Proceedings of the Workshop on Mini-grids held in Bangalore India

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OASYS SOUTH ASIA Workshop April 22, 2015 Proceedings Mini-grid Workshop Identifying the missing link: Enabling low-income markets through clean mini-grid solutions Venue: TERI Southern Regional Centre, Bangalore Organised by TERI, India

Transcript of Proceedings of the Workshop on Mini-grids held in Bangalore India

OASYS SOUTH ASIA Workshop

April 22, 2015

Proceedings

Mini-grid Workshop

Identifying the missing link: Enabling low-income markets through clean mini-grid solutions

Venue: TERI Southern Regional Centre, Bangalore

Organised by TERI, India

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Produced by:

The Energy and Resources Institute

New Delhi

30th April 2015

For further information, please contact Mr. Debajit Palit ([email protected]).

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Acknowledgement

The activities reported in this report are funded by an EPSRC/DfID research grant

(EP/G063826/2) from the RCUK Energy Programme. The Energy Programme is a RCUK

cross-council initiative led by EPSRC and contributed to by ESRC, NERC, BBSRC and STFC.

Disclaimer

The views expressed in this report are those of the authors and do not necessarily represent

the views of the institutions they are affiliated to or the funding agencies.

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Table of Contents

BACKGROUND ............................................................................................................................ 1

SUMMARY OF SESSIONS ......................................................................................................... 1

INAUGURAL SESSION .............................................................................................................. 2

SPECIAL PROJECT PRESENTATIONS .................................................................................. 3

BREAK-OUT SESSION 1: ROUND TABLE I DEVELOPMENT & INNOVATIONS IN

MINI-GRID DESIGN ................................................................................................................... 6

BREAK-OUT SESSION 2: ROUND TABLE II COMMERCIAL VIABILITY & SCALING

UP OF MINI-GRIDS .................................................................................................................... 9

CLOSING KEYNOTE ................................................................................................................. 11

ANNEXURE I: PROGRAM SCHEDULE ................................................................................ 13

ANNEXURE II: LIST OF PARTICIPANTS .......................................................................... 14

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Background

Almost 1.3 billion people across the globe still do not have access to electricity and probably an equal number have access to unreliable and unaffordable supply of electricity which is

not sustainable. The International Energy Agency's World Energy Outlook 2011 estimated

that over 40% of all installed capacity to achieve universal access to electricity by 2030 will be most economically delivered by mini-grids. A clean energy mini-grids High Impact

Opportunity (HIO) group has also been formed within the international framework of

sustainable energy for all to further enable, enhance, and promote existing and upcoming efforts in the sector, with a view to increasing rate of deployment and market transformation

impact. However, despite advances in technology and cost reductions, the pace at which

clean energy mini-grids are being developed and financed remains slow, due to various technical and financial barriers.

Against this background, TERI, MicroEnergy International and the United Nations Environment Programme held a mini-grid workshop on April 22, 2015 in Bengaluru with

the objective to identify and address challenges and issues related to the sustainable

implementation of clean energy mini-grids across Asia and Africa. Specifically, the objectives were to identify and address the missing link to the sustainable implementation of

clean energy mini-grids; bring together key stakeholders sharing the passion to successfully

push forward energy inclusion, aligned with the SE4All goals and establish a core group of institutions for a regular exchange and provide a platform for the establishment of future

partnerships for financing and implementation.

The workshop was organized under the aegis of the OASYS South Asia project, lasting from

October 2009 to April 2015, which is supported by the Engineering and Physical Sciences

Research Council, United Kingdom (UK) and Department for International Development (DFID). The OASYS project investigated a suite of alternative decentralized business

solutions and corresponding institutional frameworks for electricity and rural energy supply

with a specific focus on South Asia. The workshop attracted 70 delegates from the government agencies, private sector, project implementers, practitioners, academia, and

policy advocacy agencies from more than 10 countries including Bangladesh, India,

Germany, Kenya, France, Norway, Nepal, Singapore, Sri Lanka, the UK, and the USA.

During the workshop, a poster display session was also organised to showcase and share the

key findings from the research undertaken as part of the OASYS South Asia project.

Summary of Sessions

In addition to the Introductory session and the Concluding remarks, the workshop

comprised of three special project presentations which highlighted the lessons and experiences from Rural Electricity Access Programme of different organizations from the

field; and two dynamic break-out Round Tables, each comprising of three parallel sessions.

These two round table symposium held discussion on two subjects one on the development and innovations in mini-grid design and the other one on the commercial viability and

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scaling up of mini-grids. Both the round table sessions were followed by the presentation

and discussion of the results.

