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Special Edition on
Productive Use of
Energy
August 2013
Quarterly news on GIZ's work on energy and climate protection
A service by GIZ Energy
GIZ Job Offers
Contents
Three thoughts on: Productive Use of Energy (PUE)
The PRODUSE initiative: How to promote productive use of energy and
evaluate its impacts
The PRODUSE Study: Impact of Productive Use of Electricity in Benin, Ghana
and Uganda
‘Powering Agriculture’ – GIZ joins international initiative
Pushing agricultural boundaries with modern energy in Bolivia
Promoting the productive use of energy in Ghana
Productive Use of Thermal Energy
Barriers to the use of photovoltaic pumping systems
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Interview with Bernhard Zymla, Head of GIZ Energy
Three thoughts on: Productive Use of Energy (PUE)
Why is it important for GIZ to promote productive use of energy?
Experience shows that energy projects will not automatically trigger local
economic activity. Instead, in some cases, electricity take-up is low if small
enterprises cannot afford electricity connection. This undermines the economic
viability and thus sustainability, of many electrification programmes in developing
countries.
Serbia: Advisor Development of a
Sustainable Bioenergy Market –
biomass supply (ID 15567):
www.giz.de/en/jobs/...
Serbia: Advisor Development of a
Sustainable Bioenergy Market –
project development (ID 13820):
www.giz.de/en/jobs/...
Meanwhile, promoting the productive use of energy through, for instance,
entrepreneurial training, business promotion and improved access to financial
services can lead to long-term successes for energy programmes and
sustainable local development.
Nigeria: Advisor Rural
Electrification (ID 15414):
www.giz.de/en/jobs/...
What experience does GIZ have with PUE? What specific projects/
approaches could serve as good practice?
Nigeria: Advisor Renewable
Energy (ID 15402):
www.giz.de/en/jobs/...
In Bolivia, where I worked for several years, our micro-irrigation project proved
very successful (see article below). Farmers became enthusiastic after
witnessing improved harvests and increased incomes. We also provided, for
instance, capacity building for the construction and use of solar dryers for llama
meat – a delicacy – that is now exported. We also introduced a new generation
of toasters for peanuts, which signalled a technological shift from the previous
practice of using wood that had compromised the quality of the peanuts.
Promoting productive use requires cross-sectoral collaboration in partner
countries, encompassing energy matters, business development, training
and education and others. How does GIZ master this challenge?
GIZ has the advantage of being an organisation with expertise and activities in
many sectors. We have a long history of collaborating at country level between
Kenia: Advisor Promotion of Solar
Energy (ID 15314):
www.giz.de/en/jobs/...
Afghanistan: Head of Programme
Rural Energy supply (ID 14627):
www.giz.de/en/jobs/...
Senegal: Head of Programme
Renewable Energy and Energy
Efficiency (ID 15507):
www.giz.de/en/jobs/...
Coming soon:
energy, rural development or water projects. GIZ is therefore perfectly suited for
PUE projects, which require a cross-sectoral approach. For instance, we
designed a number of Energising Development (EnDev) projects that are based
upon and are complementing existing GIZ activities in other sectors, e.g. in the
case of Ghana (see article below).
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Coming soon:
El Salvador: Head of Programme
Renewable Energy
Nepal: Advisor Energy Efficiency
Burundi: Advisor Energizing
Development
Mexico: Advisor Renewable
Energy
The PRODUSE initiative: How to promote productive use of
energy and evaluate its impacts
Milling. Welding. Cold drinks.
None of this is possible without
energy.
Virtually all forms of income
generation require some form of
modern energy. However, it is
not enough to simply provide
electricity and other forms of
modern energy and hope for
local economic development.
The productive use of energy needs to be actively promoted to increase the
impact of energy access programmes. Furthermore, PUE is crucial for ensuring
that individuals are able to afford using electricity and other forms of modern
energy, and that energy providers generate sufficient revenue to operate and
maintain their systems.
