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December 2010

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and Pensions, Government of Indiahttp://indiagovernance.gov.in/

Researched and Documented by

OneWorld Foundation India

Husk Power Systems

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

Table of Contents EXECUTIVE SUMMARY ................................

BACKGROUND ................................

OBJECTIVE ................................

WORKING DESIGN ................................

METHODOLOGY ................................

KEY STAKEHOLDERS

LESSONS LEARNED ................................

AWARDS AND ACKNOWLEDGEMENTS

OVERCOMING CHALLENGES

WAY AHEAD ................................

REFERENCES ................................

APPENDIX A- INTERVIEW QUESTIONNAIRE

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

................................................................................................

................................................................................................................................

................................................................................................................................

................................................................................................

................................................................................................................................

................................................................................................

................................................................................................

ACKNOWLEDGEMENTS ................................................................

CHALLENGES ................................................................................................

................................................................................................................................

................................................................................................................................

UESTIONNAIRE ................................................................

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

1

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......................................................... 10

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

EXECUTIVE SUMMARY

Electrifying rural India remains a desired yet problematic goal for the Government of India.

National statistics illustrate deprivation as well as discrimination in the generation,

transmission and distribution of electricity in rural as compared to urban

Electricity is indispensable to many industries including agriculture, healthcare, and education.

It is also a key factor in the overall improvement of living standards. Although the Government

of India has prioritised rural electrification, as seen in the

year plan, the status quo remains the same. According to the 2001 census, 5,93,732 Indian

villages lack electricity. The midterm appraisal of the eleventh five

percent of villages (urban and rural

Bihar, Orissa, Uttar Pradesh and Jharkhand is still far below the national average of 50.

Furthermore, an electricity line runs through 80 percent of Indian villages, however only 52.5

percent of rural households have access to that electricity.

A global energy crisis and heightened environmental concerns has encouraged the search for

alternative sources of energy around the world. In this context, Husk Power Systems (HPS) has

emerged as a role model in the renewable energy sector. Today, HPS is revolutionising rural

electrification in India. HPS is an innovative social enterprise that promotes decentralised

power generation and distribution in remote villages of India. The platform is a bio

gasification technology that converts rice husks into combustible gases that can drive

generators to produce electricity. Running on an environmentally friendly model, HPS ensures

sustainable electricity to even the most remote parts of the country.

To date, HPS has installed 60 power plants that reach more than 250 villages and

approximately 1, 50,000 people in rural Bihar. By using renewable energy sources, the

electricity is supplied at a much lower cost than that of conventional modes such as kerosene

lanterns for households and diesel generators for commercial use. Through its generation of

employment, reduction in carbon emissions, and overall contribution to improved well

of Indians, HPS is drastically changing the landscape of rural Bihar.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

SUMMARY

Electrifying rural India remains a desired yet problematic goal for the Government of India.

National statistics illustrate deprivation as well as discrimination in the generation,

transmission and distribution of electricity in rural as compared to urban areas of the country.

Electricity is indispensable to many industries including agriculture, healthcare, and education.

It is also a key factor in the overall improvement of living standards. Although the Government

of India has prioritised rural electrification, as seen in the Planning Commission’s current five

year plan, the status quo remains the same. According to the 2001 census, 5,93,732 Indian

villages lack electricity. The midterm appraisal of the eleventh five-year plan noted that 85

percent of villages (urban and rural) are electrified, but household electrification in the states of

Bihar, Orissa, Uttar Pradesh and Jharkhand is still far below the national average of 50.

Furthermore, an electricity line runs through 80 percent of Indian villages, however only 52.5

nt of rural households have access to that electricity.

A global energy crisis and heightened environmental concerns has encouraged the search for

alternative sources of energy around the world. In this context, Husk Power Systems (HPS) has

role model in the renewable energy sector. Today, HPS is revolutionising rural

electrification in India. HPS is an innovative social enterprise that promotes decentralised

power generation and distribution in remote villages of India. The platform is a bio

gasification technology that converts rice husks into combustible gases that can drive

generators to produce electricity. Running on an environmentally friendly model, HPS ensures

sustainable electricity to even the most remote parts of the country.

To date, HPS has installed 60 power plants that reach more than 250 villages and

people in rural Bihar. By using renewable energy sources, the

electricity is supplied at a much lower cost than that of conventional modes such as kerosene

lanterns for households and diesel generators for commercial use. Through its generation of

ent, reduction in carbon emissions, and overall contribution to improved well

of Indians, HPS is drastically changing the landscape of rural Bihar.

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

2

Electrifying rural India remains a desired yet problematic goal for the Government of India.

National statistics illustrate deprivation as well as discrimination in the generation,

areas of the country.

