1. ASEP-PVM PROGRAM DESIGN What Bidders Need to Know
Ian Driscall
World Bank Consultant

2. Project Goals
Supply and install 40,500 Solar Home Systems (SHSs) in far flung rural households (HHs) unlikely to be reached by the grid
Solar as Service (SaaS) model with two service levels (with/without TV or multimedia player)
SHSs are owned by the Electric Cooperatives (ECs)
Operation and maintenance by the ECs – who will collect a full cost recovery monthly regulated benchmark tariff
Sustainability is all!
Build international supply chains for solar products into the Philippines
Encourage complementary CSR activities (e.g. additional systems, income generation, remote school/clinic etc. electrification)
Develop commercial Solar Business Units in the ECs that extend beyond SHSs into appliances, pico systems and larger systems

3. Achieving Sustainability
Quality Certification (LG, Li-ion batteries)
Scale implementation
Prepaid service delivery
Dedicated Business Unit with strict NEA performance oversight
Careful HH Market Segmentation

4. Bidding and Installation Process
Feb/Jul 2017
start
Jul 2017 onwards
Plus 3 months
Jan 2017
Feb – May 2017
Define Bid Lots
Which ECs?
Which HHs?
Bid & Award
Service levels?
Technical specs?
Qualified systems?
Prequalification
Two bidding windows
Signup HHs
Demo systems
IEC & marketing
Sign up HH as member-consumer and collect deposit
Head start??
EC sweat equity needed!
Supply & Install
Winning bidder installs
Validate & Pay Suppliers
Independent verification
Payment of supplier

5. Define Bid Lots – Which ECs?
Scale has to be significant to sustain EC management’s attention
51,400 SHS

6. Define Bid Lots – Which HHs?
Remote sensing (VIA) for rapid HH identification – consider:
Clustered vs. dispersed?
Ancillary buildings
Statistical sampling for affordability
Profile HH monthly income and energy spend
Set cutoffs for each service level

7. Define Bid Lots – Which HHs, cont.?
End of distribution network (SEP) – departure point
Sample area

8. Getting to the Sample Area

9. Typical Households

10. Preliminary HH Survey Results (sample size =73)
Need to include dispersed HH who can afford – so prepaid essential
Ancillary structures factor = 44%
Assuming 8% rural HH spend on energy, can serve 45% of HH at higher service level (Php 250/mo), another 10% at lower level (Php 200/mo)
Seasonality of income is an issue
Kerosene expenditures are suppressed by widespread solar/rechargeable lantern use – average Php 150/mo for 2.5hrs/day
60% of HH have radios (Php 20/mo for dry cells)
50% have cellphones despite poor signal (mostly for texting) – spend Php 90/month on load and charging
TV is a game changer if HH can afford
10%: 50%, 65% 12%: 63%, 80%

11. Sign Up Households Sign up process includes:
Intensive marketing and IEC – ideally with demo systems, presentations/videos in local language and poster leave behinds
Confirmation of adequate year-round HH income to support the service level requested
Need to handle rejection of some customers
Final decision remains the ECs
EC Member-Consumer orientation, registration and collection of Php 5 membership fee
Collection of Php 250 customer contribution for SHS
Registration (inc. geotagging) within the billing/vending system
Timing of sign up yet to be decided - major task for the ECs – two options:
Start sign up as soon as remote sensing complete (head start)
Sign up in parallel with installation

12. Supply and Install Supply and install process includes:
Delivery of systems to distribution points within large clusters
Panel installation ensuring waterproof seal on roof
Installation and testing of SHS module
Customer orientation in module use

13. Next Steps Target ECs to identify off-grid areas for remote sensing
End Sep 2016
Complete remote sensing
End Dec 2016
Define bid lots by EC by service level
Jan 2017
Decide how many ECs will be in the first bidding round (e.g. 3 X 5,000 or 7 X 2,000 with remaining SHS within an EC included in second bidding round
Develop logistics plan for sign up / supply and install
Feb 2017
Decide on timing of sign up process and begin sign up if it is to be done in advance

14. Thanks for listening! Questions please!