media manual_low res final

© VIVEK M/greenpeace 

Dharnai live 

media manual

CONTENTS 

INTRODUCTION: Decentralised Renewable Energy 

1 

Micro-grid in Dharnai 

Tariff, Funding and maintenance 

Investor-friendly micro-grid 

The way ahead 

9 

25 

32 

34

Introduction 

Decentralised Renewable Energy 

MEDIA MANUAL | Introduction: Decentralised Renewable Enregy 

1 

Aerial view of solar panels in Dharnai Revenue Village ©SAJAN PONAPPA/greenpeace

What is Greenpeace? 

Greenpeace is a non-profit organisation with a presence in 40 

countries across Europe, the Americas, Asia and the Pacific. It speaks 

for 2.8 million supporters worldwide and inspires millions more to take 

action every day. To maintain its independence, Greenpeace does 

not accept donations from governments or corporations but relies on 

contributions from individual supporters and foundation grants. 

Greenpeace exists because the earth and all life on it deserve a 

clean and safe environment – now and in the future. It has been 

campaigning against environmental degradation since 1971 when 

a small boat of volunteers and journalists sailed into Amchitka, an 

area north of Alaska, where the US government was conducting 

underground nuclear tests. This tradition of “bearing witness” in a nonviolent 

manner continues today and ships are an important part of all 

its campaign work. 

Actions often speak louder than words and non-violent direct action 

is at the heart of Greenpeace campaigns, which have also grown to 

include lobbying and research over the past years. 

As a global organisation, Greenpeace focuses 

on the most critical worldwide environmental 

issues such as:- 

· Oceans and ancient forests protection; 

· Fossil fuel phase out and the promotion of 

renewable energies to stop climate change; 

· Nuclear disarmament and an end to nuclear 

contamination; 

· Elimination of toxic chemicals; and 

· Preventing the release of genetically 

engineered organisms into nature. 

Greenpeace India has focussed on four broad 

campaigns namely, stop climate change, 

sustainable agriculture, preserving the oceans 

and preventing another nuclear catastrophe 

since its inception in 2001. Over the years, 

Greenpeace India has built a strong base of 

supporters spread across the country. i 

Children in front of the Dharnai Live mural at Jitkoria tola, Dharnai Revenue Village 

© VIVEK M/greenpeace 

2 

MEDIA MANUAL | Introduction: Decentralised Renewable Enregy

What is Greenpeace doing in Bihar? 

Bihar has been struggling with energy We have worked with key stakeholders in the state and the 

access for decades. About 89 per cent government machinery to develop a legal, political and regulatory 

of the state’s population resides in rural framework to review the existing centralised energy infrastructure and 

areas and almost 95 per cent of the rural encourage utilisation of renewable energy in the state. 

population in Bihar is still dependent on 

kerosene as a primary source of lighting. In2011, Greenpeace launched its project “Ensuring Energy Access in 

Just about half the villages in the state Bihar through Decentralised Renewable Energy” to showcase a new 

have been electrified, where the quality of approach for energy justice. As part of it, we conducted a survey on 

electrification is also suspect. ii 

electrification done through Rajiv Gandhi Grameen Vidyutikaran Yojana 

and recommended the use of DRE for reaching rural areas. In 2012, as 

Greenpeace strongly believes that a 

part of this campaign, we successfully demonstrated irrigation pump 

decentralised and sustainable approach is sets that run on solar, post which the state government announced a 

the right way forward in providing electricity host of schemes on irrigation, education, health and other livelihood 

to the millions presently deprived of it. programs using alternative renewable energy. 

Bihar can leapfrog into the future to provide 

for the energy needs of its population in a Greenpeace has been witnessing various levels of changes it has 

sustainable manner. To do this, the state must brought in the state, particularly in its mission to convert a nonbeliever 

into believer. From changing and strengthening an ambitious 

chart an alternative development pathway 

using decentralised renewable energy or DRE. chief minister’s belief that decentralised renewable energy systems are 

Such an alternative energy paradigm would here to stay, Greenpeace is also advocating to the state government to 

enable Bihar to ensure quality electricity and increase investment in renewable energy technologies for irrigational 

inclusive development to its people. 

purposes. 

Greenpeace has been working in Bihar since 

2010 to bring about this paradigm shift in 

its energy planning and investment. It is 

implementing the energy access campaign 

and has established the political momentum 

in the state towards DRE as a tool to remove 

energy poverty. The campaign aims to 

challenge the dominant perception that 

centralised addition will deliver power to all. 

It instead works to create political and policy 

champions who will support decentralised 

systems powered by renewable sources 

of energy versus coal or nuclear to provide 

electricity access to millions who currently 

don’t have it (even if they are on the grid). 

Greenpeace has been working in Bihar since 2010 to ensure 

quality electricity and inclusive development to its people 


3

What is DRES and why is IT a key solution to 

India’s energy problem? 

DRES or Decentralised Renewable Energy Systems generate 

electricity near the point of consumption using locally available 

renewable resources. They do not use large land area or a huge 

distribution system and are more reliable in terms of energy access. 

Some of the DRES running in India today are solar-powered, rice husk 

systems and small-scale hydro systems. 

In the report, World Energy Outlook 2011, the International Energy 

Agency (IEA) says that despite United Nation’s mission of sustainable 

energy for all, we still continue to live in a world where 1.3 billion of the 

poorest people live without access to modern electricity, of which a 

major proportion lives in India. iii 

There are more than 300 million people still waiting for electricity in 

India iv with more than a third of the rural population lacking electricity. v 

Only 52.5 per cent of rural households have access to electricity. vi 

These rural areas, though often the location of large energy projects, 

have never benefitted from these projects. They have only borne the 

brunt of the destruction caused by these projects. 

From far flung villages in the mountains, clusters in the forested 

central expanse to the rural areas even in the densely populated Uttar 

Pradesh and Bihar have not benefitted from the 54,964 MW expansion 

of the central grid. vii This is despite the fact that in the Eleventh Five 

Year Plan Rs 463,658 crores were spent on the power sector. viii 

It is obvious who is benefitting from these 

massive investments. Even schemes like 

Rajiv Gandhi Grameen Vidyutikaran Yojana 

have not benefitted rural areas because of 

its reliance on expansion of the central grid. 

Evaluations have pointed out how wires have 

been laid out and poles erected but electricity 

has not reached villages. 

Moreover, the quality of electricity from the 

grid is plagued with intermittent supply, 

voltage fluctuations and transmission losses. 

With decentralised systems, the electricity is 

generated close to the point of consumption 

reducing distribution losses, infrastructure 

costs and improving reliability of supply and 

voltage. 

This is the key reason why Greenpeace 

believes that decentralised is the only 

way village and rural areas can gain rapid 

access to electricity. There are numerous 

decentralised systems operating across the 

country that are providing sustainable and 

regular electricity to households. 

OPTIONS IN Decentralised Renewable Energy Systems 

SOLAR 

biomass 

wind 

micro-hydro 

4 


A biomass gasifier generates electricity from discarded rice husk, and provides electricity to around 

one lakh people across 125 villages in Bihar ©Harikrishna Katragadda/greenpeace 


5

Why do you think we can rely on renewable energy? 