Electricity is indispensable to many industries including agriculture, healthcare, and education.

It is also a key factor in the overall improvement of living standards. Although the Government

Planning Commission’s current five-

year plan, the status quo remains the same. According to the 2001 census, 5,93,732 Indian

year plan noted that 85

) are electrified, but household electrification in the states of

Bihar, Orissa, Uttar Pradesh and Jharkhand is still far below the national average of 50.

Furthermore, an electricity line runs through 80 percent of Indian villages, however only 52.5

A global energy crisis and heightened environmental concerns has encouraged the search for

alternative sources of energy around the world. In this context, Husk Power Systems (HPS) has

role model in the renewable energy sector. Today, HPS is revolutionising rural

electrification in India. HPS is an innovative social enterprise that promotes decentralised

power generation and distribution in remote villages of India. The platform is a biomass

gasification technology that converts rice husks into combustible gases that can drive

generators to produce electricity. Running on an environmentally friendly model, HPS ensures

To date, HPS has installed 60 power plants that reach more than 250 villages and

people in rural Bihar. By using renewable energy sources, the

electricity is supplied at a much lower cost than that of conventional modes such as kerosene

lanterns for households and diesel generators for commercial use. Through its generation of

ent, reduction in carbon emissions, and overall contribution to improved well-being

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

BACKGROUND Gyanesh Pandey and Ratnesh Yadav returned to their home state of Bihar to in hopes of

creating a lasting change in the impoverished parts of the state. Rural electrification was a

compelling need that motivated the entrepreneurs to begin their work in a remote village in

West Champaran district called ‘Tamkuha, which literally means ‘Fog of

Pandey and Yadav explored the options of non

electricity, but did not find the most common ways feasible

did not experience high levels of wind or have enough water for w

the entrepreneurs decided upon biomass gasification as the only viable option to generate

electricity. At the time, several rice millers in rural Bihar were already converting discarded rice

husks through biomass gasification t

allowed for a savings of 50 to 60 percent of diesel and at the time, did not work as an

independent source of power generation. Studies were conducted to find out how the Dual

Fuel Model of husk in conjunct

will operate without diesel. The results were not encouraging as rice husks produced a gas that

was very high in tar content, making it a ‘dirty gas’ that clogs engines. HPS believed that if th

engine was cleaned before the dirty gas could clog it, the model would work.

In August 2007, HPS, known as Samta Samriddhi Foundation at the time, succeeded in refining

the technology and electrifying Tamkuha village. Although the system had a strong w

model and vision, the much needed funding and exposure came through the efforts of co

founders, Manoj Sinha and Charles Ransler, who took the model to various business plan

competitions around the world.

Today, HPS has 60 power plants electrifying

1,50,000 rural Indians. Husk Power has employed and trained around 300 villagers to work in

their plants and has saved a total 1.25 million US dollars for the households it serves.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

Gyanesh Pandey and Ratnesh Yadav returned to their home state of Bihar to in hopes of

creating a lasting change in the impoverished parts of the state. Rural electrification was a

compelling need that motivated the entrepreneurs to begin their work in a remote village in

West Champaran district called ‘Tamkuha, which literally means ‘Fog of Darkness’.

Pandey and Yadav explored the options of non-conventional technologies to generate

electricity, but did not find the most common ways feasible - solar was too expensive and Bihar

did not experience high levels of wind or have enough water for wind or hydro power. Finally,

the entrepreneurs decided upon biomass gasification as the only viable option to generate

electricity. At the time, several rice millers in rural Bihar were already converting discarded rice

husks through biomass gasification technology to power mills. However, rice husk only

allowed for a savings of 50 to 60 percent of diesel and at the time, did not work as an

independent source of power generation. Studies were conducted to find out how the Dual

Fuel Model of husk in conjunction with diesel could be converted to a Single Fuel Model that

will operate without diesel. The results were not encouraging as rice husks produced a gas that

was very high in tar content, making it a ‘dirty gas’ that clogs engines. HPS believed that if th

engine was cleaned before the dirty gas could clog it, the model would work.

In August 2007, HPS, known as Samta Samriddhi Foundation at the time, succeeded in refining

the technology and electrifying Tamkuha village. Although the system had a strong w

model and vision, the much needed funding and exposure came through the efforts of co

founders, Manoj Sinha and Charles Ransler, who took the model to various business plan

competitions around the world.

Today, HPS has 60 power plants electrifying 250 villages, 25,000 households and reaching

1,50,000 rural Indians. Husk Power has employed and trained around 300 villagers to work in

their plants and has saved a total 1.25 million US dollars for the households it serves.

