00098585 Advancing High Efficient Lighting Market (ADLIGHT) GEF Mid-Term Evaluation

Report Cover Image
Evaluation Plan:
2021-2025, Indonesia
Evaluation Type:
Mid Term Project
Planned End Date:
07/2022
Completion Date:
07/2022
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
30,000

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Title 00098585 Advancing High Efficient Lighting Market (ADLIGHT) GEF Mid-Term Evaluation
Atlas Project Number: 00098585
Evaluation Plan: 2021-2025, Indonesia
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 07/2022
Planned End Date: 07/2022
Management Response: Yes
Focus Area:
  • 1. Poverty
  • 2. Energy
  • 3. Others
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 2.1.1 Low emission and climate resilient objectives addressed in national, sub-national and sectoral development plans and policies to promote economic diversification and green growth
  • 2. 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
SDG Target
  • 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
  • 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services
Evaluation Budget(US $): 30,000
Source of Funding: GEF
Evaluation Expenditure(US $): 30,000
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Nationality
Roland Wong International MTR Consultant
Asep Suwarna National MTR Consultant
GEF Evaluation: Yes
GEF Project Title: 00098585 Advancing High Efficient Lighting Market (ADLIGHT)
Evaluation Type: Mid-term Review
Focal Area: Biodiversity
Project Type: FSP
GEF Phase: GEF-6
GEF Project ID: 00098585
PIMS Number: 5721
Key Stakeholders: Ministry of Energy and Mineral Resources (MEMR), The National Standardization Agency has established SNI standards for LED lamps; The Ministry of Development Plan (BAPPENAS); Ministry of Industry; Ministry of Trade; Ministry of Finance; ? Ministry of Environment of Forestry; Ministry of Public Works and Housing; State Procurement Agency; National Standardization Agency; and Municipal governments.
Countries: INDONESIA
Comments:

There are many stakeholders for the ADLIGHT Project with the main stakeholder being the Implementing Partner, MEMR, specifically DGNREEC who are responsible for responsible for the overall management and monitoring of Project implementation and results. To achieve the specific ADLIGHT Project objective of “increase the penetration of high-quality energy-efficient lighting technologies in Indonesia through the transformation of the national market”, the ADLIGHT Project needed to engage a wide range of stakeholders in Indonesia (as specified in the ProDoc) and summarized in the following Paras

Lessons
1.

As such, barriers that remain to fully achieving the ADLIGHT targets are:

  1. COVID-19 which has had the impact of reducing in-person contacts between ADLIGHT, MEMR and stakeholders;
  2. 11 months remaining to complete a critical number of LED pilot projects (buildings and streetlighting) to meet the targets for energy savings and GHG emission reductions. Delays that could jeopardize meeting this target by 17 May 2023 could be new COVID-19 outbreaks and other issues;
  3. a moderate risk that there is insufficient time for capacity development for the banking industry that would convince a critical number of banks to finance energy conservation projects by multi-year contracts, PPPs or ESCOs;
  4. a moderate risk that implementation of 2nd and 3rd market assessments and consumer surveys cannot be completed with remaining time to EOP;
  5. a moderate risk that there is insufficient time to prepare business transformation plans for 3 local manufacturers that will allow financial institutions to assess related loan requests;
  6. timely issuance of MEPS and labeling regulations;
  7. timely development of government procurement policy on local EEL products in public procurement;
  8. lower capacities and experience and limited financial resources of ESCOs; and
  9. some of the outcome level targets are challenging to achieve: cumulative number of lighting manufacturers who received technical assistance to upgrade production facilities, investment grade proposal for business transformation plans submitted by manufacturers and approved by banks, and implementation of pilot demonstrations in commercial building.

Tag: Sustainability UNDP management

Findings
1.

