E7/UNEP Rural Electrification Workshop Nairobi March 1-3, 2006 - - PDF document

e7 unep rural electrification workshop
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E7/UNEP Rural Electrification Workshop Nairobi March 1-3, 2006 - - PDF document

E7/UNEP Rural Electrification Workshop Nairobi March 1-3, 2006 Introduction The aim of this workshop was to enhance the capacity of local stakeholders in developing countries to undertake rural electrification projects with special emphasis


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E7/UNEP Rural Electrification Workshop

Nairobi March 1-3, 2006

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e7-UNEP Rural Electrification Workshop 2/9

Introduction

The aim of this workshop was to enhance the capacity of local stakeholders in developing countries to undertake rural electrification projects with special emphasis on renewable energy applications. The Rural Electrification Workshop was successfully conducted in Nairobi (Kenya) at the beginning of March 2006. The workshop was attended by participants from 10 African countries and international institutions for a total of 50 participants (28 sponsored). The objectives of e7/UNEP Rural Electrification Rural Electrification Workshop included:

  • Identify the main challenges of rural electrification, based on a review of project experiences

covering all stages of the cycle;

  • Review best practices and determine effective approaches by which to address the

challenges of rural electrification in the local context;

  • Specify roles that e7 members and other stakeholders can play in ensuring that rural

electrification projects are consistent with sustainability principles; and

  • Improve the ability of rural electrification project developers to develop project proposals that

are eligible for e7 funding and/or technical support. In order to achieve the above mentioned objectives, the workshop was structured in a sequence

  • f four major topics, which have been identified as crucial for rural electrification projects:
  • Project Identification;
  • Project Development,
  • Project Implementation,
  • Project Operation.

As a workshop output a series of recommendations were identified and communicated to e7 members and participants at the World Bank's 'Energy Week', held in Washington DC in March. The Nairobi event was the second in a series of three being delivered in partnership with UNEP.

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e7-UNEP Rural Electrification Workshop 3/9

Workshop Major Recommendations

  • Representatives from Governments, Agencies, utilities, CBOs and NGOs, private sector :

consultants, investors and operators, and international financing institutions met for three days of intense exchange of experience and discussions, under UNEP/e7 auspices

  • 13 countries, from EAC and SADC, as well as Senegal attended
  • In order to promote solutions for rural electrification, key to local development and MDG

achievement, the workshop prepared the following recommendations to be presented by e7 and UNEP to the relevant forums, including World Bank Group Energy Week INSTITUTIONAL

  • Rural Electrification must be a priority in governments’ agendas, in order to increase

production in rural areas.

  • An institutional, legal regulatory and fiscal framework should be defined and adequate

budget funding should be available.

  • Each government should identify main institutions namely regulator, local governments,

national utility, rural agency … and clarify responsibilities for each institution.

  • Planification process (grid-non grid)(rural agency-electric utility)

To be implemented and updated

  • The government should have a long term vision of “rural electrification for economic

development”, including a multi-sector approach associating the private sector, and mobilise the necessary means

  • Creation of a rural electrification agency is recommended to enhance the development of

RE (planification, mobilization of finance).

  • Community capacity building and cross border and regional integration must be sought
  • Coordination of external donors is of paramount importance

TECHNOLOGIES

  • Renewable sustainable energies including hybrid should be promoted
  • Proven technologies based on available resources (neutrality) and adequate to demand

must be chosen

  • Design standards and normalized RE products, adapted and adaptable to the long term

planning process, are to be implemented

  • Research institutions should be involved and centers of excellence for particular

technologies should be supported. FINANCE

  • Need for capital subsidies, thus governments should continue to play a leading role in

RE.

  • Development agencies (multilateral and bilateral) should provide the necessary subsidies
  • Resource assessment, project developments costs and capacity building should be also

eligible for total or partial subsidies

  • Monitoring and evaluation of the project should also be taken into consideration
  • The barriers to local and small size commercial finance availability should be removed

(guarantees, securities)

  • External donors and finance institutions should coordinate.

