Terminal Evaluation for Grid Connected Roof Top Photovoltaic Systems In Seychelles

Report Cover Image
Evaluation Plan:
2012-2016, Seychelles
Evaluation Type:
Final Project
Planned End Date:
12/2016
Completion Date:
12/2016
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
20,000

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Download document Terms of Reference for PV TE.docx tor English 1033.46 KB Posted 249
Download document TE Report PV Seychelles JZ FINAL (2).docx report English 1330.66 KB Posted 395
Download document UNDP-GEF TE Management Response PV 2016 Final Amended.pdf related-document English 938.14 KB Posted 280
Title Terminal Evaluation for Grid Connected Roof Top Photovoltaic Systems In Seychelles
Atlas Project Number: 00065515
Evaluation Plan: 2012-2016, Seychelles
Evaluation Type: Final Project
Status: Completed
Completion Date: 12/2016
Planned End Date: 12/2016
Management Response: Yes
Focus Area:
  • 1. Environment & Sustainable Development
  • 2. Others
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Output 1.4. Scaled up action on climate change adaptation and mitigation across sectors which is funded and implemented
Evaluation Budget(US $): 20,000
Source of Funding: GEF
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Jiri Zeman Consultant jirkazeman@seznam.cz CZECH REPUBLIC
GEF Evaluation: Yes
GEF Project Title: Grid Connected Rooftop PV in Seychelles
Evaluation Type: Terminal Evaluation
Focal Area: Climate Change
Project Type: MSP
GEF Phase: GEF-4
GEF Project ID: 00081971
PIMS Number: 4331
Key Stakeholders: UNDP, MEECC, PCU, Energy Commission, Public Utilities Corporation
Countries: SEYCHELLES
Lessons
1.

The PV project has overpassed its objective and outcomes targets. 181 new PV systems have been installed with a combined installed capacity of 1.79 MW resulting in 2,499 tons of CO2eq.

The UNDP/GEF project served as a catalyst for the PV development and transformation of electricity market in Seychelles.

However, it is fair to recognize also the external factors and to give credit to other stakeholders that significantly facilitated PV development and the project success.

The timing is critical and this PV project had perfect timing. Should the PV project have been implemented a few years earlier of later, the project impact would have been less marked. The renewable energy policy target had already been adopted before the project launch, work on legislation updates had started, there were few off-grid and three small on-grid PV installations, and the first PV suppliers were in place at the project start, and PV technology costs have already decreased significantly.

The 2010 national energy policy target to cover 15% of energy demand by 2030 with renewables is a key driver for PV and renewable energy development in Seychelles. The Government of Seychelles, all state agencies and other parties work hard towards achieving this target. The renewable energy policy target, in a Seychelles context, is not just a political declaration, as it may be in some other countries, but it is a real life “hard fact” target that all stakeholders integrate seriously into their daily agenda and operation.

High fuel-oil based electricity tariffs, high also in international comparison, combined with the net-metering scheme create a real business opportunity with a short payback and a strong market incentive for PV installations – at least for high tariff customers.

SEC initiated and develops jointly with PUC two PV farms with capacity of 4 MW and 5 MW. The 4 MW lagoon PV is to be based on an IPP model, the 5 MW PV farm of Ile Romainville is to be owned and operated by the PUC. A 6 MW wind power farm, financed with an ADFD grant to the GOS and implemented by MASDAR with support of SEC and PUC, is owned and operated by PUC.

The GOS and a number of other international donors work parallel with the UNDP-GEF project and support PV/RE development in Seychelles: new financial soft credit schemes have been implemented, legislation and regulatory bylaws are under development, additional PV dissemination programs targeting low-income households and schools are under development and/or have been partly developed and implemented, 100% renewable energy plans for selected islands are under consideration.

Despite the fact that PV targets of the project have been reached, the PV project “just” laid down the foundations for and kicked-off the long-term process of PV development and electricity market transformation in Seychelles. By the termination of this UNDP-GEF project, these activities will not end. As indicated above, additional ongoing activities are being implemented, are under development, and/or are planned to be implemented.


Tag: Energy

Findings
1.

