Frequently Asked Questions on Performance Based Grant Programme

1. There are some rural farms that are already connected to the grid and will welcome solar power plants as an alternative to get rid of generators--can they be part of the programme?

At a later stage, underserved communities may be considered in the performance-based grant programme. However, for now the performance-based grant programme will be focused on off grid communities.

2. For developers with mini grid projects close to Discos, can they get permissions to continue working there with the Discos? And how will tariffs be agreed?

  • Only mini grids in unserved areas are considered for now for the performance-based grant programme. In the future, mini grids in underserved areas may be considered for the performance-based grant programme. The tariff will be set by developers according to the NERC regulation for mini grids.

3. The Discos are not paying Gencos in the electricity sector as expected, how are they expected to pay developers?

At first, the programme will focus on mini grids in unserved areas, so mini grids will not have direct dealings with Discos and Gencos.

4. In developing countries, a big portion of the profit typically comes from subsidy for the investors. For this project, the grant is $350 per connection. What is the minimum capacity per connection?

  • The amount of subsidy does not depend on the capacity of the mini grid. It is set a $350 for the performance-based grant programme.

5.What if a community selects a mini grid operator and requests the operator to set up a mini grid in the place of a Disco in that community?

For now, the performance-based grant program focuses only on isolated mini grids. Under the mini grid regulations, if a community already served by a Disco wants to get electricity from a mini grid, the community should sign a tripartite agreement with the Disco, and the mini grid developer.

6. Would a developer be required to submit the model or output for the tariff approval/evaluation?

For the PBG site approval, the developer is only required to submits its generation and distribution design. The tariff approval process will be done in parallel.

7. What is the waiting time for the connections to be approved?

The approval is done once a month

8. Will NERC approve a tariff if the community agrees with the developer?

  • If 60% of the potential customers in the community agree to a tariff proposed by the developer, NERC will approve this tariff.

9. If developers go to a community and customers don’t pay, what can the developer do?

Prior to the deployment of the mini grids, developers are expected to carry out community engagements to communicate the terms of the service. This is the responsibility of the developer and not the REA..

10. How is REA going to monitor connections for 3 months to meet the target?

For places with coverage, the connections would be managed through data from smart meters. For places with poor network coverage, the metering data would be uploaded and sent to the REA where network can be found. Independent verification agents will also go to selected sites and physically confirm the data is accurate

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