Terminal Evaluation of the Sustainable Energy for All Project

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Evaluation Plan:
2019-2023, Lesotho
Evaluation Type:
Final Project
Planned End Date:
05/2022
Completion Date:
09/2022
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
50,000

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Title Terminal Evaluation of the Sustainable Energy for All Project
Atlas Project Number: 00082649
Evaluation Plan: 2019-2023, Lesotho
Evaluation Type: Final Project
Status: Completed
Completion Date: 09/2022
Planned End Date: 05/2022
Management Response: Yes
Focus Area:
  • 1. Poverty
  • 2. Energy
  • 3. Others
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.5.1 Solutions adopted to achieve universal access to clean, affordable and sustainable energy
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
  • 13.2 Integrate climate change measures into national policies, strategies and planning
  • 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services
Evaluation Budget(US $): 50,000
Source of Funding: Global Environment Facility
Evaluation Expenditure(US $): 45,000
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Nationality
Dinesh Aggarwal consultant INDIA
Taelo Letsela consultant
GEF Evaluation: Yes
GEF Project Title: Development of Cornerstone Public Policies and Institutional Capacities to Accelerate Sustainable Energy for All (SE4ALL)
Evaluation Type: Terminal Evaluation
Focal Area: Climate Change
Project Type: EA
GEF Phase: GEF-1
GEF Project ID: 00091460
PIMS Number: 5367
Key Stakeholders: GEF, UNDP, Ministry of Energy
Countries: LESOTHO
Lessons
Findings
Recommendations
1

Future efforts towards promotion of mini-grids may ensure promotion of other RE technologies (other than solar PV).

2

It is recommended that for the GEF projects in the focal area of climate change mitigation, the computation of global environmental benefits should be done keeping in mind the GEF methodology and in a conservative manner.

3

.During the project implementation, Bureau of Statistics, Lesotho collected data during a survey to establish sectoral energy consumption pattern. The report on the energy consumption by the households has already been published. It is recommended that during the remaining project implementation period the reports for the sectors for which data is available may be published.

4

The unspent funds are of the order of USD 225,000. It is recommended that this unspent grant funds for the Energy Centres may be used in either of the following two ways

  • New locations for mini-grids (one or two) may be identified and concession granted with the disbursement of the grant funds (@USD 90,000 per mini-grid as is being done presently)

The balance grant funds for the Energy Centres may be utilized for helping the concessioners of the Energy Centres to procure the inventory of the RE/EE products. Fifty percent of the procurement price may be given as a grant at the time of the procurement of the RE/EE products

5

With the regulations for mini-grids already in place, the future development projects may focus on the procedures to mainstream private sector investments for creation of mini-grids. As a further step towards this, the government and the regulators may explore the possibilities of going for Tariff based bidding process to allocate concessions to the private sector.

6

It is recommended that future design of the project of this nature consider a mobile model of the VEC, wherein a bigger EC is established at selected locations and the remote areas are served by mobile vans.

7

It is recommended that the regulations provide for different tariff determination methods for the electricity based on the time of the day concept. Charging different tariffs, based on the time of the day concept would be possible with the use of smart meters. The availability of electricity at a lesser price during the day would lead to the development of cottage-level enterprises and micro businesses. Such a provision would also ensure an increase in the load for the concessioner thereby improving the commercial viability of the operations

8

It is recommended that future projects of this nature may provide the grant to the concessioners at the time of procurement of the energy appliances. 

9

It is recommended that an amendment be carried out in the regulations to do away with the restriction to provide electricity connection to the consumers outside the geographical area of the concession.

Natural expansion of the mini-grid to nearby areas over the period may be allowed, if the expansion is not impacting the delivery of services within the assigned concession area

1. Recommendation:

Future efforts towards promotion of mini-grids may ensure promotion of other RE technologies (other than solar PV).

Management Response: [Added: 2022/10/11]

Agreed, potential for electricity generation from different renewable energy resources will be consider in the design and   undertaken during implementation of new projects.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support design of a follow-up project to promote access to clean energy generated from different forms of other renewables
[Added: 2022/10/11]
UNDP Programme Specialist 2023/04 Initiated
1.1 Organize a meeting with Department of Energy to discuss strategy to promote other renewable energy resources
[Added: 2022/10/11]
UNDP Programme Specialist Project Officer 2023/03 Not Initiated
2. Recommendation:

It is recommended that for the GEF projects in the focal area of climate change mitigation, the computation of global environmental benefits should be done keeping in mind the GEF methodology and in a conservative manner.

Management Response: [Added: 2022/10/11] [Last Updated: 2022/10/11]

The computation of global environmental benefits will be done as per e GEF methodology.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Compute GHG reduction as result of operationalization of mini-grids
[Added: 2022/10/11]
UNDP Programme Specialist Project Officer 2023/06 Not Initiated
3. Recommendation:

.During the project implementation, Bureau of Statistics, Lesotho collected data during a survey to establish sectoral energy consumption pattern. The report on the energy consumption by the households has already been published. It is recommended that during the remaining project implementation period the reports for the sectors for which data is available may be published.

