India has enormous potential for decentralised energy systems

Regions like Gonda and Sitapur in Uttar Pradesh or Sundarbans in West Bengal have already seen the advantages of microgrids in providing consistent power to underserved communities.

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Milind Solanki

Vice President Ernst & Young

Decentralised energy systems (DES) have immense potential to reshape India's energy landscape, yet they remain underexplored. Historically, the adoption of DES in India has been driven more by policies, reforms, and regulations than by large-scale implementation. While localised efforts in hamlets and areas led by proactive bureaucrats have progressed, widespread adoption is still lacking.

To understand the significance of DES, we must first define it. These systems involve small-scale, localised energy generation setups such as solar rooftops, microgrids, small wind turbines, biomass generators or even decentralised green hydrogen production.

Benefits of decentralised energy systems The Indian government has taken steps to promote decentralised energy systems. Solar rooftops, for example, have been a major focus, with an estimated potential of 800 GW nationwide. However, out of the 40 GW target set for 2026, only about 12 GW has been achieved. Initiatives like the National Greenhouse Programme with a dedicated budget of *200 crore and financial assistance mechanisms have been launched to accelerate adoption. Additionally, schemes such as the National Bio-Energy Plan aim to encourage further exploration of decentralised energy systems.