Universal Access to Energy

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Universal Access to Energy

The Indian Imperative

November 2010

www.deloitte.com/in

8th Knowledge Millennium Summit

2010-2020: DECADE OF INNOVATIONSRENEWABLE ENERGY, FOOD SECURITY,

HEALTHCARE & WATER


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THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIACorporate Office: 1, Community Centre, Zamrudpur, Kailash Colony, New Delhi - 110 048Phone: 011-46550555 (Hunting Line) Fax: 011- 46536481/82 46536498E-mail: [email protected] Website: www.assocham.org

MESSAGE

It gives me great pleasure to note that The Associated Chambers of Commerce

and Industry of India is organizing the 8th Knowledge Millennium Summit 2010-

2020: Decade of Innovaons on November 17-18, 2010 at New Delhi. This Summit

is significant because it is encompassing all the important sectors like food security,

healthcare, energy & water.

India as a naon offers tremendous opportunies to commercialize the innovaonsalready iniated by a number of companies across the globe as well as the innovaons

parcularly suited to the demography of India. As a market of over a billion people,

there is no beer place for the innovave companies to explore the Indian market and

use this as an opportunity to innovate and commercialize their offerings parcularly

in the fields of healthcare, food security, agriculture, energy and water.

I congratulate ASSOCHAM for holding a Summit dedicated to innovaons in these

fields and I wish the Summit a great success.

Dr (Mrs.) Swa Piramal

President

ASSOCHAM


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THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIACorporate Office: 1, Community Centre, Zamrudpur, Kailash Colony, New Delhi - 110 048Phone: 011-46550555 (Hunting Line) Fax: 011- 46536481/82 46536498E-mail: [email protected] Website: www.assocham.org

ACKNOWLEDGEMENT

I

t gives me immense pleasure that ASSOCHAM with the support of Ministry of

Science & Technology is organizing the 8th Knowledge Millennium Summit 2010-2020: Decade of Innovaons.

The 8th Knowledge Millennium Summit is of parcular significance and importance as

it is focused on innovaons in the decade of 2010-2020 which will drive the future of

the country and world at large.

ASSOCHAM by organizing this Summit intends to harness the potenal of innovaons

in sectors like food security, healthcare, energy, and water.

I thank Planning Commission, Ministry of Science & Technology, Ministry of WaterResources, Ministry of Food Processing Industries, Ministry of Earth Sciences, Ministry

of New & Renewable Energy, Department of Bio Technology, Indian Council of Medical

Research, Council of Scienfic & Industrial Research, Indian Naonal Science Academy

and the States of Karnataka, Gujarat & Maharashtra for their support. I also thank

our Knowledge Partners Deloie, Ernst & Young, Frost & Sullivan & IIM Lucknow for

their wonderful efforts in pu ng up the reports on Energy, Water, Healthcare & Food

Security respecvely. I also wish to thank our all Sponsors & Media Partners for their

overall support.

I not only wish the Summit a great success but also assume that ASSOCHAM shall

connue to organize such programs for larger public benefits with great degree of

excellence.

(D.S.Rawat)

Secretary GeneralASSOCHAM


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A majority of the Indian population lives in

numerous villages scattered all over India.

According to the census conducted in 2001,

a staggering 74% of Indian population lives

in these villages. Most of the villages lack

infrastructure and have difficult living

conditions. Some are remote and are

inaccessibly by road, while a few are so

deep into the forests that no trace of

urbanization is even seen among the rural

population inhabiting those villages. In the

past decade, a number of them have

migrated to the cities to the lure of a better

life. Even though a huge number of rural

populace has migrated to the urban

centers, still a large share of the Indian

population resides in the villages. Most

recent survey shows the rural population at

72.2%, proving that even today the majority

of the Indian population lives in villages and

this is bound to change at a slow pace in

the next few decades.

Though the Indian population has been

growing at a rate of 1.55% since 1961, its

energy consumption has been growing at a

rate of over 6% Compunded Annual Growth

Rate (CAGR_ between the years 2004-

2008, mainly driven by its economic growth,

which has been estimated by International

Monetary Fund (IMF) to reach

approximately 9% next year. Considering

that the economic growth is sustained for

the next few years, the energy requirement

for India is pretty high.

It may be hard to believe but approx 1.6

billion people in the world have no access

to energy and one third of them are in India.

Lack of access to energy is a serious

hindrance to social and economical

development. Cost effectiveness is also an

important factor to increase the access to

the poor in remote areas as most of the

people in remote rural areas depend on

biomass, including wood, charcoal, tree

leaves, crop residues and animal dung. And

the share of people relying on biomass is

one of highest in India. Extending the grid in

rural areas may not be cost effective hence

small, stand alone renewable energy

technologies can often meet the needs of

the rural communities in a cheaper manner

and it also has the potential to displace

relatively costly crude based captive power

generation. The focus of this report is to

discuss rural energy scenarios in India and

the need of technological innovations in

increasing universal access to energy.

