Project Detail |
PROJECT DESCRIPTION
A. Project Development Objective
PDO Statement
18. The Project Development Objective (PDO) is to expand access to energy services for households, enterprises,
schools and health centers in rural areas of Burundi.
PDO Level Indicators
19. The PDO level indicators are as follows (section VI presents the complete Results Framework):
• People provided with new or improved electricity service (Core Results Indicator, Number)
• Health centers and schools provided with new or improved electricity services (Number)
• Households provided with clean and efficient cookstoves (Number)
• Schools provided with clean and efficient cookstoves (Number)
B. Project Components
20. The proposed Solar Energy in Local Communities Project (SOLEIL), also known as NYAKIRIZA by local Burundians,
is designed to provide energy services to promote human capital development, enhance productivity of rural
enterprises, and reach poor and vulnerable populations, including women.
21. The proposed project harnesses solar power to deliver energy services and simultaneously diversifies the
energy mix in a country currently dominated by hydropower, thereby strengthening energy security and contributing to
a decrease in CO2 emissions (by using solar power to replace use of kerosene or reduce use of gensets). The proposed
project will leverage the recent advances in the solar market to expand access in Burundi; advances include: (a) dramatic
technology innovations that have led to equally dramatic cost reductions in renewable energy (particularly solar PV) and
energy storage technologies, significantly reducing the costs of serving remote customers through mini-grids; (b) recent
innovations in today’s standalone solar systems resulting in more service for less money, more product offerings meeting
quality standards (owing to the impressive efforts of Lighting Africa), and new business models such as pay-as-you-go that
lower the upfront barrier of acquiring the systems; and (c) parallel technology innovation in smart grids and smart metering technologies that created a space for new business models that (i) significantly reduce operation and
maintenance (O&M) costs; (ii) provide opportunities for smart energy efficiency measures and improved balancing of
demand and supply; and (iii) have additional positive impacts on service quality for end users.
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22. The project would leverage ongoing programs in education and health to deliver energy services to such
facilities. Public energy programs have been financed by a few development partners over the past couple of years that
led to a total of approximately 120 electrified health centers and up to 50 electrified schools, and approximately 400
primary schools were provided with CECs. The Government’s performance-based fund (PBF) mechanism supporting health
centers throughout the country will be used to guarantee viability of energy systems in those facilities beyond project life,
while the project will build on the National Canteen Program to provide CECs to those schools in the program.
23. Project design is underpinned by comprehensive, data-driven analytics. With ESMAP support, Burundi is
developing a least-cost geospatial plan, off-grid market assessment, public facilities needs inventory, an energy access
survey and a clean cooking assessment. These studies are informing project preparation and will strengthen
implementation; they will also contribute to the preparation of the Government’s off-grid strategy. The results of these
studies can help strengthen governance and transparency; and establish a future basis for replication by constituting a
useful set of data that can be used by other donors and the private sector to support off-grid interventions.
24. The proposed project benefits a varied group of consumers by creating opportunities to improve the provision
of community services, generate income and enhance productivity in rural areas, and improve consumer welfare.
Health and education facilities, households (including the poor and vulnerable and those headed by women), agriculture
farms, and SMEs will receive enhanced access to energy services. The project will deploy PV-based mini-grids, utilizing
recent trends in PV technology and business models that leverage private sector strengths and efficiencies in constructing,
operating and maintaining these mini-grids. A geospatial analysis funded by ESMAP has already identified approximately
150 potential mini-grids for locations that are not expected to be connected to the national grid in the short term and
mid-term, with the potential to provide electricity to 90,000 customers and at the same time creating economic
opportunities and supporting electrification of public facilities in those communities. The project will also deploy
standalone solar systems and CECs for the improvement in welfare. The market for stand-alone solar systems in Burundi
is estimated to be around 2 million households.20
Component 1: Energy Services for Schools and Health Service Centers (IDA US$27 million equivalent)
25. Under this component, the project will finance the design, installation, maintenance, and replacement of solar PV
system components and institutional CECs in unelectrified schools and health facilities located in remote areas. The
component will enhance the quality of health and education services to the rural parts of the population, with an
estimated 6,300,000 beneficiaries annually once all targeted institutions have been equipped. |