Werner Bergholz
BREMEN – An estimated 1.2
billion people worldwide, including 550 million in Africa and 400 million in India,
have no access to electricity. Most live in rural
areas where the population is sparse and incomes are low, making it
uneconomical to connect homes and businesses to a grid. Nor is it feasible to
generate power locally with a diesel unit, owing to high fuel costs and the
need for substantial initial investment.
A stable supply of
affordable electricity is a prerequisite for economic development. In fact, the
consequences for people living without electricity can be dire: they may be
deprived of adequate health care, or be unable to store fresh food. But one
solution, based on the local use of renewable energy, requires minimal initial
investment and can be expanded over time.
This “boot-strap”
approach is based on the use of photovoltaics – a simple, universal, and
scalable technology that is easy to maintain. Typically, in the first stage of
this process, consumers would use a renewable energy source such as LED
lighting, selling any surplus until they save enough money to buy lamp oil (on
which Africans spend around $20 billion annually).
The additional revenue might
initially come from selling small electricity surpluses to local farmers to
recharge their mobile phones (thereby allowing them to work out the optimal
prices for their crops), or to help them irrigate farmland using small electric
pumps.
This is a new opportunity. Until three or four years ago, photovoltaics
were prohibitively expensive. But advances in the industry and over-production
have reduced their price by as much as 75%. The cheapest system, generating two
watts of power, can cost as little as $10-20 and be expanded to almost any
level, depending on the size and number of photovoltaic (PV) modules and the
size of the battery storage unit.
It is simple, too. A residential solar-power system consists of just
three components: the PV modules, a battery storage unit, and a charge
controller. Such a system can supply low-voltage DC electric power at five
volts for mobile phones, and 12V for LED lighting, pumps for outdoor use, and
electrical appliances such as computers and televisions.
single-phase or
three-phase 230V AC power is needed (say, to power larger machines), an
inverter must be used. This makes sense only for systems that are larger than a
kilowatt of peak power and that have sufficient battery capacity. Local systems
in one building could be connected to local low-voltage DC or 230V AC grids to
improve the security of supply.
One major challenge to
the boot-strap approach is developing cheap and durable batteries. Many
residential systems break down after 3-5 years when the battery dies,
undermining confidence in the system among owners who assumed that they had a
lifetime supply of energy. But it is not a complicated process to demonstrate
how to extend a battery’s life to as much as ten years. Indeed, getting the
most out of a battery may require only that its owner fully charges it at least
once every two weeks and never discharges it to less than 50% capacity.
In addition, our own
research team is currently exploring ways to rejuvenate old solar or car
batteries – without requiring any chemical treatment or disassembly – for
re-use in a residential solar-power system.
Once such technologies
have been perfected, we can turn our attention to developing a boot-strap
business model. We believe that existing distribution, sales, and maintenance
networks for other goods and services could be adapted to supply and provide
customer support for solar-power systems as well. For example, bicycle
mechanics, who are plentiful in Africa and rural India, or small shop and kiosk
owners could be trained to install and maintain these systems.
The combination of
low-investment electricity generation for households and the ability to sell
surpluses, scale up output, and access pre-existing distribution and
maintenance networks bridges a crucial gap in the energy market. It is a simple
idea that would allow millions of people in poor, rural areas worldwide to
integrate their activities with the wider economy, accumulate capital, and
improve their lives.
BREMEN – An estimated 1.2 billion people worldwide, including 550 million in Africa and 400 million in India, have no access to electricity.
Most live in rural areas where the population is sparse and incomes are
low, making it uneconomical to connect homes and businesses to a grid.
Nor is it feasible to generate power locally with a diesel unit, owing
to high fuel costs and the need for substantial initial investment.
CommentsView/Create comment on this paragraphA
stable supply of affordable electricity is a prerequisite for economic
development. In fact, the consequences for people living without
electricity can be dire: they may be deprived of adequate health care,
or be unable to store fresh food. But one solution, based on the local
use of renewable energy, requires minimal initial investment and can be
expanded over time.
CommentsView/Create comment on this paragraphThis
“boot-strap” approach is based on the use of photovoltaics – a simple,
universal, and scalable technology that is easy to maintain. Typically,
in the first stage of this process, consumers would use a renewable
energy source such as LED lighting, selling any surplus until they save
enough money to buy lamp oil (on which Africans spend around $20 billion
annually).
CommentsView/Create comment on this paragraphThe
additional revenue might initially come from selling small electricity
surpluses to local farmers to recharge their mobile phones (thereby
allowing them to work out the optimal prices for their crops), or to
help them irrigate farmland using small electric pumps.
CommentsView/Create comment on this paragraphThis
is a new opportunity. Until three or four years ago, photovoltaics were
prohibitively expensive. But advances in the industry and
over-production have reduced their price by as much as 75%. The cheapest
system, generating two watts of power, can cost as little as $10-20 and
be expanded to almost any level, depending on the size and number of
photovoltaic (PV) modules and the size of the battery storage unit.
CommentsView/Create comment on this paragraphIt
is simple, too. A residential solar-power system consists of just three
components: the PV modules, a battery storage unit, and a charge
controller. Such a system can supply low-voltage DC electric power at
five volts for mobile phones, and 12V for LED lighting, pumps for
outdoor use, and electrical appliances such as computers and
televisions.
CommentsView/Create comment on this paragraphWhen
single-phase or three-phase 230V AC power is needed (say, to power
larger machines), an inverter must be used. This makes sense only for
systems that are larger than a kilowatt of peak power and that have
sufficient battery capacity. Local systems in one building could be
connected to local low-voltage DC or 230V AC grids to improve the
security of supply.
CommentsView/Create comment on this paragraphOne
major challenge to the boot-strap approach is developing cheap and
durable batteries. Many residential systems break down after 3-5 years
when the battery dies, undermining confidence in the system among owners
who assumed that they had a lifetime supply of energy. But it is not a
complicated process to demonstrate how to extend a battery’s life to as
much as ten years. Indeed, getting the most out of a battery may require
only that its owner fully charges it at least once every two weeks and
never discharges it to less than 50% capacity.
CommentsView/Create comment on this paragraphIn
addition, our own research team is currently exploring ways to
rejuvenate old solar or car batteries – without requiring any chemical
treatment or disassembly – for re-use in a residential solar-power
system.
CommentsView/Create comment on this paragraphOnce
such technologies have been perfected, we can turn our attention to
developing a boot-strap business model. We believe that existing
distribution, sales, and maintenance networks for other goods and
services could be adapted to supply and provide customer support for
solar-power systems as well. For example, bicycle mechanics, who are
plentiful in Africa and rural India, or small shop and kiosk owners
could be trained to install and maintain these systems.
CommentsView/Create comment on this paragraphThe
combination of low-investment electricity generation for households and
the ability to sell surpluses, scale up output, and access pre-existing
distribution and maintenance networks bridges a crucial gap in the
energy market. It is a simple idea that would allow millions of people
in poor, rural areas worldwide to integrate their activities with the
wider economy, accumulate capital, and improve their lives.
Read more at http://www.project-syndicate.org/commentary/werner-bergholz-proposes-a-boot-strap-model-for-developing-countries--energy-sectors#6zwtoi1heRYpRegk.99
Werner Bergholz
BREMEN – An estimated 1.2
billion people worldwide, including 550 million in Africa and 400 million in India,
have no access to electricity. Most live in rural
areas where the population is sparse and incomes are low, making it
uneconomical to connect homes and businesses to a grid. Nor is it feasible to
generate power locally with a diesel unit, owing to high fuel costs and the
need for substantial initial investment.
A stable supply of
affordable electricity is a prerequisite for economic development. In fact, the
consequences for people living without electricity can be dire: they may be
deprived of adequate health care, or be unable to store fresh food. But one
solution, based on the local use of renewable energy, requires minimal initial
investment and can be expanded over time.
This “boot-strap”
approach is based on the use of photovoltaics – a simple, universal, and
scalable technology that is easy to maintain. Typically, in the first stage of
this process, consumers would use a renewable energy source such as LED
lighting, selling any surplus until they save enough money to buy lamp oil (on
which Africans spend around $20 billion annually).
The additional revenue might
initially come from selling small electricity surpluses to local farmers to
recharge their mobile phones (thereby allowing them to work out the optimal
prices for their crops), or to help them irrigate farmland using small electric
pumps.
This is a new opportunity. Until three or four years ago, photovoltaics
were prohibitively expensive. But advances in the industry and over-production
have reduced their price by as much as 75%. The cheapest system, generating two
watts of power, can cost as little as $10-20 and be expanded to almost any
level, depending on the size and number of photovoltaic (PV) modules and the
size of the battery storage unit.
It is simple, too. A residential solar-power system consists of just
three components: the PV modules, a battery storage unit, and a charge
controller. Such a system can supply low-voltage DC electric power at five
volts for mobile phones, and 12V for LED lighting, pumps for outdoor use, and
electrical appliances such as computers and televisions.
single-phase or
three-phase 230V AC power is needed (say, to power larger machines), an
inverter must be used. This makes sense only for systems that are larger than a
kilowatt of peak power and that have sufficient battery capacity. Local systems
in one building could be connected to local low-voltage DC or 230V AC grids to
improve the security of supply.
One major challenge to
the boot-strap approach is developing cheap and durable batteries. Many
residential systems break down after 3-5 years when the battery dies,
undermining confidence in the system among owners who assumed that they had a
lifetime supply of energy. But it is not a complicated process to demonstrate
how to extend a battery’s life to as much as ten years. Indeed, getting the
most out of a battery may require only that its owner fully charges it at least
once every two weeks and never discharges it to less than 50% capacity.
