REPORT
On
Learning & Sharing Workshop
“Waste -To - Energy Solutions
and
Public - Private - Community – Partnerships”
Hotel Beverly, Chennai
September 23, 2008
Organized by Supported by
Development Alternatives
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Table of Contents
Contents
1.0 Background ...............................................................................................................3
2.0 Introduction ...............................................................................................................3
3.0 Proceedings of National Workshop in Chennai ..........................................................5
Welcome address .............................................................................................................5
Session I - Presentations ..................................................................................................6
Dr. K. Vijaya Lakshmi –Vice President, Development Alternatives...............................6
Mr. Batdelger Luuzan, Policy Specialist, UNDP, Bangkok ............................................9
Mr. Anjannapa –MPPL Renewable Energies Pvt. Ltd., Bangalore ............................... 11
Mr. Abhishek Sharan, Chief Business Development Manager, DESI Power, Bangalore
.................................................................................................................................... 12
Mr. P. Muthuswamy, Director, Tamilnadu Electricity Regulatory Commission
(TNERC), Chennai ...................................................................................................... 13
Mr. Vijay Bhaskar Reddy, SLT Power Ltd., Hyderabad............................................... 16
Open Discussion............................................................................................................. 17
Observations .................................................................................................................. 20
Session II- Presentations................................................................................................ 21
Mr. Sajidas, Director, Bio Tech Ltd., Trivendrum........................................................ 21
Open Discussion............................................................................................................. 21
Concluding session......................................................................................................... 27
Annexure I – AGENDA ...................................................................................................... 28
Annexure II – List of Participants ........................................................................................ 30
Development Alternatives
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1.0 Background
Development Alternatives (DA) - a non-profit organisation established in 1983
for creating large scale Sustainable Livelihoods, works on the variety of programs on
Economic Efficiency, Equity & Social Justice, Environmental harmony, Resource
conservation and self–reliance in different pockets of India.
In Southern India DA has been working in District Namakkal since 2005, through the
CLEAN-India programme (an environment education-cum-action program for school
students and communities) in partnership with a local based organisation called
Rathinasabapathy Environmental Rural Development Organisation (RERO).
During the implementation of the CLEAN Programme the then District Collector
(DC), Mr Xavier Nayaggam, expressed interest to associate DA with a waste-to-
energy initiative of the district. With that commitment from the District Collector’s
office, the local Municipal Corporation and a local entrepreneur Subhashri Bio
Energies Pvt Ltd (SBEPL), DA conceptualised the project titled ‘Sustainable Local
Energy Services in Tiruchengodu Town’ and submitted the same to UNDP under the
Public Private Partnership for Urban Environment (PPPUE) program. The project
started in January 2007 and is scheduled to be completed in the December 2008.
2.0 Introduction
The project titled ‘Sustainable Local Energy Services in Tiruchengodu Town’ aims to
initiate a mutually benefiting public-private-community partnership (PPCP) model.
Namakkal District is the one of the biggest hub of the poultry industries in southern
India. Looking to the amount of available waste to convert into the productive use
Subhashri Bio Energies Pvt Ltd (SBEPL) – a district based local private entrepreneur
installed an indigenous bio-methanation plant for electricity generation. The plant
was first tested and then running with its half capacity. There are many issues
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related to the sustainable operation been resolved by SBEPL management with the
support of the local neighbouring poultry owners.
There are two major issues – (i) assured supply of raw poultry litter and (ii) selling of
digested slurry as organic fertilizer.
To attain planned operation at maximum capacity, it requires an uninterrupted supply
of raw material and assured selling of manure. This could be obtained only by proper
long term agreement among the poultry farmers in the area and user of the fertiliser
in and outside the district.
With indirect involvement of SHGs and agriculture practitioners in and around the
district and by supplying the generated electricity with more reliability to the
associated farmers at affordable costs, sufficient revenues are possible to be
generated and both private entrepreneur and poultry farmers can get mutually
benefitted.
This project has created awareness for the waste utilization for energy production
among the public sector as well as generated interest among the investors and
technology providers.
The project encompasses four blocks of the district surrounding the Tiruchengodu
town. The project is building conducive environment for the agreement on
partnership and enhancing the capacities of various stakeholders for developing for
the same.
By efforts for introducing the revision in the laws for the feed in tariff and involving
the district and relevant state level agencies to demonstrate a PPCP model with
innovative delivery models to enhance livelihood opportunities availing by setting up
sustainable local energy services.
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3.0 Proceedings of National Workshop in Chennai
The National Workshop was organized jointly by DA and RERO at Hotel Beverly in
Chennai on 23rd September 2008.
Welcome address The workshop began with Mr. Arndt Husar,
Program Officer UNDP country office
welcoming the participants. He gave a brief
account of the function of UNDP in various
sectors that include democracy,
governance, water sanitation etc. He said
that one of the core deliverable of the
organization is capacity building in various
countries to help in coping up with the enabling environment both at the community
and individual levels and this workshop is a part of the approach to help look at ones
own capacity to tackle the issue hence its important to look at all the enabling
environment for daily business, for example community can look at improving
livelihood options, entrepreneurs for business.
The background of this workshop is to look at sustainable long-term partnerships
that can be replicated and the learning’s taken to other places to help in getting the
bio energy projects of the ground, The aim of this project was to look at all of this
through the energy services provided with transparency and accountability The final
output of this project was to get a PPCP model.