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

3

Gyanesh Pandey and Ratnesh Yadav returned to their home state of Bihar to in hopes of

creating a lasting change in the impoverished parts of the state. Rural electrification was a

compelling need that motivated the entrepreneurs to begin their work in a remote village in

Darkness’.

conventional technologies to generate

solar was too expensive and Bihar

ind or hydro power. Finally,

the entrepreneurs decided upon biomass gasification as the only viable option to generate

electricity. At the time, several rice millers in rural Bihar were already converting discarded rice

echnology to power mills. However, rice husk only

allowed for a savings of 50 to 60 percent of diesel and at the time, did not work as an

independent source of power generation. Studies were conducted to find out how the Dual

ion with diesel could be converted to a Single Fuel Model that

will operate without diesel. The results were not encouraging as rice husks produced a gas that

was very high in tar content, making it a ‘dirty gas’ that clogs engines. HPS believed that if the

engine was cleaned before the dirty gas could clog it, the model would work.

In August 2007, HPS, known as Samta Samriddhi Foundation at the time, succeeded in refining

the technology and electrifying Tamkuha village. Although the system had a strong working

model and vision, the much needed funding and exposure came through the efforts of co-

founders, Manoj Sinha and Charles Ransler, who took the model to various business plan

250 villages, 25,000 households and reaching

1,50,000 rural Indians. Husk Power has employed and trained around 300 villagers to work in

their plants and has saved a total 1.25 million US dollars for the households it serves.

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

OBJECTIVE Husk Power Systems aims to generate and distribute electricity through a renewable,

sustainable, low-cost, and environmentally friendly mode in order to meet the needs of rural

India.

WORKING DESIGN The HPS model leverages easily accessible, generally discarded, rice hu

efficient, safe and low cost electricity through a biomass gasification process. Today, each mini

plant supplies power to 400 households. The electricity produced through the rice husk

technology acts as an alternative to the 42,000 l

otherwise used per year. HPS expects to cut 750,000 tons of carbon emissions and save 50

million US dollars for over five million people by deploying clean, safe, efficient electricity at

affordable rates by 2014.

Generation and Distribution Process

Source: Husk Power Systems

Each power plant operates on a 35 to 100 kilowatt generator. Woody biomass, rice husk, food

scraps and coal are put inside the metal plant. There is a heater at the bottom of the gasifier

where partial burning of the raw material takes place and results in

of conversion varies between 60 to 85 percent depending upon the type of gasifier design and

fuel used. The heating temperature of the gasifier is maintained at 400 to 500 degrees Celsius in

an atmosphere of less than 1 percent

product of the process. The chamber mouth is attached with a venture, a kind of water fountain

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

ms aims to generate and distribute electricity through a renewable,

cost, and environmentally friendly mode in order to meet the needs of rural

WORKING DESIGN The HPS model leverages easily accessible, generally discarded, rice hu

efficient, safe and low cost electricity through a biomass gasification process. Today, each mini

plant supplies power to 400 households. The electricity produced through the rice husk

technology acts as an alternative to the 42,000 litres of kerosene and 18,000 litres of diesel

otherwise used per year. HPS expects to cut 750,000 tons of carbon emissions and save 50

million US dollars for over five million people by deploying clean, safe, efficient electricity at

Generation and Distribution Process

Source: Husk Power Systems

Each power plant operates on a 35 to 100 kilowatt generator. Woody biomass, rice husk, food

scraps and coal are put inside the metal plant. There is a heater at the bottom of the gasifier

where partial burning of the raw material takes place and results in gas production. Efficiency

of conversion varies between 60 to 85 percent depending upon the type of gasifier design and

fuel used. The heating temperature of the gasifier is maintained at 400 to 500 degrees Celsius in

an atmosphere of less than 1 percent oxygen. Gases are then produced with rice char, a by

product of the process. The chamber mouth is attached with a venture, a kind of water fountain

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

4

ms aims to generate and distribute electricity through a renewable,

cost, and environmentally friendly mode in order to meet the needs of rural

The HPS model leverages easily accessible, generally discarded, rice husks to produce clean,

efficient, safe and low cost electricity through a biomass gasification process. Today, each mini

plant supplies power to 400 households. The electricity produced through the rice husk

itres of kerosene and 18,000 litres of diesel

otherwise used per year. HPS expects to cut 750,000 tons of carbon emissions and save 50

million US dollars for over five million people by deploying clean, safe, efficient electricity at

Each power plant operates on a 35 to 100 kilowatt generator. Woody biomass, rice husk, food

scraps and coal are put inside the metal plant. There is a heater at the bottom of the gasifier

gas production. Efficiency

of conversion varies between 60 to 85 percent depending upon the type of gasifier design and

fuel used. The heating temperature of the gasifier is maintained at 400 to 500 degrees Celsius in

oxygen. Gases are then produced with rice char, a by-

product of the process. The chamber mouth is attached with a venture, a kind of water fountain

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

that works as a gas cleaning cum cooling system, which creates pressure to separate char, gas

and dust particles from the gas. Four filters are attached to the end to assist in the process: a

water seal, a three-stage gas filter including one for charcoal, another for husk, and the last for

fabric. A spark ignition engine and two lead acid batteries are used to

power the panels.