The ADLIGHT ProDoc was signed on 18 May 2020. Progress was made on:

  1. “Development of LED Lighting Development Roadmap for Indonesia” has been completed and disseminated to stakeholders as of November 2021;
  2. business transformation plans to produce high quality energy efficient lighting are in the process of being adopted and implemented by selected local lighting manufacturers;
  3. MEPS and energy labels regulation were finalized on 31 March 2022;
  4. round robin and domestic LED products tests by 6 LED national laboratories;
  5. use of 2 innovative financial models to enable accelerated penetration of LEDs;
  6. scoping and development of pilot LED projects in streetlighting and buildings with West Lombok, Palu Regency, Banjarmasin and Wonosobo having reached advanced stages of development. The ESCO business model was not used in any of these pilot projects;
  7. reporting gender balances in management, manufacturing and on pilot projects. However, gender training intensification is needed.

This has resulted in a critical number of pilot LED projects being developed towards meeting GHG emission reduction targets.

The ADLIGHT Project is proceeding at a satisfactory rate notwithstanding the delays caused by the COVID-19 pandemic. The satisfactory progress has been facilitated by strong ownership and leadership of the ADLIGHT Project and the Project positioning itself to deliver targeted GHG emission reductions. There are only 3 issues which can derail the Project in achieving its objective and outcomes:

  1. the moderate risk of not meeting GHG emission reduction target with current end-of-project (EOP) date due to unforeseen circumstances that includes unforeseen delays caused by future COVID-19 pandemic outbreaks for which the Project has no control ;
  2. issues related to delays in implementing LED pilot projects such as political will of mayors or supply delays; 
  3. low electricity prices that limits LED market penetration; and
  4. The extension of the ADLIGHT Project seems to be a logical resolution to these issues, to give sufficient time to completing Project activities especially the pilot LED projects to meet and even exceed the GHG emission target. Table A provides a summary of the achievements and the MTR ratings for the ADLIGHT Project.

Recommendations
1

Continue dialogue and training with financial sector.

2

Continual training is required to sustain the capacities of market surveillance personnel to identify a broad range of qualities of LEDs and other electronic devices such as service life and product materials.

3

There needs to be sustained resources available for dedicated training of electricians for the installation of lighting systems as well as for updating of best practices.

4

Assist the Ministry of Environment in seeking organizations for providing international best practices for managing Waste from Electrical and Electronic Equipment (WEEE) waste streams.

5

Focus on commercial banks for financing LED initiatives in commercial and industrial sectors where greater national energy savings and GHG emission reductions can be generated.

6

Request a 1-year extension to provide the PMU with an appropriate amount of time to reduce their risk of not achieving their incremental GHG emission reduction targets of 62,580 tCO2

7

Intensify gender training.

8

Prepare Project risk reports under the PARs.

1. Recommendation:

Continue dialogue and training with financial sector.

Management Response: [Added: 2022/07/14]

The continued dialogue and training with the financial sector is needed especially with the number of LED pilots that are in the pipeline.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Undertake series of FGD and training with financial sector and related stakeholders
[Added: 2022/07/14] [Last Updated: 2022/09/26]
Component 1 and 3 2022/12 Initiated Pilot demonstration in Q3 and Q4 2022 will be prioritized to streetlighting and residentials pilot projects first (commercial building will be carried in Q2 2023) to meet the target of Emission reduction. History
2. Recommendation:

Continual training is required to sustain the capacities of market surveillance personnel to identify a broad range of qualities of LEDs and other electronic devices such as service life and product materials.

Management Response: [Added: 2022/07/14]

This will require sustained resourcing of the training of market surveillance personnel to apply these skills to other LED products and other electronic devices and appliances.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Ensure that the continual training to sustain the capacities of market surveillance personnel to identify a broad range of qualities of LEDs and other electronic devices such as service life and product materials is planned and undertaken.
[Added: 2022/07/14] [Last Updated: 2022/10/24]
Component 2 2022/12 Initiated Ongoing, the series of activities will be carried out with the participation of line ministries and institutions related to a broad range of qualities of LEDs and other electronic devices such as service life and product materials. History
3. Recommendation:

There needs to be sustained resources available for dedicated training of electricians for the installation of lighting systems as well as for updating of best practices.

