Public-Private-Partnerships for Solar Energy in Developing Countries Support Instruments of the Federal Ministry for Economic Cooperation and Development (BMZ) for Private Sector Investments Programs and Case Studies Almuth Dörre (EZ-Scout at the Foreign Trade Center of Bavaria) Joscha Rosenbusch (EZ-Scout at BSW Solar) Intersolar Munich June 19th, 2013
Overview BMZ- EZ- Scout Program A short introduction Development partnerships with the private sector Case Studies Solar Energy
The EZ-Scout Program EZ-Scouts as liaison officers Advise companies, business associations and institutions on instruments of development cooperation, trade promotion and other programs Keep record of the needs and ideas of the private sector and communicate them to BMZ Institutionalize strategic and operational partnerships with business associations and institutions
The EZ-Scout Program Jan. 2011: first implementation of an EZ-Scout currently: 22 EZ-Scouts in action Goal: up to 30 EZ-Scouts Selection of host institutions: 9 Scouts in Chambers of Industry & Commerce and Centres of Foreign Trade ( ): e.g. IHK Berlin, IHK Chemnitz, IHK Hannover 13 in German business associations ( ): Afrika-Verein (German African Business Association), BGA (Federation of German Wholesale, Foreign Trade and Services), DIHK (Association of German Chambers of Commerce and Industry), GWP (German Water Partnership) OMV (German East and Central Europe Association), ZDH (German Confederation of Skilled Crafts), ZVEI (German Electrical and Electronic Manufacturers' Association), BSW (German Solar Industry Association)
Advisory Services include all programs funded by BMZ
Transport, Logistics Thematic Interfaces natural resources management / Biodiversity Environmental Issues Agri-Business Water, Sanitation Health Sectors Renewable Energy / Energy Efficiency Sustainable growth Vocational Training Labour Standards Corporate Social Responsibility
Development partnerships with the private sector
What does developpp.de stand for? The developpp.de programme was initiated by the Federal Ministry for Economic Cooperation and Development (BMZ) and stands for cooperation between the private sector and development cooperation. In development partnerships companies and development organisations jointly plan, finance and implement projects. The implementing development organisations are GIZ, DEG and sequa. The innovativeness of businesses combined with the resources, knowledge and experience of development cooperation creates synergy effects.
Public Private Partnership-instrument for collaboration
Integrated Development Partnerships Africa Facility Fund Fragile States West Africa Ideas competitions Strategic alliances Private partner Sector All companies (local, regional & international) Direct contribution to achievement of Technical Cooperation (TC) project objectives African companies, international companies with a branch office in an African country Sectors of the target countries Ghana, Kenya, Cameroon, Tanzania, Southafrica, Tunisia Companies of the respective country, international companies with a branch office in a respective country Sectors of the target countries Ivory Coast, Liberia, Sierra Leone, (Guinea) German & European companies Term Within project duration max. 3 years max. 3 years max. 3 years max. 3 years Contribution Up to EUR 193,000 Public share possibly more in cooperation agreements Up to EUR 193,000 Public share GIZ 50% Up to EUR 193,000 public share GIZ 50% Up to EUR 200,000 Public share GIZ 50% Acquisition Active acquisition Active acquisition Active acquisition Through ideas competition, GIZ advisory services Public share funded by TC-project Africa Facility Fund Fragile States West Africa German & European companies Supra-regional, often entire sectors, different stakeholders At least EUR 750,000 Total volume GIZ 50% Active acquisition developpp.de
Criteria Compliance: Every development partnership has to comply with the development-policy principles of the German Government. Complementarity: Public and private contributions must be mutually complementary, i.e. cooperation must enable both partners to achieve their objectives more cost-efficiently, effectively and swiftly. Subsidiarity: Public support for the partnership measure is only given if the private partner would not otherwise implement the project and if the project is not a legal necessity. Competitive neutrality: The measure must not distort competition. Private sector's own contribution: The company has to make a substantial contribution to the measure that can be assessed in monetary terms
developpp.de does not offer: Subsidies for business operations Export promotion Venture-capital measures Low-interest loans
Case Studies: Solar Energy
Challenge Mosambique Solar lights for rural areas Phaesun GmbH in cooperation with Sonnenplus GmbH 11/2011 12/2013 Public: 50% of total volume BILD Rechte Maustaste: Größe und Position Größe 4,8 x 7,9, Position H: 0, V: 13,64 Allgemein: Rechte Maust.: Raster und Führungslinien: Raster: 0,1 cm Inadequate power supply in Mozambique is a barrier for development in remote areas. Only 2% of rural population with grid access Off-grid solar energy systems are a promising solution. Missing distribution and service structure for PV Systems Approach Setting up a local distribution network with "Solar Shop" and "Solar Kiosks" for retail of solar systems and lamps and charging of lamps and mobile phones Training of retailers Know-how transfer through training and education of students and technicians in the field of photovoltaic s Equipment of a training facility Impact Infrastructure for distribution and training established 25.06.2013
