OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing...
Transcript of OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing...
![Page 1: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/1.jpg)
Proceedings of the Green Mini-grid Development in South Asia
i
OASYS SOUTH ASIA Workshop
May 28, 2014
Proceedings of the
Green Mini-grid Development in South Asia:
Enabling energy supply to rural areas through mini-grid solutions for economic
empowerment
Venue: United International University, Dhaka
Organised by TERI, New Delhi and United International University, Dhaka
![Page 2: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/2.jpg)
Proceedings of the Green Mini-grid Development in South Asia
ii
Produced by
The Energy and Resources Institute
New Delhi
Published on 15th August 2014
![Page 3: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/3.jpg)
Proceedings of the Green Mini-grid Development in South Asia
iii
Acknowledgement
The activities reported in this report are funded by an EPSRC/ DfID research grant
(EP/G063826/2) from the RCUK Energy Programme. The Energy Programme is a RCUK cross-
council initiative led by EPSRC and contributed to by ESRC, NERC, BBSRC and STFC.
Disclaimer
The views expressed in this report are those of the authors and do not necessarily represent the
views of the institutions they are affiliated to or the funding agencies.
![Page 4: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/4.jpg)
Proceedings of the Green Mini-grid Development in South Asia
iv
Table of Contents
ACKNOWLEDGEMENT .............................................................................................................................III
DISCLAIMER ...............................................................................................................................................III
BACKGROUND ....................................................................................................................................... 1
SUMMARY OF SESSIONS ................................................................................................................. 1
INAUGURAL SESSION ....................................................................................................................... 2
SESSION 1 : LESSONS FROM GREEN MINI-GRID EXPERIENCES ............................... 4
SESSION 2 : THEMATIC DISCUSSION ...................................................................................... 9
PANEL DISCUSSION: SCALING UP GREEN MINI-GRID PROJECTS IN SOU TH
ASIA ........................................................................................................................................................... 13
ANNEXURE I: PROGRAM SCHEDULE ...................................................................................... 17
ANNEXURE II : LIST OF PARTICIPANTS ................................................................................. 19
![Page 5: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/5.jpg)
1
Background
As part of a series of workshops organised by the OASYS South Asia Project, TERI
organised a Workshop on Green Mini-grid Development in South Asia, on May 28, 2014 at
the United International University, Dhaka. This workshop, the 6th South Asia annual
workshop of the multi-partners OASYS project, led by De Montfort University, was
organised in collaboration with the Centre for Energy Research of United International
University, on the occasion of the 3rd International Conference on the Developments in
Renewable Energy Technology organised in Dhaka from May 29-31, 2014. The workshop
focused on examining the barriers and solutions to sustainable, large-scale implementation of
green mini-grids in rural areas of developing regions that currently lack access or have
intermittent access to modern electricity solutions, based on experiences from the field. The
workshop saw active participation of over 80 stakeholders from the government, industry,
financial institutions, regulatory bodies, academic, research institutions and practitioners.
Summary of Sessions
Excluding the inaugural session and the concluding remarks, the workshop comprised of
three sessions wherein the first session highlighted the lessons and experiences from implementation of green mini-grids across the South Asian countries as well as from few
other developing countries from Africa and Latin America. The second session was a
thematic discussion consisting of operation, maintenance, financing, policy and regulatory issues of mini-grids, which was followed by participants brainstorming on prevalent
challenges, the barriers and possible solutions regarding the themes. The third session was a
panel discussion on the theme of Scaling up green mini-grid projects in South Asia, moderated by Mr Amit Kumar, with panellists from the Bangladeshi Ministry of Power, The
World Bank, International Finance Corporation, IDCOL and Rahimafrooz Renewables.
![Page 6: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/6.jpg)
Proceedings of the Green Mini-grid Development in South Asia
2
Inaugural Session
Mr Shahriar Ahmed Choudhury, Director, Centre for Energy Research, started the proceedings welcoming all the speakers and guests and highlighting the genesis of the mini-
grid workshop and the International Conference on the Developments in Renewable Energy
Technology. Mr. Debajit Palit, Associate Director, TERI then presented the research objectives and outputs under the OASYS Project. He talked about multi-dimensional analysis
framework of carrying forward the OASYS Project through Academic Research, Action
Research, Knowledge Sharing and Policy Research. He further mentioned about various Work Packages consisting of study on in-depth analysis of off-grid delivery option;
assessment and selection of appropriate business models; demonstration in India; scaling-
up, replication and mainstreaming of models and, recommendations. The presentation also
threw light on OASYS achievements so far in terms of demonstration projects, publications
and workshops and discussed the way the demonstration projects will take shape in the
future course of the OASYS Project.
This brief description was followed by a keynote address by Prof Dr. M. Rezwan Khan, Vice Chancellor, United International University, Dhaka. Prof Khan in his presentation discussed
the challenges and opportunities of solar mini-grids in Bangladesh and said that renewable
energy policy of Bangladesh should provide more focus on off-grid systems as its effect will reach the people in remote areas and can have tremendous impact on the rural economy. He
also shared the critical aspects of AC and DC mini-grids and opined that DC mini-grids may
be more appropriate as they are technically robust and cost-effective which are critical for
scaling-up any interventions.
