© V I V E K M / g r ee n p e a c e
Dharnai live
media manual
CONTENTS
I N T R O D U C T I O N : D e c e n t r a l i s ed Re n e w a b l e E n e r g y
1
M i c r o - g r id i n D h a r n a i
9
T a r i f f, Fu n di n g a n d m a i n te n a n c e
25
I n ve s to r - f r ie n d l y mi c r o - g r id
32
T h e way a h e a d
34
I nt r o d u ction
Decent r a l ise d Rene w a b l e E ne r g y
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
A e r i a l v i e w o f s o l a r p a n e l s i n D h a r n a i R e v e n u e V i l l a g e © SA J AN P O NAPPA / g r ee n p e a c e
1
W h a t is G r een p e a ce ?
Greenpeace is a non-profit organisation with a presence in 40
As a global organisation, Greenpeace focuses
countries across Europe, the Americas, Asia and the Pacific. It speaks
on the most critical worldwide environmental
for 2.8 million supporters worldwide and inspires millions more to take
issues such as:-
action every day. To maintain its independence, Greenpeace does
· Oceans and ancient forests protection;
not accept donations from governments or corporations but relies on
· Fossil fuel phase out and the promotion of
contributions from individual supporters and foundation grants.
renewable energies to stop climate change;
· Nuclear disarmament and an end to nuclear
Greenpeace exists because the earth and all life on it deserve a
contamination;
clean and safe environment – now and in the future. It has been
· Elimination of toxic chemicals; and
campaigning against environmental degradation since 1971 when
· Preventing the release of genetically
a small boat of volunteers and journalists sailed into Amchitka, an
engineered organisms into nature.
area north of Alaska, where the US government was conducting
underground nuclear tests. This tradition of “bearing witness” in a non-
Greenpeace India has focussed on four broad
violent manner continues today and ships are an important part of all
campaigns namely, stop climate change,
its campaign work.
sustainable agriculture, preserving the oceans
and preventing another nuclear catastrophe
Actions often speak louder than words and non-violent direct action
since its inception in 2001. Over the years,
is at the heart of Greenpeace campaigns, which have also grown to
Greenpeace India has built a strong base of
include lobbying and research over the past years.
supporters spread across the country.i
Children in front of the Dharnai Live mural at Jitkoria tola, Dharnai Revenue Village
© V I V E K M / g r ee n p e a c e
2
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
W h a t is G r een p e a ce d oin g in Bi h a r ?
Bihar has been struggling with energy
We have worked with key stakeholders in the state and the
access for decades. About 89 per cent
government machinery to develop a legal, political and regulatory
of the state’s population resides in rural
framework to review the existing centralised energy infrastructure and
areas and almost 95 per cent of the rural
encourage utilisation of renewable energy in the state.
population in Bihar is still dependent on
kerosene as a primary source of lighting.
In2011, Greenpeace launched its project “Ensuring Energy Access in
Just about half the villages in the state
Bihar through Decentralised Renewable Energy” to showcase a new
have been electrified, where the quality of
approach for energy justice. As part of it, we conducted a survey on
electrification is also suspect.ii
electrification done through Rajiv Gandhi Grameen Vidyutikaran Yojana
and recommended the use of DRE for reaching rural areas. In 2012, as
Greenpeace strongly believes that a
part of this campaign, we successfully demonstrated irrigation pump
decentralised and sustainable approach is
sets that run on solar, post which the state government announced a
the right way forward in providing electricity
host of schemes on irrigation, education, health and other livelihood
to the millions presently deprived of it.
programs using alternative renewable energy.
Bihar can leapfrog into the future to provide
for the energy needs of its population in a
Greenpeace has been witnessing various levels of changes it has
sustainable manner. To do this, the state must
brought in the state, particularly in its mission to convert a non-
chart an alternative development pathway
believer into believer. From changing and strengthening an ambitious
using decentralised renewable energy or DRE.
chief minister’s belief that decentralised renewable energy systems are
Such an alternative energy paradigm would
here to stay, Greenpeace is also advocating to the state government to
enable Bihar to ensure quality electricity and
increase investment in renewable energy technologies for irrigational
inclusive development to its people.
purposes.
Greenpeace has been working in Bihar since
2010 to bring about this paradigm shift in
its energy planning and investment. It is
implementing the energy access campaign
and has established the political momentum
in the state towards DRE as a tool to remove
energy poverty. The campaign aims to
challenge the dominant perception that
centralised addition will deliver power to all.
It instead works to create political and policy
champions who will support decentralised
systems powered by renewable sources
of energy versus coal or nuclear to provide
Greenpeace has been working in Bihar since 2010 to ensure
electricity access to millions who currently
quality electricity and inclusive development to its people
don’t have it (even if they are on the grid).
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
3
W h a t is DR E S a n d w h y is I T a k e y so l u tion to
I n d i a ’ s ene r g y p r o b l e m ?
DRES or Decentralised Renewable Energy Systems generate
It is obvious who is benefitting from these
electricity near the point of consumption using locally available
massive investments. Even schemes like
renewable resources. They do not use large land area or a huge
Rajiv Gandhi Grameen Vidyutikaran Yojana
distribution system and are more reliable in terms of energy access.
have not benefitted rural areas because of
Some of the DRES running in India today are solar-powered, rice husk
its reliance on expansion of the central grid.
systems and small-scale hydro systems.
Evaluations have pointed out how wires have
been laid out and poles erected but electricity
In the report, World Energy Outlook 2011, the International Energy
has not reached villages.
Agency (IEA) says that despite United Nation’s mission of sustainable
energy for all, we still continue to live in a world where 1.3 billion of the
Moreover, the quality of electricity from the
poorest people live without access to modern electricity, of which a
grid is plagued with intermittent supply,
major proportion lives in India.iii
voltage fluctuations and transmission losses.
With decentralised systems, the electricity is
There are more than 300 million people still waiting for electricity in
generated close to the point of consumption
Indiaiv with more than a third of the rural population lacking electricity.v
reducing distribution losses, infrastructure
Only 52.5 per cent of rural households have access to electricity.vi
costs and improving reliability of supply and
These rural areas, though often the location of large energy projects,
voltage.
have never benefitted from these projects. They have only borne the
brunt of the destruction caused by these projects.
This is the key reason why Greenpeace
believes that decentralised is the only
From far flung villages in the mountains, clusters in the forested
way village and rural areas can gain rapid
central expanse to the rural areas even in the densely populated Uttar
access to electricity. There are numerous
Pradesh and Bihar have not benefitted from the 54,964 MW expansion
decentralised systems operating across the
of the central grid.vii This is despite the fact that in the Eleventh Five
country that are providing sustainable and
Year Plan Rs 463,658 crores were spent on the power sector.viii
regular electricity to households.
O P T I O NS I N D e c e n t r a l i s ed Re n e w a b l e E n e r g y S y s tem s
S O LAR
4
b iom a s s
wind
mi c r o - h y d r o
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
A biomass gasifier generates electricity from discarded rice husk, and provides electricity to around
o n e l a k h p e o p l e a c r o s s 1 2 5 v i l l a g e s i n B i h a r © H a r ik r i s h n a K a t r a g a dd a / g r ee n p e a c e
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
5
W h y d o y o u t h in k w e c a n r e l y on r ene w a b l e ene r g y ?
