1. UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE IN-SESSION WORKSHOP ON CLIMATE CHANGE MITIGATION PROMOTION OF RENEWABLE ENERGIES IN ISOLATED RURAL AREAS IN PERU Teodoro Sanchez Campos Energy Programme Manager ITDG- Office for Latin America

2. Intermediate Technology Development group (ITDG) Founded in 1966 by EF Schumacher, ITDG is an international group of development organisations with charitable status. Its head office is in the UK, with regional and country offices in Africa, Asia and Latin America.

3. Rural Energy in Peru Demand and Resources High concentration of people in the Andes and Upper Jungle Family income, US$ 300 to US$1500 yearly Good potential of hydro resources in the Andes and Upper Jungle Rural people of the Coast have better opportunity to get electricity from the grid. In the lower Jungle the resources are based on PV, Biomass and river current, the last one in small quantities

4. Lack of financial mechanisms Lack of affordable technology Lack of appropriate legal framework Lack of local capacity Financial model with public and private participation Appropriate technology development and transfer Build the manufacture capacity Appropriate management schemes Build local capacity Promotion of an appropriate legal framework ITDG strategy Clean energies: small hydro, wind, solar, biomass BARRIERSSOLUTIONS

5. I – COST REDUCTION/APPROPRIATE TECHNOLOGY Low cost intakes Low cost channel Low head turbines River current turbine Motor as generator SMALL HYDRO

6. Hualgayoc, August 2002 Huacho, may 2001 I – COST REDUCCTION/APPROPRIATE TECHNOLOGY SMALL WIND ELECTRCITY GENERATORS

7. SOLAR PV I – COST REDUCCTION/ APPROPRIATE TECHNOLOGY

8. “Use of rise husk for brickmaking, north of Peru I – COST REDUCCTION/ APPROPRIATE TECHNOLOGYBIOMASS

9. RESULTS 27 SHPP installed (more than 1.6 MW) US$ 900,000 allocated 5,000 rural families connected to electricity About US$ 3.5 million leveraged Increased the capital to US$ 700,000 More than 200 micro enterprises created or strengthened II- FINACIAL MODELS REVOLVING FUND FOR THE INSTALLATION OF SMALL HYDRO SCHEMES Initial capital US$ 400,000, loans from US$ 10 to 50 thousand, interest rate 10% yearly, recovery periods 1 to 5 years

10. III- MANAGEMENT MODELS ITDG/ESMAP MODEL PROPIETARIO USUARIOEMPRESA Contrato de concesión Pago por la concesión Contrato de servicio Pago por consumo MANAGEMENT MODEL ASAMBLEA DE USUARIOS (Organismo fiscalizador del servicio)

11. Management of SHPP ManagementMicro Enterprise Tariff scheme US$/kWh Block I Block II Block III kWh Training (CEDECAP) Operators Administrators Leaders and authorities users III- DEVELOPMENT OF MANAGEMENT MODELS

12. SHPP AND PRODUCTIVE USES

13. GENERAL CONCLUSIONES The cost of equipment and parts goes down to 1/2 up to 1/5 of the conventional costs The cost of operation and maintenance using local human resources goes down to 1/5 up to 1/10 of the conventional costs. The sustainability of the schemes improves greatly because of the direct intervention of local people on management and operation. The strategy allows the building of the local capacity not only for energy but for other activities For faster dissemination, it is necessary the intervention of the government. The strategy is replicable