Energy Supply
Models for Low Income Markets O ut of all the upcoming and popular renewable energy options, solar is possibly the most economically mature option at this time. Other upcoming technologies are wind and biomass. Depending on the population in an area and its needs, broadly three types of renewable energy supply models exist for the low income m![]() a. Device Based Power Distribution Model Device based power distribution systems rely on integrated rechargeable battery based devices, which are portable. These are charged at a single charging station and then physically taken to the consumer’s location where they are used. Such devices are sold by Energy Services Companies (ESCOs) for a small one-time fee. Typically, such devices can power one or two LED lights for a few hours in a single recharge. After the battery in their device is exhausted, consumers trade their used devices for fresh ones the next day. This system is logistically intensive and is suitable only for basic lighting. |
OORJA Mitra – a device based approach used in the SPEED project The Society for Technology and Action for Rural Advancement (TARA) involved in creating energy access in rural India through many path breaking projects such as SPEED (Smart Power for Environmentally-sound Economic Development), implemented this model at an island in Bihar – Diara Rasulpur. At this site, ‘OORJA Mitras’ (or battery based devices) are being rented out on a daily basis to consumers.The device in one recharge is able to run two LED light bulbs for 6 hours and can charge 1 mobile fully. This model does away with the need for laying down a physical grid and additionally provides employment to people who are involved with the running of the system. This island is no longer dependent on the mainland for its basic power needs. |
b. Pico-Grid Model for Energy Distribution In areas where consumers are scattered and portable device based distribution systems are not feasible, a decentralised generation and distribution model is available. Electricity is generated by a single 250-300Wp panel and is shared by a few households. In such cases, there are multiple number of such plants meeting the requirements of a village by following a more localised approach. In the event of a technical failure, only a particular pico-grid may be affected. Due to the decentralised and localised nature of this distribution technique, it is in people’s best interest to maintain the energy generation and distribution infrastructure. |
GAIL Pico-Grids in Phaphund, Uttar Pradesh As part of a CSR Project, TARA in association with UNO-Minda has set up 23 solar powered Pico-Grids (each servicing approximately 30 households) in Auraiya district of Uttar Pradesh. The service is a huge success in the locality. People are charged a very small fee for the basic lighting electricity service. |
c. Mini-Grid Model for Energy Distribution In areas where loads are located in close proximity to one another, electricity grid lines are credible. These lines are independent of the state electricity board and are meant for localised power distribution. Power is supplied from a centralised plant which is dedicated for only those lines. Various types of loads spread out across several villages may be serviced by a mini-grid at a time. In certain areas, certain loads requiring constant power (called anchor loads) may be available in addition to smaller loads. |
Mini-Grid at Fakirtoli TARAoorja (or the Micro Utility Business) incubated by TARA has set up a distribution grid at Fakirtoli in Saran, Bihar. This mini-grid services a variety of customers, some of whom even run micro-enterprises on the grid. Customers here enjoy uninterrupted power for upto 6 hours in a day for a very reasonable price. |
Various players in the industry are experimenting with various models – each with its own set of pros and cons. The sheer size of the market being what it is – it is only a matter of time that these solutions become even more easily available for people in the low income market. q Arjun Dhawan
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