Introduction

Coal41%

Oil24%

Natural Gas5%

Hydro2%

Nuclear1%

Renewable27%

Total Energy Consumption of India

Figure 1 Energy Mix of India (Source: IEA)


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Renewable Energy shown in the energy mix above constitutes amongst others

Solar, Wind, Biomass. Further splitting down the renewable energy mix, we

can observe from the table that there is immense potential to use the

renewable energy to provide electricity to the rural regions.


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No Programmes/Systems EstmatedPotential

Achievementduring 2009-10

CumulativeAchievement

I Power From Renewables

A Grid-interactive renewable power

1 Biomass Power (Agro residues & Plantations) 16,881 126,50 MW 829.50 MW

2 Wind Power 45,195 683.00 MW 10.925.00 MW

3 Small Hydro Power (up to 25 MW) 15,000 129.00 MW 2,558.92 MW

4 Cogeneration-bagasse 5,000 259.00 MW 1,308.00 MW

5 Waste to Energy (Urban & industrial) 2,700 4.72 MW 65.01 MW

6 Solar power 50 MW/sq.km 6.10 MW 9.13 MW

TOTAL 1,208.47 MW 15,694.56 MW

B Off-Grid/Distributed Renewable Power including captive/ CHP plants

7 Biomass / Cogeneration (non-bagasse) 39.,80 MW 210.57 MW

8 Biomass Gasifier 4,10 MWeq 109.62 MWeq

9 Energy Recovery from Waste 9.32 MWeq 40.25 MWeq

10 Solar PV Power plants 105.15 kWp 2.410 MWeq

11 Aero-generator / hybrid systems 105.00 kW 0.954 MW

TOTAL 53.43 MWeq 363.804 MWeq

II Decentralized Renewable Energy system

12 Family Type Biogas Plants (nos) 120 Lakh 51,732 41,85,442

13 Solar Photovoltaic SystemI. Street Lighting Systems (nos)II.Home Lighting Systems (nos)III.Solar Lanterns (nos)

8,88071,63282,999

88,2975,84,4617,92,285

14 Solar Thermal programmeI.Solar Water Heating Systems- collector area (m2)II.Solar cookers (nos)

140 million0.50 million0.02 lakh

3.40 million6.39 lakh

15 Wind Pumps (nos) 5 1,347

16 Solar Photovoltaic Pumps (nos) 106 7,334

III Remote Vil lage Electrification 703 villagesand

halmets

5000 villages/1257 halmets

IV Other Programmes

17 Energy Parks (nos) 3 513

18 Aditya Solar Shps (nos) 9 302

19 Batter operated Vehicles (nos) 1 305

Mweq = Megawatt equivalent, MW= megawatt, KW= Kilowatt,kWp= Kilowatt,peak; sq=square meter

Figure 2 Details of Estimated Renewable Energy potential, Achievement & Cumulative Achievements under different Programmes(as on 31.12.2009) (Source: Ministry of Renewable Energy, Government of India)


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Tradition fuel is a term that is used to

describe fuels such as wood, charcoal,

dung, and biomass (among other

materials). These fuels have been used

before the industrial age and are used

today in various rural areas of the world.

These traditional fuels are also called bio-

fuels sometimes. The modern fuels refer to

the usage of liquid fuels, coal, electricity,

renewable energy, etc. Very often we hear

about policies and effects of the modern

fuels. Most of the policies are

overwhelmingly associated with production

and consumption of modern energy forms.

While the world focuses on the modern

energy forms, it is often forgotten that over

a half of the developing countries lack

access to the modern energy sources.

Over 2 billion people in the world survive on

the traditional fuels such as animal dung,

wood, charcoal, etc. for cooking, and an

equal number lacks access to electricity. It

is a well known fact that wood, charcoal,

have very low efficiencies (e.g.: gas is

approximately 10 times more efficient), and

burning of wood also poses a threat to the

health of the population due to inhalation of

smoke. A few studies have shown that

affordable interventions, such as a use of a

stove with traditional fuels can reduce

respiratory infections among infants and

young children. Wood usage also

encourages deforestation, thereby

adversely affecting the environment.

Not only are these traditional fuels

economically beneficial, as they require a

large amount of time invested in collection

and gathering, but also are detrimental to

the rural society. Though traditional fuels

can be used more efficiently and in ways

less damaging to the environment and to

peoples health, much of the time and

money has not been invested because of

the focus on modern energy fuels.

The definition of access to energy

accepted by the United Nations is as

follows,

Access to modern energy can be defined asa households ability to obtain an energy

service, should it decide to do so. Access is

a function of availability and affordability.

For energy to be considered available to a

household, the household must be within

the economic connection and supply range

of the energy network or supplier.

Affordability refers to the ability of the

household to pay the up-front connection

cost (or first cost) and energy usage costs.

A high up-front cost may discourage poor

households from making a switch to a

modern energy form.

With the global population on the rise the

overall energy consumption is bound to

grow. Most of the requirement is bound to

come from the urban sector due to theindustrial growth and also due to an

increased percentage of urban population.

