potencialidad de la zona andina para acceder al mercado de carbono completo

8/12/2019 Potencialidad de La Zona Andina Para Acceder Al Mercado de Carbono Completo

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Microsol and Rexel Foundation

Study of the potential tospread energyefficiencys carbonprograms in Andeancountries Paris, May 2014

www.microsol-int.com www.rexelfoundation.com
http://www.microsol-int.com/http://www.rexelfoundation.com/http://www.rexelfoundation.com/http://www.microsol-int.com/


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Table of contents

Table of contents.......................................................................................................................................... 3

Acronyms and Abbreviations ....................................................................................................................... 7

Foreword ...................................................................................................................................................... 8

Acknowledgments ...................................................................................................................................... 10

Executive summary in English .................................................................................................................... 11

Introduction and methodology .................................................................................................................. 28

I. Electricity and lighting context in the Andean countries .................................................................... 32

I.1 Electricity and lighting needs ...................................................................................................... 33

I.1.1 Traditional solutions for electricity and lighting access .......................................................... 33

I.1.1.1 Getting to know the area to understand people needs ...................................................... 33I.1.1.2 Electricity and lighting for off-grid people: uses and traditional solutions ....................... 35

I.1.2 Needs for efficient lighting and electricity access in rural areas ............................................. 37

II. Efficient electricity and lighting solutions ........................................................................................... 45

II.1 Upsides of efficient decentralized solutions ............................................................................... 46

II.1.1 Grid solutions VS decentralized solutions ........................................................................... 46

II.1.2 The relevance of decentralized solutions in Andean countries .......................................... 47

II.2 Renewable energy and lighting solutions ................................................................................... 50

II.2.1 Solar energy for electricity generation ............................................................................... 50

II.2.2 Wind turbines ..................................................................................................................... 51

II.2.3 Hydro energy ...................................................................................................................... 51

II.2.4 Biodigestion for electricity generation ............................................................................... 52

II.2.5 Lighting solutions ................................................................................................................ 54

II.2.6 The distribution model ....................................................................................................... 55

II.2.6.1 Energy Hubs .................................................................................................................... 55

II.2.6.2 Home Systems ................................................................................................................ 56II.2.6.3 Mini-grid ......................................................................................................................... 57

II.2.6.4 Cost comparison between mini-grid and home systems ................................................ 57

II.2.7 Conclusions on technological options ................................................................................. 58

II.3 Creating a successful access-to-energy project .......................................................................... 61


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II.3.1 Towards ownership: design the project with stakeholders ................................................ 62

II.3.1.1 Identification of the needs ............................................................................................. 62

II.3.1.2 Stakeholders involvement: consultation and implication ............................................... 63

II.3.2 Towards ownership: management model .......................................................................... 64

II.3.3 Towards ownership: project implementation .................................................................... 66

II.3.3.1 Participation of the users ................................................................................................ 66

II.3.3.2 Participation of the stakeholders .................................................................................... 67

II.3.4 Towards ownership: project operation .............................................................................. 68

II.3.4.1 Training of users ............................................................................................................. 68

II.3.4.2 Training of local technicians ........................................................................................... 69

II.3.5 Toward ownership: long-term sustainability ...................................................................... 70

II.3.5.1 Long-term follow-up visits .................................................................................................. 70II.3.5.2 Maintenance & Repair activities ......................................................................................... 71

II.3.5.3 Recycling ............................................................................................................................. 72

II.4 Conclusions on the Part II ........................................................................................................... 73

III. Relevance of carbon markets for rural electricity and lighting access ............................................ 74

III.1 General presentation of carbon markets.................................................................................... 75

III.1.1 Compliance carbon market VS Voluntary carbon market ................................................... 75

III.1.2 Projects versus programs of activities ................................................................................ 76

III.1.3 Carbon certification process ............................................................................................... 76

III.1.4 Assessing revenues and costs: carbon methodologies ....................................................... 77

III.1.5 Emission reductions and carbon credits ............................................................................. 78

III.1.6 Impacts of carbon markets on projects sustainability ........................................................ 79

III.2 Methodologies for energy and lighting access ........................................................................... 79

III.3 General criteria to assess the relevance of carbon markets for a lighting or electricity accessproject 82

III.3.1 General criteria ................................................................................................................... 82

III.3.2 Profitability on carbon markets .......................................................................................... 82

IV. Relevance of carbon markets in the Andean countries for rural electricity and illumination access 84

IV.1 Screening of projects in each country ............................................................................................. 85

IV.1.1 Rural electricity and lighting context in Colombia .............................................................. 85


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IV.1.2 Rural electricity and lighting context in Ecuador ................................................................ 85

IV.1.3 Rural electricity and lighting context in Peru ...................................................................... 86

IV.1.4 Rural electricity and lighting context in Bolivia ................................................................... 87

IV.1.5 Rural electricity and lighting context in Chile ..................................................................... 87

IV.1.6 Electricity and lighting projects........................................................................................... 88

IV.2 Eligible projects in each country: overview ................................................................................ 93

IV.3 Eligible projects in each country: detail of main opportunities .................................................. 95

IV.3.1 Peruvian bidding for rural electrification through solar panels .......................................... 95

IV.3.2 Diffusion of solar lanterns in Bolivia ................................................................................... 96

IV.4 Funding opportunity for a carbon scheme focused on access-to-energy issues......................... 98

V. Conclusions and recommendations ................................................................................................. 100

V.1. Costs-benefits analysis : find the equilibrium between scale and economic viability ................... 100V.1.1. Cost-benefit for lighting activities certification on the carbon market ................................... 101

V.1.2. Cost-benefit for disseminated renewable energy activities certification on the carbon market......................................................................................................................................................... 103

V.2. The need for an innovative approach in the valorization of access to energy services ................. 105

V.2.1. Possible strategies for improving the carbon sales assumptions ........................................... 105

V.2.2 Application for lighting and disseminated ENR projects ................................................... 106

V.3. Proposal: An improved carbon scheme fostering the valorization of access to energy services

projects through impact-based partnerships ....................................................................................... 107Bibliography ............................................................................................................................................. 108

Sitography ................................................................................................................................................ 110

Annexes .................................................................................................................................................... 112

I. Country fact sheets....................................................................................................................... 112

I.1 Colombia .............................................................................................................................. 112

I.2 Ecuador ................................................................................................................................. 121

I.3 Peru ...................................................................................................................................... 129

I.4 Bolivia ................................................................................................................................... 137

I.5 Chile ...................................................................................................................................... 147

II. Technological sheets .................................................................................................................... 156

II.1 Solar panels .......................................................................................................................... 156

II.2 Wind turbines ....................................................................................................................... 164


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II.3 Micro hydro centrals ............................................................................................................ 171

II.4 Biodigesters .......................................................................................................................... 179

II.5 Lighting solutions .................................................................................................................. 185

III. Projects visits ............................................................................................................................ 194

III.1 September 2013, San Juan de Abiseo (Peru) GIZ, solar lanterns ....................................... 194

III.2 September 2013, Pucar (Peru) Practical Actions, multi-technology................................. 198

III.3 October 2013, Sicuani (Peru) Practical Actions, solar panels ............................................. 204

III.4 October 2013, Paruro (Peru) CECADE, multi-technologies ................................................ 212

III.5 October 2013, Canas (Peru) Grupo PUCP, river-turbines ................................................... 219

III.6 October 2013, Mizque, Aiquile, Santiago de Machaca (Bolivia) PEVD and Energtica, solarpanels 226

III.7 November 2013, Tarapaca (Chile) Desafio Levantemos Chile, solar panels ....................... 237

III.8 November 2013, Esmeraldas (Ecuador) SEBA and FEDETA, solar panels ........................... 242

III.9 November 2013, Bolivar (Colombia) Ipse, followers solar panels ................................ 250

III.10 December 2013, Lima (Peru) Market study ................................................................... 256

III.11 Short field visits ................................................................................................................ 258

IV. Carbon analysis............................................................................................................................. 266

IV.1 Lighting projects ....................................................................................................................... 266

IV.1.1 Lighting: Eligibility criteria to enter carbon markets ......................................................... 266

IV.1.2 Lighting: Costs and benefits analysis ................................................................................ 269IV.2 Electricity access projects ......................................................................................................... 274

