Externally Aided Projects (World Bank Sponsored)

UP NEDA is now planning to provide electricity through renewable energy in various electrified or non electrified villages of Uttar Pradesh, through World Bank aided project 'Program to Establish Pilots for Access through Renewable Energy' (PrEPARE). This project will be implemented in those electrified villages, where electricity is either not available at all during peak hour or not available in sufficient quantity, due to which villagers are required either to use kerosene or use Diesel generator to get electricity. Due to availability of electricity, especially during peak hours, operation of diesel generator will not be required, resulting in reduction of environmental pollution. The project will be implemented in public private partnership (PPP) mode through private developers. Selection of private developers will be based on VGF. Selection of technology for electricity generation from renewable energy will be done by private developers. The cluster of village model will be adopted to attract private developers so as they can increase the capacity of mini grid power plants for providing electricity to maximum consumers (Domestic as well as commercial).

To implement the project necessary subsidy will be provided by World Bank through Capital subsidy of Ministry of New & Renewable Energy (MNRE), Government of India and Global Environment Facility (GEF) Fund. World Bank will provide financial subsidy US$ 10 Million (About Rs. 60 Crores) and similar amount by MNRE. In addition to it the World Bank will provide US$ 2.8 Million for technical support and capacity building. Thus about Rs. 120 Crores (60% cost of the project) will be provided as VGF by MNRE & GEF. State Government will not have any financial implication. After implementation of the Mini Grid plant, its operation and maintenance will be done by private developer.