The villagers of Dharnai in northern India had been living without electricity for more than 30 years when Greenpeace installed a microgrid to supply reliable, low-cost solar power.
Then, within weeks of the lights flickering on in Dharnai’s mud huts, the government utility hooked up the grid — flooding the community with cheap power that undercut the fledgling solar network. While Greenpeace had come to Dharnai at Bihar’s invitation, the unannounced arrival of the state’s utility threatened to put it out of business.
“We wanted to set this up as a business model,” said Abhishek Pratap, a Greenpeace campaigner overseeing the project. “Now we’re in course correction.”
It’s a scenario playing out at dozens of ventures across India’s hinterlands. Competition from state utilities, with their erratic yet unbeatably cheap subsidized power, is scuppering efforts to supply clean, modern energy in a country where more people die from inhaling soot produced by indoor fires than from smoking.
About as many people in India are without electricity as there are residents of the U.S., and the number is growing by a Mumbai every year. Prime Minister Narendra Modi wants to bring electricity to every home by 2019 by leapfrogging the nation’s ailing power-distribution infrastructure with solar-powered local networks — the same way mobile-phones have enabled people in poor, remote places to bypass landlines.
via Cheap Electricity for Poor Squeezing Out Solar in India – Businessweek.
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