southern africa energy program year 4 – fy21 q1 quarterly

DISCLAIMER

This report is made possible by the support of the American People through the United States Agency for International Development (USAID).

The contents of this report are the sole responsibility of Deloitte Consulting LLP and do not necessarily reflect the views of USAID or the

United States Government. This report was prepared under Contract Number AID-674-C-17-00002.

SOUTHERN AFRICA ENERGY PROGRAM

YEAR 4 – FY21 Q1 QUARTERLY

PROGRESS REPORT

OCTOBER 1, 2020 – DECEMBER 31, 2020

DRAFT

Version 1: January 29, 2021

Version 2: February 22, 2021

Version 3: March 3, 2021

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | i

Blank page

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | ii

ACRONYMS

Acronym Definition

ADER Agence pour le Développement de l’Electrification Rurale

AEF Africa Energy Forum

AFD Agence Française de Développement

AfDB African Development Bank

ALSF African Legal Support Facility

ARENE The Energy Regulatory Authority

BCMP Business Continuity Management Plan

BCMS Business Continuity Management Systems

BCP Business Contingency Plan

BERA Botswana Energy Regulatory Authority

BGFZ Beyond the Grid Fund for Zambia

BoD Board of Directors

BPC Botswana Power Corporation

BSC Balanced Scorecard

BSP Battery Service Providers

BTG Beyond the Grid

BW5 Bid Window 5 (of REIPPP Programme)

CDH Cliffe Dekker Hofmeyr Incorporated

CENORED Central Northern Regional Electricity Distributor (Namibia)

CEC Copperbelt Energy Corporation

CEO Chief Executive Officer

COR Contracting Officer’s Representative

CoSS Cost of Service Study

CP Cooperating Partner

CEEEZ Centre for Energy, Environment and Engineering of Zambia

CSP Concentrated Solar Power

CTT Central Termica de Temane

CoCT City of Cape Town

CoW City of Windhoek

DBSA Development Bank of South Africa

DFID UK Department for International Development

DOC Development Outreach and Communications

DSM Demand Side Management

EAEP East Africa Energy Program

EAPP Eastern Africa Power Pool

E&S Environmental and Socioeconomic

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | iii

ECB Electricity Control Board (Namibia)

EDM Electricidade de Moçambique

EE Energy Efficiency

EEC Eswatini Electricity Company

EGENCO Electricity Generation Company

EMMP Environmental Mitigation and Monitoring Plan

EMU Electrification Management Unit

ENDE Empresa Nacional de Distribuição de Electricidade

ENH National Enterprise of Hydrocarbons

EOI Expression of Interest

EPC Engineering, Procurement, and Construction

ERB Energy Regulatory Board (Zambia)

ERI Electricity Regulatory Index

ESWACAA Eswatini Civil Aviation Authority

ESC SAPP Environmental Subcommittee

ESCOM Electricity Supply Corporation of Malawi

ESERA Eswatini Energy Regulatory Authority

ESIA Environmental and Social Impact Assessment

ESEEP Energy Sector Efficiency and Expansion Program

ESMP Environmental and Social Management Plan

ESMS Environmental and Social Management System

ESREM Enhancing Sustainability of Regional Energy Markets

ESP Energy System Planning

EWSC Eswatini Water Services Corporation

ETG Energy Thematic Group

EWT Endangered Wildlife Trust

ExCo Executive Committee

FC Financial Close

FY Financial Year

FMM Financial Mobilization Memo

FY Fiscal Year

GCA Grid Connection Agreement

GET FiT Global Energy Transfer Feed-in Tariffs

GOGLA Global Off-Grid Lighting Association

GoM Government of Malawi

HICD Human and Institutional Capacity Development

HRMSC Human Resources Management Sub-committee

HRWG Human Resources Working Group

IA Implementation Agreement

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | iv

IAEREP Increased Access to Electricity and Renewable Energy Production

IDIQ Indefinite delivery/indefinite quantity (used in U.S. Federal government contracting)

IFC International Finance Corporation

IFI International Financial Institution

IPP Independent Power Producer

IPP Office South Africa Department of Energy (DoE) Independent Power Producer Procurement

(IPP) Programme Office

IRP Integrated Resource Plan

IRSEA Instituto Regulador dos Serviços de Electricidade e de Água

IsDB Islamic Development Bank

IWaSP International Water Stewardship Programme

JDA Joint Development Agreement

KfW Kreditanstalt für Wiederaufbau (German Development Bank)

KPI Key Performance Indicator

kV Kilovolt

LCOE Levelized Cost of Energy

LEC Lesotho Electricity Corporation

LEDs Low Emissions Developments

LEWA Lesotho Electricity and Water Authority

LOC Letter of Collaboration

LOI Letter of Intent

M&E Monitoring and Evaluation

MCA Millennium Challenge Account

MCC Millennium Challenge Corporation

MDM Metering Development Management

MERA Malawi Energy Regulatory Authority

MIREME Minister of Mineral Resources and Energy (Mozambique)

MITADER Ministry of Land, Environment and Rural Development (Mozambique)

MITC Malawi Investment Trade Centre

MMGE Ministry of Mineral Resources, Green Technology and Energy (Botswana)

MME Ministry of Mines and Energy (Namibia)

MNRE The Ministry of Natural Resources and Energy

MONREM Ministry of Natural Resources, Energy and Mining (Malawi)

MW Megawatts

NARUC National Association of Regulatory Utility Commissioners

NDA Non-Disclosure Agreement

NEESAP National Energy Efficiency Strategic Action Plan

NEI Namibia Energy Institute

NERSA National Energy Regulator of South Africa

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | v

NDCC National Development Coordinating Committee

NORED Northern Regional Electricity Distributor

NRECA National Rural Electric Cooperative Association

NWEC Northwestern Energy Corporation

OGTF Off-Grid Task Force

OFID OPEC Fund for International Development

OPC Office of the President & Cabinet

OPIC Overseas Private Investment Corporation

OSC SAPP Operating Subcommittee

PA

PATRP

Power Africa

Power Africa Transactions and Reforms Program

PATT Power Africa Transaction Tracker

PAU Project Advisory Unit

PCCBIS Portfolio Committee Capacity Building and Information Sharing Meeting

PIM Project Investment Memo

PIU Project Implementation Unit

PMEP Performance Management and Evaluation Plan

PMO Project Management Office

PMU Project Management Unit

PPA Power Purchase Agreement

PPPC Public Private Partnership Commission

PPZ Partial Protection Zone

PS Permanent Secretary

PV Photovoltaic

Q1 Quarter 1

Q2 Quarter 2

Q3

Q4

Quarter 3

Quarter 4

QOSWG

RAB

Quality of Supply Working Group

Regulatory Asset Base

RAP Resettlement Action Plan

RE Renewable Energy

REA Rural Electrification Agencies

RED Regional Electricity Distribution Company

REEEP Renewable Energy and Energy Efficiency Partnership

REFiT Renewable Energy Feed-in Tariff

REIPPP Renewable Energy Independent Power Producer Procurement

RERA Regional Energy Regulatory Association

REOI Request for Expressions of Interest

RIDMP Regional Infrastructure Development Master Plan

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | vi

RFA Request for Application

RFI Request for Information

RFP Request for Proposals

RNT Empresa Rede Nacional de Transporte de Electricidade

ROW Right of Way

RSSC Royal Swaziland Sugar Corporation

RTIFF Regional Transmission Infrastructure Fund Facility

RTS Rooftop Solar

SACREEE SADC Centre for Renewable Energy and Energy Efficiency

SADC Southern African Development Community

SAEP Southern Africa Energy Program

SALGA South African Local Government Association

SAPP Southern African Power Pool

SAPP CC

SAPP OSC

SAPP ESC

SAPP PSC

Southern African Power Pool Coordination Center

SAPP Operating Subcommittee

SAPP Environmental Subcommittee

SAPP Planning Subcommittee

SB Single Buyer

SEA Sustainable Energy Agency

SHS Solar Home System

SIAZ Solar Industry Association of Zambia

SMO System Market Operator

SOW

SPEED+

Scope of Work

Supporting the Policy Environment for Economic Development

SPV Special Purpose Vehicle

SRUC USAID Sector Reform and Utility Commercialization Program

SSIR SAEP Support Information Request

STTA Short Term Technical Assistance

TNA Training Needs Assessment

ToR Terms of Reference

TTP Temane Transmission Project

TTS Targeted Transaction Support

USD $ United States Dollar

USG United States Government

USAID United States Agency for International Development

USTDA United States Trade and Development Agency

VAT Value Added Tax

vRE Variable Renewable Energy

WARMA Zambia’s Water Resource Management Authority

ZESCO Zambia Electricity Supply Corporation

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | vii

ZERA Zimbabwe Energy Regulatory Authority

ZRA Zambezi Revenue Authority

ZTK Zambia–Tanzania–Kenya

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | viii

TABLE OF CONTENTS

ACRONYMS ...................................................................................................................................................... II

TABLE OF CONTENTS ............................................................................................................................. VIII

1 INTRODUCTION .................................................................................................................................... 1

1.1 HIGHLIGHTS FOR THIS QUARTER ........................................................................................................................... 1

1.2 CHALLENGES AND RISKS ............................................................................................................................................. 2

1.3 POWER AFRICA SUPPORT TO AMERICAN COMPANIES ................................................................................ 2

2 MAJOR ACTIVITIES DURING THE REPORTING PERIOD .......................................................... 5

2.1 OUTCOME 1: IMPROVED REGULATION, PLANNING AND PROCUREMENT FOR ENERGY ............ 5

2.2 OUTCOME 2: IMPROVED COMMERCIAL VIABILITY OF UTILITIES ............................................................ 12

2.3 OUTCOME 3: IMPROVED REGIONAL HARMONIZATION AND CROSS-BORDER TRADE .............. 18

2.4 OUTCOME 4: RENEWABLE ENERGY AND ENERGY EFFICIENCY TECHNOLOGIES AND

PRACTICES LOCALLY DEMONSTRATED AND SCALED................................................................................................ 23

2.5 OUTCOME 5: INCREASED HUMAN AND INSTITUTIONAL CAPACITY .................................................. 30

2.6 PROGRAM MANAGEMENT OFFICE ........................................................................................................................ 33

2.7 FINANCE AND OPERATIONS ................................................................................................................................... 37

2.8 TRANSACTION AND ADVISORY SERVICES ........................................................................................................ 39

3 COVID-19 IMPACT ON PROGRAM DELIVERY .......................................................................... 45

APPENDIX A TRANSACTIONS TRACKER .......................................................................................... 46

APPENDIX B SOUTHERN AFRICA PRIORITY TRANSMISSION PROJECTS .............................. 73

APPENDIX C PERFORMANCE MONITORING & EVALUATION TABLES ................................. 74

APPENDIX D PARTICIPANT TRAINING REPORT ............................................................................ 90

APPENDIX E QUARTER 1 SUCCESS STORIES .................................................................................... 92

APPENDIX F ORGANIZATIONAL CHART & RESOURCES ........................................................... 96

APPENDIX G SAEP TEAM TRAVEL DURING QUARTER 1 ............................................................ 97

APPENDIX H SAEP PARTNERS LIST FOR POWER AFRICA PARTNERS .................................... 98

APPENDIX I DETAILED ACTIVITIES PROGRESS YEAR 4 WORK PLAN .................................. 101

APPENDIX J PHOTOS FROM QUARTER 1 ........................................................................................ 142

APPENDIX K ASSUMPTIONS FOR CALCULATION AND INVOICING OF FEE ................... 146

Southern Africa Energy Program Year 4 – FY21 Q1 Quarterly Progress Report | 1

1 INTRODUCTION

The United States Agency for International Development (USAID) Southern Africa Energy Program (“SAEP” or

“the Program”) is a Power Africa initiative designed to provide technical advisory, capacity building and grant

support to counterparts throughout Southern Africa, with the goal of increasing generation of and access to power

throughout the region. The Agreement (AID-674-C-17-00002) for this five-year program was concluded between

USAID/Southern Africa and Deloitte on 15 March 2017. This Quarterly Progress Report (“the Report”)

documents activities and progress made from 1 October to 31 December 2020 during the Program’s first quarter

(Q1) of the Fiscal Year 2021 (FY21). Key results from Q1 were:

▪ Added 900 MW to Power Arica’s transaction pipeline through an SAEP-supported transaction that

reached financial closure

▪ Achieved 105,276 direct electricity access connections

▪ Trained 30 people in global clean energy

▪ Developed 14 new reports, analyses, reviews, action plans and tools to improve the enabling environment

and reduce barriers to energy sector growth

More details on the above listed tangible results are given in the content of this report.

1.1 HIGHLIGHTS FOR THIS QUARTER

▪ SAEP Awards Madagascar Mini-Grid Development Grant. During a virtual live event on 23 November 2020, SAEP

announced the winners of the Madagascar Mini-Grid Development Grant: Autarsys Madagascar, Hydro

Ingenierie Etudes Et Realisations (HIER), and Henri Fraise Fils & Cie. USAID hopes to support economic

development and improve the lives of the Malagasy people with a USD $1.2 million grant to build or extend

mini-grid electricity in rural areas. The event included remarks by United States (U.S.) Ambassador to

Madagascar, Michael Pelletier; Madagascar Minister of Energy, Water and Hydrocarbons, Christian

Ramarolahy; and Power Africa Coordinator, Mark Carrato. The event was executed with great success,

thanks to a collaborative team effort between SAEP, USAID/Madagascar and Power Africa. Minister

Ramarolahy expressed his appreciation of United States Government (USG) support and recognized the

importance of the grant for rural Madagascar where the program is expected to electrify an additional 5,200

businesses and households.

▪ Mozambique’s Temane Transmission Project Reaches Financial Close. On 10 December 2020, the Temane

Transmission Project (TTP) achieved a major milestone when all funders, namely the World Bank, Norwegian

Trust Fund, the African Development Bank (AfDB), the Islamic Development Bank (IsDB) and the OPEC Fund

for International Development (OFID) issued letters of effectiveness. This means that all conditions precedent

for the respective loans and grants to become effective have been met. The USD $542 million TTP is designed

to evacuate power from the Temane Power Plant located in the northern part of Inhambane Province to

Maputo, the nation’s capital of 1.2 million people located in the south of the country, to service households,

businesses and industrial concerns. Construction of the 400 kV TTP transmission line with a capacity of 900

megawatts (MW) totaling 563 km will be completed by 2023 and is the first phase of the Mozambique

Integrated Transmission Backbone System Project. Since 2018, SAEP has supported Mozambique’s national

utility, Electricidade de Moçambique (EDM), in bringing TTP to financial close (FC) by providing an embedded

advisor to deliver long-term organizational and technical support.

▪ Botswana Launches Rooftop Solar Program. Botswana reached a significant milestone in its journey towards clean

energy and energy security with the launch of the Rooftop Solar (RTS) Program on 3 November 2020 at the

Botho University in Gaborone, Botswana. SAEP assisted Botswana’s Ministry of Mineral Resources, Green

Technology and Energy (MMGE) to develop RTS Guidelines, which were adopted in June 2020. These

Guidelines define the framework, processes and pricing for the implementation of roof and ground-mounted

small-scale grid-tied solar photovoltaic (PV) systems. The initiative will add generation capacity and help to

reduce the country’s domestic power supply deficit. In preparation for the event, SAEP supported the MMGE

to draft the official invitations and event agenda; review the Honorable Minister Lefoko M. Moagi’s official

remarks; develop talking points for the U.S. Ambassador to Botswana, Craig Cloud; and print the RTS

Guidelines as a booklet to be distributed to event attendees.

▪ Improving Mozambican Utility’s Customer Management Using Human-Centered Design. SAEP is implementing a

human-centered design (HCD) approach at the Mozambican utility, EDM, to improve customer centricity and

facilitate new connections in Mozambique. The concept of “customer centricity” is based on the perception

that customers are more likely to connect to the grid if their experiences throughout the process are easy

and employees are providing better customer service. On 21 October 2020, SAEP met with EDM executives

to discuss the proposed HCD solutions and implementation roadmap. EDM executives were comfortable with

the solutions and expressed their support in principle. The executives agreed to the importance of community

engagements and acknowledged that this aspect would add value to EDM. On 16 December 2020, SAEP

assisted EDM to present the solutions and roadmap to the EDM Board for approval. Following approval, SAEP

and EDM will prepare the implementation process in quarter 2 (Q2).

▪ Angola Electrification and Transmission Assistance Progresses. SAEP is assisting Angola’s electricity distribution

company Empresa Nacional de Distribuição de Electricidade (ENDE) to develop and implement internal systems

and processes required to install over 1.2 million prepaid meters in the coming four years under the African

Development Bank’s (AfDB) Energy Sector Efficiency and Expansion Program (ESEEP) Phase 1. In Q1, SAEP

continued to support the ENDE Project Implementation Unit (PIU) to prepare the required tender packages.

This has resulted in the AfDB’s approval of the systems and integration services tender documents, which will

enable ENDE to issue the specific procurement notice and the initial selection document to the bidders.


SAEP’s technical specialists also worked with the transmission company Empresa Rede Nacional de Transporte

de Electricidade (RNT) PIU team to draft and finalize critical procurement documents to meet AfDB’s

standards and procurement timelines for the Central-South transmission backbone project. SAEP assisted

RNT to finalize the evaluation report for the expressions of interest (EoI) for the recruitment of the

Resettlement Action Plan (RAP) consultant; evaluate 31 prequalification documents for the Engineering,

Procurement and Construction (EPC) contractor; and revise and conclude the request for proposals (RFP)

and terms of reference (ToR) for an owner’s engineer.

The remaining sections of this report document program activities pursued, challenges identified and – where

applicable – mitigation strategies implemented during the quarter. A series of appendices provide details on

program staffing, including short term technical assistance (STTA) and resources mobilized; performance

indicators and results; and progress reporting against activities included in SAEP’s Year 4 Work Plan.

1.2 CHALLENGES AND RISKS

Challenges:

▪ Coronavirus Pandemic. The coronavirus outbreak and resulting lockdown and travel restrictions has impacted

SAEP program delivery and expected outcomes. SAEP closed its Pretoria office on 23 March 2020 and the

team has been teleworking ever since. Similar measures were imposed in many other countries in the region,

which has limited the Program’s ability to engage counterparts. The onset of a second wave of infections

towards the end of Q1 has caused many countries to reinstate hard lockdowns. Despite lockdowns and having

to adapt to different ways of work, SAEP continues to advance electricity reform activities and support

counterparts, minimizing disruptions as much possible.

Ongoing Risks:

▪ COVID-19 Lockdowns: By the end of Q1, it was not clear for how long existing lockdowns and travel

restrictions will continue, which could affect activity planning and implementation as well as require

potential modifications to the SAEP work plan as it relates to how the Program delivers specific activities

or delays in delivery for some activities, which are laid out in the activity tables in Appendix I. In addition,

the coronavirus pandemic is delaying the ability of governments and other counterparts such as project

developers to advance their projects, activities and decisions that could cause delays to not only activity

implementation, but also energy project advancement that SAEP relies on for Program results. Specific

information on the impacts on results are highlighted in the Outcome and activity table status update

sections.

▪ Angola AfDB ESEEP and World Bank Program Delays. SAEP is supporting both RNT and ENDE as they work to

advance the AfDB ESEEP program. The RNT transmission efforts have experienced delays related to

procurement. An example is the recruitment of the Owner’s Engineer consultant which has been delayed due

to the need to relaunch the entire process as a result of ineligibility of key personnel from the shortlisted six

companies. These delays will likely cause SAEP to recognize associated results later than expected. In addition,

there have been delays to the rollout and signing of the World Bank program that will inject additional funding

to ENDE’s electrification plans. This will also lead to a delay in SAEP claiming anticipated connections targets.

▪ Global Market Fluctuations and Regional Interdependencies. Prices of energy commodities are often affected

by global market fluctuations. Likewise, national energy systems naturally have regional interdependencies

pertaining to imports, exports, and transportation networks. Because of this, each Southern African nation

is somewhat constrained by trends and events impacted by external factors. To mitigate this constraint,

SAEP will incorporate market research and trend analysis to stay abreast of global energy market

developments and changes. SAEP will also focus on regional community engagement and coalition building

to unite Southern African nations in energy sector reform and coordination where possible. The SAEP

team will also monitor interdependencies that can affect the success of the Program. The global economic

slowdown caused by COVID-19 has resulted in oil prices being reduced, which has impacted Angola’s

financial sustainability and has negatively affected currencies in countries such as Zambia. Currency

devaluation in Zambia is influenced by long-standing high debt levels and has been exacerbated by COVID-

19.

1.3 UPDATE ON COVID-19 SUPPORT ACTIVITIES

In Year 3, SAEP undertook a comprehensive review of its work plan activities and approach to delivery to

understand how it can help counterparts identify and mitigate COVID-related challenges, develop and execute

business continuity plans and continue improving the overall energy sector in Southern Africa. From this exercise,

SAEP developed new activities to help counterparts begin to prepare for and address the challenges of operating in

a post-COVID-19 environment. These activities started in Year 3 and continued into Q1 of Year 4. Updates on

the support to counterparts on COVID-19 specific activities during this quarter are shared below:

▪ Regulatory Advisory to Issue Utility Accounting Order

SAEP completed this activity in Q1. SAEP developed an accounting order tool for use by regulatory

authorities that allows unexpected expenses to be accumulated for possible future recovery. To

explain this tool, SAEP developed and distributed a ‘packet’ of documents and held virtual meetings in

September 2020 with the Eswatini Energy Regulatory Authority (ESERA), Botswana Energy

Regulatory Authority (BERA), the Electricity Control Board of Namibia (ECB), and Malawi Energy

Regulatory Authority (MERA). Feedback from the participant regulators was positive and in October


2020, SAEP developed and distributed a document providing guidance to the regional regulatory

authorities, including a sample letter and a data-recording template, on how to direct their utilities to

segregate and record COVID-related expenses in a particular manner.

▪ Regulatory Support to Provide Disconnection Relief for Customer Non-Payment

o SAEP investigated the value of advising regulators on the implementation of a disconnection relief

program for customer non-payment. The purpose of such support would be to advise utilities on

how to approach such issues, which would, by extension, support the businesses and individuals

financially during these dire and unprecedented times. On 15 October 2020, SAEP finalized a report,

the ultimate conclusion of which, was that whilst the document may serve as a useful reference

resource for regulators, given the significant prevalence of prepaid electricity consumers in the SADC

region (and other considerations), the full implementation of such a moratorium or similar

disconnection relief programs would be of limited impact to countries in the SADC region during this

pandemic. This activity was completed.

▪ Support Assessment of Impacts and Contingency Planning for EGENCO

The SAEP and EGENCO project team reached the final stage of the development of a Business

Continuity Management (BCM) System, BCM Policy and a Business Continuity Management Plan

(BCMP), now at the EGENCO Executive Management approval stage after which it will be presented

to the EGENCO Board for acceptance. Concurrently, the Business Contingency Plan (BCP) for

COVID-19 has been developed, incorporating EGENCO’s initial interventions into a comprehensive

plan. The BCP is also currently with the Executive Management for review. Once EGENCO has

adopted the business continuity documents, SAEP will roll out the related training and onboarding

program in the next quarter.

▪ Support Assessment of Impacts and Contingency Planning for EDM

o SAEP supported EDM to compile a Business Continuity Plan. Additionally, SAEP focused on the

development of a cash flow model that contains a forecast of EDM's financial availability (revenue

generation vs. expenses over the coming periods). SAEP applied the model under three scenarios and

the results will provide EDM with an insight into the impact on its financial position. The plan and the

financial model were presented to the EDM COVID-19 Task Force in December 2020, which was

received with significant interest. The Task Force will present the model and plan to the EDM Board

of Directors for approval in the next quarter.

1.4 POWER AFRICA SUPPORT TO AMERICAN COMPANIES

During this quarter, SAEP did not provide direct technical assistance to American companies. The following

section identifies potential opportunities for U.S. companies to participate in the Southern African energy sector.

▪ Technical Assistance

o Various energy projects in Southern Africa are in need of development and financing. Such financing

could be targeted at rural and mini-grids, off-grids, Independent Power Producer (IPP) projects and

transmission line projects, but financiers must be comfortable with the inherent project and off-taker

risks in SAEP targeted countries.

▪ Potential Opportunities for U.S. Companies

o Angola: electrification and transmission project related tenders (RNT and ENDE)

o Malawi: 50 MW Quantelle Solar PV

‒ Description: Quantelle is developing a 50 MW solar PV project. Quantelle (Seller) and ESCOM

(Buyer) signed a 20-year PPA. Quantelle is seeking funding from American Trade Finance

(Atrafin) to import solar equipment from the US. Atrafin is assisting Quantelle to raise Export-

Import (EXIM) underwritten finance for 15- to 18-year debt funding with sovereign guarantees

behind ESCOM PPAs. The intention is to include sovereign guarantees by the Government of

Malawi as part of the IA.

‒ U.S. Opportunity: Partnership and funding by U.S. entities, such as Atrafin

o Mozambique: 400 MW Nacala Natural Gas Combine Cycle Gas Turbine (CCGT) Project

‒ Description: Nacala Power Limitada is developing the 400 MW CCGT project in Mozambique.

The project consists of two phases of 200 MW CCGT each. The project configuration includes a

single 200 MW train with three gas turbines and one steam turbine producing 200 MW of power

to be transmitted from the power station to Nacala-a-Velha substation and then on to Namialo

substation. The project’s aim is to ultimately enable the full 400 MW generated at Nacala to be

distributed on the northern grid, which will play an important role in stabilizing the power

balance and supply to the northern region of Mozambique, mitigate long line brown outages, and

save power losses on single direction long transmissions. Financial close is targeted for Q3 of

2021.

‒ U.S. Opportunity: i) General: Nacala is seeking an IPP partner for a 36% to 40% equity

participation. This item is still open and an IPP partner is still required. ii) APR Energy: SAEP

introduced APR Energy to the project developers. APR Energy is owned by Seaspan and listed on

the New York Stock Exchange. Although it is headquartered in Hong Kong, the company is

based in Jacksonville, Florida in the U.S. iii) other general project development and contracting

opportunities.

O Namibia: CENORED Solar PV Projects


‒ Description: CENORED seeks to procure IPP PV plants for integration into its network. SAEP is

assisting CENORED with the review of the i) tariff financial model, ii) Power Purchase

Agreement (PPA) and iii) Direct Connection Agreement.

‒ U.S. Opportunity: CENORED intends to conduct an IPP bidding process for the installation of

solar PV grid-connected systems located at various sites throughout the CENORED distribution

area in Namibia, with emphasis on one of the sites (preferably Tsumeb) having a 10 MW solar PV

plant with an integrated (10 MWh) battery storage system.

O Namibia: NamPower Concentrated Solar Power

‒ Description: NamPower is considering a public tender for a transaction advisor for the CSP

project. SAEP is in discussion with the Namibian power utility for potential assistance to the

NamPower project team and its appointed advisor.

‒ U.S. opportunity: i) Transaction advisory services to NamPower and ii) potential solar CSP IPP

opportunity

o Namibia: 5 MW Solar PV Oshakati Premier Electric

‒ Description: Oshakati Premier Electric (OPE), an electricity distributor in Namibia, intends

facilitating the addition of a new 5 MW solar PV plant to be embedded in its network. Financial

close is anticipated by 31 December 2021. OPE requested advisory from SAEP on commercial

structuring options, which at a high level include

‒ i) self-generation, ii) IPP generation and iii) an IPP approach lead by OPE shareholding.

Discussions for SAEP support to OPE are ongoing for finalization in January 2021.

‒ U.S. opportunity: i) Engineering, Procurement & Construction (EPC) contract opportunity; ii)

Supply of solar PV panels, plant and inverters; iii) Supply of Battery Energy Storage Systems

(BESS)

o South Africa: 160 MW Solar PV ArcelorMittal South Africa

‒ Description: ArcelorMittal South Africa (AMSA), a steel producer, released a request for

information (RFI) to IPPs to build, own and operate solar PV power plants across its six

operational sites with a total capacity of 160 MW. The deadline for submissions was 28 August

2020. AMSA is currently evaluating RFI responses whereafter it will issue a RFQ to shortlisted

entities. Ultimately, AMSA intends entering into PPAs with the successful bidder(s). The IPPs will

be required to conduct all prefeasibility studies, “bankable” feasibility studies, environmental

impact assessments and other surveys required to confirm financial and technical viability of the

facilities. The IPPs will be responsible for obtaining all governmental, regulatory, and legal permits

and licenses required for implementation of the solar PV plants. SAEP is in discussion with AMSA

for potential transaction advisory assistance.

‒ U.S. opportunity: i) Opportunity to participate as IPP; ii) Supply of solar PV panels, plant and

inverters; iii) Supply of BESS

o South Africa: 600 MW Sasol Renewable Energy Procurement

‒ Description: In May 2020, Sasol South Africa issued a RFI for the supply of 600 MW of renewable

energy to its South African operations to reduce its yearly greenhouse gas (GHG) emissions by

about 1.6 million tons. SAEP has offered general transaction advisory assistance to Sasol and is

awaiting Sasol’s response.

‒ U.S. opportunity: i) Opportunity to participate as IPP; ii) Supply of solar PV panels, plant and

inverters; iii) Supply of BESS

o Zambia: 90 MW Unika Wind Power Project

‒ With the support of the Zambian government, Mphepo Power, an IPP registered in Zambia, has

launched studies to prepare for the construction of its Unika wind farm in the east of the

country. Mphepo submitted the feasibility study to the Ministry of Energy and the evaluation

team conducted a site visit in November 2020. In December 2020, the Ministry of Energy Office

for Promoting Private Power Investment provided Mphepo with a draft implementation

agreement. SAEP is assisting Mphepo to review the implementation agreement. Signing of the

implementation agreement is targeted for Q3 of 2021 with FC targeted for Q1 2022. ZESCO

still has a moratorium on PPA discussions and is currently not negotiating with any IPPs. Mphepo

Power plans to engage with ZESCO once the feasibility study is approved. The project needs

medium- to short-term funding.

‒ U.S. Opportunity: The short-term shortfall is USD $335,000 required to finance the remaining

Environmental and Social Impact Assessment (ESIA) work, the measurement campaign, and the

feasibility work. Mphepo has already received a grant from the Energy and Environment

Partnership Trust Fund (EEP Africa) that covers the majority of the full costs for the engineering

and other pieces of work. The shortfall would cover Mphepo’s portion of studies and the

remaining obligations on the ESIA. Mphepo aims to secure another USD $1 million financing

and/or grant to fund "new" work not covered by the immediate shortfall. The required USD $1

million funding would enable Mphepo to be shovel-ready and include the EPC contracting, the

final ESIA and final land restitution work. SAEP introduced Mphepo to the U.S. International

Development Finance Corporation (DFC) for potential assistance.


2 MAJOR ACTIVITIES DURING THE REPORTING PERIOD

2.1 OUTCOME 1: IMPROVED REGULATION, PLANNING AND

PROCUREMENT FOR ENERGY

STAKEHOLDER ENGAGEMENT

During this quarter, the SAEP Outcome 1 (OC1) team

continued to support regulators to promote efficient

operations and cost recovery among the region’s utilities.

OC1 also focused on improving capacities in national

ministries and regulatory authorities in the region by

continuing its work on topics such as the evaluation of

regulatory independence and discussions of common issues in

the evaluation of applications for changes in tariffs. Key

stakeholder support activities under OC1 for Q1 of FY21

included:

▪ Analyzed the application for a rate change filed by the

Eswatini Electricity Company (EEC) and made

recommendations to the Eswatini Energy Regulatory

Authority (ESERA) for its consideration as it develops its

analysis and recommendations to present to the ESERA

Board of Directors (BoD)

▪ Supported Botswana’s Ministry of Mineral Resources,

Green Technology and Energy (MMGE) with the

successful public launch of the 10 MW Rooftop Solar

(RTS) Program on 3 November 2020 in Gaborone

▪ Finalized a document that can be used as a reference guide for regulatory authorities regionally (and beyond)

for certain issues that arise in rate cases. This document is based on SAEP’s previous support to various

regulatory authorities in the region in the evaluation of utility tariff filings and provides recommendations and

answers common questions

▪ Reviewed Angola’s Draft Presidential Decree on the Regulation of the Generation, Transmission, Distribution

and Commercialization of Electricity (Decree No. 56/2016) and provided recommendations to the regulator,

Instituto Regulador dos Serviços de Electricidade e de Água (IRSEA) for consideration. IRSEA submitted the newly

updated “Single Regulation/Decree” to the Government of Angola’s Council of Ministers for review and

approval in December 2020

COUNTRY AND REGIONAL HIGHLIGHTS

ANGOLA

▪ Support to Angola’s Regulatory Institute for Electricity and Water Services, IRSEA

In Year 3, SAEP developed a roadmap to lay out IRSEA’s four priority activities to guide IRSEA’s strategic

focus. In Q1, SAEP commenced with the implementation of the first activity: a review and provision of

recommendations on Angola’s Draft Presidential Decree on the Regulation of the Generation, Transmission,

Distribution and Commercialization of Electricity (Decree No. 56/2016), to promote alignment with Angola’s

Electricity Law. Alignment of IRSEA’s rules and regulations with national legislation is a fundamental necessity if

they are to be an effective regulatory authority.

SAEP reviewed and provided comments on the draft decree and submitted this to IRSEA for their review.

Based on feedback received from IRSEA on 29 October 2020, SAEP prepared and transmitted a table

categorizing IRSEA’s comments as accepted, rejected, or pending additional action. The recommendation was

to have IRSEA originate any additional text required for those classified as “pending additional action.” IRSEA

acknowledged receipt of SAEP’s recommendations on 26 November 2020 and SAEP were advised that in

December 2020, the newly updated “Single Regulation/Draft Decree” was submitted to the Council of

Ministers for review and approval. The extent to which SAEP’s recommendations were incorporated is

presently unknown, but IRSEA has further advised that subject to the feedback from the supervisory body of

Angola’s Government Gazette, the final draft decree will be made available to SAEP. Finally, SAEP is also

awaiting feedback from IRSEA on the exact process of approval and how and when the regulation/decree will

come into legal effect.

The first task of implementing the roadmap is now complete and SAEP will engage with IRSEA on

commencement of the second task in Q2: development of rules for issuing and revoking licenses.

BOTSWANA

▪ Rooftop Solar Program Launch

Whilst SAEP’s support to the development of Botswana’s 10 MW RTS Program was completed in Year 3,

Botswana’s MMGE publicly launched the program on 3 November 2020 at the Botho University in Gaborone.

SAEP were directly involved in assisting the MMGE to develop the RTS Guidelines, which were adopted in

June 2020. These Guidelines define the framework, processes and pricing for the implementation of roof and

ground mounted small-scale grid-tied solar PV systems. The initiative will add generation capacity and help to

reduce the country’s domestic power supply deficit. In preparation of the November 2020 launch event, SAEP

• OC1 Top Achievements and Results

▪ Supported ESERA with their evaluation of

the EEC’s ‘Tariff Increase Proposal for the

Financial Years 2021/22 and 2022/23’

▪ Assisted the Botswana MMGE with the

public launch of the 10 MW RTS Program

▪ Completed and began preparations for the

dissemination of a rate case guide aimed at

building sustainable knowledge sharing

across the region

▪ Supported Angola’s regulator, IRSEA, with

the update of the Draft Presidential Decree

on the Regulation of Electricity, which has

now been submitted to Angola’s Council of

Ministers for review and approval

▪ Reviewed and commented on the final

draft of the Mozambique Electricity Act


supported the MMGE to draft the official invitations and event agenda, review the Honorable Minister Lefoko

M. Moagi’s official remarks, develop talking points for the U.S. Ambassador to Botswana, Amb Craig Cloud,

and print the RTS Guidelines as a booklet to be distributed to event attendees. SAEP was able to participate in

the launch virtually, as the Botswana Power Corporation (BPC) streamed the event via their official Facebook

page. OC1 will share future updates and continue to provide support (as required) to the MMGE as the

program rolls out.

▪ Institutional Support to the Botswana Energy Regulatory Authority (BERA)

In November 2020, the AfDB published its annual Electricity Regulatory Index (ERI) 2020 for Africa, a report

that presents the results of information and data collected via surveys distributed to electricity regulators and

power utility companies in 36 African countries. By utilizing the data, it received, the AfDB developed a variety

of subindices and consequently graded African energy regulators, ranking Botswana 29th out of the 36 rated

countries. Following requests directly from BERA Chief Executive Officer (CEO), Rose Seretse, for support in

improving their present regulatory performance as ranked by the AfDB Index, SAEP has reviewed the AfDB

report and commenced drafting a response to Mrs. Seretse, including some guidance for BERA in this regard.

This support is timely in that some of OC1’s current Year 4 activities, if adopted by BERA, would improve

BERA as a regulatory authority and, by extension, give BERA a better score in the next ERI Report.

Specifically, SAEP’s Year 4 activities on regulatory independence and quality of service programs align with

indicators used in the ERI Report.

ESWATINI

▪ ESERA Rate Case Support

On 19 October 2020, ESERA requested SAEP’s assistance in evaluating the EEC’s Tariff Increase Proposal for

the Financial Years 2021/22 and 2022/23. ESERA anticipated receiving the proposal on 1 November 2020, and

it was duly filed on 30 October 2020. SAEP’s support of this activity will go a long way to ensuring that the

EEC has revenues sufficient to cover costs, resulting in the company being more creditworthy and allowing it

to enter into agreements with private sector power providers without government guarantees, thus increasing

capacity and connections in Eswatini. The support will also increase the capacity of ESERA so that it can better

fulfil its statutory mandate as the national energy regulator in Eswatini. SAEP provided assistance through four

tasks, which were completed and submitted to ESERA in November and December 2020:

1. Determine a reasonable Rate of Return and Weighted Average Cost of Capital (WACC) for EEC

2. Review EEC’s Regulatory Asset Base (RAB)

3. Review EEC’s manpower register

4. Review EEC’s overall allowed revenue requirement and adjustment rate, as well as the proposed

cost-reflective migration and subsidy rollout plan as proposed by the ESERA staff in its proposed

order

SAEP made several recommendations, which were all included in the recommendations submitted to the

ESERA Board by the staff:

o Nominal post-tax WACC should be reduced from 7.92% (as requested by the EEC) to 7.29%.

o In order to account for ‘slippage’ in the actual amount spent on capital projects relative to budget, the

projected RAB should be reduced by 10% for each year in the application.

o An annual labor productivity adjustment of 1% in labor and overtime costs should be instituted on

the EEC, and with a 2014 World Bank study appearing to indicate that the EEC is overstaffed in the

delivery function, the utility should conduct an audit (with the support of an appropriately skilled

consultancy firm) of the company’s employee mix and structure (by business segment).

SAEP’s correspondence with ESERA will continue in Q2 in support of the presentation of these

recommendations by ESERA’s staff to the ESERA Board by the end of January 2021.

▪ 40 MW Solar PV Procurement Program

In an effort to increase national energy resilience, Eswatini’s Ministry of Natural Resources and Energy

(MNRE) has been charged with reducing the country’s reliance on imported electricity and to develop local

renewable energy projects to meet both environmental clean energy objectives and stimulate economic

growth. SAEP has committed to support the MNRE’s procurement efforts in this regard.

The procurement process is supported by Power Africa’s partner, the African Legal Support Facility (“ALSF”),

a public international organization dedicated to providing legal advice and technical assistance to African

countries for complex commercial transactions.

The RFQs for the first and second tranche procurement programs were issued in June 2019 and August 2020

respectively. OC1 drafted the Procurement Regulations for Eswatini working together with the MNRE and

ESERA. In addition, SAEP directly supported one of the bidders, Green Building Africa (GBA).

In November 2020, SAEP was made aware of a variety of procurement activities presently being undertaken in

Eswatini and engaged with officials within ESERA and the MNRE in this regard:

o In fulfilment of Eswatini’s 40 MW solar PV procurement program (for which ESERA issued a Request

for Qualification (RFQ) in June 2019), ESERA are requesting bids for projects from 5 to 15 MW,

potentially resulting in three to eight projects making up this tranche

o Further, an RFQ was issued by the Eswatini Civil Aviation Authority (ESWACAA) on 10 November

2020 for an 850-kW solar PV facility at the King Mswati III International Airport in Mbabane. Given

the different sources of these RFQs, it is unclear how they will be coordinated and whether the

ESWACAA’s 850 kW project will form part of the larger 40 MW procurement tranche. At present,

they appear to be separate programs


SAEP continues to follow up with officials in Eswatini for further support needed in their procurement

activities. Eswatini will revert back with any further specific support needed.

MOZAMBIQUE

▪ Mozambican Regulator Gas Roadmap: Institutional Framework Development

Following regular communication with the Mozambican Energy Regulatory Authority, Autoridade Reguladora de

Energia (ARENE), throughout the quarter, SAEP made significant changes and updates to the roadmap to

support ARENE’s institutional development. The roadmap sets out the activities essential for ARENE to

become a functional and effective authority and fulfill its legal obligations as Mozambique’s national energy

regulator.

During the period 24 November to 31 December 2020, SAEP engaged with ARENE to develop a focused and

updated roadmap with three priority activities identified as;

1. Support ARENE (as needed) with activities related to the Project for Promotion of Auctions for

Renewable Energies (PROLER) Procurement Program

2. Conduct a desktop study of natural gas regulation in three other African countries

3. Support with the drafting of basic rules and regulations for the operation of ARENE

By the end of Q1, this document was complete. SAEP is awaiting feedback from ARENE upon the return of

key staff from the recent holiday season, following which, implementation of this activity can commence in Q2.

• Mozambique Electricity Act

On 8 December 2020, USAID/Mozambique requested SAEP’s comments on the latest draft of Mozambique’s

proposed Electricity Act. With the support of SAEP technical consultants, Márzio de Moura and Ernesto

Johannes, a report to this effect was submitted to USAID/Mozambique on 11 December 2020. In summary,

SAEP’s report notes that the new law establishes that the transmission company will also be the Single Buyer.

SAEP’s position is that, whilst not an optimal market structure, it is a significant step forward for the

Mozambique electricity supply industry.

REGIONAL

▪ Accounting Order (COVID-19 Support Activity)

In the wake of the COVID-19 pandemic, SAEP developed tools for use by regulatory authorities – among

others – that may be useful in managing the effects of COVID-19 on utilities. One such tool is an accounting

order that allows unexpected expenses to be accumulated for possible future recovery. To explain this tool,

SAEP developed and distributed a ‘packet’ of documents and held virtual meetings in September 2020 with

ESERA, BERA, the Electricity Control Board (ECB) of Namibia and the Malawi Energy Regulatory Authority

(MERA). Feedback from the participant regulators was positive and in October 2020, SAEP developed and

distributed a document providing guidance to the regional regulatory authorities, including a sample letter and

a data recording template, on how to direct their utilities to segregate and record COVID-related expenses in

a particular manner. With ESERA, BERA and the ECB all having rate case proceedings in the next 12 months,

COVID-related expenses can be evaluated for recovery as a part of the reconciliation mechanism. Whilst this

activity is completed, given the continuation of the pandemic, SAEP will provide support to regulators in the

region as needed.

