summary of 2019 p4g scale-up partnership finalists · 2/19/2008 · efficiency services limited...

SUMMARY OF 2019 P4G SCALE-UP PARTNERSHIP FINALISTS 2 August 2019

Confidential to P4G Board of Directors and National Platforms

TABLE OF CONTENTS Summary of P4G 2019 Scale-Up Partnership Finalists .......................................................................... 1

Summary of Existing P4G Partnerships Applying for Additional Scale-Up Funding .............................. 2

Reduce, Recycle and Recover Packaging Initiative (3RI) ....................................................................... 3

Energy Efficiency Alliance for Industry (E² Alliance) ............................................................................. 5

iDE-Plastic Bank Partnership to Create Sustainable Circular Economy for Plastic Waste in Vietnam .. 7

PlusPlus ................................................................................................................................................. 9

Sustainable Sourcing at Scale .............................................................................................................. 10

Africa GreenCo .................................................................................................................................... 12

Clean Energy Investment Accelerator (CEIA) ...................................................................................... 14

Sustainable Special Economic Zones Africa (SSEZ) ............................................................................. 16

Appendix 1 – Evaluation Criteria ......................................................................................................... 19

P4G Confidential 1

SUMMARY OF P4G 2019 SCALE-UP PARTNERSHIP FINALISTS

Partnership name Partners *Administrative partner

Primary SDG

Countries of implementation

Description

1 Reduce, Recycle and Recover Packaging Initiative (3RI)

Verra*, BVRio, Danone, Nestlé Veolia

Circular economy

Colombia, Mexico, India, Indonesia, Egypt, Ghana, Brazil, Vietnam

Will catalyze responsible design, use and recovery of packaging materials. Approaches this goal by helping companies reduce their plastic waste footprints through a plastic crediting mechanism that will increase the value of waste plastic and thus scale socially-responsible waste recovery efforts around the world.

2 Energy Efficiency Alliance for Industry in India (E² Alliance)

Institute for Sustainable Communities (ISC)*, Energy Efficiency Services Limited (EESL)

Energy India, with replication activities in Vietnam, Bangladesh, Indonesia and the Philippines

A cross-sector network to scale the adoption of energy-efficient motors in India’s industrial sector through demand-driven strategies. Aims to catalyze the procurement of 50,000 motors and mobilize an estimated $24.28 million in private sector investment during a 24-month period.

3 iDE-Plastic Bank (Partnership to Create a Sustainable Circular Economy for Plastic Waste in Vietnam)

iDE*, Plastic Bank Circular economy

Vietnam Sustainable plastic waste management ecosystem of 600 local collectors of plastic waste who previously worked in informal waste collection. Through this network, aims to reduce the source of ocean plastic, increase livelihoods, and catalyze greater plastic reuse through multinational brands

4 PlusPlus (formerly AgriCrowd)

Stichting Solidaridad Europe*, Coöperatie ICCO U.A., Hands-on B.V., Truvalu

Food & Agriculture

Colombia, Ghana, Indonesia, Kenya, Mexico, Zambia

A crowdfunding platform to scale up underserved small-to-medium-size agri-food enterprises in emerging countries. By 2021, will unlock €12.5 million of investment capital for 30 agricultural entrepreneurs, serving at least 30,000 farmers in 6 or more countries.

5 Sustainable Sourcing at Scale in India

IDH Sustainable Trade Initiative*, Rythu Sadhikara Samstha (RYSS), Sustainable India Finance Facility (SIFF)

Food & Agriculture

India, building on learnings from Colombia, Indonesia, and Vietnam

Use Verified Sourcing Area model to scale up sustainable production of agricultural commodities in India, aiming to roll out to 365,000 ha of land in Andhra Pradesh.

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SUMMARY OF EXISTING P4G PARTNERSHIPS APPLYING FOR ADDITIONAL SCALE-UP FUNDING

Partnership name Partners *Administrative partner

Primary SDG

Countries of implementation

Description

1 Africa GreenCo Africa GreenCo*, GreenCo Power Services Limited

Energy Zambia, South Africa, Zimbabwe, Namibia

GreenCo will be a regional creditworthy intermediary off-taker and power services provider, reducing the credit risk and therefore cost of renewable energy generation projects within the Southern African Power Pool (SAPP). The proposal for additional 2019 P4G funding is to expand their work by beginning operations in Zambia as well as taking advantage of the soon-to-be-completed connection of all 14 mainland members of ECOWAS to rapidly operationalize and expand into the West African Power Pool (WAPP).

2 Clean Energy Investment Accelerator (CEIA)

National Renewable Energy Laboratory*, Allotrope Partners

Energy Colombia, Indonesia, Vietnam

Mobilizing clean energy investment at scale through 3-pronged strategy to support: purchasers, the pipeline of projects, and clean energy policies. Help companies accelerate renewable energy procurement and promote replication in other countries. This partnership received 2018 P4G scale-up funding for Colombia and Vietnam, demonstrating 24% cost savings for buyer companies compared to typical solar prices in Colombia. The proposal is to expand their work in Indonesia and Colombia.

