Abstract
Bringing modern electricity services to more than 450 million South Asians without access to grid electricity calls for a variety of innovative mechanisms. Since off-grid electricity implementation is ipso facto decentralized, many have been able to experiment with different business models for implementation. This chapter examines various business models in rural electrification with a focus on off-grid models using clean sources of energy. The chapter also aims to understand how different organizations have modeled their off-grid and rural electrification programmes and what have been successful and challenging about each model. Given the vastness of the literature available on various electrification models adopted across the world, the review will necessarily be a partial one, however an attempt has been made to capture the models prevalent in the South Asian region and their essential features.
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Notes
- 1.
We are defining the business model as an overall framework within which the project operates including the choice of technology, financial viability of the model, institutional set up, role of various stakeholders and the regulatory & policy framework. In a business model, the underlying motive for an investor is profit which assumes central importance, however in a participatory model the underlying objective is to create access to electricity through sustainable partnerships with the local communities.Participation of the communities is the centrepiece in a participatory model.
- 2.
Palit and Chaurey (2011).
- 3.
Palit and Chaurey (2011).
- 4.
Vanderpuye (2010).
- 5.
Palli Bidyut Samiti is the Bengali name for rural electric society.
- 6.
As per Bye-Laws, the PBS shall at all times be operated on No Loss-No Profit basis for the mutual benefit of all its Members and non-members alike and is expected to repay all indebtedness on schedule.
- 7.
Cruickshank and Yadoo (2010)
- 8.
NACEUN’s responsibilities include (1) national level policy advocacy, (2) capacity building, technical training, administrative and management support for its member organizations, (3) institutional development, and (4) research and promotion of some renewable technologies (for example, biogas and improved cooking stoves.
- 9.
http://naceun.org.np/about-us/what-we-are-doing.html, accessed on 20th Dec 2010.
- 10.
One US dollar is equivalent to 50 Indian rupees in 2012.
- 11.
For e.g., the contract duration of Enzen Global in Orissa is five years.
- 12.
ESCO can be a public or a private company.
- 13.
ESCOs are operating in the districts of Nyimba, Lundazi and Chipata in Eastern Province of Zambia.
- 14.
Ariyabandu, R, Upscaling Micro hydro a Success Story
- 15.
ITSL is a development charity based out of United Kingdom. It has now been rechristened as Practical Action.
- 16.
TERI 2009a
- 17.
Gram Sabha is a body consisting of all registered voters of a village within the area of a village Panchayat. It is a forum that ensures direct, participative democracy. It offers equal opportunity to all citizens including the poor, the women and the marginalised to discuss and criticize, approve or reject proposals of the Gram Panchayat (the executive) and also assess its performance.
- 18.
Best (2011).
- 19.
www.ashdenawards.org/winners/husk11, last accessed on 30th October 2011.
- 20.
www.ashdenawards.org/winners/selco07 accessed on 12th February 2011.
- 21.
IDCOL 2010
- 22.
TERI 2009b
- 23.
Supply-chain refers to the actors in the supply chain of RETs such as manufacturers, dealers, equipment importers etc.
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Appendix 1 Supply Model Matrix for Electrification
Appendix 1 Supply Model Matrix for Electrification
Grid | ← Technology → | Off-grid | |
|---|---|---|---|
Grid extension | Village mini-grid | Single user system | |
Small, decentralised private (for-profit) large, central | Small grid reseller (India) | Diesel or hydro mini-grid (Cambodia, Ethiopia) | SHS (Honduras, Kenya, Indonesia, Sri Lanka) |
Hydro mini-grids selling to local customers and to the main grid (China, Nicaragua) | |||
PV/wind/diesel water pumping (Brazil, Chile, Mexico) | |||
WHS or pico hydro (Argentina, Mongolia, Nepal) | |||
Formerly isolated mini-grid now connected to grid, (Cambodia) | |||
Privatized concessionaire extends grid (Argentina, Chile, Guatemala, Uganda) | SHS (Bangladesh, Bolivia, Morocco, South Africa) | ||
Cooperative Non-governmental other community organizations | Cooperative finances grid extension (Costa Rica, Bangladesh, US) | Multi-service Coop with diesel or hydro micro-grid (Bangladesh, Bolivia, Philippines) | Agricultural Coop using diesel genset |
Small “community gateways”(Bolivia) | Community micro-grids (Brazil, Cambodia, Honduras, Indonesia, Nicaragua, Sri Lanka) | Diesel genset or renewable energy to power a school, clinic, community centre, etc. | |
Small, decentralised public large, central | Small state-owned utility extends grid (Colombia, Brazil) | Municipal diesel or hydro mini-grid (Bolivia) | |
State utility extends grid and sells at retail (Botswana, Mozambique, Thailand, Tunisia) | Residual state-owned isolated diesel mini-grids with fuel subsidies (Nicaragua, Cambodia) | SHS (Mexico) |
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Krithika, P.R., Palit, D. (2013). Participatory Business Models for Off-Grid Electrification. In: Bhattacharyya, S. (eds) Rural Electrification Through Decentralised Off-grid Systems in Developing Countries. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-1-4471-4673-5_8
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