I’m very excited about implementing solar and biomass technologies to provide affordable, efficient and off-grid energy to people living at the base of the pyramid (BOP) and in far flung areas. It is estimated that 77.72 million households constituting 55.2% of the total households are yet to be electrified. Given the fact that grid extensions can cost up to $10,000 per kilometer these technologies are a much more cost-effective and reliable source of off-grid power for the BOP.

Projections show that India’s emissions would touch 6.5 billion tons of CO2e in 2030 from 2.4 billion tons in 2005. There is an urgent need to plan for ensuring energy and environmental sustainability without compromising on goals for economic and social development.

1. Solar: Solar utilizes fuel that is essentially free and limitless. The majority cost of using this energy isborne up front due to cost of the technologies but the prices are dropping and are becoming affordable through government subsidies and financing programs. Solar energy is presently cost effective when implemented on a small scale through solar lamps and small sized photovoltaic panels enough to light two-three lamps, which serves the primary needs of a household. Medium sized panels can supply energy to a community with a few small houses.

2. Biomass: Communities can use biomass technologies to generate electricity. According to my analysis gasification is a better biomass technology to implement instead of incineration. Gasifiers do not pollute like incinerators and produce a gas that can be used to power a turbine or supplied as a cooking gas. Almost any organic material even plastic can be used as feedstock, which decreases the need for segregating waste.

Implementing solar and biomass projects:

1. Finance: Innovative financing schemes through microcredit organizations or government projectswill be crucial for successful implementation. Microcredit organizations will be not only provide finance to buyers but also serve as distribution channels to reach the BOP. For community wide projects local entrepreneurs would be roped into building the project, then recovering their cost and finally transferring the ownership to local governments or communities.

2. Appropriate technologies: Customization of the available technologies for ground realities isnecessary. For example for biomass plants a study of the local community’s waste will be done todesign the gasifier. And the solar products for households will differ according to location and requirement.Existing government incentives:1. Solar: The government is aiming to achieve installation of20,000MW by 2020. Farookh Abdullahrecently announced that new solar tariffs and incentives would be announced in March, 2010 so Icannot speculate on what the new incentives will be. But they are expected to be much higher than thepresent national feed-in tariff rate of INR 12 for projects under 50MW.2. Biomass (gasification): A national incentive in form capital subsidy of USD 16,000 per 100 KW(INR8 Lakh per 100KW) exists. Revision to this is also expected in the next year