Wednesday, 24 December 2014

Solar light projects

Why

Many communities are not yet reached by the electricity grid.
Lighting provides significant social and economic benefits.
Many of these communities use lighting technology that are potentially harmful, eg kerosene.
Solar lighting offers many benefits. Technology is mature, cost-effective and continuing to improve.
Suitable solar lighting products are available in Indonesia. There are many examples of successful introductions of solar lighting to communities in Indonesia and elsewhere.

What

The guide below is for individuals or groups interested in introducing solar lighting (at individual household level) to a community in a sustainable manner.

That means it will cover solar lamps or solar electricity units for individual houses. The guide will not cover the following, which are potentially more complex organisationally and financially:
  • solar street lights
  • whole of village solar lighting
For long term benefit, the project should be sustainable. The technology should be long lasting, with low maintenance. It should provide clear cost-benefit to the community. There should be local supply and support. A reliable supply chain should be able to be set up.

A diagram showing a sample supply chain...

How

The general steps for instigating and implementing a solar lighting project:
  1. identify the target community
  2. obtain involvement from a community that has successfully implemented the project
  3. verify that the target community wants the project
  4. secure seed funding to set up the supply chain and to promote the initiative to the target community
  5. establish local champions and potential partners
  6. secure the supply chain
  7. assist the partners to set up viable businesses supplying and supporting the technology
  8. promote the initiative to the target community

Identify the target community

Some key aspects of communities (eg villages or hamlets) that would be viable project targets:
  • the community, or a significant section of the community, do not have access to electricity and unlikely to get access in the next five years or more.
  • the community is big enough to support basic commerce, eg has a regular market, kiosks; or alternatively members of the community regularly trades at nearby markets and kiosks (Note that a different style of project, not covered by this guide, would be required for very isolated communities without an existing commerce network).
  • members of the community regularly spends money on some form of lighting (that do not use solar energy), such as kerosene and candles
You may be part of such a community, or the diaspora of such a community.

You may already be aware of a potential target community, eg from a request from a member of a target community, from your own experience or from a community development organisation working in Indonesia. 

If not, you can identify potential target communities by looking in regions that are not accessed by the electricity grid, and unlikely to be accessed in the next five years or more. Electricity generation master plans, such as MASTER PLAN PEMBANGUNAN KETENAGALISTRIKAN 2010 s.d. 2014, are useful resources. Articles on lack of electricity, such as http://www.mugniar.com/2014/10/pln-antara-krisis-energi-dan.html and http://kupang.tribunnews.com/2014/10/12/warga-mego-masih-pakai-lampu-pelita are also useful. We have listed some potential target regions on our website (??).

Once you have identified a potential region(s) for your project, you will need to identify potential target communities in that region. Possible ways to do this:
  • contact local authorities
  • contact local NGOs or community organisations
  • talk to someone from the area
  • visit the region

Obtain involvement from a community that has successfully implemented the project

Identify communities that have successfully implemented the project and are willing to assist. Some of these reference communities, including the contact details, are on our website (?).

Consider securing the following with the reference community:
  • willingness to share their experiences with the target community as they embark on setting up their project
  • willingness of a community leader or influencer to share their experiences with the target community and potentially to accompany project coordinator in visits to the target community
  • willingness of a technology partner (vendor) to share their experiences with the target community and potentially to accompany project coordinator in visits to the target community

Verify that the target community wants the project

The project will only succeed if there is interest from members of the community. 
You will need to explain the project and its benefits to the community. Arrange community meetings to show and tell. Bring a hands-on person from a community that has successfully implemented the project to talk and answer questions. Hand out flyers. 
You will need to get buy-in from community leaders and influencers.
Verify that there are people who would be interested in being the sellers/suppliers of the technology.

There will be costs associated with this activity:
  • travel for you, the project coordinator
  • travel for a resource person from a successful project 
  • promotional material
  • technologies for show and tell
You could postpone the bulk of this activity until after funding has been secured, as part of the activity to promote the activity to the community. In this case, you could reduce the pre-funding activity primarily to verify the suitability of the community (meets the viability criteria, there is interest, etc), without organising major meetings or involving a resource person.

Alternatively, you could try to secure funding for a feasibility study, which is essentially what this activity is.

Secure seed funding

After initial set-up, the project is intended to be self-sustaining. Users will pay for the technology from people who sell the technology products locally. The vendors will source the products through the supply chain established as part of the project set-up.

Seed funding is required for:
  • promoting the project to the community
  • identifying and establishing local champions and partners
  • setting up the supply chain
  • training the vendors and assisting them to set up viable businesses
  • seed money or loan for the vendors to purchase the initial stock
Estimate of how much funding may be required: ........
One week on location?
  • travel for you, the project coordinator
  • travel for a resource person from a successful project 
  • catering for any meetings
  • ??
Possible sources of funding:
Sample proposal for funding ...

Establish local champions and potential partners

Get buy-in from community leaders and influencers. They will help to spread the word about the project and to accelerate acceptance of the project. You will need to convince these people of the benefits of the project to the community.

Identify people who would be interested in being in the business of supplying and supporting the technology. They could either be existing traders or someone who would like to run their own business. 

