(2015-03) Scaling-Up Renewable Energy Program (SREP): Investment Plan for Haiti
Summary — Haiti's investment plan under the Climate Investment Funds' Scaling-Up Renewable Energy Program, dated 27 March 2015. The document states on its face that it is provisional, under review by the MTPTC, and would be issued in final form after approval and French translation.
Key Findings
- Haiti's SREP country investment plan, dated 27 March 2015, explicitly provisional and pending MTPTC approval.
- Held in the CIAT library because energy access is territorial: siting and mini-grid reach decide which places can support activity.
- The World Bank's Renewable Energy Services for All project (P156719) is the operational descendant of this plan.
Full Description
SREP is the Climate Investment Funds window for scaling up renewable energy in low-income countries, and a country investment plan is the document that sets out where the money would go. This is Haiti's, dated 27 March 2015, and it carries an unusually candid status note: the text was still under review by the Ministry of Public Works, Transport and Communications and was therefore a provisional version, to be published in final form only after approval and translation into French. Its presence in the CIAT's library rather than only the energy ministry's is itself informative, since energy access is a territorial question in Haiti: where generation is sited and which settlements a mini-grid reaches determines which places can support economic activity. The World Bank project whose resettlement framework appears elsewhere in this collection, Renewable Energy Services for All (P156719), is the operational descendant of this planning work.
Full Document Text
Extracted text from the original document for search indexing.
Climate Investment Fund
SCALING-UP RENEWABLE ENERGY PROGRAM (SREP)
SREP - Investment Plan for Haiti
March 27, 2015
Ce document est en révision par le Ministère des Travaux
Publics, Transport et Communications (MTPTC) et est donc une
version provisoire. Il sera publié dans sa version finale après
approbation et traduction en langue française.
1
CONTENTS
Contents
...................................................................................................................................................
2
Acronyms
and
Abbreviations
...........................................................................................................
4
List
of
Figures
.........................................................................................................................................
6
List
of
Tables
..........................................................................................................................................
6
List
of
Boxes
............................................................................................................................................
6
Map
............................................................................................................................................................
7
1
Country
Context:
Energy
Status
and
Policies
........................................................................
8
1.1
Haiti’s
Current
Development
Status
..............................................................................................
8
1.2
Energy
Demand
...................................................................................................................................
10
1.3
Electricity
Supply
...............................................................................................................................
11
1.4
Electricity
Pricing
...............................................................................................................................
13
1.5
Energy
Policy
and
Strategic
Framework
....................................................................................
14
1.6
The
Rural
Electrification
Challenge
.............................................................................................
15
1.7
Gender,
economic
and
social
dimension
of
Energy
in
Haiti
.................................................
18
1.8
Institutional
Framework
.................................................................................................................
22
1.9
Role
of
the
Private
Sector
................................................................................................................
23
1.9.1
Independent
Power
Producers
...............................................................................................................
23
1.9.2
RE
distributed
generation,
including
private
sector,
cooperatives
and
non-‐governmental
Organizations
(NGOs)
................................................................................................................................................
24
1.9.3
Financiers
.........................................................................................................................................................
24
2
Renewable
Energy
Sector
Context
.......................................................................................
26
2.1
Renewables
in
Haiti’s
Energy
Sector
...........................................................................................
26
2.1.1
Hydropower
....................................................................................................................................................
27
2.1.2
Biomass
.............................................................................................................................................................
29
2.1.3
Wind
...................................................................................................................................................................
30
2.1.4
Solar
....................................................................................................................................................................
32
2.2
Barriers
to
Renewable
Energy
Development
and
mitigation
measures
.........................
33
3
Renewable
Energy
National
Planning
and
Economic
Viability
...................................
38
3.1
Grid-‐connected
Renewables
...........................................................................................................
39
3.2
Off-‐Grid
Renewables
.........................................................................................................................
41
4
Prioritization
of
Strategic
Investment
Areas
....................................................................
45
4.1
Prioritization
of
potential
investments
......................................................................................
45
5
Responsiveness
to
SREP
criteria
..........................................................................................
54
6
SREP
for
Haiti:
Program
Description
..................................................................................
57
6.1
Program
Objectives
and
Expected
Outcomes
...........................................................................
57
6.2
Program
Rationale
and
Design
......................................................................................................
57
6.3
Proposed
SREP
IP
components
......................................................................................................
60
6.4
Program
Co-‐Benefits
.........................................................................................................................
64
2
7
Financing
Plan
............................................................................................................................
66
8
Institutional
Framework
for
Implementation
.................................................................
67
9
Environmental
and
Social
Aspects
.......................................................................................
68
10
Monitoring
and
Evaluation
and
Knowledge
Management
.........................................
70
10.1
Strengthening
Monitoring
and
Evaluation
.............................................................................
70
10.2
SE4ALL
Multi-‐Tier
Framework
for
Measuring
Energy
Access
..........................................
70
10.3
Results
Framework
.........................................................................................................................
72
10.4
Strengthening
Knowledge
Management
and
Lessons
Sharing
........................................
73
11
Risk
Assessment
...........................................................................................................................
75
3
ACRONYMS
AND
ABBREVIATIONS
BME
BRH
CBA
CDM
CEAC
CFI
CIAT
CIDA
CIF
CMEP
CO2
CTF
CTIPFAN
DID
ECVMAS
EDH
FI
GDP
GoH
HFO
HTG
IAP
ICF
IDB
IEA
IFC
IHSI
INFP
IP
IPP
kW
kWh
LAC
LCOE
LNG
LV
M&E
M2M
MARNDR
MCFDF
MCI
MDE
MEF
MENFP
Bureau
of
Mines
and
Energy
Bank
of
the
Republic
of
Haiti
Cost
Benefit
Analysis
Clean
Development
Mechanism
Cooperative
Electrique
de
l’Arrondisement
des
Coteaux
Centre
de
Facilitation
des
Investissements
Interministerial
Committee
for
Regional
Development
Canadian
International
Development
Agency
Climate
Investment
Fund
Council
for
Modernization
of
Public
Enterprises
Carbon
Dioxide
Clean
Technology
Fund
Climate
Technology
Initiative
Private
Financing
Advisory
Network
Desjardins
International
Development
Enquête
sur
les
Conditions
de
Vie
des
Ménages
Après
le
Séisme
Électricité
d’Haïti
Financing
Institution
Gross
Domestic
Product
Government
of
Haiti
Heavy
Fuel
Oil
Haitian
Gourde
Indoor
Air
Pollution
Interim
Cooperation
Framework
Inter-‐American
Development
Bank
International
Energy
Agency
International
Finance
Corporation
Haitian
Institute
of
Statistics
and
Informatics
l'Institut
National
de
la
Formation
Professionnelle
Investment
Plan
Independent
Power
Producers
Kilowatt
kilowatthour
Latin
America
and
Caribbean
Levelized
Cost
of
Electricity
Liquefied
Natural
Gas
Low
Voltage
Monitoring
&
Evaluation
Machine-‐to-‐Machine
Ministry
of
Agriculture,
Natural
Resources,
and
Rural
Development
Ministère
à
La
Condition
Feminine
Et
aux
Droits
de
la
Femme
(Ministry
of
Womens
Affairs
and
Womens
Rights)
Ministry
of
Commerce
and
Industry
Ministry
of
Environment
Ministry
of
Economy
and
Finance
Ministre
de
l'Éducation
Nationale
et
de
la
Formation
Professionnelle
4
MFI
MG
MJSP
MNFA
MTOE
MTPCT
MV
MW
MWp
NGOs
NRECA
NREL
OIA
OLADE
PADF
PCU
PIDG
PNDSE
PPA
PPCR
PREPSEL
PV
RENET
RESEPAG
SAC
SE4All
SELF
SHS
SME
SPP
SREP
UN
UNDP
UNEP
US
DOE
WB
WBG
WTP
Microfinance
Institution
Micro-‐Generation
Ministry
of
Justice
and
Public
Security
Government
of
Norway
Ministry
of
Foreign
Affairs
Million
Ton
Oil
Equivalent
Ministry
of
Public
Works,
Transportation
and
Communications
Medium
Voltage
Megawatt
Megawatt-‐Peak
Non-‐Governmental
Organizations
National
Rural
Electric
Cooperative
Association
National
Renewable
Energy
Laboratory
Operations
Improvement
Agreement
Latin
American
Energy
Organization
Pan
American
Development
Foundation
Project
Coordination
Unit
Private
Infrastructure
Development
Group
National
Energy
Sector
Development
Plan
Power
Purchase
Agreement
Pilot
Program
for
Climate
Resilience
Projet
de
Réduction
de
Pertes
dans
le
Secteur
Electrique
Photovoltaic
Renewable
Energy
Education
Network
Strengthening
Agriculture
Public
Services
Program
Semi-‐Autonomous
Centers
Sustainable
Energy
for
All
Solar
Electric
Light
Fund
Solar
Home
System
Small-‐Medium
Enterprise
Small
Power
Producers
Scaling-‐up
Renewable
Energy
Program
United
Nations
United
Nations
Development
Program
United
Nations
Environment
Program
United
States
Department
of
Energy
World
Bank
The
World
Bank
Group
Willingness
to
Pay
5
LIST
OF
FIGURES
Figure 1. Geographical Map of Haiti............................................................................................... 7
Figure 2. Haiti’s 10 Administrative Departments ......................................................................... 10
Figure 3. Poverty (blue) and Extreme Poverty (green) by Department........................................... 9
Figure 4. Electricity Expenditure Patterns in Artibonite and Port-au-Prince ................................ 19
Figure 5. A Birds-Eye View of Haiti’s RE Potential .................................................................... 26
Figure 6. Haiti Hydroelectric Power Production by year .............................................................. 27
Figure 7. Seasonal Variability of Hydro Power ............................................................................ 28
Figure 8. Haiti Sugarcase Biomass Potential................................................................................. 29
Figure 9. Map of Wind Potential in Haiti ...................................................................................... 30
Figure 10. Illustration of typical Diurnal Wind Energy Profile .................................................... 31
Figure 11. Solar Energy Resource Map of Haiti ........................................................................... 33
Figure 12. EDH RE Supply Curve ................................................................................................ 42
Figure 13. RE Generation Cost vs. Thermal EDH and Cogen ...................................................... 43
Figure 14. The spatial distribution of survey respondents (digicel 2014) ..................................... 42
Figure 15. SREP Assessment of the Offgrid Village Grid Potential in Haiti ................................ 43
Figure 16. Initial simulations of the average annual fuel savings ................................................. 50
Figure 17. Definition of Energy Access and Multi-Tier Framework ............................................ 71
LIST
OF
TABLES
Table 1. edh GRIDS – CAPACITY AND CUSTOMERS............................................................ 13
Table 2. Penetration of renewable energy technologies in rural and urban areas ......................... 17
Table 3. Average Electricity Expenditure by Department ............................................................ 19
Table 4. Estimates for Remaining “Additional” Pico-to-Small Hydro Power Potential ............... 28
Table 5. Main barriers and constraints to renewable energy development ................................... 34
Table 6. Snapshot of Ongrid RE Business Models Comparative Analysis ................................... 47
Table 7. Snapshot of Potential Ongrid & Offgrd RE Business Models ........................................ 48
Table 8. Off-grid electrification potential...................................................................................... 51
Table 9. Rank for Final Selection of SREP-Haiti Projects ............................................................ 52
Table 10. Five Proposed SREP-Haiti Investment Program Projects ............................................. 53
Table 11. Summary of Projects’ Responsiveness to SREP Criteria .............................................. 54
Table 12. SREP Financing, Co-financing and Private Sector Financing Leverage ...................... 66
Table 13. SREP Results Framework ............................................................................................. 72
Table 14. Main Identified Risks and Mitigation Measures ........................................................... 75
LIST
OF
BOXES
Box 1. Government’s program for reducing EDH losses .............................................................. 16
Box 2. Haiti Safico/MicamaSoley ................................................................................................. 21
Box 3. Building M&E capacity for the key sectorial agencies s ................................................... 70
Box 4. World Bank’s Systematic Country Diagnostic (Feb 2015) ............................................... 73
6
MAP
FIGURE
1.
GEOGRAPHICAL
MAP
OF
HAITI
Source:
http://mapsof.net/uploads/static-‐maps/un_haiti.png
7
1
COUNTRY
CONTEXT:
ENERGY
STATUS
AND
POLICIES
1.1
HAITI’S
CURRENT
DEVELOPMENT
STATUS
Haiti
accounts
for
one
third
of
the
Hispaniola
Island
in
the
Caribbean,
neighbouring
the
Dominican
Republic
and
covers
a
territory
of
27,750
km2.
The
Haitian
Institute
of
Statistics
and
Informatics
(IHSI),
estimates
the
current
population
at
10.9
million
people,1
which
makes
Haiti
one
of
the
most
densely
populated
countries
in
the
Latin
America
and
Caribbean
(LAC)
Region.1
In
addition,
at
least
2.5
million
Haitians
are
estimated
to
live
abroad.
The
Haitian
diaspora
is
an
important
source
of
remittances,
which
is
estimated
to
amount
to
well
over
US$1.8
billion
annually. 2
This
is
comparable
in
magnitude
to
approximately
one
third
of
Haiti’s
GNP
and
in
fact
exceeded
all
international
assistance
combined
following
the
2010
earthquake.
FIGURE
2.
HAITI’S
10
ADMINISTRATIVE
DEPARTMENTS
Administratively,
the
country
is
organized
into
10
departments
(Figure
2);
more
than
a
third
of
the
Haitian
population
lives
in
the
Western
department
(Ouest),
which
contains
the
capital
(Port-‐
au-‐Prince)
metropolitan
area.
Haiti
has
experienced
steady
urbanization
over
the
last
30
years,
with
rural
population
share
declining
from
75.5%
in
1983
to
55.6%
in
2003,
projected
to
fall
to
48.1%
by
2015.3
Haiti’s
GDP
per
capita
stands
at
US$820
in
2013 4 —compared
to
LAC
average
of
US$11,770. 5
According
to
the
latest
ECVMAS
household
survey
in
2012,
6
million
out
of
10.4
million
(almost
60%)
of
the
1
Haiti
Census,
2003
2
FONKOZE,
2012
3
Haiti
Statistical
Institute
4
World
Bank,
2014
5
PPP,
2011
8
population
was
poor,
living
under
the
national
poverty
line
of
US$2
per
day,
and
almost
a
quarter
of
the
population
was
extremely
poor,
living
below
US$1
a
day.
Haiti
ranks
161st
in
the
UN’s
2014
Human
Development
Index
(2014).
Economic
development
has
repeatedly
been
interrupted
by
external
shocks,
including
food
and
fuel
price
fluctuations
and
natural
disasters.
The
most
devastating
impact
was
registered
from
the
magnitude-‐7.0
earthquake
on
January
12,
2010,
which
killed,
according
to
Government
sources,
around
300,000
people
and
displaced
1.5
million
in
Haiti’s
capital
and
nearby
towns,
making
it
one
of
the
deadliest
natural
disasters
on
record.
It
resulted
in
damages
and
losses
of
around
US$8
billion
(120%
of
GDP).
One
third
of
the
country’s
civil
servants
and
most
of
government
buildings
disappeared
in
the
earthquake.
The
country
is
only
now
beginning
to
recover
from
this
disaster.
There
is
an
increasing
disparity
in
poverty
between
urban
and
rural
areas.
38%
of
the
population
in
rural
areas
is
still
unable
to
satisfy
its
nutritional
needs
and
almost
70%
of
rural
households
are
considered
chronically
poor
–
being
both
below
the
poverty
line
and
lacking
access
to
basic
goods
and
services,
making
it
especially
difficult
for
them
to
emerge
from
poverty.
Eighty
percent
of
those
classified
as
extremely
poor
live
in
rural
areas.
The
poverty
also
varies
geographically.
The
poorest
Departments
are
the
farthest
from
the
capital
and
the
most
isolated—North-‐West,
North-‐East
and
South
(Figure
3).
In
addition,
Haiti
is
the
most
unequal
country
in
the
LAC
region.
The
richest
quintile
holds
over
64%
of
the
total
income
of
the
country,
compared
to
the
poorest
quintile
holding
less
than
1%.
As
of
2012,
the
Gini
coefficient
is
0.61,
the
highest
in
the
region.
FIGURE
3.
POVERTY
(BLUE)
AND
EXTREME
POVERTY
(GREEN)
BY
DEPARTMENT
Sources:
ECVMAS
2012;
World
Bank
In
order
to
decrease
rural
and
urban
disparities,
the
Government
has
embarked
in
the
process
of
decentralization
since
1987.
Since
2006,
the
law
on
decentralization
allows
9
municipal
government,
among
others,
to
implement
municipal
production,
distribution
and
commercialization
of
energy,
as
well
as
manage
municipal
energy
infrastructure.6
Although
the
framework
for
decentralization
exists,
in
practice
access
to
public
services
and
public
goods
mainly
occurs
in
the
largest
metropolitan
areas.
The
capital
metropolitan
area
is
rapidly
growing,
and
at
nearly
three
million
people—and
an
infrastructure
dating
back
to
the
late
1970’s—the
urban
center
is
unable
to
function
with
efficacy;
the
negative
externalities
hinder
further
growth.
Therefore,
Government
policies
continue
targeting
investments
and
job
creation
in
secondary
cities.
Access
to
reliable
and
affordable
energy
in
secondary
and
tertiary
cities,
as
well
as
in
rural
areas,
is
a
lynchpin
to
this
decentralization
process.
Government
strongly
believes
that
SREP
can
play
a
supportive
role
to
increase
access
to
decentralized
sources
of
power,
particularly
in
isolated
rural
areas.
1.2
ENERGY
DEMAND
Haiti’s
energy
sector
is
characterized
by
intensive
use
of
biomass
fuel
(mostly
firewood
and
charcoal),
imported
fossil
fuels
and
a
largely
untapped
renewable
energy
potential.
Total
primary
energy
consumption
in
Haiti
is
0.38
tons
of
oil
equivalent
(toe)
per
capita,
one
of
the
lowest
in
the
world,
and
only
a
fraction
of
the
average
consumption
in
LAC
countries.
According
to
the
International
Energy
Agency
(IEA),
Haiti
consumed
a
total
of
4
million
tons
of
oil
equivalent
(MTOE)
in
2012,
of
which
20%
(0.8
MTOE)
consisted
of
net
imports
of
conventional
energy
sources.
Haiti’s
total
petroleum
product
imports
amounted
to
US$755
million
in
2012.7
In
the
same
year,
biomass
(wood
and
charcoal
primarily,
but
also
sugar
cane/bagasse
waste
in
much
less
volume)
represented
75%
of
total
energy
consumption,
petroleum
products
comprised
23%,
and
hydropower
accounted
for
3%
.
The
residential
and
commercial
sectors
account
for
most
of
the
energy
used
in
Haiti.
Charcoal,
made
from
the
rapidly
declining
resource
of
trees
in
Haiti,
is
the
single
largest
source
of
household
energy
in
urban
areas
(91%
of
households
use
charcoal).8
In
rural
areas,
woodfuel
(twig)
dominates
as
the
primary
fuel
for
household
cooking.
Inefficient
cooking
practices,
coupled
with
high
population
density
and
severe
poverty,
place
an
enormous
burden
on
Haiti's
natural
resources.9
Efforts
are
ongoing
to
increase
adoption
of
efficient
cook
stoves
to
reduce
charcoal
consumption
and
combat
deforestation.
Electricity
is
available
to
only
about
a
third
of
Haitian’s
population.
In
rural
areas,
electricity
is
rare
(5%)
and
the
Haitian
households
primarily
rely
on
kerosene
lamps
and
6
Decree
of
February
1st
2006,
articles
114
-‐
115
7
BRH
8
Berkeley
Study,
2003
9
UNEP,
2013
10
candles.
Following
the
2010
earthquake,
the
dissemination
of
solar
lanterns
by
NGOs
(first
phase)
and
sales
by
private
companies
(second
phase)
have
helped
reduce
the
consumption
of
kerosene
used
for
lighting,
but
most
of
the
unelectrified
population
still
relies
on
kerosene.
According
to
Entrepreneurs
du
Monde,
nearly
7%
of
an
average
Haitian
household
budget
is
devoted
to
lighting;
emerging
results
of
the
ECVMAS
2012
and
Digicel/iiDevelopment
2014
survey10
are
in
line
with
this
estimate.
Poor
households
spend
relatively
more
on
lighting
than
better
off
households.
Improving
access
to
reliable
modern
electricity
services,
particularly
in
rural
areas,
is
therefore
one
of
the
key
Government
priorities.
The
electricity
demand
has
been
rapidly
increasing
in
the
recent
years,
following
Haiti’s
economic
growth.11
But
the
structural
lack
of
power
supply
capacity
has
increased
the
volume
of
unmet
demand,
and
the
development
of
autonomous
generation,
both
for
personal
and
professional
/
community
uses.
The
current
peak
demand
is
estimated
at
over
500
MW
and
is
estimated
to
surpass
TBD
MW
by
2020.
It
is
therefore
essential
that
Haiti’s
generation,
transmission
and
distribution
capacity
increases
correspondingly,
so
that
economic
growth
is
not
constrained
by
electricity
shortages.
Renewable
energy
plays
a
prominent
role
in
Government’s
plan
to
expand
generation
capacity,
and
the
Government
considers
SREP
the
key
tool
for
bringing
in
the
required
transformative
change
to
attract
renewable
energy
investments.
1.3
ELECTRICITY
SUPPLY
The
main
provider
of
electricity
services
in
Haiti
is
the
national,
Government-‐owned
utility
Electricité
d’Haiti
(EDH).
Generation
and
transmission
EDH
generates
approximately
15%
of
energy
produced
in
Haiti,
with
the
rest
coming
from
independent
power
producers
and
the
Tripartite
Cooperation
(Haiti-‐Venezuela-‐Cuba)12
Current
electricity
infrastructure
is
aging
and
has
been
poorly
maintained.
Installed
generation
capacity
is
about
320
MW
(Table
1),
of
which
only
176
MW
is
available13—
10
In
the
context
of
the
Third
Rural
Energy
Forum
in
November
2014,
consultations
with
potential
1,400
urban
and
rural
household
beneficiaries
were
held
through
a
telephone
survey
carried
out
in
partnership
with
Digicel
(Haiti
cell
phone
operator).
iiDevelopment
then
analyzed
the
data
to
inform
the
SREP-‐Haiti
IP.
11
More
precise
demand
growth
projections
are
currently
being
developed
under
the
new
Electricity
Master
Plan.
12
Since
2007,
the
Bolivar
-‐
Pétion
-‐
Martí
Convention
(Venezuela
-‐
Haiti
-‐
Cuba)
confirmed
the
participation
of
the
Venezuelan
International
Brigade
in
what
is
defined
as
‘integral
development’:
cooperation
for
the
transformation
of
the
structural
problems
of
Haiti.
That
same
year,
the
Tripartite
Intergovernmental
Cooperation
Office
Haiti
-‐
Cuba
–
Venezuela
was
installed
in
Port-‐au-‐Prince.
Specific
plans
include
cooperation
in
the
areas
of
health
and
education,
agriculture
and
fair
trade,
as
well
as
three
‘grannacional’
projects
related
to
energy
resources.
13
EDH,
March
2015
11
insufficient
to
meet
estimated
peak
load
demand
of
more
than
500
MW,
resulting
in
frequent
load-‐shedding
and
service
interruptions.14
Most
of
the
power
is
supplied
through
oil-‐based
thermal
generation
(81%
of
diesel
and
fuel
oil),
with
hydropower
contributing
19%.
Other
than
hydropower,
there
is
no
other
grid-‐connected
renewable
energy
capacity.
The
largest
hydro
plant
is
Péligre
(54
MW),
currently
under
rehabilitation
together
with
the
associated
transmission
line
connecting
the
plant
to
the
metropolitan
area,
resulting
in
a
temporarily
reduced
power
output
from
the
plant.
Once
completed,
increased
hydropower
and
transmission
line
capacity
will
facilitate
integration
of
intermittent
renewable
energy
into
the
grid.
