OASYS South Asia International Workshop on Financial and … · 2018. 6. 21. · Solar Power : 50...
Transcript of OASYS South Asia International Workshop on Financial and … · 2018. 6. 21. · Solar Power : 50...
International Workshop on
Financial and Institutional Challenges of
Off-grid Electrification
October 16, 2012
De Montfort University, Leicester
OASYS South Asia
Renewable energy mini grids – Indian experiences
Debajit Palit
Associate Director and Fellow
The Energy and Resources Institute, New Delhi
Email: [email protected]
What is TERI
A not-for-profit technology research and policy think tank; Established in 1974 in New Delhi; More than 1000 professionals, with centers spread across 5 cities
in India; Overseas presence in London, Washington DC, Tokyo, Dubai and Addis Ababa
Working Areas • Energy & Power • Regulatory practices • Habitats and transport • Environment • Water and NRM • Climate policy • Bio technology • Social Transformation
Addis Ababa *
People lacking access
Source: World Energy Outlook 2011
Number of people lacking
access to electricity
Number of people relying on
traditional use of biomass
for cooking
Africa 587 657
Sub-Saharan Africa 585 653
Developing Asia 675 1937
China 8 423
India 289 855
Other Asia 378 659
Latin America 31 85
Developing Countries* 1314 2679
World 1317 2679
Indian National RE Progress (2005-11)
89.86% of targeted un-electrified villages (120000) have been electrified (around 95% of total villages electrified);
60.95% of electrified villages (350 000) intensified;
74% of the targeted 23.3 million BPL households electrified;
103 079 rural electricity distribution franchisees in place
Around US$ 5312 million spend for rural electrification
Miles to go…. • Huge gap between access to electricity (as per RGGVY definition)
and actual connection of households • 74 million hh without connections ~ 45 % of total hh • Poor availability of supply in the connected areas (~ 8.3% av deficit)
Rural Electrification Framework in India
Mini-Grids in India
Pioneer of Mini-Grid system
First solar mini grid commissioned in 1996 in
Sunderbans Islands
State-of-the-art system designs & use of components
(converters & inverters), continuing till date
Cooperative model of service delivery
Involvement of local community from planning stage
Policy enablers from time to time
Around 5000 villages covered through mini-grids,
serving more than 50,000 HHs
Multiple technology adopted
Technology Transition
WIND HYDRO
GRID
Stand-alone Solar
Systems
Mini Hydro
Biomass
Wind
+ Solar
Solar Mini-Grid
1980 …… 1996 ……. 2010 …….
Smart Mini Grid Mini Grid
Why mini grids in India
Technically, mini-grids are preferred for remote areas
over other options such as solar home systems,
as mini-grids provide electricity services for lighting
& for powering various appliances, whereas SHSs
typically provide only lighting services
Can support small productive applications
Organisationally, managing mini-grids are easier compared
to individual systems due to their centralised operation
through a proper institutional arrangement
Solar PV Minigrid
Source: CREDA and TERI
Control Room, Battery Bank, Grid
Source: TERI
Biomass Gasifier Power System
Fuel Preparation
Biomass Gasifier
Cooling cleaning train
Engine – Alternator
Biomass drying
Power evacuation
Source: TERI
Managing Mini Grids: Earlier Model
FUNDING AGENCY
PIA
Power Plant VEC
System
Supplier
Consumers
Consultant (DPR, system
design, TA support)
Organize VEC
System Engineering.
System Owner
$
Installation &
Commissioning
• System custodian
• O&M
• LT line Maintenance
Electricity
Grant from Central Government
Equity by PIA/NGO or Beneficiaries
Revenue: Tariff,
billing, collection
Village Energy Committee (VEC) Model
Source: TERI
Lessons from early Mini grids
Decentralized, usually low
capacity, covering remote
areas
Usually domestic loads
served
Community as stakeholder
Tariff based on flat rate,
locally decided, depending on
fuel cost, O&M cost and WTP
(~ US$ 1 per point/month)
Non commercial in nature
Inability to meet increased
demand
Low plant load factor
Single energy resource catering
to fixed load for fixed time
Battery – Vulnerable, over drawl
by most consumers
Difficulty in O&M because of
remoteness
Limited technical knowledge of
VEC – frequent system
shutdown
Not linked to any productive
enterprise / irrigation pumpsets
Hybrid System
55 kW Solar and 3.5 kW Wind Electric
Generator based hybrid system
Wind Diesel Hybrid system
Source: TERI
Managing Mini Grids: Addressing low load
Source: TERI
Mini Grid – Private Sector
Husk Power System A for-profit entity - identifies suitable villages, builds the electricity supply, and
arranges for operations and maintenance, with the help of local partners.
