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UNDP’s Energy Programme and Entrepreneurship By S N Srinivas on 8 January 2014 at Bangalore 1 United Nations Development Programme, India Lasting Solutions for Development Challenges

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A Talk by Dr. S.N. Srinivas on on some of the project initiatives at UNDP, their implications to policy making, opportunities it has created/ can create for entrepreneurs.

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Page 1: TiE Bangalore UNDP Energy programme and Enterpreneurship

UNDP’s Energy Programme and Entrepreneurship

By S N Srinivas on 8 January 2014 at Bangalore

1

United Nations Development Programme, India Lasting Solutions for Development Challenges

Page 2: TiE Bangalore UNDP Energy programme and Enterpreneurship

CONTENT

Background of UNDP’s responses to energy

Few case examples of UNDP’s energy projects

under

◦ Renewable Energy,

◦ Energy Access and

◦ Energy Efficiency

2

Page 3: TiE Bangalore UNDP Energy programme and Enterpreneurship

UNDP’S RESPONSE TO ENERGY ISSUES

3

Page 4: TiE Bangalore UNDP Energy programme and Enterpreneurship

The Eight Goals

Eradicate extreme poverty and hunger

Achieve universal primary education

Promote gender equality & empower women

Reduce child mortality

Improve maternal health

Combat HIV/AIDS, malaria, and other diseases

Ensure environmental sustainability

Develop a global partnership for development

4

Page 5: TiE Bangalore UNDP Energy programme and Enterpreneurship

Goal 7: Ensure environmental

sustainability Integrate the principles of sustainable

development into country policies and programs;

reverse loss of environmental resources.

Reduce biodiversity loss, achieving, by 2010, a

significant reduction in the rate of loss.

Halve, by 2015, the proportion of people without

sustainable access to safe drinking water and

basic sanitation (for more information see the

entry on water supply).

By 2020, to have achieved a significant

improvement in the lives of at least 100 million

slum-dwellers 5

Page 6: TiE Bangalore UNDP Energy programme and Enterpreneurship

SUSTAINABLE ENERGY FOR ALL AN INITIATIVE OF THE UN SECRETARY GENERAL

Providing universal access to modern

energy services;

Doubling the global rate of improvement

in energy efficiency; and

Doubling the share of renewable energy

in the global energy mix.

Page 7: TiE Bangalore UNDP Energy programme and Enterpreneurship

Under the leadership of the Government of India, the

aim of the 2013-2017 Country Programme Action

Plan (CPAP) is to support the Government’s efforts to

promote rapid, inclusive sustainable growth that

benefits the most excluded through partnerships with

Ministries, institutions and civil society.

The CPAP aims to improve development objectives

for poor and vulnerable populations in the nine

UNDAF focus states: Assam, Bihar, Chhattisgarh,

Jharkhand, Madhya Pradesh, Maharashtra, Odisha,

Rajasthan, and Uttar Pradesh.

VISION AND ULTIMATE GOALS

Page 8: TiE Bangalore UNDP Energy programme and Enterpreneurship

Almost

One Third

(32.1

percent)

of Indian

households

live

without

electricity Source: NFHS 3

8

Page 9: TiE Bangalore UNDP Energy programme and Enterpreneurship

India: Sustainable Development

India emits 4.6% of the world carbon dioxide.

It is the 4th largest emitter in the world

Carbon footprint of one Indian: 1.2 tonnes of carbon dioxide

It would take about 17 Indians to emit as

much as one American (20.6 tonnes)

29.4% of India’s energy is sourced from

Biomass

9

Page 10: TiE Bangalore UNDP Energy programme and Enterpreneurship

CASE EXAMPLES OF UNDP-INDIA PROGRAMME

10

Page 11: TiE Bangalore UNDP Energy programme and Enterpreneurship

UNDP’s Responses - Promotes Energy Efficiency, Energy Access

and renewable and alternate energy sources

Biomass energy

◦ Biomass Energy for Rural India

[completed], 4 million USD, total 8

million USD

◦ Removal of barriers for biomass

power in India [ongoing], 5.75

million USD, total 32 million USD

Solar energy

◦ Market development for Solar

Water Heater [just completed]

◦ Market development for

Concentrating Solar Heat [ongoing]

◦ Market development for Solar PV

products [under preparation]

Energy efficiency in tea

processing units [completed in

July 2013]

Removal of barriers to energy

efficiency in steel rerolling mill

[completed on 31 Dec 2013]

