Demand side management and Renewable Energy In India: Capacity Building of CSOs DREC PROJECT Gujarat Chapter Mid Term Review Meeting 6th January 2012 Presented By- Ankur Brauah VIKSAT, Ahmedabad VIKSAT VIKRAM SARABHAI CENTRE FOR DEVELOPMENT INTERACTION Nehru Foundation for Development, Ahmedabad, Gujarat 1 Outline of the presentation • Accomplished project activities • Perception Survey Methodology • Key findings of the perception survey – – – – – General Perception about Climate Change Awareness/understanding about RE Awareness about DSM and EE Willingness to pay Stakeholder’s response • Challenges and opportunities • Way forward 2 Project Activities Accomplished Project Activist Q1 Q2 Q3 Q4 Q5 Q6 Literature review and Preparation of Questionnaire Local Inception Workshop Baseline Consumer Survey and Analysis State Level Paper RG meeting State Level Training Workshops Consumer Interface Meetings Final Consumer Survey Policy Advocacy Meetings 3 Accomplished Planned The Perception Survey Methodology • Quantitative - Survey Method • Qualitative - Focus Group Discussion • Stakeholders – – – – – – Household-200 Commercial-50 Government-50 Industrial-50 Farmer-50 CSOs-100 • Districts – – – – Ahmedabad -113 Kachchh –174 Mahesana -106 Patan - 107 4 General perception and awareness on Climate Change General findings – Climate change/global warming awareness • • 92.6% of total respondents, 88% of rural respondents and • 64% of uneducated are aware about – Priority of Global Warming issue over other development issue 59.8% – 16% industrial respondents thinks it is less important issue – 48% thinks that it will affect overall living of human Response to statements – Climate change is happening- 96.8% – Climate change is effecting everybody-96.8% – Every individual can do something to adapt to climate change – 85% – Living today is more important than impact of climate change-89.8% – Climate change implications on quality of life of next generation- 85.8% 5 Awareness/understanding about Renewable Energy Highlights of awareness about RE Total HH Urban Rural Uneducated Female 92% 85% 93% 82% 60% 70% Biogas Hydro Tidal Source of RE Solar 91.51 Wind Biomass 79.25 16.98 34.43 33.49 25.47 Believes that RE can Improve Environment Total 97.0 Household Commercial 95.5 Government 100.0 Industrial 94.0 96.0 Farmer 98.0 Cost Effectiveness of RE Equipments Expensive 35.6% Comparable Low 18.4% No idea 12% 34% Awareness about RE run electric equipments and use Awareness Use Total Urban Rural Total Urban Rural 57.5% 78% 62% 62% 65% 45% Reasons of not using RE equipments High initial cost Poor Product quality No after sale service No financial incentive Other reasons 47.5 9.1 21.2 19.2 17.2 6 Major inferences of RE awareness • Awareness about RE in rural is lower than urban areas, among women and uneducated population • Awareness about RE other than solar and wind is less • Awareness about cost effectiveness of RE is not substantial • There is a large gap between awareness and practice of RE sources • Initial cost and absence of after sale service are the major barriers in adoption of RE 7 Awareness about DSM and EE Power supply problems Frequent power cut Voltage fluctuation 7.8% 14.4% Both None 28.6% Supply problem 49.2% Rural Urban 55% 49% Power supply problem across districts Frequent power cut Voltage fluctuation Mahesana Patan 13 % Both None 12 % 6% 82 % 10 % 39 % 39 % Ahmedabad 100 % Kachchh 11 % 9% 40 % 40 % EE can reduce power bill Household Commercial Government Industrial Farmer CSOs 83% 86% 86% 92% 78% 85% Use of EE in HH Total Rural 58% Urban 56% 59% Identification of EE products Use of star rating Star rating BEE labeling No idea Other 53% 12.5% 29.5% 6% Rural Urban 45% 71% Satisfaction over EE products in HH Extremely High 7% High Medium 27% Low 48% Not satisfied 17 2% 8 Major inferences of DSM and EE • Power cut and voltage fluctuation are major supply problems • Power supply problem is high in rural areas than in urban area • Patan and Kachchh has more supply problem • There is wide gap between awareness and use of EE products • Not many consumers have fair idea about identification of EE products • Awareness about star rating is much less in rural consumers • Not much EE users are highly satisfied by the EE products 9 Cost effectiveness of RE equipments 76 80 70 Awarness 57 %age 60 Use of RE equipments 44 50 40 37 31 30 30 19 20 6 10 0 Very High Comparable Low No idea Gap between Awareness and Practice Awareness %age Use of EE products 100 90 80 70 60 50 40 30 20 10 0 86 83 Practice 92 86 85 84 78 43 41 25 33 31 24 24 10 Household Commercial Government Industrial Farmer CSOs Very High Cost effectiveness of RE equipment Com parable Low 60 %age 40 No idea 48 50 40 36.5 35.5 43 36 30 26 24 19 10 9 24 24 24 20 18 20 10 44 20 14 12 22 21 16 14 0 Household Com m ercial Governm ent Industrial Farm er CSOs Issues of RE and EE Lack of proper service, 12.2 Other, 11.0 Not aw are of proper EE technology, 37.8 High investm ent cost, 8.5 No incentive from govt, 18.3 EE issues in industries & commercials