"Strategy for Economization & Resource Efficiency in Decentralized Energy Solutions for Communities" by Snehashis, Climate Change & Environmental Core Competency Cell (C2-E-C3), IIFM presented in ASSOCHAM International Conference - "Climate Change: Business Sustainability & Society", Nov 11, 2008

1. Strategy for Economization and Resource
Efficiency in Decentralized Energy Solutions for
Communities
Strategic analysis by Snehashis Sarkar
(snehashiss@gmail.com)
Presented by
Geetanjali Shahi
Indranil Roy
Manasi Pathak
Renuka Saroha
Climate Change & Environmental Core Competency Cell
Indian Institute of Forest Management, Bhopal 1

2. Annual Household Fuel wood
Consumption
200
180
160
In Million Tonnes
140
total
120
rural
100
urban
80
60
40
20
0
1996 2001 2006
2
Source: www.indiastats.com

3. Population Dependent on Forests
in Urban Areas
90
80
70
In Millions
60
50
40
30
20
10
0
1996 2001 2006
3
Source: www.indiastats.com

4. Agenda
•Introduction to case studies
•Stakeholder Analysis
•Risks
•Barriers
•Process of power generation from bio-gas
•Strategy for economization
•Value additions-CDM
•Recommendations
4

5. Cases Studied
• Cases from SRTT prepared by Prof. Suprava
Patnaik, IIFM
1. Light from forest – Kasai
2. Eco friendly Green Power: Deepak Spinning Mills
3. Green energy – DESI Power, Orrcha
• Case Study by Mr. Sreyamsa Bairiganjan,
Researcher, Environmentally Sustainable
Finance, IFMR
4. Bagepalli CDM bio-gas Programme
• Case Study by Dr. Udai Pareek
5. Transfer of bio-gas technology-Delhi
5

6. Stakeholder Analysis
• Primary Stakeholders
- Community
- Industry
• Secondary Stakeholders
- Government
- NGOs
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7. Social and Institutional Risks
Institutional Risks
Social Risks
• Non acceptance by the • Policy and law changes
• Political set up for
community.
• Societal negligence subsidies and funding
-Non payment of bills
-Non Cooperation
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8. Resource and Technical Risks
Resource Supply Technical Risks
Risks
• Damage to raw material • Failure of technology
• Failure of crop • Maintenance problems
of the plant
• Lack of emergency
preparedness/handling
8

9. Attitudinal Barriers
• Industrial standpoints
– Bio-gas energy is a primitive technology.
– Bio-gas energy is need specific/project specific
– Rural communities are not ready for such changes
– Communities lack technical knowledge
• Social standpoints
– Such schemes are for limited people
– Implementing bodies have vested interest
– Will interfere with their existing lifestyle
9

10. Technological Barriers
• Lack of
– cheap and developed technology
– Efficient multi-feed system
– Local expertise/manufacturers/agents
• Absence of
– Proper plantation management practices
– High yielding seeds, clones and varieties
– Continuous supply of raw material e.g. bio
mass, water etc
– Skilled technicians in rural as well as tribal
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pockets.

11. Financial Barriers
• Scarcity as well as high cost of capital for
starting such projects
• More funding for options like solar
energy, wind energy
• Long payback period
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12. Institutional Barriers
• Absence of institutional arrangements to
empower local communities to manage RBCs
(Rural Bioenergy Centers)&energy option
• Lack of co-ordiantion among concerned
government bodies
• High subsidy on electricity & petroleum
products
• Restrictions on sale of electricity by private
player at economic price
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13. Economization Strategy
Resource
Efficiency
Increase
Benefits
ECONOMIZATION
Cost
Benefit
Reduce Cost
Plough back the
Business additional cashflow
Strategy by Sustainability for more generation
Snehashis Sarkar and
and outreach
IIFM, Bhopal Upscalation 13

14. Generating bio-gas and Electricity
Biomass
(Lantana Gasification of Cooling by
biomass water sprays
Agro Residues
Cow Dung )
Filtration
Electricity
Decentralized
with sand
Fed to engine
Distribution generated
filters
14

15. Strategy in Action
Energy
Resource Process Output
Manure
• Diverse • Technological • Efficient use of
Portfolio of up-gradation resources
fuel resources
Concept by Snehashis Sarkar, IIFM Bhopal 15

16. Economization of Bio-gas project
• Shredded raw materials to facilitate easy movement
in boiler
• Usage of semi dried succulent material with moisture
content between 4-12%
• Development of multi feed systems to increase the
sustainability of project
• Usage of specially designed 100% producer gas engine
Dual fuel engine as standby
• Using Combined cycle gas turbines
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17. Clean Development Mechanism
• Upfront payment of CER revenue / Carbon
Finance
– Can lower the financial barriers
– Make a project viable and attractive
• Monetization of potential CERs can help
– Additional cash flows
– Repayment to the financiers
– Towards O&M costs
– Funding for Economic activities in communities
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18. Clean Development Mechanism
• CDM benefits can be availed through
– Methane avoidance in landfills/waste dumps
– Switch from conventional electrical energy with
higher life cycle emissions
• Energy generation capacity <15 MW
• Baseline & Monitoring Methodologies
– AMS Class I and III
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19. Recommendations
• Portfolio of diverse technology, fuel resource
and end use
• Extension of strategic services through various
entities, e.g. NGOs, CBOs
– planning, implementation and operationalization
• Decentralized Energy as a strategy to Low
Carbon Economy and Energy Security
• Change attitude towards waste
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20. Recommendations
• Diversion of waste from landfill towards
energy recovery
• Increase landfill tariffs
• Energy and Waste management needs to be
integrated in government policy
• Dedicated institutional arrangements
• Capacity needs to be developed quickly
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21. geetanjalishahi7@gmail.com
pathak.manasi@gmail.com
renuka.saroha@gmail.com
roy.indranil7@gmail.com
snehashiss@gmail.com
Climate Change & Environmental Core Competency Cell
Indian Institute of Forest Management, Bhopal
cceccc.iifm@gmail.com
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