Moradabad District Energy Plan Report

MORADABAD DISTRICT ENERGY PLAN REPORT

Vasudha Foundation December 2012 CISRS House, 14 Jungpura B Mathura Road, New Delhi - 110 014 www.vasudha-india.org 1

Contents

I. Introduction

1.1 Background 1.2 Scope and Objectives of the Study and Plan 1.3 Methodology

II. Profile of Moradabad

2.1 Physiography and Climate Profile of Moradabad 2.2 Area and Population (Demographic characteristics) 2.3 Economic Profile 2.4 Land Use Pattern 2.5 Cropping Pattern, Agriculture trends and practices and irrigation sources and practices 2.6 Livestock Population and Trends of the district 2.7 Waste Generation in the District 2.8 Industry Profile of the District 2.9 Electricity Sector Overview 2.10 Overview of electricity Consumption patterns 2.11 Overview of other energy consumption patterns and overview 2.12 Overview of electricity Supply

III. DETAILED ENERGY CONSUMPTION IN THE DISTRICT

3.1 Bird’s Eye View of the Electricity Consumption pattern in the district 3.2 Domestic Electricity Consumption in the District 3.3 Commercial Electricity Consumption pattern in the district 3.4 Large and Medium Industries Electricity Consumption pattern in the district 3.5 Small Industries Electricity Consumption pattern in the District 3.6 Overview of Government and Public Building Electricity Consumption pattern 3.7 Overview of the electricity consumption for Public Water Works and Lighting 3.8 Detailed overview of other Energy Consumption pattern in the District 3.9 Case Study of Brass Industry and its Energy Consumption patterns

IV. SOURCES OF ENERGY SUPPLY

4.1 Electricity Supply Sources 4.2 Supply – Demand Gap

V. RANGE OF GREEN ENERGY TECHNOLOGIES AND CONVERSION OPTIONS AVAILABLE

5.1 Full range of technology options available

VI. RENEWABLE ENERGY POTENTIAL ASSESSMENT

6.1 Solar Radiation – Grid and off grid solutions and applications 6.2 Bio-Sources and agro-wastes 6.3 Bio-Gas

6.4 Potential from Co-Generation 6.5 Potential from Micro-Hydel 6.6 Electricity Generation Potential from Stand Alone Renewable Energy Systems 6.7 Waste to Energy Generation Potential for Moradabad District 6.8 Summary of Energy Generation from Renewable Energy projects

VII. ESTIMATION OF ENERGY EFFICIENCY POTENTIALS FOR MORADABAD DISTRICT

7.1 Transmission and Distribution Loss Reduction Potential 7.2 Energy Efficiency Potential Estimation from the Domestic Sector 7.3 Conventional Electricity Saving Potential Estimation from the Brass Industry Sector 7.4 Energy Efficiency Potential Estimation from the Municipal and Government buildings, Public Water Works and Street Lighting segment 7.5 Summary of Energy Efficiency Potentials for the district

VIII. ESTIMATION OF OTHER ENERGY SAVING POTENTIAL (LPG, COAL FOR BRONZE INDUSTRY, KEROSENE FOR LIGHTING)

8.1 Savings potential from the use of Coal from Brass Industry by Alternate fuel for furnace 8.2 Saving potential from the use of Kerosene through 100% electrification 8.3 Saving potential from the use of LPG through bio-gas access

IX. ESTIMATION OF FUTRE ENERGY DEMAND

9.1 Assumptions and Calculations 9.2 Electricity Projections up to 2020 9.3 Energy Projections up to 2020

X. TECHNO-COMMERCIAL VIABILITY FOR VARIOUS POSSIBLE OPTIONS AND SUB-SECTOR INITIATIVES (MICRO BUSINESS PLAN)

10.1 Techo-Commercial Feasibility and Costing for Option 1 (Aggressive Solar Generation 10.1.1 The Capital Cost Implications for Option 1 proposed 10.1.2 Options for meeting the Capital Cost – Current Policies and Prgorammes 10.1.3 The Total Green Energy Option expressed in Million Units – a Conversion from MW to Million kWh 10.1.4 The Cost Implications in terms of Tariffs to the Consumer 10.1.5 The Technical Viability for this option – the pros and cons

10.2 Techo-Commercial Feasibility and costing for Option 2 (Solar dominant but not very aggressive capacity addition) 10.2.1 The Capital Cost Implications for Option 2 Proposed 10.2.2 The Cost Implications in terms of tariffs to the consumer 10.2.3 The Technical Viability for this option – the pros and cons

10.3 Techo-Commercial Feasibility and costing for Option 3 (bio-mass dominant but not very aggressive capacity addition) 10.3.1 The Capital Cost Implications for Option 3 Proposed 10.3.2 The Cost Implications in terms of tariffs to the consumer 10.3.3 The Technical viaibility for this option – pros and cons

10.4 Techno-commercial viability for Municipal Street Lighting and public water works – Options and Costs

10.5 Techno Commercial Viability for Energy Efficiency improvements in the Brass Clusters – options and cost

10.6 Programmes and Schemes for Renewable Energy in India

XI. ROADMAP FOR POLICY FRAMEWORK CREATION/STRENGTHENING

11.1 Introduction 11.2 Time Lines for Policy Framework Creation

XII. GHG Emission Trajectory for Moradabad District

12.1 Current GHG Emission Profile – a back of the envelope calculation 12.2 Estimate of Projected GHG emission reduction – BAU vs. Proposed plan

Annexures

Executive Summary

Introduction 1.1 Background:

Electricity demand in India is expected to grow rapidly from 813 GWh in 2007-08 to 2,104 GWh in 2020 for a GDP growth rate scenario of 8% per year1. Current planning efforts call for the majority of this demand to be met by thermal power plants (i.e. coal and nuclear) due to the government’s view that electricity generated from these sources (using either domestic or imported coal) is cheaper. Historically, electricity demand has consistently outpaced electricity supply, leading to severe electricity shortages. Actual supply capacity additions have been consistently lower than the targets set by the government2. As per the 11th five-year plan, approximately 80 GW of new coal capacity was expected to come online by 2012; to date only 50 GW of that capacity has been constructed. Further, progress was slow in providing fuel for much of the coal capacity that was installed in 2010-11, suggesting that the capacity factors may be significantly lower than expected.

With increasing pressure on India to address climate change coupled with the challenges of ensuring energy access for all, the country needs to re-look at its energy policy and direction.

Clean energy options, such as renewable energy (RE) and energy efficiency (EE), meet not only the environmental and energy security objectives, but also can play a crucial role in reducing chronic power shortages. Both RE and EE also can be deployed far more rapidly than conventional large-scale thermal power plants.

In the recent years, the renewable energy sector has received a boost in the form of a number of policy initiatives, which if properly implemented, could potentially lead to widening the markets for renewable energy ramp-up in India. Some of the policy initiatives are:-

1. National Electricity Policy (2005)- notified in compliance with the Electricity Act- 2003, clause 5 of the policy lays down conditions to promote and harness renewable energy sources.

2. National Tariff Policy (2006) - elaborates the role of regulatory commissions and specifies a mechanism for promoting use of renewable energy.

3. Rural Electrification Policy (2006) - provides for the first time a policy framework for decentralized distributed generation of electricity based on conventional and non- conventional sources.

4. State Renewable Purchase Obligations with feed-in-tariffs

5. National Solar Mission

6. Generation Based Incentives replacing Accelerated Depreciation for wind farms

7. Renewable Energy Certificates

Similarly, for energy efficiency and conservation, the enactment of the Energy Conservation Act 2001 has given a huge boost to the sector and the Bureau of Energy Efficiency which was set up to in accordance with the Act, has so far done an exemplary job in prioritizing

1 Planning Commission, Government of India (GOI), 2011 2 (Sathaye et al., 2010) 6 energy efficiency, despite a lot of resistance from various quarters, inclusive of some fellow ministries and government agencies.

However, despite all this, the market for clean energy in India still remains very small and negligible. It needs to be said here that the clean energy market has largely been private investment driven, with very little public investment having gone into it, unlike the other sectors within the broad ambit of energy, such as nuclear energy, coal thermal and hydel energy.

Some of the reasons for the sluggish penetration of renewable energy and energy efficiency in India include-

 high costs of renewable energy solutions  lack of awareness of the potentials of renewable energy not only to the common man but also to policy makers  availability of technologies  low levels of maintenance  limited availability of resources such as land for solar power projects and biomass  lack of entrepreneurial models

Therefore, despite the fact that a number of new policies framework to promote renewable energy has been brought out in the recent past, contradictions in policies also act as a major barrier towards the large scale deployment of green energy solutions.

There have been a number of research studies and reports that have been published which clearly show-case that a 100% clean energy solution is possible and feasible globally by 2050 and one such report was published recently by WWF titled the “Energy Report”.

However, what is required for a country like India, particularly where awareness levels, of the potentials and possibilities of renewable energy, are fairly low and where the general perception is that clean energy solutions are very expensive is a model of how such a solution is not only possible and feasible and also economically viable in the medium run. Such a pathway needs to not only show how renewable energy solutions can be made efficient but to also dispel the myth that the large number of failed renewable energy projects are due to poor technologies. In most cases, failed projects are largely due to poor design, poor management practices and systems and lack of involvement of the beneficiaries of the project.

In view of this, this project proposes to take up a detailed study of clean energy options in the Moradabad district of Uttar Pradesh.

1.2 Scope and Objectives of the Study and Plan

The broad objective of the study is to prepare a detailed district energy plan that would look at all possible sources of energy and come up with possible scenarios for the district to have as much green energy as possible, with the ultimate objective being 100% green energy district, if feasible.

The study would do a detailed profiling of the districts, analyze the current energy demand and supply trends, conduct a detailed resource mapping of all clean energy options possible and conduct a detailed techno-commercial viability for the possible implementation of “clean energy plans” for the district.

1.3 Methodology

1.3.1 Field Survey

Village and Rural Energy Assessment: a. Primairly the assessment was to look at rural energy supply and rural household energy needs b. Agricultural needs, particularly for water for irrigation c. Demand and supply scenario d. And assessment of gaps in energy supply e. Land utilization f. Livestock assessment

Artisan and Rural Industry Survey:

Data was collected from, households under artisan category, particularly, the bronze and sheet metal industry, about their occupation / activities, number of persons involved in it, time spent, sources and quantity of energy consumed and their monthly output.

