Grid and off-grid electrification: An integrated model with applications to India

• Policy analysis of coordination for grid extension and off-grid electrification.
• Policy integration avoids duplication and encourages off-grid generation projects.
• Case study of India illustrates the utility of the policy model.

In many developing countries, the national electricity grid fails to provide rural communities with a reliable supply of electricity. Given the high socio-economic cost of this policy failure, both scholars and policymakers have recently become interested in off-grid electrification programs. However, the relationship between national grid expansion and off-grid electrification remains unclear. Are these two approaches independent of each other, or perhaps even competitors? This article develops a taxonomy that allows grid expansion and off-grid electrification to complement each other. Explicit policy integration is necessary to encourage investment in off-grid electrification and avoid duplication of effort. Otherwise, there is a danger that the poorest and geographically most remote segments of the rural population could be left outside electrification efforts. As an illustration, the article offers a case study of India.