off-grid taskforce: summary of 2 meeting
TRANSCRIPT
2
ACRONYMS (1/2)
Ministry of Local Government
Ministry of Finance
Ministry of Agriculture
Ministry of National Development and Planning
African Development Bank
Africa Enterprise Challenge Fund
Cooperating Partner
Deparment of Energy
Energy Regulatory Board
Ministry of Labour and Social Security
Beyond the Grid Fund for Zambia
Electricity Service Access Project
European Union
Increased Access to Electricity and Renewable Energy Production
International Finance Corporation
Ministry of Community Development and Social Services
Ministry of Commerce Trade and Industry
Ministry of Foreign Affairs
Ministry of Energy
Department for International Development
Definition
MLG
MoF
MoA
MNDP
AfDB
AECF
CP
DoE
ERB
MLSS
BGFZ
ESAP
EU
IAEREP
IFC
MCDSS
MCTI
MoFA
MoE
DfID
Term
3
ACRONYMS (2/2)
United States Agency for International Development
Zambia Environmental Management Agency
Zambian Bureau of Standards
World Bank Group
Ministry of Information, Broadcasting Services
Office of the Vice President
Rural Electrification Agency
Renewable Energy and Energy Efficiency Partnership
Rural Finance Expansion Programme
Value-added Tax
Renewable Energy
Southern Africa Energy Program
Solar Home System
Solar Industry Association of Zambia
Swedish International Development Cooperation Agency
The Technical Education, Vocational and Entrepreneurship Training Authority
Terms of Reference
Zambia Revenue Authority
Zambia Renewable Energy Association
Renewable Energy Cooperation Program
Definition
USAID
ZEMA
ZABS
WB
MoIBS
OVP
REA
REEEP
RUFEP
VAT
RE
SAEP
SHS
SIAZ
SIDA
TEVETA
ToR
ZRA
ZARENA
RECP
Term
4
CONTENTS
▪ Structure of the taskforce
▪ Support to the taskforce
▪ Taskforce meeting summary
▪ Next steps for USAID SAEP
▪ Appendix A: Co-operating partner mapping
▪ Appendix B: Interviews and reports used to date
5
THE OFF-GRID TASKFORCE HAS ADOPTED
THREE PRIMARY OBJECTIVES
Taskforce objectives1:
1 Formally adapted on December 22nd 2017 during Taskforce Formation (meeting detail below)
SOURCE: Content presented to private-sector stakeholders by REEEP (March 23rd)
▪ To provide a focus for coordination and oversight of market related
initiatives and activities designed to raise the profile and increase the
potential of the Off-grid sector in Zambia and deliver increased energy
access, particularly in rural areas, in line with Government objectives
1
▪ To provide a hub for the exchange and dissemination of experience,
know-how and information sourced from programme implementation,
regulatory or policy developments
2
▪ To provide a forum in which participants from Government, other agencies,
Cooperating Partners, private sector companies and civil society can
jointly interpret data and information, identify challenges in the sector and
agree on follow-up actions to resolve them
3
CONTENT FROM REEEP
STRUCTURE OF THE TASKFORCE
6
REPORTING DIRECTLY TO GOVERNMENT STAKEHOLDERS
ENABLES THE TASKFORCE TO IMPLEMENT ITS PRIORITIES
▪ Chair: Vice President + Ministry of Energy, Ministry
of National Development and Planning, MOFA,
MCTI, MCDSS
▪ Chair: MOE + Office of the Vice President, MOF,
MNDP, MOFA, MCTI, MCDSS
▪ Permanent / Core Members
▪ Ad-hoc Members
▪ Dept. of Energy and Dept. of Planning & Information
▪ Agents Sponsored by cps: REEEP (2018) supported
by other consultants and CPs/CP Energy Group
Inter-
Ministerial
PSS Steering
Committee
Off-Grid
Taskforce
Secretariat
Rep
ort
ing
an
d
info
rmati
on
flo
wIm
ple
men
tin
g u
nit
CONTENT FROM REEEP
Taskforce structure:
SOURCE: Content presented to private-sector stakeholders by REEEP (March 23rd)
STRUCTURE OF THE TASKFORCE
7
TASKFORCE MEMBERSHIP ENSURES REPRESENTATION
ACROSS KEY PRIVATE AND PUBLIC-SECTOR STAKEHOLDERS AND
CIVIL SOCIETY
Taskforce members
SOURCE: Content presented to private-sector stakeholders by REEEP (March 23rd)
Government members
▪ Chair: Permanent Secretary of the Ministry of Energy and 6 Permanent Members
▪ DOE, Office of the Vice President, REA, ERB, MoE, MNDP
Other ad-hoc members (e.g. civil society)
Ad-hoc government members as required
▪ MLG, MCDSS, ZABS, ZEMA, MoA, Others
Private-sector
▪ 1 representative from each of the following groups: ZARENA, SIAZ, bioenergy,
financing and mini-grids
Cooperating partners
▪ DfID, SIDA, EU, USAID, World Bank Group, AfDB
CONTENT FROM REEEP
STRUCTURE OF THE TASKFORCE
8
CONTENTS
▪ Structure of the taskforce
▪ Support to the taskforce
▪ Taskforce meeting summary
▪ Next steps for USAID SAEP
▪ Appendix A: Co-operating partner mapping
▪ Appendix B: Interviews and reports used to date
9
AHEAD OF THIS TASKFORCE MEETING, SAEP HAS SUPPORTED THE
SECRETARIAT IN PRIVATE AND PUBLIC SECTOR WORKSHOPS
SOURCE: Post-workshop wrap-up documents, interviews,
March 22nd,
2018
First Taskforce
meeting
Dec 22nd 2017
Formation of
Taskforce
March 23rd,
2018
Private-sector
workshop
April 10th, 2018
Public-sector
orientation
April 10th-17th, 2018
CP coordination
correspondence
April 19th, 2018
Taskforce kickoff
Key
outcomes/
decisions
▪ Terms of
Reference
reviewed, with
changes
recommended
(particularly
around core
membership)
▪ OVP took
decision that
Taskforce would
report to a
Committee of
Ministers chaired
by the Vice
President
▪ OVP letter
signed to
confirm above
▪ SAEP presented
assessment of
SHS and mini-grid
private sector
opportunities and
challenges2
▪ Representatives
for each of the 5
private sector
nominated1
▪ Private-sector
voted on top
taskforce priorities
▪ IFC and SAEP
presented on off-
grid market3
▪ Public sector
participants
mapped their
organizations’
potential support
role(s) against
top off-grid
priorities
▪ CPs aligned on
how they can
each support
different priority
areas
▪ ToR approved
▪ 4 short-term
priority items
determined
▪ List of medium-
term priority
items proposed
Session
objectives
▪ Review and
