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Titel:
Providing electricity to remote villages
 
Auteur(s):
Coninck, H.C. de; Kets, A.; Vries, H.J. de; Dinesh, K.J.; Maithel, S.; Mohanty, P.
 
Gepubliceerd door: Publicatie datum:
ECN Beleidsstudies 1-7-2005
 
ECN publicatienummer: Publicatie type:
ECN-C--05-037 ECN rapport
 
Aantal pagina's: Volledige tekst:
67 Download PDF  (1044kB)

Samenvatting:
The Ministry of Non-conventional Energy Sources (MNES) aim to provideelectricity to 25,000 remote un-electrified villages in India through renewable energy sources and distributed genera-tion adopts the key policy instrument of capital subsidies and capacity building of local organizations. National and international experience shows, however, that this model would not suffice to make the electrification programme succeed in the long run. This study aims to evolve implementation models that would lead to sustainability. It was assumed that MNES in its policy aims wants to reach the poorest of the poor in the Indian villages, so the tribal villages were the aim of the study. The implementation model that the Government of India currently aims to use for electrifying its remote villages with renewable electricity is inappropriate for a large number of the target villages. The planned uniform policy of capital subsidies of 90 to even 100% will over-subsidise many and under-subsidise the most needy. This conclusion stands out after a detailed survey in a number of poor and remote tribal villages in Orissa, and consultation of a number of stake-holders. Implementation models should be more tailor-made in order to actually bridge the gap between costs and willingness to pay and to facilitate the reduction of the gap itself over time. The proposed implementation models recognize that providing electricity to remote villages is signifi-cantly more expensive than providing electricity to urban areas and grid-connected villages. Three types of implementation models for three types of villages, varying in economic situation, on which the policy should be tailored, were distinguished:

I. Villages with middle income families where ability to pay exists or will get built up with just the provision of electricity. The private sector would make investments into village electrification projects with government providing tariff assurance that will diminish over time and eventually stop.

II. Villages with low-income families where potential for increasing economic activity is very clear and can be realized with provision of electricity and business development services. The government would provide capital subsidies and diminishing revenue subsidies for a limited period of time. Private sector will take up responsibility for operation and maintenance and provide business development services for increasing economic activity including making crucial investments.

III. Villages with low-income families where potential for increasing economic activity is unclear. Thus, electricity has to be provided to improve the quality of life and more work has to be done to develop the potential for increasing economic activity. The government would provide capital subsidies and revenue subsidies for extended peri-ods. It is hoped that the presence of private sector in the village will lead to develop-ment of potential for increasing economic activities. Subsidies could be re-duced/terminated eventually.

The models above provide for a more balanced approach to the enormous diversity in villages and income levels in the portfolio of villages in the Indian village electrification programme. The challenges posed by ownership, affordability and post-commissioning provisions are addressed in a better way. The results of this study will be discussed with the relevant policymakers in the Government of India.


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