Project Document - Deliverable Description
United Nations Development Programme
Country: Sudan
PROJECT DOCUMENT*
Project Title: Promoting Utility Scale Power Generation from
Wind Energy
UNDP Strategic Plan Primary Outcome (3.1): Countries have
strengthened institutions to progressively deliver universal access
to basic services. Align with latest UNDP Strategic Plan
UNDP Strategic Plan Secondary Outcome (1): Growth and
development are inclusive and sustainable,incorporating productive
capacities that create employment and livelihoods for the poor and
excluded
UNDAF/CPAP Outcome:
Outcome 2.2: Government and stakeholders have evidence-based
policies, strategic plans and mechanisms to ensure an enabling
environment for improved basic services; and people in Sudan, with
special emphasis on populations in need, have access to equitable
and sustainable quality basic services.
UNDAF/CPAP Outcome:
Outcome 2: Population vulnerable to environmental risks and
climate change become moreresilient and relevant institutions are
more effective in the management of natural resources
CPAP Output:
Output 2.2: Investment in green energy and access by needy
communities to sustainableenergy improved
Executing Entity/Implementing Partner: Ministry of Water
Resources & Electricity
Implementing Entity/Responsible Partners:
Ministry of Environment, Forestry & Natural Resources
General Directorate of Energy Affairs - Ministry of
Petroleum
Higher Council for Environment & Natural Resources
National Energy Research Centre Ministry of Sciences and
Communications
* For UNDP-supported, GEF-financed projects as this includes
GEF-specific requirements
Brief Description
The project aims to support removal of barriers to the adoption
of utility-scale wind energy tied to the national grid in Sudan.
Wind energy has been identified as a priority mitigation technology
by the Government of Sudan, and, although it is a mature technology
globally, it has not yet been adopted in Sudan. A systems approach
is proposed to integrate energy policy analysis within the broader
developmental objectives of Sudan. The project will also establish
regulatory frameworks for encouraging private investments in
grid-connected wind energy. Sudan currently has plans to develop
utility-scale wind farms in four regions: Dongola in the North,
Nyala in the South, the Red Sea coastal region and Khartoum.
The project includes four components: the implementation of an
initial wind farm; support to policy and regulatory development,
particularly to encourage private sector participation;
strengthening the support for wind technology in the country; and
support an adaptive learning and replication plan. Support to the
implementation of the first wind farm in Sudan, Dongola, will align
the wind farm with international best practices. It will also
create a case study for replication in later wind farms. The
Dongola wind farm will be implemented in five phases over the
lifetime of the UNDP-implemented, GEF-financed project. This
phasing will allow lessons-learned in it to be applied in the later
phases and, perhaps more importantly, will provide five years of
continuous wind farm construction-commissioning-operation that will
serve as a laboratory for training personnel and developing
associated tools and guidelines. The opportunity to have such
continuous exposure is very rare and will assist in transferring
knowledge and experience to neighbouring countries.
The project aims to help diversify Sudan's power sources and
reduce its reliance on fossil fuels, particularly for future
expansion and to reduce greenhouse gas (G H G). The project will
therefore help increase Sudan's energy security and support its
development. The project has been designed to play a catalytic role
in this transformational scaling-up of wind energy, and renewable
energies more broadly.
The project implementing partner is the Ministry of Water
Resources and Electricity. The project is expected to last 60
months.
Total resources required US$ 217,486,364
Total allocated resources:
GEFUS$ 3,536,364
Government (cash) US$ 213,250,000
Government (in-kind)US$ 450,000
UNDPUS$ 250,000
Programme Period: 2014-2019__
Atlas Award ID:00080570______
Project ID:00090222_
PIMS #4726__________
Start date: Nov. 1, 2014__
End Date Nove. 1, 2019_
Management ArrangementsNIM
PAC Meeting Date Sept. 2, 2014
Agreed by (Government):
Date/Month/Year
Agreed by (Executing Entity/Implementing Partner):
Date/Month/Year
Agreed by (UNDP):
Date/Month/Year
Table of Contents
List of Abbreviation & Acronyms4
List of Annexes5
1.Situation analysis6
1.1. Context and Global Significance6
1.2. Baseline, barriers and current government policy to address
the root causes and threats11
1.3. Institutional framework and stakeholder analysis15
2. Strategy21
2.1. Project Objectives, Outcomes, and Outputs21
2.2. Key indicators, risks and assumptions34
2.3. Expected benefits, design principles and strategic
considerations37
2.4. Project rationale and policy conformity37
2.5. Country ownership: country eligibility and country
drivenness38
2.6. Cost-effectiveness39
2.7. Sustainability40
2.8. Replicability40
3. Project Results Framework42
4. Total budget and workplan45
5. Management Arrangements51
6. Monitoring Framework and Evaluation53
7. Legal Context59
8. Annexes60
8.1 Risk Analysis60
8.2 Stakeholder involvement plan64
8.3 Terms of Reference for Project Personnel65
8.4 GHG Reduction Calculations69
8.5 Consideration of Bird Migration and Ecological Impacts70
8.6 Environmental and Social Safeguards73
8.7 Letters of Co-financing77
List of Abbreviations & Acronyms
COUNDP Country Office
CO2Carbon dioxide
CSPConcentrating Solar Power
EEEnergy Efficiency
EENSExpected Energy Not Supplied
GDPGross Domestic Product
GEFGlobal Environment Facility
GHGGreenhouse Gas
GTGas Turbine
HCENRHigher Council for Environment and Natural Resources
IEAInternational Energy Agency
IPPIndependent Power Producer
M&EMonitoring and Evaluation
MEMMinistry of Energy and Mining
MEFPDMinistry of Environment, Forestry and Physical
Development
MoMMinistry of Mining
MoPMinistry of Petroleum
MoSCMinistry of Science and Communications
MWREMinistry of Water Resources and Electricity
MRVMonitoring, Reporting and Verification
MWMegawatt
NAMANationally Appropriate Mitigation Action
NECNational Electricity Corporation
NERCNational Energy Research Centre
NGONon-Governmental Organisation
O&MOperations & Maintenance
PIRProject Implementation Review
PMUProject Management Unit
PPGProject Preparation Grant
PPPPublic Private Partnership
PBProject Board
PVPhotovoltaic
QPRQuarterly Progress Report
RCUUNDP Regional Coordination Unit
RERenewable Energy
RTAUNDP Region-Based Technical Advisor
SWHSolar water heater
TPRTripartite Review
TTRTerminal Tripartite Review
TWhTerawatt-hour
WBWorld Bank
UNDAFUnited Nations Development Assistance Framework
UNDPUnited Nations Development Programme
UNEPUnited Nations Environment Programme
UNFCCCUnited Nations Framework Convention on Climate Change
List of Annexes
8.1 Off-line Risk Log
8.2 GHG Calculations
8.3 Terms of Reference for Project Personnel
8.4 GHG Reductions Calculation
8.5 Consideration of Bird Migration and Ecological Impacts
8.6 Environmental and Social Safeguards
8.7 Letters of Co-financing
1. Situation analysis
1.1. Context and Global Significance
1. Like many developing countries, Sudan has a shortage of
electricity. Approximately 35% of the population has access to
electricity (MWRE-Renewable Energy Master Plan 2013). Even then, it
is not reliable and experiences regular power outages. Hydro-power
has the largest share of energy generation. The potential to expand
hydro-power to meet future needs is limited. Sudan does not have
significant oil or gas production and as a result will have to turn
to importation of fossil fuels to meet future energy needs. Climate
change threatens to affect rainfall patterns on which Sudan relies
for the water that generates its hydro-power. This further
emphasises the need for Sudan to diversify its energy sources. The
project seeks to address these problems by promoting the use of
wind energy in Sudan.
2. Sudan currently has a generation capacity of 2,723 MW of
power (ibid), has no wind generation capacity and no grid-connected
solar capacity. Publicly-owned utilities own all of the power
generation facilities, transmission and distribution lines in
Sudan. The Government owns 5,984 km of 220 kV transmission lines
and 965 km of 500 kV transmission lines. Approximately 35% of
Sudan's population has access to electricity[footnoteRef:1]. In
2012, the power consumption per capita was 233 kWh/
year.[footnoteRef:2] There are no independent power producers
(IPPs) in the country, though initiatives are underway to promote
private investment in power generation. This project seeks to
support those initiatives where they relate to wind
power.[footnoteRef:3] [1: UNESCO (2009), Electricity Access Rates.]
[2: Arab Union of Electricity (2012), Statistical Bulletin.] [3:
RCREEE (2013), Arab Future Energy Index.]
3. Electricity generation, consumption and losses for the period
between 2000 and 2010 are shown in Figure 1.
Figure 1: Electricity generated, consumed and distribution
losses 2000-2010[footnoteRef:4], Sudan [4: US EIA (2013), Sudan and
South Sudan Country Profile.]
