Beyond the Grid Fund for Zambia (BGFZ) is a Sida-funded initiative for renewable energy investments outside the national power grid in Zambia. BGFZ aims to speed-up market access and market development, promoting the development of energy services targeted to poor consumers who already spend a high proportion of their disposable income on substandard forms of energy.

Part of Sweden's contribution to the Power Africa initiative BGFZ employs a new and innovative model for large-scale public procurement of development results (Social Impact Procurement) which aims to increase transparency and ensure cost-effectiveness of the Swedish contribution and develop the market for renewable energy in Zambia. BGFZ will launch several competitive tender processes targeting national and international Energy Service Providers (ESPs). Each such call specifies a set of development results that are procured by ESPs. It may be a matter of a certain number of connections by households, companies and institutions to renewable electricity generation or a specified benefit (e.g. lighting, heating, cooling, jobs or reduced emissions). Simply put, the BGFZ "buys" pre-specified development results in a market.

In February 2016, the Embassy of Sweden in Lusaka contracted the Renewable Energy and Energy Efficiency Partnership (REEEP) to assist the Embassy with developing and administering BGFZ. The project includes market analysis, procurement, tender evaluation, review and monitoring of the contracts with ESPs. In June 2016, the first procurement round of the BGFZ was launched with a maximum total contract value of 150 MSEK. A decision to award contracts was taken by Sida in December 2016.

Monitoring and reporting on avoided GHG emissions

The Swedish Energy Agency has been assigned to propose methodologies for calculating CO2 emission reductions for the BGFZ including related information and reporting requirements that should apply to the ESPs. The assignment also includes outlining the envisaged roles of the key stakeholders.

This report outlines likely baseline scenarios and monitoring options for micro-grid, solar lamp and clean cook stove technologies in Zambia. The analysis presented draws upon a range of existing peer-reviewed scientific and other specialized literature as well as Clean Development Mechanism (CDM) methodologies. Throughout the analysis, baseline scenarios are suggested based on common practice and an assessment of potential accuracy. Considerations are presented in order to evaluate options for project monitoring and verification.

Conditions specific to Zambia have been applied to the estimates of potential emissions reductions where possible.