After witnessing years of slagging growth, there is today widespread
an integrated approach with a mix of
need for robust growth and development across the country. However,
grid extension, grid interactive and off-
India’s crippling energy infrastructure is proving to be an impediment in
grid systems to meet the rural electricity
fulfilling the country’s economic and social needs.
requirements should be developed. Further,
renewable energy is well-suited to meet
Energy and electricity requirements, in particular, have risen sharply
India’s need for power in remote areas that
in recent years and this trend is likely to continue in the foreseeable
lack grid and road infrastructure due to
future. At present, India has an installed capacity of 211GW and
the distributed nature of resources and the
it is expected that by the end of the current 12th Five-Year Plan
scalability of system design.ix
(2012-2017), India’s peak demand will rise to 335GW. This in turn
will require India to have a total installed capacity of around
Renewable energy is not just the future but
415–440GW.
also the saner choice in the present energy
scenario. Renewable energy produces more
This means that in the next four years, India would have to install
than twice the amount of electricity produced
close to twice as much capacity as it has been able to install in the
by all of country’s nuclear power plants
last 60 years. In order to achieve this, the speed with which the new
combined. More than a million households
capacities are being built must increase five-fold. This must be seen in
depend solely on solar energy for their energy
the light of consistent under-achievement in capacity addition targets,
needs. In 2012-13, the electricity produced by
from the 1st Five-Year Plan till the present one.
renewables was equivalent to meeting the per
capita annual electricity requirement of about
Shift from fossil fuels to renewables will ensure that such aspirations
60 million people.x
are met while also providing substantial benefits like independence
from global volatile fossil fuel prices and the creation of millions of new
With coal reserves depleting worldwide and
green jobs.
nuclear unable to overcome its liabilities,
the question that is glaring at us is: is there
With decentralised micro-grids based on renewable energy generation,
an alternative to renewables? Greenpeace
Indian government could very well plug-in the terawatt challenge of
believes that going the renewable way is
providing millions with quality electricity supply. While it is true that
inevitable and not a choice
grid extension has a significant role to play in rural electrification,
6
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
Wit h h i g h e r costs , w h y d o y o u t h in k r ene w a b l e c a n
b e a so l u tion in a co u nt r y w h e r e t h e a v e r a g e p e r
c a p it a inco m e is l o w est a m on g d e v e l o p in g co u nt r ies ?
Currently, the price of renewables is definitely
subsidies. It enjoys 68 paise per kWh of hidden subsidies.xiii
higher than coal-powered energy and nuclear
To add to this, there is no proper accounting of environment,
energy. But there are many factors that are
displacement and pollution costs of coal mines and thermal
ignored when making this comparison.
power plants. A 2006 report by National Environmental
Engineering Research Institute says the external costs of a power
project are highest for a coal-fired power plant at Rs 0.1067 per
1. Coal-fired power plants and nuclear
power plants operate at a larger scale.
kilo watt hour.xiv On the other hand, a TERI report done for the
The investments are higher and the
Planning Commission states that the external costs of power
infrastructure required is also bigger.
generation from coal transportation to coal mining is estimated
At a bigger scale, the unit costs come
to be Rs 0.90 per kilowatt hour. Out of this, Rs 0.15/kwh is
down. The subsidies given to coal are
compensated and the remaining 0.75/kwh is not compensated.
also higher. The overall environment is far
This also does not include cost of carbon emissions and cost
more conducive to invest in and produce
of displacement. This report also puts the external cost of coal
coal-powered or nuclear energy than
mining at Rs 246/tonne of coal mined. Of this, Rs 126.49 /tonne
renewable energy.
is compensated and the rest Rs 119/tonne is not. This again does
not include health costs of coal mining.xv
2. Coal power is subsidised. Power plants
get subsidised land, almost free water
3. In 2009-10, state governments alone gave a subsidy of almost Rs
and subsidised raw material, i.e. coal.
20,000 crore to state electricity utilities so that they can keep the
In many cases, companies may also get
tariffs lower.xvi
coal mining leases at rates lesser than
market value. As the Coalgate highlights,
4. The price of coal is constantly rising. Due to limited coal reserves,
government’s allocation of coal blocks
state-run Coal India has been unable to meet its target for six
led to a loss of Rs 1.86 lakh crore to the
years in a row, and with power producers looking for expensive
exchequer.xi
imported coal, tariffs are bound to rise.xvii There has been a
50% increase in the cost of international procurement of coal
Other than these, the electricity utilities
for Indian power producers since 2004.xviii This has resulted in
also get subsidies from state and Centre
the rise in cost of coal power generation. In the last 10 years,
so that they can keep the tariffs lower
power generation prices have risen by more than 300 per cent.
for consumers. According to a report by
xix
Information and Credit Rating Agency
Subsidised power users like Delhi have seen a rise in power tariffs
of India Limited (ICRA), the subsidies
by more than 25 per cent in the last few years.xx
for power distribution companies were
projected to rise to Rs 60,000 crore by
5. Meanwhile, quietly and steadily, prices for renewables are coming
March, 2014.xii
down. At the beginning of 2011, a ground-mounted MW-scale
solar power project in India cost around Rs 14m (EUR 2.15m,
As a result, utilities have passed on the costs to consumers.
In addition, as per a study by World
USD 2.8m) per MW. Today, this has fallen by almost 50% to
Institute of Sustainable Energy, coal
around INR 7m (EUR 1m, USD 1.4m) per MW. The cost reduction
power also benefits from hidden
has largely been driven by a drop in module prices from USD 1
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
7
per watt in 2011 to USD 0.65 per watt today.xxi Module prices
7. Moreover, decentralised renewable
have fallen globally largely due to a condition of acute oversupply.
energy is already a billion dollar market in
Against global demand for 30-35 GW of solar power in 2012,
India. According to the World Resources
available module supply was 50-60 GW, most of it from China.
xxii
Institute, the off-grid energy access
market in India lies mostly amongst the
6. International Energy Agency estimates that the 300 million
114 million poorest households of the
people without access to electricity in India spend over $60
country that earn less than $2 a day.
billion annually on inefficient and obsolete sources of energy
Decentralised renewable energy holds an
like kerosene. This indicates there is a willingness to pay even
annual market of $2.4 billion and the solar
amongst the poor.
home lighting market is estimated to be
xxiii
around $27.4 million.xxiv
W h a t a r e t h e s u b si d ies a v a i l a b l e to r ene w a b l e
ene r g y u se r s ?
Sr. No.
Name of the Product
Cost Range(in Rs.)
1.
Solar Water Heating Systems (2 Sq. Meters) 13,000 – 20,000
6000 – 6600
2.
Solar Cookers
a) 3,500 to 4,200
30% of the product cost
a)Box Type Solar Cooker
b) 6,500 to 8,000
(Maximum).In Special
b)Dish Type Solar Cooker
c) 15,000 to 20,000
Category States
c)Scheffler Dish Cooker
MNRE Subsidy(in Rs.)
60% of the product cost
(Maximum)
3.
Solar Home Lighting Systems
11,000 – 15,000
4.
Solar Street Lighting Systems
17,000 – 22,000
5.
Solar Lanterns
1700 – 3000
6.
Solar Pumps
1,70,000 / kW
7.
Family Type Biogas Plants (2 Cubic m)
20,000 to 25,000
8.
Small Wind Turbines for off-grid
2,00,000 / kW
applications
9.
8
Water Mills
8,000 to 14,700 (depending
upon location)
70,000 – 80,000
35,000
M E D I A M AN U AL | I n t r o d u c t i o n : D e c e n t r a l i s e d R e n e w a b l e E n r e g y
Mic r o - g r i d in D h a r n a i
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
© V I V E K M / g r ee n p e a c e
9
Gi v e d et a i l s a b o u t t h e m ic r o - g r i d t h a t y o u a r e
settin g u p in Bi h a r .
It is a 100 kW plus expandable pilot smart-grid based on
or business package. The basic package
renewable energy technologies. It uses 280 solar panels to
includes one light connection and a charging
generate more than 100 kW of electricity that currently powers
point totalling 18 watts per household as a
more than 400 households, who have applied for connections.
basic domestic package.
The micro-grid is based on a bottom-up approach. It begins with a
The second package includes three lighting
certain ambition and can be scaled up based on people’s demands
points and a mobile charging point with a
and requirements. Being a community-led project, it is to be managed
total usage of 30 watts. Residents opting for
by electrification committees, which consist of members of the village
fan or television connections would also be
community using the micro-grid.
falling under this package.
The micro-grid also intends to create a model that is replicable and
The third is a commercial package for shops
can be used by the government for electrification across Bihar and the
and businesses which includes one lighting
rest of the country.
point, one mobile charging point and a street
light. It uses 18 watts of electricity. The
The micro-grid intends to be financially sustainable so as to take
package takers will also be allowed to use a
care of its own operations as well as attract investors and financial
fan connection. institutions into the arena of decentralised renewable energy systems.
Hence, we have involved BASIX and CEED as co-implementers of
Other than this, the micro-grid also
the project. BASIX has the expertise in financially managing a system
includes 10 solar-powered water pumps of
like this, whereas CEED is the organisation that will be the community
3 horsepower capacity each for irrigation
interface in Dharnai.
and 60 solar street lights. The water users
group in different tolas will manage water for
The model currently gives two kinds of domestic and a commercial
DI S TRIBUTIO N :
70 KW
for shops/
household
10
agriculture through the solar water pumps.
