DARES Supply Side Index Development Tender, Nigeria - 94718964

Procurement Summary

Country : Nigeria

Summary : DARES Supply Side Index Development

Deadline : 18 Jan 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 94718964

Document Ref. No. : 0002006155

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

Purchaser's Detail

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Tender Details

Tenders are invited for DARES Supply Side Index Development

Access to electricity remains acritical challenge in Nigeria, especially in rural and economically disadvantaged regions. The Distributed Access to Renewable Energy Scale-Up (DARES) project aims to address this issue by leveraging innovative financial mechanisms and subsidies to make clean energy solutions more affordable and accessible to the most vulnerable populations.

Supply Side Subsidies will play a pivotal role in incentivizing distributors of Standalone Solar Solutions (SAS) and Mini Grids to extend their operations into rural areas without burdening end-users with increased prices. Currently, serving rural households poses asignificant economic challenge for solar companies. When expanding supply to these remote areas, solar companies encounter additional costs associated withthe expansion of supply chains. Passing on these costs to end-users would render the products unaffordable and defeat the project's objectives of enhancing access to clean energy.

To mitigate this challenge, incentive payments under the DARES project will be strategically designed to absorb a portion of the initial investment costs incurred by solar companies during the expansion of their distribution networks. These Supply Side Subsidies will vary in scale, with higher payments awarded for larger solar systems installed in deeper rural areas, where access rates are significantly lower. Additionally, to further promote affordability and digital inclusion, supplementary incentive payments will be provided for solar systems distributed through consumer financing mechanisms, such as Pay as You Go (PAYG).

To ensure the efficient and effective allocation of subsidies, there is a need to develop a comprehensive Vulnerability Index. The Vulnerability Index will serve as a key tool for the DARES project, allowing for the targeted deployment of subsidies to areas and households with the greatest need. By identifying regions with high vulnerability and low market penetration, the index will guide the allocation of supply side subsidies, ensuring that solar companies are incentivized to operate in these underserved areas.

The objective of this consultancy is to develop a comprehensive Vulnerability Index tailored to the specific needs and goals of the Nigeria DARES project. The Vulnerability Index will serve as a critical tool to guide the effective distribution of supply sidesubsidies within geofenced regions, ensuring that solar energy solutions are made available to the most economically disadvantaged and underserved communities.

Documents

 Tender Notice