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Solar Nigeria Programme Annual Report August 2018 – July2019

August 2019

DFID Solar Nigeria AR Aug 2018 Report REPORT

Acronyms i

Executive Summary 1Background..................................................................................................................1Report structure...........................................................................................................1

Recommendations from the last Annual Review 3

1 Outcome Achievements 7

2 Commercial Workstream 122.1 Background..........................................................................................................122.2 LogFrame progress...............................................................................................132.3 Key achievements................................................................................................132.4 New developments...............................................................................................142.5 Key activities and achievements..........................................................................142.6 Challenges............................................................................................................162.7 Recommendations................................................................................................16

3 Consumer Workstream Update 173.1 Background..........................................................................................................173.2 LogFrame progress...............................................................................................183.3 Key achievements................................................................................................193.4 New developments...............................................................................................193.5 Key activities and achievements..........................................................................203.6 Challenges............................................................................................................203.7 Recommendations................................................................................................21

4 Social Workstream 224.1 Background..........................................................................................................224.2 LogFrame Progress...............................................................................................224.3 Key Achievements................................................................................................224.4 New Developments..............................................................................................234.5 Key activities and achievements..........................................................................234.6 Challenges............................................................................................................244.7 Recommendations and next steps.......................................................................24

5 Government Workstream Update 255.1 Background..........................................................................................................255.2 LogFrame progress...............................................................................................255.3 Key achievements................................................................................................255.4 New developments...............................................................................................25

6 Results Monitoring 266.1 Key activities and achievements..........................................................................266.2 Challenges............................................................................................................276.3 Recommendations................................................................................................28

7 Value for Money 297.1 Economy...............................................................................................................297.2 Efficiency..............................................................................................................297.3 Equity considerations...........................................................................................30

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7.4 Effectiveness........................................................................................................317.5 SNPVfM quantitative results.................................................................................32

8 Programme management updates 358.1 Staffing.................................................................................................................358.2 Solar Nigeria Organisation Chart..........................................................................358.3 Programme management.....................................................................................368.4 Communications...................................................................................................36

Annex 1: LogFrame UpdateAnnex 2: VFM UpdateAnnex 3. Risk matrixAnnex 4: ApprovalsAnnex 5: ToR Update

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ACRONYMS

AC Alternating CurrentAPG Advanced Payment GuaranteeAPT Advisory Power TeamASI Adam Smith InternationalC&I Commercial and IndustrialCDC Centre for Disease ControlDC Direct CurrentDEG Deutsche Investitions- und Entwicklungsgesellschaft mbHDFI Development Finance InstitutionsDFID Department for International DevelopmentECOF Energy Company of the FutureEU European UnionFCAS Fragile and Conflict Affected StatesFGN Federal Government of NigeriaFMO Dutch Development BankFOREX Foreign ExchangeFY Financial yearGHG Green House Gas EmissionsGIZ German Society of International CooperationICF International Climate FundIDP Internally Displaced PopulationsIFC International Finance CorporationKAPSCO Kaduna State Power Supply CompanykWp Kilowatt PeakLF Log FrameLSEB Lagos State Electricity BoardLSPHCB Lagos State Primary Health Care BoardM&E Monitoring and EvaluationMDAs Ministries, Departments and AgenciesMM Mobile MoneyMoE Ministry of EducationMoU Memorandum of UnderstandingMWp Mega Watt PeakNEP Nigerian Electrification ProjectNPSP Nigerian Power Sector ProgrammeNSP National Solar PlanO&M Operation and MaintenanceOVP Office of the Vice PresidentPAHL Pan African Hybrid LimitedPAYG Pay As You GoPHCs Primary Health Care CentrePIDG Private Infrastructure Development GroupPMU Project Management UnitPPAs Private Purchase Agreements

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PV Photo VoltaicREA Rural Electrification AgencyREPP Renewable Energy Performance PlatformRM Results MonitoringRRR Reconstruction, Rehabilitation and ResettlementSHS Solar Home SystemSME Small to Medium EnterpriseSN Solar NigeriaTA Technical AssistanceUAE United Arab EmiratesUSAID United States Agency for International Development VfM Value for MoneyYTD Year Till Date

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EXECUTIVE SUMMARY

This report provides an overview of the activities of the DFID Solar Nigeria Programme (SNP) over the last nine months from September 2018 – May 2019 (March for Private sector workstreams). In this report, the SNPteam provides an update on progress against the LogFrame targets, the activities and achievements that contribute to these, highlight the risks and challenges which have affected delivery and provide recommendations on proposed plans to be undertaken during the rest of the year.

The report provides a narrative overview of nine months, from September 2018 to May 2019 and provides an update on LogFrame performance since the last Annual Review in August 2018 as well as the 2019 year to date progress.Updates will be made to the log frame in January 2020 to demonstrate achievement against 2019 annual targets. The report is intended to feed into the SNPAnnual Review taking place during the week of the August 5th 2019.

BackgroundSolar Nigeria aims to improve access to clean, affordable energy for poor communities through education and health facilities and scaling up the private markets for off-grid solar solutions.The programme is supported by the United Kingdom (UK) - Department of International Development (DFID) with original funding of £37.10 million provided from the International Climate Fund (ICF) in the later part of 2014. In addition to this initial funding, in 2016 Solar Nigeria secured two new extensions from DFID, with an additional budget value of £16.70 million and £4.26 million. The current total programme budget until 2020 is £58.06 million.

The SNP is currently being implemented by two partners, Adam Smith International and AECOM who are responsible for delivering different components of the programme. This report only relates to the Adam Smith International (ASI) component of the programme and any reference to SNP in the report will refer to ASI managed portfolio.

The ASI component of the programme is delivered through four workstreams.

Consumer:The Consumer Workstream aims to accelerate Nigeria’s private markets for household and micro-enterprise power using small solar systems. Under this workstream, Solar Nigeria provides grants and TA to attract capable companies into the market, help them overcome initial barriers, and mobilise finance for both consumers and the supply chain.

Commercial: The Commercial Workstream aims to facilitate access to finance to increase investment in the commercial solar sector.Under this workstream, Solar Nigeria provides grants and TA to attract capable companies into the market, help them overcome initial barriers, and mobilise finance for both consumers and the supply chain.

Social: The social workstream aims to support the installation of off grid solar in government social institutions for health and education. The Social Workstream provides technical assistance (TA) to support the design, delivery and monitoring of solar installations in schools and health facilities in Lagos, Kaduna and Borno.

Government:The government workstream aims to improve the enabling environment for off grid solar in Nigeria. SNPis working with the Federal Government of Nigeria (FGN) via the Office of the Vice President (OVP) on the development and scale up of solar energy in Nigeria. Support includes provision of an embedded advisor in the VP’s office and ad hoc advisory support on policy and regulatory issues.

The delivery of each of the workstreams is supported by a Project Management Unit which coordinates, oversees and monitors all activities, as well as providing financial, logistical and administrative support to ensure successful programme delivery.

Report structureSince 2018, majority of SNP’s technical assistance (TA) and capital funding (82%) have been expended on the private sector workstreams i.e. Consumer and Commercial and the report structure is modelled to represent this.

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The report provides an update on the following:

Current progress against annual outcome indicators (Section 1);

Outputs covering updates for all 4 workstreams, including update on log frame targets, key achievements, activities, challenges, and recommendations (all workstreams – section 2 – 5);

Update on activities in M&E and proposed changes to processes (Section 6);

A brief update on Value for Money (Section 7);

An update on programme management (section 8);

The annexes contain an updated log frame, an updated risk matrix, a list of approvals from the quarter and outstanding approvals(Annex 1 – 5).

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RECOMMENDATIONS FROM THE LAST ANNUAL REVIEW

SNP received the DFID Annual Review Recommendations in May 2019 given the short turn-around-time to implement these recommendations, new timelines have been proposed. The programme team has worked hard to fast track the completion of recommendations in the relatively short time since receiving these. Nonetheless many of the recommendations have been completed with a number in progress and expected to complete in the coming months. Below we have provided a summary of the recommendations made and SNPprogress in the past three months.

Area Recommendations Proposed Action/ Approach/Strategy Responsibility Timeline Status/

Progress comments

Programme Delivery (Programme Logframe)

In the coming year there will be ongoing procurement under the social component utilising funding from the EU, and successful delivery of these projects will be a priority. The logframe should be updated to include results from these interventions, as well as capture changes to the commercial component, making clear where DFID is contributing but not counting them as wholly attributable to DFID.

1. SRO to meet with the Programme to agree on a revised Logframe.

AECOM/DFID/ASI *October 2019 In progress

Commercial attribution based targets: a possible method identified and advised to DFID 27/5/19.

Programme Monitoring(O&M)

The programme should intensify efforts to support the development of operations and maintenance regimes in those states where Solar Nigeria has installed systems. The ASI team should develop a strategy for early engagement in each state after the 2019 elections, and have support packages ready to offer to incoming administrations.

Engagement with ASI on ASI managed installations as well as AECOM to also provide insights on O&M where they are working.

ASI *October 2019 In Progress

This will need to be funded given significant SNPbudget constraints.

A large World Bank programme supporting various areas of off-grid energy development has been

Engagement with the WB. Contact details: DFID/ASI *August2019 Completed

SHS Exit Plan provided to DFID in Feb 2018. WB engagement and

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approved and is beginning interventions. Solar Nigeria should engage with the World Bank team to ensure sharing of lessons and opportunities, and develop an exit plan across components.

Jon Exel at the World Bank is leading their off-grid programmes being delivered through the REA.

lessons sharing: The majority of exit needs are addressed by REA programme.Further Exit Plans to be developed for Consumer and C&I by November 2019.