100 KW microgrid using solar power
30 KW
for irrigation
This is a replicable model
to inspire electrification of
19,000 villages in Bihar
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
A s o l a r p o w e r e d s t r e e t l a m p a t t h e J i t k o r i a t o l a , D h a r n a i R e v e n u e V i l l a g e © V I V E K M / g r ee n p e a c e
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
11
W h a t is a m ic r o - g r i d ?
Micro-grids are distribution grids that can be developed using a
Furthermore, micro-grids can control the
bottom-up approach, just like home energy systems and off-grid
balance between local supply and demand;
systems, and using locally available renewable energy sources to
therefore manipulate the power flow at the
meet local energy demand. However, unlike other island systems,
point of common coupling with the grid. This
power supply is more flexible and reliable because there is the option
enables the micro-grid to support the larger
to source it from local or centralized generation, according to its
grid in managing power quality as well as
availability and price. In this way, cheap power can be accessed
supply security, by injecting or consuming
from the grid during low demand periods, while local supply can be
active or reactive power when required, and
activated to power local demand during blackouts in the main grid.
aiding in black-start situations. xxv
I f it is s u c h a g r e a t too l t h en w h y a r en ’ t
m ic r o - g r i d s b ein g u se d a l r e a d y ?
There are a few reasons for this, but the main issues are design
Furthermore, the initial investment need
simplicity, system cost and the lack of awareness of its benefits. For
not be for the final full micro-grid solution
application in rural electrification, the system design is somewhat
because micro-grids can begin from
more complicated than a simple off-grid distribution system because
standalone energy home systems and off-
of the additional capability of being able to switch between grid-
grid distribution systems. Therefore, it gives
connected and island operation modes. The associated system costs
flexibility in the timing of financial investment,
are also higher because of the additional control structure that is
starting with a simpler system and adding
required. However, if these systems can be designed using standard
features as time goes by until it is fully
components in such a way that they are replicable, the costs will
integrated with the central grid system. xxvi
eventually come down as more micro-grid structures are implemented,
due to economies of scale.
W h y a r e y o u settin g u p a m ic r o - g r i d in Bi h a r ?
Bihar is amongst the top growing states in India. However the
served districts. To date, rural electrification
biggest challenge to Bihar’s growth trajectory is the lack of access to
and energy access has been tackled by
sustainable electricity. It is also a state with the lowest per capita
succeeding governments through centralised
energy consumption in India, with a mere 122.11 units, compared
infrastructure delivery systems. Greenpeace
to the national average of around 778.71 units. Even today, 82%
believes that distributed micro-grids that
of the state lacks access to electricity. While a lot of advancements
use locally abundant fuel sources is a more
have been made over the last few years, the lack of energy still
effective, cheap and sustainable way to
remains a crucial issue.
provide access to energy in Bihar.
The state of Bihar faces chronic electricity supply shortages resulting
Greenpeace has been campaigning to bring
from inadequate investments in generation and distribution capacity.
about a shift in India’s energy pathway from
High poverty paired with the population’s geographic concentration in
dirty fossil fuel to clean energy. We feel that
remote, rural areas form barriers that limit the logistical and financial
renewables is the key to energy access issues
viability of extending centralised electricity infrastructure to under-
in India and a solution to climate change.
12
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
E v e n t o d a y , 8 2 % o f B i h a r ’ s p o p u l a t i o n l a c k s a c c e s s t o e l e c t r i c i t y © S U BRA T A B I SWAS / g r ee n p e a c e
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
13
W h a t is G r een p e a ce ’ s m oti v a tion b e h in d t h is
m ic r o - g r i d ?
Greenpeace has been campaigning to bring about a shift in the energy
In a meeting with former Bihar Chief Minister
pathway of India from dirty fossil fuel to clean energy. We feel that
Nitish Kumar in 2012, Kumar had suggested
renewable is a key answer to energy access issues in the country and
that Greenpeace should display the viability
a solution to climate change.
of DRE through a model that can attain
what we are campaigning – a model that his
As part of our renewable campaign, we have been working in Bihar
government was willing to replicate across
since 2010 to bring about this paradigm shift in its energy planning
the state. So here we are with a pilot smart
and investment. It is implementing the energy access campaign and
micro-grid model in Dharnai that can lead
has established the political momentum in the state towards DRE as
Bihar out of an endless energy crisis. Our
a tool to remove energy poverty. The project aims to challenge the
next step will be to persuade and impel the
dominant perception that centralised addition will deliver power to all
Bihar government to scale up and replicate
and instead campaign to create political and policy champions who
the model at the state-level and put Bihar on
will support decentralised systems running on renewable sources Vs
a novel but sustainable development path
coal or nuclear to provide electricity access to millions who currently
powered by clean energy.
don’t have it (even if they are on the grid).
Greenpeace India starts laying out the electricity cables for street lights in Dharnai.
T h i s i s f i r s t t i m e i n d e c a d e s t h a t D h a r n a i ’ s s t r e e t s w i l l b e l i t u p © S U BRA T A B I SWAS / g r ee n p e a c e
14
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
W h y D h a r n a i in Bi h a r ?
After an extensive field research and
villagers maintain a progressive attitude. The total land holding is
assessment based on various feasibility
1,500 bighaxxvii and the villagers have their agriculture activities in
criteria, Greenpeace selected Dharnai village
around 1,200 bigha. Agriculture has been the predominant economic
panchayat in the Makhdumpur block of
activity in the village and there has been a substantial energy demand
Jehanabad district in Bihar. The village is
from irrigation for agriculture. Our survey shows that about 4,03,125
located 80km from Patna (on the Patna-
cubic meters of water is required annually for irrigation purposes
Gaya highway) and also has a railway
and cumulatively the expenses for irrigation is about Rs. 12,54,000
station, Barabar Halt. There are around 450
annually. With increasing diesel prices, these expenses will continue to
households in the village with a population
rise further.
of around 2,400 people.
The village settlement area, comprising houses, shops and other
Thirty years ago, due to various reasons, the
buildings, is around 100 bigha. This has substantial number of
village lost its electricity infrastructure. Since
shops with various commercial activities, like local eat-outs, bank,
then, the villagers have suffered due to lack
etc., constituting the commercial demand for energy. The households
of electricity and have been waiting to get
are spread across the village into four clusters. The load from the
electricity back to the village.
households mainly depend on lighting, use of fan, mobile charging
and in some cases television. All these make Dharnai an ideal case for
However, despite the lack of electricity, the
LOCATION
Located between Patna-Gaya
highway and Barabar Halt railway
station, 80 kms away from Patna
Greenpeace’s demonstrative project.
Population
Around 2,200
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
No. of households
4 clusters comprising
450 households
15
Ho w w i l l t h e m ic r o - g r i d o p e r a te ?
The micro-grid runs on solar-powered photovoltaic panel system
capacity for the lighting and 30 kW for
installed on the roof-top of government buildings, private buildings
minor irrigation purposes. Irrigation is
and residences. There is a battery bank with smart inverter in each
through installation of 10 solar pumps with
cluster. Each cluster is divided into 20 kW, has total 70 kW
a capacity of 3 horsepower each.
No. of Solar
–Panels
No. of
Batteries
No. Of
Inverters
No. of
No. of Pumps,
house-holds 3 hp
Total-100 Kw
280
224
15
500
10
W h o w i l l t a k e c a r e o f t h e o p e r a tion a n d
m a inten a nce ?
The micro-grid will be operated and maintained by BASIX and CEED
an active role in training of the community so
with the help of village electrification committees. Greenpeace will play
that they can maintain the micro-grid.
16
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
W h a t is BA S I X a n d C E E D a n d w h a t a r e t h ei r r o l es ?