4. In 2012, the power transmission losses were approximately 4%,
and distribution losses were approximately 18%, such that, in
total, roughly one-fifth to one-quarter of the electricity
generated is lost in transmission and distribution.[footnoteRef:5]
As a result, Sudan must generate 25% to 33% (MWRE 2013 Long Term
Power System Plan) more power than is consumed to overcome the
transmission and distribution losses, and, in the process, emit
associated greenhouse gases. [5: Arab Union of Electricity (2012),
Statistical Bulletin.]
5. Forty-four percent of Sudan's electricity is generated from
fossil fuels. The principal fossil fuels currently used for Sudans
power generation are heavy and light fuel oils, with shares of 61%
and 39% respectively of the fossil fuel used for power generation
in Sudan.[footnoteRef:6] Hydro-power plants represent 56% of
Sudan's installed power generation capacity, more than any other
technology.[footnoteRef:7] Figure 2 shows the installed generation
capacity in Sudan by technology. To meet the Government's target of
75-80% electrification by 2031, the Government plans to install
12,000 MW of additional generation capacity by 2031. This is to
include 1,582 MW of renewable energy (other than large-scale
hydro-power), with approximately 650 MW of wind energy.
[footnoteRef:8] [6: Arab Union of Electricity (2012), Statistical
Bulletin.] [7: Government of Sudan (2013), Second National
Communication to the UNFCCC.] [8: Lahmeyer International (2013),
Long and Medium Term Power System Plans of Sudan.]
Figure 2: Installed power capacity in Sudan[footnoteRef:9] [9:
Arab Union of Electricity (2012), Statistical Bulletin.]
6. The major hydro-power installations in Sudan are: Roseires,
Sinnar, Jebel Aulia, Khashm el-Girba and Merowe. The most recent,
Merowe, commissioned in 2009, has a capacity of 1,250 MW and
represents 82% of the total hydropower capacity and 46% of the
country's overall generation capacity.[footnoteRef:10] The total
amount of hydro-power generated in 2012 was 5,365
GWh[footnoteRef:11]. [10: US EIA (2013), Sudan and South Sudan
Country Profile.] [11: Arab Union of Electricity (2012),
Statistical Bulletin.]
7. The total technically feasible potential for hydro-electric
power generation is 4,920 MW (or 24,132GWh/year)[footnoteRef:12],
implying that, in the long-term, the bulk of expansion in
generation capacity will come from sources other than hydro.
Sudan's long-term development plan observes that 8,675MW of
additional thermal power plants will be needed by
2030.[footnoteRef:13] The technologies for thermal electricity
generation have been identified as combined cycle gas turbines
(CCGTs), low-sulphur diesel (LSD) generators, and coal-fired power
plants. While these plants will provide much-needed electricity,
they will only exacerbate the countrys energy security problems and
lead to rising energy-related greenhouse gas emissions. [12:
National Electricity Corporation (2004), NEC Medium-Term
Development Plan: 2005-2010.] [13: National Electricity Corporation
(2006), NEC Long-term Power System Planning Study.]
Figure 3: Cumulative installed renewable energy capacity by
type, 2014 - 2031[footnoteRef:14] [14: Lahmeyer International
(2013), Long and Medium Term Power System Plans of Sudan.]
8. Sudans medium-term development plan echoes the trend towards
thermal power generation. In June 2011, MWRE released its Medium
Term (2012-2016) Power System Development Plan. It emphasizes
least-cost energy solutions towards achieving the Government of
Sudan's electricity access targets. These targets and objectives
include, among others: (i) an increase in the available generation
capacity from 2,232 MW in 2011 (with 2,532 MW installed capacity)
to 4,161 MW (with 5,180 MW installed capacity), (ii) increasing the
electrification rate from 27% to 45% by 2016 (rising to 75-80% by
2031), (iii) raising per capita consumption from 233 kWh to 572
kWh, and (iv) extension of the national grid from 6,246 km to 9,100
km. The Medium Term Power System Development Plan also targets the
addition of 551 MW of renewable electricity to the national mix
over the medium-to-long term.
9. The Government of Sudan has made considerable steps towards
opening up major public service sectors to private investment,
including the power sector, to help serve its population of 37
million.[footnoteRef:15] It has already put in place incentives to
encourage the participation of Independent Power Producers (IPPs)
in the power sector. Sudan's Investment Encouragement Act, first
passed in 1999 and later updated in 2003, 2007 and 2013 identifies
the power sector as a major target for investment. It specifies
power projects, and especially renewable energy power projects, as
having strategic importance. As such, they are eligible for
incentives such as exemption from import duties and customs. Their
profits are also exempt from corporate income taxes for a
decade.[footnoteRef:16] Sudan's power sector remains
Government-owned but has been restructured to reflect a
private-sector structure. Independent companies have been
established with responsibilities for power generation,
transmission and distribution, including a single company that owns
and operates the Merowe Dam. This structure serves to further
establish the framework for private sector participation. [15:
Central Bureau of Statistics, Sudan (2014)] [16: RCREEE (2013),
Arab Future Energy Index.]
10. The electricity tariffs to consumers in Sudan, residential
and industrial, are approximately 8.2-8.3 US
cents/kWh[footnoteRef:17], whereas the cost of generation from wind
is expected to be in the range of 9.5-13 UScents/kWh, based on a
discount rate of 10%.[footnoteRef:18] Sudan's weighted average fuel
cost for thermal power is approximately 11 US
cents/kWh[footnoteRef:19]. At a discount rate of 10%, the cost of
generation from fossil fuels in Sudan is 11-14 US cents/kWh,
depending on the source of fuel (LNG, NG).[footnoteRef:20] Thus,
the generation cost of wind energy from the best locations in Sudan
is competitive with the fuel saving cost from fossil fuel, meaning
that the Government realizes savings by operating a wind power
plant compared with the average fossil fuel plant (other than
coal). Wind energy presents other advantages, such as diversifying
Sudan's energy sources and reducing the countrys reliance on
imported fossil fuels. Wind also offers the advantage of not being
subject to fluctuations in the global price of gas and oil. [17:
RCREEE (2013), Arab Future Energy Index. ] [18: Lahmayer
International (2011), Feasibility Study for 100 MW Dongola Wind
Farm.] [19: Lahmayer International (2011), Feasibility Study for
100 MW Dongola Wind Farm, p.141.] [20: Lahmeyer International
(2013), Long and Medium Term Power System Plans of Sudan, pp
17.]
11. The following figure shows power consumption in residential,
commercial and industrial sectors. The residential sector is the
largest consumer, responsible for 52% of consumption, with
commercial, industrial and others splitting the remaining 48%
roughly equally.
Figure 4: Power consumption in Sudan[footnoteRef:21] [21: Arab
Union of Electricity (2012), Statistical Bulletin.]
12. With the secession of South Sudan in July 2011, Sudan lost
75% of its oil resources. This has further increased the urgency of
the implementation of Sudans Renewable Energy Master Plan (REMP),
to reduce Sudans dependence on fossil fuel. Sudan has abundant wind
and solar resources, as shown in the resource maps below, but
currently lacks the capacity to utilise these resources for power
generation.
13. A wind measurement campaign was started in Northern Sudan in
2002 in order to identify areas of high wind energy potential and
investigate the feasibility of electrical power generation by wind
energy. Subsequent wind measurements have focused on other areas of
high potential. A number of studies confirm that Sudan has
considerable wind energy resources, with annual average wind speeds
in selected locations in the range of 7-8 m/s, particularly in
North State, north of latitude 12 N and along the Nile
valley.[footnoteRef:22] In total, there is a potential of 5,000 MW
of utility-scale wind energy generation in Sudan.[footnoteRef:23]
The principal sites for wind energy have been identified as: (1)
the central northern part of Sudan with Dongola at its centre; and
(2) the Red Sea region, with Port Sudan as its major city. [22:
Government of Sudan (2011) Renewable Energy Sector Related
Policies, in Draft Second National Communication to the UNFCCC.
(courtesy of Secretary General, Higher Council for Environment and
Natural Resources). Please revisit the location of this text ] [23:
KEMA (2009), Strategic Options for Renewable Energy in North and
South Sudan.]
Figure 5 Calculated annual average wind speed at 50 m height in
Sudan (Red ovals show areas with the highest
potential.[footnoteRef:24] At 60 m height, the winds speeds in
Dongola, Nyala and the Red Sea region are 7.2, 7.9, and 7.0 m/s,
respectively.[footnoteRef:25] ) [24: Lahmeyer International (2013),
Long and Medium Term Power System Plans of Sudan.] [25: Altaif,
Ahmed, Renewable Energy Director, Ministry of Water Resources &
Electricity (2013), Renewable Energy Projects in Sudan
presentation:http://www.slideshare.net/rcreee/rcreee-ener-menasudan-renewable-energy-projects21082013.]
14. Based on the wind speeds in Dongola, Nyala, and the Red Sea
region of 7-8 m/s, and the expected capital costs of wind power,
electricity generation from wind is economic in these areas. As
part of the UNDP-implemented, GEF-financed project, a more accurate
wind map will be developed to help identify areas of high wind
potential. [footnoteRef:26] [26: The present resource map is
generated based on extrapolation of satellite data and limited
ground data. As part of the project, a wind map with measurements
at wind turbine hub-heights, currently about 80 metres, will be
developed. The result will be a map better able to predict the
usable wind resource. ]
Figure 6 Annual available global horizontal irradiation in
Sudan.[footnoteRef:27] [27: Lahmeyer International (2013), Long and
Medium Term Power System Plans.]
