United Nations Development Programme Country: Sudan PROJECT DOCUMENT*
Project Title: Promoting Utility Scale Power Generation from Wind Energy
UNDP Strategic Plan Primary Outcome (3.1): Countries have strengthened institutions to progressively deliver universal access to basic services. Align with latest UNDP Strategic Plan
UNDP Strategic Plan Secondary Outcome (1): Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded
UNDAF/CPAP Outcome: Outcome 2.2: Government and stakeholders have evidence-based policies, strategic plans and mechanisms to ensure an enabling environment for improved basic services; and people in Sudan, with special emphasis on populations in need, have access to equitable and sustainable quality basic services.
UNDAF/CPAP Outcome: Outcome 2: Population vulnerable to environmental risks and climate change become more resilient and relevant institutions are more effective in the management of natural resources
CPAP Output: Output 2.2: Investment in green energy and access by needy communities to sustainable energy improved
Executing Entity/Implementing Partner: Ministry of Water Resources & Electricity
Implementing Entity/Responsible Partners: Ministry of Environment, Forestry & Natural Resources General Directorate of Energy Affairs - Ministry of Petroleum Higher Council for Environment & Natural Resources National Energy Research Centre – Ministry of Sciences and Communications
* For UNDP-supported, GEF-financed projects as this includes GEF-specific requirements
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Table of Contents List of Abbreviation & Acronyms ...... 4 List of Annexes ...... 5 1. Situation analysis ...... 6 1.1. Context and Global Significance ...... 6 1.2. Baseline, barriers and current government policy to address the root causes and threats ...... 11 1.3. Institutional framework and stakeholder analysis ...... 15 2. Strategy ...... 21 2.1. Project Objectives, Outcomes, and Outputs ...... 21 2.2. Key indicators, risks and assumptions ...... 34 2.3. Expected benefits, design principles and strategic considerations ...... 37 2.4. Project rationale and policy conformity ...... 37 2.5. Country ownership: country eligibility and country drivenness ...... 38 2.6. Cost-effectiveness ...... 39 2.7. Sustainability ...... 40 2.8. Replicability ...... 40 3. Project Results Framework ...... 42 4. Total budget and workplan ...... 45 5. Management Arrangements ...... 51 6. Monitoring Framework and Evaluation ...... 53 7. Legal Context ...... 59 8. Annexes ...... 60 8.1 Risk Analysis ...... 60 8.2 Stakeholder involvement plan ...... 64 8.3 Terms of Reference for Project Personnel...... 65 8.4 GHG Reduction Calculations ...... 69 8.5 Consideration of Bird Migration and Ecological Impacts ...... 70 8.6 Environmental and Social Safeguards ...... 73 8.7 Letters of Co-financing ...... 77
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List of Abbreviations & Acronyms CO UNDP Country Office
CO2 Carbon dioxide CSP Concentrating Solar Power EE Energy Efficiency EENS Expected Energy Not Supplied GDP Gross Domestic Product GEF Global Environment Facility GHG Greenhouse Gas GT Gas Turbine HCENR Higher Council for Environment and Natural Resources IEA International Energy Agency IPP Independent Power Producer M&E Monitoring and Evaluation MEM Ministry of Energy and Mining MEFPD Ministry of Environment, Forestry and Physical Development MoM Ministry of Mining MoP Ministry of Petroleum MoSC Ministry of Science and Communications MWRE Ministry of Water Resources and Electricity MRV Monitoring, Reporting and Verification MW Megawatt NAMA Nationally Appropriate Mitigation Action NEC National Electricity Corporation NERC National Energy Research Centre NGO Non-Governmental Organisation O&M Operations & Maintenance PIR Project Implementation Review PMU Project Management Unit PPG Project Preparation Grant PPP Public Private Partnership PB Project Board PV Photovoltaic QPR Quarterly Progress Report RCU UNDP Regional Coordination Unit RE Renewable Energy RTA UNDP Region-Based Technical Advisor SWH Solar water heater TPR Tripartite Review TTR Terminal Tripartite Review TWh Terawatt-hour WB World Bank UNDAF United Nations Development Assistance Framework UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change
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List of Annexes
8.1 Off-line Risk Log 8.2 GHG Calculations 8.3 Terms of Reference for Project Personnel 8.4 GHG Reductions Calculation 8.5 Consideration of Bird Migration and Ecological Impacts 8.6 Environmental and Social Safeguards 8.7 Letters of Co-financing
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1. Situation analysis
1.1. Context and Global Significance
1. Like many developing countries, Sudan has a shortage of electricity. Approximately 35% of the population has access to electricity (MWRE-Renewable Energy Master Plan 2013). Even then, it is not reliable and experiences regular power outages. Hydro-power has the largest share of energy generation. The potential to expand hydro-power to meet future needs is limited. Sudan does not have significant oil or gas production and as a result will have to turn to importation of fossil fuels to meet future energy needs. Climate change threatens to affect rainfall patterns on which Sudan relies for the water that generates its hydro-power. This further emphasises the need for Sudan to diversify its energy sources. The project seeks to address these problems by promoting the use of wind energy in Sudan.
2. Sudan currently has a generation capacity of 2,723 MW of power (ibid), has no wind generation capacity and no grid-connected solar capacity. Publicly-owned utilities own all of the power generation facilities, transmission and distribution lines in Sudan. The Government owns 5,984 km of 220 kV transmission lines and 965 km of 500 kV transmission lines. Approximately 35% of Sudan's population has access to electricity1. In 2012, the power consumption per capita was 233 kWh/ year.2 There are no independent power producers (IPPs) in the country, though initiatives are underway to promote private investment in power generation. This project seeks to support those initiatives where they relate to wind power.3
3. Electricity generation, consumption and losses for the period between 2000 and 2010 are shown in Figure 1.
Figure 1: Electricity generated, consumed and distribution losses 2000-20104, Sudan
1 UNESCO (2009), Electricity Access Rates. 2 Arab Union of Electricity (2012), Statistical Bulletin. 3 RCREEE (2013), Arab Future Energy Index. 4 US EIA (2013), Sudan and South Sudan Country Profile.
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4. In 2012, the power transmission losses were approximately 4%, and distribution losses were approximately 18%, such that, in total, roughly one-fifth to one-quarter of the electricity generated is lost in transmission and distribution.5 As a result, Sudan must generate 25% to 33% (MWRE 2013 – Long Term Power System Plan) more power than is consumed to overcome the transmission and distribution losses, and, in the process, emit associated greenhouse gases.
5. Forty-four percent of Sudan's electricity is generated from fossil fuels. The principal fossil fuels currently used for Sudan’s power generation are heavy and light fuel oils, with shares of 61% and 39% respectively of the fossil fuel used for power generation in Sudan.6 Hydro-power plants represent 56% of Sudan's installed power generation capacity, more than any other technology.7 Figure 2 shows the installed generation capacity in Sudan by technology. To meet the Government's target of 75-80% electrification by 2031, the Government plans to install 12,000 MW of additional generation capacity by 2031. This is to include 1,582 MW of renewable energy (other than large-scale hydro-power), with approximately 650 MW of wind energy. 8
21% Hydro-power 2% Diesel generators Combined cycle 56% 16% Gas turbines Steam turbines
5%
Figure 2: Installed power capacity in Sudan9
6. The major hydro-power installations in Sudan are: Roseires, Sinnar, Jebel Aulia, Khashm el-Girba and Merowe. The most recent, Merowe, commissioned in 2009, has a capacity of 1,250 MW and represents 82% of the total hydropower capacity and 46% of the country's overall generation capacity.10 The total amount of hydro-power generated in 2012 was 5,365 GWh11.
7. The total technically feasible potential for hydro-electric power generation is 4,920 MW (or 24,132 GWh/year)12, implying that, in the long-term, the bulk of expansion in generation capacity will come from sources other than hydro. Sudan's long-term development plan observes that 8,675 MW of additional thermal power plants will be
5 Arab Union of Electricity (2012), Statistical Bulletin. 6 Arab Union of Electricity (2012), Statistical Bulletin. 7 Government of Sudan (2013), Second National Communication to the UNFCCC. 8 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan. 9 Arab Union of Electricity (2012), Statistical Bulletin. 10 US EIA (2013), Sudan and South Sudan Country Profile. 11 Arab Union of Electricity (2012), Statistical Bulletin. 12 National Electricity Corporation (2004), NEC Medium-Term Development Plan: 2005-2010.
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needed by 2030.13 The technologies for thermal electricity generation have been identified as combined cycle gas turbines (CCGTs), low-sulphur diesel (LSD) generators, and coal-fired power plants. While these plants will provide much-needed electricity, they will only exacerbate the country’s energy security problems and lead to rising energy-related greenhouse gas emissions.
Figure 3: Cumulative installed renewable energy capacity by type, 2014 - 203114
8. Sudan’s medium-term development plan echoes the trend towards thermal power generation. In June 2011, MWRE released its Medium Term (2012-2016) Power System Development Plan. It emphasizes least-cost energy solutions towards achieving the Government of Sudan's electricity access targets. These targets and objectives include, among others: (i) an increase in the available generation capacity from 2,232 MW in 2011 (with 2,532 MW installed capacity) to 4,161 MW (with 5,180 MW installed capacity), (ii) increasing the electrification rate from 27% to 45% by 2016 (rising to 75-80% by 2031), (iii) raising per capita consumption from 233 kWh to 572 kWh, and (iv) extension of the national grid from 6,246 km to 9,100 km. The Medium Term Power System Development Plan also targets the addition of 551 MW of renewable electricity to the national mix over the medium-to-long term.
9. The Government of Sudan has made considerable steps towards opening up major public service sectors to private investment, including the power sector, to help serve its population of 37 million.15 It has already put in place incentives to encourage the participation of Independent Power Producers (IPPs) in the power sector. Sudan's Investment Encouragement Act, first passed in 1999 and later updated in 2003, 2007 and 2013 identifies the power sector as a major target for investment. It specifies power projects, and especially renewable energy power projects, as having strategic importance. As such, they are eligible for incentives such as exemption from import duties and customs. Their profits are also exempt from corporate income taxes for a decade.16 Sudan's power sector remains Government-owned but has been restructured to reflect a private-sector structure. Independent companies have been established with
13 National Electricity Corporation (2006), NEC Long-term Power System Planning Study. 14 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan. 15 Central Bureau of Statistics, Sudan (2014) 16 RCREEE (2013), Arab Future Energy Index.
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responsibilities for power generation, transmission and distribution, including a single company that owns and operates the Merowe Dam. This structure serves to further establish the framework for private sector participation.
10. The electricity tariffs to consumers in Sudan, residential and industrial, are approximately 8.2-8.3 US cents/kWh17, whereas the cost of generation from wind is expected to be in the range of 9.5-13 US cents/kWh, based on a discount rate of 10%.18 Sudan's weighted average fuel cost for thermal power is approximately 11 US cents/kWh19. At a discount rate of 10%, the cost of generation from fossil fuels in Sudan is 11-14 US cents/kWh, depending on the source of fuel (LNG, NG).20 Thus, the generation cost of wind energy from the best locations in Sudan is competitive with the fuel saving cost from fossil fuel, meaning that the Government realizes savings by operating a wind power plant compared with the average fossil fuel plant (other than coal). Wind energy presents other advantages, such as diversifying Sudan's energy sources and reducing the country’s reliance on imported fossil fuels. Wind also offers the advantage of not being subject to fluctuations in the global price of gas and oil.
11. The following figure shows power consumption in residential, commercial and industrial sectors. The residential sector is the largest consumer, responsible for 52% of consumption, with commercial, industrial and others splitting the remaining 48% roughly equally.
Figure 4: Power consumption in Sudan21
12. With the secession of South Sudan in July 2011, Sudan lost 75% of its oil resources. This has further increased the urgency of the implementation of Sudan’s Renewable Energy Master Plan (REMP), to reduce Sudan’s dependence on fossil fuel. Sudan has abundant wind and solar resources, as shown in the resource maps below, but currently lacks the capacity to utilise these resources for power generation.
17 RCREEE (2013), Arab Future Energy Index. 18 Lahmayer International (2011), Feasibility Study for 100 MW Dongola Wind Farm. 19 Lahmayer International (2011), Feasibility Study for 100 MW Dongola Wind Farm, p.141. 20 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan, pp 17. 21 Arab Union of Electricity (2012), Statistical Bulletin.
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13. A wind measurement campaign was started in Northern Sudan in 2002 in order to identify areas of high wind energy potential and investigate the feasibility of electrical power generation by wind energy. Subsequent wind measurements have focused on other areas of high potential. A number of studies confirm that Sudan has considerable wind energy resources, with annual average wind speeds in selected locations in the range of 7-8 m/s, particularly in North State, north of latitude 12˚ N and along the Nile valley.22 In total, there is a potential of 5,000 MW of utility-scale wind energy generation in Sudan.23 The principal sites for wind energy have been identified as: (1) the central northern part of Sudan with Dongola at its centre; and (2) the Red Sea region, with Port Sudan as its major city.
Figure 5 Calculated annual average wind speed at 50 m height in Sudan (Red ovals show areas with the highest potential.24 At 60 m height, the winds speeds in Dongola, Nyala and the Red Sea region are 7.2, 7.9, and 7.0 m/s, respectively.25 )
14. Based on the wind speeds in Dongola, Nyala, and the Red Sea region of 7-8 m/s, and the expected capital costs of wind power, electricity generation from wind is economic in these areas. As part of the UNDP-implemented, GEF-financed project, a more accurate wind map will be developed to help identify areas of high wind potential. 26
22 Government of Sudan (2011) Renewable Energy Sector Related Policies, in Draft Second National Communication to the UNFCCC. (courtesy of Secretary General, Higher Council for Environment and Natural Resources). Please revisit the location of this text 23 KEMA (2009), Strategic Options for Renewable Energy in North and South Sudan. 24 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan. 25 Altaif, Ahmed, Renewable Energy Director, Ministry of Water Resources & Electricity (2013), Renewable Energy Projects in Sudan presentation: http://www.slideshare.net/rcreee/rcreee-ener-menasudan-renewable-energy-projects21082013. 26 The present resource map is generated based on extrapolation of satellite data and limited ground data. As part
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Figure 6 Annual available global horizontal irradiation in Sudan.27
15. The majority of Sudan receives solar insolation greater than 2,300 kWh/m2/year, which is considered excellent for isolated and grid connected power generation systems. To take advantage of Sudan’s plentiful solar resources, the Government is planning to develop four solar projects with a total capacity of 20 MW: Khartoum PV plant (10 MW), Nyala PV plant (5 MW), Al Fashir PV plant (3 MW) and Al Geneina (2 MW).28 Thus far, these projects have not been initiated.
