prasad1
Active member
That's why there are roughly 80 million households still without power. Yet, Modi's pledge is different in one important way -- the type of energy he has chosen for the job.
So, just how ambitious is this promise, and can Modi really deliver? To answer those questions, we need look no further than neighboring Bangladesh -- a hot bed for off-grid solar installations.
Bangladesh is home to a whopping 2.8 million off-grid solar home systems, and every single month, the country pumps out 80,000 new installations. That's thanks to the wildly successful Infrastructure Development Company Limited (IDCOL) program, a model India would be wise to replicate. IDCOL has led to surging 60.86 percent compound annual growth rates (CAGR) over the past decade, increasing the number of solar home systems installed from 25,000 in 2003 to 2.9 million in 2013. That's a CAGR investors here in the U.S. would drool over.
Let's compare that growth to what Modi needs in order to deliver on his pledge. According to the 2011 Indian census, there were approximately one million households using solar. In order to increase from that small base of one million to total access for 80 million people in five years, Modi needs to increase the solar sector at a 71.07 percent CAGR. While that seems like a steep demand, judging by Bangladesh's success, it is eminently doable. Especially if you compare it to the 95 percent growth rates the World Bank's Lighting Africa program has clocked for sub-Saharan Africa.
In sum, Modi's goal is not only achievable, it's already working in both Bangladesh and Africa. If he is able to stay on track, every Indian household may be seeing a brighter solar future very soon.
Follow Justin Guay on Twitter: www.twitter.com/Guay_JG
Modi's Solar Lining? | Justin Guay
So, just how ambitious is this promise, and can Modi really deliver? To answer those questions, we need look no further than neighboring Bangladesh -- a hot bed for off-grid solar installations.
Bangladesh is home to a whopping 2.8 million off-grid solar home systems, and every single month, the country pumps out 80,000 new installations. That's thanks to the wildly successful Infrastructure Development Company Limited (IDCOL) program, a model India would be wise to replicate. IDCOL has led to surging 60.86 percent compound annual growth rates (CAGR) over the past decade, increasing the number of solar home systems installed from 25,000 in 2003 to 2.9 million in 2013. That's a CAGR investors here in the U.S. would drool over.
Let's compare that growth to what Modi needs in order to deliver on his pledge. According to the 2011 Indian census, there were approximately one million households using solar. In order to increase from that small base of one million to total access for 80 million people in five years, Modi needs to increase the solar sector at a 71.07 percent CAGR. While that seems like a steep demand, judging by Bangladesh's success, it is eminently doable. Especially if you compare it to the 95 percent growth rates the World Bank's Lighting Africa program has clocked for sub-Saharan Africa.
In sum, Modi's goal is not only achievable, it's already working in both Bangladesh and Africa. If he is able to stay on track, every Indian household may be seeing a brighter solar future very soon.
Follow Justin Guay on Twitter: www.twitter.com/Guay_JG
Modi's Solar Lining? | Justin Guay
