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By: Kjetil Roine | 31 October 2012 |
In any investment the pay-back time is essential for assessing the quality of it. How long will it take before I get my money back? The accumulated cash flow is negative initially, but will become positive once the accumulated revenues from the investment have become larger than the invested capital.
 
The same goes for GHG emissions. Any renewable energy or energy efficiency project implies initially higher emissions than if you had done nothing. Consider a solar home system (SHS) like Differ is currently running in Kenya. Any preparations before the SHS is installed and the generation of electricity that substitutes for instance the use of kerosene is actually started imply net GHG emissions. Travel, production of the solar panel, production of the batteries, of the electrical goods to be installed and used are some of the activities that initially inc...
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By: Kjetil Roine | 12 October 2012 |
ENERGY EFFICIENCY
Despite turbulence in the global economy, many countries in Asia currently face significant economic growth. It’s an undisputable fact that economic growth requires energy. But millions of people either lack electricity completely or are faced with an unreliable and unstable electricity supply, which may prevent the economy from growing even faster. What can be done about this?

One solution is to become more energy efficient – using less energy to obtain the same service, function or target. Differ’s strategy is to scale-up small scale carbon reductions, and one of the small-scale areas we are looking into is how to improve energy efficiency in buildings. Buildings in general account for around 30% of the total electricity consumption in a country. In tropical and sub-tropical countries, up to 60% of the electricity consumption in buildings is related to cooling. Hence, be...
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By: Anders Skogen | 9 August 2012 |
RENEWABLE ENERGY TECHNOLOGIES
Investing in a foreign country can be a daunting task in more than one respect. How comfortable are you part-taking in the race to bring expensive technology to developing countries? New laws, different customs, strange politics, obscure client demands – everything could be different.
 
Including how you´re burgled. Not everything is as serious as being systematically robbed of land by the Zimbabwean government. Take Ghana, where a minister recently was accused of stealing electricity poles. As can be expected, his good followers claim this is a campaign to “smear [the person] with dirt and tarnish his reputation” ahead of the election. Without applying too much prejudice, I can believe both plaintiff and defendant. More importantly, none of them increases the app...
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By: Kjetil Roine | 7 June 2012 |
RENEWABLE ENERGY TECHNOLOGIES
Why the effective management of transaction costs (TCs) should be a top-priority for project developers in developing countries.

The costs of installing small-scale renewable energy production capacity are obviously not only limited to engineering, procurement and construction (EPC). Rather, on the contrary, a significant share of the total costs for investors and project developers is also related to the costs of climbing the regulatory hurdles and requirements in order to get all the permits needed to get started. These are transaction costs (TCs) and are most often much harder to forecast than the more standard “technological” project costs. How large are normally the TCs and how can they most effectively be managed?

Transactions costs appear in every country and sector. They will always be there – in transparent and open regulatory syste...
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By: Kevin Rooney | 11 April 2012 |
RENEWABLE ENERGY TECHNOLOGIES
There are many factors that can contribute to the success and scale-up of renewable energy technologies (RETs) in developing countries. The factors and their importance may vary from country to country. Which factors, however, seem to be most critical for success of RET projects across developing countries? Based on academic research and the preliminary results of a survey completed by small-scale RET companies in developing countries, here is my ranked list of critical success factors.

1. Technology: The success of a technology depends on both its ability to match the local resources (such as energy sources and infrastructure) and its ‘fit’ with the type of demand in the given market. A thorough assessment of local resources and energy needs is therefore crucial for success. Also crucial is technology transfer for systems that have prove...
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