Inaugural Session

The event started with the welcome by Ms. Liisa Andersson, MicroEnergy International wherein she welcomed all the participants and shared the objectives of the workshop. Mr P

R Dasgupta, Director, TERI Southern Regional Centre thereafter made the welcome address

on behalf of TERI. Mr Dasgupta in his address emphatically pointed out that this an apt time for this kind of workshop to discuss and deliberate upon the key issues around this theme,

when there is a global focus on energy access and sustainable development of energy

resources. In his speech, Mr Dasgupta highlighted the kind of work being undertaken by the Southern Regional Centre of TERI in this direction. He concluded his speech saying that he

is hopeful that the findings of the workshop will definitely bring out some new and

innovative ways of thinking leading to successful deployment of clean energy mini-grids in the future.

It was followed by video addresses in the “Saving CO2” session by Prof Daniel Kammen from UC Berkeley, California, USA and Mr Dean Cooper, Head of UNEP’s mini-grid

programme. Mr Cooper highlighted the importance of clean energy mini-grids is not only

meeting the persisting challenges of energy poverty being encountered in developing economies of the world, but also in playing a pivotal role in optimizing the available

resources in several developed countries of the world. He stressed that clean energy mini-

grids have been demonstrated as a viable solution in the current regime where grid based electrification is found to be inadequate and ill prepared to meet the growing energy

challenges. He also emphasized that we need to find new ways of translating the knowledge

gained through research in practical terms, so that the usefulness of the research is more.

The key note address of Dr Kammen, highlighted the need and urgency of promoting clean

energy strategy in an aggressive manner. He pointed out the importance of this kind of gathering which could lead to change in the mind sets of policy makers and planners in

promoting clean energy mini-grids, particularly in the South Asian region.

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Special Project Presentations

Mr Debajit Palit, Associate Director, TERI presented the “OASYS South Asia Project: Experiences and Lessons” in the first technical session of the day. The presentation

highlighted various research and demonstration activities that have been undertaken as part

of the OASYS project, the lessons learned through different business models being implemented in different sites with different partners, and academic and other outputs from

the project. He highlighted the five major components of the project namely, identifying

research problems; the academic component of the research; action research component leading to demonstration projects; knowledge sharing and; policy research. He was of the

view that all these components are equivocally important for the project. He highlighted that

the project has achieved intended objectives to a large extent and has been able to 1) publish a large number of high quality research publications in academic journals and three books,

2) disseminate the research in a number of conferences/workshops; 3) develop international

research collaboration with a large number of institutions; 4) build capacity by training researchers, interns, practitioners and local project teams; and 5) established a strong

stakeholder engagement through organising workshops and events. He then elaborated on

the typology of delivery models tried out as part of the demonstration project component at three different states in India i.e. Odisha, Uttar Pradesh and West Bengal. Drawing from the

field experiences particularly from the community managed projects in Dhenkanal, Odisha,

he pointed out that a host of co-benefits were generated from the project. One such important co-benefit is the capacity building through different training programmes. For

example, local women were trained on how to run sewing machines. Similarly, because of

this project, the village itself got a renewed focus by the local administration i.e. by the Village Panchayat as well as by the District Administration. The accessibility to the village

has become much better now. This has led to better provisioning of social infrastructures

such as health facilities and schooling.

Mr Palit also highlighted a set of challenges encountered during the entire process of

deployment of demonstration projects of all types. The challenges, he highlighted, are of technical in nature as well as operational and often social. He pointed out that gaining

confidence among communities over the years was one of the important aspects of project

development. Similarly highlighting the micro-grids implemented by Mera Gao Power, which is a private developer and was supported with viability gap funding under OASYS

project, he pointed out that the key leveraging point of success is the collection efficiency

ensured through a weekly collection mechanism through the ‘Joint Liability Group’ mechanism. Dwelling on third demonstration project by another private developer, Mlinda

Foundation, supported under OASYS, he said that one of the major challenges faced in this

case was the mandatory provision of electrification through diesel run generation sets. He pointed that these models while present three different cases and approaches to deliver

electricity to rural people through clean energy mini-grids; they are unique in their own

ways and have potential to be scaled up.

