Rural Electrification Cooperative Model (Solar-PV) In Madhya Pradesh


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Rural Electrification Cooperative Model (Solar-PV) In Madhya Pradesh

  1. 1. Rural Electrification Cooperative Model (Solar-PV) in Madhya Pradesh Dr. Najib Altawell [email_address] Center for Energy, Petroleum and Mineral Law and Policy (CEPMLP) University of Dundee, Dundee DD1 4HN, Scotland, UK 11 December 2011
  2. 2. <ul><li>Agenda </li></ul><ul><li>Introduction </li></ul><ul><li>Cooperative </li></ul><ul><li>Cooperative Model </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Electrification Image source: World Map Photo / <ul><li>The village/Town* </li></ul><ul><li>  </li></ul><ul><li>Influence of the geographic endowment on the electrification </li></ul><ul><li>Influence of the State Electricity Boards (SEB) </li></ul><ul><li>Influence of the state’s general development and structure </li></ul><ul><li>The main grid </li></ul><ul><li>A rural village (higher priority = states that depend on the agriculture sector) </li></ul><ul><li>Higher cost = large number of villages = longer transmission lines and interconnection </li></ul><ul><li>Positive effect = irrigation, crop processing and storage are part of the working village environment where electricity demand will be high. </li></ul><ul><li>The existence of electrification within regions adjacent to a village, electrification of the village would be part of the future electrification by the state </li></ul><ul><li>  *(Andreas K., 2006) </li></ul><ul><li>/ </li></ul>
  4. 4. Cooperative Image source: World Map Photo / What is a co-operative? ‘ A co-operative is a group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically.’* ‘ Co-operatives are not about making big profits for shareholders, but creating value for customers – this is what gives co-operatives a unique character, and influences .’* *The Cooperative Group /
  5. 5. Cooperative Image source: World Map Photo / The First Co-operative   The Fenwick Weavers' Society 1761 (Fenwick, East Ayrshire, Scotland) Consumer Co-operative 1769 High standard of weaving craft Food and books The Cooperative Society reconvened March 2008 /
  6. 6. Cooperative Image source: World Map Photo / Robert Owen (1771 - 1858)
  7. 7. Cooperative Image source: World Map Photo / Cooperative Seven Principles (Rochdale Principles) Voluntary and Open Membership Democratic Member Control Members’ Economic Participation Autonomy and Independence Education, Training, and Information Cooperation Among Cooperatives Concern for Community  
  8. 8. Cooperative Image source: World Map Photo / Rural Electric Cooperative by County, USA*  
  9. 9. Cooperative Image source: World Map Photo / Distribution and G&T co-ops combined*  There are 841 distribution and 65 G&T cooperatives serve: 42 million people in 47 states (12% of the nation's population); 18 million businesses, homes, schools, churches, farms and irrigation systems; $112 billion (distribution and G&T co-ops combined); 42% of the nation’s electric distribution lines; Deliver 10% per year of the total kilowatt-hours; Employ 70,000 people; Retire $545 million in capital credits annually; Pay $1.4 billion in state and local taxes *National Rural Electric Cooperative Association  
  10. 10. Cooperative Image source: World Map Photo / Europe India Africa  
  11. 11. Energy Cooperative Image source: World Map Photo / India More than 70% of the population of India is located in villages, where lack of electricity and other essential services hinder the economic and social development* A village cooperative model, therefore, to provide basic and essential services could be one of the solutions for the local community *MNES, 2010
  12. 12. Energy Cooperative Image source: World Map Photo / Universal Coverage Electricity supply should be provided on the basis of ‘universal coverage’, i.e. it should be provided for all the local people, with no exception, where the cooperative power enterprise operate. A number of households connected via a cooperative enterprise have much higher rate of connection, i.e. four time more than the connection provided via SEB* * NRECA, 2002 (SEB=State Electricity Boards)
  13. 13. Energy Cooperative Image source: World Map Photo / Solar Plant There is no other power supply presently available The village/town model should have the basic infrastructure for present and future economic development, e.g. a positive outlook for agricultural and/or local industries Access to main roads * NRECA, 2002 (SEB=State Electricity Boards)
  14. 14. Energy Cooperative Image source: World Map Photo / Memberships Genuine participation and cooperation = the number of the memberships should be limited (Not open for unlimited members) A village or a town of around 5,000 inhabitants can be an ideal for the proposed energy cooperative model An experimental model should focus on the final possible positive outcome which can be achieved successfully with limited resources The whole local population
  15. 15. Energy Cooperative The Model Lack of electricity supply The population size The willingness of the local population to get involved in the management, operation and maintenance aspects The town/village is located within the administered part of Madhya Pradesh state Recent data concerning the village/town are presently available for the project
