HOW TO SHINE SUN ON SOUTH ASIA’S POOR

Solar power for the poor needs government support; Governments in South Asia must support solar power to make it affordable to the rural poor…
Vishaka Hidellage, 24 March 2010 (SciDev)

"The accelerating demands for energy in fast-growing South Asia are mostly being met by…coal, gas and petroleum…through the electricity grid…Yet interest in renewable energy, such as grid-connected solar systems, is rising…

"India and Sri Lanka have introduced 'net metering' options…[so that] small-scale generators get paid for their net electricity production, over and above their domestic needs. And Sri Lanka has recently started using the latest technology to transfer power generated from rooftops to the electricity utility, via the grid…[But] a large proportion of the 706 million people living without electricity in South Asia live in remote locations where grid extension is expensive, impractical or simply not viable."

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"In a region blessed with plenty of sunshine, policymakers should instead focus on harnessing decentralised solar power solutions…[G]overnments are slowly waking up…[M]ost South Asian countries now promote solar home systems (SHS) for rural electrification, and provide small grants and subsidies…[for] a photovoltaic solar panel connected to a battery and charge controller, with one or more sockets to power electrical equipment…SHS are convenient and can meet the basic electricity needs of rural households…[reduce] carbon emissions and [eliminate] the cost and ill-health associated with traditional fuels…

"International financial institutions, such as the Asian Development Bank and the World Bank, have proactively supported government efforts to install SHS in remote settings…Microcredit providers that offer small loans to be paid back over 2–3 years, such as Grameen Shakti in Bangladesh, are also increasingly enabling the rural poor to buy SHS…India is home to 700,000 systems (44 MW), Sri Lanka to 125,000…[but] the high initial cost and limited application is preventing its fast expansion."

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"There is still a large gap between what a solar system costs and what the poor can afford…[SHS electricity is] about three times the cost of conventional grid electricity…Yet, in places where there is no grid, alternatives such as solar are the only option, however high the cost. Grid electricity has embedded hidden subsidies…[but] similarly subsidising rural electrification rarely…even gets a fair hearing…Government subsidies are critical…

"Governments must also…[improve] the infrastructure…Applications such as water pumping, dehydration and heating could all improve incomes for the poor. Facilitating local research and development, manufacturing and capacity creation will help achieve this…And governments must abandon policy constraints…Channelling government support into local capacity building and finding opportunities to add value to solar products should be a particular priority…Off-grid solar systems have the potential to radically improve energy access in South Asia…But the benefits of solar technology risk bypassing those that need it most — the rural poor — unless governments step up support."