Financing clean energy transitions will play a key role in India’s transition into a net-zero economy by 2070. The updated Intended Nationally Determined Contribution (INDC) defines the targets for this intended leap which include:
Reducing emissions intensity of GDP by 45% by 2030
Obtaining 50% of installed capacity from non-fossil fuel sources by 2030
Creating a carbon sink of 2.5 to 3 billion tons through increased forest cover
Promoting a sustainable lifestyle across communities
Sectors like agriculture, industry, transport, and services will transition to clean energy, given it becomes affordable and there is financing available for this shift. Further, the existing market in new and old forms of energy, the evolving infrastructure and the scales of pricing and subsidies will all also have to keep arriving at concomitant points of equilibrium as one moves ahead. But some questions remain:
How does one make sure that this change remains people-centric and is sensitive to equity considerations?
How will domestic finance solve the distribution problem across users with different SDG positioning, living in diverse locations?
Can there be a model framework for such a transition that can take into concern all these questions? Are there existing ones that can be adapted?
What are the clean energy transition financing solutions for rural households of aspiring, laggard districts of select states of India?
What are the clean energy transition financing solutions for select DISCOMs of India?
The project analyses these questions in the context of clean energy financing for the GRID based DISCOMs and rural households, and the various business and institutional models facilitating that.
The goal of the project is to understand financing issues, service challenges, and solutions of the clean energy transition at the rural household level, GRID-based DISCOMS and co-design solutions. This study will be conducted in the selected laggard and aspiring districts of UP, Bihar, and Jharkhand.
Why is energy transition finance important to create access for these districts within the context of micro and mini grid-based clean energy transition?
How can the financial mechanisms and business models (Capex, Revenue, Philanthropic with public, private, public-private institutional partnerships) be suitably designed for the micro and mini grid-based clean energy solutions across the chosen districts?
How can the financial mechanisms and business models for the chosen rural solar micro and mini grids be integrated with the technical capacity of the supply side infrastructure of power in the laggard and aspiring districts of UP, Bihar, and Jharkhand?
What are the clean energy transition financing mechanisms for the chosen DISCOMS?
Outcome 1: A policy roadmap to address the gaps related to clean energy financing institutional and business models of unserved off-grid aspiring villages Of Uttar Pradesh, Bihar, and Jharkhand
Outcome 2: A roadmap to address the grid-based DISCOM specific challenges for clean energy solutions and financing in the short, medium and long term.
Document and research paper (s) | Discussion Papers/Policy Briefs | Film on Clean Energy Transition Finance Roundtables and dissemination conference for outreach | Policy Brief (and associated op-eds, and publications) on Clean Energy Transition Finance
The project uses evidence-based empirical research, applying a mixed-methods (qualitative and quantitative) approach along with a normative framework-based analysis. There is also the integration of SDG dimensions that necessitates a transdisciplinary modelling of the emerging data.
Policy, regulatory, governance, developmental and operational implications
Supply and demand side gaps with a consideration of social and developmental risks associated with clean energy transition for India.
Based on the SPI(Social Progress Index) for states and districts made by the Institute for Competitiveness and Social Progress Imperative, a machine-learning exercise was taken up to study the districts in the states of Uttar Pradesh, Bihar and Jharkhand and the categories of ‘Aspiring’ and ‘Laggard’ were arrived at by the team at ACPET. The team plans to conduct their study in 12 such districts, with an equal mix of ‘Aspiring’ and ‘Laggard’ ones.
On the field, the following activities have been planned to assess the financing of rural energy transition
Data collection will focus on household surveys designed by professional survey agencies
Surveys will discover and assess the future energy needs of rural households, their willingness to pay
Surveys of cooking solutions, home lighting, and other household-based energy solutions currently in use
The following activities for the financing of grid based storage solutions
Grid based DISCOM storage solution assessment
Financing of grid based storage solutions and transitions
Assessment of gaps, opportunities, challenges and potential for scalability
Engagements with experts as well as stakeholders on the ground will be taken up to co-design and implement the suggested solutions framework.
The study is being conducted across the states of Bihar, Jharkhand and Uttar Pradesh where the following sites will be covered
Two DISCOMs (at least 10 MW)
Surveys from 60 villages in 12 aspiring as well as laggard districts; these include representations from:
Project Team: Dr. Anandajit Goswami Research Fellow, (PI)
Mr. Animesh Ghosh (Research Fellow, Core Team)
Ms. Sharmistha Baig (ACPET - Survey Lead)
Ms. Navya Malik Junior Research Associate
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