The plant also accommodates a husk and tar/char storage area, a water tank with hand

operated water pump, char and tar water settling tanks and water recycling pumps.

With 50 kilograms of rice husk loaded per hour,

load for 700 rural households. Husk Power now provides six to seven hours of electricity every

day.

The distribution system of HPS delivers electricity as a ‘pay for use’ service using a point to

point system connecting each household or business unit to HPS. There are plans to expand the

distribution system significantly in near future.

Electricity is generated in three phases

distribution circuit).

collector is from the local village. The husk loader is a daily wage worker. HPS complies with

labour laws to ensure favourable working conditions for all of its employees.

HPS monitors electricity consumption by ensuring frequent visits by bill collectors to operating

sites. If misuse or overconsumption is evident, the connection is suspended and a fine of Rs 10

is imposed for restoration.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

that works as a gas cleaning cum cooling system, which creates pressure to separate char, gas

cles from the gas. Four filters are attached to the end to assist in the process: a

stage gas filter including one for charcoal, another for husk, and the last for

fabric. A spark ignition engine and two lead acid batteries are used to

The plant also accommodates a husk and tar/char storage area, a water tank with hand

operated water pump, char and tar water settling tanks and water recycling pumps.

With 50 kilograms of rice husk loaded per hour, enough power can be produced to sustain a

load for 700 rural households. Husk Power now provides six to seven hours of electricity every

The distribution system of HPS delivers electricity as a ‘pay for use’ service using a point to

nnecting each household or business unit to HPS. There are plans to expand the

distribution system significantly in near future.

Electricity is generated in three phases - each phase produces 230 volts (one volt constitutes one

The distribution grid has single phase lines and does not

use transformers. The extension of the grid is up to 1.5

kilometres ensuring 190 volts at the furthest point of the

grid. HPS wires villages in a cost

through the use of bamboo poles and low voltages wires

and recommends using energy saving CFL bulbs.

Every operational unit includes an operator, a bill

collector cum electrician, and a husk loader. The operator

lives on the plant premises and the electrician cum bill

the local village. The husk loader is a daily wage worker. HPS complies with

labour laws to ensure favourable working conditions for all of its employees.

HPS monitors electricity consumption by ensuring frequent visits by bill collectors to operating

es. If misuse or overconsumption is evident, the connection is suspended and a fine of Rs 10

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

5

that works as a gas cleaning cum cooling system, which creates pressure to separate char, gas

cles from the gas. Four filters are attached to the end to assist in the process: a

stage gas filter including one for charcoal, another for husk, and the last for

fabric. A spark ignition engine and two lead acid batteries are used to crank the engine and

The plant also accommodates a husk and tar/char storage area, a water tank with hand

operated water pump, char and tar water settling tanks and water recycling pumps.

enough power can be produced to sustain a

load for 700 rural households. Husk Power now provides six to seven hours of electricity every

The distribution system of HPS delivers electricity as a ‘pay for use’ service using a point to

nnecting each household or business unit to HPS. There are plans to expand the

each phase produces 230 volts (one volt constitutes one

he distribution grid has single phase lines and does not

use transformers. The extension of the grid is up to 1.5

kilometres ensuring 190 volts at the furthest point of the

grid. HPS wires villages in a cost-effective manner

and low voltages wires

and recommends using energy saving CFL bulbs.

Every operational unit includes an operator, a bill

collector cum electrician, and a husk loader. The operator

lives on the plant premises and the electrician cum bill

the local village. The husk loader is a daily wage worker. HPS complies with

labour laws to ensure favourable working conditions for all of its employees.

HPS monitors electricity consumption by ensuring frequent visits by bill collectors to operating

es. If misuse or overconsumption is evident, the connection is suspended and a fine of Rs 10

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

METHODOLOGY The OneWorld research team identified Husk Power Systems as a best practice as it was found

to be socially and economically sustainable and capable of creating a change in the rural power

sector of the country. OneWorld team conducted both primary and secondary research. Desk

based research focused on gathering information available online on the background,

operations and achievements of Husk Power Systems. To fill in all remaining gaps, the CEO

was approached with an interview questionnaire.

Many parts of rural India are still struggling with electrification. This research attempts to

elucidate the important aspects of operation of a successful energy model to encourage its

replication.