CEED or Centre for Environment and Energy
to rural poor households under one umbrella. They have recently
Development, represents a network of NGOs,
ventured into energy services for the poor through BASIX Urja and
CSOs, think-tank organisations in Bihar to
they aim to focus on micro-grid based energy delivery in the future.
support renewable energy development in
http://www.basixindia.com/
the state. CEED is primarily supported by
Greenpeace and is working on the Dharnai
The Operator (BASIX Urja) will serve three major functions: community
project towards garnering grassroot-level
engagement; operation and maintenance; and payment collection.
support and building awareness about microgrids and enhancing energy access in the
Community Engagement – Community mobilisation and awareness
state of Bihar.
raising activities like face-to-face interactions and demonstration
http://ceedindia.org/
at group meetings, village meetings, etc., will be organised in order
to communicate functions and benefits to potential users. These
BASIX is a livelihood promotion institution
activities will continue even after the launch to further increase the
established in 1996, working with over 3.5
number of users as well as to collect user feedback for improvement.
million customers, over 90% being rural
poor households and about 10% urban slum
Operation and Maintenance – BASIX Urja’s trained local technician
dwellers. BASIX works in more than 17 states
will monitor the system performance on a daily basis; set up new
across the country. Its mission is to promote
connections (e.g. wiring, installing meters); provide the first level
a large number of sustainable livelihoods,
of support for technical problems; and conduct minor repair and
including for the rural poor and women,
maintenance work. For the major technical problems, such as
through the provision of financial services
equipment replacement, developer’s engineer will provide the second
and technical assistance in an integrated
level of support.
manner. They strive to yield a competitive
rate of return to its investors so as to be able
Payment Collection – BASIX Urja will enrol domestic, commercial
to access mainstream capital and human
and agricultural users, keep track of electricity usage of each user,
resources on a continuous basis. BASIX also
calculate the billing amount and collect fees from users on a regular
provides a comprehensive set of livelihood
basis. Multiple models and tools such as pre-payment and digital
promotion services which include Financial
meters are being tested and used in the market to reduce transaction
Inclusion Services (FINS), Agricultural/
costs and increase payment rates and revenues. The team will
Business Development Services (Ag/BDS)
determine which ones are most appropriate for this project after the
and Institutional Development Services (IDS)
detailed analysis phase.
Commu n it y E n g a g eme n t
O p e r a tio n a n d M a i n te n a n c e
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
P a y me n t Co l l e c tio n
17
BASIX and CEED have formed a consortium with Greenpeace to
Greenpeace will use this model to advocate
implement this project jointly with the help of the technical developer,
for further replication of such models in the
Kripa Solar. Once the project is completed, it will be managed by
state and communicate to government and
BASIX Patna, who will be responsible to maintain and operate it.
policy makers to bring desired change in
policy to further multiply it.
W h a t w i l l b e G r een p e a ce ’ s r o l e once t h e
m ic r o - g r i d is set u p ?
The objective of the micro-grid is also to discover a micro-grid
Greenpeace and we will continue to oversee
management and ownership model that is operationally and financially
the operations and maintenance of the
sustainable. To create an environment that is conducive to large-scale
micro-grid for the next few years. Greenpeace
development of smart renewable energy-based micro-grids across
will be actively involved in the training of
Bihar and the rest of India. Greenpeace will continue to campaign
community in Dharnai in the maintenance
towards this aim.
and operation of the micro-grid. Once the
community is fully trained to handle the
Greenpeace will also suggest a regulatory framework required
micro-grid, a cooperative society will be
for scaling up this concept. We will continue to prod the Bihar
setup. After the quality benchmark and
government to release a roadmap for upscaling and replicating the
fulfilling each and every legality, Greenpeace
Dharnai model.
and BASIX will exit out of the day-to-day
operations.
On a functional level, the micro-grid in Dharnai has been setup by
W h y d o y o u t h in k p eo p l e in D h a r n a i w i l l a cce p t t h e
m ic r o - g r i d ?
Dharnai has all the ingredients for a success story but lacks
the solar-powered micro-grid, they will get
access to energy that will drive the success. Having last seen
regular and sustainable supply of electricity.
electricity in 1981 and since then running from pillar to post to get
The tariffs have been fixed by the village
an electricity line for their village, the micro-grid will be a game
electrification committees and BASIX in
changer for Dharnai residents.
consultation with the residents of Dharnai.
It will be revised as per the mutual decision
Moreover, the residents have been spending thousands on unreliable
taken by the VEC and operators.
and expensive kerosene and diesel for their energy needs. With
Ho w is it a co m m u nit y - d r i v en p r o j ect ?
Dharnai micro-grid has been set up with all due permissions from the
as serious discussions about the tariff and
gram sabha, panchayat and the people of Dharnai. Dharnai residents
the working of the micro-grid. The tariffs were
have been involved in the project right from the start.
in fact decided by the community itself after
mutual understanding and discussions.
We have taken explicit care so that residents can make informed
choices. The community has been part of the awareness drive as well
18
The community is also part of the village
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
electrification committees that will handle the
interface between the operators and the residents. The committee
day-to-day running of the micro-grid. The
members will not only decide on the demand of electricity and the
village electrification committees will be the
usage but also collection of tariffs.
A broken and dilapidated structure of what used to functional electricity poles and wires.
T h e s e s t r u c t u r e s h a v e n o t b e e n r e v i v e d i n y e a r s © Su b r a t a Bi s w a s / g r ee n p e a c e
Ho w is it a b otto m - u p a p p r o a c h ?
Generally, we have seen that in the centralised electricity production
right now that can be scaled up as per the
system, the electricity load calculation forecast is based on the
demand and requirement of the residents.
capacity of the power plant, which is in turn based on coal supply
So instead of a fixed capacity that can cater
and the transmission and distribution losses. But in decentralised
to only certain requirements, the capacity of
electricity system – in this case the micro-grid – the electricity load
the micro-grid can be increased as per the
calculation totally depends on the requirement of one cluster or
demand. So it is one of the best case studies
the load survey in one cluster. The micro-grid is a 100 kW system
for the bottom-up approach.
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
19
W h a t is t h e U S P o f t h is m ic r o - g r i d ? Ho w is it u ni q u e ?
A f i r st - o f - its - k in d …
The USP of the micro-grid is its model – from darkness to light
It provides electricity round the clock
in three months. For 30 years, the village was deprived of a vital
to a village that would otherwise never
resource like energy. This lifeline has been made available to them
be electrified under the centralised grid
in just three months.
paradigm. It provides electricity that not just
gives residents the basic fan and light but the
The micro-grid empowers the people of Dharnai to not only meet their
power to fire their ambition.
basic needs but also their aspirations. It gives the young opportunity
to dream of not just a comfortable earning but hold the ambition of
For the governments, it’s a model that can
joining the world in its race to growth. Small-time businessmen who
fulfil their governance goals, and for the
want to make it big by selling more. Farmers who want to innovate to
financers it’s an investment opportunity.
get the best harvest.
I t is a l so l i g h tin g u p one / t w o b u l b s a n d one p oint .
Ho w is it d i f f e r ent f r o m ot h e r DR E S ?
It is lighting up a bulb and a charging point for mobiles round-the-
aspirations of the residents. So later if people
clock. Most DRES systems provide electricity only for about 6-7
buy televisions and other equipment, the
hours. In addition, the micro-grid can be scaled-up so as to meet the
micro-grid’s capacity can be increased.
I f p eo p l e a r e not w i l l in g to b u y e l ect r icit y h o w w i l l
it b e s a f e a n d sec u r e ? W h a t w i l l ens u r e t h e s a f et y o f
t h e h a r d w a r e ( p a ne l s , w i r es , p o l es ) ?
First, the village electrification committees comprising of residents
guarantee for the micro-grid. It is in their
of Dharnai will be in charge of the security of the micro-grid. Already
interest that the micro-grid continues to run.
more than half the households in the village have registered for buying
Especially, since they have struggled without
electricity from the micro-grid. That in itself is a social protector.
electricity for the last 30 years.
The society and the community that is using it will be the physical
Ho w is it a n ex p a n d a b l e m o d e l ?
The micro-grid is based on Greenpeace’s E[r] cluster approach, which
community ownership, which addresses not
we had recommended to the state government. Considering the cost
only the lighting needs of the village, but also
and infrastructure involved, time taken for installation, catering to
includes irrigation, empowers women and
electricity requirement of a population of more than 3,000, it takes very
BPL families, improves education, takes care
minimum time, minimum investment and minimum infrastructure. Most
of poverty alleviation and addresses other
importantly, it runs on minimum maintenance cost as compared to
issues.
centralised grid-based electricity system.
