Difference between revisions of "Comply with Policies and Regulations"

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==Introduction==  
 
==Introduction==  
Supporting services can be defined as any additional support needed to address weaknesses or gaps in the delivery model, or socio-cultural factors that need to be considered for the service to work (in a given context). This section focuses on the employees and the communities. It will address potential challenges and opportunities of community engagement at the project side, give an overview of further training programs for your personnel, and give a short insight into community-based models.
 
  
==Definitions==
+
==Fundamental remarks==
'''<u>Lack of interest and participation</u>'''
+
'''<u>Mini grids</u>'''
  
Community members may consider local or state government bodies as responsible for the provision of energy services or a culture of active participation has never been established. Some might even see participating in the project as a waste of time and resources. Language barriers, appropriation by the elite and local conflicts can also be causes for non-participation<ref name=":0">USAID (no date) How can developers engage communities? Available at: <nowiki>https://www.usaid.gov/energy/mini-grids/community/engagement</nowiki>.</ref>.
+
Over the last few years, mini-grids have played a key role in implementing Nigeria’s energy access and sustainable energy goals. They are now widely acknowledged as an integral component of the country’s energy ecosystem, delivering sustainable and reliable electricity access to nearly 27 thousand households living in areas that, until now, were out of reach of or unreliably served by the main grid infrastructure<ref>REAN (2022) Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria. Multi-stakeholder position paper. Available at: <nowiki>https://rean.org.ng/wp-content/uploads/2022/12/221220-NG-mini-grid-position-paper-1.pdf</nowiki> </ref>.  
  
'''<u>Gender inequality in participation</u>'''
+
In 2016, two significant developments took place in the Nigerian energy sector. First, the Rural Electrification Agency (REA) released the [https://rea.gov.ng/download/rural-electrification-strategy-implementation-plan-resip/ Rural Electrification Strategy and Implementation Plan (RESIP)], which acknowledged mini-grids’ role in closing the energy access gap and improving supply. In the same year, the Nigerian Electricity Regulatory Commission (NERC) approved comprehensive mini-grid regulation, [https://rea.gov.ng/wp-content/uploads/2018/07/NERC-Mini-Grid-Regulation.pdf NERC Regulation for Mini-grids 2016], covering a broad set of issues, from mini-grid licensing to quality standards and tariff design.
  
The opportunities women and men have, varies from region to region. While in some areas women and men are equal, in other areas women have no decision-making rights. This is not only disadvantageous in terms of equality but also regarding the development of solutions. The input of women can help to strengthen the technical design of a project by providing other insights<ref name=":0" />.
+
 
 +
The Energypedia article [[Policy and Regulatory Framework for Energy in Nigeria]] discusses the regulatory landscape in more detail.  
  
 
==Guiding Principles==
 
==Guiding Principles==
 +
Nigerian developers working on decentralized renewable electricity solutions for off-grid areas should consider several key aspects of regulations and policies to ensure compliance and the successful implementation of their projects. This section will list some guiding principles.
 +
 +
<u>Licensing and Regulatory Compliance:</u>
 +
 +
Developers should make sure to obtain the necessary licenses and permits from regulatory authorities, such as the Nigerian Electricity Regulatory Commission (NERC) and state-level agencies, to operate legally in the energy sector. Their project has to comply with the  [https://rea.gov.ng/wp-content/uploads/2018/07/NERC-Mini-Grid-Regulation.pdf NERC Regulation for Mini-grids 2016] and any other relevant regulations that govern mini-grid and off-grid operations.
 +
 +
<u>Tariffs and Pricing:</u>
 +
 +
It is advisable to develop a clear pricing strategy that adheres to regulatory guidelines. Mini-grid operators are typically required to set tariffs in a transparent and non-discriminatory manner. One should ensure that the pricing model is competitive and affordable for the target communities while still allowing for sustainable operation and maintenance of the system.
 +
 +
<u>Quality and Standards:</u>
 +
 +
Maintaining high-quality standards for renewable energy systems is important to ensure reliability and safety. Developers should familiarize themselves with relevant quality and safety standards, and ensure that their systems meet or exceed these standards.
 +
 +
<u>Community Engagement and Consent:</u>
 +
 +
Engaging with the local communities where the projects are located and obtaining their consent and support is key for a successful intervention. For example, one can develop community-based ownership and management models to ensure that the benefits of the project are shared with the community. (refer to user needs section)
 +
 +
<u>Data Reporting and Compliance Monitoring:</u>
  
