Energetica India Magazine January-February 2021

38 energetica INDIA- Jan-Feb_2021 The decentralized network of electricity in off grid, mini-grid or franchise models has proven to be a successful second option for improving energy access in unserved or underserved areas. The government’s vision for a new India is to achieve broad-based and inclu- sive economic growth across regions, states, and sectors. Since there is an absolute relationship between econom- ic prosperity and availability of afford- able, reliable, and sustainable energy, there is an urgent need for India to look at strengthening its power infrastructure across the length and breadth of the country. Although India has achieved 100% household electrification, reliabil - ity, quality, and affordability continue to remain major challenges, as does 24x7 power supply. Without secure electricity access, developing basic facilities like education, health, clean drinking water, or even training and skill development in the rural hinterland will always remain an uphill battle. The Economic Survey 2018-19 high- lighted that India’s energy usage is much below the global average. The per capita energy consumption of In- dia stands at 0.6 tonnes of oil equiva- lent (toe) against the global per capita average of 1.8 toe. It added that India needs to increase its per capita energy consumption by at least 2.5 times if the country has to fulfil the economic aspi - rations of its citizens and increase its per capita income to $5000. Current state of electricity access in India and the challenges A 2015 World Bank study ‘Power for All: Electricity Access Challenge in India’ highlighted that despite access to elec- tricity, many rural households choose not to apply for these connections. There are multiple reasons why nearly one-fifth of India’s rural households, around 31 million of them, continue to depend on biomass for their energy use. Among them, other than the reliability and qual- ity of power, is the inability or unwilling- ness to pay for electricity. There are three approaches to resolve the power woes of customers. First, on-grid connectivity with distribution infrastructure; second, off-grid connec- tivity that includes mini-grids; and third, a hybrid option that integrates the grid with off-grid solutions. Much has already been talked about the poor health of the distribution utilities facing losses due to weak service delivery, power theft, and poor payment collection, thus dampen- ing their investment decisions in rural areas and setting in the vicious cycle of unreliable electricity. The decentralized network of electricity in off grid, mini-grid or franchise models has proven to be a successful second option for improving energy access in unserved or underserved areas. Key mini-grid led demand generation strategies The mini-grid sector has played a crit- ical role in providing access to reliable electricity in rural India. A mini-grid dis- tribution network has the potential to give rise to micro-enterprises, and (per community) generate access to at least 100-140 households, 50-60 shops as it extends 1-2 km from the plant. What’s required is to generate demand for mini-grids at scale, and increase electricity consumption among under- served rural communities for better social and economic development. En- ergy Service Companies (ESCOs) can design these to encourage potential customers to use the mini-grid generat- ed power. Thus, an electricity connec- tion is not just about generating revenue for the mini-grid operator, but also about offering freedom from the smoke that re- sults from biomass fuels (firewood, dry animal manure etc.) that affects health in the long run. Electricity access to a household and local businesses means socio-economic development of the family, of the village, of the district and the country. Jaideep Mukherji Chief Executive Officer, Smart Power India William Brent Chief Campaign Officer, Power for All Grid Innovation is Key to Fulfilling India’s USD 5 Trillion Economy Dream SOLAR POWER