NIGERIA ELECTRIFICATION PROJECT- AFRICAN DEVELOPMENT BANK COMPONENT - - PowerPoint PPT Presentation

19th MAY 2020

NIGERIA ELECTRIFICATION PROJECT- AFRICAN DEVELOPMENT BANK COMPONENT 2 MINI GRID DEVELOPERS VIRTUAL ROUNDTABLE

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your logo

NEP/AfDB Components & Objectives

Solar Hybrid Mini Grids for Rural Economic Development: Funding the rollout of a Minimum Subsidy Tender for Mini- Grids in 250 sites across six geopolitical zones in the country

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Solar Hybrid Mini Grids

Funding performance- based grants to both mini- grid and stand-alone solar installation companies that support the incremental costs that companies incur when including productive appliances in their

• perations

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Productive Use Appliances and Equipment for Off Grid Communities

Financing the installation of dedicated power systems for 8 federal universities across the country’s six geopolitical zones

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Energizing Education (Phase 3)

Technical Assistance that will provide technical assistance and capacity building to REA and other relevant stakeholders to support national rural electrification scale up activities.

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Technical Assistance

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APPROACH CHALLENGES REALITY OF MINI GRIDS NEED FOR MINI GRIDS

UNIVERSAL ACCESS TO ENERGY BY 2030 MIX OF OFF- GRID AND ON GRID

LEAST COST APPROACH TO ENERGY ACCESS MAJOR INVESTMENT INTO ACCELERATION OF DEPLOYMENT LOW CONNECTION RATES OVERSIZED SYSTEMS POOR DEMAND SURVEYS

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LOW CAPACITY UTILIZATION

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CONTEXT: MINI GRIDS – PERFORMANCE OVERVIEW

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DEMAND STIMULATION THROUGH COMPONENT 2

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POOR RETURN ON INVESTMENT POOR SITE SELECTION

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HOUSEHOLDS PRIORITIZED OVER BUSINESSES

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COMPONENT 2 OVERVIEW

• Subsidy to Energy

Access Companies

How?

• Increase Productive Use of Energy in
• ff-grid communities by facilitating

access to energy efficient Productive Use Appliances & Equipment.

What?

• Increase energy demand in rural

communities

• Increase efficiency of businesses
• Increase income generation &

disposable income

• Increase viability of Mini Grid for

developer.

• Rural economic development

Why?

• AfDB
• REA
• Mini-Grid Developers
• Financiers
• Facilitators
• Appliance Suppliers
• End-Users

Stakeholders Involved?

• Pilot
• Phase 1: Existing

Mini Grids

• Phase 2: NEP Mini

Grids

Sequence?

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OBJECTIVES

STIMULATE DEMAND for energy by INCREASING productive use of energy. ENCOURAGE Productive Use in Developer’s Strategy ACTIVATE APPLIANCE MARKET

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APPLIANCES

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Grain Mill Water Pumping System Rice Huller Rice Polisher Oil Press Cassava Grater

APPLIANCES

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Mobile Phone Charging Station (Deep) Freezer Sewing Machines Barbing Kit Hair Dryer

ü Cleaner Energy Source ü Increased Productivity & Efficiency ü Improved income generation Potential ü Improved Economy ü Reduced Health Hazard

Old Vs New

BARRIERS TO UPTAKE OF PRODUCTIVE USE APPLIANCES IN OFF-GRID COMMUNITIES

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IMPLEMENTATION PLAN

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IMPLEMENTATION

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Pilot Phase

mini grids to be built under the Minimum Subsidy Tender & Performance Based Grants under the Nigeria Electrification Project existing mini grids

7 mini grids to Pilot the implementation (proof of concept)

Initial Roll-out Phase Substantive Roll-out Phase

Increased disposable income of MSME’s Increased demand for energy Increased mini-grid profitability/viability Socio-economic development

During the pilot, the PMU will be testing the following assumptions surrounding the impact of productive use of energy & energy- efficient productive use appliances on mini grids:

OBJECTIVES OF PILOT

PILOT PHASE COMPONENT 2:

Productive Use of Energy efficient appliance and Equipment in off-grid communities

1 Stakeholders Engagement Roundtable Meeting with Stakeholders – Mini grid Developers 2 Data Collection Collection of data by the PMU for existing Mini Grids and Profiling 3 Pilot Site Selection Selection of 7 Pilots sites by the PMU after review

• f collected data

4 Field Study PMU Visitation to selected sites for data verification and baseline survey 5 Data Analysis Analysis of field study data, modelling & subsidy design by Deloitte for pilot 6 Testing Implementation of Pilot by PMU

• Appliances baselining
• Procurement of Equipment

& Training

• Disbursement of Subsidy
• M& E

7 Reporting Report of findings – Successes, Challenges & Opportunities

PILOT PLAN KEY DATES

STAKEHOLDERS ENGAGEMENT DATA COLLECTION PILOT SITE SELECTION FIELD STUDY DATA ANALYSIS TESTING REPORTING

19th May – 29th June 20th – 27th May 27th May – 3rd June 3rd June – 23rd June 29th June – 31st July 3rd Aug – Feb 2021 Feb – March 2021

Pilot Indicators / Targets

Socio- economic development

• Youth trained on productive use of

energy & modern technology

• More men and women trained on

productive use of energy & modern technology

• No. of New businesses started

Increased mini-grid profitability/ viability

• Increased revenue for Developer
• More financiers willing to fund

purchase of appliances

Increased demand for energy

• More meters installed in

community.

• Increased capacity utilisation

Increased disposable income of MSME’s

• Increased productive use

appliances

• Increased income for MSME’s

using productive use appliances

• More MSME’s with mechanised

processes.

• More MSME’s with retrofitted

appliances

PRODUCTIVE USE IMPACT BY 2023 Energy-efficient productive use appliances

24,500

….of businesses headed by women

20%

Number of people with improved access to energy services from productive use systems

1,050,000

Total Value of results-based financing channeled to private sector providers of Productive Use Appliances and Equipment

$20,000,000

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HOW DO YOU GET INVOLVED?

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WEDNESDAY 20TH MAY 2020 REA WILL SEND GOOGLE FORMS SURVEY AVAILABLE ON WEBSITE ABOUT YOUR MINI GRID ABOUT YOUR COMMUNITY FUTURE PLANS DEADLINE ON TUESDAY 3RD JUNE 2020 APPLICATION EVALUATION 7 SITES DECIDED