Mini Grid Licensing - Revision history

Ranisha: /* Further information */

2022-07-05T13:54:23Z

Further information

Ranisha at 13:20, 5 July 2022

2022-07-05T13:20:23Z

Ranisha: /* Overview */

2022-07-05T13:19:25Z

Overview

Ranisha: /* Overview */

2022-07-05T13:17:29Z

Overview

Ranisha at 09:47, 4 July 2022

2022-07-04T09:47:26Z

Ranisha at 13:56, 13 October 2016

2016-10-13T13:56:59Z

Cesar Patino: /* Further information */

2016-10-13T12:57:17Z

Further information

Cesar Patino: /* References */

2016-10-13T12:54:54Z

References

Cesar Patino: /* Overview */

2016-10-13T12:53:59Z

Overview

Ranisha at 12:47, 13 October 2016

2016-10-13T12:47:07Z

@@ Line 1: / Line 1: @@
 === Overview ===
-In many countries, licensing of mini-grids still remain a hurdle for developers to scale up and reach economies of scale. The regulatory requirements are complex and time consuming and often is not clear which authority is responsible for which component. On average, licensing of a mini-grid site takes 26 weeks and for each new 100 kW site, the developers have to repeat the approval process. <ref name=":0" /> In some countries, the developer have to even wait even longer and it is often not clear if and when will they receive their license. For e.g., in 2021 in Senegal, out of five companies that have applied for a license, only one got it and leaving the rest in limbo. In Democratic Republic of Congo, the level of bureaucracy varies from one region to another and this coupled with corruption rate makes the licensing process time-consuming, hindering the mini-grid deployment.<ref>EnDev (2021).Tiers, Markets, Sustainability: Trends in Rural Off-Grid Electrification. https://endev.info/wp-content/uploads/2021/07/EnDev_Learning_and_Innovation_Agenda_Rural_Electrification.pdf</ref>
+In many countries, licencing of mini-grids still remain a hurdle for developers to scale up and reach economies of scale. The regulatory requirements are complex and time consuming and often is not clear which authority is responsible for which component. On average, licencing of a mini-grid site takes 26 weeks and for each new 100 kW site, the developers have to repeat the approval process. <ref name=":0" /> In some countries, the developer have to even wait even longer and it is often not clear if and when will they receive their licence. For e.g., in 2021 in Senegal, out of five companies that have applied for a licence, only one got it, leaving the rest in limbo. In other countries such as the Democratic Republic of Congo, the level of bureaucracy varies from one region to another and this coupled with corruption rate makes the licensing process time-consuming, hindering the mini-grid deployment.<ref>EnDev (2021).Tiers, Markets, Sustainability: Trends in Rural Off-Grid Electrification. https://endev.info/wp-content/uploads/2021/07/EnDev_Learning_and_Innovation_Agenda_Rural_Electrification.pdf</ref>
-Hence, strategies such as shortening of licensing period, simplified and clear regulatory framework for licensing and bulk licensing of mini-grids portfolios instead of individual licensing for each 100 KW project could greatly support the sector. <ref name=":0">AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>
+Hence, strategies such as shortening of licensing period, simplified and clear regulatory framework for licencing and bulk licencing of mini-grids portfolios instead of individual licensing for each 100 KW project could greatly support the sector. <ref name=":0">AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>
-Figure 1: Licensing period for different countries as of 2020 (based on AMDA's report where they interviewed 35 mini-grid developers).<ref name=":0" />
+Figure 1: Licencing period for different countries as of 2020 (based on AMDA's report where they interviewed 35 mini-grid developers).<ref name=":0" />
 [[File:Licensing period for mini-grids.png|center|thumb|500x500px|AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki>]]
-=== Publication: How do we license it? ===
+=== Publication: How do we licence it? ===
 [[File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|border|right|180px|ProSolar Licensing Guidebook|alt=ProSolar Licensing Guidebook|link=https://energypedia.info/images/5/56/GIZ2016-ProSolar-Licensing-Guidebook.pdf]] [[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|This guidebook]] has been compiled following the development of a pilot hybrid mini-grid project in [[Kenya Energy Situation|Kenya]]. The project consists of a solar-hybrid generation plant of 50 kW, a low voltage (LV) power distribution network in [https://www.youtube.com/watch?v=SkuOWcgH_0I Talek] centre, Narok County and a prepaid metering system. While the project provides electricity to the surrounding community, it is also meant to act as a learning tool for all mini-grid stakeholders in Kenya, supporting the Government’s rural electrification efforts while helping to establish an effective solar hybrid mini-grid policy.<br/>A private sector-driven approach was replicated through the creation of a Special Purpose Vehicle (SPV), the Talek Power Company, which is meant to be transferred to the Government of Kenya. The Talek Power Company had to go through all the steps of licensing as an energy service company.<br/>This guidebook captures the lessons learnt from the Talek Power Company experience on the licensing process and acts as a tool to facilitate the licensing process for [[:Category:Mini-grid|mini-grid]] project developers. Here you will find practical guidance on each of the steps of the licensing pathway.<br/>In the annexes are sample documents utilised during the licensing process, provided for the purpose of illustration only. The use of these annexes and any adaptation must be done with the support of appropriate professionals.<br/>''The authors of this material do not bear any liability resulting from an improper use of the provided annexes''.
@@ Line 32: / Line 32: @@
 '''It should be noted that an integrated mini-utility operator can apply simultaneously for generation, distribution and supply licences''' . Also, prior to any construction or installation activity, the operator or project developer must have environmental clearance in the form of an environmental and social impact assessment (ESIA) licence issued by the National Environmental Management Authority (NEMA).<br />If the operator is a company, proof of registration is the Company Registry Form 12 (CR12). The licensed applicant and facility operator must be registered and domiciled in Kenya.
 == Further information ==

