Policy Research Workshop On How To Enhance Climate

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Swiss Agency for Developmentand Cooperation SDCPolicy Research WorkshopOn How to enhance climate actions to meet a longterm goalInternational and regional cooperationTERI SDC Biomass partnership (TSBP) program

TSBPAccelerated diffusion of biomass basedEnergy Systems for Clean Energy ServicesTwo-Stage BiomassPower Gasifier forElectricity GenerationTechnology transfer toNTPCDe-mystifyBiomass supplyVillage electrification throughNTPC DDG program (4 villages)Biomass methodology (pilotstudies in Belgaum,Karnataka) & urban biomasssupply studiesVillage electrification(4 villages) directlyFramework for biomasssupply chainThermal Gasifierfor MSMEsAutomation ofburner andgasifier controlMarket development:Diffusion in 40 MSMEsSouth-South Knowledge Transfer2

Context of India’s MSME Sector .1 India’s Industrial sector - mix of large energyintensive industries and Micro, Small and MediumEnterprises (MSMEs) units MSME sector includes approximately 36.2 millionenterprises spread over 180 clusters Economic importance: Around 8% of GDP 45% of manufacturing output; 40% of exports Employs approx 80.5 million people; second largestafter agriculture Energy context: Approx 50% of total commercial energy use Energy costs accounts for 30 – 50% of overallproduction cost Widespread use of locally available cheaper fuels Rural MSMEs - fuel wood/biomass energyUrban MSMEs – coal, coke and other fossil fuels

Context of India’s MSME Sector .2 Inherent challenges Overall sluggishness in the economyRising input energy costHigh levels of pollutionHigh transaction cost and perceived risk ofnew technology adoption Lack of capital investment and informationfailure Opportunity for Clean Technology Energy efficiency and fuel switchingthrough renewable energy technology canplay vital role for Reaching to high untapped potential ofwide range of MSMEsImproving productivity andcompetitivenessSolutions for complying with stringentenvironmental regulations

Biomass Energy in India Biomass energy animportant renewable energyresource for India 150 million tonnes perannum of surplus biomass isgenerated from differentsources Gasification technology aviable alternative for efficientutilisation of surplus biomass Biomass energy is fastemerging as a potential formeeting India’s energysecurity and for its lowcarbon development path

SDC-TERI Partnership for promotingBiomass Gasifiers2001-2004 :TechnologyReplications1997- 2000:Technologydevelopment &demonstration1994 -1996:Biomassenergyjourneybegins Silk Reeling inKarnataka Textile Dyeing,Rubber, Puffed Rice Lead recovery,Namkeen & Khoya,Bakeries, Mid-daymeal cooking,Candle making In 2002 foray intodecentralisedpower generationfor ruralelectrification2005-2011 :Mainstreaming inMSMEs Replications andawareness throughLocal ServiceProviders New sectors – PowderCoating, Foundry(Sand drying), Nonferrous melting furnace(aluminum, lead),Chemical industries Testing of small powergasifier in 7 villages Development ofadvanced 2-stagegasifiers2013-2015 :Accelerateddiffusion inMSMES Scaling-up diffusionand expandingnetwork of localdelivery mechanism innew industrial cluster Technologyautomation of thermalgasifiers Implementation of 2stage gasifier in fourvillages

Spin-offs and Replications 650 thermal gasifiers installedin different MSME sector acrosscountry Replications have establishedbiomass gasifiers as a costeffective energy deliverysystem Generated positive spin-offeffects within and acrossclusters Local manufacturing andservices creating clean energyentrepreneurs and employmentCase Storyof Belgaum

Case Story of Belgaum Reliable biomass supply chain 750,000 tons of surplus biomassresidues 650,000 tons of woody biomassauctioned from Forest depots Biomass flows from private plantationsin Maharashtra Diversified and expanding industrialcluster 150 foundries; 97% are small andmedium scale; allied industries such assand drying for foundry sector Presence of Sugar, textile, minerals &metals, chemical and foodprocessing/cooking MSME units

Cluster Development Approach forDissemination Cluster mapping and identification Creation of Local Delivery System throughan Entrepreneur Identification and training of Local Manufacturer(LM) /Local Service Provider (LSP) Mapping potential MSME units Demonstration/Awareness workshops Local Manufacturer in Belgaum has installed20 biomass gasifier systems Aluminum smelting, food processing and sanddrying (foundries) Expanding to glass re-melting units, corebaking and sand drying (foundries), foodprocessing (milk/jaggery)

Lessons from Dissemination .1Huge Untapped Potential Biomass gasifier systems can meet thermalenergy capacity needs 25 kWth - 3 MWth Temperature requirements of 60oC – 1000oC Potential in MSME units such as: Silk reeling, Textile dyeing, Hot water/steamgenerators Food Processing Non-Ferrous metal (Aluminum and Leadrecycling), Powder Coating, Chemicals,Foundries (allied operations), Glass melting Charcoal making, Brick making Ceramics

Lessons from Dissemination .2Economically Attractive Pay back period: 6 months (fossil fuel) to 2years (biomass) Reduction in cost per unit of useful energythrough gasification: 60-80% reduction (fossilfuels); 50% reduction (biomass fuels) Improved productivity and quality of endproducts due to better process/heat controlCleaner Production Enforcement of environmental and pollutionnorms in MSME sector acting as driver forshift towards clean technologies/processes

Lessons from Dissemination .3Continuing Challenges Needs customised/tailor-made systemdesign for each end-use application;impedes scaling-up Supportive services – localmanufacturing and supply, maintenance,finance, skilled human resources –remain weak Sustainable biomass fuel supplylinkages and local delivery mechanismsrequires strengthening Information failure and slow pace oftechnology up gradation (systemautomation) resulting in limited scale-up

Thrust to Address ChallengesSDC-TERI Biomass Energy Project (2012-15) Developing strategies and formulatingenabling framework conditions to scale-updissemination, awareness creation,identification of new potential applications andclusters and strengthening local deliverysystems Technology up gradation throughinstrumentation and control systems – shifttowards user friendly automated systems Comprehensive biomass supply chainanalysis in existing and new clusters Market development by strengtheningLM/LSPs and awareness-cum-demonstrationworkshops

Way Forward for Scaling-up A holistic energy policy (regulations and economicinstruments) specifically for MSME sector Need to mobilise: Industry associations to shift towards cleantechnologies State governments for channeling renewable energyprogrammes/incentives to focus on MSME sector District Industrial Centres forawareness/demonstration Financial institutions for innovative financing productsfor MSME clusters (equipment financing, priority lendingstatus to link finance/cover risks) Technical institutions for skills development andtraining A Cluster Service approach as model for accelerateddiffusion Local manufacturer/Local Service Provider technology provider local supplier biomass fuelsupplier maintenance services/awareness creation

N-S and S-S technology transfer15

Knowledge transferframeworkCreating abaselineDetailed MappingEstablishingnetworksEngaging with academic institutionsMSE’s energy consumptionEngaging with financial institutionsTo assess market potentialIdentification of local ManufacturersTraining and capacity buildingCustomisation of technologyTechnologytransferEngagement private sector& local governmentsMarket developmentCreating conducive policyCapacity building trainingHandholdingsupportKnowledgetransfer &Spin offformation

Thank You for Your Kind AttentionFor further information, please contact:nkram@teri.res.in shirish.sinha@eda.admin.chdhingras@teri.res.in

Biomass Energy in India Biomass energy an important renewable energy resource for India 150 million tonnes per annum of surplus biomass is generated from different sources Gasification technology a viable alternative for efficient utilisation of surplus biomass Biomass energy is fast emerging as a potential for

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