1. Renewable Energy Promotion and Training through
SMEs in Rural India-Potentials and Challenges
R. Arun Prasath,
Assistant Professor
Laboratory for Energy, Materials and Sustainability
Centre for Green Energy Technology
Pondicherry University
Puducherry – 605014
Email:raprasath.get@pondiuni.edu.in
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R. Arun Prasath – SEPT20YEAR 2012, Nov 24th, Leipzig

2. INDIA
Yanam
Mahe
PONDICHERRY
Karaikal
http://www.pondiuni.edu.in/ R. Arun Prasath – SEPT20YEAR 2012, Nov
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3. Outline
 India’s Energy Scenario
-Reserve, Production, Consumption, Power Distribution,
 India’s Renewable Energy
-Current production, Potential, Challenges, Schemes..
 SMEs and their role to promote RE in rural India
- introduction, Sectors-models, Potential, Challenges, ..
Conclusion with some pictures of Pondicherry
R. Arun Prasath – SEPT20YEAR 2012, Nov 24th, Leipzig 3

4. Fossil Fuel Reserve
and Production
India’s energy is largely met by coal
 Ranks 4th in coal reserve with 7% of world reserve ~ 64,786 million tons
 3rd largest producer and consumer of coal
 Coal could lost ~100 years, ----imported stood at 36% for 2010-11
India’s oil and natural gas
 0.7% and 0.8% to the world reserve
 1201 million metric tons of oil and 1437 billion cubic meters of gas
 Import 75% of all crude oil and expected to increase to 90% by 2030
 Import about 28% natural gas for the year 2010 , expected to increase..
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5. Indian Energy – FACTS
distribution 2012
 Total Power production capacity of over Indian Energy distribution
209 GW (as on 30-10-2012)
 Renewable Energy contribution as of now is
about 27 GW ~12% (below the average of
world RES 19%, REN21 source)
 Per capita electricity consumption is very low
~ 779 kWh per year (~10 times less than
DC, India Vision 2020 targets 2460 kWh).
 Economy projected to grow at average of Power Generation in India
5-7% per annum!
 400 million live without electricity in over
90,000 villages
 Currently, average power cut in most of the
states, around 10-18hr/day!
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6. Renewable energy
in India
Indian Renewable Energy Grid-connected as on 2012
Total Renewable Energy (RE) installed
capacity of 26.9 GW (as on Sept 2012)
Grid connected 26.1GW, and off-grid
connected 7734MW
Annual growth rate at 18% in the 11th plan
(2007-2012) compared to just 5% Non-RE.
Separate Ministry, Ministry of New and
Renewable Energy (MNRE) Off-grid-connected as on 2012
MNRE estimates potential as 87 GW
excluding solar energy, South Asia Energy
Unit report estimated as 150 GW, IE
estimates above ~1000 GW!
 India aims for 50% renewable by 2050!
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7. India’s Solar Energy
Potential
Thermal PV
 250-300 clear sunny days/year
 4-7 kWh/ m2 /day
 India ranks 7th in PV cell production!
(export to Germany, Italy, NL, Spain, Aus,
USA,)
 ~ 1 GW SOLAR eneryg produced via grid-
connected and off-grid achieved (Sept 2012,
MNRE)
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8. India’s Solar Energy
Potential
Thermal PV
The Indian Energy Portal
estimates that if 10% of land used
for solar energy harvesting (from
12.5% available land), the installed
solar capacity would be at 8000
GW!
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9. Potential to be
a PV leader!
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Source EPIA R. Arun Prasath – SEPT20YEAR 2012, Nov 24th, Leipzig

10. Indian Govt Initiatives:
JNNSM
Jawaharlal Nehru National Solar Mission
 Aimed towards establishing brand “Solar India”
• Install a total of 20GW grid connected power in 3 phases by 2022
– Phase 1: 1GW (grid connected / utility scale) power by 2013 (using both Solar
PV and Solar thermal), Solar Thermal Collector of 7 million sq m
– Phase 2: ~5-6GW by 2017, Solar Thermal Collector of 15 million sq m
– Phase 3: touch 20GW by 2022, Solar Thermal Collector of 20 million sq m
– Scale to 100GW by 2030 and to 200GW by 2050, and beyond!
