Why decentralised renewable energy is the need of the hour for a just energy transition – EQ
In Short : Decentralized renewable energy (DRE) is vital for a just energy transition, enhancing accessibility and empowering communities to control their energy resources. DRE improves resilience against disruptions, reduces emissions, and fosters economic opportunities through job creation. It promotes innovation and supports global climate goals while ensuring marginalized groups have access to clean energy, driving a fair and inclusive energy landscape.
In Detail : As energy transition gathers pace, renewable energy (RE) deployment is growing rapidly. COP28 — the United Nations Climate Change Conference held in Dubai in 2023 — provided a strong impetus for RE capacity expansion with nearly 200 countries announcing a collective pledge to triple the pace of green energy capacity by the end of this decade with a global target of 11,000 gigawatts (GW) by 2030.
However, a successful energy transition cannot be achieved by simply installing solar panels or wind turbines in huge gigawatt-scale farms. As per IEA estimates, more than 700 million lack electricity access most of them in sub-Saharan Africa and Asia. It is important to ensure a just transition, with all citizens enjoying access to affordable and clean energy. The journey towards Net Zero must be people-centric and inclusive. The fight against climate change should not neglect other sustainable development goals which are equally important.
Power to People:
Transformational role of Distributed Renewable Energy (DRE)
Decentralised Renewable Energy (DRE) systems can play a critical role in ensuring a people centered clean energy transition. DRE can cost effectively provide energy to multiple sectors such as agriculture, textiles, food processing, storage, and more. It is particularly suitable for standalone deployment in rural and remote regions without grid connectivity, and addressing the trilemma of energy access, energy security and energy transition.
The recently launched “PM Surya Ghar– Muft Bijli Yojana” policy in India promoting residential rooftop solar with a target to solarize 10 million households is an excellent example of how a DRE policy can meet multiple objectives of employment generation, poverty alleviation, affordable energy access, clean energy transition and economic growth.
Empowerment through Employment
Besides affordable energy, DRE acts as a major source of employment generation and skilling which is of great importance to developing countries. Compared to conventional power generation, DRE creates more jobs across the supply chain. It can provide alternative livelihood opportunities for workers displaced from the transition away from fossil fuels.
The Indian government’s flagship distributed renewable scheme for rural areas “PM KUSUM” alone is expected to generate employment opportunities equivalent to 7,55,000 job-years for skilled and unskilled workers.
Uplifting the poor through an equitable socio-economic development
DRE equipment for livelihood applications can make a major positive socioeconomic impact. The Solar Home Systems (SHS) program in Bangladesh is one of the most successful off-grid solar projects globally providing electrification to millions of rural households. Besides, residential electrification, DRE applications such as solar pumps, solar cold storage, solar powered looms, and solar dryers have played a positive role in the creation of livelihoods of both urban and rural communities.
Women and marginalised communities stand to benefit greatly from the improved access to energy. While most DRE applications are targeted for individual usage, its impact is far reaching and extends to communities as well. There are successful examples where communities have taken up joint ownership of a larger DRE project such as mini grids to provide scale and reduce cost for individual members.
The path ahead
DRE has a significant potential to provide clean energy access and reduce fossil fuel consumption while driving socioeconomic benefits. A clear policy and regulatory framework needs to be established which could signal government commitment and mobilise private investments, suppliers, and other stakeholders.
New and innovative financing products should be developed and made available through grassroots organisations, NGOs, and banks. The government can develop a framework for interested investors to mobilise patient capital for DRE applications which can be routed through international organisations.
For realising the market potential, a bottom-up market assessment can be carried out to map the most suitable DRE technologies like Micro-Hydro Power, Biogas, Solar etc., which can be effectively scaled up. This can effectively feed into the planning strategies for future programs. Finally, gender mainstreaming in DRE sector needs to be promoted through awareness creation, certification programs and capacity building initiatives.