Management Response: [Added: 2022/07/14]

Training of electricians for the installation of lighting systems as well as for updating of best practices in Q3-2022

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Ensure training of electricians for the installation of lighting systems as well as for updating of best practices is planned and undertaken.
[Added: 2022/07/14] [Last Updated: 2022/09/26]
Component 3 2022/09 Completed - The ToR & Budget plan is completed. - The invitation letter to the Regional Government is signed by NPD. - The training is undertaken on Sept. 12th – 17th, 2022. There were 13 participants participated in the training from regional districts of Lombok Barat, Wonosobo, Palu, Donggala, and Banjarmasin. History
4. Recommendation:

Assist the Ministry of Environment in seeking organizations for providing international best practices for managing Waste from Electrical and Electronic Equipment (WEEE) waste streams.

Management Response: [Added: 2022/07/14]

ADLIGHT assists the Ministry of Environment in seeking organizations for providing international best practices for managing Waste from Electrical and Electronic Equipment (WEEE) waste streams.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
ADLIGHT already contracted a national expert on Waste from Electrical and Electronic Equipment (WEEE) in order to assist Ministry of Environment and Forestry for managing waste as well as to support mercury phase out program.
[Added: 2022/07/14] [Last Updated: 2022/09/26]
Component 2 2022/12 Initiated - The ToR & Budget plan is completed. - The training will be undertaken on Nov, 2022. History
5. Recommendation:

Focus on commercial banks for financing LED initiatives in commercial and industrial sectors where greater national energy savings and GHG emission reductions can be generated.

Management Response: [Added: 2022/07/14]

ADLIGHT focuses on commercial banks for financing LED initiatives not only in commercial and industrial sectors but also residential and public street lighting lead to achieve national energy savings program and GHG emission reductions.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Develop at least 4 financing modules that banks will use to attract investors or local governments to carry out credit mechanisms offered to retrofit from non-energy efficient lamps or old technology LEDs to more efficient ones.
[Added: 2022/07/14] [Last Updated: 2022/11/08]
Component 3 2022/12 Initiated History
6. Recommendation:

Request a 1-year extension to provide the PMU with an appropriate amount of time to reduce their risk of not achieving their incremental GHG emission reduction targets of 62,580 tCO2

Management Response: [Added: 2022/07/14]

The proposed no-cost extension will be addressed and asked for approval at the Project Board Meeting in August 2022 while the workplan 2023 will be proposed and approved at the Project Board Meeting in December 2022.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Make an update of the workplan 2023 of all components so that the proposed one-year no-cost extension can meet the framework results.
[Added: 2022/07/14] [Last Updated: 2022/11/08]
All components (particularly Component 3 for pilot demonstration in commercial buildings and residentials) 2022/12 Initiated History
7. Recommendation:

Intensify gender training.

Management Response: [Added: 2022/07/14]

Gender energy training is planned to be taken by gender expert in Q3-2022

Key Actions:

Key Action Responsible DueDate Status Comments Documents
ADLIGHT already contracted a national expert on gender issues in order to integrate and internalize gender issues into all activities.
[Added: 2022/07/14]
Component 2 2022/12 Initiated
Undertake gender energy training for policy makers and local LED industries
[Added: 2022/07/14]
Component 2 2022/12 Initiated
8. Recommendation:

Prepare Project risk reports under the PARs.

Management Response: [Added: 2022/07/14]

PAR has accommodated a separate section to update and review risks entries including activities for treatment(s). In addition to that, CO has also established standard minutes of meeting for Project Board. The standard minutes of meeting embraces risks.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Accommodation of risks report in the PAR.
[Added: 2022/07/14]
UNDP 2022/07 Completed PAR and minutes of PBM embrace the risk report.

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