Case Studies UNDP: RUSH AND REED CONSERVATION AND DIVERSIFICATION PROGRAM, Sri Lanka
Solution Forum 5- Energy conservation in south indian tea industry undp
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ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA
Executing agency: Tea Board of IndiaImplementing agency: TIDE
GEF agency: UNDP
Focal area: climate changeGEF grant: US$ 0.975
Co-financing: US$ 1.1millionConcept approval date: October 2005
CEO endorsement date: 25 July 2007
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PROJECT STAKEHOLDERS
Tea BoardTIDE
UPASIELPRO – energy auditors
Tea factories in south IndiaEquipment suppliers
Commercial lending institutions
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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
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India and the major tea producers
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The south Indian tea sector Production 241 million kgs ( export about 30%) Price realization US4 178 million
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Specific energy cost and consumption
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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
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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
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Barriers and risks in energy use reform
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Project design, issues, barriers, interventions
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PROJECT MANAGEMENT ARRANGEMENTS
PSCChairman Tea Board
NPD, Executive Director, Tea Board Coonoor
National Project Manager, TIDE
Technical Team for
Implementation
Accounts and audit
Documentation
Technical Advisory Committee
UPASI –Planter’s Association
Qqqq
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Key components of project implementation
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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
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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
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Detailed energy audits
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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
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Post audit performance studies
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Investments made in energy conservationCategory No of
factoriesInvestments 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
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Equipment wise investments in 100 factories
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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
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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.
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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.
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Scaling up and possibilities?
Where do you think we go from here?
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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; [email protected]; [email protected]
Ms Svati Bhogle, National Project Manager, TIDE. Tel 0802331556 [email protected],
Mr Srinivasan Iyer, Team Leader, Energy and Environment Unit, UNDP, 55, Lodhi Estate, New Delhi. Tel: 011-46532333; [email protected]