EDH
owns
eight
other
hydro
plants
of
smaller
sizes,
of
which,
however,
only
one
is
fully
operational.
Distribution
EDH
operates
one
main
interconnected
grid
covering
the
metropolitan
area
and
11
isolated
grids,,
serving
about
260,000
“active”
customers
(Annex
VI).15
Most
of
these
customers
are
on
the
main
grid
covering
Port-‐au-‐Prince
and
the
surrounding
areas,
where
also
most
industrial
and
business
customers
are.
In
2014,
EDH’s
1,308
industrial
customers
represented
about
40%
of
the
power
demand.
The
isolated
grids
serve
the
rest
of
the
country,
with
power
mostly
supplied
intermittently
by
diesel
units
and
some
hydropower,
both
with
O&M
problem
EDH
faces
considerable
technical,
managerial
and
financial
challenges.
Technical
and
non-‐
technical
losses
are
at
65%,
large
part
of
which
can
be
accounted
for
by
the
illegal
grid
connections.
In
addition,
collection
rate
is
only
at
two
thirds—meaning
that
EDH
recovers
only
22%
of
the
value
of
electricity
it
generates.
The
losses
contribute
to
an
annual
financial
deficit
of
US$200
million—equivalent
to
4%
of
the
national
budget..
Consequently,
EDH
faces
difficulties
to
pay
for
fuels,
basic
maintenance
services
and
other
operating
costs,
and
is
relying
on
Government
subsidies
to
bridge
the
gap.
14
EDH,
PPCR
–
CIAT
15
“Active”
describes
customers
that
are
connected
legally
and
regularly
pay
bills
according
to
EDH.
The
total
number
of
people
with
electricity
access
(including
“irregular”
users)
is
larger,
estimated
at
350,000+.
12
TABLE
1.
EDH
GRIDS
–
CAPACITY
AND
CUSTOMERS
Grid
Metropolitan
Installed
capacity
Available
capacity
(kW)
(kW)
248,000
98,800
Number
of
active
customers
160,487
Centre
(Onde-‐Verte)
650
500
788
Nord
14,400
10,500
17,435
Nord-‐ouest
2,500
2,200
3,557
Nord-‐est
5,750
4,500
4,540
Sud(Cayes)
11,600
7,600
21,246
Sud-‐est(Jacmel)
5,150
4,450
11,413
Sud-‐est(Bainet)
310
200
included
in
Jacmel
Artibonite
24,650
19,200
20,645
Grand-‐Anse
(Jeremie)
2,450
2,200
3,327
Ouest(Arcahaie)
2,000
0
2,611
Ouest
(La
Gonave)
425
350
625
Source:
EDH,
2015
The
average
daily
electricity
service
of
only
16
hours
compels
most
industries
to
self-‐
generate,
reducing
their
competitiveness.
It
is
estimated
that
the
cumulative
capacity
of
individual
diesel
gen-‐sets
in
the
country
is
more
than
200
MW
(more
than
the
available
power
of
150
MW
supplied
through
EDH).
More
recently,
solar
PV
power
has
started
to
emerge
as
an
alternative
for
self-‐supply
in
both
urban
and
rural
areas,
but
the
solar
PV
industry
in
Haiti
is
still
very
small
and
in
the
naascent
stage.
1.4
ELECTRICITY
PRICING
Current
electricity
tariffs
were
established
in
2009,
however,
as
part
of
an
ongoing
Electricity
Master
Plan
study,
EDH
is
conducting
an
investment
plan
and
tariff
reform
analysis.
Tariffs
are
distinguished
by
user
(residential,
commercial,
and
industrial
and
organizations),
by
location
(within
or
outside
Port-‐au-‐Prince)
and
by
kWh
usage.
Users
are
charged
a
monthly
fee,
plus
an
additional
tariff
based
on
usage.
Residential
tariffs
(US$0.21/kWh)
are
below
the
average
of
the
Caribbean
region,
but
tariffs
for
the
industrial
and
commercial
customers
are
on
the
higher
end
of
the
regional
range
(US$0.30/kWh).
Connection
fees
are
also
differentiated
by
the
type
of
the
user,
and
are
about
$65
for
residential
customers.
Higher
rates
are
charged
for
commercial
and
industrial
customers.
13
1.5
ENERGY
POLICY
AND
STRATEGIC
FRAMEWORK
The
Government
vision
for
the
energy
sector
is
based
on
the
Strategic
Plan
for
the
Development
of
Haiti
(SPDH),
which
sets
a
path
for
Haiti
to
become
an
emerging
economy
by
2030.
The
SPDH
plan
envisages,
inter
alia,
to
strengthen
the
private
sector
and
the
provision
of
basic
services
to
the
population
including
electricity.
The
Martelly16
administration
has
identified
energy
as
one
of
its
five
priorities—the
five
‘E’s
(alongside
education,
employment,
environment
and
rule
of
law
–
‘état
de
droit’).
The
January
2012
Draft
Energy
Policy
Report
(Avant-‐Projet
de
Politique
Energétique
d’Haïti)
defined
the
Government’s
five
key
objectives
of
its
energy
policy
as
follows:
(i)
Ensure
sufficient
supply
to
meet
demand
and
support
economic
growth;
(ii)
Promote
energy
savings
and
efficiency;
(iii)
Promote
development
of
indigenous
renewable
sources
of
energy;
(iv)
Pursue
exploration
of
fossil
fuel
sources
in
Haiti;
and
(v)
Create
a
regulatory
framework
to
encourage
the
development
of
supply
while
protecting
the
environment.
The
present
National
Energy
Sector
Development
Plan
for
the
period
2007-‐2017
recommends
specific
improvement
and
development
measures
for
the
energy
sector
but
is
now
rather
outdated,
as
it
was
completed
before
the
2010
earthquake
which
dramatically
altered
the
energy
sector
development
needs.
EDH
is
in
the
process
of
developing
a
new
Electricity
Master
Plan,
which
should
be
available
in
late
2015.
The
January
2010
earthquake
exacerbated
the
challenges
faced
by
the
sector
by
worsening
EDH’s
financial
situation
and
undermining
institutional
and
managerial
capacities.
The
earthquake
also
damaged
or
destroyed
a
wide
range
of
electricity
infrastructure,
increasing
the
emphasis
on
the
physical
inventory
and
the
need
to
rehabilitate
assets.
In
the
post-‐earthquake
years,
the
Government
therefore
focused
on
rebuilding
the
essential
energy
infrastructure
and
making
sure
that
critical
loads
were
supplied
in
short-‐
and
medium-‐
term.
This
reconstruction
of
energy
infrastructure
now
being
mostly
completed,
the
Government
is
moving
to
longer-‐term
priorities
embodied
in
the
SPDH
plan.
Reaching
the
SPDH
goal
of
becoming
emerging
country
by
2030
will
require
dual
electrification
efforts:
(i)
supporting
off-‐grid
electrification
efforts
for
rural
areas
that
will
not
be
served
by
EDH;
and
(ii)
improving
EDH
performance
and
supporting
on-‐grid
generation
capacity
to
enable
EDH
to
provide
reliable
and
affordable
electricity
services
in
urban
areas
and
surroundings.
16
Presidential
and
legislative
elections
launched
in
November
2010,
were
concluded
in
May
2011,
with
the
swearing
in
of
President
Michel
Joseph
MARTELLY.
He
was
the
first
opposition
candidate
in
Haiti's
history
to
accede
to
the
post
by
democratic
transition.
14
In
this
context,
power
sector
reform
and
measures
to
improve
financial
performance
of
EDH
are
of
critical
importance.
The
Government’s
approach
to
address
EDH
precarious
financial
situation
consists
of
three
parallel
tracks:
1. Reduce
EDH
losses
by
targeted
investments
in
rehabilitation
of
existing
transmission
and
distribution
lines
and
a
comprehensive
plan
to
reduce
commercial
losses,
starting
with
improving
collections
through
the
installation
of
new
meters.
The
Government
has
developed
a
specific
loss
reduction
program,
which
is
now
also
being
adopted
as
one
of
the
key
elements
of
the
IMF
program
for
Haiti
World
Bank’s
Rebuilding
Infrastructure
and
Access
Project
is
providing
technical
support
and
financing
for
its
implementation.
The
key
elements
of
the
program
are
included
in
Box
1.
2. Increase
availability
and
reduce
costs
of
power
supply,
decreasing
EDH
dependency
on
the
expensive
fossil-‐fuel
generators
provided
by
IPPs.
The
diversification
options
include
rehabilitation
of
existing
hydro
plants,
LNG
imports
for
power
generation,
and
an
increased
share
of
renewable
energy
in
the
generation
mix.
The
Government
sees
the
SREP
program
as
a
catalyst
to
implement
this
ambition.
3. Prepare
the
ground
for
a
broader
legal,
institutional
and
regulatory
reform,
which
would
clarify
the
legal
framework,
open
the
electricity
sector
to
competition,
incentivize
private
sector
investments
and
establish
a
regulatory
agency.
The
lack
of
a
clear
regulatory
environment
is
considered
as
one
of
the
main
bottlenecks
to
developing
the
energy
sector
in
general
and
scaling-‐up
renewable
energy
activities
in
particular.
The
legal
framework,
based
on
1989
Organic
Law
of
Electricity
is
by
now
very
outdated,
and
discourages
private
sector
investments.
The
resulting
lack
of
competition
is
hurting
consumers
and
constraining
further
development
of
this
critical
sector.
The
Government
is
currently
carrying
out
various
studies
to
help
it
structure
these
broader
sector
reforms.
1.6
THE
RURAL
ELECTRIFICATION
CHALLENGE
Rural
Electrification
Status
and
Expenditure
Patterns
The
latest
available
official
electrification
rate
according
to
EDH
is
30%,
but
estimates
vary
due
to
unreliable
statistics.17
The
electricity
consumption
per
capita
is
more
than
80
times
lower
than
the
average
for
the
LAC
region
at
about
30
kWh
per
year,
reflecting
the
severe
supply
constraints
discussed
above,
the
low
electricity
access,
and
low-‐income
levels.
The
distribution
of
electricity
access
is
also
highly
unequal:
while
electricity
access
in
Port-‐au-‐
17
The
recent
ECVMAS
2012
and
Digicel/iiDevelopment
2014
surveys
suggest
a
significantly
higher
rate
of
access
for
2014
(approaching
50%),
especially
if
illegal
connections
and
solar
home
systems
are
fully
accounted
for.
ECVMAS
2012
estimates
an
electrification
of
35%
in
2012,
and
Digicel/iiDevelopment
Survey
2014
found
evidence
for
an
even
higher
electrification
rate
(depending
on
definition)
by
December
2014
(around
45%
after
accounting
for
the
inherent
phone
survey
bias).
However,
it
should
be
noted
that
both
of
these
were
not
primarily
geared
towards
measuring
grid
access
rates,
so
they
only
provide
rough
indications
of
national
access
growth;
the
SREP
baseline
surveys
will
therefore
establish
a
more
exact
baseline.
15
Prince
is
relatively
high
if
irregular
connections
are
accounted
for,
access
in
rural
areas
remains
extremely
low.
On
average,
households
in
Haiti
currently
spend
about
US$30
per
month
on
electricity
or
electricity-‐substitutable
expenditures.
However,
the
Departmental
and
rural/urban
averages
vary
strongly,
and
spendings
are
distributed
such
that
the
poorest
half
spend
much
less
than
this
average,
as
Table
2
in
the
next
section
show.18
BOX
1.
GOVERNMENT’S
PROGRAM
FOR
REDUCING
EDH
LOSSES
EDH
Management
has
recently
developed
an
ambitious
performance
improvement
and
loss
reduction
program,
which
is
now
being
finalized
with
direct
involvement
of
MTPTEC
and
MEF,
and
support
from
MDBs
and
the
IMF.19
World
Bank’s
Rebuilding
Infrastructure
and
Access
Project
is
providing
technical
support
and
financing
for
the
implementation
of
all
activities
related
to
this
plan,
as
needed.
Short
term
objectives
of
this
plan
are
to
achieve
overall
yearly
savings
amounting
over
US$
70
million
to
the
utility
(around
40%
of
the
annual
budget
transfers
to
EDH),
through
(a)
an
optimization
of
fuel
and
electricity
purchase
(where
the
savings
potential
on
EDH
costs
is
the
most
important),
and
(b)
significant
improvement
of
all
parts
of
the
commercial
value
chain
(new
meters
installation,
automatic
billing
and
bill
recovery)
with
the
objective
of
improving
the
commercial
losses
by
6%
in
one
year.
Renewable
Energy
solutions
to
electricity
needs
With
EDH
absent
in
most
of
the
rural
areas,
local
governments
and
users
have
been
largely
left
on
their
own
to
find
solutions
to
their
electricity
needs.
Up
to
very
recently,
individual
diesel
systems
(for
AC
power),
kerosene
and
candles
(for
lighting)
were
the
only
available
options
for
most
people
and
diesel
gen-‐sets
for
businesses
in
rural
areas.
As
most
households
own
cell
phones,
they
also
spend
considerable
amounts
for
their
charging
at
commercial
charging
stations.
While
more
than
36
smaller
towns
have
diesel-‐powered
mini-‐grids
built
by
the
municipal
governments
only
a
few
of
those
are
still
in
(regular)
operation—and
where
they
are,
service
is
typically
available
for
only
a
few
hours
in
the
evening.
More
recently,
renewable
energy
technologies,
especially
solar
PV,
have
started
to
penetrate
rural
areas,
reflecting
the
global
trend
of
falling
costs
of
solar
PV,
availability
of
low-‐cost,
high-‐performance
LED-‐lights,
and
the
emergence
of
new
business
models
aiming
at
serving
rural
customers.
According
to
a
SREP/IDA-‐funded
Digicel/iiDevelopment
phone
survey
of
1,400
urban
and
rural
households
in
November
2014,
the
penetration
of
solar
lanterns
and
small
kits
in
rural
areas
is
high
in
international
comparison.
However,
it
varies
considerably
18
ECVMAS
2012
and
Digicel/iiDevelopment
2014
Survey
data
19
IMF
intends
to
include
this
EDH
recovery
plan
as
a
structural
measure
of
its
2015-‐2018
program
in
Haiti,
to
support
the
rapid
reduction
of
budget
transfers
to
the
state
power
utility
16
geographically:
The
share
of
households
with
a
solar
lantern
or
small
system
ranges
from
9%
in
the
Central
Department
to
almost
40%
in
South-‐East,
with
national
penetration
at
about
16-‐17%
(See
Appendix
for
details).
TABLE
2.
PENETRATION
OF
RENEWABLE
ENERGY
TECHNOLOGIES
IN
RURAL
AND
URBAN
AREAS
Share
of
HH
owning
shs
or
pico
Column
Labels
Row
Labels
ARTIBONITE
CENTRE
GRAND
ANSE
NIPPES
NORTH
NORTH
EAST
NORTH
WEST
PORT
AU
PRINCE
SOUTH
SOUTH
EAST
Rural
10%
10%
19%
31%
18%
12%
24%
6%
39%
44%
Number
of
HH
with
HH
without
Hoseholds:
solar
solar
402,126
40,213
361,913
Grand
Total
Urban
(blank)
unweighted
163,133
15,207
147,926
10%
10%
98,725
25,445
73,280
81,236
28,256
52,980
9%
9%
213,773
33,533
180,240
37%
26%
81,183
12,490
68,693
44%
35%
146,283
36,834
109,449
12%
16%
890,601
88,470
802,131
17%
15%
162,019
55,655
106,364
26%
25%
141,996
53,113
88,883
16%
10%
2,381,075
389,216
1,991,859
thus
weighted
average
Haiti:
27%
34%
26%
37%
100%
16%
84%
Source:
Digicel/iiDevelopment
Survey
(2014)
Paradoxically,
the
earthquake
served
as
the
catalyst
for
the
initial
speed
of
diffusion
of
off-‐
grid
renewables
in
Haiti.
With
much
of
the
electricity
infrastructure
destroyed,
solar
lanterns
have
been
brought
into
the
country
as
part
of
the
post-‐earthquake
assistance.
These
lanterns,
originally
used
by
displaced
people
in
the
camps,
have
eventually
found
their
way
to
rural
areas
and
triggered
demand
for
similar
products.
The
quality
of
some
products,
however,
is
an
issue.
It
is
estimated
that
there
are
at
least
about
300,000
solar
lanterns/kits
in
use
in
Haiti,20
but
only
about
half
of
them
are
quality-‐certified
products,
distributed
mostly
by
local
SMEs
and
NGOs.
The
four
leading
lantern
distributors
in
Haiti
have
cumulatively
sold
well
over
150,000
Lighting
Global
quality-‐certified
lanterns, 21
providing
basic
electricity
services
to
more
than
half
a
million
people.
The
post-‐earthquake
assistance
has
also
triggered
investments
in
street
lighting.
Originally
started
as
a
reconstruction
effort,
the
program
has
eventually
been
expanded
to
rural
areas,
and
has
actively
been
supported
by
the
Government,
mainly
through
the
“Ban
m
limye,
Ban
m
lavi”
(“Give
me
light,
give
me
life”)
program.
There
are
about
13,500
solar
streetlights
installed
in
140
municipalities
of
Haiti’s
10
Departments.
The
increased
involvement
of
diaspora,
NGOs
and
the
private
sector
has
led
to
the
emergence
of
several
new,
highly
innovative
approaches
to
support
provision
of
20
Digicel/iiDevelopment
phone
survey
21
Sales
reported
by
the
solar
lantern
distributors
17
sustainable
energy
services
in
off-‐grid
areas.
Annex
IV
provide
examples
of
these
Haiti-‐
grown
innovative
business
models,
ranging
from
micro-‐finance
for
solar
lanterns,
to
leveraging
mobile
payments
platforms
for
providing
off-‐grid
energy
services,
and
to
deployment
of
smart
village
micro-‐grids.
Many
of
these
initiatives
have
key
attributes
for
replicability
and
scalability
under
SREP.
1.7
GENDER,
ECONOMIC
AND
SOCIAL
DIMENSION
OF
ENERGY
IN
HAITI
Development
and
Energy
The
2015
Haiti
Poverty
Assessment
by
the
World
Bank
states
that,
despite
a
decline
in
both
monetary
and
multidimensional
poverty
rates
since
2000,
poverty
still
remains
high
per
regional
standards.
Access
to
basic
services
is
generally
low
and
is
characterized
by
glaring
inequalities.
The
Poverty
Assessment
highlights
that
special
attention
should
be
given
to
vulnerable
groups
such
as
women
and
children
and
to
rural
areas,
where
extreme
poverty
persists
and
where
income
inequality
is
increasing.
Households
pay
significant
amounts
for
electricity
and
its
substitutes.
Surveys
carried
out
in
preparation
of
the
IP
found
that
more
than
50%
of
households
pay
more
than
$20
per
month.
However,
expenditure
patterns
vary
geographically
(Table
3)
and
between
urban
and
rural
areas.
For
example,
in
Artibonite,
about
80%
of
the
population
spend
less
than
UD$8
per
month
on
electricity
(and
its
substitutes),
while
in
Port-‐au-‐Prince,
only
10%
pay
less
than
that.
(Figure
4
shows
these
different
willingness
to
pay
distributions
patterns.)
18
FIGURE
4.
ELECTRICITY
EXPENDITURE
PATTERNS
IN
ARTIBONITE
AND
PORT-‐AU-‐PRINCE
Source:
Digicel/iiDevelopment
Survey
2014
TABLE
3.
AVERAGE
ELECTRICITY
EXPENDITURE
BY
DEPARTMENT
Average
current
substitutable
energy
expenses
[$/m]
Rural
Urban
ARTIBONITE
$
13.04 $
23.65
CENTRE
$
22.84 $
29.43
GRAND
ANSE
$
20.78 $
34.86
NIPPES
$
10.66 $
26.72
NORTH
$
14.68 $
36.66
NORTH
EAST
$
17.95 $
24.74
NORTH
WEST
$
22.32 $
37.14
PORT
AU
PRINCE
$
42.80 $
44.76
SOUTH
$
11.37 $
31.17
SOUTH
EAST
$
13.22 $
23.47
(blank)
thus,
aprox.
weighted
national
average
unweighted
average
$
16.85
$
25.06
$
27.51
$
14.99
$
24.16
$
22.37
$
29.57
$
43.67
$
18.47
$
16.72
$
29.55
Source:
Digicel/iiDevelopment
Survey
2014
Recognizing
that
access
to
modern
energy
and
development
are
intrinsically
linked
drives
the
Government’s
efforts
to
increase
access
to
modern
energy
services
for
its
people.
The
Poverty
Assessment
highlights
the
importance
of
electricity
as
one
of
the
key
inputs
to
elevate
productivity
and
create
jobs
for
both
employers
and
the
self-‐employed
by
undertaking
complementary
investments
in
basic
infrastructure
and
removing
the
constraints
on
access
to
inputs.
This
includes
augmenting
both
credit
and
skills;
with
a
special
attention
to
women,
who
are
particularly
disadvantaged
in
labour
markets.
19
Gender
and
Energy
Regarding
women
and
children,
the
Poverty
Assessment
has
gathered
the
following
findings,
which
can
help
inform
the
design
of
gender-‐sensitive
SREP
interventions:
Economic
Empowerment.
Women
and
girls
are
particularly
vulnerable
because
they
often
face
obstacles
to
the
accumulation
and
use
of
their
assets,
particularly
their
human
capital.
Despite
sizable
progress
in
education,
adult
women
are
still
less
well
educated
than
adult
men.
Women
in
the
Haitian
labour
market
are
significantly
less
likely
to
be
employed
and
earn
significantly
less
than
men.
Creating
economic
opportunities
for
women
is
one
of
the
important
measures
to
address
the
immediate
and
long-‐term
needs
of
women
and
girls.
Voice,
Participation
and
Agency.
Low
participation
in
the
public
sphere
are
widespread
in
Haiti.
As
an
example,
in
the
49th
Lesgilature
from
2010
to
2014,
only
4%
of
all
parliamentary
seats
were
occupied
by
women,
placing
Haiti
136th
of
142
countries,
and
well
below
the
regional
average
of
26%.
At
the
national
level,
as
of
April
2014,
8
of
23
ministers
(a
ratio
higher
than
30%),
and
3
of
20
secretaries
of
state
were
women.
At
the
local
level,
women
account
for
only
12%
of
all
mayors.
Gender
related
activities
in
Haiti
The
Government
has
taken
steps
to
expand
women’s
representation.
One
important
step
is
the
creation
of
the
Gender
Equality
Office
in
Parliament
and
amendment
of
the
Constitution
to
stipulate
a
quota
of
at
least
30%
women
in
all
public
offices.
But
there
is
no
enforcement
mechanism
yet,
and
as
such
implementation
remains
low
at
all
levels
of
formal
political
life.
In
order
to
support
the
Government’s
efforts
towards
strengthening
women
in
society,
various
governmental
and
non-‐governmental
stakeholders
have
launched
gender
initiatives.
In
the
energy
sector,
the
Gender
and
Energy
Interagency
Commission
was
created
in
August
2014.
The
Commission
was
established
by
the
Bureau
of
the
Minister
Delegate
to
the
Prime
Minister
in
charge
of
Energy
Security,
the
Bureau
of
Mines
and
Energy
and
Electricity
of
Haiti
with
support
of
Latin
American
Energy
Organization
(OLADE).
This
commission,
now
operating
under
leadership
of
the
Bureau
of
Mines
and
Energy,
aims
at
promoting
gender
equality
in
the
field
of
energy
for
sustainable
development.
It
intends
to
build
alliances
across
the
country's
institutions
to
coordinate
efforts
and
ensure
the
implementation
of
the
desired
changes
in
the
context
of
gender
equality
in
all
of
them.
It
also
regroups
representatives
of
the
Ministry
of
Economy
and
Finance,
the
Ministry
of
Women's
Affairs
and
Women’s
rights
(MCFDF),
and
the
State
University
of
Haiti.
OLADE
is
currently
supporting
capacity
building
to
provide
the
members
of
the
commission
with
proper
training
and
expertise.
