REPORT On Learning & Sharing WorkshopMr. Anjannapa –MPPL Renewable Energies Pvt. Ltd.,...

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

Proceedings Stakeholder Workshop, 23

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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



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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



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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



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



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



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



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



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



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



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



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

[email protected]

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

REPORT On Learning & Sharing WorkshopMr. Anjannapa –MPPL Renewable Energies Pvt. Ltd.,...

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