Project Completion Report for PV Project



5665470-23495 00 END OF PROJECT REPORT 5875655127000 Grid-Connected Rooftop Photovoltaic Systems Project (PV Project)UNDAF Outcome(s):N/AExpected CP Outcome(s):CP Outcome Indicator:UN Country Programme 2012-2016 – Country Programme Outcome #2: By 2016, the governance systems, use of technologies and practices and financing mechanisms that promote environmental, energy and climate-change adaptation have been mainstreamed into national development plans.Executing Agency: Seychelles Energy Commission (SEC)Implementing partners: United Nations Development ProgrammeOther Partners: Ministry of Environment, Energy & Climate Change (MEECC), Public Utilities Company (PUC), Development Bank Seychelles (DBS), Ministry of Finance Trace and Bleu Economy (MFTBE), Seychelles Island Foundation (SIF), Sustainability for Seychelles (S4S), Ministry of Education – Eco-School program 13335153670Project SummaryThe Seychelles is approximately 98% dependent on imported oil to meet its energy needs, including electricity production. The objective of the proposed project is to increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-scale producers who are already connected to the national electricity grid. The project will revise the legal, regulatory and policy framework to better support the adoption of renewable energy technologies, and grid-connected PV systems in particular; design and implement financial mechanisms that will make the purchase and installation of solar PV systems more attractive to the private sector; establish the first market supply chain for solar PV systems in the country; provide training to establish local capacity for the installation and maintenance of PV systems; and demonstrate for the first time in the Seychelles the viability and practicality of grid-connected PV systems through demonstration PV systems. Together, these actions are designed to play a critical role in “jump-starting” the adoption of solar PV technology in the Seychelles, and in setting the stage for broad-scale replication by reducing the costs of PV technology through a market-based approach that will establish financial incentive mechanisms for PV systems and reduce transaction costs (by creating a reliable supply chain and establishing local capacity for installation and maintenance). In this way, the project is designed to transform an energy sector that today is almost 100% dependent on imported fossil fuels into one where solar PV and other RETs provide a significant percentage of national energy production going forward. .00Project SummaryThe Seychelles is approximately 98% dependent on imported oil to meet its energy needs, including electricity production. The objective of the proposed project is to increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-scale producers who are already connected to the national electricity grid. The project will revise the legal, regulatory and policy framework to better support the adoption of renewable energy technologies, and grid-connected PV systems in particular; design and implement financial mechanisms that will make the purchase and installation of solar PV systems more attractive to the private sector; establish the first market supply chain for solar PV systems in the country; provide training to establish local capacity for the installation and maintenance of PV systems; and demonstrate for the first time in the Seychelles the viability and practicality of grid-connected PV systems through demonstration PV systems. Together, these actions are designed to play a critical role in “jump-starting” the adoption of solar PV technology in the Seychelles, and in setting the stage for broad-scale replication by reducing the costs of PV technology through a market-based approach that will establish financial incentive mechanisms for PV systems and reduce transaction costs (by creating a reliable supply chain and establishing local capacity for installation and maintenance). In this way, the project is designed to transform an energy sector that today is almost 100% dependent on imported fossil fuels into one where solar PV and other RETs provide a significant percentage of national energy production going forward. .3394710116205Total project funds for the USD xxwhole period:Allocated GEF resources:USD 1,160,000Co-finance resources:GovernmentUSD xxOthers: NGOsUSD xxOthers: private sectorUSD xx Total Co-Finance USD xxx00Total project funds for the USD xxwhole period:Allocated GEF resources:USD 1,160,000Co-finance resources:GovernmentUSD xxOthers: NGOsUSD xxOthers: private sectorUSD xx Total Co-Finance USD xxx13335128905Programme Period:2012-2016Programme Component:xxxIntervention Title:Grid-Connected Rooftop Photovoltaic Systems Project UNDP Project ID:4331Duration:4 Years (+6 month no-cost extension)00Programme Period:2012-2016Programme Component:xxxIntervention Title:Grid-Connected Rooftop Photovoltaic Systems Project UNDP Project ID:4331Duration:4 Years (+6 month no-cost extension)7048507448550Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________00Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________7054857451090Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________00Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________7054857451090Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________00Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________7054857451090Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________00Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________7054857451090Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________00Programme Period:2007-2010Programme Component: Energy and Environment for Sustainable DevelopmentIntervention Title:Mainstreaming Prevention and Control Measures for Invasive alien Species into Trade, Transport and Travel across the Production Landscape (Biosecurity Project)Project ID:53109Duration:5 Years (No cost extension for further 16 months)Total budget:$2,000,000______________Report submitted by: ----------------------------------------------------------------------------------UNDP focal Point: ---------------------------------------------------------------------------------------TABLE OF CONTENTS TOC \o "1-3" \h \z \u ACRONYMS PAGEREF _Toc439319017 \h 3EXECUTIVE SUMMARY PAGEREF _Toc439319018 \h 4I. CONTEXT PAGEREF _Toc439319019 \h 5II. PROJECT RESULTS SUMMARY PAGEREF _Toc439319020 \h 6III. PERFORMANCE REVIEW PAGEREF _Toc439319021 \h 10III.1 Performance against indicators PAGEREF _Toc439319022 \h 10III.2 Progress review PAGEREF _Toc439319023 \h 12III.2.1 Overall progress PAGEREF _Toc439319024 \h 12III.2.2 Gender PAGEREF _Toc439319025 \h 13III.2.3 Human rights PAGEREF _Toc439319026 \h 13III.2.4 Contributions to direct and indirect beneficiaries PAGEREF _Toc439319027 \h 13III.2.5 Communications and publicity PAGEREF _Toc439319028 \h 13IV. IMPLEMENTATION STRATEGY REVIEW PAGEREF _Toc439319029 \h 14IV.1 Sustainability PAGEREF _Toc439319030 \h 14IV.2 Participatory/consultative processes PAGEREF _Toc439319031 \h 14IV.3 Quality of partnerships PAGEREF _Toc439319032 \h 14IV.4 Timely delivery of outputs PAGEREF _Toc439319033 \h 14V. IMPLEMENTATION ISSUES (Risks Log) PAGEREF _Toc439319034 \h 16VI. LESSONS LEARNED PAGEREF _Toc439319035 \h 17VII. FINANCIAL STATUS AND UTILIZATION PAGEREF _Toc439319036 \h 18VII.1 Financial summary PAGEREF _Toc439319037 \h 18VII.2 Financial overview PAGEREF _Toc439319038 \h 18VII.3 Financial utilization report PAGEREF _Toc439319039 \h 19ANNEXES PAGEREF _Toc439319040 \h 20A1. LOGICAL FRAMEWORK PAGEREF _Toc439319041 \h 20ACRONYMSCSOCivil Society organizationCPCountry ProgrammeDBSDevelopment Bank of SeychellesEEZExclusive Economic ZoneFSCFinancial ScorecardGISGeographical Information SystemGEFGlobal Environment FacilityGOSGovernment of SeychellesIOTIndian Ocean TunaMETTManagement Effectiveness Tracking ToolMOUMemorandum of UnderstandingMTEMid-term evaluationMEECCMinistry of Environment, Energy and Climate ChangeMFBEMinistry of Finance, Trade and Blue EconomyM&EMonitoring and evaluationNMSNational