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FRES
» What is fres
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.
» What are the goals of FRES?
FRES aims to achieve the following: to promote rural
electrification in developing countries, preferably by using solar power;
managing and expanding the existing two joint ventures Yeelen Kura in Mali
and NuRa in South Africa, on behalf of Nuon.
» How does FRES mean to achieve its goals?
FRES promotes
rural electrification in developing countries on a structural basis, by
setting up small-scale commercial electricity companies. Firstly, this
provides electricity to people who are not connected to a power grid;
secondly, this provides an economic stimulus to the region by supplying a
structural source of employment.
»
What are the benefits of rural
electrification?
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.
» Why solar power?
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.
» What is a solar system (SHS)?
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.
» What are the benefits of using Solar
Home Systems?
- 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.
» Are there limitations to using Solar
Home Systems?
- 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.
» Why does FRES use the fee-for-service concept to provide electricity?
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.
» What are the advantages of using 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.
» Are there any projects planned in
the future?
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.
MALI
» What are the activities of FRES in
Mali?
FRES manages the joint venture “SSD-EN Yeelen Kura” on behalf
of Nuon.
» What does the
name of the joint venture mean?
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.
» Who is in the
board of Yeelen Kura?
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.
» What kind of
electrification services does Yeelen Kura provide?
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.
» How are the
electrification services financed?
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).
ZUID-AFRIKA
»
What are the activities of FRES in South Africa?
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.
» How was this electricity company established?
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.
»
What is the goal of NuRa?
NuRa aims to provide clean electricity to 50,000 customers, in the long term. Currently, NuRa services 10,434 customers.
» How does NuRa provide her electricity services?
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.
»
Who is in the board of NuRa?
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.
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