Overview of Slum Electrification (Global vs. African Experience), by Connie Smyser October 26-27, 2009, Nairobi, Kenya Promoting Energy Access for
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1 1 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
2 Overview f Slum Electrificatin (Glbal vs. African Experience) Cnnie Smyser Presented at Prmting Energy Access fr the Urban Pr in Africa: Appraches and Challenges in Slum Electrificatin Nairbi, Kenya Octber 26-27, 2009
3 Outline Overview f Slum Electrificatin (Glbal vs. African Experience) Cmmnalities in Appraches Majr Differences Africa vs. Other Regins An African Example Key Issues fr Discussin 3 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
4 Reasns fr Urban Electrificatin Imprve financial viability f cmpany: reduce lsses and/r increase revenues Meet universal access requirements Increase safety; imprve system reliability Rebuild war-trn r neglected grids/systems Liberia Brazil 4 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
5 Technlgical and Prgrammatic Elements Cmmunity engagement and building f trust; scial cmpact Service/prgram plan and design Preparatin fr electrificatin (physical, peratinal, cmmunity) Implementatin (educatin, system installatin) Pst implementatin (custmer and cmmunity satisfactin, nging engagement and vigilance) Scale up Ri de Janeir, Brazil Manila, Philippines 5 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
6 Cntinuum f Technlgy Appraches N meters, fixed invice, lad limiters, & peridic sweeps Kenya/Dminican Republic Master meter at perimeter with lw-cst sub-grids and submeters and cmmunity representative ding cllectins (Mrcc) Perimeter-based elevated individual meters (Philippines) Grund level enclsed meters with tamper signals t DISCO (India) Strategic use f technlgy and custmer investments: Visible grund-level meters with caxial cable service drp and efficiency imprvements t reduce cnsumptin t affrdable levels (Brazil) Elevated electrnic meters and smart cnfiguratin with macr-metering and energy balancing. (Brazil, Chile, Clmbia) All f abve plus split-meter prepayment system (Suth Africa) 6 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
7 Wall f meter bxes at slum perimeter First effrt led t high levels f custmer t custmer theft, via easily accessed lng distributin lines frm hmes t meters. In redesign cmpany elevated the meter wall and used insulated cable t reduce access. Surce: Manila/ Meralc 7 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
8 Tamper sensitive meter bxes Opening f Dr sends SMS T Cntrl Center Mdem interlcked with Panel drs Surce: Reliance, Mumbai 8 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
9 Tamper resistant meter enclsures Such ptins may r may nt be effective depending n the degree f the culture f nn-payment and cmmunity attitudes Surce: LIGHT, Brazil 9 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
10 Caxial Cable in Service Drp Very effective in reducing illegal tapping while lwering cst f anti-theft system Tapping int line results in immediate shrt circuit. Custmers learn fast nt t try tapping. Burned ut meter after attempt t cnnect t caxial cable in service drp Surce: AES Eletrpaul, Brazil 10 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
11 Anti-theft Distributin Cnfiguratin Autmated meter reading, meters far frm grund, MV belw LV is riskier t tap MV/LV transfrmer Surce: Ampla, Brazil Lw vltage grid abve MV grid Meter cncentratr Medium vltage grid Custmer cnnectin 11 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
12 Internal Safety Imprvements Ready bards (all in ne wiring) are particularly useful in simple structures which can nt be safely wired. Internal rewiring is a cmmn element in Latin America Surce: PN Energy SA 12 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
13 Majr Differences in Apprach (Africa vs. Other Develping Cuntries) Prepayment much mre cmmn in Africa Implicatins f supply shrtages (e.g., stpping theft frees up kwh t sell t legitimate custmers) Lack f cst recvery via the tariff and very lw cnnectin rates, even fr middle incme custmers, makes argument fr cnnecting pr hard t justify plitically. Very lw incmes. Csts such as cnnectin fees remain a huge barrier. 13 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