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Session I - Presentations Dr. K. Vijaya Lakshmi –Vice President, Development Alternatives
Development Alternatives has been
working in urban services and this project
was challenging to work on Pro Poor Urban
services that will benefit the poor in the
community. Namakkal came into the radar
as we were in touch with the then District
Collector Mr. Nayagam who was able to get
ISO certificate for the district as a clean city
with regard to the MSW management but the peripheral areas of the district had
poultry waste that was sent out to other states. The potential involved was not
explored hence it was thought that through the initiation of this project a PPCP model
could be possible. DA was not able to implement the project for a year and during
this time the Private sector which initially agreed to work in partnership moved on.
Over the past one and a half year we have got a better understanding of what could
be a good model, one of the constraints in the project was the changing of the
District Administration hence there was a lot of issues in getting the project through.
Some of the important points covered in the presentation are as follows.
� Energy Crisis and the need for waste to energy projects
� The importance of a public-private community partnerships as a key to long term
sustainability
� India is an organic country and hence we have a lot of scope for generation of
energy from waste and production of manure as a by-product,
� It is important to learn from people who have successfully initiated waste to
energy projects and understand how community can be involved in an agreement
and move on from a project mode to a partnership mode
� There is huge demand for energy and people are looking for an alternative
sources
� The term PPP is very fancy and only large-scale projects are successful but not
the small scale doable projects or community partnerships since they are not
formally endorsed.
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� The project needs to be looked at with a business orientation and not charity and
when the partnerships are formulated it needs to be on a give and take mode.
� Though huge amount of wastes, entrepreneurs and technology is available it has
not been successful as people are not coming forward for a common purpose.
� The district generates about 2500 tons of waste everyday small or large projects
can be set up.
� The main object of this project was to enhance livelihood options through the
forward and backward linkages and the energy produced go to the community
directly rather than the grid.
� The aim now is to create new delivery models with the preference of technology
and engage the private sector and build capacity of these sectors.
� DA’s role was to delivery the tool to enable partnerships with the private and
public sector.
� These new ideas need good support of the policy and institutions than replication
� TNERC is willing to support by changing the tariff for the waste to energy project
its important that the private sector hold consultations with the department and
take advantage of the situation
� In this project the role of the Private entrepreneur was detailed and there was a
scope for PPCP through the sale of manure,
� The local NGO Partner was instrumental in creating awareness and local market
for sale of manure and this was thereby enhancing livelihood opportunities
� The private party was interested in monetary returns which was not easily
achievable hence they moved on
� The important thing is that the current regulatory system does not allow
independent power producers to operate It is therefore necessary that all the
Government departments like MNREC, TNERC, TEDA, and SEPCO to come
together for a unified purpose and come up with a model draft that could lead to
good PPCP models.
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� One of the possibilities will be to identify small-scale projects like100KW where 5-
6 farmers can come forward and set up a model but this is not possible because
people don’t want to invest.
� Need to look for more successful and affordable models
� Technology not standardised for different scales of production
� Cost benefits and risks are not visible and transparent
� Need for independent Power Producers entering the market to forge partnerships
� Looking for level playing field for the manure sale
� Power purchase agreements need to be more attractive to incentives green
power production
� Subsidies are not provided based on performance and thus leading to lack of
accountability of entrepreneurs, do not have formal mechanisms to cooperate/
co-opt various line departments for promotion of Green power projects
For example: MNRE subsidies become meaningful if green manure also gets
reasonable returns
� Need for district level schemes give preferential buying of organic manure
produced by the power producers on a preferential basis
� TNEB, TNERC can come out with interesting schemes such as Green Power
Wheeling benefiting not only the power producers but also the forward and
backward supply-chains
� Need to shift from project mode to partnership mode just the same way as any
infrastructure or water project- with a only difference of partnership with
communities for increased sustainability
� Need to play the role of facilitator with district governance system in place
Forward Linkages
� Generation of renewable energy
o Sale at competitive price
o Ensure that local community are benefited
� Generation of Organic Manure
o Assured sale
o Local market development for organic manure
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Backward Linkages
� Procurement of raw materials
� Sustainable supply, consider competing use
Mr. Batdelger Luuzan, Policy Specialist, UNDP, Bangkok � Provision of Access to Basic Services
like primary education, health care,
water supply, sanitation, solid waste
management, renewable energy supply
– is vital for poverty eradication & the
achievement of the Millennium
Developmental Goals.
� Basic services are public goods and the accountability for their delivery remains
with the State/Public Sector
� The growing needs for basic services is not matched by the existing capacity
(e.g., human & financial) of traditional service providers
� As a result Various Non-State Actors (large & small, formal & informal private
sector, CBOs, NGOs, SCOs, FBOs) are filling-in the gap in the context of a
regulatory vacuum
� The poor are the sufferers as the get service at high cost that is poor in quality
and limited in quantity
� PPP’s can provide practical tool, solutions or framework for people to work
together
(1) Deliver Basic Services to the Poor & contribute to the achievement of
MDGs targets,
(2) Provide Economic/Livelihood Opportunities to the Poor,
(3) Ensure Participation & Representation by the Poor, &
(4) Contribute to Local Development Efforts
� There are various types of PPP like Cooperatives, Service Contracts,
Management Contracts, Lease, Concession and Build operate transfer
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� Few slides explained the various types of PPP arrangements that are present like
Management Contract, Leasing, Affermage, Franchising, Build Own and Operate,
Build Operate and Transfer
� The PPP approach in itself does not necessarily benefit the poor
� Pro-Poor PPP work due to
(1) Private partner – efficiency & innovation to maximise profits
(2) Public partner – enables, sets standards, monitors performance, regulates
(3) Commercial interests of partners are met in a way, which benefits broader
consumers & the poor themselves (as consumers, as service providers, as
sub-contractors, & etc.)