Due to faster than envisaged PV market uptake in Seychelles, and also due to a need to coordinate with other activities, namely those focusing on legislation development, the project was implemented in some details slightly differently than planned:

Except for the first PV installation on PUC facility and later on schools at La Digue and Praslin, the project did not organize public tenders for installation of PV demonstrations. Instead, the market driven PV installations supported with the PV rebate scheme were implemented from the beginning.

The PV project at PUC premises serves as a demonstration project where different PV technologies are tested and production data analyzed.

Due to fast installation of roof-top PV projects, the solar irradiation map was not deemed necessary for decentralized PV development (also because of the generally very good solar irradiation across Seychelles), and procurement and installation of pyranometers were delayed till mid-2016, and the solar irradiation map will not be developed by the end of the project. However, this had no negative impact on roof-top PV development. Instead of the solar irradiation map, data from real operation of distributed PV installations have been collected and processed and they can serve as an alternative to the solar irradiation map. The solar irradiation map will be developed and used primarily for siting of large PV farms.


2.

There is no legislation in place yet that would formalize terms and conditions for purchase of PV generated electricity into the PUC grid. This seemed to me, as an outsider, before I came for a TE mission to Seychelles, as a main shortcoming. However, I found that the existing net-metering scheme, although not formalized in a legislation, provides sufficient incentives and also guarantees for PV investors. The net-metering scheme has been approved by the government/SEC, and is effectively implemented by the PUC, I have not found any complaints from potential investors that this would create for them any additional risk. Although this practice is not recommended to be replicated in other countries, in Seychelles this seems to work sufficiently well. The reason for this is the local specific governance practice and business culture that is based on a widely shared confidence with governmental commitments. Neither the first in history change of political representation after the September 2016 national assembly elections is considered to create any threat to the confidence in the national renewable energy commitment.


3.

The SEC plans to adopt in 2017 legislation regulating terms and conditions of renewable power purchase to the grid, the details have not been decided yet. The PV project has supported development of a study on assessment of grid absorption capacity, grid code, feed-in tariff regulations, and model power purchase agreements in 2014 jointly with a parallel World Bank project. The grid absorption capacity is considered by the PUC to be a major concern that may negatively affect quality and reliability of power supply if decentralized power sources would be implemented on a large-scale, especially in a low-voltage grid. Thus, the country worked with JICA that supported development of an additional study that analyzed in detail the renewable energy grid absorption capacity in 2016. The SEC plans to develop the RE power support scheme regulation based on the findings of these two analytical reports, and based on the on-going discussions with the PUC and other stakeholders in 2017. Several options of the remuneration for power fed into the grid are considered. One of them is not based on customer specific tariff as it is in case of net-metering, but rather on avoided fuel costs – which are uniform for all customers regardless of their specific power tariff – combined with a price premium. The premium in such case would cover the difference between actual avoided fuel costs and a feed-in tariff required for a sufficient return on investment. The challenge of a RE support scheme will be securing sufficient funding for its financing as well as limiting the decentralized power production so that it would not overpass the grid absorption capacity so that quality of power supply from the grid would not be harmed.


4.

The PV project supported the capacity strengthening to develop, implement and operate PV technology by implementing PV trainings, awareness rising and information dissemination campaigns. Private PV installers are in general well-trained, partly overseas as well. However, there still is a need for further specifically targeted trainings and information dissemination activities. Some of these activities will continue as a follow-up to the PV project, such as the training of students at the SIT based on the developed curricula, other will continue as part of additional projects, such as the UNDP-GEF RE project, program with eco-schools, and PV kits program for school kids implemented by the S4S. The improved PV quality check translated into a SEC announcement that as of January 2017, only PV suppliers and installers registered and endorsed by SEC will be eligible for the PUC on-grid installations and for benefits from the financial support schemes, such as the PV rebate, VAT exemptions and SEEREP/SME loans. Until now the registration and endorsement with SEC was voluntary, and 10 PV suppliers were endorsed by SEC.


5.

The PV Rebate scheme was funded with a total of 1,262,980 USD evenly by UNDP-GEF project and GOS, of which 28% were disbursed for PV installation support by October 2016. This leaves the balance of 0.9 million USD available for support of additional PV installations in the future.

 


Recommendations
1

Proper project timing, and strong and effective country ownership and commitment are key prerequisites for successful project implementation. The PV project matched with this time-window opportunity when the project was launched after Seychelles had adopted RE policy and targets already, but practically no PV installations were in place yet. The timing of the project can serve as the best-case example, maximizing impact against investment.