The
Commission
plans
a
Workshop
on
Gender
and
Energy
on
April
21
and
22,
2015,
enabling
Haitian
women
to
gain
a
better
understanding
of
renewable
energy
and
the
importance
of
community
work
in
rural
secluded
areas.
20
On
the
ground
level,
several
initiatives
demonstrate
that
integrating
women
in
the
supply
chain
can
not
only
enhance
women’s
livelihood
but
can
also
improve
the
off-‐grid
energy
business
and
its
sustainability.
For
example,
MicamaSoley
works
closely
with
Haiti’s
largest
micro-‐finance
institution
FONKOZE
to
distribute
its
solar
products
through
women
groups
(Box
2).
BOX
2.
HAITI
SAFICO/MICAMASOLEY
SAFICO
is
a
Haitian
manufacturing
and
trading
company
that
has
existed
for
more
than
60
years.
In
2009,
SAFICO
created
a
"social"
division,
MicamaSoley,
offering
products
that
improve
the
lives
of
Haitians
in
rural
Haiti,
such
as
solar-‐powered
lights,
cell
phone
chargers
and
water
filters.
In
its
approach,
MicamaSoley
leverages
existing
distribution
networks
through
a
Partnership
with
Fonkoze,
Haiti’s
largest
microfinance
institution,
and
the
NGO
CARE.
SAFICO/MicamaSoley
has
sold
successfully
more
than
54,000
solar
lamps
and
systems
mainly
through
women
and
women
groups.
Fonkoze
serves
approximately
60,000
poor
and
ultra-‐poor
women
in
rural
Haiti,
with
46
branches
located
throughout
the
country.22
These
female
credit
customers
who
are
principally
market
women
are
organized
in
about
2,000
Credit
Centers.
Each
Credit
Center
elects
a
female
Chief
to
act
as
liaison
with
Fonkoze
and
to
oversee
the
customers
who
in
turn
oversee
a
group
of
10ish
women
which
are
all
receiving
micro
loans.
The
hierarchical
structure
helps
to
keep
on
track
with
repayments,
offer
peer
support,
etc.
In
order
to
receive
a
loan,
every
woman
goes
through
an
extensive
training
and
education
program.
MicamaSoley’s
distribution
model
through
Fonkoze
targets
these
Chiefs
who
are
introduced
to
different
products
and
who
receive
one
solar
lamp
to
take
home
and
try
out
with
no
obligation.
Few
weeks
later,
Chiefs
can
either
purchase
the
lamps
or
give
them
back.
Those
who
purchase
can
then
go
on
to
purchase
more
lamps
at
wholesale
to
sell
at
retail
price
to
members
of
their
Credit
Centers
or
to
the
general
public.
MicamaSoley
returns
to
each
of
the
branches
every
5–6
weeks
to
keep
the
women
supplied.
Since
2009
and
through
this
channel,
MicamaSoley
has
recruited
and
trained
over
1,200
Fonkoze
Credit
Center
Chiefs
and
has
sold
over
50,000
solar
lamps.
MicamSoley’s
second
distribution
network
was
developed
with
the
NGO
CARE,
through
a
program,
directed
at
helping
women,
called
the
Village
Savings
and
Loan
Associations
(VSLAs).
VSLAs
are
based
on
traditional
savings
methods
existing
around
the
world
under
various
names;
sol
(in
Haiti),
susu,
tandas,
hui,
etc.
With
support
from
CARE,
VSLAs
(20
to
30
women)
meet
weekly
and
save
small
amounts
of
money
each
week
which
are
then
made
available
to
members
as
loans
on
an
as-‐needed
basis
plus
interest.
Once
a
year
all
of
the
savings
and
accumulated
interest
are
distributed
amongst
the
members
of
the
VSLA.
When
CARE
identifies
a
natural
leader
in
a
VSLA,
they
offer
training
to
become
a
Village
Agent
(VA)
to
help
form
other
VSLAs.
About
90%
of
the
Vas
are
women.
The
collaboration
with
MicamaSoley
has
helped
the
VAs
to
become
financially
independent
of
CARE
–
by
training
and
supplying
them
to
be
resellers
of
solar
lamps.
The
idea
is
primarily
to
sell
the
lamps
to
the
approximately
500
VSLAs
that
have
been
formed
so
far
but
also
the
general
public
in
order
to
help
them
earn
additional
income
to
continue
in
their
role
as
VA.
In
total,
MicamaSoley
has
trained
over
100
VAs
and
sold
over
4,000
solar
lamps
through
this
channel.
22
Fonkoze
was
founded
in
1994/1995.
Its
name
is
an
acronym
for
the
Haitian
Creole
phrase
“Fondasyon
Kole
Zepòl”
meaning
“Shoulder-‐to-‐Shoulder
Foundation.”
https://www.youtube.com/watch?v=tq8uSiP6_lQ.
21
SREP
will
benefit
from
these
lessons
learned
and
will
work
closely
with
the
Gender
and
Energy
Interagency
Commission
to
mainstream
gender
considerations
in
individual
project
interventions.
The
renewable
energy
capacity
building
platform
developed
under
SREP
can
become
an
important
tool
for
closing
the
opportunity
gap
between
men
and
women
in
Haiti.
1.8
INSTITUTIONAL
FRAMEWORK
The
Ministry
of
Public
Works,
Transport
and
Communications
(MTPTC)
is
the
lead
Government
agency
for
the
energy
sector
in
Haiti.
Official
oversight
of
energy
access
activities
is
being
handled
by
the
offices
of
the
MTPTC
through
the
Energy
Cell,
created
in
late
2012.
The
Bureau
of
Mines
in
Energy,
established
in
1986,
operates
under
the
supervision
of
MTPTC.
Its
mission
is
to
promote
research
and
efficient
exploitation
and
use
of
the
country’s
mineral
and
energy
resources.
Electricity
of
Haiti
(EDH),
the
State
owned
corporation,
is
the
country’s
utility
company
primarily
responsible
for
the
electric
power
generation,
transmission,
and
retail
distribution.
There
is
no
regulatory
agency.
EDH
is
being
overseen
by
MTPTC
and
the
Ministry
of
Economy
and
Finance
(MEF),
which
provides
subsidies
to
cover
EDH
losses.
Other
Government
ministries
and
agencies
involved
in
the
energy
sector
include:
•
The
Ministry
of
Environment
(MDE),
mainly
responsible
for
environmental
protection.
As
a
transversal
institution,
it
also
can
play
a
key
role
in
promoting
sustainable
energy
through,
inter
alia,
the
reduction
of
charcoal
consumption,
an
increase
in
household
energy
with
improved
cook
stoves,
the
diversification
of
energy
resources
towards
renewable
energy
and
an
increase
in
rural
energy
access.
•
The
Ministry
of
Commerce
and
Industry
(MCI),
responsible
for
developing
businesses
within
the
country
in
order
to
improve
job
opportunities.
This
ministry
is
also
aware
of
energy
needs
and
has
been
involved
in
creation
of
energy-‐related
laws,
as
for
example
the
LPG
law
that
will
help
improve
household
energy
for
cooking.
This
ministry
is
also
involved
in
the
franchising
zone,
in
which
electricity
is
required
for
most
of
those
industries.
•
The
Ministry
of
Economy
and
Finance
(MEF),
responsible
for
budget
support.
This
Ministry
oversees
budgets
of
the
other
government
ministries,
agencies
and
EDH
and
has
the
responsibility
to
supervise
the
other
ministries
on
the
agreements
signed
between
Haiti
and
the
development
partners.
22
•
Interministerial
Committee
for
Regional
Development
(CIAT),
which
is
the
committee
for
territorial
development
and
is
chaired
by
the
Prime
Minister.
The
committee’s
mission
is
to
define
government
policy
on
land
use,
protection
and
watershed
management,
water
management,
sanitation,
planning
and
equipment.
•
Center
for
Facilitation
of
Investments
(Centre
de
Facilitation
d’Investissement,
CFI)
created
in
2007
in
order
to
streamline
the
investment
process
by
simplifying
bureaucratic
procedures
and
providing
a
range
of
economic
and
commercial
information
to
potential
investors,
Government
is
currently
devising
a
plan
for
a
new
institutional
structure
for
the
electricity
sector,
in
line
with
a
broader
reform
agenda
described
in
Section
1.5.
1.9
ROLE
OF
THE
PRIVATE
SECTOR
The
private
sector
has
become
a
key
contributor
to
economic
growth
in
numerous
sectors.
Haiti’s
private
sector
consists
mainly
of
small
and
medium
enterprises.
There
are
around
900,000
micro,
small
and
medium-‐sized
enterprises,
60,000
of
which
are
SMEs—small
firms
(with
between
10
and
49
employees),
and
mid-‐size
companies
(with
50-‐250
staff).
The
private
sector
is
dominated
by
the
manufacturing
sector
(particularly
the
textile
and
garment
industries)
and
the
agricultural
sector.
The
energy
sector
has
traditionally
been
demonitated
by
the
state-‐owned
EDH.
As
of
recently,
however,
there
has
been
an
increasing
activity
of
the
private
sector
–
both
as
operators
and
financiers.
As
part
of
SREP
preparation,
IDB
is
currently
carrying
out
an
in-‐
depth
supply
chain
assessment,
which
has
identified
about
30
local
firms
active
in
the
solar
supply
chain,
and
about
10
genset
suppliers.
1.9.1
INDEPENDENT
POWER
PRODUCERS
Although
EDH
has
its
own
generation
park
and
technically
holds
a
monopoly
over
the
country’s
electricity
system,
most
power
is
currently
produced
by
independent
power
producers
(IPPs),
including
Sogener,
E-‐Power,
and
HaytracIn
total,
IPP
provide
130
MW
operating
capacity
of
which
about
100MW
for
the
metropolitan
area.
All
IPPs
produce
power
from
thermal
sources
(diesel
and
heavy
fuel),
with
a
Power
Purchase
Agreement
(PPA)
with
EDH.
The
private
sector
has
also
been
exploring
opportunities
for
grid-‐
connected
renewable
energy
(mostly
solar
and
wind),
with
several
developers
discussing
potential
projects
with
the
Government,
but
so
far
no
PPA
for
renewable
energy
has
been
signed
as
potential
RE
IPPs
are
constrained
by
the
PPA
payment
capacity
of
EDH
(and
the
Government
in
case
of
an
attached
sovereign
guarantee),
which
is
a
result
of
EDH’s
high
technical
and
commercial
losses
and
low
payment-‐collection
efficiency
(See
Section
2.2
on
the
key
barriers).
23
1.9.2
RE
DISTRIBUTED
GENERATION,
INCLUDING
PRIVATE
SECTOR,
COOPERATIVES
AND
NON-‐
GOVERNMENTAL
ORGANIZATIONS
(NGOS)
Considering
the
current
limitations
of
the
grid-‐connected
renewable
energy
opportunities,
most
of
the
renewable
energy
activities
have
concentrated
on
off-‐grid
market.
In
principle,
off-‐grid
market
consists
of
two
types
of
customers:
(i)
business
and
industrial
customers
–
particularly
in
urban
areas
–
that
intentionally
decided
to
isolate
themselves
from
the
EDH
grid
(due
to
reliability
issues)
and
self-‐generate;
and
(ii)
households,
businesses
and
institutions
in
unelectrified
areas
–
mostly
in
rural
towns
and
villages.
Consequently,
an
industry
has
developed
for
both
streams:
There
are
several
companies
that
offer
solar
PV
alternatives
to
businesses
to
displace
or
complement
their
diesel
generation,
but
the
installed
PV
rooftop
capacity
is
still
very
small
(estimated
below
4Wp).
In
addition,
a
number
of
private
companies,
NGOs
and
the
first
rural
energy
cooperative
(established
by
NRECA
in
2014)
provide
off-‐grid
electricity
services
in
rural
areas
–
through
village
grids
or
individual
systems.
See
Annex
4
for
the
description
of
innovative
Haiti-‐grown
business
models
to
serve
the
base
of
the
pyramid
consumers.
Furthermore,
Several
local
companies
also
specialize
on
supplying
and
in
one
case
manufacturing
street
lights.
In
total,
27
companies
involved
in
Haiti
solar
business
approaches,
and
10
companies
active
ingenset
supply
have
been
identified
and
analyzed
as
part
of
a
supply
chain
analysis.
Several
private
sector
players
have
recently
initiated
the
creation
of
Haiti’s
first
Renewable
Energy
Association,
which
would
allow
the
private
renewable
energy
sector
to
speak
with
one
voice.
Private
sector
interests
and
current
initiatives
in
renewable
energy
sector
will
be
reinforced
with
the
support
of
SREP
and
will
be
fundamental
in
meeting
SREP
results.
1.9.3
FINANCIERS
Haiti’s financial system includes a banking sector with eight commercial banks,23 more than 220
credit cooperatives, and 21 Microfinance Institutions (MFIs). Branches from the commercial
banks are highly concentrated in the greater Port-au-Prince region; more than two thirds of all
commercial bank branches are located in Port-au-Prince metropolitan area and, of the eight
commercial banks, only five have operations outside the city. Rural areas are mostly served by
credit cooperatives. About 90% of
the
existing
credit
cooperatives
operate
in
rural
areas.
Microfinance
fills
the
gap
left
by
credit
cooperatives
and
commercial
banks.
However,
as
of
March
2008,
there
were
approximately
150,000
borrowers
from
MFIs,
three
times
the
number
of
borrowers
in
the
commercial
banking
sector.
The
average
loan
size
outstanding
23
Banque
Nationale
de
Crédit,
Banque
Populaire
Haitienne,
Banque
de
l’Union
Haitienne
S.A.,
Capital
Bank
S.A.,
Citibank
N.A.
Haiti,
The
Bank
of
Nove
Scotia,
Société
Générale
Haitienne
de
Banque
S.A.
and
Unibank
S.A.
24
for
the
entire
micro-‐finance
sector
was
US$540
and
less
(source:
case
study
on
Haitian
Microfinance
Industry,
2008).
Commercial
funding
for
renewable
energy
is
still
rare
in
Haiti.
A
Clean
Technology
Fund
(CTF)
funded
project
is
currently
under
preparation
for
Haiti,
which
intends
to
establish
a
‘Renewable
Energy
Financing
Facility’
to
be
managed
by
a
competitively
selected
financial
intermediary
(FI).
The
CTF
project
design
envisages
a
credit
line
to
private
sector
providers
of
renewable
energy
services
and
products
(including
NGOs,
cooperatives,
rural
retailers
and
MFIs)
for
the
investment
in
off-‐grid
renewable
energy
projects.
The
CTF
project
is
expected
to
build
a
robust
energy
project
pipeline
and
further
increase
interest
and
capacity
of
Haitian’s
financing
institutions
(see
Annex
5
for
further
CTF
project
details).
25
2
RENEWABLE
ENERGY
SECTOR
CONTEXT
2.1
RENEWABLES
IN
HAITI’S
ENERGY
SECTOR
Haiti
will
need
about
TBD
MW
of
new
generation
capacity
by
the
year
2020.
This
means
expanding
their
existing
available
capacity
five-‐fold.
A
recent
World
Bank
report24
shows
that
in
order
to
expand
electricity
supply,
Haiti
needs
to
diversify
its
power
sources,
and
moving
away
from
the
expensive
use
of
diesel
and
fuel
oil.
EDH
is
currently
developing
a
new
Electricity
Master
Plan,
and
it
is
expected
that
renewable
energy
will
feature
prominently
in
the
least-‐cost
expansion
path.
Needless
to
say,
greater
use
of
renewable
energy
would
also
help
Haiti
to
set
energy
sector
on
a
lower-‐carbon
path.
Haiti
has
excellent
renewable
energy
potential,
including
hydro,
wind,
solar
and
biomass,
which
is
largely
untapped,
as
confirmed
by
a
variety
of
recent
and
ongoing
studies.
The
following
sections
summarize
this
situation
for
each
of
the
main
RE
resources.
FIGURE
5.
A
BIRDS-‐EYE
VIEW
OF
HAITI’S
RE
POTENTIAL
Source:
SREP
Task
Force
Despite
the
ubundance
of
reneable
energy
resources,
the
progress
on
harnessing
them
has
been
slow.
Large
hydropower
(if
considered
RE)
makes
up
the
greatest
share
of
RE
power
production
currently
in
Haiti,
whereas
micro-‐
and
mini-‐hydropower
remains
largely
unexplored.
Some
biomass-‐powered
projects
are
being
developed
but
are
not
yet
completed.
Wind
energy
has
not
been
exploited
yet
(except
a
1978
pilot
project
in
Port-‐de-‐
Paix,
which
is,
however,
no
longer
operational
–
Project
Brief
2),
and
solar
energy
has
been
exploited
only
on
small
scale,
by
way
of
solar
lanterns
and
as
a
self-‐supply
option
for
businesses
to
displace
diesel
and
for
rural
off-‐grid
electrification.
24
EDH,
1976
and
Soleo,
2012
26
2.1.1
HYDROPOWER
The
overall
hydropower
potential
for
Haiti
is
estimated
at
over
200MW
(across
all
hydro
segments)
The
currently
installed
hydropower
capacity
is
slightly
over
60
MW.
There
are
seven
operational
hydropower
sites;
the
largest
hydropower
site
is
Péligre
with
an
installed
capacity
of
54
MW
(currently
undergoing
rehabilitation).
In
addition,
EDH
currently
owns
six
mini
&
small
hydro
plants
(under
2.5MW
each),
amounting
to
a
total
capacity
of
7.5
MW,
but
only
five
of
them
are
operational
and
with
constrained
ouput
due
to
a
need
for
urgent
repairs
and
rehabilitation.
Figure
6
shows
Haiti’s
hydroelectric
power
production
by
year
from
1980
to
2006;
Figure
7
(next
page)
illustrates
the
strong
seasonal
variability.
FIGURE
6.
HAITI
HYDROELECTRIC
POWER
PRODUCTION
BY
YEAR
Source:
http://www.eia.gov
via
http://www.indexmundi.com/energy.aspx?country=ht&product=hydro&graph=production
It
is
estimated
that
the
potential
for
medium-‐sized
hydropower
is
about
130
MW
(three
sites).
This
includes
a
32
MW
Hydro
Electric
Dam
upstream
of
the
existing
Péligre
dam
in
the
Artibonite
Department,
which
is
under
discussion
for
development
with
Sinohydro
(China)
per
signed
agreement
of
February
2015.
Furthermore,
the
potential
for
small-‐hydro,
which
remains
largely
untapped,
is
estimated
at
more
than
100
MW.25
This
estimate
is
in
line
with
Worldwatch
Institute’s
2014
analysis,
shown
in
Table
4.
In
parallel,
EDH
has
compiled
a
list
of
potential
mini
hydro
sites
of
sizes
25
EDH,
1976
and
Soleo,
2012
27
from
0.1
to
2.6
MW,
with
falls
going
from
50
to
400
meters,
amounting
to
a
total
capacity
of
23
MW.
TABLE
4.
ESTIMATES
FOR
REMAINING
“ADDITIONAL”
PICO-‐TO-‐SMALL
HYDRO
POWER
POTENTIAL
IN
HAITI
BY
REGION
Source:
Worldwatch
(2014)
based
on
Soleo
(2011/2012)
FIGURE
7.
SEASONAL
VARIABILITY
OF
HYDRO
POWER
Source:
Worldwatch
(2014)
28
2.1.2
BIOMASS
Charcoal
and
firewood
are
the
main
source
of
thermal
energy
in
the
country
and
constitutes
more
than
70%
of
the
total
energy
supply
in
Haiti;
however
not
all
of
this
can
be
considered
renewable
as
it
contributes
to
ongoing
deforestation.
Biomass,
if
used
direct
for
electricity
production
could
generate
up
to
300
MW
of
power.
This
assumes
that
100%
of
the
currently
available
feedstock
is
converted
to
power.
The
majority
of
this
power
(81%)
is
from
wood
products,
while
the
remainder
is
from
sugarcane
(13%)
(Figure
8),
rice
(4%),
and
coconut
and
coffee
(less
than
1%
each).26
FIGURE
8.
HAITI
SUGARCASE
BIOMASS
POTENTIAL
Biomass
projects
in
Haiti
have
been
looking
into
using
feedstock
like
jatropha,
sugar
cane,
eucalyptus
and
oil
palm,
for
conversion
to
biofuels.
Based
on
the
current
level
of
production
for
the
biofuel
crops,
Haiti
may
be
able
to
generate
up
to
154
million
liters
of
ethanol.
This
assumes
that
100%
of
the
currently
available
feedstock
is
converted
to
ethanol.
The
majority
of
this
ethanol
is
from
sugar
(56%)
and
corn
(44%),
while
a
small
amount
(less
than
1%)
comes
from
sorghum.26
In
addition
to
ethanol,
Haiti
may
also
be
able
to
generate
up
to
30
million
liters
of
bio-‐
diesel.
This
estimate
assumes
that
100%
of
the
currently
available
feedstock
is
converted
to
bio-‐diesel.
Almost
all
of
this
bio-‐diesel
is
from
coconut
(70%),
with
the
remainder
from
sesame
(27%)
and
cottonseed
(3%).26
Jatropha
is
also
receiving
much
attention
in
terms
of
a
potential
biofuel
for
Haiti;
however,
more
studies
are
needed
to
validate
the
potential
investment
returns.27
26
UNEP,
2006.
Report:
Background
Data
Collection
on
Bio-‐energy
in
the
Caribbean
and
Central
America
27
Winrock
International,
2008.
Presentation:
Diversifying
the
Energy
Matrix:
The
Role
&
Opportunities
for
Biofuels
29
2.1.3
WIND
Currently,
there
is
no
grid-‐connected
wind
generator
operational
in
Haiti;
however,
wind
is
considered
among
the
country’s
promising
renewable
resources,
with
a
potential
estimated
capacity
of
at
least
70-‐80
MW.28
Apart
from
publicly
available
wind
potential
maps
(e.g.
IRENA
–
Figure
below),
site
specific
speed
measurements
and
feasibility
studies
for
projects
of
significant
sizes
(10
MW
and
above)
are
under
way
by
individual
project
promoters
and
investors.
The
final
results
of
these
studies
will
be
known
towards
the
end
of
2015.
The
involvement
of
multiple
local
and
international
investors
in
specific
wind
projects
as
such
gives
an
indication
of
the
market
readiness
on
supply
side.
The
Government,
with
support
of
the
EU,
has
also
conducted
a
study
at
three
sites;
the
results
are
publicly
available
at
BME
and
MTPTC
websites.
29
FIGURE
9.
MAP
OF
WIND
POTENTIAL
IN
HAITI
Source:
IRENA
Global
Atlas.
3Tier
wind
layer.
Public
at
http://irena.masdar.ac.ae/
As
illustrated
by
the
publicly
available
wind
speed
map
above,
particularly
promising
areas
for
wind
sites
in
Haiti
include,
amongst
others
(see
Worldwatch
2014
for
other
potentially
interesting
sites):
•
The
central
wind
corridor
crossing
the
Lac
Azueï
in
the
Western
Department
north-‐
east
of
Port-‐au-‐Prince
–
in
Plaine
du
Cul
de
Sac
between
two
big
mountain
chains
28
This
is
the
installed
potential
according
to
the
study
developed
by
the
Belgium
Company
3E
in
2010.
Potential
were
estimated
for
three
sites
of
Haiti:
Cap
Haïtien,
Jacmel
and
Lac
Azuei.
29
www.bme.gouv.ht
30
named
La
Selle
and
Chaine
des
Matheux
(wind
speed
estimates
vary
considerably
for
this
area,
so
actual
measurements
at
appropriate
heights
are
needed).
•
The
northern
wind
corridor
in
the
North-‐West
Department,
near
the
island
of
La
Tortue,
which
is
part
of
the
larger
“canal
du
vent”
between
Haiti
and
Cuba
(estimated
at
6-‐9
m/s).30
As
wind
energy
is
highly
volatile,
detailed
measurement
at
appropriate
heights
(ideally
80-‐
100m)
is
needed
not
only
for
actual
project
siting
and
design
–
but
also
to
gauge
the
diurnal
patterns
(available
estimates
vary)
as
this
will
have
a
direct
impact
on
the
actual
benefits
(in
terms
of
fuel
savings)
and
dispatchability
of
the
injected
wind
power.
