DRE systems can provide clean and affordable energy, reducing dependence on expensive and polluting fossil fuels like kerosene and diesel. This can improve health outcomes, as indoor air pollution from burning fossil fuels is a major contributor to respiratory diseases.
What is DRE?
It is small-scale renewable energy systems that are located close to the energy consumers, as opposed to large centralized power plants that supply energy to a grid. In rural areas of Asia and Africa, where many communities lack access to reliable electricity, DRE systems like solar panels, wind turbines, and small-scale hydropower systems provide lots of benefits.
It also creates new economic opportunities in rural areas e.g., development of local businesses that sell and install renewable energy systems, or the establishment of new industries that rely on a steady supply of affordable energy. Additionally, they can help to improve energy security and resilience in rural communities, as they are less vulnerable to disruptions caused by weather events, natural disasters, or infrastructure failures.
Overview of the energy landscape
The energy situation in rural areas of Afro Asia is characterized by a lack of access to reliable and affordable electricity. According to the International Energy Agency, approximately 700 million globally people still lack access to quality electricity, and most of these individuals live in rural areas.
The main source of energy for many rural households in India are traditional biomass fuels such as firewood, dung cakes, and agricultural residues. These fuels are often used for cooking and heating, and are associated with high levels of indoor air pollution that lead to respiratory diseases and other health problems.
In rural areas where electricity is available, it is sometimes unreliable, with frequent power outages and voltage fluctuations. This can have significant impacts on rural businesses, agriculture, and education, and can make it difficult for households to access basic services like healthcare and communication.
The lack of reliable electricity also limits economic opportunities in rural areas. Small-scale industries and businesses, such as those involved in food processing or manufacturing may struggle to operate without access to a steady supply of electricity. Additionally, farmers may have difficulty irrigating their crops, which can limit agricultural productivity and exacerbate food insecurity.
The challenges of providing reliable electricity to rural areas in India are compounded by factors such as geography, poor infrastructure, and limited financial resources. However, distributed renewable energy systems offer a potential solution to these challenges, as they can provide clean, reliable, and affordable energy to rural communities without the need for large-scale infrastructure investments.
Different available technologies in DRE
Distributed renewable energy technologies offer a range of options for providing clean, reliable, and affordable energy to rural communities, regardless of their location or access to traditional energy infrastructure. Here’s a look.
Solar panels: Photovoltaic (PV) solar panels convert sunlight into electricity, which can be used to power homes, businesses, and other structures. In rural areas, solar panels can be used to provide electricity to off-grid communities, or to supplement the electricity provided by the grid.
Wind turbines: Small-scale wind turbines can generate electricity from wind power, which can be used to supplement or replace grid electricity in rural areas with reliable wind resources.
Small-scale hydropower systems: These systems use small turbines to generate electricity from the flow of water in rivers or streams. They can be used to provide electricity to off-grid communities or to supplement grid electricity in areas with reliable water resources.
Biomass gasifiers: Biomass gasifiers use organic materials such as agricultural waste, wood chips, or other biomass to generate electricity. They can be used in off-grid or grid-connected settings, and are often used in rural areas where biomass resources are abundant.
Biogas systems: Biogas systems use organic waste materials such as animal manure or food waste to produce biogas, which can be used to generate electricity or for cooking and heating. They are often used in rural areas where there is a large amount of organic waste available.
DRE for rural development
Distributed renewable energy has the potential to offer numerous advantages for rural communities, providing clean, reliable, and affordable energy that can support sustainable development and improve quality of life for millions of people.
Improved access to electricity: Distributed renewable energy can provide off-grid and under-served communities in rural India with access to clean and reliable electricity, which can improve their quality of life, enhance educational opportunities, and support economic development.
Increased energy security: Distributed renewable energy systems can provide rural communities with a more secure source of electricity, reducing their dependence on centralized power plants and long-distance transmission lines that are vulnerable to power outages and other disruptions.
Reduced energy costs: Renewable energy systems like solar panels and small-scale wind turbines can reduce energy costs for rural communities by providing a free and abundant source of energy. This can help to alleviate poverty and improve the economic prospects of rural households and businesses.
Improved health outcomes: The use of traditional fuels like wood, dung, and charcoal for cooking and heating is associated with indoor air pollution, which lead to respiratory diseases and other health problems. Distributed renewable energy systems provides a cleaner source of energy, improving indoor air quality and reducing health risks for rural households.
