9 September 2008

Micro Hydro Standardization

ISO (International Organization for Standardization) told me that standardization process usually starts with a request from industry. The industry is the front-runner of technological research. They found ways to make science friendlier to our daily lives. Industry has the reasons to push newly found technology as standard because standard means safe and customer friendly. Standard is market oriented. If industry complies with a standard then it has the chance to penetrate market better. I believe this only works in a market that has “quality awareness”.

Standard can also act like “protection” for certain industry. When industry can push certain technology to be a standard then it is sure that the supporter of that particular technology is ready to produce. This means anybody that cannot achieve the particular standard (maybe due to capital reason) will not able to have little share of the market. Someone or a group will certainly monopolize the market. So there is also a bad side of standard.

Therefore, when there is a plan to standardize micro hydro in Indonesia, the first thing that came to my mind is avoid “monopoly”. This future standard should not protect certain established industries (or manufacturers) and close the chance of developing manufacturers.

How can the standard accommodate the developing workshops? Training and maybe, once again maybe, capital support from government might solve the problem. Certain standard can be achieved, especially concerning specific products, using certain set of machinery. Improving capacity of work force to enable them to operate the advance machinery and support the developing workshops with hardware capital might work. This strategy is a bit dangerous because it opens the chance for corruption (procurement of machinery) and cronyism (only your friend’s workshop got the training and the tools).

Any other strategies? Make double standard (i.e. grade 1, grade 2, and more). Grading the products according to the production process used gives wider spectrum of the standard. For example: turbine is produced in small workshop with limited tools. It is only painted with epoxy paint to protect from rust. The rotor disc is cut using manual cutter. This kind of turbine is considered Grade-2. Grade 2 turbine is cheaper and must at least have 45% turbine efficiency.

Grade 1 turbine is sand blasted and painted with epoxy paints to protect from rust. The rotor disc is cut using laser cutting or water cutting. It is produced in advance workshop (established workshops). Grade 1 turbine is more expensive and must at least have 70% turbine efficiency. That is the second strategy. I prefer the second because the planner can calculate better. S/He will have more options for the budget. This strategy opens more chance to new workshops to enter the business. I think this strategy is fairer. The market will decide. If the budget is limited then go for the second grade if not go to the first grade. I believe there are more strategies to prevent monopoly and open more chance for new comers to compete.

But standard, especially micro hydro quality standard, is not only about the manufacturing of turbines. It should cover all aspect of micro hydro development. India and Nepal and Sri Lanka have set their standards. Their standards cover all aspects, from planning to delivering products. These kinds of standards might also be applicable in Indonesia. Let us see the government’s idea on this…

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