FIGURE
10.
ILLUSTRATION
OF
TYPICAL
DIURNAL
WIND
ENERGY
PROFILE
WITH
X=HOUR
OF
DAY
AND
Y=
AVERAGE
WIND
ENERGY
(MORE
PRONOUNCED
THAN
WIND
SPEED
VARIABILITY,
DUE
TO
CUBIC
RELATION
Source:
Meteonorm/iiDevelopment
(2015)
30
In
1978,
a
wind
farm
of
150
kW
was
installed
by
EDH
in
Port-‐de-‐Paix,
with
support
of
the
German
development
cooperation.
The
plant
is
no
longer
in
operation
since
1991
due
to
a
lack
of
technological
skill
and
capacity
for
maintenance.
31
2.1.4
SOLAR
Haiti
has
an
excellent
solar
energy
resource
(Figure
11),
with
high-‐level
irradiation
across
all
Departments
and
months
of
the
year.
This
potential
as
of
yet
remains
largely
untapped,
regarding
both
solar
PV
(for
electricity)
and
solar
thermal
uses
(for
water
heating
and
small
productive
applications).
Currently,
there
is
no
relevant
grid-‐connected
solar
PV
generation
in
Haiti.
However,
the
country
has
gained
significant
experience
recently
related
to
the
deployment
of
off-‐grid
solar
PV
in
two
distinct,
nascent
market
segments:
(i)
PV
companies
start
serving
the
urban
business
market
(that
is,
commercial
and
industrial
users
who
are
currently
(partially
or
fully)
self-‐supplying
in
light
of
the
grid
unreliability,
and
now
wish
to
complement
current
expensive
diesel
generation
with
PV
as
a
co-‐generation
“fuel
saver”)
via
an
emerging
leasing
model
(PV
companies
providing
long-‐
term
lease
of
the
PV
equipment,
for
which
users
pay
a
fee),
with
typical
PV
capacity
per
site
ranging
from
tens
of
kWp
up
to
MWp
scale
(e.g.
1
MWp
of
solar
power
for
Mariott);
and
(ii)
PV
companies
serving
off-‐grid
markets
(see
Chapter
1.6
Rural
Electrification
Challenge)
via
PicoPV
systems,
solar
PV
for
schools,
and
solar
streetlights
(combined
installed
capacity
of
about
0.7
MW,
albeit
of
mixed
quality).
There
are
also
PV
systems
for
schools
and
clinics
–
the
largest
is
Mirebalais
Hospital,
which
operates
a
400
kW
system.
Many
of
these
off-‐grid
solar
PV
companies
have
stated
an
interest
in
the
on-‐grid
PV
market
if
enabling
conditions
are
generated,
especially
for
the
distributed
SME-‐level
“fuel
saver”
market
segment
above.
One
of
the
local
companies
is
designing
and
manufacturing
its
own
solar
PV
systems.
Due
to
the
spatial
stability
of
PV
irradiation,
the
relative
abundance
of
possible
PV
installation
sites
compared
to
total
national
demand,
and
the
scalability
from
Wp
to
MWp,
the
technical
PV
potential
is
virtually
unlimited.
The
economically
viable
PV
potential
keeps
increasing
due
to
rapidly
falling
Capex
(see
chapters
on
economic
analysis),
so
that
the
benefits
of
deferting
investment
need
to
be
weighed
against
forgone
savings.
However,
PV
is
already
least
cost
in
2015
for
most
offgrid
users
on
econmic
terms
(but
not
necessarily
on
financial
terms,
as
high
risk
premiums
result
in
extreme
discount
rates),
and
below
Port-‐au-‐Prience
benchmark
thermal
LCOE
(again,
only
on
economic
terms).
The
practical
PV
potential
has
been
previously
estimated
at
around
200
MWp
in
urban
areas
and
over
1,600
MWp
throughout
the
country.31
31http://www.caricom.org/jsp/community_organs/energy_programme/electricity_gifs_strategy_final_report
_summary.pdf
32
FIGURE
11.
SOLAR
ENERGY
RESOURCE
MAP
OF
HAITI
Source:
GOH/3Tier
2.2
BARRIERS
TO
RENEWABLE
ENERGY
DEVELOPMENT
AND
MITIGATION
MEASURES
Transforming
Haiti’s
energy
sector
through
the
large-‐scale
deployment
of
renewable
energy
faces
numerous
institutional,
regulatory,
and
legal
challenges,
as
well
as
information,
knowledge
and
capacity
constraints
and
economic
and
financial
uncertainties.
The
key
barriers
and
mitigation
measures
cited
below
were
identified
through
consultations
with
relevant
stakeholders
(see
Annex
3).
SREP
will
help
unlock
individual
barriers
through
“learning
by
doing”
and
related
demonstration
effects.
Instead
of
putting
all
resources
into
one
large
project,
SREP
will
finance
several
smaller
projects
that
will
help
test
possible
regulatory
and
risk
mitigation
approaches
and
build
confidence
and
capacities
of
both
private
sector
and
government
for
a
scale
up
in
the
future.
We
consider
this
the
optimal
approach
(in
terms
of
total
SREP
effect)
in
a
country
where
many
potentially
viable
RE
market
segments
are
at
a
very
early
stage
due
to
market
inefficiencies.
33
TABLE
5.
MAIN
BARRIERS
AND
CONSTRAINTS
TO
RENEWABLE
ENERGY
DEVELOPMENT
Main
barrier
and
Constraint
Weak
financial
situation
of
EDH.
EDH
currently
recovers
only
about
22%
of
the
value
of
power
it
supplies
due
to
high
technical
and
commercial
losses.
The
current
EDH
financial
situation
poses
significant
risks
for
private
investors,
even
if
the
PPAs
can
be
backed
by
Government
guarantees.
Mitigation
Measure
To
improve
the
financial
situation
of
EDH,
the
Government
will
focus
on
reducing
EDH
losses
and
reduce
costs
of
power
supply.
The
reduction
of
EDH
losses
will
be
achieved
by
targeting
investments
in
rehabilitation
of
existing
transmission
and
distribution
lines
under
the
supervision
of
the
World
Bank,
and
a
set
of
measures
to
improve
commercial
performance,
starting
with
an
improved
collection
system
and
improved
metering.
Section
1.6
describes
in
more
detail
the
Government
loss
reduction
plan
(back
by
IMF).
The
diversification
of
EDH
power
supply
options
will
lower
its
dependency
on
expensive
fossil-‐fuel
generation
provided
by
IPPs.
Diversification
options
include
the
installation
of
additional
power
generation
capacity
based
on
renewable
energy
sources,
rehabilitation
of
existing
hydro
plants
(e.g.,
Péligre
already
in
process,
additional
plants
included
in
the
present
IP),
and
possibly
power
generation
from
imported
LNG.
In
addition,
the
SREP
project
will
develop
approaches
suitable
for
this
EDH
transitional
period.
Grid
connected
renewables
will
be
developed
as
public-‐private
partnerships,
with
SREP
mitigating
the
risk
of
the
private
sector
–
both
through
direct
investments
and/or
as
guarantees/risk
mitigation
instruments.
The
resulting
renewable
energy
generation
will
be
provided
at
much
lower
costs
than
the
current
costs
of
EDH
generation
(including
IPPs),
and
will
therefore
be
a
part
of
a
loss
reduction
strategy.
However,
demonstrated
progress
on
addressing
the
EDH
financial
situation
will
be
one
of
the
requirements
for
the
PPP
investments
to
proceed.
34
Concerns
about
integration
of
intermittent
generation
capacity.
There
are
concerns
from
the
Government/EDH
on
the
integration
of
large
intermittent
generation
into
an
already
very
unreliable
grid
without
causing
additional
reliability
and
quality
issues.
Transmission
line
capacities
are
constrained
and
it
is
unclear
yet
what
spare
capacity
will
be
available
once
the
full
Péligre
capacity
will
be
on
line.
Dispatch
is
far
from
optimal
in
light
of
the
severe
generation
shortage.
A
study
is
currently
ongoing
to
evaluate
the
capacity
of
EDH’s
grid
and
dispatch
strategies
for
the
integration
of
intermittent
renewable
energy.
The
study
will
provide
information
on
the
maximum
capacity
of
wind
and
solar
PV
that
the
grid
can
safely
absorb,
on
site
restrictions
and
on
additional
network
upgrades
that
may
be
needed.
To
mitigate
this
risk,
all
SREP
investments
in
grid-‐connected
renewables
will
remain
well
on
the
“safe”,
conservative
side,
starting
with
smaller
investments
in
wind,
biomass
and/or
solar
power,
while
exploring
the
impacts
on
the
grid
and
adjusting
approaches/identifying
complementary
investments
to
prepare
a
larger
injection
of
renewable
energy
to
the
grid
in
the
future.
This
will
not
only
address
the
perceived
risk,
but
in
addition
allows
to
maximize
total
net
benefits
from
RE
growth.
Lack
of
clarity
on
legal
and
regulatory
framework.
There
is
no
legal/regulatory
framework
for
grid-‐connected
renewables,
such
as
feed-‐in
tariffs
(and
rights)
or
similar
certainty
on
tariff
level;
no
standard
PPA;
no
regulatory
agency
to
provide
regulatory
protection
to
investors
etc.
SREP
will
help
Government
develop
appropriate
regulatory
instruments
to
support
both
grid-‐connected
and
off-‐grid
renewables.
This
will
be
done
through
the
“Building
enabling
framework,
capacity
and
skills
for
RE
scale-‐up
project”
(Project
Brief
5),
as
well
as
through
the
application,
testing
and
fine-‐tuning
the
regulatory
instruments
in
individual
SREP-‐
supported
investment
projects
(Project
Brief
1-‐4).
For
off-‐grid
renewables,
the
legal
and
regulatory
framework
is
not
transparent
either,
which
discourages
private
investments.
The
relationships
and
hierarchy
among
different
legislations
is
unclear
and
affects
in
particular
potential
mini-‐grid
investors
who
are
reluctant
to
invest
in
stranded
RE
assets
that
could
be
expropriated
or
lose
value.
There
is
no
clarity
on
whether
mini-‐
grid
operators
are
free
to
set
tariffs
or
whether
they
will
be
subject
to
any
Government
tariff
or
quality
of
service
regulation.
Finally,
there
are
no
provisions
of
what
would
happen
with
assets
in
case
EDH
grid
arrives
to
the
village.
The
banking
community
also
highlighted
the
inability
to
take
roof
top
solar
PV
as
a
collateral
as
it
is
considered
as
a
fixing
and
becomes
part
of
the
building
and
collateral
of
the
building
financier
automatically
under
the
current
legislation.
This
35
makes
debt
financing
of
solar
PV
extremely
difficult
Lack
of
access
to
capital.
Access
to
capital
for
renewable
projects
remains
an
issue,
particularly
for
smaller
companies
engaging
in
off-‐grid
electrification.
Consequently,
projects
have
been
relying
mainly
on
donor
and
NGO
grants,
which
are
not
sufficient
for
scaling
up.
The
private
sector
requested
the
Government
and
the
donor
community
to
(1)
facilitate
soft
loans
for
developing
flagship
projects
on
rural
energy
in
Haiti,
(2)
provide
improved
access
to
commercial
loans,
and
(3)
encourage
less
risk-‐averse
capital
to
invest
in
rural
energy
projects.
SREP,
together
with
a
parallel
project
co-‐financed
by
the
Clean
Technology
Fund
(CTF),
will
address
the
financing
issues
by
mobilizing
a
mix
of
commercial
financing
and
subsidies,
progressively
targeting
involvement
of
local
financial
institutions
in
renewable
energy
lending.
Inadequate
fiscal
policy
for
renewables.
The
current
fiscal
policy
disadvantages
both
grid
and
off-‐grid
renewables
against
their
fossil
fuel
alternatives.
Renewable
energy
equipment
is
subject
to
both
import
duties
and
VAT
tax,
which
can
amount
to
over
30%
of
the
product
value.
The
negative
impact
on
the
relative
competitiveness
of
renewables
vis-‐à-‐vis
fossil
fuels
presents
an
additional
burden
on
the
poor.
SREP,
through
its
“Building
enabling
framework,
capacity
and
skills
for
RE
scale-‐up
project”
(Project
Brief
5)
will
work
with
the
Government
on
options
for
leveling
the
playing
field
between
renewables
and
fossil
fuels.
Information
and
capacity
constraints.
A
lack
of
in-‐depth
information
on
the
detailed
performance,
risk
determinants,
and
good
practice
of
technical
and
financial
engineering
is
one
of
the
main
drivers
for
the
extremely
high-‐risk
premiums
typical
for
nascent
RE
markets
(GIZ
2014b).
Participants
in
all
Haiti
SREP
consultations
agreed
that
information
gaps
exist
on
ongoing
projects,
markets,
resources,
administrative
processes,
potential
partners
and
financiers,
and
should
be
made
publicly
available.
As
for
the
capacity,
enhancing
renewable
energy
curricula
and
improving
hands-‐on
experience
in
the
field
of
RE
of
university
graduates,
as
well
as
the
creation
of
a
pool
of
skilled
technicians
would
be
an
important
step
strengthening
the
sustainability
of
rural
energy
projects,
and
to
allow
faster
scale-‐up
in
the
future
(the
limited
number
and
growth
of
skilled
Given
the
prominence
of
information
and
capacity
constraints
and
asymmetries
cutting
across
all
renewable
energy
segments,
SREP
will
include
a
specific
project
to
address
key
cross-‐cutting
capacities
and
skills,
as
well
as
enabling
environment
for
scaling-‐up
renewable
energy
in
Haiti.
See
Project
Brief
5.
For
off-‐grid
electrification,
targeted,
market-‐friendly,
results-‐
based
subsidies
will
be
considered
to
increase
affordability
of
the
off-‐grid
services
for
the
poor.
36
electricians
has
been
identified
as
a
major
bottleneck
to
the
market
growth
of
distributed
RE
generation
in
several
countries).
The
National
Electrification
Strategy,
which
also
ranked
high
in
consultations,
would
form
a
bridge
between
the
“information
gap
reduction
aspect”
of
this
section,
and
the
policy
/
enabling
framework
bullet
listed
above.
37
3
RENEWABLE
ENERGY
NATIONAL
PLANNING
AND
ECONOMIC
VIABILITY
As
discussed
in
section
1.5,
Haiti’s
main
planning
tool
is
the
National
Energy
Sector
Development
Plan
(PNDSE)
for
the
period
2007-‐2017.
However,
the
PNDSE
is
outdated
and
EDH
is
currently
developing
a
new
Electricity
Master
Plan,
which
should
be
available
by
late
2015.
The
PNDSE
recommends
an
additional
capacity
of
about
400MW,
including
10%
of
renewable
energy
capacity.
This
low
proportion
of
renewable
energy
integration
is
in
part
due
to
the
unavailability
of
appropriate
data
on
RE
at
that
time.
The
new
Electricity
Master
Plan,
informed
by
the
ongoing
study
on
integrating
intermittent
renewables
to
the
EDH
grid,
will
provide
new
recommendations
for
an
optimal
mix
of
renewable
energy
over
time,
which
is
expected
to
target
a
higher
share
of
RE.
At
a
higher
level,
Haiti’s
power
sector
planning
is
driven
by
the
general
development
needs
and
objectives
set
in
the
Strategic
Plan
for
the
Development
of
Haiti
(SPDH),
which
sets
the
path
for
Haiti
to
become
an
emerging
economy
by
2030,
and
will
be
a
key
reference
for
the
Electricity
Master
Plan.
Reaching
the
SPDH
goal
of
becoming
emerging
country
by
2030
will
require
dual
efforts:
(i)
improving
EDH
performance
and
supporting
on-‐grid
generation
capacity
to
enable
EDH
to
provide
reliable
and
affordable
electricity
services
in
urban
areas
and
surroundings;
and
(ii)
supporting
off-‐grid
electrification
efforts
for
households,
businesses
and
institutions
that
are
not
served
by
EDH.
The
Government
considers
SREP
an
important
strategic
tool
to
help
it
achieve
these
objectives.
Grid
connected
renewables
provide
an
important
alternative
to
Haiti’s
expensive
and
volatile
oil-‐based
generation.
They
provide
an
opportunity
to
address
EDH’s
financial
situation
both
directly
and
indirectly.
Directly,
because
on-‐grid
renewables
are
a
lower
cost
generation
option,
allowing
gradual
displacement
of
the
more
expensive
fossil
fuel
generation
(Haiti’s
thermal
generation
costs
are
very
high
by
international
standards,
as
Haiti’s
RE
Supply
Curve
in
the
next
section
illustrates).
Indirectly,
because
the
overall
increase
in
generation
capacity
by
way
of
added
renewables
(if
planned
and
implemented
correctly)
will
help
improve
service
quality
for
the
existing
customers
-‐
and
potentially
allow
the
connection
of
new
customers.
This
is
an
important
complement
to
the
reforms
being
carried
out
on
the
EDH
commercial
side
(aimed
at
increased
collections
and
reduced
theft),
which
will
be
easier
to
implement
if
customers
perceive
parallel
improvements
in
service
availability,
reliability
and
quality.
SREP—through
a
combination
of
targeted
investments
and
advisory
activities—can
help
Haiti
build
RE
experience,
adjust
and
introduce
regulatory
and
planning
instruments,
and
build
the
necessary
skills
needed
on
all
levels
(from
technicians
to
dispatch)
for
the
necessary
renewable
energy
scale
up.
38
The
Government
is
aware
that
even
if
power
sector
reform
and
EDH
loss
reduction
programs
are
successfully
implemented,
EDH
will
need
to
focus
first
on
improving
supply
in
urban
areas
and
(legally)
connect
those
households
which
are
in
the
vicinity
of
the
existing
grids.
Therefore,
it
will
take
years
before
EDH
will
be
able
to
start
expanding
deeper
into
rural
areas.
In
order
to
achieve
the
2030
universal
access
target,
it
is
thus
necessary
to
invest
in
parallel
off-‐grid
electrification
options.
Such
investments
are
also
strongly
encouraged
from
an
equity
perspective:
While
nationwide,
Haiti
made
progress
in
reducing
poverty
and
extreme
poverty,
progress
in
rural
areas
has
been
stagnant.
The
continued
influx
of
people
to
the
metropolitan
areas
is
not
sustainable.
Therefore,
Government
policies
continue
targeting
investments
and
job
creation
in
secondary
cities
and
tertiary
cities,
as
well
as
in
rural
areas,
underpinning
the
ongoing
decentralization
process.
Government
strongly
believes
that
SREP
can
play
a
supportive
role
in
increasing
access
to
decentralized
sources
of
renewable
energy,
particularly
in
isolated
rural
areas.
For
the
above
reasons,
the
Government
is
requesting
SREP
funds
for
a
balanced
program
that
will
help
it
reconcile
the
need
to
simultaneously
focus
on
(i)
strengthening
power
sector
capacity
to
support
economic
growth
and
(ii)
expanding
access
to
provide
economic
opportunities
and
improved
living
conditions
in
secondary/tertiary
towns
and
rural
areas.
3.1
GRID-‐CONNECTED
RENEWABLES
The
RE
Supply
curve
for
Haiti
is
shown
in
Figures
12
and
13
on
the
next
page.
It
should
be
noted
that
(i)
LCOE
are
for
the
low-‐case
WACC
typically
applied
for
SREP
IPs
(as
opposed
to
the
(much
higher)
actual
risk-‐adjusted
returns
early
stage
equity
and
debt
providers
would
require
when
investing
in
Haiti
RE
today
in
absence
of
the
SREP
IP
measures),
and
(ii)
the
capacity
credits
don’t
fully
reflect
all
of
the
specific
dispatch
challenges
EDH
will
face
when
integrating
wind
and/or
solar
>10
MWp
on
the
short
term.
Planning
the
scale-‐up
of
private
sector-‐led
on-‐grid
renewables
in
any
given
country
is
a
challenge,
because
appropriate
methods
and
instruments
have
started
to
emerge
only
recently.32
As
a
result,
renewables
are
sometimes
regionally
clustered
in
network
“hot
spots”
(where
they
are
needed
less
than
in
other
nodes
of
the
national
grid),
or
unfavourable
PPAs
lead
to
inefficiencies.
In
addition,
existing
tools
and
approaches
cannot
be
simply
transferred
from
pioneer
markets
(such
as
the
EC
or
US)
to
sunbelt
countries,
because
of
several
fundamental
differences
in
power
sector
boundary
conditions,33
most
of
which
apply
to
the
case
of
Haiti
and
matter
for
SREP
planning.
They
include
(i)
challenges
(such
as
weaker
grids
and
less
actual
spinning
reserve),
as
well
as
(ii)
advantages
(better
RE
resources
and
the
availability
of
hydro
storage
to
significantly
increase
the
direct
benefits
derived
from
thermal
fuel
32
GIZ
2013
&
2014a,
IEA
2014,
RMI
2014
33
WEC
2014
39
saved
by
wind/solar
injection).
Some
of
the
differences
(iii)
can
go
both
ways
-‐
for
instance,
fragile
grids
can
actually
be
stabilized
by
distributed
RE
injection
(if
it
is
planned
well);
and
power
sector
growth
not
only
poses
challenges
for
RE
dispatch,
but
at
the
same
time,
this
growth
can
reduce
the
opposition
by
incumbent
IPPs
and
utilities
to
RE
(once
they
understand
the
potential
of
RE
to
increase
their
revenues).
34
F
IGURE
12.
EDH
RE
SUPPLY
CURVE
Source:
iiDevelopment
(2015)
34
Due
to
the
typical
lead
time
it
takes
till
quantitative
RE
optimization
software
services
have
been
procured
and
implemented
with
solid
data
on
network
and
generation,
it
is
usually
best
to
start
with
a
pragmatic
mix
of
methods
and
planning
tools
(such
as
the
RE
Supply
Curve
and
score
cards
used
by
SREP),
and
add
more
advanced
planning
tools
on
the
way,
in
a
sequential
approach
(GIZ/ESMAP
2014).
40
FIGURE
13.
RE
GENERATION
COST
VS.
THERMAL
EDH
AND
COGEN
Source:
iiDevelopment
(2015)
SREP
will
support
the
Government’s
and
key
sector
players’
path
along
the
learning
curve
of
RE
planning
and
dispatch
by
applying
lessons
from
other
countries
as
they
emerge
and
optimizing
the
volume
of
on-‐grid
RE
interventions
over
time
and
space.
A
main
effect
of
SREP
on
the
local
RE
market
segments
will
be
to
improve
the
post-‐SREP
financial
costs
of
RE,
by
way
of
reducing
the
risk-‐reflecting
weighted
average
capital
costs
of
equity
and
debt
providers,
as
illustrated
in
GIZ
2014b
for
the
case
of
PV
in
Germany,
Brasil
and
Italy.
Annex
IV
provides
more
details
on
(i)
the
specific
Ongrid
RE
Cases
that
have
been
selected
for
Haiti
SREP
(SREP
Cases
#9-‐12
in
Chapter
4)
and
(ii)
the
issues
and
methods
that
have
been
considered
in
the
comparison
of
the
costs
and
benefits
of
RE
capacity
additions
over
time.
3.2
OFF-‐GRID
RENEWABLES
For
SREP
offgrid
RE
planning,
current
energy
supply
and
demand
in
areas
far
from
the
existing
main
grid
have
been
analyzed,35
and
possible
alternatives
for
different
offgrid
market
segments
have
been
defined.
Then,
the
most
promising
business
models
of
each
segment
have
been
analyzed
regarding
their
scalability
and
transformational
potential,
based
on
all
relevant
existing
offgrid
business
activities
in
Haiti
(including
NGOs
and
Coops),
comparing
them
to
international
success
stories
and
failures,
and
selecting
a
short
35
The
results
of
this
study
are
available
in
a
separate
background
document
on
Digicel/iiDevelopment
2014
energy
survey
analysis
with
1400
respondents)
and
in
an
additional
background
documents
on
the
detailed
analysis
of
the
costs
(by
way
of
cash-‐flow
analysis)
and
benefits
(by
way
of
consumer
surplus).
