An Entrepreneurship Model for Energy Empowerment of Indian Households - Economic and Policy Analysis

Author: 
B. Sudhakara Reddy
P. Balachandra
Hippu Salk Kristle Nathan
Description: 
WP-2008-024
JEL codes: 
Abstract: 
Provision of modern energy services for cooking (gaseous fuels) and lighting (electricity) is an essential component of any policy aiming to address health, education or welfare issues; yet it gets little attention from policymakers. Secure, adequate, low-cost energy of quality and convenience is core to the delivery of these services. The present study analyses the energy consumption pattern of Indian domestic sector and conceptualizes availability, accessibility, and affordability indicators of modern energy services to households and describes the practical ways of evaluating them. A comprehensive analysis is done to estimate the cost for providing modern energy services to everyone by 2030. A publicprivate partnership-driven business model, with entrepreneurship at the core, is developed with innovative institutional, financing and pricing mechanisms for diffusion of energy services. This approach facilitates largescale dissemination of energy efficient and renewable technologies like smallscale biogas/biofuel plants, and solar water heating systems to provide clean, safe, reliable and sustainable energy to rural households and urban poor. It is expected to integrate the processes of market transformation and entrepreneurship development involving government, NGOs, financial institutions and community groups as stakeholders.