![Page 7: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/7.jpg)
Proceedings of the Green Mini-grid Development in South Asia
3
Thereafter, the inaugural address was delivered by Mr. Tapos Kumar Roy, Additional
Secretary, Ministry of Power, Energy and Mineral Resources, Govt. of Bangladesh, who was the Chief Guest at the event. He mentioned that Bangladesh is establishing the Sustainable
and Renewable Energy Development Authority to pave the way for institutionalizing low
carbon sector development. Also, solar mini-grids have been identified as one of the important utility scale interventions as part of the Bangladesh’s 500 MW solar power
development programme. Mr. Roy also talked about how Government of Bangladesh has
planned to support solar mini grids and also made future commitments to explore wind power based mini grid as a clean energy option.
Followed by inaugural address was an address by the special guest, Mr. Mahmood Malik,
Executive Director and CEO, IDCOL. Mr. Malik mentioned that while IDCOL has been mainly supporting solar home systems and has financed more than 3 million systems,
recently they have also started promoting installation of mini-grids in remote densely
populated islands and has set a target to finance 50 mini-grid projects by the year 2017. He talked about the role of NGOs and private entities in operating mini grids and suggested
measures to overcome the barriers in implementing these mini-grid projects.
![Page 8: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/8.jpg)
Proceedings of the Green Mini-grid Development in South Asia
4
Session 1: Lessons from Green Mini-grid
Experiences
Chair: Mr. Amit Kumar, Adjunct Professor, TERI University, New Delhi
The first session began with Mr Amit Kumar highlighting the importance of renewable energy based mini-grids for enhancing energy access in the South Asian region. Reiterating
that conventional grid extension is unable to serve large population, there was an urgent
need to complement the same with RE based mini grids. He shared field experiences of
renewables based mini grid work in India. Particularly talking about TERI’s initiatives, he
talked about their focus on going beyond providing energy access but rather weaving
energy-based livelihood activities around them. He urged the session speakers to share their experiences in mini-grid based socio-economic development of the rural populace. He then
introduced the speakers and requested Ms. Asma Huque, Managing Director at Prokaushali
Sangsad Ltd., Dhaka to deliver her presentation. Ms Huque started her presentation by sharing the experiences and lessons gained from the case study of 100 KW Solar Mini-Grid
in Sandwip, Bangladesh, which is the first mini-grid project in Bangladesh. She talked about
the points to be looked after or the key determinants for commercial and physical operations of mini-grids as well as the maintenance aspect of it. While looking at the commercial
operations of a mini-grid, she touched on the aspects such as new connection procedures,
consumer training, meter training, bill collection and prepaid meters. She mentioned the
factors to be looked at while dealing with physical operations like preparing schedules and
procedure for planned maintenance, system software update, looking out for abnormal
![Page 9: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/9.jpg)
Proceedings of the Green Mini-grid Development in South Asia
5
signs and being prepared for natural calamities and emergency situations. Also, the safety
procedure is also an important aspect while looking into physical operation. Ms. Huque also discussed in detail on the operation and maintenance of five main components of the mini
grid namely – solar modules, inverters, batteries, generator and distribution system.
Mr. Sanjay Kumar Sharma from Alternate Energy Promotion Centre, Kathmandu,
highlighted the role of Government in developing and promoting renewable energy
technologies. He shared the achievements of Alternative Energy Promotion Centre (AEPC) in Nepal in terms of significant growth of micro and pico hydro plants installed. He held
government focus and policy support as a key element to the success of hydro based mini-
grids. Under this, he mentioned some of the other elements that had aided in success of hydro mini-grids in Nepal such as formation of separate entity of AEPC that provided
technical support as well as financial assistance to the communities. Also, the government
made a relaxation of no licenses for the plants upto the size of 1000kW. The other important contributing factors aiding in success of micro hydro plants in the region as discussed by
Mr. Sharma are the community based micro hydro mini-grids where the developers /
owners(community representatives themselves) of the system aware the communities and involve them from the project proposing stage, planning, financing till project
implementation, operation and maintenance. Also, there is a strong institutional base of the
private sector in conducting detailed feasibility studies and manufacture/install domestically built and/or imported hydro mechanical and electromechanical plant and
equipment that attributes as one of the key success elements. He also touched on the aspects
of quality control and marketing which consists of Technical Review Committee (TRC) to conditionally qualify a project for support and Rural Energy Fund (REF) to provide final
approval based on documentary evidence of resource matching and Power output and
household verification (POHV) test.
He also discussed about the challenges faced regarding the construction and operation of the
plant. The major challenge being the financial constraint in terms of procuring gap funding and the other impediments in way of system success and scale up can be the abandonment
of plant by the community upon encroachment of the service area by national grid;
inadequate productive end use (overall plant factor being around 25%); cost overrun due to longer project cycle and change in hydrological pattern of rivers over the years. He then
concluded by suggesting a way forward by overcoming such challenges with the help of
political support, favourable policy and subsidy design, reliable data assessment for the identification of feasible project sites, linking the productive use of energy application with
the mini-grid and a significant involvement of financial institutions.
