1. Providing access to clean, reliable and affordable power to the poor in Bihar (India) through Solar Micro Grid Network Saurabh H. Mehta, India February 28 th 2013 Energy Simplified (Kyrion Technologies) Berlin, Germany Transition to Renewable Energies through Mini-grids MES: 2013 - Micro Perspectives for Decentralized Energy Supply

2. Rural Electrification in India: Current Scenario 26 % population : no access to grid electricity 35 % relies on kerosene for lighting (inefficient, unhealthy & unsafe) $2 billion/yr untapped market in off-grid distributed energy Av off-grid rural household spends 120 / month ($ 2.25) Very slow rate of electrification Technical & economical reasons Does not guarantee access to electricity Off-grid demand is unmet Use of kerosene, diesel & disposable batteries Market imperfections, creating opportunities for social ventures to provide solutions 2 Solar Micro Grid Network in India

3. India Kerosene Lighting Market More than 50% of the market in 4 States 3Solar Micro Grid Network in India

4. Electricity Scenario in Bihar (India) Statistics Population (3 rd /27) : 103 million ; 9%, Area (12 th /27): 94,163 sq km ; 2.8 % Per capita consumption: 95 units (National average: 717units) Transmission & Distribution Losses : 51% Villages electrified : 53 % Population with no access to electricity: 85 % Recent change in government Improved law and order Emergence of enterprises in various sectors Strong market opportunity for off-grid energy solution 4Solar Micro Grid Network in India

5. Finding Solutions 5Solar Micro Grid Network in India SolutionAdvantagesIssues Solar charging station Service model (maximum client coverage) Grant driven Lack of ownership (rental)- Maintenance Dependency on station Solar portable lights Ownership Independence Limited service Low incentives for sales team Solar home systems Satisfactory services Sales margin High capital cost Difficult to access finance

6. Lessons Learnt People are willing to spend 120 ($2.25 ) p.m. for meeting their basic lighting & mobile charging needs. Consistency in supply - directly linked to revenue collection Mistrust in RETs Poor after sales services by many suppliers Need for permanence 6Solar Micro Grid Network in India Not comfortable to pay upfront, but willing to pay per use Grid like solution required (maximum clients) Conclusion

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8. Solar Micro Grid (Design) Village level,centralized generation and distribution Reliable AC power supply to 175 HHs Training and employing local youth : O&M Village energy committee : governance Micro grids tailored to the specific needs 3 room lights and (six hours per night) Mobile phone charging Facility Owned by every HH Entertainment (inbuilt music player) 8Solar Micro Grid Network in India

9. Implementation Process IdentificationSocial ProcessInstallationTraining 9Solar Micro Grid Network in India

10. Setting up of Solar Micro Grid 10 Solar Micro Grid Network in India

11. Tackling Operational Issues Abuse of system Underground transmission and load checkers Securing of equipment in locked cabinets and hardware in a locked room. System Maintenance Train local people Regular visits by technical supervisors Monitoring Incentivizing local NGO Vs Remote monitoring Regular payment collection Currently being addressed by incentivizing operators Manual switches Vs Software locks Weather issues (Insufficient charge in batteries) Diesel Generator - Hybrid system Further improved by a network of micro grids, while also reducing the CAPEX and OPEX 11Solar Micro Grid Network in India

12. Operational Arrangement- Solar Micro Grid Network Network of 12 solar micro- grids having 12 operators and 12 village energy committees Spare parts & stock material Spare parts & stock material Technical Resource centers with 2 technical supervisors Local NG0 Managing all the operations of the plant and monitoring them Project Steering Committee Capital MNRE : CFA Corporate Investors Local Entrepreneurs Identify, Train & Monitor Receive feedback & make change as required 12 Solar Micro Grid Network in India Maintenance

13. Benefits of Solar Micro Grid Rural Users Cash saving : 400 - 600/year ($10 /year) Clean, reliable & affordable power Environment & Health GHG emission reduction : 8,000 ltrs of kerosene Reduced indoor air pollution Livelihood opportunity Building capacity and giving employment locally New livelihood opportunities Developer Fast implementation & quicker ROI Easier replication 13Solar Micro Grid Network in India

14. Challenges Village Level Barriers Adverse living conditions Poor infrastructure & Inaccessible sites Reliable suppliers for system components Program Level Barriers (Scaling up) Skilled manpowerAccess to funding Technical complexities Solar Micro Grid Network in India14 Corruption at various levels Demand based designing Regional Level Barriers

15. Exploring Solutions Sensor Networks for disconnecting users Remote monitoring Technical Solutions Smaller grids (DC based) SHSs coupled with SMG Customized Designs Standardizing technical training Entrepreneurship training Building capacity of local NGO Training Hybrid system to overcome supply side problem Extension of the system to meet the rising demand Interconnecting micro grids System Enhancement Solar Micro Grid Network in India15

16. Saurabh H. Mehta, INDIA saurabh.mehta@kyrion.biz Energy Simplified, Kyrion Technologies www.kyrion.biz Thank You