  16. 16. Energy Cooperative Successful Cooperative Electrification The size of the village Access to good roads Distant to distribution network and/or villages nearby already being supplied with electricity Number of consumers Number of established businesses Number of rural industries Comparison of other similar work done in other countries to the new location Availability of public facilities
  17. 17. Energy Cooperative Guideline Local ownership Community participations Suitable solar model Training Devising method(s) for revenue collection Tariff agreement with the local authority Establishing a committee (e.g. development and for major problems)
  18. 18. Energy Cooperative Hatod District of Mandla (Madhya Pradesh state) Geographical location is within 22° 48' 0&quot; North, 75° 44' 0&quot; East* The last census indicated that there are around 9030 inhabitants** The population of the town comprise of 51% male (4,648) and 49% female (4,382). 16% of the total populations are under the age of 6 *Google Map **India Census, 2001
  19. 19. Energy Cooperative <ul><li>Statistics </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>The following locations from class I to class VI, in the state of Madhya Pradesh, can be presented as an example, i.e. before deciding on the size of the town/village for the cooperative model* </li></ul><ul><li>  </li></ul><ul><li>Bhind (M) [Population: 153,752, Class - I] </li></ul><ul><li>Ashoknagar (M) [Population: 57,705, Class - II] </li></ul><ul><li>Chitrakoot (NP) [Population: 22,279, Class - III] </li></ul><ul><li>Gurh (NP) [Population: 12,450, Class - IV ] </li></ul><ul><li>Hatod (NP) [Population: 9,028, Class - V ] </li></ul><ul><li>Sethia (or Sethiya) (CT) [Population: 4,559, Class - VI] </li></ul><ul><li>(Census of India, 2001). </li></ul><ul><li>*(Census of India, 2001) </li></ul>
  20. 20. Energy Cooperative <ul><li>Data </li></ul><ul><li>  </li></ul><ul><li>The present population growth rate </li></ul><ul><li>The present electricity demand in India is 530kWh/capita-annum The demand rising at a rate of 4.74% per annum, Hatod would therefore require a generation capacity of 7.9GWh/annum or an average delivered power capability of 900kW </li></ul><ul><li>System cost (declining) </li></ul><ul><li>Bank lending interest rate: 4% </li></ul><ul><li>Section 3 of the Electricity Act 2003 has clearly formulated the National Electricity Policy, Tariff policy and National Electricity Plan including optimal utilization resources including renewable sources of energy. Under this Act the solar electricity feed-in tariff rate for financial year 2010/11 onwards has been set at Indian Rupees 14.95/kWh as opposed to the consumer’s purchase price of Rupees 4/kWh. The ratio of sale/purchase price for the consumer is thus 3.7. This compares more favourably than the latter ratio being 3.0 for the UK </li></ul>
  21. 21. Energy Cooperative Technical Aspects*   *Image source: Redrawn and edited from NASA Science, 2010)
  22. 22. Energy Cooperative Hatod’s Energy Data* Estimated power to be consumed = 1.1 MW Peak load = 8 KV Number of household power connections = 1640 Number of commercial power connections = 40 Number of Industrial power connection = 14 Number of agricultural connection = 12 Number of street lights = 28 Schools and places of worships = 14 *India Census, 2001
  23. 24. Methodology Steps Listing of all known factors on the ground Analysing individual factors Compiling all the factors, i.e. hardware, labour/workforce, experts and energy sources under agreed guidelines/cooperative model Local entrepreneurs and engineers and other cooperative members will report on the first operational test of the system Final decision on the viability of the work will be made The modifications needed will be carried out which should lead to an improvised final operational test
  24. 25. Methodology
  25. 26. Methodology The second test will be the final test, even if the test did not match the expected improvement. This is simply to confirm whether or not further changes will be needed before the final operational mode has been finally reached To proceed with the supplying of electricity to the local community and no further steps need to be taking, then this stage will lead to the conclusion of the work. If on the other hand further work will be needed, then stage 7 will be repeated The final stage where the overall activity of the project and the form of a cooperative model will be part of the daily business activity of the local community Feed back on the progress of the project will be part of the quarterly report produced by the management responsible for the daily operation of the Solar-PV station to the cooperative executive committee
  26. 27. Methodology <ul><li>Importance of loads, cost/prices, human resources, taxations, grants and other relevant factors under three main headlines </li></ul><ul><li>Summary </li></ul><ul><li>Regulations/laws & Environmental/Social </li></ul><ul><li>aspects </li></ul><ul><li>2. Technical aspects </li></ul><ul><li>3. Commercial aspects </li></ul>
  27. 28. Conclusion Forming cooperative organisations Listing all the factors/cooperative model Factors are connected to regulations, environment, technical and commercial level/values
  28. 29.