Publication: Empowering Rural India - Expanding Electricity Access by Mobilizing Local Resources

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World Bank
This document intends to facilitate further discussion of the necessary steps to implement and institutionalize the proposed business models and to introduce the necessary policy and regulatory changes. The remainder of the report is presented in four chapters. Chapter two presents the options available to the utility to address the issue of making electricity accessible to rural areas. It further develops the economic framework for identifying markets that are attractive to distributed generation and supply (DG&S) and the financial mechanisms for ensuring that the model becomes commercially viable for investors as well as utilities. The financial analysis has been undertaken based on the primary and secondary data collected from selected districts in the states of Maharashtra and Haryana. Chapter three summarizes the national and international precedents for enhancing electricity access though various models that involve distributed generation in off-grid or grid-connected mode private-sector participation in the form of franchisees. Chapter four describes the framework for implementing the DG&S model described in chapter one. It explains how the model will work and discusses such issues as selecting a DG&S operator and the position's relevant responsibilities, aggregated net metering, bulk supply tariff, capital investment, the need for viability gap funding, and the possible mechanisms to provide for this gap. Chapter five summarizes actions necessary for the DG&S model to be implemented successfully.
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World Bank. 2010. Empowering Rural India - Expanding Electricity Access by Mobilizing Local Resources. © Washington, DC. License: CC BY 3.0 IGO.
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