De-risking Renewable Energy Investment

Report Cover Image
Evaluation Plan:
2016-2020, Kazakhstan
Evaluation Type:
Project
Planned End Date:
03/2021
Completion Date:
03/2021
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
32,000

Share

Document Type Language Size Status Downloads
Download document TOR_MTE.pdf tor English 1060.17 KB Posted 143
Download document MTE Report_ final.pdf report English 1477.69 KB Posted 147
Title De-risking Renewable Energy Investment
Atlas Project Number: 00097249
Evaluation Plan: 2016-2020, Kazakhstan
Evaluation Type: Project
Status: Completed
Completion Date: 03/2021
Planned End Date: 03/2021
Management Response: Yes
UNDP Signature Solution:
  • 1. Poverty
  • 2. Energy
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 2.5.1 Solutions developed, financed and applied at scale for energy efficiency and transformation to clean energy and zero-carbon development, for poverty eradication and structural transformation
SDG Goal
  • Goal 13. Take urgent action to combat climate change and its impacts
  • Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all
  • Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
SDG Target
  • 13.2 Integrate climate change measures into national policies, strategies and planning
  • 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services
  • 7.a By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
  • 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities
Evaluation Budget(US $): 32,000
Source of Funding: Project
Evaluation Expenditure(US $): 26,000
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Mark Chao International Consultant markchao@imt.org
GEF Evaluation: Yes
GEF Project Title: De-risking Renewable Energy Investment
Evaluation Type: Mid-term Review
Focal Area: Climate Change
Project Type: FSP
GEF Phase: GEF-5
GEF Project ID:
PIMS Number: 5490
Key Stakeholders:
Countries: KAZAKHSTAN
Lessons
Findings
Recommendations
1

Reconsider split project management arrangement and make the shift to a full-time PM.

2

Prepare a plan for improved and accelerated project implementation with the Country Support Team. Budget ambitiously in order to remedy disbursement delivery shortfalls.

3

Secure definitive documentation of delivered co-financing immediately, and again for the Terminal Evaluation

4

Revise the project Risk Log in light of the COVID-19 crisis, thoroughly revise proposed countermeasures, and make these countermeasures a central part of project strategy and activities.

5

Consider applying for a no-cost extension of the project period (up to 12 months, plus 6 months because of COVID-19) if more time is needed to adopt legislation (Component 2), implement financial mechanisms (Component 3), and spend project grant funds

6

Close the Project's activity on the site-specific auction mechanism Component 1, but ensure effective knowledge-sharing by preparing a lessons learned study and possibly a short lessons learned video, to be distributed via web-based channels, UNDP knowledge-sharing networks including via the global DREI initiative, and partner agencies.

7

Develop and implement measures to enhance political will for adoption of the legislative amendments, while also supporting building code revisions as an alternative or supplemental policy de-risking tool

8

Expand the Project's communications and outreach, including execution of a project-wide lessons-learned report and final conference

9

Immediately develop detailed market research (including investment risk analysis based on DREI methodology) on selected small-scale RE technologies, business models for their delivery and use, and potential numbers of implementers

10

Use the market research conducted under recommendation D.1 to establish priorities for promotion, as well as customization and delivery of incentives for selected technologies and business models

Management Response Documents
1. Recommendation:

Reconsider split project management arrangement and make the shift to a full-time PM.

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation and will immediately recruit a full-fledged Project Manager for the project.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Revise existing Terms of Reference of the Project Manager to manage only UNDP/GEF “Derisking Renewable Energy Investment”
[Added: 2021/03/28]
UNDP GEF Portfolio Manager 2021/03 Completed
2. Recommendation:

Prepare a plan for improved and accelerated project implementation with the Country Support Team. Budget ambitiously in order to remedy disbursement delivery shortfalls.

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation. and will as soon as possible develop a plan for accelerated delivery to remedy disbursement delivery shortfalls, and will be reflected in AWP 2021.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Preparing a plan for improved and accelerated project implementation
[Added: 2021/03/28]
Project Manager, Chief Technical Advisor, under the guidance of the GEF Portfolio Manager and RTA 2021/02 Completed
3. Recommendation:

Secure definitive documentation of delivered co-financing immediately, and again for the Terminal Evaluation

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation. The project will take immediate steps to file all co-financing letters initially committed at the project's design stage. The project will conduct a regular calculation and put a tracking mechanism in place to track expenditures under co-finance contributions.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project will track all cofinance commitments from project design stage and establish a system for regularly (bi-annually) updating expenditures
[Added: 2021/03/28] [Last Updated: 2021/07/30]
Project Manager, CTA ,Resources Monitoring and M&E Associate 2021/07 Completed The project has established a co-finance progress form that tracks the expenditures of those committed national partner organizations. The project collects those co-financial expenditures at each quarter level and reports to the national project director and PBM members in either annual or biannual frequencies. This, way the project maintains all those cofinance delivery information under control. History
4. Recommendation:

Revise the project Risk Log in light of the COVID-19 crisis, thoroughly revise proposed countermeasures, and make these countermeasures a central part of project strategy and activities.