In addition, our own
research team is currently exploring ways to rejuvenate old solar or car
batteries – without requiring any chemical treatment or disassembly – for
re-use in a residential solar-power system.
Once such technologies
have been perfected, we can turn our attention to developing a boot-strap
business model. We believe that existing distribution, sales, and maintenance
networks for other goods and services could be adapted to supply and provide
customer support for solar-power systems as well. For example, bicycle
mechanics, who are plentiful in Africa and rural India, or small shop and kiosk
owners could be trained to install and maintain these systems.
The combination of
low-investment electricity generation for households and the ability to sell
surpluses, scale up output, and access pre-existing distribution and
maintenance networks bridges a crucial gap in the energy market. It is a simple
idea that would allow millions of people in poor, rural areas worldwide to
integrate their activities with the wider economy, accumulate capital, and
improve their lives.
BREMEN – An estimated 1.2 billion people worldwide, including 550 million in Africa and 400 million in India, have no access to electricity.
Most live in rural areas where the population is sparse and incomes are
low, making it uneconomical to connect homes and businesses to a grid.
Nor is it feasible to generate power locally with a diesel unit, owing
to high fuel costs and the need for substantial initial investment.
CommentsView/Create comment on this paragraphA
stable supply of affordable electricity is a prerequisite for economic
development. In fact, the consequences for people living without
electricity can be dire: they may be deprived of adequate health care,
or be unable to store fresh food. But one solution, based on the local
use of renewable energy, requires minimal initial investment and can be
expanded over time.
CommentsView/Create comment on this paragraphThis
“boot-strap” approach is based on the use of photovoltaics – a simple,
universal, and scalable technology that is easy to maintain. Typically,
in the first stage of this process, consumers would use a renewable
energy source such as LED lighting, selling any surplus until they save
enough money to buy lamp oil (on which Africans spend around $20 billion
annually).
CommentsView/Create comment on this paragraphThe
additional revenue might initially come from selling small electricity
surpluses to local farmers to recharge their mobile phones (thereby
allowing them to work out the optimal prices for their crops), or to
help them irrigate farmland using small electric pumps.
CommentsView/Create comment on this paragraphThis
is a new opportunity. Until three or four years ago, photovoltaics were
prohibitively expensive. But advances in the industry and
over-production have reduced their price by as much as 75%. The cheapest
system, generating two watts of power, can cost as little as $10-20 and
be expanded to almost any level, depending on the size and number of
photovoltaic (PV) modules and the size of the battery storage unit.
CommentsView/Create comment on this paragraphIt
is simple, too. A residential solar-power system consists of just three
components: the PV modules, a battery storage unit, and a charge
controller. Such a system can supply low-voltage DC electric power at
five volts for mobile phones, and 12V for LED lighting, pumps for
outdoor use, and electrical appliances such as computers and
televisions.
CommentsView/Create comment on this paragraphWhen
single-phase or three-phase 230V AC power is needed (say, to power
larger machines), an inverter must be used. This makes sense only for
systems that are larger than a kilowatt of peak power and that have
sufficient battery capacity. Local systems in one building could be
connected to local low-voltage DC or 230V AC grids to improve the
security of supply.
CommentsView/Create comment on this paragraphOne
major challenge to the boot-strap approach is developing cheap and
durable batteries. Many residential systems break down after 3-5 years
when the battery dies, undermining confidence in the system among owners
who assumed that they had a lifetime supply of energy. But it is not a
complicated process to demonstrate how to extend a battery’s life to as
much as ten years. Indeed, getting the most out of a battery may require
only that its owner fully charges it at least once every two weeks and
never discharges it to less than 50% capacity.
CommentsView/Create comment on this paragraphIn
addition, our own research team is currently exploring ways to
rejuvenate old solar or car batteries – without requiring any chemical
treatment or disassembly – for re-use in a residential solar-power
system.
CommentsView/Create comment on this paragraphOnce
such technologies have been perfected, we can turn our attention to
developing a boot-strap business model. We believe that existing
distribution, sales, and maintenance networks for other goods and
services could be adapted to supply and provide customer support for
solar-power systems as well. For example, bicycle mechanics, who are
plentiful in Africa and rural India, or small shop and kiosk owners
could be trained to install and maintain these systems.
CommentsView/Create comment on this paragraphThe
combination of low-investment electricity generation for households and
the ability to sell surpluses, scale up output, and access pre-existing
distribution and maintenance networks bridges a crucial gap in the
energy market. It is a simple idea that would allow millions of people
in poor, rural areas worldwide to integrate their activities with the
wider economy, accumulate capital, and improve their lives.
Read more at http://www.project-syndicate.org/commentary/werner-bergholz-proposes-a-boot-strap-model-for-developing-countries--energy-sectors#6zwtoi1heRYpRegk.99
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