![Page 10: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/10.jpg)
Proceedings of the Green Mini-grid Development in South Asia
6
Mr. Sebastian Groh of Micro Energy International, Berlin provided an international perspective on the renewable energy presence and development. He highlighted mainly
three constraints faced by renewable energy based mini-grids, which are limited capacity;
high capital expenditure (CAPEX) and high infrastructural demand and, difficulty to serve all customer types adequately. He then show cased three case studies in context with that,
one from Tsumkwe, Namibia where high CAPEX, high infrastructural demand and limited
capacity were major constraints, second case study is from Malapascua island, Philippines where the major constraint was high CAPEX and high infrastructure demand but it had the
ability to cater for demand growth with oversized diesel generator and third one is of
Sandwip island in Bangladesh using SHS where major constraints are limited capacity, one-time intervention and difficulties to serve all customer types adequately. He also talked
about the challenges to be met while scaling up a mini-grid such as increase in number of
customers, proper payment system and match supply and demand. Mr Groh was of the view that all those constraints mentioned above results in lack of flexibility in the system to
scale-up. He concluded with the suggestions that mini-grids should be small and flexible to
reduce CAPEX and then gradually increase customers, they should be able to make use of existing resources and there should be adequate demand assessment and tariff adaptation.
Also, the bottom up approach is a good way for dynamic scale up.
The first session ended with the presentation of Mr. Debajit Palit, where in discussed the
experiences from mini-grids implemented in India. In his presentation, he elaborated on the
technical design aspect of solar PV grid, biomass gasifier system and hybrid system that have been implemented in India since the mid-nineties and talked about how to address low
load to manage a mini-grid efficiently. He also highlighted the features, covering operation
as well as maintenance aspect of three kinds of delivery models namely – (1) Community based models under Rural Village Electrification Programme and Village Energy Security
Programme (2) CREDA model with top down approach which is a government funded
model and (3) Private sector Mini-Grid model following a commercial approach that is purely demand driven. Mr Palit also talked about institutional, financing and policy level
challenges which impede facilitating of mini-grid models. He was of the view that scaling
up of mini-grid projects require appropriate support system which should be a mixture of of both participatory approach & top-down approach as opposed to ‘let the community
handle’ approach and also the design should be optimized which adapts to local context. For
the effective maintenance, rather than availing outsourced after sales services, locally skilled people should be put to use. In the end, he provided an insight on the framework of mini-
grid where he showed in different levels of electricity access and how the mini-grid can be
![Page 11: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/11.jpg)
Proceedings of the Green Mini-grid Development in South Asia
7
developed. At level one, small scale renewable energy technologies caters to basic needs
which creates the market for village scale mini-grid at level two, which then can facilitate the productive uses of energy in the region. This could finally be developed into mini-grids
coupled with central grid to suit cluster of villages and caters to modern societal needs such
as modern domestic gadgets and all productive applications throughout the day.
![Page 12: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/12.jpg)
![Page 13: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/13.jpg)
9
Session 2: Thematic discussion
Chair: Prof Dr. A K M Sadrul Islam, IUT, Dhaka
Post lunch the workshop resumed with the session on thematic discussion. The first
presentation was by Prof Peter Adelmann from University of Ulm, Germany who spoke
about the different kinds of batteries and their role in the operation of Solar PV grids. He also
talked about hybrid batteries and how could they be a significant step to improve mini grids
performance and cost effectiveness. He started off with what he called his rough analysis
done in most of the places with regard to improvising mini-grids and was of the view that the
technical reason behind failure of such system is almost always the battery. He explained this
with the case study of solar mini grids installed in 30 islands of Greece. The Greek
government wanted electricity to be cheap here than what people pay in capital city. Most of
the mini grids were set up in a way that they are too small to meet the actual demand as the
demand analysis done before was found out to be highly under estimated and so the systems
get overloaded. The battery keeps getting empty and never gets fully recharged. These
batteries were the Lead Acid (LA) batteries having sulphation process which grow crystals if
do not get recharge from time to time. He said that the electricity was brought to people who
were hungry for energy and in such a scenario the battery remained rather completely empty
than being full. Therefore, he considered LA battery as socially inadaptable to solar energy
application. Next, he talked about Lithium (Li) batteries which perform much better and
have higher cycle life unlike LA batteries which have limited cycle life. By using Li batteries,
storage cost can be reduced and also there is a very much possibility of battery lasting long
like a solar module i.e., over 20 years. The only problem is that Li batteries are relatively
more costly and cost 3-4 times more than LA batteries.
Prof Adelmann then mentioned that answer to what can be done to reduce the initial
investment cost and also not giving up on all the nice features of Li batteries is “Hybrid
Batteries”. Storing solar electricity is a bigger issue than producing solar electricity and the
success of the application depends on the efficient storage capacity. He then talked about an
![Page 14: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/14.jpg)
Proceedings of the Green Mini-grid Development in South Asia
10
intelligent electronic device that was developed in collaboration with Bosch which integrated
the positive features of both LA and Li battery. This battery initial costs, though, is about
40% higher than ordinary LA battery, but two to two-and-a half times cheaper than pure Li
battery. In sunny times, LA battery is given a break and is allowed to get fully charged. He
concluded on the note that in a rural scenario where family uses energy every night, the
battery never gets fully recharged, such hybrid batteries could be one significant aspect to
overcome this obstacle and hence improve the mini-grid performance.