41
list
of
the
best
suited
“SREP
Cases”
for
in-‐depth
financial
and
economic
analysis
(a
short
list
of
eight
market
segments,
including
both
hybrid
village
grid
cases
and
stand-‐alone
users).
To
do
so,
the
economic
and
financial
analysis
looked
at
end
user
prices
at
which
existing
energy
demand
would
match
different
RE
offgrid
supply
options,
based
on
WTP
and
welfare
gains.
This
is
illustrated
in
the
map
and
graphs
below,
and
details
are
given
in
Appendix
1.
Figure
14
(below)
shows
the
results
of
the
SREP
WTP
surveys,
by
mapping
(i)
current
household
access
(to
grid
power
and
offgrid
solar)
to
(ii)
these
households’
present
monthly
expenditures
for
lighting,
phone
charging
etc.
FIGURE
14.
THE
SPATIAL
DISTRIBUTION
OF
SURVEY
RESPONDENTS
(DIGICEL
2014)36
Source:
digicel
&
iiDevelopment
2015
Figure
15
(next
page)
identifies
population
clusters
that
currently
are
more
than
2
km
away
from
the
grid,
and
could
represent
a
potential
for
village-‐based
supply
options,
such
as
mini-‐
and
micro-‐grids.
The
colored
ranges
(red
to
yellow
according
to
population
sizes)
in
this
SREP
preparation
map
by
(Navigant
et
al
2015)
correspond
to
the
number
of
“urban”
or
“village”
households
36
The
map
shows
survey
results
of
the
Dicicel/iiDevelopment
market
survey
for
(i)
grid
access
(heat
map:
red
=
grid
access);
(ii)
off-‐grid
solar
kits
or
lanterns
(yellow
spikes)
and
(iii)
their
current
substitutable
expenditures
(on
light,
phone
charging,
radio
dry
cells,
TV,
etc.
–
blue
spikes,
with
height
of
spike
=
monthly
expenditures).
42
in
urban
sections37
that
are
not
within
2
km
of
an
existing
electrical
asset
(generators,
LV
transmission,
substations).
38
The
goal
of
this
exercise
and
map
development
was
to
estimate
the
potential
of
greenfield
village
grid
systems
(as
opposed
to
village
grid
retrofits
and
stand-‐alone
systems)
that
would
make
sense
for
SREP
under
different
scenarios.
FIGURE
15.
SREP
ASSESSMENT
OF
THE
OFFGRID
VILLAGE
GRID
POTENTIAL
IN
HAITI
Source:
SREP
Task
Team
–
Navigant/IDB
(2015)
Taking
the
integral
of
the
unserved
urban
households
from
the
map
above
leads
to
an
estimate
of
about
65,000
“urban
village”
households
that
are
distant
from
known
electric
infrastructure.
Some
of
these
will
be
preferentially
served
by
stand-‐alone
systems
(SHS,
kits,
lanterns)
because
they
aren't
in
an
area
of
sufficient
density,
and/or
they
would
only
37
A
section
is
“urban”
if
it
has
any
urban
population
according
to
the
Haiti
Statistics
Bureau,
IHSI
38 38
This
is
only
a
rough
cut
due
to
the
early
planning
stage:
the
results
are
far
from
definitive
at
this
stage
and
will
be
refined
during
further
SREP
preparation.
In
addition,
private
sector
firms
will
eventually
be
enabled
to
build
their
own
estimates
for
market
potential
by
technology
and
area,
thanks
to
the
“Living
GIS”
and
webpage
the
SREP
IP
shall
provide
from
the
outset.
43
be
willing
to
pay
for
very
basic
electricity
services
for
which
such
stand-‐alone
systems
would
be
the
most
economic
solution
(possibly
combined
with
a
larger
solar-‐diesel
hybrid,
but
no
LV
grid,
for
any
anchor
client
in
the
same
small
village
who
need
AC
power
and/or
larger
peak
capacity).39
In
a
next
step,
the
effect
of
SREP
support
on
lifting
some
or
(i)
all
of
the
different
village
grid
market
segments
(SREP
cases
#
6-‐8)
and
stand-‐alone
segments
(SREP
cases
#
1-‐5)
up
to
a
higher
level
of
quality,
sales
and
sustainability
by
way
of
suitable
public
private
support
instruments;
and
of
(ii)
the
users
to
different
Tier
levels
was
assessed
as
per
Global
Tracking
Framework
2015.
Typical
cash-‐flows
and
pricing
strategies
of
different
Haiti
RE
off-‐grid
provider
models
for
the
relevant
segments
and
technologies
(pico
PV
and
small
solar
stand-‐alone
to
village
power
and
large
social
and
productive
users)
have
been
prepared
and
analyzed
regarding
their
potential
for
(i)
effect
and
subsidy
needs
till
2020,
and
(ii)
probable
market
development
post
2020
(after
SREP
exit)
to
gauge
the
transformative
effect
of
possible
SREP
interventions.
The
resulting
SREP
Offgrid
Cases
1-‐8
are
described
in
the
Annex.
39
As
an
example
for
using
this
map,
if
one
assume
that,
say,
10%
of
them
are
in
an
area
with
sufficient
density
to
be
served
by
a
small
MG,
that's
30,000
people
(6500
households)
served
by
MGs,
which
could
be
served
by
65
small
MGs,
assuming
100
connections
per
Case
6:
Small
MG.
It
should
be
noted
that
the
potential
for
larger
minigrids
(cases
7-‐8),
which
are
more
probable
cases
for
SREP,
was
easier
to
establish
as
information
on
clients,
existing
infrastructure,
etc.
was
easier
to
derive
(for
each
site)
from
EDH
data
and
other
sources.
44
4
PRIORITIZATION
OF
STRATEGIC
INVESTMENT
AREAS
4.1
PRIORITIZATION
OF
POTENTIAL
INVESTMENTS
Considering
the
very
diverse
technologies
and
business
models
that
could
be
used
to
achieve
the
two
Government
SREP
goals
identified
in
the
previous
chapters,
a
comprehensive
sector-‐wide
analysis
of
all
possible
renewable
energy
investments
has
been
carried
out
to
define
the
SREP
Investment
Plan
for
Haiti.
This
comprehensive
approach
was
used
in
order
to
avoid
crowding
out
of
emerging
success
cases
by
way
of
supporting
others.
The
prioritization
process
was
carried
out
under
the
leadership
of
the
Government
through
the
SREP
Task
Force
led
by
the
Energy
Cell
of
the
Ministry
of
Public
Works,
Transports
and
Communications,
with
strong
support
of
the
MDBs.
The
process
consisted
of
the
following
steps:
Step
1:
The
SREP
Team
(MDBs
and
Task
Force)
used
the
Comprehensive
Framework
for
National
RE
Program
Planning40for
a
systematic
overview
of
(i)
local
examples
for
private
sector
business
models
and
(ii)
international
examples
for
public
interventions
which
might
be
relevant
for
SREP-‐
Haiti
(“RE
Intervention
Universe”).
In
consultation
with
key
stakeholders,
this
framework
was
adapted
to
local
conditions,
and
a
large
number
of
locally
existing
firms,
business
cases,
public
and
NGO
projects
and
investments
in
the
pipeline
have
been
assembled
and
analyzed
(“Long
List”)
–
See
Appendix
1
for
the
Long
List
of
Business
Cases.
Step
2:
This
Long
List
of
business
cases
has
then
been
analyzed
in
order
to
determine
their
suitability
for
Haitian
conditions,
fit
with
Government
priorities,
readiness
for
implementation
and
scale-‐up
potential.
This
screening
resulted
in
the
identification
of
specific
potential
Haiti
business
models
(and
generalized
business
cases
based
on
these)
for
all
RE
market
segments
that
were
identified
as
promising
for
SREP
Haiti.
As
a
result,
a
menu
(or
“Short
List”)
of
the
most
promising
renewable
energy
investments
by
market
segment
(the
“12
SREP
business
cases”)
has
been
compiled
(see
Appendix
1
and
Table
7
for
a
list
of
these
12
segments/cases).
Step
3:
Each
business
model
was
then
analyzed
regarding
Economic
and
Financial
feasibility
and
relative
cost-‐effectiveness
(for
varying
market
share
targets)
to
inform
decision-‐making
(see
the
previous
chapter
and
Appendix
1).
On
this
bases,
potential
business
models
were
then
ranked
in
several
ways,
with
a
variety
of
score
card
tools
that
allowed
transparent
discussions
of
trade-‐offs,
risks
and
SREP
potential.
Table
6
and
7
below
show
some
of
the
main
results
of
this
ranking
process.
40
based
on
Reiche,
Rysankova,
Fraatz
2014
45
Table
6
is
a
simple
way
to
illustrate
some
of
the
key
issues
and
trade-‐offs
that
have
been
considered
in
the
analysis
of
possible
market
segment
volumes,
costs
and
benefits
of
the
SREP
Ongrid
cases
(9-‐12).
The
details
on
these
trade-‐offs
and
additional
parameters
that
have
been
analyzed
are
explained
in
more
detail
in
Appendix
1.
For
each
SREP
Ongrid
Case,
Table
6
contrasts
typical
values
for:
(i)
unleveraged
project
internal
rates
of
return
(for
example,
preliminary
wind
speed
estimates
that
a
10
MWp
wind
generator
at
Lac
Azuei
or
a
biomass
cogeneration
IPP
in
Port-‐au-‐Prince
would
have
lower
higher
returns
than
a
10
MWp
PV
plant);
(ii)
typical
minimum
returns
a
private
investor
would
require
in
light
of
the
current
sub-‐sector
context
(for
example,
an
investor
of
a
solar
fuel-‐saver
scheme
would
price
in
less
offtaker
risk
than
a
solar
IPP);
(iii)
the
saldo
of
these
two
(as
a
quick
practitioner
indicator
of
cases
which
might
require
de-‐risking
for
private
sector
to
move
in);
(iv)
the
way
CAPEX
(capital
expenditures,
with
output
held
constant,
for
comparability)
change
typically
with
growing
cumulative
share
of
each
market
segment
(for
instance,
once
the
best
wind
or
hydro
sites
have
been
comissioned,
costs
per
MWh
for
additional
capacity
will
rise
–
while
Capex
per
MWh
stay
stable
for
PV
for
a
practically
unlimited
cumulative
capacity);
(v)
the
way
BENEFITS
change
with
increased
cumulative
capacity
in
Haiti
(for
example,
average
fuel
savings
per
MWh
injected
variable
renewables
from
wind
and
PV
usually
increase
from
0%
Capacity
Share
to
a
certain
plateau
(GIZ2013
&
2014)
and
then
start
falling
beyond
a
country-‐specific
tipping
point);
and
(vi)
the
way
CAPEX
change
over
time
(all
else
held
constant;
for
example,
wind
capex
remained
largely
stable
over
the
last
years,
while
solar
Capex
keep
falling
fast).
Table
7
summarizes
another
set
of
illustrative
scores
that
have
been
developed
by
one
of
the
independent
consultant
teams
working
on
preparation
(Navigant
et
al
2015)
for
an
interium
version
of
the
srep
"short
list",
based
on
(i)
their
discussions
with
key
stakeholders
and
(ii)
their
analysis
of
the
typical
costs,
firm-‐level
rates
of
return
and
maximum
volume
for
the
12
segments
(see
Appendix
for
details).
For
example,
under
this
partial
ranking
by
this
particular
expert
group
that
have
been
asked
to
prepare
independent
scores,
which
were
then
all
considered
in
the
subsequent
steps
described
on
the
folloing
pages
(because
score
cards
necessarily
have
a
subjective
element
due
to
the
(implicit
or
explicit)
need
to
weight
each
subsidy
performance
indicator
for
a
total
score
–
as
demonstrated
in
Teplitz
et
al.
(2009)
for
different
cases
and
priorities
of
energy
access
ODA),
the
cases
“small
public
remote
grid”
and
“large
government-‐owned
hydro”
ranked
lowest
of
the
options
scored
in
this
specific
case
and
point
in
time.
46
TABLE
6.
SNAPSHOT
OF
ONGRID
RE
BUSINESS
MODELS
COMPARATIVE
ANALYSIS
Summary of Ongrid RE Comparative Analysis with Tool C
ONGRID BIZ MODELS
15%
hydro
14% 10%
16%
#
#
#
Public Sector
has no offtaker
risk. Private
IPP would
need derisking
#
#
#
Public Sector
has no offtaker
risk. Private
IPP would
need derisking
Lower
# offtaker
risk,
because part
# of generation
is used for
# self supply
5%
11%
23% 15%
biomass
standalone/grid mix
kW
equipment
Customer or Lease/PPA
business/NGO
solar
4%
Self supply PV
without feed-in
Behind-meter: biomass
fuel saver + feed-in
Self supply biomass
without feed-in
12b
standalone/grid mix
MW
equipment
Customer or Lease/PPA
business/NGO
12a
standalone/grid mix
MW
equipment
Customer or Lease/PPA
business/NGO
11b
0%
wind
Utility hydro
<10MW wind IPP or
utility
15% 15%
Behind-Meter: PV
fuel saver + feed-in
11a
main grid
MW
electricity
Seller
business/NGO
10
standalone/grid mix
kW
equipment
Customer or Lease/PPA
business/NGO
9
main grid
MW
electricity
Government
govt
-6%
8%
23% 12%
11%
comments on risk
hurdle rate if
PRIVATE OWNER
IRR minus
hurdle rate
9%
Owner Risk if Private
(except case 9 = only
public)
IRR (%)
RE Resource
Label
SREP CASE #
Customer segment
Scale
Product
Owner RE
Seller (SPV Owner)
I. Financial Feasibility: IRR Vs wacc
#
#
#
Zero offtaker
risk, because
RE capacity
capped at
solar noon
demand in this
biz case
(simple no
battery case)
#
#
#
Has both (i)
biomass
supply risk
(strong if
local unrest)
and (ii)
offtaker/
regulatory risk
II. Scale: Optimizing RE Net Benefits over Time
1. CAPEX 2. BENEFIT 3. CAPEX change over
TIME (share held
change with change with
increasing significantly
constant, but plant
ENERGY
increasing
comissioned later, at t1
SHARE @
ENERGY
instead of t0)
same vintage SHARE @
(t held
same vintage
constant)
(t held
constant)
10.0
%
10.0
%
0.0
%
0.0
%
5.0
%
0.0%
#
10.0
%
slight Capex
reduction: (i) wind
capex fall less than
solar, (ii) BOS (t) and
transaction costs (t)
less of an issue for
IPP than for behindmeter cases
#
2.0%
fast Capex
Reduction:
international CIF and
BOS fall fast, only
local transaction costs
depend more on share
(market stage) than
time
#
0.0%
fast Capex
Reduction:
international CIF and
BOS fall fast, local
transaction costs
depend more on share
(market stage) than
time, post 2020
battery becomes
attractive
#
5.0%
can go both ways:
capex may fall
slightly for
specialized
hardware/suppliers,
OpEx may increase or
fall (BM supply)
#
5.0%
can go both ways:
capex may fall
slightly for
specialized
hardware/suppliers,
OpEx may increase or
fall (BM supply)
Has (i)
biomass
# supply
risk,
but (ii) zero
# offtaker risk,
because BM
for
# usedself100%
supply
5.0
%
no singificant Capex
drop if built at t1 >
t0. However: (i) the
more hydro in system,
the more wind&pv
becomes viable; (ii)
Investor loses savings
between t0 and t1.
#
47
TOTAL SCORE
(higher=better)
Transformative
Scalability
Example Cases
Energy
Access
Environmental
Benefit
Seller (SPV Business
Owner)
business/NGO
business/NGO
business/NGO
Household or
Owner RE
Lease/PPA
Enterprise or Lease/PPA
Cooperative
Enersa
solar
solar
2
TOTAL
Micama
Drip Irrigation (LAC)
3
Rural Stores Refrigeration (in LAC)
muni/coop business/NGO
Rural Community Tourism Enterprises
business/NGO
Government
SUPPLY
PRODUCTIVE PV
(PPV) SYSTEMS
Seller
Scale
W
kW
kW
kW
kW
stand alone
stand alone
GENERIC
RE
BUSINESS Resou
MODEL
rce
Drip Irrigation Agriculture Coops
(Rotary International/Haiti)
SUPPLY
COOPERATIVE
PRODUCTIVE PV
SYSTEMS
solar
SUPPLY
COMMUNITY
SOCIAL PV
SYSTEMS
solar
SMALL SCALE
PUBLIC REMOTE
GRID
SMALL SCALE
ANCHOR
TENANT GRID
Zanmi Agrikol Lashto Fish Farm (Croixdes-Bouquets)
3
Micro-Enterprise Center (MEC no
microgrid) SELF other countries
L'Hôpital de Port-à-Piment
School in Port-a-Piment (Electronic
Learning Board)
solar
Companies starting in Africa:
PowerHive, TTA, etc..
solar
Earthspark Int'l Les Anglais (DIGICEL
TOWER)
solar
SELF Feyo Bien (With MEC)
2
1
3
muni/coop
business/NGO business/NGO
business/NGO
business/NGO
Seller
Government
Seller
Customer or
Lease/PPA
Customer or
Lease/PPA
TBD
MW
MW
MW
#
MW
#
kW
#
MW
MEDIUM SCALE
COOPERATIVE
REMOTE GRID
LARGE SCALE
[PRIVATE/PRIVA
TIZE/EdH]
REGIONALGRID
hydro
Nepal community-run grid
wind
solar
Alaska wind--diesel grids
NRECA Port-à-Piment, Côteaux,
Roche-à-Bateau
hydro
Pichon/Belle Anse?
wind
Port de Paix?
solar
Proposed Caracol. Other countiries
(Australia?).
2
2
Saut Mathurine (rehab)
govt
8
remote grid
7
remote grid
biomass Limye Pa w Camp-Perrin (Anchor?)
9
ONGRID RE
Filtering Discussion Tool B
SUPPLY
RESIDENTIAL
SOLAR
PRODUCTS
Seller
6
kW
5
main grid
OFFGRID village minigrd
4
stand alone
3
remote grid stand alone
2
remote grid
1
stand alone/main grid
stand alone/main
main grid
hybrid
grid hybrid
OFFGRID single user
SREP
CASE
#:
market
segment
TABLE
7.
SNAPSHOT
OF
POTENTIAL
ONGRID
&
OFFGRD
RE
BUSINESS
MODELS
LARGE SCALE
GOV'T DG
LARGE SCALE
PRIVATE IPP
BEHIND-THEMETER SOLAR:
fuel saver or mix
with feed-in
hydro
1
Guayamouc (new)
wind
Lac Azuei/Étang Sautmâtre
solar
may be part of virtual utility pv + wind
2
Hôpital Universitaire de Mirebalais
solar
L'Hôpital Bernard Mevs (Port au
Prince)
2
Darbonne Sugar Mill (Léogâne)
BEHIND-THEMETER BIOMASS:
biomass Unikode Distllery
a. fuel saver or b.
Barbancourt Distillery (La Plaine du
mix with feed-in
Cul-de-Sac)
2
COLOR
CODE. High
Medium
Low
48
Resulting
recommendations
for
grid
connected
renewables:
Based
on
a
comparative
assessments
of
economic
and
financial
viability,
associated
risks
and
transformative
potential,
the
SREP
IP
recommends
the
following
plan
of
action
for
on-‐
grid
renewables:
At
this
early
stage
of
on-‐grid
RE
development,
all
analyzed
SREP
on-‐grid
key
Cases(Cases
9-‐
12)
have
significant
potential
for
scale-‐up
in
Haiti
conditions,
once
the
necessary
enabling
conditions,
including
regulatory
framework,
adequate
feed-‐in
tariff
etc.
will
have
been
put
in
place.
The
effort
it
takes
to
reach
that
stage
depends
on
the
market
segment.
Both
the
economics
and
the
desired
“transformative”
effect
of
each
RE
Case
depend
on
the
targeted
market
share,
so
that
an
optimal
SREP
target
volume
must
be
estimated
for
each
case,
and
also
for
the
total
sum
of
implemented
cases
(for
instance,
the
total
of
ongrid
RE
volume,
in
parallel
to
the
optimal
range
for
each
individual
ongrid
RE
segment;
See
Appendix
1
for
detailed
approach
and
analysis).41
Based
on
the
initial
analysis
of
intermittent
on-‐grid
renewables
for
the
Port-‐au-‐Prince
metropolitan
grid,
it
appears
that
an
SREP
investment
in
about
10-‐20
MWp
capacity
before
2020
would
allow
an
optimal
combination
of
(a)
net
benefits
from
capacity
added
with
SREP
funding
and
(b)
net
benefits
from
post-‐SREP
long-‐term
scale-‐up
(“transformational
effect”).
This
is
due
to
multiple
trade-‐offs,
including
(i)
the
current
stage
of
the
underdeveloped
grid
and
dispatch
capability;
(ii)
the
interdependencies
of
wind
and
PV
with
seasonal
hydro
and
demand,
and
their
effect
on
fuel
savings
and
line
losses;
(iii)
the
differences
in
the
speed
of
capex
reduction
between
wind
and
PV
(Table
6
above
and
the
Appendix);
(iv)
the
current
lack
of
information
on
the
exact
net
benefits
of
the
best
wind
site
close
by
(which
might
result
in
unnecessary
wellfare
losses
in
case
of
premature
peak
capacity
commissioning);
as
well
as
(v)
the
hefty
risk
premium
private
sector
players
would
currently
add
in
light
of
the
(pre
SREP)
sector
boundary
conditions
(which
will
have
been
improved
at
SREP
exit).
41
Economic
and
Financial
Analysis
indicate
maximum
(on-‐grid
and
off-‐grid)
SREP
funding
volume
ranges
for
each
RE
market
segment
beyond
which
(i)
the
EIRR
falls
below
hurdle
rates
(that
is,
(a)
the
country
hurdle
rate
(then
that
project
segment
becomes
economically
unviable
beyond
the
maximum
volume)
and/or
(b)
the
EIRR
of
other
project
alternatives
(then
they
would
be
ranked
higher
for
SREP
selection))
and/or
(ii)
the
financial
closure
is
not
likely
to
be
reached
within
acceptable
and
efficient
subsidy
limits
(say,
because
user
segments
would
be
targeted
who’s
budget
doesn’t
allow
a
very
high
service
level).
Typical
examples
for
such
falling
EIRRs
are
the
grid
connected
renewable
cases
discussed
here,
as
costs
(Capex,
LCOE
and
net
integration
costs)
and
benefits
(fuel
saved
and
line
savings
or
losses)
depend
strongly
on
market
share
(funding
volumes).
Therefore,
SREP
selection
scores
refer
not
only
to
a
RE
market
segment
as
such,
but
implicitly
also
to
a
corresponding
range
of
SREP
funding
(and
related
output
indicators)
targeted
ton
that
market
segment
which
we
consider
(i)
“optimal”
and
(ii)
“safe”
volumes
in
a
broad,
non-‐mathematical
sense.
.
49
FIGURE
16.
INITIAL
SIMULATIONS
OF
THE
AVERAGE
ANNUAL
FUEL
SAVINGS
(Y
AXIS,
IN
US$
M)
OF
INJECTING
GROWING
AMOUNTS
OF
VARIABLE
RE
(X
AXIS,
2%
ENERGY
SHARE
=
5-‐10
MWP
(DEPENDING
ON
WIND
SHARE
AND
CAPACITY
FACTOR)
INTO
EDH’S
MAIN
GRID.
Source:
iiDevelopment
(2015)
Given
that
the
country
still
needs
to
develop
the
regulatory
and
“market
enabler”
instruments
for
an
efficient
RE
scale
up,
the
recommendation
is
to
start
with
moderate
additions
of
up
to
20
MWp
of
combined
variable
renewable
energy
capacity
under
SREP,
to
jump-‐start
the
development
of
Haiti’s
experience
with
diverse
grid-‐connected
REs.
