sunil dhingra - renewable energy and the minigrid, the indian experience
TRANSCRIPT
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Session 3: Energy Services:
Rural Electricity
Barriers to and Incentives for PromotingRenewables
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India: Renewable Energy and the Minigrid,
The Indian Experience
Sunil Dhingra, Senior Fellow,
TERI, New Delhi
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About 42,000 villages (7%) in the country still remain unelectrified.
Nearly 33% of rural households mainly in rural India are withoutelectricity access (Census 2011)
Rural areas face major challenges of low per capita consumption and
inadequate power supply
In the last decade, electricity generation increased by 60%
But increase in access to households increased by only 23%
Average annual per capita consumption of electricity is 632 kWh
compared to China (900 kWh), Thailand (1,500 kWh) and Malaysia (2500
KWh)
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Rural Electricity Access
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Rural Electrification Initiatives of GoI
The Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY),
launched in April 2005 aims at: Grid Extension(2005)
Electrifying all villages and habitations
Providing access to electricity to all rural households
Providing free-of-charge connections to Below Poverty Line (BPL) families
Off-grid through renewable sources in rural areas Decentralized Distributed Generation (DDG) Program under RGGVY MoP:
Capital & operating incentives to off-grid distribution generation projects
in villages without grid connections
Remote Village Electrification Programme by implementing renewable
energy projects in offgrid decentralized mode at the locations where
extending grid electricity have been deemed unsuitable (economically or
technically).
Village Energy Security Programme through biomass based system
State specific DRE initiatives (Chhattisgarh, WB, Orissa) To cover remote
villages
Other initiatives (TERI, SELCO, DESI Power, Husk Power etc..)
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Provisions under different Programs
Components RVEP VESP DDG
Eligibility
condition
Village population
100 households
Physical
target/Launch
Year
10,000 remote
villages (2002-03)
200 remote and
inaccessible villages
(2005)
No clear target
(2009)
Achievement 9,009 remote
villages
700 kW capacity, 79
projects sanctioned
283 projects sanctioned
Ministry MNRE MNRE MoP
Technology
preference
95 % projects SPV Biomass and
bioenergy
No preference
Energy
applications
Lighting Cooking, lighting &
motive power
Lighting and productive use
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Contd. Provisions under different Programs
Components RVEP VESP DDGImplementing
agency
SNA Govt. dept., NGOs SNA, identified CPSUs, SEBs
Financial
arrangement
Min(90 % of capital
cost, benchmark
cost) and balance
by State Govt
Grant up to 90 % of
the project cost
And balance by
State Govt
90 % of the project cost as
subsidy and balance 10% as
loan or Grant from State
Govt
Management Community Community/NGOs Private
developers/Community
O & M 5 year grant for
annual
maintenance
contract with
supplier
Min(2 years O&M,
10 % of project
cost)
Viability gap between O&M
and revenue generated
funded for 5 years (upto 8%
project costs)
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Glimpses of off-grid Rural Electrification projects in India
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Main Barriers
Policy and
Regulatory
Competition fromconventional grid
Tariff Subsidy under GridExtension Program
Higher tariff charged to off
grid users compared to gridelectricity tariff
No clarity on status ofstand alone plants oneventual arrival of grid
Inadequate support underviability gap fundingmechanism
Poor response from statesand project developers.
Lack of programs toimprove economicbenefits and productivityfrom modern energyaccess
Technology and
Financial
Lack of capacity, training,technical assistance, andcapacity buildingframework
Inadequate capacitybuilding of local operators
Enabling infrastructureweak in the state
Institutional
Weakest link in many ofprojects with less uptimedue to absence of projectownership
Poor Maintenance andservicing of equipment
Long term fuel supplyarrangements in case ofbiomass
Monthly tariff realizationchallenge on continuousbasis
Absence of role clarity
between differentstakeholders
Capacity and Skill
High cost of generationdue to load factor issues(low PLF)
More finance, from manysources and in manyforms needed: with
solutions matched toparticular challenges, risksand returns
In general, off-gridconnections less attractiveto the private sector aslow financial returns
Grid integrationconstraints
Lack of technologicalexpertise at local level
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Key Learning in providing access to off-grid
areas:
Community owned and managed to Entrepreneur/Franchisee basedmodel
Incubate enterprise models through the application of soundtechnological, environmental and market practices
Institutional Model
Move from Upfront capital grant based to Performance linked
Innovate business solutions that can create livelihoods, meet basicneeds and realize environmental benefits on a large scale
Financing
Need to improve the technology standard both energy andenvironmental performance of existing technologies
Institute support service mechanisms to ensure viability and long-term sustainability
Technology and Service
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Two stage biomasgasifier for electricity
generation
Study the energy poverty,inequality across income
class groups and betweenregions
Biomass and Solar basedpoly generation system(electricity + cooling)
Setting up Solar chargingstations, entrepreneur basedbusiness model, total 800 kW
biomass gasifiers system
TERI Initiatives
Rural Electricity Access
Rural energytransitions
TechnologyDevelopment Dissemination
LABL, biomassbased electricitysystems
Knowledge exchange, technology transfer and marketdevelopment
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Innovating at LaBL
Continuous improvements in solar
lantern designs with reputed
technology partners, driving down
cost, improving efficiency & quality
Charging stations expandable tosolar energy hubs, providing
services like water purification,
mobile & battery charging
Technical Resource Centres, anafter-sales service network for
responsive repair services through
local community representatives
Innovations in LaBL
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370 000lives
impacted
1486 villages
covered
> 1500green jobs
created
75 000 solar
lanterns
21 States
5 countries
> 60NGOs
involved
Journey so farJourney so far.
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In Sum: Energization based on renewable sources of remote areas is not an easy process: it
requires sophisticated approaches and long-term planning
Projects must adapt to local conditions; across different income groups in differentregions, the mobilization of local communities is essential.
Promotional aspects of Renewable Energy based Rural Electrification policies
Need for additional policy and regulatory mechanisms to delink the project financialviability from the high consumer tariffs being levied on the offgrid consumers.
Compliance related aspects of Rural Electrification projects so that a greater diversity ofmodels, many of which have been demonstrated by different agencies are able to findspace, benefit from and influence policy through good practices.
To address specific Stress Points in policy, such as:
Problems faced by project developers amongst which, for example, dialogue betweenDRES plant owners and state DISCOMS is an urgent need
DRES grid interconnection to the local LT Network
innovative business models that could be supported under a more conducive policyenvironment
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Thanks for your kind attention
Contact: [email protected]
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