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ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

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Page 1: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA

Executing agency: Tea Board of IndiaImplementing agency: TIDE

GEF agency: UNDP

Page 2: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

THE TEA INDUSTRY IN SOUTH INDIA

250 tea factoriesAnnual production 233 m

kgs / yrCost of energy is 40% of the manufacturing cost

Page 3: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

PROJECT OBJECTIVE

To reduce energy consumption from tea processing units in South India, thereby restricting Greenhouse Gases emissions

To remove barriers to energy conservation and energy efficiency that inhibit the realization of large energy saving potential in the tea sector

Page 4: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

TEA MANUFACTURERequires both

electrical and thermal energy

Baseline energy consumption in south Indian tea factories:

Electrical: 135 million KWH / year which is about 5,40,400 KWH / y/ factory

Thermal: (mostly firewood) was 362500 tons /y or 1450 tons / factory

Page 5: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

BARRIERS AND INITIAL SUPPORT Tea industry coming out of recession after a long period so the timing was right

Energy never a focus area for cost cutting and factory modernization

High scepticism among the sector especially with outsiders looking at energy issues in the industry

Solid support from the Tea Board of India

Page 6: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

PHYSICAL PROGRESS All tea factories reached

through newsletters, group meetings, personal visits of experts, stalls set up in exhibitions etc. high attendance

Preliminary energy audits in 250 factories

Detailed energy audits in 95 factories

Tide Technical Reports (equipment specific post audit) in 100 factories

Page 7: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

PHYSICAL PROGRESS

One energy lab and four fuel labs set up in tea clusters

A set of 10 films on energy efficient interventions in tea industry produced. Will be circulated to all tea factories

Energy plantations and small hydro projects initiated

Wood gasifier introduced for green tea panning

Page 8: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

KNOWLEDGE PRODUCTS Well defined project baseline

from data collected from all tea factories in south India.

Energy audit reports from 100 factories (about 40% of the factories covered)

100 TIDE technical reports -Equipment and factory specific post audit energy consumption reports

Energy score card as a self assessment tool

Page 9: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

KNOWLEDGE PRODUCTS

14 newsletters with articles, information and update

About 15 power point presentations on energy conservation

Directory of energy efficient equipment suppliers

Article published in MSME journal

Page 10: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

LEARNING

Technology a barrier and not access to finance as was understood at the time of project conceptualization.

Energy use reform can be initiated through awareness and technical support without any financial incentives

The tea sector is extremely demanding and would reject any recommendation that is not backed by adequate data and information..

All risk is dynamic and constantly changing. Decisions on energy use reform are complex and they are not driven by techno economics, equipment specifications or CO2 reduction potential alone.

The project has developed some insights into how to gauge the need and the risk perception and constantly modify its intervention strategies.

Page 11: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

ACHIEVEMENTS

214 tea factories purchase 1014 new energy efficient equipment in the project period with an investment of US$ 3 million

Interventions currently saving 10 million KWH / yr and 25,000 tons firewood yr valued at Rs 12. 5 crores

Shift to sustainable fuel – briquette consumption increased by 30,000 tons in two years

Multi stakeholder engagement strategy – govt, civil society, industry and academia working together in harmony with a common goal

All knowledge on energy efficiency brought into public domain

Repeated requests from Assam and Darjeeling tea associations for a similar intervention. Tea Board promises support.

Page 12: ENERGY CONSERVATION IN SMALL SECTOR TEA PROCESSING UNITS IN SOUTH INDIA Executing agency: Tea Board of India Implementing agency: TIDE GEF agency: UNDP

For more information on this project contact:

Mr R Ambalavanan, Executive Director, Tea Board and National Project Director, Shelwood, Coonoor Club Road, Coonoor 643101, Nilgiris, Tamil Nadu. Tel: 0423-2231638/ 2230316; [email protected]; [email protected]

Ms Svati Bhogle, National Project Manager, TIDE. Tel 0802331556 [email protected],

Mr Srinivasan Iyer, Team Leader, Energy and Environment Unit, UNDP, 55, Lodhi Estate, New Delhi. Tel: 011-46532333; [email protected]