Reduced greenhouse gas emissions: Distributed renewable energy systems produce little to no greenhouse gas emissions, which help to mitigate climate change and improve environmental sustainability.
Creation of local jobs: The development, installation, and maintenance of distributed renewable energy systems create new jobs and economic opportunities for rural communities, supporting local businesses and enhancing local economies.
Example: OMC
The future of distributed renewable energy in rural India
The future of distributed renewable energy in rural India looks bright. The government of India has set ambitious targets for renewable energy deployment, with a goal of achieving 450 GW of installed renewable energy capacity by 2030, including 175 GW of installed capacity from solar, 60 GW from wind, and 10 GW from biomass.
To achieve these targets, the government has implemented a range of policies and incentives to encourage the deployment of distributed renewable energy systems in rural areas, including subsidies for off-grid solar systems, feed-in tariffs for grid-connected renewable energy systems, and tax incentives for renewable energy projects.
In addition to government support, the falling costs of renewable energy technologies, such as solar PV and wind turbines, are making them increasingly cost-competitive with fossil fuel-based energy sources. This trend is expected to continue, as advancements in technology and economies of scale continue to drive down the costs of renewable energy systems.
Another important factor driving the growth of distributed renewable energy in rural India is the increasing awareness of the benefits that renewable energy can offer, including improved energy access, reduced energy costs, and improved environmental sustainability. As more rural communities become aware of these benefits, they are likely to embrace distributed renewable energy as a way to improve their quality of life and support local economic development.
Overall, the future of distributed renewable energy in rural India is promising, with continued government support, falling costs of renewable energy technologies, and growing awareness of the benefits that renewable energy can offer. With these factors in place, distributed renewable energy has the potential to transform the energy landscape in rural India, providing clean, reliable, and affordable energy to millions of people while supporting sustainable development and economic growth.
Various business models today are being conceptualised to deliver DRE. The key challenge is to ensure sustainability while maintaining quality and affordability. OMC Power is one such company which has been developing its DRE model in rural Uttar Pradesh and Bihar across 350 villages. They have pioneered an all segment inclusive distribution model irrespective of the consumption need. Establishing Smart Grids and Captive plants with a renewable energy generation storage and distribution network that uses solar energy as its main source to supply electricity in the rural areas. With a generation capacity of 39MWHrs, OMC has pioneered its business model to simultaneously provide reliable, uninterrupted and affordable power supply to Telecom, Business and Communities which are the three main consumption sectors. This inclusive A-B-C model is what OMC Power has pioneered.:
“A”nchor Telecom sites have been freed from generators that guzzling gallons of diesel. DRE connectivity has reduced diesel dependency in operating the anchor sites by providing them with uninterrupted supply of reliable and green electricity.
“B”usiness segments- To enhance their economic outputs during hours of power failure shops and establishments resort to fossil fuels. DRE has helped them not only increase business efficiency but also reduced their energy expense.
“C”ommunities- With the simple act of providing affordable and quality electricity to every household OMC’s DRE has helped the community leap towards social and economic development. Children can now study longer and ladies can cook and safeguard their families.
The development, installation, and maintenance of DRE systems can create new jobs and economic opportunities for rural communities, supporting local businesses and enhancing local economies. Moreover, DRE systems produce little to no greenhouse gas emissions, which helps mitigate climate change and improve environmental sustainability.
The future of distributed renewable energy in rural areas looks promising. The government of India has set ambitious targets for renewable energy deployment, with a goal of achieving 450 GW of renewable energy capacity by 2030. Several initiatives, such as the Off-grid and Decentralized Solar PV Application Program, have been launched to promote the use of DRE systems in rural areas. Private sector players are also investing in DRE systems, recognizing the potential for growth and profitability.
In conclusion, DRE systems offer a promising pathway to energy democracy, providing clean, reliable, and affordable energy to rural communities in India. The adoption of DRE systems can improve the quality of life of millions of people, enhance educational opportunities, and support economic development. DRE systems also offer environmental benefits, such as reduced greenhouse gas emissions, and can create new jobs and economic opportunities for rural communities.
The author, Rohit Chandra, is Managing Director & CEO, OMC Power