END OF PROJECT REPORT

Grid-Connected Rooftop Photovoltaic Systems Project (PV Project)

UNDAF Outcome(s): N/A

Expected CP Outcome(s):

CP Outcome Indicator: UN Country Programme 2012-2016 – Country Programme Outcome #2: By 2016, the
governance systems, use of technologies and practices and financing mechanisms
that promote environmental, energy and climate-change adaptation have been
mainstreamed into national development plans.

Executing Agency: Seychelles Energy Commission (SEC)

Implementing partners: United Nations Development Programme

Other Partners: Ministry of Environment, Energy & Climate Change (MEECC), Public Utilities
Company (PUC), Development Bank Seychelles (DBS), Ministry of Finance Trace
and Bleu Economy (MFTBE), Seychelles Island Foundation (SIF), Sustainability for
Seychelles (S4S), Ministry of Education – Eco-School program

Project Summary

The Seychelles is approximately 98% dependent on imported oil to meet its energy needs, including electricity production. The
objective of the proposed project is to increase the use of grid-connected photovoltaic (PV) systems as a sustainable means of
generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-scale producers who
are already connected to the national electricity grid. The project will revise the legal, regulatory and policy framework to better
support the adoption of renewable energy technologies, and grid-connected PV systems in particular; design and implement
financial mechanisms that will make the purchase and installation of solar PV systems more attractive to the private sector;
establish the first market supply chain for solar PV systems in the country; provide training to establish local capacity for the
installation and maintenance of PV systems; and demonstrate for the first time in the Seychelles the viability and practicality of
grid-connected PV systems through demonstration PV systems. Together, these actions are designed to play a critical role in
“jump-starting” the adoption of solar PV technology in the Seychelles, and in setting the stage for broad-scale replication by
reducing the costs of PV technology through a market-based approach that will establish financial incentive mechanisms for
PV systems and reduce transaction costs (by creating a reliable supply chain and establishing local capacity for installation
and maintenance). In this way, the project is designed to transform an energy sector that today is almost 100% dependent on
imported fossil fuels into one where solar PV and other RETs provide a significant percentage of national energy production
going forward. .

Programme Period: 2012-2016 Total project funds for the USD xx

Programme Component:
Intervention Title:
UNDP Project ID:
Duration:
xxx whole period:
Grid-Connected Rooftop
Photovoltaic Systems Project Allocated GEF resources: USD 1,160,000
4331
4 Years (+6 month no-cost Co-finance resources:
extension)  Government USD xx
 Others: NGOs USD xx
 Others: private sector USD xx

 Total Co-Finance USD xxx

Report submitted by: ----------------------------------------------------------------------------------

UNDP focal Point: ---------------------------------------------------------------------------------------

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TABLE OF CONTENTS

ACRONYMS.................................................................................................................................................................... 3

EXECUTIVE SUMMARY................................................................................................................................................. 4

I. CONTEXT.................................................................................................................................................................... 5

II. PROJECT RESULTS SUMMARY............................................................................................................................... 6

III. PERFORMANCE REVIEW.................................................................................................................................... 10

III.1 Performance against indicators....................................................................................................................... 10
III.2 Progress review.............................................................................................................................................. 12
III.2.1 Overall progress................................................................................................................................... 12
III.2.2 Gender................................................................................................................................................. 13
III.2.3 Human rights........................................................................................................................................ 13
III.2.4 Contributions to direct and indirect beneficiaries..................................................................................13
III.2.5 Communications and publicity.............................................................................................................. 13

IV. IMPLEMENTATION STRATEGY REVIEW.............................................................................................................. 14

IV.1 Sustainability................................................................................................................................................... 14
IV.2 Participatory/consultative processes............................................................................................................... 14
IV.3 Quality of partnerships.................................................................................................................................... 14
IV.4 Timely delivery of outputs............................................................................................................................... 14

V. IMPLEMENTATION ISSUES (Risks Log)................................................................................................................. 16

VI. LESSONS LEARNED.............................................................................................................................................. 17

VII. FINANCIAL STATUS AND UTILIZATION............................................................................................................... 18

VII.1 Financial summary......................................................................................................................................... 18
VII.2 Financial overview......................................................................................................................................... 18
VII.3 Financial utilization report.............................................................................................................................. 19

ANNEXES..................................................................................................................................................................... 20
A1. LOGICAL FRAMEWORK........................................................................................................................................ 20

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ACRONYMS

CSO Civil Society organization

CP Country Programme
DBS Development Bank of Seychelles
EEZ Exclusive Economic Zone
FSC Financial Scorecard
GIS Geographical Information System
GEF Global Environment Facility
GOS Government of Seychelles
IOT Indian Ocean Tuna
METT Management Effectiveness Tracking Tool
MOU Memorandum of Understanding
MTE Mid-term evaluation
MEECC Ministry of Environment, Energy and Climate Change
MFBE Ministry of Finance, Trade and Blue Economy
M&E Monitoring and evaluation
NMS National Meteorological Services
NGO Non-Governmental Organisation
PPP Private-public Partnership
PCU Programme Coordination Unit
ProDoc Project Document
PSC Project Steering Committee
PUC Public Utilities Corporation
RTA Regional Technical Advisor (UNDP-GEF)
SIT Seychelles Institute of Technology
SBS Seychelles Bureau of Standards
SEC Seychelles Energy Commission
SIF Seychelles Islands Foundation
SIDS Small Island Developing State
S4S Sustainability for Seychelles
TWG Technical Working Group
TE Terminal Evaluation
TOR Terms of Reference
UNDAF United Nations Development Assistance Framework
UNDP United Nations Development Programme
UNISEY University of Seychelles
WHS World Heritage Site

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EXECUTIVE SUMMARY

The GOS-UNDP-GEF Grid-Connected Rooftop Photovoltaic Systems Project (PV Project) implemented from 2012 to
2016. Its total budget was US$ 1,160,000.00. The project was executed by the Ministry of Environment, Energy and
Climate Change (MEECC), and implemented on MEECCs behalf by the GOS-UNDP-GEF Programme Coordination
Unit. The objective of the project is to increase the use of grid-connected photovoltaic (PV) systems as a sustainable
means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-
scale producers who are already connected to the national electricity grid. The project will pursue this objective by,
inter alia: revising the legal, regulatory and policy framework to better support the adoption of renewable energy
technologies, and grid-connected PV systems in particular; designing and implementing financial mechanisms that will
make the purchase and installation of solar PV systems more attractive to Independent Power Producers; establishing
the first market supply chain for solar PV systems in the country; providing training to establish the first technicians to
support the installation and maintenance of PV systems; and demonstrating for the first time in the Seychelles the
viability and practicality of grid-connected PV systems through pilot systems installed with various partners.

