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Establishment of a National Grid Code and Development of Standards, Funding and Incentive Strategy for Renewable Energy (RE) Projects in Mauritius
Establishment of a National Grid Code and Development of Standards, Funding and Incentive Strategy for Renewable Energy (RE) Projects in Mauritius
Project Background
The Mauritius Renewable Energy Agency (MARENA) is a body corporate wholly owned by the Government of Mauritius which operates under the aegis of the Ministry of Energy and Public Utilities and is regulated by the MARENA Act of 2015. MARENA is responsible to promote renewable energy and create an environment conducive to the development of renewable energy.
MARENA currently benefits from two major consultancy projects (April 2019 - June 2020), namely:
UNDP-Green Climate Fund (GCF) on “Accelerating the Transformational Shift to a Low Carbon Economy in the Republic of Mauritius”; and
SADC- Project Preparation and Development Facility (PPDF) on “Development of Guidelines and Standards for RE Projects and a Funding and Incentive Strategy in Mauritius”.
These projects are aimed at enabling the Government of Mauritius to meet its target of using renewables to supply 35 percent of the country’s energy needs by 2025. This is part of a broad national strategy to reduce the country’s dependence on fossil fuels – to enhance energy security and climate change mitigation, and to improve the country’s balance of payments.
It was deemed necessary to opt for a co-financed model for addressing overlapping interests and avoiding duplication. In this spirit, the project “Establishment of a National Grid Code and Development of Standards, Funding and Incentive Strategy for Renewable Energy (RE) Projects in Mauritius” has been developed and a single procurement exercise, with MARENA as Client, was undertaken by Development Bank of Southern Africa (SADC) with co-financing from UNDP-GCF.
UNDP-GCF on “Accelerating the Transformational Shift to a Low Carbon Economy in the Republic of Mauritius”
The Green Climate Fund is funding this project to the tune of US$ 28.21 million of grant resources, split between phase 1 (2017 to 2020) and phase 2 (2021 to 2025).
The objective of the project is to remove bottlenecks to deployment and scale-up of renewable energy in Mauritius. The Project comprises the following three components:
Component 1: Institutional strengthening for renewable energy
Component 2: Improving Grid Absorption Capacity followed by PV deployment
Component 3: PV mini-grids on the Outer Island of Agalega
One of the major external assistance to MARENA’s operation and activities under this project is Component 1 of this project which directly pertains to the Agency. It covers the period 2017-2020 with a GCF finance of US$ 800,000 and a co-financing of US$ 1.08 million.
Under Component 1, the Ministry of Energy and Public Utilities (MEPU) will receive the necessary assistance to develop a fit-for-purpose legal and regulatory framework to allow the ambitious scale-up of renewable energy in Mauritius. Funding will be used to develop a staffing plan/structure for MARENA that is aligned with the needs of the Long-Term Energy Strategy. MARENA will be empowered and fully operationalised to assist renewable energy (RE) investors, particularly Independent Power Producers (IPPs), in reducing the transaction costs and time delays currently associated with RE investments. MARENA will also provide technical oversight and policy planning support.
SADC Project Preparation and Development Facility (SADC-PPDF)
For the project entitled ‘Development of Guidelines and Standards for RE Projects and a Funding and Incentive Strategy in Mauritius’, the SADC Project Preparation and Development Facility (KfW German-state owned Development Bank through the Development Bank of South Africa- DBSA) provides for a grant of USD 500,000, together with a 5% co-financing of USD 25,000 from MARENA. The proposal comprises the following:
Component 1: Developing guidelines for assessment and approval of renewable energy technologies
Component 2: Assessment and development of incentive scheme for deployment of RE
Component 3: Development of funding strategies and schemes
Component 4: Developing a framework for green jobs
Component 5: Conduct a macro-economic study for RE
UNDP-GCF/SADC-PPDF Co-financed Project
In the context of this project, the services of the Grupo Mercados Energeticos Consultores of Uruguay have been competitively selected to provide consultancy service for the Establishment of a National Grid Code and Development of Standards, Funding and Incentive Strategy for Renewable Energy (RE) Projects in Mauritius.
The team of consultants will have the following four (4) main objectives:
The development of institutional mapping, grid codes, guidelines, norms and standards, tariff guidelines and methodology for RE projects in Mauritius;
The assessment and development of incentive scheme for deployment of RE projects in Mauritius;
The development of funding strategies and schemes for RE projects in Mauritius; and
The development of a framework for Green jobs in the RE sector in Mauritius.
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