Building a Sustainable Energy Future for India

1. Building a Sustainable Energy Future for India Policy options for sustainable thermal energy for the domestic & unorganized industry sector Svati Bhogle TIDE & SIPL 8 - 9 February 2010

2. Energy policy – unorganized sector • No serious mention of thermal energy policy in the programmes of ministries dealing with energy intensive informal industries - ministries of textiles, KVIC, food processing • Access to sustainable energy is not understood at the govt. level • However, govt. quick to recommend subsidies for enterprise driven initiatives, • Examples are DoS, Coconut Board, GMP in herbal medicine

3. Policy – domestic energy MNRE accepts ownership for providing access to clean energy for cooking with biomass fuels Mixed response to the NPIC that was discontinued about 10 years ago but several lessons and experiences to build on Integrate energy policy mentions access to sustainable fuel within 1 km from the kitchen but no further progress MNRE accepts the need to support new improved stoves and non govt. driven dissemination mechanisms

4. Assumptions for policy dialogue Context: Adequate, affordable, sustainable biomass energy access for all who require it. Govt. to be stimulator / enabler and not implementer Access to renewable energy access, improved stoves, dryers, kilns etc. through local initiatives and enterprises Policies designed for enterprise & consumer friendly market mechanisms Sustainable energy means a balance between biomass generation and consumption

5. Govt. as enabler Creation of reliable data and databases on energy need, availability, products, performance, etc. and its availability in public domain must be the role of the govt. Studies / surveys that establish user need and resource matching both for domestic and informal industry to be supported. The starting point of TIDE/ SIPL interventions have always been data creation and not data access

6. Govt. as enabler Creation of technicians in biomass energy equipment, sustainable energy plantations through short term training programmes / certificate courses in small towns Modestly priced energy labs for fuel quality & emission testing, so that performance testing becomes a routine habit and consumers demand quality. Could also develop into on site service centres Customer care / help lines for biomass energy products after sizeable number of domestic and industrial stoves in operation.

7. Innovations that need support • Development of easy to use loose biomass collection, compaction & aggregation tools & equipment • Design & promotion of low cost sheds for storage of biomass. Could develop into loose biomass depots like firewood depots • Support R & D efforts for clean & efficient burning of loose or loosely compacted biomass in stoves, dryers, kilns

8. Innovations that need support Support development of ancillary equipment for obtaining a range of good quality prepared biomass fuels for varied applications – household to foundry Develop quality standards for prepared biomass fuels Support research into hybrid renewable energy systems – e.g combination of solar & biomass for water heating, drying of agri produce etc.

9. Consumer friendly market mechanisms Govt. to only stimulate the market and remove barriers to enterprise. Good, targeted, local language, public interest campaigns in energy conservation Examples from health, education, women’s welfare like pulse polio, prevention of child marriages etc. Poster design / slogan design competitions at the grass root. The same to be made available for public use. Awareness about climate change, its adaptation, mitigation

10. Consumer friendly market mechanisms Incentivise & encourage group discussion on household energy in self help group meetings by sponsoring tea / snacks and develop a publication based on these discussion Similarly incentivise discussions on the theme of thermal energy in industry associations and capture the discussions Develop & support awareness programmes on ‘role of financial institutions in climate change adaptation & mitigation’

11. Innovative financing schemes • Financing schemes aimed at reducing financial barriers for all elements in the supply chain • VAT exempt status for household / industrial stoves & prepared fuel above specified performance standards • Banks to develop attractive loan products for consumers of biomass energy products • Low interest rate working capital loans for manufacturers and distributors

12. Biomass energy and MFIs • MFIs must become financial instruments for sustainable biomass energy access at low interest rates • MFIs currently unwilling and unable to extend facilities beyond their comfort level of women’s group lending. • Micro finance must become available to individuals and to men for RE / EE products. • There is significant idle capacity in MFI grass root operation.

13. Sustainable energy plantations Sustainable energy plantations managed by women’s groups would offer energy security for homes where there are no agro residues However there are long term land lease issues and initial access to irrigation which need to be sorted out. There are examples of NGOs / CBOs leasing land with prosopis cultivation and these are harvested sustainably, earning good income.

14. Frominnovation to enterprise Beyond innovation, biomass energy is an unglamourous grass root business. No great role for management graduates but biomass energy must capture the imagination of the grass root entrepreneur. Easy to utilize existing infrastructure to create new business opportunities with global environmental impact Biomass energy access has potential to create rural livelihoods in fuel preparation & trade, commission on sales, equipment assembly & delivery mechanisms, trade in components & servicing for men and women

15. Evolving public – private – civil society – academia partnerships • Large scale impact can be achieved by bringing together the collective strengths of public private civil society academia partnerships • Each sector to work in its area of strength • Govt. institutions to evolve an enabling policy and participate financially • Private organizations to be engaged in implementation in partnership with civil society based organizations • Govt. to support NGOs / CBOs in awareness creation and grass root work • Academic institutions to be engaged in technology adaptation, developing standards, monitoring & evaluation

16. Policy recommendations • Regulate of the firewood / loose biomass trade • Ensure that loose biomass is officially traded • Enforce biomass fuel standards for prepared fuel to minimize adulteration • Ban adding water to firewood / biomass at depots, during transit and just before sale

17. Thank you for listening