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Mohit Sharma (Trendster / Trendy Baba)

All rights reserved, Mohit Sharma

Executive Summary.Page 4 Preface Page 5 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Introduction Page 6 Rural India and energy Page 11 Barriers to Energy Access For Rural Masses Page 15 Government Initiative Page 18 Approach for meeting rural energy need Page 20 Renewable Energy Page 25 Solar Power - Bridge to Future. Page 27 Other Renewable Energy Page 31 Distributed Decentralized Generation Based Power Plan P. 35 Understanding Bihar.. Page 37 Concept of Distributed GenerationPage 59 Origin of StudyPage 60 Renewable Energy Technologies as DDGPage 62 NEW INNOVATION IN OFF GRID TECHNOLOGYPage 65 The BIOMASS GASIFIER TECHNOLOGYPage 69 BARRIERSPage 71 The BUSINESS MODEL FOR GAYA SYSTEMPage 75 Penetration of DDG..Page 81 Conclusion..Page 85 References..Page 86

The reach of power (energy) in India is limited and there are certain areas where to install a new renewable energy based plant is better than connecting it to the conventional power lines. People of many villages and remote areas have not availed the benefits of electricity which affects their standard of living. To increase the growth of power reach through small off-grid projects government initiated few plans, schemes encouraging private companies to enter in this sector. The Green Mantra (Environmental Carbon Solutions Pvt. Ltd.) is setting up renewable energy based power projects in Bihar, Orissa and North Eastern States. The project covered is a 750 kw hybrid power project of Biomass and Solar energy in a cluster of 19 villages located in Gaya district of Bihar. It also covers the common areas related to usage of renewable energy in Orissa and North East India.

Objective of Research As demand for energy is increasing around the world & in India so there is a positive growth trend is coming in the renewable energy sector also. There are many rural and remote areas which are energy deficient. So, private companies are encouraged by Government creating opportunities by various governmental schemes like Rajiv Gandhi Grameen Vidyutikaran Yojna, Distributed Decentralized Generation and support in finance, distribution, technology, land, etc. As every area has its dynamics and differs from others in terms of topography, density of population and energy needs, there is a need of study for specific features related to the target are (a cluster of 19 villages in Gaya, Bihar requiring about 750kw Plant) with the help of surveys, financial tools and earlier standards. Approach Indian solar and non solar market were focused. RECs are traded trough any CERC approved power exchanges. With increasing involvement of private players many schemes are yet to be fully exploited to avail the maximum profit from such Projects. Assumptions of various permutationscombinations on the basis of available data is also performed to make the results comparable. Comparison with alternatives like Small Hydro, Wind is also carried out. Primary and Secondary research method has used in the project.

Power is the PREFACE life blood of a developing economy. India is currently in a state of burgeoning economic development. But the power scenario in India still has a long way to go. The government policies are well in place to take care of the power requirements of the country at a macro level. However, the issue of Energy Access at the grass root level still remains a cause of major concern. The modern day power system is undergoing rapid and dynamic metamorphosis from the legacy system, in the direction of an intelligent power system. The use of renewable energy resources as distributed generation at the sub-transmission / distribution level is on the rise alongside advances in the efficiency of associated technologies and automation of the power sector. Renewable energy resources (RERs) such as wind and photovoltaic (PV) technologies that are time variant are planned for meeting variation of loads. PV and wind technologies are two technologies that have seen the most significant growth for use and distributed sources. The rural parts of the country still remain largely devoid of an efficient power infrastructure. Research and policy implementation at this level can strengthen the power position of the country at the ground level. Rural India is the backbone of Indias economy. Nearly 70% of Indias population lives in villages and agricultural is the main support for their livelihood. It is, therefore, ironical that Indias rural population shares a much larger burden of poverty as well as energy poverty. Eradicating energy poverty requires that adequate infrastructure is put in place so that power can reach the corners of the country. Moreover, this power must be clean enough to be environmentally acceptable, affordable by the people and also feasible to implement. Most of these criteria are satisfied by Renewable Energy. Also, renewable energy can be implemented in a distributed format which makes it more suitable for providing power to areas with difficult geographical accessibility. This report looks at the providing energy access to the rural part of the country through renewable energy especially through DDG Scheme. With vast diversity of our rural population in physical, social, cultural, educational, and economic background, the solution would need to be developed on case by case matching with the peculiarities of a particular region. Eradicating energy poverty requires that adequate infrastructure is put in place so that power can reach the corners of the country. Moreover, this power must be clean enough to be environmentally acceptable, affordable by the people and also feasible to implement. Most of these criteria are satisfied by Renewable Energy. Also, renewable energy can be implemented in a distributed format which makes it more suitable for providing power to areas 5

with difficult geographical accessibility. This report looks at the providing energy access to the rural part of the country through renewable energy. This report is a comprehensive effort, at macro level, to make an assessment of the current scenario of energy access to the rural population, what should be our objectives and targets to remove the rural energy poverty and how we can meet the challenges encountered and accomplish this stupendous but important task. In such effort, the report identifies the vital role renewable offer.

Energy is a basic necessity for human activity and economic and social development. Yet global strategies for how to meet this basic need for the world's rapidly growing population are sorely lacking. Lack of energy services is directly correlated with key elements of poverty, including low education levels, restriction of opportunity to subsistence activity, and conflict. Rural electrification is the process of bringing electrical power to rural and remote areas. Electricity is used not only for lighting and household purposes, but it also allows for mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage. In areas facing labor shortages, this allows for greater productivity at reduced cost. One famous program was the New Deal's Rural Electrification Administration in the United States, which pioneered many of the schemes still practiced in other countries. According to IEA (2009) worldwide 1.456 billion people do not have access to electricity, of which 83% live in rural areas. In Sub-Saharan Africa less than 10% of the rural population has access to electricity. Worldwide rural electrification progresses only slowly.
In impoverished and undeveloped areas, small amounts of electricity can free large amounts of human time and labor. In the poorest areas, people carry water and fuel by hand, their food storage may be limited, and their activity is limited to daylight hours. Adding electric-powered wells for clean water can prevent many water-borne diseases, e.g. dysentery, by reducing or eliminating direct contact between people (hands) and the water supply. Refrigerators increase the length of time that food can be stored, potentially reducing hunger, while evening lighting can lengthen a community's daylight hours allowing more time for productivity.

Indian Context, over 400 million Indians have no access to electricity. 6

The problem is not one of distribution, but of provision. Many people attempt to steal electric power. The electric company then responds with punitive "tampering tariffs" that require charge legitimate users for electricity that fraudulent connections and meters might have stolen. These very high tariffs are resisted by all but the wealthiest users. The result is that the underfunded electric power company reduces service to the amount of electricity it can afford to produce. The electric companies therefore also prefer to serve large institutional customers that pay their bills. Developments on cheap solar technology is considered a potential alternative that allows an electricity infrastructure consisting of a network of local-grid clusters with distributed electricity generation. That could allow bypassing, or at least relieving the need of installing expensive, and lossy, long-distance centralised power delivery systems and yet bring cheap electricity to the masses. India's government has proposed legislation to compel village leaders to operate local generators run from biomass (see links). Locally-controlled generation is preferable to distant generation because the fuel, billing and controls for the generator will then be controlled by the villagers themselves, and they are thought more likely to come to an equitable arrangement among themselves. Distributed generation throughout the power system, real time voltage and angle measurements together with integrated two-way communication are all recently introduced components of the power system. These serve to greatly improve power systems reliability and performance. These advancements are being implemented at the transmission, sub-transmission and distribution levels of the electric power system, with the objective of increasing the stability, invulnerability, reliability and adequacy in meeting the increasing power demands.

The move toward sustainable and renewable energy technologies is evident due to the various policies favoring the Renwable Energy Sector such as JNNSM, RPO(Renwable Purchase Obligation). The use of renewable energy resources as distributed generators (DGs) at the subtransmission / distribution level is on the increase alongside advances in the efficiency of associated technologies. These technologies provide sustainable and environmental feasible alternatives for energy production that have the additional advantage of reducing the dependability of the grid on imported fossil fuels and large central generation Photovoltaic, wind technology, biomass are amongst these technologies.

There are measurable impacts of the penetration of these renewable energy resources (RERs) on the electric grid; they impact the power quality, reliability, stability and safety of the electric power supply. In the present day distribution system, there is an increased instance of DG penetration into the network, with measureable impacts on the system. PV and wind technologies are two technologies that have seen the most significant growth for use and distributed sources as shown in Figures.


1. Energy Access & Energy Poverty

Access to energy services is a key component of alleviating poverty and an indispensable element of sustainable human development. Without access to modern, commercial energy, poor countries can be trapped in a vicious circle of poverty, social instability and underdevelopment. During the past twenty-five years, electricity supplies have been extended to 1.3 billion people living in developing countries. Yet despite these advances, roughly 1.6 billion people, which is one quarter of the global population, still have no access to electricity and some 2.4 billion people rely on traditional biomass, including wood, agricultural residues and dung, for cooking and heating. More than 99 percent of people without electricity live in developing regions, and four out of five live in rural areas of South Asia and sub-Saharan Africa.

Despite advances in areas such as rural electrification, the number of people lacking access to energy services has remained relatively constant due to increases in population. The total number of people without electricity has fallen by fewer than 500 million since 1990. Without modern energy services, millions of women and children face debilitating illness or premature death; basic social goods like health care and education are more costly in both real and human terms, and economic development is harder to perpetuate. The services that energy enables, such as electricity, can create conditions for improved living standards, especially in areas of public health, education, and family life.

Electricity allows tasks previously performed by hand or animal power to be done much more quickly with electric powered machines. Electric lighting allows individuals to extend the length of time spent on production and hence on income producing activities. It also allows children time to read or do homework and access to television and film, which opens rural residents to new information that can instill the idea of change and the potential for self -improvement. Modern liquid fuels permit modern modes of transportation that cut the cost, both monetary and in time, of travel to nearby towns where, again, individuals are exposed to different ways of doing things and different views. Faster and cheaper transportation can increase the reliability of supply of modern fuels, reducing the need to maintain supplies of firewood as a back up and facilitating movements up the energy ladder. India has experienced rapid economic growth over the past decade, with an expanding middle class larger than the population of the United States. In 2000, the population grew at a rate of over 6 per cent, which required a rate of 9 per cent of energy growth . In the past 20 years alone, urbanization has driven a 208% growth in Indias energy consumption. Under these conditions, it is imperative that India meets its growing energy necessities in a self-reliant, sustainable manner. However, providing 1 billion plus people with a constant energy supply is very difficult, especially for a developing country facing rising gas prices. More than 18,000 villages live without electricity in India; according to the International Energy Agency, 404.5 million people do not have access to energy. Many who do receive electricity face constant blackouts and uncertainties of a steady energy supply from their utility company? Erratic voltage levels and an unreliable power supply are major problems, due to the inadequate 10

energy supply and ageing transmission leading to power cuts . Rural areas face serious problems with the reliability of power supply. Indias climatic conditions make it a very suitable place to rely on renewable energy (RE); with very high solar irradiationnsolation levels and 45,000 megavolts megawatts (MWV) of possible wind capacity, RE business growth has much potential. The Indian economy also depends heavily on agricultural production, and the livelihood for a majority of the population is farming. Installing RE for rural agricultural purposes is necessary to make a significant impact. Photovoltaic and wind technologies have over the past years revealed an almost 45% increase in the generation capacity of solar PV technology. This is reflective of a global growth in the utilization of those technologies. As the utilization of these resources constantly increases, the use of conventional tools for the analysis of the power system, even with significant RERs penetration persists. For such studies, assumptions / simplifications are made with regards to the modeling of the RERs technologies. Advancing the models of these resources for power system studies has been of recent interest with several works being conducted in this area for the various technologies.


Energy Poverty Is Universal

As per one estimate, globally, 1.6 billion people (1/3 humanity) have no access to electricity; 80% of energy poverty is in rural areas of developing world. Worldwide, more than 3 billion people depend on dirty, harmful solid fuels to meet their basic energy needs like cooking. Some 2.4 billion people rely on traditional biomass i.e. wood, agricultural residues and dung cake for cooking and heating. The Indian situation is no better.

With its large rural population of (70% of the total population) living in villages and being poor, India is one of the worst affected developing countries suffering from energy poverty. As per the data of 2004 (which might have only changed marginally as a result of various initiatives taken by the Govt.), 26% villages (56.5% households)3 had no access to electricity; An ambitious scheme launched in 2004, Rajiv Gandhi Grameen Vidyuteekaran Yojana (RGGVY) targets to achieve 100% village electrification by 2012 (originally by 2010).
Energy Poverty impacts in several ways


Social Dimension: Energy poverty is the main reason for rural poverty which in turn, give rise to health issues, Up to 95% of rural energy needs are being met by inefficient burning of fuelwood, dung cake and plant wastes and is used for meeting the basic needs of cooking, heating and lighting, there being nothing left for productive use. These result in high pollution levels in low income dwellings with consequent health issues propping up.

Economic Dimension: Lack of affordable and reliable energy restricts the income levels and industrial/commercial activity leading to economic stagnation or slow growth.

Environmental Dimension: In the absence of affordable modern energy, there is no alternative to the manner of use of energy natural sources, which results in huge pressure on the environment in general.

Years ago, development experts thought industrialized countries should harness and drive research, while developing countries focus on raising basic education and literary skills. India is unique, in that it created world-class educational institutions (e.g. Indian Institute for Technology - IIT) during a time when most of the country was impoverished. The investments made in the scientific research capacity from IIT schools have led to a new generation of information technology engineers that have orchestrated Indias IT boom. Now these same research institutions are discovering technology that creates renewable and efficient energy. Ever since the liberalization of Indias market, the government in the nineties formulated a great number of policies to promote RE, including technology transfer. It is imperative for the GoI to balance the amount of R&D on the national level and imported technology. Not only would India be proving to the world that a developing country can utilize renewable energy options, but developed countries would no longer be able to make the argument that international carbon reduction treaties should not be pursued because of the lack of restrictions on developing countries.India is proving its leadership and takes up the task of providing its citizens with steady, reliable and clean energy, but more can still be done.

However, the reduction of RE prices and mass production should not be done to the detriment of quality. Indian industry, which has cultivated an image of quality in other sectors, would be well 12

advised to apply the same standards to RE technologies. Several local producers have been recently criticized and some experts have expressed doubts on the quality of the new installations following the implementation of Indian Solar Plan. In this framework, local authorities have a role to play in imposing internationally agreed standards in their own markets as well for exports. This will have a mid-long term important influence on the local markets (systems working as planned over 20-25 years), as well as on the image of the technology and the industry.

The recent major cost decreases of RE is opening up market niches; utilizing the full potential of these niches must be realized. Currently, the RE market in India is over US$2.2 billion, and is growing at 15 per cent every year. Non-governmental Organizations should be also utilized during RE project implementation and public-private partnerships between governments and the private sector can link policy changes with private financing to promote RE. International lending organizations, such as the World Bank and the ADB assistance are still greatly needed for RE implementation, particularly for off-grid. The Banks can help create the right environment for the private sector to invest in RE technology, implementation, and maintenance.

