Our Operational Platforms

We either build our own operational platforms to manage our investments or we strengthen our partners capacity to implement projects we finance.

Most often, our on-ground partners are NGOs, however, invariably we favor business-like relationships though commercial incentive-based arrangements operating under revenue models that assure financial sustainability.

 

COOKSTOVES 

Nearly 3 billion people in the world use traditional cookstoves or open fires using solid fuels. We are a leader in the movement to promote adoption and use of cleaner, healthier, more efficient improved cookstoves (ICS) focused especially on rural and peri-urban households. Using social impact investment resources and carbon financing, we work with our on-ground partners and through our own operational platforms to distribute cleaner burning more efficient Cookstoves and improved kitchen ventilation to base-of-the pyramid households. 

Our objectives are:

  • Reducing deforestation and land degradation and supporting conservation agriculture by integrating efficient stoves that burn small diameter branches and stem-wood from nitrogen fixing trees on farm into a sustainable farmer livelihoods and food security strategy.
  • Improving maternal and child health and wellbeing by reducing exposure to toxic substances and particulate matter (PM 2.5) in biomass smoke.
  • Reducing drudgery for women and girls through reducing or eliminating the need for gathering larger diameter firewood for three-stone fires kilometers from their own villages, freeing up time to use according to their own preferences.
  • Mitigating climate change through reduced greenhouse gas emissions, including from unsustainable harvest of woody biomass, avoided black carbon and methane emissions from inefficient open fires. 


Summary Impact: Improved Cookstove vs. Open Fire

  • Reduces household expenditures for firewood in urban areas 50%-80%.
  • Reducing demand on natural forest in and around agricultural landscapes by making efficient the combustion of small diameter twigs, branches and crop residues that are not suitable for three stone fire cooking.
  • Reducing the time spent by women and girls gathering firewood, freeing up time for their preferred activities, including for attending schools, health clinics and small-scale income earning activities.
  • Reducing the incidence of child pneumonia which is amongst the largest cause of infant mortality in Africa, caused mostly by biomass smoke exposure in poorly ventilated spaces.
  • Women cooking over an open fire have exposure to pollutants the equivalent of smoking two packs of unfiltered cigarettes per day.
  • Over its 5-7 year lifetime, an improved cookstove supplied by CQC in rural Africa saves more CO₂ than taking a car off the road in the USA for a year.
  • Lowers overall greenhouse gas emissions by 60-80%.

Stoves & Health

We have been working since 2013 on the development of a suite of women’s and children’s health and wellbeing products to be presented to development impact financiers, public and private, for procurement under a payment on delivery as part of a growing trend towards results-based-financing in development finance.

We conceived of a forward market for health outcomes, measured as Averted Disability Adjusted Life Years (ADALYs) from the use of clean cookstoves and improved kitchen ventilation to raise investment funds in cleaner healthier cooking for families dependent on open fires and inefficient biomass stoves for cooking.
 
To test this market vision, at the World Bank’s invitation, we joined the World Bank as an advisor for a “proof-of-concept” study in Laos PDR to determine if super clean cookstoves provided a cost-effective solution to reducing the burden of disease from inhaling the smoke of open cooking fires.

Working with UC Berkeley’s Kirk Smith, leaders of Berkeley Air Monitoring, SNV Laos, the Laos Institute for Renewable Energy, Geo-Sys, under the guidance of the Inter-Ministerial Committee on Cookstoves, we oversaw a rigorous assessment of the acceptability of forced draft “gasifier” stoves in rural households in Savanakhet Province. The results showed the stove to be strongly accepted by Laos women in terms of improved amenity in cooking, and that household air pollution was reduced by 75% from their sustained use. Using measures of personal exposure of women cooks before and after the super clean stove intervention, the the resulting ADALYs was shown to be a cost effective means of reducing the the burden of disease from household air pollution, the single biggest cause of death and disability in Laos. ADALY’s are expected to cost between 1 and 1.5 times GDP per capita from large scale superclean stove distribution.

