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UNDP – MNREACCESS TO CLEAN ENERGY

PROJECT CLOSURE REPORTDECEMBER 2012

NEW DELHI, INDIA

PROGRAMME PERIOD: 1 DECEMBER 2009 TO 31 DECEMBER 2012

CONTRIBUTORS TO WRITING THE REPORTV K JAIN

S N SRINIVASSANDEEP TANDON

Project Team Engagement Period

Project Management Cell - MNRE Government of India

National Project Director: Ms.Gauri Singh, Joint Secretary, MNRE December 2009 to February,2011Shashi Shekhar, Joint Secretary, MNRE February 2011 to December 2011 Tarun Kapoor, Joint Secretary, MNRE January 2012 to March 2012Alok Srivastava, Joint Secretary, MNRE April 2012 to December 2012

National Project Coordinator: V K Jain, Director, MNRE December 2009 to December 2012

ConsultantSandeep Tandon October 2012 to December

2012

Project Management Unit (PMU) PMU Setup by Winrock International India (WII) January 2011 to May 2012

PMU Team Members:K P Sukumaran, National Project Manager December 2009 to December 2011Amit Dwivedi, Project AssociateBhupinder KumarManoj KumarYashpal Singh

WII Team Members: Kinsuk Mitra, Ph.D ; Ritu Bhardwaj;, Shankar Haldar UNDP Officers - December 2009 to December 2012

Ms Preeti Soni, Ph.D. Assistant Country Director, Environment and Energy Unit

December 2009 to July 2011Srinivasan Iyer, Assistant Country Director, Environment and Energy

Unit

July 2011 to December 2012S.N. Srinivas, Ph. D, Programme Analyst

December 2009 to December 2012

Ms Manisha Sanghani, Programme Associate July 2012 to December 2012

ACKNOWLEDGEMENTS

This closure report required extensive document review, numerous interviews, and site visits in many locations in India. It would not have been possible to complete the task without the generous assistance of Mr. V.K. Jain, Director (also National Project Coordinator), Ministry of New and Renewable Energy (MNRE), Mr. Bhupinder Kumar and Mr Manoj Kumar at the Project Management Cell in MNRE, Mr. Amit Deshpande, S3IDF, Mr Alok Piri and Mr Nirmal Mohanty, ONergy, Ms Anne Marie Moeller, Humana People to People India and Mr Rakesh Pandey, Shramik Bharti. Their support in sharing the project information as well as cooperation for visits to project location and patience in answering to all the questions is much appreciated and has helped to make work easier.

Thanks also to S.N. Srinivas, Ph.D and Ms. Manisha Sanghani in UNDP’s Environment and Energy unity for providing guidance and generous sharing of their time. Finally, thanks to UNDP staff, in particular, Ms Manju Narang and Ms Nishu Nirula for their cooperation and support.

PREFACE

UNDP in partnership with Government of India’s Ministry of New and Renewable Energy (MNRE) initiated a programme on accelerating Access to Clean Energy (ACE) during Country Programme Action Plan 2008-2012. The funding was provided from UNDP track. MNRE provided co-financing in-kind and scheme support. The imitative was aimed at UNDAF states (United Nations Development Agency Framework) namely Bihar, Chattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh which have low human development Index.

The ACE project began with an aim of up scaling cost effective, replicable and financially viable entrepreneurship based business and delivery models for deployment of RET and providing inputs to develop strategy for accelerating access to clean energy. This report compiles the progress and achievement of UNDP-MNRE ACE project from Dec 2009 to Dec 2012 and provides some set of recommendations for consideration for future course of action

The project compiled two compendiums, the first consisting of 26 case studies, released at DIREC 201 and nearly 3000 copies disseminated and the second compendium consisting of 29 case studies released during International Seminar on Energy Access and nearly 2000 copies disseminated and uploaded on many wesbsites. The project supported development of a document on Global Energy Access Centre as a nodal agency for executing the National Energy Access Plan. Project supported seven pilot projects with the aim to develop business models to promote renewable energy especially in off grid areas.

Access to Energy is an important topic of consideration in India with still about 300 million people without electricity and over 600 million people depending on biomass looking restricting overall development and standard of living. In the backdrop of global agenda set forth by UN Secretary General, ‘Sustinable Energy For All’, the lessons from this small initiative can help develop more focused programmes for enhancing access and further proliferation renewable energy.

V K JAIN S N SRINIVAS

This document is prepared for the United Nations Development Programme (UNDP) as part of project closure reporting requirements.

TABLE OF CONTENTS1. Executive Summary.........................................................82. Introduction..................................................................12

2.1 Background....................................................................122.2 Objectives......................................................................132.3 Project Brief...................................................................132.4 Situational Analysis........................................................142.5 Management Arrangement..............................................17

3. Project Progress............................................................183.1 Project Outcomes............................................................193.2 Pilot Projects..................................................................203.3 Description of Pilot Projects Receiving MNRE Grant Support22

3.3.1 Humana People to People India (HPPI).........................223.3.2 Shramik Bharti...........................................................253.3.3 Punam Energy Private Limited (ONergy)......................273.3.4 Emerging Energies Private Limited..............................303.3.5 Small Scale Sustainable Infrastructure Development Fund

.................................................................................313.3.6 Technology Informatics Design Endeavours..................343.3.7 Saran Renewable Energy Private Limited.....................35

3.4 Workshop in Patna..........................................................363.5 Training Manual on Clean Development Mechanism..........373.6 Renewable Energy Plan for Two States.............................383.7 National Strategy for Accelerated Access to Clean Energy.383.8 List of NGOs in UNDAF States..........................................38

4. Conclusion And Recommendations..................................414.1 Conclusion......................................................................414.2 Recommendations..........................................................43

ACRONYMS

ACE Access to Clean EnergyADB Asian Development BankAWB- Annual Work PlanBPL Below Poverty LineCAGR Compound Annual Growth RateCDM Clean Development MechanismCPAP Country Programme Action PlanEE Energy efficiency

EPC Engineering Procurement ConstructionFACE Fund Authorization and Certificate of ExpenditureGHG Greenhouse gasGOI Government of IndiaIEP Integrated Energy PolicyJNNSM Jawaharlal Nehru National Solar MissionkWh kilowatt-hourMW MegawattMNRE Ministry of New and Renewable EnergyNABARD National Bank for Agriculture and Rural DevelopmentNAPCC National Action Plan for Climate ChangeNGO Non Governmental OrganizationNPC National Project CoordinatorsNPD National Project DirectorNPV Net present ValueNSM National Solar MissionPEC Project Executive CommitteePMU Project Management UnitPSC Project Steering CommitteeQWP Quarterly Work PlanRET Renewable Energy TechnologySHG Self Help GroupSPV Solar PhotovoltaicSNA State Nodal AgencyUNDP United Nations Development ProgrammeUNDAF United Nations Development Assistance Framework

UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013) P a g e | 8

1. EXECUTIVE SUMMARY1. In December 2009 UNDP in partnership with Government of India’s

Ministry of New and Renewable Energy (MNRE) initiated programme on accelerating Access to Clean Energy to provide clean and renewable energy in remote un-electrified villages of the seven United Nations Development Assistance Framework (UNDAF1) states and explore possibility of developing business models for replication throughout India.

2. The project set forth with four targets namely;2.1. Review existing policies, pilots and experiences2.2. Design framework for inclusive planning and implementation in

350 villages2.3. Pilots to address gaps and up-scaling2.4. Inputs for a policy on Accelerated Access to Clean EnergyActivities carried out to achieve the above targets are described in the subsequent sections below.

3. Review existing policies, pilots and experiencesTwo compendium capturing details of pilots and experience of renewable energy projects were prepared.3.1. Access to Clean Energy – A glimpse of off-grid projects in India: This compendium captured 26 case studies. 3000 copies of this compendium were disseminated. The book was released at DIREC 2010 and 1000 copies were disseminated at the event. Further another 2000 copies were disseminated directly and through State Nodal Agencies (SNA). This has been uploaded on website in the link http://www.undp.org/content/india/en/home/operations/projects/environment_and_energy/access_to_clean_energy/

3.2. “Empowering Rural India the RE Way” This compendium captured 29 case studies. It was released in the main event of International Seminar on Energy Access on 9 Oct 2012. 2000 copies were distributed. These are available on UNDP website for future reference. http://www.undp.org/content/india/en/home/operations/projects/environment_and_energy/access_to_clean_energy/

3.3. GEAC

1 During Country Programme Action Plan 2008-2012, UNDP along with other UN agencies decided to focus on seven states namely, Bihar, Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Rajasthan and Uttar Pradesh, often named them as UNDAF states.


http://www.undp.org/content/india/en/home/operations/projects/environment_and_energy/access_to_clean_energy/




A background document on the ‘Global Energy Access Centre (GEAC),’ was prepared. GEAC would be a non-profit entity registered in India. The immediate focus of the GEAC will be on proactively improving the energy access situation in India, and contributing towards global efforts in this direction. It would provide support to ongoing (and new) programmes, and not undertake direct implementation/ dissemination of technologies. it is envisaged that the GEAC will be the nodal agency for executing the National Energy Access Plan. The Centre will ensure that there is cross-ministerial working as required so that there is no duplication of effort and that no area is left unattended. More generally, the Centre should play a crucial linking role by providing a forum for India renewable energy communities in areas of business, policy, research, technology and financing, who in the past have lacked a common platform to voice their views and concerns collectively. The Centre will work with industry to develop and strengthen international cooperation for information exchange, business development, international market development, technology transfer, and foreign investment.

It is envisaged that the centre would require Rs 22,820,000 during the establishment phase and Rs. 62,818,000 during the operational phase. The Establishment Phase, will focus on high level advocacy to create a momentum around the energy access issue in India and globally on the one hand, and on the other, identifying the exact mix of activities that the Centre will undertake on a regular basis, and putting in place an effective and efficient institutional structure to carry these out. It is proposed that the GEAC led by the MNRE develop and put forth a National Energy Access Plan (NEAP), a holistic implementation-ready action plan to expand energy access for the poor, highlighting the challenges and opportunities that lie ahead, identifying specific projects and initiatives for implementation.

Operations Phase (April 2013- March 2015): The years 2013-2015 constitute the first two years of full-scale working of the Centre and develop a portfolio of products, services, and activities alongside strengthening the execution teams. These products and services would be in line with the Centre’s multiple roles of a technical advisory, knowledge gateway, regional hub and a lead institution for research, pilot projects and capacity building in energy access.

4. Design framework for inclusive planning and implementation in 350 villages4.1. PMC designed the framework for pilot projects. Project Steering

Committee (PSC), with representatives from MNRE, IREDA and UNDP, approved the guidelines and procedures for management of funds &


due diligence process for selection of proposals. The Annual Work Plans (Attachment 4) were finalized to support implementation of projects activities based on the requirements and priorities. Pilot projects were categorized into three areas covering demonstration of scaling up of business model, market development. The scaling up and market development was to be focused only in UNDAF states, whereas new technology could be considered even out of the UNDAF states. These pilots have provided some noteworthy learning which contradicts the common perceptions. Seven RET projects received MNRE grant sanction to demonstrate innovative technology, business models, market development and scale-up. These are listed below with brief description of achievements made so far;

Scaling up of business model4.1.1. Humana People to People India (HPPI) has proposed to install 41

micro-grids of capacity powered by Solar Photovoltaic (SPV) system in villages of four Unnao, Hardoi, Badayun, Sant Ravidas Nagar districts in Uttara Pradesh. Each micro-grid will serve maximum 40 households. The micro-grids (MG) will be owned and operated by local entrepreneur who will invest 65% of the total cost of the grid. The remaining 35% cost will be covered by MNRE through the grant support provided to HPPI.