2

High electricity tariffs combined with provisions allowing feed in of the generated power into the grid and affordable terms of financing create a strong market incentive for investors and do not require significant additional subsidies. However, PV requires 100% back-up, it does not offset utility infrastructure costs, and thus remaining electricity tariffs need to finance all utility infrastructure costs in case of a monopolistic market (or transmission/distribution costs only in case of a competitive market). PV technology makes the best economic sense in case of high marginal variable utility generation costs, i.e. high fuel costs, especially in the short/mid-term. The subsidy needed to cover the difference between avoided fuel marginal costs and PV generation costs in Seychelles can be financed either by tax payers from public budgets, or by electricity customers through utility electricity tariffs. The net-metering scheme in Seychelles with heavily cross-subsidized electricity tariffs provides a very strong incentive for high-tariff consumers to install PV at the cost of PUC/other customers, and at the same time there is no financial motivation to invest in PV for low-tariff customers.

3

Technical integration of PV into the PUC infrastructure is a more complex task than envisaged and budgeted for in the project document. Integration of PV technology impacts utilities’ capacity to control frequency and voltage in their grids. Capacity to control frequency in the grid within required limits requires sufficient fast (spinning) capacity at the utility power plant. PV generation depends on actual solar irradiation that can change quickly with clouds, and thus increases demand for frequency control capacity. The higher the PV market penetration, the greater the need for frequency control capacity. Within the scope of the PV project, with 1.79 MWp of PV installed so far, the frequency control is manageable with existing PUC technologies. However, problems with voltage controls in low-voltage networks may arise and should be addressed even with low PV penetration rate – especially in cases when a utility has difficulties with maintaining proper voltage in low-voltage networks. In such cases, projects designed to expand PV should be followed-up with an additional support on grid stability, as it is the case in Seychelles, which integrated grid strengthening into their first application for Green Climate Fund support.

4

Recommendation to MEECC and SEC

The PV Rebate scheme is eligible also for PV installations already in operation, there is no time limit, until when investors shall apply for the rebate. The terms of the PV rebate scheme should be adjusted to support new PV installations only. The ex-post support during PV operation should not be eligible, because in such case the direct impact on new PV installation is minimal. The PV rebate scheme should also be adjusted in the future to the actual terms of updated net-metering scheme, or its replacement, and target primarily investors that might have difficult access to debt financing, such as low/mid-income investors. If the new support scheme to replace net- metering scheme would prove to be attractive enough, the demand would be low, and the PV rebate funds would remain unused, an exit strategy should be developed, that might include extension of the PV rebate scheme also to other RE/EE technologies, or incorporation of the remaining funds under the PV rebate scheme with the new PV support scheme.

5

Recommendation to UNDP (replication project developers and sponsors)

When developing similar PV/RE projects in other countries, the timing and actual local development context, including effectiveness of country ownership, level of electricity tariffs, financial capacity of local utility/government to subsidize PV schemes, as well as financial capacity of local investors/households to invest, and other factors are decisive and should be properly taken into account, and the project design adjusted accordingly. Although this is a well-recognized fact, it cannot be overstated. A mere replication of a successful project in a different local context will not automatically generate the same results.

6

Recommendation to UNDP (replication project developers and sponsors)

PV/RE development projects should not focus only on strengthening PV/RE supply chain, and on development of a RE legislation supporting financial integration of the PV/RE into the local electricity market, but they need to address also effective technical integration of RE into power utility infrastructure. The technical integration becomes more important especially with higher RE power generation targets, and in case when utility infrastructure has not been fully modernized to current standards yet. The technical integration of RE is a bigger challenge primarily for smaller utilities that do not have sufficient financial and technical capacity to upgrade their infrastructure. Further technical and financial assistance to PUC is needed to improve PV absorption capacity both on a central power generation site (sufficient fast/spinning frequency control capacity), and especially in low-voltage distribution networks (voltage control within a standard voltage interval).

7

Recommendation to GOS (MEECC)

There is a continuous need for PV/RE related training and capacity strengthening at all levels, including government, utility, and PV installers since PV/RE is a new and fast growing branch. GOS should integrate targeted RE trainings and capacity strengthening activities into their other RE related projects and facilitate training integration also with other donors/projects.

