1. Title of project: Solar-Based Rural Electrification in Honduras
2. Host country: Honduras
3. Brief project description:
The Solar-Based Rural Electrification project will provide solar-based electrification to between 2,000 and
5,000 rural Honduran households not served by the electrical grid system. This technology will replace
kerosene lamps with photovoltaic (PV)-powered electric lights and, thus, eliminate carbon dioxide
(CO2) emissions from kerosene combustion. In addition, charging batteries with stand-alone PV
modules will displace the practice of charging batteries on grid electricity.
4. Participants:
Name of Organization or Individual
Country
Cooperativa Marcalina de Cafetaleros (COMARCA)
Honduras
Asociacion Hondurena par el Desarrollo de la Juventud y Mujer Rural (AHDEJUMUR)
Honduras
Asociacion Hondurena de Desarrollo (AHDE)
Honduras
La Asociacion para el Desarrollo de La Energia Solar-Honduras (ADESOL-Honduras)
Honduras
Enersol Associates, Inc.
U.S.A.
Item
Organization
Name of organization (original language)
or
Name of individual if unaffiliated with any organization
Cooperativa Marcalina de Cafetaleros
Name of organization (English)
No information is available.
Acronym (original language)
COMARCA
Acronym (English)
None
Department
Function(s) within the AIJ project activities
Project development
Street
Barrio La Tejera
City
Marcala
State
La Paz
Post code
Country
Honduras
Telephone
504-98-1314/504-98-1738
Fax
E-mail
World Wide Web-URL address
Administrative Officer Responsible for the Project
Surname
Sr. Bonilla
First name, middle name
Adan
Job title
President
Direct telephone
504-98-1314/504-98-1738
Direct fax
Direct e-mail
Contact Person for AIJ Activities (if different from the Administrative Officer)
Administrative Officer Responsible for the Project
Surname
Hansen
First name, middle name
Richard D.
Job title
Director
Direct telephone
508-251-1828
Direct fax
508-251-5291
Direct e-mail
Contact Person for AIJ Activities (if different from the Administrative Officer)
Surname
Smith
First name, middle name
Julie
Job title
Program Coordinator
Direct telephone
508-251-1828
Direct fax
508-251-5291
Direct e-mail
5. Description of AIJ project activities
Item
Type of Project
Sector(s)
Energy
Primary activity(ies)
Alternative energy generation (solar)
Project Location
Country
Honduras
Exact location (city, state, region)
Rural regions nationwide
Key Dates and Current Stage of Project
Project starting date (month/year)
September 1997
Project ending date (month/year)
August 2021
Project lifetime (years)
24
Current stage of project
Mutually agreed
General Project Description and Technical Data
The Solar-Based Rural Electrification Project replaces kerosene lamps with PV-powered electric
lights in homes in rural regions that do not have electricity service. The project is based on a
model developed by Enersol Associates, Inc. and successfully field tested in the Dominican
Republic. The project has two components: the establishment of local solar-electric service
enterprises and the establishment of end-user credit programs.
Training and technical assistance will be provided to Honduran individuals to help them set up
solar-electric supply micro-enterprises, making the technology an available and sustainable option
for rural Hondurans. The technicians/entrepreneurs will combine imported components from the United
States with locally manufactured components, assemble them into solar-electric systems, then sell,
install, and maintain the systems in rural communities. The development of local consumer credit
mechanisms, managed by the Honduran NGO partners, will provide end-users with financing in the form
of one- to three-year loans, making the systems affordable.
The total number of PV systems that will be installed will depend on the final level of funding,
but is anticipated to be between 2,000 and 5,000. PV systems have an estimated service life of 20
years, so project benefits accrue through the year 2019.
6. Cost
(a) Explanation of methodology for calculating cost data
Methodology for Calculating Cost Data
This information is not yet available.
(b) Cost data-Project development
This information is not yet available.
(c) Cost data-Project implementation
Information on the total project implementation costs is not yet available. The proposal does indicate that
the monitoring and verification component of the project will cost approximately $110,000 over the project
lifetime.
Itemized Project Implementation Costs
7. Monitoring and verification of AIJ project activities and results
Item
Party(ies) that will be monitoring project activities
Party(ies) that will be externally verifying project results
This information is not yet available.
Date when the monitoring plan became (or will become) operational (month/year)
This information is not yet available.
Types of data that will be collected
Number of PV systems installed, amount of kerosene previously burned, and PV system's
electrical capacity
Description of Monitoring and Verification Activities and Schedule for Implementation
Enersol has a detailed monitoring plan for both the technical and the financial aspects of the
project. All participants agree to external verification of the project's GHG emissions
reductions by a third party.
Three parties will be responsible for monitoring activities: the installer, the NGO financing
entity, and Enersol. The primary data to be collected are the number of photovoltaic (PV) systems
installed as a result of the project, which is assumed to correlate with a known number of gallons
of kerosene avoided. For each system installed, figures will be collected for the amount of
kerosene previously burned by the participant and the PV system's electrical capacity.
