CFPs: Zambia Energy Demand Stimulation Incentive Programme

Tracks 

• Track 1: Zambia Energy Demand Stimulation Incentive (ZEDSI): This Results and Performance Based Financing incentive is designed to support the commercial viability and sustainability of a first set of 100+ priority mini-grid projects. The Universal Energy Facility (UEF), managed by SEforALL is a multi-donor RBF initiative which provides grant funding to mini-grid operators to stimulate sustained energy consumption growth, through productive uses of energy in agri-value chains, businesses, public institutions and households, leading to rural development, improved revenues, operating margins ensuring the commercial viability of mini-grid projects.
• Track 2: Integrated Electricity Framework: The UEF will provide targeted support to the government of Zambia (GRZ) to develop investment strategies to scale-up financing inflows into the DRE sector to get from 100+ communities to 1,000 communities. Developers will be empowered to exploit synergies between various DRE technologies, ensuring no-one is left behind. The goal is to develop sustainable models for DRE investments that can be replicated at scale, building on the learnings drawn from the ZEDSI programme.
• Under Track 1, the Universal Energy Facility (UEF) will support mini-grid operators to undertake demand stimulation activities – by providing grant payments to eligible mini-grid projects upon verification of sustained electricity consumption and revenue growth via productive uses of energy. Demand stimulation activities are those operational activities that directly result in increased electricity consumption and revenue growth for the mini-grid project which provides adequate, reliable electricity to agri-value chains, businesses, public institutions and households engaged the production of good or services.

Funding Information

• Eligible mini-grid operators will receive a share of US$1.4 million upon commissioning of new minigrid projects and verification of sustained electricity utilization and revenue growth resulting from their demand stimulation activities.

Eligibility Criteria

• Interested Applicants must fulfil the following eligibility requirements:
  • Must be a for-profit mini-grid company legally registered with established business operations in Zambia with relevant business/trading license
  • Must have at least one (1) operational mini-grid project in any sub-Saharan Africa country with operational capability to develop and implement new mini-grid projects as well as undertake the sales and operation of productive use appliances/equipment in Zambia
  • Must provide evidence of ability to construct new mini-grid projects under the ZEDSI Programme within 18 months
  • Must provide Smart Meter integration (both Bulk Meter at the Mini-grid Plant and Customer Metering) with details of API enabled Customer Relationship Management or Payment system to be integrated with UEF Platform
  • Must provide evidence of ability to undertake rural economic development activities and business models to drive electricity demand and revenue growth
  • Must provide evidence of compliance with financial reporting requirements, including audited financial reports and company tax clearance no older than recently past 12 months
  • Must comply with product quality and minimum service standard; environmental and social management systems; and gender and youth mainstreaming requirements
• An Applicant may be:
  • A single legal entity; for-profit Mini-grid company, licensed to conduct business in Zambia and in good standing with all relevant authorities;
  • A single legal entity meeting the criteria representing an unincorporated/unregistered Consortium or joint venture which will be authorised in writing by members of the Consortium or joint venture to act as Lead Applicant; or
  • A Consortium that is incorporated/registered as a single legal entity in Zambia, having the capacity to enter into a contract under the relevant laws of the country and is in good standing with all relevant authorities.
  • In the case of a Consortium: the Lead Applicant must be a mini-grid company. The Lead Applicant can only submit one Application for a portfolio of mini-grid projects. However, a PUE distributor/supplier can be included as a collaborator in more than one Lead Applicant’s application whether in collaboration with a sole Applicant or as part of a Consortium. In essence, a PUE distributor/supplier may be part of multiple applications in conjunction with more than one mini-grid company.

For more information, visit UEF.