India is an agricultural nation, yet the farmers and the rural poor remain the underserved. Klaus Toepfer, the former Executive Director of the United Nations Environment Program, has once said, These countries need greatly expanded energy services to help in the fight against poverty and to power sustainable development. The benefits of RE in rural Indian communities are tremendous; RE not only expands energy generation and greenhouse gas mitigation, but also contributes to improvements in local environment, drought control, energy conservation, employment generation, health and hygiene, social welfare, security of drinking water, and increased agricultural yield . Implementing wind farms and solar power in villages brings development in the form of infrastructure, efficient agriculture, and an overall better quality of life for the rural people. Thus, the broader developmental goals, such as poverty alleviation, sustainable development and employment generation should be integrated into the RE programs while seeking direct support under bilateral and multilateral cooperation. The GoI, NGOs, the international community, private businesses, and the villagers themselves all have a significant part to play in creating this better life, and must work together in order to do so. 13

Complexity of Energy needs of rural India

The energy needs of rural India, as seen in totality, are much more complex and are unlikely to be fully or substantially addressed by 100% village electrification.

Such complexity is the result of large population, majority being poor with no capacity to pay for the cost of energy and the only energy in use i.e. fuel wood for cooking being availed without any financial cost personal human labor, the grid extension to the villages, even if materializes, would be of limited help as there is large gap between supply and demand, quality and timing of supply to the rural areas, high T&D losses and large component of hidden cost involved in such supply, which would justify use of local energy resources than to rely on grid power for the rural population. About 75% of Energy in Rural India required only for Cooking and Lighting, largely met by locally available bio mass and kerosene, supplemented by electricity from grid. 75% use biomass (firewood), 10% use dung-cake and only 5% use LPG for cooking 50% use kerosene and 48% grid electricity for lighting. Agriculture is second largest rural energy demand , Electricity and Diesel are the main sources Human and Animal Energy is major source for domestic, agriculture and several other requirements. Women and Energy have strong relationship in rural India. Drudgery of women and children, Health Issues due to inefficient use of biomass and lack of ventilation
The Rural Poor

The Economic Poverty and Energy Poverty seem to be going hand in hand. It is difficult to make a conclusive determination which one drives the other. Let us take a look at the typical characteristics of the rural poor household. These are: The family consists of more than 5 members. It has no or limited land or livestock as its assets. It has limited or no other assets or equipment, it may be living in a self built Kachcha (temporary) house. It has no access to electricity, either no grid connectivity or not being able to afford the cost thereof. 14

It depends on water from, hand pump, pond or well, irrespective of whether the water is fully potable or needs some treatment for making it fit for drinking. It depends on rudimentary cooking processes and equipment, typically the three stone chulha (cook stove). The family survives on a single or two persons working as daily Wage Labor. It is substantially dependent on natural resources and hence is sensitive to earning shocks. It may be spending up to 70% of the budget on food expenditure, mainly rice and other staples, unlikely to provide the minimum essential nutrients. The energy needs are predominantly met by women folk (who may at times be assisted by young children) for fetching wood, biomass or dung and making dung cake for cooking and other needs. Thus, Women and Energy have strong relationship in rural India in arranging and using energy. Drudgery of women and children can be well imagined who need to collect biomass on their heads almost on daily basis to be able to cook their daily food. Thus, there is no time or energy left with them for to pursue income generating activity or education.


The barriers or constraints to Energy Access to Rural Masses have their origins in economic, social, technological and financial limitations coupled with inadequate focus by the planners, Governments and national and international development organizations on the issues involved. Some of the major barriers to Energy Access for Rural Masses are:

Geographically dispersed villages Inadequate focus on local resources Inadequate financing structures Inadequate Interest of private sector Unsustainable initiatives Need for better monitoring Ineffective targeting of subsidies Affordability of Energy cost Remote locations Availability of ready to use technology. 15

Energy crops competing with food crops Funding Gap Ability to pay Sustainability of Renewable Subsidies

The recent increase in the integration of renewable energy technologies into the electric power system, has led to the development of a methodology for the optimal use of these resources within the Power System that takes into consideration the variability of these resources. Though there is presently, integration at the transmission, sub-transmission and distribution level of the system, the use of distributed generators at the customer /load-end of the distribution system is of particular concern. The engineering problem is the development of a comprehensive scheme for the optimal utilization of RERs technologies at the distribution level with consideration as to the impact of these technologies on the reliability of the system. This work involves the development of suitable models that account for the variability of the sources and consideration of the variability of the loads at the distribution level. The underlying benefits of this research are linked to the utilization of renewable energy technologies as distributed generation. This provides the benefit of providing additional generation without the large investment that would be associated with central generation expansion; is accompanied by the relatively low efficiency, and cost of investment with regards to the installation of these sustainable energy technologies and their associated electronic and storage components. To ensure that the resources are use optimally within the confines of the application, it is important that the implications of these resources are comprehensively studied with consideration of their limitations such as variability. Within this work the major solutions to be developed are:

i. The selection and implementation of a suitable yet simplistic model for the renewable energy technologies (PV and Wind) to be integrated for power system studies. ii. The development of an optimization scheme for the optimal switching of the resources within the distribution system. iii. The development of a further enhancement scheme that assess the impact of these resources on the distribution system. 16

Conventional placement of DGs has been studied as an optimization problem based on varied objectives that include loss optimization, cost minimization, economic and operational limits of the DGs. For the varied objectives, there have also been implemented a host of methodologies from classical optimization formulations to evolutionary programming computational analysis. Upon review of existing schemes developed that address the issue of the optimal placement of conventional DGs with a network, this thesis aims to address the gaps that exists in involving the variability issues that associated with the sustainable energy sources, PV and Wind. Another critical issue in the utilization of renewable energy resources within the electric power system is the various operation modes that exist; these technologies can be used for stand- alone as well as grid connected applications. There is thus need for the extension of the studies to the various grid connected operation modes for the distribution system. Figure 1 demonstrates the inter-relation of the major components of the study conducted within the report.




The Govt. of India as well as the State Governments has taken several initiatives to meet the energy needs of the rural population. Some of these initiatives are discussed below.

This is a major national effort to universalize access to electricity 57% of rural households were without access in 2001. The program me launched in 2005 targets and achievements: 100,000 un-electrified villages. 78 million rural households in un-electrified and electrified villages. Provides 90% capital subsidy.100% capital subsidy for electrification of Below-Poverty-Line (BPL) rural households. 44,000 villages electrified. Another 22,000 villages covered under intensive electrification. About 2 million connections given. USD 1.5 billion invested. Another USD 6.75 billion provided. National program me for Franchisee development launched. Franchisees in place in 14 states, covering 63,000 + villages. Generated employment for villagers and improved consumer services. Resulted in significant improvement in revenue collection - in some cases more than 100%. The programme has been in operation ever since its launch in 2005 and has helped in a major way in rural electrification of India. The program has achieved electrification of about 83% unelectrified villages by December 2009. Notwithstanding the progress in village electrification through extension of the grid, the availability of modern energy for the rural poor masses is still perceived to be a distant dream due to inadequate electricity generation and issues of affordability for the rural poor.


Integrated Rural Energy programme (IREP)

IREP aims at promotion of an optimum mix of both conventional and non-conventional energy sources in selected blocks in the country. Central Sector Component - Provides grants for support staff in the IREP project cells at the State and Block levels, training of the staff and extension work. State Sector Outlays - Utilized for the implementation of IREP Block Energy Plans. IREP is no longer in effect. The program is learnt to have been of limited success primarily due to the State not having been able to allocate necessary financial resources for the scheme.

National Biogas & Manure Management Programme

The National Biogas and Manure Management Programme (NBMMP) aims at promotion of indigenously developed simple-to-construct and easy-to operate family type biogas plants. Cumulative Installations to over 41.2 lakhs biogas plants for providing clean cooking /lighting fuel to over 4 million rural houses has been achieved by March 2009.
Solar Thermal Applications in Rural Areas

Solar thermal demonstration programme to promote different types of solar cookers, special demonstration and pilot projects of solar dryers and solar stills, and demonstration scheme for North-East, Islands, Jammu & Kashmir and Sikkim for solar water heating systems has been implemented The programme also provides financial support to the manufacturers of solar cookers for obtaining BIS approval. Under the programme, central financial assistance at the rate of Rs.1, 500 per dish cooker and Rs.15, 000 for community solar cookers is provided. For box type solar cookers, an incentive of Rs.200 for ISI mark and Rs.100 for other solar cookers is provided to the promoter. As of March 2009, Cumulative Installations for demonstration solar thermal power plants is 6.57 lakh units.
Remote Village Electrification

The Remote village electrification (RVE Program) initiative during 10th plan aimed at providing basic lighting / electricity facilities to renewable energy sources in remote villages and hamlets which are not electrified and where grid connectivity is either not feasible or not cost effective. The 19

total number of such villages and hamlets so far electrified is 2,300. Nearly, 4 lakh households in 4,237 remote villages and 1142 remote hamlets have so far been provided with solar home lighting systems.

Biomass based distributed power generation program

Biomass power projects with an aggregate capacity of 703 MW through 102 projects have been installed. Fuels used in such projects are rice husk, flora and agricultural residues. The Indian biomass power projects are characterized by a number of innovative features such as use of diverse range of biomass materials in the same boilers and use of air-cooled condensers, etc. The promotion of biomass-based power generation in the country is encouraged through conducive policy at the State and Central levels. The MNRE provides the capital subsidy for biomass and bagasse cogeneration projects. Fiscal incentives such as accelerated depreciation, concessional import duty, excise duty exemption, tax holiday for 10 years etc. were continued during the year.
Village Energy Security Program

The Village Energy Security Test Projects (VESP) aim at meeting the total energy requirements, such as cooking, lighting and motive power of villages, with full participation of the local communities, including women. The projects are environment-friendly and create avenues for local employment and improve the quality of life. The activities envisaged under these projects are: Preparation of a Village Energy Plan, including assessment of resources, energy services required and configuration of energy production systems; formation of a village energy committee; creation of a village energy fund; plantations and installation of energy production systems; operation & maintenance; and capacity building including training.


With several variables playing a major role, it would be an easy task to develop a fool-proof model which would cater to all possible situations, but it would certainly help to establish the desirability and effectiveness of most of the initiatives taken so far as also those that may come for consideration in future.


Some of the factors in such critical appraisal of the initiatives for meeting rural energy needs would involve aspects of: Moving to the next stage from pilot/demonstration projects Contribution in meeting the extent of rural energy needs Use ABC classification based on magnitude of potential of each initiative to meet the rural energy needs Prepare a detailed plan for selected initiatives to achieve specific time bound targets for meeting the extent of rural energy needs, complete in terms of resource mobilization (financial, human resource etc.), organizational, monitoring etc.
The Ultimate Goal

The Ultimate goal of all policies and research is simple - to meet 100% of energy needs of rural India: in the shortest possible time at an affordable cost; and in environmentally sustainable manner

The above is an ambitious statement and should also keep in view considerations such as:

Targets for rural energy poverty alleviation in short, medium and long term Identification of appropriate sources of energy Identification of appropriate technologies Where to find the resources financial, technological and organizational

The utilization of distributed generation at the distribution level of the power system is a vastly increasing practice in the present and future electric grid. The utilization of renewable energy technologies as distributed generation sources, due to their suitability for remote applications, cost effectiveness and environmental impact, has resulted in the need for the advancement of currently available power system analysis tools to include models of these technologies that include consideration of the variability / intermittency of these sources. Over the years, there have been drives towards the development of components for the realization of new planning and operational tools that are geared to the study, monitoring and


operation of the new renewable energy resources (RERs)-integrated grid. The major categories of this work are: i. Development distribution system modeling and analysis.

ii. Probabilistic modeling techniques for variable meteorological factors such as solar insolation and wind speed. iii. Modeling techniques for renewable energy resources technologies such as photovoltaic modules and wind turbines. iv. Development of optimization schemes for the sizing and placement of classical and conventional distributed generators (DGs). v. Further enhancement techniques that include power quality assessments, reliability assessment and cost-benefit analysis for the quantification of the impact of distributed energy resources (DERs) on the system under study.

The usual practice for increase in demand is to increase investments in both the generation and transmission network of the supply system. However the same power balance and improvement of power quality can be achieved by the used of Distributed Energy Resources. Distributed Generation allow for improved performance of network without comparatively large investments in generating resources and in transmission and distribution system. The utilization of DGs throughout distribution networks has been seen to reduce the power generation central power units and the number of utilized online generators. Distributed Generation (DG) technologies offer technical, economic and environmental advantages. Economically, these implementations reduce expansion costs while remaining more geographically independent that central generation. Utilities are able to delay infrastructure investments and diversify energy sources. Operational options are available for grid inter-tie or stand-alone applications at the distribution level with numerous positive technical implications that include: improved performance of network without comparatively large investments in generating resources, improvement of the stability, power quality, reliability and security of electric power system. DGs may also reduce power losses of the system, and contribute to peak load shaving. The utilization of renewable / sustainable energy technologies as DGs provides a more environmentally sensitive approach. Cleaner, more efficient sources result in lower emissions and environmental impact. However, the utilization of distributed generators increases the uncertainty of power system stability in disturbance events.


Distribution System The classical power system is sub-divided into three (3) major sections: generation, transmission and distribution system. However, the inter-relation between the transmission and distribution systems can be sub-divided into several subsections as identified in Figure 2. The distribution level of the power system feeds from the sub-transmission and features the branched loads of the system.

Figure 2 STRUCTURE OF THE POWER SYSTEM NETWORK There are various distribution system topologies that typically include radial and mesh topologies. Due to the nature of the existing distribution system, the inclusion of distributed generation has been look at as an advantageous. Distribution networks are generally configured radially for effective and non-complicated protection schemes. There are four distribution system configurations: (i) radial, (ii) loop, (iii) network and (iv) primary selective . These vary in terms of the configuration, the types and number of components, the reliability and the resilience of the system. Of these radial and loop have been the two most exhaustively studied. These topologies have featured in DG placement and reconfiguration studies. Key components for distribution systems include generators, power transformers, lines, shunt capacitors, switches and various loads. In the present day distribution system, distributed resources (DRs) including distribution generators (DGs) and electrical storage technologies are increasingly prominent. 23

These components impact on the function and nature of the distribution system. As an example, the conventional unidirectional flow of energy in the distribution system is now no longer standard. Previous work conducted has indicated the need for special considerations of these technologies in the analysis of the distribution level system.
Major Considerations

Some of the major considerations in defining the Vision for meeting rural energy needs of India as also the underlying objectives would be addressed through answerers to the questions like:

How do we strengthen our rural economic competitivess and ensure creation of good rural jobs? How do we make our rural population self reliant and empowered? How do we reduce the arduous human labor so prevalent in our rural population, more particularly for the women and the children? How do we protect are natural environment?

Limitations of Present Initiatives

There seems to be near total reliance to meet the rural energy needs though 100% electrification of the villages though extension of the grid supported by distributed generation in a limited way using renewable sources of energy. This is unlikely to achieve the desired results and provide satisfactory responses to all the questions mentioned above. Some of the limitations are: Target to achieve 100% Village Electrification, which was originally to be completed by 2010, may not be completed even by 2012. Huge costs involved for expansion of grid to all the far flung rural areas Against tariff of Rs 3/- (approx.), actual of supply Rs 9/- per kWh As distance from grid increases cost of expansion of grid increases by about Rs 1 per km per kWh.(figures to be checked?_ Poor revenue collection: Rs0-10 p.m. (poor) and Rs. 0-130 p.m. (others) Sustained thru redistributive policies, tariff cross-subsidies, and financial relief to loss making utilities. Rural supply low priority, first in power cut. Rural electrification more in deficit states and less in surplus ones 13 hours of rural supply considered adequate for irrigation pumps 24 Rural equated to agricultural; casualty education (schools and children)
Relevance of Renewable

To bridge the gaps, renewable can play a very important role, including: Potential to create large no. (Net) of jobs especially in rural sector Revenue Neutral or even better (savings v/s cash investment) Benefit to sectors like Construction, Professional Services, Farming, Trucking and Transport, Metal Fabrication etc.