▪ Regulatory Support to Provide Disconnection Relief for Customer Non-Payment (COVID-19

Support Activity)

This activity was originally conceived in light of the 2020 COVID-19 pandemic and resultant economic

lockdowns occurring in almost every country globally. Such widespread economic lockdowns could have a

significant effect on both business and personal income streams and therefore limit many businesses and

individuals’ capacities to maintain their electricity bill obligations. In an effort to provide utilities with support

in this regard, SAEP investigated the value of advising regulators on the implementation of a disconnection

relief program for customer non-payment. The purpose of such support would be to advise utilities on how to

approach such issues, which would, by extension, support the businesses and individuals financially during

these dire and unprecedented times. On 15 October 2020, SAEP’s final report concluded that whilst the

document may serve as a useful reference resource for regulators, given the significant prevalence of prepaid

electricity consumers in the SADC region (and other considerations), the full implementation of such a

moratorium or similar disconnection relief program would be of limited impact to countries in the SADC

region during the pandemic. As such, no further action is planned for this activity and it is, for all intents and

purposes, completed.

▪ Rate Case Processing Guide

Whilst originally conceived as the “Rate Case Guide”, this document was ultimately titled “Common Issues in

the Evaluation of Applications for Changes in Tariffs.” The evaluation of tariff filings is one of the most

fundamental and important activities that regulators undertake. Evaluations enable utilities to set rates at levels

that balance both utility expense and reasonable profit requirements, whilst protecting consumers from the

traditional risks in a monopoly market. This document is not intended to be a detailed guide for these

evaluations but rather articulates issues that SAEP has encountered while supporting various regulatory

authorities in the region in the evaluation of utility tariff filings. The document provides recommendations or

context that regulators can use in future filings or in answering questions for regulated utilities. SAEP intends

for it to be used as a reference tool by regulatory authorities in their work.


Originally planned as a Year 3 activity, the document was completed on 11 November 2020. Whilst it has

been shared, the more comprehensive dissemination of the report will be the focus of Q2. At least one

important recommendation in the document concerning depreciation on donor-funded assets was used by

ESERA’s staff in its current rate case with the EEC. If adopted by the Board, this recommendation will save

ratepayers in Eswatini approximately E 70 million (USD $4.6 million) in each of the next two years.

▪ Rate Case Guide Dissemination

With the November 2020 completion of the Common Issues in the Evaluation of Applications for Changes in

Tariffs document, the Year 4 activity will now prioritize the dissemination of this document to regulatory

counterparts in the region. This commenced with circulating the final PDF version within SAEP (including

country managers) and with regulatory officials in Botswana, Eswatini, Lesotho, Namibia, Malawi, South Africa

and Zambia between 12 and 16 November 2020. A copy was also shared with the Regional Energy Regulatory

Authority (RERA). On 17 November 2020, SAEP’s OC1, Outcome 5 (OC5) and Communications team

participated in a constructive virtual meeting to discuss dissemination plans for a wider audience as well as

publication approaches. Subject to appropriate adaptions and approvals of the content, it was decided that

Power Africa’s social media channels, an email-based document release and a series of webinars will be utilized

in the more extensive rollout of the rate case guide document in Q2.

▪ Evaluation of Regulatory Independence

Regulatory independence is essential toward providing effective and efficient service, balancing the interests of

energy suppliers and consumers. However, such independence still does not exist in the region. In an effort to

not only publicize this, but to also simultaneously offer support and recommendations to regulators, SAEP has

set out to conduct an evaluation of the independence of regulatory counterparts in the SADC region, using a

small number of SAEP-developed criteria. The evaluation constitutes a desktop assessment of a selection of

countries’ regulatory legislation and the resultant report will be shared with counterparts to be used as

desired to enhance regulatory independence. During Q1, OC1 developed a draft report which has been

subjected to a first internal review. Preliminary improvements to the draft include the expansion on the

evaluation criterion, updated illustrative examples and an increased scope of legislative review. Internal

development of the report continues, with activity completion and report publication anticipated in Q2.

ZAMBIA

▪ One-Stop-Shop for Development of Renewable Energy Projects

SAEP continues to support the European Union’s Increased Access to Electricity and Renewable Energy

Production (EU/IAEREP) Program in its’ analysis and potential implementation of a “One-Stop Shop”, aimed at

assisting potential IPPs in bringing potential projects in Zambia to fruition in an expedited manner. Whilst

SAEP participated in a successful virtual workshop in quarter 4 (Q4) of Year 3 with members of the working

group, efforts to hold a November 2020 virtual workshop have been met with delays, and as at 31 December

2020, this has yet to be scheduled. Furthermore, plans for members of the working group to participate in a

country tour to either South Africa or Rwanda continues to be delayed by the COVID-19 pandemic and the

resultant travel restrictions. SAEP will continue to support the EU/IAEREP Program, the Zambian government

and this activity as required in Year 4.

ACTIVITIES AND RESULTS

Activity No Activity Title SAEP

Activity

Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies

Deliverable(s) Activity Status

Y4.01.01.04.ANG* IRSEA: Review

Angola’s Electricity Law and Propose Regulations for IRSEA

David

Jankofsky, Tom Herbert

10/1/2020 -

11/30/2020 01/31/2021

IRSEA

Request

Y3.01.01.01.ANG

- Angola

Roadmap for

regulator

enhancement

• Proposed

regulations to allow IRSEA to implement its part

of Law

In progress: SAEP

commenced with the implementation of the first of four main activities as set out in the roadmap; a review

and provision of recommendations on Angola’s Draft Presidential

Decree on the Regulation of the Generation, Transmission, Distribution

and Commercialization of

Electricity (Decree No. 56/2016), to promote

alignment with the Angolan Electricity Law. Furthermore, SAEP, with the support of consultants,

prepared and transmitted a table categorizing the IRSEA comments as accepted,

rejected, or pending additional action. The recommendation was to

have IRSEA originate any additional text required for those classified as “pending

additional action.” IRSEA acknowledged receipt of SAEP’s recommendations on

26 November.



Activity

Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Y4.01.01.05.REG* Regional Battery Services Regulation

David Jankofsky,

Tom Herbert

10/1/2020 - 12/31/2020 03/31/2021

SAEP Initiative Follow-

on/Expansion of Year-3 activity

Y3.01.01.10.RSA -

Approach to

battery storage

rules

• Develop a regional “guide” to provide

regulatory options to regulators.

Starting point will be the Namibian report, made

generic for the Southern Africa region

• Webinar sharing report and insights with

regulators

In progress: Using SAEP's Year 3 Battery Services Report and

Recommendations ("A Regulatory Approach") developed specifically for

Namibia’s ECB, in Year-4 OC1 will develop a generic Guide to Battery Services

Regulation that will contain the major questions to be asked and answered before a country makes a decision

as to how it might regulate. This Guide will be downloadable and then

presented in a Webinar-type setting.

Y4.01.01.07.REG Rate Case Guide Dissemination

David Jankofsky

10/1/2020 - 12/31/2020 02/28/2021

SAEP Initiative

Y3.01.01.08.REG

- Rate Case

Processing Guide

- Outcome 5

• Webinar developed from the Rate Case

Guide

In progress: a final document of what was the “Rate Case Guide” (a year-3

activity), but is now called

Common Issues in the Evaluation of Applications for Changes in Tariffs was

completed. Furthermore, SAEP’s Outcome 1, Outcome 5 and

Communications Personnel participated in a constructive virtual meeting to consider

expanded approaches to this Year-4 dissemination activity. Subject to

appropriate adaptions and approvals of the content, it was decided that the SAEP and Power Africa’s social

media channels, an e-mail-based Document Release and a series of webinars will

all be utilized in the more extensive roll-out of this activity in Q2

Y4.01.01.09.SWA Eswatini Rate Case Support

David Jankofsky

11/03/2020-01/29/2021

ESERA Request

N/A • Commentary on each part of Rate Case

Completed: ESERA requested SAEP’s assistance in evaluating the EEC’s

application for a change in tariffs for the financial years 2021–22 and 2022–23 (filed

on 30 October 2020). The assistance was supplied in the form of four tasks:

1. Determine a reasonable Rate of Return and Weighted Average Cost of

Capital (WACC) for EEC, 2. Review EEC’s Regulatory Asset Base (RAB), 3. Review EEC’s Manpower

register; and 4. Review EEC’s overall allowed revenue and

adjustment rate, as well as the proposed cost-reflective and subsidy rollout plan as

proposed by the ESERA staff

in its proposed order.

Y4.01.01.10.MOZ* Mozambique

Electricity Act TA

David

Jankofsky

10/01/2020-

09/30/2021

SPEED+

transition activity

4.01 • Detailed work

plan for MNRE to advance the Act

• Briefing materials

to support MNRE efforts

• Training materials

for parliamentarians

Completed: On 8

December 2020, USAID Mozambique requested SAEP’s comments on the

latest draft of Mozambique’s proposed Electricity Act. With the support of SAEP

technical consultants, Márzio de Moura and Ernesto Johannes, a report to this

effect was submitted to USAID Mozambique on 11 December 2020.

Y4.01.01.11.MOZ* ARENE Institutional Framework

Development

David Jankofsky,

Tom Herbert

10/01/2020-09/30/2021

Continuation of SPEED+

TA

Y3.01.05.01.MOZ • Determine ARENE's role in evaluating RE

projects

• Basic set of regulatory rules

and procedures

Not yet started: Following regular communications with ARENE throughout the

quarter, significant changes and updates to the roadmap to support ARENE’s Institutional Development



Activity

Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


• Proposed organogram and cost estimates for

staff

• Review TOR for ARENE website

have been made. The most recent updates are from the period 24 November to 31

December 2020. SAEP and its Technical Consultant, Ernesto Johannes, updated

the roadmap and identified 3 priority activities: 1. Support ARENE (as

needed) in activities related to the PROLER Procurement Program; 2. Desktop Study of Natural

Gas Regulation in 3 other African Countries (“peer review”); and

3. Support with the drafting of basic rules and regulations for the operation of ARENE.

Y4.01.01.12.REG Evaluation of Regulatory

Independence

David Jankofsky

11/03/2020 - 01/29/2021

02/28/2021

SAEP Initiative

Y3.01.01.09.REG • Evaluation of independence of

regulatory counterparts in SAEP resulting in a report that

counterparts can use if desired to enhance

regulatory independence

In progress: OC1 has developed a draft report

which has been subjected to

a first internal review. Notable changes include the expansion on the Evaluation

Criterion from three to four, and the consideration of a fifth. Internal review and

development of the report continues in Q2. A completion date of 28

February 2021 seems reasonable.

Y3.C19.01.01.13.REG* Regulatory Support

to Provide Disconnection Relief for

Customer Non-payment

David

Jankofsky, Tom Herbert

04/01/2020-

10/30/2020

RERA

(Regional), Covid-19 Support

N/A • Regulations

enabling South African IPPs to be licensed for cross-

border trade

Completed: On 15

October 2020, SAEP finalized a report, the ultimate conclusion of which

was that, whilst the document may serve as a useful reference resource

for regulators, given the significant prevalence of pre-paid electricity consumers in the SADC-region (and other

considerations), the full implementation of such a moratorium or similar

disconnection relief program would be of limited impact to countries in the SADC-

region during this pandemic.

Y3.C19.01.01.14.REG* Regulatory Advisory to Issue

PPA Renegotiation Order

David Jankofsky,

Tom Herbert

04/01/2020-10/30/2020

RERA (Regional),

LEWA (Lesotho)

N/A • Template for a

Draft Order

Completed: In September 2020 SAEP drafted a report

which concluded that the renegotiation of PPA’s is an issue without the pandemic.

Therefore, the rationale behind these renegotiations is not significantly related to

the COVID-19 pandemic to require the continuation of the activity.

Y3.C19.01.01.15.REG* Regulatory Advisory to Issue Utility Accounting

Order

David Jankofsky,

Tom Herbert

04/01/2020-10/30/2020

RERA (Regional), Covid-19

Support

N/A • Explanatory Document

• Sample

Accounting

Order/Accounting Order Template

• Virtual Workshop

• Technical

Assistance Country-specific Accounting Orders

Completed: SAEP developed an Accounting Order tool for use by

regulatory authorities that

allows unexpected expenses to be accumulated for

possible future recovery. To explain this tool, SAEP developed and distributed a

‘packet’ of documents and held virtual meetings in September 2020 with ESERA, BERA, the ECB, and

MERA. Furthermore, Feedback from the participant regulators was

positive and in completion of this activity (which occurred in October 2020), SAEP

developed and distributed (to BERA, ESERA, the ECB, the ERB, MERA, LEWA and

NERSA) a document providing guidance to the regional regulatory authorities (in the form of a



Activity

Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


sample letter and a data recording template)

Y4.01.04.01.SWA Support Eswatini Procurement Tranches

Tom Herbert 10/01/2020-30/09/2021


on/Expansion

of Year-3 activity

Y3.01.04.01.SWA • Assistance to ESERA in adhering to the timelines

for Procurement Tranches 1 (Solar PV) and 2 (Biomass) – both

40 MW

In progress: In November 2020, SAEP was made aware of a variety of procurement activities presently being

undertaken in Eswatini and engaged with officials within ESERA and the Ministry of

Natural Resources and Energy (MNRE) in this regard. Some of these

activities include ESERA requests for project bids from 5-15 MW (3-8

projects) in fulfilment of Eswatini’s June 2019 published 40MW Solar PV

Procurement Programme and an RFQ issued by the Eswatini Civil Aviation

Authority for an 850 kW

Solar PV facility at the International Airport in Mbabane. SAEP will continue

to engage with officials in Eswatini in support of their procurement activities, as

needed.

Y4.01.04.02.ZMB* Zambia One-Stop-Shop

Chris Mubemba

10/1/2020 - 12/31/2020

01/31/2021

Continuation of activity

delayed from Years 2 and

3

Y3.01.04.04.ZMB • Support to the

European Union’s Increased Access to Electricity and Renewable Energy

Production (EU/IAEREP) Team and Lead

Consultant, Mr. Azem Kastrati

In progress: SAEP continues to support the

European Union’s IAEREP Program in its’ analysis and potential implementation of

a “One-Stop Shop”, which is aimed at assisting potential IPP developers in bringing

potential projects in Zambia to fruition in an expedited manner. Whilst SAEP

participated in a successful virtual workshop in Q4 of Year-4 (September 2020) with members of the

working group, efforts to hold a November 2020 virtual workshop have been

met with delays, and as at 31 December 2020 this has yet to be scheduled.

Furthermore, plans for members of the working group to participate in a

country tour to either South Africa or Rwanda continues to be delayed by the

COVID-19 pandemic and the resultant travel restrictions.

Y4.01.04.03.BWA* Follow up on BPC 100 MW solar support

Christine Covington

10/1/2020 - 12/31/2020 09/30/2021

Continuation of activity

delayed from

Years 2 and 3

Y2.01.04.13.BWA • Assistance to BPC in developing and implementing the

procurement program

In progress: Botswana’s Energy Ministry had planned to release a new IRP, which

includes several renewable energy projects, some of which have been “marked” for Mega Solar, on 24

November 2020. However,

this release had been delayed into December and

as at 8 January 2021, the status is still unknown. Enquiries will continue, as

will SAEP support as needed.

Please see Appendix I for information on all SAEP activities.


2.2 OUTCOME 2: IMPROVED COMMERCIAL VIABILITY OF

UTILITIES


In this quarter, the SAEP Outcome 2 (OC2) team continued

to assist utilities in Angola, Malawi, Mozambique and Zambia

to achieve expected outcomes in the SAEP Year 3 Work Plan

and commence the approved Year 4 Work Plan activities.

The COVID-19 pandemic continued to require all

counterpart engagements to be executed virtually, which

presented challenges but also gave insights into a new type of

support environment. Key stakeholder activities under OC2

for Q1 of FY21 included:

▪ Supported ENDE under the AfDB’s Energy Sector

Efficiency and Expansion Program (ESEEP) Phase 1 to

complete bidding documents to procure prepaid meters

and service contracts to connect 1.2 million customers;

the AfDB subsequently gave approval for ENDE to

proceed with the procurement process for the systems

tender

▪ Began assisting ENDE to prepare tender documents to

install advanced metering infrastructure for medium- and

high-voltage customers as part of the World Bank’s

revenue protection program that will lead to 200,000

connections in Angola

▪ Worked with EGENCO’s risk management team to

design a Business Continuity Management System (BCMS) and Business Continuity Management Plan (BCMP)

as part of the response to the impact of COVID-19 on its operations as well as a Business Contingency Plan

(BCP) for COVID-19; all documents are with the EGENCO executive for review

▪ Progressed to the final stage of the human-centered design (HCD) process with the Mozambican utility, EDM,

to improve customer engagement and management, which resulted in the development of three key solutions

to be piloted and rolled out to benefit new customers being connected. The roadmap for implementation has

been approved by three key board members and is currently before the full BoD for approval

▪ Completed assistance to ZESCO in two key areas: i) project performance monitoring and evaluation (M&E)

process and ii) transmission and ancillary pricing methodologies. The M&E process will improve ZESCO’s

ability to deliver projects on time and budget and the second will improve ZESCO’s commercial performance

through efficient and robust pricing


ANGOLA

▪ ENDE Electrification Assistance

SAEP is assisting Angola’s electricity distribution company, ENDE, to develop and implement internal systems

and processes required to install over 1.2 million prepaid meters effectively and efficiently in the coming four

years under the AfDB ESEEP program. To support ENDE in reaching its electrification targets, SAEP is

working with the ENDE PIU by providing technical advisory services and on-the-job training to prepare the

required tender packages. In Q1, SAEP completed the majority of ToRs for the prepaid metering component

and the revenue protection component of the loan. With regard to the latter, a significant milestone was

achieved when the AfDB gave a No Objection for the prequalification stage of the revenue protection tender

to commence. Accordingly, ENDE published the invitation to respond and has received a significant number of

50 responses. On 30 December 2020, a virtual requalification meeting was held with 45 companies expressing

interest to bid. ENDE will respond to questions raised during the meeting in writing and participants will then

submit their EoI by 19 January 2021. The bidding documents for the procurement of prepaid meter

installations was submitted to the Bank at the end of December 2020 and ENDE is awaiting feedback. ENDE’s

Strategic Planning and Control Director, Isequiel Manuel, has expressed his appreciation for SAEP’s support

and welcomed further assistance on the next procurement phase, which entails evaluation of tender

submissions.

▪ World Bank’s Energy Sector Improvement Program

SAEP is assisting ENDE under the World Bank’s USD $417 million Projecto de Melhoria do Sector de Electricidade

(ESIP) electricity program, of which USD $250 million is allocated to ENDE to expand access to electricity and

improve revenue collection. The project will result in approximately 200 thousand connections of high value

customers. ENDE has requested SAEP support in preparing the bidding documents for the revenue protection

component of the program. The loan documents are expected to be signed in January 2021; at which time the

procurement processes can commence. In anticipation of the loan approvals, OC2 started to prepare the draft

specifications document for the revenue protection program in Q1 and in December 2020, met with ENDE’s

Commercial, IT and Planning departments to discuss these and review ENDE’s decisions regarding the

proposed revenue protection solutions (related to the advanced metering infrastructure). In Q2, SAEP will

support ENDE to finalize the ToR and bidding documents to be submitted to the World Bank for No

Objection.

OC2 Top Achievements and Results

▪ Provided ground-breaking assistance to

EGENCO and EDM by developing business

continuity and contingency plans to address

disasters such as COVID-19

▪ Through the HCD process, developed key

solutions for better customer management

in coordination with EDM to be approved

by the EDM Board for piloting

▪ Attained a key milestone with the

successful issuance of the specific

procurement notice for the systems tender

to improve ENDE’s fraud and revenue

protection management capabilities

▪ Successfully completed the project

performance assistance for ZESCO to

improve the utility’s project planning and

implementation and capital budgeting

▪ On-grid activities in Mozambique with EDM

resulted in 64,191 connections in Q1


MALAWI

▪ Support Assessment of Impacts and Contingency Planning for EGENCO (COVID-19 Support

Activity)

As part of the response to the impact of COVID-19, SAEP is working with EGENCO’s risk management team

to design and implement a BCMS, a BCM Policy and BCMP. Concurrently, the BCP for COVID-19 has also

been developed, incorporating EGENCO’s initial interventions into a comprehensive plan. The process started

in Q4 of Year 3 and has now, in Q1 of Year 4, reached the final stage of the EGENCO Executive Management

approval, subsequent to which, EGENCO’s risk management team will seek approval from the Board. The

success of the assistance was continually supported by EGENCO CEO, William Liabunya, who has been

closely monitoring the process whilst expressing gratitude to SAEP for the value-added support. Once the

BCMS and the BCM Policy have been adopted and incorporated, the related training and onboarding program,

also prepared by SAEP, will be rolled out. The final stage of SAEP involvement will be to provide technical

support to EGENCO in preparation for the first disaster scenario drill, expected to take place during the next

quarter. The adoption of these plans will better EGENCO’s risk response process to a range of impacts

including pandemics, severe climate impacts on water supply as well as those impacting the utility’s macro-

economic situation.

▪ EGENCO Strategic Plan M&E and HR Performance Review

SAEP is supporting EGENCO in two further areas: i) evaluating the sustainability of the M&E process initially

developed by SAEP in 2019 and ii) expanding the M&E process to include the development of Key

Performance Indicators (KPIs) for solar projects that EGENCO has recently commissioned (1.6 MW and 150

MW solar to be developed over the next five years). SAEP successfully assisted EGENCO to complement the

performance management capability within the utility by defining 10 KPIs and developing a Balanced Scorecard

(BSC) to monitor and evaluate performance of the solar generation, which focused primarily on the

development phase of the solar plants. EGENCO CEO, William Liabunya, complimented his staff and SAEP for

the excellent work and stated that a focused performance management culture within EGENCO will not only

benefit the utility, but also Malawi and its people.

SAEP has also been supporting EGENCO in the development of a BSC related to the performance of the HR

Department. SAEP began a follow-up assessment in FY3 Q2 to evaluate EGENCO’s application of the

performance metrics and to promote sustainability of the processes. SAEP HR Consultant, Erik Spurgin,

submitted a draft BSC tool to assess the progress of EGENCO in building the institutional HR capacity. This

resulted in SAEP’s initial assessment of the HR BSC, which indicated additional data was required. In Q1, Mr.

Spurgin, together with OC2, held a virtual meeting with Mr. Liabunya and the Executive Director of Human

Resources (HR) and Administration, Mr. Hannison Banda, to discuss how best EGENCO can finalize the

compilation of the required documents before the final evaluation. It was agreed that EGENCO would

conduct a self-assessment in FY21 Q2 for SAEP’s review, which would then be rolled out to the EGENCO

personnel.

MOZAMBIQUE

▪ Operationalization of EDM’s Electrification Management Unit (EMU)

In 2019, SAEP assisted EDM to design and set up an EMU. The EMU will be a delivery unit, with the sole

purpose of ensuring Mozambique’s electrification program is well managed, planned and implemented in a

cost-efficient and sustainable manner. The aim of the successful operationalization of the EMU is to connect an

anticipated 300,000 new customers annually. Since then, the EMU has been operational. Based on SAEP’s

assistance, the World Bank agreed to fund the staffing of key positions in planning and procurement. In

October 2020, SAEP conducted meetings with the EMU team to review and assess the performance of the

EMU in accordance with the processes and procedures developed by SAEP regarding planning, project

management, financial management and procurement. The assessment concluded that the EMU has

successfully adopted these processes. The next step involves reaching out to the regional delegations to fully

integrate and coordinate the EMU’s processes throughout the utility’s electrification activities.

▪ Helping EDM Improve Customer Relationship Management Through HCD

SAEP is implementing an HCD approach at EDM to improve customer centricity and facilitate new

connections in Mozambique. EDM has identified three key focus areas based on the HCD process to improve

customer engagement. These include i) improved community relations, with a focus on developing proactive

engagement with community leaders, ii) improved customer service management to better manage customer

expectations, and iii) a more comprehensive scheduling process so customers know when to expect their

connections. The next step and focus of Q1 was to incorporate these solutions into an implementation

roadmap to be rolled out across the EDM service area. SAEP met with USAID/Mozambique on 25 November

2020, to present the results of the Year 3 HCD activity as well as the proposed SOW of the second phase of

this activity: EDM HCD Customer Experience Implementation. SAEP OC2 Project Manager, Mr. Rui Alves, led

the meeting and presented the prepared overview, which comprehensively outlined the achievements and the

way forward. Subsequently, a major milestone was achieved with the presentation of the HCD solutions and

roadmap to the EDM BoD on 16 December 2020 to seek approval and to prepare the start of the

implementation process. It was agreed that SAEP would prepare a memo titled “Design and Implementation of

Customer Support Program and Adoption of HCD for EDM” summarizing the work concluded in Phase 1 and

its alignment with other initiatives, next steps, decisions and preparatory work required, including mobilizing

staff that currently have responsibilities related to community engagement work, communication, commercial

management and the EMU for projects planning and execution. Once the BoD has approved the memo,

implementation of the HCD solutions will commence in Q2.


▪ Support Assessment of Impacts and Contingency Planning for EDM (COVID-19 Support

Activity)

SAEP is assisting EDM to review and improve its emergency response and business continuity plans and help

address the challenges of the COVID-19 pandemic. SAEP assisted EDM in developing a robust planning

process financial model to address and take steps to mitigate the impact of COVID-19 on its operations and

business performance. A key component of the assistance is the development of a cash flow model that

contains a forecast of EDM's financial availability (revenue generation in the coming periods vs. expenses). The

model was applied under three scenarios: continuation of the current COVID-19 situation; improvement in

the COVID-19 situation; and deterioration in the COVID-19 situation. The results provide EDM with first-of-

a-kind insight into the impact on its financial position and budget. In addition, SAEP completed the Business

Continuity Plan. The plan and the financial model were presented to the EDM COVID-19 Task Force on 21

December 2020. The Finance Department will now integrate the model into its financial planning system.

ZAMBIA

▪ Technical Assistance to ZESCO to Improve the Utility’s Performance

In Q1, SAEP provided targeted assistance to ZESCO aimed at improving the utility’s performance. The M&E

support is focused on enhancing ZESCO’s management and execution of capital-intensive projects to increase

efficiency and lower costs. The transmission and ancillary pricing assistance focused on the efficient use of

resources and ensuring cost recovery.

o Project Management M&E Support

Based on SAEP’s initial discussions with ZESCO management, it was clear that ZESCO’s M&E

processes related to project management performance needed to be improved. Although ZESCO

had documentation for all aspects of managing project development, which were prepared by SAEP in

March 2019, ZESCO had not fully implemented these and required a robust program to guide

ZESCO to manage, coordinate, execute and report on project results to all internal and external

stakeholders. Accordingly, the goal of this project was to assist ZESCO in developing an M&E process

to drive project management performance. The project commenced in October 2019 and was

completed in November 2020. Based on interactions with ZESCO stakeholders from each key

department, SAEP finalized the development of KPIs and BSC templates in Q1 to be used for project

performance assessments. With these templates, ZESCO conducted the first ever assessment of a

sample of six projects encompassing generation, transmission and distribution. In summary, a very

satisfactory result was achieved with 83.3% overall compliance and with two out of six projects being

100% compliant. Given this accomplishment, SAEP has recommended that the implementation of the

project KPIs and BSC needs to be integrated into ZESCO’s performance management process and

clear responsibilities need to be established for this process to be sustainable. The result will be

efficient project planning and development and maximized allocation of, and return on, capital. SAEP

concluded its assistance to ZESCO and shared a final report summarizing the outcomes, results

achieved and lessons learned with the utility.

o Transmission and Ancillary Pricing

During Q1, SAEP completed this assistance to ZESCO. Based on the transmission methodology

developed previously, SAEP developed a transmission pricing model that provides ZESCO with all the

key tools for conducting various pricing calculations. On 24 November 2020, the SAEP Advisor to

ZESCO, Garth Broome, ran a virtual workshop on financial modelling of transmission prices attended

by 14 ZESCO staff from the transmission, system operations, accounting and finance departments.

The workshop provided training on the data structures and end-to-end calculations involved in

calculating the transmission prices based on SAEP’s recommended methodology. The workshop

resulted in the transfer of the model to ZESCO for application and further development. The

methodology and model provided give ZESCO the capability to efficiently price its service as the

power sector evolves to an open access system. A final report is now under development which

provides a summary of outcomes, recommendations and lessons learned.

SAEP also completed the methodology and financial modelling of relevant ancillary services in this

quarter. Training was provided through a (virtual) workshop held on 22 December 2020, specifically

targeting the methodology for procuring ancillary services and the calculations required to estimate

the cost of services where they are not sourced through open tender. The presentation worked

through all the recommendations of the Ancillary Services Pricing Methodology report and all the

calculations in the financial model. The methodology and model will now be “owned” by the ZESCO

System Operator and gives the System Operator the necessary capabilities to efficiently source and

charge for the services provided as the Zambian power sector evolves into a more competitive

environment. This will be a key consideration when the System Operator license is renewed in 2021.

A final report is also under development and will be finalized in Q2.



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


Y4.02.03.03.MWI EGENCO Strategic Plan and HR Performance Review

Wayne Mikutowicz, Erik Spurgin

04/01/2020-03/31/2021

Continuation from Y3

OC5 • Report In progress: SAEP held a virtual meeting with EGENCO CEO and the Executive Director of

Human Resources and



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


Administration, to discuss how best EGENCO can finalize the compilation of

the required documents before the final evaluation. It was agreed that

EGENCO would conduct a self-assessment in FYQ2, which would then be

reviewed by SAEP and then rolled out to the EGENCO personnel.

Y4.02.03.04.ZMB* ZESCO Transmission Ancillary Pricing

Methodology

Wayne Mikutowicz,

Garth Broome

1/6/2020 - 12/15/2020 01/13/2021


N/A • Ancillary Services Diagnosis (Report),

Workshops with Stakeholders,

• Data Analysis

(Report), Ancillary Service Cost

Methodology,

• Development of a financial model

for Ancillary services,

• Training to

ZESCO Personnel and model validation

through training session,

• Draft and Final

reports for

Ancillary Services

Pricing.

In progress: SAEP completed assistance to ZESCO, encompassing the

methodology and financial modelling of relevant Ancillary services. Training

was provided through a (virtual) workshop held on 22 December 2020,

focused on the

methodology for procuring ancillary services, and the calculations required to

estimate the cost of services where they are not sourced through open

tender. A final report is currently under development.

Y4.02.03.05.ZMB* ZESCO Transmission

Services Pricing

Wayne Mikutowicz,

Garth Broome

1/15/2020 - 12/15/2020

01/13/2021


N/A • Data Assessment

Report,

Methodology for

Estimating Tx

Costs and

allocation, and

wheeling charges;

Training, Financial

Model for Tx

costs

In progress: SAEP completed assistance to

ZESCO. On 24 November 2020, SAEP conducted a virtual workshop on

financial modelling of transmission prices,

attended by 14 ZESCO

staff from the transmission, system operations, accounting, and finance departments. The

workshop provided training in the data structures and end-to-end

calculations involved in calculating the transmission prices based on SAEP’s

recommended methodology, as well as the basis for transfer of the

model to ZESCO for application and further development. A final

report is currently under development.

Y3.C19.02.03.02.MWI* EGENCO (COVID-

19) Support Assessment of Impacts and

Contingency Planning

Izak du Plessis,

Tea Mihic

7/27/2020 -

11/30/2020 03/31/2021

EGENCO

request

Continuation

from Year 3 • Business

Continuity Management System (BCMS)

• Business Contingency Plan (BCP)

• Final Report

In progress: The SAEP

and EGENCO project team reached the final stage of the development

of the Business Continuity Management (BCM) System, BCM Policy and

the Business Continuity Management Plan (BCMP), now at the EGENCO Executive Management

approval stage, after which it will be presented to the EGENCO Board for

acceptance. Concurrently, the Business Contingency Plan (BCP) for COVID-19

has been developed, incorporating the initial interventions into a

comprehensive plan, also under the Executive Management Review.



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


Y3.C19.02.03.05.MOZ* EDM Support for Improving the Level of Preparedness

and Response Capacity During and Post the

Pandemic (COVID-19)

Wayne Mikutowicz, Tea Mihic

8/3/2020 - 11/20/2020 02/12/2021

EDM request Continuation from Year 3

• Workshop and

final report

In progress: SAEP supported EDM in compilation of the Business

Continuity Plan. Additionally, SAEP focused on the key component of

the assistance - the development of a cash flow model, which contains a

forecast of EDM's financial availability (revenue generation in the coming periods vs. expenses). The

model was applied under 3 scenarios and its results will provide EDM with an

insight into the impact on its financial position. The plan and the financial

model were presented to the EDM COVID Task force in December 2020,

which was received with significant interest. The EDM Finance department

will now integrate the model into its financial planning system.

Y4.02.09.01.ANG* ENDE bid evaluation support for AfDB program

Wayne Mikutowicz,

Rui Alves, Tea

Mihic

10/1/2020 - 5/31/2021 08/31/2021


(originally

requested by the

Counterpart)

N/A • Bidder evaluation report

• Final close-out

report – summary, lessons Report

• Metering bidder prequalification report

• Metering bidder evaluation reports

• Revenue protection Prequalification

report

• Revenue

protection learned

In progress: SAEP supported ENDE to complete the majority of

TORs for the pre-paid metering component and the revenue protection

component of the loan. ENDE also received a decision by the AfDB to proceed with the first

phase of the procurement process for the systems component (revenue

protection). AfDB granted No Objection for the Pre-Qualification stage.

Accordingly, ENDE published the invitation to respond and has received

50 responses. A Pre-Qualification meeting was held (virtually) on 30 December 2020 which was

attended by a high number of 45 companies expressing interest.

Procurement process is moving forward as planned.

Y4.02.09.03.ANG* Support to ENDE for the World Bank Program

Tea Mihic, Rui Alves

8/17/2020 - 6/30/2021

ENDE Request

NA • Report

• Procurement plan

• Bidding documents

• Capacity building

for the PIU team

In progress: SAEP commenced assistance to ENDE in the development

of the bid documents for the World Bank Electricity Sector Improvement

Project that will lead to 200,000 connections in Angola, involving technical

workshops with ENDE

teams, aimed at preparing the technical specifications

for the revenue protection component tender (Subcomponent 1.2: Revenue protection

program).

Y4.02.09.04.MOZ* EDM EMU program

implementation support continued

Wayne

Mikutowicz, Rui Alves

8/3/2020 -

9/3/2021

EDM Request Continuation

from Y3

• Capacity building

plan

• Implementation of functional

processes

• Quality assurance reviews

• Biweekly report status updates on progress

• Final close-out report

In progress: SAEP

conducted meetings with the EDM EMU team to review and assess the

performance of the EMU in accordance with the processes and procedures developed by SAEP

regarding planning, project management, financial management and

procurement. The assessment concluded that the EMU has successfully



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


adopted these processes. The next steps of the assistance are to reach out

to the regional delegations to fully integrate and coordinate the EMU

processes in the electrification activities company wide.

Y4.02.09.05.MOZ EDM HCD customer experience

implementation

Wayne Mikutowicz, TBD (from

Deloitte Mozambique

team)

11/2/2020 - 4/30/2021

EDM Request OC5 • Report

• Pilot

development and evaluation report (results, conclusions,

review of the solutions, recommendations

for the roll-out)

• Set-up a task force, an

implementation and change management plan

and governance

• Roll out program designed and

approved by the BoD. task force capacitated to

conduct a training program at all Delegations

• Final report –

summary of

activities and

results achieved.;

lessons learned

and way forward

In progress: Progressed to the final stage of the HCD development

process with EDM, which resulted in development of three key solutions to be

piloted and then rolled out for the benefit of all new customers being

connected. The roadmap for implementation has been approved by 3 key

Board members and is

now currently before the full Board of Directors for approval



2.3 OUTCOME 3: IMPROVED REGIONAL HARMONIZATION AND

CROSS-BORDER TRADE


During Q1 of FY21, the SAEP Outcome 3 (OC3) team

continued to work with regional and national-level

stakeholders to improve regional harmonization and cross-

border coordination with increased focus on Angola. Key

stakeholder support activities under OC3 for this quarter

included:

▪ Continued support to Angola’s transmission company,

RNT, to operationalize a PIU to manage the

development of the AfDB-funded 343 km 400 kV

transmission line that will interconnect central and

southern Angola and continued to advise and guide RNT

in working with the AfDB to manage the project with

loan value of USD $204.5 million

▪ Supported the Temane Transmission Project (TTP) in

Mozambique to advance procurement activities related

to the Request for Bids (RFB) for the overhead line lots,

which are now at various stages of approval

▪ Continued advisory support to SAPP as their consultant’s

advance work on the Regional Transmission

Infrastructure Funding Facility (RTIFF) by taking part in

SAPP’s workshops and providing comments on the work

produced by the consultants

▪ Continued support to the Zambian utility ZESCO to

improve system operations to enable the optimization of

power production

▪ Completed training to prepare ESCOM Malawi control engineers to operate in an interconnected system


ANGOLA

▪ Operationalizing RNT’s PIU to Advance the ESEEP Phase I Transmission Project

During this quarter, SAEP continued to support Angola’s transmission company, RNT, as they work to

advance new transmission infrastructure projects. SAEP focused on supporting RNT to operationalize the

established PIU. The successful functioning of the PIU is critical to help RNT to manage the development of

the AfDB-funded Angolan Central–South transmission system between Huambo and Lubango.

Key events and outcomes from Q1 are:

o Assisted RNT PIU with the development of an internal actions and milestones tracker, which is now

being fully utilized by the RNT PIU

o Assisted RNT PIU with the development of the Responsible, Accountable, Consulted and Informed

(RACI) matrix

o Assisted RNT PIU with the restructuring and reorganizing of the RNT PIU data room. This activity

will continue into Q2 with focus on actual training to capacitate the RNT PIU members to utilize the

data room and Office 365 software for project management and PIU activities

o Assisted RNT PIU to update the risks and issues registers for all the different PIU sections

o Developed a skills gap assessment study focused on assessing the current RNT PIU Engineering

function to identify gaps which will require capacity building. Part of this process included conducting

individual interviews with the RNT engineers. This study will be concluded by mid-February 2021

with a final assessment report and workshop

o Appointed the SAEP embedded advisor, Mr. Joao Castro, who is deployed full time within the RNT

PIU to provide assistance to the project coordinator and the entire RNT PIU

o Conducted a virtual change management workshop with the RNT PIU members and other RNT staff

members on 5 November 2020. The workshop, attended by 30 RNT members, was three hours

long, with high levels of interaction where the RNT PIU team communicated their frustrations,

uncertainties and achievements. SAEP is currently drafting a training report which will be finalized by

end of January 2021

o Assisted the RNT procurement team to:

‒ Review the evaluation report for the EoI for the recruitment of the Resettlement Action Plan

(RAP) consultant after receiving the updated report from the RNT RAP Evaluation Committee.

The report was submitted to the AfDB for No Objection on 10 December 2020

‒ Evaluate 31 prequalification documents for the EPC contractor. During this quarter, the RNT

evaluation team submitted their evaluations to SAEP to review and make sure that all guidelines

and scoring were done according to the AfDB’s standards. The RNT Evaluation Committee is

currently drafting the evaluation report, which is to be submitted to AfDB by end January 2021

‒ Amend the procurement plan and propose to the AfDB that project vehicles be locally and

competitively sourced, wherein a request for quotations would be evaluated. The original intent

to use the United Nations Development Portal (UNDP) platform is no longer feasible as the

UNDP does not offer services for single procurements

‒ Kick-start the procurement process for the purchase of IT equipment


▪ Supported Angola’s transmission company,

RNT, to advance critical procurement

processes, including evaluating 31 technical

proposals received from companies for the

prequalification submissions for the

procurement of an Engineering

Procurement and Construction (EPC)

consultant

▪ Finalized training for the ESCOM Control

Center engineers to prepare them to

operate in an interconnected system once

the 400 kV Malawi–Mozambique

interconnector is completed

▪ Finalized workshops with ZESCO on

private financing options for transmission

line projects

▪ Supported the TTP to advance

procurement of an EPC contractor for all

six lots, finalize the RAP consultation

processes and recruit PMO staff. The

project reached FC on 10 December 2020


‒ Revise and conclude the RFP and ToR for an Owner’s Engineer. The documents were submitted

to the AfDB for No Objection on 26 October 2020. RNT is also still waiting for No Objection

from AfDB on the resubmitted evaluation report (recommending a relaunch of the bidding

process to only the five shortlisted companies) which was submitted on 25 September 2020

‒ Design and implement an administration procedures guideline document for the purchase of

goods and services consisting of three administrative steps for approval by the RNT Board

‒ Update the SOW for the RNT support, to increase SAEP assistance until RNT’s newly approved

permanent consultants are on board. This included updating the LOE for all of the SAEP

specialists for a period of three months. This came after a request was made by the RNT PIU in a

meeting with USAID and SAEP on 17 December 2020, and consultations with SAEP and the

AfDB. RNT will hire a full-time Procurement Specialist, Senior Environmental and Social Expert,

Senior Financial Management Expert and Project Management Expert. The recruitment process

will take about three months, after which, SAEP will revert back to its advisory role

MALAWI

▪ ESCOM Operations and Maintenance Training/Malawi–Mozambique Interconnector

SAEP completed training for ESCOM's control engineers on operating in an interconnected environment on 8

October 2020. The specific training topic was on SAPP’s operating guidelines and other SAPP documents that

needed to be complied with. ESCOM is now in the implementation phase of the Mozambique–Malawi Regional

Interconnector Project, a 1,000 MW capacity, 400 kV project that will interconnect the transmission systems

in Mozambique and Malawi, allowing the two countries to engage in bilateral and regional power trade in the

SAPP. The Project Implementation Manual (PIM) was concluded and approved at the end of July 2020, which

means that the project has officially reached FC. ESCOM Malawi will be submitting an FC claim letter of

confirmation as to the role and impact SAEP played on the project through its capacity building efforts. Next

steps will include setting up meetings with some of the SAPP operating utilities such as EDM, to expose the

ESCOM engineers to practical operations in an interconnected system.