Meteorological ServicesNGONon-Governmental OrganisationPPPPrivate-public PartnershipPCUProgramme Coordination UnitProDocProject DocumentPSCProject Steering CommitteePUCPublic Utilities CorporationRTARegional Technical Advisor (UNDP-GEF)SITSeychelles Institute of TechnologySBSSeychelles Bureau of StandardsSECSeychelles Energy CommissionSIFSeychelles Islands FoundationSIDSSmall Island Developing StateS4SSustainability for SeychellesTWGTechnical Working GroupTETerminal EvaluationTORTerms of ReferenceUNDAFUnited Nations Development Assistance FrameworkUNDPUnited Nations Development ProgrammeUNISEYUniversity of SeychellesWHSWorld Heritage SiteEXECUTIVE SUMMARYThe GOS-UNDP-GEF Grid-Connected Rooftop Photovoltaic Systems Project (PV Project) implemented from 2012 to 2016. Its total budget was US$ 1,160,000.00. The project was executed by the Ministry of Environment, Energy and Climate Change (MEECC), and implemented on MEECCs behalf by the GOS-UNDP-GEF Programme Coordination Unit. The objective of the project is to increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-scale producers who are already connected to the national electricity grid. The project will pursue this objective by, inter alia: revising the legal, regulatory and policy framework to better support the adoption of renewable energy technologies, and grid-connected PV systems in particular; designing and implementing financial mechanisms that will make the purchase and installation of solar PV systems more attractive to Independent Power Producers; establishing the first market supply chain for solar PV systems in the country; providing training to establish the first technicians to support the installation and maintenance of PV systems; and demonstrating for the first time in the Seychelles the viability and practicality of grid-connected PV systems through pilot systems installed with various partners. The project had three components – along with their associated outcomes, outputs and activities - which contributed towards achieving the project objective. These were: Component 1: Improved policy, institutional, legal/regulatory and financial framework for Renewable Energy Technologies, Component 2: Strengthening of the technology support and delivery system for Renewable Energy Technologies and Component 3: Solar Photovoltaic demonstration projectsSection I of this report gives the context of the project, which was to increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-scale producers who are already connected to the national electricity grid. Section II summarises the results of the project under each of its 13 indicators, and targets that were expected to be reached for each of these indicators. This is based on the recorded results of the project as summarized in the annual PIRs up to 2016, with additional points raised in the Terminal Evaluation held in October 2016, and updated since.Section III analyses the results in terms of overall project performance. The performance of the project was generally satisfactory. This section also provides the ratings table for the project as given in the Terminal Evaluation held in October 2016. This section goes on to examine specific aspects of the project performance: gender aspects, human rights, contributions to direct and indirect beneficiaries, communications and publicity.Section IV reviews the project implementation strategy, focusing on the 3 areas that the project was expected to address: 1) Improved policy, institutional, legal/regulatory and financial framework for Renewable Energy Technologies; 2) Strengthening of the technology support and delivery system for Renewable Energy Technologies and; 3) Solar Photovoltaic demonstration projects. It is noted that most were successfully addressed within the project framework, and importantly that the sustainability of project interventions was rated as likely.Section V documents implementation issues as given in the risks log; there were no critical risks.Section VI provides a summary of lessons learned in the implementation of this project, as identified by the TE consultant. Section VII summarizes the projects financial expenditure. At the date of completing the final report, almost all project funds are spent. It is noted that an additional US$ 106,966 was raised in leverage funding in the last 15 monthsAn annex to the report gives the project log frame.I. CONTEXT The GOS-UNDP-GEF Grid-Connected Rooftop Photovoltaic Systems Project (PV Project) implemented from 2012 to 2016. Its total budget was US$ 1,160,000.00. The project was executed by the Ministry of Environment, Energy and Climate Change (MEECC), and implemented on MEECCs behalf by the GOS-UNDP-GEF Programme Coordination Unit. The objective of the project was to increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-scale producers who are already connected to the national electricity grid. The project pursued this objective by, inter alia: revising the legal, regulatory and policy framework to better support the adoption of renewable energy technologies, and grid-connected PV systems in particular; designed and implemented financial mechanisms that make the purchase and installation of solar PV systems more attractive to Independent Power Producers; established the first market supply chain for solar PV systems in the country; provide training to establish the first technicians to support the installation and maintenance of PV systems; and demonstrate for the first time in the Seychelles the viability and practicality of grid-connected PV systems through pilot systems installed with various partners. The Project Document was signed in May 2012 and implementation commenced in September 2012 The project duration was four years, ending June 2016, but was extended without additional cost until 31st December 2016.. The project had three components – along with their associated outcomes, outputs and activities which contributed towards achieving the project objective. These were: Component 1: Improved policy, institutional, legal/regulatory and financial framework for Renewable Energy Technologies, Component 2: Strengthening of the technology support and delivery system for Renewable Energy Technologies and Component 3: Solar Photovoltaic demonstration projectsThe implementation modality was National Execution, with the Ministry of Environment, Energy and Climate Change (MEECC) as the Executing Agency and the GOS-UNDP-GEF Programme Coordination Unit (PCU) as the Implementing Agency, with UNDP Seychelles Country Office exercising quality control. II. PROJECT RESULTS SUMMARY DescriptionDescription of IndicatorBaseline LevelTarget Level at end of projectAchievement at end of projectOBJECTIVE: Increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the SeychellesCumulative amount of reduced CO2 emissions compared to the project baseline from the demo projects by EOP, tonnes CO2eq01,512TARGET 100% ACHIEVED AND SURPASSED. It is estimated that an emissions reduction of 2,570 tons CO2eq has been achieved as of 30 November 2016 from grid-tied PV installations.Cumulative installed capacity of grid-connected PV systems (kWp)01,305TARGET 100% ACHIEVED AND SURPASSED. According to the Public Utilities Company (PUC), the total installed capacity from grid-connected PV as of 30 November 2016 is 1,878kWp.Cumulative total electricity generation from installed grid-connected PV systems (kWh)01,696,419TARGET 100% ACHIEVED AND SURPASSED. It is estimated that the total electricity generation from grid-connected PV systems had reached 3,656,587kWh as of 30 November 2016.OUTCOME 1: Comprehensive and strengthened policy and legal frameworks adopted to promote RETs and enable grid-connected renewable energy productionNo. of grid-connected RE production projects approved and facilitated by the IER by EOP0At least 30TARGET 100% ACHIEVED AND SURPASSED. As of 30 November 2016, there are 191 grid-connected PV installations across the inner islands of Seychelles. This includes 137 residential premises, 54 commercial premises (of which 6 are schools). The residential installations account