The project had three components – along with their associated outcomes, outputs and activities - which contributed
towards achieving the project objective. These were: Component 1: Improved policy, institutional, legal/regulatory and
financial framework for Renewable Energy Technologies, Component 2: Strengthening of the technology support and
delivery system for Renewable Energy Technologies and Component 3: Solar Photovoltaic demonstration projects

Section I of this report gives the context of the project, which was to increase the use of grid-connected photovoltaic
(PV) systems as a sustainable means of generating electricity in selected main islands and smaller islands of the
Seychelles, with a focus on small-scale producers who are already connected to the national electricity grid.

Section II summarises the results of the project under each of its 13 indicators, and targets that were expected to be
reached for each of these indicators. This is based on the recorded results of the project as summarized in the annual
PIRs up to 2016, with additional points raised in the Terminal Evaluation held in October 2016, and updated since.

Section III analyses the results in terms of overall project performance. The performance of the project was generally
satisfactory. This section also provides the ratings table for the project as given in the Terminal Evaluation held in
October 2016. This section goes on to examine specific aspects of the project performance: gender aspects, human
rights, contributions to direct and indirect beneficiaries, communications and publicity.

Section IV reviews the project implementation strategy, focusing on the 3 areas that the project was expected to
address: 1) Improved policy, institutional, legal/regulatory and financial framework for Renewable Energy
Technologies; 2) Strengthening of the technology support and delivery system for Renewable Energy Technologies
and; 3) Solar Photovoltaic demonstration projects. It is noted that most were successfully addressed within the project
framework, and importantly that the sustainability of project interventions was rated as likely.

Section V documents implementation issues as given in the risks log; there were no critical risks.

Section VI provides a summary of lessons learned in the implementation of this project, as identified by the TE
consultant.

Section VII summarizes the projects financial expenditure. At the date of completing the final report, almost all project
funds are spent. It is noted that an additional US$ 106,966 was raised in leverage funding in the last 15 months

An annex to the report gives the project log frame.

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I. CONTEXT

The GOS-UNDP-GEF Grid-Connected Rooftop Photovoltaic Systems Project (PV Project) implemented from 2012 to
2016. Its total budget was US$ 1,160,000.00. The project was executed by the Ministry of Environment, Energy and
Climate Change (MEECC), and implemented on MEECCs behalf by the GOS-UNDP-GEF Programme Coordination
Unit.

The objective of the project was to increase the use of grid-connected photovoltaic (PV) systems as a sustainable
means of generating electricity in selected main islands and smaller islands of the Seychelles, with a focus on small-
scale producers who are already connected to the national electricity grid. The project pursued this objective by, inter
alia: revising the legal, regulatory and policy framework to better support the adoption of renewable energy
technologies, and grid-connected PV systems in particular; designed and implemented financial mechanisms that
make the purchase and installation of solar PV systems more attractive to Independent Power Producers; established
the first market supply chain for solar PV systems in the country; provide training to establish the first technicians to
support the installation and maintenance of PV systems; and demonstrate for the first time in the Seychelles the
viability and practicality of grid-connected PV systems through pilot systems installed with various partners.

The Project Document was signed in May 2012 and implementation commenced in September 2012 The project
duration was four years, ending June 2016, but was extended without additional cost until 31 st December 2016.
.
The project had three components – along with their associated outcomes, outputs and activities which contributed
towards achieving the project objective. These were: Component 1: Improved policy, institutional, legal/regulatory and
financial framework for Renewable Energy Technologies, Component 2: Strengthening of the technology support and
delivery system for Renewable Energy Technologies and Component 3: Solar Photovoltaic demonstration projects

The implementation modality was National Execution, with the Ministry of Environment, Energy and Climate Change
(MEECC) as the Executing Agency and the GOS-UNDP-GEF Programme Coordination Unit (PCU) as the
Implementing Agency, with UNDP Seychelles Country Office exercising quality control.

