solar power

Summarized by Energetica India

Solar Micro-Grids in India; a Case Study

Realising the importance of an ideal replicable model that can help generate more investment,
Greenpeace has developed a ‘pilot smart micro-grid based on renewable energy technologies’
and also aims to discover a micro-grid management and ownership model (or models) that is
operationally and financially sustainable.

D
ecentralised Renewable Energy
System (DRES) or distributed
micro-grids can be designed to
meet the specific power needs of different
populations on a variety of different scales,
and therefore, are an inclusive solution that
can meet the needs of diverse economic
segments. Additionally, in the context of
poor rural communities, micro-grids offer
clear financial advantages for low-income
end-users, as access to electricity results
from an ongoing service agreement rather
than ownership of a product (such as a so-
lar home system or solar portable lighting
device).
Despite such advantages for commu-
nities and being a technically promising
investment, micro-grids in India have not
been scaling up. This is mainly due to ex-
isting financial and operational challenges
in developing a functional commercial
model. An ideal model would be one that
generates sufficient revenue from end us-
ers to cover upfront capital expenditures
and also ongoing maintenance costs while
delivering a financial return. Hitherto, ide-
al implementable micro-grid models have
not come up due to a lack of cost-effective
long-term management, maintenance and
revenue collection systems that can ensure
financial and operational sustainability.
Greenpeace believes that a decentralised
and sustainable approach is the fastest and

Energetica India speaks to Manish Ram,

Analyst, Renewable Energy, Greenpeace India on this project
Energetica India: Are micro-grids an an-
swer for India’s rural population that
has been without power since independ-
ence? Why?
Manish RamRam: Distributed micro-grids
that use locally abundant fuel sources (e.g.
hydro, solar, biomass) represent a poten-
tially significant alternative to the central-
ized grid as they are capable of delivering
reliable, consistent service where the latter
cannot. Micro-grids can be designed to
meet the specific power needs of different
populations on a variety of different scales,
and therefore are an inclusive solution that
can meet the needs of diverse economic
segments. Additionally, in the context of
poor rural communities, micro-grids offer
clear financial advantages for low-income
end-users, as access to electricity results
from an ongoing service agreement, rather
than ownership of a product (such as a so-
lar home system or solar portable lighting
device). This means little to no upfront in-
vestment is required, and that low-income
subscribers make small recurring payments
that better match their limited, inconsist-
ent cash flows.
However, micro-grid developers meet
with challenging financial and operational
hurdles that continue to limit significant
penetration. Developing commercial mod-
els that generate sufficient revenue from
end users to cover upfront capital expen-
ditures, and ongoing operations and main-
tenance costs, while delivering a financial
return has proved to be an elusive target.
Moreover, micro-grid projects that do pro-
ceed often fail to implement cost effective
long-term management, maintenance,
and revenue collection systems that can
ensure financial and operational sustain-
ability. As a result, technically promising
investments are all too commonly squan-
dered, and community benefits cut short.
In this context, Greenpeace intends to
develop a ‘pilot smart micro-grid based on
renewable energy technologies’ and also
aims to discover a micro-grid management
and ownership model (or models) that is
operationally and financially sustainable. In