3 Sustainable Special Economic Zones Africa (SSEZ)

Made In Africa Initiative*, LADOL, SYSTEMIQ, NIRAS

Circular Economy

Nigeria, Ethiopia, Kenya

Continue development of 3 SSEZs in Nigeria, Kenya and Ethiopia that can transform industrial development to drive sustainable commercial, social and environmental impact leading to a net 50,000 jobs created, USD 450-600m of sustainable infrastructure, USD 1bn-2bn FDI, and 100 MW of clean energy generation. Additional 2019 P4G funding is requested to develop the master plans for the 2 sites in Kenya and Ethiopia and to seek potential tenants and investors for all 3 sites. .

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REDUCE, RECYCLE AND RECOVER PACKAGING INITIATIVE (3RI)

Primary SDG Addressed: 12 (Responsible Consumption and Production (Circular Economy))

Partners: Verra (administrative partner), BVRio, Danone, Nestle, Tetra Pak, Conservation International,

South Pole, Veolia

Countries of Impact: Vietnam, Mexico, Kenya, Indonesia, Colombia, Chile, Egypt, Brazil

Aim: Develop and pilot a new market mechanism that jumpstarts and finances the most effective waste

collection and recycling efforts around the world and generates credits that corporates can use to

indirectly address any residual plastic waste associated with their products.

Overview:

Through a broad coalition of private partners, 3R aim to (1) catalyze the circular economy through a new

market mechanism that increases the value of waste plastic and incentivizes the reduction, recycling and

recovery of waste and (2) support companies in assessing, reporting on and reducing their plastic waste

footprints and mitigation actions. 3R will improve the value of plastic waste through the creation of a

Corporate Standard, a Project Standard, and the 3R Transaction Platform.

Plastic waste is a growing burden on municipalities and environment and the consumer goods industry

is under pressure to address the problem. Currently, plastic waste has zero- or low-value, especially in

developing countries due to lack of collection and/or recycling infrastructure or due to uncertain market

dynamics. 3R’s value proposition is to create a Corporate Standard and Project Standard that will engage

companies to measure their plastic footprint, while creating a market mechanism with credits (similar to

carbon market) to incentivize waste reduction.

Partnership activities include:

1) Creating the 3R standard for Project Accounting and supporting tools and methodologies

2) Developing a portfolio of six pilot projects in key regions to inform standard development and

establish initial proofs of concept

3) Establishing credit registry platform and transaction portal

4) Creating 3R Standard for Corporate Accounting, including defining achievement claims

5) Engaging leading corporates in using the 3R Standards and Crediting Mechanism

6) Managing the 3RI and integrate work with other circular economy efforts

It is anticipated that initial projects will be focused in Brazil, Colombia, Mexico, and Indonesia; future

pilots will likely be developed in Chile (not using P4G funds), Egypt, Kenya and Vietnam. The countries

3RI choose to initially pilot in will be selected based on criteria such as where partners have existing on-

the-ground capacity, where there is government buy-in and community support, and where there is

strong corporate demand for waste mitigation efforts to be undertaken. These pilots will lead to

recovery of 10,000 tons of waste from the environment and 6,750 tons of CO2 avoided. 3RI are also

interested in collaborating with other plastics-focused partnerships in the P4G network.

With P4G funding, by the end of Q3 2021, 3RI will be able to fully develop the Project Standard, a

portfolio of pilot projects, a credit registry and transaction portal, the Corporate Standard, and secure

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initial uptake of the crediting mechanism, which will start to drive significant increases in waste recovery

and recycling rates in key regions around the world.

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ENERGY EFFICIENCY ALLIANCE FOR INDUSTRY (E² ALLIANCE)

Primary SDG Addressed: 7 (Affordable and Clean Energy)

Partners: Institute for Sustainable Communities (ISC) (administrative partner), Energy Efficiency Services

Limited (EESL)

Countries of Impact: India, with replication activities in Vietnam, Bangladesh, Indonesia, Philippines

Aim: Demonstrate and scale a model to drive uptake of energy efficiency interventions, beginning with

industrial motor replacement in India and extending to other Asian markets

Overview:

The E2 Model draws together a variety of elements that address key barriers to uptake of energy

efficiency (EE) solutions. Focusing on the large industrial motor market in India, the model combines

demand aggregation, manufacturer engagement, access to finance and policy alignment to create a

positive value proposition for each category of player in this value chain. The E2 Alliance aims to

demonstrate the ROI across the value chain and to generate demand growth that will become self-

sustaining, bringing the efficient industrial motor to a tipping point. The Alliance proposes to scale this

proof of concept to other markets—likely Vietnam, Bangladesh, Indonesia and the Philippines—with

appropriate model adjustments.

