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Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design
The document examines the 'viability gap' in mini-grid business models, where high capital costs and low-revenue customer bases make private investment challenging. It outlines various retail tariff approaches—ranging from uniform national tariffs to value-based pricing—and details subsidy structures, emphasizing output-based capital subsidies for distribution. The guide provides specific country examples from Africa and Asia and offers management considerations to reduce policy uncertainty and administrative overhead for developers.
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Document type: Guide
Developing a roadmap to a flexible, low‐carbon Indian electricity system: interim findings
India can integrate 390GW of wind and solar generation by 2030 at a lower total system cost than its current trajectory by increasing the flexibility of electricity supply and demand. The report identifies four primary flexibility needs: operating reserves, ramping, daily balancing, and seasonal balancing, all of which will grow as renewable energy penetration increases. A 'balanced portfolio' combining demand-side management, energy storage, and powerplant flexibility is found to be the most cost-effective approach, reducing energy waste by 82% to 97%, total system costs by 5% to 8%, and carbon emissions by 8% to 12% compared to a thermal-only approach. Regional analysis reveals that states like Tamil Nadu and Karnataka will face acute seasonal and ramping challenges, while Uttar Pradesh could act as a flexibility exporter due to its industrial base. The report concludes that urgent action on data, market design, and infrastructure is required to unlock these flexibility resources.
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Document type: Report
India Energy Subsidy
The document outlines proposed amendments to India's Electricity Act 2003 to introduce direct benefit transfers for subsidies and promote renewable energy. It notes a government ambition to increase its renewable energy target to 225 GW by 2022, though external analysts are less optimistic. The report highlights a rising fiscal burden from oil subsidies, potentially reaching USD 7.4 billion in FY2019, and details significant financial stress in the power sector. Additionally, it covers the expansion of LPG connections for poor women and the transition of several states to become kerosene-free.
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Document type: Briefing
Kerosene to Solar PV Subsidy Swap: The business case for redirecting subsidy expenditure from kerosene to off-grid solar
The document proposes redirecting government expenditure from kerosene subsidies to off-grid solar PV products to support India's goal of universal household electrification. It argues that kerosene subsidies are inefficient and cause negative health impacts, while solar power offers a reliable replacement. The paper evaluates available pico solar PV products, existing business models, and the suitability of Uttar Pradesh and Odisha for pilot studies to assess the impact of reducing kerosene consumption in favor of solar energy.
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Document type: Report
Kerosene to Solar PV Subsidy Swap
The report argues that India can accelerate universal household electrification by redirecting kerosene subsidies toward pico solar PV products. It identifies a surfeit of market-ready, certified solar lanterns that can replace kerosene lamps at a lower or equal cost. Analysis of Uttar Pradesh and Odisha suggests that while Odisha presents a strong market scenario due to high kerosene dependence, challenges include the use of kerosene for cooking and government opposition to quota reductions. In Uttar Pradesh, the report notes that kerosene subsidies are often poorly targeted, with fuel being diverted for transport.
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Document type: Executive summary
Kerosene to Solar PV Subsidy Swap
The report argues that redirecting kerosene subsidies toward pico PV solar products can provide a cleaner, cost-effective lighting alternative for marginalized Indian households. It identifies a robust market of internationally verified products and diverse B2C business models, particularly those leveraging microfinance institutions (MFIs). While the swap is technically feasible, the report notes challenges such as the use of kerosene for cooking in Odisha and the prevalence of substandard, unverified products in Uttar Pradesh.
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Document type: Report
Electricity Sector Reform in Uttar Pradesh: Analysis of tariff adjustments and the Ujwal Discom Assurance Yojana Plan (UDAY)
The report analyzes the financial instability of public electricity distribution companies (discoms) in Uttar Pradesh, where a revenue gap of INR 21,486 crores was recorded in FY16. It investigates two primary mechanisms for improvement: the reform of end-user tariffs and the implementation of the Ujwal Discom Assurance Yojana (UDAY) scheme launched in 2015. The study utilizes a political economy approach, incorporating surveys from 1,917 households, 413 farmers, and 65 commercial and industrial consumers, alongside interviews with government and discom officials to assess progress against UDAY milestones and stakeholder perceptions of tariff changes.
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Document type: Report
Perceptions of Electricity Sector Reform in Uttar Pradesh
The report analyzes the financial instability of electricity distribution companies (discoms) in Uttar Pradesh, where a significant revenue gap of INR 21,486 crores existed in FY16. It examines consumer attitudes toward tariff hikes, revealing that while most expect increases, there is strong opposition to them unless linked to service improvements. The report also evaluates the UDAY scheme, finding that while it has reduced interest costs through bond issuance, progress on key operational milestones like smart metering and feeder segregation has been limited. Recommendations include improving rural metering, implementing targeted compensation for vulnerable users, and enhancing communication strategies to build public support for cost-reflective tariffs.
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Document type: Report
Working across scales: Learning from seven years of climate compatible development in Asia
The report analyzes ten CDKN initiatives in India, Indonesia, Nepal, and Pakistan to identify effective design pathways for scaling climate compatible development. It distinguishes between research-led, hybrid, and action-led pathways, concluding that longer-term, action-oriented approaches are most successful in embedding new practices across local, provincial, and national scales. The authors propose several design principles, including early action, adaptive management, and strategic knowledge brokering, to navigate the complex multi-level governance required for climate resilience and low-carbon transitions.
