Solar power. Domestic energy  N/A



Market assessment and feasibility of a large scale market based dissemination of solar home systems (SHS)

Country : Indonesia. .
Client : IBRD and French Ministry of External Affairs
Start Date : 1994
Completion Date : 1995
Value of services : N/A
Funder : World Bank .
Associate/Partner : N/A
Description :
A Solar Home System project aiming at a market based dissemination of 150 000 SHSs in rural Indonesia is currently under preparation by the World Bank under the umbrella of the 150 Million USD Rural Energy Development Programme (REDP). The project rests upon the development of appropriate financial packages, i.e. 2 to 3 year credit schemes which would be available to rural end-users and suppliers. The project will be co-financed by a GEF (Global Environment Facility) grant: a buy down of about 100 USD per system will be paid to suppliers as an incentive; GEF will also support technical assistance for managerial and technical assistance in project execution.
Description of the Actual Services Provided IED’s tasks consisted in undertaking a market assessment to verify the potential for 150 000 SHSs on a commercial basis over a period of three years and in formulating recommendations to improve availability and quality of products proposed on the Indonesian market.
Based on available secondary data, IED developed a methodology for recommending provinces best suited to the project. Six provinces were retained as survey areas: West Java, Lampung, North Sumatra, South Sulawesi, East Timor and Bali.
A questionnaire was developed and tested by IED. The survey covering 56 villages (1 200 households) in the six Provinces was executed by a local consultancy firm co-ordinated by IED. On the basis of survey analysis, the market potential was assessed for each of the six Provinces and end-user profiles established, regarding energy consumption and expenditure, knowledge of SHSs and willingness and capability to pay for a solar service. Analysis of results led to retain 3 priority Provinces for project execution : West Java, Lampung and South Sulawesi.
Regarding supply of SHSs, IED interviewed all the main operators who could potentially be involved in system dissemination and servicing, covering private sector and community based operators.