Page 7 - Market Creation for Clean Energy Access - Insights from Jeevika-TERI partnership in Bihar
P. 7
INTRODUCTION
Energy Access and Poverty underdeveloped and poor states. Although the
electricity grid has reached a large part of the
Affordable energy is fundamental to human welfare country, electricity supply in Bihar is still unreliable.
and central to reduction of absolute poverty. Less than 20 per cent of the state’s population
Access to reliable and sustainable energy service uses grid electricity as their primary source of
is an essential element to facilitate reduction in lighting forcing more than 80 per cent of Bihar’s
poverty and achievement of the larger goal of population to use kerosene as their primary source
sustainable development. of lighting (Census of India 2011). The impediments
to electricity access in the state include poor paying
A startling statistic released by the Oxford capacities, inadequate grid infrastructure, high
Poverty and Human Development Initiative in 2015 transmission and distribution losses, relatively lower
states that of the 1.6 billion people living under electricity generation capacities, and poor financial
multidimensional poverty across the world, nearly health of the utilities (Pargal and Banerjee 2014;
440 million dwell in eight Indian states alone, which World Bank 2015).
bafflingly is equal to the number of poor in 25 African
countries (OPHI 2015; Sonwalkar 2015). A large Owing to this crippling and alarming situation,
chunk of this population, nearly 1.3 billion or Bihar garnered immense focus from the Central
80 per cent, also suffers from lack of access to clean government, donor agencies, and other multilateral
energy services to fulfill basic needs, such as lighting and bilateral aid to alleviate the condition of its
and cooking. India alone is home to over 350 million people. Several grant- and subsidy-linked models
people who lack access to electricity and over were introduced as channels to deliver solutions
700 million people rely on traditional burning of that addressed electricity deficiencies in the region.
solid biomass for cooking (IEA 2013). In recent years, donors shifted focus towards
The co-relation between the lack of access
to adequate and affordable energy services and
poverty is evident. People who lack access to clean
and affordable energy are trapped in a cycle of
deprivation and lower incomes (GEA 2012). The poor
spend their limited disposable incomes on unhealthy
forms of energy, such as kerosene wick lamps for
basic lighting. Also, people living on less than
USD 2 per day often fail to afford initial electricity
costs or the cost for purchasing efficient electrical
devices (Practical Action 2015). Lack of modern
energy service affects agricultural productivity,
income generation opportunities, health, and
the overall quality of life which together restrict
the poor from moving out of the poverty trap. In
addition, use of poor energy sources for basic energy
access adds to the environmental degradation. This
implies energy poverty has social, economic, and
environmental implications. Hence, a pragmatic
approach for enabling the poor people’s access to
clean energy is vital.
Bihar and the Evolving
Energy Market
In India, the state of Bihar has earned itself the
distinction of being one of the most consistently
LaBL Publication 7
Energy Access and Poverty underdeveloped and poor states. Although the
electricity grid has reached a large part of the
Affordable energy is fundamental to human welfare country, electricity supply in Bihar is still unreliable.
and central to reduction of absolute poverty. Less than 20 per cent of the state’s population
Access to reliable and sustainable energy service uses grid electricity as their primary source of
is an essential element to facilitate reduction in lighting forcing more than 80 per cent of Bihar’s
poverty and achievement of the larger goal of population to use kerosene as their primary source
sustainable development. of lighting (Census of India 2011). The impediments
to electricity access in the state include poor paying
A startling statistic released by the Oxford capacities, inadequate grid infrastructure, high
Poverty and Human Development Initiative in 2015 transmission and distribution losses, relatively lower
states that of the 1.6 billion people living under electricity generation capacities, and poor financial
multidimensional poverty across the world, nearly health of the utilities (Pargal and Banerjee 2014;
440 million dwell in eight Indian states alone, which World Bank 2015).
bafflingly is equal to the number of poor in 25 African
countries (OPHI 2015; Sonwalkar 2015). A large Owing to this crippling and alarming situation,
chunk of this population, nearly 1.3 billion or Bihar garnered immense focus from the Central
80 per cent, also suffers from lack of access to clean government, donor agencies, and other multilateral
energy services to fulfill basic needs, such as lighting and bilateral aid to alleviate the condition of its
and cooking. India alone is home to over 350 million people. Several grant- and subsidy-linked models
people who lack access to electricity and over were introduced as channels to deliver solutions
700 million people rely on traditional burning of that addressed electricity deficiencies in the region.
solid biomass for cooking (IEA 2013). In recent years, donors shifted focus towards
The co-relation between the lack of access
to adequate and affordable energy services and
poverty is evident. People who lack access to clean
and affordable energy are trapped in a cycle of
deprivation and lower incomes (GEA 2012). The poor
spend their limited disposable incomes on unhealthy
forms of energy, such as kerosene wick lamps for
basic lighting. Also, people living on less than
USD 2 per day often fail to afford initial electricity
costs or the cost for purchasing efficient electrical
devices (Practical Action 2015). Lack of modern
energy service affects agricultural productivity,
income generation opportunities, health, and
the overall quality of life which together restrict
the poor from moving out of the poverty trap. In
addition, use of poor energy sources for basic energy
access adds to the environmental degradation. This
implies energy poverty has social, economic, and
environmental implications. Hence, a pragmatic
approach for enabling the poor people’s access to
clean energy is vital.
Bihar and the Evolving
Energy Market
In India, the state of Bihar has earned itself the
distinction of being one of the most consistently
LaBL Publication 7
