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< prev - next > Energy CA_Toolkit PAC SmartFinal (Printable PDF)
implementation of the scheme. Productive end uses are actively promoted through work with users
to identify electricity businesses and trainings. Careful recruitment of personnel from the local
community for roles in the LPE and Assembly is important to ensure non-partisan and responsible
management of the system. Coordination with local and national government encourages an
enabling environment through reduced regulatory problems.
Finance mechanism
Practical Action established a finance scheme for the programme that used a revolving fund to
accelerate implementation of projects. An IADB loan to PA totaling US $1 million was used as a
seed fund for a revolving loan. This has been leveraged to US$4 million, making a total investment
of US$5 million for the programme. PA is administrator of the revolving fund and will pay back the
loan to IADB in full.
An individual micro-hydro project is financed through a combination of loan and grants. Grants are
sourced from a variety of local sources including small amounts of up-front capital from local
investors, government funds and national NGOs. The loan is committed to the project providing the
grants have been secured. The loans range from US$10,000 to US$50,000, issued to the owner
with an interest rate of 10% and a 5 year pay back. In the local government owner model, the loan
is repaid from revenue from the scheme and internal
government funds. In the business owner model the loan
is repaid from revenue from the scheme and additional
contributions from the owner.
The revolving fund has enabled up to 7 micro-hydro
projects to be implemented at any one time. A challenge
has been to secure collateral for loans to both the local
government and private entities. This has required
securing property titles for individuals and agreements
with local government.
Livelihood Benefits
More than 300 small enterprises and services have been created including milk chilling, milling,
carpentry, ice-making, tools repairs, dental services, shops, cafes, internet services, battery
charging and others.
More resources available in the Programme Impact & Learning PPE
ƒ Kenya micro hydro case studies
2.3.2. Water pumping
Water power can also be harnessed to pump water for a potable supply or
irrigation. Hydraulic ram pumps operate automatically, using a large amount of
water falling through a low height to pump a small amount of water to a much
greater height. Appropriate models are available that can provide a reliable and
affordable of supply for rural areas. 22 Water current turbines use the energy in a
Renewable Energy to Reduce Poverty in Africa