Output 1

It is very positive that an operations and maintenance contract has now been put in place by Kaduna State Government . It is recommended that the ASI team engage with the new O&M contractor, and DFID should be open to the possibility of funding any once-off work needed to ensure that that all systems meet the requirements underpinning the contract for O&M services.

Further engagement with Kaduna State Government post elections.

ASI/DFID *October 2019 In progress

SNPhas continued to engage with the O&M contractor. However, non-release of funds by the Kaduna state government has meant that O&M activities are stalled. Conversations to resume in the post-election/ appointment period.

Output 2

It is recommended that the logframe be amended to reflect progress and expected results resulting from the commercial and industrial power (C&I) initiative seeing as the IFC commercial pilot component has been discontinued.

Engage with DFID on LogFrame review process

DFID/ASI *October 2019 In progress

SNPto determine and propose new C&I logframe targets to DFID.

Output 2 As the grants programme ends this financial year, a major recommendation is to share the experience of this programme with the forthcoming World Bank programme.

Engage with the WB ASI May 2019 Completed SHS: Leigh was engaged directly by WB for this purpose in 2017/18 and designed the SHS component of the WB funded REA programme. Verbal agreement with SHS lead in Jon Eel’s team to continue providing informal advice in the months ahead.C&I: WB programme

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scope does not include C&I.

Output 3

The Review team thought the innovative consumer finance initiative being launched by Lendable has potentially large benefits for this and other consumer markets. The team recommends continuing to work on the consumer finance issue.

Engage with ASI ASI *December 2019 Completed

SNP recommendation to DFID 28/5 to support release of final grant disbursements to Lendable & Nithio as a key step implementing this intent.

SNP to conduct a deep review on the outlook for the Mobile Money / payment access / barriers in Nigeria as a foundational aspect of enabling consumer finance for SHS access to thrive and to reach towards those with low financial access, with the same relevance for consumer finance generally.

Output 4

Effort should continue to secure a tariff regime that is supportive to the importation of solar systems and devises.

Engage with ASI/ Leigh. DFID N/A

Status dependent on funding

This is not feasible given funding constraints.

Success here requires high level political leverage and significant funding. OVP/REA implementing the WB/AfDB funded programmes are best placed to secure this.

2. If funds permit, technical assistance should be offered to any incoming administration to help explain the economic and development benefits being achieved through the expanding use of solar energy in Nigeria.

Engage with champions of change or wider PDF3 programmes or SRO/ Mahesh.

DFID/ASI N/AStatus dependent on funding

This is not feasible given funding constraints.

The same administration continues and formerly DFID funded champions

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are driving off grid solar uptake aggressively and successfully. Given the SNP funding constraints, this activity is best left to other programmes.

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DFID Solar Nigeria Annual Report 2019 REPORT

1 OUTCOME ACHIEVEMENTS

A summary of performance to date for each of the outcome indicators is provided below. This is for the period from the last review period till date. For the Social Workstream, the results are from September 2018 to May 2019 while results for the Private Sector are from September 2018 through to March 2019. An indication of performance and expectations for the remainder of the year is also provided. Further detail about the outputs that contribute towards these outcomes have been provided within the individual workstreams sections.

Indicator Reference Indicator Description Planned2018

Actual2018 (Achieved since last annual review) Planned 2019

Actual 2019 (Jan – May) Comment

OutcomeIndicator 1

Social: (Lagos, Kaduna, Borno): Total number of beneficiaries of schools, clinics and hospitals receiving welfare benefits in a given year from cleaner and more reliable energy as a result of the programme activities

535,069 685,843(362,264)

544,421 318,180 Significantly exceeded 2018 target. On track to meet or exceed annual 2019 targetThese beneficiaries are spread across:

149 out of 175 schools; 9 out of 11 PHCs in Lagos; 23 out of 34 clinics in Kaduna; and 3 hospitals in Borno.

Social: (Lagos, Kaduna, Borno): Number ofFemale beneficiaries of schools, clinics and hospitals receiving welfare benefits in a given year from cleaner and more reliable energy as a result of the programme activities

319,025 415,304 324,734 185,724 Significantly exceeded 2018 target. On track to meet or exceed annual 2019 targetThese beneficiaries are spread across:

149 out of 175 schools; 9 out of 11 PHCs in Lagos; 23 out of 34 clinics in Kaduna; and 3

hospitals in Borno.

Outcome Social:(Lagos, Kaduna, Borno):

97% 86% 96% 84% Belowannual target for 2018 and 2019.Potential to improve performance of this indicator

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Indicator 2 % of PV systems in public institutions installed under the programme still operating over 90% after a 12-month period (PV systems are sustainable)

by 2019 year-end following the receipt of spare parts by LSEB and commencement of O&M implementation in Kaduna and Borno.Lagos: 85%Kaduna: 67% Borno: 100%

Indicator Reference Indicator Description Planned 2018

Actual 2018 (Achieved since last annual review) Planned 2019

Actual 2019 (Jan – Mar) Comment

OutcomeIndicator 3

Consumer: Number of beneficiaries with improved access to clean energy in a given year as a result of the programme activities

918,909 1,329,085(634,020)

1,850,581 289,650 Significantly exceeded expectations for the 2018 review period. Too early to forecast full year 2019.2019 performance based on the March quarter alone. If sales continue at the recent average the 2019 actual would be 70% of target. However, significant expansion of market capacity by grantees could realistically triggerthe expected increase in growth rates to drive results above target during the year.(NB: Actual number of systems sold x 5 people per household)

Outcome Indicator 4

Cross-Cutting: Volume of private and public investment mobilised across Solar Nigeria Programme components (£, million)

Social:0.0

Consumer:3.6

Commercial:0.0

Social:0.0

Consumer:21.6(10.1)

Commercial:4.5(4.7)

Social:0.0

Consumer:27.4

Commercial:0.75

Social:0.0

Consumer:3.82

Commercial:0.0

Exceeding expectations for 2018. On track to meet 2019 annual target.

Consumersignificantlyexceeded expectationsin the 2018 portion of the review period. Forecasting for 2019 is difficult as investment tranches for up-scaling tend to come in large steps. The $9m secured by Arnergy in April 2019 quarter (not reflected in reported results yet) puts the YTD performance trend on track to meet target.

Outcome Cross-Cutting: Social:2,107 Social:2,150 Social:2,085 Social:878 Exceeded expectations in 2018. On track to meet 2019 targets.

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Indicator 5 Greenhouse gas emissions avoided/reduced in a given year as a result of Solar Nigeria Programme support (tCO2e)

Consumer: 261,710

Commercial:485

Consumer: 221.027(123,401)

Commercial:730(709)

Consumer: 452,629

Commercial:1,634

Consumer: 73,060

Commercial: 644

Social: On track to meet annual target.

Commercial: Significantlyexceeded expectationsdriven by installed capacity of C&I solar running ahead of target.

Consumer: In the 2018 review period ran at about target rate. It is too early to forecast a full year position with confidence due to some volatility between quarters and a significant reliance upon how rapidly the market responds over the coming two quarters to initiatives that will increase supply.

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Outcome Indicator 1: Number of beneficiaries

The programme is on track to meet and exceed expectations.

Since inception, the number of beneficiaries attending the schools and clinics and benefiting from solar has increased steadily. Further increases in attendance at clinics are expected over the next 6 months (June – Dec 2019) period at the clinics.

Outcome Indicator 2: Number of PV working

This is currently below expectations with potential to improve by year end.

In Lagos, a number of sites reported issues which have caused Pvs to be non-functional over a period of time. These issues have been caused by a variety of technical malfunctions; however, the underlying causes appear to be the breakdown of inverters at schools and clinics and the inability of the available LSEB budget to cover those repairs or replacements. Recent supply of spare parts by DFID and upgrade in the technical ability of LSEB staff should address the problem and increase in the numbers of functional systems in the coming months.

In Kaduna, 11 sites were reported to be non-functional during the period under review. These issues are as a result of delayed implementation of the O&M contract by the Kaduna State government which is yet to commence. Though the government signed a contract with the contractor, they are yet to release funding for activities to begin.

Sites in Borno remain in working order, with one site (Dikwa) partially functional. SNP will continue to monitor the sites and report issues to DFID.

Outcome Indicator 3: Consumer units

Progress on this indicator is significantly exceeding expectations for 2018. The Sep and Dec quarters of 2018 delivered 70% of the full year target, in line with the full year result of 40% above target. It is too early to form a meaningful view on progress towards the 2019 calendar year targets based on the single quarter of data (March 2019) that is available at present.

Consumer Outcomes rest upon the output of the number of small solar systems sold to consumers. Interventions in these markets tend to have several years during which solar providers get established followed by several years of rapid growth. This was impacted by the economic downturn of 2016-17 and then a significant delay in the timing of grant release by DFID. There are some indications that rapid growth may commence this year for the following reasons: longer established solar providers are expanding; the strong new entrants are progressing through their pilot phases; the REA’s NEP programme is likely to begin disbursement during 2019 and finally; investors are beginning to put their capital into these solar providers enabling them to then grow rapidly after each injection of cash.

Outcome indicator 4: Investment mobilised

It is expected that the combined Private Markets investments will exceed or significantly exceed the full year target.

Private investment in the markets for small solar and for financed Commercial solar can mobilise very rapidly and in large tranches as markets move from the pilot and pioneer stages towards scale. Several grantees have entered this phase. Recent capital raisings (not yet included in the review data) include Arnergy $9m, PAS Solar $10m syndicated round; Rensource (in progress) on a $25m round. The historical approach to tracking this indicator was very conservative based on the value of outputs capacity installed. As the market moves to scale a more responsive approach will be to track the large investments as they are secured.

