KGRTC Runs Three Online Courses (Under the SkiDRES Project)
The first online course to run was The Industrial Energy Efficiency Training which was facilitated by KGRTC in collaboration with SACREEE, this was followed by the last two online courses under the SkiDRES project which were conducted in collaboration with Africa GreenCo, the first online course under this collaboaration was the Financial Modelling and Bank Financing for Renewable Energy IPPs in Africa followed by the Renewable Energy IPPs Project Documentation course. All the three courses were supported by SIDA, ILO and ITC ILO, below are the details for each course that ran;
INDUSTRIAL ENERGY EFFICIENCY TRAINING (Online Course)
The Kafue Gorge Regional Training Centre (KGRTC), International Labour Organisation (ILO), International Training Centre for International Labour Organisation (ITCILO) and the SADC Centre for Renewable Energy and Energy Efficiency (SACREEE) partnered in conducting an online capacity building training to the industrial sector in energy efficiency for the sub-region.
The training was officially opened by on 20th July 2020 by the Director of ILO Mr George Okuto. In his opening speech which delivered online, he stressed the importance of energy and energy efficiency in today’s world. He was grateful to KGRTC for conducting the training in times when the SADC region and the rest of Africa are facing severe power challenges. The webinar was attended by over 50 participants with KGRTC Director Eng. Kaela Siame, SACREEE Executive Director Mr Kudakwashe Ndhlukula, Renewable Energy Expert Eng. Readly Makaliki, Head-Training and Consultancy Eng. Brian Makungo, SkiDRES Project Coordinator Ms Musoli Kashinga also in attendance.
This capacity-building activity was carried out under the Sida-funded Skills Development for Renewable Energy Sector (SkiDRES) pilot project, which is being implemented by KGRTC in collaboration with ILO.
The course started by creating an overview of energy audits and management thus making participants understand what the overall picture of the IEE Training was all about. The IEET delivered modules on the application of ISO 50006 methodologies for establishing baselines and performance indicators. It also created engagement with ISO 50001 as a means of developing energy management systems that intensive commercial and industrial facilities and municipalities in most SADC countries utilise to create industry champions in energy.
The course also held various cafés to create an opportunity to share challenges and experiences during the implementation. During the café, participants showed their appreciation of the rich and useful content of the course. They also indicated a few challenges with navigation within the eCampus. Participants were encouraged to continue working hard while appreciating that they have to work extra hours to get through the materials and assignments.
From the discussions and comments from the participants, the ultimate aim which was initialising savings realised through the implementation of low and no-cost measures in energy usage was achieved as the participants appreciated the knowledge acquired. The training also created opportunities for energy-saving and alternative energy supply.
Lillian Kamanga, a final year student, pursuing an honours’ degree in Electrical Engineering at The Copperbelt University, Kitwe, Zambia:
“……. I have come to realise how important it is to put in effort to use less energy to perform the same task. Practising energy efficiency has a lot of benefits which include a reduction in environmental pollution and lowering costs on a household, industrial and national level. I am confident to say that because of the training, I have become more aware of my environment and I am proud to be soon an Electrical Engineer who practices the use of energy in the most efficient manner possible. I am looking forward to sharing this knowledge with as many people as possible so that we can achieve the economic growth associated with practising energy efficiency together as a community. Much appreciation goes to Kafue Gorge Regional Training Centre and The Copperbelt University for giving me an opportunity to undertake this training”.
Bathsheba Chola, a final year student, pursuing an honours’ degree in Electrical Engineering at The Copperbelt University, Kitwe, Zambia:
“……. Industrial Energy Efficiency Training has been informative and very enlightening. The information I have received during the training has revolutionised my understanding of industrial energy efficiency. I have been enlightened on how energy efficiency can be improved with minimal or no capital at all by simply being more aware of the energy system so as to detect significant energy uses and see them as energy-saving opportunities. The training did not only provide ways of detecting significant energy uses but also provided detailed information on how to implement energy-saving measures. The energy management system tool that was provided and used during assignments was really an eye-opener, especially in the area of significant energy uses. Working with the tool showed that significant energy uses are not always large equipment but anything with large energy consumption like lighting for homes in certain cases. The training has been very interactive, and this has enabled me to learn a lot from both the presenters and my fellow participants. All in all, I have had a wonderful time on the course, learning and sharing. I am confident that the knowledge I have gained on energy management systems, audits, saving opportunities and performance indicators will not only be helpful in my career but life in general”.
Sandile Mamba, African Union Youth Club-Eswatini Chapter:
“……. has been of significant impact on me. The knowledge that Mr Alf continues to unpack on the webinars are quite informative and an eye-opener on a lot of aspects I have ignored and side-lined in my personal and professional life. It is a life-changing experience to gain such insight on; Energy Management System, Energy Performance Measurement, Energy Saving Opportunities, Energy Audits and Assessments”
Financial Modelling and Bank Financing for Renewable Energy IPPs in Africa (Online Course)
Renewable energy provides an opportunity to make energy resources sustainable. But organising financing for developing capacity in renewable resources may require a particular skill set. Financing is usually one of the most considerable barriers to capacity building and the development of sustainable energy projects in Africa.
