INTEGRATED RURAL ENERGY PROGRAMME (A PROGRAMME FOR RURAL ENERGY MANAGEMENT)

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1 INTEGRATED RURAL ENERGY PROGRAMME (A PROGRAMME FOR RURAL ENERGY MANAGEMENT) The Integrated Rural Energy Programme / Planning is a centrally sponsored scheme. It was conceptualized during the sixth Five Year Plan in the year 1981 by Planning Commission, Govt. of India as a pilot programme in four states in the country and later launched as regular programme during the seventh Five Year Plan period. This programme was transferred to Ministry of Non- Conventional Energy Sources (MNES) in and At present, the programme is being implemented by Ministry of New and Renewable Energy (MNRE) Formerly MNES, Govt. of India.

2 The programme was modified during and a Modified IREP on cost sharing basis (50:50) between Centre and States was implemented by some States during the period of to districts had been covered under the programme upto in 20 States and one Union Territory.

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4 Background and Genesis Energy is a crucial input not only for development but also for subsistence (Cooking, Heating and Lighting etc.). The nexus between energy and the process of development need not be over emphasized. Depleting conventional energy sources like fossil fuels can not ensure the growth that is sustainable. Energy use in the developing countries has been increasing at a faster rate and it is expected to increase even faster now, driven by rising population, urbanization and ambition for modernization with improved quality of life.

5 This is all the more so for rural areas in developing countries like India where over 70 per cent of India s population lives in 5.87 lakh villages. The Indian villages are characterized by low employment /income /low paying capacities, low standard of living and extremely low energy intensity lifestyles. As per some estimates, while 1/4th of country s population living in urban areas consume 80 per cent of commercial energy, the remaining 3/4th living in rural areas consume only 20 per cent of commercial energy. Apart from this, over 80 per cent of the population in rural areas is dependent upon biomass / low grade and substandard fuels for meeting its cooking needs and only 44 per cent of rural households have access to electricity. Use of kerosene is the primary means of lighting and more than 77 million households.

6 As in most of the developing countries, the fuel mix in the rural areas in India is characterized by the predominance of Bio-Fuels. As per some studies in this regard, the trends in biomass fuels like fire wood, agricultural and animal wastes, show that about 250 million metric tonnes a year, fulfill about 1/3 of the total energy needs and over 3/4 of all household energy needs. The indiscriminate use of non-commercial / traditional sources of energy including fire wood, cow dung and crop waste has resulted in the shortage of these resources leading to energy crisis and also resulted in large scale degradation of environment.

7 Moreover, the rural population also demands and deserves a better living standards. Rural areas are not only worst effected from poor availability of commercial energy but also suffer from inability in use of non-commercial energy. A majority of Indian rural population rely extensively on traditional and conventional fuels, which are available at zero cost. With this we can see that our rural areas are facing the problem of energy crisis and if proper measures would not be taken, the problem will increase further. Against this background, some measures were taken by the Government of India to meet the growing rural energy demand by improving the existing sources of energy and harnessing new and renewable sources of energy. The National Project on Biogas Development (NPBD) AND National Programme on Improved Chulhas (Improved Cook Stoves) of Ministry of Non-Conventional Energy Sources (MNES) ARE major examples.

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10 The Planning Commission, Govt. of India have developed an Integrated Rural Energy Programme/Planning (IREP), which provides framework for investment planning and optimal allocation of resources for meeting rural energy needs in the most cost effective manner through the least cost mix of various energy resources involving conventional, non-conventional, commercial and non-commercial resources for rural areas.

11 The programme was introduced / conceptualized in Sixth Plan with the main objective of developing the institutional mechanism, trained manpower to prepare and implementing block level energy plans/projects. The IREP was extended to 252 blocks in the Seventh Plan period and by the end of the Eighth Plan period, it was extended to a total of 660 blocks in 25 states and 7 union territories in the country.

12 This programme was developed in three phases in each state - Phase I Involved setting up of a state level working group consisting of representatives of different concerned departments, to prepare and approach paper on the rural energy problem in the state, and develop the concept & design of the integrated rural energy programme & area based IREP projects. Phase II Involved selection of pilot block & districts for preparation of IREP projects for these blocks. Phase III Preparation of IREP plan & its implementation in the selected blocks was taken up. Such plan envisaging the optimum mix of different sources of energy, conventional & non-conventional, commercial & noncommercial, is provided for meeting the different energy needs for subsistence (Cooking, Lighting and Heating etc.) & productive purposes (Agriculture, Irrigation, Mechanization) and non-farm activities (Rural indust ries & commercial) of the different income groups living in that area.

13 Cooking on Biogas

14 Objectives of IREP The broad objectives of IREP may be summerized as follows To augment energy consumption level of rural areas so that rural-urban disparity in this regard is reduced. To improve the quality of energy consumption i.e. (a) Reduce dependence on non-commercial / traditional sources and nonconventional sources. (b) Reduce energy consumption in domestic sector and increase proportional consumption in other areas/sectors Agriculture, ISB (Industries, Services and Business) & transport, of the rural economy. (c) Ensure optimal / cost effective energy resource mix. To promote energy saving non-conventional technologies / devices. To promote energy consciousness / awareness amongst village population to improve their living standards.

