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Providing Power to
the People Hari Sharan, Co-Chair, DesiPower
D esiPower
has been working on a program for providing electricity and energy
services in villages jointly with local partners who establish local
small scale industries, businesses and agro-forestry for value
addition and job creation. In order to ensure that both the
enterprises become self-reliant and profitable within a reasonable
time, the "Business Plans" of the Independent Rural Power Producer (IRPP)
and the village organisation (which may be the village Panchayat, a
company, a co-operative, or a NGO) are evolved jointly and
simultaneously. For commercial success, the power plant has to sell
as much electricity as it can generate and the villagers have to
produce and sell their products profitably. The IRPP ensures the
reliable and affordable supply of electricity and energy services
based on locally available renewable energy resources such as
agricultural residues and other biomass. The local partner
organisation, on its part, ensures the supply of the biomass and the
purchase of adequate amounts of electricity at agreed prices. A
women’s group is encouraged and supported to take charge of the
energy service activities such as cooking and lighting for
households.
A mutually beneficial partnership is
thus created under which reliable power supply and energy services
ensure local job creation and income generation, while the assured
off-take of power and energy services ensures a profitable operation
of the IRPPs.
Cluster Centres
The ultimate target is to install IRPPs in
neighbouring villages with a total capacity of about 1 MW. The IRPPs
and the village industries pay a small extension service fee to the
Cluster Centre and, once all the villages are operational, make it
self-supporting. DesiPower has been working on the concept of a
"Cluster Centre" which is one of the cornerstones of its
decentralised rural development strategy for supporting the
managerial and technical sustainability of this programme. The
Cluster Centre is active right from the start by working closely
with the villagers to promote the local activities.
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A EmPP© project
implemented with BOVS, a village job-creation industrial
co-operative in Baharbari, Bihar |
Once the site is selected, DesiPower develops
and builds the IRPP package on the basis of the local conditions and
helps the villagers develop the local organisation and micro
industries. Subsequently the Cluster Centre takes the responsibility
to provide a comprehensive set of "Extension Services" which include
technical and managerial training, performance audit of the plants
on a continuous basis and refresher courses.
Field Experience
DesiPower has either built or is building 11
biomass gasification based power stations as IRPPs for villages and
plantations, and as captive power plants for industries and
technical universities. The experience of the technical and
financial performance of the gasification based power plants, the
problems
of packaging IRPPs and the even more complex
problems of packaging IRPPs with local enterprises have been
analysed and evaluated to formulate Empower Partnership Projects.
The list of Biomass Gasification Plants is illustrated.
Financial, Social and Ecological Performance
EmPower Partnership Projects have now been
implemented in three villages. The results in one of the villages
where he project is most advanced clearly show that the combination
of energy supply and value addition / employment generation within
one integrated program brings the expected financial, social and
ecological results. A two year development and consolidation program
is underway with support from the Shell Foundation to quantify these
results and make them available for large scale replication of
EmPower Partnership model in many more villages.
Benefits of DesiPower
Local benefits
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Cheaper and cleaner than diesel generation. |
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Cheaper than industrial and commercial tariffs in many states. |
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More
reliable and of better quality than grid supplies. |
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Cleaner than fossil fuel fired plants. |
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Smokeless cooking energy. |
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Cheaper and cleaner process energy from waste heat. |
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Nearly eliminates the consumption of diesel oil in generator
sets and substantially reduces the cost of electricity generated
by them. |
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Local value addition of local resources accelerates the village
development process |
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Income from local renewable energy resources, including unwanted
weeds and agro-residues. |
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Promotes sustainable local livelihoods (operation of the power
plant, jobs in new local micro-enterprises and small-scale
industries). |
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Higher agricultural production
with adequate and timely water supply.
