PHOTON International The Photovoltaic Magazine

Worldbank awards solar projects in Laos and Nepal

Sunlabob from Laos and the Environmental Camps for Conservation Awareness (ECAA) in Nepal are the only two institutions among the winners of the »World Bank Development Marketplace 2005 Award« to be honored for solar projects.

	© Sunlabob Rural Electrification Systems Co. Ltd.
Ex-Worldbank president James D. Wolfensohn presents the Development Marketplace Award to Sunlabob managing director Andy Schroeter during the award ceremony on May. 25.

On May 25, Andy Schroeter, the German managing director of Sunlabob and Prachet Kumar Shresta of ECAA received the prizes from the hands of James D. Wolfensohn, at that time still president of the World Bank. While Sunlabob received $150,000 for its solar home system (SHS) rental service providing electricity to households in rural areas of Laos, ECAA was awarded $91,400 for a project replacing kerosene lamps with solar lamps.

Contrary to other SHS financing schemes, such as credit sales or fee-for-servicing, Sunlabob's systems would be financed through a self-managed rental fund. End-customers, either private households or village communities, would not own, but rent, the systems in exchange of a monthly fee, which covers regular servicing and the replacement of spare parts, batteries, and lamps. Servicing is ensured by a franchise network of local, company-trained village entrepreneurs.

Schroeter says the cash backflow from monthly rental rates would entirely cover hardware and running expenses, making the fund profitable on a basis of a 20-year financial calculation. The Dutch Triodos Bank validated the business plan and joined the rental fund by injecting $50,000 to its capital of about $90,000 in Nov. 2004. The additional money from the World Bank prize will be used for extending electrification projects to other regions of the country – notably to biodiversity areas of the Laos World Wildlife Fund. The overall potential for off-grid SHS in Laos is estimated to be more than 380,000 SHS, but Schroeter already plans to export the rental concept to neighboring countries, like Vietnam and Cambodia.

ECCA's aim is to set up a micro credit mechanism to motivate Nepalese households to buy so-called »solar tukis,« solar-powered LED bulbs that emit brighter light and avoid the smoke and fire risk of common kerosene lamps. A tuki system consists of two lamps, a 3 W solar panel, a set of rechargeable nickel-hydride batteries, and a radio. Customers pay monthly rates of $2, which is the same amount they would spend on kerosene and dry cells. After two years of credit payment, the ownership of the system goes to the customer.

The prize with a total of $4 million was given to 31 companies and organizations from developing countries for their »Innovations for Livelihoods in a Sustainable Environment« – the official title of the 2005 award. The worldwide competition is held every 12 to 18 months; the Development Marketplace 2006 is under preparation and will be officially launched by the fall. Besides the global award, some of the World Bank's regional offices also carry out smaller, country-based competitions.