We are working with the World Bank to prepare a 50,000 superclean stove project in Laos for investment in 2017. In parallel, we and The Gold Standard Foundation (GS) have joined hands to prepare a methodology for quantification, verification and issuance of ADALYs from cleaner burning stoves and improved kitchen ventilation. The GS ADALY Methodology is expected to be published late in 2016.

In Malawi we have designed a 60,000 improved stove and kitchen ventilation project in collaboration with its partner, Total LandCare. This project is under review by potential donors and financiers for funding in 2017.

In all such climate and health projects, we plan to monitor, verify and issue all of ADALYs, Carbon Credits, Black Carbon reductions and quantified gender benefits.  Where feasible, reductions in child burns will be recorded over the baseline of the projects in which the cleaner cooking interventions are being made.

This BBC News Service report provides insights to the importance of super-clean stoves in Malawi where we have our largest stove projects in Africa to date.

Open Fires

Three billion people worldwide depend on open fires and inefficient traditional stoves for cooking with catastrophic consequences to health, the environment and household economics.

  •  4 million deaths each year due to household air pollution
  •  4-5 tons of wood consumed equal to about 5-10 5-year-old trees in agricultural landscapes per household per year
  •  10%-20% of household income spent on wood fuels for cooking where firewood is used for cooking in urban areas
  •  300-700 hours per year spent by women and girls collecting firewood per household in rural areas

Improved Cookstoves

Efficient cook stoves are available, but are often too expensive for many households in developing countries. We have dramatically lowered the cost of high efficiency cleaner burning stoves through our brick and metal rocket stoves built and maintained by women themselves; 

  • 2-5 tons of COe saved per stove per year
  • Spare time of women and girls freed for other activities


LAOS

In 2012, faced with the collapse of the European compliance market, and loss of a revenue base to funds clean efficient cookstoves, we floated the concept of a tradable commodity based on the health benefits of distributing clean cookstoves in developing countries. The proposed salable product is ADALYs, averted disability adjusted life years, or the addition of a year of healthy living, a metric established by the World Health Organization.

The Global Burden of Disease Studies of 2010 later confirmed that of the order of 4 million people, the majority women and children, suffer serious disability and die prematurely every year from exposure to high levels of biomass smoke caused by indoor cooking over open fires. 

The World Bank East Asia and Pacific Region invited members of our team to design a demonstration project in the Lao PDR to test proof of concept that cleaner burning cookstoves and improved ventilation could be a cost-effective means of reducing the burden of disease in the developing countries where cooking with solid fuels was still widely practiced. 

Why Lao PDR? The Global Burden of Disease assessment for Laos show that household air pollution is the largest cause of death and disability in Laos where persistently over 90% of the population cook on crude wood and charcoal burning stoves or over open fires indoors. Super clean forced draft “gasifier” stoves or very high efficiency natural draft stoves are now commercially available at scale, creating an opportunity to dramatically improve child and maternal health in Laos and similarly afflicted communities while creating a salable health product.

Professor Kirk Smith and colleagues at University of California, Berkeley, developed analytical tools to determine the cost effectiveness of clean stove adoption as a means of reducing the burden of disease. These were applied in the Laos study and results demonstrated the economic viability of cleaner cooking to reduce the burden of disease from exposure to toxic particulate matter (PM 2.5) from smoke inhalation. 

We have now partnered with the Gold Standard to sponsor a Gold Standard methodology to verify improved health outcomes from cleaner cooking and improved kitchen ventilation using the metric of Averted Disability Adjusted Life Years (ADALYs). The final draft of this methodology was presented for public review and comment in October 2016 with a view to publication in December 2016. We will adapt an existing, well tested process of third-party verification used for improved cookstoves under the UN’s Clean Development Mechanism (CDM). We will use this process for verifying the extent to which a stove cuts down on household air pollution.



HAITI 

We have developed, funded and are the Coordinating and Managing Entity for a Programme of Activities to market improved charcoal stoves in Haiti, collaborating with Chemonics as part of a contract for an improved cooking technology funded by USAID. The Chemonics partnership extended from 2013-2015, and the CQC designed PoA was registered in 2016. The PoA is focused on improved efficiency charcoal stoves in Port au Prince.

