Business innovation and diffusion of off-grid solar technologies in India

Singh, Kartikeya

doi:10.1016/j.esd.2015.10.011

Cited by 44 publications

(43 citation statements)

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“…Off-grid electrification, where electricity for household or productive uses is generated without a connection to the grid, is acknowledged by the government and scholars [5,6] as playing an important and complementary role in achieving electrification targets. However, despite the benefits of off-grid systems over the grid in a number of settings [7], the government generally remains committed to the grid paradigm for most situations, ostensibly for political reasons [8]. Opportunities for the private sector, including Non-Government Organisations (NGOs), to provide off-grid solutions outside of Indian government programs, are worthy of consideration.…”

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Off-grid opportunities and threats in the wake of India’s electrification push

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Background: In pursuing the United Nations' Sustainable Development Goal of affordable, reliable, sustainable and modern energy access for all, India's electrification efforts are dominated by a central electricity grid, with 100% of villages now connected. Despite this, 305 million people still remain without electricity. Off-grid electrification may play an important role in energy access for these 'last mile' consumers. However, opportunities are directly influenced by government plans and policies, including the integration of grid and off-grid systems. This paper aims to provide a contemporary assessment of the policies of the government, and how they manifest in electrification systems in rural and remote India, revealing opportunities and threats for the sector. Method: The progress of village electrification is examined via policy announcements and the Indian government's dedicated websites on progress. The role and extent of off-grid systems are then examined in two contrasting Indian states: industrialised Maharashtra and less-developed Odisha. Publically-available information is supplemented with data obtained directly from known private sector operators and state agencies. The geographic and societal setting of off-grid locations is then examined to provide contextual commentary. Finally, interviews with key stakeholders (regulatory authorities, distribution companies, private firms, industry bodies and academia) were undertaken to validate findings. Results: There is evidence of some remote localities not included in the government's electrification programs. The grid's poor quality and reliability, along with affordability barriers, means that the government's grid connection efforts may not result in significant improvements in electricity use by some consumers. Data from Maharashtra and Odisha showed limited private sector off-grid systems, generally operating on the periphery of government programs. This is despite the fact that there seems to be an opportunity for the private sector to enter the market, given the grid's shortcomings. Conclusion: The shortcomings of India's centralised electrification paradigm could be overcome through more localised off-grid solutions that can access 'last mile' consumers. The government might consider achieving this by formally recognising the role of off-grid systems in India's electrification objectives. Further, the government could extend the reach of electrification by transferring responsibilities for household electricity access to local-level businesses and community organisations.

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Off-grid opportunities and threats in the wake of India’s electrification push

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“…The review also includes studies focusing on other countries or developing countries (Ahlborg & Sjöstedt, 2015;Bhattacharyya & Palit, 2016;Pedersen & Nygaard, 2018;Singh, 2016;Williams et al, 2015).…”

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Enhancing the role of the private sector in achieving transitional renewable energy targets in Indonesia

Maulidia¹

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The Indonesian Government have set several medium-term targets for renewable energy development that aim to support the transition of the Indonesian electricity sector to a lower carbon future while still maintaining sustainable growth. Achieving such targets requires clear policy and regulation, a strict mandate, improved coordination among institutions, and largescale investment. While these targets may appear to be unrealistic, in light of the Paris Agreement, Indonesia like many countries has a global obligation to reform its energy sector, transitioning away from a reliance on fossil fuels. Due to limited public finances, private sector investment has been identified as crucial for renewable energy development in Indonesia. My research aims to create a framework through which the effectiveness of Indonesian energy policy options that seek to enhance private sector investment in renewable energy development can be assessed. The framework is based on the dimensions of the energy trilemma: energy equity, energy security, and environmental sustainability.Indonesia is blessed with abundant fossil fuel and renewable energy resources, however around 10% of its population remains without access to electricity. Historically, there has been a dependence on fossil fuels, based on a belief that the country is rich in oil. However, in fact Indonesia has become a net importer of oil since 2004 and over the years, state revenue from oil and gas exports has continued to decline. Indonesian energy policy has traditionally subsidised the production and consumption of fossil fuels. Despite this, Indonesia's energy policy has continued to support the production of fossil fuels and subsidised their domestic consumption. This precedent has seen Indonesia lag behind other countries in the search for more reliable and sustainable energy options. At the same time geographical challenges of Indonesia, extending across thousands of islands, further complicates the challenges of sustainable energy policy. This thesis takes an institutionalists' approach to investigate the energy transition in Indonesia, emphasising the importance of cooperation among institutions, different levels of government, the private sector, and civil society. I take a private sector perspective (i.e. renewable energy developers and investors) to investigate the barriers and enablers of renewable energy investment in Indonesia. The analysis presented recognises the need for the involvement of multi actors within

