GEF-UNDP-ECN DE-RISKING RE PROJECT
PROJECT ID: 00094142:
TITLE DE-RISKING RENEWABLE ENERGY NAMA FOR THE NIGERIAN POWER SECTOR
PROVISION OF CATALYTIC EQUITY SUPPORT TO MINI-GRIDS DEVELOPERS FOR THE CONSTRUCTION OF INTERCONNECTED MINI-GRIDS IN NIGERIA
BACKGROUND
The United Nations Development Programme (UNDP), Energy Commission of Nigeria (ECN) and the Global Environment Facility (GEF) in collaboration with relevant agencies of the Nigerian government is currently implementing a project titled: “De-Risking Renewable Energy NAMA/NDCs for the Nigerian Power Sector”. Nigerian governments have realized that mini-grid can provide constant and affordable electricity in remote places where the population density is too low for distribution companies to economically operate and manage the community’s connection to the national grid. A mini-grid is refers to a stand-alone power system or an integrated local generation and distribution system with installed capacity below 1MW, capable of serving numerous end-users independent of the national grid. Therefore, this Call for Expression of Interest is specifically for Mini-Grid Developers desiring to operate interconnected mini-grids and have according to the existing Regulations, entered into a tripartite contract with the community and Distribution Licensee to construct, operate and/or maintain an interconnected Mini-Grid in an Underserved Area. For the Mini-Grid Developer to qualify to participate in the GEF-UNDP’s interconnected Mini-Grids project, the tripartite contract for any selected site must have been approved by the Nigerian Electricity Regulatory Commission (NERC). Solar PV interconnected mini-grid installations in Nigeria typically need a combination of debt and equity support. To this end, the Mini-Grid Developer is expected to have sourced for his debt and equity, while the viability gap of the GEF-UNDP’s interconnected Mini-Grids project would be bridged through capital grants of 10-20% of the full cost of the project to enable the mini-grid developers increase its capital base, lower their debt and tariffs while increasing customer base.
OBJECTIVES
The overall objective of this project is to provide catalytic financial support to Mini-Grid Developers who must secured his equity and debt financing as well as entered into a tripartite contract with the community and Distribution Licensee to construct, operate and/or maintain an interconnected Mini-Grid in an Underserved Area.
SCOPE OF WORK
3.0 The scope of work includes the design, construction, commissioning, operation and maintenance of interconnected solar mini-grids upto 1 MW collaboration with any of the Electricity Distribution companies across Nigeria. When completed, the aforementioned projects are to be operated on a commercial public-private partnerships arrangement based on a sustainable business model in rural or peri-urban under-served areas, where such project(s) would have been economically unviable without this intervention Support shall be provided only to firms whose proposals meet the following requirements. Applicants are free to choose and evaluated potential sites with technical studies and justifications. The applicant must prove that all sites shall be developed with an exclusivity agreement drafted according to the template provided by NERC in the Mini-grid Regulations, while technical designs must meet the minimum technical specifications.
ELIGIBILITY CRITERIA
4.0 Proposals will be assessed based on the eligibility criteria for entities incorporated as a profit company in Nigeria, as attached in the addendum.
5.0 DELIVERABLES
Interconnected Solar-PV mini-grids constructed, connected to distribution network of a DISCO, operated, and/or maintained in an Underserved Area
6.0 TIMEFRAME The work is expected to be for 7 calendar months
SUBMISSION OF QUOTATION
7.0 Interested developers are invited to contact the project office for the Criteria for Technical Evaluation, which accounts for 70% of selection and submit an Expression of Interest (Eol) with Technical and Financial Proposals for the “Provision of Catalytic Equity Support Mini-Grids Developers for the Construction of Interconnected Mini-Grids in Nigeria”. The Eol together with Technical and Financial Proposals should be submitted electronically to the email address below on or before Friday, 5 June 2020.
Please kindly forward soft copies of your Quotations to:
GEF-UNDP-ECN DE-RISKING RE PROJECT OFFICE,
Energy Commission of Nigeria (ECN).
Plot 7010, Central Business District, Abuja.
Email address: undpgefdrei@gmail.com
