Download Report

This is a SESA and UNDP – DFID project
report
SESA is funded by the Dutch Ministry of Foreign Affairs in
partnership with Philips.
2ND STAKEHOLDERS’ CONSULTATIVE WORKSHOP TO DEVELOP
THE VOLUNTARY ACCREDITATION FRAMEWORK FOR VENDORS
OF OFF-GRID LIGHTING PRODUCTS IN KENYA
WORKSHOP REPORT
11th December 2014
Nairobi Safari Club, Nairobi
Report Prepared by Kenya Renewable Energy Association (KEREA) Secretariat
TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................. i
1
INTRODUCTION ................................................................................................................... 1
2
CONTEXT............................................................................................................................... 1
3
ACKNOWLEDGEMENTS..................................................................................................... 3
4
RECOMMENDATIONS OF THE WORKSHOP .................................................................. 3
4.1 THE ACCREDITATION COMPONENT OF THE PROJECT (CRITERIA AND
PROCESSES) ............................................................................................................................. 3
4.2 ACCREDITATION CRITERIA ...................................................................................... 5
4.2.1
IMPORTERS/SUPPLIERS ...................................................................................... 5
4.2.2
VENDORS/DEALERS............................................................................................. 6
4.2.3
TECHNICIANS ........................................................................................................ 7
4.2.4
AUDITS .................................................................................................................... 8
4.2.5
ACCREDITATION FEES ........................................................................................ 8
4.3 COMMUNICATION TOOL ........................................................................................... 8
4.4 MARKETING COMPONENT ...................................................................................... 10
4.4.1
MARKETING STRATEGY AND REACH .......................................................... 10
4.5
4.6
5
PRODUCT TESTING AT SERC CLEAN TECH LAB ................................................. 12
OTHER CONSIDERATIONS ....................................................................................... 12
APPENDIX 1 – LIST OF PARTICIPANTS ......................................................................... 14
i
1
INTRODUCTION
The 2nd stakeholders’ consultative workshop to develop the voluntary accreditation framework for
vendors of off – grid lighting products in Kenya was held on 11 December 2014, at Nairobi Safari
Club, Nairobi. The purpose of the workshop was to present draft strategies initially developed by
the association based on recommendations from a 1st stakeholders’ consultative workshop
convened on 10th September 2014, at Strathmore Business School, Nairobi.
The draft strategies are KEREA’s definition and approach to implementing “ The project to
Develop and Implement a Voluntary Accreditation Framework for Vendors of Off – Grid Lighting
Products in Kenya”, co funded by SESA and UNDP – DFID.
The project has a number of components, each of which has a defined implementation strategy,
based on the consolidated feedback from the workshops and additional recommendations made
through meetings with select stakeholders. Both workshops contributed to refinement of the
components and development of criteria, systems and processes for the voluntary accreditation
framework targeted at providers of off - grid solar PV lighting products and services.
These were presented for review, discussions and recommendations for improvement and
validation at the 2nd stakeholders’ consultative workshop. The workshop brought together 33
participants representing local businesses, technicians and institutions. The participants list is
included in Appendix 1 of this report.
This document is the full report and provides a summary of the recommendations and conclusions
of the workshop in regards to the voluntary accreditation framework; as per the consensus reached
in regards to each project component and strategy.
Administrative and logistical support was provided by the Kenya Renewable Energy Association
secretariat and UNDP.
2
CONTEXT
The Kenya Renewable Energy Association (KEREA) is conducting the “The project to Develop
and Implement a Voluntary Accreditation Framework for Vendors of Off – Grid Lighting Products
in Kenya”. The project is under implementation between 1 May 2014 to 31 October 2015, with
the broad objective of improving consumer knowledge of, and access to good quality products and
services available in the Kenyan market.
The project is broadly comprised of two components: products and services, focusing on importers,
suppliers, manufacturers, dealers, and technicians. Further, in addition to addressing issues around
the quality of products and services in the market, the project aims to create value for participants
in the project through marketing and awareness raising activities.