As context:

  • Each stove eliminates about 1.5 to 2.0 tons of CO₂ per year.
  • Haiti loses 10 tons of wood for every ton of charcoal produced for the urban market.
  • 94% of the Haitian population (or 9.2 million people) rely on charcoal or wood for cooking.
  • Haiti has lost 98% of its forests.
  • Haitians spend 20-30% of their income to purchase inefficient charcoal-burning stoves and the charcoal used in them.

Very few of the charcoal stoves that are sold in Haiti last more than a year; many have to be replaced in less than six months. However, the adoption of higher quality improved local and imported charcoal stoves is negligible. On the other hand, the economic, environmental, and social benefits of stoves that are two to three times more efficient than traditional metal braziers are far greater than the difference between what consumers will pay and what it costs a funder to provide them with the best available charcoal cookstoves. 

We developed a program for funding by the Government of Haiti under World Bank Energy Lending Program in order to establish consumers’ willingness to pay for efficient and durable improved charcoal Cookstoves and to switch to superclean wood burning stoves using sustainable biomass to short circuit the loss of energy caused by using 10-12 tons of wood to make one ton of charcoal on a small-scale in Haiti and the Dominican Republic. Ministerial approval for this program was obtained in 2015 but changes in Government caused the program to lapse. We are looking for development finance partners to revitalize this program using the experience we gained from management of the leading edge Cambodia best-in-class Cookstoves auction we now manage.

We are looking for field partners to implement the program. 



GUATEMALA 

The majority of Guatemalan households continue to cook their meals in the traditional way - on a three-stone fire in an indoor pit. These open fires cause respiratory problems and burns, and because they are so inefficient, the high demand for fuel to supply them contributes to deforestation. We are working with HELPS International to use carbon finance to leverage market share of the high-efficiency ONIL cookstoves throughout Guatemala.

  • The HELPs International stove program in Guatemala is designed to reach over 350,000 households over the next decade.
  • Hundreds of thousands of Guatemalans have already benefited by replacing their inefficient and smoky planchas with an ONIL stove;
  • Each ICS eliminates close to 4 tons of CO₂ per year.
  • The Story of the ONIL Stove 
  • HELPS International HELPS is a Texas-based NGO committed to assisting the rural population of the developing world through education, healthcare, economic development and home transformation utilizing ONIL products. HELPS International’s first program was in Guatemala in 1984. Today, HELPS also operates in Nicaragua, Honduras, El Salvador, and Mexico, where it partners with CQC


MEXICO

Rural and indigenous people in Mexico have traditionally cooked their meals inside, using a three stone fire. Today, the most disadvantaged households continue to use these open fires for cooking. They cause respiratory problems and burns, and because they are so inefficient, the high demand for fuel to supply them contributes to deforestation. We are working to provide high-efficiency plancha style cookstoves to families in rural Mexico.

  • Each stove is expected to eliminate close to 3 tons of CO₂ per year, depending on the model and state of repair.
  • Fuego Limpio become our partner for stoves constructed in Mexico after January 1st, 2015.  FL has a high efficiency plancha stove to service the Mexican market. Prior to January 2015, HELPS International partnered with us in a program of carbon asset production and sale from its tens of thousands of ONIL cookstoves built to the date over the previous decade.

ZAMBIA

In October 2014, under a program co-financed with us by KfW’s Future of the Carbon Markets Foundation, we began financing improved cookstoves (ICS) to small-holder farmer households in rural Zambia. The great majority of rural Zambians rely on wood-burning open fires for cooking. A collaborative venture between us and COMACO is helping more than 60,000 households in the Luangwa Valley and surrounding tablelands in eastern Zambia install mud-brick and metal rocket stoves with design origins in the original Total Land Care mud brick stove developed in 2010-2011. We and COMACO successfully partnered to install in COMACO serviced villages 50,000 stoves under the KfW supported project. The project is very successful, to the extent that households nearby that have not received stoves under the KfW project make their own as best they can to capture the benefits of reduced fuel and time spent gathering fuel and cooking meals. We are now entering a second phase of stove distribution with COMACO using a brick stove with significantly redesigned and upgraded metal parts, achieving higher efficiency, greater amenity, and an expected lifetime of ten years. Each of these stove eliminates as much as 3 tons of carbon per year.