There are numerous funds under various
It is a social development-based energy business model. It is under
20
government departments like panchayati
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
A s o l a r p o w e r e d s t r e e t l a m p s e e n a t t h e B i s h u n p u r t o l a , D h a r n a i R e v e n u e V i l l a g e © V I vek m / g r ee n p e a c e
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
21
raj, rural development, energy department, rural infrastructure and
World Bank. These funds can be utilised for
Bihar Rural Livelihood Promotion Society projects (BRLPS). BRLPS
expanding and replicating Dharnai-like models.
is a registered body of government of Bihar, which is responsible for
More so, because people are demanding
rural development with livelihood improvement mission, funded by the
access to electricity and the Dharnai model is
about that.
I s o v e r - d r a w in g o f e l ect r icit y p ossi b l e in t h e
m ic r o - g r i d ? I f y es , h o w w i l l it b e m a n a g e d ?
Though people have been educated about the micro-grid and about
of smart electricity metres will ensure that
the technical issues involved, there can always be instances of over-
over usage does not happen. These digital
drawing of electricity. This can lead to tripping of the micro-grid and
metres can’t be tampered with. Such metres
hence electricity failures. Metering will ensure that households don’t
are essential for the smooth running of the
use more than the package they have purchased. Also, installation
micro-grid.
Ho w w i l l w e a v oi d t h e f t a n d p i l f e r a g es ?
Metering will ensure that households don’t use more than the package
tampered with. Such metres are essential for
they have purchased. Also, installation of smart electricity metres will
the smooth running of the micro-grid.
ensure that over-usage does not happen. These digital metres can’t be
I f g ene r a tion o f e l ect r icit y is m o r e t h a n w h a t is
r e q u i r e d , h o w w i l l t h e m ic r o - g r i d c h a nne l ise t h e
excess e l ect r icit y ?
Greenpeace micro-grid is designed on the E[e] cluster approach
back to the centralised grid. So in future
where, in case of excess generation, power can be supplied to
when the centralised grid is ready to buy back
another cluster or village near the grid. Also, the micro-grid is
electricity from such micro-grids, Dharnai
designed to be grid interactive, which means that it can sell energy
model will be ready.
Wi l l t h e g ene r a tion o f e l ect r icit y a n d h ence s u p p l y
b e a f f ecte d d u r in g Monsoons o r c l o u d y d a y s ? I f
y es , h o w w i l l b e t h e p r o m ise o f r o u n d - t h e - c l oc k
e l ect r icit y m et ?
Yes, it is a challenge to supply round-the-clock electricity during
BASIX and CEED will also look at ways of
prolonged rainy days, cloudy days and foggy season in winter. But
complementing the electricity production
we are checking the demand and supply management and will store
through bio-mass so that it can be integrated
the electricity in the battery bank when the generation is low. We
into the system based on the demand.
will also regulate the supply and usage of electricity. Greenpeace,
22
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
W h a t is t h e p r ocess to g et t h e b ene f it f r o m
t h is p r o j ect ?
The project will run as a private business
First and foremost, in order to enhance the effectiveness, a nominal
model and will supply secure electricity to
joining fee will be charged so that the community can also provide
people when it is needed. However, there
guarantee to equipment and machinery. Interested households
are set of rules which need to be adhered to
can approach the local office in the village to get connection after
get the maximum benefit out of the project.
depositing the joining fee and form. Based on the assessment and
The community neesd to provide maximum
requirement, electricity connection will be provided which comes with
support to the project as it is for direct benefit
an electricity meter.
of the village.
W h a t a l l e q u i p m ent c a n one r u n on t h e connection
one t a k es ?
Whatever machines need to be used by the
or agreement with the operators, BASIX and the village electrification
customers, they should get prior approval
committees. There will be technical people to advice on what sort of
machinery can be used.
I s t h e r e a n y r is k in te r m s o f e l ect r ic a l s h oc k ?
There are very less chances of severe
the installation process we will be giving safety demonstrations
electricity shocks as these systems are low
and ensure equipment used are shock-proof. Also, there will be
voltage and not high voltage, and as part of
technical people in the village who will be responsible for handling
these situations.
W h o w i l l b e r es p onsi b l e f o r s u c h r is k ?
The company will not be responsible for
person. The company will only be responsible for the successful
any person being impacted by shocks or
operation of the plant and ensure it provides the agreed quantity of
accidents, as it would be the fault of the
energy.
W h o w i l l b e r es p onsi b l e f o r tec h nic a l a ssist a nce ?
The operating company, BASIX, will be
will take care of any technical aspects that may arise. BASIX will be
responsible for the complete system and
responsible for all the operation and maintenance work.
W h a t is t h e s y ste m o r tec h no l o g y o f t h is p r o j ect ?
Currently, the project will be using solar
supply to the village and it will use latest technology in terms of wires
photovoltaic technology to produce energy to
and metering system.
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
23
W h o w i l l b e r es p onsi b l e f o r sec u r it y a n d s a f et y ?
BASIX, village electrification committee (VEC) and joint monitoring
Before the complete handover, the village
committee is responsible for the security and safety of the micro-grid
electrification committee will be legally
assets. All the assets have been insured against theft and accidents.
registered under the society’s act. That is the
For keeping people engaged in the security of the assets, a joint
body that will take decisions in case of theft or
monitoring committee will be formed involving all stakeholders.
damage of assets.
W h a t a b o u t e f f icient u se o f e l ect r icit y a n d w a te r ?
We will provide the most efficient systems for both lighting and
use water in a conservative manner.
pumping solutions. We will also advocate the usage of drip irrigation to
W h a t w i l l h a p p en to t h e c u r r ent so l a r e q u i p m ent
b ein g u se d b y t h e v i l l a g e r s ?
These systems will be separate and not part of our system, customers
technical advice on how best to utilise them
are free to utilise them for their personal usage. We can provide
without affecting the micro-grid system.
Wi l l y o u d ist r i b u te so l a r p u m p s f o r t h e a g r ic u l t u r e
f a r m s o r t h e s a m e e l ect r ic a l p u m p s w i l l r u n ?
The entire system will be installed by the company and there will be
will be advice on how the old pumps can be
a pay-per-use process, i.e., customers will pay as much as they use.
used and what sort of agricultural practices
The tariffs will be fixed accordingly and informed in prior notice. There
can happen.
24
M E D I A M AN U AL | M i c r o - g r i d i n D h a r n a i
T a r i f f , F u n d in g
a n d m a inten a nce
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
© V I V E K M / g r ee n p e a c e
25
W h a t is t h e t a r i f f st r u ct u r e ?
Electricity services will be provided according to following packages:
Package I: 1 LED light of 6W, mobile charging point of 12W and Solar Street Light
Total consumption of electricity
Total monthly unit consumed
Rate per unit
Monthly tariff
Security deposit
Wiring cost
18W
8 UNIT
Rs 9.50
Rs 75
Rs 300
Rs 300
Package II: 3 LED light of 6W each, mobile charging point of 12W and solar street light
Total consumption of electricity
Total monthly unit consumed
Rate per unit
Monthly tariff
Security deposit
Wiring cost
30W
13 UNIT
Rs 11
Rs 140
Rs 500
Rs 500
Note:
1. Extra light will be charged @ rate of Rs 35 per month
2. Customer joining under Package I and asking for two bulbs will be considered as Package II category and
accordingly the customer has to pay the security deposit and wiring fee.
3. All other appliances like fan, TV, etc., will be charged as per Package II unit rate. For example, a fan of 40W will
consume 15 units (approx.), if it runs for 12 hours every day.
4. Appliances like heater, iron, geyser, cooler, air conditioner, cooker, toaster, etc., will not be allowed to be used under
this project. Customers are requested to check with the local project office about such appliances.
Commercial Package: I LED light of 6W, mobile charging point of 12W and solar street light
Total consumption of electricity
Total monthly unit consumed
Rate per unit
Monthly tariff
Security deposit
Wiring cost
26
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
18W
9 UNIT
Rs 13
Rs 115
Rs 1,000
As per actual
Note:
1. Each commercial establishment will have energy plan and accordingly their monthly rental will be fixed.
2. Extra light point will be charged @ rate of Rs 40 every month.
3. All appliances like TV, computer, printer, etc., for commercial establishment will be charged @ Rs 13. For example, a
fan of 40W will consume 15 units (approx.), if it runs for 12 hours every day.