Dr. Peter Boait, Senior Research Fellow at De Montfort University, UK brought out the
issues around balancing the cost and complexity of smart metering in mini-grids. He
mentioned about the availability and requirement of different smart meter solutions for power
and energy limited systems. He began with the power limited systems that do not have
battery by and large, very often biomass or hydro systems, and overload at peak times is the
main cause of the system failure. There becomes too much load to be supported by the
generator, typically an AC generator, resulting in its slowing down and impairment of the
service. He then raised the question that what should be done to manage that in a smart way.
To answer that he gave an example of a Smart Box invention by an American University
(Humboldt State) that uses voltage to detect overload conditions, indicate them to consumers,
and cut off all the power if consumers ignore the overload sign. The drawbacks to this Smart
Box are that the voltage thresholds will vary from one installation to another; cuts off all the
power not just the one appliance causing the overload and might not be suitable for all loads.
So, he was of the view that voltage is not a good indicator for scattered communities and
what works for one appliance may not work for the other machinery. It might be just
sufficient to signal the generator status and to rely on consumers respond. So, in order to
work out such system, voltage has to be calibrated very carefully to each network.
Further, he discussed on energy related systems that consists of typically photovoltaic or
wind systems and battery exhaustion is the main cause of system failure. For the management
of such systems, energy use needs to be managed in a way that battery level does not go
down too low. For this he mentioned two products that manage the energy budget. One is the
Urja Bandhu device that sets up the energy budget for the day and cuts off the power when
exhausted. The second product is Circutor that allows unused energy budget to be carried
forward. But, both these products suffer from some limitations such as both cut-off all power,
Circutor recovers if load falls below trickle charge and Urja Bandhu waits till next reset time
and the energy budget is fixed. Circutor allows some energy budget to be transferred to
another meter. He said that what is really required is to vary the energy budget to suit the
consumer dynamically so that they can fully exploit the energy resource on good days and
use the energy effectively and for commercial purposes as well.
Dr. Boait also focussed on the use of techniques like local Wi-Fi distribution to inform people
about weather conditions so that they can make use of it for the system. Even the income
generating plants can be cut off when batteries are not getting charged, by means of relatively
sophisticated communication which can signal that. He was keen on making people use
technologies like smart phone, tablets through which they can see the status of local grid,
appliances they can use etc. He then mentioned about various other propositions in regard to
![Page 15: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/15.jpg)
Proceedings of the Green Mini-grid Development in South Asia
11
management problem coming from Gram Power, Lumeter Network, Husk Power Systems
and a quite few in Africa which are all very much driven by “Pre-Pay Mechanism” using a
mobile phone network to provide effective connection back to a cloud-based information
system. The local mini-grid system is totally managed from a central platform and the
payment is managed in a standardized way. The advantages to this standardized service are
the lower cost of delivery, fraud elimination and easy scaling up of a business model. But, the
disadvantages are little ability to vary service offer to suit location, culture, priorities; less
local ownership and commitment and reliant on an internet connection that may be lost in
extreme weather. Also, there are concerns about cloud based management regarding whether
it gets local engagement to make a system sustainable. Finally, he concluded by saying that
different smart meter solutions are required for power and energy related system to solve the
battery issues and also better telecommunication is a key requisite to signal system status to
consumers and to stop them from doing things which degrade the battery life and ruin the
economics of the system.
Ms. Farzana Rahman, Unit Head (Investment) of Renewable Energy at IDCOL elaborated the
issues of financing for mini-grids. She mentioned that while considering financing of a mini-
grid project, the factors that come into play are area selection, demand assessment, and
figuring out suitable tariff that will attract the potential investors and in turn enable them to
offer affordable tariff to end users. Based on the demand assessment, the project cost is then
figured out and the right financing structure is identified. She said that area selected should be
remote where possibility of grid expansion is very limited, availability of concentrated
customers to make setting up of distribution network feasible and, the willingness and
capacity to pay by the customers for what the project has to offer. She further talked about the
need of sponsors to conduct a detail customer survey so that it can be subsequently verified
by IDCOL. This verification looks into different aspects such as income level to indicate the
customers’ capability to pay, existing electricity consumption pattern and their willingness to
use different types of loads. Based on this detailed customer survey, sponsors and
consultants come up with the right capacity of the project.
Ms. Rahman mentioned that IDCOL projects have typically three components of revenue
namely, monthly line rent, tariff per kWh of electricity and connection fee to mostly cover
connectivity expenses. Then, based on the project capacity, the cost of the project is derived
![Page 16: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/16.jpg)
Proceedings of the Green Mini-grid Development in South Asia
12
which typically has components like land plan development, equipment cost such as solar
panel, battery, inverter etc. and distribution network expenses. She stated that the average
cost of a 100 kW mini-grid is 0.5 million dollar wherein the project developer put in 20% of
the project cost in form of equity, 50% of the cost is provided as a grant in the form of
subsidy and the remaining 30% is given in form of debt charged at the rate of around 6%
interest for the tenor of 10 years and 2 years of grace period. She then spoke about a case
study of 100KW Solar PV based AC mini-grid under IDCOL’s financing which is still in
construction phase, to give an idea on how IDCOL deploy the concepts while assessing and
developing mini-grid project. This project is benefitting 520 households and commercial
entities. The project developer was made to conduct detail survey for 532 shops and 218
households and this was verified by IDCOL by randomly surveying about 25% of the total
size (126 shops and 61 households). She also presented the key findings of the case study
such as the average monthly bill for SHS and diesel consumers and the amount the customers
are willing to pay based on different categories of monthly income group, the expected load
patterns and the project estimation cost.