  • COMACO Community Markets for Conservation or COMACO was launched in 2003 by the Wildlife Conservation Society of New York (WCS.org), the global arm of the world-famous Bronx Zoo, to pioneer innovative ways of preserving biodiversity, saving wildlife habitat, reducing hunger, and increasing farmer incomes. In exchange for farmers using improved forest and agriculture land management practices, COMACO pays them premium prices for farmers production of groundnuts, maize, soybeans and honey, marketing the products to urban consumers and regionally under the “It’s Wild’ logo. COMACO now has a membership of over 140,000 farmers.


NIGERIA 

Northern Nigeria has the biggest urban firewood markets in Africa and possibly the world. Still, cooking on three stone fires or crude stoves cut from drums comprises the largest share of cooking practices and fuels in Kaduna and Kano, despite high density permanent urban dwellings.

In 1989, Ken Newcombe designed a World Bank cooking fuel market transformation project for Northern Nigeria while he was Head of the technical advisory business unit for the energy sector in the Bank’s Africa region. Nothing changed in the 30 years between discovering this firewood dominated urban cooking market and our entering the market in 2009 with the offer of highly efficiency portable firewood burning Cookstoves supported by forward sales of carbon credits in a vibrant compliance carbon market. 

In 2010, we forged relations with the women owned and led SOSAI renewable energy business and NGO to manage an ambitious clean efficient cookstoves distribution program in urban Nigeria. Plans were developed and marketed for a 500,000 to 750,000 stove program over 7 years. The Nigeria Efficient Cookstove PoA was designed and registered by the end of 2012 as the vehicle for this carbon financed program. Decline in carbon market prices collapsed this program to a more doable scale.

We wrote a contract to supply Certified Emissions Reductions to the Swedish Energy Agency in 2011, and launched with the BioCarbon Group and its own resources, the Northern Nigeria efficient cookstove project in 2013 to supply 45,000 Ecozoom Dura Cookstoves to Kano and Kaduna States through 2015.

Each in their own ways, Boko Haram insurgents and Nigerian Customs laid waste the more modest cookstove implementation plans, depressing the economy, restricting commercial activity on the one hand, and costing the project valuable time and marketing effort on the other. By 2014 it was clear that consumer confidence was insufficient to support sustained purchase of high end imported Cookstoves. Hence an alternative low cost rural stove was developed as a more sophisticated version of the TLC rockets stove developed first in Malawi.

By 2015, this rural extension of the Nigeria stoves project had been launched, and by October 2016, it reached its 12,000 stove target, funds had been raised to extend it to 20,500 stoves by Q1 2017. As of October 2016, further improved metal components were ready to ship to Nigeria top complete the BioCarbon/CQC investment and meet the SEA CER buy order. 

The social impact of employment for young male artisans and local cash injections in villages in Kaduna in the post Boko Haram era proved catalytic of number of local ventures and in supply of critically needed fertilizers and other goods to support economic recovery.

In September, revenues from second verification of CERs from the Nigeria project injected funds to sustain the recent exciting adoption of the brisk and metal rocket stove. Third verification will take place in early 2017 for an end-April 2017 crediting period.

SOSAI Renewable Energies: established and run by Habiba Ali, a well-known Muslim woman entrepreneur in Nigeria and globally, is our partner in the now resurgent Nigerian Efficient Cookstoves program.