The potential partners should be people who are perceived positively by the community, eg trustworthy, hard working, good business person, etc. Secure their interest to be vendors for the technology. You will need to convince the potential partners of the business viability of supplying and supporting the technology. You will also need to assure them that they would be capable of picking up the skills required for the business. 

For this activity, it would be useful to have a hands-on person from another community that has successfully implemented the project, to talk and answer questions.

Secure the supply chain

An initial inventory of products would be put in place on project setup, to meet anticipated initial demand. The ongoing supply of products is required to meet the requirement of:
  • new users
  • existing users expanding their use of the products
  • replacing unserviceable products
  • supplying additional types of products not initially provided
It is important that a reliable supply chain and support network is established. The nature of the supply chain will be determined by the transport and commercial networks available in the location of the target community. 

The first tier suppliers of the products are wholesalers or distributors in major cities, or organisations that operates to supply technology products to community development projects, such as kopernik.info (need to find if there any other organisation such as Kopernik).

There are clear benefits in using organisations such as Kopernik:
  • they have pre-selected and tested the products, including verifying the suitability of the products
  • they have an established supply chain from either wholesalers, distributors or manufacturers directly
  • they have skills and knowledge in the support and maintenance of the products, and would be able to train others to do this
  • they have experience in setting up similar projects, and would be able to provide advice
Of course, this does not preclude you from securing an alternative first tier supplier. However, it does mean that you will need to:
  • select and test the products, including verifying the suitability of the products
  • secure skills and knowledge in the support and maintenance of the products
If there are suitable distributors (for your selected first tier supplier) that are geographically closer, you could use them as your primary product supplier. 

Obtain commitment from the supplier to supply products for the anticipated level of demand from the target community in a timely manner.

You will then need to establish the transport of the products from the supplier to the location where the local partners will set up their businesses. Examples??

Assist the partners to set up viable businesses 

It is likely that the tech partners will need funding for their initial inventory. Can be through donation, loan or a mix. If you are offering loans, you will need to set up mechanisms for repayments -- this may be something that can be arranged in partnership with the supplier.

Train the partners in the use and support of the products. Brief the partners on how to inform customers of the benefits, usage and care of the products. 

Provide the partners with the details of how to order additional stock from the supplier. Payment methods. Delivery options. Provide suggestions of the level of inventory to keep. Provide suggestions on how much to charge for the products.

Give details of how to obtain second level support for the products.

Promote the initiative to the target community

Although a flyer may be useful, show and tell events (especially with catering) are the most effective. As previously mentioned, get the involvement of local community leaders and influential people. And get the involvement of partners from a reference community.

Demonstrate how the technology/products work. Explain the benefits, including how it would replace their existing lighting methods (eg kerosene, candles).

Introduce the technology partners, where people can purchase the products. Provide products for sale at the events.

Make sure there is opportunity for people to ask questions and voice concerns.






Saturday, 20 December 2014

kopernik.info

Kopernik looks like an ideal partner for solar lighting projects in Indonesia. They have:

  • inventory of solar lighting products, suggesting that they have an established supply chain and support system in place
  • methodology for introducing technology, including solar lighting, to remote/rural communities
  • trainers who can set up local entrepreneurs as part of introducing the technology to a new area
I imagine the steps for a project involving Kopernik would include:
  • identifying the target community
  • establishing local contacts and potential partners
  • securing a Kopernik consultancy to set up the project, including training, setting up logistics, promotion to the target community

Friday, 19 December 2014

Initial projects to focus on

Thinking of focussing initially on projects related to solar lighting.

Can potentially attract involvement of Bill Gresham, who is a strong advocate of renewable energy.

There are a number of groups who have implemented solar lighting into villages in Indonesia:

Will need to contact the above resource groups, to:
  • add an entry for their project
  • get contacts who would be willing to be consulted by interested parties
Should consider the following info on the projects:
  • involvement of locals (individuals, groups)
  • sourcing of materials (selection, supply chain, logistics, etc)
  • funding (donation, local contributions, etc)
  • technical support (eg if lights don't work)
  • replacement plan (after batteries expire or other equipment end of life)
  • lessons learned (what interested parties should consider when attempting to start a project)
  • links to online resources
  • contact details
Will need to identify and contact potential user groups:
  • districts with the worst electricity distribution, networks (focus districts), eg http://kupang.tribunnews.com/2014/10/12/warga-mego-masih-pakai-lampu-pelita
  • likely leaders in the focus districts
  • Indonesian NGOs that work in the energy and technology fields
  • Australian and other groups potentially interested in energy and technology projects in Indonesia
  • Indonesian diaspora (eg students) potentially interested in projects in the focus districts
  • Potential volunteers
Good idea to also identify and contact potential suppliers, donors and sponsors:
And getting a champion for solar lighting projects, who would:
  • be a strong advocate for solar lighting projects in Indonesia
  • write and source material for the website on this topic
  • respond to queries and requests from website users, forum adminstrator
  • liaise with the projects, user groups, donors, sponsors and other stake holders
Compile relevant kabupaten info and statistics:
  • electricity generation, distribution, costs
  • list of prospective focus sub-districts
  • transport network
  • budget and development plan