@@ Line 4: / Line 4: @@
 Hence, strategies such as shortening of licensing period, simplified and clear regulatory framework for licensing and bulk licensing of mini-grids portfolios instead of individual licensing for each 100 KW project could greatly support the sector. <ref name=":0">AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>
-Figure 1: Licensing period for different countries as of 2020 (based on AMDA's report where they interviewed 35 mini-grid developers).<ref>AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>
+Figure 1: Licensing period for different countries as of 2020 (based on AMDA's report where they interviewed 35 mini-grid developers).<ref name=":0" />
 [[File:Licensing period for mini-grids.png|center|thumb|500x500px|AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki>]]

@@ Line 1: / Line 1: @@
 === Overview ===
-In many countries, licensing of mini-grids still remain a hurdle for developers to scale up and reach economies of scale. The regulatory requirements are complex and time consuming and often is not clear which authority is responsible for which component. On average, licensing of a mini-grid site takes 26 weeks and for each new 100 kW site, the developers have to repeat the approval process. <ref name=":0" /> In some countries, the developer have to even wait even longer and it is often not clear if and when will they receive their license. For e.g., in 2021 in Senegal, out of five companies that have applied for a license, only one got it and leaving the rest in limbo. In Democratic Republic of Congo, the level of bureaucracy varies from one region to another and this coupled with corruption rate makes the licensing process time-consuming.<ref>EnDev (2021).Tiers, Markets, Sustainability: Trends in Rural Off-Grid Electrification. https://endev.info/wp-content/uploads/2021/07/EnDev_Learning_and_Innovation_Agenda_Rural_Electrification.pdf</ref>
+In many countries, licensing of mini-grids still remain a hurdle for developers to scale up and reach economies of scale. The regulatory requirements are complex and time consuming and often is not clear which authority is responsible for which component. On average, licensing of a mini-grid site takes 26 weeks and for each new 100 kW site, the developers have to repeat the approval process. <ref name=":0" /> In some countries, the developer have to even wait even longer and it is often not clear if and when will they receive their license. For e.g., in 2021 in Senegal, out of five companies that have applied for a license, only one got it and leaving the rest in limbo. In Democratic Republic of Congo, the level of bureaucracy varies from one region to another and this coupled with corruption rate makes the licensing process time-consuming, hindering the mini-grid deployment.<ref>EnDev (2021).Tiers, Markets, Sustainability: Trends in Rural Off-Grid Electrification. https://endev.info/wp-content/uploads/2021/07/EnDev_Learning_and_Innovation_Agenda_Rural_Electrification.pdf</ref>
 Hence, strategies such as shortening of licensing period, simplified and clear regulatory framework for licensing and bulk licensing of mini-grids portfolios instead of individual licensing for each 100 KW project could greatly support the sector. <ref name=":0">AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>

@@ Line 1: / Line 1: @@
 === Overview ===
-In many countries, licensing of mini-grids still remain a hurdle for developers to scale up and reach economies of scale. The regulatory requirements are complex and time consuming and often also not clear which authority is responsible for which component. On average, licensing takes 26  weeks and for each 100 kW site, the developers have to go through the approval process. Thus, strategies such as shortening of licensing period, simplified and clear regulatory framework for licensing, bulk licensing of mini-grids portfolios instead of individual licensing for each 100 KW project could greatly support the sector. <ref>AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>
+In many countries, licensing of mini-grids still remain a hurdle for developers to scale up and reach economies of scale. The regulatory requirements are complex and time consuming and often is not clear which authority is responsible for which component. On average, licensing of a mini-grid site takes 26 weeks and for each new 100 kW site, the developers have to repeat the approval process. <ref name=":0" /> In some countries, the developer have to even wait even longer and it is often not clear if and when will they receive their license. For e.g., in 2021 in Senegal, out of five companies that have applied for a license, only one got it and leaving the rest in limbo. In Democratic Republic of Congo, the level of bureaucracy varies from one region to another and this coupled with corruption rate makes the licensing process time-consuming.<ref>EnDev (2021).Tiers, Markets, Sustainability: Trends in Rural Off-Grid Electrification. https://endev.info/wp-content/uploads/2021/07/EnDev_Learning_and_Innovation_Agenda_Rural_Electrification.pdf</ref>
 Figure 1: Licensing period for different countries as of 2020 (based on AMDA's report where they interviewed 35 mini-grid developers).<ref>AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>

