Energy Access in Remote Areas Are Micro & Pico Grids Workable ?

1. Energy Access in Remote AreasAre Micro & Pico Grids Workable ? Presented By: Ashok Madhukar & Shweta Agarwal Afro-Asian Development Consortium New Delhi August 7, 2014

2. Micro & Pico Energy Grids • Remote areas either do not have access to energy or totally unreliable supply systems • Poor quality of life due to lack of energy infrastructure and resultant opportunities for income generation / livelihood Workable? • Micro and Pico grids are the only workable option for remote areas for generation and distribution of energy and environmental management • We need to understand the system constraints of all the stakeholders and their removal/reduction • Design Structural and Operational Sustainability Afrodev

3. EngineeringSustainability Need: Demand Driven Ownership & Participation SUSTAINABILITY Program/ Project Design & Delivery Resources HR & Funds Afrodev

4. Lessons Learnt :Remote Area • Need Identification • Few people want to go there : organizations ability to reach out is low • Funding for need assessment and appropriate project design • Feasibility study costs more than the project- strange but true • Delivery Capacity • This situation encourages local cartels who deliver: Substandard work, charge multiple times, have little or no capacity for O&M support • Urgent need to build the last mile local delivery capacity Afrodev

5. Lessons Learnt :Remote Areacontd… Higher Cost of Acquisition leads to; • higher cost recovery • ability to pay drops Lessons Learnt : • Build Core Teams/ Contractors locally for the design, development, implementation , operation & maintenance and monitoring of the project. • Funding for the needs identification, project design and development with the community acceptance and participation: generally about 10% of the project Afrodev

6. EmpowermentRE: Dual Contribution Renewable Energy Dual Contribution SOCIAL INFRASTRUCTURE Power & Fuel LIVELIHOODS Income Generation Activities OUTCOME Improved Quality of Life AVAILABILITY Sustained ACCESS Ability to Pay Afrodev

7. Program / Project Design Structural Design is critical for Operational Success • Structural • Stakeholders Commitments • Community Ownership • 360 Capacity Building • Understanding • Each link is critical • Start Up Support • HR • Funds • Operational • O&M Local Capacity • Local Participation • Cost Recovery • Ability • Willingness Afrodev

8. Local Communities • Identification of needs / opportunities: • Acceptance and help of the local community for the surveys and information collection • Willingness of the Community: • Ownership: Accept the project • Participate in the project development • O & M local entrepreneurs and build capacity • Share in the cost of services used “Partners in Progress” approach needed with the community rather than “Beneficiaries” Afrodev

9. Missing Link: Intermediaries • Role of NGOs • Community mobilization and capacity building • Primary need assessment • Implementation support • Operation and Management • Cost recovery for services • Local Delivery Mechanism • Agencies for design and development of the projects • Implementation • O& M handholding • Local Entrepreneurs and operators training • Local Monitoring –Core Teams • Capacity Building • Benchmarks • Trends • Course Correction and sustainability Afrodev

10. Delivery Mechanisms • Who will implement? : Intermediaries • NGOs- community interface • Local Contractors- build and maintain • Capacity Building: • Is there capacity to implement • Develop and Design the local project • Express the need and seek agencies • Standardization & Replication: • Cost of design on case to case basis is more than the value of the intervention itself • Time Taken: • Uncertainty is the greatest barrier • Staying power: mental and financial Who is investing in the delivery mechanism creation and its capacity building ???... Afrodev

11. The Realty Check • Reality is that there is more money but less projects and even less understanding of the project implementation capabilities of the organization and its intermediaries • Organizations have the funds but do not have projects to fund in line with their mandates • LAD: Demand Driven/ Supply Side interventions: • Assisted demand driven is the answer • Inventory of local needs / projects • Adopt a Village- best holistic approach and replicable Afrodev

12. PROJECTS : Key Actions • Simplification • Standardization • Replication Afrodev

13. CSR - The Road Ahead • Inventory of projects that can be funded by CSR • Compatibility Matrix: geographies and domains/sectors • Capacity Building of Organizations for CSR: • Funding Projects • Program Design • CSR Funding Process: • Awareness • Standardization • Transparency • CSR Attitude: • CSR to pro-actively seek projects • Not behave as another agency doling out funds to beneficiaries Afrodev

14. Strategic Approach: LAD Mawlyngbna, Meghalaya • Village Profile : • Altitude : 1200 m • Precipitation of 8000-10000 mm • Monsoon Period-6 months • Population < 2000 ( 90% engaged in farming ) • Households 350 estimated • Cluster of: • 4 villages total • 750-800 households • 3000+ population • Provide Energy for: • basic primary processing for agriculture produce • community buildings and street lighting and communication Afrodev

15. Strategic Approach: LADMawlyngbna, Meghalaya Economic Activity: The interventions are focused on value addition to the local produce for higher economic activity and jobs in the village area and include: • Warehousing • Drying, Cleaning & Grading • Animal Feed • Waste Management Organic manure • Potable Water Pico Energy Interventions: • Pico Hydel Power 10Kw • Bio Mass Gassifier 10 kw • Heat Recovery for drying agri-produce • Solar PV system - 5 Kw • Bio Gas for Heat Energy Afrodev Note: Combination supports the seasonal and day / night needs of the community

16. Strategic Approach: LADMawlyngbna, Meghalaya • Pico-Hydro Power Plant 10 KW • Land contributed by the community • Support the need for power primarily during monsoon period and supplement the existing supply which is not reliable and intermittent • Provide convenience for street lights and lighting of community building Impact Economic - higher revenue realisation from agriculture produce Social - Improved quality of life , self reliance & equitable distribution Sustainability Village ownership and participation is integral to this community as demonstrated in other initiatives Afrodev

17. “Let us continue the journey towards Sustainability and Inclusive Growth” Afrodev