8

Recommendation addressed to SEC, UNDP (MEECC, PUC)

Information developed by the PV project and published on the project web site should remain online even after the PV project termination, either at the UNDP sponsored sites (PCU) or governmental and partners’ web sites, such as MEECC, SEC and/or PUC web site. Potential PV investors might benefit also from simple but real-life examples of financial performance of PV installation and actual cash flow.

9

Recommendation to UNDP (replication project developers)

Log-frame indicators and targets should be defined for project objective, outcomes and outputs, not only formally, but de facto as well. Too detailed specification of project output indicators, which in fact refer rather to activity level indicators, is not suitable for monitoring of overall project results. More detailed project activity level indicators are defined in annual and quarterly work plans and monitored by project manager as a standard routine of a daily project management, as well as in quarterly and annual project reports.

10

Recommendation to GOS (SEC, MEECC), UNDP (replication project developers)

When designing the legally formalized PV/RE support scheme with remuneration for PV power purchase based on a combination of avoided fuel costs and a premium, the total amount of funding needed to finance the premium should be estimated as well as the financing sources identified and funding secured.

1. Recommendation:

Proper project timing, and strong and effective country ownership and commitment are key prerequisites for successful project implementation. The PV project matched with this time-window opportunity when the project was launched after Seychelles had adopted RE policy and targets already, but practically no PV installations were in place yet. The timing of the project can serve as the best-case example, maximizing impact against investment.

Management Response: [Added: 2016/12/15] [Last Updated: 2016/12/19]

The project indeed benefited from the onset from the huge appetite from the private sector to venture into the PV business, in effect the enabling environment for uptake of PV was already developing on its own and the project only had to support it, not create it. The demand for the technology was increasing, in particularly in the commercial sector and high consuming residential sector, due to high electricity tariffs. It could be said that the project was to some extent redundant, in that the PV market was expanding on its own, but the project had an important role in steering the process, information dissemination, making sure that financing was available such that a range of consumers could benefit rather than just the richer ones, and helping to ensure sustainability and upscaling.  The lesson learnt is that it is highly beneficial to time a project to kick in at a time of rising market interest – but also that flexibility is important for a project to adjust so as to maximize its impact as the market evolves.

Key Actions:

2. Recommendation:

High electricity tariffs combined with provisions allowing feed in of the generated power into the grid and affordable terms of financing create a strong market incentive for investors and do not require significant additional subsidies. However, PV requires 100% back-up, it does not offset utility infrastructure costs, and thus remaining electricity tariffs need to finance all utility infrastructure costs in case of a monopolistic market (or transmission/distribution costs only in case of a competitive market). PV technology makes the best economic sense in case of high marginal variable utility generation costs, i.e. high fuel costs, especially in the short/mid-term. The subsidy needed to cover the difference between avoided fuel marginal costs and PV generation costs in Seychelles can be financed either by tax payers from public budgets, or by electricity customers through utility electricity tariffs. The net-metering scheme in Seychelles with heavily cross-subsidized electricity tariffs provides a very strong incentive for high-tariff consumers to install PV at the cost of PUC/other customers, and at the same time there is no financial motivation to invest in PV for low-tariff customers.

Management Response: [Added: 2016/12/15] [Last Updated: 2016/12/19]

While it is evident that  those benefitting most from installing PV are the wealthy, high consuming households, the rebate scheme has allowed mid-consuming households also to invest. The current approval system does not allow for investment beyond household needs, with a view to becoming independent producers selling power to the grid, but this could change in the future as part of legislative reform. There is currently a plan to review the net-metering programme, since it does not provide a fair mechanism to all, and various Government schemes are in place or under development to promote uptake by poorer households. 

Concerning the differential between avoided fuel marginal costs and PV generation costs, there is a Government intent to develop new financial mechanisms such as a carbon tax, that would be used to offset the higher costs of power generated from PV and encourage IPP investment.

The lesson learnt is that there is a need to ensure PV investment is democratized, reaches all levels of society, and that mechanisms are developed to provide the financial subsidies needed to allow access by the poor to the benefits of renewable energy, and to offset perverse differentials that inhibit the uptake of PV as a commercial proposition. Seychelles is already aware of and implementing such an agenda.

