Energy Access in Remote Areas Are Micro & Pico Grids Workable ? Presented By: Ashok Madhukar & Shweta Agarwal Afro-Asian Development Consortium New Delhi August 7, 2014 Micro & Pico Energy Grids Remote areas either do not have access to energy or totally unreliable supply systems Poor quality of life due to lack of energy infrastructure and resultant opportunities for income generation / livelihood Workable? Micro and Pico grids are the only workable option for remote areas for generation and distribution of energy and environmental management We need to understand the system constraints of all the stakeholders and their removal/reduction Design Structural and Operational Sustainability Afrodev Engineering Sustainability Need: Demand Driven Ownership & Participation SUSTAINABILITY Resources Program/ Project HR & Funds Design & Delivery Afrodev Lessons Learnt :Remote Area Need Identification Few people want to go there : organizations ability to reach out is low Funding for need assessment and appropriate project design Feasibility study costs more than the project- strange but true Delivery Capacity This situation encourages local cartels who deliver: Substandard work, charge multiple times, have little or no capacity for O&M support Urgent need to build the last mile local delivery capacity Afrodev Lessons Learnt :Remote Area contd… Higher Cost of Acquisition leads to; higher cost recovery ability to pay drops Lessons Learnt : 1. Build Core Teams/ Contractors locally for the design, development, implementation , operation & maintenance and monitoring of the project. 2. Funding for the needs identification, project design and development with the community acceptance and participation: generally about 10% of the project Afrodev Empowerment RE: Dual Contribution Renewable Energy Dual Contribution SOCIAL INFRASTRUCTURE LIVELIHOODS Income Generation Activities Power & Fuel OUTCOME Improved Quality of Life AVAILABILITY ACCESS Sustained Ability to Pay Afrodev Program / Project Design Structural Design is critical for Operational Success Operational Structural Stakeholders Commitments O&M Local Capacity Community Ownership Local Participation 360 Capacity Building Cost Recovery Understanding Ability Each link is critical Willingness Start Up Support HR Funds Afrodev Local Communities Identification of needs / opportunities: Acceptance and help of the local community for the surveys and information collection Willingness of the Community: Ownership: Accept the project Participate in the project development O & M local entrepreneurs and build capacity Share in the cost of services used “Partners in Progress” approach needed with the community rather than “Beneficiaries” Afrodev Missing Link: Intermediaries Role of NGOs Community mobilization and capacity building Primary need assessment Implementation support Operation and Management Cost recovery for services Local Delivery Mechanism Agencies for design and development of the projects Implementation O& M handholding Local Entrepreneurs and operators training Local Monitoring –Core Teams Capacity Building Benchmarks Trends Course Correction and sustainability Afrodev Delivery Mechanisms Who will implement? : Intermediaries NGOs- community interface Local Contractors- build and maintain Capacity Building: Is there capacity to implement Develop and Design the local project Express the need and seek agencies Standardization & Replication: Cost of design on case to case basis is more than the value of the intervention itself Time Taken: Uncertainty is the greatest barrier Staying power: mental and financial Who is investing in the delivery mechanism creation and its capacity building ???... Afrodev The Realty Check Reality is that there is more money but less projects and even less understanding of the project implementation capabilities of the organization and its intermediaries Organizations have the funds but do not have projects to fund in line with their mandates LAD: Demand Driven/ Supply Side interventions: Assisted demand driven is the answer Inventory of local needs / projects Adopt a Village- best holistic approach and replicable Afrodev PROJECTS : Key Actions Simplification Standardization Replication Afrodev CSR - The Road Ahead Inventory of projects that can be funded by CSR Compatibility Matrix: geographies and domains/sectors Capacity Building of Organizations for CSR: Funding Projects Program Design CSR Funding Process: Awareness Standardization Transparency CSR Attitude: CSR to pro-actively seek projects Not behave as another agency doling out funds to beneficiaries Afrodev Strategic Approach: LAD Mawlyngbna, Meghalaya Village Profile : Altitude : 1200 m Precipitation of 8000-10000 mm Monsoon Period-6 months Population < 2000 ( 90% engaged in farming ) Households 350 estimated Cluster of: 4 villages total 750-800 households 3000+ population Provide Energy for: basic primary processing for agriculture produce community buildings and street lighting and communication Afrodev Strategic Approach: LAD Mawlyngbna, Meghalaya Economic Activity: Pico Energy Interventions: The interventions are focused on value addition to the local produce for higher economic activity and jobs in the village area and include: 1. Pico Hydel Power 10Kw 2. Bio Mass Gassifier 10 kw 3. Heat Recovery for drying agri-produce 4. Solar PV system - 5 Kw 5. Bio Gas for Heat Energy Warehousing Drying, Cleaning & Grading Animal Feed Waste Management Organic manure Potable Water Note: Combination supports the seasonal and day / night needs of the community Afrodev Strategic Approach: LAD Mawlyngbna, Meghalaya Pico-Hydro Power Plant 10 KW Land contributed by the community Support the need for power primarily during monsoon period and supplement the existing supply which is not reliable and intermittent Provide convenience for street lights and lighting of community building Impact Economic - higher revenue realisation from agriculture produce Social - Improved quality of life , self reliance & equitable distribution Sustainability Village ownership and participation is integral to this community as demonstrated in other initiatives Afrodev “Let us continue the journey towards Sustainability and Inclusive Growth” Afrodev