==== Provide training for your staff ====
+
Robust data reporting and monitoring systems can help to comply with regulatory reporting requirements. Developers should be prepared for inspections and audits by regulatory authorities.
 +
 
 +
<u>Flexibility and Adaptability:</u>
 +
 
 +
Keep up to date on policy changes and adapt your business model accordingly to align with evolving regulations and incentives.
 +
 
 +
====Provide training for your staff ====
 
A cornerstone for the successful establishment and maintenance of an off-grid solar (OGS) project is its personnel. During the construction of the plant, care should be taken to train them beforehand. Before entering a solar plant, the employee needs a hazard briefing including health and safety regulations. The operation and maintenance (O&M) of the facility should be carried out by trained staff who meet the relevant qualifications to work safe, accountable and responsible. Especially in rural, emerging markets this can be challenging as qualified personnel is not always available. Therefore developers should consider offering their employee standard training which is provided by public training institutes and international organisations as well as further education opportunities for instance in the form of certifications/ diplomas. A selection of training institutions in the OGS sector can be found in Table 1. The industry is changing fast, and so is the technology. Therefore a developer should create a continuous internal and external training scheme, including opportunities for qualification and development<ref name=":1">Solar Power Europe (2021) Operation and Maintenance Best Practice Guidelines / Africa edition. Available at: <nowiki>https://api.solarpowereurope.org/uploads/Africa_edition_O_and_M_Best_Practice_Guidelines_fdea430b58.pdf</nowiki>.</ref>.
 
A cornerstone for the successful establishment and maintenance of an off-grid solar (OGS) project is its personnel. During the construction of the plant, care should be taken to train them beforehand. Before entering a solar plant, the employee needs a hazard briefing including health and safety regulations. The operation and maintenance (O&M) of the facility should be carried out by trained staff who meet the relevant qualifications to work safe, accountable and responsible. Especially in rural, emerging markets this can be challenging as qualified personnel is not always available. Therefore developers should consider offering their employee standard training which is provided by public training institutes and international organisations as well as further education opportunities for instance in the form of certifications/ diplomas. A selection of training institutions in the OGS sector can be found in Table 1. The industry is changing fast, and so is the technology. Therefore a developer should create a continuous internal and external training scheme, including opportunities for qualification and development<ref name=":1">Solar Power Europe (2021) Operation and Maintenance Best Practice Guidelines / Africa edition. Available at: <nowiki>https://api.solarpowereurope.org/uploads/Africa_edition_O_and_M_Best_Practice_Guidelines_fdea430b58.pdf</nowiki>.</ref>.
 
{| class="wikitable"
 
{| class="wikitable"
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|[https://www.renac.de/projects/current-projects/nigerian-finance-training-programme Renewables Academy (RENAC)]
 
|[https://www.renac.de/projects/current-projects/nigerian-finance-training-programme Renewables Academy (RENAC)]
 
|Worldwide, online
 
|Worldwide, online
|RENAC is a provider for training and capacity building on renewable energy and energy efficiency based in Germany. Additionally to solar energy, they also offer courses on other renewable energy sources as well as on business development. The offer includes a variety of ready-made trainings for individuals, tailor-made trainings for industry and organisations and academic programmes. The formats take place online or on-site at the RENAC training center in Berlin. In addition to the regular training programmes, RENAC also offers projects in partnership with other organisations in developing countries. These are usually free through financial support by third parties.  
+
|RENAC is a provider for training and capacity building on renewable energy and energy efficiency based in Germany. Additionally to solar energy, they also offer courses on other renewable energy sources as well as on business development. The offer includes a variety of ready-made trainings for individuals, tailor-made trainings for industry and organisations and academic programmes. The formats take place online or on-site at the RENAC training center in Berlin. In addition to the regular training programmes, RENAC also offers projects in partnership with other organisations in developing countries. These are usually free through financial support by third parties.
 
|-
 
|-
 
|[https://unitar.org/courses/energy-delivery-models-edm-training-7792 Energy Delivery Modes (EDM) Training by UNITAR]
 
|[https://unitar.org/courses/energy-delivery-models-edm-training-7792 Energy Delivery Modes (EDM) Training by UNITAR]
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|The United Nations Institute for Training and Research (UNITAR) offers a wide range of courses and training activities for a diverse audience. The free EDM training aims to build staff capacity to support the integration of energy access and sustainable delivery models of modern energy services into humanitarian and development programming. It is based on the EDM Toolkit developed by IIED and CAFOD. The course consists of three modules:
 
|The United Nations Institute for Training and Research (UNITAR) offers a wide range of courses and training activities for a diverse audience. The free EDM training aims to build staff capacity to support the integration of energy access and sustainable delivery models of modern energy services into humanitarian and development programming. It is based on the EDM Toolkit developed by IIED and CAFOD. The course consists of three modules:
  
