Project Closure Report
Technology Informatics Design Endeavours
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- Saran Renewable Energy Private Limited
- 4.3Workshop in Patna
Technology Informatics Design EndeavoursProject Brief Project aims at up-scaling fuel efficient stoves (PYRO multipurpose stove) for commercial kitchens in Kishangarh and semi rural regions around Ajmer, Rajasthan. The target is to install 200 stoves in two years to meet cooking needs of road-side eateries/restaurants, hotels, sweet-shops and school messes. The cost of stove is about Rs 12,000 and will have a payback period of 8 to 10 months due to savings in fuel consumption. Business Model Supply Chain Mechanism – The renewable energy resources available in the project area that is compatible with the stove design to use all kinds of woody biomass including firewood, lantana, dung cake, agriculture residue like mustard stalks and corn cobs. Operation and Maintenance Pyro Stoves are already manufactured and marketed by Sustaintech India Private Limited (SIPL). Technology Informatics Design Endeavours (TIDE) will work in close association with SIPL and other local partners. A consumer finance partnership has been discussed with BASIX and developing marketing partnership with other interested organizations. TIDE has negotiated with Frontier Markets, a rural distribution company, for collaboration in distribution and marketing of cook stoves. Revenue Model The average selling price of institutional cook-stove will be Rs 12,000 per stove. Current estimates for project’s viability is a monthly sale of 20 stoves with an average center cost of Rs 75,000 per month which includes expense towards rent, manpower cost for four people. Stoves sold through other linkages would contribute to profit of the centre. Sustainability Conventional stoves cost Rs 2,000 but these are highly inefficient in using fuel with a combustion rate of 8 to 10 kg/hr. Also, the cook and often customers are exposed to heat and smoke from these stoves. PYRO multi-purpose stove saves 40% of firewood in addition to being smokeless and has a life of seven years. Although the cook stove costs Rs 12,000, based on TIDE’s experience, it helps to save Rs 150 per day with a payback period of less than 4 months. The pay back analysis does not include the savings that arise from electricity as fan is not required in this cook stove. Scalability Potential Replicablility of the project for small-scale commercial kitchen seems to have a good potential for replication with the advantage of PYRO stove compared to conventional stoves and low operating costs. DPR estimates the total market size of multi-purpose stoves in Kishengarh block to be 400 to 500 units. Thus, once successfully established then replication potential of improved cook stoves is very high.
Project Brief Saran Renewable Energy (SRE) has proposed to generate and supply electricity by setting decentralized power plants using biomass gasifier technology. It will also grow biomass which will serve as feedstock for the power plant. SRE proposes to set up a 32 kW power plant at Galimapur, 24kw power plant in Qutabpur and two units of 32kW in Ramnagar in Ballia district in U.P. The project aims to reach 3,500 households in 12 villages of Bihar and U.P. states. SRE will educate the farmers on how to grow the crop (feedstock) for the gasifier and guarantee purchase of the biomass grown. Business Model Supply Chain Mechanism: SRE has begun the plantation on wastelands growing a local shrub in water logged area and having plantations within 5km of power plant location. The main biomass planned to be used for the power plant is available 6 to 9 months, corn cobs about 5%, bamboo 5% and tree branches 2 – 5%. For a 32kW plant, 110tons is indicated as the annual requirement of biomass. With an estimated yield of 10 to 15 ton/acre/year and availability of at least 15 acres of plantations for each power plant as indicated in their DPR, the need for biomass is easily met. Operation and Maintenance The power plant is expected to supply power for six hours each day and 325 days per year.. Revenue Model The power plant can provide electricity for lighting in households and shops at Rs 75/month for 6 hours daily supply as against a monthly expenditure of Rs 120-to-150 on kerosene. For irrigation pump-sets of 3hp rating, the cost of power would be Rs 60/hour as against Rs 120 to Rs 150 spent by villagers on diesel based pump-set. . Sustainability Business model proposed by SRE is viable based on the estimations as the cost of energy service is lesser than the current expenditure incurred by the community in the project area. Scalability Potential The project can be scaled up by settings plants in the areas where there is electricity scarcity and wasteland exists which can be used for growing biomass. 4.3Workshop in PatnaDiscussion Points In March 2010 a one-day workshop was held in Patna. UNDP is supporting a project titled ‘Access to Clean Energy’ with MNRE as IP – Implementing Agency and Winrock International India (WII) as RP-Responsible Party. The project aims to support innovative initiatives of models that can convert BAU grant based project to business models by filling some gaps. These projects leverage the experience of earlier pilots across the country/abroad and provide inputs to large scale replications/up-scaling and eventually provide inputs to MNRE to formulate “Rural Energy Policy”. The initiatives are focused in UNDAF states, however has provisions to knowledge gathering from other states. In this regard the project aims at (i) identifying and supporting projects that promise business models; (ii) document status of RE in UNDAF states; (iii) document successful case studies; and (iv) develop roadmap for rural energy policy. The response for call for Expression of Interest for potential business projects came mostly from national level NGOs. About 45 proposals were received and 25 of them were shortlisted. The shortlisted concepts would be supported to develop DPR/PDD – Detailed Project Report/Project Design Document. To generate interest from grass roots NGOs and entrepreneurs, a one day seminar was organised at Patna. A simple advertisement in local language was given out. Over 140 people representing about 70 NGOs participated in the seminar. Mr Sukumaran described the project from MNRE perspectives. Dr S.N. Srinivasan highlighted key questions of inadequacy in dealing with Renewable Energy (RE) and its productive uses and RE based business models. He explained two case studies, BERI as potential renewable based electricity generating enterprise and Vijay Engineering Enterprises as service provider of RE products for thermal applications, enterprise of supply of sized biomass, and acting as Renewable Energy Service Company. Representative from WII explained step-by-step process of the EOI leading to project selection. Representative from ‘Husk Power’ described how they are able to provide electricity on pure revenue model through husk based gasifier in 65 villages (including those which are grid connected) in the states of Bihar and UP. They are able to recover fully operational cost but have not loaded the project management costs on the clients. The purpose of the workshop in Patna was to (a) create general awareness about the ACE program and its objectives; (b) mobilize response from grass root NGOs; and (c) Include livelihood NGOs in the ambit of the program along with NGOs working on renewable energy. 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