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									             Global Environment Facility
         United Nations Environment Program
            Medium Sized Project Proposal


 Building Sustainable Commercial
        Dissemination
Networks for Household PV Systems
         in Eastern Africa

Using Shared Experiences to Help Companies
      and Consumers Develop Markets




               Final Version (6)

                    Nairobi. Kenya
                        June 2004



                      Submitted By

     Energy for Sustainable Development AFRICA, Ltd.
                   PO Box 76406 Nairobi
              Telephone: 254-2-577942/575902
                   mhankins@esda.co.ke
                                                   Energy for Sustainable Development, Africa


PROJECT SUMMARY

Project Identifiers
1.     Building Sustainable Commercial              2.       GEF Implementing Agency:
Dissemination Networks for Household
PV Systems in Eastern Africa;                       UNEP

   Country/ies in which the project is             4.      Country eligibility:
    being implemented:
Kenya                                               Kenya: 30 August 94
Tanzania                                            Tanzania 17 April 96
Uganda                                              Uganda 8 September 93
Ethiopia                                            Ethiopia 5 April 94
Eritrea                                             Eritrea 24 April 95

5. GEF focal area(s), and/or cross-                 5. Operational program/Short-term
   cutting issues:                                     measure:

Climate Change                                      Operational Program 6: Removing barriers
                                                    and Reducing Implementation Costs to
                                                    adoption of Renewable Energy. The
                                                    project will share successful commercial
                                                    experiences and experiences of GEF PV
                                                    projects (including UPPPRE Uganda, ERT
                                                    World Bank Uganda, PVMTI Kenya,
                                                    UNDP-GEF Tanzania and WB-GEF
                                                    Ethiopia)

7. Project linkage to national priorities, action plans, and programs:
All of the countries proposed have stated explicitly in their energy policies and development plans
that rural electrification is part of their national priorities. Government officials have welcomed a
project building the commercial development of PV. In 4 of the countries GEF efforts to develop
the PV market have begun or are in the planning stages.

Eritrea.
The sufficient, reliable and sustainable production and supply of affordable energy throughout
Eritrea is the main objective of the Ministry of Energy and Mines in the energy sector (MoEM,
1997). The general policy is to provide energy services based on a diversified supply of energy
sources. The policy aims at improving the living standards of the population through the provision
of affordable energy. It goes on to state that the implementation of the policy must be mindful of
the desire to halt, and in some cases, reverse the recent trend in environmental degradation,
including climate change causing green house gases.

Solar electricity is mentioned in policy documents as one of the environmentally friendly sources of
lighting for households. Policy documents mention a policy goal ”To exploit the potential of
renewable energy sources when the development is economical or when it complements the
Government's social policy.” Much of the solar energy work is carried out by the Energy Research
and Training Center of the Ministry of Energy and Mines (Habtetsion and Tsighe, 2001). The
section below (from Habtetsion, 2001) lays out how ERTC is mandated to carry out this policy:

The Energy Research and Training Center will continue to be supported in order to become a
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center of excellence in its research, training and promotional activities in renewable energy
technologies, its specific roles being to:

   Collect data on energy needs and develop and maintain a data base of the geographic
    variations and potentials, and the climatic conditions conducive to renewable energy
    exploitation;
   Collect data on existing renewable energy technologies, including list of manufacturers and
    design an energy information system that can combine socio-economic data with
    technological and energy source potential information to enhance planning activities;
   Assess existing and new energy technology products and processes for suitability and
    effectiveness, and, when appropriate, adapting to meet local needs, rather than developing
    new products and processes;
   Offer various training programs for technicians in the energy sector;
   Promote public awareness of the potential of efficient energy appliances and processes and
    offer advisory services on renewable energy technologies;
   Identify and promote local business opportunities in the design, production, installation and
    maintenance of renewable energy products and processes;
   Provide an initial repairs and maintenance service to renewable energy products and
    processes, until such times as the private sector can fulfil that role.

International co-operation and support will be stimulated for the development and installation of all
renewable energy sources.

Over 500 kWp of PV has been installed; virtually all of this is by donors and a Government energy
center. There has been a number of training courses and installations, to raise awareness and
bring about promotions, mostly coordinated by the Government energy center (which also
maintains many of the country’s PV systems). IGAD conducted a market study for commercial PV
solar home systems, a national stakeholder’s awareness workshop and an exchange visit for
Eritrean entrepreneurs to Kenya.

See the bibliography and stakeholders report in the Annex for more details.

Uganda
Uganda faces significant constraints to its continued rapid economic recovery because of the lack
of adequate electrical power to meet economic and social demands. Less than 5 percent of
Uganda’s population is served by the Uganda Electric Board (UEB), the national state utility that
maintains and operates the national grid. Just over 85 percent of Uganda’s population reside in
rural areas. Fewer than 15,000 rural households are connected to the grid, considerably less than
1 percent of Uganda’s rural population. Due to demand and pressure, UEB and Energy
Department of the Ministry of Natural Resources is promoting the expansion and diversification of
its rural electrification program.

The strategy adopted by the Government’s Energy for Rural Transformation project (co-financed
by the World Bank and other partners) is to provide energy services to rural people (1) using least
cost methods (possibly with a one-time subsidy) and (2) using the private sector as a vehicle for
the delivery of energy. Policy papers explicitly mention PV as a key energy source for those
portions of the rural population, which are uneconomic to connect to the grid (see Uganda ERT
Project Appraisal Document).

The $1.2M UNDP-GEF Uganda Pilot Photovoltaic Project for Rural Electrification (UPPPRE) is
close to winding up. The project conducted a number of technical courses for PV businesses, put
in place a pilot finance program for companies and helped organize the industry into a working
group (Uganda Renewable Energy Association). However, the project did not adequately address
the need for linkages between Kampala and rural target areas, and the proposed project will build

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on the work of the previous project.

The Energy for Rural Transformation project has been approved by Uganda parliament, and
includes a considerable PV component. The proposed project will collaborate with this project by
assisting companies to develop their sales outreach programs. The project will invite major
stakeholders from to the project to participate in project activities. Further, it will, in policy and
outreach activities, promote associated elements of ERT’s program, including smart subsidies for
PV and co-financing of PV companies. In the target district (Rakai and Kalangala) it will assist
companies to promote the ERT project benefits at grassroots levels. Further, it will share the
successful elements of this program with other countries (especially the results of the smart
subsidies in market development.

See the bibliography and stakeholders report in the Annex for more details.

Tanzania
During the 1990s a profound transformation of Tanzania’ economy was initiated. Macro-economic
restructuring and liberalization, as well as political and social reforms were initiated, of which some
are still under implementation. The newly established Energy and Water Utilities Regulatory
Authority (EWURA) is now revising the Electricity Ordinance and will prepare a bill for
deregulation, licensing for Independent Power Producers, regulations, for unbundling of electricity
sector into private generation, transmission and distribution utilities. In order for the energy policy
to comply with the new framework of macro-economic policies and structural changes in the
energy sector, the 1992 National energy policy was revised in 1999 and completed in 2000. The
policy has been under review by various stakeholders and cleared by the Inter-Ministerial
Technical Committee and is now awaiting Cabinet approval.

In section 76, the policy paper acknowledges that utilization of solar energy in the country is still in
its infancy. It makes a number of references to the use of solar PV and renewable energy in the
provision of rural energy needs. New energy policy includes the establishment of
 “A “Rural Energy Fund” to meet the financial constraints of the rural energy supply, including
     renewable energy and rural electrification”.
 “Promotion of entrepreneurship and private initiative in the production and marketing of
     products and services for rural and renewable energy”.
      Ensure continued electrification of rural economic centres and make electricity accessible
         and affordable to low income customers.

In Tanzania, a number of small initiatives have been conducted (mostly by NGOs) to promote PV
(i.e. the Karadea Solar Training Facility). However, the size of the country and the isolation of
many of the high potential areas (Mwanza, Mbeya, etc) have prevented development of the
industry. The Dutch Government has approved a $500k two year project that will assist the
development of joint Dutch-Tanzanian company. This company, Umeme Jua Ltd., has received a
loan from the Triodos Renewable Energy for Development Fund , and expects to fully cooperate
with the project.

As well, UNDP-GEF is currently developing a PV initiative targeted for Mwanza and the lake
region, and World Bank ERT has made initial contacts with the Tanzanian Government to
establish a program similar to that of Uganda in Tanzania. Further SIDA has developed a multi-
million dollar project aimed at building commercial infrastructure for PV. This GEF project will
bring regional and international players to the Tanzania market, and help them to take advantage
of the new PV projects and the emerging Tanzania market.




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       1
Kenya
Kenya provides one model for commercial PV development. The industry has a strong private
base, active promotional activities and creative sales – Kenya’s market has consistently stayed at
about 500 kWp per year since 1998 (this is worth over US$6 million). Over 150,000 households
(3% of the rural population) have a solar system. Other PV installations in the country include
several hundred PV water pumps, institutional power systems, electric fencing, communication
systems, and health center fridge systems. Real progress is being made in building sales to less
affluent groups through customer credit and competitive pricing. Presently installed PV systems in
Kenya (>3 MWp) displace on the order of 15000 tonnes/CO2 per year.

In the region, the Kenya government has had the most proactive PV policy in the region (even if it
is “hands-off”). Government policy statements since the early 1980s have consistently encouraged
increased use of PV electricity. The government added solar energy to its entire national education
syllabus in the late 1980s. It removed the 45 per cent duty on photovoltaic (PV) equipment in
1986. Unfortunately Government re-introduced duties and value-added tax (VAT), albeit on a
lower level, on PV equipment in 1991 in a bid to increase government revenue.

PV systems continue to sell in the thousands. However, applying import duties and VAT on solar
systems is still arbitrary due to the ambiguous definitions of equipment and components set out by
the Ministry of Finance. The problem is compounded by the lack of quality control and code of
practices for PV systems and systems component. The government is in the process of
addressing the above problems as it has just received a World Bank-funded report which:
  recommends an appropriate taxation regime for solar PV systems, components, spare parts
    and accessories
  recommends quality and service specifications and guidelines for solar PV systems and
    equipment, and
  recommends a mechanism for their implementation and dissemination. This report entitled
    “Study on Solar Photovoltaics (PV) Quality and Service Specification and Market Penetration”
    was presented to the Ministry of Energy in August 2001. Among others, the report
    recommends the use of rural electrification fund to further promote PV electricity in the rural
    areas.

The IFC/GEF PVMTI project in Kenya (US $5 million) has introduced new methods of financing
solar electric systems to address customer inability to pay high up-front costs for systems. The
program is anticipated to finance 5 million dollars worth of PV systems between 2001 and 2002,
but thus far no loans have been issued. PVMTI will test the potential for finance arrangements
with solar home systems, and it is likely to open up a wider market. The project is targeted to
address the needs of large companies, but is not addressing demand at local (i.e.
community/district) levels. This project will cooperate with PVMTI by seeking to link up new
markets with the finance sources that PVMTI is bringing to the table. It will also help the
successes of PVMTI to be replicated in other countries.

See the bibliography and stakeholders report in the Annex for more details.

Ethiopia
In 1994, the Government issued a new national energy policy intended to pave the way for
                                2
privatization of energy services . It was also intended to move consumers from consumption of


1
  In this proposed project, Kenya will be a source region, rather than a target region. Positive (and
negative) experiences of the Kenya PV experience will be shared with the other countries. Kenya will
benefit from the project through the projects’ sharing of other country developments and through expanded
access to markets of Kenyan companies.
2
  IPPs up to 25 MW are now, theoretically, allowed to operate, though there is no experience.
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traditional sources of energy to more modern ones, to “alleviate prevailing energy generation,
supply and utilization problems”, to make energy supply more dependable and to reduce any
environmental degradation caused by use of traditional and conventional fuels. In 2001-2002, the
Ethiopian Government went through a process of reorganization, resulting in new operational and
policy approaches to rural electrification.

Up until 2001, strategies for rural electrification were limited to grid extension and isolated
generator sets in rural centers. Like many African countries, Ethiopia has been late to actively
incorporate the use of renewables into rural energy or electrification programs. EREPDC is the
Government department charged with non-grid rural energy development and promotion.
However, now the newly created Ethiopian Electricity Agency regulates implementation.

In March 2002, a new draft rural electrification strategy was unveiled. The draft links rural
electrification with rural development priorities. It relates provision of electricity with agriculture,
health, education, water supply and promotion of the private sector, NGOs and community groups
in rural areas. It provides a strategy basis for parts of RE program, including for institutional,
technological, capacity building and financing. It also lies out how a Rural Electrification Fund
would be created and administered, and its interface with a Government RE unit, users
committees and EEA.

As well, over the last 2 years, there has been a growing awareness among policy-makers and
Government executing agencies about the role of renewables in power supply. There is general
agreement that solar PV will play a role in rural energy development. Lessons from the IGAD
household energy project have re-enforced this.

In Ethiopia, there has been little “formal” commercial development work with PV. An IGAD project
has conducted a number of activities to stimulate awareness and activity. These include 1) a PV
market survey, 2) technical courses for equipment manufacturers and installers 3) business
awareness meetings and 4) pilot installations for awareness raising in a high potential areas. The
pilot work in Awasso (southern region) has resulted in the commercial sales of several score of
systems, and results indicate that there is considerable repressed demand for PV among
households in the country.

A GEF project, under a much larger World Bank-supported program is proposed which will remove
identified barriers through a combination of policy reform, mass promotion of technologies, and
price reductions. A competitive market model for the dissemination of MHP and PV systems is
proposed. The PDF-B grant proposal specifically mentions the role that this proposed UNEP-GEF
project would play in strengthening its impact.

See the bibliography and stakeholders report in the Annex for more details.


8. GEF national operational focal point endorsements (see attached letters in
separate file)

Eritrea
Mesghena, Tekleab
General Director
Department of Environment
Ministry of Land, Water and Environment

Ethiopia
Egziabher, Tewolde Berhan G.
General Manager

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Environment Protection Authority

Kenya
K. Omudho, Benard O.
Director
National Environment Secretariat
Ministry of Environment & Natural Resources

Tanzania
Rajabu, A.R.M.S.
Permanent Secretary
Vice President's Office

Uganda
Kassami, Chris K.
Permanent Secretary
Ministry of Planning and Economic Development


9 Project Objectives and Activities
Project rationale

Throughout East Africa, there is demand for modern electricity services from rural-based
consumers. However, grid-based power has reached less than 5% of rural households and small
market places in East Africa, and consumers are forced to pay extremely high rates for poor power
services (i.e. dry cells, kerosene, generators) because they have no other alternatives. The un-
electrified rural population constitutes a demonstrable, quantifiable demand for the electrical
services that solar PV can often provide.

Where household energy demand is low and homesteads are not located close together (i.e.
where rural electrification is not practical), PV is often a cost effective way to provide power for
lighting and amenities. The most sustainable and viable method of delivering solar PV products
and services to rural markets is through the private sector. However, in many parts of East Africa,
neither rural consumers nor key delivery agents are aware of the potential of the technology.

Among companies, consumers, decision-makers and other stakeholders, a lack of understanding
of the role solar PV in rural electrification is a primary barrier to the development of the industry.
There are a number of successful East African experiences in the development and dissemination
of PV, both commercial and technical from which the rest of the region can learn. For example,
Eritrea has among the highest installed PV capacity per capita in the world, while Kenya has
thriving commercial markets for PV. Meanwhile, Uganda, Ethiopia and Tanzania are set to
embark on large GEF-funded PV projects. As these countries develop projects, it is important that
they exchange experiences and learn from one another to avoid costly mistakes.

This project will show how properly developed linkages between companies, consumers and
communities can result in self-perpetuating markets for solar technology. In four countries, the
project will strengthen the private sector’s ability to supply small PV systems to commercial
markets in targeted districts. Replacing kerosene and petroleum-fueled grid expansion with PV
can displace significant amounts of CO2 emissions and provide a “clean development” future.