Reliance entirely on Renewable Energy sources would not be practical in the short and medium term, despite claims of falling costs, and the rural households would need to be provided with an adequate share of relatively lower cost energy from conventional sources.

A comprehensive integrated rural energy development program combining both conventional and nonconventional energy sources, optimized for blocks of rural population, to be evolved. Nonetheless, the long term planning must hover around meeting most of the energy needs of rural India from Renewable Sources of energy. The grid extended to villages could perhaps at some time in future, be used to plough back the energy generated from such renewable sources to the grid rather than from the grid.

In the context of other forms of energy service and use to augment the grid extension, especially for the rural population, Renewable Energy is poised to play a major role. Unlike in the past when these resources were perceived to too expensive to be of any practical use, several forms of renewable energy are fast coming into the viability zone, especially when adverse effects of fossils are taken into account on human health and ecology.
Vast Potential

The Renewable have huge potential to meet the entire energy requirement of the world as evident from the following: As per some studies, less than 1% of earths deserts can meet the worlds energy demand using CSP technology and covering 4% of the worlds deserts with photo voltaic cells could supply the entire worlds energy. 25

Wind energy can also theoretically meet 15 times the worlds energy requirement.

Global Outlook

Global Investments in renewable power generation rose from $ 28 billion in 2004 to $ 71 billion in 2006 3\(New Energy Finance). The global renewable energy market is doubling every three years. Public Investments in R&D, subsidy schemes that favor renewable, and the probability of a future global carbon market, are all for fuelling the clean tech boom. While driven by supportive public financing and regulation, the challenge of mitigating energy poverty can offer significant commercial opportunities for investors in the area of renewable

Major Renewable Energy Resources

The major renewable energy sources in commercial use include: Solar Wind Biomass Small Hydro
Initiatives in India

India is fast emerging as the Worlds clean energy hot spot. The total demand of electrical energy in India is projected to be shooting up to 240, 000 MW by 2012 and the Govt. has rightly recognized the need to supplement a significant portion of additional generation from renewable energy resources. As much as 18% of additional generation capacity commissioned during first three years of the Tenth plan came from renewable. It is estimated that by 20, 000 MW will be contributed by renewables. A major part of investment in renewable energy sector has come from private sector which is very encouraging for the future of this sector. In the 11th Five Year Plan (2008-2012), Indias renewable energy market is expected to reach an estimated US $ 19 billion with an investment of US $ 15 billion to add 15000 MW of additional renewable capacity. The Govt. of India has planned a subsidy support system of approximately US $ 1 billion in Govt. funds.

India has realized the major role that Renewable Energy can play in meeting the challenges of energy security and climate change though:. Proactive role of State Govts. Emerging IT solutions for emission reduction Innovative Microfinance Schemes 26

Clean Transport Carbon Markets Corporate Interest in Rural Renewable India presently generates 13,878 MW (as in Aug 2009) of grid interactive power from renewable sources including wind, solar, small hydro, biomass and bio-gas cogeneration, which accounts for 9% of total installed generation capacity. The 11th five year plan targets 14,000 MW of grid interactive and distributed renewable power by 2012, which means 10% contribution of renewable in power generation capacity by 2012.

If Renewable Energy has to contribute effectively in our medium term and long term energy mix, leapfrogging of initiatives needed taking clue from international trends as well as the successful pilot and demonstration projects in the country. Nature has been magnanimous in provision of RE resources like solar, wind, biomass and small hydro to India. The challenge for India is to mainstream renewable based power generation.


Irrespective of the international debate of climate change and negotiations amongst nations on price on carbon and commitment to the extent of carbon reduction, for an energy safe future which also takes care of the health concerns of the population, it is inevitable to focus on policies that will accelerate deployment of clean technologies like solar that make a real difference in fighting climate change, As per an estimate, solar and other renewable energy resources can, with the right policies in place, can play an increasing significant role in meeting the electricity needs of that country, which shows solar energy replacing a large part of coal based energy generation by 2020. The situation of energy needs and availability of clean energy resources offer similar possibilities for India.

While national and international politics will continue to play its role in shaping policies towards solar energy, educating the public and the media is vital. The solar industry needs to address this as a challenge rather than creating more business and more profit and these efforts need to be supplemented by NGOs and other institutions/organizations concerned with the ill-effects of climate change on one side and meeting the energy needs of the rural masses on the other.

Salient features of Solar Energy: The cleanest


Most abundant Inexhaustible Most predictable of all renewable energy sources


Against total equivalent energy consumption of 21.8 TW by 2030, total solar radiation intercepted on earth 173, 000 TW of which 120, 000 TW reaches earths surface i.e. solar energy potential is about 8000 times (800000%) of total global energy requirement in 2030. It offers viable solution for rural energy needs (at least in part).
Solar Energy Technologies

Solar Photo Voltaic: This technology is based on conversion of light energy from solar radiations falling on a photo voltaic cell directly into electric energy, which can either be stored in storage batteries and used as required or can directly be used as electricity for any purpose like lighting, heating, running a motor or other appliances or for any chemical processes. The photo voltaic cell uses the property of some semi conductor materials to convert light energy into electrical energy. The advantages of Solar PV are: It can generate power through Centralized Systems Grid connected or Stand Alone. It can produce power through Decentralized Distributed Generation (DDG) Distributed Generation, for Street Lights, Lanterns etc Direct solar radiation can produce some electricity under less than ideal condition, low sun angles and overcast sky. Offers modularity and scalability, large units more prone to clouds Clouds may cause spikes, up to 20 MW manageable
Solar Thermal

Sun light can be used by its conversion into heat energy though Passive System- through building systems Active System: CSP

Ministry of New and Renewable Energy (MNRE) has initiated a major project on Solar Radiation Resource Assessment (SRRA) station across the nation to assess and quantify the solar radiation availability along with weather parameters with a view to develop Solar Atlas. Centre for Wind Energy 28 Technology (C-WET), Chennai is implementing the project by installing a network of 51 Solar Radiation Resource Assessment (SRRA) station in the first phase in different States using high quality, high

resolution equipment/instruments.

Sl. No 1 2 3 4 5 6 7 8 9 10 11

States Rajasthan Gujarat Tamilnadu Andhra Pradesh Karnataka Maharashtra Madhya Pradesh Jammu & kashmir Chhattisgarh Pondichery Haryana Total

No.of SRRA station Proposed Completed 12 12 11 11 7 7 6 6 5 5 3 3 3 3 1 1 1 1 1 1 1 1 51 51

Each SRRA station consists of two towers of 1.5 m and 6 m tall each. The 1.5 m tall tower houses a Solar Tracker equipped with Pyranometer, Pyranometer with Shaded Ring and Pyrheliometer to measure solar parameters, such as, global, diffused and direct radiation. The 6 m tall tower houses instruments measuring rainfall, ambient temperature, atmospheric pressure, relative humidity, wind speed and direction. Each SRRA station is totally powered by 160 Watt SPV Panels and consists of 13 equipments/instruments and records 37 parameters inclusive of both measured and derived. The data from each SRRA station averaged to 10 minutes will be transmitted to a Central Receiving Station established at C-WET, Chennai through GPRS mode. The implementation of the project has started from February 2011 and all stations have already been installed, completed and commissioned.

Concentrated Solar Power (CSP)-

It is also termed as Concentrated Solar Thermal Power (CST), Solar Thermal Electricity Generation (STEG). The technology uses heat from the sun to generate electricity in much the same way the conventional thermal power station. The suns rays are focused on a central receiver containing a mineral oil or other thermal carrier. As this liquid gets heated up (reaching temperatures as high as 400C-600 C ), it passes though a heat exchanger and generates steam, which is then used to drive a steam turbine. With the present state of technology development and costs involved, the areas having solar insulation levels of 2000-2500 kWh.m-2 are better suited for the technology. 29

As in any thermal power plant, water is required for raising steam using solar heat. Since the high levels of solar insulation are predominantly in arid areas, this is matter of concern. However, water consumption can be reduced by as much as 90% using dry cooling, which however would result in higher price by about 10%. Water is also required for washing of parabolic mirrors for maximum performance, but the amount of water required is less than that required for steam.
Integrated Solar Combined Cycle (ISCC)

Another possibility CSP offers is in its integration with Gas based Combined Cycle Power Plants (typically known as Integrated Solar Combined Cycle (ISCC) Power Plants. Conceptually the disadvantage of solar based energy generation being not available when sun is not available is taken care by ensuring generation though natural gas, the available solar heat during day time can be utilized for augmenting power generation in steam cycle with scaled up stem generators and Steam, Turbines would help in achieving lower cost of generation from high cost natural gas.
Storage the USP of CSP technology

The concept seeks to address the biggest limitation of solar power- its non-availability when there is no sun. The heat collected during day can be fed into storage tanks using a medium like molten salt to hold the heat. When needed, that heat can be released to generate steam to run the turbines. Generation from Solar Plant with storage can be shifted to match the utility system load profile. It allows solar to provide power when it is needed most. As a result Storage CSP Plants are able to achieve higher annual efficiencies up to +50%. Such peaking power has a high commercial value. Adding storage and extra collector field to serve it pays off when there is good feed-in tariff or good peaking power price.
Other Salient features

The concept of CSP technology is based on creation of high temperature, which generates steam or hot gases for STG or GTG. Best suited where high direct solar radiation Flexible- storage, backing by other fuel use Suitable for peaking energy or for extended hours of generation. Generally, each installation tailor-made Some options are: ISCC, Direct Steam, Lineal Fesnal Reflectors for lower cost, Molten Salt for storage (freezing a challenge). Capability to produce lowest cost, commercial scale bulk electricity Capability to dispatch as needed. 30
Capital cost

Though initiatives for solar power generation were taken back in 1980s in USA, the use of solar energy has not for become commercially popular due to several constraints. The biggest of such constraints has been the capital investment involved in such projects. Though it is difficult to pin pointedly mention these costs but till about a year back these were perceived to be as high as Rs. 15 to 20 cr. Per MW of installed capacity.

In the recent past, say last one year, with the technological advancements and increasing population of solar power installation, the perceived costs have substantially come down. So much so that for some of the CSP projects in USA, taking into account the state tax credit provision, the expected tariff by 2012 would match with the peak load tariff of grid power.


Biomass Energy Biomass is a major source of energy especially in rural areas. However, it is being used in an inefficient and un healthy manner with the consequent adverse impacts of depleting forest reserves and human health with all its consequences on the socio-economic status of the rural population. Biomass includes fuels like wood, agro-waste, Bagasse, rice husk, animal ding etc.

Advantages of Biomass Energy There is an immediate and immense need for better use of biomass. Good biomass for energy could: diversify energy supply at reasonable cost, improve trade balances, provide rural income and employment, reduce GHG emissions from fossil fuels. Use of biomass for energy would be bad if; GHG emission reduction is not achieved. Biodiversity loss though Land Use change is not controlled/monitored through suitable safeguards. Suitable Safeguards not used for tackling food insecurity, overuse of water and mismanagement of soils. Global Potential for Better Use of Biomass for Energy estimated at 25 to 30% of Global Energy Supply by 2050.Use of biomass for energy is associated with direct and indirect Land Use Change emission. The impact needs to be monitored and controlled. Indirect Land Use Change emission can be controlled by Using residues and wastes Promoting more efficient energy conversion Using land set-free from higher yield crops 31

Using abandoned or degraded land not in competition with food, feed or fibre production multiyear crops Multiple cropping schemes (agro forestry) Land based algae More efficient conversion: CHP Next generation bio fuels Integrated bio-refineries With Carbon Capture Sequestration (CCS), sustainable bio-energy could, in long term, achieve reduction in atmospheric CO2 levels Major Mile stones in better use of bio energy would be In the first phase mainly being used for electricity and heat, less for transport. CCS will push (2050) shifting biomass use to road, ship and aviation fuels. Biomass for energy cultivation of potential crops on low carbon land could help sequestion of atmospheric carbon in soil and could reduce deforestation process thorough economic development alternatives and access to modern energy. Use of good biomass will also help in: GHG emission reduction Maintenance of biodiversity Energy Security Low Social Trade Off

Biomass in India

India being tropical with good sun and rain is ideal for bio-mass production. The availability of biomass in India is estimated at about 540 million tonnes per year covering residues from agriculture, forestry, and plantations. Principal agricultural residues include rice husk, rice straw, bagasse, sugar cane tops and leaves, trash, groundnut shells, cotton stalks, mustard stalks, etc. It has been estimated that about 70-75% of these wastes are used as fodder, as fuel for domestic cooking and for other economic purposes leaving behind 120150 millions tones of usable agro industrial and agricultural residues per year which could be made available for power generation. By using these surplus agricultural residues, more than 16,000 MW of grid quality power can be generated with presently available technologies. In addition, about 5000 MW of power can be produced, if all the 550 sugar mills in the country switch over to modern techniques32 co-generation. of

Biomass does not add carbon dioxide to the atmosphere as it absorbs the same amount of carbon in growing as it releases when consumed as a fuel. Its advantage is that it can be used to generate electricity with the same equipment or power plants that are now burning fossil fuels. Biomass is an important source of energy and the most important fuel worldwide after coal, oil and natural gas. Traditional use of biomass is more than its use in modern application. In the developed world biomass is again becoming important for applications such as combined heat and power generation. In addition, biomass energy is gaining significance as a source of clean heat for domestic heating and community heating applications. In fact in countries like Finland, USA and Sweden the per capita biomass energy used is higher than it is in India, China or in Asia. Biomass fuels used in India account for about one third of the total fuel used in the country, being the most important fuel used in over 90% of the rural households and about 15% of the urban households. Instead of burning the loose biomass fuel directly, it is more practical to compress it into briquettes (compressing them through a process to form blocks of different shapes) and thereby improve its utility and convenience of use. Such biomass in the dense briquetted form can either be used directly as fuel instead of coal in the traditional chulhas and furnaces or in the gasifier. Gasifier converts solid fuel into a more convenient-to-use gaseous form of fuel called producer gas. Scientists are trying to explore the advantages of biomass energy as an alternative energy source as it is renewable and free from net CO2 (carbon dioxide) emissions, and is abundantly available on earth in the form of agricultural residue, city garbage, cattle dung, firewood, etc. Bio-energy, in the form of biogas, which is derived from biomass, is expected to become one of the key energy resources for global sustainable development. At present, biogas technology provides an alternative source of energy in rural India for cooking. It is particularly useful for village households that have their own cattle. Through a simple process cattle dung is used to produce a gas, which serves as fuel for cooking. The residual dung is used as manure. Biogas plants have been set up in many areas and are becoming very popular. Using local resources, namely cattle waste and other organic wastes, energy and manure are derived. A mini biogas digester has recently been designed and developed, and is being in-field tested for domestic lighting. Indian sugar mills are rapidly turning to bagasse, the leftover of cane after it is crushed and its juice extracted, to generate electricity. This is mainly being done to clean up the environment, cut down power costs and earn additional revenue. According to current estimates, about 3500 MW of power can be generated from bagasse in the existing 430 sugar mills in the country. Around 270 MW of power has already been commissioned and more is under construction.

Technologies for biomass based energy generation Gasification Pyrolosis Direct Combustion One of the perceived limitation of biomass is the requirement of land especially clash with the land 33 requirement for food crops. It is estimated that the total land requirement for use of good biomass is 16

mmn hectares where as the total available degraded land is about 100 mm hectares. Such criticism therefore, would be misconceived.