IV.2.1 Electricity access: Eligibility criteria to enter carbon markets ........................................... 274

IV.2.2 Electricity access: Costs and benefits analysis .................................................................. 276

V. Other ................................................................................................................................................ 281

V.1 Peruvian bidding summary ................................................................................................... 281

V.2 Regional electrification maps: comparison of the number of rural households lackingelectricity access............................................................................................................................... 285

V.3 List of interviews and conferences ........................................................................................... 286

V.4 Interview guidelines ............................................................................................................. 293

V.4.1 Interview guidelines for institutional actors ................................................................. 293

V.4.2 Interview guidelines for fields visits ............................................................................. 296


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Acronyms and Abbreviations

CME Carbon Management Entity

CFL Compact fluorescent lamp

ECLAC (CEPAL) Economic Commission for Latin America and the Caribbean

ENDEV Energizing Development program

ER Emissions reduction

GHG Greenhouse Gas

GIZ German Cooperation Agency (Gesellschaft fr Internationale Zusammenarbeit)

GS Gold Standard

HLD HouseholdIADB (BID) Inter-American Development Bank (Banco Interamericano de Desarrollo)

LAC Latin America and the Caribbean

LED Light-emitting diode

LPP Local Project Manager

MDG Millennium Development Goal

MHG Micro Hydro Generators

MINEM Peruvian Energy Ministry (Ministerio de Energa y Minas)

MWG Microwindgenerators and Miniwindgenerators

NGO Non-Governmental Organization

RE Renewable energy

OLADE Latin American Energy Organization

UNIDO United Nations Industrial Development Organization

PA Practical Actions (International NGO)

PoA Program of Activities

SHS Solar Home SystemSNV Duch NGO (Stichting Nederlandse Vrijwilligers)

UN United Nations


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Foreword

The Rexel Foundation's mission is to promote access to energy efficiency for all based on three keypillars. One of them, knowledge, is to raise awareness of energy efficiency in order to improve ourunderstanding of the issues and the possible solutions through studies, conferences and workshops, aswell as through the support and advice of expert committee members. In line with that commitment, theRexel Foundation decided to partner with Microsol on the study presented in the following document.

Microsol is a social organization that supports project developers of appropriate technologies in LatinAmerica through notably the valuation of their environmental impacts on the international carbonmarket in order to obtain financial resources for the sustainability of their initiatives. Microsol is reputed

both for focusing on programs with a high contribution to poverty alleviation, which is a key issue in thestudy, and for its expertise in measuring the impact on communities. Finally, Microsol is a solidorganization that has committed to the Rexel Foundation in a close and transparent partnership.

This study meets all of the Rexel Foundations core principles for taking part in a project:

- It is socially innovative, as it focuses on projects that drive social progress, improve quality of lifeand provide better access to sustainable sources of energy for the most disadvantaged insociety: in this case, remote rural population in the Andean zone;

- The study focuses on technologies that are environmentally friendly and provide energy savings that could be implemented in the Andean zone to increase access to energy efficiency for all,provide energy savings for end-users and have a significant positive environmental impact;

- The study was conducted in a collaborative partnership with a work process involving researchand the collaboration of all stakeholders (local and national authorities, NGOs, privatecompanies) as well as many visits to rural communities.;

- The final part of the study discusses ways of making these carbon schemes repeatable andscalable.

The objective of the study was to identify and explore:

- The dynamics involved in spreading energy efficiency programs among the most disadvantaged

populations;- The opportunities for using carbon mechanisms to foster their widespread dissemination.

The perimeter included five countries: Bolivia, Chile, Columbia, Ecuador and Peru, according to bothRexels and Microsols geographical presence.


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After seven months of field survey and bibliographic research and by gathering qualitative informationon geographical, social, technical, managerial, operational and economic aspects, this study providessolid answers. It suggests concrete actions to take in order to provide access to energy efficiency fordisadvantaged people through carbon mechanisms.

It ultimately exceeds its initial purpose by raising an additional issue: How should carbon credit schemesevolve to better contribute to the development and the sustainability of projects with high social andenvironmental content whose aim goes beyond mere carbon reduction?

While the next step of the Kyoto Protocol is being questioned, this study provides original knowledgeand points the way to ready-to-experiment projects, thus making a valuable contribution to reflection onthe future of carbon mechanisms.

I hope that many will take the time to read this report and reflect on its lessons for the potential offighting poverty thanks to energy efficiency programs and a new approach to enhancing their valueinspired by a UN mechanism.

Xavier GALLIOT

Sustainable Development Director for the Rexel Group

General Secretary for the Rexel Foundation for a Better Energy Future


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Acknowledgments

The study of the potential to spread energy efficie ncys carbon programs in Latin America wasundertaken by a team comprising the Rexel Foundation and Microsol. The report itself was prepared byseveral authors including Abdou Mourahib, Pol Raguns, Aurlien Cartal, Armand de Durfort, CharlotteVailles (all from Microsol). The study and report preparation were managed by Emilie Etienne fromMicrosol.

The study would not have been possible without the voluntary contributions of a large number of peopleand institutions, including Ministries, the Inter-American Bank of Development, international

cooperation agencies, United Nations bodies, NGOs, research centers, company and final users of thetechnologies, as well as without the funding of Rexel Foundation.

The study team members would like to dedicate this report to the people who are still lacking efficientelectricity and lighting access in the Andean countries and who struggle with dignity to improve theireveryday lives.

Please address any questions or comments about this report to:Emilie Etienne ([email protected]).


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Executive summary in English

This report provides an analysis of the potentialto spread energy efficiencys carbon programs

in Latin America, focusing on 5 Andeancountries (Colombia, Ecuador, Peru, Bolivia andChile) and two main issues: access to electricityand lighting for poor people. The study was ledby Microsol and funded by the RexelFoundation, from June 2013 to May 2014.Methods of investigation include: (i) and (ii) ananalysis of projects potential (needs of thepopulation, available technologies, projectssuccess criteria), (iii) a carbon analysis (eligibility

criteria, assessment of the economic interest forprojects to enter the carbon market) and (iv) afeasibility assessment related to the carbonmarket for electricity and lighting projects, (v)with recommendations on the different options.The results of this study are based on interviewsof key actors in the five countries considered(175 people interviewed from 97 institutions),field visits of ten renewable energy projects andliterature review. The recommendations aremade on basis of Microsols experience andanticipations.

Limitations

The analysis conducted has limitations, includingdifferences in statistics according to the sources.The statistics presented here are the mostrecent and from sources that were consideredas the most reliable. For internationalcomparisons, we used as much as possible datafrom international statistics agency such asECLAC. In addition, there is no clear definition ofwhat access to electricity means. For example,in Colchane (Chile), close to the Bolivian border,

the city is considered as electrified even ifpeople have only 3 hours a day of light.

Electricity and lighting context in the

Andean countries

Although the area of the study is large andextremely diverse, it can be divided into threevery different areas, relatively homogeneous interms of culture and climate: the Highlands, theCoast and the Amazon rainforest. The culturaland productive activities of these three areasare various, impacting needs for energy.Nonetheless, all the off-grid households share

the same basic use of electricity: the mostwidespread uses of electricity for householdsare lighting, radio (for local news, music andcommunication) and charging cellphones . Forhealth centers, electricity is necessary for manyactivities, including to store vaccines and toperform activities by night (childbirth forexample). For education, electricity is necessaryto use modern pedagogical tools (computers,videos, etc.) and to fight the technological gap

between urban and rural children.

To perform these activities, candles, keroseneand diesel lamps (also called wick lamps) as wellas non-rechargeable batteries are the mostfrequent solutions. Small businesses sometimesuse more expensive solutions such as a dieselgenerator or car batteries.

This lack of efficient electricity and lightingaccess is limiting development, preventingimprovements in education, health, security andeconomic situation at households andcommunities level. The environment is alsoimpacted at an international level throughgreenhouse gas emissions, which increaseglobal warming.


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6.1 million rural people in the five countries arein this situation, lacking proper electricityaccess, although with great variations betweenthe five countries. Bolivia has by far the lowestrural electricity rate even if it is in Peru that the

absolute number of rural people withoutelectricity access is the highest, followed byBolivia and closely by Colombia. Chile almostcompleted its rural electrification process.

