Empresa Eléctrica Guaracachi S.A. (EGSA)

National Rural Electric Cooperative Association International, Ltd. (NRECA)

Prefecture of Oruro

Prefecture of Chuquisaca

GPU International, Inc. (GPUI)

Center for Sustainable Development in the Americas (CSDA)

Item

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Empresa Eléctrica Guaracachi S.A.

Name of organization (English)

Acronym (original language)

EGSA

Acronym (English)

Department

Function(s) within the AIJ project activities

Project development, project administration, technical assistance, financing

Street

Avenida Brasil y Tercer Anillo Intero, Casilla 336

City

Santa Cruz

State

Post code

Country

Bolivia

Telephone

591-3-464-632

Fax

591-3-465-888

E-mail

75142.2617@compuserve.com

World Wide Web-URL address

Surname

Scott

First name, middle name

John

Job title

General Manager

Direct telephone

Direct fax

Direct e-mail

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Name of organization (original language)or

Name of individual if unaffiliated with any organization

National Rural Electric Cooperative Association International, Ltd.

Name of organization (English)

Acronym (original language)

NRECA

Acronym (English)

Department

Bolivia

Function(s) within the AIJ project activities

Project administration, technical assistance

Street

Calle 14 de Setiembre = 5080

City

Obrajes, La Paz

State

Post code

Country

Bolivia

Telephone

591-2-782-820

Fax

591-2-789-631

E-mail

737762.1355@compuserve.com

World Wide Web-URL address

Surname

Smith

First name, middle name

Granville

Job title

Executive Director

Direct telephone

Direct fax

Direct e-mail

Surname

Kittleson

First name, middle name

David

Job title

Assistant Executive Director

Direct telephone

Direct fax

Direct e-mail

Item

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Name of organization (English)

Prefecture of Oruro

Acronym (original language)

Acronym (English)

Department

Function(s) within the AIJ project activities

Financing, government oversight

Street

City

State

Post code

Country

Telephone

591-52-41410 (or -30330, -50200)

Fax

E-mail

World Wide Web-URL address

Surname

Novillo Zeballos

First name, middle name

Tito

Job title

Direct telephone

Direct fax

Direct e-mail

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Name of organization (English)

Prefecture of Chuquisaca

Acronym (original language)

Acronym (English)

Department

Function(s) within the AIJ project activities

Financing, government oversight

Street

City

State

Post code

Country

Telephone

591-64-53105 (or -53106, -53107)

Fax

E-mail

World Wide Web-URL address

Surname

Márquez Ostria

First name, middle name

Jorge

Job title

Direct telephone

Direct fax

Direct e-mail

Surname

Martinez

First name, middle name

Hugo

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Name of organization (original language)or

Name of individual if unaffiliated with any organization

GPU International, Inc.

Name of organization (English)

(Same as above)

Acronym (original language)

GPUI

Acronym (English)

(Same as above)

Department

Function(s) within the AIJ project activities

Project development, project administration, financing

Street

One Upper Pond Road

City

Parsippany

State

New Jersey

Post code

07054

Country

U.S.A.

Telephone

(201) 263-6783

Fax

(201) 263-6646

E-mail

jbarrigh@gpuint.com

World Wide Web-URL address

Surname

Torpey

First name, middle name

Jim

Job title

Direct telephone

(973) 263-6376

Direct fax

Direct e-mail

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

Item

Name of organization (original language)or

Name of individual if unaffiliated with any organization

Center for Sustainable Development in the Americas

Name of organization (English)

(Same as above)

Acronym (original language)

CSDA

Acronym (English)

(Same as above)

Department

Function(s) within the AIJ project activities

Project development

Street

1400 16th Street N.W., Suite 210, Box 27

City

Washington

State

District of Columbia

Post code

20036

Country

U.S.A.

Telephone

(202) 588-0155

Fax

(202) 588-0756

E-mail

csda@igc.apc.org

World Wide Web-URL address

Surname

Figueres

First name, middle name

Christiana

Job title

Executive Director

Direct telephone

Direct fax

Direct e-mail

Surname

Hambleton

First name, middle name

Anne

Job title

Direct telephone

Direct fax

Direct e-mail

Sector(s)

Energy

Primary activity(ies)

Alternative energy generation (solar)

Country

Bolivia

Exact location (city, state, region)

Oruro and Chuquisaca Departments (In Oruro, the communities include Ayllu Tunupa, Lakasa, Ayllu Yaretani, Salinas de Garci Mendoza, and neighboring communities in the Ladislao Cabrera Province, with the option of including the communities of Tambo Quemado, Lagunas and Sajama in the Sajama Province, and Pazna in the Poopo Province. The specific communities in the Chuquisaca have not yet been identified.)

