GKC Oneworld Community Solar Power Plant Jhansi

Community Solar Power Plant Project
- Jhansi
January 2011
Governance Knowledge Centre

Promoted by Department of Administrative Reforms
and Public Grievances
Ministry of Personnel, Public Grievances and Pensions,
Government of India
http://indiagovernance.gov.in/
Researched and Documented by
OneWorld Foundation India

www.oneworld.net.in
owsa@oneworld.net

Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
Case Study
Environmental Sustainability
Community Solar
olar Power Plant Project Jhansi
January 2011
TRANSPARENCY AND ACCOUNTABILITY

Table of Contents
EXECUTIVE SUMMARY ................................................................................................

................................
......................................................... 2
BACKGROUND ................................................................................................................................
................................
........................................ 3
OBJECTIVE ................................................................................................................................
................................
................................................ 4
WORKING DESIGN ................................................................................................
................................
................................................................. 4
FINANCIAL OPERATIONS................................................................................................
................................
.................................................... 7
METHODOLOGY ................................................................................................................................
................................
..................................... 8
KEY STAKEHOLDERS ................................................................................................
.................................................. 8
LESSONS LEARNED................................................................................................
................................
................................................................ 9
LOOKING AHEAD ................................................................................................
................................
................................................................ 11
REFERENCES ................................................................................................................................
................................
.......................................... 11
1
Researched and documented by

Government of India
Case Study
Community Solar
January 2011

EXECUTIVE SUMMARY
Rural electrification still remains an under addressed issue in India. Most villages are too small
to be covered under State electricity schemes and in such circumstances, these villages remain
unlit. Access to electricity is of utmost importance as it is a basic building block in the
development of rural areas.
In January 2009, Scatec Solar, a Norwegian company working in the field of solar solutions,
partnered with Development Alternatives(DA), an Indian non profit organisation working in
the field of creating
reating sustainable livelihoods, to pilot the Community Solar Power Plant(CSPP)
project in two villages: Rampura and Gopalpura in Jhansi district, Uttar Pradesh. The project
leverages solar technology and participatory processes to build power plants for electrifying
e
the villages.
The first step was to create the Village Energy Committee (VEC) which would include
members from all sectors of the village community. DA played the role of project facilitator and
devised innovative mechanisms to mobilise the villagers
villagers and train the VEC so that ultimately,
plant operations and maintenance would be locally owned. Sratec Solar funded the project and
aided with technical expertise.
The CSPP project has changed the lives of the villagers. They can now use electricity
electric
for
entrepreneurial activities, students can study for extra time, the streets are well lit and safe, and
women can engage in extra income generating activities like sewing.
One of the key features of the project is its unique consumption based tariff structure which
simply follows the principle of pay according to your usage. Villagers willingly pay the
variable cost which depends on the units they consume. The CSPP model provides
p
a possible
solution to the problem of rural electrification and can be replicated across villages with
modifications according to local conditions.
This document attempts to capture the working design of the project and highlight its unique
approach
ach in hopes of assisting in the replication process.
2

Government of India
Case Study
Community Solar
January 2011
BACKGROUND
RURAL ELECTRIFICATION IN INDIA
Viable and efficient electricity is a crucial public service. Availability of electricity can increase
productivity in agriculture, improve delivery of healthcare and education, ensure access to
various means of communication (radio, television etc.), generate greater employment
opportunities and result in the overall development of a region. Unfortunately, 44 percent of
rural India still lacks access to electricity1Almost 1, 25,000 villages across the country are not
connected to power grids. This reflects a huge gap in demand and supply of energy and the
inability of current efforts to provide reliable and affordable electricity to the rural poor.
COMMUNITY
UNITY SOLAR POWER PLANT PROJECTPROJECT JHANSI
The above situation points to the need for use of alternate sources of energy with which a
sound model for rural electrification can be designed. One initiative addressing this issue is the
Community Solar Power Plant
nt (CSPP) project in Jhansi District of UP. The project is run by the
Development Alternatives (DA) Group, an Indian non-profit
non profit organisation that has been
working in the field of sustainable livelihoods for the past 25 years.
Scatec Solar, a Norwegian energy
energy company, was keen to harness their solar energy work
towards electrifying rural Indian and hence, they determined to collaborate with DA.
The pilot was launched in two villages: Rampura and Gopalpura. Both villages have
approximately 70 households that
that largely engage in agricultural work. Prior to the
establishment of the solar plants, both of these villages were deprived of electricity as they had
been left out of all state government electrification schemes. In such a situation, kerosene lamps
were used for household lighting.
The solar plants were inaugurated in January 2009. This collaborative venture involving
grassroots facilitation by DA, financial support from Scatec Solar, and technical support from
the Bergen Group India, has illustrated how
how alternative electricity can change lives in rural
India.
1 MINISTRY OF POWER SURVEY 2005

