2017 Business Plan and Strategy Renewable Energy Association of - - PowerPoint PPT Presentation

2017 Business Plan and Strategy

Renewable Energy Association of Nigeria

About Us

• An Umbrella for the other associations of renewable energy sector in Nigeria .
• Providing a unified platform for all Renewable Energy Companies, practitioners,

professionals and promoters to speak with one voice.

• Contribute to the development of (Private Sector friendly) policies.
• REAN will work to develop the market and improve the environment for its members.
• The Association was formally launched on November 24th, 2016.

Our Vision

To promote strategies that will improve the contribution of renewable energy up to forty percent (40%) of the National Energy Mix by 2030”.

Our Interim Executive Committee

President Vice President Treasurer Executive Secretary Habiba Ali is the managing director and CEO of Sosai Renewable Energies Company, one of the largest distributors of renewable energy appliances in Nigeria. Ali also co-founded the Developmental Association for Renewable Energies (DARE), a member of the Partnership for Clean Indoor Air and she holds an MBA and a BSc. in accounting. Hannah Kabir is the Managing Director of Creeds Energy and she started her career in the Public sector but here career experience spans customer support, marketing, corporate strategy, research and relationship management. She has a BSc in Business Economics and a MSc in Renewable Energy & Enterprise Management. Godwin Aigbokhan is a Clean Energy professional whose career has seen him perfom in various functions in the Natural Gas, Power and Renewable Energy sectors. He is currently The Renewable Energy Markets Advisor at the National Competitiveness Council of Nigeria where he provides support for RE projects to reach bankability Segun Adaju is the President/CEO, Consistent Energy Limited a social enterprise creating energy access for off-grid communities and small businesses through deployment of stand-alone, rooftop solar PV for productive use. He is also the lead consultant of Blue Ocean Nigeria, a renewable energy consulting firm.

Our Advisory Board Members

Advisory Board Advisory Board Advisory Board Advisory Board Dotun Tokun is a distinguished Electrical Engineer and the CEO

• f BOT Engineering (est. 1990) and Solar Mate (est. 1996) one of

the pioneer companies in this industry. He is a member of the Nigerian Society of Engineers, the Council for the Regulation of Engineering in Nigeria, the American Solar Energy Society and the Alliance for Rural Electrification. Olasimbo Sojirin is the Country Manager of Solar Sister

• International. She is a community organizer and an advocate for

climate change progress and women’s rights. She joined the British Council in 2004 where she worked on partnership projects and moved to a UNDP project to lead advocacy efforts for climate change legislation. Femi Adeyemo co-founded Arnergy in 2014 to provide 24 hours solar power in off grid rural poor villages for as low as US25 cent a day per home leveraging credit analytics and prepaid metering

• technologies. Femi is particularly skilled at co-ordinating the

deployment and Operation of large scale infrastructure projects, ranging from Solar Energy to Telecommunication. Ify Malo leads the P4All Campaign in Nigeria and is the CEO of Clean Tech Hub and the Energy Innovation Center. Ify has also held various Senior Policy Advisory roles in the Ministries of Power and Finance as well as the NERC. Ify is a qualified attorney with a focus on Global Policy, project design and management and is a Desmond Tutu Fellow and a Dwight Eisenhower Fellow

Segun Adaju, President Habiba Ali, Vice President Hannah Kabir, Treasurer Advisory Board Godwin Aigbokhan,

• Exec. Secretary

Secretariat Staff

Our Organogram

IEC Tenure to Expire December 2017

Our Supporters

Benefits of REAN membership

• Organizing Conferences, Exhibitions, B2B Matchmaking, Trade Missions, Webinars: The Solar

Future Conference, April 2017

• Capacity Building and Professional development (especially to access Finance)
• Leading the RE advocacy efforts for the promotion of local content in the RE sector
• REAN will provide a platform for lobbying the government to enact favorable policies in the

sector (e.g. Reduced Tariffs for RE equipment in the country).

• Establishing and enforcing standards within the sector through the development of quality

control tests.

• Legally registered as “REAN Network and Projects”
• EXCO to contest CAC rejection and secure preferred name.
• Association to be incorporated by Trustees
• EXCO in contact with Eminent Nigerians under consideration for BoT

Legal Status

RE Market Potential

• Enormous Potential
• Low Exploitation.

