DRE enterprises have been acting as dedicated clean energy solutions provider for the un-served and under-served segments of Indian population. It has catalyzed innumerable lives of this segment of population by creating opportunities for better livelihoods, increased income levels, safe and healthy living conditions, leapfrogged education opportunities and empowering women by eradicating drudgery at many levels.
2. Genesis of Decentralized Solution
2
In India, poor and marginalized communities face the dual challenges of low socioeconomic
development and extreme vulnerability to climate change
There have been significant improvements in India’s rural household electrification, electricity
availability for health centers, schools, and rural enterprises is still limited
Electricity is one of the enablers of socioeconomic development
Decentralized solar energy solutions are increasingly considered for bringing reliable electricity to
community facilities, especially in climate vulnerable areas
Although decentralized solar solutions are not entirely immune to extreme events, they are relatively
more resilient than centralized electricity systems
3. Linkages between Electricity Access, Development,
and Climate
3
The Paris Agreement governs the framework of SDG 13 and require all signatory countries to ‘seek
to promote low-emission, resilient development pathways that limit the temperature rise to well
below 2 °C, ideally 1.5 °C
India faces the dual challenge of meeting its development goals while also reducing climate change
impacts
The relationship between electricity access and development is bidirectional
Decentralized RE can contribute to both goals by providing opportunities to power healthcare,
education, and livelihoods in communities most at risk from climate-related effects
4. Electricity Access
4
Health Education Livelihoods
Communication
Lighting
Water
Extended
Working Hours
Sanitation
Refrigeration Power for
diagnostic
devices
Sterilization of
instruments
Space heating Information and
communications
Clean Water
Quality
Education
Sanitation
Classroom
comfort
Lighting
Early morning &
late evening classes
Space heating
Farm-based livelihoods
Energy is relevant to the value chain from production
to post-harvest storage, processing, and marketing
Mechanization of activities such as sowing, irrigation,
spraying, and harvesting can improve productivity
40-45% of the agriculture sector is mechanized in India
Market potential for mechanization at the production
level through clean energy is close to $30 billion
Potential to increase India’s annual rural incomes by as
much as $ 5.5 billion1
1 Zhang 2019
2 Power for All Fact Sheet
Non-farm livelihoods
Wide range of application in manufacturing, process
heating and cooling services, cooking, information and
communications technology (ICT), and mechanical
processing, manufacturing, and repair
Vaccine Refrigerators
Portable Maternity Kits
Baby warmers
Centrifuges for blood analysis
Solar powered OT
Around 32 million children attend schools
in India lacking any form of electricity
45% increase in study time with lights2
68% increase in functionality of science
labs after solar system installed2
Mobile and HLS charging at schools
5. Segments on the horizon
Micro Cold Storage
5
Total Installations: ~400+
Major Players: Ecozen Solutions, Coolcrop, New Leaf Dynamics, TESSOL, Inficold
Typical System Cost: USD 16900-33,800
Key Financiers:
Enterprise financing: Sathguru Catalysers, cKers Finance, Caspian, Omnivore,
HivosTriodos, IFMR, Sangam Ventures
End-user: Axis Bank
Market Potential: USD 140 million
Impact on Livelihoods: USD 225-845 per month
SDG Impacted:
6. Segments on the horizon
Solar Dryers
6
Total Installations: 2000+
Major Players: S4S Technologies, PLUSS Technologies
Typical System Cost: ~USD 705-2,817
Key Financiers: Shell Foundation
Market Potential: ~USD 360 million
Impact on Livelihoods: USD 352-704 annually
SDG Impacted:
7. Segments on the horizon
Solar Rice Mill
7
Total Installations: 12
Major Players: Alto Precision
Typical System Cost: USD 2530-8500
Key Financiers:
Enterprise incubation: Social Alpha, AIM-Sangam
Market Potential: ~USD 132 million
Impact on Livelihoods: Increase in weekly income from ~USD 282 to USD 450
SDG Impacted:
8. Segments on the horizon
Solar Freezer/Refrigerator
8
Total Installations: 2000+
Major Players: Devidayal Solar, Cygni, Phocus, Godrej
Typical System Cost: ~USD 140-563
Key Financiers:
Enterprise financing: Kotak Mahindra Bank
Market Potential: ~USD 8-10 million
Impact on Livelihoods: USD 75-250 as additional income/savings annually
SDG Impacted:
9. Segments on the horizon
Bulk Milk Chillers
9
Total Installations: ~1000+
Major Players: Promethean Power Systems, Inficold, New Leaf Dynamics, Ice Make
Typical System Cost: ~USD 7,042
Key Financiers:
Enterprise financing: Sangam
Ventures, Acumen, Caspian Advisors
Market Potential: USD 80 million
Impact on Livelihoods: Incremental increase in milk collected up to 55 million litres
per day
SDG Impacted:
10. Segments on the horizon
Solar Powered Spinning & Reeling Machines
10
Total Installations: 11,000+
Major Players: Resham Sutra, Microspin
Typical System Cost: ~USD 140-423
Key Financiers:
Enterprise financing: ASME
End-user financing: Sammuniti
Market Potential: ~USD 132 million
Impact on Livelihoods: 100% increase in monthly income
SDG Impacted:
11. Recommendations
11
Key Challenges
• Lack of adequate progress amongst mature
organizations
• Lack of scalable business models
• Risk perception amongst financiers due to high
dependence of enterprises on government subsidies
• Restrictive norms for investment by foreign
institutions
• Competing government policies
• Low awareness regarding emerging technologies
Way forward
• Bridge finance to address risks related to delay in
subsidy disbursal
• Credit guarantee and risk mitigation mechanisms to
encourage engagement from lenders
• Support for new and emerging business models
• Long term (patient capital) for innovators to scale up
• Explicit recognition for solar powered applications for
rural livelihood schemes
• Subsidy for DRE technologies should be at par with
subsidy for other technologies
13. Annexure
Schemes of the sector
13
07
06
05
04
03
02
01 Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) Scheme
Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya)
National Biogas and Manure Management Programme (NBMMP)
Scale up to Access of Clean Energy Scheme (ACE)
Solar Charkha Mission
Solar Study Lamp Scheme
Atal Jyoti Yojana II (AJAY)