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation. The project will keep the risk log updated, given the ubiquitous effect of COVID-19. The project team will assess the risks, level of exposure, and development of the coping strategy to implement the project activities successfully.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Revision of the project Risk Log in light of the COVID-19 crisis and keep risk log updated in Atlas regularly
[Added: 2021/03/28]
Project Manager Chief Technical Advisor Task Leaders Programme Associate 2021/12 Initiated
5. Recommendation:

Consider applying for a no-cost extension of the project period (up to 12 months, plus 6 months because of COVID-19) if more time is needed to adopt legislation (Component 2), implement financial mechanisms (Component 3), and spend project grant funds

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation. The extension will be requested, following established UNDP-GEF procedures.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Based on Accelerated Delivery Plan, work out exact timeframes and implementation strategy for adopting legislation, implementing financial mechanisms
[Added: 2021/03/28]
Project Manager,Chief Technical Advisor 2021/02 Completed
Based on above analysis, submit justification for a project extension request to BPPS NCE
[Added: 2021/03/28]
Project Manager,GEF Portfolio Manager 2021/03 Completed
6. Recommendation:

Close the Project's activity on the site-specific auction mechanism Component 1, but ensure effective knowledge-sharing by preparing a lessons learned study and possibly a short lessons learned video, to be distributed via web-based channels, UNDP knowledge-sharing networks including via the global DREI initiative, and partner agencies.

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Hire a consultant for conducting a lessons-learned study on site-specific auctions under Component 1
[Added: 2021/03/28] [Last Updated: 2021/07/30]
Project Manager Chief Technical Advisor 2021/07 Completed The analysis of RE auctions framework conducted by the international consultant in 2020. The analysis based on a practice of conducting RE auction globally, also Kazakhstan’s achievements in the field. Taking into account further improvement of RE’ auction architecture as well as learning curve of RE technologies cost, it is widely discussing to switch from site specific/technology specific auctions to technology neutral auction where all types of technologies (traditional, renewables) are competing. The recommendation on further improvement of the local auction architecture provided to the Ministry of Energy. History
Refine the project’s communication strategy with a comprehensive multi-year action plan, including development of communications products on sitespecific auctions (videos, etc.) for broad dissemination.
[Added: 2021/03/28]
Project Manager CO Communications Specialist 2021/02 Completed
7. Recommendation:

Develop and implement measures to enhance political will for adoption of the legislative amendments, while also supporting building code revisions as an alternative or supplemental policy de-risking tool

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation; The project will design measures and enhance interaction with key national stakeholders to facilitate better understanding, ownership and potical will for adoption of proposed amendments, particularly those concnerning subsidies. Following parliamentary elections in January, 2021 new Parliament has been formed - the project will work closely with new MPs, Ministry of Energy, national grid operators, and other stakeholders in pursuing legislative amendments in the RE sector.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Strengthen the workplan of the project for 2021 with support on law making process, additional research and advocacy, as well as workshops and consultations with key national stakeholders to raise awareness about anticipated policy and legislative amendments in the RE sector
[Added: 2021/03/28]
Project Manager Chief Technical Advisor Team Leaders 2021/02 Completed
8. Recommendation:

Expand the Project's communications and outreach, including execution of a project-wide lessons-learned report and final conference

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation. The project will update its communications and outreach strategy and action plan (see B1.2), and include preparation of a lessons-learned report and final conference in its final year of implementation

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Include preparation of a lessons-learned report and final conference into project’s final year of implementation
[Added: 2021/03/28]
Project Manager 2023/02 Initiated
9. Recommendation:

Immediately develop detailed market research (including investment risk analysis based on DREI methodology) on selected small-scale RE technologies, business models for their delivery and use, and potential numbers of implementers

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation The project will provide tailored support through a two-phased approach to the following technologies: heat pumps and solid biomass fuel. The project works on a broader strategy regarding market research and support tailoring in a holistic way. The outputs of technical contract to date (for instance, Development of Minimum Requirements for the Application of Renewable Energy Technologies in Civil Engineering Facilities, etc.) will be used and will inform the proposed market research.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Development of a detailed market research as a basis for tailoring support measures to a different types of small-scale RES
[Added: 2021/03/28]
Project Manager Chief Technical Advisor 2021/10 Initiated
10. Recommendation:

Use the market research conducted under recommendation D.1 to establish priorities for promotion, as well as customization and delivery of incentives for selected technologies and business models

Management Response: [Added: 2021/03/28]

UNDP agrees with this recommendation

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Based on findings under market research (D.1.1), establish priorities for promotion, customization and delivery of incentives for selected technologies and business models
[Added: 2021/03/28]
Project Manager Chief Technical Advisor 2021/12 Initiated

Latest Evaluations

Contact us

1 UN Plaza
DC1-20th Floor
New York, NY 10017
Tel. +1 646 781 4200
Fax. +1 646 781 4213
erc.support@undp.org