Upscaling energy efficient

production in small scale steel

industries

Energy Efficiency in Indian

Railways

Energy efficiency in commercial

buildings

Access to clean energy

Scale Up of Access to Clean Energy

for Rural Productive and Domestic

Uses

Coal Bed Methane

Biomethanation

Micro hydro development

11

Page 12: TiE Bangalore UNDP Energy programme and Enterpreneurship

RENEWABLE ENERGY

12

Page 13: TiE Bangalore UNDP Energy programme and Enterpreneurship

Biomass Power Potential based on available biomass including

cogeneration is about 20,000 MW

More than 50% of cogeneration is already exploited

Only about 2000 MW of biomass power plants are

installed

Most of these are combustion based, capacities exceeding

5 MW

Niche exists for few 100 kW to 2 MW. These have

advantages of not disturbing biomass flows greatly

UNDP has supported now two such projects

◦ Biomass Energy for Rural India – at panchayat level, with energy

plantations and biomass power generation, evacuation of power to

grid

◦ Ankur biomass power, Sankheda Gujrat – Open access power sale,

13

Page 14: TiE Bangalore UNDP Energy programme and Enterpreneurship

BERI

Parameter Details

Gasifier operation 1035 h

Engine Operation 1022 h

Grid Synchronisation 951 h

Total biomass consumption 111 t

Average biomass consumption 107 kg/h

Moisture content of biomass 15% or less

Specific Energy Consumption (calorific value 15 MJ/kg) 1.36 kg/kWh

Best recorded SEC 1.2 kg/kWh

Total energy generated 80,600 kWh

Net energy exported to grid 56,500 kWh

Average load factor 85 kWe

Peaking load factor 100 kWe

Rated Capacity of Engine 120 kWe

Overall efficiency biomass to electricity 18%

Overall efficiency producer gas to electricity 25%

Cold gas efficiency 77%

Estimated efficiency for 500 kWe 25 to 30%

Performance Guarantee expected

•1.25 kWh/kg of biomass

•95% of rated load

•300 kW of continuous operation

Performance achieved

PLANT LOAD FACTOR OF 68% ACHIEVED

Page 15: TiE Bangalore UNDP Energy programme and Enterpreneurship

BERI – LEARNING

Biomass supply:

3000 acres of plantations developed, 1/3rd on panchayat, 1/3rd

on forest department land and 1/3rd farm forestry.

Expected yield was 12,000 tons per year, assessed yield is

5,000 tons per year

Protection? Nutrients?

11 kV grid line a must for evacuation to run such systems – project

lost 2 years but a very important lesson

Load shift mechanism and catering to rural loads can help improve

economics, can help increase PLF, local ownership – could not be

demonstrated

Huge gap in generation cost and sale revenue: tariff given by

BESCOM was 2.85 Rs/kWh [14 year binding at 5% annual

escalation]. Production cost was 8.85 Rs per kWh. Project

supported operation till 31 Dec 2012 and then handed over to GoK.

It is in halt now

Is exploring commercial and market based loads better than

DISCOMs tariff based purchase?

Should regulatory/policy instruments be more flexible?

Page 16: TiE Bangalore UNDP Energy programme and Enterpreneurship

BERI – POTENTIAL

India has 230,000 grama panchayats. Each require about 250 kW

power.

When run at even 65% PLF which project has demonstrated

A typical biomass enterprise of 250 kW can

generate 1.5 million units

generate about Rs 1.2 Crore turnover a small scale enterprise

employ AT LEAST 12 jobs on continuous basis. Thus it can

provide 230,000 rural enterprises and about 2.76 million direct

jobs

300 acres of land is required for energy plantation to run 250

kW plant at modest yield of 10 tons per acre per year

Reduce greenhouse gas emissions

57,500 MW of power production potential

Energy plantation required would be 69 million acres [we have

wasteland of about 150 million acres]

Above numbers are for discussions and not to quote

Page 17: TiE Bangalore UNDP Energy programme and Enterpreneurship

Overall, the project was unique in three respects.

◦ First is that the project ensured supply of biomass resources through a dedicated plantation

to run a 1 MW cumulative biomass gasifier plants on a continuous basis.

◦ Second, it strengthened grid interaction at the tail end with continuous power supply to the

11-kV sub-megawatt plant located in the villages. And

◦ third, the project established operational benchmarks for sub-megawatt biomass-based

gasifier plants on the field.

One of the major take away is also the conditions under which such plants can sustain - tariff

offered to the electricity by the DISCOMs should be sufficient, in case of BERI the tariff offered

was Rs 2.85 per kWh whereas the cost of power production is Rs 8 plus per kWh

an urgent need for tariff revision – more so for sub-megawatt scale.

