Renewable Energy Project

Stage I Preliminary Selection of COs

In order to create the energy service demand from communities, social mobilization is conducted in all REP districts. The social mobilization aims to explain the principles of the Renewable energy project: energy service provision, PV systems for social service and income generation, rather than electrification of individual households, expected tariffs, etc.
The REP designed a set of quantifiable criteria for evaluation of the COs, such as track record of past operations, existing demand on solar energy for social services/income generation etc. Based on the information provided by various district level stakeholders, 50 COs per district are identified for further processing. The REP is not grooming its own cooperatives/COs, but is looking for existing community based organisations, most of which were created with the assistance of other donor-supported projects, such as MEDEP, REAP, DLGSP, etc.

Stage II Information Campaign and Grading of COs

The project organises a two-day workshop in all REP selected districts. Through these workshops REP provides project information focusing on the concept of CESP and collects the applications from the interested / eligible COs identified earlier. Through this event, district level officials of government/non-government/international non government organizations, local authorities representatives, CBOs/COs formed under various development programs are provided with the REP information. The interested CO will fill up the application forms and submit to REP representatives. Based on the information provided in CO application, REP further evaluates the CO and top 20 will be shortlisted for field verification. Finally, maximum 10 COs will be selected for energy demand collection. To explain the energy service provision, concept and application process for the assistance from the REP, the REP conducts meetings and public hearings

Stage III Demand Collection, Feasibility Study and Design

Through the community meetings in all selected village/communities in each district, the project provides all required information on energy service provision to all eligible CO and asks them to collect the Energy Demand Form from end use institutions. REP will conduct the basic feasibility studies for all applications received by the COs. The final approval for the implementation of the CESP project depends on the technical and financial feasibility study report. REP will do the detailed design for all feasible applications. The Team prepares standardized packages (e.g. school with one computer and 5 bulbs will have a package A, school with 2 computers, printer and 10 bulbs will have a package B, etc.) for a set of most probable end-uses.
To select the best CESP projects for implementation within the existing budget, the CESP has to go through the process of consolidation. In the event that the demand exceeds the budget, the REP will elaborate an additional set of rating criteria to be approved by the Executing Agency and all COs (or applications within the COs) will be rated against these criteria in order to finalise the list of PV equipment to be procured.

Stage IV procurement of solar equipment

The tendering process begins with the preparation of Technical Specifications. These will be prepared by the REP on basis of the designs prepared previously. The technical specifications provides for the delivery of PV systems to site locations, their installation, 1-year warranty of the whole system and basic operation and maintenance training. The technical specifications will consists of: General specifications for all components of a PV system, such as PV modules, inverters, wiring, as per best international practice and Nepali standards, plus CESP specific requirements. The CESP specific requirements include such information as bill of quantities for all PV systems on that location, location map, delivery time, etc.
The PV equipment will be purchased through International Open Tender procedure. The tender dossier for PV systems will be a single tender for EUR 10 mill divided into lots as per specifications ensuring that the installation of PV systems within regions is completed successfully and within limited time.

Stage V Transformation of COs into CESPs

Concurrently with the procurement of the PV systems, the REP and the European Commission will contract out the capacity building activities to local NGOs, institutions, and other eligible entities. The capacity building will consist of theoretical and practical parts, with the objective of empowering the COs and preparing all necessary documents / guidelines / manuals to allow for successful start up of operations. The topics covered by the capacity building will range from operation & management, maintenance, environmental management to financial management and tariff setting

The capacity building activities mainly focuses in the following areas

Technical capability required to operation, repair and maintain the solar energy systems
Financial and managerial capability required to manage the energy service delivery and associated administrative matters, setting appropriate energy tariff and management of the fund
Business capability required to develop and promote decentralized energy service provisions as competitive business entity at local level.

Stage VI Installation and commissioning of solar equipment

Installation of solar equipment in specified location is the responsibility of supplier. In order to ensure the quality of equipment, REP will monitor and ensure the high quality of equipment as well as the standard of installation.

Stage VII Ownership Transfer

The transfer of ownership to the CESP will be made at the earliest after the provisional acceptance and on condition that the CESPs have been legally established by that date. The process completes with signing of an “Ownership Transfer Agreement” by the project on behalf of EU and CESP representative. After completing the process, the responsibility to operate and maintaining the system solely goes to the CESP.