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Rural electrification and renewables decentralized energy for remote
communities
Published: Mar 1, 2008
Remote rural electrification projects in the poorer parts of the world used to be achieved with the use of diesel engine
generators. These are increasingly being replaced with decentralized, on-site stand alone and renewable energy-
based hybrid power systems. Paula  Llamas of the Alliance for Rural Electrification reports.

Roughly 1.3 billion people in rural areas, mainly within developing countries, live without electricity. Rural
electrification is therefore an issue that should be high on rural development agendas.

Renewable energy technologies (RETs) have an important role to play in rural areas in terms of the suitability and
cost competitiveness of the existing technological solutions, and from an environmental point of view. Renewables
are gaining widespread support, notably in the developing world. Climate change will affect everyone, but it is
expected to have a greater impact on those living in poverty in developing countries as a result of changes in rainfall
patterns, increased frequency and severity of floods, droughts, storms, heat waves, changes in water quality and
quantity, sea level rise and glacial melt.

On-grid and off-grid renewable applications are currently available to produce electricity, with off-grid being a flexible
and easy-to-use solution to increase electrification rates in rural areas where, due to their remoteness and low levels
of population, the extension of the grid is often economically unfeasible.

Off-grid rural electrification

Decentralized (off-grid) rural electrification is based on the installation of stand alone systems – photovoltaic (PV),
wind, small-scale hydropower, biomass – in rural households, or the setting up of electricity distribution mini-grids fed
either by renewables or mixed (renewables–LPG/diesel) systems.

The off-grid technology options based on renewable energies are varied in terms of scale and services provided, but
they all have a number of important common features, which make them more attractive than the conventional
options – systems based on diesel or the use of candles, oil, kerosene lamps and lanterns.

Primarily, RETs allow for the optimization of the use of indigenous natural resources. The power is generated on site,
thereby avoiding transmission losses and long distribution chains and satisfying energy demand directly. The
standardization and modularity of the technology (for example PV systems) provides a high degree of flexibility to
adapt to different locations and environments and at the same time allows the installed technology to be scaled up
when demand increases. Furthermore, the simple installation and maintenance combined with minimal running costs,
facilitate local training and income generation opportunities, which in turn guarantee the sustainability of the system.
Another important feature to take into account is the cost competitiveness of RETs compared with the conventional
options on a life cycle basis.

When it comes to rural communities, the costs of electrifying small villages through the extension of the grid are
frequently very high; the lack of critical mass, the distances to the grid and the type of terrain to be crossed are key
factors in these costs. In addition, residential electricity prices on rural electricity grids require high levels of
consumption in order to make electricity supply economically viable. To reach a high level of consumption requires
that consumers have sufficient disposable income to afford appliances that use significant amounts of power, such as
numerous light fittings, refrigerator, fridge freezer, TV, and so on. Where these levels of consumption are not found,
electricity supply through the grid is economically unviable.
Diesel fuel-based power systems are no longer an attractive option – their elevated operating costs and high
maintenance, the geographical difficulties of delivering the fuel to rural areas and the environmental and noise
pollution they cause all count against them. The low operation and maintenance costs, as well as the non-existent
fuel expenses and the increased reliability, together with a longer expected useful life of renewable energy
technologies, usually offset initial capital costs. The reality is that RETs are cost competitive for rural electrification,
even without internalizing environmental costs.

Many renewable energy technologies are used extensively within rural communities for different applications such as
household and public lighting, telephone and internet, refrigeration of medicines, irrigation and water purification,
drying and food preservation, crop processing and so on. Solar pumping and hybrid village electrification systems are
two examples.

Solar pumping technology for water supply

According to the 2006 Human Development Report of the United Nations Development Programme (UNDP), 1.2
billion people have no access to safe water and 2.6 billion live without access to sanitation. Millions of women and
young girls are forced to spend hours collecting and carrying water, restricting their opportunities and their choices.
The effects are felt most in rural areas where access to drinking water as well as to irrigation services for agricultural
purposes and livestock are a basic milestone that could improve quality of life and economic development.

Installation of PV water pump systems

Source: ISOFOTON
Click here to enlarge image

Direct solar pumping technology is one of the most suitable technologies that can be used to provide water supply in
rural areas, where a steady fuel supply is problematic and skilled maintenance personnel are scarce.