1
The project therefore has three main components:



Developing criteria, systems and processes for accreditation of vendors and technicians
Achieving the uptake of the accreditation framework and compliance by at least 100 vendors
Marketing the accredited vendors to reach at least 800,000 households across 40 major towns
in Kenya.
KEREA presented the project, outlining its activities and strategies, specifically the marketing
strategy. Strathmore Energy Research Center (SERC) presented on local solar PV testing at its
Clean Tech Lab, covering the aspect of ascertaining the quality of products as part of the
accreditation framework. Lastly, iHub gave a presentation on the use of mobile phone based tools
to disseminate information, covering the aspect of development of a communication tool for
marketing and awareness creation.
The workshop aimed to:
1. Provide an overview of the project, its activities, objectives, expected results and strategies
for implementation.
2. Present the voluntary accreditation framework – systems and process -and seek feedback
and recommendations for improvement.
3. Present the voluntary accreditation criteria - based on products standards and warranties
and system design, installation, maintenance and troubleshooting – and seek feedback and
recommendations for improvement.
4. Present the marketing strategy and seek feedback and recommendations for improvement.
5. Present the communication tool concept and seek feedback and recommendations for
improvement.
6. Present the solar PV testing facility at SERC Clean Tech Lab.
Collectively, these workshop aims determined the final course of action to be taken by the
association in order to roll out the project to stakeholders – importers, suppliers, manufacturers,
dealers and technicians – nationally.
The next steps in the implementation of the project are therefore to:
1. Raise awareness of stakeholders (importers, suppliers, manufacturers, dealers and
technicians) on the voluntary accreditation framework, nationally.
2. Receive and process applications for accreditation.
3. Develop the communication tool based on the list of accredited stakeholders.
The association will embark on the activity to raise awareness of stakeholders in the first quarter
of 2015. Suppliers, dealers and technicians seeking to participate in the project, or accreditation,
should contact the association at [email protected] and cc [email protected]. The project’s
information package, including brochures and application forms, will be made available from our
website at www.kerea.org.
2
3
ACKNOWLEDGEMENTS
The Kenya Renewable Energy Association extends its appreciation to the Sustainable Energy
Services Africa (SESA) Programme, and United Nations Development Programme (UNDP) and
UK’s Department for International Development (DFID) for supporting the project.
We would also like to thank all the participants for their time and contribution, with which the
stakeholders’ workshop was a success. All stakeholders are invited to provide feedback and inputs
into the project to ensure the best possible outcome for the solar PV market in Kenya.
These and any other queries can be addressed by post or email to:
The Kenya Renewable Energy Association
P.O. Box: 42040 – 00100 Nairobi, Kenya
E-mail: [email protected] and [email protected]
4
4.1
RECOMMENDATIONS OF THE WORKSHOP
THE ACCREDITATION COMPONENT OF THE PROJECT (CRITERIA AND
PROCESSES)
The accreditation component seeks to define the criteria for defining good quality solar PV
products and associated services, the process for auditing solar PV vendors and technicians and
the process for ascertaining compliance.
The general accreditation principles are:
1) Accreditation would complement existing statutory requirements such dealer and
technician licences issued by the Energy Regulatory Commission.
2) The accreditation would be valid for a period of one year from the date of approval, and is
therefore subject to renewal annually.
3) Good quality products will be assessed on the basis of international certifications or
performance testing at University of Nairobi Lighting Laboratory (UoN LL Lab) for solar
lanterns and SERC Clean Tech Lab for solar PV components.
4) Good quality services will be assessed on the basis of the competency of the technician,
with technicians demonstrating experience carrying out installations correctly. Technicians
would initially obtain an interim accreditation, and be upgraded to full accreditation on the
basis of higher levels of experience and a technical assessment of systems they have
installed.
5) Importers/suppliers would define and extend warranty periods and processes to dealers,
and dealers would similarly extend these to customers.
3
The accreditation component is summarized below.