After the completion of these three thematic presentations, participants discussed over the
prevalent challenges, the barriers and possible solutions on the themes.
![Page 17: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/17.jpg)
13
Panel Discussion: Scaling up green mini-
grid projects in South Asia
Moderator: Mr. Amit Kumar, Adjunct Professor, TERI University, New Delhi
Mr Amit Kumar initiated the discussion by briefly dwelling upon replication and scaling up,
which, at times, are being used interchangeably. He pointed out that while replication meant
transfer of a tested concept or pilot to another location; scaling up implied expanding a tested
concept in terms of geographic reach etc. and it involved different set of risks. He said that
while lots of pilots have been set up, the need now is for scaling-up. The challenges included
appropriate delivery/business models, access to financing, and regulatory ambiguity. He also
posed a question to the panellists about the relevance of developing livelihood opportunities
around mini grids considering that these not only add up to the capital costs but also that
many a times the mini grid developers do not have core competency to tackle development
agenda. Asking the panellists to highlight the challenges faced by the mini-grid sector, he
invited them to prioritize three most important ones, addressing which can help the scaling up
of the mini-grid in accelerated fashion.
Mr. Chandrasekar Govindarajalu, Senior Energy Specialist at IFC said that the main
challenge of the companies working in mini-grids is to find right people or bankable
candidates for the Village Level Entrepreneurs (VLEs). It is a big challenge for any company
to scale up a commercial model. He held the policy and regulatory stability as a major issue
critical to the sustainability of mini-grid. In the sense that some mini-grid established over
years ceased to function because of the arrival of grid extension in the area and there was no
policy for mini-grid to deal with such scenarios. So, one need to prepare for that day and
therefore such scenarios must be taken into the account at the beginning of the project design
not at a later stage. The other challenge mentioned by him is the wide range of technical
models available in the market resulting in the difficulty to arise at a particular standard to
![Page 18: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/18.jpg)
Proceedings of the Green Mini-grid Development in South Asia
14
meet. Therefore, a revolution needs to happen on how to do some quality assurance and some
sort of standardization to get the market going.
Mr. Siddique Zobair, Senior Advisor from Ministry of Power, Energy & Mineral Resources
presented the views of the government and said that government is in a learning process
regarding renewable energy and trying to learn from technical people, entrepreneurs and
development partners. But, the main role of government is mostly of supporting. He stressed
on the fact that such off-grid projects need to be affordable, viable and sustainable and it is
then possible for the government to take care of the viability gap funding. He also mentioned
that government is revising the Renewable Energy Policy of 2008 to address the current
limitations. In the same policy, government has incorporated that if there will be grid
extension in the area where off-grid is in operation for 5 years then government will buy that
electricity from the developer and will fix the tariff on the basis of some parameters. He was
of the view that licensing is still one of the big barriers in the mini-grid development and the
government has tried to solve this issue by defining the parameters which clearly mentions
that in which case a project does not requires license. Lastly, he said that government
definitely want to develop mini-grid in the country in a sustainable way and with mostly in
the private sector.
Mr. Enamul Karim Pavel, Head of Renewable Energy at IDCOL stressed on the demand
assessment to be done properly while installing a mini-grid. If the demand is underestimated
than the actual requirement or vice-versa, then the project is likely to suffer. Similarly, in case
of biomass gasification based technology, raw material assessment is very important. He
considered socio-economic survey and demand assessment as big challenges that need to be
addressed properly for the successful operation and scale up of a mini-grid project. He also
raised the question that whether putting huge subsidy on mini-grid project is a sustainable
option or not. The support should be given to project developers and the technology should
be made familiar with local condition. Also, local manufacturers should be promoted as they
are the one who can help in reducing the equipment cost. He also mentioned that the project
other than being technically and financially viable should also ensure that it is being managed
properly. Customers should get support and their problems regarding the project should be
taken care of immediately.
Mr. Zubair K. M Sadeque, Senior Energy Specialist of South Asia Sustainable Development
Department at The World Bank was of the view that the standards enforced on mini-grids are
relatively higher than the grid standards because the government subsidizes the grid
extension. So, the grid connected people are pursued to be entitled to subsidy whereas in case
of mini-grids, people are told about the grant and subsidy put in which he feels is a kind of
unfavourable treatment to them. It is perhaps because of higher standards of mini-grids than
heavily subsidized grid extensions that make it difficult for mini-grids to scale up. He said if
a comparison is to be made for rural-electrification then both grid and off-grid should be
taken into account and how much subsidy is being given then perhaps the mini-grids will
look better.
