At a round table with media persons, Rockefeller Foundation president Judith Robin said “Every step towards increasing rural access to modern energy sources can help India reach its full economic potential. We believe the provision of power will open up greater opportunities of economic development in rural areas – paving the way for a more inclusive economy. The ‘smart power’ model launched on Wednesday is a unique market based innovation that can support India as it achieves its ambitious electrification goals.” The programme is backed by a commitment of US$75 million (nearly Rs.500 crore) from the Rockefeller Foundation.

Delhi-headquartered Smart Power India CEO Jaideep Mukherji said the organisation will partner with energy service companies (ESCOs), telecom tower operators, investors, NGOs and government agencies to provide the mostly ungrided or poorly linked villages with the access to reliable and renewable energy from green sources within the stipulated period.

Even villages classified as electrified may have as few as 10 per cent of households connected to the national grid. Even when a connection to the national grid is available, electricity may often be erratic, making it unviable for enterprise or agricultural use, Mukherji pointed out.

The Smart Power model is an innovative way to deliver clean energy via decentralized mini-grids. The mini-grids provide market opportunities to investors and will be able to integrate into the national grid system which the government is extending. Under the Smart Power model, an anchor tenant, for example a telecom company operating local cell towers, would serve as the base demand for power and make it profitable for an Energy Service Company Operator (ESCO) to build a power plant which is large enough to serve both lighting and productive loads. With this structure in place, the ESCO is willing to go into rural communities and is able to sell power to local businesses and households – thus meeting the need for various uses of power – lighting, productive loads (such as carpenters, agricultural loads – irrigation, grinding mills) and other business needs benefitting new and future local businesses and homes.

The provision of power to the selected villages is expected to open up significant opportunities for economic development and improving livelihoods. Those affected will see improved access to education, opportunities to trade and do business, access to key information services and improved healthcare services – all spurred on by access to reliable energy.

Smart Power India, a new Indian led organisation based in Delhi, will be The Rockefeller Foundation’s key partner in working with Energy Service Companies, private sector partners, investors, NGOs, and the Indian government to reach the goal of bringing electricity to underserved villages in India. Smart Power India, will provide support for the entire ecosystem needed for mini-grids to be successful, sustainable, and scalable. Prior to joining Smart Power India, CEO Jaideep Mukherji spent two and a half years with d.light, a local social enterprise that works to bring affordable solar lighting devices to people in the developing world. Mr Mukherji has a proven track record and over 30 years of experience in innovation and market development. (IPA)