Zambia Energy Demand Stimulation Incentive programme: Driving Productive Use of Energy and Energy Access
We are launching The Zambia Energy Demand Stimulation Incentive (ZEDSI) programme to support 100 + mini grid projects in Zambia. The Call for Proposals is now open
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Zambia Energy Demand Stimulation Incentive Programme (ZEDSI)
CLICK HERE TO REGISTER FOR THE CALL FOR PROJECT APPLICATION
Background
The Government of Zambia’s Presidential Initiative announced its objective of powering 1,000 communities with decentralized renewable energy (DRE) solutions by 2030. Sustainable Energy for All (SEforALL), in collaboration with The Rockefeller Foundation and the Global Energy Alliance for People and Planet (GEAPP) have designed a two-track approach to achieve this objective and address the unique challenges of the Zambian rural electrification market.
Track 1: Zambia Energy Demand Stimulation Incentive (ZEDSI): This Results and Performance-Based Financing incentive is designed to support the commercial viability and sustainability of a first set of 100+ priority mini-grid projects. The Universal Energy Facility (UEF), managed by SEforALL is a multi-donor RBF initiative which provides grant funding to mini-grid operators to stimulate sustained energy consumption growth, through productive uses of energy in agri-value chains, businesses, public institutions and households, leading to rural development, improved revenues, operating margins ensuring the commercial viability of mini-grid projects.
Track 2: Integrated Electricity Framework: The UEF will provide targeted support to the government of Zambia (GRZ) to develop investment strategies to scale-up financing inflows into the DRE sector to get from 100+ communities to 1,000 communities. Developers will be empowered to exploit synergies between various DRE technologies, ensuring no-one is left behind. The goal is to develop sustainable models for DRE investments that can be replicated at scale, building on the learnings drawn from the ZEDSI programme.
Under Track 1, the Universal Energy Facility (UEF) will support mini-grid operators to undertake demand stimulation activities – by providing grant payments to eligible mini-grid projects upon verification of sustained electricity consumption and revenue growth via productive uses of energy. Demand stimulation activities are those operational activities that directly result in increased electricity consumption and revenue growth for the mini-grid project which provides adequate, reliable electricity to agri-value chains, businesses, public institutions and households engaged the production of good or services.
The ZEDSI programme is jointly implemented with the United Nations Office for Project Services (UNOPS) to meet the specific needs of the Zambian mini-grid market. Mini-grid operators shall undertake an ecosystem approach to ensure the commercial viability and sustainability of their projects. The ZEDSI programme complements existing donor funding initiatives including the Beyond the Grid Fund for Africa (BGFA), European Union, United Nations Development Programme (UNDP), USAID Power Africa and World Bank that collectively supports the DRE sector in Zambia.
Application Timelines
Application Steps
Step 1 – Upon announcement of the ZEDSI Call for Project Application, eligible Applicants must Register their Interest to Apply via this registration page on SEforALL or UEF website.
Step 2 – Upon receipt of Applicant’s registration and subject to meeting the eligibility requirements, the UEF will create an account for the Applicant on its Online UEF Platform.
Step 3 – Applicants are strongly encouraged to review all ‘UEF application documents and templates’ available for download on the Online UEF Platform before starting their application.
Step 4 – Applicants must complete the Online Application Form and submit all supporting documentation by the application submission deadline of 20th December 2024.
Step 5 – Successful Applicants shall undergo further background checks to validate their application prior to signing a Grant Support Agreement with UNOPS.
Important notice: Interested Applicants are strongly encouraged to attend our ‘in-person briefing event’ for more information and seek clarification on the application requirements and procedures.
Bidders Workshop Dates
11 & 12 November – Convening of Stakeholders and Bidders Workshop in Lusaka, Zambia.
Kindly confirm your participation to the workshop by emailing UEF@seforall.org
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Frequently
Asked Questions
We put together a series of questions our team have received at different stages of the implementation of our programmes.
Still have a question?
Please reach out to us. We would be delighted to clarify any of your queries.
Mini-grids Programme
Mini-grid projects proposed by the applicants will be evaluated by the UEF to ensure they meet a minimum level of development in order to be eligible for a grant from the UEF. Pre-qualified applicants must be able to demonstrate that they have community, local government, and national government support for proposed projects, in the form of relevant licenses, permits, letters, and other documentation.
In the current Project Application Collections, only projects utilizing solar PV as their primary generation technology are eligible for funding. While diesel generators and other non-renewable backup power sources can be included in a project, they must not exceed 40% of power generation in any given fiscal quarter. Additional eligible generation technologies may be announced in future Project Application Collections.
Applicants can apply for multiple projects; however, each project must meet the eligibility criteria and be submitted within the specified application windows for the relevant countries.
The grant disbursement of USD 592 per electricity connection is based on verified results. As part of the grantee’s claims report, the UEF performs remote connection verification through the UEF Platform. For remote verification, the UEF Platform enables grantees to verify the existence and consumption of every connection reported over a 30-day period through smart meters built in as part of each connection. In addition to remote verification of connections, the UEF Programme Manager conducts random on-site verifications to ensure grantees are in compliance with agreed standards and other terms. The UEF Programme Manager verifies the deployments and connections, and payments are made upon final approval.
No, the UEF does not provide pre-financing for projects. The programme disburses grant payments based on a results-based incentive model, where payments are made only after verified and approved milestones by the UEF Programme Manager. The UEF provides direct grant payments on a “results-based” basis to grantees, upon the satisfaction of three milestones: (1) Proof of delivery of the major project equipment to the approved project site; (2) Successful commissioning of the mini-grid; and (3)Submission of claims report which cover connections established by the grantee and verification of connections which meet technical standards and provide stable power supply for at least 30 days after commissioning. Applicants must demonstrate sufficient financial resources to develop, construct, commission, and operate their mini-grid projects independently before receiving any grant disbursements.
SSPU Programme
CAPEX is determined by the actual cost incurred by the applicant to purchase the hardware components. Applicants shall be required to provide evidence of the Landing costs (for imported systems), or the Invoiced prices (for systems sourced locally), including payment receipts in the Claims Report stage of the UEF process.
Yes, DC systems larger than 100W and capable of powering productive use appliances are eligible.
No, there is no substitute for the ‘cash-inbank' requirement.
Where applicable, applicants may in addition also submit a binding letter of financial commitment from financiers or an asset financing agreement with OEM.
The 30% Installation Payment will be paid at least 30 business days after deployment and verification of Claims.
The 10% Sustainability Payment will be paid at the end of the Grant Agreement period.
Once Pre-qualified, any changes to the approved Company Structure after being pre-qualified must seek further approval from the UEF Advisory Board.
Media kit
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