After witnessing years of slagging growth, there is today widespread an integrated approach with a mix of 

need for robust growth and development across the country. However, grid extension, grid interactive and offgrid 

systems to meet the rural electricity 

India’s crippling energy infrastructure is proving to be an impediment in 

fulfilling the country’s economic and social needs. 

requirements should be developed. Further, 

renewable energy is well-suited to meet 

Energy and electricity requirements, in particular, have risen sharply India’s need for power in remote areas that 

in recent years and this trend is likely to continue in the foreseeable lack grid and road infrastructure due to 

future. At present, India has an installed capacity of 211GW and the distributed nature of resources and the 

it is expected that by the end of the current 12th Five-Year Plan scalability of system design. ix 

(2012-2017), India’s peak demand will rise to 335GW. This in turn 

will require India to have a total installed capacity of around Renewable energy is not just the future but 

415–440GW. 

also the saner choice in the present energy 

scenario. Renewable energy produces more 

This means that in the next four years, India would have to install than twice the amount of electricity produced 

close to twice as much capacity as it has been able to install in the by all of country’s nuclear power plants 

last 60 years. In order to achieve this, the speed with which the new combined. More than a million households 

capacities are being built must increase five-fold. This must be seen in depend solely on solar energy for their energy 

the light of consistent under-achievement in capacity addition targets, needs. In 2012-13, the electricity produced by 

from the 1st Five-Year Plan till the present one. 

renewables was equivalent to meeting the per 

capita annual electricity requirement of about 

Shift from fossil fuels to renewables will ensure that such aspirations 60 million people. x 

are met while also providing substantial benefits like independence 

from global volatile fossil fuel prices and the creation of millions of new With coal reserves depleting worldwide and 

green jobs. 

nuclear unable to overcome its liabilities, 

the question that is glaring at us is: is there 

With decentralised micro-grids based on renewable energy generation, an alternative to renewables? Greenpeace 

Indian government could very well plug-in the terawatt challenge of believes that going the renewable way is 

providing millions with quality electricity supply. While it is true that inevitable and not a choice 

grid extension has a significant role to play in rural electrification, 

6 


With higher costs, why do you think renewable can 

be a solution in a country where the average per 

capita income is lowest among developing countries? 

Currently, the price of renewables is definitely 

higher than coal-powered energy and nuclear 

energy. But there are many factors that are 

ignored when making this comparison. 

1. Coal-fired power plants and nuclear 

power plants operate at a larger scale. 

The investments are higher and the 

infrastructure required is also bigger. 

At a bigger scale, the unit costs come 

down. The subsidies given to coal are 

also higher. The overall environment is far 

more conducive to invest in and produce 

coal-powered or nuclear energy than 

renewable energy. 

2. Coal power is subsidised. Power plants 

get subsidised land, almost free water 

and subsidised raw material, i.e. coal. 

In many cases, companies may also get 

coal mining leases at rates lesser than 

market value. As the Coalgate highlights, 

government’s allocation of coal blocks 

led to a loss of Rs 1.86 lakh crore to the 

exchequer. xi 

Other than these, the electricity utilities 

also get subsidies from state and Centre 

so that they can keep the tariffs lower 

for consumers. According to a report by 

Information and Credit Rating Agency 

of India Limited (ICRA), the subsidies 

for power distribution companies were 

projected to rise to Rs 60,000 crore by 

March, 2014. xii 

In addition, as per a study by World 

Institute of Sustainable Energy, coal 

power also benefits from hidden 

subsidies. It enjoys 68 paise per kWh of hidden subsidies. xiii 

To add to this, there is no proper accounting of environment, 

displacement and pollution costs of coal mines and thermal 

power plants. A 2006 report by National Environmental 

Engineering Research Institute says the external costs of a power 

project are highest for a coal-fired power plant at Rs 0.1067 per 

kilo watt hour. xiv On the other hand, a TERI report done for the 

Planning Commission states that the external costs of power 

generation from coal transportation to coal mining is estimated 

to be Rs 0.90 per kilowatt hour. Out of this, Rs 0.15/kwh is 

compensated and the remaining 0.75/kwh is not compensated. 

This also does not include cost of carbon emissions and cost 

of displacement. This report also puts the external cost of coal 

mining at Rs 246/tonne of coal mined. Of this, Rs 126.49 /tonne 

is compensated and the rest Rs 119/tonne is not. This again does 

not include health costs of coal mining. xv 

3. In 2009-10, state governments alone gave a subsidy of almost Rs 

20,000 crore to state electricity utilities so that they can keep the 

tariffs lower. xvi 

4. The price of coal is constantly rising. Due to limited coal reserves, 

state-run Coal India has been unable to meet its target for six 

years in a row, and with power producers looking for expensive 

imported coal, tariffs are bound to rise. xvii There has been a 

50% increase in the cost of international procurement of coal 

for Indian power producers since 2004. xviii This has resulted in 

the rise in cost of coal power generation. In the last 10 years, 

power generation prices have risen by more than 300 per cent. 

xix 

As a result, utilities have passed on the costs to consumers. 

Subsidised power users like Delhi have seen a rise in power tariffs 

by more than 25 per cent in the last few years. xx 

5. Meanwhile, quietly and steadily, prices for renewables are coming 

down. At the beginning of 2011, a ground-mounted MW-scale 

solar power project in India cost around Rs 14m (EUR 2.15m, 

USD 2.8m) per MW. Today, this has fallen by almost 50% to 

around INR 7m (EUR 1m, USD 1.4m) per MW. The cost reduction 

has largely been driven by a drop in module prices from USD 1 


7

per watt in 2011 to USD 0.65 per watt today. xxi Module prices 

have fallen globally largely due to a condition of acute oversupply. 

Against global demand for 30-35 GW of solar power in 2012, 

available module supply was 50-60 GW, most of it from China. xxii 

6. International Energy Agency estimates that the 300 million 

people without access to electricity in India spend over $60 

billion annually on inefficient and obsolete sources of energy 

like kerosene. This indicates there is a willingness to pay even 

amongst the poor. xxiii 

7. Moreover, decentralised renewable 

energy is already a billion dollar market in 

India. According to the World Resources 

Institute, the off-grid energy access 

market in India lies mostly amongst the 

114 million poorest households of the 

country that earn less than $2 a day. 

Decentralised renewable energy holds an 

annual market of $2.4 billion and the solar 

home lighting market is estimated to be 

around $27.4 million. xxiv 

What are the subsidies available to renewable 

energy users? 

Sr. No. Name of the Product Cost Range(in Rs.) MNRE Subsidy(in Rs.) 

1. Solar Water Heating Systems (2 Sq. Meters) 13,000 – 20,000 6000 – 6600 

2. Solar Cookers 

a)Box Type Solar Cooker 

b)Dish Type Solar Cooker 

c)Scheffler Dish Cooker 

a) 3,500 to 4,200 

b) 6,500 to 8,000 

c) 15,000 to 20,000 

30% of the product cost 

(Maximum).In Special 

Category States 

60% of the product cost 

(Maximum) 

3. Solar Home Lighting Systems 11,000 – 15,000 

4. Solar Street Lighting Systems 17,000 – 22,000 

5. Solar Lanterns 1700 – 3000 

6. Solar Pumps 1,70,000 / kW 

7. Family Type Biogas Plants (2 Cubic m) 20,000 to 25,000 

8. Small Wind Turbines for off-grid 

applications 

2,00,000 / kW 8,000 to 14,700 (depending 

upon location) 

9. Water Mills 70,000 – 80,000 35,000 

8 


Micro-grid in Dharnai 

MEDIA MANUAL | Micro-grid in Dharnai 9 

© VIVEK M/greenpeace

Give details about the micro-grid that you are 

setting up in Bihar. 

It is a 100 kW plus expandable pilot smart-grid based on 

renewable energy technologies. It uses 280 solar panels to 

generate more than 100 kW of electricity that currently powers 

more than 400 households, who have applied for connections. 

or business package. The basic package 

includes one light connection and a charging 

point totalling 18 watts per household as a 

basic domestic package. 

The micro-grid is based on a bottom-up approach. It begins with a 

certain ambition and can be scaled up based on people’s demands 

and requirements. Being a community-led project, it is to be managed 

by electrification committees, which consist of members of the village 

community using the micro-grid. 

The second package includes three lighting 

points and a mobile charging point with a 

total usage of 30 watts. Residents opting for 

fan or television connections would also be 

falling under this package. 