for 688kW, with 69% having benefited under the PV rebate scheme. The commercial installations account for 1,190kW, with 46% having benefited under the PV rebate scheme. No. of grid-connected RE production projects that benefitted from the enforcement of the strengthened legal frameworks by EOP0At least 30TARGET 100% ACHIEVED AND SURPASSED. As of 30 November 2016, there were 191 grid-connected PV installations across the inner islands of Seychelles.Volume of funding mobilized or granted) from the incentives scheme by EOP, US$01,473,707TARGET 86% ACHIEVED In total, SR 16,418,736.40 (US$ 1,262,979.72 using US$ 1 : SR 13) has been deposited into the Development Bank of Seychelles (DBS) account; SR 8,209,368.20 (US$ 631,489.86) from the GOS-UNDP-GEF PV project funds matched by SR 8,209,368.20 (US$ 631,489.86) from the Ministry of Finance, Trade and Blue Economy (MFTBE) (Government co-financing). As of 30 November 2016, SR 4,848,225.98 (US$ 372,940.46) of these funds had been disbursed (30%), leaving enough funds to facilitate the installation of up to 1 MW more of grid-connected PV beyond the project lifespan.OUTCOME 2: Enhanced national capacity for the development, operation, and financing of RET systemsNo. of entities in the country gainfully engaged in the various supply chain activities of the PV and RET markets by EOP.0At least 10TARGET 100 % ACHIEVED. There are currently 10 PV suppliers endorsed by the Seychelles Energy Commission (SEC) and an additional 2 electrical companies that are certified to install PV in Seychelles. Procedures are underway for a formal PV standards and a registry of PV companies by early 2017, both of which will help ensure high-quality products and after-sales services in the sector.No. of personnel of the MOF, local banks and FIs that are actively working on the formulation and implementation of incentive schemes and on the evaluation of the economic/financial viability of grid-connected PV system projects by end Year 104TARGET 100% ACHIEVED. The Seychelles Energy Efficiency & Renewal Energy Programme (SEEREP) loan scheme was evaluated in 2016 under the GOS-UNDP-GEF Resource Efficiency project shows 4 banks have been processing loan applications. Unfortunately, an exact figure for number of personnel involved is not available, although one can safely assume that the baseline of 4 has been surpassed if we include the 4 banks, Seychelles Energy Commission (SEC), Development Bank of Seychelles (DBS) and Ministry of Finance, Trade and Economic Planning (MFTEP) staff in the processing of both SEERREP loan and PV Rebate applications.No. of local banks/FIs that are providing financial assistance to grid-connected PV system projects by EOP.03TARGET 100 % ACHIEVED AND SURPASSED. As mentioned above, 4 banks have processed SEEREP loan applications. Although 84 applications had been approved to date, only 11 were for PV systems. Additional public awareness activities under GOS-UNDP-GEF Resource Efficiency project may increase uptake, but this does not always translate to loan approvals by the commercial banks as they apply their own terms and conditions. In March 2016, Mauritius Commercial Bank (MCB) extended their Green Loan Scheme to include Seychelles, and to date there have been 10-12 approved applications.No. of joint ventures and/or licensing agreements between foreign PV manufacturers and local PV and RET companies facilitated by the business association by EOP03TARGET 100% ACHIEVED. As mentioned in the 2014 and 2015 PIR Reports, individual PV suppliers have developed or are established as on-going affiliations with international manufactures. To further indicate local capacity for developing joint ventures: In November 2015 Government launched a tender for a 4MW Lagoon PV farm and 2 local companies partnered up with international companies to submit a bid. Both joint ventures have been shortlisted for the second round together with 10 other international investors.OUTCOME 3: Increased electricity production from RET systems (e.g., PV systems) and interest among energy sector investors and operators.Cumulative amount of reduced CO2 emissions compared to the project baseline from the demo projects by EOP, tonnes CO2eq01,512TARGET 100% ACHIEVED AND SURPASSED. To date, the approach was taken that all grid-connected PV installation post-2012 may be regarded as demonstration projects. If this logic is continued, then as such it is estimated that an emissions reduction of 2,570 tons CO2eq has been achieved as of 30 November 2016.Cumulative total electricity generation from grid-connected PV systems by EOP, kWhMinimal1,696,419TARGET 100% ACHIEVED AND SURPASSED. Following the same logic as in the previous indicator - that all grid-connected PV installation post-2012 may be regarded as demonstration projects - then as such the total electricity generation from grid-connected PV systems was 3,656,587 kWh as of 30 November 2016.No. of replication projects implemented that are based on or influenced by the success of the PV system demonstrations by EOP03TARGET 100% ACHIEVED AND SURPASSED. Replication Project 1) The GOS-UNDP-GEF Resource Efficiency Project is on going. Replication Project 2) The Government launched the PV democratization project (solar homes project) in late 2015 and to date 25 of the 400 targeted homes have benefited from a free 3kW PV installation. This will significantly reduce the socio-economic skew in households PV uptake. Replication Project 3) A solar school programme was launched in early 2016 and to date 4 schools on La Digue and Praslin have benefited from free PV installation; the Government is in the process of sourcing additional funds to do the same for schools on Mahe, aiming to install at least 10 kW on each schoolReplication Project 4) As of early 2016, the Government together with UNDP embarked on the development of a national proposal for GCF focusing on scaling-up PV; Replication Project 5) A further commercial solar farm of 5MW is to be developed on Romainville island utilizing space under the existing wind turbines. Replication Project 6) The Government has also tendered for a 4MW lagoon PV farm Replication Project 7) Project results and lessons learned have been taken up within GOS planning for a 100% renewable energy strategy, involving PV, wind turbines, biofuel and other sources, battery and pump storage. This is expected to be developed over the next years and implemented through NAMA facilityIII. PERFORMANCE REVIEW III.1 Performance against indicatorsAccording to the Terminal evaluation, the overall project results rating is Highly Satisfactory.The project has delivered expected results and reached planned objective and outcome level targets.Due to the implemented adaptive management and implementation strategy adjusted to actual PV market development, several output-level indicators are not relevant and some output level targets have not been met. These indicators refer mostly to project activities rather than outputs as indicated, and thus this did not impact achievement of the overall project objective and outcome results. As of 30 November 2016, 12 of the 13 DO targets have been achieved, 9 of which have surpassed expectations. The only target not achieved relates to payment of funds into the rebate scheme (86% of the expected fund) and this is not considered problematic. The fund has actually been under-utilized, with many clients opting for paying the full cost of installation rather than bothering with a rebate application. This indicates a high level of awareness of the benefits of PV. Disadvantaged households not able to afford PV are targeted by Government schemes to provide free installations. At EOP there is still a considerable amount remaining in the fund to cover any new applications that may be submitted, and there are three loan schemes that can be accessed (SEEREP under the GOS-UNDP-GEF resource efficiency project, a Government SME financing scheme and the MCB green loan from the private sector) should these funds prove insufficient over the coming years. OBJECTIVE LEVEL: Progress can be regarded as highly