- Approximately one-third of the individuals living in India do not currently have access to electricity, and most of these individuals reside in rural areas. More specifically, an estimated 45% of rural households remain without electricity.
- A promising approach to the challenge of rural electrification is to increase the deployment of decentralized energy generation through the use of microgrids, which refers to a smaller-scale electric grid combined with a local generation source.
- Officially, 95% of villages in India are classified as electrified.The reason for this apparent disconnect is two-fold. First, villages are considered by the government to be electrified if at least 10% of their households are electrified and if their public structures such as schools and health centers are also electrified. Second, hamlets – or settlements on
the outskirts of a village – are often not included in the statistics on the percentage of villages currently receiving electricity.
- Most villagers in any region of India were could afford enough electricity to power two light bulbs and a cell phone charger.Even if their demand were to increase to a level that could power three light bulbs, a television, a fan, and a number of other appliances, which estimates that the average load for a rural household would amount to less than one-third of a kilowatt.If a rural village consists of 45 to 60 households, peak load demand would thus only total approximately 15 to 20 kilowatts. This poses a challenge for rural electrification because low demand makes it harder to recover the upfront investment needed to extend the central grid or to install distributed generation (DG) technologies in remote areas.
- The cost of generating, transmitting, and distributing electricity from a coal thermal power plant to remote areas of the country to range between Rs. 3.18/kWh to Rs. 231/kWh for villages that are between 5 and 25 km away from the central grid.They find that for villages with about 20 households and a peak load of 5 kW that are 5 km from the grid, the cost of electricity is about Rs. 26/kWh. This cost of generation, transmission, and distribution increases to Rs. 95/kWh if the required grid extension is about 10 km.
- In 2010-2011, India’s nationwide losses were 23.97%. In comparison, according to the World Bank, China had transmission losses of just 6% from 2009 to 2013. Most of the losses in India stem from three main causes: (a) theft and illegal use of electricity from the lines or tampering with the meters; (b) non-paying consumers; and (c) non/under-billing by the distribution companies.The losses can be even higher in some states. Research from Greenpeace shows that the transmission and distribution losses in Bihar, the state with the lowest electrification rates,
are as high as 46.4%