1.2. Baseline, barriers and current government policy to address the root causes and threats
16. The Ministry of Water Resources and Electricity (MWRE) has succeeded the Ministry of Electricity and Dams (MED) as the body responsible for the electricity sector in Sudan. MWRE is planning the installation and commissioning of four utility-scale wind farms by 2020: Dongola (100 MW), two Red Sea wind farms (Tokar and Port Sudan, 180 MW), Nyala (20 MW) and Khartoum (20 MW).29 This time-frame coincides with the of the project, a wind map with measurements at wind turbine hub-heights, currently about 80 metres, will be developed. The result will be a map better able to predict the usable wind resource. 27 Lahmeyer International (2013), Long and Medium Term Power System Plans. 28 RCREEE (2012), Sudan Renewable Energy Country Profile. 29 Following the guidance of the GEF Secretariat during PIF review, the Dongola and Red Sea wind farms form the baseline project for the purposes of the UNDP-implemented, GEF-financed project. The Nyala wind farm is excluded: it is relatively small, is due to commence after Dongola (and hence lacks Dongola’s symbolic importance as Sudan’s first utility-scale wind farm), and has few additional learning or replication benefits beyond those provided by the Dongola wind farm. Moreover, the Nyala wind farm is connected to a local grid but not the national grid and hence lacks national impact and does not offer potential lessons-learned from integrating wind energy into
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implementation of the UNDP-implemented, GEF-financed project. Table 1 summarises the details of the wind farms and their status.
17. For the purposes of the Global Environment Facility, the baseline project consists of the Dongola and Red Sea sites. Hence, the baseline project has a total installed capacity of 280 MW that is expected to produce 849,695 MWh of renewable electricity annually when all the sites are operational. The cost of these wind farms is approximately US$523 million.
18. To enumerate the added value (incremental reasoning) of the UNDP-implemented, GEF- financed project, it is necessary to establish the rationale and orientation of the project for the market development of wind energy in Sudan. As will be discussed below, the market development for wind energy faces significant barriers in Sudan. The baseline project provides a unique opportunity to start addressing these barriers with a view to favouring private-sector investment in the market development of wind energy in the medium-to-long term. Some of these barriers, namely those related to the transfer of nationally-appropriate wind energy technologies, will be addressed directly in conjunction with the baseline project. In order to generate market acceptance at a time when wind technology does not exist in Sudan, it is crucial to first demonstrate the technological viability of wind energy in the local context. Any technological failure at the early stages in wind energy development will only undermine the acceptance of the technology in Sudan, resulting in an unwanted increase in yet more market barriers. Using the favourable conditions generated by the imminent Dongola wind farm to promote wind energy, other – broader – barriers will be addressed by the UNDP- implemented, GEF-financed project in order to pave the way for the market development of the Red Sea wind farm and beyond.
Figure 7 Location of the Dongola wind farm indicated by the green arrow
the national grid.
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Figure 8: View to the west across the Dongola wind farm site
Figure 9: Wind speed distribution at 30 m for the Dongola site. Average wind speed at 60 m above ground level is 7.2 m/s and higher for 80 m.
19. Although wind energy is mature and technologically viable, there are currently no applications of wind turbines at any scale for the generation of electricity in Sudan. The experience of Sudan with wind turbine technology has thus far been limited to small- scale mechanical water pumping.
20. The key focus of the UNDP-implemented, GEF-financed project is to help Sudan understand the planning and operational requirements of wind power, to gain experience with installation and grid integration issues, and to employ policy options that promote wind energy development within the broader context of low-carbon, climate- resilient development. GEF funding will thereby create the appropriate technological, institutional, policy and capacity environment that will enhance the probability of
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success of the baseline wind farms and establish the pre-conditions for replication elsewhere in Sudan.
21. The baseline wind farms currently face technological barriers, which have not been taken into consideration in their design. If not addressed decisively, these technological barriers will enhance the risk of failure of these demonstration wind farms, thereby reducing future acceptance of the technology. In particular, the national grid of Sudan is relatively unstable, with variations in both frequency and voltage (during visits to Sudan, power outages were observed as well as dimming of the grid voltage levels)30. The Ministry of Water Resources and Electricity (MWRE) has experience in synchronising power generated from different conventional sources that provide base load. However, MWRE does not have experience in synchronising the grid with power generated from a variable source such as wind. Although the power system has improved in recent years, grid stability to accommodate power generated from a variable source such as wind is still inadequate.
22. Extensive consultations have been held in Sudan with MWRE and the North State Government where the planned Dongola farm is located, through two missions to Sudan as part of the project preparation phase. MWRE confirms that the issue of the interface electronics has not been considered (or budgeted for) for any of the baseline wind farms, and that the now-completed tender process for the Dongola wind farm reflects this omission. Further, MWRE specifically emphasises the need for GEF assistance in this area. In the absence of such interface electronics, it is highly probable that the grid will face islanding problems that will lead to load management problems and further grid instabilities.
Table 1: Baseline wind farms in Sudan Included as co-financing for the Installed Electricity Expected Wind farm Status of Status of purposes of capacity generated commissioning project feasibility study financing the UNDP- (MW) (MWh/yr) date implemented, GEF-financed project? Dongola 100 300,917 In phases Completed, will MWRE will Yes 2014: 5 MW be updated as finance in 2015: 20 MW part of the stages 2016: 25 MW UNDP- 2017: 25 MW implemented, 2018: 25 MW GEF-financed project (total 100 MW) Nyala 20 64,006 2018 Completed In the process No (not part of of seeking the baseline funding project) Red Sea 180 576,054 2018 – 2020 Pre-feasibility Not yet No (Tokar, Port study has been secured Sudan) completed (US$310 million capital cost anticipated) Khartoum 20 47,000 2016 – 2019 Land leasing Not yet No process Total 320 960,701
30 Al Jazeera, 11 March 2014, Sudan's bid to combat power outages, http://www.aljazeera.com/video/africa/2014/03/sudan-bid-combat-power-outages-2014311193932109307.html
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1.3. Institutional framework and stakeholder analysis
23. There are four key stakeholders involved in the development and deployment of power projects in Sudan. These are the Ministry of Water Resources and Electricity (MWRE); the Ministry of Petroleum (MoP); the Higher Council for Environment and Natural Resources (HCENR), under the Ministry of Environment, Forestry and Physical Development (MEFPD), which is responsible for assessing the environmental impacts of projects and issuing the appropriate permits; and the National Energy Research Centre (NERC), which has responsibility for the development of novel energy resources and has a division dedicated to wind energy. Each key stakeholder is discussed further below.
24. The Ministry of Water Resources and Electricity (MWRE) is the Government body responsible for electric power in Sudan, and the National Implementing Partner of this project. MWRE is responsible for implementing the wind farms described in the project, as well as being the main counterpart for the policy and regulatory reforms described. MWRE will also be the host to the central unit (“one stop shop”) supporting private- sector investors in wind power in Sudan. MWRE will carry out the following in the context of the UNDP-GEF project:
Implementation of wind farms Support to the policy and regulatory reforms Use of Dongola implementation as a training facility to support national capacity building Hosting a central point to support investors in private wind power (a “one-stop shop”) Installation and monitoring of wind measuring equipment Data analysis and reporting Site selection and preparation Technical economic and environmental studies Building the local capacity for wind installation operation and maintenance
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The Minister
Under-Secretary Electricity Regulatory Authority
Sudanese Sudanese Sudanese Sudanese Merowe Electricity Electricity Thermal Hydro Dam Transmission Distribution Power Power Electricity Company Company Generating Generation Company Company Company
General General Directorate General General General Directorate of Electricity Directorate Directorate of Directorate of Financial Generation Using of Investment, of Policies, and Human Atomic Energy and International Finance and Planning Resources Renewable Energy Cooperation Contracts and Projects Sources
Figure 10: Organisational chart of Ministry of Water Resources and Electricity, 2014, Sudan. . The unit concerned with the present project is highlighted.
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25. The Ministry of Petroleum (MoP) was created in 2010 through the split of the Ministry of Energy and Mining into three separate ministries: the Ministry of Water Resources and Electricity, the Ministry of Petroleum, and the Ministry of Mining. Under the MoP's General Directorate of Energy Affairs is the Renewable Energy Directorate. The latter has been active in promoting and developing a wind energy atlas since 2003. Ongoing and planned MoP activities in this regard include:
Installing wind energy masts in the various parts of Sudan (in Toker in Red Sea State, Nyala in Western Darfur State and Dongola in Northern State). Collecting and analysing wind energy data. Developing the wind atlas
Figure 11: Organisational chart of Ministry of Petroleum, 2014, Sudan. The unit concerned with the present project is highlighted.
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26. Higher Council for Environment and Natural Resources (HCENR) - The Higher Council for Environment and Natural Resources oversees the application of environmental laws and regulations to all development projects in Sudan, and has particular responsibilities in the climate change area. HCENR serves as the Designated National Authority (DNA) for the Clean Development Mechanism (CDM). It is also the focal point for the National Appropriate Mitigation Action (NAMA31) Focal Point and UNFCCC Focal Point for Sudan. With UNDP support, HCENR has been developing standardised baselines for Sudan. HCENR has also developed a Technology Needs Assessment (TNA) for Climate Change Adaption and Mitigation, funded by the GEF. In the context of the UNDP-implemented, GEF-financed project, HCENR will participate in implementation through provision of the following services:
o Training and participation in conducting EIAs for wind projects, specifically items of special concern to wind farms such as bird and bat studies. o Awareness-raising and mobilisation to promote wind applications for power generation. o Advocacy for wind energy application as a clean source of energy. o Assistance to the design and implementation of the Nationally Appropriate Mitigation Action (NAMA) elements of the UNDP- implemented, GEF-financed project.
Figure 12: Organisational chart of the Ministry of Environment, Forestry and Physical Development, 2014, Sudan.
31 The National Appropriate Mitigation Action (NAMA) is an online platform operated by the UNFCCC Secretariat. Its purpose is to increase opportunities for implementation of and recognition for carbon mitigation actions in developing countries.
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27. The National Energy Research Centre (NERC) has been active in promoting and developing wind energy technologies for small-scale applications such as water pumping since its establishment in 1972. NERC has a special department for wind and mini-hydro equipped with instruments and a mechanical workshop. The activities of the Wind Department include:
Research in applications of wind technologies Resources inventory, assessment and evaluation Supervising the manufacturing of wind models for research purposes in universities Training of students and the private sector in wind energy technologies and applications Teaching wind energy courses to undergraduate and postgraduate students in a number of Sudanese universities
The Minister
General Directorate Undersecretary for Renewable Energy
Africa City of Atomic Energy National Energy National Centre Technology Commission Research Centre for Research
Solar Energy Wind and Biomass Technology Development Department Mini-hydro Department and Dissemination Department Department
Figure 13: Organisational chart of the Ministry of Science and Communications, 2014, Sudan. . The unit concerned with the present project is highlighted.
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Table 2: Stakeholder roles and co-finance amounts for wind project 2014 Sudan Co-financing Stakeholder Role Amount ($) MWRE o Implementation of wind farms 213,000,000 o Support to the policy and regulatory reforms o Use of Dongola implementation as a training facility to support national capacity building o Hosting a central point to support investors in private wind power (a “one-stop shop”) o Installation and monitoring of wind measuring equipment o Data analysis and reporting o Site selection and preparation o Technical economic and environmental studies o Building the local capacity for wind installation operation and maintenance
MoP o Installing wind energy masts in the various parts of Sudan 250,000 (in Toker in Red Sea State, Nyala in Western Darfur State and Dongola in Northern State). o Collecting and analysing wind energy data. o Developing the wind atlas
HCENR o Training and participation in conducting EIAs for wind 200,000 projects, specifically items of special concern to wind farms such as bird and bat studies. o Awareness-raising and mobilisation to promote wind applications for power generation. o Advocacy for wind energy application as a clean source of energy. o Assistance to the design and implementation of the Nationally Appropriate Mitigation Action (NAMA) elements of the UNDP-implemented, GEF-financed project.
NERC o Research in applications of wind technologies 250,000 o Resources inventory, assessment and evaluation o Supervising the manufacturing of wind models for research purposes in universities o Training of students and the private sector in wind energy technologies and applications o Teaching wind energy courses to undergraduate and postgraduate students in a number of Sudanese universities
UNDP Project implementing agency 250,000
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2. Strategy
2.1. Project Objectives, Outcomes, and Outputs
28. The objective of the project is to reduce greenhouse gas (GHG) emissions by promoting the use of wind energy in Sudan. The project will provide direct technical assistance to the Dongola wind farm and will aid in the replication of experiences from the Dongola wind farm to be applied to the Red Sea wind farms and subsequent wind farms. The project also aims to put in place legislation and a framework to promote private sector involvement in renewable energy in Sudan.
29. The Dongola wind farm will be owned and operated by MWRE. Future wind farms, in particular the planned wind farms on the Red Sea, are intended to be privately owned and operated as IPP projects, provided the appropriate legislation, guidelines, regulations and experience are in place to support their development as such. An outcome of the UNDP-implemented, GEF-financed project is to enable the Government of Sudan to tender future wind farms as IPP projects.
30. The project preparation process involved extensive stakeholder consultation through two missions (five-days each) to Sudan, including consultations in the capital, Khartoum, and in North State capital, Dongola . The consultations included an inclusive workshop held at MWRE with relevant stakeholders as well as consultation with the North State Government and visits to the Dongola site. A site inspection was undertaken by an international ornithological and ecological expert to address items not included in the present Environmental Impact Assessment (EIA) for the Dongola project, notably the issue of the wind farm’s potential impact on resident and migrating birds. Initial indications are that the site does not pose an ecological threat; nonetheless, appropriate ecological surveying will take place as part of the UNDP-implemented, GEF-financed project, both for the benefit of the Dongola wind farm and also so as to establish protocols and capacities to implement similar surveys at future wind farm sites. As a result of the extensive stakeholder consultations and comments received, which are reflected in the project design, the project has considerable ownership by the relevant entities and stakeholders in Sudan.
31. The UNDP-implemented, GEF-financed project will advance the baseline scenario in Sudan by creating a technical and regulatory basis for the development of wind power specifically and renewable energy in general, as many of the underlying regulations are similar. The project will support existing initiatives, such as the draft Electricity Law, the Investment Law, and the application of lessons-learned in Dongola in the construction of the Nyala and Red Sea wind farms. The experiences gained in Dongola should serve to reduce the risk of investing in wind farms in Sudan and help encourage private-sector investors to participate.
32. The project provides a series of distinct and coordinated initiatives to achieve:
Support for the construction of the Dongola wind farm in a manner that follows international norms and best practices with respect to the wind farm and the electricity grid; Support for a regulatory framework that paves the way for the implementation of wind farms throughout Sudan to help meet the country’s energy needs for sustainable development through Government and private-sector participation;
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Capacity building to establish the technical and regulatory capacities within Sudan to promote the development of wind farms; A replication plan to both promote the replication of wind farms throughout Sudan and support their replication by providing distilled lessons and tools from the implementation of Dongola.
Outcome 1: Grid-connected power generation from wind farm introduced.
33. This outcome will provide assistance to the development of the Dongola wind farm, specifically in supporting the construction of the wind farm in phases, the grid interconnection aspects of the wind farm, and the development of a set of guidelines for replication of wind farms throughout Sudan. The Government is implementing the wind farm in phases, with 5 MW to be built in 2014, 20 MW in 2015, and 25 MW to be built in each year between 2016-2018, to reach the 100 MW total. The phasing of the Dongola wind farm implementation introduces challenges and opportunities. The UNDP- implemented, GEF-financed project will help to address some of the challenges and take advantage of the opportunities that arise.
