1. Alliance for Rural Electrification 2008 EUROPEAN LPG CONGRESS LPG – RES: A Win-Win Partnership 29-30 May, 2008 - Milan, Italy

2. 2008 European LPG Congress May 29-30, 2008 Milan 2 I. Alliance for Rural Electrification (ARE) Alliance for Rural Electrification (ARE)  The Alliance for Rural Electrification (ARE) is a non-profit international organization that was created in 2006 in response to the need for access to sustainable electricity in the developing world and to facilitate the involvemente of ARE members in the emerging rural energy markets  ARE was founded by the most important European renewable energy industry associations and is currently integrating renewable energy players active in the field of rural electrification

3. 2008 European LPG Congress May 29-30, 2008 Milan 3  Because of the potential for renewable energy and LPG to be combined in a hybrid power system.  This is one of the most suitable technologies for rural electrification I. Alliance for Rural Electrification (ARE) Why are we here?  There is a clear convergence of interests between the renewable energy sector and the LPG sector…

4. 2008 European LPG Congress May 29-30, 2008 Milan 4 I. Alliance for Rural Electrification (ARE) Why it makes sense? 1.6 billion people, representing more than one-quarter of the world population, do not have access to electricity in their homes,

5. 2008 European LPG Congress May 29-30, 2008 Milan 5  There is a significant potential in the emerging off grid electricity markets. The undergoing shift in investment patterns towards a greater reliance on private investments, the ongoing power sector restructuring in many developing countries, as well as a tendency to change national policies to facilitate renewable power generation, are increasingly opening up new markets  Taking PV as an example: I. Alliance for Rural Electrification (ARE) Why it makes sense? “PV Off-grid habitation“: 161 MWp; growth rate: 17% “PV Off-grid industrial“: 133 MWp; growth rate: 15% * Market size 2007 according to Navigant Consulting 2006 PV Off-grid equals only 3% Public Private Commercial Industrial

6. 2008 European LPG Congress May 29-30, 2008 Milan 6  There are still a number of challenges to face in order to reach a fair level play scenario within the field of rural electrification, such us: -Lack of appropriate financing instruments on the supply and demand side to cover the high initial investment and to enable rural population to afford electricity and to develop productive uses of electricity. -Absence of RES within national and local rural energy planning and, consequently, discouragement of decision makers to push forward RETs. -Lack of awareness and information about the technology and its benefits prevents responsible choices about energy services. I. Alliance for Rural Electrification (ARE) However…

7. 2008 European LPG Congress May 29-30, 2008 Milan 7  Raise and increase awareness of the potential of renewable energy as one of the most suitable solutions to provide electricity, notably within rural areas  Accelerate and support the deployment of renewable energy technologies within developing countries and increase market opportunities for the industry  Stimulate private sector involvement (technically and financially) in the developing world  Serve as a platform/meeting point for all renewable energies to generate a common approach towards rural electrification  Generate financial resources for rural electrification I. Alliance for Rural Electrification (ARE) Therefore….our objectives

8. 2008 European LPG Congress May 29-30, 2008 Milan 8 I. Alliance for Rural Electrification (ARE) and activities Generation content Working Groups Communicat & Dissemination Techolog Solutions Market Analysis Financing Schemes Position Papers Brochures Articles Newsletter Press releases Network contacts Events Website

9. 2008 European LPG Congress May 29-30, 2008 Milan 9  LPG is a modern source of decentralized energy  Clean  Portable  Storable  Efficient  Available  Polyvalent II. LPG & RES LPG – RES: benefits for rural areas  LPG is already available in most low population density areas in Europe and in the developing world.

10. 2008 European LPG Congress May 29-30, 2008 Milan 10 II. LPG & RES LPG – RES: benefits for rural areas The advantages of LPG can be combined with those of RES:  On site  Flexible  Easy O&M  Environmentally sound  Optimizes natural resources

11. 2008 European LPG Congress May 29-30, 2008 Milan 11 II. LPG & RES LPG – RES: benefits for rural areas  The use of LPG power generators as a backup for intermittent RES (PV, wind, micro-hydro) is the reliable solution with the lowest possible impact on the environment and human health.  There are several possibilities to adapt the size of systems to the local needs of end-users.

12. 2008 European LPG Congress May 29-30, 2008 Milan 12  Used as a fuel for the power generator, LPG is a clean back- up for high loads or low RES availability  The storability of LPG means battery use is limited II. LPG & RES How does it work?

13. 2008 European LPG Congress May 29-30, 2008 Milan 13  Reliable grid-quality electricity  Wide range of applications (village electrification, professional uses, back up public grids, etc)  The best replacement for diesel fuel based systems  Cost-competitive on a life cycle basis compared to extension of grid or diesel based systems II. LPG & RES Is there a niche market for hybrid systems? Economical comparison: diesel vs. RE Off-gridEconomial comparison: grid extension vs. RE Off-grid Yes!

14. 2008 European LPG Congress May 29-30, 2008 Milan 14 WHY?  Promising market opportunities for both sectors  LPG can provide presence and experience within rural areas; a wide distribution network, capacity building (rural sociology)  ARE can promote LPG as a clean solution to replace diesel as a back up and provide the framework to develop integrated LPG-RES hybrid systems HOW?  Membership in ARE  Development of joint projects  Development of joint market studies ADDITIONAL SUGGESTIONS ARE MORE THAN WELCOMED ! II. LPG & RES Should we work together? Yes!