unctad expert meeting: green and renewable technologies...
TRANSCRIPT
9.02.2010 UNCTAD_GENEVA_HariSharan 1
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Hari [email protected]
UNCTAD Expert Meeting: Green and Renewable Technologies
as Energy Solutions for Rural Development
9.02.2010 UNCTAD_GENEVA_HariSharan 2
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Why are new energy and power solutions imperative in the
Industrialised as well as the Third World ?
9.02.2010 UNCTAD_GENEVA_HariSharan 3
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Global ReasonsDwindling Reserves of Fossil Fuels.
Severe External Impacts of Fossil Fuel Combustion.Unaffordable Life Styles and Wasteful Consumption.
High Risk of Climate Change. Third World Reasons
The current energy and power policies have not worked for billions in the
Third World.Conventional Rural Electrification, linked to
the Centralised Power Sector Is a failure in the rural areas in the Third World
9.02.2010 UNCTAD_GENEVA_HariSharan 4
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Even today300-400 million people in India
and 1.6 billion people world widehave no access to
any form of modern commercial energy.
HUGE D I S P A R I T I E Sin
Energy ConsumptionIncome
Carbon-Emissions
9.02.2010 UNCTAD_GENEVA_HariSharan 5
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
DISPARITIES in ENERGY CONSUMPTIONPer Capita Electricity Consumption kWh / year (2003)
9.02.2010 UNCTAD_GENEVA_HariSharan 6
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
DISPARITIES in ENERGY CONSUMPTION in INDIA
Per capita consumption of electricity in 2004
75
156
218
642
647
695
1,301
1,542
2,178
688
- 500 1,000 1,500 2,000 2,500
Bihar
Nagaland
Manipur
Karnataka
J&K
Orissa
Punjab
Delhi
Goa
All India average consumption
kWh
9.02.2010 UNCTAD_GENEVA_HariSharan 7
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
DISPARITIES in INCOME in INDIA
Estimated Income Distribution
Total Population: 1166 Mio.
7
24 2025
20.4
3.6
1
10
100
11.7 104.9 116.6 349.8 466.4 116.6 Population Mio
Income Distribution 2008
9.02.2010 UNCTAD_GENEVA_HariSharan 8
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
DISPARITIES in C-EMISSIONSTotal Historical Emissions to 2000.
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
USA
Russia
Germ.
China UK
Japan
India
S. Afri
ca
Brazil
Indonesia
Countries
Total Historical Emissions to 2000
9.02.2010 UNCTAD_GENEVA_HariSharan 9
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Total C-Emissions to 2050 with a Convergence Target of 1.5 t-CO2/ cap
Total Historical and Future Emissions
to 2050 for C-Convergence
0
20000
40000
60000
80000
100000
120000
140000
USA
Russia
Germ.
China UK
Japan
India
S. Afri
ca
Brazil
Indonesia
Countries
Total Historical and Future Emissions to 2050 under Convergence Regime
9.02.2010 UNCTAD_GENEVA_HariSharan 10
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Centralised Rural Electrificationhas Failed Third World Villages
9.02.2010 UNCTAD_GENEVA_HariSharan 11
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 12
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
A New Energy Paradigm Needed for the Third World:Centralised and Decentralised Sectors should have their own framework to function as equal partners.
The centralised power sector should serve primarily the industrial, infrastructure and urban sectors.
The decentralised power sector, primarily based on renewable sources, should serve the rural and peri-
urban areas.
An level playing field should be provided for the decentralised power sector.
9.02.2010 UNCTAD_GENEVA_HariSharan 13
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
A Systemic Approach is Needed to Make A New Energy Paradigm
Succeed
9.02.2010 UNCTAD_GENEVA_HariSharan 14
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Breaking the viciousvicious cycle of rural poverty with electricity as the driving force for sustainable rural livelihoods
9.02.2010 UNCTAD_GENEVA_HariSharan 15
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
ENERGY
WATER
•Biomass: residues / generation•Bio‐fuels: food vs. fuel•Land use: food, shelter, energy •Energy services:water pumping / rechargingcooking/lighting/drinking water
•Saving GHG emissions
FOOD
9.02.2010 UNCTAD_GENEVA_HariSharan 16
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
An Example:DESI Power’s 100 Village
Employment and Power Programin Araria District, Bihar.