4.1.2. Dinkar Solar Power Station and Rice Husk Gasifier by Shramik Bharti, Madhya Pradesh: Shramik Bharti a Kanpur based NGO has proposed to set up Dinkar Solar Power Station consisting of a 10 kW SPV and 24kW rice husk gasifier. With about 300 sun shine days in a year, the station will depend on producer gas from rice husk to generate power during remaining 65 days. The expected use of power generated will be for supply to households and select shops/enterprise in the adjoining village, farmers to run the irrigation pumps, and for the community radio station operated by Shramik Bharti.

4.1.3. PYRO Multipurpose stove by TIDE [Rajasthan]: Project aims at up-scaling fuel efficient stoves (PYRO multipurpose stove) for commercial kitchens in Kishangarh and semi-rural regions around Ajmer, Rajasthan. The target is to install 200 stoves in two years to meet cooking needs of road-side eateries/restaurants, hotels, sweet-shops and school messes. The cost of stove is about Rs 12,000 and will have a payback period of 8 to 10 months due to savings in fuel consumption. However, only preliminary survey was conducted by TIDE and project intervention arrangements with local people set up during December 2012.

4.1.4. Saran Renewable Energy (SRE) biomass gasifier, [Uttar Pradesh]: SRE has proposed to generate and supply reliable electricity to small businesses by setting decentralized power plants using biomass gasifier technology. It will also grow biomass which will serve as


feedstock for the power plant. SRE proposes to set up a 32 kW power plant at Galimapur, 24kw power plant in Qutabpur and two units of 32kW in Ramnagar in Ballia district in Uttar Pradesh. The project aims to reach 3,500 households in 12 villages of Bihar and U.P. states. SRE will educate the farmers on how to grow the crop (feedstock) for the gasifier and guarantee purchase of the biomass grown.

Market development4.1.5. ONergy is setting up One Shakti Kendra (renewable energy

centers) to deploy renewable energy products to the bottom of pyramid communities in the rural Odisha covering 20 villages, creating 100 rural enterprises with in the first year of operation. The project will develop a strong network of entrepreneurs who will be trained by the Shakti Kendra and empowered to assemble, sell and service the RET devices which will be sold through Shakti Kendra. awareness about RET as well as serve as point of sale of renewable energy devices, training of local people to manage sales and after sales maintenance. The RET products promoted by the Shakti Kendra will be SPV based LED lighting systems, solar lantern, solar home electrification system and improved cook stoves.

4.1.6. Small Scale Sustainable Infrastructure Development Fund (S3IDF): S3IDF has proposed to set up Urja (energy centers) which will be used to spread the awareness about RET as well as serve as point of sale of renewable energy devices, training of local people to manage sales and after sales maintenance. Villages and hamlets in the selected block of the district in focus would be examined for electrification status and reliability and feasible RET which can be sold by the energy centre. Suitable RET will be promoted and installed in the villages with an aim of economic and social development. Potential RET identified are SPV based lighting technologies and improved cook stoves for domestic and institutional use.

New technologies4.1.7. Emerging Energies Private Limited (EEPL) has proposed to set up

pilot projects of its hydro kinetic technology for village electrification in two villages in Rae Bareilly district of Uttar Pradesh. The mission of the pilot project is to demonstrate a full business model utilizing technological innovation that harnesses the velocity of water to generate electricity. EEPL has surveyed the area and found a total existing demand of 48kW. To meet some of the demand, EEPL proposed to set up a 2 x 15kW plant which will service over half of the customers in demand and then add additional 20kW after the first year of successful operation.


4.2. Broad observations from field visits to pilot projects: Field visits were carried out to all the pilot projects. The response received can be summarized as follows: It appeared that the willingness of people in rural area to use RET is very high. They feel RET are more dependable and realize that there are no operating costs is involved particularly in case of solar based RET. It allows them to greatly reduce and even relinquish the use of kerosene. SPV based lighting systems and home lighting systems are being bought by the villagers despite the fact that they have access to grid electricity. Rural households with limited income also have come forward to purchase of RET as they realize that compared to kerosene, there are no daily operating expense of a SPV lighting system. Finally, there is gradually growing awareness that the use of an improved cook stove leads to perceptible reduction in smoke emission and saving in fuel usage even though the fuel wood is freely available to villagers.

These pilot projects provided two very important leads. First, the use of SPV based lighting products can reduce and even eliminate demand of kerosene for the same end use i.e. lighting. This is an important finding since Kerosene continues to receive heavy subsidy from the government, much more than any other fossil fuel and is therefore a major drain on GOI resources. The villagers who have experienced the benefits of SPV based lighting are reluctant to use kerosene lamps or lantern not only due to associated cost factors but also due to its inferior illumination levels and safety issues.

Second, biomass in the form of crop residue (or straw/husk) and woody biomass is the main source of fuel used as cooking fuel in rural area throughout India. The closest alternative is dung cakes which are a much greater source of indoor air pollution due to its burning characteristic as compared to biomass. Concerted efforts are needed to increase deployment of improved cook stove which is 35% to 50% more efficient as compared to conventional three-stone cook stove prevalent due to do its ease of construction including the villages where pilots under ACE are ongoing. Use of efficient cook stoves has lead to a significant reduction in the use of biomass. Deployment of improved cook stove can help reduce the rate of loss of forests which are an important ecological and environmental assets serving as carbon sinks.

5. Inputs for a policy on Accelerated Access to Clean Energy5.1. Renewable Energy Plan for Chhattisgarh and Odisha were carried

out. The report provides an overview of energy access and use in the country detailing the status of energy demand under growing economic conditions and the issues and concerns around access to


energy. It also provides details of the barriers impeding the scaling up of renewable energy technologies and includes a detailed assessment of the energy access and use of energy with particular reference to remote rural pockets of Odisha and Chhattisgarh. The report finally provides recommendations on proposed strategies that are needed for promotion of renewables at the state level with special emphasis on the UNDAF states that can be applicable to other states as well. The key recommendations are around enabling policy framework included need for cohesion in government of India policies- aligning the low carbon growth strategy with the National Action Plan on Climate Change with regards to targets of renewable energy in fuel mix during 2010-20.

5.2. National Strategy for Accelerated Access to Clean Energy prepared suggest that Renewable technologies are suited to distributed applications, and they have substantial potential to provide a reliable and secure energy supply as an alternative to grid extension or as a supplement to grid-provided power. Because of the remoteness of much of India's un-electrified population, renewable energy can offer an economically viable means of providing connections to these communities. Some of the key barriers to large scale deployment of renewable energy are information and awareness; financial; technological; institutional and; market. The report further suggests that if technology outreach is improved, organisational and policy support strengthened, institutional financing encouraged, and all these measures are backed up by strategic training and capacity building efforts, renewable energy can make a significant contribution in meeting country’s energy needs.

6. Lessons The project provided a few lessons which are described below.

6.1. The programme could not start on time: The programme was planned for five years under the Country Programme Action Plan (CPAP) from 2008 to 2012. However, the approval on the programme was secured only in November 2008 and the first Annual Work Plan could document was signed between UNDP and MNRE in Dec 2009. It is important to start off the programme coinciding with programme start to leverage full project period to complete all the activities and capture the impacts.

6.2. Delay in start of pilots: Significant time was spent in DPRs preparation, and approval of DPRs translating to pilot projects. By the time few pilot project received sanction the original duration of project implementation was reduced to half. This gave very little time to the project proponent to implement the projects on ground, gather


lessons and provide inputs for up-scaling. Typically pilot projects, such those being supported under ACE test new concepts and business models, and thus face unforeseen challenges over and above the identified risk factors. Therefore they require flexibility in implementation and financial support and longer gestation period before results are visible. The process of selection and approval of pilot projects should follow a firm time table so that the performance period is not reduced.

6.3. No scope for quantification for tangible outcomes/impacts: Due to delayed start of pilot projects, these projects were given did not sufficient time to take the pilot projects to the defined end-point within the life of ACE project. Few pilots faced unforeseen difficulties and have not even started. Furthermore, there was no plan put in place to quantify the impact of projects such as quantity of kerosene consumption reduced in the service area during the life of pilot or amount spent by per household on a SPV lighting product or improved cookstove, or total investment made by local banks to finance SPV lighting system or institutional cookstoves. These quantifiable numbers are useful pointers and indicators of a trend for state government as well as MNRE and serve as useful inputs for future policy formulation.

6.4. Market development programmes: The limited pilot showcased that there is enormous scope to proliferate clean energy through market development programmes. Very little financial inputs helped leverage significant private investments. Hence there has to be concerted market development efforts.

6.5. Project implementation structure: The project set out to carry out something innovative in terms of pilot implementation to lead to upscaling which require commitments from implementing agencies. During the present cycle of the programme, RFP was floated and proposals sought and awarded in business as usual manner. The financial allocation provided by UNDP could not be fully utilised. The project team should review if an alternate method of commitments from partners is sought at an early stage with set of outcomes, outputs, activities and deliverables.

7. Way forward

7.1. Continue to nurture the Pilots undertaken: All the seven pilots chosen were applying significant due diligence representing variety of issues, proposing range of solutions. The NGOs carrying out these projects have been on-ground for several years, and they have spent significant time in community mobilisation for ACE pilot project.


However, since the approval has come only in 2012, they were unable to complete the tasks set forth. Hence, it is highly recommended that they are supported to complete the tasks they set forth, and they provide in quantifiable terms, the impact of the pilot project.

7.2. Continue upscaling efforts for RE appliances for domestic applications: Despite several government programmes, villagers are yet to get adequate lighting and clean cooking fuels. Few interventions of solar lights under this project have replaced kerosene lamps and lanterns; replaced traditional Cookstoves with improved Cookstoves and people appeared to be happy with these interventions, and made financial investments. Thus showcasing readiness for market to absorb such interventions. Significant efforts are essential to upscale RE appliances for domestic applications.

7.3. Support initiatives of clean energy for thermal applications: Thermal application encompass Cook stoves heat applications for enterprises. There are many interesting examples and designs among improved Cookstoves and gasifiers for process heat applicaitons. Gasifiers for some applications such as textile processing, food processing have been proved viable options. They have potential to reduce the biomass consumption by 50%, replace fossil fuels such as LPG, furnace oil, kerosene, etc. They have also been able to provide improvement in quality in many instances. In some countries cook stove projects were implemented at larger scale and globally there is interest in at more such opportunities. Efficient stove programme have a great potential for GHG emissions reduction, particularly as scientists are paying more attention to black carbon.

25% of primary energy in India is used in the form of biomass largely feeding as fuel for cooking and some in unorganized enterprises. Most of these devices used for cooking run at very low efficiency, just by doubling their efficiency it can lead to reduction in energy significantly and reduce the stress on forests from where often biomass is harvested unsustainably. Though the designs for thermal gasifiers are matured, awareness, packages suitable to different capacity, different end uses; technical assistance, supply chain are yet to be provided on sustained basis.

7.4. Off grid solutions to electricity generation: in the beginning of 11th FYP over 100,000 villages were not connected with electricity. GoI’s concentrated efforts helped to connect most of the villages with electricity. However, there are significant number of villages which are


still not connected. Some estimates indicate, over 300 million people still do not have electricity. It is important to ensure that they get minimum electricity of 1 kWh per family per day (minimum standard set forth in Rural Electrification Policy). 1 kWh per day per family can only provide electricity required for domestic applications, not much for productive uses. However, even this is important to start with. Significant efforts are required to ensure this to happen. Also assuming 300 million people, 5 persons per family, 1 kWh of electricity required per day, it would translate to 21.9 billion kWh of electricity per year. Assuming 0.82 kgCO2 per kWh as emission factor, it results into 20 million tCO2 annually. At the outset, looking at potential for renewables, it appears that this requirement can be met by Renewable Energy alone.

