NAE Case Study: Mali, Rural Electrification Programme - Revision history

Ranisha at 14:19, 5 November 2019

2019-11-05T14:19:25Z

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Ranisha: /* Legal Basis */

2019-11-05T14:16:01Z

Legal Basis

Ranisha: /* Objectives */

2019-11-05T14:15:41Z

Objectives

Ranisha: /* Context */

2019-11-05T14:15:25Z

Context

Ranisha: /* Description */

2019-11-05T14:14:50Z

Description

Ranisha at 14:05, 5 November 2019

2019-11-05T14:05:55Z

Ranisha: /* Description */

2019-11-05T14:05:13Z

Description

Johanna von Behaim at 13:29, 16 July 2018

2018-07-16T13:29:30Z

Johanna von Behaim at 13:17, 16 July 2018

2018-07-16T13:17:57Z

Johanna von Behaim at 14:53, 4 July 2018

2018-07-04T14:53:00Z

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 = Legal Basis =
-National Energy and Petroleum Policy (2015), provides the basis for the development of a comprehensive electrification strategy towards universal access by 2020.&nbsp; This provides dedicated targets for rural electrification and off-grid generation. For mini-grids, generation, distribution and supply licences are required from the Energy Regulatory Commission (ERC) as well as clearance from the National Environmental Management Authority (NEMA).&nbsp; For stand-alone solar systems, a licence is required for any person who “carries out any solar PV system manufacture, import, vending or installation work” according to the Energy (Solar PV) Regulation, 2012.
+The Energy Sector Organisation Law signed in 2000 allows private sector operators to supply electricity and mini-grid concessions to be established.
 = Institutions, Roles and Responsibilities<br/> =

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	= Objectives =		= Objectives =
		+	The goal is to implement mini-grids when they are the least-cost solution for energy access to remote areas. This requires integration with stand alone systems. There is no apparent target agreed for the number of mini-grid connections to be achieved.

−	Although overall electricity access increased from 23% in 2009 to 50% in 2015, the coverage is still limited to the coastal, central and some eastern and western parts of the country, with remote regions (such as northern Kenya) having access of only about 5%. The mandate of REA to power the Vision 2030 is to reach ‘universal connectivity by 2030’.  REA has a target of 23% of the population to be served by mini-grids, both publicly and privately owned. There are no such formal targets for stand-alone systems, though the government estimates that the cost of connecting a rural household to the national grid is between $800 and $1000 whereas a stand-alone solar system (providing enough power for an off-grid household) costs an average of between $150 and $300 – this acknowledgement is likely to see increased support for such systems as part of Vision 2030.

	= Legal Basis =		= Legal Basis =

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 = Context =
-The installed capacity&nbsp; of the interconnected system as at March 2016 was 2,341 MW which included 632 MW of geothermal energy and 821 MW of hydro power.&nbsp; The off-grid system installed capacity in 2015 was 28 MW and consisted of diesel, solar and wind power plants with supporting mini-grids.&nbsp; Following the full operationalization of the new 280MW geothermal plant in Olkaria, the&nbsp; national electricity consumption by mode will be 47% geothermal, 39% hydro, 13% thermal and 1% wind.&nbsp; Kenya’s demand is expected to rise to 15,000 MW by 2030.&nbsp; The Government's "Vision 2030" recognizes energy as a key priority, which requires an alignment of the energy sector policy and legislation. The target for rural electrification is “full access” for the rural population by connecting those public facilities (trading centres, state schools, health centres) that are not yet electrified (about 4,000 from the total of 25,000).&nbsp; However, this target of full access does not mean that all households will be connected.&nbsp; The tariff system is uniform (cross-subsidy) irrespective of grid or off-grid and is based on energy consumption and fuel used for generation (the average generation cost in 2010 was $0.29/kWh).&nbsp; In order to offset fuel consumption, renewable energy is being introduced into the off-grid systems. There is a huge potential for replacing diesel with solar power in micro-grids.&nbsp;
+As of 2014, Energie du Mali SA (EDM) had an estimated total installed capacity of around 400 MW, including both grid interconnected and isolated systems with about 60% hydropower and most of the remainder using imported fuel sources.    Approximately a quarter of the population is provided with electricity (59% in urban areas, 14% in rural areas).  This reported figure for rural electrification has risen from 2% a decade ago, but the quantity, quality, reliability and affordability of this rural access are often questionable. There is estimated potential for 1150MW of hydropower, of which 250 MW is presently developed (and partly shared with Senegal and Mauritania); this concerns primarily the hydroelectric plants of Sélingué (46 MW) and Manantali (200 MW). In addition, various other sites provide options for mini- or micro-hydro plants.  In 2015, the Norwegian project developer Scatec Solar, signed an agreement with EDM and MEE to build a 33MW solar plant, the first utility scale solar plant in West Africa.
 = Objectives =

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	= Description<br/> =		= Description<br/> =