Solar Contributes 15% of On-grid Energy Mix Potential: 14.75GW Current exploitation: <2GW (Small & Large) Largest Project: Kianji (0.8GW) No contribution to On-Grid Energy Mix Potential (mainland): 2–4m/s @ 10m height Current Exploitation: None (Electronic WIS Available) Largest Project: 10 MW (Planned) No contribution to On-Grid Energy Mix Potential: 4.0 – 6.5kWh/m²/day Current Exploitation: 20 MW of PV (dispersed) Largest Project: New IPPs (Planned) Hydro Wind No Contribution to On-Grid Energy Mix Potential: Agric Residue,MSW, Animal Residue, Current exploitation: Meso Scale Largest Project: PRESCO Biogas Bioenergy

RE Market Potential

• Enormous Policy Progress made over the last two years
• National Renewable Energy and Energy Efficiency Policy
• Feed In-Tariffs
• 14 PPAs for Solar IPPs
• Rural Electrification Strategy and Implementation Plan
• Mini-Grid Regulations (Draft)
• National Grid Capacity Expansion projects
• Shift in the consideration of RE’s position in Nigeria’s Energy Mix
• Vision 30-30-30: Sustainable Energy for All Action Agenda and the National Renewable Energy

Action Plan (NREAP); RE to contribute 30% of On-grid Generation Capacity of 30GW by 2030.

• Planned issuance of Green Bond for RE projects in 2017

Membership Categories

01 02 03 04

Corporate bodies, NGOs, Academic Institutions Active in RE Space for at least Two Years Any Individual or Organization Interest in RE Fulfill Obligations to REAN Any Individual Undergoing Education/Training Recognized Institution Open to Individuals 1 Year Track Record in RE Space Business Operators or Advocate Individual Members Corporate and Institutional Members Student Members Associate Members

Membership Fees

S/No. Category Fees Amount 1

Individual Members Full Membership Fee N100,000 Annual Subscription N 50,000

2

Corporate and Institutional Members Full Membership Fee N100,000 Annual Subscription N 50,000

3

Associate Members Full Membership Fee N 50,000 Annual Subscription N 20,000

4

Student Members Full Membership Fee N 5,000 Annual Subscription Gratis

Our Members

5 Year Financial Projections

Membership growth in Year 1 to be driven by Corporate Membership

2 4 6 8 10 12 14 16 18

• 50

50 150 250 350 450 550 2017 2018 2019 2020 2021 MILLIONS (NAIRA) MEMBERSHIP YEARS Individual Corporate Associate Student Revenue

Increased visibility after Year 1 expected to drive other categories Steady Growth in Membership expected between 2017 and 2021 Revenue to be used for daily Operations, Salaries and Projects

Membership Commitments to Date

S/No Category Members Membership fee/Annual Dues Total (NGN) Outstanding Membership fees Total (NGN) Expected Annual Dues against

• Jan. 2017 (NGN)

1

Individual

2

Corporate and Institution 16 1,100,000 500,000 800,000

3

Associate

4

Student

5

In kind donations *1,360,000 TOTAL 2,460,000 500,000 800,000

• *NGN400,000 from HBF and $2,000 (NGN960,000) from P4All
• Channeled to REAN Launch.

2017 Expenses

Item Amount Opening Balance

1,100,000

Expense from REAN Funds *Video/Photo (Luke)

70,000

Identita

75,000

*Valoir Events

295,000

Lawyer Registration

55,000

*Eko Hotel Catering

425,000

Total Expenses

920,000

Bank Charges Closing Balance

180,000

• Channeled to REAN Launch.