Cumulative Installed Vs Estimated potential Renewable Energy Capacity in India

Resource Estimated Potential (MW) Cumulative till Sept-12Wind power 48,500 18,192

Small Hydro Power 15,000 3,447Bio Power (including cogen) 23,700 3,359

Solar Power 20-30/sqkm 1,04587,200 26043

Leaving out wind which primarily goes to grid, a significant portion of 31,000 MW potential exists for local harnessing from small hydro and biomass power. When solar is added, the potential (at 20 to 30 MW per square kilometer) exponentially increases. Assuming, 1 MW can generate 2.7 MU per year. To generate 21.9 billion kWh, approximately 8000 MW of installed capacity working at 30% PLF is sufficient. A low PLF of 30%, as experiences till now have shown this percentage specially for the small scale non industrial biomass power. Further Solar and micro hydro by nature of availability of resources can deliver at best 30% PLF. At the outset, it appears that all the additional electricity required can be met by just 25% of renewable resources available. However, the infrastructure, resource availability, availability of technology packages, enabling financial structure to provide healthy field vs conventional grid, etc. are essential. The next phase of UNDP can take up efforts in this direction as it directly addresses the mandate of UNSG initiative ‘Sustainable Energy for All’ (i) Energy Access for all by 2030, (ii) doubling share of renewable by 2030, and (iii) doubling energy efficiency by 2030.

7.5. Focus on RE linked income generation: During the current phase, not much has been done to link Renewable Energy as driver to


provide energy to income generating activities. The next phase of UNDP-MNRE projects should test various models of linking RET to accelerate Access to Clean Energy with livelihood and income generating activities. The pilot testing should preferably be carried out in states/locations where ACE or similar programmes have successful pilots, as it can help kickstart interventions. This would serve as a logical next step activity for widening the base for the entrepreneurs, SHG, NGO who have undergone training on benefits of RET.

7.6. Support Global Energy Access Centre [GEAC]: GEAC is conceived to provide infrastructure and nodal support to MNRE and other agencies in the country in the area of Energy Access and dissemination of Renewables and expand the support to other countries. This is an important initiative and UNDP must consider collaborating with GEAC appropriately to leverage the support to their ongoing initiatives and contribute to strengthen GEAC as well.

7.7. Standardisation of RE product and communicating it to customer to make informed choice:

As State Nodal Agencies (SNA) are actively promoting some of RETs such as solar photovoltaic lights using Light Emitting Diode (LED) in their respective state, there is wide variety of products with differing configuration are available in the market having different prices. However, a buyer is not aware if these RET meet any standard – Indian or International. Also, since the sales of RET are picking up, there is an urgent need to regulate the market through Standards and awareness campaign so that consumers get product of good quality.

Bureau of Indian Standards has specified standards for LED and LED based products in IS No. 16101- 16108 : 2012; and standard for tubular lead-acid batteries in IS 13369:1992. For future pilot demonstration projects MNRE and UNDP should make mandatory the compliance of Indian standards for devices and products used in these projects which project proponents demonstrating SPV based lighting technology should be asked to comply with. Independently MNRE may issue directive for compliance with above referred Indian Standard to the channel partners and vendors registered in its SPV programme, and to all the SNA to make compliance to Indian Standards a mandatory requirement in all future procurement starting sometime, say, during the next financial year 2013-14. This methodology will help in avoiding sub-standard and low


cost products being sold that have higher likelihood of failure and will send the signal in the market for adhering to Indian Standards.


2. INTRODUCTIONThis report is prepared to capture progress of UNDP MNRE project on “Access to Clean Energy”. The project was implemented by the Ministry of New and Renewable Energy (MNRE), Government of India. The geographical area of project covered primarily United Nations Development Assistance Framework (UNDAF) states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh. The project, in partnership with the Ministry of New and Renewable Energy, Government of India, aims to enhance access to clean and renewable energy for livelihoods in remote un-electrified villages in the selected seven United Nations Development Assistance Framework states of India.

The report presents the summary of various project deliverables, including management structure, Annual Work Plans, current status of select pilots supported under ACE and, in the end, provides recommendation for new programs and to increase the impact of UNDP-MNRE programme.

2.1 BackgroundAs per the Working Group report of 11th Five Year plan released in 2007 prior to the official commencement of ACE program, approximately 135,000 villages throughout India did not have access to grid electricity2. Further, it was estimated that close to 18,000 villages would not have access to grid electricity anytime in the near future. The requirement of energy is to serve two basic needs. First, energy is needed for lighting or illuminating the interiors of a house to complete the daily routine activity. Second, greater amount of energy is also rcooking of meals, at least, twice a day. The common energy source to fulfill the lighting requirement is kerosene which has a well established distribution mechanism in place with Public Distribution System (PDS). In comparison, the energy required to cook meals is much greater and very few villagers use kerosene based cook stoves due to the cost involved. Thus, biomass remains a major source of meeting energy requirements of a rural household throughout India, particularly in rural areas where about 75 percent of households rely on it for cooking.

However, the continued dependence on biomass is putting an increased pressure on the country’s local environment and micro climate. At the same time, several initiatives of GOI such as the introduction of Liquefied Petroleum Gas (LPG), kerosene and biogas in rural households have also had limited success in rural areas because of high cost of supply, lack of steady supply and accessibility.2 Working Group on Power for 11th Plan report: Section 3.7.1 – Progress of Rural Electrification During Xth Plan


India experience shortages of around 10% between electricity demand and supply. There is increasing demand on petroleum fuels (natural gas and liquid products) by various sectors which directly contribute to economic activities of the country. To sustain the economic growth, reducing the energy demand supply gap becomes part of government’s top priorities and it focuses on those few sectors. Thus the rural areas continue to suffer from energy shortages which far exceed the average and uncertainty regarding the improvement in situation. Therefore in such circumstances, rural areas have little choices but to increase their reliance on natural resources to meet their energy needs. Adoption of renewable energy sources such as small hydro and wind turbines, biomass gasification based power and solar energy (lanterns, home lighting kits, mini grids) is becoming feasible to meet the growing basic energy needs of a majority of the rural population.

Renewable energy technologies besides being environment-friendly have been found to bring about a change and well-being in the lives of people in the rural areas who are identified to be those forming the bottom of pyramid. To increase the foot print of renewable energy technologies pilot projects demonstrating the technologies, business models that make use of renewable energy sources to generate electricity have been set up across the country. These pilots face various challenges of scale up and therefore require innovative approaches during the initial period and also the support of key stakeholders.

2.2 ObjectivesThe ACE project aims to enhance access of rural households to clean and renewable energy in remote un-electrified villages of the seven United Nations Development Assistance Framework (UNDAF) states and explore possibilities of generating livelihoods.

The ACE project is supporting pilot programmes in select locations in seven UNDAF states with an objective of identifying success stories and replicate lessons learnt to upscale and develop a national strategy on accelerating clean energy access. The project also seeks to develop a Renewable Energy Service Company as a viable business model and train key implementing and monitoring officials/professionals.

2.3 Project BriefNational priority as per 11th Plan: Building environmental concerns into the country’s development strategy.UNDP CPAP Outcome: Progress towards meeting national commitment under multilateral environmental agreements.


CPAP Output: National efforts supported to leverage environmental finance to

address climate change, biodiversity, land degradation and chemical management issues.

Partnerships and capacities developed to meet the national commitments under the Multilateral Environmental Agreement

Specific project outputs: Framework developed for inclusive planning and delivery of clean

energy services. Options explored for partnerships and leveraging financing Inputs provided for the environmental and climate policy regimes

Implementing Partners: Ministry of New and Renewable Energy (MNRE)

The project will support national actions to mitigate greenhouse gases (GHGs) and address climate change while meeting the national development objectives. It will strengthen the information base and institutional capacities, leverage international and local financial resources and develop strategic partnerships for implementation of the National Climate Change Action Plan. Particular focus is on (a) access to clean energy, (b) knowledge management.

2.4 Situational AnalysisSupporting National Development Objectives and mitigating climate change

Use of energy resources, especially those based on fossil fuels, to meet the increasing energy demand contribute to rise in emissions of various greenhouse gases (GHGs), which are the major contributors to climate change. India, with large population dependent on natural resources and climate sensitive sectors, is highly vulnerable to the potential impacts of climate change.

Access to clean energy is an important ingredient of any energy and development policy with a direct bearing for GHG mitigation. Efforts would be undertaken under the project for direct interventions towards accelerated access to energy services particularly for increasing livelihoods of the poor and marginalized in at least 350 remote villages in the UNDAF states.Accelerating Access to Clean Energy

Based on a review of the existing policies, successful model/pilots within and outside the country, a framework would be developed for inclusive planning for the select geographical areas wherein access to clean energy services is low. In addition, pilots to help fill the gap to existing experiences will be developed. The project will centre on the following components in at least


four UNDAF states Chhattisgarh, Jharkhand, Madhya Pradesh and Orissa – based on prominence of the energy access issues.

The intermediate activities with expected outcomes that would provide inputs to formulate a policy for Accelerating Access to Clean Energy are mentioned here

Design a framework to address gaps and up-scale clean energy technologiesBased on a review of existing policies, schemes and programmes, a feasible framework for up-scaling clean energy technology intervention in the identified districts in the relevant states will be designed. To facilitate the process at the national level, an ‘Advisory Committee’ will guide and advise the program, and at the grass roots local committees or ‘Urja Sanghatan’ will be set up.

Support to upscale implementationThe project will up-scale implementation through provision of technology packages, strengthening supply services (manufacturer development), demand development (by facilitating livelihoods), awareness, capacity building and skill development. The project activities will be part of and get amalgamated with district energy plans. The activity may thus be integrated with district development plan of governance programme. Development of Renewable Energy Service Company (RESCO) as energy providers / managers will be explored. Capacity building of Panchayats and communities will be focused on making informed choices for participatory energy interventions as well as link them to livelihood generation. As women are the main managers of domestic energy, a special emphasis will be their inclusion in the decision making processes.

Development of National strategy for “Accelerated clean energy access”The lessons learnt from the interventions shall be analyzed, reviewed and debated through the platforms of workshops, symposia, field visits and Solution Exchange. The learning will serve as inputs to the process for developing a national strategy for “Accelerated clean rural energy access”.

Project DeliverablesRural Energy Access Advisory committee formed and current scenario reviewedAn Advisory Committee will be constituted comprising experts, practitioners, and representatives from MNRE and UNDP. A review of national policy and schemes based on desk review, visits to the field sites and stakeholder’s consultations will be done to understand the present activities in the area of rural energy access, progress of mainstreaming clean energy devices.

Urja Sanghathan formulated to build in grass root the activities in participating districts


Within the participating districts the village panchayats will be selected based on different set of criteria with higher importance to the energy related parameters. The core group or ‘Urja Sanghatan’ with members from interested user group with equal participation of women and village panchayat members, relevant line agencies, members from technical and institutional support system will be formed to design, implement and monitor the interventions and act as knowledge disseminators.

Capacity building of Urja Sanghatan and Training of Trainers for rural franchisee The Urja Sanghatan is sensitized on plan preparation and elements of interventions of an “Engendered Participatory Energy Intervention Plan”. This will be done through exposure visits, training, etc. Relevant regional training centers (Administrative Training Institute, State

Developing communication strategy to disseminate the learningThe project is expected to provide inputs on questions of viability of modern energy devices and its impacts on the quality of life, role of alternate energy in generating electricity, analysis of gap funding/fiscal incentive to run the small renewable energy projects feasibly, review the policy on rural energy and provide inputs. It also would have demonstrated three different models for electricity generation, distribution, experiences in running them and elements to sustain them. A socio-environmental, techno-economic assessment of interventions will be carried out to understand the impact from the project in the area. All these learning’s will be documented through different print and visual media and communicated on appropriate forum. These lessons will also be shared on the UN Solution Exchange platform appropriately. Special focus will be laid on document gender related learning.

