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Multi-Criteria Assessment of Micro Grid Projects for Rural Electrification
Afsal Najeeb and Prof. Anand B. Rao Centre for Technology Alternatives for Rural Areas
Indian Institute of Technology Bombay Presented by: Sneha Swami
1 CTARA, IIT Bombay
Outline
• Significance of the topic
• Objectives
• Methodology Introduction
• Status of renewable energy microgrid projects in India
• Assessment of microgrid projects
Literature Review
• Case studies
• Development of indicator based assessment method
• Application of the framework to compare the case studies
Case Studies & Field Work
• Learnings
• Concluding remarks & Future work
Conclusion and scope of future
work
2 CTARA, IIT Bombay
Rural Electrification In India
• 9 States with 100% coverage of central grid
• >300 Million people without access to power
Rural Electrification
Un - Electrified Households
46% of the Rural households (Census,
2011)
RGGVY Definition of “Electrification” – 10%
of village may have grid connectivity
Villages or hamlets that are not electrified
– 20,000 – 45,000 (CEA, 2015)
Electrified Households
99.8% of villages are electrified (DDUGJY,
2017)
Very low time of availability (As low
as 5 hrs. per day)
Quality of power available 3 CTARA, IIT Bombay
Identify a set of criteria
for evaluation of micro
grid projects and
convert them into
suitable indicators for
collection of data
Literature review, Field visits
Interaction with stakeholders – micro grid project developers to identify what are their perspectives on evaluation of such projects
Interaction with beneficiary communities – In what ways have the introduction of micro grids affected them? What are their present needs, issues
Analyse existing
projects through this
framework
Selection of a few micro grids for study considering availability of required data, access to the site
Collect data for each indicator
Understand the performance of each project with respect to the evaluation criteria
Objectives Methodology
Multi criteria assessment
4 CTARA, IIT Bombay
Microgrids In India
• No regulation public domain data available on
the number and type of systems
• Details of 433 microgrids implemented by
various agencies were collected (Aided by
Prayas Energy Group, Pune)
• Wide variations in capacity provided (Varied
from 400 W per Household to less than 50W)
• No subsidies from GOI after 2014 (Source:
Interaction with project developers)
93%
1%
6%
Microgrid Projects In India - Technology Used
Solar Photovoltaic Biogas Micor Hydro
5 CTARA, IIT Bombay
Microgrids vs. Grid Extension
Both have a niche space of their own 6
Parameter Microgrid Grid
Load / Capacity Limited capacity, may saturate over time
Unlimited (virtually) capacity, although there is often load shedding during times of peak demand
Reliability/ Power Quality Varies, though coupling generation sources and including energy storage device can improve power quality
Low reliability, especially for rural areas that are not considered profitable because of low demand
O&M Varies depending on source Low O&M requirement for consumer, but continues monitoring needed
Price of Electricity for consumers
Typically high, even for low level of services. Around Rs.23 to 33/kWh
Actual cost of production heavily masked by subsidies.
