Over the past few years, there has been a growing awareness and an unprecedented global consensus that poverty poses the greatest threat to humanity, and to peace and stability. The 1995 World Summit offered a resounding expression of this with the identification of poverty eradication as a political, economic, social and moral imperative for Social Development. However, in spite of increased awareness and array of poverty alleviation initiatives, it is a sad realization that there is very little to show in terms of real impact on the plight of the poor, which is the epicenter of intervention. Although some of these initiatives managed to stimulate partial growth in some sectors of the economy, the unanticipated dysfunctional impacts were so marked and the overall poverty situation has continued to deteriorate.

This paper describes some of the successful best practices in South Asian region.

RURAL ELECTRIFICATION BOARD/PALLI BIDYUT SAMITIES (REB/PBSS), BANGLADESH

Rural Electrification Board (REB), a semi-autonomous government agency, was established in 1977 and is responsible for the distribution of electricity to the rural areas through the rural electric societies (electric distribution cooperatives called Palli Bidyut Samities – PBSs that function on a “no-profit and no-loss” basis). The individual members of the cooperative are the owners of the system and have input on how the PBS is managed through the election of the PBS Board of Directors. The service territories include all the rural areas, including some district headquarters and municipal areas.

The Program is now in its 5th and final phase of the original Master Plan that was developed in the late 1970’s. Total investments in excess of $1 billion have been made thus far with support being provided from 16 donor countries/agencies, as well as the Bangladesh Government. The Program is currently adding around 1,000 new connections and 25 miles of distribution lines every day. The following statistics indicate the current status of the RE Program as of February 2001.

*	No. of PBSs Organized 67
*	No. of Villages Electrified 32,368
*	kms of Energized Lines 126,000
*	No. of 33/11 KV Substations 230
*	No. of Metered Connections 3,245,000
*	Average System Loss16.29%
*	Bill Collection 95.56%
*	Average Accounts Receivable2.69 mos.
*	IPP Generation – Small Power 33 MW
*	Solar Home Installations (62 KW) 800
*	Total REB/PBSs Staff 8,000 Approx.

Keys Factors for the Program’s Success

The Bangladesh RE Program has accomplished a significant amount in terms of its development since 1978. However, despite the progress that has been made, it is clearly recognized that with only about 20% of the people having access to electricity, there is much still to be done. The following are the summary of some of the keys that continue to contribute to the Program’s success.

*	Engineering and construction standards are used for the development of the system.
*	There are approved specifications for equipment and materials used in the Program.
*	A “system” has been established for developing and monitoring the PBSs, which provide for necessary “checks and balances” to ensure proper performance.
*	The Cooperative model has promoted local involvement of the rural people who are the beneficiaries of the Program. This is done through member ownership in the PBS and participation in the election of the PBS Board of Directors.
*	The decisions taken at REB and the PBSs are in accordance with approved Policies and Procedures that have been established for all activities (i.e., engineering, accounting, PBS management, etc.) within the Program.
*	The system is built on a priority basis and the lines that do not fulfill the revenue requirements are not included for construction.
*	The PBSs are responsible for the day-to-day operations, but REB monitors their activities (i.e., management, system operations, commercial practices, etc.) to ensure that accepted levels of performance are maintained.
*	In order to prevent unnecessary staffing at the PBSs and additional operational costs, there are established rates of growth that must be met by a PBS before any additional staff can be added to assist with a particular function.
*	“System loss” is one of the primary indicators of the PBS performance. A careful watch is kept on system loss and is maintained at reasonable levels.
*	The consistency of attaining 95% collection rates.
*	Since the Program’s inception, there has always been a very strong emphasis on the training of all personnel involved with the Program. The REB Training Directorate continues to offer programs to all levels of personnel.
*	The RE Program has had the good fortune to be nonpolitical in nature. The effort to electrify the rural areas has been supported by all parties. Provisions within the PBS Bye-Laws keep the local political parties from becoming overly involved.

To date the Bangladesh RE Program has achieved a significant amount, but still much needs to be done.