This project will build linkages between consumers and institutions on the one hand, and suppliers
and installers of PV systems on the other. It will build awareness of the existing market for small
PV systems in selected areas in each of 4 target countries. Through promotion and training
activities focused in target regions, the project will assist stakeholders to develop sustainable

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commercial supply chains. The project will benefit:
 household consumers by providing them with competitively-priced alternatives for electric
   power
 national solar companies, installers and sales agents by helping them develop commercial
   business that will grow after the project
 institutions and small businesses by making available power systems for lighting, pumping,
   refrigeration and ICT power.
 policy makers by enabling them to see how other countries in the region and elsewhere in the
   world have built enabling environments for the PV industry
 regional and international solar PV suppliers by providing them information about markets and
   players in each of the countries.

Finally, and perhaps most critically, the project will provide needed investment to growing
companies to enable them to become sustainable enterprises. As part of its existing plan, Triodos
Renewable Energy for Development Fund (TREDF) (formally Solar Development Foundation)
seeks to invest $400,000 or more over the course of the project in companies which have the
qualities necessary to prosper in the market. Much of the work of this project will revolve around
selecting and supporting these companies, as well as others now emerging. Triodos Renewable
Energy for Development Fund (TREDF) investments will ranging between $20,000 and $100,000
or higher, depending on the capacity of the company to absorb and repay the investment, the risks
of the loan and the decisions taken by the TREDF board (which will have the final word in all
investment decisions). The over-riding purpose of the TREDF loans is to invest in growing
companies with soft loans, and to provide them with basic assistance, so that they can become
more attractive for equity investment in the future.

It should be noted that all TREDF decisions are made by the TREDF board, and that this project
will not be able to make final decisions about loans for companies. It will be able to facilitate
introductions and the development of agreements between companies and TREDF, and it is
hoped that the Regional PV project will result in $400k of additional TREDF investments. Further,
the project will be able to provide TREDF clients with technical support, in addition to other
beneficiaries.

See Annex for a description of the TREDF programs.

During the PDFA activity, stakeholder workshops were held in each country to introduce the
project and to solicit ideas on the development of the project. As well, stakeholders selected the
districts in which the project would work based on the following criteria:
 Regular incomes from agriculture, mining, etc.
 High population density
 Accessibility of district for businesses
 Low grid expansion rate
 Demand for radio, TV and light

The selected districts were are follows (see Workshop reports for each country for details):
Uganda: Rakai and Kalangala
Tanzania: Iringa
Eritrea: Mendifera
Ethiopia: Jimma

There are a number of other projects in the region, both active and planned that can be
complimented by this project. The project will endeavor to ensure co-operation and exchange of
information throughout the duration of the project. These were discussed in the previous section.
In particular the project will collaborate with the UNEP/GEF Renewable Energy Enterprise
Development project as described below.

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Linkages to the Proposed REED Project
The project will cooperate closely with the proposed UNEP/GEF Renewable Energy Enterprise
Development project. The REED project, as proposed, is targeted to assist in the development of
renewable energy enterprises. It will be active in a number of African countries; Tanzania is the
only one with which this project overlaps. Unlike the proposed Regional PV Commercialization,
the REED project will focus on a number of renewable energy technologies. However, it is similar
in that it proposes to help build business infrastructure, and works from the premise that building
renewable energy businesses is a key method of promoting renewable energies.

The proposed Regional PV Commercialization project will work closely with the REED project.
First, upon approval, the project managers of the Regional PV project will meet with the managers
of the REED project to discuss how the efforts can strategically assist one another and avoid
duplication of efforts (the results of this meeting will be provided in a report). Secondly, the
Regional PV Project will utilize the business training material that has been developed by REED
and AREED in its business training packages. Thirdly, the Regional PV project will actively invite
companies with which REED is working with the participate in training activities and conferences,
particularly in Tanzania where the REED project will have activities. Finally, the Regional PV
project will be able to assist REED PV entrepreneurs with specific information about PV as
necessary, and to introduce them to Triodos Renewable Energy Development Fund, should they
be in need of financing.


Objectives:                                            Indicators:

The overall objective is to stimulate increased               Increase in activity, number and
rural sales of PV by increasing consumer                       diversity of national companies active
awareness and by sharing experiences between                   on national basis in each country
commercial markets and projects in region.                     (target is to move from 3 to 5 in Eritrea,
                                                               from 3 to 6 in Ethiopia, from 5 to 8
Other objectives are to:                                       major players in Uganda and from 3 to
 Select, prepare and make investments in 5-                   6 in Tanzania). NB Work focus will be
   10 PV companies with $400,000 of Triodos                    to increasing capacity and linkages
   Renewable Energy for Development Fund                       between rural and urban dealers and
   finance This target investment $400,000 is                  international and national dealers.
   for the region as a whole.
 Build linkages between East African country                 Increase in number of PV dealers,
   PV sector stakeholders, including                           technicians active at target district
   companies, dealers, NGOs, rural energy                      level. Two dealers to stock PV in each
   projects and international companies.                       of the 4 target districts, 10 technicians
                                                               to be involved in PV installation in each
   Increase involvement of international PV                   target district. 5 sales people to be
    companies in the region by building                        involved in each target district.
    awareness of potential markets, linking
    them with local players                                   Increase in number of small solar PV
                                                               systems sold and availability of
   In each country, assist to develop market                  equipment in target regions. At
    linkages between the major commercial                      present, PV is not available. Target is
    center (Addis, Asmara, Dar, and Kampala)                   to make PV available in a minimum of
    and a selected rural district. In each district,           2 shops in each district.
    to increase awareness of PV among
    consumers, suppliers, sales agents and                 
                                                        $400,000 approved by TREDF board
    technicians.                                        and invested in companies in the 4
                                                        countries. Investments will be made in
                                                        a minimum of 5 companies (NB. This
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   To develop local capacity to sell, install and          outcome is subject to TREDF Board
    service PV systems.                                     approval and not within the scope of
                                                            the project)




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   Project outcomes:                                    Indicators:

An operational commercial delivery route in                 Increase in numbers of importers and
place between the capital city and one rural                 linkages of importers with target regions.
district of each country. This will include:                 target is to move from 3 to 5 in Eritrea,
• at least one national importer,                            from 3 to 6 in Ethiopia, from 5 to 8 major
• several dealers in the target district,                    players in Uganda and from 3 to 6 in
• at least ten technicians and sales agents in               Tanzania). Companies will sell a total of
the target district,                                         $400,000 value of equipment to target
• interested community development NGOs                      areas over the course of the project.
• interested micro-finance groups and
• hundreds of potential PV customers                        Increase in numbers of dealers of PV and
                                                             12VDC equipment at local level from zero
Educated PV businesses in cities of each                     to a minimum of two stockist/dealers per
countries that are actively seeking to develop               district
commercial rural markets
                                                            Increased in numbers of trained
A network of influential policy makers --- who               technicians and sales people involved in
are aware of the necessity of including PV in                PV installation in target regions. 10
rural electrification plans and will actively lobby          technicians to be trained in PV installation
for such plans.                                              in each target district. 5 sales people to be
                                                             involved in each target district.
Increased participation by international PV
companies in the PV markets of Uganda,
Tanzania, Eritrea and Ethiopia.                             Increase in number of collaborating finance
                                                             groups interested in developing finance
As a direct result of project activities, installation       schemes for PV and sustainable rural
of more than 750 PV solar home systems in the                energy. Target is one pilot finance
targeted districts, and a measurable growth in               program in place in each target district with
the rural PV sales in Uganda, Tanzania, Eritrea              a total loan value of $50,000. At present
and Ethiopia. Five years after the project, we               there are no PV loan programs in place.
expect that 3000 systems will have been
installed in the 5 districts.                               Increase in numbers of systems sold.
                                                             Project targets combined sales of 750 PV
The project will reduce carbon emissions from                systems (SHSs) in 4 target districts over
kerosene lanterns in 4 districts. From systems               period of the project, worth a total of over
installed within the project timeframe, a relatively         $400,000.
small amount of reductions would be
experienced (i.e. <300 tonnes/year per district).           Increased levels of transactions between
However, there are two points that need to be                importers, manufacturers and distributors
considered: a) if each of the PV sectors                     active at the national level and regional
continues to grow sustainably, within 5 years the            businesses. Target is a total of $400,000
4 target districts would have a combined                     worth of business in the target districts, and
cumulative CO2 displacement of almost 6000                   increase of 80%.
tonnes from 3500 installed systems. b) If the
companies applied the methods learned to other              Numbers of policy makers that attend
districts, we would expect the CO2 displacement              workshops
to be 5-10 times that experienced in the target
districts. Ethiopia would be likely to surpass              Actual changes in duties, taxes, or policies
Kenya’s present level of 15,000 tonnes/year                  towards PV/rural electrification in target
displaced due to PV systems                                  countries. Documents forwarding the
                                                             harmonization of policies in the region.

                                                            Number of relationships between

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                       international traders and target countries.
                       Direct communication between
                       international PV companies and
                       national/urban based PV dealers.

                      Reduced carbon emissions from kerosene
                       lanterns (2400 tonnes CO2 displaced over
                       period of the project). Much larger
                       amounts due to spillover affects of the
                       project.




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   Planned activities to achieve outcomes           Indicators:

Activity A: Management and Technical Support
A management team will be put in place to lead       Team identified and in place to manage project
the project over its two-year duration. The team     in each country. All contracts, ToRs and
will consist of a project director (25% time), a     agreements prepared.
project field manager (100% time), 4 in-country
consultants for each country (25% time) and a        Final work plan prepared.
technical team. For other activities, assistance
will be out-sourced.

The project management team will make regular
trips to the participating countries. As planned,
the team will visit each country 8 times over the
course of the project (i.e. once per quarter).
The management team will be experienced in
the PV industry, and will, in addition to running
the day-to-day activities of the project, serve as
facilitators who are able to provide both
technical advice and business assistance to
companies.

The management team will have the following
responsibilities

        Identification and hiring of consultants,
        promotion agents, and other project
        related assistance in each country

        Production of site specific work plans.

        Day-to-day management and
        coordination of the project.

        Technical input as required.

        Interface of project with private sector,
        multilateral projects, GEF-UNEP.


TOTAL COST:            $334,740
GEF Contribution:      $334.740
TREDF Contribution:         $0
Company Contribution $0
Activity B: PV SHS Trade Fair and Project Kick
Off Meeting

A meeting will be held in Nairobi at UNEP to         Meeting report prepared which contains:
examine progress and prospects for PV in rural           Analysis of PV experiences in each
electrification in East and Southern Africa,                country so that there is complete
focusing especially on commercial successes.                baseline data for the project.
Approaches used to develop rural PV markets in           Financing case studies
Africa and elsewhere will be explored. This will         SHS technology updates
be the first of 3 meetings (see below).                  Sales and marketing case studies

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The meeting will invite stakeholders from each                Policy report
of the participating countries, emphasizing the               Briefs on active solar PV projects in the
involvement of the private sector, including                   region
Triodos Renewable Energy for Development                      Lists of companies and products
Fund clients. It will look at the “state of the art”           available
of PV for SHS in the world and each
participating country. The 2 day meeting will
have workshops in the following topics:

   Financing. This session will examine
    successful models of SHS finance, and will
    present case studies.
   Technology. This session will examine
    types of equipment available for the SHS
    market, and present and future trends in
    equipment sales.
   Promotion. This session will present
    successful marketing and sales case
    studies from the region and elsewhere.
   Policy. Harmonization of duties and
    taxation, subsidies, and relevant
    Government policies will be discussed.
   Standards. There will be sessions on
    progress that each country (and/or project
    has made on standards as well as methods
    of harmonizing them regionally.
   Multilateral programs and their
    stakeholders. Presentations by WB (ERT-
    Uganda, Energy Access Project –Ethiopia
    and Mozambique and others) and UNDP
    Tanzania. Projects will be explained, giving
    role of PV in rural electrification. As well,
    the outputs and lessons of such programs
    as the UNEP-E&Co AREED initiative will be
    discussed.                                            Detailed project work plan produced and
                                                           distributed to project team (management,
The meeting will host a trade fair, inviting               consultants, partners)
interested companies to set up stands
demonstrating their products. It is hoped that a
meeting in Nairobi with participation from PV
companies all over the region would attract
major international PV and BOS suppliers.

At the end of this 2.5 day meeting, a one-day
project kick off meeting would be held with the
project team from each country to plan project
activities.

TOTAL COST:              $36,800
GEF Contribution:        $11,000
TREDF Contribution:        $17,000
Company Contribution $8,800
Activity C: Market Assessment in Target
Regions of each Country.

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                               Commercial Dissemination Networks for Household PV Systems
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To meet the objective of building capacity and
awareness at district level, the project will hold a
series of activities in each target district which
involve private sector stakeholders. The target
districts, as identified during stakeholders
meetings in each country are:

Target District/Regions
Uganda: Rakai and Kalangala
Tanzania: Iringa
Eritrea: Mendifera
Ethiopia: Jimma

A baseline survey for each country and market             Market report and study prepared for each
study will be conducted in each district.                  country. Copies distributed to companies
                                                           and organizations working in target
The markets study of each district will:                   districts.
 Identify population sectors willing and able
   to afford systems. Aggregation of demand               Meeting held in each country and target
   in kWp, projection of demand growth.                    district to discuss output and implication of
 Identify existing market and base of installed           market report.
   systems. Survey use of DC appliances and
   battery
 Develop market profile including SHS
   consumers, businesses, NGOs, etc.
 Assessment of system sizes demanded and
   demanded.
 Assessments of finance players in district
   and their interest in working with project.
   Development of relationships.
 Identification of potential outlets, sales
   people and technicians in target district.

During this activity, initial awareness raising
seminars about PV and 12VDC appliances will
be held

Local consultants will manage this activity.
Companies will be actively encouraged to                  Awareness seminar about PV and SHS
participate in this activity and to begin forming          held in each target area
relationships with agents and technicians.

TOTAL COST:           $11,880
GEF Contribution       $7,740
TREDF Contribution:           $0
Company Contribution:   $4,140
Activity D: Business Opportunity Awareness
Raising, Business Assistance and
Investments in Companies

This portion of the project will be financed and       TREDF trips to each country to meet
managed by Triodos Renewable Energy for                companies, introduce TREDF program, and
Development Fund -- in close collaboration with        shortlist viable companies

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the project team. The project will seek to
increase TREDF investment in the region by          One-on-one meetings with PV companies to
over US$ 400,000, through identification of 5 to    assess their capacity to absorb investment and
10 additional companies that would not be           grow
included in their portfolio. This investment will
be entirely dependant on (1) the financial          $400,000 invested in 5 to 10 companies in the
climate in each country, (2) the existence of       region by Triodos Renewable Energy for
viable companies (TREDF has already identified      Development Fund . Note that this is fully
a number) and (3) the approval of these             dependant on the approval of TREDF board.
companies by the TREDF board. It should be
noted that this investment has already been         Management and business development
mobilized and committed and that TREDF is           assistance rendered to selected companies
already actively seeking to engage companies
to build PV business. The efforts of this project
will complement the TREDF strategy by building
linkages upward (i.e. with international
companies), laterally (i.e. with regional
companies) and downward (i.e. into rural market
areas) in ways that are presently not being
done. This project will seek to “open the eyes”
of businesses to the potential and real markets
that are in rural areas.

The activity will raise awareness among
companies about the potential for PV SHS
business, particularly concentrating on
opportunities in each of the target districts. It
will be an interactive process focusing on
several major sub-tasks:

   Raise awareness among the urban
    business community of the potential of the
    PV market
   Present the results of the recently
    completed PV SHS survey
   Highlight viable business areas

Build business linkages among PV businesses
locally (i.e. with battery manufacturers,
appliance suppliers, etc.), “upward” (i.e.
regionally and internationally) and “downward”
(i.e. into the target district).

Provide assistance in the specialized nature of
the PV businesses

   Assistance to develop and execute business
    plans, particularly where the project is
    active.
   Management training

This activity will incorporate the experiences of
other organisations and activities, such as
REED, other PV projects and experiences.