Cost of Electricity for Producers
Around Rs.23 to 33/kWh (varies by the energy source)
Function of distance from the grid, terrain and load profile
CTARA, IIT Bombay
Evaluation of Microgrid Projects – Previous Studies
• Barnes et al. (2003) - toolkit for evaluation of rural electrification projects in the
Indian context (ESMAP)
• Chaurey and Kandpal (2010) - assessment and evaluation of PV based rural
electrification at various locations
• Researchers of Luleå University of Technology have a set of five dimensions for
the evaluation of micro grid projects
• Large number of studies related to identifying the welfare benefits of
electrification programmes
7 CTARA, IIT Bombay
Methodology
• Selection of five rural renewable energy
microgrids
• Field visits, data collection, interaction with
stakeholders
• Detailed analysis of performance of one
system
• Household survey
• Economic Analysis
• Formation of indicators and required data
collection for all systems
8 CTARA, IIT Bombay
Microgrid visits • Interaction with microgrid project development agencies, NGOs who have established microgrid projects
• Case Studies
Location Microgrid Study Status
Manmohadi, Jawhar, Maharashtra
Solar PV Microgrid by Gram Oorja
Interaction with beneficiaries, operators, NGO, survey of households, data collection
Functional
Navpada, Jawhar, Maharashtra
Interaction with beneficiaries, operators, NGO, data collection
Wadpada, Aine, Maharashtra
Amle, Mokhada, Maharashtra Solar PV Microgrid by Arohan
Kokkathode, Pathanamthitta, Kerala Solar PV Microgrid by ANERT
Interaction with beneficiaries, GP members, ANERT officials, data collection
Not - Functional 9 CTARA, IIT Bombay
Detailed Questionnaire Survey
Questionnaire
• Basic household information
• Details of microgrid service used, sources of lighting or electricity before the microgrid service
• Satisfaction level about the services, tariff
• Involvement in the planning and implementation stages
• Details of appliance use, possible increase in electricity usage
• Suggestions about the system
Sampling Strategy
• Energy consumption of individual households
• Geographic location
• Social and economic background
• 30 out of 63 households were surveyed
11 CTARA, IIT Bombay
Socio-economic Profile: Manmohadi, Jawhar
• People are mostly farmers who also get employed as manual labourers
• One local shop, few people who use the better lighting for income generation
• Agriculture is mostly subsistence with no mechanisation and limited irrigation
• People also engage in collection of non-timber forest products (NTFP)
0
5
10
15
20
<1 1 - 2 2 - 3 3 - 4 4 - 5 5 - 6 >6
Nu
mb
er o
f p
eop
le
Land holding (Acres)
Pattern of Land Holding
12 CTARA, IIT Bombay
Uses of electricity – Significance of demand forecasting
10%
10%
43%
17%
10%
10%
Expected Uses of Electricity before micro-grid
Lighting
Lighting, Fans
Lighting, mobile charging
Lighting, mobile charging,fans
Lighting, mobile charging,fans, other appliances
Lighting, mobile charging,other productive uses
Share of users
7% 0%
33%
10%
37%
13%
Use of appliances after the introduction of microgrid
13 CTARA, IIT Bombay
Patterns in Energy Consumption
0
10
20
30
40
50
60
<3 3-6 6-9 9-12 >12
Nu
mb
er o
f h
ou
seh
old
s
Units consumerd / month (kWh)
Energy consumers classification 2015
June July August September
0
50
100
150
200
250
300
350
400
450
June July August September
No
. of
un
its
(kW
h)
Total Consumption per month 2015
R² = 0.6206
0
5
10
15
20
0 1 2 3 4 5 6 7
Un
its
con
sum
ed (
kWh
/m)
Land holding (acres)
Relation between average consumption (kWh/month) and Land Holding
14 CTARA, IIT Bombay
Tariff Structure
Type I – Two LED lamps, one plug
Rs. 1000
Type II – Two LED lamps, two plug points
Rs. 1500
0
2
4
6
8
10
12
14
<150 150-300 300-450 >450
Nu
mb
er o
f p
eop
le
Only Fixed Charge (Rs.)
Acceptable cost of connection according to consumers
20%
17% 63%
Preferred frequency of payment of usage tariff
Weekely
Monthly
Seasonally
• Monthly fixed charge – Rs. 50, and 10 per unit
• Theft has been prevented by locking the metres of a group of households
• People are not able to monitor usage and optimise
• Post paid billing 15
One time charge
CTARA, IIT Bombay
Economic Analysis
-35
-30
-25
-20
-15
-10
-5
0
5
0 25 50 60 70 80 90 95 100
x 1
00
00
0
NPV at various discount rates and present level of utilisation
NPV at 5% per discount rate per annum
NPV at 10% discount rate per annum
NPV at 15% discount rate per annum
Assumptions • Lifetime of panels – 25 years • Lifetime of battery – 5 years • Lifetime of inverters and
charge controllers – 15 years
Cost of the system: 31,00,000 Which includes Cost of panels, Cost of battery, Cost of sunny boy SB 5000, Cost of SMA SI 6.0 H and other costs
