1

CRITERIA

AREI Criteria approved by the Board of Directors

1 Approved AREI Criteria

AFRICA RENEWABLE ENERGY INITIATIVE

Criteria to be considered for attribution and eligibility/prioritization of funding

Thisdocumentoutlinesthecriteriaguidelinestobeappliedfora)determiningeligibilityandprioritisationofdirectsupport/fundingofprojectsandprogramsthroughAREIfundsandb)attributingprojectsandprogramsundertheAfricaRenewableEnergyInitiative(AREI).Itisintendedtooperationalizetheprinciples,guidelinesandprioritiesasmanifestedintheAREIFrameworkandendorsedbytheCommitteeofAfricanHeadsofStateandGovernmentonClimateChange(CAHOSCC),25September2015,theAfricanUnionSummit,31January2016andtheAREIBoardofDirectors,22September2017.CONTEXT AND BACKGROUND

1 Goals, guiding principles and key features of the AREI AREIconstitutesaframeworkintendedtoprovideguidanceandcoordinationacrossinstitutionsandallAfricancountriestofacilitateactiontowardsAREI’sgoals,andensureadditionalitytoexistingactivitiesandsupport.AtitscoreAREIisaboutdevelopingandpromotingavisionofpeople-centered,distributedandotherrenewableenergysystemsthataimstoinfluenceallrelevantactorsonthecontinent.

ThetwooverallgoalsofAREI,alignedwithAgenda2063,theUnitedNationsSustainableDevelopmentGoals(SDGs),andotherrelevantregionalandglobalgoalsincludingtheNewDealonEnergyforAfrica,are:

1. Tohelpachievesustainabledevelopment,enhancewellbeing,andsupportsoundeconomicdevelopmentbyensuringuniversalaccesstosufficientamountsofclean,appropriateandaffordableenergy;and

2. TohelpAfricancountriesleapfrogtowardsrenewableenergysystemsthatsupporttheirlow-carbondevelopmentstrategieswhileenhancingeconomicandenergysecurity.

Toachievethesegoals,AREIshalladheretothefollowingprinciples:

» ContributingtoachievingsustainabledevelopmentinAfricabyscalingupandacceleratingthedeploymentandfundingofrenewableenergyinAfrica;

» AddressingtheentireAfricancontinentandbenefittingallAfricancountries;

» Boostingintra-regionalandinternationalcooperationandpromotingandsupportingonlythoseactivitiesandprojectsthatareagreedbyallcountriesconcernedandimpacted;

» Promotingawiderangeofrenewableenergytechnologies–inparticularsolar;wind;pico-,micro-,small-andmedium-scalehydro;modernbiomass;geothermal;andmarine–providedtheyaresociallyandenvironmentallyappropriate,gendersensitiveandinlinewiththeseguidingprinciples;and

» Advancingthefullrangeofrenewableelectricityapplications(fromgrid-connectedtomini-gridstosmallstand-alonesystems)andotherformsofrenewableenergy–withparticularconsiderationpaidtoapplicationsthatmeettheneedsofpoorpeople.

2 Approved AREI Criteria

AREIshallfurthermorebeguidedbythefollowingprecepts:

» Countryownershipintermsofvisions,policiesandimplementation;

» Transformative,programmaticapproaches;

» Leapfroggingtothebestavailable,smart,moderndistributedrenewableenergysystemsthatenableatransitionthroughlowtozero-carbonfutures;

» Multi-stakeholderengagementalongwithsocialandenvironmentalsafeguardsasessentialelementsofsustainablesolutions;

» Strengtheningconduciveenvironmentsatalllevelstoenhanceprivateandpublicsectorengagement;and

» Promotingthetransferoftechnologyandknow-howandthedevelopmentofendogenouscapacitiesandtechnologies.

