Project Closure Report
Emerging Energies Private Limited
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Emerging Energies Private LimitedProject Brief Emerging Energies Private Limited (EEPL) has proposed to set up pilot projects of its hydro kinetic technology for village electrification in two villages in Rae Bareilly district of Uttar Pradesh. The mission of the pilot project is to demonstrate a full business model utilizing technological innovation that harnesses the velocity of water to generate electricity. EEPL has surveyed the area and found a total existing demand of 48kW. To meet some of the demand, EEPL proposed to set up a 2 x 15kW plant which will service over half of the customers in demand and then add additional 20kW after the first year of successful operation. Business Model Supply Chain Mechanism – The villages proposed to be covered by the project are located directly on the Sharda feeder canal adjacent to an aqueduct on the canal system. Based on the discharge data, the Sharda feeder canal is a perennial channel. According to the local irrigation authorities at least 76m3/s of discharge amount is available over 94% of the year. The existing designed water velocity is 3.8 m/s which match with the required velocity for electricity generation with this technology as per EESL estimates. Operation and Maintenance The power plant will be headed by a site engineer holding the full charge of the power plant and reporting directly to the head office of EEPL. The site engineer will be supported by a head office engineer on all technical matters. The staff will take care of the operation, maintenance and record keeping for plant. The plant O&M organization will be headed by a head office manager who will responsible for both operation and maintenance functions on a day to day basis. Revenue Model The pricing per 50 watt block is scheduled at Rs 100, a price point established through the survey is affordable for the 80% of consumers (300 households) that have agreed to purchase the power. In the 30kW installation there will be 600 blocks of 50watts. At Rs 100, revenue collection of Rs 60,000 per month is expected and responsibility to collect the monthly revenue will be with village panchayats. The surplus electricity will be sold to local enterprises during the low demand hours of the day and an additional Rs 24,000 will be generated from this power supply in the project area. Project Cost
Sustainability The success of this business model depends on the success of the new technology which needs to be proven through this pilot project. Scalability Potential It is estimated that 3-5% of the 40,000 un-electrified villages may be electrified with the proposed technology. That indicates the technology has potential to provide power for illumination purpose in potentially 2,400 to 4,000 villages.
Project Brief Small Scale Sustainable Infrastructure Development Fund (S3IDF) has proposed to set up Urja (energy centers) which will be used to spread the awareness about RET as well as serve as point of sale of renewable energy devices, training of local people to manage sales and after sales maintenance. Villages and hamlets in the selected block of the district in focus would be examined for electrification status and reliability and feasible RET which can be sold by the energy centre. Suitable RET will be promoted and installed in the villages with an aim of economic and social development. Potential RET identified are SPV based lighting technologies and improved cook stoves for domestic and institutional use. Business Model Supply Chain Mechanism: The renewable energy sources are adequately available with 300 sushines-days in a year and average insolation 4kW per square meter. The project site location in Mohala block has 530 square kilometre of forest cover. The villagers in the block including residents of Mohala use fuel wood to meet the requirements for cooking. S3IDF will source the RET and cook stoves from MNRE approved suppliers. Operation and Maintenance RE device suppliers were not identified, however S3IDF will source the products from MNRE approved suppliers. The actual source from which supply will be obtained will be decided based on the prevailing prices at the time of procurement. For bulk procurement, S3IDF will follow competitive bidding process. Training in RET would be imparted to local SHG’s entrepreneurs who would manage the Urja Centre. Revenue Model The monthly expenditure of Urja center is estimated to be around Rs 27,150. If the sales margin is around 10%, it is expected that sale of Rs 5 lakh will provide net margin of Rs 50,000. In addition the Urja center can provide additional services based on the local requirement for income generation to meet its operating expenses. It is estimated that the sales of Rs 2.5 lakh will be achieved in the third year of operation. Financial Statement of a typical Energy Center for 5 years All figures are in Indian Rupees
Sustainability Although the village in the target area are electrified, the coverage and reliability of electricity supply is deficient. The households have traditional cook stoves for cooking meals and kerosene based lantern and wick lamps are used for lighting purpose during power outages. S3IDF estimates that approximately 500 households will require SPV based devices and improved cook stoves. The cost of the RET and improved cook stoves would be met from a small share by the buyer and the rest as loan from the local banking channel or NABARD. Scalability Potential Based on S3IDF’s experience, if the Urja Center functions successfully as envisaged, it will get wide publicity for its activity in the block and district and through all possible medium, then scalability potential is high. Project Progress Figure Energy Center operated by Women in Mohala, Chhattisgarh sells RET products and improved cookstoves to villagers in the Mohala block Figure Women Energy Center at Mohala, Distt. Rajnandgaon, Chattisgarh Visit to S3IDF’s project site in Mohala block, District Rajnandgaon, Chhattisgarh: A visit to the project location was made on December 13, 2012. S3IDF has been sanctioned financial assistance by the Ministry of New and Renewable Energy (MNRE) for setting up “Women Energy Centre” to create cluster of Carbon Free Zones in rural area of Chhattisgarh. This trip was undertaken with joint consent of MNRE and UNDP to gauge and record the progress of work carried out by the grant recipient. 