16 CTARA, IIT Bombay
Variation of IRR with tariff
• IRR – Measure of economic sustainability
• People demand a reduction of fixed tariff from Rs. 50
• But fixed tariff is required at this level of consumption to maintain viability
• Capacity Utilization Factor improvement will increase IRR
• Encouraging use of productive load
-16.00%
-14.00%
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
0 20 40 60 80 100 120
IRR
Percentage of subsidy
Variation of IRR with change in tariff
IRR at present tariff IRR when fixed monthly charge is zero
17 CTARA, IIT Bombay
Analysis of the system using HOMER
• HOMER, the microgrid planning and implementation tool, was used to reverse engineer
the system
• The system on the ground was modelled using HOMER to understand the performance
better
• Limitations
• Lack of reliable data on cost of components, implementation, exact system components in modelling
• Collected revenue addition to economic analysis
• Possible future work – comparison of field measurements and results from HOMER to
understand the accuracy of predictions 18 CTARA, IIT Bombay
Case Study 2 – Wadpada Microgrid
• Implemented by Pragati Pratishtan and Gram Oorja
• Geographic conditions limit the possibility of grid extension
• Very Small hamlet of nine households
• Very limited possibility of commercial activity
• IRR = -6%
Parameter Value
Size 1.5 kWp
Number of
households 9
Population 37
Primary occupation
of the people Agriculture
Solar Panels 250 W*6,Anchor
Charge Controller Xantrex WM_60A/24V
Inverter Sukam - 24 V,1.5 kVA
Battery Exide, 24 V 300 Ah 21 CTARA, IIT Bombay
Fig.: Solar panels at Wadpada microgrid
Fig.: Inverter and batteries at Wadpada microgrid
Fig.: Charge controller at Wadpada microgrid
22 CTARA, IIT Bombay
Case Study 3: Navpada Microgrid
Size 6kWp
Number of households 32
Population 182
Primary occupation of the
people Agriculture
Solar Panels 250 W*24,Anchor
Charge Controller SMA- SB 5000
Inverter SMA SI 3.0 M
Battery Exide ,48 V 800 Ah
Situated very close to an electrified village, at about 300 m
23 CTARA, IIT Bombay
Fig.: Agreements with consumers, Pass book of the bank account maintained by the VEC, Receipt given to consumers upon payment of monthly dues
Fig.: Display of the inverter, Navpada microgrid
24 CTARA, IIT Bombay
Case Study 4: ANERT Microgrid, Kokkathode, Pathanamthitta, Kerala
• 4.5 kW, battery based system, Established in 2010
• Power was provided free of cost
• Ownership – Gram Panchayat, but VEC had the power
to take decisions
• Grid reached the village in 2012
• Initial resistance by forest department against setting
up of the plant
• Provides basic lighting facilities for 45 households.
25 CTARA, IIT Bombay
Case Study 5 – Amle Microgrid
Parameter Details
Rating 7kW
Solar panel rating 230W, 4 strings of eight
panels each
Type of panel Multi Crystalline silicon
Maximum voltage 29V
Maximum current 7.95A
Inverter 10 kW/180 V DC/415 V/ 3-
phase output
Battery 180 V/ 200 A-h, (90 X
2V/200Ah batteries)
Number of households
served 65
Monthly tariff Rs. 50/-
• Located in Amle village in Suryamal Gram Panchayat
of Mokhada Taluka
• It was established by Aarohan in cooperation with the
Corporate Social Responsibility initiative of a private
company.
• It was designed to provide power for lighting and
other limited uses for the sixty five households and to
power twenty streetlights.
• A water pump for common use was also powered by
the system
• Does not generate enough money for replacement of
components 26 CTARA, IIT Bombay
Feature Manmohadi Wadpada Navpada ANERT Amle
Capacity kWp 10.5 1.5 6 4.48 7
No. of households
65 9 32 45 65
Distance from the central grid
10 km 8 km 0.3 km 2 km ( now connected)
4.5 km
Services provided Lighting, fans, other loads
Lighting alone Basic lighting, community water pump
Hours of service per day 24
4.5 5
Tariff per month per HH Rs. 50 + Rs. 10 per kWh
No charges Rs. 50
Details of microgrids
27 CTARA, IIT Bombay
Dimensions of Evaluation
4
3
5
Technical Dimension
Understand the technical aspects of the project such as the availability, quality of services, capacity utilisation etc. which determine the sustainability of the plant
Economic dimension Understand if the system is be able to generate enough revenue for maintaining continuity of service, replacements, opportunities created for livelihoods, productive uses
Social dimension
Understand the quality of benefits created, their distribution, direct and indirect impacts on people`s lives
1
2
Environmental dimension
Effect of the project on natural resource use, emissions, generation of waste etc.
