Environmental finance : Financing Solar Power in Senegal

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Environmental finance Financing Solar Power in
Senegal
Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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Overview
Financing solar power without subsidizing it
Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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Plan

• Parties involved
• Context
• The project
• First results
• Conclusion

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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Parties involved

• UGPM CREC
• SIDI
• Alternatives Energétiques

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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Context (1)

• drought
• locusts
• remoteness (GSM network, power)
• Consequences
• youth unemployment
• depopulation
• high dependency on oil

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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Context (2)

• MuSoG
• Kiirayu Kër Gi
• Good knowledge of peoples needs

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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The Project (1)

• Objectives
• create youth employment
• allow children to study properly
• give villages access to information
  communication tools
• allow production of water energy
• also lessen danger of fire
• increase food production
• stop the depopulation

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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The Project (2)

• 2 types of power stations
• family power stations
• villages power platforms

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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The Project (3)

• Family stations
• EF 1 4 lights and an electric socket 700
• EF 2 8 lights and an electric socket 1150
• Family expense for energy in ten years about
  1000
• Creation of a solar savings
• Families pay 20 cash, and a monthly fee
• They become owners at the end of the last
  payment
• Economical social impact

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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The Project (4)

• Village platforms
• powered water-pump, light and 1 electric socket
  (for battery restock)
• powered freezer, light and 1 electric socket
  (for battery restock)
• in the future millet shelling and grinding

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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The Project (5)

• Village platforms
• powered water-pump, light and 1 electric socket
  (for battery restock)
• powered freezer, light and 1 electric socket
  (for battery restock)
• Between 15000 and 25000
• Telecenter attached to each station (about 15
  000 in 10y)
• The water would be sold 0,01 for 20 liters
  (about 20 000 in 10y)
• Freezer buying wholesale fish could be as much
  as 160 cheaper
• TV paying screenings are about to begin
  (movies, documentaries, sports)

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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The Project (6)

• The program
• SIDI finances UGPM for 150 000
• UGPM leases solar equipments through MuSoG
• Alternatives Energétiques provides TA, which is
  helped through a French subsidies (40 000 for
  current phase)
• Stations are produced installed by UGPM team

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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First results

• project well accepted
• 2 tested villages platform, and others are being
  installed
• about 40 family station sold
• light greatly increases the quality of life
  childrens work
• increase in farming production (fruits
  vegetables) thanks to waterpumps
• 6 jobs created 4 technicians and 2
  telecentre jobs
• The technicians are ready to sell the service to
  other organisations
• economical impact, but also social impact
• but the 20 in cash is too much for many families

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07
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Conclusion

• the program has just been launched
• a new way of solidarity financing for SIDI
• the outcomes seem very encouraging, however we
  still have to tune the project
• How can we develop partnerships in Europe to
  help creating those types of programs, ie giving
  people access to basic services, without
  subsidize it but with funding it on a long term ?

Environmental Finance financing solar power in
Senegal / INAISE workshop - may 07