Solution Forum 5- Energy conservation in south indian tea industry undp

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Solution Forum 5- Energy conservation in south indian tea industry undp

  1. 1. ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP Focal area: climate change GEF grant: US$ 0.975 Co-financing: US$ 1.1million Concept approval date: October 2005 CEO endorsement date: 25 July 2007
  2. 2. PROJECT STAKEHOLDERS Tea Board TIDE UPASI ELPRO – energy auditors Tea factories in south India Equipment suppliers Commercial lending institutions
  3. 3. Overview of the tea sector  Global tea production (2010) 4162 million kg  Global tea exports – 42%  India’s tea production (2010) 966 million kg  Current turnover of the industry INR 195,000 million
  4. 4. India and the major tea producers
  5. 5. The south Indian tea sector   Production 241 million kgs ( export about 30%) Price realization US4 178 million
  6. 6. Specific energy cost and consumption
  7. 7. Project Objective  To reduce energy consumption from tea processing units in South India, thereby restricting Greenhouse Gases emissions  To remove barriers to energy conservation and energy efficiency that inhibit the realization of large energy saving potential in the tea sector
  8. 8. The project outcomes  Awareness creation among the target sector about energy efficiency/ renewable energy technologies and their relation to profitability  Elimination of financial barriers that inhibit investment in energy conservation equipment  Adoption and procurement of energy efficiency/ renewable energy equipment/ practice  Learning, knowledge sharing and replication
  9. 9. Barriers and risks in energy use reform
  10. 10. Project design, issues, barriers, interventions
  11. 11. PROJECT MANAGEMENT ARRANGEMENTS Qq PSC Chairman Tea Board qq UPASI – Planter’s Association Technical Team for Implementation NPD, Executive Director, Tea Board Coonoor National Project Manager, TIDE Accounts and audit Technical Advisory Committee Documentation
  12. 12. Key components of project implementation
  13. 13. KNOWLEDGE PRODUCTS  Well defined project baseline from data collected from all tea factories in south India.  Energy audit reports from 100 factories (about 40% of the factories covered)  100 TIDE technical reports -Equipment and factory specific post audit energy consumption reports to establish energy savings as recommended.  Energy score card as a self assessment tool
  14. 14. KNOWLEDGE PRODUCTS      A set of 10 films as video tutorials on each of the energy audit recommendation. 14 newsletters with articles, information and updates About 15 power point presentations on energy conservation Directory of energy efficient equipment suppliers Article published in MSME journal
  15. 15. Detailed energy audits
  16. 16. Representative structure of energy score card Category Credits A. General 33 B. Day to day operations 48 Withering 7 CTC 14 Fermentation 3 Dryer 13 Sifting / packing 4 Reconditioning 3 Illumination 4 C. Housekeeping 19 Total 100
  17. 17. Post audit performance studies
  18. 18. Investments made in energy conservation Category No of factories Investments in electrical Investments (thermal) Total (million Rs) CTC 65 12.88 26.04. 38.91 Orthodox 13 3.28 28.11 31.39 Green 2 0.18 0.79 0.97 Recently started 9 0.49 0.50 0.99 HML group 12 5.00 50 55.0 BBTC group 9 2.00 6.0 8.0 Total 110 28.83 11.441 135.26
  19. 19. Equipment wise investments in 100 factories
  20. 20. Impact Analysis (CO2 mitigation) CO2 Mitigation in 4 years tons Type Audited Factories Electrical Thermal CTC 63 13 510 1 98 242 Orthodox 23 2 085 50 115 Total 86 15 595 2 48 357 Grand Total 2 63 952
  21. 21. CHALLENGES  To get the buy in from the tea factories  The need to combine committed project deliverables with constantly evolving need and dynamic risk perception.  Difficult to attract quality human resource as project was implemented from a small town (Coonoor).  Technical documentation was often challenging as most technically competent people did not have matching writing or communication skills.
  22. 22. LEARNING      Technology a barrier and not access to finance as was understood at the time of project conceptualization. Understood that energy use reform can be initiated through awareness and technical support without any financial incentives The tea sector is extremely demanding and would reject any recommendation that is not backed by adequate data and information.. All risk is dynamic and constantly changing. Decisions on energy use reform are complex and they are not driven by techno economics, equipment specifications or CO2 reduction potential alone. The project has developed some insights into how to gauge the need and the risk perception and constantly modify its intervention strategies.
  23. 23. Scaling up and possibilities?  Where do you think we go from here?
  24. 24. For more information on this project contact:  Mr R Ambalavanan, Executive Director, Tea Board and National Project Director, Shelwood, Coonoor Club Road, Coonoor 643101, Nilgiris, Tamil Nadu. Tel: 0423-2231638/ 2230316; teaboardcoonoor@rediffmail.com; ambal007@gmail.com  Ms Svati Bhogle, National Project Manager, TIDE. Tel 0802331556 svati.bhogle@tide-india.org,  Mr Srinivasan Iyer, Team Leader, Energy and Environment Unit, UNDP, 55, Lodhi Estate, New Delhi. Tel: 01146532333; srinivasan.iyer@undp.org

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