KARTIK WAHI. An Electricity Access Practitioner s perspective; lessons from the ground in India

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1 KARTIK WAHI An Electricity Access Practitioner s perspective; lessons from the ground in India

2 Over the past 6 years we ve established ourselves as a credible organization focusing on applications of Solar in Agriculture in India We setup solar powered pumps in rural India under several business models to improve access to water for several applications Our very large rural footprint (6000+) solar pump assets on the ground enables us to provide a whole host of allied products and services in rural markets

3 Over solar water pumps installed and serviced across India; massive on ground learnings

4 Solar Pumps for Irrigation

5 Solar Pumps for Drinking Water

6 Solar Pumps for Fisheries

7 How do we define ELECTRICITY ACCESS

8 How do we define ELECTRICITY ACCESS Source:

9 Household vs Productive End Use Applications

10 Under Mechanized Agriculture INDIA WEST As India and Africa move towards Mechanized Farming, the demand for Electricity in Agriculture will grow several folds! AFRICA

11 Solar Irrigation: Productive End Use of Energy Diesel pumps are being replaced by solar pumps Diesel Solar Farmer Benefit Savings on Diesel and increased area under irrigation Daytime irrigation is safer and entails lower cost of labour Cash crops can be grown through precise irrigation Farmers achieve payback in <48 months

12 Alternating Current (AC) Solar Pump Schematic DC Power AC Power AC Motor Driven Pump

13 Direct Current (DC) Solar Pump Schematic DC Power DC Power DC Motor Driven Pump

14 Governments Across the World are Rallying for Electricity Access via Solar Energy

15 Governments Across the World are Rallying for Electricity Access via Solar Energy Key Goals Collectively address key common challenges to the scaling up of solar energy in line with their needs Members take coordinated actions through Programmes and activities launched on a voluntary basis Focus on solar finance, solar technologies, innovation, research and development, and capacity building Development of standards, specifications and test protocols for solar energy systems

16 Even the Consumer doesn t want to wait for the Grid to reach him either Off-Grid Solar solutions are becoming mainstream Customer doesn t want to wait for the grid to reach him Waiting period for 3Phase electricity connections in India can be as high as 5-7 years Even if the grid reaches him, quantum of supply of electricity is still questionable It is not a question of affordability but investing in the right technology Cost of solar has massively dropped over the last few years

17 Off-Grid Solar will leapfrog Conventional Grid in India and Africa and the opportunity is HUGE!

18 But Execution is Key! Policy Makers Policy Level Intervention by governments is critical in new markets Intervention can be in the form of Subsidies or facilitating capacity building to reach scale Efficiency of government administered programs is debatable India is a classic example: Subsidy glut Demand Distortion Competing Subsidy programs Initiatives such as the International Solar Alliance are being taken up to promote exchange of learnings across member countries

19 But Execution is Key! Last Mile Operations/Capabilities System components/products (Solar modules, pumps and Controllers) are commoditized Not enough credible downstream companies Large companies are mostly absent in this space Remote and dispersed customers require solid backbone for operations Cost of Customer Acquisition is High and creating appropriate channels is critical Solar is maintenance free is a Myth

20 Business Model Innovation Solar Irrigation As A Service (IAAS) Marginal Farmers Asset Sharing Higher CUF Faster Payback

21 Lack of Financing Asset class not well understood by lenders NATURE OF PURCHASE Capital Equipment Capital Equipment TICKET SIZE FINANCING USD 5k to 20k?? USD 6k to 30k Lease/EMI/ Asset financing Solar Pumps are unknown commodities for Banks and they are vary of creating financial products catering to this asset class as yet. This shall be critical for opening up the private markets.

22 Lack of Standards Varied Voltage Levels Hundreds of configurations Panel Size (Wp) Panel Voltage (Vmp) Array Voltage (Vmp) 1 HP HP HP HP HP With no clear guidelines/standards, every system integrator chooses their own sweet spot regarding electrical specifications esp. with regards to safety and protection This is leading to thousands of compromised configurations making their way to sites across India

23 Lack of Standards DC Arcing

24 Lack of Standards DC Arcing Industrial Grade VFD from ABB

25 Lack of Standards Behavioural Issues Underground Cabling done to prevent theft Farmers advised not to grow any crops directly under the solar pump On ground practice quite the contrary Translates to: Higher system failure rate Risk of electric shock Recurring costs Connections are often tampered with leading to DC Arcing that can further cause fires and collateral damage to equipment

26 Lack of Standards Behavioural Issues

27 Lessons from the Ground Electricity Access is a huge opportunity Yet most practitioners on the ground are young companies who have critical insights about the challenges with such systems but often are less heard! Case in Point for Africa to learn from the mistakes India made in promoting Electricity Access If implemented properly, it had massive socio-economic impact in India & Africa One needs to be cognizant of the fact that system shall be abused on the ground and hence standards need to be defined appropriately. Following standards are critical to be established immediately System efficiency Safety Permissible Losses Voltage & Frequency Temperature Measurement of all of above

28 THANK YOU!