The Project Grid Connected Off Grid Cross Sectoral Applications Energy Efficiency & DSM
 
 
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      Grid Connected
Technical assistance, both cost shared and full cost, will directly support the main objective of commercialising wind and biomass energy systems. Greater emphasis will be on cost shared activities. The grid-connected mini hydro industry, developed under the ESD Project, is reasonably mature and no specific technical assistance input is envisaged under the RERED Project.

Off Grid
As in other components, cost shared and full cost technical assistance will be available to support acceleration of commercialisation through income generation activities and declining subsidies. Full cost assistance will be provided only as an exception, and should prove to have added value for the industry as a whole.

Energy Efficiency, Conservation and Demand Side Management

Technical assistance will cover the following aspects:
   
Energy Efficient Building Codes: Support to apply Energy Efficiency Building Codes to two buildings through a Request for Proposals (RFP) process. GEF support will be provided to meet the incremental costs of some of the energy efficient equipment.
   
Industrial benchmarking: Support will be given to the Demand Side Management branch of Ceylon Electricity Board (CEB) to develop energy efficiency benchmarking standards for sectors such as textiles, tea etc.
   
Energy labelling programme: Support will be provided to CEB to set up a refrigerator testing laboratory that will help implement appliance labelling.
   
Monitoring and verification protocol: Support for developing generic monitoring and verification protocols and building local capacity to customise protocols to the needs of specific sectors and projects.
   
Capacity building for banks: Consultant assistance will be provided to commercial banks to build their knowledge base on energy efficiency technologies and their costs, to develop sound appraisal templates for energy efficiency projects and to structure options to mitigate credit risks.
   
Access to credit for Energy Service Companies / end-users: In addition to renewable energy technologies, the Project’s Credit Programme will be also open for Energy Service Companies and end-users interested in implementing energy efficiency sub-projects.
   
Cross-sectoral energy applications
For public institutions, the Project will provide technical assistance for awareness creation regarding energy alternatives (supply, conservation and backup) within ministries and Provincial Councils, assessment of impacts and benefits of access to energy, development of policy level energy guidelines and specification of standard energy packages. Support for implementation of selected investments to ‘electrify’ rural institutions will be available by leveraging additional financing from ongoing and planned GOSL initiatives and donor-supported projects.

For commercial institutions, the Project will aim to mainstream productive uses of off-grid schemes, targeting commercial/industrial off-grid connections. Technical Assistance will include awareness creation, assistance for ‘electrifying’ businesses, support for existing off-grid users to make better use of available energy, development of an incentive framework for incorporating productive uses in new sub-projects, clarification of the legal/policy framework and incorporation of specific focus on productive uses in to village mini-grid user groups.

Other
Technical assistance packages for other non-component specific areas will be procured by the AU and include the following:
   
Project administration/promotion: Support for the AU to ensure the Project’s smooth operation, emphasising simplicity, efficiency and speed consistent with the need for fiduciary and safeguard compliance.
   
Sub-project promotion/development support: Promote and develop renewable energy based village grids with increasing efficiency and integration into overall national and provincial programmes and plans.
   
Technology/market introduction/promotion/Renewable Energy and energy efficiency capacity building: Introduce and promote renewable energy technologies that are commercially established in other countries but not yet commercial in Sri Lanka. Support for policy development, modern technology introductions, market promotion, sustainability and capacity building for renewable energy, energy efficiency, conservation and demand side management. Integrate new stakeholders into the Project.
   
Post-Project sustainability: Develop and implement plans for the sustainable continuation and expansion of the renewable energy industry, including sustainability of funding, regulatory support, capacity building etc. and ensuring that renewable energy continues to make a significant contribution to rural development.
   
Monitoring and evaluation/surveys: Monitor the Project and sector physical progress and impact on government rural development goals.
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