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[email protected]

January 2011

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and Pensions, Government of Indiahttp://indiagovernance.gov.in/

Researched and Documented by

OneWorld Foundation India

Community Solar Power Plant Project - Jhansi

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

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

BACKGROUND ................................

OBJECTIVE ................................

WORKING DESIGN ................................

FINANCIAL OPERATIONS ................................

METHODOLOGY ................................

KEY STAKEHOLDERS

LESSONS LEARNED ................................

LOOKING AHEAD ................................

REFERENCES ................................

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

................................................................................................

................................................................................................................................

................................................................................................................................

................................................................................................

................................................................................................

................................................................................................................................

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................................................................................................

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................................................................................................................................

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

1

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................................................................. 4

.................................................... 7

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.......................................... 11

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

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

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 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 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 v

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 electric

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 p

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 in hopes of assisting in the replication process.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

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

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

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 e

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 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 electric

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 p

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

ach in hopes of assisting in the replication process.

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

2

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

a basic building block in the

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

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

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

illagers and train the VEC so that ultimately,

plant operations and maintenance would be locally owned. Sratec Solar funded the project and

The CSPP project has changed the lives of the villagers. They can now use electricity for

entrepreneurial activities, students can study for extra time, the streets are well lit and safe, and

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 a possible

solution to the problem of rural electrification and can be replicated across villages with

This document attempts to capture the working design of the project and highlight its unique

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

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

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

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 SOLAR POWER PLANT PROJECT

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 (CSPP) project in Jhansi District of UP. The project is run by the

Development Alternatives (DA) Group, an Indian non

working in the field of sustainable livelihoods for the past 25 years.

Scatec Solar, a Norwegian en

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 th

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 ho

India.

1 MINISTRY OF POWER SURVEY 2005

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

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.

UNITY SOLAR POWER PLANT PROJECT- 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

nt (CSPP) project in Jhansi District of UP. The project is run by the

Development Alternatives (DA) Group, an Indian non-profit organisation that has been

working in the field of sustainable livelihoods for the past 25 years.

Scatec Solar, a Norwegian 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 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

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 alternative electricity can change lives in rural

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

3

Viable and efficient electricity is a crucial public service. Availability of electricity can increase

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

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.

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

nt (CSPP) project in Jhansi District of UP. The project is run by the

profit organisation that has been

ergy 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

at 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

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

w alternative electricity can change lives in rural

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

OBJECTIVE The objective of the CSPP project is to:

• test 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” (BOOT) model was used wit

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 wom

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

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 gove

administration and the villagers to generate an open dialogue platform on the topic. An

innovative game of ‘saap sidhi

certain positive measures, like the use of solar ele

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 commu

the status of their funds at any given time; hence, mitigating the possibility of misuse of

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

The objective of the CSPP project is to:

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

WORKING DESIGN Transfer” (BOOT) model was used 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, 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 agencies, district

administration and the villagers to generate an open dialogue platform on the topic. An

innovative game of ‘saap sidhi’ (snakes and ladders) was introduced to explain how taking

certain positive measures, like the use of solar electricity, could help village life ‘move up the

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 commu

the status of their funds at any given time; hence, mitigating the possibility of misuse of

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

4

est the technological and commercial viability of using solar power for providing

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

h the ultimate goal of a village

The first step was to create the Village Energy Committee (VEC). Efforts were taken to ensure

en, 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

had a base in the village through its previous projects,

Various workshops were organised to build awareness about the environmental, economic and

rnment agencies, district

administration and the villagers to generate an open dialogue platform on the topic. An

’ (snakes and ladders) was introduced to explain how taking

ctricity, could help village life ‘move up the

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 became aware of

the status of their funds at any given time; hence, mitigating the possibility of misuse of

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

Source: Scatec Solar

revenue. All VEC members are trained in various responsibilities such as cleaning of PV

modules, operation, preventative maintenance, data coll

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 estim

the survey results of present and potential demand, the solar plants were designed and land

in the villages. Rampura supplies power to individual homes

through a 0.75 km long mini

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

model than the one in Gopalpura.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

revenue. All VEC members are trained in various responsibilities such as cleaning of PV

modules, operation, preventative maintenance, data 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.