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II. PROJECT RESULTS SUMMARY
Description Description of Indicator
OBJECTIVE: Increase Cumulative amount of
the use of grid-connected reduced CO2 emissions
photovoltaic (PV) systems compared to the project
as a sustainable means of baseline from the demo
generating electricity in projects by EOP, tonnes
selected main islands and CO2eq
smaller islands of the Cumulative installed capacity
Seychelles of grid-connected PV
systems (kWp)
Cumulative total electricity
generation from installed
grid-connected PV systems
(kWh)
OUTCOME 1: No. of grid-connected RE
Comprehensive and production projects approved
strengthened policy and and facilitated by the IER by
legal frameworks adopted EOP
to promote RETs and
enable grid-connected
renewable energy
production
No. of grid-connected RE
production projects that
benefitted from the
enforcement of the
strengthened legal
frameworks by EOP
Volume of funding mobilized
or granted) from the
incentives scheme by EOP,
US$
OUTCOME 2: Enhanced No. of entities in the country
Baseline Target Level at
Level end of project
0 1,512
0 1,305
0 1,696,419
0 At least 30
0 At least 30
0 1,473,707
0 At least 10
Achievement at end of project
TARGET 100% ACHIEVED AND SURPASSED.
It is estimated that an emissions reduction of 2,570 tons CO2eq has
been achieved as of 30 November 2016 from grid-tied PV
installations.
TARGET 100% ACHIEVED AND SURPASSED.
According to the Public Utilities Company (PUC), the total installed
capacity from grid-connected PV as of 30 November 2016 is
1,878kWp.
TARGET 100% ACHIEVED AND SURPASSED.
It is estimated that the total electricity generation from grid-connected
PV systems had reached 3,656,587kWh as of 30 November 2016.
TARGET 100% ACHIEVED AND SURPASSED.
As of 30 November 2016, there are 191 grid-connected PV
installations across the inner islands of Seychelles. This includes 137
residential premises, 54 commercial premises (of which 6 are
schools). The residential installations account for 688kW, with 69%
having benefited under the PV rebate scheme. The commercial
installations account for 1,190kW, with 46% having benefited under
the PV rebate scheme.
TARGET 100% ACHIEVED AND SURPASSED.
As of 30 November 2016, there were 191 grid-connected PV
installations across the inner islands of Seychelles.
TARGET 86% ACHIEVED
In total, SR 16,418,736.40 (US$ 1,262,979.72 using US$ 1 : SR 13)
has been deposited into the Development Bank of Seychelles (DBS)
account; SR 8,209,368.20 (US$ 631,489.86) from the GOS-UNDP-
GEF PV project funds matched by SR 8,209,368.20 (US$
631,489.86) from the Ministry of Finance, Trade and Blue Economy
(MFTBE) (Government co-financing). As of 30 November 2016, SR
4,848,225.98 (US$ 372,940.46) of these funds had been disbursed
(30%), leaving enough funds to facilitate the installation of up to 1
MW more of grid-connected PV beyond the project lifespan.
TARGET 100 % ACHIEVED.
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national capacity for the
development, operation,
and financing of RET
systems
OUTCOME 3: Increased
electricity production from
RET systems (e.g., PV
systems) and interest
among energy sector
investors and operators.
gainfully engaged in the
various supply chain
activities of the PV and RET
markets by EOP.
No. of personnel of the MOF,
local banks and FIs that are
actively working on the
formulation and
implementation of incentive
schemes and on the
evaluation of the
economic/financial viability of
grid-connected PV system
projects by end Year 1
No. of local banks/FIs that
are providing financial
assistance to grid-connected
PV system projects by EOP.
No. of joint ventures and/or
licensing agreements
between foreign PV
manufacturers and local PV
and RET companies
facilitated by the business
association by EOP
Cumulative amount of
reduced CO2 emissions
compared to the project
baseline from the demo
projects by EOP, tonnes
CO2eq
Cumulative total electricity
generation from grid-
There are currently 10 PV suppliers endorsed by the Seychelles
Energy Commission (SEC) and an additional 2 electrical companies
that are certified to install PV in Seychelles. Procedures are
underway for a formal PV standards and a registry of PV companies
by early 2017, both of which will help ensure high-quality products
and after-sales services in the sector.
0 4 TARGET 100% ACHIEVED.
The Seychelles Energy Efficiency & Renewal Energy Programme
(SEEREP) loan scheme was evaluated in 2016 under the GOS-
UNDP-GEF Resource Efficiency project shows 4 banks have been
processing loan applications. Unfortunately, an exact figure for
number of personnel involved is not available, although one can
safely assume that the baseline of 4 has been surpassed if we
include the 4 banks, Seychelles Energy Commission (SEC),
Development Bank of Seychelles (DBS) and Ministry of Finance,
Trade and Economic Planning (MFTEP) staff in the processing of
both SEERREP loan and PV Rebate applications.
0 3 TARGET 100 % ACHIEVED AND SURPASSED.
As mentioned above, 4 banks have processed SEEREP loan
applications. Although 84 applications had been approved to date,
only 11 were for PV systems. Additional public awareness activities
under GOS-UNDP-GEF Resource Efficiency project may increase
uptake, but this does not always translate to loan approvals by the
commercial banks as they apply their own terms and conditions. In
March 2016, Mauritius Commercial Bank (MCB) extended their
Green Loan Scheme to include Seychelles, and to date there have
been 10-12 approved applications.
0 3 TARGET 100% ACHIEVED.
As mentioned in the 2014 and 2015 PIR Reports, individual PV
suppliers have developed or are established as on-going affiliations
with international manufactures. To further indicate local capacity for
developing joint ventures: In November 2015 Government launched a
tender for a 4MW Lagoon PV farm and 2 local companies partnered
up with international companies to submit a bid. Both joint ventures
have been shortlisted for the second round together with 10 other
international investors.
0 1,512 TARGET 100% ACHIEVED AND SURPASSED.
To date, the approach was taken that all grid-connected PV
installation post-2012 may be regarded as demonstration projects. If
this logic is continued, then as such it is estimated that an emissions
reduction of 2,570 tons CO2eq has been achieved as of 30
November 2016.
Minimal 1,696,419 TARGET 100% ACHIEVED AND SURPASSED.
Following the same logic as in the previous indicator - that all grid-
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connected PV systems by
EOP, kWh
No. of replication projects
implemented that are based
on or influenced by the
success of the PV system
demonstrations by EOP
connected PV installation post-2012 may be regarded as
demonstration projects - then as such the total electricity generation
from grid-connected PV systems was 3,656,587 kWh as of 30
November 2016.
0 3 TARGET 100% ACHIEVED AND SURPASSED.
Replication Project 1) The GOS-UNDP-GEF Resource Efficiency
Project is on going.
Replication Project 2) The Government launched the PV
democratization project (solar homes project) in late 2015 and to date
25 of the 400 targeted homes have benefited from a free 3kW PV
installation. This will significantly reduce the socio-economic skew in
households PV uptake.
Replication Project 3) A solar school programme was launched in
early 2016 and to date 4 schools on La Digue and Praslin have
benefited from free PV installation; the Government is in the process
of sourcing additional funds to do the same for schools on Mahe,
aiming to install at least 10 kW on each school
Replication Project 4) As of early 2016, the Government together with
UNDP embarked on the development of a national proposal for GCF
focusing on scaling-up PV;
Replication Project 5) A further commercial solar farm of 5MW is to
be developed on Romainville island utilizing space under the existing
wind turbines.
Replication Project 6) The Government has also tendered for a 4MW
lagoon PV farm
Replication Project 7) Project results and lessons learned have been
taken up within GOS planning for a 100% renewable energy strategy,
involving PV, wind turbines, biofuel and other sources, battery and
pump storage. This is expected to be developed over the next years
and implemented through NAMA facility
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III. PERFORMANCE REVIEW

III.1 Performance against indicators

According to the Terminal evaluation, the overall project results rating is Highly Satisfactory.

The project has delivered expected results and reached planned objective and outcome level targets.
Due to the implemented adaptive management and implementation strategy adjusted to actual PV market
development, several output-level indicators are not relevant and some output level targets have not been
met. These indicators refer mostly to project activities rather than outputs as indicated, and thus this did not
impact achievement of the overall project objective and outcome results. As of 30 November 2016, 12 of the
13 DO targets have been achieved, 9 of which have surpassed expectations. The only target not achieved
relates to payment of funds into the rebate scheme (86% of the expected fund) and this is not considered
problematic. The fund has actually been under-utilized, with many clients opting for paying the full cost of
installation rather than bothering with a rebate application. This indicates a high level of awareness of the
benefits of PV. Disadvantaged households not able to afford PV are targeted by Government schemes to
provide free installations. At EOP there is still a considerable amount remaining in the fund to cover any new
applications that may be submitted, and there are three loan schemes that can be accessed (SEEREP under
the GOS-UNDP-GEF resource efficiency project, a Government SME financing scheme and the MCB green
loan from the private sector) should these funds prove insufficient over the coming years.

OBJECTIVE LEVEL: Progress can be regarded as highly satisfactory with regards to overall uptake of PV
systems 30 November 2016 (191 installations achieved vs. 30 targeted installations and 1,878 kWp installed
capacity vs. 1,305 kW targeted). Their contribution to electricity generation is 3,656,587 kWh of actual
generated electricity vs. 1,696,419 kW targeted. Emissions reductions are calculated at 2,570 tons CO2eq
achieved vs 1,512 tons CO2eq targeted.

