PVPS IEA International Energy Agency PHOTOVOLTAIC POWER SYSTEMS

PVPS IEA International Energy Agency PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency INSTITUTIONAL INFRASTRUCTURE FRAMEWORK PVPS FOR PV DEPLOYMENT IN DEVELOPING COUNTRIES Presentation by : Lara Bertarelli, IED ~ SIDA 10 th March 2003 ~ PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Structure of Presentation n Brief overview of the document n PVPS n n n Why? The importance The Framework Illustration through an actual project The challenges PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Two Main PV Deployment Approaches : (covered in 2 RPG’s) n Sales Model (market forces) : quality of systems? Low prices preferred to quality, after-sales services? info to consumers? Customer protection? deployment to poorest segments? Availability of credit usually limited PVPS n Service Models (Rural Electrification Programmes cum Development Programmes) many stakeholders, long-term perspective, management? Require differing levels of government intervention/ institutional back-up n The two should co-exist… n PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Direct Sales – Institutional framework needs: n Certification and standards (+ enforcement) adapted to national situations Quality control along the delivery chain n PVPS n Public information on PV, components, maintenance n Clear definition of roles of actors n Encourage dealers to offer after-sales services n Development of appropriate financing mechanisms (see RPGs) PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Institutional Framework Funding Fundamental Functions to be performed n Capacity Building/Info Dissemination The Agents needed to carry them out n Relationships: contract / code of conduct needed between the agents PVPS n Financing and Funding n Financing PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency The Public Authority’s functions : n Planning + Regulation (standards) + Enforcement + Capacity Building + Information Dissemination Committed n Coherent and co-ordinated strategy n Funding modalities n Define role of the private sector n Monitor & enforce legal obligations n Some functions can be delegated PVPS n PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency The Energy Service Provider : Provision of a service to end-users @ fair prices whilst maintaining quality of service and proper functioning of equipment n PVPS Flexible boundaries with End users n installation of the equipment n maintenance n collection of payments its’ role will be dependent on the capabilities of the end-user org. and the type of contract negotiated for n PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency The Service Contract n Concession agreement Total service delegation to an Area progressive coverage obligations n Term – technical life of equipment n Fixed ceiling fee n Payment modalities – concessionaire finance n PVPS n Operating contract Ownership remains public (community ownership) n Production, operation, maintenance, connection, billing and recovery and specific O&M contract shorter than lifetime of equipment n PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency PVPS End-user Organization n Essential component to long-term sustainability n Administration of billing, collection of payments, deal with defaults of payment n Protecting end-user interests n Providing feedback to public authority PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency The Facilitator’s functions : n n n PVPS n n Intermediary and capacity builder Full role of a regulatory structure can be delegated to it Development and provision of tools for service provider and end-users Proposing standards, developing contracts collecting data and providing feedback to the public authority Oversee drafting of contracts, provide support PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency PVPS The Relationships : PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency PVPS Illustration through the Regional Solar Pumping (RSP) programme funded by the EC PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Location of the programme : The 9 CILSS Countries PVPS + Cape Verde Mauritania Senegal Gambia Guinea Bissau Mali Niger Chad Burkina Faso 626 pumping systems Budget 63 MEuro 644 community systems (schools + hospitals) = 1. 3 MWp installed over 12 years PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency PVPS Breakdown of RSP budget (63 M€) PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Initial RSP Institutional Scheme System Management u u u PVPS u u Local community structure “Owns” and manages Voluntary basis Maintenance contract Cash account the system Provision for renewal Term account PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Rural Municipalities Water Supply Department (Control) Redefinition of Responsibilities Follow-up Control Transfer of responsibilities Service contract Accreditation Control PVPS Water Users Association (WUA) Audit and Support Control Negotiate water price Select the operator Private person Service agreement Public Service End users Water Supply PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries Maintenance contract

IEA International Energy Agency RSP Initial Financial Rules 1. End-user contribution covers : • operating costs • maintenance contract • provision for renewal of pump and inverter (but not the PV panel or the water tank and tubes) PVPS 2. 40% to 60% recovery on total water production potential ensures sustainability 3. Payment for water : • fixed fees or per quantity. • Typical water price : 250 FCFA/m 3 (0. 38 € / m 3) PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency PVPS Initial rules have been adapted to national context PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Challenges for the future 1. Continuation of the decentralisation process and clarification of roles and responsibilities : need for institutional clarification PVPS 2. Emergence of private operators : time, resources, continuity are needed 3. Build-up audit, control, financial management and support capabilities. Related costs should be included in the price of water PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency Challenges… n n PVPS n n Do the agents and stakeholders exist? Building the delivery chain (requires appropriate frameworks) With the required technical, financial, contractual and managerial capacity? (requires to make players and skills available) Are there enough projects / concessions / incentives to entice potential entities to become energy service providers -> project bundling (appropriate financial and contractual instruments) Issue of enforcement in weak legal contexts PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries

IEA International Energy Agency PVPS THANK YOU PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Task 9 - Deployment of Photovoltaic Technologies: Co-operation with Developing Countries