Microgrids, which are decentralised electricity generation and distribution systems that primarily use renewable energy sources enhance electricity reliability in rural India, says Manoj Sinha - CEO HUSK Power Systems, in conversation with businessline’s Rishi Ranjan Kala, in this State of the Economy podcast. 

Sinha goes on to explain that these microgrids serve residential customers, MSMEs, and small factories, providing a critical solution to energy poverty in rural and remote areas of India and Nigeria. 

Sinha highlights that microgrids can provide high-quality, stable electricity and excellent customer service, addressing the two critical issues of reliability and quality. Additionally, microgrids can help balance the grid as more intermittent renewable energy sources are added, thereby contributing to a more stable and resilient energy system. 

The discussion also touches on the Indian government’s PM Kusum initiative, aimed at promoting solar energy for agriculture. Sinha noted that while PM Kusum has had some success, integrating isolated solar pumps and microgrids into the central grid could significantly enhance its impact. This integration would require new policies and technological innovations, such as artificial intelligence-powered virtual power plants, to manage decentralised energy resources efficiently. 

Reflecting on his experiences since establishing the first microgrid in Bihar in 2008, Sinha observed substantial progress in India’s energy landscape. However, he stressed that more needs to be done to achieve India’s net-zero targets. He called for systematic policy drives to reduce fossil fuel dependence and spur private capital and technology innovation. 

Host: Rishi Ranjan Kala; Producer: Amitha Rajkumar

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About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups