EMPOWERING THE BOTTOM OF THE PYRAMID : GOVERNMENT, BUSINESS, AND SOLAR POWER IN INDIA

Abstract

This paper considers the most effective means of bringing electricity to India's Bottom of the Pyramid (BOP, i.e. rural poor) market. Six forms of renewable energy are analyzed to determine the best technology by which to bring electricity to this market. Ten government initiatives, two current businesses and five business strategies are evaluated to determine the most effective means of bringing electricity to the rural poor. This analysis of energy, government, businesses, and business strategy yields two propositions: (1) Energy poverty in rural India is not caused by a lack of energy potential, but a lack of technology to harness this potential. Widespread adoption of solar energy technology will harness India's greatest resource: the sun. (2) The Indian government is inefficient at electrifying rural villages. Businesses have the potential to efficiently electrify rural villages and profit in the BOP market if they adapt technology specifically for the BOP market, localize distribution, forge partnerships, and view members of the BOP as consumers as well as producers. This paper offers recommendations to the government and businesses as they move forward.