(4) Civil Society – facilitates, harmonizes, oversees
� The Various PPP Options can be
(1) Usually a contract between a LG & private/non-state actor
(2) Options: service contract, management contract, lease contract, concession
contract, B.O.T., etc.
(3) Name is not important; being clear about basic arrangements is the key!
(4) Business, NOT Charity/Philanthropy
� Need for concerted efforts at all levels of a government:
(1) A system-wide review for contradictory & conflicting policies, rules &
regulations
(2) Their streamlining for consistency
� The need for implication of policy and regulatory framework
� Need for concerted efforts on the part of All Partners to make the Sustainable
Local Energy Services Provision in Tiruchengodu Town, Tamil Nadu State, in
India to;
(1) Develop Public-Private-Community Partnership model for poultry litter
management
(2) Generate electricity (3.7 MW of power) from the poultry waste
(3) Feed it to the state grid & for the Benefit of All Parties.
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Mr. Anjannapa –MPPL Renewable Energies Pvt. Ltd., Bangalore
He gave a presentation on the functioning of
the MPPL power plant and the importance of
supply chain management for the functioning
of the plant; some of the important points of
the presentation are as below;
� Biomass energy can fulfil the global
energy needs and waste lands that make
up 25% of the earths surface can be used
to grow the biomass
� Biogas is an important pillar for the enhancement of renewable energy
� Renewable energy has been to a large extend by the developed countries
� There is a need for sustainable biomass supply chain and this can be achieved
by utilizing land to grow energy crops where they are not used for growing food or
fodder crops
� Agro processing unit residues like baggasse and various types of husks can be
used primarily in cogeneration schemes and as secondary fuel in stand alone
biomass power plants
� Primary fuel can be crop residues animal or horticulture waste, which have no
current commercial applications
� The various process in the biogas plant was explained in detail
� Biogas plant management and service like substrate enhancements that include
Improvements with regards to the cultivation and harvest of energy crops used
for the production of biogas, fermented residue processing and biogas
processing to natural gas quality
� 7.5 million kWh/year power export to rural electric grids that is typically, adequate
for needs of 10 to 15 Villages
� Ensilaging is the transformation of plant material into a succulent preserved
fodder/feedstock. The preserving acid is produced by bacteria, which grow and
multiply on the cut crop.
� This silage produced can be stored in silage pile, bags, or bales
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� The liquid organic fertilizer has wide ranging applications, like grains and sugar
cane farming, it has preferential application fro horticulture, product farming and
short cycle crops which includes fodder and energy crops
� This has positive impact on nature like decreased odour of manure, less emission
of methane and reduced ground water contamination
� The waste heat can be used for cold chain establishments like food processing
and preservation and such infrastructures created would encourage non grain
farming, enhance the farmers income ,serve the nutritional requirement of the
community and open up significant opportunities for export
Mr. Abhishek Sharan, Chief Business Development Manager, DESI Power, Bangalore
He gave a presentation on the case
study of DESI Power in a village called
Baharbhari located at Bihar and he
explained how the project took into
consideration the socio-economic and
the environmental factors into
consideration and the program for
each village is different based on the
requirement and also participation of the community, the most important issue is the
capacity building of the villagers and the need to promote local enterprises because
the village economy is vital and will lead to long term sustainability by creating job
opportunities
� Socio-economic development of villages through the provision of electricity and
energy services for economic activities.
� Large scale commercial demonstration of EmPower Partnership Program in 100
of villages in one district of Bihar to promote simultaneous building of power
plants, energy services and micro enterprises
� ‘DESI Power’ utilises the biomass gasification technology, this is provided by
Netpro Renewable Energy (India) Pvt. Ltd., Bangalore.
� First Biomass gasification unit was set up in TARAgram, Orchha, Madhya
Pradesh in 1996
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� The Baharbhari project is owned by the local village cooperative
� All micro enterprises and Energy Services are being run and managed by local
villagers.
� The business units set up are traditional enterprises
� The project has brought about Value addition to local recourses and additional
income generation
� The 100 villages programme is to create local sustainable markets for
decentralised electricity supply linked to job creation and development of village
industries in rural Bihar. Initial concentration is ONE District
� The technology runs on biomass gasification it is important to meet the biomass
supply for the project
� Supply chain management of biomass needs to be a business unit
� The 100 village project has received funding from a German investor, World
Bank, Sale of CERs and a commercial loan from ICICI Bank and IFMR Trust
� Project currently implemented in 4 villages
� A management training centre has been set up to train local entrepreneurs and
staff, especially women, for all levels of work and management.
� Also a ‘DESI-MANTRA Capacity Building Steering Committee (CBSC) was
established by DESI Power. The members of CBSC are local intellectuals,
agriculture scientists, bankers, media people and educationalists.
� Till date, almost 60 men and women (including existing staff) have been trained
and few are under training, almost 30 of whom are now working at DESI Power..
� The trained men and women are responsible for the plants O&M, biomass and
load management, project development, monitoring, execution, bookkeeping and
administration activities for existing plants and also for the next batch of projects.
