Modern energy access to all in rural India: An integrated implementation strategy

Expanding energy access to the rural population of India presents a critical challenge for its government. The presence of 364 million people without access to electricity and 726 million who rely on biomass for cooking indicate both the failure of past policies and programs, and the need for a radical redesign of the current system. We propose an integrated implementation framework with recommendations for adopting business principles with innovative institutional, regulatory, financing and delivery mechanisms. The framework entails establishment of rural energy access authorities and energy access funds, both at the national and regional levels, to be empowered with enabling regulatory policies, capital resources and the support of multi-stakeholder partnership. These institutions are expected to design, lead, manage and monitor the rural energy interventions. At the other end, trained entrepreneurs would be expected to establish bioenergy-based micro-enterprises that will produce and distribute energy carriers to rural households at an affordable cost. The ESCOs will function as intermediaries between these enterprises and the international carbon market both in aggregating carbon credits and in trading them under CDM. If implemented, such a program could address the challenges of rural energy empowerment by creating access to modern energy carriers and climate change mitigation. (C) 2011 Elsevier Ltd. All rights reserved.

Achieving universal rural energy access in india: A low carbon pathway

India's energy challenges are three pronged: presence of majority energy poor lacking access to modern energy; need for expanding energy system to bridge this access gap as well as to meet the requirements of fast-growing economy; and the desire to partner with global economies in mitigating the threat of climate change. The presence of 364 million people without access to electricity and 726 million relying on biomass for cooking out of a total rural population of 809 million indicate the seriousness of challenge. In this paper, we discuss an innovative approach to address this challenge, which intends to take advantage of recent global developments and untapped capabilities possessed by India. Intention is to use climate change mitigation imperative as a stimulus and adopt a public-private-partnership-driven ‘business model' with innovative institutional, regulatory, financing, and delivery mechanisms. Some of the innovations are: creation of rural energy access authorities within the government system as leadership institutions; establishment of energy access funds to enable transitions from the regime of "investment/fuel subsidies" to "incentive-linked" delivery of energy services; integration of business principles to facilitate affordable and equitable energy sales and carbon trade; and treatment of entrepreneurs as implementation targets. This proposal targets 100% access to modern energy carriers by 2030 through a judicious mix of conventional and biomass energy systems with an investment of US$35 billion over 20 years. The estimated annual cost of universal energy access is about US$9 billion for a GHG mitigation potential of 213Tg CO2e at an abatement cost of US$41/tCO2e. It is a win-win situation for all stakeholders. Households benefit from modern energy carriers at affordable cost; entrepreneurs run profitable energy enterprises; carbon markets have access to CERs; the government has the satisfaction of securing energy access to rural people; and globally, there is a benefit of climate change mitigation.