|
 |
Project Strategy
Under the proposed project, MNRE seeks to provide impetus to scaling up of commercially viable RET based business models that have been successfully pilot tested in the past. The current project will aim at strengthening technical, institutional, financing, delivery and servicing capability/ infrastructure needed to address the key barriers for up scaling of technically proven & financially viable renewable energy applications. The nature of support envisaged under the project is a clear departure from the past programs and schemes of the Ministry, wherein an innovative funding model is proposed to address financial, institutional, infrastructural gaps including soft costs towards awareness generation, training & capacity building needed for upscaling of proven and commercially viable business models.
The proposed approach aims to stimulate widespread replications of these models and leverage additional resources for renewable energy development. Such wide-scale replication of will create a “critical mass of demand” for renewable energy systems, which can further increase production and reduce their costs nationally and lead to a broader market acceptance of renewable energy technologies. Many RET projects do not get beyond the planning stage. There is a need for innovative structures that can fill the funding gap between the equity and debt available to a project. Therefore the current project will also provide an innovative funding structure that would seek to fill in these critical gaps and connect entrepreneurs proposing small-scale renewable energy projects/ or those who plan to integrate renewable energy in existing business units with small amounts of grant/ subsidy and/ or enterprise assistance services at an early stage. These projects can then link with the commercial credit operations of banks / lending agencies/ financial institutions making strategic investments in the sector and other suppliers of second stage debt and equity to meet the financing requirements of their project. The project also proposes to allow funds to be used as a credit guarantee for nurturing of the enterprise, while simultaneously piloting the development of the mechanism. The proposed mechanism is also designed to leverage commercial bank resources for project investments in the project period and beyond. Thus the project is intended to increase the comfort level of the lenders so that banks develop lending operations in these areas and also set in place the institutional apparatus and technical assistance services to articulate the policy goals of the enterprises.
The proposed mechanism is also designed to leverage funds from relevant schemes of other ministries/ department/ state government and commercial bank resources for project investments in the project period and beyond and will seek active support of the grassroots NGOs, entrepreneurs, equipment manufacturers, Self Help Groups, Cooperatives & Panchayats among others for creating awareness on renewable energy and its linkage with livelihood, environment, health etc.
This operational manual details out guidelines & operational procedures for governance and management of the project fund, eligibility of entities that can apply for the fund, criteria for review and selection of the proposals/ ideas under the project, process & timeline for screening, review, short listing and selection of project proposals/ideas along with monitoring, documentation and financial aspect of the project.
Project Deliverables
The project interventions are expected to have scale as well as ripple effect in terms of demonstration and uptake of project strategies. In this context, the overall deliverables of the project are envisaged to be as follows:
| 1. |
Current scenario reviewed |
| |
|
| |
A review of national policy and schemes based on desk review, visits to the field sites and stakeholder’s consultations will be done to understand the present activities in the area of rural energy access, progress of mainstreaming clean energy devices |
| |
|
| 2. |
Mainstream modern clean energy devices for meeting thermal/ electrical applications in selected areas for the end uses of both domestic and enterprises |
| |
|
| |
Appropriate modern energy devices will be chosen. Criteria will be developed and tested for choosing basket of appropriate technology options. For example, in the domestic cooking sectors, choice of improved cooking devices that are energy efficient and reduce indoor air pollution will be chosen from low cost improved cooking devices, modern biomass energy devices such as gasifier stoves / turbostoves, biogas plants, efficient oil stoves, solar cooking units, etc. Appropriate service systems shall also be established for supply of efficient thermal/ electrical energy devices (to meet thermal/ electrical applications for both domestic and enterprises). This will also include organising awareness generation, training and capacity programs for key stakeholders. |
| |
|
| 3. |
Support to upscale implementation |
| |
|
| |
Two different models for upscaing and distribution shall be designed and implemented.
-
First model will be based on the focus of “renewable energy based electricity generation integrated with livelihoods”. This will be focussed in rural areas. Different types of renewable energy technology e.g., gasifier based, biogas based, small hydro based, and solar based or their hybrid will be tried.
-
Second model shall focus on demonstrating “enterprise promotion for the marginalized through renewable/clean energy services”. A few village panchayats will be chosen for implementation of the model. A few enterprises / livelihoods generations considered for amalgamating with renewable energy is, grain milling, leaf plate making, water pumping for agriculture, rural workshops, etc. Rural industries thus may form part of the programme.
|
| |
|
| 4. |
Establishment of criteria for Renewable Energy Service Company (RESCO) as viable business model |
| |
|
| |
The energy services offer enormous opportunities provided level playing field is available. The project explores to establish criteria for making RESCOs a business proposition in the rural areas. |
| |
|
| 5. |
Developing communication strategy to disseminate the learning |
| |
|
| |
The project is expected to provide inputs on questions of viability of modern energy devices and its impacts on the quality of life, role of alternate energy in generating electricity, analysis of gap funding/fiscal incentive to run the small renewable energy projects feasibly, review the policy on rural energy and provide inputs. It also would have demonstrated different models for electricity generation, distribution, experiences in running them and elements to sustain them. A socio-environmental, techno-economic assessment of interventions will be carried out to understand the impact from the project in the area. All these learning’s will be documented through different print (brochures, booklets, manuals and books) and visual media (for common public, local decision makers and policy makers at the national level) and communicated on appropriate forum. These lessons will also be shared on the UN Solution Exchange platform appropriately. Special focus will be laid on document gender related learning. |
| |
|
| 6. |
A strategy paper developed for feeding in to the ‘Off Grid Renewable Energy Policy’ of MNRE |
| |
|
| |
The reviews carried out, impact assessments; lessons learnt from implementation, will help in formulating a strategy paper ‘Off Grid Renewable Energy Policy for MNRE. The specific activities in arriving at such a strategy paper would include the following;
-
Lessons learnt from up-scaling the present successful practices
-
Lessons learnt from demonstrated models
-
Consultations at GP level, district level, state level and national level through symposia, workshops, meetings and dialogues
-
The inputs gathered from the consultation/dialogue groups like solution exchange
|
| |
|
|