TECHNICAL OPERATIONS

DA conducted a survey to 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

Gopalpura. The plant capacity in Rampura and

Gopalpura is 8.7 and 9 kWp, respectively. Similarly,

two different distribution models have been tested

in the villages. Rampura supplies power to individual homes

through a 0.75 km long mini-grid, whereas 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.

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

5

revenue. All VEC members are trained in various responsibilities such as cleaning of PV

ection, meter reading at the household

level, bill preparation and distribution, revenue collection, and accounting. It took eight months

ate 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

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

in the villages. Rampura supplies power to individual homes

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

plant was found to be a better

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

THE RAMPURA MODEL (DESIGNED AND BUILT B

• A POLY-CRYSTALLINE SOLAR PA

MODULE CONSISTS OF

TOTAL PANEL HAS THE

• A 0.75 KM LONG MINI DISTRIB

DOMESTIC AND COMMUNI

• BATTERY-BACK UP TO SECURE

SUNLIGHT.

• CAPABLE OF POWERING

• PROVISION TO SUPPLY

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

Source: Scatec Solar

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

DESIGNED AND BUILT BY BERGEN INDIA) CONSISTS OF

CRYSTALLINE SOLAR PANEL HAVING 3 STRINGS OF 20

MODULE CONSISTS OF 50 CELLS AND HAS THE CAPACITY TO GENERATE

TOTAL PANEL HAS THE CAPACITY TO GENERATE 8KWP.

KM LONG MINI DISTRIBUTION GRID TO SUPPLY 220 V ALTERNA

DOMESTIC AND COMMUNITY USAGE.

BACK UP TO SECURE 3 DAYS OF ELECTRICITY SUPPLY IN THE ABSENC

CAPABLE OF POWERING 13 STREET LIGHTS

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

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

Source: Scatec Solar

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

6

CONSISTS OF:

20 MODULES EACH; EACH

PACITY TO GENERATE 145 WP. THE

V ALTERNATE CURRENT FOR

SUPPLY IN THE ABSENCE OF

ENTERPRISE LOAD UP TO 3 HP

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

LINKING THE PLANT TO HOUSEHOLDS IN RAMPURA

A specially designed application form was collected

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 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.

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 infr

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 vi

(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

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. 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 u

was collectively decided to introduce a

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

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

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

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 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 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

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 u

was collectively decided to introduce a

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

7

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

ought out for customising internal wiring within their houses. High

The cost of internal wiring was made transparent to the villagers beforehand as they were to

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

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.

astructure 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.

llagers 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

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

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 of energy, it

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

CONSUMPTION BASED TARIFF MODEL

Consumption (unit/month)

0-5

5-10

10 onwards

Note: Villagers pay an additional charge (Rs 10 / month / household) per street light

The revised tariff structure promotes efficient usage of electricity and

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 alte

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 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

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).

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

CONSUMPTION BASED TARIFF MODEL

Fixed tariff

(Rs./month

Variable tariff

(Rs./ unit)

20

Rs. 4.5 per unit

90

Rs.22.5 + 5.5 per unit

thereafter

160

Rs. 50 + 6.5 per unit

thereafter

Note: Villagers pay an additional charge (Rs 10 / month / household) per street light

The revised tariff structure promotes efficient usage of electricity and

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.

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 alte

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 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

KEY STAKEHOLDERS

– 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).

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

8

Variable tariff

(Rs./ unit)

Rs. 4.5 per unit

Rs.22.5 + 5.5 per unit

thereafter

Rs. 50 + 6.5 per unit

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

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 source

of energy for the rural poor through an innovative, unique, economically and socially

After establishing CSPP as a best practice, the GKC team conducted thorough secondary

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

a solar solutions company that funded and developed the

complete technology. It installed and commissioned the plant and developed a maintenance

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

STREETS LIT AT NIGHT/ SOURCE:

DEVELOPMENT ALTERNATIVES GROUP

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 mobilisatio

revenue generation. It includes members from all sections of the village community.