Examples and Success Stories

There are several success stories of good biomass in the country. One such example is Impunia grass based bio mass plant at Jhansi (100kW). 18 such projects planned to be replicated: It is given to understand that cost of power is comparable with grid power.

Limitations of Biomass as energy source

Another perception seems to be that bio mass energy projects may use up the agriculture, plant residues and other bio products which would otherwise be used as organic (compost) manure. Looking into the totality and macro level picture, the constraint even if real is much amplified. Such material would constitute a very small percentage of the total bio mass energy materials.

Wind Energy

Both offshore and onshore wind energy are suitable for generation of power and are being used, although offshore use is yet to pick up in a major way due underlying higher costs. However, some countries are moving forward with their plans for offshore wind energy.

More than 95 percent of the wind potential is concentrated in five states in southern and western India. Even if the previously estimated potential of 102 GW is fully developed, wind would provide only about 8 percent of the projected electricity demand in 2022 and 5 percent in 2032. The new Berkeley Lab study has found the total techno-economic wind potential to range from 2,006 GW for 80-meter hub heights (an indication of how high the wind turbine stands above the ground) to 3,121 GW for 120-meter hub heights. Given these new estimates, the availability of wind energy can no longer be considered a constraint for wind to play a major role in Indias electricity future. The research team have been discussing their findings informally and formally with several key government agencies in India and have gotten positive responses.
Improved wind technology, including higher efficiency and hub heights, accounted for much of the increase along with more advanced mapping techniques. The previous wind potential estimate in India of 102 GW is based on the assumption that only two percent of the windy land is available for wind power development. 34 However, this assumption is not based on any assessment of land availability. The Berkeley Lab study undertook a systematic assessment of the availability of land using publicly available GIS (geographic information system) data on topography and land use and found a significantly higher availability of land that can potentially be used for wind power development, which is the primary reason for the higher potential

estimates. The study excluded land with low-quality wind, slopes greater than 20 degrees, elevation greater than 1,500 meters and certain other unsuitable areas such as forests, bodies of water and cities. The researchers obtained off-the-shelf wind speed data for heights of 80 meters, 100 meters and 120 meters from 3TIER.

Offshore Wind Energy Expanding to grow leaps and bounds in next decade. Globally, Offshore Wind Energy potential estimated at 45 GW by 2020. Growth likely be led by Europe supported by North America and Asia. Growth so far has been slow, due to various reasons, including higher cost. In last eight yrs grew from 70 MW to 1.5 GW. In Europe, Onshore Wind Projects are struggling to find land and higher capacity factors leading to Govts being pressured to provide incentives to Offshore Wind Projects. Asia to tap Offshore Wind market by 2014. China, with its 9000 miles of coast line, well poised to tap Offshore Wind Energy; Chinas potential of Offshore Wind Energy estimated at 750 MW; has one operational Offshore Wind Project and two more in planning stage. Higher capital cost getting weighed out by low running cost, longer lasting turbines, high and steady volumes. Small Hydro and Micro Hydro Ministry of New and Renewable Energy has been vested with the responsibility of developing Small Hydro Power (SHP) projects up to 25 MW station capacity. The estimated potential for power generation in the country from such plants is about 15,000 MW. Most of the potential is in Himalayan States as river-based project and in other States on irrigation canals. SHP projects are economically viable and consequently private sector has started investing in such projects. The viability of these projects improves with increase in the station capacity.

Of the estimated potential of 15,000 MW of small hydro power in the country, 5415 potential sites with an aggregate capacity of 14,292 MW have been identified. The Ministry is providing financial support to the States for identification of new potential sites and preparation of a perspective plan for the State for development of small hydro potential. The Ministry is supporting 142 SHP Projects in the government sector aggregating to 266 MW capacity in 23 States/ UTs. So far, a total of 77 projects aggregating to a capacity of 148 MW have been commissioned and the other projects are at various 35 stages of execution.

The Ministry aims to double the current growth rate that leads to a capacity addition of 500 MW per year with total installed capacity of 4000 MW by the end of 11th Plan. State Nodal Agencies provide assistance for obtaining necessary clearances and allotment of land at potential sites.
Micro-hydro power is the small-scale harnessing of energy from falling water, such as steep mountain rivers. Using this renewable, indigenous, non-polluting resource, micro-hydro plants can generate power for homes, hospitals, governmental buildings, private handicraft centers or small scale industries schools and workshops.

Practical Action promotes small-scale hydro schemes that generate up to 500 kilowatts of power. The microhydro station, which converts the energy of flowing water into electricity, provides poor communities in rural areas with an affordable, easy to maintain and long-term solution to their energy needs.

"Run of the river" systems do not require a dam or storage facility to be constructed. Instead they divert water from the stream or river, channel it in to a valley and drop it in to a turbine via a pipeline called a penstock. The turbine drives a generator that provides the electricity to the local community. By not requiring an expensive dam for water storage, run-of-the-river systems are a low-cost way to produce power. They also avoid the damaging environmental and social effects that larger hydroelectric schemes cause, including a risk of flooding. Water from the river is channelled through a settling basin, which helps to remove sediment that could harm the turbine. The water then flows into the Forebay Tank where it is directed downhill through a pipe called a penstock. When the water reaches the bottom, it drives a specially designed turbine to produce the electricity. Micro-hydro power can also be supplied to villages via portable rechargeable batteries. People can use these convenient sources of electricity to fuel anything from workshop machines to domestic lighting and there are no expensive connection costs. The batteries are charged at a station in the village, thus providing the local community with a clean, renewable source of power. For industrial use, the output from the turbine shaft can be used directly as mechanical power, as opposed to converting it into electricity via a generator or batteries. This is suitable for agro-processing activities such as milling, oil extraction and carpentry. Micro-hydro schemes are owned and operated by the communities they serve, with any maintenance carried out by skilled members of that community. So they provide employment in themselves, as well as providing the power to re-energize entire communities.


Understanding Bihar
The Background
In order to contextualize the scope and potential for the development of renewable energy systems and their contribution to the future of sustainable development of Bihar, it is necessary to summarize the current social condition of Bihar, as it has emerged after the division of the State. 1. Bihar is primarily an agriculture based state with 90% of the population living in the rural areas and 10% urbanization (2001 census). It is possible that the 2011 census may show a marked increase in urbanization; but the basic rural character of the State will not change. 2. The farm / agricultural land holding pattern is characterized by an overwhelming majority of marginal, small, semi-medium and medium farms (data 1995-96), distributed as below

S. No. 1

Size class Marginal 0 1 ha 0 0.5 ha 0.5 1 ha

Percentage of holdings 43.09 % (20.81 %) (22.28 %) 19.21 % 22.88 % (13.64 %) (09.24 %) 12.76 % (06.05 %) (04.16 %) (02.56 %) 02.07 % (01.47 %) (00.60 %)

2 3

Small Semimedium Medium

1 2 ha 2 4 ha 2 3 ha 3 4 ha 4 10 ha 4 5 ha 5 7.5 ha 7.5 10 ha


10 20 ha and above 10 20 ha 20 and above

(Source: Bihar Through Figures - 2007, Directorate of Economics and Statistics, Govt of Bihar, pp.97)

Again, these figures may change in the latest Census; they will certainly change in the direction of increases in the percentages of marginal, small and semi-medium farms due to well recognized processes of population growth, land division at the household level, continued marginalization and impoverization etc. From the planning perspective, it can be safely assumed that 80% and more of the farms will in the near future lie in the size classes denominated as marginal, small and semi-medium holdings. 3. Unlike most of the surrounding states, as well37 the all-India average, Bihar has a as significantly higher percentage of agricultural labourers as compared to cultivators. A comparison with selected States is shown below (data 2001)

Percentage of agricultural labourers and cultivators in Bihar and other states

Sr. No. 1 2 3 4 5 6 7 8 State Bihar Jharkhand Uttar Pradesh Madhya Pradesh Rajasthan Orissa West Bengal All-India % Cultivators 32.16 41.20 46.98 46.65 54.95 35.82 19.79 33.10 Percentage of Agricultural Labourers 42.84 16.32 15.14 20.32 05.78 21.88 19.64 20.29

(Source: Bihar Through Figures - 2007, Directorate of Economics and Statistics, Govt of Bihar

Even when compared with States at broadly similar levels of development, this adverse ratio of agricultural labourers to cultivators shows that landlessness is widespread and possibly a leading cause of poverty. Moreover, the overwhelming predominance of small / marginal farms, as indicated in the previous paragraph, implies that the current pattern of agriculture cannot absorb such a large labour population (the small / marginal farms will utilize household labour in preference to employed labour to conserve cash); nor does the current low productivity of small / marginal farms provide the wherewithal to increase agricultural employment; unless the productivity of small farms is increased significantly which is the challenge to be faced by RE sources this situation cannot be significantly changed in the immediate future. This implies that one of the major objectives to be achieved has to be the effective deployment / implementation of RE sources / systems to enhance agricultural productivity particularly at the small / marginal farms level to put them on a sustainable growth path. 4. Another major implication of the surplus labour in the rural areas is that labour migration probably takes place to States / areas where employment opportunities are available. This would be a continuation of the historical pattern both during the colonial period (labour exported to West Indies, Mauritius etc.), labour migration to Bengal (both West and East) during the colonial period, labour employed in coal mining and other mining activities (Bengal, Jharkhand, Chhattisgarh, Madhya Pradesh etc.) in the post-independence era and the continuing migration of labour to agriculturally and industrially developed states such as Punjab, Maharashtra, Delhi etc. Since it has been reported in the initiation workshop that biomass materials like rice husk are being exported to Punjab and sugarcane is being crushed outside the state; this implies that both biomass based materials as well as able-bodied labour is creating energy / development in other states38 these are unable as yet to create significant but energy / development in Bihar.


The migration of able-bodied labour out of a region has other sociological implications viz. that those who are left behind are generally women and children, the old and the dependent and the disabled. Since they are often unable to look after their own needs, being dependent on a money- order economy, being subject to debt exploitation and many other travails associated with extreme poverty, the immediate intervention of renewable energy systems deployed for welfare functions is also an important consideration, very often to be borne by the state and its institutions. Otherwise the vicious circle of poverty will continue, with children unable to attend school or receive education, women being forced to labour long hours for getting fuel wood and water, ill health forcing debt on older people and so on. There is now enough literature worldwide

to assert that vicious cycles can be replaced by virtuous cycles of sustainable development in which renewable energy plays a central role. 6. Another way of understanding Bihar is to consider the relative contribution of various sectors to the Net State Domestic Product at current Prices (Rs Cr.)
Table 1.3 Contribution of various sectors to the Net State Domestic Product in Bihar
S. No. Sector 2002-03 1,841,931 (100%) 2 Agriculture 3 Manufacturing (Regd. & Unregd) 4 All services 384,882 (20.89) 244,105 (13.25) 988,800 (53.68) 2003-04 2,004,703 (100%) 428,031 (25.35) 262,977 (13.11) 1,071,998 (53.47) 2004-05 2,158,718 (100%) 430,519 (19.94) 285,219 (13.21) 1,180,417 (54.68)

1 State

(Source: Bihar Through Figures - 2007, Directorate of Economics and Statistics, Govt of Bihar, pp.64)

It is evident that Agriculture contributes significantly more to the Domestic Product than combined Manufacturing (both Registered and Unregistered). All services contribute by far the largest percentage of the Domestic Product. This circumstance can, in fact, be turned to Bihars advantage since Agriculture can become a net producer of green energy (and green materials) in the near future and services generally have a low intensity of energy consumption per unit of value addition. Also, instead of committing to a long term path of energy-intensive industrialization and energy-dependent infrastructure, if Bihar can chart a path of light industry which can also produce electricity or energy as a by-product, from renewable sources, it can lay the foundation for sustainable growth across all three sectors of 39 the economy. A significant range of agro-processing industries (food processing, dairies, cheese factories, abattoirs and meat processing industries etc.) have the possibility of cogenerating electricity and / or heat if suitably designed at the initial stages, which not only adds

to their viability but also contributes to green electricity in grids. This will be explored further in the chapter on Bio-energy. 7. The current electricity scenario in Bihar can be judged from the following table

Current Electricity Scenario in Bihar

Attribute State installed capacity Of which Thermal (Barauni) (Muzaffarpur) Hydro (Kosi) Share of CG stations AT&C Losses Energy shortage Peak Deficit Per Capita consumption National consumption Value 590 MW 540 MW 320 MW 220 MW 50 MW 1379 MW 44.45 % 16.4 % 27.6 % 93 kWh 650 kWh

Source: 3rd North East and East Power Summit 2010, CEA and PFC

Existing power stations

Name of power station Hydro Kosi (4x4.8) Sone E&W Canal(2x1.65+4x1.65) East Gandak Canal(3x5) Agnoor Dhelabagh Total Thermal Barauni (2x50+2x110) Muzaffarpur (2x10) Total 320 320 540 BSEB BSEB** 19.2 9.9 15 1.0 1.0 46.1 BSHPC* BSHPC BSHPC BSHPC BSHPC Installed Capacity (MW) Agency

*BSEB transferred the project to BSHPC on 16th Nov.2003 **Now transferred to new JV-Vaishali Generating Co. (Source: Road Map for Development of Power Sector in Bihar A Report of the Special Task Force on Bihar, Govt. of India, July 2007)

40 Thus Bihar, with approx 600MW of its own generation capacity, is heavily dependent on the power supplied by Central Generating Stations. This lack of power poses an enormous constraint for all future development whether in agriculture, industry or services.

Supply position
Peak Peak Demand (MW) Peak Met (MW) Peak Deficit (-) / Surplus (+) Peak Deficit / Surplus (%) Energy Energy Requirement (MU) Energy Availability (MU) Energy Deficit (-) / Surplus (+) MU Energy Deficit / Surplus (%) 909 (p.m.) 773 (p.m.) -136 (p.m.) -15 12384 10772 -1612 -13 March 2011 2123 1402 -721 -34 April 10 March 11 2140 1649 -481 -22.5

(Source: Central Electricity Authority (CEA), Govt of India), March 2011

Power supply position

Period Peak Demand (MW) Peak Met (MW) Peak Deficit/ Surplus (MW) -121 -64 -185 0 -198 -237 -639 -509 -740 -414 -650 Peak Deficit/ Surplus (%) -8.6 -4.6 -19.0 0.0 -15.1 -16.9 -34.0 -27.6 -32.9 -20.0 -32.1 Energy Energy Requirement Availability (MU) (MU) Energy Deficit/ Surplus (MU) -378 -674 -1710 -725 -737 -684 -1222 -1726 -1,673 -1,370 -285 Energy Deficit/ Surplus (%) -4.0 -8.3 -22.5 -10.1 -9.3 -8.1 -13.3 -16.4 -14.4 -14.0 -23.1

9TH PLAN END 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 APR-DEC 2010 DEC 2010

1409 1389 973 980 1314 1399 1882 1842 2,249 2,073 2,023

1288 1325 788 980 1116 1162 1243 1333 1,509 1,659 1,373

9370 8096 7588 7201 7955 8425 9155 10527 11,587 9,792 1,232

8992 7422 5878 6476 7218 7741 7933 8801 9,914 8,422 947

(Source: Power Scenario at a Glance, January 2011, Central Electricity Authority (CEA), Govt of India (pp. 92-93))

Proposed projects
Name of power project Hydro Indrapuri Reservoir (5x90) Telhar Kund PSS (4X100) Sinafdar PSS (3X115) Installed Capacity(MW) Agency

41 450
400 345


Panchghotia PSS (3X75) Hathiadah-Durgawati PSS(8X200) Dagmara Barrage (3x42) Thermal Barauni Extn. (2x250) Muzaffarpur (2x250) Nabi Nagar Katihar(4x250) Pirapanti

225 1600 126


500 500 2000 1000 4000


(Source: Road Map for Development of Power Sector in Bihar A Report of the Special Task Force on Bihar, Govt. of India, July 2007).


