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.
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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. |
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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.
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