Outcome indictor 5: GHG emissions

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The largest contributor to total GHG emissions reduction is the Consumer market. This is because of large total installed capacity of PV and also because these systems displace some of the most inefficient energy sources (e.g. a kerosene lantern emits 3x as much CO2 as the same fuel used in a generator to them provide electric light). GHG emissions reductions come from the total installed base of solar. This means that the output in the current period rests upon all the systems installed since the programme began and that the output is impacted not only by the capacity of solar installed but by the phasing of those installations. During the review period, there have been two instances where disbursement of substantial amounts of grant were delayed for periods of 6 to 8 weeks while SNP awaited responses from DFID on those disbursements. Those delays feed in not only to reduced outputs in the review period but build in under-performance in later periods that cannot be caught up.

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2 COMMERCIAL WORKSTREAM

2.1 BackgroundThe commercial workstream seeks to develop the market for Commercial and Industrial (C&I) power. This emphasises captive power (not grid connected) with a focus on removing barriers to the flow of commercial finance through the value chain.

Support to the commercial use of solar was originally planned to be implemented by the IFC. DFID discontinued this approach and closed the IFC Trust Fund during 2018. This approach was discontinued after the IFC suspended new lending to Nigerian banks during the recent recession and two potential individual transactions put forward as possible alternatives to achieve similar objectives through the IFC, failed to close.

After DFID took the decision to close the IFC Trust Fund, the ASI SNP team informed DFID of the potential available for a similar approach to support some market participants in C&I by trying to develop new commercial markets. DFID concluded that this was worth supporting and approved some grants to commercial rather than household market participants, from within the originally agreed ceiling for grants.

Consequently, implementation developed in three phases:

1. IFC Financial Innovations Group: Under the Business Case, IFC was to pioneer commercial financing for solar in Nigeria. This did not perform to expectation. No solar capacity was installed under this component. The IFC work is not under the remit or management of ASI and so is not reported further here.

2. ASI Commercial Pilot: Created to bridge initial delays in the IFC component. The aim was to mobilise some demonstration projects, to help the IFC then develop project pipelines. This was useful because prior to 2015 very few C&I solar projects had been commissioned by private sector end users.

The pilot aimed to motivate end users to invest in their own captive solar system. The pilot offered a portion of grants to help create interest and commitment for some demonstration investments. In this way, the grants would leverage private sector investment. The pilot was focussed in the northern industrial centre of Kano to ensure manageable logistics. In all other respects, the transactions were fully commercial and private, with end users and solar developers agreeing terms. Grants were allocated through a competitive process in early 2016. A local developer (Rubies) was awarded grant to support five small projects. An international developer (Enerwhere) was awarded grant to support two larger projects. A little over 1 MWp of solar capacity was installed under this component by early 2018.

3. ASI C&I Market Development: Created following the decision by DFID to discontinue the IFC approach, the aim was to accelerate the development of a private market in Nigeria for C&I solar provided to the end user bundled with finance. While the Commercial Pilot focussed on individual solar projects, the Market Development component invests in the wider business plans of developers, to develop portfolios of products, test business models, and then mobilise the commercial investment needed to up-scale the provision of financed C&I solar. The initiative commenced in March 2018 and isfunded from the existing budgets provided for the Consumer / Household workstream.In early 2018 the initiative established quickly. A pool of very capable C&I developers willing to enter the market and provide finance were recruited. The final developer was secured in the December 2018 quarter (RP Global). Grantees are now implementing their initial plans. Typically, those plans have assumed the first large systems would be commissioned within the first 12 months after entry. These early steps of finding first customers and securing commercial investors are well underway.

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2.2 LogFrame progress

Indicator Reference

Indicator Description

Planned2018

Actual2018 (Achieved since last annual review)

Planned 2019

Actual 2019(Jan – Mar)

Remarks

Output Indicator 2.1

Installed capacity in the private sector and other institutions as a result of the programme activities (MWp)

1.0 2.18(1.16)

1.0 0 Significantly exceeded expectation for 2018. On track to significantly exceed the target for full year 2019.

1.3 MWp commissioned in December 2018 quarter, taking 2018 actual to 2.3 Mwp versus target of 1.0 MWp.

Solid pipeline of projects in progress for 2019 commissioning is 5.3 MWp against a target of 1.0 MWp.


Total £ (million) of private investment mobilised by the commercial pilot / £ (million) value of spend by Solar Nigeria Programme on commercial pilot

Not applicable.Previously achieved.Commercial Market Development initiative is substantially exceeding expectations. Against a target of nil investment, $8.7m has been secured in the review period, although nil in the Mar 19 quarter. A conservative forecast for 2019 is an additional $5.0m but this could easily be larger as a result of investment tranches for future growth.


Total value of lending portfolios developed (£ million) - IFC component

Not applicable.The indicator is now redundant because the IFC component was discontinued with no output.

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2.3 Key achievements

2.4 New developmentsThe Commercial and Industrial (C&I) power initiative aims to accelerate the development of a Nigerian market to provide C&I power users with privately financed solar. It takes a different approach from the earlier Commercial Pilot overseen by ASI. The pilot provided grant funding for individual solar projects while the Market Development phase provides grant funding to support business plans. The business plans aim to provide solar with finance in form of power purchase agreements (PPAs) and to activate large pipelines of projects.

The grant serves to entice capable companies to enter the market and move more rapidly to accelerate expansion and mobilise the funding needed to do this by mitigating their risks. The market has responded quickly to the kick-start provided by the programme from early 2018. Grant helped to enable the underpinning of the business and investor risk of the early projects. The solar developers indicate that the demonstration and profile of the early projects supported by Solar Nigeria has encouraged investors to look more closely into the Nigerian market. Investors are finding that the business is commercially viable and so are moving very quickly to support it.This is a good example of the sort of market acceleration that the grants were intended to bring about.

Market development is impeded by significant constraints across the value chain. Barriers impact the energy users, the financiers and the developers. These constraints must be overcome for the market to thrive. Constraints on energy users include the capital cost hurdle of access to solar and lack of access to finance to overcome it. Constraints on developers are the high cost of market entry, forex risk, high interest rates, reluctance of financiers to accept solar assets as collateral, and investor risk aversion. Financiers are constrained by reluctance to enter a new lending category, high cost of funds, currency devaluation, and concerns about entering Nigeria. The grants offer simple grant instruments to help capable companies overcome these constraints.

2.5 Key activities and achievements

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Key achievements:

- 3.2 MWp commissioned:All C&I grantees progressing rapidly towards scale and private investment.

- The pipeline of financed C&I systems of grantees is strong: Installations through 2018 and 2019 on track to exceed 7 MWp against a combined target of 2 MWp.

- Increased investors interest: Good evidence that the intervention is likely to succeed with grantees attracting the attention of serious investors. Cross Boundary raised $30m regionally and within this has $8m of Nigerian proposals issued; PAS secured $2.6 of third-party private investment for its initial projects; Rensource syndicated another $5m for its market cluster project [other funding tranches to be confirmed but a $25 m round was underway].

- Final C&I award: Another strong capable regional player RP Global, with access to large internal capital resources, entered into the Nigerian market through SNP support.

- Battery recycling venture: PAHL completed grant supported market viability study and is now moving towards establishing a business to recycle solar waste to international standards (none currently done in Nigeria)

- A pioneering innovation: Cold Hubs is providing solar powered refrigeration for stall holders in produce markets on daily piece hire basis.


All solar developers awarded grant during earlier review periods are progressing well against plans

The developers awarded grants in the previous period have moved steadily against their plans to enter, establish, pilot and then raise finance. While most faced challenges, these were reflected as time delays rather than major derailments, and delayed disbursement of grant amounts payable against progress.Those developers are leading providers of financed C&I solar: Cross Boundary Energy (SSA leader in financed C&I), Enerwhere (UAE market leader in financed C&I), Pan Africa Solar (leading solar developer), Rensource (emerged as Nigeria’s leading provider of energy service to large market centres).

Final award of C&I grant

The final award of grant during the review period for C&I was to RP Global. A strong regional plyer in off grid and C&I, backed by a strong global group with access to large capital flows for investment. RP Global spent many months attempting to enter Nigeria by forming partnerships with existing local solar developers, following introductions by SNP. For various reasons these efforts failed to lead to viable pathways for the business or for grant support which led to RP Global entering the market with no local partner. With its regional expertise, RP is now moving ahead more quickly and will be able to tap into its internal capital to fund rapid growth.

Significant installed capacity and investment mobilised

The most advanced of the developers are now well underway. Significant solar capacity has been installed and a great deal more is likely to be installed and commissioned over the coming few months.

Rensource Productive Clusters:Dawanua Granary Market (Kano, Nigeria’s largest grain market) and Eriwe Fish Farm will pioneer the use of micro-utilities for productive use clusters beyond dense retail markets. The additional costs and risks in these first attempts warranted grant support. The Pilot phases in December 2018 installed 140kWp. Phase 2 will install an additional 2 MWp due to commission in August 2019.Investment was secured by Rensource with investor syndication contracts for $5 million signed. This fast traction was enabled because the SNP grant underpinned the early demonstration risk. Investors on this phase include Trina Solar (a global leader in solar panel manufacture).

Rensource C&I: 750 kWp was commissioned in Sabon Gari marketin the December 2019 quarter. The next 750kWp has been ordered and its commissioning is imminent. Another 275 kWp will be commissioned in December2019while an MOU has been signed to install 1.2 MWp for yetanother market this year.These are all part of – and the pioneering projects – for the REA initiated Energizing the Economy programme. The Rensource single user rooftop C&I activity was on hold while the above initiatives took priority, but is now back up and running with 3 pilot sites identified.

