RURAL ELECTRIFICATION AND THE LOCAL ECONOMIC INTEGRATE SYSTEM IN MALI Berlin, 26 Februay 2013 Presented par Mahamadou K DIarra WORKSHOP MICRO- ENERGY INTERNATION

Presentation of MFC and the Group Nyetaa Overview of off grid energy in Mali Challenge "economics and feasibility of mini- grids/MFP", Proposition of economics durability-RE Nyetaa Shop- innovate concept for off-grid energy & access to credit OUTLINES PRESENTATIONS

Contribute to the active mobilisation of grassroot citizen for sustainable socio economic development in Mali Vision of MFC Nyetaa: MFC Nyetaa’s mission is to assist the Malian society towards a sustainable development. Mission The orientation strategic is focused to : 1.Promotion of good governance 2.Development of local economies 3.Environmental protection

Presentation of Mali Mali is a vast country located at the heart of West Africa It has an area of km2. In 2010, the population of Mali was estimated to be 14.5 millions of which more than 70% are living in rural area. Mali is an unlock country and Sahelian also, The energy profile of Mali is characterised by: An excessive exploitation of forestry resources, And heavy dependent on imported petroleum products In 2007, the total energy consumption was estimated to ktoe of which biomass account for 78% follows by petroleum product 18% and electricity 4% The consumption per habitant is estimated to 0,18toe, which is very low compared to the average in West Africa, which is 0,45toe. This situation highlights the energy poverty of the country.

Economic viability of the mini-grid Investment cost its around 500 USD/ Household Investment Public-Private for the AMADER (80% of investment cost) Investment of the PFM for non formal operators (Owner which low quality material, cost USD) Return in investment are very long term (5- 10 years) The bank system is not adapted to long term loan (short term liquidity) The cost of fuel and the transport cost from town to village The low income in rural area, and the limit of productive use of energy The rural tarrification is higher than national utility, and the bill payment is others challenge for the operator Limit of certain type of tarrification structure like pre-paid, the technical default of meter system,

Investment cost:500US$/Hld -Grant:80% -Ownership:20% -Others: loan 10-18% year Capacity of production: -Diesel engine:240KV -Hybrid (solar-diesel):50KWc -Biofuel engine:100KW Fuel consumption: 1,33US$/L Cost of fuel:80% of charge Material quality : Low level Tarrification system:average0,6 US$/KWh -Meter:98%, -Pre-paid:2% Current situation: high cost of fuel, fuel grant, reimbursement of bank loan, Investment cost:500US$/Hld -Grant:80% -Ownership:20% -Others: loan 10-18% year Capacity of production: -Diesel engine:240KV -Hybrid (solar-diesel):50KWc -Biofuel engine:100KW Fuel consumption: 1,33US$/L Cost of fuel:80% of charge Material quality : Low level Tarrification system:average0,6 US$/KWh -Meter:98%, -Pre-paid:2% Current situation: high cost of fuel, fuel grant, reimbursement of bank loan, Investment cost:50US$/lamp -Ownership:100% -Others: relative, partners Capacity of production: -Solar-Panel :5-10 W Fuel consumption:0 Quality: low quality, Depreciation : short life 3-10 months, Current situation: Good quality is very high price, limit of financial mechanism; very appreciated in remote area Investment cost:50US$/lamp -Ownership:100% -Others: relative, partners Capacity of production: -Solar-Panel :5-10 W Fuel consumption:0 Quality: low quality, Depreciation : short life 3-10 months, Current situation: Good quality is very high price, limit of financial mechanism; very appreciated in remote area Model -Rural Electrification-AMADER Model Rural Electrification- Off grid lamp

Economic of rural energy supply Promoting the productive use of energy Used more renewable energy technology for the energy production (hybrid system..) Granted the fuel cost for rural electrification Integrate the value chain and opportunity in links with the rural electrification (case of Nyetaa Shop-see next slide)

The Nyetaa- Shop Insure the income for the farmer Develop the productive use of energy Make Suitability of rural electrification Improve the local business inside the country Promote the local economic development Value chain for (shea butter, brick maize, fonio précuit) Rural area Energy equipment, Agriculture input, Short- middle loan Rural area Energy equipment, Agriculture input, Short- middle loan A Commercial & technical links between rural & urban area Urban area Access to natural & fresh product Short- middle loan Urban area Access to natural & fresh product Short- middle loan

The Nyetaa -Shop(suite) Access to energy (product & service) Access to finances (loan & TA) Access to Agriculture input (product & service) Access to market (support value chain) Actors involved “Nyetaa-Shop” Group Nyetaa Local cooperative Energy Committee Farmers committee Different product & service provide by the Nyetaa Shop

Merci ! Thank You !