15. The majority of Sudan receives solar insolation greater than
2,300 kWh/m2/year, which is considered excellent for isolated and
grid connected power generation systems. To take advantage of
Sudans plentiful solar resources, the Government is planning to
develop four solar projects with a total capacity of 20 MW:
Khartoum PV plant (10 MW), Nyala PV plant (5 MW), Al Fashir PV
plant (3 MW) and Al Geneina (2 MW).[footnoteRef:28] Thus far, these
projects have not been initiated. [28: RCREEE (2012), Sudan
Renewable Energy Country Profile.]
1.2. Baseline, barriers and current government policy to address
the root causes and threats
16. The Ministry of Water Resources and Electricity (MWRE) has
succeeded the Ministry of Electricity and Dams (MED) as the body
responsible for the electricity sector in Sudan. MWRE is planning
the installation and commissioning of four utility-scale wind farms
by 2020: Dongola (100 MW), two Red Sea wind farms (Tokar and Port
Sudan, 180 MW), Nyala (20 MW) and Khartoum (20 MW).[footnoteRef:29]
This time-frame coincides with the implementation of the
UNDP-implemented, GEF-financed project. Table 1 summarises the
details of the wind farms and their status. [29: Following the
guidance of the GEF Secretariat during PIF review, the Dongola and
Red Sea wind farms form the baseline project for the purposes of
the UNDP-implemented, GEF-financed project. The Nyala wind farm is
excluded: it is relatively small, is due to commence after Dongola
(and hence lacks Dongolas symbolic importance as Sudans first
utility-scale wind farm), and has few additional learning or
replication benefits beyond those provided by the Dongola wind
farm. Moreover, the Nyala wind farm is connected to a local grid
but not the national grid and hence lacks national impact and does
not offer potential lessons-learned from integrating wind energy
into the national grid. ]
17. For the purposes of the Global Environment Facility, the
baseline project consists of the Dongola and Red Sea sites. Hence,
the baseline project has a total installed capacity of 280MW that
is expected to produce 849,695MWh of renewable electricity annually
when all the sites are operational. The cost of these wind farms is
approximately US$523 million.
18. To enumerate the added value (incremental reasoning) of the
UNDP-implemented, GEF-financed project, it is necessary to
establish the rationale and orientation of the project for the
market development of wind energy in Sudan. As will be discussed
below, the market development for wind energy faces significant
barriers in Sudan. The baseline project provides a unique
opportunity to start addressing these barriers with a view to
favouring private-sector investment in the market development of
wind energy in the medium-to-long term. Some of these barriers,
namely those related to the transfer of nationally-appropriate wind
energy technologies, will be addressed directly in conjunction with
the baseline project. In order to generate market acceptance at a
time when wind technology does not exist in Sudan, it is crucial to
first demonstrate the technological viability of wind energy in the
local context. Any technological failure at the early stages in
wind energy development will only undermine the acceptance of the
technology in Sudan, resulting in an unwanted increase in yet more
market barriers. Using the favourable conditions generated by the
imminent Dongola wind farm to promote wind energy, other broader
barriers will be addressed by the UNDP-implemented, GEF-financed
project in order to pave the way for the market development of the
Red Sea wind farm and beyond.
Figure 7 Location of the Dongola wind farm indicated by the
green arrow
Figure 8: View to the west across the Dongola wind farm site
Figure 9: Wind speed distribution at 30 m for the Dongola site.
Average wind speed at 60 m above ground level is 7.2 m/s and higher
for 80 m.
19. Although wind energy is mature and technologically viable,
there are currently no applications of wind turbines at any scale
for the generation of electricity in Sudan. The experience of Sudan
with wind turbine technology has thus far been limited to
small-scale mechanical water pumping.
20. The key focus of the UNDP-implemented, GEF-financed project
is to help Sudan understand the planning and operational
requirements of wind power, to gain experience with installation
and grid integration issues, and to employ policy options that
promote wind energy development within the broader context of
low-carbon, climate-resilient development. GEF funding will thereby
create the appropriate technological, institutional, policy and
capacity environment that will enhance the probability of success
of the baseline wind farms and establish the pre-conditions for
replication elsewhere in Sudan.
21. The baseline wind farms currently face technological
barriers, which have not been taken into consideration in their
design. If not addressed decisively, these technological barriers
will enhance the risk of failure of these demonstration wind farms,
thereby reducing future acceptance of the technology. In
particular, the national grid of Sudan is relatively unstable, with
variations in both frequency and voltage (during visits to Sudan,
power outages were observed as well as dimming of the grid voltage
levels)[footnoteRef:30]. The Ministry of Water Resources and
Electricity (MWRE) has experience in synchronising power generated
from different conventional sources that provide base load.
However, MWRE does not have experience in synchronising the grid
with power generated from a variable source such as wind. Although
the power system has improved in recent years, grid stability to
accommodate power generated from a variable source such as wind is
still inadequate. [30: Al Jazeera, 11 March 2014, Sudan's bid to
combat power outages,
http://www.aljazeera.com/video/africa/2014/03/sudan-bid-combat-power-outages-2014311193932109307.html
]
22. Extensive consultations have been held in Sudan with MWRE
and the North State Government where the planned Dongola farm is
located, through two missions to Sudan as part of the project
preparation phase. MWRE confirms that the issue of the interface
electronics has not been considered (or budgeted for) for any of
the baseline wind farms, and that the now-completed tender process
for the Dongola wind farm reflects this omission. Further, MWRE
specifically emphasises the need for GEF assistance in this area.
In the absence of such interface electronics, it is highly probable
that the grid will face islanding problems that will lead to load
management problems and further grid instabilities.
Table 1: Baseline wind farms in Sudan
Wind farm project
Installed capacity (MW)
Electricity generated (MWh/yr)
Expected commissioning date
Status of feasibility study
Status of financing
Included as co-financing for the purposes of the
UNDP-implemented, GEF-financed project?
Dongola
100
300,917
In phases
2014: 5 MW
2015: 20 MW
2016: 25 MW
2017: 25 MW
2018: 25 MW
(total 100 MW)
Completed, will be updated as part of the UNDP-implemented,
GEF-financed project
MWRE will finance in stages
Yes
Nyala
(not part of the baseline project)
20
64,006
2018
Completed
In the process of seeking funding
No
Red Sea (Tokar, Port Sudan)
180
576,054
2018 2020
Pre-feasibility study has been completed
Not yet secured
(US$310 million capital cost anticipated)
No
Khartoum
20
47,000
2016 2019
Land leasing process
Not yet
No
Total
320
960,701
1.3. Institutional framework and stakeholder analysis
23. There are four key stakeholders involved in the development
and deployment of power projects in Sudan. These are the Ministry
of Water Resources and Electricity (MWRE); the Ministry of
Petroleum (MoP); the Higher Council for Environment and Natural
Resources (HCENR), under the Ministry of Environment, Forestry and
Physical Development (MEFPD), which is responsible for assessing
the environmental impacts of projects and issuing the appropriate
permits; and the National Energy Research Centre (NERC), which has
responsibility for the development of novel energy resources and
has a division dedicated to wind energy. Each key stakeholder is
discussed further below.
24. The Ministry of Water Resources and Electricity (MWRE) is
the Government body responsible for electric power in Sudan, and
the National Implementing Partner of this project. MWRE is
responsible for implementing the wind farms described in the
project, as well as being the main counterpart for the policy and
regulatory reforms described. MWRE will also be the host to the
central unit (one stop shop) supporting private-sector investors in
wind power in Sudan. MWRE will carry out the following in the
context of the UNDP-GEF project:
Implementation of wind farms
Support to the policy and regulatory reforms
Use of Dongola implementation as a training facility to support
national capacity building
Hosting a central point to support investors in private wind
power (a one-stop shop)
Installation and monitoring of wind measuring equipment
Data analysis and reporting
Site selection and preparation
Technical economic and environmental studies
Building the local capacity for wind installation operation and
maintenance
Under-Secretary
Electricity Regulatory Authority
Sudanese Electricity Distribution Company
Sudanese Electricity Transmission Company
Merowe Dam Electricity Company
Sudanese Hydro Power Generation Company
Sudanese Thermal Power Generating Company
General Directorate of Policies, Planning and Projects
General Directorate of Investment, Finance and Contracts
General Directorate of International Cooperation
General Directorate of Electricity Generation Using Atomic
Energy and Renewable Energy Sources
General Directorate of Financial and Human Resources
The Minister
Figure 10: Organisational chart of Ministry of Water Resources
and Electricity, 2014, Sudan. . The unit concerned with the present
project is highlighted.