The presentation was followed by some questions from audience. One of the questions was

related to grid ready infrastructure. Responding to the questions, Mr Palit elaborated on the complex issue of grid interconnection of clean energy mini-grids. He said that at the policy

level, even it seems there is still lack of clarity on ‘what do we mean by grid ready

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infrastructure’. It seems implementing agencies are not clear whether the inverter should be

grid tied (bi-directional) or it should have the option of receiving electricity from the grid as well as solar when grid reaches the village. He then mentioned in case of the OASYS demo

project in Dhenkanal district, TERI has used both – the larger capacity power plant is

connected with the grid tied inverters while the other power plants are connected to grid interactive inverters. In case of grid extension in the village, the larger power plant can be

connected to feed electricity to the grid, while the other panels from the other plants can be

used as a backup to the grid during brown outs and black outs. This way the OASYS project has ensured that we do not spend extra fund for grid tied inverters and at the same time also

ensured that the infrastructure will not go waste in case grid reaches the villages. On a

follow up question about the grid interconnection guidelines in India, Mr Palit mentioned that Central Electricity Authority has released guidelines for the same. However, there still

exits some ambiguities about the finer points and rules for grid interconnection i.e. the step-

by step rules are not yet out. He also mentioned that there are some grey areas about licensing and regulation for off-grid sector with some arguing for regulations along with

tariff parity of grid and off-grid consumers, while others want the off-grid to develop in

market mode.

It was followed by a presentation on the Swarm Electrification concept by Mr Sebastian

Groh, Managing Director of ME SOLshare Ltd, Bangladesh, wherein he spoke about an innovative concept of interconnecting solar home systems to share the electricity generated

through Cash in as you go (CAYG) model by the consumers. Drawing from his experience,

he said that SHS instalment in Bangladesh appears to be not sustainable over long-run as the monthly instalment of SHS is too high. In addition, it is hard to predict demand growth.

More importantly, there is a massive growth of non-IDCOL market, which is hardly

regulated, resulting in poor quality deployment of SHS. However, one of the crucial and recent developments is related to the bottom up sharing pattern, which is a new

phenomenon. This has become a reality in the context of greater use of super efficiency

appliances. He opined that the model ‘share and cash in as you go (CAYG)’ could lead to optimal use of already deployed SHSs in Bangladesh. However, the main challenge is

related to flexibility in sharing the excess capacity. He then elaborated a construct which

would lead to transition from a single SHS to grid connection. He said that as the level of energy service provision increases, the level of complexity also increases. Other related

challenges are quality of services, the mechanism of revenue sharing and issues related to

efficiency.

The presentation was followed by comments by some of the available experts who are

working on similar concepts. Prof Peter Adelmann said that all seems to discuss too much

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on how people in the end can get the grid. He opined that this should not necessarily be the

target, but rather the target should be access to energy to run all sorts of appliances. Mr Groh highlighted that the quality of the services, whether from grid or mini-grid, and

efficiency of appliances is important.

On another question about the cost of the Solshare charge controllers, he mentioned that

while price of a simple charge controller is US$ 3, the Solshare may be available at least 10

times of this price. He further said that while the price may be high, one need to be very careful in the mathematics of how much energy one is able to trade to make it viable. When

one looks at how the households are equipped, they often have multiple infrastructure (SHS,

kerosene lamps, diesel generator etc.) and spend much more when one do the overall calculation for the KWh consumed. He further raised the issue that the only reason people

want to be connected to the grid is because of the subsidized grid.

The session ended with Mr Abhimanyu Sahu, Director, Schneider Electric, sharing the

‘access to energy’ programme of the company with the audience. He highlighted how

Schneider is effectively engaged in provisioning of energy services by providing basic minimum access to energy. He highlighted how Schneider has been spending around 4-5 %

of the sales revenue in R & D. He pointed out the set of challenges related to access to

energy as lack of entrepreneurial skill, lack of business model, inadequate knowledge about the right technology, lack of access to finance and lack of adequate skills and trained people.

He then dwelt on the BIPBOP programme of Schneider initiated in 2008 which was

operationalized through a creation of social fund known as ‘Social Investment Fund’ that primarily invests in start-up companies. Lot of emphasis has also been laid on innovations to

address this issue. Under capacity building programme, 209 centres have been set up in

India which has led to giving training to about 35,000 persons. He then elaborated how Schneider has developed appropriate solution with complete range of products. Schneider

has been providing this solution in several countries such as Bangladesh, India, Indonesia

and Myanmar. He emphasized that the solution should be very much contextual and said that on technology DC micro-grid has again emerged as an efficient technology option for

the mini-grids.

Copies of all the three presentations are appended at the end of the Proceedings.

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Break-out session 1: Round Table I

Development & innovations in mini-grid design

Chair: Dr Akanksha Chaurey, CEO, IT Power

For the first Breakout session, the participants were divided into three round table groups to discuss the various challenges and solutions for enhancing electricity access through clean

energy mini-grids. Three parallel discussions took place on the topics viz. bottom-up versus top-down design; AC versus DC mini-grids; and green versus brown field mini-grids.