The micro-grid also intends to create a model that is replicable and 

can be used by the government for electrification across Bihar and the 

rest of the country. 

The micro-grid intends to be financially sustainable so as to take 

care of its own operations as well as attract investors and financial 

institutions into the arena of decentralised renewable energy systems. 

Hence, we have involved BASIX and CEED as co-implementers of 

the project. BASIX has the expertise in financially managing a system 

like this, whereas CEED is the organisation that will be the community 

interface in Dharnai. 

The model currently gives two kinds of domestic and a commercial 

The third is a commercial package for shops 

and businesses which includes one lighting 

point, one mobile charging point and a street 

light. It uses 18 watts of electricity. The 

package takers will also be allowed to use a 

fan connection. 

Other than this, the micro-grid also 

includes 10 solar-powered water pumps of 

3 horsepower capacity each for irrigation 

and 60 solar street lights. The water users 

group in different tolas will manage water for 

agriculture through the solar water pumps. 

DISTRIBUTION: 100 KW microgrid using solar power 

70 KW 

for shops/ 

household 

30 KW 

for irrigation 

This is a replicable model 

to inspire electrification of 

19,000 villages in Bihar 

10 

MEDIA MANUAL | Micro-grid in Dharnai

A solar powered street lamp at the Jitkoria tola, Dharnai Revenue Village ©VIVEK M/greenpeace 

MEDIA MANUAL | Micro-grid in Dharnai 

11

What is a micro-grid? 

Micro-grids are distribution grids that can be developed using a 

bottom-up approach, just like home energy systems and off-grid 

systems, and using locally available renewable energy sources to 

meet local energy demand. However, unlike other island systems, 

power supply is more flexible and reliable because there is the option 

to source it from local or centralized generation, according to its 

availability and price. In this way, cheap power can be accessed 

from the grid during low demand periods, while local supply can be 

activated to power local demand during blackouts in the main grid. 

Furthermore, micro-grids can control the 

balance between local supply and demand; 

therefore manipulate the power flow at the 

point of common coupling with the grid. This 

enables the micro-grid to support the larger 

grid in managing power quality as well as 

supply security, by injecting or consuming 

active or reactive power when required, and 

aiding in black-start situations. xxv 

If it is such a great tool then why aren’t 

micro-grids being used already? 

There are a few reasons for this, but the main issues are design 

simplicity, system cost and the lack of awareness of its benefits. For 

application in rural electrification, the system design is somewhat 

more complicated than a simple off-grid distribution system because 

of the additional capability of being able to switch between gridconnected 

and island operation modes. The associated system costs 

are also higher because of the additional control structure that is 

required. However, if these systems can be designed using standard 

components in such a way that they are replicable, the costs will 

eventually come down as more micro-grid structures are implemented, 

due to economies of scale. 

Furthermore, the initial investment need 

not be for the final full micro-grid solution 

because micro-grids can begin from 

standalone energy home systems and offgrid 

distribution systems. Therefore, it gives 

flexibility in the timing of financial investment, 

starting with a simpler system and adding 

features as time goes by until it is fully 

integrated with the central grid system. xxvi 

Why are you setting up a micro-grid in Bihar? 

Bihar is amongst the top growing states in India. However the 

served districts. To date, rural electrification 

biggest challenge to Bihar’s growth trajectory is the lack of access to and energy access has been tackled by 

sustainable electricity. It is also a state with the lowest per capita succeeding governments through centralised 

energy consumption in India, with a mere 122.11 units, compared infrastructure delivery systems. Greenpeace 

to the national average of around 778.71 units. Even today, 82% believes that distributed micro-grids that 

of the state lacks access to electricity. While a lot of advancements use locally abundant fuel sources is a more 

have been made over the last few years, the lack of energy still effective, cheap and sustainable way to 

remains a crucial issue. 

provide access to energy in Bihar. 

The state of Bihar faces chronic electricity supply shortages resulting 

from inadequate investments in generation and distribution capacity. 

High poverty paired with the population’s geographic concentration in 

remote, rural areas form barriers that limit the logistical and financial 

viability of extending centralised electricity infrastructure to under- 

Greenpeace has been campaigning to bring 

about a shift in India’s energy pathway from 

dirty fossil fuel to clean energy. We feel that 

renewables is the key to energy access issues 

in India and a solution to climate change. 

12 


Even today, 82% of Bihar’s population lacks access to electricity ©SUBRATA BISWAS/greenpeace 


13

What is Greenpeace’s motivation behind this 

micro-grid? 

Greenpeace has been campaigning to bring about a shift in the energy 

pathway of India from dirty fossil fuel to clean energy. We feel that 

renewable is a key answer to energy access issues in the country and 

a solution to climate change. 

As part of our renewable campaign, we have been working in Bihar 

since 2010 to bring about this paradigm shift in its energy planning 

and investment. It is implementing the energy access campaign and 

has established the political momentum in the state towards DRE as 

a tool to remove energy poverty. The project aims to challenge the 

dominant perception that centralised addition will deliver power to all 

and instead campaign to create political and policy champions who 

will support decentralised systems running on renewable sources Vs 

coal or nuclear to provide electricity access to millions who currently 

don’t have it (even if they are on the grid). 

In a meeting with former Bihar Chief Minister 

Nitish Kumar in 2012, Kumar had suggested 

that Greenpeace should display the viability 

of DRE through a model that can attain 

what we are campaigning – a model that his 

government was willing to replicate across 

the state. So here we are with a pilot smart 

micro-grid model in Dharnai that can lead 

Bihar out of an endless energy crisis. Our 

next step will be to persuade and impel the 

Bihar government to scale up and replicate 

the model at the state-level and put Bihar on 

a novel but sustainable development path 

powered by clean energy. 

Greenpeace India starts laying out the electricity cables for street lights in Dharnai. 

This is first time in decades that Dharnai’s streets will be lit up © SUBRATA BISWAS/greenpeace 

14 


Why Dharnai in Bihar? 

After an extensive field research and 

villagers maintain a progressive attitude. The total land holding is 

assessment based on various feasibility 1,500 bigha xxvii and the villagers have their agriculture activities in 

criteria, Greenpeace selected Dharnai village around 1,200 bigha. Agriculture has been the predominant economic 

panchayat in the Makhdumpur block of activity in the village and there has been a substantial energy demand 

Jehanabad district in Bihar. The village is from irrigation for agriculture. Our survey shows that about 4,03,125 

located 80km from Patna (on the Patna- cubic meters of water is required annually for irrigation purposes 

Gaya highway) and also has a railway and cumulatively the expenses for irrigation is about Rs. 12,54,000 

station, Barabar Halt. There are around 450 annually. With increasing diesel prices, these expenses will continue to 

households in the village with a population rise further. 

of around 2,400 people. 

The village settlement area, comprising houses, shops and other 

Thirty years ago, due to various reasons, the buildings, is around 100 bigha. This has substantial number of 

village lost its electricity infrastructure. Since shops with various commercial activities, like local eat-outs, bank, 

then, the villagers have suffered due to lack etc., constituting the commercial demand for energy. The households 

of electricity and have been waiting to get are spread across the village into four clusters. The load from the 

electricity back to the village. 

households mainly depend on lighting, use of fan, mobile charging 

and in some cases television. All these make Dharnai an ideal case for 

However, despite the lack of electricity, the Greenpeace’s demonstrative project. 

LOCATION 

Located between Patna-Gaya 

highway and Barabar Halt railway 

station, 80 kms away from Patna 

Population 

Around 2,200 

No. of households 

4 clusters comprising 

450 households 


15

How will the micro-grid operate? 

The micro-grid runs on solar-powered photovoltaic panel system 

installed on the roof-top of government buildings, private buildings 

and residences. There is a battery bank with smart inverter in each 

cluster. Each cluster is divided into 20 kW, has total 70 kW 

No. of Solar 

–Panels 

No. of 

Batteries 

No. Of 

Inverters 

No. of 

house-holds 

280 224 15 500 10 

capacity for the lighting and 30 kW for 

minor irrigation purposes. Irrigation is 

through installation of 10 solar pumps with 

a capacity of 3 horsepower each. 