Despite the environmental, technical and financial benefits of EE for industry, EE investments are not

occurring at scale due to insufficient knowledge about suitable interventions, high up-front costs,

barriers to accessing finance, and inadequate policy incentives. The E² Alliance proposes to demonstrate

and scale a game-changing model that will drive the adoption of energy efficiency (EE) interventions by

industry. The “E² Model” -- which features engagement of Energy Service Companies (ESCOs), financiers

and clean technology solution providers for demand aggregation, financing and technical services -- will

develop and deploy turnkey EE solutions that are easy for Small and Medium Enterprises (SMEs) to

adopt.


1) Scaling and demonstrating the “E² Model” in India, applying it to the market for IE3 motors,

through demand aggregation and supplier engagement

a. Unlocking and aggregating demand for IE3 motors

b. Engaging with clean technology suppliers to scale the model and to design a buy-back

pilot initiative, testing the feasibility of circularity

2) Strengthening enabling environment for E² model through access to finance and policy

incentives

a. Securing scalable finance for IE3 motor procurement

b. Advancing government policies that incentivize industry adoption of IE3 motors

3) Mobilizing dissemination of “E² Model” in Vietnam, Bangladesh, Indonesia and the Philippines.

a. Leveraging WRI platforms - the Clean Energy Investment Accelerator, the Building

Efficiency Accelerator, and the Green Power Market Development Group -- to showcase

the E2 Model as a workable and successful solution for operationalizing clean energy

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goals in Asia’s industrial sector, and to explore country policies and initiatives to expand

and accelerate deployment of EE investment.

b. Activating a network of regional leaders (corporations supplying clean technology

solutions, ESCOs, financial institutions, governments, and EE organizations) from the

outset of the project, enabling them to learn about the E2 Model as it is being scaled in

India

c. Securing commitment by energy service providers and financiers to explore next steps

for the replication and scaling of the E2 model in their respective countries.

With support from P4G, E² Alliance will apply the model to accelerate adoption of energy efficient IE3

motors in India, an EE intervention whose technical and financial viability was demonstrated during the

start-up phase. During the two-year demonstration of the model in India, industries will replace 50,000

motors, resulting in an average emissions reduction of 400-500,000 MT CO₂ per year. Simultaneously,

the partnership will mobilize dissemination of the model in other countries in the region, securing

stakeholder commitment to replicate and scale it in their respective countries to catalyze the EE market

in the region.

P4G funding is intended to prove the concept and generate demand; this funding stage bridges between

the concept and commercial appeal and requires a partner who can engage a broader network and fuel

growth toward sustainability. If the P4G funding phase catalyses demand, there is potential for high

leverage of P4G investment into significant social benefits.

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IDE-PLASTIC BANK PARTNERSHIP TO CREATE A SUSTAINABLE CIRCULAR ECONOMY FOR PLASTIC

WASTE IN VIETNAM

Primary SDG Addressed: SDG 12 (Responsible Consumption and Production (Circular Economy))

Partners: iDE (administrative partner), Plastic Bank

Countries of Impact: Vietnam

Aim: Establish a sustainable plastic waste management ecosystem in Da Nang, Vietnam

Overview:

iDE and Plastic Bank aim to establish a sustainable plastic waste management ecosystem in Da Nang,

Vietnam, to reduce ocean plastic pollution, improve the livelihoods of local actors, and catalyze greater

plastic reuse by global brands. The project will mobilize local plastic waste collectors who previously

worked informally, to exchange plastic for cash, goods and services, with transparent pricing and

payments via Plastic Bank’s blockchain app. Plastic Bank sells Social Plastic® — ethically recovered plastic

that fights ocean pollution and extreme poverty by transferring its value to the people that engage with

it — at a premium to organizations such as SC Johnson, Henkel AG, Shell, and others for reuse in their

products. These premiums ensure sustainability and growth for collection centers.

With a fast-growing economy, rapid urbanization and 95.5 million people, Vietnam faces numerous

environmental challenges. Vietnam is the fourth worst offender of plastic waste mismanagement,

discharging 1.83 million metric tons of plastic waste annually, of which only 5-10% is recycled. The rest

enters landfills, waterways, or is burnt. Over 24 months, iDE and Plastic Bank will incubate and scale a

circular economy for plastic waste in Da Nang, one of Vietnam’s largest cities and a major producer of

plastic waste, leveraging iDE’s experience building markets in Vietnam and Plastic Bank’s proven model

of monetizing plastic waste that has been scaled in Philippines, Indonesia, and Haiti to develop

sustainable plastic waste management ecosystems.


1) Collecting and recycling 750 tons of plastic into Social Plastic, monetizing waste that would

otherwise have been recycled using outdated polluting technology or dumped into landfills and

waterways

2) Creating 6 collection centers to improve livelihoods for 12 collection center Managers and 600

collectors who previously worked in informal waste collection. The project will gather waste that

is missed by state-owned services, and where possible, engage existing actors to run the

centers, or establish new ones if current ones are insufficient to manage the volume of plastic

waste. Center hours, locations, and appearance will be determined following a market

assessment Deep Dive.

