Implementation strategies and models for rural electrification using renewable energy technologies

1. Implementation strategies and models for rural electrification using renewable energy technologies Akanksha Chaurey TERI August 27th 2003

2. let us examine.. • is rural electrification an attractive business proposition • if, yes, are there successful models for doing business generally ‘No’ , in specific cases ‘Yes’

3. generally ‘No’ , in specific cases ‘Yes’ Either demand is not there or supply options are not viable Grid, grid based Supply options match the demand Distributed generation technologies Alternate delivery schemes

4. Models where supply services have matched the developmental requirements • Micro-privatization • Distributed generation • localized network • village committee • E agent/ ESU/ E enterprise • Alternate delivery scheme • Member of local committee • NGO/CBO

5. Micro-privatizationlocalized network • Maximizing the local content on the demand side • Innovative business approaches on the supply side • Combination of subsidies and micro-credit for financial sustainability • Institutional strengthening by setting up appropriate linkages • Capacity building and enhancement

6. Project design and boundaries

8. WBREDA/OREDA technical consultant EPC contractor Setting up of power plant Responsible for Generation of electricity Accountable for Sub-contract Trouble free operation of the power plant Responsible for Operation and maintenance contractor Linked through power purchase agreement

9. Linked through power purchase agreement • Laying of distribution network • maintaining the network • evacuation & distribution of electricity • availability of energy efficient and end-user appliance Responsible for Local enterprise Accountable for Sale of electricity & revenue collection Accountable for • Individual consumer accountability • control of theft of electricity • consumer complaint redress Responsible for Village committee

10. Economic growth of the village Accountable for • Awareness on usage of electricity • Training and facilitation for enhancing income • Marketing channels for finished products Village committee Responsible for Other developmental funding NGO Gram Panchayat

11. Energy agent/ Energy service unit (ESU)/ Energy enterprise energy service for the people, by the people • ESN establishment and umbrella brand • Decentralization of access to technology • Customization of technology -local needs • Facilitating access to credit • Capacity building of stakeholders • Repair and maintenance infrastructure

12. Manufacturers Supply of batteries, CCUs & luminaires TERI Supply of panels E S N Entrepreneurs Promote RETs Dealers NGOs Market RETs Service RETs Sub-dealers/ Retailers SHGs Facilitate rural credit Rural Banks Customers

13. Distributed generation scheme • Facilitates • Minimum electricity needs • Dispersed productive activities • Increased demand for electricity in the region • Inadequate for • Productive activities requiring motive power Small-scale RETs Ideal for isolated and vulnerable communities May lead to... • Facilitates • Greater community welfare (health, education, telecom, etc.) • Rural industry • But is still constrained by • Lack of innovative financing • Limited power supply, particularly with RET-based schemes • Unresolved regulatory issues and market penetration barriers Off-grid village-scale DG (or minigrid) Ideal for a larger village or a cluster of villages Could develop into... • Facilitates • A market orientation for rural electricity provision, with adequate regulation • Diversification and growth of industrial and other economic activities • Long-term grid interconnectivity and system stability Network of DG schemes connected to a localized or main grid Ideal for villages in a region