Project Summary

Agro-Industries Tea Industries Sugar, Pulp, forest products, palm oil, grund nuts, sisal & rice Industries COGEN AFRICA Bioenergy GTIEA SHP Excess Power Rural Electrification PACEAA in context:

Generation Distribution Actors: Agroindustry Agroindustry? Local Community? Who? Support: Feasibility Study Rural Electrification Plan O&M O&M, Manegement Negotiation PPA with utility Negotiation PPA with IPP Legal & Regulatory Framewk Legal & Regulatory Framewk Financial Financial Excess Power PPA at what tariff? How much power? Grid Excess Power PPA at what tariff? Clients Agro-Industry Power

The PACEAA Project Objectives Encourage and facilitate the involvement of rural agro-industries in the process of rural electrification, in order to alleviate poverty and contribute to sustainable development.

Specific activities 1. Identify policy, commercial and regulatory barriers restricting the uptake of renewables from agro-industries or IPP’s & develop detailed policy and regulatory guidelines and incentives : Policy & Regulatory Framework Review. Available on: (D1) Training on: Least Cost Rural Electrification (D5) Local Rural Electrification Planning (D6) Business Models (D7) 2. Enhance local and regional capacity of public institutions, private sector for the effective utilisation of cogeneration and other cleaner energy systems from agro-industries in the rural electrification process

Specific activities: 3. promote rural electrification packages for financing by rural electrification funds/ agencies and dedicated donors. 4 local rural electrification plans (Kenya, Malawi, Rwanda, Tanzania) (D3) Business models for rural electrification by agro-industries (D2) Validation and promotion of RE plans (D4) 4. Communication & Dissemination Activities Website: (D8) Internet Based visualisation tool of the local plans (D10) Brochures (D9) Articles & publications… (D12) Final workshop : March2010 in Nairobi in parallel to the AGM of The Club of Rural Electrification Agencies (D11)

RE Plans & Packages for : Kipchoria SHP, Nandi, KE (presented to key stakeholders: 20th July ’09 & 16th June & 5th-7th July 2010) Giciye SHP, RW (presented to key stakeholders: 15th Oct. ’09 & 23-25th June 2010) Suma SHP, Tukuyu, TZ (presented to key stakeholders: 1st Oct. ’09 & 28th to 1st July 2010) Ruo SHP, Mulanje, MW (presented to key stakeholders: 6th Aug. ’09 & 18th-22nd June 2010) Result from on site investigations, surveys & data collection & close consultation with key stakeholders and with assistance from TF’s

Adaptation to the initial concept only tea, no sugar : Sugar factories are grid connected & large projects Tea factories more rural, more potential for non- grid R.E. Partly also because of timing

Capacity Building activities: (1/2) National Local Rural Electrification Planning & Business Models : Kenya: 28th to 31st July (23 participants) Malawi: 3rd to 5th August (25 participants) Tanzania: 6th to 9th October (19 participants) Rwanda: 19th to 22nd October (29 participants) Total: 96 participants v.s. a target of 60 participants for all training session. Target group: institutions (Ministry of Energy, Utility, Regulator and Agency responsible for rural electrification; NGO’s, private contractors & consultants working on RE planning)

Capacity Building activities: (2/2) Regional Least Cost Rural Electrification Design : 12th –16th July, Kigali Event in partnership with the Club-ER & BTC, MININFRA 33 participants from : Burundi (1), Kenya (5), Malawi (3), Rwanda (15), Tanzania (4), Uganda (2), Zimbabwe (1) Ministry of Energy, Utility and Agency responsible for RE 1 delegate from Partnership Dialogue Facility (EUEI PDF) Also Invited delegates from Botswana, Ethiopia, Ghana, Mozambique, Nigeria

Final Workshop: Organised in partnership with the CLUB-ER, a network of African Rural Electrification Agencies (Mombasa, march 2010) 27 participant countries : Benin, Botswana, Burkina Faso, Burundi, Cameroon, Congo, Ivory Coast, Ethiopia, Gabon, Guinea, Kenya, Madagascar, Malawi, Mali, Morocco, Mauritania, Mozambique, Niger, Nigeria, Republic of Central Africa, Democratic Republic of Congo, Rwanda, Senegal, Tanzania, Chad, Togo and Uganda

Common Characteristics of projects: RE projects relatively small Small share of the total SHPP output SHPP can cover most of the RE demand RE tariff high Long pay back periods – social investment

Project Key Challenges: Timing with GTIEA Feasibility Studies Rural electrification a social investment – relying on agro-industries CSR or their interest in building a long-term relationship with the outgrowers Building the capacity of those actors who want to be responsible for power distribution in rural areas A neutral body (REA?) that assists with the negotiation of the PPA between the two parties Lack of financing for small scale projects In some countries (Rwanda) regulatory & policy bottlenecks remain

Project Partners: UNEP Risø Centre, Denmark IED, France UNEP DTIE, France Sub-contractors: EATTA, Kenya – GTIEA project AFREPREN/FWD, Kenya – COGEN for Africa project Project website: