Energy As A Service

Energy plays a fundamental role in human development in cities and villages, in rich and poor countries. Everywhere on our planet people need energy to survive, to raise children, to care for the elderly and to earn a living. The Human Development Index and International frameworks such as the United Nation’s Millennium Development Goals (MDGs) are inherently dependent on enhanced energy supply as a vital precursor to economic development as well as the achievement of a number of varied social development goals. India currently suffers from a major shortage of electricity generation capacity, even though it is the world’s fourth largest energy consumer after United States, China and Russia.

A major challenge facing our country is how energy-related development can be replicated and scaled up. In impoverished and undeveloped areas, small amounts of electricity can free large amounts of human time and labour. In this context, the Society for Technology and Action for Rural Advancement (TARA) through its SPEED (Smart Power for Environmentally-sound Economic Development) project is contributing to positive impact on the lives of poor and vulnerable populations by providing affordable and reliable clean energy to rural communities, thereby enhancing livelihood security and improving the quality of life in the underserved regions of the country. The SPEED projects are based on a ‘for-profit social enterprise business model’ set up to provide a return to investors and at the same time provide a service to low-income customers. Solar electric (photovoltaic) panels are used as the preferred technology for electricity generation in the SPEED projects, as they do not need huge infrastructure and are thus more economically viable.

A SPEED project has been successfully implemented in Fakirtoli village of Amnour block in the Saran district of Bihar. The village constitutes of 120 households and 80 shops. 70 households and 50 shops have been provided electricity through TARAoorja (solar power plant). Migration of the villagers to far off cities for earning their livelihood has slowed the process of providing 100 percent electrification in this village.

Increasing access to solar power is a win-win for both people and profit. In the recent past before the SPEED project came to this village, people used to spend Rs 10 per day approximately for using a single dim kerosene lamp. Paying to have a mobile phone charged costed around the same, not taking into account the time to get the phone to a place with electricity. Now after implementation of the SPEED project, the saving on kerosene and phone charging made over six months more than covered the cost of a LED bulb.

Energy as a service has created a positive impact on the lives of these villagers. Having access to regular light means children are able to study at night, people are able to work till late in the evening and markets can remain open till late. Moreover, since people are able to charge their mobile phones regularly, it means they can access information and be more aware of what is happening in the world around them. A fee collector and technician visit the village weekly to take payments and check if the appliances are working properly and sort out technical problems if any. The tight-knit village community has shown a strong social will to pay for electricity as a service.

Energy as a service in Fakirtoli village has created a new hope of ending energy related poverty, which had prevented the progress of both human and economic development. q

Dharmraj Singh
dbsingh@devalt.org

 

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