Pan Africa SolarBattery Recycling: There are no facilities for recycling lead acid batteries that meet world class standards in Nigeria as lead acid batteries are recycled through the informal sector. This gap was noted it the original Solar Nigeria Business Case. Pan Africa Solar was supported with grant to assess the needs and opportunity for a commercially viable solution. The assessment report was completed and PAS has committed to progress withearly steps to establish such a battery recycling enterprise. This would serve the entire solar sector and other sectors using lead acid batteries in Nigeria.

Pan Africa Hybrid Limited (PAHL) C&I activity: Signed Power Purchase Agreements (PPAs) with clients in the December 2018 and March 2019 quarters to provide 1.5 MWp of solar capacity.

PAHL Solar Water Heating: SNP introduced PAHL to Orb Energy in order to explore the feasibility of using Solar Water Heating technology to displace diesel boilers for processing heat in industry. Albeit outside the scope of Solar Nigeria, this initiative was recognized as an opportunity to further expand the uses of Solar power in the country.

PAHL Financing: Signed funding contracts for $2m in Dec/Mar quarters with the DFID funded Renewable Energy Performance Platform (REPP) initiative. REPP is managed by CamCO. CamCo has indicated a firm interest in supporting C&I projects in Nigeria and has submitted a concept note to the REPP board to support the C&I industry in Nigeria. In the case of PAHL, CamCo has held initial discussions for a possible syndicated funding round with investors including CrossBoundary Energy.

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Further discussions were scheduled in Q2 2019. DEG and FMO have also indicated interest in supporting the business once pilot projects are up and running.

2.6 ChallengesThe progress of the C&I Market Development programme has demonstrated well the paradigm that lay below the design of the programme. There were (and are) many challenges remaining in the market but if the underlying business can be viable, then very capable players can overcome the secondary barriers. The key is to help these players bear the risk of testing the viability of the market. Having determined that the C&I market is viable, they are finding routes through the challenges.

Challenges are mostly regarding investment and finance. Interest rates in Nigeria remain high and funding in US Dollars is exposed to devaluation risk. A

key role of the grant initially is to buffer this risk. Investors can now see the viability of the business – notwithstanding the challenges.

Further out there is a potential constraint on the market’s reaching massive scale. This is due to credit risk attached to the solar users who also need finance. Initial work has focussed on multi-nationals and blue-chip Nigerian entities and to date solar providers have not evaluated deeply the prospects or challenges in this.Therefore, questions such as, “Who will provide that finance and bear the risks once the blue-chip companies have been served?” remain as the depth of the pool of creditworthy customers is not yet clear.Ultimately, market growth will depend upon going beyond these, into the SME pool.

2.7 RecommendationsFrom all indications, the C&I intervention will succeed as the pool of capable grantees move into view of larger DFI and commercial investors. The main lesson is really that a flexible grants programme investing relatively modest amounts can deliver strong results and help create a pipeline of potential investments for entities such as PIDG or CDC or REPP that would be unlikely to invest at the early stage when grants are appropriate and amounts of capital required are typically not large enough to fit their profile for investment.

The areas of activity proposed as the focus for the final year would be: Manage the existing portfolio of grantees: This includes monitoring performance; completing

final disbursements of grant as final milestones are met; applying corrective and/or compliance action where this might be warranted; managing the grant budget (and risks) until full disbursement.

Tell the stories: Examine the experience of the programme and grantees. Develop stories of success, impact and lessons. Write and promulgate the stories.

Identify Future Intervention Opportunities: Identify needs and opportunities (to the extent they might exist) for future interventions. These may include gaps remaining in the market for C&I such as the issue of SME Credit, or new markets or technologies not yet established in Nigeria that could deliver similar benefits in energy access.

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3 CONSUMER WORKSTREAM UPDATE

3.1 Background

The Consumer Workstream aims to accelerate Nigeria’s private markets for household and microenterprise power using small solar systems. It achieves this aim by enticing capable solar providers and financiers to enter the Nigerian market and to then rapidly expand their reach to consumers with solar products and financed solar solutions. Under this workstream, SNP provides grants mainly to companies with all the capabilities needed to scale in order to help them overcome remaining barriers and mobilise finance for both consumers and the supply chain.

The economic downturn of 2016-17 impacted momentum of this workstream and the programme helped key players to refine their operations and remain in the market while awaiting better conditions. LogFrame targets were revised in 2018 to reflect the hiatus. The methodology was to delay targets by 18 months before returning to the original forecast trend.

Results for 2018 exceeded theLogFrametarget asit appears that the market recovery commenced earlier than was forecastedHowever, the latest assessment of the growth trend (through to March 2019) suggests that there might be a levelling off. Achievement of the 2019 full year LogFrame targets would depend on an increase in the rate of growth of sales by grantees. This remains possible, in particular if the Nigerian Electrification Project (NEP) commences soon. However, predictions remain uncertain.

Momentum in the market and the programme rebounded strongly during 2018. A strong pool of the world’s leading actors in SHS were enticed to enter Nigeria. Although it will take another 1-3 years until they move through establishment and pilot phases to begin potentially delivering significant outputsi.e. entering an exponential growth phase that has characterised other similar markets for the several years after strong players become established.

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Indicator Reference


Planned2018

Actual2018 (Achieved since last annual review)

Planned 2019 Actual 2019(Jan – Mar)

Remarks


Installed capacity in the private sector as a result of the programme activities (MWp)

2.63 MWp

4.15 MWp (1.72MWp)

5.3 MWp 0.83 MWP Significantly exceeded expectation for 2018. Difficult to predict full 2019-year performance

In 2018 results achieved were substantially above target.It is too early to forecast full year 2019 performance based on one quarter, and with significant variance from quarter to quarter. If sales continue flat at the recent average rate the 2019 actual would be 70% or target. However, significant and progressive expansion of market capacity by grantees continues and could realistically drive results above target.


Number of small solar lighting or power systems acquired by private consumers as a result of the programme activities

180,000 265,817(137,197)

362,500 57,930 Significantly exceeded expectation for 2018. Difficult to predict full 2019-year performance

2018 December quarter completed a 2018 result substantially above target, with 265,817systems against a target of 180,000. It is too early to forecast full year 2019 performance based on one quarter, and with significant variance from quarter to quarter. If sales continue flat at the recent average rate the 2019 actual would be 70% or target. However, significant and progressive expansion of market capacity by grantees continues and could realistically drive results above target.


Volume of private investment

13.6 21.2(9.67)

27.4 3.8 Consumer exceeded target in the 2018 portion of the review period.On track to

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mobilised across consumer markets component (£ mil)

meet full 2019 year target.

The $9 m secured by Arnergy in April 2019 quarter (not reflected in reported results yet) puts the YTD performance trend generally on track to meet target. This trend could drag or accelerate substantially based upon future investor activity.


3.4 New developmentsThe LogFrame targets for 2018 were exceeded substantially. Progress towards the higher 2019 targets is less clear as only March Quarter data is available.

Follow-on support to the market is shaping up strongly:

The SHS component of the Nigerian Electrification Project (NEP) is on track to go live in 2019. With total funding of $550 million now (World Bank, African Development Bank), with something in the range of $80-160 million for SHS, this will provide a massive push to the market. This component was designed by the Solar Nigeria Private Sector Lead (under engagement by the World Bank) and reflects the lessons and continuation from the Solar Nigeria Programme.

The USAID Nigerian Power Sector Programme (NPSP) has established good momentum and is well funded, to provide substantial TA to the market. This includes providing strategy and business design advice to solar providers, and TA to the NEP.

The Lighting Africa – Nigeria Programme (World Bank / IFC) has secured funding to continue for another two years. It will provide support on technical standards and sales promotion.

Several strong SHS providers – with programme support - have progressed well towards establishing the foundations needed to move from entry and pilot phases towards scale.

Lumos (Nigerian SHS PAYG market leader): survived a large product failure / recall during 2018 that risked the company failing. It funded the product recall, underwent substantial internal change to move from a ‘tech start-up’ to a profit-focussed and sustainable enterprise. Investors have reconfirmed support, restructured the business, and changed key leadership roles.

Arnergy (Nigerian SHS PAYG start-up): secured the largest (partly) private investment into a Nigerian PAYG SHS company. An equity round of $ 9 million was closed in early 2019. Investors include Breakthrough Energy Ventures, All On Energy, ElectriFI and Norfund.

M-Kopa (world #1 and pioneer in PAYG SHS): completed their market assessment study, secured board support to progress to pilot. M-Kopa will now pilot in the Shell Foundation supported Energy Company of the Future (ECOF) in Kaduna, while also planning its own direct channels to market.

PAS Solar (UK business group with strong Nigerian links): secured two stages of funding from REPP (a DFID initiative). Initially they secured $2m of debt and then REPP’s first syndicated funding round raising an initial $3 million with potential to go up to $10 million.

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Key achievements:- Outputs exceeded 2018 LF- Disbursed £ 2.0 million of grants to grantees- Investors entered with significant funding into leading grantees- Solar Nigeria Learning is embedded in the design of the [$550 million] Nigerian Electrification

Project. The [$80-160 million] SHS component is on track to commence in 2019


Fenix (a world top 3 in PAYG SHS): completed their market planning and pilot stage. Has commenced early market roll-out.

Zola / Off Grid Electric (a world top 3 in PAYG SHS): has completed market planning, now launching a new SHS product (DC system). Remains committed to launching in Nigeria a new AC controller for solar, diesel, and grid hybrid systems in 2019.

D.light (world #1 in pico solar): has continued to grow sales to remain Nigerian market leader. Expansions to its reach for cash sales and launch of its PAYG SHS are both progressing well (as per grant plans) to drive further expansion. It has continued to receive funding support from its parent company.

Green Light Planet (world #2 in pico solar): has continued rolling out its expansion of cash sales to reach national spread and establishing PAYG SHS in northern states (under grant plans). In 2019, it commenced roll-out of its own cash collection agents to fill gaps in the reach of Mobile Money (MM) business models. This is an important initiative (supported by grant) to test the limitations of MM rhetoric and the potential commercial efficacy of doing more.

