`
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 Team
Engagement Period
Project Management Cell - MNRE Government of India
National Project Director:
Ms.Gauri Singh, Joint Secretary, MNRE
Shashi Shekhar, Joint Secretary, MNRE
Tarun Kapoor, Joint Secretary, MNRE
Alok Srivastava, Joint Secretary, MNRE
December 2009 to February,2011
February 2011 to December 2011
January 2012 to March 2012
April 2012 to December 2012
National Project Coordinator:
V K Jain, Director, MNRE
December 2009 to December 2012
Consultant
Sandeep 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
Amit Dwivedi, Project Associate
Bhupinder Kumar
Manoj Kumar
Yashpal Singh
December 2009 to December 2011
WII Team Members: Kinsuk Mitra, Ph.D ; Ritu Bhardwaj;, Shankar Haldar
UNDP Officers
December 2012
-
December 2009 to
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, 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 CONTENTS
1.
Executive Summary ................................................................................... 9
2.
Introduction .............................................................................................18
2.1
2.2
2.3
2.4
2.5
3.
Background .............................................................................................. 18
Objectives ................................................................................................ 19
Project Brief ............................................................................................. 19
Situational Analysis................................................................................... 20
Management Arrangement .........................................................................23
Project Progress ........................................................................................ 24
3.1 Project Outcomes ......................................................................................25
3.2 Pilot Projects ............................................................................................ 26
3.3 Description of Pilot Projects Receiving MNRE Grant Support ........................ 28
3.3.1 Humana People to People India (HPPI) .................................................. 29
3.3.2 Shramik Bharti .....................................................................................31
3.3.3 Punam Energy Private Limited (ONergy) ................................................ 33
3.3.4 Emerging Energies Private Limited ....................................................... 36
3.3.5 Small Scale Sustainable Infrastructure Development Fund ...................... 38
3.3.6 Technology Informatics Design Endeavours ........................................... 41
3.3.7 Saran Renewable Energy Private Limited .............................................. 42
3.4 Workshop in Patna .................................................................................... 43
3.5 Training Manual on Clean Development Mechanism .................................... 44
3.6 Renewable Energy Plan for Two States ....................................................... 44
3.7 National Strategy for Accelerated Access to Clean Energy ............................ 44
3.8 List of NGOs in UNDAF States .................................................................... 45
4.
Conclusion And Recommendations ............................................................ 47
4.1
4.2
Conclusion................................................................................................ 47
Recommendations .................................................................................... 49
ACRONYMS
ACE
ADB
AWBBPL
CAGR
CDM
CPAP
EE
EPC
FACE
GHG
GOI
IEP
JNNSM
kWh
MW
MNRE
NABARD
NAPCC
NGO
NPC
NPD
NPV
NSM
PEC
PMU
PSC
QWP
RET
SHG
SPV
SNA
UNDP
UNDAF
Access to Clean Energy
Asian Development Bank
Annual Work Plan
Below Poverty Line
Compound Annual Growth Rate
Clean Development Mechanism
Country Programme Action Plan
Energy efficiency
Engineering Procurement Construction
Fund Authorization and Certificate of Expenditure
Greenhouse gas
Government of India
Integrated Energy Policy
Jawaharlal Nehru National Solar Mission
kilowatt-hour
Megawatt
Ministry of New and Renewable Energy
National Bank for Agriculture and Rural Development
National Action Plan for Climate Change
Non Governmental Organization
National Project Coordinators
National Project Director
Net present Value
National Solar Mission
Project Executive Committee
Project Management Unit
Project Steering Committee
Quarterly Work Plan
Renewable Energy Technology
Self Help Group
Solar Photovoltaic
State Nodal Agency
United Nations Development Programme
United Nations Development Assistance Framework
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1. EXECUTIVE SUMMARY
1. 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 experiences
2.2. Design framework for inclusive planning and implementation in 350 villages
2.3. Pilots to address gaps and up-scaling
2.4. 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.
3. 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
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
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)
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.
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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 implementationready 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 villages
4.1. 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;
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Scaling up of business model
4.1.1. 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, sweetshops 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 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
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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.
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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 Energy
5.1. 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
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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.
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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
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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
Wind power
Small Hydro Power
Bio Power (including cogen)
Solar Power
Estimated Potential (MW)
48,500
15,000
23,700
20-30/sqkm
87,200
Cumulative till Sept-12
18,192
3,447
3,359
1,045
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.
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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.
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2. INTRODUCTION
This 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 Background
As 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.
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
2
Working Group on Power for 11th Plan report: Section 3.7.1 – Progress of Rural Electrification During Xth Plan
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
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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 Objectives
The 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 Brief
National 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
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
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
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 Analysis
Supporting 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 technologies
Based on a review of existing policies, schemes and programmes, a feasible framework for upscaling 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.