Key Actions:

3. Recommendation:

Technical integration of PV into the PUC infrastructure is a more complex task than envisaged and budgeted for in the project document. Integration of PV technology impacts utilities’ capacity to control frequency and voltage in their grids. Capacity to control frequency in the grid within required limits requires sufficient fast (spinning) capacity at the utility power plant. PV generation depends on actual solar irradiation that can change quickly with clouds, and thus increases demand for frequency control capacity. The higher the PV market penetration, the greater the need for frequency control capacity. Within the scope of the PV project, with 1.79 MWp of PV installed so far, the frequency control is manageable with existing PUC technologies. However, problems with voltage controls in low-voltage networks may arise and should be addressed even with low PV penetration rate – especially in cases when a utility has difficulties with maintaining proper voltage in low-voltage networks. In such cases, projects designed to expand PV should be followed-up with an additional support on grid stability, as it is the case in Seychelles, which integrated grid strengthening into their first application for Green Climate Fund support.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

This is correctly identified as a major constrain in upscaling PV in Seychelles, and this is recognized in the roadmap for 100% renewables currently being developed.  There are a number of projects in the pipeline aiming specifically to address this constraint: PUC is already embarking on a grid upgrade and other initiatives to prepare for the development of two solar farms that will together inject a further 9 MW of renewable energy into the grid.  A GCF proposal being prepared by UNDP in support of MEECC is specifically addressing issues of grid stability and needs for interim battery storage as these farms come online.  A team from GreenWerks, Germany, has assisted MEECC and UNDP as co-applicants to the NAMA Facility for a grant which for most of 2017 will focus on feasibility studies for increasing grid resilience and improving energy storage capacity.  The Institute of Environmental Analytics (IEA) , in partnership with MEECC and UNDP, is implementing  a proof-of-concept project focusing on Seychelles that will identify the requirements for variability modeling using historic and current EO and ground data to estimate the potential variation in RE output on a seasonal or time-specific period, taking account of environmental conditions (e.g. wind speeds, cloud cover, solar insolation).  The lesson learnt is that indeed, as pointed out by the TE consultant, there are many technical issues associated with adoption of large-scale renewable energy within a grid and power utility that is not built for it – and these have to be considered as part of a renewables agenda. Seychelles is in the process of establishing itself as a demonstration country, perhaps an example of best practice, as to how a SIDS can switch to renewable energy.

Key Actions:

4. Recommendation:

Recommendation to MEECC and SEC

The PV Rebate scheme is eligible also for PV installations already in operation, there is no time limit, until when investors shall apply for the rebate. The terms of the PV rebate scheme should be adjusted to support new PV installations only. The ex-post support during PV operation should not be eligible, because in such case the direct impact on new PV installation is minimal. The PV rebate scheme should also be adjusted in the future to the actual terms of updated net-metering scheme, or its replacement, and target primarily investors that might have difficult access to debt financing, such as low/mid-income investors. If the new support scheme to replace net- metering scheme would prove to be attractive enough, the demand would be low, and the PV rebate funds would remain unused, an exit strategy should be developed, that might include extension of the PV rebate scheme also to other RE/EE technologies, or incorporation of the remaining funds under the PV rebate scheme with the new PV support scheme.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

The PV rebate scheme is reviewed on an annual basis by the SEC and the next review is schedule for April 2017. Feedback from the terminal evaluation is noted and will be taken into account during this review, as will suggestions from PV suppliers and PV owners. On close of project the rebate scheme remains under the management of SEC and DBS.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Review of PV rebate scheme
[Added: 2016/12/16] [Last Updated: 2017/09/04]
Seychelles Energy Commission (SEC) 2017/04 Completed History
Finalize decision regarding remaining fund, whether to continue with rebate or use fund for other financial mechanism
[Added: 2016/12/16] [Last Updated: 2017/09/04]
Seychelles Energy Commission 2017/04 Completed History
Discuss eligibility of rebate mechanism (include other sectors apart from residential and commercial)
[Added: 2016/12/16] [Last Updated: 2017/09/04]
Seychelles Energy Commission, Public Utilities Corporation, Other relevant ministries 2017/04 Completed History
5. Recommendation:

Recommendation to UNDP (replication project developers and sponsors)

When developing similar PV/RE projects in other countries, the timing and actual local development context, including effectiveness of country ownership, level of electricity tariffs, financial capacity of local utility/government to subsidize PV schemes, as well as financial capacity of local investors/households to invest, and other factors are decisive and should be properly taken into account, and the project design adjusted accordingly. Although this is a well-recognized fact, it cannot be overstated. A mere replication of a successful project in a different local context will not automatically generate the same results.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

The recommendation is addressed to the wider UNDP community.  The recommendation will be considered by the RTA and colleagues as part of the project development mechanism. UNDP is currently in process of developing a series of pipeline projects for climate financing in which this recommendation may be considered, notably the SIDS-STEP project for technical advice to a series of global GCF projects.

