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Mini-Grids for Rural Electrification of Developing Countries: Analysis and Case Studies from South Asia PDF

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Green Energy and Technology Subhes C. Bhattacharyya Debajit Palit Editors Mini-Grids for Rural Electrification of Developing Countries Analysis and Case Studies from South Asia Green Energy and Technology For furthervolumes: http://www.springer.com/series/8059 PhotocreditsDebajitPalit Subhes C. Bhattacharyya Debajit Palit • Editors Mini-Grids for Rural Electrification of Developing Countries Analysis and Case Studies from South Asia 123 Editors SubhesC. Bhattacharyya Debajit Palit DeMontfortUniversity The Energyand Resources Institute Leicester New Delhi UK India ISSN 1865-3529 ISSN 1865-3537 (electronic) ISBN 978-3-319-04815-4 ISBN 978-3-319-04816-1 (eBook) DOI 10.1007/978-3-319-04816-1 Springer ChamHeidelberg New YorkDordrecht London LibraryofCongressControlNumber:2014939387 (cid:2)SpringerInternationalPublishingSwitzerland2014 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purposeofbeingenteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthe work. Duplication of this publication or parts thereof is permitted only under the provisions of theCopyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the CopyrightClearanceCenter.ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Foreword Globally,therearestill1.3billionpeoplewholackaccesstoelectricity.Over85% ofthepeoplewithoutelectricityaccessliveinruralareas.Morestrikingly,almost 40 % of these people are from South Asia, especially Bangladesh, India and Pakistan.Thesenumberswillnotchangesubstantiallybytheyear2030unlessnew strategies and intensified efforts are made at the national and international levels. Takinguptheimportanceofenergyissuesforsustainabledevelopment,theUnited NationsGeneralAssembly(UNGA)hasdeclaredthedecade2014–2024tobethe Decade of Sustainable Energy for All, underscoring the importance of energy issues for sustainable development and for the elaboration of the post-2015 developmentagenda.TheUNGAresolutionstressedtheneedtoimproveaccessto reliable, affordable, economically viable, sociallyacceptable and environmentally sound energy services and resources for sustainable development. The World Energy Outlook 2011 stresses the fact that to achieve the universal electrification objectivebytheyear2030,intermsoftechnologychoice,gridextensionwillcater to30%ofthepopulationtobecovered,whereasthebalance70%willbeserved by mini-grids or off-grid systems. As individuals, communities, policy makers and investors, we can all do something about this dismal situation. In TERI, we took the lead and initiated a major global effort in 2008, called Lighting a Billion Lives, which had impacted morethanonemillionlivesofpeopletilltheendof2013throughprovisioningof various types of decentralised energy interventions. New ways are also being foundbymanystakeholderstomakeoff-gridrenewableenergytechnologiesmore affordable for the poor and to bring electricity to households, communities and enterprises in far-flung areas where the grid has either not reached, or power supplied is erratic and unreliable. This edited volume, which has been developed as part of the project, Off-grid Access System in South Asia, is an effort by the authors to contribute to this discourseonsustainableenergyforallandassistinscaling-upofthedissemination ofdecentralisedenergytechnologiesinasustainablemanner.Thisresearchproject specificallyfocusedontheSouthAsianregion,whichcontinuestobeplaguedwith lack of access to clean and sustainable energy supply. The multi-disciplinary researchteamofthisprojectfromuniversitiesandinstitutionsinIndiaandtheUK have been working extensively over the past four years—in both analytical work v vi Foreword as well as documenting the lessons learnt and best practises established—and has compiledthisvolume.Theaimwastohighlightthesocio-technical,economicand governance-related lessons from various mini-grid projects in South Asia and to share the state-of-art knowledge and research outcomes with the wider research and practitioner community. I believe this volume will prove to be a valuable addition to the literature on rural energy initiatives and will assist in promoting mini-grid and off-grid elec- trification efforts and act as an important contribution to the United Nations’ Decade of Sustainable Energy for All. R. K. Pachauri Director General, TERI Preface Access to sustainable energy for all remains an important topic going by the current discussions at the international level. Globally, there is no universal approach to the provision of access to electricity and a number of factors and actors determine what approach would be most suitable for a given community. Thiseditedvolumeisanefforttocontributetothisdiscourseonsustainableenergy for all and forms part of the dissemination activity of a Research Councils UK funded project on off-grid electrification, called OASYS South Asia, which is a collaborative research work of five partner organisations, namely De Montfort University (DMU), Manchester University, Edinburgh Napier University from UK, and The Energy and