Providing basic minimum energy services has become a real challenge for developing countries of the world. India encounters the problem of provisioning basic minimum electricity services to a section of her population. Renewable energy-based decentralised systems have emerged as a viable electrification option for many developing countries of the world, particularly for rural and remote areas of the country.
This study explores the replication and scaling-up of potential of such mini-grids in the least electrified states of India by considering a set of evaluation criteria i.e. grid-extension option, renewable energy resource potential, electrification rate, organisational strength, presence or absence of technical support system, and ease of access to banking services.
Overall rankings suggest that top 20% districts offer good business potential for private investors to venture into the mini-grid market. However, the concern lies with the districts placed at the bottom, which require specific government interventions through appropriate policy, regulatory and financial support.
Download the full study here.