Aug 10, 2021

End-of-Component Report on Technical Cooperation in Chile Renewable Energy NAMA Support Project is Now Available

© Hugo Munoz, GIZ
Capacity building event in February 2018. Demonstration of the proper use of the photovoltaic technology

The NAMA Facility funds NAMA Support Projects (NSPs) that effect sector-wide shifts toward sustainable, carbon-neutral pathways in developing countries and emerging economies. All NSPs consist of two components: Technical Cooperation and Financial Cooperation. Usually, upon completion of the NSP, it publishes an End-of-Project Report covering both components, but in rare cases when one components ends earlier than another, the NSP publishes an End-of-Project Report on that component, communicating main findings, achievements, challenges and opportunities.

The NAMA Facility funds NAMA Support Projects (NSPs) that effect sector-wide shifts toward sustainable, carbon-neutral pathways in developing countries and emerging economies. All NSPs consist of two components: Technical Cooperation and Financial Cooperation. Usually, upon completion of the NSP, it publishes an End-of-Project Report covering both components, but in rare cases when one components ends earlier than another, the NSP publishes an End-of-Project Report on that component, communicating main findings, achievements, challenges and opportunities.

The Technical Cooperation (TC), one of two components of the Chile Self-Supply Renewable Energy (SSRE) NAMA Support Project (NSP), has ended in December 2020 after 3.5 years of implementation. As the NSP’s Delivery Organisation, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in partnership with the Chilean Ministry for Energy (MoE), submitted an End-of-Project report of the TC component in March 2021. The final report reflects on the TC’s achievements and lessons learnt whilst also referencing the “Evaluation and Learning Exercise” (ELE) conducted for the TC component in autumn 2020.  

The TC ran between August 2017 and December 2020 with a budget of approximately EUR 3 million.  TC activities focused on awareness-raising and capacity-building to promote development of SSRE projects of a small and medium scale. The TC component also supported the Chilean government in improving political and regulatory conditions on the SSRE market.

Some of the TC’s main findings highlighted in the End-of-Project Report include: 

  • The TC had demonstrated “good flexibility” as a new sub-component was added as necessary

Key changes included the extension of the TC to policy and regulatory framework support, which resulted in the establishment of two MRV systems.Ability of the TC to reflect on and adapt to the emerging circumstances was also a highlight in the ELE Report.

  • Challenges and opportunities were faced by the NSP but the TC was a timely and necessary intervention

The TC achieved successes, as it was backed by the Chilean government’s clear commitment to promote renewables and shift the economy to a carbon-neutral pathway.This fruitful cooperation became possible because of the TC’s partnership structure including regular strategic planning sessions and executive coordination meetings, which facilitated alignment on approaches to decarbonisation and the development of action plans for the TC – an achievement that was also highlighted in the ELE report.

  • The TC component in some cases overachieved its targets in terms of outreach, technological improvements, and data collection systems

For example, 985 decision-makers in private and public sectors benefited directly from the NSP’s trainings and events. More than 660 SSRE installations were registered in the industrial, agricultural and commercial sectors targeted by the TC. Two MRV systems were developed and applied to quantify GHG emission reductions of more than 3,400 SSRE projects which led to the verification of 12 MtCO2e of annual GHG emission reductions.

  • Limited success establishing and delivering the financial mechanism affected the immediate practical results of the TC

The NSP faced challenges that significantly delayed the FC component. Due to that, out of 229 SSRE projects that received professional technical advice from GIZ and MoE, only four were implemented utilising their own funding. The remaining projects could not become a reality in the absence of the financial mechanism, which was to be offered by the then non-operational FC.

  • Strong national ownership allowed for the continuity of the results generated by the TC

Besides the TC’s End-of-Project report, this aspect was strongly emphasised by ELE. MoE has collaborated on and made use of several TC products, including the Monitoring Reporting and Verification (MRV)-tool, price indexes for three SSRE technologies (photovoltaics, heat pumps and biomass boilers) and methodologies for these price indexes. Materials created by the TC are widely available and constitute a crucial part of the German-Chilean bilateral cooperation on renewables.

  • Successfully implementing the FC will be important for the NSP to achieve its intended outcomes and trigger transformational change in the sector

With the completion of the TC, the FC’s successful implementation is needed to back the technical advances with an enhanced access to financial resources if upscaling in the practical application of SSRE technologies is to be achieved. Despite the fact that the SSRE sector’s role in Chile’s overall decarbonisation agenda is lessening as the electric grid becomes ‘greener’, small and medium scale solutions will still have their share in the overall reduction of GHG emissions nation-wide.

The full Chile Renewable Energy NSP End-of-Project report for the TC is available here.