3) Establishing transparent pricing for plastic waste and training collectors on more effective

collection to increase their monthly income by 30% over baseline. iDE and Plastic Bank will

provide collectors training, protective equipment, and predictable prices for their collections.

Collectors can also exchange plastic for non-monetary items like clean food, fresh water,

electricity, and cell phone minutes.

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4) Training collection center managers on sorting plastic to maximize its value and how to

compensate collectors. The monthly income collection center managers receive will be

determined based on the market assessment Deep Dive, the prevailing local wage, and volumes

collected.

The partnership will spend the first quarter completing necessary government registration, identifying

government partners, and conducting a Deep Dive to assess the market, inform likely local partnerships

and find compelling ways to engage plastic collectors. At the same time, the team will establish six

collection centers. In the second quarter, the team will recruit and train collection center managers,

establish partnerships with local institutions who will purchase plastic, and launch a campaign to engage

and train collectors. Plastic collection will begin in the third quarter.

P4G funds will be used to launch and scale operations in Da Nang. However, this model has the potential

to scale to other cities in Vietnam with similar waste management challenges and regulatory

environments, like Hai Phong, Can Tho, and Ho Chi Minh City (HCMC), leveraging lessons learned from

the P4G project. By securing additional grants and establishing new collaborations with government,

NGOs, and private sector actors in these markets, iDE and Plastic Bank would expect to establish a

similar number of collection centers and collect similar amounts of plastic waste in each city.

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PLUSPLUS (FORMERLY AGRICROWD)

Primary SDG Addressed: 2 (Food Security/Sustainable Agriculture)

Partners: Stichting Solidaridad Nederland (Solidaridad Europe)(administrative partner), Coöperatie ICCO

U.A., Hands-on B.V. (Lendahand), B.V (Truvalu)

Countries of Impact: Mexico, Colombia, Indonesia, Kenya, Zambia, Ghana

Aim: Achieve a high growth and efficient crowdfunding platform for agriculture SMEs in emerging

economies

Overview:

PlusPlus blends private and institutional investments to provide agri-food SMEs in developing countries

with low cost working capital that they struggle to find elsewhere, to support their growth and

expansion. Together the partners can create a multiplier effect and give a boost to the expansion of

many scalable agri-food SMEs, contributing to sustainable economic development and the fight against

hunger and poverty. PlusPlus is a unique partnership between two market-driven global NGO partners,

ICCO and Solidaridad, a hands-on emerging markets equity investor Truvalu, and one of the leading

impact investing platforms Lendahand.

PlusPlus is designed to scale agri-food related SMEs in developing countries that are considered too

large for micro-credit and too small for mainstream banks. PlusPlus provides a solution and creates

access to funding for this so-called “missing middle”, by linking them to a crowd of investors. While

many investors are active in financing agri-food SMEs, few of them actively use capital from private and

public investors mobilized by online crowdfunding to invest in businesses in developing countries. The

impact investing platform PlusPlus will fill this current gap.


1) Managing and operating PlusPlus with low management and operational cost and high customer

satisfaction, on track for break-even revenue target for 2023

2) Attracting € 12.5 million of investments by over 40,000 private investments through PlusPlus by

the end of 2021

3) Developing an investable pipeline that will finance at least 30 SMEs through PlusPlus by the end

of 2021

4) Further scaling and replicating PlusPlus through high-growth (30%+ yearly growth),

collaboration with at least 3 other NGOs and attracting catalyzing institutional investments by

mid-2020.

5) Documenting and sharing lessons learned on implementation, performance and impact

P4G will provide PlusPlus with an opportunity to accelerate the process to crowd in further investments,

in order to make the model commercially viable in 2023. P4G’s network will provide PlusPlus with an

enormous reach and marketing potential through its connections with institutional investors, events and

the various national platforms, giving a boost to activate private investors and even institutional

investors, and speed up the process of achieving PlusPlus’s target. Also, P4G’s existing projects

worldwide can help in building the required continuous pipeline.

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SUSTAINABLE SOURCING AT SCALE

Primary SDG Addressed: 2 (Food Security/Sustainable Agriculture)

Partners: IDH Sustainable Trade Initiative (administrative partner), RySS / ZBNF

Countries of Impact: India, building on learnings from Indonesia, Brazil, Vietnam

Aim: Scale up sustainable production of major agricultural commodities through the Verified Sourcing

Area (VSA) model in Andhra Pradesh (AP), India

Overview:

Sustainable Sourcing at Scale will see major retailers, brands and traders join forces with local

governments and producers, investing in large-scale land management programs to work on farmer

livelihoods and sustainable farming practices. In a continuous improvement model, the Partnership will

create a strong and credible brand for agricultural produce from the target regions, connecting them to

global markets. This type of partnership is unprecedented in India and would be one of the first globally

The overarching goal of the Sustainable Sourcing at Scale Partnership is to create impact at scale in

major production areas in India and beyond, by mainstreaming sustainable production and thereby

connecting producers to markets. It will link to successful VSA readiness pilots in Indonesia and Brazil, to

grow to scale in the Indian market. By connecting the VSA model to the Zero Budget Natural Farming

program, the Partnership will not only have a major leverage in India, but it will also be a leading

example for other governments already looking to replicate the ZBNF model.


