[{"bbox": [86, 153, 399, 183], "category": "Section-header", "text": "3.5 The Intervention Logic"}, {"bbox": [96, 199, 1160, 399], "category": "Text", "text": "The underlying intervention logic for this action is that the development of an integrated resource plan, a streamlined regulatory framework for on-grid renewable energy generation and assistance to Independent Power Producers and project developers will contribute to renewable energy solutions – and energy efficiency – which are likely to alleviate Lesotho’s energy dependency while providing access to electricity. Lesotho currently imports over half of its electricity from South Africa and Mozambique. Given rising energy demands, this situation is unsustainable from an environmental point of view – imported electricity is mostly produced from fossil fuels (coal and gas) – but also from a public finance perspective, considering the burden it places on Lesotho’s balance of payments."}, {"bbox": [96, 412, 1160, 610], "category": "Text", "text": "The action will follow a “modular approach” and support the establishment of the enabling environment for on-grid renewable energy generation, investment and distribution as well as pipeline development for large-scale projects in the hydro-, solar, and/or wind power sectors, with a view to leveraging project financing via blending mechanisms in subsequent years of implementation of the MIP. At the same time, it will focus on smaller-scale interventions (encouraging women participation) aimed at reducing energy dependence, which could be already launched at this stage. This will be achieved via the establishment of a funding mechanism, including a mix of instruments (grants, results-based financing, loans)."}, {"bbox": [96, 624, 1160, 880], "category": "Text", "text": "This envisaged funding mechanism could contribute to the establishment of a National Energy Fund – if the Energy Act is adopted – and, through its different windows, support the development of the rooftop solar market, mini-grids, the commercialisation of improved cook-stoves, solar water heaters, energy efficient lamps, PAYGO SHS, etc. as well as the introduction of renewable energy and energy efficiency solutions for public buildings, commercial and industrial facilities. If achieved, these outputs will contribute to a more equitable and gender-transformative access to energy services. Support to the Energy Fund is based on a mix of instruments (project development support, matching grants, investment grants, results-based financing, women empowerment, as well as loans and guarantees). If the Energy Act’s adoption is delayed, this action could nonetheless contribute to establishing a funding scheme which could at a later stage be aligned to a national and multi-donor energy fund."}, {"bbox": [96, 894, 1160, 1035], "category": "Text", "text": "Finally, the action assumes that these objectives cannot be achieved without supporting Lesotho's energy sector leadership and institutional capacity. If policy frameworks are strengthened, more gender responsive, pro poor, the capacities of professional cadres across the Lesotho energy sector improved and policy-relevant energy and climate change data produced and disseminated, they will contribute to establishing a thriving ecosystem for the implementation of *Renewable Lesotho*."}, {"bbox": [1027, 1681, 1143, 1705], "category": "Page-footer", "text": "Page 13 of 25"}]