4 energetica india · SEP|OCT14


the right way forward in providing electric-
ity to the millions presently deprived of
it. With this vision for the last two years,
Greenpeace has been campaigning to-
wards knowledge creation, awareness
generation, technology demonstration
and policy development for increased
investment.
Realising the importance of an ideal rep-
licable model that can help generate more
investment, Greenpeace has developed a
‘pilot smart micro-grid based on renew-
able energy technologies’ and also aims
to discover a micro-grid management and
ownership model (or models) that is op-
erationally and financially sustainable.
Hence, the aim is to create an environ-
ment conducive to large-scale develop-
ment of smart micro-grids across Bihar
and the rest of India. The pilot supports
a suggestive regulatory framework from
Greenpeace and informs policy makers
and energy regulators of the policy re-
forms necessary and the required financial
mechanisms for scaling up the concept.
achieving this objective, Greenpeace seeks
to advance an approach that decreases
the risks and maximizes the impacts and
returns of both public and private invest-
ments. Hence creating a conducive envi-
ronment for the large scale development
of smart micro-grids across the state of
Bihar and rest of India.
Energetica India: What kind of economic
changes do we see in a village with the
implementation of micro-grid or any
other type of power generation?
Manish Ram: One of the major impacts is
that there more activity in the evening and
generally the shops have been doing busi-
ness for an extra 3-4 hours per day. People
feel a lot more secure with the street lights
around all night. It has led to more small
scale entrepreneurs (good example was af-
ter the installation of the street lights, just
within couple of weeks there was a guy
selling boiled eggs and omelettes at the
junction in the evenings). The other major
economic benefit would be the use of solar
pumping systems, as they were using die-
sel based pumping for irrigation, the costs
we increasing with the diesel prices being
deregulated, solar based pumping is a lot
energetica india · SEP|OCT14
Location Details
Extensive field research and assessment
based on various feasibility criteria resulted
in selecting Dharnai village panchayat in
the Makhdumpur block, Jehanabad dis-
trict, Bihar. Just 80 kms from Patna (on the
Patna-Gaya highway) it also has a railway
station, Barabar Halt. There are around
more cost effective and this can really help
farmers improve their economic conditions.
Energetica India: What kind of difficulties
[in terms of acceptance from villagers,
government support, natural, etc] did
Greenpeace face while implementing
this project?
Manish Ram: Some of the major challenges
were getting the community to accept this
project & initiative, and also create aware-
ness amongst the villagers about the con-
cept and how solar energy can be utilised
for power. Also getting the community
to understand the reasons for this being
more expensive than gird power and how
this can help replace diesel based pump
sets etc. Also the weather conditions were
quite challenging with extreme hot condi-
tions, and high humidity so it did take an
extra effort by the members involved in the
installation.
Energetica India: Did you receive any gov-
ernment subsidy for this project? Who
has funded this project?
Manish Ram: There was no element of sub-
sidy or any other form of financial incen-
tive from the government. This project is
solar power
450 households in the village with a popu-
lation of around 2,200 people.
Thirty years ago, due to various reasons,
the village lost its electricity infrastructure.
Since then, the villagers have suffered due
to lack of electricity and have been waiting
for it to be restored.
The total land holding is 1,500 bigha [~
600 acres] and around 1,200 bigha [~480
acres] is used for agriculture. Agriculture
is the predominant economic activity and
there has been a substantial energy de-
mand for irrigation. Greenpeace survey
showed that about 4,03,125 cubic meters
of water is required annually for irrigation.
Cumulatively, the expense for irrigation is
about Rs. 12,54,000 annually.
With increasing diesel prices, these ex-
penses will continue to rise further. The vil-
lage settlement area, comprising houses,
shops and other buildings, is around 100
bigha. Various shops dot the village along
with local eat-outs, bank, etc., constitut-
ing the commercial demand for energy.
Households spread across the village in 4
solely funded by Greenpeace, which it has
raised through individual contributions.
Energetica India: Which solar panels [tech-
nical details and company name] and
inverters [technical details and company
name] were used in this project?
Manish Ram: With regard to this project we
have worked with a technical developer
(Kripa Lights – Bangalore based solar &
LED company) they were responsible for
installation of the entire project.
• Solar Panels – EmmVee Solar, 280 pan-
els of 250 Watt for Solar power gen-
eration and 150 panels of 200 Watt for
Solar Water Pumping.
• Inverters – Emerson, 14 Power Condi-
tioning Units of 5 KVA capacity.
Energetica India: Please share with us any
plans to replicate the model in other ar-
eas in India
Manish Ram: We will not be directly rep-
licating/installing such projects, but will
continue to work towards getting the right
policy & mechanisms needed for large
scale expansion. We will play a facilitating
role in future expansion & replication of
this kind of micro-grids mainly in Bihar 7
5
solar power
clusters need lighting, fans, mobile charg-
ing; and in some cases, television.
All these made Dharnai an ideal case for
Greenpeace’s demo project.
Project Details
It is a 100 kW plus expandable pilot smart-
