Project Closure Report



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3.Introduction


This report is prepared to capture progress of UNDP MNRE project on “Access to Clean Energy”. The project was implemented by the Ministry of New and Renewable Energy (MNRE), Government of India. The geographical area of project covered primarily United Nations Development Assistance Framework (UNDAF) states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh. The project, in partnership with the Ministry of New and Renewable Energy, Government of India, aims to enhance access to clean and renewable energy for livelihoods in remote un-electrified villages in the selected seven United Nations Development Assistance Framework states of India.
The report presents the summary of various project deliverables, including management structure, Annual Work Plans, current status of select pilots supported under ACE and, in the end, provides recommendation for new programs and to increase the impact of UNDP-MNRE programme.
    1. Background


As per the Working Group report of 11th Five Year plan released in 2007 prior to the official commencement of ACE program, approximately 135,000 villages throughout India did not have access to grid electricity2. Further, it was estimated that close to 18,000 villages would not have access to grid electricity anytime in the near future. The requirement of energy is to serve two basic needs. First, energy is needed for lighting or illuminating the interiors of a house to complete the daily routine activity. Second, greater amount of energy is also rcooking of meals, at least, twice a day. The common energy source to fulfill the lighting requirement is kerosene which has a well established distribution mechanism in place with Public Distribution System (PDS). In comparison, the energy required to cook meals is much greater and very few villagers use kerosene based cook stoves due to the cost involved. Thus, biomass remains a major source of meeting energy requirements of a rural household throughout India, particularly in rural areas where about 75 percent of households rely on it for cooking.
However, the continued dependence on biomass is putting an increased pressure on the country’s local environment and micro climate. At the same time, several initiatives of GOI such as the introduction of Liquefied Petroleum Gas (LPG), kerosene and biogas in rural households have also had limited success in rural areas because of high cost of supply, lack of steady supply and accessibility.
India experience shortages of around 10% between electricity demand and supply. There is increasing demand on petroleum fuels (natural gas and liquid products) by various sectors which directly contribute to economic activities of the country. To sustain the economic growth, reducing the energy demand supply gap becomes part of government’s top priorities and it focuses on those few sectors. Thus the rural areas continue to suffer from energy shortages which far exceed the average and uncertainty regarding the improvement in situation. Therefore in such circumstances, rural areas have little choices but to increase their reliance on natural resources to meet their energy needs. Adoption of renewable energy sources such as small hydro and wind turbines, biomass gasification based power and solar energy (lanterns, home lighting kits, mini grids) is becoming feasible to meet the growing basic energy needs of a majority of the rural population.
Renewable energy technologies besides being environment-friendly have been found to bring about a change and well-being in the lives of people in the rural areas who are identified to be those forming the bottom of pyramid. To increase the foot print of renewable energy technologies pilot projects demonstrating the technologies, business models that make use of renewable energy sources to generate electricity have been set up across the country. These pilots face various challenges of scale up and therefore require innovative approaches during the initial period and also the support of key stakeholders.

3.1Objectives


The ACE project aims to enhance access of rural households to clean and renewable energy in remote un-electrified villages of the seven United Nations Development Assistance Framework (UNDAF) states and explore possibilities of generating livelihoods.
The ACE project is supporting pilot programmes in select locations in seven UNDAF states with an objective of identifying success stories and replicate lessons learnt to upscale and develop a national strategy on accelerating clean energy access. The project also seeks to develop a Renewable Energy Service Company as a viable business model and train key implementing and monitoring officials/professionals.

3.2Project Brief


National priority as per 11th Plan: Building environmental concerns into the country’s development strategy.

UNDP CPAP Outcome: Progress towards meeting national commitment under multilateral environmental agreements.

CPAP Output:

        • National efforts supported to leverage environmental finance to address climate change, biodiversity, land degradation and chemical management issues.

  • Partnerships and capacities developed to meet the national commitments under the Multilateral Environmental Agreement

Specific project outputs:

  • Framework developed for inclusive planning and delivery of clean energy services.

  • Options explored for partnerships and leveraging financing

  • Inputs provided for the environmental and climate policy regimes

Implementing Partners: Ministry of New and Renewable Energy (MNRE)


The project will support national actions to mitigate greenhouse gases (GHGs) and address climate change while meeting the national development objectives. It will strengthen the information base and institutional capacities, leverage international and local financial resources and develop strategic partnerships for implementation of the National Climate Change Action Plan. Particular focus is on (a) access to clean energy, (b) knowledge management.


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