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00039112 FINAL Apolima PV Pro Doc 120405 Electric Power Corporation (EPC) Government of Samoa United Nations Development Programme (UNDP) Organisation for Sustainable Energy, Denmark Access to Sustainable Power Services – Apolima Island The Government of Samoa through the Electric Power Corporation (EPC) and in cooperation with UNDP and the Danish NGO the Organisation for Sustainable Development will replace the current diesel generator with photovoltaic (PV) based power systems on Apolima Island. The expected overall outcome is to improve livelihoods through a reliable, effective and environmentally friendly 24-hours power supply for the nine (9) households and one (1) church on Apolima Island including PV based streetligts. 1 TABLE OF CONTENTS PART I: SITUATIONAL ANALYSIS 3 PART II: STRATEGY 3 PART III: MANAGEMENT ARRANGEMENTS 8 PART IV: MONITORING AND EVALUATION 9 PART V: LEGAL CONTEXT 11 PART VI: PROJECT RESULTS AND RESOURCES FRAMEWORK 12 PART VII: TOTAL WORK PLAN AND BUDGET 17 PART VIII: OTHER ARRANGEMENTS 18 ANNEX A: Acronyms ANNEX B: Feasibility Study: Possible Future Power Supply Options for Apolima Tai, Samoa, Final Report, March 2003, prepared for UNDP Samoa/UNESCO Apia by Mr. Gerhard Zieroth ANNEX C: Apolima Island Photovoltaic (PV) Project, Concept Paper, 24 April 2004, Compiled by UNDP Samoa in Corporation with EPC and the Government of Samoa ANNEX D: Minutes of UNDP Local Program Appraisal Committee (LPAC) Meeting, 2 February 2005 ANNEX E: Terms of Reference for Design Specification Consultancy ANNEX F: Terms of Reference for Installation Supervision Consultancy ANNEX G: Terms of Reference for Final Evaluation Consultancy ANNEX H: Confirmation of Budget Allocation, Ministry of Finance, Government of Samoa, 26 November 2004 2 PART I: SITUATION ANALYSIS At the local level Apolima electricity supply currently faces a number of problems that need to be addressed. Firstly, from the perspective of the residents of Apolima there is a lack of 24 hours supply. Secondly, some households are bothered by the noise emissions of the diesel generator. Thirdly, the Electric Power Corporation (EPC) is confronted with an inefficient operation that suffers a high level of technical and non-technical losses (and requires relatively significant subsidies). Finally, there is environmental pollution by waste oil and fuel. This is documented in a feasibility study that was undertaken in 2003 (please refer to Annex B for details). At the national level in 2001 census indicated that 93% of Samoa’s 23,079 households were electrified. Most of the remaining 1,600 or so un-electrified households live relatively close to distribution lines. Some have not connected mainly because of the high initial costs. Although the connection fee is ST120 for those close to a grid where a new transformer is not necessary, it is very costly for those who require a transformer or live several hundred metres from the grid. Furthermore similar to the other Pacific Island Countries (PICs), Samoa is very much aware and concerned about environmental degradation and global warming and their detrimental effects. Samoa has no conventional energy resources (e.g., oil and gas) that it can utilize to meet its energy needs. Today commercial energy requirements in Samoa are primarily met by petroleum products, which are used mainly for transportation and power production. Presently, the country is increasingly reliant on imported fuels to satisfy its energy needs. The bulk of these fuel imports is diesel fuel oil (DFO), which is mainly used for power generation by the EPC. In UNDP’s Country Programme Outline (CPO)1 for Samoa (2003-2007) it is stressed that vulnerability in Samoa not only relates to the social dimension but also to the natural resource base. As a result of changing production and consumption patterns, population pressures and external factors such as climate change, the land and marine resources of the country face increased stress that could threaten the livelihoods of many people. Concerning future challenges its is mentioned that Samoa faces a number of medium-to-long term challenges among others revolving around managing pressures on the environment and sustainable use of natural resources. PART II: STRATEGY The following overall technical realistic options were investigated in the feasibility study: i) upgrade existing diesel system (i.e. new genset, new powerhouse relocated, prepaid meters, training and Demand Side Management (DSM)); ii) undersea cable (from mainland via Manono Island); iii) centralised solar; iv) solar-diesel hybrid; and v) distributed solar/Solar Home Systems (SHSs). With regard to these options the conclusion was that a distributed solar solution - i.e. SHSs - is superior from almost all viewpoints. The solution is technically simple, reduces the risk of total loss of power significantly as compared to all central solutions, and involves the lowest economic cost under a variety of scenarios. In addition it does not involve any noise pollution. Perhaps the greatest benefit compared to diesel-based operations is the elimination of the 1 The CPO is based on the Strategy for the Development of Samoa (SDS) 2002-2004, the United Nations Common Country Assessment (CCA) and the priorities identified in the United Nations Development Assistance Framework (UNDAF) for 2002. 