34. The principal challenge lies in planning and procurements for a project that will be implemented in stages over five years rather than in a single stage. Wind farms are often designed in conjunction with the selected turbines and laid out in a configuration so as to produce the optimum amount of power for a given site. Considerations will have to be made to design a wind farm that will be implemented in phases, and for which the turbines to be purchased in later phases may not be known in advance as the tendering will not have occurred. A strong design team and project management will be needed to ensure the smooth development of the project. Aside from the technical challenges, there are also procurement challenges with respect to modifying a contract that was initially intended to be 100 MW in a single phase to now be phased over five years, and ensuring that pricing remains competitive.
35. The opportunities arise in learning throughout the implementation process. Whereas typically lessons are learned from one project to be utilised in a future project, in this case lessons learned in the first phase can be immediately applied in subsequent phases. It also allows implementation to begin immediately, with minimal additional studies since the issues associated with the first-phase 5 MW wind farm are quite different from those for a 100 MW wind farm. Some of the studies performed earlier for the Dongola wind farm have overlooked significant aspects, such as evaluation of the effects on bird life in the EIA or grid integration aspects in the feasibility study. The UNDP-implemented, GEF-financed project will support these studies and therefore enhance the operational and environmental robustness of the wind farm.
36. With Sudan’s relatively small grid capacity, upon completion of the Dongola wind farm the installed wind capacity will be approximately 3% of the total installed capacity. At times of high wind energy output and low overall loads, wind penetration on the grid may reach 10%. On the other hand, Sudan has excellent hydro-power penetration, with approximately 58% of installed capacity and 79% of generated energy coming from hydro-power (MWRE 2013 – Long Term Power System Plan). There is thus excellent potential to use the hydro-power to stabilise a grid with a large percentage of variable renewables, whether wind or solar. This will allow Sudan to surpass one of the obstacles to development of significant renewable energy capacity in countries with relatively small grid capacities. This stabilising and facilitating role of hydro-power has hitherto not
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attracted any attention, but it will be addressed as part of the UNDP-implemented, GEF- financed project.
37. A grid study will be carried out for the Dongola wind farm, with particular attention given to the interconnection equipment and grid interface electronics. Support will also be provided to ensure that the wind farm data is made available to the national load dispatch centre, which manages power plant dispatch throughout Sudan. The load dispatch centre relies on short, medium and long-term forecasts of the load to balance supply and demand on the network. The role of the load dispatch centre, and its reliance on information and the availability of proper equipment at the wind farms, will increase as the amount of wind energy connected to the grid increases. The load dispatch centre will also have a need for forecasting wind generation in the way it does loads, and the ability to maintain spinning reserves (or hydro-power reserves) to compensate for fluctuations. Grid considerations have not been taken into account for the Dongola wind farm and a grid interconnection study has not been undertaken. The work done as part of this output will play a critical role not only in maximising the benefits from the Dongola wind farm, but in laying the groundwork to allow Sudan to connect increasing amounts of wind energy while managing a smoothly operating grid.
38. As part of this outcome, the wind farm implementation specifications will be reviewed in light of the project phasing and grid connection requirements. The specifications will be amended to include equipment and procedures for grid connection and monitoring and evaluation requirements. Appropriate supervision of construction will also be included to ensure that the outcomes are as intended in the specifications.
39. Unlike conventional power plants, where the cost of energy produced is directly related to the fuel burned, renewable energy power plants (including hydropower) are capital- intensive and thereafter fuel is free. It is therefore in the interest of the electricity system to maximise the operation of renewable energy plants. The operation, maintenance and management of renewable energy plants to maximise their outputs therefore plays a significant role in making the electricity they generate cost-effective. To help achieve optimal operation, Outcome 1 includes training for MWRE staff and project staff on project implementation and management, and operational best practices and monitoring, including such local specific items as grid interaction32 to maximise the wind energy generated, and maintaining turbine blade efficiency in a dusty climate which can erode efficiency.
40. To streamline future wind farms, this project outcome will focus on the development of standardised guidelines and procedures for future wind farms. These guidelines will be developed during the implementation of the Dongola wind farm to make sure that the experiences gained from Dongola are well encapsulated for future wind farms. Guidelines will be divided into technical and financial. Technical guidelines will include EIA guidelines, tools for the assessment of identified Red Sea wind farms, and template tender documents and proposal materials for investors. The financial guidelines for renewable energy will include banking proposal preparation; training to support negotiations with investors; and regional development and bottle-neck issues (e.g. logistical/accessibility constraints). In effect, the UNDP-implemented, GEF-financed
32 Wind power plants, like all plants on a network, affect the operation of the network. Because wind power plants depend on the wind rather than operator input they must be regulated to control, for example, power outputs, ramp rates, frequency control and voltage control so as not to inject undesirable dynamics onto the power grid.
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project will lay the groundwork for a healthy private-sector IPP wind energy market to develop in Sudan.
41. In cooperation with MWRE, a framework policy for a feed-in tariff will be developed; and in conjunction with HCENR, a NAMA will be developed around the feed-in tariff. HCENR has officially notified the UNFCCC that the UNDP-implemented, GEF-financed project will be developing a Feed-in-Tarrif (FiT) as a NAMA, and this information has already been submitted to the NAMA Registry. A set of guidelines will be established for NAMA eligibility and design criteria. HCENR will act as the national coordinating institution and quality assurer for the NAMA. For the purpose of calculating emission reductions in the context of the NAMA, a tool for annually updating the emission factor of the national electricity system, based on the established CDM tool for this purpose, will be developed.
42. The UNDP-implemented, GEF-financed project will significantly advance the state of environmental impact assessment needed for wind farms in Sudan. A significant part of that advancement is with respect to evaluation of the ecological impact of wind farms, particularly on avian species. The UNDP-implemented, GEF-financed Migratory Soaring Birds project33 has produced a significant body of work which, prior to this project preparation, had not been utilised in the context of GEF-financed climate change mitigation projects. As part of the project preparation, an international expert from the Migratory Soaring Birds project visited the Dongola wind farm site and utilised tools from the Migratory Soaring Birds project to help evaluate the potential impact on the site. Some of the outputs are shown below. As part of the current project, the EIA already in place will be updated and improved to bring it in line with international best practice and best guidance. Protocols and tools developed by the project in conjunction with the Dongola wind farm will be made available to all future wind farms, most imminently the Red Sea wind farms.
Outcome 1 Outputs Activities
1. Power 1.1 Wind farm design, installation 1.1.1 Conduct a detailed grid study for Dongola generation and operation of interface wind farm in conjunction with the Ministry of from wind electronics in Dongola wind farm Water Resources & Electricity and the energy was completed such that islanding Engineering, Procurement & Construction (EPC) resources problems are avoided and grid contractor, including a review of increased. stability is ensured. interconnection equipment and interface electronics, and monitoring of the grid. Sudan's large hydro-electricity capacity provides a good opportunity for stabilising the grid with fluctuating renewables.
1.1.2 Review of contract technical specifications, supervision of construction, testing and commissioning of Dongola wind farm.
1.1.3. Training for a) project implementation and project management, and b) operational best practices and monitoring, including such local specific items as grid interaction to maximise the wind energy generated, and
33 PMIS 1028.
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maintaining turbine blade efficiency in a dusty climate which can erode efficiency. Training will include the National Control Centre, responsible for dispatching power plants.
1.2 Completed and approved 1.2.1 Assessment of the potential ecological replication and investment plan for impacts of the development process and post- the construction of additional wind construction assessment of Dongola wind farm farms in the Red Sea region and development of tools, templates and prepared with the objective of protocols for future projects. catalysing new investment: Technical component for the 1.2.2 Development of guidelines for wind farm- Red Sea wind farms to specific EIA considerations (e.g. migrating birds, address interface electronics noise) and other hazards (e.g. civil and military and grid stability, aviation). These will make use of materials from minimisation of the UNDP-implemented, GEF-financed Soaring environmental impacts (e.g. Birds project. soaring birds) and development of a prioritised 1.2.3 Detailed assessment of identified Red Sea list of practicable wind farm and future wind farms sites using the tools, sites. templates and protocols developed. Finance component for the Red Sea wind farms to 1.2.4 Development of the Red Sea wind farm support implementation as tender and investor proposal documents in private-sector IPP projects: conjunction with the Ministry of Water address business planning; Resources & Electricity. banking proposal preparation; negotiation with investors; 1.2.5 Development of a feed-in tariff policy regional development and NAMA for wind power in Sudan, including: bottle-neck issues (e.g. development of a set of guidelines to establish logistical/accessibility national NAMA eligibility and design criteria; constraints); NAMA strengthening HCENR as the national development for the Red Sea coordinating institution and quality assurer for wind farms to catalyse climate NAMAs; establishment of a baseline for finance. calculating emission reductions from grid- connected renewable energy through development of a tool for annually updating the emission factor of the national electricity system; and development and implementation of an MRV framework for the NAMA.
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Figure 14: Integrated Biodiversity Assessment Tool (IBAT) map for Sudan
Figure 15: Soaring bird sensitivity map for Dongola generated as part of the project preparation process
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Outcome 2: Policy and institutional regulatory framework adopted
43. Outcome 2 focuses on mobilising increased wind power investment in Sudan through enabling policy and regulatory frameworks. The outcome strengthens the renewable energy component of Sudan's long-term energy plan, explores the costs and benefits of a range of financial incentives, and integrates policies and codes, in particular, to comply with the East African Power Pool members, which are envisaged to trade power with Sudan through a common grid in the future.34
44. To help encourage private investments in wind energy, the activities of this outcome are structured around creating a coherent system of policies and standardised tools to streamline the investment process. These include an analysis of the cost-effectiveness of various financial policy instruments (portfolio standards, feed-in-tariffs, carbon finance, carbon taxation, removal of fossil fuel subsidies, reforms of existing tariffs, accelerated depreciation of turbines, tax credits, capital subsidies, time-of-use tariffs, etc.) for reducing GHG emissions and increasing the energy independence of Sudan.
45. Based on certain selected cost-effective policies, standardised agreements will be formulated for power purchase, metering and accounting guidelines. These will allow investors to clearly determine prior to their initial steps the format of the agreements they would enter into, therefore considerably reducing initial risk and encouraging private-sector participation. It will also contribute greatly to the transparency of the sector. The goal of these agreements and guidelines is to provide a single standardised Power Purchase Agreement (PPA) template which can streamline the process of contracting with developers.
46. To help achieve maximum cost-effectiveness, activities under this outcome will make use of wind resource, grid accessibility, ecological impact and terrain data to estimate wind energy costs throughout Sudan. These cost estimates, together with information from the Government of Sudan’s development plans and strategies, will help support the process of identifying areas to for wind development, and establishing a feed-in tariff that is sensitive to the variations between locations. Such a spatially-differentiated FiT would be strategically planned to account for variations in the wind resource, grid availability/stability and economic development to achieve the greatest overall developmental impact for Sudan. The tariffs will be periodically revised and updated based on changes in market conditions and on the amount of power that has been installed relative to Sudan’s targets and needs.
47. Outcome 2 also includes the adoption of secondary legislation to promote private-sector investment in wind energy projects, including a Public-Private Partnership Act and an Independent Power Producers Act. This output puts in place general legislation to provide an overall framework for the adoption of renewable energy technologies and their connection to the grid, including a grid code specifying the technical requirements for the interconnection of renewable energy sources; an inter-ministerial National High Committee for Renewable Energy (NHCRE) for providing cross-sectoral perspectives and high-level political support for renewable energy; and a single point of interaction (a so- called “one stop shop”), housed within MWRE, where wind energy developers can access all required information and obtain necessary permits.
34 http://www.eappool.org/about-eapp/eapp-governance.html
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48. A grid code is a central component of allowing power producers to connect to the grid while ensuring that a stable and functional grid is maintained. The grid code specifies the technical aspects of the grid connection to ensure that the power plant can adequately react to fluctuations in the grid and to ensure that the power plant output does not fluctuate in a way that disturbs the grid. A typical grid code specifies parameters such as the voltage-time response required, such that the voltage from the plant ramps up gradually instead of suddenly. Other parameters often specified include frequency fluctuations and requirements that the plant disconnect upon instruction from the grid control centre (dispatch centre). The existence of a grid code standardises these aspects by fixing voltage regulation ranges, response times and other variables. In the presence of a good grid code, taking into account the characteristics of the Sudanese grid, users will be allowed to connect to the grid in a way that maximises their power generation while allowing the grid controller to maintain a well regulated, stable grid. By contrast, without a grid code, the connection of each individual plant becomes a difficult process and maintaining a well regulated grid becomes a matter of ad hoc adaptation. A robust grid code will take advantage of Sudan’s large hydro-power resources to stabilise the overall grid and allow maximum penetration of variable renewable resources.
49. To help support Sudan’s development of wind resources, the project will promote the centralisation of several planning and execution facilities. With respect to Government entities and the political process, an inter-ministerial committee, the National High Committee for Renewable Energy (NHCRE), will be established with a mandate and operational guidelines to strengthen and harmonise renewable energy policies and streamline the decision-making process. The Committee will rely on appropriate support from other stakeholders, providing it with the technical resources to efficiently issue sound judgments that will support and enable the development of renewable energies.
50. From the perspective of investors and project developers, a “one-stop-shop” will be established to consolidate all requirements for permits and permissions within a clear set of documentation that will allow for smooth and transparent interaction with the regulatory process. An office will be established in MWRE to provide a single point of contact for investors with the Government and permitting process. To support this ‘one- stop-shop’, a training programme will be enacted to put in place procedures and support for the staff.
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Outcome 2 Outputs Activities 2. Policy, 2.1 Formulated long-term 2.1.1 Strengthening of the RE component of Institutional, energy policy and regulations for Sudan's Long-Term Energy Plan. and regulatory Sudan, including analysis of the framework cost-effectiveness of financial 2.1.2 Development of a structured analytical adopted. policy instruments (portfolio process – using Systems Dynamic Modelling – standards, feed-in-tariffs, and a stakeholder consultation process to carbon finance, carbon taxation, explore cost-benefit profiles of a range of removal of fossil fuel subsidies, financial policy instruments. reforms of existing tariffs, accelerated depreciation of 2.1.3 Integration of policies and codes, turbines, tax credits, capital maintaining compatibility with East African subsidies, time-of-use tariffs, Power Pool members. etc.) for reducing GHG emissions and increasing the energy independence of Sudan.
2.2.1 Established regulatory framework for 2.2 Developed and endorsed renewable energy purchases, including standardised Power Purchase standardised Power Purchase Agreements. Agreement (PPA) for grid- connected renewable energy 2.2.2 Established guidelines for IPP energy projects. metering and accounting.
2.3.1 Estimation of wind energy production costs in selected regions of Sudan based on 2.3 Established and approved geographical conditions and wind speeds, and dynamic, geographically-zoned grid availability/stability. feed-in tariff for wind energy in Sudan. 2.3.2 Design and establishment of a feed-in tariff mechanism for wind energy IPPs based on geographical zones.