adopt of Terms
of Reference
▪ Define taskforce
structure and
reporting
mechanism
▪ Align on top
Taskforce
priorities
▪ Decide on how
private-sector
players will be
represented on the
taskforce
▪ Orient
participants on
off-grid market
and government’s
role in supporting
its expansion
▪ Syndicate top
priorities defined
by the private
sector
▪ Enable
cooperating
partners to
coordinate how
they will support
taskforce
priorities
▪ Adopt the Terms
of Reference
▪ Approve minutes
of prior meeting
▪ Determine short-
and medium-term
priorities with
clear next steps
SAEP attended session SAEP did not attend session, but provided inputs SAEP did not attend session, and provided no inputs
1 SIAZ, ZARENA, mini-grids, bioenergy, financing
2 Private sector workshop deliverable submitted with presentation material and key outcomes
3 Capability building and orientation session deliverable submitted with presentation material and key outcomes
SUPPORT TO THE TASKFORCE
10
Policy
framework
Consumer
protection and
awareness and
information
Access to
finance
Technical and
operational
support
WORKING OFF DFID’S ENERGY AFRICA COMPACT ACTIONS, SAEP
DEVELOPED A LIST OF 13 PROPOSED PRIORITY ACTIONS FOR
INTERVENTION BY THE TASKFORCE
SOURCE: DFID Energy Compact, SAEP analysis, press searches, CP project webpages
1 As identified by private-sector stakeholders on March 23rd Private-sector Workshop | 2 As identified by public-sector stakeholders on April 10th public-sector workshop
3 With SIDA support (USD 8.5 M grant) | 4 Potential support area for Commonwealth Governments | 5 Core emphasis on tech. standards to provide clarity and consistency for MG developers
Proposed off-grid taskforce action DFID Energy Compact action
b Create off-grid electrification taskforce Action 1
Status/progress
to-date
a Subsidize end-users, especially in low-density and low-income areas Proposed
a Conduct economic analysis on job creation and local content strategy Action 1
8 Support formation of industry association Action 6
11 Advance a wider range of financing products Action 8
b Provide direct financial support to SHS and mini-grid providers in the growth
phase (e.g., working capital)
Proposed
3 Streamline the mini-grid licensing procedure Proposed
2 Finalize renewable energy strategy Action 2
6 Provide support on enforcement of quality standards4 Action 4
9 Launch a “Go off-grid” national awareness building campaign Optional
12 Provide site identification tools integrating feasibility factors for SHS and mini-grid Proposed
13 Set-up off-grid specific vocational training programs to create a pool of skilled labor Optional
1 Develop clear targets for off-grid electrification Action 1
4 Establish a clear tariff setting framework for mini-grid developers including
government subsidies
Proposed
7 Develop scheme for quality certification Action 5
5 Develop consistent fiscal measures (e.g. VAT, duties) for the off-grid components Action 3Fiscal
measures
10 Provide regulatory and financial support to off-grid providers in the startup phase
(e.g., equity) to encourage the supply of off-grid solar products
Action 7Early market
entrance
CompleteIn progressNot started
SUPPORT TO THE TASKFORCE
11
SAEP HELPED TO SYNDICATE THESE PRIORITIES WITH KEY OFF-GRID
STAKEHOLDERS AHEAD OF THE APRIL 19TH MEETING
E-mail syndication to cooperating partners
(April 16th to 18th ) Forum
Stakeholders
engaged
Private-sector workshop (March 23rd)
Azuri
Vitalite
Sunny Money
Muhanya Solar Ltd
Fenix International
ID Solar
Onyx International
RUFEP
Kazang
Timbuktu Kafita
Biolife Energy Zambia (BEZ)
Welada Bioenergy Solutions
Emerging Cooking Solutions
Small Hydro Solutions (Zambia) Ltd
Greenheart Energy Group
Sustainable Energy and Environment
Standard Microgrid
Sigora Zambia
ENGIE Power Corner
Airtel
ZARENA
DfID
EU
SIDA
USAID
World Bank/ IFC
Public-sector orientation (April 10th)
Energy Regulatory Board
Ministry of Community Development
and Social Services
Ministry of Energy
Ministry of Finance
Ministry of National Development
Planning
Office of the Vice President
Rural Electrification Authority
Zambia Bureau of Standards
Zambia Environmental Management
Agency
Public-sector orientation (April 10th) Cooperating partners (April 16th to 18th) Private-sector
AfDB
Stakeholder has engaged/ participated in priority development Stakeholder has not engaged
SOURCE: Private-sector Workshop particpation (3/23); Public-sector Orientation participation (4/10); E-mail exchanges with CPs
A B C
SUPPORT TO THE TASKFORCE
12
THE PRIVATE SECTOR PRIORITIZED 4 ACTIONS AS A STARTING
POINT FOR THE TASKFORCE
SOURCE: DFID Energy Compact, SAEP analysis, press searches, CP project webpages
1 As identified by private-sector stakeholders on March 23rd Private-sector Workshop | 2 As identified by public-sector stakeholders on April 10th public-sector workshop
3 With SIDA support (USD 8.5 M grant) | 4 Potential support area for Commonwealth Governments | 5 Core emphasis on tech. standards to provide clarity and consistency for MG developers
Top private-sector priorities1 CompleteIn progressNot started
A
SUPPORT TO THE TASKFORCE
Policy
framework
Consumer
protection and
awareness and
information
Access to
finance
Technical and
operational
support
Proposed off-grid taskforce action DFID Energy Compact action
b Create off-grid electrification taskforce Action 1
Status/progress
to-date
a Subsidize end-users, especially in low-density and low-income areas Proposed
a Conduct economic analysis on job creation and local content strategy Action 1
8 Support formation of industry association Action 6
11 Advance a wider range of financing products Action 8
b Provide direct financial support to SHS and mini-grid providers in the growth
phase (e.g., working capital)
Proposed
3 Streamline the mini-grid licensing procedure Proposed
