Shell Solar Indonesia launches trial sales on solar power motors<\/p>\n
Phelim Kyne, Dow Jones\/Jakarta<\/p>\n
The Indonesian unit of Royal Dutch Shell PLC has begun trial
\nsales of consumer solar power generators as part of efforts to
\ndiversify the country's energy supply sources, a senior company
\nexecutive said recently.<\/p>\n
Shell Solar Indonesia began door-to-door sales operations on
\nthe island of Sumatra in August, targeting rural households
\ncurrently unconnected to the national electricity grid, Roberto
\nMoran, Country Chairman of Shell Companies of Indonesia, told Dow
\nJones Newswires.<\/p>\n
World Bank data indicate roughly 43 percent of Indonesia's 220
\nmillion people don't have electricity and that electrical
\nconnection costs in rural areas are 33 percent higher than in
\nurban areas.<\/p>\n
\"Indonesia is similar to China, the Philippines and Sri Lanka
\nin that we're looking at (selling to) homes in areas where
\nthere's significant rural populations not linked to electrical
\npower grids,\" Moran said.<\/p>\n
Shell Solar, part of the overall parent's Shell Renewable
\ndivision, has been active for more than 30 years and has
\noperations in 75 countries.<\/p>\n
The company is marketing its photovoltaic Solar Home Systems
\nproduct, which includes a solar panel that converts sunlight into
\nelectricity, and a storage battery.<\/p>\n
Shell currently markets engine lubricant products in Indonesia
\nand is poised to launch a branded line of retail gasoline filling
\nstations in the country.<\/p>\n
The company's entry into the renewable energy field in
\nIndonesia coincides with the government's launch of an ambitious
\nenergy diversification and conservation campaign aimed to reduce
\nIndonesia's domestic crude oil consumption to 30 percent of the
\ncountry's total energy mix from the current level of 60 percent
\nwithin 10 years.<\/p>\n
The government plans to cut crude oil consumption by
\nincreasing the use of domestically-sourced liquid natural gas and
\ncoal. That plan is essential to reduce Indonesia's skyrocketing
\nimport costs for crude oil while global prices hover around a
\nrecord high of US$65 a barrel.<\/p>\n
But Moran cautioned that while solar power is an alternative
\nenergy source that offers \"grassroots quality of life impact\", it
\nisn't a quick fix for Indonesia's energy supply challenges.<\/p>\n
\"In the end, solar's contribution will never be a significant
\n(proportion of Indonesia's energy mix), but it does make
\nsignificant impact on the customer...in that children can have
\nlight at night to study and people can be more productive,\" he
\nsaid, without elaborating on what proportion of Indonesia's
\nenergy needs solar power could provide.<\/p>\n
Shell Solar is targeting lower-income households in Sumatra
\nwith cash or access to credit to pay for the firm's Solar Home
\nSystems, Moran said, without elaborating on a price-per-unit.<\/p>\n
The company is working with at least one financial institution
\nto provide credit financing for such purchases, Moran said,
\nwithout naming any respective banks or credit finance companies.<\/p>\n
Shell Solar will evaluate consumer demand for its products in
\nSumatra before considering any possible expansion of its
\nmarketing efforts in other parts of Indonesia.<\/p>\n
\"Within two years we intend to provide 2,000 (units),\" Moran
\nsaid.<\/p>\n
\"We'll see how it goes, and if we are successful we can move
\non to other areas.\"<\/p>",
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