B. Governmental approval
Item
Please check one of the following.
This report is a first report.
or
This report is an
intermediate report.
or
This report is a final report.
Please check one of the following:
This report is a joint
report. Letter(s) of approval of this report from the designated national authority of the other
Party(ies) involved in the activity is(are) attached in Section J, Annex.
or
This report is a separate report.
Additional comments (if any):
C. Compatibility with, and supportiveness of, national economic development and socioeconomic and
environmental priorities and strategies
Compatibility with Economic Development and Socioeconomic and Environmental Priorities
The project is compatible with the Honduran objective of meeting its national energy needs,
adopting renewable technologies, and providing employment opportunities in rural areas. This
project will bring electrification at low cost to many poor rural households, helping Honduras
accomplish an important development goal.
D. Environmental, social/cultural, and economic impacts of the AIJ project
Non-Greenhouse-Gas Environmental Impacts of the Project
Through the adoption of stand-alone photovoltaic technology, the project will generate a number of
non-GHG benefits. The switch away from kerosene will help reduce health and safety problems
associated with the indoor combustion of kerosene. The project will also reduce the use of dry cell
batteries and hence improper disposal of such batteries containing heavy metal toxins, which can
lead to contamination of soils and water sources.
Stand-alone photovoltaic systems often require little or no land. Typically they are installed on
rooftops, though even when ground-mounted, the modules take up a minimal amount of space. The PV
systems therefore avoid the environmentally disruptive land-use requirements associated with other
methods of electricity supply.
Social/Cultural Impacts of the Project
Solar-based rural electrification improves the quality of rural life because it improves
residential lighting by providing the means for households to replace traditional lighting sources,
kerosene and candles, with electric lights. In addition to improving household lighting, as a
result of the project, solar electric systems may be used in rural Honduran schools, health
clinics, small businesses, and community centers.
Economic Impacts of the Project
The project will provide job opportunities for Honduran citizens to work as technicians,
entrepreneurs, and loan officers.
E. Greenhouse gas impacts of the AIJ project
1. Scenario description
Item
Site Designation
Site number (order of presentation in this report)
1 of 1
Site name/designation
Rural regions nationwide
Project sector
Energy
Reference Scenario
Primary activity(ies)
Use of kerosene lamps for lighting, and car batteries for various appliances.
Has the reference scenario changed since the last report? (If yes, explain any changes below.)
Yes
No
This is the first project report.
Description:
Well over two million residents of rural Honduras in more than 390,000 households live without
electricity, and the state-run electric utility is overwhelmed trying to meet its current demand.
Presently, a majority of these households depend on kerosene lamps for lighting and grid-charging
of car batteries for various electrical appliances. The combustion of kerosene in lamps results in
emissions of CO2. In addition, the grid-charging of car batteries produces
CO2 emissions associated with the grid-generated electricity and battery disposal often
results in contamination of soils and water. In the absence of the project, rural household
dependence on kerosene lamps for lighting and car batteries for electricity is expected to continue
indefinitely.
Predicted Project Scenario
Primary activity(ies)
Alternative energy generation (solar)
Description:
The project will employ specific measures to make solar electric technology known, available, and
affordable, and thereby result in the replacement of kerosene lamps in rural Honduran households
with solar-powered electric lights. The measures include: active demonstrations of the PV systems
as a practical and positive alternative to kerosene lamps and grid-charged batteries; training
local PV system installation and maintenance technicians and assisting them to establish viable
micro-enterprises that sell, install, and maintain the PV systems; and training and assisting staff
from local NGOs in the development, promotion, and implementation of credit programs for PV system
purchase.
Description of Calculation Methodology for the Reference Scenario
The reference scenario is based on emissions that would occur from the combustion of kerosene in
lamps of participating households. Based on the existing energy supply mix of the Honduran electric
grid, which currently includes a major contribution from hydroelectric power, the displaced
grid-charged battery related emissions are insignificant compared to those associated with the
kerosene lamps, and therefore, are not included in the calculations.
It is anticipated that between 2,000 and 5,000 photovoltaic systems will be installed over a 5-year
period beginning in September 1997. For calculation purposes, the developer has assumed that the
average of these two estimates, 3,500 photovoltaic systems, will be installed. Thus, reference
scenario emissions in any given year are calculated by multiplying the number of currently
participating households by the estimated annual emissions per household. The average annual
installation rate of photovoltaic systems over the 5-year enrollment period is estimated by
dividing 3,500 (i.e., the total number of targeted households) by 5 years, which equals 700
installations per year. The actual installation rate will vary.
