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GTIEA Project : An Overview

GTIEA Project : An Overview. Bhola Shrestha, PMO Director, GTIEA Rural Electrification Strategy in Africa: Lessons and Perspectives Mombasa Continental Resort, Mombasa 23-26,March, 2010. Structure of Presentation. Project objective Definition, schematic view of SHP Project Organisation

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GTIEA Project : An Overview

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  1. GTIEA Project : An Overview Bhola Shrestha, PMO Director, GTIEA Rural Electrification Strategy in Africa: Lessons and Perspectives Mombasa Continental Resort, Mombasa 23-26,March, 2010

  2. Structure of Presentation • Project objective • Definition, schematic view of SHP • Project Organisation • Key Outcomes and outputs of the project • Progress overview • Current portfolio of SHP projects, feed-in-tariff • Conclusions and way forward

  3. Project objective • Increased investments in small hydropower to reduce energy costs in the tea industry in Eastern/Southern Africa, improve reliability of supply, increase power supply for rural electrification and reduce Greenhouse Gas emissions

  4. Definition hydropower type based on Size Planning approach different for each

  5. Andhikhola Longitudinal Profile

  6. Project Organizational Structure UNEP/DGEF - AfDB Implementing Agencies EATTA - East African Tea Trade Association, Mombasa Project Proponent and Facilitator Executing Agency "Greening Tea in East Africa" Project Steering Committee (PSC) National Steering Committee (NSC) Project Management "Greening Tea in East Africa" Project Management Office (PMO) 4. Ministries of Energy/National Utilities/Regulators Countries: Burundi, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia 3. Civil Engineering and Electrical Engineering Sectors Countries: Burundi, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia 1. Tea Factories in East Africa Countries: Burundi, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia 2. Financial Institutions/Development Financial Institutions/International/ Regional/National Key Target Group/ Beneficiaries

  7. Key outcomes of the project • Outcome 1: Establishment of investment confidence in the small hydropower sector (investors, project developers and financing institutions) • Outcome 2: Enhancement of technical capacity in EATTA countries (in design and construction of small hydropower and fabricate associated equipment) • Outcome 3: Establishment of models for private-public participation in rural electrification through small hydropower • Outcome 4: Establishment of regulatory environment conducive to small hydropower Independent Power Producers investment in EATTA member countries • Outcome 5: Establishment of a stage for viable standard “Power Purchase Agreements” in EATTA countries for small hydropower developments

  8. Key project outputs • Ten full feasibility studies, including detailed design, completed for small hydropower demonstration projects in at least 4 EATTA countries. • Six small hydropower projects developed with commercial investment (15 million debt, 7 million equity) from the tea industry in at least 4 countries • Financing modalities facilitated for small hydropower. • At least one project with rural electrification component with private-public participation. • Policy case made for standard PPA’s attractive to investors, utilities, and end users for small hydropower in pilot project countries.

  9. Progress overview • Two feasibility study completed, of which, Gura SHP project (Kenya) in implementation stage, Nchwera (Uganda) committed, but not yet ready. • Six other feasibility study and detailed design in various stage of completion, of which, 4.5 MW Giciye (Rwanda) and Tagabi upgrading (0.85 MW) are preparing for implementation. • South Asia study tour and five Small Hydropower training workshops and one project finance workshop held to enhance local capacity • National Steering Committees in Kenya, Tanzania, Uganda and Rwanda formed and are hosted by energy ministries in each countries to support project implementation process . REA also member of NSCs which meet once every six month. • Rural electrification plans for four sites prepared and training on rural electrification planning carried out by PACEAA – project partner for RE

  10. Current Portfolio of SHP Projects

  11. Feed-in tariffs/Standard Power Purchase Agreement

  12. Conclusions and way forward • About 3 SHP projects in implementation process already and others to follow once feasibility and detailed design completed. • RE plans likely to be implemented in Kipchoria through EPK-Outgrowers’ Association, in Giciye, Rwanda through Utility and Ruo, Malawi by Lujeri Tea Company and with PACEAA facilitation. Challenge is to have other support organization in place after PACEAA project ends in August 2010. Most REA in the region have the subsidy policy for RE component • AFD and Danish fund in pipeline for concessionary financing through commercial banks for financing of renewable energy project in East Africa. • Grant support(e.g. EU Energy facility) may be required for project commercially not viable due to low tariff regime and for rural electrification component. • Policy and regulatory framework for IPPs and PPP in RE in place in Kenya, Tanzania and Uganda. • Tea companies very keen for investment due to rising cost of electricity.

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