From the time the grant was sanctioned by MNRE on April 17, 2012, S3IDF team made several trips to Mohala block and district headquarter Rajnandgaon and interacted with government officials in these locations as well as with village councils (aka gram panchayat) and also locating space for a project office and for setting up Energy Center. The efforts culminated in inaugurated the Energy Center on June 15, 2012 which is run by two women from Mohala. The progress during the months of July and August was slow due to heavy monsoon rains and activities started pickup from September onwards. Since the setting up of the centre, S3IDF’s team from Hyderabad has done extensive work with local panchayat (village councils), sarpanch (elected head of village councils), Block Development Officer of Mohala block, district Collector of Rajnandgaon to create the awareness of the energy centre, ACE project as well as promoting solar based lighting products and improved cook-stoves. As per the sales records S3IDF has accomplished the targets of the third milestone set under the MNRE sanction and the project is on-track to achieve its targets in the first quarter of 2013. The Mahila Urja Center or the Women Energy Center is run by Ms. Nisha Thakur and Ms Parvati Joshi both of Mohala. The center functions from morning 8am until sunset and receives curious visitors making inquiries and buyers from surrounding villages as well as adjoining block of ‘Chowki’. The center has display of small SPV based study lamp, street light, hawker light and improved cook-stove for households. Ever since, the Urja center has received order for supplying street light from Block Development Office, Sarpanch, the news of center and products available has spread in the remote villages in the interior parts which we were cautioned from visiting due to security reasons. Figure The Solar street light installed by S3IDF outside the Block Development office provides illumination for local resident’s leisure activities after sunset Along with S3IDF staff Ms Shehnaz Parveen and Amit Deshpande, a visit was carried out to four villages where S3IDF has sold (and installed) street lights to ‘panchayats’ (village council) and installed them at a location decided by the panchayat. The villages visited were Dhobeydand, Kadey, Mobhatta, and Gotatola in Mohala block. Interaction with villagers in these locations and also village ‘panchayat’ members and head of village council (aka ‘sarpanch’) who have bought the systems provided useful insights. All the villages visited have access to gird electricity with houses having metered connection. However, there is no street light operating from grid electricity. Consequently the sarpanch in each of these villages used their discretionary development funds, with all requisite approvals, to install a street light. Three months later the villagers are pleased with the decision to installation as it provides sufficient illumination for villagers to gather every evening and socialize while children play till later hours every evening, which was not the case in the past. Few have bought solar lighting systems which helps them to continue with their work during the case of power outages. What is of interest and an important learning is the fact that while Chhattisgarh is a power surplus state and the instance of power interruptions are of short duration, people are willing to spend some money to buy solar based lighting products, in some cases with loan from local banks, so that they can completely move away from the use of kerosene lanterns. Given the progress of the work, S3IDF in the coming months needs to focus its attention on imparting training to local persons for carrying out maintenance of the systems. 
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