Efficient electricity and lighting solutions

Relevance of decentralized electricity andlighting systems in the Andean countries

Even if grid extension and grid densification arethe governments preferred options forelectrification, they are sometimes not suitablein rural areas. Decentralized electricitygeneration solutions such as renewable energysolutions can be relevant for electricity and

lighting if they are cost-competitive (comparedto grid extension), technically and legallyfeasible, with the following remarks:

1. Andean countries have a very low

population density compared to therest of the world, reducing therelevance of the extension of nationalgrid in remote areas. Nevertheless, thesituation is far from beinghomogeneous, with Bolivia having lessthan 10 inhabitants/km 2 and Ecuador,more than 60 inhabitants/km 2 (as acomparison, Frances density ofpopulation reaches almost 100

inhabitants/km2

).

2. House dispersion is high in the fivecountries since the communitiesneeding electrification are usually thesmallest ones. Farming activities is oneof the reasons of the extremedispersion of houses.

3. Non-electrified communities are

difficult to access in the five countries,because they are usually located in the jungle or in the highlands, with only afew or no roads at all.

4. The government willingness to pay forgrid extension is very different in thefive countries, impacting the interest inrenewable energy based systems. Forexample, in Bolivia, the government is

willing to pay 950 for grid extensionper household, while Chile can invest upto 13 800.

5. Lighting needs are a special case: apartfrom lighting houses, farmers frequentlyneed a moveable lighting solution to be

COLOMBIA 13 % of rural households withoutelectricity (1,5 million rural people)46% of people are poor in rural areas

ECUADOR 10 % of rural households withoutelectricity (0,5 million rural people) 39% of people are poor in rural areas

PERU 36 % of rural households withoutelectricity (2,4 million rural people)50% of people are poor in rural areas

BOLIVIA 42 % of rural households withoutelectricity (1,6 million rural people)

55% of people are poor in rural areas CHILE 6 % of rural households withoutelectricity (0,1 million rural people)9% of people are poor in rural areas


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able to work in the fields outside ofdaylight hours.

Choosing the right technology

Choosing the right renewable energy solutiondepends on the availability of natural resources,cultural habits, costs, needs and the distributionsystem (energy hubs, mini-grids, individualsystems). This study focused on sixtechnologies: solar panels, micro hydroturbines, biodigesters for electricity generation,wind turbines and stand-alone lighting devices,with the following remarks:

1. Biodigesters for electricity generationare not suitable for a single family (tooexpensive) and there are very fewbiodigesters for electricity generation at acommunity level because of the deficiencyof organic inputs.

2. When houses are close to each otherand when water is available all year long,hydro tends to be the cheapest technology.Nonetheless, these two specific conditionsmake it difficult to implement micro hydroat a large scale.

3. Wind turbines are not used a lot inthe Andean countries. Limitations includelack of detailed wind maps.

4. Solar works almost in every regionof Andean countries thanks to high solar

radiations. It is by far the most frequentsolution for off-grid rural electrification,despite of its higher costs.

5. In Latin America, only solarlanterns are currently used as lightingstand-alone devices.

Creating a successful energy project

After more than a decade of renewable energyprojects for rural electrification, technologiesare well known and technical failures are

relatively limited. The greatest challenges forrenewable energy projects, is the necessity tofoster a sense of ownership and care by end-users and stakeholders during the five stages ofthe project: (i) the projects design should allowthe creation of (ii) a proper management model,which will define (iii) the implementationprocess, (iv) operations and (v) long-termsustainability.

During the project design, it is important tocreate the conditions for projects ownership ,through a close identification of needs, theparticipation of end-users and the implication ofstakeholders in the whole decision-makingprocess.

The management model should be agreedduring the project design: it should define whois responsible for the installations, service andmaintenance, and how the costs are covered.

Many management models already exist,ranging from totally private initiatives, tophilanthropic models where the beneficiaries donot cover any costs, including cooperativemanagement systems, through communityelectricity committees, etc. The choice of themanaging model depends on the actorswillingness to pay, the organization of thecommunity, the stakeholders implication

As a third step, users and stakeholdersparticipation during project implementation isnecessary for their good acceptance of both theproject and their own responsibility in it.

To guarantee the sustainability of the project,installations should be used in a proper way.


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The training of end-users is of the utmostimportance: the training should beunderstandable and adapted, at a collective andindividual level; instructions for use should beexplained several times to several members of

the households. If possible, local technicians should be trained, especially if the community isvery remote. For solar projects for example, themost common problems lie in the battery use:the lack of distillated water, its overuse, or itsmisuse for cars, reduce its lifespan.

Even if the projects are successful in the shortterm, the long-term success is not guaranteed:funds are often lacking for follow-up visits or to

deal with recycling issues.

The third section of the report studies therelevance of carbon markets to address theissues renewable and lighting projects arefacing.

Carbon markets

Carbon markets allow a continuousimprovement , impacts certification and long-term financial support for projects that reducethe emissions of greenhouse gases.

There are two main mechanisms for the carbonmarket:

the compliance market , linked to theKyoto protocol and legal obligations toreduce emissions,

the voluntary carbon market

Microsol works primarily with the voluntarymarket: not only the market entrance processis shorter (about 2 years) but it is also possibleto generate more financial resources in thevoluntary market than in the compliancemarket, due to carbon credits flexible prices inthe first one.

The calculation of carbon emissions reduction isbased on a methodology, created by a carboncertification body (the United Nations (UNFCCC)or other certification standards like the Gold

Standard, Verified Carbon Standard, etc). Thecarbon revenues depend on the reduction ofemissions and on the price of carbon creditswhile the carbon costs will depend on themonitoring requirements. Carbon monitoring isdifferent if the installations are connectedthrough a mini-grid (several households areconnected to one electricity generator) or ifinstallations are disseminated (for example,each household has its own solar panel or itsown wind turbine).

Carbon methodologies for lighting andelectricity projects

This study focused on two carbonmethodologies:

- For renewable energy projects: the GoldStandard methodology, Micro-scaleelectrification and energization

- For lighting: UNFCCC, AMS-III.AR, Substituting fuel basedlighting with LED/CFL lightingsystems


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The following remarks can be observed:

For renewable energy:

5,000

households

10,000

households Potentialcarbonrevenues

In the case ofmini-grids: 12 to 70 kUSDper year

In the case ofdisseminateddevices: 5 to 20 kUSDper year

In the case ofmini-grids: 24 to 100kUSD per year

In the case ofdisseminateddevices: 10 to 40 kUSDper year

Projects of electricity generation throughrenewable energy may not be easy toimplement on the carbon market. They requirea lot of work throughout the crediting period,which will depend on the technology and thetype of installation. However, it may be worth itfor the project developer to enter the carbonmarket, if the size of the project is big enough.

For lighting:

Potentialcarbonrevenues

10 000 lamps 50 000 lamps60-120 kUSD 300-600 kUSD

Projects of solar lighting devices distributionappear to be quite easy to set in place throughthe carbon market. In addition, solar lamps are

relatively cheap (USD 15 USD 80). Monitoringrequirements and eligibility criteria are not verystringent. However, carbon revenues are notvery high and a consistent amount of lanternsseems required to achieve profitability.

Carbon market opportunities in Andeancountries

The carbon market can be a relevant option iftwo conditions are met:

- Carbon mechanisms must have beenconsidered during the Projects design step and must be necessary to increasethe emissions reduction. This i s theadditionality or previousconsideration criterion.

- The benefits from the carbon creditssales must be higher than the costslinked to the carbon marketcertification.

The amount of claimable carbon creditsdepends on the size of the project and on theefficiency of the installations (for example, if asolar lantern is not working anymore, or if it isnot used by the family, it will not generate anyemission reduction).

We evaluated the minimum project size toreach the break-even point after 8 years on thecarbon market. In other words, we calculatedwhat the minimum size of a project is so that,after 8 years on the carbon market, costs areequal to revenues:

- 9 000 14 000 families electrified withdisseminated renewable energyinstallations, considering a total

installed power of 1150 kW (except forenergy resulting from biodigesters 1).

1 Another methodology should be used to calculatebiodigester s emissions reduction: this study does notdetail such methodology because of the lack of projectsdealing with biodigesters for electricity generation in theAndean countries.