OUTCOME 1 (improved policy, institutional, legal/regulatory and financial framework for Renewable Energy
Technologies): As of 30 November 2016, the rebate scheme contributed towards 69% of residential PV
installations during the project lifetime and at least 46% of commercial installations. Despite the low PUC
electricity tariffs in 2016, investment in PV continues to grow, particularly in the residential sector, but new
installations during the last year seem not to have bothered with the rebate scheme opting for full payment.
Feedback has indicated that client choice in this respect is due to the rebate scheme being complicated and
time-consuming. At any rate, sufficient funds remain in the rebate scheme at EOP to fund at least another 1
MW of installation, such that a shortfall in the amount paid into the rebate scheme (noted above) is not
regarded as a significant issue for the project. It is noted that GOS fulfilled its commitment to matching
project funds, and has also made other funds available through associated RET financing schemes.

OUTCOME 2 (strengthening of the technology support and delivery system for Renewable Energy
Technologies): While there are 10 SEC-endorsed PV suppliers in Seychelles, and targets are met for
engagement of banks and capacity to establish joint ventures, progress is considered MS; this is because
the achievements of earlier years have not been carried forward this year. While additional training needs
have been identified, the PV project has lacked funds to continue supporting e.g. the rather critical long-term
capacity development through PV training programs at the Seychelles Institute of Technology (SIT). This has
been partially address through leveraged funds from the Environmental Trust Fund (ETF), but additional
funds are required to anchor the PV training programme. Although, SIT staff were provided with training in
City and guilds training in 2014, training of trainers in 2015 and again hands-on experience on PV installation
in 2016 through working with private companies, both instructors are no longer in a position to teach. On a
more positive note, staff from the Public Utilities Company (PUC) and Seychelles Energy Commission (SEC)
have been actively involved in data analysis and reporting (e.g. PUC demo project, National Performance
Assessment, PV rebate scheme monitoring) to develop internal capacity.

OUTCOME 3 (solar PV demonstration projects): Project reporting has considered all PV installations post-
2012 as demonstration projects, and if this is accepted then progress can be considered as HS with regards
to overall uptake of PV systems (191 to date), their contribution to electricity generation (3,656,587kWh) and
thus emissions reductions (2,570 tons CO2eq). It is also noted that there has been extensive replication and
uptake of various project initiatives into additional household-level and commercial PV schemes. The project
has throughout its lifetime engaged extensively with stakeholders at all levels and has conducted an intense
education and awareness campaign that is reflected both in the number of PV installations and in the
number of new projects/programmes focusing on PV.

CRITICAL RISKS: Net-metering has remained non-contractual, which was viewed as a potential critical risk
in discouraging uptake of PV. However, this does not seem to have had much impact on the uptake of PV,
possibly because of the introduction of the PV rebate scheme for the commercial sector in April 2015. The
9/27
Seychelles Energy Commission (SEC) and the Public Utilities Company (PUC) are now in the process of
tendering out the first formally recognised Independent Power Producer (IPP), which will allow for a feed-in
tariff to be established in the coming months, setting a precedent. Another potential risk has been the recent
lower electricity prices due to lower global fuel prices which was expected to impact on uptake of PV
systems, but again it appears that clients are able to take the longer term view (fuel prices and electricity
prices will one day rise again). The uptake of PV has been slower than expected under the rebate scheme
and also under the associated SEEREP loan scheme, but mechanisms are being put in place under the
GOS-UNDP-GEF Resource Efficiency project to better market the schemes and make them more appealing
to potential clients. While applications have increased significantly in the last few months, this does not
necessary translate into successful loan applications from commercial banks.

A COMMENT ON LONG TERM SUSTAINABILITY: With regards to the long-term sustainability of project
results, there are 2 PV farms in the pipeline that will install another 11 MW of PV by the end of 2017 and
push for the necessary policy change to allow for a Feed-in Tariff for Independent Power Producers (IPP).
Government is looking at possible South-South Cooperation to further implement the Solar School
Programme on Mahe, targeting 10 - 15kW per school or some 300 – 400 kW in total, as well as continuing
with the PV democratization project where 400 low-income families on social welfare are slated to receive a
3 kW PV system each for free or 1.2 MW in total. The Government, with UNDP assistance, will also be
developing both a GCF project proposal and a NAMA project proposal, both of which are aimed at
implementing the Nationally Determined Contributions (NDCs) that could potentially result in 100,000 tCo2/yr
in emission reductions. In the longer term, the Government is actively developing a strategy for 100%
renewable energy.

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III.2 Progress review

III.2.1 Overall progress

The project terminal evaluation, undertaken in October 2016, rated the project as follows:

Criterion Evaluator’s Summary Comments Rating

A. Assessment of outcomes
Overall rating of NO COMMENT FROM JIRI IN TABLE Highly
project Satisfactory
objectives and
results
A. 1. NO COMMENT FROM JIRI IN TABLE Highly
Effectiveness Satisfactory
A. 2. Relevance NO COMMENT FROM JIRI IN TABLE Relevant

A. 3. Efficiency NO COMMENT FROM JIRI IN TABLE Highly

Satisfactory
A.4. Impacts CATEGORY NOT INCLUDED IN TE REPORT ???

B. Sustainability of Project outcomes; (overall rating); Sub criteria (below)

B. 1. Financial NO COMMENT FROM JIRI IN TABLE Moderately
Likely
B. 2. Socio NO COMMENT FROM JIRI IN TABLE Likely
Political
B3. Institutional NO COMMENT FROM JIRI IN TABLE Likely
framework &
governance
B. 4. NO COMMENT FROM JIRI IN TABLE Likely
Environmental
C. Achievement of outputs and activities (see section on overall results and impacts)
D. Monitoring and Evaluation (overall rating); Sub criteria (below)
D. 1. M&E NO COMMENT FROM JIRI IN TABLE Highly
Design Satisfactory
D 2. M&E plan NO COMMENT FROM JIRI IN TABLE Highly
Implementation Satisfactory
- use for
adaptive
management
D 3. Budgeting CATEGORY NOT INCLUDED IN TE REPORT ???
& Funding for
M&E activities
E. Catalytic Role CATEGORY NOT INCLUDED IN TE REPORT ???

F. Preparation CATEGORY NOT INCLUDED IN TE REPORT ???

and readiness
G. Country CATEGORY NOT INCLUDED IN TE REPORT ???
ownership
H. Stakeholders CATEGORY NOT INCLUDED IN TE REPORT ???
involvement
I. Financial CATEGORY NOT INCLUDED IN TE REPORT ???
planning
J. CATEGORY NOT INCLUDED IN TE REPORT ???
Implementation
approach
K. UNDP/GEF CATEGORY NOT INCLUDED IN TE REPORT ???
Supervision and
backstopping

The terminal evaluation commented as follows:

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 The PV project has overpassed its objective and outcomes targets. 181 new PV systems have been
installed as of September 30, 2016 with a combined installed capacity of 1.79 MW resulting in 2,449
tons of CO2eq saved.