Data was collected from rural industry owners. In detail the number of persons involved in industry, schedule of running, energy consumed and monthly output, and amount of agro- waste generated if any

Medium and Large Industries:

Moradabad district has a large number of small and medium industries and few large industries, which are largely paper mills, sugar mills and large export oriented handicrafts units, which would come under the category of small to medium sized industries. As part of the

Urban Household Survey

a. Primairly the assessment was to look at urban domestic energy supply and Vs. household energy needs b. Energy Vs. Electricity use c. Demand and supply scenario d. And assessment of gaps in energy supply e. Land utilization f. Overview of household assets requiring electricity supply and hours of usage

1.3.2 Desk Research:

The desk research involved sourcing documents from various departments from the web to get an overview of the following information:

Data Perused from the Web

DEPARTMENT TYPE OF INFORMATION

Uttar Pradesh Renewable Energy Programmes for Renewable Energy Promotion Development Agency (UP-NEDA) for the district of Moradabad

Achievements achieved so far in Renewable Energy and Energy Efficiency Promotion and installations

Future Programmes if any

Details on the Proposed Solar City plan for Moradabad

Paschimanchal Vidyut Vitran Nigam Details of Electricity Supply for the last 5-7 years Limited (The Electricity Distribution Utility for Moradabad Circle) Category wise Consumers and supply for the last 5-7 years

A T & C Loss data

Revenue collection data from electricity supply to various category of consumers

Office of the Director General Census, 2001 and 2011 cencus New Delhi (censusindia.gov.in) District Agriculture office Land utilisation pattern of the District/blocks, cropping pattern and crop yields of different crops, soil data, rainfall details Animal husbandry office, Chief Live stock population of the District/blocks Veterinary Officer District Supply Office Number of LPG, Petrol, Kerosene dealers, PDS shops and monthly/annual quantity supplied Department of Industries, Uttar Pradesh List of industries Bureau of Energy Efficiency Status of implementation of Bachchat Lamp (www.bee-india.nic.in) Yojana Planning Commission, Government of State Plan for 2009, 2010 and 2011 India (www.planningcommission.nic.in) Tentative plan prepared by the state for 2012 State Planning Commission Sector wise and district wise plan outlay for 2011 and 2012

1.3.3 One on One Meetings:

One on one meetings was held with

a) Collector and Chief Development Officer, Moradabad District b) Project office in charge for Moradabad District of Uttarpradesh Renewable Energy Development Agency c) Agriculture Extension Officer, Moradabad District d) Representations of Bronze and sheet metal industry association e) Visit to a number of artisans and small home bronze industry and discussion with the artisans and workers f) Chief Engineer, Pashimanchal Vidyut Vitran Nigam Limited g) Visits to villagers and interaction with community members h) Visit to one Brass Polish chemical manufacturing unit and discussion with the owners i) Visit to a sugarmill and discussion with owners j) Visit to the District Veternary hospital

CHAPTER – 2

PROFILE OF THE DISTRICT

2.1 Physiography and Climate Profile of Moradabad:

District Profile of Moradabad

A. Physiography and Climate Profile of Moradabad-

Moradabad is located in the western part of Uttar Pradesh, and forms a part of the Gangetic alluvial plains. The district is bounded on the North by Bijnore and Nainital districts on the East by Rampur district and on the South by Badaun. The Ganga forms its natural boundary on the West and separates it from the district Bulandshahr and Meerut.

The climate is arid/sub-humid and is characterised by a hot summer, a bracing cold season and general dryness except in the south-west monsoon season. About 86% of rainfall takes place from June to September. The average annual rainfall is 967.3 mm. During monsoon surplus water is available for deep percolation to ground water. In May, the mean daily maximum temperature is about 400C and mean daily minimum temperature about 250C and maximum temperature rises upto over 450C. With the advancement of the monsoon in June

11 there is a appreciable drop in day temperature. January is generally the coldest month with mean daily maximum temperature at about 210C and the mean daily minimum is about 80C. The district is drained by river Ramganga and its tributaries namely Dhela Nadi, Koshi Nadi, Gangan Nadi, Aril Nadi and Sot Nadi.

Moradabad District is divided into 6 Tehsils & 13 Blocks. Total no. of Nyaya Panchayats in the district are 87 while Gram Sabhas are 883. The total habited villages are 1555 (out of a total of 1793 villages).

The Tehsils and Blocks of the district are as follows:

Tehsils- (i) Kanth (ii) Moradabad (iii) Thakurdwara (iv) Bilari (v) Sambhal (vi) Chandausi

Blocks- (1) Thakurdwara (2) Bilari (3) Chhajlet (4) Asmauli (5) Sambhal (6) Panvasa (7) Magatpur Tanda (8)Moradabad (9) Munda Pande (10) Deengarpur (11) Baniyakheda (12) Bahjoi.

The district headquarters is the city of Moradabad, situated at the bank of the River Ram Ganga (a tributary of the Ganges). It was founded in 1600 and was named after Mughal Emperor Shah Jahan’s son Murad Bux. The city is famous for its huge export of brass handicrafts.

2.2 Area and Population (Demographic characteristics)-

The geographical area of the Moradabad District is 3759 Sq. Km. Its Total population is 47, 73, 138 out of which males are 25,08,299 and females are 22,64,839. Of the total population, 31,97,475 constitute the rural population and the rest i.e. 15,75,663 makes the urban population. (Census 2011) The population density of Moradabad is 967 persons per sq. Km.

Table 1: Demographic Profile of Moradabad District

Particulars Census 2001 Census 2011

Total Rural Urban Total Rural Urban Total HH 573,063 396,512 176,551 Total Population 3,810,983 2,647,292 1,163,691 4,773,138 3,197,475 1,575,663 Total Male 2,032,302 1,415,425 616,877 2,508,299 1,682,789 825,510 Total Female 1,778,681 1,231,867 546,814 2,264,839 1,514,686 750,153 Population below 6 yrs. 773,996 577,589 196,407 763,000 549,730 213,270 Literate population 1,358,935 811,080 547,855 2,352,924 1,468,628 884,296 Illiterate population 1,678,052 1,258,623 419,429 1,657,214 1,179,117 478,097 Working population 1,181,996 869,418 312,578 Nonworking population 2,628,987 1,777,874 851,113 (Source- http://censusindia.gov.in/)

2.3 Economic Profile of Moradabad:

The economy of the district is agrarian while the economic base of the city is small and medium scale enterprises. Moradabad is known for its brass work, and there are about 600 export units and 5000 industries in the district.

2.4 Land use Pattern:

In the district, of the total reporting area, 84.4 per cent of the area is the net area sown; 10.5 per cent of the land is put to non-agricultural uses; and 2.2 per cent of the area is fallow. Forest and grazing lands in the district are 0.2 per cent and 0.3 per cent respectively.

Figure 1: Land Use Pattern of Moradabad District

Source: http://agricoop.nic.in/Agriculture%20Contingency%20Plan/UP/UP23-Moradabad- 30.10.12.pdf

2.5 Agriculture trends and practices in Moradabad District:

The principal crops in the Moradabad district are: (i) wheat, (ii) paddy, (iii) sugarcane, (iv) bajra, and (v) urd. Other crops grown in the district are (i) barley, (ii) jowar, (iii) maize, (iv) moong, (v) arhar, (vi) gram, and (vii) potato. Private tubewells are found to be the major source of irrigation in the district. The table below shows the percentage share of irrigation by major sources-

Table 2: Sources of Irrigation Source of irrigation Percentage share

Canal 3.68

Government Tubewell 1.00

Private Tubewell 73.18

Other Sources 22.14

Net Irrigated Area 100.00

(Source- Statistical Bulletin–2006, District Moradabad, Statistical Diary, 2006, U.P., Economics and Statistics Division, State Planning Institute, Uttar Pradesh, Lucknow)

The following table indicates the percentage share of the various crops in the cropping pattern of the district-

Table 3: Cropping pattern in Moradabad District, 2003-04

Name of Crop Percentage Share of total

Paddy 25.24 Wheat 38.90 Barley 0.04 Jowar 0.10 Bajra 7.13

Maize 0.49

Total Cereals 71.90 Urad 2.24 Moong 0.09

Arhar 0.29

Gram 0.01 Other Pulses 0.93 Total Pulses 3.55 Total Foodgrains 75.45 Sugarcane 10.87 Potato 1.78

(Source-Statistical Bulletin–2006, District Moradabad, Statistical Diary, 2006, U.P., Economics and Statistics Division, State Planning Institute, Uttar Pradesh) Productivity of crops such as rice, wheat, barley, urad, and potato is high in the district.

Table 4: Average yield of the principal crops in the district: 2004-05 Name of Crop Yield (Quintal per hectare)

A. Cereals Paddy 23.60 Wheat 25.74 Barley 21.14 Jowar 10.00 Bajra 8.94

Maize 13.33

B. Pulses Urad 7.69 Moong 2.86

Arhar 7.99

Gram 9.23 C. Sugarcane 631.32 D. Potato 281.62

(Source- Statistical Bulletin–2006, District Moradabad, Statistical Diary, 2006, U.P., Economics and Statistics Division, State Planning Institute, Uttar Pradesh)

2.6 Livestock Population and Trends of the district

Table 5: Livestock status Livestock Total Non descriptive cattle (local 365897 low yielding) Improved Cattle and 60835 crossbred cattle Non descriptive buffaloes 609102 Descriptive buffaloes 261043 Goat 162916 Sheep (Indegenous + Exotic) 6041 Others (Camel, Yak, Pig) 1140380

Poultry Status Poultry Total Commercial 1 Farm with 50000 birds Backyard 92030 birds

2.7 Waste Generation in Moradabad The waste generated from the city includes household waste, commercial waste, bio- medical waste and industrial waste. Following are the major sources of generation of waste at city level: • Residential establishments, • Commercial establishments, • Hotels & Restaurants, • Bazaar and vegetable markets, • Industrial establishments, • Hospitals and dispensaries, • Slaughter houses, • Street sweeping, • Drain silt and • Construction debris

About 336 MT of solid waste is generated every day in the city, which comes out to be about 400 grams per capita per day. For the purpose of solid waste management the city is divided into 9 sanitary wards/circle. Presently there are 8 Sanitary Inspectors managing the sanitary wards.

