Micro Hydro Power Management

1
Micro Hydro Power Management

• Business Development

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Content of Presentation

• Role of Micro Hydro Power (MHP) Scheme
• Expanding the Business
• Concept of Business Development
• Expanding MHP Related Businesses
• Developing New Business Units
• Recommended Steps
• Additional Effects of Business Development
• Productive Use
• Concept of Productive Use
• Considerations

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Role of Micro Hydro Power (MHP)

• A Micro Hydro Power (MHP) scheme is not the final
  aim of a renewable energy/rural energy program
• The final aim is the improved welfare of the
  communities - the MHP scheme represents a tool
  to help achieve this aim
• Therefore the MHP management should consider all
  efforts to improve the welfare of the community

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Concept of Business Development

• Background
• MHP management is essentially a small business
  entity (village utility) that must operate with a
  positive cash flow in order to ensure continued
  operation of the MHP scheme
• Sustainability of MHP Scheme
• Sustainability of MHP scheme is largely
  dependant on a healthy financial condition being
  maintained. The more funds the scheme can
  accumulate the more able it will be to cover
  periodic overhaul and equipment replacement costs

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Expanding MHP Related Business

• Core Business
• In most cases the core business of MHP
  management is selling electricity to households
  for evening lighting
• Expanding the Business
• Expanding strengthening the core business by
  widening the market to include small industrial
  end uses (productive end use). This includes
  opening new lines of business such small
  workshops, agro processing, cottage industries
  such as sewing etc

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Developing New Business Units

• Important Factors
• Availability of adequate power. There must be
  sufficient power and a the means to access it for
  small businesses
• Good Quality of Power. Quality of the power
  supply influences what type of appliances can be
  used
• Capable Man Power. Skilful man power is needed
  for specific sectors
• Market for products. There must be adequate
  demand demand for products / services
• Available funding. To invest in new equipment /
  infrastructure adequate funding is required
• Community agreement. Participation of community
  is important, they should be informed on
  potential for business creation (awareness
  building)

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Expanding Business - Recommended Steps

• Assessing the market potential
• Assessing specific business forms / niches
• Examining specific production processes and
  services which may be viable
• Assessing the man power and natural resource
  requirements
• Assessing the overall feasibility of the business
  
• Assessing required investment
• Assessing potential impacts on the environment

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Additional Impacts of Business Development

• The additional impacts are
• Improved skills of local man power
• Improved entrepreneurial capacity of communities
  to identify potential business opportunities
• Improved managerial skills of communities
  regarding small scale industry development (i.e.
  Financial, Production, Marketing)

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Concept of Productive Use

• Productive end use means any activity that
  utilizes energy (electrical or mechanical) for
  income generating activities. Through the
  expansion of income generating activities
  tangible impacts on the local economy and welfare
  of the community are achieved
• Productive end use is a key strategy to improve
  the sustainability of MHP schemes in parallel
  with enhancing community welfare

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Considerations

• In promoting the development of productive end
  uses, one should consider
• Product and the market. The product should be
  marketable and access to markets must exist
• Local resources. Should maximize the use of local
  resources and avoid over dependency on outside
  services. This includes local man power
• Empower women. Productive end use promotion
  should target both men and women. Many small
  cottage industries are traditionally handled by
  women
• Power Availability. Adequate power of a
  acceptable quality must be available and
  accessible