KEY STAKEHOLDERS

Husk Power Systems – operator, produc

Investors: Ministry of New and Renewable Energy, Government of India, Draper Fisher

Jurvetson (DFJ), Cisco, IFC, LGT Venture Philanthropy, Acumen Fund, Shell Foundation

Villagers benefitted through electrification and/or employment with HPS.

LESSONS LEARNED Husk Power Systems has proven itself to be a successful alternative energy model. While

certain economic and technological hurdles have prevented the Government of

electrifying all villages under a conventional power project, the biomass gasification model of

HPS provides a new and promising way forward.

Low cost technology

HPS identified technologies suitable for operation in the economic environment of rural India.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

The OneWorld research team identified Husk Power Systems as a best practice as it was found

mically sustainable and capable of creating a change in the rural power

OneWorld team conducted both primary and secondary research. Desk

based research focused on gathering information available online on the background,

and achievements of Husk Power Systems. To fill in all remaining gaps, the CEO

was approached with an interview questionnaire.

Many parts of rural India are still struggling with electrification. This research attempts to

elucidate the important aspects of operation of a successful energy model to encourage its

KEY STAKEHOLDERS

operator, producer and distributer

Investors: Ministry of New and Renewable Energy, Government of India, Draper Fisher

Jurvetson (DFJ), Cisco, IFC, LGT Venture Philanthropy, Acumen Fund, Shell Foundation

Villagers benefitted through electrification and/or employment with HPS.

LESSONS LEARNED Husk Power Systems has proven itself to be a successful alternative energy model. While

certain economic and technological hurdles have prevented the Government of

electrifying all villages under a conventional power project, the biomass gasification model of

HPS provides a new and promising way forward.

HPS identified technologies suitable for operation in the economic environment of rural India.

Biomass was smartly chosen as the source of fuel

because it is simply waste to most and as such, it is

easily available at an exceptionally low cost. One and

a half million rupees are the total cost for running a

typical 40 kilowatt power plant.

The gasifiers used are manufactured at local

workshops and CNG engines are obtained from small

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

6

The OneWorld research team identified Husk Power Systems as a best practice as it was found

mically sustainable and capable of creating a change in the rural power

OneWorld team conducted both primary and secondary research. Desk

based research focused on gathering information available online on the background,

and achievements of Husk Power Systems. To fill in all remaining gaps, the CEO

Many parts of rural India are still struggling with electrification. This research attempts to

elucidate the important aspects of operation of a successful energy model to encourage its

Investors: Ministry of New and Renewable Energy, Government of India, Draper Fisher

Jurvetson (DFJ), Cisco, IFC, LGT Venture Philanthropy, Acumen Fund, Shell Foundation

Villagers benefitted through electrification and/or employment with HPS.

Husk Power Systems has proven itself to be a successful alternative energy model. While

certain economic and technological hurdles have prevented the Government of India from

electrifying all villages under a conventional power project, the biomass gasification model of

HPS identified technologies suitable for operation in the economic environment of rural India.

Biomass was smartly chosen as the source of fuel

because it is simply waste to most and as such, it is

easily available at an exceptionally low cost. One and

alf million rupees are the total cost for running a

typical 40 kilowatt power plant.

The gasifiers used are manufactured at local

workshops and CNG engines are obtained from small

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

suppliers. Even the plant construction costs are minimised by constructin

available bamboo and asbestos.

Supply is sustainable because rice husk is readily available from local farmers.

villages using bamboo poles and recommends consumers to use CFL bulbs which contribute to

keeping distribution costs low. The well

six months of operations.

Affordability for consumers

The rate at which consumers obtain electricity from HPS is a lot cheaper than kerosene used to

light lanterns and diesel to power generators. Domestic users pay Rs 80 to100 per month for a

30 watt connection, as compared to the total monthly expenditure on kerosene/diesel at a

minimum of Rs 125 per month. The electricity generated through the rice husks replaces the

use of 42,000 litres of kerosene and 18,000 litres of diesel per year. The savings help commercial

users to invest in their own ventures and household users to spend more on food for their

family members.

HPS provides electricity on a ‘pay for use’ basis; the us

type of electrical appliances that the consumers own.

The CEO of Husk Power Systems stated that as the electricity is priced considering the current

expenditure on the alternative, it necessarily makes it affordable.

Generating local avenues for employment

HPS creates local jobs; around 300 villagers are trained to work in the plants. HPS pays the

villagers for rice husks that they would otherwise be discarded. HPS aims to create 7000 local

jobs by the end of 2014.

The waste product of the process is high in silica which has commercial value. HPS plans to

employ rural women in the sale of silica to solar panel manufacturers.