MOZAMBIQUE

▪ Temane Transmission Project

The TTP reached FC on 10 December 2020. Following the issuance of the World Bank, Norwegian Trust

Fund and the AfDB effectiveness letters, the Islamic Development Bank (IsDB) issued its effectiveness letter on

27 November 2020. OPEC Fund for International Development (OFID) effectiveness was achieved on 7

December 2020. The USD $542 million TTP is designed to evacuate power from the 450 MW Temane Power

Plant located in the northern part of Inhambane Province to Maputo, the nation’s capital of 1.2 million people

located in the south of the country, so as to service households, businesses and industrial concerns as well as

on-route communities and customers. Construction of the 400 kV TTP transmission line with a capacity of

900 MW totaling 560 km will be completed by 2023 and is the first phase of the Mozambique Integrated

Transmission Backbone System Project. SAEP supported Mozambique’s national utility, EDM, to bring the TTP

to FC by providing an embedded advisor to deliver long-term organizational and technical support, who as of

December 2020, has been permanently recruited by TTP as a full-time project coordinator. In Q1, SAEP

assisted the TTP team to advance various procurement activities:

○ Procurement of an EPC contractor for the various Lots1 is almost finalized. Evaluations for Lots 1, 2,

3, 5 and 6 included comments and clarification requests from the World Bank. The evaluation reports

for Lots 5 and 6 were submitted to the IsDB for approval on 24 June 2020, and received No

Objection on 12 July 2020 (Lot 5) and 18 July 2020 (Lot 6). Lot 3 received No Objection in

December 2020, and the TTP team is currently addressing comments to Lots 1 and 2. The target for

contract signature is end of February 2021

○ The third revision of the RFB for the construction of the resettlement houses received No Objection

on 21 October 2020, and the RFB was published on 27 October 2020. The bid process is currently

still underway and should be finalized by end of January 2021

○ The RAP implementation process started with the drafting of the compensation agreements and the

procurement process for the appointment of a consultant to supervise the construction of the

resettlement houses. The field activities for the RAP Implementation process, which included

community engagements, were concluded in December 2020

○ The procurement of an automated financial system is ongoing. The RFB was published on 29 October

2020. In total, only four bids were received with only one bidder presenting a valid bid. A bid

evaluation report was prepared and sent to WB with the recommendation to re-advertise the RFB

○ Additionally, the TTP team is currently reviewing close to 1,000 CVs received for the recruitment of

the full PMO staff, which include junior engineers, specialists and a senior construction manager. The

expected target date for concluding the recruitment is end of January 2021

1 Lot 1: plant design, supply and installation, testing and commissioning of a new 400/110 kV AIS substation in Vilanculos, a 400/275 kV

substation in Chibuto, a 400/66 kV substation in Matalane and extension of the 400 kV Maputo substation; Lot 2: plant design, supply and installation, testing and commissioning of SVC / STATCOM for TTP; Lot 3: design, supply, delivery to site, site supervision and installation,

testing, commissioning and handing over of 400 kV line and bus reactors and 400 kV power transformers for TTP; Lot 6: construction of the 400 kV Chibuto to Maputo substation line


REGIONAL

▪ Support to SADC

o SADC Energy Thematic Group Virtual Meeting and SAEP Advisory Committee Meeting

During Q1, SAEP participated in the SADC Energy Thematic Group (ETG) virtual meeting on 15

October 2020 and presented a status update on progress made since the previous ETG meeting in

May 2020. The presentation was well received and the regional institutions, SAPP, RERA and

SACREEE, acknowledged and expressed their appreciation of support received from SAEP. Following

the ETG Meeting, SAEP hosted the SAEP Advisory Committee session. The session was well

attended, and SAEP presented its learning guides initiative, which will focus on sharing lessons learned

by disseminating training materials and reports throughout the SADC region.

▪ Support to SAPP

o The Regional Transmission Infrastructure Funding Facility (RTIFF)

SAEP is advising and supporting SAPP as their consultant, Pegasys (who is supported by Zutari and

Cliffe Dekker Hofmeyr), is advancing the development of the RTIFF – a priority SAPP initiative to

help address funding challenges for transmission interconnectors across the SADC region. During

Q1, SAEP continued to assist and advise SAPP by reviewing the RTIFF framing paper, a final report

and the stakeholder engagement presentations (to introduce and brief stakeholders on the concept of

RTIFF and work done to date) developed by their consultants. SAEP also submitted advisory notes to

SAPP, providing technical and financial guidelines as to the key focus areas of the RTIFF and the

rollout roadmap to obtain buy-in from the SADC member states. SAEP will continue to take part as

advisors in the weekly meetings with SAPP, the consultants, World Bank and SADC.

o SAPP IPP Guidelines

In November 2020, SAEP met with the SAPP executives to discuss technical and regulatory support

to SAPP in the rollout of new access guidelines. SAEP previously supported SAPP with the

development of new access guidelines for applicants that want to join SAPP, and these were

presented in August 2019 during the SAPP Planning Sub-Committee Meeting. The agreement

between both parties was that SAPP will develop a presentation in Q2 which will be shared with a

small group of IPPs (which SAPP would identify) to test adequacy and usefulness of the guidelines,

after which, both the guidelines and presentation would be posted on the SAPP website as an aid to

prospective members. This entire process should be finalized and concluded around April 2021.

ZAMBIA

▪ Transmission Financing Options for ZESCO

The ZESCO Financing of Transmission Line Projects Workshop took place virtually on 27 October 2020.

SAEP supported ZESCO to identify and solicit transmission financing options. The aim of this activity forms

part of the greater vision to unlock funding/financing for transmission line projects, especially for Zambia and

the Zambia–Tanzania interconnector, which will essentially be the first link to the East African Power Pool.

Currently SAEP is finalizing the close-out reports.

OTHER ACTIVITIES

▪ Transmission PMO Manual

During Q1, SAEP finalized the first draft of the Transmission PMO Manual, which was developed with inputs

from SAEP specialists. The manual includes a chapter detailing different project management methodologies

and their applications; a project management framework and its applicability to the SAEP PMO Handbook

audience, and lastly, lessons learned from SAEP engagements with Southern African utilities. The purpose of

this manual is to guide regional utilities to establish PMO units to advance transmission projects. The toolkit

also highlights SAEP’s impact and depth of experience in working on transmission projects across the region.

Ultimately, it will be shared with other Power Africa implementing agencies in support of Power Africa's

Transmission Roadmap. The outline of the manual was also presented during the SAEP Advisory Committee

meeting held in October 2020, as part of the SAEP Learning Guides and was received with a lot of interest

from the committee members. The manual is currently under final review by USAID and should be concluded

and distributed publicly in Q3.



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


Y4.03.01.02.REG Participating in SADC ETG meetings and SAEP

Advisory Committee

Willem Theron

9/30/2020 - 9/30/2021

SAEP Initiative OC5 & Y3.03.01.02.REG

• Notes of meetings every six months

In progress These are bi-annual meetings and as such, SAEP will still

continue to attend

Y4.03.02.01.REG Maintain and

enhance a generic system optimization model

for SAPP

Keith Katyora,

Michael Barry

10/1/2020 -

9/30/2021

SAEP Initiative Y2.03.05.02.MWI,

Y3.03.05.02.MWI • Production

optimization model updates

• Close-out report

with any updates provided

In progress: In

September 2020, SAEP presented to the PSC members the General

Production Optimization Tool which was initially



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


developed for ESCOM, Malawi, but now has been adapted into a generic

model which could be easily implemented by any of the SAPP member

states. Both the model and presentation were well received by the SAPP

Executives, and it was agreed that SAPP would then start with the rollout of the model. This tool

will also include a user manual to guide utility planning engineers to use

and understand the model

Y4.03.03.01.MWI Prepare ESCOM

personnel for operating in an interconnected

system by

introducing them to the SAPP CC and other SAPP

utilities operating in the interconnected system

Mark Sims 10/1/2020 -

9/30/2021

ESCOM LOC OC5 &

Y3.03.03.01.MWI

• Meeting notes


• Training/close-out reports

In progress: SAEP

developed training material to capacitate ESCOM’s personnel to

operate in an

interconnected system, which were presented in September and October

2020. The training was catered for ESCOM’s control engineers on

operating in an interconnected environment, and

currently the post training reports are being compiled for submission

to PMO to close-out the training. Next steps will now include setting up meetings with the SAPP

Coordination Centre

Y4.03.04.01.REG Support SAPP in

the rollout of new access guidelines

Willem

Theron or Mark Sims

9/30/2020 -

10/1/2021

SAPP Request

and LOC

Y3.03.04.01.REG

Y2.03.04.01.REG

• Presentation

materials to support SAPP in promoting and

marketing the

new access guidelines

In progress: In

November 2020, SAEP held a meeting with the SAPP Executives to discuss technical and

regulatory support to SAPP in the rollout of new access guidelines.

The agreement between both parties was that SAPP, in the next

quarter (Q2), will develop a presentation that would be shared

with a small group of IPPs (which SAPP would identify) to test adequacy

and usefulness of the guidelines, after which, both the guidelines and presentation would then

be posted on the SAPP website as an aid to prospective members.

Y4.03.05.01.ANG* Assist RNT to operationalize a PIU for the

Central–Southern

400 kV project

Willem Theron

10/1/2020 - 9/30/2021

USAID, RNT and AfDB request

Y3.03.05.01.ANG • 100- and 365-day rolling plan for

PIU

• PIU

operationalization

documents, including comments on

procurement review reports created by RNT


• Risk, issues and action log

• Presentations on internal workshops and

training to support RNT PIU

• Biweekly and

quarterly progress reports

In progress: SAEP continues to offer assistance to RNT as they

operationalize their PIU.

In December 2020, the SOW was amended to

include, temporarily, (for the next three months only) more hands-on

assistance to the RNT PIU.

Y4.03.05.03.ANG* Embedded Advisor

to support RNT to

Embedded

Advisor

10/1/2020 -

9/30/2021

RNT request Y3.03.05.01.ANG • Biweekly,

quarterly and

In progress: Embedded

Advisor continues to



Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies


manage the ESEEP I Project and the operationalization

of the RNT PIU, working closely with the RNT

Project Coordinator

weekly (internal) reports

• Meeting

coordination including meeting agendas,

interpretations and meeting minutes

• Progress updates to OC3 Lead and Deputy on all

assistance given in terms of operationalization

of the RNT PIU

• Coordination for the SAEP team for

Angola missions

provide assistance to the RNT PIU across all departments, and also

working closely with the RNT PIU Project Coordinator

Y4.03.05.04.MOZ* Embedded Project Coordinator in

EDM to manage the Temane Transmission

Project and its interface to the Temane 450 MW

IPP project

Bruno Batista 9/30/2020 - 12/31/2020

03/31/2021

EDM Request Y3.03.05.03.MOZ

Y2.03.05.04.MOZ

• Assistance to TTP team with all bid

openings for all Lots

• Quarterly

progress reports

• Financial close achieved

• Assist TTP with the recruitment of additional project

resources

In progress: WB issued a No Objection to the

direct selection of Bruno Batista, the Embedded Project Coordinator, as

the official project coordinator for the TTP project from 1 November

2020 to 31 December 2023. Bruno will, however, continue to assist SAEP as and when

needed

Y4.03.06.01.REG* Assistance to SAPP

for Regional Transmission Infrastructure Fund

(RTIFF)

Willem

Theron, Keith Katyora and

Financial

Advisors

10/1/2020 -

9/30/2021

SAPP and

World Bank request

Y2.03.06.01.REG

Y3.03.06.01.REG

• Advisory notes to

SAPP

• Feedback reports to stakeholders

involved in the project (as requested by

SAPP)

In progress: SAEP

continued to assist and advise SAPP by reviewing the RTIFF framing paper,

draft final report, and the stakeholder engagement presentations (to introduce and brief

stakeholders on the concept of RTIFF and work done to date)

developed by their

consultants. SAEP also submitted advisory notes

to SAPP, providing technical and financial guidelines as to the key

focus areas of the RTIFF and the rollout roadmap in terms of getting buy-in

from the SADC member states. SAEP will continue to take part as advisors in the weekly meetings with

SAPP



2.4 OUTCOME 4: RENEWABLE ENERGY AND ENERGY

EFFICIENCY TECHNOLOGIES AND PRACTICES LOCALLY

DEMONSTRATED AND SCALED


In this quarter, the SAEP Outcome 4 (OC4) team continued to

work with government entities and counterparts in the private

sector to move forward activities, particularly in the off-grid

space. Key stakeholder support activities under OC4 for Q1 of

FY21 included:

▪ Collaborated with the Ministry of Natural Resources and

Energy (MNRE) in Eswatini in helping the country establish

an agency that will implement the National Energy

Efficiency Strategy and Action Plan (NEESAP). SAEP helped

conceptualize the agency, identify the appropriate entity for

embedding the agency, and determining its structure and

approaches for its financing. Through a series of

workshops, the approach for establishing the agency was

presented to energy sector stakeholders, including the

University of Eswatini, which is the targeted host

▪ Continued support to the Eswatini Water Supply

Corporation (EWSC) with the implementation of the

recommendations contained in the energy audit report

developed by SAEP in 2019. SAEP has selected a consultant

that will assist EWSC to implement two initiatives that

have been identified in the audit report, namely, the

establishment of the energy management system in line

with ISO 50001 and the assessment of the impact of

proposed operational changes on the continuity of water

supply

▪ Continued support to the Africa Clean Energy Technical

Assistance Facility (ACE-TAF) as they took the primary

support role for the Solar Industry Association of Zambia (SIAZ). The key activity of the quarter was the

revision of the customs handbook for use by customs officials to be better informed about solar products and

their identification to reduce issues with the applications of tax and duty exemptions at ports of entry

▪ Progressed on the fiscal exemptions work in Mozambique. SAEP worked with the BRILHO energy program to

develop the revised assumptions that will guide the revision of an econometric model that will enable the

government to make informed decisions on the impacts of the implementation of fiscal exemptions on the

economy

▪ Continued transaction assistance to the Government of Malawi as they navigate the development of the 350

MW Mpatamanga Hydropower Project. In the first quarter, SAEP assisted the government to navigate certain

technical discussions and retain legal support


ESWATINI

▪ Ministry Energy Efficiency Action Plan Support

After the finalization of the National Energy Efficiency Strategy and Action Plan (NEESAP) in Year 3, the MNRE

requested that SAEP assist them with conceptualizing the agency that would take charge of the

implementation of the NEESAP and, in effect, the energy efficiency policy. The ministry agreed that a steering

group be set up to oversee the establishment of a Sustainable Energy Agency (SEA). The consensus was also

that an existing entity – a research unit within the University of Eswatini (UNESWA) – be repurposed and

elevated to become an SEA. Throughout the quarter, SAEP co-facilitated multiple steering group meetings,

during which, the rationale, structure, funding and staffing of the SEA were discussed. In December 2020,

SAEP made a presentation to the UNESWA senior leadership and staff, who committed to provide their

comments on the proposed approach to establishing the SEA. In Q2, SAEP will work with the steering group

to develop the statutory instruments required to operationalize the SEA.

▪ EWSC Energy Efficiency Implementation Support

During the first quarter, SAEP continued to have regular meetings with the EWSC to receive updates on the

implementation of recommendations contained in the energy audit report that was produced by SAEP in Year

2. Beyond receiving regular updates on progress with implementing their internal initiatives, the key activity of

Q1 was the procurement of the services of a consultant to assist the EWSC with interventions in the energy

audit report that they cannot implement using internal resources. The consultant’s main task will be to train

EWSC’s energy efficiency team on the establishment of processes and procedures for the sustainable

implementation of an energy management system in line with ISO 50001. Another task for the consultant will

be assisting the EWSC to map their water network and work out an approach to simulate the impact of

changes in network configurations and settings on the continuity of water delivery. At the end of the quarter,

SAEP agreed to a scope of work with the preferred consultant and contracting processes had been initiated.

The consultant will be onboarded in January 2021 and thereafter, work will commence.


▪ Awarded the Madagascar Mini-Grid

Development Grant on 23 November

2020, which will unlock up to 5,200

connections. The three grant recipients

were announced during the event which

was attended by the Minister of Energy in

Madagascar

▪ Helped the MNRE in Eswatini and energy

sector stakeholders to conceptualize the

agency that will implement the NEESAP

and the energy efficiency policy in

Eswatini

▪ Completed a draft final report of the

JCM 60 MW Solar Plant integration into

the Malawi grid. The report is currently

undergoing internal reviews for approval

▪ Connected 15,221 households in Malawi

to solar power, of which, 14,459

connections were through the SHS Kick-

Starter grant program and connected

7,671 households in Mozambique and

18,193 households in Zambia to solar

power through ongoing support to SHS

companies


MADAGASCAR

▪ The Power Africa Madagascar Mini-Grid Development Grant

The Mini-Grid Development Grant was officially launched on 23 November 2020. The virtual launch event

was well attended and included participation from the rural electrification authority in Madagascar and the

Minister of Energy. The Minister expressed his gratitude for the intervention and the impact it will have on the

development of mini-grids in Madagascar. Three companies were selected as recipients – Autursys, Hydro

Ingenierie Etudes et Realisations (HIER), and Henri Fraise Fils (HFF). Two of the companies selected are building

PV based mini-grids, while the third is extending an existing hydro mini-grid to reach additional customers.

Jointly, they will provide an electricity connection to around 5,200 previously unelectrified households and

businesses. In Q2, SAEP will work with the companies to determine the type of technical assistance they

require to achieve their stated timelines.

▪ Assistance to Madagascar Industry Association (SIM) with Industrial Energy Efficiency Program

The SIM energy efficiency activity continued into Q1 from the previous year. The activity is a collaboration

with an industry association in Madagascar called SIM and entails three key components. The first component

is the selection of 10 companies to participate in an energy efficiency program. The second component is the

selection of energy audit companies to conduct energy audits at the facilities of the selected companies. The

third component is the identification of priority initiatives and assisting the companies to identify sources of

funding for the initiatives that require CAPEX. During the first quarter, SAEP drafted a strategy for the

implementation of the SIM energy efficiency program. The strategy includes the types of companies that will

most likely be the targets for selection as well as the systems that will yield the highest efficiency gains. SAEP

also developed guidelines for the selection of the 10 companies that will participate in the SIM energy

efficiency program. These guidelines have been incorporated into draft request for proposal documents that

will be sent out to SIM members. In January 2020, SAEP will engage SIM on the draft strategy and RFP

documentation and after their comments are incorporated into the documents, they will be released to their

member companies. It is anticipated that the 10 companies that will participate in the energy efficiency

program will be selected during the second quarter and the process of procuring the services of energy audit

firms will be initiated thereafter.

▪ Support to Solarland and AVOTRA with SHS

In an effort to utilize insights gained through SAEP’s willingness to pay survey and assessment of the SHS

market in the SAVA region, SAEP initiated a process of establishing a collaboration between Solarland, a solar

PV systems company, and AVOTRA, a rural agricultural cooperative based in Madagascar’s vanilla growing

region. The survey and the market assessment were triggered by AVOTRA’s desire to diversify their income

away from the sale of vanilla. The survey and market assessment revealed that the addressable market was too

small for it to be an attractive opportunity for AVOTRA but there was a potential benefit in partnering with

an existing SHS company. This activity stalled in the first quarter due to restructuring activities that Solarland

implemented in response to the negative effects of COVID-19 on their business. Solarland laid off their key

technical staff, including SAEP’s point of contact. At the end of the quarter, SAEP had not been able to

establish, through the company’s CEO, whether the activity remained a priority for their company at this time.

The main challenge was securing a meeting with the CEO, who had taken charge of all of the company’s key

activities. Another obstacle was an inability to establish communication with AVOTRA due to poor

communication channels. In Q2, SAEP will determine Solarland’s plans in relation to the activity and if they are

still keen on the activity, a trip will be planned to the SAVA region. The trip will take into account safety

considerations in the context of the COVID-19 pandemic and any movement restrictions imposed by the

Malagasy government.

MALAWI

▪ Variable Renewable Energy (vRE) Integration Training for ESCOM

SAEP continued to support ESCOM’s preparation for the integration of a significant amount of vRE into their

grid over the next few years, beginning in 2021. In Q1, SAEP concluded the training on network modelling and

simulations that had started in the last quarter of Year 3. This training was targeted at the system planning and

network operations staff who typically conduct load-flow and stability studies using the network model. The

training was well received. However, SAEP committed to providing ESCOM with an in-person refresher

course closer to the commissioning of the first solar PV plant in 2021. This commitment is dependent on

movement restrictions and the possibility of travel between Malawi and South Africa. During the quarter, the

consultant SAEP engaged to support ESCOM with vRE integration also submitted the deliverables for the

activity, including a report on the network’s readiness for the integration of the 60 MW JCM PV plant and

recommendations for the plant’s successful integration. The goal of this effort is to minimize disruptions to the

Malawi grid from vRE integration. SAEP is reviewing the deliverables and will discuss with ESCOM once

finalized.

▪ Malawi SHS Kick-Starter Program & SHS Operational Support

SAEP supported SHS companies, Zuwa and Vitalite, as they conducted their own agent-level sales force

effectiveness (SFE) training. The completion of the training was initially delayed by precautions that both

companies had to put in place to protect their workforce from COVID-19 infections. Zuwa also had to

implement a few measures in response to the financial impact of a slowdown in sales. SAEP will continue to

follow up with the two companies to monitor the training’s effectiveness and to give advice to the companies

if there is a need for refresher training. SAEP also commenced discussions with the Global Distributors

Collaboration (GDC) about developing a training program adapted from the SFE training curriculum that could

be rolled out across the continent. These discussions will be advanced in Q2. During the reporting period,

SAEP also continued to engage stakeholders about additional data sets that could be used to update the

Route-to-Market (RTM) tool; Energising Development (EnDev) directed SAEP to an affordability survey


conducted by the Malawian NGO, MAEVE, that could be considered for integration into the RTM tool.

Towards the end of the quarter, SHS players in Malawi brought it to SAEP’s attention that the Malawi Revenue

Authority (MRA) was imposing taxes on solar products that were previously exempted, which hindered the

importation of certain shipments. SAEP is working with the SHS companies to engage the authorities in

Malawi.

▪ 350 MW Mpatamanga Hydropower Project Support

SAEP continued to support the Mpatamanga Hydropower project after the release of the RFP for a project

sponsor to the prequalified bidder on 25 August 2020. The program kept abreast of progress with

developments related to the RFP during the quarter. SAEP is also supporting the procurement of additional

service providers to conduct further studies to verify the implications of technical solutions that have been

proposed to implement the project. Additionally, SAEP assisted the Government of Malawi to receive

continued legal assistance and to liaise with the consultant working on the environmental and social studies,

which are in the process of being finalized. Furthermore, SAEP had an initial call with the single buyer unit in

Malawi to brief them on what will be expected from them in relation to the project. The project is covered in

more detail in the transactions section of this report.

MOZAMBIQUE

▪ Implementation of Mozambique Fiscal Incentives for Solar Products to Improve Affordability

SAEP finalized an Implementation Roadmap that outlines the steps that should be taken for the

implementation of fiscal incentives in Mozambique. SAEP also continued with the revision of the econometric

model, which will be used to determine the impacts of the implementation of fiscal incentives for solar

products on the economy. During the quarter, SAEP worked on the assumptions for the model, including the

approach for calculating benefits and the increase in sales due to the uptake of the incentives. The assumptions

will be discussed with the Ministry of Mineral Resources and Energy (MIREME) for their input and acceptance.

In Q2, SAEP will move forward with the revision of the economic model in collaboration with BRILHO. SAEP

is also supporting a BRILHO-led pilot of fiscal incentives in Mozambique, which was sanctioned by MIREME.

SAEP is assisting BRILHO to scope the initiative. Lastly, SAEP has engaged SHS companies in Mozambique

extensively on the revision of the econometric study. Towards the end of the quarter, SAEP sent out a

questionnaire to the companies to solicit their input for the econometric model.

▪ Route-to-Market Tool Release

As part of ongoing efforts to promote the use of SAEP’s Route-to-Market (RTM) geospatial tools within the

off-grid sector, SAEP released updated data2 along with an instruction guide and a four-part series of pre-

recorded video demonstrations of the tool to SHS companies and mini-grid developers in Mozambique on 17

December 2020. This Version 5 of the RTM geospatial tool brings together geospatial data and techniques to

map population density, electrification and road infrastructure data, as well as newly available data on telecom

coverage/access across the country. The tool allows off-grid energy service providers to prioritize geographic

markets with the highest potential for expansion or deeper market penetration and thereby develop robust

RTM strategies. This tool is part of a portfolio of assistance SAEP provides to the off-grid sector in

Mozambique and is similar to the work that SAEP designed to support the off-grid sectors in Zambia and

Malawi. The addition of telecom coverage/access data in this iteration of the tool further supports the

identification of high potential regions/areas for future expansion that have adequate cellular coverage to

support the use of mobile money to make mobile payments.

NAMIBIA

▪ City of Windhoek Peri-Urban Electrification

In Year 3, SAEP finalized the deliverables for the City of Windhoek (CoW) Peri-Urban Electrification activity.

The deliverables set out a number of options available to the CoW for accelerating the electrification of the

peri-urban settlements as well as recommendations of a preferred option. The next step after the submission

of deliverables was to assist the CoW’s electricity department to present the findings to their executive

committee (ExCo) and the municipal council in charge of overseeing electricity. The ExCo suspended the

consideration of what they deemed non-essential matters in favor of matters in response to the COVID-19

pandemic and other essential services. When movement restrictions eased, the CoW was preparing for a

municipal election, which delayed the consideration of the recommendations further. The elections also

introduced their own complications – the political dynamics changed post-elections, resulting in extensive

changes to the municipal council and its committees. SAEP now has to assist the CoW’s electricity department

to brief the new council members as well as the ExCo whose CEO was replaced. In Q2, the main task will be

to brief the ExCo and municipal council committees and to obtain permission to implement the

recommendations contained in SAEP’s report. The recommended options include the implementation of a

Public-Private Partnership (PPP) approach to electrifying the peri-urban areas.

▪ Follow-up Support to CENORED with Battery Storage

SAEP had previously conducted two rounds of techno-economic assessments to determine the viability of

integrating battery energy storage systems into the CENORED network. The recommendations of the second

assessment were that battery storage was viable at two sites within CENORED’s network and that the utility

should conduct detailed feasibility studies at both sites. The feasibility studies would precede a competitive

process that will be used to select an IPP to install and operate a Battery Energy Storage System (BESS)

(coupled with solar PV) within the CENORED network. During the first quarter of Year 4, SAEP worked with

CENORED on activities that will lead them up to the feasibility studies. One of these activities was the

development of a concept note for the United States Trade and Development Agency (USTDA), which will be

2 View the Mozambique RTM document release here: https://pdf.usaid.gov/pdf_docs/PA00X4WB.pdf


used by USTDA to determine whether they would fund the CENORED battery project. At the end of the

quarter, SAEP and CENORED completed multiple iterations of the concept note. CENORED made a late

request for the concept note to be split into two notes, each covering one of the two chosen sites. They

made this request because one of the sites is in an area that is not exclusively controlled by CENORED and

thus, approval for the release of the note has to be sought from that area’s Board. In Q2, SAEP will work with

CENORED to develop the RFP documentation for the selection of companies that will conduct the feasibility

studies. SAEP will also work with CENORED to engage stakeholders about their battery project. The

stakeholders will include financiers, equipment manufacturers and EPC firms.

ZAMBIA

▪ Zambia Operational Support to SHS Companies and Mini-Grid Developers

SAEP continued to support Fenix's team (now ENGIE Energy Access) in Zambia to develop a plan in response

to continued foreign exchange and macro-indicator deterioration. This included the submission of a draft

engagement summary document and an initial discussion on the implementation planning for the selected

strategic response levers. SAEP finalize a draft of the engagement summary document by the end of Q1and

plan to discuss any remaining inputs required for the implementation plan with Fenix in January 2021. The

development of the engagement summary, which is a summary of the work that has been done and the

scenarios developed, is a culmination of months of assistance provided to Fenix to determine possible

trajectories for macroeconomic indicators in Zambia and possible response approaches.

▪ Program Management Support to SIAZ and the Off-Grid Task Force (OGTF)

During the quarter, SAEP participated in a series of workshops organized to find a resolution to the

deteriorating fiscal environment and fiscal exemptions work. The workshops were organized by the Africa

Clean Energy – Technical Assistance Facility (ACE-TAF) and had participation from the government, off-grid

companies and other private investors in the Zambian energy sector. During the first of these workshops, a

working group was formed to promote broad participation on any resolutions that are reached. The work of

the working group included recommending revisions of the statutory instruments that govern fiscal

exemptions (Statutory Instruments 31 and 32) to remove ambiguities and include clearer definitions of

products and clearer codes. Part of the work of the working group included building on SAEP’s earlier work,

which produced an information booklet for customs officials that shows which solar products are exempted

from taxes and duties. The development of the booklet by SAEP accompanied training that was provided to

the Zambia Revenue Authority (ZRA) border officials on correctly identifying solar products. At the end of

Q1, the working group developed recommendations for the revision of the statutory instruments, including

recommendations for the inclusion of additional products, and the booklet for customs officials.

▪ Participation in Beyond the Grid Fund for Africa (BGFA) Evaluations

SAEP supported Beyond the Grid with the first round of their initial calls for proposals (BGFA1). The OC4

Lead and Deputy as well as the Off-grid Specialist and the Zambia Country Manager took part in the

evaluation of prequalification applications, which covered Liberia, Senegal and Zambia. BGFA1 will provide

funding for both mini-grids and SHS. The evaluation process culminated in the selection of companies that will

be invited to submit proposals for the final stage of the selection process.



Activity

Manager(s)

Start–

End Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Y4.04.01.02.NAM* TA to CENORED for procurement of energy from

new solar plants

Clarence Oelofse

10/1/2020 - 9/30/2021

CENORED Request

Y3.04.01.03.NAM • Recommendations on how to get developers

to lower their tariffs and/or combine their offers with battery storage

In progress: Activity stalled. SAEP had previously

provided feedback to CENORED on their proposed

procurement documents. CENORED have

committed to providing feedback

on a way forward

and this happened in early December 2020 when they

returned the procurement document with comments. SAEP and

CENORED will work to develop the scope for the next

phase of the work

Y4.04.01.04.MWI* Transaction advisory services

on Mpatamanga project

Cross Boundary,

Jorry Mwenechanya

10/1/2020 - 9/30/2021

GoM and IFC Request

OC1.04 • Quarterly progress

reports

• Development

• Agreements concluded


In progress: Continued to

provide transaction assistance to the Government of

Malawi as they navigate the development of the



Activity

Manager(s)

Start–

End Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Mpatamanga Hydropower Project

Y4.04.03.01.NAM Follow-up support to CENORED with battery storage

David Jarrett 10/1/2020 - 2/28/2022

CENORED Request

OC1 • Quarterly report of support provided to CENORED covering

• Assistance with making decisions based on report

recommendations

• Identifying credible partners (financiers,

manufacturers, integrators etc.)

• Developing and issuing

an RFP

• Ad-hoc memos to CENORED to aid the

transaction

In progress: SAEP assisted CENORED to develop concept notes for USTDA.

USTDA will use the concept notes to determine whether

they are interested in funding CENORED’s

feasibility studies for battery storage systems. At the end

of the quarter, CENORED informed SAEP that they

would seek approval for the concept notes from their

Board as well as the

Board of another area in which, one of the sites is located.

Y4.04.03.02.MWI* Monitoring and Evaluation, and supplementary

support for ESCOM vRE integration

Tshegofatso Neeuwfan

10/1/2020 - 9/30/2021

ESCOM Request

OC2 and OC3 • Quarterly reports

• Ad-hoc memos sent to

ESCOM

In progress: Draft deliverables were submitted to SAEP

by the consultant. Among the deliverables is a

report on studies for integrating the JCM plant into the Malawi

grid. SAEP is reviewing the deliverables with a

view to finalize them and thereafter submit the

recommendations to ESCOM

Y4.04.05.01.SWA EWSC Energy

Efficiency Program

Support

Jorry

Mwenechanya

10/1/2020 -

9/30/2021

EWSC

Request &

SAEP Initiative

NA • Report on feasibility of

recommended

measures

• Implementation plan

submitted

• Quarterly reports of assistance provided to

EWSC

In progress: SAEP

had regular update

calls with the utility during quarter 1.

The calls were used to receive updates on implementation

as well as to advise the utility on any challenges they were facing. At the end of

the quarter, SAEP selected the preferred consultant

to provide training on implementing energy efficiency

sustainably. What is left is for the contracting

processes to be concluded. Training will resume in quarter 2.

Y4.04.05.02.SWA Ministry (MNRE) Energy Efficiency

Action Plan Support

Jorry Mwenechanya

10/1/2020 - 2/28/2022

Ministry Request &

SAEP Initiative

NA • Monthly and quarterly reports on assistance

provided to the Ministry

• Final recommendation

and progress report on adoption and implementation

• Ad-hoc advisory memos to MNRE

In progress: SAEP supported the

MNRE to conceptualize the implementing agency

that will own the National Energy Efficiency Strategy and Action Plan

(NEESAP). At the end of the quarter, the University of

Eswatini committed to considering the proposed unit and

its structure and revert to the steering group

responsible for its establishment. SAEP will continue to



Activity

Manager(s)

Start–

End Date

Reasoning

/ Buy-in

Linkages /

Dependencies


support the MNRE in quarter 2

Y4.04.05.04.MDG Assistance to Madagascar industry association (SIM)

with Industrial Energy Efficiency Program Phase 1

Rija Rakotoson

10/1/2020 – 3/30/2021

SIM Request NA • Monthly reports on assistance provided to SIM

• Finalized request for applications

• A list of companies

selected to participate in the energy efficiency program

In progress: SAEP developed a strategy for the SIM energy efficiency program

and also drafted the request for proposal documents that will

be issued to SIM members to solicit their participation in

the EE program. During quarter 2, the documents will

be finalized with SIM's input and released to their

members. SAEP expects that the 10 companies that will

participate in the EE

program will be selected in the second quarter

Y4.04.05.06.ZMB Lusaka Water Supply and Sanitation

Industrial Energy Efficiency

Jorry Mwenechanya

10/1/2020 - 6/30/2021 02/01/2021-

09/30/2021

LWSSC Request

Y3.04.05.03.SWA Inception report; quarterly reports; close-out report with targets and progress

made in achieving targets

In progress: No activity in the quarter. Approval

for activity start was obtained in December 2020

Y4.04.06.01.NAM Provide follow-up assistance to the

City of Windhoek - implementation of recommendations

David Jarrett 10/1/2020 - 3/31/2021

COW Request &

SAEP Initiative

NA • List of financial institutions and other

stakeholders for the city to engage

• Structure of a PPP that

the City should adopt for peri-urban electrification

In progress: Activity progress

was interrupted by local government elections, which led to changes to the

municipal council and its committees. SAEP has to support

the electricity department as they seek approval of

recommendations

for the acceleration of peri-urban

settlement electrification from the municipal council

committee in charge of electricity

Y4.04.06.04.MDG* Madagascar mini-

grid catalytic grant program

Lorna

Jideamah

Mpumelelo Mlilo

10/1/2020 -

9/30/2021

SAEP

Initiative

Grants equivalent

activity • Periodic reports from

grant awardees

• Mini-grid grant funding disbursed to successful

recipients

In progress: The

successful applicants were announced during a grant launch

event. The Minister of Energy in Madagascar also attended the event

and expressed his appreciation and excitement for the

assistance. The next step is scoping technical assistance

for each of the

grantees

Y4.04.06.05.MDG Track and support

Solarland entry into the SAVA region SHS market

Rija

Rakotoson

10/1/2020 -

6/30/2021

AVOTRA

and Solarland Request

NA • Periodic reports on

progress made by Solarland in the SAVA region as well as

support provided by SAEP

In progress:

Activity progress was stalled by organizational

restructuring that Solarland is undergoing. Due to

COVID-19 related business impacts, Solarland laid off a

significant amount of their technical staff, including the POC for this activity.

Attempts to establish the company's readiness

to move forward with the activity will



Activity

Manager(s)

Start–

End Date

Reasoning

/ Buy-in

Linkages /

Dependencies


resume in the second quarter

Y4.04.06.06.MWI Operational support for Malawi SHS Kick-Starter grant awardees

and other SHS companies

Cole Johnson 10/1/2020 - 9/30/2021

SAEP initiative


• Quarterly reports detailing support provided to SHS

companies

In progress: SAEP continued to monitor follow-on SFE agent trainings

with Zuwa and Vitalite following roll-out of virtual

SFE trainings in the last quarter of Year 3. SAEP also

provided customized RTM support to Sunny Money and is

considering a request for additional support

from the company. SAEP is continuing to engage SHS

companies and other

donor partners to resolve the Malawi Revenue Authority's

recent inconsistencies in applying VAT/duties

to solar products. Lastly, the program is engaging partners

about developing an adaptation of the SFE training program

that could be rolled out to countries outside of Southern Africa

Y4.04.06.07.MWI Post solar PV and storage installation

support to Mercy James Centre (MJC)

Arthur Wengawenga

1/1/2021 - 6/30/2021

MJC request NA • Report with a review of MJC's solar PV and

battery installation as well as assistance provided by SAEP

In progress: No activity in this

quarter

Y4.04.06.08.MOZ Operational

support to Mozambique SHS

companies

Cole Johnson,

DTT Mozambique

10/1/2020 -

9/30/2021

SAEP

Initiative

NA • Quarterly reports

detailing support provided to SHS

companies

In progress: SAEP's

engagements with companies centered

around providing them with updates on the fiscal

incentives work that SAEP is doing in Mozambique as well

as to solicit their participation in the work. The extent of their participation

will be in the provision of data and other inputs that will

be used to revise the econometric model - a questionnaire was

issued to the companies to get this input

Y4.04.06.09.MOZ Support

implementation of Mozambique fiscal

incentives for solar products to improve

affordability

Cole Johnson,

DTT Mozambique

10/1/2020 -

9/30/2021

SHS

Company Request

NA • Biweekly and quarterly

reports on the support provided

• Fiscal incentives implementation roadmap

• Macroeconomic model of incentives scenarios

In progress: SAEP

finalized the roadmap for the

implementation of fiscal exemptions. Progress was also

made with developing the assumptions for the

revision of the econometric model that will inform decision-making

around options that the government will select for the

implementation of the incentives

Y4.04.06.10.ZMB* Alternative energy

solutions for health facilities in Zambia

Jorry

Mwenechanya

10/1/2020 -

12/31/2020

AVENCION

Request

NA • Periodic reports sent to

AVENCION with reviews of their designs,

In progress: No

progress with the counterpart in the quarter. SAEP will



Activity

Manager(s)

Start–

End Date

Reasoning

/ Buy-in

Linkages /

Dependencies


O&M plan and financial models

explore options for closing out the activity in the second

quarter

Y4.04.06.13.ZMB Program management

Support to SIAZ and OGTF

Chris Mubemba

10/1/2020 - 9/30/2021

SIAZ Request NA • Quarterly reports In progress: SAEP participated in a

series of meetings of a working group organized to find a

resolution to the deteriorating fiscal environment and

fiscal exemptions work. The work included

recommending revisions of the statutory

instruments that govern fiscal exemptions and

revisions of a

Customs Handbook of solar products on correctly identifying

solar products for tax and duties exemptions

Y4.04.06.14.ZMB Zambia operational support to SHS

companies and mini-grid developers

Cole Johnson 10/1/2020 - 9/30/2021

SAEP Initiative

NA • Quarterly progress reports

In progress: SAEP completed the scenarios for

responding to the deteriorating macro-economic indicators

in Zambia. These scenarios were used to validate and

prioritize a set of potential response options. This work

was summarized in a final deliverable that was shared with Fenix at the end of

the quarter


2.5 OUTCOME 5: INCREASED HUMAN AND INSTITUTIONAL

CAPACITY


In this quarter, SAEP’s OC5 worked on activities scaling the

program’s experiences and results to support dissemination of

sustainable knowledge sharing within the region for stakeholders

past the life of SAEP. The lessons continuously support institutions

in adapting their capacity building efforts towards increased

generation of MWs, transmission capacity and connections. In

addition, OC5 has forged new relationships to improve energy

access through facilitated engagement showcasing SAEP’s previous

work. Key activities under OC5 for Q1 of FY21 include:

▪ Concluded the off-grid energy access learning guide supporting

implementers of future off-grid programming in SADC to build

upon SAEP experiences

▪ Publicly announced SAEP’s partnership with the Kafue Gorge

Regional Training Center (KGRTC) through social media.

KGRTC will host SAEP’s leading practice and learning materials

on its digital platform for access by all regional energy

stakeholders

▪ Secured the SADC Energy team’s endorsement of the guidelines to enable skills and knowledge transfer for

setting up a transmission utility Project Management Office (PMO) for use by other utilities in the region

▪ Supported RERA with the development of a learning management system (LMS) platform with the purpose of

hosting e-learning modules on regulatory governance and regulatory impact assessment as well as future e-

learning modules and provide regulators with cost effective training programs


▪ Delivered a digital strategy for cost

effective future learning programs

through the support of RERA’s LMS

framework

▪ Obtained SADC buy-in to include

SAEP’s learning guides as part of the

SADC regional capacity development

training program

▪ Secured the formal collaboration

with KGRTC to host SAEP training

materials on a dedicated digital portal

for easy access for regional users



SOUTH AFRICA

▪ Collaboration with the South Africa Local Government Association (SALGA)

SALGA, the autonomous association for all 257 South Africa local governments is a public entity, accountable

to the South Africa Parliament, and serves as a strategic advisor representing the interest of local government

and acts to support the development mandate for local government. SALGA has a collective commitment

towards clean energy in South Africa and at the end of Q1, SAEP kicked off partnership engagements on

technical areas of support and capacity building activities. Assistance will be in the form of capacity building,

on-the-job training, facilitated dialogues and master classes, which will improve the municipalities’ ability to

deal with customer connections and improve the skills of the energy professionals within these municipalities.

The letter of collaboration will be presented for sign-off in Q2.

ZAMBIA

▪ ZESCO HR Capacity Building/Training Program Guidance

SAEP is working with ZESCO to improve the utility’s HR ability to identify competencies needed for bridging

any technical gaps and provide learning guidelines through a skills assessment toolkit. The aim of this activity is

to integrate the right operational skills within the organization and align such skills to ZESCO’s business goals.

With SAEP training activities completed, the monitoring of the realigned skills mapping is dependent on key

ZESCO HR personnel rolling out the new skills mapping assessments and revision of the ZESCO HR policy

and training commitments for 2020/2021. These commitments by ZESCO could not be met due to leadership

changes and business re-organization. SAEP will not be continuing with this activity for the rest of Year 4.