This book offers valuable insight and lessons for development professionals, policy makers,

researchers, and students on the implementation and management of renewable energy-based

sub-megawatt power projects in rural areas.

Web: http:/bionergyindia.kar.nic.in/aboutus.htm and United Nations Development

Programme; Energy and Environment Unit; 55 Lodhi Estate, New Delhi-110 003; Web:

http:/www.in.undp.org : Email: [email protected] .

The book is available at:

http://www.in.undp.org/content/dam/india/docs/EnE/bioenergy-for-rural-india---

demonstration-of-decentralized-sub-m.pdf

and you can also find a A/V in the link

http://www.youtube.com/watch?v=uooyODT69OA

17

Page 18: TiE Bangalore UNDP Energy programme and Enterpreneurship

Ankur Scientific Pvt. Ltd to set

up 1.2 MWe capacity biomass

gasifier based grid connected

power plant with approximate

investment of Rs 7 Crore

Sell power to M/s Aditya Birla

Insulators (a unit of Aditya Birla

Nuvo Ltd) plant located at

Meghasar, Halol block in

Panchmahal district of Gujarat

through open access

Revenue is 5.25 Rs/kWh plus

REC benefits of 1.5 Rs/kWh.

The plant has shown PLF of

65%

1.2 MW biomass gasifier based power plant,

Sankheda, Gujarat

Page 19: TiE Bangalore UNDP Energy programme and Enterpreneurship

1.2 MW biomass gasifier based power plant,

Sankheda, Gujurat

Page 20: TiE Bangalore UNDP Energy programme and Enterpreneurship

POTENTIAL

India has deficit in woody biomass, but has

surplus in agriculture residue.

These residues can be potential sources

to provide green power to many such

enterprises, especially the semi urban

settings

There are over 5 million enterprises that

require energy

20

Page 21: TiE Bangalore UNDP Energy programme and Enterpreneurship

SOLAR

21

Page 22: TiE Bangalore UNDP Energy programme and Enterpreneurship

Accelerating installation of Solar Water Heaters

Annual penetration rate of Solar Water Heaters (SWHs) was tripled

from 2.55 million sq. m. in baseline year of the project 2009 to 7.01

million sq. m. as of March 2013 [added 4.46 million sq. m. ]

22

0

200000

400000

600000

800000

1000000

1200000

Page 23: TiE Bangalore UNDP Energy programme and Enterpreneurship

SWH – ESCO, perhaps for the first time

An ESCO [Aspiration energy] installed 4,200 sq. m.

collector area of SWH systems at Wheels India Pvt. Ltd.,

a passenger car plant that reduces use of furnace oil for

hot water in the degreasing process. It has resulted in

saving 383 liters of furnace oil a day or close to 115,000

liters annually.

Another auto parts company, Sona Koya Steering

Systems installed 1333 sq. m. collector area of SWH

systems in 2012 also operated by the ESCO that

supplements use of furnace oil for their pressured water

heating systems. It has resulted in saving 120 liters of

furnace oil a day or 36,000 liters annually.

23

Page 24: TiE Bangalore UNDP Energy programme and Enterpreneurship

Region wise potential for SWHs

Three testing facilities are operational

◦ Solar Energy Center, Gurgaon;

◦ Regional Test Center, University of Pune &

◦ Regional Test Center, Hamirpur.

◦ The facility is open to the manufacturers to test their SWH system/ components for

complying with the ‘minimum efficiency specifications’ (for ETCs) and BIS standards for

FPCs systems.

24

Page 25: TiE Bangalore UNDP Energy programme and Enterpreneurship

CDM project registered for SWH systems, earnings from carbon credits

will be used for after sales service and performance guarantee for lifetime

of the system

30 awareness programmes were held across the country where 1000

people participated has mobilised Detailed Project Reports (DPRs) for 134

SWH systems and installations with a total capacity of 1,537,000 liters per

day [30,000 sq.m.]

Sector-wise SWH potential

25

Page 26: TiE Bangalore UNDP Energy programme and Enterpreneurship

Knowledge Products

A dedicated web site www.solarwaterheater.gov.in, provides FAQs on

SWHs, user’s handbook, links to the company websites of accredited

manufacturers, information on existing subsidy and policy serving as an

information portal.

◦ Training manuals have been prepared for installers in 9 different Indian languages for

installation and trouble shooting of SWH systems.

◦ Case studies, consultant guides and market studies of 5 different sectors of Himalayan

region, Delhi & NCR region, domestic, industrial and commercial have been developed.