Equity investments
Subsidy (optional)
• Generates, transmits and distributes
electricity
• Trains local people to operate gasifiers
• Negotiated tariffs
• Billing and revenue collection
• Grievance redressal
Equity
Investors
MNRE
Husk power
Systems
Consumers
Sells electricity on
light point basis
Technology
partner
Design,
I&C
Sign contract
with HPS
Coverage ~ 80 villages, 33 kWe systems,
300-400 households in a village
Tariff: ~ US$ 3/month/HH for 2 lights, 4hrs
Synergies created for co-benefits & viability
Solar Power : 50 households connected from 400 Wp
of solar panels. Panels are installed on the rooftop of a
village house at a central place in the village.
Battery Bank: 24 V 100 Ah of storage capacity.
Batteries are stored in a cabinet inside the same house
or distributed battery storage at HHs
Power Distribution: DC distribution lines run along the
rooftops from the battery bank to households within
the village. Power is distributed for 5-6 hours each
night at 24 volts.
LED: Each household having 2 or 4 LED lamps
Solar DC micro grid – New Development
Community vs. private sector led model
High sense of ownership and accountability
High probability of replicability and scalability
Better equipped to deal with local social problems
Competition and cost cutting goals encourage innovation
Tariffs are set based on ability to pay; tariff subsidy critical for success
Tariffs are set keeping in mind the financial viability of the project
Collection efficiency is usually low
Fragmentation of responsibilities
between operator and revenue
collector have shown better results
Collection efficiency is relatively better;
smart/pre-paid metering to check theft and pilferage
Capacity building is the very pre-condition for success of the project
Need for ‘socially motivated entrepreneurs’ to get into such a business
Poor revenue management Revenue management is better
Cluster approach more successful both in terms of O&M
Poor in handling social issues or poor grievance redressal mechanisms
Poor in dealing with technical matters Often produces inequitable outcomes
Providing access to population earning much less
than 1$/day!
Remote, tribal communities without cash disposable
income!
Subsidy vs financing – affordability ?
Subsidy for capital infrastructure
ensuing operational sustainability improved
quality of life
Mini Grids in Chhattisgarh
Demographic & physiographic attributes
Population : ~ 25 million
SC & ST population : about 43.4% of total population (national average ~ 24 %)
Rural-Urban ratio : 80: 20
Forest area : 44% of the total area (national average ~ 21 %)
All these have bearings on rural electrification
History of Rural Electrification
Creation of Chhattisgarh in 2000
Division of responsibility : CSEB & CREDA - CSEB - grid based rural electrification
- CREDA - off-grid renewable based electrification
CREDA made responsible for electrification of 2200 remote villages
Unique situation - there exist “ energy poverty in the midst of plenty
State has surplus power (e.g. 1.7 % energy surplus), however remote villages are un-electrified
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Street lighting system (Nos.) 18000
Home lighting system (Nos.) 7233
Solar lanterns (Nos.) 3192
Solar power plants (KWp) >1400
Solar cooker (Nos.) 37464
Source: CREDA & Central Statistical Organization (CSO), GoI, 2012
Solar PV in Chhattisgarh
CREDA has reportedly electrified around 35,000 households
through renewable energy based mini-grid
Village Kouhabehra Rawan Mohda Latadadar Murumdeeh Surka Sapalwa
Year of
commissioning
2003 2004 2004 2004 2003 2007 2005-06
Capacity of the
plant (kWp)
3 7 4 3 5 4 5
Total number of
HHs
50 72 72 45 46 50 83
Supply duration
(hours)
6 6 6 5 6 6 6
Profile of surveyed projects
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25
Some glimpses
Solar mini-grid model of CREDA
Financing
Capital cost ~ 25000 INR (500$) per household
Capital subsidy - 18,400 INR (368$) per HH – by MNRE
- Balance by state government
Tariff per connection = 30 INR/0.6$ (2x11 W CFL)
Tariff subsidy (by state government) - 25 INR (0.5 $) per HH connection
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3 tier Maintenance System
Comprehensive Annual Maintenance Contracts (CAMC)