2 Finalize renewable energy strategy Action 2
6 Provide support on enforcement of quality standards4 Action 4
9 Launch a “Go off-grid” national awareness building campaign Optional
12 Provide site identification tools integrating feasibility factors for SHS and mini-grid Proposed
13 Set-up off-grid specific vocational training programs to create a pool of skilled labor Optional
1 Develop clear targets for off-grid electrification Action 1
4 Establish a clear tariff setting framework for mini-grid developers including
government subsidies
Proposed
7 Develop scheme for quality certification Action 5
5 Develop consistent fiscal measures (e.g. VAT, duties) for the off-grid components Action 3Fiscal
measures
10 Provide regulatory and financial support to off-grid providers in the startup phase
(e.g., equity) to encourage the supply of off-grid solar products
Action 7Early market
entrance
CompleteIn progressNot started
13
DURING THESE INTERACTIONS, SAEP HELPED TO MAP
CO-OPERATING PARTNER SUPPORT AND GOVERNMENT
IMPLEMENTERS AGAINST THE PROPOSED ACTIONS
SOURCE: DFID Energy Compact, SAEP analysis, press searches, CP project webpages
1 As identified by private-sector stakeholders on March 23rd Private-sector Workshop | 2 As identified by public-sector stakeholders on April 10th public-sector workshop
3 With SIDA support (USD 8.5 M grant) | 4 Potential support area for Commonwealth Governments | 5 Core emphasis on tech. standards to provide clarity and consistency for MG developers
Policy
framework
Consumer
protection and
awareness and
information
Access to
finance
Technical and
operational
support
Fiscal
measures
Early market
entrance
ZABS; ERB
Ministry of Energy; MoIBS
Status/
progress
to-date
Optional
DFID Energy
Compact
action
Proposed
Action 1
Action 1
Action 6
Action 7
Proposed
Action 8
Proposed
Action 3
Action 2
Action 4
Proposed
Optional
Action 1
Proposed
Action 5
Proposed off-grid taskforce action
a Subsidize end-users, especially in low-density and low-
income areas
a Conduct economic analysis on job creation and local
content strategy
b Create off-grid electrification taskforce
8 Support formation of industry association
10 Provide regulatory and financial support to off-grid providers
in the startup phase (e.g., equity) to encourage the supply of
off-grid solar products
b Provide direct financial support to SHS and mini-grid
providers in the growth phase (e.g., working capital)
11 Advance a wider range of financing products
3 Streamline the mini-grid licensing procedure
5 Develop consistent fiscal measures (e.g. VAT, duties) for the
off-grid components
2 Finalize renewable energy strategy
Provide support on enforcement of quality standards46
9 Launch a “Go off-grid” national awareness building campaign
Provide site identification tools integrating feasibility factors
for SHS and mini-grid12
13 Set-up off-grid specific vocational training programs to create
a pool of skilled labor
1 Develop clear targets for off-grid electrification
4 Establish a clear tariff setting framework for mini-grid
developers including government subsidies
7 Develop scheme for quality certification
Public-sector organizations
that should implement2
Ministry of Energy
Office of Vice President
MLSS; Ministry of Commerce
MoF; Ministry of Energy
MoF; Ministry of Energy
ERB; ZEMA
ZRA; MoF; Ministry of Energy
Ministry of Energy
MoF; Ministry of Energy
Ministry of Higher Education;
TEVETA
Ministry of Energy
ERB; Ministry of Energy
ZABS; ERB
IFC: standards harmonization5; EU: IAEREP
EU: RE Portfolio (potential support area)
Other supporting projects
DfID: subsidy analysis (potential support area)
SIDA/ REEEP: Secretariat
USAID: SAEP
EU: RECP; SIDA: BGFZ, Energy for Agriculture
USAID: SAEP ; IFC: online information portal
EU: IAEREP, ElectriFi; SIDA: BGFZ; WB: ESAP;
DFID: AECF/ REACT, CDC, InfracoAfrica, Green Inv.
IFC: regulatory and legal review; EU: IAEREP
DfID: fiscal analysis
EU: IAEREP; UNDP
WB: ESAP; IFC: market assessment; USTDA
EU: IAEREP
EU: RE Portfolio; WB: ESAP3; USAID: SAEP
EU: IAEREP
IFC: standards harmonization5; EU: IAEREP
Top private-sector priorities1
Complete
In progress
Not startedB
C
SUPPORT TO THE TASKFORCE
14
CONTENTS
▪ Structure of the taskforce
▪ Support to the taskforce
▪ Taskforce meeting summary
▪ Next steps for USAID SAEP
▪ Appendix A: Co-operating partner mapping
▪ Appendix B: Interviews and reports used to date
15
THE APRIL 19TH TASKFORCE MEETING WAS ATTENDED BY
PARTICIPANTS FROM ACROSS 15 ORGANIZATIONS
SOURCE: USAID attendee meeting notes, debrief meeting with REEEP
TASKFORCE MEETING SUMMARY
In attendance Apologies received
Cooperating partners
▪ Department for International Development
▪ European Union
▪ Swedish International Development Agency
▪ United States Agency for International Development
▪ African Development Bank
▪ World Bank Group
Secretariat▪ Department of Energy
▪ Renewable Energy and Energy Efficiency Program
▪ N/A
Consultants ▪ Kuungana Consulting ▪ N/A
Government
▪ Office of the Vice President
▪ Ministry of Community
Development and Social
Services
▪ Department of Energy
▪ Energy Regulation Board
▪ Ministry of Finance
▪ Rural Electrification
Authority
▪ Zambian Bureau of
Standards
▪ Zambian Revenue
Authority
Private-sector
▪ Bioenergy representative
▪ Financing representative
▪ Mini-grid representative
▪ Solar Industry Association of Zambia
▪ Zambian Renewable Energy Association
▪ None
16
KEY DECISIONS INCLUDED THE APPROVAL OF THE TERMS OF
REFERENCE, AND THE PROPOSED FORMATION OF A SUB-
COMMITTEE TO TACKLE FISCAL EXEMPTIONS (1/2)
SOURCE: USAID attendee meeting notes, debrief meeting with REEEP
1 Private sector representative stated that this is the third collective effort of the Permanent Secretary to get the government to address these concerns, and no action has been taken to date.