−	~~The aim is~~ to ~~increase access to electricity (equally in all 47 counties) and promote renewable energy development. An integrated approach is being employed, involving~~ the ~~expansion of national grid in rural areas, development~~ of mini-grids and ~~installation of stand-alone systems~~ (~~primarily solar PV~~) ~~- all with an equal (cross-subsidised) tariff. USAID estimates that about 10%~~ of ~~new connections by 2025 will be off~~-grid. ~~Providing~~ for ~~basic needs in remote communities has also involved widespread dissemination of solar lanterns~~.~~  Promotion of a~~ private ~~sector-driven approach~~ to ~~rural electrification has been a focus by encouraging private investments in off~~-~~grid systems such as solar home systems, solar lanterns~~ and mini-grids~~. For example~~, at ~~Kissi, private operators are leading~~ the ~~design, build and management~~ of ~~4 advanced 100% solar micro~~-~~grids in villages with a total solar generation capacity of 80 kW~~; ~~together with a pre~~-~~payment platform~~. The Rural ~~Energy Authority (REA) has overall responsibility~~ for ~~increasing energy access in~~ rural ~~areas through all appropriate means~~, ~~whether via grid expansion or through off-grid applications; REA is currently involved~~ with ~~constructing mini~~-~~grids in 11 sites~~.	+	A programme to support the private sector delivery of mini-grids was implemented, managed by the national energy agency, AMADER. AMADER provided technical assistance and financial support (investment subsidies) and ensured the successful completion of the procurement process for mini-grid concessions. The tariffs negotiated between the operators and AMADER were different for each concession. Although there is no uniform tariff, the pressure to keep electricity prices low is significant and substantial subsidies were granted to private operators to overcome the gap between the cost-reflective tariff and the (lower) approved tariff. (For mini-grids operated by EDM, tariffs were kept at the same level as those of grid-connected customers, around $0.20/kWh; tariffs for the mini-grids operated by private operators were often much higher at around $0.50/kWh). The private investments were subsidized through the Rural Electrification Fund that is managed by AMADER. Investment subsidies from the REF are designed to yield affordable tariffs for rural customers but still provide an acceptable financial return for the investors. These subsidies were limited to 75% of capital costs, with the local private operators providing the remainder. In this public private partnership, the electricity tariffs were set to recover the private capital cost.
		+	The operation and maintenance costs were passed to end-users.

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 [[File:Back to NAE Overview Page.png|center|800px|NAE Overview Page|alt=NAE Overview Page|link=National Approaches to Electrification – Review of Options]]
 {{NAE Case Study Table Mali}}
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 {{NAE Acknowledgements}}
 [[Category:NAE]]

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 = Description<br/> =
-The aim is to increase access to electricity (equally in all 47 counties) and promote renewable energy development. An integrated approach is being employed, involving the expansion of national grid in rural areas, development of mini-grids and installation of stand-alone systems (primarily solar PV) - all with an equal (cross-subsidised) tariff. USAID estimates that about 10% of new connections by 2025 will be off-grid. Providing for basic needs in remote communities has also involved widespread dissemination of solar lanterns.&nbsp; Promotion of a private sector-driven approach to rural electrification has been a focus by encouraging private investments in off-grid systems such as solar home systems, solar lanterns and mini-grids. For example, at Kissi, private operators are leading the design, build and management of 4 advanced 100% solar micro-grids in villages with a total solar generation capacity of 80 kW; together with a pre-payment platform. The Rural Energy Authority (REA) has overall responsibility for increasing energy access in rural areas through all appropriate means, whether via grid expansion&nbsp;<span style="font-size: 0.85em;">or through off-grid applications; REA is currently involved with constructing mini-grids in 11 sites.</span>
+The aim is to increase access to electricity (equally in all 47 counties) and promote renewable energy development. An integrated approach is being employed, involving the expansion of national grid in rural areas, development of mini-grids and installation of stand-alone systems (primarily solar PV) - all with an equal (cross-subsidised) tariff. USAID estimates that about 10% of new connections by 2025 will be off-grid. Providing for basic needs in remote communities has also involved widespread dissemination of solar lanterns.&nbsp; Promotion of a private sector-driven approach to rural electrification has been a focus by encouraging private investments in off-grid systems such as solar home systems, solar lanterns and mini-grids. For example, at Kissi, private operators are leading the design, build and management of 4 advanced 100% solar micro-grids in villages with a total solar generation capacity of 80 kW; together with a pre-payment platform. The Rural Energy Authority (REA) has overall responsibility for increasing energy access in rural areas through all appropriate means, whether via grid expansion or through off-grid applications; REA is currently involved with constructing mini-grids in 11 sites.
 = Context =

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 A key to the success of this national programme in increasing use of off-grid energy systems has been the integrated approach to market development.&nbsp; This has combined policy frameworks with financial support mechanisms and customer education, which has led to growing market demand for off-grid products.&nbsp; It is important to note that direct subsidies from government are not seen as an effective route to a sustainable market.&nbsp; Despite this lack of direct financial support from the public sector, the growth of off-grid electrification (primarily through solar applications) has been substantial enough to represent a nascent commercial market.&nbsp; This has been stimulated by a range of supportive measures, with access to mobile banking services and customer awareness initiatives having the greatest impact.&nbsp; This facilitative approach has had positive results to date and certainly appears to represent a very cost-effective means to extend national electrification.
 = References =
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 {{NAE Acknowledgements}}
 [[Category:Mali]]

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 [[File:Back to NAE Overview Page.png|center|800px|NAE Overview Page|alt=NAE Overview Page|link=National Approaches to Electrification – Review of Options]]
 <p style="text-align: center;"><span style="color:#003399;">'''<u>Category Dashboard:</u>'''{{NAE Case Study Table Mali}}</span></p>
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 *World Resources Institute (Year Unknown), Implementation Strategies for Renewable Energy Services in Low-Income, Rural Areas. Policy Brief Issue 1.<br/>
 *[https://www.wri.org/sites/default/files/pdf/implementation_strategies_renewable_energy_services_low_income_rural_areas.pdf https://www.wri.org/sites/default/files/pdf/implementation_strategies_renewable_energy_services_low_income_rural _areas.pdf]
 <br/>
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 {{NAE Acknowledgements}}
 [[Category:NAE]]