GRAMEEN SHAKTI (GS), BANGLADESH

Grameen Shakti, a renewable energy company affiliated to Grameen Bank, was established in 1996. It is a not-for-profit company limited by guarantee and registered with the NGO Affairs Bureau

Objectives

*	To popularize and deliver renewable energy to the rural households.
*	To market solar, biogas and wind energy on commercial basis, focusing on rural areas, particularly the clientele of Grameen Bank.
*	To provide services that alleviate poverty and protect environment through applied research and development of renewable energy based technologies.
*	To undertake a project to progressively manufacture and market efficient and affordable household based photovoltaic systems.
*	To implement projects to generate electricity from wind in the coastal belts and offshore islands; operate mini and micro hydro-plants in the hilly areas.
*	To develop and implement special credit, savings and investment programs for generation, storage, and utilization of renewable energy for benefit of the rural people
*	To test the new and appropriate technologies to provide more cost effective energy services at affordable price to the non-electrified areas
*	To provide capital, technology and management services to energy enterprises, including individuals, communities, businesses, non-government organizations (NGOs), private voluntary organizations (PVOs) which promote, produce and finance enterprises based on renewable energy sources

Programs

*	Solar Program: marketing solar home systems through a network of branch offices with a soft loan program
*	Wind Program: distributing electricity through microenterprises in cyclone shelters in coastal areas of Bangladesh
*	Bio-gas Program: promoting bio digester to produce cooking fuel and fertilizer
*	Bio-mass Gasification Program: producing electricity from bio-mass and marketing the power in rural market
*	Training Program: creating employment for rural people and a base of necessary skills
*	Research and Development Program: exploring appropriate technologies, marketing and financing mechanisms, local manufacture of components
*	RICT Program: Introducing Rural Information & Communication Technology
*	Solar Powered Computer Education Program: providing computer education at remote places

Solar Program

Financing Policy
Option I
* 25 % down payment
* 75 % in 24 installments. It has 8 % service charge
Option II
* 15 % down payment
* 85 % in 36 installments. It has 12 % service charge
Option III
* 15 % down payment
* 85 % in 36 post dated cheques. It has 10 % service charge
Option IV
* 4 % discount on cash purchase

Networking and After Sales Service

43 branch units, located in difficult-to-access areas, consisting of one engineer and one technician based at each of the branch units that not only markets the program but also provides full on-site service and maintenance of all systems. The units take care of the following activities:

1. Engineers visit the customers each month to collect the installments. During the visit he checks the systems and takes corrective measures if necessary.
2. Each system has a “Maintenance Card” to record problems and actions taken. Technicians regularly attend the maintenance call.
3. Customers are given orientation training on minor maintenance issues.
4. Engineers and technicians train the local technicians who are expected to gradually take over the maintenance of PV systems

Status of Solar Program

* Grameen Shakti (GS) has marketed and installed 5206 Solar PV systems by July, 2001 with a total capacity of 259.4 kWp. On an average 50 Wp per system.
* Typically a solar PV system of 34 kWp costs Taka 17000 ($309).
* GS is installing on an average 300 solar systems per month.
* GS has trained 300 local technicians (young men and women) on installation, operation, and maintenance of PV systems. These trained technicians are expected to take over after sales service.
* GS has trained 2100 customers on minor maintenance of their systems. Gradually all customers will be brought under training program.

Status of Wind Program

GS has installed 6 wind turbines in coastal areas. Four of them are hybrid systems with diesel backup. One system is of 10 kW and the rest 1.5 kW. The power is being supplied to cyclone shelters of Grameen Bank and some customers.

Solar Powered Computer Education Program

GS has started four computer education centers. Each center is equipped with 1.125 or 1.5 kWp solar systems consisting of 15 or 20 panels of 75 Wp each. The average cost of total system including battery, charge controller and inverter is around Taka 7.5 Lac ($ 13600).

Future Plan

* GS has planned to install 10841 solar home systems within next 5 years
* 18 small battery-charging stations, powered by solar PV, will be installed within next 2 years
* 16 computer-training centers, powered by solar PV, will be installed within next 2 years
* 20 multi service centers, powered by solar PV, will be installed within next 2 years

RURAL ELECTRIC COOPERATIVES IN INDIA

Background

In India, steps for formation of Rural Electric Cooperatives for distribution of Power in rural areas, for the first time, were taken only in the later half of the Sixties when the Government of India sponsored an investigation by an expert team from the National Rural Electric Cooperatives Association (NRECA), USA for identifying a few areas with adequate potential for establishment of Rural Electric Cooperatives. As a result, 5 areas were identified, one each in the States of Andhra Pradesh (Sircilla), Gujarat (Kodinar), Karnataka (Hukeri), Maharashtra (Rahuri & Shrirampur) and Uttar Pradesh (Lucknow) and five pilot rural electric cooperatives were established during 1969. Since, by coincidence, Rural Electrification Corporation (REC) had also come to be established by that time, it, in consonance with the objectives set out in its charter and policy directives of the Government, took the responsibility of funding and promoting these pilot societies. Inclusive of these five pilot societies, REC has so far sanctioned 41 RE Cooperatives in
the country spread over 12 States. As on date 33 are in operation as 8 societies (3 in Rajasthan and one each in the States of Bihar, Gujarat, Jammu & Kashmir, Uttar Pradesh and Orissa) have since been taken over by the respective State Electricity Boards (SEBs). 33 RE Cooperatives Societies presently in operation are located in the States of Madhya Pradesh (17), Andhra Pradesh (9), Tamil Nadu (3), Maharashtra (1), Karnataka (1) and West Bengal (2).