PV technology was adopted faster than envisaged due to strong incentives provided by the net-
metering scheme. Although the PV net-metering support scheme has not been formalized in
legislation yet, it has been approved by the Government/SEC, and it is implemented effectively by the
PUC.

Several output-level indicators that actually refer to activity-level are not applicable because the
project implementation strategy was adjusted to the actual market development and these activities
were deferred. For example, the project did not have to tender for and install demonstration projects
first, because the market-driven PV installations took up quickly.

III.2.2 Gender

The project does not have a specific gender dimension. It should be noted, however, that Seychelles is a
matriarchal society, so generally the emphasis in project implementation is placed getting men involved. The
energy sector is atypical in that it is dominated by men, so any inroads made by women are a positive step
forward.

The new PV project manager is a woman and she is now leading the various technical activities (i.e. the
national performance assessment and production of an irradiation map), as well as participating in linked
activities such as supporting Government development of a PV farm proposal to GCF.

There are at last 3 women working with PV companies in positions of authority, namely 2 female company
directors and 1 female sales manager. This has been possible because of the various incentives scheme
under the PV project that has allowed the renewable energy sector to grow rapidly since 2012, thus
providing opportunities for women to get involved. It should be noted that in recent years the majority of
qualified school graduates are women.

At least 4 of the 11 staff at SEC are women, 3 who occupy technical posts. While this may not be a direct
input from the PV project, their direct involvement in PV project workshops and PV project education and
awareness activities allows them to act as role models for the younger generation. Woman dominated the
team that organised the Solar School Launch in November 2015 (La Digue) and again in May 2016 (Praslin).
At each school benefiting from a free PV installation, both female and male students were encourage to get
involved in the various displays (see YouTube video of Praslin Launch) that were incorporated into the days'
agenda. Both genders were also encouraged to participate in the PV educational activities that were
conducted at La Digue school with S4S following the installation of the 5kW PV in November 2015. Similarly,
PV suppliers for the Praslin school installations were required to provide a training activity for teachers of
both genders; parents were also welcomed.

III.2.3 Human rights

This is not applicable to the GOS-UNDP-GEF PV project.

III.2.4 Contributions to direct and indirect beneficiaries

The Seychelles Institute of Technology (SIT) has been the primary direct beneficiary under the GOS-UNDP-
GEF PV project. In November 2015, ownership of the 5kW PV installation at installed under the DENA solar
roof programme by Sea and Sun Technology Germany was formally transferred to SIT. This system will
used in the PV training courses that will be offered at SIT, to this end training was provided for 2 instructors.
In 2014, Alex Labrosse and Jule Belmont received City & Guilds training in PV design and installation. This
was followed by a training of trainers in 2015, as well as hands-on experience in 2016 during the installation
of PV on Baie Ste Anne Primary School. To facilitate the development of PV training course for both
students and industry professionals, leverage funding was sourced from the Environmental Fund to buy
equipment for SIT. Course are expected to begin in 2017.

Following on from the Solar School launch, Sustainability for Seychelles (S4S) submitted a proposal for
funding from the Canadian High Commission to buy PV kits for every school lab to use for innovative
experiments, science fair etc. so that students and teachers can manipulate min-panels to better learn how
PV works. This will ensure that students can better appreciate and understand the systems that have been,
and will be, installed under the Seychelles Solar School Programme which is targeting all Government
12/27
schools. The PV project has also been working with S4S on a PV documentary to raise awareness on
climate change mitigation, renewable energy, it benefits as well as the various requirements and processes
involved in going solar.

Component 1 of the PV project addressed legal frameworks and policy reforms which have benefited the
private sector, namely the 10 PV suppliers that have been operating in Seychelles since 2012. The GOS-
UNDP-GEF PV project has received positive feedback from suppliers as queries/concerns are addressed in
a timely fashion. Over the course of the project, suppliers were kept abreast of new developments in the
industry and all have been provided equal opportunities to become involved in the Solar School Programme
and other PV initiatives.

The PV project has also indirectly benefitted staff from the Public Utilities Company (PUC) and Seychelles
Energy Commission (SEC) have been actively involved in data analysis and reporting (e.g. PUC demo
project, National Performance Assessment, PV rebate scheme monitoring) to develop internal capacity.

III.2.5 Communications and publicity

The project implemented an extensive range of awareness measures such as newspaper and magazine
articles, radio and television documentaries etc. The project also participated in national communications
fora such as national days (World Environment Day, etc.), fairs and expos.

The PCU website (www.pcusey.sc) includes comprehensive information on the project and the other projects
of the GOS-GEF project portfolio. The information is accessible to the public and includes a general
description of the project, all the products and consultancy reports funded by the project (including reports
prepared by partners where available), as well as project implementation reviews, including the midterm and
terminal review, and other reports. The information is well organized according to outcomes and type of
document.

The PCU also manages a Facebook account for brief project updates and a YouTube account where the
various documentaries created under the PV project have been uploaded.

A website was set up under the GOS-UNDP-GEF PV project (www.pvproject.sc) which provides up to date
information on the various financial incentive schemes available to potential PV owners.

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IV. IMPLEMENTATION STRATEGY REVIEW

As is noted in the ProDoc, the implementation strategy of the project focused on bringing together the
diverse government and non-government partners in Seychelles to work more closely in partnerships that
augment their individual capacities, knowledge and skills.

NO IDEA WHAT TO ADD

IV.1 Sustainability

Project sustainability was analysed by the Terminal Evaluation consultant, who found no financial, socio-
economics, institutional, governance or environmental risks to the sustainability of impacts from the project
for the reasons explained in the table below.

