© Sustainability Affairs - 1 - 01-04-06 Access to Electricity Christian Kornevall Dar Es Salaam,...
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Transcript of © Sustainability Affairs - 1 - 01-04-06 Access to Electricity Christian Kornevall Dar Es Salaam,...
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Access to ElectricityChristian KornevallDar Es Salaam, September 29
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Who we are...
Headquarters: Zurich, Switzerland About 133,000 employees in
around 100 countries Orders in 2002: US$ 18.1 billion Revenues in 2002: US$ 18.3 billion Listed on stock exchanges in
London/Zurich, Stockholm, Frankfurt and New York
A leading power and automation technology company with strong market positions in its core businesses
Two units in Tanzania that employ 130 people:- ABB Tanelec in Arusha- ABB in Dar Es Salaam
Our aim is to create value for all our stakeholders
We seek to meet the needs of our customers, our employees and the communities where we do business
Headquarters: Switzerland About 133,000 employees
in around 100 countries Orders 2002: US$ 18.1 billion Revenues 2002: US$ 18.3 billion Listed on stock exchanges in
London/Zurich, Stockholm, Frankfurt and New York
download from www.abb.com/sustainability
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1.6 billion people have no Access to Electricity
Sub-Sahara Africa32%
South Asia50% 35% in India alone
East Asia (not including China)14%
Earth’s City lights (NASA)Earth’s City lights (NASA)
Source: IEA World Energy Outlook 2002
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The link between poverty and Access to Electricity
Source: IEA analysis; income from the World Bank’s World Development Indicators, 2001
Tanzania
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ABB’s Access to Electricity program
“Access to electricity is of key importance in the fight against poverty.It is a key enabler and precursor for sustainable development.”
ABB wants to contribute to the electrification of poor rural and semi-urban areas
ABB seeks to improve its ability to meet the needs of the rural poor
ABB will grow its long-term business engagement in the least developed countries
“Our main focus in Tanzania is the productive use of affordable energy and the development of local business, SME:s and markets”---
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Access to Electricity – ABB’s response to UN Global Compact
• Afghanistan• Angola• Bangladesh• Benin• Bhutan• Burkina Faso• Burundi• Cambodia• Cape Verde• Central African Rep.
• Chad• Comoros• DR of Congo• Djibouti• Equatorial Guinea
• Eritrea• Ethiopia• Gambia• Guinea• Guinea Bissau• Haiti• Kiribati• Lao People's DR• Lesotho• Liberia
• Madagascar• Malawi• Maldives• Mali• Mauritania• Mozambique• Myanmar• Nepal• Niger• Rwanda• Samoa• Sao Tome and Principe
• Senegal• Sierra Leone• Solomon Islands• Somalia• Sudan• Togo• Tuvalu• Uganda• United Rep. of Tanzania• Vanuatu• Yemen• Zambia
(Source: UNCTAD)
An appeal to industry to grow business in the Least Developed Countries (LDC)
ABB does business with 38 of 49 LDCs
The revenues 2001 were 334 million USD, (1.4% of total revenues)
Example: Power supply to Ukerewe Islands 10 MUSD, financed by Spanish government
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Addressing the bottom of the pyramid
developed countries
developing countries;semi-urban areas
least developed countries;rural areas
1 $ per day
The income pyramid
ABB’s main streamof operations
Focus of Access to Electricity
A bottom up rural transformation concept
ExtendingBusiness asUsual
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Rural electrification – organic growth
village
small town
mine
plantation
stonequarry
minihydro
powertransmissionline
tourist spot
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What is an Access to Electricity project?
Local involvement and partnership
Explore alternative business models
Need for commercial and technical expertise
Need for project developers
Projects should be profitable
Broader scope than electrification only – including SME development, water, communications and roads
A good project should follow the intentions of UN Global Compact
download from www.abb.com/sustainability
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First Pilot Project with WWF - Selous Game Reserve
Selous Game Reserve
Electrify Ngarambe Village275 homesteads, 1800 people
WWF goals: Reduce pressure on the use of biomass Renewable energy resources Energy efficiency and state-of-the-art technology
ABB goals: Demonstrate the positive impact of electrification Create economic activity Explore an economic model for sustainable supply of electricity Use available ABB low cost technology
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ABB’s business models for Access to Electricity
ABB’s main stream business model
Organic growth model
Partnership model
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Potential areas for Access to Electricity projects
Rural growth spots tourism
mining
agriculture
SME:s
Semi-urban areas
Communities aroundgame reserves
Other development initiatives, e.g. Lake Victoria
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What ABB offers in Access to Electricity
Adapted business models
Low cost / high value productsmainly produced in Tanzania
Vocational training
Strong local implementation experience
To prove pilot schemesbefore scale-up
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Our expectations on this meeting
To find a role where we can contribute with our technology to create income, employment and growth in Tanzania
To speed up the implementation of the government’s BEST program and the new SME policy
To be an implementing partner in the team that grows new sustainable business in Tanzania
To generate project ideas for Access to Electricity To start-up joint pro-poor pilot projects To accelerate rural electrification in Tanzania