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Energy Needs Assessment and Energy Policy Formulation for Pro-Poor Community . Technical Working Group (TWG) V Meeting Works Progress Semarang, July 10 2011. Design of Activities in TWG V. Methodology of Study. Design of Participatory Rural Appraisal (PRA).

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energy needs assessment and energy policy formulation for pro poor community

Energy Needs Assessment and Energy Policy Formulation for Pro-Poor Community

Technical Working Group (TWG) V Meeting

Works Progress

Semarang, July 10 2011

design of participatory rural appraisal pra
Design of Participatory Rural Appraisal (PRA)
  • The information will be collected during the FGD and PRA survey (semi-structured interview) based on the following issues for set of guideline questions.
    • Average daily or monthly income of rural communities, and daily/monthly energy and other needs expanses
    • Form of energy which is currently used for domestic activities, community services and local entrepreneur,
    • Renewable energy potentials, accessibility and constraints,
    • Socio-economy conditions,
    • The lifestyle, community social characteristics and cultural background,
    • Willingness and ability to pay by community in terms of energy installation in their household.
slide6

HOUSEHOLD

    • To assess the daily/monthly income and expenses.
    • To get a better insight in current energy related problems.
    • To calculate the energy need and its consumption (cost) for energy and other needs.
    • To evaluate the energy priorities for households.
    • To evaluate socio-economy condition: potentials and limitations.
    • To formulate the available energy potentials surrounding their village(s) that can be used as alternative energy for household.
    • To assess the willingness and ability to pay of community for RE installation in household.
slide7

LOCAL ENTREPRENEURS

    • To get a better insight in current energy related problems.
    • To calculate the energy need and its consumption (cost) for energy.
    • To formulate the energy potentials surrounding their village(s).
    • To evaluate the priority of energy use in ranking according to the urgency of a problem for local entrepreneurs.
    • To identify possible economic activities (development) that can be operated if the new energy have been supplied to the sites.
    • To evaluate the willingness and ability to pay for RE installation in their industries/production.
slide8

LOCAL STAKEHOLDERS (LOCAL AND REGIONAL GOVERNMENT)

    • To evaluate the energy problems and energy potential source
    • To list the available energy policy and program
    • To evaluate the stakeholder rules in energy/economic program
    • To evaluate possible financial (credit) scheme for energy installation (if any).
fgd focus group discussion
FGD (focus group discussion)
  • The main issues were discussed in this activity was:
    • energy needs : summary from PRA
    • energy priorities in community and business opportunities in the village(s)
    • willingness to pay for energy installation
pra survey
PRA Survey
  • PRA Survey
    • Conducted in two different locations of dusun/desa.
    • Involved on field-survey: in depth interview and stakeholder analysis, sampling to households, local entrepreneurs and stakeholders.
  • Stakeholders and community representative meeting
sampling of respondents in pra
Sampling of Respondents in PRA

Group 1 :  Low income, household, work: farmer/ services

Group 2 : Medium income, household, work: farmer/ services with additional income

Group 3 : Medium income, household, work: officer (government)

Group 4 : Medium income, local entrepreneur in various sectors

location of twg 4 and 5
Location of TWG 4 and 5

Location 2:

DusunWirokerten

Botokenceng Village

Banguntapan District

Bantul Regency

Yogyakarta Region

Location 1:

DusunSrumbung

Segoroyoso Village

Pleret District

Bantul Regency

Yogyakarta Region

slide13

Cow-skin crackers industry

Cow-skin crackers are still cooked using fire-wood stove. Proposed RE project will be implemented to reduce the use of fire-wood stove.

slide15

Potential renewable energy sources: animal dung from chicken, horse and cow husbandries.

fgd result energy problems
FGD Result: Energy problems

Increasing fossil fuel price, i.e., petrol, solar and kerosene, has directly burdened to the community.

The energy price increase, the goods also increase.

Household must decrease the spending for energy sector, e.g., reducing transportation activities, changing the kerosene to other type of energy for cooking, i.e., firewood and LPG; and energy saving for example limited lighting in household at night.

For local entrepreneurs, increasing energy price causes production cost increases. As a result, they must change to other type of energy to reduce the incremental cost.

fgd result energy problems1
FGD Result: Energy problems

Community in study area is still fearful to use LPG due to increasing explosion cases in use of 3kg gas cylinder. It causes the LPG conversion program this village is not totally successful. In addition, the use of LPG for cooking activities is more expensive compared to the energy mix of LPG and firewood.

The electricity connected from PLN grid often blackout. It may cause the disturbances in their activities at night and business. As a result, they use the kerosene for lighting when the electricity is blacking out.

concept of energy program policy formulation

Needs of energy

Proposed Programs/Policies

Concept of Energy Program (Policy) Formulation

Economic Analysis & Technology

Local Wisdom

Non & Government& Programs

Local

Stakeholders

Energy Potential

Energy

Infrastructure

formulation scheme on energy policy
Formulation Scheme on Energy Policy

Most energy priority or need

Energy Need

Energy technology

ATP

WTP

Energy program

Stakeholders analysis

Energy potential/ source

Energy policy

Local wisdom/culture/ condition

Financial scheme & cash flow analysis

Action Plan

Roadmap

Community Participation

alternative renewable energy program
Alternative Renewable Energy Program
  • Biogas for households and local entrepreneurs
    • Saving in cooking and production costs
    • (side effect) benefit from residual biogas material of fertilizers
  • Jathropa Stove for households and local entrepreneurs
  • SHS for house lighting
    • Saving in electricity
schema of first proposed re project needs potential
Schema of first proposed RE Project-Needs-Potential