The modular nature of PV generators means that installations can be redesigned to meet an increase in demand; PV
water systems can also be easily moved with little dismantling and low reinstallation costs – see Figure 1.
This technology is also highly efficient – direct solar pumping technology covers applications ranging from 500–1500
m3/day – requires minimal maintenance and, of course, doesn’t use fossil fuels. Since 1994 around 24,000 solar
pumping systems have been installed worldwide providing drinking water to several thousand households and
community services (health clinics, schools and the like), as well as irrigation services. Gambia, Tunisia and Algeria
are some of the locations that have benefited from this technology. By the year 2010, the EU predicts that 150,000
photovoltaic pumps will have been installed.
 Figure 1. The flows of energy go from the PV generator through the
control unit to the pump. The flow of water goes from the well to the
water tank and then to the distribution systems. Source: ISOFOTON
Click here to enlarge image

Hybrid power systems for village electrification

A combination of different but complementary energy supply systems based on renewable energies or mixed (RET–
LPG/diesel), is known as a hybrid system – see Figure 2.

Figure 2. A typical hybrid system combines two or more energy sources,

from renewable energy technologies, such as photovoltaic panels, wind
or small hydro turbines, and from conventional technologies, usually
diesel or LPG generators (though biomass fed gensets are also a
feasible option). In addition, it includes power electronics and electricity
storage batteries.
Source: SMA
Click here to enlarge image

Hybrid systems capture the best features of each energy resource and can provide ‘grid-quality‘ electricity with a
power range between several kilowatts and several hundred kilowatts. This combined technology can be use for a
range of applications, from village electrification to professional energy solutions such as telecommunication stations
or emergency rooms at hospitals, and as a backup to the public grid in case of blackouts.
Hybrid systems are integrated in small electricity distribution systems (mini-grids) and can be incorporated into both
available and planned structures, as replacements for diesel mini-grid systems. Retrofitting hybrid power systems to
the existing diesel-based plants will significantly minimize delivery and transport problems and will drastically reduce
maintenance and emissions, representing a more advantageous solution for rural areas. (Even if such systems
include a genset as a backup, renewable energy will still supply, at least, between 60%–90% of the energy, with
gensets providing as little as 10% of the energy.)

Installation of PV water pump systems

Source: ISOFOTON
Click here to enlarge image

Technical, economic, financial, and socio-cultural considerations, including a feasibility study based on gathering field
data for each specific site and a life cycle cost analysis, must all be integrated in the decision process to ensure the
appropriate choice of renewable energy technologies for any given rural area. Hybrid systems have been
successfully installed in several remote locations. The access to reliable and affordable electricity has allowed the
provision of key services such as lighting, refrigeration, education, communication and health services, thereby
enhancing rural societies.

Renewable off-grid markets for rural electrification

Renewable energy sources are widely available throughout the developing world. For example, the East African
region boasts enormous potential for wind energy generation due to its favourable climatic conditions. Africa and
South East Asia have abundant unexploited potential for small hydropower systems which can supply rural energy
demands from small rivers. Africa also has tremendous solar energy capabilities – there is real commercial potential
for solar energy to provide rural electrification in remote areas of sub-Saharan Africa and North Africa.

In fact, rural access is already being targeted by countries with a large number of unelectrified communities, such us
China – the Township Electrification Programme was finished in 2005 and provided electricity to approximately 1.3
million rural people in 1000 townships with solar PV, small hydro, and a small amount of wind power. In 2005, Sri
Lanka electrified 900 off-grid households with small hydro and 20,000 with solar PV. And in India in 2006, the
Integrated Rural Energy Programme using renewable energy had electrified 2200 villages. India also has achieved
70 MW of small-scale biomass gasification systems for rural (off-grid) power generation. The Philippines now has
some 130 PV-powered drinking water systems and 120 telecommunications systems, with an average capacity of
about 1 kW each.
There is significant potential in the off-grid electricity market. Recent estimates for PV alone establish a cumulative
installed capacity of 161 MWp for residential off-grid systems, with a growth rate of 17% and 133 MWp for industrial
off-grid systems, with a growth rate of 15% (according to Navigant Consulting in 2006), which in turn sets the
potential market size at 30 times larger than today’s market!