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16 Contents of the Programme The major feature of IREP is the preparation and implementation of area based, block level, integrated rural energy plans and programmes through which the optimum / least cost mix of all types of energy sources for rural energy needs. This programme is based on Micro Level / Decentralized Planning Approach. This programme is considered to be unique in a sense that it recognize the usefulness of the programming models in the preparation of the decentralized block energy plans.

17 This IREP plan is prepared for the Five Year Plan period based on energy surveys on energy consumption pattern in different sectors for different activities and end-uses and taking into consideration energy option available with the region for present and future energy requirements. Based on the data generated through the energy survey in the block, energy demand for the next five years is projected using an appropriate demand forecasting method, after taking into account ongoing and proposed developmental activities in the area. In the next step, after studying the techno-economic feasibility of different energy technology / source options, the least cost mix of energy supply options for the plan horizon are suggested using an appropriate optimization model. These block IREP documents of different states and UTs (Union Territories) are communicated to the implementing ministry for formulating a National Energy Plan to optimize the use of scarce energy resources for the planned development of the rural areas.

18 Cooking in Box Type Solar Cooker

19 The major components of IREP include - (a) Setting up of a project cell in the block, consisting of professional engineers and extension staff. (b) Demonstration of different energy technologies and options among the rural people. (c) Extension of programme utilizing local organizations, including voluntary organizations. (d) Provision of financial incentives to the users. (e) Training (f) R & D grants for manufacturers. Through this, combination of demonstration-cum-extension-cum-financial incentives, and involvement of the people & institutions in the area, target set out for changing the existing pattern of energy consumption to a desired pattern as worked out in the block level Integrated Energy Plan are sought to be achieved.

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21 Cooking on Parabolic Dish Concentrator Solar Cooker

22 The Organizational Mechanism This is for the implementation & monitoring of IREP programme includes the Ministry of Non-Conventional Energy Sources at the apex level, which implements and monitors the programme & a state level cell (Nodal Agency). District level cell & block level cells supported by appropriate / suitable staff. The state IREP Cell / Agency is responsible for monitoring and implementation of IREP projects in the state. These state cells / IREP nodal agencies are under direct control of officiating ministry / departments Panchayati Raj and Rural Development, Science and Technology etc., in their respective states. These state cells compile data on rural energy consumption pattern, energy demand and supply pattern elicited from the block level projects as well as data collected from other sources for preparing comprehensive state level rural energy plans for meeting out energy requirements of various sectors for the next five years.

23 Various units have been created under IREP (a) Block level IREP cells (b) State / UT level IREP cells (c) IREP monitoring institutions (d) State level technical back up units (e) District level technical back up units (f) Regional training-cum-r&d centres

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25 Financing Mechanism The financing part of the programme has two components, viz. Central Sector Component and State Sector Component. Central Sector Component (CSC) It includes the Centrally Sponsored Scheme (CSS) for developing capabilities in the states & UTs for preparing and implementing integrated rural energy plans / projects. The centrally sponsored scheme provides grant-in-aid for professional and supporting staff in the IREP project cells at the state level & district / block levels and for the training of these personnel along with a provision for preparation of project report & for extension work.

26 State Sector Component (SSC) The SSC outlay is utilized for the implementation of integrated rural energy plan / projects including funding of demonstration activities, financial incentives for various energy devices, extension and other related activities for the implementation of the plan. Funds and resources from other ongoing schemes and programmes for energy & rural development in the IREP blocks are utilized to the extent possible, for taking up aforesaid activities.

27 Cooking on Traditional Improved Chulha

28 Modified Integrated Rural Energy Programme (Modified IREP) The scheme was modified during on the basis of feedback received from states, evaluation studies and discussions in the,ministry and with the Planning Commision. Under the Modified IREP, district is taken as a unit of planning in the place of block. The modified IREP aims at preparation end implementation of micro level energy plans for cluster of villages to meet the energy requirements for both subsistence and production needs using an optimum mix of all the available sources of energy. These micro level energy plans are taken up for implementation as model projects and subsequently expanded to the macro level for Districts and States. An important component of IREP is the capacity building initiatives of State Nodal Departments / Agencies through district level IREP cells by pooling the resources from different programmes being implemented by MNES as well as various developmental activities being taken up in the rural areas, with a focus on development.

29 The Ministry of New and Renewable Energy had been implementing the centrally sponsored scheme Modified Integrated Rural Energy Programme (IREP) on 50:50 cost sharing basis with the States from to The programme aimed at development of planning and institutional capabilities of the States to prepare and implement rural energy projects in the selected clusters of villages. Renewable Energy and energy conservation devices were installed in the projects taken up under the programme to meet energy needs in identified village clusters. Under the IREP Programme, there was a provision for preparing the microlevel energy plans for selected clusters of villages. The Programme was implemented upto Tenth Five Year Plan i.e. upto only. The modified IREP scheme was implemented in 21 States / UTs covering 323 districts in the country.

30 State-wise details of the districts and villages covered under the modified IREP programmes on This information was given by the Minister of State in the Ministry of New and Renewable Energy Shri Vilas Muttemwar in a written reply to question in the Lok Sabha on Friday, November 30, Source :

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