The sector wise generation of waste is as follows:

Table 6: Waste Generation Details: Sector Waste in quantity Residential Area 95 MT/ day Street Sweeping 128 MT/ day Hotels/ Restaraunts/ Dhaba/ Guest Houses/ 28 MT/ day Banquets/ Marriage Halls Source: UP NEDA, 2010

2.8 Industry Profile

Moradabad district is rich both in agriculture produce as well as industrial output. It is world known for the brass work. Besides Brass, Moradabad also has several other handicrafts like - Jewellery made out of bones and horns, Kitchen ware, Combs and Wooden sticks 3. Printing on cloths is done at many places in the district, but development blocks like - Thakurdwara, Kanth and Amroha are the main centers. District administration has established a Handicraft Corporation depot in Thakurdwara. There are about 6000 people involved in the profession.

Apart from the brass and handicraft industries there are about 7182 other small scale industrial units, prominent among these are –  Mentha oil.

 Rice Mills

3 ibid

 Sugar Mills

 Cement and Building material

 Agricultural Instruments

 Animal Feed

 Brick kilns

 Oil Mills

There are about 44 units of Medium and Large Scale Industries, which includes Distillery, Sugar Mills, Pulp & Paper, Pharmaceutical & Chemical Industries etc. These industrial units provide jobs to about 40000 people.4 Recently other products like Iron Sheet Metalwares, Aluminium Artworks and Glassware's have also been included as per need of the foreign Buyers. Mentha is also exported in several crores from Moradabad. These products are very popular in foreign market and are being exported in thousand of crores every year. Due to increase of exports and popularity in foreign especially in Europe, America, Italy and other countries, a large No. of exporters are establishing their units and started their export. Moradabad exports goods worth Rs. 2200 crore every year. Out of the seven industrial corridors declared by the State Govt. in Industrial Policy 1999-2002, Moradabad is one of them.5

Brass Industry of Moradabad-

Moradabad is renowned for brass work and has carved a niche for itself in the handicraft industry throughout the world. The modern, attractive, and artistic brass ware, jewellery and trophies made by skilled artisans are the main crafts. The attractive brasswares are exported to countries like USA, Britain, Canada, Germany and Middle East Asia. There are about 600 export units and 5000 industries in the district.

In 2001, the export of different types of metal artefacts from Moradabad was close to Rs.4000 Crore (USD 1 billion6), whereas according to 2006 figures, the export has dropped to Rs.3000 Crore (USD 750 million). Artisans and small household brassware units have a major contribution in the inflow of this foreign exchange. Approximately 25,000 such units of the formal and informal sector are engaged in this industry.6

( Source - CSR Perceptions and Activities of Small and Medium Enterprises (SMEs) in seven geographical clusters Survey Report commissioned by UNIDO in the year 2008)

Factories represent the formal sector of the brass industry, while the household units form the bulk of the unorganized or informal sector. Almost 80-90% of the production is outsourced either to sub-contractors or small manufacturers called ‘karkhandars’. The sub contractors usually pass on the work to small household units or karkhanas. Such units are mainly involved in doing casting work. Karkhandars hire people to work on daily basis whereas they themselves get paid for the work by contractors on piece rate or weight basis. There is a variety of work done at these household units which ranges from casting.

4 http://moradabad.nic.in/Industry.htm

5 http://moradabad.nic.in/Industry.htm

6 http://www.unido.org/fileadmin/user_media/Services/PSD/CSR/CSR_ConsolidatedReport.pdf

18 moulding of brassware to ancillary works like polishing, scrapping, welding, grinding and engraving.

There are about 25000 such small units reported in Moradabad and each such unit employs minimum 4 persons. These units employ people in the range of 4 to 20 in numbers who get paid on daily basis. In turn the Karkhandar gets paid by the sub contractor on piece or weight basis.

Sugar Cane Industry

Uttar Pradesh is the largest sugar cane producing state of India and therefore one of the largest sugar producing states too. Moradabad district has about 13 sugar mills that together produce 18.03 Lakh Quintals of sugar annually. If the sugar mills in surrounding areas such as Rampur and J P Nagar are factored in, the total sugar production is 36.42 Lakhs Quintals annualls.

Besides producing sugar, Sugar Mills have huge potential for generating electricity by cogeneration7 method. The total availability of surplus bagasse from the millions without co- generation units is estimate at 38.60 lakh quintals. Of the 13 sugar mills in Moradabad district, only 4 have co-generation units. Therefore, on a conservative side, only 50% of the total surplus bagasse has been estimated as available for future co-generation projects that could potentially be set up in the district.

Case Study: Dhampur Sugar Mill Limited, Moradabad

Dhampur Sugar Mills Limited8 is a very old established Sugar Mill of Uttar Pradesh which is located in village Asmoli, Tehsil Sambhal of Moradabad district. The mill has a capacity of 9000 Metric Tonnes of Sugarcane per day, Distillery capacity of 1,00,000 litres per day and produces Sugar, Power, ENA, Ethanol, Rectified Bio fertilizer and By products like Molasses, Press Mud and Bagasse. In 1994, Dhampur was the first sugar company in India to start eco-friendly cogeneration at one of it’s units using Bagasse9, with a low project outlay as compared to conventional power plants. Conventionally, this was restricted to providing captive power in order to meet the energy requirements of the sugar factory. However, realizing the tremendous potential it had towards reducing the power deficit by supplying to

7 Cogeneration (also combined heat and power, CHP) is the use of a heat engine[1] or a power station to simultaneously generate both electricity and useful heat.

8 Website : www.dhampur.com; E-mail : [email protected]

9 BAGASSE, the residual fiber of sugarcane after crushing and extraction, is a valuable by-product generated during the sugar manufacturing process. It has high calorific value and is therefore used to generate steam and thereby electricity, which is a conventional thermal alternative and eliminates emission of green house gases. An additional benefit of using bagasse is that it is a renewable source of fuel and does not contribute to Greenhouse gasses as the sugarcane plantation consumes more carbon dioxide than that generated in burning bagasse.

19 the grid, the mill started contributing to the bio-energy effort undertaken by the country. Today, the Group’s combined co-generation capacity stands at 145 MW with 80 MW of grid interactive power.

Dhampur is the first in the world to install 105 kg.cm2 boiler and turbine in its sugar division, which has increased efficiencies in bagasse usage. Dhampur additionally installed energy saving devices which would further increase bagasse savings. This saving would enable the company to run its power plants without external bagasse purchases. Power generation in non-sugar season as well, will result in consistent cash inflows.

Dhampur was the first sugar company in Uttar Pradesh, which was allowed export of power under ‘Open Access’ (during off-season), from 1st October, 2009, resulting in higher realizations.

India one of the leading sugarcane producers in the world realizing the potential of bagasse, a by-product of the sugar industry, for power generation, has come up with various programs and incentives to boost the sector. India produces nearly 40 million metric tonne (MMT) of bagasse, which is mostly used as a captive boiler fuel other than its minor use as a raw material in the paper industry. Sugar mills in the country especially in the private sector have invested in advanced cogeneration systems by employing high pressure boilers and condensing cum extraction turbines. These sugar mills have been able to export power in the season as well as in the off-season by using bagasse or any other locally available biomass and to some extent coal. Off-season operation has been more lucrative by exporting power which otherwise earlier was non-existent except some operation and maintenance work. High technology has made these sugar mills efficient by improving the economic viability of the mills in terms of higher production of units of electricity per unit of bagasse.

2.9 Electricity Sector Overview of Moradabad:

Moradabad comes under the area of Paschimanchal Vidyut Vitran Nigam limited. PVVNL came into existence in July, 2003 as subsidiary company of UPPCL. PVVNL covers in its jurisdiction the areas of District Meerut, Baghpat, Ghaziabad, Gutambudh Nagar, Bulandshahar, Muzaffarnagar, Saharanpur, Bijnor, Moradabad, J.P. Nagar and Rampur.

The Peak electricity demand of Moradabad is around 240MW which is being met from different Central/State generating stations. The district of Moradabad has 63 MW Renewable energy generating capacity of its own including captive consumption of various industries in the region.

The connected load of the Moradabad is reported as 203.093MW; while the maximum demand is approximately 240 MW. The connected load of public lighting has been reported as 4.421 MW.

The per capita consumption of electricity of the entire district is currently 400 kWh, while for Moradabad city, it is 480 kWh. There has been a steady increase in the percapita consumption of electricity in the district, from 300 kWh in 1990-91 to the current level of 400 kWh, while for Moradabad city, the per-capita consumption has increased from 361 kWh in 1990-91 to the current levels of 480 kWh.

The major energy consuming categories are residential, commercial/institutional (offices and shops), municipal services, industrial and transport as far as the city is concerned, while for the rural areas, it is primarily lighting load with a small quantum of electricity being used for irrigation pumpsets.

In the energy baseline study, all the above sectors except transportation have been considered. Within the selected sectors i.e. residential commercial and municipal services, the major energy sources are electricity, LPG and Kerosene. The petroleum products are mainly used in transportation sector followed by industries and a small quantum is used for lighting purposes to supplement electricity supply in rural areas and for meeting the requirement of irrigation pumpsets.

2.10 Overview of electricity consumption pattern:

Figure 2: 5 years Annual Electricity Consumption Trend, Moradabad

The last eight years, the total electricity consumption of the district has increased from 298.87 Million Units as on 2004- 05 to 487.12 Million Units as of 2011- 12. This is clearly shown in the figure alongside. Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

Correspondingly, the number of consumers connected to the grid has also increased substantially over the last five years, particularly, in the domestic consumer category.

Figure 3: Consumer Wise Electricity Consumption In Mordabad city, the largest consumers and consumption of electricity was the Domestic sector, consuming a total of 74% of the total electricity distributed for the city. The commercial sector followed a far second, recording just 8% of the total electricity consumption, followed by Heavy and Small industries, each consuming 5% of the total electricity distributed for the town, while the others, which includes the public lighting and water works and government buildings consumed the balance of 8% of electricity consumed in the town

Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

The situation in the whole of the district also was similar, though, the agricultural sector, particularly for irrigation, consumed a total of 4% of electricity, while the medium industries, which are largely rice mills, sugar mills etc, consumed a total of 4% of the electricity consumption of the district.