4. Appliances like heater, iron, geyser, cooler, air conditioner, cooker, toaster, etc., will not be allowed to be used under
this project. Customers are requested to check with the local project office about such appliances.
The consumers will be charged on a monthly
At any given point of time, the rate will be much cheaper (three time)
basis to make sure that they get secured
than any other existing micro-grid project in India. The rate will also
quality supply of electricity. It is important
be determined based on the sustainability, affordability and reliability
that each consumer pays in time to ensure
for all. In all probability, a consumer will still be paying less than their
that the project is successful and it helps
current energy bill.
people bring a positive change in their life. A
timely payment will help us to serve better.
I s t h e r a te o f e l ect r icit y s a m e f o r r ic h p e r son
o r p oo r ?
The rates are not based on rich or poor,
for the services is not classified based on any class but based on its
but based on category like household,
type and quantity of usage (number of units of electricity used).
commercial and agricultural usage. The rate
W h o w i l l p a y f o r co m m on f a ci l ities l i k e st r eet
l i g h tin g o r f o r P a nc h a y a t B h a w a n o r sc h oo l s ?
The project team in consultation with the local
fund, but for street lighting the fee can be shared by the villagers.
body such as gram sabha will decide the
This should be implemented with the help of the gram sabha.
mode of payment. In ideal scenario, we would
However, the project team will have no problem if the gram sabha
require each user to pay from their pocket.
takes the responsibility of making payment for all common facilities
For example, school needs to pay from their
in the village.
Yo u s a y t h a t so l a r is g ettin g c h e a p e r . Wi l l t h e t a r i f f
b e r e d u ce d in t h e co m in g y e a r s ?
Tariff was set in consultation with the village
The tariff is dynamic in nature and will be determined on periodic basis
residents. Future tariffs will again be revised
in consultation with all stakeholders, including community; therefore a
in consultation with the users. Village
rate card will be published on a regular basis in consultation with and
electrification committees will also play an
approval of the gram sabha.
important role here.
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
27
W h a t w a s t h e p r ocess a d o p te d to co m e to t h e c u r r ent
t a r i f f ? I s t h e r e w i l l in g ness to p a y ?
The tariff was decided by the village electrification committees and
and operation cost after the same process of
BASIX in consultation with the residents of Dharnai. To begin with,
consultation with all villagers.
Greenpeace had met the four Village Electrification Committees
(VECs) with a draft tariff structure. The VECs in turn took feedback
As per Electricity Act, 2003 and Bihar
from communities and tolas they represent on the tariff structure.
Electricity Regulatory Commission norms, the
Once a consensus was built on the tariff structure, there was a final
tariffs can be decided after mutual agreement
meeting with the panchayat and the sarpanch. The tariff structure was
of villagers and operator. So every household
finalised and signed by all four VECs, BASIX and panchayat.
will have to give their agreement on the tariff
for it to be finalised.
VECs and operator can revise the tariff based on the maintenance
e l ect r icit y f r o m t h e m ic r o - g r i d is m o r e ex p ensi v e
t h a n t h e e l ect r icit y a v a i l a b l e f r o m t h e g r i d . Ho w
d o y o u inten d to m a k e t h e m ic r o - g r i d s u st a in a b l e ?
Yes, currently the electricity from the micro-grid is more expensive
The main source of income for villagers in
than the electricity provided by the centralised grid. However, the
Dharnai is agriculture. The per capita income
question here is of access to electricity or no electricity at all.
of the village is very high, except for the 75
BPL [below the poverty line] households.
Moreover, if the external costs of a centralised grid-based power
As per our survey, the willingness to pay is
system are added, it is far more unsustainable than a decentralised
very high in Dharnai. Also, a village that did
system. Hence, the crucial question that faces us is – how long can
not have electricity for 30 years will see the
we continue to bear the burden of a flawed and intensive setup? It is
benefits of 24x7 electricity supply.
only obvious to shift to a smarter and less complicated structure that
truly delivers.
Ho w w e r e t h e e l ect r i f ic a tion co m m ittees f o r m e d ?
The micro-grid divides Dharnai in four clusters and each cluster (tola)
Combining the four VECs, a cooperative
has a mix of all castes and both below poverty line and above poverty
society will be formed for Dharnai, which
line families. For each tola, there is a Village Electrification Committee
will have a chairman, deputy chairman,
(VEC) which comprises 20 members – five working group members
secretary and treasurer. This cooperative
with the chairman, deputy chairman, and secretary. To ensure gender
society will look at the overall development
balance, each VEC working body has three female members. Each
of the micro-grid regarding financial
VEC is responsible for the maintenance and security of the micro-
returns, tariffs and consumer disputes,
grid infrastructure and the dispute between consumers in their tolas.
security and maintenance.
In total, there will be four VECs in Dharnai to look after the overall
running of the micro-grid.
28
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
P a y in g Rs 1 0 a d a y f o r m o b i l e c h a r g in g is d i f f e r ent
f r o m p a y in g a l a r g e r a m o u nt p e r m ont h . Ho w a r e y o u
t a k in g t h a t into a cco u nt ?
As mentioned earlier, Dharnai has been
They can understand and have realised the benefits of round-the-
without electricity for 30 years. They have
clock electricity. According to an estimate by the International Energy
been dependent on expensive and inefficient
Agency, the 300 million people without access to electricity in India
fuels like kerosene and diesel. Some have
spend over $60 billion annually on inefficient and obsolete sources of
even bought single solar panels to light a bulb
energy like kerosene. This indicates there is willingness to pay even
or power a television.
amongst the poor. xxviii
W h a t i f p eo p l e r e f u se to p a y t h e t a r i f f s o r a r e
u n a b l e to p a y ?
At the time of applying for a connection, the
dues. In case of non-payment of dues, the VEC of that particular
consumer enters into an agreement with the
tola will take up the case and decide to disconnect the electricity
VEC and the operator. The agreement lists
connection and also reserve the security money deposit. The VEC and
out the terms and conditions, which include
the operator will take the decision in case of non-payment of dues.
disconnection in case of non-payment of
I n y o u r in a u g u r a l p r ess con f e r ence , y o u s a i d it w i l l
b e c h e a p e r t h a n ot h e r m ic r o - g r i d s . Ho w ?
The tariffs under the micro-grid in Dharnai
charging above the current rate of unit we are charging. Moreover, we
start from Rs 9.50 per unit and go up to Rs
also supply more power than other micro-grids.
13 per unit. Most micro-grids are currently
Greenpeace solar- Other solar-based Husk-based micro- People
People
based micro-grid
off-grid micro-
grid model in
engagement in
engagement in
tariff
grid models in
Bihar
Greenpeace micro- other solar-based
different parts of
grid model
microgrid model
the country
in different parts
Rs 30 per unit
Tariff decided as
of the country
No people
minimum tariff for minimum tariff for tariff
per the people
participatory
household
participatory
method used in
method
other micro-grids
Rs 9 per unit
household
Rs 20 per unit
Source: E[r]cluster report, MNRE data.
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
29
I n s i d e t h e m u k h i y a ’ s h o u s e , l i t u p b y s o l a r p o w e r e d CFL s © V I vek m / g r ee n p e a c e
30
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
W h a t w i l l b e t h e r u nnin g costs ?
The total investment in the micro-grid is
operational cost will be around 13 lakh each year to maintain and
Rs 2.75 crore. The total maintenance and
operate the system.
I s G r een p e a ce e a r nin g a n y t h in g f r o m t h is p r o j ect ?
Greenpeace is a non-profit organisation. It
decentralised renewable energy system, like the micro-grid in Dharnai
does not earn from its campaigns. The micro-
is a demonstration of our solution to India’s energy access problems.
grid is part of our campaign to showcase
Yo u w i l l set u p a n i r r i g a tion p u m p set . Ho w w i l l it
work?
The solar-powered irrigation pump sets have
VECs on a per hour usage basis. The water pump sets will also
been installed by BASIX in consultation with
work on the franchise model so that local entrepreneurship can
the VECs. The tariff has been fixed by the
be developed.
W h a t is t h e cost o f t h e i r r i g a tion p u m p set ? W h a t is
t h e ta r i f f ?