The bottom up versus top down mini-grid design session was led by Mr Daniel Philipp from Micro Energy International. The group raised a guiding question that given the rapidly and

vastly changing use patterns, how mini-grids should be approached. One argument raised

during the discussion was that hardly any pilot projects are able to scale up though one view suggested that pilot projects do contribute a lot and they should be valued. The group felt

that bottom-up approach sounds ambitious and hence, it is required to bridge the gap

between the two. Though in bottom-up approach, beneficiaries have better understanding and can probably manage the system better. The group also felt that scale of a project may

determine the approach. The group was also of the view that while in top-down approach

the productive use of electricity is not always known and so sometimes the design may not match the demand, however, the knowledge transfer of modern technology through top-

down approach is easier than bottom-up.

The group then listed out various parameters such as flexibility/responsiveness to local

characteristics, technical design, social aspects, political framework, ownership, financial

viability, affordability, operation & maintenance, accessibility, productive uses and scalability and focused on whether a bottom up or a top down approach is appropriate for

the identified parameters. It was agreed, that some kind of reconciliation is required

between both the approaches. While attributes such as flexibility/responsiveness to local characteristics, social aspects, ownership, affordability, accessibility, development uses and

maintenance and operational capacity may be better dealt through a bottom-up approach,

attributes such as technical design, political framework conditions, controllability and scalability are better addressed through a top-down approach. The group concluded based

on the discussion that the design should be a mix of top-down and bottom-up approaches

and one can take the distinguishing elements and try to apply them to a specific case and come up with weightages for the same.

Next, the discussion on AC versus DC mini-grids revolved around several key aspects such as commercial viability, technical risks, standards/benchmarking and global experience in

both the options. Mr Shahriar Chowdhury of United International University, Bangladesh,

who was leading the group, shared the experience of IDCOL, Bangladesh which supported only AC mini-grids and refrained from supporting DC mini-grids in the absence of any

standards and benchmarks. The group discussion revolved around the cost feasibility,

efficiency, safety and pros and cons of AC and DC mini-grids. In terms of cost feasibility, the group felt that the DC not only have a positive restrictive effect because high power

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appliances cannot be powered such as iron, geysers etc. but also have significantly lower

cost for service provision of basic household needs. It was mentioned that the DC can be a green-field solution that can be used as of now as the electricity loads in rural remote areas

are mostly lights, mobile charging and TV. They can be connected to the grid afterwards

through an inverter.

Regarding the efficiency, the group discussed that AC and DC holds a quotient of power versus dollar efficiency which influences the technical design of the system. As the power

electronics are still relatively expensive, therefore simple systems can reduce the costs. While

DC systems are easy to handle and can be managed by the locally trained technicians and also has low implementation costs, the cost increases manifold due to requirement of storage

and replacement of storage systems at regular intervals. The group mentioned that a

compromise can be made with a DC structure to supply electricity to households and a central AC anchor load which runs only during the day. Further, the group suggested use of

smart and innovative meters for effective revenue collection mechanism.

Also, when it comes to safety, DC systems are considered safe by practitioners and this is

one of the reasons that DC systems are widely used, particularly in IT based organizations.

With respect to health safety aspects, there seems to be no difference between DC and AC, however, voltage levels have a huge impact. The group felt that DC systems can be used at

the household level to use devices meant for entertainment, charging light and fans etc.

which can be powered on a safe extra low voltage level (SELV). However, more protection equipment will be required in case of transmission between different settlements, which

needs higher voltages. With regard to reaching scale, the group was of the view that the aid-

agencies are waiting for scalable DC mini-grids as the experience with DC is limited. The discussion brought out certain factors determining the scalability such as limited

redundancy in the central aspect of AC grids; already established market systems in the

areas and lack of DC standards.

The discussion on the Green versus Brown field mini-grids was led by Ms Chitra

Narayanswamy of IRENA. The discussion initiated with defining the scope and boundary of what constitutes ‘green field’ and what constitutes’ brown field’. On discussing, it was

agreed that the terms will be used in a broad sense. The question of market size also found a

place in the discussion. In addition, it was discussed that the key issues related to hybridization are; identifying the key drivers, spotting the operational challenges of such

hybridization, and more importantly understanding the social dynamics is important. The

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management structure should consider building on the existing structure instead of creating

entirely a new structure. The group discussed about bringing the right kind of partners together to look into models which are working and a robust network of knowledge transfer

through policy makers to grassroots end-user and within the local village energy committee.

