Providing Power to the People

Hari Sharan,          Co-Chair, DesiPower


DesiPower 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.

 

 

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

l Cheaper and cleaner than diesel generation.
l Cheaper than industrial and commercial tariffs in many states.
  More reliable and of better quality than grid supplies.
l Cleaner than fossil fuel fired plants.
l Smokeless cooking energy.
l Cheaper and cleaner process energy from waste heat.
l

Nearly eliminates the consumption of diesel oil in generator sets and substantially reduces the cost of electricity generated by them.

l Local value addition of local resources accelerates the village development process
l Income from local renewable energy resources, including unwanted weeds and agro-residues.
l

Promotes sustainable local livelihoods (operation of the power plant, jobs in new local micro-enterprises and small-scale industries).

l Higher agricultural production with adequate and timely water supply.

National and global benefits

l

Makes reliable and clean electricity available in rural areas which would otherwise continue to subsist without economic and social progress.

l Contributes to the reduction of migration to cities.
l Reduces the share of fossil fuels in the national energy balance.
l

Reduces the share of coal-based electricity supply, the consequent pollution and the resulting over-stretching of the inadequate infrastructure.

l  Reduces diesel consumption and air pollution, and the outflow of foreign exchange.
l In short, promotes national sustainable development.
l

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
Briquetting Machine 125 Kg 4.5 6.0 2.1 2.1 Yes   Yes Yes Yes
Four Nos. Additional  New Pumps with power lines 4.0 17.0 1.1 3.6 Yes   Yes Yes Yes
Old Pumps 0.5 51.0 1 0.5 Yes   Yes Yes Yes
Paddy Processing 15.0 8.0 5.5 2.7 Yes Yes Yes Yes Yes
Fishery 1.5 15.0 1 1.5          
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
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          

 

 

Baharbari gasifier / Baharbari dual fuel engine

 

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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