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Project Development Programme (PDP)Sub-Saharan Africa

Introduction to the Project Development Programme

� Target and Background

� Steering and Cooperation

� Modules and Services

Impacts and Success Stories

� PDP East Africa (2009-2011)

Upcoming Activities

� PDP Sub-Saharan Africa

Agenda

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Introductionto the Project Development Programme (PDP)

Target Support of business partnerships between German and

local companies and the development of lighthouse

projects in Sub-Saharan Africa

Approach Strategic market development: regional, long-term and

holistic linkage of all instruments of the ‘renewables –

Made in Germany‘ initiative, focused on local industry

dynamics

Target Groups Project developers, manufacturers, distributors,

operators – in Germany and abroad

Technologies All renewable energy technologies, particularly

photovoltaic, biomass and biogas

Added Value GIZ professional expertise and networks with policy-

makers, private sector and associations

PDP: Targets and Approach

PDP Sub-Saharan Africa focuses on a choice of countries in the region

Implementation countries

� Ghana

� Kenya

� Mozambique

� Tanzania

Opportunity driven countries

� Angola

� Liberia

� Senegal

� Uganda

PDP: Countries of Action

PDP: Steering Structure

Sponsor BMWi(Federal Ministry of Economy

and Technology)

PDP Team Germany

Colleagues in GIZ country offices

Professional steering and regional coordination

Overall steering

Local implementation

PDP: Challenges

Challenges in Developing and Emerging Markets

� Challenging framework conditions (e.g. cost-covering electricity tariffs,

standardized PPA’s)

� Lack of market information (e.g. off-grid electrification projects, potential

clients)

� Limited expertise of local partners

� Lack of quality standards

� Local banking sector with only limited experience in financing renewables

� Limited financing instruments for project volumes <10 Mio €

� Few reference projects

PDP: Opportunities in emerging markets

DAILY NATION

THE NEW VISION

GET FiT Program has been officially launched! “By combining three instruments – a top up payment on the tariff, a guarantee mechanism and access to debt and equity funding – GET FiT constitutes an innovative approach to facilitating private investments in renewable energies.”

www.getfit-uganda.org

Electricity Company of Ghana signs PPA with private solar firmECG signed a US cents 29.5/kWh PPA for a 50 MW solar power plant.

Kenya €30-million forrenewable energy“France’s development bank, the Agence Francaise de Developpement, (AFD) has agreed to provide a €30-million line of credit to two Kenyan banks for lending to businesses that want to invest in renewable energy projects.

AFDECG

� New markets, new clients!!

� PDP helps to understand local market needs

PDP: Solutions adapted to local markets

PV-Freefield Neuhardenberg 145 MWp

with FiT

PV-Diesel Hybrid (200 kWp PV) with battery

storage and prepaid vending system

Source: juwi

PV-Wind-Diesel Hybrid (50 kWp PV & 50 kW Wind)

with battery storage and invoice vending system

Source: juwi

Solar Home System with leasing vending

system

Source: Mobisol

Module 1 - Information Dissemination and Contact Establishment

� Dissemination of specific market information in

Germany

� AHK-Business Trips:

participating companies find local partners,

customers and projects thus their entry time to

the local market is significantly reduced

� Business and Delegation Trips to Germany:

technology insights and first-hand information on

products and services

PDP: Services

German companies discuss

options for solar solutions with

hotel owners during a business

trip to Lamu Island / Kenya.

Investors of the Kenyan

agroindustry visit large-scale

biogas plants on a business trip

to Germany

Module 2 - Facilitation of Lighthouse Projects

� Seeing is believing: A well constructed project is

the best marketing in a “new” sector

� Innovative Products and Services:

“Simple” retailing is not enough, innovative

supply combined with local presence will trigger

demand (e.g. hardware, financial products, IT

solutions, business models, etc.)