![Page 19: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/19.jpg)
Proceedings of the Green Mini-grid Development in South Asia
15
Mr. Islam Sharif, Renewable Energy Consultant and Former CEO of IDCOL mentioned that
the whole idea behind SHS being so successful is because it has a model that is manageable,
attracts people and can be sold. He also discussed the design aspect of solar home system and
the reasons for its successful scaling up in Bangladesh. One of the key reasons is that all
stakeholders across the value chain are earning money from the programme. He raised the
question during his discussion that whether solar system users understand the terminologies
like KW, KWh etc. To which Ms. Asma Haque responded that people ask for light in terms
of products such as 2 lights, 1 fan etc. Mr. Sharif then remarked that in SHS, people are close
to set define that how many lights they want but in mini-grid it is still hard to do that because
of all the scientific units that are mentioned.
The last speaker to conclude the panel discussion was Mr. Syed Ishtiaque Ahmed, who spoke
on behalf of Mr. Sohel Ahmed, COO and Head of Business of Rahimafrooz Renewables,
Dhaka. He stated that the successful mini-grid programme is the development of successful
and sustainable sponsors. He mentioned that sponsors should come up with more divergent
projects rather than just one project and also that a successful project requires a rightfully
designed system and should take into account an appropriate load and social study. Mr.
Ahmed also suggested that a selling model should be multiple tariff based because the
households in rural communities are usually willing to pay but due to seasonal impact on
harvesting, which is there in most of the cases, results in inability to pay. Finally, he
concluded by complimenting IDCOL to come up with one of the most successful commercial
off-grid energy access model in the world.
Amit Kumar thanked all speakers and audience for their active participation and concluded
the workshop.
![Page 20: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/20.jpg)
![Page 21: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/21.jpg)
17
Annexure I: Program Schedule
09.30 – 09.40 Welcome speech by Mr. Shahriar A. Chowdhury, Director, Center for Energy
Research, United International University, Dhaka
09.40 – 10:00 The OASYS Project – Research Experiences and Key Lessons
Mr. Debajit Palit, Associate Director, TERI, New Delhi
10.00 – 10.15 Keynote Address
Prof. Dr. M. Rezwan Khan, Vice Chancellor, United International University,
Dhaka
10.15 – 10.35 Inaugural Address by Chief Guest
Mr. Tapos Kumar Roy, Additional Secretary, Power Division, Ministry of Power,
Energy and Mineral Resources, Govt. of Bangladesh
10.35 – 10.50 Address by Special Guest
Mr. Mahmood Malik, Executive Director and CEO, IDCOL, Dhaka
10.50 – 11.10 Tea/coffee Break
11.10 – 13.00 Session – 1: Lessons from Green Mini-grid Experiences
(Chair: Mr. Amit Kumar, Adjunct Professor, TERI University, New Delhi)
Bangladesh – Ms. Asma Huque, Managing Director, Prokaushali Sangsad
Ltd., Dhaka
India –Mr. Debajit Palit, Associate Director, TERI, New Delhi
Nepal–Mr. Sanjay Kumar Sharma, Alternate Energy Promotion Centre,
Kathmandu
International perspective- Mr Sebastian Groh, Micro Energy International,
Berlin
13.00 - 13.45 Lunch
13.45 – 15.15 Thematic discussion (Chair: Prof Dr. A K M Sadrul Islam, IUT, Dhaka)
Operation and Maintenance of mini-grids
- AC and DC mini-grids: Critical features and their operation &
maintenance by Prof. Peter Adelmann, University of Ulm, Germany
- Smart metering options for mini-grids: technology developments &
applications by Dr. Peter Boait, Senior Research Fellow, De Montfort
University, UK
Financing, Policy and Regulatory issues of mini-grids
![Page 22: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/22.jpg)
Proceedings of the Green Mini-grid Development in South Asia
18
- Ms. Farzana Rahman, Unit Head (Investment), Renewable Energy,
IDCOL
There will be a thematic presentation and thereafter the participants will
brainstorm the prevalent challenges, the barriers and possible solutions on the
themes.
15.15 – 15.35 Tea/Coffee Break
15.35 – 16.55 Panel Discussion: Scaling up green mini-grid projects in South Asia
Moderator: Mr. Amit Kumar, Adjunct Professor, TERI University, New Delhi
Mr. Siddique Zobair, Senior Advisor, Sustainable Energy for
Development and Addl. Secretary, Power Division, Ministry of Power,
Energy & Mineral Resources;
Zubair K. M Sadeque, Senior Energy Finance Specialist, South Asia
Sustainable Development, The World Bank;
Mr. Chandrasekar Govindarajalu, Senior Energy Specialist, IFC – South
Asia
Mr. Enamul Karim Pavel, Director, Renewable Energy, IDCOL, Dhaka
Mr. Islam Sharif, Renewable Energy Consultant and Former CEO, IDCOL
, Dhaka
Mr. Sohel Ahmed, COO and Head of Business, Rahimafrooz Renewables,
Dhaka
16.55 - 17.00 Concluding Remarks
![Page 23: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/23.jpg)
19
Annexure II: List of Participants
Workshop on Green Mini-grid Development in South Asia Enabling energy supply to rural areas through mini-grid solutions for economic empowerment
Date: 28 May 2014 Venue: United International University, Dhaka
Participants List S.No Title Name Designation Organization Email ID