All
analyzed
resource
options
are
feasible
in
principle
for
the
Port-‐au-‐Prince
metropolitan
area,
with
wind
and
solar
PV
being
primary
candidates
due
to
the
wind’s
good
LCOE
expected
for
Lac
Azuei
on
the
one
hand,
and
solar
PV’s
modular
character
and
site
flexibility
on
the
other
hand
(which
allows
to
develop
smaller
“line
loss
reduction”
distributed
projects
right
at
those
parts
of
EDH’s
grid
that
can
best
accommodate
it).
It
is
recommended
that
the
actual
business
model(s)
(that
is,
IPP,
PPP,
utility-‐owned
with
or
without
an
O&M
contract)
is
considered
based
on
the
feasiblity
at
the
time
of
the
actual
project
development,
namely
the
degree
of
Government
and
EDH
success
in
improving
EDH
financial
viability
to
the
level
of
making
private
sector
investments
possible.
However,
as
of
today,
a
PPP
option
appears
to
be
most
attractive
at
least
for
the
first
10
MWp
or
so,
as
it
(i)
augments
the
impact
of
limited
financial
resources
by
leveraging
public
funding
(resulting
in
a
larger
generation
capacity
installed
than
a
pure
public
sector
option);
while
(ii)
reducing
the
risks
for
private
sector
(reduced
exposure
and
risk
mitigating
instruments)
and
for
the
government
(lower
tariff
payment
obligations)
than
in
a
purely
private-‐sector
IPP
approach.
Due
to
EDH’s
lack
of
financial
sustainability,
net
metering
for
distributed
generation
is
currently
not
considered
an
option.
In
the
medium
term,
however,
it
is
recommended
to
continue
building
on
the
existing
growing
self-‐supply
market,
in
particularly
the
promising
leasing
model,
in
which
RE
companies
lease
PV
equipment
to
urban
business
and
residential
customers
to
displace
their
current
diesel
generation.
Development
of
this
50
market
will
create
a
more
thriving
solar
PV
industry,
which
can
benefit
both
the
scale-‐up
of
grid-‐connected
and
off-‐grid
renewables.
Once
conditions
are
in
place,
net
metering
arrangements
could
be
put
in
place
to
maximize
benefits
of
this
installed
infrastructure
for
both
the
businesses
and
EDH.
Resulting
recommendations
for
off-‐grid
renewables:
The
initial
geo-‐spatial
and
load
analysis
of
the
unelectrified
households
suggests
that
there
is
scope
for
several
off-‐grid
technologies
and
business
models
to
co-‐exist.
In
addition,
there
is
a
similar
argument
as
for
on-‐grid
regarding
the
case
for
minimum
and
maximum
ranges
of
optimal
SREP
support
per
market
segment
(Annex
1
and
background
document
to
it).
Therefore,
the
fastest
scale-‐up
(both
through
SREP
and
post
SREP
exit)
is
likely
to
be
achieved
by
creating
a
largely
“technology
neutral
and
business
case
neutral”
enabling
framework
for
offgrid
RE
(including
access
to
finance/equity
facility
and/or
results-‐based
financing)
with
the
objective
to
benefit
(“boost”)
a
full
range
of
different
RE
supply
options
–
from
individual
systems
to
village
grids
of
various
sizes.
Initial
market
assessment
has
identified
the
following
potential
(preliminary
data,
more
detailed
analysis
required
as
a
part
of
the
actual
project
preparation):
TABLE
8.
OFF-‐GRID
ELECTRIFICATION
POTENTIAL
Off-‐grid
RE
type
Theoretical
Max
Recommended
SREP
Potential
of
Segment
Target
(population)
(population)
RE
retrofitting,
upgrading
and
expansion
of
the
larger
rural
remote
grids
(mostly
EDH
remote
grids,
such
as
Port-‐de-‐Paix):
Small
and
medium-‐sized
village
grids
(retrofit
+
greenfield):
Individual
system
clients
(HH,
Social
Users
and
SME):
1,500,000
45-‐150K
(3-‐10%)
300,000
30k
(10%)
>5,000,000
500k-‐1M
(10-‐20%)
Source:
Navigant
and
iiDevelopment
for
SREP
IP
For
the
village
grid
segment
(cases
6-‐8),
the
most
cost-‐effective
intervention
and
the
largest
market
potential
in
terms
of
clients
reached
is
for
RE
retrofitting
of
the
larger
remote
grids
(case
7+8).
However,
given
that
EDH
operates
the
majority
of
these,
the
feasibility
of
the
approach
is
constrained
by
EDH’s
financial
situation.
Therefore,
the
recommendation
is
to
pilot
one
or
two
such
interventions
in
one
or
two
of
the
EDH
grids,
and
develop
parallel
interventions
to
scale
up
village
grids
for
smaller
rural
towns
(retrofitting
of
existing
municipal
grids,
plus
possibly
green-‐field)
in
parrellel
to
acceleration
of
market
development
for
individual
systems
(cases
1-‐5).
Private
operators
of
case
6-‐8
may
well
also
become
active
in
market
segments
1-‐5.
51
Step
4:
The
top
scored
SREP
Cases
have
then
been
compiled
into
a
range
of
possible
“public-‐private”
SREP
Projects
(or
SREP
interventions
supporting
the
scale-‐up
of
these
business
cases
/
the
development
of
these
market
segments)
in
order
to
assess
(and
rank)
in
detail:
(i)
feasibility
at
project
level
(implementable
at
high
probability
and
manageable
transaction
costs);
(ii)
synergies
and
economies
of
scale
(e.g.
various
potential
off-‐grid
electrification
business
models
would
be
included
in
one
“umbrella”
off-‐grid
electrification
project);
(iii)
overall
effect
of
different
“bundles”
of
market
segment
interventions
on
the
overall
energy
market
in
Haiti
(with
the
goal
to
optimize
the
total
effect,
efficiency,
SREP
scale-‐up
potential
and
transformational
impact
(expected
development
of
RE
market
segments
and
overall
market
post
SREP
exit)
–
for
instance
of
all
ongrid
target
market
shares
in
their
cumulative
effect,
during
and
post
SREP
as
described
in
Teplitz
et
al.
(2009));
as
well
as,
(iv)
the
specific
process
rules,
safeguards
and
priorities
of
SREP,
Government
and
MDBs.
The
resulting
projects
/
SREP
components
were
again
jointly
ranked
to
establish
a
final
order
of
priority.
Table
9
shows
the
results
of
this
prioritization
by
the
SREP
Task
Force,
taking
into
account
the
feedback
received
from
stakeholders
(scored
from
0
to
4,
4
being
the
best
score):
Development
impact
Economic
&
Financial
Viability
Implementation
capacity
(GoH)
Viability
for
MDB
Financing
1.
Integrating
RE
in
the
main
grid
4
4
3
2
3
3
2
21
2.
RE-‐based
expansion
of
Port
de
Paix
remote
grid
2
3
2
2
3
3
2
17
3.
Off-‐grid
electricity
services
for
productive,
social
and
household
uses
4.
Rehabilitation
of
small
hydro
plants
4
4
3
4
3
4
3
25
2
3
2
2
1
3
2
15
Sum
Transformative
impact
Final
Selection
of
SREP
Projects
Leveraging
additional
resources
Leveraging
private
sector
resources
TABLE
9.
RANK
FOR
FINAL
SELECTION
OF
SREP-‐HAITI
PROJECTS
Step
5:
The
public-‐private
projects
were
consulted
and
prioritized
with
key
stakeholders,
who
requested
the
addition
of
a
cross-‐cutting
component
for
building
capacity
and
improving
the
enabling
environment
for
scaling-‐up
renewable
energy
in
Haiti.
Thus,
the
final
proposed
SREP
investment
program
consists
of
five
“SREP
Projects”
(Table
10):
52
TABLE
10.
FIVE
PROPOSED
SREP-‐HAITI
INVESTMENT
PROGRAM
PROJECTS
SREP
Project
Priority
level
1.
Integrating
RE
in
the
main
grid
High
priority
–
important
transformational
potential
in
terms
of
experience
and
capacities
for
integrating
renewables
in
EDH
grid,
which
will
inject
much
needed
RE
generation
capacity
to
the
EDH
grid
and
help
unlock
future
investments
in
RE.
Need
to
ensure
adequate
maintenance
if
owned
by
EDH.
2.
RE-‐based
expansion
of
Port-‐de-‐Paix
grid
Medium/high
priority
–
less
replication
potential
due
to
limited
size
of
isolated
grids,
but
can
be
replicated
in
other
five
isolated
grids;
provides
a
good
learning
potential
(cooperation
with
academia
etc.)
and
has
a
strong
justification
from
a
development
impact
perspective
(implemented
in
the
poorest
and
most
isolated
department,
which,
however,
has
significant
development
potential
for
which
lack
of
electricity
is
a
constraining
factor).
3.
Off-‐grid
electricity
services
for
productive,
social
and
household
uses
High
priority
–
transformation
of
rural
areas
where
electrification
rates
have
been
stagnant
in
the
past
30
years;
potential
to
support
agriculture
productivity
improvements
and
other
productive
uses;
complements
a
parallel
engagement
under
IDA
and
CTF
4.
Rehabilitation
of
small
hydro
plants
Medium/high
priority
–cost-‐effective
intervention
but
limited
replication/scale
up
impact.
Need
to
ensure
adequate
maintenance
if
owned
by
EDH
5.
Enabling
environment,
capacities,
skills
High
priority-‐
Cross-‐cutting
–
essential
complement
of
projects
1,
2,
and
3
and
for
the
scaling-‐up
beyond
the
SREP
projects
Stakeholder
consultations
were
carried
throughout
the
whole
prioritization
process.
The
consultation
process
and
results
are
captured
in
Annex
III.
53
5
RESPONSIVENESS
TO
SREP
CRITERIA
The
SREP
Investment
Plan
developed
for
Haiti
is
responsive
to
all
of
the
SREP
criteria.
Table
11
summarizes
how
the
off-‐
and
on-‐grid
renewable
energy
projects
responds
to
each
specific
criteria.
TABLE
11.
SUMMARY
OF
PROJECTS’
RESPONSIVENESS
TO
SREP
CRITERIA
Criteria
OFF-‐GRID
Renewable
Energy
ON-‐GRID
Renewable
Energy
for
Grid-‐Connected
Infrastructure
It
will
result
directly
in
investments
of
net
present
value
>$100
million
in
about
10
MWp
(possible
range:
10-‐18MWp)
of
increased
decentralized
renewable
energy
capacity
and
solar
stand-‐alone
systems.
It
will
build
the
capacity
and
project
pipeline
that
will
lead
to
achieving
the
national
off-‐
grid
electrification
goal.
It
will
result
directly
in
in
10-‐20
MWp
of
grid-‐connected
renewable
energy
capacity
(depends
strongly
on
wind
share
and
absorption
capacity,
as
well
as
the
final
deal
structure)
of
installed
generation
capacity
of
grid-‐connected
renewables.
It
will
build
enabling
framework
and
the
capacity
for
further
RE
scale-‐up
Increased
access
to
energy
through
renewable
energy
sources.
It will provide electricity access to at least 1
million residents (expected range of
beneficiaries = 1-1.5 M including Port-de-Paix
It
will
provide
improved
electricity
access
(higher
tiers
per
SE4ALL
multi-‐tier
framework
to
about
1M
EdH-‐
using
citizens
Low
emissions
development.
Renewable-‐energy
mini
grids
and
small
stand-‐alone
solar
systems
and
products
emit
no
CO2;
mini
grids
that
use
backup
diesel
for
some
of
generation
emit
relatively
small
amounts
compared
to
baseline.
Renewable-‐energy
(solar,
wind,
hydro)
designed
into
the
existing
grid-‐connected
infrastructure
emit
no
CO2.
By
starting
building
experience
with
grid-‐connected
renewables
and
building
supportive
enabling
framework,
SREP
will
help
Haiti
to
set
the
path
toward
the
low
carbon
development
future.
Affordability
and
competitiveness
of
renewable
sources.
The
economic
cost
of
supply
for
mini-‐
grids
is
significantly
less
than
for
diesel
generation;
and
the
economic
avoided
cost
of
lighting
is
significantly
less
for
picoPV
than
for
kerosene.
But
given
rural
consumers’
limited
ability
to
pay
and
that
lower-‐income
consumers
must
be
reached
to
deepen
access
to
the
rural
population,
Renewable
Energy
is
shown
to
be
cost
competitive
to
existing
PaP
generation
in
this
document,
by
way
of
RE
Supply
Curve
and
advanced
modeling
of
operational
benefits
from
saved
fuel.
Increased
installed
capacity
from
renewable
energy
sources.
54
targeted
incentives
will
be
needed.
Productive
use
of
energy.
Mini
grids
directly
support
electricity
supply
to
industry
and
commercial
enterprises.
Stand-‐alone
systems
support
productive
energy
use,
directly
by
enabling
cottage
industries
and
small
retail
ventures
to
increase
their
productivity
and
indirectly
from
the
benefits
that
accrue
from
children’s
improved
education
due
to
better
lighting
and
access
to
communication,
improved
health,
and
enhanced
security.
The
SREP
project
will
further
support
productive
uses
in
agriculture
by
cooperating
with
the
Ministry
of
Agriculture
project
for
supporting
agricultural
productivity
and
agri-‐businesses.
On-‐grid
renewables
will
increase
the
quantity
and
quality
of
PaP
electricity
supply
in
light
of
the
difficult
baseline,
and
thus
help
to
meet
some
of
the
suppressed
demand,
which
is
currently
limiting
productivity,
as
explained
in
this
document
Economic,
social,
and
environmental
development
impact.
Displacement
of
diesel
and
kerosene
reduces
local
pollution
and
risk
of
fire
from
open-‐wick
lamps.
Greater
economic
opportunity
results
from
electricity
access.
Local
communities
can
retain
money
in
the
community
that
previously
would
have
been
used
to
purchase
fuel.
In
addition
to
the
obvious
positive
economic
impacts
(above
and
Annex),
local
and
global
in
environmental
impacts
of
on-‐grid
RE
feed-‐are
expected
to
be
positive
due
to
the
displaced
thermal
fuel
and
the
relatively
small
size
of
the
installed
wind,
PV
and
hydro
plants
in
the
uncritical
PaP
Lac
Azuei
areas.
Economic
and
financial
viability.
Economic
and
Financial
Viability
of
the
off-‐grid
component
has
been
confirmed
by
applying
consumer
surplus
calculation
based
on
an
estimated,
income-‐corrected
demand
curve
using
data
of
Digicel
2014
and
ECVMAS
2012.
Renewable
energy
sources
are
least
cost
compared
to
fossil-‐fuel
alternatives,
and
projects
have
positive
and
robust
economic
rates
of
return.
Financial
rates
of
return
are
satisfactory,
though
some
grant
support
for
initial
investment
is
needed
due
to
rural
residents’
lower
ability
to
pay,
especially
since
50
percent
access
must
be
reached.
Economic
and
Financial
Viability
has
been
confirmed
by
applying
standard
Economic
and
Financial
Analysis
for
on-‐grid
RE
benefits
and
costs
(see
Annex).
Leveraging
of
Infrastructure
is
needed
to
rapidly
A
leverage
of
about
1:3
-‐
1:4
55
additional
resources.
scale
up
investments
to
achieve
the
national
electrification
goal.
SREP
resources
also
leverage
investment
financing
from
other
sources
(private
sector,
other
MDB,
households,
leveraged
at
about
1:4
–
1:5
–
see
financing
plan).
(SREP
to
private+MDBs)
is
expected
for
the
on-‐grid
component,
but
will
depend
strongly
on
the
final
deal
structures
possible,
as
explained
in
main
IP
text.
Gender
equity.
Women
and
children
are
direct
and
significant
beneficiaries
as
they
will
gain
access
to
cleaner
energy
services
in
homes
that
offer
far
superior
services,
improved
access
to
essential
health
and
educational
services,
greater
economic
opportunities,
and
lower
costs
of
accessing
better
energy
services.
Improved
power
availability
will
benefit
both
men
and
women.
Where
feasible,
women
will
be
involved
in
supply
chains
–
e.g.
building
on
the
successful
example
of
micro-‐finance
for
women
group
(Fonkoze/MicamaSoley)
Development
of
a
new
renewable
energy
industry
will
create
new
opportunities
for
women
employment
and
businesses.
SREP
capacity
building
project
will
specifically
target
women
to
help
them
take
advantage
of
the
new
opportunities
.
Co-‐benefits
of
renewable
energy
scale-‐up.
Scaled-‐up
renewable
energy
reduces
local
air
pollution
and
avoids
risk
of
fire
from
fuel
spillage.
Local
diesel
fuel
use
will
be
reduced,
so
that
handling
issues
will
be
reduced,
too.
Electricity
is
an
important
input
in
poverty
alleviation
efforts
and
rural
development.
Greater
reliance
eon
locally
available
renewable
energy
will
also
support
energy
security.
56
6
SREP
FOR
HAITI:
PROGRAM
DESCRIPTION
6.1
PROGRAM
OBJECTIVES
AND
EXPECTED
OUTCOMES
The
SREP
Investment
Plan
for
Haiti
provides
a
balanced
allocation
of
resources
between
two
competing
sectoral
priorities
–
(i)
urgent
need
to
reduce
costs
and
improve
quality,
reliability
and
sustainability
of
service
(particularly
in
urban
areas),
and
(ii)
the
urgent
need
to
increase
electricity
access
(particularly
in
rural
areas).
In
both
cases,
the
(i)
improved
and
(ii)
increased
electricity
access
by
way
of
RE
scale-‐up
will
lead
to
productivity
improvements
and
fuel
economic
and
social
development.
Consequently,
the
proposed
SREP
program
in
Haiti
is
expected
to
expand
and
improve
access
to
electricity
services
by
way
of
renewable
energy
scale-‐up.
SREP
will
lead
to
both
new
electricity
connections
(Projects
2
and
3)
and
improvements
in
availability,
reliability
and
quality
of
service
for
existing
customers
(Projects
1,
2
and
4).
While
these
are
not
new
connections,
many
of
the
existing
customers
currently
receive
less
than
4
hours
of
power
supply
a
day
(corresponding
to
Tier0
of
the
SE4ALL
multi-‐tier
framework)
–
the
impact
of
the
improved
service
may
therefore
be
as
striking
as
for
the
customers
who
have
received
electricity
for
the
first
time.
The
impact
of
these
investments
will
be
tracked
using
the
SE4ALL
multi-‐tier
framework,
which
will
track
both
new
connections
and
improvements
across
tiers,
including
through
household
surveys,
with
a
baseline
planned
for
2015
(see
Chapter
10for
the
details).
In
addition,
particular
attention
will
be
paid
to
tracking
the
impact
on
productive
uses.
The
household
surveys
will
also
allow
for
gender-‐disaggregated
data
and
track
specific
impacts
on
women.
Additional
key
result
indicators
will
include
(i)
increase
in
renewable
energy
capacity
(MW)
and
generation
(MWh),
(ii)
GHG
emission
reductions
and
avoidance,
(iii)
enabling
regulatory
framework
enacted,
(iv)
expanded
skill
base
for
further
renewable
energy
scale
up,
(v)
increase
in
number
of
renewable
energy
enterprises,
of
which
female
headed,
and
(vi)
renewable
energy
jobs
created;
(vii)
knowledge
transfer/increased
capacity
of
the
Haitian
technicians
.
6.2
PROGRAM
RATIONALE
AND
DESIGN
The
SREP
Investment
Plan
for
Haiti
is
conceived
as
a
comprehensive
program,
with
the
explicit
objective
to
initiate
transformation
from
(A)
Haiti’s
current
underdeveloped,
unreliable
and
expensive
fossil
fuel-‐centered
electricity
generation
mix
to
(B)
a
modern
and
sustainable
energy
system
which
will
rely
on
diverse
sources
of
power,
able
to
provide
reliable
and
affordable
electricity
services
to
an
increasing
share
of
the
population.
The
underdeveloped
state
of
the
energy
sector
is
both
a
challenge
and
an
opportunity.
It
is
a
challenge
because
the
electricity
sector
has
still
a
long
way
to
go
until
it
will
be
able
to
57
power
the
Government’s
ambition
of
becoming
an
emerging
economy
with
a
universal
access
to
electricity
by
2030.
This
transformation
will
not
happen
through
one
program
but
will
require
a
long-‐term
consistent
support.
Diversifying
fossil
fuel-‐base
energy
with
renewable
energy
will
be
a
very
important,
but
not
the
only
element
in
this
journey.
The
ultimate
success
is
closely
linked
to
the
progress
in
the
implementation
of
structural
changes
in
the
organization
and
management
of
the
electricity
sector
–
starting
with
the
recent
Government
plan
(agreed
with
the
IMF
and
supported
by
the
WB
PRELEN
project)
as
outlined
in
Chapter
1.
On
the
other
hand,
the
underdeveloped
state
of
the
sector
is
also
an
opportunity
to
influence
and
guide
its
development
towards
a
cleaner
and
more
sustainable
path
right
from
the
start—and
thus
to
leapfrog
development
by
adopting
state
of
the
art
knowhow
and
technologies.
The
relatively
late
move
of
Government
towards
integrating
RE
actively
into
its
national
energy
mix
(both
on-‐grid
and
off-‐grid)
will
also
allow
to
leapfrog
some
of
the
less
developed
(i)
public
sector
RE
planning
methods
and
(ii)
private
sector
RE
business
models
that
have
been
tested
in
other
emerging
markets
over
the
last
decade,
which
allows
to
reap
“second
mover
advantages”
by
transferring
the
lessons
learned
in
these
international
early
stage
efforts.
One
emerging
lesson42
is
that
past
national
RE
efforts
have
often
forgotten
to
optimize
national
level
benefits
of
diverse
RE
options
due
to
a
somewhat
single-‐minded
focus
on
the
SPV-‐level
cost
of
individual
RE
projects:
a
more
balanced
look
at
both
costs
and
benefits
–
as
described
in
Chapter
3—will
allow
for
a
much
higher
net
benefits
of
national
RE
pathways.
The
SREP
program
is
designed
specifically
to
address
these
challenges
and
opportunities,
intending
to:
•
Identify
immediate,
cost-‐effective,
readily
implementable
opportunities
for
renewable
energy
investments
with
the
best
success
probability,
replication
and
scale
up
potential.
•
Demonstrate
how
renewable
energy
can
fill
the
gaps
in
the
development
of
all
electricity
systems
levels,
by
explicitly
working
on
all
these
levels
in
parallel:
from
(i)
the
EDH
main
grid,
to
(ii)
EDH
isolated
grids,
(iii)
existing
(mostly
non-‐
operational)
rural
municipal
grids,
(iv)
smaller
green-‐field
off-‐grid
investments
for
productive,
social
and
household
uses
or
smaller
villages
without
anchor
clients,
to
(v)
the
smallest
“PicoPV
systems”
sold
via
innovative
business
models.
This
allows
to
reduce
transaction
costs
and
showcase
a
synergetic,
integrated,
national
renewable
energy
development.
To
minimize
the
risks
involved
with
projects
that
work
on
all
fronts
at
the
same
time,
SREP
is
bundling
several
smaller
interventions
to
larger
projects,
focusing
primarily
on
creating
a
framework
that
can
support
diverse
technologies
and
business
models,
while
leaving
the
decisions
on
the
most
42
GIZ
2013,
IEA
2014,
Reiche
et
al
2015
58
appropriate
technologies
and
business
models
to
the
market
–
thereby
reducing
transaction
costs.
•
Start
small,
but
think
big
by
reducing
barriers
to
renewable
energy
investments.
The
barriers
to
the
development
of
renewable
energy,
as
identified
in
Chapter
2
are
daunting.
Successful
transformation
from
fossil
fuels
to
renewables
will
require
a
steep
learning
curve
both
for
the
Government
and
for
the
private
sector,
and
a
great
degree
of
experimentation
and
fine-‐tuning
of
what
works.
To
allow
this
learning
and
adjustments,
the
IP
recommends
starting
with
multiple
smaller
investments
which
will
allow
learning
by
doing
and
pave
the
way
for
successful
larger
investments
in
the
future
(as
opposed
to
placing
all
resources
into
one
large
project,
which
may
result
in
greater
immediate
renewable
energy
capacity
but
would
have
more
limited
learning
potential,
greater
risks
for
both
Government
and
the
private
sector
and
more
uncertainties
about
its
replication).
