A new study finds that solar-based distributed renewable energy (DRE) systems can supply electricity in rural India at lower cost than conventional grid power when projects are tailored to local demand, storage, and grid conditions. It recommends Village Energy Plans (VEPs) as the foundation for scaling reliable, cost-effective DRE deployment through integrated planning and stronger utility participation.
Solar-based distributed renewable energy (DRE) systems can generate electricity in rural India at a lower cost than conventional grid supply, according to a new study. The report says careful planning around local demand, storage, grid conditions, financing, and long-term operations is needed to realize those savings.
A joint report by the International Institute for Sustainable Development (IISD) and Idam Infrastructure Advisory Pvt. Ltd., “Scaling Rural Distributed Renewable Energy in India: A Framework for Planning and Implementation,” says Village Energy Plans (VEPs), based on system modelling and field research, are essential for translating DRE’s cost advantage into reliable, scalable deployment. Drawing on modelling and evidence from operating DRE projects, the report finds that aligning renewable energy investments with village-level demand, grid conditions, storage requirements, and financing can improve project viability, reduce costs, and support wider deployment.