1. Engr A B M Harunur Rashid Ex. Managing Director Ex. Power Grid Company of
Bangladesh Limited (PGCB) [email protected]
2. Mr A S M Muni DGM AVA Development Society [email protected]
3. Mr A S M Ziaul Hoque Senior Engineer Innovative Technologies Limited
[email protected], [email protected]
4. Mr Abdullah Al Helal Lecturer United International University
5. Mr Abdullah Al Matin Technical Officer Infrastructure Development Company Limited(IDCOL)
6. Mr Al Jumlat Ahmed Lecturer (Part time) EEE United International University (UIU)
7. Mr Alexander Batteiger Ph.D Candidate Postgraduate Programmes [email protected]
8. Mr Amit Kumar Adjunct Professor The Energy and Resources Institute (TERI)
9. Mr Anomadarshi Barua Lecturer United International University (UIU)
10. Mr Argun Kumar Sr. Finance Srizony Bangladesh [email protected]
11. Mr ASM Mominul Islam Research Engineer Centre for Energy research , United International University (UIU)
12. Ms Asma Begum Managing Director Prokaushali Sangsad Limited [email protected]
![Page 24: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/24.jpg)
Proceedings of the Green Mini-grid Development in South Asia
20
S.No Title Name Designation Organization Email ID
13. Mr Bikas Das Managing Director Grameen Shakti [email protected]
14. Mr Chandrasekar Govindarajalu Sr. Energy Specialist International Finance Corporation (IFC)
15. Mr D M A B Siddique Director Hydron Bangladesh [email protected] 16. Mr Debajit Palit Associate Director The Energy and Resources
Institute (TERI) [email protected]
17. Ms Dipta Majumder Technical Officer Infrastructure Development Company Limited(IDCOL)
18. Mr Farzana Rahman Unit Head (Investment) Infrastructure Development Company Limited(IDCOL)
19. Mr Hadley Taylor Consultant Micro-energy International (MEI)
20. Mr Hannes Kirchhoff Consultant Micro Energy International GmbH
21. Mr Harun-or-Rashid Executive Director Srizony Bangladesh [email protected]
22. Most Hassan Banu Executive Director Center for Mass Education in Science (CMES)
23. Mr Ibrahim Ahmad Shafi Al Mohtad
Executive Engineer (Planning & Development)
Electricity Generation Company of Bangladesh Limited(EGCB)
24. Dr Intekhab Alam Assistant Processor United International University (UIU)
25. Mr Islam Sharif President & CEO S K Johnson LLC [email protected]
26. Engr Jamal Uddin Deputy Manager (Technical Quality Control)
Grameen Shakti [email protected]
27. Mr Junaed Tazdik Monitoring Officer, SHS Program
Infrastructure Development Company Limited
28. Mr Kazi Ahsan Uddin Monitoring Officer Infrastructure Development Company Limited
29. Dr Kazim Humayun Kabir Manager, Environment Electricity Generation Company of Bangladesh
![Page 25: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/25.jpg)
Proceedings of the Green Mini-grid Development in South Asia
21
S.No Title Name Designation Organization Email ID
Limited (EGCB) 30 Mr Khalid Hussain Researcher Solargao shumno@[email protected]
31. Dr M A Rashid Sarkar Professor Bangladesh University Of
Engineering And Technology (BUET)
32. Dr M Khaleq-uz-zaman Senior Advisor German International Corporation (GIZ)
33. Mr Mahmood Mallik Executive Director & CEO Infrastructure Development Company Limited(IDCOL)
34. Mr Mahmud Ibrahim Research Engineer Centre for Energy Research, United International University (UIU)
35. Mr Manabendra Sarkar Student Bangladesh University of Engineering and Technology (BUET)
36. Mr Masroona Haque Communications CEA Inc [email protected]
37. Mr Md Abu Abdullah Assistant Professor East West University (EWU) [email protected]
38. Mr Md Rakibul Karim Special Lecturer United International University (UIU)
39. Mr Md Wazedur Rahman Student Pondicherry University [email protected]
40. Mr Md. Nizamuddin S A Manager AVA Development Society [email protected]
41. Mr Md. Enamul Karim Pavel Head of Renewable Energy Infrastructure Development Company Limited (IDCOL)
42. Mr Md. Kamrul Hasan Staff Reporter The Daily Amarsangbad Hasan-kamrul
43. Engr Md. Mesbahul Haque Deputy Manager AVA Development Society [email protected]
44. Mr Md. Moniruzzaman Director, Operation Panna Rural Development [email protected]
![Page 26: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/26.jpg)
Proceedings of the Green Mini-grid Development in South Asia
22
S.No Title Name Designation Organization Email ID
Foundation 45. Mr Md. Moshieur Rah Dy. Manager Schneider Electric [email protected]
46. Mr Md. Nadeem Chowdhury Lecturer United International
University (UIU) [email protected]
47. Mr Md. Rashedul Haque Ex. Research Engineer Centre for Energy Research, United International University (UIU)
48. Mr Md. ShihabUddin Research Engineer Centre for Energy Research, United International University (UIU)
49. Engr Md. Yasin Mozumder Environment Specialist Asian Development Bank [email protected]
50. Dr Md. Ziaur Rahman Khan Professor Bangladesh University of Engineering and Technology (BUET)
51. Mr Mehdi Hasan Chowdhury Lecturer Chittagong University of Engineering and Technology (CUET)
52. Dr Mohammad Arif Hasan Mamun
Professor, Department of Mechanical Engineering
Bangladesh University of Engineering and Technology (BUET)
53. Dr Mohammad Kamruzzaman Associate Professor Chittagong University of Engineering and Technology (CUET)