25. The Ministry of Petroleum (MoP) was created in 2010 through
the split of the Ministry of Energy and Mining into three separate
ministries: the Ministry of Water Resources and Electricity, the
Ministry of Petroleum, and the Ministry of Mining. Under the MoP's
General Directorate of Energy Affairs is the Renewable Energy
Directorate. The latter has been active in promoting and developing
a wind energy atlas since 2003. Ongoing and planned MoP activities
in this regard include:
Installing wind energy masts in the various parts of Sudan (in
Toker in Red Sea State, Nyala in Western Darfur State and Dongola
in Northern State).
Collecting and analysing wind energy data.
Developing the wind atlas
Figure 11: Organisational chart of Ministry of Petroleum, 2014,
Sudan. The unit concerned with the present project is
highlighted.
26. Higher Council for Environment and Natural Resources (HCENR)
- The Higher Council for Environment and Natural Resources oversees
the application of environmental laws and regulations to all
development projects in Sudan, and has particular responsibilities
in the climate change area. HCENR serves as the Designated National
Authority (DNA) for the Clean Development Mechanism (CDM). It is
also the focal point for the National Appropriate Mitigation Action
(NAMA[footnoteRef:31]) Focal Point and UNFCCC Focal Point for
Sudan. With UNDP support, HCENR has been developing standardised
baselines for Sudan. HCENR has also developed a Technology Needs
Assessment (TNA) for Climate Change Adaption and Mitigation, funded
by the GEF. In the context of the UNDP-implemented, GEF-financed
project, HCENR will participate in implementation through provision
of the following services: [31: The National Appropriate Mitigation
Action (NAMA) is an online platform operated by the UNFCCC
Secretariat. Its purpose is to increase opportunities for
implementation of and recognition for carbon mitigation actions in
developing countries. ]
Training and participation in conducting EIAs for wind projects,
specifically items of special concern to wind farms such as bird
and bat studies.
Awareness-raising and mobilisation to promote wind applications
for power generation.
Advocacy for wind energy application as a clean source of
energy.
Assistance to the design and implementation of the Nationally
Appropriate Mitigation Action (NAMA) elements of the
UNDP-implemented, GEF-financed project.
Figure 12: Organisational chart of the Ministry of Environment,
Forestry and Physical Development, 2014, Sudan.
27. The National Energy Research Centre (NERC) has been active
in promoting and developing wind energy technologies for
small-scale applications such as water pumping since its
establishment in 1972. NERC has a special department for wind and
mini-hydro equipped with instruments and a mechanical workshop. The
activities of the Wind Department include:
Research in applications of wind technologies
Resources inventory, assessment and evaluation
Supervising the manufacturing of wind models for research
purposes in universities
Training of students and the private sector in wind energy
technologies and applications
Teaching wind energy courses to undergraduate and postgraduate
students in a number of Sudanese universities
Undersecretary
National Energy Research Centre
Africa City of Technology
Atomic Energy Commission
Technology Development and Dissemination Department
Biomass Department
Wind and Mini-hydro Department
Solar Energy Department
National Centre for Research
General Directorate for Renewable Energy
The Minister
Figure 13: Organisational chart of the Ministry of Science and
Communications, 2014, Sudan. . The unit concerned with the present
project is highlighted.
Table 2: Stakeholder roles and co-finance amounts for wind
project 2014 Sudan
Stakeholder
Role
Co-financing Amount ($)
MWRE
Implementation of wind farms
Support to the policy and regulatory reforms
Use of Dongola implementation as a training facility to support
national capacity building
Hosting a central point to support investors in private wind
power (a one-stop shop)
Installation and monitoring of wind measuring equipment
Data analysis and reporting
Site selection and preparation
Technical economic and environmental studies
Building the local capacity for wind installation operation and
maintenance
213,000,000
MoP
Installing wind energy masts in the various parts of Sudan (in
Toker in Red Sea State, Nyala in Western Darfur State and Dongola
in Northern State).
Collecting and analysing wind energy data.
Developing the wind atlas
250,000
HCENR
Training and participation in conducting EIAs for wind projects,
specifically items of special concern to wind farms such as bird
and bat studies.
Awareness-raising and mobilisation to promote wind applications
for power generation.
Advocacy for wind energy application as a clean source of
energy.
Assistance to the design and implementation of the Nationally
Appropriate Mitigation Action (NAMA) elements of the
UNDP-implemented, GEF-financed project.
200,000
NERC
Research in applications of wind technologies
Resources inventory, assessment and evaluation
Supervising the manufacturing of wind models for research
purposes in universities
Training of students and the private sector in wind energy
technologies and applications
Teaching wind energy courses to undergraduate and postgraduate
students in a number of Sudanese universities
250,000
UNDP
Project implementing agency
250,000
2. Strategy
2.1. Project Objectives, Outcomes, and Outputs
28. The objective of the project is to reduce greenhouse gas
(GHG) emissions by promoting the use of wind energy in Sudan. The
project will provide direct technical assistance to the Dongola
wind farm and will aid in the replication of experiences from the
Dongola wind farm to be applied to the Red Sea wind farms and
subsequent wind farms. The project also aims to put in place
legislation and a framework to promote private sector involvement
in renewable energy in Sudan.
29. The Dongola wind farm will be owned and operated by MWRE.
Future wind farms, in particular the planned wind farms on the Red
Sea, are intended to be privately owned and operated as IPP
projects, provided the appropriate legislation, guidelines,
regulations and experience are in place to support their
development as such. An outcome of the UNDP-implemented,
GEF-financed project is to enable the Government of Sudan to tender
future wind farms as IPP projects.
30. The project preparation process involved extensive
stakeholder consultation through two missions (five-days each) to
Sudan, including consultations in the capital, Khartoum, and in
North State capital, Dongola . The consultations included an
inclusive workshop held at MWRE with relevant stakeholders as well
as consultation with the North State Government and visits to the
Dongola site. A site inspection was undertaken by an international
ornithological and ecological expert to address items not included
in the present Environmental Impact Assessment (EIA) for the
Dongola project, notably the issue of the wind farms potential
impact on resident and migrating birds. Initial indications are
that the site does not pose an ecological threat; nonetheless,
appropriate ecological surveying will take place as part of the
UNDP-implemented, GEF-financed project, both for the benefit of the
Dongola wind farm and also so as to establish protocols and
capacities to implement similar surveys at future wind farm sites.
As a result of the extensive stakeholder consultations and comments
received, which are reflected in the project design, the project
has considerable ownership by the relevant entities and
stakeholders in Sudan.
31. The UNDP-implemented, GEF-financed project will advance the
baseline scenario in Sudan by creating a technical and regulatory
basis for the development of wind power specifically and renewable
energy in general, as many of the underlying regulations are
similar. The project will support existing initiatives, such as the
draft Electricity Law, the Investment Law, and the application of
lessons-learned in Dongola in the construction of the Nyala and Red
Sea wind farms. The experiences gained in Dongola should serve to
reduce the risk of investing in wind farms in Sudan and help
encourage private-sector investors to participate.
32. The project provides a series of distinct and coordinated
initiatives to achieve:
Support for the construction of the Dongola wind farm in a
manner that follows international norms and best practices with
respect to the wind farm and the electricity grid;
Support for a regulatory framework that paves the way for the
implementation of wind farms throughout Sudan to help meet the
countrys energy needs for sustainable development through
Government and private-sector participation;
Capacity building to establish the technical and regulatory
capacities within Sudan to promote the development of wind
farms;
A replication plan to both promote the replication of wind farms
throughout Sudan and support their replication by providing
distilled lessons and tools from the implementation of Dongola.
Outcome 1: Grid-connected power generation from wind farm
introduced.
33. This outcome will provide assistance to the development of
the Dongola wind farm, specifically in supporting the construction
of the wind farm in phases, the grid interconnection aspects of the
wind farm, and the development of a set of guidelines for
replication of wind farms throughout Sudan. The Government is
implementing the wind farm in phases, with 5 MW to be built in
2014, 20 MW in 2015, and 25 MW to be built in each year between
2016-2018, to reach the 100 MW total. The phasing of the Dongola
wind farm implementation introduces challenges and opportunities.
The UNDP-implemented, GEF-financed project will help to address
some of the challenges and take advantage of the opportunities that
arise.
34. The principal challenge lies in planning and procurements
for a project that will be implemented in stages over five years
rather than in a single stage. Wind farms are often designed in
conjunction with the selected turbines and laid out in a
configuration so as to produce the optimum amount of power for a
given site. Considerations will have to be made to design a wind
farm that will be implemented in phases, and for which the turbines
to be purchased in later phases may not be known in advance as the
tendering will not have occurred. A strong design team and project
management will be needed to ensure the smooth development of the
project. Aside from the technical challenges, there are also
procurement challenges with respect to modifying a contract that
was initially intended to be 100 MW in a single phase to now be
phased over five years, and ensuring that pricing remains
competitive.
