Component Three

Output 3.1.1: Completed DREI assessments of ongoing and planned RE-based electricity generation activities in the off-grid areas [Gen 2]

Activity 3.1.1.1: Assessment of RE-based electricity generation options for rural electrification projects in off-grid areas based on DREI methodology. This activity involves the review and recommendations on RE-based power generation projects and development of innovative strategies for electrification in off-grid areas suitable for the Solomon Islands situation and market configurations. Technology-related issues such as intermittent generation, availability, capacity, hybrid configuration possibility, power quality, reliability, maintainability, interconnection possibilities, demand management, technology transfer, market potential and ancillary services that should be resolved to support investment decisions by private providers, direct consumers or community and institution clients will be evaluated for each RE and EE technology option. This will be done using the UNDP’s De-risking Renewable Energy Investment (DREI) methodology to quantitatively analyze the barriers and risks for sustainable off-grid RE-based power generation options[1] in the Solomon Islands to determine the ones (from those options mentioned below) that will be demonstrated in the SPIRES Project. The experiences and lessons learned in the RE projects that were gathered in earlier RE projects as well as the ongoing baseline projects will be considered in the assessment process. The results of the assessments will be presented as case studies (including economic evaluation and social cost-benefit analysis), validated, reviewed by the TWG for presentation to the Project Board  for decision and be used to select and design the most appropriate RE-based technology to be demonstrated in specific applications that will meet the electrification demands in the rural areas.

Activity 3.1.1.2: Final selection of rural electrification projects for demonstration based on approved socio-economic criteria satisfying project objective. Based on the recommendations of the assessments done in Activity 3.1.1.1, the Project Board will approve firstly the socio-economic criteria that will be used to select the RE-based suitably-sized power generation options for rural homes, community or institutions to qualify for demonstration under the project. Several demo project concepts and designs that have been initially identified during the PPG project development process, will be finalized in this activity through the review and recommendation by the TWG and finally approved by the PB. The selection will consider more importantly the replicability, market potential and suitability to socio-cultural aspects of the selected technology to meet the project objectives. The technology applications demonstration will include technologies that have been proven in the SOI or any similar PIC in the region. The demos will focus on showing the application, financing and delivery mechanisms that will lead to innovative means of providing energy access to rural families instead of just technical piloting. The access to electricity through rural electrification will open possibilities for households, institution or communities in income generation aside from providing for basic human needs, education, community life and gender-related concerns.   

GEF support is required for the incremental technical assistance in the evaluation of RE-based electricity generation options and travel and meeting expenses in gathering information and conduct of consultations.

Output 3.1.2: Improved system for sourcing of high-quality equipment at best cost for low carbon technology system (RE and EE) equipment and components

Activity 3.1.2.1: Conduct of assessments to improve the sourcing of equipment and components of RE-based power generation systems, and EE technology applications. This activity involves the conduct of the following:

• Identification of available LC technology system equipment and components available in the country and in the Pacific region – This involves doing an inventory of the various RE and EE technology system equipment such as solar panels, inverters, batteries, and cabling of various sizes needed, taking note of international best prices for desired equipment and prices for sourcing equipment in the Pacific Region for the Solomon Islands
• Assessment of least cost sources of the identified high-quality LC technology system equipment and components – This also include determining the preferred sources of equipment for Solomon Islands via desk work and communication with potential suppliers. A list of priority suppliers with explanations of why they were chosen will be provided.
• Assessment of various options for solar PV power generation schemes that can be applied in the country. This will consider, among others, the containerized options and comparison of prices and quality achievable to the cost of non-containerized approaches. It includes the evaluation of benefits of containerized approaches and the possibility of mechanisms (and their associated costs) for getting containers onshore for outer islands that lack adequate port facilities. An assessment report will be prepared with listing of containerized PV power station suppliers and their prices.
• Outreach to potential suppliers to ensure that high quality best cost suppliers bid on requests for proposals for PV system equipment and components in the competitive bidding for the supply of such equipment/components for the demonstrations. This involves preparation of a report on feedback from consulted suppliers and recommended follow up to ensure they participate in bidding.

Activity 3.1.2.2: Conduct of assessments to improve the sourcing of solar home systems (SHS). This activity involves desk work that includes:

• Identification of available packaged SHS units available in the country and in the Pacific region – This involves doing an inventory of the best sourcing channels for quality SHSs at lowest price.
• Assessment of quality of identified available packaged SHS units – This involves formulation of recommended minimum specifications based on the inventory of sourcing channels that provide desired quality of equipment at best price. The endorsed list will be made publicly available. Mentoring/ coaching on sourcing will be provided, if requested, to top providers of retail packaged SHS units in the country, including the private sector suppliers and distributors of these products.
• Assessment of the SHS parts needed to be held in inventory in the major outer islands to facilitate timely repair in an economically sustainable fashion. This involves an evaluation of the needs presented by existing stock of SHSs on the outer islands, as well as by the new types of SHSs as determined in the previous assessment. The evaluation findings will be provided to MMERE and provincial governments for use for example in a SIG rural electrification program institutional plan for outer island spare parts inventory.