Though the population of a few countries is


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higher than the population of the developed

countries, the per capita consumption is

miniscule in comparison. Though the PPP

adjusted GDPs paint a positive picture the

per capita consumption of these nations tell

us a different story. This proves that there is

a section of the society which has a

requirement and that requirement is not

met. This is an uncontested space and is

left to be explored. Already this uncontested

market has attracted a few people and is

driving the movement to provide the rural

population with affordable energy.

Figure 3 Global Energy use (kg of oil equivalent per capita) (Source: World Bank Data)

Figure 4 Global Electric power consumption (kWh per capita) (Source: World Band Data)


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India is country of extremes. It is a home to

one of the richest men of the world, and

also has a very high percentage of poor.

Per capita income levels in India are among

the lowest of all the nations in the world.

One of the reasons that can be attributed to

this poverty is the fact that its rural

population is energy poor. Lack of access to

modern energy services is a direct outcome

of income poverty. The poor cannot afford

to pay for the modern energy systems, and

hence cannot improve their income levels,

thus giving birth to vicious cycle. Their

inaccessibility to modern sources of energy

is also because of the locations they live in.Most of the poor live in sub-standard

houses, in remote locations, which make

them, unfit to be connected to the modern

energy systems. Lack of proper roads and

other infrastructure makes it even more

difficult to provide these energy systems.

Therefore, un-affordability and

inaccessibility are the main reasons the

poor dont have access to modern energy.

Energy not only provides light and access

to modern electrical appliances but as an

effect can cause a huge effect on economic

development, livelihoods, social dignity, and

environmental sustainability. There have

been studies that relate the high access of

energy to the reduction of poverty. To break

free from the vicious cycle of linked events,

the United Nations Development

Programmes (UNDP) has listed a set of

Millennium Development Goals (MDGs). A

lot of organizations and NGOs have taken

the MDGs seriously and identified their

linkage to energy access. Though everyone

is aware of the linkages between the

development and energy access, not many

national and international actions have

taken place in this direction. Mainly the

supply-side has dictated the energy

development, while the demand-side has

always been neglected. There is a demand

that exists at the bottom of the pyramid, and

a business directed at achieving this can

not only reap benefits but can also see an

eco-sociological change among the millionsand influence the life of many.

Energy service for sustainable development

has not been the focus of energy planning

until recently. The focus of energy sector,

ever since the discovery of modern fuels,

has been on to expand the capacities of oil

refinery capacities, and on maintaining a

steady supply of fossil fuels. After amassive price fluctuation of the modern

fuels, the urban population understands the

need to develop of sustainable energy

alternative. This is a positive development

for the rural population, as it will spur

research to develop cost-effective solutions

that not only are reliable but also

sustainable.

A report by National Sample Survey of India

(NSSO) in 2007, three quarters of the

Indian villages were electrified, but only

Rural Energy Scenario in India


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55% of the households had access to

electricity, while the remaining mainly were

dependant on kerosene for lighting. The

situation for modern cooking fuels was

graver. Only a 10th

of the rural households

had access to LPG, and the majority ofthem depended on biomass for their

cooking energy needs. This disparity in the

availability of modern cooking fuels

presents a pressing issue that needs to be

addressed to change the lives of these rural

households.

LowIncome

MiddleIncome

HighIncome

Total

Biomass 44.3 59.7 10.5 114.5

LPG 0.4 5.2 7.5 13.1

Dung 5.0 7.3 1.5 13.8

Kerosene 0.2 1.0 0.8 2

Coal 0.5 0.6 0.2 1.3

Biogas 0.0 0.2 0.2 0.4

Electricity 0.0 0.0 0.0 0.07

Others 2.7 3.3 1.5 7.5

Total 53.1 77.33 22.24

Figure 5 Number of rural households using a particular energy

carrier as a primary cooking fuel (Source: NSSO 2007)

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Low Income

Middle Income

High Income

Number of Rural Households' source of cooking energy (in millions)

Biomass

LPG

DungKerosene

Coal

Biogas

Electricity

Others

Figure 6 Number of rural households using a particular energy carrier as a primary (Source: NSSO 2007)


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As seen from the graph above, a maximum

percentage of the cooking energy can be

attributed to biomass. The dominance of

biomass is due to the ready availability of

the sources of biomass (including cattle

dung) in rural India. A very small

percentage of fuels that are seen in the

figure above can be attributed to modern

fuels such as LPG, Kerosene, etc.

According to the National Sample Survey

Organisation (NSSO), approximately 84%

of the cooking fuel requirements in the rural

households are met by Biomass. A very

small percentage of modern fuels are used

in the rural households. Biomass is

expected to retain the dominance among

the rural cooking fuels for the foreseeable

future. A study, conducte by Planning

Commission in 2006, estimates the

percentage of Biomass to remain at 52% in

2031-2032. The remaining demand is

forecasted to be met by the modern fuels

and other sources.

