FORMTEXT The objective of the AMP in Somalia is “Supporting access to clean energy by increasing the financial viability, and promoting scaled-up commercial investment, in low-carbon mini-grids in Somalia, with a focus on cost reduction levers and innovative business models”. Given the domination of ESPs on the mini grid market in Somalia, the keywords in the objective statement are “clean energy” and “cost-reduction”, i.e. the project aims to increase the market competitiveness of “solar PV” mini-grid systems. To address baseline challenges and achieve the overall objective, the project design involves a collaborative strategy revolving around two central ideas: (1) Promoting digital transformation as an essential ingredient for creating an enabling environment for scaled-up investment in mini grid hybridization, and (2) Institutionalizing capacity building, stakeholder engagement, and the financial mechanisms targeting the shift from diesel to solar PV in the mini grid sector. These central ideas have influenced the contextualization of the components, outcomes, and outputs introduced by the AMP in the Program Framework Document (PFD), such that the AMP in Somalia is aligned with the AMP Regional Project design, yet sensitive to the national context and needs. The following figure captures the four elements shaping the proposed strategy for the AMP in Somalia, and the overarching Knowledge Management (KM) and digitalization targets on the national and regional levels. FFFFFFFF0000000000000A0070006A00420065006E00650066006900740073000000000000000000000000000000000000000000000000000000 Overview of the proposed design for the AMP in SomaliaThe project has numerous socioeconomic benefits, at the national, local and individual household levels, as listed specifically below. At the national level the project: - Helps increase access to off-grid electricity, thus relieving the burden on the government and allowing it to meet the increasing demand sooner without large invetments in infrastructure. - Reducing the amount of fuel needed for power generation from diesel-powered mini-grids. - Increased vocational training for renewable energy as well as installers and contractors who will do the work. - Of course, reduction of CO2 emissions as a direct result of reduced reliance on fossil fuel for energy. At the local level: - Reduced fuel combustion in diesel generators will result in reduced air pollution and reduced particulate matter, resulting in better health for the local population. - Reduced need for fuel transport to support mini-grids also means reduced congestion, fire and explosion hazards, and further reduced pollutants. At the individual house-hold level: - Reduced operational cost for ESPs will enable service provision at lower costs, hence lower tariffs leaving additional income at households for other matters. - Improved stable access to clean energy is the starting point for households to become more comfortable and enables better adoption of modern technology for different purposes. This is becoming more crucial in light of the COVID-19 pandemic and the necessity for family members to work from home or attend online classes.

Note: Disbursement data provided is cumulative and covers disbursement made by the project Agency.

Supporting access to clean energy by increasing the financial viability, and promoting scaled-up commercial investment, in low carbon mini grids in Somalia, with a focus on cost reduction levers and innovative business models