satisfactory with regards to overall uptake of PV systems 30 November 2016 (191 installations achieved vs. 30 targeted installations and 1,878 kWp installed capacity vs. 1,305 kW targeted). Their contribution to electricity generation is 3,656,587 kWh of actual generated electricity vs. 1,696,419 kW targeted. Emissions reductions are calculated at 2,570 tons CO2eq achieved vs 1,512 tons CO2eq targeted. OUTCOME 1 (improved policy, institutional, legal/regulatory and financial framework for Renewable Energy Technologies): As of 30 November 2016, the rebate scheme contributed towards 69% of residential PV installations during the project lifetime and at least 46% of commercial installations. Despite the low PUC electricity tariffs in 2016, investment in PV continues to grow, particularly in the residential sector, but new installations during the last year seem not to have bothered with the rebate scheme opting for full payment. Feedback has indicated that client choice in this respect is due to the rebate scheme being complicated and time-consuming. At any rate, sufficient funds remain in the rebate scheme at EOP to fund at least another 1 MW of installation, such that a shortfall in the amount paid into the rebate scheme (noted above) is not regarded as a significant issue for the project. It is noted that GOS fulfilled its commitment to matching project funds, and has also made other funds available through associated RET financing schemes. OUTCOME 2 (strengthening of the technology support and delivery system for Renewable Energy Technologies): While there are 10 SEC-endorsed PV suppliers in Seychelles, and targets are met for engagement of banks and capacity to establish joint ventures, progress is considered MS; this is because the achievements of earlier years have not been carried forward this year. While additional training needs have been identified, the PV project has lacked funds to continue supporting e.g. the rather critical long-term capacity development through PV training programs at the Seychelles Institute of Technology (SIT). This has been partially address through leveraged funds from the Environmental Trust Fund (ETF), but additional funds are required to anchor the PV training programme. Although, SIT staff were provided with training in City and guilds training in 2014, training of trainers in 2015 and again hands-on experience on PV installation in 2016 through working with private companies, both instructors are no longer in a position to teach. On a more positive note, staff from the Public Utilities Company (PUC) and Seychelles Energy Commission (SEC) have been actively involved in data analysis and reporting (e.g. PUC demo project, National Performance Assessment, PV rebate scheme monitoring) to develop internal capacity. OUTCOME 3 (solar PV demonstration projects): Project reporting has considered all PV installations post-2012 as demonstration projects, and if this is accepted then progress can be considered as HS with regards to overall uptake of PV systems (191 to date), their contribution to electricity generation (3,656,587kWh) and thus emissions reductions (2,570 tons CO2eq). It is also noted that there has been extensive replication and uptake of various project initiatives into additional household-level and commercial PV schemes. The project has throughout its lifetime engaged extensively with stakeholders at all levels and has conducted an intense education and awareness campaign that is reflected both in the number of PV installations and in the number of new projects/programmes focusing on PV. CRITICAL RISKS: Net-metering has remained non-contractual, which was viewed as a potential critical risk in discouraging uptake of PV. However, this does not seem to have had much impact on the uptake of PV, possibly because of the introduction of the PV rebate scheme for the commercial sector in April 2015. The Seychelles Energy Commission (SEC) and the Public Utilities Company (PUC) are now in the process of tendering out the first formally recognised Independent Power Producer (IPP), which will allow for a feed-in tariff to be established in the coming months, setting a precedent. Another potential risk has been the recent lower electricity prices due to lower global fuel prices which was expected to impact on uptake of PV systems, but again it appears that clients are able to take the longer term view (fuel prices and electricity prices will one day rise again). The uptake of PV has been slower than expected under the rebate scheme and also under the associated SEEREP loan scheme, but mechanisms are being put in place under the GOS-UNDP-GEF Resource Efficiency project to better market the schemes and make them more appealing to potential clients. While applications have increased significantly in the last few months, this does not necessary translate into successful loan applications from commercial banks. A COMMENT ON LONG TERM SUSTAINABILITY: With regards to the long-term sustainability of project results, there are 2 PV farms in the pipeline that will install another 11 MW of PV by the end of 2017 and push for the necessary policy change to allow for a Feed-in Tariff for Independent Power Producers (IPP). Government is looking at possible South-South Cooperation to further implement the Solar School Programme on Mahe, targeting 10 - 15kW per school or some 300 – 400 kW in total, as well as continuing with the PV democratization project where 400 low-income families on social welfare are slated to receive a 3 kW PV system each for free or 1.2 MW in total. The Government, with UNDP assistance, will also be developing both a GCF project proposal and a NAMA project proposal, both of which are aimed at implementing the Nationally Determined Contributions (NDCs) that could potentially result in 100,000 tCo2/yr in emission reductions. In the longer term, the Government is actively developing a strategy for 100% renewable energy.III.2 Progress reviewIII.2.1 Overall progressThe project terminal evaluation, undertaken in October 2016, rated the project as follows:CriterionEvaluator’s Summary CommentsRatingAssessment of outcomes Overall rating of project objectives and resultsNO COMMENT FROM JIRI IN TABLEHighly Satisfactory A. 1. Effectiveness NO COMMENT FROM JIRI IN TABLEHighly SatisfactoryA. 2. RelevanceNO COMMENT FROM JIRI IN TABLERelevantA. 3. EfficiencyNO COMMENT FROM JIRI IN TABLEHighly SatisfactoryA.4. ImpactsCATEGORY NOT INCLUDED IN TE REPORT???B. Sustainability of Project outcomes; (overall rating); Sub criteria (below)B. 1. FinancialNO COMMENT FROM JIRI IN TABLEModerately LikelyB. 2. Socio PoliticalNO COMMENT FROM JIRI IN TABLELikelyB3. Institutional framework & governanceNO COMMENT FROM JIRI IN TABLELikelyB. 4. EnvironmentalNO COMMENT FROM JIRI IN TABLELikelyC. Achievement of outputs and activities (see section on overall results and impacts)D. Monitoring and Evaluation (overall rating); Sub criteria (below)D. 1. M&E DesignNO COMMENT FROM JIRI IN TABLEHighly SatisfactoryD 2. M&E plan Implementation - use for adaptive managementNO COMMENT FROM JIRI IN TABLEHighly SatisfactoryD 3. Budgeting & Funding for M&E activitiesCATEGORY NOT INCLUDED IN TE REPORT???E. Catalytic RoleCATEGORY NOT INCLUDED IN TE REPORT???F. Preparation and readinessCATEGORY NOT INCLUDED IN TE REPORT???G. Country ownership CATEGORY NOT INCLUDED IN TE REPORT???H. Stakeholders involvementCATEGORY NOT INCLUDED IN TE REPORT???I. Financial planningCATEGORY NOT INCLUDED IN TE REPORT???J. Implementation approachCATEGORY NOT INCLUDED IN TE REPORT???K. UNDP/GEF Supervision and backstopping CATEGORY NOT INCLUDED IN TE REPORT???The terminal evaluation commented as follows:The PV project has overpassed its objective and outcomes targets. 