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UNDP–MNRE
Access to Clean Energy
Project Closure Report
December 2012
New Delhi, India
Programme Period: 1 December 2009 to 31 December 2012
contributors to writing the report
v k jain
s n srinivas
sandeep tandon
Project TeamEngagement Period
Project Management Cell - MNREGovernment of India
National Project Director:
Ms.Gauri Singh, Joint Secretary, MNREDecember 2009 to February,2011
Shashi Shekhar, Joint Secretary, MNREFebruary 2011 to December 2011
Tarun Kapoor, Joint Secretary, MNREJanuary 2012 to March 2012
Alok Srivastava, Joint Secretary, MNREApril 2012 to December 2012
National Project Coordinator:
V K Jain, Director, MNREDecember 2009 to December 2012
Consultant
Sandeep TandonOctober 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 ManagerDecember 2009 to December 2011
Amit Dwivedi, Project Associate
Bhupinder Kumar
Manoj Kumar
Yashpal 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 2011
Srinivasan Iyer, Assistant Country Director, Environment and Energy Unit
July 2011 to December 2012
S.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, thanksto 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 RETand 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 initiativecan 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 Contents
1.Executive Summary
2.Introduction
2.1Background
2.2Objectives
2.3Project Brief
2.4Situational Analysis
2.5Management Arrangement
3.Project Progress
3.1Project Outcomes
3.2Pilot Projects
3.3Description of Pilot Projects Receiving MNRE Grant Support
3.3.1Humana People to People India (HPPI)
3.3.2Shramik Bharti
3.3.3Punam Energy Private Limited (ONergy)
3.3.4Emerging Energies Private Limited
3.3.5Small Scale Sustainable Infrastructure Development Fund
3.3.6Technology Informatics Design Endeavours
3.3.7Saran Renewable Energy Private Limited
3.4Workshop in Patna
3.5Training Manual on Clean Development Mechanism
3.6Renewable Energy Plan for Two States
3.7National Strategy for Accelerated Access to Clean Energy
3.8List of NGOs in UNDAF States
4.Conclusion And Recommendations
4.1Conclusion
4.2Recommendations
ACRONYMS
ACEAccess to Clean Energy
ADBAsian Development Bank
AWB-Annual Work Plan
BPLBelow Poverty Line
CAGRCompound Annual Growth Rate
CDMClean Development Mechanism
CPAPCountry Programme Action Plan
EE Energy efficiency
EPCEngineering Procurement Construction
FACEFund Authorization and Certificate of Expenditure
GHG Greenhouse gas
GOIGovernment of India
IEPIntegrated Energy Policy
JNNSMJawaharlal Nehru National Solar Mission
kWhkilowatt-hour
MWMegawatt
MNREMinistry of New and Renewable Energy
NABARDNational Bank for Agriculture and Rural Development
NAPCCNational Action Plan for Climate Change
NGONon Governmental Organization
NPCNational Project Coordinators
NPDNational Project Director
NPV Net present Value
NSMNational Solar Mission
PECProject Executive Committee
PMUProject Management Unit
PSCProject Steering Committee
QWPQuarterly Work Plan
RETRenewable Energy Technology
SHGSelf Help Group
SPVSolar Photovoltaic
SNAState Nodal Agency
UNDPUnited Nations Development Programme
UNDAFUnited Nations Development Assistance Framework
1.Executive Summary
- 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 toprovide clean and renewable energy in remote un-electrified villages of the seven United Nations Development Assistance Framework (UNDAF[1]) states and explore possibility of developing business models for replication throughout India.
- The project set forth with four targets namely;
- Review existing policies, pilots and experiences
- Design framework for inclusive planning and implementation in 350 villages
- Pilots to address gaps and up-scaling
- Inputs for a policy on Accelerated Access to Clean Energy
Activities carried out to achieve the above targets are described in the subsequent sections below.
- Review existing policies, pilots and experiences
Two 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
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.
3.3.GEAC
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.
- Design framework for inclusive planning and implementation in 350 villages
- 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 intothree 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 model
4.1.1.Humana People to People India (HPPI) has proposed toinstall 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 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.
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 UttarPradesh. 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 development
4.1.5.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 technologies
4.1.7.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 asignificant 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.
- Inputs for a policy on Accelerated Access to Clean Energy
- 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.
- National Strategy for Accelerated Access to Clean Energy preparedsuggest 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.
- Lessons
The project provided a few lessons which are described below.