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- 8 000 12 000 very poor families 2 electrified with mini-grid renewableenergy installations (exceptbiodigesters) with a daily consumptionof 500 Wh, or 2000-3000 families with a

slightly better living conditions(2kWh/day).

- 900 - 1 300 schools electrified withmini-grid renewable energy installations(except biodigesters).

- 1 200 - 1 800 health centers electrifiedwith mini-grid renewable energyinstallations (except biodigesters).

- 13 000 - 19 000 lanterns (a family canown several lanterns).

The next section provides recommendations onthe minimum amount of installations that wouldbe necessary to generate enough benefits withthe carbon market.

Conclusions on the relevance of carbon market

for projects set up in the 5 Andean countries

1. While Chile, Peru and Colombiapromote both the voluntary and the compliancecarbon markets, Bolivia and Ecuador have anintermediate position. In Ecuador, thecompliance market is well developed but thereis only one project registered on the voluntarycarbon market. As far as Bolivia is concerned,there is no compliance market and a fewprojects on the voluntary carbon market. Theposition of the Mother Earth Office, responsible

for the official position of the Boliviangovernment on carbon markets, is still unclearon this issue but might evolve in 2014.

2 Situation of very poor beneficiaries who own the bareminimum (they may own lamps, and radios for example,but nor fans neither fridges).

2. All the Andean countries have currentlyrenewable energies projects, but only a fewprojects match the carbon marketrequirements, especially the size criterion.

3. Apart from Chile where theelectrification rate is very high, all the Andeancountries aim to reach a universal (or almostuniversal) access to electricity within 15 years,which should result in the development ofconsistent solar projects in rural areas carriedon by the national governments. At this stage,Ecuador and Colombia are developing solar pilotprojects in order to replicate them by 2016.Bolivia and Peru benefit from a greater previousexperience regarding isolated solar panelsimplementation.

4. Independent lighting solutions are onlyconsidered by government programs in Bolivia.In Peru, the private sector is getting organizedwith the support of the Endev program(coordinated by GIZ, German cooperation) tospread this technology.

Eligible projects in the short term

Two projects in the Andean regions couldbenefit from carbon credits:

1. In September 2013, the Peruvian EnergyMinistry published an invitation to tender toelectrify up to 410 000 households, 7530 healthcenters and 2100 schools through solar panels .

Up to 3 companies can win the tender; each ofthem would be responsible for one region(Northern, Center or Southern Peru).

The tender is supervisedby Osinergmin, thecountrys supervisory agency for investments inenergy and mining, with consultancy from theInterAmerican Development Bank (IADB). The


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bidding results will be published on September12th, 2014.

For this project, there should be no problemswith the previous consideration of carbon

market criteria since it is included in the projectdatabase: all the bidders are likely to includecarbon consideration within their project. Inaddition, carbon market is a hot topic in Perusince the 20 th conference on climate change(Conference of Parties COP) will be held inLima in November 2014. But there is a risk thatthis ambitious bidding fails.

The graph below summarizes Microsols analysisregarding the relevance of integrating thisproject on carbon market:

2. In Bolivia, the InterAmericanDevelopment Bank is funding a solar lanternproject (Phocos model, 80$), which will beimplemented by the NGO Energtica. 10 000lamps should be distributed in a first step, and5000 more it the test is successful.

The project will be implemented in the secondsemester of 2014, for 5 years.

This project is big enough to generate revenuesthat offset the costs associated to carbon

market integration. Nevertheless, the net profitsare limited: it could be a good opportunity if thesolar lanterns market increase in Bolivia which islikely to happen since many actors promote thistechnology. In addition, key actors such asEnergtica are already familiar with carbonmarket process and the methodology for solarlanterns is relatively easy to implement.Nevertheless, before integrating this project oncarbon markets, it would be first necessary to

get the government support regarding carbonmarket relevance for the national politicalorientations.

The graph below summarizes Microsol s analysisregarding the relevance of integrating thisproject on carbon market:


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Conclusions and recommendations

Cost-benefits analysis: find the equilibrium

between scale and economic viability

Microsol produced a cost-benefit analysis ofrenewable electrification and lighting in order tofind the equilibrium between scale andeconomic viability on the carbon market.

All economical analysis are based on :

- Conservative assumptions in terms of price(10 USD / issued carbon credit);

- The standard business model of Microsolregarding division of responsibilities :

The LPP (Local Project Participant): theowner of the project that is consideredfor inclusion within the carbon scheme.He is in charge of installation of units,sustainability activities, and his ownmonitoring.

The CME (Carbon Managing Entity): theowner and manager of the carbonscheme. He is in charge of all carbon-related activities except the LPP

monitoring.- The standard business model of Microsol

regarding revenues collection: 70% for the Local Project Participant 30% for the Carbon Managing Entity

Microsol analysed cost-benefits to certify (i)lighting and (ii) renewable energy projects onthe carbon market.

(i) The calculations are based on a 15 000 solarlamps project such as the one in Bolivia:

There is no carbon certification modality thatwould reasonably allow a 15 000 units lightingprogram to certify its impacts on the carbonmarket. Volumes must be much higher than thebest opportunities identified in the Andean

region to be interesting for inclusion in thecarbon market. Alternatively, prices of carboncredits in the international market for suchprojects would need to be much higher.

(ii) The calculations are based on a 410 000households solar pannels project, divided intoclusters of 50 000 households, such as thecurrent bidding in Peru:

A multi-project approach like a PoA is anaverage investment for the CME and wouldresult in profits for the LPP. It is reasonable tothink that joining sufficient projects to reach abreakeven point at year 5 is feasible in theAndean region: the perspective of the Peruvianbid allows us to make this assumption.

To secure a more reasonable trend, it would beprobably necessary to secure higher prices forthe carbon credits.

The need for an innovative approach inthe valorization of access to energy services

There are two main strategies that could beimplemented for improving the carbon salesassumptions:

1) Improving the final price of the socialcarbon credits

2) Changing the nature of the certificationto certify and then value much better the socialimpacts than the carbon market does. Thesingularity of access-to-electricity and lighting

projects are not in favor of carbon marketcertification: even if these projects have highsocial impacts, they do not save as muchgreenhouse emissions as other technologiessuch as clean cook stoves.


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Resumen ejecutivo en espaol

Este informe proporciona un anlisis delpotencial para difundir programas carbono deeficiencia energtica en Amrica Latina,

centrndose en 5 pases andinos (Colombia,Ecuador, Per, Bolivia y Chile) y dos temasprincipales: el acceso a la electricidad y a lailuminacin para la gente que vive encondiciones de pobreza. El estudio fue dirigidopor Microsol y financiado por la FundacinRexel, desde junio del 2013 hasta mayo del2014. Los mtodos de investigacin incluyen: (i)y (ii) un anlisis del potencial de los proyectos(necesidades de la poblacin, las tecnologas

disponibles, criterios de xito del proyecto), (iii)un anlisis de carbono (criterios de elegibilidad,evaluacin de los intereses econmicos de losproyectos para entrar en el mercado decarbono) y (iv) una evaluacin de viabilidad enrelacin con el mercado de carbono paraproyectos de electricidad e iluminacin, (v) conrecomendaciones sobre las diferentes opciones.Los resultados de este estudio se basan enentrevistas a actores clave en los cinco pases

considerados (175 personas entrevistadas de 97instituciones), visitas de campo a diez proyectosde energas renovables y revisionesbibliogrficas. Las recomendaciones se hacen enbase a la experiencia y las previsiones deMicrosol.

Limitaciones

El anlisis realizado tiene sus limitaciones,incluidas las diferencias en las estadsticas deacuerdo con las fuentes. Las estadsticas que sepresentan aqu son las ms recientes y defuentes que se consideran como las ms fiables.Para las comparaciones internacionales, seutiliz, en la medida de lo posible, los datos de

agencias internacionales de estadsticas como laCEPAL. Adems, no existe una definicin clarade lo que significa "el acceso a la electricidad".Por ejemplo, en Colchane (Chile), cerca de lafrontera con Bolivia, la ciudad es consideradacomo electrificada, incluso si la gente tiene slo3 horas de luz al da.

