The Energy and Environment Partnership Programme of ...vaasanseutu.fi/app/uploads/sites/7/2016/03/Fred-Eklund_KPMG-Oy-A… · fund and invites proposals from e.g. companies, NGOs

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Grants and Business Opportunities for Renewable Energy & Energy Efficiency ProjectsFred Eklund, Portfolio Manager


EEP S&EA in brief— The overall objective of the Programme is to

reduce poverty through inclusive and job creating green economy and improved energy access and security in the Southern and East Africa regions while mitigating global climate change

— The Programme was initiated in 2009 by the Ministry for Foreign Affairs of Finland (MFA), with co-funding from the UK’s Department for International Development (DFID) and the Austrian Development Agency (ADA)

— The initial phase of the Programme was completed in June 2013. The second phase ofthe Programme is currently midway

— Management and implementation hosted by KPMG ECO (EEP Coordination Office, Pretoria, South-Africa)

— The EEP Programme is currently also running in three other regions: Andean region in Latin America, Mekong region and Indonesia in Asia.


EEP S&EA funding— The Programme operate as a challenge

fund and invites proposals from e.g. companies, NGOs and research organisations working in the field of RE/EE

— The Programme is focused on projects in all fields of renewable energy, bridging the gap between a good idea and a bankable project by providing part-financing to project proposals

— The key is to have a sustainable business idea

— 205 projects have been selected for funding to date. A total funding of 51 million euros have been committed

— The total investment of the portfolio reaches over 160 million euro


EEP S&EA portfolio

EEP portfolio consists of 205 projects in 13 S&EA countries

South Africa – 35 projects

Botswana – 9 projects

Namibia – 13 projects

Lesotho – 2 projects

Swaziland – 3 projects

Zambia – 14 projectsSeychelles – 1 project

Tanzania – 35 projects

Burundi – 8 projects

Rwanda – 12 projects

Kenya – 41 projects

Uganda – 9 projects

Regional – 11 projects

Mozambique – 12 projects


EEP S&EA project sectors

EEP supports projects in various sectors. Solar PV and Solid biomass are currently the largest two sectors

Biofuels - liquidBiogas

Hydropower and Wave

Multi-energy and Hybrid

Solar PV

Solar thermal

Solid biomass and Cook stoves

Waste-to-Energy

Wind power Energy Efficiency


EEP Success stories – Solar PVMobisol – Smart High Quality Solar Solutions

— 35,000 households (30,000 Tanzania and 5,000 Rwanda)

— 3.5 MW solar capacity

— Saved over 15,500 tons/year of CO2 emissions

— Has received many awards ex.

- “Momentum for Change” Award by the United Nations Framework Convention on Climate Change

- PV Magazine Award for “Top Business Model 2015”

— The EEP grant supported the early developing stages of Mobisol.


EEP Success stories – Solar PVGigawatt Global - solar field in Rwanda

— 8.5 MW solar photovoltaic power in Rwanda

— Increased Rwanda's power generation capacity by approximately 8%.

— The EEP grant played a crucial role in the early stages of the development of the solar farm.

— Gigawatt Global received EEP for funding during the feasibility phase of the project.


EEP Success stories – Solid BiomassEco-fuel Africa - EEP S&EA “Project of the Year 2015”

— Works with local communities in Uganda to convert locally sourced farm and municipal waste into clean cooking fuel briquettes

— Has created over 5,800 jobs for the people at the base of the pyramid by creating income sources for farmers and micro-retailers

— Today they reach over 56,000 households on a daily basis and has enabled 20,000 kids to enroll and stay in school

— It brings an added social value to the local community by its decentralized approach that keeps the profits among local farmers, briquette producers, retailers and consumers


EEP Success stories – Cook stovesBURN - clean burning cook stoves

— BURN is manufacturing and distributes cook stoves that are produced in the first local, modern manufacturing facility for clean burning cook stoves in East Africa.

— In the month of August 2015, BURN succeeded to produce and sell a total of 10.000 cook stoves. In total they have already produced close to 140.000 cook stoves and changed the lives of 700.000 people, saving them over $15 million.

— Their intention is to sell 3.45 million cook stoves

— Gender equality is a fundamental development objective of the BURN concept, and is essentially contributing to enabling women and men to participate equally in society and in the economy.


EEP Success stories - BiogasBio2Watt - Industrial biogas producing 4.4 MW

— Bio2Watt received EEP for funding during the feasibility phase of the project.

— The first industrial biogas project in Bronkhorstspruit producing 4.4 MW from cattle and sheep manure and other wastes.

— Is now producing and selling renewable energy to BMW.


How to apply - Calls for ProposalsEEP S&EA is in the process of launching two new Calls for Proposals (CfP12 and 13), the first one focusing on early stage support for projects and the second one on market ready projects

Please follow EEP-website for further information and subscribe to our EEP Newsletter at www.eepafrica.org

What do we support?