No. of Pumps, 

3 hp Total-100 Kw 

Who will take care of the operation and 

maintenance? 

The micro-grid will be operated and maintained by BASIX and CEED 

with the help of village electrification committees. Greenpeace will play 

an active role in training of the community so 

that they can maintain the micro-grid. 

16 


What is BASIX and CEED and what are their roles? 

CEED or Centre for Environment and Energy to rural poor households under one umbrella. They have recently 

Development, represents a network of NGOs, ventured into energy services for the poor through BASIX Urja and 

CSOs, think-tank organisations in Bihar to they aim to focus on micro-grid based energy delivery in the future. 

support renewable energy development in http://www.basixindia.com/ 

the state. CEED is primarily supported by 

Greenpeace and is working on the Dharnai The Operator (BASIX Urja) will serve three major functions: community 

project towards garnering grassroot-level engagement; operation and maintenance; and payment collection. 

support and building awareness about microgrids 

and enhancing energy access in the Community Engagement – Community mobilisation and awareness 

state of Bihar. 

raising activities like face-to-face interactions and demonstration 

http://ceedindia.org/ 

at group meetings, village meetings, etc., will be organised in order 

to communicate functions and benefits to potential users. These 

BASIX is a livelihood promotion institution activities will continue even after the launch to further increase the 

established in 1996, working with over 3.5 number of users as well as to collect user feedback for improvement. 

million customers, over 90% being rural 

poor households and about 10% urban slum Operation and Maintenance – BASIX Urja’s trained local technician 

dwellers. BASIX works in more than 17 states will monitor the system performance on a daily basis; set up new 

across the country. Its mission is to promote connections (e.g. wiring, installing meters); provide the first level 

a large number of sustainable livelihoods, of support for technical problems; and conduct minor repair and 

including for the rural poor and women, maintenance work. For the major technical problems, such as 

through the provision of financial services equipment replacement, developer’s engineer will provide the second 

and technical assistance in an integrated level of support. 

manner. They strive to yield a competitive 

rate of return to its investors so as to be able Payment Collection – BASIX Urja will enrol domestic, commercial 

to access mainstream capital and human and agricultural users, keep track of electricity usage of each user, 

resources on a continuous basis. BASIX also calculate the billing amount and collect fees from users on a regular 

provides a comprehensive set of livelihood basis. Multiple models and tools such as pre-payment and digital 

promotion services which include Financial meters are being tested and used in the market to reduce transaction 

Inclusion Services (FINS), Agricultural/ costs and increase payment rates and revenues. The team will 

Business Development Services (Ag/BDS) determine which ones are most appropriate for this project after the 

and Institutional Development Services (IDS) detailed analysis phase. 

Community Engagement 

Operation and Maintenance 

Payment Collection 


17

BASIX and CEED have formed a consortium with Greenpeace to 

implement this project jointly with the help of the technical developer, 

Kripa Solar. Once the project is completed, it will be managed by 

BASIX Patna, who will be responsible to maintain and operate it. 

Greenpeace will use this model to advocate 

for further replication of such models in the 

state and communicate to government and 

policy makers to bring desired change in 

policy to further multiply it. 

What will be Greenpeace’s role once the 

micro-grid is set up? 

The objective of the micro-grid is also to discover a micro-grid 

management and ownership model that is operationally and financially 

sustainable. To create an environment that is conducive to large-scale 

development of smart renewable energy-based micro-grids across 

Bihar and the rest of India. Greenpeace will continue to campaign 

towards this aim. 

Greenpeace will also suggest a regulatory framework required 

for scaling up this concept. We will continue to prod the Bihar 

government to release a roadmap for upscaling and replicating the 

Dharnai model. 

On a functional level, the micro-grid in Dharnai has been setup by 

Greenpeace and we will continue to oversee 

the operations and maintenance of the 

micro-grid for the next few years. Greenpeace 

will be actively involved in the training of 

community in Dharnai in the maintenance 

and operation of the micro-grid. Once the 

community is fully trained to handle the 

micro-grid, a cooperative society will be 

setup. After the quality benchmark and 

fulfilling each and every legality, Greenpeace 

and BASIX will exit out of the day-to-day 

operations. 

Why do you think people in Dharnai will accept the 

micro-grid? 

Dharnai has all the ingredients for a success story but lacks 

access to energy that will drive the success. Having last seen 

electricity in 1981 and since then running from pillar to post to get 

an electricity line for their village, the micro-grid will be a game 

changer for Dharnai residents. 

Moreover, the residents have been spending thousands on unreliable 

and expensive kerosene and diesel for their energy needs. With 

How is it a community-driven project? 

Dharnai micro-grid has been set up with all due permissions from the 

gram sabha, panchayat and the people of Dharnai. Dharnai residents 

have been involved in the project right from the start. 

We have taken explicit care so that residents can make informed 

choices. The community has been part of the awareness drive as well 

the solar-powered micro-grid, they will get 

regular and sustainable supply of electricity. 

The tariffs have been fixed by the village 

electrification committees and BASIX in 

consultation with the residents of Dharnai. 

It will be revised as per the mutual decision 

taken by the VEC and operators. 

as serious discussions about the tariff and 

the working of the micro-grid. The tariffs were 

in fact decided by the community itself after 

mutual understanding and discussions. 

The community is also part of the village 

18 


electrification committees that will handle the 

day-to-day running of the micro-grid. The 

village electrification committees will be the 

interface between the operators and the residents. The committee 

members will not only decide on the demand of electricity and the 

usage but also collection of tariffs. 

A broken and dilapidated structure of what used to functional electricity poles and wires. 

These structures have not been revived in years ©Subrata Biswas/greenpeace 

How is it a bottom-up approach? 

Generally, we have seen that in the centralised electricity production 

system, the electricity load calculation forecast is based on the 

capacity of the power plant, which is in turn based on coal supply 

and the transmission and distribution losses. But in decentralised 

electricity system – in this case the micro-grid – the electricity load 

calculation totally depends on the requirement of one cluster or 

the load survey in one cluster. The micro-grid is a 100 kW system 

right now that can be scaled up as per the 

demand and requirement of the residents. 

So instead of a fixed capacity that can cater 

to only certain requirements, the capacity of 

the micro-grid can be increased as per the 

demand. So it is one of the best case studies 

for the bottom-up approach. 


19

What is the USP of this micro-grid? How is it unique? 

A first-of-its-kind… 

The USP of the micro-grid is its model – from darkness to light 

in three months. For 30 years, the village was deprived of a vital 

resource like energy. This lifeline has been made available to them 

in just three months. 

The micro-grid empowers the people of Dharnai to not only meet their 

basic needs but also their aspirations. It gives the young opportunity 

to dream of not just a comfortable earning but hold the ambition of 

joining the world in its race to growth. Small-time businessmen who 

want to make it big by selling more. Farmers who want to innovate to 

get the best harvest. 

It provides electricity round the clock 

to a village that would otherwise never 

be electrified under the centralised grid 

paradigm. It provides electricity that not just 

gives residents the basic fan and light but the 

power to fire their ambition. 

For the governments, it’s a model that can 

fulfil their governance goals, and for the 

financers it’s an investment opportunity. 

It is also lighting up one/two bulbs and one point. 

How is it different from other DRES? 

It is lighting up a bulb and a charging point for mobiles round-theclock. 

Most DRES systems provide electricity only for about 6-7 

hours. In addition, the micro-grid can be scaled-up so as to meet the 

aspirations of the residents. So later if people 

buy televisions and other equipment, the 

micro-grid’s capacity can be increased. 

