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Renewable Energy-based Rural Electrification in Lesotho

Brief Description

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3.3 Access to sustainable energy services
Project document
Progress Report 2007

The population of Lesotho is approximately 2.2 million persons, of which about 85% live in rural areas. The rural areas are characterized by rough terrains with villages sparsely scattered on mountain sides and accessibility to some is only by foot or horseback. With an average of 6 persons per households, this leads to approximately 275,000 households residing in rural areas. At present only about 11% of households in Lesotho have access to electricity, with most of these being located in urban areas. It is estimated that only 1% (about 2400HH) of rural households has access to reliable electricity. The Government of Lesotho (GoL) objective is to increase the electrification targets from this current 11% to at least 35% by 2020, countrywide.

Objectives:
The project aims at reducing Lesotho’s energy-related CO2 emissions by introducing renewable energy technologies as a substitute for fossil fuel (paraffin and diesel) in rural areas remote from the national electricity grid and improving people’s livelihoods by improving their access to and affordability of modern energy services. In addition, the project will decrease the growing number of rural poor, adults and children alike, who contract respiratory and eye problems due to prolonged exposure to paraffin smoke and soot (poor indoor air quality). The activities proposed in the project are designed to remove barriers to the wide-scale utilization of renewable energy technologies (PV, wind and mini hydro) to meet the basic electricity needs of households, small businesses and of community users like health clinics and schools, initially in the three pilot districts, but eventually in the whole country.

Outputs:
1. Delivery of renewable energy-based technology packages: To implement different delivery models for renewable energy-based rural electrification targeting different end-user groups and making use of different technology packages

2. Awareness raising: To increase awareness among the general public, decision-makers and rural customers on the potential role of renewable energy in meeting basic energy needs in rural areas;

3. Private and public sector strengthening and training: To strengthen and support the public and private sector working in the renewable energy sector to provide better quality of service to the rural areas;

4. Policy support and policy framework: To assist the development of policy and institutional arrangements needed for the widespread adoption of renewable energy sources for off-grid electricity services;

5. Financial mechanisms: To assist with the implementation of a performance grant and a credit guarantee scheme for the larger scale dissemination of renewable energy based technologies to rural customers;

6. Learning and replication: To disseminate experience and lessons learned in order to promote replication throughout the country of rural electrification based on renewable energy technologies.
 

Project Period:

2006 – 2010

Location:

Lesotho Districts: Mokhotlong, Thaba Tseka, and Qacha’s Nek

Status Ongoing

UNDP Programme Officer

Ms. Lineo K. Mdee

UNDAF Outcome:

Support to energy activities to reduce poverty and achieve sustainable development objectives at the local and national using renewable energy sources.

Management Arrangement:

NEX

Implementing Partner:

Ministry of Natural Resources, Department of Energy

Other Partners:

World Bank

Budget and Sources:

UNDP 2 500 000 USD; GEF

Other (parallel funding):

Government (Renewable)   US$183 000

Rural Electrification Fund   US$2 500 000

Access Pilot Project PV     US$816 500

World Bank                     US$546 000

Private Sector                 US$10 000

Rural Water Supply           US$73 000

Government in kind of        US$100 000

Delivery 2006 N/A


Achievements:
This project is in the beginning stages of its five year lifespan. The Project Inception Workshop was held in May 2007 and since then the project staff have been working hard to achieve the 2007 work plan that was to begin in January 2007.

To install solar systems in institutional systems in the chosen districts a Performance-Based Grant is being implemented with the support of the World Bank. The preparatory work for the installation of PV systems in public institutions is well under way, with 32 public institutions identified as recipients of solar systems. The project has recently awarded the contract to the supplier who will install the solar systems and the installation work will begin shortly.

To install solar systems in homes and small businesses a Credit Guarantee Scheme (CGS) is being implemented with the support of UNDP. The CGS covers up to 75% of the credit provided by selected financiers to consumers or suppliers living or operating in the projects districts. During October and November 2007 advertisements were placed in the local newspapers calling for suppliers, financial institutions, and trainers who wish to be part of the CGS, and in November a panel will be evaluating and awarding contracts to the successful applicants.

Another important aspect of the project is to build awareness among Basotho people- urban, rural, and key decision makers, to educate them on renewable energy options. Thus, an awareness programme has been created for the general public. During the second week of November a full week of pietsos (public gatherings) took place to inform the target districts about renewable energy and the LREBRE project. A brochure, in English and Sesotho, was developed that summarizes the LREBRE project and it was distributed within the districts and to decision makers of Lesotho. As well promotional items were branded and given out during the public gatherings. Additionally, there has been a weekly radio programme on Radio Lesotho, and adverts placed in local newspapers in order to inform and educate people about the project and renewable energy.

Finally, the association of PV suppliers in Lesotho is operational (Lesotho Solar Energy Society, LESES) and the members have attended two workshops in the month of November and they are keen to revive this association.
 

Contact:
Ms. Lineo K. Mdee
Head of Energy and Environment Unit

Lineo.mdee@undp.org

 
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