Programme profile

FIDECOP - Portable Wood-Burning Stoves Innovation and Development Fund

Programme Index Listing

Location
Peru
Main implementer
Soluciones Practicas (Practical Action)
Donor
BMZ (German Government)
Duration
2015 - 2017
Total budget
US $800,000
Annual budget
US $300,000

Project description / objective

Development of large-scale manufacturing of improved portable wood-burning stoves (CMPL) that respond to the needs of people living in surrounding cities and rural communities.

The aim is to generate incentives for the promotion of stove manufacture by small and medium enterprises (SMEs) -  including gas stoves, improved stoves and/or solar stoves. The objective is to foster research and development of new technologies in the country, resulting in improved sales for enterprises.

The project objective was not to influence other enterprises to adopt CMPL, but to demonstrate, in an objective way, that financing based on results is a tool that accelerates research and development in SMEs. The goal is to replicate these strategies and to boost the value chain.
 

Market systems focus

Improved portable stoves

In 2012 biomass cooking fuel was used by 31 per cent of Peruvian households. This is especially the case in rural areas where 'in situ' improved stoves fall short of achieving the required technical specification. As a result, industrial production of these stoves is a challenge.

Investment in research and development of the different models of improved portable stoves manufactured in the country leads to improved opportunities for SMEs. The aim is to produce on a large scale at low cost and so promoting local development of SME competition.

Programme interventions

Boost the value chain of the renewable energy market by means of innovation, manufacture and commercialisation of improved portable stoves.

1. Design and implementation of a research and development contest

Design and implementation of a research and development contest for local enterprises in order to promote portable stove innovation. Seven enterprises were selected.

2. Development of SME business and marketing plans

Creating incentives for SMEs to develop business and marketing plans. Organisation of internships at the National Training Service for Building Industry (SENCICO) to gain SENCICO certification. Improvement of enterprise's commercialisation system (indicator: total market sales).

3. Strengthening commercial skills of local micro-entrepreneurs

Strengthening commercial skills of local micro-entrepreneurs who are involved in value chains of improved portable stoves - resulting in the formulation of marketing plans and business models.

4. Incentives, monitoring and verification

Incentives, monitoring and verification of portable stoves sales by micro enterprises that participated in the contest.
 

Notable results (systemic change, poverty impact)

1. Seven entrepreneurs participated in international technical visits to enterprises located in Brazil, Mexico, Portugal and Honduras that work within the same sector. Visits were aimed at sharing experiences related to management, manufacture and commercialisation models of improved portable stoves.

2. Four enterprises made alliances with ten institutions that offer financial services to forthcoming rural users (agricultural producers' associations) of the Andahuaylas, Ayacucho, Junin and Puno regions of Peru.

3. Seven enterprises certified their improved stoves models in line with SENCICO requirements.

4. During the commercialisation period (Nov. 2016 – June 2017):

  • five enterprises sold 737 improved portable stoves (direct sales and sales by means of distributors)
  • 200 stoves were sold to institutions
  • 537 retail sales in 15 regions of the country -  especially in Cusco, Puno and Cajamarca (30 June 2017)

1,500 stoves are expected to be sold by December 2017.

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