If people are not willing to buy electricity how will 

it be safe and secure? What will ensure the safety of 

the hardware (panels, wires, poles)? 

First, the village electrification committees comprising of residents 

of Dharnai will be in charge of the security of the micro-grid. Already 

more than half the households in the village have registered for buying 

electricity from the micro-grid. That in itself is a social protector. 

The society and the community that is using it will be the physical 

guarantee for the micro-grid. It is in their 

interest that the micro-grid continues to run. 

Especially, since they have struggled without 

electricity for the last 30 years. 

How is it an expandable model? 

The micro-grid is based on Greenpeace’s E[r] cluster approach, which 

we had recommended to the state government. Considering the cost 

and infrastructure involved, time taken for installation, catering to 

electricity requirement of a population of more than 3,000, it takes very 

minimum time, minimum investment and minimum infrastructure. Most 

importantly, it runs on minimum maintenance cost as compared to 

centralised grid-based electricity system. 

It is a social development-based energy business model. It is under 

community ownership, which addresses not 

only the lighting needs of the village, but also 

includes irrigation, empowers women and 

BPL families, improves education, takes care 

of poverty alleviation and addresses other 

issues. 

There are numerous funds under various 

government departments like panchayati 

20 


A solar powered street lamp seen at the Bishunpur tola, Dharnai Revenue Village © VIvek m/greenpeace 


21

aj, rural development, energy department, rural infrastructure and 

Bihar Rural Livelihood Promotion Society projects (BRLPS). BRLPS 

is a registered body of government of Bihar, which is responsible for 

rural development with livelihood improvement mission, funded by the 

World Bank. These funds can be utilised for 

expanding and replicating Dharnai-like models. 

More so, because people are demanding 

access to electricity and the Dharnai model is 

about that. 

Is over-drawing of electricity possible in the 

micro-grid? If yes, how will it be managed? 

Though people have been educated about the micro-grid and about 

the technical issues involved, there can always be instances of overdrawing 

of electricity. This can lead to tripping of the micro-grid and 

hence electricity failures. Metering will ensure that households don’t 

use more than the package they have purchased. Also, installation 

of smart electricity metres will ensure that 

over usage does not happen. These digital 

metres can’t be tampered with. Such metres 

are essential for the smooth running of the 

micro-grid. 

How will we avoid theft and pilferages? 

Metering will ensure that households don’t use more than the package tampered with. Such metres are essential for 

they have purchased. Also, installation of smart electricity metres will the smooth running of the micro-grid. 

ensure that over-usage does not happen. These digital metres can’t be 

If generation of electricity is more than what is 

required, how will the micro-grid channelise the 

excess electricity? 

Greenpeace micro-grid is designed on the E[e] cluster approach 

where, in case of excess generation, power can be supplied to 

another cluster or village near the grid. Also, the micro-grid is 

designed to be grid interactive, which means that it can sell energy 

back to the centralised grid. So in future 

when the centralised grid is ready to buy back 

electricity from such micro-grids, Dharnai 

model will be ready. 

Will the generation of electricity and hence supply 

be affected during Monsoons or cloudy days? If 

yes, how will be the promise of round-the-clock 

electricity met? 

Yes, it is a challenge to supply round-the-clock electricity during 

prolonged rainy days, cloudy days and foggy season in winter. But 

we are checking the demand and supply management and will store 

the electricity in the battery bank when the generation is low. We 

will also regulate the supply and usage of electricity. Greenpeace, 

BASIX and CEED will also look at ways of 

complementing the electricity production 

through bio-mass so that it can be integrated 

into the system based on the demand. 

22 


What is the process to get the benefit from 

this project? 

The project will run as a private business 

model and will supply secure electricity to 

people when it is needed. However, there 

are set of rules which need to be adhered to 

get the maximum benefit out of the project. 

The community neesd to provide maximum 

support to the project as it is for direct benefit 

of the village. 

First and foremost, in order to enhance the effectiveness, a nominal 

joining fee will be charged so that the community can also provide 

guarantee to equipment and machinery. Interested households 

can approach the local office in the village to get connection after 

depositing the joining fee and form. Based on the assessment and 

requirement, electricity connection will be provided which comes with 

an electricity meter. 

What all equipment can one run on the connection 

one takes? 

Whatever machines need to be used by the 

customers, they should get prior approval 

or agreement with the operators, BASIX and the village electrification 

committees. There will be technical people to advice on what sort of 

machinery can be used. 

Is there any risk in terms of electrical shock? 

There are very less chances of severe 

electricity shocks as these systems are low 

voltage and not high voltage, and as part of 

the installation process we will be giving safety demonstrations 

and ensure equipment used are shock-proof. Also, there will be 

technical people in the village who will be responsible for handling 

these situations. 

Who will be responsible for such risk? 

The company will not be responsible for 

any person being impacted by shocks or 

accidents, as it would be the fault of the 

person. The company will only be responsible for the successful 

operation of the plant and ensure it provides the agreed quantity of 

energy. 

Who will be responsible for technical assistance? 

The operating company, BASIX, will be will take care of any technical aspects that may arise. BASIX will be 

responsible for the complete system and responsible for all the operation and maintenance work. 

What is the system or technology of this project? 

Currently, the project will be using solar supply to the village and it will use latest technology in terms of wires 

photovoltaic technology to produce energy to and metering system. 


23

Who will be responsible for security and safety? 

BASIX, village electrification committee (VEC) and joint monitoring Before the complete handover, the village 

committee is responsible for the security and safety of the micro-grid electrification committee will be legally 

assets. All the assets have been insured against theft and accidents. registered under the society’s act. That is the 

For keeping people engaged in the security of the assets, a joint body that will take decisions in case of theft or 

monitoring committee will be formed involving all stakeholders. damage of assets. 

What about efficient use of electricity and water? 

We will provide the most efficient systems for both lighting and use water in a conservative manner. 

pumping solutions. We will also advocate the usage of drip irrigation to 

What will happen to the current solar equipment 

being used by the villagers? 

These systems will be separate and not part of our system, customers 

are free to utilise them for their personal usage. We can provide 

technical advice on how best to utilise them 

without affecting the micro-grid system. 

Will you distribute solar pumps for the agriculture 

farms or the same electrical pumps will run? 

The entire system will be installed by the company and there will be 

a pay-per-use process, i.e., customers will pay as much as they use. 

The tariffs will be fixed accordingly and informed in prior notice. There 

will be advice on how the old pumps can be 

used and what sort of agricultural practices 

can happen. 

24 


Tariff, Funding 

and maintenance 

MEDIA MANUAL | Tariff, Funding and Maintenance 25 


What is the tariff structure? 

Electricity services will be provided according to following packages: 

Package I: 1 LED light of 6W, mobile charging point of 12W and Solar Street Light 

Total consumption of electricity 

18W 

Total monthly unit consumed 

8 UNIT 

Rate per unit Rs 9.50 

Monthly tariff Rs 75 

Security deposit Rs 300 

Wiring cost Rs 300 

Package II: 3 LED light of 6W each, mobile charging point of 12W and solar street light 


30W 


13 UNIT 

Rate per unit Rs 11 


Security deposit Rs 500 

Wiring cost Rs 500 

Note: 

1. Extra light will be charged @ rate of Rs 35 per month 

2. Customer joining under Package I and asking for two bulbs will be considered as Package II category and 

accordingly the customer has to pay the security deposit and wiring fee. 

3. All other appliances like fan, TV, etc., will be charged as per Package II unit rate. For example, a fan of 40W will 

consume 15 units (approx.), if it runs for 12 hours every day. 

4. Appliances like heater, iron, geyser, cooler, air conditioner, cooker, toaster, etc., will not be allowed to be used under 

this project. Customers are requested to check with the local project office about such appliances. 