The steps followed for programme implementation, deviations and the outcomes of ACE project are presented in the table below:

Table1- ACE Project Targets: Planned and ActualProgramme Target Deviation OutcomesReview existing policies, pilots and experiences

None Two compendium capturing details of pilots and experience of renewable energy projects were prepared. 3000 copies of Access to Clean Energy – A glimpse of off-grid projects in India, (Attachment 1) and 2000 copies of Empowering Rural India the RE Way (Attachment 2) were distributed. These are available on UNDP website for future reference.A background document on the ‘Global Energy Access Centre (GEAC),’ was


prepared. (Attachment 3)Design framework for inclusive planning and implementation in 350 villages

Target number of villages revised to 35

Project Steering Committee (PSC), with representatives from MNRE and UNDP approved the guidelines and procedures for management of funds & due diligence process for selection of proposals. The Annual Work Plans (Attachment 4) were finalized to support implementation of projects activities based on the requirements and priorities.

Pilots to address gaps and up-scaling

None Seven RET projects received MNRE grant sanction to demonstrate innovative technology, business models, market development and scale-up. Details in Chapter 3

Inputs for a policy on Accelerated Access to Clean Energy

None Renewable Energy Plan for Chhattisgarh and Odisha (Attachment 5) and National Strategy for Accelerated Access to Clean Energy (Attachment 6) prepared.

2.5 Management Arrangement The management arrangement would have a Programme Management Board (PMB), which is an oversight body co-chaired by the UNDP and the Department of Economic Affairs that will administer the overall outcome and delivery of the Energy and Environment programme. The PMB will comprise of the concerned ministry, NPDs from the concerned activities and major stakeholders involved in the implementation of the projects. related to the Programme

The Ministry of New and Renewable Energy (MNRE) and the state governments are designated as the Implementing Partners (IPs) for the project. MNRE will partner with state level nodal agencies in the UNDAF states. The IPs would nominate/advise the respective line departments to nominate a senior official as the NPD of each the activities envisaged in the project (one NPD may handle more than one activity).

The NPDs will be responsible for overall management, including achievement of planned results, and for the use of UNDP funds, in each activity under this project. The Implementing Partner will sign a budget for each Annual Work Plan with UNDP, as per UNDP rules and regulations.


Steering Committees: The implementation and monitoring of activities under this project would be overseen by Steering Committees (SC) for relevant Annual Work Plans (AWPs). The SC will be chaired by Secretary/Joint Secretary, Ministry of New and Renewable Energy (MNRE). It will have members from participating states namely, Chhattisgarh, Jharkhand, Orissa and Madhya Pradesh, other stakeholders and UNDP Programme staff.

Project Management Unit: A Project Management Unit (PMU) will be set up for ACE. The PMU will report to the NPD and will be headed by one Project Manager (PM). The PMU will carry out the day-to-day management work to ensure implementation of the project activities. This team of PM and Technical Professionals within the PMU will support the SC. Within the PMU, one PM will manage one AWP each. Funds will be released according to the approved AWP and QWPs.


3. PROJECT PROGRESSThe ACE project began in December 2009 with three-year duration and an objective of up scaling at least 10-15 successful, cost effective, replicable and financially viable entrepreneurship based business and delivery models for deployment of RET that strengthen livelihoods and leads to economic development. Based on the prominence of energy access issues, the project’s geographic coverage included seven United Nations Development Assistance Framework states of Bihar, Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Rajasthan and Uttar Pradesh. Project had four related sub objectives to (a) assist in local capacity building; (b) generate local employment; (c) augment income and livelihood through value-added production; (d) contribute to global and local environmental benefits.

In simple terms, the overall objective of the project was to provide support for pilot projects in 35-50 villages leading to the development of a replicable model or approach, for assisting local entrepreneurs to manage RET applications and provide clean energy access which would help to improve quality of life of rural people.

In line with the Management Arrangement described in section 2.6, a Project Steering Committee (PSC) was constituted with representatives from MNRE, UNDP and CAPART. The frist meeting of PSC took place on July 9, 2010 and approved the guidelines and operational procedures for management of funds, and due diligence process for selection of business proposals. The PSC approved three modes of funding to:a) Support for piloting of innovative RETS and business models with potential for up

scaling. For these projects 100% funding was permitted which was provided by UNDP.

b) Support up scaling of technically proven and commercially viable RET based business models. Support would be from GOI/MNRE funds in line with existing MNRE schemes.

c) Technical assistance for awareness generation, capacity building and research for development and promotion of RET. For such projects 100% funding support would be from UNDP.

In addition to the PSC, Project Execution Committee was constituted with representation from UNDP, MNRE which met on regularly intervals. From time to time representative from SNA were invited to attending PSC. The table below list the PEC and PSC meets that were held during the tenure of ACE programme.

Meeting of Date held1st Project Executive Committee November 12, 20102nd Project Executive Committee March 17, 2011


3rd Project Executive Committee September 5, 20114th Project Executive Committee January 24, 20125th Project Executive Committee March 29, 20121st Project Steering Committee July 9, 20102nd Project Steering Committee December 14, 2010Proposal Review Panel (pilot projects) August 12 2011

A compendium of case studies on ‘Access to Clean Energy – A glimpse of off-grid projects in India’ was released at the Delhi International Renewable Energy Conference 2010, which showcases 26 case studies on gasifiers, biogas, biofuel, cook stoves, solar photovoltaic, solar thermal and other renewable energy sources

Annual Work Plans for all the three years of project operation starting from 2010 are included in Attachment 4. The pilot projects supported under ACE are described in detail later in the Chapter 3.

3.1 Project OutcomesThe project targets are mentioned in Table 1 in the previous section. The scope and coverage of the deliverables / outcomes that were developed as per the specific requirements of ACE are described briefly here. The full reports are included as annexure and can be downloaded.

A compendium of case studies on ‘Access to Clean Energy’ (included as Attachment 1) has information on 26 off-grid projects on gasifiers, biogas, biofuel, cook stoves, solar photovoltaic, solar thermal and other renewable energy sources. A number of them have been awarded the prestigious Ashden award. Many of these projects are path- breaking efforts, trying to match the needs of villagers, small businesses, local residents with available local resources at an affordable price and green technology and culminating towards safeguarding the environment. The compendium which showcases 26 case studies amongst the best in India was prepared by Winrock International India and released at the Delhi International Renewable Energy Conference 2010. About 3000 copies of compendium were distributed.

In October 2012, UNDP and MNRE jointly released a compendium on Empowering rural India the RE way: inspiring success stories of 27 renewable energy projects, at the International Seminar on Energy Access 9-10 October 2012. The compendium provides the experiences of local entrepreneurs, non-governmental organizations, and development practitioners in their bid to provide access to clean energy to the people in rural and remote areas of the country. These projects are based on a variety of renewable energy technologies, specific to regional and state conditions carry tremendous


promise in providing crucial lifeline services to the bottom of the pyramid through energy access. Many cutting-edge practices and pathways act as an instrument in mobilizing communities to take charge of their own development and most importantly aid in livelihood enhancement and poverty reduction. The success stories illustrate good practices and lessons learned in expanding energy access and collating knowledge for dissemination of low-emission technologies, innovative business and delivery models, entrepreneurship, institutional strengthening, and financing. This compendium is included as Attachment 2.

The MNRE has plan to set up a Global Energy Access Centre (GEAC) in India aimed at catalyzing efforts expanding energy access for the poor, in India and globally. India is uniquely positioned in the global energy access map – being among the countries with the largest energy access challenge, while also being a leader among developing countries that have sought to address the challenge through a myriad of innovations and experiments in various areas including renewable energy.

A document on the GEAC, which focuses on policy research, consultancy, capacity building, and a knowledge centre not only for India, but also for sub-Saharan countries and the Asia-Pacific region, has been prepared. The document outlines the functions and responsibilities of GEAC, its institutional structure, funding arrangements and is included as Attachment 3.

3.2 Pilot Projects Pilot projects initiatives were chosen after a rigorous process which led to conversion of ideas and concepts into viable projects with a business plan, revenue model and cost sharing structure to demonstrate business models for further up-scaling. They are categorized into three, namely, innovative pilots, which include concepts that are ready for up-scaling, products that require market development and products that link with livelihoods. Each of these concepts are described below succinctly.

Innovative pilot demonstration projects such as the one supported under ACE, helps to reduce the risk of adopting new technology/service methods by testing them first. A pilot program that addresses a specific product or service line helps to determine whether it fully serves the purpose for which it is set up and what kind of changes are required for its smooth operation. Pilot programs help to identify the overall costs, and they also help to reduce general resistance to adopting new methods or technology.

Scaling-up, that is raising to higher level, involves replication and adoption of project by multiple users at multiple geographic locations. Often time, scale up of technology such as bio-gas plant or solar home lighting system, is


driven with a combination of policy and financial incentive mechanisms. The underlying principle is that technology or a business model is ready for replication and ‘scaling-up’ would help to benefit a large number of users.

Market development requires taking existing products or services and selling them in new markets, which in the present context are the rural areas which are currently not being served by companies selling renewable energy products.

Innovative pilot: Hydro-based power generation (hydrokinetic technology) of about 30 kW with low speed water flow.

Up scaling of renewable:Biomass gasifier-based electricity generating system which will make use of local shrub (Dhaincha) grown on wasteland in Bihar, and provide six-hour electricity supply.

Upscale fuel-efficient stoves (PYRO multi-purpose) for commercial kitchens which use biomass as fuel.

Solar energy operated micro-grids to provide lighting solutions in rural homes. A micro-grid is a portion of a power system which includes one or more distributed generation capable of operating independent from a large utility grid, while providing continuous power to multiple loads and end users.

Market development for Renewable Energy Technology products

Enhancement of market for renewable energy products led by Energy Centers operated by Women (Mahila Urja Kendra) to create Green Energy Block where majority of villages use RET.

Introduction of renewable energy products such as solar LED lights, solar home electrification systems and improved cooking products in villages through Shakti Kendra (Energy Centre).

Promotion of livelihood activities A rural Power Station using Solar Photovoltaics and Biomass gasifier system to provide electricity for lighting solution in rural homes, for operation of irrigation pumps and for operation of a Community Radio Station.

The table in the following page provides a summary of the projects receiving the MNRE support. A brief description of each of these projects is covered later in the report.


Table2 – Pilot Projects jointly approved by UNDP and MNRES.No.

Project Description

Proposed project location

Implementing Agency and contact information

MNRE approval reference and amount sanctioned

1 Setting up of 41 village-level solar photovoltaic micro-grids for providing electricity to households

Block Bangaramau, Distt. Unnao, and block Mallawan in Dist. Hardoi, Uttar Pradesh

Humana People to People India111/9-Z Kishangarh Vasant Kunj, Aruna Asif Ali MargNew Delhi – 110 070Contact Person:Ms. Anne Marie MoellerCell: [email protected]

Ref. 4/5/2010/PMU/ACE dated 26/03/2012Sanctioned amount: Rs 22.35 lacs

2 Setting up of “Dinkar Solar Power Station” to provide electricity to farmers for irrigation, to small enterprises, and to community based radio station

Village Bairi Dariyav, Block Maitha, Distt. Rambai Nagar, Kanpur Dehaat, Uttar Pradesh

Shramik Bharti392, Vikas NagarKanpur – 208 024Contact Person:MrRakesh PandeyCell: [email protected]

Ref. 4/10/2010/PMU/ACE dated 03/04/2012Sanctioned amount: Rs 28.18 lacs

3 Setting up on “One Shakti Kendra” to deploy renewable energy products to bottom of pyramid communities in 20 villages

Distt. Bolagir, Odisha

ONergy (Punam Energy Pvt. Ltd.)1 A, D.L. Khan RoadKolkata 700 027Contact Person: Mr. Piyush JajuCell: [email protected]

4/17/2010/PMU/ACE dated 17/04/2012Sanctioned amount: Rs 22.6 lacs

4 Setting up a 30kW system based on Hydro-kinetic Technology

Village Behta Khurd and Raghunathpur, Distt. Rae Bareilly, Uttar Pradesh

Emerging Energies Private LimitedRegd. Office 810 Phase 3, B-2Mohali 160 059, PunjabContact Person:Mr. Chandan SinghCell: [email protected]

4/9/2010/PMU/ACE dated 17/04/2012

Sanctioned Amount: Rs 20.0 lacs

5 Setting up Green Energy Mandal/ Mahila Urja Center to create cluster of carbon free zone

Distt. Rajnandgaon, Mohalla,Chhattisgarh

Small Scale Sustainable Infrastructure Development Fund (S3IDF)Administrative Staff College of India, Bella Vista, Hyderabad – 500 082Contact Person: Mr. T.L. Sankar Phones: +91406653 4277 / +9180 6590 [email protected] ; [email protected]

4/3/2010/PMU/ACE dated 17/04/2012Sanctioned Amount: Rs 30.72 lacs

6 Creation of Supply chain and streamlining of commercial bank financing for improved wood burning stoves for commercial kitchens

Distt. Ajmer, Rajasthan

Technology Informatics Design Endeavours (TIDE)No. 19, 9th Cross, MalleswaramBangalore – 560 003Contact Person: Ms. Svati BhoglePhone: [email protected]

4/16/2010/PMU/ACE dated 17/04/2012



mailto:[email protected]








S.No.

