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Abstract / English Summary

Project:  Renewable Energies for Rural Electrification (PERMER)

Executive Summary

PERMER is a federal project aimed at providing electric power to rural dwellers, generated from renewable local energy sources, especially solar and windpower.  The potential recipients of PERMER's actions are mostly low-income families living in isolated areas, far from the conventional electrical network.  At the initial (three first years) stage there will be around 54000 homes receiving electric power, and this number will reach 87000 homes depending on the adhesion of other Provinces and on their social and economical characteristics.  Around 2000 isolated rural schools, health dispensaries, police stations, and similar public buildings will also have this service.

The final users are being provided with energy enough to solve, at least, basic lighting and social communication needs.  It is expected that these actions will improve the quality of rural life, and they will also have a positive impact on education, productivity, and overall social development.  The project is increasing the economic activity of the private sector and creating local jobs in the affected areas through the demand for renewable energy equipment, its manufacturing, and the associated operation and maintenance business.

The main environmental  effects expected will come from the development of solar house systems (SHS) markets in the Provinces involved, which are widely known for mitigating greenhouse emissions through the displacement of conventional electric power generation technologies.

The project is financed by the World Bank ($ 30 million loan), the Global Environmental Facility (GEF, $ 10 million Grant), and the Provincial Governments (in an amount similar to the first two sources taken together).  The companies that provide the service through concession contribute with one third of the initial investment in equipment and civil works.  The concessionaire recuperates his investment through the users monthly payments for the service.  The amount of these payments are generally around $ 10 per month (a substantial reduction to the $ 20 average expended today by rural homes in satisfying lighting and social communication needs).

After November 2000 the Program Coordinating Unit is developing a component related to fuel cells, technology and potential market, which are ahead amongst clean technologies for power generation and efficient energy conversion.  This attempt to incorporate fuel cells transcends rural electrification purposes; actually it is also regarded as a means to give Argentina a visible role in the application of this technology and generate a national capacity for research, development, and eventually manufacturing fuel cell units.

Another module concerning education and training in remote areas through electronic means is about to be implemented, as a result of the agreements originated in Washington talks.  This segment will be conducted in close collaboration with the Argentine Education Ministry.

 
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