These projects will add enormously to the States existing generation capacity. However, by their very nature, large projects will involve long construction and commissioning times as also large financial burden on the States financial resources.
Table 1.9 Bihars share of power projects
Name of the project Farakka (3 x 200 MW+ 2 x 500 MW) Kahalgaon (4 x 210 MW) Talcher St-1(2 x 500 MW) Kahalgaon St-II (1x500 MW) Sub-total Rangit Hydro ( 3 x 20 MW) Chukha (270 MW) Tala HPS (3x170 MW) Sub-total Total allocation to Bihar Total Share(MW) 363 222 354 63* 1002 21 80 130 231 1233 Including unallocated share of 25 MW Unallocated Shares (MW) 12(included in total share) 13(included in total share)

* Date of Commercial Operation (COD) yet to be declared. (Source: Road Map for Development of Power Sector in Bihar A Report of the Special Task Force on Bihar, Govt. of India, July 2007)

Tentative share of Bihar in central sector projects expected during 11th Plan
Name Teesta ST-V Thermal Kahalgaon St-II BARH-I FARAKKA ST-III BARH-II NABINAGAR (other than railway) NTPC NTPC NTPC NTPC NTPC 1000 1980 1320 500 1320 500 126 (firm share) 324* 127* 53 188 103 2007-08 2009-11 2011-12 2009-10 2011-12 2010-12 Agency Capacity (MW) NHPC 510 Tentative Share (MW) 52 Target date 2007-08


*as indicated by NTPC, allocation yet to be decided by MoP (Source: Road Map for Development of Power Sector in BiharA Report of the Special Task Force on Bihar, Govt. of India, July 2007)

Power scenario at the end of 11th Plan

Peak Peak Demand (MW) Peak Met (MW) Peak Deficit (-)/surplus (+) MW Peak Deficit/Surplus (%) Energy Requirement (MU) Energy Energy availability (MU) 2011-12 3607 1534 -2073 -57.5 19905 11755


Peak Energy Deficit (-) / Surplus (+) Energy Deficit / Surplus (%)

2011-12 -8150 -40.9

(Source: Road Map for Development of Power Sector in Bihar A Report of the Special Task Force on Bihar, Govt. of India, July 2007)

Thus, both energy deficit and peak deficit have increased enormously towards end of 11 th Plan as compared to Table -6 (2006-07), indicating demand for outstrips supply.


Table - Demand forecast
Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2016-17 2021-22 Peak Load (MW) 1570 1842 2177 2575 3046 3607 5598 9567 Energy Requirement (MU) 9629 11134 12874 14886 17213 19905 32857 58248

(Source: Road Map for Development of Power Sector in Bihar A Report of the Special Task Force on Bihar, Govt. of India, July 2007)

Since Bihar has started with per capita electricity consumption well below the national average, the demand growth will be high in the foreseeable future; this will happen in a situation where all states will be competing for power from CGS. This also indicates the tremendous potential forfuture RE development in Bihar.
T & D losses
Year 2003 04 2004 05 2005 06 2006 07 2007 - 08 T & D Losses 36.66 38.88 43.96 50.67 48.79

(Source: Power Scenario at a Glance, January 2011, Central Electricity Authority (CEA), Govt of India (pp. 92-93))

8. Varying estimates exist of Bihars Aggregate Technical and Commercial (AT&C) losses : Table 1.14 Estimates of Bihars AT&C losses
Years 2004-06 2004-05 2004-05 2003-04 2004-04 Source Power Road Map BSEB ICRA PFC (Performance of State Power Utilities Report) PFC Estimate 40 % 46 % 48 % 77 % 74.09%

Reduction Trend 3% p.a. in 2004-05 compared to 2003-04 (PFC Report)


With regard to T&D losses, the following observation has been made in section 5.8.10 of National Electricity Policy 2005, released by Ministry of Power, Govt of India: It would have to be clearly recognized that Power Sector will remain unviable until T&D losses are brought down significantly and rapidly. A large number of States have been reporting losses of over 40% in the recent years. By any standards, these are unsustainable and imply a steady decline of power sector operations. Continuation of the present level of losses would not only pose a threat to the power sector operations but also jeopardize the growth prospects of the economy as a whole. No reforms can succeed in the midst of such large pilferages on a continuing basis. Action on reduction of AT&C losses has to be taken on a priority basis, for which adequate powers are available under the Electricity Act, 2003. The following sections of the Act are relevant:
Table 1.15 Provisions under Electricity Act 2003 to reduce AT&C losses
Section Number Section 135 Pertaining to Theft of Electricity Penalty Imprisonment upto 3 years or fine or both, subject to qualification; burden of proof on consumer Imprisonment upto 3 years or fine or both, subject to qualification; for repeat offence, imprisonment not less than 6 months and upto 5 years and fine not less than Rs. 10,000 Imprisonment upto 3 years or fine or both Imprisonment upto 3 years or fine upto Rs.10,000/- or both; in case of continuing offence, daily fine upto Rs.500

Section 136

Theft of Electricity lines and materials

Section 137 Section 138

Receiving stolen property Interference with meters or works of licensee Civil court not to have jurisdiction (to entertain suit or grant injunction)

Section 145

(Source: Ministry of Power, Govt of India)


This is an impressive performance, yet it adds to the problem of demand being far greater than supply. 10. Agriculture power sales 28% of total sales Agriculture power revenue 4 % of total revenue 11. The Credit Deposit (CD) Ratio of different categories of banks in Bihar is as shown: (Other figures in Rs. Crores, rounded) Table - CD Ratios of banks in Bihar
Bank Commercial Banks Cooperative Banks RRBs Total Deposits 91243 2972 12801 107017 Advances 26974 1543 5615 34132 CD Ratio 29.5 % 51.9 % 43.8 % 31.9 %

(Source: State Level Bankers Committee, Bihar: 35th Review Meeting, Jan 2011, pg 20)

Thus, commercial banks business constitutes the largest share of the banking industry in Bihar and has the lowest CD Ratio. With respect to other parts of India, the comparative picture is as shown below: Table 1.17 CD Ratios of Commercial Banks
2000-01 Bihar India 20.70 56.70 2001-02 21.90 58.40 2002-03 23.70 59.20 2003-04 26.90 58.20 2004-05 31.40 66.00 2005-06 30.20 72.50 2006-07 31.10 75.00

(Source: Road Map for Rural Industrialization of Bihar Report of the Special Task Force on Bihar, Govt. of India, July 2008; Annexure VIII pg 74)

The above comparison indicates that local savings (as deposits) are not returning to the local economy (as Advances or Credit); in effect, capital is flowing out of Bihar. Taken together with the earlier observations, this implies that labour, biomass resources and capital have been flowing out of Bihar. This may serve to elucidate the major reasons why development is not taking place in Bihar at the desired pace, despite aspirations. 12. The recovery data for bankers is as follows: (Rs Crores) Table - Recovery data for bankers in Bihar
Bank Cooperative RRBs Total Demand raised 533 792 7478 Amt. recovered 2715 225 560 3500 Recovery % 44.13 % 42.22 % 70.66 % 46.81 % Commercial 6152

(Source: SLBC, 35th Review Meeting, pg. 21)

The bankers accept that the recovery rate is poor. Informal discussion with the bankers 47 has indicated that with poor rates of recovery, bankers are wary of further lending. Hence, one of the most powerful engines of development is brought to a halt.


However, section 5.8.1 of National Electricity Policy 2005, released by Ministry of Power, Govt of India, states that Public service obligations like increasing access to

electricity to rural households and small and marginal farmers have highest priority over public finances.


The districts affected by left wing extremism have been officially recognized, as follows: Arwal, Aurangabad, Gaya, Jamui, Jehanabad and Rohtas. (Source: SLBC 35th Review Meeting - pg 27, pg 29A)


The figures indicate that there are a very large number of cooperative institutions financed by the Bihar State KVIC, almost 2500 in number; their organizational reach could be utilized for the rapid diffusion of RE across Bihar, particularly as many of them are backwardly linked to forms of agricultural production. This aspect needs further study.


The composite picture that emerges from all of the above, based on an energy perspective, is as follows :


Due to shortages of grid electricity from conventional generation sources, industrialization will continue to lag, particularly because large sources of generation have long gestation periods while domestic demand will spurt as aspirations for electricity increase. This indicates that, under the appropriate conditions, fast deployment modular RE systems can grow rapidly.

b. Agricultural growth can add to the energy supply sources provided the principal constraints electricity for irrigation can be suitably addressed through RE deployment.


Growth of light industry linked to various forms of agricultural processing can

become sustainable provided the process waste streams can be harnessed for energy generation.

d. Service sector growth, which is low on energy consumption, can become sustainable in energy terms, provided there is a conscious strategy for the substitution of energy by information. Thus, many operations such48 billing, financial and banking transactions, as travel booking, payments etc. can be conducted via computers thereby avoiding travel cost, travel time and travel energy. With the rapid growth of telecom connectivity, this

option for development must be consciously utilized to the fullest extent for rapid growth in the services economy and improvement of the quality of services. This will also generate low energy employment and progressively higher value employment in the tertiary sector.


Broadly taken together, the various policies across agriculture, water, rural industrialization and renewable energy are capable of driving growth in a desirable sustainable direction, though careful monitoring will be called for at all stages, given the present deficit of infrastructure and other aspects of development. This is the real challenge that the RE Action Plan has to confront.

18. Finally, this path of development has to be pioneered in an international environment forcing a multiplicity of crisis, as below: a. the climate crisis b. the water crisis c. the fossil fuel availability crisis d. the crisis caused by escalating prices of fossil fuels e. the global agricultural crisis f. the health crisis

This emergent scenario of global crisis adds further constraints to the development path to be chosen and it would be unrealistic for any Action Plan to ignore this backdrop. The remainder of this Report will concentrate on RE sources as potentially providing solutions in the emerging context, for Bihar. It is important to note here that RE represents hitherto untapped resources over and beyond the aforementioned labour, capital and agricultural commodities. These resources are manifest as wind, solar, bio-energy and small hydro resources which can be harnessed to energize development.


Electricity is the most critical strategic infrastructure in our society today and its importance will increase in the future. Its direct importance in reliably delivering energy to point of use enables every other major technological infrastructure in our society. By 2050 World Energy Council envisages the global energy mix will be made up of at least eight energy sources (coal, oil, gas, nuclear, hydro, biomass, wind & solar) with none expected to have more than 30% share of the market. Electricity can make this diverse supply portfolio possible while simultaneously meeting global energy and environmental demands.

In spite of several initiatives taken by Government of India and progress in extending the national grid, 26 percent of rural households still do not have access to electricity. In India the Ministry of Power has specifically targeted scheme; Decentralized Distributed Generation (DDG) for state actors & community organizations to invest in offgrid generation and distribution in rural areas. In many areas, despite grid availability, households have chosen not to connect, frequently because of insufficient and unreliable supply of electricity. With the demand for power outstripping its availability, rural areas face major challenges of very low per capita consumption and inadequate power supply (most rural areas receive only a few hours of supply per day) made worse by poor quality of service. Rural electrification supply in India has been lagging in terms of service as well as penetration; Decentralized Distributed Generation (DDG) is other option for rural electrification that has been implemented in many areas. The rural household has access to electricity, and the supply suffers from frequent power cuts, high fluctuation in voltage and frequency with so called blackouts and brownouts. A major bottleneck in the development of the power sector is the poor financial state of the utilities, which can be attributed to the lack of adequate revenues and state subsidies for supply to the rural subscribers. The present policies of building large centralized generation and extended distribution networks are clearly unlikely to solve the problems of rural electricity supply, at least in the near future. Decentralized power generation close to the rural load centers using renewable sources appears to have the potential to address at least some of the problems of rural electrification. It is another option for rural electrification that has been implemented successfully in remote villages where connectivity to


the grid is not feasible and cost effective. Grid Extension and Decentralized Distributed Generation are the two basic means used to electrify rural areas. THE NEED: There is a far greater challenge in justifying DDG projects in developing countries, particularly in rural settings to provide electricity to meet the basic needs of village dwellers that do not have access to grid electricity. Here, the challenge is to work out the economic viability of the projects which is often more important than the limited choice of site-specific technologies. Limited rural income generally can only cover operating costs and some equity, leaving the majority of the initial capital expenditures to be supported in the form of grants from local government or development agencies.

The starting point still remains the assessment of a suitable technology option which can be managed by the local community. This means that both business and technical capacities of the local community must be built to operate and maintain the energy system. For such applications in remote locations, the most suitable of all technologies (solar photovoltaic or SPV) turns out to be the most desirable option. Small diesel-generator (DG) sets, which are much cheaper, offer electricity albeit at high cost to end-users. Currently, a biomass gasification system coupled with a gas engine is emerging as another attractive option and stands in between the other two technologies. This technology uses gas rich in methane produced from biomass gasification (not combustion) which after clean-up is fired in a conventional compression ignition dual-fuel engine. An alternator linked to the engine produces electricity. Renewable Energy based-DDG projects across the world have been successful in areas where demand exists and DDG has been found to be economically viable. However, successes at the local or the micro-level have rarely been scaled up. This is due to a number of institutional, financial, and technical reasons. In this section, we look at the issues that have impeded the development of Renewable Energy based DDG projects.

Financial institutions in India, due to lack of adequate knowledge of these technologies, their advantages, and returns, are not convinced enough to lend for the purchase of these (RETs). A number of government agencies collect data at the rural level that focus on different aspects


of energy, including resource availability, supply potential, and to a limited extent demand assessment. This data is neither shared nor collated into a single database for an informed decision-making system either by the government or private sector, which results in limited data and information for rural energy entrepreneurs looking to enter the clean energy DDG market.

DDG concept has been dependent on national programs that have either been technologycentric or end-use-based without any inter-linkages. Owing to a rigid program based approach, little or no attention has been given to either the effectiveness of these programs or the issues that promote human welfare through a measurable approach.

Governments are slowly coming forward with creative ways to support DDG. However, the gap between government subsidies and the true cost of a project can at times be too wide to be bridged by local users. Special-purpose models are being created to clearly delineate the responsibility of the local community in terms of ownership of assets through shareholding, operation and maintenance, and payment mechanisms. These models still need to be standardized, improved upon and tested across several different locations before they can be widely applied.

The base line study will be done in remote villages (Cluster of 19 villages from the states of Bihar, Jharkhand, and Orissa) of India and this study shall be undertaken by The Green Mantra (TGM). The aim of this study is to demonstrate how renewable sources of energy can reduce poverty through improved quality of life and increased livelihood opportunities in remote, non-electrified villages of India that are not likely to get electricity from the grid.


The study will start with significant amounts of desk study to compile a full inventory of all types of energy interventions in the proposed three states namely Bihar, Orissa and Jharkhand.

Based on extensive desk studies of available reports, field surveys and site visits, those Interventions that targeted the poor or rural dwellers will be identified. As a first step for ensuring energy access, village inventory data is to be compiled to understand the local availability of resources to meet the energy needs, the skill set of the affected population and their capability to pay for energy resources.

