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Resource centre on India's rural distress
 
 

Focus on power-poverty



The International Energy Agency (IEA) has highlighted that over 20% of the global population or 1.4 billion people lack access to electricity, which hinders economic and social development. Here in India, the grim reality is that almost half the population in rural areas has little or no supply of power. For long years, open-ended subsidies in power have mostly been diverted and usurped by the undeserving non-poor.

Fortunately, social, managerial and technical innovation in power promises to proactively stem runaway revenue leakage and theft of power in distribution, and significantly boost access to quality supply. Reports say that the Jyotigram scheme in Gujarat, which separated feeder lines for agricultural power supply, has greatly improved electricity access, quality and put paid to state power utility losses.

The scheme needs to be ramped up pan-India , and especially in states with large agripower load. Dedicated feeder lines, metering and supply during off-peak hours can dramatically improve the economics of power, especially for agriculture . Limited subventions for rural supply and those for low-consumption households can then be well targeted . All this, of course, calls for innovation in designing the transmission and distribution infrastructure and for large-scale investment in this segment.

In tandem, a technical solution for India’s rural power woes needs to be envisioned and followed through. The recently developed high-lumen light emitting diodes (LEDs) are the ideal solution for rural lighting. Note that the power consumption in LEDs is as low as half a watt, as against 7-10 watt for compact fluorescent lamps (CFLs).

Also, LEDs are ‘install and forget’ systems, providing up to 1,00,000 hours of illumination or, at six hours of usage per day, have a life of 45 years! LEDs are also perfect for lighting up with solar power, requiring as they do DC supply , very unlike, say, CFLs. However, LEDs remain pricey, although costs have been tumbling following economies of scale in production worldwide.

The way ahead is to make available attractive finance options to boost demand for LED systems. In parallel, we need to phase out the subsidy on kerosene that costs the exchequer some . 20,000 crore annually, and use the monies instead to fund solar-powered lanterns, etc.