1. Problem, challenge, and opportunity GHEEA aims to address
As national governments bear the greatest responsibilities in addressing the problems of climate change through robust policies and programs, they remain the best partner to lead the private sector in the just energy transition. A demanding collaborative strategy for developing countries in Sub Saharan Africa is the gradual decommissioning and replacement of distributed fossil generation (DFG) power plants with distributed renewable energy and storage systems (DRESS) across off and weak grid regions. The anticipated outcome is not only to create and increase affordable clean energy access for service productive use of energy (SPUE) in the three sectors, but to advance decarbonization support towards reducing global warming to at most 1.5 degree Celsius by 2050 as per the Paris Agreement countries’ nationally determined contribution (NDC) requirements.
In addition to private sector usage of fossil fuel generators, the Government deploys and runs a high number of distributed fossil power generators in Sub Saharan African Countries across weak and off grid regions to power their decentralized offices and social services institutions serving rural and off-grid communities. Prevalent sites are local government administrative buildings, healthcare centers, and educational institutions. They are often challenged with affordable and reliable power supplies due to the high costs of operations and maintenance (O&M), especially fuel supplies. To respond to these resulting problems of incremental GHG emission, high O&M cost, and unreliable electricity access, an investment driven public-private partnership business model is proposed, and is called Governance Health Education Energy Access (GHEEA).
2. Strategic approach, aim and outcomes
The GHEEA business model supports the supply of equitable and cost-efficient clean electricity to government operated public and social institutions providing services in local government administrative buildings, healthcare facilities, and educational centers through deployment of DRESS power supply systems with potential for future grid interconnections. The Process will develop a mechanism to negotiate Power Purchase Agreement (PPA) trading MOU among the Government, financial intuitions, and energy service providers with shared mutual investment roles and responsibilities.
The intent is to create a public-private partnership space that attracts: 1) Interest of Government entity with DFG facilities to be a project off-taker to lead the energy transition
2) Financial institutions interested in clean energy financing as financial lenders
3) Clean energy projects from developers as service providers.
The GHEEA partnership model aims to create an ecosystem of clean energy financing and investment where the public sector off-taker and private sector developer would secure project financing agreement from the local commercial banking system to increase electricity access in Government’s SPUE facilities.
The expected outcomes of the partnership are:
1) Job creation and skilled manpower development in the targeted communities 2) Reduction in carbon emission footprint from government run institutions 3) Increase clean energy access and institutional productivity with reliable electricity 4) Spurs economic activities through clean jobs for youth and women solar installers 5) Motivates at least 40% initial female participation in solar energy career
6)Reduces Government’s spending on diesel power O&M by at least 50% annually
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