This can be achieved using data and information available through geological surveys, demographic surveys, energy supply, demand projections and locally available natural resources like wind, solar, biomass, and water/hydro resource to meet the energy needs. The effort would be to first get access to available data through government records, published information and support of organizations like Google, etc. and supplement it with grass root level validation and value addition using a survey questionnaire to assess the availability and acceptability of local resources to meet their energy needs. WORK PLAN/ METHODOLOGY The methodology for the study incorporates both formal and informal approaches to obtaining the information desired. The Work Plan shall be implemented in the following three phases: 1. Selection of District/Block of Villages /Cluster for initial study 2. Preparing a database of Village level Inventory in selected states 3. Prepare a detailed project proposal with cost estimates and revenue model 1. Selection of District/Block of Villages /Cluster for initial study.


They are: Aurangabad Gaya Koraput Other area in Bihar/ Jharkhand/ Orissa.

2. Preparing a database of Village level Inventory in selected states. Some of the issues involved and its implication while building up Village Inventory data base are as under: Physical maps of the area (geological maps) showing topography, forest cover, water bodies etc. Socio political Map / Census data helps in identifying different groups, fixed and migratory communities, Number of households, adults, women, children , social and cultural values etc. Pre existing energy infrastructure such as proximity to electricity grid/sub stations, gas pipelines, solid fuel availability and delivery system. Availability and proximity t motor able roads, railway tracks, waterways etc. o Availability of Schools, Banks, post office, Primary health centers, ponds, wells, tanks etc. Level of education and skill sets of local people will help in understanding the most effective means of communication like posters, leaflets, talks and drama etc. Income levels in community and how is the wealth held in cash, fixed assets like land, building, capital goods, livestock etc.


Decision making process in community, stakeholders, gatekeeper influence s, Groups. Predominant commercial activity /business in the community such as making handicrafts from local produce, pottery, carpet making etc. Whether income is mostly locally generated or comes from elsewhere e.g. migratory workers in other states or foreign countries. How does income vary across the year e.g. with agriculture harvesting, remittance from abroad or regular salary payments from local industry and offices. What is the current level of expenditure by local people per m onth to meet their energy needs (in cash or kind). An understanding of the ability to pay by local people and their willingness to pay . It helps to understand the pattern of expenditure by local people as it helps in understanding their priorities. Sense of ownership and attitude towards theft and pilferage by local community. Modalities for collection of revenue. Who will collect? Where will the cash be kept? Periodicity of collection regular or harvest linked (payable when able).

3. Prepare a detailed project proposal with cost estimates and revenue model. The revenue model shall be based on: Decentralized Distributed Generation scheme


Micro grid models ( areas connected to grid but poor availability of power) Domestic consumers &commercial enterprises tariff Selection of Technology and its sizing/suggested suppliers Sources for funding recommended Recommendation of Local Entrepreneur to set up and operate EA project Skills and support required to enable and empower LE Income generating schemes suited to availability of local resources, possible after commissioning of EA project

Sample Districts Selected: 1. Aurangabad (Bihar) 2. Gaya (Bihar) 3. Korput (Orissa)

Dist I Aurangabad (Bihar)

Population = 25,11,243 (Twenty Five Lac, Eleven Thousand Two Hundred Forty Three) As per the 2011 Census, 85% of the population of Bihar lives in villages. Of the 38 districts in Bihar, the villages from District Aurangabad have been selected for the proposed study. Aurangabad district is located in south western part of Bihar with a total population of more than 25 lakhs and about 2.86 lakhs households. It is predominantly a rural district (rural population being 18.43 lakhs against 1.7 lakhs in urban areas, as per Census 2001). 2.42% of the total population of Bihar resides in Aurangabad District, where 1239 villages are yet to be electrified (including de-electrified).


The number of villages for which electrification is to be carried out and the different type of consumers to be provided connections are given below. Category of consumers for electrification

Particulars No.

No. of Villages BPL Consumers

1239 65219

Dist II Gaya (Bihar)

Population = 43,79,383 (Forty Three Lac, Seventy Nine Thousand, Three Hundred Eighty Three)

In addition to Aurangabad, the villages from Gaya have also been selected for the proposed Baseline Study. Gaya district is located in the central part of Bihar with a total population of more than 43 lakhs with 5.1 lakh number of households. It is predominantly a rural district (rural population being 29.97 lakhs against 4.76 lakh in urban areas). It is the fifth highest in the population percentage of Bihar, with a density (per sq km) of 880. The district has a total of 2680 Villages spread in 24 Blocks including 2059 Villages which are yet to be electrified (including de-electrified). No. of Villages for which electrification is to be carried out and the numbers of the different types of consumers to be provided connections are given below: Category of consumers for electrification

Particulars No.

No. of Villages


BPL Consumers 73664

Dist III - Koraput (Orissa)


Population = 13,76,934 (Thirteen Lac, Seventy Six Thousand, Nine Hundred Thirty Four) Koraput is one amongst 30 districts of Orissa state. Total 14 Taluks, 231 Villages are in this district. This district is a part of the tribal belt in southern Orissa with a population of more than 13 lac people with a literacy percentage of 49.87%; out of which 38% are females and 61% are males.

Electrification Data: Particulars No. Total No. of villages 1997 Electrified village 1102 Non-electrified village 895 % of Electrification 55.18%

Preface Energy is a key driver to sustain an impressive economic growth of 6-8% in the country. There is hardly any area where energy input is not required though in a varying measure. So, it is quite important to ensure a sustainable flow of all forms of energy. That is not all; as energy should also be used quite efficiently. Energy conservation is all the more needed in the present day scenario. As of now, around 75-80% of our population lives in the villages, where energy supplies are quite deficient in nature. As per census 2001, nearly 44% of the rural households do not have any access to electricity. Out of these some of the villages are situated in quite inhospitable terrains where taking grid power would either be quite difficult or un-economical. Thus it leaves due scope for alternate forms of energy to make their way into such remote rural areas.

Recently, the concept of rural electrification via Distributed Generation (DG) has come as a boon for the rural areas. This is in tune with the Govt. of Indias initiative to provide electricity to all by the year 2012. The key objective is to ensure an integrated development of the villages accompanied by wholesome economic growth of the country.


CONCEPT OF DISTRIBUTED GENERATION For a large and dispersed rural country, decentralized power generation systems, where in electricity is generated at consumer end and thereby avoiding transmission and distribution costs, offers a better solution. Gokak Committee had gone into details about the concept of decentralized generation to meet the needs of rural masses. The main recommendations of the Committee are as under :-

1. The concept of Distributed Generation (D.G.) has been taken as decentralized generation and distribution of power especially in the rural areas. In India, the deregulation of the power sector has not made much headway but the problem of T&D losses, the unreliability of the grid and the problem of remote and inaccessible regions have provoked the debate on the subject.

2. The D.G. technologies in India relate to turbines, micro turbines, wind turbines, biomass, and gasification of biomass, solar photovoltaic and hybrid systems. However, most of the decentralized plants are based on wind power, hydro power and biomass and biomass gasification. The technology of solar photovoltaic is costly and fuel cells are yet to be commercialized.

3. In so far as the 18,000 villages in remote and inaccessible areas are concerned, the extension of grid power is not going to be economical. Decentralized plants based on biomass, gasification of biomass, hydel power and solar thermal power and solar photovaltaics are the appropriate solution for these areas. A decision with regard to the available options will have to be taken depending on the feature of each site/village.

4. As regards the remaining unelectrified villages, the responsibility should rest primarily with the State Governments. The Govt. of India would, however, act as the facilitator to them.

5. As people in many of the electrified villages are very much dissatisfied with the quality of grid power, such villages also encouraged to go ahead with the Distributed Generation Schemes. These should also be the responsibility of the State Governments


6. In so far as the 18,000 villages in remote and inaccessible areas are concerned, the extension of grid power is not going to be economical. Decentralized plants based on biomass, gasification of biomass, hydel power and solar thermal power and solar photovaltaics are the appropriate solution for these areas. A decision with regard to the available options will have to be taken depending on the feature of each site/village.

7. As regards the remaining unelectrified villages, the responsibility should rest primarily with the State Governments. The Govt. of India would, however, act as the facilitator to them.

8. As people in many of the electrified villages are very much dissatisfied with the quality of grid power, such villages also encouraged to go ahead with the Distributed Generation Schemes. These should also be the responsibility of the State Governments.

9. Though India has made considerable progress in adopting technologies based on renewable sources of energy these are not yet capable of commercial application on a large scale.

10. Association of Village Panchayat with Village Level Committees is important for the success of the programme. The fact that the Rural Electric Cooperatives which were established in the 80.s for distribution of power supplied by the SEBs incurred losses need not deter us from trying them out again as these did have some positive features.

Origin of the Study Providing electricity to the rural areas is high on the priority of the Central government. The Ministry of Power (MOP) has put in place a mission known as REST, which stands for Rural Electrification Supply Technology Mission. Primary purpose of this mission is to speed up the electrification of all villages progressively by the year 2012 via use of Renewable energy sources and similar other decentralized technologies. For rural electrification. The essence being to set up De-centralised Distributed Generation(DDG) projects based on renewable energy technologies like biomass and solar etc. Site Selection


Following which, preliminary survey was carried out in the following few villages coming under the jurisdiction of the Gaya district: Amghati Telni Vohva Danipur Vijaynagar Sarvodayapuri Khajuriya Vishanpur Shankarpur Kalyanpur Bhakauriya Gulariyataud Ghavataud Jhagraahi Morve Kodiya Domataad Purnibathan

A well structured questionnaire was framed for each of these villages to collect the primary information. The study was based on an end use approach within which the existing energy use patterns as well as the projected demands of the individual village were evaluated. Accordingly, the collected data was thoroughly analyses to evolve a suitable design plan for village electrification. Due consideration was accorded to the local needs and there from to the demand and supply requirements of energy use in those areas. The participatory approach of managing the intended facility was given a proper recognition. In totality, the following few parameters were focused in the first instance through closely held discussions with the individual rural groups: Technical Feasibility (of the energy options) Initial Readiness to pay for better mode of lighting (traditional oil lamps in use) Overall Sustainability (of the intended project)


Renewable Energy Technologies as DDG

BIOMASS GASIFICATION The electric power demand in most Indian villages lies between 20KW-100KW and the locally available surplus biomass is often sufficient to meet these power requirements. Widespread availability of agriculture wastage, fuel wood, animal dung and wasteland make biofuel and biomass based energy appealing, with biomass gasification representing one of the most promising small-scale electricity generating technologies. The use of biomass gasification technology for rural electrification still remains limited, though with large potential across India. Current installed capacity stands at around 350 MW, with small-scale systems representing around 43MW of this, across 1800 systems. The potential for larger scale replication of biomass gasification systems is estimated to be between 20,000 MW and 57,000MW. Fuel supply plays a crucial role in determining the financial viability and sustainability of biomass gasifier power plants. Competition with food produce makes biomass a potentially contentious fuel supply, precluding the dedicated use of existing farmland for biomass production. Mismanagement or unforeseen shortages of managed crops can put pressure on forests or common property resources and can threaten the feasibility of distributed power plants. However, in general rural India has an abundance of wasteland and marginal farmland. Successful projects have helped local communities to effectively utilize energy plantations or common land for the growing of suitable biomass fuel crops. Agricultural residuals can supplement fuel crops for small-scale gasification plants. In addition, in some environments electricity allows for increased irrigation and utilization of ground water stocks. Where the community can regulate the use of scarce ground water, farmers can grow cash crops and drought sensitive crops instead of low yielding millets. For small-scale electrification, particularly community loads in rural areas, biomass gasification represent a sustainable and relatively low cost option for fulfilling basic electricity needs

BIOMASS DIGESTER Biogas digesters also hold great promise in delivering change in rural areas, especially in India, where there are large amounts of cattle. Biogas is produced from animal and human waste through a process known as anaerobic digestion, done with organic matter. The marsh gas, or methane, produced, can be used as fuel, replacing traditional biomass or even kerosene and LPG. Some of the advantages of biogas are that there are lots of animals in India, thus it can be produced at low cost, and that the technology to make biogas can be produced


locally as well. Furthermore, as Practical Action states, small-scale biogas production in rural areas is now a well-established technology, particularly China and India.

Small run-of-river hydro has enjoyed modest success in many locations across India as a localized, cheap, clean, reliable and minimal-impact electrification option. Currently only 210MW are installed across 267 projects, predominating in the north. Small hydro systems offer significant potential for wider deployment across mountainous rural areas. Across India significant untapped potential would allow for up to 15GW of additional capacity. Prospects for significant expansion of hydro-storage are smaller, and recent growth is stagnating. The investment costs for small rural and remote hydro power projects in India vary between Rs. 124,310Rs. 233,335 per kW. This includes the cost of power evacuation and distribution system. At a discount rate of 12%, the energy delivery costs range from Rs.3/kWh up to around Rs.9/kWh, dependent on the plant load factors. Seasonal variation in water flow and under utilization of the produced electricity can threaten the viability of hydro plants.
WIND HYBRID Wind power represents one of the most widespread and commercially viable renewable energy generation technologies, gaining significant levels of deployment across both the developing and industrialized world. Most of the wind energy deployment is grid connected. Due to supply variations it is less suited to off-grid stand alone generation. However, when considered part of a hybrid system, alongside diesel, biomass or solar generation, wind turbines can be economically appealing. Decreasing capital costs as well as government incentives strengthen the viability of wind-hybrid systems. However difficulties in siting of turbines, combined with often undocumented local wind-speed variations, make effective deployment time and information intensive, reducing its suitability even in hybridconfiguration for small-scale applications. Wind-hybrid systems are currently in limited operation at a handful of DDG sites across India. While the wind resource is generally poor in many parts of India, an estimate a potential for around 45GW across 13 states. They show wind-hybrid systems to be viable for decentralised generation where average wind speeds exceed 4.75m/s. The cost estimates are highly sensitive to scale, load factor, wind resource


and choice of back-up/supplementing generation. Diesel and increasingly biomass gasification technology are chosen to supplement wind power, with estimated cost per unit around Rs8/kWh. SOLAR PHOTOVOLTAIC The Indian climatic conditions are highly suited to solar photovoltaic (PV) technology; India enjoys between 250-300 sunny days per year, translating to between 4-7kwh/m2 (compared to an average of 2.7kwh/m2 in UK and Germany). With capital costs of between $3,000/kw and $6,000/kw, solar PV and thermal technologies are very expensive, making them only suitable for small highly dispersed loads or for remote locations. Solar Home Systems (SHS) and small solar panel systems have been used in such niche applications especially in projects that requiring small loads of 20-100W. SHS do not have sufficient capacity to serve small rural industries and groups of villages with 50-100kw demand profiles. However, SHS and solar lanterns have been successful in southern India and are becoming more widely available in northern parts. The Ministry of New and Renewable Energy (MNRE) under its PV programme has distributed around 610,000 systems, totalling around 20MW of capacity. This includes solar lanterns, home lighting systems, street lighting systems, water pumping systems, and an aggregate capacity of about 1.2 MW of stand-alone power plants. For community scale solar power plants, the cost of delivering electricity for Indian conditions at Sagar Island (Sunderbans, West Bengal) to be between Rs. 26-34/kWh10. Similarly, energy delivered from solar lanterns and SHS is estimated to typically lie between Rs.20/kwh and Rs.30/kWh per kWh cost estimates ranging from between Rs.7/kWh and Rs.10/kWh; our fieldwork puts the


Technology Small biomass plants

Application Water pumps Mills Refrigeration Lighting and communication

Advantages Allows for incomegenerating activities Base load operation, continuous operation possible Long life, high reliability Allows for incomegenerating activities

Disadvantages Noxious emissions


Mills Lighting, communication and other

Site-specific Intermittent Water availability


Lighting and communication Mills pumps

No fuel cost

Expensive batteries Intermittent energy services


Basic lighting and electronic equipment

No fuel cost

High capital costs High cost of battery replacement Needs further R&D



Light-Emitting Tapes Solar Charged adhesive and magnetic tapes with socket-less LEDs encased in silicon for lighting outdoor stairwells, hazardous areas and materials, sign posts, fence perimeters, entrances, vehicles, trailers, boats, docks, and traffic cones. The weatherproof tapes may be cut into any lengths for fitting into small areas or any size surface while emitting light to the cut point. Unlike Electroluminescent or other LED light ropes in the market, this tape is powered by the sun and is not affected by cutting it to any desired length.