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11. Installed Capacity in 2012
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12. Renewable energy
in India
Indian Govt Initiatives: Wind and other RE Power in India:
 Jawaharlal Nehru National Solar Mission
 India ranks fifth in wind power in the world, 15
GW as on Sept 2012, - 71% of India’s RE
 National Action Plan on Climate change
 The estimated potential of wind energy is around
 REC Mechanism by CERC – 2010 regulation 50 GW to 1000 GW ~ employ 75K by 2020
 Bio-energy potential 51 GW , aims ~ 10 GW by
2022 (agro waste and energy plantation crops)
 Biofuel ~ aims 20% blend of biodiesel/
bioethanol by 2017 and WtE potential ~ 5 GW
~ employ 561K by 2020 (all bio-energy )
 SHP potential ~ 15 GW ~ employ 30K by 2020
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13. RE promotion Challenges !
 Capital Cost- Lowering the cost of manufacture
 Fluctuating radiation and lack of authentic radiation
data
 Lack of trained man power- inexperienced and
insufficient manpower, lack of institutional training,
etc.
 Policy – Single tariff for entire country,
local/state policy does not link central policy
 Financial- Banks are skeptic, low return due to
high competition, no specific feasibility study before bid.
 Uniform supply across the states
 Lack of costumer awareness
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14. RE promotion Challenges !
Real Challenges !
 Logistic – Land availability issues (land accusation
bill!), marginal farmers, power evacuation, grid
network and stability, etc.
 Environment: up to 48 deg C in Rajasthan, Dust
storm- dry and semi desert areas, hard water and
salty water, etc
 Lack of collaborative goal driven R & D
 Lack of clarity on technologies as technologies still
evolving --Technology innovation is high
 Indian R & D is not getting anyway
 Lack of real commitment and misuse of subsidy
 Corruption & Lack of standards
 Off-peak seasons reduce cash flow
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15. Major achievements
of India
 About 12% (~26 GW) of grid connected power is
from renewable power.
 About 774 MW in the off-grid/decentralized
renewable systems
 Deployment of 44.16 lakh family biogas plants
 8846 remote village/hamlets provided with
renewable energy Systems
 6.7 lakhs of solar photovoltics home lighting
systems
 8.2 lakhs of solar lantern supplied
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16. Major achievements
of India
 Largest solar-stem cooking system for 50,000
persons/day (in a temple complex at Shirdi)
 The MNRE programmes established first biogas bottling
segment, (at Talwade village in Nashik, Maharashtra with
filling capacity of 16 cylinders per day with 9 kg of biogas)
 Largest size solar dishes at BG Chitale Dairy, Bhilawadi,
Dist Sangli, Maharashtra for milk pasteurization
 Demonstration of the use of biofuels, zero emission
vehicles under research, development and
demonstration programmes
 Various research organizations supports R&D in RE and
promotes green energy business
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17. SMEs role in RE promotion
SME s fact
• Micro, small, and medium enterprises — constitute to almost 90% of the
total industrial establishments in India
• accounts ~ 45% of the industrial production and 40% of the total exports in
the manufacturing sector.
• It employs an estimated around 60 million persons –Ministry of MSMEs to
train 500 million people by 2022
• Contributes nearly around 10% in total GDP
Dominated sectors in India
• Agricultural Inputs, Food Processing, Chemicals & Pharmaceuticals,
Engineering; Electricals; Electronics Electro-medical equipment, Textiles and
Garments Leather and leather goods, Meat products, Bio-engineering,
Sports goods, Plastics products, Auto Components, Gems & Jewellery Sea-
Food, Pumps ,Ceramic Tiles & Sanitary Ware, Computer Software, services
etc.
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18. SMEs role in RE promotion
Why SEMs in India should look for RE-particularly in rural areas?
Use of outdated technologies – BEE estimates of saving of 25-30 per cent of the total energy
SME contributes to nearly 70 per cent of industrial pollution
~ above 50% power usage compared to heavy industry
Frequent power cuts (10 hr to 18 hr/day!)