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“…This is despite the fact that MNRE, MEDA and OREDA all commented that they do not have a comprehensive understanding of the locations and types of off-grid systems provided by the private sector. Singh (2016) further contributed by determining that the extent of the (present or planned) grid did not inhibit the market for offgrid solar technologies. The unreliability of grid electricity may be a key factor, with the perceived reliability of off-grid solutions creating market opportunities, even when the grid is present.…”

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confidence: 99%

“…India provides a dynamic setting for the thesis, not just because of the sheer size of the market, but also because of electricity's importance as a political imperative and the important role of the private sector. Electrification of households and businesses has been a leading development and political priority in India for decades (Singh et al, 2016). The main paradigm in India to reach areas that have previously been unelectrified is via expansion of the government's centralised system, incorporating large-scale electricity generation and transmission via an electricity grid (Palit & Bandyopadhyay, 2017).…”

Section: Motivation and Backgroundmentioning

confidence: 99%

“…While the role of private sector electrification is largely supplementary, it does play an important role in producing innovative, community led solutions (Singh 2016). Marquardt et al (2016) elucidates that while donors and NGOs (and the private sector more broadly) cannot force energy transitions, they can be a driving force for testing alternatives in energy supply.…”

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Private sector electrification in Base of the Pyramid marketplaces in India: opportunities for energy and business to create Shared Value

Heynen¹

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The aim of the PhD thesis is to evaluate the value propositions, motivations and opportunities of private sector electrification in Base of the Pyramid (BoP) marketplaces in India. The lack of access to modern forms of energy, known as energy poverty, can severely limit economic development. Globally, 1.2 billion people lack access to electricity, with 240 million of those residing in India. To highlight this issue, universal energy access has been explicitly included in the UN's Sustainable Development Goals. Many millions more experience unreliable electricity supply with lengthy outages each day, even though they may be officially considered to have electricity access.The private sector has had an increasing role in both global development and in electricity distribution. In response to market opportunities and driven by a strong sense of social propositions included a cultivation of the dynamic effects of energy, consistent with interactive business models and strategic corporate approaches. These firms exhibited stronger concerns about future grid connectivity, and sought to embed their off-grid technologies as a risk mitigation strategy.Critical insights that emerge from this work include the following: Creation of productive ecosystems around electricity access is important to produce dynamic effects that can translate to Shared Value, sustaining firm competitiveness and alleviating poverty. Electrification of the BoP is a high risk and highly uncertain market proposition that requires a strong social mission from firms to operate and attract investment. Despite the espousal of BoP opportunities, the majority of India's large corporations do not engage in this market, and very few show evidence of a strategic approach.

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Business innovation and diffusion of off-grid solar technologies in India

Cited by 44 publications

References 11 publications

Off-grid opportunities and threats in the wake of India’s electrification push

Off-grid opportunities and threats in the wake of India’s electrification push

Enhancing the role of the private sector in achieving transitional renewable energy targets in Indonesia

Private sector electrification in Base of the Pyramid marketplaces in India: opportunities for energy and business to create Shared Value

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