Financial Modelling Associate- Fiji Rural Electrification Fund (FREF)

The UN Development Programme is the lead UN agency fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in more than 170 countries, we help nations to build integrated, lasting solutions for people and planet.

In the Pacific, UNDP provides regional and country support to ten countries (Federated States of Micronesia, Fiji, Kiribati, Republic of the Marshall Islands, Nauru, Palau, Solomon Islands, Tonga, Tuvalu, and Vanuatu) and regional support to five countries (Cook Islands, Niue, Papua New Guinea, Samoa, and Tokelau), together with a total population of 2.4 million.

UNDP is guided by a Sub-regional Programme Document for the Pacific Island Countries and Territories 2018-2022, which in turn contributes to the achievement of an overarching UN system-wide Pacific Strategy. The Programme is shaped to assist countries to advance the global 2030 Sustainable Development Agenda tailored to each country's priorities, through focus on data, policy prioritization, participatory planning, and budgeting and monitoring - and with accelerated action to meet the 17 Sustainable Development Goals (SDGs).

UNDP seeks to target the most vulnerable i.e. people experiencing hardship, the marginalized living in remote rural areas, those who are vulnerable to climate and disaster risks, as well as women and youth excluded from socio-political and economic participation. UNDP adheres to an inclusive, pro-poor and human rights-based approaches that leverage cross-practice, multi-disciplinary expertise of UNDP.

The Fiji Rural Electrification Fund (FREF) support project aims to foster the development of rural mini grids to improve access to clean, affordable, and reliable renewable energy. In doing so, it plans to also diversify Fiji’s energy mix to reduce carbon dioxide emissions from the Fijian power sector, contribute to national electricity access objectives and promote gender-balanced economic growth using electricity as an enabler for inclusive sustainable development.

The project will seek to electrify at least 20 rural communities in 4 years to support the expeditious implementation of FREF as well as demonstrate best practices to shore up investments in FREF and its rural electrification objectives while building long term implementation and management capacity within the Department of Energy to continue FREF on a long-term basis. It will benefit at least 6,500 Fijians and avoid over 2,920 metric tonnes of carbon dioxide equivalent by installing over approximately 2 megawatts of renewable energy.

The provision of electricity is combined with modern auxiliary services such as smart meters, mobile payment, digital connectivity and clean water and sanitation solutions to - among other things – induce productive electricity use cases and lift standards of living in rural communities. The ability to productively harness the provided clean electricity is expected to enable rural Fijians to increase community income through multiple economic activities, reduce social inequality and promote gender inclusivity. All of which also contributes to building more climate informed resilient livelihoods.
Source: UNDP Pacific – FREF Project

Objective of the Assignment
The objective of this assignment is to develop comprehensive financial models to support the scaling of solar mini-grids under the FREF. This includes:

1. FREF Fund-Level Financial Model
A comprehensive financial model for the overall FREF fund, projecting revenues, expenditures, and funding requirements over a [Specify Time Horizon, e.g., 10-year] period. This model should incorporate key assumptions regarding capital costs, operating expenses, tariffs, subsidy mechanisms, and loan repayments. It should also be adaptable to scenario analysis and sensitivity testing.

2. Site-Specific Financial Model (Joint Venture Model)
A replicable and adaptable financial model template for individual solar mini-grid projects implemented under the joint venture ownership structure. This model should clearly demonstrate the financial viability of the projects for both the private sector partner and the community cooperative, incorporating details on revenue sharing, cost allocation, and profit distribution mechanisms.

The UN Volunteer will undertake the following activities:

1. Data Collection and Analysis: Gather necessary data related to solar mini-grid projects, including capital costs, operating expenses, energy demand projections, tariff structures, financing options, and community demographics. This will involve collaborating with the project team, private sector partners, and community representatives.

2. Model Development: Develop the two financial models as described above, ensuring clarity, accuracy, and user-friendliness. The models should be built in a widely accessible software platform (e.g., Excel) and include detailed documentation and user manuals.

3. Scenario Analysis and Sensitivity Testing: Conduct sensitivity analyses to assess the impact of key variables on project viability, including variations in energy demand, tariff rates, and capital costs. Develop different scenarios to reflect potential risks and opportunities.

4. Capacity Building: Provide training and support to FREF staff and community representatives on the use and interpretation of the financial models.

5. Reporting: Prepare regular progress reports and a final report documenting the methodology, assumptions, and findings of the financial modeling exercise.

6. Collaboration: Work closely with the supervising international consultant and the FREF UNDP Project Manager to ensure alignment with project objectives and timelines.


Required Deliverables will be as follows:

1. Inception Report: Outlining the detailed work plan and methodology for the assignment. (Within 1 week of commencement)

2. FREF Fund-Level Financial Model: A fully functional and documented financial model. (Within 6 weeks of commencement)

3. Site-Specific Financial Model (Joint Venture Model): A replicable and adaptable financial model template. (Within 8 weeks of commencement)

4. Training Materials and User Manuals: Documentation for both financial models. (Within 9 weeks of commencement)

5. Final Report: Documenting the complete assignment, including methodology, findings, and recommendations. (Upon completion of assignment)