An analysis conducted by the Harvard

Kennedy School shows the relationship

between the modern cooking fuels and the

rural household incomes. The relationship

between rural energy poverty and income

poverty is quite evident when one looks at

the graph depicting the access of energy in

relation to the Monthly per capita

expenditure.

Biomass,84.1%

Kerosene, 1.3%

LPG,8.6%

Others,6.0%

Figure 7 Rural Cooking FuelDependencies (Source: NSSO 2007)


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The two graphs above portray a very

disheartening picture. The percentage

access to modern fuels indeed depends on

the income levels and the difference of

percentage access to modern fuels

between the urban and rural population has

been growing since the 80s. Though the

government is promoting higher penetration

in urban and rural population, the rate ofpenetration should be higher in the rural

populations to decrease this glaring

difference between rural and urban modern

fuel access.

Figure 8 Access to modern energy carriers for cooking andrural poverty in 2005 (Source: Harvard Kennedy School)

Figure 9 Trends in household access to modern cookingfuels (Source: Harvard Kennedy School)


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Small/Mini/Micro HydroTechnology

Water has always served a source of

development. It is used for irrigation and

farming, it is used for consumption, and it is

used for washing and other miscellaneouspurposes. It has a ubiquitous presence,

barring a few regions in the world, and over

the years has served as a force of nature.

Water power can be harnessed in many

ways. But all the ways in principle are

controlling the rate of flow of water that is

directed to a turbine, which in turn

generates electricity. Dams have been built

to control the flow rate of water and produce

large quantities of electricity. Recently,

research is being done in the field of ocean

energy. This research aims to capture the

energy of the ocean waves thereby adding

a sustainable energy source to the energy

portfolio of the world. Small hydro power is

no different from the hydro power

generation, except for the fact that it

produces small amount of energy and does

not require huge capital costs that the larger

hydro projects require. Small Hydro

Projects (SHP) typically produce 5KW

15MW of electricity.

Small Hydro Projects (SHPs) are

advantageous to rural conditions because

of their small size and portability. Time and

again, projects in remote villages have

proven the effectiveness of these SHPs.

SHPs have been set up in villages that lie

on the banks of rivers, and where the flow

of the river can be used to harness

electricity. A typical small hydro projectrequires a settling tank, a forebay tank, a

penstock for the water to flow, a

powerhouse containing the turbine at the

end of the penstock, and cables to

distribute the energy.

Depending on the end user requirement,

the power from the turbine can be directly

used for mechanical purposes or can be

connected to an electric generator to

produce electricity. Many rural industrial

applications require the raw mechanical

power to grind, mill, etc. and some also do

require electric power. For domestic use,

the power generated by the electric

generator can be sent to different homes

via an electricity distribution system, or can

be supplied via batteries, which can beperiodically charged at the turbine.

Steep rivers flowing all around the year

provide an ideal condition for a SHP.

Usually such conditions exist in villages in

and around the hills, and in various valleys.

In India, the Hind-Kush Himalayan region is

an idea set up for the small hydro project.

Avenues of Rural Energy Distribution


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head makes it convenient to many

households. These systems are small and

can be maintained by the household on a

day to day basis. Because of the simplicity

of installation, often the safety aspect is

overlooked, creating a hazardous situationoften. As the power cannot be regulated by

these pico-hydro systems, a power surge is

a possibility and this surge may destroy the

appliances using the power generated.

These pico-hydro systems generate

approximately 1KW-5KW of electricity and

are mainly used to for lighting. A few larger

pico-systems have also been used to power

televisions, CD players, video players, etc.

Innovative business models can also be

used to make SHPs more attractive to the

rural community. A business model that

leases out a small-hydro system to a rural

community as a whole will reduce the

capital investment by the rural folk and

make it attractive. The project can cover its

costs by delegating the responsibility to thecommunity leader, who can collect the

monthly rental from all the individuals who

use the electricity generated. A flat rate

system can be used to level the field for

everyone. Since the energy usage is limited

to a few appliances in the rural regions, a

simple tariff system can be developed

which would not require any metering. This

collaborative model includes everyone inthe village as a share holder of this project

and once the community sees the benefits

of having electricity, it will appreciate the

project even more.

SHPs have been used across the globe in

countries such as Nepal, Sudan, Peru, etc.

and have successfully helped the rural

community and bettered the lives of the

many in that community. India has a large

percentage of low-income population and a

large percentage of rural population that

can benefit from the Small Hydro Projects.

Private participation may be encouraged in

this segment by providing tax incentives, or

by encouraging CSR activities in the

burgeoning economy.


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Solar

Electricity consumption in India, currently

about 600 Twh annually, is set to double by

the next decade; by then it would have

surpassed Russian levels in the process

and in order to supply this extra electricity,

total generating capacity needs to increase

substantially by 332 GW to 488 GW.

Coal, which already provides almost 52% of

Indias power, is expected to remain the

dominant primary fuel. With Indias

commitment to the world on its per capita

carbon emission targets and reducing

carbon intensity by 20-25%, openings exist

for renewable, nuclear and gas power to

increase their share in the fuel mix for the

additional power capacities.