181 new PV systems have been installed as of September 30, 2016 with a combined installed capacity of 1.79 MW resulting in 2,449 tons of CO2eq saved.PV technology was adopted faster than envisaged due to strong incentives provided by the net- metering scheme. Although the PV net-metering support scheme has not been formalized in legislation yet, it has been approved by the Government/SEC, and it is implemented effectively by the PUC.Several output-level indicators that actually refer to activity-level are not applicable because the project implementation strategy was adjusted to the actual market development and these activities were deferred. For example, the project did not have to tender for and install demonstration projects first, because the market-driven PV installations took up quickly.III.2.2 GenderThe project does not have a specific gender dimension. It should be noted, however, that Seychelles is a matriarchal society, so generally the emphasis in project implementation is placed getting men involved. The energy sector is atypical in that it is dominated by men, so any inroads made by women are a positive step forward. The new PV project manager is a woman and she is now leading the various technical activities (i.e. the national performance assessment and production of an irradiation map), as well as participating in linked activities such as supporting Government development of a PV farm proposal to GCF. There are at last 3 women working with PV companies in positions of authority, namely 2 female company directors and 1 female sales manager. This has been possible because of the various incentives scheme under the PV project that has allowed the renewable energy sector to grow rapidly since 2012, thus providing opportunities for women to get involved. It should be noted that in recent years the majority of qualified school graduates are women. At least 4 of the 11 staff at SEC are women, 3 who occupy technical posts. While this may not be a direct input from the PV project, their direct involvement in PV project workshops and PV project education and awareness activities allows them to act as role models for the younger generation. Woman dominated the team that organised the Solar School Launch in November 2015 (La Digue) and again in May 2016 (Praslin). At each school benefiting from a free PV installation, both female and male students were encourage to get involved in the various displays (see YouTube video of Praslin Launch) that were incorporated into the days' agenda. Both genders were also encouraged to participate in the PV educational activities that were conducted at La Digue school with S4S following the installation of the 5kW PV in November 2015. Similarly, PV suppliers for the Praslin school installations were required to provide a training activity for teachers of both genders; parents were also welcomed.III.2.3 Human rightsThis is not applicable to the GOS-UNDP-GEF PV project.III.2.4 Contributions to direct and indirect beneficiariesThe Seychelles Institute of Technology (SIT) has been the primary direct beneficiary under the GOS-UNDP-GEF PV project. In November 2015, ownership of the 5kW PV installation at installed under the DENA solar roof programme by Sea and Sun Technology Germany was formally transferred to SIT. This system will used in the PV training courses that will be offered at SIT, to this end training was provided for 2 instructors. In 2014, Alex Labrosse and Jule Belmont received City & Guilds training in PV design and installation. This was followed by a training of trainers in 2015, as well as hands-on experience in 2016 during the installation of PV on Baie Ste Anne Primary School. To facilitate the development of PV training course for both students and industry professionals, leverage funding was sourced from the Environmental Fund to buy equipment for SIT. Course are expected to begin in 2017.Following on from the Solar School launch, Sustainability for Seychelles (S4S) submitted a proposal for funding from the Canadian High Commission to buy PV kits for every school lab to use for innovative experiments, science fair etc. so that students and teachers can manipulate min-panels to better learn how PV works. This will ensure that students can better appreciate and understand the systems that have been, and will be, installed under the Seychelles Solar School Programme which is targeting all Government schools. The PV project has also been working with S4S on a PV documentary to raise awareness on climate change mitigation, renewable energy, it benefits as well as the various requirements and processes involved in going solar. Component 1 of the PV project addressed legal frameworks and policy reforms which have benefited the private sector, namely the 10 PV suppliers that have been operating in Seychelles since 2012. The GOS-UNDP-GEF PV project has received positive feedback from suppliers as queries/concerns are addressed in a timely fashion. Over the course of the project, suppliers were kept abreast of new developments in the industry and all have been provided equal opportunities to become involved in the Solar School Programme and other PV initiatives. The PV project has also indirectly benefitted staff from the Public Utilities Company (PUC) and Seychelles Energy Commission (SEC) have been actively involved in data analysis and reporting (e.g. PUC demo project, National Performance Assessment, PV rebate scheme monitoring) to develop internal capacity. III.2.5 Communications and publicityThe project implemented an extensive range of awareness measures such as newspaper and magazine articles, radio and television documentaries etc. The project also participated in national communications fora such as national days (World Environment Day, etc.), fairs and expos.The PCU website (pcusey.sc) includes comprehensive information on the project and the other projects of the GOS-GEF project portfolio. The information is accessible to the public and includes a general description of the project, all the products and consultancy reports funded by the project (including reports prepared by partners where available), as well as project implementation reviews, including the midterm and terminal review, and other reports. The information is well organized according to outcomes and type of document. The PCU also manages a Facebook account for brief project updates and a YouTube account where the various documentaries created under the PV project have been uploaded.A website was set up under the GOS-UNDP-GEF PV project (pvproject.sc) which provides up to date information on the various financial incentive schemes available to potential PV owners.IV. IMPLEMENTATION STRATEGY REVIEWAs is noted in the ProDoc, the implementation strategy of the project focused on bringing together the diverse government and non-government partners in Seychelles to work more closely in partnerships that augment their individual capacities, knowledge and skills. NO IDEA WHAT TO ADDIV.1 SustainabilityProject sustainability was analysed by the Terminal Evaluation consultant, who found no financial, socio-economics, institutional, governance or environmental risks to the sustainability of impacts from the project for the reasons explained in the table below.Mechanisms for sustaining project resultsResult/impact Sustainability mechanism in placePV democratisationThe Government launched the PV democratization project (solar homes project) in late 2015 and to date 25 of the 400 targeted homes have benefited from a free 3kW PV installation. This will significantly reduce the socio-economic skew in households PV uptake. Solar School ProgrammeA solar school programme was launched in early 2016 and to date 4 schools on La Digue and Praslin have benefited from free PV installation; the Government is in the process of sourcing additional funds to do the same for schools on Mahe, aiming to install at least 10 -15 kW on each school.GCF funding proposalThe Government together with UNDP have embarked on the development of a national proposal for GCF focusing on scaling-up PV. The proposal will be submitted to the GCF board in April 2017. The 2016 GCF proposal, for up to $23M, is to: 1) set up a vehicle for longer term technical support and financial management to develop a pipeline of projects and policies toward the GoS 100% RE target; 2) initial investments to overcome technical barriers to unlock private sector investment in RE; and 3) initial policy and regulatory reform to facilitate appropriate incentives (primarily through tariff changes) for RE uptake.NAMA funding proposalThe Government together with UNDP have embarked on the development of a national proposal for the NAMA Facility focusing on a 100% renewable energy strategy, involving PV, wind turbines, biofuel and other sources, battery and pump storage. 