� A knowledge based partnership for replication of the 100 Village EmPower
Partnership Program in other parts of India (subsequently also in other countries)
has been made between DESI Power and ICPCI
Mr. P. Muthuswamy, Director, Tamilnadu Electricity Regulatory Commission (TNERC), Chennai
Mr. P. Muthuswamy spoke on behalf of TNERC where he gave insights in the
regulation of the commission
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� The electricity Act provision of 2003
states the promotion of environmental
policies which has an important
section that stress on the need to
promote and co generate electricity
from renewable sources of energy
� Need to provide suitable measure on
sale of electricity to any person and
also specify the source of generation
to the buyer
� A percentage of the total consumption of electricity is in the area of distribution
licensee will be from the renewable source of energy
� TNERC sets the tariff by following the guidelines given by the National Electricity
policy in which under the section 5/12 of the policy there is a mention of
conventional source of energy as the most environmental friendly and there is an
urgent need to generate electricity based on such sources of energy
� There is also an important provision which is meant for waste to energy projects
especially the conversion of Municipal Solid Waste to energy in urban areas and
also recovery of energy from industrial effluents has also been encouraged from
a point of view to reduce pollution apart from generating additional energy and
these are provisions in the act and the National policy, and when orders are
drafted these are taken into consideration
� The commission of TNERC have already issued orders on the non conventional
sources of energy and various tariff has been fixed like wind energy, biomass,
bagasse waste etc, but no tariff has been mentioned generation of electricity from
waste to energy since this is a specialized source in itself the commission cannot
fix a general tariff order for this purpose
� For wind energy one can fix the capital cost at 5 crores / mega watt and all this
put together with the operation and maintenance cost the tariff can be set but it is
not possible in the case of waste to energy projects since it has its own
specifications like the specialized area which may cost around 10 crores and will
depend on the project chosen but it is very important to the regulators because of
the multiple benefits that it has
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� The TNERC have issued orders on tariff for non conventional sources of energy
that include bio gas, and other forms of renewable energy but no tariff has been
set for waste to energy projects since the cost is project specific depending on
the kind of waste and these need to be considered since they help in reducing
waste, pollution and also have additional benefits like manure that are byproducts
of the process and a special tariff rate needs to be fixed
� It is important to file a petition with the government so that they can fix a special
tariff for such special initiatives
� The government pays Rs. 15-10 for per unit of solar power since rates cannot be
fixed for wind and biomass energy the MNRE pays a special incentive of Rs. 12
per unit and this has been issued in the interim order tariff of Rs 3. 15 which put
together with incentive of Rs. 12 will give the generator Rs. 10-15 which may be
fixed at Rs 15
� Fixing tariff is entirely the power of the Regulatory commission and specially for
the conventional source of energy and for the renewable source of energy the
commission has fixed 10% of the energy for the distribution licensee to purchase
from the non conventional sources so for the time being preference will be given
and there is no need for the bidding process it can directly be offered to the
distribution licensee and the licensee in return should purchase from the
generator at the rate fixed /specified by the commission
The generator can file a petition to the commission based on the cost of the
project there are 10-12 parameters that are to be considered and the regulatory
will come out with a special tariff , the various facilities that can be derived from
the regulatory is not exhaustive one needs to explore them
� In the TNERC tariff order the following issues are taken care off
� 1) the distribution licensees will purchase power from the generators plant as it is
fixed at 10% and the licensee will definitely have to purchase
� 2) The tariff will be fixed on the capital cost of the project and various other
issues
� 3) In the order it will be mentioned that the power supply facility must be
provided by the distribution licensee as on date the previous order says that the
interconnecting line and the breaker at the generators end should be provided by
the distribution licensee at the cost of the generator but now the commission is in
the process of revising the orders like if you prepare to sell the entire power to the
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distribution licensee in that case the inter phase line should be erected by the
distribution licensee , the regulatory is thinking in these directions and is yet to
issue an order in this particular aspect
� 4) The commission gives concession on the wheeling charges for power and
wheeling charges have been fixed at 5% in case of wind energy and 6% in case
of Biomass energy
� 5) Special transmission and wheeling charges will be issued in the order if
anyone files a petition, because the current order is not meant for waste to
energy projects
� 6) The various other facilities provided by the commission are payment security,
since the policy says that the generator must be provided with the payment
security
� 7) There are many advantages that are provided in the order except banking
facilities since the power produced will be firm/Company power
� The example regarding triple PPP mentioned in the regulatory background may
seem like a vacuum for the waste to energy projects but it is not so since the
order needs to follow certain formalities
� Any petition filed for the waste to energy project is a special area for the
regulators and the commission will come out with a special order for such project
Mr. Vijay Bhaskar Reddy, SLT Power Ltd., Hyderabad
� The plant is close to Hydrebad, and is of
3.5 MW capacity it is based on
combustion technology; FBC boilers have
been used for this technology and are the
first of its kind in India
� This technology was chosen because it
was cheaper and easier to run the plant,
It has been successfully running on the
poultry waste for the past 3 years.