Project Description

Proposed project location

Implementing Agency and contact information

MNRE approval reference and amount sanctioned

7 Setting up of four biomass gasifier based electricity generating systems to provide electricity to households, micro-enterprises and irrigation pumps

Vill. Galimapur, Block Garkha & Vill. Qutabpur, Block Dariyapur, Distt. Saran, Bihar, and Vill. Ramnagar, Block Murlichapra, Distt. Ballia, UP

Saran Renewable Energy Pvt. Ltd.102, Bajran Market, Mauna Gola RoadChapra, Saran 841 301, BiharContact Person: Mr. Vivek GuptaCell: [email protected]

4/9/2010/PMU/ACE dated 17/04/2012


3.3 Description of Pilot Projects Receiving MNRE Grant Support

This section provides a short description of each of the projects that were approved by the PEC to receive funding support of MNRE and UNDP. Before the project end, in December 2012, a visit was made to the site locations of four projects to assess the progress of pilots being implemented by project proponents. These project proponents were sanctioned grant by MNRE in April 2012 after a three-stage project selection process. The project locations visited were identified in consultation with MNRE and covers those projects which have made progress since the grant was sanctioned.

3.3.1 Humana People to People India (HPPI)

Project BriefHPPI has proposed to install 41 micro-grids of capacity powered by Solar Photovoltaic (SPV) system in villages of four Unnao, Hardoi, Badayun, Sant Ravidas Nagar districts. Each micro-grid will serve maximum 40 households. The micro-grids (MG) will be owned and operated by local entrepreneur who will invest 65% of the total cost of the grid. The remaining 35% cost will be covered by MNRE through the grant support provided to HPPI. Business ModelSupply Chain Mechanism for supply of grid components – HPPI has been working in the project area for the past two years. They found that with nearly 300 sunshine days, the prospects of SPV based micro-grid operating for six hours per day, is a viable option and has good prospects of meeting the light requirements in village household. To secure uninterrupted power supply even on cloudy days, the grid would run on batteries which are



integral part of the MG. HPPI’s experience of installing solar charging stations for solar lanterns in the same area under a different project has yielded good results in terms of acceptance of the technology and revenue model which is described below. The MG has been designed by Minda NexGenTech and it is also engaged in providing technical support in the operation of the grid.Operation and MaintenanceEach micro-grid is owned and operated by a local entrepreneur from the village. HPPI is providing handholding support for the entrepreneur and providing MNRE which provides the 30% subsidy to the overall cost of the micro-grid.

HPPI is providing advanced training for four technical resource persons who are engaged with HPPI in the former project in the same area. Entrepreneurs are trained by the resource persons to operate the MG in the best possible way. Revenue ModelHPPI has prepared the financial estimates for two-years under different scenarios. Based on the assessment, it is envisaged that the project cost recovery occurs in two to three years. The charges levied by the entrepreneur are mentioned below:

(a)charges per household per month: Rs 100 (b)maximum number of household in MG: 40

(c) maximum monthly revenue from MG: Rs 4,000 (d) monthly operating cost of the MG: Rs 500

(e)Monthly surplus: Rs 3,500Sustainability The entrepreneurship based model with involvement of community and revenue model is viable. Scalability PotentialThere is an unmet demand for solar powered illumination in vast areas of Uttar Pradesh as well as in other states due to prolong power outages. It is very likely that this project will generate demand in the villages where the project would be implemented and also in the neighbouring villages. It is very likely that the project could be scaled up in the implementation area and possibly replicated in other states.Project ProgressOn December 19, 2012 a visit was made to Humana People to People India’s (HPPI) project sites in village Atardhani, Bangarmau in Unnao district and villages Bhulbhawanipur in Mallawan block and Ruknapur Madhuganj block, district Hardoi in Uttar Pradesh.


This project of setting up microgrids is being jointly implemented by HPPI and Minda NexGenTech Limited. The objective of the project are:

To provide quality illumination based on clean energy to rural households in underserved areas

Introduce simple, financially and technically viable solar lighting systems, which are easy to install, easy to handle and affordable to small entrepreneurs, business owners and SHGs

Conclude on the business approach and develop more suitable models of MGs of various capacity, cost and financing schemes.

The mini grid consists of (a) a Solar panel with capacity of 240 watts; (b) Solar charge and grid controller with timer; (c) Battery designed as per the requirement; (d) Distribution point with main switches; (e) Aluminum wiring of 1,000 metre for power distribution to the houses. A meeting with local entrepreneurs and users of this min-grid was held for feedback. While the users pay a monthly charge of Rs 100, they are satisfied with the LED based two lights and a mobile charging point that are provided to the subscribers. The entrepreneurs mentioned that the main issue is the requirement of having 30 to 35 subscribers ready for installing the system which is becoming a major weakness of this system. A discussion on the option of downsizing the grid was held with Mr. Brejesh Kumar of Minda who joined the HPPI team during the visit. He confirmed that Minda is working out the technical and economic feasibility of a mini-grid with 20 subscribers. Based on the joint discussion with local entrepreneurs, HPPI and Minda it was felt that the team may try out a mini-grid of 20 subscribers, which apparently has greater demand in the region and also it is much easier for entrepreneurs to set up and operate.Interaction with entrepreneurs at other two villages provided feedback on customers satisfied with their lighting requirement being met through mini-grid and also brought out the challenge of expanding or installing new grids due the large base of nearly 40 ready subscribers. It was therefore felt that a scaled down version of the micro-grid with 20 subscribers would have greater acceptance and need to be pilot tested under this program.

3.3.2 Shramik BhartiProject Brief


Figure 2Grid Controller (grey) and distribution point (yellow) at

Atardhani village, Distt. Unnao (U.P)

Shramik Bharti a Kanpur based NGO has proposed to set up Dinkar Solar Power Station consisting of a 10KW SPV and 24kW rice husk gasifier. With about 300 sun shine days in a year, the station will depend on producer gas from rice husk to generate power during remaining 65 days. The expected use of power generated will be for supply to households and select shops/enterprise in the adjoining village, farmers to run the irrigation pumps, and for the community radio station operated by Shramik Bharti. Business ModelSupply Chain Mechanism – The per day requirement of rice husk for the proposed 100% producer gas based gasifier of 24kW capacity is 300 kg for six hours per day of operation. The total annual rice husk requirement is estimated at 21000 kg of 21 tons for 70 days. According to the detailed project report of Shramik Bharti, the mini rice mills functioning with a 3km radius of the project site produce 284 tons of husks annually. The rice husk is available in ample quantity at about Rs 3/kg. Operation and MaintenanceShramik Bharti will develop Dinkar Solar Power Station as a separate commercial enterprise. A team of local youth will be trained to manage the operations of the enterprise.Revenue ModelThe electricity generated is committed to be sold to village households, village entrepreneurs, farmers and community radio station with estimated revenue of Rs 15000 per month. The project is expected to become sustainable from the revenue of the project after second year. After first year of operation the project will explore the possibility of expanding the revenue base by increasing the use of gasifier by adding new users during the period when the power from gasifier is not required by the current buyers.

Expected Monthly Revenue from the project

S.No.

Buyer Commitment Expected Monthly income

1 Self help group – Computerised accounting office of Jagriti Mahila Samiti, the federation of SHGs in Maitha block of Ramabai Nagar District

Jagriti Mahila Samiti Rs 1,000

2 SHG products showroom managed by Jagriti Mahila Samiti

Jagriti Mahila Samiti Rs 1,000

3 Community Radio Station Waqt ki Awaz Rs 4,000


promoted by Shramik Bharti4 Rental service of solar lanterns

to shops and enterprise by Solar Lantern Charging Station

Commitment of 50 enterprises to pay Rs 5 per day

Rs 7,500

5 Irrigation facility to farmers Commitment of 15 farmers

Rs 1,500

Total Rs 15,000 Sustainability The grid power in the project area is highly uncertain, insufficient and unreliable. There are about 15 farmers around the project site who purchase water to irrigate their fields at Rs 80 per hour. The cost of power from diesel generator of 10kVA output comes at Rs 100 per hour. There are more than 80 households and enterprises in the adjoining village which is about 500-metres of the project site. Most of the enterprise cannot be operated after sunset. All the households use kerosene lantern and wick lamps and they are willing to pay Rs 100 to Rs 150 per month to receive the power from Dinkar Solar Power Station. The project has discussed the provision of supplying power with the village SHG and received commitments for revenue for this service. Thus adequate demand exists for reliable power supply in the project’s focus area. Scalability PotentialThe successful implementation of this project will have the following scalability possibilities in the coming years:

Renewable energy powered irrigation pumps will motivate other farmers to install SHGs to install solar irrigation pumps

Solar lantern provided to entrepreneurs on rental basis will create demand for home based solar power system

The successful operation 100% rice husk based gasifier will motivate rice millers around the project to use their surplus rice husk to meet their own power requirements and substitute diesel based gensets.

Project Progress

On December 18, 2012 a visit was made to the project location of “Dinkar Solar Power Station” which is proposed to be setup by Kanpur based NGO “Shramik Bharti” as per MNRE’s sanction 4/10/201/PMU/ACE dated 3rd April 2012, at Bairi Dariyav village in Ramabai Nagar (Kanpur Dehat).


Shramik Bharti owns a plot of land from where it is operating community radio station and solar lantern charging center. The vacant area in the plot is earmarked for setting up rice-husk based gasifier, associated gas cleaning system and internal combustion-engine driven electricity generator, and a 10-kW solar photovoltaic system. These two together constitute the power station. The visit to village provided an opportunity to interact with the sarpanch of the panchayat of the village as well as the self-help groups. These interaction highlighted villagers need for receiving electricity supply to meet the lighting needs so that they can give up the use of kerosene based lanterns. The villagers are willing to pay (anywhere between Rs 100-Rs 200) for a reliable supply which this project would provide. Since the electricity supply is of eight hours duration (grid electricity availability is from 10am to 2pm and 10pm to 2am) therefore every house and few shops in the village are in need to few hours of electricity supply, especially in the evening hours, to carry on with their activities. Currently, the villagers use kerosene to meet the lighting requirements and spend about Rs 120 to Rs 150 per month on it. However, as many have availed the solar lantern on a daily rental basis from Shramik Bharti, the demand for solar lantern which provide clean white light operating on a SPV system is very high since besides the quality of light, the users have realized the operating cost are negligible and they are ready to give up kerosene altogether. Thus demand for clean energy for lighting, at a minimum, is clearly established.

With regard to the progress of the project, Shramik Bharti submitted that they have cancelled the orders placed on Husk power and received the refund of advance paid by them. It has now placed order on Ganesh Engineering Works, Buxar for supply, installation and commissioning of a 24kW gasifer along with producer gas engine, 300 pre-paid meters, installation and commission; and on Gautam Polymers on supply of 10kW Solar PV plant. In addition to the above, the activities have been carried out by Shramik Bharti in preparation of the project are stated. As Shramik Bharti has taken the right steps towards the preparation of the project it was recommended to MNRE that the first installment of 20% may be released which will allow it to proceed with other activities of the projects leading to its commissioning by 31st March 2013.