Awareness creation campaign to
suppliers, dealers and technicians
Application for accreditation
submitted to KEREA
Auditing (suppliers and
dealers) and verification
(technicians)
Listing of accredited
suppliers, dealers and
technicians
Exclusively selling
internationally certified
products – proceed to
accreditation
Periodic random sampling
and auditing, review of
submitted quarterly
returns
Also selling non certified products –
proceed to testing while
offering longer warranties
Non - compliance removal from the list
Marketing of the list to
consumers
Figure 1Summary of Voluntary Accreditation
4
4.2
ACCREDITATION CRITERIA
There will be three categories of accreditation: importers/suppliers, dealers/vendors and
technicians.
4.2.1 IMPORTERS/SUPPLIERS
To be accredited, suppliers of solar PV products will be required to:
In regards to the products, assessment would be conducted as follows:







Have a valid license from the Energy Regulatory Commission (ERC).
Stock products with recognized and genuine international certifications such as IEC, CE and
UL, and provide a standard warranty period for each of the certified products, and/or
Locally test products without recognized international certifications, and provide an additional
6 months to the standard warranty period for each of the non – certified products.
Submit bi – annual returns indicating the number and types of products and components sold
and/or installed.
Serialize, label and brand products for purposes of tracking and traceability, and document
these in sales records.
Put in place warranty processes and required documents to ensure that valid warranty claims
(as a result of manufacturers defect) are honored within a 2 week period.
Provide warranty periods for manufacturers defects to dealers as follows:
Products
Minimum Warranty Periods for
Products With International
Certifications
Solar lanterns
1 year
Plug and play 1 year
solar kits
Solar
modules 5 years
(amorphous)
Solar
modules 10 years
(crystalline)
Modified solar 1 year
batteries
Specialized solar 2 years
batteries
Charge
2 years
controllers
Inverters
2 years
DC lights
2 years
Minimum Warranty Periods for
Products Without International
Certifications
1.5 years
1.5 years
5.5 years
10.5 years
1.5 years
2.5 years
2.5 years
2.5 years
2.5 years
5
4.2.2 VENDORS/DEALERS
To be accredited, dealers of solar PV products will be required to:









Have at least one dedicated accredited technician affiliated to the business.
Have a solar PV design tool.
Have a valid license from the Energy Regulatory Commission (ERC).
Stock products procured from accredited importers/suppliers, with recognized international
certifications such as IEC, CE and UL, and provide a standard warranty period for each of the
certified products, and/or
Stock products procured from accredited importers/suppliers, which have been locally tested
for those without recognized international certifications, and provide an additional 6 months
to the standard warranty period for each of the non – certified products.
Submit bi – annual returns indicating the number and types of products and components sold
and/or installed.
Stock products that are serialized, labelled and branded for purposes of tracking and
traceability, and document these in sales records.
Put in place warranty processes and required documents to ensure that valid warranty claims
(as a result of manufacturers defect) are honored within a 2 week period.
Extend the suppliers’ warranty periods to consumers for manufacturers defects and provide
warranty certificates to consumers as follows:
Products
Minimum Warranty Periods for
Products With International
Certifications
Solar lanterns
1 year
Plug and play 1 year
solar kits
Solar
modules 5 years
(amorphous)
Solar
modules 10 years
(crystalline)
Modified solar 1 year
batteries
Specialized solar 2 years
batteries
Charge
2 years
controllers
Inverters
2 years
DC lights
2 years
Minimum Warranty Periods for
Products Without International
Certifications
1.5 years
1.5 years
5.5 years
10.5 years
1.5 years
2.5 years
2.5 years
2.5 years
2.5 years
6
4.2.3 TECHNICIANS
There will be two levels of accreditation for technicians; interim accreditation and full
accreditation. All technicians will be considered for interim accreditation, and will be upgraded
to full accreditation on the basis of specific additional criteria.
To obtain interim accreditation, technicians of solar PV products will meet the following
requirements for assessment:





Provide proof that they have undertaken a relevant, formal solar PV training course.
Provide a testimonial from at least one satisfied customer, whose solar home system has been
installed for at least 6 months.
A recommendation letter from an accredited importer/supplier or vendor/dealer.
Commitment to provide commissioning certificates to customers.
Commitment to submit bi – annual returns indicating the number and locations of installations.