@@ Line 1: / Line 1: @@
-== Overview ==
+=== Overview ===
-[[File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|border|right|180px|ProSolar Licensing Guidebook|alt=ProSolar Licensing Guidebook|link=https://energypedia.info/images/5/56/GIZ2016-ProSolar-Licensing-Guidebook.pdf]] [[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|This guidebook]] has been compiled following the development of a pilot hybrid mini-grid project in [[Kenya Energy Situation|Kenya]]. The project consists of a solar-hybrid generation plant of 50 kW, a low voltage (LV) power distribution network in [https://www.youtube.com/watch?v=SkuOWcgH_0I Talek] centre, Narok County and a prepaid metering system. While the project provides electricity to the surrounding community, it is also meant to act as a learning tool for all mini-grid stakeholders in Kenya, supporting the Government’s rural electrification efforts while helping to establish an effective solar hybrid mini-grid policy.<br/>A private sector-driven approach was replicated through the creation of a Special Purpose Vehicle (SPV), the Talek Power Company, which is meant to be transferred to the Government of Kenya. The Talek Power Company had to go through all the steps of licensing as an energy service company.<br/>This guidebook captures the lessons learnt from the Talek Power Company experience on the licensing process and acts as a tool to facilitate the licensing process for [[:Category:Mini-grid|mini-grid]] project developers. Here you will find practical guidance on each of the steps of the licensing pathway.<br/>In the annexes are sample documents utilised during the licensing process, provided for the purpose of illustration only. The use of these annexes and any adaptation must be done with the support of appropriate professionals.<br/>''The authors of this material do not bear any liability resulting from an improper use of the provided annexes''.
+Figure 1: Licensing period for different countries as of 2020 (based on AMDA's report where they interviewed 35 mini-grid developers).<ref>AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki></ref>
-== Table of contents ==
+=== Publication: How do we license it? ===
-Link:&nbsp;[[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|ProSolar Licensing Guidebook]]
+This guidebook has been developed as part of a series of handbooks on mini-grids. You can check out the other ones in the following webpages:
-#Introduction 9
+*ProSolar 2016 factsheets:&nbsp;[[:File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf|ProSolar]]&nbsp;project,&nbsp;Mini-Grids [[:File:Mini-Grids_RBF_Brochure.pdf|Result Based Financing]]&nbsp;(RBF) project.
-#Licensing your mini-grid 11<br/>2.1 Licensing requirements 11<br/>2.2 How to fulfil the requirements 14<br/>2.3 Ten practical recommendations 16<br/>
+==== Case Study: Mini-grids in Kenya ====
-== Mini-grids in Kenya ==
+During installation
 *Solar installer licence (if solar technology is used)
 *Importation licence or permit
-<br/>During operation
+<br />During operation
 *Power generation licence or permit
-*Power distribution licence or permit<br/>
+*Power distribution licence or permit
-*Power supply licence or permit<br/>
+*Power supply licence or permit<br />
 == Further information ==
-This guidebook has been developed as part of a series of handbooks on mini-grids. You can check out the other ones in the following webpages:
+* AMDA and ECA (2022). Benchmarking Africa's Mini-grids Report. <nowiki>https://africamda.org/wp-content/uploads/2022/06/Benchmarking-Africa-Minigrids-Report-2022-Key-Findings.pdf</nowiki>
+* [[Portal:Mini-grid|Mini-grid portal on energypedia]]<br />
 == References ==

