D.E.S.I Power
™
UNCTAD   Expert   Meeting:
Green   and   Renewable   Technologies as
Energy   Solutions   for   Rural   Development
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Hari Sharan hari.sharan@desipower.com
9.02.2010
UNCTAD_GENEVA_HariSharan 1

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 2

Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Global Reasons
Dwindling Reserves of Fossil Fuels.
Severe External Impacts of Fossil Fuel Combustion.
Unaffordable Life Styles and Wasteful Consumption.
High Risk of Climate Change.
Third World Reasons
The current energy and power policies have not worked for billions in the
Third World.
Conventional Rural Electrification, linked to the Centralised Power Sector Is a failure in the rural areas in the Third World
9.02.2010
UNCTAD_GENEVA_HariSharan 3

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
HUGE D I S P A R I T I E S in
Energy Consumption
Income
Carbon-Emissions
Even today
300-400 million people in India and 1.6 billion people world wide have no access to any form of modern commercial energy.
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
DISPARITIES in ENERGY CONSUMPTION
Per Capita Electricity Consumption kWh / year (2003)
9.02.2010
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
DISPARITIES in ENERGY CONSUMPTION in INDIA
Per capita consumption of electricity in 2004
All India average consumption
Goa
Delhi
Punjab
Orissa
J&K
Karnataka
Manipur
Nagaland
Bihar
-
218
75
156
500
688
695
647
642
1,301
1,000 kWh
1,500
1,542
2,000
2,178
2,500
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
DISPARITIES in INCOME in INDIA
Estimated Income
Distribution
Total Population: 1166 Mio.
100
24
20
25
20.4
10 7
3.6
9.02.2010
1
11.7
104.9
116.6
349.8
Population Mio
Income Distribution 2008
466.4
116.6
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D.E.S.I Power
™
9.02.2010
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
DISPARITIES in C-EMISSIONS
Total Historical Emissions to 2000.
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
U
S
A
Ru ss ia
G erm
.
C hin a
U
K
Ja pa n
Countries
In di a
S.
Af ric a
B ra zil
In do ne si a
Total Historical Emissions to 2000
UNCTAD_GENEVA_HariSharan 8

D.E.S.I Power
™
9.02.2010
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Total C-Emissions to 2050 with a Convergence Target of 1.5 t-CO2/ cap
Total Historical and Future Emissions to 2050 for C-Convergence
140000
120000
100000
80000
60000
40000
20000
0
U
S
A
R us si a
Ge rm.
Ch in a
U
K an
Jap
Countries
In di a
S
. Af ri ca
B ra zi l
In do ne si a
Total Historical and Future Emissions to 2050 under Convergence Regime
UNCTAD_GENEVA_HariSharan 9

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Centralised Rural Electrification has Failed Third World Villages
9.02.2010
UNCTAD_GENEVA_HariSharan 10

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 11

Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
A New Energy Paradigm Needed for the Third World:
Centralised and Decentralised Sectors should have their own framework to function as equal partners.
The centralised power sector should serve primarily the industrial, infrastructure and urban sectors.
The decentralised power sector, primarily based on renewable sources, should serve the rural and periurban areas.
An level playing field should be provided for the decentralised power sector.
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
A Systemic Approach is Needed to
Make A New Energy Paradigm
Succeed
9.02.2010
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Breaking the vicious as the driving force for sustainable rural livelihoods
9.02.2010
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
ENERGY
• Biomass:   residues   /   generation
• Bio ‐ fuels:   food   vs.
fuel
• Land   use: food,   shelter,   energy
• Energy   services: water   pumping   / recharging cooking/lighting/drinking   water
• Saving   GHG   emissions
WATER
9.02.2010
FOOD
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
An Example:
DESI Power’s 100 Village
Employment and Power Program in Araria District, Bihar.
9.02.2010
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Phase 1/100 Village EmPower
Partnership Program
1. 100 Village Program registered under CDM for carbon trading.
2. Wins WB Development Market Place Award.
3. 3 plants financed and functioning in new villages.
4. Loads still inadequate for profitability.
5. Biomass supply & management being stabilised.
6. Management Training Centre DESI_MANTRA set up and functioning.
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 19

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 21

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 22

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 23

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Ipomea Field in Orchha
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Growing Ipomea and Daincha in Baharbari
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Growing Daincha in Other Villages
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 27

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 28

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 29

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 30

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 31

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 32

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
UNCTAD_GENEVA_HariSharan 33

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
An Example of Energy Service Business under the EmPower Partnership Model
9.02.2010
UNCTAD_GENEVA_HariSharan 34

Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Phase 2/100 Village Program
COURSE CORRECTION BASED ON PHASE 1 EXPERIENCE
1. 10 to 20 villages depending on funds.
2. Business plans finalised for micro-enterprises, new business units and energy / water services.
3. Biomass growing, supply and processing now a Business Unit.
4. Diversifying engine supply and support services underway.
9.02.2010
UNCTAD_GENEVA_HariSharan 35

Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Phase 2/100 Village Program (continued)
5. Won Tech Museum - Accenture Technology
Innovation Award ($50’000).
6. Agreement with SBI for direct bank loans to villagers for micro enterprises and businesses.
7. Raising investment finance: several alternatives packages under discussion.
8. Village data collection and project planning underway.
Implementation Plans for Phase 2 Ready
9.02.2010
UNCTAD_GENEVA_HariSharan 36

D.E.S.I Power
™
9.02.2010
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
-
70
60
50
40
30
20
10
-
BASIS for ACHIEVING PROFITABILTY
4 8
Operational Years
12
Plant Load Factor (%)
UNCTAD_GENEVA_HariSharan 37

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program year. period of 6 years with an agreed p between 180 - 220% % of the equ
9.02.2010
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Forms of Investment
1.
Local Commitment Investment: Villagers and local entrepreneurs to ensure local participation and commitment.
2.
Carbon Footprint Investment in exchange for CERs to compensate for Investor’s GHG emissions.
3.
Socially Responsible Investment : Long term equity or loan with a fair return on financial, social and ecological parameters.
4.
Up-Front Carbon Investment : Paying for a part of the anticipated CERs as an advance to built the project.
5.
Commercial loans with or without social and ecological bonus.
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
9.02.2010
Investment in Power Plants and Biomass
Processing. Lacs
Investment in Capacity Building, Training and
Running Cluster Centres for 12 years, Lacs
Investment in Business Units, Lacs
Total Investment Lacs
Subsidy.Lacs
50
36
33
119
7.5
Bank Loan Lacs 20
External Equity Lcs
CERs: Estimated generation over 12 years tCO2
Income from CERs, Lacs
92
169000
81.1
Income from CERs % Equity 89%
UNCTAD_GENEVA_HariSharan 40

D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
To
SUMMARISE
9.02.2010
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Poverty, Energy and Climate Change:
Employment and Power Partnership Program
D.E.S.I Power
™
Innovations Make The EmPower Partnership Program Successful
1. Making Complex RETs reliable for villages and manageable by local staff.
2. Integrating electricity supply and creating local demand: both profitable.
3. Creating non-agricltural jobs in micro-enterprises, businesses, and energy and water services.
4. Building partnerships with villagers: organisations, infrastructure, capacity building and training, with focus on women (DESI MANTRA).
5. Cluster Centres: continuing extension services and performance audit.
6. New financing mechanisms: integrating carbon credits and making non-government village projects bankable.
9.02.2010
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D.E.S.I Power
™
Poverty, Energy and Climate Change:
Employment and Power Partnership Program
Thank you
9.02.2010
UNCTAD_GENEVA_HariSharan 43