Ministry of Electricity and Energy General Authority for Rural Electricity

1. Ministry of Electricity and Energy General Authority for Rural Electricity Rural Energy Access Project • OFF GRID RURAL ELECTRIFICATION Service Provider (SP) Functions Prepared By: A.M. Al-Ashwal Project Advisor

2. MEE GARE REAP Introduction OFF GRID • SP are interested to expand its services to energy service provision • promote the solar home system (SHS) technology, and • raise the awareness of the local community on the benefits of the technology

3. MEE GARE REAP OFF GRID • Service Providers include: • Microfinance Institutions, • CAC Bank, • Postal Service, • Accredited Local Dealers (ALD) • Bank of Hope for Microfinance • Alkoraimi Bank for Microfinance

4. Project suppliers Implementation Contract capital cost Contract Coordination REAP GARE PV SHS systems spare parts technical warranty assistance training National (capital cost - subsidy) iteration 1: Microfinance once the recollected amount reaches 50% of Foundation investment cost , NMF will Special Account initiate the procurement option 1: For Reinvestment process (subsidized price) (+ service charge) down payment monthly payment organize option 2: Option 1: credit Option 2: cash educate (subsidized price for end - user contract purchase contract establish target districts) installation installation end - users’ (unsubsidized price maintenance maintenance group outside target districts) spare parts supply spare parts supply training single payment warranty warranty information - users End Villagers Target Districts MEE GARE REAP OFF GRID Cash & Crid

5. Project Implementation capital cost Contract suppliers Contract SHS spare parts warranty REAP REAP MEE/GARE Contract SHS spare parts Escrow technical warranty Account capital cost assistance - subsidy training Local Service Solar Home Provider System organize (subsidized price) installation educate (+local charges) operation establish (+O&M service charge maintenance association monthly payment e lectricity training services information End Users MF Model

6. MEE GARE REAP Service Provider Functions would include: OFF GRID • SP offers micro-credit to villagers for the purchase of SHS. • With the micro-credit contract, SP installs the system at the premises of the end-user. • SP also organizes an end-users’ group to provide assistance and preventive maintenance, and act as focal point for complaints. • GARE & REAP Shall Provide Finance to procure SHS

7. MEE GARE REAP A. Preparation Aspects OFF GRID • Location and identification of local branches of microfinance institutions and Banks in each district • Convincing SP on the business opportunity, and invite them to visit the on-going demonstration projects. • Negotiate rural electrification participation of SP and discuss the terms and conditions of the project.

8. MEE GARE REAP B.Training Aspects OFF GRID • Training on installation, operation and maintenance • Vocational training for RE systems to produce PV electrical technicians. • Introduction/sensitisation workshops, dialogues with energy stakeholders. • Organize workshops and dialogues for SP with energy stakeholders.

9. MEE GARE REAP B. Training Aspects OFF GRID • Provide Special training on linking finance and delivery of energy services in provision of credit services for higher risk projects • Training SP women to work with women consumers • Study tours to countries that successfully implemented SHS projects

10. MEE GARE REAP B. Training Aspects OFF GRID • Training sessions on technology, funds available, financing structures and mechanisms, delivery of energy projects • Development of Yemen specific indicators for funding, monitoring and evaluating energy projects and programs.

11. MEE GARE REAP OFF GRID THANK YOU FOR YOUR ATTENTION