During the discussion a case study was highlighted based on the study IRENA conducted in

partnership with UNEP and Siemens titled as "Renewable energy in hybrid mini - and

isolated grids: Economic benefits and business cases". This study was conducted on the diesel power plants in the 3 physical island sites of Bequia, St. Vincent & the Grenadines,

Nusa Penida, Indonesia; Busuanga, Philippines and four virtual island sites of Puerto

Leguizamo, Colombia; Las Terrenas, Dominican Republic; Hola, Kenya; Basse Santa Su, The Gambia case shows that based on private sector financing terms and the EIA mid-case

scenario for oil prices, Solar PV hybridization can reduce average generation costs at five of

seven sites (from 0.3 to 8 percent). If financed with public funds at a 5 percent real discount rate, assuming the same oil price scenario, hybrid mini-grids can achieve cost reductions at

all sites (12 to 16 percent). This is so even when PV generation at the sites would provide just

31 to 40 percent of total electricity needs. It goes to show that for one percentage incremental solar generation the fuel costs reduce by 0.5 percent.

The panellists discussed the example of brown field projects of 2 scenarios. One (such as in

India and Bangladesh) where renewable energy based mini-grids provided for basic domestic needs in regions that were grid connected but with unreliable supply, and those

un-electrified regions where it ran in parallel with an existing diesel network. Others (as in

Kenya), where renewable energy was integrated in existing diesel mini-grids, helping to minimize the use of diesel and provided for additional hours of supply. With regard to

scenario one, field experiences showed that the provision of reliable supply with much

lower tariffs by the renewable energy based mini-grid was able to phase out the existing diesel operators in the region. The lower tariffs for renewable energy project came from

subsidies both for capital costs as well as to partially meet the operational costs. Also,

renewable energy mini grid operator who served the anchor loads, such as telecom towers in a rural setting, worked with the network of diesel operators making them the tail end

distributors and providing them with the margins that are comparable to their sales from

diesel operations. In the other scenario, diesel operated mini-grids for off grid electrification in Kenya were operated by government agencies. The plants were limited to 4 hours of

operation and were being hybridized with PV to reduce diesel consumption (from 30

cents/kWh to 11 cents/kWh).

After the closure of all the three parallel session, there was a plenary discussion, which was

chaired by Dr Akanksha Chaurey. During the plenary, the leaders of the respective groups

presented the key points of the round table discussion.

Some of the key issues/questions that were brought out and debated in the plenary session

were the need to integrate with stand-alone systems and a need to deal with community

outliers; financial models that are appropriate for consumers and investors; the technical and cost feasibility of AC and DC micro-grids for different types of usages and the risks

involved; the question of converting from diesel to clean energy as a good investment

opportunity; and about investment environment for green field and brown field mini-grids.

With respect to designing of mini-grids, both aspects of bottom up and top-down approach

have different weightage and the design approach might depend on number of factors and

attributes and complimentary of designs may be required for better success. With regard to

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AC and DC design, it was said that the DC might be feasible for lower capacity systems (say

up to 100 kW) mainly for providing lighting, mobile phone charging and TV/fan etc. AC system will be more viable if power is required for productive applications.

The session on brown field vs. green field concluded that that for the transition from diesel to renewable energy mini grids calls for subsidies and low cost financing to provide for

tariffs that were comparable or lower than those of diesel operators. In order to incentivize

such operators and help make the transition, the capacities had to be built and financing should be made available for the integration of renewable energy systems. Further, existing

diesel operator networks need to be tapped with tail end distribution to be channelized

through them and subsidies on kerosene can be rechanneled to provide for low interest loans for renewable energy mini-gird projects.

Break-out session 2: Round Table II

Commercial viability and scaling up of mini-

grids

Chair: Mr Harsha Wickramasinghe, Deputy Director General of the Sri Lanka

Sustainable Energy Authority, Sri Lanka

Post lunch, the second Breakout session was held on the commercial viability and scaling up of mini-grids discussing three topics in parallel sessions. Some of the key issues discussed

were key constraints to acceleration of small scale, village level micro-grids; policy and regulatory thrusts required at the sub-national/provincial levels; structural barriers limiting

the investment by the private sector; public–private cooperation for scaling up mini-grids;

need for super-efficient loads and quality measurement frameworks for ensuring viability of mini-grids. All these topics were intensely discussed by the respective groups and then the

key points were presented at the plenary session chaired by Mr Harsha Wickramasinghe.