Power Generation Station Not only can this remarkable power station provide enough energy to charge up your digital devices, LED lighting, and even run a group of special window fans without need of tapping into the grid, it can also charge AA and AAA batteries directly for your flashlights, MPEG players, and digital cameras.

Self-Powered Safety Strip Weighing in at only 3 ounces (including batteries), this waterproof reflective active light safety strip charges up using flexible solar film requiring only a few hours of full sunlight to light up through the night from over 140 lights dispersed across its surface. No replacement batteries necessary to emit light for up to 5 years.

Self-Powered Hollow Blinking Safety Cone This retro-fitted product attaches to any traffic cone or safety barrel allowing it to remain hollow for stacking and flashes red light all week long from only a few hours of sunlight exposure on a single day.



The economically exploitable renewable resources in Bihar are solar, wind, hydro and biomass. With an solar average irradiation of 4.89kwh/m and average daily sunshine of 8 hours, solar power is a very attractive energy resource. if the installation cost are competitive enough, solar photovoltaic technology is tipped to dominate the scene as it can be implemented anywhere in the state for electricity production Wind power on the other hand, is not a very attractive resource in Bihar. This is mainly due to low wind speed across the state. The resource may be exploitable with low power wind generation, however it is expected that the penetration rate of such system will not dominate due to higher installation costs compared with other technologies.

Hydro power is not feasible due to flat land topology, flow rate and available head heights are not very high, limiting the application to low hydro schemes. The available flow for operation of hydro power plant is seasonal which interrupted for many months of a year.

A variety of biomass resources are available in Bihar such as domestic waste, by product from agricultural production such as rice and wheat husks. This option is most attractive as it can coexist with production of much needed food products, and the largest waste product from the rural area of Bihar is agricultural waste, rather than domestic waste

ASSESSMENT OF SYSTEM DEMAND The absolute minimum demand scenario assumes that every household is equipped with two CFL lights. The service is assumed to have limited availability being 5 6 hours of electricity supply service per day. Once there is access to electricity demand will certainly grow. It was assumed that have more or less the same consumption pattern.


Cost of technology

Generation Type Solar Wind

Capital cost 1.608(LK)kwh

O $ M cost 1500 kwh


Bio mass


The Projected village was extensively surveyed to arrive at the best possible technology Option for basic electrification. Biomass based power plant was ruled out both on the basis .Of degree of difficulty in collecting the dung as well as the non-uniform distribution of cattle (often put for sale) amongst the community. There is a good sunshine (4.89kWh/m2/day) at the site, which would have made it an ideal choice for the use of a solar PV based village powers system. However, its high initial capital cost swung the balance in the favor of a biomass energy based power system commonly known as a biomass gasifier. Accordingly, biomass technology was deemed as a best possible alternative for this village having a forest covers thousands of Ha. There is a grazing land more than 100 Ha , which has been encroached upon by the villagers for agricultural purposes. Cluster of villages has an annual surplus availability of woody biomass in the range of thousands of tones enough to keep a biomass gasifier system of 650 kWe going on for a daily operation of 4-6 hours. The dry and fallen wood is found year round excepting during the rainy season.


The biomass Gasifier technology Biomass gasification is a process of converting solid biomass fuel (like wood) into a combustible gas. It is commonly known as the producer gas, which results due to a series of thermo-chemical reactions. The gas is a low heating value fuel, with a calorific value of 1000-1200 kcal/Nm3. Nearly 2.5-3.0 Nm3 of gas can be derived via the gasification of about 1 kg. of air-dried biomass. It can then be used in an energy-efficient manner with a fairly good control mechanism to meet thermal energy demands in ovens/burners, boilers or kilns etc. However, the gas can be cooled, cleaned and fed to an engine to operate either on dual fuel or in a 100% producer gas mode to produce some useful electricity. The biomass gasifier with 100% producer gas engine is a proven and eco-friendly technology and thus carbon neutral. Further, the ash content of biomass as wood blocks (5 cm cube) is less than 0.5 %. It is also possible to use the unburnt charcoal taken out from the gasifier for any commercial purpose.

In recent years, the rationale has been further by the environmental imperative. Local and regional environmental problems associated with the generation of conventional energy have provided a strong argument for enhancing the role of renewable within the broad energy development plans of the country. More recently, the Kyoto Protocol, agreed at the conference of parties to the framework convention to climate change, in December, 1997, adds a global perspective to the environmental imperative. It has been directed, last decadeand- a half, for promotion of wind, biomass, and solar energy technologies (and of other RETs) in the Indian energy-economy. This has provided a great deal of empirical knowledge about strategies for successful commercialized. Future of biomass-sustainable energy: Unlike coal, oil and natural gas, whose reserves are limited, sources like the sun, wind, and vegetative waste can be used to generate energy in a sustainable way. The suns energy can be used to generate electricity, and heat as well as cool building cheaply over a long period of time without creating pollution. The wind energy is also used to generate electricity. Biogas plants can utilize human and animal waste to produce fuel for cooking and other uses, reducing the dependence on fossil fuels. It is estimated that the country has potential of 100,000 MW renewable energy (Padmanabhan, 1999). However, the share of renewable energy sources is 1378 MW, a mere 1.5% (exclusive of Hydro-power) of the total grid power generating capacity in the country (90,00 MW). It has often been pointed out that an important reason for the slow rate of diffusion of renewable energy technologies is the high front-end cost. This will no longer be there as the fossil fuel is expected to reach their maximum potential and their prices will become higher than the renewable energy options. It is expected that the setting of clean technology in the coming years will facilitate channeling of funds from the developed countries to support renewable energy sources development in developing countries due to issues, such as, climate change becoming urgent. Thus finance is no longer a 69

constraint. Renewable source of energy other than hydropower e.g. solar, wind and geothermal sources, currently provide only a small fraction of global energy use. The most prevalent source of energy is biomass. Biomass furls include wood, logging wastes and sawdust, animal dung, and vegetable matter consisting of glass, leave, crop residues and agricultural waste. Globally, biomass fuels accounts for 12 % of total energy requirements. In developing countries, however, biomass accounts for 36% of all energy used smith (1987) and De Coninth et al. (1985). In India, the biomass programmes are mainly targeted to meet the needs of rural and remote areas and have helped in reaching electricity to the interior un-reached section of the population. One of the reasons for slowdown in installation/commissioning of biomass-renewable energy generation is due to inadequacy of the input material. To overcome this, attempts are being made to use alternatives to cattle dung like poultry dropping, sericulture waste, press mud, wastes from sago industry, bagasse from sugar mills and like wise. Since biomass based energy system can help to reduce carbon-dioxide emissions, a project on carbon emission reduction through biomass energy for rural India, prepared by the center for application of science and technology in rural areas, in the Indian Institute of Science, is proposed to be posed to UNDP/GEF for multilateral funding. Estimates indicates that if all forms of biomass were taken into account, their carbon dioxide emission reduction potential would be equivalent to about 50 million tones by the year 2010 (Sharma, 1999). But this will only be possible once biomass is used as a source of energy. Mere afforestation may not balance out excess carbon for an extended period of time. Because uncontrolled burning and decay of the mature plantations will bring back a sustainable quantity of carbon, back into circulation. The increased production of carbon dioxide in developing countries should be offset by greater energy conservation. Efforts to make renewable sources of energy less costly and more widely available should continue: practicable methods should be developed for waste incineration as a energy in the table.

*) - Modernisation of Biomass Technology in India Biomass as a technology has slowly built up in India in recent times. A decade of experience with modern biomass technologies for thermal, motive power and electricity generation applications exists in India. Gasifier technology has penetrated the applications such as village electrification, captive power generation and process heat generation in industries producing biomass waste. Over 1600 gasifier systems, having 16 MW total capacity, have generated 42 million Kilo Watt hour (KWh) of electricity, replacing 8.8 million litres of oil annually (CMIE, 1996). An important aspect of small gasifier technology in India is the development of local manufacturing base. The large sized gasifier based power technologies are at R&D and pilot demonstration stage. The thrust of the biomass power programme is now on the grid connected megawatt scale power generation with multiple biomass materials such as rice straw, rice husk, bagasse, wood waste, wood, wild bushes and paper mill waste. Nearly 55 MW of grid connected biomass power capacity is commissioned and another 90 MW capacity is under construction. Enhanced scale has improved


economics as well as the technology of biomass power generation. Technology improvement is also derived from joint ventures of Indian firms with leading international manufacturers of turbines and electronic governors. Four gasifier Action Research Centers (ARCs) located within different national institutions and supported by the MNES have developed twelve gasifier models, ranging from 3.5 to 100 KW. Two co-generation projects (3 MW surplus power capacity) in sugar mills and one rice paddy straw based power project (10 MW) werecommissioned. While the co-generation projects are successfully operated, the 10 MW rice straw based power project completed in 1992 ran into technological problems and is closed since last two years due to want of suitable raw material. A rice husk based co-generation plant of 10.5 MW capacity installed by a private rice processing firm in Punjab and commissioned in 1991 faced problems such as unavailability of critical spares of an imported turbine and uneconomical tariffs from the state utility despite power shortage in the state (Ravindranath and Hall, 1995). The rapid escalation in the price of rice husk and low capacity utilization added to the cost making the operation uneconomical. The experiences with R&D and pilot project suggest the need for considerable technological and institutional improvements to make biomass energy competitive. The future of modern biomass power programme rests on its competitive ability vis--vis other centralized electricity generation technologies. Policies for realizing biomass electric power potential through modern technologies under competitive dynamics has a recent origin in India. The biomass electricity programme took shape after MNES appointed the task force in 1993 and recommended the thrust on bagasse based cogeneration. The focus of modern biomass programme is on the cogeneration, especially in sugar industry. A cogeneration potential of 17,000 MW power is identified, with 6000 MW in sugar industry alone (Rajan, 1995). Programme for biomass combustion based power has even more recent origin. It began in late 1994 as a Pilot Programme launched with approval of two 5 MW projects. Interest subsidy programmes on the lines of that forthe bagasse based co-generation was extended in 1995. The programme also initiated a grid connected biomass gasification R&D-cum-Demonstration project of 500 Kilo Watt (KW) capacity. A decentralized electricity generation programme initiated in 1995 provided support for total of 10 to 15 MW of small decentralized projects aimed at energy self sufficiency in electricity deficient rural locales. The programme aims to utilize some of the 350 million tons of agricultural and agro-industrial residues produced annually in India. The cost of electricity generation from these plants are anticipated to be quite competitive at Rs. 1.8 per KWh. Modern biomass supply has to be driven by the dynamics of energy market. Supply of biomass at a competitive cost can be ensured only with a highly efficient biomass production system. Productivity of crops and trees depend critically on agroclimatic factors. To enhance biomass productivity, the MNES is supporting nine Biomass Research Centers (BRCs) in nine (of the fourteen) different agroclimatic zones in India with an aim to develop packages of practices of fast growing, high yielding and short rotation (5-6 years) fuelwood tree species for the degraded waste lands in these zones. Some centers have existed for over a decade. Packages of practices for 36 promising species are prepared. Biomass yield of up to 36.8 tons per hectare per year is reported (Chaturvedi, 1993) from some promising fuel-wood species. Since the knowledge of these package of practices has remained limited within the


research circles, their benefits remains to be realized. The mean productivity of farm forestry nationally is very low at 4.2 tons per hectare per year (Ravindranath and Hall, 1995). Exploitation of bioenergy potential is vitally linked to the adequate land supply. While the use of cultivable crop land for fuel remains controversial under the "food versus fuel" debate, there exists a vast supply of degraded land which is available cheaply for fuel-wood plantations. The estimates of degraded land vary from 66 million hectares (Ministry of Agriculture, 1992) to 130 million hectares (SPDW, 1984). With improved biomass productivity and efficient energy conversion, it is feasible to sustain a significant share of biomass in total energy use in India by utilizing a fraction of this degraded land for biomass plantation. *) - Biomass Pollution Control Strategies The combusting of unprocessed biomass dominates rural energy combustion in the developing world and may also be important in urban communities. As many as two billion people, particularly women and children, may be exposed to indoor pollution resulting from the use of an open fire for cooking and heating, with inadequate ventilation. Concentration of particulates and oxides of sulphur and nitrogen substantially exceed proposed health norms. The most important effects are respiratory, ranging from predisposition to acute infections in children to chronic obstructive pulmonary disease in adults. As many as 700 million women in developing countries may be at risk of developing such as serious disease. In addition to these direct effects on health, the environmental degradation resulting from the unsustainable use of biomass may compromise the food producing capabilities of rural communities (WHO, 1992). Mitigation of indoor air-pollution can be achieved by the use of processed biomass (charcoal), biogas, or methanol and the adoption of simple ventilation measures and improved stoves. Hopefully, there will be a discernible trend in developing countries together with the extension of local processing technologies. The introduction of appropriate species of vegetation, to provide a renewable source of biomass should be planned as a part of environmentally sound development Kazuhisa Miyamoto (1997). *) - Conclusions & Recommendations Wider uses of improved technologies for the local conversion of raw biomass into better, more efficient types of fuel, such as biogas, are needed through out the developing world. This results in little pollution if equipment is properly maintained, and contributes to a cleaner indoor environment. It will also be necessary to promote renewal of biomass vegetation, in order to prevent environmental degradation with loss of agricultural land essential for the survival of the rural communities. Renewal of biomass also promotes a balance between carbon dioxide productions during fuel combustion and its uptake by the biomass vegetation during photosynthesis. National programme on biomass gasifiers The Ministry of New and Renewable Energy (MNRE) is implementing a National Biomass Gasifier Programme for mechanical, electrical, thermal heating applications and village electrification since mid nineties. Various types of financial incentives are


available for installation of gasifier systems under this programme. Biomass gasifiers in the capacity range of 5 kW to 1 MWe electric capacity have been developed indigenously and are being manufactured by various manufacturers in the country. The systems being proposed for village electrification applications are based on 100% producer gas, which is a recent technological development. The biomass gasification systems can be used for a diverse range of applications in the rural areas. Apart from use as a cooking fuel and for electricity generation, the gas can be used for heating applications in village industries. The estimated cost of village electrification projects with biomass gasification systems is about Rs. 50,000/- to Rs. 80,000/- per kWe in capacity range of 5 KW to 50 KW including the cost of land, civil works, distribution lines etc. Biomass Gasifiers in India are being made in capacities ranging from a few kWs to MW.