Figure 4: Category Wise Electricity Consumption Pattern in Moradabad District, 2011

Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

2.10 Other energy consumption patterns and overview:

The other energy consumption in Moradabad are primarily:

a) Coal, predominantly used by the Brass Industry for making brass handicrafts b) Diesel for transportation and as back up power primarily for the domestic industrial activities such as polishing, brazing etc. c) Kerosene is largely used as a back up for lighting in Moradabad town, while it is used predominantly for lighting in unelectrified households in the rest of the district d) LPG is primarily used for cooking in Moradabad city and towns within the jurisdiction of the district e) Firewood is the predominant cooking fuel in rural households of Moradabad district.

A detailed consumption pattern for each of the other energy consumed is given in the next chapter.

CHAPTER – 3

DETAILED ENERGY CONSUMPTION PATTERN OF MORADABAD DISTRICT

3.1 A Bird’s Eye View of Electricity Consumption Pattern of the district as a whole

The district’s electricity consumption has grown steadily over the last 8 years, with an average annual increase of consumption being in the region of 50-75 Million units.

This is largely due to an increase in the consumption pattern of the residential sector and in the last 3 years, due to increase in the number of industries that have been set up in the district.

The district being one of the largest base for brass handicraft industries has also contributed to an increase in the electricity consumption pattern, primarily due to increase in exports of the brass handicrafts.

The following figure, gives an broad overview of the district’s annual electricity consumption over the last 8 years.

Figure 5: Last 8 years Electricity Consumption Trend of Moradabad District

Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

3.2 Domestic Electricity Consumption pattern of Moradabad District.

The residential sector of Moradabad is the major consumer of electricity with a consumption of approximately73% of the total electricity distributed in the district. The residential sector comprises of not just domestic consumption but a number of home industries, particularly brass and sheet metal industries also enjoy domestic electricity supply. These include small polishing units, units which perform specialized functions such as punching, threading, drilling, electroplating etc. These home industries typically use 1 or 2 small machinery which range from 1 Horse Power to 2 Horse Power capacity. These use domestic connection.

According to a survey done by the Moradabad Nagar Nigam, of the total of 150,000 houses in the Moradabad city, approximately 90 percent of these are permanent dwellings, while 7 percent are semi-permanent structures and only 3 percent of these are temporary houses.

However, the situation in the rest of the district, particularly in rural areas is not the same. In rural Moradabad, 70% of the houses are kutcha houses, while 30% of them are pucca or permanent structures.

It has been noticed that residential sector comprises 76.12 percent houses of the city followed by 8.65 percent by commercial category and 6.3 percent by industrial category. Remaining houses are used for school & colleges, hospitals & dispensary, hotel, lodges, guest houses and place of worship.

The residential houses of the Moradabad city are almost fully electrified, though there are conflicting views on hours of supply. While residents in certain localities claim, that power outages range from 8-10 hours a day, the electricity board officials claim that there is only a 4 hours power scheduled power outage, which may go up to 6 hours during peak summers.

In rural areas, there are 406 unelectrified villages and close to 40 percent of the rural households do not have access to electricity.

Despite all of this, the domestic sector of Moradabad is the highest consumer of electricity and this has been growing steadily over the last 8 years.

Figure 6: Last 8 Years Electricity Consuimption Pattern in the Residential Sector

Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

The Electricity consumption pattern of the domestic sector, indicates that there is a substantial consumption of electricity for Lights, television and small appliances such as mobile chargers come next with a total consumption of 38%, with space cooling (fans, air- conditioners, desert coolers) coming a close second, together constituting a consumption of 30% of electricity.

This ofcourse is the combined picture of rural and urban Moradabad.,

Figure 7: Electricity Consumption Pattern in the Domestic Sector

Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

The rural consumption pattern of electricity is different, with lighting consuming close to 65% of the total electricity, followed by irrigation pump sets, which consume 20% of electricity and all other appliances including fans, consuming 15% of the total electricity consumed.

In terms of appliance purchase and usage a survey with some appliance shops indicate that most people tend to purchase non-star rated appliances, as they are cheaper. However, over the last five years, people have started to purchase energy efficient lighting appliances. Though fans, air-conditoners, desert coolers and other appliances are predominantly unstar or energy in efficient appliances.

Even the lighting sector has immense potential to shift to energy efficient sector, by almost 30%.

3.3 Electricity Consumption Pattern of the Commercial Sector of Moradabad:

The Commercial sector of Moradabad is largely shops that sell bronze artifacts, export houses, and other business and commercial establishments.

By and large, the commercial sector has been fairly prudent in its electricity consumption patterns, largely due to the saving potential by way of electricity bills. Most commercial establishments have opted for energy efficient lighting systems, whether it is CFL to Slim and Electronic Tube Lights.

Most of the commercial establishments are also noticed to minimize the use of air- conditioners and space cooling appliances and use it only when necessary.

The percapita electricity consumption pattern of the commercial sector makes very interesting study, at the consumption has steadily reduced in the last three years, despite the increase in the number of consumers.

Figures 8 and 9 give an overview of the steady rise in the number of consumers and connected load, while showing a stead decline in the total consumption of electricity, which indicates, lower consumption of electricity by individual business estalbishments.

Figure 8 and 9 (Number of Consumers and Total Electricity Consumption of the Commercial Sector

Source: Paschimanchal Vidyut Vitran Nigam limited, 2012

Likewise, the percapita elelctricity consumption of the commercial segment which was in the region of 2000 kWh as on 2007-08, as of 2011-12, was in the region of 1200 kWh.

3.4 Electricity Consumption Patterns and Trends in the Large and Medium Industry category:

As on 2011, there were 13 large and medium industries registered in Moradabad, which primarily were large sugar mills, large foundaries and Brass Units that manufactured brass artifacts for the export market. sugar mills in Moradabad have their own co-generation unit which is both grid interactive as well as for captive use.

The electricity consumption in the large and medium industry put together accounts to 5% of the total electricity consumed in the district.

Since the industry categories in Moradabad are not covered under the Bureau of Energy Efficiency’s Perform Trade and Achive (PAT) scheme, the energy efficiency potentials of these industries or units has not been assessed.

However, considering that the general trend in the brass industry is follow the conventional furnace system, there is a potential for saving of energy to the tune of 15 to 20 percent.

3.5 Electricity Consumption pattern and trends in the Small Industries Segement

The small industries largely comprises of bronze handicrafts units, small food processing units, such as rice mills etc and other odds and ends home untis such as textiles, repair units and so on.

The brass industry has a number of specialized operations and normally, these operations are independently undertaken by small units. These operations include, polishing, smoothing and threading, electroplating, cutting the edges, drilling and punching operations amongst others.

Most of these are either performed under one roof or performed as independent units, which is mostly the case in Moradabad. There are very few units which have all oeprations under one roof.

Since most of these units with the exception of electroplating which would perhaps require 5- 10 HP of power, use anywhere between 1 and 2 HP power, usually tend to use domestic power supply.

Therefore, while technically the small industries consumption of electricity is just around 5% of the total electricity consumed in the state, translating to roughly 25-30 Million Units per annum, much of their consumption gets into the domestic electricity consumption category.

So rough analysis indicate that the small and home industries segment consume roughly 80- 90 Million units per annum, as on 2011-12. This has been growing at a stead rate of 7% per annum over the last five years, though, the quantum of electricity usage from 2008-09 has not increased as in the previous years, due to a huge price increase of base material such as brass from Rs. 80/- for a slab of brass to Rs. 280/- for a similar slab. This has led to a fall in the demand for brass marginally and thereby the production has also reduce slightly.

3.6 Overview of the Electrticity Consumption of Government and Public Buildings of Moradabad District:

The Government and Public Buildings which include Government Schools and Colleges consumed close to 4% of the electricity consumed in the district, which accounts to an average of 30 Million Units per annum. This does not include Municipal Street Lighting, Village Street Lights and Public Water works, but only electricity consumed in Government and Pulbic offices and establishments.

Most of the office buildings are in Moradabad city with a few field centres and sub-divisional offices in the sub-divisions. There are also Panchayat Buildings and Government schools and colleges in Moradabad district.

The major consumption of electricity in Governmetn buildings is largely for lighting and fans with some consumption of electricity for air-conditioning and room heating for winters.

By and large, most office buildings of Moradabad have not completely shifted to energy efficient lighting, though, light fittings which were fixed recently are near energy efficient. Most of the other office appliances like air-conditoners, room heaters, fans are not energy efficient.

3.7 Overview of Electricity Consumption for Street Lighting and Public Water Worls:

Public Water Supply

The main water supplyto Moradabad town is by way of tube wells and for other areas is a combination of tube wells, open wells and other public water sources. The tube wells in village areas have hand pumping systems.

For Moradabad town, there are a number of water pumping stations which are under the Nagar Nigam. The total connected load for these water pumping systems is around 1300 kW.

The City also has a water treatment plant, which is primarily to soften the hard water.

The motors used for pumping water are usually bosster pumps to ensure piped water supply for the city.

Most of the motors used in is around 12. 5 Horsepower, though for booster pumps, they also have large horsepower betweent the range of 50-90.

The total energy consumption for water supply for Moradabad district in 2011-12 was roughly 23 Million units and this has been the average consumption of electricity for the period 2008-2012.

Street Lighting:

The total consumption of electricity for street lighting for Moradabad town in 2011-12 was around 17 Million Units and for the entire Moradabad district was around 19 Million units.

The street lighting systems of Moradabad town is managed by the Nagar Nigam, while it is with the district administration for maintaining the street lights for the rest of the district.

There is a huge potential for implementing energy efficiency in the municipal street lighting segment, as the town conitues to have substantial number os sodium vapoour lamps and energy in-efficient tube lighting fittings.

A rough estimate indicates that close to 3 Million units of electricity can be conserved by converting all the street lights to energy efficiency lighting systems.

3.8 Detailed overview of other Energy Consumption pattern of Moradabad District:

The following table gives an overview fo the diesel, kerosene and petrol consumption of Moradabad district.

