HCL Consultants and GFA. Ref: Mr Nick Craze ,nick.craze@hcl-consultants.com

The assignment specific results to be generated by the consultant shall include;

Result 1: Sector Governance:  Institutional adaptation – Programme for Change

Key Output 1: A re-constitution of the Department of Energy, to be transformed into a proposed Energy Commission and a new energy sector model with pertinent roles associated to each Institution for identifying and defining the mandates for the key Parties.

Activities

Work with the Department of Energy (DoE) in the form of support to the staff of DoE who, as is enshrined in their mandate, are the principal players in the implementation of anticipated changes in the sector.

This support will take a number of forms as required by DoE including, but not limited to the following:

• Carrying out analyses to support discussions with other sector participants;
• Preparation of papers to support DoE initiatives;
• Assisting with the preparation of presentations for DoE;
• Implementation of relevant organizational changes (while optimizing the current skills and capacities already available);
• Improving operational effectiveness using all the available employees and capacity;
• Defining and providing capacity building within the framework of the available resources as well as where this can be undertaken during the execution of specific tasks of the DoE;
• Develop a roadmap for the implementation and completion of the programme for change;
• Qualitative assessment of progress made as specified in the roadmap (above) defined in advance as a benchmark for the success of the programme for change.

Key Output 2: Operationalisation of the Energy Policy through legislation and regulations

• Support the DoE to implement the Energy Policy (EP) 2015 by all legal and regulatory means. The EP 2015-2025 has 15 policy statements in support of reliably and affordably ensuring energy access in order to improve the economy of Lesotho and the livelihoods of its citizens.

Activities

• finalise the revised institutional and legal framework, fostering clarity and separation of roles and responsibility in the energy sector;
• update existing energy sector policies, laws, and regulations. Assess the current Electricity Law, and verify the conformity with all other national legislative measures in force (laws, regulations and administrative provisions), including correlation with the single articles;
• elaborate the required Legislation and regulations;
• verify operation conditions of IPPs;
• elaborate a transparent set of procedures and approvals to expedite projects uptake;
• identify regulatory barriers and develop a programme for their remove or mitigation (examples include complex import and other taxes for off-grid energy products; improper implementation of product standards, etc.);
• review and advise on the impact of the proposed updates and revisions, as assessed by Ministry’s Legal & Regulatory Division.

Key Output 3: Enabled Environment for Private Investments in the Energy Sector 

• The barriers preventing an increase in private sector investment in the Energy Sector appear to arise more from considerations of policy and project preparation, rather than financing.

Activities

• Structure and assist in the implementation of a Financing Mechanism for energy solutions in off-grid areas;
• support the implementation of policy, regulatory and other actions aimed at improving the enabling environment for a market-based approach to private sector delivery of off-grid energy products and services (particularly, solar home systems);
• structure and eventually support the implementation of the financing facility, that will have a strong focus on financing small-scale energy projects in off-grid areas.
• include all stakeholders, such as NGOs and civil society groups that cater to the needs of poorer people who don’t have access to modern energy;
• generate and disseminate knowledge and evidence on the success factors for, and benefits of, private sector delivery of off-grid energy across Lesotho, including the application of learning;
• support businesses to improve their capabilities and skills to develop, grow and take advantage of market opportunities e.g. undertaking market analysis, and developing their products, ideas, and business plans;
• provide access to pioneer grant financing to enterprises in their start-up and early commercialization, and expansion phase (e.g. through  partial match-funded grants) for early-stage proof of concept, enterprise start-up, business development or geographical expansion;
• develop innovative conditions for local commercial banks and financial institutions or other private sector entities to become increasingly instrumental in providing energy related micro loans;
• capacity building of final beneficiaries through training of energy service providers, training on financial literacy and business development services