35. The opportunities arise in learning throughout the
implementation process. Whereas typically lessons are learned from
one project to be utilised in a future project, in this case
lessons learned in the first phase can be immediately applied in
subsequent phases. It also allows implementation to begin
immediately, with minimal additional studies since the issues
associated with the first-phase 5 MW wind farm are quite different
from those for a 100 MW wind farm. Some of the studies performed
earlier for the Dongola wind farm have overlooked significant
aspects, such as evaluation of the effects on bird life in the EIA
or grid integration aspects in the feasibility study. The
UNDP-implemented, GEF-financed project will support these studies
and therefore enhance the operational and environmental robustness
of the wind farm.
36. With Sudans relatively small grid capacity, upon completion
of the Dongola wind farm the installed wind capacity will be
approximately 3% of the total installed capacity. At times of high
wind energy output and low overall loads, wind penetration on the
grid may reach 10%. On the other hand, Sudan has excellent
hydro-power penetration, with approximately 58% of installed
capacity and 79% of generated energy coming from hydro-power (MWRE
2013 Long Term Power System Plan). There is thus excellent
potential to use the hydro-power to stabilise a grid with a large
percentage of variable renewables, whether wind or solar. This will
allow Sudan to surpass one of the obstacles to development of
significant renewable energy capacity in countries with relatively
small grid capacities. This stabilising and facilitating role of
hydro-power has hitherto not attracted any attention, but it will
be addressed as part of the UNDP-implemented, GEF-financed
project.
37. A grid study will be carried out for the Dongola wind farm,
with particular attention given to the interconnection equipment
and grid interface electronics. Support will also be provided to
ensure that the wind farm data is made available to the national
load dispatch centre, which manages power plant dispatch throughout
Sudan. The load dispatch centre relies on short, medium and
long-term forecasts of the load to balance supply and demand on the
network. The role of the load dispatch centre, and its reliance on
information and the availability of proper equipment at the wind
farms, will increase as the amount of wind energy connected to the
grid increases. The load dispatch centre will also have a need for
forecasting wind generation in the way it does loads, and the
ability to maintain spinning reserves (or hydro-power reserves) to
compensate for fluctuations. Grid considerations have not been
taken into account for the Dongola wind farm and a grid
interconnection study has not been undertaken. The work done as
part of this output will play a critical role not only in
maximising the benefits from the Dongola wind farm, but in laying
the groundwork to allow Sudan to connect increasing amounts of wind
energy while managing a smoothly operating grid.
38. As part of this outcome, the wind farm implementation
specifications will be reviewed in light of the project phasing and
grid connection requirements. The specifications will be amended to
include equipment and procedures for grid connection and monitoring
and evaluation requirements. Appropriate supervision of
construction will also be included to ensure that the outcomes are
as intended in the specifications.
39. Unlike conventional power plants, where the cost of energy
produced is directly related to the fuel burned, renewable energy
power plants (including hydropower) are capital-intensive and
thereafter fuel is free. It is therefore in the interest of the
electricity system to maximise the operation of renewable energy
plants. The operation, maintenance and management of renewable
energy plants to maximise their outputs therefore plays a
significant role in making the electricity they generate
cost-effective. To help achieve optimal operation, Outcome 1
includes training for MWRE staff and project staff on project
implementation and management, and operational best practices and
monitoring, including such local specific items as grid
interaction[footnoteRef:32] to maximise the wind energy generated,
and maintaining turbine blade efficiency in a dusty climate which
can erode efficiency. [32: Wind power plants, like all plants on a
network, affect the operation of the network. Because wind power
plants depend on the wind rather than operator input they must be
regulated to control, for example, power outputs, ramp rates,
frequency control and voltage control so as not to inject
undesirable dynamics onto the power grid.]
40. To streamline future wind farms, this project outcome will
focus on the development of standardised guidelines and procedures
for future wind farms. These guidelines will be developed during
the implementation of the Dongola wind farm to make sure that the
experiences gained from Dongola are well encapsulated for future
wind farms. Guidelines will be divided into technical and
financial. Technical guidelines will include EIA guidelines, tools
for the assessment of identified Red Sea wind farms, and template
tender documents and proposal materials for investors. The
financial guidelines for renewable energy will include banking
proposal preparation; training to support negotiations with
investors; and regional development and bottle-neck issues (e.g.
logistical/accessibility constraints). In effect, the
UNDP-implemented, GEF-financed project will lay the groundwork for
a healthy private-sector IPP wind energy market to develop in
Sudan.
41. In cooperation with MWRE, a framework policy for a feed-in
tariff will be developed; and in conjunction with HCENR, a NAMA
will be developed around the feed-in tariff. HCENR has officially
notified the UNFCCC that the UNDP-implemented, GEF-financed project
will be developing a Feed-in-Tarrif (FiT) as a NAMA, and this
information has already been submitted to the NAMA Registry. A set
of guidelines will be established for NAMA eligibility and design
criteria. HCENR will act as the national coordinating institution
and quality assurer for the NAMA. For the purpose of calculating
emission reductions in the context of the NAMA, a tool for annually
updating the emission factor of the national electricity system,
based on the established CDM tool for this purpose, will be
developed.
42. The UNDP-implemented, GEF-financed project will
significantly advance the state of environmental impact assessment
needed for wind farms in Sudan. A significant part of that
advancement is with respect to evaluation of the ecological impact
of wind farms, particularly on avian species. The UNDP-implemented,
GEF-financed Migratory Soaring Birds project[footnoteRef:33] has
produced a significant body of work which, prior to this project
preparation, had not been utilised in the context of GEF-financed
climate change mitigation projects. As part of the project
preparation, an international expert from the Migratory Soaring
Birds project visited the Dongola wind farm site and utilised tools
from the Migratory Soaring Birds project to help evaluate the
potential impact on the site. Some of the outputs are shown below.
As part of the current project, the EIA already in place will be
updated and improved to bring it in line with international best
practice and best guidance. Protocols and tools developed by the
project in conjunction with the Dongola wind farm will be made
available to all future wind farms, most imminently the Red Sea
wind farms. [33: PMIS 1028.]
Outcome 1
Outputs
Activities
1. Power generation from wind energy resources increased.
1.1 Wind farm design, installation and operation of interface
electronics in Dongola wind farm was completed such that islanding
problems are avoided and grid stability is ensured.
1.1.1 Conduct a detailed grid study for Dongola wind farm in
conjunction with the Ministry of Water Resources & Electricity
and the Engineering, Procurement & Construction (EPC)
contractor, including a review of interconnection equipment and
interface electronics, and monitoring of the grid. Sudan's large
hydro-electricity capacity provides a good opportunity for
stabilising the grid with fluctuating renewables.
1.1.2 Review of contract technical specifications, supervision
of construction, testing and commissioning of Dongola wind
farm.
1.1.3. Training for a) project implementation and project
management, and b) operational best practices and monitoring,
including such local specific items as grid interaction to maximise
the wind energy generated, and maintaining turbine blade efficiency
in a dusty climate which can erode efficiency. Training will
include the National Control Centre, responsible for dispatching
power plants.
1.2 Completed and approved replication and investment plan for
the construction of additional wind farms in the Red Sea region
prepared with the objective of catalysing new investment:
Technical component for the Red Sea wind farms to address
interface electronics and grid stability, minimisation of
environmental impacts (e.g. soaring birds) and development of a
prioritised list of practicable wind farm sites.
Finance component for the Red Sea wind farms to support
implementation as private-sector IPP projects: address business
planning; banking proposal preparation; negotiation with investors;
regional development and bottle-neck issues (e.g.
logistical/accessibility constraints); NAMA development for the Red
Sea wind farms to catalyse climate finance.
1.2.1 Assessment of the potential ecological impacts of the
development process and post-construction assessment of Dongola
wind farm and development of tools, templates and protocols for
future projects.
1.2.2 Development of guidelines for wind farm-specific EIA
considerations (e.g. migrating birds, noise) and other hazards
(e.g. civil and military aviation). These will make use of
materials from the UNDP-implemented, GEF-financed Soaring Birds
project.
1.2.3 Detailed assessment of identified Red Sea and future wind
farms sites using the tools, templates and protocols developed.
1.2.4 Development of the Red Sea wind farm tender and investor
proposal documents in conjunction with the Ministry of Water
Resources & Electricity.
1.2.5 Development of a feed-in tariff policy NAMA for wind power
in Sudan, including: development of a set of guidelines to
establish national NAMA eligibility and design criteria;
strengthening HCENR as the national coordinating institution and
quality assurer for NAMAs; establishment of a baseline for
calculating emission reductions from grid-connected renewable
energy through development of a tool for annually updating the
emission factor of the national electricity system; and development
and implementation of an MRV framework for the NAMA.
