Key focus areas of the Program in the coming year 2015

Although significant progress has been made on key risks and barriers to the Program’s implementation throughout 2014, challenges remain. In order to achieve the overarching GET FiT targets, which are fully dependent on installed renewable energy generating capacity (MW) and the resulting annual energy production (GWh), a range of issues still require intense follow-up. Certain matters have emerged as particularly important over the past year; support to grid infrastructure investments and related TA support to ERA, must be urgently secured in order to ensure adequate grid integration for several GET FiT projects;  dedicated efforts are required by most developers to increase their quality on Environmental & Social impact assessments and to ensure satisfactory compliance with IFC Performance Standards; arising regulatory or political challenges such as tax reforms or cross-border issues must be followed up to the extent possible and; progress on PPA and IA negotiations for approved projects needs to be continuously facilitated and encouraged, in order to avoid further delays in reaching financial close and construction start.  

In addition to the above, some risks remain outside our sphere of control or influence, particularly critical with respect to achievement of Program targets are; the exchange rate risk and its potential impact on available funds for RfP Round 3 in USD terms and; the quality and progress of RfP Round 3 applicant projects. 

It will be vital to ensure progress for the coming year, in order to maximize the economic benefits and achieving the time-bound targets of the Program. Key focus areas in 2015 will be:

  1. Continued facilitation of dialogue, coordination and concrete solutions to the challenge of interconnection and integration of the GET FiT portfolio into the national grid, and eventually monitoring of the implementation phase for grid infrastructure investments. 
  2. Intensification of supervision visits and follow-up of projects starting or nearing construction start
  3. Follow up preparation and construction phase for solar PV projects.
  4. Facilitating progress on existing portfolio, in dialogue with developers and authorities, including signing of remaining DFAs and following up of conditions precedents for each project.
  5. Conclusion of a highly competitive and successful GET FiT RFP Round 3.
  6. Support to UETCL, ERA and GoU in the finalization of PPA and IA for bagasse and biomass as well as solar projects.
  7. To the degree possible, continue facilitating IA and PPA negotiations for individual projects.
  8. Follow-up the implementation of the various Technical Assistance Facility components, including the up-coming REFiT review and proposed additional TA support components to ERA.
  9. Preparation of commissioning reports for the bagasse plants, assuming progress as planned.
  10. Selection of an independent consultant to conduct Performance Reviews and Evaluation of Program.

As indicated throughout this report, only dedicated efforts by all key stakeholders can ensure a successful 2015 with continued progress and most importantly; projects breaking ground.