Significant energy savings and GHG reductions

◦ 3.57 MU [Million Units] of electricity saved in the project duration translates to GHG

reduction of 1.66 million tCO2.

26

Page 27: TiE Bangalore UNDP Energy programme and Enterpreneurship

Looking to the future Enabling an energy labeling system initiated by the project is approved to ensure best quality

products

Setting up of a system by MNRE for M&V [Measurements and Verification], information

collection and performance monitoring of new SWH installations

Building state and municipal-level capacities to achieve and manage acceleration of SWH use and

meet the targets set for Phase II of JNNSM

Training to increase the number of semi-skilled and skilled workers needed for installations,

after sales maintenance and trouble shooting of SWH systems

Strengthening market mechanisms through ESCO models

Including SWH under the solar specific Renewable Purchase Obligation (RPO) for industrial

consumers

Widespread use of a prototype of a low cost, portable SWH system that is currently being

tested in hilly regions

Realising the potential of energy saving and GHG reductions: of installations made during the

project period has potential to save 27.9 MU of electricity translating to 24.9 tCO2 in the 15

year life time of the Solar Water Heating systems.

A target of 20 million square meters of collector area of SWH systems as per the Jawaharlal

Nehru National Solar Mission (JNNSM) by 2022 is to be realized by.

27

Page 28: TiE Bangalore UNDP Energy programme and Enterpreneurship

INDIA-CSH PROJECT

BASELINE

LOW PENETRATION LEVELS WITH ANNUAL INSTALLATIONS AT

2000 SQ. M

IN 2010, 71 INSTALLATIONS WITH CUMULATIVE 20,000 SQ. M

NO PERFORMANCE STANDARDS EXIST FOR COMMERCIAL CSH

SYSTEMS IN MARKET

PAYBACK ON INVESTMENTS ARE 7 TO 9 YEARS

PROJECT OBJECTIVE

INCREASE ANNUAL INSTALLATIONS TO 15000 SQ. M PER YEAR BY

END OF PROJECT

ADD 45000 SQ. M OF CSH INSTALLATION THROUGH 30

DEMONSTARTION & 60 REPLICATION PILOTS (AVG. 500 SQ. M)

REDUCE PAYBACK PERIOD TO 5 YEARS WITH INCENTIVES &

SUITABLE FINANCING

ESTABLISH PERFORMANCE STANDARDS, TEST PROCEDURES &

PROTOCOLS FOR CSH TECHNOLOGIES

Page 29: TiE Bangalore UNDP Energy programme and Enterpreneurship

CST Installation status

Total Number of Systems 144

Steam Cooking Systems 121

Solar Cooling 8

Process Heat & Laundry Applications 15

Installed as on 31st March, 2013 28000 (approx.)

Under Execuation 23 Nos. with 8100 sq. m.

Type of CST Collector Collector Area m2

Schfeller Dish 23000 m2

Paraboloid/ Arun Dish (Moving

Focus)

2470 m2

Parabolic Trough 1000 m2

Non Imaging/ LFR 1500 m2

Yearly Average Installations 5000 sq. m.(20 Nos.)

Page 30: TiE Bangalore UNDP Energy programme and Enterpreneurship

30

Page 31: TiE Bangalore UNDP Energy programme and Enterpreneurship

PILOT DEMONSTARTION OF CSH

TECHNOLOGIES

30 DEMONSTARTION PROJECTS TO BE SUPPORTED

DEMONSTRATION OF CSH TECHNOLOGIES FOR

PROCESS HEAT IN KEY SECTORS –

DAIRY PROCESSING UNITS

HOTEL INDUSTRY

HOSPITALS

TEXTILE UNITS

PHARMACEUTICAL

CHEMICAL

METAL TREATMENT

FOOD PROCESSING

INSTITUTIONAL COOKING

Page 32: TiE Bangalore UNDP Energy programme and Enterpreneurship

PILOT DEMONSTARTION OF CSH

TECHNOLOGIES

PROJECT SUPPORT FOR DEMONSRATION PROJECTS

TO CONDUCT FEASIBILITY STUDY UPTO USD 2000

PREPARATION OF DETAILED PROJECT REPORTS UPTO USD 8000

PROJECT SUPPORT UPTO 10% OF THE COSTS (NOT EXCEEDING

USD 20,000) IN ADDITION TO MNRE SUBSIDY

TECHNICAL TRAINING FOR 2 PERSONS IN O&M PER UNIT SITE

POST COMMISSIONING PERFORMANCE MEASUREMENT &

EVALUATION STUDIES

Page 33: TiE Bangalore UNDP Energy programme and Enterpreneurship

PILOT DEMONSTARTION OF CSH

TECHNOLOGIES

OBLIGATIONS UNDER DEMONSRATION SUPPORT (IN

FORCE FOR 2 YEARS FROM THE PERIOD OF

COMMISSIONG)