2.4.1 Evaluation and development of legislation and regulations for private-sector grid- 2.4 Adopted and approved connected power generation, including a secondary legislation relevant to Public-Private Partnership Act, an Independent wind energy developed for Power Producer Act and pro-wind energy catalysing private sector revisions to the Investment Act. investment in wind energy projects, including a Public- 2.4.2 Establishment of guidelines for the use of Private Partnership Act and an the FiT, PPP rules and other mechanisms to Independent Power Producers support independent power producers, Act. including an arbitration mechanism for IPPs.
2.4.3 Design of a PPP programme for wind farms with the Government.
2.5.1 Bounds and guidelines established for frequency and voltage stability of the national grid to allow the reliable inter-connection of 2.5 Formulated and adopted grid renewable energy sources of variable nature. code for the interconnection of
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variable renewable energy 2.5.2 Established and approved guidelines for sources. new sub-stations and transmission lines for the interconnection of additional wind farms to the national grid.
2.6.1 Mandate, membership and operational guidelines defined for the Committee.
2.6 Established and operational 2.6.2 Institutional strengthening and inter-ministerial High harmonisation of policy agendas of participant Committee for Renewable institutions for streamlined Committee Energy for providing decision-making. cross-sectoral perspectives and high-level political support for clean energy. 2.7.1 Consolidation of requirements for permits and legislation for wind energy projects in a single location with a single set of documentation explaining the process and 2.7 Established an operational requirements for investors. “one-stop shop” (OSS) for wind energy investors and developers 2.7.2 Interface with required institutions to housed jointly between the provide representation within MWRE capable Investment and Regulatory of providing the OSS service. Departments of the Ministry of Water Resources and Electricity. 2.7.3 Establishing procedures and training personnel to support integration of the permitting process, site-specific surveying, technical assistance for feasibility studies, and ecological and environmental impact assessments to help support the requirements of financiers and donors.
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Outcome 3: The wind technology support and delivery system Strengthened
51. This outcome aims to enhance stakeholders’ technical and planning know-how and technological capacities for wind power initiatives. To achieve this, a wind atlas for the Republic of Sudan will be developed in a GIS system, with additional layers for geology, geomorphology, land ownership and type (e.g. protected areas / forests), settlements and routes of migratory birds. By overlaying geographical data such as wind speeds, elevations, general soil conditions, distance from the grid, cost of land and other variables, it will be possible to produce an atlas of estimated wind energy production costs at locations throughout Sudan. This atlas will be the basis for establishing spatially- differentiated feed-in tariffs and will provide a valuable tool in evaluating areas in which to invest.
52. A training programme will be implemented such that during the phased construction of the Dongola wind farm local experts, technicians and practitioners will be trained to prepare and conduct site study visits during construction, interconnection, operation and maintenance of the pilot wind farms. This will build a cadre of locally-available skilled knowledge that can contribute to the development and operation of wind farms.
53. One of the impediments to the development of wind energy at present is a lack of local knowledge of wind farms and their implementation, making each step in the process more difficult and slower. The phasing of the Dongola wind farm will in essence support a five-year construction programme that will serve as an extended five-year training site for local personnel. Although the phasing delays somewhat the onset of wind capacity on the grid, it provides a much greater opportunity for learning, training, development of guidelines and immediate implementation of lessons-learned.
54. To further spread local capability for wind technology, renewable energy-related curricula for national universities and the National Energy Research Centre (NERC) will be supported. This activity will help create a generation of young graduates who have a strong theoretical background in wind technology and experience with local conditions.
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Outcome 3 Outputs Activities 3. Strengthed 3.1 Developed and approved wind 3.1.1 Compilation and reconciliation of the wind atlas for Sudan in a GIS system, existing wind data and establishment of wind technology with additional layers for geology, measurement masts where needed. support and geomorphology, land ownership delivery system. and type (e.g. protected areas / 3.1.2 Compilation of sources of data for forests), settlements and routes of geology, geomorphology, land ownership, migratory birds. settlements, electric grid connections, bird migration, cultural heritage, etc.
3.1.3 Integration of wind and other datasets, including the wind cost estimates developed under 2.3.1, into a GIS system capable of Web-based (off-site) interrogation and analysis.
3.1.4 Development of a national map to highlight priority areas for wind development.
3.2 Local experts, technicians and 3.2.1 Establishment of a structured training practitioners capacitated to programme for national experts, technicians, prepare and conduct site study academics and students throughout the visits during construction, construction of the Dongola wind farm to interconnection, operation and help build capacity and establish strong maintenance of the initial wind linkages with educational and vocational farm. courses.
3.2.2 Establishment of an ongoing O&M training centre at the Dongola wind farm.
3.3 Approved RE-related curricula 3.3.1 Development of training, of specialised universities and the demonstration and study materials for National Energy Research Centre participating universities and NERC; (NERC). development or adoption of technical standards.
3.3.2 Establishing collaboration with established RE-related curricula and activities at international universities and institutions.
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Outcome 4: Adaptive learning and replication plan supported
55. To help enable conditions for leveraging significant additional investment and knowledge nationally and regionally, this outcome will provide documented lessons-learned, experiences and best practices related to the development of the Dongola wind farm. It will also arrange regional workshops for transferring knowledge and capacity to Sudan from relevant regional countries with established wind energy sectors (e.g. Egypt, Morocco, and Kenya).
56. The outcome will help ensure the continued successful operation of the Dongola wind farm by putting in place a quality assurance process, for example ISO 9001.The documentation of such a process will help codify the operational practices used and serve as a basis for dissemination of lessons-learned and practices from Dongola.
57. To take advantage of regional experience in wind energy, the project will establish study tours to support the networking of Sudanese wind professionals with counterparts in the region. Such tours will form a basis for cooperation with the East African Power Pool, of which Sudan is already a part, to strengthen regional ties and further the exchange of renewable power across the East African grid.
Outcome 4 Outputs Activities 4. Adaptive learning 4.1 Documented 4.1.1 Development of a set of documents, lessons- and replication plan lessons-learned, learned and practices as a case study of the supported. experiences and best implementation of Dongola wind farm. practices related to the development of the 4.1.2 Establishment of a quality management Dongola wind farm certification process (e.g. ISO 9001) at Dongola wind compiled and farm to serve as an example to other wind farms in disseminated for other Sudan. wind farm projects in 4.1.3 Establishment of methods for ongoing Sudan. dissemination of lessons-learned and best-practices
through online media and other means, such as training
sessions, universities, etc.
4.1.4. Specialised local engineering universities, research institutions, professional syndicates, NGOs and consulting companies with enhanced technical capacity to site, design, install, operate and maintain wind turbines at selected project sites.
4.2 Completed regional 4.2.1 Establishment of study tours, networking workshops for connections and assuring interaction at regional transferring knowledge forums on a regular basis. and capacity to Sudan 4.2.2 Establishment of regional cooperation among from relevant regional East African Power Pool countries on the development countries (e.g. Egypt, and integration of renewable energy into the East Morocco, Kenya). African grid.
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2.2. Key indicators, risks and assumptions
58. In accordance with the GEF-5 Climate Change Focal Area Objective #3, to “Promote Investment in Renewable Energy Technologies”, the key success indicators of the project are:
The extent to which policies and regulations for RE are adopted and enforced; The volume of investment mobilised; and The number of tonnes of CO2-equivalent avoided.
59. The project specifically aims to achieve the following:
Installation of the 100 MW Dongola wind farm, while ensuring a stable grid connection. Replication of lessons from Dongola for the Nyala, Khartoum and Red Sea wind farms. Development of a comprehensive set of policies and regulations to encourage investment in wind power in Sudan. Completion of technical and regulatory standards needed for connection of private-sector power generators to the grid. Development of a wind resource map for Sudan, coupled with other geographical information, such as bird flights, to determine optimal areas for development. Development of a NAMA around a spatially-differentiated feed-in tariff. Development of a “one stop shop” within the Government to streamline the project development process. Development of human capacity, through training, workshops and advanced study curricula, to support wind farm projects.
60. For further details about the related targets, see the project’s results framework in Section 3.
61. The main identified risks to the successful implementation of the project include:
Finance – Obtaining finance for the wind farms continues to be a challenging. The Government has committed to developing the Dongola wind farm in phases to overcome this obstacle. The private-sector financial system is not currently well equipped to make major investments in wind energy, largely because domestic financiers lack examples of functioning wind farms against which to appraise new project proposals. Successful implementation of Dongola wind farm will provide just such an example. Political – The Government may fail to marshal the necessary resources or coordination amongst its entities to bring about the desired legislative and regulatory reform. MWRE already faces a significant burden in meeting rising demand for electricity. Implementation of policy reforms requires the involvement of MWRE, MoP, the Cabinet of Ministers and other Government bodies. The necessity to coordinate between these entities represents one of the risks to successful implementation of the project. Novelty and adoption risk – Private-sector entities in Sudan are slow to adopt new technology and take up unfamiliar businesses in part because the overall system does not encourage such behaviour. To date, there has not been any private-sector investment in utility-scale power generation. The capital
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investment required is large and may not be easily raised locally while foreign investors are wary of perceived investment risks in Sudan. Technology – Technical risk is minimal, especially as wind turbines have been installed in conditions similar to those in Sudan for many years. Early installations in neighbouring Egypt had failures due to the heat and dust. Manufacturers currently offer turbine packages for high-temperature and high-dust locations to allow turbines to function in these environments. Performance risk – The operation of wind farms in Sudan's climate is different from operation in European climates. Performance is sometimes degraded, because of heat, because of maintenance downtime, or because of the accumulation of dust on the turbine blades. These issues can be mitigated with appropriate operations and maintenance, but must be well planned for. Implementation capacity – Inadequate and/or non-capacitated human resources to successfully implement the project and support the mainstreaming of its results. The current capacity to implement and operate wind farms in Sudan is almost non-existent. The proposed project includes elements to develop human capacity. Should these not succeed, they represent a risk to the sustainable development and operation of wind farms in Sudan. Climate change – The climate risk faced by the project is minimal. The greatest climate change risk would be a shift in wind patterns but a shift large enough to have material impact on the baseline wind farms is not expected within their 20 year lifetimes and even thereafter. The National Adaptation Programme of Action (NAPA, 2007) observes that the occurrence of extreme weather events in the form of wind storms is rare. The impact of higher air temperature on changes in air density (leading to power loss) is insignificant. However, climate change will adversely affect hydro-power because of reduced rainfall. Hydro-power is Sudan's main power source. A change in river flows would cause Government and private sector attention to be drawn away from hydro-power and to the potential of other sources, such as wind power. Ecological risks – As part of the project preparation, the Dongola wind farm site was visited by an international ornithologist and ecology expert, who determined that the site posed minimal risks to wildlife and birds. As part of the UNDP- implemented, GEF-financed project, a more detailed site survey will be undertaken to assess bird risks and impacts, and the means of mitigating them, including options such as avian deflectors for transmission lines (see Figure 16 below). Migratory bird routes are likely to be a more significant issue for the Red Sea wind farm; the project will ensure that the appropriate protocols and systems are in place to minimise avian impacts.
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Figure 16 Example of a bird risk mitigation measure - avian deflectors for power lines.
62. Further details on these risks, with their probability and impact analysis and related mitigation measures, are presented in the “Offline Risk Log” in Annex 7-1.
63. For addressing the project management risks, a committed, full-time project manager with adequate outreach and networking skills is absolutely essential for the success of the activities. The project manager should have an ability: i) to engage the key stakeholders in constructive discussion about future renewable energy development needs; ii) to guide and supervise the studies undertaken and effectively co-operate with the international experts who are engaged to support this work; iii) to present their findings and recommendations in a convincing manner to key policy-makers and opinion leaders by taking into account the main macroeconomic and policy drivers for domestic energy sector development; and iv) to identify areas of future work. During project implementation, the project manager also needs to be supported by qualified technical and legal experts.
64. A typical risk for the training and capacity building activities is that, after the completion of training, there will be no real demand for the services of the trained experts. The integrated approach adopted by the project is expected to mitigate this risk by providing opportunities for those trained on the Dongola wind farm to participate in the Nyala, Khartoum and Red Sea wind farms, therefore considerably increasing the local human contribution to these wind farms and encouraging further replication.
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2.3. Expected benefits, design principles and strategic considerations
65. The calculated global GHGs reduction benefits of the project will consist of a combination of: Direct GHG emission reduction benefits from the Dongola wind farm. Indirect GHG reduction benefits resulting from broader market transformation arising from project activities.
66. No post-project GHG emission reduction benefits arising from ongoing operation of financing mechanisms established or supported by the project have been accounted for in this project, as the GEF cash contribution to capital investments represents a one-time capital grant without expected pay-back.
67. Over the lifetime of the UNDP-implemented, GEF-financed project, the direct CO2 emission reductions attributed to the Dongola wind farm are calculated to be 91,780 35 tCO2/year, or 1,835,600 tCO2 over the 20 year life of the wind farm. With a GEF financial contribution of $3,536,634, this translates as a cost of $GEF 1.93/tCO2 abated directly. This does not include any wind farms installed as an indirect result of the project – through the project’s market-opening, awareness-raising and supply chain assistance activities, for example. For further details about the assumptions and results of the project’s GHG reduction analysis, see Annex 8-4.
68. The associated national and local benefits include reduced local pollution from the burning of fossil fuels and strengthened national energy security through reduced dependency on imported fuels.
69. These developments will catalyse the adoption of wind technology and provide a foundation that allows the widespread use of wind energy either in response to regulatory stimulus or simply to help realise systems where wind energy may already be advantageous but is not utilised due to a lack of capacity or awareness.
2.4. Project rationale and policy conformity
70. The project contributes to GEF Climate Change Focal Area Objective #3, to “Promote Investment in Renewable Energy Technologies”, recognising that renewable energy plays an indispensable role not only in combating global climate change but also in addressing energy access, energy security, environmental pollution and sustainable development. In accordance with the adopted strategy, the GEF support under expands beyond the creation of an enabling policy and regulatory environment and also encompasses wind energy investment projects that will lead to a step-change in the deployment of wind energy.
71. The specific outcomes of the GEF-5 climate change strategy that the project will address are the following: Favourable policy and regulatory environment created for renewable energy investments. Investment in renewable energy technologies increased. GHG emissions avoided.
35 Lahmeyer International (2013), 100 MW Wind Power Project in Dongola.
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72. The project is consistent with Sudan's national strategies, as evidenced by the already- existing incentives for renewable power in Sudan's Investment Act. The project will help further the goals Sudan's national strategies by putting in place the overall framework that will make them effective. The Technology Needs Assessment (TNA) carried out by HCENR with GEF support points to renewable energy as one of Sudan's key priorities in climate change mitigation. Similarly, Sudan's Second National Communication to the UNFCCC includes renewable energy as “a key potential mitigation option”. The objective of the project is also consistent with the views and objectives espoused by several stakeholders, especially from MWRE, during the extensive consultation process carried out as part of the project preparation.
73. The project aims to develop and accelerate the adoption of grid-integrated wind power generation by providing a structure around the Dongola wind farm to translate the experience from that project onto a national basis to be replicated by other wind farms, most notably the planned Red Sea wind farms at Toker, Port Sudan, Nyala and Khartoum. Sudan’s development depends critically on the availability of reliable electric power and independence from fossil fuels as Sudan is currently a fossil fuel-poor nation. The present lack of availability of options, the lack of a framework to allow the sale of power to the grid, the lack of technical know-how in the market, the lack of user experience with the technology, and the lack of hands-on experience amongst Government officials means that adoption of fossil fuel alternatives is slow and limited.