▪ Partnership with the Kafue Gorge Regional Training Center to Scale and Amplify Lessons

Learned from SAEP Activities

The KGRTC is a center of excellence in energy technologies constituted by the SADC energy ministers and is

mandated to facilitate sustainable energy development for transformation in the SADC region. SAEP formally

launched the collaboration with KGRTC through social media posts on Power Africa’s digital platforms. The

partnership with KGRTC will foster the continuous transfer of specialized knowledge and skills, which will

continue to support energy access plans for the region. In this quarter, KGRTC published SAEP’s power

project finance learning guide on its digital platform. SAEP will be facilitating the dissemination of other

approved learning guides and is establishing a catalogue of all training materials developed throughout the life

of SAEP for dissemination.

REGIONAL

▪ Support to RERA

SAEP is helping RERA to develop and deploy selected training courses through digital media to increase the

accessibility to skills development for member regulators. With SAEP’s support, RERA developed two e-

learning modules on regulatory governance and regulatory impact assessment respectively in Year 3.

In Q1, SAEP recommended options for RERA in establishing an LMS (web-based platform). SAEP provided

technical assistance in the LMS framework and supported RERA to define a path to select various LMS

solutions based on a long-term training strategy for RERA. The framework enabled RERA to design the

criteria for a cost effective and sustainable system to host RERA’s website and LMS.

The LMS and website are currently in design mode and will be launched in 2021 to enable the dissemination of

training materials on time and on demand to the regulators within the SADC region.

▪ Support to SADC

Based on previous collaboration and engagement with SADC on SAEP learning guides, SAEP was requested to

participate in the concept development for a regional capacity building program facilitated by the World Bank’s

Accelerating Regional Transformational Energy Projects (AREP). The aim of the AREP initiative is to support

SADC member states in removing project blockages and providing skills to promote bankability of projects in

the region. SAEP has joined the working group tasked with developing a full training program dedicated to the

member states with SAEP’s learning materials possibly forming part of the areas of proposed learning. The

future goal for this collaboration will be to empower members states to be able to operate, develop and

enhance projects autonomously by developing capacity development, knowledge sharing and dissemination of

technical advice.

▪ Support to SACREEE

The Southern African Development Community (SADC) Center for Renewable Energy and Energy Efficiency

(SACREEE) is mandated to scale up renewable energy and energy efficiency activities in the region through

establishment of strategic projects for member states. Despite the significant renewable energy resource

potential, Oceanic member states are limited in their existing energy sector structures due to lack of

institutional and private sector capacity for the development of resources that support renewable energy. To

mitigate some of these constraints, SAEP, in collaboration with the National Renewable Energy Lab (NREL), is

designing a priority flagship program for SACREEE to close some of these gaps through the establishment of

an engagement framework, the identification of policy enabling market structures and Specific, Measurable,

Achievable, Realistic, and Timely (SMART) programs to increase the number of people with access to modern,

clean and affordable electricity.

https://www.kgrtc.org.zm/e-books-login

https://www.kgrtc.org.zm/e-books-login


SAEP has consulted with Oceanic member states to identify focal points of contact to drive sustainable

engagements and candidates for skills training for renewable programs, as well as prioritized SMART programs

for consideration by SACREEE. SACREEE is currently undergoing review of the prioritized programs, the

engagement strategy framework and policy recommendation that will drive increased uptake of clean energy

solutions in the Oceanic member states.

OTHER

▪ Learning Guides

During this quarter, SAEP completed learning guides for dissemination to energy practitioners and market

participants. The learning guides are based on SAEP’s lessons learned in off-grid work that could support other

alternate markets within SADC, experiences in establishing a sustainable project management office to deliver

transmission projects and collaboration with utilities to manage performance. SAEP has also kicked off the

development of a learning guide for utilities and industry practitioners on how to develop effective solar

procurements. These learning guides provide energy practitioners with tangible reference cases and practical

experiences to strengthen their institutions and practical skills in driving the energy programs.


Activity No Activity Title

SAEP

Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /

Dependencies Deliverable(s) Activity Status

Y4.05.01.05.REG Off-grid energy

access (technology and processes) and enabling support engagement with

SADC Secretariat

Lana Nwosu 3/2/2021-

5/31/2021

Lessons from

Year 3 and SADC request

OC4 • Workshop

learning materials

In progress: The

review for the learning guides for off grid energy access (OGEA) has been

reviewed by Power Africa and the OGEA socialized with SADC

institutions. Release notes for dissemination will be

published for wider dissemination in the next reporting

quarter.

Y4.05.01.07.MWI Capacity building program to

increase peer-to-peer collaboration in load forecasting

management between EGENCO and ESCOM

Lana Nwosu, Willem

Theron, Arthur

Wengawenga

10/31/2020 - 3/31/2021

Need discovered during

Y3.05.03.01.MWI and Y3.02.03.01

OC3 • Workshop materials

• ToR/Joint Action Plan

In progress: Engagement held with

Power Market Ltd (PML) and SAEP team to determine focus of

engagement. PML is initial stages of operationalization.

Proposals made by DCOP-T to PML team in December 2020, awaiting

feedback from PML to determine position of activity to support

Malawian utilities.

Y4.05.02.01.REG Design an

engagement strategy to support SACREEE with the Oceanic member

states

Lana Nwosu 10/1/2020 -

2/23/2021

SACREEE

Request

OC4 • Policy

improvement Report

• Energy snapshot

stakeholder consultation concept notes

• SACREEE program list

In progress: SAEP

has submitted the final draft for smart measurable and relatable programs

for the oceanic member states. A joint report is under

draft review with National Renewable Energy Lab (NREL)

Clean Energy Center

in the identification of policy issues and

enabling initiatives that are top of mind for the oceanic member states based

on the data and information available. SACREEE will be

providing comments to SAEP and NREL in Q2.

Y4.05.02.02.REG Refresh and review of RERA training curriculum

Lana Nwosu 10/30/2020 - 4/30/2021

RERA Request OC1 • Capacity building report

In progress: SAEP and RERA Executive Director and the

Secretariat evaluated the scope of work to address RERA's

training framework in light of the existing pandemic and to align


Activity No Activity Title

SAEP

Activity

Manager(s)

Start–End

Date

Reasoning /

Buy-in

Linkages /


requirements for the training framework with the program’s

purpose. The SOW concept was revised and plans to sign it off

in FY21 Q2 are underway.


2.6 PROGRAM MANAGEMENT OFFICE

SAEP continues to maintain good relationships with

counterparts across the region. Strong engagement and

proactive support to counterparts has set the stage for

sustained collaboration, coordination and knowledge-sharing

in Q1. The SAEP PMO team continued to work with the

various outcomes in reaching the life-of-project set targets

and communicating and sharing SAEP’s achievements. The

PMO submitted various Program deliverables during the first

quarter of Year 4 to communicate program updates to

USAID/Southern Africa and Power Africa. These include:

▪ Biweekly Status Reports: SAEP submitted biweekly

reports throughout the quarter (October – December

2020) for use by the COR in program management

▪ Year 4 Work Plan: SAEP worked on the feedback

received from the COR throughout Q1 and submitted a

second version to USAID/Southern Africa on 27

December 2020; final approval is expected in Q2

▪ Year 3 Annual Progress Report: SAEP finalized the Year 3

Annual Report and submitted it to USAID/Southern

Africa on 30 October 2020. After addressing feedback

and comments from the COR, SAEP submitted a second

draft report to USAID/Southern Africa on 18 December

2020; final approval is expected in Q2

▪ Success Stories: SAEP drafted two success stories and submitted these for approval as part of this Quarterly

Report (refer to Appendix E)

▪ DIS Report: On a quarterly basis, SAEP submits the DIS report to USAID/Southern Africa. The aim of this

report is to build a portfolio management system in order for USAID to facilitate evidence-based decision-

making. The FY20 Q4 report was submitted on 15 October 2020

▪ PAIS Reporting: SAEP updated the PAIS online platform with current data covering FY20Q4 on 15 October

2020

▪ Power Africa Tracking Tool (PATT) Update: SAEP provided regular updates to the PATT. The current status

is as follows: 65 transactions of which 52 are active, nine on hold and four proposed. Since Program start, 27

transactions have reached FC and are not counted as part of the total transactions tracked by SAEP

▪ Environmental Review Forms: SAEP submitted all ERFs for Year 3 activities to USAID/Southern Africa for

review


Given SAEP’s regional focus, the coordination of partnerships and alliances is critical to implementing activities and

gaining stakeholder buy-in. In FY21 Q1, SAEP continued to set the stage for sustained collaboration, coordination

and knowledge-sharing as well as build on new relationships and networks with the private and public sector to

accomplish set targets and amplify the Program’s successes. SAEP has maintained established partnerships and

identified new local, national, and regional institutions that the Program can work with to tailor and implement

core activities. The continued engagement with counterparts in jointly designing activities will be highly prioritized.

As such, these partners named throughout SAEP’s technical approach, are not just serving as counterparts for

technical assistance, but are also committing their own resources and work alongside SAEP for activity

implementation. Below are detailed updates of SAEP’s various cross-cutting activities including Communications

and Outreach, Performance Monitoring, Gender Integration and Environmental Mitigation and Monitoring.

COMMUNICATIONS AND OUTREACH

In Q1 of Year 4, the SAEP Communications team:

▪ Communication Materials

o Developed a ToR and made logistical arrangements for a Malawi-based video company to capture

footage of rural and urban electricity infrastructure and film interviews with SHS Kick-Starter

grantees. This task was successfully executed on 6 October 2020. The footage will be used to

develop a three-minute success story video of SAEP’s support to the off-grid energy sector over the

PMO Top Achievements and Results

▪ Developed and submitted the SAEP

Year 3 Annual Report to

USAID/Southern Africa on 30 October

2020

▪ Successfully supported the

implementation of the high-level

Madagascar Mini-Grid Development

Grant award event and built public

awareness through Power Africa’s,

USAID/Madagascar’s and the U.S.

Embassy to Madagascar’s social media

platforms

▪ Kickstarted an energy and wildlife

engagement and received buy-in from

two energy utilities in rolling out a

program to assist the utilities to reduce

revenue losses through mitigating and

planning for wildlife interactions with

energy


past two years and showcase resulting impacts from this work. On 17 December 2020, SAEP

appointed a South African-based video company to produce a three-minute video by using the raw

footage, other visuals and script. SAEP plans to finalize this video during the first part of Q2

o Drafted a proposal and ToR for a video company to produce a three-minute documentary video

about Power Africa’s support to power transmission in Angola as well as capture high-quality photos

of Angola’s electricity infrastructure. The video will explain RNT’s transmission project and its

importance, the enabling partnerships required to

complete the project and the highlights, challenges

and ultimate benefits of the project through the

voices of the RNT PIU functional unit heads. SAEP

appointed a Luanda-based company for this task,

which will begin in Q2, on 18 December 2020

o Updated and finalized the English and French versions

of the SAEP Madagascar country fact sheet

o Developed a PowerPoint presentation giving an

overview of SAEP’s activities in Madagascar for

USAID/Madagascar

o Developed two SAEP country fact sheets for i)

Eswatini and ii) Lesotho, which USAID/Southern

Africa approved on 19 October 2020

o Drafted two success stories titled:

‒ USAID/Power Africa Grant Program Helps Solar

Home System Companies Connect Thousands of

Malawians to Electricity

‒ USAID Helps Three Southern African Utilities

Connect Over Half a Million New Customers to

Electricity

o Drafted talking points about the work with RNT and ENDE in Angola and submitted a final version to

Power Africa on 9 October 2020. The purpose of the talking points is to have content available for

when and if the Power Africa Coordinator speaks about

Angola

o Developed the Malawi SHS Kick-Starter for Malawi

Milestone 5 newsletter, which was distributed to the

grantees under the program, the working capital

providers and USAID/Malawi on 15 December 2020. The

purpose of the newsletter is to keep track of the status

of the Program and report on the progress, success

stories and good news as a result of the Program

o Uploaded the Mozambique Route-to-Market (RTM) tool

documents and videos onto the USAID Development

Experience Clearinghouse (DEC) on 3 December 2020.

In addition, the Communications team prepared a

document release note on the Mozambique RTM tool

with links to an instructional guide, the videos and data

on the DEC. The release was shared with a targeted

distribution list consisting of off-grid companies,

cooperating partners and the Government of

Mozambique on 17 December 2020

▪ Events

o SAEP arranged and hosted the successful virtual Power Africa Madagascar Mini-Grid

Development Grant Winners’ Announcement event on 23 November 2020 on Zoom with

around 35 participants. The U.S. Ambassador to Madagascar, Michael Pelletier, Minister of Energy,

Water and Hydrocarbons, Christian Ramarolahy, and Power Africa Coordinator, Mark Carrato

attended and gave remarks. The Communications team had numerous meetings with

USAID/Madagascar and Power Africa in preparation for the event and developed and managed

various documents and processes to promote the smooth implementation of the event as well as

visibility for Power Africa and USAID:

‒ Scene setter/briefing document

‒ Invitation letter to the Minister of Energy, Water and Hydrocarbons on behalf of the U.S.

Ambassador to Madagascar

‒ Media briefing document

‒ Press release

‒ Liaised with the video company throughout to successfully execute the event and production of

the video

‒ Prepared guidelines for the grant overview

video3 and grantee acceptance speeches

video and a script for the overview video for

the video company to use to develop these

two items to be presented during the live

event

‒ Helped to coordinate and execute the

recordings of the grantee speeches, which

were done virtually through Zoom on 13

3 View the Madagascar grant overview video here: https://www.youtube.com/watch?v=H0RgL8k3ujQ&ab_channel=PowerAfrica

https://www.youtube.com/watch?v=H0RgL8k3ujQ&feature=youtu.be


November 2020. These recordings were presented during the live event as a substitute for live

speeches to avoid delay or interruption in speech due to connection issues in Madagascar

‒ Developed and distributed an invite to the live event on 17 November 2020

‒ Ensured that all items presented during the live event and distributed after the event were

translated correctly into French. The SAEP Madagascar Country Manager assisted in the

execution of this task

‒ Drafted letters of appreciation addressed to the U.S. Ambassador to Madagascar; Minister of

Energy, Water and Hydrocarbons; and Power Africa Coordinator

The event obtained great visibility through Power Africa’s, USAID/Madagascar’s and the U.S. Embassy to

Madagascar’s social media platforms. SAEP also posted about the event on the SAEP LinkedIn page. Media

who reported about the grant included La Vérité, La azette, L’Express and Taratra , Orange.mg,

Midi and Les Nouvelles.

▪ Social Media

o Prepared around 12 social media posts during this quarter, most of which were posted on Power

Africa’s social media platforms and some on USAID/Mozambique and the U.S. Embassy to

Madagascar’s social media platforms. The Communications team amplified this content on the SAEP

LinkedIn page. Social media topics included:

SAEP’s collaboration with Kafue Gorge

Regional Training Centre (KGRT)

Madagascar Mini-Grid Development

Grant Winners’ Announcement Virtual

live event

Mozambique Route-to-Market

geospatial tool document release

Successes/good news from the

grantees under the SHS Kick-Starter

Program for Malawi

o Drafted an article for Power Africa’s blog

on the social publishing platform, Medium.

Power Africa published the blog titled

“Power Africa Awards $1.2 Million in

Grants for the Development of Mini-Grids

in Madagascar” on 23 November 2020

o Updated the SAEP LinkedIn page on a

regular basis by creating content for new

posts, reposting or amplifying news as well

as SAEP vacancies. This in turn has resulted

in the following achievements:

The LinkedIn page reached 3,200

followers by 31 December 2020

Content is frequently liked, celebrated

and reshared by followers

▪ Copy Editing

o Continued to review and edit major

deliverables in various publication forms for

readability, spelling, grammar, accuracy,

punctuation and consistency

https://lexpress.mg/24/11/2020/electrification-rurale-un-million-de-dollars-pour-les-mini-reseaux/

https://www.newsmada.com/2020/11/24/herinaratra-12-tapitrisa-dolara-avy-aminny-usaid/

https://powerafrica.medium.com/power-africa-awards-1-2-million-in-grants-for-the-development-of-mini-grids-in-madagascar-44e464fefe8e




▪ Other

o Had an introductory meeting with the West

Africa Energy Program’s (WAEP)

Communications team on 6 October 2020,

where ideas and templates on communication

items were discussed

o Had numerous meetings with KGRTC’s

marketing team to discuss and plan SAEP’s

collaboration with KGRTC, which was done

through social media posts on Power Africa’s

social media platforms. SAEP will continue to

share learning guides and energy related

training and workshop materials with KGRTC,

which will be hosted on KGRTC’s digital

platform during and after the tenure of the

Program. In addition to this, SAEP was also

requested to review and provide feedback on

KGRTC’s website design and did so on 23

November 2020

PERFORMANCE MONITORING

The PMO’s Program Performance Management function coordinates interconnected tasks from knowledge

management services, M&E and program management support tasks. These tasks include tracking and monitoring

the performance of SAEP’s activities, data management and performance indicator reporting, archiving activity-

related documents and deliverables, providing performance feedback that will enable evidence-based decision-

making and reporting on various performance indicators. In this quarter, the Performance Monitoring team

completed the following tasks: ▪ Updated the transactions status of all SAEP transactions on the SAEP transaction database

▪ Adhered to the USAID and Power Africa quarterly reporting requirements by collating and uploading

quarterly data and deliverables on the standard reporting platforms:

o DIS – Development Information Solution

o PATT – Power Africa Transaction Tracker

o PAIS – Power Africa Information System

o TEAMS – Training & Exchanges Automated Management System

o DDL – Development Data Library

o DEC – Development Experience Clearinghouse

▪ Updated the Performance Management Evaluation Plan (PMEP) and submitted it to USAID for approval. The

updated plan is yet to be approved by the COR. The following updates were made to the PMEP:

o Updated targets for the following indicators

Direct electricity access: Target was reduced from 3,000,000 to 2,130,000 connections

Capacity (MW) from transactions supported by SAEP that achieved financial closure: The target

was increased from 4,000 MW to 5,000 MW

▪ Tracked progress of Q1 Year 4 activities and deliverables using the Wrike project management tool and

documented updates on the Master File Tracker shared with USAID/Southern Africa

▪ Maintained the SAEP Google shared drive by archiving all SAEP deliverables and documents for future

reference

▪ Through SurveyMonkey, the M&E team was able to assist some of the technical teams to develop and analyze

the following surveys:

o Environmental Management Evaluation: SHS Survey

o SACREEE Oceanic Member State Surveys (Comoros, Seychelles and Mauritius)

o RNT Pre- and Post-Training/Workshop Evaluation Form (Change Management Training)

GENDER INTEGRATION

All planned gender integration activities, specifically around implementation of work done in Year 3, were placed

on hold in Q1 due to the delay in the approval of the Year 4 Work Plan. However, SAEP continued to engage with

key stakeholders on the importance of female empowerment, understanding how those institutions are currently

considering gender equality in their operations and working to advance those views towards gender-integration in

the energy sector.

ENVIRONMENTAL MITIGATION AND MONITORING

During Q1 of Year 4, the SAEP Environmental Specialist completed the following:

▪ Assisted with kickstarting the energy and wildlife engagement activity, which included appointing the

Endangered Wildlife Trust (EWT) to work with electric utilities in rolling out the first of a four-part program

to equip utilities to better manage wildlife and electricity interactions and reduce the risk of revenue loss of as

a result of these interactions. In this first quarter, SAEP and EWT held successful workshops with EDM and

EGENCO to explain the planned activity and how it can assist the utilities to save money through mitigating

and planning for wildlife interactions with electricity. EDM and EGENCO requested letters from SAEP to

present the program to their respective BoDs. SAEP is now awaiting a response from EGENCO and EDM. In

Q2, SAEP hopes to engage ESCOM in Malawi and ENDE and RNT in Angola in the rollout of the activity in

the region

▪ Evaluated the applications for the Madagascar Mini-Grid Development Grant for environmental compliance


▪ Assisted SunElex to review environmental authorization and licensing processes. SunElex is a South African

company focused on producing sustainable energy with environmentally friendly processes and technologies.

The Environmental Specialist reviewed the scoping report and all environmental documents to date and

developed a report that was sent to SunElex. A meeting with SunElex is expected in the next quarter

▪ Worked on various activities under OC3 for RNT in Angola. Highlights from Q1 were:

o Advised RNT in the process of evaluating the EoI for the appointment of the RAP implementation

consultant. This included knowledge-sharing workshops on how to undertake an evaluation, review,

format and finalize the evaluation report and address comments the AfDB had on the report

o Assisted RNT by translating the AfDB environmental and social quarterly report template into

Portuguese and held a three-hour workshop with RNT explaining what is needed in the report. SAEP

reviewed the first draft of the report and provided feedback to RNT. The report will be finalized and

sent to the AfDB in the next quarter

o Developed an Environmental Roadmap and RACI Matrix template for RNT to populate further

o Held weekly progress meetings with the Environmental and Social team to keep the team on track

regarding environmental matters crucial to the project, such as the delay in the Department of

Energy issuing RNT with an environmental license, project risks, progress on the development of the

Environmental and Social Management System and the Environmental and Social Project Manual

▪ Continued to follow environmental review steps during SOW development so that SAEP Activity Managers

perform the appropriate environmental due diligence for each activity proposed in the SAEP Work Plan.

During this quarter, SAEP continued to work on completing Environmental Review Forms (ERFs) for activities

2.7 FINANCE AND OPERATIONS

During this quarter, the SAEP Finance and Operations (F&O) team

continued to adapt all processes related to project financial management,

compliance and statutory reporting, project administration and security,

recruitment and performance evaluation, subcontracting and ICA

management, logistics coordination, technology support, and grants

management to a virtual environment. The effective transition to a

virtual environment has enabled the technical team to continue

delivering technical assistance to all regional counterparts.

On 16 September 2020, the President of South Africa, Mr. Cyril

Ramaphosa, moved the country to alert level 1. The eased restrictions

meant that international travel to and from the country could commence

from 1 October 2020. However, SAEP Leadership, in conjunction with

USAID, continued to maintain the position to defer international travel

due to the risk that SAEP staff members may contract the coronavirus

and possibly be refused entry into a Southern Africa country and/or back

into South Africa upon return.

On 28 December 2020, President Ramaphosa addressed the nation again and announced that the country would

revert to a partial lockdown level 3 to reduce the spread of the coronavirus during the festive season. In terms of

the adjusted Level 3 lockdown regulations, all workplaces may continue with their activities unless specifically

excluded from the regulations. Members of the public and organizations are still required to comply with social

distancing measures. SAEP Leadership will continue to evaluate all health and safety information available and

consult with the USAID Regional Missions, the Deloitte Member Firms, and the Deloitte U.S. Home Office

COVID-19 PMO and Risk Review team to determine when it is safe for staff to return to the office.

FINANCE AND STATUTORY REPORTING

In Q1 of Year 4, the Finance team:

▪ Finalized and submitted all project value-added tax (VAT) returns and responded to audit questions raised by

the South Africa Revenue Service (SARS) for FY21Q1 submissions

▪ Submitted all pay-as-you-earn (PAYE) returns for the quarter and processed payments to SARS

SUBCONTRACTING

In Q1 of Year 4, SAEP:

▪ Issued a new firm-fixed price task order to Cross Boundary. Under this task order, CrossBoundary provided

targeted transaction support to SunElex, a South African IPP. This support included developing a bespoke

financial model, which SunElex can use for its proposed two-phase “solar plus storage” projects in South

Africa

▪ Fully executed a firm-fixed price subcontract with the EWT, a South African non-profit organization that has

supported other Power Africa projects in mitigating the damage to wildlife from electricity infrastructure.

EWT is expected to work with utilities in Angola, Malawi and Mozambique

Project Staffing

On 1 November 2020, Ms. Jennifer Ifeanyi-Okoro, SAEP’s Deputy Chief of Party Technical (DCOP-T), took the

position as SAEP’s Acting Chief of Party (ACOP) in the absence of SAEP COP, Ms. Liz Pfeiffer, who went on leave

of absence. On 1 December 2020, Mr. Adam Newman, Deloitte Home Office Project Manager took the position

F&O Top Achievements and Results

▪ Awarded the Power Africa Madagascar

Mini-Grid Development Grant to

three companies on 23 November

2020 during a successful live virtual

event. USAID has committed up to

USD $1.5 million in grant funding to

assist developers to fund the

infrastructure required to build new

off-grid connections in Madagascar

▪ Successfully migrated the Sage Payroll

VIP system to the Sage Online Cloud.

This allows online leave application

and approvals and dissemination of

important staff information like

payslips virtually

https://en.wikipedia.org/wiki/Cyril_Ramaphosa




as SAEP’s ACOP and Ms. Ifeanyi-Okoro resumed her role as DCOP-T. Ms. Pfeiffer will resume her role as the

project COP on 8 February 2021.

No new staff joined SAEP in Q1. The SAEP team actively recruited for the following positions expected to be filled

in Q2:

▪ SSTA SCADA Specialist (On hold)

▪ SSTA Madagascar Country Manager

▪ SSTA Madagascar Grants Officer

Please refer to Appendix F for the SAEP Organizational Chart.

PROCUREMENT

Key procurement initiatives that occurred during Q1 include:

Procured English to Portuguese translation services to assist with all translation requirements for technical

delivery in Angola

▪ Procured English to French translation and interpretation services leading up to and during the Madagascar

Mini-Grid Development Grant Winners’ Announcement event and for subsequent translation of Fluxx training

material for the grantees

▪ Issued an RFQ to obtain the service production company to host the virtual Madagascar Mini-Grid

Development Grant Winners’ Announcement event and produce videos for incorporation into the live

proceedings

▪ Provided support to the RTS Botswana event to provide catering and printing of manuals

▪ Issued an RFQ to obtain the services of a production company to develop a three-minute video on the

Program’s support to the off-grid sector in Malawi. Production will commence in January 2021

▪ Identified a service provider to produce a three-minute documentary video about SAEP’s transmission work in

Angola that includes interviews with the RNT PIU staff. The service provider will also capture video footage

and photographs of urban and rural Angola (Luanda surrounds) showing electricity infrastructure as well as

areas lacking electricity. Production will commence in January 2021

GRANTS

▪ Madagascar Mini-Grid Development Grant Program

To contribute to the Government of Madagascar’s target to achieve an electricity access rate of 70% by 2030,

SAEP launched Power Africa’s Madagascar Mini-Grid Development Grant in November 2020. The grant is

intended to support mini-grid developers who have obtained concessions from the Agency for Rural Electrification

Development (ADER) to build mini-grids but are struggling to source funding to reach FC; while developers with

existing mini-grids are expected to use the grant to fund the infrastructure required to connect additional

households to the grid.

To commence this activity, SAEP successfully hosted the Madagascar Mini-Grid Grant Winners’ Announcement

virtual event on 23 November 2020, with the attendance of the U.S. Ambassador to Madagascar, Madagascar

Minister of Energy, and Power Africa Coordinator. The event was hosted in French with simultaneous English

interpretation. Grant agreements with Autarsys Madagascar SARL, Henri Fraise Fils & Cie, and Hydro Ingenerate

Etudes Et Realisations (HIER) were finalized and fully executed, totalling just under $1.3 million.

To promote grant compliance, the SAEP grants team conducted in-depth training on how to complete and submit

progress and financial reports on the Fluxx grants portal for all grantees. The training took place from 30

November to 1 December 2020.

▪ SHS Kick-Starter Program for Malawi

To improve access to electricity across Malawi, SAEP awarded USD $2 million in results-based grant funding to

four SHS companies in July 2019. Through the SHS Kick-Starter Program for Malawi, the awardees – SolarWorks!,

VITALITE, Yellow and Zuwa Energy – have been able to connect just over 57,500 households to electricity by

December 2020 with a total of USD $718,329.91 in grant funds disbursed over the period. The M&E team, Grants

Manager and relevant off-grid technical team members reviewed and approved the Milestone 6 reports before

releasing payments.

The off-grid team provided technical and capacity building assistance to the grantees by continuing sales force

effectiveness trainings to develop the skills of sales agents and the companies benefited by utilizing SAEP’s RTM

tool to strategize the expansion of their sales network to best maximize sales.


2.8 TRANSACTION AND ADVISORY SERVICES


SAEP continued to engage IPP developers, utilities, regulators

and investors in the energy sector on a variety of issues to

remove barriers impeding their success. SAEP’s transaction

advisory services included helping developers raise capital,

conducting due diligence on behalf of investors, helping

power project developers navigate often fragmented

regulatory regimes, and preparing and negotiating PPAs; all

work which is catalytic in helping power transactions come

to fruition and translate to new generation capacity and

connections. The full pipeline is outlined in further detail in

Appendix A. Highlights from Q1 include:

▪ SAEP’s support of the 350 MW Mpatamanga

Hydropower Project achieved many successes.

Amongst the considerable advances realized, despite global travel restrictions, are i) the facilitation of five

bidders’ conferences and ii) the application of a Project Preparation Advance from World Bank’s International

Development Association (IDA) for USD $6 million of development funding for the Government of Malawi to

procure additional advisors for the final stage of the project’s development

▪ Supported South Africa IPP, SunElex, to develop a base case bankable financial model for use in its bidding

process as well as a generic financial model available to other developers and trained SunElex on how to use

and apply the model

TRANSACTION PORTFOLIO

The table below lists the current portfolio of transactions that SAEP is supporting. The table is organized by the

project status, as follows:

▪ Completed TTS: Projects have already received SAEP advisory support and are reflected in the M&E metrics

of the program

▪ Active Targeted Transaction Support (TTS): Projects are receiving comprehensive support from SAEP under a

discrete SOW

▪ Transaction Advisory (TA): Projects are receiving light-touch advisory services

▪ Inactive: Projects were supported by SAEP, but required no support in this reporting period

▪ Tracking/Scoping: Projects to which SAEP did not provide advisory support during this period, but are

included in the transaction pipeline as SAEP is in frequent contact with these projects and is exploring areas

where support could be provided

Status Project Name Country Project Type

Completed

TTS

EGENCO asset expansion

• Tedzani III station

• Mapanga station

• Lilongwe B station

Malawi 5 MW – Hydro

28 MW – Diesel

EOSOL (now ANKA) Madagascar

Segment 1 Madagascar 0.62 MW - Mini-grid

Golomoti Solar PV Malawi 18 MW – Solar PV

Nkhotakota Solar Malawi 26 MW – Solar PV

Lilongwe Solar Malawi 25 MW – Solar PV

Naamacha Wind Farm Mozambique 60 MW – Wind

Redstone Solar Thermal Power project South Africa 100 MW – Solar PV

City of Cape Town Rooftop PV SSEG

Program South Africa 50 MW – Solar PV

West Rand Urban Solar Farm South Africa 10 MW – Solar PV

Transactions Top Achievements and

Results

▪ Supported the budgeting, drafting of the

application, and preparation of responses to

the World Bank’s questions in an

application to the World Bank IDA for an

advance in funding for the 350 MW

Mpatamanga Hydropower Project

▪ Mozambique’s Temane Transmission

Project reached FC on 10 December 2020



GBA Swaziland Riverbank Eswatini 10 MW – Solar PV

EEC Lavumisa Eswatini 10 MW – Solar PV

Kanyama Zambia 100 MW – Hybrid (96 MW)

Wind and 4 MW Solar) GETFIT Hydro - Mini Hydro Zambia 100 MW – Hydro

Active TTS

ANKA (formerly EOSOL) Madagascar:

Segment 2 (1.5MW), Segment 3

(0.85MW)

Madagascar 2.35 MW – Mini-grid

BPC Solar PV Botswana 100 MW – Solar PV

Neo1 – OnePower Lesotho 20 MW – Solar PV

Themis Sahofika Madagascar 192 MW – Hydro

Mbongozi Power Malawi 41 MW – Hydro

Mpatamanga Hydro Electric Project Malawi 350 MW – Hydro

Malawi-Mozambique Interconnector Malawi 1,000 MW – Transmission

Nchalo Solar IPP Project Malawi 10 MW – Solar PV

Temane Transmission Project (TTP) Mozambique 900 MW – Transmission

420 MW – Gas CENORED Namibia 10 MW Solar PV + 10 MWh

storage

Transaction

Advisory

(TA)

NACALA Combined-Cycle Gas Turbine Mozambique 400 MW – LPG

Mandimba Solar Mozambique 50 MW – Solar

Lichinga Solar Mozambique 23 MW – Solar

RSSC Grid-Tied Solar PV Plants Eswatini 10 MW – Solar

Mondi - Biomass / Cogen Richards Bay

plant South Africa 48 MW – Biomass

Ngonye Falls Hydro Zambia 180 MW – Hydro

GETFiT Zambia Round 1 Zambia 120 MW – Solar

Unika Wind Mpepo Power Zambia 100 MW – Wind

Inactive

Rovuma Gas Mozambique 250 MW – Natural Gas

Gigawatt Park Phase 2 Mozambique 230 MW – Natural Gas

Temane (Sumitomo) Mozambique 100 MW – Natural Gas

Shell Afungi GTL Mozambique 50 MW – Natural Gas

Yara Fertilizer Mozambique 30 MW – Natural Gas

Okahanja Namibia 10 MW – Solar

SA LNG South Africa 3000 MW – Natural Gas

EDF-Innowind: Scarlet Ibis South Africa 15 MW – Solar

Lazybend Renewables South Africa 25 MW - Biomass

Plettenberg Bay Biomass South Africa 25 MW – Biomass Generation

ZTK Interconnector Zambia 500 MW – Transmission

Gigawatt Zambia Hybrid Project Zambia 71 MW – Hybrid

Tracking /

Scoping

Akuo Energy Madagascar 2.9 MW – Solar

Lesedi CBM Botswana 50 MW – Natural Gas

Kalahari CBM Botswana 97MW – Natural Gas

Eswatini Combined Cycle Gas Turbine

(CCGT) Project eSwatini 310 MW - LNG

Mohale's Hoek Lesotho 30 MW – Solar

Mazenod Lesotho 40 MW – Solar



Luweya River Phase I Malawi 15 MW – Hydro

Kanengo Solar Malawi 20 MW – Solar

Dondo Solar Mozambique 50 MW – Solar

Energy4all Mozambique Mozambique 3 MW – Solar

Oshakati Premier Electric (OPE) Solar 5 MW - Solar

Walvis Bay Gas Namibia 200 MW – Natural Gas

Arcelor Mittal South Africa (AMSA) Solar

PV Energy Procurement South Africa 160 MW - Solar

IPP Global South Africa 200 MW – Natural Gas

SASOL Renewable Energy Procurement South Africa 600 MW – Multiple technology

Sunelex: Matjhabeng Solar South Africa 66 MW – Solar

Wonderkop Smelter South Africa 40 MW – Energy Efficiency

Kumi Kumi Zuba Zambia 100 MW – Solar

Kalahari GeoEnergy Geothermal Project Zambia 10 MW – Geothermal

Kabompo Hydro Zambia 40 MW – Hydro

Ngonye Solar Zambia 88 MW – Solar

Baynes Hydro Power Project Namibia 600 MW – Hydro

Asani Biogas Mozambique 120 MW – Biogas

Buroma Hydro Angola 200 MW – Hydro

Lupata Hydro Angola 600 MW – Hydro

AMEA Power Wind Zambia Zambia 100 MW – Wind

Full descriptions and the status of each project are given in Appendix A.


BOTSWANA

▪ 100 MW BPC PV Tender

SAEP continues to support BPC as procurement advisors to assist the utility to advance the project. After

significant changes to the procurement documentation (which are confidential), the procurement closed in

December 2020. SAEP supported BPC’s team meetings and is assisting BPC with updated evaluation criteria

to match the new project details. Due to the COVID-19 pandemic, further discussions will take place to

determine how SAEP can directly support the evaluation process itself and take part in the evaluation

meetings once bids are received.

ESWATINI

▪ 310 MW Liquefied Natural Gas (LNG) fired Combined Cycle Gas Turbine (CCGT) Project

On 26 October 2020, the Eswatini U.S. Embassy Political/Economic Chief, Mr. Mich Coker, asked SAEP to

provide urgent inputs to the intended development of a 310 MW CCGT project that involves a long-term

PPA to be entered into between the EEC and a private developer. On 28 October 2020, SAEP provided a

number of inputs/comments followed by a conference call between SAEP and Mr. Coker. On 9 November

2020, SAEP and USAID further discussed various concerns on the intended project’s unsolicited process and

costs. The details of the inputs and discussions are confidential at this stage.

▪

MALAWI

▪ 350 MW Mpatamanga Hydropower Project

SAEP support to the development of the Government of Malawi’s Mpatamanga hydropower project


continues following the release of the RFP for a project sponsor to the prequalified bidder – a consortium

comprising of SN Power and Électricité de France (EDF) on 25 August 2020. During Q1, SAEP supported the

Government of Malawi to:

o Broker an agreement between the government and their initial legal counsel, HSF, to have HSF

continue work on commercial agreements at risk

o Advance the negotiations of key commercial agreements between the government and IFC,

addressing outstanding issues on the PPA, IA, and Relationship Agreement Term Sheet

o Oversee a new advisor responsible for preparing a study on an alternate dam type design and

reviewed the final reports. This included the ensuing discussions with IFC’s technical teams to

prepare for newly identified geotechnical studies as required by the report

o Prepare for and host five bidder videoconferences

o Facilitate a host of conversations between the government and their environmental and social

consultant in support of the ongoing revision of the ESIA, Biodiversity Action Plan (BAP), and RAP,

including “on the ground” engagements with the local subcontractor, C12

o Support the drafting and review of an application to IDA for a Project Preparation Advance, which is

expected to provide up to USD $6 million of early-stage debt for additional development activities

o Supported the government’s procurement for legal counsel for the remainder of the development

period (until FC) by advising on received EOIs to compile a shortlist of bidders

o Continued to engage with the new environmental and social technical consultants and review their

inception and technical reports, including facilitating three monthly progress calls between the

consultant and the Government of Malawi Task Force

o Supported the bidder in conducting two site visits, navigating nuanced travel regulations during the

COVID-19 pandemic

SAEP’s support of Mpatamanga’s innovative PPP structure has enabled the achievement of several firsts for

the nation of Malawi:

o SAEP has been supporting the Ministry of Natural Resources, Energy and Mining in their first PPP

working with the PPP Commission of Malawi to develop Malawi’s first project with a required

investment in excess of USD $1 billion

o The project will rely on the new transmission infrastructure being financed through the USG’s

Millennium Challenge Corporation (MCC)

▪ Malawi–Mozambique Interconnector

SAEP completed training for ESCOM's control engineers on operating in an interconnected environment on 8

October 2020. ESCOM is now in the implementation phase of the Mozambique–Malawi Regional

Interconnector Project, a 1,000 MW capacity, 400 kV project that will interconnect the transmission systems

in Mozambique and Malawi, allowing the two countries to engage in bilateral and regional power trade in the

SAPP. The project reached FC in July 2020. ESCOM Malawi will be submitting an FC claim letter of

confirmation as to the role and impact SAEP has played on the project through its capacity building efforts.

▪ 15 MW Nchalo Solar Generation Project

Illovo Sugar Malawi plans to procure a 20-year PPA with an IPP for 15 MW. Following a selection process,

Illovo selected a preferred bidder as well as a reserve bidder. SAEP previously tasked legal firm, Cliffe Dekker

Hofmeyr (CDH) for a legal review of the regulatory framework in Malawi and Zambia, where Illovo Sugar

intends contracting with IPPs. Illovo is currently not moving ahead with the project until they have resolved

all required regulatory issues. CDH Director: Projects and Energy Sector Head, Jay Govender, is leading the

CDH team for this task. On 13 October 2020, Mrs. Govender submitted a supplementary memo on Section

21(3) of the Malawian Electricity Act. During the reporting period, SAEP reviewed and discussed the contents

of the memo. The key points from the memo are as follows: The inclusion of section 21(3) of the Electricity

Act, as part of the 2016 amendment to the Electricity Act, allows for bulk consumers to buy power directly

from generators, subject to MERA’s approval. However, it is not clear on what basis the generator will be

allowed to bypass the single buyer in the market chain and sell directly to bulk consumers. The Electricity Act

does not provide for a generator selling power outside of the single buyer. From the two points, it seems

that there is a "contradiction" in the electricity act as the consumer can buy from the generator, but the act

does not provide for the generator to sell to the consumer. SAEP met with Illovo Sugar’s Group Legal


Counsel - Commercial, Vicki Hobson, on 3 November 2020 to discuss a potential way forward. SAEP

recommended that: i) Illovo proceeds with the grid stability study, ii) IIlovo files for a license to buy as a bulk

consumer, and iii) SPV/IPP files for a generation license.

▪ 50 MW Quantelle Solar PV

Quantelle is developing a 50 MW solar PV project. Quantelle (Seller) and ESCOM (Buyer) signed a 20-year

PPA. Malawi’s Department of Energy is aware of the Quantelle PPA and that the project is part of ESCOM’s

generation capacity planning. Quantelle is seeking funding from American Trade Finance (Atrafin) to fund

solar equipment imported from the US. Atrafin is assisting Quantelle with the raising of Export-Import

(EXIM) underwritten finance. Qauntelle is seeking EXIM to potentially do underwriting for 15- to 18-year

debt funding with sovereign guarantees behind ESCOM PPAs. The intention is to include sovereign

guarantees by the Government of Malawi as part of the IA. SAEP met with Atrafin CEO, Mr. Harry Kaplan,

on 17 December 2020 and provided inputs and guidance to Atrafin in respect of the financing to be raised

and backed by the ESCOM PPA. Atrafin will revert to SAEP for potential assistance.

MOZAMBIQUE

▪ Temane Transmission Project

The TTP reached FC on 10 December 2020. Following the issuance of the World Bank, Norwegian Trust

Fund and the AfDB effectiveness letters, the IsDB issued its effectiveness letter on 27 November 2020. OFID

effectiveness was achieved on 7 December 2020. The USD $542 million TTP is designed to evacuate power

from the 450 MW Temane Power Plant located in the northern part of Inhambane Province to Maputo, the

nation’s capital of 1.2 million people located in the south of the country, so as to service households,

businesses and industrial concerns as well as on-route communities and customers. Construction of the 400

kV TTP transmission line with a capacity of 900 MW totaling 560 km will be completed by 2023 and is the

first phase of the Mozambique Integrated Transmission Backbone System Project. SAEP supported

Mozambique’s national utility, EDM, to bring the TTP to FC by providing an embedded advisor to deliver

long-term organizational and technical support, who as of December 2020, has been permanently recruited

by TTP as a full-time project coordinator.

NAMIBIA

▪ NamPower Concentrated Solar Power (CSP) Tender for Transaction Advisor

In pursuance of Namibia's National Integrated Resource Plan (NIRP), NamPower plans to develop a CSP

project. A developer in its capacity as an IPP will be procured in partnership with the public entity to develop

the CSP project on a Build Own Operate Transfer (BOOT) model through the PPP Act No 4 of 2017.

