INSTITUTIONAL INFRASTRUCTURE FRAMEWORK FOR PV DEPLOYMENT IN DEVELOPING COUNTRIES

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency

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INSTITUTIONAL INFRASTRUCTURE

FRAMEWORK FOR PV DEPLOYMENT IN DEVELOPING COUNTRIES

Presentation by :

Lara Bertarelli, IED~ SIDA 10th March 2003 ~




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Structure of PresentationStructure of Presentation

Brief overview of the document Why? The importance The Framework

Illustration through an actual project The challenges




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Two Main PV Deployment Two Main PV Deployment Approaches : Approaches : (covered in 2 RPG’s)

Sales Model (market forces) :

Service Models (Rural Electrification Programmes cum Development Programmes)

quality of systems? Low prices preferred to quality, after-sales services? info to consumers? Customer protection? deployment to poorest segments? Availability of credit usually limited

many stakeholders, long-term perspective, management?

Require differing levels of government intervention/ institutional back-up The two should co-exist…




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Direct Sales – Direct Sales – Institutional framework needs:

Certification and standards (+ enforcement) adapted

to national situations

Quality control all along the delivery chain

Public information on PV, components, maintenance

Clear definition of roles of actors

Encourage dealers to offer after-sales services

Development of appropriate financing mechanisms

(see RPGs)




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Institutional Framework Institutional Framework

Fundamental Functions to be performed

The Agents needed to carry them out

Relationships: contract / code of conduct needed between the agents

Facilitation

Installation /maintenance

RegulationPlanning

Operation /Use

Capacity Building/Info

Dissemination

Facilitation

REGULATOR /NGO / PRIVATE

ENTITY

Installation /

maintenance

ENERGYSERVICE

PROVIDER

RegulationPlanning

PUBLICAUTHORITY

Operation /Use

END-USERS ORE-U ASSOC

Financing

Funding

Financing and Funding




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The Public Authority’s functions :The Public Authority’s functions : Planning + Regulation (standards) +

Enforcement + Capacity Building + Information Dissemination

Committed Coherent and co-ordinated strategy Funding modalities Define role of the private sector Monitor & enforce legal obligations

Some functions can be delegated




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Flexible boundaries with End users installation of the equipment maintenance collection of payments

The Energy Service Provider :The Energy Service Provider :

Provision of a service to end-users @ fair prices whilst maintaining quality of service and proper functioning of equipment

its’ role will be dependent on the capabilities of the end-user org. and the type of contract negotiated for




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Concession agreement

Operating contract

The Service ContractThe Service Contract

Ownership remains public (community ownership) Production, operation, maintenance, connection, billing and recovery and specific O&M contract shorter than lifetime of equipment

Total service delegation to an Area progressive coverage obligations Term – technical life of equipment Fixed ceiling fee Payment modalities – concessionaire finance




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End-user OrganizationEnd-user Organization Essential component to long-term

sustainability Administration of billing, collection of

payments, deal with defaults of payment

Protecting end-user interests Providing feedback to public

authority




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Intermediary and capacity builder Full role of a regulatory structure can be

delegated to it Development and provision of tools for service

provider and end-users Proposing standards, developing contracts

collecting data and providing feedback to the public authority

Oversee drafting of contracts, provide support

The Facilitator’s functions :The Facilitator’s functions :




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The Relationships :The Relationships :

FACILITATOR

SERVICEPROVIDER

RegulatorPlanner

(Public Authority)

Follow-up andfeed back

CONSUMERORGANIZATION

Overall implementationframe (concession, ...)

Local servicecontract

Delegateimplementation of

regulatory structure -Performance contract




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Illustration through the Regional Solar Pumping (RSP) programme

funded by the EC




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Location of the programme : The 9 CILSS Countries

Mauritania

Chad

Niger

Gambia

Mali

BurkinaFaso

Senegal

+ Cape Verde

GuineaBissau

626 pumping systems

644 community systems (schools + hospitals)

= 1.3 MWp installed over 12 years

Budget 63 MEuro




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Breakdown of RSP budget (63 M€)

National programmes for

reception infrastructure

46%

Installation of systems

11%

Inverters, pumps and other

components 20%

PV Panels11%

Regional Activities (coordination,TA, tests, monitoring)

12%




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u

u

u

u

u

Local community structure

“Owns”

and manages

the system

SystemManagement

Provision for renewal

Maintenancecontract

Voluntary basis

Cash account

Term account

Initial RSP Institutional Scheme




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Rural MunicipalitiesRural Municipalities