GIZ El Salvador Deloyment of PV-systems and know-how transfer for local worker Solera GmbH 12/2012 12/2014 Volume: 383.000 Public: 190.000 BILD Rechte Maustaste: Größe und Position Größe 4,8 x 7,9, Position H: 0, V: 13,64 Allgemein: Rechte Maust.: Raster und Führungslinien: Raster: 0,1 cm Challenge High potential but marginal deployment of PV-systems Unclear national regulation for electricity feed in Administration, utilities and industry lack practical experience with PV technology Lack of financing instruments Lack of skilled worker Approach Demonstration roof-top PV plant and grid connection Cooperation with ITCA engineering school: curricula development and apprenticeship for students Development of financing models with local banks Software to calculate economic viability of projects Workshops with utilities and grid operators on Solar Power Distribution of project results
GIZ contribution (selection) El Salvador Deloyment of PV-systems and know-how transfer for local worker Solera GmbH 12/2012 12/2014 Volume: 383.000 Public: 190.000 Financial contribution Facilitation of contacts: authorities, associations, companies Outreach activities and events Impact Market development for PV systems and financing instruments Utilities, industries and businesses are able to plan, finance and implement PV Systems Supply of affordable energy for local business: increased competitiveness and economic development Reduction of CO² Emissions
GIZ Uganda Solar power for mobile phone tower and villages Kirchner Solar GmbH 08/2012 07/2014 Volume: 422.000 Public: 193.000 BILD Rechte Maustaste: Größe und Position Größe 4,8 x 7,9, Position H: 0, V: 13,64 Allgemein: Rechte Maust.: Raster und Führungslinien: Raster: 0,1 cm Challenge Low rate of rural electrification and related barriers for economic development High cost of electricity supply for infrastructure in rural areas, eg. mobile telecommunication Unclear regulations / licensing procedures for IPP and direct electricity sales Approach Cooperation with a local mobile phone provider for operation of pilots Design and testing of a solar container to supply cell tower and village Installation of mini-grid in village and development of a developmentoriented business model, mobile prepaid system and tariff structure Capacity blinding for technicians and training of trainers Strategic market development in the region
GIZ Uganda Solar power for mobile phone tower and villages Kirchner Solar GmbH 08/2012 07/2014 Volume: 422.000 Public: 193.000 BILD Rechte Maustaste: Größe und Position Größe 4,8 x 7,9, Position H: 0, V: 13,64 Allgemein: Rechte Maust.: Raster und Führungslinien: Raster: 0,1 cm GIZ contribution (selection) Financial contribution Knowledge and contacts in the sector Site selection and assessment of electricity demand Permission procedure for licenses etc. with local government and authorities Awareness-raising for end-user National and international roll out of supply, operational and business concept Impact Kirchner: development of a new market segment and business model (electricity supplier) Mitigation of C0² emissions and reduction of energy costs Increased electrification and economic development
Challenge Mexico MEXICO SOLAR PV hybrid Mini-Grid for sustainable electrification of rural areas SMA Solar Technology & Fraunhofer ISE 11/2011 12/2013 Volume: 600.000 Public: 190.000 BILD Rechte Maustaste: Größe und Position Größe 4,8 x 7,9, Position H: 0, V: 13,64 Allgemein: Rechte Maust.: Raster und Führungslinien: Raster: 0,1 cm Mexican government aims at providing access to power in rural off grid areas through PV hybrid mini grids Limited basic knowledge and PV training and teaching facilities / capacities for engineers technicians and project developers Approach Technology and know-how transfer through a demonstration centre Qualification for rural electrification for decision-makers at national and provincial level Installation / operation of a demonstration system with local partners Impact Market development through reliable information on market conditions and technology requirements Establishment of service structures Increased exchange on R&D projects Increased awareness of decision maker on PV hybrid mini grinds: development of framework conditions
Challenge Columbia Sustainable Technology Transfer of Photovoltaik Sunset-Energietechnik GmbH 08/2012 12/2013 Volume: 718.000 Public: 193.000 Growing power demand exceeds generation capacities Abundant but unused potential for solar power generation Amendments of public energy concepts are required Lack of basic knowledge and training and teaching capacities for students, engineers and technicians Approach Establishment of a PV- competence centre at the national educational institution SENA Design and installation of adapted on- and off-grid demo PV Plants Training of Trainer for PV for SENA, utilities and authorities Public awareness Impact Decision maker are informed on solar technology and able to feed in knowledge in policy discussions Increased employability for technicians
Contact Ms. Almuth Dörre Development Cooperation Consultant Foreign Trade Center of Bavaria almuth.doerre@awz-bayern.de Mr. Joscha Rosenbusch International Cooperation Officer German Solar Industry Association (BSW Solar) rosenbusch@bsw-solar.de Further Information www.bmz.de/wirtschaft www.developpp.de