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UNIDO’s ENERGY AND CLIMATE CHANGE PROGRAMME OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT: REGULATIONS, POLICIES & FINANCING Need for Targeted Support. What policies? What incentives? 1 st November 2012, Accra Dr. Pradeep Monga, Director Energy and Climate Change Branch UNIDO

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Page 1: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

UNIDO’s ENERGY AND CLIMATE CHANGE PROGRAMME

OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT:

REGULATIONS, POLICIES & FINANCING

Need for Targeted Support. What policies? What incentives?

1st November 2012, Accra

Dr. Pradeep Monga, Director

Energy and Climate Change Branch

UNIDO

Page 2: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

CONTENTS

UNIDO’S Mandate

Off-Grid RE Deployment

Need for Targeted Policies and Incentives

Relevant UNIDO projects

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Page 3: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

STRATEGIC FOCUS

-Enhance access to modern energy services

for productive uses

-Increase the competitiveness of industries by

reducing their dependence on fossil fuels

-Reduce emissions of industries by promoting

energy efficiency and renewable energy

UNIDO’s Energy and Climate Change Programme

Providing Integrated Energy Solutions and Services

for promoting the Sustainable Industrial Agenda: GREEN INDUSTRY

Page 4: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

THEMATIC FOCUS

Industrial Energy Efficiency (Energy Management

Standards, ISO 50001 and Systems Optimization)

Renewable Energy for Productive Uses (mini-grids,

0ff-grid applications and industrial use

Low Carbon, Low Emissions Technologies (Hydrogen and CCS)

UNIDO’s Energy and Climate Change Programme

Page 5: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

UNIDO’s Renewable and Rural Energy Programme

STRATEGIC FOCUS

- Scale up Renewable Energy Technologies and Markets – solar, small hydropower, wind, biomass and geothermal - Promote Renewable Energy in Off-grid for Access - Mini-grids for Productive Uses - Promote Renewable Energy for Industrial Applications (Heating and Cooling)

Page 6: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

OFF GRID RE DEPLOYMENT – MINI GRIDS

Building Blocks

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TARGETED

FOCUSED

INTEGRATED

PUBLIC

PRIVATE

RISKS

OPERATIONAL

MAINTENANCE

CAPACITIES

INCOME GENEARATION

ACTIVITIES

POLICIES INVESTMENTS

INSTITUTIONAL

FRAMEWORK

PRODUCTIVE USES

Results

and

Impacts

Page 7: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

Module 1

TARGTED POLICIES FOR OFF-GRID RE DEPLOYMENT

ENSURING A LEVEL PLAYING FIELD

MITIGATING INVESTMENT RISKS

PROMOTING INNOVATIONS

BUSINESS MODEL APPROACH

LINKING TO PRODUCTIVE USES

PRICING / TARIFF SIGNALS

Page 8: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

Module 1

RIGHT INCENTIVES – FEW EXAMPLES

GRANTS (to mitigate risks)

TAX INCENTIVES

SMART SUBSIDIES

REVOLVING FUNDS

NON GRANTS INSTRUMENTS

Page 9: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

Case Study: Renewable Energy based electricity generation for isolated mini-grids in Zambia

The project aims at promoting Off-Grid RE Deployment:

Biomass gasifier power plant

for 500 kW of electricity generation

Small hydropower station to generate 1 MW of electricity

Solar energy mini-grid with an output of 36 kW

Location of Minigrid

Sites in Zambia

Total project budget:

US$ 10 MILLION

Page 10: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

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Smart Micro Grid linking to Productive Uses in

Kenya

Page 11: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

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Design and Structure of Smart Micro Grid

Business Model

Micro Smart Grids

25 kW +

Energy Services

10 kW

Productive Use

15 kW

ICT

Services Recharge

mobiles,

LED lamps,

Car

batteries

Community

services -medicine refrigerated

storage

-TV and entertainment

Primary processing of

agricultural products

Secondary processing of

agricultural products into food

Other rural

productive uses

Operation and

maintenance

Management

structure

Page 12: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

UNIDO’s Off Grid Renewable Energy Projects in West Africa

7 Off-grid renewable energy projects (under

implementation)

RE Mini-grids linking to Productive Uses

Countries – Sierra Leone, Liberia, Nigeria, The

Gambia, Guinea, Chad, Cote d’Ivoire

Targeted RE Policies and Incentives (under

design / strengthening)

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Page 13: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

UNIDO’s Off Grid Renewable Energy Projects in West Africa- Regional RE Policy

Key Features

Share of renewable energy (incl. large hydro) in the total electricity

to be increased from 32% in 2010 to 35% in 2020 and 48% by 2030.

Share of new renewable energy such as wind, solar, small scale

hydro and bioelectricity (excl. large hydro) from non existence in

2010 will increase to around 10% in 2020 and 19% by 2030. These

targets translate into an additional 2.425 MW renewable electricity

capacity by 2020 and 7.606 MW by 2030.

Around 75% of the rural population to be served through grid

extensions and around 25% by renewable energy powered by mini-

grids and stand-alone hybrid RE systems by 2030.

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Page 14: OFF-GRID RENEWABLE ENERGY SYSTEM DEPLOYMENT-  REGULATIONS, POLICIES & FINANCING  Need for Targeted Support. What policies? What  incentives?.pdf

THANK YOU!

Pradeep Monga

Director

Energy and Climate Change

[email protected]

www.unido.org/energy