Project Overview

Productive use (PU), which refers to the application of modern energy for income generating purposes, is a significant driver of socio-economic development. Multiple resource-based or hybrid energy solutions are a particularly promising means of providing this energy for productive use and for stimulating development. This project focuses on hybrid-based electricity generation which can serve stand-alone applications, mini-grids or the national electrical grid and will test the hypothesis of economic development driven by productive energy use through case study project implementation. The project is funded by CEF (Pty) Ltd. through its division the Energy Development Corporation (EDC) and in conjunction with its wholly owned subsidiary SANERI (South African National Energy Research Institute). The project is part of the SANERI thematic area encompassing socio-economic development through the productive use of (renewable) energy (PURE). Restio Energy is partnering with Nano Energy to undertake this project.

Project aims

The aim of the project is to develop a management framework for hybrid energy services that addresses the existing sustainability questions relating to technology, income generation, finance and administration.

Key research and knowledge components

• Evidence of successful hybrid and renewable energy provision for productive use nationally and internationally; a structured literature and project review will develop a database of hybrid and RE productive use projects both nationally and internationally.
• International programmatic alignment; the project will assess the growth and importance of productive use both nationally and internationally and link the project with regional and global programmes and other national and civic initiatives
• Identification of market segments; understanding the different market segments, including household (various), leisure, industry amongst others and their different characteristics and requirements
• Stakeholder identification and engagement; communicate with sector participants and stakeholders through regional workshops.
• An analysis of the enabling environment; this would include an examination of technologies, delivery models and institutional and policy settings which contribute towards the success of hybrid and renewable energy initiatives
•  Proposed framework for PURE; develop a PURE enabling environment framework which would include criteria, operational procedures and investment guidelines

Project benefits

There are a number of benefits accruing from the project;

Skills transfer; the training of younger professionals on the PURE programme, information transfer between different PURE stakeholders, interactions with project developers/beneficiaries and various government agencies.
Industry benefits; The framework developed will inform future preparation of bankable energy provider business plans for both the CEF and financial institutions adhering to national strategic energy imperatives.
Socio-economic benefits; PU opportunities will benefit formerly disadvantaged communities. Furthermore, there will be opportunities in the provision of support services through the development of enabling infrastructure. Opportunities include technology development/maintenance, enterprise development services, micro-finance amongst others.

For more information on the project, please visit the Productive Use of Renewable Energy Portal.