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Rural electrification in India: Galilee Basin coal versus decentralised renewable energy micro grids

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  • Molyneaux, Lynette
  • Wagner, Liam
  • Foster, John

Abstract

The state of Bihar in India has approximately 75 million people with no access to electricity. The government of India has pursued a policy of rural electrification through the provision of centralised coal-fired power which has been unable to resolve the low levels of electrification. Coal supply woes in India have led Indian companies to pursue new coal mines in Australia's Galilee Basin. The costs of these mining ventures will be high due to the mining infrastructure required and long transport distances to rural India. A high level analysis of mining, transport and power station investment to meet rural demand in Bihar shows that the absolute investment requirement using coal, especially coal sourced from Australia, as an expensive option. Pursuing electrification through village level, renewable energy micro-systems provides more flexibility. Pollution costs associated with coal-fired generation, employment benefits associated with many village implementations and a rural load unsupported by industry load, show a benefit associated with decentralised, renewable energy electrification.

Suggested Citation

  • Molyneaux, Lynette & Wagner, Liam & Foster, John, 2016. "Rural electrification in India: Galilee Basin coal versus decentralised renewable energy micro grids," Renewable Energy, Elsevier, vol. 89(C), pages 422-436.
  • Handle: RePEc:eee:renene:v:89:y:2016:i:c:p:422-436
    DOI: 10.1016/j.renene.2015.12.002
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    Cited by:

    1. Jeslin Drusila Nesamalar, J. & Venkatesh, P. & Charles Raja, S., 2017. "The drive of renewable energy in Tamilnadu: Status, barriers and future prospect," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 115-124.
    2. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2017. "Financial attractiveness of decentralized renewable energy systems – A case of the central Himalayan state of Uttarakhand in India," Renewable Energy, Elsevier, vol. 101(C), pages 973-991.
    3. repec:eee:juipol:v:51:y:2018:i:c:p:41-50 is not listed on IDEAS
    4. repec:gam:jeners:v:10:y:2017:i:8:p:1171-:d:107687 is not listed on IDEAS

    More about this item

    Keywords

    Rural electrification; Renewable energy; Distributed energy;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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