Sustainable rural electrification concerns and issues

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Sustainable rural electrification - concerns and
issues
Dept. of IME, IIT Kanpur Short-term
Course Challenges and Implementation Issues post
Electricity Act 2003 Regulatory, Policy
Technical Solutions April 10-14,
2004 This document can be downloaded
from www.iitk.ac.in/ime/anoops

• Dr Anjula Gurtoo
• Indian Institute of Management Lucknow

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Rural Electrification (RE)

• Scheme of the presentation
• The Indian RE scenario some facts
• The International RE scenario examples of some
  countries
• Concerns and issues for India
• Alternatives/solutions ?

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Indian Scenario An Update

• Some facts
• Rural Electrification Corporation (1969), IRDP,
  IREP, NEDA
• 63 of rural households without electricity
• Only 62,000 villages and 18,000 remote villages
  not connected with grid (how real?)
• Hamlets not accounted for (pop.50-200, within
  1-3 km of main village)

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Indian Scenario An Update

• 10th 5 year plan (2002-7) electrify 62,000
  villages. 18,000 remote villages by
  non-conventional sources
• REST mission (MOP) electrify all villages by
  2010, loan of 10-15,000 crores at 2-2.5 interest
• Cost of electrification
• Estimated 20 lakh per remote village ( including
  60 hh with solar systems, 2-4 pumps). If 90
  grant from govt., then Rs. 1,500 per hh for
  single bulb connection
• About Rs. 6000 crores for total rural
  electrification.

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International Scenario A review

• Some facts
• The US Electric Cooperative Program of 1935
• Renewable energy versus grid
• Linking rural supply to value add industries
• Government role in building systems (on loan or
  otherwise)
• Agriculture Students as resource

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International Scenario A Review

• Cases of
• Europe
• US
• Philippines
• Bangladesh
• Zambia
• Russia

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Concern for economic efficiency viability

• Cost of capital
• Per connection, per KW
• Operation and maintenance
• Efficient and rational use of resources
• Energy consumption vs. energy services non farm
  income through value add products
• Mix of HH, agriculture, commercial and industrial
  activity
• Low demand, growth and low load factor (main use
  during agriculture)

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Concern for economic efficiency viability

• Operation maintenance cost off grid/grid
  systems
• Tariff and capacity to pay
• Amount
• Schedule of payment
• Low productivity gains in agriculture (high ratio
  of labour to capital)

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Concern for environment safety and feasibility

• Local environment-technology fit
• Competition from alternate energy forms like wood
  etc.
• Feasibility of renewable energy systems
• On grid - power loss due to long transmission
  lines and low load factor
• Cost effective technologies and maintaining
  reliable supply

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Concern for effective management

• Socio-geographical characteristics
• Regulatory structure at the district level
• Government commitment and public institutions
• Decision making
• Supply and revenue collection
• Cost recovery and Possibility of expansion
• Responsibility Community capital or labour

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Some Issues

• Approach towards RE
• Integrated rural development (sectoral dev.)
• Area coverage/ intensification
• Maximizing benefit (welfare vs. income) and
  minimizing costs
• Nature of RE
• Isolated generators for few customers
• Local network for 1-2 villages
• Public- regional or national grid

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Possible Alternatives

• Taluka System
• Admin block of 90-100 villages, one small town
• Ave. population 2.5 lakhs, Area 1500 sq kms
• Need for electricity 10-20 MW 10 million lt
  of petroleum products
• Produces av. 400 million ton/yr of agriculture
  residue 53000 MW/yr

Ability to form a critical mass. A closed biomass
rainwater basin system.
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Possible Alternatives

• The System
• No of Talukas in India 3342
• Biomass based, Lease SEB TD lines
• Challenges
• Agriculture residue used for fodder,
  construction, small HH items and cottage
  industry
• Need for a regulatory system using existing
  government infrastructure
• Maintaining high quality and productivity of land
  for consistent output. ..need for efficient soil
  and water management system.

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Possible Alternatives

• Distributed Generation Local Management
• Government sponsored
• Administration by rural cooperatives/ panchayats
• Use local fuel for generation and SEB lines for
  supply
• Standby power from SEBs
• Scheme of 200-500 KW for 1-2 villages

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Possible Alternatives

• Corporate Social Responsibility
• Involving companies
• Involved in rural marketing, selling consumer
  goodsrole of private companies in involving
  rural India in value add products
• Pvt. Discoms.
• Aim intensify coverage
• Package of urban and associated rural area (which
  already has TD network)
• Setting up TD network responsibility of the
  government

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• THANK YOU