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This post on Solar energy mini-grids has been created based on the article ‘The small grid – energy security, with a little help from the Sun’, published in The Indian Express on 14th November 2023.
UPSC Syllabus Topic: GS Paper 3 – Indian Economy – Infrastructure and Energy – Solar energy
News: The article discusses the role of solar energy mini-grids in addressing energy poverty, particularly in rural areas of developing countries.
What are Solar energy mini grids?
Solar energy mini-grids are small-scale, decentralized electricity networks powered by solar energy. Unlike traditional large-scale power grids, solar mini-grids are localized and can operate independently. They can produce enery amount from a few kilowatts up to 10 megawatts. They are primarily used to provide electricity to rural communities that lack access to the central power grid.
What are the developments around use of mini grids?
Nigeria: Over 90 million people in Nigeria live without electricity. The World Bank aims to fund a thousand mini-grids there, as part of a broader goal to bring electricity to 75% of the 675 million people worldwide living without it. 20,000 mini-grids have been installed to date.
In Cambodia, diesel-powered mini-grids evolved into part of the national grid, now serving over 1 million consumers.
In India, around 700 solar mini-grids are operated by handful of private companies. These grids are mainly in UP, Bihar, and Jharkhand, contributing to sustainable development goals. States like UP and Bihar have introduced regulations to encourage private-sector mini-grid setups. These grids are commercially viable and unsubsidized, unlike state-run grids.
What are the significances of Mini grids?
Economic and Environmental Benefits: Solar mini-grids offer a cost-effective, sustainable alternative to diesel generators. They are instrumental in reducing reliance on fossil fuels and promoting renewable energy.
Decentralised energy systems: In the absence of centralised grid infrastructure, these grids are crucial in climate-vulnerable regions, offering resilience against climate shocks like drought and flooding.
Development Accelerators: Beyond providing electricity, these grids facilitate various rural development services, enhancing the quality of life and economic opportunities in rural areas.
Mini grid companies are also providing mobile telephony, irrigation, agro-processing, e-mobility.
Cost of solar PV energy is now highly competitive, standing at $24/MWh, lower than both coal and natural gas.
100% electrification in India: Under e Pradhan Mantri Sahaj Bijli Har Ghar Yojana (‘Saubhagya’), on march 2019, government declared 100 percent electrification of all ‘willing’ household. But this effort was aimed at extending the reach of grid electricity, which does not specifically address the quality and reliability of electricity supply. Mini grids are important in improving reliability of electricity services.
What are the Challenges of installing mini grids?
Funding requirement: Despite being the cheapest source, only 10 percent of the amount required to achieve net-zero emissions, has been invested in solar energy.
About $220 billion is required to build 210,000 mini-grids needed globally. Currently, solar investments are only 10% of what is needed for net-zero emissions.
Energy bias: There is a bias towards favouring large-scale solar projects on the national and international level. International frameworks like ISA(International Solar Alliance) are favouring such bias.
What should be done?
Energy mix: There is a need of diverse energy mix, which is focussed on adequate centralised and distributed renewable generation.
Financial Mechanisms: Implementing guarantees and innovative financial mechanisms, along with robust risk underwriting, can catalyze private sector investment in solar mini-grids.
International Support: Initiatives like the ISA’s Global Solar Facility aim to catalyze investments in solar projects, especially in underserved regions. Similar initiatives are required for mini grids as well.
Question for Practice
How do mini-grids contribute to achieving sustainable development goals, particularly in terms of providing reliable and affordable energy?