* Module 1: Introduction to Energy Access in Displacement Contexts
+
*Module 1: Introduction to Energy Access in Displacement Contexts
* Module 2: Hands-on Design of Energy Delivery Models
+
*Module 2: Hands-on Design of Energy Delivery Models
* Module 3: Developing & Managing Your Energy Project
+
*Module 3: Developing & Managing Your Energy Project
 
|-
 
|-
 
|[https://core-initiative.org/resources/ Cornerstone of rural electrification (CORE)]
 
|[https://core-initiative.org/resources/ Cornerstone of rural electrification (CORE)]
Line 43: Line 68:
 
|Nigeria, UK
 
|Nigeria, UK
 
|Asteven Energy is the first Innovation Enterprise Institution(IEI) approved by the Federal Ministry of Education (FME) and accredited by Nigeria’s National Board for Technical Education (NBTE) to offer a National Innovation Diploma (NID) in Solar Energy Technology. It is accredited by the ECOWAS Center for Renewable Energy and Energy Efficiency (ECREEE) as a recognized institution for training and certification in Solar Photovoltaic (Off Grid) Installation in Nigeria.<br />Offers:
 
|Asteven Energy is the first Innovation Enterprise Institution(IEI) approved by the Federal Ministry of Education (FME) and accredited by Nigeria’s National Board for Technical Education (NBTE) to offer a National Innovation Diploma (NID) in Solar Energy Technology. It is accredited by the ECOWAS Center for Renewable Energy and Energy Efficiency (ECREEE) as a recognized institution for training and certification in Solar Photovoltaic (Off Grid) Installation in Nigeria.<br />Offers:
* Solar Photovoltaik installation training (SPVI)  For beginners and for those with limited knowledge
+
*Solar Photovoltaik installation training (SPVI)  For beginners and for those with limited knowledge
* National Innovation diploma in solar energy technology
+
*National Innovation diploma in solar energy technology
 
|-
 
|-
 
|[https://ashdamsolar.com/academy/ Ashdam Solar Academy]
 
|[https://ashdamsolar.com/academy/ Ashdam Solar Academy]
Line 54: Line 79:
 
|The academy provides a range of online and onsite (tailored) training services for the renewable energy industry. Excerpt from the course list:
 
|The academy provides a range of online and onsite (tailored) training services for the renewable energy industry. Excerpt from the course list:
  
* Solar Photovoltaic Installation and supervision (SPVIS)
+
*Solar Photovoltaic Installation and supervision (SPVIS)
* Solar street lightning  
+
*Solar street lightning
* Technical vocational education & training TVET)
+
*Technical vocational education & training TVET)
* Energy management course
+
*Energy management course
* Solar system sizing & maintenance
+
*Solar system sizing & maintenance
* Finance
+
*Finance
 
|-
 
|-
 
|[https://ecowatt.com.ng/ Ecowatt Nigeria]
 
|[https://ecowatt.com.ng/ Ecowatt Nigeria]
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|Ecowatt is a solution provider for sustainable development with focus on affordable and clean energy development. The company offers hands-on training courses and workshops which can vary from standard to tailor-made courses. They also organize trainings and study tours to Germany/Europe.
 
|Ecowatt is a solution provider for sustainable development with focus on affordable and clean energy development. The company offers hands-on training courses and workshops which can vary from standard to tailor-made courses. They also organize trainings and study tours to Germany/Europe.
  
* Due Diligence for Solar
+
*Due Diligence for Solar
* Industrial and Commercial
+
*Industrial and Commercial
* Energy Audit Training
+
*Energy Audit Training
* ISO 50001 Energy Management System EnMS
+
*ISO 50001 Energy Management System EnMS
 
|-
 
|-
 
|[https://edu.grecopower.com.ng/ GreCo Academy]
 
|[https://edu.grecopower.com.ng/ GreCo Academy]
Line 75: Line 100:
  
 
* Basics of how to start a solar business
 
* Basics of how to start a solar business
* Business and Finance
+
*Business and Finance
* Energy efficiency in buildings
+
*Energy efficiency in buildings
* Customer service
+
*Customer service
* Policies and regulations
+
*Policies and regulations
* Homer software
+
*Homer software
* Data collection
+
*Data collection
 
|-
 
|-
 
|[http://www.naptin.gov.ng/ National Power Training Institute of Nigeria (NAPTIN)]
 
|[http://www.naptin.gov.ng/ National Power Training Institute of Nigeria (NAPTIN)]
Line 87: Line 112:
 
