ACTIVITY 1: Increase Energy Supply
The aim of Activity 1 is to increase the impact of a number of energy interventions. Tasks were designed to include community selection and mobilization, development of financing mechanisms, and the provision of support during the construction phase of projects identified by the Rural Energy team. The Rural Energy Program will work with IPPs to arrange project financing from various sources, including loan funding available through the Rural Energy credit mechanism, local cash and in-kind contributions, and other sources. In those cases where loans and other contributions fail to meet the total cost of the rehabilitation and construction projects, IPPs will be permitted to apply for limited grant funds from USAID to cover the difference. The team intends to implement approximately 10 to 15 IPP projects and will provide additional developers of small hydro projects with technical, financing, construction and operating support on an as-needed basis over the course of four years. Projects will be carried out by working closely with established and experienced local partners capable of quickly and effectively addressing social and technical aspects of the project in a systematic manner.
The Program will provide technical assistance to help rural communities start, manage, operate and maintain energy generation companies – that is, Independent Power Producers (IPPs) capable of delivering power directly to the villages and surrounding regions. Villages interested in participating in the Program will receive organizational assistance to develop a local power generation or distribution facility, and the Program will assist counterparts in planning for and managing energy production and distribution facilities on a commercial basis. All energy facilities must be privately owned to receive project assistance.
- Business and operational management plans will be developed for each Independent Power Producers.
- The Rural Energy Program will provide assistance to perform necessary technical and financial feasibility studies, including resource assessments and options analyses on distributed generation, co-generation and other innovative energy solutions.The Program will evaluate the appropriateness of the proposed facility siting for both rehabilitation and new construction projects based on engineering technical designs prepared prior to project implementation.The Rural Energy Program will work to assist the Independent Power Producers in the negotiation of power purchase agreements with local electricity distribution companies
The program will help the village or individual entrepreneur to:
- develop a business plan, including a sensitivity analysis, cost / benefit analysis, a cash flow statement, and a proposed financing structure for each local power project
- secure the maximum amount of local resources for the investment
- identify possible credit opportunities
- provide a full range of financial planning services
- prepare credit applications for financing institution identified (e.g. local commercial banks, other donors programs, the European Bank for Reconstruction and Development, EBRD financing mechanism)
The Program will consider providing direct grant support to selected projects that demonstrate specific need.
Maps for proposed Rural Energy Program
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Map for proposed Rural Energy Program (53.01 KBytes) |
Year 1 |
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Map for proposed Rural Energy Program (293.33 KBytes) |
Years 2,3,4 |