NamPower wants to appoint a Transaction Advisor to assist with the CSP project. SAEP is in discussion with

NamPower for potential assistance to the NamPower team and its appointed advisory team. In June 2020,

SAEP provided support to CENORED on three documents targeted at the CSP project i) tariff financial

model, ii) PPA and iii) Direct Connection Agreement. During the reporting period, SAEP followed up with

NamPower Head of Generation Projects, Mr. Grant Muller, on the EOI submissions received for Transaction

Advisors that were due to NamPower on 6 November 2020. Mr. Muller agreed to follow up on the

NamPower approval process and potential transaction advisory assistance required from SAEP. SAEP is still

awaiting feedback from NamPower.

SOUTH AFRICA

▪ 600 MW Sasol Renewable Energy Program

Sasol South Africa Limited is driving an initiative for the Supply of Renewable Energy (RFO Ref 200511) with

an RFI issued in May 2020 for the supply of 600 MW of renewable energy to Sasol’s South African operations

so as to reduce its yearly Greenhouse Gas (GHG) emissions by about 1.6 million tons. SAEP is in discussion

with Sasol’s Category Manager: Utilities, Supply Chain, Mr. Piet van Staden, about SAEP assistance to Sasol.

Mr. van Staden is supportive of SAEP assistance to their program. By the end of November 2020, SAEP

provided a draft LOC to Sasol. As per the draft LOC, SAEP plans to participate in Sasol’s project team

discussions and communications, provide general transaction advisory services, such as the review of


documentation, provide inputs and make suggestions. SAEP will not lead any discussions and/or negotiations

with bidders and third-party entities. The Sasol project team is considering SAEP assistance and is expected

to provide feedback in Q2.

▪ 200 MW SunElex Solar Project

Following a direct request by Power Africa, SAEP started providing transaction advisory support to SunElex

in November 2020. SunElex is a South African developer in need of transaction advisory services for

development of their two-phase project: i) Phase 1: 200 MW PV and 40 MW storage under the South African

Public Procurement Program (RMIPPPP), and ii) Phase 2: 200 MW PV and 40 MW storage for Commercial

and Industrial (C&I) customers. The support consisted of developing a base case bankable financial model for

SunElex in its bidding process as well as developing a generic financial model that will be made available to

other developers. A document stating detailed model functionality was agreed on and attached to the LOC

which was signed by SAEP and SunElex on 13 October 2020. This document served as the guiding plan for

the development of the new financial model and greatly reduced the need for scoping calls between SunElex

and SAEP. SAEP submitted the model on 10 December 2020 and trained SunElex on the model’s functionality

during a call on 11 December 2020. SunElex responded with a number of change requests throughout the

week of 14 December 2020. SAEP’s final responses as well as the final model were submitted and agreed on

by SunElex on 17 December 2020 with no further feedback from SunElex.

ZAMBIA

▪ 90 MW Unika Wind Power Project

Mphepo Power is leading the development of the 90 MW Unika Wind Power Project in Zambia.

Implementation Agreement (IA) signature was targeted for Q3 of 2020, whereafter unsolicited PPA

negotiations with ZESCO can officially begin. The IA finalization and signature are currently outstanding. In

December 2020, a draft IA was provided to Unika from the Ministry of Energy’s Office for Promoting Private

Power Investment and at Mphepo Power’s request, SAEP is currently reviewing the draft IA.


3 COVID-19 IMPACT ON PROGRAM DELIVERY

In March 2020, the effects of the COVID-19 pandemic became a reality when many countries in Southern Africa

began imposing lockdowns and travel restrictions to minimize the spread of the disease. Unfortunately, by the end

of Q1, it was still not clear for how long existing lockdowns and travel restrictions will continue due to a second

wave of infections impacting all corners of the world. The pandemic is emerging as a prolonged and unique crisis

and responding to it has underscored the need for SAEP and counterparts in the region to accelerate the adoption

of agile ways of working and value chain transformation to help manage the uncertainty.

The following summarizes the major impacts of COVID-19 on Program delivery during Q1:

▪ Cancellation or postponement of meetings and workshops due to lockdowns and travel restrictions

▪ In-person meetings and workshops converted to virtual participation have at times lead to miscommunication

or misperceptions attributable to not being able to read body language or interpret facial expressions

▪ Cancellation or postponement of virtual meetings and workshops due to counterparts not being able to

commit to dates because of country or business restrictions as well as unreliable internet access

▪ Communication challenges as a result of counterparts having to work from home where some do not have

access to a personal or work computer or experience unstable internet connectivity

▪ A delay in some generation and connection projects advancing or reaching FC due to restrictions on

procurement- and environment-related activities. In some cases, electrification programs that SAEP is

supporting were quite dramatically delayed because of import delays for materials as well as projects starting

later than expected due to due diligence not being completed during the pandemic

▪ For the entire off-grid SHS market the poor economics of countries that were shut down and the difficulty of

importing products threaten the ability of SHS companies to meet revenue and cash flow requirements not

only from new sales, but from pay-as-you-go customers

In light of the COVID-19 pandemic, SAEP undertook a comprehensive review of its work plan activities and

approach to delivery to understand how it can help counterparts identify and mitigate COVID-related challenges,

develop and execute business continuity plans, and continue improving the overall energy sector in Southern

Africa. From this exercise, SAEP developed new activities to help counterparts begin to prepare for and address

the challenges of operating in a post-COVID-19 environment. Updates on these activities can be seen under the

outcome sections of this report.


APPENDIX A TRANSACTIONS TRACKER4

In Q1 FY21, SAEP’s Transaction Advisory team continued with the initiated conversations with different developers and supported the following projects

towards achieving the Program goals. The listed transactions are separated by type (i.e., connections, transmission, and generation).

Connections

Project Name Country Technology Est.

Connections Current Status

EDM Mozambique On-Grid 657,000

connections

EDM HCD

This project has progressed to the final stage of the HCD process with EDM, which

resulted in the development of three key solutions, namely i) improved community

relations, ii) improved customer service management, and iii) a more comprehensive

scheduling process to let customers know when to expect their connections. In Q1,

three key EDM board members approved the roadmap for implementing the

solutions and once the full BoD gives overall approval, SAEP and EDM will begin

rolling out the plan.

EDM EMU

SAEP conducted meetings with the EDM EMU team to review and assess the

performance of the EMU in accordance with the processes and procedures

developed by SAEP regarding planning, project management, financial management

and procurement. The assessment concluded that the EMU has successfully adopted

these processes. The next step is to assist EDM to reach out to the regional

delegations to fully integrate and coordinate the EMU processes in the electrification

activities company wide.

COVID-19 SUPPORT

SAEP supported EDM in compiling a Business Continuity Plan. Additionally, SAEP

focused on the key component of the assistance - the development of a cash flow

model, which contains a forecast of EDM's financial availability (i.e., revenue

generation in the coming periods vs. expenses). The model was applied under three

scenarios and its results will provide EDM an insight into the impact on its financial

position. In December 2020, SAEP presented the plan and the financial model to the

4 The transactions presented here are transactions that we are currently designing transaction advisory scopes for or are currently providing TTS to.




EDM COVID Task Force, which responded positively. The EDM finance department

will now integrate the model into its financial planning system.

ENDE Angola On-Grid 735,000

connections

SUPPORT TO ENDE (AFDB PROGRAM)

SAEP supported ENDE to complete the majority of ToRs to procure consultants for

the prepaid metering and revenue protection components of the loan.

ENDE also received a decision by the AfDB to proceed with the first phase of the

procurement process for the systems component (i.e., revenue protection). AfDB

granted No Objection to proceed with the pre-qualification stage of the revenue

protection systems procurement. Accordingly, ENDE published the invitation to

respond and has received 50 responses. ENDE held a pre-qualification meeting

(virtually) on 30 December 2020 which 45 interested companies attended. The

procurement process is moving forward as planned.

SUPPORT TO ENDE (WORLD BANK PROGRAM)

SAEP commenced assistance to ENDE in the development of the bid documents for

the World Bank Electricity Sector Improvement Project that will lead to 200,000

connections in Angola. This assistance included technical workshops to train ENDE

personnel to prepare the technical specifications for the revenue protection

component tender (Subcomponent 1.2: Revenue protection program).

LEC Lesotho On-Grid 29,682

connections

COVID-19 SUPPORT TO LEC

This activity is cancelled, due to a transition at the LEC new Board of Directors and

MD position. SAEP may reestablish support if the new Board and MD reengage with

the Program.

ANKA Madagascar Mini-grid 10,500

connections

SAEP is assisting ANKA in its effort to become a Power Africa Partner. The process

is not yet complete. ANKA also previously informed SAEP that they have started

construction of phase 1 of their AP2 project, which will connect to 2,500 households

by the end of the project. By the end of the quarter, SAEP had not yet received an

update on the commercialization date for the AP2 project. SAEP had previously

assisted ANKA with financial modelling and financial matchmaking for their AP2

project, and will assist with further model updates as and when needed.




Baobab+ Madagascar SHS 92,600

connections

Baobab+ is focused on maintaining business continuity despite COVID-related

movement restrictions. SAEP’s activity with Baobab+ was subordinated to those

considerations. SAEP attempted to assist Baobab+ to relieve the movement

restrictions but the assistance they received from the government was not effective.

SAEP will continue to assist Baobab+ in Q2 of FY21 to help the company connect

additional households despite COVID-related challenges.

Madagascar

Mini-Grid Grant Madagascar Mini-Grid 5,216

SAEP awarded grants totaling $1.2 million to three mini-grid developers under the

Madagascar Mini-Grid Development Grant on 23 November 2020. The virtual launch

event was well attended and included participation from the Madagascar Agency for

Rural Electrification Development (ADER) and the Ministry of Energy. The Minister

expressed his gratitude for the intervention and the impact it will have on the

development of mini-grids in Madagascar. Three companies were selected as grant

recipients, including two that are building PV based mini-grids and one that is

extending an existing hydro mini-grid to reach additional customers. Collectively, the

grant recipients will provide electricity connection to previously unelectrified

households and businesses. In Q2 of FY21, SAEP will work with the companies to

determine the type of technical assistance they require to achieve their stated

timelines.

Mozambique

Off-Grid

Companies

Mozambique SHS 100,000

connections

In Q4, SAEP held regular coordination calls with SHS companies in Mozambique to

check in on the state of their businesses and understand what support they need

from SAEP. These calls were also used to keep the companies informed about SAEP’s

progress with the fiscal incentives work and obtain company buy-in for SAEP’s

proposal to develop an econometric study that the government can use to inform

fiscal incentive decision making. SAEP sent the companies a survey to obtain data

required to complete the econometric study.

SHS Kick-Starter

Grant Malawi Solar

300,000

connections

SAEP held regular coordination calls with SHS companies in Malawi to receive

updates on the implementation of their business continuity plans. SAEP also continues

to receive regular updates from SHS Kick-Starter grantees on their progress toward

milestones in their implementation plans. In Q2 of FY21, SAEP will have discussions

with the companies based on their progress and determine whether the targets

should be adjusted.

Zambia Off-Grid

Companies Zambia SHS

702,509

connections

SAEP continued to support Fenix's team, now ENGIE Energy Access, in Zambia to

develop a plan to respond to continued foreign exchange and macro-indicator

deterioration. This included the submission of a draft engagement summary




document and an initial discussion on the implementation planning for strategic

response levers designed to maintain business operations despite macroeconomic

deterioration. SAEP will finalize a draft of the engagement summary document by the

end of the quarter and discuss any remaining inputs required for the implementation

plan with Fenix in January 2021. The development of the engagement summary, which

is a summary of the work that has been done and the scenarios developed, is a

culmination of months of assistance provided to Fenix to determine possible

trajectories for macroeconomic indicators in Zambia and possible response

approaches.

Transmission

Project name Country Technology Project size

[MW] Current Status

Estimated

Financial Close

Date

Mozambique–

Malawi

Cross-

border Transmission 1 000

The Mozambique–Malawi transmission interconnector

project, which entails the construction of a 218 km, 400 kV

high voltage alternating current transmission line and

associated substations, reached FC in July 2020. SAEP has

played an integral part in helping ESCOM transform its

operations and maintenance capabilities as the utility

prepares to deploy the 1,000 MW regional interconnector

project.

To prepare ESCOM to operate in an interconnected

system, SAEP laid out a series of technical assistance areas

focusing on transforming the utility’s operations and

maintenance capabilities to 400 kV. Over a course of

several months SAEP trained a total of 98 ESCOM control

and maintenance engineers and technicians on operations,

safety, and maintenance. In total, eight training sessions

were done virtually and concluded on 8 October 2020.

Going into Q2 of FY21, SAEP will continue with capacity

building efforts by providing ongoing refresher interventions

31-July-20

(FC Reached)



[MW] Current Status

Estimated

Financial Close

Date

on production optimization and operating in an

interconnected SAPP system. ESCOM submitting an FC

claim letter of confirmation as to the role and impact SAEP

has played on the project through its capacity building

efforts.

Temane

Transmission

Project (TTP)

Mozambique Transmission

450 (Gx)

900 (Tx)

On 10 December 2020, TTP achieved a major milestone

when all funders, namely the World Bank, Norwegian Trust

Fund, the AfDB, the IsDB, and OFID issued their letters of

effectiveness. This means that all conditions precedent for

the respective grants and loans to become effective have

been met. Construction of the 400 kV TTP transmission line

with a capacity of 900 MW totaling 563 km will be

completed by 2023 and is the first phase of the Mozambique

Integrated Transmission Backbone System Project. SAEP has

been supporting Mozambique’s national utility, EDM, in

bringing TTP to FC by providing an embedded advisor to

deliver long-term organizational and technical support since

2018. EDM agreed to issue out an FC claim letter

acknowledging SAEP’s assistance before end of Q2.

10-Dec-20

(FC reached)

Angola Central-

South Angola Transmission 1 000

SAEP is supporting Angola’s transmission company, RNT, to

manage the development of the AfDB-funded 343 km 400

kV transmission line that will interconnect central and

southern Angola. The construction of this transmission line

will allow for the evacuation of around 1,000 MW from

North to South and is critical to the Angola–Namibia

(ANNA) interconnection project, which will facilitate power

trade between the two countries and enable Angola to join

the SAPP for the first time. Key components of support

have been:

• Facilitating the operationalization of the RNT PIU,

which is critical for the management of the AfDB-

funded Angolan Central–South transmission system

project

8-Sep-20

(FC reached)



[MW] Current Status

Estimated

Financial Close

Date

• Training the RNT PIU to prepare tender documents,

evaluate proposals and draft evaluation reports

On 20 August 2020, the AfDB informed SAEP that the

ESEEP I project had obtained legal opinion and that the

Angolan court of audits had approved the loan agreement.

The AfDB loan was approved by its Board of Directors on

13 December 2019, became Effective on 8 September 2020,

and then consequently the approval of the proposed Work

Plan and Budget.

During Year 3, SAEP assisted RNT with the following

procurement processes that will conclude in Year 4:

Recruitment of the Owner’s Engineer

• Recruitment of the RAP) consultant

• Recruitment of Engineering Procurement Contractor

(EPC) recruitment

• Consultant to carry out the feasibility studies for Gove

Menongue

• Procurement of office IT equipment, office vehicles and

rental of office space

RNT PIU are currently finalizing the rental of the project

office space, with a target date to move in by mid-March

2021.

Going into the second quarter of 2021, the SAPP team

increase its assistance to each element of the RNT PIU with

the goal of meeting all AfDB loan milestones and deadlines,

SAEP will continue to provide close support as it guides

RNT through the process of procuring and onboarding

consultants (e.g., project manager, procurement specialist,

financial management specialist, environment, and social

specialist).


Generation

Project name Country Technology

Project

size

[MW]

Current Status

Estimated

Financial Close

Date

BPC Solar PV Botswana Solar PV 100

SAEP continues to provide support to BPC as procurement

advisors to advance the 100 MW solar procurement. After

significant changes to the procurement documentation,

which are confidential, the procurement closed in

December 2020. SAEP continues to support the ongoing

team meetings at BPC to advance the project and assist BPC

to update evaluation criteria to match the new project

details. Due to the COVID-19 pandemic, further discussions

will be held to determine how SAEP will directly support

BPC during the evaluation process, once bids are received.

Other information about the current status of this

procurement is sensitive and confidential.

30-Sep-21

Kalahari Energy

Coal Bed

Methane (CBM)

Botswana

Coal Bed

Methane

(CBM)

97

In June 2019, both Kalahari Energy (97 MW) and Tlou

Energy (2 MW) were awarded Preferred Bidder status for

the construction of a Coal Bed Methane (CBM) fueled, IPP-

owned power plant in Botswana. Sekaname (Pty) Ltd is

developing the 97 MW Kalahari Energy project. The award

follows the submission in October 2018 to tender "for the

development of a maximum of 100 MW CBM fueled pilot

power plants in Botswana as an IPP". Kalahari Energy intends

to enter a 30-year PPA with BPC; and the Government of

Botswana will provide a credit enhancement mechanism to

make the project bankable.

On 9 March 2020, a grant ceremony was held in Botswana

where the project received a USD $980,000 grant from the

USTDA. Some of the grant funding is targeted at the

appointment of a mining advisory entity for further work in

confirming the CBM resource.

On 23 June 2020, it was publicly announced that Botswana

has granted the country’s first-ever generation licenses to

IPPs. BERA allotted generation licenses to three IPPs for the

31-March-22



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

construction of power plants with a combined 827 MW

generation capacity. The license has a term of 15 years. The

three IPPs include:

• The Gaborone based Energy & Natural Resource

Corporation for the construction of a 600 MW coal-

fired power station

• Sese Power for a 225 MW coal-fired power station

• Tlou Energy for a 2 MW CBM gas and solar power

project

No mention was made of the 97 MW Kalahari Energy CBM

project.

In December 2020 Botswana’s Ministry of Mineral

Resources, Green Technology and Energy Security

appointed African Legal Support Facility (ALSF) as an advisor

to the Ministry. ALSF is currently working to develop a data

room that will contain the ITT documentation and other

project correspondence.

It is anticipated that PPA negotiations could potentially

commence in January 2021. This is positive news for the

project but various challenges remain as the negotiations will

be based on bids and tariffs for Round 2, with the Preferred

Bidder status awarded in June 2019.

SAEP is awaiting the completed SSIR and NDA from

Kalahari Energy.

Eswatini

Combined Cycle

Gas Turbine

(CCGT) Project

Eswatini

LNG

(Liquefied

Natural Gas

310

On 26 October 2020, the Eswatini U.S. Embassy

Political/Economic Chief, Mr. Mich Coker, asked SAEP to

provide inputs to the intended development of a 310 MW

Eswatini Combined Cycle Gas Turbine (CCGT) project that

involves a long-term PPA between the EEC and a private

developer.

(No confirmation)



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

On 28 October 2020, SAEP provided several

inputs/comments which were followed by a conference call

between SAEP, Mr. Coker and Ms. Jennifer Baldwin on 29

October 2020.

On 9 November 2020, Mr. Coker and Ms. Baldwin

discussed the fact that the project was unsolicited and the

costs to the government. Details of these conversations are

confidential.

RSSC Grid-Tied

Solar PV Plants Eswatini Solar PV 10

The former Royal Swazi Sugar Corporation (RSSC) is now

known as Royal Eswatini Sugar (RES). RES intends to

contract with an IPP for the financing, EPC, and operations

of a 10 MW solar PV facility with RES as the PPA off-taker.

Following a bidding process in FY19 Q3, RES subsequently

selected a preferred bidder for the solar PV project. SAEP

has engaged with the RES Energy Manager, Mr. Bongumusa

Tfwala and he stated the following:

• RSSC is awaiting a draft PPA from the preferred IPP for

consideration and input by RES in preparation for the

PPA negotiations

• RES intends to contract an advisor to provide, amongst

other services, technical and financial advisory services

• The preferred IPP is currently procuring the services of

an environmental consultant for the environmental

assessment of the project

• The preferred IPP may still need to formulate and

register the local company and make an application for

the generation and wheeling licenses

The COVID-19 travel restrictions have stalled progress on

this project and there are few developments for the

reporting period, though SAEP remains engaged with RES.

30-Jun-21

Neo1 -

OnePower Lesotho Solar PV 20

One Power is developing the Neo1 20 MW solar PV project

in Lesotho, which would be the first IPP in the country. In

May 2019, One Power received a grant from the United

States Trade and Development Agency (USTDA) to support

30-Jun-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

feasibility studies for the development of the 20 MW Neo1

solar PV project. While the PPA for the project was initiated

in 2017, the Implementation Agreement (IA) is being

negotiated for the Government of Lesotho through the

Ministry of Finance by the law firm Trinity with funding from

ALSF. SAEP has offered negotiation support to the Ministry.

In addition to financial model review, SAEP is examining

generation planning with LEC as well as the impacts of

renewable generations on Lesotho’s national grid.

One Power CEO, Dr. Matt Orosz indicated that corruption

charges in Lesotho, as well as COVID issues, have delayed

the project’s progress.

ALSF appointed Multiconsult as technical and financial

advisors to report to Trinity and help advise the

Government of Lesotho on the project.

Most land issues have been resolved and good progress is

being made with the IA negotiations. In October 2020, SAEP

followed up with the LEC on any views and progress on the

project and the intended signing of the IA. SAEP awaits a

response from LEC on this matter. Mr. Motzen indicated

that One Power awaits the government’s response to their

latest position on the IA.

Mazenod Lesotho Solar 40

Phanes Group is developing the 40 MW Mazenod and the

30 MW Mohale’s Hoek solar PV project in Lesotho. The

Mazenod project will follow and lag the development of the

Mohale’s Hoek project. In April 2020, Phanes stated that

they anticipate delays due to COVID-19 travel restrictions.

During follow-up communication between SAEP and Phanes'

Senior Communications & Marketing Manager, Mrs. Louise

Carne, in December 2020, Mrs. Carne reported that due to

renewed COVID travel restrictions the projects are delayed

and have not moved forward. She committed to share

30-Jun-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

updates as they are available and indicated she expects to

revise construction and commercial operation dates.

The developer made no progress during the reporting

period.

Mohale's Hoek Lesotho Solar 30

Phanes has signed a non-binding MOU with the Government

of Lesotho for the Mohale’s Hoek project, although LEC

does not currently have the project in its generation

planning. The next step is for Phanes to sign a binding MOU

with the Ministry of Energy, after which Phanes will enter

PPA negotiations with LEC. SAEP remains in contact with

Phanes while it discusses the Government’s approach to

developing new renewable projects.

During follow-up communication between SAEP and Phanes'

Senior Communications & Marketing Manager, Mrs. Louise

Carne, in December 2020, Mrs. Carne reported that due to

renewed COVID travel restrictions the projects are delayed

and have not moved forward. She committed to share

updates as they are available and indicated she expects to

revise construction and commercial operation dates. The

developer made no progress during the reporting period.

30-Jun-21

ANKA

Segments 2 & 3:

Madagascar

Madagascar Mini-grid 2.35

In April 2019, ANKA asked SAEP for additional support in

addressing a USD $1 million funding gap for ANKA’S mini-

grids under AP1. SAEP agreed to assist ANKA and proposed

several funding options to close the gap. ANKA managed to

secure all the funding it needed for segment 1 of their AP2

project. One of its existing financiers, who had already

committed a portion of the grant funding it needs, decided to

increase the grant amount to close the gap.

ANKA now needs SAEP assistance for segments two and

three of the AP2 project. SAEP introduced ANKA to several

sources of funding for engagement during ANKA’s next

fundraising round and will support ANKA in developing a

Segment 2:

12/31/2021

In respect of AP2

Scale North and AP2

Phase 1B+:

06/30/2021



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

structured plan for engaging funders during segments two

and three.

ANKA has eight mini-grids under construction that, when

commissioned, will bring ANKA’s total portfolio to 12 mini-

grids with a cumulative installed generation capacity of

350kWp. None of these new concessions were part of AP1

and AP2. ANKA requested support from SAEP to improve

how it communicates the company’s positive impact in the

energy sector.

Under the AP2 Phase 1B, ANKA is targeting two projects

with a cumulative value of EUR 6.5 million – the Scale North

(EUR 3.5 million) and AP2 Phase 1B+ (EUR 3 million)

project in the South. ANKA intends to reach FC for these

two projects by Q3 of FY21 and commissioning by Q4 of

FY22.

ANKA is primarily focused on its current projects, but

expects to shift focus to AP2 phases two and three with the

goal of reaching FC by Q1 of FY22.

Connection numbers are not confirmed yet as ANKA must

first finalize the projects and grid studies.

SAEP followed up with ANKA during November and

December 2020 on updates and awaits a response from

ANKA.

Themis Sahofika Madagascar Hydro 192

The Sahofika Hydropower Project (the “Project”) will be a

205 MW hydropower plant located on the Onive River in

Madagascar, being developed by Eiffage, Eranove and Themis

(the “Consortium”). On 2 December 2016, the Consortium

signed a Project Development Agreement with the Ministry

of Water, Energy and Hydrocarbons to design, finance,

build, operate, and maintain the project. In addition to the

power plant, the project also involves the construction of a

110 km transmission line to the site, as well as camp

facilities and 112 km of access roads.

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

During the reporting period, SAEP concluded its support to

Themis by finalizing an economic assessment model and

accompanying report.

Kanengo Solar Malawi Solar 20

Atlas Energy was considering developing the 20 MW

Kanengo Solar PV project—one of four potential projects

short-listed by the government in the Lilongwe area.

This project is ON HOLD. The developer made no

progress during the reporting period.

31-Dec-21

Lilongwe Solar Malawi Solar 25

The solar PV projects in the Lilongwe area are delayed by

land issues.


progress during the reporting period.

31-Dec-21

Luweya River

Phase 1 Malawi Hydro 15


progress during the reporting period. 30-Sep-21

Mbongozi Power Malawi Hydro 41

Hydro Electric Power Limited (HE Power) is developing the

41 MW Mbongozi Hydropower plant in Malawi. HE Power

and the Ministry of Energy signed an IA in October 2013 and

HE Power and ESCOM signed a PPA in June 2018. In

December 2018, EGENCO provided HE Power with a non-

binding EOI for EGENCO’s potential participation in the

development of, and investment in, the project. SAEP has

been assisting EGENCO with transaction advisory support

and inputs as well as a due diligence report, which was

presented to EGENCO in July 2019.

Following an additional request from EGENCO Director of

Planning & Development, Mr. Labren Songhi, SAEP

submitted an updated due diligence report to EGENCO in

March 2020. In August 2020, SAEP reviewed and

commented on an offer letter EGENCO received from HEP.

During a follow-up discussion between SAEP and Mr. Songhi

in November 2020, Mr. Songhi stated that EGENCO has

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

considered all issues that were raised and discussed, and

submitted the project to the Ministry of Energy of Malawi.

EGENCO is awaiting feedback from the Ministry of Energy.

EGENCO will revert to SAEP with feedback and further

required assistance.

Mpatamanga

Hydro Electric

Project

Malawi Hydro 350

SAEP support to the development of the Government of

Malawi’s (GoM) Mpatamanga hydropower project continues

following the release of the full Request for Proposals (RFP)

for project sponsor to the prequalified bidder on 25 August

2020.

During this period, SAEP supported GoM with the following

activities:

• Broker an agreement between GoM and its initial legal

counsel, HSF, to have HSF continue work on

commercial agreements at risk

• Advance the negotiations of key commercial

agreements between GoM and IFC, addressing

outstanding issues on the PPA, IA, and Relationship

Agreement Term Sheet

• Oversee a new advisor responsible for preparing a

study on an alternate dam type design and reviewed the

final reports. This included the ensuing discussions with

IFC technical teams to prepare for newly identified

geotechnical studies as required by the report

• Prepare for and host five bidders’ videoconferences

• Facilitate a range of conversations between GoM and its

E&S consultant in support of the ongoing revision to the

ESIA, Biodiversity Action Plan (BAP), and RAP including

“on the ground” engagements with the local

subcontractor, C12

• Support the drafting and review of an application to IDA

for a Project Preparation Advance (PPA), which is

expected to provide up to USD $6 million of early-stage

debt for additional development activities

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

• Support GoM’s procurement for legal counsel for the

remainder of the development period and until the

project reaches FC by advising on Expressions of

Interest (EOI) evaluation to compile a shortlist of

bidders

• Continue to engage with the new E&S and technical

consultants and review their inception and technical

reports, including facilitating three monthly progress

calls between the consultant and the GoM Task Force

• Support the Bidder in conducting two site visits while

navigating nuanced travel regulations during the

COVID-19 pandemic

Golomoti Solar

PV plus Storage Malawi

Solar PV plus

battery

storage

18

JCM is developing the 18 MW Golomoti Solar and Battery

Storage project. The USTDA grant awarded in 2018 was

targeted at covering costs through FC, including the

feasibility study and ESIA. JCM started the overall feasibility

study for Golomoti towards the end of October 2018.

The project is still under early development as JCM needs

ESCOM to better understand the incorporation of storage

into the system before PPA negotiations can begin. JCM

signed a PPA with ESCOM on 14 September 2018 for the

solar component of the Golomoti project and will address

the storage component of the project under a revised PPA.

JCM is also busy with the development and construction of

the 60 MW Salima solar PV project in Malawi, which

reached FC in January 2019.

The developer made no progress during the reporting

period.

31-Dec-21

Nchalo Solar

IPP Project Malawi Solar 10

Illovo Sugar Malawi (ISM) wishes to procure a 20-year PPA

with a third party IPP for a10 to 15 MW solar PV project.

The installation will be sited on the Nchalo Sugar Estate on

land owned by ISM. ISM will be the sole offtaker under a

business-to-business arrangement.

30-Jun-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

The power from the solar PV plant will feed directly into the

ISM-owned substation, after the ESCOM meter and into the

ISM-owned grid. ESCOM will continue to feed power to the

sugar estate when the solar plant is not capable of doing so.

The purpose of the project is to offset expensive utility

power and augment power during the hot dry months when

ESCOM "load-limits" ISM.

Illovo evaluated bids from third party producers and

selected Mulilo as the preferred bidder and Illovo as the

reserve bidder for the development of the solar plant.

SAEP previously tasked legal firm Cliffe Dekker Hofmeyr

(CDH) for a legal review of the regulatory framework in

Malawi and Zambia where Illovo Sugar intends contracting

with IPPs.

Based on the review, SAEP raised regulatory clarification

questions to CDH as to what options are potentially be

allowed under the regulations. There are different

definitions of what is allowed for a “customer” and for a

“consumer”. A PPA may be allowed for a customer, while

an Energy Supply Agreement (ESA) may be allowed for a

consumer. On 13 October 2020, CDH submitted a

Supplementary Memo on Section 21(3) of the Malawian

Electricity Act. In November 2020, SAEP and Illovo Sugar

Group Legal Counsel – Commercial, Vicki Hobson,

discussed the following as a potential way forward:

• Illovo Sugar to proceed with the grid stability study

• IIlovo Sugar files for a license to buy as a bulk consumer

• SPV/IPP files for a generation license

Nkhotakota

Solar IPP

Project

Malawi Solar 26

In February 2019, ESCOM signed a PPA with Phanes Energy

Renewables Nkhotakota Ltd for this 26 MW solar power

project in Nkhotakota. OPIC approved a USD $50 million

loan for the program. Site preparation began in September

2019, though construction did not begin right away.

FC was 31-Dec-19

COD expected 30-

Jun-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

Construction was further delayed due to COVID-19 related

lockdowns during April and May 2020. During the reporting

period, SAEP discussed the project directly with Phanes’

Senior Communications and Marketing Manager, Ms. Louise

Carne, who reported that the team has returned to the

construction site and they anticipate a commercial operation

date in June 2021.

Buroma Hydro Mozambique Hydro 200

SAEP has held follow-up discussions with Mr. Paulo

Dambusse Marques Ratilal, one of the project sponsors, and

Mrs. Rita Faria, Tora Holdings Representative. SAEP

requested copies of the financial model, IA, and PPA in

order to review and provide comments to Tora Holdings,

but has yet to receive the documents. SAEP and Tora

Holdings’ financial advisor have arranged to discuss the

document request and potential support from SAEP.

The developer made no progress during this reporting

period.

31-March-22

Lupata Hydro Mozambique Hydro 600

SAEP requested copies of the latest financial model, IA and

PPA in order to review and provide comments to Tora

Holdings, but has yet to receive the documents. SAEP and

Tora Holdings’ financial advisor have arranged to discuss the

document request and potential support from SAEP

The developer made no progress during this reporting

period.

31-March-23

(Outside SAEP

program)

NACALA

Combined-Cycle

Gas Turbine

project

Mozambique LPG 400

Nacala Power Limitada (Nacala) is developing the 400 MW

CCGT project in Mozambique. As per the framework

agreement between Nacala and the Ministry of Energy of

Mozambique, the project scope has been changed from 450

MW (50+200+200 MW) to a 400 MW (200+200 MW)

CCGT project. The project configuration includes a single

200 MW train with three gas turbines and one steam

turbine producing 200 MW of power to be transmitted

from the power station to Nacala Velha substation and then

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

on to Namialo substation. The project targets to ultimately

distribute the full 400 MW generated at Nacala on the

northern grid. The project plays an important role in

stabilizing the power balance and supply to the northern

grid of Mozambique, and will mitigate long line brown-out

outages and save power losses on single direction long

transmissions. FC is scheduled for FY21 Q3.

Nacala is seeking an IPP partner to come on board now. An

opportunity also exists for earlier energy supply. During the

reporting period, SAEP facilitated further discussions

between Nacala and the interested entities. Communication

between Nacala and the IPPs has been positive to date and

the parties are currently proceeding with further due

diligence and deeper discussions.

Further details are confidential at this stage.

Dondo Solar Mozambique Solar 50

Phanes Group was developing the project. EDM

subsequently decided to put the project out on open tender.

The European Commission, together with the French

Development Agency (AFD) is supporting the country’s

Projeto de Promoção de Leilões para Energias Renováveis

(PROLER) auction scheme for renewable energies. The

PROLER scheme is targeting, three 40 MW solar plants in

the districts of Dondo, Manje and Lichinga and one 40 MW

wind project in Inhambane

Phanes intends bidding for the Dondo project under the

PROLER scheme process once the tender is released. The

transaction is currently ON HOLD.

31-Dec-21

Mandimba Solar Mozambique Solar 50

The Phanes Group is developing the 50 MW Mandimba

solar PV project and has entered a non-binding MOU. The

next step is to sign a binding term sheet to form the basis of

the PPA followed by the framework agreement with the

Ministry of Energy. SAEP has been in touch with Phanes but

until further progress is made, Phanes does not require

30-Jun-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

SAEP assistance. The developer made no progress during

this reporting period.

Lichinga Solar Mozambique Solar 23

The Phanes Group was developing the project, however,

EDM subsequently decided to put the project out on open

tender. Phanes intends bidding for the project once the

tender is released. The transaction is currently ON HOLD.

31-Dec-21

Naamacha Wind

Farm Mozambique Wind 60

eleQtra is developing the 120 MW Namaacha wind IPP

located in the Namaacha District in southern Mozambique.

The AfDB awarded USD $400,000 to the project for legal

fees and the USTDA a of $2 million grant. This plant will be

among Mozambique's first utility-scale wind power plants.

During communication between SAEP and EleQtra Project

Leader, Mrs. Lauren Thomas, she stated that due to certain

issues, like the need for bankable data, project development

has been stalled. eleQtra has contracted LIDAR and

Geotech to assist with the technical studies.

31-Mar-22

Baynes Hydro

Power Project Namibia Hydro 600

NamPower plans to build one of the highest concrete faced

rock fill dams (CFRD) in Africa. The Angola Namibia

Permanent Joint Technical Commission (PJTC) is jointly

developing the 600 MW Baynes Hydropower Project (300

MW allocated to Namibia and 300 MW allocated to Angola)

on the Cunene River Basin approximately 40 km

downstream from the Epupa Falls. Although FC date is

anticipated to be after SAEP’s March 2022 end date, SAEP

previously considered providing high-level support but after

careful consideration, opted not to participate due to the

estimated FC date being outside of the program period.

FY22 Q4 / FY23 Q1

(Outside SAEP

program)

CENORED Namibia

Solar PV and

Battery

storage

10MW

Solar +

10MWh

storage

CENORED intends running a bidding process for the

installation of solar PV grid-connected systems located at

various sites throughout the CENORED distribution area,

with emphasis on one of the sites (preferably Tsumeb)

having a 10 MW solar PV plant with all sites developed on

an IPP basis. The integration of a 10MWh battery storage

system is envisaged as a net phase following on the solar PV.

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

SAEP assisted CENORED with a review and comments for

potential improvement of the i) tariff financial model, ii) PPA

and iii) Direct Connection Agreement.

CENORED is seeking a USTDA grant to fund the feasibility

study for a potential 2 MW power/8 MWh capacity battery

system (BESS) coupled with a 5 MW PV asset (project) at

the Tsumeb site and potentially one other site, within its

distribution network but interconnected to a NamPower

(i.e., transmission) substation. The feasibility study will

confirm the applicability of the sites for PV and/or BESS

system, to promote technical feasibility of the system’s

integration in the grid, update the cost benefit analysis,

identify all appropriate BESS services and contracting

structures and provide other valuable information to

CENORED to consider and prepare a request for proposal

for a third party owned PV and BESS project.

quartering Q1, SAEP assisted CENORED to draft a Concept

Note for the grant motivation to the USTDA.

Oshakati

Premier Electric

(OPE)

Namibia Solar PV 5

Oshakati Premier Electric (OPE), an electricity distributor in

Namibia, intends facilitating the addition of a new 5 MW

solar PV plant to be embedded in its network. FC for the

project is anticipated by 31 December 2021.

In December 2020, SAEP had virtual workshops with OPE

CEO Mr. Bennodictus Sheehama and Deloitte Namibia Risk

Advisory Manager, Mr. Brown Kawana to discuss various

commercial structuring options. These options include i)

self-generation, ii) IPP generation and iii) an IPP approach led

by OPE shareholding.

SAEP is awaiting the submission of the SAEP SSIR from OPE.

31-Dec-21

City of Cape

Town Rooftop

PV SSEG

Program

South Africa Solar 50

The City of Cape Town intends assisting residents in

targeted areas with the installation of circa 50 MW rooftop

solar PV facilities. SAEP previously provided several financing

options to the City of Cape Town. One of the options was

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

the solar financing model known as the Property Assessed

Clean Energy (PACE) program.

The City is working through the financial model to

determine scenarios and sensitivity analyses. In August 2020,

SAEP updated the model based on the City’s request. For

the initial project, the targeted number of households has

been reduced from 10,000 to between 2,000 and 3,000

installations. The City has developed a proposal which it will

present to the relevant decision makers within the City’s

council. There is no progress to report for Q1.

Wonderkop

Smelter South Africa EE 40

The project consists of a smelting process that will include

capturing and converting process heat to electricity in an

Organic Rankine Cycle (ORC) system. The installed capacity

of the plant is estimated at 40 MW. SAEP has been in

discussions with project developer, Development Consult.

The owner of the smelter, Glencore, intends funding the

pre-feasibility study and will submit the pre-feasibility study

report to their Board if the results indicate commercial

benefits justifying major investment and a 15-year agreement

with an IPP.

The Wonderkop project is ON HOLD until a decision has

been made following the outcome of the feasibility study.

31-Mar-22

Mondi - Biomass

/ Cogen Richards

Bay plant

South Africa Biomass 48

Mondi has excess power at its 48 MW biomass generation

facility in Richards Bay, South Africa. IES Energy, working on

behalf of Mondi, has been pursuing power sales

opportunities to absorb this excess power that was

previously being sold to Eskom. SAEP is providing high-level

support to Mondi with finding potential off-takers from

Mondi’s existing 48 MW biomass facility. SAEP has been in

discussions with IES Energy Director, Mr. Dave Long, to

assess Mondi's interest and options for potential

participation in the Risk Mitigation IPP Procurement

Program (RMIPPPP). However, two items in the RMIPPPP

disqualifies the existing 48 MW facility to participate: i) a

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

requirement of capacity of between 50 and 450 MW and ii)

only new capacity being allowed.

Mondi did not submit a bid into the RMIPPPP on 22

December 2020. SAEP followed up with Mondi in Q1 and is

awaiting feedback on the project’s latest status and progress.

Redstone Solar

Thermal Power

project

South Africa Solar 100 No progress reported during the reporting period.

Estimated 7/31/2019

(This will not be

reported as FC until

further details are

collected on this

project)

IPP Global South Africa Gas-to-Power

Project 200

IPP Global, a U.S. company based in Houston, Texas, plans

to develop a 200 to 250 MW gas-to-power project in

response to the RMIPPPP RFP. SAEP offered transaction

advisory support to IPP Global’s bidding process should the

company decide to participate and continue with bid

preparation.

IPP Global did not submit a bid into the RMIPPPP on 22

December 2020. This project is ON HOLD.

31-Dec-21

Sunelex:

Matjhabeng

Solar

South Africa Solar 450

Sunelex is a South African renewable energy developer

developing the 450 MW Matjhabeng solar PV Complex in

the Free State province of South Africa. The Complex is

being developed in two distinct phases, as follows:

• The Public Procurement Phase entails the development

and operation of a 200 MW solar PV power plant with

an accompanying 40 MW Battery Energy Storage

System (BESS). It is envisioned that this power plant will

generate electricity for supply to the South African

national grid under the RMIPPPP and/or any other

public procurement program

• The Commercial & Industrial (C&I) Phase entails the

development and operation of a 200 MW solar PV

power plant with the accompanying 40 MW BESS. It is

envisioned that this power plant will generate electricity

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

for supply to South African industrial customers via

wheeling and use of system agreements

SAEP entered into an LOC with Sunelex on 9 October 2020

for transaction advisory support to Sunelex with the

RMIPPPP bidding process. The support included developing

a financial model and reviewing and assessing the ESIA. SAEP

submitted the model to Sunelex on 17 December 2020.

Sunelex did not submit a bid for the RMIPPPP on 22

December 2020.

Arcelor Mittal

South Africa

(AMSA) Solar

PV Energy

Procurement

South Africa Solar PV 160

ArcelorMittal South Africa (AMSA) is a JSE-listed steel

producer. On 29 June 2020, AMSA released a request for

information (RFI) to IPPs to build, own and operate solar PV

power plants across its six operational sites with a total

capacity of 160 MW. The deadline for submissions was 28

August 2020. AMSA is currently evaluating RFI responses

whereafter it will issue a RFQ to shortlisted entities

together with the detailed technical scope of work.

Ultimately, AMSA intends entering into PPAs with the

successful bidder(s). The IPPs will be required to conduct all

prefeasibility, “bankable” feasibility studies, environmental

impact assessments and other surveys required to confirm

financial and technical viability of the facilities. The IPPs will

be responsible for obtaining all governmental, regulatory,

and legal permits and licenses required for implementation

of the solar PV plants.