� The plant set up started in 2004 with a DPR and no financial assistance from
MNRE, the total cost of the project was18 crores, the project was completed wit h
a personal investment of 60% and a loan of 40%
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� The project is sustainable due to the CDM credits
� The technology used is Indian with internal modifications made on the nature of
the poultry the tubes are designed in such a way that they need to be changed
once in 4years
� The most important thing in this technology is to maintain the temperature or else
it will lead to clinger formation from the poultry litter
� The end product ash that is generated is sold to brick manufacturers close to
Hydrebad at Rs. 800 per ton of waste
� The ash is not accepted by the farmers as fertilizers, but if it can be converted in
granular form then they can be sold as fertilizer to the farmer as it will be more
acceptable
� The raw material for the plant is procured through the contractors, since
approaching individual farmers is not feasible with regard to price as they
increase the price when approached individually
� The contractors supply 120tons per day which is used to generate 3-5 MW /hour
which is about 84,000 unit per day
� The project has a 20 years PPA with the AP Government and a tariff of Rs 3 has
been fixed which is low, the unit is viable due to the carbon credits
� The project cost is Rs 5 Crores per MW, which is cheaper compared to other
technologies
� A Nodal agency NET CAP in Andhra Pradesh has made restriction on the
number of units per district and have suggested that license be given to only one
unit per district else there will be competition for raw material and finally the
failure of the plant to supply the required amount of electricity
� The Company has recently initiated talks with an MNC who are interested in
setting up such units all over India
� The World Bank has approached them in setting up a similar project in
Afghanistan
Open Discussion The presentations was followed by open
discussions and the session was chaired by
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Mr Parthasarathy, Ex Commissioner Salem, the major points of the discussion are
as below
� The possibility of investing in a Tripartite agreement where the investor is given a
special tariff for the power supply and in return the public sector places some
obligations for involving the community and then the investor decided how he
wants to operate
� To set tariff for special projects the investor needs to file a petition to the
regulatory commission, since in a regular PPA agreement the tariff is calculated
for a 20 years term and the average amount is given as tariff
� The regulatory commission is only
interested in fixing the tariff and are not
interested if the community is benefited
or the environment is protected
� The regulatory commission feels that
generating electricity from non-
conventional sources and selling it is in
itself a benefit to the society and as regulators they can help in setting tariff
� No much competition from generators to regulate this kind of renewable energy
though they need not get approval or license from the Sate Government for this
kind of generation
� The generators felt that if they were
given such assurance then its they
their responsibility to get the loans and
start the project
� Communities are benefited by such
projects as it creates employment
opportunities and creates benefits
directly and indirectly
� The Government has no power to impose such projects but the but the
distributors can demand the tariff price they want and avail subsidies on it and
distribute it
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� Since there is no distinction between the supply and the distribution, the
government pays subsidies to the distribution since they announce schemes like
6 hour free supply to rural areas
� The government has no powers to say how the energy is distributed but only in
case of emergency like war they can ask the distributor licensees to supply power
to a particular area
� In the open market the power can be sold at Rs 5-6 but in case of long-term
agreement like the PPA the tariff will be fixed on the average
� As per the Government there is no restriction on the amount of units produced
and the generator is liable for the generation and if they are sure of the
generation they can get RS 5-6 and this situation will stay another 5-6years and
may also go beyond it and if you are sure about your reliability you can sell in the
open market for a higher price
� A PPP model exist since the Public sector is buying energy from the private
sector and are getting subsidies for the service, for a successful model
� In a PPP model it is important that it does not concentrate only on commercial
objective, because the moment only commercial aspects are considered in the
long term there will be many complications and the partnership will end up facing
different problems because the communities don’t see benefit
� It is better to involve the community in the process at the beginning of the project
through it is tough since the sustainability depends on the involvement of the
social aspect
� Such partnerships can create better job opportunities and sustainability
� A solution can be put together a proposal that includes all the agreements like
the social and environmental factors the proposal will have better acceptance at
the commission DA and UNDP can support a few people to put together a
proposal of this kind
� This may help in getting a better tariff from the Regulatory commission
� Since Government only looks at product cost, it is possible to include the cost of
litter so that the community factor is also involved
� A good proposal of this kind can be submitted to various funding agency for
capital investment in the project
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Observations The following observations after the first session was made by Mr. Parthasarathy
who chaired it the points are as below
� The key learning presented in the morning presentation by Dr Vijaylakshmi, DA
could be the basis for a new project
� A similar workshop was organized a year ago and we thought that we had found
the solution but the technology providers backed off since there were no
investors
� The workshop had various different technology providers displaying their
technology and was a good learning session
� After the current workshop there is a clear understanding what technology can
provide and it calls for a Phase two of the project
� It may be easy to do a commercial or a pure developmental project but the
combination that this project suggests is difficult to handle as it involves all the
aspect
� This project can be done swiftly by getting UNDP and the Regulatory commission
on the board it can get going in no time but the special aspects this project like
community participation will be lacking
� Direct and Indirect benefits will be there but the commitment and involvement
required for sustainable development will be lacking
� It is better to work on the difficult model of involving the community for long term
commitment and success of the project
� There is as need for business models with social commitments the morning
session was extremely useful as it gave insights into understanding the problems
and complexities of involving the communities
� The Government needs to take up some responsibility in this aspect and help in
drawing a guideline for such projects that are crucial for the well being of the
common man
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
21
Session II- Presentations Mr. Sajidas, Director, Bio Tech Ltd., Trivendrum
Mr. Sajidas made a presentation of his technology and the lead points are as below
� Biotech is a charitable organization focusing on the management of renewable
energy and conservation of energy
� The projects are initiated both at the micro level which includes individual
households and macro levels that in clued large institutions
� The models developed for domestic plant are able to convert food waste into
cooking energy, there is also eco friendly toilets in the model where the toilets are