5MW Romainville PV FarmA commercial solar farm of 5MW is being developed by PUC on Romainville island utilizing space under the existing wind turbines. 4MW Lagoon PV FarmThe Government has tendered for a 4MW lagoon PV farm South-South CooperationThe Government is looking at possible South-South Cooperation to further implement the Solar School Programme on Mahe, targeting 10-15kW per school or some 300-400kW in total.PV rebate schemeAs of 30 November 2016, SR 4,848,225.98 (US$ 372,940.46) of the PV rebate funds at DBS had been disbursed (30%), leaving enough funds to facilitate the installation of up to 1 MW more of grid-connected PV beyond the project lifespan. A review of the rebate scheme is planned for April 2017.SEEREP Loan schemeAs mentioned above, 4 banks have processed SEEREP loan applications. Although 84 applications had been approved to date, only 11 were for PV systems. Additional public awareness activities under GOS-UNDP-GEF Resource Efficiency project may increase uptake, but this does not always translate to loan approvals by the commercial banks as they apply their own terms and conditions. MCB Green loan schemeIn March 2016, Mauritius Commercial Bank (MCB) extended their Green Loan Scheme to include Seychelles, and to date there have been 10-12 approved applications.UK Space Agency ProjectThe UK Space Agency has approved a project which will use earth observation (EO) and other data sources to support Small Island Developing States (SIDS) in their transition from fossil fuel electricity generation to renewables by developing a proof-of-concept energy planning tool – RE-SAT. The aim is to test the proof-of-concept demonstrator focusing on Seychelles and solar and wind renewable resources. The project is led by the Institute of Environmental Analytics (IEA) in partnership with UNDP and the Government of Seychelles and fits with the initiatives that are already underway in Seychelles through the roadmap for 100% renewable energy by 2050. IV.2 Participatory/consultative processesThe engagement of partners and beneficiaries was generally in accordance with the stakeholder involvement plan (annex II of the Prodoc). All identified agencies and institutions were involved at various stages, and project engagement. As envisaged, the project was guided by a Project Steering Committee comprised of most key stakeholders. A joint Steering Committee is established to oversee the current PV project and the closely associated Resource Efficiency project, ensuring close coordination. Bi-annual Steering Committee meetings were organized to periodically review project progress and approve the work plans. The SC will meet once more to review and approve the TE report and management response, and thereafter will continue as SC of the RE project only.IV.3 Quality of partnershipsNO IDEA WHAT TO ADDIV.4 Timely delivery of outputsThe delivery of many outputs was delayed. In the early stages of the project there were delays in field activities due to delays in receipt of funds (which was itself due to complex procedures involved in dealing with four responsible partners who took a while to understand the procedures, and a situation whereby one partner not spending advance funds could prevent all other partners from receiving their next tranche). A number of outputs were thus delayed beyond the end of the project lifetime, although at the time of writing (September 2016) all are on schedule to be achieved in 2017.V. IMPLEMENTATION ISSUES (Risks Log)Risks log last updated September 2016. Most of the Risks identified at the project inception have been retired.TypeDate IdentifiedDescriptionDateComment or Management ResponseCritical FlagFinancial5/6/11Domestic market is too small to make imports and services for PV systems economically competitive, or to enable the establishment of committed local PV dealers and technicians28/05/2013The project will work with the Ministry of Finance and the Development Bank of Seychelles to ensure long-term (post-project) financial incentive programs for PV system operators, so as to promote rapid and significant market growth (to help meet the national policy goal of 15% of all energy production from RETs by 2030). The project also will undertake significant efforts to reduce and/or eliminate technical capacity barriers, which currently constrain investment in PV systems, by establishing a reliable and viable supply chain for PV systems in the Seychelles, including training to private sector partners (e.g. electricians, technology sales companies, end-users such as hotels and managers of outer island infrastructure) in business planning, life cycle costing, quality assurance, procurement, and marketing of PV and other RETs, so as to encourage private businesses to provide the full range of services needed for delivery, installation, commissioning, and after sales services of these technologies. In addition, the project will coordinate closely in sharing lessons learned with the UNDP-GEF technology transfer project “Removal of Barriers to Renewable Energy in Mauritius, Rodrigues and the Outer Islands”, and will explore the possibility of relying (at least in part) on supply chain operators in Mauritius to service the Seychelles market and/or on developing opportunities for Seychelles companies to supply the Mauritius market.Retired???1/24/14The domestic market is not only small, but is also less attractive for consumers. This will somewhat me mitigated by the rebate scheme, but will still saturate relatively quickly. SEC's long term plan to gradually increase the domestic tariff rates will eventually serve to increase the size of the market as well as viability of PV. Installers are not entirely convinced that such changes will happen fast enough. ???2/8/15Since the introduction of the rebate scheme, a total of 44 systems have been installed and rebated. This has amounted to some 225 kWp of installed capacity. The level of activity in this market suggests that the cost of PV is in line with an acceptable ROI. ???22/2/2016There are currently 12 PV companies endorsed by SEC but only 3 submit monthly applications, the rest submit 1-2 applications every 6-12 months. While three companies bare operating successfully, the above suggests that the market is becoming saturated.There are 111 installations to date - 78 residential and 31 commercial. Rebate uptake in residential installations is 78% while only 52% of commercial premises have applied for rebate. While residential applications continue to increase, uptake by the commercial sector is slowing down.???9/30/16This is no longer regarded as a risk. There are currently 10 PV suppliers endorsed by SEC and procedures are under way to have them formally certified by SEC. There are 181 PV installations to date and many more in the pipeline. Risk is retired.Financial5/6/11Financial support for RETs does not extend beyond the end of the project28/05/2013During the PPG phase, the project team has carried out consultations with two international finance institutions that are in the process of developing new financing mechanisms that can support the purchase of solar PV systems over the long-term. The European Investment Bank (EIB) is working with the Development Bank of Seychelles to establish a renewable energy and energy efficiency projects loan mechanism. The EIB has explicitly stated that it has a “long-term interest is to provide finance for a range of renewable energy technologies and projects, as well as energy efficiency investments in Seychelles”, and that after the initial renewable energy line of credit is established, “it will be a relatively simple matter to approve and implement further lines of credit in the future… for RE/EE