The lack of this skill set made The Kafue Gorge Regional Training Centre (KGRTC) and Africa GreenCo team up and present the Financial Modelling and Bank Financing for Renewable Energy IPPs in Africa course. The course ran on 20th August 2020 from 14:00hrs to 16:30hrs.
One of the facilitators was Mr Johannes Baake, who is an experienced financial analyst with over 15 years’ experience in banking, project and development finance. He has vast experience in financial modelling, mainly advising large banks and funds on the financial structuring of energy projects in Africa. The other facilitator was Mr Saurabh Rao, who is a multi-dimensional expert in infrastructure with a focus on renewable energy. He has led dozens of large international project finance and structured finance transactions in emerging markets, with direct responsibility on financial modelling and deal structuring.
The objective of running this course was to analyse the implications of project finance features in renewable energy (equity, debt funding, debt size, DSCR, DSRA, debt tenor, re-financing) on costs and equity returns from renewable energy. Participants were introduced to a range of methods and tools available for renewable energy financial modelling and financing.
The course was one of the planned activities in the pilot phase of a capacity-building project called the Skills Development for the Renewable Energy Sector (SkiDRES), using a Public-Private Development Partnership (PPDP). SkiDRES is sponsored by the Swedish Development Cooperation Agency, Sida and is run in conjunction with the International Labour Office of Lusaka, Zambia.
The course was run on a pro bono basis as part of GreenCo’s corporate social responsibility programme, thus enabling KGRTC an opportunity to provide scholarships to over 30 stakeholders in the energy sector. A total of 65 participants were trained in this course.
Renewable Energy IPPs Project Documentation (Online Course)
As the energy transition (a move to decarbonised, decentralised and democratised power markets) slowly makes its way into sub-Saharan Africa, some utilities and regulators are showing signs of key market reforms that will enable more opportunities for corporate PPAs and new electricity players (intermediary offtakers, aggregators etc) and more reliance on electricity markets such as the Southern Africa Power Pool (SAPP) for risk mitigation and leverage. For example, fundamental changes have been seen in Namibia, Zambia and other energy markets where new energy policies have been introduced as a way of restructuring.
The Kafue Gorge Regional Training Centre (KGRTC) partnered with Africa GreenCo to offer the Renewable Energy IPPs Project Documentation course under the skills Development for the Renewable Energy Sector (SkiDRES) project, using a Public-Private Development Partnership (PPDP). The session was delivered online on Tuesday, 25th August 2020.
The course objectives focused on introducing participants to risk identification, allocation and mitigation techniques that are incorporated in renewable energy project finance. The training examined the kind of laws, policies, regulations, and incentives that could create a better understanding of the documentation requirements in renewable energy and energy efficiency improvement projects in Africa. The course was also meant to develop an understanding of the new market structures, wheeling arrangements, and the risk allocation in renewable energy project documentation.
With the significant changes in Africa, SADC region and Zambia, the training focussed on a discussion into objectives of the new regulations set in Zambia and examples include:
- The Electricity Act which seeks to facilitate several new approaches aimed at allocating some of the risk currently taken by ZESCO to other participants by shifting the sector from a single buyer market to a multi-buyer market.
- The ability to import and export power that has been extended to both enterprises and consumers who wish to purchase or sell power outside Zambia, subject to Ministerial approval. The approval of the Minister, however, is not required where electricity is sold or purchased on a competitive spot market or when required for emergency purposes.
- Open access to the grid as an essential prerequisite for introducing competition to electricity markets and thereby increasing their efficiency. For most practical purposes, open access can be defined as the possibility for any party selling or buying electricity, subject to a transparently formulated system.
The training also looked at wheeling In the Southern African Power Pool (SAPP) environment, which is based on the point-to-point concept recognising national borders as the points of entry and exit. An average wheeling charge based on historic trade and a perceptible number of transactions is in common use.
Some key areas discussed on the risk allocation in renewable energy project documents were issues to do with the key structural issues for (all) project finance transactions; typical power project documentation structure, PPA tariff structures, Commercial Operation Date (COD) and the consequences of delay, performance security and liquidity support, force majeure, Termination, Implementation Agreements and risk mitigation via traders and intermediaries such as GreenCo.
One of the facilitators was the GreenCo Chief Executive Officer, Ana Hajduka a lawyer by profession, an infrastructure and energy professional with over 14 years’ experience in a variety of transactions including project finance, public-private partnerships and project development, working on energy and infrastructure projects in emerging markets advising on a diverse range of projects within the energy sector, predominately in Sub-Saharan Africa. The other facilitator was the GreenCo Chief Commercial Director, Cathy Oxby, who has over 14 years professional experience in the infrastructure and renewable energy sectors, both as an adviser and an equity investor. [the course had three facilitators with the third one being Lovemore Chilimanzi]
The course attracted people that work with the development and evaluation of renewable energy projects, as well as those involved in stakeholder management and risk management. The focus was on those with basic and intermediate knowledge of renewable energy. Some institutions that participated in this program include the Ministry of Energy, ZESCO Limited, Rural Electrification Authority, Kariba North Bank Power Project Company, Equitas-Legal, Multiconsult, Industrial Development Corporation and Mopani Copper Mines, among others.