Rural Electrification Cooperative Model (Solar-PV) in Madhya
Pradesh
Dr. Najib Altawell
Center for Energy, Petroleum and Mineral Law and Policy (CEPMLP)University of Dundee, Dundee DD1 4HN, Scotland, UK
11 December 2011
Rural Electrification Cooperative Model (Solar-PV) in Madhya
Pradesh
Dr. Najib Altawell
Center for Energy, Petroleum and Mineral Law and Policy (CEPMLP)University of Dundee, Dundee DD1 4HN, Scotland, UK
11 December 2011
Agenda
Introduction
Cooperative
Cooperative Model
Conclusion
Agenda
Introduction
Cooperative
Cooperative Model
Conclusion
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Electrification
The village/Town* 1.Influence of the geographic endowment on the electrification 2.Influence of the State Electricity Boards (SEB)3.Influence of the state’s general development and structure 4.The main grid5.A rural village (higher priority = states that depend on the agriculture sector) 6.Higher cost = large number of villages = longer transmission lines and interconnection 7.Positive effect = irrigation, crop processing and storage are part of the working village environment where electricity demand will be high. 8.The existence of electrification within regions adjacent to a village, electrification of the village would be part of the future electrification by the state
*(Andreas K., 2006)
/
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Cooperative
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 http://www.co-operative.coop/corporate/widermovement/
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Cooperative
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
/
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Cooperative
Robert Owen (1771 - 1858)
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Cooperative
Cooperative Seven Principles (Rochdale Principles)
Voluntary and Open MembershipDemocratic Member Control
Members’ Economic ParticipationAutonomy and Independence
Education, Training, and InformationCooperation Among Cooperatives
Concern for Community
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Cooperative
Rural Electric Cooperative by County, USA*
*Image source: Center for Cooperative http://reic.uwcc.wisc.edu/electric/
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Cooperative
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 http://www.nreca.coop/members/Co-opFacts/Pages/default.aspx
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Cooperative
Europe
India
Africa
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Energy Cooperative
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
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Energy Cooperative
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)
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Energy Cooperative
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)
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Energy Cooperative
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
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
aspectsThe town/village is located within the administered
part of Madhya Pradesh stateRecent data concerning the village/town are presently
available for the project
Energy Cooperative
Successful Cooperative Electrification
The size of the villageAccess to good roadsDistant to distribution network and/or villages nearby
already being supplied with electricityNumber of consumersNumber of established businessesNumber of rural industriesComparison of other similar work done in other
countries to the new locationAvailability of public facilities
Energy Cooperative
Guideline
Local ownershipCommunity participations
Suitable solar model Training
Devising method(s) for revenue collectionTariff agreement with the local authority
Establishing a committee (e.g. development and for major problems)
Energy Cooperative Hatod
District of Mandla (Madhya Pradesh state)
Geographical location is within 22° 48' 0" North, 75° 44' 0" 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
Energy Cooperative Statistics
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*
• Bhind (M) [Population: 153,752, Class - I]
• Ashoknagar (M) [Population: 57,705, Class - II]• Chitrakoot (NP) [Population: 22,279, Class - III]
• Gurh (NP) [Population: 12,450, Class - IV ]• Hatod (NP) [Population: 9,028, Class - V ]
• Sethia (or Sethiya) (CT) [Population: 4,559, Class - VI]
(Census of India, 2001). *(Census of India, 2001)
Energy Cooperative Data
a. The present population growth rate
b. 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
c. System cost (declining)
d. Bank lending interest rate: 4%
a. 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
Energy Cooperative Technical Aspects*
*Image source: Redrawn and edited from NASA Science, 2010)
Energy Cooperative
Hatod’s Energy Data*
Estimated power to be consumed = 1.1 MWPeak load = 8 KVNumber of household power connections = 1640Number of commercial power connections = 40Number of Industrial power connection = 14Number of agricultural connection = 12Number of street lights = 28Schools and places of worships = 14
*India Census, 2001
Methodology
StepsListing 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 systemFinal 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
Methodology
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 repeatedThe 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
Methodology
Importance of loads, cost/prices, human resources, taxations, grants and other
relevant factors under three main headlines
Summary1.Regulations/laws & Environmental/Social
aspects 2. Technical aspects
3. Commercial aspects
Conclusion
Forming cooperative organisations Listing all the factors/cooperative model
Factors are connected to regulations, environment, technical and commercial
level/values