2 AREI Work Areas TheAREIispursuedthrough9distinctWorkAreasasoutlinedintheAREIActionPlan:

Mainactivities:1)MappingofexperiencesandactivitiesforenhancedcoordinationofexistingandfutureREinitiatives.2)Strengtheningpolicy,regulatory,supportandincentivesframeworks.3)Capacitymobilization/buildingacrossStakeholdersatallLevels.4)FundingandFinancing.5)Projectdevelopmentsupport

Cross-cuttingactivities:6)Socio-economicandenvironmentalassessmentsofREtechnologies.7)Multi-stakeholderengagement8)Widercontextmonitoringandassessmentobservatory.9)CommunicationsandOutreach.

3 AREI modes of operation InaccordancewiththeAREIFrameworkandGoverningInstrument,AREIisexpectedto1:

» PursueallAREIcoreandcross-cuttingactivitiesthroughitsIndependentDeliveryUnit(‘IDU’)(orangeboxbelow)

» DisseminatefundsinresponsetoAfrica-drivenproposals2forAREIeligibleprojectsandprogrammestobefundedthroughtheAREITrustFundthatmeetthecriteriapresentedinthisdocument(yellowboxbelow).

» SupportprojectsandprogrammespursueddirectlybyAfricancountries,internationalpartnersorinstitutionsandfinancialchannelsotherthantheIDUorTrustFund,thatmeettheAREIattributioncriteriaaspresentedinthisdocument(whiteboxesbelow).

Figure1:AREIactivitytypes.FromAREIFramework,p.20.

1 See AREI Framework, p 23 and 38. 2 These may be proposed by African countries, civil society, private sector actors and other institutions.

3 Approved AREI Criteria

4 AREI Methodology for Assessment, Prioritization and Approval of Programmes and Projects

ThisdocumentseekstoprovideoverallguidanceandsubstantiatecorevaluesandprinciplesofAREIasabasisforspecificmethodologiesandoperationalpracticestobeformulatedandapplied. AREIpursuesgoalsfortransformationalchangetowardsuniversalenergyaccessandrenewableenergyacrossAfrica.TheAREIFrameworkandActionPlanthereforehighlightstheprimaryimportanceofsupportforcountry-widepoliciesandprogrammes,incentivesandregulatoryreformsthatcanenableaflourishingofnewprojectsontheground(CategoryAbelow).Inadditionandcomplementarytothis,AREIalsorecognisesarolefordirectprojectsupportforindividualrenewableenergyinstallationsandenhancedcapacitybydevelopersandinvestorsasasetofcomplementaryactivities(CategoryBbelow).AREIwillneedtoensurethereisreasonablebalanceintermsofwhoreceivesfunds,whatrenewableenergytechnologiesarepromoted,ratiobetweenon-gridandoff-gridsupportandmanyothervariables,inaccordancewiththeAREIFramework.CriteriaforensuringsuchbalanceispresentedinPartC.Thesecriteriaprovideabasisforelaborationofoperationalpracticesbothintermsofattributionandassessment/approvaloffundingfromtheAREITrustFund.Thesespecificoperationalpractices,toberegulatedinseparatedocuments,willoutlinethemethodologyandroleandinformationflowbetweenprojectproponents,theIDU,theTechnicalCommitteeandtheBoard.TheywillfurthermoreneedtoensuretheproceduresaredesignedtoprovidemaximumefficiencywhileensuringadherencetoAREIprinciples.Thesewillalsoneedtodealwithissuesaroundconfidentialityandhowtodrawontheassessmentsthatarealreadypursuedbypartners,e.g.harmonizationandsynchronisationofsocialandenvironmentalsafeguards.