Resources Institute (TERI) and TERI University from India.Theconsortiumhassince2009undertakenasignificantamountofresearch on rural electrification, especially off-grid electrification, in South Asia. Based on this work, it has identified mini-grid-based rural electrification as one of the options for extending the electricity access in developing countries. The project has also undertaken a set of demonstration activities in India to showcase alter- native ways of delivering electricity in rural areas through mini-grids and to developabetterfirst-handunderstandingofthechallengesindoingso.Thisedited volumebringstogetherstudiesandresearchcarriedoutbytheconsortiumtoshare the knowledge with the wider research and practitioner community. This volume contains 15 chapters divided into two parts: Part I provides the background understanding of mini-grids while Part II provides seven case studies from South Asia covering different countries, technologies, and business models. Following the multidisciplinary focus of the project, the book covers various dimensions relevant for any mini-grid-based electricity supply. It also provides practicalguidelinesfordesignandimplementationofmini-gridprojectsalongside more academic research studies. We hope this mix of presentation will impact a wider section of the interested readers. Theworkreportedherehasbeendiscussedinternallyandinvariousworkshops organizedaspartoftheresearchactivity.ThesewereheldinDelhi,Bhubaneswar, and Leicester between 2012 and 2014. The chapters have thus benefited from the inputsandcommentsofalarge numberofparticipantsfromtheacademia aswell as those involved in practice with mini-grid-based electrification and their financing.Apartofthecontenthasappearedinvariouspeer-reviewedjournalsas well. These have been appropriately acknowledged in the relevant chapter. vii viii Preface Astheeditorsofthevolume wewouldliketothankallthecontributorstothis volumefortheircontinuedsupportandhardwork.Weareparticularlythankfulto the stakeholders who participated in our case studies and provided valuable insights. We would like to thank the reviewers of the journals who provided valuablecommentstoimprovethequalityofthework.WealsothankElsevierfor allowingustoreusethematerialspublishedintheirjournals.WealsothankTERI, New Delhi, India and Practical Action, UK for allowing us to use their diagrams here. We are also grateful to our respective institutes, DMU and TERI, for encouraging us to edit this volume. Despite of all the support from different quarters, errors, if any, are ours. Wearealsoindebtedtotheworkshopparticipantsforsharingvariousthoughts thathaveenrichedourexperience.ThedemonstrationprojectinOdisha(India)has benefitedfrom the supportofa large number ofindividuals, toomany tomention here but we are thankful to them for their continued support, without which the work could not be taken forward. We are grateful to the funding agencies Engi- neering and Physical Science Research Council and Department of International Development of United Kingdom and Rural Electrification Corporation, Govern- ment of India for their support to this initiative. We also thank the publisher—Springer for agreeing to publish this volume despite the specialized nature of the work that still faces limited academic attention. We hope this volume will prove to be a valuable addition to the literature on rural electrification and will help to promote mini-grid-based sustainable electri- fication solutions worldwide. We believe that it would benefit researchers and practioners,aswellasdonorsandotherstakeholdersinvolvedinpolicy-makingin enhancing electricity access in rural areas of the developing world. Last but not the least, we would like to thank our respective families: Subhes thankshisspouse(Debjani)anddaughter(Saloni)whileDebajitthankshisspouse (Dipanwita)anddaughter(Roshni)fortheirsupportandcooperationincompleting this work over the winter of 2013–2014. March 2014 Subhes C. Bhattacharyya Debajit Palit Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Subhes C. Bhattacharyya and Debajit Palit Part I Mini-Grid Concepts and Challenges Suite of Off-Grid Options in South Asia. . . . . . . . . . . . . . . . . . . . . . . 11 Subhes C. Bhattacharyya, Debajit Palit and V. V. N. Kishore Technical Aspects of Mini-Grids for Rural Electrification. . . . . . . . . . 37 P. J. Boait Smart Design of Stand-Alone Solar PV System for Off Grid Electrification Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Parimita Mohanty and Tariq Muneer Analytical Frameworks and an Integrated Approach for Mini-Grid-Based Electrification . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Subhes C. Bhattacharyya, Arabinda Mishra and Gopal K. Sarangi Demand Management for Off-Grid Electricity Networks . . . . . . . . . . 135 P. J. Boait Business Issues for Mini-Grid-Based Electrification in Developing Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Subhes C. Bhattacharyya Part II Case Studies Approach for Designing Solar Photovoltaic-Based Mini-Grid Projects: A Case Study from India . . . . . . . . . . . . . . . . . . 167 K. Rahul Sharma, Debajit Palit, Parimita Mohanty and Mukesh Gujar ix

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