India's geographical location coupled with

various schemes and incentives announced

by the government is aimed at accelerating

the growth momentum of the Indian solar

power Industry from both capacity and

generation perspective.

The Government through the Jawaharlal

Nehru National Solar Mission (NSM),

launched in January 2010, has set a target

of setting up 20,000 MW of solar power by

2022. The Government of India (GoI) has

initiated many schemes such as providing

subsidy, tax holiday and accelerated

depreciation for power producers,

concessional duty on the imports of raw

material, soft loan, elimination of excise

duty on specific devices/systems, etc. to

increase the production as well as use of

solar energy in the country. Given that the

focus of the latest regulations is directed at

developing generating capacity, the

incentive mechanisms are considered on a

normative cost plus basis where offerings of

higher tariff to solar power producers

considers an attractive pre-tax return on

equity of 19% for first 10 years and 24%

thereafter.

Apart from this, the NSM has set a target of

establishing 20 million square meter solar

collector area and 2000 MW of distributed

off-grid applications by the end of 2022.

Additionally, the Special Incentive Package

(which expired in March 2010) under the

Semiconductor Policy in India had attracted

investments to the tune of USD 18 billion by

manufacturers of PV equipment. Similar

policy is also being considered for Solar

Thermal equipment manufacturing.

Investors in solar power also stand to gain

greatly from the implementation of a

renewable energy certificate trading system

as it could augment the chances of the

development of solar farms, which are

currently dependent on government

subsidies.

India has one of the largest power

generation capacities; however, it still is one

of the lowest consumers of power on a per

capita basis at about 610kwh. Given that

typically power consumption is a supply-

centric phenomenon in large developing


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countries, India has a long way to go before

even parity between peak power supply and

demand may be achieved.

____________________________________Our people have a right to economic and

social development and to discard the

ignominy of widespread poverty. For this we

need rapid economic growth. But I also

believe that ecologically sustainabledevelopment need not be in contradiction to

achieving our growth objectives. In fact, we

must have a broader perspective on

development. It must include the quality of

life, not merely the quantitative accretion of

goods and services. Our people want higherstandards of living, but they also want clean

water to drink, fresh air to breathe and green

earth to walk on.- Dr. Manmohan Singh, Prime Minister of India


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In light of this vision, India subscribes to the

view of a global goal for temperature

increase not to exceed 2 degrees Celsius

by 2050 from mid-19th century levels. India

has been working towards a sustainable

development of the economy keeping in

mind the resultant impact on climate

change.

India has committed targeting a further

emissions intensity decline of 20-25% by

2020 on 2005 levels. It has declared that its

per capita emissions will never exceed the

per capita emissions of the developedcountries even after accounting aggressive

emission reduction targets of such

countries.

India also has a strategic and economic

reason to focus on renewable energy, in

particular solar:

En-cash upon the vast renewable

resources including solar, hydro, wind

and biomass available within the

country

Address energy security by reducing

its dependence on imported feedstock

Control rising carbon emission from

new power generating capacities

Meet the Power for All by 2012 target

by reaching remote locations which are

difficult or economically unviable

through distributed systems

Utilize the opportunity to become a

manufacturing and R&D hub for solar

power globally

Reduce capital cost of solar power

With this objective of addressing climate

change issues and at the same time

managing economic growth, the

Government has prepared the National

Action Plan on Climate Change (NAPCC)

with the objective of preparing a strategy

and action plan for adaptation and

mitigation mechanisms for India to addressthe climate change challenge.

The strategy of NAPCC is focused on:

Increasing the proportion of renewable

energy sources in fuel mix of the new

capacities created to meet growing

power demand

Promoting energy efficiency

Conservation of national resources

Increasing carbon sink

For the purpose, NAPCC has identified 8

missions of which the first one launched is

the Jawaharlal Nehru National Solar

Mission.

Amongst all the renewable resources

potential available within India, Solar has

the maximum potential; it is the least tapped

despite having some of the more favorable

conditions globally.


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With NAPCC targeting a 5% share of

renewable energy purchase in total energy

in 2009-10 and increasing by 1% every year

for next 10 years, solar power is expected

to gain a major share of this demand.

India has one of the worlds highest solar

intensities in the world with annual solaryield of 1700 to 1900 kwh per kwpeak

(Kwh/Kwp). This is equivalent to 5,550

trillion Wh energy potential per year.

Blessings of the Sun on India:

Most of the country receives more than 4

kWh/m2 /day

About 300 sunny days in the most part of

the country

Solar Thermal and Photo Voltaic, both

can be harnessed

It is interesting to note that, even with

tapping 1% of the land area at 10%

efficiency factors it is expected to generate

around 54 billion Whrs of power per annum.

However, current installed capacity of grid-

connected solar power within the country is

only about 6 MW.

