Mini-Grids and Small-Scale Power Embedded Generation Facilities for Off-Grid Communities

View of solar panel in the Farm Gunsbewys, in southern Namibia

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Mini-Grids and Small-Scale Power Embedded Generation Facilities for Off-Grid Communities
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Utilities
Business Model Description

Provide small-scale off-grid / hybrid renewable energy infrastructure that offers access to marginalised communities, including embedded generation, or provide ground- or roof-mounted PV system bundling for household or business use with standardised Power Purchase Agreements (PPAs).

Expected Impact

Provide stable, affordable and clean energy to marginalised off-grid populations for consumptive and productive use.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
Return on equity of 12.3%.
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13) Life on Land (SDG 15)
Sector Sources
  • I) Republic of Namibia, National Planning Commission, 2018, Implementation of Sustainable Development Goals, Voluntary National Review, https://sustainabledevelopment.un.org/content/documents/19880New_Version_Full_Voluntary_National_Review_2018_single_1_Report.pdf. II) Republic of Namibia, National Planning Commission, 2017, Namibia's 5th National Development Plan (NDP5), https://www.npc.gov.na/?wpfb_dl=294. III) Republic of Namibia, Office of the President, 2016, Harambee Prosperity Plan 2016/17 - 2019/20 Progress Report, Goals and Outcomes, https://op.gov.na/documents/84084/572904/HPP+Report+2019/66c2eef8-3b23-45be-bc2c-5e728699057e. IV) African Development Bank Group, 2020, Namibia: African Development Bank approves $121.7 million loan, Euro 3 million grant to support water and sanitation sector, https://www.afdb.org/en/news-and-events/press-releases/namibia-african-development-bank-approves-1217-million-loan-euro-3-million-grant-support-water-and-sanitation-sector-34727. V) Canning, David & Bennathan, Esra, 2000, The Social Rate of Return on Infrastructure Investment, The World Bank, Policy Research Working Paper Series, https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2390. VI) Republic of Namibia, Public Private Partnership Act 4, 2017 Section 40(1), https://laws.parliament.na/cms_documents/public-private-partnership-act-4-of-2017---regulations-2018-353-c96b676b6f.pdf. VII) African Development Bank Group, 2018, 2018 African Economic Outlook, https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/country_notes/Namibia_country_note.pdf. VIII) SDG Center for Africa and Sustainable Development Solutions Network, 2019, Africa SDG Index and Dashboards Report 2019, Kigali and New York: SDG Center for Africa and Sustainable Development Solutions Network, https://sdgcafrica.org/wp-content/uploads/2019/06/SDGS_INDEX_REPORT_2019WEB.pdf. IX) Republic of Namibia, Public Private Partnership Act 4, 2017 Section 40(1), https://laws.parliament.na/cms_documents/public-private-partnership-act-4-of-2017---regulations-2018-353-c96b676b6f.pdf. X) World Bank, 2020, Leveraging Pension Fund Investment for Domestic Development: Namibia’s Regulation 29 Approach, http://documents1.worldbank.org/curated/en/125241594367606090/pdf/Leveraging-Pension-Fund-Investment-for-Domestic-Development-Namibia-s-Regulation-29-Approach.pdf. XI) Ino Harith Capital, Our Partners, https://www.harith.co.za/our-partners-2. XII) Schwab, K, World Economic Forum, 2019, The Global Competitiveness Report 2019, http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf. XIII) Republic of Namibia. Namibian Statistics Agency, 2018, Labour Force Survey 2018 Report, https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NLFS_2018_Report_Final_.pdf. XIV) United Nations, 2018, Accelerating SDG 7 Achievement Policy Brief 12 Global Progress of SDG 7 - Energy and Gender, https://sustainabledevelopment.un.org/content/documents/17489PB12.pdf. XV) Republic of Namibia. Namibian Statistics Agency, 2016, Namibia Household Income and Expenditure Survey (NHIES) 2015/2016 Report, https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NHIES_2015-16.pdf. XVI) DNA Economics, 2021, SAM Multiplier Analysis for the SDG study in Namibia, Six Capitals.
IOA Sources