SAEP is in discussion with AMSA for potential assistance

Note: SAEP will not lead any discussions and/or negotiations

with bidders and third-party entities

31-Mar-22

Sasol Renewable

Energy

Procurement

South Africa

Renewable

Energy (Solar,

Wind, Hydro,

etc)

600

In May 2020, Sasol South Africa issued a RFI for the supply

of 600 MW of renewable energy to its South African

operations to reduce its yearly greenhouse gas (GHG)

emissions by about 1.6 million tons.

31-Mar-22



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

SAEP shared a draft LOC with Sasol in November 2020.

Sasol Category Manager: Utilities, Supply Chain, Mr. Piet van

Staden is in principle supportive of SAEP assistance to their

program but will need to discuss it within the Sasol project

team. SAEP is currently awaiting feedback from Sasol.

Note: SAEP will not lead any discussions and/or negotiations

with bidders and third-party entities.

Kabompo Hydro Zambia Hydro 40

Copperbelt Energy Corporation (CEC) is developing the 40

MW Kabompo hydropower project in Zambia.

In March 2020, CEC reviewed the project to lower the cost

and come up with an acceptable tariff. CEC stated that the

project has not been suspended but is currently being

redesigned with the process expected to be completed end

of the year.

No progress reported during the reporting period. The

transaction is ON HOLD.

31-Dec-21

Ngonye Falls

Hydro Zambia Hydro 180

Western Power Company (WPC) is a Zambian IPP

developing the 180 MW (4 x 45 MW) Ngonye Falls

hydroelectric power station along the Zambezi River at

Ngonye Falls.

The project will need to build a substation and some length

of line to join to the ZESCO line/substation. The connection

of the project to the grid is, however, still reliant on an

additional transmission line to be financed/done by ZESCO

to strengthen the network as the plant will not be able to

evacuate with the current network.

ZESCO has budgeted for the required transmission line in

2022 connecting the Ngonye Falls Hydro to the ZESCO

network. Western Power is considering including these

transmission line costs in its project capital costs to fund the

ZESCO transmission line. Irrespective of the funding,

ZESCO will still own and operate the transmission line and

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

developed 100% as per ZESCO specifications. ZESCO has

committed to sharing technical specs with Western Power.

The project currently ON HOLD subject to securing

additional development finance.

Gigawatt

Zambia Hybrid

Project

Zambia Hybrid RE/EE 71

No progress made by developers during the reporting

period.

The transaction is ON HOLD.

30-Jun-21

GET FiT Zambia

Round 1 – Small

Solar

Zambia Solar 120

SAEP previously had an embedded advisor supporting the

Global Energy Transfer Feed-in Tariffs (GET FiT) Secretariat

with this solar round. Zambia received a USD $34.8 million

full funding commitment from the German development

bank KfW to implement Round 1 of the GET FiT Program.

GET FiT Zambia is a cooperation Program between the

Government of Zambia, ZESCO Limited, the Energy

Regulation Board (ERB), the African Trade Insurance Agency

(ATI) and KfW. It focuses on the promotion of small grid-

connected RE generation projects between 1 to 20 MW and

is expected to connect an additional 200 MW of RE facilities

to the national grid over the next five to seven years.

In April 2019, the Zambia Ministry of Energy awarded solar

PV projects with a combined capacity of 120 MW to six

IPPs. This followed the Zambian government's launch of a

tender for an additional 100 MW of solar PV under the GET

FiT solar framework. The maximum size of each project is

20 MW, to be procured over a period of three years. The

three-joint venture (JV) companies, each developing two

solar PV projects under the GET FiT program are:

• JV of Building Energy & Pele Green Energy (PGE)

• JV of Globeleq & Aurora Power Solutions (APS)

• JV of InnoVent & CEC

The selected developers expressed concern and discomfort

with the PPAs bankability and credit risk. This is in view of

ZESCO’s financial situation and as such, the developers

31-Dec-21



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

requested letters from the Government of Zambia to

confirm its support.

Project DELAYED until discomfort and “bankability”

concerns of selected developers have been addressed.

GET FIT

Zambia Round 2

- Mini Hydro

Zambia Hydro 100

SAEP provided critical technical support to the Zambian

Energy Regulatory Board (ERB) to develop feed-in tariffs for

mini-hydro projects. Following ERB approval of the

methodology, inputs and financial model developed in

collaboration with SAEP, the ERB was able to calculate feed-

in tariffs for the 100 MW-window of mini-hydros expected

to be procured during Round Two of KfW’s Zambia GET

FiT program. On 6 May 2019, GET FiT Zambia announced

the 30 pre-qualified bidders for round two and in November

2019, the Zambia Ministry of Energy announced that it had

granted feasibility study rights to 22 developers within the

framework of the GET FiT Zambia mini hydro tender.

However, the hydro component is currently not moving

forward in part, due to the issue of PPA credit risk. There

have been meetings between the GET FiT Secretariat and

Ministry of Energy of Zambia, but no firm commitments yet.

It seems that the Secretariat would rather see FC on the

solar projects first, before making tangible movement on

hydro.

Project DELAYED until uncertainty and “bankability”

concerns of selected developers have been addressed.

31-Mar-22

Unika Wind

Mphepo Power Zambia Wind 100

Mphepo Power is developing the 90 MW Unika wind power

project in Zambia. On 21 November 2019, Mphepo installed

a 120-meter meteorological mast to measure the wind

potential for the wind power project. Mphepo Power CEO,

Mrs. Linda Thompson, approached SAEP to discuss short-

and medium-term funding needs. SAEP subsequently

facilitated a formal introduction between the U.S.

International Development Finance Corporation's (DFC)

Private Enterprise Officer, Julius Svoboda and Mphepo.

During a conference call on 25 June 2020, Mrs. Thompson

31-Mar-22



Project

size

[MW]

Current Status

Estimated

Financial Close

Date

shared various project details with DFC. Following the call,

Mr. Svoboda distributed DFC guidelines on key elements of

a clean energy business plan, which will be an important

element for Mphepo to consider for further funding

discussions with DFC.

In November 2020, Mrs. Thompson stated that Mphepo had

submitted the feasibility study to the Ministry of Energy in

Zambia and the evaluation team had done a site visit.

Mphepo is now waiting feasibility study approval and will

then commence with Implementation Agreement (IA)

discussions. ZESCO still has a moratorium on PPA

discussions and is currently not negotiating with any IPPs.

Mphepo plans to engage with ZESCO once the feasibility

study is approved.

In December 2020, the Ministry of Energy Office for

Promoting Private Power Investment provided Mphepo with

a draft IA. SAEP is currently assisting Mphepo with a review

of the IA. The finalization of the IA is targeted for the end of

December 2021, and the FC date is targeted for March

2022.


APPENDIX B SOUTHERN AFRICA PRIORITY TRANSMISSION PROJECTS


APPENDIX C PERFORMANCE MONITORING & EVALUATION TABLES

The table below shows the FY21 Q1 results of the Program indicators, attributable to SAEP’s efforts.

Number of Transactions Reached Financial Closure [PA6]

FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 Year 4

Total

Total to

Date

Life of

Project Data Source: Written confirmation from FMM party

Target 2 0 2 1 5 31 37

Note:

Mozambique

• Temane Transmission Project (TTP) with

900 MW reached FC

Deviation Narrative: SAEP had expected to report

the Malawi-Mozambique Interconnector as having

reached FC in Q1. The transaction has reached financial

close but due to some changes in ESCOM leadership

delayed the receipt of the supporting documentation.

Actual 1 1 29 37

(#AA) Capacity (MW) from Transactions Supported by SAEP that Achieved Financial Closure [1 / PA1] 5


Total

Total to

date

Life of

Project

Data Source: Written confirmation from Financial

Mobilization Memo (FMM) party

PATT and SAEP transaction tracker

Target 1,900 0 150 100 2,150 3,567.38 4,000

Note:

Mozambique

Temane Transmission Project (TTP) with 900 MW

reached FC

5 GCC indicator is “Clean energy generation capacity (MW) that has achieved financial closure (4.8.2-33)” This indicator includes both our target for 3000 MWs generation and 1000 MWs of new

transmission capacity


(#AA) Capacity (MW) from Transactions Supported by SAEP that Achieved Financial Closure [1 / PA1] 5


Total

Total to

date

Life of

Project

Data Source: Written confirmation from Financial

Mobilization Memo (FMM) party

PATT and SAEP transaction tracker

Actual 900 900 4,201.38 4,000






Utilization of Risk Mitigation Tools [PA16]


Total

Total to

date

Life of

Project

Data Source: Written confirmation from IFI or

government.

Target 2 0 2 1 5 31 37 Note:

Mozambique

• Temane Transmission Project (TTP) used

Sovereign Guarantee






Actual 1 1 29 37


Number of Transactions Pending Financial Closure [PA5]


Total

Total to

date

Life of

Project

Data Source: Power Africa Transaction Tool and

SAEP transaction list.

Target 39 39 39 39 39 39 39

Note:

At the end of Q1 there were 38 transactions that

were in the pipeline and had not yet reached financial

close.

This total excludes those transactions that have reached

financial close and those that are currently on hold.

Actual 38 38 38 57

Generation and Transmission capacity (MW) pending financial closure [2 / PA2]


Total

Total to

date

Life of

Project Data Source: Written confirmation from Financial

Mobilization Memo (FMM) party. PATT and SAEP

transaction tracker Target 13,949.27 13,949.27 13,949.27 13,949.27 13,949.27 11,478.50 4,000

Actual 10,046.37 10,046.37 10,046.37 4,000

Note:

As at the end of Q1 SAEP has a pipeline of 5,844.97

MW and 4,201.38 MW that had reached FC through

the life of the project.

Note: The actual figure is cumulative and shows the total

generation and transmission capacity pending financial

closure at the end of the reporting quarter.

Deviation Narrative: The total pipeline of active

transactions that SAEP is currently working with,

tracking, or had assisted to reach financial close and

commercial operation has continued to grow through

the years as more transactions form part of the SAEP

basket of transactions.

Gx 7,146.37 7,146.37 7,146.37 3,000

Tx 2,900 2,900 2,900 1,000


Number of New Grid and Off-Grid Projected Direct Connections [5 \ PA5]


Total

Total to

date

Life of

Project

Data Source: Program records for OC4 and utility/

government official publications.

Target

1,114,986

922,221

722,999

502,552

1,220,319

2,130,000 3,000,000

Note: Projected connections are based on access

transactions.

On-grid

• EDM: 385,809

• ENDE: 585,000

Off-grid

• Madagascar (10,500 for Mini-Grid)

• Malawi: 135,691

• Mozambique: 65,052

• Zambia: 177,112

Actual 1,381,664 1,381,664 1,381,664 3,000,000

(#AB) Direct Electricity Access [4 / PA10]


Total

Total to

date

Life of

Project



Target 105,333 192,765 199,222 220,447 717,767 1,015,014 3,000,000

Note:

The reported connections for Q1 are a result of

SAEP’s activities in Malawi, Mozambique, and Zambia.

Off-grid:

• Malawi: 15,221 individual off-grid

connections

o Solar Home Systems sales:

15,221

o Lanterns sales: 0

• Mozambique: 7,671 individual off-grid

connections

Actual 105,333 105,333 1,015,014 3,000,000

Off-Grid 41,142 41,142 441,685 N/A


(#AB) Direct Electricity Access [4 / PA10]


Total

Total to

date

Life of

Project



On-Grid 64,191 64,191 573,329 N/A


7,671

o Lanterns sales: 0

• Zambia: 18,250 individual off-grid

connections


18,240

o Lanterns sales: 10

On-grid:

• Mozambique: 64,191 connections

Number of Transactions Commissioned [PA4]


Total

Total to

date

Life of

Project Data Source: SAEP Installation Memos.

Target 5 0 7 0 12 16 27 Note:

South Africa

• Excelsior Wind with 33 MW reached COD

• Golden Valley Wind with 120 MW reached

COD

• Kangnas Wind Farm with 136.7 MW reached

COD

• Nxuba Wind Farm with 140 MW reached

COD

• Zeerust Solar Park with 75 MW reached

COD

Actual 5 5 16 27

Generation Capacity (MW) Commissioned [3 / PA3]


Total

Total to

date

Life of


Target 372.72 0 493.2 0 865.92 1,242.68 2,265.38 Note:


Generation Capacity (MW) Commissioned [3 / PA3]


Total

Total to

date

Life of


Actual 504.7 504.7 750.6 2,265.38

South Africa

• Excelsior Wind with 33 MW reached COD

• Golden Valley Wind with 120 MW reached

COD

• Kangnas Wind Farm with 136.7 MW reached

COD

• Nxuba Wind Farm with 140 MW reached

COD

• Zeerust Solar Park with 75 MW reached

COD

Deviation Narrative: Three transactions which

were not in the initial basket of transactions expected

to reach COD this quarter, ended up reaching COD.

The three transactions are Kangnas Wind Farm,

Nxuba Wind Farm and Excelsior Wind. Also, three

transactions which were in the initial basket of

transactions expected to reach COD this quarter

experienced delays and are expected to reach COD

at a later stage.

Electricity Loss Reduction (Aggregate Losses) / Aggregate Losses: Total technical and non-technical electricity losses [6 / PA12]


Total

Total to

date

Life of

Project

Data Source: Data collection with utilities (survey

for annual data collection).

Target 0 0 0 0 0 0 0 Note: SAEP did not anticipate reporting results for

this indicator in Q1.

Actual 0 0 0 0


Expected Lifetime Energy Savings from Energy Efficiency or Energy Conservation [7 / PA13]


Total

Total to

date

Life of

Project Data Source: Program records for OC2 and OC4.

Target 0 0 0 3,600 3,600 1,224 1,224 Note: SAEP did not anticipate reporting results for

this indicator in Q1.

Actual 0 28,358.74 1,224

Total Public and Private Funds Leveraged by USG for Energy projects (USD millions) [17 / PA18]


Total

Total to

date

Life of

Project Data Source: Grant records. Project funding records

Target 586.6 0 95 150 831.6 5,943.6 7,232.6 Note:

Mozambique


900 MW reached FC (US $551.6M)


the Malawi-Mozambique Interconnector (US $35M) as

having reached FC in Q1. The transaction has reached

financial close but due to some changes in ESCOM

leadership delayed the signing of the supporting

documentation.

Actual 551.6 551.6 5,241.5 7,232.6

Number of Institutions with Improved Capacity [11]


Total

Total to

date

Life of

Project

Data Source: Program records. Organization

assessment capacity tool

Target 0 0 0 15 15 48 61 Note: SAEP did not intend on reporting any

institutions for Q1.

Actual 0 0 43 61


Number of Women in Energy Sector Leadership Roles (Custom) [12]


Total

Total to

date

Life of

Project

Data Source: Program records. Energy institution

records and interviews

Target 0 1 1 1 3 6 12 Note:

SAEP did not anticipate reporting results for this

indicator in Q1

Actual 0 0 4 12

(#Y) Number of Laws, Policies, Strategies, Plans, or Regulations Officially Proposed, Adopted, or Implemented [8 / PA15]


Total

Total to

date

Life of

Project

Data Source: Record of laws, policies, strategies, or

regulations

Target 2 0 0 0 2 28 31

Note: SAEP has no report for laws, policies,

strategies or regulations proposed, adopted and/or

implemented for Q1

Deviation Narrative: The laws that were initially

planned to be reported in Q1 are still work in

progress and are expected to be reported in the

coming quarters. Actual 0 0 32 31

Number of Reports, Analysis, Reviews, Action Plans, Tools Developed and Campaigns and Trips Implemented (Custom) [9]


Total

Total to

date

Life of

Project Data Source: Program records

Target 12 11 11 11 45 132 205

Note: SAEP produced the following reports in Q1:


Actual 14 14 169 205

• SAEP Regulatory Support to Provide

Disconnection Relief for Customer Non-

payment - Y3.C19.01.01.13.REG

• SAEP Regulatory Advisory to Regulatory

Authorities on Recording of COVID-Related

Expenditures - Y3.C19.01.01.15.REG

• Issues in evaluation of tariffs -

Y4.01.01.07.REG

• Analysis: eSwatini electricity company’s tariff

application - TASK 1: Determine Reasonable

Rate of Return and Weighted Average Cost

of Capital for the Eswatini Electrical

Company - Y4.01.01.09.SWA


application - TASK 2: Evaluate the

Regulatory Asset Base and Working Capital

Requests of the eSwatini Electricity Company

- Y4.01.01.09.SWA


application TASK 3: Review the manpower

register of the eSwatini Electricity Company

as a part of evaluating the company

application for a change in tariffs -

Y4.01.01.09.SWA


application TASK 4: review of the draft

evaluation by the eSwatini electricity

regulatory authority of the application of the

eSwatini Electricity Company for a change in

tariffs - Y4.01.01.09.SWA

• Mozambique RTM Tool V5 (Instruction user

guide) – Y4.04.06.08.MOZ

• Mozambique Introduction to RTM Tool V5 –

Y4.04.06.08.MOZ

• Malawi SHS Kickstarter Reports –

SolarWorks - Y4.04.06.06.MWI

• Malawi SHS Kickstarter Reports – Vitalite -

Y4.04.06.06.MWI


• Malawi SHS Kickstarter Reports –

YellowSolar - Y4.04.06.06.MWI

• Malawi SHS Kickstarter Reports – Zuwa -

Y4.04.06.06.MWI

• Transaction Advisory services summary -

Mpatamanga and Themis Sahofika

(CrossBoundary) - Y4.04.01.04.MWI

Number of People Receiving Training in Global Clean Energy [13a]


Total

Total to

date

Life of

Project Data Source: Training Attendance Sheets

Target 37 38 38 37 150 1,088 1,313

Note: SAEP conducted the following training activities

in Q1.

Angola

• Change Management Workshop with RNT

(30 people trained for 120 Hours)

Deviation Narrative: For Q1 there was only one

training planned and conducted. The targeted number

of attendees couldn’t be more than the number that

attended due the facilitators having to observe

COVID protocols.

Actual 30 30 1,044 1,313

Male 25 25 846 788

Female 5 5 198 525


Number of Person-Hours of Training [13b]


Total

Total to

date

Life of

Project Data Source: Training Attendance Sheets

Target 296 304 304 296 1,200 8.950 10,750 Note: SAEP conducted the following training activities

in Q1.

Angola

• Change Management Workshop with RNT

(30 people trained for 120 Hours)

Deviation Narrative: The training was planned to

be a 6-hours training but due to COVID-19, training

was conducted virtually which now reduced the

training hours to 4 hours.

Actual 120 120 8,597.5 10,750

Male 100 100 7,054.5 6,450

Female 20 20 1,820.5 4,300

(#X) Percentage of RFP Section F Deliverables Submitted in a Timely Manner (Custom) [10]


Total

Total to

date

Life of

Project Data Source: Program records

Target 100% 100% 100% 100% 100% 100% 100%

Note:

Actual 100% 100% 100% 100%


Kilometers of Power Lines Reached Financial Close [PA8]


Total

Total to

date

Life of

Project Data Source: Written confirmation from FMM part

Target 778 0 0 0 778 781 1,166 Note:

Mozambique


900 MW reached FC (560 km)


the Malawi-Mozambique Interconnector (218 km) as

having reached FC in Q1. That transaction has

reached financial close but due to some changes in

ESCOM leadership delayed the signing of the

supporting documentation.

Actual 560 560 903 1,166

National Energy Mix Showing % of MWs from Clean Energy Technologies in Each Country [PA7]


Total

Total to

date

Life of

Project Data Source: PA PIRs; RERA national data

Target 0 0 0 0 0 0 0 Note:

SAEP did not anticipate to report anything for this

indicator for this quarter.

Actual 0 0 0 0

Kilometers of Power Lines Constructed or rehabilitated [PA9]


Total

Total to

date

Life of

Project Data Source: Written confirmation from FMM part

Target 0 0 0 0 0 0 0 Note:

SAEP did not anticipate to report anything for this

indicator for this quarter.

Actual 0 0 0 0


Greenhouse Gas (GHG) Emissions Reduced, Sequestered, and/or Avoided (thousand tCO2e) [PA14]


Total

Total to

date

Life of

Project

Data Source: Program records, using the USAID

CLEER Tool

Target 354.9 0 461.6 0 816.5 1,169.6 1,169.6

Note:

South Africa

• Excelsior Wind (33 MW Wind Transaction)

– 31.4 tCO2e

• Golden Valley Wind (120 MW Wind

Transaction) – 114.3 tCO2e

• Kangnas Wind Farm (136.7 MW Wind


• Nxuba Wind Farm (140 MW Wind


• Zeerust Solar Park (75 MW Solar

Transaction) - 71.4 tCO2e

Deviation Narrative: Three transactions which

were not in the initial basket of transactions expected

to reach COD this quarter, ended up reaching COD.

The three transactions are Kangnas Wind Farm,

Nxuba Wind Farm and Excelsior Wind. Also, three

transactions which were in the initial basket of

transactions expected to reach COD this quarter

experienced delays and are expected to reach COD

at a later stage.

Actual 480.7 480.7 1,093 1,169.6

US Exports Supplied for Clean and Cleaner Energy Projects [PA17]


Total

Total to

date

Life of

Project Data Source: Program documents

Target 0 0 0 0 0 0 0 Note:

SAEP has nothing to report for this indicator this

quarter.

Actual 0 0 N/A N/A


Partner Commitment Tracking ($ million USD) [PA19]


Total

Total to

date

Life of


Target 0 0 0 0 0 1,137 N/A Note:


quarter.

Actual 0 1,137 N/A

Estimated number of Beneficiaries: Number of beneficiaries with anticipated access to connections


Total

Total to

date

Life of


Target 4,364,707 3,618,860 2,842,068 1,967,569 4,842,469 0 N/A

Note:

On grid

• EDM: 1,697,560

• ENDE: 1,357,200

Off grid

• Madagascar: 49,350

• Malawi: 610,610


• Zambia: 903,271

Deviation Narrative: The targeted figure for

estimated number of beneficiaries (4,364,707) was

exceeded by 613,762 due to the fact that more

beneficiaries benefitted from the connection access

Actual 4,978,469 4,978,469 4,978,469 N/A

Estimated number of Beneficiaries: Number of beneficiaries with actual access to connections


Total

Total to

date

Life of


Target 477,762 745,847 776.792 874,499 2,874,901 0 N/A Note:


Actual 3,004,648 3,004,648 4,268,077 N/A

FY18 (326,937)

Off grid


• Zambia: 308,555

FY19 (1,112,433)

On grid

• EDM: 367,431

Off grid


• Malawi: 52,037


• Zambia: 618,451

FY 20 (Q1 and Q2 = 1,087,516)

On grid

• EDM: 400,347

• ENDE: 244,178

Off grid

• Malawi: 52,821


• Zambia: 329,067

FY21 Q1

On grid

• EDM: 282,440

Off grid

• Malawi: 68,495


• Zambia: 93,075

Deviation Narrative: The reported number in Q1

reflects FY18, FY19 and FY20Q1 and Q2 cumulative

number (2,526,886) plus the achieved number in

FY21Q1 (477,762) which now sums up to 3,004,648

reported under FY21Q1.


Number of competitive procurement processes for new generation capacity implemented with USG Power Africa assistance


Total

Total to

date

Life of


Target 0 0 0 2 2 0 N/A

Note:


quarter.

Actual 0 0 2 N/A

Number of host-government power sector strategic planning documents adopted, implemented, or revised, with U.S. Government (USG) Power

Africa support


Total

Total to

date

Life of


Target 0 0 0 0 0 0 N/A Note:


quarter.

Actual 0 0 0 N/A

New electricity capacity committed for regional trade through bilateral agreements


Total

Total to

date

Life of


Target TBD TBD TBD TBD TBD 0 N/A Note:


quarter.

Actual 0 0 0 N/A


Number of U.S. companies that participate in Power Africa outreach events


Total

Total to

date

Life of




quarter.

Actual 0 1 N/A

Number of U.S. companies participating in Power Africa Projects/Transactions


Total

Total to

date

Life of




quarter.

Actual 0 2 N/A

APPENDIX D PARTICIPANT TRAINING REPORT

Country Training & Capacity Building Activity Date Number

of Males

Number

of

Females

Total

Number of

Participants

Hours of

Training

Person-

Hours of

Training

Angola Change Management Workshop with RNT 5 November 2020 25 5 30 4 120

Total 25 5 30 4 120


DASHBOARD FOR Q1 FY21 RESULTS OF SAEP ORGANIZED TRAININGS

Number of People Receiving Training in Q1 FY21 (Actual vs. Target)

Person-Hours of Training in Q1 FY21 (Actual vs. Target)

Gender Disaggregation of Training Participants in Q1 FY21

Performance to Date for FY21 Trainings Against the Annual Target


APPENDIX E QUARTER 1 SUCCESS STORIES

USAID Helps Three Southern African Utilities Connect Over Half a Million New

Customers to Electricity

Electric utilities have a critical role to play in the growth of the

power sector and the economic development of Southern

Africa. A well-managed and financially viable utility is vital to

increasing generation, transmission and distribution capacity and

connecting new customers. Utilities in the region have been

struggling to meet the connection targets that were set as part

of their growth strategies as well as required by their respective

governments’ electrification plans. To meet these targets in a

sustainable way, utilities must focus efforts on improved project

finance and management skills and processes, more efficient

procurement practices, and proactive customer engagement and

management, which will reduce losses, improve revenues and

successfully connect more customers to electricity.

To help utilities in Southern Africa confront challenges across their value chains, the USAID Southern Africa

Energy Program (SAEP), a Power Africa initiative, works hand-in-hand with utilities to address:

▪ Growth: delivering electricity to consumers through transmission and distribution expansion and

connection programs

▪ Performance: adopting monitoring and evaluation performance tools

▪ Transformation: focusing on improving utility planning processes and management by developing

strategic plans and implementing innovative approaches

SAEP’s focus on transferring skills and knowledge to utilities is key for development, self-reliance and

sustainable human and institutional capacity. The following projects illustrate how SAEP is helping to improve

utilities’ approaches and capacities to decrease commercial losses, enhance human capital and connect new

households and businesses to electricity.

Empresa Nacional de

Distribuição de Electricidade

(ENDE), Angola

Lesotho Electricity Company

(LEC), Lesotho

Electricidade de Moçambique

(EDM), Mozambique

Th

e C

hallen

ge

In 2019, Angola’s distribution

company, ENDE, had 1.8 million

customers across 18 distribution

centers, yet only 600,000

customers are connected to paid

electric meters with the remaining

customers billed according to

monthly average consumption. To

assist Angola in reaching its 60

percent electrification target by

2025, the African Development

Bank (AfDB) announced a

multimillion-dollar loan to ENDE

for the rollout of a prepaid

metering program.

The appointment of a new board of

directors and senior management

team in 2018, as well as a need to

bring an external perspective into

the organization’s strategy

formulation, prompted the LEC to

request SAEP’s assistance in

building a five-year strategic plan

that would improve the utility’s

performance and help it to hit its

goals.

The Government of Mozambique

has set an ambitious electrification

target of a 100 percent

electrification rate by 2030.

National utility, EDM, mandated

with the achievement of this target,

is looking at better ways to manage

the national electrification program

and to “connect” with its existing

and potential customers by

establishing an electrification

management unit (EMU) and

improving customer management.

Th

e A

pp

roach

To help ENDE develop and

implement internal systems and

processes required to install over

1.2 million prepaid meters under

the AfDB’s energy program, SAEP

assisted ENDE in the design and

set-up of a Project

Implementation Unit (PIU). The

▪ SAEP worked with the LEC to

develop an updated strategic

plan that includes initiatives with

budgets and direct linkages to the

company’s fiscal strength, directing

funding to achievable priority

projects. To assist in the successful

implementation of the plan,

SAEP cooperated with EDM to

design, set up and

operationalize the EMU. The

EMU supports the management,

planning and implementation of the

electrification program in a cost-

efficient and sustainable manner.

The EMU has successfully adopted


Empresa Nacional de

Distribuição de Electricidade

(ENDE), Angola

Lesotho Electricity Company

(LEC), Lesotho

Electricidade de Moçambique

(EDM), Mozambique

PIU manages all aspects of the

program, including the

procurement and installation of

prepaid meters and supporting

infrastructure. SAEP is working

with the ENDE PIU by providing

technical advisory services and

on-the-job training to prepare

the required tender packages

and will support ENDE in evaluating

tender submissions. Additionally,

SAEP is supporting ENDE with the

World Bank Electricity Sector

Improvement Project, which

involves assisting ENDE to prepare

tender documents and review bids

for the installation of 7,000 smart

meters to high value customers.

Given the breadth of these

programs, SAEP is proposing an

electrification coordination unit to

improve electrification

planning and management and

implementation.

SAEP worked with the LEC to

develop executive compacts, which

are formal performance

agreements between executives

and the board, reviewed the LEC

executive structure, and developed

a process for the revision of the

remainder of the structure, which

had been in a transitional stage

since 2016. Since the adoption of

the strategic plan, the executive

team has focused funding on

achievable priority projects.

processes and procedures

developed by SAEP regarding

planning, project management,

financial management and

procurement. SAEP is also working

with EDM to implement a

human-centered design (HCD)

approach to increase customer

centricity and support new

connections. EDM identified three

key focus areas based on the HCD

process to improve customer

engagement. These solutions have

been developed into an

implementation roadmap and will

be rolled out in mid-2021. Read

more on the HCD process here.

Th

e I

mp

act

SAEP’s support and technical assistance contributed to EDM, ENDE and the LEC connecting almost

570,000 households and businesses to electricity

between March 2019 and December 2020, with another 600,000 connections expected

by December 2021.

https://powerafrica.medium.com/improving-electricity-utility-customer-management-in-mozambique-through-human-centered-design-9efe4dcf3fe4


USAID/Power Africa Grant Program Helps Solar Home System Companies Connect

Thousands of Malawians to Electricity

“I use candles or paraffin lamps for lighting. This makes it difficult for my children to do their homework at night,” says

Chrissy Kasawe who lives in Chalendewa village in Malawi. Living without electricity is the reality of

approximately 3.2 million Malawian households. Energy supply has been a growing concern in in the country.

Economic growth and development crucially depend on the long-term availability of energy from sources that

are affordable and accessible. To accelerate access to electricity, the USAID Southern Africa Energy Program

(SAEP), a Power Africa initiative, launched the Solar Home System (SHS) Kick-Starter Program for Malawi in

July 2019. The Program awarded a total of USD $2 million of results-based grant funding to four SHS

companies: SolarWorks!, VITALITE, Yellow and Zuwa Energy. By December 2020, the four companies had

connected nearly 58,000 households to electricity.

Why SHS?

The SHS solution is an off-grid electrification method

that is flexible, easy to deploy and affordable by the

poorer population segments. A typical system

comprises a solar panel, battery, radio and light bulbs.

By placing the panel in sunlight during the day, the

solar energy can be stored (in a small battery) and

then used to power lights and small appliances6,

thereby providing electricity access to the household.

SHS can be rolled out quickly, making it an attractive

solution for electrification, particularly in rural and

sparsely populated areas.

The Malawian SHS market has been slow to mature,

with only a few companies active in the country. To

unlock the potential of the off-grid sector, SAEP

launched the SHS Kick-Starter Program, providing

financial assistance and operational support to private

sector SHS companies up to June 2021 to help them scale operations and sales in rural and urban

communities.

The Journey So Far

SAEP tailored its support for each company based on their

respective needs and through ongoing consultation with the

companies. The grant program commenced with SAEP providing

project management skills training to VITALITE and SolarWorks!

while support to Zuwa Energy and Yellow consisted of business

operations planning. In 2020, the main focus was on sales force

effectiveness training and on building companies’ capacity to design

strategies for the recruitment and retention of sales agents. SAEP

also trained the companies to use a route-to-market geospatial

tool, adapted to the Malawian market. Developed by SAEP, the

tool assists companies to formulate strategies for scaling

operations while optimizing return on sales. Throughout the grant

period, the companies submitted quarterly milestone reports to SAEP highlighting successes and challenges and

reporting the quarterly SHS sales figures. On submission of these reports, SAEP disbursed funds to the

participating companies.

Since 2019, the companies have expanded business operations and widened their distribution networks,

reaching remote areas in Malawi that previously had no access to electricity. Some highlights that have

contributed to an increase in SHS sales and connections:

6 The size and number of appliances that SHS include depends on the size of the panels and batteries.

“So far the supervisors and

managers who received the sales

training have found it very useful

and are already adopting and

implementing some ideas from the

training around sales pitching, sales

planning, agent recruitment and

agent motivation.”

Mr. Jones Ntaukira, Chief Executive

Officer, Zuwa Energy

Most SHSs have small radio and mobile phone

charging devices that are powered by a solar panel

and battery. Photo credit: USAID SAEP

https://www.usaid.gov/powerafrica/malawi

https://www.usaid.gov/malawi/news/power-to-the-people

https://www.solar-works.co.za/

https://web.facebook.com/vitalitemw/?_rdc=1&_rdr

https://www.yellow.africa/

http://zuwaenergymw.com/

https://pdf.usaid.gov/pdf_docs/PA00WPCX.pdf

https://pdf.usaid.gov/pdf_docs/PA00WPCX.pdf


• Business expansion: SolarWorks! established its main

office and warehouse in Lilongwe and now has a total of six

operational shops. VITALITE became more established in the

central region where they opened up three sales and service

centers. Yellow opened a new office in Blantyre (first office

was in Lilongwe); this has allowed the company to recruit

agents and sell units in the southern region. Zuwa was able to

open four new shops, including one that caters for the large

unelectrified population in Mchinji District located 100

kilometers west of Lilongwe and bordering Zambia. The

companies also recruited full-time staff members and

established dedicated operational teams to support

distribution networks across the country.

• Sales agent recruitment and skills development: In total, the companies deploy around 700

sales agents across the country. The growth in the number of sales agents not only increases

companies’ reach and sales, but also enhances the livelihoods of local agents by increasing their

earnings. Through SAEP’s sales force effectiveness training, companies have focused on extending

sales knowledge and skills to their agents.

• Marketing and product innovation: The

companies regularly conduct product

demonstrations and promotions, as well as

community outreach activities to explain the

benefits of SHS. Additionally, all companies

have active social media platforms where

new products, successes and vacancies are

published. Some grantees also launched

innovative products like solar television

systems and smartphones as part of their

product range to help underserved

communities enter the digital world.

• Partnerships: Through the growth of their

businesses, some SHS companies established

key partnerships with mobile service

providers like Airtel Money and Telekom

Networks Malawi to collect monthly

instalments through mobile payments, and

this makes it easier for customers to pay

their monthly bills. Zuwa entered into a

partnership with the Malawian post office that entails using existing post offices in rural and peri-urban

areas as points of sales.

The onset of the coronavirus pandemic in March 2020 had a negative impact on operations and sales. The

grantees were not able to continue with business as usual; shops had to be closed, door-to-door sales were

limited and access to stock ordered from across borders was delayed. Taking into account the impact of

COVID-19 on SHS companies, SAEP modified the SHS Kick-Starter grant milestones and disbursement

schedule to include the submission of a business continuity report, which triggered a disbursement of funding,

to ease the SHS companies’ liquidity constraints. Additionally, SAEP provided updates to SHS companies on

the limited relief funding opportunities available to support business continuity during this time.

The Impact

The SHS Kick-Starter Program is enabling SHS companies to strategize, expand operations, recruit and retain

sales agents, and increase household connections to electricity in Malawi. One of the almost 58,000

connections achieved so far is that of VITALITE customer, Chrissy Kasawe: “Ever since I was introduced to solar,

I am very happy as my children are now able to get their homework done and study even at night. Also, I am able to

charge my phone and listen to the radio at any given time together with my family.”

The core objective of SAEP’s support is sustainability. SAEP’s training focuses on enhancing the skills of the

companies’ trainers in order to encourage continuous skills development amongst the companies’ staff. The

SHS Kick-Starter will continue to have life-changing impacts beyond the three-year grant period by improving

the living standards of rural households and enabling income generating activities for communities in Malawi.

One of Zuwa's new shops. Photo

credit: Zuwa Energy

SolarWorks! has added solar TVs to its product

offering. Photo credit: SolarWorks!


APPENDIX F ORGANIZATIONAL CHART & RESOURCES

SAEP Organizational Chart as at 31 December 2020


APPENDIX G SAEP TEAM TRAVEL DURING QUARTER 1

In March 2020, the President of South Africa announced a “hard lockdown” of 21 days, which began on 26

March 2020. The lockdown meant that South Africa closed all international borders with limited access and

movement of their citizens for essential goods and services.

Through the months that passed, South Africa moved through various levels of lockdown. Although

international flights resumed to a number of countries around the world, certain countries are divided into

three risk groups according to their relation to South Africa’s risk level and based on the same criteria – high-

risk, medium-risk, and low-risk.

On 28 December 2020, South Africa moved into an advanced level 3 lockdown due to resurgence of the

coronavirus which meant that South Africa had entered a “second wave”. The new reported cases impacted

on travelers to and from South Africa resulting in several countries imposing travel bans to and from South

Africa. The current level 3 will be reviewed on 15 February 2021. The Logistics team will remain in regular

contact with the travel agent and continues to monitor the situation as to when international borders will

reopen to high-risk counties.

Due to this unprecedented lockdown, there has been no project-related international or regional travel during

the current reporting quarter of 1 October to 31 December 2020.


APPENDIX H SAEP PARTNERS LIST FOR POWER AFRICA

PARTNERS

Entity supported by SAEP

/Power Africa

(in alphabetical order)

Project Country Power Africa

Sector Partner?

Access 130 MW Access Zambia One Pensulo

Wind Project Zambia Yes

AKUO Energy 2.9 MW Solar PV Generation to

replace HFO-LFO Madagascar No

AMEA Power

100 MW AMEA Power Wind Zambia

Intends to apply to PA

partner

ANKA (EOSOL) Solar PV & Mini-grids Madagascar

Intends to become PA

partner; Application

submitted and in

process

APR Energy

400 MW Nacala Combined-Cycle Gas

Turbine (CCGT) Mozambique No

Aurora Power Solutions

GET FiT solar: Globeleq & Aurora

Power Solutions Aurora Sola One &

Two – 20 MWac

Zambia No

Baobab Plus

SHS Madagascar

No

Also being supported

by PAOP in West

Africa. Should target to

be a PA partner

Botswana Power

Corporation (BPC) BPC Solar PV Botswana No; Govt utility

Building Energy

GET FiT solar: Bulemu East & West–

20 MWac

Zambia No

CENORED

Solar PV & Battery Storage;

8-10 MW Okahanja Solar PV Namibia No

City of Cape Town

50 MW City of Cape Town Rooftop

PV SSEG Program South Africa No; Govt

City of Windhoek (CoW)

Electrification Project Namibia No

Copperbelt Energy

Corporation (CEC)

GET FiT solar: Garneton North &

South Solar 20 MWac each Zambia No

Department of Energy of

South Africa; REIPPPP

Various Round 3 & Round 4 IPP

projects;

Redstone 100 MW Solar CSP

South Africa No; Govt

Development Consult Wonderkop Smelter Energy Efficiency;

Plettenburg Bay Waste-to-Power; South Africa No

EGENCO

41 MW Mbongozi Hydro Malawi No

Enel Green Power / Enel

Group (Formerly ENEL of

Italy, Enel Italy)

50 MW Ngonye Solar PV Zambia YES, PA Partner

Energy4all Mozambique SHS

Mozambique No

Eleqtra

120 MW Namaacha wind Mozambique

No

A partner that should

probably be

approached



/Power Africa



Sector Partner?

Fenix International SHS Zambia, Mozambique Zambia

Mozambique Yes

Gigawatt 230 MW Gas fired Gigawatt Park

Phase 2

Mozambique

No

Gigawatt Global (GWG) 71 MW Gigawatt Zambia Hybrid

Project Zambia

YES, PA Partner

GLA Energy

250 MW Rovuma Gas

Mozambique

No

Globeleq Temane Transmission Project (TTP) Mozambique YES, PA Partner

Government of Malawi

Mpatamanga Hydro Malawi No; Govt

Government of Eswatini 10 MW EEC Lavumisa Solar PV Eswatini No; Govt

Government of Zambia

50 MW GET FiT Zambia Round 1 –

Solar PV;

100 MW GET FiT Zambia Round 2 -

Mini Hydro

Zambia No; Govt

Green Building Africa (GBA)

Swaziland

10 MW Nsoko Solar PV;

20 MW Riverbend Solar PV Eswatini No

Kalahari Energy

97 MW Kalahari Energy CBM Botswana No

Kalahari GeoEnergy Limited,

Zambia

10 MW Kalahari GeoEnergy

Geothermal CBM Zambia No

Illovo Sugar

15 MW Nchalo Solar PV Malawi No

InnoVent GET Fit solar: Garneton North &

South Solar 20 MWac each Zambia No

Intelligent Energy Zambia Ltd

(IEZL) 100 MW Kumi Kumi Zuba Solar PV Zambia

JCM Capital (JCM)

60 MW Salima Solar PV;

18 MW Golomoti Solar PV (plus

storage)

Malawi YES, PA Partner

Mondi Mondi Richards Bay Electricity Export South Africa No

Mphepo Power Ltd

(Western Power (Zambian),

Buffalo Energy (English), OAK

consulting CC (South

African), Chewa

Development Trust

(Zambian))

Unika Wind Mphepo Power Zambia

No; none of the

consortium are

partners

Nacala Power Limitada

400 MW Nacala Combined-Cycle Gas

Turbine (CCGT) Mozambique No

One Power

20 MW Neo1 Solar PV Lesotho

No; but Gigawatt

Global involved and is

a PA Partner

Oshakati Premier Electric

(OPE) 5 MW Solar PV Namibia No

Pele Green Energy GET FiT solar: Bulemu East & West–

20Mwac Zambia YES, PA Partner



/Power Africa



Sector Partner?