74. The UNDP-implemented, GEF-financed project will achieve its objective by addressing impediments to the development of private-sector wind power projects. Specifically, the project intends to achieve the project objective through the following:
Supporting the establishment of a regulatory framework; Creating financial incentives – in the form a feed-in tariff to complement already- existing incentives under the Investment Act. The project will analyse existing and possible incentives and propose to the Government appropriate incentives for implementation; Establishing a technical knowledge base and cadre of experienced professionals to support the development of wind power projects.
75. The project will play a critical role in creating a market that does not presently exist and supporting it through a nascent stage to the point where it is self-sustaining and able to respond to the needs of the Government, financiers and IPPs.
2.5. Country ownership: country eligibility and country drivenness
76. According to the Instrument for the Establishment of the Restructured Global Environment Facility, Sudan qualifies for GEF financing on the following grounds: It has ratified the UN Framework Convention on Climate Change; and It receives development assistance from UNDP’s core resources.
77. The objective of the project is consistent with the strategies of the Sudanese Government, particularly as outlined in the Renewable Energy Master Plan (2005). The project will provide the basis for Sudan to initiate the development of a NAMA to support renewable energy. It will thus provide Sudan with the opportunity to reinforce its
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engagement with the international climate change architecture and demonstrate its commitment to international efforts to reduce GHG emissions.
78. UNDP has considerable experience in deploying policy instruments to de-risk renewable energy investments in developing countries.36 The project will be a direct application of UNDP’s work in this area.
79. Sudan has already demonstrated strong country drivenness in implementation of its power projects as recognition of the critical role they play in the development of the country. This has been true in particular of its hydro-power projects. The same can be expected for wind power projects as today they represent not only a renewable source of power but also a source of national security by diversifying energy supply and reducing the reliance on fossil fuels.
80. The GEF Operational Focal Point for Sudan endorsed the project with a letter signed on February 14, 2011.
2.6. Cost-effectiveness
81. The GEF financing for Outcome 1 (US$2,391,864), represents the bulk of the GEF financing for the project and has been allocated to support the development of the Dongola wind farm as Sudan’s first wind project. The development of Dongola is seen as the most critical step in launching wind energy in Sudan. Success at Dongola will translate to future projects, while a failure at Dongola will setback wind power in Sudan by several years. The current lack of experience and resulting shortcomings in some of the preparatory studies for Dongola indicate that UNDP-GEF support will be critical in bringing the implementation of Dongola up to international best practice.
82. The GEF financing for Outcome 2 (US$377,410), will consist of grants for technical assistance, which will support the further development of regulations, technical requirements for grid connection, a feed-in tariff, and a centralised “one-stop-shop” to support the development of wind energy in Sudan. Together, these initiatives are expected to foster a regulatory environment for attracting investments for privately- owned, grid-connected renewable energy power generation and for facilitating effective monitoring, quality control and dissemination of the results of the investments made.
83. The GEF financing for Outcome 3 (US$420,000), consists of technical assistance to strengthen the support for wind technology and the delivery of such support. This includes the creation of a wind atlas, overlaid with other geographical information, as well as the development of a well-trained cadre of competent wind professionals in Sudan who are expected to serve as the core of future wind projects.
84. The GEF financing for Outcome 4 (US$180,000), consists of technical assistance to ensure the documentation and dissemination of experience from Dongola, as well as the interaction of professionals from Sudan with others in the region, to further the experience gained and support the integration of wind power in the East African Power Pool, of which Sudan is a member.
36 UNDP (2013), Derisking Renewable Energy Investment.
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85. The proposed project is extremely cost-effective as it will utilise relatively limited GEF funds to leverage almost $214 million of co-financing (a co-financing ratio of over 60). In the absence of the UNDP-implemented, GEF-financed project, the wind farm would be built but not according to best practices and with greatly reduced potential for replicability and efficient performance. If the project were to focus solely on policy issues it would risk being irrelevant without a concrete demonstration and opportunity to use this demonstration as a learning vehicle for future projects. The cost-effectiveness of the project is reflected in its very low GHG abatement cost - less than $2/tCO2.
2.7. Sustainability
86. The savings in fuel from grid-connected thermal electricity plants are comparable to the levelised cost of generation from wind power. Wind power is therefore competitive with Sudan’s current marginal cost of thermal generation and can be expected to relieve some of the need for fossil fuels. Sudan can, therefore, realise a cost saving by operating a wind power plant in place of a current, average, grid-connected fossil fuel plant.
87. Once the implementation of the initial phases of the Dongola wind farm has been successfully completed and demonstrates outputs as anticipated, it can expected that other planned wind projects (e.g. the Red Sea sites, Khartoum and Nyala) as well as more long-term projects will be mobilised.
88. Although wind energy may be competitive with fossil fuel generation on the basis of levelised cost, it remains capital-intensive. MWRE has experience with such high-CAPEX projects, having implemented a number of hydro-power projects to date. Unlike hydro- power projects, which tend to be very large in scale, wind power can scale from a few megawatts to hundreds of megawatts depending on the available land and the wind resource. With appropriate policies and a regulatory framework in place, the wind initiative can be expected to be self-sustaining while making a significant contribution to the overall sustainable development of Sudan. When Sudan is buying fuel on in the international market, each megawatt-hour of electricity produced from renewables has the potential to save some $100-$130 in fuel costs. A farm such as Dongola will save the Government some $35 million/year in avoided fuel costs.
2.8. Replicability
89. The project has strong potential for replicability as the Government of Sudan already has intentions to build 220 MW of wind farms after the initial 100 MW installed with the assistance of the UNDP-implemented, GEF-financed project. As a result, the project has immediate replicability of an additional 220 MW. Sudan’s long-term plans call for the construction of 600 MW of wind power, providing further opportunity for replicability.
90. The proposed phasing approach to be used at Dongola provides excellent opportunities for the lessons-learned from initial phases to be tested and codified in later phases, producing by the end of a project a comprehensive and tested field guide for wind farm implementation. This guide will be the reference used in subsequent replicated wind farms.
91. Whereas the Dongola wind farm will be owned by MWRE, the direction taken by MWRE, and supported by the UNDP-implemented, GEF-financed project, is to establish the
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framework that will allow the private sector to replicate the wind farm built in Dongola. The feed-in tariff and its associated NAMA that will be developed by the project will apply to all future wind farm projects, thereby promoting replication.
92. A number of countries in the region are at various stages of developing renewable energy capacity. Given the interest of several GEF programme countries in developing and implementing similar projects, the materials developed and the results and lessons- learned from this project are expected to be of direct interest to other countries. An activity of Outcome 4 is specifically dedicated to condensing the lessons-learned in other countries in the region to help Sudan, and similarly to document the lessons from the UNDP-implemented, GEF-financed project to help wind energy development throughout Sudan and in other countries.
93. The project includes funds for the general sharing of knowledge, including study-tours to various locations in the region that will help spread experiences and develop a network for cooperation between the various stakeholder groups at the national and international levels.
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3. Project Results Framework
Project Outputs and Related Target(s)/Sub-target(s), as applicable This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: The Government of Sudan has the institutional framework to develop and implement MDG-based, pro-poor, equitable and inclusive socio-economic and environmental policies and strategies. Country Programme Outcome Indicators: Capacities of national and sub-national authorities and communities for effective environmental governance, natural and renewable resources management and climate change strengthened. Primary applicable Key Environment and Sustainable Development Key Result Area: 1. Mainstreaming environment and energy OR 2. Catalysing environmental finance OR 3. Promote climate change adaptation OR 4. Expanding access to environmental and energy services for the poor. Applicable GEF Focal Area Objective: GEF-5 FA Objective # 3 (CCM-3): “Promote Investment in Renewable Energy Technologies”.
Project Outputs and Related Target(s)/Sub-target(s), as applicable Indicator Baseline Targets Source of Risks and End of Project verification Assumptions Project Introduction of Current put in place Sudan Project Delay in the Objective37 renewable Renewable renewable energy monitoring approval and energy policies energy policy, law and reports and ratification of the To overcome and regulations. master plan regulation final renewable energy barriers to the evaluation. laws and market regulations development of Capacity of 0 MW Installing 100 MW Electrical The volatile utility-scale wind power capacity in Dongla power economic wind farms in installed sector situation in Sudan Sudan. reports may delay implementation. MWh of power 0 MWH Generating of Electricity Shortages of generated by 300,917 MWh/year generation funds, labour and grid-connected from wind energy. reports skills which strain wind energy. its human and material resources. Outcome 138 1.1 Megawatts 1.1 - No MW 1.1 - 100 MW of grid- 1.1 - Project 1.1 - As above. of installed produced connected wind monitoring Grid-connected grid-connected from WP. power installed at reports and power wind power. Dongola wind farm. final generation evaluation. from wind farm 1.2 - Number of 1.2 – 0 wind 1.2 – Installing 4 1.2 - 1.2 - Lack of introduced. wind farms farms wind farms (The Progress finance. operating in Ministry of Water reports on Sudan. Resources and power
37Objective (Atlas output) monitored quarterly ERBM and annually in APR/PIR 38All outcomes monitored annually in the APR/PIR. It is highly recommended not to have more than 4 outcomes.
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Indicator Baseline Targets Source of Risks and End of Project verification Assumptions Electricity (MWRE) plants has a plan to build installation four wind farms).
Outcome 2 2.1 - Number of 2.1 - No, 2.1 – Two guidelines 2.1 - EIA 2.1 - The environmental guideline for wind farm- studies and assumption that Policy, and social existed specific EIA reports the project will institutional guidelines considerations (e.g. support and regulatory developed for migrating birds, conducting framework implementing noise) and other environmental adopted. wind farms. hazards (e.g. civil and studies including military aviation) soaring bird’s developed. risks and mitigation measures. 2.2 - 2.2 - No SOPs 2.2 – SOPs for wind 2.2 - 2.2 - Since the Development of power plant is Documents Dongla wind Standards developed of SOPs and farms contract Operating specification was already Procedures s agreed upon, the (SOPs) and developed SOPs technical and specifications specifications can only be for applied for the establishment other 3 wind of wind farms. farms 2.3 - 2.3 No feed- 2.3 - feed-in tariff 2.3 - FiT 2.3 - The FiT Development of in tariff policy policy NAMA for policy NAMA project a feed-in tariff existed wind power in Sudan document was developed (FiT) policy developed and NAMA and registered for NAMA for wind project support with power in Sudan document NAMA domain. and reports. 2.4 - Extent to 2.4 - A bill has 2.4 - policies and 2.4 - Project 2.4 - Assuming which RE been drafted legislation for monitoring that the proposed policies and for RE renewable energy reports and legal and regulations are policies. are effectively final regulatory adopted and adopted and evaluation. improvements enforced. enforced pass swiftly through the Government and Parliamentary approval process. Outcome 3 3.1 - Number of 3.1 - 3.1.A - 100 3.1 - Project 3.1 - Lack of individuals and Preliminary engineers trained in reports. interest while the The wind organisations wind wind technology (50 market technology trained and measurement males & 50 females). opportunity is not support and capable of s have been 3.1.B - 5 institutions yet clear to delivery system supporting carried out as supported in wind participants (this Strengthened. activity in the well as some technology. risk is minimal). Sudanese wind feasibility market. assessments based on those
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Indicator Baseline Targets Source of Risks and End of Project verification Assumptions measurement s. 3.2 – 3.2 - MWRE 3.2 – Wind atlas 3.2 - Wind 3.2 - Lack of Development of has developed maps and reporting by a reliable developed a atlas market national wind wind atlas participants, atlas. based on making collection extrapolation of data difficult. of world data with high probability of inaccuracy. Outcome 4 4.1 - Quality 4.1 - There is 4.1 - Establishment 4.1 - Project 4.1 - The major Management currently no of a quality reports. risk is garnering Adaptive System for plan for management Obtaining interest by learning Dongola wind compiling certification process the quality convincing and replication farm is and (e.g. ISO 9001) for managemen individuals that plan supported. established. disseminating Dongola wind farm. t certificate. there is a future lessons- for wind power in learned in Sudan. wind power. 4.2 - Number of 4.2 - Limited 4.2 – Ten Study tours 4.2 - Project 4.2 - Lack of fund educational exchange of undertaken to wind reports and tours experiences plants in the annual work conducted to with neighboring plans. wind farms in neighbouring countries (including neighbouring countries 50% female and 50% countries with male). established wind farm like Egypt and Ethiopia.