3.5 Key activities and achievementsGrants administration: New Awards (i.e. Grant Agreements) of GBP 2.6 million were contracted in FY 2018. Of this, GBP 300k was contracted since the last DFID Annual review in August 2018. One award was GBP 150,000 to All On as one of several contingent grants that had been made available over two years to help bring about what ended up being the $9 million investment into Arnergy. The other was GBP 150,000 to Green Light Planet to help roll-out a unique (in Nigeria) network of their own cash collection agents, to test the viability of expanding the reach of cash handling well beyond the area served by the Mobile Money sector. Grant funds totalling more than GBP 2.0 million have been disbursed to grantees since the last review. This was mostly under Grant Agreements executed prior to the end August 2018, and as grantees achieved Milestones.

Learning from Solar Nigeria was embedded into the NEP, the World Bank’s largest ever tranche of funding for Off Grid Electricity. While the design was created in 2017-18 (by the Solar Nigeria Private Sector Lead under World Bank engagement), during the review period it survived largely intact to go through as the design for the roll-out of the NEP SHS programme.

Foundations for the market to scale consolidated: A group of strong and capable companies providing solar with finance for households (and micro enterprises) is in place. These have been supported by Solar Nigeria from various starting points since 2015 to 2019. During the review period they have each passed vital staging gates in their progress towards scale in the market. These are discussed in the ‘New developments’ section above.

Investors entered the market: The strong solar providers are beginning to secure serious early-scale stage funding. During the review period, several have secured significant finance from various sources. These are a mixture of parent companies (with various sources of capital ranging from fully private to a mix of DFI), DFI and Impact Investors, and some direct pure private investment. These are discussed in the ‘New developments’ section above.

ICF Attribution Method: A new approach to ICF Reporting was developed. This is to build in full attribution required for COP reporting. ICF indicated that the method would be used as an example for other cases where attribution is complex.

3.6 Challenges

All grantees (both the very experienced and the new entrants) have found it more difficult to deliver their forecast outputs anticipated -this includes those that have scaled elsewhere in Africa. While they remain positive, they have tended to reduce early sales forecasts, and accept that the cost to find and serve customers is higher than they experienced in East Africa. This has added a friction to the rate of progress.

Historical macroeconomic challenges have left a lingering impact. The recession of 2015-17 resulted in 18 months of reduced rather than increased market activity. So, the expected growth phase is delayed. In parallel, the release of a large share of the grant budget was also held off until the recession passed. The catalyst of grant in this type of programme typically comes 2-4 years before the capable grantees then begin to deliver substantial scale. This means that the anticipated phase of exponential growth would be delayed until beyond

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the life of the programme. The 60% devaluation of the Naira against the USD, for a population that uses imported goods in daily life, means that the buying power of household budgets has reduced. This has presented significant challenges for solar providers by reducing the ability and willingness to pay.

Current challenges in the market include: general difficulty of doing business in Nigeria is higher than in some other markets; delays and extortion means port clearance of product can take up to 3 months; import duty and VAT add nearly 30% to the cost of goods; SHS technical standards and approval processes locally are cumbersome and not yet formally tied to international standards; Mobile Money for payments is improving but today substantial gaps remain that limit the reach and viability of SHS business models seeking to reach outside the main population centres.

The programme operation faced some lesser challenges: The final year of the grant award process took significantly more resource than had been expected. This reflected more rigorous and deeper evaluation and a higher standard of business plan and capability for the award of grant, and a larger grant budget to award. This effort was worthwhile and has secured a very strong cohort of grantees to underpin the market. However, the consequence was that the programme spent less time engaging widely and deeply across the sector on wider market issues and performance. However, the USAID NPSP with a very large TA budget has moved in to provide robust support to the market.

3.7 RecommendationsAs a market pioneer, SNP has generally achieved the intent (albeit allowing for an 18-month lag reflecting the recession). Key market players have entered and are building their foundations to expand. A public sector champion is in place with political power to act (MD of the REA/ Head of APG in the OVP). A larger follow-on programme (NEP) is approved and funded to implement this year (REA / World Bank). Lessons from SNP have been transferred and are reflected in the NEP. NPSP (USAID) is providing useful TA to the industry. Investors and funds are beginning to mobilise.

Broadly, the recommendation is to consider the transition from SNP’s pioneering role to the next phase of market (supported by others) as consistent with the broad hopes for the intervention and let this play out.

The areas of activity proposed as the focus for the final year would be: Manage the existing portfolio of grantees: This includes monitoring performance, completing final

disbursements of grant as final milestones are met, apply corrective and/or compliance action where this might be warranted, manage the grant budget (and risks) until full disbursement.

Tell the stories: Examine the experience of the programme and grantees. Develop stories of success, impact and lessons. Write and promulgate the stories.

Identify Future Intervention Opportunities: Identify needs and opportunities (to the extent they might exist) for future interventions. These may include remaining gaps remaining in the market for SHS, or new markets or technologies not yet established in Nigeria that could deliver similar benefits in energy access.

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4 SOCIAL WORKSTREAM

4.1 BackgroundThe Solar Nigeria Programme social workstream is the pioneer worsktreamin the ASI SNP portfolio. The objective of the social workstream is to support the use photovoltaics (PV) to provide clean reliable energy in public school and health centres. The availability of constant and reliable energy should ultimately result in improvements in healthand education indices within thebenefitting facilities.The social workstream operates in 3 states namely Lagos, Kaduna and Borno states. A brief background on each of the state projects follows.

Lagos Solar is a joint investment by Lagos State Electricity Board (LSEB) and the UK Department for International Development (DFID), each contributing GBP15m. The procurement was carried out by Crown Agents with TA provided by Solar Nigeria on behalf of DFID. The project supplies off-grid electricity to 175 secondary schools and 11 primary health care centres (PHCs) in rural, riverine, and peri-urban areas of Lagos State. All sites were operational by April 2016, individual systems range between 5KW-25KW, for a total installed capacity of approximately 5MW.

Kaduna Solar Clinics is a joint investment by Kaduna State Government and DFID, the state contributing GBP1.3m and DFID contributing GBP9.5m. The project was implemented by Crown Agents Nigeria Limited with TA from Solar Nigeria on behalf of DFID. The project supplies off-grid electricity to 34 primary health care centres (PHCs) in rural and peri-urban areas of Kaduna State. All sites were operational by February 2017, individual systems range between 5KW-25KW, for a total installed capacity of approximately 1.5MW.

Borno Solar Hospitals is a GBP4.2m DFID intervention to provide off-grid power to three second tier hospitals in Borno State- a conflict zone. This project was a pilot prior to larger scale interventions to address the wide scale damage resulting from the Boko Haram insurgency. It was implemented by Em-One Energy Solutions with TA from Solar Nigeria on behalf of DFID. This project benefitted from the previous lessons learned in Lagos and Kaduna. The project has now been expanded into atleast 8 additional sites in Borno state which are implemented by AECOM.

4.2 LogFrame Progress

Indicator Reference


Planned2018

Actual2018 (Achieved since last Annual Review)

Planned 2019

Actual 2019 (Jan – May)

Remarks


Number of PV systems in public institutions provided with programme support for which there are O&M plans in place

250 216 (216)

250 213 LSEB continues to support O&M arrangements for 213 systems in Lagos solar projectO&M arrangements for Kaduna and Borno solar projects are yet to be implemented. Initial one year O&M arrangement for Borno solar project expired in June 2018.

4.3 Key Achievements

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Key achievements:- Exceeded 2018 LogFrame targets – more people benefiting from programme intervention efforts. - Training provided to strengthen LSEB O&M capabilities


4.4 New DevelopmentsSince mid 2018, ASI SNP’s involvement in the social workstream has tapered off as significant parts of the social workstream are now being implemented by AECOM. However, ASI SNP has continued to provide monitoring and evaluation support to its installed sites.These monitoring visits serve as an opportunity to interact with the state officials and beneficiaries of the installations.

Regarding O&M support, this has been largely provided on an ad-hoc becausei) funding for full O&M support has been limited and more importantly, the 2018-2019 election cycle meant that the government priorities were shifted towards campaigning- as such key government officials in Kaduna and Borno state were unavailable since the last Annual Review.Assessing the situation, the programme determined that it was better use of resources to delay certain O&M activities and conversations until the elections were concluded and new government appointments had been made. Activities to strengthen the O&M regime will pick up later this year once key government appointments have been made. Activity is likely to be limited technical assistance due to budgetary constraints.

In Lagos, the LSEB took full responsibility for all DFID supported sites since 2016 and has been carrying out routine O&M since then. The LSEB has continued to serve as a model state for how supportive government regimes can enhance the delivery of development projects. As a result of their successes in maintaining an O&M regime, DFID, with TA from ASI SNP, has funded the supply of spare parts so that faulty systems that require more complicated maintenance can be brought back online. In addition, the technicians at the LSEB also received a 3-day training by Schneider Electric. The training helped to expand their preventative maintenance capabilities as well as their ability to install spare parts cost-effectively without creating a strain on their existing budget. Feedback from the LSEB indicates that training provided was very useful. Finally, and most demonstrative of sustainability, the LSEB has reported that they have secured commitment from the newly elected state government to prioritise O&M activities. They have received approval for their O&M activities to continue with an allocated budget.

Since reporting last year that the Kaduna State Government has procured a service provider for conducting O&M in the state, the programme discovered that the government has not released funding for the company to begin their operations. ASI SNP has made attempts to discuss with the relevant parties but no further progress has been made in compelling the government to meet the terms of their MoU and release funding for the maintenance of the equipment. However, post-election, the former Senior Special Assistant to the Governor on Energy has been made the Managing Director of the Kaduna State Power Supply Company (KAPSCO) which now has the mandate to ensure that the existing systems are properly maintained. Preliminary conversations with her have indicated that one of the priorities of KAPSCO will be to ensure that existing and new systems are maintained.