Phanes Group

30 MW Mohale’s Hoek Solar PV

40 MW Mazenod Solar PV

21 MW Nkhotakota Solar PV

20 MW Kanengo Solar PV

50 MW Mandimba Solar PV

23 MW Lichinga Solar PV

50 MW Dondo Solar PV

Lesotho

Malawi

Mozambique

YES, PA Partner

Royal Swaziland Sugar

Corporation (RSSC) 10 MW Solar PV Eswatini No

Solar Reserve (US based

entity)

50 MW (5x10 MW) West Rand Solar

PV (Solar Reserve Urban Solar Farm) South Africa No

SolarWorks! SHS Malawi

Mozambique

No, but would be a

good partner to

approach

Sumitomo & IHI 100 MW Temane Sumitomo CCGT Mozambique No

Sunelex 200 MW Sunelex: Matjhabeng Solar

South Africa No

Themis 192 MW Themis Sahofika T-Line Madagascar

No, but Yes through

Denham Capital

ownership

Tlou Energy

Lesedi CBM Botswana No

Tora Holdings 210 MW Boroma & 600 MW Lupata

Hydros Mozambique No

Upepo Energy Partners

100 MW Kanyama Hybrid

(96 MW Wind & 4 MW Solar PV) Zambia YES, PA Partner

Vitalite SHS SIAZ SHS Expansion Program

Malawi Kick-Starter grantee

Zambia

Malawi

No, but they would be

a good company to

look at

Voltalia 25 MW Lilongwe Solar PV Malawi (Made application in

July 2018)

West Rand Municipality

West Rand Solar PV (Solar Reserve

Urban Solar Farm) South Africa No; Govt

Western Power Company 180 MW Ngonya Falls Hydro Zambia No

Yellow Solar SHS Malawi Kick-Starter grantee Malawi No

Zuwa Energy SHS Malawi Kick-Starter grantee Malawi No

As at 31 December 2020


APPENDIX I DETAILED ACTIVITIES PROGRESS YEAR 4 WORK PLAN

OUTCOME-SPECIFIC ACTIVITIES

Below are the outcome-specific activities from the SAEP Year 4 Work Plan. This table is to track the status of the activities and to highlight any activity changes, timing changes

or other major items related to activities that the SAEP team would like to highlight for the period. All activities with an * next to them are priority activities as outlined in the

SAEP Work Plan.

OUTCOME 1

Activity No Activity Title SAEP Activity

Manager(s)

Start–End Date Reasoning

/ Buy-in

Linkages /

Dependencies


Intervention 1.01

ANGOLA

Y4.01.01.01.ANG

IRSEA: Develop Licensing Rules and Procedures

David Jankofsky, Tom Herbert

12/01/2020 -1/29/2021 03/31/2021

IRSEA Request

Y3.01.01.01.ANG - Angola Roadmap for

regulator enhancement

• Process for Issuance and revocation of Licenses

Not yet started

Y4.01.01.02.ANG* IRSEA: Plan to Eliminate Subsidy for

Electricity by 2025

David Jankofsky 04-01-2021

09/30/2021

IRSEA

Request

Y3.01.01.01.ANG -

Angola Roadmap for

regulator enhancement

• Completion of subtasks

and ultimate migration

plan to eliminate subsidies

Not yet started

Y4.01.01.03.ANG IRSEA: Receive Briefing from Prodel, RNT, ENDE on Plans

David Jankofsky 10/1/2020 - 12/31/2020 02/28/2021

IRSEA Request

Y3.01.01.01.ANG - Angola Roadmap for regulator

enhancement

• Report on Briefing Results and Possible Follow Up Action Plan

Not yet started

Y4.01.01.04.ANG* IRSEA: Review ANG Electricity Law

and Propose Regulations for IRSEA

David Jankofsky, Tom

Herbert

10/1/2020 -

11/30/2020 01/31/2021

IRSEA

Request

Y3.01.01.01.ANG -

Angola Roadmap for regulator enhancement

• Proposed regulations to

allow IRSEA to implement its part of Law

In progress: SAEP

commenced with the implementation of the first of four main activities as set out in the roadmap; a review and

provision of recommendations on Angola’s Draft Presidential

Decree on the Regulation of

the Generation, Transmission, Distribution and Commercialization of

Electricity (Decree No. 56/2016), to promote alignment with the Angolan

Electricity Law. Furthermore,



Manager(s)


/ Buy-in

Linkages /

Dependencies


SAEP, with the support of consultants, prepared and transmitted a table

categorizing the IRSEA comments as accepted, rejected, or pending additional

action. The recommendation was to have IRSEA originate any additional text required

for those classified as “pending additional action.” IRSEA acknowledged receipt of

SAEP’s recommendations on 26 November.

ESWATINI

Y4.01.01.09.SWA Eswatini Rate Case Support David Jankofsky 11/03/2020-01/29/2021 ESERA Request

N/A • Commentary on each part of Rate Case

Completed: ESERA requested SAEP’s assistance in evaluating the EEC’s

application for a change in tariffs for the financial years 2021–22 and 2022–23 (filed

on 30 October 2020). The assistance was supplied in the form of four tasks:

1. Determine a reasonable Rate of Return and Weighted Average Cost of Capital (WACC) for EEC,

2. Review EEC’s Regulatory Asset Base (RAB), 3. Review EEC’s Manpower

register; and 4. Review EEC’s overall allowed revenue and

adjustment rate, as well as the

proposed cost-reflective and subsidy rollout plan as

proposed by the ESERA staff in its proposed order.

MOZAMBIQUE

Y4.01.01.10.MOZ* Mozambique Electricity Act TA David Jankofsky 10/01/2020-09/30/2021 SPEED+ transition activity

4.01 • Detailed work plan for MNRE to advance the Act

Completed: On 8 December 2020 USAID Mozambique requested SAEP’s comments



Manager(s)


/ Buy-in

Linkages /

Dependencies


• Briefing materials to support MNRE efforts

• Training materials for

parliamentarians

on the latest draft of Mozambique’s proposed Electricity Act. With the

support of SAEP technical consultants, Márzio de Moura and Ernesto Johannes, a

report to this effect was submitted to USAID Mozambique on 11 December

2020.

Y4.01.01.11.MOZ* ARENE Institutional Framework Development


10/01/2020-09/30/2021 Continuation of SPEED+

TA

Y3.01.05.01.MOZ • Determine ARENE's role in evaluating RE projects

• Basic set of regulatory rules and procedures

• Proposed organogram

and cost estimates for staff

• Review TOR for ARENE

website

Not yet started: Following regular communications with

ARENE throughout the quarter, significant changes and updates to the ‘roadmap’

to support ARENE’s Institutional Development have been made.

The most recent updates are from the period 24 November to 31 December 2020. SAEP and its Technical Consultant,

Ernesto Johannes, updated the roadmap and identified 3 priority activities:

1. Support ARENE (as needed) in activities related to the PROLER Procurement

Program; 2. Desktop Study of Natural Gas Regulation in 3 other

African Countries (“peer review”); and 3. Support with the drafting of

basic rules and regulations for the operation of ARENE.

REGIONAL

Y4.01.01.05.REG* Regional Battery Services Regulation David Jankofsky, Tom Herbert

10/1/2020 - 12/31/2020 03/31/2021


on/Expansion of Year-3 activity

Y3.01.01.10.RSA - Approach to battery storage rules

• Develop a regional “guide” to provide regulatory options to

regulators. Starting point will be the Namibian report, made generic for

In progress: Using SAEP's Year-3 Battery Services Report and

Recommendations ("A Regulatory Approach") developed specifically for

Namibia’s ECB, in Year-4



Manager(s)


/ Buy-in

Linkages /

Dependencies


the Southern Africa region

• Webinar sharing report

and insights with regulators

OC1 will develop a generic Guide to Battery Services Regulation that will contain

the major questions to be asked and answered before a country makes a decision as

to how it might regulate. This Guide will be downloadable and then

presented in a Webinar-type setting.

•

Y4.01.01.07.REG Rate Case Guide Dissemination David Jankofsky 10/1/2020 - 12/31/2020 02/28/2021

SAEP Initiative

Y3.01.01.08.REG - Rate Case Processing Guide - Outcome 5

• Webinar developed from the Rate Case Guide

In progress: a final document of what was the “Rate Case Guide” (a year-3 activity), but

is now called Common Issues in the Evaluation of Applications for Changes in

Tariffs was completed. Furthermore, SAEP’s Outcome 1, Outcome 5 and

Communications Personnel participated in a constructive virtual meeting to consider

expanded approaches to this Year-4 dissemination activity. Subject to appropriate adaptions and approvals of the

content, it was decided that the SAEP and Power Africa’s social media channels, an e-

mail-based Document Release and a series of webinars will all be utilized in the more

extensive roll-out of this

activity in Q2

Y4.01.01.08.REG Small Scale Embedded Generation

Progress

David Jankofsky, Tom

Herbert

01/01/2021-06/30/2021 SAEP

Initiative

N/A • Assessment of results of

countries that have entered into such programs (Botswana,

eSwatini, Namibia, Zimbabwe). Will include penetration rates as well

Deleted



Manager(s)


/ Buy-in

Linkages /

Dependencies


as recommendations for future programs

• Webinar presentation

Y4.01.01.12.REG Evaluation of Regulatory Independence

David Jankofsky 11/03/2020 - 01/29/2021

02/28/2021

SAEP

Initiative

Y3.01.01.09.REG • Evaluation of independence of

regulatory counterparts in SAEP resulting in a report that counterparts

can use if desired to

enhance regulatory independence

In progress: OC1 has developed a draft report

which has been subjected to a first internal review. Notable changes include the expansion

on the Evaluation Criterion

from three to four, and the consideration of a fifth. Internal review and

development of the report continues in Q2. A completion date of 28 February 2021

seems reasonable.

Y3.C19.01.01.13.REG* Regulatory Support to Provide Disconnection Relief for Customer

Non-payment


04/01/2020-10/30/2020 RERA

(Regional),

Covid-19

Support

N/A • Regulations enabling

South African IPPs to be licensed for cross-border trade

Completed: On 15 October 2020, SAEP finalized a report,

the ultimate conclusion of which was that, whilst the document may serve as a

useful reference resource for

regulators, given the significant prevalence of pre-paid

electricity consumers in the SADC-region (and other considerations), the full

implementation of such a moratorium or similar disconnection relief program

would be of limited impact to countries in the SADC-region during this pandemic.

Y3.C19.01.01.14.REG* Regulatory Advisory to Issue PPA Renegotiation Order


04/01/2020-10/30/2020 RERA

(Regional),

LEWA

(Lesotho)

N/A • Template for a Draft Order

Completed: In September 2020 SAEP drafted a report

which concluded that the

renegotiation of PPA’s is an issue without the pandemic. Therefore, the rationale behind these renegotiations is

not significantly related to the COVID-19 pandemic to require the continuation of

the activity.



Manager(s)


/ Buy-in

Linkages /

Dependencies


Y3.C19.01.01.15.REG* Regulatory Advisory to Issue Utility Accounting Order


04/01/2020-10/30/2020 RERA

(Regional),

Covid-19

Support

N/A • Explanatory Document

• Sample Accounting

Order/Accounting Order Template

• Virtual Workshop

• Technical Assistance Country-specific Accounting Orders

Completed: SAEP developed an Accounting Order tool for use by regulatory authorities

that allows unexpected expenses to be accumulated for possible future recovery.

To explain this tool, SAEP developed and distributed a ‘packet’ of documents and

held virtual meetings in September 2020 with ESERA, BERA, the ECB, and MERA.

Furthermore, Feedback from the participant regulators was positive and in completion of this activity (which occurred in

October 2020), SAEP developed and distributed (to BERA, ESERA, the ECB, the

ERB, MERA, LEWA and NERSA) a document providing guidance to the regional

regulatory authorities (in the

form of a sample letter and a data recording template)

Y4.01.03.01.REG* IPP Cross-Border Trading (NERSA) David Jankofsky, Tom Herbert

10/01/2020-01/15/2021 South African

IPP

Association

and NERSA

support

Outcome 3 • Regulations enabling South African IPPs to be licensed for cross-border

trade

Deleted

Intervention 1.04

BOTSWANA

Y4.01.04.03.BWA* Follow up on BPC 100 MW solar

support

Christine Covington 10/1/2020 -

12/31/2020 09/30/2021

Continuation

of activity

delayed from

Years 2 and 3

Y2.01.04.13.BWA • Assistance to BPC in

developing and implementing the

procurement program

In progress: Botswana’s

Energy Ministry had planned to release a new IRP, which includes several renewable

energy projects, some of which have been “marked” for MegaSolar, on 24 November

2020. However, this release had been delayed into December and as at 8 January



Manager(s)


/ Buy-in

Linkages /

Dependencies


2021, the status is still unknown. Enquiries will continue, as will SAEP support

as needed.

ESWATINI

Y4.01.04.01.SWA Support Eswatini Procurement Tranches

Tom Herbert 10/01/2020-30/09/2021 SAEP

Initiative

Follow-

on/Expansion

of Year-3

activity

Y3.01.04.01.SWA • Assistance to ESERA in adhering to the timelines for Procurement

Tranches 1 (Solar PV) and 2 (Biomass) – both 40 MW

In progress: In November 2020, SAEP was made aware of a variety of procurement

activities presently being undertaken in Eswatini and engaged with officials within ESERA and the Ministry of

Natural Resources and Energy (MNRE) in this regard. Some of these activities

include ESERA requests for project bids from 5-15 MW (3-8 projects) in fulfilment of

Eswatini’s June 2019 published 40MW Solar PV Procurement Programme and an RFQ

issued by the Eswatini Civil Aviation Authority for an 850 kW Solar PV facility at the

International Airport in Mbabane. SAEP will continue to engage

with officials in Eswatini in support of their procurement activities, as needed.

ZAMBIA

Y4.01.04.02.ZMB* Zambia One-Stop-Shop Chris Mubemba 10/1/2020 -

12/31/2020

01/31/2021

Continuation

of activity

delayed from

Years 2 and 3

Y3.01.04.04.ZMB • Support to the European

Union’s Increased Access

to Electricity and Renewable Energy

Production (EU/IAEREP) Team and Lead Consultant, Mr. Azem

Kastrati

In progress: SAEP continues

to support the European

Union’s IAEREP Program in its’ analysis and potential

implementation of a “One-Stop Shop”, which is aimed at assisting potential IPP developers in bringing

potential projects in Zambia to fruition in an expedited manner.



Manager(s)


/ Buy-in

Linkages /

Dependencies


Whilst SAEP participated in a successful virtual workshop in Q4 of Year-4 (September

2020) with members of the working group, efforts to hold a November 2020 virtual

workshop have been met with delays, and as at 31 December 2020 this has yet to be

scheduled. Furthermore, plans for members of the working group to participate in a

country tour to either South Africa or Rwanda continues to be delayed by the COVID-19 pandemic and the resultant

travel restrictions.

Intervention 1.05

SOUTH AFRICA

Y4.01.05.02.RSA Power Africa Gas Roadmap Update David Jankofsky 02/01/2021-09/30/2021 Power Africa

Initiative

N/A • An updated Power Africa Gas Roadmap, with

particular emphasis on gas-to-power targets in South Africa.

• In addition; updated report on industrial demand and the regional

natural gas market, as well as renewed insights of potential employment

benefits of the development of a gas market in South Africa

Not yet started: activity still under feasibility review,

subject to meetings with counterpart. Lines of communication are open and

SAEP are hopeful of a meeting with the NERSA CEO and other executive leadership in

January 2021.

OUTCOME 2


Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Intervention 2.03

MALAWI



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Y3.C19.02.03.02.MWI* EGENCO (COVID-19) Support Assessment of Impacts and Contingency Planning

Izak du Plessis, Tea Mihic 7/27/2020 - 11/30/2020 03/31/2021

EGENCO request

Continuation from Year 3

• Business Continuity Management System (BCMS)

• Business Contingency Plan (BCP)

• Final Report

In progress: The SAEP and EGENCO project team reached the final stage of the

development of the Business Continuity Management (BCM) System, BCM Policy and the

Business Continuity Management Plan (BCMP), now at the EGENCO Executive

Management approval stage, after which it will be presented to the EGENCO Board for

acceptance. Concurrently, the Business Contingency Plan (BCP) for COVID-19 has been developed, incorporating the

initial interventions into a comprehensive plan, also under the Executive Management

Review.

Y4.02.03.02.MWI

EGENCO Project Management - Solar PV KPIs

Wayne Mikutowicz, Dr Vince Micali

5/1/2020 - 11/30/2020


(originally requested by

the

Counterpart)

OC5 • Workshop, Report Deleted

Y4.02.03.03.MWI EGENCO Strategic Plan and HR

Performance Review

Wayne Mikutowicz, Erik

Spurgin

04/01/2020-

03/31/2021

Continuation

from Y3

OC5 • Report In progress: SAEP held a

virtual meeting with EGENCO CEO and the Executive Director of Human Resources and Administration, to discuss

how best EGENCO can finalize the compilation of the required documents before the final

evaluation. It was agreed that

EGENCO would conduct a self-assessment in FYQ2, which

would then be reviewed by SAEP and then rolled out to the EGENCO personnel.

MOZAMBIQUE

Y3.C19.02.03.05.MOZ* EDM Support for Improving the Level of Preparedness and Response

Wayne Mikutowicz, Tea Mihic

8/3/2020 - 11/20/2020

EDM request Continuation from Year 3

• Workshop and final

report

In progress: SAEP supported EDM in compilation of the



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Capacity During and Post the Pandemic (COVID-19)

02/12/2021 Business Continuity Plan. Additionally, SAEP focused on the key component of the

assistance - the development of a cash flow model, which contains a forecast of EDM's

financial availability (revenue generation in the coming periods vs. expenses). The

model was applied under 3 scenarios and its results will provide EDM with an insight

into the impact on its financial position. The plan and the financial model were presented to the EDM COVID Task force

in December 2020, which was received with significant interest. The EDM Finance

department will now integrate the model into its financial planning system.

ZAMBIA

Y4.02.03.04.ZMB* ZESCO Transmission Ancillary Pricing

Methodology

Wayne Mikutowicz, Garth

Broome

1/6/2020 -

12/15/2020 01/13/2021

Continuation

from Y3

N/A • Ancillary Services

Diagnosis (Report), Workshops with Stakeholders,

• Data Analysis (Report), Ancillary Service Cost Methodology,

• Development of a financial model for Ancillary services,

• Training to ZESCO Personnel and model

validation through training

session,

• Draft and Final reports for Ancillary Services

Pricing.

In progress: SAEP completed

assistance to ZESCO, encompassing the methodology and financial modelling of relevant Ancillary services.

Training was provided through a (virtual) workshop held on 22 December 2020, focused on

the methodology for procuring ancillary services, and the calculations required to

estimate the cost of services

where they are not sourced through open tender. A final

report is currently under development.

Y4.02.03.05.ZMB* ZESCO Transmission Services Pricing Wayne Mikutowicz, Garth Broome

1/15/2020 - 12/15/2020

01/13/2021


N/A • Data Assessment Report, Methodology for

Estimating Tx Costs and

In progress: SAEP completed assistance to ZESCO. On 24

November 2020, SAEP



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


allocation, and wheeling charges; Training, Financial Model for Tx

costs

conducted a virtual workshop on financial modelling of transmission prices, attended

by 14 ZESCO staff from the transmission, system operations, accounting, and

finance departments. The workshop provided training in the data structures and end-to-

end calculations involved in calculating the transmission prices based on SAEP’s

recommended methodology, as well as the basis for transfer of the model to ZESCO for application and further

development. A final report is currently under development.

Intervention 2.05

MOZAMBIQUE

Y4.02.05.01.MOZ* EDM Loss Reduction Wayne Mikutowicz, Jose

Cavaretti

03/01/2021

12/31/2021

Requested by

the Counterpart

N/A • Loss reduction model,

Management and governance process

• Training on loss models,

• Management reports,


Not yet started: Awaiting

the approval of the activity by USAID

Intervention 2.08

REGIONAL

Y4.02.08.01.REG* Importance of credit rating discussion with utilities

Wayne Mikutowicz, Izak du Plessis

1/18/2021 - 4/19/2021

03/01/2021 -06/30/2021

Requested by USAID

N/A • Talking points and communication material (potentially white paper)

to discuss with utilities

and regulators on the importance of ratings for

financial sustainability.

• Mapping of the steps for shadow credit rating

Not yet started: Awaiting the approval of the activity by USAID

Intervention 2.09

ANGOLA



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Y4.02.09.01.ANG* ENDE bid evaluation support for AfDB program

Wayne Mikutowicz, Rui Alves, Tea Mihic

10/1/2020 - 5/31/2021 08/31/2021


(originally

requested by the

Counterpart)

N/A • Bidder evaluation report

• Final close-out report –

summary, lessons Report

• Metering bidder prequalification report

• Metering bidder evaluation reports

• Revenue protection

Prequalification report

• Revenue protection learned

In progress: SAEP supported ENDE to complete the majority of TORs for the pre-

paid metering component and the revenue protection component of the loan. ENDE

also received a decision by the AfDB to proceed with the first phase of the procurement

process for the systems component (revenue protection). AfDB granted No

Objection for the Pre-Qualification stage. Accordingly, ENDE published the invitation to respond and

has received 50 responses. A Pre-Qualification meeting was held (virtually) on 30

December 2020 which was attended by a high number of 45 companies expressing

interest. Procurement process

is moving forward as planned.

Y4.02.09.02.ANG* ENDE phase 2 electrification

Coordination Unit (ECU)

Tea Mihic, Rui Alves 06/15/2021-

10/29/2021

ENDE

Request

AfDB and WB ENDE

activities • Gap assessment report

• Design of ECU

• Capacity building on ECU

implementation

• Progress reports

• Final report summary –

lessons learned

Not yet started: Due to start

in Y4 Q2, subject to the approval of the activity SOW by USAID/ SAEP

Y4.02.09.03.ANG* Support to ENDE for the World Bank Program

Tea Mihic, Rui Alves 8/17/2020 - 6/30/2021

ENDE Request

NA • Report


• Bidding documents

• Capacity building for the PIU team

In progress: SAEP commenced assistance to ENDE in the development of

the bid documents for the World Bank Electricity Sector Improvement Project that will

lead to 200,000 connections in Angola, involving technical workshops with ENDE teams,

aimed at preparing the technical specifications for the revenue protection component



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


tender (Subcomponent 1.2: Revenue protection program).

MOZAMBIQUE

Y4.02.09.04.MOZ* EDM EMU program implementation support continued

Wayne Mikutowicz, Rui Alves

8/3/2020 - 9/3/2021

EDM Request Continuation from Y3

• Capacity building plan

• Implementation of

functional processes


• Biweekly report status

updates on progress

• Final close-out report

In progress: SAEP conducted meetings with the EDM EMU

team to review and assess the performance of the EMU in accordance with the processes

and procedures developed by SAEP regarding planning, project management, financial management and procurement.

The assessment concluded that the EMU has successfully adopted these processes. The

next steps of the assistance are to reach out to the regional delegations to fully integrate

and coordinate the EMU processes in the electrification activities company wide.

Y4.02.09.05.MOZ EDM HCD customer experience implementation

Wayne Mikutowicz, TBD (from Deloitte Mozambique team)

11/2/2020 - 4/30/2021

EDM Request OC5 • Report

• Pilot development and

evaluation report (results, conclusions, review of the solutions, recommendations for the

roll-out)

• Set-up a task force, an implementation and

change management plan and governance

• Roll out program

designed and approved by

the BoD. task force capacitated to conduct a

training program at all Delegations

• Final report – summary of

activities and results achieved.; lessons learned and way forward

In progress: Progressed to the final stage of the HCD development process with

EDM, which resulted in development of three key solutions to be piloted and

then rolled out for the benefit of all new customers being connected. The roadmap for

implementation has been approved by 3 key Board members and is now currently before the full Board of

Directors for approval


OUTCOME 3


Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


Intervention 3.01

REGIONAL

Y4.03.01.01.REG Continue to provide support to the finalization of SADC’s Protocol on

Energy

Keith Katyora 10/1/2020 - 9/30/2021

SADC Request

Y3.03.01.01.REG

Y2.03.01.05.REG

• Updated Protocol

• Meeting notes

Not yet started: still awaiting the meeting of the Council of

Energy Ministers to deliberate

on the way forward

Y4.03.01.02.REG Participating in SADC ETG meetings

and SAEP Advisory Committee

Willem Theron 9/30/2020 -

9/30/2021

SAEP Initiative OC5 &

Y3.03.01.02.REG • Notes of meetings every

six months

In progress: These are bi-

annual meetings and as such, SAEP will still continue to attend

Intervention 3.02

REGIONAL

Y4.03.02.01.REG Maintain and enhance a generic system optimization model for SAPP

Keith Katyora, Michael Barry

10/1/2020 - 9/30/2021

SAEP Initiative Y2.03.05.02.MWI,

Y3.03.05.02.MWI

• Production optimization model updates

• Close-out report with

any updates provided

In progress: In September 2020, SAEP presented to the PSC members the General

Production Optimization Tool

which was initially developed for ESCOM, Malawi, but now

has been adapted into a generic model which could be easily implemented by any of the SAPP member states. Both the

model and presentation were well received by the SAPP Executives, and it was agreed

that SAPP would then start with the rollout of the model. This tool will also include a

user manual to guide utility planning engineers to use and

understand the model

Intervention 3.03

MALAWI

Y4.03.03.01.MWI Prepare ESCOM personnel for operating in an interconnected system by introducing them to the SAPP CC

Mark Sims 10/1/2020 - 9/30/2021

ESCOM LOC OC5 &

Y3.03.03.01.MWI

• Meeting notes


• Training/close-out

reports

In progress: SAEP developed training material to capacitate ESCOM’s personnel to operate

in an interconnected system,



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


and other SAPP utilities operating in the interconnected system

which were presented in September and October 2020. The training was catered for

ESCOM’s control engineers on operating in an interconnected environment, and currently the

post training reports are being compiled for submission to PMO to close-out the training.

Next steps will now include setting up meetings with the SAPP Coordination Centre

Intervention 3.04

REGIONAL

Y4.03.04.01.REG Support SAPP in the rollout of new access guidelines

Willem Theron or Mark Sims

9/30/2020 - 10/1/2021

SAPP Request and LOC

Y3.03.04.01.REG

Y2.03.04.01.REG

• Presentation materials to support SAPP in promoting and marketing

the new access guidelines

In progress: In November 2020, SAEP held a meeting with the SAPP Executives to discuss technical and regulatory

support to SAPP in the rollout of new access guidelines. The agreement between both

parties was that SAPP, in the next quarter (Q2), will develop a presentation that would be

shared with a small group of IPPs (which SAPP would identify) to test adequacy and

usefulness of the guidelines, after which, both the guidelines and presentation would then be posted on the SAPP website

as an aid to prospective members.

Intervention 3.05

ANGOLA

Y4.03.05.01.ANG* Assist RNT to operationalize a PIU for

the Central–Southern 400 kV project

Willem Theron 10/1/2020 -

9/30/2021

USAID, RNT

and AfDB request

Y3.03.05.01.ANG • 100- and 365-day rolling

plan for PIU

• PIU operationalization

documents, including comments on

In progress: SAEP continues

to offer assistance to RNT as they operationalize their PIU. In December 2020, the SOW

was amended to include, temporarily, (for the next



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


procurement review reports created by RNT


• Risk, issues and action log

• Presentations on internal

workshops and training to support RNT PIU

• Biweekly and quarterly

progress reports

three months only) more hands-on assistance to the RNT PIU.

Y4.03.05.02.ANG* Providing assistance to RNT on the ANNA commercial contract

components

Willem Theron, Keith Katyora

3/31/2021 - 9/30/2021

Y3.03.05.01.ANG • Advisory notes, memos and reports to SAEP

internal team and RNT

Not yet started: Activity not yet started, but will kickstart in

Q2 of Year 4

Y4.03.05.03.ANG* Embedded Advisor to support RNT to

manage the ESEEP I Project and the operationalization of the RNT PIU, working closely with the RNT Project Coordinator

Embedded Advisor 10/1/2020 -

9/30/2021

RNT request Y3.03.05.01.ANG • Biweekly, quarterly and

weekly (internal) reports

• Meeting coordination including meeting

agendas, interpretations and meeting minutes

• Progress updates to OC3

Lead and Deputy on all assistance given in terms

of operationalization of

the RNT PIU

• Coordination for the SAEP team for Angola

missions

In progress: Embedded

Advisor continues to provide assistance to the RNT PIU across all departments, and also working closely with the

RNT PIU Project Coordinator

Intervention 3.05

MOZAMBIQUE

Y4.03.05.04.MOZ* Embedded Project Coordinator in EDM to manage the Temane

Transmission Project and its interface to the Temane 450 MW IPP project

Bruno Batista 9/30/2020 - 12/31/2020

03/31/2021

EDM Request Y3.03.05.03.MOZ

Y2.03.05.04.MOZ

• Assistance to TTP team with all bid openings for

all Lots

• Quarterly progress reports


• Assist TTP with the recruitment of additional

project resources

In progress: WB issued a No Objection to the direct

selection of Bruno Batista, the Embedded Project Coordinator, as the official

project coordinator for the

TTP project from 1 November 2020 to 31 December 2023. Bruno will, however, continue

to assist SAEP as and when needed

Intervention 3.06



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /

Dependencies


REGIONAL

Y4.03.06.01.REG* Assistance to SAPP for Regional

Transmission Infrastructure Fund (RTIFF)

Willem Theron, Keith

Katyora and Financial Advisors

10/1/2020 -

9/30/2021

SAPP and

World Bank request

Y2.03.06.01.REG

Y3.03.06.01.REG

• Advisory notes to SAPP

• Feedback reports to stakeholders involved in the project (as requested

by SAPP)

In progress: SAEP continued

to assist and advise SAPP by reviewing the RTIFF framing paper, draft final report, and the stakeholder engagement

presentations (to introduce and brief stakeholders on the

concept of RTIFF and work

done to date) developed by their consultants. SAEP also submitted advisory notes to

SAPP, providing technical and financial guidelines as to the key focus areas of the RTIFF

and the rollout roadmap in terms of getting buy-in from the SADC member states. SAEP will continue to take part

as advisors in the weekly meetings with SAPP

OUTCOME 4


Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


Intervention 4.01

NAMIBIA

Y4.04.01.02.NAM* TA to CENORED for procurement of energy from new solar plants

Clarence Oelofse 10/1/2020 - 9/30/2021

CENORED Request

Y3.04.01.03.NAM • Recommendations on how to get developers to

lower their tariffs and/or combine their offers with

battery storage

In progress: Activity stalled. SAEP had previously provided feedback to CENORED on

their proposed procurement

documents. CENORED have committed to providing

feedback on a way forward and this happened in early December 2020 when they

returned the procurement document with comments. SAEP and CENORED will



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


work to develop the scope for the next phase of the work

MADAGASCAR

Y4.04.01.03.MDG Ad-hoc TTS for energy companies in Madagascar

Rija Rakotoson 03/15/2020 - 12/30/2021

SAEP Initiative Y4 Madagascar

Activities

• Biweekly and quarterly reports

Not yet started

MALAWI

Y4.04.01.04.MWI* Transaction advisory services on

Mpatamanga project

Cross Boundary, Jorry

Mwenechanya

10/1/2020 -

9/30/2021

GoM and IFC

Request

OC1.04 • Quarterly progress

reports

• Development

• Agreements concluded


In progress: Continued to

provide transaction assistance to the Government of Malawi as they navigate the

development of the Mpatamanga Hydropower Project

SOUTH AFRICA

Y4.04.01.05.RSA Sasol 600MW RE IPP Transaction Advisory

Clarence Oelofse 03/01/2021-01/31/2022

SASOL and SAEP Initiative

N/A • Quarterly progress

reports; Comments on procurement documents, process, timelines, and SASOL-IPP commercial /

contracting structure

Not yet started: No activity in the quarter. Activity awaiting work plan approval

Y4.04.01.06.RSA Accelor Mittal 150MW RE IPP

Transaction Advisory

Clarence Oelofse 03/01/2021-

01/31/2022

SAEP Initiative N/A • Quarterly progress

reports; Comments on documents and process

Not yet started: No activity in the quarter. Activity awaiting work plan approval

Y4.04.01.07.RSA Assist municipalities with an

understanding of Project Finance principles used in IPP financing

Clarence Oelofse 03/01/2021-

09/30/2021

SAEP Initiative

and SALGA Request

OC5 • Training material and

report

Not yet started: No activity

in the quarter. Activity awaiting work plan approval

Y4.04.01.08.RSA Support municipalities with approaches and activities for entering into long-term Power Purchase Agreements (PPAs) with IPPs

Clarence Oelofse 03/01/2021-12/30/2021

SAEP Initiative and SALGA

Request

OC1, OC3 • Quarterly Reports; Model PPAs; Legal opinion on MFMA restrictions



Y4.04.01.09.RSA Provide SALGA with training on PPP

approaches for infrastructure project

development

Tshegofatso Neeuwfan 04/01/2021-

09/30/2021

SAEP Initiative

and SALGA

Request

OC5 • Training material and

report Not yet started: No activity


Intervention 4.03

NAMIBIA



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


Y4.04.03.01.NAM Follow-up support to CENORED with battery storage

David Jarrett 10/1/2020 - 2/28/2022

CENORED Request

OC1 • Quarterly report of support provided to CENORED covering

• Assistance with making decisions based on report recommendations

• Identifying credible partners (financiers,

manufacturers,

integrators etc.)

• Developing and issuing an

RFP

• Ad-hoc memos to CENORED to aid the

transaction

In progress: SAEP assisted CENORED to develop concept notes for USTDA. USTDA will

use the concept notes to determine whether they are interested in funding

CENORED’s feasibility studies for battery storage systems. At the end of the quarter,

CENORED informed SAEP that they would seek approval for the concept notes from

their Board as well as the Board of another area in which, one of the sites is located.

MALAWI

Y4.04.03.02.MWI* Monitoring and Evaluation, and

supplementary support for ESCOM vRE integration

Tshegofatso Neeuwfan 10/1/2020 -

9/30/2021

ESCOM

Request

OC2 and OC3 • Quarterly reports

• Ad-hoc memos sent to ESCOM

In progress: Draft

deliverables were submitted to SAEP by the consultant. Among the deliverables is a report on

studies for integrating the JCM plant into the Malawi grid. SAEP is reviewing the

deliverables with a view to finalize them and thereafter submit the recommendations to ESCOM

SOUTH AFRICA

Y4.04.03.03.RSA Assist municipalities to assess the

viability of deploying battery storage and other new technologies in their systems

Tshegofatso Neeuwfan 03/22/2021-

12/30/2021

SAEP Initiative

and SALGA Request

N/A • A report on the viability

of integrating new technologies into municipal grids;

• Techno-economic

assessment of the most viable option

Not yet started

Intervention 4.05

ESWATINI

Y4.04.05.01.SWA EWSC Energy Efficiency Program Support

Jorry Mwenechanya 10/1/2020 - 9/30/2021

EWSC Request &

SAEP Initiative

NA • Report on feasibility of recommended measures

In progress: SAEP had regular update calls with the utility during quarter 1. The calls



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


• Implementation plan submitted

• Quarterly reports of

assistance provided to EWSC

were used to receive updates on implementation as well as to advise the utility on any

challenges they were facing. At the end of the quarter, SAEP selected the preferred

consultant to provide training on implementing energy efficiency sustainably. What is

left is for the contracting processes to be concluded. Training will resume in quarter

2.

Y4.04.05.02.SWA Ministry (MNRE) Energy Efficiency Action Plan Support


Ministry Request &

SAEP Initiative

NA • Monthly and quarterly reports on assistance

provided to the Ministry

• Final recommendation and progress report on

adoption and implementation

• Ad-hoc advisory memos

to MNRE

In progress: SAEP supported the MNRE to conceptualize the

implementing agency that will own the National Energy Efficiency Strategy and Action

Plan (NEESAP). At the end of the quarter, the University of Eswatini committed to considering the proposed unit

and its structure and revert to the steering group responsible for its establishment. SAEP will

continue to support the MNRE in quarter 2

NAMIBIA

Y4.04.05.03.NAM Incandescent lightbulbs phase out implementation support

David Jarrett 1/1/2021 - 6/30/2021

04/01/2021-09/30/2021

SAEP Initiative OC1 • Quarterly reports of implementation assistance

provided Not yet started

MADAGASCAR

Y4.04.05.04.MDG Assistance to Madagascar industry

association (SIM) with Industrial Energy Efficiency Program Phase 1

Rija Rakotoson 10/1/2020 –

3/30/2021

SIM Request NA • Monthly reports on assistance provided to SIM

• Finalized request for applications

• A list of companies

selected to participate in the energy efficiency program

In progress: SAEP developed

a strategy for the SIM energy efficiency program and also drafted the request for

proposal documents that will be issued to SIM members to solicit their participation in the

EE program. During quarter 2, the documents will be finalized



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


with SIM's input and released to their members. SAEP expects that the 10 companies

that will participate in the EE program will be selected in the second quarter

Y4.04.05.05.MDG Assistance to Madagascar industry association (SIM) with Industrial Energy Efficiency Program Phase 2

Rija Rakotoson 4/20/2021 - 11/30/2021

SIM Request NA • Inception report; energy audit reports Not yet started

ZAMBIA

Y4.04.05.06.ZMB Lusaka Water Supply and Sanitation

Industrial Energy Efficiency

Jorry Mwenechanya 10/1/2020 -

6/30/2021 02/01/2021-09/30/2021

LWSSC

Request

Y3.04.05.03.SWA • Inception report;

quarterly reports; close-out report with targets and progress made in

achieving targets

In progress: No activity in the

quarter. Approval for activity start was obtained in December 2020

Intervention 4.06

NAMIBIA

Y4.04.06.01.NAM Provide follow-up assistance to the City of Windhoek - implementation of

recommendations

David Jarrett 10/1/2020 - 3/31/2021

COW Request &

SAEP Initiative

NA • List of financial institutions and other

stakeholders for the city to engage

• Structure of a PPP that

the City should adopt for peri-urban electrification

In progress: Activity progress was interrupted by local

government elections, which led to changes to the municipal council and its committees.

SAEP has to support the electricity department as they seek approval of recommendations for the

acceleration of peri-urban settlement electrification from the municipal council

committee in charge of electricity

MADAGASCAR

Y4.04.06.02.MDG Baobab+ salesforce training and performance management

Rija Rakotoson 03/15/2021 -7/30/2021

Baobab+ Request

OC5 • Training reports

• Performance management

plan

Not yet started: Baobab+ were focusing their attention

on keeping their business running in the face of movement restrictions. This activity was therefore

subordinated to those considerations. SAEP attempted to assist them to



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


relieve the movement restrictions but the assistance they received from the

government was not effective. SAEP will continue to engage Baobab+ about the activity in

the second quarter

Y4.04.06.03.MDG Donor platform setup support Rija Rakotoson 03/22/2021-12/30/2021

Ministry Request

NA • Quarterly reports Not yet started: SAEP and other cooperating partners

provided inputs to the Ministry as they continue to conceptualize and implement a

donor coordination platform. The ministry also made specific requests to each of the CPs for

assistance related to this activity. SAEP is evaluating the request and will provide

feedback to them after workplan approval

Y4.04.06.04.MDG* Madagascar mini-grid catalytic grant

program

Lorna Jideamah

Mpumelelo Mlilo

10/1/2020 -

9/30/2021

SAEP Initiative Grants equivalent

activity

• Periodic reports from

grant awardees

• Mini-grid grant funding disbursed to successful

recipients

In progress: The successful

applicants were announced

during a grant launch event. The Minister of Energy in

Madagascar also attended the event and expressed his appreciation and excitement

for the assistance. The next step is scoping technical assistance for each of the grantees

Y4.04.06.05.MDG Track and support Solarland entry into the SAVA region SHS market

Rija Rakotoson 10/1/2020 - 6/30/2021

AVORTRA and Solarland

Request

NA • Periodic reports on progress made by

Solarland in the SAVA region as well as support

provided by SAEP

In progress: Activity progress was stalled by organizational

restructuring that Solarland is undergoing. Due to COVID-19

related business impacts, Solarland laid off a significant

amount of their technical staff, including the POC for this activity. Attempts to establish

the company's readiness to move forward with the activity will resume in the second

quarter



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


MALAWI

Y4.04.06.06.MWI Operational support for Malawi SHS

Kick-Starter grant awardees and other SHS companies

Cole Johnson 10/1/2020 -

9/30/2021

SAEP initiative Continuation from Y3 • Quarterly reports

detailing support provided to SHS companies

In progress: SAEP continued

to monitor follow-on SFE agent trainings with Zuwa and Vitalite following roll-out of virtual SFE trainings in the last

quarter of Year 3. SAEP also provided customized RTM

support to Sunny Money and is

considering a request for additional support from the company. SAEP is continuing to

engage SHS companies and other donor partners to resolve the Malawi Revenue

Authority's recent inconsistencies in applying VAT/duties to solar products. Lastly, the program is engaging

partners about developing an adaptation of the SFE training program that could be rolled

out to countries outside of Southern Africa

Y4.04.06.07.MWI Post solar PV and storage installation support to Mercy James Centre (MJC)

Arthur Wengawenga 1/1/2021 - 6/30/2021

MJC request NA • Report with a review of MJC's solar PV and battery installation as well

as assistance provided by SAEP

In progress: No activity in this quarter

MOZAMBIQUE

Y4.04.06.08.MOZ Operational support to Mozambique SHS companies

Cole Johnson, DTT Mozambique

10/1/2020 - 9/30/2021

SAEP Initiative NA • Quarterly reports detailing support provided to SHS companies

In progress: SAEP's engagements with companies centered around providing

them with updates on the fiscal

incentives work that SAEP is doing in Mozambique as well as

to solicit their participation in the work. The extent of their participation will be in the

provision of data and other inputs that will be used to revise the econometric model -



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


a questionnaire was issued to the companies to get this input

Y4.04.06.09.MOZ Support implementation of Mozambique fiscal incentives for solar products to improve affordability

Cole Johnson, DTT Mozambique

10/1/2020 - 9/30/2021

SHS Company Request

NA • Biweekly and quarterly reports on the support provided

• Fiscal incentives implementation roadmap

• Macroeconomic model of

incentives scenarios

In progress: SAEP finalized the roadmap for the implementation of fiscal

exemptions. Progress was also made with developing the assumptions for the revision of the econometric model that

will inform decision-making around options that the government will select for the

implementation of the incentives

SOUTH AFRICA

Y4.04.06.10.RSA Municipality Last Mile Electrification Tshegofatso Neeuwfan 04/01/2021-

12/30/2021

SAEP Initiative

and SALGA Request

OC5 • A report identifying the

off-grid opportunities for accelerating electrification in remote areas;

• A report providing the

approach to developing business cases and

concept designs for selected projects;

• Test example of business

case development and concept design



ZAMBIA

Y4.04.06.10.ZMB* Alternative energy solutions for health facilities in Zambia

Jorry Mwenechanya 10/1/2020-12/30/2021

AVENCION Request

NA • Periodic reports sent to AVENCION with reviews of their designs, O&M

plan and financial models

In progress: No progress with the counterpart in the quarter. SAEP will explore

options for closing out the

activity in the second quarter

Y4.04.06.11.ZMB Alternative energy solutions for health

facilities in Zambia Phase 2

Jorry Mwenechanya 1/1/2021 -

5/28/2021 04/20/2021-09/30/2021

AVENCION

Request

NA • Report with a review of

AVENCION's installation at 5 pilot sites as well as assistance provided by

SAEP

Not yet started



Manager(s)

Start–End

Date

Reasoning

/ Buy-in

Linkages /


Y4.04.06.12.ZMB Scaling of alternative energy solutions for health facilities in Zambia


AVENCION Request &

SAEP Initiative

NA • Report outlining a high-level plan for scaling AVENCION's operations

Not yet started

Y4.04.06.13.ZMB Program management Support to SIAZ and OGTF

Chris Mubemba 10/1/2020 - 9/30/2021

SIAZ Request NA • Quarterly reports In progress: SAEP participated in a series of

meetings of a working group organized to find a resolution to the deteriorating fiscal

environment and fiscal

exemptions work. The work included recommending revisions of the statutory

instruments that govern fiscal exemptions and revisions of a Customs Handbook of solar

products on correctly identifying solar products for tax and duties exemptions

Y4.04.06.14.ZMB Zambia operational support to SHS companies and mini-grid developers

Cole Johnson 10/1/2020 - 9/30/2021

SAEP Initiative NA • Quarterly progress reports

In progress: SAEP completed the scenarios for responding to the deteriorating macro-

economic indicators in Zambia.