Figure3 Village Bairi Dariyav which will

receive electricity from RE power station being set up by

Shramik Bharti

3.3.3 Punam Energy Private Limited (ONergy)

Project BriefONergy has proposed to set up One Shakti Kendra (renewable energy centers) to deploy renewable energy products to the bottom of pyramid communities in the rural Odisha covering 20 villages, creating 100 rural enterprises with in the first year of operation. The project will develop a strong network of entrepreneurs who will be trained and empowered to assemble, sell and service the RET devices which will be sold through Shakti Kendra. awareness about RET as well as serve as point of sale of renewable energy devices, training of local people to manage sales and after sales maintenance. The RET products promoted by the Shakti Kendra will be SPV based LED lighting systems, solar lantern, solar home electrification system and improved cook stoves.Business ModelSupply Chain Mechanism: Suppliers identified are SELCO, Barefoot Power for solar products and TIDE for improved cook stoves.Operation and MaintenanceThe Shakti Kendra will establish distribution infrastructure network involving local communities and build trust to manage supply chain. It will train rural entrepreneurs and build sales force and after-sales support network.Revenue ModelRevenue will be based on sales of products, subscriptions for charging stations of solar lanterns and after-sales service support. Sustainability The target communities are villagers with average monthly combined expenditure of up to Rs 300 on kerosene, wood biomass and mobile charging. The demand for renewable energy products can be expected if they are provided at affordable cost and its successful working is demonstrated in the project area. Scalability PotentialONergy aims to impact 1 million lives or about 200,000 households in the next five years. To increase the sales and revenues, they plan to scale up by increasing the number of renewable energy centres and expand into other regions. Structured training programs will be put in place for all micro-entrepreneurs which will ensure that all ONergy representatives have the required knowledge and expertise to carry out after sales service. Project Progress


A visit was made to the captioned project location on December 14-15, 2012. ONergy received MNRE’s support for setting up “One Energy Centre” in Bolangir district of Odisha state for selling clean energy products to people in 20 villages. Bolangir is among the least developed districts of the state. At the time of the visit ONergy team conducted a two-day Entrepreneur Training program for local entrepreneurs, self-help groups and NGO to familiarize them with the products range it is selling and to act as a servicing agents post sale. On June 5, ONergy inaugurated the Renewable Energy Center (Shakti Kendra) in Bolangir which is first-of-its-kind in Odisha. During the inauguration ONergy briefed the participant and invited dignitaries - Director of District Rural Development Authority, Chairman and GM of Utkal Grameen Bank, Dy Director OREDA, Zonal Manager Adhikar Microfinance, Manager XIMB Incubator - and appraised them about the program activities under MNRE-UNDP program. “ONergy’s Energy Center or One Shakti Kendra” in Bolangir became fully functional from August 1, 2012 with two person staff. This office is also registered in Odisha for conducting sales and has received sales-tax number. The ONergy team subsequently took up the steps of identifying project partners – NGO, Self Help Groups and also identified the volunteers. It conducted awareness/demonstration activities at village level August onwards covering 33 villages. The villages were selected based on recommendations of NGOs and SHP and where there are regular electricity outages. ONergy also carried out a market survey in four blocks in August.

Field demonstration of renewable energy technologies/products for awareness creation were carried out in seven blocks of Bolangir district, namely Bolangir, Agalpur,Loisinga, Deogan, Patnagarh, Puintala, Titlagargh: August 21, 2012 onwards. In December 2012, ONergy participated in Sensitization Workshop on Solar PV organized by NABARD regional office in Bhubaneswar (state capital) where participants were senior officials of Regional Rural Banks and Public Sector banks. ONergy has signed memorandum of understanding with 11 local partners (NGO and Self-help groups) to promote and sell Clean Energy products (Solar photovoltaic based lighting systems, improved cook stoves) in villages of Bolangir district.


Figure 5Field demonstration of solar PV based lighting

products at Patnagarh

Figure 4ONergy conducts a two-day training on SPV

products for the Entrepreneurs in Bolangir

Along with Alok Piri and Shreykant Naik of ONergy, a visit was made to four villages where ONergy has sold its lighting products. These villages are Bidighat, Chantimunda, Bargaon and Janakpur in Bolangir block. Interaction with individual in these villages who have bought the systems provided interesting revelations. With few exceptions, all the people who bought these products have access to grid electricity however they continue to use kerosene lanterns due to erratic nature of electricity. After purchasing solar lighting systems they have done away with kerosene usage which is resulting in monthly savings of about Rs 150, as the monthly requirement of 6 liters of kerosene was met in the following way - 2 liter from government’s fair price shop @ Rs 17/liter and remaining 4 liter from open market @ Rs 30/liter. The other interesting facts that came out during the interaction is that having realised that there is no operating expenditure associated with solar lights, some people have started using it more during evening hours to cut down on grid electricity usage, as all have metered connection and receive bi-monthly electricity bills of about .Rs 200. Interaction with the end users also brought out the need for ONergy to hold servicing camp on a quarterly basis, for which they agreed to develop a plan and submit to MNRE-UNDP for information.

A meeting was also held with the General Manager of Utkal Gramin Bank which has a largest reach at village levels in Orissa (far more than any other bank). Utkal Grameen bank provides agriculture-loan which is typically of about Rs 50,000 with repayment tenure of 12-months. The purpose of the meeting was to apprise the General Manager about the UNDP-MNRE’s ‘Access to Clean Energy’ program and activities of ONergy. Given the bank’s reach at the village level, ONergy feels its involvement is crucial to increase the sales as many more people from village will come forward if bank provides loan on the products on the subsidized cost.As ONergy has spent more efforts on awareness creation and training NGO, members of Self Help groups and local entrepreneurs about the merits of solar photo voltaic systems and servicing it, therefore it is behind schedule in meeting the requirements of 3rd milestone of MNRE’s sanction letter Also, there has been no sale at all of improved cook stoves and its focus has been promoting only SPV based products. ONergy agreed to prepare a work plan on the steps it will take to achieve 40% sales target and also to achieve sales target 60% of sales across all categories of products listed in the sanction letter to avail balance amount of grant funds.


Figure 6In Bidighat village, Odisha, the use of

kerosene for lighting in this rural home stopped

completely after purchase of this SPV

lamp

3.3.4 Emerging Energies Private LimitedProject BriefEmerging Energies Private Limited (EEPL) has proposed to set up pilot projects of its hydro kinetic technology for village electrification in two villages in Rae Bareilly district of Uttar Pradesh. The mission of the pilot project is to demonstrate a full business model utilizing technological innovation that harnesses the velocity of water to generate electricity. EEPL has surveyed the area and found a total existing demand of 48kW. To meet some of the demand, EEPL proposed to set up a 2 x 15kW plant which will service over half of the customers in demand and then add additional 20kW after the first year of successful operation. Business ModelSupply Chain Mechanism – The villages proposed to be covered by the project are located directly on the Sharda feeder canal adjacent to an aqueduct on the canal system. Based on the discharge data, the Sharda feeder canal is a perennial channel. According to the local irrigation authorities at least 76m3/s of discharge amount is available over 94% of the year. The existing designed water velocity is 3.8 m/s which match with the required velocity for electricity generation with this technology as per EESL estimates.Operation and MaintenanceThe power plant will be headed by a site engineer holding the full charge of the power plant and reporting directly to the head office of EEPL. The site engineer will be supported by a head office engineer on all technical matters. The staff will take care of the operation, maintenance and record keeping for plant. The plant O&M organization will be headed by a head office manager who will responsible for both operation and maintenance functions on a day to day basis.Revenue ModelThe pricing per 50 watt block is scheduled at Rs 100, a price point established through the survey is affordable for the 80% of consumers (300 households) that have agreed to purchase the power. In the 30kW installation there will be 600 blocks of 50watts. At Rs 100, revenue collection of Rs 60,000 per month is expected and responsibility to collect the monthly revenue will be with village panchayats. The surplus electricity will be sold to local enterprises during the low demand hours of the day and an additional Rs 24,000 will be generated from this power supply in the project area.

Project CostItems Estimated Cost (in


Rupees)Hydro kinetic turbines (2x15kW) 4,02,500Permanent generators with gearbox assembly

4,80,000

Support structure and civil work 4,70,000Inverter and power electronics 5,00,000Switchyard and connecting lines 3,00,000Connecting lines for surplus load 2,00,000Installation expenses 2,50,000Working capital 50,000Total Project Cost 26,525,000

Sustainability The success of this business model depends on the success of the new technology which needs to be proven through this pilot project. Scalability PotentialIt is estimated that 3-5% of the 40,000 un-electrified villages may be electrified with the proposed technology. That indicates the technology has potential to provide power for illumination purpose in potentially 2,400 to 4,000 villages.

3.3.5 Small Scale Sustainable Infrastructure Development Fund

Project BriefSmall Scale Sustainable Infrastructure Development Fund (S3IDF) has proposed to set up Urja (energy centers) which will be used to spread the awareness about RET as well as serve as point of sale of renewable energy devices, training of local people to manage sales and after sales maintenance. Villages and hamlets in the selected block of the district in focus would be examined for electrification status and reliability and feasible RET which can be sold by the energy centre. Suitable RET will be promoted and installed in the villages with an aim of economic and social development. Potential RET identified are SPV based lighting technologies and improved cook stoves for domestic and institutional use.Business ModelSupply Chain Mechanism: The renewable energy sources are adequately available with 300 sushines-days in a year and average insolation 4kW per square meter. The project site location in Mohala block has 530 square kilometre of forest cover. The villagers in the block including residents of


Mohala use fuel wood to meet the requirements for cooking. S3IDF will source the RET and cook stoves from MNRE approved suppliers.Operation and MaintenanceRE device suppliers were not identified, however S3IDF will source the products from MNRE approved suppliers. The actual source from which supply will be obtained will be decided based on the prevailing prices at the time of procurement. For bulk procurement, S3IDF will follow competitive bidding process. Training in RET would be imparted to local SHG’s entrepreneurs who would manage the Urja Centre.Revenue ModelThe monthly expenditure of Urja center is estimated to be around Rs 27,150. If the sales margin is around 10%, it is expected that sale of Rs 5 lakh will provide net margin of Rs 50,000. In addition the Urja center can provide additional services based on the local requirement for income generation to meet its operating expenses. It is estimated that the sales of Rs 2.5 lakh will be achieved in the third year of operation.

Financial Statement of a typical Energy Center for 5 yearsAll figures are in Indian Rupees

Income / Expenditure Year 1 Year 2 Year 3 Year 4 Year 5Income 50%

capacity

75% capacity

100% capacity

100% capacity

100% capacity

Margin of 10% on total sale value of Rs 500,000 per month would be Rs 50,000Total Monthly income on Sales 25,000 37,500 50,000 50,000 50,000

ExpenditureEquated monthly instalments on borrowing

5,650 5,650 0 0 0

Interest on working capital loan 1,500 1,500 1500 1500 1500Rent, electricity, communication

5,000 5,000 5000 5000 5000

Part-time book keeper 5,000 5,000 5000 5000 5000Shop assistant salary 10,000 10,000 10000 10000 10000Total expenditure per month 27,150 27,150 21,500 21,500 21,500

Monthly surplus / deficit -2,150 10,350 28,500 28,500 28,500

Sustainability Although the village in the target area are electrified, the coverage and reliability of electricity supply is deficient. The households have traditional cook stoves for cooking meals and kerosene based lantern and wick lamps are used for lighting purpose during power outages. S3IDF estimates that


approximately 500 households will require SPV based devices and improved cook stoves. The cost of the RET and improved cook stoves would be met from a small share by the buyer and the rest as loan from the local banking channel or NABARD. Scalability PotentialBased on S3IDF’s experience, if the Urja Center functions successfully as envisaged, it will get wide publicity for its activity in the block and district and through all possible medium, then scalability potential is high.