However, only a limited number of studies and databases are available and reliable when it comes to rural
electrification. The lack of up-to-date socio-economic data prevents, among other things, the development of new
frameworks for rural electrification and competitive markets, and also limits public and private investment.

Additionally, there are still a number of challenges to face in order to reach a level playing field for rural electricity
supply using renewable energies; distortion of prices as the result of public subsides to conventional energies;
inappropriate taxation of imported energy equipment and the lack of appropriate financing instruments suited to the
scale and the technology involved, among others, are potential blocks to the development of these markets.

Some of the key drivers to encourage the private sector to make significant investments in rural decentralized energy
markets will be changes in legislation and regulatory frameworks to favour renewable energies, both at local and
national level. Alongside this, international financing institutions need to develop innovative financing options, such as
commercial loans or credit schemes, that will assist with initial investment costs and will also permit rural users to
afford their electricity.

Conclusions

Renewable energy technologies are ready to play a significant role in the electrification of rural areas, notably within
developing countries. PV-powered water systems and hybrid systems are just two examples of a range of
technologies that have been developed to increase modern electricity services in rural areas in an environmentally
and socio-economically sound manner.

Appropriate support frameworks and financial instruments are needed to remove market distortions and permit long-
term sustainability. Furthermore, the engagement of governments and the donor community, such as the World Bank,
development banks and development aid from the EU, is crucial to increase the involvement of the private sector.
This joining of forces will definitely increase the rates of rural electrification and development

Photovoltaics: Solar Electricity

Jump to: Photovoltaic Energy | Solar Incentives | Connecting to the Grid | Netmetering

Solar is a key component of our national strategy.  Our goal is to make solar photovoltaic-based
electricity cost-competitive nationwide by 2015 – and sooner in some states.  Secretary Samuel W. Bodman,
DOE 2008

Another pathway for Texas solar energy development is through installations of small- scale
renewable energy systems. Photovoltaics (PV) in particular represent a significant
opportunity for low-impact installations on existing structures already used for other
purposes, thereby circumventing the need for dedicated land to produce energy. If they
include storage devices, PV systems may eliminate the need to connect to the 
electric grid.
Year 2008 promises to be another record-breaking year for PV installations in the United
States. According to a March 2007 report by Solarbuzz, the installation of solar
photovoltaic devices in the United States increased by about 33 percent in 2006. The green
pricing policies of electricity service providers and the expansion of federal income tax
credits for commercial and residential solar energy projects has stimulated the U.S. solar
industry’s rapid growth, but the federal tax credits will expire at the end of 2008, and were
not extended by Congress in 2007.

In June 2007, the University of Texas at Austin produced a study, Opportunity on the

Horizon: Photovoltaics in Texas Solar, which suggests that by 2020 the solar industry
could create 123,000 new jobs in advanced technology, manufacturing and electrical
services while reducing the cost of solar power from the current unrebated average retail
price of $.21 per kilowatt hour to $0.10 per kilowatt-hour by 2010. Texans currently pay
close to 13 cents per kilowatt hour for electricity. The study suggests that by 2010, solar-
generated electricity will be highly competitive with electric power generated by other
methods.

To respond to the increasing demand for PV installations, additional certified installers have
become a critical need in the industry (see this article, Who will install a million solar
roofs?).

Distributed Generation (a PUC page with all the policies that are in place) 

List of Distributed Generation Contact Persons in the Utilities

PV Resources 
SECO's PV Projects
How Does PV Work? 
Hybrid Electric Systems
Flat-plate and Concentrator Systems
Solar America Board of Codes and Standards

How Does PV Work?

Photovoltaic (PV) systems convert light (photo) into electric voltage (voltaic). The basic
building block of a PV system is the solar cell. When sunlight strikes PV cells, electrons are
released and then gathered to create an electrical current. A thin silicon cell, four inches
across, can produce about one watt of direct current electrical power in full sunlight. The
direct current is converted into alternating current to operate household appliances. One PV
cell alone may not produce much power, but a number of photovoltaic cells are grouped
together into arrays, large panels or sheets that collectively form a solar collector system.