DEMO SITE MUST PROVIDE PERFORMANCE DATA

AGREE FOR VISITS BY PROJECT STAFF FOR

PERFORMANCE MONITORING

AGREE TO PROVIDE DATA FOR CASE STUDY

MATERIAL

ALLOW ACCESS TO SITE FOR DESIGNATED

PERSONNEL FOR DEMONSTRATING OPERATING

SYSTEMS

POST COMMISSIONING PERFORMANCE

Page 34: TiE Bangalore UNDP Energy programme and Enterpreneurship

PURPOSE OF AWARENESS WORKSHOPS

FOR VARIOUS SECTORS

SHOWCASE THE USE OF CSH SYSTEMS FOR

RELEVANT PROCESS HEAT APPLICATIONS IN

TARGETED SECTORS

MANUFACTURERS DEMONSTARTE THE USE OF

THEIR SYSTEMS IN FIELD AND SERVICES

OFFERED

END USERS EXPERIENCES – INTEGRATION, O&M

OF SYSTEMS, FINANCIAL FEASIBILITY, PAYBACK

PERIODS

PRSENT A CONCISE COST-BENEFIT DETAIL

WHICH ACCOUNTS FOR (1) CAPITAL COST, (2)

COST WITH MNRE SUBSIDY, (3) COST WITH MNRE

SUBSIDY & PROJECT TECHNICAL SUPPORT, (4)

Page 35: TiE Bangalore UNDP Energy programme and Enterpreneurship

PERFORMANCE STANDARDS FOR CSH

SYSTEMS

TO ENSURE QUALITY MANUFACTURING OF

CSH SYSTEMS IN INDIA, PROJECT ACTIVITES

INCLUDE SETTING UP OF PERFORMANCE

TESTING STANDARDS, TEST PROCEDURES

AND TEST PROTOCOLS FOR THE 5 CSH

SYSTEMS

A NATIONAL & REGIONAL TEST CENTER TO

BE SET UP WITH STANDARD TESTING

INSTUMENTS FOR PEFFORMANCE TESTING

OF CSH TECHNOLOGIES & APPLICATIONS

Page 36: TiE Bangalore UNDP Energy programme and Enterpreneurship

ENERGY EFFICIENCY

Page 37: TiE Bangalore UNDP Energy programme and Enterpreneurship

Energy efficiency in steel rerolling mills

34 model units have proved techno-economic and environmental benefits of

energy efficiency

◦ Reduced energy consumption by 25 to 30%

[45 to 35 liters FO per ton of steel, 90-100 to 60-70 kg coal per ton of steel

in re-heating furnace and 100 to 80 kWh per ton of steel in rolling mills]

◦ Reduced about 1500 to 2000 tCO2 per year

◦ Approximate investment is about Rs 2 crore

◦ Approximate returns is about Rs 1 to 1.5 crore per year on account of

reduction in energy consumption

◦ In addition, productivity increase, reduction in burning losses, etc.

◦ Direct rolling has much higher benefits, saves over 50% of energy,

completely avoids need of a re-heating furnace, prevents pollution thereoff

Investment plans for 40 pipeline units provided

We understand nearly 166 of the 300 surveyed units have incorporated energy

efficiency through influence of project

With the above confidence, it is aimed to scale up the

interventions about 300, provide catalytic support to

interested SRRM, draw lessons for balance 1800 to follow

Page 38: TiE Bangalore UNDP Energy programme and Enterpreneurship

Proposed technology packages

Page 39: TiE Bangalore UNDP Energy programme and Enterpreneurship

WORLD STEEL SCENARIO - 2010

World Steel Production – 1,414 million tonnes

(15% increase yoy)

Steel Production in China – 626.7 million tonnes

(9.3% increase yoy)

Steel Production in Japan – 109.6 million tonnes

(25.2% increase yoy)

Steel Production in India – 66.8 million tonnes

(6.4% increase yoy)

Presently India is fifth largest steel producer.

