Activities Implemented Jointly Under the Pilot Phase
A. Description of the AIJ project
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