Mini-grid Tenders: The GIZ Experience and Developments in Togo


This presentation provides an overview (scope and timeline) of on-going mini-grid tenders being implemented by GIZ programs in Africa (+6 countries including Uganda, Kenya, Nigeria etc.) The GIZ Uganda mini-grid programme approach will be discussed, including policy support, tender + regulation, technical + subsidy financing support to developers, and demand stimulation through productive use. We will also look at current experiences and lessons learned from designing two mini-grid tenders in Uganda (up to 40 mini-grids) implemented by REA with support from GIZ.

Key Take-Aways:
  • Government involvement is key for rolling out mini-grid projects (projects ownership, mini-grids planning/prioritisation/political will, access to a high number of mini-grid sites, sustainable long-term operation)
  • Projects require time (delays are common in countries where government actors are not familiar with process/approach & technology) and the regulation in countries is still untested (grid interconnection, termination compensations, tariffs, expansion, operation). This makes it challenging to match donor funding usually characterised by shorter and stricter timelines e.g. 3 years.
  • Technical assistance is still needed. Tender instruments (process, contracts, tender documents, feasibility studies) and regulatory structures need time and government actors' coordination to develop. Such processes are safer started as early as possible in projects.
  • Interphase with companies during the tender process improves quality of bids and success of projects (interests of government and private sector can be matched)
  • While private sector shows high interest in mini-grids (80 companies in Uganda's tender workshop), the quality of bids was relatively lower than expected - possibly due to too much work tenders required from companies, yet only 1 or 2 companies can win the project.
Speakers

Florian Paffenholz, GIZ
Florian Paffenholz
Technical Advisor
GIZ Togo

Florian has recently joined GIZ Togo as a Technical Advisor. Based at the Togolese Agency for Renewable Energies and Rural Electrification (AT2ER), he is principally working on issues to improve the business environment for decentralized energy solutions, specifically solar home systems and mini-grids. Before joining GIZ, Florian worked with Physikalisch-Technische-Bundesanstalt (PTB), where he was working in standardization, testing, and other quality aspects for renewable energies and for KfW Entwicklungsbank, where he was involved in the financing of the NOOR I, II and III projects in Ouarzazate, Morocco. Florian has a German Diplom in Geography, Politics and Economics.

Stefan Salow, GIZ
Stefan Salow
Junior Technical Advisor
GIZ Togo

Stefan joined the GIZ Togo Energy Programme as a Junior Technical Advisor in June 2018, where he works on improving the framework conditions for decentralized energy access. Prior to that, Stefan has worked for the GIZ Energy Department in Germany and the GIZ Energy Support Programme in Vietnam, where he mostly worked in the fields of energy policy and energy access. Stefan has an MSc. in Economics, having studied in Scotland and Germany.