Objectives of Rural Electric Cooperatives

The broad objectives of the rural electric cooperatives are to:-

1. Extend the electrical network in their areas quickly and economically;
2. Provide proper service to the consumers taking into account local conditions;
3. Support the wider program of development of the area for increasing agricultural production and stimulating the growth of rural industries, and
4. To ensure local participation in the management of rural distribution of electricity.

Loan Sanction / Disbursement

Up to 31.3.2000 REC has sanctioned a total financial assistance of Rs.125.91 crore as project loan to Cooperatives and Rs. 15.88 crore as loan to State Govts. (SDR Loan) for participation in the share capital of respective Cooperatives. Against the amount sanctioned as above, Rs.118.82 crore and Rs.15.23 crore respectively have been disbursed up to March 2000.

Existing Experience

Only two of the rural electric cooperatives, viz., “The Cooperative Electric Supply Society Ltd., Sircilla (Andhra Pradesh) and Singur Haripal Rural Electric Co-operative Society Ltd. (West Bengal) are well run and have positive margins; revenues exceed expenses including debt servicing. Both are registered under Co-operative Societies Acts of their respective States. Sircilla also holds an electricity supply license from Andhra Pradesh Electricity Regulatory Commission (APREC). However, other rural electric cooperatives are working under severe financial, institutional and organizational constraints and appear to be struggling for survival. Reasons for this state of affairs vary from society to society. It is observed that these arise primarily out of certain internal and environmental drawbacks that these societies are presently saddled with. These can be broadly classified as:

* Lack of freedom to fix tariff on commercial basis for different types of consumers in their area of operation.
* Unfavorable load mix that is often forced on these societies on account of SEBs proximity and influence with the State Governments.
* The societies being creatures of the Cooperative Societies Act, their management is highly susceptible to fluctuations in fortunes of political parties operating in the area affecting thereby objectivity and professionalism in their own decision-making.
* Regulatory powers given to Govts. under the Act for checking irresponsibility and delinquency in functioning of these bodies are at times misused on account of State Govts. own political priorities and compulsions.
* Subjective and politically colored functioning of their managements permeates downwards resulting in inefficiency and corruption creeping in at the operational levels

As a result what one often sees is narrow political compulsions giving rise to subjectivity and irresponsibility within these organizations, very often matched only by similar subjectivity and irresponsibility by authorities overseeing and regulating functioning of these bodies.

SOLAR HOME SYSTEMS PROGRAM UNDER ENERGY SERVICES DELIVERY (ESD) PROJECT, SRI LANKA

The Energy Services Delivery (ESD) Project, launched in March, 1977, has three components, viz., i) Credit Program, ii) Pilot wind farm, and iii) Capacity building to support the Ceylon Electricity Board’s Pre-Electrification Unit and its Demand Side Management Unit Credit Program. ESD project is funded by IDA credit of US $ 24.2 million and GEF grant US $ 5.9 million amounting to a total of US $ 30.1 million.

The Administrative Unit is set up with DFCC Bank and funds are disbursed by following ‘Participating Credit Institutions’ (PCIs)

· DFCC Bank
· National Development Bank
· Hatton National Bank
· Sampath Bank
· Commercial Bank
· Sarvodaya Economic Enterprises Development Services
(SEEDS)

SHSs – features

i. Typically 30 Wp, 45 Wp, 50 Wp
ii. 30th June 2000 – 968 SHS cumulative
iii. 30th June 2001 – 4,236 SHS cumulative
iv. To date around 6,400 cumulative with an additional 1000 being processed by authorities
v. Pipeline for December 2002 – Additional 10,000 SHSs
vi. GEF Grant – Co-financing of average $ 100 per SHS
vii. Financing is mainly through SEEDS on commercial rates.
viii. 97% recovery rate.

Four dealers in the industry who provide sales and maintenance services are given below:

· Shell Renewables Lanka Ltd.
· Selco Solar Power Lanka Ltd.
· Access Int. (Pvt.) Ltd.
· Alpha Thermal Systems Ltd.

Beneficiaries Viewpoints:

“Night Shift is Easier with Lights…..”