investments to a range of financial intermediaries”. In a separate initiative, the International Finance Corporation has signed a Memorandum of Understanding with the Seychelles Ministry of Finance, the Development Bank of Seychelles (DBS) and Nouvobanq (a commercial bank owned by the Government of Seychelles), to develop a High Risk Capital Loan Program, which if implemented also will provide financing for “renewable energy and energy-saving projects through the private sector”, and would most likely focus on the household sector in its initial stages. In addition, during the project implementation period, the project team will work with the Seychelles Energy Commission to explore possible options for a tariff surcharge or other funding to enable a long-term financial incentive scheme. It is worth noting as well that the proposed project is designed to jump-start the solar PV industry in the Seychelles, which should bring down costs through better supply chains; increased competition; and the existence of trained local personnel for operations and maintenance. Project activities also will help to increase revenues (or savings) through developing information on the best technologies / systems for local conditions, and providing data on site-specific solar irradiation levels. Retired???1/24/14This is still a concern, especially for the domestic market. Nevertheless, models show that PV produces attractive returns and payback periods for the commercial sector as well as the high end domestic sector. A new leasing bill has been passed, making it legal and feasible for third party ownership of distributed PV power to be considered as an alternative to subsidized systems ???2/8/15The SEEREP (Seychelles Energy Efficiency and Renewable Energy Programme), as a low interest loan scheme, has been set up in tandem with the PV project rebate scheme. This has not been very successful, but will be reviewed for the next phase of the rebate scheme, as well as under the UNDP-GEF Resource Efficiency Programme. There is no indication of financial support for RETs being cut back.???2/22/16The SEEREP is in process of review, but Government has indicated that it does not plan to reduce or cut it's commitment to RETs. The SEEREP loan limit is to be increased to SR 150,000 to encourage more uptake. Further, Government has introduced a new initiative with support from Government of India for democratization of PV, meaning provision of free PV systems to poor households. This is not expected to impact significantly on SEEREP, which has different target groups and a focus on multiple energy efficient appliances and RETs, rather than just PV.???9/30/16This is no longer regarded as a risk. The SEEREP loan scheme has been reviewed and the loan limit increased to SR 150,000. There are sufficient funds in the DBS account to support an additional 1 MW of PV installations under the PV rebate scheme, continuing post-project. In parallel, MCB has launched a Green Loans scheme targeted at renewable energy, energy efficiency and pollution mitigation. A PV documentary has been produced to promote all the financial incentives and the GOS-UNDP-GEF RE project is also running spots on SBC which should increase up-take. Risk is retired.Regulatory5/6/11Enactment of new and revised energy legislation and regulations is delayed28/05/2013Working in partnership with the EU-funded Seychelles Climate Change Support Partnership, the project preparation team has ensured that a new draft Energy Act (which will authorize grid-connected auto-producers and PPAs; establish the SEC as an independent electricity regulator; and authorize a new grid code to enable grid-connected RETs) will be submitted to the National Assembly before this project even commences. In addition, these two projects will maintain momentum with key government agencies (Seychelles Energy Commission; Ministry of Finance; Ministry of Home Affairs, Environment, Transport, and Energy) to champion new energy regulation.N???1/24/14The Act has been passed, and a Gross Net Metering tariff also exists. Current issues pertain to a system size cap imposed by PUC (no more than 50% demand) that has been affected; the SEC is yet to take any action on this issue. Political5/6/11Lack of inter-institutional ownership and cooperation in implementing the project activities 28/05/2013Establishment of a viable model for grid-connected independent power production may be perceived as a threat by the existing power production monopoly (PUC). The project will continue to work with PUC leadership to make clear the potential benefits to PUC of grid-connected RETs (including their own installation of RETs, as well as opportunities to become the major player in installing, operating, and servicing RETs owned by auto-producers), and with key government policymakers to ensure that legislation and policies mandate on-going cooperation between PUC and auto-producersN???1/24/14There is mention of potential IPP projects that may be approved in future, but as of yet, no project has been approved. IPPs, if and when they happen, will be coming into a market that will have already shifted towards a distributed PV power paradigm. ???2/8/15PUC has demonstrated a more open and constructive attitude towards distributed generation using PV. Inter-institutional cooperation is thus anizational5/6/11PV system operators do not participate as promised due to concerns about Government commitment, pricing, and/or technical challenges28/05/2013The project anticipates that regulations authorizing grid-connected auto-producers and the formulation of Installation Agreements will take place during the first year of the project, which together with Ministry of Finance commitments to financial incentives, will reassure PV system operators that their systems will be integrated into the electricity grid and that pricing will be competitive and transparent. In addition, the project team will work with PUC to sort out all technical issues related to grid-connection in the early months of the project, and to encourage PUC to assist with installations and/or to train 3rd party technicians to carry out installationsN???1/24/14Auto-producers exist, MoF have committed funds to the financial rebate scheme, and PV system installers are set to benefit from these key milestones. PUC has also introduced a net metering scheme, allowing auto-producers to send surplus energy onto the grid. This risk is reducing rapidly and is expected to be retired shortly.???8/12/14Investments from end users are not secured because although a net-metering system has been introduced it is non-contractual: it does not involve a contract signed by PUC to guarantee net metering and/or rates over any period of time. PUC can thus change the rate of payment for surplus energy entering the grid, affecting returns on the investment.???2/8/15SEC's increasing status as a regulator, subsequent to reorganization of Ministry of Environment and Energy in February 2015, is likely to abate this risk, although this cannot be determined at this time.???22/2/2016Some PV suppliers are by-passing the PUC PV application process and connecting PV systems to the distribution board, particularly for clients who suffer from regualr power cuts and want to have battery back-ups. As with the net-metering, there is no legal framework to regulate this but PUC will not process applications for PV systems with battery back-up. This means that there are a number of grid-tied systems connected after the meter which are undocumented and could pose a risk as there is no procedure to ensure that they are installed correctly.???9/30/16The SEC PV company registry should help to document PV installations that by-passed the PUC PV application process and are connected to the distribution board. This wil allow SEC to inspect the systems and ensure they are correctly installed and do not pose a risk, although some capacity building may be required.Operational5/6/11Human resources are slow in being hired and/or insufficiently trained to successfully implement the project28/05/2013The project will