54. Mr Mohd. AhsanKabir Deputy Manager Schneider Electric [email protected]
55. Mr Mr Rabisankar Panda Manager, Quality Assurance
Panna Battery Limited [email protected]
56. Mr Noor Hossain Managing Director Innovative Technologies [email protected]
57. Prof Peter Adelmann University of Ulm, Germany [email protected]
58. Dr Peter Boait Senior Research Fellow De Montfort University [email protected]
![Page 27: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/27.jpg)
Proceedings of the Green Mini-grid Development in South Asia
23
S.No Title Name Designation Organization Email ID
59. Mr Roquib Ehsan Associate Engineer Solarland assistanteng@[email protected]
60. Mr S M Jakaria Sr. Advisor, Energy Policy CCEB-USAID [email protected]
61. Prof Sadrul Islam Head of CEE Islamic University of Technology (IUT)
62 Dr Saiful Haque Professor Dhaka University(DU) [email protected], [email protected]
63. Mr Sajib Kumar Ghosh Researcher Solargao Ltd [email protected]
64. Mr Sanaul Hoque Shakil Sr. Executive Confidence Electronic Limited
65. Mr Sanjay Kumar Sharma Programme Manager Alternative Energy Promotion
Centre (AEPC), Nepal
66. Mr Sankar Roy Director Bangladesh Clean Technology Company Limited (BCTCL)
67. Mr Sebastian Groh Project Manager Micro Energy International (MEI)
68. Mr Shahed Khan Mohammed Lecturer United International University (UIU)
69. Engr Shahidul Islam Managing Director Engineering Complex Limited
70. Mr Shahriar Ahmed Chowdhury Director United International University (UIU)
71. Mr Shah Noman Project Coordinator Solar Gao Ltd [email protected]
72. Mr Siddique Zobair J. Secretary Ministry of Power Energy and Mineral Resources
73. Mr Sufi Iqbal Ahmed Managing Director Solargao [email protected], [email protected]
![Page 28: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/28.jpg)
Proceedings of the Green Mini-grid Development in South Asia
24
S.No Title Name Designation Organization Email ID
74. Mr Sultan Mahmud Engineer, Renewable Energy
Panna Rural Development Foundation
[email protected], [email protected]
75. Mr Syed Ishtiaque Ahmed Head of Sales Rahimafrooz Renewable Energy Ltd
76. Mr Tapos Kumar Roy Additional Secretary Ministry of PEMR [email protected]
77. Mr Tarique Iqbal Director Bangladesh Clean Technology Company Limited (BCTCL)
78 Mr Tonmoy Kumar Bhowniar Lecturer United International University (UIU)
79. Mr Zahir Ahmed Head, Power and Industry Business
Schneider Electric [email protected]
80. Mr Zubair K M Sadeque Sr. Engineer F.S World Bank [email protected]
![Page 29: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/29.jpg)
Proceedings of the Green Mini-grid Development in South Asia
25
![Page 30: OASYS SOUTH ASIA Workshop May 28, 2014 Proceedings of the · energy based mini-grids for enhancing energy access in the South Asian region. Reiterating that conventional grid extension](https://reader034.fdocuments.us/reader034/viewer/2022052009/601e6c0258319d78ed2fbd1f/html5/thumbnails/30.jpg)
Proceedings of the Green Mini-grid Development in South Asia
26
OASYS South Asia project
The Off-grid Access Systems for South Asia (or OASYS South Asia) is a research project funded
by the Engineering and Physical Sciences Research Council of UK and the Department for
International Development, UK. This research is investigating off-grid electrification in South
Asia from a multi-dimensional perspective, considering techno-economic, governance, socio-
political and environmental dimensions. A consortium of universities and research institutes led
by De Montfort University (originally by University of Dundee until end of August 2012) is
carrying out this research. The partner teams include Edinburgh Napier University, University of
Manchester, the Energy and Resources Institute (TERI) and TERI University (India).
The project has carried out a detailed review of status of off-grid electrification in the region and
around the world. It has also considered the financial challenges, participatory models and
governance issues. Based on these, an edited book titled “Rural Electrification through
Decentralised Off-grid Systems in Developing Countries” was published in 2013 (Springer-
Verlag, UK). As opposed to individual systems for off-grid electrification, such as solar home
systems, the research under this project is focusing on enabling income generating activities
through electrification and accordingly, investing decentralised mini-grids as a solution. Various
local level solutions for the region have been looked into, including husk-based power, micro-
hydro, solar PV-based mini-grids and hybrid systems. The project is also carrying out
demonstration projects using alternative business models (community-based, private led and local
government led) and technologies to develop a better understanding of the challenges. It is also
looking at replication and scale-up challenges and options and will provide policy
recommendations based on the research.
More details about the project and its outputs can be obtained from
www.oasyssouthasia.dmu.ac.uk or by contacting the principal investigator Prof. Subhes
Bhattacharyya ([email protected]).
OASYS South Asia Project
Institute of Energy and Sustainable Development,
De Montfort University,
The Gateway, Leicester LE1 9BH, UK
Tel: 44(0) 116 257 7975