The India Off-grid Electricity Market

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India as a rural electrification market has enormous potential. According to the 2011 Census of India, 81 million households or close to 400 million people do not have access to electricity as their ‘main source of lighting’. Of these, over 90% residing in rural areas form the biggest rural electrification market segment. In recent years, a strong state commitment has been created to provide electricity for all as demonstrated by national and sub-national policy programs, significant budget outlays and increasing discourse to employ decentralised energy generation technologies for last mile access.

This document by the Alliance for Rural Electrification (ARE) and the European Business and Technology Centre (EBTC)gives readers a brief overview of the potential of decentralised renewable energy generation in India stimulating private sector involvement in this sector. While the scope of this study is limited to micro-grids that can distribute locally produced electricity from solar, small wind and small hydro plants, core messages expressed may apply to renewable energy solutions of larger sizes too. It does not include off-grid solar based products such as solar appliances, solar water pumps and biomass based solutions.

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