14 Benefits f Prepayment Fr Cnsumer: Happier custmers (better( quality f the service and better cntrl f family budget ) Fr Cmpany: Mre transparency and reductin f cmplaints; Stimulates vluntary demand reductin Imprvement in cllectin rati and reductin f administrative csts Lw management cst: n discnnectins r recnnectins, n meter reading, n billing r distributin, n penalties, n credit fr custmers, debt recvery thrugh the prepay system Easy t lcate installatins thrugh GIS/GPS system. Cnverting illegal cnnectins in new custmers imprves revenues BUT high investment and nging csts. System is nly as gd as ability f cmpany t use it t advantage. 14 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
15 Prepayment Example: EDM/Mzambique (1) Pr starting cnditins: Ttal distributin lsses abut 43% in 1995 due t fraud, bad cllectin rati, pr distributin grid quality, sme custmers withut meters r bslete/ld meters, manual billing and cllectin Cmmercializatin strategy: Creatin f the Cmmercial Department Implementatin f Lss Reductin Prjects (e.g., meter reading, bill delivery, cuts and recnnectins, inspectins huse by huse, illegal cnnectin and fraud, changing (bad/ld) meters, special attentin t the High and Medium Vltage Custmers, cmmunity invlvement Restructuring and Mdernizatin f the Cmmercial activities Implementatin f Pre-Payment Payment System 15 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
16 Typical Split Meter Cnfiguratin Custmer can cntrl cnsumptin while cmpany reduces administrativ e csts and theft. [Surce: Cnlg] 16 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
17 Prepayment Investment and Financing: EDM/Mzambique (2) Sizeable initial investment (distributin upgrade, management system and meters); Sales and management system sftware Hardware System Master Statin (SMS Hardware) Vendr Pints f Sale GIS/GPS System. Prgressive Financing Apprach Turn key Prjects; Prjects financed by EDM funds; Prjects financed by cmmercial credits and thers (grid expansin credits). 17 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
18 EDM/Mzambique (3): Results The number f custmers mre than dubled in 4 years The cllectin rate imprved frm 75% in 1995 t 94% in 2005 Cnsumptin per custmer drpped frm 148 kwh t 124 kwh The ttal distributin lsses decreased frm 43%, in 1995 t 18%, in 2005 Majr Cncern: Meter life expectatin shrt and high cst f replacement meters. 18 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
19 Overall Key Success Factrs Special attentin t cnsumer needs: credit, tailred payment, assistance with affrdability and cntrllability f cnsumptin Physical vigilance supprted by cnsumptin data mnitring and balancing against electricity supplied Technlgy and persnnel upgrades t match degree and lcatin f theft, fraud and mismanagement. Fcus first n theft reductin by larger custmers and large pckets f theft. Investments are mre easily justified. Plan fr the lng haul. Success may take 10 years f sustained effrt. 19 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
20 Overall Key Issues Cmpany financial viability: Is prepayment necessary fr a successful prgram? What are the true csts f prepayment systems and wh well t they integrate int existing system and data management systems? With lw cnnectin rates r pr cst recvery, which investments are justified? Cnsumer issues: Hw can we vercme issues with cnnectin csts, affrdability? Shuld the apprach be different fr shrt supply situatins? Can energy efficiency be imprved? 20 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
21 Fr mre infrmatin Useful dcuments available 2004 Reprt n Innvative Appraches t Slum Electrificatin 2005 Practitiners Wrkshp and Prceedings (Salvadr, Brazil) 2006 Develpment f prjects in Angla and, with the Internatinal Cpper Assciatin, in India and Brazil Practitiners Wrkshp and Prceedings (Sa Paul, Brazil) AES/USAID/ICA Brazil Slum Electrificatin and Lss Reductin Case Study, February 2009 USAID Optimal Feeder Technlgy Tl Kit, t be published December, 2009 Pedr Antmann, Wrld Bank, Strategies t Achieve Sustainable Imprvements in Operatinal Perfrmance f Electricity Distributin Cmpanies, available by request frm pantmann@wrldbank.rg Cnnie Smyser, Smyser Assciates, cnniesmyser@al.cm (URLs fr abve citatins available upn request.) All phts taken persnally by Cnnie Smyser 21 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
22 22 Overview f Slum Electrificatin (Glbal vs. African Experience), by Cnnie Smyser Octber 26-27, 2009, Nairbi, Kenya Prmting Energy Access fr the Urban Pr in Africa
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