Renewable energy sector in India now is a $42 billion market

India’s renewable energy sector has so far attracted investments of over $42 billion over these four years and green energy projects have created over 10 million man-days of employment per annum over the period. These figures are part of the list of 4-years achievements of the Modi government shared by the Ministry of New and Renewable Energy (MNRE).

Green Energy bulbs

New opportunities have emerged. Altogether new business space has been created. Indian companies have begun to explore foreign stock exchanges as a source of funds. India is progressively becoming a most-favored destination for investment in renewables. Foreign investors can enter into joint venture with an Indian partner for collaboration and setting up renewable energy-based power generation projects.

100 per cent foreign investment as equity qualifies for automatic approval and the government is also encouraging foreign Investors to set up renewable energy-based power generation projects on build-own-operate basis. India’s renewable power installed capacity has already reached over 70 Gigawatt (GW) and over 40 GW of renewable capacity is under construction .

Globally, India stands 4th in wind power, 5th in renewable power and 6th in solar power installed capacity. Solar energy capacity increased by over 8 times from 2.63 GW in 2014 to 22 GW. Wind energy capacity increased by 1.6 times from 21 GW in 2014 to 34 GW. The trajectories for bidding 115 GW renewable power projects up to March 2020 have been announced and the country is well on track to achieving 175 GW target of installed renewable energy capacity and trends suggest that the target will not only be achieved but exceeded.

Among the other key achievements are reduction in solar and wind power tariffs to historic lows through transparent tariff based competitive bidding, waiver on inter-state transmission charges, notifying Renewable Purchase Obligation (RPO) trajectory up to 2019 and notifying a new wind-solar hybrid policy. It is good to note that our country is well on track to achieving 175 GW target of installed renewable energy capacity and trends suggest that the target will not only be achieved but exceeded.

SANJITH S. SHETTY

Permanent link to this article: https://blog.sohamenergy.in/renewable-energy-sector-in-india-now-is-a-42-billion-market/

Rural India’s electricity consumers prefer decentralized renewable energy (DRE) solar mini-grids

Rural electricity consumers in India prefer locally-owned grids according to  ISEP researcher Arianna Tozzi who had recently visited Karnataka state to gauge consumer attitudes toward centralized grid extension vs. locally-owned and managed mini-grids. The research showed that all favored mini-grid option. As a result of this inadequate and unreliable service, decentralized renewable energy (DRE) solutions such as solar mini-grids and solar home systems are being deployed at scale in remote India.

A mini-grid in Bhamane

A mini-grid in Bhamane, Karnataka state (credit: ISEP Arianna Tozzi)

Managing electricity supply to rural areas is a real challenge. Often, collection rates are poor, and losses are high, especially with theft and leakage. The  situation  is  further  exacerbated  when  we  have  irrigation  pump set  loads,  which  are  mostly unmetered  and  obviously  politically  sensitive.  For  micro grid,  we  assume  a  focus  on  household  supply,  given  free  power  for  pump sets  is  not  viable  for  the  micro grid  operator.  addition  to  billing  and  collection,  physical  maintenance  of  the  lines  is  a  key need and challenge.

Weather and human intervention-based outages or failures are not uncommon, and a key issue is keeping spares handy. A single village-sized micro grid becomes a very costly proposition in terms of inventory, while a larger coverage area necessitates travel and transportation costs. The   number   of   consumers   per   village   turns   out to  be  less  of  a  determining  factor  compared  to  the two  factors  of  number  of  days  of  cloud  coverage  and  monthly  consumption.

In recent years, centralized grid infrastructure has been greatly extended in India. Government figures report that connectivity is now available in 99% of villages. Despite this progress, over 25 million rural households remain electrified while many more are served by limited and unreliable supply.

While conducting an impact assessment on rural mini-grids in Karnataka many challenges came into light. The assessment was part of a wider study observing sustainability conditions for DRE systems across many dimensions: technical, economic, institutional, and socio-environmental. The mini-grids in the villages of Viral and Bhamane a social enterprise, in partnership with a local trust. The installations provide 24×7 power supply to each house as well as public lighting. Four LED bulbs, two sockets and a meter have also been installed in each house and the systems are designed to provide spare capacity to run small livelihood-generating appliances. Where as installation costs have been covered via grant funding, recurring O&M costs are covered by energy tariffs collected from each house. Both sites use a community-ownership model, where a locally elected operator and Village Energy Committee work together to ensure technical and financial management of the plant on an ongoing basis.

After many years of successfully managing the solar grid with little external help required the communities were recently provided with a connection to the central grid. The government-supplied lines arrived but unfortunately, the lines from the central grid got damaged by severe monsoon rains, disrupting service after only a few months. However in interviews with local residents, it was clear how satisfaction and preference in both cases lay with locally managed mini-grids. They sited two key reasons for this preference of locally-owned and managed mini-grids :

  1. Firstly was the high reliability and quality of power provided by the mini-grids compared to the central grid, with respondents finding it hard to precisely identify the number of disruptions or days without power experienced over the past month with mini-grids. Conversely, one resident in had said this of the central grid: “Electricity is available for 10 minutes then it may go off for an hour and comes back again for some time. It goes on like this the whole day”. Unreliable electrical supply is not uncommon with the central grid in remote India, and service that varies on a minute-per-minute basis falls short not only in promoting economic growth but also in meeting basic energy needs for households and public spaces.
  2. Residents also preferred the benefits of a locally managed service as compared to one perceived as distant and unaccountable. In the case of Bhamane, where the central grid only worked for a few months, community members were very surprised to see that no one had visited the village for over six months to check on the status of the grid line. Local accountability for the electricity supply seemed to be an additional decisive factor determining user’s choices and preferences.

Overall, it seemed that the experience with solar mini-grids had set a positive baseline for reliability and accountability factors played a determining role in the low satisfaction registered towards the central grid. This finding is in line with that from other studies; where user satisfaction and preferences were found to be subjective and contingent to pre-existing expectations and past experiences with electricity services. Certainly, the focus on household (not just village), connectivity seems to be a more inclusive solution for universal electrification.

Additionally, a move to recognize the already existing DRE infrastructure implemented by various players in rural areas could be a meaningful step to avoid replicating efforts in places where a reliable and adequate service already exists.

SANJITH S. SHETTY

 

Permanent link to this article: https://blog.sohamenergy.in/rural-indias-electricity-consumers-prefer-decentralized-renewable-energy-dre-solar-mini-grids/

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