Project starting date (month/year)

October 1997

Project ending date (month/year)

December 2017

Project lifetime (years)

20 years 3 months

Current stage of project

In progress

This project will finance and install photovoltaic (PV) units of 48-55 watts in 400 households in the Oruro and Chuquisaca Departments of Bolivia, which are not serviced by the national electricity grid system. The PV units will be used primarily for residential lighting, and will displace diesel wick lanterns. The project’s GHG benefits accrue from the avoided emissions of CO₂ that would be generated by diesel combustion in the absence of the project. The PV units will be installed over a three-month period, and will generate GHG benefits throughout their anticipated 20-year lifetime.

GPUI, EGSA, and the Prefectures will co-finance the installation of the PV systems. A GPUI proposal submitted in June 1997 stated that the Prefectures would cover half of the cost of each unit, and GPUI would provide loans to households to cover the remaining costs. However, a new government has come to power in Bolivia and the terms of financing are being renegotiated. NRECA will procure and install the equipment and provide training to local service technicians.

The proposed project builds on the United States Agency for International Development’s (USAID’s) Electrification for Rural Development (ESD) project, and is intended to test the commercial feasibility of PV technology in rural areas of Bolivia. If the project proves successful, a second, much larger project will be initiated.

For 400 units, the total cost of installation, taxes, and shipping will be $286,000. The Prefectures of Oruro and Chuquisaca will subsidize part of this cost. Revenues equal to half of the cost will be generated by the sale of the PV systems to participating households. EGSA will provide loans via NRECA to assist households with purchasing PV systems.

Party(ies) that will be monitoring project activities

NRECA, EGSA, the Prefectures of Oruro and Chuquisaca, and PV system users

Party(ies) that will be externally verifying project results

PRONIC (the Bolivian National Joint Implementation Program), and additional parties that have not yet been identified

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 operating compared to number installed

Information on the use and performance of PV systems will be provided by the PV system users, since they have a direct financial self-interest in assuring the continued operation of each system. The number of PV systems operating will be compared to the number of PV systems installed, and the project’s GHG benefits will be reevaluated accordingly.

NRECA, EGSA and the Prefectures of Oruro and Chuquisaca will conduct periodic site visits to check on the status of the project. A specific schedule for site visitation and project monitoring has not yet been completed, but the goal of monitoring will be to identify successful and problematic project characteristics in order to adjust future project designs.

The external verification protocols are still under development. All project participants have certified that they will permit third-party verification of project results by "internationally qualified parties." PRONIC will be involved in coordinating external verification activities.

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):

In the proposal, the developer indicates that the project is consistent with the Government of Bolivia’s Rural Energy Strategy, which seeks to create financial and institutional mechanisms that promote the sustainable development of rural electrification projects. In addition, the financing provided by the Prefectures is consistent with Bolivia’s Law of Popular Participation, which allots funding to departmental governments to cover the cost of self-determined development priorities. According to the developer, lighting has been designated as a priority issue in both Oruro and Chuquisaca. The developer also indicates that the process of selecting the participating communities is in compliance with the Plan Indicativo de Electrificación Rural de Bolivia, Section 4.1, "Rol del Estado Central."

The solar panels being installed will typically provide for basic lighting and one radio. In the absence of this project, radios would be operated with dry cell batteries, the toxic contents of which contaminate soils and water sources. Furthermore, replacing diesel with solar panels for lighting improves indoor and outdoor air quality by eliminating emissions such as CO, NO_x , SO₂, and particulates. The project will also reduce spills occurring from the transport of diesel fuel to rural areas.

A potentially negative environmental impact of the solar panels is the improper disposal of lead-acid batteries used to store solar energy. To mitigate this impact, NRECA is working with Baterias de Bolivia (Batebol), a battery recycling firm, and is experimenting with mechanisms to implement recycling programs.

Electric light bulbs will provide better lighting than diesel wick lanterns and candles. In homes, this means better lighting for nighttime study and sewing. In the future, the expansion of the project could lead to better lighting in schools and public assembly halls, which could support community participation in local decision-making processes. In health centers, electric light bulbs would mean better lighting for operation after dark.

Electric light bulbs will improve lighting for nighttime economic activities, such as cottage industries, farm-related activities, and rural stores. The installation and maintenance of PVs, and eventually the manufacture of key components, may create new employment opportunities in the local communities.

Site number (order of presentation in this report)

1 of 1

Site name/designation

Departments of Oruro and Chuquisaca

Project sector

Energy

Primary activity(ies)

Use of diesel wick lanterns for lighting

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

The Departments of Oruro and Chuquisaca have several small, isolated communities which are not serviced by the national electricity grid system. These communities use diesel-fueled wick lanterns for lighting. This situation is projected to remain unchanged during the course of the project. Under the reference scenario, 400 of these households are assumed to generate GHG emissions from diesel combustion over a period of 20 years and 3 months.