Mechanisms for sustaining project results

Result/impact Sustainability mechanism in place

PV The Government launched the PV democratization project (solar homes project) in late
democratisation 2015 and to date 25 of the 400 targeted homes have benefited from a free 3kW PV
installation. This will significantly reduce the socio-economic skew in households PV
uptake.
Solar School A solar school programme was launched in early 2016 and to date 4 schools on La
Programme Digue and Praslin have benefited from free PV installation; the Government is in the
process of sourcing additional funds to do the same for schools on Mahe, aiming to
install at least 10 -15 kW on each school.
GCF funding The Government together with UNDP have embarked on the development of a national
proposal proposal for GCF focusing on scaling-up PV. The proposal will be submitted to the GCF
board in April 2017.
The 2016 GCF proposal, for up to $23M, is to: 1) set up a vehicle for longer term technical support
and financial management to develop a pipeline of projects and policies toward the GoS 100% RE
target; 2) initial investments to overcome technical barriers to unlock private sector investment in
RE; and 3) initial policy and regulatory reform to facilitate appropriate incentives (primarily through
tariff changes) for RE uptake.
NAMA funding The Government together with UNDP have embarked on the development of a national
proposal proposal for the NAMA Facility focusing on a 100% renewable energy strategy, involving
PV, wind turbines, biofuel and other sources, battery and pump storage.
5MW A commercial solar farm of 5MW is being developed by PUC on Romainville island
Romainville PV utilizing space under the existing wind turbines.
Farm
4MW Lagoon The Government has tendered for a 4MW lagoon PV farm
PV Farm
South-South The Government is looking at possible South-South Cooperation to further implement
Cooperation the Solar School Programme on Mahe, targeting 10-15kW per school or some 300-
400kW in total.
PV rebate As of 30 November 2016, SR 4,848,225.98 (US$ 372,940.46) of the PV rebate funds at
scheme DBS had been disbursed (30%), leaving enough funds to facilitate the installation of up
to 1 MW more of grid-connected PV beyond the project lifespan. A review of the rebate
scheme is planned for April 2017.
SEEREP Loan As mentioned above, 4 banks have processed SEEREP loan applications. Although 84
scheme applications had been approved to date, only 11 were for PV systems. Additional public
awareness activities under GOS-UNDP-GEF Resource Efficiency project may increase
uptake, but this does not always translate to loan approvals by the commercial banks as
they apply their own terms and conditions.
MCB Green In March 2016, Mauritius Commercial Bank (MCB) extended their Green Loan Scheme
loan scheme to include Seychelles, and to date there have been 10-12 approved applications.
UK Space The UK Space Agency has approved a project which will use earth observation (EO) and other
Agency Project data sources to support Small Island Developing States (SIDS) in their transition from fossil fuel
electricity generation to renewables by developing a proof-of-concept energy planning tool – RE-
SAT. The aim is to test the proof-of-concept demonstrator focusing on Seychelles and solar and
wind renewable resources. The project is led by the Institute of Environmental Analytics (IEA) in
partnership with UNDP and the Government of Seychelles and fits with the initiatives that are
already underway in Seychelles through the roadmap for 100% renewable energy by 2050.

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IV.2 Participatory/consultative processes

The engagement of partners and beneficiaries was generally in accordance with the stakeholder involvement
plan (annex II of the Prodoc). All identified agencies and institutions were involved at various stages, and
project engagement.

As envisaged, the project was guided by a Project Steering Committee comprised of most key stakeholders.
A joint Steering Committee is established to oversee the current PV project and the closely associated
Resource Efficiency project, ensuring close coordination. Bi-annual Steering Committee meetings were
organized to periodically review project progress and approve the work plans. The SC will meet once more
to review and approve the TE report and management response, and thereafter will continue as SC of the
RE project only.

IV.3 Quality of partnerships

NO IDEA WHAT TO ADD

IV.4 Timely delivery of outputs

The delivery of many outputs was delayed. In the early stages of the project there were delays in field
activities due to delays in receipt of funds (which was itself due to complex procedures involved in dealing
with four responsible partners who took a while to understand the procedures, and a situation whereby one
partner not spending advance funds could prevent all other partners from receiving their next tranche). A
number of outputs were thus delayed beyond the end of the project lifetime, although at the time of writing
(September 2016) all are on schedule to be achieved in 2017.

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V. IMPLEMENTATION ISSUES (Risks Log)
Risks log last updated September 2016. Most of the Risks identified at the project inception have been retired.
Date
Type Description
Identified
Financial 5/6/11 Domestic market is too
small to make imports and
services for PV systems
economically competitive,
or to enable the
establishment of
committed local PV
dealers and technicians
     
