Rapid
population growth, one of the world’s fastest growing economies, and an
expanding appetite for energy; all of these things are placing a huge
strain on India’s power generation capabilities. India’s population
grew by over 200 million between 2004 and 2012. Forecasts predict an 8%
growth in India’s 2015 GDP. This would place India ahead of China in
terms of economic growth rates and cement their status as an emerging
player on the global stage.
India's Position within the Global Energy Market
In
terms of energy consumption, only China and the USA use more
electricity than India each year. The nation holds an 8% market share
in global coal production ranking as the third largest in the world.
Coal-fired steam electric plants account for 60% of Indian installed generation capacity.
While India boasts 4.1% of the world’s oil refinery capacity, it
relies heavily on crude oil imports. In 2013, India imported about 1.3
billion barrels of oil representing 82% of its annual consumption.
Yet
India has an energy problem. While India is the third biggest consumer
of electricity in the world, distribution is sporadic across its
growing and geographically dispersed population. Residential
electricity consumers in the United States average almost 11,000 kWh per
year, the average Indian uses about 900 kWh per year. While Indian electricity rates
are in the very affordable neighborhood of 7 cents/kWh, the cost of
electricity takes a back seat to availability and reliability.
India’s Energy Gap
An estimated 400 million Indians, representing roughly 31% of the country’s population, lack access to electricity
in their homes. The residential sector only consumes about 22% of
India’s net generation compared to 37% in the United States. Many
Indians with access to electricity, particularly in rural areas,
experience chronic rolling blackouts, power outages, and curtailments. Urban
areas like the financial powerhouses of Mumbai and New Delhi are
helping to drive India’s burgeoning economy. These areas generally
enjoy the benefits of reliable electric service. Meanwhile, it seems as
if large swathes of India’s rural population have been left by the
wayside.
India’s energy problems, however, are not limited to
domestic issues. While India consumes less electricity each year than
China or the USA, the South Asian nation’s contribution to global carbon
emissions is still considerable. As India continues to grow and
develop, this contribution to the already high levels of global
pollution will only worsen. For India, the challenge lies in curbing
those carbon emissions without stifling economic growth or industrial
development.
India and Renewable Energy
India
is no stranger to renewable forms of energy. Since the 1980s, the
nation’s government has been experimenting with greener and more
sustainable methods of producing energy, with a reasonable degree of
success. As of 2015, grid-connected renewable energy sources account for 35,777 MW of India’s installed capacity. Of that total, approximately 66% was derived from wind power with biomass/cogeneration (12%), small hydropower (11%) and solar (10%) making up the balance.
While
renewable energy only accounts for 12% of India’s total installed
capacity, it represents the Indian government's commitment to exploring
new ways of producing energy for its ever-growing populace. India has
exceeded its projected targets for wind, hydro and solar power
production. However, it still has a long way to go if it is to meet the
ever-growing energy demands of its people.
One of the ways that
the Indian government could surpass targets during its next phase of
development is by focusing on distributed solar power. By encouraging
investment and innovation in photovoltaic solar generation and by
rolling out these systems on a wider scale across the country, the
Indian government could succeed in making distributed solar power a
major player in its energy generation portfolio.
India and Microgrids
Many
believe that solar microgrid technologies hold the key that will enable
India to satiate its expanding appetite for energy. These microgrids
are sustainable energy production centers, which are capable of
providing power to the rural districts where the need is greatest. Estimates are that microgrids
currently provide around 125,000 rural Indian households with power.
Most of these solar-powered microgrid networks are located in remote
communities where connecting to India’s central power grid is difficult,
expensive or impractical. This number may only be a drop in the ocean,
but it is at least a step in the right direction, not only for India
but also for rural areas throughout the world.
However, solar
microgrids do pose a conundrum; just how can this technology be
scaled-up to meet the needs of millions of Indians and reduce the
country’s energy shortfall? Companies like Simpa Networks
may have the answer. Simpa focuses on providing affordable distributed
solar generation systems to rural Indian communities. To overcome the
bad debt risk associated with traditional solar financing programs,
Simpa designed a financing plan reflective of how Indians are accustomed
to paying for energy.
Rural Indians are used to purchasing
purchase kerosene, batteries, and phone charging on a pay-as-you-go
basis. The payments are typically small and irregular as dictated by
available funds. Simpa replicates that purchasing behavior by remotely
unlocking the solar system for delivery of a specified amount of
kilowatt-hours. The system then locks and remains disabled until the
consumer makes additional payments. The system permanently unlocks upon
full recovery of the equipment cost.
In concept, this is identical to prepaid electric plans
in the United States that leverage smart meter technology and operate
under the same “coin-operated” approach. By transferring this
usage-based payment scheme to solar microgrids, rural Indians who would
not qualify for traditional financing can now have access to
electricity. Recent financing to the tune of $4 million from the
Overseas Private Investment Corporation (the U.S. Government’s
development finance institution) and GDF Suez will allow Simpa to bring
renewable electricity to approximately 200,000 Indians.
Proliferation
of solar microgrids is a feasible and sustainable way to bring to
electricity to rural areas of India. It is also as great way to provide
supplemental electricity to grid customers plagued by blackouts and
unreliable service. Access to electricity is essential for job creation
and wealth distribution in this country polarized by caste and communal
divisions. Whether India is able to meet and surpass its next round of
renewable energy goals will likely hinge on the continued deployment of
microgrid technologies. Support from the government as well as the
international community is critical to the success of bringing light to
people of India.
http://theenergycollective.com/charlie-hewitt/2235911/solar-microgrids-solution-rural-india