Figure 10: Other Energy Consumption Pattern, Moradabad District, 2012

Source: Data from Oil Companies and District Food and Civil Supplies Department, 2011 31

As can be seen from the graph above, the usage of Kerosene has marginally dropped between the year 2005-06 and therafter. This is primarily due to the Rajiv Gandhi Rural Electrification programme. However, it may be noted, that the usage of Kerose has only marginally dropped, which indicates a continued usage of Kerosene, which is largely for lighting purposes. However, as per the Rajiv Gandhi Grameen Vidytikaran Yojana, there are 406 villages in Moradabad district where rural electrification process is still being carried. These are a combination of electrified villages or de-electrified villages, for which re- electrification is being carried out. 10

There has been a steep increase in the usage of Petrol and Diesel from 2006-07 onwards. This is largely due to the increase in exports and industrial development in the district. Diesel consumption has been more or less static from 2007-08. It must be notes here that the use of diesel in 209-10 and 2010-11 has shown a slightly more upward trend, largely due to its increased usage in the brass industries, due to increased power outages.

LPG

LPG is largely used in Moradabad town and is the primary source for cooking. The number of connections fo LPG gas has been growing at approximately 6% over the last five years.

However a vast majority, close to 90 percent of the LPG connection are in urban pockets of Moradabad town and other tehsil head quarters, while a small percentage of LPG connection are in few rural pockets, which are close to the towns. Figure 11 below, gives the growth rate of LPG over the last 7 years

Figure 11: LPG Growth Trend over the last 7 years

Source: Food and Civil Supplies Department and information collected from Gas Agencies

10 http://rggvy.gov.in/rggvy/rggvyportal/dcovered.jsp?stcd=09

The growth of number of LPG sold in the year 2009-10 and 2010-11 has remained static, largely due to the new rule of the Government of India, restricting one cylinder per family. Therefore, while the number of new connections have increased, in terms of absolute numbers of cylinders sold, the growth seems static.

Coal Coal is another fuel which is the main source of fuel for the brass industry. Depending on the size of the foundry, on an average anywhere between 30 Kgs to 200 Kgs of coal is consumed, primarily in the moulding process.

For a small industry which produces close to 50 Kgs of brass artifacts, the consumption of coal is roughly 30 Kgs. The larger export oriented industry use a combination of coal and furnace oil and they use roughly 200 Kgs of coal/furnace oil a day.

As per 2010, there were close to 25000 organised and unorganized brass industry, with the unorganized sector, largely in the home industry category. The home industry usually operates with one challah or a melting furnace, which is approximately 40-70 Cm wide and 15-60 cm deep. The ones which are 40 cm wide and 15 cm deep, is usually able to produce 50 Kgs of aritifacts a day, while the one which is 70cm wise and 60 cm deep, is able to produce close to 80 Kgs of artifacts a day.

Since the furnace is used for melting copper and zinc, the temperature in the furnace is in the reigon of 950C.

While there is no exact figure of much coal is used, it is estimated that the daily consumption of coal would be in the region of 250 tonnes every day. This is arrived on the basis of assuming that 5000 units were primarily foundry units that consumes an average 50 Kgs of coal per day.

Firewood Moradabad has a total of 1559 habited villages. Most of the households in villages do not have access to LPG or prefer not to have LPG connection due to costs. They most depend on fire wood for cooking purposes. It is estimated that on an average, a household requires 10-15 Kgs of fire wood every day, which increases in winter months.

3.9 Case Studue of the Brass Industry and its Energy Consumption Pattern:

Brass Lamp Moulding Unit, Netaji Colony, Moradabad

A small Brass Lamp Moulding Unit shows a daily consumption of 50 kgs of raw material (brass) for making brass lamps. Lamps are made by putting hot molten brass into required moulds and the whole mould is then completely covered with mud. After some time the mould is opened and the structure taken out and cleaned. A coal furnace is used to melt the metal and on any routine day such a furnace consumes about 30 kgs of coal. Such a unit usually employs 3 artisans. Total coal consumption in such a unit over a period of a month comes to around 780 kgs costing about Rs. 23000/- .

Discussion with women’s group at Netaji Colony

Netaji Colony is a very densely housed unplanned settlement largely inhabited by families belonging to low income group. The settlement does not have proper roads, lanes, drainage system, provision for waste management, and looks largely uncared for. The houses usually are very small with very poor ventilation, the reason being that the houses are built in a very congested manner in haphazardly laid lanes and by lanes. 33

Discussion with a group of women living in Netaji Colony reveals that almost all the houses in the locality have metered connection for electricity and households usually have about 2 fans, CFL for lighting, cooler, a TV and an inverter too. Some houses also have washing machine. Women lamented the fact that there is a lot of power cut that interrupts normal daily working. As informed by the group the power cut usually occurs in 3 slots – 3 am to 5 am; 10 am – 3 pm and 9 pm till 1 am. On an average each household spends about Rs. 1000/- on electricity per month. The groups seemed highly dissatisfied with this and complained that when they are not getting electricity during crucial working hours why are they being charged such a huge amount.

Women in the group shared their desire to learn some skill and take up some home based work but considering the fact that the day time is usually spent in near dark situation in the absence of electricity supply, they are unable to take up such work from home.

Fact Sheet of the Brass Industry:

Principal Products Manufactured in the Brass Ware Cluster Moradabad Cluster Name of the SPV Moradabad Scrap Recycling Ltd. No. of functional units in the clusters 25,000 (5000 Small & 20,000 Micro) Turnover of the Clusters Estimate turnover 3500 crore Value of Exports from the Clusters 2700 Crore Employment in Cluster 3,50,000 Average investment in plant & Machinery 675 Lakh Major Issues / requirement Lack of appropriate technology in metal scrap to convert into ingot ,which is the raw material for Brass Art ware casting. Presence of capable institutions There are many departments of Central & State Govt. to support the artisans of the cluster-

• Handicrafts Marketing & Service Extension Center, Bareilly O/o The Development Commissioner (Handicrafts), Ministry of Textiles, Govt. of India • District Industries Center, Moradabad • District Rural Development Authorities • State Urban Development Authorities • NABARD

Thrust Areas Technology/ Product/ Market/ Export/ quality etc. Problems & constraints • Highly Unorganised Cluster with a a large number of independent units all competing with each other • No design and technology intervention • No Support from Technology Institutions. • Tech. to remove impurities in raw material • Inability to meet large No. of quantity to meet export orders due to poor & obsolete Tech. • High Cost Production • Value addition is not very well done due to proper knowledge 34

Areas where improvement thrust is  Conversion of the traditional furnace which is required energized by coal to bio-mass based furnace  Solar Energy in a cluster for polishing units  Solar Energy for other process units which use machinery capacity from anywhere between 1- 5 Horse Power

CHAPTER – 4

SOURCES OF ELECTRICITY SUPPLY

4.1 Sources of Electricity Supply for Moradabad District:

The district receives its electricity to a total of 43 substations which power the entire Moradabad Circle. The Moradabad electricity circle comprises of three subdivisions and each of the subdivisions have the following power stations.

Table 8: Details of Substation receiving power to Moradabad

Sl. No. Name of 33/11 KV Nos. of T/F Total Sub-Station Installed Capacity (in MVA) (in MVA)

132 KV, Manjhola 2×5 1 10 (66/11) 2 132 KV, Manjhola 1×5 5 3 Sitapuri (37.5) 2×10 20 4 Transport Nagar (37.5) 1×5 5 5 Pital Basti (37.5) 2×10 20 6 Deihi Road 5+10 15 7 Mandi Smati 2×5 10 8 Taxi Stand 1×8 8 9 Galshahid 2×10 20 10 Katghar 2×5 10 Total Capacity 123

Sl. No. Name of 33/11 KV Nos. of T/F Total Sub-Station Installed Capacity (in MVA) (in MVA)

1 Town Hall 2×8 16 2 Doulat Bagh 3×5+3 18 3 Jigar Colony 2×5 10 4 PTC 2×5 10 5 MDA 2×5 10 6 Vivakanand 2×5 10 7 GIC 2×5 10 8 Loco Shad 2×5+3 13

9 Pili Kothi (Proposed) 1×8 8

Total Capacity 105

Sl. No. Name of 33/11 KV Nos. of T/F Total Sub-Station Installed Capacity (in MVA) (in MVA)

1×3 1 Ratanpur (37.5) 3

1×3 2 Taharpur (37.5) 3

1×3 3 Mainather (37.5) 3

4 Growth Center 1×5 5 5 Choudrpur 2×5 10 6 Agwanpur 2×5+1×3 13 7 Bhikanpur 3+5 8 8 Kanth 5+5 10 9 Dalpatpur 1×5 5 10 Garhi 2×3 3 11 Bilari 5+8 13 12 Kundarki 3+5 8 13 Safilpur 3+5 8 14 Sahaspur 1×5 5 15 Thakurdwara 2×5 10 16 Surjannagar 1×3 3 17 Jhangirpur 1×5 5 18 Dilari 1×3 3 19 Shyoudara 1×3 3 20 Darni 1×3 3 21 Budanpur (Proposed) 22 Pepalsana (Proposed) 23 Nanpur (Proposed) 24 Jargoan (Proposed) Total Capacity 124 Source: PVVNL, 2012

The sources of power supply is varied, though, it is largely from coal fired power plants, which supply power to the PVVN thorugh the Uttar Pradesh Power Corporation Limited (UPPCL)

The district also has 63 MW of renewable energy generating capacities of its own which includes electricity generation for captive consumption of various industries in the region. These are primarily co-generation from sugar mills and a few wood based boilers which are primarily for captive consuimption.

4.2 Supply – Demand Gap:

The Peak electricity demand of Moradabad is around 240MW which is being met from different Central/State generating stations. At present, the city is receiving its power through Uttar Pradesh Power Corporation Ltd (UPPCL). The connected load of the Moradabad is reported as 203.093MW; while the maximum demand is approximately 240 MW.

For the district as a whole, the connected load is apprxomately 250 MW, while the maximum demand is 300 MW.

So, on an average, the town of Moradabad faces a peak supply deficit of 40 MW, while it si 50 MW for the entire district.