Based on a study of household energy use patterns in Honduras conducted by the Biomass Technology
Group at the University of Twente, Netherlands (1993), it is estimated that a typical household in
Honduras burns 24 gallons of kerosene for lighting annually. Approximately 0.00279 t C are emitted
per gallon of kerosene burned. This results in 0.0670 t C emitted from kerosene burned for lighting
per rural household per year (= 24 gal/household * 0.00279 t C/gal). Annual per-household carbon
emissions are converted to CO2 on a full molecular weight basis by multiplying 0.0670 t
C by the ratio of 44 t CO2 / 12 t C (=.2457 t CO2). Thus, reference scenario
emissions for the first 5 years of the project are calculated as follows:
Year 1 (1997) (700 * 1) * .2457 t CO2
Year 2 (1998) (700 * 2) * .2457 t CO2
Year 3 (1999) (700 * 3) * .2457 t CO2
Year 4 (2000) (700 * 4) * .2457 t CO2
Year 5 (2001) (700 * 5) * .2457 t CO2
Between 2001 and 2016, the reference scenario emissions remain constant at 860 t CO2 (=
3,500 * 0.2457 t CO2), because all 3,500 targeted households are using photovoltaic
systems. Because benefits are not being claimed beyond the estimated service life of each system,
700 participating households are removed from the calculations each year between 2017 and 2020.
Thus, the reference scenario emissions decrease between 2017 and 2020, and fall to zero in 2021.
Description of Calculation Methodology for the Project Scenario
There are no GHG emissions associated with the photovoltaic systems, therefore the project scenario
emissions are equal to zero. The project scenario emissions remain constant throughout the life of
the project.
Description of Calculation Methodology for the Actual Project
This information is not yet available.
3. GHG emission/sequestration data
(a) Reporting of GHG emissions/sequestration
(b) Additional information on GHG emissions/sequestration
Indirect or Secondary GHG Impacts (Positive and Negative)
This information is not yet available.
Factors That Could Cause the Future Loss or Reversal of GHG Benefits
Given the nature of this projectsubstitution of fossil fuel generated power with solar powerloss or
reversal of benefits that have been achieved is not possible. Projected emission reductions could
be lost if participants switch from using solar-powered electric lights back to kerosene lamps. In
addition, an extension of the electrical grid into solar-electrified rural areas could entice some
of the system owners onto the grid.
Strategy for Reducing the Risk of Future Loss or Reversal of GHG Benefits
The training component of the project puts in place the human infrastructure needed to ensure the
durability of the technology switch. The project's focus on training local individuals ensures
that technicians capable of not only installing, but also maintaining the solar-electric equipment
will be readily available to the end users, reducing the likelihood that users will switch back to
kerosene. Enersol plans to monitor system maintenance carefully.
While significant grid extension is not expected, Enersol will maintain contact with the Honduran
Planning Ministry and ENEE (Honduran electric company) to assure that solar-based rural
electrification efforts do not target communities slated for grid extension, should grid extension
plans come into place.
F. Funding of the AIJ project
1. Identification of funding sources
This information is not yet available.
2. Assessment of additional funding needs
Current or Planned Activities to Obtain Additional Funding
Enersol's overall JI project funding strategy is based on securing grant contributions and/or
investments from private and/or public sector JI-motivated sponsors. To attract sponsors, Enersol
will focus on components of the project that offer the greatest appeal. Enersol will make known the
various JI sponsorship and investment opportunities to prospective sponsors, either directly or
through collaborating agencies, individuals, and brokers.
The main JI sponsorship and investment opportunities include: grant contributions to fund training
and technical assistance and to capitalize Enersol's dedicated loan guarantee fund, the Fondo
Solar; and loans to expand the Fondo Solar.
Furthermore, Enersol is in the process of working to expand its Fondo Solar. At the time the
proposal was submitted to USIJI, a request for $100,000 of contributed equity to scale up the Fondo
Solar was before a U.S.-headquartered NGO, interested in renewable energy projects in developing
countries. Additionally, the manager of a large U.S. socially responsible investment fund expressed
interest in making a debt investment of $100,000 to scale up the Fondo Solar. These and other
private sources of debt and equity funding to expand the Fondo Solar are being pursued by Enersol.
G. Contribution to capacity building and technology transfer
Contribution to Capacity Building and Technology Transfer
The project will transfer energy-efficient solar electric technologies to Honduras. It will also
provide training opportunities for Honduran citizens to work as technicians, entrepreneurs, and
loan officers.
H. Recent developments, technical difficulties, and obstacles encountered
Recent Project Developments
This information is not yet available.
Technical Difficulties and Other Obstacles Encountered
This information is not yet available.
I. Additional information
Additional Information
None.
J. Annex
1. Host country acceptance of the AIJ project
Country/Project Title
Name, Title, and Government Agency of the DesignatedNational Authority
Date of Approval(day/month/year)
Honduras/Solar-Based Rural Electrification
Dr. Carlos A. Medina, Environmental Minister, State Secretary of Environment