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Document type: Research paper
The Fight for Light: Improving Energy Access through Digital Payments
The report argues that digital payments are critical for achieving Sustainable Development Goal #7 (universal energy access) by reducing the high costs and risks associated with cash-based collections. It identifies three primary barriers: the financial unviability of grid extension in rural areas, high upfront costs for clean-energy assets, and a lack of private investment. The document proposes solutions such as bundling prepaid smart meters with digital payments, implementing pay-as-you-go (PAYGo) financing for solar home systems, and digitizing energy subsidies to reduce leakages. Case studies from South Africa, Uganda, Kenya, India, Bangladesh, and Ethiopia illustrate how these digital tools improve utility profitability, expand renewable energy reach, and enhance financial inclusion for low-income households.
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Document type: Case study
Climate and Development Outlook
The report details CDKN's work in India to integrate climate change adaptation and mitigation into development planning. Key initiatives include the use of multi-criteria decision analysis (MCDA) for energy and building sectors, the development of Heat Action Plans in cities like Ahmedabad, and the promotion of rural electrification through micro-franchising. The document emphasizes the importance of co-benefits, private sector engagement, and gender sensitivity in achieving resilient growth.
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Document type: Report
Kerosene Subsidies in India: The status quo, challenges and the emerging path to reform
The document analyzes the inefficiencies of India's Public Distribution System (PDS) for kerosene, noting high rates of leakage and poor targeting. It argues that current subsidies make solar lighting less cost-competitive for households, particularly for mid- and high-end systems. The authors recommend streamlining eligibility, phasing out subsidies in electrified areas, and redirecting funds toward a 'lighting subsidy' for solar solutions.
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Document type: Policy brief
Research from India and Kenya - FULL REPORT 1
The report evaluates how to communicate the link between anthropogenic climate change and extreme weather events, testing various phrasings for probability, frequency, intensity, and uncertainty. Findings indicate that while high-level decision makers often prefer technical percentages and 'probability' terms, the general public finds these confusing, preferring simpler terms like 'worse' or 'more often'. The study highlights significant translation challenges in Swahili and Hindi and recommends that attribution information be downscaled to high spatial resolutions and co-developed with local communication experts and trusted sources, such as national meteorological agencies.
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Document type: Report
Research from India and Kenya - EXECUTIVE SUMMARY
The document provides guidance on communicating extreme weather event attribution to different stakeholder groups in Kenya and India, focusing on phrasing for probability, frequency, intensity, and uncertainty, as well as the use of visual aids.
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Document type: Executive summary
Decarbonization of Indian Railways
The report assesses the decarbonization of Indian Railways (IR), the world's second largest railway network and India's largest electricity consumer. It identifies that transitioning to an electrified network is a prerequisite for decarbonization. The study compares eight pathways based on procurement (captive generation vs. purchasing), rate (accelerated by 2020 vs. normal by 2030), and technology (solar vs. solar-wind mix). Findings indicate that accelerated captive generation is the most cost-effective pathway for both traction and non-traction segments, offering savings of 32% and 61% respectively over business-as-usual scenarios. Implementation challenges include inconsistent state policies on net metering and open access, as well as the need for load balancing technologies like power banking and pumped hydro storage.
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Document type: Report
Access to Clean Energy (ACE) Fund for Off-grid Energy India
The proposal outlines a 25-year program to address financing gaps for off-grid energy (OGE) companies in India. It seeks US$31 million from the Green Climate Fund (GCF) to create a first-loss capital pool and provide technical assistance, complementing a US$100 million revolving credit line anchored by the Indian Renewable Energy Development Agency (IREDA). The facility aims to reduce the high perceived risk of OGE lending, lower interest rates for companies, and replace kerosene use with clean energy in underserved rural and urban areas.
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Document type: Report
Strengthening disaster risk management in India
The report reviews the SDMPs of Assam, Bihar, Gujarat, Odisha, and Uttarakhand, finding that while they are sophisticated in disaster response, they lack sufficient focus on risk reduction, socioeconomic vulnerability, and climate change integration. It recommends clarifying institutional roles, operationalising risk-reduction funds, and aligning state plans more closely with the Sendai Framework for Disaster Risk Reduction 2015–2030.
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Document type: Report
How do gender approaches improve climate compatible development? Lessons from India
The document argues that gender-sensitive approaches are essential for the sustainability and impact of climate resilience efforts in urban India, noting that urban vulnerabilities differ significantly from rural ones due to complex social dimensions of caste, class, and gender.
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Document type: Policy brief
Gender approaches in climate compatible development: Lessons from India
The report examines how gender-sensitive programming in urban India can enhance climate resilience and people's empowerment. Using the ACCCRN project in Mahewa ward, Gorakhpur, as a case study, it finds that while the project began as gender-blind, its evolution toward a gender-sensitive implementation phase significantly improved the sustainability of interventions in water, sanitation, and agriculture. The study highlights that urban gender dynamics differ from rural ones due to weaker social cohesion and higher dependence on external services. It concludes that women's active participation as agents of change, rather than mere recipients, drives better outcomes, though deep-seated patriarchal structures and a lack of gender-disaggregated data in planning remain significant barriers.
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Document type: Report
Providing Clean Cooking Fuel in India: Challenges and solutions
The report analyzes the transition from biomass and kerosene to LPG in Ghaziabad, India. It finds that while there is high willingness to use clean fuel, poor households are deterred by high startup costs and documentation requirements, often resorting to a costly black market. The study highlights the regressive nature of current subsidies and the significant impact of female literacy and household income on fuel switching.
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Document type: Report