Hence the Energy Sector Management Assistance Program (ESMAP), the
Africa Electrification Initiative (AEI), the EUEI Partnership Dialogue Facility (EUEI
PDF) and the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
(GIZ) launched the Productive Use of Energy (PRODUSE) Initiative. PRODUSE
aims to disseminate knowledge and information on PUE promotion and evaluate
PUE’s impacts on micro, small and medium enterprises.
One of the initiative’s main outcomes is the PRODUSE website
(www.produse.org), a new portal for energy practitioners that provides access
to project examples, studies and tools to promote and evaluate PUE. Other
organisations are invited to join the initiative, use the portal and contribute
relevant news, studies, tools and project descriptions.
For further information, contact [email protected]
Picture: A welder in Uganda
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The PRODUSE Study: Impact of Productive Use of Electricity
in Benin, Ghana and Uganda
Electrification practitioners often
emphasise the need for PUE to
enhance the incomes of home
businesses and enterprises.
However, systematic evidence of
the relationship between access
to electricity and poverty
alleviation is scarce, and there is
virtually no rigorous evaluation of
electrification interventions particularly in Africa.
To fill this gap between the practitioners’ perception and the lack of robust
evidence, GIZ and ESMAP developed a methodology for evaluating the impact of
electrification on micro, small and medium enterprises and tested it in Benin,
Ghana and Uganda.
Recent publications
GIZ and EUEI PDF
Productive Use of Thermal
Energy – An Overview of
Technology Options and
Approaches for Promotion.
August 2013
More information & Download PDF,
3.5 MB (English version)
GIZ and ESMAP
Productive Use of Energy
(PRODUSE) – Measuring
Impacts of Electrification on
Small and Micro Enterprises in
Sub-Saharan Africa.
August 2013
More information & Download PDF,
5.8 MB or 316 kB (English version)
GIZ and ESMAP
Productive Use of Energy
(PRODUSE) – Impact
Monitoring and Evaluation of
Productive Electricity Use: An
Implementation Guide for
Project Managers.
August 2013
More information & Download PDF,
281 kB (English version)
REN21, 2013: Renewables
Global Futures Report 2013.
More information & Download PDF,
3.5 MB (English version)
REN21, 2013: Renewables
Global Status Report 2013.
More information & Download PDF,
7.7 MB (English version)
EnDev: Empowering People –
Report on Impacts.
May 2013
Download PDF, 6.3 MB (English
version)
The results are presented in the study ‘Productive Use of Energy (PRODUSE) –
Measuring Impacts of Electrification on Small and Micro-Enterprises in SubSaharan Africa’ (www.produse.org/study/). The study shows that proper usage
of statistical techniques is required for deriving solid findings on PUE impacts
and has demonstrated that methodological rigour is possible despite limited
project budgets.
The findings show that electricity usage hardly translated into higher profits.
These rather sobering results were contrasted with some evidence indicating
that electrification can lead to the creation of new firms that generate additional
income and lead to development in the project regions.
Small service and manufacturing firms now offer goods and services that were
previously unavailable locally or imported from other regions. Furthermore, in
some cases, larger firms were attracted to a region because it has electricity.
Since the three investigated cases are not representative of the various settings
of electrification projects, it is too early to draw conclusions on the nexus
between electrification, productive use and development impacts. The authors
therefore encourage development practitioners and policy-makers to use
rigorous evaluation methodologies like the one used for PRODUSE to build a
growing body of knowledge about the real impact of PUE in developing countries.
For further information, contact Lucius Mayer-Tasch ([email protected]).
Picture: Business can now go on into the night.
Brochure ‘Energie verbindet’
May 2013
Download PDF, 3.2 MB (German
version)
Upcoming Events
21 – 25 October 2013
Renewable Energy Week 2013
Berlin | Germany
24 October 2013
Wind Energy and Development
Dialogue
Berlin | Germany
24 – 25 October 2013
ICLEI Local Renewables 2013
Conference
„Shaping your solar city – practical
solutions from planning to
implementation“
Freiburg | Germany
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Recommended Newsletters
European Union Energy Initiative
Partnership Dialogue Facility EUEIPDF-Newsletter
‘Powering Agriculture’ – GIZ joins international initiative
The food sector is massively dependent on fossil fuels. Considering the
increasing fuel price volatility and the need to produce food for a growing
population, a major challenge is to maximise agricultural productivity and food
production through energy efficient technologies and renewable energies for
farmers and the food industry.