Activity 3.1.2.3: Identification of quality best price sourcing channels for RE technology application equipment for non-power applications in the off-grid areas (e.g., water desalination, water pumping for agriculture systems). This involves determination of required specifications and sources of RE technology application products on the international market; conduct of research on prices and quality to determine the best sources; direct liaison with suppliers; and encouraging preferred suppliers to bid or partner with bidders on relevant project demos.

Activity 3.1.2.4: Identification of energy efficient and reliable models of key EE technology application equipment for household use and productive uses and determination of high quality, cost effective sourcing channels for each. This activity involves the identification of the relevant equipment of interest, spare parts and materials that may need to be kept on hand to facilitate repair and maintenance; research and analysis of sources; provision of listings of priority sources with explanations of why they were prioritized; and dissemination of findings to potential outer island buyers. Examples of these include freezers, ice makers, cold houses, refrigerators, coconut processing equipment, and, possibly, fans and air conditioners, etc.

Activity 3.1.2.5: Evaluation of the typical average installed cost breakdown for RE and EE technology application systems in the country. This involves the assessment of the installed cost for RE-based energy systems (power and non-power applications), and EE technology application systems, for better understanding of what cost components must be optimized thereby enabling widespread implementation of more reasonable and affordable low carbon technology application projects in the off-grid areas of the Solomon Islands. The cost breakdown evaluation shall be in terms of: (A) Direct Cost (1. Purchase Equipment Cost; and, 2. Direct Materials & Labor Cost); and, (B) Indirect Cost (1. Equipment Purchase Related Cost; 2. Total Installation Indirect Cost (2.1. Total Construction & Engineering Cost; 2.2. Contractors Fee); and, 3. Contingency Cost).

 GEF support is required for the incremental technical assistance in the evaluation of current costs of RE-based electricity generation options, assessments of RE equipment sourcing and travel and meeting expenses in gathering information and conduct of consultations.

Output 3.1.3: Approved design, engineering, financial and implementation plans for the demonstrations on RE-based electricity generation and EE technology application in the electricity end-use sectors in selected off-grid areas [Gen 2]

 Activity 3.1.3.1: Finalization of the design, engineering, financial and implementation plans for the selected demonstrations on RE-based electricity generation and EE technology application. This activity involves the validation of the conceptual designs of the selected demos to come up with the final technical designs and implementation plans. The implementation strategies will also be confirmed with the selected demonstration hosts of the demonstrations that will be showcased under the SPIRES Project. This activity will be using results of the institutional and financing studies in Output 2.2 considering the negotiations and coordination done with target beneficiaries as well as results of the technology assessments and selection criteria in Output 3.1.1. There will also be data gathering work for the performance monitoring and evaluation of each demo. Among others, operational design and implementation will include new household connections and demand growth, comprehensive metering and records of power generation and demand profiles. The metering shall be separate for each generation type (hydro, solar, wind, diesel or hybrid configurations), and able to measure demand and power quality indicators (voltage, amperage and other parameters) daily, monthly and for the whole year period to produce good profiles of power generation and demand in different seasons and time of day.

Activity 3.1.3.2: Approval and implementation of the Memorandum of Agreement for the selected demonstrations on RE-based electricity generation and EE technology application. This activity involves the documentation of the technical and operational aspects of the RE-based power generation demonstrations. On the demand side, each demonstration will also include application of energy efficiency technologies such as the use of efficient lighting such as LEDs, energy efficient appliances, if the overall power capacity and voltage allow use of such appliances. The MOA will include duties and responsibilities of parties involved in the development of the power system reliability and maintenance improvement measures (generation, transmission, distribution, energy efficiency and conservation, fee collection and general management), the conduct of monitoring and reporting based on agreed procedures and approaches that will be utilized to address the power system reliability issues and possible conflict resolution. The progress of energy efficiency application and practice of energy conservation measures will also be monitored. The PMU will take the lead in the preparation and operationalization of the Memorandum of Agreements (MOAs) in close coordination with MMERE and other partners. This will also ensure that consideration for power system reliability and proper functioning is integrated into the MOA at all stages of planning and operations related to the RE-based system and other parts if a hybrid configuration is adopted. Commitments to safe operation, fee collection, demand side management, energy efficiency and conservation, gender mainstreaming and sound environmental practices will be spelled out in the MOA to form the legal and administrative basis of the project demonstration arrangements.

 GEF support is required for the incremental technical assistance in the design, engineering, financial and implementation plans for the demonstrations on RE-based electricity generation and EE technology application, preparation of the agreements and the travel and meeting expenses for gathering information and conduct of consultations.