Technical courses:
 
Technical courses:
  
* NGSDP (Graduate skills development programme)
+
*NGSDP (Graduate skills development programme)
* NTSAP (Technical skills acquisition programme)
+
*NTSAP (Technical skills acquisition programme)
* PGD (Post graduate diploma in Power system O&M)
+
*PGD (Post graduate diploma in Power system O&M)
* On-the-job training
+
*On-the-job training
  
 
Non technical courses:
 
Non technical courses:
  
 
* Leadership & Management
 
* Leadership & Management
* Marketing & Customer Service
+
*Marketing & Customer Service
* Electricity trading, regulation & pricing
+
*Electricity trading, regulation & pricing
* Other, non-technical & soft-skills
+
*Other, non-technical & soft-skills
 
|-
 
|-
 
|[https://retti.com.ng/ Renewable Energy Technology Training Institute (RETTI)]
 
|[https://retti.com.ng/ Renewable Energy Technology Training Institute (RETTI)]
Line 103: Line 128:
 
|The training institute provides tailored education within and across the value chain of renewable energy and energy efficiency.
 
|The training institute provides tailored education within and across the value chain of renewable energy and energy efficiency.
  
* Design and Installation
+
*Design and Installation
 
* Safety course
 
* Safety course
* Maintenance
+
*Maintenance
* Business and entrepreneurship
+
*Business and entrepreneurship
* Starting a profitable solar business
+
*Starting a profitable solar business
* Import
+
*Import
 
|-
 
|-
|[https://www.rubitecsolar.com/academy/ Rubitec Academy]  
+
|[https://www.rubitecsolar.com/academy/ Rubitec Academy]
|Nigeria
+
| Nigeria
 
|Rubitec Limited is a leading Nigerian renewable energy company. Rubitec Academy is an initiative to partner with academic and training institutions in Nigeria and abroad in developing future leaders in Renewable Energy and Environmental Science through a 1-year workplace training programme. Requirement is experience in the field.  
 
|Rubitec Limited is a leading Nigerian renewable energy company. Rubitec Academy is an initiative to partner with academic and training institutions in Nigeria and abroad in developing future leaders in Renewable Energy and Environmental Science through a 1-year workplace training programme. Requirement is experience in the field.  
  
* SPVI
+
*SPVI
* SPVIS
+
*SPVIS
* Minigrid designer
+
*Minigrid designer
 
|}
 
|}
  
==== Include community engagement ====
+
==Existing Tools ==
Community members are still largely excluded from substantive aspects of decision making and implementation processes that are essential for their long-term viability and sustainability. According to Uduka et al. (2022), the lack of community involvement is a “missed opportunity”. Integrating communities in the development process of mini-grids can foster a sense of local ownership and can improve the functionality of the project<ref>Uduka, U. and Sesan, T. (2022) ‘Mini-grid development and management in Nigeria: There is a need for deeper community engagement’, SIGMA project. Available at: <nowiki>https://www.sigma-gcrf.net/blog/mini-grid-development-and-management-in-nigeria-there-is-a-need-for-deeper-community-engagement</nowiki>.</ref>.
 
 
 
Community involvement should start right in the beginning. A key part of the planning progress of a mini-grid is the community needs assessment where the [[Estimate_and_Stimulate_Demand|demand is estimated]]. An early exchange with the local community can help to understand the energy needs and willingness to pay for energy services. Furthermore, the communities can help to understand the local resource rights and prevent future conflicts. Developers can also consider the involvement of the community in the ownership model. There are various options, ranging from sole ownership to a partnership with the company <ref name=":3">USAID. What ownership models are used for mini-grids? https://www.usaid.gov/energy/mini-grids/ownership/models</ref>. Business models that are co-created with the users may enhance competitive advantage while integrating the voice of the community<ref>Mukoro, V., Sharmina, M. and Gallego-Schmid, A. (2022) ‘A review of business models for access to affordable and clean energy in Africa: Do they deliver social, economic, and environmental value?’, Energy Research & Social Science, 88. Available at: <nowiki>https://doi.org/10.1016/j.erss.2022.102530</nowiki>.</ref>.
 