Figure 14: Integrated Biodiversity Assessment Tool (IBAT) map
for Sudan
Figure 15: Soaring bird sensitivity map for Dongola generated as
part of the project preparation process
Outcome 2: Policy and institutional regulatory framework
adopted
43. Outcome 2 focuses on mobilising increased wind power
investment in Sudan through enabling policy and regulatory
frameworks. The outcome strengthens the renewable energy component
of Sudan's long-term energy plan, explores the costs and benefits
of a range of financial incentives, and integrates policies and
codes, in particular, to comply with the East African Power Pool
members, which are envisaged to trade power with Sudan through a
common grid in the future.[footnoteRef:34] [34:
http://www.eappool.org/about-eapp/eapp-governance.html ]
44. To help encourage private investments in wind energy, the
activities of this outcome are structured around creating a
coherent system of policies and standardised tools to streamline
the investment process. These include an analysis of the
cost-effectiveness of various financial policy instruments
(portfolio standards, feed-in-tariffs, carbon finance, carbon
taxation, removal of fossil fuel subsidies, reforms of existing
tariffs, accelerated depreciation of turbines, tax credits, capital
subsidies, time-of-use tariffs, etc.) for reducing GHG emissions
and increasing the energy independence of Sudan.
45. Based on certain selected cost-effective policies,
standardised agreements will be formulated for power purchase,
metering and accounting guidelines. These will allow investors to
clearly determine prior to their initial steps the format of the
agreements they would enter into, therefore considerably reducing
initial risk and encouraging private-sector participation. It will
also contribute greatly to the transparency of the sector. The goal
of these agreements and guidelines is to provide a single
standardised Power Purchase Agreement (PPA) template which can
streamline the process of contracting with developers.
46. To help achieve maximum cost-effectiveness, activities under
this outcome will make use of wind resource, grid accessibility,
ecological impact and terrain data to estimate wind energy costs
throughout Sudan. These cost estimates, together with information
from the Government of Sudans development plans and strategies,
will help support the process of identifying areas to for wind
development, and establishing a feed-in tariff that is sensitive to
the variations between locations. Such a spatially-differentiated
FiT would be strategically planned to account for variations in the
wind resource, grid availability/stability and economic development
to achieve the greatest overall developmental impact for Sudan. The
tariffs will be periodically revised and updated based on changes
in market conditions and on the amount of power that has been
installed relative to Sudans targets and needs.
47. Outcome 2 also includes the adoption of secondary
legislation to promote private-sector investment in wind energy
projects, including a Public-Private Partnership Act and an
Independent Power Producers Act. This output puts in place general
legislation to provide an overall framework for the adoption of
renewable energy technologies and their connection to the grid,
including a grid code specifying the technical requirements for the
interconnection of renewable energy sources; an inter-ministerial
National High Committee for Renewable Energy (NHCRE) for providing
cross-sectoral perspectives and high-level political support for
renewable energy; and a single point of interaction (a so-called
one stop shop), housed within MWRE, where wind energy developers
can access all required information and obtain necessary
permits.
48. A grid code is a central component of allowing power
producers to connect to the grid while ensuring that a stable and
functional grid is maintained. The grid code specifies the
technical aspects of the grid connection to ensure that the power
plant can adequately react to fluctuations in the grid and to
ensure that the power plant output does not fluctuate in a way that
disturbs the grid. A typical grid code specifies parameters such as
the voltage-time response required, such that the voltage from the
plant ramps up gradually instead of suddenly. Other parameters
often specified include frequency fluctuations and requirements
that the plant disconnect upon instruction from the grid control
centre (dispatch centre). The existence of a grid code standardises
these aspects by fixing voltage regulation ranges, response times
and other variables. In the presence of a good grid code, taking
into account the characteristics of the Sudanese grid, users will
be allowed to connect to the grid in a way that maximises their
power generation while allowing the grid controller to maintain a
well regulated, stable grid. By contrast, without a grid code, the
connection of each individual plant becomes a difficult process and
maintaining a well regulated grid becomes a matter of ad hoc
adaptation. A robust grid code will take advantage of Sudans large
hydro-power resources to stabilise the overall grid and allow
maximum penetration of variable renewable resources.
49. To help support Sudans development of wind resources, the
project will promote the centralisation of several planning and
execution facilities. With respect to Government entities and the
political process, an inter-ministerial committee, the National
High Committee for Renewable Energy (NHCRE), will be established
with a mandate and operational guidelines to strengthen and
harmonise renewable energy policies and streamline the
decision-making process. The Committee will rely on appropriate
support from other stakeholders, providing it with the technical
resources to efficiently issue sound judgments that will support
and enable the development of renewable energies.
50. From the perspective of investors and project developers, a
one-stop-shop will be established to consolidate all requirements
for permits and permissions within a clear set of documentation
that will allow for smooth and transparent interaction with the
regulatory process. An office will be established in MWRE to
provide a single point of contact for investors with the Government
and permitting process. To support this one-stop-shop, a training
programme will be enacted to put in place procedures and support
for the staff.
Outcome 2
Outputs
Activities
2. Policy, Institutional, and regulatory framework adopted.
2.1 Formulated long-term energy policy and regulations for
Sudan, including analysis of the cost-effectiveness of financial
policy instruments (portfolio standards, feed-in-tariffs, carbon
finance, carbon taxation, removal of fossil fuel subsidies, reforms
of existing tariffs, accelerated depreciation of turbines, tax
credits, capital subsidies, time-of-use tariffs, etc.) for reducing
GHG emissions and increasing the energy independence of Sudan.
2.2 Developed and endorsed standardised Power Purchase Agreement
(PPA) for grid-connected renewable energy projects.
2.3 Established and approved dynamic, geographically-zoned
feed-in tariff for wind energy in Sudan.
2.4 Adopted and approved secondary legislation relevant to wind
energy developed for catalysing private sector investment in wind
energy projects, including a Public-Private Partnership Act and an
Independent Power Producers Act.
2.5 Formulated and adopted grid code for the interconnection of
variable renewable energy sources.
2.6 Established and operational inter-ministerial High Committee
for Renewable Energy for providing crosssectoral perspectives and
high-level political support for clean energy.
2.7 Established an operational one-stop shop (OSS) for wind
energy investors and developers housed jointly between the
Investment and Regulatory Departments of the Ministry of Water
Resources and Electricity.
2.1.1 Strengthening of the RE component of Sudan's LongTerm
Energy Plan.
2.1.2 Development of a structured analytical process using
Systems Dynamic Modelling and a stakeholder consultation process to
explore cost-benefit profiles of a range of financial policy
instruments.
2.1.3 Integration of policies and codes, maintaining
compatibility with East African Power Pool members.
2.2.1 Established regulatory framework for renewable energy
purchases, including standardised Power Purchase Agreements.
2.2.2 Established guidelines for IPP energy metering and
accounting.
2.3.1 Estimation of wind energy production costs in selected
regions of Sudan based on geographical conditions and wind speeds,
and grid availability/stability.
2.3.2 Design and establishment of a feed-in tariff mechanism for
wind energy IPPs based on geographical zones.
2.4.1 Evaluation and development of legislation and regulations
for private-sector grid-connected power generation, including a
Public-Private Partnership Act, an Independent Power Producer Act
and pro-wind energy revisions to the Investment Act.
2.4.2 Establishment of guidelines for the use of the FiT, PPP
rules and other mechanisms to support independent power producers,
including an arbitration mechanism for IPPs.
2.4.3 Design of a PPP programme for wind farms with the
Government.
2.5.1 Bounds and guidelines established for frequency and
voltage stability of the national grid to allow the reliable
inter-connection of renewable energy sources of variable
nature.
2.5.2 Established and approved guidelines for new sub-stations
and transmission lines for the interconnection of additional wind
farms to the national grid.
2.6.1 Mandate, membership and operational guidelines defined for
the Committee.
2.6.2 Institutional strengthening and harmonisation of policy
agendas of participant institutions for streamlined Committee
decision-making.
2.7.1 Consolidation of requirements for permits and legislation
for wind energy projects in a single location with a single set of
documentation explaining the process and requirements for
investors.
2.7.2 Interface with required institutions to provide
representation within MWRE capable of providing the OSS
service.
2.7.3 Establishing procedures and training personnel to support
integration of the permitting process, site-specific surveying,
technical assistance for feasibility studies, and ecological and
environmental impact assessments to help support the requirements
of financiers and donors.
Outcome 3: The wind technology support and delivery system
Strengthened
51. This outcome aims to enhance stakeholders technical and
planning know-how and technological capacities for wind power
initiatives. To achieve this, a wind atlas for the Republic of
Sudan will be developed in a GIS system, with additional layers for
geology, geomorphology, land ownership and type (e.g. protected
areas / forests), settlements and routes of migratory birds. By
overlaying geographical data such as wind speeds, elevations,
general soil conditions, distance from the grid, cost of land and
other variables, it will be possible to produce an atlas of
estimated wind energy production costs at locations throughout
Sudan. This atlas will be the basis for establishing
spatially-differentiated feed-in tariffs and will provide a
valuable tool in evaluating areas in which to invest.
52. A training programme will be implemented such that during
the phased construction of the Dongola wind farm local experts,
technicians and practitioners will be trained to prepare and
conduct site study visits during construction, interconnection,
operation and maintenance of the pilot wind farms. This will build
a cadre of locally-available skilled knowledge that can contribute
to the development and operation of wind farms.