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Triodos Renwable Energy Development Fund,
ESDA, and local consultants will develop
resource delivery methodology.

TOTAL COST:       $400,000
GEF Contribution: $0
TREDF Contribution: $400,000
Company Contribution: $0
Activity E: Technician and Sales Training

In order for PV to be taken up by companies in
the target district, a minimum level of technical
and sales capacity must be in place. Technical
and sales training courses will be facilitated in
each country, based on the priority needs of
each country and its stakeholders. These
courses will be held in the target districts,
involving local people and companies.

   Training of trainers sessions will be held in a          Training of Trainer course held in
    central location (one each for SHS technical              central location for SHS installation and
    training and SHS sales) with pre-selected                 PV sales. 10 trainers representing all 5
    instructors from each country. The purpose                countries attend.
    of the ToT will be to enable one or more key
    trainers from each country to be able to                 Training course manual and kits
    return to the country and conduct training                distributed to three participating
    courses.                                                  companies in each country.

   Basic installation training courses will be          One or more trainer with capacity to run
    held in each country using the instructors            sales and technical training in each
    trained in the above-mentioned ToT. The               country.
    purpose of these courses is to give private
    sector-based installers practical skills and         Basic installation course held in each target
    knowledge of SHS installation, design and             region (at least one course, though
    after-sales service. Technicians will be              individual companies may hold more)
    instructed on how to train end-user to                attended by 10 installers from target
    maintain and service systems as well.                 region.
    Participants will include installers, system
    maintenance and marketing personnel from             Sales and PV agent support courses held
    participating companies and NGOs. Criteria            in each country and in target region. At
    for participation in the courses will include         least 10 people from each target region
    (1) having minimal academic or experience             and participating companies attend.
    qualifications (2) likelihood of participant          AREED Business Information packages,
    working in target district after completing           developed under the AREED project, will
    course, (3) ability to contribute to cost of          be distributed at these sessions.
    course, (4) existing links with participating
    businesses. The local consultants and
    project officers will make decisions for
    choice of participants in training courses.

   Basic sales and marketing courses will be
    held with participating distributors and
    agents. This course will teach interested
    local agents about the SHS and PV
    technologies, methods of selling, displaying
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    and planning market programs.

The involved groups will be encouraged to
market and install systems, according to
business plans developed by companies in the
business training work. The training courses will
be synchronized with other elements of the
project to reduce travel costs.

TREDF has expressed a willingness to co-
finance some of this activity for selected
companies, though it is not included in the
existing budget. The project will also approach
other entities (companies, projects, etc. to seek
co-funding for these activities).

TOTAL COST:          $81,440
GEF Contribution:     $75,000
TREDF Contribution:          $0
Company Contribution: $6,440
Activity F: Country PV Trade Fairs and
Seminars
                                                      Meeting held in Uganda and attended by major
Over the course of the project, three                 stakeholders including 5 international PV
international “PV fairs” will be held (the first is   companies, GEF projects from Kenya,
the meeting in Nairobi described in Activity B) to    Tanzania, Uganda and Ethiopia, major
help regional companies refine their product          customers financiers, etc..
offerings on a local basis.
                                                      Seminar report prepared
   One meeting will focus on PV SHS and the
    variety of equipment available (to be held in     Meeting held in Tanzania and attended by
    Uganda). It will coincide with a regional         major stakeholders including the international
    meeting on PV policy (see Activity I)             PV companies, GEF projects, major customers
   One meeting will focus on local                   financiers, etc..
    manufacturing opportunities and consumer
    demand for PV appliances (to be held in           Seminar report prepared
    Tanzania)). It will coincide with a regional
    meeting on PV finance opportunities (see
    Activity J).

These meetings will provide opportunities for
international, regional and local companies to
interact, form business linkages, and learn from
each other. It is crucial that representatives of
the major PV companies, balance of system
suppliers and major projects are attracted to
these meetings.

These meetings will provide updates on
standards and code-of-practice development in
each country.

These meetings will give international and
regional companies full overview of active

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markets and projects. They will include:
 1 day formal presentations from selected PV
   companies and case studies
    1-2 days exhibition and individual
       meetings and demand driven side
       events (i.e. country meetings, project
       discussion meetings)

After one of the meetings the project will
conduct the sales training ToT (see Activity E).

TOTAL COST:           $46,300
GEF Contribution:     $22,800
TREDF Contribution:      $22,500
Company Contribution: $1,000
Activity G: Inter-Country Exchange Visits &
Information Exchange

The purpose of the exchange visits and
information exchange is to provide
entrepreneurs and other stakeholders with a
broad view of how various experiences and
projects have overcome market barriers. It is
proposed that visits be made to two countries
that have mature PV industries. Kenya and Sri
Lanka are proposed as viable models that              Visit to Kenya market held for 12 interested
provide important lessons but are distinct from       entrepreneur during “kick-off” meeting.
each other.

Regional Visits.                                      12 entrepreneurs adopt practices and ideas
PV entrepreneurs and key stakeholders from            encountered during visit
Uganda, Tanzania, Eritrea, Kenya and Ethiopia
will be invited on several day study visits to
learn how successful solar home system
markets developed and how they presently
operate. Key among these will be visits Kenya,
where there is a US$10 million PV market in
place. Entrepreneurs will visit consumers in the
field, regional agents in small towns, and
distributors in large towns, as well as key project
and NGO players. At the end of the visit, they
will have a clear idea of how the market
operates, as well as the positive and negative
aspects of the model. Study visits to the Kenya       Visit to acceptable country held 12 for selected
market will be made during the Kenya trade fair.      entrepreneurs.

                                                      Entrepreneurs adopt practices and ideas
International Visit                                   encountered during visit
A team of key players from the region will visit a
successful commercial PV market in an Asian
country (Sri Lanka is suggested). The trip will
focus on business models, consumer
relationships, warranty and QC issues, financing
schemes, industry associations, etc. The

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purpose of this visit is:
 To see how Asian companies have driven
    down prices and delivered equipment by
    concentrating on volume sales (Asian prices
    are much less than those of Africa)
 To critically assess how the private sector
    has worked with successful GEF projects,
    focusing particularly on how projects have
    built the market through use of quality
    control, industries associations, business        Information from the AREED business
    loans and micro-credit and subsidies and          experience will be circulated as part of this
    grant.                                            outcome.
 To examine how finance, policy, technical
    training, quality control, industry association
    formation and awareness raising has been
    done in these countries.
 To build business linkages between traders
    in Sri Lanka, Asia and Africa

Entrepreneurs will be expected to co-finance
their own hotel and DSA costs during the trip.

The project management team and TREDF
representative will select entrepreneurs for
international visits. Criteria for the selection of
participating entrepreneur will include:
      Demonstrated activity in PV business in
         the country
      Quality business plan/proposal for
         development of PV in their country
      Demonstrated ability to co-finance DSA
         and hotel expenses
                                                      Solarnet issues circulated to 100 additional
      Participation in the target district PV
                                                      businesses in the region with useful information
         development activities
                                                      about the industry.
      Demonstrated capacity and interest in
         building the PV market
                                                      Solarnet reports on country visits provided to
      Solid company financial base, including        project management.
         audited accounts, etc.

Information Exchange
Access to information is key for companies to
grow and expand their markets. The project will
provide participating companies with access to
technology information and finance information
through its regular activities.

Two year subscriptions of Solarnet magazine
will be provided to all participating stakeholders,
The purpose of the proposed activity is to use
Solarnet magazine as a vehicle for sharing
information about PV in the region. Solarnet
staff will produce regional supplements --- i.e.
additional material over and above the
magazines’ normal material --- 8 times over the

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course of the project. These supplements will
be coordinated with project activities as they
occur. They will explain project activities (as
well as other PV projects and initiatives) to
companies, finance groups, Government, and
NGOs. The proposed budget includes extra
funding to allow the magazine to reach 100
more stakeholders (i.e. over and above its
present subscribers).

Four of these supplements will focus on the PV
industry of the involved target countries
(Ethiopia, Eritrea, Uganda and Tanzania)..
They will contain lists of active players,
descriptions of markets, articles about
experiences unique to the country. They will
explain how companies and interested parties
can benefit from on-going activities. As
indicated in the budget, Solarnet magazine will
visit each country at an appropriate time to
research the status of the industry, to identify
stakeholders and to collect information about
on-going projects and opportunities.

The project will also distribute resources,
including the SDG PV Entrepreneur’s Handbook
and the AREED Business Planning guide.


TOTAL COST:            $58,850
GEF Contribution       $53,850
TREDF Contribution        $0
Company Contribution     $5,000
Activity H: Region-Based Awareness
Raising and Promotional Campaigns

The major barriers that the project is seeking to         At least 3 – 5 systems will be installed for
address in the target regions are a) the lack of           larger uses for awareness raising and
awareness of the SHS technology (as opposed                promotion (schools, video cinema, battery
to larger community systems) and b) the lack of            charging, etc) depending on the desires of
business infrastructure to deliver SHS and small           the community
PV systems to the target rural.                           A minimum of 30 PV systems installed in
                                                           each target (total of 120 in project) by local
To overcome these barriers, the project will work          companies and technicians. Maintenance
closely with entrepreneurs in the target area and          contracts in place for all systems.
at the national level to develop delivery through
existing outlets. A series of promotional activities
                                                          Over course of project, 750 customers
will be held in target areas that introduce and
                                                           purchase systems on a cash basis within
demonstrate PV SHS technology, get local
                                                           target districts.
businesses interested and provide an
opportunity for villagers to see, understand and
purchase solar home systems. At the same
time “awareness raising and promotional”
community or income generating systems (at a
“first-time” buyer discount) will be installed to
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provide awareness raising and promotion.
Companies and technicians (identified and
trained through the project) will be fully involved
in this campaign.

The promotion campaign will primarily use the
following mediums, depending on the needs and
preferences of each country:
 Drama: Short plays promoting solar home
     systems will be written and adapted for each
     country. Acting troupes will translate play
     into local languages, and train local actors
     to present it.
 Radio: Programs about solar will be
     created. Plays will also be adapted for
     radio. Support for radio campaigns will be
     sought from local companies.
 Brochures: General brochures promoting
     solar home systems as an alternative for
     rural electrification will be produced in local
     languages. These will be used on a
     national level (i.e. distributed by energy
     centers and by regional Governments) and
     as a key tool during the promotional
     campaign in target districts. The project will
     also distribute approved brochures supplied
     by participating companies.
 Banners and posters: Banners and/or
     posters will be produced to encourage use
     of solar home systems. These will be used
     during promotion campaigns and erected
     permanently in the villages.
 Each company will develop its own portable
     awareness raising and promotional exhibits
     during the project. These will be utilized by
     companies and technicians to exhibit the
     products each company has on offer.
 Each company will be encouraged to use
     any of their own promotional material during
     the project promotional campaign.

Even though PV is fairly well known at the
national level, it is still relatively unknown as a
consumer product at district levels in Ethiopia,
Tanzania, Eritrea and Uganda (especially in the
districts targeted for the project). This project
will use awareness campaigns (see above) and
promotions to help “kick-start” the PV SHS
market in the selected target districts.

Units to raise awareness and promote the
technology will be strategically placed and
designed so that they show how PV can be
cost-effective and attractive for rural customers
(including both households and small
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businesses). Units for raising awareness and
promotion of the technology will be provided
through local PV suppliers at an attractive rate
to encourage “early-adopters” to take them up.
Additional financing could be sought through
Activity D. Minimum standards will be enforced
by the project when selecting installation
companies and maintenance contracts will be
set up with each system installed.

$15,000 in funds will be available in each of the
4 target districts in order to allow the project
implementers to creatively place systems in the
market through the new channels being
developed by the project to raise awareness
and promote the technology. These funds will
partially support purchase of systems from
participating dealers in each district. Such
systems will be used in the awareness raising
and promotional campaigns described above.
The systems will be sold to early adopter end-
users in the districts on condition that the end-
users allow the campaigns to make use of them
during project activities.

System installation for awareness raising and
promotion will be managed in conjunction with
the other promotion activities described above.

The local partner will coordinate this activity with
Government offices, companies and NGOs.

TOTAL COST:             $268,320
GEF Contribution:       $203,520
TREDF Contribution:      $0
Company Contribution: $64,800
Activity I: Policy Workshops                           Policy workshop held
Each East African Government has a different           Report prepared and distributed to relevant
rural electrification strategy, as well as different   stakeholders
approaches to PV duties (or subsidies),
standards, and capacity-building. This project
will bring together players working on PV within
Governments and projects to discuss the
current status of PV technology and their
Government’s policy with regard to the
technology.

Once key people are aware of what is
happening in neighboring countries, they will be
able to discuss regional potential for
harmonization of policies and ways that there
can be a shared benefit from major projects.

The project will hold one policy workshop which
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will enable policy makers to exchange
experience in:
 Duty and tax regimes
 Standards and codes of practice
 Subsidies/Rural Electrification policy
 Capacity building
 Licensing procedures etc
 Project experience and policy

As well, the potential for harmonization of
policies and taxes using regional trading blocks
(e.g. EAC, COMESA) will be discussed.

TOTAL COST:         $9,950
GEF Contribution: $9,950
TREDF Contribution:        0
Company Contribution -0-
Activity J: Finance Workshops                         Finance workshop held
Previous projects have shown that it takes quite      Report prepared and distributed to relevant
a bit of time to build up awareness of potential      stakeholders
PV finance partners, especially at local levels.
Even with dedicated projects (i.e. PVMTI,
UPPPRE), it still takes considerable effort to
convince conservative finance institutions to
take up new products.

This project help to create PV financing
opportunities in two ways:
  Catalyzing links between finance players in
     each country and in the target districts (this
     will be especially important in Tanzania,
     Eritrea and Ethiopia)
  Sharing of country experiences in PV and
     SHS finance. One international workshop
     on regional PV finance will be held
     (institutions like the World Bank, AREED
     and TREDF will use these opportunities to
     explain their programs)

The project will develop linkages between larger
financing players --- including Triodos
Renewable Energy Development Fund/PVMTI
and regional financiers (i.e. country-based
finance organizations) and local players (i.e.
Savings and Credit Associations, consumer
credit groups, dealers, etc).

TOTAL COST:       $9,950
GEF Contribution       0
TREDF Contribution    $9,950
Company Contribution 0
Activity K: Monitoring and Evaluation                 Monthly reports prepared


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The project management team will prepare            Steering committee meetings 5 times over the
monthly progress reports that will be assembled     course of the project
into semi-annual progress reports. The project
steering committee will meet 5 times over the       Semi-annual progress reports prepared and
course of the project (i.e. at project              submitted to UNEP-GEF
commencement again after six months, at the
project mid-term, after 6 months, and again at      Final evaluation exercise completed and report
the end of the project). During steering            prepared
committee meetings, progress reports will be
carefully evaluated. They will then be forwarded
to UNEP. At the end of the project a final report
will be compiled by an independent consultant,
and submitted to the project steering committee
for final review.

TOTAL COST:       $20,350*
GEF Contribution $20,350*
TREDF Contribution       0
Company Contribution 0

*Not included in project budget
12. Estimated budget (in US$ or local
        currency):
        PDF:                                        US$ 24,400
        GEF:                                        US$: 693,600
        Co-financing: TREDF                         US$ 449,450
        Company contributions:                      US$: 90,180

Total:                                              US$: 1,257,630
13.      Information on project proposer:
Energy Alternatives AFRICA, Ltd.
PO Box 76406
Nairobi, Kenya
Tel. 254-2-714623/
Fax/Tel: 254-2-720909
Email: <energyaf@iconnect.co.ke>

Established in 1993.
Became a 50% owned joint venture of Energy for Sustainable Development (UK) Ltd. in 1998.

ESDA is locally registered in Kenya as a limited company active in the area of energy and
development consulting. has a full time staff of 8 consultants and support staff with expertise in
rural energy planning, project design and management, energy management, off-grid system
design and installation and renewable energy training.