MALAWI / MOZAMBIQUE 

The vast majority of the rural population in Malawi cook on highly inefficient, traditional three-stone fires, which are often located inside poorly-ventilated kitchens with tiny windows, if any. This not only causes severe household air pollution and chronic health problem; it limits economic productivity and leads to some of the highest deforestation rates in the world. We partnered with Total Land Care to upgrade TLC’s original mud-brick only cookstove by adding metal parts to lift the thermal efficiency of the stove from 15-16% to 28-30%. The TLC Rocket stove as it is commonly called, has proven very popular and is widely sought after in rural Malawi. We and TLC have been constantly improving the stove program and design with the benefit of learning obtained from completing the first program deploying the stove over the past 3 years: a 64,000 stove program funded by BioCarbon Group and CQC, with a large Emissions Reductions Purchase Agreement from the Swedish Energy Agency (SEA).

Current efforts focus on training villagers to maintain their own mud-brick and mortar infrastructure while we focus on increasing the durability of the metal parts aiming for a ten-year life under constant daily use. 

TLC- CQC partners collaborate closely on all stove projects in Malawi and look forward to the opportunity to extend the program into Mozambique in due course.

  • The partners aspire to deploying at least 25,000 stoves per year on an ongoing basis with a view to making the TLCRS a standard piece of a household’s furniture for which metal parts, brick molds and designs can be purchased through general stores in rural areas.
  • Each stove eliminates about 2 tons of CO₂ per year.
  • The first 64,000 rural stoves were installed and registered in our online geo-location data base by August 2016;
  • An additional 25,000 stoves are planned to be installed in the period through May 2017.
  • Total LandCare (TLC), founded in 1999, works to improve the livelihoods of smallholder farmers in the region using community-based approaches to increasing agricultural production, food security, and incomes while ensuring sound, sustainable management of natural resources.
  • Total LandCare Green (TLCG) launched in Lilongwe in July 2013 with initial capital from us. Total LandCare Green (TLCG) began meeting the cooking needs of rural villagers in Malawi in 2014 as a service provider to TLC and regional stoves programs,  procuring parts, tracking stove location and use, and managing the annual monitoring and verification the UN requires for issuance of carbon credits for its owners.
 
 

EFFICIENT LIGHTING 

We have made it possible for poor households in India to replace their inefficient incandescent light bulbs (ICL) with more than 8.6 million CFLs and are now transitioning to the distribution of leading edge LED lighting in South Asia.

Impact: Incandescent vs. LED Bulbs

  • Very poor families using incandescent bulbs (ICL) spend as much as 10% of their income on electricity in India.
  • From 2010-2013, CQC supplied high quality CFLs at a fraction of the retail price;
  • We supplied CFLs lasted 10-20 times longer and produce better light than ICL bulbs;
  • CFL’s are a transitional technology and have been superseded by LEDs, which have lifetimes of 25,000 to 50,000 hours, 5-10 times longer than most CFLs and with the same improvement in efficiency and per lumens delivered;
  • CFLs are prone to early failure under poor power quality conditions which prevail in many developing countries. LEDs are much less susceptible to failure due to voltage fluctuation.
  • Recently recorded failure rates of LEDs in Indian households with relatively poor power quality, including serious voltage fluctuation, are less than 0.5% per annum. This compares to CFLs, which are often destroyed by severe voltage fluctuation, and experience loss rates of 10% per annum or more.
  • LEDs cut electricity consumption by 80%, saving households enough to recover the retail cost of the bulbs within 15-20 weeks, while lasting 5-10 years depending on level of use.
  • High quality, long life CFLs distributed by us in India up to 2014 reduced greenhouse gas emissions by approximately 4 million tons of carbon;.
  • We are now planning to replicate its CFL efficient lighting projects using modern reliable LEDs made in India with even greater long term impacts on household economy and power systems reliability.

INDIA: Changing Light-Changing Lives

Between 2010 and 2013, we worked with the Indian government’s BLY program and the Ministry of Railways to distribute over eight million compact florescent light (CFL) bulbs. The result was lower electricity bills, better quality lighting, reduced greenhouse gas emissions.

Reporting on technology change in lighting

 

INCANDESCENT LIGHT BULBS

Incandescent bulbs remain the main form of lighting for low income households in India because they are universally available and cost as little as US 10-15 cents per bulb compared to 200-250 Rps for LEDs at the retail level (mid-2016). However, ICLs last only 500-1000 hours.