4 Approved AREI Criteria

Part A: Criteria to be considered for Attributing and Funding Policy Development Projects and Programmes/Incentives under AREI (Category A) Thefollowingcriteriashallguideassessmentsforbotha)attribution(i.e.whetheranactivitydirectlypursuedandfundedbycountriesandotherinstitutionscanbelabelled‘AREIcontribution’)andb)eligibilityandprioritizationoffundingthroughAREI.A. Eligible implementing organizations for Category A projects AREIpolicydevelopmentprojectsandimplementationofpolicyprogrammes/incentivesschemeswillbemainlypursuedbyorinclosecooperationwithAfricangovernments.Avarietyofactorscanbeactivelycontributingtotheimplementationofsuchactivities:

▪ AfricanGovernmentInstitutionsandAgencies(regional,nationalandsub-national)

§ Internationalorganizations,developmentagenciesandbanks

▪ CivilSocietyandNon-GovernmentalOrganizations

▪ Public-privatepartnerships ▪ Publicinterestandresearchinstitutions

§ Consultantfirms

B. Eligible recipients of AREI Trust Fund support for Category A projects MainlyAfricanentities(Africancountries,civilsociety,privatesectoractorsandotherinstitutions)willbeeligibleforreceivingfinancialsupportthroughtheAREITrustFund.ThedetailedprovisionsforeligibilitywillberegulatedinthespeciallegalprovisionsregulatingtheTrustFund(underdevelopment).Thissectionwillbeupdatedtoreflecttheseprovisionswhenfinalised.C. Essential requirements Allofthefollowingessentialrequirements3mustbemetforapolicydevelopmentproject/policyprogrammeorincentivetobeeligibleasAREIcompliantforattributionandeligibleforconsiderationofAREITrustFundsupport.

o Location:theprojectshouldbelocatedinAfricaandinlinewiththehostgovernment(s)/region’sorcontinentalprioritiesandwithnoobjectionsfromothercountriesimpactedandconcerned,particularlyinthecasewheretheprojecthastrans-boundaryimpacts.

o Purpose:theprojectmusthaveaclearlydefined,anddemonstrablepublicbenefitfortheenergypoor.

o Technology:theprojectmusthaveanexplicitrenewableenergyfocusandcannotpromotefossilfuelsornuclearenergy.

o Socio-economicandenvironmentalimpacts:internationallyaccepted,andwhenapplicable,AREIspecificsocialandenvironmentalsafeguardsmusthavebeensuccessfullyappliedwiththoroughandparticipatoryanalysisofpossibleadverseimpactsconcludingtheseareminimalornon-existent.Project-impactedcountriesandcommunitieshavepriorandinformedconsent,aswellastheopportunitytoparticipatethroughoutfromplanningthroughimplementation.

o Policyimpacts:Thepolicydevelopmentproject/policyprogrammeincludestakeholderinvolvementandforeseesocio-economic,environmental,genderand/orotherdevelopmentco-benefits.

o Additionality:thepolicydevelopmentproject/policyprogrammeorincentiveisenabledthroughadditionaleffortsandwouldnothavehappenedotherwise.

3 These requirements will be updated for proposals to be submitted during the period 2020 - 2030

5 Approved AREI Criteria

D. Menu of AREI policy development/programme support options ● Definitions:Apolicydevelopmentproject4referstoanygovernanceinterventionthathasaclear

beginning,adevelopmentphaseandanend.Supportforpolicyprogrammesandincentivesrefertoexecutionandfundingofalreadydevelopedpolicyframeworkssuchasforexampleincentivesschemes,paymentguarantees/feed-intariffsandon-goingcapacitybuilding.InAREI,asuccessfulpolicydevelopmentproject/policyprogrammeorincentiveisonethattakesaholisticapproachandcontributestotheobjectivesandoutcomesenvisagedparticularlyunderWorkAreas2,3,4,6and7(particularlycombinationsofthese)oftheActionPlan.