The cost of one pump set is about Rs 3.5
lakh. The tariff is not decided yet by the VECs and BASIX.
Ho w a n d f r o m w h e r e is G r een p e a ce r a isin g f u n d s f o r
t h e m ic r o - g r i d ?
The process of raising funds mainly involves
is done after studying their giving pattern and inclination towards a
contacting existing supporters. Based on the
particular cause and Greenpeace projects. We also regularly research
work we have done in Dharnai as part of our
and look for potential donors who can possibly contribute to our
Climate and Energy campaign, we pitch for
projects like people from IT background, Forbes Indian 100 list,
funds from existing and new supporters. This
people from solar industry, RE sector, etc.
W h en d oes t h e p r o j ect b r e a k e v en ?
The project is not designed to make profits
be sustainable from a long-term perspective. Hence, the tariffs are not
(as there is no element of subsidy or financial
designed to make profits from this project, as it’s a pilot project and
incentive included in this – the project is
Greenpeace is a non-profit organisation. What this pilot intends to do
completely funded by Greenpeace). The
is establish a working model at lowest tariffs (sufficient for the project
tariffs are designed to meet the operation
to be sustainable) and provide the basis for designing an appropriate
and maintenance costs for the micro-grid to
financial mechanism and incentive for enable financial breakeven for
micro-grid projects.
M E D I A M AN U AL | T a r i f f , F u n d i n g a n d M a i n t e n a n c e
31
I n v esto r - f r ien d l y
m ic r o - g r i d
32
M E D I A M AN U AL | I n v e s t o r - F r i e n d l y M i c r o - g r i d
© V I V E K M / g r ee n p e a c e
Ho w is it a b u siness m o d e l ?
The micro-grid is designed to be sustainable
designed to prove that micro-grids can operate and generate revenue
from a long-term perspective, that is,
to ensure sustainability. However, with the right financial incentive
to provide for efficient operation and
from the government, it can become an attractive business with huge
maintenance of the micro-grid. The model is
potential for providing energy to rural households.
W h y d o y o u t h in k in v esto r s w i l l b e inte r este d in
in v estin g in a m ic r o - g r i d m e a nt f o r r u r a l a r e a s ?
Off-grid electricity systems or DRES is
solar home lighting market is estimated to be around $27.4 million.xxix
already a billion-dollar market in India.
According to the World Resources Institute,
In terms of opportunity for the investors, even at a peak demand
the off-grid energy access market in India
of 1 kWh per household, by 2020 the country will have 100 million
lies mostly amongst the 114 million poorest
households still without access to electricity. There is thus a 100GW
households of the country that earn less than
opportunity to serve this market with off-grid energy. The Off-Grid
$2 a day. Decentralised renewable energy
Business Indicator report released by the Solar Energy Foundation
holds an annual market of $2.4 billion and the
ranks India highest among the top five off-grid markets in the world. xxx
O nce G r een p e a ce is o u t o f t h e d a y - to - d a y r u nnin g o f
t h e m ic r o - g r i d , h o w w i l l it g et in v est m ent r o u te d to
m ic r o - g r i d s ?
The objective behind setting up the micro-
DRES, will help in creating an environment conducive for investment.
grid was to establish an investor-friendly
Greenpeace will also be pushing the investor and business community
business model that ¬attracts financers.
to invest in DRES.
Besides, a host of policy changes and
regulatory mechanisms will be required to
Greenpeace will use the Dharnai model to campaign with the finance
make it an overall success. Greenpeace will
and investment community to put more funds in similar DRES models.
be campaigning to get the Bihar government
The success of this model will also enable the Bihar government to
to announce a pathway to replicate the
present this model under UNFCCC’s Nationally Appropriate Mitigation
micro-grid. This, along with priority to
Actions (NAMA) proposal for financing of DRE.
M E D I A M AN U AL | I n v e s t o r - F r i e n d l y M i c r o - g r i d
33
T h e way a h e a d
34
M E D I A M AN U AL | T h e W a y A h e a d
S o l a r p a n e l s a t o p t h e P a n c h a y a t B h a v a n , D h a r n a i R e v e n u e V i l l a g e © V I V E K M / g r ee n p e a c e
W h a t a r e y o u r p l a ns once t h e m ic r o - g r i d
is est a b l is h e d ?
Dharnai micro-grid is one of the biggest
We will use this model to campaign and convince the government to
demonstrations of solution work by
replicate the model at a wider scale in Bihar. Greenpeace will prod the
Greenpeace, and at the end of the project
government to establish a pathway to replicate the model.
Greenpeace aims to develop an iconic and
The success and impact of the Dharnai model will support and
exemplary DRES model.
enhance investment in DRE systems. This will be through campaigning
Greenpeace will use this model to get the
for investment in favour of this alternate and sustainable model of
government to announce policy measures
growth. It will also be used to enable Bihar’s proposal for climate
and a separate legislative policy framework
finance under the NAMA proposal in favour of similar projects.
for distributed electricity delivery system by
We will continue to raise awareness amongst villages in Bihar so that
showcasing successful on-ground feasibility
they can also demand an energy revolution akin to Dharnai.
and viability. Thus, securing and enhancing
investment in DRES.
Ho w is it a r e p l ic a b l e m o d e l ?
be connected to a smart-grid anytime.
The way the micro-grid has been designed,
it can be put up anywhere within three
months without massive land and other
The Dharnai model is based on Greenpeace’s E (r) cluster report. It is a
resources. All that is required is policy
modular system that uses standard components and hence is easy to
support and government will to execute it.
replicate across wide areas with varying geographic characteristics.
The tariffs and operation and maintenance
are all in consultation and agreement with
However, detailed resource assessment, cost evaluation, demand
the residents, making it an inclusive model.
profile forecast and power system simulations are required to see if a
Moreover, it is grid-interactive and hence can
particular micro-grid design is viable in a specific location. xxxi
S o l a r p a n e l s i n s t a l l e d o n t h e K i s a n Tr a i n i n g C e n t r e I n D h a r n a i R e v e n u e V i l l a g e
© r a vi s a h a n i / g r ee n p e a c e
M E D I A M AN U AL | T h e W a y A h e a d
35
T h e Bi h a r g o v e r n m ent is b u s y t r y in g to g et co a l
l in k a g es a n d n u c l e a r p o w e r p l a nts a n d b u y in g
e l ect r icit y f r o m ot h e r st a tes . W h y is it not t h in k in g
t h e DR E S w a y ?
The state government is looking at DRES in big way. It has already
government has already announced and
announced different programmes and has done large investments
started different schemes in different
within four years on renewable energy, especially DRES. The state
departments.
Name of Department
Education
Fisheries
Urban Development
Minor Irrigation
Energy – BREDA
PHED
Chief minister house
Chief justice house
Bihar government secretariat, Patna
Bihar police
Cooperative
Energy
TYPE OF SCHEME
Solar roof-top - 4115 school will be covered
Niche machli upar bijli project - 100 MW
Solar street light programme - 18 cities
Solar pumps scheme with NABARD
Saur Sichaie Yojana
Solar-powered pumps for drinking water
Solar roof-top - 70 kW
Solar roof-top - 70 kW
Solar roof-top
All jails solar roof-top based micro-grid
All PACS [primary agriculture cooperative society
office in each district on bio-mass solar powered]
Street light programme with rural development
department
W h a t r o l e w i l l t h e g o v e r n m ent nee d to p l a y to
s u p p o r t t h e ex p a nsion o f m ic r o - g r i d s ?
The government of Bihar will need to launch a dedicated programme
as financial, legal and policy, institutional
for proving energy access through renewable energy-based micro-
and technological barriers to facilitate the
grids. The government will have to address various barriers such
expansion of micro-grids based on renewable
sources in the state of Bihar.
Vi l l a g es h a v e ne v e r b een on t h e r a d a r o f t h e
g o v e r n m ents . W h y d o y o u t h in k t h e g o v e r n m ent w i l l
no w s h o w inte r est in t h e m ic r o - g r i d es p eci a l l y f o r
r u r a l e l ect r i f ic a tion ?
