the Market for Solar Home Systems Outline of Proposed Approach and - - PowerPoint PPT Presentation

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the Market for Solar Home Systems Outline of Proposed Approach and - - PowerPoint PPT Presentation

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Public Disclosure Authorized Sindh Solar Energy Project Achieving Rural Electrification by Expanding the Market for Solar Home Systems Outline of Proposed Approach and Public Disclosure Authorized Role of the Private Sector Consultation

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Sindh Solar Energy Project

Achieving Rural Electrification by Expanding the Market for Solar Home Systems

Outline of Proposed Approach and Role of the Private Sector Consultation Workshop on Component 3 of the Sindh Solar Energy Project

Mehfooz Qazi, Director Alternate Energy, Sindh Energy Department, Government of Sindh Oliver Knight, Senior Energy Specialist, World Bank

3rd October 2018 Consultation Workshop on Component 3 1

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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Sindh Solar Energy Project

Presentation Outline

Project Background & Objectives Project Time-line & Key Elements of Component 3 SED as a Market Developer Target Districts Proposed Product Range Supplier & Product Eligibility Criteria Targeting of Female Headed Households Program Processes Issues for Discussion

3rd October 2018 Consultation Workshop on Component 3 2

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Sindh Solar Energy Project

Sindh Solar Energy Project (SSEP) is a new initiative of the Government of Sindh, financed by a $100m concessional loan from the World Bank that was approved by the WB Board in June 2018. It has four components:

  • 1. Development of solar parks to facilitate at least 400 MW of utility-

scale solar through competitive bidding [$40m];

  • 2. Installation of 20 MW of distributed solar on and around public

buildings in Karachi and Hyderabad [$25m];

  • 3. Scaling up the market for solar home systems to provide electricity

access to at least 200,000 households in Sindh [$30m];

  • 4. Technical assistance and capacity building in support of the above,

including two comprehensive household energy surveys [$5m].

Project Outline

3rd October 2018 Consultation Workshop on Component 3 3

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Sindh Solar Energy Project

  • According to census 2017 figures released by Pakistan Bureau of

Statistics division, the total number of households in Sindh was 8,585,610.

  • NEPRA in 2017, reported a total number of domestic connections of

3,400,260 in Sindh. This translates into an electricity access rate of 39.6% for Sindh, with roughly 5,185,350 households without electricity connections.

  • Acknowledging this problem, Government of Sindh has initiated a SHS

for households program in Sindh Province through clean solar energy

  • solutions. World Bank has agreed to support Government of Sindh in

this regard.

Energy Access Challenge in Sindh

3rd October 2018 Consultation Workshop on Component 3 4

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Sindh Solar Energy Project

Component 3 of the project, targeting off-grid Solar Home Systems (SHSs), aims to:

Support deployment of 200,000 Solar Home Systems by private sector suppliers in prioritized areas with low access to electricity over a period

  • f five years (2018-2023)

Objective of Component 3

3rd October 2018 Consultation Workshop on Component 3 5

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Sindh Solar Energy Project

  • Market-based approach to achieve scale and sustainability
  • Consumer-driven to match income and needs
  • Public funding used to bridge affordability gaps and reach

more remote areas

  • Stringent quality standards to avoid market spoilage
  • Results tracking and penalties for non-compliance or fraud

Principles of Component 3

3rd October 2018 Consultation Workshop on Component 3 6

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Sindh Solar Energy Project

Project Timeline

Year 1 Years 2-5

3rd October 2018 Consultation Workshop on Component 3 7

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Sindh Solar Energy Project

1. Partial grant to households: A grant amount ranging between 20% - 40% of SHS cost will be provided to each household that purchases a SHS installed in the target districts. 2. Consumer awareness campaign: A firm will be hired to undertake marketing activities directed at the consumer, to build awareness and facilitate the purchase of SHS by consumers. This will complement the marketing activities of private sector suppliers. 3. Monitoring and evaluation: A separate firm will be hired to implement a robust M&E program covering product testing, installation verification, household complaints hotline, supplier compliance, and results monitoring.

