UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE

1. IN-SESSION WORKSHOP ON CLIMATE CHANGE MITIGATION UNITED NATIONSFRAMEWORK CONVENTION ON CLIMATE CHANGE PROMOTION OF RENEWABLE ENERGIES IN ISOLATED RURAL AREAS IN PERU Teodoro Sanchez Campos Energy Programme Manager ITDG- Office for Latin America

2. Intermediate TechnologyDevelopment group (ITDG) • Founded in 1966 by EF Schumacher, ITDG is an international group of development organisations with charitable status. Its head office is in the UK, with regional and country offices in Africa, Asia and Latin America.

3. Rural Energy in Peru Demand and Resources • High concentration of people in the Andes and Upper Jungle • Family income, US$ 300 to US$1500 yearly • Good potential of hydro resources in the Andes and Upper Jungle • Rural people of the Coast have better opportunity to get electricity from the grid. • In the lower Jungle the resources are based on PV, Biomass and river current, the last one in small quantities

4. Appropriate technology • development and transfer • Build the manufacture capacity Lack of affordable technology Financial model with public and private participation Lack of financial mechanisms • Appropriate management • schemes • Build local capacity Lack of local capacity Promotion of an appropriate legal framework Lack of appropriate legal framework ITDG strategy Clean energies: small hydro, wind, solar, biomass BARRIERS SOLUTIONS

5. I – COST REDUCTION/APPROPRIATE TECHNOLOGY SMALL HYDRO Low head turbines Low cost intakes Low cost channel River current turbine Motor as generator

6. I – COST REDUCCTION/APPROPRIATE TECHNOLOGY SMALL WIND ELECTRCITY GENERATORS Huacho, may 2001 Hualgayoc, August 2002

7. I – COST REDUCCTION/ APPROPRIATE TECHNOLOGY SOLAR PV

8. I – COST REDUCCTION/ APPROPRIATE TECHNOLOGY BIOMASS “Use of rise husk for brickmaking, north of Peru

9. REVOLVING FUND FOR THE INSTALLATION OF SMALL HYDRO SCHEMES Initial capital US$ 400,000, loans from US$ 10 to 50 thousand, interest rate 10% yearly, recovery periods 1 to 5 years RESULTS • 27 SHPP installed (more than 1.6 MW) • US$ 900,000 allocated • 5,000 rural families connected to electricity • About US$ 3.5 million leveraged • Increased the capital to US$ 700,000 • More than 200 micro enterprises created or strengthened II- FINACIAL MODELS

10. III- MANAGEMENT MODELS ITDG/ESMAP MODEL MANAGEMENT MODEL PROPIETARIO ASAMBLEA DE USUARIOS (Organismo Contrato de concesión fiscalizador del Pago por la concesión servicio) Contrato de servicio EMPRESA USUARIO Pago por consumo

11. III- DEVELOPMENT OF MANAGEMENT MODELS Management Micro Enterprise US$/kWh Block I Tariff scheme Block II Block III kWh • Operators • Administrators • Leaders and authorities • users Training (CEDECAP) Management of SHPP

12. SHPP AND PRODUCTIVE USES

13. GENERAL CONCLUSIONES • The cost of equipment and parts goes down to 1/2 up to 1/5 of the conventional costs • The cost of operation and maintenance using local human resources goes down to 1/5 up to 1/10 of the conventional costs. • The sustainability of the schemes improves greatly because of the direct intervention of local people on management and operation. • The strategy allows the building of the local capacity not only for energy but for other activities • For faster dissemination, it is necessary the intervention of the government. • The strategy is replicable