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Designing a Franchise Model for Conversion from Diesel to Renewable Energy in Rural India

A fourth of rural India lacks access to grid-connected electricity. There are 75 million households without access to any form of electricity. The reason for such low level of consumption is not low demand, but poor access to energy. It is a national priority to deliver rural electrification in India and there are many programmes and policies to help facilitate this. However, progress remains slow.

LEAD is supporting TARA and cKinetics to explore an indigenous solution to combat this deficiency , utilising the existing system of the local village entrepreneurs operating diesel generator (DG) sets and micro-grids.

Objectives

The objective of this project is to remove energy poverty and use access to reliable and affordable clean electricity as a means to bring about economic development and environmental benefits in poverty ridden, rural areas of India.

Outcomes

  • Setting up pilot project: 5 DRE mini-grid based power plants will be established in a cluster of villages in an electricity deficient rural area with engagement of local DG player(s).
  • Development of a Franchising package including: Business processes and systems, value added technology systems and standard operations management package.
  • Innovative financial structuring and interventions: Interventions and financing structures, which will help increase capital flow and help achieve financial closure of projects, will be tested.
  • Engagement model for DG set operators including: Business case for DG operators, framework for identifying DG operators, and process and mode of engagement with DG operators.
  • Plan for scale: Plan for pan-India roll out of the Financing Approach / Package with conversion of DG Operators to achieve scale and replicability.

Other Details

Start Date:06/01/2014
End Date:06/30/2015
Funded by:CDKN

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