Minigrids

GET FiT Minigrids is one of the initiatives under the The Green People’s Energy for Africa (GPE) programme. GPE is financed by the Federal Ministry for Economic Cooperation and Development (BMZ) and aims to facilitate, expand and secure the supply of sustainable energy in rural Africa, involving both citizens and companies. To this end, GPE is working in nine countries across sub-Saharan Africa, including Mozambique.

GET FiT Minigrids promotes the role of the private sector in the construction and operation of mini-grids based on renewable energy (RE) sources. The objective is to develop 3 MW of installed capacity in the form of mini-grids, with each mini-grid having a capacity range of around 200-500 kW. Sites will be selected in close cooperation with the Fundo Nacional de Energia (FUNAE), the Mozambican public institution that is responsible for off-grid sector development, and the tender will be implemented by the Autoridade Reguladora de Energia (ARENE), the energy sector regulatory agency.

Impact

• Provide power to up to 7,000 Mozambican households.
• Reduce at least 3,700 tonnes of CO2 emissions per year
• Leveraging over EUR 25 Million in private sector funding.

Call for Prequalification

The Ministerio de Recursos Minerais e Energia (“MIREME”, “Project Executing Agency (“PEA”)” or Competent Entity”) has received funds from the Government of Germany (“GoG”) through KfW Development Bank (“KfW”) toward the cost of the “Green People’s Energy for_ Africa: Mozambique Program (the“Program”)(BMZ 2018 68660) in form of a financial contribution (“Grant”). These funds are intended for support of a tender program for Mini-grids with solar photovoltaic system (“PV”) and battery energy storage systems (“BESS”) to be implemented by Autoridade Reguladora de Energia (“ARENE”) according to their mandate under Article 7(1)(b) of the Law no. 11/2017 of 8 of September (“ARENE Act”).

ARENE now intends to select between two (2) to (4) four experienced and qualified Mini-Grid Developers to finance, design, construct, own, operate, maintain and transfer four (4) Lots of Mini-grids with a total installed capacity of up to 3 MW in the Nampula province through an International Competitive Bidding (“ICB”) process with Prequalification to be implemented under the laws of the Republic of Mozambique in consideration of KfW´s “Guidelines for the Procurement of Consulting Services, Works, Plant, Goods and Non-Consulting Services in Financial Cooperation with Partners” (2021), as updated from time to time. Each Lot will include various Mini-grids each with a planned installed capacity of between 25 kWp and 100 kWp and BESS (each a ” Sub-Project”), Under this Prequalification Process, a maximum of eight (8) Applicants may be shortlisted.

Please see ARENEs Website or see GTAI for additional information on the Tender Lots and the Programme, and obtain the Prequalification Document.

Implementation Strategy

The Programme design will be closely aligned to the GET FiT Mozambique on-grid program and its subsequent toolbox and implementation structure. It shall be supported by the same Implementation Consultant to leverage synergies and guarantee an efficient use of means. The intended scope of work will be very similar to GET FiT on-grid due to the close alignment of the two components and the use of the same implementation structure. Accordingly, the Implementation Consultant shall adapt or elaborate the necessary standard procedures and documents (esp. a concession agreement), secure the land rights for the program sites and shall design and implement the tender processes for the Viability Gap Fundig Mechanism for the off-grid component. Furthermore, the Implementation Consultant shall be responsible for environmental and social risk management, technical and legal issues and shall elaborate or adapt all necessary additional or subsequent studies and management plans including detailed site-specific E&S and target group analyses.

Projects will be selected through a two-stage reverse public auction process. In stage one, applicants will be required to demonstrate a series of pre-qualification criteria such as proven track record of developing and completing RE projects. In the second stage, IPPs will submit business plans and a financial offer. These will be reviewed for viability as well as for meeting World Bank’s International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability. The evaluation and selection criteria for the second phase consist of, firstly, a viable business plan with the respect to the provision of energy services, and secondly, the tariff structure presented. The candidate with the lowest tariff will win the competition

GET FiT Minigrids toolbox

The programme aims to increase the electrification rate in rural areas in Mozambique using solar PV mini-grids with storage mini-grids developed by IPPs. The IPPs will ensure the financing, operation and maintenance of the power generation facilities, as well as the sale of electricity directly to the end-consumer. The intervention design will be closely aligned to the GET FiT Mozambique on-grid Programme. The pillars of the off-grid component shall consist of:

Stakeholders