1 / 7

Expanding access to electricity: the role of large companies Paul Loeffelman

Expanding access to electricity: the role of large companies Paul Loeffelman American Electric Power Managing Director – Corporate External Affairs, Head of International Cooperation Affairs Washington D.C. 21 st February 2012. Strategic & commercial drivers.

lula
Télécharger la présentation

Expanding access to electricity: the role of large companies Paul Loeffelman

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Expanding access to electricity: the role of large companies Paul Loeffelman American Electric Power Managing Director – Corporate External Affairs, Head of International Cooperation Affairs Washington D.C. 21st February 2012

  2. Strategic & commercial drivers • Key feature of many emerging & low income country energy markets. • ‘Base-of-the-pyramid’ (BoP) market for energy services - USD +500 billion per year. • Provision of infrastructure & management services. • Competitive advantage for utility service providers. • Deployment & commercialization of new technologies.

  3. Centralized electricity provision: company cases • Eskom. Improving the electrification rate in South Africa by 36 to 83%, targeting universal coverage by 2020. • GDF Suez. Improvingaccess to electricity and other utility services for 500 000 people in Casablanca. • Eni. Reducing gas flaring and providing electricity for 700 000 people in the Congo. • Chevron. Clean and reliable hydropower from geothermal power in Indonesia for 4 million households.

  4. Extending the grid • Key business model innovations: • Cost reductions through technical innovation. • Connection costs paid in installments. • Helping customers improve their efficiency of energy usage. • Pre-pay technology to reduce losses and increase convenience. • Working through community associations. • Complementary businesses (e.g. sale of appliances). • Challenges: • Cost of servicing many rural communities. • Affordability for poorest consumers.

  5. New models for decentralized energy services: company cases • ABB. Access to Electricity Program. • Schneider Electric. Distributed solutions for remote communities in Vietnam. • Osram. Off-Grid Lighting – Energy Hubs.

  6. Distributed/renewable systems • Key business model innovations: • Establishing/working through local enterprises as the service providers. • Locally-appropriate technologies. • Servicing household and productive uses. • Financial model - balancing affordability and operational sustainability. • Challenges: • Mobilizing capital costs. • Sufficient local capacity to manage, operate and maintain systems. • Cost v’s reliability trade-offs.

  7. Scaling up business investment • Business investment can be scaled up by: • Removing investment barriers • Enhancing return on investments • Lowering the risks on investments • Addressing risks is critical: • Risk drives the cost of capital and hence the return on investment • Risks: political, policy, technical, currency, carbon prices etc. • Key tools: Power Purchase Agreements (PPAs), strong/enforceable contracts, insurances, investment guarantee facilities etc. • Fundamental importance of well-designed and stable policy and regulatory environment • Public-Private Partnerships will be a key delivery model • Strengthening PPPs to Accelerate Global Electricity Technology Deployment (UN-Energy & GSEP)

More Related