Energy Security at BOP
- A Farmer Centric Social Entrepreneurship

 

Agriculture sector contributes nearly 20% of India’s GDP and 11% of total exports, provides employment to more than 55% of the country’s workforce and livelihood security to about 650 million people. The country is a net exporter of agricultural products for many years now. The remarkable progress in agriculture has also enabled the country to be food secure. All these underscore the achievement and crucial role of agriculture in the overall economic and social well being of the country.

On the other hand, the livestock sector has a very important role in Indian farming system. They not only provide milk and meat but also provide farm yard manures, wool, egg etc. Besides, they are extensively used in agriculture for draught purpose as well for transport purposes particularly in rural area. The increase in cattle population, particularly in poultry population, clearly justify its viability

Though the statistical data paints the glorified picture of Indian agriculture sector but majority of farmers are still seen as poor. The associated risk of agriculture due to uncertainties are growing faster than the agriculture return. Thus, more than the productivity, profitability now- a-days has become the only evaluation criteria for success.

Energy Availability and Sinking Profitability:

India, in the last 20 years has addressed almost all issues, from policy change to capacity building of farmers; from advance research to IPR of indigenous species to ensure productivity/profitability enhancement, but energy security issue had never taken central stage. Dr Nawab Ali, DDG(Engg.), ICAR has shown a strong relation between energy availability and productivity (as shown in the table).

Even though short term people friendly policies, such as subsidized/free electricity for farmers, control over diesel price etc has reduced the financial burden of farmers to some extent, it has always reduced the urgency of promotion/ adoption of Renewable Energy Technologies (RET) in agriculture sector.

Though both Central and State Govternments have tried to promote RETs by providing capital subsidy from MNRE - soft loan through IREDA/ Nationalized Bank and several exemptions / reductions on duties / taxes but due to subcritical number of successful pilot demonstration, we have hardly harvested any potential of power generation from RETs to help farmer by ensuring access to reliable and affordable energy.

Source: Directorate of Economics & Statistics, Govt. of India

Source: Department of Animal Husbandry, Daring & Fisheries, Govt. of India

Farm Waste as Source of Energy: The current global primary energy need is 10 billion TOE / year, whereas solar energy that is biologically absorbed in biomass is approx 150 billion TOE /year. India has 141 million hectares of arable land and agricultural/horticultural output is close to 800 million tons, which generates nearly 700 million tons of waste. Hence, even after deducting approximately 450 million tons of waste which is used as fodder, 250 million tons of surplus agricultural waste could be used for Biomass Power Generation. As per Department of Animal Husbandry, Govt. of India, dairy population increases from 307 million (1992 census) to 489 million (2003 census). As per the national master plan for development of Waste-to-Energy, Ministry of New and Renewable Energy (MNRE) estimates that the total power generation potential from waste is 864 MW.

On the other hand 70 million hectares of forest land result in waste can bring more solution to Indian farmer if used properly. Assuming forest stock of 100 cum/hectare and "dead & fallen" waste generation of 5% per annum we can have an annual generation of forestry waste of 350 million cum (280 million MT). Though there are limited or no institutional mechanisms for collecting this forest waste and therefore only a small fraction of this is put to productive use (household cooking fuel or fuel wood). Assuming annual growth of 3 cum/year, there would be 210 million cum (or 160 million MT) annual growth in "forest stocks". There could be some institutional mechanisms for selective & sustainable utilization of some of the growth in "forest stocks" for Biomass Power generation, particularly in tribal areas.

Much Talked Model Tested in Bundelkhand: Since the last one decade, energy professionals across India, are trying to demonstrate the institutional and financial viability of small RET based power plant and also trying to link it with productive load to ensure local value addition so as to boost up the intra village economy. Last three years, Development Alternatives has started work with community to demonstrate community owned, community managed off-grid Biomass Gasifier based power plant. 14 community members selected through open gramshabha meeting, including 4 women members, to form the management body, called Village Energy Committee (VEC). It took us over 2 years, to develop the ‘WE’ feeling among the entire community. A homogeneous rule has evolved as an outcome of series of small group discussion, monthly gramshabha meeting and 2 group exposure visits. For almost the last one year Radhapura village of Pichor block of Shivpuri district (MP) is generating energy and consuming it for local value creation. Out of 87 household 60 household has taken paid-domestic connection. As a connection fee of Rs. 500 per family has been collected by community and kept aside into VEC’s bank account as a security deposit. To ensure financial viability VEC has introduced consumption based tariff model as shown in the table. The tariff model not only motivates the community to adopt CFL and other energy efficient electrical implements but also reduce the energy expenditure for non productive loads. It also generate basic minimum revenue, as there is hardly any seasonal load fluctuation, necessary for purchasing biomass, carry out periodic maintenance. The revenue, earned against domestic supply is not enough to pay operator’s salary of Rs. 1,800 per month. Realizing this, VEC decided to collect 10 rupees from each household towards providing for street lights. To optimize the expenditure and also to ensure consumer’s satisfaction VEC agreed to provide minimum 3 hrs of supply (in the evening) for at least 25 days per month.

This initiative has developed and introduced a delivery mechanism to provide irrigation services to farmers. In the last Rabi season (Nov 09 to March 10), VEC has supplied energy to four farmers - those who able to purchase two HP mono-block AC pump and also delivered irrigation services to 14 farmers who could not manage the initial capital. Considering cost of diesel based irrigation as a baseline, VEC has developed a specific tariff structure as shown in above table. For the ease of management and also to meet the specific crop wise irrigation need, VEC has promised to provide energy/energy services for at least 4 hrs/day and at least five to six such services per crop to maximize crop productivity. As compared to diesel based irrigation through 5 HP mono-block pump, which cost approx Rs. 90 to Rs 120 per Ac, RET based irrigation needs approx Rs. 60 to Rs. 80 per Ac.

Based on the last one year’s experience we have learned that agriculture consumes approx 54% generated energy where as enter-prise and domestic consumption is 28% and 18% respectively.

Presently community institution has developed to such levels that rolling back possibility is almost zero. But the main challenge of the initiative is to demonstrate financial viability of the model particularly in the lean (Zaid season) or no agriculture season. Developing and managing more productive load, is the only area where the community is mainly focusing and planning to set-up enterprise to ensure post harvest value addition.

Ensured supply of biomass, to power plant, from nearby villages, is another issue, as dependency on natural vegetation (particularly of high generating shrub spices) is ever increasing to meet the domestic and livelihoods demand. To address this issue the VEC has taken major plantation initiative. VEC has sensitized local community and has promoted fuel forestry by supplying Leucaena Leucocephala (fast re-generating shrubs) seed and sown in 10 Ha land.

Replication Strategy: There is every possibility that under favorable agro-climatic condition, any village can generate enough energy demand, round the year to ensure affordable irrigation and post harvesting value added activities. The proposed replication strategy envisaged bigger role for progressive farmers as a potential investor of such social enterprise. These farmers (or CIG) will also become the major consumer of energy/energy service to enhance productivity. On the other hand medium/small farmers and potential entrepreneurs will act as major consumer energy to ensure financial viability of this proposed enterprise. The poorest of the poor and the landless, in this development process will carry out energy plantation (mainly through waste land development initiatives) and will ensure un-interrupted supply of biomass to ensure their livelihoods. q

Manoj Mahata
and Santosh Gupta
mmahata@devalt.org,
skgupta@devalt.org



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