The MNRE through its schemes
like the Village Energy Security Programme (VESP) and the Remote Village
Electrification Programme (RVEP) plays a significant role in remote
rural electrification. The RVEP provides financial support for
electrification of those remote unelectrified census villages and
unelectrified hamlets of electrified census villages where
grid-extension is either not feasible or cost effective and are not
covered under RGGVY. Presently the policy is under review and some
changes have been proposed to the scheme; Mainly a load of up to 58 W /
HH will be allowed and even villages which are electrified but have
supply less than 6 hrs/day would be eligible under this scheme. Another
proposed change is the way in which the developers would be selected,
which would be on the basis on competitive bidding.
With regard to VESP, the focus
was to provide all energy needs through locally available biomass
resources however the program had limited success. The MNRE annual
report (2011-12) indicates that no new VESP projects will be taken up in
the 12th Plan period.
Under the RGGVY, the Ministry
of Power (MoP) also launched the Distributed Decentralized Generation
(DDG) scheme in 2009. The focus initially was on remote villages and 90%
subsidy was provided for setting up electricity generation (either from
conventional or renewable resources) and a corpus of 540 cr was set
aside. However not many DDG projects have come online due to a variety
of reasons . The 12th plan document of MoP has gone ahead and
recommended that “Establishment of DDG projects in Grid connected areas
also where adequate power supply is not available. Setting up of
Decentralized Distribution Generation (DDG) projects based on Viability
Gap Funding (VGF) through competitive bidding process.” There were
amendments to the original guidelines published on this scheme on 5th
January, 2011 and 17th March, 2011. Some proposed changes to the DDG
scheme include the possibility of grid integration of such projects with
excess electricity being fed into the grid and electricity being
withdrawn from the grid in time of shortages. With the original
provision of a DDG scheme in villages where grid connectivity is either
not feasible or not cost effective, it was amended that subsidies can be
provided for the electrification of villages that get less than 6 hours
of electricity a day.
To address most of the
challenges in promotion of DRE based micro grid models, the Forum of
Regulators (FoR) have proposed two new business models which could be
implemented as new regulatory mechanisms. The first is called Off-grid
Distributed Generation Based Distribution Franchise (ODGBDF) model and
it keeps the off-grid consumer tariffs equitable with the grid-connected
consumers and yet ensures sufficient returns on investments to
developers. The second mechanism entails allowing off-grid projects to
avail Renewable Energy Certificates under the CERC’s REC mechanism and
seeks to fill in the viability gap through the sale of such certificates
.
Policy plays an important role
in the effectiveness and sustainability of DRE projects. Hence with the
changing environment, the learning’s from field experiences are being
incorporated in policy formulation to increase their efficacy. Given the
dynamic DRE environment in which these policies are being framed, there
has been a continuous learning and fine tuning process, which leads to
an evolved policy framework.
Bibliography
ABPS Infrastructure Advisory Pvt Ltd. (Nov,
2011). Policy and Regulatory Interventions to Support Community Level
Off-Grid Projects.
Ministry of New and Renewable Energy (MNRE), Government of India. (Febuary,
2011). Strategic Plan for New and Renewable Energy Sector for the period
2011- 2017.
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