Rural Electrification in India: Status Report & Opportunities in Mini Grid & Renewable Segment

  • ID: 4434506
  • Report
  • Region: India
  • 225 Pages
  • SNP Infra Research Solutions Private Limited
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Rural electrification is often considered to be the backbone of therural economy. Rural energy needs include energy for a) Cooking b) Basic lighting c) Irrigation d) Communication e) Water heating f) Cottage industry and so on. Development of rural electrification intoday’s context, rural electrification has five major facets:

  • Setting up of Rural Electricity Infrastructure
  • Providing connectivity to households
  • Adequate supply of desired quality of power
  • Supply of electricity at affordable rates
  • Providing clean, environmentally benign and sustainable power in efficient way

Rural Electrification (RE) has been in the focus of policy makersfor the past several decades. However this policy priority has rarely translated into effective schemes on the ground. India has always had a rural economy and since independence successive governments have tried to improve the rural infrastructure including energy infrastructure. However, a lot is yet to be achieved to give areal impetus to rural economy.

The Electricity Act 2003 (EA 2003), National Electricity Policy 2005 (Power, National electricity policy), National Tariff Policy 2006 andRural Electrification Policy 2006 are some of the major policy and regulatory initiatives supporting rural electrification programmes.

Current government has announced 24X7 Power for All by 2019. Comprehensive state-specific action plans for 24x7 power to all homes is being prepared in partnership with respective states, encompassing generation, transmission and distribution. MNRE initiated rural electrification projects using renewable such as solar PV, biomass, small hydro power since early 1980s. Evolution of renewable energy technologies and products have now opened new frontiers for renewable energy based rural electrification using solar lighting products, DC and Ac mini-grids, smart micro grids, and eventually grid interactive micro and mini-grids which cancomplement the grid extension program which will surely attract private participation and Investment in Electrification of Rural India. Recently announced enhanced targets for renewable energy programmes by MNRE (175 GW by 2022) are in phase of bringing in new investments and give impetus for rural electrification through renewable energy.

Recently announced “Saubhagya Scheme” has a planned outlay of Rs 16000 Crore as contribution required towards electricity connections for all rural and urban households currently without any access to power. Besides, it is likely to benefit for the capital goods industry, especially players in the distribution segment, Renewable Segment, Solar & Other Renewable Developers being derived from boost in energy demand, apart from improving the quality of life for rural households.

For faster, reliable and effective rural electrification a unified model for implementation is necessary. An integrated policy framework would help in this regards. Government is in the process of optimizing regulatory framework to support Mini grids with variety of sizes based on solar, wind, small hydro or biomass power. These are promising candidates for sustainable business model for rural electrification port min-grid based rural electrification which can be sustainable in long term.

This report covers various aspects to overcome this stalemate and suggest alternative approaches on rural electrification in India. Various models of rural electrification have been comprehensively presented as per the provisions of the Act and based on the prevailing conditions in a particular area. Relevant Suggestion for success of business in Rural Electrification has also been incorporated, so that the emerging solutions are of practical relevance with wide applicability.

To summarize, the objectives of the study are as follows:

  • A detailed study of the existing rural supply in the country and targeted Electrification
  • Dovetailing the current rural electricity supply modes in the light of various policy and Rural electrification programmes in India
  • Review of financing, subsidy related issues and financing of various models
  • Analysis of institutional arrangement for sustaining the RE efforts
  • Framework of Rural Electrification
  • Case Studies of Rural Electrification and commercial analysis.
  • Opportunities for Private Developers in Decentralized Distributed Generation & Mini Grid
  • Database: A Comprehensive list of Major Upcoming

Opportunities in Rural Electrification in 12 Major States, housing a Direct Connect. This report is a must buy for players in Distribution Segment, Renewable Segment (including Solar, Wind, Biomass, Waste to Energy, Aero-Generators/Hybrid systems, EPC Developers, and Solar PV value chain contributors).

This dossier shall help in strategic decision making for all the key value chain players and stakeholders.

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1. Executive Summary

2. Rural Electrification in India

  • Introduction: Why Rural Electrification in India?
  • Definition of Electrified Village
  • Rural Electrification - In View of Electricity Act 2003
  • Government Strategy
  • Rural Electrification in India - In View of Five Year Plans
  • Rural Electricity Services in India
  • Trends of Rural Electrification in India

3. Key Inhibitors of Electrification in Rural India

  • Improvement of Low Quality Power
  • Economic Benefits to People
  • Improving Rural Electrification Project Execution

4. Status of Rural Electrification in India

  • Rural Electrification progress in India
  • Recent Developments
  • Opportunities: Villages to be Electrified

5. Rural Electrification Programmes in India

  • Kutir Jyoti Scheme
  • Pradhan Mantri Gramodaya Yojana (PMGY)
  • Minimum Needs Program (MNP)
  • Accelerated Rural Electrification Programme (AREP)
  • Accelerated Electrification of One lakh villages and One Crore households
  • Schemes of Rural Electrification by GOI
    • Rajeev Gandhi Grameen Vidyutikaran Yojana (RGGVY)
    • Deendayal Upadhyaya Gram Jyoti Yojana
  • Current Rural Electrification Scheme - Saubhagya scheme
  • Review of Rural Electrification (RE) Schemes

6. Existing Framework & Roles

  • Institutional Framework
  • Roles of Entities
    • State Electricity Regulatory Commission
    • State Government
    • State Nodal Agency
    • Distribution Licensee
    • Developer/Service Provider
    • Local Bodies (Zilla, Taluka and Village Level)/Self Help Groups/NGO
    • Others
  • Beneficiaries from Rural Electrification

7. Rural Electrification Models in India

  • Electrification Models
  • Implementation Process
  • Development and Implementation Arrangements
  • State Level Implementation

8. Decentralised Distributed Generation:

  • Opportunitizing a Bright Future
  • DDG Technologies
  • Distributed Generation and Supply (DG&S) Model
  • Financing of Projects
  • Project Implementation

9. Mini Grid: Opportunities for Renewable Energy

  • Introduction to Mini Grids
  • Need for Private Sector Participation
  • Developing Mini Grids as per Rural Electricity Needs
  • Economics of Mini Grids
  • Guideline for Success of Mini Grids
  • Mini Grid Driving Rural Transformation
  • Market Challenges
  • Micro and Mini Grids in India
  • Mini Grids: A Case Study
  • Designing a Solar PV Mini Grid System

10.  Financing, Government Support & Subsidies

  • Financing & Subsidies
  • Financial Viability of the Service Models
  • Financing Government Schemes

11.  Rural Electrification Challenges

  • High Capital Cost
  • Demand in Rural Areas
  • Irregular Tariff Collection
  • Red Tapeism
  • Social Challenges
  • Technological Challenge
  • Competitiveness
  • Overcoming Challenges

12.  Way Forward

  • Next Step towards Rural Electrification

13.  Database: Linking Major Opportunities in Electrification of Rural India

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