Social accountability

HPS is a successful model of social entrepreneurship where it strives to serve the society by

giving back more than it takes. The corporate social responsibility arm of Husk Power Systems,

Samta Samriddhi Foundation, sponsors the education of 200 children

trains women in making incense sticks. The foundation also hopes to train a team of women in

each cluster to audit the work of HPS, manage the schools adopted, and conduct awareness

programmes on issues pertaining to electricity, pub

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

Even the plant construction costs are minimised by constructin

available bamboo and asbestos.

Supply is sustainable because rice husk is readily available from local farmers.

villages using bamboo poles and recommends consumers to use CFL bulbs which contribute to

ion costs low. The well-designed model ensures profitability per plant within

The rate at which consumers obtain electricity from HPS is a lot cheaper than kerosene used to

to power generators. Domestic users pay Rs 80 to100 per month for a

30 watt connection, as compared to the total monthly expenditure on kerosene/diesel at a

minimum of Rs 125 per month. The electricity generated through the rice husks replaces the

2,000 litres of kerosene and 18,000 litres of diesel per year. The savings help commercial

users to invest in their own ventures and household users to spend more on food for their

HPS provides electricity on a ‘pay for use’ basis; the user fee is dependent on the number and

type of electrical appliances that the consumers own.

CEO of Husk Power Systems stated that as the electricity is priced considering the current

expenditure on the alternative, it necessarily makes it affordable.

Generating local avenues for employment

HPS creates local jobs; around 300 villagers are trained to work in the plants. HPS pays the

villagers for rice husks that they would otherwise be discarded. HPS aims to create 7000 local

The waste product of the process is high in silica which has commercial value. HPS plans to

employ rural women in the sale of silica to solar panel manufacturers.

HPS is a successful model of social entrepreneurship where it strives to serve the society by

giving back more than it takes. The corporate social responsibility arm of Husk Power Systems,

Samta Samriddhi Foundation, sponsors the education of 200 children in private schools and

trains women in making incense sticks. The foundation also hopes to train a team of women in

each cluster to audit the work of HPS, manage the schools adopted, and conduct awareness

programmes on issues pertaining to electricity, public health and environment.

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

7

Even the plant construction costs are minimised by constructing houses of locally

Supply is sustainable because rice husk is readily available from local farmers. HPS wires the

villages using bamboo poles and recommends consumers to use CFL bulbs which contribute to

designed model ensures profitability per plant within

The rate at which consumers obtain electricity from HPS is a lot cheaper than kerosene used to

to power generators. Domestic users pay Rs 80 to100 per month for a

30 watt connection, as compared to the total monthly expenditure on kerosene/diesel at a

minimum of Rs 125 per month. The electricity generated through the rice husks replaces the

2,000 litres of kerosene and 18,000 litres of diesel per year. The savings help commercial

users to invest in their own ventures and household users to spend more on food for their

er fee is dependent on the number and

CEO of Husk Power Systems stated that as the electricity is priced considering the current

HPS creates local jobs; around 300 villagers are trained to work in the plants. HPS pays the

villagers for rice husks that they would otherwise be discarded. HPS aims to create 7000 local

The waste product of the process is high in silica which has commercial value. HPS plans to

HPS is a successful model of social entrepreneurship where it strives to serve the society by

giving back more than it takes. The corporate social responsibility arm of Husk Power Systems,

in private schools and

trains women in making incense sticks. The foundation also hopes to train a team of women in

each cluster to audit the work of HPS, manage the schools adopted, and conduct awareness

lic health and environment.

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

Go green

The project is environmentally friendly as the biomass gasification process used to generate

electricity is a low emitter of carbon emissions. As of August 2010, HPS has prevented 50,000

tons of carbon emissions. It envisages protecting the environment fro

emissions by 2014.The process in not noise

surroundings. Rather, it is reported to reduce burglaries and snake bites due to bright lighting.

AWARDS AND ACKNOWLEDGEMENTS

The numbers of accolades and prizes won at both the

national a nd international levels indicates the novelty

and wide applicability of HPS. In September 2010, HPS

was a finalist in the BBC World Challenge. At the same

time, the prestigious Tech Museum Award for

innovation in applying technology to benefit humanity

was given to HPS. The company has also been

recognised for its work by the University of Texas and

University of Virginia. The Ministry of Natural and Renewable Energy, Government of India

provides HPS with a subsidy of up to 66 percent per system cost.

OVERCOMING CHALLENGES Unconventional ideas often face a number of barriers to success. The CEO of HPS says the

major challenge they face is the near complete absence of ready

Motivation and dedication has allowed HPS to overcome hurdles. Initial lack of funding was

solved through monetary awards. The need for machinery was answered t

development.