The discussion on the “Enabling policy framework, partnerships, and institutional

requirements” was led by Mr S C Rajshekar of Symbiotic Research Associates, India. The

group stated that creating a level playing field with grid electrification is important and equity aspects should also be kept under consideration. Further, there was a discussion

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about how to determine tariff, identify key actors and engage with those key actors. The

Group discussed that there are lack of actors in the mini-grid sector, which acts as a hindrance for the growth. While there are policies at the national level, they may not always

be enabling or sometimes may also be ambiguous. The Group concluded that while the

policy framework is important at the national level, it is also important that the sub-national and local level is aware of the policies so that it can ensure its proper and faster

implementation. Further, connections to productive loads and any implementation of such

loads can best be taken up in synergy with sub-national policies depending on the demand. The group also stressed on developing a mechanism for more active engagement with

different actors, developing a level playing field for mini-grid and off-grid with grid sector

in terms of support, financing and tariff design among others.

Next, discussion on “Attracting public and private capital and innovative financing” was led by Mr Mitra Ardron of Lumeter Networks and Technology, in which the group talked about

available financing mechanisms and main structural barriers, limiting the investment by the

private sector. The group identified some of the critical barriers to private finance in the sector as unclear risk mitigation options, bankable business models, no proper exit

opportunities and political framework conditions, unclear subsidy mechanisms, uncertain

demand in rural areas and difficulty in raising working capital. The group inferred that the biggest barrier to outside investment other than government is the lack of viable business

models. There are viable business models for phone charging and lighting but the pricing is

around INR 150/kWh. One of the reasons reflecting this high cost is due to use of efficient LEDs, which provides the equivalent light like a bulb but consumes one-tenth of the energy.

So it may also be necessary to determine the cost in terms of lumen-hour instead of kWh.

The group mentioned that business models do not appear to be viable when priced at close to grid. However, it is unclear whether anyone will pay a high amount; while high tariffs

may create viability but are threatened by grid extension based on subsidized tariffs.

Further, there was a discussion on the matter if there is any role for the private sector. In larger scale mini-grids, it does not seem to be the case, as the expected/enforced/reigning

low kWh tariffs for grid based electricity makes it challenging for mini-grid operators to charge a tariff based on economic cost for sustainable operation. There are very limited

examples or close to no knowledge of (viable) mini-grid business models that cover CAPEX

and OPEX. There is a lack of level playing field as central grid tariffs have huge historical subsidies as well as cross-subsidies to meet the operational cost. At the same time, the level

of subsidies needed to make mini-grids viable by far exceeds government budget leading to

unsustainable mini-grids. While the market seems to be huge, it is very fragmented. While

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discussing the ABC (Anchor-Business-Consumer) model that is being implemented at some

places, the group could not develop a consensus on which consumer group is subsidizing whom. While the productive load may be important for generating additional revenues, the

introduction of productive load also adds to the cost and for the revenue may not always be

commensurate with the incremental cost, especially for PV mini-grids. The discussion brought out that there is not really any role for private investment in mini-grids unless

subsidies are removed for grid sector also and there is a level playing field. The dependence

on subsidies and grants means that one cannot expect them to scale to a significant portion of the 1.3 billion un-electrified people. The group also talked about public-private

cooperation and future movements towards self-sustaining business models. One way of

improving viability could be reduction of interest rate and flexible terms of financing.

The topic on “Resource matching” was led by Prof Peter Adelmann of Ulm University,

Germany, wherein the Group focussed on the availability of super efficient loads, import vs. local manufacturing, quality measurement frameworks and need and availability of local

data regarding clean energy sources. The group felt that storage is a key issue and even non-

electrical storage is quite important. The group also discussed that in order to predict demand fresh approaches are required as it plays a significant role.

Closing keynote

The workshop concluded with the closing keynote address by Prof Saifur Rahman of Virginia Tech University, USA. He started his speech by posing a question that why no one

talked of mini-grid 20 years ago. He then gave examples from USA electrification

programmes of fifties and the role played by cooperatives set up by the government, when private sector was not willing to electrify rural areas. He said that similar situation exists in

South Asia now and so the community have to be taken along for better results. He

stressed, citing the example of popularity of smart phones, that it is not always the cost but the versatility of the service provided by a gadget which is more important for success. He

then touched upon various issues of sustainable electricity supply and talked about a

pyramid framework where the technology is at the top; followed by human resources; regulation and finance in the middle; and at the base is customer acceptance. He stressed

that it is not the cost but the usefulness of the service which is more critical for success.

Concluding his speech he emphasized that customer acceptance is essential for the success of any business model.