These scenarios were used to validate and prioritize a set of

potential response options. This work was summarized in a final deliverable that was

shared with Fenix at the end of the quarter

Y4.04.06.15.ZMB Support the BGFA in reviewing

applications submitted by Zambian SHS/mini-grid companies.

Jorry Mwenechanya 2/15/2021 –

3/26/2021

BGFA

Request

N/A • Completed evaluations New


OUTCOME 5


Manager(s) Start–End Date

Reasoning /

Buy-in

Linkages /


Intervention 5.01

REGIONAL

Y4.05.01.01.REG LG – Battery Storage Scaling Technologies workshop with Power

Africa battery working group

Lana Nwosu, Tshegofatso Neeuwfan,

David Jarrett

3/2/2021- 5/25/2021 SAEP proposal building on

previous SADC

battery event

OC4 • Concept note and project event plan

• Chapter Guide Listings

and Implementation LPG

• Workshop/Seminar

presentation

Not yet started: No status update to report in this quarter. Concept note for the

Battery Storage Phase 2 will commence in the next reporting quarter.

Y4.05.01.02.REG LG – Guidelines that support reform

process for rooftop solar

Lana Nwosu 03/16/2021 -04/26/2021 Lessons from

Year 3 for regulators

OC1 • SAEP position paper for

external stakeholders interested in regulatory reform for rooftop solar

Not yet started

Y4.05.01.03.REG LG – Lessons Learned from Botswana Rooftop Solar Program

Lana Nwosu 10/30/2020 - 1/1/2021 Lessons from Year 3 for regulators

OC1 • Checklist document

• Document release note Not yet started

Y4.05.01.04.REG LG – Top tips for organizational design based on work at BERA

Lana Nwosu 10/30/2020 - 1/1/2021 Lessons from Year 3 for

regulators

OC1 • Document release note

• One-page blog Deleted

Y4.05.01.05.REG Off-grid energy access (technology and processes) and enabling support

engagement with SADC Secretariat

Lana Nwosu 3/2/2021- 5/31/2021 Lessons from Year 3 and

SADC request

OC4 • Workshop learning materials

In progress: The review for the learning guides for off grid

energy access (OGEA) has been reviewed by Power Africa and the OGEA

socialized with SADC institutions. Release notes for dissemination will be published for wider

dissemination in the next reporting quarter.

Y4.05.01.06.REG Peer-to-peer collaboration

(Mozambique/Angola)

Lana Nwosu, Wayne

Mikutowicz

05/25/2021-05/31/2021 RNT request OC2 • Scope of Work

• Lessons learned report

Not yet started: No status

update to report in this quarter. Activity is planned to commence in February.

Ongoing engagements with SAEP Electrification team on areas of collaboration

between Mozambique and Angola.




Reasoning /

Buy-in

Linkages /


MALAWI

Y4.05.01.07.MWI Capacity building program to increase

peer-to-peer collaboration in load forecasting management between EGENCO and ESCOM

Lana Nwosu, Willem

Theron, Arthur Wengawenga

10/31/2020 - 3/31/2021 Need discovered

during Y3.05.03.01.MWI and Y3.02.03.01

OC3 • Workshop materials

• ToR/Joint Action Plan

In progress: Engagement

held with Power Market Ltd (PML) and SAEP team to determine focus of engagement. PML is initial

stages of operationalization. Proposals made by DCOP-T

to PML team in December

2020, awaiting feedback from PML to determine position of activity to support Malawian

utilities.

Intervention 5.02

REGIONAL

Y4.05.02.01.REG Design an engagement strategy to support SACREEE with the Oceanic

member states

Lana Nwosu 10/1/2020 - 2/23/2021 SACREEE Request

OC4 • Policy improvement Report

• Energy snapshot stakeholder consultation concept notes

• SACREEE program list

In progress: SAEP has submitted the final draft for

smart measurable and relatable programs for the oceanic member states. A

joint report is under draft

review with National Renewable Energy Lab (NREL) Clean Energy Center

in the identification of policy issues and enabling initiatives that are top of mind for the

oceanic member states based on the data and information available. SACREEE will be

providing comments to SAEP and NREL in Quarter 2.

Y4.05.02.02.REG Refresh and review of RERA training

curriculum

Lana Nwosu 10/30/2020 - 4/30/2021 RERA Request OC1 • Capacity building report In progress: SAEP and RERA

Executive Director and the Secretariat evaluated the scope of work to address

RERA's training framework in light of the existing pandemic and to align requirements for

the training with the program’s purpose. The SOW concept was revised




Reasoning /

Buy-in

Linkages /


and plans to sign it off in FY21 Q2 are underway.

ZAMBIA

Y4.05.02.03.ZMB ZESCO HR skills building and organizational alignment

Lana Nwosu 11/3/2020 - 2/1/2021 ZESCO continuation

request from Year 3

OC1, OC2, OC3,

OC4


• HR skills impact

recommendation report

Deleted

SOUTH AFRICA

Y4.05.02.04.RSA Capacity Building Revenue Management

Lana Nwosu 04/06/2021-09/23/2021 Capacity Building N/A • Reports, training, workshops

Not yet started

Y4.05.02.05.RSA Capacity Building resource management office

Lana Nwosu 04/06/2021-09/30/2021 South Africa supporting

capacity building

N/A • Reports, Workshops Not yet started

Y4.05.02.06.RSA Capacity Building Battery Storage - South Africa

Lana Nwosu 04/06/2021-09/30/2021 Capacity Building requirements from

Counterpart and enabling work in SA

N/A • Workshop Facilitated training, Reports

Not yet started


PMO- AND CROSS CUTTING- SPECIFIC ACTIVITIES

Below are the PMO- and Cross-Cutting- specific activities are from the SAEP Year 4 Work Plan. Any activities that are direct replications of the above Outcome-specific

activities have been excluded from the below table. This table is to track the status of the activities and to highlight any activity changes, timing changes or other major items

related to activities that the SAEP team would like to highlight for the period.


Lead(s)

Start and End

Dates Reasoning / Buy-In Deliverable(s) Status

MONITORING AND EVALUATION

Y4.PMO.MEL.01 Consolidate M&E Reporting database on Wrike, for all indicators

Lubabalo Banzana,

Sabatha Madondo

Quarterly Consolidation of reporting database

• Consolidated internal M&E database,

where all SAEP data can be directly retrieved from one source

Not yet started

Y4.PMO.MEL.02 Draft and submit M&E data updates for Annual Performance Management

Reports

Lubabalo Banzana 1 October 2020 Contract requirement • Performance management progress reports (Submitted within 30 days

after the end of FY)

In progress: Assisted with some of the revisions that were

required to be made in the SAEP Year 4 Workplan, specifically, around the targets that had been set for some indicators. There

were updates made on the Connections targets and Transactions reached FC.

Y4.PMO.MEL.03 Support SAEP team to design, collect

and analyze data through SurveyMonkey as requested

Lubabalo Banzana Ongoing Leading practice • Ad-hoc data requests from SAEP staff In progress: Through

SurveyMonkey, the M&E team was able to assist some of the

technical teams to develop and analyze the following surveys: 1) Environmental Management

Evaluation: Solar Home System (SHS) Survey 2) SACREEE Oceanic Member

State Surveys (Comoros, Seychelles and Mauritius) 3) Southern Africa Energy

Program: Pre-Training/Workshop Evaluation Form (Change

Management Training)

4) Southern Africa Energy Program: Post-Training/Workshop Evaluation Form (Change Management Training)

Y4.PMO.MEL.04 Review Performance Management and Evaluation Plan (PMEP), and update as

necessary

Lubabalo Banzana Quarterly Contractual requirement • Updated PMEP In progress: Updated the Performance Management

Evaluation Plan (PMEP) and submitted it to USAID for



Lead(s)

Start and End


approval. The updated plan is yet

to be approved by the COR. The following updates were made to the PMEP:

Updated targets for the following indicators; 1) Direct Electricity Access: Target was reduced from

3,000,000 to 2,130,000 connections

2) Capacity (MW) from

transactions supported by SAEP that achieved financial closure: The target was increased from

4,000MW to 5,000MW

Y4.PMO.MEL.05 Draft and Submit M&E data updates for Quarterly Progress Reports

Quarterly Contractual requirement • Submission of required reports (as

part of the quarterly reporting process)

• Transaction table and tracker updates

• Performance monitoring and Evaluation table

• Participant training report

• DIS reporting

• TraiNet reporting

• Monitoring, evaluation and learning

reporting

In progress: Updates to the M&E Performance tables and

Transaction sections have been made for Q1.

Y4.PMO.MEL.06 Conduct regular data quality

assessments (DQAs)

Quarter Leading practice • 1 x DQA report per country assessed In progress: Developed a Write-

up on the steps SAEP can potentially in conducting a DQA for the indicator “Number of Institutions with Improved

Capacity”. In Year 4, an assessment on this indicator has been planned.

Y4.PMO.MEL.07 Complete quarterly transactions update on Power Africa Transaction Tracker

(PATT)

Quarterly Contractual requirement • Data entry into PATT (within 30 days after the end of each quarter of

performance)

In progress: Status: Quarterly updates have been made on PATT

Y4.PMO.MEL.08 Manage transaction status updates via Wrike

Quarterly Leading practice • Up-to-date record of status update on SAEP’s transactions

In progress: Ongoing activity Q1 tasks completed

Y4.PMO.MEL.09 Consolidate M&E Reporting database

on Wrike, for all indicators

Monthly Leading practice • Consolidated indicator report In progress: Ongoing activity Q1

tasks completed



Lead(s)

Start and End


KNOWLEDGE MANAGEMENT

Y4.PMO.PPM.01 Archive various SAEP reports that have

been submitted to and approved by USAID on the Team Drive

Sabatha Madondo

Ongoing Contract requirement

• Bi-Weekly reports

• Quarterly reports

• Work Plan

• PMEP

• All deliverables

In progress: Ongoing activity

Y4.PMO.PPM.02 Track and archive deliverables for the

Year 4 work plan activities and submit the tracker to USAID on a quarterly

basis

Sabatha Madondo Ongoing

Contract requirement

• An up-to-date Year 4 Master File with

links to activity deliverable folders,

shared with USAID

In progress: Ongoing activity all

quarter 1 tasks completed

Y4.PMO.PPM.03 Track and archive Trip Reports

submitted by the team and submit the tracker to USAID on a quarterly basis

Sabatha Madondo


• An up-to-date trip report tracker with

links to various trip reports

Not yet started: Travel

restrictions are still in place due to COVID 19

Y4.PMO.PPM.04 Submit datasets/documents to the Development Data Library (DDL)

Sabatha Madondo, Albert Ikhile Ongoing Contract requirement

• Ongoing submissions of datasets/documents to the DDL

In progress: Ongoing activity, in Q1 RTM data was submitted on

DDL

Y4.PMO.PPM.05 Upload SAEP deliverables onto the USAID Development Experience Clearinghouse (DEC)

Sabatha Madondo, Albert Ikhile


• Ongoing submissions of deliverables to the DEC

In progress: ongoing activity, Q4 deliverable are to be uploaded on the DEC upon approval of the QR

by USAID.

Y4.PMO.PPM.06 Provide ongoing Wrike training and support to SAEP team (as required)

Sabatha Madondo

Ongoing Leading practice

• Continuous onboarding of SAEP staff

to Wrike for program management

In progress: This is an ongoing activity, in Q1 Finance and

operations staff were trained on WRIKE usage. Support is provided as an when required by SAEP

team.

Y4.PMO.PPM.07 Generate quarterly activity status from Wrike

Sabatha Madondo

Quarterly Leading practice

• Year 4 Activity Table for Quarterly

Reports

In progress: Ongoing activity Q1 tasks completed

Y4.PMO.PPM.08 Follow-up with technical teams on activity updates and document uploads

on Wrike

Sabatha Madondo

Ongoing Quality control of

management systems

• Up-to-date Y4 work plan activities on Wrike


Y4.PMO.PPM.09 Manage project performance updates and feedback to the outcome leads and management

Sabatha Madondo

Quarterly Leading practice

• SAEP project performance dashboard for internal monitoring of activities


Y4.PMO.PPM.10 Updating of SAEP contact list - ongoing Sabatha Madondo

Ongoing Leading practice

• Up-to-date contact list CSV Not yet started: this is an ad

hoc activity as and when required



Lead(s)

Start and End


COMMUNICATION AND OUTREACH

Y4.PMO.COM.01 Branding and Marking Plan updates as

required

Helga Wenhold

Ongoing Leading practice • Revisions to Branding and Marketing

Plan as necessary. There was just an update in Year 3, so no updates envisioned in Year 4, but it has been

included

Not yet started

Y4.PMO.COM.02 Communications Strategy updates as

required

Helga Wenhold Ongoing Leading practice • Revisions to the Communications

Strategy as necessary

Not yet started

Y4.PMO.COM.03 Draft and Submit Biweekly Reports Albert Ikhile; Helga Wenhold

Biweekly Contract requirement • Biweekly report (every two weeks) In progress. This is an ongoing activity. All Q1 tasks were

completed

Y4.PMO.COM.04 Draft and Submit Quarterly Progress Reports

Albert Ikhile; Helga Wenhold

Quarterly

Contract requirement • Quarterly Progress Reports (within 30 days after the end of each quarter of performance)

In progress: Submitted the Year 3 Annual Report to USAID on 30 October 2020

Y4.PMO.COM.05 Draft and Submit Year 4 Annual Report Albert Ikhile; Helga

Wenhold 10/30/2020 Contract requirement • Annual Report (packaged as success

stories)

Not yet started

Y4.PMO.COM.06 Draft success stories Helga Wenhold Ongoing Leading practice • Publish at least 2 success stories per

quarter

Completed: Drafted two

success stories, which are both included in this quarterly report

Y4.PMO.COM.07 Utilize/convert success stories for

publication on online platforms

Helga Wenhold Ongoing Leading practice • SAEP successes to be published on

external communication platforms like Power Africa’s Medium, newsletters, USAID website etc.

In progress: Drafted two articles

for Power Africa’s blog, Medium. Power Africa published the blog titled "Power Africa Awards $1.2

Million in Grants for the Development of Mini-Grids in Madagascar" on 23 November 2020. SAEP shared the write-up

about Power Africa’s support to power transmission in Angola with Power Africa on 18

December 2020.

Y4.PMO.COM.08 Update fact sheets for all SAEP focus

countries

Helga Wenhold Ongoing Leading practice • Update the SAEP profile fact sheet, the

Transactions fact sheet as well as the following country fact sheets: Malawi, Namibia, Regional, Zambia

In progress: Updated and

finalized the English and French versions of the SAEP Madagascar country fact sheet Developed two SAEP country

fact sheets for i) Eswatini and ii) Lesotho, which USAID/Southern



Lead(s)

Start and End


Africa approved on 19 October

2020

Y4.PMO.COM.09 Publish press releases through PA and USAID channels

Helga Wenhold Ongoing Leading practice • Published press releases based on high-level activities and events

In progress: Developed a press release for the Madagascar Mini-

Grid Development Grant Winners Announcement Virtual live event on 23 November 2020,

which USAID/Madagascar

translated into French. Various media reported on the event in

Madagascar.

Y4.PMO.COM.10 Maintain SAEP LinkedIn page Tru-handé Kotze Ongoing Leading practice • LinkedIn continuously updated with relevant and interesting content

In progress: Updated the SAEP LinkedIn page on a regular basis

by creating content for new posts, reposting or amplifying news as well as SAEP vacancies. This in

turn has resulted in the following achievements: - The LinkedIn page reached 3,200 followers by 31 December 2020

- Content is frequently liked,

celebrated and reshared by followers

Y4.PMO.COM.11 Regular output of social media content for USAID and Power Africa platforms

Helga Wenhold Ongoing Leading practice • Social media write-ups for Facebook, Twitter and Instagram

In progress: Prepared around 12 social media posts during this

quarter, of which most were posted on Power Africa’s social media platforms and some on USAID/Mozambique and the US

Embassy to Madagascar’s social media platforms. The Communications team amplified

this content on the SAEP LinkedIn page. Social media topics included: - SAEP’s collaboration with Kafue

Gorge Regional Training Centre (KGRT) - Madagascar Mini-Grid

Development Grant Winners Announcement Virtual live event - Mozambique Route-to-Market

geospatial tool document release, and



Lead(s)

Start and End


- Successes/good news from the

grantees under the SHS Kick-Starter Program for Malawi

Y4.PMO.COM.12 Creation of visual/digital Public Relations material

Helga Wenhold 10/01/2020–

09/30/2021

Leading practice • Develop one three-minute success story video

• Quarterly SHS Kick-Starter for Malawi

newsletter

• Quarterly newsletters on the progress

of the Madagascar mini-grid grant

• Expand SAEP photo database to include professional, high-quality,

impactful photos

In progress: Developed a Terms of Reference (TOR) and made logistical arrangements for a

Malawi, drafted a proposal and ToR for a video company to produce a three-minute

documentary video about Power Africa’s support to power transmission in Angola. Developed

a PowerPoint presentation giving an overview of SAEP’s activities in Madagascar for

USAID/Madagascar. Developed a PowerPoint presentation giving an overview of SAEP’s activities in Madagascar for

USAID/Madagascar. Developed the Malawi SHS Kick-Starter for Malawi Milestone 5 newsletter

Y4.PMO.COM.13 Plan and implement high-level events in Year 4 as per the outcome planned activities

Helga Wenhold Ongoing as needed Leading practice • High-level events implemented in SAEP focus countries that lead to USAID

visibility

• Preparation of materials including scene setters, PR material like banners

etc.

In progress: SAEP arranged and hosted a successful virtual Power Africa Madagascar Mini-Grid

Development Grant Winners Announcement event on 23 November 2020 on Zoom with

around 35 participants. The US Ambassador to Madagascar, Michael Pelletier, Minister of

Energy, Water and Hydrocarbons, Christian Ramarolahy, and Power Africa Coordinator, Mark Carrato

were attended and gave remarks.

Y4.PMO.COM.14 Provide copy editing and brand review

to project staff

Helga Wenhold Ongoing as needed Leading practice • Quality, client-ready materials and

documents

In progress. This is an ongoing

activity. All Q1 tasks were

completed.



Lead(s)

Start and End


ENVIRONMENTAL COMPLIANCE AND CLIMATE RESILIENCE

Y4.PMO.ENV.01 Quarterly Review of the Environmental

Compliance

Taryn Bigwood

Quarterly Contractual requirement • EMMP quarterly update as required In progress: on track as already

reported, no update of the EMMP

is required

Y4.PMO.ENV.02 TA on project development documents as required by transactions

Taryn Bigwood As required Contractual requirement • ERFs developed from reviewing each project and transaction

• Review of EIAs and EMMP and advise according to international standard, environmental compliance (with the

county’s legislation) and practical perspective

• Review of environmental licenses,

environmental authorizations and other project documents as required

In progress: on track; 42 ERFs for Year 4 have been completed

and are with PMO for approval

and review

Y4.PMO.ENV.03 Impact on Wildlife from Energy Taryn Bigwood 10/01/2020 – 9/30/2021

Leading practice • Reports on the wildlife interaction

status of five utilities (two in Angola, two in Malawi and Mozambique)

In progress: letters were sent to

EGENCO and EDM and an LOC has been sent to EDM for signing

Y4.PMO.ENV.04 Assistance with environmental reviews and project assistance

Taryn Bigwood As required Contractual requirement • Review of policies and drafted

recommendation on environmental matters

• Recommendations to all assessments

• Recommendations on all environmental planning needed for the energy regulators

Not yet started

Y4.PMO.ENV.05 Assistance with environmental requirements on grants in Madagascar (mini grid grant program); review of

grant applications for environmental considerations and assist in developing an environmental evaluating system for

grant applicants

Taryn Bigwood As needed Contractual requirement • Environmental criteria for grant TOR

• Grant evaluation forms

• Environmental mitigation and

mitigation program template

• Grant applicants training on

environmental and social knowledge gaps

• Grant project environmental

compliance reviews

Not yet started

Y4.PMO.ENV.06 Assistance with environmental requirements on grants in Malawi (SHS

Kickstarter) assist in developing an environmental evaluating system for grant applicants

Taryn Bigwood As needed Leading practice • Grant project environmental compliance reviews and audits

Not yet started



Lead(s)

Start and End


Y4.PMO.ENV.07 Advisory and Assistance to RNT Taryn Bigwood 10/1/2020 – 9/30/2021

Technical Support • Technical comments provided on environmental documents and evaluations, which are detailed as

follows:

‒ 17 reports and studies to be

undertaking by the owner’s

engineer, gender specialist and

social specialist

‒ Procurement process reports for

the Owner’s Engineer, the EPC

contractor, the monitoring and

supervision consultant, the RAP

implementation consultant, the

gender mitigation specialist and the

social benefits specialist

‒ Environmental and Social

Management System Plan

‒ Project manual

‒ AfDB environmental and social

quarterly report

• RNT’s first environmental and social

audit

In progress: all evidence is with OC3

Y4.PMO.ENV.08 Advisory and Assistance to ENDE Taryn Bigwood 10/1/2020 – 9/30/2021

Technical Support • ENDE reviewed documents

• Recommendations to ENDE on best

practice standards for AfDB and World Bank projects

Not yet started: to start in Q2

Activity No Activity Title SAEP Activity Lead(s) Start and End


GENDER

Y4.PMO.GEN.01 Utility gender mainstreaming toolkit Edith Wanjohi 10/01/2020-

12/31/2021

For long term sustainability

EGENCO request • Packaged as a toolkit:

• Gender self-assessment guidelines (completed in Year 3 for EGENCO)

• Gender mainstreaming in utilities and

regulators training manual

• Training reports

Not yet started

Y4.PMO.GEN.02 Support women entrepreneurs in procurement tender process

Edith Wanjohi 10/01/2020- 09/30/2021

Leading Practice • Develop guidelines on how to incorporate gender into the procurement processes

Not yet started



Lead(s)

Start and End


• Train procurement/operations team at EGENCO on guidelines

• Gender specific analysis undertaken

with procurement/operation departments to determine number of women owned businesses that benefit

from procurement value chains in utilities currently and then after new

guidelines are implemented

Y4.PMO.GEN.03 Support SADC Secretariat to implement findings of the SADC Gender Baseline Survey in Southern

Africa Energy regional institutions

Edith Wanjohi 10/1/2020 – 9/31/2021

SADC request • Training on rollout of gender specific indicators to SADC Energy Institutions

with a focus on SACREEE, RERA, SAPP and SADC overall

• Advisory support to SADC Energy

Thematic Group and SADC Energy Ministers on Gender Specific Indicator collection

Not yet started

Y4.PMO.GEN.04 SHS Zambia Gender Mainstreaming Edith Wanjohi 10/1/2020 – 9/31/2021

Request from SHS companies

• Gender specific training for sales agents and managers as part of SFE

• Recommendations for gender hiring

practices within SHS companies

• Initial impact report on gender focus within SHS companies (similar to

PAOP report)

Not yet started

Y4.PMO.GEN.05 SHS Kick-Starter Malawi Gender

Mainstreaming

Edith Wanjohi 10/1/2020 –

9/31/2021

Request from SHS

companies • Gender specific training for sales

agents and managers as part of SFE

• Implementation of gender hiring practices within SHS companies

• Gender specific policies and operational strategies

Not yet started

Y4.PMO.GEN.06 Madagascar Mini-grid Gender Mainstreaming

Edith Wanjohi 10/1/2020 – 9/31/2021

Leading Practice • Discussions with grantees on their incorporation of gender mainstreaming into their mini-grids (this will be

remotely delivered as the grants kick-off)

• Share power points and training

materials on leading practices to incorporate gender and social inclusion into their mini-grid operations

Not yet started

Y4.PMO.GEN.07 Gender mainstreaming for Utility Boards

Edith Wanjohi 10/01/2020-09/30/2021

EGENCO Board Request • Utility board gender mainstreaming leadership development program manual/guidelines (general document

that could be shared with all utility boards)

Not yet started



Lead(s)

Start and End


• Presentation for the training to EGENCO

• Training impact report

• Quarterly progress reports of the impact of the training

Y4.PMO.GEN.08 Gender Analysis for Solar Home System in Malawi, Zambia and Mozambique

Edith Wanjohi 10/1/2020 – 9/31/2021

Leading Practice • Conduct text survey to gather data to study the potential impact of SHS purchase on gender outcomes in

Malawi, Zambia and Mozambique

• Report summarizing the findings

Not yet started

Y4.PMO.GEN.09 EGENCO Gender Mainstreaming Program

Edith Wanjohi 10/01/2020-09/30/2021

EGENCO request • Gender and social inclusion training manual

• Gender and social inclusion training

reports for four to five stations

• Quarterly progress reports on implementation status

Not yet started

Activity No Activity Title SAEP Activity Lead(s) Start and End


ADMINISTRATION AND OPERATIONS

Y4.F&O.CLF.01 Continuous monitoring of Malawi SHS

Kickstarter program

Lorna Jideamah Mpumelelo Mlilo

10/01/2020-

09/30/2021

Contractual Requirement • Continuous monitoring of Malawi SHS Kickstarter program through the following tasks.

In progress: The Malawi

Kickstarter program continues to

operate and the Grantees have

been working hard to find ways of

working on their targets during

the challenging environment due

to the COVID pandemic.

Y4.F&O.CLF.02 Implementation and continuous monitoring of the Madagascar mini-grid grant

Lorna Jideamah Mpumelelo Mlilo

10/01/2020-09/30/2021

Contractual Requirement • Implementation and continuous monitoring of the Madagascar mini-grid grant through the following tasks.

In progress: The Mini Grids launch took place and the 3 subgrantees also underwent

training on reporting and the use of Fluxx Grant Management System.

Y4.F&O.FIN.01 Imprest Submission Zandile Dunge 10/01/2020-09/30/2021

Cash Disbursement Report and Cash Replenishment for Operations

• Cash Disbursement Report

• Imprest Reconciliation

• Electronic Supporting Documents

retention.

• Imprest Audit Findings

In progress: All Imprest reports have been submitted on time according to the reporting

timelines. This allows for accurate tracking of program expenditure and decision making.



Lead(s)

Start and End


Y4.F&O.FIN.02 Processing transactions on Pastel Accounting System

Funanani Makhado 10/01/2020-09/30/2021

Ensure that accurate and complete accounting records are kept

• Monthly Audit file

• Payroll to General Ledger Reconciliation

• Trial Balance and Balance sheet used preparation of Annual Financial

Statements.

In progress: Capturing of transactions on the Pastel Accounting software has been

ongoing on a monthly basis. This results in the creation of the monthly audit file that allows

attendance to any accounting queries on time and the

organization is external or donor

audit-ready at all times.

Y4.F&O.FIN.03 Processing of Payments Zandile Dunge & Funanani Makhado

10/01/2020-09/30/2021

Ensure that all payments are processed

• Disbursement Forms

• Payments to Vendors, ICAs, Staff

reimbursements from both local and FCA Account.

• Funding Zambia Office Operations.

• Payroll Payments

In progress: Payments to all vendors and staff members have

been done as per established routines. There are no outstanding payments to vendors

and staff from Q1 whose invoices were presented to the Finance department.

Y4.F&O.FIN.04 Contracts Administration Mpumelelo Mlilo 10/01/2020-09/30/2021

Ensure that all Procurement, Sub Agreements, Time and Materials (PSM)Contracts

adhere to agreed terms and

conditions during the life of a contract and monitored

Realtime.

• ICA Trackers

• Rental Trackers

• Sub Agreements Trackers’

• Vendors Trackers for PSM

In progress: Realtime contracts management for ICAs and contractors has been ongoing in

quarter 1 and the new contracts

and those renewed updated accordingly in the contracts

register.

Y4.F&O.FIN.05 Client invoicing Rajiv Weeraratne 10/01/2020-09/30/2021

Contractual Requirement • Client invoice reviewed and submitted each period to USAID (thirteen

periods in a twelve-month cycle in accordance with Deloitte yearly financial cycle)

In progress

Y4.F&O.FIN.06 Accruals Report submission Rajiv Weeraratne 10/01/2020-09/30/2021

Contractual Requirement • Accruals submitted 30 days prior to the end of the quarter to USAID

In progress

Y4.F&O.FIN.07 Quarterly Financial Report submission Rajiv Weeraratne 10/01/2020-09/30/2021

Contractual Requirement • Quarterly Financial Report submitted 30 days after the end of the quarter to

USAID

In progress

Y4.F&O.HUR.01 Payroll processing Surita Wentzel 10/01/2020-

09/30/2021

Required by South African

regulation • Calculate all statutory withholdings and

fringe benefits and process monthly staff payroll.

In progress: Payroll activities are

repeated on a monthly basis. There was a successful migration of the Sage Payroll VIP system to

the cloud. This allows online leave application and approvals and dissemination of important staff in



Lead(s)

Start and End


information like pay slips virtually. Staff was also trained on how to use the online platform.

Y4.F&O.HUR.02 Onboard new resources and submit

required approvals to USAID

Surita Wentzel 10/01/2020-

09/30/2021

Based on project

requirements • Resource hiring conducted in line with

project policies and procedures.

In progress

Y4.F&O.HUR.03 Annual staff compliance trainings or

verification


09/30/2021

Required based on Deloitte

policy • Confirmation from staff of annual

compliance updates

In progress: Staff is required to

redo the FCPA and Anti-Human Trafficking training on an annual basis. Supporting documents like the CCN self-clearance form,

CCN self-clearance evaluation form, and proof of training are uploaded to SharePoint on a

continuous basis.

Y4.F&O.HUR.04 Annual staff performance management

evaluation


09/30/2021

Required based on Deloitte

policy • Conduct staff performance evaluations

and document all performance evaluations in personnel files.

In progress: The remaining 2020

performance evaluations were cleared in Q1. Performance evaluations will be used accordingly to appraise both

DCOP and DTSA staff in 2021.

Y4.F&O.HUR.05 Add-hoc activities Surita Wentzel 10/01/2020-

09/30/2021

As required internally • Biweekly inputs In progress

Y4.F&O.OPS.01 Coordinate office administration and operations support - Pretoria office

Moleboheng Sediyadiya 10/01/2020-09/30/2021

Required to maintain office operations

• Program administration and operations support for the Pretoria Office.

Not yet started

Y4.F&O.OPS.02 Coordinate office administration and operations support - Lusaka office

Pricilla Miti 10/01/2020-09/30/2021

Required to maintain office operations

• Program administration and operations support for the Lusaka Office

Not yet started

Y4.F&O.PRO.01 Procurement support for personnel and

office materials

Lorna Jideamah

Mpumelelo Mlilo

10/01/2020-

09/30/2021

Based on project

requirements • All required materials and services

procured in line with project procurement guidelines.

Not yet started

Y4.F&O.STA.01 Meeting statutory requirements (SARS) Mpumelelo Mlilo 10/01/2020-

09/30/2021

Required submission to

SARS based on annual tax calendar

• Submit PAYE, VAT, IRP6, EMP501,

IRP5 Certificates and IT34C to SARS

In progress: All PAYE and VAT

returns have been submitted to SARS for Q1.

Y4.F&O.STA.02 Meeting statutory requirements (CIPC) Mpumelelo Mlilo 10/01/2020-09/30/2021

Required submission of annual returns 30 days after

the date of incorporation (October of each year)

• Submission of annual returns or any changes to registration details through

Disclosure forms

In progress: There has been no requirement to update any CIPC

details and requirements in this quarter.



Lead(s)

Start and End


Y4.F&O.STA.03 Meeting statutory requirements (SARB) Mpumelelo Mlilo Rajiv Weeraratne

10/01/2020-09/30/2021

Required by South African regulation in accordance with the exchange control

act to enable cross border payments

• Obtain exchange control approval

• Obtain exemption from Regulation 3 (1) (c) of the Exchange Control Act

In progress: There has been no requirement to update any regulatory requirements with the

South African Reserve Bank in this quarter.

Y4.F&O.STA.04 Meeting statutory requirements (DOL) Surita Wentzel

Mpumelelo Mlilo

10/01/2020-

09/30/2021

Required by the Department

of Labor to disclose annual payroll turnover, so that an

assessment can be made on

the amount payable towards workman’s compensation

• Obtain a letter of good standing In progress

Y4.F&O.STA.05 Conduct annual external audit Rajiv Weeraratne

Mpumelelo Mlilo

10/01/2020-

09/30/2021

Required by South African

regulation in accordance with the Companies Act

• Management Report and Audited

Financial Statements

• Submit ITR14 SARS and submit annual

return CIPC

In progress: There has been no

engagement with external auditors in this quarter.

Y4.F&O.TRA.01 Develop Travel Authorization Requests and submit for approval

Naresh Totaram 10/01/2020-09/30/2021

Contractual Requirement • TARs developed in line monthly travel schedule and submitted to USAID for

approval.

Not yet started

Y4.F&O.TRA.02 Coordinate project regional travel Naresh Totaram 10/01/2020-09/30/2021

Based on project requirements

• Coordinate with project travel agent, hotels, vehicle rental companies to secure bookings and coordinate

regional travel after TARs are approved.

Not yet started


APPENDIX J PHOTOS FROM QUARTER 1

During Q1, SAEP hosted a virtual event, supported a launch event and conducted virtual trainings. Due to COVID-

19 and current travel restrictions, in-person events and workshops with counterparts in the region are not yet

possible. Below are photo highlights from some of these events, trainings and webinars:

VITALITE AGENT-LEVEL SALES FORCE EFFECTIVENESS TRAINING AND AGENT-LEVEL

REFRESHER TRAININGS, 23 OCTOBER 2020 IN NKHOTAKOTA, MALAWI

After SAEP’s initial virtual SFE manager/supervisor training conducted in June 2020, VITALITE started to

independently facilitate agent-level SFE trainings from 21 July 2020. VITALITE focused on two key SFE modules:

client identification and sales execution. This training is ongoing and takes place in small groups due to COVID-19

protocol and regulations.

Agent-level SFE training and agent-level refresher training led by Vitalite on 23 October 2020 in Nkhotakota, Malawi

LAUNCH OF THE BOTSWANA ROOFTOP SOLAR PROGRAM ON 3 NOVEMBER 2020 AT THE

BOTHO UNIVERSITY IN GABORONE, BOTSWANA

Botswana reached a significant milestone in their journey towards clean energy and energy security with the launch

of the Rooftop Solar (RTS) Program on 3 November 2020 at the Botho University in Gaborone, Botswana. The

program was conceived by the Botswana Government to fulfill the commitments of its 2015 National Energy

Policy, and its submission to the United Nations Framework Convention on Climate Change.

It will enable electricity consumers in Botswana to self-generate electricity via rooftop solar PV systems of up to 1

MW (35 kW for residential consumers and up to 1 MW for Commercial & Industrial) and sell any excess power

generated to the BPC. SAEP assisted with the development and implementation of the program's guidelines.


Minister of Mineral Resources, Green Technology and Energy Security, Botswana, Lefoko M. Moagi’s, and US Ambassador to Botswana,

Craig Cloud at the launch of the RTS Program at the Botho University in Gaborone, Botswana on 3 November 2020


MADAGASCAR MINI-GRID DEVELOPMENT GRANT WINNERS’ ANNOUNCEMENT VIRTUAL

EVENT, 23 NOVEMBER 2020

SAEP helped to arrange and coordinate a virtual live event

for the announcement of the winners of the Madagascar

Mini-Grid Development Grant on 23 November 2020. SAEP

announced Autarsys Madagascar, Hydro Ingenierie Etudes Et

Realisations (HIER), and Henri Fraise Fils & Cie as the

official awardees of the grant. USAID hopes to support

economic development and improve the lives of the

Malagasy people with a USD $1.2 million grant to build or

extend mini-grid electricity in rural areas. The event

included remarks by US Ambassador to Madagascar, Michael

Pelletier; Madagascar Minister of Energy, Water and

Hydrocarbons, Christian Ramarolahy; and Power Africa

Coordinator, Mark Carrato. The event was executed with

great success, thanks to a collaborative team effort between

SAEP, USAID/Madagascar and Power Africa. Minister Ramarolahy expressed his appreciation of USG support and

recognized the importance of the grant for rural Madagascar where the program is expected to electrify an

additional 5,200 businesses and households.

Screenshots from the virtual Madagascar Mini-Grid Development Grant Winners’ Announcement event on 23 November 2020.


FLUXX TRAINING FOR THE MADAGASCAR MINI-GRID DEVELOPMENT GRANT WINNERS,

30 NOVEMBER TO DECEMBER 2020

To promote successful administration and compliance of the grant, the SAEP grants team conducted in-depth

training on how to complete and submit progress and financial reports on the Fluxx grants portal for all grantees.

The training took place from 30 November to 1 December 2020.

THE SAEP TEAM CONTINUES TO COLLABORATE TO ADVANCE ENERGY REFORM WHILE

WORKING FROM HOME (AMIDST A PANDEMIC)


APPENDIX K ASSUMPTIONS FOR CALCULATION AND INVOICING OF FEE

Pursuant to section B.3 (f) of the SAEP contract, Deloitte will include earned fee on the periodic invoice immediately following the COR’s final acceptance of

the SAEP Quarterly Progress Report. Each quarter’s earned fees will not exceed one-twentieth (5%) of the total fixed fee amount, or USD $242,427 per

quarter. This includes a maximum of USD $151,517 for timely submission of all required deliverables during the quarter (Output Indicator #X), and USD

$90,910 for meeting quarterly targets for three Impact Indicators (#Y, #AA, and #AB).

COR acceptance of the Quarterly Progress Reports will constitute acceptance of the performance indicator values included in the Performance Monitoring

and Evaluation Tables presented as an Appendix to that report. With the exception of the first Quarterly Progress Report, which covered the period from

program award to 30 June 2017, SAEP Quarterly Progress Reports will follow the US Government fiscal year.

RECONCILIATION OF DISPARATE PROJECT CALENDARS

At the request of USAID/Southern Africa, Deloitte prepared the SAEP Year 1 Work Plan that covers the period from program award on 15 March 2017

through the end of US Government Fiscal Year 2018. While this simplifies planning and reporting by aligning project years to the US Government fiscal

calendar, it also has the effect of extending Project Year 1 to more than six fiscal quarters.

From Project Year 2 onward, the calendars for Quarterly Progress Reporting, invoicing of fee, and the Government fiscal year will all coincide. In Year 5, this

will result in an abbreviated performance year, with only two quarters for program reporting and invoicing of fee.

TREATMENT OF QUARTERLY AND ANNUAL PERFORMANCE TARGETS

As indicated in SAEP’s approved PMEP, target values for the four Impact Indicators are set on an annual basis. For purposes of quarterly reporting and

calculation of fee, incremental performance targets for Quarters 1, 2 and 3 of each Program year are set at zero, and with Quarter 4 of the Program year

carrying the full annual performance target. In the event Deloitte does not meet the annual performance target, fee may not be invoiced in subsequent quarters

until that target is met. That is, Deloitte may not begin invoicing fee in Q1 of Year 3 if the annual performance target for Year 1 has not been met, even though

the incremental performance target for the quarter is zero. Figure 1 below summarizes the quarterly impact indicator targets for SAEP’s Year 3.

Figure 1: Quarterly Impact Indicator Targets, Program Year 4

Indicator Disaggregation

FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY 21 Total Baseline & Rationale

#AA: Capacity (MW) from transactions

supported by SAEP that achieved financial closure

• Country

• Technology (separating

transmission from

generation)

*note when female

1,900 0 150 100 2,150 0; targets based on transaction pipeline and experience with financial closure timelines and probabilities (includes transmission and

generation capacity)


Indicator Disaggregation

FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY 21 Total Baseline & Rationale

ownership in developer

consortium

#AB: Direct Electricity Access: Number of new

grid and off-grid actual direct connections

• Type of connection • Type of enterprise • Country

105,333 192,765 199,222 220,447 717,767 0; number of new grid connections of off-grid access directly enabled based on OC4 technical

work plan with implementation priority countries

#Y: Number of laws,

policies, strategies,

plans, or regulations, officially proposed,

adopted, or implemented

• Country

• Measure (Clean Energy

standard)7

2 0 0 0 2 0; targets set based on anticipated need for

relevant laws, policies, strategies, plans or regulations in the region

#X: Submission of

required deliverables as per Section F of the Contract

• Type and # of reports • Submitted or not submitted

timely

100% 100% 100% 100% 100% 0; For all Section F deliverables not including the trip reports and other reports which will

be estimated later

#Z: Generation and Transmission capacity (MW) pending financial

closure

Country • Technology/ energy source • Transaction Stage

*note female ownership

10,046.37 10,046.37 10,046.37 10,046.37 10,046.37 Indicator measures new transactions added to

the pipeline to equate to the total amount in the pipeline.

SETTING OF ANNUAL TARGETS IN SUBSEQUENT PROJECT YEARS

Recognizing the importance of balancing accountability with changing conditions over the extended period of performance, Deloitte and USAID/Southern

Africa have agreed to set performance targets for select indicators annually. To enable that flexibility while maintaining accountability and intended incentives,

Deloitte will submit proposed annual targets for the coming year in the Year 4 Work Plan. USAID/Southern Africa acceptance of the FY21Q1 Quarterly

Progress Report will constitute acceptance of proposed performance targets.

RECOVERING FEE IN THE EVENT OF UNDERPERFORMANCE IN A REPORTING PERIOD

Pursuant to B.3 (f) (5), fee amounts unbilled in a given period due to underperformance against targets are not permanently forfeited. With COR approval,

these fees maybe recovered in subsequent periods, when Deloitte returns to meeting or exceedingly quarterly or year-to-date performance targets.

7 Disaggregation: Drafted, Presented, Regional, National, Private Sector Participation, Clean and Cleaner Energy, Small-Scale and Off-Grid Investments, Gender Equity and Country