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Session 3: Energy Services: Rural Electricity Barriers to and Incentives for Promoting Renewables
In this Presentation
1. Why Rural Electrification through Renewable Sources 2. Rural Electricity Access 3. Rural Electrification initiatives of GoI 4. Provisions under different schemes 5. Main Barriers 6. Key Learning 7. Few Projects Highlights/Glimpses 8. TERIs initiatives to improve Rural Electricity Access 9. In sum
Electrifying all villages and habitations Providing access to electricity to all rural households Providing free-of-charge connections to Below Poverty Line (BPL) families
Ministry
Technology preference
MNRE
95 % projects SPV
MNRE
Biomass and bioenergy
MoP
No preference
Energy applications
Lighting
Management
O&M
Viability gap between O&M and revenue generated funded for 5 years (upto 8% project costs)
Main Barriers
Policy and Regulatory
Competition from conventional grid Tariff Subsidy under Grid Extension Program Higher tariff charged to off grid users compared to grid electricity tariff No clarity on status of stand alone plants on eventual arrival of grid Inadequate support under viability gap funding mechanism Poor response from states and project developers.
Institutional
Weakest link in many of projects with less uptime due to absence of project ownership Poor Maintenance and servicing of equipment Long term fuel supply arrangements in case of biomass Monthly tariff realization challenge on continuous basis Absence of role clarity between different stakeholders
Lack of programs to improve economic benefits and productivity from modern energy access
Technology Development
Dissemination
Study the energy poverty, inequality across income class groups and between regions
Setting up Solar charging stations, entrepreneur based business model, total 800 kW biomass gasifiers system
Charging stations expandable to solar energy hubs, providing services like water purification, mobile & battery charging
Technical Resource Centres, an after-sales service network for responsive repair services through local community representatives
21 States
5 countries
> 1500
green jobs created
> 60
NGOs involved
In Sum:
Energization based on renewable sources of remote areas is not an easy process: it requires sophisticated approaches and long-term planning Projects must adapt to local conditions; across different income groups in different regions, the mobilization of local communities is essential. Promotional aspects of Renewable Energy based Rural Electrification policies Need for additional policy and regulatory mechanisms to delink the project financial viability from the high consumer tariffs being levied on the offgrid consumers. Compliance related aspects of Rural Electrification projects so that a greater diversity of models, many of which have been demonstrated by different agencies are able to find space, benefit from and influence policy through good practices. To address specific Stress Points in policy, such as: Problems faced by project developers amongst which, for example, dialogue between DRES plant owners and state DISCOMS is an urgent need DRES grid interconnection to the local LT Network innovative business models that could be supported under a more conducive policy environment
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