Following the end of EMOne’s post-installation O&M contract mid last year, O&M activities in Borno state have been stalled. The strategy identified jointly by DFID and ASI SNP during the previous DFID Annual Review was for ASI SNP to provide TA in order to build the capacity of the energy focal persons in Borno states to manage routine maintenance of the systems. SNP proceeded to identify a qualified solar engineer to provide continuous support within the state for a minimum of 6 months and presented the candidate to DFID and officials in Borno state. However, the individual identified by SNP was rejected by the Borno state government with a promise by the officials to identify a more suitable local candidate to provide O&M support. Other developments in Borno state include the recent election of the previous RRR commissioner as the Governor of the state. Given the close interactions SNP has previously with the newly elected governor, the programme will attempt to make in road in order to progress O&M conversations.

4.5 Key activities and achievementsInstalled capacity Over the last year Solar Nigeria has continued to monitor the functionality and impact of solar at all sites. Currently sites are experiencing a number of benefits including reliable power for laboratory and educational equipment, prolonged hours of study and clinic opening hours, and the ability to provide cold chain storage (in clinics). O&M plans

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Reports received from personnel at the sites indicate that the LSEB is responsive to meeting the O&M needs of the sites. LSEB have reported that they have received approval of the maintenance related fees and expenses.

LSEB has received spare parts needed to repair / replace faulty inverters, load limiters which is expected to increase the proportion of functional systems.

LSEB has had their preventative maintenance capabilities expanded through a training provided by Schneider Electric. This will go a long way to boost staff ability and morale.

In Lagos, new partnerships were formed partly as a result of Solar Nigeria’s interventions. The Lagos Business School provided internet facilities to 2 schools in Ibeju Lekki following the availability of reliable solar power within these schools. Similarly, MTN provided Smart boards to 89 out of 175 schools that had received Solar interventions. These immediate outcomes further demonstrate the relevance of the project’s intervention efforts in improving educational outcomes for benefiting institutions.

As part of the successful delivery of the DFID funded Kaduna solar project, the Kaduna State government (KSG) has embarked on a second phase of the project to deliver a total of 221 solar systems in newly selected PHCs in addition to the 34 solar systems delivered under phase 1. At the time of this review, KSG has identified a Private Project Partner to deliver the phase 2 of the Kaduna solar project. In addition, KSG has obtained a loan facility from India EXIM bank for this phase.

4.6 ChallengesThis section describes the key challenges faced across all social workstream projects in the 3 states:

Damage of structural equipment in riverine areas: LSEB has reported that the saline environment has affected some structures causing metal eroding of structures supporting the solar panel. Therefore, solar panels in some sites have had to be removed from the mounting structures to ensure their integrity. There is limited funding to ensure that these structures are replaced with the corrosion resistant material.

Security and vandalism: There are still reports of isolated incidents of vandalism and theft at some locations. LSEB yet to find permanent solution to this.

Lack of progress on O&M plans:The primary challenge to all the social component projects is sustainability. Without robust arrangements for O&M (preventative and remedial), it is inevitable that system availability will fall.This co-ordination will leverage the impact of the project – its absence could frustrate the comprehensive outcome sought by DFID.

Lack of local level ownership: Local government level involvement at the launch of the projects would have helped to foster ownership at the grassroots level.

4.7 Recommendations and next stepsFor future social projects, DFID should consider the following recommendations:

High level meeting with State government: DFID/SNP to have high-level meetings with key players within Kaduna and Borno states to ensure that O&M arrangements are being made.

Local community engagement to build ownership: Consider the involvement of local community leaders in the conversations on O&M. This will help build ownership of systems located within their territories. This local ownership could serve as a method to decentralize the routine maintenance of the systems.

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5 GOVERNMENT WORKSTREAM UPDATE

5.1 BackgroundUnder the governmentworkstream, DFID, through SNP committed to fund one embedded advisor to support the delivery of the Vice President’s Advisory Power Team’sand the Head of the Rural Electrification Agency (REA) onon-gridand off-grid work.The embedded advisor role involved the oversight and management of a range of on- and off- grid initiatives as directed by the Head of Power at the APT and the Vice President. The advisor acted as the key point person in the APT for on- and off- grid solar projects, supporting design, establishment and implementation. The advisor supported project implementers and works with advocates and other agencies to overcome barriers in order to facilitate the project implementation. For example, the SNP advisorworked with relevant agencies to facilitate various projects’ access to licenses or duty waivers. The Rural Electrification Agency (REA) has been progressing on the implementation of its Off-Grid Electrification Strategy, and has made progress on the Nigerian mobile money market which will support solar companies in scaling up activities.


Indicator Reference

Indicator Description Planned2018

Actual2018 (Achieved since last Annual Review)

Planned 2019

Actual 2019 (Jan – Jun)

Remarks


Policy and regulatory changes that would facilitate financing in the solar market and improvement in Solar energy provision are actioned as per the Energy Compact (% of total recommendations)

40% 69% (69%)

60% 69% 18 out of 26 action points where progress has been made or proposed action have been completed.


5.4 New developments and achievementsIn 2019, the World Bank and REA launched the Nigeria Electrification project which aims to accelerate electricity access in rural areas through mini grids and stand-alone off-grid solutions. NEP aims to be the largest off-grid electrification project across 250 communities in 4 states. The NEP has 4 components which are: Solar Hybrid Mini Grids, Standalone Solar Systems (SHS), Energizing Education Programme and a Technical Assistance component.

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Key achievements:As a result of the pioneering work conducted by SNP since 2015 two past solar Nigeria personnel are now on the REA/World Bank Project:- Past Solar Nigeria Grants Administrator has been appointed as the Solar Home System (SHS)

Component Lead, Nigerian Electrification Project- Past Solar Nigeria Government workstream lead appointed as the Solar Mini Grids Component Lead for

Nigeria Electrification Project at World Bank Group


As discussed in the Consumer section, a large part of the NEP SHS grant design was modelled after SNP and the former SNP grants administrator has moved over to the REA to lead that component. Similarly, the previous Advisor under the Government workstream transitioned fully into a role as the Solar Mini Grids Component Lead for NEP in April 2019. These transitions are indicative of the sustainability of SNP’s pioneering work in Nigeria’s energy landscape and will ensure that the lessons learned on SNP are transferred and used to shape the outcomes of new projects.

Given that the REA and new upcoming projects are well resourced, they are best placed to work with the government on removing further policy and regulatory barriers. SNP will no longer report on this workstream in future annual reviews as funding and resource for it have now ended.

5.5 Key Activities Over the last year the embedded consultant supported with various on- and off-grid projects in collaboration with various partners including the World Bank, African Development Bank and Nigeria Climate Innovation Center. Work to support the implementation of Jigawa State aaaO&M plans

• Held conference call with WB & AfDB to discuss support for NEP project

• Held meeting with NCIC advisory board members on progress of outstanding issues

• Developed Bi-weekly report for mini grid component of the NEP

• Reviewed letters & Memos for MD REA

• Reviewed Governance document for NCIC

• Reviewed technical and financial submissions for feasibility studies for Jigawa project

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6 RESULTS MONITORING

Monitoring programme progress and achievements of SN’s interventions across all workstreams is a key strategic function towards programme reporting, informing future programme iterations and most importantly ensuring the sustainability of SN’s interventions. The SNP’s approach to results monitoring (RM) is based on the premise that Solar Nigeria is a flexible and adaptable programme that focuses its activities on responding to evolving key stakeholder needs, changes to external factors and monitoring field findings.

Specifically, the M&E team collects and reports on primary operational and selected results (including impact) data on a quarterly to bi-annual basis. Rigorous analyses are conducted on data collected for arriving at useful management information. The next section details key achievements over the past year.

6.1 Key activities and achievementsGeneral

Mainstreamed M&E activities across all workstreams for enhanced results/technical monitoring and reporting also taking into account lessons learned for improved decision making;

UpdatedSNPLogFrame results:Emerging evidence of improvements in public health and educational institutions as well as improvements in Consumer and Commercial workstream grantees benefiting from SN’s interventions are now available for the period January to May 2019 (March for private sector beneficiaries). Refer to Annex1 for the updated programme LogFrame.

Improved ICF Reporting: Revision of SN’s Private sector methodology for attribution of results for ICF reporting, as requested by DFID/ICF team. This new methodology clearly articulates attribution rates based on grantee attribution categories and simple rules as agreed with ICF and is to be adopted in similar complex cases.

Social Results Monitoring: Bi-annual surveys were conducted for all three states – Lagos, Borno and

Kaduna. Lagos state was completed by a third-party research firm (Fusion Consulting), while Kaduna and Borno was conducted in-house by SN’s M&E team. Two sites in Borno –Dikwa and Biu were completed by phone calls due to security challenges within the region. However, a physical site visit was made to Benishiek. The surveys were held in January/February and June/July for all three states – Lagos (175 schools and 11 primary health centres (PHCs)), Kaduna (34 PHCs) and Borno (3 General Hospitals) - to collect operational and performance data during the reporting periods. Specifically, the field survey is structured to collect data on current power sources, programme beneficiaries, quality of service delivery and changes (if any) in infrastructure at the public institutions. Anecdotal evidence on outcome of SN’s intervention is also collected.

Technical Monitoring: as part of SN’s obligations and interest to ensure optimal functioning of installed systems, bi-annual technical monitoring activities were conducted alongside the results monitoring field surveys in solar intervention sites across the 3 states. Specifically, all (250) installed solar systems were checked for their level of functionality to ensure systems were optimally harvesting and supplying electrical power to the benefiting institutions. This informs key LogFrame indicators as well.