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National and global benefits
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Makes reliable and clean electricity available in rural areas
which would otherwise continue to subsist without economic and
social progress. |
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Contributes to the reduction of migration to cities. |
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Reduces the share of fossil fuels in the national energy
balance. |
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Reduces the share of coal-based electricity supply, the
consequent pollution and the resulting over-stretching of the
inadequate infrastructure. |
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Reduces
diesel consumption and air pollution, and the outflow of foreign
exchange. |
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In
short, promotes national sustainable development. |
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Helps reduce the risks of climate
change by supporting directly the national and global efforts to
stabilise the level of CO-2 in the biosphere. |
A Typical "Triple Bottom Line" Performance of
an EmPower Partnership Project
(with a 50 kWe biomass gasification power
plant)
|
Machines and Equipment |
Economic Performance |
Social Performance |
Ecological Performance |
|
Investment in Rs. (Lacs) |
ROI % (Profit as % of Investment) |
Total Direct Jobs |
Investment per job
Lacs / Job |
Jobs for Women |
Other Impacts
(e.g. Health) |
Reduction
of Local Pollution |
Reduction
of CO2 Emissions |
Much Lower Cost of Saving CO2 Emissions |
|
Grants received for investments is given to the project as a
loan which is paid back to a Revolving Fund and used for new
projects. |
These figures are quantified in the Project Feasibility
and Packaging Report |
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Briquetting
Machine 125 Kg |
4.5 |
6.0 |
2.1 |
2.1 |
Yes |
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Yes |
Yes |
Yes |
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Four Nos.
Additional New Pumps with power lines |
4.0 |
17.0 |
1.1 |
3.6 |
Yes |
|
Yes |
Yes |
Yes |
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Old Pumps |
0.5 |
51.0 |
1 |
0.5 |
Yes |
|
Yes |
Yes |
Yes |
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Paddy Processing |
15.0 |
8.0 |
5.5 |
2.7 |
Yes |
Yes |
Yes |
Yes |
Yes |
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Fishery
|
1.5 |
15.0 |
1 |
1.5 |
|
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Tree Planting |
2.5 |
3.5 |
1.5 |
1.7 |
Yes |
|
Yes |
Yes |
Yes |
|
Power Plant |
30.0 |
10.0 |
5 |
6.0 |
|
|
Yes |
Yes |
Yes |
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Other Small Energy
Service Units |
5.0 |
10.0 |
2 |
2.5 |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Total EmPower Partnership Project |
63.0 |
9.8 |
19 |
3.3 |
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Baharbari gasifier / Baharbari dual fuel
engine |
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Future Plans
The experience of the first phase is being
used to define and formulate the next phase of implementation of
DesiPower’s rural "EmPower Partnership©" Programme. A project to
fine tune the business plan is underway in three cluster centres
under a grant from Shell Foundation, London. The progress of new
investments and training is being continuously monitored and
evaluated in the three villages for defining the conditions for a
large scale replication of the programme. Discussions on the
financing of new projects in other villages in these clusters and in
new locations are also underway. In this context, the recent
decision of the Government of India to electrify 18000 remote
villages with renewable energy provides an ideal opportunity for
integrating the MNES program with those of other ministries dealing
with rural development and rural jobs under an EmPower Partnership
model.
DESI Power
List of Biomass
Gasification Based Power Plants
Commissioned / Under-Commissioning in November 2002
|
No. |
Project Name |
Location |
Year of Installation |
Capacity |
|
1 |
DESI
Power Orchha |
Orchha, MP |
1996 |
80 kWe |
|
2 |
Baradhara |
Baradhara, Orissa |
2000 |
100
kWe |
|
3 |
BOVS,
Baharbari |
Baharbari, Bihar |
2001 |
50
kWe |
|
4 |
MVIT
Phase I |
Yelahanka, Bangalore |
2002 |
120
kWe |
|
5 |
MVIT
Phase II |
Yelahanka, Bangalore |
2002 |
120
kWe |
|
6 |
G.B.
Engg Enterprises |
Trichy, Tamil Nadu |
2002 |
120
kWe |
|
7 |
WSD,
Varlakonda |
Kolar, Karnataka |
2002 |
50
kWe |
|
8 |
G.B
Food Oils |
Trichy, Tamil Nadu |
Under
Commissioning |
120
kWe |
|
9 |
VIT |
Vellore |
Under
Commissioning |
120
kWe |
DesiPower expects that very soon there will a
large enough number of villages with successful EmPower Partnership©
Programmes to make these rather unique projects attractive for
private and institutional investors. A part of the investments can
also be raised through the integration of these projects in the CDM
and Joint Implementation mechanisms of the Climate Change
Convention. A beginning has been made through the selling of
voluntary CO2 emission certificates from these projects. It is
expected that the equity contribution of the local partner can be
raised by the advance selling of the savings of CO2 emissions for a
number of years.
q
For detailed information on Empower
Projects, write to:
arunkumar@sdalt.ernet.in
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