seek qualified technical personnel from throughout the Indian Ocean region, and if necessary, will recruit internationally for a Solar PV Technical Expert. In addition, as part of the UNDP-GEF Programme Coordination Unit in the Seychelles, the project will benefit from well-established and efficient recruitment processes. The project also will establish partnerships with recognized international entities and/or individual experts with proven track records of successfully supporting similar actions in other countries.Reinstated Y???1/24/14A Solar PV expert has been hired since Q4 2013 to support training of national staff (among other tasks). Training has been organised with Mauritius and organisations specialising in technical training of installers and economists. Certification for installers is due to be implemented by the end of Q2 2014.???2/8/15Training of approximately 40 installers has been successfully undertaken. A fulltime course is currently being implemented at the SIT. The only remaining gap is that SEC still does not have a staff economist. In general, human resource issues are not emerging as a major constraint. Risk retired.???22/02/16UniSey is offering a week long Renewable Energy course from 29th February to 4th March 2016 at SR 1,800 per day - which anticaptes a demand for training. While PV supliers are keen to participate, however, the cost is beyond their budget and there are insufficient funds avalable under the project to subsidise the training for SEC staff and PV installers.???9/30/16SIT no longer has internal capacity to offer PV training courses - one trained staff has resigned and the second trained staff may not be able to continue teaching after undergoing a throat operation in Novemember 2016. SIT is considering the option of hiring external instructors but may not be able to raisie the funds needed to cover their fees.Regulatory5/6/11Public Utilities Corporation may limit the amount of grid-connected PV to 2% of grid-connected electricity production (i.e. 880 kWp of the 44 mWp capacity)28/05/2013The project will work closely with PUC to resolve any technical concerns regarding grid-connected PV and overall grid stability so that PUC fully understands the compatibility of PV systems with electricity grids as demonstrated throughout the world, and so that PUC can abide by stated government policy to greatly increase grid-connected RETs in the country. Retired???1/24/14This is no longer regarded as a risk, since a wind farm (managed by PUC) of approximately 6MWp is up and running. Government has made clear its intention of continuing to increase the number of RET projects in the country, and has also show strong political will to ensure that auto-production of RE from PV becomes an option for all buildings in Seychelles. Indeed, there are technical concerns over the grid’s capacity to absorb, and studies are due to be made this year (2014) to better understand its limits. A new partnership between GOS and Reunion island was established in 2013; this will serve to provide technical assistance in this regard. Reunion have a limit of up to 30% grid connected electricity production from RETs. Risk retired.VI. LESSONS LEARNEDThe project provides lessons learned and experience that input into the implementation of the current portfolio of GOS-UNDP-GEF projects, and potentially the new round of projects anticipated under GCF funding and South-South Cooperation. Besides the more global lessons learned noted below (as identified in the TE report) there are many operational lessons that will be applied in the future energy related projects. Lessons learned 1. Proper project timing, and strong and effective country ownership and commitment are key prerequisites for successful project implementation. The PV project matched with this time-window opportunity when the project was launched after Seychelles had adopted RE policy and targets already, but practically no PV installations were in place yet. The timing of the project can serve as the best-case example, maximizing impact against investment.Lessons learned 2. High electricity tariffs combined with provisions allowing feed in of the generated power into the grid and affordable terms of financing create a strong market incentive for investors and do not require significant additional subsidies. However, PV requires 100% back-up, it does not offset utility infrastructure costs, and thus remaining electricity tariffs need to finance all utility infrastructure costs in case of a monopolistic market (or transmission/distribution costs only in case of a competitive market). PV technology makes the best economic sense in case of high marginal variable utility generation costs, i.e. high fuel costs, especially in the short/mid-term. The subsidy needed to cover the difference between avoided fuel marginal costs and PV generation costs in Seychelles can be financed either by tax payers from public budgets, or by electricity customers through utility electricity tariffs. The net-metering scheme in Seychelles with heavily cross-subsidized electricity tariffs provides a very strong incentive for high-tariff consumers to install PV at the cost of PUC/other customers, and at the same time there is no financial motivation to invest in PV for low-tariff customers.Lessons learned 3. Technical integration of PV into the PUC infrastructure is a more complex task than envisaged and budgeted for in the project document. Integration of PV technology impacts utilities’ capacity to control frequency and voltage in their grids. Capacity to control frequency in the grid within required limits requires sufficient fast (spinning) capacity at the utility power plant. PV generation depends on actual solar irradiation that can change quickly with clouds, and thus increases demand for frequency control capacity. The higher the PV market penetration, the greater the need for frequency control capacity. Within the scope of the PV project, with 1.79 MWp of PV installed so far, the frequency control is manageable with existing PUC technologies. However, problems with voltage controls in low-voltage networks may arise and should be addressed even with low PV penetration rate – especially in cases when a utility has difficulties with maintaining proper voltage in low-voltage networks. In such cases, projects designed to expand PV should be followed-up with an additional support on grid stability, as it is the case in Seychelles, which integrated grid strengthening into their first application for Green Climate Fund support.VII. FINANCIAL STATUS AND UTILIZATIONVII.1 Financial summaryThe project had a total GEF grant of US$1,160,000, which was expected to be supported with US$6,496,699 of co-financing from Government and other partners. Additionally, US$106,966 was raised in leverage funds for 2016 giving a project total of US$6,603,665. At the time of this report, 15th December 2016, more than 98% of grant funds had been spent.VII.2 Financial overviewFinancial overview for the whole duration of the project DONORCOMMITTED (US $)EXPENDITURES (US $)20122013201420152016TOTAL*UNDP-GEF1,160,000 USDFROM NORMANGovernment1,224,697 USD631,490 USDUNDP60,000 USD60,000 USDOther4,842,441 USD11,048,318 USDTOTAL* Figures from Terminal Evaluation reportVII.3 Financial utilization reportFinancial utilization by outcomesItemAccountOverall Budget 20122013201420152016Total AmountBalance US$Outcome 1: ?International Consultants71200Local Consultants71300Contractual Services Individuals71400Travel71600Contractual Services - 72100OUTCOME 2: ?International Consultants71200Contractual Services - 72100Audio Visual, Printing and Prod Costs74200Misc Expenses74500OUTCOME 3:International Consultants71200Contractual Services - 72100Audio Visual, Printing and Prod Costs74200Misc Expenses74500OUTCOME 4: Project Management???International Consultants71200Local Consultants71300Contractual Services Individuals71400Unrealized Losses (See note below)76120Learning Costs75700 Total ExpenditureANNEXESA1. LOGICAL FRAMEWORK ................
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