53. One of the impediments to the development of wind energy at
present is a lack of local knowledge of wind farms and their
implementation, making each step in the process more difficult and
slower. The phasing of the Dongola wind farm will in essence
support a five-year construction programme that will serve as an
extended five-year training site for local personnel. Although the
phasing delays somewhat the onset of wind capacity on the grid, it
provides a much greater opportunity for learning, training,
development of guidelines and immediate implementation of
lessons-learned.
54. To further spread local capability for wind technology,
renewable energy-related curricula for national universities and
the National Energy Research Centre (NERC) will be supported. This
activity will help create a generation of young graduates who have
a strong theoretical background in wind technology and experience
with local conditions.
Outcome 3
Outputs
Activities
3. Strengthed the wind technology support and delivery
system.
3.1 Developed and approved wind atlas for Sudan in a GIS system,
with additional layers for geology, geomorphology, land ownership
and type (e.g. protected areas / forests), settlements and routes
of migratory birds.
3.2 Local experts, technicians and practitioners capacitated to
prepare and conduct site study visits during construction,
interconnection, operation and maintenance of the initial wind
farm.
3.3 Approved RE-related curricula of specialised universities
and the National Energy Research Centre (NERC).
3.1.1 Compilation and reconciliation of existing wind data and
establishment of wind measurement masts where needed.
3.1.2 Compilation of sources of data for geology, geomorphology,
land ownership, settlements, electric grid connections, bird
migration, cultural heritage, etc.
3.1.3 Integration of wind and other datasets, including the wind
cost estimates developed under 2.3.1, into a GIS system capable of
Web-based (off-site) interrogation and analysis.
3.1.4 Development of a national map to highlight priority areas
for wind development.
3.2.1 Establishment of a structured training programme for
national experts, technicians, academics and students throughout
the construction of the Dongola wind farm to help build capacity
and establish strong linkages with educational and vocational
courses.
3.2.2 Establishment of an ongoing O&M training centre at the
Dongola wind farm.
3.3.1 Development of training, demonstration and study materials
for participating universities and NERC; development or adoption of
technical standards.
3.3.2 Establishing collaboration with established RE-related
curricula and activities at international universities and
institutions.
Outcome 4: Adaptive learning and replication plan supported
55. To help enable conditions for leveraging significant
additional investment and knowledge nationally and regionally, this
outcome will provide documented lessons-learned, experiences and
best practices related to the development of the Dongola wind farm.
It will also arrange regional workshops for transferring knowledge
and capacity to Sudan from relevant regional countries with
established wind energy sectors (e.g. Egypt, Morocco, and
Kenya).
56. The outcome will help ensure the continued successful
operation of the Dongola wind farm by putting in place a quality
assurance process, for example ISO 9001.The documentation of such a
process will help codify the operational practices used and serve
as a basis for dissemination of lessons-learned and practices from
Dongola.
57. To take advantage of regional experience in wind energy, the
project will establish study tours to support the networking of
Sudanese wind professionals with counterparts in the region. Such
tours will form a basis for cooperation with the East African Power
Pool, of which Sudan is already a part, to strengthen regional ties
and further the exchange of renewable power across the East African
grid.
Outcome 4
Outputs
Activities
4. Adaptive learning and replication plan supported.
4.1 Documented lessons-learned, experiences and best practices
related to the development of the Dongola wind farm compiled and
disseminated for other wind farm projects in Sudan.
4.2 Completed regional workshops for transferring knowledge and
capacity to Sudan from relevant regional countries (e.g. Egypt,
Morocco, Kenya).
4.1.1 Development of a set of documents, lessons-learned and
practices as a case study of the implementation of Dongola wind
farm.
4.1.2 Establishment of a quality management certification
process (e.g. ISO 9001) at Dongola wind farm to serve as an example
to other wind farms in Sudan.
4.1.3 Establishment of methods for ongoing dissemination of
lessons-learned and best-practices through online media and other
means, such as training sessions, universities, etc.
4.1.4. Specialised local engineering universities, research
institutions, professional syndicates, NGOs and consulting
companies with enhanced technical capacity to site, design,
install, operate and maintain wind turbines at selected project
sites.
4.2.1 Establishment of study tours, networking connections and
assuring interaction at regional forums on a regular basis.
4.2.2 Establishment of regional cooperation among East African
Power Pool countries on the development and integration of
renewable energy into the East African grid.
2.2. Key indicators, risks and assumptions
58. In accordance with the GEF-5 Climate Change Focal Area
Objective #3, to Promote Investment in Renewable Energy
Technologies, the key success indicators of the project are:
The extent to which policies and regulations for RE are adopted
and enforced;
The volume of investment mobilised; and
The number of tonnes of CO2-equivalent avoided.
59. The project specifically aims to achieve the following:
Installation of the 100 MW Dongola wind farm, while ensuring a
stable grid connection.
Replication of lessons from Dongola for the Nyala, Khartoum and
Red Sea wind farms.
Development of a comprehensive set of policies and regulations
to encourage investment in wind power in Sudan.
Completion of technical and regulatory standards needed for
connection of private-sector power generators to the grid.
Development of a wind resource map for Sudan, coupled with other
geographical information, such as bird flights, to determine
optimal areas for development.
Development of a NAMA around a spatially-differentiated feed-in
tariff.
Development of a one stop shop within the Government to
streamline the project development process.
Development of human capacity, through training, workshops and
advanced study curricula, to support wind farm projects.
60. For further details about the related targets, see the
projects results framework in Section3.
61. The main identified risks to the successful implementation
of the project include:
Finance Obtaining finance for the wind farms continues to be a
challenging. The Government has committed to developing the Dongola
wind farm in phases to overcome this obstacle. The private-sector
financial system is not currently well equipped to make major
investments in wind energy, largely because domestic financiers
lack examples of functioning wind farms against which to appraise
new project proposals. Successful implementation of Dongola wind
farm will provide just such an example.
Political The Government may fail to marshal the necessary
resources or coordination amongst its entities to bring about the
desired legislative and regulatory reform. MWRE already faces a
significant burden in meeting rising demand for electricity.
Implementation of policy reforms requires the involvement of MWRE,
MoP, the Cabinet of Ministers and other Government bodies. The
necessity to coordinate between these entities represents one of
the risks to successful implementation of the project.
Novelty and adoption risk Private-sector entities in Sudan are
slow to adopt new technology and take up unfamiliar businesses in
part because the overall system does not encourage such behaviour.
To date, there has not been any private-sector investment in
utility-scale power generation. The capital investment required is
large and may not be easily raised locally while foreign investors
are wary of perceived investment risks in Sudan.
Technology Technical risk is minimal, especially as wind
turbines have been installed in conditions similar to those in
Sudan for many years. Early installations in neighbouring Egypt had
failures due to the heat and dust. Manufacturers currently offer
turbine packages for high-temperature and high-dust locations to
allow turbines to function in these environments.
Performance risk The operation of wind farms in Sudan's climate
is different from operation in European climates. Performance is
sometimes degraded, because of heat, because of maintenance
downtime, or because of the accumulation of dust on the turbine
blades. These issues can be mitigated with appropriate operations
and maintenance, but must be well planned for.
Implementation capacity Inadequate and/or non-capacitated human
resources to successfully implement the project and support the
mainstreaming of its results. The current capacity to implement and
operate wind farms in Sudan is almost non-existent. The proposed
project includes elements to develop human capacity. Should these
not succeed, they represent a risk to the sustainable development
and operation of wind farms in Sudan.
Climate change The climate risk faced by the project is minimal.
The greatest climate change risk would be a shift in wind patterns
but a shift large enough to have material impact on the baseline
wind farms is not expected within their 20 year lifetimes and even
thereafter. The National Adaptation Programme of Action (NAPA,
2007) observes that the occurrence of extreme weather events in the
form of wind storms is rare. The impact of higher air temperature
on changes in air density (leading to power loss) is insignificant.
However, climate change will adversely affect hydro-power because
of reduced rainfall. Hydro-power is Sudan's main power source. A
change in river flows would cause Government and private sector
attention to be drawn away from hydro-power and to the potential of
other sources, such as wind power.
Ecological risks As part of the project preparation, the Dongola
wind farm site was visited by an international ornithologist and
ecology expert, who determined that the site posed minimal risks to
wildlife and birds. As part of the UNDP-implemented, GEF-financed
project, a more detailed site survey will be undertaken to assess
bird risks and impacts, and the means of mitigating them, including
options such as avian deflectors for transmission lines (see Figure
16 below). Migratory bird routes are likely to be a more
significant issue for the Red Sea wind farm; the project will
ensure that the appropriate protocols and systems are in place to
minimise avian impacts.
Figure 16 Example of a bird risk mitigation measure - avian
deflectors for power lines.
62. Further details on these risks, with their probability and
impact analysis and related mitigation measures, are presented in
the Offline Risk Log in Annex 7-1.
63. For addressing the project management risks, a committed,
full-time project manager with adequate outreach and networking
skills is absolutely essential for the success of the activities.