In order to leverage this key solar

advantage, the NSM has set an aggressive

target of creating 20 GW of solar power

generation capacity by 2022. To facilitate

this process of enabling development of

both capacity and generation as planned,

the Government of India is taking various

steps which are positively directed with

articulating a Mission Statement followed up

with a revamp of the Regulations focused at

increasing serious participation in the

sector.

Figure 2 Solar Radiation map of India


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Though blessed with a large number of

sunny days, the penetration of solar energy

has been limited in India. Rural households

particularly present ideal conditions for the

usage of photovoltaic systems. Photovoltaic

systems are portable, increasingly

affordable and require minimal

maintenance. Aside from pollutants

expelled during the manufacturing process,

photovoltaic systems did not create a waste

stream. By converting a free and abundant

source of energy into direct current

electricity, photovoltaic technologies may be

used to power a wide variety of appliances

from basic lighting to refrigerators.

Photovoltaic systems may be installed by

an individual household or may be linked

together to form a grid with sufficient energy

production to power an entire community.

Finally, when linked with appropriate

financing mechanisms, photovoltaic

systems represent a cost-effective tool for

securing needed electrical capacity.

Photovoltaic technologies hold great

potential for extending electrification into

rural areas of developing countries. Certain

projects in Africa, with the help of Rural

Energy foundation, were successful in

setting up satellites that connected these

remote villages to the rest of the world. This

connectivity not only helped the young to

gain knowledge from around the world, but

also provided the rural community a feelingof connectivity to the rest of the world.


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Another organization that has made use of

solar energy to uplift the life of a rural

household is Solar Electric Light Fund

(SELF). SELF believes that energy access

is a human right, and without the access to

energy community development becomes

almost impossible. SELF is currently

assisting in using cost-effective photovoltaic

systems and LEDs for a project called $300

house, which plans to provide model

homes for the urban slum dwellers. This

model house aims to capture all the basic

requirements of a person, without

compromising the aspect of sustainability.

SELF, through its experience in bottom of

the pyramid markets, has developed a

model called Solar Integrated

Development model. In essence it is a

maturity model for Total Village

Empowerment.

Using this model SELF plans to empower a

village in a step by step manner. By using

solar power pumps and filters access towater is improved. This access to water

improves the crop yield, providing a good

supply of food. Availability of adequate food

creates healthy children and increasingly

healthy population. Health is also improved

by using solar energy to store vaccines at

appropriate temperatures and enabling

doctors to treat the patients at night.

Education is improved due to classrooms

powered by solar lamps. Children can study

at night and internet accessibility is possible

due to a solar powered satellite in the

village. All these activities provide ample

opportunity for the members in the

community to start their own businesses to

support these activities. Thereby bringing in

an economy that is sustainable and that

uplifts the villages standard of living.

Government should implement innovative

models such as the SID model. Helping in

small clusters will be beneficial to a family

but will not bring about a sizeable change in

the complete village or rural population. To

draw the complete power of the solar

energy, government should look at rural

development holistically and should device

policies keeping that in mind. Following the

SID model and providing the necessary

equipment at each stage will bring about a

complete economical empowerment in a

village.

Among the many innovative models to

make solar energy attractive among the

poor, one model that stands out is the

Distributed Energy model. The Sun Shinesfor All (TSSFA) project makes use of this

model. What this project aimed to achieve

was to not subsidize the cost of solar


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products, but by leasing the products to the

poor, increase their income to the level

where they can afford the market price of

the solar products. TSSFA gave the poor

solar equipment, which they termed as a

solar energy package, which would give

them light and 12V power outlets. For the

access to electricity, the poor paid the

foundation a small fee every month. This

business model was developed in such a

way that the company would break even

after four years, eliminate the cost of

purchase, & make them affordable. The

foundation has run this project in rural partsof Brazil and a similar project could be used

in India to improve the lives of millions.

Burgeoning micro-finance industry has a

very deep network in the rural areas of the

country. This network can be used to collect

the rental payments, thereby reducing the

costs even further.

Rural electrification supported by renewableresources allows individuals to benefit from

electricity without polluting their

environment. Indoor air quality may be

improved as solar stoves replace traditional

indoor fireplaces. Women and children can

dedicate less time to foraging for fuel wood

while evening lighting permits weaving or

studying at night. Rural health centers can

refrigerate vaccines and PV powered water

pumps can permit families to draw water

from deeper wells. In short, PV

technologies offer a broad range of

solutions to the challenges of sustainable

development.

Biomass/Biogas

India, being an agricultural country, has alarge biomass resource. If harnessed

correctly, this vast resource can be used to

generate energy for the rural households.

Due to lack of awareness among local

farmers, the biomass resources are not

effectively used.

Biomass energy is created using crop

residues and animal wastes (mainly cowdung in India). Biomass energy products

include biogas, electricity from biomass

power generation, and various biofuels.