Project ProgressVisit to S3IDF’s project site in Mohala block, District Rajnandgaon, Chhattisgarh: A visit to the project location was made on December 13, 2012. S3IDF has been sanctioned financial assistance by the Ministry of New and Renewable Energy (MNRE) for setting up “Women Energy Centre” to create cluster of Carbon Free Zones in rural area of Chhattisgarh. This trip was undertaken with joint consent of MNRE and UNDP to gauge and record the progress of work carried out by the grant recipient.

From the time the grant was sanctioned by MNRE on April 17, 2012, S3IDF team made several trips to Mohala block and district headquarter Rajnandgaon and interacted with government officials in these locations as well as with village councils (aka gram panchayat) and also locating space for a project office and for setting up Energy Center. The efforts culminated in inaugurated the Energy Center on June 15, 2012 which is run by two women from Mohala.

The progress during the months of July and August was slow due to heavy monsoon rains and activities started pickup from September onwards. Since the setting up of the centre, S3IDF’s team from Hyderabad has done extensive work with local panchayat (village councils), sarpanch (elected head of village councils), Block Development Officer of Mohala block, district Collector of Rajnandgaon to create the awareness of the energy centre, ACE project as well as promoting solar based lighting products and improved cook-stoves. As per the sales records S3IDF has accomplished the targets of the third milestone set under the MNRE sanction and the project is on-track to achieve its targets in the first quarter of 2013.


Figure 7Women Energy Center at Mohala, Distt.

Rajnandgaon, Chattisgarh

Figure8Energy Center operated by

Women in Mohala, Chhattisgarh sells RET products and improved

cookstoves to villagers in the Mohala block

The Mahila Urja Center or the Women Energy Center is run by Ms. Nisha Thakur and Ms Parvati Joshi both of Mohala. The center functions from morning 8am until sunset and receives curious visitors making inquiries and buyers from surrounding villages as well as adjoining block of ‘Chowki’. The center has display of small SPV based study lamp, street light, hawker light and improved cook-stove for households. Ever since, the Urja center has received order for supplying street light from Block Development Office, Sarpanch, the news of center and products available has spread in the remote villages in the interior parts which we were cautioned from visiting due to security reasons.

Along with S3IDF staff Ms Shehnaz Parveen and Amit Deshpande, a visit was carried out to four villages where S3IDF has sold (and installed) street lights to ‘panchayats’ (village council) and installed them at a location decided by the panchayat. The villages visited were Dhobeydand, Kadey, Mobhatta, and Gotatola in Mohala block. Interaction with villagers in these locations and also village ‘panchayat’ members and head of village council (aka ‘sarpanch’) who have bought the systems provided useful insights. All the villages visited have access to gird electricity with houses having metered connection. However, there is no street light operating from grid electricity. Consequently the sarpanch in each of these villages used their discretionary development funds, with all requisite approvals, to install a street light. Three months later the villagers are pleased with the decision to installation as it provides sufficient illumination for villagers to gather every evening and socialize while children play till later hours every evening, which was not the case in the past. Few have bought solar lighting systems which helps them to continue with their work during the case of power outages. What is of interest and an important learning is the fact that while Chhattisgarh is a power surplus state and the instance of power interruptions are of short duration, people are willing to spend some money to buy solar based lighting products, in some cases with loan from local banks, so that they can completely move away from the use of kerosene lanterns. Given the progress of the work, S3IDF in the coming months needs to focus its attention on imparting training to local persons for carrying out maintenance of the systems.


Figure9The Solar street light installed

by S3IDF outside the Block Development office provides

illumination for local resident’s leisure activities after sunset

3.3.6 Technology Informatics Design Endeavours

Project BriefProject aims at up-scaling fuel efficient stoves (PYRO multipurpose stove) for commercial kitchens in Kishangarh and semi rural regions around Ajmer, Rajasthan. The target is to install 200 stoves in two years to meet cooking needs of road-side eateries/restaurants, hotels, sweet-shops and school messes. The cost of stove is about Rs 12,000 and will have a payback period of 8 to 10 months due to savings in fuel consumption.Business ModelSupply Chain Mechanism – The renewable energy resources available in the project area that is compatible with the stove design to use all kinds of woody biomass including firewood, lantana, dung cake, agriculture residue like mustard stalks and corn cobs.Operation and MaintenancePyro Stoves are already manufactured and marketed by Sustaintech India Private Limited (SIPL). Technology Informatics Design Endeavours (TIDE) will work in close association with SIPL and other local partners. A consumer finance partnership has been discussed with BASIX and developing marketing partnership with other interested organizations. TIDE has negotiated with Frontier Markets, a rural distribution company, for collaboration in distribution and marketing of cook stoves.Revenue ModelThe average selling price of institutional cook-stove will be Rs 12,000 per stove. Current estimates for project’s viability is a monthly sale of 20 stoves with an average center cost of Rs 75,000 per month which includes expense towards rent, manpower cost for four people. Stoves sold through other linkages would contribute to profit of the centre.Sustainability Conventional stoves cost Rs 2,000 but these are highly inefficient in using fuel with a combustion rate of 8 to 10 kg/hr. Also, the cook and often customers are exposed to heat and smoke from these stoves. PYRO multi-purpose stove saves 40% of firewood in addition to being smokeless and has a life of seven years. Although the cook stove costs Rs 12,000, based on TIDE’s experience, it helps to save Rs 150 per day with a payback period of less than 4 months. The pay back analysis does not include the savings that arise from electricity as fan is not required in this cook stove. Scalability Potential


Replicablility of the project for small-scale commercial kitchen seems to have a good potential for replication with the advantage of PYRO stove compared to conventional stoves and low operating costs. DPR estimates the total market size of multi-purpose stoves in Kishengarh block to be 400 to 500 units. Thus, once successfully established then replication potential of improved cook stoves is very high.

3.3.7 Saran Renewable Energy Private Limited

Project BriefSaran Renewable Energy (SRE) has proposed to generate and supply electricity by setting decentralized power plants using biomass gasifier technology. It will also grow biomass which will serve as feedstock for the power plant. SRE proposes to set up a 32 kW power plant at Galimapur, 24kw power plant in Qutabpur and two units of 32kW in Ramnagar in Ballia district in U.P. The project aims to reach 3,500 households in 12 villages of Bihar and U.P. states. SRE will educate the farmers on how to grow the crop (feedstock) for the gasifier and guarantee purchase of the biomass grown.Business ModelSupply Chain Mechanism: SRE has begun the plantation on wastelands growing a local shrub in water logged area and having plantations within 5km of power plant location. The main biomass planned to be used for the power plant is available 6 to 9 months, corn cobs about 5%, bamboo 5% and tree branches 2 – 5%. For a 32kW plant, 110tons is indicated as the annual requirement of biomass. With an estimated yield of 10 to 15 ton/acre/year and availability of at least 15 acres of plantations for each power plant as indicated in their DPR, the need for biomass is easily met.Operation and MaintenanceThe power plant is expected to supply power for six hours each day and 325 days per year..Revenue ModelThe power plant can provide electricity for lighting in households and shops at Rs 75/month for 6 hours daily supply as against a monthly expenditure of Rs 120-to-150 on kerosene. For irrigation pump-sets of 3hp rating, the cost of power would be Rs 60/hour as against Rs 120 to Rs 150 spent by villagers on diesel based pump-set. . Sustainability


Business model proposed by SRE is viable based on the estimations as the cost of energy service is lesser than the current expenditure incurred by the community in the project area. Scalability PotentialThe project can be scaled up by settings plants in the areas where there is electricity scarcity and wasteland exists which can be used for growing biomass.

3.4 Workshop in Patna Discussion PointsIn March 2010 a one-day workshop was held in Patna. UNDP is supporting a project titled ‘Access to Clean Energy’ with MNRE as IP – Implementing Agency and Winrock International India (WII) as RP-Responsible Party. The project aims to support innovative initiatives of models that can convert BAU grant based project to business models by filling some gaps. These projects leverage the experience of earlier pilots across the country/abroad and provide inputs to large scale replications/up-scaling and eventually provide inputs to MNRE to formulate “Rural Energy Policy”. The initiatives are focused in UNDAF states, however has provisions to knowledge gathering from other states. In this regard the project aims at (i) identifying and supporting projects that promise business models; (ii) document status of RE in UNDAF states; (iii) document successful case studies; and (iv) develop roadmap for rural energy policy.

The response for call for Expression of Interest for potential business projects came mostly from national level NGOs. About 45 proposals were received and 25 of them were shortlisted. The shortlisted concepts would be supported to develop DPR/PDD – Detailed Project Report/Project Design Document. To generate interest from grass roots NGOs and entrepreneurs, a one day seminar was organised at Patna. A simple advertisement in local language was given out. Over 140 people representing about 70 NGOs participated in the seminar. Mr Sukumaran described the project from MNRE perspectives. Dr S.N. Srinivasan highlighted key questions of inadequacy in dealing with Renewable Energy (RE) and its productive uses and RE based business models. He explained two case studies, BERI as potential renewable based electricity generating enterprise and Vijay Engineering Enterprises as service provider of RE products for thermal applications, enterprise of supply of sized biomass, and acting as Renewable Energy Service Company.


Representative from WII explained step-by-step process of the EOI leading to project selection. Representative from ‘Husk Power’ described how they are able to provide electricity on pure revenue model through husk based gasifier in 65 villages (including those which are grid connected) in the states of Bihar and UP. They are able to recover fully operational cost but have not loaded the project management costs on the clients.

Workshop OutcomeThe purpose of the workshop in Patna was to (a) create general awareness about the ACE program and its objectives; (b) mobilize response from grass root NGOs; and (c) Include livelihood NGOs in the ambit of the program along with NGOs working on renewable energy.

3.5 Training Manual on Clean Development Mechanism

The Clean Development Mechanism, one of the three mechanisms in the Kyoto Protocol has been applicable to developing countries and provided financial incentive for their contribution in reducing the greenhouse gas emissions. The price of emissions reduction was linked to the market as developed countries that had specific targets to reduce their emission level, purchased the emission reductions. This training manual prepared as a deliverable under ACE project is enclosed as Annexure D. However, with the end of the first commitment period in December 2012, the prices of carbon have become too low to provide economic benefit to projects that mitigate harmful greenhouse gas emissions.

3.6 Renewable Energy Plan for Two StatesThe current policy and legislative environment in India has resulted in rapid and impressive investments in deployment of renewable energy for grid-connect power generation. However, attainment of these targets is heavily dependent on the right implementation enablers and the overall context in which it is implemented. These include, current status of energy access and use, level of awareness amongst community, purchasing power/ willingness to pay, access to finance, resource access, network access and, availability of human resources and local acceptance of renewable energy technology driven interventions. The Renewable Energy Plan for the states of Uttar


Pradesh and Odisha –two UNDAF states -has been prepared as a deliverable and is enclosed as Annexure E.

3.7 National Strategy for Accelerated Access to Clean Energy

GOI has set ambitious targets to increase the capacity addition of renewable energy. Attainment of these targets depends upon the implementation enablers from stakeholders that include central and state government departments, agencies, regulators and manufacturers. In case of the RETs, like biomass and hydro there are a variety of challenges and barriers to growth. It therefore becomes necessary to identify and address those key constraints directly sooner rather than later.

The impact of few subsidy driven supports and some innovative financing arrangement in renewable energy sector in the past was seen to be limited mainly due to lack of an integrated approach that dealt with all the issues. If technology outreach is improved, organisational and policy support strengthened, institutional financing encouraged, and all these measures are backed up by strategic training and capacity building efforts, renewable energy can make a significant contribution in meeting country’s energy needs. The report on National Strategy prepared as one of the project deliverable and is enclosed as Annexure F. It describes the strategy and recommendations for dealing with the barriers facing the renewable energy sector and help in accelerating its scale up to meet India’s domestic target for clean energy access.