El contexto de la electricidad y lailuminacin en los pases andinos

Aunque el rea de estudio es grande y muydiversa, se puede dividir en tres zonas biendiferenciadas y relativamente homogneas en

trminos de cultura y clima: la sierra, la costa yla selva tropical amaznica. Las actividadesculturales y productivas de estas tres reas sonvariadas, impactando en sus necesidades deenerga. Sin embargo, todos los hogaresdesconectados de la red elctrica comparten elmismo uso para la electricidad: los usos msgeneralizados de la electricidad para loshogares son la iluminacin, la radio (para lasnoticias locales, la msica y comunicacin) y

cargar los telfonos celulares . Para los centrosde salud, la electricidad es necesaria paramuchas actividades, incluso para almacenarvacunas y para realizar las actividades por lanoche (los partos por ejemplo). Para laeducacin, la electricidad es necesaria para eluso de herramientas pedaggicas modernas (ordenadores, videos, etc.) y para luchar contrala brecha tecnolgica entre los nios que vivenen zonas urbanas y rurales.

Para realizar estas actividades, las velas, elkerosene y las lmparas de diesel (tambinllamadas mecheros) as como las bateras norecargables son las soluciones ms frecuentes.Las pequeas empresas utilizan a veces las


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soluciones ms caras, como un generador dieselo bateras de auto.

Esta falta de acceso eficiente a la electricidad eiluminacin est limitando el desarrollo, no

permitiendo que mejore la educacin, la salud,la seguridad y la situacin econmica a nivel delos hogares y las comunidades. El medioambiente tambin se ve afectado a nivelinternacional a travs de las emisiones de gasesde efecto invernadero, que aumentan elcalentamiento global.

6,1 millones de personas que viven en zonasrurales en los cinco pases se encuentran enesta situacin, sin acceso adecuado a laelectricidad , aunque con grandes variacionesentre ellos. Bolivia tiene de lejos la tasa msbaja de electrificacin rural, aunque, si tenemosen cuenta la cantidad de personas que viven enzonas rurales sin acceso a la electricidad, el Pertiene el nmero ms alto, seguido de Bolivia yde cerca por Colombia. Chile casi ha completadosu proceso de electrificacin rural.

Soluciones eficientes de electrificacin eiluminacin

Relevancia de los sistemas descentralizadoselctricos y de iluminacin en los pases

andinos

Incluso si la extensin y densificacin de la redson las opciones preferidas de los gobiernospara la electrificacin, a veces no es lo msadecuado en las zonas rurales. Las solucionesdescentralizadas de generacin de electricidad,tales como fuentes de energa renovablepueden ser relevantes para la electricidad y lailuminacin si tienen un costo competitivo (en

comparacin con la extensin de redes) y sitcnica y jurdicamente son factibles, con lassiguientes observaciones:

1. Los pases andinos tienen una densidadde poblacin muy baja en comparacincon el resto del mundo, lo que reduce larelevancia de extender la red elctricanacional en reas remotas. Sinembargo, la situacin est lejos de serhomognea, con Bolivia que tienemenos de 10 habitantes por km 2 yEcuador, que tiene ms de 60habitantes por km 2 (como comparacin,la densidad de la poblacin de Franciallega a casi 100 habitantes por km2).

2. La dispersin de las casas es alta en loscinco pases ya que las comunidadesque necesitan de electrificacin songeneralmente las ms pequeas. Laactividad agrcola es una de las razonesde la extrema dispersin de las casas.

3. Las comunidades no electrificadas sonde difcil acceso en los cinco pases,debido a que se encuentrannormalmente en la selva o en las

COLOMBIA13% de los hogares rurales no tienenelectricidad (1,5 millones de poblacin rural)46% de las personas son pobres en reasrurales.

ECUADOR10% de los hogares rurales no tienen electricidad(0,5 millones de poblacin rural)39% de las personas son pobres en reas rurales.

PER36% de los hogares rurales no tienenelectricidad (2,4 millones de poblacin rural)50% de las personas son pobres en las reas

rurales.

BOLIVIA42% de los hogares rurales no tienenelectricidad (1,6 millones de poblacin rural)55% de las personas son pobres en las reasrurales.

CHILE6% de los hogares rurales no tienen electricidad(0,1 millones de poblacin rural)9% de las personas son pobres en las reas rurales.


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montaas, con slo unos pocos o sinningn camino para llegar a ellas.

4. La voluntad del gobierno para pagarpor la extensin de la red es muy

diferente en los cinco pases, afectandoel inters en los sistemas basados enenergas renovables. Por ejemplo, enBolivia, el gobierno est dispuesto apagar 950 por hogar para laampliacin de la red, mientras queChile puede invertir hasta 13 800 porhogar.

5. Las necesidades de iluminacin son uncaso especial: adems de la iluminacinen casas, los agricultoresfrecuentemente necesitan una solucinde iluminacin mvil para podertrabajar en el campo cuando no hay luzde da.

Eligiendo la tecnologa correcta

Elegir la solucin tecnolgica adecuada basada

en las energas renovables depende de ladisponibilidad de los recursos naturales, loshbitos culturales, los costos, las necesidades yel sistema de distribucin (centros energticos,mini-redes, sistemas individuales). Este estudiose centr en seis tecnologas: paneles solares,micro turbinas hidroelctricas, biodigestoresque generan electricidad, turbinas elicas ydispositivos de iluminacin independientes, conlas siguientes observaciones:

1. Los biodigestores que generanelectricidad no son adecuados para unasola familia (demasiado caro) y hay muyelectricidad a nivel comunitario, debidoa la carencia de insumos orgnicos.

2. Cuando las casas estn cerca unasde otras y cuando el agua se encuentradisponible durante todo el ao, lasmicroturbinas hidroelctricas tienden a serla tecnologa ms barata. Sin embargo,

estas dos condiciones especficas hacenque sea difcil de implementar esta solucina gran escala.

3. Las turbinas elicas no se utilizanmucho en los pases andinos. Laslimitaciones incluyen la falta de mapasdetallados del viento.

4. Los paneles solares trabajan casi en

todas las regiones de los pases andinosgracias a las altas radiaciones solares. Es delejos la solucin ms frecuente para laelectrificacin fuera de la red elctrica, a

pesar de sus mayores costos.

5. En Amrica Latina, slo seusan linternas solares comodispositivos autnomos de

iluminacin.

Creando un proyecto de energa exitoso

Despus de ms de una dcada de proyectos deenergas renovables para la electrificacin rural,las tecnologas son bien conocidas y las fallastcnicas son relativamente limitadas. Losmayores desafos para los proyectos de energarenovable son la necesidad de fomentar un

sentido de pertenencia y cuidado por losusuarios finales y los socios durante las cincoetapas del proyecto: (i) el diseo del proyectodebe permitir la creacin de (ii) un modeloadecuado de gestin, que definir (iii) elproceso de implementacin, (iv) las operacionesy (v) la sostenibilidad a largo plazo.


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Durante el diseo del proyecto es importantecrear las condiciones para la apropiacin localde los proyectos , a travs de una identificacinde las necesidades, la participacin de losusuarios finales y la implicacin de las partes

interesadas en todo el proceso de toma dedecisiones.

Elmodelo de gestin debe ser fijado durante eldiseo del proyecto: debe definirse quin es elresponsable de la instalacin, servicio ymantenimiento, y cmo sern cubiertos loscostos.

Ya existen muchos modelos de gestin que vandesde iniciativas totalmente privadas hasta losmodelos filantrpicos donde los beneficiarios nocubren ningn costo, incluidos los sistemas decooperativas, los comits de electricidadcomunitarios, etc. La eleccin del modelo degestin depende de la voluntad de pago de losactores, la organizacin de la comunidad, laimplicacin de los socios...

Como tercer paso, es necesaria la participacinde los usuarios y los socios durante la ejecucindel proyecto para su buena aceptacin tanto delproyecto como de su propia responsabilidad enel mismo.