Key Elements of Component 3

3rd October 2018 Consultation Workshop on Component 3 8

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Sindh Solar Energy Project

SED As a Market Developer

3rd October 2018 Consultation Workshop on Component 3 9

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Sindh Solar Energy Project

  • New IFC Lighting Pakistan study

used high-resolution nighttime satellite imagery to identify low energy access communities across Sindh and Punjab Provinces in Pakistan

  • Initial target districts have been

identified based on above GIS Study and Poverty Maps

  • SSEP includes funding for two

household energy surveys using the Multi-Tier Framework

  • Survey results will further

support targeting

Energy Access Assessment Methods

3rd October 2018 Consultation Workshop on Component 3 10

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Sindh Solar Energy Project

  • 1. Badin
  • 2. Dadu
  • 3. Ghotki
  • 4. Jacobabad
  • 5. Kashmore
  • 6. Khairpur
  • 7. Qambar Shahdadkot
  • 8. Sanghar
  • 9. Shikarpur
  • 10. Tharparkar
  • 11. Thatta /Sajawal
  • 12. Umerkot

Possible Target Districts

3rd October 2018 Consultation Workshop on Component 3 11

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Sindh Solar Energy Project

The project aims to provide at least a basic SHS “starter system” to each household, defined in terms of the services provided, as follows:

  • 1x fan
  • 1x mobile charging
  • 3x lights

The grant amount per household will be determined on the basis of this starter system, and will be fixed. Larger SHSs with additional features and functionality will also be eligible, but households will get the same grant amount.

Proposed Product Range

3rd October 2018 Consultation Workshop on Component 3 12

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Sindh Solar Energy Project

1. Product standards*: Stringent product standards shall be enforced based on IEC testing procedures. The project aims to support product testing within Pakistan through an accredited lab. 2. Supplier experience: Experience in working with solar PV and/or SHS technology for at least three years in Pakistan or internationally, with an emphasis on experience in the off-grid space. 3. Supplier strength: Proof of good financial standing of the company, and ability to provide and support SHS installations in rural areas of Sindh. *Further details on proposed quality standards in handout provided.

3rd October 2018 Consultation Workshop on Component 3 13

Product and Supplier Eligibility Criteria

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Sindh Solar Energy Project

The project has committed to giving specific priority to female-headed households (FHHs), with an initial target that at least 2% of the total households provided with SHS will be FHHs. This will be achieved through the following supplemental measures: 1. Specific questions on gender in the household energy survey to better understand the issues [Component 4] 2. Targeting of FHHs in the consumer awareness campaign 3. Training available for suppliers and installations crews on the specific energy needs of women and FHHs [Component 4] 4. An increase in the grant amount for FHHs 5. Additional M&E actions to support FHHs

3rd October 2018 Consultation Workshop on Component 3 14

Targeting of Female-Headed Households

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Sindh Solar Energy Project

3rd October 2018 Consultation Workshop on Component 3 15

Supplier Pre-Identification Process Consumer Outreach and Sales Process

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Sindh Solar Energy Project

3rd October 2018 Consultation Workshop on Component 3 16

Installation and Subsidy Payment Process Testing and Verification Process

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Sindh Solar Energy Project

  • District targeting
  • Product and supplier eligibility criteria
  • Method for providing grant to households (e-voucher?)
  • Reaching female-headed households
  • Consumer awareness campaign
  • Ensuring robust M&E and supplier compliance (including rewards and

penalties)

  • Market uptake of SHS

Issues for Discussion

3rd October 2018 Consultation Workshop on Component 3 17

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Sindh Solar Energy Project

Thank You

3rd October 2018 Consultation Workshop on Component 3 18

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Sindh Solar Energy Project

  • Uses U.S. Air Force

Defense Meteorological Satellite Program’s Operational Linescan System (DMSP- OLS) and VIIRS satellites

  • Link between

nighttime light

  • utput and energy

access

  • IFC Lighting Pakistan

team conducted study using high- resolution nighttime satellite imagery to identify low energy access communities

Geospatial Mapping of Low Energy Access Communities in Sindh

3rd October 2018 Consultation Workshop on Component 3 19

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Sindh Solar Energy Project

Feedback Session

3rd October 2018 Consultation Workshop on Component 3 20

Solution Provider Identification Table Numbers 1, 2 & 9

  • Criteria for Supplier Eligibility
  • Pricing Range

Market Uptake of SHS Table Numbers 3, 4 & 10

  • Sustainable Financing

Mechanisms/MFIs

  • Expected Uptake of SHS

Consumer Outreach Table Numbers 5 & 6

  • Awareness and Operating of

Grant System

  • Reaching Female Headed

Households

Target Districts & M&E Process Table Numbers 7 & 8

  • Target Districts
  • M&E Process