 
 
To ensure the commitment of the community, a strong community representation in the operation and maintenance of a mini-grid is inevitable. Accordingly, comprehensive training is advantageous for a smooth operation. An extensive engagement can enhance the acceptance of the project<ref name=":2">SIGMA (2022) ‘Community participation in mini-grids development: Key points to focus on’. Available at: <nowiki>https://www.sigma-gcrf.net/blog/community-participation-in-mini-grids-development-key-points-to-focus-on</nowiki>.</ref>.
 
 
 
==== Consider aspects of gender equality ====
 
To improve diversity and inclusion, developers should provide training for all genders<ref name=":1" />. A selection of training academies already offers courses targeting women specifically. There is a greater potential of gender-sensitive approaches to reduce household poverty and increase the overall wellbeing of the community <ref>Soler, A., Jäger, J. and Lecoque, D. (2020) Women Entrepreneurs as Key Drivers in the Decentralised Renewable Energy Sector. Available at: <nowiki>https://www.ruralelec.org/sites/default/files/Gender%20%26%20Energy%20Publication.pdf</nowiki>.</ref>. Women benefit from an increase in electricity supply by spending less time on household production, providing them more time for e.g. economic activities. This in turn leads to an increase in employment and factor incomes which benefits the whole community<ref>Cicowiez, M. et al. (2022) ‘Gender-differentiated impacts of a Rural Electrification Policy in Nigeria’, Energy Policy, 162, p. 112774. Available at: <nowiki>https://doi.org/10.1016/j.enpol.2021.112774</nowiki>.</ref>.
 
 
 
To ensure a comprehensive and diverse perspective, women and other disadvantaged members should be included in decision processes. Developers should also consider women-led groups for better representation<ref name=":2" />. Public meetings and other outreach efforts should take place at times when women can attend and should be adapted to women needs<ref name=":0" />.
 
 
 
==== Community-based model ====
 
Under community-based models, local communities own, manage, operate and maintain mini-grids. These communities usually receive external help with financing, design and installation. Often, the developer or another outside organization provides technical capacity building, and a public entity or donor provides grants or other financial assistance. Once the mini-grid is installed, the community assumes responsibility for tariff collection and operations and maintenance. Community electricity cooperatives and other local organizations often play this role <ref name=":3" />.  There is evidence of failed community-based models due to a gap in local capacity and a rushed ownership transfer<ref>Katre, A. and Tozzi, A. (2019) ‘Using hugs, carrots and sticks: How agents exercise power in the transition to community-owned energy systems in remote India’, Energy Research & Social Science, 54, pp. 129–139. Available at: <nowiki>https://doi.org/10.1016/j.erss.2019.04.008</nowiki>.</ref>.
 
  
==Existing Tools==
+
*
 
 
*  
 
 
{| class="wikitable"
 
{| class="wikitable"
 
|+
 
|+
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!Open source
 
!Open source
 
!Description
 
!Description
 +
|-
 +
|[https://www.all-on.com/media/publications/simplified-guides-to-nigerias-energy-access-policies-and-regulations/_jcr_content/par/textimage.stream/1595008807872/c0fb235222b78a401a7d20fd05ed733af78e6b7d/mini-grid-regulations.pdf Regulations for Mini-Grids 2016, Simplified Summary]
 +
|Yes
 +
| Yes
 +
|This Guide provides a simplified summary of the regulation primarily for stakeholders in the off grid renewable energy sector. It further provides some context for the regulation – including the definition and types of mini-grids, process and requirements for permit and licenses, project development processes, tariffs and other charges, relationship between stakeholders, compliance and technical requirements, compensation, dispute resolution and current implementation status.
 
|-
 
|-
 
|[https://rean.org.ng/wp-content/uploads/2022/12/221220-NG-mini-grid-position-paper-1.pdf Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria]
 
|[https://rean.org.ng/wp-content/uploads/2022/12/221220-NG-mini-grid-position-paper-1.pdf Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria]
|Yes
+
| Yes
|Yes
+
| Yes
 
|This position paper aims to discuss further the identified gaps/lack of clarity – regulatory and policy – which are slowing down the scaling of the mini-grid sector in Nigeria and to propose ways for further improvement. It has been developed jointly by key stakeholders – developers, financiers, and industry associations – driving Nigeria's mini-grid sector's growth.
 
|This position paper aims to discuss further the identified gaps/lack of clarity – regulatory and policy – which are slowing down the scaling of the mini-grid sector in Nigeria and to propose ways for further improvement. It has been developed jointly by key stakeholders – developers, financiers, and industry associations – driving Nigeria's mini-grid sector's growth.
 
