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Local community as shareholders in clean energy projects: Innovative strategy for accelerating renewable energy deployment in India


  • Thapar, Sapan
  • Sharma, Seema
  • Verma, Ashu


The government of India is promoting renewable energy sector with an ambitious target of 175 GW capacity, to be achieved by 2022. The reasons for this energy transition from fossils to renewable energy technologies include facilitating energy access, promoting cleaner forms of energy and enhancing energy security. The huge capacity shall require about 200,000 ha of land. However, land procurement has been identified as a key impediment in accelerating the growth of renewable energy sector in India. This presents an exciting business opportunity towards setting up community energy projects under community mode with the local people as shareholders. Community members can provide their land for setting up renewable energy projects as well as support in project development activities in lieu of getting upto 15% equity participation. This shall provide them with a constant source of income, estimated at over US $ 4000 per hectare per annum, besides facilitating energy access in villages. Quicker possession of land shall expedite project execution and the reduced capital expenditure shall decrease the cost of energy generation by upto 6%. Policy makers in emerging economies like India can pilot the proposed model in upcoming solar parks and wind farms.

Suggested Citation

  • Thapar, Sapan & Sharma, Seema & Verma, Ashu, 2017. "Local community as shareholders in clean energy projects: Innovative strategy for accelerating renewable energy deployment in India," Renewable Energy, Elsevier, vol. 101(C), pages 873-885.
  • Handle: RePEc:eee:renene:v:101:y:2017:i:c:p:873-885
    DOI: 10.1016/j.renene.2016.09.048

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    References listed on IDEAS

    1. Ejdemo, Thomas & Söderholm, Patrik, 2015. "Wind power, regional development and benefit-sharing: The case of Northern Sweden," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 476-485.
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    4. Okkonen, Lasse & Lehtonen, Olli, 2016. "Socio-economic impacts of community wind power projects in Northern Scotland," Renewable Energy, Elsevier, vol. 85(C), pages 826-833.
    5. Euan Phimister & Deborah Roberts, 2012. "The Role of Ownership in Determining the Rural Economic Benefits of On-shore Wind Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 331-360, June.
    6. Walker, Gordon, 2008. "What are the barriers and incentives for community-owned means of energy production and use?," Energy Policy, Elsevier, vol. 36(12), pages 4401-4405, December.
    7. Slee, Bill, 2015. "Is there a case for community-based equity participation in Scottish on-shore wind energy production? Gaps in evidence and research needs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 540-549.
    8. Fast, Stewart & Mabee, Warren, 2015. "Place-making and trust-building: The influence of policy on host community responses to wind farms," Energy Policy, Elsevier, vol. 81(C), pages 27-37.
    9. Toke, David & Breukers, Sylvia & Wolsink, Maarten, 2008. "Wind power deployment outcomes: How can we account for the differences?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(4), pages 1129-1147, May.
    10. Yildiz, Özgür, 2014. "Financing renewable energy infrastructures via financial citizen participation – The case of Germany," Renewable Energy, Elsevier, vol. 68(C), pages 677-685.
    11. S. Mahendra Dev, 2012. "Small farmers in India: Challenges and opportunities," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-014, Indira Gandhi Institute of Development Research, Mumbai, India.
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    1. repec:eee:rensus:v:108:y:2019:i:c:p:194-208 is not listed on IDEAS
    2. repec:eee:renene:v:121:y:2018:i:c:p:412-419 is not listed on IDEAS
    3. repec:gam:jeners:v:11:y:2018:i:12:p:3523-:d:191396 is not listed on IDEAS


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