CHAPTER – 5

RANGE OF GREEN ENERGY TECHNOLOGIES AND CONVERSION OPTIONS AVAILABLE

5.1 Full Range of Green Energy Technologies and Conversion Options available

SL. APPLICATION AVAILABLE TECHNOLOGIES, Costs Status of DEVICES Application 1. Cooking and  Use of Improved chulhas Rs. 1000 All of these associated  Use of biogas plants Rs. 15,000 are mature domestic activities  Use of pressure cookers Rs. 1000 technologie  Use of high efficiency burners Rs. 1000 s, tried and with LPG tested and  Use of solar cookers Rs. 2000 available in  Use of solar water heaters Rs. 14,000 the market  Use of rice husk for challahs easily Rs. 1/- a Kg 2. Domestic Lighting  Move from kerosene to All of electricity these  Move from incandescent lamps Rs. 75 to are to fluorescent lamps/CFL/LEDs Rs. 500 mature  Electronic ballast in place of Rs. 50/- technolo electro-magnetic ballast. gies, tried and tested and availabl e in the market easily 3. Irrigation  Move from diesel pumpsets to Rs. 2000/- Mature electric motor pumpsets. technologie  Rectifications of existing pump Rs. 500/- s available set installations for improved efficiency and energy conservation.  Biomass gasifiers based pumping systems.  Water pumping windmills.  Solar PV pump sets.  Biogas based pumping systems.  Use of UPVC and HDPE pipes.  Improved pipe bends having low friction and bend losses. 5. Industry and  Improved biomass conversion Artisans systems for thermal energy 39

needs.  Increased availability of electricity.  Small rice-husk or baggase based /gasifier systems for furnace  A complete range of technologies and devices based on various renewable resources.

7. Basic  Increased rural electrification amenities/facilities facilities in case unelectrified District/remote hamlets to cover all basic amenities, the following are applicable:  PV street lights  PV powered TV sets/radio  PV pumpsets for drinking water supply.  Biomass gasification systems.  Solar water heating system.  Solar stills for water purification.  Community solar cookers for mid day meal schemes.

8. Power generation  Biomass gasifiers options  Biogas engine-gensets.  PV power mini-grids/ Home Lighting systems/ Solar Thermal Applications/  Small hydro power plants 9. Renewable  Biogas generation resource

CHAPTER-6

RENEWABLE ENERGY POTENTIALS FOR MORADABAD DISTRICT

6.1 Solar Radiation- Grid and Off-grid solutions and applications

Uttar Pradesh has high solar potential, as it is endowed with high solar radiation with around 300 days of clear sun. With radiation in the range of 3.5 to 4.5 kWh/ sq. meter, the state presents several ideal locations for installing solar based power projects. The map of India below shows the solar potential.

Figure 12: Map of India, indicating solar radiation levels across the country

Moradabad is one such place which has a average to good solar radiation rates as is indicated in the figure below.

Figure 12: Monthly Solar Radiation Levels in Moradabad District:

Table 9: Daily and Monthwise Solar Radiation Levels for Moradabad district:

As can be seen from the graph and table above, the solar radiation levels for Moradabad district, range from a low of 3.5 kWh/m2 to a high of 6.5 kWh/m2. This indicates a very huge potential for Solar Systems, whether it is Photovoltaic based or CSP based systems.

6.2 Bio-Sources:

The total bio-mass power potential for Moradabad district has been estimated to be 49.2 MW11 which is based on agriculture – soft bio-mass and forests and waste land – woody bio- mass.

Table 10: Taluk-wise Biomass Data - State : Uttar Pradesh ; District : Moradabad ; Year : 2000-04 ; Considering All Biomass Class : All

Crop Biomass Biomass Power Area Biomass

Taluk Production Generation Surplus Potential

(kHa) Class

(kT/Yr) (kT/Yr) (kT/Yr) (MWe) Asmoli 52.8 1497.4 220.4 39.1 5.3 Agro Forest & Bahjoi 0.058 NA 0.079 0.053 0.007 wasteland Bahjoi 0.31 0.18 0.33 0.064 0.008 Agro Bania khera 3.69 3.92 9.7 1.96 0.25 Agro Bhagtpur tanda 2.20 6.8 12.3 2.10 0.28 Agro Bilari 17.3 39.6 67.4 21.2 2.48 Agro Chhajlet 1.65 3.67 6.8 1.16 0.16 Agro Forest & Dilari 0.24 NA 0.33 0.22 0.031 wasteland Dilari 70.7 181.7 319.3 69.5 8.8 Agro Kundarki 0.20 0.45 0.79 0.14 0.019 Agro Forest & Moradabad 0.50 NA 0.67 0.45 0.063 wasteland Moradabad 21.1 51.0 89.2 22.9 2.79 Agro Munda pandey 31.9 204.8 140.5 31.7 3.97 Agro Forest & Pavansa 0.39 NA 0.53 0.36 0.050 wasteland Pavansa 122.5 2304.3 491.6 108.3 13.8 Agro Sambhal 46.9 96.4 191.7 34.4 4.54 Agro Thakur dwara 49.5 135.1 237.5 53.8 6.7 Agro Total 421.9 4525.3 1789.2 387.5 49.3 Agro-Total 420.7 4525.3 1787.6 386.4 49.2 F & W-Total 1.19 0.000 1.61 1.08 0.15 Source: bio-mass atlas data prepared by Indian Institute of Science (http://lab.cgpl.iisc.ernet.in/atlas/Tables/Tables.aspx

11 Source: Bio-mass atlas data of Indian Institute of Sciences and cross checked with the agricultural productivity pattern as on 2011-12.

6.3 Bio-Gas Potential estimates:

Cow Dung to Gas Conversion:  1Kg of Cow Dung can generally produce 1.4 Cubic feet (Cft) of gas

Average Gas Requirement per adult:  10 Cft of gas per day for 3 times cooking

Average Dung Yield per Cow:  Low Cows: 10-15 Kgs per day or 5 Kgs if it is only night dung  Bullocks: 15 Kgs per day, or 6-7 Kgs if is only night dung.  Buffaloes: 15-18 Kgs per day. 6-7 kgs if it is only night dung  Jersey Cows: 25 Kgs per day (if fed with cow feeds etc)

Average Gas requirement per family:  50 to 70 Cft for a family between 5 and 7 members  30-40 Cft for a family of 3-4 members

Average Cow Dung required per family per day  35-50 Kgs of cow dung for a family of 5 and 7 members  21-30 Kgs of cow dung for a family of 3-4 members  Roughly 7Kgs of cow dung to produce gas for cooking 3 meals for an adult per day

The biogas potential for Moradabad district is calculated in the below chart

Table 11: Bio-gas Potential for Moradabad District:

Dairy Animal Populatio Estimated Assumin Average Average Potential Population n Dung g only Gas Gas Number (2005) (In Yeild Per 30% of Yield Per Requirem of Numbers) Annum the dung Annum ent per Househol (Assumin is househol ds that g only available (In Cubic d per can have night for bio- Feet) (In year Bio-gas dung) gas Tonnes) (in Cubic plants (In generati Feet) Tonnes) on (In (in (In Tonnes) Numbers) Tonnes) Local Low Milk 365897 667,762 200,328 143,091 25.55 5600 Yielding Cows Improved 60835 222,047 66,614 47,581 25.55 1862 Cattle and crossbred cattle 44

Local 609102 15,56,255 466,876 333,482 25.55 13,052 buffaloes Crossbreed 261043 11,43,368 343,010 245,007 25.55 9,589 buffaloes Total Number 30,103 Households of Households that can be (Thirty Thousand, one hundred and three households) supplied with Bio-Gas per annum Source: Animal Population Data from Animal Hunsbandry Department and calculation based on thumb rule estimation.

However, if the bio-gas can be converted to a combination of electricity generation with gas, a total of 5 MW of electricity can be generated, in addition to providing gas to 20,000 households.

6.4 Co-Generation potentials from Sugar Mills

Uttar Pradesh is the largest sugar cane producing state of India and therefore one of the largest sugar producing states too. There are 150 sugar mills in Uttar Pradesh, of which 13 sugar mills are in and around Moradabad district itself. The total sugar produced in just Moradabad district is close to 18.03 Lakh quintal per annum. However, if the sugar mills in surrounding areas such as Rampur and J P Nagar are factored in, the total sugar production is 36.42 Lakhs Quintals annualls.

Besides producing sugar, Sugar Mills have huge potential for generating electricity by cogeneration12 method.

The total availability of surplus bagasse from the millions without co-generation units is estimate at 38.60 lakh quintals. Of the 13 sugar mills in Moradabad district, only 4 have co- generation units.

Assuming that only 50% of the surplus bagasse is available for co-generation, this accounts to 11 Lakh Quintals of baggase per year.

With 110,000 Tonnes of surplus bagasse available per annum in Moradabad district alone, this would sufficint to generate 15 MW of power during season for both self consumption as well as supply to the grid.

6.5 Potential for Micro-Hydel Energy Generation for Moradabad:

The district of Moradabad lies within the great Gangetic plain and is demarcated into three subdivisions by the rivers Ramganga and Sot. The eastern tract consists of a submontane country, with an elevation slightly greater than the plain below, and is traversed by numerous streams descending from the Himalayas. The central portion consists of a level central plain

12 Cogeneration (also combined heat and power, CHP) is the use of a heat engine[1] or a power station to simultaneously generate both electricity and useful heat.

45 descending at each end into the valleys of the Ramganga and Sot. The western section has a gentle slope towards the Ganges, with a rapid dip into the lowlands a few miles from the bank of the great river.

The river Ramganga has a mean annual flow of 17789 BCM13, as per the status report of the Ganga, which is available on the website of the Ministry of Environment and Forests.

In a recent study conducted by the Uttar Pradesh New and Renewable Energy Development Agency to identify potential micro-hydro sites, one of the sites investigated for setting up of a micro-hydro include the Ram Ganga Canal, on the river Ram Ganga, between the districts of Moradabad and Bijnor. The potential for generation of electricity estimated at that site was 8000 kW or 8 MW.14

Further, there have been a number of identified sites on the Upper Ganga River Basin, which are as follows:

1) Upper Ganga Canal Project with a potential for 4 MW in Bulandshar district, 2) Upper Ganga Canal Project with a potential of 11 MW in Meerut District 3) Upper Ganga River in Gaziabad district, with an estimated potential of 20 MW 4) Ram Ganga Basin Project at Bijnor district, with an estimated potential of 8 MW

These projects when commissioned would have a total installed capacity of 43 MW and would benefit the districts of Meerut, Gaziabad, Bulandshar, Moradabad and Bijnor district.

The estimated share of electricity for Moradabad district could be 8 MW from the micro-hydel projects.