•
Complement
SREP
investment
with
other
energy
sector
interventions.
The
WB
is
currently
assisting
the
Government
through
MTPTC
and
EDH
in
overall
sector
development
and
reforms,
capacity
building,
rehabilitation
of
existing
generation,
transmission
and
distribution
assets
and
actions
to
improve
EDH
commercial
performance
and
reduce
losses.
See
Annex
3
for
details
of
the
additional
interventions.
SREP
is
an
integral
part
of
this
broader
energy
sector
support
program.
•
Complement
investments
with
a
strong
TA
and
capacity
building
program
going
beyond
the
needs
of
individual
projects
in
order
to
build
a
nation-‐wide
frameworks,
capacities
and
skills
to
support
more
ambitious
and
sustainable
renewable
energy
scale
up
(during
and
after
the
SREP
time
frame).
This
vision
is
embedded
in
the
inclusion
of
a
self-‐standing
project
focusing
on
improving
policy
and
regulatory
frameworks
and
building
a
strong
skill
base
for
renewable
energy
encompassing
both
academic
and
technical/vocational
training.
•
Build
on
and
coordinate
closely
with
other
donors.
SREP
will
coordinate
closely
with
all
stakeholders
interested
in
supporting
renewable
energy,
such
as
UNEP,
Norway,
USAID,
and
Pan-‐American
Development
Foundation.
See
Annex
III
for
details.
SREP
will
focus
on
filling
the
gaps
that
these
organizations
are
not
covering.
For
example,
many
of
these
organizations
provide
grant
funding
for
innovative
off-‐grid
energy
start-‐ups.
The
companies
that
started
with
these
funds,
however,
often
find
difficulties
to
expand
further
–
a
gap
that
SREP
aims
to
fill.
59
6.3
PROPOSED
SREP
IP
COMPONENTS
The
SREP
Investment
Plan
for
Haiti
will
include
the
following
five
components:
1.
Renewable
energy
for
the
Port-‐au-‐Prince
metropolitan
area
The
project
will
deliver
10-‐20
MW
of
renewable
energy
(depends
on
technhology
(mix),
final
deal
strustures
and
result
of
ongoing
wind
studies)into
the
EDH
main
grid
serving
Port-‐au-‐Prince
and
surrounding
areas.
The
current
installed
capacity
in
the
main
grid
is
240
MW,
of
which,
however,
only
about
100
MW
is
available
(15%
hydro
and
85%
thermal)
against
an
estimated
peak
demand
of
over
500
MW.
The
grid
serves
about
160,000
(legal)
customers
(and
many
more
“irregular”
customers),
who
all
however
receive
only
intermittent
service.
The
average
supply
time
is
16
hours,
but
this
average
hides
differences
across
geographic
areas
and
types
of
clients.
Many
household
receive
less
than
2
hour
service
a
day.
The
objective
of
the
proposed
SREP
project
will
be
to
build
Government
and
private
sector
experience
with
developing
and
implementing
grid-‐connected
renewable
energy
projects
through
supporting
investments
in
the
grid-‐connected
renewable
energy
generation.
This would be done through supporting the country’s first grid-connected variable renewable
energy project(s) (that is, one large project, or several parallel or consecutive RE projects) in
order to test and fine-tune the approaches proposed by GOH and facilitate learning. The
experience would be used to develop a suitable policy and regulatory framework to encourage
larger investments (scale-up!). The proposed approach will be preferably a public-private
partnership (PPP), encouraging private sector investments (including operations and
maintenance), with SREP financing focused on reducing the total investment costs and the risk
exposure for the private sector. The projects will be selected following competitive procedures.
The PPP option will be conditioned on the demonstrated commitment to improve EDH finances.
If a PPP option is not viable at the time when the project is developed, a public sector alternative
could be considered. However, in that case, it will involve at minimum a private sector contract
for operation and maintenance, following the established international examples of such O&M
contracts for wind.
The
project
implementation
is
linked
with
the
rehabilitation
of
the
transmission
line
from
Peligre
to
Port-‐au-‐Prince.
As
a
part
of
project
co-‐financing,
the
transmission
line
will
be
upgraded
to
allow
for
additional
renewable
energy
capacity,
therefore
accommodating
additional
power
output
from
a
wind
farm
and/or
solar
power.
Incrased
hydropower
generation
from
the
rehabilitation
Peligre
dam
will
also
facilitate
the
integration
of
the
intermittent
renewable
energy
(as
described
in
GIZ
2013),
but
the
proposed
total
capacity
60
of
intermittant
RE
remains
well
below
the
safe
limit.
Various
renewable
energy
technologies
will
be
considered,
with
wind
and
solar
PV
being
primary
candidates
due
to
wind’s
high
economic
attractiveness
at
the
best
sites
and
due
to
the
solar
PV
modular
character
and
site
flexibility,
which
makes
it
easier
to
develop
smaller
projects.
2.
Renewable
energy-‐based
expansion
of
Port-‐de-‐Paix
remote
grid
Apart
from
the
main
grid
serving
Port-‐au-‐Prince,
EDH
also
operates
11
isolated
grids,
ranging
from
300
kW
to
25
MW,
with
power
mostly
supplied
intermittently
by
diesel
units
and
some
hydro
power,
both
with
O&M
problems,
constraining
a
possibility
to
extend
access
to
more
households,
even
though
it
is
estimated
that
over
300,000
households
could
be
reached
by
rehabilitating
and
Photo credit: UNEP
expanding
these
grids.
The
Port-‐de-‐Paix
grid
is
located
in
the
North-‐West
region,
the
most
isolated
region
with
highest
proportion
of
poor
and
extremely
poor
in
Haiti.
It
has
an
operational
capacity
of
2.2
MW,
serving
some
3,600
customers.
Service
is
in
general
available
only
5-‐12
hours
a
day,
partly
dependent
on
availability
of
the
diesel
fuel,
a
transport
of
which
is
a
challenge
particularly
in
the
rainy
season
due
to
the
region’s
isolation
and
lack
of
adequate
transport
infrastructue.
The
region
has
proven
wind
and
solar
resources.
The
purpose
of
the
project
would
be
to
expand
capacity
of
the
Port-‐de-‐Paix
grid
with
renewable
energy
(most
likely
solar/wind
based
on
a
detailed
project
design)
to
improve
quality
of
service
for
existing
customers
and
to
facilitate
expansion
of
the
isolated
system
to
additional
customers.
This
project
will
serve
as
a
pilot
case
for
potential
replication
of
a
similar
arrangement
in
other
EDH
isolated
grids.
Learning
from
a
previous
wind
project
which
was
installed
in
Port-‐de-‐Paix
by
EDH
in
1978
with
assistance
of
the
German
cooperation—and
is
no
longer
operational
due
to
the
lack
of
operations
skills
and
maintenance
by
EDH
local
staff—the
proposed
SREP
project
will
be
implemented
as
a
public-‐private
partnership,
with
private
sector
responsible
for
installation,
operations
and
maintenance,
and
for
covering
at
least
a
part
of
the
investment
costs.
The
objective
of
the
project
would
be
to
demonstrate
improvements
and
expansion
in
energy
access
in
Port-‐de-‐Paix’s
isolated
grid
through
its
hybridization
with
renewable
energy.
This
project
would
serve
as
a
demonstration
project
for
other
isolated
grids
that
due
to
their
remoteness
cannot
be
connected
with
the
main
grid.
The
project
will
be
developed
with
participation
of
the
private
sector.
At
minimum,
the
private
sector
will
be
contracted
for
EPC
delivery
and
operation
and
maintenance.
The
feasibility
of
a
PPP
approach
(with
private
sector
investing
directly
in
the
project),
will
be
explored
during
final
project
design
.
61
3.
Off-‐grid
electricity
for
productive,
social
and
household
uses
Photo credit: UNEP
Investments
in
rural
electrification
in
Haiti
have
remained
scarce
overall
in
the
last
30
years,
resulting
in
a
rural
electrification
rate
kept
extremely
low,
as
shown
in
chapters
1-‐3.
at
around
5%.
With
EDH
absent
throughout
most
of
the
rural
areas,
local
governments
and
users
have
been
left
on
their
own
to
find
solutions
to
their
electricity
needs.
Up
until
recently,
individual
diesel
systems
and
kerosene
were
the
only
available
lighting/power
solutions
for
most
people,
businesses
and
institutions
in
rural
areas.
More
recently,
renewable
energy
technologies,
especially
solar
PV,
have
taken
off
as
a
new
alternative
for
off-‐grid
energy
access.
Solar
PV
is
emerging
as
an
alternative
to
diesel
or
kerosene
in
both
urban
and
rural
areas.
In
urban
areas,
mainly
as
an
alternative
to
diesel
self-‐supply
that
many
EDH
customers
(mainly
businesses)
need
to
recurr
to
due
to
unreliability
of
EDH
service
and
resulting
damages
to
their
productive
and
economic
activities.
In
rural
areas,
households
now
have
an
option
to
replace
their
kerosene
consumption
with
solar
PV
products,
and
renewable
energy
solutions
can
also
be
developed
for
productive
and
social
uses.
The
proposed
project
will
build
on
the
existing
promising
experiences
and
business
models
and
establish
enabling
and
financing
frameworks
to
facilitate
their
replication
and
scale-‐up
–
from
solar
lanterns,
through
village
grids
to
renewable
energy
to
improve
productivity.
The
project
will
also
link
with
Government
agri-‐business
and
competitiveness
programs
–
to
support
productivity
improvements
through
displacing
expensive
diesel
generators
with
renewables.
The
project
will
be
co-‐financed
with
the
existing
IDA
Rehabilitating
Infrasructure
and
Access
project
and
a
parallel
CTF-‐funded
Modern
Energy
Services
for
All
Project,
which
is
being
developed
in
parallel.
See
Annex
V
for
the
CTF
concept
and
its
complementarity
to
SREP.
62
4.
Rehabilitation
of
existing
small
hydro
plants
EDH
owns
and
operates
six
small
and
mini
hydro
plants
(with
a
capacity
below
2.5
MW
each).
Only
one
of
them,
however,
is
fully
operational;
all
others
do
not
produce
at
their
potential
capacity
due
to
an
urgent
need
for
repairs
and
rehabilitation.
Rehabilitation
of
the
small/mini
hydro
plants
is
a
Photo credit: UNEP
cost-‐effective
way
of
expanding
renewable
energy
capacity,
allowing
EDH
to
reduce
expensive
fossil
fuel
generation.
In
addition,
increasing
the
share
of
hydro
resources
in
the
overall
generation
mix
will
facilitate
further
investments
in
intermittent
renewables
such
as
wind
and
solar.
EDH
has
commissioned
a
study
evaluating
the
potential
for
the
rehabilitation
of
the
small
hydro
plants,
which
has
identified
the
investment
plan
for
rehabilitating
the
six
small
hydro
plants
which
could
add
up
to
20
GWh/a
of
renewable
generation
at
a
total
costs
of
around
US$10
million.
The
project
can
be
developed
in
phases.
EDH
has
identified
three
priority
investments:
Drouet:
(2.5
MW),
Gaillard
(0.5
MW)
and
Caracol
(0.8
MW)
at
an
estimated
costs
of
about
$6
million
Given
EDH’s
maintenance
deficiencies
in
the
past,
the
project
will
pay
specific
focus
on
ensuring
that
credible
arrangements
are
being
put
in
place
to
ensure
future
maintenance
of
the
rehabilitated
facilities,
such
as
through
setting
up
a
maintenance
fund
with
an
obligatory
EDH
contributions,
outsourcing
operation
and
maintenance
to
private
sector
or
concessioning
the
hydroplants
to
the
private
sector.
In
addition
to
the
existing
small
hydro,
various
studies
are
underway
to
assess
in
more
detail
the
potential
for
new
mini-‐
and
micro-‐hydro
plants.
The
proposed
project
will
also
consider
a
PPP
arrangement
for
these
new
plants.
.
63
5.
Building
enabling
environments,
capacities
and
skills
for
renewable
energy
scale
up.
All
renewable
energy
investments
currently
suffer
from
the
lack
of
transparent
and
consistent
regulatory
framework,
fiscal
policies
favoring
fossil
fuels,
and
capacity
and
skill
constraints
at
both
professional
and
technical
levels
throughout
the
supply
chain.
Renewable
energy
scale-‐up
therefore
requires
comprehensive,
systematic
and
consistent
efforts
to
eliminate
these
barriers
at
the
Photo credit: UNEP
national
level
for
all
types
of
renewable
energy
investments.
For
that
reason
the
SREP
Investment
Plan
includes
a
specific
project
for
these
cross-‐cutting
issues,
as
opposed
to
including
a
TA/capacity
building
component
in
each
project,
which
would
be
the
more
usual
approach,
but
which
could
lead
to
fragmentation
of
efforts
and
potential
inconsistencies.
The
project
will
cover
a
broad
range
of
enabling
activities,
but
the
key
focus
will
be
on
two
areas,
which
the
stakeholder
consultations
revealed
as
the
main
bottlenecks,
(i)
lack
of
enabling
regulatory
and
fiscal
frameworks,
and
(ii)
lack
of
local
capacities
and
skills
for
the
implementation
of
renewable
energy
projects.
The
implementation
will
be
closely
linked
to
the
execution
of
the
four
investment
components
described
above,
which
will
provide
a
real-‐life
“RE
market
development”
laboratory
for
testing
and
fine-‐tuning
of
the
regulatory
instruments
and
for
learning
(e.g.
involving
universities
in
the
implementation
of
some
renewable
energy
investments).
The
capacity
building
activities
will
include
a
gender
dimension.
It
is
expected
that
the
effect
of
this
project
in
terms
of
removing
information
asymmetries
and
other
market
inefficiencies
will
help
to
“lift”
several
RE
market
segments
to
a
new,
more
efficient
level,
which
will
significantly
bring
down
the
risk-‐adjusted
financing
costs
of
new
RE
projects,
as
described
in
GIZ
2014b
for
PV
markets
in
three
countries.
6.4
PROGRAM
CO-‐BENEFITS
The
direct
impact
of
the
SREP
Investment
Plan
for
Haiti
will
be
to
engage
the
country
in
a
broad
development
of
renewable
energy
in
order
to
increase
energy
access,
as
well
as
reduce
costs
and
improve
quality,
reliavbility,
and
sustainability
of
energy
services,
particulary
in
urban
areas.
The
SREP
will
have
a
direct,
positive
impact
on
the
living
conditions
of
the
population
and
the
productivity
of
its
economic
activities,
as
well
as
ensuring
avoidance
of
GHG
emissions.
In
a
development
paradigm
in
which
social
and
environmental
benefits
are
inextricably
linked,
the
SREP
program
is
expected
to
yield
the
following
co-‐benefits:
•
Reduced
dependence
on
fossil
fuels,
leading
to
o avoiding
the
growth
of
GHG
emissions
due
to
increased
use
of
fossil
fuels;
64
•
•
•
•
•
o supporting progress towards country’s energy autonomy and security;
o in the long term, lowering energy bills, by reducing the cost of energy generation;
Reducing
local
pollution;
Creation
of
new
economic
activities
and
jobs
related
to
new
technologies
with
private-‐sector
participation;
Greater
private-‐sector
participation.
SREP
will
strengthen
the
participation
of
private-‐sector
operators
in
renewable
energy
production
through
(i)
initiatives
to
build
their
technical
and
organizational
capacity
in
the
energy
sector
and
(ii)
better
legal
and
regulatory
arrangements
that
engage
the
private
sector
in
a
meaningful
way;
and
Reduced
levels
of
poverty
and
improved
quality
of
life
of
rural
population.
In
recent
years,
the
fight
against
poverty
has
been
an
important
part
of
Government
action.
In
the
quest
to
improve
Haiti’s
living
conditions,
the
Government
recognizes
improved
access
to
and
greater
use
of
electricity
as
a
key
enabling
condition;
Improved
socioeconomic
status
of
women.
SREP
initiatives
will
contribute
to
enhancing
women’s
quality
of
life
by
reducing
the
time
they
allocate
to
household
chores,
improving
their
access
to
modern
energy
for
income-‐generating
activities,
and
increasing
their
access
to
modern
forms
of
communication.
In
rural
communities,
the
availability
of
electric
lighting
and
other
energy
services
can
lead
to
better
education,
health,
and
public
security,
especially
for
women
and
children.
Once
a
community
has
electricity,
a
wide
range
of
income-‐generating
activities
opens
up
for
women
(e.g.,
ice-‐making
and
food-‐processing
businesses,
small
retail
shops,
and
restaurants).
65
7
FINANCING
PLAN
TABLE
12.
SREP
FINANCING,
CO-‐FINANCING
AND
PRIVATE
SECTOR
FINANCING
LEVERAGE
SREP
IP
Projects
1-‐5:
1. On-‐Grid
RE
for
the
Port-‐au-‐Prince
metropolitan
area
2. RE
for
Port
de
Paix
remote
grid*
3. Offgrid
electricity
for
productive,
social
and
household
uses
4. Rehabilitation
small
hydro*
5. Building
enabling
framework,
capacities
and
skills
for
RE
scale-‐up
Total
SREP
financing
Total
Public
co-‐financing
Private
sector
financing
leveraged
10
Tbd**
Tbd**
0-‐4
0-‐7
Tbd
15
36.5
>45
0-‐4
0-‐12
0
1
2.5
0
30
Tbd
Tbd
*
SREP
Project
2
and
4
(Port-‐de-‐Paix
and
hydro
rehabilitation)
will
be
determined
during
final
preparation
which
of
these
two
will
be
funded
to
which
extent.
**
Leverage
for
on-‐grid
RE
in
which
private
sector
project
sponsors
would
feed
into
EDH
grid
will
depend
on
the
specific
SREP
Case
(#9-‐
12)
and
may
reach
from
about
1:1
(typical
wind
on-‐grid
PPP
with
moderate
risk
appetite
investors)
to
1:5
(fuel
saver
cases)
in
Haiti
pre
2020.
Project
sponsor
wacc
in
case
of
international
bidders
will
depend
strongly
on
the
debt
terms
they
can
secure
on
the
global
market.
66
8
INSTITUTIONAL
FRAMEWORK
FOR
IMPLEMENTATION
The
implementaiton
of
the
proposed
SREP-‐funded
projects
will
be
overseen
and
coordinated
by
the
Ministry
of
Public
Works,
Transport,
Energy
and
Communications
(MTPTC)
through
its
Energy
Cell,
with
support
from
the
SREP
Task
Force
–
it
is
expected
that
the
same
Task
Force
established
for
the
preparation
of
the
Investment
Plan
will
retain
an
advisory
role
during
its
implementation.
Haiti
SREP
task
force
consists
of
Ministry
of
Environment,
Ministry
of
Economy
and
Finance,
Ministry
of
Agriculture,
Natural
Resources
and
Rural
Development,
Ministry
of
Planning
and
External
Cooperation,
EDH,
CIAT,
Bureau
of
Mines
and
Energy.
MTPTC
has
ample
experience
with
implementation
of
donor
programs,
and
is
currently
also
managing
the
World
Bank’s
Rebuilding
Infrastructure
and
Access
Program.
Individual
SREP
projects
will
have
individual
implementation
arrangements
attuned
to
each
project’s
characteristics
and
needs:
1.
Renewable
Energy
for
the
Metropolitan
Area
The
project
will
be
managed
by
MTPTC
through
its
Energy
Cell
and
EDH
(exact
arrangements
to
be
defined),
which
will
be
in
charge
of
implementing
the
project
preparation
studies
and
carrying
out
the
competitive
processe(s)
for
selecting
the
private
sector
firm(s)
for
the
PPP
contract.
2.
Renewable
energy
for
remote
grids
–
Port-‐de-‐Paix
demonstration
project
The
project
will
be
managed
by
MTPTC
through
its
Energy
Cell
in
cooperation
with
EDH,
which
will
be
in
charge
of
implementing
the
project
preparation
studies
and
carrying
out
the
competitive
process
for
selection
of
the
private
sector
operator,
and
channelling
of
subsidies
to
the
project.
EDH
wll
implement
r
the
upgrading
and
expansion
of
the
Port-‐de-‐Paix
isolated
grid
(Component
3).
3.
Off-‐grid
electrification
for
productive,
social
and
household
uses
The
project
will
be
managed
by
MTPTC
through
its
Energy
Cell
with
the
support
of
the
Bureau
of
Mines
and
Energy,
except
the
CTF-‐funded
access
to
finance
facility,
which
will
be
implemented
through
a
competitively
selected
financial
intermediary,
and
the
private
sector
support
facility,
which
will
be
directly
managed
by
IFC.
4.
Small
hydro
rehabilitation
The
project
will
be
managed
by
EDH,
the
owner
of
small
hydropower
assets.
5.
Building
enabling
environment,
capacities
and
skills
for
renewable
energy
scale-‐up
The
project
will
be
managed
by
MTPTC
through
its
Energy
Cell,
which
will
cooperate
closely
with
the
universities
with
renewable
energy
programs,
such
as
the
State
University
of
Haiti
(UEH)
and
Quisqueya
University
(UniQ),
and
the
Gender
and
Energy
Interagency
Commission.
9
ENVIRONMENTAL
AND
SOCIAL
ASPECTS
The
lead
national
SREP
coordinating
entity,
MTPTC
(Energy
Cell),
has
undertaken
lending
and
technical
assistance
projects
with
the
World
Bank
and
IDB.
As
such,
they
have
policies
and
procedures
in
place
to
ensure
compliance
with
the
Government,
the
World
Bank
and
IDB
social
and
environmental
safeguards.
In
addition,
IFC
Performance
Standards
and
its
policies
on
social
and
environmental
sustainability
will
be
appropriately
applied.
Specific
arrangements
are
as
follows:
Environmental
and
Social
Management
Framework
(ESMF).
Since
specific
locations
of
investments
will
be
determined
during
project
design,
an
Environmental
and
Social
Management
Framework
will
be
prepared
that
defines
the
environmental
and
social
(E&S)
planning,
review,
and
clearing
processes
that
follow
national
and
MDB
guidelines.
The
Ministry
of
Environment
will
play
a
fundamental
role
in
designing
this
framework.
Resettlement
Policy
Framework
(RPF).
This
framework
will
establish
the
modalities
for
conducting
resettlement
action
plans
(RAPs)
and
outline
components
that
must
be
integrated,
such
as
legal
frameworks,
eligibility
criteria,
methodology
for
asset
valuations,
and
mechanisms
for
stakeholder
consultations.
Strenghtening
the
Safeguards
Compliance
Capacity
under
SREP
will
be
of
utmost
importance
and
will
require
continued
joint
effort
between
Government,
World
Bank,
IFC,
and
IDB.
Environmental
and
Social
Assessments.
Each
SREP
project
will
be
subject
to
comprehensive
E&S
assessments,
which
will
include
detailed
studies
aimed
at
uncovering
the
particular
E&S
impacts
of
a
project
or
its
subprojects.
The
studies
include
an
Environmental
and
Social
Impact
Assessment
(ESIA),
an
Environmental
and
Social
Management
Plan
(ESMP),
and
a
full
or
abbreviated
RAP.43
Adequate
and
relevant
stakeholder
consultations
must
be
undertaken
and
guide
the
development
of
the
E&S
studies.
Additional
specialized
E&S
management
plans
and/or
initiatives
may
be
required
to
better
address
the
impacts
associated
with
a
given
projects
or
subproject.
Preparation
of
detailed
E&S
studies
must
adhere
to
Haitian
laws
and
regulations,
as
well
as
the
E&S
policies,
guidelines,
and
standards
of
the
MDBs.
Responsibilities.
Project
implementing
agencies
and
where
applicable
sub-‐project
implementers
(e.g.
SREP
supported
RE
IPPs
or
mini-‐grid
operators)
are
responsible
for
compliance
with
national
law
and
regulations
and
the
E&S
policies,
guidelines,
and
standards
of
the
MDBs.
