Interview with OSRAM lighting's Global Sustainability Director
Vienna, 08.09.2008 - Peter Richards
REEEP interviewed Rodd Eddy, Senior Director for OSRAM Global Sustainability about their off-grid lighting programme for developing countries. OSRAM's "Energy Hub" concept was launched in Kenya in April 2008.
1) OSRAM is a leader in "off-grid" lighting solutions. What was the catalyst that shifted the company's focus to the developing world?
As one of the world’s largest lighting manufacturers, we recognize that an intelligent, conscientious approach to the environment is not just the right thing to do, it is the only thing to do. Around 1.6 billion people throughout the world still do not have access to electricity, with our approach to off-grid, we are now starting to change this.
We want to turn light into an affordable commodity for these people in these regions – and continue with sustainable development. So we are proud to be the first lighting manufacturer in the world offer a sustainable lighting solution for these regions without power supply. And the potential is high; 77 billion litres of kerosene consumed every year, 190 million tons of CO2 emitted each year, and 1.6 billion people affected.
We believe that by only providing a true triple bottom line approach will this market be able to sustain change: people, planet, profit.
2) Your "Energy Hub" solar charging station was launched in Kenya. How is the project going? How many users are required for the project to become economically sustainable?
We have had enormous success and acceptance by the local communities where the hubs are stationed. By providing a solution based alternative to kerosene at 30% reduction, access to clean drinking water, and quality mobile phone charging, does not only provide immediate positive environmental, financial and health benefits, but also means local employment, better educational opportunities, and an opportunity for poverty alleviation.
3) Solar lighting displaces kerosene. What are the economics of kerosene in Kenya and what are the trade-offs that a villager must make when purchasing a solar lighting system?
With only 15% electrification in Kenya the reliance on fuel based products is the way of life for the majority. Even considering all the negative aspects of using kerosene; dangerous, unhealthy, and expensive, people have up until now had no real alternative.
The system we have developed for users provides zero risk, as apart from a refundable security deposit they only pay on a per charge basis. Therefore a user is getting a cheaper alternative with better light quality that does not emit harmful fumes and is easier to use.
4) Finance is always an issue regarding renewable energy. What type of microfinance programme did you create and what are the financial terms?
The incorporation of microfinance as an integral part of our project was based on two very important aspects that we believe is essential to the successful long term sustainability of such a project:
- accessing and incorporating the existing community based structures that ensure community ownership
- lodging of security deposits for products which provides users the responsibility and a sense of ownership to ensure product safeguarding.
The microfinance system is organized by a local NGO.
5) Nokia is one of the partners in your project. What is their role and will the company become part of your replication model?
Nokia is a crucial partner for us, as most part of the development within developing countries and especially rural Africa has been the rapid growth and acceptance by the people for technology and communication. As we include mobile phone charging the experience and success of Nokia has meant that we have been able to gain knowledge we would of otherwise not had.
Since we are currently running through a pilot phase and are not yet in the position to provide a complete rollout the rolls of any partners and the final constellation is still yet undefined.
6) How long does it take to build a solar "energy hub" and how many batteries can be charged each day?
From land purchase to product trading, the time required has been 10 weeks. This incorporates the necessary building construction required to support such an operation, and the in depth technical installation that provides the most efficient reliable system that users can gain maximum benefit. We currently have 10kw of solar installed and can currently charge a 12amp/hr O-Box within 2 hours, with 112 charging points.
7) What were the barriers that you had to overcome to get the project completed?
With more than 100 years of lighting experience and currently manufacturing in 17 different countries and supply into 124 countries we had already reasonable experience in different markets. However, I would only be lying if I said we had accounted no problems.
8) Tell us about the energy saving lamps. The developed world is currently promoting LEDs in place of incandescent lightbulbs. LEDs are expensive - are you promoting energy efficient bulbs or traditional bulbs in Africa?
The development of quality LED based products is important to cover the total market potential of kerosene users, however, we believe as a market leader in LED production and inventors of the electronic compact fluorescent lamp, that today the most cost efficient most reliable solution today is through compact fluorescent lamps.
9) How much CO2 is an energy hub expected to displace? What quantity of kerosene will be avoided?
The goal has to be to eradicate the usage of kerosene from all users globally, and OSRAM will play an important role in this through the introduction and implementation of the O-HUB. As we are currently still collating data from the introduction, it is difficult to asses the exact quantity displaced.
10) OSRAM is a partner of the REEEP. How do you see REEEP contributing to the success of off-grid lighting?
With 1.6 billion people globally affected by the lack of grid accessibility, we believe that it will take the efforts of a multitude of multi stakeholder approaches, and with REEEP’s partner network it means that this achievement becomes a little closer. Without large public and private institutes, governments and organizations the realization of abating global warming, and alleviating poverty with long term sustainable solutions will just not happen.