Project Development Programme (PDP) Sub-Saharan Africa

Project Development Programme (PDP) Sub-Saharan Africa

Agenda 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

Introduction to the Project Development Programme (PDP)

PDP: Targets and Approach Target Approach Target Groups Technologies Added Value Support of business partnerships between German and local companies and the development of lighthouse projects in developing and emerging countries Strategic market development: regional, long-term and holistic linkage of all instruments of the renewables Made in Germany initiative, focused on local industry dynamics Project developers, manufacturers, distributors, operators in Germany and abroad All renewable energy technologies, particularly photovoltaic, biomass and biogas GIZ professional expertise and networks with policymakers, private sector and associations

PDP: Countries of Action 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: Steering Structure Sponsor BMWi (Federal Ministry of Economy and Technology) Overall steering PDP Team Germany Professional steering and regional coordination Colleagues in GIZ country offices 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 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 Kenya 30-million for renewable 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. AFD DAILY NATION Electricity Company of Ghana signs PPA with private solar firm ECG signed a US cents 29.5/kWh PPA for a 50 MW solar power plant. ECG

PDP: Solutions adapted to local markets New markets, new clients!! PDP helps to understand local market needs PV-Freefield Neuhardenberg 145 MW p with FiT Solar Home System with leasing vending system Source: Mobisol PV-Diesel Hybrid (200 kw p PV) with battery storage and prepaid vending system Source: juwi PV-Wind-Diesel Hybrid (50 kw p PV & 50 kw Wind) with battery storage and invoice vending system Source: juwi

PDP: Services 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 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

PDP: Services 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 515kWp Photovoltaic rooftop in Nairobi / Kenya constructed by a German company with Kenyan partner Hands-on training for local installers in Mombasa / Kenya

PDP: Services Module 3 - Framework and Environment Management With the right references and legal framework in place, markets will develop sustainably Net-Metering analyses in Kenya 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

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)

Impacts and Success Stories of the Project Development Programme (PDP)

PDP East Africa: Activities 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 support to the installation of 3 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: 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

Upcoming activities of 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

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): 26 Aug 1 Sep 2013 West African Clean Energy & Environment (WACEE): 12 14 Nov 2013

Thank you for your attention! Tobias Cossen Project Manager tobias.cossen@giz.de