3.8 List of NGOs in UNDAF States Bihar Name of the Organization Husk Power Systems Pvt. Ltd.

Saran Renewable Energy Pvt. LtdSolar Alternatives and Associated ProgrammesIndian Grameen Services (Basix)TARU-MITRA Students’ Forum For EnvironmentGramin Evam Nagar Vikas ParisadYogiji Sewa SansthanDESI PowerBihar Development TrustNidanBihar Rural Livelihood Promotion SocietyIKARD


ChhattisgarhName of the Organization: Vandarshan Samajik Sanstha

Shakambhari FoundationVikas MitraSociety for Integrated Development & Research AssistanceJANPAHELIJijeevisha SamiteeGramin Vikas Trust

JharkhandName of Organization Jan Sewa Parishad

Krishi Gram Vikas KendraSamaj Seva SamityConsortium of Human Enlargement and Technology Nature AssociationCitizen FoundationLohardaga Gram Swarajya Sansthan

Madhya PradeshName of the Organization Towards Action & Learning

Deendayal Research InstituteParyavaran Sanrakshan Evam Aadivasi Vikas KendraGramodyog SansthanSatguru MissionAsha Gram Trust

OrissaName of Organization Gram Vikas

AGRAGAMEEBharat Integrated Social Welfare SocietyCTRANSPARDAPeople's Institute for Participatory Action ResearchJanamangal Mahila Samiti

RajasthanName of Organization Barefoot College

PRAKRATIK SocietyCentre For Development CommunicationsSurya Chambal Power LtdMahila Evam Paryavaran Vikas SansthanHanuman Van Vikas SamitiPrayatna SamitiLok Kalyan SansthanGramotthan SansthanGramin Mahila Vikas SansthanAction for Food ProductionSamagra Vikash Sansthan

Uttar PradeshName of Organization Tarai Environment Awareness Samitee


Centre for Industrial and Management ConsultantsMicro Energy Research and Implementation SocietyKanpur Gaushala SocietyGreen SocietySarvodaya Gramodyog Seva SamitiManav Seva SansthanVikas Udyog SamitiDevelopment Association for Human AdvancementPACE (Participatory Action for Community Empowerment)Sarvodaya AshramAsha Gramothan SansthanManviya Dristhtikon Seva SamitiNational Association for Voluntary Initiative and CooperationJyoti NiketanSolidarity of the Nation SocietyBarh Evam Pradushan Pidit Kalyan SamitiVikas Dhara Mahila Sansthan


4. CONCLUSION AND RECOMMENDATIONS

4.1 Conclusion The ACE project began in December 2009 with three-year duration and an objective of up scaling at least 10-15 successful, cost effective, replicable and financially viable entrepreneurship based business and delivery models for deployment of RET that strengthen livelihoods and leads to economic development. Based on the prominence of energy access issues, the project’s geographic coverage included seven United Nations Development Assistance Framework states of Bihar, Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Rajasthan and Uttar Pradesh.

The overall objective of the project being providing support for pilot projects in 35-50 villages leading to the development of a replicable model or approach; for assisting local entrepreneurs to manage RET applications and provide clean energy access which would help to improve quality of life rural people. Project’s four related sub objectives are to (a) assist in local capacity building; (b) generate local employment; (c) augment income and livelihood through value-added production; (d) contribute to global and local environmental benefits.

The overall objective of ACE project to increase the penetration of RET is relevant for India as it continues to face perennial power shortages and myriad challenges in finding solutions for providing clean energy to all its citizens. For such a daunting task programmes such as ACE help GOI in finding possible solutions by means of pilot projects which test the validity of a hypothesis, provide proof of concept which become useful in future policy formulation or give direction to programmes with similar objectives.

While scaling up from pilot project is a challenge in itself, the importance of these pilot projects remains in the fact that these field trials serve as important milestones indicating the right approach and direction to be followed to avoid costly mistakes. The MNRE’s attempt to accelerate the use of RET is also an attempt to transform a market which supplies energy, and also to transform the way clean energy is used to meet the basic needs of modern day living.

Based on the review of reports that were submitted to UNDP and MNRE as part of project deliverables, the project has followed all the steps and


procedures set forth in guidelines, and at the time of project closure all the project deliverables have been achieved.

Regarding the pilot projects planned under ACE, it is observed that the overall time spent at various stages of project selection, such as soliciting response from project proponents and finalizing the DPRs for providing support, was 50% of the duration of ACE project. Consequently the project proponents were asked to scale down the project duration and project cost to fit into the available time of eight months of ACE project. The project targets, however, were not scaled down to match the available time. Consequently, due to reduction in available time and financial support more than 50% of the approved pilot projects were unable to go beyond the first milestone defined in the MNRE’s sanction letter and carry out the intended activities to reach completion at the time of ACE closure.

Typically pilot projects, such those being supported under ACE test new concepts and business models, and thus face unforeseen challenges over and above the identified risk factors. Therefore they require flexibility in implementation and financial support and longer gestation period before results are visible. The process of selection and approval of pilot projects should follow a firm time table and need to be awarded with in a fix time frame such that the performance period is not reduced.

Nonetheless, the interim outcome from few of the pilot projects – falling in three categories viz. (a) pilot demonstration of new technology, (b) scaling up of business model, (c) market development - has provided some noteworthy learning which contradicts the common perceptions. For instance, the willingness of people in rural area to use RET is very high as they realize very soon that RET are dependable and no operating cost is involved particularly in case of solar based RET. It also allows them to greatly reduce and in many cases, even stop the use of kerosene. SPV based lighting systems and home lighting systems are being bought by the villagers despite the fact that have access to grid.

Rural households with limited income have come forward to purchase RET as they realize that compared to kerosene, the daily operating expense of a SPV lighting system in nil and the white light is superior to the yellow light from a kerosene lamp. Finally, use of an improved cook stove leads to perceptible reduction in smoke emission and saving in fuel usage even though the fuel wood used is freely available to villagers.

These projects provide two very important leads. First, the use of SPV based lighting products can reduce and even eliminate demand of kerosene for the same end use i.e. lighting. Kerosene continues to receive heavy subsidy from the government, much more than any other fossil fuel and is, therefore, a major drain on GOI resources.


Second, biomass in the form of crop residue (or straw/husk) and woody biomass is the main source of fuel used for cooking purpose in rural area throughout India. The closest alternative is dung cakes which are a much greater source of indoor air pollution due to its burning characteristic. Thus increase in deployment of improved cook stove which is 35% to 50% more efficient as compared to conventional three-stone cook stove which is widely prevalent to do its ease of construction, can in a major way lead to a reduction in use of biomass. The reduction in emission can help to reduce the health incidences among women and children. Increase in deployment of improved cook stove would serve as one of the important component of the effort to reduce the rate of loss of forest cover which are an important ecological and environmental assets serving as carbon sinks.

4.2 RecommendationsBased on the overall progress and achievements of the ACE project following recommendations are being proposed. First five recommendations are general programmatic activities. Remaining five recommendations are for UNDP and MNRE respectively to take up in their ongoing and future programmes.

i. Efforts should be made to continue support to the pilots initiated under ACE project as these are unique and are testing out the challenges for scale up at different locations of India. Those projects which successfully achieve the targets should be provided support for replication in their respective focus areas. A concept should be replicable before it can be scaled up thus this is an important intermediate step for scale up.

ii. Efforts are needed on developing a methodology to assess the impact from such pilots as the learning provide important inputs both to the GOI, SNA, multi lateral agency and other key stakeholders, for replication at other location

iii. Engagement of SNA is important especially when a pilot project achieves its goals and has a track of successful implementation and made impact on the ground for all to see

iv. The monitoring of pilot projects should be carried out periodically jointly by MNRE and UNDP at least once every six months as it achieves (or faces challenge in reaching) milestone.

v. Programme such as ACE which are of short duration should follow a strict timetable so that sufficient time is available for pilot testing of model or concept or hypothesis and gathering, analyzing the outcome which may have bearing on future policy formulation or programme of GOI


vi. The next phase of UNDP-MNRE projects should test various models of linking RET or accelerating Access to Clean Energy with livelihood and income generating activities.

vii. The pilot testing should preferably be carried out in states where ACE has successful pilots. This would serve as a logical next step activity for widening the base for the entrepreneurs, SHG, NGO who have undergone training on benefits of RET.

viii. Given the diverse source of supply of RET, MNRE should plan to develop and implement an awareness creation programme for various SPV products with support of Bureau of Energy Efficiency and Bureau of Indian Standards. Awareness creation programme should put emphasis on compliance to Indian standards for Solar photovoltaic panel, Light Emitting Diodes and storage battery etc, among RET manufacturers and integrator ,institutional and retail buyers will need to be carried for at least two to three years.

ix. Future pilots should be built around hybrid power projects that are combination of SPV lighting systems and biomass gasification for thermal application i.e. to producer gas a clean fuel for cooking purpose in households, rather than power generation.

x. Application of biomass gasification systems for power generation should be demonstrated in small and medium rice mills that are spread in large numbers in several UNDAF states. Currently these rice mills use a sub-standard diesel generating set. The objective of these pilot projects should be (a) demonstration of displacement of diesel, and (b) Environmental Impact Assessment from the use of rice-husk gasification systems for power generation, which apparently requires water for cleaning producer gas.

xi. As SNA are also involved in promoting some of RETs such as solar lights using Light Emitting Diode (LED)s in different combinations, there is wide variety of products that are available in the market having different prices. Therefore there is a need to regularize the market so that consumers get product of good quality For future pilot demonstration projects MNRE and UNDP should make mandatory the compliance of Indian standards for devices and products used in these projects. Bureau of Indian Standards has specified standards for LED and LED based products described in IS No. 16101- 16108 : 2012; standard for tubular lead-acid batteries is IS 13369:1992 which project proponents demonstrating SPV based lighting technology should be asked to comply with. This methodology will help in avoiding sub-standard and low cost products being used that have higher likelihood of failure and also send the signal in the market for adhering to Indian Standards.


For reference purpose the coverage of IS 16101 and IS 13369 is included in the following pages.


Following Indian Standards on LED and LED based products have been published in 2012.

Sl No.

IS No Title

1. 16101 : 2012 General Lighting - LEDs and LED modules – Terms andDefinitions

2. 16102(Part 1) : 2012

Self- Ballasted LED-Lamps for General Lighting Services Part 1 Safety Requirements

3 16102(Part 2) : 2012

Self-Ballasted LED-Lamps for General Lighting Services Part 2 Performance Requirements

4 16103(Part 1) : 2012

Led Modules for General Lighting- Safety Requirements

5 15885 (Part2/Sec 13) : 2012

Lamp Control Gear Part 2 Particular Requirements Section 13 d.c. or a.c. Supplied Electronic Controlgear for Led Modules

6 16104 : 2012 d.c. or a.c. Supplied Electronic Control Gear for LED Modules - Performance Requirements

7 16105 : 2012 Method of Measurement of Lumen Maintenance of Solid -State Light (LED) Sources

8 16106 : 2012 Method of Electrical and Photometric Measurements of Solid-State Lighting (Led) Products

9 16108 : 2012 Photobiological Safety of Lamps and Lamp Systems


Indian Standard 13369 : 1992

STATIONARY LEAD-ACID BATTERIES ( WITH TUBULAR POSITIVE PLATES ) IN MONOBLOC CONTAINER — SPECIFICATION

1. SCOPE This standard specifies Ah capacities, voltage, overall dimensions, performance requirements and tests for stationary lead-acid units ( using tubular positive plates ) in monobloc container.

2 REFERENCES

The Indian Standards listed in below are necessary adjuncts to this standard.

ANNEX A LIST OF REFERRED INDIAN STANDARDS

266 : 1977 Specification for sulphuric acid

1069 : 1964 Specification for water storage

1248( Part2):1983 Specification for direct acting indicating analogue electrical measuring instruments and their accessories

<end of report >


Documents

ACE Closure Report › content › dam › undp › documen… · Web viewThis closure report required extensive document review, numerous interviews, and site visits in many locations