Page 10 - Oasys South Asia Research Project - Towards Scaling Up of Electricity Access
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4  Towards Scaling up of Electricity Access

arrangement, the hirer pays a rental fee to the service provider for renting out an
appliance. Small amounts of electricity generation takes place through the SHS or
petroleum-fuel based small generators for self-use. In the case of solar PV-based
battery/lantern charging systems, the charging station generates solar electricity
and supplies stored energy.
55 Collective solutions, on the other hand, serve more than a single individual user
and provide electricity to the users generally by producing electricity locally or by
procuring electricity from other sources and distributing it amongst the consumers.
The service provider in this case undertakes the business activities related to
generation, procurement, distribution, and sale of electricity. In particular, the
supplier invests in generating capacities, makes contractual arrangements for
procuring electricity, invests in the distribution network, maintains the assets,
and performs all relevant sales related functions (billing, revenue collection, and
customer relationship management). The size of operation of such businesses can
vary but no collective system is feasible below a minimum threshold of customers
(say 20–30 households, although 50–400 households may be more common
in practice).

Fig. 1.1: Electricity supply options
As part of the research on off-grid electrification in South Asia, we have investigated
the experience of rural electrification through an extensive research and have identified
that electrification based on mini-grids can combine household electrification
objectives with productive use of electricity through local livelihood generation
activities. Accordingly, we have undertaken a systematic study and analysis of a number
of successful and not-so-successful examples of mini- and micro-grids from across
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