Para garantizar la sostenibilidad del proyecto,las instalaciones deben ser utilizadas de unamanera adecuada. La capacitacin de losusuarios finales es lo ms importante: lacapacitacin debe ser comprensible y adaptadaa nivel colectivo e individual, las instrucciones

de uso deben ser explicadas varias veces avarios miembros de los hogares. Si es posible,los tcnicos locales deben recibir capacitacin,especialmente si la comunidad es muy remota.Por ejemplo: para proyectos de energa solar,los problemas ms comunes que se encuentranson el sobreuso de la batera: la falta de agua

destilada, su uso excesivo o su uso en los autos,reducen su vida til.

Incluso si los proyectos tienen xito en el cortoplazo, el xito a largo plazo no est garantizado:

los fondos suelen ser escasos para las visitas deseguimiento o para hacer frente a losproblemas de reciclaje .

La tercera seccin del informe estudia larelevancia de los mercados de carbono paraabordar los problemas que los proyectos deenergas renovables e iluminacin enfrentan.

Los mercados de carbonoLos mercados de carbono permiten una mejoracontinua, la certificacin de los impactos y elapoyo financiero a largo plazo para proyectosque reduzcan las emisiones de gases de efectoinvernadero.

Existen dos mecanismos principales para elmercado de carbono:

el mercado obligatorio , vinculado alProtocolo de Kyoto y las obligacioneslegales para reducir las emisiones,

el mercado voluntario de carbono.

Microsol trabaja principalmente con el mercadovoluntario: no slo el proceso de entrada en elmercado es ms corto (aproximadamente 2aos), sino tambin es posible generar msrecursos financieros en el mercado voluntario

que en el mercado obligatorio, debido a losprecios flexibles de los bonos de carbono.

El clculo de la reduccin de las emisiones decarbono se basa en una metodologa creada porun organismo de certificacin carbono (lasNaciones Unidas (UNFCCC) u otras normas de


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certificacin como el Gold Standard, VerifiedCarbon Standard, etc). Los ingresos generadospor los bonos de carbono dependen de lareduccin de las emisiones y de su precio,mientras que los costos dependern de los

requisitos de monitoreo. El monitoreo carbonoes diferente si las instalaciones estnconectadas a travs de una mini-red elctrica(varios hogares estn conectados a ungenerador de electricidad) o si las instalacionesestn dispersas (por ejemplo, cada hogar tienesu propio panel solar o su propia turbina deviento).

Metodologas carbono para proyectos deiluminacin y electricidad

Este estudio se enfoc en dos metodologascarbono:

- Para los proyectos de energarenovable: la metodologa GoldStandard, electrificacin a micro-escalay energizacin

- Para la iluminacin: la CMNUCC,AMS-III.AR, La sustitucin de lailuminacin en base a combustible consistemas de iluminacin LED / CFL

Se hicieron las siguientes observaciones:

Para energa renovable:

5,000

hogares

10,000

hogares Potencialesingresoscarbono

En el caso demini-redes: de 12 a 70kUSD porao

En el caso dedispositivosaislados: De 5 a 20kUSD porao

En el caso demini-redes: de 24 a 100kUSD porao

En el caso dedispositivosaislados: De 10 a 40kUSD porao

Los proyectos de generacin de electricidad apartir de energa renovable podran no serfciles de implementar en el mercado decarbono. Estos requieren un intenso trabajodurante el periodo de generacin de bonos quedepender de la tecnologa y del tipo deinstalacin. Sin embargo, si el tamao del

proyecto es suficientemente grande puede servalioso para el desarrollador de proyecto que suproyecto ingrese al mercado de carbono.

Para iluminacin:

Potencialesingresoscarbono

10 000lmparas

50 000lmparas

60-120 kUSD 300-600 kUSD

Es relativamente fcil integrar en el mercado decarbono la distribucin de los dispositivossolares para iluminacin. Adems, las lmparassolares son relativamente baratas (USD 15 USD 80). Los requisitos de monitoreo y loscriterios de elegibilidad no son muy estrictos.No obstante, los ingresos carbono no son muy


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altos, por lo que se requiere una considerablecantidad de linternas para lograr la rentabilidad.

Oportunidades del mercado de carbono en los pases andinos.

El mercado de carbono puede ser una buenaopcin si se cumplen dos condiciones:

- El mecanismo del carbono debe habersido considerado en el diseo delproyecto y debe ser necesario parareducir las emisiones de carbono. A estole llamamos adicionalidad o

consideracin previa.

- Los beneficios de las ventas de losbonos de carbono deben ser ms altosque los costos vinculados a lacertificacin del mercado de carbono.

La cantidad de bonos de carbono que se puedenobtener depende del tamao del proyecto y dela eficiencia de las instalaciones (por ejemplo, si

una linterna solar deja de funcionar o si deja deser utilizada por la familia, no generar ningunareduccin de emisin).

Nosotros estimamos que el proyecto que tieneel tamao mnimo requerido es el que alcanzasu punto de equilibrio despus de 8 aos en elmercado de carbono. En otras palabras,calculamos que el proyecto que cuenta con eltamao mnimo requerido es aquel que despus

de 8 aos en el mercado de carbono ha logradoque sus costos sean iguales a sus ingresos:

- 9 000 14 000 hogares electrificadoscon instalaciones a partir de energarenovable, considerando un total depotencia instalada de 1150 kW (sin

incluir la energa producida por losbiodigestores 3).

- 8 000 12 000 hogares de familias muypobres 4 electrificados con mini-red apartir de energa renovable (sin contar

biodigestores) que consumen cada una500 Wh/da, o 2000-3000 familias conuna ligera mejora de sus condiciones devida (consumo por hogar de 2kWh/da).

- 900 - 1 300 escuelas electrificadas conmini-red a partir de energa renovable(sin contar biodigestores).

- 1 200 - 1 800 centros de saludelectrificados con mini-red a partir deenerga renovable (sin contarbiodigestores).

- 13 000 - 19 000 linternas (una familiapuede tener varias linternas).

La siguiente seccin contiene recomendacionessobre la cantidad mnima de instalaciones quese necesita para generar considerablesbeneficios con el mercado de carbono.

3 Debera usarse otra metodologa para calcular lareduccin de emisiones de los biodigestores: este estudiono detalla esta metodologa debido a la falta de proyectosde biodigestores para la generacin de electricidad en lospases andinos.

4 Situacin de los beneficiarios ms pobres que poseen lomnimo (lmparas y radio, por ejemplo, pero noventiladores, ni refrigeradoras).


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ao. Sin embargo, existe un riesgo de que estalicitacin falle.

El grfico de abajo resume el anlisis deMicrosol sobre la relevancia de integrar este

proyecto al Mercado de carbono:

2. En Bolivia, elBanco Interamericano deDesarrollo est financiando unproyecto de linternas solares (Modelode focos, 80$), que ser implementadopor la ONG Energtica. 10 000 focosdeben ser distribuidos en la primeraetapa y 5000 ms si el piloto es exitoso.

El proyecto ser implementado en el segundosemestre del 2014, por 5 aos.

Este proyecto es suficientemente grande para

generar ingresos que compensen los costosasociados a la integracin al mercado decarbono. Sin embargo, las ganancias netas sonlimitadas: podra ser una buena oportunidad siel mercado de las linternas solares creciera enBolivia, lo que es probable que suceda ya quemuchos actores promueven esta tecnologa.

Adems, los actores clave como Energtica yaestn familiarizados con el proceso del mercadode carbono y la metodologa carbono para laslinternas solares es relativamente fcil deimplementar. No obstante, antes de integrar

este proyecto en el mercado de carbono,primero sera necesario obtener el apoyo delgobierno acerca de la relevancia del mercado decarbono en las orientaciones polticasnacionales.

El siguiente grfico resume el anlisis deMicrosol con respecto a la relevancia de integrareste proyecto en el mercado de carbono:

Conclusiones y recomendaciones

Anlisis costo-beneficio: encontrar el equilibrioentre la escala y la viabilidad econmica

Microsol realiz un anlisis costo-beneficio de laelectrificacin renovable y alumbrado con el finde encontrar el equilibrio entre la escala y laviabilidad econmica en el mercado de carbono.

Todos los anlisis econmicos estn basados en:


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Rexel Foundation & Microsol study: Final report May 2014 28

Introduction and methodology

Energy access is central to fight poverty and achieve a sustainable development: None of theMillennium Development Goals (MDGs) can be met without major improvement in the quality andquantity of energy services in developing countries according to the United Nations. Energy isnecessary to cook, to get heat, electricity, lighting This study focuses only on electricity, for lightingand other uses.