Board of Directors:
Mark Hankins (Chair, American)
Daniel Kithokoi (Kenyan)
Bernard Osawa (Kenyan)
Stephen Mutimba (Kenyan)
Mike Bess (ESD UK)
Jeremy Doyle (ESD UK)

ESDA’s mission is to help build local sustainable energy infrastructure by providing technical,
policy, training and management expertise in Eastern, Southern and the Horn of Africa. We work
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in partnership with clients ranging from local communities to industry to international organizations
to help them choose energy options appropriate to their needs.

Energy for Sustainable Development AFRICA, Ltd. is a joint venture of Energy for Sustainable
Development. ESD and ESDA’s combined turnover is over US$2 million per annum from a variety
of clients including :
 World Bank
 European Union
 Dutch government
 Kenyan government
 IGAD
 DFID
 GTZ
 UNDP GEF Small Grants Kenya
 USAID
 IUCN
 ITDG
 Shell Foundation
 Winrock International
 Ashden Charitable Trust
 Commonwealth Science Council (UK)
 Various Kenyan hotels and institutions including Safari Park Hotel, Mater Hospital, Crater Lake
     Hotel and others.
 Booker Tate Ltd.

ESDA/ESD has been involved in planning of GEF activities for the World Bank and UNDP in
Mozambique, Uganda, Ethiopia, Tanzania and elsewhere. ESDA’s managing director serves on
the board of the Kenya UNDP GEF Small Grants Program.

ESDA is currently managing several PV technology commercialization projects in the East Africa
region.
 On behalf of IGAD and the European Union, ESDA is currently working with companies in
    Ethiopia (Addis and Awasso) to increase develop the market for PV in the region. The project
    is scheduled to end in October 2001. The project also includes promotional work in Eritrea.
 ESDA is working for the Dutch Government’s PSOM project in Tanzania. The project is
    helping to establish a Dutch-Tanzanian solar PV company. ESDA is providing expertise on
    market development and technician training.
 ESDA was recently hired on a 2-year USAID-funded project managed by ADRA to assist in
    development of renewable energy infrastructure in Puntland, Somalia.

Other ESDA projects include:
Renewable energy training: ESDA has more than a decade of experience in training technicians,
NGOs companies and projects about all aspects of renewable energy technology. ESDA has
conducted PV training courses in Kenya, Uganda, Malawi, Zimbabwe, Somalia and Tanzania for
UNDP-GEF, IGAD, the European Union, GTZ, DANIDA, the Commonwealth Science Council and
private companies

Renewable energy promotion and company assistance: ESDA has designed , installed and
supported PV systems in Tanzania, Kenya, Uganda, Malawi, and Somalia for a variety of clients.
ESDA designs and installs appropriate sustainable energy systems for applications ranging from
hospitals to ecotourism to remote households. Promoting small- and medium-scale renewable
energy enterprises is a key to developing the overall infrastructure of solar energies. ESDA has
assisted in the incubation of scores of businesses in the region.

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Financing of RET businesses and end-users: ESDA has worked with a number of finance groups
to catalyze finance programs that meet the needs of rural communities and businesses alike.
ESDA designed and ran a project for ESMAP/World Bank to establish a pilot solar home system
loan program in Kenya (1995-98). In 1996, ESDA worked on a pilot solar home system loan
project in Kasase Uganda funded by the US Department of Energy.
Product design and test marketing: ESDA works in partnership with local and international groups
to develop new RET products that meet the specific needs of the region. Through test marketing
initiatives we help companies ensure that products will be successful. Recent projects include test
marketing of lanterns (funded by DFID/ITDG and the World Bank) and development of smaller
batteries and specialized PV products for the Kenya market (ESMAP/World Bank and European
Union).

Market study: ESDA conducts market studies for RET products throughout the East African region.
We have conducted PV market studies in Ethiopia, Eritrea, Kenya, Tanzania, Uganda and Somalia
for ESMAP/World Bank, the Dutch Government, the European Union and others.

Clean Development Mechanism. ESDA/ESD is working with Booker-Tate and the Prototype
Carbon Fund to develop East Africa’s CDM project. The proposed project (which has been issued
a letter of intent by the World Bank) is a grid-connected 15 MW cogeneration plant fueled by
bagasse from sugar outgrowers in Busia, Kenya.

Improving biomass production, conversion and end-use technologies: ESDA uses proven,
commercially-viable project methods to catalyze better management of forest resources in East
Africa and the Horn of Africa. ESDA recently completed a project introducing improved charcoal
stoves in Somaliland and Puntland that was funded by IUCN/EU and the British Lotteries.
14.      Information on proposed executing agency (if different from above):
         (information on the entity that will actually execute the project should be written here)
15. Project concept submission date: December 2001
16.      Project Identification number: to be determined
17. Implementing Agency contact person:
Ahmed Djoghlaf, Director, DGEF; email:gefinfo@unep.org
UNEP, P.O.Box 30552, Nairobi, Kenya
18.      Project linkage to Implementing Agency program(s): The United Nations Environment
Programme has initiated an African Rural Energy Enterprise Development (AREED) initiative.
AREED seeks to develop new sustainable energy enterprises that use clean, efficient, and
renewable energy technologies to meet the energy needs of under-served populations, thereby
reducing the environmental and health consequences of existing energy use patterns. The
AREED approach offers rural energy entrepreneurs a combination of enterprise development
services and start-up financing. This integrated financial and technical support allows
entrepreneurs to plan and structure their companies in a manner that prepares them for growth
and makes eventual investments by mainstream financial partners less risky.
What AREED has to offer includes:
- Training and tools to help entrepreneurs start and develop energy businesses
- Enterprise start-up support in areas such as business planning, structuring and financing
- Seed capital for early stage enterprise development
- Partnerships with banks and NGOs involved in rural energy development
Tanzania is the East African country involved in this project. Other countries involved include
Botswana, Senegal, Mali, Ghana, Zambia.




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Project Description (maximum 5 pages)
9. Project rationale and objectives:

In rural Africa, there is demonstrable, quantifiable demand for the electrical services that solar PV
can provide. Where household energy demand is low and homesteads are not located close
together (i.e. where rural electrification is not practical), PV is often a cost effective way to provide
power for lighting and amenities. The most sustainable and viable method of delivering solar PV
products and services to rural markets is through the private sector. However, in Africa
connecting the market demand (middle and high-income rural people) with product supply
(usually companies in cities) requires a sustained effort that addresses (and sometimes creates)
all links of the commercial supply chain. The private sector will not develop existing demand on
its own, without strategic assistance.

Energy for Sustainable Development, Africa proposes to use proven, commercial practices to
help develop the PV supply sector through a sustained program that combines investment (on the
side of TREDF and other finance groups) and market stimulation in rural areas. The project will
overcome the major incremental barrier faced by companies, which is a lack of finance to invest
in market building.

In all 5 of the countries involved in this project, Government bodies have recognized solar
electricity as a useful technology for rural electrification. In fact, Kenya, Uganda, and Eritrea
already have significant experience with rural PV, while Ethiopia and Tanzania are presently
developing large-scale projects. However, the private sector for PV in the latter 4 countries is still
relatively undeveloped.

This project will show how properly developed linkages between companies and communities can
result in self-perpetuating markets for solar technology. Replacing kerosene and petroleum-
fueled grid expansion with PV can displace significant amounts of CO 2 emissions and provide a
“clean development” future.

The purpose of this project is to improve the commercial delivery of PV systems to rural areas by
facilitating links between international suppliers, regional importers and manufacturers, local
dealers and local equipment markets. The strategy of the project is to create “commercial
delivery corridors” for solar equipment between capital cities and high potential rural markets in
each of the countries. The project will demonstrate how, once various parts of the delivery
infrastructure are in place, PV solar home systems can be traded on a non-subsidized
sustainable basis. The project will exchange experiences between countries in East Africa,
encouraging all stakeholders but particularly companies and policy makers to take up best-
practice positions.

The overall objective of this project is to stimulate increased rural sales of PV by increasing
consumer awareness and by sharing experiences between commercial markets and projects in
region. Specific objectives are to:

1) To create awareness and to put in place the required technical capacity to market, design,
   install, maintain PV systems for small needs in one rural district of each country. To assist to
   develop market linkages between the major commercial center (Addis, Asmara, Dar,
   Kampala) and a selected rural district. The project will create a sustainable “commercial
   corridor” of PV supply between importers, dealers and rural consumers in a high potential
   district. If there is an interested micro-finance group, the project will also attempt to catalyze
   microfinance in each of the countries. This awareness raising and promotion will assist
   stakeholders to further develop the market in other localities.
2) To raise awareness among policymakers and development partners about the role for PV as
   a part of rural electrification in all countries, and to share policy experiences between the
   countries
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3) To build linkages between East African country PV sector stakeholders, including companies,
   dealers, NGOs, rural energy projects and international companies. To assist commercial
   companies to develop viable PV businesses in each of the countries, to share successful
   models, and to enhance trade and information links between neighboring countries
4) To encourage international PV companies to participate in the development of the business
   in East Africa by building awareness of potential markets and by linking them with local
   stakeholders
5) To identify and assist companies that are eligible for TREDF finance. To stimulate interest of
   local finance players in supporting PV projects.

Current Situation
The 5 proposed countries have a combined population of over 150 million people, or 30 million
families. Over three-quarters of the region’s population are rural-based, and, of these 23 million
rural-based families, more than 20 million have no access to electricity at all. For their lighting,
communication and entertainment needs, they rely on kerosene, dry cells and centrally recharged
lead-acid batteries, which provide poor service at high costs. Furthermore, there are high local
and national environmental costs associated with these fuels.

For household needs, solar electricity is a viable and cost effective alternative to kerosene, dry
cells and lead acid batteries. There has been much successful experience with solar electric
systems for lighting, communication, health care and water pumping in the region. Given the
huge un-electrified market in the region, PV should be able to supply a significant portion of the
un-electrified population with entry-level electric power.

The worldwide solar industry has grown from less than 10 MWp production per year in the early
1980’s to close to 400 MWp production per year in 2001. Over the past 5 years, equipment
prices have been steadily dropping and the industry has been growing at a rate that is over 20%
per year. However, more and more of the production is moving to large-scale grid connected
systems in the North (i.e. Germany, Japan). Despite the obvious potential for PV to supply the 2
billion rural people in the world with basic electric services, the industry is increasingly serving
Northern demand because it is easier to sell modules in the north than in the south. While
subsidized programs in the North help build demand there, there is a corresponding need to
assist industry to build demand in the south.

Market surveys verify that there is a viable demand for solar electric products and appliances in
the East African region. Surveys have been conducted by UNDP/ESMAP (Uganda, Kenya),
Shell Foundation (Uganda, Kenya, Ethiopia) and the Inter-Governmental Authority on
Development (Ethiopia, Eritrea). This demand is fueled by a rural middle class which owns (or
aspires to owning) various amenities (radios, lamps, TV’s, stereo systems, etc.). In the proposed
countries, this economically active group makes up between 5 and 25% of the rural population.
In many cases, this group is willing to outright purchase a PV system.

However, significant commercial development of the potential PV market in the region has only
occurred in Kenya, and to a lesser degree Uganda. In the other countries addressed by this
proposal, commercial development of the market has not occurred. This project will address the
primary barrier to development of the PV market, which is a poor awareness among suppliers
and consumers, and poor supply linkages for the technology. Other barriers (see below) will be
systematically addressed in the project activities.

Lack of finance is often cited as the major barrier to development of PV markets --- but this is only
part of the picture. Development of PV markets has as much to do with local private sector
interest in the technology, availability of equipment (such as modules and batteries and DC
appliances) and market awareness as it does with consumer incomes. Without a private sector
infrastructure supplying the pieces, a market will not develop. Equipment needs to be delivered
from cities to remote customers. This requires a whole network of players including importers,
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distributors, assemblers, technicians and marketing agents – none of whom will invest if they
don’t understand the technology and the potential demand. The required pieces are only in place
in a handful of countries. In some countries, awareness among sellers and among rural
consumers is low or non-existent. In other countries, such as Eritrea, there is a great deal of
experience with PV, but it is all in the hands of a Government agency, and it is only used to
deliver PV for applications that donors are willing to pay for.

The view of the proposers is that the chief barrier to the development of the industry is the lack of
commercial infrastructure for sales and delivery of PV equipment. Existing sales of radios,
pressure lamps, cassette players, bicycles, lead-acid batteries and other amenities in the region
indicates clearly that there is ample demand for the power that solar can provide. The key is
mobilizing companies to supply PV equipment in packages that are appropriately sized and
priced for rural customers. There must be clear channels for dissemination of information and
equipment from importer to dealer to consumer.

Without a competitive industry to market, sell, deliver and provide after-service for PV systems,
prices for equipment will remain high, and services provided will be minimal. In Kenya, small
household PV systems and lanterns range in costs from under $100 for a one light and radio
system to $1500 for a large system which can power a video/TV unit and light 6 rooms. In the
other countries covered in the project, low-cost systems are either much more expensive or
simply unavailable. For example, in Uganda and Tanzania, PV module prices are as much as
two times the price of equivalent prices in Kenya where they are available, and there is little
equipment available outside of the large cities. In Ethiopia and Eritrea, PV prices are extremely
high, and there are virtually no distribution networks outside of the capital.

The “high cost barrier” has as much to do with lack of competition and limited selection as it does
with low incomes. For example, for middle class consumers who cannot afford large PV systems,
modules are available throughout Kenya for $50 or less (14 Wp). The same modules are not
available at all in Ethiopia and Eritrea, and they sell for $75 or more in Uganda and Tanzania.
The project has targeted selling PV systems to the top quarter of rural income earners. This
group of people is present in each of the selected target districts (this is why the criteria for
choosing districts included income) and the project has evidence that there are sustainable PV
markets in this group in each of the chosen districts.

Without a sustained effort to support PV companies to build their commercial markets, the PV
sector will remain donor dependant (as it largely is in Tanzania, Ethiopia and Eritrea now), and
focus only on systems that donors can pay for. Further, rural people will not become aware of
PV, and banks and businesses that serve rural areas will not go into the business. Figure 1
shows the supply chain as currently in place, and the actions required at various levels to
stimulate it.

By focusing on the commercial aspects of small PV system supply, this project will build a
competitive approach to the PV market. Once companies recognize that market-building
approaches work, they will apply approaches learned in this project to other regions, and, at the
same time, they will be better equipped to work with the large-scale PV projects being developed
now.

Using the “supply chain” approach, the project will seek to help develop finance mechanisms that
fit the needs of the suppliers and customers in the rural areas. Recognizing that a small project
like this does not have the resources to develop full-scale finance mechanisms directly, it will
address the problem through experience sharing and catalyzing pilot finance efforts where there
is interest from finance stakeholders. The project will work closely with national suppliers,
dealers, local finance organizations and finance partner TREDF to explore various finance
methodologies that could be used to reduce costs to rural consumers.

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   During finance workshops and business development meetings the project will explore methods
   that have been used successfully in the region and elsewhere to lower prices for consumers.
   Practical ideas that the project will explore include:
    Selling systems by component to reduce up-front charges (i.e. working with battery charging
       ESCOs)
    Lay-away plans
    Hire purchase (this is the most common method of PV financing in Kenya)
    Credit through finance institution (i.e. MFIs, SACCOs, rural banks)
    Supplier-agent credit schemes (i.e. methods of helping dealers gain credit)
    Fee-for-service possibilities

   Quality control will be an important aspect of the project. In order to receive support from the
   project, companies will be required to provide a minimum level of after-service and warranties on
   products sold. All of the systems sold as part of the project promotion will be covered by clear
   customer protection agreements. Note that TREDF normally only works with companies that are
   willing to provide customers in suitable warranties and after-service.