PV solar parts have no moving parts, do not require water, do not make noise or produce
any wastes or emissions. Solar electric systems can be connected to local utility grids in
urban areas to reduce costs or they can be off-grid, stand alone systems. Some
electricity providers offer consumers credit for excess power produced by the system. View
this short video from the U.S. Department of Energy to learn more about how solar panels
work.

Source: U. S. Department of Energy, Energy Efficiency and Renewable Energy

—Return to Top of Page—

Some of PV's Many Uses

PV technologies already touch our lives in diverse ways such as water pumps, highway
signs, communications equipment, satellites, wrist watches, calculators, medical equipment,
water purifiers, streetlights, lighting homes and running appliances. Integrated into
buildings and other urban settings, photovoltaics could satisfy a large portion of Texas’
future energy needs.

PV panels can be packaged in any size desired and can be installed on existing homes or
structures already used for other purposes, thereby circumventing the need for dedicated
land to produce energy or requiring the huge expense of extending miles and miles of
electric transmission lines. Smaller PV panels are used for a variety of purposes. A great
number of arrays can be grouped together on solar farms that stretch across many acres of
land. All this makes photovoltaics a particularly promising technology for Texas, Land of the
Sun, although PV systems work well in cold or hot weather. See How Solar Photovoltaic
Cells Work, a Futures Channel movie.

PV powered PV powered
electric fence. water pump.
 PV battery PV powered race
charging station. car.

PV powered PV power
irrigation aerates a fish
pumps. pond.

—Return to Top of Page—

Flat-plate and Concentrator Systems

A PV system's size and cost depends on the amount and efficiency of the electrical devices
that are planned for the home. PV systems can be classified into two general categories:
flat-plate systems or concentrator systems.

Flat-plate system
The most common array design uses flat-plate PV
modules or panels. These panels can either be fixed in
place or allowed to track the movement of the sun.
This photo shows the flat-plate system designed by
University of Texas at Austin students. The UT solar
decathlon team won the award for best design and
livability.
Flat stand-alone system
PV arrays for stand-alone systems are used in many
ways, such as this PV powered lighting for a parking
lot. The PV array must be solidly mounted and able
last for many years in all kinds of weather and the
should be designed to meet the wind load
requirements of the region.

Concentrator photovoltaics (CPV)

A CPV system concentrates sunlight by means of
mirrors and lenses. It uses less solar cell material and
relatively inexpensive materials such as plastic lenses
and metal housings to capture the solar energy
shining on a fairly large area. It then focuses that
energy onto a smaller area, where the solar cell is
located.

The following DOE web pages describe the various systems at work:

 Small Solar Electric Systems

 PV in Simple, "Stand-Alone" Systems
 PV Systems with Battery Storage 
 PV Systems with Backup Generator Power
 PV and Hybrid Power Systems
 PV Connected to the Utility Grid
 PV Systems and Net Metering
 PV for Utility Power Production
 Case Studies
 Million Solar Roofs

—Return to Top of Page—

Hybrid Electric Systems 

Hybrid systems can be designed to achieve desired attributes at the lowest possible cost.
Hybrid electric systems combine wind and PV systems to make the most of the area's
seasonal wind and solar resources, with wind relatively more available in winter months and
solar relatively more available in summer months. These systems are often stand-alone,
distributed energy generators.
Solar America Board of Codes and Standards (SolarABCs)

SolarABCs works within the U.S. Department of Energy's Solar America Initiative to to

address code development and outreach activities in areas of solar market penetration, such
as building electrical codes, product safety, interconnection procedures and standards that
facilitate the installation of high quality, safe photovoltaic systems.

SECO's PV Projects
SECO's Renewable Energy Demonstration Program promotes new technological
developments which use photovoltaic systems, as demonstrated by the following projects:

Renewable Energy at Work - Pflugerville

This Renewable Energy at Work project includes a demonstration of renewable energy for a
City of Pflugerville's Park and Recreation setting. The installation will provide electricity to a
new barn and light one half mile of hike and bike trail. The trail will have a solar/wind
system located on a picnic shelter sub-station. The barn will employ a PV system and wind
generation. The City of Pflugerville will provide active and static renewable energy
educational programs to the general public through the Pflugerville school district.

Renewable Energy at Work - Nolan Creek

This Renewable Energy at Work project provides the design and installation of solar lighting
technology at the Nolan Creek Hike and Bike trails parking area. The installation provides
solar lighting for the parking areas in and around the hike and bike trail. The installation
process was documented as a learning tool for the community outreach and educational
component.