Three tier system of maintenance
- Project level – operator
- Cluster level – cluster technician
- For multiple clusters – Cluster supervisor
Parallel supervision by CREDA staffs
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Partners
(Group)
Skills
(Organize)
Allocate
(Load)
Service
(Delivery)
> Install
> Operate
> Maintain
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H V
V
V
V V
V
V
V
V
V V
V
H : Service Hub
( Base station )
-Technician / Helper
- Spares / Consumables
V : Villages in the Cluster
Village Cluster
-15 Villages
- 50 Customers / Village
…..The “GOLD” Model Cluster Based Service Delivery
CLUSTER based Service delivery
Total Number of villages covered 150
Revenue / month Expenses / Month / cluster
No. of Villages / cluster 15 NosRate Rate
No. of Customers / Village 50 Technician 1 8000 8000
Total No. of Customers / cluster 750 Helper 1 3500 3500
Collection per Customer 35 Conveyance 1 3000 3000
- Through CREDA 25 Others 1 1000 1000
- Direct 10 operators 15 700 10500
Total collection / cluster / month 26250 Expenses / month / cluster 26000
Total AMC collection / cluster 315000 Expenses / year 312000
No of clusters 10
Total collection under CBSD 3150000 Expenses / year 3120000
Financials
Source: CREDA
Key factors for success
Top-down approach /Organized delivery model
Driven and implemented by CREDA with support from state government & MNRE
Commitment and enthusiasm across all levels of CREDA
Opposed to popular approaches “let the community handle” - Each entity sticks to what it does best
Effective maintenance (post implementation)
Fruitful partnership between CREDA and System Integrators
Structured communication channel between CREDA and contractors
Strong govt. support and political will
Maintenance subsidy of Rs 25/household (benchmarked to household’s expenditure on kerosene & Ekal batti Yojana)
Strong political leadership
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Key factors for success contd…
Creating an eco-system for solar electrification Solar shops Support to local manufacturing and development
Modular training and capacity building Different for different stakeholders depending on
need and requirements Learning from doing
Transition from ACMC to long-term CMC Introduction of fully commercial model in select
locations
Key Lessons
Service delivery models are to be structured
considering the uniqueness of the region within which
the plant is to be installed -Today off-grid, grid-
connected tomorrow
Decision on technology should be based on availability
of the technical know-how and skill-sets of local
people;
Contrary to prescribed models of off-grid
electrification, top-down approach/organized
structure seems to be working better than community
model
Key Lessons contd….
Designing variable tariff structures considering both
ability to pay as well as operational expenses
Access to electricity is merit good
Need to build local capacity and adopt clustering for
effective maintenance & viability of operation
Strong regulatory & policy regime supports
development of projects – Viability gap funding/
Results based aid
Framework for Mini Grid
Level 1- Basic needs • Lighting
• Communication • Cooking • Heating
Level 2 - Productive uses
• Agriculture (water pumping, mechanized tilling etc.)
• Public health centres
• Education (Schools, tu ition centres etc.)
• Street lighting
• Sewing, cottage industries • Grain grinding
Level 3- Modern society needs
• Modern domestic gadgets
and appliances for space cooling, heating etc.
• All productive applications for
24/7 usage • Transport
Small scale RETs
Ideal for isolated and vulnerable communities
Facilitate
Village-scale mini-grids Ideal for larger or more
developed villages
Facilitate
Mini-grids coupled the main grid
Ideal for cluster of
villages
Facilitate Creates the
market for mini-
grids
Could develop
into
Access + Availability + Quality + Sustainability
Ecosystem (AAQS)
Appropriate Technology
Innovative Financing
Local Skills
Enabling Policy
Not ‘how can we make community use the
mini-grid technology’, but
‘how can more & more people get access to and
sustainably benefit from this technology’
In conclusion
2012: International Year of
Sustainable Energy for All
Let us together make a change