SCALING UP RENEWABLE ENERGY PROGRAM
MORE THAN 1.2 BILLION PEOPLE WORLDWIDE LIVE WITHOUT ELECTRICITY, AND 2.7 BILLION PEOPLE RELY ON TRADITIONAL BIOMASS FOR COOKING AND HEATING. RENEWABLE ENERGY HOLDS THE PROMISE OF INCREASED ENERGY ACCESS AND ECONOMIC GROWTH WHILE REDUCING GREENHOUSE GAS EMISSIONS AND DEPENDENCE ON FOSSIL FUELS.
ESTABLISHED IN 2008, THE $8.3 BILLION CLIMATE INVESTMENT FUNDS (CIF) ADDRESS THESE CHALLENGES BY DELIVERING INVESTMENTS AT SCALE TO EMPOWER CLIMATE-SMART TRANSFORMATION.
SREP COUNTRIES
SREP EXPECTED RESULTS
This global overview shows a major contribution of geothermal projects to the expected electricity production.
76 % of targeted energy access improvement is expected to be derived from on-grid connections. There are three large geothermal on-grid projects in Kenya, Ethiopia, and Armenia now are reporting on results.
ACHIEVED RESULTS
*Our Improved Energy Access Numbers Explained
**Our Electricity Output Numbers Explained
Electricity Output
The only project that is reporting on actual electricity produced is the Self-Supply RE Guarantee Program in Honduras, with 276 MWh produced and 174 tons of CO2 equivalent avoided. It is the first SREP project in operation from October 2015, with an solar PV installed capacity of 0.9 MW (see Box 1).
Improved Energy Access
Two projects are reporting on actual improved energy access: The South Asia Subregional Economic Cooperation Power System Expansion Project in Nepal, benefiting 6,600 people (see Box 2) and the Sustainable Rural Energization Program (ERUS)-Part I & III: Promoting Sustainable Business Models for Clean Cookstoves Dissemination in Honduras, benefiting 795 people (see Box 3). These projects are described in the section for core indicator 2.
Photo: World Bank
Self-supply renewable energy guarantee program
Country: Honduras
Total funding: USD 5.5 million
Annual electricity output target: 45,000 MWh/yr
Achieved results: 276 MWh/yr
Photos: Inversiones Materiales S.A. de C.V
This program is in operation since October 2015, and while still in its early phase, it is the first SREP project that has started to deliver actual results on annual electricity output.
Small-scale self-supply renewable energy systems are widely regarded as low-cost cost opportunities to mitigate climate change, but are “still hard to reach” so risk mitigation and technical cooperation resources are needed to support first movers.
The program aims to provide risk-sharing instruments (first-loss guarantees mainly, and co-financing resources in certain cases) for loans from the IDB Group and/or other financial institutions, improving the credit profile of the projects and allowing their implementation through access to appropriate finance.
The IDB Group expects to support approximately USD 40 million of investment in self-supply renewable energy projects. These will help
establish local engineering capacity, catalyze the development of supply chains for equipment procurement, and demonstrate the market potential (biogas, small-scale biomass and solar PV) to local financial institutions.
It may also support new business models such as third-party finance of projects within companies’ facilities. The program will directly support at least 10 companies to supply their own renewable energy.
Core Indicator 2
Photo: ESMAP
South Asia Subregional Economic Cooperation Power System Expansion Project
Country: Nepal
Total funding: USD 11.8 million
Annual electricity output target: 143,350 MWh/yr
Achieved results: 6,600 MWh/yr
Photo: ADB
The project will scale up electricity access using renewable energy-based mini-grids systems, and ensure sustainable operations through capacity development. The project is providing access to electricity and facilitating productive end uses of energy at the “bottom of the pyramid” in rural locations, which are well beyond the “last mile” of the grid.
About 1,500 households, or 6,600 people, are already benefiting from installation of lighting and mobile radio charging system, displacing diesel and gasoline use in generator sets and kerosene for lighting.
Two packages have been awarded for lighting and mobile/radio charging
systems (USD 0.09 million) and wind mast (USD 0.037million). Draft bidding documents for one sample mini hydro sub project and one solar/wind hybrid subproject are being finalized.
Sustainable Rural Energization Program (ERUS)-Part I & III—Promoting Sustainable Business Models for Clean Cookstoves
Country: Honduras
Total funding: USD 2.95 million
Annual electricity output target: 375,000 MWh/yr
Achieved results: 795 MWh/yr
Photo: Fundación VIDA/Profogones
The program will benefit rural communities, providing high-efficiency, wood burning cook stoves for 70,000 households, which will reduce consumption and cost of firewood for project beneficiaries by 60 percent, and improve living standards.
The first cook stoves were delivered on December 18, 2015, so figures are still low in the reporting period.
In addition to convenience and reduced wood consumption, the cook stoves will provide health benefits, particularly for women and children who are presently exposed to harmful smoke and gases produced by inefficient burning of firewood in traditional stoves. Women and children will also spend less time collecting and processing firewood, which will increase opportunities to work, attend school, or participate more actively in community affairs.
