husk power systems - governance in...
TRANSCRIPT
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
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ACKNOWLEDGEMENTS ................................................................
CHALLENGES ................................................................................................
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................................................................................................................................
UESTIONNAIRE ................................................................
CCOUNTABILITY
Case Study Environmental Sustainability
Husk Power Systems
December 2010
1
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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
-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?