FRES (Foundation Rural Energy Services) is an independent non-profit foundation, which was established in 2004 by Nuon, one of the electricity companies in the Netherlands. FRES provides clean electricity to families in rural areas in developing countries, by setting up small-scale electricity companies that generate electricity from solar power.
 

The availability of electricity has a positive influence on the lives of impoverished people: electrification contributes to economical growth, and thus to the combating of poverty in developing countries.

Extended economic activity is also possible: people can work more hours into the night in local stores; electrification makes lighting in homes and schools possible, and in this way allows people to read, teach or be taught for extended periods of time.

Children accomplish more by improved lighting at school and at home, and it helps them do their homework.

Hospitals and maternity clinics can provide care for 24 hours per day. Health issues caused by smoke or fire hazards are also decreased.

Improved access to communication methods such as radio, television and mobile telephony provides a window to the world.

Local companies can expand their production capacity by having access to electricity.

It is inevitable to concentrate more on alternative power sources when we look at the depletion of oil supplies and the stigma that is associated with nuclear power. Rising oil prices will also make alternatives more interesting. There are predictions that in ten years, the costs of solar power is equivalent to that of traditionally generated electricity. Despite the current price of solar power (approximately € 0.50 per kilowatt-hour, compared to € 0.20 for conventional sources), it is already an economically cost-effective source in areas that are not connected to the national electricity grid. Expansion of the national grid to rural areas in developing countries is simply too costly: alternative power sources are often the only possibility for providing these areas with electricity. Photovoltaics (by means of Solar Home Systems) are the least costly solution for rural electrification in developing countries.

A standard SHS is depicted below. It consists of a battery and a solar panel with a capacity of 50 peak watts, which provides enough power for several lamps and outlets for a radio and/or television for a few hours per day.

- Access to electricity in areas with no electricity grid present;
- Rapid installation and eventual disassembly in case of the establishment of an electricity grid;
- Low maintenance;
- The system can be expanded according to the needs or budget of the customer;
- Cheaper per kWh than candles, batteries and/or lamp oil;
- No emission of hazardous materials.
 

- It is not possible to connect more than a certain number of appliances;
- Cooking and heating/cooling do not belong to the possibilities;
- The technology requires high initial investments.

Under the fee-for-service concept, the customer rents the SHS and pays a monthly fee, the height of which is determined by the service level selected by the customer. The electricity company remains the owner of the installed systems and is responsible for any maintenance costs incurred. Customers can go to a number of energy shops in the project region for maintenance and other services and payments. Cheaper (smaller) panels can usually be paid by the customer directly. The maintenance costs and the risk of defects in this case is the sole responsibility of the customer. Experience shows that customers do not sufficiently take into account the after-sales costs of solar panels, that there is no infrastructure present for performing maintenance and subsequently no means to repair or replace a SHS. For these reasons, FRES has chosen to work with the fee-for-service concept.
 

- Long term approach: the SHS remains in working condition because maintenance is guaranteed;
- Ease of use for customers: there are no (unforeseen) costs for repair, and the panels and batteries need not be installed by themselves;
- Economic stimulus for the region: structural employment, where the personnel is instructed by the company itself;
- Knowledge transfer of professional labour.
 

The Malinese government has received support from the World Bank to promote rural electrification. AMADER is the agency that subdivided these subsidies. It is possible that other areas in Mali are suitable for electrification projects.
 

FRES manages the joint venture “SSD-EN Yeelen Kura” on behalf of Nuon.
 

The name is, in full, “la Société de Services Décentralisés EDF Nuon – Yeelen Kura". EDF (Electricité de France) is the French national electricity company, which is the partner alongside Nuon in the joint venture. “Yeelen Kura” means “new light” in the local language of Bambara.

» What is the goal of Yeelen Kura?

Yeelen Kura aims to provide electricity to approximately 5,000 households, spread over 20 villages, by 2010. Currently, the company services 1,706 households.
 

President, and also representing FRES, is Annemarie Goedmakers. Ingrid Plag represents Nuon as a board member. Alain Guyader and Jean Jaujay are the board members representing EDF.
 

The electricity is generated by Solar Home Systems. There are three service levels customers can choose from. These vary from two to four power connections and one or more outlets for charging a mobile phone or connecting a radio or television set, during five hours per day. Customers pay a fee depending on the service level they choose from.
 

FRES strives to make the prices for the sustainable electricity it provides comparable to the original amount the customer expended on lamp oil, diesel fuel, etc. To reach these prices, subsidy is needed. Nuon and EDF received subsidies in the initial phases from the Dutch ministry of Foreign Affairs (ORET/MILIEV subsidy). In 2005, a subsidy request was submitted to AMADER (a Malinese government agency, established to promote rural electrification).
 

FRES manages the joint venture Nuon Raps Utility (Pty) Ltd, also known as NuRa, which is situated in the northern part of the Kwazulu-Natal province.

The South African government announced a program for the benefit of rural electrification in 1999, as many isolated areas would not be getting a power grid within the foreseeable future.

NuRa aims to provide clean electricity to 50,000 customers, in the long term. Currently, NuRa services 10,434 customers.

NuRa employs the Energystream™ power management system, which was developed by RAPS Technologies. Every SHS is equipped with a power management unit that makes data transfer and payments in advance possible between the customer and the energy store. If the customer does not pay on time, the SHS will shut itself off. It can only start providing electricity again if the customer takes the specially developed key and recharges the credit at the energy store. If the customer doesn’t pay for a period of three months, and ignores any requests hereto, the SHS will, in principle, be disassembled.

The board of NuRa is formed by Bart Blokland (Nuon; president), Coen de Ronde (Nuon) and Douglas Banks (RAPS). Sifiso Dlamini is the general manager of NuRa.