DD SOLAR 23 INDIA PVT. LTD.: A Gurgaon

DD Solar provided the engineering know

project on a fixed time-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

motors. Activities 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 inc

solar

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

Flour Mill/ Source: UNDP

DEVELOPMENT ALTERNATIVES GROUP: an Indian non-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

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 mobilisatio

revenue generation. It includes members from all sections of the village community.

DD SOLAR 23 INDIA PVT. LTD.: A Gurgaon-based electronics company of the Bergen Group,

DD Solar provided the engineering know-how and was responsible for the execution of the

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

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

Comfortable living conditions: Villagers can now use electrical appliances inc

electrical lights, fans, coolers and engage in entertainment

activities via the television and radio.

• Improved safety and security: Well

as a deterrent for mischievous behaviour that may cause

harm to the villagers’ life and/or property.

• Increased level of health and hygiene: The usage of

solar energy has reduced the health hazards caused by kerosene

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

9

Flour Mill/ Source: UNDP

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

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, and training and

revenue generation. It includes members from all sections of the village community.

based electronics company of the Bergen Group,

or the execution of the

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

Comfortable living conditions: Villagers can now use electrical appliances including

electrical lights, fans, coolers and engage in entertainment

Improved safety and security: Well-lit street lights act

as a deterrent for mischievous behaviour that may cause

or property.

alth and hygiene: The usage of

energy has reduced the health hazards caused by kerosene

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

stoves. It has also lowered the pollutants in the

streets lights to discourage open defecation.

• Positive impact on women and children: Due to lights

women no longer have

in entertainment activities and develop new skills like sewing and rope making,

contributes to an increase in their monthly income. School children get 1.2 to 2 hours of

extra study time in the evenin

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 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 seve

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.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

stoves. It has also lowered the pollutants in the air. Villagers are building toilets,

streets lights to discourage open defecation.

Positive impact on women and children: Due to lights being available

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,

contributes to an increase in their monthly income. School children get 1.2 to 2 hours of

extra study time in the 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

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 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.

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.

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

10

Villagers are building toilets, as well

being available in the evening,

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

gs. Additionally, computer classes have begun, adding to

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

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

n 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.

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.

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

Villagers accept this model willingly because it follows the simpl

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 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

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 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 o

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, Governanc

Documentation was created by

For further information, please contact

REFERENCES Light at night: Community Solar Power Plant, a UNDP case

Development Alternatives project report to Scatec

‘Empowering Villages by Solar Photovoltaic’,

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

Villagers accept this model willingly because it follows the 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

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

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.

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 o

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 Knowledge Centre (GKC) team.

Documentation was created by Research Associate, Sapna Kedia

r information, please contact Naimur Rahman, Director, OWFI at [email protected]

Light at night: Community Solar Power Plant, a UNDP case-study

Development Alternatives project report to Scatec

‘Empowering Villages by Solar Photovoltaic’, Scatec’s case study 11

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

11

e rule of ‘if you use more, you

IMPORTANCE OF SOCIAL COHESION AND COMMUNITY MOBILIZATION

While the VEC in Rampura effectively executed the entire project and the village community

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

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 time and use the

electricity efficiently so that the needs of the whole village are met. Meanwhile, the success of

e Knowledge Centre (GKC) team.

[email protected]

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

APPENDIX A -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 an

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 ens

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?

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

Promoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Community Solar Power Plant Project

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 an

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

4. How does the plant operate both in terms of electricity generation and distribution?(ask for

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

6. What is the financial model of the project? How is sustainability 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

10. Are their any enhancements planned for the future?

CCOUNTABILITY

Case Study Environmental Sustainability

olar Power Plant Project –Jhansi

January 2011

12

1. What was the need for a solar power plant project in Rampura and Gopalpura? Can you

2. The key stakeholders in the project are Scatec Solar, Development Alternatives and DD Solar

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

4. How does the plant operate both in terms of electricity generation and distribution?(ask for

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

ured?

9. What were some of the challenges faced in operationalising and running the project? How