Decentralized Rural Energy Project

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Category: MCF

Summary of the Togo Decentralized Rural Energy Project Concept focusing on private sector solar PV adoption.

The Decentralized Rural Energy Project in Togo aims to promote the adoption of renewable energy, specifically solar photovoltaic (PV) technology, by supporting privately-owned and operated supply and service companies in rural areas. The project seeks to remove key barriers, including insufficient information about the real PV market, high risk for rural credit providers, limited technological know-how and institutional capacity, and inadequate regulations. Key project components and activities include the installation of at least 125 kW of PV electric systems, the establishment of private PV installation and service companies, the development of codes of practice and standards (specifically a PV Code of Practice), and strengthening the capacity of the Agence d’Electrification Rurale (AER) to monitor and regulate private sector activities in the rural energy sector. Training programs are planned for PV technicians (accreditation), consumers (multi-media awareness), and the project team (project management, utility regulations, assessing private operator performance, and enforcement of the PV Code of Practice and agreements of the lease). Information sharing and dissemination mechanisms, such as thematic group activities and potential study tours/meetings, will be explored. Community and NGO participation will be detailed during project preparation, involving workshops and a participatory approach based on self-selection following information campaigns. The project primarily affects the rural energy sector, private sector companies involved in PV supply and services, rural credit providers, communities, NGOs, and the government agency Agence d’Electrification Rurale (AER). Specific project deadlines or compliance dates are not provided in the text. Activities are described as occurring "during planned project preparation activities" and a workshop is planned "in the course of this FY". The project is expected to result in reduced CO2 emissions totaling 13,000 tons over 15 years. Regulation and statute names mentioned include the GEF policy on public involvement, the development and enforcement of a PV Code of Practice, utility regulations, and agreements of the lease.

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Full text:

ANNEX 3
TECHNICAL REVIEW
TOGO
DECENTRALIZED RURAL ENERGY PROJECT
ANNEX 3
Page 1 of 10
Response to STAP Reviewer Comments:
The World Bank-GEF Project Concept Document is an upstream presentation of a project under preparation and
also limited in length and detail. As such, a number of the STAP reviewer comments relate to elements of the
project which exist or will be further developed during advanced project preparation and detailed in final project
documentation. Specifically: administrative, coordination and communication details will be provided in a project
implementation plan and an annex which summarizes social analysis and agreed participatory approach as it relates
to the GEF policy on public involvement.
The following responses relate directly to STAP Reviewer comments - and have been largely incorporated
into the revised project text.
Community and NGO participation. Participation and role of communities and NGOs will be further detailed
during planned project preparation activities. A workshop is planned in the course of this FY to gather national
stakeholders/PV entrepreneurs in order to collect their inputs about design and implementation aspects. Findings
will be incorporated into a participatory approach document which will detail procedures relating to transparency
and inclusion of communities and NGOs. Project design is strongly participatory in that participation of
communities is based on self selection preceded by extensive information and awareness campaigns.
Training and information dissemination. Cross-fertilization would be carried out in part through the Bank
thematic groups activities. The Bank's Thematic Leader for Renewable and Rural Energy, will be consulted for the
organization of the "small meeting, potentially in conjunction with Village Power '98, for project participants from
not only the Togo Decentralized Rural Energy Project, but also other similar efforts elsewhere (e.g. the Benin
Decentralized Rural Energy project, the PV projects in Mexico, Indonesia, and Zimbabwe, and with PVMTI
participants)." Some project funds would also be allocated to address the suggestion of a study tour as provided in
the comments: "...a fact-finding trip to East Africa, or a reciprocal visit by members of the PV industry there
(Kenital, Kenya Solar, Total Solar, etc.) could be a cost effective and important investment." Additional
mechanisms for sharing and dissemination of data will also be explored during project preparation as part of the
technical assistance components.
Training and information programs are programmed in the following areas: (a) accreditation for PV technicians (see
Table 6 of Annex 1); (b) Multi-media consumer awareness programs (see Table 6 of Annex 1); and (c) project team
training in project management and utility regulations. The main idea is to train the project team how to assess the
performance of private operators and in enforcement relating to the PV Code of Practice and the agreements of the
lease contract signed by the private operators. Additional training needs and information dissemination mechanisms
will be explored during project preparation as part of the information campaigns and training component.
Option to lease. The project proposal is consistent with the STAP Reviewer's emphasis on the importance of
option to lease systems.
Lanterns vs. solar home systems. Surveys undertaken during project preparation determined the type and size of
the systems in which the target markets were strongly interested: 20 and 50 Wp SHS were preferred because of the
possibility to have at least 2 to 4 lighting points and/or a radio and television. However, it was agreed that there was
ANNEX 3
Page 2 of 10
a potential market for lanterns in the poorer section of the target zone. To deal with this situation, the project will be
designed so as to assist private operator to have a 20 and 50 Wp customer base large enough to allow him to carry
lanterns. In this manner, private operators can develop the lanterns market on their own and provide the servicing
without any additional support.
Quantification of health benefits. An economic analysis, which will look at as many parameters as possible, will
be carried out as part of the advanced project preparation

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Original Source