SEEED - PRODUCTIVE END USE AND SOCIAL ENTERPRISE
Our initiative Social Enterprise for Energy, Ecological and Economic Development (SEEED) supports community-scale hydro practitioners and communities to achieve long-term technical, environmental, institutional, and financial sustainability of their hydro mini-grids -- towards lasting community empowerment and increased climate resilience.
Central to the SEEED approach is the transition of community-based hydro mini-grids that have limited operation and barely surviving financially (e.g. limited to being a social asset only), into becoming self-sustained social enterprises that earn from well-managed, nature-based electricity generation and distribution for household, social, and enterprise use. The difference between the social asset only and the social enterprise outcomes two are illustrated in the two figures below.
Central to the SEEED approach is the transition of community-based hydro mini-grids that have limited operation and barely surviving financially (e.g. limited to being a social asset only), into becoming self-sustained social enterprises that earn from well-managed, nature-based electricity generation and distribution for household, social, and enterprise use. The difference between the social asset only and the social enterprise outcomes two are illustrated in the two figures below.
KEY CHALLENGE: SOCIAL ASSET ONLY
SOLUTION: TRANSITION TO SOCIAL ENTERPRISE
The transition to successful social enterprise requires a number of core elements (as shown below). The foundational elements focus on functionality, namely quality of technical design and installation, as well as the condition of the catchment area that dictates the seasonal and long-term consistency of the water flow. These have been discussed in previous posts, discussing the need for technical standards and watershed strengthening.
This quarter we spotlight the SEEED elements that can be achieved once reliability is established, namely productive end use and inclusive enterprise aspects that bring value-add to local livelihoods.
This quarter we spotlight the SEEED elements that can be achieved once reliability is established, namely productive end use and inclusive enterprise aspects that bring value-add to local livelihoods.
CORE ELEMENTS OF SEEED
Since the formation of our Productive End Use (PEU) Work Stream in 2015, we have been collating and ground truthing end uses of hydro mini-grids. We will soon be updating our PEU knowledge portal to include a compilation of community hydro end uses for cooking, healthcare, economic recovery, and climate resilience.
Our initial assessment of hydro mini-grids in the Asia Pacific have identified sub-elements that differentiate various models of inclusive enterprise, including the following:
We will soon collaborate with partners to further analyze best practices within each of these sub-elements. The following examples of enterprise-based hydro mini-grids continue to inspire and refine our approach to the SEEED initiative, in terms of management, ownership, productive end use, and livelihoods enhancement aspects.
Asia Pacific
Africa
Latin America
As a part of our knowledge exchange process (below), we continue to look for additional examples for peer-to-peer exchange, in order to collectively advance community-scale hydropower. If you would like to share about your approach to sustainable hydro mini-grids, please let us know here!
Our initial assessment of hydro mini-grids in the Asia Pacific have identified sub-elements that differentiate various models of inclusive enterprise, including the following:
- Inclusive ownership models
- Cost-recovery models
- Revenue generation models (i.e. connection fees and tariff)
- Effective management processes
- Access to credit and smart subsidy
We will soon collaborate with partners to further analyze best practices within each of these sub-elements. The following examples of enterprise-based hydro mini-grids continue to inspire and refine our approach to the SEEED initiative, in terms of management, ownership, productive end use, and livelihoods enhancement aspects.
Asia Pacific
- Winrock Nepal economically revived five micro hydro projects in Nepal, using a peer-to-peer approach, supported by WISIONS. Read more here.
- The association Hydropower for Community Empowerment in Myanmar (HyCEM) is transitioning to cooperative-based models for hydro mini-grids. Read more here.
- Hydropower Concern Ltd., under the leadership of Bir Bahadur Ghale in Nepal, uses a developer-owned approach that has led to high productive end use and economic resilience. Read more here.
- The Aga Khan Rural Support Programme (AKRSP) has established community-owned mini-hydropower utilities that are electrifying entire valleys, while nurturing women-led enterprise. Read more here.
Africa
- Energising Development (EnDev) Ethiopia is initiating a process to revive micro hydro projects, in order to instill optimization in end use and long-term sustainability using an enterprise-based approach. Read more here.
- The Association des Ingénieurs pour le Développement des Energies Renouvelables (AIDER) installs and operates micro hydro systems in Madagascar. Read more here.
Latin America
- Association of Rural Development Workers—Benjamin Linder (ATDER-BL) has interconnected multiple hydro mini-grids with each other, providing electricity to a sub-region in northern Nicaragua. Read more here.
As a part of our knowledge exchange process (below), we continue to look for additional examples for peer-to-peer exchange, in order to collectively advance community-scale hydropower. If you would like to share about your approach to sustainable hydro mini-grids, please let us know here!