'Powering Agriculture – An Energy Grand Challenge for Development' (PAEGC)
aims to improve clean energy services for farmers and agribusinesses. GIZ, on
behalf of the Federal Ministry for Economic Cooperation and Development
(BMZ), has joined this programme that was initiated in 2012 by USAID, the
Swedish development agency SIDA and the electric power company Duke
Energy.
PAEGC provides financial assistance to innovative projects in developing
countries and emerging economies. In the initiative’s first call for proposals, GIZ
will support two out of 13 successful applications.
The German contribution to PAEGC will also include the establishment of a
'Powering Agriculture Think Tank' based in Germany. This technical unit will
conduct studies and develop new concepts for projects at the nexus of energy
and agriculture. It will focus on testing new cooperation models with the private
sector and specialised public institutions in developing and emerging countries.
In the frame of human capacity development (HCD) activities, there are plans to
set up a network of international advisors to provide technical support to clean
energy projects in the food sector.
For further information, contact Pierre Johannes ([email protected]).
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Pushing agricultural boundaries with modern energy in
Bolivia
GIZ Transport Policy Advisory
Services
GIZ Transport News (German
edition)
Mediterranean Solar Plan &
Renewable Energy Newsletter
(English / Français)
MSP & Renewable Energy
Newsletter
GIZ – International Fuel Prices
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([email protected]).
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Links
Energizing Development – EnDev
www.endev.info
Bolivia
EnDev Bolivia began its PUE
activities in 2006 with active local
participation through co-financing
schemes with local NGOs and
municipalities and through microcredit agreements with local
banks.
The EnDev project in Bolivia has
two components, namely Energy
for Primary Production and
Energy for Transformation.
Under the first component, more
than 14,000 families have
benefited from access to water
pumps for irrigation and other productive uses. Further, they benefited from
network extensions through voltage transformers to operate heavy equipment in
processing plants, storage facilities and dairy production.
Water pumps for irrigation have enabled families to expand their agricultural
areas and decreased their dependence on rain, thus making it possible to plant
and harvest sooner. While crop production and incomes have increased, labour
costs in irrigation have decreased by 89%. Meanwhile milk producers have
increased their income by 10% by using milk cooling systems that are
connected to the electricity grid.
Under the second component, another 7,800 families have benefited from agro
processing technologies like solar dryers, mills, wheat and rice threshers, and
quinoa processing machines.
Anise producers using threshing machines have lowered their production costs
by 48% and have even managed to export their products to Germany and other
countries. Chilli pepper and peanut producers have also increased their incomes
by 47% and 200% respectively.
Another impact is the introduction and the increase in demand for new, highquality technologies for peanuts, quinoa, wheat, coffee, cocoa, oregano and
cereals, developed and produced by national technology providers.
All of this demonstrates that access to energy contributes positively to Bolivia’s
sustainable economic development and increases family incomes.
For further information, contact Boris Ardaya ([email protected]) and Natalie
Pereyra ([email protected]).
Picture: Plentiful bounty: Bolivian farmers using the peanut toaster.
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www.endev.info
PREEEP – Promotion of
Renewable Energy and Energy
Efficiency Programme (Uganda)
www.energyprogramme.or.ug
Programa Energías Renovables y
Eficiencia Energética en
Centroamérica
www.energias4e.com
GIZ/MoIT Wind Energy Project
(Vietnam)
www.renewableenergy.org.vn/
PERACOD – Programme for the
Promotion of Renewable Energy,
Rural Electrification and
Sustainable Supply of Household
Fuels (Senegal)
www.peracod.sn
Energypedia
www.energypedia.info
Reegle – the search engine for
Renewable Energy and Energy
Efficiency (Renewable Energy and
Energy Efficiency Partnership –
REEEP & the Renewable Energy
Policy Network for the 21st
Century – REN21)
www.reegle.info
Renewables Interactive Map
(REN21)
www.ren21.net/...