BUSINESS MODEL

  • The business model should be financially viable and sustainable taking into account the

previous recommended capital subsidies and alleviation of commercial bank barriers

  • The business model should be based on productive use.
  • Financial involvement of local stakeholders should be sought in implementation as well

as the commercial aspect.

  • Working capital should be provided by line of credits.
  • Consumer installation cost should be included in the business plan
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e7-UNEP Rural Electrification Workshop 4/9

PRIVATE SECTOR INVOLVEMENT

  • Build confidence between private sector, government organization and communities.
  • Accept that RE should be a profitable business.
  • Incentives through finance and business models.
  • Open, transparent and fast track procedures for development subsidies, authorizations

and investment funding

  • Data collection and adequate (GIS) mapping of existing infrastructures and housing

should be made be made available for project developers.

  • Adequate allocation and mitigation of risks between acting stakeholders must be

discussed and implemented DISSEMINATION OF INFORMATION

  • Access to success stories, good practice examples and exchange programs should be

facilitated by multilateral agencies (UNEP, UE and other institutions) and should help their coordination.

  • Reliable data bank (including resource availability, current activities, training and

exchange programs etc)and website, managed and maintained by existing structures (Ministries?) to be promoted

  • Legal framework necessary to ensure their maintenance and budget
  • Research institutions should be involved and centers of excellence for particular

technologies should be supported CDM

  • Normal Carbon Fund procedures are too expensive
  • Pooling of projects to share transaction costs (small and large) (Example : UNDP MDG

Carbon Facility)

  • All small scale Renewable Projects in Africa to be considered as a group for Carbon

Fund

  • Local capacity building needed in the countries (local authorities)
  • Necessity of simplified methodologies (baselines) to be recognized by the CDM executive

board

  • To promote all projects to the DNA (Designated National Authority) in each country

before their international meeting in May 2006 in Germany

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e7-UNEP Rural Electrification Workshop 5/9

Programme

DAY 1 (March 1, 2006)

Workshop Registration 08.30 UNEP Gigiri Workshop Opening and Introduction 09.00 09.15 09.30 09.50 Welcome UNEP & rural electrification e7 and Rural Electrification, contribution to Sustainable Development and overview of workshop approach and objectives of workshop Housekeeping Mr Mwangi Kiunjuri Assistant Ministry of Kenya Zhija Wang, Officer in charge, Division of Regional Co-operation, UNEP e7 Conference Chair: Andy Riley, Scottish Power e7 Conference Chair Session 1.1 – Scene Setting e7 Conference Chair 10.00 10.10 Session introduction - short summary of session aims and introduction of presenters Presentation 1 – Overview of situation and developments across region, drawing on presenter’s experience + feedback from countries e7 Conference Chair Mike Bess Energy for Sustainable Development 10.40 Coffee Break Session 1.2 – Scene Setting (continued) 11.00 11.30 Presentation 2 – Highlighting issues identified from invitee questionnaire Open forum for participants to briefly highlight key issues and concerns regarding rural electrification Dr Njeri Wamukonya UNEP e7 Conference Chair 12.00 Lunch Break 13.15 U UN NE EP P a an nd d G GE EF F f fo

  • r

r R Ru ur ra al l E El le ec ct tr ri if fi ic ca at ti io

  • n

n I In n A Af fr ri ic ca a C Ca at th he er ri in ne e V Va al ll le ee e-

  • S

SP PO O Session 2.1 – RE Identification Session Chair: Ms. Justina Uisso Senior Research Officer, Ministry of Energy and Minerals, Tanzania 13.45 14.05 14.25 14.45 15.00 Identifying potential RE Projects - overview

  • with special focus on: institutional (policy)

framework

  • also: regulatory issues, socio-economic

aspects, planning, cross sector identification) Case study: Lokhoho Madagascar Case study: ASER Senegal Key issues and presentation of discussion topics

