IXL Social Enterprise Case Studies Energy January 2012 | Page 7

Revolutionizing the way to make energy affordable for everyone For example, in Malawi, a SolarAid survey showed that 62 percent of households use kerosene lighting: 41 percent use hurricane lanterns and 21 percent use homemade lanterns. The same survey also showed that 41 percent of locals were using battery-powered lanterns or flashlights, and 21 percent use candles.11 Nine percent reported using firewood as a lighting source, presumably both as a secondary output from a fire used for cooking, and by burning sticks for short-term lighting. People with access to a mobile phone also sometimes use the phone’s screen for temporary illumination. Fuel and batteries for light are a major drain on the household budgets of potential customers. A typical household in Malawi, for example, spends more than a third of its monthly income— about MK5320/month or US$3012 —on lighting and power. Half of that is spent on kerosene for lighting. For the head of a typical household, an hour’s work pays for 1.4 days of light with a homemade kerosene lantern and 3.5 days with a hurricane lantern. In the U.K., by comparison, an hour’s work pays for 458 days of light from the electrical grid.13 As demand for hydrocarbons and energy continues to increase around the world and in Africa, the price of kerosene is expected to rise.14 Higher prices will require African households with no access to the electrical power grid to allocate more of their income to lighting, reduce their use of lighting, or seek alternative sources of illumination. Solar-powered lighting is not widespread in Africa. Large macrosolar installations, with rooftop-sized panels that generate enough power to light several rooms or small appliances, can cost over US$5,000,15 and are therefore used primarily to power offices or staff housing of governments, international non-governmental organizations (NGOs), and multinational corporations. Single, micro-solar lamps, powered by a panel no larger than a piece of paper, are generally not available in retail markets, and despite some efforts to raise awareness, most Africans remain oblivious to their existence or value. Access to light also means access to energy Every source of light relies on a source of energy that has been collected, concentrated, stored, and delivered to the user. Such energy is useful for a variety of purposes beyond the generation of light—but the use depends on the form in which the energy is stored. Energy stored in the form of kerosene fuel is used for cooking and heating in addition to its use in lamps. Gasoline and diesel fuel are widely available as well, and can easily be siphoned from automobile or truck gas tanks when needed. Demand for these uses contributes to the wide availability of kerosene, gasoline and diesel in African villages, towns and cities. In rural and peri-urban communities in Africa, one of the most prominent uses of electrical energy is charging mobile phones. Phones have become nearly universal in Africa, but the reach of service coverage greatly exceeds the area where individuals have easy access to the electrical grid. This need is being met in many places by using batteries. Large batteries can be charged in areas with grid connections and then transported by car or bicycle to remote locations where entrepreneurs charge for the opportunity to recharge phones, lights, and other devices. EGG-energy, an independent power distributor, for example, is running a pilot in Tanzania in which power from the grid is packaged into portable, rechargeable 12V batteries that can power lights, radios, and mobile phones for a household for about three nights. The batteries are rented in exchange for a subscription fee and once depleted, can be exchanged for a fully charged battery by paying a small swapping fee at a nearby EGG energy charging depot. To make access easy, EGG-energy has partnered with local convenience stores (“dukas”) and delivery companies to provide pick-up and drop-off services.16 Many independent entrepreneurs use a similar business model with re-purposed car batteries. Conventional consumer batteries (e.g. AA or D size batteries) are used to power small portable radios that many households use for entertainment and information, even in remote villages with little access to technology. 7