Government of India
Case Study
Community Solar
January 2011

OBJECTIVE
The objective of the CSPP project is to:
test
est the technological and commercial viability of using solar power for providing
electricity in rural areas
establish a community managed model of operation and revenue generation
build a working model of community based solar plants that can be replicated in other
villages across India
WORKING DESIGN
A Build-Own-Operate-Transfer
Transfer (BOOT) model was used with
with the ultimate goal of a village
owned and maintained power plant.
CREATING AN ENABLING ENVIRONMENT
The first step was to create the Village Energy Committee (VEC). Efforts were taken to ensure
that all sectors of the village community, particularly women,
women, were represented in the VEC.
The committee is responsible for the construction, operation and maintenance of the power
plant. Initially, the major task was to mobilise villagers and clear up their misconceptions
regarding solar energy. DA, who already had a base in the village through its previous projects,
played a prominent role in this process.
Various workshops were organised to build awareness about the environmental, economic and
social benefits of solar power. Meetings were held with local government
government agencies, district
administration and the villagers to generate an open dialogue platform on the topic. An
innovative game of saap sidhi
sidhi (snakes and ladders) was introduced to explain how taking
certain positive measures, like the use of solar electricity,
electricity, could help village life move up the
ladder.
CAPACITY BUILDING OF VEC
A bank account was opened in the name of the VEC for maintaining its finances. The bank
account also acted as a social instrument for developing trust amongst the villagers by directly
involving them in the financial process. Through the account, the community
commu
became aware of
the status of their funds at any given time; hence, mitigating the possibility of misuse of
Case Study

Government of India
Community Solar
January 2011
revenue. All VEC members are trained in various responsibilities such as cleaning of PV
modules, operation, preventative maintenance, data collection,
collection, meter reading at the household
level, bill preparation and distribution, revenue collection, and accounting. It took eight months
to train the VEC in power plant operations.
BUILDING THE PLANT
TECHNICAL OPERATIONS
DA conducted a survey to estimate
estimate the electricity load requirements of the villagers. Based on
the survey results of present and potential demand, the solar plants were designed and land
was secured for the plants with the help of the
village panchayat.
Two
different
technologies
were
adopted in
Rampura and Gopalpura. The Rampura plant uses

crystalline silicon solar plants, whereas amorphous
silicon thin film modules have been used in
Gopalpura. The plant capacity in Rampura and
Gopalpura is 8.7 and 9 kWp, respectively. Similarly,
two different distribution models have been tested
Source: Scatec Solar
in the villages. Rampura supplies power to individual homes

through a 0.75 km long mini-grid,
mini
whereas
eas Gopalpura has a
centralised charging hub from where villagers can charge their batteries, lanterns (provided
through the project fund), mobile phones and other chargeable gadgets. In terms of
technological efficacy and community response, the Rampura plant was found to be a better
model than the one in Gopalpura.
5
Case Study

