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India’s Energy 
Groundwater Nexus: 
Present State and 
Future Prospects 
Tushaar Shah 
Senior Fellow, IWMI 
Member, GWP-TEC
Since 1830, few countries in the world have 
invested as much in canal irrigation as India has.. 
today..
Yet, the mainstay of Indian agriculture today are 25 million 
private groundwater wells- 15 m electric and 10 m diesel. 
Each dot represents 
5000 irrigation 
wells 
Electricity use: 120-150 
thousand GWh; 
Diesel use: 5-8 billion litres 
Groundwater pumped: 230-250 
billion m3 
Area irrigated 60-70 million ha
During the 1970’s, governments anxious to expand irrigation 
began to subsidize farm power for irrigation. Soon, this elixir 
became the opiate..for a politically strident vote-bank 
Energy divide of Indian groundwater economy 
Groundwater rich but 
energy-poor eastern India 
dependent on diesel.. 
Groundwater 
scarce 
western 
corridor with 
electric 
tubewells 
with power 
subsidies
Farm power subsidies soon became perverse 
Impacts 
• Agricultural economy 
addicted to subsidies 
• Vote-bank politics 
• Depleted aquifers 
• Bankrupt electricity 
industry 
• Massive waste of power 
and water 
• Anarchy on electric 
feeders
Electricity subsidy as a percentage of state fiscal deficits 
very high in some states 
0 20 40 60 80 100 
Bihar 
West Bengal 
U.P (Power corp) 
Maharashtra 
Punjab 
Tamil Nadu 
Rajasthan (Transco) 
Karnataka 
Andhra Pradesh 
Gujarat 
Haryana 
Madhya Pradesh 
Percentage 
BRISCOE, 2005, Data 
pertains to 2002 
Many electricity 
utilities went 
bankrupt.. 
Yet farmers 
received poor 
quality power 
supply
Perverse electricity-groundwater 
nexus 
at its worst..
West Bengal pulled this off 
because it has few electric tube 
wells. In western states, this 
would fell governments.. 
West Bengal’s 
textbook pricing 
solution: meter and 
TOD tariff
Gujarat’s Jyotigram 
Yojana: second-best 
but politically feasible 
rationing solution
Gujarat, the original ‘basket case’ rewired the country-side and 
created a tamper-proof system of rationing farm power.. 
Figure 1 a Electricity Network Before Figure 1 b Electricity Network after
Community-driven water harvesting and groundwater recharge 
movement in Saurashtra has revitalized dying agriculture 
Meghal basin drainage network Profusion of check dams built by 
people, with government support
Gujarat’s agriculture has been growing @ 9+% 
This growth is energized by groundwater irrigation. 
Yet, Gujarat is the only state in western India where 
groundwater levels are improving..and the electricity 
utility is again making money..
Investing in decentralized Managed Aquifer Recharge can ease the 
energy-groundwater nexus in western India 
Energy use/m3 of groundwater 
Without MAR With decentralized MAR
The energy-groundwater 
nexus in Eastern India, 
Bangladesh, Nepal terai 
and Pakistan Punjab 
No electricity; little subsidy; 
Abundant groundwater; massive 
poverty; but the diesel-dependent 
groundwater economy is 
shrinking with each increase in 
diesel price;
India’s energy groundwater nexus
Solar Irrigation Pumps: 
Five Problems, One Solution
Total solution to India’s energy-groundwater nexus: 
Smart Solar Pump Promotion Strategy 
Problem 1:A1 
nannual farm 
power subsidy bill: 
US $ 6 billion 
Eastern India: solar pump subsidies 
to create entrepreneurial Irrigation 
Service Providers 
Smart subsidy-loan model for solar 
pumps and buried pipe distribution 
system to catalyze vibrant local 
irrigation service markets 
Replacing all electric 
irrigation pumps in India 
by solar pumps would save 
US $ 5 billion/year in 
subsidies 
Western India: solar power as cash crop 
1.Subsidize solar pumps to wean farmer 
away from grid power; 
2. provide assured buy-back of surplus 
solar power by net metering at same 
terms as MW scale solar plants; 
3. organize solar farmer co-ops to pool 
solar power in a village and evacuate it at 
single point.
Total solution to India’s energy-groundwater nexus: 
Smart Solar Pump Promotion Strategy 
Problem 2:A1 
Unreliable, poor 
quality grid power 
supply during 
nights 
Eastern India: solar pump subsidies 
to create entrepreneurial Irrigation 
Service Providers 
Smart subsidy-loan model for solar 
pumps and buried pipe distribution 
system to catalyze vibrant local 
irrigation service markets 
Solar pumps can offer 
2500-3500 hours/year of 
reliable power during the 
day year-round all over 
India 
Western India: solar power as cash crop 
1.Subsidize solar pumps to wean farmer 
away from grid power; 
2. provide assured buy-back of surplus 
solar power by net metering at same 
terms as MW scale solar plants; 
3. organize solar farmer co-ops to pool 
solar power in a village and evacuate it at 
single point.