● Types:Policydevelopmentprojects/policyprogrammesandincentivestobeattributed/supportedunderAREImustincludeoneormoreofthefollowingpolicytypes(andmayrangefromdevelopmentanddesigntoimplementationphases):

o Economicinstruments:incentivesandde-riskingmeasuressuchasguaranteesandfeed-intariffs,redirectionofsubsidies,procurementetc.5

o RegulatoryandLegalInstruments6 o CapacityBuilding7 o Informationandeducation8 o Publicfundingofmeaningfultechnologyresearch,development&deployment9 o Environmentalimpact,technologyandriskassessments,genderpolicies,socialand

environmentalsafeguardsandpublicparticipation10 o Coordinationofon-going/plannedREprojects11

E. Eligible phases of the policy development project/programmes AREIcompliantpolicydevelopmentprojects/programmescancover,andreceivesupport,foroneorseveralofthefollowingdifferentphasesoftheprojectdevelopmentcycle:

● Development(includingpreparation):Situationalassessments,policyissueandimpactanalysis;policyformulationprocesses(includinglegaldrafting);legaldrafting,analysisofcostsandbenefitsofpolicyimplementation/administrationetc.

● Implementation:Directfinancingofincentives,off-takeandtariffguarantees(feed-intariffs),subsidies,institutionalandprogrammatic/policy-basedcapacitymobilizationandstrengtheningetc.

● Monitoringandevaluation:Designandimplementationofmonitoringandevaluationstudiesandfeedbacksystemsetc.

F. Proposal selection/prioritization criteria and indicators Indicativecriteriatobeconsideredwhenreviewingproposalsforpolicydevelopmentprojects/policyprogrammesandincentivesschemesarepresentedinAnnex1,togetherwithaninitialsetofindicatorsforconsiderationandfurtherelaborationwithmemberstates,theTechnicalCommitteeandtheIDU..Theseshallprovideabasisforassessmentofwhetherprojects/programmesmeetcriteriaforattribution,andprovideabasisforprioritisationoffundingfromtheAREITrustFund.

4 Source: IEA/IRENA Policies & Measures Database: http://www.iea.org/policiesandmeasures/renewableenergy/ 5 Including: Design and implementation of procurement rules for investments; fiscal/financial incentives (e.g. design and implementation of feed-in tariffs/guarantees/premiums), de-risking projects, phasing out of fossil fuel subsidies and redirection toward clean renewables. 6 Including: Codes and standards (building, product and sectoral); obligation schemes; other mandatory requirements), policies that clearly establish approval processes and land rights. 7 Including: Professional training courses; strategic planning, project development facilities. 8 Including: Information provision; public awareness campaigns. 9 Including: Innovation systems and transition studies; scenario studies; meaningful technology transfer studies. 10 Including: EIA policies; Technology assessment platforms, 11 This project type recognizes the existence of prior RE initiatives, and is aimed at assisting countries to design and implement effective rules/procedures for improved coordination among different RE efforts to ensure more efficient allocation of national and international resources.

6 Approved AREI Criteria

Part B: Criteria to be considered for Attributing and Funding Renewable Energy Installation Projects under AREI (Category B)

Thefollowingcriteriashallguideassessmentsforbothattribution(i.e.whetheranactivitycanbelabeled‘AREIcontribution’),andeligibilityandprioritizationoffundingthroughtheAREITrustFund,A. Eligible implementing organizations for Category B projects AREIcompliantrenewableenergyprojectsunderCategoryBneedtobeendorsedanddrivenbyAfricangovernmentsandotherAfricanactors.Avarietyofactorscanbeactivelyinvolvedinandcontributingtotheimplementationofsuchactivities,including

1. Africangovernmentinstitutionsandagencies(includinglocalgovernmentsandmunicipalities)

1. Non-GovernmentalOrganizationsandCivilSocietyOrganizations,includinglocalcooperativesandcommunityassociations

2. Private-publicpartnerships,publicandprivatesectorsupportinvestmentprogramsandprojects

3. Privatedevelopersandinvestors(including/representingindividuals/households,cooperatives,privateprojectdevelopers,domesticprivateandforeigncompanies,investmentfundsandfinancialinstitutions)

B. Eligible recipients of AREI Trust Fund support for Category B projects MainlyAfricanentities(Africancountries,civilsociety,privatesectoractorsandotherinstitutions)willbeeligibleforreceivingfinancialsupportthroughtheAREITrustFund.ThedetailedprovisionsforeligibilitywillberegulatedinthespeciallegalprovisionsregulatingtheTrustFund(underdevelopment).Thissectionwillbeupdatedtoreflecttheseprovisionswhenfinalised.