   Figure 1: The PV Product Supply Chain


                              Appropriate                           Financing
                               Products


Product
                                                                                          Awareness
Supplier                                                            Sales                 Raising
                        Importers/                                 Training
                        Assemblers

                                           Distributors
Linkage
   s
                                                                   Agents             Customers
                       Policy
                                                Market
                                                Study
                                                                        Installation
                                                                          Training

                                Price Reduction
                                Quality Control




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Expected Project Outcomes
In all of the countries to be involved in the project, there is already an active private sector that
provides household goods, agricultural inputs, hardware items amenities and clothes to the rural
areas. In general, they are effective at doing this, and they consider themselves to be agents of
positive rural change. This project will actively seek to mobilize the rural-targeted private sector
to get involved with PV SHS.

The project will actively address the barriers identified that have been identified as obstacles to
the development of PV industries, namely:

Poor commercial infrastructure
Low awareness among all stakeholders
High prices and lack of financing for systems.
Poor policy environment

At the end of the project, an operational commercial delivery route will be in place between the
capital city and one rural district of each country. This will include:
• several national importers in each country,
• several dealers in the target district,
• at least ten technicians and sales agents in the target district,
• interested community development NGOs
• interested micro-finance groups and
• hundreds of potential PV customers

The primary interest of the project is creating sustainable regionally based business entities that
work with nationally (or capital-city) based companies. It is likely that many of these businesses
will be previously existing businesses that are interested in expanding into PV, such as
electronics shops, hire purchase shops, consumer goods shops, hardware stores, or battery
charging stations. These entities will operate as cash-sales outlets or as “Energy Service
Companies” depending on the prevailing economic climate and their own beliefs in what is
possible. The project will help companies to evaluate potential models that they would like to put
in place.

The project will interact with these groups in a number of ways. First, in the initial field surveys, it
will hold regional meetings to introduce the idea of solar PV to groups that are potentially
interested in selling the product. Secondly, it will introduce them to suppliers from the major
urban centers (or internationally if they are able to import), it will provide them with advice on
products and services that could be offered, and help them to forge links with suppliers. Thirdly, it
will help them critically examine sales opportunities and to devise appropriate business plans to
enter the market. Fourthly, it will provide technical and sales training to companies through the
training activities. Fifth, it will encourage the businesses to participate in the various international
forums and field visits that the project will be sponsoring (though it can not cover the costs for all
businesses to attend all of the meetings). Finally, the project will facilitate links between TREDF
and companies that are eligible for TREDF support.

As well, there will be educated PV businesses in cities of each countries, actively seeking to build
commercial rural markets. There will be a network of influential policy makers --- who are aware
of the necessity of including PV in rural electrification plans and will actively lobby for such plans.
There will be increased participation by international PV companies in the PV markets of Uganda,
Tanzania, Eritrea and Ethiopia.


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As a direct result of project activities, installation of more than 750 PV solar home systems in the
targeted districts, and a measurable growth in the rural PV sales in Uganda, Tanzania, Eritrea
and Ethiopia. Five years after the project, we expect that 3000 systems will have been installed
in the 5 districts.

The exit strategy of the project is to hand over follow-up work to the private sector and the
numerous longer-term PV projects and initiatives in the region. To ensure that these links are
maintained, a Regional PV Development Committee will be set up at the commencement of the
project (its terms of reference to be developed by the project). This committee will include key
representatives from the private sector, UNEP GEF project, the Uganda ERT World Bank GEF
PV project, the Tanzania UNDP GEF project, the Tanzania Sida PV project, IFC, AREED, the
Ethiopia GEF PV project, the Triodos Renewable Energy Development Fund. Meetings will be
held during project activities and self-financed by members. The Solarnet magazine will assist in
the dissemination of information from the above group.

The project will reduce carbon emissions from kerosene lanterns in 5 districts. From systems
installed within the project timeframe, a relatively small amount of reductions would be
experienced (i.e. <300 tonnes/year per district). However, there are two points that need to be
considered: a) if each of the PV sectors continues to grow sustainably, within 5 years the 5
target districts would have a combined cumulative CO2 displacement of almost 3000 tonnes from
3500 installed systems. b) If the companies applied the methods learned to other districts, we
would expect the CO2 displacement to be 5-10 times that experienced in the target districts.
Ethiopia would be likely to surpass Kenya’s present level of 15,000 tonnes/year displaced due to
PV systems

This is an awareness raising, promotional and experience-sharing project. A major assumption of
the project is that the private sector is best equipped to develop rural markets. Furthermore, the
type of assistance required by the private sector to do this job is “eye-opening” assistance,
linkages with companies, financiers and investors, and assistance to develop reach into rural
markets. Businesses will have most respect for --- and be most likely to imitate --- other
successful businesses experiences in the region; hence the focus of this project on business-to-
business sharing.

A second major assumption of this proposal is that there is a viable market for PV SHS in high
potential rural areas, namely in Rakai and Kalangala (Uganda), Iringa (Tanzania), Mendifera
(Eritrea) and Jimma (Ethiopia) (these districts were selected by stakeholders during the PDF A
stakeholders meetings). The project will work with the private sector to develop real markets in
each of these “new” markets. The lessons they learn while addressing these markets can then
be applied elsewhere. An earlier IGAD project he pilot work in Awasso (southern region) has
resulted in the commercial sales of scores of systems, and results indicate that there is
considerable repressed demand for PV among households in the country.

Presently, 150,000 SHS are already in place in Kenya averaging 20 Wp which means that
present GHG substitution is already well above 15000 tonnes/ CO 2 per year. If the 5 other
countries could match Kenya’s PV success, a much more significant CO 2 emissions reduction
target could be achieved. In addition, PV electric lights create a considerably cleaner indoor
atmosphere for study and reading than smoky kerosene lamps. This project targets an emissions
reduction of 3000 tonnes over a 5-year period in the 5 target districts. However, the market-
building aspects of the project, and its partnership with other programs, should result in a net
emissions reduction that is 5-10 times the figure for the target districts.

PV systems for rural electrification have a relatively low CO 2 reduction per system, and would
seem to be a poor candidate for GEF funding. However, CO 2 displacement per kWh rate is much
higher (as much as 10 times) for off grid PV than grid-connected PV because off-grid PV directly
displaces kerosene use. For example, "…a 40 Wp module connected to electric grid in US would
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displace 40 kgs CO2 /year while a 40 Wp module connected to a Kenyan household would
                                           3
displace 350 kgs from inefficient lighting" . This high incremental decrease in CO2 output,
combined with high incremental increase in living standard make solar home system an attractive
technology for GEF funding.

Reduced GHG emissions from PV systems would come from:
1) Substitution of electric lights for kerosene lamps. If average kerosene use in Kenya is 5-
   15 l/mo. per family, emissions reduction per system would be on the order of 130 - 400 kgs
        4
   CO2 . Higher income families tend to burn far more kerosene than low-income families; this
   means that serving higher income groups with solar home systems has a proportionally
   higher GHG use reduction potential.
2) Reduction of GHG emissions from battery charging. This would be on the order of 15-30
                                                                5
   kgs CO2/year for 50-100 Ah battery for grid based recharging

Note that electrification with PV has a high value for avoided emissions compared to grid
extension. Usually, households would prefer grid electricity because of the versatility of high-
voltage grid power. However, because of the high costs associated with extending lines and
distribution networks to rural communities, most rural communities cannot be reached with
subsidized grid-based rural electrification.

Project Implementation Plan and Costs
The project will be executed over 2 years and will involve a series of closely co-ordinated
activities in Uganda, Tanzania, Eritrea, Ethiopia and Kenya. The activities will seek to provide an
“arena” where private companies (local and international), the public sector and major PV
projects can interact and gain from each others experience and linkages. The project will actively
promote positive synergies between all players.



Activity A: Project Management
Project management is described in section 9 above. Its costs are as follows:

TOTAL COST:              $339,740
GEF Contribution:        $334.740
TREDF Contribution:          $0
Company Contribution      $0

Activity B: PV SHS Trade Fair and Project Kick Off Meeting
A meeting will be held in Nairobi at UNEP to examine progress and prospects for PV in rural
electrification in East and Southern Africa, focusing especially on commercial successes.
Approaches used to develop rural PV markets in Africa and elsewhere will be explored. This
“kick-off” meeting will include regional and international stakeholders and will address the state of
art in PV technology, financing programs, promotion methods and policy. Representatives of
major regional PV projects will be encouraged to attend the meeting. The meeting will
incorporate a PV SHS trade fair and a planning meeting for the project.

TOTAL COST:                 $36,800
GEF Contribution:          $11,000
TREDF Contribution:           $17,000
Company Contribution      $8,800


3
  "Rural Electrification with Solar Energy as a Climate Protection Strategy", REPP.
4
  1 liter of kerosene: 2.45 kgs CO2, assume 90% displacement?
5
  REPP
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Activity C: Market Survey in Target Regions of each Country.
The first step in building capacity and awareness in each district level, the project will be to make
a full assessment of consumer markets, dealers, technicians, financiers and other players that
might be interested in participating in the PV market. This survey will consist of a series of
activities in each target district which involve project stakeholders. The information gathered in
this activity will be made available to stakeholders in the project and will form the basis of future
work in each district.

During Activity C, private sector players in target districts will be contacted and involved as
stakeholders in the project. A list of potential companies in the target region will be a clear
outcome of Activity C. Criteria for selection of private sector will be finalized during Activity C.
Criteria will include: a) active in sales of related equipment (i.e. TV’s, electronic appliances,
batteries, consumer goods), b) demonstrated interest in the project and participation in the market
study, c) demonstrated capacity to buy PV equipment and support project, d) wide network of
consumers, respect among community, e) willingness to abide by national or local PV standards,
f) strong links to finance organizations.

TOTAL COST:           $11,880
GEF Contribution       $7,740
TREDF Contribution:           $0
Company Contribution:   $4140

Activity D: Business Opportunity Awareness Raising and Planning Assistance
The over-riding purpose of this portion of the project is to develop the business capacity of
companies to deliver PV systems to the respective markets. Triodos Renewable Energy for
Development Fund (pending board approval) will make investments in selected companies,
provided there is a viable market, and the partner companies have the capacity to grow. This
activity will raise awareness among companies about the potential for PV SHS business,
particularly concentrating on opportunities for development of markets in each of the target
districts. It will work with companies to help them assess how they can enter the PV market (or
diversify existing product lines) using the data from the completed market survey. It will seek to
build linkages and provide sets of resources that companies can use independently.

TOTAL COST:       $462,640
GEF Contribution: $0
TREDF Contribution: $462640
Company Contribution: $0

Activity E: Technician and Sales Training
In order for PV to be taken up by companies in the target district, a minimum level of technical
and sales capacity must be developed. Central “training of trainers” for solar home system
installation and PV sales, attended by representatives from interested companies, will take place
in one country. Following this, each country will organize and hold their own training courses with
support from the project.

TOTAL COST:          $81,440
GEF Contribution:    $75,000
TREDF Contribution:         $0
Company Contribution: $6440

Activity F: Country PV Trade Fair & Awareness Seminars
Over the course of the project, two international “events” will be held (in addition to the first
meeting) to help regional companies refine their product offerings. These will be staged in the
middle (in Uganda) and last trimester of the project (Tanzania). They will focus on specific
aspects of PV technology applicable to this region. They will continue the project’s objective of
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                             Commercial Dissemination Networks for Household PV Systems
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bringing together international companies and local companies, fostering better understanding of
local markets (and projects), linkages and investment opportunities.

TOTAL COST:          $46,300
GEF Contribution:    $22,800
TREDF Contribution:    $22,500
Company Contribution: $1,000

Activity G: Inter-Country Exchange Visits, Information Exchange & International Visits
PV entrepreneurs and key stakeholders from Uganda, Tanzania, Eritrea, Kenya and Ethiopia will
be invited on several day study visits to learn how successful solar home system markets
developed and how they presently operate. During these visits they will be encouraged to
develop trade linkages. Visits will be within the region and also to countries with successful PV
development (Sri Lanka, Indonesia). These visits will also focus on successful finance
experiences in the various countries visited.

TOTAL COST:                $58850
GEF Contribution           $53,850
TREDF Contribution           $0
Company Contribution        $5,000

Activity H: Region-Based Awareness Raising and Promotional Campaigns
Through the duration of the project, a series of promotional activities will be held in each country
target district to introduce and demonstrate PV SHS technology, and provide an opportunity for
villagers to see, understand and purchase solar home systems. At the same time “larger”
community or income generating systems will be installed to raise awareness. Companies and
technicians (identified and trained through the project) will be fully involved in this campaign.

During the market survey activities in each target region, the project team will contact and
appraise finance organizations (including hire purchase agents, micro-finance organizations,
commercial banks and NGOs focusing on finance) .about the project. Throughout the project,
these groups will be actively encouraged to become involved in the financing of PV solar home
systems or PV company support. Further, the project will help develop linkages between local
finance organizations and national organizations that are interested in providing and developing
PV finance.

The project will encourage co-operating companies and beneficiary companies to adhere to a
policy of “Truth in Advertising”. Recognizing that the GEF has experienced problems when
consumers were poorly informed about the actual possibilities of PV, the project field workers will
spell out clearly what the limitations of PV are in its education activities, and will encourage
companies to do the same.


TOTAL COST:           $268320
GEF Contribution:     $203,520
TREDF Contribution:    $0
Company Contribution: $64,800

Activity I: Policy Workshops
Each East African Government has a different rural electrification strategy, as well as different
approaches to PV duties (or subsidies), standards, and capacity-building. This project will bring
together players working on PV within Governments and projects to discuss the current status of
PV technology and their Government’s policy with regard to the technology. The long-term
outcome of this activity will be harmonized policy in the region, and better intra-country
understanding of how rural electrification strategies.
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                             Commercial Dissemination Networks for Household PV Systems
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                                                   Energy for Sustainable Development, Africa



TOTAL COST:         $9950
GEF Contribution: $9950
TREDF Contribution:       0
Company Contribution -0-


Activity J: Finance Workshops
The purpose of these workshops will be sharing of country experiences in PV and SHS finance.
These workshop will attempt to catalyze links between finance players in each country and in the
target districts. Through information sharing and this type of networking, the project will develop
linkages between larger financing players --- including Triodos Renewable Energy Development
Fund/PVMTI and regional financiers (i.e. country-based finance organizations) and local players
(i.e. Savings and Credit Associations, consumer credit groups, dealers, etc).

TOTAL COST:       $9950
GEF Contribution      0
TREDF Contribution    $9950
Company Contribution 0

Activity K: Monitoring and Evaluation (Not included in master budget)
See below for an explanation of the monitoring program.


TOTAL COST:       $20,350
GEF Contribution $20,350
TREDF Contribution       0
Company Contribution 0




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                            Commercial Dissemination Networks for Household PV Systems
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Post-Project PV Business Sustainability and Risk Assessment
This project aims to create and expand viable PV businesses and regional agencies in 5
countries. The premise of the project is that there is an existing un-exploited market in many rural
areas; the activities that the project undertakes will enable the viable markets to be developed.

The project is concentrating on private sector companies to be the primary vehicles of the work
carried out. After the 2-year project period is over, it is expected that, having accomplished key
objectives, the work of disseminating PV will have been handed over to the private sector. The
private sector will take over marketing of equipment on a long-term basis. There are several
levels at which this is expected to occur.

       National level: Companies will have a better idea of how to assess and develop rural
        markets --- in short, how to plan and carry out a business plan for PV SHS sales in rural
        areas. They will have a core of trained sales and installation crews that can operate in
        rural district. Based on their experiences in this project, they will be able to manage
        promotion and sales programs in new regions.

       Target district level: At the target district level, consumers, traders, sales agents and
        technicians will have been alerted about the potential for using and selling PV SHS.
        Consumer demand will have been initiated through active promotion. Trading will have
        been initiated through the supply chain driving efforts of the project.

   International level. International PV and balance of systems suppliers will see East Africa as
    a key SHS market. Rather than looking at the region as individual countries (or projects)
    marketing agents will have plans to develop the entire region.

There are a number of issues and risks that need to considered. First, of all, there are a variety
of risks that affect trade in the region --- such as armed conflict, drought, political instability, etc.
There is little this project can do to avoid these when they come up.