Commercial Package: I LED light of 6W, mobile charging point of 12W and solar street light 


18W 


9 UNIT 

Rate per unit Rs 13 


Security deposit Rs 1,000 

Wiring cost 

As per actual 

26 

MEDIA MANUAL | Tariff, Funding and Maintenance

Note: 

1. Each commercial establishment will have energy plan and accordingly their monthly rental will be fixed. 

2. Extra light point will be charged @ rate of Rs 40 every month. 

3. All appliances like TV, computer, printer, etc., for commercial establishment will be charged @ Rs 13. For example, a 

fan of 40W will consume 15 units (approx.), if it runs for 12 hours every day. 

4. Appliances like heater, iron, geyser, cooler, air conditioner, cooker, toaster, etc., will not be allowed to be used under 

this project. Customers are requested to check with the local project office about such appliances. 

The consumers will be charged on a monthly 

basis to make sure that they get secured 

quality supply of electricity. It is important 

that each consumer pays in time to ensure 

that the project is successful and it helps 

people bring a positive change in their life. A 

timely payment will help us to serve better. 

At any given point of time, the rate will be much cheaper (three time) 

than any other existing micro-grid project in India. The rate will also 

be determined based on the sustainability, affordability and reliability 

for all. In all probability, a consumer will still be paying less than their 

current energy bill. 

Is the rate of electricity same for rich person 

or poor? 

The rates are not based on rich or poor, 

but based on category like household, 

commercial and agricultural usage. The rate 

for the services is not classified based on any class but based on its 

type and quantity of usage (number of units of electricity used). 

Who will pay for common facilities like street 

lighting or for Panchayat Bhawan or schools? 

The project team in consultation with the local 

body such as gram sabha will decide the 

mode of payment. In ideal scenario, we would 

require each user to pay from their pocket. 

For example, school needs to pay from their 

fund, but for street lighting the fee can be shared by the villagers. 

This should be implemented with the help of the gram sabha. 

However, the project team will have no problem if the gram sabha 

takes the responsibility of making payment for all common facilities 

in the village. 

You say that solar is getting cheaper. Will the tariff 

be reduced in the coming years? 

Tariff was set in consultation with the village 

residents. Future tariffs will again be revised 

in consultation with the users. Village 

electrification committees will also play an 

important role here. 

The tariff is dynamic in nature and will be determined on periodic basis 

in consultation with all stakeholders, including community; therefore a 

rate card will be published on a regular basis in consultation with and 

approval of the gram sabha. 

MEDIA MANUAL | Tariff, Funding and Maintenance 

27

What was the process adopted to come to the current 

tariff? Is there willingness to pay? 

The tariff was decided by the village electrification committees and 

BASIX in consultation with the residents of Dharnai. To begin with, 

Greenpeace had met the four Village Electrification Committees 

(VECs) with a draft tariff structure. The VECs in turn took feedback 

from communities and tolas they represent on the tariff structure. 

Once a consensus was built on the tariff structure, there was a final 

meeting with the panchayat and the sarpanch. The tariff structure was 

finalised and signed by all four VECs, BASIX and panchayat. 

VECs and operator can revise the tariff based on the maintenance 

and operation cost after the same process of 

consultation with all villagers. 

As per Electricity Act, 2003 and Bihar 

Electricity Regulatory Commission norms, the 

tariffs can be decided after mutual agreement 

of villagers and operator. So every household 

will have to give their agreement on the tariff 

for it to be finalised. 

electricity from the micro-grid is more expensive 

than the electricity available from the grid. How 

do you intend to make the micro-grid sustainable? 

Yes, currently the electricity from the micro-grid is more expensive 

than the electricity provided by the centralised grid. However, the 

question here is of access to electricity or no electricity at all. 

Moreover, if the external costs of a centralised grid-based power 

system are added, it is far more unsustainable than a decentralised 

system. Hence, the crucial question that faces us is – how long can 

we continue to bear the burden of a flawed and intensive setup? It is 

only obvious to shift to a smarter and less complicated structure that 

truly delivers. 

The main source of income for villagers in 

Dharnai is agriculture. The per capita income 

of the village is very high, except for the 75 

BPL [below the poverty line] households. 

As per our survey, the willingness to pay is 

very high in Dharnai. Also, a village that did 

not have electricity for 30 years will see the 

benefits of 24x7 electricity supply. 

How were the electrification committees formed? 

The micro-grid divides Dharnai in four clusters and each cluster (tola) Combining the four VECs, a cooperative 

has a mix of all castes and both below poverty line and above poverty society will be formed for Dharnai, which 

line families. For each tola, there is a Village Electrification Committee will have a chairman, deputy chairman, 

(VEC) which comprises 20 members – five working group members secretary and treasurer. This cooperative 

with the chairman, deputy chairman, and secretary. To ensure gender society will look at the overall development 

balance, each VEC working body has three female members. Each of the micro-grid regarding financial 

VEC is responsible for the maintenance and security of the microgrid 

infrastructure and the dispute between consumers in their tolas. security and maintenance. 

returns, tariffs and consumer disputes, 

In total, there will be four VECs in Dharnai to look after the overall 

running of the micro-grid. 

28 

MEDIA MANUAL | Tariff, Funding and Maintenance

Paying Rs 10 a day for mobile charging is different 

from paying a larger amount per month. How are you 

taking that into account? 

As mentioned earlier, Dharnai has been 

without electricity for 30 years. They have 

been dependent on expensive and inefficient 

fuels like kerosene and diesel. Some have 

even bought single solar panels to light a bulb 

or power a television. 

They can understand and have realised the benefits of round-theclock 

electricity. According to an estimate by the International Energy 

Agency, the 300 million people without access to electricity in India 

spend over $60 billion annually on inefficient and obsolete sources of 

energy like kerosene. This indicates there is willingness to pay even 

amongst the poor. xxviii 

What if people refuse to pay the tariffs or are 

unable to pay? 

At the time of applying for a connection, the 

consumer enters into an agreement with the 

VEC and the operator. The agreement lists 

out the terms and conditions, which include 

dues. In case of non-payment of dues, the VEC of that particular 

tola will take up the case and decide to disconnect the electricity 

connection and also reserve the security money deposit. The VEC and 

the operator will take the decision in case of non-payment of dues. 

disconnection in case of non-payment of 

In your inaugural press conference, you said it will 

be cheaper than other micro-grids. How? 

The tariffs under the micro-grid in Dharnai 

start from Rs 9.50 per unit and go up to Rs 

13 per unit. Most micro-grids are currently 

charging above the current rate of unit we are charging. Moreover, we 

also supply more power than other micro-grids. 

Greenpeace solar- 

Other solar-based 

Husk-based micro- 

People 

People 

based micro-grid 

off-grid micro- 

grid model in 

engagement in 

engagement in 

tariff 

grid models in 

Bihar 

Greenpeace micro- 

other solar-based 

different parts of 

grid model 

microgrid model 

the country 

in different parts 

of the country 

Rs 9 per unit 

Rs 30 per unit 

Rs 20 per unit 

Tariff decided as 

No people 

minimum tariff for 

minimum tariff for 

tariff 

per the people 

participatory 

household 

household 

participatory 

method used in 

method 

other micro-grids 

Source: E[r]cluster report, MNRE data. 


29

Inside the mukhiya’s house, lit up by solar powered CFLs ©VIvek m/greenpeace 

30 MEDIA MANUAL | Tariff, Funding and Maintenance

What will be the running costs? 

The total investment in the micro-grid is operational cost will be around 13 lakh each year to maintain and 

Rs 2.75 crore. The total maintenance and operate the system. 

Is Greenpeace earning anything from this project? 

Greenpeace is a non-profit organisation. It decentralised renewable energy system, like the micro-grid in Dharnai 

does not earn from its campaigns. The microgrid 

is part of our campaign to 

is a demonstration of our solution to India’s energy access problems. 

showcase 

You will set up an irrigation pump set. How will it 

work? 

