Electricity plays an important and central role in improving the quality of life and alleviating poverty in rural areas. In 1947, when India attained independence, barely 1,000 villages had electricity. By 2005, though 85% of villages were electrified, only 45% of rural households had access to electricity. Even those with access to electricity do not always have a reliable supply. Urban and industrial consumers suffer from unreliable supply of electricity.

Protecting environmental resources is another challenge in India. Currently much of the electricity produced comes from high-ash coal, which generates global and local air pollution. Good electrical service is linked to effective water use. Over-pumping by farmers, who lack viable alternatives or good incentives to conserve the natural resource, is causing a severe groundwater shortage.

For better access to clean energy and water, USAID works with Indian partners to increase viability in the power sector, conserve resources, and promote clean technologies and renewable energy. USAID facilitates sharing of energy and environment best practices between the U.S. and India and among South Asian countries.

Key Accomplishments

Access to Energy and Water

• Four demonstration models of excellence in electricity distribution created in partnership with power utilities in four states.
• Executive Business Management Degree Program in Power Distribution institutionalized at one of the top business schools in India. The project increases professional skills of change agents working in the sector – ensuring viability of the power sector.
• Best practices in rural electrification propagated through a collaborative partnership between the U.S. Rural Utilities Service and India’s Rural Electrification Corporation.
• Over ten thousand engineers and managers are now trained in electricity distribution in technical and management best practices to reduce losses in the power sector.
• USAID supported the development of an innovative business model for agricultural demand side management projects aimed at reducing the water energy consumption in groundwater irrigation.
• USAID supported a pilot project on waste water recycling and reuse developed to promote large scale non-potable industrial applications.

Mitigating Global Climate Change

• 13 million tons of carbon dioxide emissions avoided through efficiency improvements in thermal power plants, renewable energy, clean coal technology and demand side management.

Clean Technologies and Renewable Energy

• State-of-the-art environmental management systems (ISO 14000 compliance) established – a “green business” certification that is now actively pursued by Indian industry.
• The first gas fired environment friendly and energy efficient cupola furnace was successfully commissioned for the foundry industry.
• A venture capital fund initiated by Indian financial institutions to support clean technology activities in the private marketplace. ICICI Bank committed $25 million to the “green” fund.
• The Indian Parliament passed the Energy Conservation Act, a bill developed by the Bureau of Energy Efficiency in partnership with USAID which supports the conservation and efficient use of energy.
• Energy efficient and environmentally sound building practices were utilized in the creation of the Green Business Center, the first building to receive the “greenest building in the world” award outside of the United States. Over 60 Indian buildings are now on track to achieve “green” certification.
• State-level Energy Conservation Plan developed and implemented in Maharashtra state, and under development in Punjab and Gujarat states.
• National Energy Conservation Building Codes developed for each climatic zone in the country and launched by Government of India.

For the detailed strategy in this program area click here.

The USAID South Asia Regional Initiative for Energy (SARI/Energy) works to increase regional energy security among the eight countries of the region which include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. To learn more about SARI/Energy click here.