Green Mini-Grid Market Development Programme Phase 2 Kick-Off Meeting

By: Jeff Michael Felten, AfDB

In Q2 of 2017, the AfDB Board approved a $3 million SEFA grant for a second phase of the Green Mini-Grid Market Development Programme (GMG MDP).  After completing the procurement process for the different business lines, the hired consultancies were invited for a GMG MDP Phase 2 Kick-Off Meeting in November.  Firms or partners attending the meeting included:

  • Market Intelligence Business Line Partners: Carbon Trust and its consortium members ECREEE (ECOWAS Center for Renewable Energy and Energy Efficiency) and SNV
  • Business Development Services Business Line/Policy and Regulations Support Business Line: Energy 4 Impact and its consortium partner INENSUS
  • Access to Finance Business Line: Economic Consulting Associates (ECA)
  • Green Mini-Grid Market Data: Club-ER
  • Green Mini-Grid Training: Association of Power Utilities of Africa (APUA)
  • Mali Country Programme: Tractabel
  • Mozambique Country Programme: Economic Consulting Associates (ECA)

The content of the two-day meeting included presentations from each of the business line lead firms detailing their different work streams, methodologies and work plans.  In some cases, work plans needed realignment to ensure synergies between the different business lines and consistency relative to focus countries.  Day two of the meeting was reserved for bilateral meetings between the firms and the Bank, as well as between the partner firms to promote collaboration.

The important takeaways from the Kick-Off Meeting discussions were:

  • Increasing visibility of the GMG MDP within the GMG and development communities;
  • Facilitate more and stronger partnerships;
  • Improve the GMG Developers’ Help Desk (which will be redesigned and re-launched along with a new GMG Policy Help Desk); and
  • Promoting visibility through quarterly reports.

An area of immense interest is the development of a results based financing (RBF) fund for GMGs, which is a work stream under the Access to Finance business line and part of ECA’s Terms of Reference.  Due to the uncertainties surrounding the development of an RBF (as well as questions about how best to deliver finance training), ECA was asked to draft an Inception Report and in the interim the Programme will try to build on some already existing instrument instead of building a new facility from scratch.

To begin a focused delivery of GMG policy technical assistance, it was agreed to begin an inventory of which donors were supporting policy TA and where, including the accounting for the different consultancies involved. The development of this spreadsheet was initiated immediately, and a working version was a product of the Programme’s Q4.