1. Micro Hydro Power Management Business Development

2. 2 Content of Presentation Role of Micro Hydro Power (MHP) Scheme Expanding the Business Concept of Business Development Expanding MHP Related Businesses Developing New Business Units Recommended Steps Additional Effects of Business Development Productive Use Concept of Productive Use Considerations

3. 3 Role of Micro Hydro Power (MHP) A Micro Hydro Power (MHP) scheme is not the final aim of a renewable energy/rural energy program The final aim is the improved welfare of the communities - the MHP scheme represents a tool to help achieve this aim Therefore the MHP management should consider all efforts to improve the welfare of the community

4. 4 Concept of Business Development Background MHP management is essentially a small business entity (village utility) that must operate with a positive cash flow in order to ensure continued operation of the MHP scheme Sustainability of MHP Scheme Sustainability of MHP scheme is largely dependant on a healthy financial condition being maintained. The more funds the scheme can accumulate the more able it will be to cover periodic overhaul and equipment replacement costs

5. 5 Expanding MHP Related Business Core Business In most cases the core business of MHP management is selling electricity to households for evening lighting Expanding the Business Expanding & strengthening the core business by widening the market to include small industrial end uses (productive end use). This includes opening new lines of business such small workshops, agro processing, cottage industries such as sewing etc

6. 6 Developing New Business Units Important Factors Availability of adequate power. There must be sufficient power and a the means to access it for small businesses Good Quality of Power. Quality of the power supply influences what type of appliances can be used Capable Man Power. Skilful man power is needed for specific sectors Market for products. There must be adequate demand demand for products / services Available funding. To invest in new equipment / infrastructure adequate funding is required Community agreement. Participation of community is important, they should be informed on potential for business creation (awareness building)

7. 7 Expanding Business - Recommended Steps Assessing the market potential Assessing specific business forms / niches Examining specific production processes and services which may be viable Assessing the man power and natural resource requirements Assessing the overall feasibility of the business Assessing required investment Assessing potential impacts on the environment

8. 8 Additional Impacts of Business Development The additional impacts are: Improved skills of local man power Improved entrepreneurial capacity of communities to identify potential business opportunities Improved managerial skills of communities regarding small scale industry development (i.e. Financial, Production, Marketing)

9. 9 Concept of Productive Use Productive end use means any activity that utilizes energy (electrical or mechanical) for income generating activities. Through the expansion of income generating activities tangible impacts on the local economy and welfare of the community are achieved Productive end use is a key strategy to improve the sustainability of MHP schemes in parallel with enhancing community welfare

10. 10 Considerations In promoting the development of productive end uses, one should consider: Product and the market. The product should be marketable and access to markets must exist Local resources. Should maximize the use of local resources and avoid over dependency on outside services. This includes local man power Empower women. Productive end use promotion should target both men and women. Many small cottage industries are traditionally handled by women Power Availability. Adequate power of a acceptable quality must be available and accessible