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4. Total budget and work plan
Project Award ID: 00080570 ID(s): 00090222 Award Title: Promoting utility scale power generation from wind energy Business Unit: SDN10 Project Title: Promoting Utility-Scale Power Generation from Wind Energy PIMS no. 4726 Implementing Partner (Executing Agency) Ministry of Water Resources and Electricity
Responsib Atlas GEF le Party/ Amount Amount Amount Amount Amount See Donor Budgetary Outcome/Atlas Implemen Fund ID ATLAS Budget Description Year 1 Year 2 Year 3 Year 4 Year 5 Total (USD) Budget Name Account Activity ting (USD) (USD) (USD) (USD) (USD) Note: Code Agent OUTCOME 1: MWRE 62000 GEF Initial wind farm 71200 International Consultants 250,000 200,000 200,000 191,864 150,000 991,864 a implementation 71300 Local Consultants 60,000 70,000 75,000 75,000 60,000 340,000 b 71400 Contr. services – indiv. 35,000 35,000 35,000 35,000 35,000 175,000 c 71600 Travel 20,000 20,000 15,000 15,000 15,000 85,000 d 72200 Equipment 400,000 400,000 0 0 0 800,000 e Sub-total GEF 765,000 725,000 325,000 316,864 260,000 2,391,864 Total Outcome 1 765,000 725,000 325,000 316,864 260,000 2,391,864 OUTCOME 2: MWRE 62000 GEF Policy, 71200 International Consultants 65,000 65,000 50,000 20,000 15,000 215,000 f institutional and regulatory 71300 Local Consultants 20,000 20,000 20,000 10,000 10,000 80,000 g framework 71400 Contr. services – indiv. 8,000 8,000 8,000 8,000 8,000 40,000 h 71600 Travel 6,000 6,000 4,000 4,000 2,410 22,410 i 75700 Workshops and meetings 6,000 6,000 4,000 2,000 2,000 20,000 j Sub-total GEF 105,000 105,000 86,000 44,000 37,410 377,410
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Responsib Atlas GEF le Party/ Amount Amount Amount Amount Amount See Donor Budgetary Outcome/Atlas Implemen Fund ID ATLAS Budget Description Year 1 Year 2 Year 3 Year 4 Year 5 Total (USD) Budget Name Account Activity ting (USD) (USD) (USD) (USD) (USD) Note: Code Agent UNDP 75700 Workshops and meetings 2,000 2,000 2,000 1,800 2,000 9,800 k
71200 International Consultants 12,000 12,000 10,000 4,000 4,000 42,000 l 71300 Local Consultants 2,600 2,600 2,600 2,575 2,575 12,950 m 71400 Contr. services – indiv. 12,000 12,000 12,000 11,750 11,750 59,500 n Sub-total UNDP 28,600 28,600 26,600 20,125 20,325 124,250 Total Outcome 2 133,600 133,600 112,600 64,125 57,735 501,660 OUTCOME 3: MWRE 62000 GEF 71200 International Consultants 30,000 40,000 40,000 30,000 20,000 160,000 o Strengthening the wind 71300 Local Consultants 15,000 30,000 25,000 20,000 20,000 110,000 p technology 71400 Contr. services – indiv. 20,000 20,000 20,000 20,000 20,000 100,000 q support and 75700 Workshops and meetings 5,000 5,000 5,000 5,000 5,000 25,000 r delivery system 71600 Travel 5,000 5,000 5,000 5,000 5,000 25,000 s Sub-total GEF 75,000 100,000 95,000 80,000 70,000 420,000 MWRE 4000 UNDP 71200 International Consultants 4,000 7,000 5,000 5,000 5,000 26,000 t 71300 Local Consultants 6,000 6,000 3,000 3,000 3,000 21,000 u 71600 Travel 8,000 8,000 5,000 1,000 1,000 23,000 v 74100 Professional services 2,000 2,000 2,000 2,000 2,000 10,000 w Sub-total UNDP 20,000 23,000 15,000 11,000 11,000 80,000 Total Outcome 3 95,000 123,000 110,000 91,000 81,000 500,000 MWRE 62000 GEF 71200 International Consultants 10,000 10,000 5,000 5,000 5,000 35,000 x 71300 Local Consultants 8,000 8,000 8,000 8,000 8,000 40,000 y 71400 Contr. services – indiv. 12,000 12,000 12,000 12,000 12,000 60,000 z 75700 Workshops and meetings 5,000 5,000 5,000 5,000 5,000 25,000 aa OUTCOME 4: 71600 Travel 2,500 2,500 5,000 5,000 5,000 20,000 ab Adaptive Sub-total GEF 37,500 37,500 35,000 35,000 35,000 180,000 learning MWRE 4000 UNDP and replication 71200 International Consultants 1,000 1,000 1,000 1,000 2,000 6,000 ac plan 71300 Local Consultants 2,000 2,000 2,000 2,000 2,000 10,000 ad
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Responsib Atlas GEF le Party/ Amount Amount Amount Amount Amount See Donor Budgetary Outcome/Atlas Implemen Fund ID ATLAS Budget Description Year 1 Year 2 Year 3 Year 4 Year 5 Total (USD) Budget Name Account Activity ting (USD) (USD) (USD) (USD) (USD) Note: Code Agent 71600 Travel 2,000 2,000 2,000 2,000 2,000 10,000 ae 75700 Workshops and meetings 0 1,000 1,000 1,000 1,000 4,000 af Sub-total UNDP 5,000 6,000 6,000 6,000 7,000 30,000 Total Outcome 4 42,500 43,500 41,000 41,000 42,000 210,000 Project MWRE 62000 GEF management 71400 Contr. services – indiv. 24,090 20,000 20,000 20,000 20,000 104,090 ag 71600 Travel 10,000 10,000 10,000 10,000 10,000 50,000 ah
72800 IT Equipment 7,000 3,000 1,000 1,000 1,000 13,000 ai (This is not to Sub-total GEF 41,090 33,000 31,000 31,000 31,000 167,090 appear as an 4000 UNDP 72800 IT Equipment 2,000 2,000 2,000 500 500 7,000 ai Outcome in the Results 72400 Communication 750 750 750 750 750 3,750 Framework and 72500 Office supplies 500 500 500 500 500 2,500 should not exceed 10% of 74500 Miscellaneous 500 500 500 500 500 2,500 project budget) Sub-total UNDP 3,750 3,750 3,750 2,250 2,250 15,750 Total Management 44,840 36,750 34,750 33,250 33,250 182,840
TOTAL GEF 1,023,590 1,000,500 572,000 506,864 433,410 3,536,364
TOTAL UNDP 57,350 61,350 51,350 39,375 40,575 250,000
GRAND TOTAL 1,080,940 1,061,850 623,350 546,239 473,985 3,786,364
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Summary of Funds 39
Amount Amount Amount Amount Amount Total Year 1 Year 2 Year 3 Year 4 Year 5
GEF 1,023,590 1,000,500 572,000 506,864 433,410 3,536,364
UNDP 57,350 61,350 51,350 39,375 40,575 250,000
Ministry of Water Resources and Electricity 25,000,000 47,000,000 47,000,000 47,000,000 47,000,000 213,000,000
Ministry of Petroleum 50,000 50,000 50,000 50,000 50,000 250,000
Higher Council for Environmental and 40,000 40,000 40,000 40,000 40,000 200,000 National Resources
National Energy Research Centre 50,000 50,000 50,000 50,000 50,000 250,000
TOTAL 26,220,940 48,201,850 47,763,350 47,686,239 47,613,985 217,486,364
39 Summary table should include all financing of all kinds: GEF financing, cofinancing, cash, in-kind, etc...
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Budget Description of cost item Note a. International technical consultants to support grid integration, wind farm implementation, NAMA finance, and knowledge transfer b. Local consultants to support the international consultants on grid integration, wind farm implementation, NAMA finance and to begin building local capacity in these areas c. Long-term consultants and project staff d. Land travel to the Dongola project site, accommodation at the project site, international travel to and from Khartoum and accommodation in Khartoum for international consultants. e. Equipment to support monitoring and integration of the wind farm into the Sudan power grid f. Institutional and policy experts with experience in renewable energy frameworks – specifically, feed-in tariffs and regulations, technical experts with experience in wind energy yield forecasting and development of grid codes for wind g. Local consultants to support the international consultants on feed-in tariffs and regulations, wind energy yield forecasting and development of grid codes for wind h. Long-term consultants and project staff i. International travel for consultants to and from Khartoum, accommodation in Khartoum, minimal travel within Sudan. j. Workshops and meetings, mainly with Government officials around the formulation of policies and creation of a “one-stop-shop” for wind investors k. Workshops and meetings, mainly with Government officials around the formulation of policies and creation of a “one-stop-shop” for wind investors l. Institutional and policy experts with experience in renewable energy frameworks – specifically, feed-in tariffs and regulations, technical experts with experience in wind energy yield forecasting and development of grid codes for wind m. Local consultants to support the international consultants on feed-in tariffs and regulations, wind energy yield forecasting and development of grid codes for wind n. Long-term consultants and project staff o. International experts in wind mapping, wind site surveying and GIS systems to develop wind atlas for Sudan; international experts to support curricula development p. Local consultants to support wind mapping, wind site surveying, bird migration and GIS systems to develop wind atlas for Sudan; local academics to participate in curricula development q. Long-term consultants and project staff r. Workshops and meetings in Khartoum and at other Sudanese universities to support curricula development; workshops to consult on geomorphology, geology and land ownership s. International travel to and from Khartoum, travel within Sudan to site locations and workshops t. International experts in wind mapping, wind site surveying and GIS systems to develop wind atlas for Sudan; international experts to support curricula development u. Local consultants to support wind mapping, wind site surveying, bird migration and GIS systems to develop wind atlas for Sudan; local academics to participate in curricula development
UNDP Environnemental Finance Services Page 49 v. International travel to and from Khartoum, travel within Sudan to site locations and workshops w. Audit costs x. International and regional experts to support documentation of lessons-learned from Dongola wind farm and regional workshops y. Local consultants to support documentation of lessons-learned from Dongola wind farm and regional workshops z. Long-term consultants and project staff aa. Regional workshops for transferring knowledge and capacity to Sudan from relevant regional countries (e.g. Egypt, Morocco, Kenya); and to share and disseminate lessons-learned from Dongola ab. Travel for international consultants to and from Khartoum; travel for workshops and regional interaction ac. International and regional experts to support documentation of lessons-learned from Dongola wind farm and regional workshops ad. Local consultants to support documentation of lessons-learned from Dongola wind farm and regional workshops ae. Travel for international consultants to and from Khartoum; travel for workshops and regional interaction af. Regional workshops for transferring knowledge and capacity to Sudan from relevant regional countries (e.g. Egypt, Morocco, Kenya); and to share and disseminate lessons-learned from Dongola ag. Long-term consultants and project staff ah. Travel for project management staff Ai. Computers, software, IT services and web hosting
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5. Management Arrangements
Project Organisation Structure
Project Board: Senior supplier: Executive: Senior Beneficiaries*: UNDP, MFNE MWRE MWRE, NERC, MoP, ERA, MEFPD, SSMO, SBEF, HCENR
Quality Assurance: UNDP Programme Analyst
Project Management Unit Project Technical Committee: - Project Manager Specialist from: Government Project - Project Administrative Associates - Sudan Universities Coordinator - Project Engineers: - Sudan Private sector o IT Wind data analyst - International consultant
o Mechanical Engineer - National consultant o Electrical Engineer
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94. The project will be nationally executed by the Ministry of Water Resources and Electricity, under the National Implementation Modality (NIM). UNDP will be accountable for the disbursement of funds and the achievement of the project goals, according to the approved work plan. The executing agency will assign a senior officer as a Government Project Coordinator to: (i) coordinate the project activities with activities of other Government entities; and (ii) certify the expenditures are in line with approved budgets and work-plans.
95. A Project Board (PB) will be established at the inception of the project to monitor project progress, to guide project implementation and to support the project in achieving its listed outputs and outcomes. It will be chaired by a MWRE representative and will include representatives from UNDP, NERC, ERA, MEFPD, SSMO, SBEF, HCENR MFNE, and a Project Assurance Officer from UNDP. Other members can be invited at the decision of the PB on an as-needed basis, but taking due regard that the PB remains sufficiently lean to be operationally effective. The final list of the PB members will be completed at the outset of project operations and presented in the Inception Report by taking into account the envisaged role of different parties in the PB. The project manager will participate as a non- voting member in the PB meetings and will also be responsible for compiling a summary report of the discussions and conclusions of each meeting.
96. The coordination of the above stakeholders will be carried out by MWRE with the support of UNDP. The coordination will begin with the establishment of a Local Project Appraisal Committee (LPAC) and the invitation of stakeholders to an inception meeting. The PB will identify and put in place steps for initial activities to support, for example, the technical capacity building in the period when the regulatory and financial structures are being developed. One goal of project coordination will be to ensure that the various components of the project are in place when they are needed: e.g. financial instruments are ready when regulations come into place; technical capacity and equipment supply are available at the appropriate time, etc. The PB will meet on a regular basis during project implementation, at least twice per year, and it will have the responsibility of coordinating and harmonizing the actions of all the key stakeholders.
97. The project Management Unit (PMU): The PMU is composed of a National Project Manager (NPM), Finance and Administrative Officer, a Monitoring and Evaluation Expert (M&E) and three engineers. The PMU is responsible for the day-to-day management of the project activities and is accountable to the PB. The Project Management Unit’s overall role will be to ensure comprehensive technical and management support is provided to project activities and local beneficiaries, such as overseeing knowledge management and Monitoring and Evaluation. The PMU must have adequate multi-disciplinary technical capacity to be able to support technical, financial and assurance-related activities. The PMU will be established within MWRE and will coordinate its work with UNDP and other stakeholders. The Project Manager will report mainly to MWRE and share reports to UNDP and the PB. The Terms of Reference of the key project personnel are presented in Annex 8.3 of this Project Document. The project personnel will be selected on a competitive basis in accordance with the relevant UNDP rules and procedures and in consultation with the UNDP-GEF Region-based Technical Advisor.
98. The project manager will be supported by international and national experts taking the lead in the implementation of specific technical assistance components of the project. Contacts
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with experts and institutions in other countries that have already gained experience in developing and implementing renewable energy policies and financial support mechanisms are also to be established.
99. UNDP will maintain the oversight and management of the overall project budget. It will be responsible for monitoring project implementation, timely reporting of the progress to the UNDP Regional Centre and the GEF, as well as organising mandatory and possible complementary reviews and evaluations on an as-needed basis. Furthermore, it will support the coordination and networking with other related initiatives and institutions in the country.
100. To successfully reach the objective and outcomes of the project, it is essential that the progress of different project components is closely monitored both by the key local stakeholders and authorities as well as by project’s international experts, starting with the finalisation of the detailed, component-specific work plans and implementation arrangements and continuing through the project’s implementation phase. The purpose of this is to facilitate early identification of possible risks to successful completion of the project together with adaptive management and early corrective action, when needed.
101. In order to accord proper acknowledgement to the GEF for providing funding, a GEF logo should appear on all relevant GEF project publications, including any hardware purchased with GEF funds. Any citation on publications regarding projects funded by GEF should also accord proper acknowledgement to the GEF in accordance with the relevant GEF guidelines.
102. The international experiences and lessons-learned from catalysing local renewable energy development have been taken into account in the design of this new project. The activities of other donors and the foreseen synergies and opportunities for cooperation have been discussed in detail in Chapter 1.4 of this project document. During implementation, proper care will be taken to have adequate communication and coordination mechanisms in place to ensure that areas of common interest can be addressed in a cost-efficient way.
6. Monitoring Framework and Evaluation
The project will be monitored through the following M& E activities. The M& E budget is provided in the table below.
Project start: A Project Inception Workshop will be held within the first 2 months of project start with those with assigned roles in the project organisation structure, UNDP Country Office and, where appropriate/feasible, regional technical policy and programme advisors as well as other stakeholders. The Inception Workshop is crucial to building ownership for the project results and to plan the first year annual work plan.
The Inception Workshop should address a number of key issues including:
a) Assist all partners to fully understand and take ownership of the project. Detail the roles, support services and complementary responsibilities of UNDP CO and RCU staff vis à vis the project team. Discuss the roles, functions, and responsibilities within the project's decision-making structures,
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including reporting and communication lines, and conflict resolution mechanisms. The Terms of Reference for project staff will be discussed again as needed. b) Based on the project results framework and the relevant SOF (e.g. GEF) Tracking Tool if appropriate, finalise the first annual work plan. Review and agree on the indicators, targets and their means of verification, and recheck assumptions and risks. c) Provide a detailed overview of reporting, monitoring and evaluation (M&E) requirements. The Monitoring and Evaluation work plan and budget should be agreed and scheduled. d) Discuss financial reporting procedures and obligations, and arrangements for annual audit. e) Plan and schedule Project Board meetings. Roles and responsibilities of all project organisation structures should be clarified and meetings planned. The first Project Board meeting should be held within the first 12 months following the inception workshop.
An Inception Workshop report is a key reference document and must be prepared and shared with participants to formalize various agreements and plans decided during the meeting.
Quarterly: Progress made shall be monitored in the UNDP Enhanced Results Based Managment Platform. Based on the initial risk analysis submitted, the risk log shall be regularly updated in ATLAS. Risks become critical when the impact and probability are high. Note that for UNDP GEF projects, all financial risks associated with financial instruments such as revolving funds, micro-finance schemes, or capitalisation of ESCOs are automatically classified as critical on the basis of their innovative nature (high impact and uncertainty due to no previous experience justifies classification as critical). Based on the information recorded in Atlas, a Project Progress Reports (PPR) can be generated in the Executive Snapshot. Other ATLAS logs can be used to monitor issues, lessons learned etc. The use of these functions is a key indicator in the UNDP Executive Balanced Scorecard.