Agenda item
Terms of Reference
(TOR)
Minutes
Fiscal analysis
presentation
What was presented
▪ Adjusted TOR
▪ Minutes from March 22nd
meeting
▪ DfID-commissioned “Analysis
of the economic effects of
fiscal policy options for off-grid
technologies in Zambia” by
Kuungana Advisory with two
major strands:
– Redrafting statutory
instruments is required
– New policy needs to be
complemented with
increased consistency of
enforcement at customs
Next steps / actions
▪ N/A – complete
▪ N/A – complete
▪ Workshop to be hosted on
specifics of the statutory
instruments (likely attended
by MOF, ZRA, private
sector)
▪ See sub-committee next
step below
Response(s) by taskforce group
▪ TOR approved with cosmetic
changes
▪ Minutes approved with
cosmetic changes
▪ Direct questions by private
sector representatives to
Ministry of Finance and
Zambian Revenue Authority on
whether #1 and #2 would be
implemented.1 There was
concern that a 2019 timeline is
too long to wait and will result in
no action.
– MOF were to attend
session with Kuungana to
understand specific details
further.
– ZRA representative said
limited action could be
taken without legislative
policy changes
TASKFORCE MEETING SUMMARY
17
KEY DECISIONS INCLUDED THE APPROVAL OF THE TOR AND 1ST
MEETING MINUTES, AND THE PROPOSED FORMATION OF A SUB-
COMMITTEE TO TACKLE FISCAL EXEMPTIONS (2/2)
SOURCE: USAID attendee meeting notes, debrief meeting with REEEP
1 Private sector representative stated that this is the third collective effort of the Permanent Secretary to get the government to address these concerns, and no action has been taken to date.
Priori-
ties and
next
steps
Short-
term
priorities
▪ Four areas proposed:
1. Redrafting current statutory
instruments
2. Operationalising these
instruments more
consistently at customs
3. Improving mini-grid
regulation (improving tariff-
setting)
4. Developing a strategy for
the bioenergy sub-sector
▪ Sub-committees to be
formed around each priority
area
– DfID, SAEP, MOF and
ZRA to form part of joint
sub-committee to
address #1 and #2
▪ Priorities to be finalized
after 1 month (by 18 May
2018)
▪ No opposition to proposed
areas of priority
▪ Ssuggestion to form sub-
committees around each
priority area
▪ Request by Chair to have a one
month no-objection period,
during which taskforce
members can submit feedback.
After this period, priorities
would be considered endorsed
Next
meeting
and AOB
▪ Date TBD – most likely end of
August 2018
▪ Date and venue to be sent
to taskforce members
▪ PR strategy to be
developed and
implemented to
communicate taskforce
activities to the public
▪ None
Medium-
term
priorities
▪ Some SAEP-identified barriers
(consumer finance, go-off-grid
campaign, vocational training)
were listed
▪ Priorities to be finalized
after 1 month
(by 18 May 2018)
▪ No clear next steps for
medium-term priorities
▪ None
TASKFORCE MEETING SUMMARY
Agenda item What was presented Next steps / actionsResponse(s) by taskforce group
18
CONTENTS
▪ Structure of the taskforce
▪ Support to the taskforce
▪ Taskforce meeting summary
▪ Next steps for USAID SAEP
▪ Appendix A: Co-operating partner mapping
▪ Appendix B: Interviews and reports used to date
19
SAEP HAS ALIGNED ITS SUPPORT TO FOCUS ON PRIORITY AREAS
WHERE FEWER COOPERATING PARTNERS ARE CURRENTLY ACTIVE
SOURCE: Team analysis
SHS-SPECIFIC PATH TO IMPACT
SHS –
SIAZ
support
SHS –
off-grid
taskforce
support
Proposed SAEP support Core issue
Other cooperating
partner support
Salesforce
effectiveness
▪ Targeted bootcamp training for sales agents
across SHS companies
Sales ability and persistence of
agents could be improved to
increase sales (esp. PAYG)
▪ N/A
Tax and duty
exemption policy
& enforcement
▪ Re-drafting of statutory instruments (with DfID)
▪ Zambian Revenue Authority and customs
workshop (with DfID)
Tax and duty exemptions (SIs)
are inconsistently applied to
imported products
▪ DfID – fiscal impact
of exemptions
analysis
Consumer
affordability
▪ Affordability ‘gap’ analysis for off-grid
technology
▪ Off-grid taskforce program mgmt. support to
follow-up on CP & govt financing commitments
for consumer uptake of SHS
SHS prices high relative to rural
household income, and with
higher share of cost per
connection borne by consumer
relative to grid connection
▪ DfID – proposed
subsidy analysis
Off-grid targets
in elec. plan
▪ Handover of model to World Bank and
supporting consultant, including follow-up
support as needed
National targets do not include
explicit off-grid share
▪ World Bank –
National Electri-
fication Strategy
Debt finance (for
developers)
▪ Mapping of current cooperating partner finance
commitments for off-grid taskforce private
sector representatives
▪ Off-grid taskforce program mgmt. support to
follow-up on and disseminate financing
opportunities
▪ Explore the development of financing
mechanisms to support the reduction of high
interest costs
SHS providers lack affordable
(debt) finance to operate at
desired scale and are not
always aware when new funding
windows will become available
from cooperating partners
▪ EU – ElectriFi, REA
fund
▪ SIDA/USAID –
Beyond the Grid
Ongoing support
to SIAZ for scale-
up
▪ Regular attendance at SIAZ meetings (monthly
basis), program support including dashboards
to create transparency over progress, and
content support on cross-cutting challenges
SIAZ in early stages of
development, with scope to
improve and systematize
internal processes
▪ N/A
Route-to-market
▪ Route-to-market prioritization & direct support to
companies (e.g., common logistics platform
leveraging geospatial model)
Low density and limited
distribution network drive up
costs
▪ N/A
15
4
3
5
6
1
17
10
11
20
PROPOSED WORKPLAN THROUGH TO SEPTEMBER# Task number
Mar Apr May Jun Jul Aug Sep
19. 26. 02. 09. 16. 23. 30. 07. 14. 21. 28. 04. 11. 18. 25. 02. 09. 16. 23. 30. 06. 13. 20. 27. 03. 10. 17. 24.
