New Call for Proposals planned to be soon launched in the EEP S&EA Programme
The EEP S&EA Programme is in the process of soon launching two new Calls for Proposals (CfP12 and 13), the first one focusing on early stage support for projects and the second one for market ready projects.
The Call for Proposals with the updated early stage and market ready outlines aims to form the basis for successful future projects and the success of the EEP.
Please subscribe for the Programme newsletter to receive further information on the launch, the targets of the EEP characteristics of a solid application, guidelines on the application procedures, restrictions and eligibility criteria for funding, and project categories.
Each application need to adhere to the following rules in having the opportunity to obtain EEP funding:
- A clear development rationale and an economic rationale;
- Sustainable development outcomes,
- Minimization of market distortions;
- Credible contribution to achieving systemic market impact; and
- Ensure milestones align incentives with commercial partners.
In both the early stage and market ready windows specific attention needs to be given to gender issues, poverty reduction, innovation and difficult markets. Applicants are required to include clarity on who the customers/beneficiaries are.
The EEP S&EA Programme cannot include topics relating to tobacco, alcohol, and topics on corporate manners not conforming to good responsibility practices.
The illustration below outlines the proposed structure of these CfPs.
Design and implementation of the two new funding windows of EEP
The new Call for Proposals aim to support the following types of projects:
Feasibility Study (CfP12 – Early Stage Window)
Analysis and evaluation of a proposed project to determine technological, social and environmental viability, as well as feasibility within the estimated cost and economic viability. The Feasibility Study may be a refinement of a pre-feasibility study and should present enough information for investors to finance the next stage of the project. Investors may typically be part of the feasibility work to ensure smooth transition from the feasibility to a pilot or demonstration financing. The expected output from a feasibility project is a “bankable feasibility study” acceptable for financiers with all the necessary agreements in place e.g. permits and licenses, environmental impact assessment (EIA) approvals, access to land and other business specific requirements according to the laws of the country where the project is to be implemented. Optimal is further to reach feedstock supply agreements and power purchase agreements.
Pilot Project (CfP12 – Early Stage Window)
Testing of an RE/EE product, service, and business or delivery model, including social and local appropriateness on a small scale, for the first time, or in a new market, , in order to ensure the conditions and operational details regarding e.g. feasibility, time, cost, size and risks before large scale roll out or commercialization. Pilot projects should form part of an overall market development strategy. For a pilot project to be approved for an EEP grant, the project proposal should clearly indicate further steps envisaged towards larger roll out or commercialization after the piloting phase.
As opposed to a demonstration project, a pilot project does not strive to prove and gather evidence that a product/service or a technology works in the selected circumstances but is intended to test and develop new products, services, and/or business or delivery models so that the project can optimize the procedures and gather lessons learned for a roll out or a commercialization in the following phases of the project.
Demonstration project (CfP13 – Market Ready Window)
A project has in the pilot phase gained experience that the tested product/service or a technology can be successfully implemented in the selected location for implementation. In the demonstration phase the project strives to establish evidence that a project, a product/service and business or delivery model works in a specific context, such as the geographical or socio-economic area, and could be applied elsewhere in similar circumstances. This may show the performance of a product/service or a technology in actual conditions, or it may encourage the trial use or purchase of the product/services or technology in the target market. For a demonstration project to be approved for EEP grant, the project proposal should clearly indicate the specific context and describe further steps towards roll out or commercialization. The demonstration project proposal should also provide basis for a high probability that the product/service or a technology can be successfully implemented in the selected location for implementation, such as experiences gained from other markets, or in test environments or through a pilot project.
Scale up to Commercial operation (CfP13 – Market Ready Window)
A project has proven evidence that a concept, a product/service or a technology and business or delivery model works, and there is a high probability of reaching commercial viability with the applied “bridging finance” from EEP. Evidence might have been gathered through a demonstration project but also in some cases from a pilot project which has proven to be a successful concept.
For the CFP13, the focus is on promising local private sector RE/EE project opportunities that are close to commercial maturity but need a limited amount of ‘bridging’ finance to enable sustainable business growth and or to obtain commercial operation. Applications should provide information on the maturity of the business or project and why EEP S&EA funding would be required e.g. by elaborating on the level of commercial maturity of the project or business, and the estimated commercial operation. The application must clearly demonstrate what the bridging finance is required for, why this funding has not been obtained or cannot be obtained from other sources, to what extent other sources of finance have been explored or used for the project, how and when would the business or project graduate to a level where it could obtain commercial funding etc.
Replication of commercially proven concepts to new markets (CfP13 – Market Ready Window)
Technology advancements have resulted in a number of RE/EE products and solutions suitable for medium to large-scale commercial and industrial applications. Whereas these RE/EE solutions are tried and proven in developed countries or in some of the regional markets, there might still be relatively little practical experience with them in Southern and East African markets. Replication projects can help provide local knowledge and experience, prove the cost effectiveness of chosen technologies in generating and/or saving energy (compared to existing alternatives), help identifying and addressing market barriers (e.g. policy, regulatory, financing, capacity) and subsequently generate market demand which would in turn result in the creation of new business and employment opportunities.
Applicants need to demonstrate an understanding of the target market e.g. what is the current demand and future growth potential, and how the target market differs from those markets where the solutions have already proven successful. A replication can be conducted either nationally to a different geographical area within the existing country or by going international to another EEP partner country.
Rejuvenation of existing renewable energy and energy efficiency generation (CfP13 – Market Ready Window)
Rejuvenation projects restore existing non- or partially operational renewable energy and energy efficiency generation systems back to operational status and/or more effective status by introducing modern solutions to them. Typically, the target market and customers are already existing, but for some reason the system has lost its functionality or it is not efficient and viable any more. Rejuvenation projects are particularly worth implementing if cost effectiveness can be shown. They create new employment opportunities, enhance access to modern energy services and that way provide opportunities for businesses. Funding for rejuvenation projects can be given to the generation component of an energy system but not to the energy distribution component of the system.
For a rejuvenation project to be approved for EEP grant, the project proposal should clearly explain the background, viability and expected outcomes for the project. Sustainable operation after the project needs to be demonstrated, as well as a (management) plan to avoid falling back into the non-operational status.
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