EE technology not available, 12.2 11 Willingness to pay for clean energy Willingness to pay for Clean Energy Total Domestic Agriculture Rural Urban 61.6% 61% 53.6% 54% 61.9% Industrial Govt Private CSO's Educational 83.1 60.0 76.3 53.8 66.7 Mahesana Patan Ahmedabad Kachchh 73 84 18 39 0% To 20% 20% to 30% 30% To 40% 40% To 50% 50% and ABOVE CAN'T SAY 62 26 5 2 1 5 Willingness to install solar lighting and heater Total Rural Urban 94.5% 69.5% 25% Barriers to adoption of renewable energy Govt. should provided more subsidy Invest more in R&D to improve technology Surcharge on other sources of supply Other 48.5 46 2.1 3.3 Awareness about credit facilities for RE Total Urban Rural 36.6% 39.3% 23.8% 12 Major inferences of willingness to pay • Rural and agriculture consumers are less willing to pay for clean energy • CSOs and Educational institutions are less willing to pay for clean energy • Consumers from Ahemedabad and Kachchh is less willing to pay for clean energy • Among willing respondents majority are willing to pay up to 20% of additional cost • Willingness to use solar appliances is much less in urban areas than in rural areas • Govt. subsidy and better R&D are expected by majority of consumers • Credit facility for RE is known by very less numbers of consumers 13 Household, 61.5 CSOs, 59 Com m ercial, 78 Farm er, 54 Industrial, 80 Governm ent, 62 Willingness to pay for clean energy Willingness to pay and demand for RE Value addition required for RE %age Reliability 90 80 70 60 50 40 30 20 10 0 Better services 80 73 65 60 46 55 52 40 31 24 Household 45 Com m ercial 18 Governm ent Industrial Farm er CSOs 14 Stakeholder’s Responses Farmers • 66% farmers use electricity and 28% uses diesel to run pump set • 98% of farmers agrees that diesel and kerosene generates air pollution • 22% farmers are using EE pump set but unable to save money as half of the farmers are in fixed rate billing system • 64% farmers are not aware of availability of solar pump- none of them using solar pump Households • 60% of HH are using EE products • Neighbour’s choice is the priority in identifying EE products over star rating • Saving in electricity bill is moderate for majority • Satisfaction from EE products moderate and less for majority • Only 14% HH are using RE run electric appliances • RE technology is not available for high power consuming appliances • The cost of EE products is high but durability is less, so net saving is not substantial 15 Stakeholder’s Responses Commercial • 84% of commercials are aware of BEE labeling and star rating • 20% have conducted energy audit last 2 years • 26% have adopted one or other types of EE measures Industries • 96% of industries are aware of BEE labeling and star rating • 66% have conducted energy audit last 2 years • 70% have adopted one or other types of EE measures Govt. Institutions • 72% of govt. institutions are aware of BEE labeling and star rating • 20% have conducted energy audit last 2 years • 40% have adopted one or other types of EE measures CSOs • • • • • • 73 of the CSO thinks global warming is the much more important development issue All CSOs believe promotion of RE will improve environment 35 CSOs are working with Energy related issues Absence of funding and lack of knowledge on the issue are major difficulty for CSOs to work with Energy issue 49 CSOs are unaware of Regulatory Authority and 68 are unaware that regulator is mandated to consult CSOs and while fixing electricity tariff 74 CSOs are interested to work with Energy issue provided support 16 Challenges and Opportunities Challenges Opportunities Awareness about RE sources is low among consumers Awareness generation may lead to more penetration of RE and EE practices Available RE technologies are unable to attract consumers The RE technology need to be debated and disseminated Initial cost of RE run appliances is high Financial incentives, service promotion and technology development issues need to be Lack of after sale services for RE run taken into policy making platforms appliances Industries and other institutional consumers expect incentives from govt. for RE and EE Net monetary saving by EE appliances is Consumers need to be educated about benefits of DSM on power tariff and clean perceived to be less environment Less number of CSOs are working with the Capacity building of CSOs may take the RE and DSM issues to ground level in a large energy issues way 17 Way Forward • Training workshop will be designed to impart knowledge and information about DSM and RE issues to CSOs • Awareness about RE sources, Information about RE and EE technology and credit facility will be a key input in consumer interface meetings • Addressing the challenge of converting awareness to practice for RE and EE will be the part of state level training workshop • Agriculture consumer will be a key stakeholder for promotion of RE and EE practices through consumer interface and follow up actions • Subsidy to consumers and R&D assistance in RE technology will be taken to policy advocacy meeting 18 19