Future management costs of the PV sector will be entirely taken over by the private sector.
However, by the time this project is over, it is likely that a number of initiatives will be underway in
the region (ERT WB GEF – Uganda and Tanzania, Energy Access Project WB GEF Ethiopia, etc)
and these projects are likely to continue providing stimulation to the SHS sector through smart
subsidies that will be phased out.

Another issue is capacity building. Consumers and installers of solar PV systems need minimum
levels of knowledge and technical expertise to maintain and install systems. The capacity-
building work to be executed under this project will be limited, and cannot meet all of the
demands. However, by transferring training capacity (through ToT activities) to companies and
stakeholder bodies, a start will be made, on which further growth can be built.

An additional risk is that companies may not be able to grow to the point that they become
“sustainable” by the end of the project period. There are two ways the project seeks to get
around this. First, the project will actively shortlist and work with companies which are most likely
to succeed (such as retail outlets that are already involved in other related products and
services). Secondly, TREDF will carefully pre-select companies that have the necessary pre-
conditions for being successful businesses, and sustain them by engaging them over a long
period.

A final concern is that quality of PV systems may degrade after the project is over due to
company desire to make sales and beat the competition. This is a legitimate concern. In Kenya,
PV system quality is a serious issue and in the market there are both “cowboys” who sell sub-
standard equipment without regard for how consumers, as well as companies committed to
quality. In the end, customers make the choice between quality and price; the more consumers
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                              Commercial Dissemination Networks for Household PV Systems
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are informed, the more likely they are to make an informed choice. The objective of this project is
to (1) educate consumers in the target districts about PV system quality and (2) to work with the
suppliers that are committed to supplying quality systems. The project will encourage companies
to follow PV codes of practice where they have been established.

Stakeholder Involvement
During the PDF A formulation of the project stakeholder workshops were held in Kenya,
Tanzania, Uganda, Ethiopia and Eritrea to discuss the project and how different stakeholders
would be involved. Workshops included participants from the private sector (city PV companies,
BOS suppliers, agents), Government, non-government organizations involved with energy (these
would include consumer interest groups), GEF focal points (or their representative) interested
consultants, finance organizations and community organizations.

In each meeting the following activities took place (see summary notes in Annex 5,6 and 7):
 Consensus was reached upon the major barriers to PV in the country and suggest
    methodologies for overcoming them
 How the project would be designed, its expected outcomes, objectives and activities,
 Agreement was reached on priority concerns and expectations and the stakeholder
    participation plan.
 Target rural regions in which the project would be active were selected.

The stakeholders meetings identified similar barriers to PV industry growth. In Uganda and
Eritrea high prices and lack of financing facilities were seen to be the highest barrier, while in
Ethiopia and Tanzania other barriers ranked more highly (awareness, policy, commercial
infrastructure). Virtually all involved in the meetings agreed with the proposed approach of the
project.

Target regions were selected during the meetings based on regular incomes, high population
density, accessibility of district for businesses, low grid expansion rate, and demand for radio, TV
and light. In Uganda and Tanzania, stakeholders decided to choose districts that did not always
have receive projects (i.e. Arusha was seen as a choice with good potential, but too many
projects were done there so the project chose Iringa).

During the meetings and subsequent consultations, inputs were sought in the design of the
project in overcoming demand barriers, infrastructure barriers, product and service barriers.
During breakout sessions in these meetings (and later one-on-one meetings with companies),
practical ideas were solicited on how to best develop rural markets (see notes). These ideas
were used to develop the range of activities proposed, and, for each country, specific ideas will
be taken up when the project is executed.

The project will be managed by Energy for Sustainable Development, Africa, Ltd. from Nairobi
Kenya. Local consultants will manage activities in each of the participating countries. The central
secretariat of the project will be with Energy for Sustainable Development, Africa while each
country will have a secretariat (under the local consultant). These two offices will keep all project
stakeholders updated and involved with the project. For example, results of the market studies
will be provided to all interested stakeholders.


INCREMENTAL COST ASSESSMENT

To varying degrees, the Governments of Kenya, Uganda, Tanzania, Ethiopia and Eritrea have all
drafted rural electrification plans and are in the process of implementing them. All of the countries
are moving towards private-sector led rural electrification strategies that include use of
renewables and specifically PV technology where grid is not practical. Uganda, in particular, has

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re-oriented its plan to include renewable energy and PV in its strategy under the World Bank-
funded Energy for Rural Transformation program. Tanzania (with WB ERT) and Ethiopia (with
the WB-assisted Energy Access Program) are also reviewing their rural electrification initiatives to
include PV, micro-hydro and other renewable energy sources. Kenya, which has not had World
Bank investment in its Rural Electrification sector for over a decade, has one of the most active
commercial PV SHS markets in the world.

However, PV sector activities in the above countries are occurring in relative isolation and
markets function independently of each other. Although Kenya does participate in the Uganda
and Tanzania markets, little information is exchanged across the borders. Neither projects nor
private sector companies are sharing information across borders.

Baseline Scenario
If things continue according to the existing situation, the PV and SHS markets in each of the
target countries will continue to grow slowly. Expansion of sales to rural areas will not take place
very quickly, as there is little connection between urban and isolated rural markets, and little
incentive to develop them.

Given the present small size of the markets (40-70 kWp/year) the business as usual baseline
would expect modest growth in the markets, though much of this growth would be in the
“traditional” donor-oriented market. As shown in the table below, growth in markets is likely to
continue to be little more than 5% per year.

Further, even the growth benefits that might be expected from major World Bank initiatives (such
as Energy for Rural Transformation) would be slower to accumulate because of the delays in
getting companies “up to speed”.

Table 1: Baseline Development of Market: Estimated Sales (kWp/year)
Country     Present         2003   2004   2005   2006    2007   2008   2009   2010   2011 Total Value of
                                                                                          PV Systems @
                                                                                          $10/Wp
                                                                                          (000's/$)


Kenya                 500
Uganda                 70    74     77     81     85       89    94     98    103    109           8105
Tanzania               40    42     44     46     49       51    54     56     59     62           4631
Ethiopia               50    53     55     58     61       64    67     70     74     78           5789
Eritrea                40    42     44     46     49       51    54     56     59     62           4631


In the baseline case, it is estimated that the PV markets in the 4 target countries would be worth
approximately $23 million over the next ten years.

The GEF Alternative
With the GEF project, the private sectors in the countries would see the commercial potential of
the rural PV market and would quickly develop capacity to exploit that market. Given their
experience in the initial target regions, they would apply these lessons to other regions and build
their sales networks. Further, international companies would be more engaged with the region
because of linkages created by the project.

The cross-fertilization benefits of free and faster flow of information within the region would result
in more competition and lowered prices. Markets would grow faster because businesses will be
in a better position to deliver products. Consumers and dealers at the regional and district levels
will be better educated and have more capacity to choose and deliver products.


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                               Commercial Dissemination Networks for Household PV Systems
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As shown in the tables below, a doubling and tripling of the PV sales growth rate catalyzed by this
project would result in significantly larger market sizes over the next 10 years. An aggressive
program to work with the private sector could result in the total accumulated PV sales being
between $30 to $39 million. This is $7 to $16 million dollars more than the baseline case, a
number of times the GEF investment in this project.

Table 2: Accelerated Case 1
ACCELERATED CASE I (10% growth/year)
Country    Estimated       2003   2004   2005   2006   2007   2008   2009   2010   2011 Total Value of
           Present Sales                                                                PV Systems
           (kWp/year)                                                                   @ $10/Wp
                                                                                        (000's/$)


Kenya               500
Uganda               70      77     85     93    102    113    124    136    150    165         10456
Tanzania             40      44     48     53     59     64     71     78     86     94          5975
Ethiopia             50      55     61     67     73     81     89     97    107    118          7469
Eritrea              40      44     48     53     59     64     71     78     86     94          5975

Table 3: Accelerated Case 2
ACCELERATED CASE II (15% growth/year)
Country    Estimated       2003   2004   2005   2006   2007   2008   2009   2010   2011 Total Value of
           Present Sales                                                                PV Systems
           (kWp/year)                                                                   @ $10/Wp
                                                                                        (000's/$)


Kenya               500
Uganda               70      81     93    106    122    141    162    186    214    246         13513
Tanzania             40      46     53     61     70     80     93    106    122    141          7721
Ethiopia             50      58     66     76     87    101    116    133    153    176          9652
Eritrea              40      46     53     61     70     80     93    106    122    141          7721


Although predicting exact numbers is a “fuzzy” process, it can be shown that similar catalyzing
activities in Kenya during the late 1980’s and early 90’s did cause Kenya’s PV market to grow
rapidly. Between 1994 and 1999, commercial PV sales in Kenya increased by an average of
25% per year, and even in 2001 they are likely to have increased by 15% over the previous year.

Further, the project will leave companies in each country in a better position to work with
proposed World Bank or other GEF initiatives. Groundwork completed under this project will help
organize the industries in each country, mobilizing the interest of BOS, appliance companies,
local battery manufacturers and consumers. It will also prepare a group of companies to be
capitalized (possibly by SDC), enabling them to make faster returns on a large project.

Table 4 calculates the incremental costs of the project.




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                             Commercial Dissemination Networks for Household PV Systems
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Table 4: Incremental Cost Matrix
        Project Activity                    Baseline                                          Alternative                                Increment
Regional            Promotion Nationally based companies unaware                Organize trade fairs that are attended        Better awareness of products
Activities and Information of wide selection of PV technologies                 by international PV companies, local          among local companies.
Exchange                       available.  Companies unaware of                 PV companies and major projects in
Project KO Meeting (Act B)           successful experiences with PV in          the region.         During meeting,           Improved      linkages     between
Country PV Trade Fair           &    neighboring countries and worldwide.       encourage companies to exchange               international     suppliers    and
Awareness Seminars (Act F)                                                      experiences with companies from the           regional dealers.
Inter-Country Visits & Information   International PV companies unaware of      region. Companies assist to link with
Exchange (Act G)                     local companies in Eritrea, Uganda,        suppliers and sources of service and          Better       knowledge      among
Finance Workshops (Act J)            Tanzania, Ethiopia.                        equipment.                                    companies about the role of PV in
Policy Workshops (Act I)                                                                                                      rural electrification and about the
                                     International and local PV companies       Organize study tours for companies,           possibilities of PV and BOS as
                                     do not understand PV markets or the        decision-makers and finance groups to         profitable products.
                                     various GEF and bilateral PV programs      countries that have successfully
                                     underway in the region                     implemented PV-based off-grid rural           Increased    knowledge     among
                                                                                electrification programs.                     finance agencies and companies
                                     Local    companies     and     finance                                                   of finance methodologies for PV in
                                     organizations unaware of successful        Organize finance workshops to                 rural areas
                                     finance experiences in the region and      discuss finance experiences and
                                     worldwide.                                 opportunities among companies and             Better awareness among policy
                                                                                finance agencies that are interested in       makers of what is happening with
                                     Decision-makers from key Ministries        rural energy.                                 PV-based rural electrification in
                                     not fully sensitized to the role that PV                                                 the region.     A shift toward
                                     can play in rural electrification          Organize policy workshops for key             harmonization in PV standards
                                     programs.                                  Ministries to discuss the role of PV in       and policy among East African
                                                                                regional rural electrification projects, to   countries.
                                                                                discuss regional project activities, and
                                                                                methods to harmonize policy and
                                                                                standards.

                                     Cost: US$ 0                                TOTAL COST:                    $161850        Incremental cost: US$ 161,850
                                                                                GEF Contribution:              $97600
                                                                                TREDF Contribution:
                                                                                $49450
                                                                                Company Contribution           $14800
                                                                                                          Energy for Sustainable Development, Africa




Target District-Based Market Consumers in target districts (Iringa, Conduct market assessments with the                          Increased awareness of the public
Activities                   Kalangala, Rakai, Mendifera & Jimma) private sector in the target districts to                      at large in the potential of PV to
Market Assessment in Target District   are not fully aware of the potential of      identify the real cash and finance           meet their basic electricity needs.
(Act C)                                utilizing PV, as an alternative to           market. Disseminate the results of
                                       kerosene, to obtain safe and efficient       these market surveys with urban and          Development of local private
Awareness Raising Campaigns (H)        lighting/electricity services in off-grid    target-district based companies.             sector interest in sales of PV and
                                       situations. Demand for PV develops                                                        PV appliances.
                                       slowly.                                      Raise awareness of vendors and sales
                                                                                    agents of the potential and actual           Links developed between national
                                       The private sector will not seek to          demand for PV systems and                    and target district vendors.
                                       develop    regional    agents,    sales      appliances.                                  Increased availability of PV in
                                       networks or technician support staff.                                                     regional outlets. Lowered prices
                                                                                    Formulate outreach programme in              to consumers.
                                       Kerosene and dry cells will continue to      each target district utilising multi-media
                                       be viewed as the only potential source       (radio, plays, print, video); organise       Confidence among consumers
                                       of lighting and power of off-grid            general awareness campaigns in               and PV sellers in the ability of PV
                                       consumers in rural areas.                    conjunction with the private sector.         to meet basic lighting and power
                                                                                                                                 requirements.
                                                                                    Install PV systems in key sites where
                                                                                    market is likely to build.


                                       Cost: US$ 0                                  TOTAL COST:           $280,200
                                                                                    GEF Contribution       $211260               Incremental cost: US$ 280,200
                                                                                    TREDF Contribution:          $0
                                                                                    Company Contribution:   $68940

Technical                Training Agents involved in supply of PV and               Training of trainers held developed for      Local vendors and technicians
Assistance (Act E)                     battery systems in target areas will         basic technicians and sales people.          are able to assist consumers in
Training of Trainers, Technician and   continue to be unable to properly size,      Technical       curriculum     teaches       properly sizing, installing,
Sales Training                         install or maintain systems.                 vendors/technicians to properly size,        maintaining and repairing PV
                                                                                    install, maintain and repair PV              systems.
                                       Marketing and sales capacity for PV          systems. ToT held with attendees
                                       systems will remain at rudimentary           from key private sector organizations        Sales people are able to more
                                       levels in target areas.                      from each country.                           effectively market systems
                                                                                                                                 through coordinated campaigns
                                       Technical training does not take place       Technical training courses held for          with national and international

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                                                                                   Commercial Dissemination Networks for Household PV Systems
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                                in the target areas.                        participating sales people, vendors in      brands.
                                                                            the target areas.

                                Cost: US$ 0                                 TOTAL COST:          $81,440                Incremental cost: US$ 81,440
                                                                            GEF Contribution:    $75,000
                                                                            TREDF Contribution:         $0
                                                                            Company Contribution: $6440

Business         Planning TREDF invests as in its existing plan             TREDF invests an additional $400000         Companies have greater
Assistance and Loans (Act and covers the cost of its staff time.            in client companies. They are               confidence in PV as a product.
D)                                                                          provided with opportunities to build
Business Planning Assistance    Urban companies do not interact with        linkages upward (i.e. with                  Companies gain experience
                                others in the region or get an              international companies), laterally (i.e.   developing market chains into
                                international view of market                with regional companies) and                high potential target areas
                                opportunities.                              downward (i.e. into rural market
                                                                            areas) in ways that are presently not       Companies have much greater
                                Urban companies do not have support         being done.                                 knowledge of products and
                                to develop linkages to rural markets.                                                   marketing techniques.
                                Growth of sales does not penetrate          Client companies are introduced to
                                rural areas as fast.                        successful financing methods, and           Companies develop their own
                                                                            attempts are made to pilot viable           finance strategies based on
                                                                            finance strategies with willing PV          experiences outside their country.
                                                                            companies, finance groups and
                                Cost: US$ 62640 (existing costs)            NGOs.
                                                                                                                        Incremental cost: US$337360
                                                                            TOTAL COST:       $400000
                                                                            GEF Contribution: $0
                                                                            TREDF Contribution: $400000
                                                                            Company Contribution: $0

Local & Benefits                750 rural households will continue          Consumers have opportunity to               There will be decreases in the
                                using kerosene and open fires for their     purchase PV systems and                     number of people suffering from
                                lighting needs. Each household will         components due to project activities        respiratory and eye problems
                                spend an average of US$ 120/year on         in region (as described)                    related to poor indoor air quality.
                                kerosene and dry cells. This will result
                                in emissions of green house gases into
                                the atmosphere as well as pollution

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                                                                                       Energy for Sustainable Development, Africa




                              from particulate and discarded
                              batteries as mentioned in the text,

                              There will be slow and very limited
                              development and utilisation of PV
                              energy in the target regions.