Government of India
Community Solar
January 2011

THE RAMPURA MODEL (DESIGNED AND BUILT BY
B BERGEN INDIA) CONSISTS OF:
A POLY-CRYSTALLINE SOLAR PANEL

PA
HAVING
3 STRINGS OF 20 MODULES EACH; EACH

50 CELLS AND HAS THE CAPACITY
PACITY TO GENERATE 145 WP. THE
TOTAL PANEL HAS THE CAPACITY TO GENERATE 8KWP.
MODULE CONSISTS OF
0.75 KM LONG MINI DISTRIB

DISTRIBUTION GRID TO SUPPLY 220 V ALTERNATE
ALTERNA
CURRENT FOR
DOMESTIC AND COMMUNITY
COMMUNI
USAGE.
BATTERY-BACK UP TO SECURE
3 DAYS OF ELECTRICITY SUPPLY IN THE ABSENCE

ABSENC OF
SUNLIGHT.
CAPABLE OF POWERING 13 STREET LIGHTS
PROVISION TO SUPPLY 220 V AC ELECTRICITY FOR ENTERPRISE LOAD UP TO

T 3 HP
Source: Light at night: Community Solar Power Plant. UNDP
Source: Scatec Solar
6

Government of India
Case Study
Community Solar
January 2011

LINKING THE PLANT TO HOUSEHOLDS IN RAMPURA
A specially designed application form was collected from interested villagers before connecting
their house to the mini grid. The terms and conditions, designed through a participatory
planning process, particularly the tariff scheme (see next section), was explained to the villagers
and their consent was sought
ought out for customising internal wiring within their houses. High
quality wires were used in every household to ensure safety.
The cost of internal wiring was made transparent to the villagers beforehand as they were to
meet these expenses on their own. A contractor for internal wiring was identified and DA
facilitated and ensured that the process was carried out smoothly. Villagers were encouraged to
participate in the construction of the plant so that the earnings they made through labour could
be used to meet the expenses of internal wiring.
FINANCIAL OPERATIONS
The cost of commissioning the community solar power plant came to 29.5 lakh. This included
the cost of civil works, cables, battery, power controlling unit, and setting up the mini grid.
Individual households had to bear the initial cost for necessary infrastructure
infrastructure such as electrical
wiring. The VEC collected Rs. 500 as a security deposit from each household seeking the
electricity connection. Individual households have to pay monthly service charges to the VEC.
The electricity tariff was based on what villagers
villagers were paying for other sources of energy
(kerosene and batteries). With the support of the VEC and Scatec Solar, Development
Alternatives developed and implemented a tariff structure comprised of a fixed and variable
charge; the fixed charge was to recover the replacement cost of the battery, while the variable
charge was for daily operation and management. At the start, the fixed monthly charge for a
CFL bulb, fan, and TV was Rs 20, Rs 80 and Rs 90 respectively; the variable charge was Rs 4.50
per unit.
nit. Although these tariffs worked initially, villagers gradually started consuming more
energy by taking up additional lights and fans. The result was an imbalance in demand and
supply. In order to trace this imbalance and inculcate a sense of effective utilisation
u
of energy, it
was collectively decided to introduce a
7

Government of India
Case Study
Community Solar
January 2011

CONSUMPTION BASED TARIFF MODEL
Consumption (unit/month)
Fixed tariff
Variable tariff
(Rs./month
(Rs./ unit)
20
0-5
Rs. 4.5 per unit

90
5-10
Rs.22.5
5.5
per
unit
6.5
per
unit
thereafter
160
10 onwards
Rs.
50
thereafter
Note: Villagers pay an additional charge (Rs 10 / month / household) per street light
The revised tariff structure promotes efficient usage of electricity and allows CSPP to be
financially sustainable in operations and maintenance. A chart was prepared to explain the
monthly consumption of electrical units (kWh) so that villagers could calculate their monthly
bill through a simple meter reading.
METHODOLOGY
The OneWorld Governance Knowledge Centre (GKC) team conducts extensive research to
identify initiatives that contribute towards the betterment of public service delivery in India.
The Community Solar Power Plant (CSPP) project, with its focus on using an alternative
alte
source
of energy for the rural poor through an innovative, unique, economically and socially
sustainable and replicable design, fits the mould of a best practice.
After establishing CSPP as a best practice, the GKC team conducted thorough secondary
seconda
research using web sources to understand how the initiative works and benefits the people.
Key stakeholders were identified and interviewed to gain deeper insight into the operations
and impact of the initiative.
KEY STAKEHOLDERS
SCATEC SOLAR: Norway a solar solutions company that funded and developed the
complete technology. It installed and commissioned the plant and developed a maintenance
plan to sustain the plant in the long term (an estimated 20 years).
Case Study