Back issues
Promoting the productive use of energy in Ghana
Electricity offers vast potential in
promoting local economic
development, especially amongst
small and medium enterprises.
Thus, the Programme for
Sustainable Economic
Development (PSED) in Ghana in
cooperation with EnDev Ghana,
collaborates with local authorities
and business associations in
setting up 15 light industrial zones and extending grid electricity there to ensure
reliable access to energy.
PSED engages the local government and the private sector to commit to
Browse back issues of GIZ's
energy newsletter.
providing additional infrastructure like roads, water and sanitation. In turn, EnDev
Ghana facilitates the planning process and supports the installation of electricity
distribution networks for the zones by co-financing hardware like transformers
and low voltage power lines.
PSED, using GIZ developed methodologies complements these efforts for
sustainable local economic development by offering training and organizational
development, enabling local business associations to manage the industrial
areas sustainably. Small and medium entrepreneurs relocating to the industrial
areas are trained in entrepreneurship, eco-efficiency, energy efficiency and
occupational health and safety.
Consequently, more than 818 enterprises with 2602 employees have acquired
land and established their business inside the designated industrial zones and
offer improved services to their customers. Many entrepreneurs are former
apprentices establishing their own start-ups, boosting economic activity and
employment in the area. In total, 1157 jobs have been created.
At the end of the project’s second phase in mid-2014, at least seven districts are
expected to replicate the approach independently of the project.
For further information, contact Samuel Adoboe ([email protected]).
Picture: A sawmill in Ghana at full throttle.
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Productive Use of Thermal Energy
Alongside electricity and
mechanical energy, thermal
energy plays a key role in
processing goods and offering
services, particularly in remote
areas where biomass and solar
radiation are often the only
source of energy available.
Thermal energy – used for
cooking, heating, drying and
smoking – is essential in the
production processes of
agricultural businesses, small
industries and commercial service providers.
GIZ and EUEI PDF recently published ‘Productive Use of Thermal Energy - An
Overview of Technology Options and Approaches for Promotion’ that sheds light
on improved thermal energy technologies for productive purposes, and
approaches in promoting these technologies especially among the micro, small
and medium enterprises in the agricultural, industrial and commercial sectors.
The publication also provides guidance for energy and private sector
development practitioners on how to effectively promote the distribution of
efficient biomass and solar thermal appliances for productive uses. Additionally,
project profiles based on experience and first-hand information from GIZ energy
programmes in Africa and Latin America illustrate opportunities for promoting the
productive use of thermal energy.
The publication and the country factsheets are available at
www.produse.org/thermal.
For further information, contact Katja Diembeck ([email protected]).
Picture: Producing shea butter with thermal energy
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Barriers to the use of photovoltaic pumping systems
Using renewable energy sources
for irrigation offers a low-carbon
alternative for increasing
agricultural productivity.
However, compared to diesel
technology, the overall uptake of
photovoltaic water pumps (PVP)
remains low. The GIZ project on
‘Resource efficient irrigation with
photovoltaic pumping systems’
ended in 2002. Then, the upfront
investment costs for PVP projects were very high.
Today, the decreasing PV module and inverter costs and increasing diesel
prices mean that the life cycle costs of PVP have significantly improved
compared to 2002. The higher running costs of diesel systems – especially for
operation and maintenance – have resulted in PVP breaking even with those in
less than two years.
Nevertheless, many farmers still choose the fossil fuel variant for pumping
water, as it is difficult to acquire higher capital investment for PVP. Thus, GIZ
projects in Uganda and India are working on framework conditions that could
improve access to capital required to finance PVP.
However, finance is not the only problem: Product availability, existing habits in
the population, technical skills for design & installation of PVP and after-sales
services all require attention.
For further information, contact Caspar Priesemann
([email protected]).
Picture: A flourishing tomato patch in Uganda thanks to PVP.
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Brenda Haas, [email protected]
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