Expected to be second largest by 2015-2016

INDIA – finished steel production Finished steel production in 2009-10 60.8 million tonnes per year

Flat steel production 31.49 million tonnes

Non Flat steel production 29.19 million tonnes

Contribution of SRRM sector 19.54 million tonnes

(67.63% of total non flat production in India)

CHINA, 44.3%

JAPAN, 7.8%

INDIA, 4.7%

OTHERS, 43.2%

Page 40: TiE Bangalore UNDP Energy programme and Enterpreneurship

Local Sources

Coal Fired

Gas Fired

Oil Fired

Reheating Furnace Pencil Ingots

Billets / Blooms

Steel Plants

Local Sources Roughing Mill

Intermediate Mill

Finishing Mill

Bundling Manual

Dispatch

Local Sources

Coal Fired

Gas Fired

Oil Fired

Reheating Furnace Pencil Ingots

Billets / Blooms

Steel Plants

Local Sources Roughing Mill

Intermediate Mill

Finishing Mill

Bundling Manual Cooling Bed

Dispatch

PROCESS FLOW DIAGRAM OF SRRM

Electrical Energy

Thermal Energy

Page 41: TiE Bangalore UNDP Energy programme and Enterpreneurship

• Capital Subsidy of 25% investment

subject to max of Rs. 30.0 Lakhs for Low

End Technology and Rs 75.0. Lakhs for

High End Technologies.

• Reimbursement of the cost of

consultancy upto a maximum of Rs.

5,00,000

MODEL

UNIT

FINANCIAL SUPPORT

• Identifying existing problems

• Technical support by Project Expert Team

• Design Meeting with Consultants

• Performance Improvement Trainings for

Ùnits

• Electrical Energy Audit.

• Development of SOPs & SMPs.

• Evaluation of existing Roll Pass Designs

• Implementation of ISO 9001 and ISO

14001

• Implementation of 5 S-Lean Manufacturing

SUPPORT FOR THE SECTOR THROUGH SEMINARS & WORKSHOPS

TECHNICAL SUPPORT

• Awareness / Technical workshops and seminars

• Workshops on Standard Operating and Maintenance

Practices (SOP & SMP)

• Development of Feasibility Reports for Pipe Line Units

• Cost Analysis Benefit Study

• Replication Study

• Capacity Building Programs for Stakeholders

• Strengthening of Institutional

Arrangement for the Sector

• Awareness Trainings

• Training of Trainers

• Trainings for Foreman

• Life Cycle Analysis

Project Strategies Technical and Financial Support

Page 42: TiE Bangalore UNDP Energy programme and Enterpreneurship

The focus

1. Up-scaling Energy Efficiency interventions in about 300 SRRM

2. Piloting EE measures in Induction furnaces

3. Trialing second generation of technology packages in SRRM

Page 43: TiE Bangalore UNDP Energy programme and Enterpreneurship

PROJECT DETAILS

Implementing partner: UNDP

Budget [in USD]:

UNDP 950,000

AusAid 675,000

Ministry of Steel 2,000,000

Total 3,625,000

Leverages 40 million USD from private investments

[beneficiary industrial units]

Duration: Jun 2013-Dec 2014

Geographical Focus

Steel Rerolling Mill [Mandi Gobindgarh, Jaipur,

Coimbatore,Chennai etc.] and Induction furnace [Raipur, Mandi

Gobindgarh, Bhiwadi, Muzaffarnagar etc.] clusters across India

Page 44: TiE Bangalore UNDP Energy programme and Enterpreneurship

PILOTING EE MEASURES IN

INDUCTIONFURNACE 1000 Induction Furnaces exist in India, most common size is 8 to

15 Tons Per Hour

Electricity is used as energy to melt scrap and the average consumption is 720 kWh per ton

Scope exists for at least 10% energy reduction i.e. SFC can be reduced to 620 kWh per ton of scrap.

Identified technology options – provisional ◦ Scrap processing can improve energy performance leading to 30 to 40 kWh

per ton,

◦ Pre-heating scrap can reduce 90 kWh per ton of scrap melt

◦ Integrated digital system can improve energy performance – estimated to reduce 50 to 60 kWh per ton of steel.

◦ Training of workers as is key area for improvement by the association

◦ Radical change in energy performance is possible by using high temperature oxygen gasification for scrap melting. The current useful energy is only 8%.