Organisational Dimension
Capacity of the organisation and stakeholders to manage the system. 28 CTARA, IIT Bombay
Definition of Individual Indicators Name Name of the indicator Percentage of households connected
Brief Definition Brief definition of the indicator The percentage of households of the study area to which connections
are provided from the micro grid
Unit of measurement Unit of measurement of the indicator Percentage
Relevance to the
study / Purpose of
collection / Possible
analysis that can be
done
Defines the significance of the particular indicator
to the study and the possible analysis that can be
done or useful information that can be derived
from the data collected.
Gives an idea about the coverage of the project in the locality where it
is implemented. High coverage indicate preference of the people to
choose the service due to quality of service or lack of other services.
Low coverage may indicate alternate options available or lack of
infrastructure to serve more people
Method of
measurement
Describes how the indicator is measured Can be derived from the data obtained from the village energy
committee or the project implementing agency
Inputs Required What are the inputs required for the development
of the indicator. This gives an idea about the data
requirements, hence aids in the planning of the
data collection stage.
No. of people who are registered beneficiaries of the project, total
number of people in the area
Limitations Describes the limitations of the indicator Does not give an idea about distribution of beneficiaries within the
village, theft or unauthorised connections
29 CTARA, IIT Bombay
Comparison Between Case Studies • Two Possibilities: Absolute assessment of one microgrid with standard
Relative assessment of microgrid projects
• Scores were allotted to each of the projects on a scale of 5 (Total no. of projects considered for comparison) with 5 representing the best case scenario and 0 representing the lowest
• Perspective: Contribution of the factor / indicator to the long term sustainability of the project
30 CTARA, IIT Bombay
Case Study Manmohadi Wadpada Navapada Kokkathode Amle
Final Technical Indicators Value Score Value Score Value Score Value Score Value Score
Distance from the grid (km) 10 5 300m 1 8 4 3km 3 2 km 2
kW per household 0.161 2.5 0.167 4 0.1875 5 0.1 1 0.161 2.5
31
Assigning score to indicator
CTARA, IIT Bombay
Case Study Manmohadi Wadpada Navapada Kokkathode Amle
Final Technical Indicators Value Weightage Value Weightage Value Weightage Value Weightage Value Weightage
Distance from the grid (km) 10 5 300m 1 8 4 3km 3 2 km 2
kW per household 0.161 2.5 0.167 4 0.1875 5 0.1 1 0.161 2.5
Conformance with national
standards High 3.5 High 3.5 High 3.5 Low 1 High 3.5
Facilities limited to lighting
only No 3.5 No 3.5 No 3.5 Yes 1 No 3.5
Compatibility with future grid
service Yes 3.5 Yes 3.5 Yes 3.5 No 1 Yes 3.5
Capacity utilization (Max.) or
PLF 0.27 3 0.0952 1 0.1873 2 NA 4 0.9 5
Daily availability of services 24 hrs. 4 24 hrs. 4 24 hrs. 4 6 hrs. 1.5 6 hrs. 1.5
Availability of service from 6
pm to 6 am Yes 4 Yes 4 Yes 4 No 1.5 No 1.5
Number of interruptions per
week 0 4 0 4 0 4 5 1 2 2
No. of months of service per
year 12 3 12 3 12 3 12 3 12 3
Availability of skilled
manpower Village 3 Village 3 Village 3 Village 3 Village 3 32 CTARA, IIT Bombay
Results
00.5
11.5
22.5
33.5Manmohadi
Wadpada
NavapadaKokkathode
Amle
Technical Dimension
• Facilities provided by the microgrid and hours of service
are significantly higher for Manmohadi, Wadpada and
Navpada
• Daniel Schnitzer et al., 2014, Barnes et al., 2003 and
Soshinskaya et al. 2014 have also identified this feature.