Total solution to India’s energy-groundwater nexus: 
Smart Solar Pump Promotion Strategy 
Problem 3:A1 
Nperverse incentives 
drive groundwater 
depletion in western 
India 
Eastern India: solar pump subsidies 
to create entrepreneurial Irrigation 
Service Providers 
Smart subsidy-loan model for solar 
pumps and buried pipe distribution 
system to catalyze vibrant local 
irrigation service markets 
With assured buyback of 
surplus solar power from 
solar farmer coops, farmers 
will treat solar energy as a 
lucrative ‘ cash crop’. 
Western India: solar power as cash crop 
1.Subsidize solar pumps to wean farmer 
away from grid power; 
2. provide assured buy-back of surplus 
solar power by net metering at same 
terms as MW scale solar plants; 
3. organize solar farmer co-ops to pool 
solar power in a village and evacuate it at 
single point.
Total solution to India’s energy-groundwater nexus: 
Smart Solar Pump Promotion Strategy 
Western India: solar power as cash crop 
1.Subsidize solar pumps to wean farmer 
away from grid power; 
2. provide assured buy-back of surplus 
solar power by net metering at same 
terms as MW scale solar plants; 
3. organize solar farmer co-ops to pool 
solar power in a village and evacuate it at 
single point. 
Problem 4:A1Rising 
diesel costs shrink 
groundwater economy 
of eastern India with 
immiserising results 
Eastern India: solar pump subsidies 
to create entrepreneurial Irrigation 
Service Providers 
Smart subsidy-loan model for solar 
pumps and buried pipe distribution 
system to catalyze vibrant local 
irrigation service markets 
Solar pump based 
Irrigation Service Markets 
are insulated from soaring 
diesel prices and from 
unreliable grid power.
Total solution to India’s energy-groundwater nexus: 
Smart Solar Pump Promotion Strategy 
Problem5: 
Agroundwater 
economy accounts for 
6% of India’s carbon 
emission 
Eastern India: solar pump subsidies 
to create entrepreneurial Irrigation 
Service Providers 
Smart subsidy-loan model for solar 
pumps and buried pipe distribution 
system to catalyze vibrant local 
irrigation service markets 
Replacing thermal power and 
diesel by solar pumps transforms 
India’s ‘dirty’ groundwater 
irrigation economy into clean 
and green. 
Western India: solar power as cash crop 
1.Subsidize solar pumps to wean farmer 
away from grid power; 
2. provide assured buy-back of surplus 
solar power by net metering at same 
terms as MW scale solar plants; 
3. organize solar farmer co-ops to pool 
solar power in a village and evacuate it at 
single point.
Governments have begun offering outrageously 
lucrative solar pump subsidies. 
But these are dumb. They promote solar 
pump as only a ‘green’ energy solution. 
A smart subsidy would promote solar pumps as an 
energy-water-environment-livelihoods solution 
Thank You for this 
opportunity

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India’s energy groundwater nexus

  • 1. India’s Energy Groundwater Nexus: Present State and Future Prospects Tushaar Shah Senior Fellow, IWMI Member, GWP-TEC
  • 2. Since 1830, few countries in the world have invested as much in canal irrigation as India has.. today..
  • 3. Yet, the mainstay of Indian agriculture today are 25 million private groundwater wells- 15 m electric and 10 m diesel. Each dot represents 5000 irrigation wells Electricity use: 120-150 thousand GWh; Diesel use: 5-8 billion litres Groundwater pumped: 230-250 billion m3 Area irrigated 60-70 million ha
  • 4. During the 1970’s, governments anxious to expand irrigation began to subsidize farm power for irrigation. Soon, this elixir became the opiate..for a politically strident vote-bank Energy divide of Indian groundwater economy Groundwater rich but energy-poor eastern India dependent on diesel.. Groundwater scarce western corridor with electric tubewells with power subsidies
  • 5. Farm power subsidies soon became perverse Impacts • Agricultural economy addicted to subsidies • Vote-bank politics • Depleted aquifers • Bankrupt electricity industry • Massive waste of power and water • Anarchy on electric feeders
  • 6. Electricity subsidy as a percentage of state fiscal deficits very high in some states 0 20 40 60 80 100 Bihar West Bengal U.P (Power corp) Maharashtra Punjab Tamil Nadu Rajasthan (Transco) Karnataka Andhra Pradesh Gujarat Haryana Madhya Pradesh Percentage BRISCOE, 2005, Data pertains to 2002 Many electricity utilities went bankrupt.. Yet farmers received poor quality power supply
  • 8. West Bengal pulled this off because it has few electric tube wells. In western states, this would fell governments.. West Bengal’s textbook pricing solution: meter and TOD tariff
  • 9. Gujarat’s Jyotigram Yojana: second-best but politically feasible rationing solution
  • 10. Gujarat, the original ‘basket case’ rewired the country-side and created a tamper-proof system of rationing farm power.. Figure 1 a Electricity Network Before Figure 1 b Electricity Network after
  • 11. Community-driven water harvesting and groundwater recharge movement in Saurashtra has revitalized dying agriculture Meghal basin drainage network Profusion of check dams built by people, with government support
  • 12. Gujarat’s agriculture has been growing @ 9+% This growth is energized by groundwater irrigation. Yet, Gujarat is the only state in western India where groundwater levels are improving..and the electricity utility is again making money..