1) Convening key stakeholders in the jurisdiction of the VSA and signing compacts

a. Create a detailed scoping and baseline activity in the selected VSA areas

b. Convene key stakeholders for implementation of the VSA- local Government, civil

society, village representation, self-help groups, district management, ZBNF etc.

c. Create a shared governance with shared targets between public and private sector

d. Sign Covenants detailing sustainability targets, linked to committed end buyers. Some of

the key private sector partners will be Jain Irrigation, Cargill, APPM, Patanjali Food &

Herbal Parks

2) Capacity building and creating credible verification of progress and achievements (branding)

a. Localize material and outreach methodology for AP

b. Develop and defining monitoring and verification tools;

c. Coordinate delivery and implementation of compact by the ZBNF program supported by

IDH

3) Attracting private sector investment in sustainable farming practices (increased investment)

a. Create a detailed need assessment to support effective market access in the VSA areas

b. Convene key stakeholders, government, private sector and PSU for access to improved

farming practices and input

c. Create a shared governance with shared targets between public and private sector

4) Creating direct sourcing links to markets (market pull)

a. Attract buyers and having them commit to improving sustainability in selected areas.

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b. Mobilize and leverage international networks of stakeholders engaged in sustainability

thinking.

VSA implementation will begin in two clusters (10-12 villages and 16,000 hectares). By engaging with the

government of Andhra Pradesh, the partnership will replicate the model district after district, turning

the state into a large scale VSA. This is aligned with the vision for the Chief Minister of the state and is

supported with policies and budgets. In addition, the partnership will add committed private sector

partners who are looking for a reliable large-scale sourcing area. The VSA will provide a variety of

produce that meet the export quality norms, especially focused on commodities where the opportunity

for local value addition exists – Chili, Cashew, Cotton, Turmeric & Coffee.

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AFRICA GREENCO Reapplicant—2018 Scale-Up Partnership


Partners: Africa GreenCo (administrative partner), GreenCo Power Services Limited, Industrial

Development Corporation of Zambia, ADB, GCF, AFD, RERA, European Commission, The Rockefeller

Foundation, InfraCo Africa

Countries of Impact: Kenya, Ethiopia, South Africa, Swaziland, DRC, Namibia, Zimbabwe, Zambia

Aim: Sustainably transform renewable energy markets in Africa by establishing an independently

managed, creditworthy intermediary offtaker and power services provider to sit between power

producers and offtakers

2018 Partnership Successes:

Africa GreenCo has secured formal board approval from Agence Française de Développement (AFD) for

the guarantee AFD will provide to GreenCo, has signed an MOU with the IDC and has received written

expressions of interest from two potential equity investors in GreenCo. The parallel processes of

stakeholder engagement and capital raising are proving longer than anticipated but are moving in a

positive direction.

Overview:

GreenCo is a new public–private partnership (PPP) business model that focuses on the development and

utilization of power pools for cheaper and easier scale up of renewable energy development across

Africa. GreenCo’s overarching goal is to operationalize and scale up a sustainable business model to

support regional electricity market integration, reduce renewable energy tariffs and relieve fiscal

pressure on governments while acting as a pathfinder for other market participants and other regions.

Unlike the current tools, the GreenCo model recognizes that an integrated and well-functioning cross-

border power system provides greater opportunities for the uptake of renewable energy options, by

ensuring that renewables are generated where the potential is highest and used where and when the

demand is highest.

In order for Africa to build the energy capacity it needs, SADC estimates the need for investments of

over US$800bn until 2040. A regional approach to power generation and supply could overcome

barriers to greater investment in RE, including the lack of credit-worthiness among utilities, and could

save an estimated US$40b in capital expenditure and US$10bn in consumer spending per year. While

barriers to investment in RE are many, key is the lack of creditworthiness of power purchasers. In as

much as offtake risk is a major problem in certain markets, GreenCo can add significant value. In the

case of default under a PSA, AG will be able to divert power to other buyers, either bilaterally or through

the regional competitive market, the Southern African Power Pool (SAPP).


1) Ensuring successful operationalization in Zambia

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2) Deepening engagement in GreenCo’s target countries for Phase 2 implementation in SADC (Zimbabwe, Namibia, Eswatini, DRC, South Africa), including stakeholder engagement and regulatory due diligence

3) Market assessment of the West African Power Pools (WAPP), and stakeholder outreach in the

East African Power Pool (EAPP) with a particular focus on Kenya and Ethiopia in view of the

ongoing work of various stakeholders to design and implement regional markets in these

regions

4) Designing and implementing a comprehensive development impact assessment framework

5) Developing innovative new services and products to support regional market development

including storage, green certification, the applicability of the GreenCo model to support rural

mini-grid development and potential use of distributed ledger technology

GreenCo plans to achieve financial close in December 2019 and commence operations in Zambia, but

several key conditions precedent to GreenCo’s operations are beyond Africa GreenCo’s direct control.