C. Essential requirements Allofthefollowingessentialrequirements12mustbemetforaprojecttobeeligibleasAREIcompliantforattributionandeligibleforconsiderationofAREITrustFundsupport:

● Location:theprojectshouldbelocatedinAfricaandinlinewiththehostgovernment(s)/region’sorcontinentalprioritiesandwithnoobjectionsfromothercountriesimpactedandconcerned,particularlyinthecaseofprojectswhichhavetrans-boundaryimpacts.

● Purpose:theprojectmusthaveaclearlydefined,anddemonstrablepublicbenefitfortheenergypoor.

● Technology:theprojectmusthaveanexplicitfocusonrenewableenergy,energyefficiencyorrenewableenergyrelevanttransmission/distribution,andcannotpromotefossilfuelsornuclearenergy.

● Socio-economicandenvironmentalimpacts:,Internationallyaccepted,andwhenapplicable,AREIspecificsocialandenvironmentalsafeguardsmusthavebeensuccessfullyappliedwiththoroughandparticipatoryanalysisofpossibleadverseimpactsconcludingtheseareminimalornon-existent.

● Meaningfulengagement:Theprojectincludesstakeholderinvolvement,includingbothwomenandmenandcivilsocietyandparticipation,andwhererequired,consentoflocalcommunitiesfromprojectconceptiontoimplementation.

● Localsocio-economic,environmentaland/orotherdevelopmentco-benefitsforeseen. ● Additionality:theprojectisenabledthroughadditionaleffortsandwouldnothavehappened

otherwiseand/ortheAREIsupported/attributedeffortscontributestothedeploymentandinstallationofadditionalREcapacityand/ortheAREIsupported/attributedeffortssignificantlyacceleratetheimplementation/deploymentofREcapacity.

12 These requirements will be updated for proposals to be submitted during the period 2020 - 2030

7 Approved AREI Criteria

Theymustfurthermoresatisfyatleastoneofthefollowingconditions:

● Increaseproductionofelectricityorusefulthermalenergyoranyotherrelevantformsofenergyfromrenewablesources.

● Strengthen/expandexistingnationalgridstoaccommodaterenewableenergytransmissionanddistribution.

● Build/strengthennano-,micro-andmini-gridsservingoff-gridneeds/markets.

● Improveenergyefficiencyandconservation. D. Eligible technologies ThefollowingtechnologiesmaybeconsideredforAREIattributionorfundingundertheAREITrustFund:

● Solarphotovoltaicandthermal

● Windpowergenerators(electricandnon-electric) ● Biomass

● Hydropower(inparticular,butnotlimitedto,pico-,micro-,small-andmedium-scale) ● Geothermal

● Marine ● Energystorageandgridtechnologies

● Energyefficientappliances ● Energytransmissionanddistribution

E. Eligible phases of the project development cycle

AREIcompliantrenewableenergyinstallationprojectscancover,andreceivesupport,foroneorseveralofthefollowingdifferentphasesoftheprojectdevelopmentcycle:

1. ProjectFormulation.Fundsaretobeusedforprojectdevelopmentcostsincludingbutnotlimitedto:

o Assessmentofphysicalandtechnicalavailabilityandcharacterizationofrenewableresources.

o (Pre-)FeasibilitystudiesacrossallcriterialistedunderSectionC,includingfinancialduediligence.

o Legalcostsforpreparationofdocumentationrelatedtoregulatoryrequirements,supplycontractsandotheragreements.

o Othertransactioncostsassociatedwithexpertconsultations,engineeringandotherservicesneededtransitionfromprojectconceptiontofinancialclose.

o Coststoconductsurveysoflocalhouseholdswithregardstotheirenergyneedsandusage,pricetheyarewilling/abletopay,etc.