Activities Planned for 2017

Secretariat Board of Trustees Develop Website

Secretariat Activities

Feb 2017 Feb 2017 Jan 2017 (Awarded)

Activities Planned for 2017

TSF Conference Advocacy Meetings with MDAs

Confirmed/Planned Events

Apr 2017 Quarterly 2017

AGM/Conference RECP Trade Mission

Dec 2017 Apr 2017

Key Advocacy Positions

SME Finance Lack of Awareness VAT & Tariffs Lead Government Agency

• 1. SME Finance
• REAN to partner with Government/Donors on design of Access to Finance schemes/funds

designed to support the market

• Grants to business to enable them to attract investment/bear higher interest
• Donor grants to national banks to onlend at lower rates
• More patient capital – Long tenure. Need for support along the financial continuum (from

startup to established business, grant to loan)

• Loan guarantees for the sector
• Need for training and support to banks to build skills/experience to do due diligence & more

effectively assess risk in the sector

• Linked to other approaches
• REAN Commitment to Quality – To help attract Investors
• Better Investor understanding of market as well as businesses
• TA to REAN members for Investment readiness

Key Advocacy Positions

• 1. SME Finance

Key Stakeholders

• Bank of Industry – recently launched new Solar Energy fund for SMEs
• Central Bank of Nigeria – MSME Fund, has window for renewables, not being used as bank

requirements too tough

• Other State-owned banks – Bank of Agriculture, Development Bank of Nigeria
• DFIs planning to do more in future – (AfDB, IFC/DFID

Allies

• Winrock & USAID on Central Bank, UNDP/UNEP on Bank of Industry,

Specific Activities

• Consultation with REAN Members (re: Access to Finance)
• REAN Access to Finance Briefing Note
• Investment-Readiness Training for REAN Members
• Bank of Industry & CBN Engagement

Key Advocacy Positions

• 2. Lack of Awareness
• ‘Above-the-line’ media campaign, including print, online, radio, social media
• ‘Below-the-line’ campaign that leverages relationships of trust & peer-to-peer endorsement –

roadshows/marketplaces.

• Focus on states that already have an RE drive

Key Stakeholders

• Mainstream media – print, radio, online
• Schools (via State Primary Education boards) and Universities (via Tertiary Education Fund)
• Health centers, via Primary Healthcare Board
• Faith communities and women’s cooperatives,
• MFIs, NGOs & CBOs, Farmer’s Associations, Agricultural Cooperatives
• Humanitarian sector – to create tender opportunities & advise on integrating DRE into

programmes.

Key Advocacy Positions

• 2. Lack of Awareness

Allies

• Power for All, Christian Association of Nigeria, JNI (Islamic Association),
• Nigerian Market Women’s Association, Nigerian Women’s Trust Fund, MAN

Specific Activities

• Work with Media Experts to create a Communications Plan
• Power for All Media Training
• ‘Above-the-line’ Media Campaign – media pitches & outreach
• CSO & Public Institution Engagement for ‘Below-the-line’ Demand Creation

Key Advocacy Positions

• 3. VAT and Tariffs
• Short term

 More clarity: HS codes & VAT/tariff rates inconsistently applied, by Govt bodies.  Counter-productive.  Discouraging local assembly as parts are subject to higher tax than completed products.

• Long Term

 0% VAT/tariffs on all products under relevant HS codes  Dedicated team within Customs – RE Desk at Nigeria Investment Promotion Commission  Nigerian Ports Authority Capacity building/support

Key Stakeholders

• Customs
• Trade & Tariff Desk in Budget Office of the Ministry of Finance
• Port Authorities
• Ministry of Power
• Presidential Advisory Power Team

Key Advocacy Positions

• 3. VAT and Tariffs

Allies

• Rural Electrification Agency,
• Renewable Energy and Rural Power Access at Ministry of Power,
• High-level Customs personnel,
• International Agents e.g. Crown Agents,
• Winrock

Specific Activities

• Consultation with REAN Members on VAT/Tariffs experience
• Briefing Note on VAT/Tariff Clarity
• Engagement with Ministry of Finance, Power, Customs etc

Key Advocacy Positions

• 4. Lead Government Agency
• REAN needs Champions/Counterpart Agencies with Government to work with
• Meet quarterly with Market Intelligence to advance the sector.

Key Stakeholders

• Rural Electrification Agency (Including Zonal and State Coordinators)
• Renewable Energy & Rural Power Access Department of the Ministry of Power
• Other Stakeholders could include the Energy Commission of Nigeria and State Rural

Electrification Boards

Specific Activities

• MoU with REA
• Quarterly meetings with REA and/or Renewable Energy & Rural Power Access Team

Key Advocacy Positions

Sector Initiatives

Market Data Technical Advisory for Members Member Commitment to Quality

• 1. Market Data
• REAN members can share data as long as it’s kept confidential under NDA.
• Data sent to a third-party aggregator & not published unless there are at least three data points

– this would boost credibility.