These include GreenCo securing (i) an operating license in Zambia which entitles it to sell electricity to

other customers (both domestic and cross-border) in case of incumbent offtaker default and (ii)

membership of SAPP. SAPP’s membership rules are under revision to reflect the changing landscape of

the power sector and the multiple roles played by both the incumbents and new market entrants.

Through regular dialogue, SAPP have assured Africa GreenCo that the new rules will be permissive of

service providers such as GreenCo but there is currently a backlog of applications which have been on

hold while these changes are implemented. This situation is exacerbated due to SAPP only convening

management committee and executive committee meetings, at which new members are approved,

twice per year, generally in March and October. There is a therefore a material risk that the timing of

financial close will slip beyond December 2019 and ongoing development costs for Q1 2020 have

therefore been included in the budget. Without additional funding support from P4G, Africa GreenCo

will be unable to cover its operating costs beyond December 2019. P4G funding is therefore critical to

the successful operationalization of the GreenCo business model.

With additional P4G funding, GreenCo will be able to take advantage of rapidly developing new markets.

In South Africa GreenCo has engaged with various participants in the South African Electricity Supply

Industry over the past 12 months. Energy transition in the face of South Africa’s current energy supply

challenges could provide opportunities for meaningful engagement regarding the GreenCo business

model. Improved infrastructure in West Africa will also create conditions enabling the GreenCo model to

be rapidly operationalized. Following initial discussions with ERERA and WAPP, they recognize the broad

benefits GreenCo could deliver in supporting the development of their market and improving the

bankability of projects in the region. They have requested that the GreenCo model be contextualized for

WAPP and GreenCo will complete a market assessment to support this shortly. In East Africa, GreenCo

will seek to engage with the regulator, the utility and the ministry of energy in Ethiopia and Kenya to

explain the benefits of the GreenCo model and garner support for its introduction in the EAPP market at

the appropriate juncture.

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CLEAN ENERGY INVESTMENT ACCELERATOR (CEIA) Reapplicant—2018 Scale-Up Partnership


Partners: National Renewable Energy Laboratory (administrative partner), Allotrope Partners, various in-

country commercial partners

Countries of Impact: Indonesia, Vietnam, Colombia

Aim: Bring together business, government and investors to build public-private clean energy

partnerships in emerging markets


In Colombia, CEIA demand aggregation models have already demonstrated 24% cost savings for buyer

companies compared to typical solar prices and have the potential to unlock billions of dollars in

investment as companies see greater certainty in tested and proven advanced energy models.

Corporate Power Purchase Agreements grew to USD 15 billion of global investments in 2018,

representing 5% of global solar and wind spending, and a pathway for tremendous scaling in emerging

markets.

In Vietnam, in addition to growing public-private dialogues, policy inputs, and other key activities, the

CEIA successfully supported Amata, a Thai-owned industrial park developer, to move forward with a 104

kW rooftop solar energy system for the office building of the Amata City Bien Hoa Industrial Park. As a

result of CEIA support throughout the bid evaluation process, Amata signed a ten year contract with a

qualified developer to power its office with cost-saving renewable energy.

In Indonesia, although activities have not yet been supported by P4G, throughout 2018 the CEIA built a

strong in-country team that has brought together a coalition of major commercial and industrial buyers,

like Nike, Unilever, and H&M, interested in pursuing advanced energy solutions. CEIA Indonesia

facilitated engagement between companies, key government stakeholders, and Indonesia’s main utility,

PLN, to open first-of-its-kind dialogues on opportunities to enable corporate renewable energy

purchasing in Indonesia.

Overview:

The CEIA brings advanced energy solutions in commercial and industrial sectors to unlock scaled market

transformation and sustainable development. The CEIA’s innovative model convenes leaders from the

public and private sectors in emerging markets with growing C&I demand and provides targeted

technical support to overcome major barriers preventing scaled RE deployment. CEIA focuses on three

pillars (purchasers, pipeline, and policy) to drive market transformation across the clean energy

ecosystem.

Both Colombia and Indonesia need additional advanced energy to meet C&I demand growth: in the case

of Colombia, to diversify its energy mix from hydropower; in the case of Indonesia, to avoid locking into

fossil fuel-based energy infrastructure. Southeast Asia alone will add 160 gigawatts of new coal capacity

by 2040. Without CEIA intervention, it is likely that enabling environments will be insufficient to support

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investment flows at sufficient speed and scale. CEIA has demonstrated a partnership model that can

unlock systems-level market transformation.


