Module Development Workshop On
Climate Change Mitigation Projects In the Decentralised Energy Sector
Hotel Pondicherry Ashok
December 2-3, 1999

A workshop on “Climate Change Mitigation Projects in the Decentralised Energy Sector” was organised by Development Alternatives in association with Department of Earth Sciences, Pondicherry University on 2nd and 3rd December, 1999, at Hotel Pondicherry Ashok.  This workshop was part of Climate Change Outreach and Awareness (CCOA) programme of USAID, being carried out by Development Alternatives, New Delhi.  A few other organisations in India namely CII, IIM Ahmedabad, FICCI and TERI are also carrying out this programme.  The Climate Change Outreach Programme seeks to increase the level of awareness and institutional capacity within key Indian institutions and sectors vis a vis  Climate Change issues.

The focus of the workshop was to assess the role of decentralised energy sources in meeting the twin objective of addressing the development needs of small rural communities and mitigating the carbon dioxide emissions at the same time.  This potential of the renewables to meet the growing energy demand of the world poor communities at substantially lower level of emissions is being termed as the ‘win-win’ potential of renewables.

The workshop was represented by representatives of companies working in the renewable energy field, some of the funding agencies, a few NGOs and the local host i.e. the Department of Earth Sciences, Pondicherry University.  The local convenor, Dr. M. S. Pandian welcomed the participants in the workshop.  In his welcome address he highlighted the important role of renewable energy sources in view of the limited stocks of conventional fossil fuels.

Dr. Kalipada Chatterjee, Development Alternatives, in his introductory remarks gave a brief account of the human activities leading to climate change, the findings of the IPCC, the likely impacts of climate change and various mechanisms to mitigate climate change.  He also pointed out that the objective of the workshop was to network with the Indian business community and Funding Sources and to provide a platform for direct Interaction of the two players.  He further mentioned that this workshop would lead to capacity building in design and implementation of Climate Change Mitigation Projects (CCMPs) and also address to the immediate objective of developing a portfolio of CCMPs in the Decentralised Energy Sector in India.

Dr. S. K. Mishra, Winrock International India, made a presentation on the role of decentralized energy sources in mitigating the climate change and the programmes being carried out in the country for the promotion of decentralized energy.  He informed that India has earned the distinction of being the only country in the world to have an exclusive ministry for renewable energy.  Various agencies in the sectors MNC’s, private sector, public sector, industrial associations, FI’s/Banks, NGO’s, state government and international organisations have been taking active or supporting role in making the rural energy programme a success.  He mentioned that India has got a vast potential of renewable sources of energy but only a little has been harrnessed so far.  He also mentioned that for renewable energy programme to play a major role the need of the hour is to make renewable energy market based rather than subsudy based and focus on potential areas for commercialisation.  He also suggested that to make these programmes effective different strategies should be adopted for differenty technologies.

Ms. Kavita Sinha, USAID, made a presentation on the Climate Change Mitigation programme of the USAID.  She mentioned that the largest contributor to India’s GHG emissions is energy sector and the demand for electricity will double during the next decade.  She also endordorsed the view that the scope for improving energy efficiency and introducing decentralized energy systems for boosting the economy and reducing GHG emissions is tremendous.

Ms. Sinha also made a mention of various Climate Change Mitigation Projects like Trade in Environmental Services and Technologies/Clean Technology Initiative, Technology Development Commercialization Fund, Greenhouse Gas Pollution Prevention project (GEP) and Energy Conservation and Commercialization, the objectives of these programmes and total funding available under these programme.

Mr. John Ryan, Hagler Bailly Services Inc., USA, briefed the participants of various international funds available for Climate Change Mitigation Projects.  He mentioned of broadly three categories of the funds available viz. Environmentally Targetted financing mechanisms, Early Action funding sources, and Clean Development  Mechanism.  He elucidated on how to develop a climate change project and how to get the finances for the project. 

Mr. Ryan mentioned that ET, Early Action and CDM are designed to recognise, reward and bring to market the environmental and sustainability benefits of well structured climate friendly technology applications.  Further the iInternational climate change funding mechanisms are looking for a sound approach to GHG reductions, implemented by management teams with a successful track record delivering “bankable” financial and technical structures.  He was optimistic that CDM will come, the question is not if but when and how.

Dr. Kalipada Chatterjee, made a presentation on how to develop sustainable development indicators (SDIs) for the CCMPs.  He mentioned of three processes viz. A participatory process, a careful scrutiny of the project proposal and use of a ready reckoner, to find out indicators and presented a few case study also.  He also suggested that the SDIs so developed must be user friendly and be driven by host country’s social, environment, development and  technological priorities and strategies.  He further stressed that the SDIs should be simple but robust and not many in number.

A number of projects in the decentalized energy sector were presented.  The workshop being a regional one, the companies represented were mainly from the southern states.  The companies who came up with projects were Aban Energies Ltd., Chennai, Kirlosker Electric Company Ltd, Banglore, Solaris Systems Pvt. Ltd., Cochin, Polyene Film Industries Ltd., Hyderabad, Shri Shakti Alternatives Energy Ltd., Hyderabad, Udhaya Semiconductors Ltd., Chennai, Bhoruka Power Corporation Ltd., Banglore and DESI Power India.

A number of good projects were recieved in solar, biomass co-generation, wind and mini-hydel sector.  The projects presented were to take care of rural electrification and to cater the needs of small scale enterprises.  The annexure attached gives a brief ready reference of the projects presented.  Renewable sources of energy are considered to be zero emission fuels, thus promoting these projects means reduction of carbon dioxide emission which would have otherwise happened due to the use of conventional fossil fuels. 

The project developers were very enthusiastic about the idea of getting funds under CCMPs.  They, however, had certain queries and doubts regarding the mechanisms of funding.  Many of their queries were resolved through discussions during the deliberations of the workshop as well as through one-to-one meeting of DA and HB with project developers during the breaks and after the sessions were over.

The workshop concluded with a discussion on follow-up action and Dr. Chatterjee thanking the participants for their interest in making the event a sucess.  He requested the participants to show the same kind of cooperation in future communications also so as to help expedite the follow-up actions.

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