These systems can be affordably

established at both household and livestock

farm scales, use readily available

agricultural wastes, have few recurrent

costs, need no highly specialized skills, and


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have high potential for extra revenues

through the Clean Development Mechanism

because of the potential for greenhouse gas

reduction. Some of the benefits of biomass

to the rural energy sector are,

Biomass is renewable and therefore can

be sustainable resource

Transportation of biomass is not

economically viable and therefore makes

it a local resource, which the villages canuse to benefit from (without the

possibility of big corporations taking over

and diverting it to other places)

India is rich with biomass resources and

therefore offers a plenty supply of the

source fuel

Biomass is a clean energy and is safe

for the environment

Waste reduction is a windfall of the

biomass energy generation

Though, Biomass is readily available in

rural communities and is used even today.

But to use them without causing harm to the

households has been the main challenge.

Biofuels, which are different forms of energyderived from biomass, help the generation

of energy in a better way. Biofuels are

mainly of three types, namely solid biofuels

(wood pellets, wood chips, etc.), liquid

biofuels (biodiesel, bioethanol, etc.), &

gaseous biofuels (biogas, and syngas).

Research to improve the lives of the rural

households making use of this sustainable

resource has been active for a while.

Technological innovations to improve the

usage of biomass have brought about

better cooking systems and family sized

biogas gasifies providing 3-4 cubic meter

gas per day. The government has tried to

increase its penetration and is still working

on increasing the usage of biogas based

systems in the villages.

Innovations in extracting more out of

biomass have led to the development of

biomass technologies for thermal and

electricity generation applications. Gasifier

technology has penetrated the applications

such as village electrification, captive power

generation, & process heat generation in

industries producing biomass waste.

Innovative modifications of existing

generator sets, such as a mobile 7 KW

dual-fuel power set have been designed by

TERI. Dual-fuel plants with larger

generating capacities have also been

developed where there was need.


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Figure 11 Schematic of a 40-kilowatt dual-fuel gasifier system at TERI's Gurgaon facility (Source:TERI)


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TERI has periodically innovated the

biomass systems for small scale power

generation, leading to the development of

systems in the range of 3.5KWe to

100KWe. One of the TERIs innovations

has been in the work of its gasifier systems.

As quoted by TERI, TERIs gasifier system

comprises a downdraft throat-less gasifier,

has multi-fuel capability and end-use

flexibility. Fuel wood or briquettes produced

from agricultural residues can be used in

this gasifier. The throat less design makes

for smooth fuel movement, with the gasifier

allowing comparatively larger pieces ofwood or fuel briquettes. Water seal

arrangement with continuous grate-shaking

mechanism simplifies ash and char removal

without shutting down the system, thus

enabling long uninterrupted operation. Entry

of preheated air at two levels helps obtain

good quality gas, with low impurities in raw

gas. This also reduces the load on the gas-

cleaning system. Induction of a cooling

tower minimizes water requirement for gas

cleaning and also reduces the quantities of

tar-laden water to be disposed of.

TERI has also innovative designs of

modified engines that use only producer

gas. Water pumps that are used for

irrigation can immensely benefit from these

low cost innovations. TERI has successfullyinstalled these gasifier systems in Orissa

and Uttaranchal. It plans to install more

such innovations in the future. There have

been other biomass innovations but they

are not yet cost-effective for rural usage. To

benefit the poor, the biomass innovations

should be cost-effective, efficient, and

sustainable.

In a country such as India, where a large

percentage of the population is below the

poverty line, continuous cost-innovation is

required. There are a number of universities

and innovators who have been working to

come up with cheap solutions for biomass,

with the hope that these cheap solutions

can be either home-made or attract a large

rural population. One such innovation has

been the Experimental biogas unit design.

This design aims to achieve low cost, home

production, easy capacity addition, and use

of kitchen waste along with biomass (i.e.

multiple resource usage). This design is still

in the experimental stage (as reported by

http://www.indg.gov.in/).

Figure 3 Experimental biogas unit design (Source:http://www.indg.gov.in/)


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Another low-cost solution that has been

developed is that of a Biomass gas stove

developed by Dr. A. Sampathrajan. This

simple stove is a cylindrical drum made of

clay, sand & paddy husk. It is 290 mm in

diameter & 630 mm in height. Biomass is

held by an iron gate, which is fixed at 50m

from the bottom. It also has outlets for ash

removal and secondary air supply. This

biomass gas stove works on updraft

gasification and can make use of materials

such as woodchips, agricultural residue, dry

leaves, barks, etc. Biomass is dumped over

ignited charcoal to operate the stove.According to Dr. Sampathrajan, this stove

increases the thermal efficiency by 23-25%

and saves 10% in fuel and 40% in time

compared to the conventional wood stove.

There have been other innovations that

have been promoted by big corporations.

One such innovation has been the Oorja

smokeless biomass stove, which is

promoted by BP Energy India. Over 5000

rural households in Madurai and

Virudhnagar have benefitted from this

smokeless stove. This stove was

manufactured with inputs from Indian

Institute of Sciences, Bangalore and

promoted by BP. It was manufactured with

a small cost of `675, making it affordable to

the poor. An analysis by the Hindu news

paper showed that the cost of cooking alsoreduced by almost 50% due to the usage of

the Oorja stove.


