News Detail

Rapid strides are being made to extend electricity access to all, especially under the newly launched Saubhagya scheme, a large number of households are still un-electrified. There are over 30 million un-electrified households sanctioned under the scheme, of which 500,000 are in remote and inaccessible areas.

Micro grids are ideal for supplying electricity to remote/rural areas and the hilly terrain that limits the laying of transmission lines and towers. Micro grid solutions are also useful for industrial and commercial enterprises engaged in mining, oil and gas exploration, manufacturing. Also in the event of any calamity, they can provide resilient power back-up.

This segment comprises over 40 established players and new entrants trying to capitalise on the growth opportunities. While no single player has achieved meaningful scale to date, there are some large players linked to conglomerates that have won government tenders, but these enterprises have struggled to claim a sustained pipeline of direct customer sales.

To improve the viability of micro grids, government to extend financial support for both tariffs and upfront costs. Subsidies, cross-subsidies, and other support offered to regular grid providers should be made available to third-party rural providers including micro grid developers. Further, power prices (tariffs) for the grid must be equal to the variable cost of supply at a fuel level. Going forward, micro grids are expected to improve  electricity access across the country.