Global       Environmental Emissions of green house gases into       Low GHG emitting technology market    Over 260 tonnes of CO2 will be
Benefits                      the atmosphere                         is accelerated                        avoided annually in the target
                                                                                                           regions after 2 years. This is
                                                                                                           likely to increase to 3000 tonnes
                                                                                                           per year in the target regions if
                                                                                                           the market grows as it has
                                                                                                           elsewhere. There is likely to be
                                                                                                           spill over effect in other regions of
                                                                                                           the involved countries, resulting in
                                                                                                           a much higher amount of CO2
                                                                                                           being avoided.
Project Management Costs      No project.                            Project is managed and implemented.   Project successfully meets
                                                                                                           objectives

                              Cost $0                                TOTAL COST:            $334,740       Incremental costs $334,740
                                                                     GEF Contribution:      $334,740
                                                                     TREDF Contribution:         $0
                                                                     Company Contribution    $0

Costs                                                                Total:    US$ 718,600 (GEF)
                                                                               US$ 449,450 (TREDF)
                                                                               US$ 90,180 (Companies)
                              Total: US$ 62,640                                _____________               Total: US$ 1,195,590
                                                                     Total:     US$ 1,258,230




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        IMPLEMENTATION PLAN
        Energy for Sustainable Development, Africa will carry out the project in conjunction with selected
        local consultants in each country. A project steering committee will be formed to guide the
        project. It will include representatives of Triodos Renewable Energy Development Fund, country
        representatives from the PV private sector, project management and Government officials.

        Specifically, the committee will include:
            ESDA/ESD project management (2 members)
            Triodos Renewable Energy Development Fund appointed member (1 member)
            GEF UNEP (if viable and useful)
            3 representatives selected from the target country private sector (to be chosen at
                commencement of project)
            3 representatives from Government in the target countries and Kenya (to be chosen upon
                commencement of project)

        NB All countries will be represented in the combined membership.

        The steering committee will receive quarterly reports of project progress and will be copied all
        monitoring and evaluation outputs. A full-time manager based at ESDA in Nairobi will carry out
        day-to-day project management. This manager will delegate work to consultants in each country.
        Consultants in each country will be chosen based on competitive tender. The project will be
        carried out over a 24-month period (see Implementation Schedule below).

        Project activities will follow a logical sequence (see project descriptions).

           The first activity will be an East African meeting on PV for rural electrification that will involve
            the project team as well as companies, project, international suppliers and promotion agents.
           This will be followed by market assessment and survey activities in the target districts of each
            country. Essentially, the project will attempt to focus the private sector on developing
            linkages to than market.
           Simultaneously, the project will work with interested businesses to help them develop
            business plans for the target region and the country as a whole. Triodos Renewable Energy
            Development Fund will work closely with their pre-selected group of partner companies.
           Subsequent activities, including technical training, international PV company visits, policy and
            finance workshops will be held as shown below.
           Inter-country visits and information exchange will be an ongoing-activity. Over the course of
            the project, Solarnet Kenya will produce 8 issues “Solarnet” magazine which will focus on
            each country, and on particular issues such as finance, policy, technology and local
            manufacture.
           Awareness-raising campaigns and promotion will be carried out in the target districts as an
            ongoing activity.

Table 4: Project Implementation
 Activity                 Country                       Year 1                                    Year 2
                                        J/F    M/A    M/J   J/A     S/O    N/D    J/F    M/A    M/J   J/A     S/O   N/D
 Project KO Meeting       Kenya
 Market Assessment in     ALL
 Target District
 Business Planning        ALL
 Assistance
 Technician and Sales     ALL
 Training
 International PV         Uganda,
 Company Visits           Tanzania
                                                                 Energy for Sustainable Development, Africa


   Inter-Country Visits &     Kenya, Sri
   Information Exchange       Lanka, …
   Awareness Raising          ALL
   Campaigns
   Policy Workshops           Uganda
   Finance Workshops          Tanzania
   Demos                      ALL
   Monitoring and
   Evaluation

           Project Institutional Framework



                                           Project Institutional Framework

                               TREDF                          ESDA Project                  Steering
                               Business                       Director                      Committee
                               Support Team


                                                                ESDA Field
                                                                Manager
                                    Solarnet
                                    Information                                              Technical
Loans &                             Exchange                                                 Team
Business
Support


                             Uganda               Ethiopia                 Eritrea                Tanzania
                             Agent                Agent                    Agent                  Agent



                 Uganda PV                   Ethiopia PV              Eritrea PV               Tanzania PV
                 Companies                   Companies                Companies                 Companies




                                                  Ethiopia                    Eritrea                    Tanzania
                    Uganda                        Stakeholders                Stakeholders               Stakeholders
                    Stakeholders                      Energy                     Projects                  UNDP GEF
Business                ERT &                         Access Prog                NGOs                      SIDA
 Rural                   UPPPRE                   
                        NGOs
                                                       NGOs                    Government                   NGOs
Outreach                                           Government                 Promotion                 Government
                     Government
                                                   Promotion                      Agents                 Promotion
                     Promotion
                         agents
                                                       Agents                  Finance                       Agents
                                                   Finance                        groups                 Finance
                     Finance                          groups                                                 groups
                         groups
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                      Rakai/                      Jimma                     Mendifera         Page 47
                                                                                               Iringa
                      Kalangala                     Target                         Target                 Target
                      Target                        Region                         Region                 Region
                      Region
                                                   Energy for Sustainable Development, Africa


As shown below, the project will be managed by ESDA. The project actors are as follows:
The ESDA project team will manage the project. The project director will ensure that activities
occur on time; the position will also link with TREDF and the project steering committee. The
field manager will manage the day-to-day tasking of the local country agents, the technical team
and the Solarnet promotional team.

Triodos Renewable Energy for Development Fund will be involved in its core business support
and loan activities. It will provide business assistance as requested and work with companies as
described in its corporate mission. As can be seen in the diagram, the TREDF support will be
staged so that companies can use the project to gain access to the markets that are being
identified in the target regions. Companies will be able to select which project resource they
prefer to take advantage of.

The local agents will have three primary roles in the project: First to meet with companies and
help them develop relationships with TREDF and the project. Secondly, they will develop
linkages with the “downstream” target district companies and consumers and manage the
promotional events that build demand for solar products. Thirdly, they will coordinate with the
local stakeholders and involve them in them in the activities such as training, promotion etc.
Local agents in each country will be selected on the basis of suitability, and are likely to be
independent consultants.




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Public Involvement Plan

For this project to succeed, there must be active involvement from a number of key stakeholders.
During the PDF A activities, stakeholders were consulted in each of the participating countries to
seek their input to the project, during full-day stakeholders meetings and during one-to-one
discussions with players. Representatives from industry, government, civil society and NGOs
attended the meetings.

During stakeholder meetings, attendees agreed on the major barriers to growth of the market
(some had been decided previously) and chose focus regions for the project to concentrate on.
Participants addressed demand barriers, infrastructure barriers and technology barriers in focus
group sessions. A variety of points were raised in meetings (see Annex 2 for stakeholder
reports), and different countries had different issues.

Examples of key issues included:
 Uganda: How would the project avoid duplication of the UPPPRE project?
 Tanzania: Selection of an area that is not “oversubscribed” with development assistance was
   an issue.
 Kenya: How could the Kenya private sector assist the development of other markets?
 Ethiopia: How can the project build awareness and lower prices for the rural market?
 Eritrea: How could the project help companies in awareness raising, promotion and
   coordination of sales?

Issues raised by participants were recorded and assimilated into the project plan. They will also
be re-visited during project initiation planning. Roles of the various stakeholders were discussed
in the meetings. It was agreed that the primary focus of the project would be on the private sector
and on raising awareness among consumers.

A mature industry involves a number of players, ranging from commercial importers to secondary
town-based sellers to NGO promoters to Government regulators to technology consumers. In the
process of building a PV supply chain, these players all have a role to play. Table 5 lays out how
the various players will be involved in the project.

A key function of this project is to share information about PV and rural electrification with all of
the players in the region. Intra-country visits, policy meetings and finance meetings will all play
some role in this. As well, the Solarnet magazine will be used to disseminate information about
the project, and about solar PV in general to stakeholders in the project. All stakeholders will be
sent quarterly copies of the Solarnet magazine. Over the course of the project, the magazine will
feature articles about each country, and about relevant topics. All stakeholders in the project will
be provided with a 2-year subscription to the magazine.

NB. A full list of stakeholders appears below.




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Table 5 Project Actors
Stakeholder                 Relevance to Project                     How they will be involved
PV importing companies      This is the key group of players, as     Primary project beneficiaries.
                            the sustainability of the project will   Will be involved in most
                            depend on their continued                activities.
                            involvement in the business after
                            the project close. These companies
                            already exist and have been
                            identified and short-listed.
Smaller solar companies     Such companies will not necessarily      The success of the project will
and independent             be involved exclusively in solar         be largely dependent on its
technicians, especially     energy --- they may be consumer          ability to entice such
those based in the target   electronic shops, electrical spares      businesses to incorporate
districts.                  shops, free lance electricians, etc.     solar electricity into their
                            But they reach the rural markets.        existing portfolio of products
                                                                     and services. Many of these
                                                                     stakeholders will be identified
                                                                     during the course of the
                                                                     project.
Balance of systems and      Groups such as battery companies,        The project will show them
appliance suppliers.        television/consumer electronics          how PV can help them
                            distributors and local electronic part   develop sales of their products
                            manufacturers have a role to play in     to the rural market.
                            the PV SHS market.
Government energy           Energy officials have, in the past,      This project will select key
departments.                tended to focus on “grid-based”          government policy makers and
                            approaches when considering rural        planners, involve them in
                            energy. In many East African and         activities, and keep them up to
                            Horn countries, Government               date about regional PV
                            departments have had little access       developments. They will be
                            to information about PV in rural         involved in the policy
                            electrification, and, hence have not     workshops.
                            incorporated PV into planning.
Consumers                   The ultimate beneficiaries of PV         This project, through
                            systems are consumers that use           promotion and awareness
                            them.                                    raising campaigns in rural
                                                                     areas, will seek to raise
                                                                     awareness among consumers
                                                                     of PV technologies at district
                                                                     levels and seek to help them
                                                                     better understand the
                                                                     technology.
Finance agencies            Financiers can help consumers            The project will seek to
                            overcome high initial cost of PV         interest finance groups (at the
                            systems                                  national and district level) in
                                                                     supporting PV for rural
                                                                     development. Attempts will
                                                                     be made to link finance
                                                                     agencies with international
                                                                     financiers (i.e. TREDF).
Promotion agents,           These groups can help reach rural        NGO and community-based
community development       target groups by enabling the            development agencies will be
and energy NGOs.            project to use their existing networks   engaged during promotional

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                            and methods of outreach.                 and awareness-raising
                                                                     activities.
International PV            PV products come from international      The project will help them gain
companies                   companies                                a better understanding of
                                                                     regional markets and enable
                                                                     them to plan better regional
                                                                     sales campaigns
PV and Rural Energy         Major Projects involved in PV            The project will build on the
Projects.                   extension work. I.e. Uganda              activities of these projects by
                            UPPPRE, Uganda ERT, PSOM                 helping them reach into target
                            Tanzania, UNDP Tanzania, Energy          districts and by helping them
                            Access Program Ethiopia                  learn from experiences of
                                                                     neighboring countries.



MONITORING AND EVALUATION PLAN

Monitoring and evaluation of the project will be carried out as an integral part of the project. The
project management team at ESDA will prepare monthly progress reports that will be assembled
into semi-annual progress reports. The project steering committee will meet 5 times over the
course of the project (i.e. at project commencement again after six months, at the project mid-
term, after 6 months, and again at the end of the project). During steering committee meetings,
progress reports will be carefully evaluated. They will then be forwarded to UNEP. At the end of
the project a final report will be compiled, and submitted to the project steering committee for final
review. All GEF and co-financing disbursements will be contingent on the project team meeting
minimum outputs and documenting these outputs in progress reports.

It is expected that UNEP would conduct their own review of the project some time after the
interim report is prepared. The project management will unit will follow the established
GEF/UNEP reporting and monitoring procedure (see M&E Annex).

Project success will gauged against the targeted output indicators already described (see Project
Outcomes and M&E Annex). Indicators can be categorized into three general types. The first
includes reports of activities carried out including workshop reports, market assessments, training
activity reports, documentation of exchange visits, etc. These reports will be compiled as
annexes into interim reports. The second type of indicator includes variables such as numbers of
actors (i.e. importers, dealers, etc.) and volumes or numbers of systems sold or disseminated.
This data will be monitored by local consultants and the project management and compared to
baseline figures. These data will be included in each interim report. Finally, the third type of
indicator will be the amount of financing support provided by TREDF to identified companies.
This information will be provided (on a confidential basis) to the steering committee of the project.
(TREDF prefers that its loan portfolio information be kept confidential). These will be evaluated
against project, national, regional, and GEF operational program objectives relevant to the
project.

Altogether, four interim reports and one final report will be prepared for the project. These will be
prepared by the ESDA management team with the assistance of the country consultants. As
mentioned above, meetings of the steering committee will regularly assess progress of the
project. Should there be a need to modify planned activities, such modifications will be proposed
to UNEP's GEF office. In steering committee meetings, a record will be made of the next 6-
month planned activities.

Reports, indicators (as described above, without TREDF loan information) and management
plans will be shared with and reviewed by national project teams (consultants, Government
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energy offices and companies), and by the steering committee at project mid-term and upon
project completion.


