Test Projects on Village Energy Security

The village / hamlet identified should
     * Be remote, and may include a tribal or forest-fringe village / hamlet.
      * Have adequate availability of fallow, common or uncultivated nongrazing land     for raising plantations
     * Have a cohesive and progressive social structure
     * Have a minimum of 25 and maximum of 200 households
    * Should be identified in consultation with forest, tribal and rural development departments / agencies.

After selection of the village / hamlet, a preliminary proposal would have to be prepared, got duly endorsed by the concerned State Nodal Agency and forwarded to the Ministry for consideration of `in principle’ approval.

Format for preparation of preliminary proposals for Test projects on creating Energy Security in villages through biomass

1. Name & Full Address of the Implementing Agency             :
    (Forest Department / DRDA / NGO)                                    :
2. Name & Full Address of State Nodal Deptt./Agency           :
3. Name of Gram Panchayat, Block & District                          :
4. No. of Villages under Gram Panchayat                               :
5. Name of Village / hamlet selected for the Project              :
6. Village census code                                                           :
7. Distance from nearest road-head                                      :
8. Distance from the grid                                                       :
9. Total population of the village / hamlet                             :
10. Male / Female ratio                                                          :
11. Rate of literacy                                                                :
12. No. of households                                                           :
13. Number of Hamlets / Dalit Bastis in Village                      :
14. Type of Social Structure                                                   :
15. Community buildings – school, PHC, panchayat ghar, etc. :
16. Main occupation, indicating cash crops                             :
17. Biomass resource availability - type of biomass,              :
       local fuel wood / oil-seed bearing species, if any
18. Availability of fallow land / waste land / uncultivated       :
      land etc. for energy plantations
19. Availability of water                                                          :                                  
20. Indicative Estimate of Energy Demand                             :
(a) Household – cooking, lighting, other
(b) Community services, including streetlights
(c) Irrigation/Agriculture Operations
(d) Commercial
(e) Industrial

21. Existing pattern of energy / fuel use and average             :
      monthly expenditure per household
22. Existing renewable energy devices in the village, if any    :
23. Biomass Technology package proposed to be deployed    :
24. Indicative capacity of the energy systems                          :
25. Role of local community in planning, implementation          :
       and management, including revenue management
26. Details of any local NGO already associated with the         :
       village / hamlet
27. Any other information 

After receiving `in principle’ approval from the Ministry, a Village Energy Plan will have to be prepared, with active and full participation of the village community.

i.   Assessment of the total energy demand
Energy demand include requirements for:-

• Household cooking, lighting and entertainment
• Community, commercial facilities such as shops, streetlights, health centre, school, flour mill, information and communication technology
• Pumping water for drinking, irrigation
• Rural / cottage industry

The minimum energy services to be provided for in any project should include cooking, lighting, street lights, pumping for drinking water supply, lights / fans in the school and primary health center.

ii.  Assessment of the biomass resources available locally
These may include dung, agro wastes, forestry residues, etc.

iii. Plans for meeting the energy demand

• The first option to be explored in the Village Energy Plan should be use of biomass resources.
• Appropriate fast growing / oil seed bearing tree species should be identified
• A plan be prepared for raising the plantations for obtaining wood, vegetable oil and other raw materials.
• Until the plantations reach an age when annual increments of growth and other raw materials become available, biomass offset from use as cooking fuel and other locally available biomass should be utilized for energy production.
• Only if biomass resources are not available or plantations cannot be raised, should utilization of other renewable resources such as mini hydel or solar be explored.
• Based on the total energy requirements and the local resource availability, the energy production system would have to be configured. For an energy production system based on biomass, an appropriate technology mix should be selected from available biomass conversion technologies such as:-
• Single / Bi-phasic biogas production using tree based organic substrates, vegetable wastes / residues, vegetable wastes / kitchen wastes, etc.
• Biomass Gasifier coupled with 100% gas engines or duel fuel engines run on bio-fuels in lieu of diesel.
• Stationary diesel engines run on straight vegetable oils or bio-diesel.
• Electricity distribution should preferably be carried out through a local mini grid. Emphasis should be on energy to be provided for productive activities with thrust on micro enterprise development, backed by micro credit facilities, with a view to facilitating job creation, income generation, increasing the purchasing capacity and reducing the migration from villages.

Full participation of the village community should be secured from inception. The constitution of a Village Energy Committee should be through the Gram Sabha and got duly notified by the Gram Panchayat as a Sub-Committee or Standing Committee of the Gram Panchayat as per the relevant provisions of the State Panchayati Raj Act and rules in this regard. Care should be taken that the elected Panchayat member/s from that village are exofficio members of the VEC.

• A Village Energy Fund should be got created under the provisions of State Panchayati Raj Act, initially with beneficiary contributions for sustained operation and management of the project.
• Subsequent monthly / annual user charges would have to be deposited in this account.
• Grants from other Government programmes such as rural development, forestry, tribal development, etc., if available, should be placed in this account, to be utilized towards operation and management of the project.
• The Fund should be managed by the Village Energy Committee with two signatories nominated by the Committee. One of the signatories would be the Gram Panchayat member who is the ex-officio member on the Committee.
• A separate capital account should also be got created, for receipts towards supply and installation of the energy production units. This Capital Account would also be operated by the VEC in accordance with the same procedure of joint signature and maintenance of accounts, which govern the Village Energy Fund.
• Both the VEF and the Capital Account of the VEC, being the accounts of the Gram Panchayat under the provisions of the law, would be subject to the processes of accounts maintenance and audit that apply to the Gram Panchayat.
• Expenditure of funds by the VEC should be disclosed to the Gram Panchayat at its monthly meeting as prescribed under the Panchayati Raj Act and Rules.
• VEC, being a Sub-Committee of a Standing Committee of the Gram Panchayat would also be under obligation to disclose information in accordance with the Right to Information legislation.
• VEC will also be authorized to submit the Utilisation Certificate to the Gram Panchayat, which in turn will submit the Utilisation Certificate to the agency concerned at the district level.
• Technical facilitation and capacity building through implementing Agencies or Consultants such as NGOs would be focused at the VEC level through the Gram Panchayat.  

An implementing agency would forward the proposals for the test projects to the Ministry through the State Nodal Agency. The proposals should include the following information:-

• Census code number of the village
• Village Energy Plan
• Confirmation about setting up of Village Energy Committee and creation of Village Energy Fund
• Plan for  training
• Implementation modalities
• O&M arrangements
• Commitment about balance 10% capital cost and funds for operation and management