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In his concluding remarks, Mr Debajit Palit thanked all the speakers, panellists and

participants for attending the workshop and sharing their thoughts.

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Annexure I: Program Schedule

10.00 – 10.10 Welcome - Liisa Andersson (MEI)

Welcome and Introductory remarks - Mr P R Dasgupta, IAS (Retd.), TERI SRC

10.10 – 10.30 Saving CO2-: Video Keynote Addresses

Dr Daniel M Kammen (UC Berkeley, California, USA)

• Micro-grids and Rural Electrification – A critical review

Dean Cooper (UNEP)

• UNEP’s Green Mini-grid program

10.30 – 11.20 Special project presentations

• OASYS South Asia Project – Debajit Palit (TERI, India)

• Swarm Electrification - Sebastian Groh (ME SOLshare Ltd, Bangladesh)

• BIP BOP project – Abhimanyu Sahu (Schneider Electric)

11.20 – 11.45 Tea/coffee Break

11.45 – 12.00 Introduction to the break-out sessions

12.00-12.05 Introduction to Round Table I: Development & innovations in mini-grid design

12.05 – 13.05 Parallel Sessions

Bottom-up vs. top-down (led by Daniel Philipp, MicroEnergy International, Germany)

AC vs. DC mini-grids (led by Shahriar A Chowdhury, UI University, Bangladesh)

Green vs. brown field mini-grids (led by Chitra Narayanswamy, IRENA)

13.05 – 13.30 Presentation and discussion of Round Table results (Chair: Dr Akanksha

Chaurey, CEO, IT Power)

• Presentation by Group head of breakaway sessions

• Discussion / Q & A

13.30 – 14.30 Lunch Break/ Networking

14.30 – 14.35 Introduction to Round Table II: Commercial viability and scaling up of mini-grids

14.35 - 15.40 Parallel session

Enabling policy framework, partnerships, institutional requirement (led by Mr S C

Rajshekar, Symbiotic Research Associates, India)

Attracting public and private capital and innovative financing /risk mitigation (led by Mitra

Ardron, Lumeter Networks)

Technology and resource matching (led by Prof. Peter Adelmann, Hochschule Ulm,

Germany)

15:40 - 16:10 Presentation and discussion of Round-table results (Chair: Mr Harsha Wickramasinghe,

Deputy Director General, Sri Lanka Sustainable Energy Authority)

• Presentation by Group head of breakaway sessions

• Discussion/Q&A

16:10 - 16:30 Tea/coffee

16: 30 - 17:00 Closing Keynote - Prof. Dr. Saifur Rahman, Virginia Tech

17:00 - 17:15 Introduction to MES 2015 – Sebastian Groh, TU Berlin

17:15 - 17:30 Concluding Remarks - Debajit Palit, TERI

17:30 - 18:00 Screening of Solar Chronicle – An OASYS story on solar micro grids

14

Annexure II: List of Participants

S.No Salutation First Name Last Name Institution

1. Mr Mateen Abdul Emergence

Bioenergy Inc

2. Mr Peter Adelmann HS Ulm

3. Ms Anjana Agarwal World Resources

Institute

4. Mr Amiraly Akhil Ecole Polytechnique

5. Ms Liisa Andersson Micro Energy

International

6. Mr Siddhanth Awasthi Tata Solar Power

7. Mr Jonathan Bassett Selco Foundation

8. Mr Dhruv Bharadwaj Schneider Electric

9. Mr Rishab Bhargava Tata Solar Power

10. Mr Vijay Bhaskar Mlinda India

11. Mr Vijay Bhopal Scene Consulting,

UK

12. Ms Catherina Cader Reiner Lemoine

Institute

13. Ms Leena Chandran

Wadia

ORF Mumbai

14. Dr Akanksha Chaurey IT Power

15. Mr Alakesh Chetia Sun Edison

16. Mr Shahriar

Ahmed

Chowdhury United International

University

17. Mr Sreekanth C S E-Hands Energy

(India) Pvt. Ltd.