6.6 Electricity Generation Potential from Stand Alone Renewable Energy Systems:

1. Roof Top Solar:

Moradabad city is one of the cities earmarked under the “Solar City” programme of the National Solar Mission and is likely to be taken up under the Phase – II implementation plan of the “Solar City” slated for the period 2012-2017.

As per the Solar City Programme, it is proposed to install roof-top solar systems on Government and Public Buildings and select commercial buildings.

A survey conducted by the Moradabad Nagar Nigam, indicates that installing solar roof top systems on just the Commissioners Office , Town Hall and the Moradabad development Authority alone can have an installed capacity of 100 kW.

Further, in Moradabad city alone, there are 106 schools15, of which, 15 are Government schools and establishment. The Nagar Nigam estimate for potential roof top system on these schools is roughly 100 kW.

13 http://www.moef.nic.in/downloads/public-information/Status%20Paper%20-Ganga.pdf

14 http://neda.up.nic.in/programmes/MHPROG.pdf

15 Statistical Department, Moradabad

So, roof top solar systems alone can generate close to 200 kW in Moradabad city alone, which is a very conservative estimate.

However, for the entire district, the total number of Government buildings in Moradabad district account to 85. The Moradabad Nagar Nigam in association with the Uttar Pradesh New and Renewable Energy Department has estimated the total potential for total roof top generation from Government and Public Buildings to be 396 MW or 0.72 Million units of electricity per year.16

6.7 Waste to Energy Generation Potential for Moradabad District:

In Moradabad city alone 400 tones of MSW is generated per day, while the figure for the rest of the district is estimated to be in the region of 550 tonnes per day.

It is possible to convert 30% of the total MSW into refuse derived fuel, which then can be converted into electricity.

Further, every 1 MW of electricity generation from waste, would required 28 tonnes of refuse derived fuel.

Assuming that out of the total of 550 tonnes of MSW, 165 tonnes of refused derive fuel is available, the total electricity capacity of the waste to energy plant for Moradabad is estimated to be 5 MW.

However, transporting MSW from across the district might be difficult and hence in the first phase, it would make sense to have a waste to energy plant only for Moradabad town.

Given that the town generates a waste of 400 Tonnes day, and of which 120 tonnes is available as refuse derived fuel, the installed capacity for a generation plant from waste to energy for Moradabad is estimated to be 4.2 MW

16 Uttar Pradesh Renewable Energy Development Agency estimate for roof top solar

6.8 Summary of Renewable Energy Generation Potential for Moradabad District:

The district has huge potential for solar generation and this alone can not only meet the district’s electricity requirements but also potential to export electricity to other districts as well.

The other key potentials for renewable energy generation for Moradabad is:

Bio-mass: 49. 2 MW

Co-generation: 15 MW

Roof-Top Solar: 396 MW

Micro-Hydro: 8 MW

Bio-gas Electricity Generation: 5 MW

Waste to Energy Generation: 4.2 MW

Total: 477 MW

CHAPTER-7

ENERGY EFFICIENCY POTENTIALS FOR MORADABAD DISTRICT

7.1 T & D Loss Reduction:

The current Transmission and Distribution loss as per the data of the PVVNL is in the region of 24% per annum. The losses are largely distribution losses, with technical losses in the region of 10%. The distribution losses are primarily by way of theft and the use of domestic electricity or domestic connected load for home industries. There is an ample scope to bring down the distribution losses to zero and to also reduce the technical losses marginally. With a proper demand side management programme, the losses can be brought down to 10% in the first year itself.

So, the current electricity demand for Moradabad district is 480 kWh. However, the total billed electricity supply to Moradabad district is only 365 kWh and the actual payment received for electricity consumption is only around 300 kWh17 Since, only around 36 kWh of electricity is lost by way of technical losses, bulk of the remaining 79 kWh forms the component of distribution losses, while the loss to the exchequer or the electricity board works to close to 180 kWh.

While the actual Transmission and Distribution loss is around 115 kWh, the total Commercial loss is 180 kWh.

The potential to bring down the transmission and distribution losses to 10% is extremel high, as it would have to require tightening of distribution systems.

17 PVVNL Data, 2012

7.2 Energy Efficiency Potential for the Domestic Sector

The residential sector of Moradabad is the major consumer of electricity. The electricity consumption of the residential sector in 2011-12 was 350 Million Units.

The pattern of electricity consumption is as below:

Figure 13: Electricity Consumption Pattern of the Domestic Sector of Moradabad

The Major areas where energy can be conserved are as follows:

a) Repleace of incandescent lamps to CFL and Conventional T-12 (40 Watt) Lighting systems to T-5 (28 Watt – electronic ballast tube lights). The estimated potential of savings would be around 40%. This translates to a saving of 15 Million units of electricity annually. b) Replacing conventional ceiling fans which consumer (70 Watt) of electricity with energy efficient fans (consumes only 50 Watt). The savings by just this shift would be 37% per fan. In terms of the total saving potential of electricity in Moradabad district by shifting to energy efficient fans is estimated to be 12 Million Units fo Electricity annually c) 95% of the air-conditioners currently used in Moradabad are energy inefficient air- conditioning system. If these air-conditioning systems where shifted to even a 3 star labeled air-conditioning system of the Bureau of Energy Efficiency, the total electricity saved is estimated to be in the region of 5 Million Units annually. d) Water Pumping systems and irrigation pumping systems used in Moradabad are again in-efficient or zero star rated systems, as per the Bureau of Energy Efficiency;s efficiency standards. The saving potential by shifting these water pumping systems to energy efficient water pumping systems is estimated to be in the region of 20% savings. This translates to a possible saving of 10 Million Units per annum. e) The total saving from other appliances such as refrigerators, desert coolers and switching off the television when not in use, is estimated to save close to 5% of the total electricity consumed for that segment.This is estimated to be in the region of 3 Million Units annually. 50

Therefore the total estimated potential for savings of electricity in the domestic sector annually is in the region of 12 percent or 45 Million Units annually in the short and immediate period. It can go up to 20% by 2020.

7.3 Conventional Electricity Saving Potential from the Brass Industry:

As is mentioned earlier in the report, the brass industry involves multiple operations and with the exception of a few units, most of these operations are performed by independent units, which function as home units or micro units.

Typically, in the brass industry, the following are the various operations involved from coverted the brass slab into a finished product which is ready to be marketed or exported, as the case may be.

Steps The Process Energy used for the Operation First Step Melting of the Brass Slab or Alloy Slab Coal in a Furnace at very high temperatures Second Puring of the Melted Alloy into a Mould Baking it in a Furnace Step Third Step Cutting and cleaning Manual Fourth Step Other Operations such as Threading, Electricity Punching Holes etc Fifth Step Clean or Brazing it (blunting the edges) Electricity Sixth Step Polishing Electricity Alternate Electroplating Electricity Sixth Step

With the exception of the first three steps, all the other steps would require electricity. All these operations with the exception of the electroplating machine requires machinery which is not more than 1 to 2 Horse Power and each unit has anywhere between 2-3 machines.

There are a total of 20,000 micro enterprises in Moradabad district and usually all these units are in clusters. There are ofcourse many clusters, but generally to reduce transportation costs and for ease of logistics, each cluster is a homogenous cluster, which has foundries or furnace units, polishing units and cleaning units as part of one homogenous cluster.

For instance in Netaji Colony, which is a myrade of a few dozen lanes and cross-lanes, one finds a cluster of polishing units, cleaning and electroplating units, foundries and units catering to threading, punching holes etc.

Out of these 20,000 micro units, a broad survey indicates that close to 100 units can form one cluster, of which 70 units can form a cluster for electricity consumption.

For each of these cluster of say 70 units, if a 200 kWp solar roof top systems could be installed, it would cater to the needs of the entire cluster, while saving close to 200 kW of electricity generation.

In the entire town of Moradabad, 200 such cluster can come up.

The total 200 such cluster would required, 40,000 kWp of solar roof top systems or 40 MW of Solar Roof top systems. In terms of electricity saved from conventional power systems, this would translate to 12 Million units annually.

7.4 Energy Efficiency Potential from Municipal and Government Buildings, Public Water Works and Street Lighting Segement

a) Municipal and Government buildings:

There are 85 Government and Municipal buildings including Panchayat Bhawans in the whole of Moradabad district.

Most of these buildings have conventional lighting systems, which are usually the 40 Watt Tube light systems. All the appliances currently affixed in the Government buildings such as fans, air-conditioners, room heaters, occasional water filters, water coolers, desert coolers are all conventional systems and are not rated for their efficiency levels. In fact most of them can be categorise under energy in-efficient systems.

The total electricity consumption by all government buildings of Moradabad district in 2011- 12 was in the region of 20 Million Units.

Assuming a very modest saving potential of just 15% in the next 5 years, the total energy that can be saved from just Municipal and Government buildings is 3 Million units annually.

b) Street Lighting:

The total consumption of electricity for street lighting for Moradabad town in 2011-12 was around 17 Million Units and for the entire Moradabad district was around 19 Million units.

The street lighting systems of Moradabad town is managed by the Nagar Nigam, while it is with the district administration for maintaining the street lights for the rest of the district.

In terms of actual numbers, the following is the total number of street lights and type of fitting in Moradabad town:

Table 12: Summary of Street Light fittings in Moradabad Sl No Type of Lights and Wattage Numbers Alternatives 1 High Mast Tower Light (400 Watts) 77 125 W LEDs 2 Sodium Vapour Lamps (140 Watts) 3960 28 W LEDs 3 Other Sodium/Mercury Vapous 3100 28 W LEDs Lamps (140 Watts) 4 Tube Lights (40 Watts – 10,020 T – 5- 28 W Conventional ballast) Thin Tube Lights 5 CFL Tube and Bulbs 3756 Retain as it is Source: Moradabad Nagar Nigam

Assuming that all the High Mast Tower Light are converted into LED lamps and similarly all the Sodium vapour lamps of 70 W each are conveted into LED lamps of 28 Watts and 52

if all the tube lights, which currently use the 40 W ordinary ballast are converted into 28 Watts electronic ballast, the total savings is expected to be in the region of 5 Million units per year.

c) Public Water Supply

For Moradabad town, there are a number of water pumping stations which are under the Nagar Nigam. The total connected load for these water pumping systems is around 1300 kW.

The City also has a water treatment plant, which is primarily to soften the hard water.