When the company initially started buying husks for their pilot

advantage of the high demand and low supply situation and increased the price, sometimes

even resorting to hoarding. HPS responded by setting up a mill of their own where they de

husked the rice of the villagers free of cos

price, with the assurance that HPS would shut down their mill. Training and managing of

manpower in rural areas has been another major challenge Lastly, HPS continues to struggle

with the difficulties that come with caste dynamics preventing the company from reaching all

segments of the population.

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

The project is environmentally friendly as the biomass gasification process used to generate

electricity is a low emitter of carbon emissions. As of August 2010, HPS has prevented 50,000

tons of carbon emissions. It envisages protecting the environment from 750,000 tons of carbon

emissions by 2014.The process in not noise-polluting, nor is the gas harmful to its

surroundings. Rather, it is reported to reduce burglaries and snake bites due to bright lighting.

AWARDS AND ACKNOWLEDGEMENTS

olades and prizes won at both the

national a nd international levels indicates the novelty

and wide applicability of HPS. In September 2010, HPS

was a finalist in the BBC World Challenge. At the same

time, the prestigious Tech Museum Award for

n applying technology to benefit humanity

was given to HPS. The company has also been

recognised for its work by the University of Texas and

University of Virginia. The Ministry of Natural and Renewable Energy, Government of India

dy of up to 66 percent per system cost.

OVERCOMING CHALLENGES Unconventional ideas often face a number of barriers to success. The CEO of HPS says the

major challenge they face is the near complete absence of ready-made materials for operations.

Motivation and dedication has allowed HPS to overcome hurdles. Initial lack of funding was

solved through monetary awards. The need for machinery was answered t

When the company initially started buying husks for their pilot projects, rice mill owners took

advantage of the high demand and low supply situation and increased the price, sometimes

even resorting to hoarding. HPS responded by setting up a mill of their own where they de

husked the rice of the villagers free of cost. This compelled owners to maintain a stable and fair

price, with the assurance that HPS would shut down their mill. Training and managing of

manpower in rural areas has been another major challenge Lastly, HPS continues to struggle

that come with caste dynamics preventing the company from reaching all

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

8

The project is environmentally friendly as the biomass gasification process used to generate

electricity is a low emitter of carbon emissions. As of August 2010, HPS has prevented 50,000

m 750,000 tons of carbon

polluting, nor is the gas harmful to its

surroundings. Rather, it is reported to reduce burglaries and snake bites due to bright lighting.

University of Virginia. The Ministry of Natural and Renewable Energy, Government of India

Unconventional ideas often face a number of barriers to success. The CEO of HPS says the

made materials for operations.

Motivation and dedication has allowed HPS to overcome hurdles. Initial lack of funding was

solved through monetary awards. The need for machinery was answered through local level

projects, rice mill owners took

advantage of the high demand and low supply situation and increased the price, sometimes

even resorting to hoarding. HPS responded by setting up a mill of their own where they de-

t. This compelled owners to maintain a stable and fair

price, with the assurance that HPS would shut down their mill. Training and managing of

manpower in rural areas has been another major challenge Lastly, HPS continues to struggle

that come with caste dynamics preventing the company from reaching all

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

WAY AHEAD Husk Power Systems envisages installing 500 power plants by the end of 2012. With 500 power

plants, HPS will be empowered to employ 700 operators

level managers and five senior managers, along with generating local employment for a large

number of villagers. HPS aims to install 2014 power plants by the end of the year 2014, for the

creation of 10,000 jobs in rural

tons of carbon dioxide emissions while lighting one million households.

If the model is extended to other parts of the country, it has the potential to generate 27GW of

power from the discarded rice husks produced across the country. That will amount to one

sixth of the total installed generating capacity of the country.

Husk Power Systems plans to expand their operations to the South starting with Tamil Nadu,

to the East with West Bengal,

Plans of registering the power plants under the Clean Development Mechanism will capture an

extra Rs 1 lakh per annum per plant. This is based on the energy saving as compared to

burning 10 litres of kerosene per month.

HPS is optimistic about replication as it asserts that the process of biomass gasification is a

simple one that a non-literate person can adopt with some amount of training.

Research was carried out by the OneWorld

Documentation was created by Communications Associate, Ajupi Baruah

For further information, please contact Naimur Rahman, Director, OWFI

REFERENCES http://www.huskpowersystems.com/

http://www.acumenfund.org/investment/husk

http://www.yourstory.in/news/3382

systems

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

Husk Power Systems envisages installing 500 power plants by the end of 2012. With 500 power

plants, HPS will be empowered to employ 700 operators, 35 cluster level managers, 10 mid

level managers and five senior managers, along with generating local employment for a large

number of villagers. HPS aims to install 2014 power plants by the end of the year 2014, for the

creation of 10,000 jobs in rural India. As a green producer of electricity, HPS will save 72,000

tons of carbon dioxide emissions while lighting one million households.

