OMC Power, an Indian company, has developed an innovative business model to power remote telecommunication towers and rural communities through fully managed micropower units that generate electricity using renewable sources of energy (solar, wind, biomass). Their business model closely follows the RESCO model. That means, they don't sell renewable power generating equipment to customers, but they sell energy/electricity generated by them.
In India, we have a centralized grid-based electricity generation and distribution system. Though it is possible to achieve economies on scale with such a model, it is very difficult to connect remote/rural areas to the grid. In many cases, the costs associated with powerline and other related equipment is too high to justify grid-connectivity. It is estimated that 400 million people in India do not have access to electricity and many of them may not get connected to the grid at all!
OMC Power focuses on micropower systems that generate electricity locally using renewable energy technologies and their network engages in local distribution of that power. They focus on both power requirements for the industry (majorly telecommunications towers) and power requirements for people living in remote/rural locations.
Since the invention of cell phones, the telecommunication industry in India (and the world) has grown by leaps and bounds. People in rural areas are equally impressed with the utility/connectivity offered by cell phones, like their urban counterparts. But there are two hurdles - Availability of coverage from cell towers and lack of power/charging facilities. A Micropower generating facility can address both these concerns effectively!
OMC Power estimates that there are 400,000 telecom towers in India and around 150,000 of them don't have access to reliable electricity. They are mostly dependent on diesel generators, often without any back-up. OMC Power establishes mobile power plants (micropower generating facilities) to cater to the energy requirements of these cell towers.
OMC Power says that their micropower power plants use electricity generated by renewable energy systems like solar panels, wind turbines, biogas plants, etc. and the decision to do so is based on sound business logic (and profitability). They even employ diesel/CNG based generators to increase the reliability of their power plants.
These power plants are created, operated and managed by OMC Power. The company sells the electricity generated through them to nearby cell/telecommunication towers. As you can expect, these power plants can be employed to generate (and store) a considerable amount of power. Why not use the excess electricity to power neighboring villages/rural areas that have no connectivity to the grid? That's exactly what the company is doing.
OMC Power empowers franchisees/entrepreneurship in villages to supply power boxes (rechargeable batteries in a box with power sockets), extension boxes, LED lights, Fans and even a specially made TV that can run using the power stored in the power box to individual consumers.
The advantages for consumers should be obvious - They get electrical connectivity using which they can recharge their cell phones, have lights/fans/TV in their homes. They get all this without having to make any huge upfront investments in the form of solar panels/wind turbines. They just pay for their power as they go, in daily/monthly installments.
Based on the information provided in their website, it is my understanding that OMC Power employs people/franchisees to collect these power boxes/bijili boxes from individual customers, charge them during the day (in their mobile power plants) and return them in the evening. If this is correct, then it should be relatively hassle-free experience for consumers.
Now electricity might be affordable to anyone who wants it anywhere in the country. OMC Power is on a mission to make sure it happens. They have also been shortlisted as one of the possible winners of the prestigious 2013 Ashden awards. We wish them all the best, for both.
