Energy innovations: a focus on

clean technologies for livelihood

generation in India

Manish Anand

TERI, New Delhi

Asia LEDS Forum 2014: Development through

LEDS and Green Growth

Yogyakarta, Indonesia

November 11-13, 2014,

Rural Energy Poverty in Asia

Region

Population without electricity

millions

Electrification rate

%

Urbanelectrification

rate%

Ruralelectrification

rate%

China 3 99.8 100.0 99.6

India 306 75.3 93.9 66.9

Southeast Asia 134 77.6 90.5 67.2

Brunei Darussalam 0 100 100 99

Cambodia 9 34 97 18

Indonesia 66 73 85 60

Laos 1 78 93 70

Malaysia 0 100 100 99

Myanmar 25 49 89 29

Philippines 28 70 89 52

Singapore 0 100 100 100

Thailand 1 99 100 99

Vietnam 4 96 100 94

Rest of developing Asia 172 61.4 81.9 51.7

Bangladesh 61 60 90 48

DPR Korea 18 26 36 11

Mongolia 0 88 98 67

Nepal 7 76 97 72

Pakistan 56 69 88 57

Sri Lanka 3 85 96 84

Other Asia 27 32 59 22

Asia 615 83.1 95.0 74.9

Electricity access in Asia in 2011

SOURCE: IEA, World Energy Outlook 2013

• Since 2000, around

2/3rd of the people gaining

access to electricity have

been in urban areas and

the population without

electricity access has

become more

concentrated in rural

areas.

• More than 8 out of 10

people without modern

energy access live in rural

areas

• India has < 1/5th of

world’s population but has

~ 40% of world’s

population without access

to electricity

Green growth and inclusive development in rural

areas (1/2)

• Decentralized solutions and clean energy technologies

have the potential to reduce energy imports, improve the

stability of electricity supply, save costs, save climate

(Martinot et al. 2002, Chaure et al. 2004, Verma & Cisse 2004,

ESCAP 2005).

• Few studies have empirically established the potential of

clean energy as a driver of poverty alleviation in

developing countries (Meadows et al. 2003, Toman and

Jemelkova 2003, Martinot et al. 2002, Cabraal et al. 2005).

• Clean energy based technological applications and

innovations can play an enabling role in livelihood

enhancement in non-electrified rural areas.

• Key challenges for dissemination of appropriate RE system:

– Effectiveness (viability, reliability, applicability) of offered technology

– Emphasis on technology demonstration or target oriented programmes

like Remote Village Electrification

– Programmes implemented on the basis of broad administrative criteria,

such as providing access to electricity to rural people, rather than

focusing on more specific outcomes, such as increasing user’s

capacities to generate income or other benefits

• Limited efforts on customising a set of new and existing technologies (a

combination of solar/ wind/ biomass/ battery storage/ power interface

etc.) specifically for livelihood activities for improving reliability and

hence uptake of electricity services as well as enhance their cost-

effectiveness.

• One of the international studies has shared this perspective in the

context of limited success of renewable energy programmes (Urmee &

Harries 2009).

Green growth and inclusive development in rural

areas (2/2)

Clean energy innovation for livelihood generation in

India - Solar Multi-Utility (SMU) Platform (1/2)

• A multi-utility platform that utilizes the locally available solar energy

resources to generate electricity.

• The generated electricity would then be used for variety of applications

such as charging lanterns, powering other appliances such as computer,

mobile phones, water purifier etc.

• SMU is located near the energy utilization points in a village to provide

electricity services as per the need of the community.

• Using a multidisciplinary and participative

perspective the research investigates the

opportunities and challenges for social as well

as technological innovations in the development

and deployment of clean energy based

technological applications in rural India, and how

can such innovations contribute to the

achievement of important social goals for the

population.

Clean energy innovation for livelihood generation in

India - Solar Multi-Utility (SMU) Platform (2/2)

Contextualizing innovation

• Innovation understood as the process of improving

or developing clean energy technologies,

technological systems and their impact on specific

livelihood related end-uses

• Innovation in the entire value chain of generation,

implementation and utilization of renewable /clean

technologies

• Technology not only designed and integrated

adequately but also delivered through an effective

service delivery model with an active community

involvement

Dimensions of innovation:

• Use of latest technological and scientific know-how in designing, developing, customising and testing technologies to meet specific end-use applications of rural communities in reliable and cost-effective manner

• How communities associate themselves with the newly introduced technologies and accept/ enhance the uptake of the energy services for their socio-economic benefits and transition to sustainable developmental practices.

