Project Closure Report
Description of Pilot Projects Receiving MNRE Grant Support
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4.2Description of Pilot Projects Receiving MNRE Grant SupportThis section provides a short description of each of the projects that were approved by the PEC to receive funding support of MNRE and UNDP. Before the project end, in December 2012, a visit was made to the site locations of four projects to assess the progress of pilots being implemented by project proponents. These project proponents were sanctioned grant by MNRE in April 2012 after a three-stage project selection process. The project locations visited were identified in consultation with MNRE and covers those projects which have made progress since the grant was sanctioned.
Project Brief HPPI has proposed to install 41 micro-grids of capacity powered by Solar Photovoltaic (SPV) system in villages of four Unnao, Hardoi, Badayun, Sant Ravidas Nagar districts. Each micro-grid will serve maximum 40 households. The micro-grids (MG) will be owned and operated by local entrepreneur who will invest 65% of the total cost of the grid. The remaining 35% cost will be covered by MNRE through the grant support provided to HPPI. Business Model Supply Chain Mechanism for supply of grid components – HPPI has been working in the project area for the past two years. They found that with nearly 300 sunshine days, the prospects of SPV based micro-grid operating for six hours per day, is a viable option and has good prospects of meeting the light requirements in village household. To secure uninterrupted power supply even on cloudy days, the grid would run on batteries which are integral part of the MG. HPPI’s experience of installing solar charging stations for solar lanterns in the same area under a different project has yielded good results in terms of acceptance of the technology and revenue model which is described below. The MG has been designed by Minda NexGenTech and it is also engaged in providing technical support in the operation of the grid. Operation and Maintenance Each micro-grid is owned and operated by a local entrepreneur from the village. HPPI is providing handholding support for the entrepreneur and providing MNRE which provides the 30% subsidy to the overall cost of the micro-grid. HPPI is providing advanced training for four technical resource persons who are engaged with HPPI in the former project in the same area. Entrepreneurs are trained by the resource persons to operate the MG in the best possible way. Revenue Model HPPI has prepared the financial estimates for two-years under different scenarios. Based on the assessment, it is envisaged that the project cost recovery occurs in two to three years. The charges levied by the entrepreneur are mentioned below:
Sustainability The entrepreneurship based model with involvement of community and revenue model is viable. Scalability Potential There is an unmet demand for solar powered illumination in vast areas of Uttar Pradesh as well as in other states due to prolong power outages. It is very likely that this project will generate demand in the villages where the project would be implemented and also in the neighbouring villages. It is very likely that the project could be scaled up in the implementation area and possibly replicated in other states. Project Progress Figure 240W solar panel powers mini grid in Ruknapur village, Distt. Hardoi (U.P.) On December 19, 2012 a visit was made to Humana People to People India’s (HPPI) project sites in village Atardhani, Bangarmau in Unnao district and villages Bhulbhawanipur in Mallawan block and Ruknapur Madhuganj block, district Hardoi in Uttar Pradesh. This project of setting up microgrids is being jointly implemented by HPPI and Minda NexGenTech Limited. The objective of the project are: 
The mini grid consists of (a) a Solar panel with capacity of 240 watts; (b) Solar charge and grid controller with timer; (c) Battery designed as per the requirement; (d) Distribution point with main switches; (e) Aluminum wiring of 1,000 metre for power distribution to the houses. Figure Grid Controller (grey) and distribution point (yellow) at Atardhani village, Distt. Unnao (U.P) A meeting with local entrepreneurs and users of this min-grid was held for feedback. While the users pay a monthly charge of Rs 100, they are satisfied with the LED based two lights and a mobile charging point that are provided to the subscribers. The entrepreneurs mentioned that the main issue is the requirement of having 30 to 35 subscribers ready for installing the system which is becoming a major weakness of this system. A discussion on the option of downsizing the grid was held with Mr. Brejesh Kumar of Minda who joined the HPPI team during the visit. He confirmed that Minda is working out the technical and economic feasibility of a mini-grid with 20 subscribers. 
Based on the joint discussion with local entrepreneurs, HPPI and Minda it was felt that the team may try out a mini-grid of 20 subscribers, which apparently has greater demand in the region and also it is much easier for entrepreneurs to set up and operate. Interaction with entrepreneurs at other two villages provided feedback on customers satisfied with their lighting requirement being met through mini-grid and also brought out the challenge of expanding or installing new grids due the large base of nearly 40 ready subscribers. It was therefore felt that a scaled down version of the micro-grid with 20 subscribers would have greater acceptance and need to be pilot tested under this program.
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