The World Bank Report No: ISR6813 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: 10 Status: ARCHIVED Archive Date: 14-Nov-2012 Country: South Africa Approval FY: 2007 Product Line: Global Environment Project Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): DEPARTMENT OF MINERALS AND ENERGY, Development Bank of Southern Africa (DBSA) 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 11-Jan-2012 Effectiveness Date 26-Sep-2008 Revised Closing Date 31-Dec-2012 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 Low Implementation Status Overview The project’s renewable energy objective, 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: ISR6813 Integrated Resource Plan (IRP2010), as well as the development of the National Solar Water Heating Framework (NSWHF) and draft Renewable Energy White Paper (REWP). In order to provide DoE with the “real time� support, the REMT has procured in some cases, or is in process of procuring in other cases, specialists in the areas of solar energy, wind energy, project finance, and related legal/regulatory issues. Public Disclosure Copy The implementation of Matching Grants and Performance Grants has continued to demonstrate progress. The Program has completed four 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). After consultation with key stakeholders such as DoE, Eskom, Sustainable Energy Society of SA, Association of Energy Service Companies, and Economic Development Department of EDD, the launch of an additional fifth round of MG selection took place in May to ensure the resources under the MG are fully utilized. The Round Five MG outcome, with selections expected to be completed between July to December 2012, will lift the REMT MG contractual commitments to approximately ZAR17.24 million. Recognizing the significant support 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 REMT project. This support 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 was well established as an important 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 Indicator Name Core Unit of Measure Baseline Current End Target Policy and Regulatory framework developed Text Value and submitted for government approval Date 07-Dec-2011 28-Dec-2012 Comments Public Disclosure Copy an established solar water heater industry Text Value Solar water heater industry This project will build capacity has two barriers: high costs of local SWH industry and and limited industry capacity help establish a local SWH supply chain Date 30-Jun-2007 06-Dec-2011 21-Dec-2012 Comments CO2 emission reduced or avoided Text Value 0 0.75 million tons from SWH Date 30-Jun-2007 06-Dec-2011 30-Sep-2011 Comments Page 2 of 4 The World Bank Report No: ISR6813 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target No. of developers asissted Text Value Very few renewable energy 10-14 Public Disclosure Copy projects by private developers Date 30-Jun-2007 06-Dec-2011 28-Dec-2012 Comments No. of solar water heaters installed Text Value 40 200 Date 30-Jun-2007 23-Dec-2011 31-Dec-2012 Comments In progress Data on Financial Performance (as of 10-Oct-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 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P073322 TF-91191 Effective USD 6.00 6.00 0.00 4.65 1.35 77.00 Disbursement Graph Public Disclosure Copy Page 3 of 4 The World Bank Report No: ISR6813 Key Decisions Regarding Implementation The maximum threshold for SWH Matching Grants was revised from USD50 000-00 to USD100 000-00 in May 2012. This was designed to increase interest in the market, noting that the remaining budget allocated to this category is ZAR 5.8 million. In addition, the Government has requested an extension to the term of the grant by an additional nine months. Public Disclosure Copy Restructuring History Level two Approved on 26-Sep-2011 Related Projects There are no related projects. Public Disclosure Copy Page 4 of 4