Implementation support
Implementa-
tion support
Customised analysis for private sector &
ongoing support to other stakeholders
▪ Route to market
▪ Salesforce effectiveness
Model
public
release
Barrier resolution 2: fiscal
exemptions and
enforcement
▪ Support to REEEP on meeting preparation
▪ Consolidating next steps between taskforce meetings
Barrier resolution 1:
Consumer
financing
Model
com-
plete
▪ Go Solar campaign
▪ Route to market
▪ Quality standards
▪ Content support on priority
initiatives
16-Apr-2018
30-Apr-2018
04-Jun-2018
30-Apr-2018
28-Sep-2018
20-Aug-2018
27-Aug-201830-Mar-2018
30-Jul-201830-Apr-2018
29-Jun-2018
Activity
Off-grid taskforce
Enabling environment support
▪ Program management support
Geospatial model
SHS Expansion Program
Operational support
to companies via SIAZ
▪ SIAZ program management
and initiative tracking
▪ SIAZ content support
09-Apr-2018
OC 4
OC2: Workshop with ZESCO on geospatial connections opportunity (TBD)
1 2 3
54
98 10
11
6 7
12
PROPOSED WORKPLAN
a
b
c
21
Apr May Jun Jul
16 23 30 7 14 21 28 4 11 18 25 2 9
▪ Provide content support on as-needed basis to
SIAZ members (e.g., consumer affordability survey
industry best practices)
▪ Connect SIAZ and members to relevant
stakeholders to de-bottleneck issues
Activity
Model email to SHS players/ uploaded on SIAZ dropbox
▪ Make model publicly available Press
release shared
▪ Continue project management support to SIAZ,
including on initiatives from SHS Program
▪ Share model with SHS players
▪ Generate customized geospatial
results as needed, for SHS players
Model overview presented at SIAZ
Geospatial
model
SIAZ
initiative
tracking
and project
manage-
ment
support
SIAZ
content
support on
priority
initiatives
WORKPLAN DEEP-DIVE: SHS EXPANSION PROGRAM
NEXT STEPS FOR SAEP
a
22
WORKPLAN DEEPDIVE: CONSUMER FINANCING
Apr May Jun
23 30 7 14 21 28 4 24 25 26
▪ Align on ‘zones’ of priority areas for SHS expansion
Engage relevant stakeholders
Conduct text-based survey (for ~1,000 respondents)
Design text-based and qualitative survey questionnaire
Develop list of target regions
from SHS discussions
Sign contract with
preferred vendorProcure vendor for text-based surveys
Conduct qualitative surveys in targeted regions
Finalize report on consumer financing (demand side)Analyze collected data
and synthesize findings
▪ Quantify cost implications for serving each ‘zone’
from SHS provider perspective
Date
Identify
potential financing partners
PS with key SHS players
▪ Develop appropriate financing mechanisms,
and relevant financiers (e.g., private lenders,
government, co-operating partners)
Working
session #2
with DFID
▪ Quantify affordability gap for consumers
(by income group and location)
▪ Approach financiers, co-operating partners
and government with pilot proposal
▪ Develop consumer financing pilot proposal
(collaborating with DfID) Working
session #1
with DFID
Consumer
affordability
Consumer
financing:
supply side
Consumer
financing:
pilot
NEXT STEPS FOR SAEP
Financing
mechanisms
b
23
Apr May Jun Jul
16 23 30 7 14 21 28 4 11 18 25 2 9
OGTF Secretariat▪ Determine partnership support model (DfID, SAEP)
▪ Finalise report with SI recommendations Kuungana (DfID)
▪ Confirm proposed SI revisions and align with MoF
07-May-2018
15-Jun-2018
SAEP - Archie
▪ Track CfP through Cabinet & budget discussions
DfID/SAEP (Secretariat)
SAEP - Archie
▪ Align recommendations with all stakeholders
(private sector, ZRA, MoF, MoE)
11-Jul-2018
DfID/SAEP - Archie
SAEP - Archie
▪ Understand ‘most affected’ customs sites
▪ Submit SI revisions under MoF “call for proposals”) DfID/SAEP (Archie)
▪ Host information session for private sector
SAEP - Archie
Owner (support)Activity
▪ Host capacity building workshop with ZRA
Exemption
policy (i.e.