• Report to be published quarterly, would help attract members & investors, establish credibility

as information hub

Key Stakeholders

• SEPAN
• Energy Commission of Nigeria – funds data collection/research already.
• Nigerian Bureau of Statistics, National Population Commission, National Planning Commission –

could integrate DRE questions into their surveys

Sector Initiatives

• 1. Market Data

Allies

• Power Africa, GIZ, Lighting Africa, GOGLA

Specific Activities

• Identify third party aggregator
• Sign NDAs with REAN Members
• Develop questionnaire
• Baseline followed by Quarterly Market Performance Reporting

Sector Initiatives

• 2. TA for Members
• TA for smaller, earlier-stage enterprises could focus on:

 Investment-readiness – advice on business plan development & implementation  Promotion of local content  Staff and agent/distributor training on all aspects of business operations  Certification – meeting certification requirements

• REAN Market Assessment services for companies, aid agencies, NGOs.

Key Stakeholders and Allies

• AfDB, SE4ALL, IFC Lighting Africa
• GIZ / NESP and RECP
• German & Dutch Embassies
• EU
• Winrock

Specific Activities

• Consultation with REAN members re: TA needs
• Develop proposal & fundraise

Sector Initiatives

• 3. Commitment to Quality

Internal

• Products meet relevant international standards (Lighting Africa/IEC)
• Services:

 After-sales care commitment (12 month guarantee?)

• Environmental Standards (e.g. Battery Disposal)
• Customer hotline & email for complaints
• Independent verification of quality
• Longer term – Scratch card/Barcode verification of product authenticity

External

• Standards Organization of Nigeria

Sector Initiatives

• 3. Commitment to Quality

Key Stakeholders and Allies

• Standards Organization of Nigeria
• REAN Members
• Customs
• Nigeria Consumer Protection Council
• Heinrich Boll Foundation

Specific Activities

• Design Member Commitment to Quality
• Design customer hotline
• Offer training for certification

Sector Initiatives

Activities Details

• Est. Cost (NGN)

1

Establish Secretariat Website Development 200,000 Office Space 1,500,000 Office Equipment Desk Set (2) 300,000 Computer 200,000 Internet access 120,000 Phone Credit/CUG SIM cards 180,000 Logistics 500,000

2

Events AGM 3,000,000 Conference/Workshops 1,500,000 Webinars/Podcasts 1,000,000 IEC meetings 400,000

3

Public Relations 2,000,000

4

Salaries

• Exec. Sec.

3,600,000 Secretariat Staff 360,000

5

Total 14,860,000

2017 Budget

Member Engagement Platforms

• In order to deliver specific activities that would realize the advocacy positions and deliver

the sector initiatives outlined, REAN members would be organized into 4 ad-hoc working groups.

• 1. FINANCE

 SME Finance  TA for Businesses  Market Data

• 2. POLICY AND ADVOCACY

 VAT & Tariffs  Lead Government Agency

• 3. QUALITY

 Commitment to Quality  Energy Efficiency

• 4. AWARENESS AND COMMUNICATIONS

Communications Platform

MEETINGS

• Executive Secretary conference calls with Advisory Committee and Executive Officers

weekly, face-to-face meetings bi-monthly.

• Working Groups – monthly conference calls. Executive Secretary attends all working groups.
• Initial focus would be detailed planning & budgeting for 2017 plan
• Quarterly face-to-face & call-in meetings – open to all members
• Annual AGM

REGULAR COMMUNICATIONS

• REAN List of Member Contact Details
• Email

Member Briefing: Update

• n

REAN Activities, Relevant Events & Funding Opportunities to be broadcast specifically to REAN members

• Whatsapp Groups.
• Email Groups
• Website – for external audiences

MEETINGS

• Develop draft Policy Positions for the Working Groups
• Executive Committee & Advisory Board to meet to flesh out 2017 plan/budget
• Launch member communication – mailing list, Whatsapp group, website:
• Finalize & Initiative for working groups
• Initial advocacy visits:

 Sign MoU with Rural Electrification Agency

• Recruit Board of Trustees
• Member recruitment – presentation of 2017 plan for potential members
• Presentation of Plans

Next Steps

Many thanks for your attention