  • 1) Republic of Namibia, National Planning Commission, 2017, Namibia's 5th National Development Plan (NDP5, https://www.npc.gov.na/?wpfb_dl=294. 2) Republic of Namibia, Office of the President, 2016, Harambee Prosperity Plan 2016/17 - 2019/20 Progress Report, Goals and Outcomes, https://op.gov.na/documents/84084/572904/HPP+Report+2019/66c2eef8-3b23-45be-bc2c-5e728699057e. 3) UNDP / Subnational Human Development Index Database. Namibia, https://globaldatalab.org/shdi/shdi/NAM/?levels=1%2B4&interpolation=0&extrapolation=0&nearest_real=0. 4) Ministry of Mines and Energy, 2015, Support Mechanism to Improve the Electrification of Households in Urban & Rural Namibia, https://www.ecb.org.na/images/docs/Studies/National_Electrification_Mechanism.pdf. 5) Namibia Statistics Agency, 2016, Namibia Inter-censal Demographic Survey Report 2016, https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NIDS_2016.pdf. 6) Global Business Network Program, 2020, Partnership Ready Namibia: Renewable energy, https://www.giz.de/en/downloads/GBN_Sector%20Brief_Namibia_RenewableEnergy_E_WEB.pdf. 7) Electricity Control Board, 2020, Development of a Support Mechanism for Improving the Electrification of Peri-Urban and Rural Areas Report 2 – Impacts and Recommended Options. 8) Electricity Control Board, 2017, ESI Statistical Bulletin 2016, Electricity Access in Namibia, https://www.ecb.org.na/images/docs/Statistical_Bulletin/ESI_Stats_Bulletin_2016.pdf. 9) Ministry of Mines and Energy, 2015, Support Mechanism to Improve the Electrification of Households in Urban & Rural Namibia, https://www.ecb.org.na/images/docs/Studies/National_Electrification_Mechanism.pdf. 10) Republic of Namibia, Electricity Control Board, Net Metering Rules: Electricity Act, 2007, https://www.ecb.org.na/images/docs/Noticeboard/Gazetted%20Net%20metering%20Rules.pdf. 11) Bundesministerium für Bildung und Forschung/Federal Ministry of Education and Research (BMBF) Division Energy, 2019, PROCEED – Pathway to renewable off-grid community energy for development, https://www.bmbf-client.de/sites/default/files/factsheets/PRO_PROCEED_EN.pdf. 12) Electricity Control Board, 2019, ESI Statistical Bulletin 2018 “Electricity Access in Namibia, https://www.ecb.org.na/images/docs/Statistical_Bulletin/ESI%20Statistical%20Bulletin%202018.pdf. 13) Electricity Control Board, 2020, Development of a Support Mechanism for Improving the Electrification of Peri-Urban and Rural Areas Report 2 – Impacts and Recommended Options. 14) Danish Energy Management & Esbensen, 2017, Renewable Energy Market Landscape Study covering 15 countries in Southern and East Africa, Volume 2: Country Profile Stakeholder Maps, https://www.entwicklung.at/fileadmin/user_upload/Dokumente/Regionen/Volume_II_Market_Landscape_-Study_-EEP-SEA_CountryProfiles_StakeholderMaps-1.pdf. 15) GreenCape, 2020, Energy Services Market Intelligence Report, https://www.greencape.co.za/assets/ENERGY_SERVICES_MARKET_INTELLIGENCE_REPORT_20_3_20_WEB.pdf. 16) Andrzej Bielecki, Sebastian Ernst, Wioletta Skrodzka, Igor Wojnicki, 2020, The externalities of energy production in the context of development of clean energy generation, Environmental Science and Pollution Research, 27:11506–11530. 17) Fedgroup Impact Farming, Information Manual Solar, https://www.fedgroup.co.za/assets/downloads/ventures/solar/Information%20Manual%20solar.pdf. 18) International Finance Corporation, 2020, Regulatory and Tariff Review for Distributed Generation in the Commercial and Industrial Sectors in Southern Africa, https://www.ifc.org/wps/wcm/connect/090c58a2-2b98-482e-8c6d-b5931ed793e2/202006-Regulatory-Tariff-Review-Southern-Africa.pdf?MOD=AJPERES&CVID=nbDqlVa. 19) EOS Capital Website, About NIDIF, https://www.eoscapital.com.na/nidif. 20) SUNREF, 2020, SUNREF Namibia: Towards a greener future, https://www.sunref.org/wp-content/uploads/2018/05/Brochure-Sunref-Namibie_AFD.pdf. 21) African Powere Platform, 2021, Rural Electricity Distribution Master Plan for Namibia 2010, https://www.africanpowerplatform.org/resources/reports/southern-africa/namibia/1740-rural-electricity-distribution-master-plan-for-namibia-2010.html. 22) National Planning Commission of Namibia, 2021, Harambe Prosperity Plan 2. 23) USAID Southern Africa Energy Program (SAEP) Tariff Methodology for Mini-Grid Pricing for the Energy Control Board of Namibia Report, June 2020. 24) PROCEED, Pathway to Renewable Off-Grid Energy for Development, 2019, https://www.bmbf-client.de/en/projects/proceed. 25) Green Glimate Fund (GCF), Environmental Investment Fund (IEF), 2015, https://www.greenclimate.fund/ae/eif. 26) Electricity Act 4 of 2017, Republic of Namibia, https://laws.parliament.na/cms_documents/2016---technical-rules-40c94f5c41.pdf. 27) Ministry of Mines and Energy, Solar Revolving Fund, http://www.mme.gov.na/directorates/efund/srf.