3 environmental hazards related to inadequate handling of fuel and waste oil, currently a problem on the island. In addition the study concluded that the level of complexity of distributed solar technology is not beyond general technical capabilities found in Samoa. In fact, Samoa would not have to go through the sometimes hard learning process that other PICs have experienced, who started to introduce distributed solar electrification 20 years ago. A lot can be learned from the neighbours (e.g. Kiribati) who have been using and optimising solar systems and institutional models for years. But distributed solar option has not been a mainstream solution in Samoa. As a consequence there is little institutional knowledge or commercial structure to support a project of this nature. On the other hand, this could be taken as an argument in favour of a renewable energy solution as well. As pressure increases on EPC to become an more efficient, commercially viable provider of electricity, they would like to learn about feasible options for heavily subsidized parts of its operation and use technologies that are better adopted to low load densities. Thus a pilot project to test a different approach is welcomed. To remedy the situation on Apolima island and address the development challenges in the area of power and reflecting the findings and recommendations from the feasibility study and building on the subsequent concept paper developed based hereon (please refer to Annex C) the Access to Sustainable Power Services – Apolima Island project (the “Project” for short) will provide SHS and support activities. The expected overall outcome of the Project is to improve livelihoods through a reliable, effective and environmentally friendly 24-hours power supply for the nine (9) households and one (1) church on Apolima Island including PV based streetlights. This will be achieved via the following set of overall activities: 1) prepare hardware specifications; 2) prepare solicitation documents; 3) issue quotes; 4) undertake evaluation of quotes and award of contract(s); 5) outline and apply Renewable Energy Service Company (RESCO) structure and principles to the Project; 6) undertake supply and installation of PV equipment; 7) undertake installation supervision; 8) undertake commissioning; 9) undertake training; and 10) undertake final independent evaluation. For detailing of these overall activities please refer to Part VI: Project Results and Resource Framework. Cross-cutting for all these activities are monitoring activities which is elaborated in Part IV: Monitoring and Evaluation. This intervention supports and are fully in line the development strategies, policies, plans, and frameworks of the Government of Samoa, EPC, and the United Nations (UN) including UNDP. In addition it will compliment and link to already ongoing related activities in Samoa and in other PICs. This is elaborated below. The title of the Strategy for Development of Samoa (SDS) 2002-2004 is ‘Opportunities for All’. The Government of Samoa through the SDS recognizes that access to safe, efficient, and reliable infrastructure and services including electricity are important for an improved quality of life. Government aims to provide efficient and effective infrastructure and services not only to the town areas but also to the rural and remote areas of Samoa. One of the 9 key strategic outcomes identified in the SDS is improved infrastructure and services. Under this strategic outcome it is specified that development, among others, will concentrate on further improving electricity generation and distribution and environmental protection. Furthermore it mentioned that the Rural Electrification Program would continue. 4 A National Energy Policy (NEP) is currently under preparation. It is to be expected that NEP will give very high priority to renewable energy. In addition further energy diversification in the power sector based on indigenous energy sources will also be promoted and encouraged. Although the country is expected to continue to rely on imported fuels for much of its energy needs, renewable energy (RE) forms such as solar, wind, biomass, hydro, and geothermal energy are recognized as potential energy alternatives. Hydro resources are currently
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