To obtain full accreditation, technicians of solar PV products will meet the following requirements
for assessment:




Have carried out installation of at least 2 solar home systems after receiving the interim
accreditation, as the lead technician.
Provide proof of having carried out the 2 solar home system installations. Specifically,
technicians will provide copies of commissioning certificates showing system specifications
such as types and sizes of components, cable sizes, and a list of household appliances being
used, amongst others. Additionally, technicians will provide photographs of the installed
modules (taken with the sun directly behind the photographer), batteries, inverters and charge
controllers.
Commitment to provide commissioning certificates to customers.
Commitment to submit bi – annual returns indicating the number and locations of installations.
To facilitate compliance by technicians, the association will avail the following templates of the
following documents:




Commissioning certificate
Bi – annual returns
Recommendation letter for importers/suppliers and vendors/technicians
Testimonial letter for customers
7
4.2.4 AUDITS
Suppliers, dealers and technicians seeking accreditation will send an application comprised of an
application form, checklist and supporting documents, as per the voluntary accreditation criteria
outlined above. Based on the submitted information, the association will assess, verify and audit
the applicant to determine compliance to the minimum criteria, which may include a physical visit
by a representative of the association.
The audit process would include outsourced local product testing for products that do not have
genuine, recognizable international certification, and specifically target manufacturers, importers
and suppliers. It would also include continuous, periodic and random site visits to audit and verify
adherence to the criteria. For instance, auditing of technicians would include visits to installations
while that of vendors may include review of records and collection of product samples. The
“feedback” function of the communication tool would contribute to the auditing process to include
follow up on specific complaints received.
Further, accreditation would require vendors and technicians to adhere to minimum reporting
requirements which would feed into the auditing and verification process.
Record keeping would include: installation completion certificates, quarterly returns indicating
the number and types of products and components sold, and number and locations of installations.
The returns would also provide some level of customer information, which may facilitate auditing.
4.2.5 ACCREDITATION FEES
The association is in the process of determining the accreditation fee and this information will be
provided at a later date. The fee will be based on the cost of running the project sustainably, and
the association is presently determining the long term operational costs of the project.



4.3
Outsourced local product testing, to be paid directly to the testing facilities affiliated with
the project
An application fee for accreditation of suppliers, dealers and technicians.
An annual fee for accredited suppliers, dealers and technicians. It was recommended that
different fees would be charged for suppliers, dealers and technicians’ accreditation. The
annual accreditation fee would be the main source of revenue towards the sustainable
operation of the communication tool.
COMMUNICATION TOOL
The communication tool is aimed at ensuring consumers are aware of the definition of good quality
products and services, and their providers, and can easily access information on the providers via
their mobile phones. The communication tool would therefore have three main functions:
8
i.
ii.
iii.
Solar lanterns
Solar PV systems
Feedback
Solar lanterns and solar PV systems functionalities would be further constituted of a list and details
of accredited suppliers, vendors and technicians by town, structured as shown below.
Solar
Lanterns
Start
Solar Home
Systems
Feedback
Town
Acc.
Suppliers
Name,
Contact,
Location
Acc. Dealers
Name,
Contact,
Location
Acc.
Technicians
Name,
Contact,
Location
The tool would therefore inform consumers who accredited suppliers, dealers and technicians, are,
and where they are located, in addition to providing a feedback channel for them to share
recommendations and complaints and contribute to monitoring. The feedback option may also be
used as a query system by customers to receive a response on where to get more information. For
instance, “for more information visit www.kerea.org”.
It was recommended that ease of use of the service, and provision of useful information for users
would be of paramount importance in the design of the tool. This was based on concerns regarding
the efficiency of using the tool. For instance, SMS system may result in receiving numerous
messages, while USSD may not be beneficial if consumers wish to store information in the
accredited providers in their phones. Further, considering that the number of towns documented
may possibly be as high as 62, there may be a lot of information to share and it may be difficult to
divide. For this reason, development may consider USSD or SMS only, or a combination,
depending on which design is the most beneficial to consumers. Once development of the tool is
underway, focus groups comprised of consumers will be used to determine how well the tool works
and adapt it to suit consumers better.