Key Actions:

6. Recommendation:

Recommendation to UNDP (replication project developers and sponsors)

PV/RE development projects should not focus only on strengthening PV/RE supply chain, and on development of a RE legislation supporting financial integration of the PV/RE into the local electricity market, but they need to address also effective technical integration of RE into power utility infrastructure. The technical integration becomes more important especially with higher RE power generation targets, and in case when utility infrastructure has not been fully modernized to current standards yet. The technical integration of RE is a bigger challenge primarily for smaller utilities that do not have sufficient financial and technical capacity to upgrade their infrastructure. Further technical and financial assistance to PUC is needed to improve PV absorption capacity both on a central power generation site (sufficient fast/spinning frequency control capacity), and especially in low-voltage distribution networks (voltage control within a standard voltage interval).

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

The recommendation could equally be applied to MEECC which is the lead Ministry for the development of climate finance projects, and overall responsible for management of PUC and delivery of the 100% renewables agenda.

MEECC is aware of the issues pointed out by the TE consultant, and PUC is in fact already working towards grid upgrade and introduction of battery storage to cope with the influx of renewable energy into the grid.  Addressing these issues also forms a key element of Seychelles’ first GCF proposal which is expected to be submitted in early 2017. A NAMA Facility proposal developed in 2016 by MEECC, with UNDP as co-applicant, also aims to support the process of enabling the grid, and PUC, for the switch to renewables.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
NAMA Facility proposal to include provision for further technical and financial assistance to PUC as indicated above
[Added: 2016/12/16]
MEECC, PUC,SEC No due date Completed Although this is done, the notice of approval is awaited; and in the event of a non-approval the required elements will be transferred to a request for GCF Readiness funding.
GCF proposal to include elements as recommended
[Added: 2016/12/16] [Last Updated: 2017/09/04]
MEECC, UNDP and other partners 2017/07 Completed History
7. Recommendation:

Recommendation to GOS (MEECC)

There is a continuous need for PV/RE related training and capacity strengthening at all levels, including government, utility, and PV installers since PV/RE is a new and fast growing branch. GOS should integrate targeted RE trainings and capacity strengthening activities into their other RE related projects and facilitate training integration also with other donors/projects.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

The recommendation could equally be applied to UNDP, which continues to supporting MEECC in capacity building initiatives related to CCM and climate finance project.

The project, prior to termination, is paying for one staff member of SEC (Principal Officer for Engineering and Technical Affairs) to take an online course “Certificate in competence in photovoltaic power”. This course covers the two Engineering Recommendations EREC G83 and G59 which SEC, PUC and the Grid Code Committee are considering adopting for Seychelles.

The project, with leverage funding from the Environmental Trust Fund (ETF), has purchased equipment for the Seychelles Institute of Technology (SIT) to support a PV training courses they are developing. A formal handover ceremony is being planned in January 2017 and SIT have agreed to conduct a certification course for PV installers. Additionally, PUC have agreed to assist SIT in sourcing instructors and will pay for a Training of Trainers course in early 2017

SIT and SEC have finalized an MoU under the GOS-UNDP-GEF RE project for strengthening of existing relationship between SIT and SEC and for the establishment a framework for communication, cooperation and coordination, with the aim to put in place a training platform to support the deployment of Renewable Energy and Resource Efficient Technologies. A signing ceremony is being planned for January 2017.

