Abstract

Providing basic minimum energy services has become a real challenge for developing countries of the world. India encounters the problem of provisioning basic minimum electricity services to a section of her population. Renewable energy-based decentralised systems have emerged as a viable electrification option for many developing countries of the world, particularly for rural and remote areas of the country. This study explores the replication and scaling-up of potential of such mini-grids in the least electrified states of India by considering a set of evaluation criteria i.e. grid-extension option, renewable energy resource potential, electrification rate, organisational strength, presence or absence of technical support system, and ease of access to banking services. Overall rankings suggest that top 20% districts offer good business potential for private investors to venture into the mini-grid market. However, the concern lies with the districts placed at the bottom, which require specific government interventions through appropriate policy, regulatory and financial support.

Highlights

  • Electricity is one of the fundamental inputs for the development of any country, and it is one of the crucial parameters of socio-economic development of any nation

  • This study explores the replication and scaling-up of potential of such mini-grids in the least electrified states of India by considering a set of evaluation criteria i.e. grid-extension option, renewable energy resource potential, electrification rate, organisational strength, presence or absence of technical support system, and ease of access to banking services

  • The aim of the paper is to assess the feasibility of scaling-up of mini-grids in India based on a set of criteria such as grid-extension option, electrification rate, organisational strength, resource potential, ease of access to banking services, and presence of technical supporting system

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Summary

Introduction

Electricity is one of the fundamental inputs for the development of any country, and it is one of the crucial parameters of socio-economic development of any nation. Within South Asia, 306 million people only in India lack access to electricity [1]. Providing basic minimum energy services has become a real challenge for countries like India [2]. Renewable energy has emerged as an effective alternative route to provide electricity to all [1]. UN’s SE4ALL is a clear manifestation of the recent thrust on renewable energy as a viable alternative to the grid-based centralised electricity supply system, with its specific emphasis on renewable energy-based decentralised energy options. Mini-grids have emerged as cost effective, technologically suitable, and more sustainable option to provide electricity access to remote areas of a country [3]. Exploring the feasibility of mini-grid type of interventions is a valuable exercise to ascertain as to what extent these interventions could serve as a viable alternative to the prevailing centralised electricity supply system.

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