linked to biogas plant
� A ongoing waste to energy programme in different parts of Kerela is looking at
small capacity power generation plant of 3-10 KW Capacity
� Disposal of waste is big problem in the state hence Panchayats and other
government departments are encouraging the program
� In the integrated waste management program, different technologies are used for
the single treatment plant and one of the main advantage is that there is no
accumulation of treated waste
� Due to the simplified technology these plants can be installed by individuals who
have sufficient waste
Open Discussion
The presentations was followed by open discussions and the session was
chaired by Mr Batdelger, UNDP - Regional Director Asia Pacific the major points
of the discussion are as below
� The session raised questions as to whether the technology can be used for
poultry litter and the scale at which it can be set up so that the farmers can find a
solution for the litter and also since its a simple technology a group of SHG
women could set it up for cooking gas generation or lighting
� A similar project was installed for the Kerela State Poultry Development
Cooperation with a bird capacity of 15,000 and the biogas produced was
converted to power supply of 3KW capacity which was used for lighting purpose
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
22
� For the question on maintenance of the unit it was said that there is no
maintenance required for the domestic plant because it is designed in such a way
that once fresh waste is feed in the digester, the treated waste come out
automatically, for the bigger digester if non degradable waste is feed along with
the degradable waste it gets accumulated and can be cleaned once in 3 years
� The cost of the unit is Rs. 10 lakh and since in the State the main problem is
disposal of waste the Panchayat invests in the project through their plan funds
and Biotech helps them in getting subsidies from MNRE and in case of small
power generation plants Rs 40,000 is released as subsidies per KW of power
generation
� All these projects are implemented with financial assistance from MNRE and
there are no delays of getting subsidies, the subsidy is released in a years time
� In Namakkal the panchayats have limited funds hence a loan needs to be taken
from the bank
� It was said that for a 1 lakh bird capacity the project cost will be around Rs 50
lakhs
� The farmers in Namakkal are not willing to take the risk and insist on a
demonstration unit
� Poultry litter is a sensitive issue farmers willing to take risk only if they can get
funding from various agencies
� It was suggested that since farmers need electricity it will be possible to put up a
plant if 5-6 farmers come together, but then there are practical difficulties since
the farmers are situated far away from each other
� The problem are different like in Kerela it is with regard to waste disposal but in
Namakkal it is more of energy need and need to look at model that is beneficial to
the farmers
� In Namakkal the waste disposal is not the problem as its easily got rid of by
selling it to traders from other states hence we need to see if this technology is
the solution or look at other technologies like burning, gasification etc there are
so many solutions and the farmers in Namakkal needs to decide what they are
interested in doing since litter is not of concern
� The farmers are paying a tariff of Rs 5 per unit consumption of electricity and
since the poultry has different requirements of electricity hence need to be
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
23
distributed evenly and during power cuts the farmers use generators that run on
diesel/ fuel and generate about 40KW energy /hour
� It was said that the litter of 1lakh birds can generate 100KW of energy and the
project will cost around 5-60 lakhs of which 3o lakhs is subsidies, the farmers can
avail loans from bank and set it
� It is possible for the big farmers to invest but its is difficult for the small farmers to
make such commitments
� Since a private investor committed that he would bring in equity money to set up
a plant it was suggested that 6-7 farmers get together and contribute 7 crores
towards setting up the project and they can become a private limited company
� The association of the farmers can be a group of friend who want to do business
together and unless people take this risk it will not be possible to set up the plant
as it may not be possible for the government to set up a demonstration project at
this point in time as it needs to be started all over again
� Farmers are reluctant to invest after seeing failure of big investors like GK bio
and Subhashri Pvt limited and hence if successful demonstration unit are set up
then farmers may be interested in investing in captive power generation to meet
individual needs
� Suggestion were made to take a group of farmers to see the Nalagonda project
since the investor of the project is also using chicken litter and the plant is
running successfully
� It may be better to get the investor from Andhra Pradesh to partner in the project
than having government set up model project
� The veterinary college is also planning to establish a unit in Namakkal and are
mobilizing budgets for this and this will be to educate the farmers and transfer the
knowledge
� The Indian Government may be interested but the question is the attitude of the
farmers as to what they require and if they are not ready to take the risk then
nothing will happen since as of now we are taking risk as there are power cuts
and may worsen in future
� Only rich farmers may be able to take risk by investing huge amount in the
project we cannot expect small scale farmers to take that risk
� UNDP project in Namakkal has created an awareness and energy projects will be
set up in the future and we cannot expect immediate results
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
24
� Since we have technology providers from various parts of the country who are
interested in setting up their technology at Namakkal, UNDP and DA can talk to
banks or donors for help, as we have large technology like the AP one and also
the cheap and efficient technology from Biotech an they are all within their
context we cannot take and put these technologies in Namakkal because in this
context we need to find a solution suitable to Namakkal
� The idea of this workshop was to bring in different ideas and see if one of them of
them is compatible or adaptable in the Namakkal context
� The workshop has made a lot of things clear like the current energy production,
where it goes, how to get rid of the waste, priorities and once there is a group of
like minded people with similar interest like energy production or waste
management, UNDP and DA could help the group get in touch with the right
people to get technology, finance or consultation
� It is difficult to get like minded people in Namakkal and hence it may be
successful in the coming years not immediately
� Since both the larger and smaller technology exists it would be helpful to know
what the farmers in Namakkal prefer
� The crunch is between the 1 lakh bird farmers and the big farmers the 1 lakh
farmers require continuous supply of electricity but are experiencing regular
power cuts and high costs, there is also the unavailability of a local provider who
can supply them continuously
� There is a need to look at whether an investor be brought I n to build the plant or
take support from the government, and whether a group of investors can be
organized to invest in a private limited or a private undertaking
� Business options exists as people require power and raw material is available,
people are willing to be partners but will not be able to invest
� Although an energy provider exists in Namakkal, he is not supplying energy back
to the farmers as it goes into the grid
� The farmers in Namakkal are interested in captive power generation for their own
use
� If a private person sets up the plant and supply energy the farmers are ready to
buy, and since he will be providing the raw material the energy can be supplied to
him at a good price