If the model is extended to other parts of the country, it has the potential to generate 27GW of

rded rice husks produced across the country. That will amount to one

sixth of the total installed generating capacity of the country.

Husk Power Systems plans to expand their operations to the South starting with Tamil Nadu,

to the East with West Bengal, to the Northeast with Assam, and across borders to Nepal.

Plans of registering the power plants under the Clean Development Mechanism will capture an

extra Rs 1 lakh per annum per plant. This is based on the energy saving as compared to

of kerosene per month.

HPS is optimistic about replication as it asserts that the process of biomass gasification is a

literate person can adopt with some amount of training.

Research was carried out by the OneWorld Foundation, Governance Knowledge Centre (GKC) team.

Documentation was created by Communications Associate, Ajupi Baruah

For further information, please contact Naimur Rahman, Director, OWFI at [email protected]

http://www.huskpowersystems.com/

http://www.acumenfund.org/investment/husk-power-systems.html

http://www.yourstory.in/news/3382-acumen-fund-announces-investment-

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

9

Husk Power Systems envisages installing 500 power plants by the end of 2012. With 500 power

, 35 cluster level managers, 10 mid-

level managers and five senior managers, along with generating local employment for a large

number of villagers. HPS aims to install 2014 power plants by the end of the year 2014, for the

India. As a green producer of electricity, HPS will save 72,000

If the model is extended to other parts of the country, it has the potential to generate 27GW of

rded rice husks produced across the country. That will amount to one-

Husk Power Systems plans to expand their operations to the South starting with Tamil Nadu,

to the Northeast with Assam, and across borders to Nepal.

Plans of registering the power plants under the Clean Development Mechanism will capture an

extra Rs 1 lakh per annum per plant. This is based on the energy saving as compared to

HPS is optimistic about replication as it asserts that the process of biomass gasification is a

literate person can adopt with some amount of training.

Foundation, Governance Knowledge Centre (GKC) team.

Documentation was created by Communications Associate, Ajupi Baruah

[email protected]

-in-husk-power-

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

http://blogs.independent.co.uk/2010/12/10/how

http://www.eksochh.com/socent

power/

http://connect.in.com/husk-power

APPENDIX A- INTERVIEW QUESTIONNAIREGyanesh Pandey, CEO, Husk Power Systems

1. What are the measures adopted to enhance affordability?

2. Who are the key stakeholders in this programme?

3. Other than the initial problem of hoarding of rice husks by mill owners, have there been any

other major challenges faced thus far or expected in the future?

4. How is HPS environmentally sustainable? What are the mechanisms and indicators adopted

to measure the proclaimed 50,000 tons cut in carbon emissions?

5. How does HPS ensure compliance with labour laws to favour the working conditions of the

employees?

6. What are the major lessons learned in developing and deploying HPS?

7. Today, HPS has 60 power plants and plans to install 2014 power plants and create 10,000

local jobs by the year 2014. Is this target achievable? How?

8. Has the HPS model been replicated in other parts of the country? If so, where?

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre

romoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Researched and documented by

OneWorld Foundation India

Environmental Sustainability

Husk Power Systems

http://blogs.independent.co.uk/2010/12/10/how-to-make-electricity-from-rice

http://www.eksochh.com/socent-of-the-weekhusk-power-systems-empowering

power-systems/photo-gallery-more.html

INTERVIEW QUESTIONNAIRE Gyanesh Pandey, CEO, Husk Power Systems

1. What are the measures adopted to enhance affordability?

2. Who are the key stakeholders in this programme?

3. Other than the initial problem of hoarding of rice husks by mill owners, have there been any

other major challenges faced thus far or expected in the future?

. How is HPS environmentally sustainable? What are the mechanisms and indicators adopted

measure the proclaimed 50,000 tons cut in carbon emissions?

5. How does HPS ensure compliance with labour laws to favour the working conditions of the

6. What are the major lessons learned in developing and deploying HPS?

60 power plants and plans to install 2014 power plants and create 10,000

local jobs by the year 2014. Is this target achievable? How?

8. Has the HPS model been replicated in other parts of the country? If so, where?

CCOUNTABILITY

Case Study Environmental Sustainability

Husk Power Systems

December 2010

10

rice-husk/

empowering-lives-through-

3. Other than the initial problem of hoarding of rice husks by mill owners, have there been any

. How is HPS environmentally sustainable? What are the mechanisms and indicators adopted

5. How does HPS ensure compliance with labour laws to favour the working conditions of the

60 power plants and plans to install 2014 power plants and create 10,000

8. Has the HPS model been replicated in other parts of the country? If so, where?