RE unprecedented growth in the last decade ---huge potential for – (a) equipments / products,
and (b) services.
Low-end products (such as inverters, auxiliary equipments) -expertise in low-end products
Promote rural economic growth, reduce the adverse environmental impacts, reduce carbon foot
print, promote sustainable development, and become a leader in renewable energy technologies
for rural areas
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19. SMEs -RE promotion potential
Govt. programs- Ministry of Power, Ministry of New and Renewable Energy (MNRE),
Ministry of Rural Development, Ministry of Micro, Small and Medium Enterprises
(MSMEs), etc. - promote rural electrification through SMEs.
 MNRE - a separate ministry to promotes renewable energy for rural applications
through schemes- remote village electrification, village energy security projects, solar
power and hydro project scheme, family type biogas plants, national biomass cook stoves
initiatives, decentralised renewable energy for villages, hybrid renewable technologies,
etc.
Non-Profit organizations/International bodies in association with government
agencies promote renewable energy through SMEs
Schemes with subsidy – with Small Industry Development Bank of India (SIDBI),
Credit Linked Capital Subsidy Scheme (CLSS), National Bank for Agriculture and Rural
Development , etc.
In National Solar Mission, it is asserted – “The SME sector forms the backbone for
manufacture of various components and systems for solar systems.
India’s high potential to harvest the renewable energy because of strategic geographic
location and world young population.
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Power cut (10-18 hr/day!)

20. SMEs -RE promotion potential
Currently about 50% of MSMEs are in closer stage due to power crisis!
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21. SMEs -RE promotion models
Successful models:
 Biomass gasification systems for thermal application- textile dyeing, food processing, etc
 Solar-grid hybrid models for sewing machines (REEEP supported project with SELCO + SEWA BANK)
 SME clusters model to promote EE and RE (Several units together to install solar power plant)
 Linking the technology with businesses that support livelihood in rural areas, e.g, TERI model
 Off-grid/micro grid systems are appropriate for rural energy supply (Village Level Entrepreneur)
Cluster Model: UNIDO's ongoing
projects + BEE has initiated EE
and RE in selected in 12 selected
energy-intensive MSME clusters
The sectors covered: Brass,
Ceramics, Dairy, Foundry and Hand
Tools
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22. SMEs -RE promotion challenges
 Lack of awareness
 Limited access to information, knowledge and technology
 Lack of network within SMEs
 Fragmentation of policies across several government agencies
 Limited access to finance technological and market uncertainty are
particularly high, raising risk premiums
 Lack of capacity of SMEs in adopting clean technologies
 Training facilities and innovation in RE field is very less and hence very
few SMEs are interested in it.
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23. SMEs -RE promotion challenges
 Under-pricing and detrimental subsidies on conventional energy favor
unsustainable patterns of consumption and greater emissions
 Remote communities are difficult to reach (increased costs for sales,
after- sales service; repair; question of spare parts availability).
 Supply-side barriers – barriers in the supply chain for the delivery of
EE/RE technology and services.
 Demand-side barriers – barriers restricting the level of demand for EE/RE
technology and services.
 Barriers to national uptake – barriers restricting the national uptake and
implementation of EE/RE technology and services.
 Policy barriers – barriers in the policy and knowledge within governmental
institutions for the implementation of EE/RE technology and services- No
REC for off-grid projects! There are caps
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24. Pondicherry
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25. Pondicherry
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26. Pondicherry
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27. Pondicherry
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28. Pondicherry
Thank you very much…
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29. Thank you for your kind attention!
Dr. R. Arun Prasath
Assistant Professor
Laboratory for Energy, Materials and Sustainability
Centre for Green Energy Technology
Pondicherry University, India
Office: +91 0413 2654963
Mobile: +91 9487769611
email: raprasath@gmail.com, raprasath.get@pondiuni.edu.in
Fax:+91 0413 2656758
Web: http://www.pondiuni.edu.in/profile/dr-r-arun-prasath-0
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