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
25
� The farmers will like to have a big plant similar to Subhashri but with better
technology and results
� It was felt that the farmers wanted technology that could replace their generator
sets since consumption of electricity and also the use of the generator set were
costly for operation of the farms
� As long as the farmers get 100KW supply of electricity they are fine with the type
of technology adapted and now the potential is to explore different options of
technology and see how it can be potentially combined to serve the purpose
� Since poultry business is risky as a bird flu can hit the business its important to
look at smart technology that would combine both poultry and agricultural waste
� The generators used can be converted to biogas engines to increase efficiency
and also cut the cost of power generation, the design will be based on the nature
of waste, conventional models will not work since it leads to scum formation, this
can be overcome by putting in pre-digesters
� A cooperate is possible but program needs to be strong and the need for supply
chain management, in the case of captive power generation the power is used by
that particular village and there is no supply to the grid hence the farmers see the
benefit
� Initially the understanding was that the community along with the private sector
was to set up a tripartite partnership in an organized way to manage the poultry
litter and the subsidies will be given to the private sector so that there is a steady
and reliable supply of electricity and in return the farmers will supply waste
� The difficulty with the project was the change in the district administration and low
cooperation form the community
� Things are clear and it seen that the farmers are not interested in decentralized
energy supply but have own captive power stations
� Technology providers like biotech made an attempt and gave proposal but did not
go further due to finance and people were not willing to pay for the report
preparation
� The regulatory commission is ready to give the wheeling agreement that power
may be feed into the grid with condition that the farmers associated with the
project will be given a priority service in terms of power cuts
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
26
� There can be an agreement that the energy is feed into the grid but a part of it is
supplied to the farmer who is a partner in the project, this is possible at the
inception of the project and not midway through
� A new proposal put together from the private sector and farmers is a private
sector partner as he requires energy The proposal needs to have high
environmental standards , dairy promotion and a community partner like RERO
can monitor and follow the trainings done, capacity building development and the
potential agreement is that the private sector bring in investment , the farmers as
a private sector supply raw material and also buy power
� The community partner will ensure environmental standards, social standards
and capacity building of the private partners
� In Nammaakal if the District Collector is on board this type of undertaking can
take place as permission is required to construct a factory and having the public
sector on board understanding is easier
� Many different models can be tried out the investor and the technology required
will be decide d by the private sector partner because they are taking the risk of
investing
� There are many ideas that are emerging and there is a need to invest in a study
to understand what the farmers requirements and not to assume before hand a
certain type of implementation
� There is a need to look around and choose the best model because all the
models are good on their own aspects
� There are interesting solution to different circumstances and situations and
farmers with different needs and the solutions need to be looked at accordingly
� There is need for greater awareness in Namakkal, the project may not happen
immediately but surely a change can be accepted in a few years from now
� The demand needs to come from the people for the success of the project, like
the Baharbhari project of Desi power can set an example on decentralized use of
energy rather than depending on the government
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
27
Concluding session Dr. K. Vijaya Lakshmi concluded the session by staking that there is still not a need
based approach in Namakkal and there is a need to generate greater awareness in
Namakkal and people need to come forward to take initiatives with the risk involved,
she said that the project has been able to create an awareness and though we may
not see immediately a PPCP model it will definitely realize in the near future since
people are aware of the benefit of the project and it is important that people take
initiatives in setting up decentralized power plants to fulfill their energy requirements
rather than depending on the Government to take the step In this way villagers can
seek partnerships for service delivery and they can get into a revolution of helping
themselves in fulfilling there energy needs.
Dr. K. Vijaya Lakshmi concluded the session by thanking UNDP for their support
and constant motivation; she also thanked the technology providers, farmers and all
the participants of the workshop and hoped that a partnership can be forged before
the completion of the project
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
28
Annexure I – AGENDA
Learning / Sharing Workshop
“Waste-to-Energy Solutions and Public-Private-Community-Partnerships” HHOOTTEELL BBEEVVEERRLLYY,, RRAAJJAARRAATTHHIINNMM RROOAADD,, CCHHEENNNNAAII –– 660000 001100, 23
RD SEPTEMBER, 2008
TIME ACTIVITY SPEAKERS
10.00 – 10.15 Inaugural Address by UNDP and Development Alternatives
Mr. Arndt Husar & Dr. K. Vijaya Lakshmi
10:15 – 10:40 Background of the project, scope of the workshop and proposed Namakkal PPCP Model
Dr. K. Vijaya Lakshmi, Development Alternatives
10.40 – 11.00 Tea Break
Session I – Chair: Mr.Parthasaraty (IAS),Ex- District Collector,Saleml
11:00 – 11:30
Role of PPP in Pro poor Urban Services – International experience Presentation on the concept of “waste to energy” and its relevance in today’s world
Mr. Batdelger Luuzan, Policy Specialist, UNDP, Bangkok
11.30 – 11.45 Presentation on community participation in implementation of Renewable Energy Project
Mr. Anjanappa, MPPL Renewable Energy Pvt.Ltd, Bangalore
11.45 – 12.05 Presentation on Participation approach, issues and learning from Baharbari project by DESI Power
Mr. Abhishek Sharan, Chief Development Manager, DESI Power, Bangalore
12.05 – 12.15 Discussion
12.15 – 12.30 Address by chair of the session Mr. Parthasaraty (IAS) EX-Collector, Salem
12.30 – 1.15 Lunch Break
Session II – Chair : Mr. Batdelger Luuzan Policy Specialist UNDP
1:15 – 1.30 Case study presentation - Andhra Pradesh / India (Including CDM)
Mr. Vijay Bhaskar Reddy, SLT Power, Hyderabad
1.30 - 145 Experience Sharing Mr. Durairaju, Managing Director, Subhashri Bio Energies Pvt. Ltd., Namakkal
1.45 – 2.00 Learnings in implementation of the project on Waste to Energy
Mr. P. Subramani, Director, G. K. Bio-energy Pvt. Ltd., Chennai
2.00 – 2.15 Case study presentation on technology intervention
Mr. Sajidas, Bio Tech Ltd., Trivendrum
2.15 – 2.30 Address by Chair of the session Mr. Batdelger Luuzan UNDP
Development Alternatives
Proceedings Stakeholder Workshop, 23
rd September 2008
29
TIME ACTIVITY SPEAKERS
Session III – Panel Discussion – Chair - Mr. Prabjot Sodhi, National Coordinator, CEE, Delhi
2.30 – 3.15
Panel Discussions on viable and sustainable partnerships focusing on:
• Resource issues
• Technology issues
• Policy and Finance related issues
• Community participation in enhancing sustainability of PPCP
• Need for inter governmental coordination
Mr. Muthuswami, Ditrector (Engg.), TNERC Mr. S. K. Vel, Namakkal Mr. Siva Rama Prasad, MSME, Chennai Mr. Vijay Bhaskar Reddy Mr. Sajidas Mr. Abhishek Sharan
3.15 – 3.30 Concluding Address and key findings Mr. Arndt Husar, UNDP, India
3.30 - 4.00 Vote of thanks Dr. K. Vijaya Lakshmi, DA
Annexure II
– L
ist of Participants
Sr.
