Caribbean Efficient and Green-Energy Buildings Project (CEGEB)

active

The proposed Project will support investment and technical assistance for energy efficiency retrofits and installation of distributed renewable energy (DRE) systems in public buildings and other facilities in three participating countries: Grenada, Guyana, and Saint Lucia. Public buildings and other facilities eligible for investment under the Project may include central and regional administrative buildings, universities and schools, hospitals and clinics, stadiums, airports, water supply and sewage utilities, etc. To get benefits from economies of scale, the countries will procure jointly investments in EE and RE for public buildings under a process called pooled procurement with support from the OECS Commission. The Project will also include technical assistance to address regulatory and technical constraints to EE and RE investments, and build capacity in the planning, implementation, and operation of these investments in a sustainable manner. The Project has three components as described below. Component 1: Investment in EE measures and DRE systems in the public sector (estimated cost of US$112.35 million with the financing consisting of US$86 million loan from IDA, US$1.65 million grant provided by the Global Environment Facility (GEF), US$8 million loan from the Clean Technology Fund (CTF), US$7.7 million loan from the Canadian Clean Energy and Forest Climate Facility (CCEFCF), and US$3 million grant and US$6 million loan from the Caribbean Development Bank (CDB)). This component will finance investments in EE retrofits and the installation of new DRE systems in public buildings and other facilities and technical assistance for identification, design and operations of the investment. It will also help integrate these DRE systems into the national grids. The Project estimates to invest in about 500 buildings across three participating countries. Scope of retrofits and DRE developments. The EE retrofits may include active and passive EE measures, improvements in building-control systems and safe disposal of used equipment and materials. The DRE systems to be installed will be on-site rooftop solar PV, carport, or ground-mounted PVs systems- defined as distributed PV systems (DPVs)- as well as solar water heating systems. These systems in Grenada and Saint Lucia will be designed to resist strong winds and category 5 hurricanes. They may also include battery energy storage systems (BESS) for critical public buildings to enhance their energy resilience and to support optimal delivery of solar electricity generated to the power grid. A limited amount of funds of up to 15 percent may be allocated to ancillary measures to ensure integrity of buildings prior to retrofits such as roof improvement, minor structural repairs, mold removal, rewiring, fire safety, improving access, paints, etc., provided that the simple payback period of a subproject under an economic screening does not exceed the agreed maximum payback period. The component will also support safe disposal of used equipment and materials.Technical assistance for identification, design, construction, and operation phases of the investment in building EE retrofit and DRE development includes assessment and screening of subproject candidates, energy investment grade audits; preparation of technical, legal, and economic feasibility studies for the investment and support for verifications/certifications, etc. Grid integration support of DPVs investment may include technical assistance, capacity-building and necessary investment to enable efficient integration of these DPVs and reliable grid operation by the concerned electricity utilities, including upgrading of the distribution grid infrastructure, BESS installation and the development of modern energy-management solutions and systems for the utilities.Eligibility for financing: Subproject eligibility criteria to be used at the screening stage include confirmation from the energy assessment/audits that the proposed measures would result in an estimated energy savings of 20 percent or more and a maximum payback period of 20 years for the overall investment. The maximum payback period of individual EE and on-site RE measures must not exceed their expected life. The eligibility criteria will include the level of annual energy consumption, the renewable energy generation potential, essential public service functions, their readiness for participation in the Project and others.Subcomponent design. The Component will consist of three similar subcomponents, one for each of the three countries. The activities under the subcomponents may vary based on types of buildings and facilities selected for investment, as well as related sources of funding. • Subcomponent 1.1: Saint Lucia investment in EE measures and distributed RE systems (estimated costs of US$ 26.95 million with the financing consisting of US$ 25.3 million loan from IDA and US$ 1.65 million grant from GEF). This subcomponent will include investments in EE retrofits and DRE systems and associated technical assistance for selected public buildings and facilities, including those in Saint Lucia Water and Sewerage Company Inc (WASCO) and selected grid integration support of DPVs investment. A GEF grant will co-finance activities under Sub-component 1.1 with focus to support WASCO related activities. • Subcomponent 1.2: Grenada investment in EE measures, DRE systems and Variable RE integration (estimated costs of US$ 51.6 million with the financing consisting of US$ 34.6 million loan from IDA, US$8 million loan from CTF, US$ 3 million grant and US$ 6 million loan co-finance from CDB). This subcomponent will cover two areas as described below: 1.2.a EE retrofits and distributed RE systems for public buildings and facilities (estimated costs of US$25.6 million with financing all from IDA loan). This activity will include investment in EE retrofits and DRE for selected public buildings and facilities, associated technical assistance and selected grid integration support of DPVs investment, 1.2.b Variable RE integration at the Maurice Bishop International Airport (MBIA)-MBIA VRE Integration subproject- (estimated costs of US$ 26 million with financing from US$9 million loan from IDA, US$8 million loan from CTF and US$ 3 million grant and US$ 6 million loan from the CDB). Grenada Electricity Ltd (GRENLEC) is the implementing agency for this activity. Specifically, the activity will include technical assistance and investment for installation of utility-scale BESS and transmission system upgrade required for connecting the BESS to the national grid. The transmission system upgrade includes a new transmission substation at MBIA; upgrading of an existing substation at Grand Anse and two 33 kV transmission lines connecting these two substations. • Sub-component 1.3: Guyana investment in EE measures and distributed RE systems (estimated costs of US$ 33.8 million with the financing consisting of US$ 26.1million loan from IDA and US$ 7.7 loan from CCEFCF). This subcomponent will include investments in EE retrofits and distributed RE systems for selected public buildings and associated technical assistance, including those in the Guyana water supply and sewage company, and selected grid integration support of DPVs investment. Component 2: Regulatory Framework Development (estimated cost of US$ 3.7 million with the financing consisting of US$ 3 million loan, and US$ 0.7 million grant from IDA). This component will include four subcomponents: • Subcomponent 2.1. Saint Lucia Regulatory Framework Development (estimated costs US$1 million with the financing from IDA loan) • Subcomponent 2.2. Grenada Regulatory Framework Development (estimated costs of US$1million with the financing from IDA loan) • Subcomponent 2.3. Guyana Regulatory Framework Development (estimated costs of US$1 million with the financing from IDA loan) • Subcomponent 2.4. Regional Regulatory Framework Development (estimated cost US$ 0.7 million