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Support to upscale implementation
The 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 Deliverables
Rural Energy Access Advisory committee formed and current scenario reviewed
An 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 learning
The 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
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
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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 Actual
Programme Target
Deviation
Outcomes
Review existing policies, None
Two compendium capturing details of pilots
pilots and experiences
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 Target
Project Steering Committee (PSC), with
inclusive planning and number of representatives from MNRE and UNDP
implementation in 350 villages
approved the guidelines and procedures for
villages
revised to management of funds & due diligence process
35
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 None
Seven RET projects received MNRE grant
up-scaling
sanction
to
demonstrate
innovative
technology,
business
models,
market
development and scale-up. Details in Chapter 3
Inputs for a policy on None
Renewable Energy Plan for Chhattisgarh and
Accelerated Access to
Odisha (Attachment 5) and National Strategy
Clean Energy
for Accelerated Access to Clean Energy
(Attachment 6) prepared.
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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.
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3. PROJECT PROGRESS
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. 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
1st Project Executive Committee
2nd Project Executive Committee
3rd Project Executive Committee
4th Project Executive Committee
5th Project Executive Committee
Date held
November 12, 2010
March 17, 2011
September 5, 2011
January 24, 2012
March 29, 2012
1st Project Steering Committee
2nd Project Steering Committee
July 9, 2010
December 14, 2010
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Proposal 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 Outcomes
The 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.
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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 AsiaPacific 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 biogas 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:
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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 MNRE
S.No.
Project Description
Proposed
location
project
Implementing Agency and contact
information
1
Setting up of 41
village-level
solar
photovoltaic microgrids for providing
electricity
to
households
Block
Bangaramau,
Distt. Unnao, and block
Mallawan
in
Dist.
Hardoi, Uttar Pradesh
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
Humana People to People India
111/9-Z Kishangarh Vasant Kunj,
Aruna Asif Ali Marg
New Delhi – 110 070
Contact Person:
Ms. Anne Marie Moeller
Cell: +919818372885
annemariemoeller@gmail.com
Shramik Bharti
392, Vikas Nagar
Kanpur – 208 024
Contact Person:
MrRakesh Pandey
Cell: +919935535680
rakesh@shramikbharti.org.in
3
Setting up on “One
Shakti
Kendra”
to
Distt. Bolagir, Odisha
ONergy (Punam Energy Pvt. Ltd.)
1 A, D.L. Khan Road
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
MNRE
approval
reference
and
amount sanctioned
Ref.
4/5/2010/PMU/ACE
dated 26/03/2012
Sanctioned amount:
Rs 22.35 lacs
Ref.
4/10/2010/PMU/ACE
dated 03/04/2012
Sanctioned amount:
Rs 28.18 lacs
4/17/2010/PMU/ACE
dated 17/04/2012
P a g e | 27
S.No.
4
Project Description
deploy
renewable
energy products to
bottom of pyramid
communities
in
20
villages
Setting up a 30kW
system based on Hydrokinetic Technology
Proposed
location
project
Village Behta Khurd and
Raghunathpur,
Distt.
Rae
Bareilly,
Uttar
Pradesh
5
Setting up Green Energy
Mandal/ Mahila Urja
Center to create cluster
of carbon free zone
Distt.
Rajnandgaon,
Mohalla,
Chhattisgarh
6
Creation of Supply chain
and streamlining of
commercial
bank
financing for improved
wood burning stoves for
commercial kitchens
Distt. Ajmer, Rajasthan
Setting up of four
biomass gasifier based
electricity
generating
systems to provide
electricity
to
households,
microenterprises
and
irrigation pumps
Vill. Galimapur, Block
Garkha & Vill. Qutabpur,
Block Dariyapur, Distt.
Saran, Bihar, and Vill.
Ramnagar,
Block
Murlichapra,
Distt.
Ballia, UP
7
Implementing Agency and contact
information
MNRE
approval
reference
and
amount sanctioned
Kolkata 700 027
Contact Person: Mr. Piyush Jaju
Cell: +919831515911
piyush@onergy.in
Sanctioned
Rs 22.6 lacs
Emerging Energies Private Limited
Regd. Office 810 Phase 3, B-2
Mohali 160 059, Punjab
Contact Person:
Mr. Chandan Singh
Cell: +919779140055
csingh@ecoemergingenergies.com
Small Scale Sustainable Infrastructure
Development Fund (S3IDF)
Administrative Staff College of India,
Bella Vista, Hyderabad – 500 082
Contact Person: Mr. T.L. Sankar
Phones: +91406653 4277 /
+9180 6590 2558
sankar@asci.org.in
;
leenar@s3idf.org
Technology
Informatics
Design
Endeavours (TIDE)
No. 19, 9th Cross, Malleswaram
Bangalore – 560 003
Contact Person: Ms. Svati Bhogle
Phone: +918023315656
Svati.bhogle@gmail.com
Saran Renewable Energy Pvt. Ltd.
