By Gaurav Bhatiani & Soumya P. Garnaik, Respectively senior fellow, Ashoka Centre for a People-centric Energy Transition and country representative–India, Global Green Growth Institute (GGGI)
Given limited progress at COP30 on mitigation goals, resilience can no longer be a peripheral chapter in climate discourse. For India, this shift is significant. According to the ministry of power, the country has already electrified almost all villages and accelerated clean energy transition. Yet power supply remains unreliable when most needed. The next task, thus, is to enhance reliability and resilience in the face of climate extremes.
India must reimagine its electricity network architecture. Strengthening the grid and raising standards are critical but will require time and investment. Further, most distribution companies are cash-strapped and have limited technical expertise. Even when enhanced standards are implemented, they will not eliminate damage. A decentralised, climate-resilient supply that activates when the main network falters is required. Low-voltage direct current solar microgrids offer an economical solution.
Microgrids are resilient by design—elevated solar panels, batteries and robust wiring systems that can withstand extreme conditions. They can function as a secondary supply. This approach offers dual advantages—it is climate resilient and development-oriented.
India has the ambition to become a developed economy by 2047. To get there, every household, school, shop, and small business needs reliable electricity. The economic dividends of reliability far exceed the cost of microgrids.
Reliability underpins productivity, and productivity drives growth. Steady power expands consumption, supports digital commerce, strengthens education, improves public health, and spurs rural entrepreneurship. Climate resilience thus becomes a doorway to development.
Microgrids should be designed such that communities play a key role in ownership, operations and maintenance. Local ownership builds trust and ensures accountability. Trained villagers respond first when issues arise, reducing downtime and costs.
Community involvement also enhances climate preparedness. In coastal and flood-prone regions, local committees can identify safe sites for panels and batteries, identify protective structures, and coordinate with disaster-response authorities. Their knowledge makes microgrid planning resilient and sustainable. During grid failure, a community-managed microgrid can be a social anchor supporting communication, safety, and essential services.
Microgrids do not require large capital outlays. A system serving 200-300 households costs `30-50 lakhs. Hybrid financing, or commercial finance blended with philanthropic capital or corporate social responsibility (CSR) funds and modest contributions from households can enable upfront funding. Public-sector energy companies can contribute a part of their annual CSR budgets (exceeding Rs 2,000 crore) for microgrid development.
Rural and development banks and financial institutions play a pivotal role in providing long-term financing. Specialised lending products tailored to microgrid cash-flow profiles supported by credit guarantees and risk-sharing mechanisms can reduce perceived risks.
Local discoms can provide technical oversight for procurement and installation, while communities can take responsibility for day-to-day operations. These steps make the financial burden on households negligible, often lower than the cost of coping with unreliable supply.
To enable microgrids, they should be formally recognised as resilience infrastructure. Disaster-management plans should integrate them as essential assets capable of sustaining communication, lighting, and basic services during emergencies. The Central Electricity Authority can set standards that ensure quality and safety without imposing utility-scale regulation.
Discom-community partnerships should be encouraged by clarifying that microgrids complement the grid. A layered architecture that complements a core grid with community-managed decentralised microgrids will enhance reliability and resilience.
Microgrid deployment should be prioritised in states where electricity deficits and climate vulnerabilities are maximum. An analysis of rural hours of supply and climate-risk indicators reveals Uttar Pradesh, Bihar, Karnataka, Haryana, Uttarakhand, and Rajasthan as high-priority. These states typically receive less than 22 hours of electricity and rank high on climate vulnerability. They also have large populations and relatively lower per-capita income and electricity consumption, particularly in rural areas.
A phased approach focused on high-need states aligns equity and efficient resource allocation. Other states such as Tamil Nadu, Maharashtra, Andhra Pradesh, Kerala and Gujarat also face high climate risks but have significantly better supply. A data-driven district level assessment in these states would enable identification of high priority districts, advancing sustainable energy access and climate adaptation.
Much of the global conversation is centered on pursuing ambitious energy transition goals. India has an opportunity to present a narrative that acknowledges climate risks and responds with grounded, locally appropriate solutions.
Microgrids offer an appropriate and decentralised response. They protect the poorest without requiring complex technology or large capital. A nationwide commitment to microgrids would demonstrate a model of adaptation that is scalable and rooted in community ownership.
By elevating microgrids as a central element of its climate-resilience strategy, India can capture their full potential and lead global efforts toward sustainable energy systems. Such a step would not only strengthen India’s adaptation agenda but enhance its international credibility and leadership.