1. Ministry of Electricity and Energy General Authority for Rural Electricity Rural Energy Access Project OFF GRID RURAL ELECTRIFICATION Service Provider (SP) Functions 1 Prepared By: A.M. Al-Ashwal Project Advisor

2. Introduction SP are interested to expand its services to energy service provision promote the solar home system (SHS) technology, and raise the awareness of the local community on the benefits of the technology 2 OFF GRID

3. Service Providers include: Microfinance Institutions, CAC Bank, Postal Service, Accredited Local Dealers (ALD) Bank of Hope for Microfinance Alkoraimi Bank for Microfinance 3 OFF GRID

4. National Microfinance Foundation End - users Villagers Option 1: credit end-user contract installation maintenance spare parts supply warranty organize educate establish end- users group training information option 1: (subsidized price) (+ service charge) down payment monthly payment option 2: (subsidized price for target districts) (unsubsidized price outside target districts) single payment GARE Special Account For Reinvestment Contract REAP SHS spare parts warranty Project Implementation Contract Coordination Option 2: cash purchase contract installation maintenance spare parts supply warranty technical assistance training iteration 1: once the recollected amount reaches 50% of investment cost, NMF will initiate the procurement process (capital cost-subsidy) Target Districts PV systems suppliers capital cost 4 OFF GRID Cash & Crid

5. 5 Local Service Provider REAP suppliers capital cost SHS spare parts warranty Contract EndUsers Solar Home System installation operation maintenance Contract SHS spareparts warranty electricity services (subsidized price) (+local charges) (+O&Mservicecharge monthly payment organize educate establish association training information REAP MEE/GARE technical assistance training Project Implementation Contract Escrow Account capital cost -subsidy MF Model

6. Service Provider Functions would include: SP offers micro-credit to villagers for the purchase of SHS. With the micro-credit contract, SP installs the system at the premises of the end-user. SP also organizes an end-users group to provide assistance and preventive maintenance, and act as focal point for complaints. GARE & REAP Shall Provide Finance to procure SHS 6 OFF GRID

7. A. Preparation Aspects Location and identification of local branches of microfinance institutions and Banks in each district Convincing SP on the business opportunity, and invite them to visit the on-going demonstration projects. Negotiate rural electrification participation of SP and discuss the terms and conditions of the project. 7 OFF GRID

8. B. Training Aspects Training on installation, operation and maintenance Vocational training for RE systems to produce PV electrical technicians. Introduction/sensitisation workshops, dialogues with energy stakeholders. Organize workshops and dialogues for SP with energy stakeholders. 8 OFF GRID

9. B. Training Aspects Provide Special training on linking finance and delivery of energy services in provision of credit services for higher risk projects Training SP women to work with women consumers Study tours to countries that successfully implemented SHS projects 9 OFF GRID

10. B. Training Aspects Training sessions on technology, funds available, financing structures and mechanisms, delivery of energy projects Development of Yemen specific indicators for funding, monitoring and evaluating energy projects and programs. 10 OFF GRID

11. 11 THANK YOU FOR YOUR ATTENTION OFF GRID