102, Bajran Market, Mauna Gola Road
Chapra, Saran 841 301, Bihar
Contact Person: Mr. Vivek Gupta
Cell: +919234880909
saranrenew@yahoo.co.in
4/9/2010/PMU/ACE
dated 17/04/2012
Sanctioned
Rs 20.0 lacs
amount:
Amount:
4/3/2010/PMU/ACE
dated 17/04/2012
Sanctioned Amount:
Rs 30.72 lacs
4/16/2010/PMU/ACE
dated 17/04/2012
Sanctioned Amount:
Rs 11.81 lacs
4/9/2010/PMU/ACE
dated 17/04/2012
Sanctioned Amount:
Rs 37.03 lacs
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.
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3.3.1
Humana People to People India (HPPI)
Project Brief
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. Each microgrid 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 Model
Supply 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 Maintenance
Each 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 Model
HPPI 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 3,500
Sustainability
The entrepreneurship based model with involvement of community and revenue model is
viable.
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Scalability Potential
There 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 Progress
On 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
Figure 1
240W solar panel powers mini grid in Ruknapur
lighting systems, which are easy to install, easy to handle
village, Distt. Hardoi (U.P.)
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 mingrid 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
Figure 2
team during the visit. He confirmed that Minda is working
Grid Controller (grey) and distribution point (yellow) at
out the technical and economic feasibility of a mini-grid with
Atardhani village, Distt. Unnao (U.P)
20 subscribers.
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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 Bharti
Project Brief
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 Model
Supply 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 Maintenance
Shramik 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 Model
The 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
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
Expected
P a g e | 31
.
1
Self help group – Computerised
accounting office of Jagriti Mahila
Samiti, the federation of SHGs in
Maitha block of Ramabai Nagar
District
SHG products showroom managed
by Jagriti Mahila Samiti
Community Radio Station promoted
by Shramik Bharti
Rental service of solar lanterns to
shops and enterprise by Solar Lantern
Charging Station
Irrigation facility to farmers
Total
2
3
4
5
Jagriti Mahila Samiti
Monthly
income
Rs 1,000
Jagriti Mahila Samiti
Rs 1,000
Waqt ki Awaz
Rs 4,000
Commitment
of
50
enterprises to pay Rs 5 per
day
Commitment of 15 farmers
Rs 7,500
Rs 1,500
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 500metres 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 Potential
The 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
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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
Figure3
community radio station and solar lantern charging center. The Village Bairi Dariyav which will receive
electricity from RE power station being
vacant area in the plot is earmarked for setting up rice-husk
set up by Shramik Bharti
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.
3.3.3
Punam Energy Private Limited (ONergy)
Project Brief
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ONergy 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 Model
Supply Chain Mechanism: Suppliers identified are SELCO, Barefoot Power for solar products
and TIDE for improved cook stoves.
Operation and Maintenance
The 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 Model
Revenue 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 Potential
ONergy 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
Figure 4
ONergy conducts a two-day training on SPV
products for the Entrepreneurs in Bolangir
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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
Figure 5
officials of Regional Rural Banks and Public Sector banks.
Field demonstration of solar PV based lighting
products at Patnagarh
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.
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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
Figure 6
kerosene usage which is resulting in monthly savings of about Rs 150, as In Bidighat village, Odisha, the
use of kerosene for lighting in
the monthly requirement of 6 liters of kerosene was met in the following
this rural home stopped
completely after purchase of
way - 2 liter from government’s fair price shop @ Rs 17/liter and
this SPV lamp
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.
3.3.4
Emerging Energies Private Limited
Project Brief
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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.
Business Model
Supply 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 Maintenance
The 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 Model
The 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 Cost
Items
Hydro kinetic turbines (2x15kW)
Permanent generators with gearbox assembly
Support structure and civil work
Inverter and power electronics
Switchyard and connecting lines
Connecting lines for surplus load
Installation expenses
Working capital
Estimated Cost (in Rupees)
4,02,500
4,80,000
4,70,000
5,00,000
3,00,000
2,00,000
2,50,000
50,000
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Total 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 Potential
It 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 Brief
Small 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 Model
Supply 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 Maintenance
RE 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 Model
The 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
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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 years
All figures are in Indian Rupees
Income / Expenditure
Income
Year 1
50%
capacity
Margin of 10% on total sale value of Rs
500,000 per month would be Rs 50,000
Total Monthly income on Sales
25,000
Expenditure
Equated monthly instalments
borrowing
Interest on working capital loan
Rent, electricity, communication
Part-time book keeper
Shop assistant salary
Total expenditure per month
Monthly surplus / deficit
on 5,650
1,500
5,000
5,000
10,000
27,150
-2,150
Year 2
75%
capacity
Year 3
100%
capacity
Year 4
100%
capacity
Year 5
100%
capacity
37,500
50,000
50,000
50,000
5,650
0
0
0
1,500
5,000
5,000
10,000
27,150
10,350
1500
5000
5000
10000
21,500
28,500
1500
5000
5000
10000
21,500
28,500
1500
5000
5000
10000
21,500
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 Potential
Figure 8
Women Energy Center at Mohala, Distt.