Management Response: [Added: 2022/10/11]

Recommendation accepted and will be undertaken

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Identify data for publication: • Road shows report (UNDP website, Bureau of statistics website, Lesotho TV, GoL website) • S4ALL videos (exhibition, Mashai) • Lessons Learnt
[Added: 2022/10/11]
Project Officer, Project Director UNDP programme Specialist 2023/01 Not Initiated
4. Recommendation:

The unspent funds are of the order of USD 225,000. It is recommended that this unspent grant funds for the Energy Centres may be used in either of the following two ways

  • New locations for mini-grids (one or two) may be identified and concession granted with the disbursement of the grant funds (@USD 90,000 per mini-grid as is being done presently)

The balance grant funds for the Energy Centres may be utilized for helping the concessioners of the Energy Centres to procure the inventory of the RE/EE products. Fifty percent of the procurement price may be given as a grant at the time of the procurement of the RE/EE products

Management Response: [Added: 2022/10/11]

The recommendation is noted. Regarding minigrids, it is difficult to justify the implementation as no single minigrid out of 10 is operational now and it is highly likely that the 10 minigrids will not be fully operational by end of 2022.

Regarding the Village energy centres the funds are expected to be used for paying for KPIs (50% subsidy) and marketing support activities. However, it must be noted the recommendation can only be achieved if the project can secure no cost extension.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
5.1 Facilitate request for a no cost extension
[Added: 2022/10/11] [Last Updated: 2022/10/19]
UNDP and Department of Energy 2022/10 Completed No extension request approved for a period of 6 months History
5.2 Conduct verification of KPIs in order to facilitate remaining payments.
[Added: 2022/10/11] [Last Updated: 2022/10/19]
Project Officer 2022/10 Completed Verification undertaken of mini-grid KPI and all remaining KPI found to be completed. Verification report to be uploaded as soon as received from UNCDF. History
5. Recommendation:

With the regulations for mini-grids already in place, the future development projects may focus on the procedures to mainstream private sector investments for creation of mini-grids. As a further step towards this, the government and the regulators may explore the possibilities of going for Tariff based bidding process to allocate concessions to the private sector.

Management Response: [Added: 2022/10/11]

Agreed, however the Implementing Partner (IP), Ministry of Energy and Meteorology is likely to delay the implementation of the recommendation until the SE4ALL minigrids are operational and experience thereof could inform future exploration of possibilities.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integrate in Sustainability Plan
[Added: 2022/10/11] [Last Updated: 2022/10/19]
Project Officer 2023/03 Initiated History
6. Recommendation:

It is recommended that future design of the project of this nature consider a mobile model of the VEC, wherein a bigger EC is established at selected locations and the remote areas are served by mobile vans.

Management Response: [Added: 2022/10/11]

Agreed, this model will be considered in the design of future projects.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Include as part of Lesson Learnt and integrate in sustainability Plan
[Added: 2022/10/11] [Last Updated: 2022/10/19]
Project Officer 2023/03 Initiated History
7. Recommendation:

It is recommended that the regulations provide for different tariff determination methods for the electricity based on the time of the day concept. Charging different tariffs, based on the time of the day concept would be possible with the use of smart meters. The availability of electricity at a lesser price during the day would lead to the development of cottage-level enterprises and micro businesses. Such a provision would also ensure an increase in the load for the concessioner thereby improving the commercial viability of the operations

Management Response: [Added: 2022/10/11]

Agreed, the energy policy (2015-2025) calls for energy efficiency in electricity and further has strategy to introduce a metering system and tariff structure that will support energy efficiency and demand side management. The time of the day concept and different tariff determination is well embraced in the policy.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Disseminate the recommendation to Key energy stakeholders including PSC members.
[Added: 2022/10/11] [Last Updated: 2022/10/19]
Project Officer 2022/09 Completed Lessons learnt disseminated as part of September's Project Steering Committee Meeting History
8. Recommendation:

It is recommended that future projects of this nature may provide the grant to the concessioners at the time of procurement of the energy appliances. 

Management Response: [Added: 2022/10/11]

The recommendation is noted. Regarding the minigrids (MGs), this recommendation has already been implemented as $60 000.00 per minigrid was disbursed upon grant agreement signature. On the Village Energy Centres (VECs), $5 000.00 per VEC was disbursed upon grant agreement signature and the balance for both MGs and VECs grants was based on performance and aimed at de-risking funds mobilized by these energy developers. However, the recommendation would be considered in the design of future follow up performance-based grant incentive.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Share the recommendation with the Department of Energy for further discussion and consideration in the design of follow up projects/initiatives and strategy for private sector participation in renewable energy projects
[Added: 2022/10/11]
UNDP Programme Specialist and Project Officer 2023/01 Initiated
9. Recommendation:

It is recommended that an amendment be carried out in the regulations to do away with the restriction to provide electricity connection to the consumers outside the geographical area of the concession.

Natural expansion of the mini-grid to nearby areas over the period may be allowed, if the expansion is not impacting the delivery of services within the assigned concession area

Management Response: [Added: 2022/10/11]

The recommendation is noted. In the event that electrification beyond the boundaries of the concession area needs to be made, then application for revision of the concession area is recommended. This enables the planned expansion of the grid so that electrification takes place along the corridor of the extended grid.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Discuss the recommendation with Department of Energy
[Added: 2022/10/11] [Last Updated: 2022/10/19]
Department of Energy 2023/02 Initiated History

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