Indo-Norwegian Pilot The 30 Village Project Key Learning's 2 nd July 2012

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1 page 1 Indo-Norwegian Pilot The 30 Village Project Key Learning's 2 nd July 2012

2 NGO - Pradan 10 Villages 60.18kWp page 2 Impact of Solar Plant Small group of children went to reeling centres to study during the evenings. Women started working on the new power operated reeling machines relieved from drudgery of peddling with old machine. Charging of Mobile is the most common activity and villagers don t need to travel 3-5 Kms for charging their mobile phones. The light in the reeling shed has become a good place to meet by the villagers listening to the music from mobile. Household electric supply has been started in Salgatand village The power station Kurawa was used for trial for new reeling technology by Central Silk Board. Women from other villages, government officials, other NGOs visited the plants and this has spread message for the use of Solar power in rural electrification. Observations and experience Working with very poor communities and low economy income groups leads to sustainability issues of the power plants. RGGVY program in each village impacted the overall motivation of the villagers to consume power for other purposes as under this scheme BPL families are given free electricity. It acts as a competitor to the model and negates the sustainability. Attempts made With the community mobilisation funds, village Salgatand has been electrified through poles from the Solar power plant at reeling center. With success of above in coming days, villages like Kurawa, Bara, Danidih and Fitkoria will be replicated with the same model.

3 NGO -Pradan 10 Villages 60.18kWp page 3 CSB Scientists conducting tech trial at Kurawa using solar plant ildren use the CSPP light for night study CSPP used for household connection at Salgatand Exposure to CSPP for others

4 NGO -Pradan 10 Villages 60.18kWp page 4 CSPP used in charging mobile and solar lantern CSPP used for use computers at Salgatand Daily collection register

5 NGO Haritika 7 Villages kwp page 5 Impact of Solar Plant Women used to work in nights with Kerosene lamps that yield smoke has been stopped and reduced health hazards Mobile charging can be done at their home which earlier needs to be done away from village in near by small towns or cities travelling 3-5kms. Children can study during the night and has enhanced their over all performance and increased the results significantly. Villagers are able to watch TV and other modes of entertainment which they could not afford before. Viillages with solar power are popular in the region and has enhanced the self esteem being proud users of Solar Power. In Manpura and Narwara, basics of computers are taught to school children as power is available. Before these computers remained unutilized. Observations and experience Capacity Builidng of VEC members should be conducted on regular basis. VEC members should be changed from time to time so that participation from the whole community is simulated to foster community ownership of the project. Defaulters must be tracked regularly and fine or disconnection must be done depending on the decision of VEC. Attempts made In Manpura tailoring and stiching for the villagers has been started and increasing the income generation in the families of Manoj and Raju Namdev. New initiates as water supply scheme, irrigation facilities and water quality control labs has been setup.

6 NGO -Srijan 07 Villages 79.38kWp page 6 Combined VEC meeting Siddhbaba VEC meeting Training of operator

7 NGO Srijan 7 Villages 79.38kWp page 7 Impact of Solar Plant Presently 31 farmers in villages Reula and Chapani are working with in horticultural based livelihoods. In one plot of Reula drip system has been installed for irrigating vegetables as well as fruit which will operate through solar based energy with the help of small electricity pump. Now some people are demanding power from VEC for establishing flour mill and rice mill in this villages. So in future many other micro enterprising activities can be done by using the solar power. In these villages mostly in rainy seasons some people used to die of snake biting at night due to darkness while walking within the hamlet. But now due to street light people able to move from one hamlet to another safely at night. Observations and experience Time to time monitoring of plants to ensure viability of plant. More capacity building program for operators and VEC members. Fund support for introducing income generating activities and to connect more households in villages to increase consumption. Providing technical support in case of any technical fault on time. Attempts made To demonstrate techno commercial viability of solar grid, linking families with energy based commercially viable income generation activity such as rice mills, flour mills, computer education centers, vegetable cultivation as a regular source of income etc.

