Energy, a Driver of Development

Two thirds of the global population does not have access to modern, reliable energy sources, even though energy is a key driver of economic development and crucial for cooking, communicating and medical care. As an energy producer, we have an important role to play in this area and have been testing various solutions for more than a decade.

Energy Solutions for Underprivileged Populations

Since 2010, we have structured our efforts around an innovative project focusing on four areas:

• Fuel poverty in OECD countries (for transportation and heating).
• Photovoltaic solar power in non-OECD countries.
• Short biofuel supply chains (biofuels produced and used locally).
• Local development and use of gas produced at our sites.

The program's uniqueness lies in its two-pronged approach, which combines social commitment with economic viability.  

The challenge is to offer low-income populations affordable energy solutions that are modern, reliable and sustainable and have a lower environmental impact. But in order to be sustainable, the business model must also be cost effective. This means going beyond a purely philanthropic approach to develop a new business model.

The First Pilot Phase for Photovoltaic Solar Power Solutions

In January 2011, we initiated a pilot phase in three countries — Cameroon, Kenya and Indonesia. The aim is to help underprivileged populations gain access to lighting and communication solutions, such as cell phones and radios, by marketing affordable photovoltaic solar power products.

The challenges were numerous. In addition to a tailored offering, with quality products at an affordable price, the program also required an innovative, dedicated, local distribution network combined with appropriate services such as solar power awareness and information campaigns, maintenance and microfinance.

In Africa, we intend to leverage our service station network and create local distribution channels by training local buyers.
In Indonesia, where E&P is leading the project, we will forge partnerships with marketers and develop support services such as microcredit and maintenance.

The decision whether or not to deploy the project on a large scale will be made at the end of the year.

As one of the first energy companies to explore this avenue, we still have much to learn. That’s why we enlist the help of various partners, from development experts to local businesses.

Strengthening our Local Integration in the Long Term

By addressing the basic needs of local communities, these programs reflect our day-to-day objectives and concerns, and also contribute to our integration in host countries. In the longer term, they will also give us a solid foothold in tomorrow’s emerging markets. As a result, we leverage these projects to drive innovation.

Some Pilot Programs Tested in Recent Years

Solar Energy for Rural Communities

A rooftop solar panel on a house in Morocco.

Since 2000, we have conducted a number of pilot programs designed to facilitate access to energy for those without, particularly in Africa. The solutions tested include the sale of LPG for use by remote and underprivileged communities, gas-fired power generation for communities neighboring our sites, diesel generators for micro-grids or groups of local artisans, and pilot short biofuel supply chains (biofuels produced and used locally).

We have also been directly or indirectly involved in several decentralized rural electrification projects, most of which are based on solar power.

In Morocco, the photovoltaic kits installed by Temasol, a wholly owned subsidiary of Tenesol, were supplying around 25,000 customers in sparsely inhabited areas by the end of 2010.

In South Africa, KES, a rural energy services company (Total 35%, EDF 50%, Calulo 15%) aims to provide some 40,000 households in the KwaZulu-Natal and Eastern Cape provinces with photovoltaic solar power. At the end of 2010, more than 11,000 households had already been equipped with an individual solar power kit installed and maintained by KES.

Biofuels for Local Production and Use

Harvesting jatropha on a plantation in Teriya Bugu, Mali.

In Africa, biomass is very often the only local resource available for use as an energy source. This situation has prompted us to research jatropha, a hardy, inedible plant that requires little fertilizer and whose seeds produce an oil that can be used in the place of diesel fuel for certain uses (power generation, agricultural engines).
Total is taking an innovative, gradual and prudent approach to jatropha farming. Pilot short biofuel supply chain projects are currently being conducted in several countries, including Senegal and Mali, and a study is also underway in Burkina Faso.

In Mali, in the village of Teriya Bugu, we have been assessing the energy potential of jatropha since 2007, in partnership with technical experts and NGOs like the Association des Amis du Père Bernard Verspieren (AAPBV). The project aims to demonstrate the viability of a stand-alone rural electrification model based on a short supply chain. The Teriya Bugu experimental farm, ecotourism resort and laboratory for renewable energy use has 65 employees and benefits 5,000 people. In February 2010, an organized jatropha production chain was inaugurated, with 40 cooperatives. The aim is to ensure that the project is totally self-sufficient within four years.

Two New Issues Under Consideration — Gas Development and Fuel Poverty

Gas Development

E&P subsidiaries in Nigeria, Congo, Yemen and other countries are currently involved in access to energy projects for local communities based on the development and use of gas produced at our sites. In several countries, such as Nigeria, Congo and Uganda, we are now looking into the possibility of developing more participatory business models that bring together various stakeholders, including the host government, local power distribution companies and residents’ associations.

Fuel Poverty

Fuel poverty is becoming an increasingly widespread issue in France, throughout Europe and in many OECD countries. Nearly 15% of the population no longer has the resources necessary to meet their heating and transportation needs.

Our involvement in various businesses and expertise in various areas make us a key stakeholder in this issue — as a marketer of automotive fuels, as a supplier of heating solutions (fuel oil and natural gas), and as an operator in the construction market, primarily via our Chemicals business.

Since early 2011, we have been exploring a number of options that could enable us, in partnership with public authorities and non-profit organizations, to contribute to the emergence of more affordable energy solutions for this segment of the population.