Primary activity(ies)

Alternative energy generation (solar)

Description:

Under the project scenario, PV systems ranging from 48-55 watts will be installed in 400 households in rural Oruro and Chuquisaca. These units will be used to provide solar-powered lighting, displacing the use of diesel-fueled wick lanterns, for a period of 20 years following installation. Half of the units will be operational for three months in Year 1, and the other half will be operational for one month in Year 1.

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

Site number

1 of 1

Project sector

Energy

Under the reference scenario, CO₂ emissions are generated by the combustion of diesel in wick lanterns. It is estimated that, in the absence of the project, 400 households will use diesel-fueled wick lanterns for a period of 20 years and 3 months.

A typical rural household in Bolivia uses approximately 60 liters of diesel fuel per year for lighting. Each liter of diesel fuel combusted produces 2.71 kg of CO₂ (= (1 liter diesel) * (1 barrel/159 liters) * (1 t/7.46 barrels) * (43.33 TJ/1,000 t) * (20.2 t C/TJ) * (1,000 kg/t) * (44 kg CO₂/12 kg C)). A typical rural household in Bolivia produces 162.6 kg of CO₂ per year (= 2.71 kg CO₂/liter * 60 liters/year) by burning diesel fuel for lighting. The 400 PV units (one per household) displace 65.0 metric tonnes (t) of CO₂ per year (= 400 units * 162.6 kg CO₂ / unit * 1 t/1,000 kg). Over the 20.25 year life of the project, 1,316 t of CO₂ will be generated (= 65.0 t of CO₂/year * 20.25 years).

There are no GHG emissions associated with the operation of PV systems. Therefore the project scenario emissions from the operation of PV systems are equal to zero. This assumption remains constant throughout the life of the project.

It is not clear if this project will be undertaken, especially with a new government in Bolivia that wishes to renegotiate project financing. However, for the purposes of calculating greenhouse gas benefits, it is assumed that, as the developer’s proposal states, in Year 1 of the project, half of the units are installed by October 1 and the other half are installed by December 1. Therefore, project scenario emissions in Year 1 total 5.42 t CO₂ (= 162.6 kg CO₂/unit-yr * 200 units * 2/12 yr * 1 t/1,000 kg) from the continued use of diesel in half of the households during October and November.

Assuming the PV units will operate for exactly 20 years, half of the PV units will cease to function in the ninth month of Year 21, and the other half in the eleventh month of Year 21. It is assumed that rural households will revert to using diesel wick lanterns. Therefore, there will be CO₂ emissions during the last three months of Year 21 when rural households are using diesel wick lanterns. The CO₂ emissions in Year 21 of the project will be 10.84 t (= (162.6 kg CO₂/unit-yr * 200 units * 3/12 yr * 1 t/1,000 kg ) + (162.6 kg CO₂/unit-yr * 200 units * 1/12 yr * 1 t/1,000 kg)).

This information not yet available.

This information is not yet available.

The GHG benefits generated by the substitution of fossil fuel generated power with solar power cannot be lost or reversed. However, several factors could prevent the full realization of the anticipated GHG benefits. For example, extension of the electricity grid into rural areas could influence owners of solar PV systems to switch to more conventional energy. In addition, improper sizing or improper maintenance of the PV systems could cause system failure, leading owners of the systems to revert to using diesel and candles.

According to the Government of Bolivia, there is almost no possibility of grid extension to the areas contemplated in this proposal in the foreseeable future.

The possibility of improper maintenance has been reduced by requiring recipients to pay half of the purchase cost of the units, rather than providing the systems as gifts through donations, thereby giving them a financial incentive to maintain the units and avoid reverting to the use of diesel lanterns. In addition, NRECA has implemented a training program for service technicians so that participants will have access to repair services.

Funding Source

Country of Funding Source

Amount

($US)

(%)

Prefectures of Oruro and Chuquisaca

EGSA loans provided via NRECA (to be repaid by rural households)

Total

No additional funding will be sought for this phase of the project, but rural households are expected to repay EGSA loans ($357.50 per household), which cover 50% of PV system purchase, shipping, and installation costs.

This project will transfer energy-efficient solar electric technologies to Bolivia. Eventually, key parts of the systems will be produced in Bolivia. The project will also contribute to capacity building because NRECA will train local technicians to install and maintain the systems.

This information is not yet available.

This information is not yet available.

None.

Country/Project Title

Date of Approval(day/month/year)

Bolivia/Rural Solar Electrification in Bolivia: Pilot Phase

Moises Jarmusz Levy, Ministry of Sustainable Development and the Environment