  • turning theory into practice (establish 3

discussion groups) Discussion groups (3 off) Jean Jaujay - EDF Ms Pascale Bonzom (UNDP) and/or Dr Sascha Thielman (GTZ) Aliou Niang Jean Jaujay - EDF Facilitators

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e7-UNEP Rural Electrification Workshop 6/9

16.00 Coffee Break Session 2.2 – RE Identification 16.30 17.30 Feedback to plenary Summary of days findings and close of day Facilitators Session chair

Day 2 (March 2, 2006)

Session 3.1 – Project Development Session Chair: Mr Patrick Nyoike, Permanent Secretary, Ministry of Energy, Kenya 08.30 08.45 09.05 09.25 09.45 Introduction and overview to the day and housekeeping Developing RE Projects - overview with special focus on:

  • institutional (policy) framework, finance and

technical aspects

  • private sector involvement and carbon finance

Case study: Public-Private Partnerships Case study: Energy & Poverty, EU Support Programmes Key issues and presentation of discussion topics

  • turning theory into practice (establish 3

discussion groups) e7 Conference Chair e7 member – Jonathan Curren (SP) Mr Melessaw Shanko, Director, MGP/Megen Power Ltd Mr Derek Fee Infrastructure section, Delegation of the European Commission to the Republic of Kenya e7 member – Jonathan Curren (SP) 10.00 Coffee Break Session 3.2 – Project Development 10.15 11.15 12.30 Discussion groups (3 off) Feedback to plenary Summary of session findings Group facilitators Session Chair 12.45 Lunch Break Session 4.1 – Project Implementation Session Chair: Dr Sascha Thielman, GTZ, Madagascar 14.00 14.20 14.40 15.00 Implementing RE Projects (overview) with special focus on:  finance, technical and environmental aspects  human capacity building Case study: Mpeketoni Electricity Project Case study: West Nile Uganda Key issues and presentation of discussion topics

  • turning theory into practice (establish 3

discussion groups) Guy Marboeuf: EDF Mr Dawson Mwangi/ Mr Paul Kituku Mutinda, MEP, Kenya Mr Kevin Kariuki, Head of Infrastructure, Industrial Promotion Services, Uganda/Kenya Guy Marboeuf: EDF 15.15 Coffee Break Session 4.2 – Project Implementation 15.30 16.30 17.15 Discussion groups Feedback to plenary Summary of days findings and close of day Group facilitators Session Chair Special Session – EU Coopener Project MIRREIA

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e7-UNEP Rural Electrification Workshop 7/9

17.30- 18.30 Presentation and discussion on EU Coopener Project – MIRREIA (Mitigating Risk to Investment in Rural Electrification in East Africa) See separate

  • doc. for details

Day 3 (March 3, 2006)

Session 5.1 – Project Operation Session Chair: Mr Martin Masemola Senior Mgr., Integrated National

  • Elec. Programme, South Africa

08.30 08.45 09.05 09.25 09.45 Introduction and overview to the day and housekeeping Operating RE Projects - overview with special focus

  • n: finance, technical and environmental aspects

Case study: Kalane Hill Mini Hydro Case study: Kwazulu Energy Services /Nura Key issues and presentation of discussion topics - turning theory into practice (establish 3 discussion groups) E7 Conference Chair Mr Enrique Rodriguez-Flores – RWE Mr Charles Rea, Zengameni Power Company, Zambia Mr Rolf Niemand, MD NUON RAPS, South Africa Mr Enrique Rodriguez-Flores – RWE 10.00 Coffee Break Session 5.2 – Project Operation 10.30 11.30 12.15 Discussion groups Feedback to plenary Summary of days findings and close of day Group facilitators Session Chair 12.30 Lunch Break Session 6 – Conclusions 14.00 14.30 15.00 Feedback session Wrap up and summary of workshop finding Closing remarks e7 Conference Chair e7 Conference Chair Mr Patrick Nyoike, Permanent Secretary, Ministry of Energy, Government of Kenya 15.30 End of Workshop

