Docstoc

Slide 1 - Bureau Of Energy Efficiency

Document Sample
Slide 1 - Bureau Of Energy Efficiency Powered By Docstoc
					   Promoting Energy Efficiency
     and Renewable Energy in
    Selected MSME Clusters in
              India

        GEF project outline
Dolf Gielen, Tony Levissianos and Sujit Das
         New Delhi, 18 November 2009

                                        1
• GEF funded project, USD 7 M (5 M
  demonstration/deployment, 2 M capacity building)
• Currently in the project preparation stage
• GEF submission deadline February 2010
• 12 clusters selected
   –   3 iron casting foundries
   –   2 brass/aluminium casting
   –   2 hand tools
   –   3 ceramics
   –   1 dairy
   –   1 sugar cane processing (under consideration)
                     Jalandhar
                                  Jagadhri
       Nagaur                    Kanisari
       Indore                         Khurja




        Gujarat
        Dairy
Jamnagar
          Morbi
         Thangarh




                    Belgaum
                Coimbatore




                                               3
                   Goals
• Capacity building
• Demonstration of new technologies
• A self-sustaining mechanism for energy
  efficiency and renewable energy in SME
  clusters
• Accelerated uptake of energy efficiency and
  renewable energy
• Reduced fossil fuel dependence, enhanced
  competitiveness, poverty alleviation
• Reduction of CO2 emissions
                Approach
• Starting point energy data collected by BEE
  and UNIDO
• TERI is collecting additional data
• Indicator/benchmarking system
• Technology option assessment
• Project financing instruments
• Assessment of policy framework
Technology Potentials
        Data Availability
•   Iron casting
•   Brass/aluminium casting
•   Hand tools
•   Ceramics
•   Dairy



                              7
    Insights so far (11
         clusters)
• Total primary energy use approx. 8 PJ/yr
  (0.3 Mtcoe/yr)
• Efficiency improvement potential 10-30%
• Solar attractive for dairy, perhaps some
  bioenergy opportunties
• CO2 reduction potential 0.1 Mt/yr
• Average payback period 3 years
                 Belgaum Iron Casting
Typically large spread for smaller units. Large units
                  are more efficient

                                                     Belgaum

                       18
                       16
   Energy use [GJ/t]




                       14
                       12
                       10
                        8
                        6
                        4
                        2
                        0
                            0   100   200   300   400     500      600        700   800   900   1000
                                              Production capacity [t/month]
                  Jagadhri Brass
                            Jagadhri Brass

         40
         35
         30
         25
[GJ/t]




         20
         15
         10
         5
         0
              0   20   40     60      80       100   120   140   160
                                   [t/month]

                                                                       10
                  Jalandhar Hand Tools
                          Jalandhar Forging

         10
          9
          8
          7
          6
[GJ/t]




          5
          4
          3
          2
          1
          0
              0      50      100             150   200   250
                                   [kg/hr]



                                                               11
                      Morbi Ceramics
                                                                                       Savings
Unit   Technology           Product           Production   Fuel     Energy intensity   potential
                                                 [t/yr]                 [GJ/t]           [%]
 1      DD Kiln        Electric Insulators       300       Coal          20.5             30
 2     Tunnel Kiln         Crockery             1750       Diesel         8.8             30
 3     Tunnel Kiln        Bone China            1750       Diesel        16.0             17
 4     Tunnel Kiln     Electric Insulators      2160       Diesel         7.2             5
 5     Shuttle Kiln         Artware               0        Diesel
 6     Tunnel Kiln         Crockery             1800       Diesel         3.8             30
 7     Shuttle Kiln   Scientific instrument      144       Diesel        14.7             26
 8     Tunnel Kiln        Table ware            2040       Diesel         5.0             30
 9     Roller Kiln         Wall tiles           36000      Coal           3.1             7
10     Tunnel Kiln      Sanitary wares          2000       Diesel         5.6             20
11     Roller Kiln            Tiles             16000      Coal           2.3             20
12     Tunnel Kiln      Sanitary wares          2746       Diesel         6.4             20
13     Tunnel Kiln      Sanitary wares          8640       Diesel         4.4
14     Tunnel Kiln      Sanitary wares          1200       Coal          19.0
15     Tunnel Kiln         Insulators            550       Diesel         8.0             20


                                                                                                   12
      Khurja Ceramics
                     Energy
                                Savings
Factory             intensity
                                potential
                      [GJ/t]

1 Insulators         20.0        -30%       Downdraft kiln

2 Crockery            5.4        -30%       Tunnel kiln

3 Bone China         15.9        -17%       Tunnel kiln

4Insulators           4.3        -15%       Tunnel kiln

                                            Shuttle kiln (being replaced
5 Ceramics           22.1
                                            by tunnel kiln)

6 Crockery            5.4        -30%       Tunnel kiln

7 Porcelain Works    10.5        -23%       Shuttle kiln

8 Crockery            5.3        -30%       Tunnel kiln


                                                                           13
                                    Dairy Gujarat
                          10
                          9
Electricity savings [%]




                          8
                          7
                          6
                          5
                          4
                          3
                          2
                          1
                          0
                               0   10   20         30           40   50   60
                                             Payback [Months]



                                                                               14
      Identified options
• Good housekeeping
• Better furnace process control (burners,
  waste heat recovery, excess air)
• Electricity: efficient lighting, motor systems,
  compressor replacement
• Solar heating/absorption cooling
• Biomass for process heat ?

                                                    15
Financing
             GEF Criteria
• Factor 3-4 leverage
• Approximately USD 20-25 million needed (100
  Crore)
• Co-financing to meet GEF criteria can be in
  many forms
  – Government subsidy
  – Linkage to bank credit line (existing or new)
• Linking with UNIDO cluster development
  project considered (Funded by DIPP, Belgaum
  and Coimbatore)
• Goal is industry investment/co-financing, but
  upfront guarantees are unlikely
         Identified Investment
                  Opportunities
             USD 30-35 mln (11
•   Traditional energy
    efficiency: 65% clusters)          Hand tools
                                          18%
    – Electricity savings (VFD,   Non-ferrous
      compressors, lighting)       foundries                 Iron
                                      1%                  foundries
    – New furnaces/furnace                                  43%
      measurement equipment            Dairy
                                       19%
• Fuel switching related:
  20% (gas)
                                               Ceramics
• New technology: 15%                            19%
    – Solar heating
    – Solar cooling
   Existing Co-Financing
          Options
• Dedicated credit lines/soft loans/guaranteed
  loans
  –   SIDBI credit lines (WB/JICA)
  –   IREDA
  –   SME credit lines of commercial and national banks
  –   A letter is needed that expresses willingness to
      finance identified projects at conditions that are
      attractive for industry
• Subsidy schemes (DIPP, MSME, MNRE)
   What to do with USD 5 M
    GEF investment grant?
• Budget is small for a dedicated instrument
• Could be used to ease co-funding
  – Grant for sweetening loans
  – Add to SIDBI/WB risk guarantee scheme
  – Stand-alone revolving fund
  – Equity/service company ?
      A revolving fund ?
• Positive experience with past UNIDO project
  (China) and in Thailand
  – Is the business environment similar in India?
  – IREDA biomass briquetting RF resulted in high loan
    losses
• Generates co-funding (at least USD 5 million over
  4 years if pay-back is 2 years)
• Generates a project funding source for BEE
• Can cover risk & provide low interest loans
• Should be limited to new technology
• Bank interest needed to manage trust fund
 Thank you
  for your
 attention
d.gielen@unido.org
   www.unido.org
                     22

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:112
posted:5/10/2010
language:English
pages:22