The World Bank Report No: ISR10417 Implementation Status & Results South Africa Renewable Energy Market Transformation (P073322) Public Disclosure Copy Operation Name: Renewable Energy Market Transformation (P073322) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 08-Jun-2013 Country: South Africa Approval FY: 2007 Product Line: Global Environment Project Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 28-Jun-2007 Original Closing Date 30-Sep-2011 Planned Mid Term Review Date 30-Jun-2011 Last Archived ISR Date 14-Nov-2012 Effectiveness Date 26-Sep-2008 Revised Closing Date 30-Sep-2013 Actual Mid Term Review Date 23-May-2011 Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The project's renewable energy objective, in line with GEF Operational Program 6, is to remove the barriers to, and reduce the implementation costs of, renewable energy technologies to help mitigate greenhouse gas emissions. The specific priority is CC-3 Power sector regulatory frameworks and policies for grid-based renewable energy. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Renewable energy power generation 4.40 Solar water heaters 1.60 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The renewable energy objective of the REMT Project, in line with GEF Operational Program 6, is to remove the barriers, and to reduce the implementation costs of renewable energy technologies to help mitigate greenhouse gas emissions. REMT has provided significant inputs to policy and regulatory guidance issued by the Government of Republic of South Africa on renewable energy, including the review of the initial Renewable energy Feed-in Tariff (REFIT) procurement and related standardized power purchase agreement (PPA), socio-economic study related to the implementation of the Page 1 of 4 The World Bank Report No: ISR10417 Integrated Resource Plan (IRP2010), as well as the development of the National Solar Water Heating Framework (NSWHF) and draft Renewable Energy White Paper (REWP), and valuable inputs to the IRP process and the Independent Systems Market Operating Bill. These have provided the policy and regulatory framework which have helped implement the country's renewable energy program. Public Disclosure Copy REMT continues to support DoE and the Government in implementing the Renewable Energy IPP procurement program, which has made a strong start toward procuring over 3,625 MW of renewable energy capacity, with strong response, especially in the category of Concentrated Solar Projects (CSP) and Wind. In parallel, Solar Water Heating initiatives implemented in South Africa have so far resulted in over over 50,000 high pressure and over 200,000 low pressure installations supported by Eskom and DoE, which have reduced approximately 60 MW of peak demand and about 323 GWh of annual energy reduction, resulting in an outcome of annual GHG emissions reductions of over 300,000 tonnes from the SWH component alone. The REMT project has completed five rounds of Matching Grant selection in order to support feasibility and pre-feasibility studies of renewable energy projects, including solar, wind and biomass as well as solar water heating (SWH). Contracting for Round Five of the Matching Grants program is in the final stage of process of finalizing contractual obligations in May 2013. The project encountered some challenges, notably internal restructuring at the DBSA, and the departure of the experienced project coordinator, which resulted in the delay of certain activities. The matter has since been addressed by the DBSA appointing a Program Manager and an Energy Specialist to ensure continued service by the ISU. With the conclusion of the Round Five matching grants, the REMT MG contractual commitments now stand at approximately ZAR 19.6 million. Recognizing the value that REMT has been bringing to the renewable energy development in South Africa, the Department of Energy of South Africa (DoE) has contributed ZAR 7.4 million as co-financing to the REMT project, which has created a level of continuity and sustainability for the Project. A series of workshops in renewable energy, such as SWH and Concentrating Solar Power (CSP) have been organized, and the REMT website has been established as a renewable energy resource information dissemination platform. Locations Country First Administrative Division Location Planned Actual South Africa Not Entered Pretoria South Africa Not Entered Johannesburg South Africa Not Entered Cape Town Results Global Environmental Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Policy and Regulatory framework developed Text Value No national policy on Policy guidance to support Continued policy support to and submitted for government approval renewables or SWH beyond and launch procurement of announce final stage of aspirational White Paper renewable IPPs Renewable IPP procurement (2003) program Date 07-Dec-2011 30-Sep-2013 Comments Page 2 of 4 The World Bank Report No: ISR10417 an established solar water heater industry Text Value 40. Solar water heater Significant progress with over Policy support to expand industry has two barriers: high 60,000 high pressure and capacity of local SWH costs and limited industry over 200,000 low pressure industry and help establish a capacity. There were a systems have been deployed local SWH supply chain Public Disclosure Copy virtually non-existent SWH installations in place. Date 30-Jun-2007 08-Feb-2013 30-Sep-2013 Comments CO2 emission reduced or avoided Text Value 0 300,000 tonnes annually from Cumulative outcome of 0.50 SWH million tons from SWH Date 30-Jun-2007 01-Mar-2013 30-Sep-2013 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target No. of developers asissted Text Value 1 or 2 renewable energy 10-14 supported by project 10-14 directly from project. projects by private developers matching grants. Policy that Outcome of 80-100 IPP led to Renewable IPP has project developers supported attracted well over 70 project by REFIT policy and IPP developers Procurement Program of project Date 30-Jun-2007 15-Nov-2012 30-Sep-2013 Comments No. of solar water heaters installed Text Value 40 Significant progress with over 200 60,000 high pressure and over 200,000 low pressure systems have been deployed through national programs Date 30-Jun-2007 23-Dec-2011 31-Dec-2012 Comments In progress Public Disclosure Copy Data on Financial Performance (as of 20-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P073322 TF-91191 Effective 10-Apr-2008 10-Apr-2008 26-Sep-2008 30-Sep-2011 30-Sep-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 3 of 4 The World Bank Report No: ISR10417 P073322 TF-91191 Effective USD 6.00 6.00 0.00 4.65 1.35 77.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Project was successfully restructured extending the project closing date to September 30, 2013 Restructuring History Level two Approved on 26-Sep-2011 Related Projects There are no related projects. 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