SI re-
drafting)
Enforce-
ment
WORKPLAN DEEPDIVE: FISCAL EXEMPTIONS AND ENFORCEMENT
NEXT STEPS FOR SAEP
c
24
CONTENTS
▪ Structure of the taskforce
▪ Support to the taskforce
▪ Taskforce meeting summary
▪ Next steps for USAID SAEP
▪ Appendix A: Co-operating partner mapping
▪ Appendix B: Interviews and reports used to date
▪ Taskforce meeting summary
▪ SAEP support to date
▪ Next steps for SAEP
25
Development partners working in the off-grid sector
SOURCE: Press search, interviews
▪ Development
partner programs
provide various
forms of assistance:
policy
recommendations,
technical
assistance,
financing and
capacity building
▪ The off-grid
taskforce will
provide valuable
input to the policy
framework
▪ Most programs are
not linked
to an explicit set of
target connections1
1 SIDA's Beyond the Grid program is an exception with specific targets for assisted companies
A NUMBER OF DEVELOPMENT PARTNER PROGRAMS ARE
SUPPORTING THE SCALE-UP OF OFF-GRID ELECTRIFICATION
APPENDIX A: CO-OPERATING PARTNER MAPPING
26
Donor name
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
Description
AfDB
EU
DFID1
Program name Support type
Renewable Energy Financing ▪ Provide blended financing for IPPs working
Solar PV and small hydro
TA F
ElectriFi – Zambia window ▪ Provide risk-based financing to projects F
Renewable Energy
Cooperation Program2
(RECP)
▪ Facilitate private-sector cooperation,
supports access to finance and innovation
and skills development in Africa
CTAP
Clean Energy Program/ Africa
Energy Compact
▪ Provide policy support to create the enabling
environment for SHS scale-up
TAP
Africa Enterprise Challenge
Fund
▪ Invest in enterprises active in the SHS
markets
F
New Deal on Energy
for Africa
▪ Provide policy, financing and capacity
building to reach universal access by 2025
CTAP F
1 DFID has additional forms of support not exclusively focused on energy (i.e. Financial Sector Deepening supports PAYG for SHS and CDC Group invests in on and off-grid providers)
2 Supported by multiple European governments (incl. Austria, Finland, Germany, Italy, Netherlands and Sweden)
F
▪ Provide policy and technical support to GRZ
and skills development to all incl. private
sector
▪ Support GRZ on mini-grid smart subsidies
▪ Fund demo project on RE mini-grids based
on PPP business models
CTAP FIncreased Access to
Electricity and Renewable
Energy Production (IAEREP)
DEVELOPMENT PARTNERS’ MAJOR FOCUS IS ON PROVIDING
FINANCING AND TECHNICAL ASSISTANCE TO THE SECTOR (1/2)
PRELIMINARY
TA
SOURCE: Cooperating Partners' Matrix on Projects focusing on Access (last update: 13 March 2018), Press search, project websites and documentation, interviews
APPENDIX A: CO-OPERATING PARTNER MAPPING
27SOURCE: Cooperating Partners' Matrix on Projects focusing on Access (last update: 13 March 2018), Press search, project websites and documentation, interviews
PRELIMINARY
1 Component C focuses on capacity building for on-grid and off-grid
Donor name Description
UNDP
Program name Support type
China-Zambia South-South
Cooperation on Renewable
Energy Technology Transfer
▪ Improve energy access and living conditions
in rural Zambia through South-South
Cooperation and supporting tech deployment
Electricity Service Access
Project (ESAP) –
Components B and C
▪ Support GRZ on mini-grid smart subsidies
and financing mini-grid pilots
▪ Develop National Electrification Strategy1
(including GIS least cost electrification plan)
▪ Support capacity building and project
implementation
Beyond the Grid for Zambia
(BGFZ)
▪ As detailed above for SIDA F
Southern Africa Energy
Program
▪ Provide support to increase MW and
connections in 11 SADC countries
CTAP
USTDA and USADF funding ▪ Provide financial support to mini-grid
developers through specific grants
TA F
World
Bank
U.S.
Govern-
ment and
USAID
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
TAP
CTAP F
DEVELOPMENT PARTNERS’ MAJOR FOCUS IS ON PROVIDING
FINANCING AND TECHNICAL ASSISTANCE TO THE SECTOR (2/2)
SIDA Beyond the Grid Fund for
Zambia (BGfZ)
▪ Support off-grid providers to deliver 1 million
connections using clean energy solutions
F
Power Africa ▪ Several projects in Zambia (incl. technical
assistance to the MoE and the regulator to
develop RE feed-In tariff)
CTAP
APPENDIX A: CO-OPERATING PARTNER MAPPING
28
AFRICAN DEVELOPMENT BANK: NEW DEAL ON ENERGY
FOR AFRICA
Duration10 Years (2016-2025)
Budget
▪ USD 12 B from AfDB
▪ Additional USD 45 – 50 B of co-
financing
Supported
agencies
African governments, private-sector actors,
bilateral and multilateral energy sector
initiatives
Cooperating
agencies
Several
Off-grid focus areaAll technologies
Target impact
(All Africa)
▪ Increase on-grid generation capacity by
160 GW by 2025
▪ 130 M new on-grid connections by 2025
▪ 75 M new off-grid connections
▪ Increase access to clean cooking energy
for 130 M households
Program
pillars
The program is founded on seven
strategic themes:
i. Establish an enabling policy
environment
ii. Enable utility companies for success
iii. Increase the number of bankable
energy projects
iv. Increase the funding pool to deliver
new projects
v. Support ‘bottom of the pyramid’
energy access programs
vi. Accelerate major regional projects
and drive integration
vii. Rolling out waves of country-wide
energy ‘transformations
Program
description
▪ The project is a partnership-driven effort
to achieve universal access to energy
across the continent by 2025
▪ The AfDB is working with several
stakeholders to develop a
Transformative Partnership on Energy
for Africa a platform for public-private
partnerships for innovative financing
in Africa’s energy sector.