     
Critical
Date Comment or Management Response
Flag
28/05/2013 The project will work with the Ministry of Finance and the Development Retired
Bank of Seychelles to ensure long-term (post-project) financial incentive
programs for PV system operators, so as to promote rapid and significant
market growth (to help meet the national policy goal of 15% of all energy
production from RETs by 2030). The project also will undertake significant
efforts to reduce and/or eliminate technical capacity barriers, which
currently constrain investment in PV systems, by establishing a reliable and
viable supply chain for PV systems in the Seychelles, including training to
private sector partners (e.g. electricians, technology sales companies, end-
users such as hotels and managers of outer island infrastructure) in
business planning, life cycle costing, quality assurance, procurement, and
marketing of PV and other RETs, so as to encourage private businesses to
provide the full range of services needed for delivery, installation,
commissioning, and after sales services of these technologies. In addition,
the project will coordinate closely in sharing lessons learned with the
UNDP-GEF technology transfer project “Removal of Barriers to Renewable
Energy in Mauritius, Rodrigues and the Outer Islands”, and will explore the
possibility of relying (at least in part) on supply chain operators in Mauritius
to service the Seychelles market and/or on developing opportunities for
Seychelles companies to supply the Mauritius market.
1/24/14 The domestic market is not only small, but is also less attractive for
consumers. This will somewhat me mitigated by the rebate scheme, but will
still saturate relatively quickly. SEC's long term plan to gradually increase
the domestic tariff rates will eventually serve to increase the size of the
market as well as viability of PV. Installers are not entirely convinced that
such changes will happen fast enough.
2/8/15 Since the introduction of the rebate scheme, a total of 44 systems have
been installed and rebated. This has amounted to some 225 kWp of
installed capacity. The level of activity in this market suggests that the cost
of PV is in line with an acceptable ROI.
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      22/2/2016 There are currently 12 PV companies endorsed by SEC but only 3 submit
monthly applications, the rest submit 1-2 applications every 6-12 months.
While three companies bare operating successfully, the above suggests
that the market is becoming saturated.
There are 111 installations to date - 78 residential and 31 commercial.
Rebate uptake in residential installations is 78% while only 52% of
commercial premises have applied for rebate. While residential applications
continue to increase, uptake by the commercial sector is slowing down.
      9/30/16 This is no longer regarded as a risk. There are currently 10 PV suppliers
endorsed by SEC and procedures are under way to have them formally
certified by SEC. There are 181 PV installations to date and many more in
the pipeline. Risk is retired.
Financial 5/6/11 Financial support for RETs 28/05/2013 During the PPG phase, the project team has carried out consultations with Retired
does not extend beyond two international finance institutions that are in the process of developing
the end of the project new financing mechanisms that can support the purchase of solar PV
systems over the long-term. The European Investment Bank (EIB) is
working with the Development Bank of Seychelles to establish a renewable
energy and energy efficiency projects loan mechanism. The EIB has
explicitly stated that it has a “long-term interest is to provide finance for a
range of renewable energy technologies and projects, as well as energy
efficiency investments in Seychelles”, and that after the initial renewable
energy line of credit is established, “it will be a relatively simple matter to
approve and implement further lines of credit in the future… for RE/EE
investments to a range of financial intermediaries”. In a separate initiative,
the International Finance Corporation has signed a Memorandum of
Understanding with the Seychelles Ministry of Finance, the Development
Bank of Seychelles (DBS) and Nouvobanq (a commercial bank owned by
the Government of Seychelles), to develop a High Risk Capital Loan
Program, which if implemented also will provide financing for “renewable
energy and energy-saving projects through the private sector”, and would
most likely focus on the household sector in its initial stages. In addition,
during the project implementation period, the project team will work with the
Seychelles Energy Commission to explore possible options for a tariff
surcharge or other funding to enable a long-term financial incentive
scheme. It is worth noting as well that the proposed project is designed to
jump-start the solar PV industry in the Seychelles, which should bring down
costs through better supply chains; increased competition; and the
existence of trained local personnel for operations and maintenance.
Project activities also will help to increase revenues (or savings) through
developing information on the best technologies / systems for local
conditions, and providing data on site-specific solar irradiation levels.
      1/24/14 This is still a concern, especially for the domestic market. Nevertheless,
models show that PV produces attractive returns and payback periods for
17/27
 the commercial sector as well as the high end domestic sector. A new
leasing bill has been passed, making it legal and feasible for third party
ownership of distributed PV power to be considered as an alternative to
subsidized systems
      2/8/15 The SEEREP (Seychelles Energy Efficiency and Renewable Energy
Programme), as a low interest loan scheme, has been set up in tandem
with the PV project rebate scheme. This has not been very successful, but
will be reviewed for the next phase of the rebate scheme, as well as under
the UNDP-GEF Resource Efficiency Programme. There is no indication of
financial support for RETs being cut back.
      2/22/16 The SEEREP is in process of review, but Government has indicated that it
does not plan to reduce or cut it's commitment to RETs. The SEEREP loan
limit is to be increased to SR 150,000 to encourage more uptake. Further,
Government has introduced a new initiative with support from Government
of India for democratization of PV, meaning provision of free PV systems to
poor households. This is not expected to impact significantly on SEEREP,
which has different target groups and a focus on multiple energy efficient
appliances and RETs, rather than just PV.
      9/30/16 This is no longer regarded as a risk. The SEEREP loan scheme has been
reviewed and the loan limit increased to SR 150,000. There are sufficient
funds in the DBS account to support an additional 1 MW of PV installations
under the PV rebate scheme, continuing post-project. In parallel, MCB has
launched a Green Loans scheme targeted at renewable energy, energy
efficiency and pollution mitigation. A PV documentary has been produced to
promote all the financial incentives and the GOS-UNDP-GEF RE project is
also running spots on SBC which should increase up-take. Risk is retired.
Regulatory 5/6/11 Enactment of new and 28/05/2013 Working in partnership with the EU-funded Seychelles Climate Change N
revised energy legislation Support Partnership, the project preparation team has ensured that a new
and regulations is delayed draft Energy Act (which will authorize grid-connected auto-producers and
PPAs; establish the SEC as an independent electricity regulator; and
authorize a new grid code to enable grid-connected RETs) will be submitted
to the National Assembly before this project even commences. In addition,
these two projects will maintain momentum with key government agencies
(Seychelles Energy Commission; Ministry of Finance; Ministry of Home
Affairs, Environment, Transport, and Energy) to champion new energy
regulation.
      1/24/14 The Act has been passed, and a Gross Net Metering tariff also exists.
Current issues pertain to a system size cap imposed by PUC (no more than
50% demand) that has been affected; the SEC is yet to take any action on
this issue.
Political 5/6/11 Lack of inter-institutional 28/05/2013 Establishment of a viable model for grid-connected independent power N
ownership and production may be perceived as a threat by the existing power production
cooperation in monopoly (PUC). The project will continue to work with PUC leadership to
18/27
 implementing the project make clear the potential benefits to PUC of grid-connected RETs (including
activities their own installation of RETs, as well as opportunities to become the major
player in installing, operating, and servicing RETs owned by auto-
producers), and with key government policymakers to ensure that
legislation and policies mandate on-going cooperation between PUC and
auto-producers
      1/24/14 There is mention of potential IPP projects that may be approved in future,
but as of yet, no project has been approved. IPPs, if and when they happen,
will be coming into a market that will have already shifted towards a
distributed PV power paradigm.
      2/8/15 PUC has demonstrated a more open and constructive attitude towards
distributed generation using PV. Inter-institutional cooperation is thus
improving.
Organizational 5/6/11 PV system operators do 28/05/2013 The project anticipates that regulations authorizing grid-connected auto- N
not participate as producers and the formulation of Installation Agreements will take place
promised due to concerns during the first year of the project, which together with Ministry of Finance
about Government commitments to financial incentives, will reassure PV system operators that
commitment, pricing, their systems will be integrated into the electricity grid and that pricing will
and/or technical be competitive and transparent. In addition, the project team will work with
challenges PUC to sort out all technical issues related to grid-connection in the early
months of the project, and to encourage PUC to assist with installations
and/or to train 3rd party technicians to carry out installations
      1/24/14 Auto-producers exist, MoF have committed funds to the financial rebate
scheme, and PV system installers are set to benefit from these key
milestones. PUC has also introduced a net metering scheme, allowing auto-
producers to send surplus energy onto the grid. This risk is reducing rapidly
and is expected to be retired shortly.
      8/12/14 Investments from end users are not secured because although a net-
metering system has been introduced it is non-contractual: it does not
involve a contract signed by PUC to guarantee net metering and/or rates
over any period of time. PUC can thus change the rate of payment for
surplus energy entering the grid, affecting returns on the investment.
      2/8/15 SEC's increasing status as a regulator, subsequent to reorganization of
Ministry of Environment and Energy in February 2015, is likely to abate this
risk, although this cannot be determined at this time.
      22/2/2016 Some PV suppliers are by-passing the PUC PV application process and
connecting PV systems to the distribution board, particularly for clients who
suffer from regualr power cuts and want to have battery back-ups. As with
the net-metering, there is no legal framework to regulate this but PUC will
not process applications for PV systems with battery back-up. This means
that there are a number of grid-tied systems connected after the meter
which are undocumented and could pose a risk as there is no procedure to
ensure that they are installed correctly.
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Operational 5/6/11 Human resources are slow
in being hired and/or
insufficiently trained to
successfully implement
the project
     
     
     
     
Regulatory 5/6/11 Public Utilities Corporation
may limit the amount of
grid-connected PV to 2%
of grid-connected
electricity production (i.e.
880 kWp of the 44 mWp
capacity)
     