2. Projectimplementation:Fundsaretobeusedforprojectimplementationcostsincludingbutnot

limitedto:

o Grantandconcessionalfinancetoenableinvestments(fromfullcoststomarginaltop-up). o Project-specificguaranteesandriskreductionmeasuresthroughtransitionalpaymentof

subsidies(e.g.asfeed-intariffs/guarantees/premiums).

3. ProjectFollow-up:Fundsmaybeusedforprojectfollow-upactivitiesincludingbutnotlimitedto:

o Monitoring,evaluationandfollow-upanalysisofprojectimplementationincludingtheenvironmentalandsocialimpactsoftheprojectandhelpguideandimprovefutureeffortsbydeveloperandothers.

8 Approved AREI Criteria

F. Criteria for consideration in assessment of relevance and prioritisation of proposals for funding Inadditiontotheessentialcriteriaabove,additionalindicativecriteriatobeconsideredwhenreviewingRenewableEnergyInstallationProjectsunderAREIarepresentedinAnnex2,togetherwithaninitialsetofindicatorsforconsiderationandfurtherelaborationwithmemberstates,technicalcommitteeandIDU.Projectsmustnotmeeteverycriteriainthislistandseveralmaynotbeapplicable.

Thelistofcriteriawillbeusedindifferentwaysfordifferentpurposes.ForprojectsseekingfundingfromtheAREITrustFund,thesecriteriawillbeusedbytheIDUandtheTechnicalCommitteeforassessmentandprioritisationofwhichprojectstofund.

ForprojectsfundedthroughexternalchannelsthatseekAREIattribution,thelistofcriteriashallhelpdeterminingiftheprojectsmeetsufficientrelevance/qualitytobedeemedAREIcompliant.ThecriteriafurthermoreservethepurposeofcommunicatingtheprioritiesofAREIandcanhelpallactorsdesignandenhancetheirprojectstobemaximallycompatiblewithAREI.

9 Approved AREI Criteria

Part C: Criteria to ensure overall balance of AREI activities and support InadditiontocriteriaproceduresasoutlinedinPartAandB,AREIneedstocontinuouslytakestockandevaluatetheoverallbalanceofsupportedactivities,andensurethisisinalignmentwithoverallAREIprinciplesandguidelines.Morespecifically,AREIwillneedtoregularlyassesstheAREIoverallportfolioofprogrammesandprojectstoensurethat,overtime,thereisanappropriatebalanceintermsofthecriterialistedbelow.AREIwillseektocorrectsuchimbalancesbycontinuousinteractionwithpartnerstoencouragetargetedinterventions,reprioritisationandstrengtheningofweakareas.TheAREITrustFundcandirectlyshiftitscurrentpriorities,andadjustitsfundingtofavourcertainkindsofprojects/programmesandputtingonholdothers,andlikewisepreferentiallytreatcountriesthatdisproportionallybenefittingfromAREI.AREIshallensurethereisbalanceovertimeinregardsto:.

1) Directlyenergyaccessorientedprojectsandprogrammes(withatleast70%ofallfundingand/orresultingnewgenerationcapacitydirectlytargeting/benefittinghouseholds,localagriculture,SMEs,servicedelivery,andotherlocalproductivesectors).

2) REinstallationsize(atleast60%ofallfundingand/orresultingnewgenerationcapacityoff-grid/minigrids).

3) Diversityofrenewableenergytechnologieswithduerespecttospecificnationalcircumstancesandtechnologyavailability.