After extensive consultations with LSEB and the Lagos State Ministry of Education, student enrolment data for the 2018/2019 session was made available to SNPby the Ministry of Education. This data will be utilised for data triangulation and analysis.

Private SectorManagement interviews in person and by telephone: One or more in depth discussions with senior management of each of the larger grantees and some discussions was undertaken by SNPconsumer lead. Exploring background and issues behind past performance, priorities for the next period, issues and opportunities for further support or refinement in grant plans. During the review period interactions were focussed on the grantees with the highest output potential and largest grant awards. The interviews include not only the grantees themselves, but often relevant stakeholders - such as investors. This pool of interviewee organisations – and their senior personnel - includes more people located outside of Nigeria than inside, and often across time-zones. The interactions therefore rest heavily upon email and tele-conferencing.

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Commercial

Grantee reports: Each quarter, the Grants Administrator receives and evaluates detailed reports from each grantee. These include progress against Milestones contracted for the release of grant funds (e.g. number or capacity of solar projects in the project pipeline, with varying types or depth of supporting evidence such as signed PPAs); contracted Action Plans (e.g. number of new sales-people recruited), and planned expenditure of grant funds (including documentary evidence of expenditure and a rolling budget). A narrative report is also included for all recent grantees. The Grants Administrator compiles overview reports and recommendations (Commercial Tracker) and sends to the Commercial Workstream Lead. The Lead then reviews a selection of the grantee reports (the largest grants, biggest performers, and those not on track). This process includes numerous follow-up emails and conversations with grantees to ensure complete and reliable reporting, and to consider remedial actions where relevant. From this process, achievements against set targets were collated and reported in the LF for January to March for the consumer workstream, and in this Annual Review report for the full review period, inclusive from the September 2018 quarter.

Consumer

Grantee reports: Each quarter, the Grants Administrator receives and evaluates detailed reports from each grantee. These include progress against milestones contracted for the release of grant funds (e.g. number of units sold, with varying types or depth of supporting evidence – usually lists of the end customers or dealers who purchased the equipment), contracted Action Plans (e.g. number of new sales-people recruited), and planned expenditure of grant funds (including documentary evidence of expenditure and a rolling budget). A narrative report is also included for all recent grantees. The Grants Administrator compiles overview of reports and recommendations in the Grant Tracker and Data Tracker reports and sends to the Consumer Workstream Lead. The Lead then reviews a selection of the grantee reports (the largest grants, biggest performers, and those not on track). This process includes numerous follow-up emails and conversations with grantees to ensure complete and reliable.

6.2 ChallengesSocial

M&E budgetrestrictions continue to impact RM resourcing and implementation, with a number of key monitoring activities delayed or planned for later than originally scheduled in the M & E frameworks. For the social workstream this impacts data verification, especially in Borno State, where security remains a challenge.

Lack of O&M maintenance affecting target achievements: There is an increasing number of systems becoming faulty in Kaduna (11 in the last monitoring visit) where the O&M contract is yet to be implemented by the State, data capturing for affected sites become impossible. Systems installed in affected sites according to LF indicator definition are classified as non-functional if down for over a month, during the current review periods (January to May, 2019). Hence, beneficiaries from these sites were not included in the computation for total programme beneficiaries. Likewise, 33 systems were reported as non-functional for Lagos (out of a total of 213) and the solar system for the Dikwa General Hospital (in Borno) was reported as partially functional with main hospital buildings not being connected to the solar power. For the SNP intervention to be sustainable, O&M arrangements need to be strengthened in Kaduna and Borno. O&M arrangements for Lagos state have been progressive with LSEB working concurrently to ensure installed solar systems are working and well maintained.

Security: The volatile situation in the north east has made it difficult to successfully visit all three sites of the BornoPhase I project. Interviews with hospital key contacts were conducted via phone for Dikwa and Biu. For Benishiek a physical site visit was conducted given the relatively safe security situation. The implication of this is that the quality of data collected for these sites cannot be physically verified.

Lengthy protocol processes: the process of obtaining prior approval from the state MoE (Ministry of Education) and LSPHCB for field site visits and access to enrolment data can be quite lengthy, resulting in delays with other programme activities.

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Errors in individual data items: with data collection in most sites in Lagos contracted out to third party consultants, there may be potential errors in data collected. However, this has been largely overcome by data validation spot checks conducted by members of the SNPM&E team.

Commercial Grantee reporting, Rubitec: Compliance and reporting challenges with Rubitec noted in the previous

annual Review have been resolved.Rubitec had lost control and access to a smaller project whose small size was immaterial to overall results.It was agreed mutually to treat that site as abandoned for future reporting. O&M payments due to Rubitec were reduced in proportion to reflect the remaining and larger project that is within effective control of Rubitec. Rubitec is now providing required reporting each quarter.

6.3 Recommendations Budget and security:With the limited M&E budget it is important to recruit an indigenous M&E

company in the north east to assist with data collection at the 3 hospitals at a much more affordable cost. Quality assurance will be provided by SN’s M&E team.

Conflict Monitoring: A periodic assessment and reporting of the current security situation using indicators that can effectively track rapid changes that could impact overall achievements of program targets will be helpful in improving results-based monitoring for the programme in the north east.

Fragility Measures: Periodic (bi-annual) public opinion surveys can be used to sample beneficiaries’ utilization and appreciation of facilities powered by the solar installations. Though results from this survey may be prone to subjective opinions, it will help SNP track trends of perceived benefits over time.

O&M/Remote Monitoring in Kaduna State: M&E team to support the technical team to encourage KSG to start implementation of O&M activities. Once the O&M contractor starts implementation, remote monitoring should be installed to allow effective monitoring of installed systems at the 34 sites.

Data Quality: For subsequent monitoring continued collaborations with the Lagos State MoE through LSEB should be facilitated to ensure accessibility of current enrolment data for effective data triangulation.

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DFID Solar Nigeria AR Aug 2019 REPORT

7 VALUE FOR MONEY

This sectionlays out the Value for Money (VfM) approach and results achieved by SNP from inception to date with specific emphasis on the current period - September 2018 to May 2018. Ensuring adequate VfM practices and measures across all programme workstreams and throughout the project cycle is pivotal towards achieving the overall programme goal of improving access to clean energy for poor communities while developing the solar market in Nigeria.

The VfM approach adopted by Solar Nigeria is informed by DFID’s current guidance, which lays emphasis on creating the most value at each stage of the results chain and “maximising every pound spent to improve poor people’s lives”. This is particularly important in infrastructure projects where evidence suggests that equity needs purposeful and careful consideration and at times it demands higher costs and investment than a programme that does not address equity effectively.

Overall, careful judgement is required when considering whether VfM has been satisfactorily achieved or not. It not only measures the cost of goods and services, but also takes account of the mix of quality, cost, and resource use, fitness for purpose, timeliness, and convenience to judge whether or not, together, they constitute good value. A crucial VfM factor, particularly with respect to solar installations, is sustainability through long-term effective operation and maintenance.

Moreover, some aspects of the programme can be assessed year by year, or on a cumulative basis – and this has been indicated - but in the case of some work areas, for example on the consumer and commercial workstreams, VfM can only be understood properly in terms of the whole project lifecycle, rather than a yearly snapshot.

This section is structured as follows; firstly, it lays out the main VFM achievements for SNP, these achievements have been presented against the 4E’s – Economy, Efficiency, Effectiveness and Equity. Secondly it details overall VfM results by each workstream from inception to date.

7.1 EconomySNPhas attempted to demonstrate consistent economical outcomes to DFID from inception to date through the following measures:

Keeping management and overhead costs low from inception to date. Utilizing a small but highly expert core team working across multiple workstreams to keep costs low and

minimize losses through the learning curve. Recruiting specialized consultants only when strictly needed in order required to minimize costs, whilst

maintaining quality. Cost sharing across all ASI Nigeria Programmes. Most SNP overhead costs are shared with other ASI

programmes or corporate offices located in Nigeria so that overhead costs are minimized. For example, the cost of Security Manager role split with MAFITA, another DFID funded project.

Utilization of PMU across all workstreams. Since the contracting of the programme team occurred in late 2017, the PMU has taken on several non-traditional PMU responsibilities. For example, the Project Director serves as the Team Lead and guides the overall technical direction of the programme. The Programme Manager doubles as the Grants Administrator and the Finance Manager supports M&E functions on the team.

7.2 Efficiency

SNPhas been able to demonstrate efficiency by combining flexible programme delivery with established systems and processes that have resulted in effective team mobilisation, financial effectiveness, and timely and quality delivery of outputs. Instances where these have occurred are listed below.

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Delivery of the programme High speed of delivery and impact of the programme across the different workstreams enabled through the

right selection of partners and recipients of service; Communication and collaboration with other donors/organisations (e.g. the EU, USAID, Power4All and

GIZ) enabled SNPleverage funding and expertise; Early commercial and consumer pilots enabled SNP to gain fast traction, test assumptions, and build

learning for scaling up solar interventions in the private sector. SNP results have been used as inputs for the Energy Compact developed by UK government and the FGN.

Likewise, for the Consumer workstream and Commercial pilot, ensuring effective due diligence is undertaken by adopting best practices in grantee selection. This also helps maximize value for money while not compromising quality.

Monitoring

Robust M&E frameworks are in place that allow to the programme track progress and performance of each workstreams and outcome/output.;

High technology remote monitoring systems installed at each PV solar site in Lagos schools/clinics providing load data and fault monitoring to aid O&M and lower the on-going costs of monitoring;

Rigorous tracking of grantee performance, where each grantee performance is assessed against a range of indicators through quarterly monitoring reports combined with face-to-face meetings with grantees.