If the African and Asian continents concentrate themajority of people without electricity access, there are stillmany households without an efficient electricity and

lighting access in Latin America, and with specificsituations due to the geographical context and lowpopulation densities. This study focuses on five Andeancountries: Colombia, Ecuador, Peru, Bolivia and Chile,which accounts for 6.1 million rural households withoutelectricity access.

Inefficient electricity and lighting access not only limitdevelopment, but also have an impact on environmentand climate change because of the associated high

greenhouse gas emissions. Replacing polluting traditionalelectricity and lighting solutions by efficient ones reducethus greenhouses gas emissions: this reduction can bevalued by carbon credits, resulting in international fundingthrough carbon offsetting.

Methodology

The Rexel Foundation financed this study related to the feasibility of developing carbon

schemes for energy efficiency projects in the Andean area. This study was led by Microsol from June2013 to January 2014 in order to analyze two main issues in 5 Andean countries:

1. Understand how to boost the access of disadvantaged people to efficient equipment thatuse renewable energy , thanks to the voluntary carbon credit scheme.

2. Assess the relevance of the carbon mechanism to accelerate the development ofecoefficient lighting solutions for disadvantaged people.


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Analysing the feasibility of carbon schemes for renewable energies and lighting implied to:

1. Know the past, existing and future projects with renewable energy and lighting for thepoorest.

To do so, we studied the needs of the population and the legal frame through a close countriesanalysis, the available solutions through a review of the existing technologies, taking into accountboth technical and social aspects of the project.

The analysis of potential will be presented in the sections 1 and 2 .

2. Analyse the carbon market characteristics andthe available methodologies

To do so, we assessed the costs and benefits related tothe integration of projects in the carbon market,highlighting eligible projects.

The carbon analysis will be presented in section3.

3. Assess the feasibility of the creation of aProgram of Activities in the voluntary carbonmarket and other options.

To do so, we will present our recommendations on the different options, highlighting the optionswith the highest social and environmental impact.

The feasibility assessment will be presented in the last section (section 4).

Key figures:5 countries

175 interviewed people, from 97institutions

Presentation of the study in 3 nationaland international conferences (more

than 200 attendees in total)10 projects visited

Renewable energies for electricity:

Solar, Hydro, Wind, Biomass

Lighting:For households, health centers,

schools, community buildings, etc.


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The study was led with the following chronogram:

Carbon analysis Analysis of potential Feasibility assessment Results presentation

Mid-May to June July to November December - January End of January


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The report will provide answers to the following questions, each block corresponding to one section:


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I. Electricity and lighting context in the Andean countries

In this section, we will introduce the electricity and lighting context in the Andean countries andpresent the issue this study is dealing with.

We will focus on the current context for people not connected to the national grid, to understand:

(i) the traditional solutions they are using to get lighting and electricity access,

(ii) what are they using these solutions for,

(iii) how many people, health centers and schools are lacking proper electricity orlighting access

(iv) and the impacts of this situation on development issues and living conditions.


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I.1 Electricity and lighting needs

I.1.1 Traditional solutions for electricity and lighting access

I.1.1.1 Getting to know the area to understand people needs

To understand the needs of ruralcommunities in Latin America, it isnecessary to first introduce the waythey live and what are their mainactivities.

The five countries of the study can bedivided into 3 different areas, relativelyhomogeneous in cultural and climateaspects: the Highlands (in brown ), theCoast (in beige : Pacific Coast) and theAmazon rainforest (in green )5.

Living in the highlands countryside :

The highlands in Peru, Ecuador, Bolivia and Chile are inhabited mostly by aymara and quechuapeople (the Andean mountains are also present in Colombia, but with big cities and relatively fewrural areas).The highest peaks of the Andes reach 7000 meters above the sea level but peoplegenerally live at an altitude of 2000 meters above the sea level to 5000 meters. The climate ischaracterized by two seasons: a dry season from May to November approximately and a wet seasonfrom December to April.

5 Details related to the specific situation of each country can be found in the Annex.The division into threeareas is quite simplistic but gives and overview of the extremely diverse natural ecosystems and cultural habits.

The Andean rural region is by farthe most populated of these 3regions: it is estimated that about65 % of Perus rural populationlive in the Andean regions, whileabout 20 % live in the Amazon and15 % in the Coastal regions (2010,World Bank .


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For those living in the countryside, Quechua and Aymarapeople activities include:

- Animals breeding (llamas, alpacas, chickens, pigs,cows, donkeys, guinea pigs, goats although notvery common). Llamas and alpacas are to be foundonly in the highest parts of the area (more than3000 meters above the sea level).

- Crops (potatoes, quinoa, corn, etc).- Handicrafts and wool (spinning and weaving).

People often have two houses. One is relatively close tothe city or to a populated center ( centro poblado) , the

other is in the country side, close to crops and pastures.People usually sleep in the second house when they needto pastor their animals, with a few or no facilities.

Living in the Amazon rainforest countryside

Among the five countries of this study, only Chile does nothave an Amazon forest area. The Amazon rainforestpopulation can be divided into two main groups:indigenous groups and the others (western people, latino,Afro-descendants). One million Indians live in the Amazonrainforest, divided into 400 tribes, each with its ownlanguage, culture and territory 6. The climate is tropical, inother words it is hot and humid with few variations duringthe year.

In the Amazon rainforest countryside, human activitiesinclude:

- Animals breeding (cows, chicken, etc.)

- Crops (vegetables and fruits like manioc, corn,beans and bananas, cacao, coffee, palm trees).

- Fishing- Handicrafts

6Many tribes have been in contact with outsiders for almost 500 years but others remain uncontacted. See thework of the international NGO Survival: http://www.survivalinternational.org/about/amazontribes

In Peru, one alpaca wool kilo canbe sold from 40 NS (10 euros) upto 250 NS (65 euros) depending onthe wool quality. One alpaca

produces approximately one kiloof wool per year. The wool iscolored naturally, with plants. It isan important source of incomes

for the communities living in thehighest part on the Andes, wheregrowing vegetables is difficult.

In San Juan de Abiseo, Peru,cultivating coca is very profitable:

peasants growing coca earn abouttwice as much as they wouldgrowing cacao or coffee.Nevertheless many coca farmerswere incarcerated in the late 90s ,

fostering legal crops

development.
http://www.survivalinternational.org/about/amazontribeshttp://www.survivalinternational.org/about/amazontribeshttp://www.survivalinternational.org/about/amazontribes


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Due to the difficulty to control this territory (large area with only a few roads), illegal activities suchas coca crops for coca paste production and mining are performed 7.

Livingin the Coast countryside

Chile, Peru, Ecuador and Colombia cover all the Pacific coastof South America8. Colombia is the only South Americancountry having access both to the Pacific and Atlantic Ocean.

This area is very diverse, both at a human and climate pointof view. Ecuador and Colombian coast have a stronginfluence of Afro descendants while this is not the case inPeru and Chile. The climate varies from a desert coast in

Peru and part of Chile to tropical coast in Ecuador andColombia. As a consequence, human activities are verydifferent, even if fishing is a common activity all along theCoast and in the islands.

I.1.1.2 Electricity and lighting for off-grid people: uses and traditional solutions

The most widespread use of electricity for households are:

1. Lighting (for the house and to move outside).2. Radio : for local news, music and communication (in

the most remote places, there is no cellphone signal.Radio is then used as a communication mean 9).

3. Charging cellphones .

When incomes increase and when there is electricity, people tend to buy TV and to a lesser extent,

devices such as blenders or electronic irons10

. In tropical areas, fans and fridges are also common.

7In Bolivia,coca production is legal in 12,000 hectares as a cultural patrimony , but forbidden for coca pasteproduction. (Article 384, Fourth Part, Title II, Chapter Seven, Nueva Constitucin Poltica del Estado,(p. 89)).

8 Bolivia lost its coast to Chile during the War of the Pacific, at the beginning of the XXth century.

9During a field visit in Bolivia, the NGO Energtica made an announcement on the local radio to organize ameeting with people from the community (the announcement was released 4 times for two euros).