4) Formsofownershipacrosscommunity,SMEs,domesticcompanies,municipalities,publicinstitutions,government,foreigncompaniesandinstitutionalinvestors,withatleast40%ofallprojectsdirectedtolocal/communityownership/management.

5) Spreadofprojectsandprogrammesacrosscountriesandsub-regions

6) Noonecountry(ies)receivingdisproportionateshareofprojects/programmesinrelationtopopulationsize,povertylevelsandotherrelevantvariables.

7) Nocountryleftbehind–particulareffortstosupportLDCsandcountrieswithmorelimitedcapacityandcapability.All54countriestobeactivelyinvolvedbythefirsthalfofPhase2(2020-2030).

8) PredominatelyAfricancountriesandinstitutionsreceivingsupport.

9) Afocusonfar-reaching,country-widepolicies,programmesandincentives(CategoryA)asnecessaryfortransformationandenergyinvestmentstoachievetheboldgoalsofAREI.

10 Approved AREI Criteria

ANNEX 1: Criteria to be considered when reviewing proposals for Category A policy development projects/policy programmes and incentives schemes

Criterion Indicator(s)(notanexhaustivelist)EnergyAccess ● Increaseinenergyaccess(e.g.intermsofquantity,quality,

reliability,health,safety)

● Potentialtoreachthosemostinneed

● Balancedbenefitsaccordingtogender

Climate ● Directmitigationpotentialfrompolicyimplementation

● Indirectmitigationpotential

● Adaptationbenefits

BusinessPlan/ImplementationStrategy

● Clearly-definedshorttomediumtermobjectives

● Clearly-defineddeliverablesandtimelines

● Clearly-definedimplementationpartners

Stakeholderinvolvement ● Opinionsandwhererequired,consentofaffectedpopulationgroup(s)

● Alignmentwiththeneeds/prioritiesofaffectedpopulation

● Effectivegendersensitiveparticipationandengagementofaffectedpopulationinthedesignandimplementationoftheprojects

● Robustprojectandinstitutionaltransparencytoenableindependentaccountability.

● Accesstocommunityredressmechanisms

Effectiveness ● Inducedgrowthinenergyaccess/vs.targets

● Inducedgrowthininstalledcapacity/productionvs.technicalpotential

● Realisticdeliverablesandaccompanyingresourcesandtimelines

● Clearlydefinedriskswhichcanimpactimplementationandtimeline(Political,Economic,Social,Technological,etc.)

Efficiency ● InvestmentLeverage

● Socialefficiencyinrelationtoeg.SDGandotherrelevantindicators

Equity ● Fairaccesstosupportpolicies

● AlignmentwithCommonbutDifferentiatedResponsibilityandclimatejustice

● Incidence/distributionofsupportcosts

● Changeinspendingonenergyas%oftotalhouseholdspending

● Benefittingpoorpeople

Institutionalfeasibility ● Policycomplexity(i.e.easeofimplementationandenforcement)

● Existence,capacityandtrack-recordofrequiredinstitutions,especiallyintheapplicationofenvironmentalandsocialsafeguards

● Clarityandappropriatenessofownershipandcommitment.

● Degreeoflocal/Africanexpertise

Transformativepotential ● Rateofdiffusion/marketpenetrationofinnovativeREenergyresourcesandconversiontechnologies.

● Replicability

● PotentialforacceleratedincreaseinnumbersofREinstallationprojectsbenefittingfromthescheme

11 Approved AREI Criteria

● PerformanceofRETInnovationsystems13

● Rateofincreasedenergyvalueinkeyservicedeliveryandproductivesectors,especiallysubsistenceandsmall-scaleagriculture,healthandeducation

● Attractivenessandlikelihoodforrapiduptakeelsewhere

● Long-termrelevanceforstructuralchangetowards100%renewableenergysocieties

Socio-economicandenvironmentalimpact

● Economicanddevelopmentbenefits(Jobcreation,Incomegeneration,etc.)

