11 September 2014: A review published by the Global Network on Energy for Sustainable Development (GNESD) characterizes the development of renewable energy-powered mini-grids in India as a “successful venture.” The report examines rural electrification based on renewable energy mini- and micro-grids, with specific references to successful, publicly-supported solar photovoltaic (PV) and biomass implementation programmes.

The publication, titled ‘Renewable Energy-based Rural Electrification: The Mini-grid Experience from India,’ notes that, in 2011, close to 77 million households in India were living without electricity. While connection to national grids remains the predominant form of electrification, decentralized options are attractive to significant populations in remote areas in India, currently out of the reach of the grid. In these areas, renewable energy is becoming an increasingly relevant option for electricity supply, supported by decreasing costs and improving reliability.

The study provides an assessment of Indian renewable energy-based mini-grids, examines challenges in their dissemination, and draws conclusions and lessons learned. Assessing experience with renewable energy mini-grids so far, the study covers the aspects of: policies and regulation; technical features and capacity; service delivery models; financing; tariffs; operation and management; and community participation and capacity building.

On challenges in deployment, the study mentions, inter alia: lack of a long-term vision for the sector; determination of tariffs through negotiation rather than regulation; lack of adequate investment; and weak institutional structures and organizational systems. The report concludes with recommendations, including: tailored design and structuring of service delivery models; basing technology choice on availability of knowledge and skills, alongside robustness; a cluster approach for implementation; and the government’s commitment to creating an enabling environment.

The study received partial funding from the International Renewable Energy Agency (IRENA), and was prepared by The Energy and Resources Institute (TERI).

GNESD is a global knowledge network of Member Centres and network partners, facilitated by the UN Environment Programme (UNEP), working to reach the Millennium Development Goals (MDGs) in the areas of energy, development and the environment. [UNEP DTU Press Release] [Publication: Renewable Energy-based Rural Electrification: The Mini-grid Experience from India] [GNESD Publication Webpage] [GNESD Website]