Government of India
Community Solar
January 2011
DEVELOPMENT ALTERNATIVES GROUP:

GROUP an Indian non-profit
profit organisation that played the
role of the project facilitator largely by mobilising the villagers. DA helped in interactions with
the local administration. DA devised a foolproof plan for gradual transfer of responsibilities to
the VEC.
VILLAGE ENERGY COMMITTEE: The ownership of the plant rests with the VEC; this includes
operation and maintenance of the plant. The VEC was involved in every step of setting up the
plant right from the planning process, land acquisition, village mobilisation,
mobilisatio and training and
revenue generation. It includes members from all sections of the village community.
DD SOLAR 23 INDIA PVT. LTD.: A Gurgaon-based
Gurgaon based electronics company of the Bergen Group,
DD Solar provided the engineering know-how
know
and was responsible for
or the execution of the
project on a fixed time-period
period based
LESSONS LEARNED
IMPROVEMENT IN THE QUALITY OF VILLAGE LIFE
Economically: The plant has increased the energy

supply in the village. This increase in power
supply
has
enabled
villagers
to
explore
entrepreneurial ventures and has boosted micro industry.

Rampura now has flour mills that run on solar-powered
solar
Flour Mill/ Source: UNDP
motors. Activities
tivities like sewing, which were earlier done manually, are now carried out
with the help of electrical machines, thereby saving time and energy and increasing
productivity.
Comfortable living conditions: Villagers can now use electrical appliances including
inc
electrical lights, fans, coolers and engage in entertainment
activities via the television and radio.
Improved safety and security: Well-lit

Well
street lights act
as a deterrent for mischievous behaviour that may cause

harm to the villagers life and/or
or property.
STREETS
LIT AT NIGHT/
SOURCE:
Increased level of health

alth and hygiene: The usage of
solar energy has reduced the health hazards caused by kerosene


Government of India
Case Study
Community Solar
January 2011
stoves. It has also lowered the pollutants in the air. Villagers are building toilets, as well
streets lights to discourage open defecation.
Positive impact on women and children: Due to lights being available in the evening,
women no longer have to finish their household chores in a hurry. They can also engage
in entertainment activities and develop new skills like sewing and rope making, which
contributes to an increase in their monthly income. School children get 1.2 to 2 hours of
extra study time in the evenings.
evenings. Additionally, computer classes have begun, adding to
the skills of the students and
Source: UNDP
increasing their future opportunities. The solar plant is facilitating regular supply of electricity
to the primary school in Rampura, easing the hot summer days for the children and increasing
their rate of attendance.
ESTIMATING
MATING ENERGY REQUIREMENTS
The load survey carried out prior to setting up the plant helped in identifying the trend for load
demand. This could be used for other villages as well. The average consumption of each
household per month is around five to seven
seven units, which increases in the summer season. This
pilot experience has provided valuable insight into determining the realistic power plant
capacity, which is very important in making CSPP a financially viable model.
ON THE FINANCIAL SIDE
While there is certainly a significant initial investment to consider when replicating this solar
energy model, the consumption tariff structure ensures financial viability in the long run.
10