● Environmentalbenefits

● Socialbenefits(health,gender,education)

● AdverseSocio-economicandenvironmentalimpacts,especiallyonlocalcommunities

● Impactsonbio-diversitylossandlossofforestcoverage

● Particularimpactsoncountries,communities,indigenouspeoplesandvulnerablepopulations

● Risksandlevelofuncertaintyaroundsocio-economicandenvironmentalimpacts

● Irreversibility

Source:AdaptedfromIRENA,2012:17-18

13 This assesses transformative potential of a policy proposal from a systems perspective – examining the extent to which components of the proposed project/programme spur the creation or strengthening of the following core innovation system functions, namely: knowledge development; knowledge diffusion/exchange; guidance of the search; market formation; entrepreneurial activities; resource mobilization; and support from advocacy coalitions. Innovation system studies show that transformative potential is high where such functions are not only all present, but also interact in mutually reinforcing cycles.

12 Approved AREI Criteria

ANNEX 2: Criteria to be considered when reviewing proposals for Category B policy development projects/policy programmes and incentives schemes

a. EconomicandFinancial

i. Potentialtodeliverelectricityorheatorotherformsofenergydedicatedforproductiveusesinsmall/mediumsizedagriculture,manufacturing,andcommunityservicefacilities.

ii. Localjobcreationandretention,includingforbothmanagementpositionsaswellastechnicalpositionsfortheassemblyandmaintenanceofsystems

iii. Potentialtodriveeconomicdiversificationandgrowth(includinglocaleconomicdevelopment)

iv. Economicpaybackwithinreasonableperiodoftime(ifconcessionalloanratherthangrant)

v. Potentialtoleveragefundsforfurtherexpansion

vi. Potentialforenergymarkettransformation,innovationandcostsavings.

vii. Affordabilitytothemajorityoftheconsumers

viii. Co-financingagreements(thisfactorindicatescommitmenttofulfillingtheproject)

ix. Riskmitigationmeasures

x. Economicjustification

b. Social

i. Genderempowerment

ii. Engagementoflocalstakeholdersandcivilsociety

iii. Demonstrationofsocialacceptanceandlocalownership

iv. Energyequityenhancementandpromotionofenergydemocracy

v. Adherencetohumanrightsandrightsofindigenouspeoples

c. Environmental

i. Impactongreenhousegasemissions,includingcarbondioxideandmethane

ii. Impactsonlocalecosystemsandecosystemservices

iii. Impactsonlandtenureandotherlanduseimpacts

iv. RecyclabilityofREtechnology

v. Anyotherenvironmentalcriteriarequiredbyexistingnationalregulations/law

d. Institutional–Part1

i. Alignmentoftheprojectwiththeprioritiesofthehostcountry/region,andwithnoobjectionfromothercountriesimpactedandconcerned,particularlyiftheprojecthastrans-boundaryimpacts

ii. Synergywithsimilarongoing/plannedactivitiesinthecountry(inordertoavoidwastefulduplicationandconflicts,whilesupportinghealthydiverseofactorsandinterventions)

iii. Applicant’scurrentcapacity,andtrackrecordtosuccessfullycompletetheproject,especiallyinenvironmentalandsocialduediligence.

iv. Replicability

v. Sustainability

e. Institutional–Part2(Capacitymobilizationanddevelopment)

i. Detailedplanformobilizationofexistingcapacities

13 Approved AREI Criteria

ii. Detailedplan,includingrequiredresources,foradditionalcapacitydevelopment(toclosegapsidentifiedinsub-sectiond.iv)

f. Technical

i. Soundnessoftechnologicaldesign

ii. Robustnessandrisksoffailure/maintenancerequirements

iii. DegreeofcontributiontowardsenhanceddomesticorAfricanmanufacturing/assemblyofrenewableenergytechnologies

iv. Abilityofthegrid(mainand/orminigrids)toabsorbrenewableenergygenerationoutputandabsorbvariableenergy