Energy Access in Remote Areas

Are Micro & Pico Grids Workable ?

Presented By: Ashok Madhukar & Shweta Agarwal

Afro-Asian Development ConsortiumNew Delhi

August 7, 2014

Micro & Pico Energy Grids

Remote areas either do not have access to energy or totally unreliable supply systems

Poor quality of life due to lack of energy infrastructure and resultant opportunities for income generation / livelihood

Workable?

Micro and Pico grids are the only workable option for remote areas for generation and distribution of energy and environmental management

We need to understand the system constraints of all the stakeholders and their removal/reduction

Design Structural and Operational Sustainability

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Engineering Sustainability

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SUSTAINABILITY

Program/ Project Design &

Delivery ResourcesHR & Funds

Need: Demand Driven

Ownership & Participation

Lessons Learnt :Remote Area

Need Identification Few people want to go there : organizations ability to

reach out is low Funding for need assessment and appropriate project

design Feasibility study costs more than the project- strange

but true

Delivery Capacity This situation encourages local cartels who deliver:

Substandard work, charge multiple times, have little or no capacity for O&M support

Urgent need to build the last mile local delivery capacity

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Lessons Learnt :Remote Area contd…

Higher Cost of Acquisition leads to; higher cost recovery ability to pay drops

Lessons Learnt : 1. Build Core Teams/ Contractors locally for the design,

development, implementation , operation & maintenance and monitoring of the project.

2. Funding for the needs identification, project design and development with the community acceptance and participation: generally about 10% of the project

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EmpowermentRE: Dual Contribution

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SOCIAL INFRASTRUCTURE

Power & Fuel

LIVELIHOODSIncome Generation

Activities

Renewable Energy Dual Contribution

ACCESS Ability to Pay

AVAILABILITY Sustained

OUTCOMEImproved Quality of

Life

Program / Project Design

Structural Stakeholders Commitments Community Ownership 360 Capacity Building

Understanding Each link is critical

Start Up Support HR Funds

Operational O&M Local Capacity Local Participation Cost Recovery

Ability Willingness

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Structural Design is critical for Operational Success

Local Communities

Identification of needs / opportunities: Acceptance and help of the local community for the

surveys and information collection

Willingness of the Community: Ownership: Accept the project Participate in the project development O & M local entrepreneurs and build capacity Share in the cost of services used

“Partners in Progress” approach needed with the community rather than “Beneficiaries”

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Missing Link: Intermediaries Role of NGOs

Community mobilization and capacity building Primary need assessment Implementation support Operation and Management Cost recovery for services

Local Delivery Mechanism Agencies for design and development of the projects Implementation O& M handholding Local Entrepreneurs and operators training

Local Monitoring –Core Teams Capacity Building Benchmarks Trends Course Correction and sustainability

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Delivery Mechanisms Who will implement? : Intermediaries

NGOs- community interface Local Contractors- build and maintain

Capacity Building: Is there capacity to implement Develop and Design the local project Express the need and seek agencies

Standardization & Replication: Cost of design on case to case basis is more than the

value of the intervention itself Time Taken:

Uncertainty is the greatest barrier Staying power: mental and financial

Who is investing in the delivery mechanism creation and its capacity building ???...

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The Realty Check

Reality is that there is more money but less projects and even less understanding of the project implementation capabilities of the organization and its intermediaries

Organizations have the funds but do not have projects to fund in line with their mandates

LAD: Demand Driven/ Supply Side interventions: Assisted demand driven is the answer Inventory of local needs / projects Adopt a Village- best holistic approach and replicable

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PROJECTS : Key Actions

Simplification

Standardization

Replication

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CSR - The Road Ahead

Inventory of projects that can be funded by CSR Compatibility Matrix: geographies and domains/sectors Capacity Building of Organizations for CSR:

Funding Projects Program Design

CSR Funding Process: Awareness Standardization Transparency

CSR Attitude: CSR to pro-actively seek projects Not behave as another agency doling out funds to

beneficiaries

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Strategic Approach: LADMawlyngbna, Meghalaya

Village Profile : Altitude : 1200 m Precipitation of 8000-10000 mm Monsoon Period-6 months Population < 2000 ( 90%

engaged in farming ) Households 350 estimated

 Cluster of: 4 villages total 750-800 households 3000+ population

Provide Energy for: basic primary processing for

agriculture produce community buildings and street

lighting and communication

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Strategic Approach: LADMawlyngbna, Meghalaya

Economic Activity:The interventions are

focused on value addition to the local produce for higher economic activity and jobs in the village area and include: Warehousing Drying, Cleaning &

Grading Animal Feed Waste Management

Organic manure Potable Water

Pico Energy Interventions:

1. Pico Hydel Power 10Kw2. Bio Mass Gassifier 10 kw3. Heat Recovery for drying

agri-produce4. Solar PV system - 5 Kw5. Bio Gas for Heat Energy

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Note: Combination supports the seasonal and day / night needs of the community

Strategic Approach: LADMawlyngbna, Meghalaya

Pico-Hydro Power Plant 10 KW

Land contributed by the community Support the need for power primarily

during monsoon period and supplement the existing supply which is not reliable and intermittent

Provide convenience for street lights and lighting of community building

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ImpactEconomic - higher revenue realisation from agriculture produceSocial - Improved quality of life , self reliance & equitable distribution

SustainabilityVillage ownership and participation is integral to this community as demonstrated in other initiatives

“Let us continue the journey towards

Sustainability and Inclusive Growth”

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