SOURCE: Project brochure AfDB Link; Project strategy document Link
Support type
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
Program Overview1
CTAP F
1 Includes Africa-wide project details
APPENDIX A: CO-OPERATING PARTNER MAPPING
29
DFID: CLEAN ENERGY PROGRAM/AFRICA
ENERGY COMPACT
Duration
Actions in the Compact agreement to be
implemented over a 5 year timeframe (to
be determined)
Budget
Varies (Funding available from a range of
DFID energy programs to support the
implementation of the Energy Africa
Compact1)
Supported
agencies
REA, Office for Promoting Private Power
Investment (OPPPI), ERB, ZABS
Cooperating
agencies
Energy Africa, Zambia Development
Agency, Ministry of Energy
Off-grid focus areaAll technologies (some emphasis on SHS)
Program
descriptionTarget impact
(Zambia)
Universal energy access by 2030
▪ The compact seeks to
accelerate expansion of the
SHS market
▪ It is a voluntary action plan
(detailed below) between Energy
Africa partners, DFID and the
Government of Zambia on policy
actions and support needed to
accelerate the SHS market
Major actions
1. Develop off-grid targets, create
off-grid task force and conduct
economic analysis on job creation
2. Finalize RE strategy
3. Extend tax exemptions to SHS
products
4. Provide capacity support to ZBS/
ERB
5. Develop scheme for certifying
SHS installers
6. Establish the Solar Association
7. Encourage supply of off-grid solar
products
8. Support financing products for
SHS
SOURCE: DFID Energy Africa Compact
Support type
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
Program Overview
1 Example- DFID's Africa Clean Energy programme (ACE) which will support SHS markets in Africa (£43m, 2016-21) shared between 14 countries inc. Zambia. This will fund: 1) TA 2) Finance for
SHS businesses 3) Support for private investment into the sector
TAP F
APPENDIX A: CO-OPERATING PARTNER MAPPING
30
DFID: AFRICA ENTERPRISE CHALLENGE FUND
DurationOngoing (commenced 2012)
Budget
▪ Total investment portfolio of USD 10 M
▪ Funding to businesses ranges from
USD 0.25 M to USD 1.5 M
Supported
agencies
Private-sector actors in SHS market
Cooperating
agencies
Africa Enterprise Challenge Fund (AECF);
Several European governments,
Consultative Group to Assist the Poor and
IFAD
Off-grid focus areaSHS, mini/ microgrids, power generation
through all renewable energy sources
Target impact
(All Africa)
Drive innovation in companies having the
potential to build off-grid stand - alone solar
household systems, affordable to people
and businesses in rural areasProgram
description
Primary objectives
▪ Support low-cost sources of
renewable energy
▪ Increase access to end-user
financing for clean energy
▪ The program invests in
enterprises active in the SHS
market or have a strategic
orientation towards these
markets
▪ The fund provides catalytic
funding as grants or zero
interest loans to private sector
businesses that have a positive
impact on rural poor in Sub-
Saharan Africa
SOURCE: Project website- Link
Support type
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
Program Overview1
F
1 Includes Africa-wide project details
APPENDIX A: CO-OPERATING PARTNER MAPPING
31
EUROPEAN UNION: INCREASED ACCESS TO ELECTRICITY AND
RENEWABLE ENERGY PRODUCTION (IAEREP)
SOURCE: CP Activities matrix; Discussion with EU Delegation (Mar 2018)
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
1 EU seconded a long-term advisors managing a pool of short term experts for project preparation and management support
Program Overview
Primary objectives
▪ Support public institutions to
develop regulatory framework
for renewable energy
▪ Provide capacity building to
public and private sector to
deploy RE solutions
▪ Support off-grid RE projects in
rural areas. Call for proposals
to demonstrate sustainable
PPP business models in RE
mini-grid development
(primarily hydro, solar PV and
hybrid systems)
Program
description
▪ The project is the EU’s portfolio
of support in the Zambian off-
grid sector using the 3 pillars
(detailed below)
Support type CTAP F
Target impact
(Zambia)
▪ Additional > 50,000 rural households
and >500 businesses with access to off-
grid electricity
Budget
▪ EU provides EUR 40 M (investment
grant to private sector: EUR 25 million)
▪ Private-sector co-financing expected to
reach > USD 25 M
Supported
agencies
▪ Private-sector (financing)
▪ Public-sector (regulatory and capacity
building support incl. ERB and REA1)
Cooperating
agencies
▪ Several
Duration
▪ 7 years (2016-2022)
Off-grid focus area
▪ Mini-grids powered by hydro or
solar/hybrid PPP
APPENDIX A: CO-OPERATING PARTNER MAPPING
32
ELECTRIFI – ZAMBIA WINDOW
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
1 In the form of development finance, debt, quasi-equity, equity and guarantees
Duration
2017-2024
Budget
▪ EUR 40 M
▪ Individual project funding ranges from
USD 0.5 to 10 M1
Supported
agencies
Private-sector actors
Cooperating
agencies
Various Development Finance Institutions
Off-grid focus areaAll technologies
Program
description
Support type F
Target impact
(Zambia)
To increase access to reliable and
sustainable energy, with a focus on rural
areas in emerging and developing
countries
Primary objectives
Contribute to the growth of viable
businesses and projects that
create new connections to
reliable and sustainable energy
The project supports private
sector investments to bring
access to clean energy in
underserved areas in Zambia
Activity in Zambia
Elaboration of country Investment
strategy. Call expected to be open
in the second part of 2018
SOURCE: Project website- link
Program Overview
APPENDIX A: CO-OPERATING PARTNER MAPPING
33
EUROPEAN UNION: RENEWABLE ENERGY COOPERATION
PROGRAM (RECP) FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
1 Includes grants, repayable grants, results-based financing, debt, equity, quasi-equity, guarantees, mezzanine capital
Duration
10 years (2011-2020)
Target impact
(Zambia)
▪ 10,000 MW of hydropower facilities
▪ 5,000 MW of wind power capacity
▪ 500 MW of solar energy capacity
▪ Tripling capacity of other renewables
Budget
▪ Nearly 40 funding instruments1 across
African economies ranging between
USD 0.1- 50 M
▪ Total financing need > ~ EUR 20 B
Supported
agencies▪ Several private agencies across Africa
▪ REA in Zambia (detailed below)
Cooperating
agencies
Several (incl. Austrian, Finnish, German
Italian, and Dutch ministries); GIZ
implementing
Off-grid focus areaAll renewable technologies
Primary objectives
(1) Increase access to energy
(2) Improve security of energy
supply
(3) Protect the environment
Program
description
▪ The RECP is a multi-donor
program that supports the
development of markets for
renewable energy in Africa
▪ This includes the provision of
information on energy markets,
identification of project
opportunities, matchmaking
between project developers,
technology suppliers, and service
providers for joint project and
business development and
facilitating access to finance
Activity in Zambia
Evaluating investee companies in
Zambia (to-date, 1 company has
reached final stage)
Support type CTAP
SOURCE: RECP Strategy 2020; Discussion with EU Delegation (Mar 2018)
Program Overview (includes Africa-wide project support)
APPENDIX A: CO-OPERATING PARTNER MAPPING
34
SIDA AND USAID (POWER AFRICA): BEYOND THE GRID FUND
FOR ZAMBIA (BGFZ) FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
1 Additional funds raised through co-financing; an additional 16.9 MUSD are under negotiation
Duration
5 years (2016-2020)
Budget
▪ USD 11.5 M from BGFZ
▪ Additional USD 17.7 M by Energy
Service Companies1
Supported
agencies
▪ Energy Service Companies
Cooperating
agencies
USAID; REEEP (implementing agent)
Off-grid focus areaSHS; Mini-grid
Program
description
Support type F
SOURCE: Project Website- link
Target impact
(Zambia)
Providing market-based off-grid
electricity to 1M Zambians in rural/ peri-
urban areas
Primary objectives
Incentivize and catalyze market
entry and scale-up of market-
based solutions for off-grid
electricity provision to 1 M
Zambians in rural and peri-urban
areas by working with carefully
selected off-grid Energy Service
Providers (ESPs)
A results-based “impact
procurement” fund for “energy
service subscriptions” – pre-defined
long-term energy services to end
customers. The Fund does not
directly procure energy services on
behalf of customers. Instead, the
fund closes the “viability gap”
on a per-connection basis,
incentivizing rollout and scaling up
in areas that would not represent
viable markets for companies.
