Providing electricity access to remote areas in India: An approach towards identifying potential areas for decentralized electricity supply

This study presents the results of a preliminary attempt towards identifying potential areas in India where provision of electricity through renewable energy-based decentralized generation options can be financially more attractive as compared to extending the grid. The cost of generation of electricity from coal, hydro and nuclear power plants and also cost of transmission and distribution of electricity in the country have been estimated. The delivered cost of electricity (generated in a coal thermal power plant) in remote areas, located in the distance range of 5–25 km is found to vary in a wide range varying from Rs. 1 1 1US$=Indian Rupees (Rs.) 45.80 on 20 October 2006. 3.18 to 231.14/kWh depending on peak electrical load and load factor. The study indicates that renewable energy-based decentralized electricity supply options (such as micro hydro, dual fuel biomass gasifier systems, small wind electric generators and photovoltaics) could be financially attractive as compared to grid extension for providing access to electricity in small remote villages.