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e7-UNEP Rural Electrification Workshop 8/9

Workshop Participants

e7 and UNEP team

  • 1. Andy Riley (e7-SP), United Kingdom
  • 2. Jonathan Curren (e7-SP), United Kingdom
  • 3. Enrique Rodriguez Florez (e7-RWE), Germany
  • 4. Jean Jaujay (e7-EDF), France
  • 5. Guy Marboeuf (e7- EDF), France
  • 6. Luis Calzado (e7 General Secretariat), Canada
  • 7. Njeri Wamukonya (UNEP Regional Office for Africa), Kenya

Participants sponsored by the e7 Ethiopia

  • 8. Girma Alemu, Project Appraisal &Licensing Team Leader
  • 9. Melessaw Shanko, MEGEN Power Ltd. Managing Director

Kenya

  • 10. Frederick O. Nyang, Electricity Regulatory Board
  • 11. Peter M. Okwany, Rural Energy Specialist
  • 12. Nganga Munyu, Head of Rural Electrification Department
  • 13. Paul Mutinda Kituku, Mpeketoni Electricity Project executive
  • 14. Dawson Mwangi Kinyanjui, Mpeketoni Electricity Project executive

Lesotho

  • 15. Hlopheho Moses Ntlamelle, Department of Energy Lesotho
  • 16. Sello Raymond, Project Engineer Ministry of Natural Resources
  • 17. Cosmas Gutu, Lesotho Electricity Corporation Managing Director

Madagascar

  • 18. Hary Andriantavy, General Secretary
  • 19. Rasolojaona Rivoharilala, Executive Secretary
  • 20. Pascale Bonzom, Global Compact/GSB Initiative, Political Strategies Unit

Namibia

  • 21. Ulrich HArmut Von Seydlitz, Electrical Engineer
  • 22. Kavepurua Kaventuna, Electrical Engineer Ministry of Mines and Energy

Rwanda

  • 23. Silas Ruzigana, Energy advisor to the ministry

South Africa

  • 24. Martin Masemola, Senior Manager Electrification Planning
  • 25. Luis Anton Olivier, Electrical Engineer

Tanzania

  • 26. Justina Uisso, Senior Research Officer , Ministry of Energy and Minerals
  • 27. J. Ngeleja, Electrical Engineer
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e7-UNEP Rural Electrification Workshop 9/9

Uganda

  • 28. Frank Sebbowa, Electricity regulatory Agency
  • 29. Kevin Kariuki, Head of Infrastructure , Industrial Promotion Services

Zambia

  • 30. Arnold Simwaba, Senior Electrification Officer
  • 31. Wakunda Siwakwi, Acting Economic Specialist
  • 32. Charles Rea, Developer and Investor
  • 33. James Manda, Energy Regulation Board

Senegal

  • 34. Arnold Simwaba, Information System Director
  • 35. Aliou Niang, ASER General Manager

Non- sponsored participants

  • 36. Anne Rehner, GTZ Energizing Africa
  • 37. Holger Liptow, GTZ Energizing Africa
  • 38. Anani Appolinaire, Secretary General Adviser
  • 39. Sacha Thielman, GTZ Infrastructure Policy Adviser
  • 40. Rolf Niemand, MD NUON RAPS South Africa
  • 41. Isaac Sokopo, Corporate Specialist Eskom
  • 42. Andrew Yager, Sustainable Energy Adviser
  • 43. Andre Ramon Silva, Ministry Energy Mines Brazil
  • 44. Izael Pereira da Silva, Centre for research in energy conservation
  • 45. Mike Bess, ESD Director International Division
  • 46. Tasco Mbinda, Regional Energisation Manager Zambia
  • 47. G.S. F Matlawe, Regional Energisation Manager Zambia
  • 48. Mohau Nketsi, Regional Energisation Manager Zambia
  • 49. Greal Ambani, Regional Energisation Manager Zambia