SENEGALESE RURAL ELECTRIFICATION AGENCY ASER

Electricity Everywhere, for Everyone for a Sustainable Development

AFRICA ELECTRIFICATION INITIATIVE 2009

Rural Electrification and Programmatic CDM The Senegalese Rural Electrification Agencys experience
Maputo, 11 june 2009
1 Ousmane Fall SARR, ASER

Senegal ?

MISSION ET OBJECTIVES OF ASER

ASER: AN AUTONOMOUS ENTITY OF THE MINISTRY OF ENERGY IN CHARGE OF PROMOTION AND DEVELOPMENT RURAL ELECTRIFICATION IN SENEGAL OBJECTIVES ASSIGNED BY THE GOVERNMENT SCALE UP RURAL ELECTRIFICATION RATE :
8% in 2000 to 16% in 2006, 16% in 2006 to 50% in 2012

-> give access to electricity to 3,8 millions of senegalese rural inhabitants or 365 000 rural Households. in 2006, only 102 000 rural households have access to electricity.

ASERS STRATEGY AND MAJOR INNOVATIONS

I. INSTITUTIONAL LEVEL
I.1 PUBLIC-PRIVATE-PARTNERSHIP and diversification of financing sources
- DIVISION OF THE TERRITORY INTO RE Concessions The implementation of these concessions is planned (from 2008 to 2010) and supported by financial partners like WB, ADB, KFW, AFD,EU, The Senegalese Government and the Private Sector. 1. Dagana-Podor-Saint-Louis ; 2. Louga-Kebemer-Linguere; 3. Mbour; 4. Kolda-Vlingara; 5. Kaolack-Nioro- Fatick-Gossas 6. Foundiougne; 7. Rufisque-Thies-Tivaouane; 8. Bambey-Diourbel-Mbacke; 9. Bakel-Kanel-Matam-Ranerou; 10. Kaffrine-Kedoudou-Tamba; 11. Sdhiou; 12. Bignona-Oussouye-Ziguinchor - SYSTEMATIC INTERNATIONAL BIDDING PROCEDURE TO SELECT THE PRIVATE OPERATOR OF EACH CONCESSION.
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The New RE Strategy based on:

ASERS STRATEGY AND MAJOR INNOVATIONS

I. INSTITUTIONAL LEVEL (cont)
I.2 Creation of a Rural Electrification Fund called FER
BASKET OF ALL FINANCIAL RESSOURCES DEDICATED TO DEVELOP RURAL ELECTRIFICATION IN SENEGAL,

I.3 Support for Locally Initiated Rural Electrification Project, IN PARTNERSHIP WITH NGO, LOCAL
COMMUNITIES, LOCAL SME/SMI

I.4 Maximization of RE impact on Poverty Reduction Strategy by :

- PROMOTION OF PRODUCTIVE USE OF ELECTRICITY AND INCOME GENERATION ACTIVITIES, - DEVELOP SYNERGIES BETWEEN ENERGY SECTOR AND OTHER DEVELOPMENT SECTOR (EDUCATION, HEALTH, AGRICULTURE, TOURISM, etc.) and creation of a MULTISECTORAL COMITTEE (CIMES). The main objective of this comittee is to ensure the electrification of basic socio-economic infrastructures (schools, health posts, water pumping stations, hotels, etc.)

ASERS STRATEGY AND MAJOR INNOVATIONS

II. TECHNOLOGY AND PROJECT DESIGN LEVEL

II.1 Concept of technology neutral approach

Because all proven electrification technologies are eligible. Our objective is to electrify the maximum of households at a least cost, thanks to a technico-economic optimization. In this context decentralized electrification technologies can be promoted. For each concession, a Local Electrification master Plan is systematically elaborated. This plan defines all appropriate electrification technologies, the required initial investment and the type of market (needs, capacity to pay, type of payments proposed by consumers) ;
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Rural Electrification Technology Neutral approach

Habitat configuration 1

Habitat configuration 2

Mix OF 1 & 2

Habitat configuration 1

Habitat configuration 7 2

ASERS STRATEGY AND MAJOR INNOVATIONS

II. TECHNOLOGY AND PROJECT DESIGN LEVEL (CONT)
II.2 Prefinancing of consumers internal electric installations by the concessionnaire
In order to increase the penetration rate and reach 60% of potential consumers in newly electrified villages, we decide to alleviate the access barriers (high connexion fees). The concessionnaire has an obligation to prefinance the consumers internal electric installations like cable, bulbs, meter, plugs, etc). This investment will be considered as a facilty given to the consumer who will pay it back via his bill during a period of 10 years.

