Solar Irrigation Pumps and South Asia’s Water-Energy Nexus Tushaar Shah.

Solar Irrigation Pumps andSouth Asia’s Water-Energy Nexus

Tushaar Shah

25 million private groundwater wells

Groundwater scarce western corridor with

electric tubewells with

power subsidies

Groundwater rich but energy-poor eastern India dependant on diesel

1. Deadweight of electricity subsidies: US$ billions/year.

2. Perverse incentives driving groundwater depletion in western India

3. Rising diesel costs shrink the irrigation economy of Indo-Gangetic basin

4. Electricity/diesel in irrigation = 5-6% of total carbon emission in the region

25 million private groundwater wellsWhat is the problem?

The (partial) solution

Solar pumps can unlock India’s energy-irrigation logjam

But current promotional strategy based on capital cost subsidy• 80-90% subsidy on panel costs, perverse incentives

• Limits opportunities for open solar pump market

• Elite tend to capture the subsidies

• Potential for over-exploiting groundwater

A one-dimensional solution

ITP proposal: Solar a

s a

Energy-Water-

Livelihoods-Carbon

Solution

Approach

Research & Publishing

• Viability of solar pumping (state, national, int’l experience)

• ITP Highlights & EPW • Stockholm Water Week

Partnerships & Demonstrations

• Pilot studies in Gujarat & Bihar

• Partnerships: farmers, research, private sector

Influence Policy

• Presentations to Finance Ministers

CONTRIBUTION TO NATIONAL DEBATE

CATALYSE CHANGE

Composite solution: smart solar pump promotion

Research & Publishing

Reduce subsidy from the current 80-90% to 40-50%

Create a viable subsidy-loan financing model by involving banks and electricity companies

Abolish restrictions (pump size, drip, farm ponds) Streamline the process Tailor to India’s different groundwater ecologies

Composite solution: smart solar pump promotion

Western India

Solar power as cash crop with a guaranteed market at attractive price

Eastern India

Solar pump subsidies to create entrepreneurial Irrigation Service Providers

Research & Publishing

• Reduce financial cost of subsidies• Incentives to sell back solar power

rather than pump groundwater• Create irrigation service markets• Reduce the carbon footprint

Partners

Farmers and Pump Owners in Rajasthan and Bihar

Avinash Kishore of IFPRI

Rakesh Tewari (Bihar)

Nidhi Tewari (Rajasthan)

Partnerships & Demonstrations

Outcomes

India’s Finance Minister launches Rs. 400 crores (USD 66 million) scheme for solar power driven agricultural pump sets and water pumping stations

Karnataka, Orissa adopt ITP proposal

New GoI program to install 100k solar pumps with buy back provision

KARNATAKA

Influence Policy

Lessons learned

Policy change takes time

Requires communication, but also…

Demonstrations and pilots to promote detailed policy proposals A solar-powered pump installed at a farm irrigation

pond in Rajasthan.

Photo credit: N

idhi PrabhaTew

ari

Thank you