Pre-election, India trade group appeals for parties to ramp up support for last-mile clean energy solutions

CLEAN and its more than 160 members requested that all national and state political parties make decentralized renewable energy a pillar of their party platforms to guarantee quality, reliable 24/7 power to rural businesses and households.India

CLEAN, the association representing India’s decentralized renewable energy (DRE) industry, issued a public call to action, “Guaranteeing Energy Access: A Key Role for Decentralized Renewables”, requesting all Indian political parties to create enabling policy frameworks and adequate financial provisions for prioritizing the DRE sector within India’s energy planning. The six recommended actions are:

1. Recognize DRE as an integral part of India’s energy planning

The DRE sector can ensure energy access by providing 24x7 electricity to all Indian households and small- and medium-sized enterprises, and importantly ensure reliable and quality energy supply through clean and sustainable energy sources.

We therefore request that DRE be recognized as a central solution in national and state energy planning.

2. Promote investment in DRE

In order to ensure a level playing field for the DRE sector vis-a-vis other solutions, predictable and affordable financing is a requisite.

We therefore request all political parties to clearly identify DRE as a priority sector and formulate policies to ensure support of the DRE industry by banking sector institutions in India, such as Development Financial Institutions, Commercial Banks, Non Banking Financial Companies, Micro Finance Institutions, Corporate Investors through Corporate Social Responsibility Funds and other lenders.

3. Create rural jobs

The DRE sector is already generating new jobs and creating opportunities for rural entrepreneurship, with still huge untapped potential. DRE applications also add value to the agricultural sector, creating new and additional markets for the farming community. Productive DRE applications reduce drudgery, increase productivity and income for rural consumers (CLEAN would be happy to share a list such DRE applications.) Solar Charkha is one such example which has created jobs and increased income. CLEAN estimates that at least 41,868 new jobs were created in 2017/18 in India in the DRE sector.

We therefore request recognition of such technologies as an important tool for rural income generation and that direct non-energy ministries recognize DRE in their policy guidelines and provide financial support for DRE applications, in line with current and future mandates. Further, we also request the inclusion of skill development in DRE with other skill development programs of the government.

4. Reduce carbon emissions

The DRE sector contributed to avoiding emissions of 2,84,685 tonnes of CO2 in 2017–18 alone. Scaling up DRE systems would result in far higher avoided CO2 emissions, while also benefiting the overall economy of the country. For instance, imports of diesel can be reduced through the promotion of DRE applications. To put this in perspective, around INR 40,000 crores (USD 6.1 billion) of oil imports can be saved through the replacement of existing conventional pumps with solar pumps in India.

We therefore request that the DRE sector’s contribution to emission reduction is factored into the Government of India’s National Determined Contribution (NDC) submission to the UNFCCC.

5. Clean cooking mission

High dependence on firewood for cooking and heating in India and the resultant biomass burning is responsible for around 2,67,700 deaths in India, or nearly 25% of the deaths attributable to PM2.5, making it the single most important anthropogenic source related to mortality in 2015.

We therefore request, in accordance with a proposal already put forward by NITI Aayog, that a National Clean Cooking Mission is formulated and launched at the earliest. The mission needs to be mandated to ensure 100% access to clean cooking technologies, factoring in all available solutions.

6. Resolve regulatory issues of mini-grids

Mini-grids not only ensure 100% reliable, quality energy access, but also solve “last mile connectivity” while addressing energy security in India. The framework conditions for deployment of mini-grids, laid down in the Amendment to National Tariff Policy in 2016, stipulate that an appropriate regulatory framework should be put in place to mandate compulsory purchase of surplus power generated by mini-grids into the national grid. A fillip was provided to the segment with the issuance of the Draft National Mini-grids Policy in June 2016. However, this policy has not been finalized nearly three years later.

We therefore request that current regulatory uncertainty related to mini-grids be addressed by introducing policies and regulations at the central level as soon as possible with technical standards and parameters.