@@ Line 1: / Line 1: @@
 == Overview ==
-[[File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|border|right|180px|ProSolar Licensing Guidebook|alt=ProSolar Licensing Guidebook|link=https://energypedia.info/images/5/56/GIZ2016-ProSolar-Licensing-Guidebook.pdf]] [[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|This guidebook]] has been compiled following the development of a pilot hybrid mini-grid project in [[Kenya Energy Situation|Kenya]]. The project consists of a solar-hybrid generation plant of 50 kW, a low voltage (LV) power distribution network in [https://www.youtube.com/watch?v=SkuOWcgH_0I Talek] centre, Narok County and a prepaid metering system. While the project provides electricity to the surrounding community, it is also meant to act as a learning tool for all mini-grid stakeholders in Kenya, supporting the Government’s rural electrification efforts while helping to establish an effective solar hybrid mini-grid policy.<br/>A private sector-driven approach was replicated through the creation of a Special Purpose Vehicle (SPV), the Talek Power Company, which is meant to be transferred to the Government of Kenya. The Talek Power Company had to go through all the steps of licensing as an energy service company.<br/>This guidebook captures the lessons learnt from the Talek Power Company experience on the licensing process and acts as a tool to facilitate the licensing process for [[:Category:Mini-grid|mini-grid]] project developers. Here you will find practical guidance on each of the steps of the licensing pathway.<br/>In the annexes are sample documents utilised during the licensing process, provided for the purpose of illustration only. The use of these annexes and any adaptation must be done with the support of appropriate professionals.<br/>''The authors of this material do not bear any liability resulting from an improper use of the provided annexes''.<br/><br/>
+[[File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|border|right|180px|ProSolar Licensing Guidebook|alt=ProSolar Licensing Guidebook|link=https://energypedia.info/images/5/56/GIZ2016-ProSolar-Licensing-Guidebook.pdf]] [[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|This guidebook]] has been compiled following the development of a pilot hybrid mini-grid project in [[Kenya Energy Situation|Kenya]]. The project consists of a solar-hybrid generation plant of 50 kW, a low voltage (LV) power distribution network in [https://www.youtube.com/watch?v=SkuOWcgH_0I Talek] centre, Narok County and a prepaid metering system. While the project provides electricity to the surrounding community, it is also meant to act as a learning tool for all mini-grid stakeholders in Kenya, supporting the Government’s rural electrification efforts while helping to establish an effective solar hybrid mini-grid policy.<br/>A private sector-driven approach was replicated through the creation of a Special Purpose Vehicle (SPV), the Talek Power Company, which is meant to be transferred to the Government of Kenya. The Talek Power Company had to go through all the steps of licensing as an energy service company.<br/>This guidebook captures the lessons learnt from the Talek Power Company experience on the licensing process and acts as a tool to facilitate the licensing process for [[:Category:Mini-grid|mini-grid]] project developers. Here you will find practical guidance on each of the steps of the licensing pathway.<br/>In the annexes are sample documents utilised during the licensing process, provided for the purpose of illustration only. The use of these annexes and any adaptation must be done with the support of appropriate professionals.<br/>''The authors of this material do not bear any liability resulting from an improper use of the provided annexes''.
@@ Line 16: / Line 14: @@
 #Annexes 21<br/>Annex 1: Approvals and licences for solar PV projects 22<br/>Annex 2: Example of letter to the county government 26<br/>Annex 3: Example of press advertisement 27<br/>Annex 4: Example of supply contract 28<br/>Annex 5: Example of customer service charter 33<br/>Annex 6: Enquiry for supply of electricity 39<br/>Annex 7: Customer complaints handling procedure 41
 == Mini-grids in Kenya ==
@@ Line 36: / Line 33: @@
 '''It should be noted that an integrated mini-utility operator can apply simultaneously for generation, distribution and supply licences''' . Also, prior to any construction or installation activity, the operator or project developer must have environmental clearance in the form of an environmental and social impact assessment (ESIA) licence issued by the National Environmental Management Authority (NEMA).<br/>If the operator is a company, proof of registration is the Company Registry Form 12 (CR12). The licensed applicant and facility operator must be registered and domiciled in Kenya.
@@ Line 56: / Line 51: @@
 <br/>
 [[Category:Solar]]

@@ Line 38: / Line 38: @@
 <br/>
 == Further information ==
@@ Line 46: / Line 47: @@
 *GIZ - ProSolar. [[:File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|Where shall we put it]]? Solar mini-grid site selection handbook. June 2014.
-<br/>
+*ProSolar 2016 factsheets:&nbsp;[[:File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf|ProSolar]]&nbsp;project,&nbsp;Mini-Grids [[:File:Mini-Grids_RBF_Brochure.pdf|Result Based Financing]]&nbsp;(RBF) project.

@@ Line 47: / Line 47: @@
 <br/>
 == References ==
-The German Climate and Technology Initiative GIZ ProSolar – Promotion of Solar-Hybrid Mini-Grids in Kenya. How do we license it? Nairobi. July 2015.&nbsp;<span style="font-size: 13.6px;">Link:&nbsp;</span>[[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|ProSolar Licensing Guidebook]]
+The German Climate and Technology Initiative GIZ [https://www.giz.de/en/worldwide/25332.html ProSolar] – Promotion of Solar-Hybrid Mini-Grids in Kenya. How do we license it? Nairobi. July 2015.&nbsp;<span style="font-size: 13.6px;">Link:&nbsp;</span>[[:File:GIZ2016-ProSolar-Licensing-Guidebook.pdf|ProSolar Licensing Guidebook]]
 <br/>
 [[Category:Mini-grid]]