Annually: Annual Project Review/Project Implementation Reports (APR/PIR): This key report is prepared to monitor progress made since project start and in particular for the previous reporting period (30 June to 1 July). The APR/PIR combines both UNDP and SOF (e.g. GEF) reporting requirements.
The APR/PIR includes, but is not limited to, reporting on the following: Progress made toward project objective and project outcomes - each with indicators, baseline data and end-of-project targets (cumulative) Project outputs delivered per project outcome (annual). Lessons-learned/good practice. AWP and other expenditure reports Risk and adaptive management ATLAS QPR Portfolio level indicators (i.e. GEF focal area tracking tools) are used by most focal areas on an annual basis as well.
Periodic Monitoring through site visits: UNDP CO and the UNDP RCU will conduct visits to project sites based on the agreed schedule in the project's Inception Report/Annual Work Plan to assess first hand project progress. Other members of the Project Board may also join these visits. A Field Visit Report/BTOR will be prepared by the CO and UNDP
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RCU and will be circulated no less than one month after the visit to the project team and Project Board members.
Mid-term of project cycle: The project will undergo an independent Mid-Term Review at the mid-point of project implementation (2017). The Mid-Term Review will determine progress being made toward the achievement of outcomes and will identify course correction if needed. It will focus on the effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring decisions and actions; and will present initial lessons learned about project design, implementation and management. Findings of this review will be incorporated as recommendations for enhanced implementation during the final half of the project’s term. The organisation, terms of reference and timing of the Mid-Term Review will be decided after consultation between the parties to the project document. The Terms of Reference for this Mid-Term Review will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit and UNDP-GEF. The management response and the evaluation will be uploaded to UNDP corporate systems, in particular the UNDP Evaluation Office Evaluation Resource Centre (ERC).
The relevant SOF (GEF) Focal Area Tracking Tool will also be completed during the Mid-Term Review cycle.
End of Project: An independent Final Terminal Evaluation will take place three months prior to the final Project Board meeting and will be undertaken in accordance with UNDP and SOF (e.g. GEF) guidance. The final evaluation will focus on the delivery of the project’s results as initially planned (and as corrected after the Mid-Term Review, if any such correction took place). The final evaluation will look at impact and sustainability of results, including the contribution to capacity development and the achievement of global environmental benefits/goals. The Terms of Reference for this evaluation will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit and UNDP-GEF.
The Final Terminal Evaluation should also provide recommendations for follow-up activities and requires a management response which should be uploaded to PIMS and to the UNDP Evaluation Office Evaluation Resource Centre (ERC).
The relevant SOF (e.g. GEF) Focal Area Tracking Tool will also be completed during the final evaluation.
During the last three months, the project team will prepare the Project Terminal Report. This comprehensive report will summarise the results achieved (objectives, outcomes, outputs), lessons learned, problems met and areas where results may not have been achieved. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the project’s results.
Learning and knowledge sharing: Results from the project will be disseminated within and beyond the project intervention zone through existing information sharing networks and forums.
The project will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons-learned. The project will identify, analyze, and share lessons-learned that might be beneficial in the design and implementation of similar future projects.
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Finally, there will be a two-way flow of information between this project and other projects of a similar focus.
Communications and visibility requirements: Full compliance is required with UNDP’s Branding Guidelines. These can be accessed at http://intra.undp.org/coa/branding.shtml, and specific guidelines on UNDP logo use can be accessed at: http://intra.undp.org/branding/useOfLogo.html. Amongst other things, these guidelines describe when and how the UNDP logo needs to be used, as well as how the logos of donors to UNDP projects needs to be used. For the avoidance of any doubt, when logo use is required, the UNDP logo needs to be used alongside the GEF logo. The GEF logo can be accessed at: http://www.thegef.org/gef/GEF_logo. The UNDP logo can be accessed at http://intra.undp.org/coa/branding.shtml.
Full compliance is also required with the GEF’s Communication and Visibility Guidelines (the “GEF Guidelines”). The GEF Guidelines can be accessed at: http://www.thegef.org/gef/sites/thegef.org/files/documents/C.40.08_Branding_the_GEF%20final_0.pdf Amongst other things, the GEF Guidelines describe when and how the GEF logo needs to be used in project publications, vehicles, supplies and other project equipment. The GEF Guidelines also describe other GEF promotional requirements regarding press releases, press conferences, press visits, visits by Government officials, productions and other promotional items.
Where other agencies and project partners have provided support through co-financing, their branding policies and requirements should be similarly applied.
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M&E work plan and budget
Type of M&E Responsible Parties Budget US$ Time frame activity Excluding project team staff time Within first two Inception Workshop . Project Manager Indicative cost: 10,000 months of project and Report . UNDP CO, UNDP-GEF start up Measurement of Means . Project Manager will oversee the To be finalised in Inception Start, mid and end of of Verification of project hiring of specific studies and Phase and Workshop. project (during results. institutions, and delegate evaluation cycle) and responsibilities to relevant team annually when members. required. Measurement of Means . Oversight by Project Manager To be determined as part Annually prior to of Verification for . Project team of the Annual Work Plan's ARR/PIR and to the Project Progress on preparation. definition of annual output and work plans implementation ARR/PIR . Project manager and team None Annually . UNDP CO . UNDP RTA . UNDP GEF Periodic status/ . Project manager and team None Quarterly progress reports Mid-term Review . Project manager and team Indicative cost: 33,000 At the mid-point of . UNDP CO project . UNDP RCU implementation. . External Consultants (i.e. evaluation team) Final Evaluation . Project manager and team, Indicative cost : 40,000 At least three months . UNDP CO before the end of . UNDP RCU project . External Consultants (i.e. evaluation implementation team) Project Terminal Report . Project manager and team At least three months . UNDP CO 0 before the end of the . local consultant project Audit . UNDP CO Indicative cost per year: Yearly . Project manager and team 2,000 Visits to field sites . UNDP CO For GEF-supported Yearly . UNDP RCU (as appropriate) projects, paid from IA fees . Government representatives and operational budget TOTAL indicative COST Excluding project team staff time and UNDP staff and travel expenses US$ 93,000 (+/- 5% of total budget)
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Monitoring and Evaluation Plan Matrix ( SP / CPAP ) Expected CP related SP/related Indicators M&E Time or Responsibilities. Means of Risks Remarks on results outcomes if any outcomes if (with event schedule Verification: Resources development (Outcomes & any baselines & with data and of capacities outputs) indicative collectio frequency Data Source for targets) n of events and Type monitoring methods
Countries have Government and Growth and strengthened stakeholders development Total number Energy Annually Ministry of water Energy No resources Irregularity Country institutions to have evidence- are inclusive of joules of balance written resources consuming needed of wide Energy progressively based policies, and renewable assessm reports on (MWRE) sector (Report on the Ministries’ consuming deliver strategic plans sustainable, energy ent energy Reports report universal and mechanisms incorporating indicator is consumption balance part of the access to basic to ensure an productive (Joules) project services. Align enabling capacities activities ) with latest environment for that create UNDP improved basic employment ((291090 Strategic Plan services; and and kWh) people in Sudan, livelihoods Ministry of Energy with special for the poor Petroleum (MoP) consumption emphasis on and excluded Targets surveys ((592007 populations in need, have kWh) access to Number of equitable and kilowatt hours Project Project Ministry of water Electricity No resources Irregularity Country sustainable (kWh) of wind progress report on resources generation needed of wide Energy quality basic energy reports wind (MWRE) reports Ministries’ consuming services. generation (Report on the power indicator is report from UNDP- generation supported part of the project renewable energy activities ) projects (Baseline 0 KWh) (Target 300,917 kWh)
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7. Legal Context
This document, together with the CPAP signed by the Government and UNDP which is incorporated by reference, constitutes a Project Document as referred to in the SBAA [or other appropriate governing agreement] and all CPAP provisions apply to this document.
Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the safety and security of the implementing partner and its personnel and property, and of UNDP’s property in the implementing partner’s custody, rests with the implementing partner.
The implementing partner shall: Put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried; Assume all risks and liabilities related to the implementing partner’s security, and the full implementation of the security plan.
UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement.
The implementing partner agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via: http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document.
This project will be audited in accordance with UNDP Financial Regulations and Rules and applicable audit policies.
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8. Annexes
8.1 Risk Analysis
Date Impact & Countermeasures / Submitted, Last # Description Type Owner Status identified Probability Management response updated by Update 1 The security situation in Sudan may Political May prevent access to Advice on secure travel routes Project Board N/A N/A pose some risks or perceived risks. certain areas for within Sudan. An escort from Without general security, the ability of implementation of MWRE will be provided where crews to travel, transport goods and projects. necessary. work will be restricted. With renewable energy equipment, where the entire P = 2 The locations of main activities in capital is procured and installed I = 3 the project (Dongola, in the North upfront, theft or damage can mean a State, Red Sea, Khartoum) are complete loss of invested capital. secure and fall within the Minimal, Low or Moderate Threat Level areas identified by the UN (http://undss- sudan.org/files/docs/Sudan_SL S_Map.pdf).
2 The Government may fail to marshal Financial Lack of policy basis to Policy reform and decision making Government N/A N/A the necessary resources or catalyse adoption of can be slow in Sudan. coordination amongst its entities to wind energy design and implement the desired UNDP will rely on close relations policy changes. P = 2 with MWRE and other I = 5 counterparts. Through close participation, UNDP will aim to spur action.
Sudan’s need for electric power and previously demonstrated commitment to building power projects indicates that there is a will to move forward. The project supports existing government policy to encourage renewable
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Date Impact & Countermeasures / Submitted, Last # Description Type Owner Status identified Probability Management response updated by Update energy and bring private developers into the market. 3. Novelty and adoption risk – Private- Operational Slow uptake of wind There is considerable interest in Project Board N/A N/A sector entities in Sudan are slow to energy by market investment in Sudan, in particular adopt new technology and take-up participants. by countries in the region which unfamiliar business models. already have large agricultural P = 2 projects in Sudan. Investment in I = 4 infrastructure is seen as a means to support their other investments.
4 Technology risk – Technical failures, Operational Lower than anticipated Consultants hired for the project NA N/A N/A either due to equipment failure or bad electricity output of the will be tasked with studying and installation, can lead to poor public RE plants installed. emphasising appropriate image and loss of confidence. The technology for the ambient operating conditions, in particular heat, P = 2 environment. dust, and humidity (on the Red Sea I = 3 Coast), represent a challenging environment for wind farm equipment and thus a risk which will be mitigated through selection of equipment for these conditions. 5 Financial Risks – The Government can Financial Lack of financial Co-financing already committed Government be slow to adopt incentives to incentives and guarantees a minimum level of promote industries. This reflects in subsidised electricity activity in wind energy during the part the slow pace of policy reform will mean limited project years. Thereafter, the and decision-making in Sudan. incentive for the benefits of wind energy should be Generating the funds for capital- widespread use of wind well demonstrated to encourage intensive wind farms or for an power. Government action. expensive feed-in tariff are challenges for the Government. P = 3 The fuel savings, per I = 4 kilowatt-hour, from fossil fuel In addition, the private sector can be plants is comparable to the slow to react to incentives, particularly generation cost of wind. in areas of unknown technology such Therefore, the Government can as wind power. direct present resources spent on fossil fuel to purchasing or financing wind power. Sudan
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Date Impact & Countermeasures / Submitted, Last # Description Type Owner Status identified Probability Management response updated by Update Therefore, the long-term success of therefore has a financial incentive the wind energy market will depend to develop wind power. on adoption of financial incentives by the Government and the building of capacity to support the private sector’s reaction to these incentives. 6 Lack of adequate and reliable market Operational Reduced information on Close cooperation with the main National data to facilitate the monitoring of the reaction of the participants in the local wind Project project impacts and planning of further market to the measures energy market and MWRE to Manager policy measures. implemented. obtain the required data will be (NPM) emphasised. P = 2 I = 2 Robust MRV arrangements will be put in place, in particular for the NAMA. GHG monitoring can allow estimations of avoided costs (fuel imports, avoided thermal generation capacity, etc.) to be derived with a fair degree of accuracy.
7 Inadequate and/or non-capacitated Operational Project not meeting the The project includes significant National N/A N/A human resources to successfully stated targets. capacity building and outreach Project implement the project and support the components to help overcome Manager mainstreaming of its results. this risk. The project will use the (NPM) P = 1 individuals trained to implement I = 5 power plants under the project, thereby providing immediate use for the knowledge they have acquired and providing them with immediate income from it.
8 Adverse impacts on residents and Environmental Sufficiently severe This can be mitigated in part Government ecosystems (e.g. soaring birds) serve to / social risk impacts on local through collaboration with the disrupt or delay wind farm communities or UNDP-implemented, GEF-financed implementation. ecosystems to disrupt biodiversity project, implementation or “Mainstreaming Conservation of jeopardise funding (e.g. Migratory Soaring Birds into the
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Date Impact & Countermeasures / Submitted, Last # Description Type Owner Status identified Probability Management response updated by Update from international Key Productive Sectors Along the development banks and Rift Valley/Red Sea Flyway”. donors). A protocol will be developed to P=2 reduce the avian strike risk. I=3 9 Climate Change Risk Environmental A shift in wind patterns Consideration of long term wind Government Risk due to global warming patterns and expected shifts as a could adversely affect consequence of warming should the wind farms. A shift be taken into account when the in rainfall causing less wind farms are planned. flow on the Nile could reduce hydro-power making wind more important
P=2 I=2 10 Risk to settlements Social Risk Wind farms may disturb Wind farms should only be sited Government settlers by causing on areas sufficiently far from noise or light flicker. populations to avoid disturbance.
P=1 I=2
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8.2 Stakeholder involvement plan
Stakeholder Role Ministry of Water The principal role of MWRE is the implementation of Dongola wind farm Resources and Electricity and to formulate policies, strategies and action plans for the supply of electricity in Sudan, with a key focus on diversifying Sudan’s electricity mix to include renewables. MWRE will be responsible for implementing the proposed project. Renewable Energy The Renewable Energy Directorate is carrying out extensive wind Directorate, Ministry of energy resource mapping along the Red Sea coast that will provide input Petroleum for the future development of wind farms in the Red Sea region. Higher Council for As the Government Project Coordinator for climate change under the Environment and Natural UNFCCC, HCENR is responsible for coordinating National Resources (HCENR) Communications, the development of Climate Change Action Plans, NAPAs, Technology Needs Assessments and NAMAs. As the focal point for UNFCCC, HCENR is the official Government entity responsible for NAMAs. A study recently completed by HCENR that recommends wind energy being developed as a NAMA. Accompanying the development of NAMAs, HCENR has a specific plan to develop a Low Emission Development Strategy for Sudan as an umbrella structure for NAMAs.
Further, HCENR is the Designated National Authority (DNA) and is central to carbon finance activities in Sudan. HCENR is also responsible for assessing EIAs and SIAs for wind farm developments in Sudan in accordance with the Environment Protection Act. National Energy NERC is the primary institute at the national level for conducting Research Centre (under research on renewables in Sudan, as well as pilot project the Ministry of Science implementation. NERC is also involved in all climate change-related and Technology) studies that are completed under the UNFCCC. Ministry of Environment, The Under-Secretary of MEFPD is the GEF Operational Focal Point. Forestry and Physical HCENR is a part of the MEFPD. Development (MEFPD)
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8.3 Terms of Reference for Project Personnel
Project Board
Duties and responsibilities: The Project Board (PB) is the main body to supervise the project implementation in accordance with UNDP rules and regulations and referring to the specific objectives and the outcomes of the project with their agreed performance indicators.
