India has been found to be particularly fertile ground for experimentation with renewable energy initiatives. The latest version of Ernst & Young’s “Renewable Energy Country Attractiveness Index” reaffirms this fact, ranking India as the third most attractive market for renewable energy investment:
India’s rise to third overall … has been precipitated by excellent national and regional government support for both foreign and local investment in renewable technologies. Consequently, rapid growth is expected to continue in this market.
The report goes on to note that “installed renewables capacity in India – currently standing at 8GW – is now expected to double every five years, and is forecast to reach 20GW by 2012, twice the government’s target.”
One new venture in this space is Husk Power Systems, which aims to “provide power to millions of rural Indians in a financially sustainable, scalable, environmentally friendly, and profitable manner.” Starting with villages in Bihar, HPS has developed a viable business model for generating power from agricultural residue, namely rice husks. How does the system work?
The organization has developed a distributed power supply and distribution system that uses 35-100kW “mini power- plants” in villages of 200-500 households within the Indian “Rice Belt” and offers electricity as a pay-for-use service.
In addition to power generation, rice husks have additional income-generation utility, as 1) the ash produced by burning the rice husks can be “converted into a valuable ingredient for cement production,” and 2) the rice husk generators can potentially be paid for reducing carbon emissions through a trading program established by the Kyoto Protocol. The result, then, according to innovators Ransler and Sinha, is the multi-fold:
Even with conservative electricity consumption, revenue from the three sources would allow each rice husk generator to break even in about two and a half years, and it would reduce carbon dioxide emissions by 200 tons per year, per village. Furthermore, explained Ransler, a lack of reliable electricity is one of the biggest obstacles to small business growth in rural India, so providing a village with rice-husk power can be the enabler of a dozen other small business ventures.
What can we expect from the future? Currently, there are 2 villages in Bihar operating on the HPS model, with plans to expand to 20 villages in 2008, 100 in 2009, and 2500 by 2013.
Source: Rural Development of India