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"Microgrids are the answer for the plan

  Aug 31, 2016

"Microgrids are the answer for the plan goal of round-the-clock power for all by 2022."Explain.

Microgrid is a small standalone system connected to solar panels which can supply power to about 100 households. In this model, a customer registers with the microgrid owner with a monthly subscription, and the service provider provides him solar power for two lights, a fan and cell phone charging socket.
A customer would spend Rs 100. It is cheaper than kerosene and has been growing rapidly.
A microgrid costs under Rs 60,000 to set up and the project costs get recovered in three years -- including maintenance, upgrades and other overheads. Households save money each month which helps ensure payments. These micro-economics are sound, low-risk and sustainable and are attractive for investors.It has to prospects that every village in India will soon be electrified, thanks to the solar microgrid revolution.
With such clear economics, more companies are looking at the sector. People in the industry see the business opportunity here now as there are hundreds of villages with no electricity and it doesn't make economic sense for the government to put up a grid" .
Firms say that while for the immediate term, lending from NABARD would help, to take this on a longer term, government support would be required in terms of giving service providers protection and status to function like a state electricity utility.
Micro grid holds the key to lighting and digitally connecting millions of lives. The Centre’s plan to supply electricity 24/7 to all parts of India in five years needs microgrids as a practical solution to provide electricity to off-grid and inaccessible areas.