Technology packages will be detailed out and

expression of interest will be sought from interested

units to pilot

Page 45: TiE Bangalore UNDP Energy programme and Enterpreneurship

Making the information and

knowledge products available

1. UNDP website project page developed:

http://www.in.undp.org/content/india/en/home/operations/p

rojects/environment_and_energy/ongoing-

projects/upscaling-energy-efficient-production-in-small-

scale-steel-indus

2. E-network launched [[email protected] ] – a network set up

to update on EE and inform about project events to steel sector

stakeholders

3. Technologies demonstrated in SRRM are available on youtube

◦ Steel film (overview, consolidated):

http://www.youtube.com/watch?v=nPtk5SXS7KQ

◦ All related films are on

http://www.youtube.com/user/ADCSFilms

◦ Direct rolling

http://www.youtube.com/watch?v=SIXkQYo2jSA

Page 46: TiE Bangalore UNDP Energy programme and Enterpreneurship

Summary of technical assistance

offered 1. Baseline energy performance report

2. Customized recommendation on Energy Efficient Technology Options

3. Technical assistance in implementation

4. Post implementation energy performance report

5. Training of shop floor level workers

6. Training on best practices (like 5S)

Recognition to participating units in the drive for energy efficient production ◦ It is proposed to recognize the contribution of all

participating units in the national drive to adopt energy efficiency. The recognition will be in the form of ‘certificate’ acknowledging implementing energy efficient technologies. This recognition will be jointly come from Ministry of Steel, Government of India & UNDP.

Page 47: TiE Bangalore UNDP Energy programme and Enterpreneurship

Financial package

Applicability Target Area No. of

Units

Targeted

Financial

Incentive

Financial

Incentive -

Max. per

Unit, Lakh Rs

Total

Lakh

Rs

Group-1

A

SRRM – low end

technology Pan India 130 20% 2 260

Group-1

B

SRRM – low end

technology Pan India 50

Consultanc

y 2 100

Group-2

SRRM – low end

technology-Mini

Scrap Based Mills

Bhavnagar/Indore/

Mandi

Gobindgarh/

Palakkad

50 Consultanc

y 2 100

Group-3

SRRM – high end

technology-Direct

rolling

Pan India 50 Consultanc

y 5 250

Group-4

A

Induction Furnace

(Model) To be selected 5 20% 40 200

Group-4

B

Induction Furnace

(Pipeline) To be selected 10 5 50

Group-5

SRRM-New

Generation

Technologies

Pan India 5 20% 20 100

Total 300

Page 48: TiE Bangalore UNDP Energy programme and Enterpreneurship

In summary

Steel re-rolling mills (SRRMs) constitute an important link in the overall supply

chain of steel in the country, supplying a majority of India’s long steel products. The

direct energy-use in the SRRM sector includes heating fuels (furnace oil, natural gas,

and coal) and electrical energy. Steel industry consumes 10% of total energy

consumed in India and SRRMs consume 11% of the energy consumed in steel

sector. The cost of energy in SRRM is estimated at 25%–30% of the overall

production cost. The Energy Efficiency interventions brought energy savings of 25

to 45% reduction. In summary, every SRRM invested about Rs 1.5 to 2 Crore [a

one time investment lasts for 10 to 20 years] and the cost of fuel saved exceeds Rs

1 crore annually. This ‘process document’ details out story of how technology

interventions were made in SRRMs. I along with two others are the editors of the

book Energy-Efficient Steel Re-rolling: How a pioneering project is transforming the

Indian secondary steel sector.

The above book is available at:

http://in.one.un.org/img/uploads/STEEL_BOOK_Low_res_for_upload.pdf

A video is also available on

http://www.youtube.com/watch?v=SIXkQYo2jSA

48

Page 49: TiE Bangalore UNDP Energy programme and Enterpreneurship

join us in in the

national drive on energy efficient steel

production 0

1000

2000

1

2

3

30 300

1890

THANK YOU

S N Srinivas, PhD

Programme Officer (Energy for Development)

United Nations Development Programme (UNDP)

No. 55, Lodi Estate

New Delhi – 110 003

Tel: 011- 4653 2251 (Direct)

Fax: 011- 2462 7612

E-mail: [email protected]

Website: www.in.undp.org

Join us in scaling up

Page 50: TiE Bangalore UNDP Energy programme and Enterpreneurship

ENERGY ACCESS

Page 51: TiE Bangalore UNDP Energy programme and Enterpreneurship

Energy Access

In India, 400 million people are without electricity. This translates to

lesser opportunities for better standard of living and even lesser

opportunities for entrepreneurship.

MNRE and UNDP to encourage entrepreneurship in these energy

deficient rural and peri-urban locales supported different business

models. These are available at:

http://www.in.undp.org/content/india/en/home/ourwork/environme

ntandenergy/videos/renewable-energy-entrepreneurship-for-

development.html

51

Page 52: TiE Bangalore UNDP Energy programme and Enterpreneurship

1. Scale Up of Access to Clean Energy for

Rural Productive and Domestic Uses 5-year project envisaged at three levels

Pilot districts – technology packages, institutional mechanisms

(district level committees) - about 3 districts per state for three

states

◦ Targetted at 30 unserved and 30 under-served villages (Assam or Meghalaya,

Madhya Pradesh, and Orissa or Jharkhand)

◦ Would supply thermal, electrical and mechanical energy needs; focus on energy

needs for domestic, irrigation, cooking and other economic activities including

commercial energy needs

◦ Validation of technology packages, business models, district level committees..

