Ghana | May-16 | EnDev Benin - DEN PV and ProMaBiP

DEN PV and ProMaBiP – EnDev Benin Dr. Peter Förster

Team Leader EnDev Benin

[email protected]

www.endev.info

Energising Development au Bénin (EnDev) Supporting Energy Access in off-grid areas: the Role of Public, Private and Multi-lateral Investment

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1. OBJECTIVES OF DEN PV and PRO MABIP

2. IMPACT

3. APPROACH OF ENDEV BENIN

4. RESULTATS

5. The role of public, private and multi-lateral investment (to overcome constraints)

ENDEV PROGRAMME INTERVENTION COUNTRIES

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Bolivia

Honduras

Nicaragua

Peru

Benin

Burkina Faso

Liberia

Mali

Ghana

Senegal Burundi

Ethiopia

Kenya

Madagascar

Malawi

Mozambique

Rwanda

Tanzania

Uganda

Bangladesh

Cambodia

Indonesia

Nepal

Vietnam

Solar Biogas Cooking Energy Electrification/ densification

Hydro

25Countries 16 Africa, 5 Asia, 4 Latin America

Provide sustainable access to modern form of energy

for the populations in partner countries for 20 €/ per person

Components EnDev Benin

• Improved cook stoves 2009-2018

• Rural electrification 2009-2014 ´- grid extension

2014- 2016 - densification via Solar Home Systems

• Result based financing: Develop a market for quality PV products

2013-2018

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1. OBJECTIVE EnDev

OBJECTIVE OF DEN PV

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Rural Densification with Photovoltaic in Bénin (DEN PV),

08/2013 – 08/2016, 1,58 Mill € DGIS, NL and NORAID

Provide 3400 housholds, enterprises and social institutions in rural areas of north and central Benin with affordable, quality Solar Home Systems via enterprises that offers garantee and after sales service and by this develop the market for quality SHS in Benin

1. OBJECTIVE OF PRoMABiP

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Promotion du Marché des Biens Photovoltaïques au Bénin (ProMaBiP),

Result based Financing (RBF): Promotion of the Market for quality PV products

1/2013 – 8/2018, 3,06 Mill €, donor: DFID, UK

Contribute to the development of a market for good PV products in Benin by providing financial assistance to importation and sales of certified PV products

3 product lines are promoted :

- 400 000 picoPV lamps,

- 2500 PV street lamps

- 260 solar pumps (irrigation and drinking water)

Production of energy for the end user

Reduction of health and security risks

Improvement of the learning and working conditions during nights

Improvement of living conditions e.g. by providing accees to informations

Improving the competitiveness and productivety of the commercial sector

Reduction of costs for electricity e.g. for light

Reduction of CO2

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2. EXPECTED IMPACT

EnDEv approach of the project is well known

At least 4000 HH, social institutions and enterprises are registered in advance by EnDev to be interested to purchase a SHS

2 tenders were conducted, 12 enterprises registered under the

Programme as Partner Enterprises

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3. RESULTATS so far

5/2015 – 5/2016 :

Contrats ANADER (gov. Agency) signed

520 SHS installed, 600 further SHS are curently about to be imported, Effective monitoring system (incl. technical control) has been set up Costs for quality SHS has been reduced due to competition between

the partner enterprises (offers varie between 355000 cfa (540 €) and 522000 Fcfa (795 €))

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3. RESULTATS of DEN PV so far

16 contrats signed for pico PV

6 contrats signed for solar pumps

5 contracts signed for PV street lamps

Imported products of Partner Enterprises (PE) are exempted from tax and VAT

Partners (clients, product providers, credit providers) of our partner enterprises have more confidence in them

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3. Some Results of ProMaBiP 10/2014-5/2016

66 500 picoPV lamps were imported, 1000 street lamps, 20 solarpumps

two companies invested in a distribution network of 9 sub centers (so far) and are cooperating with the POST BENIN, that is selling their products in 110 offices countrywide.

Qualtiy picoPV lamps are now available in many rual areas of Benin

Price of pico PV lamps were reduced due to competion among the PEs

Credit providers are better informed and aware of the opportunities

Growing interest to engage in the PV sector: PAMIGA, UNACREP, initiative poste verte…)

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3. Some Results of ProMaBiP:

More than 90% of the benficairies are happy with the quality of the products

Households have multiples usages lampes e.g. loading mobile

1000 PV street lamps were imported but distortion of the market due to Government intervention

12 Date – Title of presentation

3. RESULTATS of ProMaBiP

5. Role of Public Investment

Bénin

Gov should apply and enforce tax exemption for quality PV products

Gov should provide improved access to remote areas, reduce transport costs by awoiding local tax every 20 km on the main roads

Improve the investment climate (for PV enterprises), Benin ranks 156 of « Doing Business » of 186 countries

Invest in setting up legal framework considering energy production e.g. feed-in tarif

Gov sthould set up quality standards for PV products and consider them in a legal framework

5. Role of Public Investment

Benin

25 mai 2016

Gov should set up and enforce environment standards and facilities eg recycling of batteries

Public should invest into education and training facilities for PV sector to improve its quality

Public sector should promote quality PV in the public purchase programmes in a transpartent and fair priced way and develop maintenance strategies

Public sector should back credit schemes of end-consumer in rural areas

15 Date – Title of presentation

4. ROLE OF PRIVATE INVESTEMENTS

PV enterprises should invest in the promotion of PV products - also in rural areas

PV enterprises must develop a professional promo strategy, such as provision of demo kits during the awareness compaigns

Private sector must invest in the development of their own competences to improve management skills, to be capable to assess their financial, and technical capacities

Private sector must invest in the elaboration of bankable business plans

16 Date – Title of presentation

Role of private Investment (2)

Private sector must invest in a distribution system

PV enterprise might consider specialisation or strategic alliances e.g. marketing, after sales services, importing etc

Banks and FI should invest into the evaluation and familiarisation of the PV sector and get aware of its potentials

Banks and FI provide fair priced credit – so far credit is only to high costs since the sector is unknown to them

17 Date – Title of presentation

4. Role of multilateral investments Awareness compaign about advantage and maintenance of quality PV

products

Invest in coordination among stakeholders

Setting up village comittees for energy

Provide market informations on the different companies and their offers also in remote areas

Strengthen the purchase power and credibility of the rural population

Provide credit schemes for installation of PV products and business development

Analyse along with the rural population the current cost for energy provision

Role of multilateral investments (2)

25 mai 2016

Develop payment schemes for the population to pay in multiple tranches par ex. in collaboration with MFI

Reduce the risks of betrays/cheating enterprise that just collect funds pretending they are part of an energy provision programm by information and awareness compaign (along with national & local Gov)

Offer training compaigns to develop business plans

Strengthen association of PV enterprises

Strengthen consumers associations and awareness of quality also of appliances, energy consumption, environment etc

Thank you for your attention.

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Households without access to the grid Departments in North and Central Benin: Zou, Collines, Borgou,

Alibori, Donga et Atacora

Large famille (>7 membres) Small Enterprises (productive use) and social institutions Ethnie/ Nomades and other depriviliged Gender

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3. APPROACH OF DEN PV (CRITERIA TO SELECT BENEFICIAIRES)

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3. APPROCHES DEN PV (QUELQUES CARATERISTIQUES NOTEES SUR LES LAMPES DU

SSD)