II.3 Energy efficiency and Demand Side management

EFFICIENT LIGHTNING - Systematic use of CFL in households, - Use of Solar energy for street lightning, EFFICIENT MOTORS - replacement of thermal motors by other electric motors functionning with renewable energies (solar)
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ASERS STRATEGY AND MAJOR INNOVATIONS

II.3 Energy efficiency and Demand side management

EFFICIENT LIGHTNING

EFFICIENT MOTORS

All these innovations introduced in ASERs RE strategy require additional resources. Thus, an alleviation of these financial barriers that prevent a scaling up of electricity access to rural population becomes a necessity for ASER that wants to reduce the high cost of energy services in rural area compared to the low income of consumers. This CDM PoA aims to mobilize the needed additional finances through CDM revenues.

The Project design : CDM program of activities (PoA) promotes

the use of energy efficiency light bulbs in newly electrified households in Senegalese rural area.
Compact Fluorescent Light Bulbs (CFLs) will be installed by the concession operator instead of incandescent light bulbs (I L Bs) that people are accustomed to use in rural areas when villages are electrified

PoA
The whole Senegalese country
CPA 12: Concession 12 CPA 3: Concession 3 CPA 1: Concession 1
One POA & Many CPAs, One Methodology ( AMS-IIC, small-scale for each CPA: each concession under threshold 60 GWh / yr) One coordinating agency: ASER, the other stakeholders: RE Concession operator and beneficiaries Baseline or most likely scenario: use of 40 W incandescent lights, Crediting Period: 10 years for each concession,

CPA 2: Concession 2

The Project design

Project Boundaries: Rep. of Senegal, ratified the KP on July 20, 2001
Position in Project Cycle: Validation by DOE Leakages: no leakages, In these conditions, 1,724,000 CFLs will be distributed. The proposed PoA will

permit to reduce the electricity consumption by 552 GWh during the 10 years of crediting period of the 12 CPAs and avoid the emission of 463,000 tonnes of CO2eq. Starting of the first CPA in a Concession managed by ONE Maroc (COMASEL) An ERPA of 120 000 tons has been recently signed with WB (CDCF). Minimum of 15% of CERs revenues will be used for coverage of the monitoring costs. The remaining amount will be dedicated for the additional subsidy needed. Without these CER revenues, ASER would not be able to provide additional subsidies required by concessionaires to cover the cost for CFLs dissemination in rural areas. Rural people are too poor to afford themselves the purchase of initial CFLs which price is in average 6 time higher than the price of an incandescent light bulb. So, the sale of CFLs in rural area is not an attractive activity.

Institutional framework of The CDM Project

Project implementation and Monitoring

Avoid replacing the CFLs by normal light bulb: Installation of devices to limit

power demand, Used CFLs are systematically collected by operator and recycled Incentive for good practices and monitoring: CDM revenues partially distributed to Concessionaires in order to stimulate the implementation and monitoring of this EE project and its continuation, Monitoring methodology: AMS IIC. Parameters monitored: Energy consumed and average annual operating hours Sampling is allowed under AMS IIC. To reduce the monitoring cost

Environmental and social benefits of the Project

CO2 emission reduction,

Improvement rural peoples living conditions (give a sustainable

alternative of traditional lightning system like kerosene, candle, batteries, that have negative impact on environment and health), Contribution to rural electrification development because of additional financing source for the Senegalese Rural Electrification Fund

Lessons learnt from ASERs CDM project development

Programmatic CDM can be an opportunity for CDM development in Africa because of its: - low transaction costs - flexible approach that allows the gradual inclusion of each CPA, good institutional and legal framework (double counting avoidance, REC exclusive right) Requires Efficient capacity building program, based on a learning by doing approach is a necessity for developing countries having a huge potential of CDM project (example of WBs PHRD) otherwise, it requires financial resources (PDD, DOE) Baseline survey (CFL penetration factor) ..BUT, still some barriers We suggest to be removed by CDM EB !!
The starting date of a CPA which according the existing rules cannot be before the registration date of the PoA. Time consuming process (one of our CPAs can be affected); The number of methodologies and technologies allowed per CPA= 1 . Should be increased, because PoA is aimed to reduce transaction costs but not increasing them (in our case:2 PoAs for one RE program ( EE and solar PV generation in the same area); Simplified the demonstration of additionnality in African context (weak industrialisation not the same level than China, India or Brazil, less polluting countries, more affected by climate change)

 With CDM revenues, we increase access to electric services and give better living conditions for Senegalese rural people

CONTACT: Ousmane Fall SARR Directeur des Etudes et du Systme dInformation, ASER Email: ofsarr@aser.sn
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