• The draft report on microgrids submitted to the Ministry
of New and Renewable Energy on microgrid projects
also has suggestions to promote microgrids which
provides higher level of electricity services, not restricted
to lighting systems alone.
33 CTARA, IIT Bombay
2.72.82.9
33.13.23.3Manmohadi
Wadpada
NavapadaKokkathode
Amle
Social Dimension
0
1
2
3
4Manmohadi
Wadpada
NavapadaKokkathode
Amle
Organisational Dimension
• Very complex dimension to quantify and compare, related to many other dimensions
• Importance of community services an important factor as indicated by Daniel Schnitzer et al., 2014, Farzan et al., 2013, SPEED, 2014 and Raman et al. , 2012
• None of the projects provided ICT avenues, poor participation of women
• Effectiveness of VEC operation
• Powers and functioning of VEC are critical
• VEC may have powers, but users maybe unaware and
they fail to exercise it
• Penalties, disconnection from service etc. have to
implemented
• Monitor payment lag 34 CTARA, IIT Bombay
• Replacement costs – Bottleneck for PV
based systems
• Per unit cost of electricity paid by consumer
and the level of services obtained
• Manmohadi is the only system that can
meet the replacement costs, which is the
most common bottleneck in PV Plants
• Amle has high utilisation, poor tariff
structure
0
1
2
3
4Manmohadi
Wadpada
NavapadaKokkathode
Amle
Economic Dimension
35 CTARA, IIT Bombay
Overall Score
• Each dimension has an independent
significance
• Weightages for each dimension may
vary with the context – between a
for profit microgrid, a donor funded
system etc.
• But overall scores reflect the
individual performances
0
1
2
3
4Manmohadi
Wadpada
NavapadaKokkathode
Amle
Overall Score
36 CTARA, IIT Bombay
Discussion on indicators, weightages and ranking method
• Score of each dimension was almost same for most of the case
studies; reduced in the overall score.
• Large differences between the projects ( eg. IRR ) have been reduced
to a smaller difference due to the method of ranking and the
weightages provided.
• Appropriate weights are to be chosen for the individual indicators
37 CTARA, IIT Bombay
Important Learnings
Strategic Planning
• Strategic Planning
• Considers Factors that leads to uncertainty and risk for the developer or poor service delivery for communities. It also involves aspects like choice of technology, system sizing
Operations
• Operations
• Technical, commercial and financial practices that have an impact on the microgrid implementation, acceptance and long term sustainability
Social Context
• Social context
• Learnings about the perspectives of the people towards microgrids
38 CTARA, IIT Bombay
Strategic Planning
• Need Identification
• Organisation
• Choice of Technology
• Demand Projection • Oversizing the system
• Incrementally expanding capacity
• Managing demand
• Contracts and agreements
• Co-ordination with government agencies
Choice of Technology
Resource Availability
Resource Variability
Demand Projection
Economic Sustainability
39 CTARA, IIT Bombay
Operations
• Requirement of cost recovery
• Tariff design
• Frequency of tariff collection
• Demand Side Management
• Maintenance and Safety
Poor maintenance
Unmet demand growth
Poor load management
Loss of reliability due to unscheduled
outages
Cease Functioning
Theft or
under priced tariff
Low cost recovery
Social Context
• Community involvement
• Enabling utility / income generating activities
• Strategies to increase community involvement
40 CTARA, IIT Bombay
Conclusion & Future Work
• Significance of DRE microgrids for electrification of rural areas was studied
• Identification of factors that contribute / determine success or failure of microgrid
projects
• A set of indicators were designed for a better understanding of the long term
sustainability
• The case studies conducted were analysed through this framework of indicators
• Planning and implementation of a solar PV microgrid for a remote tribal hamlet in
Maharashtra – In progress 41 CTARA, IIT Bombay
“Design and implementation of microgrids as if people mattered”
• Conventional approach views electrification as a techno-economic problem
• Evolution of a people-centric approach in the design of projects to address the
issue of rural electricity access in general and planning of RE micro-grids in
particular
• Thinking differently from a design process for rural micro-grids often follows a
“one size fits all” philosophy where communities and beneficiaries everywhere are
considered as homogeneous groups and their priorities are assumed to be the
same 42 CTARA, IIT Bombay