  • 100 million families estimated to be using 60-100 watt incandescent bulbs still in households across India, despite major government programs for LED distribution.
  • 1000 MW of coal fired power plant avoided at the evening peak: For every 15-20 million LEDs installed in households replacing ICLs.
  • 3-5 % of family income saved: In the switch from incandescent bulbs to LEDs

 

LEDs

LEDs use approximately 15% of the energy of incandescent bulbs to produce the same amount of light, and last 50 to 100 times longer.

  • 130 tons of COe saved by replacing 400 million incandescent bulbs with LEDs.
  • 1/5 of the cost: Electricity cost savings for very poor families from LED  use of can be 3-5% of their income.
  • Payback time: It only takes 2-4 months of lower electricity bills from use of LEDs to recover the 15-30 INR per LED bulb cost under a carbon financed program for distribution of LEDs to the poorest consumers.

 

We have embarked on the design of the next generation of efficient lighting, using LEDs instead of CFLs, focused again on base-of-the pyramid consumers still unable to afford the transition from old inefficient but very cheap incandescent light bulbs. LEDs of modest quality retail in Indian in 2016 for 200-150 Rps per 8W bulb, while incandescent bulbs of 60W can be purchased for 10-15 Rps. Overcoming the first cost barrier is, as always, the key financing challenge to transform the provision of lighting services to the poor. We hope to launch a new series of LED lighting projects with Indian utilities and other partners in early 2017.

 

CFLs in India - Part 1

CFLS IN INDIA - PART 2: Implementation

 

CFLS IN INDIA - PART 3: testamonials

 
 

SUSTAINABLE ENERGY 

Reliable access to sustainable, affordable energy is one of the most significant economic and social challenges facing developing countries today. This is an especially serious problem for the rural poor in Africa. However, whole African economies are beset by limited power supply through their power grids and the enormous cost to their economies of private back up diesel generation to back up failure of supply from public utilities.

The solar PV and battery storage technologies that can change this at every level in these economies are becoming more affordable every year. Yet the great majority of the rural and a large portion of urban population of Sub-Saharan countries continue to rely for lighting on kerosene, batteries, candles or the glow of open fires for lighting, and on lead acid batteries to charge their cell phones at some vendor selling cell phone charges at up to $0.25 cents per charge.

Likewise, cooking on inefficient polluting open fires is the norm for the majority of Africans, extending deep into the burgeoning urban settlements as well as across all rural populations. Urban populations are in various stages of transition to charcoal, much of it harvested illegally and almost without exception, using woefully inefficient carbonization technologies that require 10-12 tons of wood to make one tone of charcoal. The result of the firewood to charcoal transition is acceleration of deforestation, arable land degradation and watershed destruction, affecting food and water security, as well as farmer incomes and welfare.


Context: Fossil fuels v. renewable energy

  • 38% of the world’s population - 2.6 billion people - rely on traditional fossil fuels, usually wood, for cooking and heating.
  • More than 95% of these people live either in Sub-Saharan Africa or developing Asia; 84% of them in rural areas.
  • Lighting with solar power costs half as much as lighting with kerosene.
  • In much of Asia, photovoltaic energy now competes economically with oil, diesel and liquefied natural gas power generation without subsidies
  • A significant proportion of rural households are either grid connected or have small solar panels to provide light and charge batteries, power radios and even TVs.
  • This solar clean energy revolution is yet to reach Africa on any significant scale despite commercial scale demonstration at scale in a few countries, like Kenya, over the past decade.

Because renewable energy creates jobs, improves energy security, and reduces greenhouse gas emissions, we are investing in sustainable energy forestry, large and small-scale solar photovoltaic power projects, and distribution of micro-PV household lighting and charging technology for Base-of-the-Pyramid families.