Rajnandgaon, Chattisgarh
Based 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 Progress
Visit 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
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
Figure7
P a g e | 39
Energy Center operated by Women
in Mohala, Chhattisgarh sells RET
products and improved cookstoves
to villagers in the Mohala block
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.
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
Figure9
‘panchayat’ members and head of village council (aka ‘sarpanch’)
The Solar street light installed by
who have bought the systems provided useful insights. All the
S3IDF outside the Block
Development office provides
villages visited have access to gird electricity with houses having illumination for local resident’s leisure
activities after sunset
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
UNDP-MNRE Access to Clean Energy: Project Close-out Report – Ver 3 (31_1_2013)
P a g e | 40
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.
3.3.6
Technology Informatics Design Endeavours
Project Brief
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.
Business Model
Supply 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 Maintenance
Pyro 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 Model
The 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
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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 Brief
Saran 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 Model
Supply 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 Maintenance
The power plant is expected to supply power for six hours each day and 325 days per year..
Revenue Model
The 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.
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Scalability Potential
The 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 Points
In 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 Outcome
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The 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 States
The 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
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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. Ltd
Solar Alternatives and Associated Programmes
Indian Grameen Services (Basix)
TARU-MITRA Students’ Forum For Environment
Gramin Evam Nagar Vikas Parisad
Yogiji Sewa Sansthan
DESI Power
Bihar Development Trust
Nidan
Bihar Rural Livelihood Promotion Society
Chhattisgarh
Name of the Organization:
Jharkhand
Name of Organization
Madhya Pradesh
Name of the Organization
IKARD
Vandarshan Samajik Sanstha
Shakambhari Foundation
Vikas Mitra
Society for Integrated Development & Research Assistance
JANPAHELI
Jijeevisha Samitee
Gramin Vikas Trust
Jan Sewa Parishad
Krishi Gram Vikas Kendra
Samaj Seva Samity
Consortium of Human Enlargement and Technology Nature Association
Citizen Foundation
Lohardaga Gram Swarajya Sansthan
Towards Action & Learning
Deendayal Research Institute
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Orissa
Name of Organization
Rajasthan
Name of Organization
Uttar Pradesh
Name of Organization
Paryavaran Sanrakshan Evam Aadivasi Vikas Kendra
Gramodyog Sansthan
Satguru Mission
Asha Gram Trust
Gram Vikas
AGRAGAMEE
Bharat Integrated Social Welfare Society
CTRAN
SPARDA
People's Institute for Participatory Action Research
Janamangal Mahila Samiti
Barefoot College
PRAKRATIK Society
Centre For Development Communications
Surya Chambal Power Ltd
Mahila Evam Paryavaran Vikas Sansthan
Hanuman Van Vikas Samiti
Prayatna Samiti
Lok Kalyan Sansthan
Gramotthan Sansthan
Gramin Mahila Vikas Sansthan
Action for Food Production
Samagra Vikash Sansthan
Tarai Environment Awareness Samitee
Centre for Industrial and Management Consultants
Micro Energy Research and Implementation Society
Kanpur Gaushala Society
Green Society
Sarvodaya Gramodyog Seva Samiti
Manav Seva Sansthan
Vikas Udyog Samiti
Development Association for Human Advancement
PACE (Participatory Action for Community Empowerment)
Sarvodaya Ashram
Asha Gramothan Sansthan
Manviya Dristhtikon Seva Samiti
National Association for Voluntary Initiative and Cooperation
Jyoti Niketan
Solidarity of the Nation Society
Barh Evam Pradushan Pidit Kalyan Samiti
Vikas Dhara Mahila Sansthan
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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 valueadded 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
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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.
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4.2 Recommendations
Based 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.
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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.
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Following Indian Standards on LED and LED based products have been published in 2012.
Sl No. IS No
1.
16101 : 2012
Title
General Lighting - LEDs and LED modules – Terms and
Definitions
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) : Lamp Control Gear Part 2 Particular Requirements Section
2012
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
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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 >
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