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 UNDP Environnemental Finance Services Page 1 UNDP Environnemental Finance Services Page 2 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 UNDP Environnemental Finance Services Page 3 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 UNDP Environnemental Finance Services Page 4 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 UNDP Environnemental Finance Services Page 5 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. UNDP Environnemental Finance Services Page 6 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