1) Paving the way for an innovative OFF-SITE advanced energy procurement model in Colombia to

provide opportunities for another major segment of Colombia’s business sector to meet its full

demand with low-emitting sources

2) Fostering replication of a tested and proven demand aggregation model that brings down

project costs for ON-SITE advanced energy in Colombia for a large segment of buyers; and

3) Amplifying private sector voices in Indonesia to reach key decision-makers and demonstrate

corporate demand for advanced energy market transformation

4) Building capacity of government, the utility, and local company representatives in Indonesia to

make targeted improvements to the enabling environment that will unlock viable advanced

energy procurement pathways and allow transactions to flow

5) Enabling regional and global replication of Vietnam, Colombia, and Indonesia experiences to

unlock clean economy solutions across other emerging markets by sharing lessons through

knowledge products and stakeholder engagement events that can inform opportunities for

other countries to advance energy and sustainable development goals

With additional P4G funding to fully resource the original 2018 P4G Scale-Up grant, CEIA will pursue

results over approximately a 20-month period to synchronize work with the original scale-up grant. CEIA

is a highly capable partner for P4G with an excellent track record of partnering practice, engaging in

emerging markets and delivering results, and partnering with organisations which are acknowledged

leaders in the relevant field. Drawing on its pioneering work developing ON-SITE and OFF-SITE

aggregated demand procurement models in Colombia and Indonesia, CEIA represents a major

opportunity for P4G to add value.

P4G can help CEIA enhance its engagement, both at in-country government-level on the policy front,

and at donor government-level on the fundraising front. Given its no-cost, grant-funded approach,

ongoing support from the international donor community will be critical to achieving CEIA’s long-term

goal. While it is not CEIA’s ambition to turn itself into a commercial entity, there may scope to explore

additional, non-grant-based revenue streams, which P4G could help to facilitate.

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SSEZ AFRICA Reapplicant—2018 Scale-Up Partnership

Primary SDG Addressed: 11 (Sustainable Cities and Communities)

Partners: Made in Africa Initiative (administrative partner), SYSTEMIQ, NIRAS, LADOL Free Zone

Countries of Impact: Ethiopia, Kenya, Nigeria

Aim: Create demonstration cases of Sustainable Special Economic Zones (SSEZs) as a model for

sustainable industrialization, by embedding SDG-aligned operating principles into Special Economic

Zones (SEZs), developing inclusive sectors, and enabling the infrastructure needed to support

sustainable firms


In Nigeria, the partnership has hit tenant and funding milestones under the first tranche of P4G funding;

evidencing traction with key corporate and finance stakeholders and demonstrating the viability of our

three-phased – commercial development, technical development and zone execution – SSEZ

development model.

In Kenya and Ethiopia, the partnership has developed a portfolio of high-potential and impactful zone

opportunities and cultivated potential sources of external matched funding; in line with the key

deliverables we agreed with P4G. Specifically, the partnership has identified two significant

opportunities to be proposed for direct P4G support, and an additional pipeline of three further zones

that would be unlocked by P4G’s funding support in this round.

Overview:

Building upon P4G’s support in the successful execution of the world’s first SSEZ in Nigeria and the

commercial development of two zones in Kenya and Ethiopia, this funding application will facilitate the

continued execution of all three zones, mobilizing tenants and funders to scale their impact, and create

a blueprint for sustainable industrialization.

SEZs, clusters and industrial parks have been identified as key drivers of development in various country

contexts, not least in Kenya and Ethiopia. Globally, there are approximately 5,000 SEZs and industrial

parks – most have been unsuccessful, either failing to attract investment, failing to stimulate growth and

community development outside their enclaves, and/or being focused on extractive industrials leading

to negative environmental outcomes. SSEZ will create a new paradigm of growth, mirroring Kenya and

Ethiopia’s (among others’) strategic development plans by placing SSEZs at their heart. The model fulfils

the theoretical aim of SEZs, putting development into practice by promoting infrastructure development

in a strategic cluster, attracting innovative businesses and private sector investment, and acting as a

lower-risk landing point for FDI.


Nigeria

1) Fundraising – Closing of the first tranche of investment into LADOL Free Zone (debt and equity)

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2) Tenant Acquisition – Phase 1 tenants (the ~three tenants with whom agreements in principle

reached in Phase 1) operational within the zone, with a further pipeline of 5 tenants secured

3) Infrastructure – Sustainable infrastructure roll out commenced

Ethiopia

1) Technical Development – For the zone identified and developed during first P4G funding cycle,

completion of a sustainable masterplan process; a core master plan allowing for infrastructure

and capex forecasting and a SSEZ MP development framework and platform for planning,

developing and operating of the identified zone; establishing zone level sustainable policy and

procedure mapping and enabling / attracting partnerships and stakeholders to develop and

finance state-of-the-art infrastructure

2) Fundraising – At least one anchor equity investor for the zone to have signed Intimation of

Interest ideally in process of closing funding. Debt funders to be at mature level of conversation

3) Tenants - At least three material tenants aligned to enter the zone, with agreements in principle

in place

Kenya

1) Technical Development – For the the zones identified and developed in Phase 1, completion of

a sustainable masterplan process; a core master plan allowing for infrastructure and capex

forecasting and a SSEZ MP development framework and platform for planning, developing and

operating of the identified zone; establishing zone level sustainable policy and procedure

mapping and enabling / attracting partnerships and stakeholders to develop and finance state-

of-the-art infrastructure

2) Fundraising – At least one anchor equity investor for the zone to have signed Intimation of

