In the next iteration…

In the next iteration… 6000 4000 aflp

In the next iteration…

(Mini grid acceleration scheme)

  • Allow for a more adaptive process – Giving regular updates of operation guidelines and templates
  • Utilise technology to streamline decision-making process
  • Give more training to developers, specifically on fund raising and monitoring
  • Wider consultation with the financial sector to improve access to finance
  • Improve business models through PUE

The key lessons learnt from rolling out the first biding window of the competitive procurement process includes:

·      An adaptive process needs to be implemented, i.e., operational guidelines, templates need to be fine tuned from one bid window to the next.

·   Technology can be used to streamline decision-making process. In the bid window that is currently opened (March 2019), REA has made use of a software to receive and host expressions of interest and proposals.

·      There is a need for wider consultation with the financial sector to improve access to finance for developers. In so doing, their ability to raise private capital will increase thereby decreasing the total grant request from REA, freeing funds to deploy more mini-grids projects in the country.

·      Provide more training to developers on mini-grid value chain development process including integrating business development within their business model framework..

·      Improve business models through the modeling and stimulating productive energy uses. It is estimated that 70% of users of productive use are women and therefore in so doing, women are empowered through energy access. This will contribute to stimulate rural development. The link between small-scale and agriculture needs to be further explored to deliver maximum benefits to the community.

·      Value chain optimisation (VCO) is a criterion in the second bidding window. The VCO is to support the beneficiary communities in the sustainable processing and trading of local goods, aside from the norms – under which the mini-grid’s reliable electricity supply, local management capacities, logistics competences, accounting and controlling

capabilities are used to only supply electricity and promote productive use.