10A survey led by the World Bank in 2005 and 2006, interviewing almost 7000 rural households in severalPeruvian regions, found out that r adios are by far the most common type of household electric appliance,

Fishing lobsters and shrimps is acommon activity for fishermen ofIsla Fuerte, Colombia.

In Bolivia, 70% of rural householdshave a radio (national census, 2012)and 30% have a TV and/or a phone.
http://www.presidencia.gob.bo/download/constitucion.pdfhttp://en.wikipedia.org/wiki/War_of_the_Pacifichttp://en.wikipedia.org/wiki/War_of_the_Pacifichttp://www.presidencia.gob.bo/download/constitucion.pdf


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Traditional energy source for off-grid households:

To perform these activities, candles, kerosene and diesel lamps

(also called wick lamp) as well as non-rechargeable batteriesare the most frequent solutions. Small businesses sometimesuse more expensive solutions such as diesel generator or carbatteries.

Some rural households have solar panels as well, bought ontheir own initiative or through a NGO or governmental project(in Bolivia, 3% of rural households have a solar panel11).

Traditional sources of energy and their uses

Traditional source of energy Uses Users Frequency

Candles Lighting Every off-grid households Daily

Non-rechargeable batteries Radio, flashlights Every off-grid households Daily

Kerosene and diesel wick lamps Lighting Majority off-grid households Daily

Human and animal energy Productive uses Every off-grid householdsSeveral timesa week

Car batteries Productive uses Small businessesSeveral timesa week

Diesel generatorProductive usesand others

Small businesses, healthcenters, community scale

Daily orseveral times

a week

with 66 percent of electrified households owning one or more, followed by black-and-white televisions (37percent of households), color televisions (33 percent), and electric irons (25 percent). Appliance ownershipvariations by region are in line with regional income disparities (see MEIER Peter, TUNTIVATE Voravate,BARNES Douglasand al,Peru: National Survey of Rural Household Energy Use - Special Report, Washington: TheWorld Bank Group, Energy Sector Management Assistance Program, 2010, pxix).

11National Institute of Statistics, National Households Survey, 2012 (http://www.censosbolivia.bo/ ).

In some areas, kerosene is forbidden for being an ingredient for cocaine paste production (inPeru, the use of kerosene is forbidden since 2010). A kerosenewick lamp or a candle provides just 11 lumens (lm), comparedwith 1,300 lm from a 100 Wincandescent light bulb (Practical Action, 2010).

A wick lamp
http://www.censosbolivia.bo/http://www.censosbolivia.bo/http://www.censosbolivia.bo/http://www.censosbolivia.bo/


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I.1.2 Needs for efficient lighting and electricity access in rural areas

Since this study focus on electricity and lighting access through renewable energies, the followingdata will describe the national profiles in rural areas 12. Grid extension or grid densification are indeedthe preferred option for urban areas 13.

12 The statistics dealing with rural electrification come from CEPAL Stats (2011)(http://interwp.cepal.org/sisgen/ConsultaIntegrada.asp?idIndicador=260&idioma=e ), except for Bolivia(National Institute of Statistics, National Households Survey, 2012(http://www.censosbolivia.bo/ )).

13See National electrification maps: V.2 Regional electrification maps: comparison of the number of ruralhouseholds lacking electricity access

There is no clear definition ofwhat access to electricity

means. For example, inColchane (Chile), close to the

Bolivian border, the city isconsidered as electrified. But

people have only 3 hours a dayof light, preventing them from

developing productive activitiesduring the day.

Percentage of households and number of people without electricity access

The opposite map shows thatBolivia has by far the lowestrural electricity rate.

Nonetheless, in terms of needs,Peru has by far the highestnumber of rural people withoutelectricity access, followed byBolivia and closely by Colombia.

Chile almost completed its rural

electrification process.

COLOMBIA 13 % of rural households withoutelectricity (1,5 million rural people)46% of people are poor in rural areas

ECUADOR 10 % of rural households withoutelectricity (0,5 million rural people) 39% of people are poor in rural areas

PERU 36 % of rural households withoutelectricity (2,4 million rural people)50% of people are poor in rural areas

BOLIVIA 42 % of rural households withoutelectricity (1,6 million rural people)55% of people are poor in rural areas

CHILE 6 % of rural households withoutelectricity (0,1 million rural people)9% of people are poor in rural areas
http://interwp.cepal.org/sisgen/ConsultaIntegrada.asp?idIndicador=260&idioma=ehttp://interwp.cepal.org/sisgen/ConsultaIntegrada.asp?idIndicador=260&idioma=ehttp://interwp.cepal.org/sisgen/ConsultaIntegrada.asp?idIndicador=260&idioma=ehttp://www.censosbolivia.bo/http://www.censosbolivia.bo/http://www.censosbolivia.bo/http://www.censosbolivia.bo/http://interwp.cepal.org/sisgen/ConsultaIntegrada.asp?idIndicador=260&idioma=e


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The comparison of rural households between the 5 countries confirms the following ranking in term

of electricity and lighting14

needs15

:

(It would have been interesting to know as well the number of community buildings andhealth centers lacking electricity and lighting, but this data was not available).

Needs ranking (starting from the neediest country, in volume):

1. Peru2. Bolivia3. Colombia4. Ecuador5. Chile

Beyond number and statistics, the following paragraph will present the impacts of the lack ofefficient electricity and lighting access.

14The number of people without efficient electricity access is approximately the same as the number of peoplewithout efficient lighting access, since lighting stand-alone devices are not widespread is the region.

15The difference of households numbers between Peru and Bolivia is lesser than the d ifference in the numberof rural people, because households average size is higher in Peru (we considered the average size of ruralhouseholds from the second poorest quintile). Statistics concerning the number of schools without electricityaccess originate from the Organization of Ibero-American State (OEI) and its program of electrification Lightsto Lear (Luces para Aprender, see http://lucesparaaprender.org/web/ ). The number of schools withoutelectricity is surprisingly low for Bolivia, especially considering that 20,000 public establishments (health posts,schools, etc.) are not appropriately supplied with power according to the EnDev project impact evaluation(2005-2010, see http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38280318 ).
http://lucesparaaprender.org/web/http://lucesparaaprender.org/web/http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38280318http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38280318http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38280318http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=38280318http://lucesparaaprender.org/web/


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I.2 What is at stake?

As the United Nations Organization states, energyis central to achieve a sustainable development:None of the Millennium Development Goals(MDGs) can be met without major improvement inthe quality and quantity of energy services indeveloping countries 16.

Efficient electricity and lighting access are criticalto improve education, health, security and

economic situation at households and community level. Environment is also impacted at aninternational level through increased greenhouse gas emission and impacts on climate change.

Electricity access may entail the development of services such as lighting, cooling, information and

communication, or economic activities, providing new services, reducing the costs of these services(compared to no-efficient energy sources) or improving the reliability of electricity access.

16Seehttp://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainable-energy.html

* Electricity can foster other services such as cooking or heating: nevertheless, it is uncommon in ruralcommunities of Andean countries to use renewable electricity for such services. That is why these aspects willnot be deepened in this report.

With the exception of Southern Chile,daylight runs approximately from 6am until6pm all year long in the Andean countries.Without modern lighting, the possibilities todevelop economical, educational or socialactivities a ter 6 m are then reduced.
http://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainable-energy.htmlhttp://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainable-energy.htmlhttp://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainable-energy.htmlhttp://www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainable-energy.html


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The impacts of electricity access are diverse and address 5 pillars of sustainable development(indirect impacts are more numerous but will not be reported in details in this report):

ELECTRICITY ACCESS& HEALTH: lighting, cooling,information and communication

Diseases diminution:

Indoor pollution diminution: decrease ofpulmonary and eyes infections 17.

Sufficient lighting intensity: decrease ofvision loss. The GIZ recommends300

lumens18

as a minimum illumination levelper household (Bazilian et al., 2010). Thiscan be achieved neither by candles norkerosene wick lamps.

Improved lighting reduces hunger by increasingthe productive time that people can work andby reducing the money spent on effectivelighting (Practical Action, 2010).

Improvement of health services:

Medical attention improvement: hot water,fridges (for vaccines conservation for example),etc.

Extended

potencialidad de la zona andina para acceder al mercado de carbono completo

Documents