Output 3.1.4: Approved design, engineering, financial and implementation plans for the replication and/or scale up of demonstrated RE-based electricity generation and EE technology applications in other off-grid areas [Gen 2]

 Activity 3.1.4.1: Evaluation of all project demonstrations (RE and EE technologies applications) and all other rural electrification projects done in the baseline. This activity entails the evaluation, documentation and preparation for dissemination of the results of all implemented RE-based generation and EE technology applications in all demonstrations as well as related baseline rural electrification projects. The results of the evaluation of each demo will be documented summarizing operating performance, RE generation volume, social/environmental/ economic impacts, GHG reduction, best practices, lessons learned, and gender mainstreaming contribution.     

 Activity 3.1.4.2: Documentation of results and formulation of recommendations for the replication and/or scale up of appropriate RE-based electricity generation and EE technology application demos in other rural areas. Based on the evaluation results in Activity 3.1.3.1, this activity involves the formulation recommendations for improvement and replication potentials. The recommendations will include the identified locations where the potential replications/up-scaling will be carried out. The results of this activity will be consolidated and will provide inputs to Activity 3.1.3.3 and to the pertinent activities in Component 4 for purposes of reporting, information packaging, training, capacity building, dissemination and basis for replication and upscaling.

 Activity 3.1.4.3: Development and approval of design, engineering, financial and implementation plans for the replication projects. This activity involves the preparation of plans for the replication and /or scale-up of the RE-based power generation, and EE technology application demos in the identified potential places where these can be technically viable and cost-effectively carried out. The plans will consider lessons learned, best practices from the demos, as well as applicable up-to-date technologies for ensuring enhanced stability, reliability and maintainability of the RE technologies for rural off-grid electrification. The plans will include detailed updated technical design, system controls, financial schemes for the implementation of the replication and upscaling and institutional arrangements that will be attractive to future owners, financiers and operators of RE-based electricity generation for rural off-grid areas. The plans will also consider experiences, best practices and lessons learned from the baseline projects. The designs will specify suitable technology components, their functions, and how these components will integrate or complement with the current and planned power grid with consideration of future generation, increased number of households and grid extension plans. Based on the designs developed and recommended, an implementation plan recommending implementation strategies of the assessed feasible RE-based electricity supply technologies will be developed. The required preparation, activities, responsibilities, timeframe and resources for each phase of the replication or upscaling programs will be defined. This activity will involve all concerned partners, stakeholders, civil society, NGOs and targeted beneficiaries to provide inputs to the engineering designs and implementation plans for the promotion of cost-effective access to electricity, opportunities for gender mainstreaming, participation of the private sector, financing institutions, community leaders, educational institutions, local government, village associations, women empowerment groups and religious institutions. Implementation of the proposed feasible RE-based technologies for rural electrification shall also include proposed contracting arrangements for various types of engagements and the final detailed engineering designs and implementation plans of the selected RE-based technologies and compatibility with the country’s grid extension plans will be the responsibility of the developer, contractor, community, institution or direct user.

GEF support is required for the incremental technical assistance in the design, engineering, financial and implementation plans for the replication projects on RE-based electricity generation and travel and meeting expenses in gathering information and conduct of consultations.

Output 3.1.5: Approved portfolio of follow-up rural electrification projects in other major off-grid areas, including investment plan [Gen 2]

 Activity 3.1.5: Development and approval of the portfolio of follow-up rural electrification projects in other major off-grid areas including resource mobilization and identification of technical capacity development needs to support the expanded rural electrification of the country. This activity involves the review of the findings in Activity 3.1.3.2 by the TWG to come up with pertinent recommendations to, and for endorsement by, the Project Board on the mix of RE-based generation and possible hybrid configurations together with engineering control systems, critical parts supply for operation and maintenance, financial and institutional strategies for optimal operation and management and technical capacity development needs (for implementation in Component 4) of the decentralized systems. The primary focus will be on the applications of appropriate and reliable technologies that have been proven in the demos and commercial installations in Solomon Islands and other PICs that can make beneficial applications from variable RE power generation from solar energy, wind energy, biomass, run-of-river mini/micro hydro and other RE systems in off-grid areas.

 GEF support is required for the incremental technical assistance in the design, engineering, financial and implementation plans for the demonstrations on RE-based electricity generation and travel and meeting expenses in gathering information and conduct of consultations and preparation of the RE portfolios for main equipment, critical parts and related supplies.

[1] Based on the available ongoing and planned projects on RE-based energy generation and EE technology applications for the local government, the private sector entities, churches, NGOs, and the communities, the following have been identified: (1) RE-based distributed generation serving mini/micro-grids; (2) RE-based power generation in boarding schools (w/ or w/o commercial sales of excess electricity generated to surrounding villages; (3) RE-based power generation and use in rural infrastructure systems (apart from power generation, e.g., water supply and treatment systems, solid waste management systems, telecommunication systems, etc.; (4) electricity and water system loss management schemes; (5) feasible RE-based energy systems for productive use applications; (6) application of demand side management schemes in provincial/municipal government buildings, EE street lighting, application of pre-paid electric meters in selected villages serve by mini-grids.