It seems that India in general has become more optimistic and vibrant over the past year, and this appears to also hold true in the energy sector. The country has a massive need for energy, both to fuel growth as well as to electrify rural areas that are poorly served and account for almost half of the population.

A recent report by the Climate Group has examined the business and economic aspects of the distributed renewable generation market in India. The report reinforces that the pieces are coming into place – ambitious government targets, huge unmet demand, and numerous market participants and technologies. However, thin margins and constraints on access to capital are holding back growth and more robust business models need to emerge for companies to truly scale.  Storage technologies will need to play an important enabling and supporting role as well. The report focuses on smaller scale systems, including individual solar home systems, but the issues and potential also holds true for larger systems and microgrids of >100 kW. It is clear that renewable microgrids and distributed generation will be tremendously beneficial for the country by supporting growth though sustainable infrastructure as well as empowering local communities.  It is critical for international institutions and investors to get active in this sector and the rewards will be great!