grid based on renewable energy technolo-
gies. It uses 280 solar panels to generate
more than 100 kW of electricity that cur-
rently powers more than 400 households,
who have applied for connections.
The micro-grid is based on a bottom-up ap-
proach. It begins with a certain ambition and
can be scaled up based on people’s demands
and requirements. Being a community-led
project, it is to be managed by electrification
committees, which consist of members of
the village community using the micro-grid.
The micro-grid also intends to create a
model that is replicable and can be used
by the government for electrification
across Bihar and the rest of the country.
The micro-grid intends to be financially
sustainable so as to take care of its own
operations as well as attract investors and
financial institutions into the arena of de-
centralised renewable energy systems.
Greenpeace has involved BASIX and
CEED as co-implementers of the project.
BASIX has the expertise in financially man-
aging a system like this, whereas CEED is
the organisation that will be the commu-
nity interface in Dharnai.
The model currently gives two kinds of
domestic and a commercial or business
package:
• The basic package includes one light
connection and a charging point total-
ling 18 watts per household as a basic
domestic package.
• The second package includes three
lighting points and a mobile charging
point with a total usage of 30 watts.
Residents opting for fan or television
connections would also be falling un-
der this package.
• The third is a commercial package for
shops and businesses which includes
one lighting point, one mobile charg-
ing point and a street light. It uses 18
watts of electricity. The package tak-
ers will also be allowed to use a fan
connection.
Other than this, the micro-grid also in-
cludes 10 solar-powered water pumps of 3
6 energetica
horsepower capacity each for irrigation and
60 solar street lights. The water users group
in different tolas will manage water for ag-
riculture through the solar water pumps.
The micro-grid runs on solar-powered
photovoltaic panel system installed on the
roof-top of government buildings, private
buildings and residences. There is a battery
bank with smart inverter in each cluster.
Each cluster is divided into 20 kW, has total
70 kW capacity for the lighting and 30 kW
for minor irrigation purposes. Irrigation is
through installation of 10 solar pumps with
a capacity of 3 horsepower each.
Working with Partners
The micro-grid will be operated and main-
tained by BASIX and CEED with the help of
village electrification committees. Green-
peace will play an active role in training of
the community so that they can maintain
the micro-grid.
Centre for Environment and Energy De-
velopment [CEED] represents a network
of NGOs, CSOs, think-tank organisations
in Bihar to support renewable energy de-
velopment in the state. CEED is primarily
supported by Greenpeace and is working
on the Dharnai project towards garner-
ing grassroot-level support and building
awareness about microgrids and enhanc-
ing energy access in the state of Bihar.
BASIX is a livelihood promotion institu-
tion established in 1996, working with
over 3.5 million customers, over 90% be-
ing rural poor households and about 10%
urban slum dwellers. BASIX works in more
than 17 states across the country. Its mis-
sion is to promote a large number of sus-
tainable livelihoods, including for the rural
poor and women, through the provision of
financial services and technical assistance
in an integrated manner.
The Operator (BASIX Urja) will serve three
major functions: community engagement;
operation and maintenance; and payment
collection.
• Community Engagement – Commu-
nity mobilisation and awareness raising
activities like face-to-face interactions
and demonstration at group meetings,
village meetings, etc., will be organ-
ised in order to communicate functions
and benefits to potential users. These
activities will continue even after the
launch to further increase the number
of users as well as to collect user feed-
back for improvement.
• Operation and Maintenance –
BASIX Urja’s trained local technician
will monitor the system performance
on a daily basis; set up new connec-
tions (e.g. wiring, installing meters);
provide the first level of support for
technical problems; and conduct mi-
nor repair and maintenance work. For
the major technical problems, such as
equipment replacement, developer’s
engineer will provide the second level
of support.
• Payment Collection – BASIX Urja will
enrol domestic, commercial and agri-
cultural users, keep track of electricity
usage of each user, calculate the billing
amount and collect fees from users on
a regular basis. Multiple models and
tools such as pre-payment and digital
meters are being tested and used in
the market to reduce transaction costs
and increase payment rates and rev-
enues. The team will determine which
ones are most appropriate for this pro-
ject after the detailed analysis phase.
BASIX and CEED have formed a consor-
tium with Greenpeace to implement this
project jointly with the help of the techni-
cal developer, Kripa Solar. Once the project
is completed, it will be managed by BASIX
Patna, who will be responsible to maintain
and operate it.
Dharnai has all the ingredients for a suc-
cess story but lacks access to energy that
will drive the success. Having last seen
electricity in 1981 and since then running
from pillar to post to get an electricity line
for their village, the micro-grid will be a
game changer for Dharnai residents.
Moreover, the residents have been spend-
ing thousands on unreliable and expensive
kerosene and diesel for their energy needs.
With the solar-powered micro-grid, they
will get regular and sustainable supply of
electricity 7
india · SEP|OCT14