18. Mr Pronab Dasgupta TERI

19. Mr Hari Dilip Kumar Micro Energy

International

15

S.No Salutation First Name Last Name Institution

20. Ms Roshini D'souza Schneider Electric

21. Mr Dominic Fernando Schneider Electric

22. Mr Pardeep Garg Indian Institute of

Science

23. Mr Arvind Garimella TERI

24. Mr Ratan Kumar Ghosh GIZ Bangladesh

25. Mr Henry Gichungi Kenya Power

26. Mr Sebastian Groh ME Solshare

27. Dr Jelte Harnmeijer Scene Consulting,

UK

28. Ms Nadhiya Hemanath Schneider Electric

29. Dr Mitavachan Hiremath FluxGen Engineering

Technologies

30. Mr John Holmes Smart Villages

Initiative

31. Ms Asma Huque PSL

32. Mr Ajay Karkhanis NVI India

33. Ms Deepali Khanna Rockefeller

Foundation

34. Mr Hannes Kischoff Micro Energy International

35. Mr Bhaskaran K Krishnamurth

y

SELCLO Foundation

36. Ms Shweta Kulkarni Prayas, Energy

Group

37. Ms Purnima Kumar Barefoot Power India

38. Mr Sathish Kumar Schneider Electric

39. Ms Aruna KumaranKan

dath

Centre for Science

and Environment

16

S.No Salutation First Name Last Name Institution

40. Mr Raju Laudari Alternative Energy

Promotion Centre

(AEPC)

41. Mr Rajesh Manapat Sun Edison Energy

India Pvt. Ltd

42. Mr Roshan Mascarenhas Selco Foundation

43. Mr Evan Mertens Rural Spark

44. Mr Adron Mitra Lumeter Network

45. Dr Parimita Mohanty The Climate Group

46. Mr Charles Muchunku Kenya Renewable

Energy Association

(KEREA)

47. Dr Janakaraj Murali TERI

48. Mr Arunkumar Nagpal Mrida Renergy &

Development Pvt.

Ltd

49. Ms Chitra Narayanswa

my

IRENA

50. Ms Akila Navin Sun Edison

51. Mr Debajit Palit TERI

52. Mr Ketan Parab E-Hands Energy

(India) Pvt. Ltd.

53. Mr Setu Pelz RVE.SOL

54. Mr Daniel Philipp Micro Energy

International

55. Mr Saifur Rahman Akash Solar

Engineering Ltd.

56. Dr S C Rajshekar Symbiotec Research

Associates

57. Ms Vaishali Rao SELCO Foundation

58. Mr Abhimanyu Sahu Schneider Electric

17

S.No Salutation First Name Last Name Institution

59. Dr Gopal K Sarangi TERI University

60. Ms Shruti Sharma International

Institute for

Sustainable

Development (IISD)

61. Mr Tarun Sharma Indian Institute of

Science Bangalore

62. Mr K Rahul Sharma Centre for Policy

Studies

63. Ms Shruti Srivastava Acumen Fund

64. Ms Kirsten Ulsrud University of Oslo

65. Mr Terry Van Gevelt Smart Villages

Initiative

66. Mr Timothy Walsh National University

of Singapore, Solar

Energy Research

Institute of

Singapore

67. Mr Harsha Wickramasin

ghe

Sri Lanka

Sustainable Energy

Authority

68. Mr Prashanta

Kumar

Swain TERI

19

Presentations

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35

36

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38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

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54

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58

OASYS South Asia project

The Off-grid Access Systems for South Asia (or OASYS South Asia) is a research project funded by the Engineering and Physical Sciences Research Council of UK and the

Department for International Development, UK. This research is investigating off-grid

electrification in South Asia from a multi-dimensional perspective, considering techno-economic, governance, socio-political and environmental dimensions. A consortium of

universities and research institutes led by De Montfort University (originally by University

of Dundee until end of August 2012) is carrying out this research. The partner teams include Edinburgh Napier University, University of Manchester, the Energy and Resources Institute

(TERI) and TERI University (India).

The project has carried out a detailed review of status of off-grid electrification in the region and around the world. It has also considered the financial challenges, participatory models

and governance issues. Based on these, an edited book titled “Rural Electrification through

Decentralised Off-grid Systems in Developing Countries” was published in 2013 (Springer-Verlag, UK). As opposed to individual systems for off-grid electrification, such as solar

home systems, the research under this project is focusing on enabling income generating

activities through electrification and accordingly, investing decentralised mini-grids as a solution. Various local level solutions for the region have been looked into, including husk-

based power, micro-hydro, solar PV-based mini-grids and hybrid systems. The project is

also carrying out demonstration projects using alternative business models (community-based, private led and local government led) and technologies to develop a better

understanding of the challenges. It is also looking at replication and scale-up challenges and

options and will provide policy recommendations based on the research.

More details about the project and its outputs can be obtained by contacting the principal

investigator Prof. Subhes Bhattacharyya ([email protected]).

OASYS South Asia Project

Institute of Energy and Sustainable Development,

De Montfort University,

The Gateway, Leicester LE1 9BH, UK

Tel: 44(0) 116 257 7975