7.3 Equity considerationsAlthough Solar Nigeria is classified as a climate change programme, results from the programme are indeed benefiting vulnerable groups in Nigeria. Solar Nigeria has a strong geographic focus on the north of the country, where economic development, poverty, education and health indices are worse.

Social Workstream: Improved the provision of health services in facilities located in fragile States (Borno, Kaduna) or in

peri-urban areas of Lagos where beneficiaries are economically disadvantaged populations that cannot afford private health or educational services. Access to clean, reliable and affordable energy enables these institutions improve their service delivery while realising economic savings and improving health outcomes for the beneficiaries.

Strong focus in Fragile and Conflict Affected States (FCAS) such as Borno State.Dikwa, Biu and Benishiek beneficiary hospitals are located in conflict zones with large numbers of Internally Displaced Populations (IDPs). These are challenging environments with insurgents still present and with unstable security situations. With the provision of solar power, these IDPs and vulnerable population have access to improved health services.

Application of lessons learned from previous programming: Lessons learned from the Lagos solar project helped to improve efficiency, effectiveness and sustainability in Kaduna and Borno including the design and delivery of the PV systems.

Consumer Workstream: Enhanced access to modern energy via small solar has an inherent bias towards the poorer population as

they tend to pay more per unit of energy andexpend a greater portion of their income on energy than do more affluent households. Solar reduces the unit cost of energy.

Enhanced access to modern energy via small solar has an inherent bias and towards females. Women traditionally spend more time occupied with household duties during hours of darkness such as food preparation, and so gain greater benefit from modern lighting. They are also more isolated and so benefit from greater access to radio and TV bringing information about health care and life opportunities.

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Commercial Workstream: Job creation and income generation opportunities directly associated through increasing the efficiency

and productivity of micro, small and medium enterprises (MSMEs). Therefore, there is a direct effect on poverty reduction through lowering the cost of business, and the associated income and employment generation realised. This workstream is also supportive of pro-poor results through the Social workstream in the long-run.

7.4 Effectiveness

Below are VfM good practices adopted by the SNP: Adaptive programme: SNP has demonstrated effectiveness in its operating mode and its associated

processes which allows the programme cope with unexpected developments during implementation that can result in a change in the direction, and/or in the redesign of selected SNP activities.For instance, updating approaches in Kaduna/Borno based on Lagos successes and; managing FOREX and the economic crisis in the consumer and commercial workstreams.

Incipient demonstration effects: SNPcommercial focus on Kano and Kaduna has driven significant interest in commercial solar in Northern Nigeria.

Leveraging:The Consumer Pilot in 2016 leveraged significant private investment of £13.9 million. This represents a leverage of 7 times against grants of £1.9 million disbursed in the 13 months to end of 2016. The commercial pilot leveraged £0.9million in private sector investments in 2016. Similarly, during the current review period the Consumer and Commercial workstream leveraged £13.49 million and £5.2million respectively- representing a leverage of 6times the £1.8milion grants disbursed under the Consumer workstream and a leverage of 3 times the £1.3million of grants disbursed under the Commercial workstream within the period.On the social workstream, the programme was able to leverage additional donor fundingthrough the award of €30million EU funding to DFID in 2017 and a further €15 million secured for implementation of social solar in the North East and North West.

Sustainability:O&M is the key to delivering real VfM across the social portfolio, ensuring the project realises the value of solar over time and supports the overall Solar Nigeria programme as evidence of a successful solar project. For instance, for the Lagos solar project, Solar Nigeria has collaborated with LSEB to provide routine O&M practices for installed systems.

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7.5 SNP VfMquantitativeresults

Stage of VFM analysis

VfM Indicator Details Results End 2015

Results End 2016

Results End 2017

Results End 2018

Results January to June

2019

Comments

Economy 1.Consultant Fees

Average unit cost of consultant (£) – National and International

537 513 504 511 617

Increase in average unit cost of consultants (International and National) due to a reduction in the number of consultants from 22 last year to 14 this year.Average unit cost of

consultant (£) –National 416 410 350 364344

Average unit cost of consultant (£) – International

774 778 713 825902

2. PMU costs as % of total program spent

PMU costs defined as: administration and overhead (i.e. M&E, senior management, finance, admin. etc.)

2% 4% 8% 3% 42%

Actual spend in £s for PMU has reduced from previous years. However, PMU spend as a proportion of total programme spend has increased. The major reason for this is the drastic reduction in grant expenditure within the review period. Of less impact is reduction in the size of the technical team vis a vis the PMU.

4. Mix of international TA to national TA

% of National consultants / Total Consultants

61% 66% 58% 68% 79%There are more national associates engaged on the programme as compared to international associates

International consultants – Average days billed per year

46 88 51 43 30Changes are due to a reduction in the overall SNP team size from 22 to 14.

National consultants – Average days billed per year

45 71 64 87 39

Efficiency 5. Energy Savings (£ million)

Cost per MWh of PV system installed and operating effectively, compared to cost for the same MWh produced by petrol, diesel and kerosene.

1.02 8.60 13.41 47.11 58.84Energy Savings on fossil fuel expenditure at sites has steadily increased over time demonstrating the direct impact of the programme.

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6a. Cost per MWinstalled -Social -

£ value spend divided by total Social Lagos MW installed - cumulative

£ 6.86million /MW

Cost per MW is higher than on other components due to the purchase of batteries and high specification of solar panels to provide 24/7 power supply to improve the health and education outcomes. There is also increased spend on logistics, TA and management on the social component due to the engagement with MDAs and remote nature of the locations.

The cost per MW is useful for DFID/SNP to compare the relative costs of installation in different contexts, but this does not capture the long-term VFM gained through the effective O&M and system longevity.

£ value spend divided by total Social Kaduna MW installed - cumulative £ 6.63million /MW£ value spend divided by total Social BornoMW installed - cumulative

£ 12.50million /MW

6b. Cost per MW installed - Commercial

Cost per MW installed (£) - (MW installed in the work stream divided by work stream £ value spend)

£ 3.25million /MW

With the withdrawal of the IFC component and the new C&I Market development component, the capacity installed has increased with a reduction in the initial capital cost.

7. % variance in Budget vs. Expenditure

Link Expenditure to Output performance 0% 2% 1% 1% 1%

SNP has consistently delivered the project within planned budget.

Effectiveness 8. Investment mobilized (£ million)

Across all workstreams

£17.67 £14.82 £52.01 £26.68 £3.82

At end 2019Cumulative:Commercial: 6.25Social: 53.47Consumer: 51.48

9. Finance Leverage(£ million)

Total public and private investment mobilized across work streams/ value of £ spend by SNP across all work streams £0.90 £0.83 £7.34 £6.58 £12.87

The public/private finance leveraged through SNP activities over the last two years has been quite significant when compared to SN’s spend, with social and consumer workstream leveraging additional funding proving Solar Nigeria’s efficiency quite effective - through the award of 30million and 15million Euro EU funding to DFID in 2017under the Social workstream and 23.7million GBP by the Consumer workstream.

10. Cost per TCO2e avoided

ConsumerTotal £ value grant spend

£77.51 £16.17 £43.76 £17.16 £13.73 Programme forecast is £ 2.0 per tCO2e cumulative. However, this is forecast to be reached only at the end of the programme. Grant funds disbursed have

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divided by tC02 avoided in the consumer work stream – discreet

not yet all had time to catalyse the market, installed systems have operated for only a short period, and the forecast phase of rapid market scaling has not yet been reached.

Cost per user of gaining access to cleaner energy

Social LagosTotal number of beneficiaries divided by the total £ value spend – cumulative since inception

£ 754.29 £ 97.93 £ 42.11 £ 27.84 £23.63

With increasing trends in the total number of programme beneficiaries, the cost per user continues to decline.

Social KadunaTotal number of beneficiaries divided by the total £ value spend – cumulative since inception

N/A N/A £53.42 £29.30 £23.79

Social BornoTotal number of beneficiaries divided by the total £ value spend – cumulative since inception

N/A N/A £53.53 £21.78 £18.95

Consumer Total number of beneficiaries divided by the total £ value spend – cumulative since inception.

2.81 2.39 4.23 3.84 3.94

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8 PROGRAMME MANAGEMENT UPDATES

This section details updates in programme management including staff changes, operational developments and future staff needs.

8.1 StaffingThe major staff changes in the last twelve months are as follows:

1. Ifunanya Nwandu left the Programme in February 2019 and the Grant administrator functions were taken over by Bodunde Onemola, Programme Manager.

8.2 Solar Nigeria Organisation Chart

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8.3 Programme managementA number of changes have been made to programme processes and reporting over the last year:

Team Meetings/ Communication: Given the small team size and different locations of team members, team updates have occurred largely via email communication;

Grantee site visits: The team has instituted periodic documented site visits to grantees in addition to the routine check-in call that previously occurred;

Audit Preparation: SNP PMU has committed to reducing its turn-around-time for audit preparation following recommendations from auditors; and

ICF Reporting: Revised methodology used to report ICF figures for private sector results.

8.4 CommunicationsOver the last year the SNPteam have carried out a number of communications activities, these include:

Press The programme has received positive local and international press coverage over the last quarter.

Activities for the year ahead include: Completing lessons learned documents Developing learning documents assessing gaps still present in the solar market. The specific areas of

focus are:o Pioneer Gap grant for big investorso Pilot Grant to help a wider pool of smaller and less capable solar players get up to Impact

Investor stage. o Next stage of investment: Supporting larger PAYG SHS and C&I companies access

massive sources of capital to fund their large portfolios of leased assets.

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background - aidstream.org€¦ · web viewthis was impacted by the economic downturn of 2016-17...

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