Brief Description

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.

To achieve the above objective, the project will aim for the following:
To remove barriers to the wide-scale utilization of renewable energy technologies (PV, wind and mini hydro) and 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/Achievements:

1. Delivery of renewable energy-based technology packages: To implement Rural community watching solar powered TV: demonstrating practical use of solar energy different delivery models for renewable energy-based rural electrification targeting different end-user groups and making use of different technology packages the project has, since inception: pre-qualified 3 local solar energy installers to work with the project in providing the three target districts with the opportunity to purchase 65W solar PV systems at a government subsidized rate of 84%; identified villages and customers to take part in household installations; encouraged the three installers to set up offices in rural districts; assisted solar installers with taking part in a credit guarantee scheme which helps them obtain loans; and has begun to identify 15 local entrepreneurs in the three target districts that can benefit from a grant to allow them to use renewable energy technologies to benefit their business as well as the community they serve.
    

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 the project has come a long way. An Awareness Raising Programme was developed; including a series of field visits, awareness campaigns and product demonstrations were held in the first year in the three target districts. Using information leaflets, promotional materials, radio programmes, workshops, exhibitions and meetings, the project sensitized the general public, rural communities and decision makers on the potential role of renewable energies 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 in the year 2008 the project organized a technical training to equip community representatives with basic skills in PV systems operation, trouble shooting, repair and maintenance. Along with this course, business training for solar dealers to strengthen their entrepreneurial capacity was offered. The project also found it vital to rejuvenate Lesotho Solar Energy Society (LESES). Seventy Five percent of the solar dealers in Lesotho are now members of LESES. With project support, Lesotho Solar Energy Society held its Annual General Meeting in October 2007 and had a budget and work-plan formulated for 2008. They have now hired a secretary and have an office space to work out of.
    

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 the project has, in 2008, ensured that renewable energy technologies were featured in the National Rural Electrification Master Plan, and that local PV installers are aware and trained on the use of the Lesotho PV Code of Practice.
    

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 the project has worked on two schemes: A Credit Guarantee Scheme, which provides a guarantee for 75% of credit provided by qualified selected financiers/supply credit companies to consumers and qualified suppliers; and a Performance Grant Scheme, which involves a subsidized PV system, where payment of the subsidy is allocated only after an Independent Auditing Firm has audited installed systems and the installation has been certified and approved as being in line with international standards and quality workmanship. Both of these schemes are in the foetal stages of set-up, where bank accounts have been opened, MOUs signed, and the first three installers are in the process of finalizing loans from local banking institutions.
    

6. Learning and replication: To disseminate experiences and lessons learned in order to promote replication throughout the country of rural electrification based on renewable energy technologies has not been started yet, however, the project is on a daily bases compiling lessons learned.
   
    

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

Lineo.mdee@undp.org