Page 13 - Tehelka Issue 14E

POWER

No gainer, no taker nancial prosperity through better out- electricity access despite the massive these developers. After all, they are ness comes with inherent cost. “UP ki

doing to an extent what the govern-
majboor hai, mini-grids zaroori hai (Mini-
put in the business.
growth in electricity infrastructure in
grids are must for UP’s growth),” said a
ment should be doing and so the mor-
All is good except for the fact that
recent years.
for UP mini-grids this prosperity quotient comes at a very the first state in the country to imple- ally bound government cannot put developer not wishing to be identified.
Incidentally, Uttar Pradesh became
high price. The rural consumers pay
hurdles in the way of those in the mini-
Severely power starved, rural folks
a hefty price per unit than the urban
ment dedicated mini-grid policy and
grids market.
in the state have to pay the price for
folks. More so, even the tariff rates per
Defending these high charges one
ply in his household. Mini-grids and so-
access to power at affordable rates, pro-
unit are not fixed that vary from 20 per regulations. The object was to ensure of the developers stressed that remote- quality and uninterrupted power sup-
Tweaks in the existing policy mechanism and the business/ unit and can go up to as high as 150 per viding viable exit options and encour- lar home systems is the only solution, at
revenue model can result in mini-grids providing adequate, unit for 6-8 hour power supply. In many aging development of standard distri- least for the next decade.
cases, quality control is also in doubt.
bution networks.
As the electricity crunch is likely to
reliable and affordable electricity in rural of Uttar Pradesh. This A report by Centre for Science and “Unfortunately these have had little Interestingly, persist, there is a strong chance of mini-
will encompass setting minimum standards in terms of hours Environment (CSE), an environmental impact as no developers have set up Uttar Pradesh grid development in the state over the
next 5-10 years. The issue is how and
projects under the state policy,” said the
research and advocacy organisation
of electricity supply, reasonable tariffs for consumers and viable on mini-grids in Uttar Pradesh clearly CSE report. became the how much the UP government can get
operational and commercial terms of agreement for developers, said that it is unlikely that Prime Min- The mini-grid developers know that first state in them to follow the rules and reduce
writes KULSUM MUSTAFA ister ambitious Sahaj Bijli Har Ghar they have just a decade to do business in the country tariff for the poor rural consumers to
Yojna (SAUBHAGYA) or Deen Dayal the state and that is why they too are in breathe easy. The report suggests that
Upadhyaya Gram Jyoti Yojana will be a hurry to draw maximum profit from to implement UP makes Policy changes to provide
ith nearly 1.42 crore promise to provide quality, accessible able to give “dedicated push to improve their business. So the poor rural power subsidies to developers in order to sup-
households in rural and uninterrupted electricity supply, village electrification for the entire 1.4 consumer is totally powerless and at dedicated port the transition to mini-grids, sug-
Uttar Pradesh (UP) still ensuring a growth graph in terms of crore people.” The report said that it will the mercy of the mini-grid promoters. mini-grid policy gested by CSE. It also recommends tar-
living without electric- quality life and business. Mini-grids en- require from seven to ten years before Realising it is in a no-win situation, iff rates similar to those being charged
W ity connections, re - sure lighting houses, smooth running of this can be done. the government is also rather soft on and regulations by DISCOMS in rural areas
newable energy models like mini-grids mobile chargers, fans in the scorching The CSE recently held a round-table It is clear that while UP has to give
and solar home systems appear to be heat, right up to running refrigerators, meeting in Lucknow to discuss the role big sops to the mini-grid developers so
the ideal solution. In fact, renewable computers and of course, some busi- of mini-grid electricity generators in that they, in turn, reduce the financial
energy models seem like an oasis in ness gadgets. Mini-grids are proving addressing the energy access challenge burden through reducing tariffs for the
the desert as these are addressing the instrumental in not only improving the in rural Uttar Pradesh. According to a RURAL U.P. POWER STATISTICS rural consumer of power.
woes of the power consumers in vil- condition of villages but, at the same report, one-fifth of the rural popula- State government’s attempt to
lages. These privately run power packs time, helping rural folks to increase fi- tion of India continues to live without regulate tariffs and improve the sup-
♦ Currently, 1.42 crore households are living without ply of mini-grids through its mini-grid
electricity connections. policy in February 2016 has found no
♦ Rural Power woes not likely to be settled till a decade. takers and has thus failed to achieve its
objectives.
♦ stringent service standards for mini-grid systems According to the CSE report, not a
single developer seems to have availed
♦ Tariff similar to what is charged by DISCOMS in the the state subsidy or is operating a pro-
rural areas. ject under its ambit.
♦ Tweaks urgently needed for the policy to be functional. “This is because it fails to address the
developers’ concerns of project viability
♦ Subsidies for developers — for generation and at low tariffs and commercial uncer-
distribution asset development. tainties,” said the CSE report.
♦ Mini-grids are fed from small renewable energy units Tweaks in the existing policy mecha-
— mostly solar or biomass-based. nism and the business/revenue model
♦ Unregulated mini-grid sector development can result in mini-grids providing ad-
equate, reliable and affordable electric-
♦ Consumers have to pay very high tariff rates — 20 — ity to all. This will encompass setting
150 per unit for 6-8 hours of power supply. minimum standards in terms of hours
of electricity supply, reasonable tariffs
♦ Despite government claims, power supply remains for consumers and viable operational
limited to 10-16 hours and 2 to 4 hours during peak and commercial terms of agreement
demand hours. for developers.
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TEHELKA / 31 JULY 2018 13 WWW.TEHELKA.COM

12-13 Kulsum Mustafa.indd 2 7/17/2018 8:08:33 PM 12-13 Kulsum Mustafa.indd 3 7/17/2018 8:08:41 PM