers. Both have to see that dealing with government is worth their time.
“This is precisely what we are trying to do. RPP uses a multi-sectoral approach in providing electricity to off-grid areas,” Capongcol said. As a partnership, RPP builds on trust and confidence among industry players. Business issues are addressed as each solar PV installation has tremendous impact on users, communities and LGUs.
“MFIs do not simply do business. More than business and profit is our role in the community, our obligation to society,” Cooperative Bank of Palawan manager Herudito Hista Jr. said. But MFIs as well as solar PV suppliers want to make sure of the project’s sustainability among users.
In a conference of MFIs and solar suppliers last year, both parties discussed critical success factors that would strengthen the partnership in the field level. It was pointed out that excellence of the solar PV installation, after-sales service, MFI-supplier-client relationship, and customer care are crucial and non-negotiable.
“We should all work together in transforming solar energy into a cost-effective, job-creating source of electricity,” Ramin Nadimi of Shell Solar Philippines said. Shell Solar has been installing solar PV systems in unelectrified areas nationwide for more than 20 years.
“This is a business you operate and serve the people’s development need at the same time, so we must provide an excellent product. We must also make sure that it is sustainable because if people will depend on government grants, it is good only for 10 to 20 years,” Nadimi said.
With green attributes, solar PV systems address home pollution from kerosene lamps, which have been causing respiratory diseases among families, placing children at a higher risk. Studies conducted by Madecor Environmental Management Systems show that 97 percent of residents in off-grid areas use kerosene for lighting.
To make-solar PV installations affordable in off-grid areas, the World Bank and the Global Environment Facility have set aside subsidies, which MFIs and PV suppliers can avail. Innovative subsidies buy down the capital costs in order to improve the affordability of each installation.
The RPP uses public and donor resources to finance the energy requirements for key public facilities such as barangay halls, health centers, schools, and streetlights.