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Balawant Joshi Director, ABPS Infrastructure Advisory Pvt. Ltd. June 04, 2012
Willingness to Pay
Lighting: Equivalent to monthly Kerosene cost (30-120 Rs/month) Varies with region/area (higher with higher monetary income) Higher in some areas who are already using DG set electricity for light Rs 10-15 per kWh (equivalent to DG price)
Costs incurred by currently un-electrified households is far more than costs incurred by electrified
National level schemes could not account for local resource issues
Large scale deployment & optimization of subsidy were not objectives Consequences of grid expansion are not considered Existing policies/programmes are inadequate for large scale deployment
ABPS Infrastructure Advisory Private Limited
Practical Solutions to Real Life Problems
Characteristics of PRI
Business model proposed in PRI must work in off-grid & grid connected set up Consumer should not pay more than
Electricity tariff in adjoining areas (not more than DISCOM tariff) Existing expenditure on lighting load
Compliant with EA 2003, existing policies Create structure for flow of subsidy As far as possible, internalization of costs of Rural Electrification Should make use of existing institutional structure Avoid conflict between programmes of two ministries Should promote private sector involvement
ABPS Infrastructure Advisory Private Limited
Practical Solutions to Real Life Problems
Subsidy, if required
DISCOM
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Project Developer
Consumer
Consumer
Consumer
Consumer
Practical Solutions to Real Life Problems
GoI
CFA Model Franchisee (optional) Scheme
FOR
Model Regulations for Off-Grid Supply
CEA
Model grid connected guidelines
State Govt
SERC
Regulations for Off-Grid Supply FIT Order
RLB
Confirm unelectrified status of village / hamlet Consent Franchisee Agreement
DISCOM
PPA
ODGBDF
Maximum certainty of revenue to the developer Proper integration of off-grid projects with grid as and when is feasible Would enable large scale deployment of off-grid projects Internalisation of costs of rural electrification DISCOM can meet meet twin objective of electrification and RPO
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