System capacity
There are around 100 households availing the benefit of biomass based lighting. Two light bulbs of 40 W each are being used for indoor lighting in each household. These lights remain operational for about 4 hours (6-10 p.m.) on a daily basis. Five nos. of street lights also lit up a few vital entry and exit points within the village at night. Such lights also stay on for about 4 hours daily. The plant capacity is around 8.20 kWe as per the following breakup:

Number of households 100 Total domestic lighting load (@ 80 W per household) 8.0 kW Street lighting loads 5 No.s (40 W each) 0.2 kW Total connected load 8.20 kWe The system capacity was scaled up to 10 kWe taking into account the near-term electricity demand as also the associated technical losses etc. A well performing producer gas engine offers a distinct cost advantage at Gaya since it does not use diesel. However what is really needed is an assured supply of biomass.Table below gives a birds eye view of Projected village from several important considerations.


Name of the Village Distance from the nearest roadhead Distance from block office Distance from electrical substation/ 11 kV line Distance from nearest powerhouse Total number of households Total population Number of hamlets/dalit bastis Community facilities available Commercial establishments Primary Occupation Important crops Total Household load Total Street lighting load

Commercial load Industrial load Community load


Daily hours of use (lighting) Daily hours of use (commercial load)proposed Technology option considered Installed System capacity

Management of funds


Raw feedstock availability The wood collected for the purpose contains nearly 25-30% of moisture. It is removed prior to being loaded in the biomass gasifier system through a sun drying system. Total quantity of firewood used per day is around 60 kg to ensure 4 hours of daily operation. Specific fuel consumption is nearly 1.5 kgs of wood per unit of electricity generated at the site. Buffer stock of woody biomass is maintained for about 4-7 days at a time in a specially created shed at a distance of just 0.5 km. from the plant location. Wood is moved from that point to the system via a trolley mounted arrangement.


Even when demand exist and economically DDG project based on renewable energy failed and


success of pilot project was rarely replicated. This section identifies and categorized the relevant barriers. Existing literature has explores technological, financial and broader institutional barriers to small scale renewable technology dissemination. It has less often focused on the role of organisational structures that determine ownership, management, local participation and conflict with the prevailing regulatory environment. Barrier is divided into three parts initial barriers, organisational barriers and structural barriers. The majority of the projects surveyed represents pilot or early implementation initiatives and as such encountered a range of challenges we might characterize as initial barriers. These barriers, although significant and potentially critical, represent problems that can be overcome by organisational learning, capacity building or simply by redesign of subsequent project strategies. Organisational barriers are often problems that have been overcome in early projects, but learning alone will not eliminate them. By the nature of project implementation, first movers may possess the right combination of individuals, organisational capacity and other leadership traits that mitigate the effect of the potential challenges. Subsequent large scale replication, whilst continuing to face these same challenges, has to be able to succeed even without exceptionally strong local leadership and find organisational structures that are less dependent on exceptional individuals to take local or regional leadership.

Structural barriers take the form of those challenges faced by projects that arise from fundamental problems in the regulatory and institutional environment. Examples include unfavourable licensing constraints or problematic tax and subsidy regimes. These barriers will likely continue to pose a threat to project replication unless concrete steps are taken to reduce or remove them through various regulatory or policy actions.

Initial Barriers
The most significant initial barrier is the appropriate technology choice. Where organizations have had limited experience with project implementation, or are using new technologies, equipment failures, resource availability problems or other critical technology issues may threaten the longerterm sustainability of the project. Few implementing organizations have yet demonstrated effective


methods for handling technology risk, short of simply avoiding locations that are not suitable for their favoured technology. Where state nodal agencies of MNRE have been charged with remote rural electrification, they typically revert to solar lanterns.

In addition, establishing village power plants is associated with significant financial and organizational risks. Unproven technology, unpredictable local conditions and uncertainty about the capacity of the organization to deliver, all contribute to the risk of failure. Such project risks can be managed effectively by replicating successful approaches and learning from failures. Increasingly organizations are moving beyond pilot phase programmes with effective strategies in place. For initial projects, financing can represent the single largest barrier to entry. High capital costs of DDG projects exclude many smaller NGOs from considering such initiatives and government subsidies are often hard to access. Where financing is available, it is sometimes restrictive.

Organizational Barriers
Plant load factor plays a critical role in determining economic viability of DDG technologies. The load factor is largely dependent on organizational approaches to distribution and supply ensuring adequate load and where relevant bio-fuel supply for the system. Where organizational approaches lack the incentive to increase or maximize load, by adding additional customers, the viability of the project may be threatened. Where measures are taken to help communities increase load through income generating activity or acquiring modern appliances, the project may succeed with increased benefit for local people. Cooperatives and self-help groups may be suitable local bodies to work in partnership with implementing agents to ensure engagement by local households and businesses, whilst also highlighting the opportunities created by a reliable electricity supply.

Local cooperatives, NGOs, Village Energy Committees and Panchayats can help ensure the reliable collection of bills and timely repairs and maintenance. Whereas past programmes implemented by outside organizations without such local participation often saw subsequent disuse and petty disputes emerging, the increasingly community oriented approach to ownership and management has helped circumvent these issues.


Typically government projects are able to avoid the regulatory challenges that can constrain nongovernment organizations; however such top-down approaches can incur organizational and participatory challenges of their own, with regards localized management and community participation. Limited organizational capacity to engage with local people combined with retained ownership that offers few incentives for cooperation of local people can contribute to both underutilization and disuse of power plants. Although government projects do not face the same hard budget constraints as other projects, low plant load factor threatens long term viability of such projects. Working alongside a local NGO, Panchayat, cooperative or self help group can help establish sufficient demand for power to thus ensure sufficient PLF for viable plant operation.

Reliable resource availability or fuel supply can be critical for success of DDG projects. Local knowledge of seasonal variation or farming patterns can be utilized to identify future problems. For biomass gasification, successful projects, Have demonstrated effective energy plantations utilizing village waste land. The addition of cash crop into the community can also help offset the risk associated with other food crops for market, providing a stable price for gasifier fuels such as Daicha, Ipomoea, rice husk and other crop residuals. Establishing effective fuel supply or drawing up fuels supply agreements with the local community requires leadership or experience. Successful projects have demonstrated how reliable fuel supply can be ensured however lessons must be learnt from previous mistakes. Caution should be exercised with regards proximity of neighboring biomass projects and upward pressure on food crop prices, both of which can be avoided with utilization of waste land and dedicated plantations.

Structural Barriers
Whilst pilot projects have demonstrated the potential contribution from DDG renewable technologies, large scale deployment is limited by numerous structural barriers. Tax, subsidy and regulatory regimes can be used to accelerate effective rural electrification; however their effect at present remains a constraining one. State actors retain a monopoly on generous central subsidies, whilst non-state actors struggle to secure financing. Credit constraints exist under a risk-averse


commercial banking sector and are reinforced by a lack of demonstrated medium term successes that could build confidence and capacity for lending. Whilst several international support mechanisms such as the UNFCC Clean Development Mechanism have begun to support small-scale non-governmental projects, the transactions costs associated with applications make individual submissions prohibitive.

The prevailing Indian approach to rural electrification remains highly centralized and a target-driven supply push strategy; this can impede the contribution from non-governmental groups, local bodies and the private sector. Where support does exist, incentives and financial grants are often misused or misdirected hindering implementing organizations or constraining technology choice. Subsidies that are currently tied to implementation rather than project performance have resulted in limited viability and sustainability of many projects.

Whilst government reports have recognized the potential role for DDG in meeting Indias electrification challenges, their recommendations (Gokak Committee 2003) and even policy provisions (Electricity Act 2003) have failed to see changes at the state level. There continue to exist severe regulatory barriers to rural generation and distribution; existing legislation lacks clarity and open to alternative interpretation and rent-seeking with significant bureaucratic delays and barriers (corruption, coop licensing).

The Business Model for Gaya village system

IT is quite apt to enunciate a properly functional business model for this specific mode of power generation, which can translate into significant gains for all possible stakeholders. Following three of models make good business sense: Technical Model Technical Financial Social


Seemingly, it is the most vital component of a decentralized distributed generation system. Any inexactness in devising a site specific technical model can lead to plethora of operational problems. A properly formulated technical model was put into action, the immediate consequence of which is a smoothly functioning biomass power system at Gaya. Following few are the key linkages of a successful technical model: Identification of village (s) Feasibility study Choice of technology Constitution of a VEC Land allocation by VEC Award of annual maintenance contract Raising dedicated plantation Upgradation of technology

Social Model The empowerment of the village community is quite crucial to an overall success of a power system like at Gaya. It instills in them a sense of purpose and belonging to care for the system upkeep in no uncertain terms. Of special significance is the role intended/played by a designated body better known as the Village Energy Committee (VEC). VEC is as good as a cooperative society and exercises control over the following few parameters of immediate relevance to the community and system operation as a whole: Monthly Electricity charges initial contribution from the beneficiaries fuel supply arrangement security of the plant


Penetration of DDG
As on 30 April 2010, 16.1 per cent5 of Indias villages were still unelectrified. These villages are expected to be electrified through a mix of GE and DDG. The MNRE has undertaken the remote village electrification program me targeted at electrifying un-electrified remote census villages and remote un-electrified hamlets of electrified census villages where grid connectivity is either not feasible or not cost-effective. A total of 5259 remote villages/hamlets were identified in 2001 for rolling out the project, out of which 3332 villages have already been covered .The plan is to electrify 296 villages through distributed generation technologies of biomass gasification and small hydro.

Rural Energy Synonymous with Rural Electrification Over the years, planners have regarded delivery of rural energy services as synonymous with rural electrification. This is reflected by the fact that once a village has been declared electrified, the energy needs of the village are deemed to have been met, regardless of whether electricity is available to that village and whether the village rural electrification infrastructure is operational throughout the year. At the same time, energy needs related to cooking, water extraction, and space heating have not been look date as an integral component of this energization program and thus are developed as disjointed and specific programs catering to a particular end use.

Credit Access to Poor The rural poor, owing to limited cash flows have limited options for investing in clean energy technologies like solar home lighting systems. In light of this, access to credit becomes crucial for facilitating access to clean energy technologies, especially for relatively capital intensive DDG systems. Owing to the consumptive nature of energy, cumbersome procedures involved in accessing formal credit and the reluctance of formal banking institutions to provide credit to the poor for meeting their household energy needs, especially in the remote areas, the poor have remained outside the mainstream, especially in terms of accessing clean technologies like solar home lighting systems, biogas plants, etc. The poor are unable to provide the required guarantees


and hence, financial institutions do not develop packages for decentralized rural energy programmes.

Lack of Adequate Information/Data for Market Development Limited data and information exists for rural energy entrepreneurs looking to enter the clean energy DDG market. However, due to the fact that a number of government agencies collect data at the rural level that focus on different aspects of energy, including resource availability,

Supply potential, and to a limited extent demand assessment, this data is neither shared nor collated into a single database for an informed decision-making system either by the government or private sector.

Lack of Research and Development (Including Customization) in Technology

In spite of the need, sufficient emphasis has not been laid on technology development in the national level energy emphasis on the necessity of designing devices as per the needs of the community and this is reflected in the absence of a mechanism that can take and incorporate feedback for assessing R&D requirements from the community in the planning process. For instance, the kerosene devices used in rural areas for lighting purposes are technically archaic in nature. This not only results in higher kerosene consumption, but also in higher emissions of smoke and poor luminosity.

Lack of Adequate Awareness about RETs in Rural India The use of RETs and their advantages are still not widely known in rural India. As a result most rural folk are not aware of these technologies and their advantages. Furthermore, the high upfront cost of these technology options make RE-based DDG options out of the reach of the Common rural consumer unless backed up with some support and access to financing.

Lack of Confidence in RETs in Rural India


Even in areas where the rural consumers are aware of these technologies, that is, in areas where pilot projects or large scale programmes have been implemented, the limited Success of these projects/programmes has resulted in the consumers often being wary of investing in these technologies due to their past failures. The rural poor have a very Limited risk-taking capacity and unless completely certain as to the products sustainability and viability, would not Take the risk of investing in it.

Risks Associated with Developing a Marketing Enterprise in RE Technologies Entrepreneurs face issues like competition from highly subsidized yet unsustainable RE products being marketed by the state Renewable Energy Development Authorities (IREDA) under the MNRE programmes. These government programmes are often seen as another target to be achieved, and as a result, the product development and customization to local needs, sustenance, after sales services, etc., are poor. Besides, the marketing skills and Knowledge of entrepreneurs with regard to RETs are often not very developed. Entrepreneurs face large pre investment risks associated with the costs of marketing, contracting, and information collection.

One of the key requirements for entrepreneurs includes upfront investment in the supply chain to ensure smooth delivery of services. For instance, the availability of spares in the local market or trained mechanics, who undertake repairs and change installations, can contribute to sustained delivery of services. Small-scale local entrepreneurs may also need to be made aware of the unexploited market potential in the sector and be provided with initial assistance in market research and development. In order to encourage such innovation and ownership, micro-credit schemes have supported the development of local capacities to plan, execute, maintain, and finance rural infrastructure.

Willingness to Pay Successful deployment of rural energy interventions is contingent upon widespread willingness to pay amongst rural households and energy users. Willingness to pay in turn is contingent upon


the following broad conditions: Availability and access to credit. Image and brand status of service/product provider. Earlier experience with such products. Cost comparison with incumbent energy sourcebreak up between up-front costs and variable costs. Impact on livelihood. Life of the product and daily operability of the product. Repair and maintenance of the product and the availability of spare parts and service network.

These, however, are quite likely to be only perceived barriers. It has been seen that electricity consumption has high value for rural households and where access exists, willingness to pay is high, even amongst poorer households. Consumers are generally willing to pay significantly more for shorter outages and better-quality supply even in grid connected areas. This is also confirmed by observations that in remote and off -grid areas consumers are willing to pay a premium for electricity connections, either from diesel generators or for non-conventional connections.

Financial Viability

Financing is a major issue for DDG systems based on renewable energy. The major components related to cost are capital cost and operation and maintenance cost. The relatively high capital cost results in the overall high cost of generation related to these systems. Owing to the lower income levels, the rural households are generally able to meet the operational costs and some part of the capital cost related to the DDG systems. The relatively high capital expenditure requires the government to provide Support in the form of capital subsidy/grant to render the DDG systems financial viability. The involvement of the local community stakes in a way enhances the viability of the project.


Limited Site Specific Site Options The DDG-based renewable energy projects are site specific and may face issues related to limited options for technology selection owing to its dependence on the availability of the locally available renewable energy resource and dispersed population. Further, low levels of population Density may offer low levels of demand, resulting in short hours of operation of the system thereby impacting the project viability.

This report work has achieved the following: 1. Found an alternative to enhance distribution networks in rural areas. 2. The cost-benefit analysis of the system is was done. The ideal ratio range between the biomass and solar is also calculated on the basis of financial tools, baseline surveys in the given 19 villages of Gaya, Bihar which is (65-70%) Solar and (3035%) Biomass based energy. These attributes are of prime importance and can be a useful add-on. These are therefore suggested as future work. The pricing, installation and distribution of power is based on the uneven features of villages covered and the preferences, response of the residents. Levels of education, poverty are also important factor in pricing slabs which vary from Rs. 40 to Rs. 150 per household. This work presents a scheme that is useful in enhancing the present schemes for operation of REDG-integrated distribution networks. In an attempt to make this tool more significantly viable, the robustness of the scheme should be further examined. It is recommended that this scheme be applied to a larger distribution system of this topology. Considerations for other topologies of distribution system (i.e. loop, etc) should also be developed. The advancement of this thesis in the future involves the consideration of two features: The advancement of the performance assessment tool to include a more expansive set of indices for the reliability assessment of the system as well as a cost benefit analysis scheme for the evaluation of the impact of the integrated REDG on the system. The development of a cost-benefit analysis component which is dedicated to the determining the contribution.


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