8 NGO Ledeg 4 Villages kwp page 8 Impact of Solar Plant Villagers are happy on getting electricity for the first time through the solar power plants and happily agreed to run the systems through village energy committees (VECs). Enrolment of people directly with the implementation and management of the project was very good for the success of the project. Observations and experience This kind of project is very good for Ladakh region as the villages are scattered and transmission of power from Grid is expensive. The programme is highly appreciated and liked by the people of the remote villages. However, the LEH Renewable Energy Development Authority (LREDA)and the Kargil Renewable Energy Development Authority (KREDA) have, of late, started the renewable energy programme of the Ministrry of Non-conventional energy resources on very large scale through out Ladakh. Hence, further projects by Scatec solar or any other agency will only lead to duplicity of effort. The areas / villages should be clearly specified incase similar programmes are to be implemented through different agencies in the future. There has been no new initiative, worth its name, in the project villages. However, the people of some villages have been able to earn a little more money at their way side tea stalls and canteens due to the lighting facilities. The people reported of some enhancement in their earnings due to handicraft activities and the education of the children have also been positively impacted in addition to the over all sense of well being and happiness.

9 Key Lessons from the project page 9 Selecting villages above a certain size is essential as there are prohibitive fixed costs for the smallest village installations Battery banks are costly, combining PV with a second power source in a hybrid set-up is preferable Using existing grid infrastructure would help keep cost down (e.g. mini grids for DG sets) Dimensioning of the PV system is crucial but very complex in a greenfield setting Investment support is needed, preferably also subsidizing the power sold to the end-user, not merely the up-front capital investment Proving guarantees for off-take is required, e.g. a first loss mechanism Systems should first be introduced where the alternative cost of energy is high Mobilization and motivation of NGOs and villagers is key Tariffs should be dynamically set (e.g. higher tariffs at night). Price discrimination should be deployed where commercial off-takers are able to pay a higher price for power than residential consumers Commercial loads are important for these types of systems. Purely domestic off-take could often be better served by other systems and business models (micro financed, self-owned home systems) NGOs would need to take full ownership and be actively promoting optimal use of the systems Geographically, all installations should be clustered in one homogeneous location

10 page 10 Summary VEC Village Revenue Collection Statement Summary of Bank Account Details - Srijan Siddhbaba VEC, Chapani Rs ThakurbabaVEC, Chapani Rs Kudritola VEC, Reula Rs School tola VEC, Reula Rs Kyotabandha VEC, Reula Rs Debritola VEC, Reula Rs Seth tola VEC, Reula Rs Summary of Bank Account Details - Pradan Kurawa Rs.9800 Danidih Rs Salgatand Rs Bara Rs Choukitetar Rs Ranabandh Rs Fitkoria Rs Telaitand Rs Gandharakpur Rs Chukapani Rs Summary of Bank Account Details - Ledeg Maan Rs Shayok Rs Tashi Stongde Rs Juldo Rs. 8935

11 page 11 NGO Summary Sheet NGO Name Installed Capacity Budget -Capacity Building & community Mobilisation Amount Received from Ireda (approx) Amount Disbursed as on date Amount to be disbursed by September 2012 NGO- HARITIKA kWp NGO- LEDEG 38.16kWp NGO- PRADAN 60.18kWp NGO - SRIJAN 79.38kWp Scatecand NGOs has agreement for 2 years which has expired in October 2011 Scatecrequested the NGOs to still run and support the program until September 2012 without any additional costs to the program and with the same budget Status:- Issues:- NGOs needs to be paid latest by September 2012 all the outstanding amounts as per the verbal agreeement.

12 page 12 Hardware Summary Sheet Status:- NGO NAME Total Budget 20% 50% 20% 10% Unpaid Pradan - Scatec 2,38,12,897 47,62, ,19,06, ,62, ,81,289.7 Haritika - Scatec 4,18,69, Srijan - Scatec 3,20,56, Ledeg - Scatec 1,90,72, Difference NIL NIL NIL Total % payments against hardware has been released to Scatecand further disbursed to DD Solar % against Completion report and Audit report reports has been submitted to all the stake holders. Request : Release of last 10% at the earliest

13 page 13 Decisions Maintenance is for 3 years instead of 5 years. -as per the latest communication from Iredato Scatecwe need to maintain for 5 years whereas the agreement is only for 3 years from the date of commissioning. NGOs payments to be released on or before September If we need to extend the program, we need to pay the agreed price to NGOs latest by September % payments for Hardware costs. Vendors needs to be paid immediately to keep the confidence and technical support with us. Additional resources/ funding for continuing support from NGOs. If any extension to the program is intended from the funders, NGOs must be involved and budget must be seekedfrom them to support the sustainability of the project.

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