Technical dimension

Societal dimension

Institutional framework

Methodology for Technology

Customization

• Baseline survey

Energy demand for livelihood generation

• Market assessment

Available appliances for required livelihood

• Optimum energy requirement

• Demand and supply optimization

Customized solar (hybrid) energy based

system

Methodology for impact assessment

Base-line survey

with measurable

indicators

Clean energy based

technology

intervention

Compare Base-line

with measurable

indicators

Livelihood generation activities

• Battery charging, Mobile phone charging

• Turmeric grinding, Chilli/spice grinding

• Bamboo slicing/slivering

• Honey skimming

• Silkworm reeling,

• Jaggery production

• ICT applications

Installation of SMU

Remote monitoring mechanism for performance

assessment and monitoring of the SMU

Capacity building measures and the outcomes

Introductory training to Implementation Partner and SHGs on

Objective of SMU Fee for service model-advantages and disadvantages Roles and responsibilities of different partnersLegal

frameworks and agreement required

Trained SHGs on

How to collect revenues

How to maintain revenue record

How to document and report the

system fault if occurred

Trained Impl. Partner on

How to monitor the performance of entrepreneur

How to produce monthly report on SMU

Impl. Partner and SHGs unaware of

Benefits of SMU

Fee-for service model

revenue collection mechanism

record keeping and reporting method

Before training and capacity building Training and Capacity building measures After training and capacity building

Training to Impl. partner and Entrepreneur (through

sensitization workshop) on - - -

Record keeping and documentation; Monitoring, verification and

reporting,

Development of record keeping and monitoring system

Orientation cum exposure programme to Impl. partner and SHGs on

Basic operation of SMU

Advantages and challenges of SMU

Demonstration of different component of SMU

Explaining instruction manualsTraining programme to Impl. partner and SHGs on O&M of SMU

Demonstration on assembling of lantern

Demonstration of complete operation and maintenance of SMU as

well as of the remote monitoring system

Understanding the type of fault that can occurred in SMU and how

to address that

Training and Capacity building measures in Institutional issues

Training and Capacity building measures on Technological issues

Trained SHGs on

Basic Know-how of different

components of SMU

Basic repair and maintenance of

SMU

Trained Impl. Partner on

Basic Know-how of SMU and its

various components

Impl. Partner and SHGs unexposed to

Type of services that can be provided

from SMU

How to use solar systems etc

How to operate and maintain solar

systems

Training and Capacity building measures on Entrepreneurial issues

Interaction with Impl. partner and SHGs on

Different business models which can be adopted for expanding the business

Additional services which can be provided from the SMU

Impl. partner and SHGs are unexposed to

Different possible livelihood generating applications/benefits of SMU

Different business models

SHGs exploring other energy

options/applications which can be catered

through SMU

Major processes involved

Identification/selection of site

Selection of implementation partner

Identification of SHGs

Market survey of

the available

appliances

Finalization of configuration of

SMU and development of revenue

model

Scoping study for setting up of SMU

Performance assessment of SMU

through remote monitoring system

Setting up of SMU

Training and

capacity building

Findings and way forward

Developing innovative technology packages

through continuous technology customization

and up-gradation

Testing and assessing the performance of the

these packages

Piloting the technology packages

Need assessment for

high value, high

income generating

activities

Framework for up-scaling

Source: Jolly 2010

• There can be no

systematic tools for

understanding up-

scaling

• The process of up-

scaling takes place at

multiple dimensions

and an interdisciplinary

approach is key to its

understanding

• Relevant research

field - system of

innovation, strategic

management, social

entrepreneurship,

development studies,

and bottom of pyramid

literature.

Learning's on innovation and up-scaling (1/2)

• The purpose of SMU is well accepted amongst the communities

and the preliminary assessment study indicates a huge potential

of up-scaling such SMU.

• Innovation is extremely necessary for up-scaling - developing

innovative technology packages based on the requirements and

demands of the local communities through continuous technology

development and customization in most efficient and cost effective

manner.

• Up-scaling for enterprises in the literature and practice as well has

been focused in the past on few dimensions, mostly quantitative

• Up-scaling is primarily driven by the vision, mission and

expectations of the enterprises

• Value chain upscaling i.e. moving up the value chain for

enterprises requires a balancing act.

Learning's on innovation and up-scaling (2/2)

• Up-scaling only takes place successfully when the enterprises are

financially sustainable; developing a viable model requires learning in the

form of double loop learning where enterprises need to develop model

which are financially self sustainable and not dependent on external

grants and subsidies.

• Finance plays a critical role but the important point is that it must fit with

the motivation, expectations, style of working and business model of the

enterprise.

• Human resources constraints during scaling up hinders expansion of

social enterprises beyond a pilot stage

• Enterprises need to form partnerships with commercialization partners,

distribution networks and get noticed, enhancing embeddedness into

local cultural environment, certifications from international bodies, media

exposure through interviews and knowledge dissemination activities and

awards from professional bodies has helped gain legitimacy

Up-scaling scan for policy makers

Policy AssignmentUp scaling

specific innovation form

niches to mainstream

Target situation

Current situation

GapIntervention

strategy

Subsidies Fiscal incentivesRegulationCovenantsPurchase policyTaxesPlatforms

Analysis Strategy Policy instruments

New policy instruments

Source: ISandick & Oostra: Upscaling Energy Related Innovations

Thank you

Contact: manand@teri.res.in

Website: www.teriin.org

Acknowledgment

Developed under the TERI research project:

“Innovating to bring clean energy for livelihood generation in India”