Improving energy supplies in rural areas in India by using Decentralised Renewable Energy (DRE) sources

Context

India has the world’s third-largest energy consuming economy. 80 per cent of the country’s energy demands are met by conventional energy sources such as oil, coal and biomass. Although the energy use in India has doubled since 2000, the average use of energy per person is less than half of the international average. To find affordable, reliable and high-quality energy sources remains a challenge in many rural areas. Through different initiatives, the Indian Government tries to tackle these challenges and ensure a reliable energy supply to every household in the country.

Furthermore, India has made an international commitment to contribute to the Sustainable Development Goals (SDGs) of the United Nations including the ambitious goal to provide 50 per cent of electricity from renewable sources by 2030 and to achieve net-zero by 2070. To meet these ambitious targets, it is crucial to implement the necessary policies and a regulatory framework in line with conducive market regulations.

Objective

The energy supply in Indian rural areas has been improved.

Approach

The project seeks to build on the results achieved in the first phase of the project by assisting the selected states in developing energy plans, spreading the use of successful instruments and a clear concept to improve the basic energy supply.

The key activities include:

• Designing long term energy plans and implementing them in the states of Goa, Punjab, Odisha
• Supporting 11 financial service providers to conclude at least 100,000 loan agreements with rural energy users. In addition, about 6,000 entrepreneurs in rural areas receive support to sell renewable energy products or services through decentralised renewable energy systems.
• Preparing 14 concepts to improve the energy supply quality, covering issues to enhance the energy supply under special conditions.

Last update: January 2024