Examples of CQC’s work in sustainable energy supply include:

Malawi: development of a 45MW Grid-Connected Solar PV power plant, or combination of power plants to supply the pubic power utility, Escom through an Independent Power Production agreement. We are a participant in Atlas Energies, a local Malawian energy development company which is in partnership with ibvogt, the leading German solar power developer. We are the arranger of international partnerships and financing with Atlas Energies, and advisor on power systems planning and development in the dialogue with Government. PPA terms have been agreed, land has been allocated, and a sovereign guarantee agreement signed for 100MW of solar PV development over several years.

Sustainable firewood supply Malawi: We and Total LandCare have designed and demonstrated through a Joint Venture, Total LandCare Green (TLCG), a “proof-of-concept” that 80% of the cooking energy needs of large African cities can be supplied through small-holder sustainable firewood lots and agroforestry on 5% of the land within 50km of the city. With generous support from IrishAid over 2014-2016, 25 TLC-sponsored villages are delivering up to 8 tons of firewood per week as of October, 2016, to truck stop depots in between villages and Lilongwe, reducing the burden and cost of delivery to market by push bike and assuring a fair price for product delivered to standard specifications from sustainable on-farm production. TLCG also manages door-to-door firewood distribution on a small pilot scale and is seeking to establish wholesale depots for sustainable village wood as supply expands.

Uganda: Supply of high quality hand-held and households lighting and charging systems is being developed with local partners in the energy appliance distribution business and in partnership with Mimi Moto of Netherlands, a leading designer and supplier of PV and clean cooking technology.


UGANDA: Small Hydro

The UN estimates that only nine percent of rural Ugandans have access to electricity. In rural areas, up to 90% of the energy consumed comes from burning biomass. Wood fires, used for cooking and heating, pollute the environment, cause respiratory disease, and contribute to rapid deforestation.

While most of Uganda’s hydropower development has focused on large projects that utilize the waters of the Nile River, small hydropower projects have great potential for meeting the needs of rural communities.

One such project is the Ishasha Small Hydropower Project, located on the Ishasha River in Kanungu District, an impoverished, largely undeveloped, mountainous region that is home to more than 205,000 people. The district’s 41,000 households either run inefficient, polluting, and expensive diesel generators or have no electricity at all.

The Ishasha Small Hydropower Project provides the people of Kanungu with clean power, enabling them to take advantage of economic opportunities and improve their standard of living without degrading the environment.

Developed and managed by Eco Power Uganda Limited (EPUL), the plant generates clean, renewable power for the national grid, which generally relies on the burning of oil. The 29.518 GWh of electricity generated by the Ishasha plant will produce approximately 20,000 certified emission reductions (CERs) annually between 2010 and 2021.

We make the project possible by managing the verification process and all CDM communications and actions, from registration to marketing and forwarding of CERs after issuance.

We have also made the first ever trade in International Renewable Energy Certificates (IRECs) from the Ishasha hydropower plant. This trade of 6000 IRECs was made early in 2016 through our retain partner, Natural Capital Partners.

  • Eco Power EPUL’s parent company is the Eco Power group in Sri Lanka, a firm specializing in the design, construction and operation of small hydropower plants across Africa and Asia.

MALAWI: Fuel Switching Project

Launched in Lilongwe in July 2013 as a Joint Venture between us and Total Land Care, and capitalized by us, Total LandCare Green (TLCG) was established to pioneer environmentally and financially sustainable firewood and woody biomass fuel supply to urban and peri-urban consumers. The consumer focus is on “base of the pyramid” households that are struggling with the high price of firewood and charcoal and often cooking less than three meals a day as a result.

Current supply of firewood and charcoal to Lilongwe and Malawian towns and cities in general is from illegally harvested firewood, increasingly from watershed reserves and protected areas as trees in agricultural land are depleted and there are no natural forests outside of reserves near big cities.

The crisis in biomass cooking fuel supply is acute, with watersheds so depleted for Lilongwe that water supply to the city is threatened. Decades of supply of firewood from the remaining stands and saw log residues in the 54,000 ha Viphya pine forest, 5 hours to the North, are drawing down to a trickle as the Viphya forest is depleted and remaining standing forests are tightly policed by the few private sector owners.