Renewable Energy Technologies Demonstration

West Texas A & M University (WTAMU), Alternative Energy Institute is designing, procuring,
and installing solar PV energy systems, solar hot water systems, wind energy system,
geothermal energy system and data acquisition systems at at Texas Parks and Wildlife
Department's (TPWD) Sheldon Lake Environmental Center. TPWD is coordinating and
providing staff assistance to WTAMU on the design, site specifications, and installation
preparation of each of the renewable energy technologies. The site is designated as a
renewable energy technologies demonstration and educational site.

Texas Solar for Schools Program: Sun Power Lighting Schools, Teaching Students 
SECO has funded 11small-scale solar energy systems to school districts across the state.
Each school receives a nominal 1 kW system, a computer-based monitoring system, and
several additional hands-on learning tools to enhance the educational component of the
project as well as student and staff training. During the installation, students are
encouraged to participate as they are introduced to educational materials developed as part
of the statewide campaign to educate Texans about renewable energy resources. SECO
assists teachers by providing lesson plans that correspond to the renewable energy fact
sheets. The lesson plans provide additional ideas for hands-on projects that use readily
available materials and cover several areas of study. For additional information see Texas
Solar for Schools.

Small Scale Solar PV Systems in Public School Districts

SECO provided cost share funding for the installation of small scale solar PV systems in
public school districts (ISD) in the City of Austin - Austin Energy's electric utility area. The
project provides on-site operation and maintenance training for school staff; assists the
ISD's in identifying community outreach partners; develops procedures for ISDs to conduct
tours and visitor logs of the solar energy system; and assists the selected ISDs in the
development and implementation of a community outreach program that describes the
economics and environmental benefits of renewable energy and its improving technologies.

University of Texas/Houston Health Science Center 

The center has installed a 20kW photovoltaic (PV) installation atop their six-floor garage.
The system will generate enough electricity to power the garage.  SECO's partnership in this
project will enable a university student to collect and monitor PV data, as well as provide
training for UT/Houston personnel in PV systems.

Stand-Alone Photovoltaic (PV)

The stand-alone PV for Electric Cooperatives in Texas, which educates rural electric
cooperatives about the benefits of photovoltaic (PV) energy systems, has been highly
successful. The goals of the project include education and training, technical support, and
purchasing and installation support of PV for rural electric cooperatives in Texas. Since
1997, nine workshops for member electric cooperatives have been held, reaching more than
50% of the 75 cooperatives in Texas and providing Texas Electric Cooperative member
utilities with greater confidence to use the technology. To date, more than 9,000 watts of
PV have been installed, primarily for water pumping.

PV Resources 
Renewable Energy Education in Texas - Universities and Organizations  
This is a list of Texas universities and organizations that offer programs involving renewable
energy.

Austin Energy - Solar PV Rebate Program

Austin Community College (ACC) Solar Energy Installer Training

SECO and Austin Community College (ACC) Workforce Development Center offers the North
American Board of Certified Energy Practitioners (NABCEP) Entry Level Certificate Program.
For additional information, see the ACC Course Schedule and these videos of students
working on PV panel installations. 2008 Syllabus for Solar Electric Systems, Entry-
Level.

Austin Community College (ACC) Advanced Solar Photovoltaic Installer

An advanced course in the proper design and installation of NEC code-compliant solar
photovoltaic (PV) systems for use on residential and commercial buildings.  Course includes:
sizing of solar electric systems; specification of system components; and sizing of DC/AC
wiring. Prepares students for the North American Board of Certified Energy Practitioners
(NABCEP) Solar Photovoltaic (PV) System Installer certification exam after meeting all of the
experience requirements. This course is designed for those involved in the solar industry or
a related field and is intended for licensed electricians, contractors, or those with a strong
understanding of solar electric systems and electrical principles. See the Course
Syllabus and these videos of ACC students working on PV panel installations.
These fact sheets can be found on SECO's Infinite Power of Texas web site:

 Solar Electricity Works for Texas

 Introduction to Photovoltaic Systems
 Estimating PV System Size and Cost
 Calculator - PV Economics Calculator
 Kids fact sheet - Electricity from the Sun
 Kids fact sheet - Solar and Electric Cars

Farm Tests Solar-Powered Irrigation System August 2007

An experiment conducted by the Cape Girardeau County office of the USDA's Natural
Resource Conservation Service is capturing the power of sunlight to provide fuel for
irrigation. So far, the results have exceeded expectations, a local NRCS engineer said.