|-
 
|-
Line 153: Line 168:
 
|
 
|
 
|
 
|
|-
 
|[https://acumen.org/wp-content/uploads/2017/09/Women_And_Social_Enterprises_Report_Acumen_ICRW_2015.pdf '''Diagnostic tool for effective gender integration (ICRW and Acumen)''']
 
|No
 
|Yes
 
|Based on the study of seven case studies from different industries and geographies, the report “Women and social enterprises: how gender integration can boost entrepreneurial solutions to poverty” (source) contains a new framework that outlines the ways in which gender can influence key business decisions. This framework can be applied as a diagnostic tool to uncover opportunities to more effectively integrate gender in ways that will support the business and social goals of these companies.
 
|-
 
|[https://micropowermanager.com/ '''Inensus Open-source MicroPowerManager''']
 
|No
 
|Yes
 
|The software was developed by INENSUS and facilitates the entire data management for decentralized electric utilities (DEUs) within a single platform. Operators and maintainers no longer need to operate their own server, but can transfer and access their data on the platform without further IT knowledge.
 
 
|-
 
|-
 
|[https://api.solarpowereurope.org/uploads/Africa_edition_O_and_M_Best_Practice_Guidelines_fdea430b58.pdf '''Solar Power Europe - Operation & Maintenance: Best practice Guidelines Africa Edition''']
 
|[https://api.solarpowereurope.org/uploads/Africa_edition_O_and_M_Best_Practice_Guidelines_fdea430b58.pdf '''Solar Power Europe - Operation & Maintenance: Best practice Guidelines Africa Edition''']
Line 168: Line 173:
 
|Yes
 
|Yes
 
|The document assists the reader in developing a general understanding of the topic. The guideline addresses O&M contractors as well as installers, owners, investors, financiers, monitoring tool providers, technical consultants and interested stakeholders in Sub-Saharan Africa.
 
|The document assists the reader in developing a general understanding of the topic. The guideline addresses O&M contractors as well as installers, owners, investors, financiers, monitoring tool providers, technical consultants and interested stakeholders in Sub-Saharan Africa.
|-
 
|[https://www.usaid.gov/energy/mini-grids/community '''USAID - Community Involvement in Mini-Grids (Mini-Grids Support Toolkit)''']
 
|No
 
|Yes
 
|The United States Agency for International Development (USAID) developed a toolkit for mini-grid developers including a section for community involvement. The section consists of various modules on how to engage local communities, how to assess energy needs and community support, a description of conflict types that may arise and how to measure the social benefit and impacts of a project.
 
|-
 
|[https://www.cometapp.net/ '''Community Energy Toolkit (COMET)''']
 
|No
 
|No
 
|COMET is a role-playing software tool built around a representation of a mini-grid system, intended to be used as an educational and collaborative planning tool in designing a community-sized mini-grid system. The tool is designed to be used within a process that explores mini-grid planning and operational decisions. After the simulation, one can generate reports and analyse data on consumer demand and payments. Communities can develop workable solutions to challenges of managing a community-sized mini-grid, such as system sizing, tariff-setting, and demand-side management. By playing as a group, the players can also improve their understanding of energy technology, practice negotiation and consensus-building skills.
 
 
|}
 
|}
  
==Bibliography==
+
==Bibliography ==
 
</div> <!-- End .Moz -->
 
</div> <!-- End .Moz -->
  

Revision as of 15:06, 26 September 2023



Introduction

Fundamental remarks

Mini grids

Over the last few years, mini-grids have played a key role in implementing Nigeria’s energy access and sustainable energy goals. They are now widely acknowledged as an integral component of the country’s energy ecosystem, delivering sustainable and reliable electricity access to nearly 27 thousand households living in areas that, until now, were out of reach of or unreliably served by the main grid infrastructure[1].

In 2016, two significant developments took place in the Nigerian energy sector. First, the Rural Electrification Agency (REA) released the Rural Electrification Strategy and Implementation Plan (RESIP), which acknowledged mini-grids’ role in closing the energy access gap and improving supply. In the same year, the Nigerian Electricity Regulatory Commission (NERC) approved comprehensive mini-grid regulation, NERC Regulation for Mini-grids 2016, covering a broad set of issues, from mini-grid licensing to quality standards and tariff design.


The Energypedia article Policy and Regulatory Framework for Energy in Nigeria discusses the regulatory landscape in more detail.

Guiding Principles

Nigerian developers working on decentralized renewable electricity solutions for off-grid areas should consider several key aspects of regulations and policies to ensure compliance and the successful implementation of their projects. This section will list some guiding principles.

