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Mini-Grid

Community Engagement in Energy Projects

The importance of community engagement in UEF projects.

Written by
José Otárola-Silesky
Published on
November 26, 2024
https://universalenergyfacility.org/guide/community-engagement-in-energy-projects

Community Engagement in Energy Projects

Community engagement is a cornerstone of the Universal Energy Facility's approach to energy projects. Involving local communities ensures that projects are tailored to their specific needs and circumstances.

Strategies for Engagement

Effective community engagement strategies include:

  • Workshops and Training: Providing education on energy technologies and project benefits.
  • Feedback Mechanisms: Establishing channels for community input and suggestions.
  • Partnerships with Local Organizations: Collaborating with local NGOs and community groups to enhance outreach.

Outcomes of Engagement

When communities are actively involved in energy projects, the likelihood of success increases significantly. Engaged communities are more likely to support and maintain energy solutions, leading to long-term sustainability.

"Community involvement is essential for the success of energy initiatives."

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Frequently
Asked Questions

We put together a series of questions our team have received at different stages of the implementation of our programmes.

Still have a question?

Please reach out to us. We would be delighted to clarify any of your queries.

Mini-grids Programme

What types of mini-grid projects are eligible for funding under the UEF Mini-Grids Programme?

Mini-grid projects proposed by the applicants will be evaluated by the UEF to ensure they meet a minimum level of development in order to be eligible for a grant from the UEF. Pre-qualified applicants must be able to demonstrate that they have community, local government, and national government support for proposed projects, in the form of relevant licenses, permits, letters, and other documentation.

What generation technologies are eligible?

In the current Project Application Collections, only projects utilizing solar PV as their primary generation technology are eligible for funding. While diesel generators and other non-renewable backup power sources can be included in a project, they must not exceed 40% of power generation in any given fiscal quarter. Additional eligible generation technologies may be announced in future Project Application Collections.

Can we apply for multiple projects in different countries under the same application window?

Applicants can apply for multiple projects; however, each project must meet the eligibility criteria and be submitted within the specified application windows for the relevant countries.

How is the USD 592 per electricity connection verified and disbursed?

The grant disbursement of USD 592 per electricity connection is based on verified results. As part of the grantee’s claims report, the UEF performs remote connection verification through the UEF Platform. For remote verification, the UEF Platform enables grantees to verify the existence and consumption of every connection reported over a 30-day period through smart meters built in as part of each connection. In addition to remote verification of connections, the UEF Programme Manager conducts random on-site verifications to ensure grantees are in compliance with agreed standards and other terms. The UEF Programme Manager verifies the deployments and connections, and payments are made upon final approval.

Does UEF provide pre-financing for projects?

No, the UEF does not provide pre-financing for projects. The programme disburses grant payments based on a results-based incentive model, where payments are made only after verified and approved milestones by the UEF Programme Manager. The UEF provides direct grant payments on a “results-based” basis to grantees, upon the satisfaction of three milestones: (1) Proof of delivery of the major project equipment to the approved project site; (2) Successful commissioning of the mini-grid; and (3)Submission of claims report which cover connections established by the grantee and verification of connections which meet technical standards and provide stable power supply for at least 30 days after commissioning. Applicants must demonstrate sufficient financial resources to develop, construct, commission, and operate their mini-grid projects independently before receiving any grant disbursements.

SSPU Programme

How do will the UEF certify the CAPEX cost?

CAPEX is determined by the actual cost incurred by the applicant to purchase the hardware components. Applicants shall be required to provide evidence of the Landing costs (for imported systems), or the Invoiced prices (for systems sourced locally), including payment receipts in the Claims Report stage of the UEF process.

Are DC solar systems eligible for the UEF SSPU programme

Yes, DC systems larger than 100W and capable of powering productive use appliances are eligible.

Is there a substitute for the ‘cashin- bank' requirement? Can a letter of financial commitment or asset financing agreement with OEM be used in place of available cash balance?

No, there is no substitute for the ‘cash-inbank' requirement.

Where applicable, applicants may in addition also submit a binding letter of financial commitment from financiers or an asset financing agreement with OEM.

What are the timelines for payment of the subsidies?

The 30% Installation Payment will be paid at least 30 business days after deployment and verification of Claims.

The 10% Sustainability Payment will be paid at the end of the Grant Agreement period.

If a company is Pre-qualified for the UEF programme can the same company do a Joint Venture with another company?

Once Pre-qualified, any changes to the approved Company Structure after being pre-qualified must seek further approval from the UEF Advisory Board.

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