NIGERIA ELECTRIFICATION PROJECT- AFRICAN DEVELOPMENT BANK COMPONENT 2 MINI GRID DEVELOPERS VIRTUAL ROUNDTABLE 19 th MAY 2020 1
NEP/AfDB Components & Objectives 02 03 01 04 Funding performance- Financing the installation of Solar Hybrid Mini Grids for based grants to both mini- dedicated power systems Technical Assistance that Rural Economic grid and stand-alone solar for 8 federal universities will provide technical Development: Funding the installation companies that across the country’s six assistance and capacity rollout of a Minimum support the incremental geopolitical zones building to REA and other Subsidy Tender for Mini- costs that companies incur relevant stakeholders to Grids in 250 sites across six when including productive support national rural geopolitical zones in the appliances in their electrification scale up country operations activities. Productive Use Appliances and Solar Hybrid Mini Energizing Technical Assistance Grids Equipment for Off Education (Phase 3) Grid Communities your logo
CONTEXT: MINI GRIDS – PERFORMANCE OVERVIEW 2 4 1 8 NEED FOR 3 LEAST COST MAJOR INVESTMENT UNIVERSAL ACCESS MIX OF OFF- MINI GRIDS APPROACH TO INTO ACCELERATION OF TO ENERGY BY GRID AND ON ENERGY DEPLOYMENT 2030 GRID ACCESS 5 6 5 3 LOW CAPACITY LOW POOR RETURN ON REALITY OF UTILIZATION CONNECTION INVESTMENT MINI GRIDS RATES 17 17 7 7 8 6 9 9 POOR SITE POOR DEMAND OVERSIZED HOUSEHOLDS SELECTION SURVEYS SYSTEMS PRIORITIZED OVER CHALLENGES BUSINESSES 7 9 DEMAND STIMULATION THROUGH COMPONENT 2 APPROACH 3
COMPONENT 2 OVERVIEW What? How? Increase Productive Use of Energy in • Subsidy to Energy • off-grid communities by facilitating Access access to energy efficient Productive Companies Use Appliances & Equipment. Why? Increase energy demand in rural • communities Increase efficiency of businesses • Increase income generation & • disposable income Sequence? Stakeholders Involved? Increase viability of Mini Grid for • developer. Rural economic development • Pilot AfDB • • Phase 1: Existing REA • • Mini Grids Mini-Grid Developers • Phase 2: NEP Mini Financiers • • Grids Facilitators • Appliance Suppliers • End-Users • 4
OBJECTIVES STIMULATE DEMAND for energy by INCREASING productive use of energy. ACTIVATE APPLIANCE MARKET ENCOURAGE Productive Use in Developer’s Strategy 6
APPLIANCES Grain Mill Water Pumping System Rice Huller Rice Polisher Oil Press Cassava Grater 7
APPLIANCES Mobile Phone Charging Station (Deep) Freezer Sewing Machines Barbing Kit Hair Dryer 8
Old Vs New ü Cleaner Energy Source ü Increased Productivity & Efficiency ü Improved income generation Potential ü Improved Economy ü Reduced Health Hazard
BARRIERS TO UPTAKE OF PRODUCTIVE USE APPLIANCES IN OFF-GRID COMMUNITIES 10
IMPLEMENTATION PLAN 11
IMPLEMENTATION Initial Substantive Pilot Phase Roll-out Phase Roll-out Phase 7 mini grids to Pilot the existing mini grids mini grids to be built under the implementation (proof of concept ) Minimum Subsidy Tender & Performance Based Grants under the Nigeria Electrification Project 12
OBJECTIVES OF PILOT 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: Increased disposable income of MSME’s Increased demand for energy Increased mini-grid profitability/viability Socio-economic development
PILOT PLAN KEY DATES STAKEHOLDERS Reporting ENGAGEMENT Report of findings – 19 th May – 29 th June Successes, Challenges & Opportunities Stakeholders Engagement DATA COLLECTION Testing Roundtable Meeting with 20 th – 27 th May Stakeholders – Mini grid Implementation of Pilot by PMU 7 Developers • Appliances baselining PILOT SITE SELECTION • Procurement of Equipment 1 & Training 6 27th May – 3 rd June • Disbursement of Subsidy PILOT PHASE • M& E FIELD STUDY COMPONENT 2: 3rd June – 23 rd June Productive Use of Energy Data Analysis 5 Data Collection 2 efficient appliance and DATA ANALYSIS Equipment in off-grid Analysis of field study Collection of data by the communities data, modelling & subsidy PMU for existing Mini 29th June – 31 st July design by Deloitte for pilot Grids and Profiling TESTING 3 4 3 rd Aug – Feb 2021 Pilot Site Selection Field Study REPORTING Selection of 7 Pilots sites PMU Visitation to selected by the PMU after review Feb – March 2021 sites for data verification of collected data and baseline survey
Pilot Indicators / Targets Increased Increased Increased Socio- disposable mini-grid demand for economic income of profitability/ energy development MSME’s viability • Increased productive use • More meters installed in • Youth trained on productive use of appliances community. energy & modern technology • Increased revenue for Developer • Increased income for MSME’s using productive use appliances • Increased capacity utilisation • More men and women trained on • More financiers willing to fund productive use of energy & purchase of appliances modern technology • More MSME’s with mechanised processes. • No. of New businesses started • More MSME’s with retrofitted appliances
PRODUCTIVE USE IMPACT BY 2023 20% ….of businesses Energy-efficient 24,500 headed by women productive use appliances Number of people 1,050,000 with improved access to energy services from productive use systems Total Value of results-based $20,000,000 financing channeled to private sector providers of Productive Use Appliances and Equipment 16
HOW DO YOU GET INVOLVED? REA WILL SEND WEDNESDAY 20 TH AVAILABLE ON GOOGLE FORMS MAY 2020 WEBSITE SURVEY ABOUT YOUR ABOUT YOUR FUTURE PLANS MINI GRID COMMUNITY DEADLINE ON APPLICATION TUESDAY 3 RD 7 SITES DECIDED EVALUATION JUNE 2020 17
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