Government of India
Case Study
Community Solar
January 2011
Villagers accept this model willingly because it follows the simple

simple rule of if you use more, you
pay more. The tariff structure can also be easily replicated.
IMPORTANCE OF SOCIAL COHESION AND COMMUNITY MOBILIZATION
While the VEC in Rampura effectively executed the entire project and the village community
extended their
heir whole hearted support, the case in Gopalpura was different. People in
Gopalpura were supportive in the beginning; however, gradually problems arose. For example,
people found it difficult to visit the plant to charge their batteries and lanterns. They preferred
electricity services at their homes. Social divisiveness also hampered the management and
operation of the Gopalpura plant. The success of the Rampura model over the Gopalpura one
stresses the importance of promoting social cohesion.
LOOKING AHEAD
EAD
The demand for energy is increasing and therefore, the problem of unmet demand exists. The
Current irrigation requirements require expansionary steps be taken. Implementers are
working on addressing this, as well as ensuring that villagers pay bills on
o time and use the
electricity efficiently so that the needs of the whole village are met. Meanwhile, the success of
the project has been tremendous and it continues to transform village life.
Research was carried out by the OneWorld Foundation, Governance

Governance Knowledge Centre (GKC) team.
Documentation was created by Research Associate, Sapna Kedia
For furtherr information, please contact Naimur Rahman, Director, OWFI at owsa@oneworld.net
REFERENCES
Light at night: Community Solar Power Plant, a UNDP case-study
case
Development Alternatives project report to Scatec
Empowering Villages by Solar Photovoltaic, Scatecs case study 11
11

Government of India
Case Study
Community Solar
January 2011

APPENDIX A -INTERVIEW
INTERVIEW QUESTIONS
Mr. Patara, Development Alternatives
1. What was the need for a solar power plant project in Rampura and Gopalpura? Can you
describe for us the genesis of the project?
2. The key stakeholders in the project are Scatec Solar, Development Alternatives and
an DD Solar
23 India Pvt. Ltd. What are their respective roles?
3. Can you explain to us the procedure of setting up the plants (land procurement, building the
plant, wiring with individual houses)? How were the villagers mobilized and involved in the
process?
4. How does the plant operate both in terms of electricity generation and distribution?(ask for
diagram if possible)
5. A Village Energy Committee (VEC) was formed to involve the community. How was this
committee formed, who are its members, what is its role and how does it conduct its
operations?
6. What is the financial model of the project? How is sustainability ensured?
ensured?
7. How is the functioning of the plants monitored?
8. What are the major achievements of the project and its impact so far?
9. What were some of the challenges faced in operationalising and running the project? How
were they overcome?
10. Are their any enhancements planned for the future?
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Community Solar Power Plant Project

Governance Knowledge Centre

Researched and Documented by

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

EXECUTIVE SUMMARY ................................................................................................

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

1 MINISTRY OF POWER SURVEY 2005

Researched and documented by

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

establish a community managed model of operation and revenue generation

OneWorld Foundation India

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

TRANSPARENCY AND ACCOUNTABILITY

Rampura and Gopalpura. The Rampura plant uses

in the villages. Rampura supplies power to individual homes

OneWorld Foundation India

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

TRANSPARENCY AND ACCOUNTABILITY

A POLY-CRYSTALLINE SOLAR PANEL

3 STRINGS OF 20 MODULES EACH; EACH

0.75 KM LONG MINI DISTRIB

3 DAYS OF ELECTRICITY SUPPLY IN THE ABSENCE

CAPABLE OF POWERING 13 STREET LIGHTS

PROVISION TO SUPPLY 220 V AC ELECTRICITY FOR ENTERPRISE LOAD UP TO

Source: Light at night: Community Solar Power Plant. UNDP

Source: Scatec Solar

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

Rs. 4.5 per unit

OneWorld Foundation India

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

TRANSPARENCY AND ACCOUNTABILITY

DEVELOPMENT ALTERNATIVES GROUP:

Economically: The plant has increased the energy

entrepreneurial ventures and has boosted micro industry.

Flour Mill/ Source: UNDP

Improved safety and security: Well-lit

as a deterrent for mischievous behaviour that may cause

Increased level of health

solar energy has reduced the health hazards caused by kerosene

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY

Researched and documented by

OneWorld Foundation India

Governance Knowledge Centre

TRANSPARENCY AND ACCOUNTABILITY