by Francesca Francia Josiah Johnston Andrea Silverman Enhancing Portable Lighting Services in Rural Nicaragua ER 291 Spring 2008

2 The Context for Rural Lighting Earth at Night source: NASA

3 The Context for Rural Lighting Central America at Night

4 Bluefields

5 The Context for Rural Lighting Central America at Night Bluefields Kahkabila

6 The Context for Rural Lighting Central America at Night Bluefields Kahkabila isolation poverty underdevelopment

7 School Home blueEnergy: hybrid wind-solar energy generation Home Electrification Kit

8 Goals Philosophical Enhance battery recharging services & lighting services in rural Nicaragua Minimal Survey user needs and product availability Evaluate: 1. Introducing efficient portable lighting 2. Repairing flashlights 3. Disseminating BoGo lights 4. Establishing rechargeable battery business Optimal Prototype low lighting products Repair manual for LED flashlights Philosophical Optimal Prototype complete, but low effect on house expenses To be done

9 User Surveys - Kahkabila Administered by blueEnergy and URACCAN –Currently energy use and lighting –Needs, preferences, impressions –Demographics

10 Preliminary Survey Results Received 16 of 100 datasets on Monday Candles, Kerosene Lanterns and Flashlights Illumination reported as a priority 80% (of 16) homes report using flashlights –Tigerhead brand –D batteries –Use 30 minutes or less / day –Lifetime: months

11 Preliminary Survey Results Batteries –D batteries –Disposal: burn or throw outside home –Rayovac brand: cheapest and/or only brand available –Over 85% reported they would use rechargeable batteries if available

12 1: Promote Efficient Flashlights Product Survey: Efficient lighting locally available Higher upfront cost Lower levelized annual cost Incandescent ~$1.25 local 1-3 month lifetime LED ~$2.90 Bluefields 1-3 month lifetime

13 2: Repair Broken Flashlights Time: 5 minutes, Cost: $1.25

14 2: Rebuild Broken Flashlights Time: 1/2-1 hour, Cost: 5 ¢ Materials & Tools Rebuilt Flashlight

15 3: Disseminate BoGo Light Incandescent ~$1.25 local 1-3 month lifetime LED ~$2.90 Bluefields 1-3 month lifetime BoGo ~$15 retail >2 year lifetime

16 4: Rechargeable Battery Business Operations overview PICTURE – Josiah

17 4. D Battery Recharging Appears Economically Viable 100 recharges -> 1.9 kWh

18 Business Model

19 Players in the Economy Consumer Environment Bank / Foundation

Consumer Perspective $ 215 $ 206 $ 192 $ 205 Assume: 2 flashlights/HH, 10 hours flashlight use/wk Orange values indicate annual savings

Efficient lighting = Big savings on lighting expenditure Consumer Perspective

22 Vendor Perspective 5 existing informal store owners in Kahkabila 2 scenarios if efficient products & rechargeable batteries are introduced: VendorCustomer Customers apply savings to buying more batteries Customers save $ Vendor sell more recharg. Batteries at higher % markup Vendor sells fewer batteries 1212

23 Vendor Perspective BEST SCENARIO Baseline $196 profit from Disposable batteries + Incandescent sales Year 1 Old products + New Rechargeables + LED + Bogo sales Year 2 Onwards $266 profit from Rechargeables + LED + Bogo sales = COMPARATIVE BENEFITS No upfront investment Increase income by $70/year No traveling time

24 blueEnergy Perspective Initial Costs: $1,100 Recharger: $70 Batteries: $1,030 Annual Revenues: $1,133 (Assumes 100 recharges / week)

25 blueEnergy Perspective (Assumes 100 recharges / week)

tCO 2 e/ 100 Batteries: EIOLCA.net $31 / tCO 2 e: PointCarbon.com, 4-5/08 Indirect Greenhouse Gas Reductions from Rechargeable Batteries

27 Conclusions: Several Paths to Community Benefits LED flashlights low levelized cost low upfront cost competitive with BoGo if maintained BoGo lights: low levelized cost low maintenance high upfront cost Rechargeable Batteries extends service without initial cost requires minimal sales volume

28 Next Steps / Future Work Process incoming survey data –Determine if assumptions still hold Summer travel –Supply lines –Battery Recharging –Find interested vendors –Introduce efficient lights Ongoing –Efficient area lighting –blueEnergy leases Home Electrification Kit

29 Thank You… Blum Center, Energy Foundation Ashok and Susan Christian Casillas Mathias Craig and Ben Hyman, blueEnergy Flavio Feferman Howdy Goudey Dan Kammen