MICRO POWER ECONOMY IN THE PHILIPPINES

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2/16 WIND-SOLAR-DIESEL HYBRID SYSTEM WITH BATTERY Foto: ENERSA power station; Senegal

3/16 COMPONENT 1: CONSTELLATION OF STAKEHOLDERS Regulatory Authority Electrification Authority Donor Organisation National grid operator Subsidies used to set-up the Mini-Grid Micro-Finance Institution Rural Citizen Investor Power Station Operator owns movable assets Contract Village Power Committee owns fixed assets Local Electrician

4/16 COMPONENT 2: TARIFFS AND BILLING Electricity block: max. power 50 W; weekly energy 2 kwh for 0.90 Power Extra Power 0.7 /kwh Extra Energy 0.7 /kwh combined electricity blocks Time

5/16 COMPONENT 2: TARIFFS AND BILLING Σ kwh Electr. user 1 Electr. user 2 Electricity blocks ordered after 6 months = Electr. user 3 Electr. user 4 Electr. user 5 To be made available by power station operator New blocks Number of electricity blocks ordered can be increased or decreased every six months Electricity blocks can be traded between rural citizens

6/16 EXPLAINING THE ELECTRICITY BLOCK SCHEME

7/16 COMPONENT 3: THE MICRO UTILITY SOLUTION _ The Micro Power Smart Meter _ The Micro Grid Control and Accounting Centre

8/16

9/16 PALAWAN Palawan Map: NordNordWest

10/16 LEGAL FRAMEWORK _ Electric Cooperatives can assign villages to be supplied with electricity by Qualified Third Parties _ Qualified Third Parties can apply for electricity supply license with ERC _ UC-ME subsidy to buy down the kwh price for end customers available and can be negotiated with ERC tariffs need to be checked by ERC _ MPE metering technology and block model are in the process of being accredited by ERC

11/16 VILLAGES SOUGHT AND FOUND _ High density of population (>1500 inhabitants per m 2 ) _ Village population of 3,000 to 10,000 people _ Electric Cooperative willing to open the village for Qualified Third Party electrification _ Track record of positive economic development in the village _ Working social and political structure within the community (family structure, democratic structure, etc.)

12/16 CURRENT ELECTRICITY SUPPLY SITUATION AND SPLIT OF ASSETS

13/16 LONG BANCA RIDES TO CITY DIFFICULT MONEY TRANSPORT

14/16 WOMEN LIKE THE IDEA OF ELECTRICITY EXPENDITURE BUDGETING

15/16 CONCLUSIONS _ Supplying electricity in the Philippines is highly burocratic and involves considerable transaction costs _ Attractive villages for Micro-Utilities (quick demand growth, high density villages, large villages, working decision making structures) are available _ In some villages strong demand growth thanks to tourism _ The MicroPowerEconomy block planning model fits nicely into the local family environment and household budget planning _ The split of assets can be implemented easily in systems where there is already a grid available _ Meters alrady installed at poles no grid structure changes required _ BAPA can easily be transformed into mini-grid operator

16/16 MicroPowerEconomy means development options for rural citizens and attractive profits for investors! INENSUS GmbH Am Stollen 19D 38640 Goslar Germany www.inensus.com Tel +49 (5321) 38271 0 Fax +49 (5321) 38271 99