SREP/SC.13/5 April 20, 2015 Meeting of the SREP Sub-Committee Washington D.C. Wednesday, May 13, 2015 Agenda Item 5 SREP INVESTMENT PLAN FOR HAITI PROPOSED DECISION The SREP Sub-Committee, having reviewed document SREP/SC.13/5, SREP Investment Plan for Haiti, a) endorses the investment plan as a basis for the further development of the projects and programs foreseen in the plan and takes note of the request for USD 30 million in SREP funding. The Sub-Committee requests the Government of Haiti, in the further development of the proposed projects and programs, to take into account comments made at the meeting and any additional written comments submitted by Sub-Committee members by May 29, 2015, and to respond in writing to questions raised during the meeting and in subsequent written comments; b) reconfirms its decision on the allocation of resources, adopted at its meeting in November 2010, that all allocation amounts are indicative for planning purposes and that approval of funding will be on the basis of high quality investment plans and projects; c) takes note of the estimated budget of USD 428,000 for MDB project preparation and supervision services for the project entitled, Renewable Energy for the Metropolitan Area (IBRD), and approves USD 128,000 as a first tranche of funding for such services; d) takes note of the estimated budget of USD 428,000 for MDB project preparation and supervision services for the project entitled, Renewable Energy and Access for All (IBRD), and approves USD 128,000 as a first tranche of funding for such services; e) further takes note of the estimated budget of USD 440,000 for MDB project preparation and supervision services for the project entitled, Off‐grid Electricity Services for Productive, Social and Household Uses Project (IFC). SCALING‐UP RENEWABLE ENERGY PROGRAM (SREP) INVESTMENT PLAN FOR HAITI Climate Investment Funds SCALING‐UP RENEWABLE ENERGY PROGRAM (SREP) SREP Investment Plan for Haiti APRIL 15, 2015 1 CONTENTS Acronyms and Abbreviations .............................................................................................................................. 5 Foreword ...................................................................................................................................................................... 7 Executive Summary ................................................................................................................................................. 8 1 Country Context: Energy Status and Policies .................................................................................. 18 1.1 Haiti’s Development Status .......................................................................................................................... 19 1.2 Energy Consumption ....................................................................................................................................... 20 1.3 Electricity Generation, Transmission, and Distribution ................................................................... 21 1.4 Electricity Sector Institutional Framework ........................................................................................... 23 1.5 Role of the Private Sector .............................................................................................................................. 24 1.6 Energy Policy and Strategic Framework ................................................................................................ 25 1.7 The Rural Electrification Challenge .......................................................................................................... 28 1.8 Energy as an engine of rural development and gender equity ...................................................... 30 2 Renewable Energy Sector Context ....................................................................................................... 35 2.1 Renewables in Haiti’s Energy Sector ........................................................................................................ 36 2.2 Barriers to Developing Renewables and Measures to Mitigate Them ....................................... 42 3 Renewable Energy National Planning and Methodologies for Assessing Economic Viability ...................................................................................................................................................................... 45 3.1 Grid‐connected Renewables ........................................................................................................................ 47 3.2 Off‐grid Renewables ........................................................................................................................................ 50 4 Prioritizing Strategic Investment Areas ............................................................................................ 54 4.1 Ranking Investments ...................................................................................................................................... 55 5 Responsiveness to SREP Criteria .......................................................................................................... 61 6 SREP for Haiti: Program Description .................................................................................................. 64 6.1 Program Objectives and Expected Outcomes ....................................................................................... 65 6.2 Program Rationale and Design ................................................................................................................... 65 6.3 Proposed SREP Investment Plan Components ..................................................................................... 6 6 6.4 Program Co‐benefits ....................................................................................................................................... 72 7 Financing Plan ............................................................................................................................................... 73 8 Institutional Framework for Implementation ................................................................................ 75 9 Environmental and Social Aspects ....................................................................................................... 78 10 Monitoring and Evaluation, and Knowledge Management ....................................................... 81 10.1 Strengthening Monitoring and Evaluation............................................................................................. 82 10.2 Strengthening knowledge management and lessons sharing ........................................................ 82 10.3 Results Framework .......................................................................................................................................... 83 10.4 SE4ALL Multi‐tier Framework for Measuring Energy Access ....................................................... 84 11 Risk Assessment ........................................................................................................................................... 86 Annex I. Component Briefs ................................................................................................................................ 91 Component Brief 1. Renewable energy for the Port‐au‐Prince metropolitan area .............................. 92 Component Brief 2. Renewable energy for Isolated Grids—Port‐de‐Paix Demonstration Project 96 Component Brief 3. Off‐Grid Electricity for Productive, Social and Household Uses ........................ 100 Component Brief 4. Small hydropower rehabilitation .................................................................................. 108 Component Brief 5. Building Enabling Framework, Capacities and Skills for Renewable Energy Scale‐up ............................................................................................................................................................................. 111 Annex II. Assessment of Country’s Absorptive Capacity .................................................................... 115 Macroeconomic and fiscal situation ...................................................................................................................... 116 Government’s absorption capacity in the Electricity sector ....................................................................... 116 2 Annex III. Stakeholders Consultations ....................................................................................................... 119 Annex IV. Renewable Energy Business Models in Haiti ..................................................................... 129 Haiti Business Case Example 1—Emerging partnership between the MFI Fonkoze and the lantern distributor MicamaSoley ............................................................................................................................................ 130 Haiti Business Case Example 2—Re‐Volt service approach with individual PV systems ............... 130 Haiti Business Case Example 3—Off‐grid electrification for improved public services .................. 131 Haiti Business Case Example 4—EarthSpark microgrid ............................................................................... 131 Haiti Business Case Example 5—A rural Cooperative ................................................................................... 132 Annex V. Project information document for the Proposed CTF‐supported Modern Energy