N
am
e
Org
an
iza
tio
n
Co
nta
ct
De
tails
1
Mr. A
bhis
hek S
hara
n
DE
SI P
ow
er, B
angalo
re
+ 9
1 9
844805517
abhis
hek@
desip
ow
er.com
2
Dr. T
Shiv
kum
ar
Tam
il N
adu V
ete
rinary
& A
nim
al S
cie
nces U
niv
ers
ity
+91 9
841598614
3
Dr. P
Maithaila
gan
Tam
il N
adu V
ete
rinary
& A
nim
al S
cie
nces U
niv
ers
ity
+91 9
443728122
4
Mr. V
ijay B
haskar R
eddy
SLT P
ow
er &
Infrastructu
re P
roje
cts
Pvt. L
td.
Hydera
bad
+91 9
848226472
sltpow
er@
yahoo.c
om
5
Mr. S
.Mahadevan
Energ
y C
onsultant, C
hennai
Ph: (0
44) 24424609
mahadevan86@
gm
ail.
com
6
Mr. S
ajid
as
Directo
r, B
iote
ch, Trivandru
m, K
era
la
+91 9
447792179
7
Mr. S
. P
arthasarthy
Consultant, H
ydera
bad
+91 9
849053474
silv
erfis
h1950@
yahoo.c
o.in
8
Mr. P
. M
utu
sw
am
y
Directo
r, T
am
il N
adu E
lectric
ity R
egula
tory
C
om
mis
sio
n (TN
ER
C), C
hennai
+91 9
444010444
9
Mr. A
nja
nappa
Envitech B
iogas (M
PP
L) Ltd
Bangalo
re
+91 9
980090742
10
Mr. M
.D.T
hill
ai S
ivakum
ar
Directo
r, R
ER
O, N
am
akkal
+91 9
4432-2
4921, 04286-2
34959
thill
ais
iva@
yahoo.c
om
11
Mr. S
. S
hanm
ugan
RE
RO
, N
am
akkal
+91 9
942902987
12
Mr. S
. D
harm
ara
jan
Entrepre
neur
+91 9
942902971
13
Mr. S
. K
. V
el
Poultry
Farm
er, N
am
akkal
+91 9
442229999
14
Mr. M
ativalg
hanan
Poultry
Farm
er, N
am
akkal
+ 9
1 9
841506263
15
Mr. A
nbacagan
Poultry
Farm
er, N
am
akkal
+ 9
1 9
865489680
16
Mr. R
. K
rishnan
Poultry
Farm
er, N
am
akkal
+ 9
1 9
790085363
Develo
pm
ent Altern
atives
Pro
ceedin
gs S
takehold
er W
ork
shop,
23
rd S
epte
mber 2008
31
17
Mr. D
. R
avis
hankar
Chola
mandala
m
+ 9
1 9
940047988
18
Mr. P
Raje
ndra
n
MN
TN
, C
uddalo
re
+ 9
1 9
442210977
19
Ms T
hushara
Bhaskar
MN
TN
, C
uddalo
re
+ 9
1 9
894366769
20
Mr. P
rabhjo
t S
odhi
National C
oord
inato
r, C
EE
, D
elh
i +919811811996, +91 1
1-2
6262878-8
1
pra
bhjo
t.sodhi@
ceein
dia
.org
21
Mr. B
atd
elg
ar Luuzan
UN
DP
, B
angkok
66 (o) 9771 7
324, 66 (o) 2288 2
710
batd
elg
er.lu
uzan@
undp.o
rg
22
Mr. A
rndt H
usar
UN
DP
, In
dia
+ 9
1 9
9534 9
6255
arn
dt.husar@
undp.o
rg
23
Dr K
Vija
ya L
akshm
i V
ice P
resid
ent, D
evelo
pm
ent A
ltern
atives,
New
Delh
i 011-2
6130899
kvija
yala
kshm
rg
24
Mr. P
.P.S
. G
usain
D
evelo
pm
ent A
ltern
atives, N
ew
Delh
i ppsgusain
@hotm
ail.
com
25
Ms D
hairya D
hola
kia
A
ssocia
te P
rogra
mm
e M
anager
Develo
pm
ent A
ltern
atives, N
ew
Delh
i 011 2
6134103, +91 9
8736 2
0551
ddhola
kia
@devalt.o
rg
26
Mr. G
. V
enkate
shan
Develo
pm
ent A
ltern
atives,
+ 9
1 9
345199389
27
Mr. B
. R
aje
sh
Develo
pm
ent A
ltern
atives, N
am
akkal
+ 9
1 9
751314121
28
Ms S
halin
i N
air
Environm
ent S
cie
ntist , D
evelo
pm
ent A
ltern
atives,
Bangalo
re
+91 8
0-2
6571337, + 9
1 9
980534908
dabang@
vsnl.com
, snair@
devalt.o
rg
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