The project manager should have an ability: i) to engage the key
stakeholders in constructive discussion about future renewable
energy development needs; ii) to guide and supervise the studies
undertaken and effectively co-operate with the international
experts who are engaged to support this work; iii) to present their
findings and recommendations in a convincing manner to key
policy-makers and opinion leaders by taking into account the main
macroeconomic and policy drivers for domestic energy sector
development; and iv) to identify areas of future work. During
project implementation, the project manager also needs to be
supported by qualified technical and legal experts.
64. A typical risk for the training and capacity building
activities is that, after the completion of training, there will be
no real demand for the services of the trained experts. The
integrated approach adopted by the project is expected to mitigate
this risk by providing opportunities for those trained on the
Dongola wind farm to participate in the Nyala, Khartoum and Red Sea
wind farms, therefore considerably increasing the local human
contribution to these wind farms and encouraging further
replication.
2.3. Expected benefits, design principles and strategic
considerations
65. The calculated global GHGs reduction benefits of the project
will consist of a combination of:
Direct GHG emission reduction benefits from the Dongola wind
farm.
Indirect GHG reduction benefits resulting from broader market
transformation arising from project activities.
66. No post-project GHG emission reduction benefits arising from
ongoing operation of financing mechanisms established or supported
by the project have been accounted for in this project, as the GEF
cash contribution to capital investments represents a one-time
capital grant without expected pay-back.
67. Over the lifetime of the UNDP-implemented, GEF-financed
project, the direct CO2 emission reductions attributed to the
Dongola wind farm are calculated to be 91,780 tCO2/year, or
1,835,600 tCO2 over the 20year life of the wind
farm.[footnoteRef:35] With a GEF financial contribution of
$3,536,634, this translates as a cost of $GEF 1.93/tCO2 abated
directly. This does not include any wind farms installed as an
indirect result of the project through the projects market-opening,
awareness-raising and supply chain assistance activities, for
example. For further details about the assumptions and results of
the projects GHG reduction analysis, see Annex 8-4. [35: Lahmeyer
International (2013), 100 MW Wind Power Project in Dongola.]
68. The associated national and local benefits include reduced
local pollution from the burning of fossil fuels and strengthened
national energy security through reduced dependency on imported
fuels.
69. These developments will catalyse the adoption of wind
technology and provide a foundation that allows the widespread use
of wind energy either in response to regulatory stimulus or simply
to help realise systems where wind energy may already be
advantageous but is not utilised due to a lack of capacity or
awareness.
2.4. Project rationale and policy conformity
70. The project contributes to GEF Climate Change Focal Area
Objective #3, to Promote Investment in Renewable Energy
Technologies, recognising that renewable energy plays an
indispensable role not only in combating global climate change but
also in addressing energy access, energy security, environmental
pollution and sustainable development. In accordance with the
adopted strategy, the GEF support under expands beyond the creation
of an enabling policy and regulatory environment and also
encompasses wind energy investment projects that will lead to a
step-change in the deployment of wind energy.
71. The specific outcomes of the GEF-5 climate change strategy
that the project will address are the following:
Favourable policy and regulatory environment created for
renewable energy investments.
Investment in renewable energy technologies increased.
GHG emissions avoided.
72. The project is consistent with Sudan's national strategies,
as evidenced by the already-existing incentives for renewable power
in Sudan's Investment Act. The project will help further the goals
Sudan's national strategies by putting in place the overall
framework that will make them effective. The Technology Needs
Assessment (TNA) carried out by HCENR with GEF support points to
renewable energy as one of Sudan's key priorities in climate change
mitigation. Similarly, Sudan's Second National Communication to the
UNFCCC includes renewable energy as a key potential mitigation
option. The objective of the project is also consistent with the
views and objectives espoused by several stakeholders, especially
from MWRE, during the extensive consultation process carried out as
part of the project preparation.
73. The project aims to develop and accelerate the adoption of
grid-integrated wind power generation by providing a structure
around the Dongola wind farm to translate the experience from that
project onto a national basis to be replicated by other wind farms,
most notably the planned Red Sea wind farms at Toker, Port Sudan,
Nyala and Khartoum. Sudans development depends critically on the
availability of reliable electric power and independence from
fossil fuels as Sudan is currently a fossil fuel-poor nation. The
present lack of availability of options, the lack of a framework to
allow the sale of power to the grid, the lack of technical know-how
in the market, the lack of user experience with the technology, and
the lack of hands-on experience amongst Government officials means
that adoption of fossil fuel alternatives is slow and limited.
74. The UNDP-implemented, GEF-financed project will achieve its
objective by addressing impediments to the development of
private-sector wind power projects. Specifically, the project
intends to achieve the project objective through the following:
Supporting the establishment of a regulatory framework;
Creating financial incentives in the form a feed-in tariff to
complement already-existing incentives under the Investment Act.
The project will analyse existing and possible incentives and
propose to the Government appropriate incentives for
implementation;
Establishing a technical knowledge base and cadre of experienced
professionals to support the development of wind power
projects.
75. The project will play a critical role in creating a market
that does not presently exist and supporting it through a nascent
stage to the point where it is self-sustaining and able to respond
to the needs of the Government, financiers and IPPs.
2.5. Country ownership: country eligibility and country
drivenness
76. According to the Instrument for the Establishment of the
Restructured Global Environment Facility, Sudan qualifies for GEF
financing on the following grounds:
It has ratified the UN Framework Convention on Climate Change;
and
It receives development assistance from UNDPs core
resources.
77. The objective of the project is consistent with the
strategies of the Sudanese Government, particularly as outlined in
the Renewable Energy Master Plan (2005). The project will provide
the basis for Sudan to initiate the development of a NAMA to
support renewable energy. It will thus provide Sudan with the
opportunity to reinforce its engagement with the international
climate change architecture and demonstrate its commitment to
international efforts to reduce GHG emissions.
78. UNDP has considerable experience in deploying policy
instruments to de-risk renewable energy investments in developing
countries.[footnoteRef:36] The project will be a direct application
of UNDPs work in this area. [36: UNDP (2013), Derisking Renewable
Energy Investment.]
79. Sudan has already demonstrated strong country drivenness in
implementation of its power projects as recognition of the critical
role they play in the development of the country. This has been
true in particular of its hydro-power projects. The same can be
expected for wind power projects as today they represent not only a
renewable source of power but also a source of national security by
diversifying energy supply and reducing the reliance on fossil
fuels.
80. The GEF Operational Focal Point for Sudan endorsed the
project with a letter signed on February 14, 2011.
2.6. Cost-effectiveness
81. The GEF financing for Outcome 1 (US$2,391,864), represents
the bulk of the GEF financing for the project and has been
allocated to support the development of the Dongola wind farm as
Sudans first wind project. The development of Dongola is seen as
the most critical step in launching wind energy in Sudan. Success
at Dongola will translate to future projects, while a failure at
Dongola will setback wind power in Sudan by several years. The
current lack of experience and resulting shortcomings in some of
the preparatory studies for Dongola indicate that UNDP-GEF support
will be critical in bringing the implementation of Dongola up to
international best practice.
82. The GEF financing for Outcome 2 (US$377,410), will consist
of grants for technical assistance, which will support the further
development of regulations, technical requirements for grid
connection, a feed-in tariff, and a centralised one-stop-shop to
support the development of wind energy in Sudan. Together, these
initiatives are expected to foster a regulatory environment for
attracting investments for privately-owned, grid-connected
renewable energy power generation and for facilitating effective
monitoring, quality control and dissemination of the results of the
investments made.
83. The GEF financing for Outcome 3 (US$420,000), consists of
technical assistance to strengthen the support for wind technology
and the delivery of such support. This includes the creation of a
wind atlas, overlaid with other geographical information, as well
as the development of a well-trained cadre of competent wind
professionals in Sudan who are expected to serve as the core of
future wind projects.
84. The GEF financing for Outcome 4 (US$180,000), consists of
technical assistance to ensure the documentation and dissemination
of experience from Dongola, as well as the interaction of
professionals from Sudan with others in the region, to further the
experience gained and support the integration of wind power in the
East African Power Pool, of which Sudan is a member.
85. The proposed project is extremely cost-effective as it will
utilise relatively limited GEF funds to leverage almost $214
million of co-financing (a co-financing ratio of over 60). In the
absence of the UNDP-implemented, GEF-financed project, the wind
farm would be built but not according to best practices and with
greatly reduced potential for replicability and efficient
performance. If the project were to focus solely on policy issues
it would risk being irrelevant without a concrete demonstration and
opportunity to use this demonstration as a learning vehicle for
future projects. The cost-effectiveness of the project is reflected
in its very low GHG abatement cost - less than $2/tCO2.
2.7. Sustainability
86. The savings in fuel from grid-connected thermal electricity
plants are comparable to the levelised cost of generation from wind
power. Wind power is therefore competitive with Sudans current
marginal cost of thermal generation and can be expected to relieve
some of the need for fossil fuels. Sudan can, therefore, realise a
cost saving by operating a wind power plant in place of a current,
average, grid-connected fossil fuel plant.
87. Once the implementation of the initial phases of the Dongola
wind farm has been successfully completed and demonstrates outputs
as anticipated, it can expected that other planned wind projects
(e.g. the Red Sea sites, Khartoum and N