The program will generate experience in providing models for mass distribution of improved stoves that will be replicable in the other Central American countries.
Geothermal projects
Photos: AfDB
In Kenya, the Menengai Geothermal project aims to meet Kenya’s rapidly increasing demand for power by developing the Menengai steam field for 400 MW power. However, a recent feasibility study concluded that the actual well potential of the site for sustainable production is about of 150 MW gross for 25 years at a total mass extraction flow rate of 1,180 tons/h.
Thirty-two wells have been drilled and 54 people have been trained on drilling technologies, geoscience, donor procurement, and finance. The Government of Kenya via is planning first-stage development of 100 MW power generation by end 2016. Given the overall progress of the project, this objective is expected to be achieved.
In Ethiopia, two geothermal wells have been drilled and tested under the Geothermal Sector Development Project. The preparation of Aluto site is ongoing, with the construction of storage warehouses, a water reservoir, and access roads. The project will confirm geothermal capacity for power generation, but the construction of the power plant is not within thescope of this project.
Strengthening the Enabling Environment
There are five MDB approved projects, whose primary objective is to strengthen the enabling environment for investments in clean energy and energy access. These projects will contribute indirectly to the achievement of the two core indicators.
Ethiopia: Geothermal Sector Strategy and Regulations
- The government of Ethiopia moved ahead with the design of a new public sector institution that will lead the development of the sector and has also proceeded with the drafting of the primary legislation (law) that will provide the high-level framework for the development of the sector. These developments indicate the full endorsement of the geothermal strategy developed by IFC in the first phase of the project and that the government is fully committed.
- The second phase of the project (i.e., the implementation of the activities that were outlined during the development of the strategy, in phase 1) was started in earnest with the finalization of the selection of consultants to support this work and the kick-off workshop taking place in December 2015. The key individuals were present, including representatives from the Ministry of Water, Industry and Energy (MoWIE) and Ethiopian Electric Power (EEP). The kick-off workshop was very useful in providing an overview of the key issues to be addressed by the regulations and their relative priorities, and to provide additional feedback to the government regarding the geothermal proclamation/law.
Lighting Ethiopia
- Sale of quality assured solar products in this reporting period was 416,782 units. This represents an increase on the previous reporting period but, given expected fluctuations in the market, this increase should not be viewed as a reliable trend.
- The project continues to focus on market spoilage and regulatory issues. During this period, a mandatory quality standard (based on the Lighting Global Quality Framework) for off-grid solar products was developed and adopted. This standard is a vital foundation for all other regulatory measures.
- Beyond the major market barriers, the program is undertaking a number of activities to support the efforts of private sector players in the market more broadly. The solar products distribution partners are involved in the development of the consumer education campaign and will be fully engaged in the implementation of the campaign. Trained technicians are being used to train retailers that can then be linked to the solar product companies or their local partners.
Tanzania: Mini-grids Project
- The project was officially launched in October 2015. The launch event was a success with more than 70 participants from the public and private sectors attending.
- Preliminary steps were initiated for the technical standards and specifications for mini-grids in Tanzania. The standards will facilitate mini-grid project development that meets supply quality and reliability standards. This is necessary to create the business environment that will allowing for the necessary conditions for the private sector to develop and implement mini-grid projects.
- An advisory working group composed of key points of contact in government institutions was created. The main purpose of the advisory group is to facilitate decision-making among key stakeholders, avoid the duplication of efforts and support the quick preparation and adoption of the technical standards and specifications for mini-grids in Tanzania, as well as the development of the information hub.
- A mini-grid developers and installers database was developed that includes more than 80 developers and 60 installers and suppliers already active in Tanzania. IFC has also identified mini-grid projects and developers operating in the broader East Africa region that will be used for the benchmarking work that is expected to take place in the next reporting period. In addition, the team has started to identify investors/financiers interested (or potentially interested) in the mini-grid space in Tanzania.
Honduras: Strengthening the Renewable Energy Policy and Regulatory Framework Program (FOMPIER), Part I
- The technical cooperation is currently being redesigned, taking into account the changes in the legal system due to the implementation of the Power Sector Framework Law. The program will support the preparation and implementation of new regulation in accordance with the new law. It will also support the government in its effort to continue increasing the share of renewable energy considering the wind and solar capacity that has already been achieved.
ABOUT THE SREP
The $839 million Scaling Up Renewable Energy Program (SREP), a funding window of the CIF, is empowering transformation in developing countries by demonstrating the economic, social and environmental viability of renewable energy.
Channeled through five multilateral development banks (MDBs), SREP financing supports scaled-up deployment of renewable energy solutions to increase energy access and economic opportunities.
To date, $264 million is approved and under implementation for 23 projects and programs, expecting $1.9 billion in co-financing from other sources. The SREP employs a programmatic approach that builds of national policies and existing energy initiatives.