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Wind Energy Applications in Eritrea

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Wind Energy Applications in Eritrea GOVERNMENT OF ERITREA UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) GLOBAL ENVIRONMENT FACILITY (GEF) (PROJECT NO. 00031458) WIND ENERGY APPLICATIONS IN ERITREA TERMINATION REVIEW First Draft February 2009 Ikhupuleng Dube Table of Contents 1 INTRODUCTION ........................................................................................................................ 7 1.1 Purpose of the evaluation ........................................................................................................ 10 1.2 Key issues addressed ............................................................................................................... 10 1.3 Methodology and structure of the evaluation ......................................................................... 12 2 THE PROJECT AND ITS DEVELOPMENT CONTEXT ........................................................ 27 2.1 Project start and its duration ................................................................................................... 27 2.2 Problems that the project seeks to address .............................................................................. 27 2.3 Immediate and development objectives of the project ............................................................ 32 2.4 Main stakeholders ................................................................................................................... 33 2.5 Results expected ...................................................................................................................... 35 3 PROGRESS MADE TOWARDS ATTAINMENT OF OBJECTIVES ..................................... 36 3.1.1 Capacity Building and Awareness Creation ........................................................................ 40 3.1.2 Installation of the Assab Wind Farm ................................................................................... 48 3.1.3 Installation of Eight Small-Scale Decentralized Systems in Rural Villages ....................... 53 3.2 Review of the Logical Framework.......................................................................................... 56 3.4.1 Reduction in greenhouse gas emissions .............................................................................. 53 3.4.2 Informed and equipped Institutional Framework for renewable energy ............................. 54 3.4.3 Improvement to quality of life (health and employment creation) ..................................... 56 3.5 Implementation approach and Project ownership ................................................................... 63 3.6 Country ownership/Driveness and Stakeholder Participation ................................................ 66 3.7 Replication approach............................................................................................................... 70 3.8 Cost-effectiveness ................................................................................................................... 76 3.10 Linkages between project and other interventions within the sector ...................................... 78 3.11 Management arrangements ..................................................................................................... 81 3.12 Financial Planning................................................................................................................... 82 3.13 Monitoring and evaluation ...................................................................................................... 84 3.14 Sustainability ........................................................................................................................... 85 3.15 Extent of Incorporation of the Mid-Term Review recommendations ..................................... 86 3.16 Exit Strategy ............................................................................................................................ 88 3.17 Recommendations ................................................................................................................... 89 2 LIST OF ABBREVIATIONS AFREPREN Africa Energy Research Network APR Annual Project Report (UNDP) CDM Clean Development Mechanism CO2 Carbon dioxide DoE Department of Energy, Ministry of Energy and Mines EEC Eritrea Electricity Corporation ERTC Energy Research and Training Centre EU European Union FINESSE AfDB Renewable Energy Programme GEF Global Environment Facility GoE Government of Eritrea ICB International Competitive Bidding ICSU International Council for Science Kg Kilo-gram kVA kilovolt-hours kWh kilowatt/kilowatt hour LPG Liquefied petroleum gas m/s meters per second MEM Ministry of Energy and Mines MDG Millenium Development Goals MW/MWh megawatt/megawatt hour NFA nakfa O&M operations and maintenance PCE Petroleum Corporation of Eritrea PDF-B Project Development Framework B PIR Project Implementation Report PMU Project Management Unit PPA Power Purchase Agreement Prodoc Project Document PV photovoltaic RETS Renewable Energy Technologies SCADA System Control and Data Acquisition SIDA Swedish International Development Agency SME small and medium enterprise TA Technical Advisor TPR Tri-partite Review UN United Nations UNDP United Nations Development Programme UNIDO United Nations Industrial Development Organisation US$ United States dollar (= nakfa 15.0) WIS Wind Information System 3 EXECUTIVE SUMMARY Eritrea, has acute shortage of modern forms of energy, especially in its rural areas. According to DoE, total power consumption was estimated at 619,580 toe of which 68% was accounted by the household sector, 16% by the commercial/public sector, 13% by transport and 3% by industry. Biomass at 66.3%, contributed the largest share of final energy supply. Oil products on the other hand provided 31,6 % of the final supply and electricity a mere 2.1%. All the electricity was generated by thermal means using oil products. The DoE survey further reveals that more than 95% of the rural population and 20% of the urban residents do not have access to electricity. If Eritrea is to meet economic and social goals, huge investments in energy infrastructure and delivery systems will be needed because of the unavailability of energy resources such as hydro, coal, oil or gas reserves. Eritrea is though, endowed with the abundance of renewable energy sources, whose harnessing would meet some of the challenges in the supply of energy. This country has abundance of solar radiation throughout the whole year, undeveloped geothermal potential and good wind energy regimes. In the case of wind, preliminary analysis has shown that there is significant wind energy potential in Eritrea. To investigate and verify this, a study, funded by SIDA, was conducted by installing 25 meteorological stations in various parts of the country. The outcome of this study verified not only that there is a large wind resource potential in the region, but also confirmed that there are locations with favorable wind conditions in the middle and northern regions of Eritrea (refer to map below). Wind in these regions, could be widely adopted to provide sustainable energy supplies. However, before this could be achieved, several barriers, such as Capacity /Institutional Barriers, Awareness/ Experience Barriers and Technical Barriers, would need to be addressed. Inline with this background, this project, which is funded by GEF/UNDP/GoE was initiated. The project is to pilot wind energy technology in the wind rich areas (Assab, Edi, Gahro, Gizgiza, Rahaita, Berasole, Beylul and Dekamhare) of the country. Upon the achievement of feasible results, the aim is to replicate it in other parts of the country. The project implementation is expected to improve the rural communities livelihoods by providing access to sustainable energy services and contribute to reuction of greenhouse gases. Furthermore, the project is expected to remove the identified barriers and contribute to an informed, equipped and sustained policy framework in wind energy adoption and dissemination. The three immediate objectives of the project are: (1) To develop necessary personnel and institutional capacities to plan, install, operate and manage on- and off grid wind systems and increase awareness amongst decision makers in governmental and private institutions both at the community and central level. (2) To install a small wind farm in Assab and integrate the wind generated electricity into an existing conventional electricity grid thus demonstrating that on-grid wind energy is technically, financially, and institutionally feasible and can be a least cost electricity supply possibility in Eritrea at high wind speed sites. 4 (3) To install eight small scale decentralized wind stand-alone and wind-diesel hybrid systems in the selected wind rich villages and production sites of Eritrea to demonstrate the technical, financial, institutional and socio-economic viability of off-grid wind energy systems. The main objective of this evaluation therefore, is to provide the project partners i.e. GEF, UNDP, GoE and any other interested parties with an independent review of the project achievements according to a set criteria of a number of objectives and outcome as outlined in the Prodoc and as contained in the terms of reference. The project has immersely contributed to the removal of technical and institutional barriers affetecting the dissemination of renewable energy technolgies. It has satisfactorly increased institutional delivery, in terms of capacity building and improved awareness. Available evidence, points to the successful
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