The solar-powered irrigation pump sets have 

been installed by BASIX in consultation with 

the VECs. The tariff has been fixed by the 

VECs on a per hour usage basis. The water pump sets will also 

work on the franchise model so that local entrepreneurship can 

be developed. 

What is the cost of the irrigation pump set? What is 

the tariff? 

The cost of one pump set is about Rs 3.5 

lakh. The tariff is not decided yet by the VECs and BASIX. 

How and from where is Greenpeace raising funds for 

the micro-grid? 

The process of raising funds mainly involves 

contacting existing supporters. Based on the 

work we have done in Dharnai as part of our 

Climate and Energy campaign, we pitch for 

funds from existing and new supporters. This 

is done after studying their giving pattern and inclination towards a 

particular cause and Greenpeace projects. We also regularly research 

and look for potential donors who can possibly contribute to our 

projects like people from IT background, Forbes Indian 100 list, 

people from solar industry, RE sector, etc. 

When does the project break even? 

The project is not designed to make profits be sustainable from a long-term perspective. Hence, the tariffs are not 

(as there is no element of subsidy or financial designed to make profits from this project, as it’s a pilot project and 

incentive included in this – the project is Greenpeace is a non-profit organisation. What this pilot intends to do 

completely funded by Greenpeace). The is establish a working model at lowest tariffs (sufficient for the project 

tariffs are designed to meet the operation to be sustainable) and provide the basis for designing an appropriate 

and maintenance costs for the micro-grid to financial mechanism and incentive for enable financial breakeven for 

micro-grid projects. 


31

Investor-friendly 

micro-grid 

32 

MEDIA MANUAL | Investor-Friendly Micro-grid 


How is it a business model? 

The micro-grid is designed to be sustainable designed to prove that micro-grids can operate and generate revenue 

from a long-term perspective, that is, 

to ensure sustainability. However, with the right financial incentive 

to provide for efficient operation and 

from the government, it can become an attractive business with huge 

maintenance of the micro-grid. The model is potential for providing energy to rural households. 

Why do you think investors will be interested in 

investing in a micro-grid meant for rural areas? 

Off-grid electricity systems or DRES is 

already a billion-dollar market in India. 

According to the World Resources Institute, 

the off-grid energy access market in India 

lies mostly amongst the 114 million poorest 

households of the country that earn less than 

$2 a day. Decentralised renewable energy 

holds an annual market of $2.4 billion and the 

solar home lighting market is estimated to be around $27.4 million. xxix 

In terms of opportunity for the investors, even at a peak demand 

of 1 kWh per household, by 2020 the country will have 100 million 

households still without access to electricity. There is thus a 100GW 

opportunity to serve this market with off-grid energy. The Off-Grid 

Business Indicator report released by the Solar Energy Foundation 

ranks India highest among the top five off-grid markets in the world. xxx 

Once Greenpeace is out of the day-to-day running of 

the micro-grid, how will it get investment routed to 

micro-grids? 

The objective behind setting up the microgrid 

was to establish an investor-friendly 

business model that ¬attracts financers. 

Besides, a host of policy changes and 

regulatory mechanisms will be required to 

make it an overall success. Greenpeace will 

be campaigning to get the Bihar government 

to announce a pathway to replicate the 

micro-grid. This, along with priority to 

DRES, will help in creating an environment conducive for investment. 

Greenpeace will also be pushing the investor and business community 

to invest in DRES. 

Greenpeace will use the Dharnai model to campaign with the finance 

and investment community to put more funds in similar DRES models. 

The success of this model will also enable the Bihar government to 

present this model under UNFCCC’s Nationally Appropriate Mitigation 

Actions (NAMA) proposal for financing of DRE. 

MEDIA MANUAL | Investor-Friendly Micro-grid 

33

The way ahead 

34 

MEDIA MANUAL | The Way Ahead 

Solar panels atop the Panchayat Bhavan, Dharnai Revenue Village © VIVEK M/greenpeace

What are your plans once the micro-grid 

is established? 

Dharnai micro-grid is one of the biggest 

demonstrations of solution work by 

Greenpeace, and at the end of the project 

Greenpeace aims to develop an iconic and 

exemplary DRES model. 

Greenpeace will use this model to get the 

government to announce policy measures 

and a separate legislative policy framework 

for distributed electricity delivery system by 

showcasing successful on-ground feasibility 

and viability. Thus, securing and enhancing 

investment in DRES. 

We will use this model to campaign and convince the government to 

replicate the model at a wider scale in Bihar. Greenpeace will prod the 

government to establish a pathway to replicate the model. 

The success and impact of the Dharnai model will support and 

enhance investment in DRE systems. This will be through campaigning 

for investment in favour of this alternate and sustainable model of 

growth. It will also be used to enable Bihar’s proposal for climate 

finance under the NAMA proposal in favour of similar projects. 

We will continue to raise awareness amongst villages in Bihar so that 

they can also demand an energy revolution akin to Dharnai. 

How is it a replicable model? 

The way the micro-grid has been designed, be connected to a smart-grid anytime. 

it can be put up anywhere within three 

months without massive land and other The Dharnai model is based on Greenpeace’s E (r) cluster report. It is a 

resources. All that is required is policy modular system that uses standard components and hence is easy to 

support and government will to execute it. replicate across wide areas with varying geographic characteristics. 

The tariffs and operation and maintenance 

are all in consultation and agreement with However, detailed resource assessment, cost evaluation, demand 

the residents, making it an inclusive model. profile forecast and power system simulations are required to see if a 

Moreover, it is grid-interactive and hence can particular micro-grid design is viable in a specific location. xxxi 

Solar panels installed on the Kisan Training Centre In Dharnai Revenue Village 

© ravi sahani/greenpeace 


35

The Bihar government is busy trying to get coal 

linkages and nuclear power plants and buying 

electricity from other states. Why is it not thinking 

the DRES way? 

The state government is looking at DRES in big way. It has already 

announced different programmes and has done large investments 

within four years on renewable energy, especially DRES. The state 

Name of Department 

Education 

Fisheries 

Urban Development 

Minor Irrigation 

Energy – BREDA 

PHED 

Chief minister house 

Chief justice house 

Bihar government secretariat, Patna 

Bihar police 

Cooperative 

Energy 

government has already announced and 

started different schemes in different 

departments. 

TYPE OF SCHEME 

Solar roof-top - 4115 school will be covered 

Niche machli upar bijli project - 100 MW 

Solar street light programme - 18 cities 

Solar pumps scheme with NABARD 

Saur Sichaie Yojana 

Solar-powered pumps for drinking water 

Solar roof-top - 70 kW 

Solar roof-top - 70 kW 

Solar roof-top 

All jails solar roof-top based micro-grid 

All PACS [primary agriculture cooperative society 

office in each district on bio-mass solar powered] 

Street light programme with rural development 

department 

What role will the government need to play to 

support the expansion of micro-grids? 

The government of Bihar will need to launch a dedicated programme 

for proving energy access through renewable energy-based microgrids. 

The government will have to address various barriers such 

as financial, legal and policy, institutional 

and technological barriers to facilitate the 

expansion of micro-grids based on renewable 

sources in the state of Bihar. 

Villages have never been on the radar of the 

governments. Why do you think the government will 

now show interest in the micro-grid especially for 

rural electrification? 

Villages house about 72 per cent of the country’s population. Hence 

it is a huge vote bank, a large area to be governed, a huge potential 

for revenue and growth. All these factors can no longer be ignored. 

As Dharnai displays, villages are no longer 

content agricultural setups. They are raring to 

go, are new markets and hold a tremendous 

36 

MEDIA MANUAL | The Way Ahead

potential for development and growth. 

India will have to develop its rural areas if 

it intends to sustain its GDP and growth. And energy access will be a 

crucial factor for all this to happen. 

With the money and politics around coal, why do you 

think governments will show interest in renewables? 