9
4.4
MARKETING COMPONENT
The marketing strategy is aimed at ensuring suppliers, dealers and technicians have an incentive
to become accredited and remain compliant, as a result of marketing activities undertaken by the
association. The association will undertake extensive marketing of the voluntary accreditation
framework and USSD/SMS tool to suppliers, dealers, technicians and consumers. This is
anticipated to take place from April 2015.
Marketing to suppliers, dealers and technicians will be carried out through a door to door
awareness creation campaign covering at least 40 major towns nationally. Information packages,
including brochures and application forms, will be distributed as part of the campaign.
Marketing to consumers will be carried out through extensive mass media including radio and
television stations as well as newspapers, in both English and vernacular languages. These media
schedules could be linked through consolidated packages offered within one media house e.g. TV
advertisements could mention newspaper features, and complimentary services could be sought.
It was recommended that KEREA negotiates advertising costs/week to be distributed over a
number of weeks. For instance, instead of having adverts every day of each week, adverts may be
placed three times a week for two weeks.
Specifically, vernacular radio would be maximized due to its popularity for marketing of products.
Other media will also be incorporated including fliers, posters, stickers, billboards and social
media. The marketing strategy will also include dissemination of lists and information on the
accredited stakeholders, fliers and posters as hard copies on other media publications e.g.
distributed in Energy Digest Magazine and Newspapers. Soft copies will be distributed via
KEREA’s and other websites, email, and bulk SMS.
Lastly, promotion activities could be undertaken for sensitization of consumers, with sponsorship
of prizes by accredited importers/suppliers. For instance, a “ponyoka na lantern” campaign may
increase consumer participation in the project, as well as increase the marketing value for
stakeholders.
4.4.1
MARKETING STRATEGY AND REACH
4.4.1.1 Television
Citizen TV has been selected because it is the leading television media house and has the highest
share of the market. It has almost 45% of the national audience of about 10.9 million, while the
2nd media house has 15%. The media also leads in urban and rural audiences at 45% and 44% of
5.8 million and 5.1 million, compared to the second media house at 16% and 14% respectively.
The best days for television, in order of highest to lowest are, Thursday, Monday, Friday,
Saturday, Sunday, Tuesday and Wednesday.
Q TV has been selected to complement Citizen TV, which predominantly transmits in English. Q
TV is the leading Swahili only station, and has a market share of 8.2% of 10.9 million.
10
4.4.1.2 Radio
The national audience for radio is about 21.02 million. The market shares of the various radio
stations are as summarized in the table below.
Fm Radio Station
Citizen (Swahili)
Jambo (Swahili)
Kameme (Kikuyu)
Inooro (Kikuyu)
Q (Swahili)
Radio Taifa (Swahili)
Ramogi (Luo)
Milele (Swahili)
Musyi (Kamba)
Coro (Kikuyu)
Kass (Kalejin)
Kiss (English)
Classic (English)
Egesa (Kisii)
West (Luhya)
Star (Garissa)
Chamge (Kalenjin)
Muuga (Meru)
Kaya (Swahili)
Wimwaro (Embu)
Market Share (%) Market Share (Number of People)
12.80
2,690,411
7.20
1,513,356
6.30
1,324,187
6.10
1,282,149
4.30
903,810
4.20
882,791
3.80
798,716
3.70
777,697
3.60
756,678
3.20
672,603
2.30
483,433
2.20
462,414
2.00
420,377
1.90
399,358
1.90
399,358
1.70
357,320
1.50
315,283
1.50
315,283
1.10
231,207
1.10
231,207
The distribution of listenership by day of the week across the top 5 radio stations is as follows:
Day
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
No. 1
Citizen
Citizen
Kameme
Kameme
Citizen
Citizen
Kameme
No.2
Jambo
Kameme
Jambo
Citizen
Kameme
Kameme
Citizen
No. 3
Kameme
Jambo
Inooro
Jambo
Jambo
Inooro
Inooo
No. 4
Inooro
Inooro
Citizen
Inooro
Inooro
Jambo
Jambo
No. 5
Classic
Classic
Classic
Classic
Classic
Classic
Radio Maisha
4.4.1.3 Newspapers
Nation Newspaper has been selected as it has the highest circulation nationally, at about 170,000
copies per day.
