Power Africa - Beyond the Grid Fund Zambia (REEEP) Power Africa - Beyond the Grid Fund Zambia (REEEP) The Power Africa: Beyond the Grid Fund for Zambia is an ambitious new undertaking to bring basic clean energy access to one million Zambians and accelerate private sector growth in energy generation and distribution in the country. The Beyond the Grid Fund for Zambia will operate from 2016-2020, with a maximum funding level of 200MSEK. Within that period the Fund intends to provide 1 million Zambians with access to clean electricity.

The envisaged approach is designed to stimulate the emergence of new business models while demonstrating sustainability over time. It is envisaged that eligible ventures may include power generation (from clean and renewable sources), distribution and service provision, equipment supply, utility approaches, consumer financing (e.g. pay-as-you-go and rent-to-own) models as well as investments in the efficient use of energy.

The Fund will be open to all relevant industry actors, especially so-called independent energy service providers. Over the course of its life span, a number of different windows and sub-facilities may be developed to target specific provider and beneficiary groups. The Fund will consider supporting qualifying proposals/businesses with a blend of grant and concessional funding and aims to disburse up to 40MSEK of funding in 2016, with further substantial mobilisations planned for 2017 and 2018.

The Fund is administered by the Renewable Energy and Efficiency Partnership (REEEP) on behalf of the Swedish Embassy in Zambia and with the (non-financial) support of Zambian partners such as the Rural Electrification Authority (REA) and the Energy Regulation Board (ERB). 

REEEP (the Agent) will support Sida and the Embassy in Lusaka with technical advice on which energy services ventures to fund, as well as perform due diligence and analyse the sustainability of business plans. REEEP will also support the Embassy in outreach and stakeholder dialogue among the concerned parties - industry actors, relevant ministries, regulators and government bodies for rural electrification and private sector investments in energy. Detta är ett kompletterande beslut till tidigare insatsbeslut ZAM-DC30/2016, ZAM-DC02/2017, och ZAM-DC40/2017  i syfte att möjliggöra detaljerad uppföljning, verifiering och analys av de resultat som förväntas levereras av de energiserviceföretag som ambassaden ingått kontrakt med, samt stöd till att samordna och stödja utvecklingen av den zambiska energimarknaden off-grid. Detta för att säkerställa integriteten i den resultatbaserade insats med upphandlade genomförandeparter som BGFZ använder sig av, samt hantera de avsevärda marknadsriskerna. Det kompletterande beslutet innehåller  uppdaterade bedömningar inom följande områden:

1. Resultat och måluppfyllelse (budget)
2. Samarbetspartens kapacitet

I övrigt gäller och hänvisas till tidigare beslut i ärendet:

I beslut ZAMDC74/2015 från 18 december 2015 beslutade UM Lusaka att etablera en finansieringsfacilitet (fond) för förnybara energiinvesteringar utanför det nationella nätet i Zambia (senare döpt till Beyond the Grid Fund Zambia, BGFZ); att efter avslutad upphandling ingå kontrakt med Renewable Energy and Energy Efficiency Partnership (REEEP) för att utveckla och administrera BGFZ till ett värde av 8 000 000 kronor under 2016-2017.

I beslut ZAM-DC30/2016 som ersatte det tidigare beslutet i ärendet beslutade UM Lusaka att även inleda upphandling av tjänster i enlighet med fondens syften till ett uppskattat värde av 40 000 000 kronor.

I beslut 2016-004076 av Sidas generaldirektör 6 december 2016, beslutades om avsteg från Sidas insatsregel vad gäller kravet på ett övergripande insatsavtal (givet att förhållandet till REEEP istället regleras i kontrakt), samt om en utökad total finansieringsram om upp till 200 miljoner kronor för BGFZ.

I beslut 2016-004212 av Sida AC Afrika 15 december 2016 beslutades att inom ramen för BGFZs första upphandlingsfönster tilldela kontrakt till fem kvalificerade anbudsgivare (energiserviceföretag) om högst SEK 150 000 000.

I beslut ZAM-DC02/2017 utökades REEEPs kontrakt med 3 miljoner kronor i arvoden för att säkerställa måluppfyllelse, samt avsattes ytterligare en miljon kronor för resor och övriga ersättningsgilla kostnader som kan användas efter ambassadens godkännande.

I beslut ZAM DC40/2017 utökades REEEPs kontrakt med två miljoner kronor för upphandling av en underleverantör för ett data och uppföljningssystem (For Open Aid)
The intervention aims to design and set up of a new fund for large-scale funding of renewable off-grid energy ventures in Zambia that offers access to renewable energy services to households, businesses and public institutions.

Sweden through Sida wants to promote investments in off-grid electricity supply in Zambia by promoting ventures that can cater to the needs of poor people and pave the way for further investments in sustainable energy. A focus on Energy Services, should take into account that access to energy is not an end itself. Arguably it is how you put the energy to use that really matters – perhaps reading under a LED light at night to further your education; chilling your milk to be able to sell it on to the market; cooking from biogas instead of collecting firewood, or starting your very own local IT-business. As much as needs are likely to differ, various quantities and qualities of electricity can be supplied to consumers at varying levels of affordability.

As part of its development cooperation portfolio, Sida and the Embassy of Sweden in Lusaka is launching a funding facility to increase access to secure and sustainable energy in Zambia by spurring innovation and leveraging private and public investments in renewable energy outside the national grid. The facility will be open to all relevant industry actors. The envisioned approach is to stimulate the emergence and entrance of new business ventures beyond the grid, while at the same time demonstrating their sustainability over time. The selected ventures may include power generation, distribution and service provision from renewable sources of energy, or investments in efficient use of energy.
Barriers for market entry to the Zambian energy sector remains high and are compounded by lack of adequate planning for generation and distribution of electricity. Regulation in the sphere of off-grid energy is unclear an may hinder market development. A sparsely populated countryside and high levels of poverty require pro-poor business models to reach substantial scale before being able to turn a profit.

The main outcomes of the intervention are expected to be:

- Increased access to modern renewable energy and electricity off-grid.

- Reduced dependence on fossil fuels and avoided greenhouse gas emissions through a shift to renewable energy sources in Zambia.

- A growing confidence with banks to extend credits to off-grid business ventures

- Technology and knowledge transfers that develop the energy sector of the country.