9/30/16 The SEC PV company registry should help to document PV installations
that by-passed the PUC PV application process and are connected to the
distribution board. This wil allow SEC to inspect the systems and ensure
they are correctly installed and do not pose a risk, although some capacity
building may be required.
28/05/2013 The project will seek qualified technical personnel from throughout the Reinstated
Indian Ocean region, and if necessary, will recruit internationally for a Solar Y
PV Technical Expert. In addition, as part of the UNDP-GEF Programme
Coordination Unit in the Seychelles, the project will benefit from well-
established and efficient recruitment processes. The project also will
establish partnerships with recognized international entities and/or
individual experts with proven track records of successfully supporting
similar actions in other countries.
1/24/14 A Solar PV expert has been hired since Q4 2013 to support training of
national staff (among other tasks). Training has been organised with
Mauritius and organisations specialising in technical training of installers
and economists. Certification for installers is due to be implemented by the
end of Q2 2014.
2/8/15 Training of approximately 40 installers has been successfully undertaken. A
fulltime course is currently being implemented at the SIT. The only
remaining gap is that SEC still does not have a staff economist. In general,
human resource issues are not emerging as a major constraint. Risk
retired.
22/02/16 UniSey is offering a week long Renewable Energy course from 29th
February to 4th March 2016 at SR 1,800 per day - which anticaptes a
demand for training. While PV supliers are keen to participate, however, the
cost is beyond their budget and there are insufficient funds avalable under
the project to subsidise the training for SEC staff and PV installers.
9/30/16 SIT no longer has internal capacity to offer PV training courses - one trained
staff has resigned and the second trained staff may not be able to continue
teaching after undergoing a throat operation in Novemember 2016. SIT is
considering the option of hiring external instructors but may not be able to
raisie the funds needed to cover their fees.
28/05/2013 The project will work closely with PUC to resolve any technical concerns Retired
regarding grid-connected PV and overall grid stability so that PUC fully
understands the compatibility of PV systems with electricity grids as
demonstrated throughout the world, and so that PUC can abide by stated
government policy to greatly increase grid-connected RETs in the country.
1/24/14 This is no longer regarded as a risk, since a wind farm (managed by PUC)
of approximately 6MWp is up and running. Government has made clear its
20/27
intention of continuing to increase the number of RET projects in the
country, and has also show strong political will to ensure that auto-
production of RE from PV becomes an option for all buildings in Seychelles.
Indeed, there are technical concerns over the grid’s capacity to absorb, and
studies are due to be made this year (2014) to better understand its limits. A
new partnership between GOS and Reunion island was established in
2013; this will serve to provide technical assistance in this regard. Reunion
have a limit of up to 30% grid connected electricity production from RETs.
Risk retired.

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VI. LESSONS LEARNED

The project provides lessons learned and experience that input into the implementation of the current portfolio of
GOS-UNDP-GEF projects, and potentially the new round of projects anticipated under GCF funding and South-South
Cooperation. Besides the more global lessons learned noted below (as identified in the TE report) there are many
operational lessons that will be applied in the future energy related projects.

Lessons learned 1. Proper project timing, and strong and effective country ownership and commitment are key
prerequisites for successful project implementation. The PV project matched with this time-window opportunity when
the project was launched after Seychelles had adopted RE policy and targets already, but practically no PV
installations were in place yet. The timing of the project can serve as the best-case example, maximizing impact
against investment.

Lessons learned 2. High electricity tariffs combined with provisions allowing feed in of the generated power into the
grid and affordable terms of financing create a strong market incentive for investors and do not require significant
additional subsidies. However, PV requires 100% back-up, it does not offset utility infrastructure costs, and thus
remaining electricity tariffs need to finance all utility infrastructure costs in case of a monopolistic market (or
transmission/distribution costs only in case of a competitive market). PV technology makes the best economic sense
in case of high marginal variable utility generation costs, i.e. high fuel costs, especially in the short/mid-term. The
subsidy needed to cover the difference between avoided fuel marginal costs and PV generation costs in Seychelles
can be financed either by tax payers from public budgets, or by electricity customers through utility electricity tariffs.
The net-metering scheme in Seychelles with heavily cross-subsidized electricity tariffs provides a very strong incentive
for high-tariff consumers to install PV at the cost of PUC/other customers, and at the same time there is no financial
motivation to invest in PV for low-tariff customers.

Lessons learned 3. Technical integration of PV into the PUC infrastructure is a more complex task than envisaged
and budgeted for in the project document. Integration of PV technology impacts utilities’ capacity to control frequency
and voltage in their grids. Capacity to control frequency in the grid within required limits requires sufficient fast
(spinning) capacity at the utility power plant. PV generation depends on actual solar irradiation that can change quickly
with clouds, and thus increases demand for frequency control capacity. The higher the PV market penetration, the
greater the need for frequency control capacity. Within the scope of the PV project, with 1.79 MWp of PV installed so
far, the frequency control is manageable with existing PUC technologies. However, problems with voltage controls in
low-voltage networks may arise and should be addressed even with low PV penetration rate – especially in cases
when a utility has difficulties with maintaining proper voltage in low-voltage networks. In such cases, projects designed
to expand PV should be followed-up with an additional support on grid stability, as it is the case in Seychelles, which
integrated grid strengthening into their first application for Green Climate Fund support.

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VII. FINANCIAL STATUS AND UTILIZATION

VII.1 Financial summary

The project had a total GEF grant of US$1,160,000, which was expected to be supported with US$6,496,699 of co-financing from Government and other partners.
Additionally, US$106,966 was raised in leverage funds for 2016 giving a project total of US$6,603,665.

At the time of this report, 15th December 2016, more than 98% of grant funds had been spent.

VII.2 Financial overview

Financial overview for the whole duration of the project

EXPENDITURES (US $)
DONOR COMMITTED (US $)
2012 2013 2014 2015 2016 TOTAL*
UNDP-GEF 1,160,000 USD FROM NORMAN
Governmen
1,224,697 USD 631,490 USD
t
UNDP 60,000 USD 60,000 USD
Other 4,842,441 USD 11,048,318 USD
TOTAL

* Figures from Terminal Evaluation report

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VII.3 Financial utilization report

Financial utilization by outcomes

Item Account Overall Budget 2012 2013 2014 2015 2016 Total Amount Balance US$

Outcome 1:  
International Consultants 71200
Local Consultants 71300
Contractual Services
Individuals 71400
Travel 71600
Contractual Services - 72100
 
OUTCOME 2:
International Consultants 71200
Contractual Services - 72100
Audio Visual, Printing and
Prod Costs 74200
Misc Expenses 74500

OUTCOME 3:
International Consultants 71200
Contractual Services - 72100
Audio Visual, Printing and
Prod Costs 74200
Misc Expenses 74500
     
OUTCOME 4: Project Management
International Consultants 71200
Local Consultants 71300
Contractual Services
Individuals 71400
Unrealized Losses (See
note below) 76120
Learning Costs 75700
Total Expenditure

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25/27
ANNEXES

A1. LOGICAL FRAMEWORK

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