Water Users Association (WUA)

Water Users Association (WUA)

Audit andSupport

Audit andSupport

End usersEnd users

Private operatorPrivate person

Private operatorPrivate person

Water Supply Department

(Control)

Water Supply Department

(Control)

Water Supply

Service contract

Service agreement

Transfer of responsibilities

ControlNegotiate water price

Select the operator

Public Service

AccreditationControl

Follow-upControl

Redefinition ofResponsibilities

Maintenance contract

Maintenance contract




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1. End-user contribution covers :• operating costs• maintenance contract• provision for renewal of pump and inverter (but not the PV

panel or the water tank and tubes)

RSP Initial Financial Rules

3. Payment for water : • fixed fees or per quantity. • Typical water price : 250 FCFA/m3 (0.38 € / m3)

2. 40% to 60% recovery on total water production potential ensures sustainability




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Countries Organisation for the management of the

revenues from water sales

Modality for water

pricing

Water price in local currency

m3 price for domestic use

ASS cost

P3 700-800

Wp

P4 1300-1500

Wp

P5 2300-2500

Wp

P5 3600-3800

Wp

Burkina Faso Village Water Point Committee.

Consumed volume billing (Sourou, Yatenga et Passoré)

Yearly fee (Sissili)

250 FCFA per m3 3500 FCFA per family per

year

0,4 €/m3 0,1 €/m3

€/year in % of the system cost

232 1,5%

316 1,5%

319 0,8%

325 0,6%

Cape Verde private concession, Agence communale de

production et gestion d’eau (APDA)

Consumed volume billing in both cases

40 to 100 CUE/m3 for domestic uses,

30 CUE/m3 for irrigation

0,4 to 1 €/m3

Gambia Village Water Point Committee

Yearly fee 50 à 125 Dallasis per active person and per year

0,13 to 0,33 €/m3


359 1,5%

438 1,3%

491 1,0%

571 0,9%

Guinee Bissau Village Water Point Committee

Yearly fee 3000 Pesos / person/ month # 0,2 €/m3

Mali Village Water Point Committee

some cases of consumed volume billing,

fees on irregular basis

depends on the villages : 200 FCFA /family/month free for domestic use and 6000

FCFA/year for each 0,5 ha (CMDT zone)

0,08 €/m3 €/year in % of the system cost

384 2,2%

398 1,5%

523 1,3%

554 1,0%

Mauritania Private concession. consumed volume billing.

some rare cases of fees.

75 to 100 UM / m3 for drinking water

0,42 to 0,56 €/m3


315 2,2%

393 1,5%

433 1,1%

512 1,0%

Niger Village water point committee

Consumed volume billing

Details not available

0,19 €/m3 €/year in % of the system cost

202 0,9%

219 0,7%

232 0,5%

250 0,4%

Sénégal Village water point committee

monthly fee, except for the case of m3 billing,.

500 to 1000 FCFA /family/month

0,21 to 0,42 €/m3


213 0,9%

261 0,8%

293 0,6%

341 0,6%

Chad Community management with a Water Point Committee (CPE)

semi-urbain management with a committee for water management (CGE)

CPE : monthly fee CGE : consumed

volume billing

CPE : 150 to 350 FCFA

/household/month CGE : 250 FCFA per m3

CPE : 0,06

to 0,15 €/m3 CGE : 0,38

€/m3


127 0,7%

333 1,2%

519 1,2%

912 1,6%

Initial rules have been adapted to national context




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Challenges for the future

2. Emergence of private operators : time, resources, continuity are needed

1. Continuation of the decentralisation process and clarification of roles and responsibilities : need for institutional clarification

3. Build-up audit, control, financial management and support capabilities. Related costs should be included in the price of water




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Do the agents and stakeholders exist? Building the delivery chain (requires appropriate frameworks)

With the required technical, financial, contractual and managerial capacity? (requires to make players and skills available)

Challenges…Challenges…

Are there enough projects / concessions / incentives to entice potential entities to become energy service providers -> project bundling (appropriate financial and contractual instruments)

Issue of enforcement in weak legal contexts




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THANK YOU

Documents

INSTITUTIONAL INFRASTRUCTURE FRAMEWORK FOR PV DEPLOYMENT IN DEVELOPING COUNTRIES