There is no doubt that renewables is where 

the money is and where the market is. 

The other sources of energy like coal and 

nuclear are no longer investment friendly. 

The renewable energy market is growing 

and the investments are also increasing 

(over $200 billion globally and around $6 

billion in India according to a report – Global 

Trends in Renewable Investment), and also 

the fact that the energy access market or the off-grid renewable 

energy market is estimated to be around $2 billion. With the rapid 

pace at which renewables are growing and the pace at which they are 

completed, they are increasingly attracting investors as the cost of 

financing for renewables is way much lower than conventional energy, 

at least in India, where the cumbersome process and clearances 

required for conventional power is making it unviable. In this scenario, 

governments are more likely to consider renewable for energy access. 

Considering that the cost of micro-grid electricity 

is expensive than the grid electricity, why will the 

government risk its vote bank by taking up the case 

of expensive electricity? 

Putting the costs in perspective, 

1. The price of coal is constantly rising. With limited coal reserves, the state-run Coal India has been unable to meet 

its target for six years in a row, and with power producers looking for expensive imported coal, tariffs are bound 

to increase. xxxii There has been a 50% rise in the cost of international procurement of coal for Indian power 

producers since 2004. xxxiii In the last 10 years power generation prices have risen by more than 300 per cent. xxxiv 

As a result, utilities have passed on the costs to consumers. Subsidised power users like Delhi have seen a rise in 

power tariffs by more than 25 per cent in the last few years. xxxv 

2. Meanwhile, quietly and steadily, prices for renewables are coming down. At the beginning of 2011, the cost of a 

ground-mounted MW-scale solar power project in India was around INR 14m (EUR 2.15m, USD 2.8m) per MW. 

Today, this has fallen by almost 50% to around INR 7m (EUR 1m, USD 1.4m) per MW. The cost reduction has been 

driven largely by a drop in module prices from USD 1 per watt in 2011 to USD 0.65 per watt today. xxxvi Module 

prices have fallen globally largely due to a condition of acute oversupply. Against global demand for 30-35 GW of 

solar power in 2012, available supply was 50-60 GW, most of it from China. xxxvii 

The cost to the Bihar government in procuring 

electricity is Rs 8.84/unit and the power is 

distributed at Rs 4.11/unit. Clearly, this is 

resulting in huge losses for the state-run 

utilities and leading to the systematic failure 

of the sector in the state. 

It is the prerogative of the government to provide electricity to the 

people. If there is power to villages through a bottom-up approach, 

the vote bank in much happier and this is a win-win situation for 

politicians. 


37

What will be Greenpeace’s role in the policy 

framework? 

Greenpeace will showcase this model to advocate for the right 

policy framework required for further large-scale replication and 

expansion of such models across the state of Bihar, and communicate 

to all stakeholders the benefits of a bottom-up approach to rural 

electrification. 

Greenpeace will play the role of a catalyst – to garner support for this 

approach towards electrification and engage with key stakeholders 

to work towards ensuring that the government of Bihar will include 

renewable energy-based micro-grids as a means for providing rural 

energy access. 

38 

MEDIA MANUAL | The Way Ahead

i 

ii 

iii 

iv 

http://www.greenpeace.org/india/en/about/ 

Providing Energy Access To Rural Bihar: An Analysis And Policy Options, Dr Anjula Gurtoo, IISc, Bangalore 

http://www.worldenergyoutlook.org/media/weowebsite/energydevelopment/weo2011_energy_for_all.pdf 

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTENERGY2/0,,contentMDK:22855502~pagePK:210058~piPK:210062~ 

theSitePK:4114200,00.html 

v 

vi 

vii 

viii 

http://en.wikipedia.org/wiki/Electricity_sector_in_India 

http://en.wikipedia.org/wiki/Electricity_sector_in_India 

http://planningcommission.gov.in/plans/planrel/12thplan/pdf/12fyp_vol2.pdf 

Researchjournali’s Journal of Economics, Vol 2, Jan 2014, Power Sector Plan Outlay and Expenditure in India, Ningappa 

Koujageri, Honakeri P M 

ix 

Sreekumar N and Shantanu Dixit, “Rajiv Gandhi Rural Electrification Program- Urgent Need for Mid-course Correction.” Prayas 

Energy Group, Pune, India, July 2011. 

x 

xi 

xii 

xiii 

xiv 

xv 

http://www.downtoearth.org.in/content/growth-renewable-energy-india 

http://indiatoday.intoday.in/gallery/coal-scam-how-india-lost-rs-1.86-lakh-crores/1/7610.html 

http://www.thehindu.com/business/Industry/subsidies-for-power-distribution-firms-to-rise-to-rs-60000-cr/article5067904.ece 

Future of Coal Electricity in India and Sustainable Alternatives, World Institute of Sustainable Energy 

http://mospi.nic.in/research_studies_post_clearance.htm 

Equitable sharing of benefits arising from coal mining and power generation among resource rich states, TERI, 2013, http:// 

planningcommission.nic.in/reports/genrep/rep_mining_power_generation.pdf 

xvi 

xvii 

xviii 

xix 

xx 

xxi 

xxii 

xxiii 

xxiv 

xxv 

A citizen’s guide to energy subsidies in India, TERI, IISD, 2012 

http://www.firstpost.com/india/how-indias-coal-crunch-is-giving-a-boost-to-solar-energy-1412505.html 

Source: ARRs of Delhi DISCOMs 

http://www.indianpowermarket.com/2013/06/electricity-prices-to-further-increase.html 

Rooftop Revolution: 


http://www.reuters.com/article/2013/03/26/suntech-glut-idUSL3N0CG03820130326 

http://www.bridgetoindia.com/blog/off-grid-solar-lighting-market-in-india-set-for-take-off/ 


E (R) cluster for a Smart Energy Access: The role of micro grids in promoting the integration of renewable energy in India, page 

21-22. 

xxvi 

xxvii 

xxviii 

xxix 

xxx 

xxxi 

xxxii 

xxxiii 

xxxiv 

xxxv 

xxxvi 

xxxvii 

E (R) cluster for a Smart Energy Access: The role of micro grids in promoting the integration of renewable energy in India, page 23. 

Bigha – In Bihar, Bigha is a traditional unit of land &1 Bigha is equivalent to 20 Kattha each worth 1361 sq. ft. (126.44 m2). 




E (R) cluster for a Smart Energy Access: The role of micro grids in promoting the integration of renewable energy in India, page 13. 

http://www.firstpost.com/india/how-indias-coal-crunch-is-giving-a-boost-to-solar-energy-1412505.html 

Source: ARRs of Delhi DISCOMs 

http://www.indianpowermarket.com/2013/06/electricity-prices-to-further-increase.html 



http://www.reuters.com/article/2013/03/26/suntech-glut-idUSL3N0CG03820130326 

MEDIA MANUAL 

39

Greenpeace is a global organisation that uses non-violent direct action to tackle the most crucial threats to 

our planet’s biodiversity and environment. Greenpeace is a non-profit organisation present in 40 countries 

across Europe, The Americas, Asia and the Pacific. 

It speaks for 2.8 million supporters worldwide, and inspires many millions more to take action everyday. To 

maintain its independence, Greenpeace does not accept donations from governments or corporations but 

relies on contributions from individual supporters and foundation grants. 

GREENPEACE INDIA SOCIETY 

Head Office - Bengaluru 

#60, Wellington Street 

Richmond Park 

Bengaluru 560 025 

T +91 80 42821010 

T +91 80 41154862 

Toll free No.: 1800 425 0374 

E supporter.services.in@greenpeace.org 

www.greenpeace.org/india 

Regional Office - New Delhi 

Greenpeace India Society 

#A-23, Second floor 

Green Park 

(near Aurobindo Market) 

New Delhi 110 016 

T +91 11 66665000 

T +91 11 66665010

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