9.02.2010 UNCTAD_GENEVA_HariSharan 17
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
1. 100 Village Program registered under CDM forcarbon trading.
2. Wins WB Development Market Place Award.3. 3 plants financed and functioning in new
villages.4. Loads still inadequate for profitability.5. Biomass supply & management being
stabilised.6. Management Training Centre DESI_MANTRA
set up and functioning.
Phase 1/100 Village EmPower Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 18
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 19
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 20
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 21
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 22
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 23
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 24
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Ipomea Field in Orchha
9.02.2010 UNCTAD_GENEVA_HariSharan 25
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Growing Ipomea and Daincha in Baharbari
9.02.2010 UNCTAD_GENEVA_HariSharan 26
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Growing Daincha in Other Villages
9.02.2010 UNCTAD_GENEVA_HariSharan 27
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 28
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 29
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 30
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 31
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 32
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 33
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
9.02.2010 UNCTAD_GENEVA_HariSharan 34
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
An Example of Energy Service Business under the EmPower Partnership Model
9.02.2010 UNCTAD_GENEVA_HariSharan 35
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Phase 2/100 Village ProgramCOURSE CORRECTION BASED ON PHASE 1 EXPERIENCE
1. 10 to 20 villages depending on funds.2. Business plans finalised for micro-enterprises,
new business units and energy / water services.
3. Biomass growing, supply and processing now a Business Unit.
4. Diversifying engine supply and support services underway.
9.02.2010 UNCTAD_GENEVA_HariSharan 36
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Phase 2/100 Village Program (continued)
5. Won Tech Museum - Accenture Technology Innovation Award ($50’000).
6. Agreement with SBI for direct bank loans to villagers for micro enterprises and businesses.
7. Raising investment finance: several alternatives packages under discussion.
8. Village data collection and project planning underway.
Implementation Plans for Phase 2 Ready
9.02.2010 UNCTAD_GENEVA_HariSharan 37
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
-
10
20
30
40
50
60
70
- 4 8 12Operational Years
Plant Load Factor (%)
BASIS for ACHIEVING PROFITABILTY
9.02.2010 UNCTAD_GENEVA_HariSharan 38
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
1.Dividendcanstarttobepaidafterthe4thyear. 2. Equityinvestorscanexitaftera minimuperiod of 6 years with an agreed p3.Thetotalcumulativeamountofdividend+retainedearningsover10 yearscan bebetween 180 - 220% % of the equ
9.02.2010 UNCTAD_GENEVA_HariSharan 39
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Forms of Investment1. Local Commitment Investment: Villagers and local
entrepreneurs to ensure local participation and commitment.
2. Carbon Footprint Investment in exchange for CERs to compensate for Investor’s GHG emissions.
3. Socially Responsible Investment: Long term equity or loan with a fair return on financial, social and ecological parameters.
4. Up-Front Carbon Investment: Paying for a part of the anticipated CERs as an advance to built the project.
5. Commercial loans with or without social and ecological bonus.
9.02.2010 UNCTAD_GENEVA_HariSharan 40
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
50
36
33
119
7.5
20
92
169000
81.1
89%
Bank Loan Lacs
External Equity Lcs CERs: Estimated generation over 12 yearstCO2
Income from CERs % Equity
Investment in Power Plants and BiomassProcessing. Lacs
Income from CERs, Lacs
Investment in Capacity Building, Training andRunning Cluster Centres for 12 years, Lacs
Investment in Business Units, Lacs
Total Investment Lacs
Subsidy.Lacs
9.02.2010 UNCTAD_GENEVA_HariSharan 41
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
To
SUMMARISE
9.02.2010 UNCTAD_GENEVA_HariSharan 42
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Innovations Make The EmPower Partnership Program Successful
1. Making Complex RETs reliable for villages and manageable by local staff.
2. Integrating electricity supply and creating local demand: both profitable.
3. Creating non-agricltural jobs in micro-enterprises, businesses, and energy and water services.
4. Building partnerships with villagers: organisations, infrastructure, capacity building and training, with focus on women (DESI MANTRA).
5. Cluster Centres: continuing extension services and performance audit.
6. New financing mechanisms: integrating carbon credits and making non-government village projects bankable.
9.02.2010 UNCTAD_GENEVA_HariSharan 43
D.E.S.I Power™
Poverty, Energy and Climate Change:Employment and Power Partnership Program
Thank you