Substantial capacity building measures are included within NAMA Facility proposal submitted in 2016, and complementary capacity building, particularly for PUC, is included within the GCF proposal to be submitted in early 2017.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
SIT to conduct certification course for PV installers
[Added: 2016/12/16] [Last Updated: 2017/09/04]
SIT, SEC, PUC 2018/03 Overdue-Initiated History
SIT to incorporate PV in all SIT modules
[Added: 2016/12/16] [Last Updated: 2017/09/04]
SIT, SEC, PUC 2018/01 Overdue-Initiated History
SEC staff member completes “certificate in competence in photovoltaic power”.
[Added: 2016/12/16] [Last Updated: 2017/09/04]
SEC 2017/03 Completed History
Equipment handover to SIT and signing of MOU between SIT and PUC for training support
[Added: 2016/12/16] [Last Updated: 2017/09/04]
SEC, SIT, PUC 2017/03 Completed History
Initiation of capacity building under NAMA Facility and GCF proposals, if/when approved
[Added: 2016/12/16] [Last Updated: 2017/09/04]
MEECC, UNDP, PUC, SEC 2018/06 No Longer Applicable [Justification: Proposal submitted under NAMA was not approved]
History
8. Recommendation:

Recommendation addressed to SEC, UNDP (MEECC, PUC)

Information developed by the PV project and published on the project web site should remain online even after the PV project termination, either at the UNDP sponsored sites (PCU) or governmental and partners’ web sites, such as MEECC, SEC and/or PUC web site. Potential PV investors might benefit also from simple but real-life examples of financial performance of PV installation and actual cash flow.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

The domain name of the PV project website (www.pvproject.sc) was renewed in July 2016 and it will be valid for the next 2 years. The project, prior to termination, has also made an upfront payment to Maven for a website support contract of 12 months, with SEC agreeing to pay for any additional expenses that may arise during 2017. The website content will be updated by the data manager at SEC in conjunction with their own website (www.sec.sc). By the end of 2017, SEC and UNDP will decide if the website will be incorporated under one of the upcoming climate finance projects (i.e. NAMA Facility or GCF, or another) or continue to remain under SEC.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Continue with current administration of PV website (paid-up)
[Added: 2016/12/16]
SEC 2017/12 Overdue-Initiated
Migrate the website to SEC website or determine another means of continuing
[Added: 2016/12/16]
SEC 2017/12 Overdue-Initiated
9. Recommendation:

Recommendation to UNDP (replication project developers)

Log-frame indicators and targets should be defined for project objective, outcomes and outputs, not only formally, but de facto as well. Too detailed specification of project output indicators, which in fact refer rather to activity level indicators, is not suitable for monitoring of overall project results. More detailed project activity level indicators are defined in annual and quarterly work plans and monitored by project manager as a standard routine of a daily project management, as well as in quarterly and annual project reports.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

This recommendation relates to the design of project log frames and is duly noted by UNDP.  UNDP agrees that overly complex and detailed specification of output indicators need not be applied, and indeed this project has indicated the value of flexibility, or adaptive management, to respond to a rapidly evolving project environment. This recommendation is also coming out of other GEF Evaluations and will be taken into consideration for future project development.

Key Actions:

10. Recommendation:

Recommendation to GOS (SEC, MEECC), UNDP (replication project developers)

When designing the legally formalized PV/RE support scheme with remuneration for PV power purchase based on a combination of avoided fuel costs and a premium, the total amount of funding needed to finance the premium should be estimated as well as the financing sources identified and funding secured.

Management Response: [Added: 2016/12/16] [Last Updated: 2016/12/19]

Both the GCF and NAMA Facility proposals aim to work in close collaboration with SEC, PUC and MFTBE to conduct feasibility studies and develop policies and relevant legal frameworks for legally binding remuneration schemes that take into account avoided fuel costs and a premium, while ensuring the sustainability of PUC. As part of the GCF proposal, a full economic analysis is being undertaken to this end. Financial incentives, including means of ironing out fluctuations in fuel cost, will need to continue to form a part of PV projects (and of IPP agreements) as Government tries to achieve 100% renewables by 2035.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Economic analysis for PV investment and a future tariff structure completed as part of the GCF proposal
[Added: 2016/12/16] [Last Updated: 2017/09/04]
UNDP, PUC, SEC 2017/12 Overdue-Initiated Ongoing. was announced by Cabinet in July 2017 History
Drafting of pilot power purchase agreement (in connection with lagoon solar farm tendering process)
[Added: 2016/12/16] [Last Updated: 2017/09/04]
SEC, MEECC 2018/12 Overdue-Initiated History

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