Program Overview
APPENDIX A: CO-OPERATING PARTNER MAPPING
35
USAID: SOUTHERN AFRICA ENERGY PROGRAM (SAEP)
Duration5 Years
Target impact
(11 countries in
Southern Africa)
Budget
USD 70 M
Supported
agencies
REA, Ministry of Energy
Cooperating
agencies
Deloitte, Another Option, CrossBoundary,
Worley Parsons
Off-grid focus areaSHS, Mini-grid
Support type
▪ 3,000 MWs of new power generation
▪ 1,000 MWs of new transmission capacity
▪ 3 M new connections
Program
description
Primary objectives
SAEP will address five key
constraints to energy sector
investment, including:
(1) Ineffective regulation, planning
and procurement for energy
(2) Low commercial viability of
utilities
(3) Limited regional harmonization
and cross border electricity
trade
(4) Lack of demonstrated and
scaled clean and renewable
energy technologies and
practices
(5) Weak institutional and human
resource capacity for energy
sector management.
The Southern Africa Energy
Program (SAEP) seeks to increase
investment in electricity supply and
access in Southern Africa by
strengthening the regional enabling
environment and facilitating
transactions
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
Program Overview
CTAP
SOURCE: SAEP Workplan
APPENDIX A: CO-OPERATING PARTNER MAPPING
36
THE WORLD BANK: ELECTRICITY SERVICE ACCESS
PROJECT – OFF-GRID ACCESS EXPANSION (COMPONENT B)
Duration7 years (2017 to 2023)
Target impact
(Zambia)
Budget
5.9 MUSD for off-grid electricity expansion
(total project cost of ~ USD 37 M)
Supported
agencies
Government of Zambia, REA, ZESCO
Cooperating
agencies
SIDA (co-financing) Development Bank of
Zambia, MoE (oversight through Project
Steering Committee)
Off-grid focus areaMini-grid and SHS
Program
description
Support type
22,000 connections (both on and off-grid)
Primary objectives
Enable private-sector participation
in off-grid electrification
▪ The project will fund upstream
activities to enable private-
sector participation in the off-
grid market.
▪ Supporting activities include:
– Identifying and scoping off-
grid sites
– Helping the GRZ address
existing regulatory
impediments
– Building capacity at key
institutions
– Designing financial
mechanisms
▪ The component will also fund the
pilot of two finance mechanisms
to support private-sector
electrification through mini-grids
and SHS:
– Smart Grant Subsidy Facility
– Loan Facility
SOURCE: Electricity Service Access Project (Project Appraisal Document)
FinancingFPolicy supportP Other technical assistanceTA Capacity buildingC
Program Overview
CTAP F
APPENDIX A: CO-OPERATING PARTNER MAPPING
37
CONTENTS
▪ Structure of the taskforce
▪ Support to the taskforce
▪ Taskforce meeting summary
▪ Next steps for USAID SAEP
▪ Appendix A: Co-operating partner mapping
▪ Appendix B: Interviews and reports used to date
▪ Taskforce meeting summary
▪ SAEP support to date
▪ Next steps for SAEP
38
Diagnostic
results are
as of April
2018
WE HAVE SYNTHESIZED INPUTS FROM 35 INTERVIEWS AND 10
REPORTS ACROSS THE OFF-GRID SECTOR
35 stakeholder interviews have been completed to date…
… supplemented by various
recent reports
4
8
7
35
16
PlannedCompleted Example recent reports
▪ ENEA 2016: Developing Mini-
grids in Zambia: How to build
sustainable and scalable
business models?
▪ World Bank 2017: Zambia,
electricity access project
▪ World Bank/ ESMAP/
SE4ALL 2017: State of
electricity access
▪ World Bank/IEA 2017: Global
tracking framework, progress
toward Sustainable Energy
▪ Lighting Global/World
Bank/ESMAP 2018: Off-Grid
Solar Market Trends Report
▪ RECP 2030 Strategy: Rural
electrification with renewable
energies in East Africa
▪ IRENA 2014: Mini-grid policy
toolkit
▪ Bloomberg new energy
finance report 2016
▪ AfDB: The Bank’s Strategy for
the New Deal on Energy for
Africa
▪ DFID: Africa Energy Compact
DFID
IFC
REEEP
USAID
AFDB
EU
SIDA
World Bank
Donor/DFI
Radian
Rent-to-Own
Solar Village
Standard Micro-grid
Sunray Power
Company
Sustain Power
Zengamina Power
Ltd
Fenix Intl
Suntech
Sunny Money
SupaMoto
Muhanya
Solar
Vitalite
Id Solar
Solutions
Smart Village
Greenheart
SHS & mini-
grid
providers in
Zambia
CrossBoundary
mKopa
SIAZ
ZARENA
Sunfunder
TomorrowVentures
Africa Enterprise
Challenge Fund
AHL Venture
Partners
Other
SOURCE: Interviews
Ministry of Energy
ZRA
ERB
REA
Government
agencies
ZABS
APPENDIX B: INTERVIEWS AND REPORTS USED TO DATE