These
operators
are
also
responsible
for
preparing
the
required
detailed
E&S
studies
(e.g.,
ESIA,
ESMP,
and
RAP),
obtaining
clearances,
implementing
all
required
mitigation
and
monitoring
measures,
providing
adequate
budgets
to
sustain
these
activities,
and
complying
with
any
directives
issued
by
the
relevant
parties.
43
The
type
of
RAP
will
depend
on
the
number
of
persons
affected
by
resettlement
effects
experienced
as
a
result
of
the
project.
68
The
detailed
E&S
studies
prepared
by
sub-‐project
implementers
must
be
submitted
to
both
the
Ministry
of
Environment
and
the
MDBs
for
review
and
approval.
The
Ministry’s
approval
is
based
on
Haitian
laws
and
regulations,
while
that
of
the
MDBs
is
based
on
their
respective
E&S
policies,
guidelines,
and
standards.
The
Ministry
will
be
responsible
for
the
review
and
clearance
of
ESIAs
and
ESMPs
for
subprojects.
It
provides
a
one-‐stop
clearance
process
by
involving
all
other
key
governmental
agencies
in
the
approval
process.
The
MTPTC
with
its
Energy
Cell
have
overall
responsibility
for
implementing
the
ESMPs,
RPFs,
and
any
specialized
E&S
management
plans
and/or
initiatives
developed
for
the
subprojects.
MTPTC
will
not
issue
licenses/permits
to
sub-‐project
implementers
(if
such
licenses/permits
are
required)until
the
environmental
entity
or
other
relevant
authorities
issue
E&S
clearances.
Stakeholder
Consultations.
The
ESMF
contains
detailed
checklists
and
generic
mitigation
measures
to
ensure
that
potential
impacts
are
addressed
in
E&S
assessments
and
subproject
management
plans.
In
preparing
the
required
detailed
E&S
studies
(e.g.,
ESIA,
ESMP,
and
RAP),
the
subproject
implementers
must
adhere
to
the
requirements
for
ensuring
that
participatory
stakeholder
consultations
have
taken
place,
as
captured
in
the
E&S
policies,
guidelines,
and
standards
of
the
MDBs.
Project-‐affected
people
and
other
critical
stakeholders
must
be
informed
and
consulted
about
the
nature,
timing,
and
scope
of
the
relevant
project
impacts
and
mitigation
measures.
Participatory
approaches
must
be
utilized
in
organizing
and
conducting
the
consultations.
Gender
considerations
must
also
be
factored
in.
Capacity
Building.
The
Government
in
collaboration
with
its
MDB
partners
has
carried
out
numerous
workshops
and
other
capacity-‐building
activities
for
key
stakeholders
through
the
PRELEN
Project,
through
IDB
projects
and
in
the
framework
of
the
preparation
of
the
SREP
Investment
Plan.
Capacity
building
activities
under
PRELEN
include
the
hiring
of
a
consultant
to
support
the
MTPTC
and
EDH
in
the
implementation
of
safeguards
policies
(during
Project
preparation),
and
technical
assistance.
The
SREP
Interventions
will
build
on
that
and
other
MDBs’
capacity-‐targeted
activities.
It
is
thus
expected
that
these
improved
capacities
will
then
facilitate
the
implementation
of
safeguards
instruments
under
the
SREP.
Environment,
Health,
and
Safety
Management
System.
Project
and
subproject
implementers
will
design,
construct,
and
operate
the
projects
and
implement
an
environment,
health,
and
safety
(EHS)
management
system.
Public
Disclosure.
Project
and
subproject
implementation
will
require
communication
and
consultation
with
both
the
Haitian
stakeholders
impacted
directly
and
indirectly
by
the
subproject
and
other
stakeholders
within
and
beyond
the
project
zone
of
influence.
Disclosure
of
the
detailed
E&S
studies
(i.e.,
ESIA,
ESMP,
and
RAP)
must
be
done
in
compliance
with
the
public-‐disclosure
requirements
of
the
IDB
and
the
World
Bank
Group.
Relevant
documentation
will
be
made
available
on
the
websites
of
the
Government
and
the
MDBs
and
through
additional
means.
69
10
MONITORING
AND
EVALUATION
AND
KNOWLEDGE
MANAGEMENT
This
chapter
describes
the
areas
in
which
the
key
tools
of
monitoring
and
evaluation
(M&E)
and
knowledge
management
will
be
strengthened
as
part
of
implementing
the
SREP
Investment
Plan
for
Haiti.
The
chapter
also
introduces
the
SREP
M&E
framework,
which
will
be
coordinated
by
the
MTPTC
Energy
Cell.
10.1
STRENGTHENING
MONITORING
AND
EVALUATION
The
Energy
Cell
within
the
Ministry
of
Public
Works,
Transportation
and
Communications
(MTPTC)
will
define
and
implement
the
SREP
M&E
system
aimed
at
collecting,
analysing,
processing,
and
reporting
on
key
information
related
to
program
activities,
as
well
as
progress
in
reaching
SREP
impacts
and
outcomes
and
lessons
learned.
The
SREP
program
will
contribute
to
ongoing
efforts
to
establish
an
energy
sector-‐wide
M&E
system
(see
Box
3)
to
ensure
that
the
sector-‐wide
M&E
framework
in
Haiti
(i)
includes
SREP
indicators
to
facilitate
reporting,
(ii)
improves
indicators
related
to
renewable
energy,
and
(iii)
puts
a
data
collection
system
in
place
to
obtain
baseline
information.
BOX
3.
BUILDING
M&E
CAPACITY
FOR
THE
KEY
SECTORIAL
AGENCIES
S
World
Bank,
through
the
PRELEN
project,
is
currently
providing
technical
assistance
to
the
sector-‐wide
M&E
system
that
lacks
human
and
technical
resources.
This
support
is
targeting
both
MTPTC
and
EDH,
main
elements
of
this
M&E
system.
Technical
assistance
is
being
provided
to
MTPTC
and
EDH
on
how
to
develop
an
effective
M&E
Framework.
Under
PRELEN,
MTPTC
has
overall
responsibility
for
the
M&E
of
project
activities.
In
this
context,
it
prepares
the
project’s
M&E
reports
which
include:
(i)
quarterly
reports
on
the
performance
of
the
Project,
based
on
the
M&E
framework
established
during
Project
preparation;
(ii)
quarterly
Interim
Financial
Reports
(IFRs);
and
(iii)
annual
independent
financial
audits
of
the
Project
and
of
EDH.
Technical
Assistance
further
helps
the
MTPTC
set
up
its
own
monitoring
framework.
EDH
also,
in
the
framework
of
its
corporate
responsibilities,
reports
on
its
performance
on
a
regular
basis
and
provides
the
Project
Coordination
Unit
(PCU)
with
the
relevant
information
10.2
SE4ALL
MULTI-‐TIER
FRAMEWORK
FOR
MEASURING
ENERGY
ACCESS
In
addition
to
the
general
SREP
M&E
approach,
the
Haiti
SREP
Program
will
apply
the
Sustainable
Energy
for
All
(SE4ALL)
Multi-‐Tier
Framework
(MTF)
introduced
in
the
Global
Tracking
Framework
of
2013
and
updated
in
2015
(Figure
17).
MTF
replaces
the
traditional
binary
measure
of
energy
access
(with
or
without
access)
with
a
five-‐tier
measurement
methodology,
which
also
assesses
other
attributes
of
the
energy
service,
such
as
quantity,
quality,
affordability,
and
duration
of
supply.
The
MTF
therefore
allows
then
assessingthe
assessment
of
not
only
whether
households/enterprises/
institutions
have
electricity
connections,
but
also
whether
the
electricity
service
is
adequate
to
meet
their
demand.
The
framework
therefore
can
thus
differentiate
between
a
minimum
level
of
service
(such
as
provided
by
a
small
solar
kit
–
Tier
1)
and
final
aspiration,
which
is
24h
unlimited
reliable
and
affordable
power
supply
(Tier
5),
70
acknowledging
also
that
a
grid
connection
does
not
guarantee
the
highest
tier
(e.g.
intermittency
and
unreliability
of
supply
would
downgrade
Tier
5
connection
to
lower
tiers).
The
multi-‐tier
approach
thereby
allows
tracking
of
new
access,
but
as
well
as
also
improvements
in
access
levels
across
tiers.
FIGURE
17.
DEFINITION
OF
ENERGY
ACCESS
AND
MULTI-‐TIER
FRAMEWORK
71
10.3
RESULTS
FRAMEWORK
The
Table
below
summarizes
the
SREP
M&E
results
framework
for
Haiti.
TABLE
13.
SREP
RESULTS
FRAMEWORK
Result
Support for
low-carbon
development
pathways by
reducing
energy poverty
and/or
increasing
energy security
Indicators
Baseline
Minimum
Targets by
2020
Minimum
Targets by
2030
Means of
Verification
National measure of energy
poverty.
MEPI = tbd
tbd
tbd
MEPI = This will
be calculated based
on the M&E
component
Electricity output from ongrid and
offgrid renewables in GWh per
year (excluding baseline hydro)
2
42
150
MWp installed and
feeding into grids +
offgrid sales
reports; dispatch of
vRE in PaP
Increased annual public and
private investments (US$) in total
targeted subsector(s) per country
ca. 1 M
20 M
60 M
, Annual reports
Government, EdH,
RE IPPs and
offgrid sales
companies as per
supply-chain
analysis
Increased
supply of
renewable
energy
Increased annual electricity output
(GWh) as a direct result of SREP
offgrid and ongrid interventions
n.a.
20
tbd
see 2 rows above
Increased
access to
modern energy
services
Increased number of women, men,
businesses and community
services benefiting from improved
access to electricity due to SREP
interventions
n.a.
1M
M&E, sales reports
of companies
New and
additional
resources for
renewable
energy
projects
Leverage factor: share of financing
from other sources compared with
SREP funding (notation:
SREP:Others)
n.a.
1:3 – 1:4
Donor reports;
private sector
financial
statements; sales
reports;PPAs
signed…
72
10.4
STRENGTHENING
KNOWLEDGE
MANAGEMENT
AND
LESSONS
SHARING
The
outcome
of
consultations
with
stakeholders
from
academia
(August
2014,
November
2014,
February
2015);
as
well
as
civil
society
and
end-‐user
beneficiaries
(February
2015),
revealed
the
need
for
focusing
SREP
attention
on
building
capacity
and
awareness
of
renewable
energy
technologies,
including
the
creation
of
a
pool
of
skilled
technicians.
The
lack
of
appropriately
skilled
labor
is
constantly
identified
as
a
major
barrier
for
scaling
up
renewable
energy.
44
Government
agencies,
private
enterprises,
multilateral
institutions,
and
NGOs
widely
recognize
the
shortage
of
skilled
technicians
for
installation,
operation
and
maintenance
of
renewable
and
decentralized
energy
systems
as
one
of
the
major
barriers.
For
the
particular
case
of
Haiti,
the
recent
World
Bank
Systematic
Country
Diagnostic
(February
2015)
outlines
the
correlation
between
high
level
of
education
and
skills
and
higher
labor
income.
It
further
explains
that
skills
and
experiences,
together
with
access
to
services
such
as
electricity,
contribute
to
a
higher
productivity
in
the
country.
In
the
absence
of
adequate
skills,
the
private
sector
will
most
likely
be
unable
to
increase
its
productivity
(see
Box
4
below).
BOX
4.
WORLD
BANK’S
SYSTEMATIC
COUNTRY
DIAGNOSTIC
(FEB
2015)
Surveys
also
point
to
the
lack
of
qualified
manpower.
One
major
constraint
faced
by
enterprises
in
Haiti
is
the
difficulty
to
find
technicians
that
are
well
qualified,
particularly
in
new
technologies.
This
forces
the
country
to
position
itself
as
a
low
cost
producer
for
goods
and
services
requiring
little
skills.
An
opaque
labor
market
may
be
at
fault,
with
no
institutional
mechanism
to
enable
the
exchange
of
information
between
labor
demand
and
supply.
A
more
rigorous
analysis
confirms
that
more
experience
and
skills,
as
well
as
access
to
inputs,
are
associated
with
better
performance.
An
analysis
of
correlates
of
successful
self-‐employed
performance
was
carried
out,
using
three
measures:
revenues
per
worker
(in
log),
revenues
per
worker
in
the
top
30
of
the
distribution,
profits
per
worker
in
the
top
30
of
the
distribution.
With
the
caveat
that
this
exercise
indicates
a
conditional
correlation
rather
than
a
causal
relation,
the
analysis
helps
nevertheless
identify
the
characteristics
and
inputs
that
could
be
significantly
more
relevant
to
improve
understanding
of
what
will
it
take
to
elevate
productivity
and
generate
jobs
in
the
self-‐
employed
and
small
business
sector.
The
results
suggest
that
experience,
skills,
and
access
to
inputs,
such
as
electricity
and
water,
are
associated
with
higher
returns.
Policies
to
boost
households’
income
–
wherever
they
work
–
are
essential
to
sustaining
and
accelerating
welfare
gains.
In
urban
areas,
achieving
this
objective
will
have
to
involve
the
creation
of
economic
opportunities
and
better
jobs.
A
higher
level
of
education
and
skills,
for
example,
is
correlated
with
higher
labor
income.
In
rural
areas,
the
stagnation
of
both
extreme
poverty
and
income
inequality
observed
between
2000
and
2012
reflects
the
increasing
reliance
on
the
low-‐productivity
agricultural
sector.
Because
80
percent
of
the
extreme
poor
live
in
rural
areas,
it
will
be
necessary
to
develop
this
sector
by
means
of
policies
that
support
income
diversification.
Such
a
diversification
could
contribute
at
spreading
risk,
strengthening
food
security,
and
preserving
biodiversity.
44
From
Gap
to
Opportunity:
Business
Models
for
Scaling
Up
Energy
Access,
IFC,
2012
/
Developing
Effective
Networks
for
Energy
Access,
USAID,
2013
/
Stimulating
quality
investment
in
SE4ALL,
IIED,
2013
/
Public-‐Private
Roundtables
at
the
Fourth
Clean
Energy
Ministerial,
CEM,
2013
/
IFC-‐WB
London
Investor’s
Conference
on
Private
Sector
Led
Off-‐
Grid
Electrification:
Executive
Summary,
The
World
Bank
Group,
2013
73
Furthermore,
both
in
urban
and
rural
areas,
it
is
necessary
to
promote
expanded
access
to
inputs
(e.g.
seeds,
electricity,
finance,
water)
and
to
product
markets
(e.g.
transport),
as
well
as
improve
the
business
environment
in
order
to
increase
the
profitability
of
employment.
Greater
economic
opportunities
and
better
jobs,
especially
in
urban
areas,
would
contribute
in
reducing
crime
and
violence,
further
improving
the
business
climate.
Another
important
barrier
is
the
lack
of
awareness
of
renewable
energy
technology.
A
World
Bank
mission
visited
numerous
departments
in
Haiti
in
February
2015
with
the
purpose
to
gather
an
understanding
about
end-‐user
beneficiary
needs
and
perspectives.
The
mission
identified
widespread
lack
of
awareness
of
and
co-‐benefits
resulting
from
deploying
renewable
energy
technologies
in
Haiti.
The
SREP-‐funded
Building
Enabling
Environment,
Capacities
and
Skills
for
Renewable
Energy
Scale-‐
up
Project
will
focus
on
building
capacities
and
skills,
working
closely
with
academia.
Where
feasible,
the
remaining
SREP-‐funded
projects
will
integrate
learning
and
capacity
building
activities,
and
where
relevant
and
feasible
involve
universities
in
implementation.
74
11
RISK
ASSESSMENT
The
overall
implementation
risk
of
the
SREP-‐Haiti
Investment
Plan
(IP)
is
assessed
as
Moderate
to
High
–
mostly
due
to
overall
country
political
and
governance
risks.
Table
14
presents
the
main
identified
risks
and
mitigation
measures
used
to
ensure
successful
implementation
of
the
program.
Appropriate
corrective
and
supportive
measures
will
be
put
in
place
during
the
formulation
and
implementation
of
the
IP
in
light
of
the
lessons
that
will
have
been
drawn
from
the
activities.
Guidance
from
members
of
the
SREP
Steering
Committee
will
be
actively
and
regularly
sought
to
ensure
that
good
practices
are
always
adopted.
TABLE
14.
MAIN
IDENTIFIED
RISKS
AND
MITIGATION
MEASURES
USED
TO
ENSURE
SUCCESSFUL
IMPLEMENTATION
OF
SREP-‐HAITI
Risk
type
Description
Mitigation
measure
Residual
risk
Technical
Solar PV and other
renewable-energy, mini-grid
technologies and gridconnected RE technologies
(solar, wind, hydro) may not
work as intended.
Grid-connected solar, wind and hydro technologies are mature, with Low
decades of experience worldwide.
Grid-connected intermittent
renewables cannot be
connected to the grid due to
grid’s low capacity and
reliability.
WB is supporting a study that analyzes optimal ways of integrating Low
renewable energy into EDH grid. Findings of the study will inform
both how much intermittent renewables the grid can absorb, which
sites are most suitable for injecting the power to the grid, and what
kind of grid improvements are needed to ensure grid reliability.
Detailed feasibility studies and mini-grid and off-grid projects
currently under way will provide additional site-specific information
and valuable lessons learned for fine-tuning designs.
For off-grid renewables, comprehensive TA and capacity building to
project developers will be offered.
The SREP program will be developed through learning by doing
approach. It is envisaged that SREP investments will be used for
several smaller, sequential renewable energy investments in order to
minimize the risks of grid absorption of larger scale intermittent
renewables and to promote learning by both the Government and the
private sector.
Maintenance and operation
failures.
EDH has had challenges with the maintenance of assets. Therefore, High
the proposed SREP investments will establish specific mechanisms for
supporting maintenance and overall sustainability of investments.
These include:
Reliance on private sector for both investing and operating SREP
renewable energy projects (both grid and off-grid), with PPPs
structured to provide both incentives and contractual obligations to
private sector to sustainably operate and maintain the assets.
Trained managers and operators will be required at all facilities.
In off-grid projects, long-term maintenance contracts will be required.
For individual systems, provision of after sale services will be a
condition for support. Training of technicians will be expanded.
River/stream flow data quality Resource availability will be confirmed during feasibility studies, Moderate
and adequacy are uncertain.
including sensitivity analysis for hydrology changes
Hydrology affected by
climate change.
Risk of price rise in biomass fuel will be mitigated by project
developers having long-term supply contracts for a portion of their
fuel needs, as well as directly controlling access to a portion of
Biomass fuel availability can requirements through their own fuelwood plantations.
become limited and prices rise
after investments are made.
Wind resource data quality
and adequacy are uncertain.
Financial
Mini-grid and solar off-grid
customers have limited ability
to pay or will not pay.
Willingness-to-pay and market studies have been carried out in the Moderate
framework of the preparation of the IP. The surveys confirmed a fairly
high willingness to pay for electricity (about US$30 per month on
average, but with significant differences across regions and types of
customers). To accommodate different willingness to pay, SREP will
76
support a wide range of technologies and business models, which will
cater to different market segments with varying willingness to pay –
from solar lanterns, through pay as you go solar kits/home systems up
to village mini/micro-grids. The initial experience of off-grid energy
companies in Haiti is positive, showing that rural customers are
willing to pay for reliable electricity, particularly if they can control
their expenses, such as through pre-paid meters.
EDH payment default risk or
payment delays
The Government, along with the MDBs and development partners, is High
keenly aware of this temporary difficulty and is working closely with
EDH to overcome its problems through improving its financial
position, see Chapter 1 for more detail of the IMF-supported loss
reduction program in Haiti.
SREP will develop risk mitigation instruments to support private
sector investment, mitigating the EDH off-taker risk
Associated CTF credit line
will not disburse due to
lenders lack of
interest/knowledge in off-grid
businesses
CTF access to finance facility is being designed in close consultations Moderate
with the Haiti banking sector. There is an interest of several financial
intermediaries (FIs) to support off-grid SMEs but successful
implementation of the access to finance facility will require a greater
degree of de-risking for the FIs. It is therefore anticipated that for the
first round of lending, most of the risk will be carried by the
Government.
SREP risk mitigation facility will be developed to progressively seek
greater participation of FIs in off-grid electrification lending
Training to FIs on pipeline development and due diligence for
appraising renewable energy projects will be provided.
Project developers have
limited financial management
capability.
Transaction advisory services and capacity building are provided to Moderate
overcome these risks.
77
Institutional
The Haitian Gourde will
depreciate.
Investors already take into account some degree of currency Moderate
depreciation risk. The SREP-Haiti will consider offering guarantees to
cover such risks
Government failed to secure
anticipated funding for the
proposed projects.
Co-financing from the MDBs is about to be secured, and other Moderate
partners and the private sector have already shown interest in cofinancing. If the necessary co-financing resources are not secured
during the project preparation phase, the projects could be phased,
with the first phase benefitting from the secured funding and the
second one for scaling up once additional funding is secured.
Poor governance; one of the
lowest transparency indices in
the world.
SREP-Haiti program will be designed to promote transparency—e.g. High
development of a transparent regulatory framework, sub-projects will
be competitively selected – including the grid-connected renewables,
the CTF access to finance facility will be managed by a competitively
selected financial intermediary and loans will be awarded according to
transparent rules published in the Operating Guidelines. In addition,
all projects will need to adhere to MDB procurement and financial
management rules.
Regulatory and contractual
mechanisms are not adhered
to or are delayed.
Currently, the regulatory framework for both grid-connected and off- High
grid renewables is weak and inconsistent. There is no regulatory
agency. The value added of SREP will be in developing, testing and
fine-tuning regulatory instruments and building capacities for their
implementation.
Limited human capacity for
project development and
implementation.
Energy cell is staffed with competent professionals, including Moderate
to
renewable energy and rural energy specialists. Further recruitment is High
in process.
SREP program will include a specific project focusing on building
local capacities of Government, private sector, academia and
technicians to facilitate renewable energy scale-up
Clearance and approval are
Energy Cell will work with the project developers to avoid bottlenecks Moderate
to
78
High
delayed.
Environmental
Power-planning capacity
gives inadequate
consideration to renewable
energy development.
The SREP will support EDH in improving planning processes to Moderate
incorporate generation from renewable energy, both intermittent and
dispatchable technologies. New expansion planning tools will be
introduced and capacities of power planners will be strengthened.
Projects have unacceptable
environmental impacts.
All projects must comply with environmental assessments as part of Moderate
MDE oversight and clearance procedures.
MDE and MTPTC (via Energy Cell) will monitor according to Haiti’s
legislation and MDB requirements.
Political
Instability surrounding the
2016 Presidential election.
Social unrest in localities
having electricity supply
issues.
Social
Projects have unacceptable
social impacts.
The extensive “consensus building” process as part of SREP Moderate
to
preparation and implementation will build a broad-based support for High
the project, and will rely on the dialogue and network developed under
the off-grid activities of the IDA project.
Intensive stakeholder consultations were carried out during SREP Low
preparation and will continue when projects are implemented.
Specific project-level, social-safeguards assessment will be
undertaken according to the BME and the newly established Gender
and Energy Interagency Commission, and compensation or other
mitigation actions will be taken in accordance with the framework and
Government of Haiti and MDB guidelines.
By providing affordable electricity to more people, the program will
promote greater economic growth and equity, including targeted
investment activities in rural areas. A focus on productive energy uses
and employment creation is incorporated into the program design and
will target vulnerable groups (women and youth). Design of financial
mechanisms under the SREP will take affordability and willingness to
pay into account, supported by information, education, and
79
communication campaigns.
Project Design
CTF – access to finance
facility funds could remain
unused due to a lack of
interest and knowledge of
private sector providers
(including NGOs and
cooperatives) and financial
intermediary / MFIs.
The existence of a pipeline of scalable projects.
Low
to
Moderate
The interest in FIs in accessing the funds.
The ongoing consultations with key stakeholders about on-lending
terms and risk-sharing. Arrangements to ensure terms respond to their
needs.
Provision of technical assistance to stakeholders – including private
sector and FIs.
80