Licensing and Regulatory Compliance:

Developers should make sure to obtain the necessary licenses and permits from regulatory authorities, such as the Nigerian Electricity Regulatory Commission (NERC) and state-level agencies, to operate legally in the energy sector. Their project has to comply with the NERC Regulation for Mini-grids 2016 and any other relevant regulations that govern mini-grid and off-grid operations.

Tariffs and Pricing:

It is advisable to develop a clear pricing strategy that adheres to regulatory guidelines. Mini-grid operators are typically required to set tariffs in a transparent and non-discriminatory manner. One should ensure that the pricing model is competitive and affordable for the target communities while still allowing for sustainable operation and maintenance of the system.

Quality and Standards:

Maintaining high-quality standards for renewable energy systems is important to ensure reliability and safety. Developers should familiarize themselves with relevant quality and safety standards, and ensure that their systems meet or exceed these standards.

Community Engagement and Consent:

Engaging with the local communities where the projects are located and obtaining their consent and support is key for a successful intervention. For example, one can develop community-based ownership and management models to ensure that the benefits of the project are shared with the community. (refer to user needs section)

Data Reporting and Compliance Monitoring:

Robust data reporting and monitoring systems can help to comply with regulatory reporting requirements. Developers should be prepared for inspections and audits by regulatory authorities.

Flexibility and Adaptability:

Keep up to date on policy changes and adapt your business model accordingly to align with evolving regulations and incentives.

Provide training for your staff

A cornerstone for the successful establishment and maintenance of an off-grid solar (OGS) project is its personnel. During the construction of the plant, care should be taken to train them beforehand. Before entering a solar plant, the employee needs a hazard briefing including health and safety regulations. The operation and maintenance (O&M) of the facility should be carried out by trained staff who meet the relevant qualifications to work safe, accountable and responsible. Especially in rural, emerging markets this can be challenging as qualified personnel is not always available. Therefore developers should consider offering their employee standard training which is provided by public training institutes and international organisations as well as further education opportunities for instance in the form of certifications/ diplomas. A selection of training institutions in the OGS sector can be found in Table 1. The industry is changing fast, and so is the technology. Therefore a developer should create a continuous internal and external training scheme, including opportunities for qualification and development[2].

Table 1: List of training institutions and materials (own extended illustration based on USAID, 2022[3])
Name Area of action Description
Renewables Academy (RENAC) Worldwide, online RENAC is a provider for training and capacity building on renewable energy and energy efficiency based in Germany. Additionally to solar energy, they also offer courses on other renewable energy sources as well as on business development. The offer includes a variety of ready-made trainings for individuals, tailor-made trainings for industry and organisations and academic programmes. The formats take place online or on-site at the RENAC training center in Berlin. In addition to the regular training programmes, RENAC also offers projects in partnership with other organisations in developing countries. These are usually free through financial support by third parties.
Energy Delivery Modes (EDM) Training by UNITAR Online The United Nations Institute for Training and Research (UNITAR) offers a wide range of courses and training activities for a diverse audience. The free EDM training aims to build staff capacity to support the integration of energy access and sustainable delivery models of modern energy services into humanitarian and development programming. It is based on the EDM Toolkit developed by IIED and CAFOD. The course consists of three modules:
  • Module 1: Introduction to Energy Access in Displacement Contexts
  • Module 2: Hands-on Design of Energy Delivery Models
  • Module 3: Developing & Managing Your Energy Project
Cornerstone of rural electrification (CORE) Online The CORE initiative was jointly launched by ARE, ICA, IRENA, SforAll, UNEO and UNIDO to address the immense capacity building and technical assistance needs to support the development of DRE systems. It offers technical assistance to Practitioners on aspects related to improving safety, efficiency and reliability of decentralised electrification projects; Communities (especially women) on productive use of electricity; and to Governments on enhancing the policy and regulatory framework in support of decentralised electrification.
Asteven Renewable Energy Academy Nigeria, UK Asteven Energy is the first Innovation Enterprise Institution(IEI) approved by the Federal Ministry of Education (FME) and accredited by Nigeria’s National Board for Technical Education (NBTE) to offer a National Innovation Diploma (NID) in Solar Energy Technology. It is accredited by the ECOWAS Center for Renewable Energy and Energy Efficiency (ECREEE) as a recognized institution for training and certification in Solar Photovoltaic (Off Grid) Installation in Nigeria.
Offers:
  • Solar Photovoltaik installation training (SPVI) For beginners and for those with limited knowledge
  • National Innovation diploma in solar energy technology
Ashdam Solar Academy Nigeria, online Ashdam Solar specialized in design, installation and O&M of off-grid solar systems in Nigeria. They offer a variety of online courses, including basic information of renewable energy generation over system configuration and installment to customer service. Furthermore they have several onsite and blended (online and onsite) courses. One example is the “Solar Queen Program” which explicitly addresses women.
Blue Camel Energy Academy Nigeria, online The academy provides a range of online and onsite (tailored) training services for the renewable energy industry. Excerpt from the course list:
  • Solar Photovoltaic Installation and supervision (SPVIS)
  • Solar street lightning
  • Technical vocational education & training TVET)
  • Energy management course
  • Solar system sizing & maintenance
  • Finance
Ecowatt Nigeria Nigeria Ecowatt is a solution provider for sustainable development with focus on affordable and clean energy development. The company offers hands-on training courses and workshops which can vary from standard to tailor-made courses. They also organize trainings and study tours to Germany/Europe.
  • Due Diligence for Solar
  • Industrial and Commercial
  • Energy Audit Training
  • ISO 50001 Energy Management System EnMS
GreCo Academy Online GreCo Academy provides quality training that covers the entire solar energy value chain from finance, marketing, management policy-making and solar engineering. They also offer a variety of free courses. Excerpt of course offer:
  • Basics of how to start a solar business
  • Business and Finance
  • Energy efficiency in buildings
  • Customer service
  • Policies and regulations
  • Homer software
  • Data collection
National Power Training Institute of Nigeria (NAPTIN) Nigeria NAPTIN is a parastatal training institute under the supervision of the Federal Ministry of Power. In this context it offers training and certification among others for generation companies (GenCos) & distribution companies (DisCos), the Transmission Company of Nigeria (TCN) and the Rural Electrification Agency (REA). Excerpt of course offer:

Technical courses:

  • NGSDP (Graduate skills development programme)
  • NTSAP (Technical skills acquisition programme)
  • PGD (Post graduate diploma in Power system O&M)
  • On-the-job training

Non technical courses:

  • Leadership & Management
  • Marketing & Customer Service
  • Electricity trading, regulation & pricing
  • Other, non-technical & soft-skills
Renewable Energy Technology Training Institute (RETTI) Online The training institute provides tailored education within and across the value chain of renewable energy and energy efficiency.
  • Design and Installation
  • Safety course
  • Maintenance
  • Business and entrepreneurship
  • Starting a profitable solar business
  • Import
Rubitec Academy Nigeria Rubitec Limited is a leading Nigerian renewable energy company. Rubitec Academy is an initiative to partner with academic and training institutions in Nigeria and abroad in developing future leaders in Renewable Energy and Environmental Science through a 1-year workplace training programme. Requirement is experience in the field.
  • SPVI
  • SPVIS
  • Minigrid designer

Existing Tools

Name Nigeria specific Open source Description
Regulations for Mini-Grids 2016, Simplified Summary Yes Yes This Guide provides a simplified summary of the regulation primarily for stakeholders in the off grid renewable energy sector. It further provides some context for the regulation – including the definition and types of mini-grids, process and requirements for permit and licenses, project development processes, tariffs and other charges, relationship between stakeholders, compliance and technical requirements, compensation, dispute resolution and current implementation status.
Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria Yes Yes This position paper aims to discuss further the identified gaps/lack of clarity – regulatory and policy – which are slowing down the scaling of the mini-grid sector in Nigeria and to propose ways for further improvement. It has been developed jointly by key stakeholders – developers, financiers, and industry associations – driving Nigeria's mini-grid sector's growth.
Solar Power Europe - Operation & Maintenance: Best practice Guidelines Africa Edition No Yes The document assists the reader in developing a general understanding of the topic. The guideline addresses O&M contractors as well as installers, owners, investors, financiers, monitoring tool providers, technical consultants and interested stakeholders in Sub-Saharan Africa.

Bibliography

  1. REAN (2022) Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria. Multi-stakeholder position paper. Available at: https://rean.org.ng/wp-content/uploads/2022/12/221220-NG-mini-grid-position-paper-1.pdf
  2. Solar Power Europe (2021) Operation and Maintenance Best Practice Guidelines / Africa edition. Available at: https://api.solarpowereurope.org/uploads/Africa_edition_O_and_M_Best_Practice_Guidelines_fdea430b58.pdf.
  3. USAID & Power Africa. (2022). PA NPSP Off-Grid Market Intelligence Report. https://pdf.usaid.gov/pdf_docs/PA00ZB5X.pdf