Connecting to the Grid Guide 2007

The Interstate Renewable Energy Council (IREC) has published a new edition of
its Connecting to the Grid guide. The fifth edition of this guide, published in July 2007,
addresses new and lingering interconnection issues that are relevant to all distributed
generation technologies, including renewables, fuel cells, microturbines, and reciprocating
engines. Because the interconnection of small distributed generators remains largely in the
domain of states, the guide targets state regulators, other government officials, and utility
representatives.

Distributed Generation Interconnection Manual

The Public Utility Commission of Texas (PUCT) prepared this manual to guide the inclusion
of distributed generation (DG) into the Texas electric system. It is intended for use by utility
engineers processing distributed generation interconnection applications, as well as those
considering the interconnection of distributed generation with a transmission and
distribution utility. The manual includes a review of safety and technical requirements of DG
installations; a copy of applicable rules, application procedures and forms; Texas utility
contacts and equipment pre-certification requirements.

Photovoltaics - Attaching to the Electric Grid

A Texas Solar Energy Society web page.

Making the Utility Connection for Larger Systems

This is a DOE-funded article prepared by the Southwest Technology Development Institute
and published in STWI's Code Corner.

Going off the Grid - Making Your Own Clean Electricity

This DOE web site discusses generating electricity using your own small renewable energy
system fits the circumstances and values of some home and small-business owners.
Although it takes time and money to research, buy, and maintain a system, many people
enjoy the independence they gain and the knowledge that their actions are helping the
environment. renewable energy system can be used to supply some or all of your electricity
needs. Some people, especially those in remote areas, use the electricity from their systems
in place of electricity supplied to them by power providers (i.e. electric utilities). These are
called stand-alone (off-grid) systems

Installing and Maintaining a Small Solar Electric System

This U.S. Department of Energy web site gives information about how proper installation
and maintenance of your small solar electric or photovoltaic (PV) system is essential for
maximizing its energy performance.

Off-Grid PV Fact Sheet

Future Students - What are Photovoltaic

Devices
Remote Area Power Supply
A Remote Area Power Supply (RAPS) is an autonomous electricity supply system that relies on one or
more energy sources usually in conjunction with a battery and power conditioning equipment. Although
RAPS systems can provide a reliable and cost effective source of power in remote regions, they are not
limited only to remote areas.

RAPS systems generally incorporate some of the following components:

Sources of Electricity

Photovoltaic (PV) modules

The basic component of a PV module is the solar cell, which converts sunlight directly into electricity. PV
modules consist of many solar cells connected together and encapsulated under glass. Usually several
modules are connected together to form an array, which has a DC (direct current) output.

Wind turbines

Although they vary greatly in size and design, nearly all wind turbines feature several blades that rotate
about a horizontal or vertical axis. The turbine is connected to a generator that converts the wind energy
directly into DC or AC (alternating current) electricity.

Microhydro generators

When a steady and reliably source of flowing water is available, microhydro generators can be used to
produce electricity. As with a wind turbine, the device is used to drive a generator.

Diesel, LPG and petrol generators (gensets)

These use an internal combustion engine to drive a generator, usually with an AC output. Gensets are
often used as a backup source of electricity for when the renewable sources are insufficient.
 Remote Area Power Supply Components

Other system components

Batteries

To store excess energy generated during periods of low demand and supply electricity during periods of
high demand, an energy storage mechanism is required. The most common form of energy storage in
RAPS systems is a bank of electrochemical batteries. Rechargeable lead-acid batteries are the most
common type of battery used.

Inverters

An inverter is required to convert the DC electricity from a battery, solar panel or other DC energy source
into the AC electricity suitable for supplying standard electrical appliances. Most inverters now available
are highly efficient, reliable and have a good quality output.
Regulator/controllers

A regulator/controller is used to interface the battery with the energy sources. Among other things, this
prevents overcharging of the battery, which can reduce its life. Additionally, most of them can also
disconnect the loads to prevent excessive discharge of the battery.