Villages house about 72 per cent of the country’s population. Hence
As Dharnai displays, villages are no longer
it is a huge vote bank, a large area to be governed, a huge potential
content agricultural setups. They are raring to
for revenue and growth. All these factors can no longer be ignored.
go, are new markets and hold a tremendous
36
M E D I A M AN U AL | T h e W a y A h e a d
potential for development and growth.
it intends to sustain its GDP and growth. And energy access will be a
India will have to develop its rural areas if
crucial factor for all this to happen.
Wit h t h e m one y a n d p o l itics a r o u n d co a l , w h y d o y o u
t h in k g o v e r n m ents w i l l s h o w inte r est in r ene w a b l es ?
There is no doubt that renewables is where
the fact that the energy access market or the off-grid renewable
the money is and where the market is.
energy market is estimated to be around $2 billion. With the rapid
The other sources of energy like coal and
pace at which renewables are growing and the pace at which they are
nuclear are no longer investment friendly.
completed, they are increasingly attracting investors as the cost of
The renewable energy market is growing
financing for renewables is way much lower than conventional energy,
and the investments are also increasing
at least in India, where the cumbersome process and clearances
(over $200 billion globally and around $6
required for conventional power is making it unviable. In this scenario,
billion in India according to a report – Global
governments are more likely to consider renewable for energy access.
Trends in Renewable Investment), and also
C onsi d e r in g t h a t t h e cost o f m ic r o - g r i d e l ect r icit y
is ex p ensi v e t h a n t h e g r i d e l ect r icit y , w h y w i l l t h e
g o v e r n m ent r is k its v ote b a n k b y t a k in g u p t h e c a se
o f ex p ensi v e e l ect r icit y ?
Putting the costs in perspective,
1. The price of coal is constantly rising. With limited coal reserves, the state-run Coal India has been unable to meet
its target for six years in a row, and with power producers looking for expensive imported coal, tariffs are bound
to increase. xxxii There has been a 50% rise in the cost of international procurement of coal for Indian power
producers since 2004. xxxiii In the last 10 years power generation prices have risen by more than 300 per cent. xxxiv
As a result, utilities have passed on the costs to consumers. Subsidised power users like Delhi have seen a rise in
power tariffs by more than 25 per cent in the last few years. xxxv
2. Meanwhile, quietly and steadily, prices for renewables are coming down. At the beginning of 2011, the cost of a
ground-mounted MW-scale solar power project in India was around INR 14m (EUR 2.15m, USD 2.8m) per MW.
Today, this has fallen by almost 50% to around INR 7m (EUR 1m, USD 1.4m) per MW. The cost reduction has been
driven largely by a drop in module prices from USD 1 per watt in 2011 to USD 0.65 per watt today.xxxvi Module
prices have fallen globally largely due to a condition of acute oversupply. Against global demand for 30-35 GW of
solar power in 2012, available supply was 50-60 GW, most of it from China.xxxvii
The cost to the Bihar government in procuring
It is the prerogative of the government to provide electricity to the
electricity is Rs 8.84/unit and the power is
people. If there is power to villages through a bottom-up approach,
distributed at Rs 4.11/unit. Clearly, this is
the vote bank in much happier and this is a win-win situation for
resulting in huge losses for the state-run
politicians.
utilities and leading to the systematic failure
of the sector in the state.
M E D I A M AN U AL | T h e W a y A h e a d
37
W h a t w i l l b e G r een p e a ce ’ s r o l e in t h e p o l ic y
framework?
Greenpeace will showcase this model to advocate for the right
policy framework required for further large-scale replication and
expansion of such models across the state of Bihar, and communicate
to all stakeholders the benefits of a bottom-up approach to rural
electrification.
Greenpeace will play the role of a catalyst – to garner support for this
approach towards electrification and engage with key stakeholders
to work towards ensuring that the government of Bihar will include
renewable energy-based micro-grids as a means for providing rural
energy access.
38
M E D I A M AN U AL | T h e W a y A h e a d
i
http://www.greenpeace.org/india/en/about/
ii
Providing Energy Access To Rural Bihar: An Analysis And Policy Options, Dr Anjula Gurtoo, IISc, Bangalore
iii
http://www.worldenergyoutlook.org/media/weowebsite/energydevelopment/weo2011_energy_for_all.pdf
iv
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY2/0,,contentMDK:22855502~pagePK:210058~piPK:210062~
theSitePK:4114200,00.html
v
http://en.wikipedia.org/wiki/Electricity_sector_in_India
vi
http://en.wikipedia.org/wiki/Electricity_sector_in_India
vii
http://planningcommission.gov.in/plans/planrel/12thplan/pdf/12fyp_vol2.pdf
viii
Researchjournali’s Journal of Economics, Vol 2, Jan 2014, Power Sector Plan Outlay and Expenditure in India, Ningappa
Koujageri, Honakeri P M
ix
Sreekumar N and Shantanu Dixit, “Rajiv Gandhi Rural Electrification Program- Urgent Need for Mid-course Correction.” Prayas
Energy Group, Pune, India, July 2011.
x
http://www.downtoearth.org.in/content/growth-renewable-energy-india
xi
http://indiatoday.intoday.in/gallery/coal-scam-how-india-lost-rs-1.86-lakh-crores/1/7610.html
xii
http://www.thehindu.com/business/Industry/subsidies-for-power-distribution-firms-to-rise-to-rs-60000-cr/article5067904.ece
xiii
Future of Coal Electricity in India and Sustainable Alternatives, World Institute of Sustainable Energy
xiv
http://mospi.nic.in/research_studies_post_clearance.htm
xv
Equitable sharing of benefits arising from coal mining and power generation among resource rich states, TERI, 2013, http://
planningcommission.nic.in/reports/genrep/rep_mining_power_generation.pdf
xvi
A citizen’s guide to energy subsidies in India, TERI, IISD, 2012
xvii
http://www.firstpost.com/india/how-indias-coal-crunch-is-giving-a-boost-to-solar-energy-1412505.html
xviii
Source: ARRs of Delhi DISCOMs
xix
http://www.indianpowermarket.com/2013/06/electricity-prices-to-further-increase.html
xx
Rooftop Revolution:
xxi
Rooftop Revolution:
xxii
http://www.reuters.com/article/2013/03/26/suntech-glut-idUSL3N0CG03820130326
xxiii
http://www.bridgetoindia.com/blog/off-grid-solar-lighting-market-in-india-set-for-take-off/
xxiv
http://www.bridgetoindia.com/blog/off-grid-solar-lighting-market-in-india-set-for-take-off/
xxv
E (R) cluster for a Smart Energy Access: The role of micro grids in promoting the integration of renewable energy in India, page
21-22.
xxvi
E (R) cluster for a Smart Energy Access: The role of micro grids in promoting the integration of renewable energy in India, page 23.
xxvii
Bigha – In Bihar, Bigha is a traditional unit of land &1 Bigha is equivalent to 20 Kattha each worth 1361 sq. ft. (126.44 m2).
xxviii
http://www.bridgetoindia.com/blog/off-grid-solar-lighting-market-in-india-set-for-take-off/
xxix
http://www.bridgetoindia.com/blog/off-grid-solar-lighting-market-in-india-set-for-take-off/
xxx
http://www.bridgetoindia.com/blog/off-grid-solar-lighting-market-in-india-set-for-take-off/
xxxi
E (R) cluster for a Smart Energy Access: The role of micro grids in promoting the integration of renewable energy in India, page 13.
xxxii
http://www.firstpost.com/india/how-indias-coal-crunch-is-giving-a-boost-to-solar-energy-1412505.html
xxxiii
Source: ARRs of Delhi DISCOMs
xxxiv
http://www.indianpowermarket.com/2013/06/electricity-prices-to-further-increase.html
xxxv
Rooftop Revolution:
xxxvi
Rooftop Revolution:
xxxvii
http://www.reuters.com/article/2013/03/26/suntech-glut-idUSL3N0CG03820130326
M E D I A M AN U AL
39
Greenpeace is a global organisation that uses non-violent direct action to tackle the most crucial threats to
our planet’s biodiversity and environment. Greenpeace is a non-profit organisation present in 40 countries
across Europe, The Americas, Asia and the Pacific.
It speaks for 2.8 million supporters worldwide, and inspires many millions more to take action everyday. To
maintain its independence, Greenpeace does not accept donations from governments or corporations but
relies on contributions from individual supporters and foundation grants.
GREENPEACE INDIA SOCIETY
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