Definition:

• DREs are small-scale energy generation units (structure), at or near the point of use, where the users are the producers—whether individuals, small businesses and/or local communities. These production units could be stand-alone or could be connected to nearby others through a network to share, i.e., to share the energy surplus. 
• These technologies, such as solar pumps, dryers, and  micro-grids, are creating new job opportunities and  improving productivity. 
• For instance, solar-powered  dryers are helping farmers in Maharashtra preserve  horticultural produce, reducing post-harvest losses and  increasing income. 
  • Eg: Shivraj Singh Chouhan from Uttar  Pradesh has seen his monthly income rise to INR 5  lakh through the use of solar dryers for drying flowers,  sourced from over 100 farmers.  

Challenges in DRE sector:

• Grid Integration and Flexibility: One of the  significant challenges is integrating variable renewable  energy (VRE) like solar and wind into the existing  power grid. 
  • The Central Electricity Authority projects that by  2030, India will have 450 GW of renewable capacity,  necessitating advanced grid management and flexibility  solutions.  
• Financial Barriers: Although the cost of renewable technologies  has decreased, initial capital investments are still high.  
  • Programs like the Production Linked Incentive (PLI)  scheme and the initiatives by the Indian Renewable  Energy Development Agency (IREDA) provide some  relief, but more needs to be done to ensure accessible  and affordable financing.  
• Technological and Infrastructure Gaps: The deployment  of decentralised renewable energy (DRE) solutions  like mini-grids is hampered by the absence of robust local infrastructure in rural areas. 
  • Additionally, there is a need for  standardised and high-quality technology to ensure  reliability and efficiency.  
• Policy and Regulatory Hurdles: Although there  are numerous policies in place to support renewable  energy, inconsistencies, and regulatory hurdles can  impede progress. 
  • For example, Renewable Purchase  Obligations (RPOs) mandate increasing percentages of  renewable energy but require clearer implementation  guidelines and enforcement mechanisms across states. 

Opportunities  in DRE sector:

• Advancements in Energy Storage: Energy storage  technologies, particularly battery storage, are rapidly  advancing and becoming more cost-effective. The  integration of battery storage can mitigate the variability  of renewable sources, ensuring a stable and reliable  power supply.  
• Expansion of DRE Solutions: Decentralised  renewable energy solutions offer a viable path to  electrify remote rural areas. Mini-grids and solar home  systems can provide reliable electricity to communities  not connected to the national grid. 
• Green Hydrogen: Green hydrogen presents a  significant opportunity for India to diversify its energy  portfolio. Produced using renewable energy, green  hydrogen can be used in various sectors, including  transportation and industrial processes. 
• Policy and Institutional Support: Initiatives  like the National Solar Mission and PM-KUSUM are  crucial for scaling up renewable energy projects. The  government’s focus on creating a skilled workforce for  green jobs and providing financial incentives through  schemes like the PLI is also essential for long-term  growth.  
• International Collaboration: India’s leadership  in international forums like the International  Renewable Energy Agency (IRENA) and the G20 Energy Transitions Working Group enhances its  ability to attract global investments and adopt best  practices. 
  • Collaborative efforts can help overcome  technical and financial barriers, accelerating the  renewable energy transition.  

Conclusion:

• While the path to a fully renewable energy powered rural India is fraught with challenges, the  opportunities for innovation, economic growth, and  sustainable development are immense. 
• By addressing  these challenges with strategic policies, technological  advancements, and international cooperation, India can  pave the way for a resilient and sustainable energy future.