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For a sustainable GDP growth, it is

important to have access to affordable

energy sources in the remotest areas. Rural

Energy Penetration helps in:

Development an ecosystem including

NGOs, private and public sector in

expanding reliable and affordable energy

access to the poor

Empowerment of local rural communities

and it leads to sustainable benefits.

Scaling up of clean, safe, affordable and

accessible energy sources and services

Connecting rural areas with rest of the

world. Improved education opportunities

hence Socio-economical growth.

Preparing the rural community for natural

disasters due to improved connectivity

and communication

Promoting new approaches and

methodologies for affordable modern

energy sources.

To summarize universal access to energy

at the household level depends on various

factors such as prioritizing energy access

and long term policy commitment by

national government, creating of strong

institutional, regulatory and legal

frameworks and financing from all available

sources. It is important that government

facilitate support from national and

international development organizations on

research, design and development ofappropriate technologies. In rural areas

reliance on renewable energy and use of

locally produced bio-energy to generate is

important. Collecting, compiling and sharing

knowledge is also equally important.

Conclusion


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Kalpana Jain

Senior Director

[email protected]

Neeraj Gupta

Senior [email protected]

Vikas Reddy

Assistant Manager

[email protected]

Contributors


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International Monetary Fund

International Renewable Energy Agency

Rural Energy Development Report by

World Bank

http://www.biomassgassifier.com/

Global-rural Urban Mapping Project

http://data.worldbank.org/indicator/

World Banks report on Rural Energy for

Development for 2 Billion people

No Substitution of Traditional Fuels , Dr.

W.S. Hulscher, FAO-RWEDP, Bangkok

World Watch Institute

http://www.cleantechreading.com/renew

able-energy/micro-hydro-power

Technologies for Conservation and

Development

(http://www.t4cd.org/Resources/ICT_Res

ources/Projects/Pages/ICTProject_278.a

spx)

BERI

(http://bioenergyindia.kar.nic.in/gasificati

on.htm)

Rural Biomass Energy 2020, a report by

Asian Development Bank about Rural

Energy in Peoples Republic of China

Ministry of Statistics and Programme

Implementation

(http://mospi.nic.in/Mospi_New/site/hom

e.aspx)

http://mospi.gov.in/national_data_bank/n

db-rpts-61.htm

http://mospi.gov.in/national_data_bank/pdf/NSS%2061st%20Round-511.pdf

http://www.bobfreling.com/2010/11/solar-

integrated-development-s.htm

http://www.self.org/india1.shtml

http://www.selco-

india.com/case_studies.html

http://www.arun.gov.uk/cgi-

bin/buildpage.pl?mysql=2073

http://www.unido.org/fileadmin/media/do

cuments/pdf/Energy_Environment/Small

HydroPower.pdf

http://sgp.undp.org/download/SGP_India

1.pdf

http://www.unidorc.org/

http://www.ruralenergy.nl/index.php?opti

on=com_content&view=article&id=16&It

emid=9

http://www.ashdenawards.org/winners/z

ara

http://www.ideaas.org/

http://www.indg.in/

Sources


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http://www.teriin.org/

http://www.biomassinnovation.ca/

http://www.economist.com/blogs/dailych

art/2010/11/energy_demand

http://www.hindu.com/2007/06/05/stories

/2007060505830500.htm

http://www.censusindia.gov.in/Census_D

ata_2001/India_at_glance/rural.aspx

http://www.eia.doe.gov/

http://www.mnre.gov.in/

http://www.gspcgroup.com/gspc/industry

overview.html

http://www.adb.org


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Thank you Logo Supporters

Moneywise.Be wise.


38/40

About ASSOCHAM

The Associated Chambers of Commerce and

Industry of India (ASSOCHAM), Indias premier

apex chamber covers a membership of over 2

lakh companies and professionals across the

country. It was established in 1920 by promoter

chambers, representing all regions of India.

As an apex industry body, ASSOCHAM

represents the interests of industry and trade,

interfaces with Government on policy issuesand interacts with counterpart international

organizations to promote bilateral economic

issues. ASSOCHAM is represented on all

national and local bodies and is, thus, able to

pro-actively convey industry viewpoints, as

also communicate and debate issues relating

to public-private partnerships for economic

development.

ASSOCHAM members represent the following

sectors: Trade (National and International)

Industry (Domestic and International)

Professionals (e.g. CAs, lawyers, consultants)

Trade and Industry Associations and other

Chambers of Commerce


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40/40

The Associated Chambers of Commerce and Industry of India

ASSOCHAM Corporate Ofce,

1, Community Centre Zamrudpur,

Kailash Colony,

New Delhi 110 048

Phone: 46550555 (Hunting Line)

Fax: 46536481/46536482 46536497/46536498

Email: [email protected]

Website: www.assocham.org

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and i ts network of member

rms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal

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This material and the information contained herein prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) is intended to provide

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Universal Access to Energy