� “Hands-on” trainings help to develop local

capacities for replicating projects

PDP: Services

“Hands-on” training for local

installers in Mombasa / Kenya

515kWp Photovoltaic rooftop in

Nairobi / Kenya constructed by a

German company with Kenyan

partner

Module 3 - Framework and Environment Management

� With the right references and legal framework in

place, markets will develop sustainably

PDP: Services

§ Incentive Instruments§ Grid Integration§ Net-Metering§ Power Wheeling…

Net-Metering pilot project: 60kWp

Photovoltaic ground-mounted in

Mombasa / Kenya constructed by

a Kenyan-German Joint Venture

Net-Metering analyses in Kenya

PDP: Current Thematic Focus

Mini-Grids

� Information on regulatory framework conditions, rural electrification planning and business opportunities

� Project identification and contact establishment with German system integrators

� Stakeholder management

PV-Diesel Hybrid-Systems

� Studies on technical and regulatory framework conditions for PV-Diesel Hybrids in PDP target countries

� Targeted identification of existing large diesel generators

� PDP information workshops, e.g. „PV-Hybrid-Systems on the Philippines“

� Advisory on bidding procedures

PDP: Current Thematic Focus

Bulk Consumers / Internal Consumption of „Green“ Electricity

� Policy advice on selling excess power to the grid (net-metering)

� Targeted identification of bulk consumers in PDP target countries

� Raising awareness at bulk consumers for renewable energy solutions

� Identification of suitable clients (e.g. industry, commercial, mining)

� Contact establishment between project developers and bulk consumers with high potential

� PDP information workshop on business opportunities (e.g. Kenya)

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Impacts and Success Storiesof the Project Development Programme (PDP)

Module 1 - Information Dissemination and Contact Establishment� >20 Business Guides and Target Market Analyses � 5 professional workshops, 10 presentations, >10 expert meetings� 3 combined business trips� 3 delegation trips to Germany

Module 2 - Lighthouse Projects� Identification and follow-up of >40 bidding offers and >10 projects� 2 training activities, implementation of 3 demo systems� Identification and facilitation to the installation of 2 pilot projects

Module 3 - Framework and Environment Management� Advisory on FiT, net-metering, solar thermal regulations, bidding

procedures� Support to associations and their cooperation in 5 countries

PDP East Africa: Activities

PDP East Africa: Activities

PDP East Africa: Results

Key Results

� 91 % of companies make new business contacts or have intensified existing

contacts

� 93 % of companies plan long-term engagement in East Africa

� 82 % of companies have generated additional revenue through PDP

Lessons Learnt

� Appearance as German delegation „made in Germany“ as benefit

� Establishment of local networks, access to decision makers

� PDP implementation period of 3 years allows for initiation of pilot projects

� GIZ contact persons in Germany and local markets is an asset

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Upcoming activitiesof the Project Development Programme (PDP)

PDP: Upcoming activities

Information Workshops in Germany:

� PV Info-WS Kenya: 25 July 2013

� PV Info-WS Mozambique & Tanzania: 23 October 2013

� PV Info-WS Ghana: 10 December 2013

Professional Workshops in Germany:

� “Direct Marketing of green electricity”: 22 October 2013

� “Mini-grids 2.0”: 11 December 2013

(Follow-Up Workshop http://www.giz.de/Themen/de/37278.htm)

PDP: Upcoming activities

AHK Business trips:

� Off-grid (PV & Wind) in Kenya (& East Africa): 27 Oct – 5 Nov 2013

� PV Mozambique: Q1 2014

� PV Ghana: Q1 2014

Exhibition and Conferences:

� Feira Internacional de Moçambique (FACIM) in Maputo, Mozambique:

26 Aug – 1 Sep 2013

� West African Clean Energy & Environment (WACEE) in Accra, Ghana:

12 – 14 Nov 2013

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Thank you for your attention!

Markus Schwaninger, Junior Project Managermarkus.schwaninger@giz.de

www.giz.de/projektentwicklungprogramm