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Small Hydropower Small hydro is a mature technology, but it is not well disseminated. The GEF has supported this technology in 54 countries from the outset and has identified several barriers to its adoption, including lack of information about the technology and about the resource itself; unsupportive institutional frameworks; regulatory obstacles; and absent or inadequate financing. In general, minigrid systems are progressing from pilot demonstration projects to policy options for rural villages. Hydroelectric resources often require joint community management, participation, leadership, teamwork, and coordination. Under a project in Sri Lanka, minigrid hydro installations were built, owned, and operated by the communities through electricity cooperative societies that were set up specifically for that purpose. Small hydropower is supported by the GEF through 44 projects with US$170 million of GEF funding and US$1.34 billion of cofinancing. Among other outcomes, these projects have led to investments in 411 MW installed capacity, mostly for rural and decentralized electrification. Under the Strategic Program for West Africa, some countries are implementing projects to develop the market environment to improve access to mini hydro-based energy services. The essential elements of the market-based approach envisaged for these projects are a critical mass of skilled and knowledgeable technicians; increased awareness of the appropriate technologies and best practices; and access to innovative financial mechanisms. These projects will establish two–three demonstration pilot sites each in off-grid, isolated communities and implement them using a learning- by-doing approach to build local capacity. CASE STUDY: INDONESIA—SMALL HYDROPOWER GEF Agency: UNDP Cofinancing: US$18.5 million OBJECTIVE Microhydro resources in Indonesia are abundant but remain largely untapped. This project is designed to remove key market, policy, technical, and financial barriers to microhydro development and utilization, and complements the ongoing and planned renewable energy and rural electrification initiatives of Indonesia’s government and private sector. The project aims to reduce GHG emissions from fossil fuel-based power generation. OUTCOMES The four main outcomes of the project are expected to be: (1) enhanced private sector interest and involvement in capacity building in the microhydro business community; (2) increased number of community-based microhydro projects as a result of effective institutional capacity building; (3) improved local knowledge and availability of the technology and its applications; and (4) increased implementation of microhydro projects for electricity and productive purposes. The project targets a GHG reduction of 60,800 tonnes of CO2 per year; creation of at least 40 community based microhydro projects for productive use each year; and cumulatively, in 3 years, 130 GWh produced, with 100 GWh sold. Further information is also available at: http://imidap.org/. Project Title: Integrated Microhydro Development and Application Program, Part I GEF: US$2.1 million Dates of Implementation: 2007–present INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE 23PDF Image | INVESTING IN RENEWABLE ENERGY: THE GEF EXPERIENCE
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