The main functions of the PB are:
General monitoring of project progress in meeting its objectives and outcomes and ensuring that they continue to be in line with national development objectives; Facilitating the co-operation between the different Government entities, whose inputs are required for successful implementation of the project, ensuring access to the required information and resolving eventual conflict situations raising during the project implementation when trying to meet its outcomes and stated targets; Supporting the elaboration, processing and adoption of the required institutional, legal and regulatory changes to support the project objectives and overcoming of related barriers; Facilitating and supporting other measures to minimize the identified risks to project success, remove bottlenecks and resolve eventual conflicts; Approval of the annual work plans and progress reports, the first plan being prepared at the outset of project implementation; Approval of the project management arrangements; and Approval of any amendments to be made in the project strategy that may arise due to changing circumstances, after careful analysis and discussion of the ways to solve problems.
PB Structure and Reimbursement of Costs The PB will be chaired by MWRE. The PB will include representatives from UNDP, the key Ministries, Agencies involved in the project and, as applicable, representatives of the project’s other co-financing partners and a representative from the Sudanese Businessmen and Employers Federation.
The costs of the PB’s work shall be considered as the Government’s or other project partners’ voluntary in- kind contribution to the project and shall not be paid separately by the project. Members of the PB are also not eligible to receive any monetary compensation from their work as experts or advisers to the project.
Meetings It is suggested that the PB will meet at least once a year, including the annual Tripartite Review (TPR) meeting. A tentative schedule of the PB meetings will be agreed as a part of the annual work plans, and all representatives of the PB should be notified again in writing 14 days prior to the agreed date of the meeting. The meeting will be organized provided that the executing agency, UNDP and at least 2/3 of the other members of the PB can confirm their attendance. The project manager shall distribute all materials associated with the meeting agenda at least 5 working days in prior to the meeting.
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Government Project Coordinator As a representative of the Government and the project’s executing agency, the Government Project Coordinator has the main responsibility to ensure that the project is executed in accordance with the Project Document and the UNDP guidelines for nationally executed projects.
His/her main duties and responsibilities include: Coordinate and guide the work of the Project Manager with the work of the national implementing agency through meetings at regular intervals to receive project progress reports and provide guidance on policy issues; Certifying the annual and, as applicable, quarterly work plans, financial reports, and ensuring their accuracy and consistency with the project document and its agreed amendments; Taking the lead in developing linkages with the relevant authorities at national, provincial and governmental level and supporting the project in resolving any institutional- or policy-related conflicts that may emerge during its implementation.
Project technical committee (PTC) The technical committee is an advisory body supporting the project management unit to implement the project document on a scientific and knowledge based manner. It represent a think-tank for the project implementation. The Technical Committee is responsible for all aspects of the technical specifications and processes. This includes:
Provide guidance and advices on implementation of technical specifications during implementation of the PRODOC. Define specification change proposals and propose actions for the project managers (acceptance, rejection, and conditional acceptance); The PTC provides an open forum for professional discussion of issues and items related to grid connected wind power generation; Work on technical problems arise during the installation and operation of the wind farm; To discuss specific technology or grid requirements for interconnection and interoperability;
PTC Structure and Reimbursement of Costs The PTC is formed from persons with technical knowledge and scientific capabilities in both wind energy and electrical power generation from relevant universities’ professors, private sector, national consultants and international consultants. The costs of the PTC’s work shall also be considered as the Government’s or other project partners’ voluntary in-kind contribution to the project and shall not be paid separately by the project. However, specific technical operations required to be undertaken by the PTC such as testing, measurements, analysis and modeling as requested by the project manager are to be paid for by the project.
PTC meetings The meetings or the PTC is proposed to take place on quarterly basis during the first year of the implementation and then for the succeeding years the meeting will held on biannual basis. The project manager also can request the PTC to summon to discuss urgent technical issues. The PTC reports all its activities to the project manager.
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Project Manager (full-time)
Duties and responsibilities: Operational project management in accordance with the Project Document and the UNDP guidelines and procedures for nationally implemented projects, including:
General coordination, management and supervision of project implementation; Managing the procurement and the project budget under the supervision of UNDP to assure timely involvement of local and international experts, organisation of training and public outreach, purchase of required equipment etc. in accordance with UNDP rules and procedures; Submission of annual Project Implementation Reviews and other required progress reports (such QPRs) to the PB, Executing Agency and the UNDP in accordance with the section “Monitoring and Evaluation” of the Project Document; Ensuring effective dissemination of, and access to, information on project activities and results, (including a regularly updated project website); Supervising and coordinating the contracts of the experts working for the project; As applicable, communicating with the project’s international partners and attracting additional financing in order to fulfill the project objectives; and Ensuring otherwise successful completion of the project in accordance with the stated outcomes and performance indicators summarized in the project’s log frame matrix and within the planned schedule and budget.
Expected Qualifications: Advanced university degree and at least 6 years of professional experience or university degree with 8 years of professional experience in the specific areas the project is dealing with, such as wind farms, wind development and wind resource assessment, including solid knowledge of international renewable energy experiences, state-of-the-art approaches, and best practices in catalysing the renewable energy market (by applying different policy measures, new financing mechanisms, etc.) Experience in managing projects of similar complexity and nature, including demonstrated capacity to actively explore new, innovative implementation and financing mechanisms to achieve the project objective; Demonstrated experience and success in the engagement of, and working with, the private sector and NGOs, creating partnerships and leveraging financing for activities of common interest; Good analytical and problem-solving skills and the related ability to adaptively manage with prompt action on the conclusion and recommendations coming out from the project’s regular monitoring and self-assessment activities as well as from periodic external evaluations; Ability and demonstrated success to work in a team, to effectively organise it, and to motivate its members and other project counterparts to effectively work towards the project’s objective and expected outcomes; Good communication skills and competence in handling project’s external relations at all levels; Fluent/good knowledge of the Arabic and English languages; Experience in developing countries, and preferably in North Africa; and Familiarity and prior experience with UNDP is considered an asset.
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Project Administrative Associate (full-time)
Duties and responsibilities: Supporting the project manager in the implementation of the project, including:
Responsibility for logistics and administrative support of project implementation, including administrative management of the project budget, required procurement support, etc. Maintaining up to date business and financial documentation, in accordance with UNDP and other project reporting requirements; Organising meetings, business correspondence and other communications with the project partners; Supporting the project outreach and PR activities in general, including keeping the project web-site up to date; Managing the projects files and supporting the project manager in preparing the required financial and other reports required for monitoring and supervision of the project progress; Supporting the project manager in managing contracts, in organizing correspondence and in ensuring effective implementation of the project otherwise.
Expected Qualifications: Fluent/good knowledge of the Arabic and English languages. Demonstrated experience and success of work in a similar position Experience working in developing countries, preferably Sudan. Good administration and interpersonal skills. Ability to work effectively under pressure. Good computer skills.
National Project Engineers (3 outposted by MWRE) IT, mechanical and electrical engineers will be outposted by the MWRE to the project management unit and provide the project manager with the technical data to share with the Grid Control Centre. The project engineers work together to undertake the following responsibilities: Monitor and analyses wind data Monitor and analyses the power output, ramp rates, frequency control and voltage control. Write technical reports on the performance of the wind farm. Modeling of the wind farms in other sites like Red Sea. Participates in training and exchange of knowledge between the different stakeholders involved in the project.
Qualifications: Fluent/good knowledge of the Arabic and English languages. Abilities to analyse and present high volume of data on-line accurately and in easy to understand way. Demonstrate abilities to detail with a high degree of accuracy the wind and power performance data. Abilities to perform routine, repetitive tasks accurately. Abilities to maintain records and files for easy access and retrieval.
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8.4 GHG Reduction Calculations
Direct GHG Emission Reductions The calculation is presented in three steps: 1- Calculation of an emissions factor for electricity displaced by project electricity 2- Calculation of the electricity generated by the project, according to GEF Guidelines 3- Calculation of GHG emissions avoided
At each step, the most conservative assumptions are used.
Step 1: The weighted average grid emission factor in Sudan for operational plants and expected plants is 0.305 40 tonnes CO2/MWh.
Step 2: The Dongola wind farm lifespan is calculated as being 20 years, in accordance with GEF guidelines. The annual net energy production is taken as 300,917 MWh/year. 41
Step 3: Multiplying the average grid emission factor by the calculated energy generated from wind energy as a result of the project, the avoided greenhouse gas emissions over 20 years are 1,835,600 tonnes CO2.
The Dongola wind farm would be constructed in the baseline, even without GEF assistance. However, the UNDP-implemented, GEF-financed project will enhance operation of the wind farm (through amendment of wind farm specifications; supervision of construction; and training for MWRE staff on project implementation and management, operational best practices and monitoring, and maintaining turbine blade efficiency in a dusty climate) and will enhance the ability of the wind farm to supply reliable electricity to the grid (through a grid study and assessment of interconnection equipment and grid interface electronics).
Conservatively, the GEF ‘causality’ for the emission reductions associated with Dongola wind farm is assessed to be 40% (“The GEF contribution is modest, and substantial emission reductions can be attributed to the baseline”). Therefore, the direct emission reductions arising from Dongola wind farm are calculated as:
0.4 x 1,835,600 tCO2 = 734,200 tCO2.
Indirect GHG Emission Reductions
Top-down analysis:
Given that the project deals with a limited number of known wind farms instead of a large number of small power sources (as is the case with PV, for example), a bottom-up approach is more appropriate for calculation of indirect emissions.
Bottom-up analysis:
40 100 MW Wind Power Project – Dongola Project Design Document. 41 Lahmayer International (2011), Feasibility Study Report: 100 MW Dongola Wind Farm.
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The GEF guidelines provide a formula for bottom-up emissions assessment as:
CO2 indirect BU = CO2 direct * RF where RF is a Replication Factor. The replication factor for this project is 2.2, as 220 MW of wind farms are intended beyond the 100 MW Dongola wind farm that is included as part of the project. The energy production from these wind farms is estimated at 428,400 MWh/year, based on the wind resource available at the proposed sites.42,43
The associated greenhouse gas reductions in the 10 year post-project period are therefore:
428,400 MWh/year × 0.305 tonnes CO2/MWh × 10 years = 1,306,620 tonnes CO2.
Applying a 40% causality factor (with similar reasoning as for the direct emission reductions), the indirect emission reductions are estimated as:
0.4 x 1,306,620 tCO2 = 522,648 tCO2.
8.5 Consideration of Bird Migration and Ecological Impacts
The Environmental and Social Impact Assessment for the 100 MW Dongola Wind Farm does not indicate that an ornithological assessment has been undertaken. It does indicate that 50 bird species have been recorded there, though it does not mention 3 of the 4 threatened species which could be expected to be there based on sensitivity mapping. Three of the threatened species highlighted in the Migratory Soaring Birds Tool sensitivity map as potentially occurring – the Lappet-Faced Vulture, Egyptian Vulture and Eastern Imperial Eagle – are also of high vulnerability to collision with wind farms.
The ESIA report further states that “a bird survey in one of the migration seasons (a 15-day survey between March and May or August and October)” should be undertaken during construction”. But this would be at too late a juncture to apply mitigation or micro-siting readjustment to consider any possible action arising out of this survey.
As part of the project preparation phase for the UNDP-implemented, GEF-financed project, a preliminary assessment of the potential impact of the Dongola wind farm on species in the region was performed.
The assessment relied on a site visit by Mr. Marcus Kohler of Bird Life International, and on the use of the Migratory Soaring Birds Tool (MSB Tool) developed as part of the UNDP-implemented, GEF-financed Migratory Soaring Birds project. The tool is intended as a source of preliminary site-scale information to be accessed at the earliest stages of the development planning process. It is designed to inform and complement subsequent Environmental Impact Assessments (EIAs) and is considered a complement, not an alternative, to detailed, on-the-ground evaluations.
42 Lahmayer International (2011, Feasibility Study Report: 20 MW Nyala Wind Farm. 43 Lahmayer International (2011), Feasibility Study Report: 180 MW Red Sea Wind Farm.
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The site visit did not reveal that the site is of high ecological importance. There were no significant wildlife observations during the period spent on-site. Mr. Kohler did recommend that appropriate ornithological surveys be undertaken. The MSB Tool presents information on 83 species of migratory soaring bird that occur across the Middle East and north-east Africa. Although this is a group of species at particular risk of collision with turbines, it is obviously important that wind developers consider all the biodiversity impacts associated with a project. It is recommended that in further assessments carried out as part of the project, the Integrated Biodiversity Assessment Tool (IBAT) be used in addition to site surveying as the most authoritative source of wider biodiversity information.
The MSB Tool presents information from a number of sources, primarily Important Bird and Biodiversity Areas (IBAs). However, it should be noted that Sudan is an especially data-poor country. The information currently available for the Dongola project areas is limited. A search at Dongola (20km radius) produces only seven satellite tracking records for White Stork and a forecast that 16 species of soaring birds may potentially occur within the area, as shown in Figures 14 and 15 of this Project Document, and the screen capture from the MSB Tool below. They show the results of a single point search (buffered to 20km), centred on Dongola town (Decimal degrees—LON: 30.48, LAT: 19.167).
The assessment places the site in the unknown sensitivity category. However, this does not mean that the site is necessarily of no importance for soaring birds. It simply indicates that this area has not been subject to any systematic avian surveys. This is expected as very little ornithological research has been undertaken in this part of Sudan. The ornithological surveys to be conducted as part of the UNDP-implemented, GEF- financed project will be valuable not only to the Dongola project, but also to contributing to the MSB Tool database.
Despite the limited data available for this region, the assessment does include some useful information. For instance, it shows that seven satellite tagged White Stork have passed through the site. Although this is a relatively small number, only a tiny fraction of the world’s White Stork have been fitted with satellite transmitters, so this could signify a far greater movement of this species through the area – perhaps involving hundreds of birds. If the assessment buffer is increased to 50 km than the site intersects with 23 white Stork tracks and one Peregrine Falcon track.
The assessment also shows that the known ranges of a number of globally-threatened species with high inherent vulnerability to collision (SVI scores) could potentially occur in the area. These include declining species such as the Lappet-faced Vulture, Saker Falcon and Eastern Imperial Eagle.
It is important to note that the tool only deals with soaring bird species and the Dongola site should also be assessed in terms of other vulnerable taxonomic group, both avian (e.g. bustards) and non-avian (e.g. bats).
A more detailed ornithological survey will be carried out as part of the UNDP-implemented, GEF-financed project.
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8.6 Environmental and Social Safeguards
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8.7 Letters of Co-financing
HCENR Letter of Co-Financing
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Ministry of Petroleum Letter of Co-Financing
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Ministry of Water Resources and Electricity Letter of Co-Financing
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National Energy Research Centre Letter of Co-Financing
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UNDP Letter of Co-Financing
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