policy and regulatory framework for clean energy mini

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High-level workshop on energy access in West-Africa March 27-28, 2017 Abidjan, Côte d’Ivoire Moderator: Dr. Peggy Mischke, RECP Policy Advisory Policy and regulatory framework for Clean Energy Mini-grids National Experiences in the ECOWAS region

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Page 1: Policy and regulatory framework for Clean Energy Mini

High-level workshop on energy access in West-Africa

March 27-28, 2017 Abidjan, Côte d’Ivoire

Moderator: Dr. Peggy Mischke, RECP Policy Advisory

Policy and regulatory frameworkfor Clean Energy Mini-grids

National Experiences in the ECOWAS region

Page 2: Policy and regulatory framework for Clean Energy Mini

Content

Session 1:

Energy and Electricity Policy for Clean Energy Mini-Grids (CEMGs)

1. An example from Liberia

2. An example from Ivory Coast

3. An example from Cape Verde

4. An example from Sierra Leone

Session 2:

Economic, Customer and Environmental Policy and Regulation for CEMGs

1. An example from Ghana

2. An example of a quality assurance framework

3. An example from Senegal

27-28 March 2017, Abidjan 2

Page 3: Policy and regulatory framework for Clean Energy Mini

Content - continued

Session 3:

Licenses, Contract Regulation and Financial Support Schemes for CEMGs

1. An example from Mali

2. An example from Nigeria

3. An example from the Gambia

4. An example from Niger

Technical Assistance and Capacity Building for CEMGs

327-28 March 2017, Abidjan

Page 4: Policy and regulatory framework for Clean Energy Mini

What barriers are to overcome for a quick scale-up of rural energy access programmes?

427-28 March 2017, AbidjanRef: IFC, 2017

Business Model Access to Finance

Policy, Legal &

Regulatory

Framework

Implicit Electricity

Demand

Local Capacity &

Talent

Market

Intelligence

Page 5: Policy and regulatory framework for Clean Energy Mini

Decision making for CEMGs: No one size fits all solution!

527-28 March 2017, Abidjan

Ref: EUEI PDF Mini-Grid Policy Toolkit, 2014

Page 6: Policy and regulatory framework for Clean Energy Mini

A conducive policy and regulatory framework for Clean Energy Mini-grids (CEMGs) is needed.

6

Session 3

Session 2

Session 1

27-28 March 2017, Abidjan

Ref: EUEI PDF Mini-Grid Policy Toolkit, 2014

Page 7: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Thematic focus:

• National Electricity or Electrification Policy

• Rural Electrification Strategy and Master Plan

• Energy and Electricity Law

• Tariff Policy and Regulation

727-28 March 2017, Abidjan

Page 8: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

A National Electricity or Electrification Policy:

• defines objectives, identifies priorities, and outlines the broad

guidelines for sector development, as a whole, or with focus on a

specific sub-sector, such as rural electrification;

• is a pillar of public support of rural electrification strategies, targets

and programmes, including mini-grid initiatives;

• is guided by the political aim for universal national electricity access;

This policy lays the groundwork for the entire enabling environment and

could include an explicit decision to integrate mini-grids into a rural

electrification approach.

827-28 March 2017, Abidjan

Page 9: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

A Rural Electrification Strategy and Master Plan:

• includes a roadmap how to achieve national electricity targets on the

base of a longer term planning horizon;

• indicates grid and off-grid areas on the basis of state of the art

planning tools to assist with the selection of mini-grid project sites;

• provides key planning data to mini-grid project developers, e.g.

renewable energy resource potentials, population density, current

energy access situation, costs;

• needs to be reviewed periodically to adapt to changing circumstances

and evolving energy access targets.

927-28 March 2017, Abidjan

Page 10: Policy and regulatory framework for Clean Energy Mini

Rural electrification planning is more than just mini-grids!

1027-28 March 2017, Abidjan

Ref: EUEI PDF Mini-Grid Policy Toolkit, 2014

Page 11: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

An Energy, Electricity or Renewable Energy Law:

• establishes the legal and institutional framework for public planning

and the implementation and enforcement of regulations for rural

electrification in general and mini-grids in particular;

• specifies the responsibilities of important actors and provides the

basis for any specific regulations or promotion instruments, such as a

rural energy fund;

• is usually established through an act of parliament.

1127-28 March 2017, Abidjan

Page 12: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

An Energy, Electricity or Renewable Energy Law:

• establishes the legal and institutional framework for public planning

and the implementation and enforcement of regulations for rural

electrification in general and mini-grids in particular;

• specifies the responsibilities of important actors and provides the

basis for any specific regulations or promotion instruments, such as a

rural energy fund;

• is usually established through an act of parliament.

1227-28 March 2017, Abidjan

Page 13: Policy and regulatory framework for Clean Energy Mini

A recent global benchmarking of regulatory indicators for energy access includes mini-grid frameworks.

1327-28 March 2017, Abidjan

Ref: ESMAP RISE, 2016

Page 14: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Country experiences:

Mr. Dele Shobayo

Ministry of Lands, Mines and Energy

Liberia

1427-28 March 2017, Abidjan

Page 15: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Country experiences:

Mr. Ghislain Tanoh / Mr. Ahamed Diarrassouba

Société des Énergies de Côte d’Ivoire (CI- Énergies)

Ivory Coast

1527-28 March 2017, Abidjan

Page 16: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Tariff Policies and Regulations (including Connection Fees):

• comprise any charge, fee, price or rate that has to be paid for

purchasing energy and electricity services;

• are central to the viability of any rural electrification initiative,

including mini-grid businesses;

• depend on the mini-grid business model: uniform national tariffs

versus site and project-specific cost-reflective tariffs.

Tariffs must allow for a balance between commercial viability of a mini-

grid project and the consumers’ ability and willingness to pay, often

considering targeted subsidies.

1627-28 March 2017, Abidjan

Page 17: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Country experiences:

Ms. Karine Monteiro

Economic Regulatory Agency (ARE)

Cape Verde

1727-28 March 2017, Abidjan

Page 18: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Country experiences:

Mr. Benjamin Kamara

Ministry of Energy

Sierra Leone

1827-28 March 2017, Abidjan

Page 19: Policy and regulatory framework for Clean Energy Mini

Session 1: Energy and Electricity Policy for CEMGs

Questions and Answers

1927-28 March 2017, Abidjan

Page 20: Policy and regulatory framework for Clean Energy Mini

Thank you for your attention!

2027-28 March 2017, Abidjan

ECOWAS Centre for Renewable Energy &

Energy Efficiency (ECREEE)

Praia, Cape Verde

www.ecreee.org

EU Energy InitiativePartnership Dialogue Facility

(EUEI-PDF)

c/o Deutsche Gesellschaft fürInternationale Zusammenarbeit

(GIZ) GmbH

Eschborn, Germany

www.euei-pdf.org

intecGOPA - International

Energy Consultants GmbH

Bad Homburg, Germany

www.gopa-intec.dewww.africa-eu-renewables.org

www.africa-eu-renewables.org

Page 21: Policy and regulatory framework for Clean Energy Mini

Dr. Peggy MischkeEconergyPM – Clean Energy Expertisewww.peggymischke.com