Renewable energy programme in Northeast India: issues, constraints and prospects

Transcription

1 See discussions, stats, and author profiles for this publication at: Renewable energy programme in Northeast India: issues, constraints and prospects Chapter January 004 CITATION 1 READS 35 authors, including: Debajit Palit The Energy and Resources Institute 84 PUBLICATIONS 80 CITATIONS SEE PROFILE Some of the authors of this publication are also working on these related projects: Urjaa Samadhan View project Sustainability performance evaluation of decentralized energy systems View project All content following this page was uploaded by Debajit Palit on 4 March 014. The user has requested enhancement of the downloaded file.

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14 * % # # ( +; Box 1 Innovative financing mechanism: the SELCO approach Solar Electric Lighting Company (SELCO), an energy service company based at Mangalore in India has hard sold domestic solar lighting systems in the state at an envious success rate. As the price of a solar lighting system ranges from Rs /-, the rural people are unable to afford it. But SELCO has circumvented the problem by creating different marketing mechanism to suit the various categories. The lease-to-own plan was initiated which focused on establishing a steady, long-term policy while simultaneously maintaining a good relationship with the customers and building their trust and confidence. A financial model was proposed in the plan that suggested a viable payment policy in which the customer was to pay 5 % of the cost as down payment and a small monthly installment in keeping with the average monthly expenditure budget of a typical family in the region. Along with the lucrative financing scheme, the company introduced an additional one-year guarantee to the manufacturer s warranty, a 90-day money back guarantee along with a year s free service. The package was an instant success with the community and SELCO India today has six branches in Karnataka with a network of technicians and collection agents successfully marketing solar systems without subsidy to the rural customers. Source: Down to Earth Vol.10 No 11 #%'( #)*+, -*-./.01* 13

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16 6 (? + MH? #%6 ',, N>, N >, '!D '!D '!D +- Box Dissemination through NGOs and rural entrepreneurs The Appropriate Rural Technology Institute (ARTI), an NGO based at Maharashtra, India has pioneered the IC commercialization drive. The ARTI approach promotes IC technology as an income generating opportunity for the rural entrepreneurs. ARTI focuses on training and encouraging the traditional potters of Western Maharashtra to take up IC construction. Apart from training potters on IC construction, training on other skills such as conducting market surveys, costing, inventory control, tax and labour laws, advertising, etc are also provided to the potters. Initial support is also provided to them during the set up years. In response to the above-mentioned strategies, village potters have shown significant initiative in setting up businesses in IC construction. Being traditional potters, they find synergies with their other business of manufacturing and selling other earthen products. Moreover, this also result in stove manufacturers adhering to better quality control norms with innovative designs (WII 00) In India the state of West Bengal has the distinction of highest penetration of IC under the NPIC. The credit for the high penetration levels of ICs in the state goes to the extensive village level dissemination through about 150 NGOs affiliated to the nodal agencies. As a result the outreach of NPIC has been extended to the entire state. The NGOs are given complete autonomy with no interference in the operation and management of the program. The rapport building exercise being crucial to implementation of any rural development program, the NGOs solicit the help of village institutions in motivating the target users and also undertaking monitoring and evaluation of ICs. The NGOs approach ensures that development benefits percolate to the public, thereby offsetting the low confidence that is generally associated with the delivery of development assistance (TERI 001). Source: WII 00 Improved Cookstoves in India: Lessons learned RESPO VISION, Vol 18 #%'( TERI 001Evaluation of successful #)*+, practices for improved -*-./.01* stoves in India (Report no 000RE43) 15

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18 ,! *,, ; - B 1 B'!D9? Box 3 Integrating household energy into rural development programmes Substantial time saving accrue from using energy-saving stoves and efficient kitchen management practices. In an agricultural economy, this extra time is usually invested in subsistence or cash crop production. More land is tilled, more vegetable grown, more trees planted. This improves the economic situation and increases food security of the whole family. Further, improved health resulting from successful energy interventions also impacts on the productive labour capacity of rural households. The argument here is that healthy people are more productive and that high productivity improves chances of breaking the vicious cycle of poverty. Source: Klingshin A 199 Improved cookstoves as focal point of development process GTZ/GATE " )> B + )> J #%'( #)*+, -*-./.01* 17

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21 ?. +9 Box 4 Deregulated micro hydro for village electrification: the Nepal Experience For the country where only 15 per cent of its population has access to electricity, Nepal has come a long way. It took 84 years to achieve power generation of 50 megawatt; and only five years to add a whopping 15-megawatt through microhydels, an increase of 50 per cent. The community-based power generation and distribution have ushered in a social revolution. Now Nepal s remotest hills generate their own electricity in their backyard. also given the power to decide on the distribution and the cost of power. As the energy need in the hills is in kilowatt, and not in megawatt, villagers themselves took the initiative to generate electricity. Source: Down to Earth, Vol. 9 No 1 0 Nepal is the first south Asian country to privatize its power sector. In 1981, the ministry of water resources prepared a national development strategy through the utilization of water and hydropower generation and in 1985, it delicensed projects up to 1000 KW to facilitate upgradation of the ghattas (traditional watermills) for power generation. The strategy clearly stated that as almost 60 per cent of the population lives below the level of absolute poverty, small-scale projects and programmes should be taken up to directly benefit the rural masses and provide them with new opportunities for self-reliance. The government does not take any royalty or tax from these projects. Instead, it gives soft loans, subsidies (50-74 %) and tax exemptions on electrical machines as incentives. The communities were = ',=N ( (O * * B)> : #%'( #)*+, -*-./.01* 0

22 1 ( A! " '!D " %, A "! )> % # > # #+. Box 5 Lessons learned: NREL village power program Focus pilot projects in an area, where there is a local support Renewable energy solution to rural electrification should be resource and need driven rather than based on specific technology/application. Be objective and neutral in evaluating and presenting options; let the local participate and select the appropriate solutions Administrative system/procedures need to match local circumstances Adopt rural energy planning methodology to accommodate renewables Stress the value of quality of service While the debate ranges on regarding the need of subsidy for rural electricity, it is generally agreed that flat subsidies distort economic comparison of rural solutions and send wrong signal to the users. Nothing is maintenance free. Therefore maintenance support infrastructure needs to be established and nurtured. Source: National Renewable Energy Laboratory 1998, Colorado, USA #%'( #)*+, -*-./.01* 1

23 % # # A " ', ' #, +< % ', +' Box 6 The Chinese experience During the 1960s, China realized that to electrify its remote areas (48 % of its total area) it had to evolve a separate energy policy for these areas. It adopted the now-famous self-construction, self-management and self-consumption policy where the local administration owned and implemented small hydropower projects. The money came entirely from the local sources and the Chinese government limited its role to that of an observer. At the same time, it enforced technical standards and funded research into new technologies. The result was amazing: around 300 million people in rural areas got electricity through small hydropower stations they built and maintained. The village electrification, which was only 50.6 % in 1975, reached an astonishing 94.3 % in The rural decentralized electrification drive has also helped China rid its rural poverty substantially. An assessment of 08 counties shows that economic development in these areas are substantially better than the national average and the growth rate of gross industrial and agricultural output is 19.4 per cent higher than the national average. Source: Down to Earth, Vol. 9 No 13 " % B B? #%'( #)*+, -*-./.01*

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