Trackers

PV modules may be mounted on a tracker, which follows the sun throughout the day and hence increases
their output. This can sometimes reduce the required size and hence cost of the array, but at the expense
of system reliability.

Maximum power point trackers

An MPPT electronically matches the output of a PV module to the electrical load, thus improving
efficiency. This function is often incorporated into the controller.

Metering and protection equipment

Requirements for basic protection equipment such as fusing is defined in Australian Standard AS4509,
while metering provides information about system performance.

System Sizing

Before determining the size of the RAPS required to satisfy a particular load, it often pays to minimise the
size of the load through demand side management. A household, for example, can significantly reduce its
electricity requirements by using gas for cooking and space heating, a solar hot water system for water
heating, and energy efficient appliances such as fluorescent lights.

RAPS systems incorporating renewable energy sources have been used for over 20 years, and in remote
areas they are often more reliable and cost effective than electricity grid extensions. In New South Wales,
for example, over 75% of the electricity network is required to supply power to less than 20% of users,
making maintenance of lines to remote customers prohibitively expensive. Hence many electricity
distributors now offer RAPS installation and maintenance services for their remote customers. RAPS
funding assistance schemes also operate in some states.

Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public Sector Enterprise under
Ministry of Power, was incorporated on July 25, 1969 under the Companies Act 1956. REC a listed
Public Sector Enterprise Government of India with a net worth of Rs. 11,080 Crore as on 31.03.10. 
Its main objective is to finance and promote rural electrification projects all over the country.  It
provides financial assistance to State Electricity Boards, State Government Departments and Rural
Electric Cooperatives for rural electrification projects as are sponsored by them. 
REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification
schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices), which
are located in most of the States. 

The Project Offices in the States coordinate the programmes of REC’s financing with the concerned
SEBs/State Power Utilities and facilitate in formulation of schemes, loan sanction and disbursement
and implementation of schemes by the concerned SEBs/State Power Utilities.

CATEGORY OF SCHEMES FINANCED BY REC

CATEGORY PURPOSE
Accelerated Electrification of one Lakh villages
Project Household Electrification P:RHhE
and one crore households
Aims at Electrification of unelectrified villages in
Project Village Electrification: P:VE (SG)#
a selected designated area
Aims at Electrification of unelectrified tribal
Project Dalit Basti: P:DB(SG)# /dalit bastis by release of Household, Street
Light and other connections
Aims at Electrification of unelectrified hamlets
Project Hamlet Electrification: P:HE(SG)# by release of Household, Street Light and other
connections
Aims at electrification of new villages including
Project Village Electrification: P:VE electrification of left out hamlets in a selected
designated area
To cover intensive load development for
Project Intensive Electrification: P:IE providing connections to rural consumers in
already electrified areas
To cover electrification of dalit bastis located in
Project Dalit Basti: P:DB the electrified areas by release of house hold
and street light connections
To cover electrification of hamlets located in the
Project Hamlet Electrification: P:HE electrified areas by release of house hold and
street light connections
Project Pumpsets: SPA:PE Aims at energisation of pumpsets
To strengthen and improve the transmission,
Project system Improvement: P:SI sub transmission and distribution system in the
designated area
To meet system inadequacy of entire system
Project Comprehensive System
from LT Distribution to Sub transmission and
Improvement: P:CSI
transmission level of a given geographical area
SI:Meters, Transformers, Conductors, For procurement and installation of meters,
capacitors etc. transformers and capacitors etc.
To provide finance to the Power Utilities and
State Governments to meet their working
capital requirement for different purposes, such
Short Term Loan as purchase of fuel for power plant, purchase of
power, purchase of material and minor
equipment, system and network maintenance
including transformer repairs, etc.
Debt Refinancing The Scheme aims to facilitate reduction of the
cost of borrowings of State Power
Utilities/highly rated private power utilities by
repaying their high cost term loans raised from
other Banks/Financial Institutions for eligible
 projects/schemes.
To provide Short term Loan/Medium term loan
Financing Equipment manufacturers to the manufacturers of Power/Electrical
material for power project.
Development of rural electric cooperative
RE Cooperatives
societies
Covers all types of schemes irrespective of
Generation
nature, size and source of generation.