Table 6. Project Monitoring and Evaluation/ Project components

      Project components         Monitoring and evaluation            Critical Assumptions and Risks

                                 Meeting Reports/Paper Documents
1.   Meeting: PV and the Rural     Workshop reports                     The economic climate in each of the
     East African Energy           Training session reports              countries will remain healthy
     Sector                        Inter-country visit reports          International PV companies remain
                                   Data bases of companies and           interested in the East African market
2.   Market Assessment in           individuals involved in PV           The climate is favorable for TREDF to
     Target Regions of each         business in national and target       invest in companies
     Country.                       regions                              Companies will be interested in taking
                                   Estimated PV sales records in         equity loans from TREDF
3.   Business Opportunity           target regions                       Prices for PV equipment continue to
     Awareness Raising and         Records of awareness raising          remain stable
     Business Assistance            activities                           Companies in the participating countries
                                   Project records of installed          and target regions will accept the
4.   Technician and Sales           systems                               project’s view that there is a large SHS
     Training                      Market assessment reports             market in the target district
                                   Attendance records at meetings       The various players (international,
5.   International PV Company                                             national, district) will be willing to work
     Visits & Product                                                     with the project and each other to
     Awareness Seminars       Official project reports                    develop business linkages
                                  Semi-annual project                   The major projects (ERT Uganda, EAP
6.   Inter-Country Exchange        implementation reports                 Ethiopia, UPPPRE, etc) will be willing to
     Visits & International       Documentation of GEF/UNEP              work with the project
     Visits                        and Project coordination
                                   supervision missions inspecting
7.   Awareness Raising             field work
     Campaigns

8.   Policy Workshops

9.   Finance Workshops

10. Awareness raising and
    promotion




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BIBLIOGRAPHY
  1. Acker, H. Richard, &Kammen, M. Daniel, The Quiet (Energy) Revolution: Analyzing the
     dissemination of Photovoltaic Power Systems in Kenya. Draft, New Jersey, October
     1994
  2. Bess, Mike and Hankins Mark, Photovoltaic Power to the People: The Kenya Case.
     UNDP/ESMAP, Washington DC, January 1994.
  3. Cabraal, Anil/Cosgrove-Davies, Mac/Schaeffer, Loretta, World Bank Best Practices of
     Photovoltaic Household Electrification Program, Lessons from Experiences in Selected
     Countries, Washington DC August 1996
  4. IGAD Regional Household Project No 7 ACP RPR 527: IGAD Eritrea PV Solar Home
     System Market Study: The Potential for Commercial PV as a Complementary Tool for
     Off-Grid Rural Electrification, Energy Alternative Africa Nairobi 2001
  5. IGAD Regional Household Project No 7 ACP RPR 527: IGAD Ethiopia PV Solar Home
     System Market Study: The Potential for Commercial PV as a Complementary Tool for
     Off-Grid Rural Electrification, Energy Alternative Africa Nairobi 2001
  6. IGAD Regional Household Project No 7 ACP RPR 527: Solar Photovoltaic Business
     Opportunity Awareness workshop for Eritrea. Workshop Proceedings, Energy Alternative
     Africa Nairobi 2001
  7. Mbise H.(2002) Draft Report on Background Information on PV Technology in Tanzania.
     Dar es Salaam 2002.
  8. Musinga, Muli; Hankins, Mark; Hirsch, Danielle and de Schutter, Joop, Kenya Photo-
     Voltaic Rural Energy Project (KENPREP), Results of the 1997 Market Survey, Energy
     Alternatives AFRICA, Kenya Rural Enterprise Program, Ecotec Resources BV, 1997
  9. Samere H, Zemenfes T. (2001) Current Energy Utilization and Future Options in Rural
     Areas. African Energy Policy Research Network, Eritrea.
  10. World Bank UGANDA Energy for Rural Transformation Project: Project Appraisal
      Document. Africa Regional Office, AFTEG. 2002
  11. World Bank ESMAP, PV Electrification in Rural Kenya, A Survey of 410 Solar Home
      Systems in 12 Districts: Final report. Washington, November 1997.
  12. World Bank ESMAP: Uganda Rural Electrification Strategy Study, Washington. 1999




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Annexes
Annex 1:   Stakeholder Contact List
Annex 2:   Project Budget (see attached Excel file)
Annex 3:   Country Summaries (see attached file)
Annex 4:   Country Meeting Notes Tanzania
Annex 5:   Country Meeting Notes Uganda
Annex 6:   Country Meeting Notes Eritrea
Annex 7:   Country Meeting Notes Ethiopia
Annex 8:   SDG Brochure




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      Annex 1: Stakeholder Contact List

      Tanzania

Name and                   Organization                     Address
Designation
Private Companies
Mr. F. Kibhisa Managing    Rex Investment Ltd.              P. O. Box4836
Director                                                    DSM.
                                                            Tel. 022-2180 109
                                                            fkibhisa@yahoo.com
Mr. E. D. Haule            Likungu Investments (T) Ltd.     P. O. Box 972, DSM,
Technician                                                  Tel:22-2864443
                                                            liku-haule@yahoo.com
Mr. J. W. J. van der       Umeme Jua LTD,                   P. O. Box 26, DSM
Linden                                                      Tel. 0741-455271
Managing Director                                           j.vanderlinden@umemejua.com
Mr. B. Hanga Electrical    BP Tanzania LTD.,                P. O. Box 9043,
Engineer                                                    DSM
                                                            Tel: 22-2 111269-72
                                                            hangabg@ar1.bp.com
Eng. W. Kipondya           Fredka International LTD.        P. O; Box 8080, DSM,
Director                                                    Tel. 022-2118438
                                                            fredka@fredka-tz.com
F. N. Simfukwe             Dynamic Control Systems Ltd.     P.O. Box 63114, DSM
                                                            Tel: 022-2138398
                           GESCO LTD.,                      P. O. Box 71358,
David Tubet                                                 DSM.
Marketing Manager                                           Tel. 2421104
                                                            Gesco137@hotmail.com
Mr. A. H. R. Ilanga        Solar Energy (T) LTD.,           P. O. box 32597, DSM
Solar and radio                                             Tel. 0744-307440 or 0744 282563
Communication                                               allyilanga@yahoo.com
Engineer
Dr. S. Kawambwa            University Consultancy Bureau    P. O. Box 35078 DSM
Senior Lecturer                                             Tel. 2410376/0741-331995
                                                            ipi.udsm@ac.tz
Mr. E. Indeche             Choride Exide Tanzania,          Dar es Salaam
Representative             Tunakopesha LTD.,                DSM
International
Jim Finucane               World Bank ERT Program           shs@idola.net.id
(consultant)               (GEF PV component)
Mr. V. Akim                United Nations Industrial        P. O. Box 9182,
National Program Officer   Development Office               DSM.
(Industrial                                                 Tel: 22-2112527
Development)                                                Victor.akim@undp.org
NGO
Dr. Cuthbert Kimambo       Tanzania Solar Energy            P. O. Box 35046, DSM
Chairman                   Association (TASEA)              Tel. 2410410.
                                                            mchijo@yahoo.com
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Dr. M. Chijoriga         University Consultancy Bureau      P. O. Box 35046, DSM
Senior Lecturer                                             Tel. 2410410.
                                                            mchijo@yahoo.com
Prof. R.T. Kivaisi       University Consultancy Bureau      P. O. Box 35063, DSM
Professor                                                   Tel. 2410410
                                                            kivaisi@hotmail.com
Eng. Exaud Mushi         Nordplan                           DSM

Mr. E. Sawe              Executive Director                 TaTEDO,
                                                            P.O. Box 32794,DSM
                                                            Tel. 2700771
                                                            tatedo@raha.com
Government
Eng. N. C. Mwihava       Ministry of Energy & Minerals,     P. O. Box 2000, DSM
Ag. Asst. Commissioner                                      mwihava-mem@raha.com.
for Energy (Renewable
Energy)
Eng.Hosea Mbise          Ministry of Energy & Minerals,     P. O.Box 2000,
Engineer                                                    DSM
Eng. Flora               Tanzania Electricity Supply        TANESCO
 Engineer                Company (TANESCO)                  DSM
Katrin Lervik            UNDP Solar Project                 P. O. Box
Program Officer                                             DSM
                                                            katrin.lervik@undp.org
Mr. A. R. Rajabu         Dept. of Environment
Permanent secretary      Vice Presidents Office             DSM
Finance
Mr. N.T. J. Sigweto      National Microfinance Bank         P.O. Box 9213 DSM.
Banker                   (NMB) LTD.,                        Tel: 22-2128146
                                                            ntjsigwejo@nmb.co.tz


       Eritrea
Name and                 Organisation                       Address
Designation
Private Companies
Dawit Maharay            DM Electrical Engineering          Meda Bahti Meskerem
Proprietor                                                  PO BOX 5783. Asmara, Eritrea
                                                            Tel: 291 1 126737
                                                            Fax: 291 1 201534 or 122233
Tekhle Ghebre-Medhin /   Asmara Solar                       Asmara
Dieter Hoppe                                                Tel: 291 122616
                                                            siemans@eol.com.er
                                                            hannelore.hoppe@t-online.de
Samuel Berhane           Hydro Construction PLC             Asmara
                                                            Tel: 291 121818
                                                            hydro@gemel.com.er
Hailu Negusse            Import Export, Commission          Tel: 291 201334
                         Agent & Business Consultant        Walta@gemel.com.er
International
Sergio Paladini          Italian Cooperation                Tel: 291 124563
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Damian Borendorf/Marc     European Union                   Tel: 291 126566
Stalmans
Emmanuel Ablo,            World Bank                       Tel: 291 124302 eablo@worldbank.org
Resident Representative
Vibeke Mortensen          Royal Danish Embassy             Tel:            291             124336/47/48
                                                           asmamb@asmamb.um.dk
Lis Truelson, Honorary    Consulate of Sweden Asmara       Tel: 291 122302
Consul & SIDA liaison                                      swedcons@eol.com.er

Government
Samuel Baire              Ministry of Energy & Mines       P.O.Box 5285, Asmara
Director General Energy                                    Tel: 291 121541
Dept                                                       samuel@ec1.doe.gov.er
Semere Habtetsin          Ministry of Energy & Mines       P.O.Box 5285, Asmara
Director Energy Mgmt                                       Tel: 291 121541
and Dev                                                    Fax: 291 1 127652
                                                           samere@ec1.doe.gov.er
Kidane Tseggai            Ministry of Local Government     Asmara
Director General                                           Tel: 291 117634
Mr. Zemerit               Ministry of Information          Asmara
                                                           Tel: 291 121301
Tadesse Beraki            Ministry of Energy & Mines
Economist, Energy Dept
Finance
Mr. Kifle                 Rural Enterprise Unit            Asmara
                                                           Tel: 291 202550/48/49
The Manager               Investment Bank of Eritrea       Asmara

The Manager               Commercial Bank of Eritrea       Asmara

The Manager               Housing and Commerce Bank        Asmara

The Manager               ECDF (Min Loc Gov) 85 rural      Asmara
                          banks

      Uganda.
Name and Designation            Organisation                    Address
Private Companies
Henry Nganwa                    Incafex Solar Stystems          Plot 9 Bombo Rd. Kampala
Managing Director

Johnson Irumba                  Magric (U) Ltd.                 103 Jinja Rd.
Sales Manager                                                   PO Box 3218 Kampala
                                                                Tel: 041 232100/ 259646/ 342513/ 256220
                                                                Fax: 041 344606
                                                                magric@imul.com




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Herbert Winyi,                 Solar Energy for Africa, Ltd.    Nitco House
Marketing Manager                                               PO Box 41544 Kampala
                                                                Tel: 041 250131 Fax: 041 250131
                                                                solar-sgu@africaonline.co.ug
Richard Kanyike,               Solar Energy Uganda              Plot 14 Wilson St., Twese Building
General Manager                                                 P.O. Box 27392 Kampala
                                                                Tel: 041 250920 Fax: 041 232114
                                                                soenergy@africaonline.co.ug
Emmy Kimbowa                   Energy Systems Ltd.              Get-In House, 3 William St
Chairman/CEO                                                    PO Box 25928 Kampala
                                                                Tel/ Fax: 041 349055
                                                                kim_emmy2001@yahoo.co.uk
Kithinji Musyoka               Sollatek (U) Ltd.                12 Wampewo Ave
General Manager                                                 PO Box 7742 Kampala
                                                                Tel: 041 349800 Fax: 041 342778
                                                                sollatek@swiftuganda.com
Kamya Ezekiel,                 UGA Solar Suppliers Ltd.         Chambers of Commerce Building Rm 9 Plot 12
Operations Mgr                                                  Johnstone St.
                                                                PO Box 8535 Kampala
                                                                Tel: 041-344809
                                                                ugasolar@africaonline.co.ug
International
Jim Finucane (Consultant)                                       shs@idola.net.id
World Bank
Paul Nteza                     UNDP GEF/SGP                     PO Box 7184 Kampala
Program Assistant                                               Tel: 041 344801
                                                                Fax: 041 346454
                                                                gefsgp@infocom.co.ug
Mukasa Joseph                  Uganda Renewable Energy          Amber House 2nd Floor Room B 201
Chairman                       Assn.(UREA)                      PO Box 24577 Kampala
                                                                Tel: 041-349276, 344809
                                                                Fax: 041 349342
                                                                joshua-urea@utlonline.co.ug
PROJECTS
UPPPRE                         Ministry of Energy         and   Amber Hse.
                               Mineral Development              P.O.Box 7270, Kampala
                                                                Tel: 256 41 257863
                                                                 Fax: 256 41 230220
                                                                evelyn.upppre@infocom.co.ug
Private Sector Foundation
(Handling Financial Part of
ERT)
Energy        for      Rural   Ministry of Energy         and   Amber Hse.
Transformation (World Bank     Mineral Development              P.O.Box 7270, Kampala
Project)                                                        Tel: 256 41 257863
                                                                 Fax: 256 41 230220

Government




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Alessandra Sgobbi           Ministry of Finance, Planning     Finance Building, Nile Ave.
Environmental Economist     and Economic Development          PO Box 8147, Kampala
                                                              Tel:041 234700/2/3 ext 216
                                                              Fax: 041 251793
                                                              socserve@africaonline.co.ug
Godfrey Turyahikayo         Ministry of Energy         and    Amber Hse.
Commissioner of Energy      Mineral Development               P.O.Box 7270, Kampala
                                                              Tel: 256 41 257863
                                                               Fax: 256 41 230220
                                                              evelyn.upppre@infocom.co.ug
Philippe Simonis            GTZ/Ministry of Energy and        Amber House Rm A205
GTZ Energy Advisor          Mineral Development               PO Box 10346 Kampala
                                                              Tel: 041 234165 Fax : 041 234165
                                                              simonis@africaonline.co.ug


       Ethiopia

Name and Designation        Organisation                     Address
Private Companies
Mulugeta Girma              Direct Solar Energy              Box 19244 Addis Ababa
Director                                                     Tel: 251-1-769476
                                                             Fax: 251-1-505302
Dr. Tesfaye Bayou           Solatec Trading                  Box 30792 Addis Ababa
General Manager                                              Tel: 251-1-631467
                                                             Fax: 251-1-512219
                                                             tesfa_bayu@hotmail.com
Solomon Degefu              Lydetco P.L.C                    Box 3593 Addis Ababa
Manager, RE                                                  Tel: 251-1-660267, 663189
                                                             Fax: 251-1-650767
                                                             lydet@telecom.net.et
Tadesse Tilahun             Shell Ethiopia LTD.              Tel:251 1 653351
Chairman                                                     Fax:251 1 653321
Kassa W/senbet              Beta Electrical Control          Box 18134 Addis Ababa
General Manager                                              Tel: 251 1 50382; 525490
                                                             Fax:251 1 525490
                                                             route@telecom.net.et
Carlo Pironti               Nigist Solomon Mekuria           P.O Box 100692 Addis Ababa
 Manager                    /CERD                            Tel: 251 1 66826
                                                             cpironti@mind
International
World Bank
African Development Bank
Pancrase Niyimbona Energy   UNECA                            Mekanisa
affairs Officer                                              Box 3005 Addis Ababa
                                                             Tel: 251 1 443544; 513038
                                                             pniyimbo@uneca.org
Hiwote Teshome / Trudy      GTZ                              P.O Box 5329 Addis Ababa
Kdnemunde                                                    Tel: 251 1 516558
HE Advisor
Government
                                                         UNEP-GEF Medium Grant Proposal
                             Commercial Dissemination Networks for Household PV Systems
                                                                                Page 59
                                                       Energy for Sustainable Development, Africa


Dr. Teketel Abebe             Addis Ababa University         Tel : 251 1 291673
 Lecturer
Alemayehu Negash              Ethiopian    Society      of   Box 27613 Addis Ababa
                              Mechanical Engineers           Tel: 251 09-200968
                                                             ats@telecom.net.et
Ato Aseres                    Ethiopian Rural Energy         Tel: 251 1 510160
                              Development         and
                              promotion Center
Dr. Tewolde                   Environmental Protection       Tel: 251 1 627728
                              Authority                      epa@telecom.net.et
NGO
G/medhin                      Selam     Technical      and   P.O Box 8075 Addis Ababa
Head     Renewable   Energy   Vocational Center              Tel: 251 1 462807
Division                                                     davidr@telecom.net.et
Johannes Abera                SCES                           Box 437 Awassa
                                                             Tel: 6200471

Finance
Woldoye Amehe                 Association of Ethiopian       Box 30019 Addis Ababa
Director                      Microfinance Institute         Tel:251 1 503830
                                                             aemfi@telecom.net.et
Ato. Mendaye                  Sidamo        Development      Awassa
                              Corporation

PROJECTS
Hiwote Teshome                GTZ HHE/protection        of   Tel: 251 1 516558
                              Natural Resources              Fax: 251 1 516558
                                                             biomass@telecom.net.et




                                                           UNEP-GEF Medium Grant Proposal
                               Commercial Dissemination Networks for Household PV Systems
                                                                                  Page 60

								
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