Interest ideally in process of closing funding. Debt funders to be at mature level of conversation

3) Tenants – At least three material tenants aligned to enter the zone, with agreements in principle

in place

Within these countries, these actions contribute to a projected:

• 15,000 jobs in Nigeria and 35,000 jobs across Kenya and Ethiopia,

• 140 ha of development in Nigeria, ~300 ha of development in Kenya and ~ 150 ha of

development in Ethiopia

• FDI targets of US$500m-1bn for Nigeria, US$500m-1bn for Kenya and US$100m-500m Ethiopia

• US$235m of infrastructure investment in Nigeria, ~US$200m of infrastructure investment in

Kenya and TBD for Ethiopia

• 8.5 MW of clean energy generation in Nigeria, >80-100 MW of clean energy generation in Kenya

and TBD for Ethiopia

Nigeria, Ethiopia and Kenya all have very different forms of government industrial engagement and

private sector development/vibrancy; working across these three economies will create range of models

that can inform and develop thinking elsewhere in the world.

The partnership addresses a clear market need and problem in Africa and beyond, offering an ambitious

value proposition aiming to become a blueprint for sustainable industrialization. It has demonstrated

results during the first phase of support from P4G and offers an ambitious program to scale up the

P4G Confidential 18

model. As a partnership, SSEZ Africa recognize the importance of moving toward commercial

sustainability. The partnership will do this by mobilizing a project development fund to support future

zone development opportunities, and have started to engage institutional investors, development

finance institutions, and private sector partners to do so.

P4G Confidential 19

APPENDIX 1 – EVALUATION CRITERIA

All evaluation criteria are related to the following five key characteristics of a P4G Partnership.

1. Relevance: Promotes market-based solutions to one or more of our five SDG sector areas 2. Innovation and Growth: Addresses barriers that must be overcome to accelerate

commercially viable means of accomplishing the SDGs 3. Impact: Contributes to systems change that will advance overall green economic growth

with commercially viable and replicable business models 4. Implementation: Has the capacity to succeed 5. Value-Add: Brings together innovative constellations of private sector, public sector, and

government organizations tackling global challenges through market-driven approaches.

Partnerships were evaluated and ranked on the following criteria:

1. Market Need: The extent to which the partnership is addressing a significant gap in the market

• To what extent has the partnership identified a target market?

• How clearly has the partnership described the key issues, problems or barriers that prevent a commercially viable solution aligned with the relevant SDGs from entering the marketplace?

2. Goals: The extent to which the goals are relevant and impactful

• How relevant are the goals and sub-goals to both the problem and the suggested solutions?

• How clear and consistent are the goals?

• To what extent will achieving the partnership’s goals lead to positive, measurable progress toward the relevant SDGs?

3. Effectiveness of the Model: The likelihood that the proposed model/approach can deliver a commercially viable solution aligned with the relevant SDGs and the strength of the strategy to grow and replicate

• To what extent is the model innovative while also having an approach that seems feasible? For financial instruments: how realistic and sound are the instruments and structures?

• How likely is the partnership’s model/approach to lower the market barriers that the partnership has identified?

• How likely will the identified model/approach deliver a commercially viable solution within the marketplace?

• How strong is the strategy and ability to grow, replicate, and scale?

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4. Work Plan and Implementation Strategy: The likelihood that the workplan will produce the identified goals

• How reasonable is the timeline for completing the activities and achieving the deliverables in the workplan?

• How likely are the activities, deliverables, and workplan to produce the identified goals?

5. Budget and Financial Plan: The level of sustainability of the partnership’s funding model

• How well is the budget aligned to the workplan and timeline?

• How reasonable is the budget for accomplishing the desired results?

• For pre-commercial ventures: how realistic is the plan to get to commercial operation, or to directly enable significant commercial investment?

• For commercial ventures: how realistic and viable are the revenue streams?

6. Partners’ Capability: The strength of the partners’ capacity to execute the proposed model/approach

• How well can the partners execute the model?

• What is the partners’ experience in implementing change in the relevant sector, market segment, and geography?

• Does the partnership’s structure and history/precedent indicate that they can function effectively as a collective and execute on plans?

7. Value Add of P4G:

• To what extent would P4G facilitation and funding help this partnership to achieve its goals?

8. Risk: (Note: partnerships that move to the finalist stage will be asked to submit a detailed risk analysis in the second phase of the application process. Risk analysis is not required in the first stage of the application process.) The thoroughness of the risks evaluation and the strength of the risk mitigation plan

• How thoroughly defined and comprehensive are the risks in the following areas: ✓ Human capital ✓ Technological ✓ Process ✓ Political ✓ Legal ✓ Economic

• Do the risk mitigation measures defined by the partnership provide reasonable

assurance that the relevant risks are manageable?

summary of 2019 p4g scale-up partnership finalists · 2/19/2008 · efficiency services limited...

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