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Government Solar Subsidy Scheme Operating Guidelines 24Aug06
Village Hydro
 
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  Village hydro schemes are built, owned and operated by the communities themselves through Electricity Co-operative Societies (ECS) that are set up for the purpose. These schemes are located in remote areas where electricity access via the national grid is unfeasible.
   
The RERED Project provides assistance to such ECSs to retain independent project preparation consultants (known as ‘Developers’) in the preparation and commissioning of such schemes. Project preparation assistance includes social mobilisation, society formation, site selection, feasibility study preparation including technical and socio-economic aspects, submission of business plans and other documentation for bank loan negotiations, assistance in obtaining regulatory and local government approval, obtaining independent quotations and advise on selection of suppliers. Project implementation assistance will include training of ECS members in operation, maintenance and record keeping and assistance in commissioning the scheme.

Societies are free to obtain debt financing from a PCI or any other lending institution acceptable to the AU. The RERED Project aims to support about 100 village hydro schemes, serving about 5,000 households. Village hydro schemes will also contribute towards the target of 1,500 rural small and medium enterprises and public institutions accessing electricity through off-grid systems.
   
Grant Schemes Available
In addition to a project preparation grant of up to US$8,000 paid on the achievement of defined milestones, the Developer receives an incentive payment of up to US$ 1,000 for demonstrated success in achieving agreed economic benefit targets.

The ECS receives a co-financing grant of US$600 per KW of installed capacity of the plant, after successful commissioning of the scheme and meeting the RERED Project technical specifications. The AU maintains a panel of Chartered Engineers for such installation verification.

For details of the grants available see RERED Operating Guidelines (PDF)
     
For further information Village Hydros download - Village Hydro – Key Facts (PDF)
If you do not have Acrobat Reader, download here.

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