TLCG’s challenge is to compete with “free wood” harvested illegally and processed into stick wood, carried on bikes for up to 50 kms to Lilongwe and delivered door to door or through market intermediaries across the city. Charcoal is also produced from stolen wood and bears no resource cost, making commercial production of charcoal financially inviable, except in exceptional circumstances on a small scale. 

After many failed attempts to deliver chunked and chipped wood, TLCG reverted to procuring stick wood from sustainable sources and launching its own door-to-door vendor network to pilot this market model. Pilot level results with 5 bike vendors have been promising, but scaling up is financially and logistically challenging.

In 2014, TLC accepted our proposal to offer a firm price for sustainably grown stick wood near to the villages where TLC has been supporting for many years sustainable on farm forestry. Irish Aid agreed to support this business model on a pilot basis. By May 2016, many of the 25 TLC serviced villages were delivering stick wood cut to TLCG specifications from woodlots and on-farm coppiced and pollarded trees under TLC seed supply and silviculture advice. By October 2016, this supply reached 8 tons per week delivered to a fixed weekly TLCG Truck pick up point 10-15kms from the villages and 20-25kms from Lilongwe. 

Villagers are pleased with the new cash cropping opportunity and are increasing production under TLC’s supervision. To expand beyond 5% of Lilongwe’s firewood needs however, significant concessional finance from development agencies or social impact investors to underwrite the expansion of warehousing and transportation infrastructure needed to sell the wood on in many small depot outlets to women retailers while keeping margins low enough to compete with usually higher quality hardwood illegally harvested in the hinterland.

We and TLC are working on outreach to such concessional financiers to take this exciting model to scale. Generally speaking, 5% of the land within 50kms of Lilongwe can supply the firewood needs of the city sustainable. This rule of thumb applies to many cities of the size of one million inhabitants or so across Africa. The TLCG pilot is the first successful demonstration of sustainable smallholder firewood supply we know of and deserves much larger scale support. While any significant natural wood remains, and enforcement against illegal harvesting is weak, investment on by the private in large scale small-holder supplied supply will not be sufficiently profitable to compete with illegal suppliers.



SRI LANKA: Small Hydro 

We registered a series of small-scale hydropower projects (SHP) in Sri Lanka with the UN’s Clean Development Mechanism and continues to manage the CDM assets.

  • Seven small-scale, run-of-river hydropower projects are grouped in three CDM projects to replace diesel- and oil-based power generation in the Sri Lankan grid.
  • These projects together have a projected annual power output of 133.9 GWh/year and a potential annual production of 104,130 CERs/year.
  • The success of the projects and their registration with the CDM helped spark development of other similar projects in Sri Lanka.  As a result, there is currently over 175 MW of small-scale hydropower capacity in Sri Lanka and an additional 175 MWs slated for development by 2020.
  • Eco Power, a privately held Sri Lankan company established in1997, owns and operates ten SHP plants in Sri Lanka with a combined installed capacity of 36 MW.


CHILE: Solar Photovoltaic Power 

 We are using carbon markets to support implementation of a series of grid-connected solar photovoltaic projects in Northern Chile that will provide clean, carbon-free electricity to the Chilean market. To this end, we have entered into a partnership with First Solar to pioneer the monetization of carbon emissions reductions in the First Solar 140MW solar PV commissioned in 2016 and now in full scale operation. 

  • The project takes advantage of the world class insolation in Chile’s northern desert.
  • The commercial goal of this solar PV program is to balance the mining industry’s skyrocketing need for electricity with the country’s concern for environmental sustainability, reducing the need for imported coal for power supply to the mining industry.
  • Grid-connected solar PV in Chile also supports the federal government’s policy of having 10% of all electricity in northern Chile come from renewable sources, even when they are more expensive than coal; carbon finance reduces cost of policy.
  •  Solar Chile Builds, operates and maintains solar power plants in Chile.
  • Valor Sustentable specializes in environmental projects involving energy efficiency, industrial ecology, sustainability strategy, carbon and water management and solar power.