Mr. S.P. Wimalasena (Bakery Owner – Indigolla Polpithigama, Kurunegala District)
· Supplier: Alpha Thermal
· Six bulbs, TV (B/W), radio
· Financed by: Micro finance institution (MFI) credit scheme
· Cost: Rs 36000
· Down payment: Rs. 9000
· Monthly installment: Rs. 545 for six years

“We are delighted……”

Mrs. A.M. Muthumenika (Widow –Dekanduwala Polpithigama, Kurunegala District)
· Supplier: Alpha Thermal
· Six bulbs, TV (B/W), radio
· Financed by: Micro finance institution (MFI) credit scheme
· Cost: Rs 46000
· Down payment: Rs. 8300
· Monthly installment: Rs. 775 for five years

“I was elated…”

Mr. D.L.I. Liyange (Businessman –Dambaara, Madahapola, Kurunegala District)
· Supplier: Shell Renewables
· Four bulbs, TV (B/W), radio
· Financed by: Micro finance institution (MFI) credit scheme
· Cost: Rs 36000
He took one more SHS for his shop. Now he opens his shop from 7.30 a.m. to 10.30 p.m. Earlier he used to close his shop by 6.30 p.m.

RURAL ENERGY DEVELOPMENT PROGRAM (REDP) IN NEPAL

Established with the joint initiative of His Majesty’s Government of Nepal (HMG/N) and the United Nations Development Program (UNDP) in 1996 REDP is based on a holistic energy sector development policy and encompasses:
* Energy development
* Social capital building
* Environment management
* Income generation

Major Institutions

1. At the central level

* Rural Energy Development Board (REDB)
* Management Committee (MC)
These two have created a consistent mechanism for coordinating activities of REDP and government line agencies

2. Networking

* Micro Hydro Promoters’ Group (MHPG)
* Rural Energy Consultative Forum (RECF)
These two address the problem of repetition and duplication of works prevalent in the energy sector.

3. At the district level

* District Energy Network (DENET)

A forum of DDC Chairpersons of REDP districts for exchanging ideas and experiences among the districts as well as with other districts interested in rural energy development

* District Development Committee: Rural Energy Development Program (DDC:REDP)

Act as the authoritative district office on energy

* District Rural Energy Management Committee (DREMC)

Discuss and seek approval if needed for the regular activities of DDC: REDPs. The committee comprises of the DDC Chairman, the Local Development Officer (LDO) and the District Energy Advisor (DEA)

* District Energy Committee (DEC)

The DEC is represented by all energy related institutions working in the district. It serves as the planning committee for preparing the district energy plans and programs. Another important task of DEC is to coordinate all energy related activities to ensure optimal utilization of available resources and avoid duplication in the district

* Support Organizations (SOs)
Developed as local institutions specialized in the implementation of community mobilization in the communities. Each and every SO personnel is trained on different aspects of the REDP community mobilization package

4. At the Grassroots Level

* Community Organizations (COs)

A platform to launch, collectively, the development activities that directly concern the rural community The following 15 Program Districts (out of 75) have come under REDP by 2000: Kavre, Tanahun, Dadeldhura, Baglung, Achham Parvat, Myagdi, Baitadi, Dolakha, Sindhupalchowk, Tehrathum, Okhaldhunga, Dailekh, Bajura and Pyuthan

A Typical Program District

Baglung village under Baglung Program District
* Micro Hydro : 4 nos.
* Power Output : 83 kW
* Beneficiary Households : 911 nos.
* Solar : 100 nos.
* Bio gas : 105 nos.
* ICS (Improved cook stove) : 872 nos.
* Male COs (community organizations) : 167 nos.
* Female COs : 178 nos.
* Plantation : 370816 nos.
* Male Savings : 952775 Rs.
* Female Savings : 948817 Rs.
* Male Investment : 2769697 Rs.
* Female Investment : 804667 Rs

Impact of Rural Energy Development Program in Nepal

REDP has emerged as one of the outstanding programs in the rural energy sector. The program has demonstrated that rural energy is appropriate developmental input for the enhancement of the rural economy of Nepal. Impacts of REDP on economic, social and environmental sectors of the communities are vividly noticeable at local level in the areas of enhancement of livelihood and preservation of natural resources. REDP program has received the following international recognition:
* REDP has been recognized as “Best Practice” both nationally and internationally in 2000.
* REDP was featured as “ Projects around the World” at Expo 2000, in Hanover, Germany. Over 1000 projects around the world had participated in the competition
* REDP received the second prize under the Public Investment category of the Energy Globe Award 2000 at Linz, Austria. The Energy Globe Award is presented for sustainable energy programs throughout the world. More than 900 projects and initiatives from 72 countries had participated for this prestigious award.
* REDP is registered as one of the “best practice” programs by Sub Regional Resource Facility (SURF) of the UNDP based at Islamabad, Pakistan.