CfP12 CfP13

Project stage EARLY STAGE support for the INTRODUCTION phase of projects

Grant size 100,000-300,000 euro

Minimum co-financing is 30 % of the total project cost

MARKET READY support for the GROWTH stage of projects

Grant size 100,000-1,000,000 euro

Co-financing share progressively 30-90 % of the total project cost

Activities Feasibility studies

Pilot projects

Demonstration projects

Scale up to commercial operation

Replication of commercially proven concepts to new markets (nationally or internationally)

Rejuvenation of existing renewable energy and energy efficiency generation


What constitutes a good application— EEP aims to reduce poverty through inclusive and job-creating

green economy and improved energy access and security in the Southern and East Africa regions while mitigating global climate change

— Specific attention will be given to:

- gender issues

- poverty reduction

- innovation

- difficult markets

— The project should:

- Have a good idea

- Have a strong business case

- Empower local people

- Show commitment

- Have a local partner

- Be realistic and responsible.


CfP12 – Early Stage WindowFeasibility Study

Analysis and evaluation of a proposed project to determine technological, commercial, social and environmental viability, as well as feasibility within the estimated cost and economic viability. The Feasibility Study may be a refinement of a pre-feasibility study and should present enough information for investors to finance the next stage of the project. Investors may typically be part of thefeasibility work to ensure smooth transition from the feasibility to a pilot or demonstration financing. The expected output from a feasibility project is a “bankable feasibility study” acceptable for financiers with all the necessary agreements in place e.g. permits and licenses, environmental impact assessment (EIA) approvals, access to land and other business specific requirements according to the laws of the country where the project is to be implemented. Optimal is further to reach feedstock supply agreements and powerpurchase agreements.

Pilot Project

Testing of an RE/EE product, service, and business or delivery model, including social and local appropriateness on a small scale, for the first time, or in a new market, in order to ensure the conditions and operational details regarding e.g. feasibility, time, cost, size and risks before large scale roll out or commercialization. Pilot projects should form part of an overall market development strategy. For a pilot project to be approved for an EEP grant, the project proposal should clearly indicate further steps envisaged towards larger roll out or commercialization after the piloting phase.

As opposed to a demonstration project, a pilot project does yet possess earlier proven evidence that a product/service or a technology works in the selected circumstances but is intended to test and develop new products, services, and/or business or delivery models so that the project can optimize the procedures and gather lessons learned for a roll out or a commercialization in the following phases of the project.

Demonstration project

A project has in the pilot phase gained experience that the tested product/service or a technology can be successfully implemented in the selected location for implementation. In the demonstration phase the project strives to establish evidence that a project, aproduct/service and business or delivery model is a viable concept in the chosen market context, such as the geographical or socio-economic area, and could be applied elsewhere in similar circumstances. This may show the performance of a product/service or a technology in actual conditions, or it may encourage introducing the product/services or technology in the target market. For a demonstration project to be approved for EEP grant, the project proposal should clearly indicate the specific context and describe further steps towards roll out or commercialization. The demonstration project proposal should also provide basis for a high probability that the product/service or a technology can be successfully implemented in the selected location for implementation, such asexperiences gained from other markets, or in test environments or through a pilot project.


CfP13 – Market Ready WindowScale up to Commercial operation

A project has proven evidence that a concept, a product/service or a technology and business or delivery model works, and there is a high probability of reaching commercial viability with the applied “bridging finance” from EEP. Evidence might have been gathered through a demonstration project but also in some cases from a pilot project which has proven to be a successful concept.

For the CFP13, the focus is on promising local private sector RE/EE project opportunities that are close to commercial maturity but need a limited amount of ‘bridging’ finance to enable sustainable business growth and or to obtain commercial operation. Applications should provide information on the maturity of the business or project and why EEP S&EA funding would be required e.g. by elaborating on the level of commercial maturity of the project or business, and the estimated commercial operation. The application must clearly demonstrate what the bridging finance is required for, why this funding has not been obtained or cannot be obtained from other sources, to what extent other sources of finance have been explored or used for the project, how and when would the business or project graduate to a level where it could obtain commercial funding etc.

Replication of commercially proven concepts to new markets

Technology advancements have resulted in a number of RE/EE products and solutions suitable for medium to large-scale commercial and industrial applications. Whereas these RE/EE solutions are tried and proven in developed countries or in some of the regional markets, there might still be relatively little practical experience with them in Southern and East African markets. Replication projects can help provide local knowledge and experience, prove the cost effectiveness of chosen technologies in generating and/or saving energy (compared to existing alternatives), help identifying and addressing market barriers (e.g. policy, regulatory, financing, capacity) and subsequently generate market demand which would in turn result in the creation of new business and employment opportunities.

Applicants need to demonstrate an understanding of the target market e.g. what is the current demand and future growth potential, and how the target market differs from those markets where the solutions have already proven successful. A replication can be conducted either nationally to a different geographical area within the existing country or by going international to another EEP partner country. EEP aims to reduce poverty through inclusive and job-creating green economy and improved energy access and security in the Southern and East Africa regions while mitigating global climate change


Follow us: www.eepafrica.org


Thank you!

Fred [email protected]

More Information: KPMG ECOPO Box 11265, Hatfield, 0028, South Africa

E-mail: [email protected]: +27 (71) 7426081

Documents

The Energy and Environment Partnership Programme of ...vaasanseutu.fi/app/uploads/sites/7/2016/03/Fred-Eklund_KPMG-Oy-A… · fund and invites proposals from e.g. companies, NGOs