4.4.1.4 Reach
The project aims to reach at least 800,000 households, or 4,000,000 people (assuming the
average number of people per household is 5).
11
The association therefore proposes the tentative marketing strategy summarized in the table
below.
Media
Station
Prioritization of Days
English
Television
Swahili
Television
Vernacular
Radio Stations
Citizen TV
Thur., Mon., Fri., Sat.,
Sun., Tue. and Wed.
Wed., Tue., Thur., Sat.,
Sun., Mon., Fri.
Mon., Tue., Fri., and Sat.
English
Newspaper
Q TV
Citizen Radio
(Swahili)
Kameme
(Kikuyu)
Ramogi (Luo)
Musyi (Kamba)
Kass (Kalenjin)
Kiss (English)
Egesa (Kisii)
West (Luhya)
Star (Somali)
Muuga (Meru)
Wimwaro
(Embu)
Daily Nation
Supplement
Total
Number of people
listening, watching or
reading)
486,301
892,097
2,690,411
Wed., Thur., and Sun.
1,324,187
-
798,716
756,678
483,433
462,414
399,358
399,358
357,320
315,283
-
170,000
231,207
9,766,763
This selection of stations show that if one advert is placed in each media outlet available, the
project will be able to reach and exceed its target. Tradeoffs can therefore be made in regards to
the media outlets and audiences, based on the available budget. The marketing strategy will
therefore be refined as the project progresses.
4.5
PRODUCT TESTING AT SERC CLEAN TECH LAB
SERC Clean Tech Lab will begin conducting performance tests of solar PV products in March
2015 and is expected to provide cost indications in the form of a service catalogue. Further
information on this can be requested directly from SERC.
4.6
OTHER CONSIDERATIONS
There were concerns raised in regards to the costs associated with the warranty process and
honouring of warranties to consumers. It was determined that the associated costs are inevitable
12
and discussions between importers/suppliers should focus on this aspect as well. For instance,
perhaps the costs could be factored in to initial agreements between these parties, though this
would be addressed independently of the project.
Specifically, the cost of transporting solar PV products to importers/suppliers was highlighted. It
was suggested that KEREA considers engaging in discussions with a select courier company on
behalf of project participants to seek a discounted rate.
13
5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Name
Kennedy Okumu
Timothy Ranja
Jeremy Muiruri
Mark Juma
Caxton Ngari
Eliud Mungai
Kennedy Kirui
Geoffrey Ronoh
Elijah Kirui
James Mamo
Joseph Mdeto
Fred Obudho
Andrew Njoba
Ibrahim Amoni
John Omondi
Nicodemus Katumbi
Stephen Ndichu
Philip Mitey
Enos Orongo
Victor Agandi
Victor Omollo
Izael Da Silva
Simon Musawa
Chris Kimani
Peter Nyanzi
Roy Keloi
Robinson Nzomo
Justus Simiyu
Aisha Abdulaziz
Cliff Owiti
Charles Muchunku
Ayato Kurokawa
APPENDIX 1 – LIST OF PARTICIPANTS
Institution
Stopless Energy Enterprise
UNDP
Harmonic Systems
Sigul Limited
Hosana Institute
Star – Delta Institute
iHub
Strathmore University
Ministry of Energy and Petroleum
Jaman Engineering Construction
Harmonic Systems
Kickstart International
Helios Energy Limited
Bim Electrical and Solar
Solarlink Limited
Spectrum Construction Services
Energy Elixir
Luminas Technologies
Telesales Solar
Greenlight Planet
Future Energy
Strathmore University
Telefunken Kenya Limited
Suncatch Engineering
New Edge Technology
Climacento Green Tech Limited
Kika Power and Transmission Limited
University of Nairobi
Kenya Renewable Energy Association
Kenya Renewable Energy Association
Kenya Renewable Energy Association
Mitsubishi UFJ Morgan Stanley
14