Cow-skin cracker industry

Household – foods cooking

Animal manures

scheme of third proposed re project needs potential
Scheme of third proposed RE Project-Needs-Potential

Cow-skin cracker industry

Household – foods cooking

Available Unproductive Lands for Jatropha Cultivation

schema of second proposed re project needs potential
Schema of second proposed RE Project-Needs-Potential

Household – lighting

Adequate solar radiation

price of proposed biogas
Price of Proposed Biogas

Source: BIRU Program

solar home system 200w
Solar Home System (200W)

1 unit solar panel 50 wp

Cable 7 m and jack,

1 unit electric box system (ebs) 200 w,

1 set of electrical installation (35 m wire, fuse, etc.),

4 set led 12 v - 2,5 w

1 unit florescent lamp 220 v - 10 w

Price: IDR 5,000,000.00

workshop and focus group discussion on proposed energy programs
Workshop and Focus Group Discussion on Proposed Energy Programs
  • Workshop:
    • Solar panel (SHS)
    • Biogas
  • Focus Group Discussion:
    • Stakeholders
    • Community (representatives)
    • Local entrepreneurs
response from community household on option of proposed energy programs
Response from Community (Household) on Option of Proposed Energy Programs

A. BIOGAS for household and local entrepreneurs.

B. Jatropha Stove for cooking (household)

C. Solar Home System (SHS) for lighting

reason for choosing the biogas
Reason for choosing the biogas
  • Household has the energy potential for biogas, i.e., cow (1-4 cow) and chicken (10-30 chicken).
  • Biogas installation also produces the additional economic values, i.e., organic fertilizer from the biogas.
  • The energy potential is provided in household and surrounding area.
  • Biogas installation can be managed (constructed and maintained) easily compared to others RE installation.
  • Investment cost is not quite expensive.
  • Operation cost is not high and the maintenance is effortlessness.
some notes from fgd community and local entrepreneur response for re installations
Some notes from FGD (Community and Local Entrepreneur Response) for RE installations
  • Biogas
    • community gives the impressive response for biogas installation, but they need to look at the real example on the success story of biogas directly.
    • for this installation, the subsidy scheme is preferred.
  • SHS
    • The technology is quite complex, they concern in the maintenance.
  • Jatropha
    • The supply of Jatropha seed is not adequate in the market.
willingness to pay1
Willingness to Pay
  • WTP is the maximum amount of money that individual/household states that they are willing to pay for a good/services.
  • The three methods:
    • observation in the price that people pay for goods or services in various market/cases.
    • observation in individual expenditures of money, labor, etc. to obtain the particular goods or services
    • asking the people directly what they are willing to pay.
ability to pay atp for biogas
Ability to Pay (ATP) for Biogas

Some measure of "ability to pay" is typically used for determining the level of community capability to provide their own money to contribute in the program and for estimating the subsidy, grants or loans to be made available to projects.

The "ability to pay" analysis is a definition based on the amount that households pay for energy cost in cooking relative to "residual income". Residual income is defined as the amount remaining from household income after payment of housing costs.

equation
Equation

ability to pay factor = average energy cost paid for cooking ÷ residual income in IDR

residual income = household income - home payment – non-cooking utilities – tax (etc.)

slide44
(1) Percentile Analysis:Sample data from survey of annual residual income and annual cost of energy cost for cooking
2 equation
(2) Equation

Design of ATP factor = average ATP – 1.28

Computation Example:

Average ATP factor = 61.84

Deviation = 15.30

Design of ATP factor = 0.42

stakeholder analysis
Stakeholder Analysis

Participation and rule of stakeholder involved in the program.

SWOT Analysis: Planning to Implementation

Evaluation on Project Sustainability

slide49

Energy Policy

Tujuan: Meningkatkan akses energi di masyarakat dengan memanfaatkan potensi energi yang ada disekitarnya.

Target: Masyarakat dapat memanfaatkan energi (EBT) dalam aktivitas kehidupan sehari-hari sehingga bisa dapat mengurangi pengeluaran.

Government

University

Local stakeholder

Donor

LSM

Community leader

Stakeholders

Bank/Financial Inst.

Community org.

Bentuk (finansial) program:

    • Program pemerintah
  • Swadaya masyarakat
  • Subsidi-Grant & swadaya masyarakat

Energy program

Community

Diagram 1: Keterikatan stakeholder dalam kebijakan/program

TOPIK DISKUSI 1: Apakah setuju dengan unsur stakeholder yang terlibat untuk kebijakan/program uang diusulkan?

slide50

Implementation

Policy

Program

SWOT ANALYSIS

Weakness (Constraint)

Strength

Treat

Opportunity

proposed financial scheme
Proposed Financial Scheme

A: Subsidy/Grant from government and donor institution.

B: Limited investment from community own-funding.

C: Credit/soft loan with soft-interest rate.

D: Total community own-funding.

recommendation roadmap instruments on energy policy for community

Community Response

Roadmap of Energy Policy

Recommendation: Roadmap Instruments on Energy Policy for Community

Economic Analysis

Local Wisdom

SWOT

Stakeholder

Participation Analysis

Financial Scheme

Energy

Infrastructure

next activities
Next activities

Completing the final report: correction, revision and finalization (July – 8 August 2011)

Submit the final report (August/September 2011)