State-level (3-5 states)

◦ State Action Plans for Access to Clean energy

◦ Train 500 entrepreneurs, and develop 25 nos. Renewable Energy Service

Companies [RESCOs] for implementation and dissemination.

◦ Aims to improve productivity of 4,000 farmers through reliable irrigation .

Expects to extend some means of livelihoods to about 3000 individuals.

National level

◦ Coordination through Global Energy Access Centre (GEAC)

◦ Standards, testing and certification

1/10/2014 GKSPL /AIREC inception presentation 52

Page 53: TiE Bangalore UNDP Energy programme and Enterpreneurship

Project Components (as per PIF)

Investment financing for rural energy technology enterprises, and for end-users that promote productive applications (GEF grant: US $1.6 million)

Policy and institutional support for the promotion of access to modern and clean energy services (GEF grant: US $ 0.35 million)

Scale up and replicate access to clean and modern energy services in unserved and under served regions (GEF grant: US $ 1.2 million)

Awareness and Institutional capacity development

(GEF grant: US $ 0.68 million)

1/10/2014 GKSPL /AIREC inception presentation 53

Page 54: TiE Bangalore UNDP Energy programme and Enterpreneurship

Key stakeholders

MNRE Executing partner, policy (national)

UNDP GEF agency

State governments, SNAs Planning & Policy (state level)

District level agencies Planning, co-ordination, overseeing the

implementation,

PSUs, Private sector Financing through CSR, technical and

implementation support where possible

NABARD, KVIC, IREDA, Banks,

FIs, MFIs

Financing

NGOs, CBOs, social enterprises Implementation, community engagement

Energy enterprises Manufacturer, Technology & service provider,

1/10/2014 GKSPL /AIREC inception presentation 54

Page 55: TiE Bangalore UNDP Energy programme and Enterpreneurship

Schedule of consultations / workshops

Venue Date Focal participants Nodal person

Bhubhan

eshwar

Jan 17 Local users, entrepreneurs,

NGOs, govt

Rekha Krishnan/ Sameer

Maithel/ S P Gonchaudhuri

Bhopal Jan 21 Local users, entrepreneurs,

NGOs, govt

Rekha Krishnan/ Sameer

Maithel/ S P Gonchaudhuri

Guwahati Jan 24 Local users, entrepreneurs,

NGOs, govt

Sameer Maithel / Rekha

Krishnan

Chennai Feb 12 Suppliers, project developers Hemant Lamba / Sameer

Maithel /Rekha Krishnan

Delhi Feb 14 Financiers

N K Joshi / Rekha Krishnan

/ Sameer Maithel

Delhi Feb 17-

18

LFA - Sameer Maithel / Rekha

Krishnan

Delhi Feb 28 Summary of workshops Sameer Maithel / Rekha

Krishnan

1/10/2014 GKSPL /AIREC inception presentation 55

Page 56: TiE Bangalore UNDP Energy programme and Enterpreneurship

2. Increasing access to Renewable Energy for

Micro enterprises in Rural India

100 Rural

Micro

enterprises

TST

A

LSP Dea

ler

Dealer

Support

Agency

MNRE UNDP

PMU

Deal

er

Page 57: TiE Bangalore UNDP Energy programme and Enterpreneurship

3. Work with Members of

Parliament

57

Promotion of RE based Power Generation in Off-

Grid Areas

3.1 Access to electricity for all gets legal backing

3.2 Role of RE in providing access to electricity in off-grid

rural areas

3.3 Options of electrification in off-grid areas

3.4 Estimate of the number of off-grid villages and hamlets

at the aggregate National level

3.5 Estimate of electricity generation necessary to provide

sustenance electricity per household in 11438 villages

3.6 Approaches to Fill the Gap Between Retail Consumer

Tariffs in the Rural Areas or Consumers’ Paying Ability and

Cost of Supply in Rural Areas Through RE

Page 58: TiE Bangalore UNDP Energy programme and Enterpreneurship

Dr S N SRINIVAS

Programme Officer (Energy for Development)

United Nations Development Programme (UNDP)

No. 55, Lodi Estate

New Delhi – 110 003

Tel: 011- 4653 2251 (Direct)

Fax: 011- 2462 7612

E-mail: [email protected]

Website: www.in.undp.org