  • 13. Investing in decentralized Managed Aquifer Recharge can ease the energy-groundwater nexus in western India Energy use/m3 of groundwater Without MAR With decentralized MAR
  • 14. The energy-groundwater nexus in Eastern India, Bangladesh, Nepal terai and Pakistan Punjab No electricity; little subsidy; Abundant groundwater; massive poverty; but the diesel-dependent groundwater economy is shrinking with each increase in diesel price;
  • 16. Solar Irrigation Pumps: Five Problems, One Solution
  • 17. Total solution to India’s energy-groundwater nexus: Smart Solar Pump Promotion Strategy Problem 1:A1 nannual farm power subsidy bill: US $ 6 billion Eastern India: solar pump subsidies to create entrepreneurial Irrigation Service Providers Smart subsidy-loan model for solar pumps and buried pipe distribution system to catalyze vibrant local irrigation service markets Replacing all electric irrigation pumps in India by solar pumps would save US $ 5 billion/year in subsidies Western India: solar power as cash crop 1.Subsidize solar pumps to wean farmer away from grid power; 2. provide assured buy-back of surplus solar power by net metering at same terms as MW scale solar plants; 3. organize solar farmer co-ops to pool solar power in a village and evacuate it at single point.
  • 18. Total solution to India’s energy-groundwater nexus: Smart Solar Pump Promotion Strategy Problem 2:A1 Unreliable, poor quality grid power supply during nights Eastern India: solar pump subsidies to create entrepreneurial Irrigation Service Providers Smart subsidy-loan model for solar pumps and buried pipe distribution system to catalyze vibrant local irrigation service markets Solar pumps can offer 2500-3500 hours/year of reliable power during the day year-round all over India Western India: solar power as cash crop 1.Subsidize solar pumps to wean farmer away from grid power; 2. provide assured buy-back of surplus solar power by net metering at same terms as MW scale solar plants; 3. organize solar farmer co-ops to pool solar power in a village and evacuate it at single point.
  • 19. Total solution to India’s energy-groundwater nexus: Smart Solar Pump Promotion Strategy Problem 3:A1 Nperverse incentives drive groundwater depletion in western India Eastern India: solar pump subsidies to create entrepreneurial Irrigation Service Providers Smart subsidy-loan model for solar pumps and buried pipe distribution system to catalyze vibrant local irrigation service markets With assured buyback of surplus solar power from solar farmer coops, farmers will treat solar energy as a lucrative ‘ cash crop’. Western India: solar power as cash crop 1.Subsidize solar pumps to wean farmer away from grid power; 2. provide assured buy-back of surplus solar power by net metering at same terms as MW scale solar plants; 3. organize solar farmer co-ops to pool solar power in a village and evacuate it at single point.
  • 20. Total solution to India’s energy-groundwater nexus: Smart Solar Pump Promotion Strategy Western India: solar power as cash crop 1.Subsidize solar pumps to wean farmer away from grid power; 2. provide assured buy-back of surplus solar power by net metering at same terms as MW scale solar plants; 3. organize solar farmer co-ops to pool solar power in a village and evacuate it at single point. Problem 4:A1Rising diesel costs shrink groundwater economy of eastern India with immiserising results Eastern India: solar pump subsidies to create entrepreneurial Irrigation Service Providers Smart subsidy-loan model for solar pumps and buried pipe distribution system to catalyze vibrant local irrigation service markets Solar pump based Irrigation Service Markets are insulated from soaring diesel prices and from unreliable grid power.
  • 21. Total solution to India’s energy-groundwater nexus: Smart Solar Pump Promotion Strategy Problem5: Agroundwater economy accounts for 6% of India’s carbon emission Eastern India: solar pump subsidies to create entrepreneurial Irrigation Service Providers Smart subsidy-loan model for solar pumps and buried pipe distribution system to catalyze vibrant local irrigation service markets Replacing thermal power and diesel by solar pumps transforms India’s ‘dirty’ groundwater irrigation economy into clean and green. Western India: solar power as cash crop 1.Subsidize solar pumps to wean farmer away from grid power; 2. provide assured buy-back of surplus solar power by net metering at same terms as MW scale solar plants; 3. organize solar farmer co-ops to pool solar power in a village and evacuate it at single point.
  • 22. Governments have begun offering outrageously lucrative solar pump subsidies. But these are dumb. They promote solar pump as only a ‘green’ energy solution. A smart subsidy would promote solar pumps as an energy-water-environment-livelihoods solution Thank You for this opportunity