The off-grid electricity market in India is huge, with more than 300 million people living without direct access to electricity. But with such a large market, how do enterprises decide upon which small geographical area to focus on? In our experience, a matrix of choices determines where enterprises choose to work. Some pick areas where they have strong family ties. Some are directed to areas designated as un-electrified. Some entrepreneurs focus on the poorest areas to create impact.
We advocate a strong analytical approach to choosing the geographical area of operation. We believe enterprises should focus on relatively small areas at the district level, where there is a clear demand and capacity to invest in decentralized renewable energy solutions. In our micro-markets analysis based on 2011 census data, we have identified these target geographical markets/districts, and come up with some tips...