Solar Irrigation Pumps and South 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 wells What 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 as 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 %  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 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: Nidhi PrabhaTewari

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