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ID: 109338

Sustainable model for financial viability of decentralized biom / Palit, Debajit; Malhotra, Ramit; Kumar, Atul

Kumar, Atul	Journal Article
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Publication

2011.

Summary/Abstract

This paper made a modest attempt for designing a sustainable model for financial viability of biomass gasifier power projects for enhancing electricity access in India and other developing countries. For long term sustainability of distributed generation projects in remote rural areas, viability from both project implementing agency (PIA) and the end-users need to be ensured. The minimum required prices of electricity from both PIA and end-user perspective have been estimated. While for PIA the cost recovery is the key for viability, the affordability to pay the electricity cost is crucial for the end users. Analysis carried out in this paper on the basis of data obtained from operational projects implemented in India reveal that it is essential to operate the system at a higher capacity utilization factor. While this can be achieved though creating convergence with locally relevant economic activity, it is also observed that micro-enterprises cannot pay beyond a certain price of electricity to keep it sustainable. This paper sets forth a case for developing a regulatory mechanism to extend the tariff fixation for the projects and providing cross-subsidies to ensure long term sustainability of off-grid project.

Key Words

Biomass Gasifier ; Financial Analysis ; Off - Grid Electrification

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ID: 126527

To regulate or not to regulate off-grid electricity access in d / Bhattacharyya, Subhes C

Bhattacharyya, Subhes C	Journal Article
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Publication

2013.

Summary/Abstract

As off-grid electrification receives global attention in the Sustainable Energy for All initiative, the role of regulation for this alternative form of electricity delivery requires a careful investigation. This paper asks whether the activity has to be regulated or not. It then tries to find out where regulation can be used and what type of regulation is appropriate. It suggests that for product-type delivery options, there is no justification for regulatory intervention in the sense of utility regulation but such intervention makes sense in the case of mini-grid-based off-grid delivery options. The paper considers the pros and cons of a generic license waiver, a simplified regulatory arrangement and a full-fledged regulatory supervision and suggests that a light-handed approach is appropriate in general to promote the activities of the sub-sector but more formal approaches may be required if the players do not abide by the rules. The paper also highlights some regulatory challenges and issues.

Key Words

Regulation ; Challenges ; Off - Grid Electrification

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