ASCENT Project

Component 1: Distributed Renewable Energy (DRE) with Solar PV (SPV) and Battery Energy Storage Systems (BESS) in the capital city of Mogadishu and other major load centers in the Federal Members States (FMS). This is proposed to include design, supply and installation of a total of about 50MW SPV grid connected generation plants with BESS in the Mogadishu capital area and other selected major load centers in the FMS. About 30-50 MW will be distributed across multiple sites and feed into mini grids. The integration of renewable energy sources and energy storage solutions are to improve the overall performance of the existing mini-grids thereby reducing reliance on fossil fuels and increasing the reliability and affordability of electricity supply. The installed equipment will be operated and maintained by the private sector operators (ESPs) with the project funds will be used to buy-down capital costs so as to lower the costs of supply. Based on the discussions, it is estimated that the project will contribute to lowering the cost (current average estimated at about US₵60/KWh) to about US₵25-35/KWh.

Component 2: Electricity Distribution Network Rehabilitation and Reinforcement of the mini grids serving the Mogadishu capital city area and other FMS major load centers. The activities under this component are aimed at supporting to reduce network losses (both technical and commercial) and increase the network’s capacity to connect new customers. It will also include activities to address last mile connection barriers to access especially for the low-income households. The activities under this component are proposed to include: (i) supply of equipment and materials for the distribution network Medium-voltage (MV) and Low-voltage (LV)), metering equipment and service connections and (ii) installation services including detailed line surveys. The scope of this component will be informed by the ongoing distribution network options analysis which is expected to be completed by October 30th, 2023. Component 1 will also be supported by funds from the Somalia portion of GCF funding under Sustainable Renewables Risk Mitigation Initiative (SRMI) including (i) Transaction Advisory Services and Technical Assistance and (ii) Risk mitigation instrument for mini-grid to leverage ESPs private capital.

Component 3: Sector Capacity and Institution Enhancement and Project Implementation Support. The activities under this component are proposed to enhance and build on the on-ongoing ESRP activities that among others include: (i) Policy and Regulatory development; (ii) Sector Planning and Feasibility Studies for Renewable Energy Projects; (iii) ESP and MOEWR Capacity and Business Support Services; (iv) Implementation of the project’s Gender Action Plan which included gender capacity building for ESPs; and (v) Project Implementation Support including for environment and social safeguards. Key activities will among others include preparation studies for national electrification plan, including identification of actions to enhance the enabling environment for private sector investments. Sector enhancement activities will include support to operationalize the ESI, sector planning and operational capacity. The component will also support activities to build the capacity of FMS who have a key role in the country’s energy sector development. The capacity needs assessment for the FMS is underway and will inform the priority areas for capacity building support. A detailed capacity enhancement plan will be developed to ensure the staff of MoEWR, and other stakeholder institutions are trained to undertake core sector activities and thus reduce the continued reliance on consultants.