A recent study has found the less well off in India could be a huge market for solar energy solutions.
"Power to the People: Investing in Clean Energy for the Base of the Pyramid in India" states that India’s rural Base of the Pyramid (BOP) consumers spend a massive US$4.86 billion per year on their energy needs.
Base of the Pyramid refers to the approximate 4 billion people globally who are impoverished and have limited or no access to essential products and services such as energy, clean water, and communications. People in this socio-economic group earn just US$1 to US$8 in purchasing power parity (PPP) per day.
India has world’s second largest population and is facing increasing strain on its somewhat patchwork energy infrastructure. In rural areas, expensive fossil fuels are often relied upon for power generation, cooking and lighting.
According to the World Resources Institute report, approximately 45 percent of India’s rural BoP households, roughly 400 million people, still did not have reliable access to electricity and relied on kerosene for lighting. Kerosene is not only expensive, it poses health threats, contributes to smog formation and greenhouse gas emissions.
Indian companies are recognising a major opportunity in providing rural BoP households with access to equipment such as solar lanterns, home solar energy systems and energy-efficient stoves.
India’s government is also supporting distributed clean power generation by means of community-based, self-sufficient biomass and solar power. The recently launched National Solar Mission aims for 20 gigawatts of solar power by 2022 and sets a specific goal of providing 20 million solar lighting systems to rural communities within the next dozen years.
The 74 page "Power to the People: Investing in Clean Energy for the Base of the Pyramid in India" report can be downloaded here (PDF).