The motors used for pumping water are usually bosster pumps to ensure piped water supply for the city.

Most of the motors used in is around 12. 5 Horsepower, though for booster pumps, they also have large horsepower betweent the range of 50-90.

The total energy consumption for water supply for Moradabad district in 2011-12 was roughly 23 Million units and this has been the average consumption of electricity for the period 2008-2012.

Most of the water pumping systems are old and conventional system and could be replaced by a combination of solar water pumping systems and energy efficient booster pumping systems.

Further, most of the water pumping systems do not have water sensors or timers and many a times, water pumping to over head tanks lead to over flow of water, as these pumps are switched off manually.

A combination of these could estimate in a saving of 20% of electricity annually or in absolute numbers, close to 5 Million units per annum.

In short the Government Buildings, Municipal buildings, street lights and public water works together has a saving potential of 13 Million units annually.

7.5 Summary of Energy Efficiency Potential for Moradabad District:

Table 13: Summary of Energy Efficiency Potential for Moradabad District Sl No Sector Electricity Saving Potential (in Million Units) 1 T & D Loss Reduction 12 Million Units 2 Domestic Sector 45 Million Units 3 Bronze Industry Sector (Micro Enterprises 12 Million Units 4 Government Buildings, Street Lights and Public 13 Million Units water works Total Saving Potentials 82 Million Units Source: Compiled by the Consultant

CHAPTER-8

OTHER ENERGY EFFICIENCY POTENTIALS FOR MORADABAD DISTRICT (LPG, COAL, DIESEL, KEROSENE)

8.1 Saving Potentials from the Use of Coal from Brass Industry by Shifting to Alternate Fuels:

Coal is another fuel which is the main source of fuel for the brass industry. Depending on the size of the foundry, on an average anywhere between 30 Kgs to 200 Kgs of coal is consumed, primarily in the moulding process.

As per 2010, there were close to 25000 organised and unorganized brass industry, with the unorganized sector, largely in the home industry category and it was estimated that out of these 25,000 units, 5000 units were primarily those that performed the function of creating the mould or the furnace units so to speak.

Since the furnace is used for melting copper and zinc, the temperature in the furnace is in the reigon of 950C.

While there is no exact figure of much coal is used, it is estimated that the daily consumption of coal would be in the region of 250 tonnes every day. This is arrived on the basis fo 5000 foundry units at an average consumption of 50 Kgs per day.

Instead of using coal, rice husk based furnace units can be used. A detailed working of this is in the techno-commercial viability section. The following table gives a comparative picture of a coal based furnace Vs. a rick husk based furnace.

8.2 Saving Potential from the use of Kerosene through 100% Electrification of Rural Moradabad:

Moradabad has a total of 1559 inabited villages and in the last count, 406 villages had no electricity connection.

Approximately 40% of the rural households do not have electricity connection and the 60% of the rural households that have electricity connection, the electricity supply varies from a hight of 14 hours a day to a low of 6 hours a day.

Even the town of Moradabad has frequent power outages, with conflicting reports coming from the Electricity Officials of PVVNL, who claim that the daily power outage for the town was only 4 hours, while the citizens claim that the supply of electricity is only for 8 hours a day.

Nevertheless, the main backup of electricity for lighting is Kerosene and in 2011-12, a total of 20,000 Kilo Litres of Kerosene was consumed. The average Kerosene consumption over the last five years has been in the region of 22,000 Kilo litres, having dropped from 25,000 Kilo litres in 2007-08, due to a number of villages being electrified.

As per 2011-12, a total of 30,000 households were using Kerosene for meeting their entire lighting needs and a further 30,000 households were using Kerosene for lighting as a back up for electricity.

With 100% rural electrification, through micro-grid decentralsied renewable energy systems for the 406 villages, the total Kerosene consumption of 20,000 households can be reduced completely. Further, with 24 x 7 supply, all the 30,000 households that use Kerosene can shift to modern and clearn sources of lighting supply.

The electricity equivalent of 20,000 Kilo Litres is approximately 230 Million Units. So, if the district were to augment just 230 Million Units of renewable energy supply, 50,000 tonnes of Co2 can be avoided.

8.3 Saving Potential from the use of Kerosene and Firewood through bio-gas and LPG Supply in Rural Moradabad:

80% of the total households of Moradabad use fire wood and this amounts to 7,63,702 households.

The total bio-gas potential for Moradabad is 30,000 households.

The potential for rice-husk based small bio-mass systems for cooking needs is approximately 200,000 households.

The total LPG access currently is for 120,000 househols. 55

Therefore, if in a phased manner, bio-gas and husk based bio-mass cooking systems are brought in with a combination of solar cookers, there is a potential to reduce the use of firewood from the current level of 763,000 households to half its number, through a combination of 300,000 households with LPG Connection, 30,000 households with bio-gas connections, 200,000 households with ricehusk based connections and roughly 50,000 households through solar cookers.. With 580,000 households off firewood, close to 87,00,000 Kgs of firewood can be avoided a day, translating to 31,75,500 tonnes. This will be equivalent to conserving 5000 hectares of tree plantations.

Diesel:

As of 2011-12, 33,000 kilo litres of diesel was consumed in Moradabad district. It has been estimated that roughly 10% of the total diesel is for back up generators by the Brass and sheet metal industries, particularly in peak season.

Therefore, the total diesel consumption as back up power supply is estimated to be in the region of 2500-3000 Kilo litres per annum.

With a proposal to install 40 MW of solar roof top systems for just the brass and sheet metal industry clusters, this entire requirement of 2500-3000 Kilo Litres of Diesel could be avoided.

CHAPTER - IX

ESTIMATION OF FUTURE ENERGY DEMAND

9.1 Introduction and Assumptions

The estimation of future demand for electricity is based on the following parameters.

1. Population Growth: The trends of population growth in the past have been factored in to estimate the future growth of population of Moradabad. The approximate decadal growth of population was in the region of 28.52 % between 1991 and 2001 and 25.25% between 2001 and 2011. We have therefore assumed that the decadal population growth will be 24% between 2011 and 2021 and 2021. On the basis of this, the annual Population Growth has been assumed at 2.4%

Table 14: Population Estimate in Million Population 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 4.77 4.88 5.02 5.14 5.32 5.45 5.57 5.67 5.75 5.86 5.99

2. Per Capita Increase in Electricity Consumption: The current domestic consumption of electricity of Moradabad district is 348 Million Units with a per-capita electricity consumption fo 400 kWh. As of now, 406 villages are un electrified and close to 50,000 households do not have access to electricity, Assuming that all households in Mordabad district are connected to electricity at a minimum of 1 kWh of electricity, the requirement of electricity for the domestic sector for Moradabad district would increase by 18.25 Million Units.

Further, close to 300,000 households get electricity supply of less than 8 hours a day. If the supply of electricity for these households were to increase to 24 hours and so for the remaining 600,000 households, the electricity consumption for entire district factoring in 24 x 7 supply with 100% electrification would be approximately, 384 Million Units per year from 2015, factoring in a 2.4% increase in population and a 8% GDP growth rate.

Therefore from the base year 2015, a 6% increase in domestic consumption of electricity is assumed

Table 15: Electricity Consumption in the Domestic Sector in Million kWh Electricity 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Consumptio 13 14 15 16 17 18 19 20 21 22 n in Million kWh Curren 100% t Electrif ication 348.00 355.00 367.00 384.00 407.00 431.00 456.00 483.00 512.00 543.00

This would increase the percapita consumption of the domestic sector from the current level of 400 kWh to 900 kWh by 2021.

3. The Energy Consumption growth of 3% has been factored in for the commercial sector, which factors in energy efficiency improvements. For the industrial sector, a 4.5% growth has been assumed. This is largely due to the fact that some fo the micro enterprises currently with domestic load is likely to be shifted to small industries connected load.

Table 16: Electricity Consumption in the Industrial (Small and Large Industries combined) and Commercial Sector in Million kWh Electricity 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Consump 13 14 15 16 17 18 19 20 21 22 tion in Million Curren 100% kWh t Electrif ication Industrial 48.70 50.89 53.18 55.57 58.08 60.69 63.42 66.27 69.26 72.37 Commerc ial 44.00 45.32 46.68 48.08 49.52 51.01 52.54 54.11 55.74 57.41

4. Government Buildings:

In a phased manner, it is assumed that energy efficiency measures will be implemented in all Government and public buildings. Further, it is also assumed that the number of Government buildings will more or less remain static for the period of 2012-13 to 2021.22. Therefore, we have assumed an annual reduction of electricity consumption by 3 percent for the next 5 years and then 1 percent from them on until 2021.

Table 17: Electricity Consumption for Government Buildings in Million kWh Electricity 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Consumpti 13 14 15 16 17 18 19 20 21 22 on in Million kWh Curre 15% 20% nt efficien efficien cy cy

Governmen t Buildings 20.00 19.40 18.82 18.25 17.71 17.53 17.35 17.18 17.01 16.84

5. Street Lights and public water works

We have factored in street lights in all villages and for all streets of the towns of Moradabad District. This would increase the electricity consumption by 10%. However, right now, the street lights are largely Sodium or halogen lamps with old tube lights. If these are converted to CFLs, there is a potential to save 25% of electricity consumption and if it were to be converted to LEDs, there is a saving potential of 40%. We have taken in a mix of both CFLs and LEDs at an 80:20 ration while working on the projected demand for electricity for street lights.

Based on this, we have factored in only a 4% increase in electricity consumption for the lighting sector.

Similarly, we have factored in a 15% increase in public water works, as the piped drinking water facility would slowly have to be implemented in the entire district. Right now, it is only Moradabad which largely has piped drinking water. 58

However, with a proposed combination of solar water pumping systems and energy efficient water pumping systems, we estimate that an increase in electricity consumption factoring in energy efficiency for the public water supply segment would be 3% annually.

Table 18: Electricity Consumption for Street Light and public water works in Million kWh Electricity 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Consump 13 14 15 16 17 18 19 20 21 22 tion in Million Curren kWh t Street Lights 19.00 19.76 20.55 21.37 22.23 23.12 24.04 25.00 26.00 27.04 Public Water Works 23.00 23.69 24.40 25.13 25.89 26.66 27.46 28.29 29.14 30.01

9.2 Demand and Supply Projections for Moradabad District

9.2.1 Electricity Demand Projections for Moradabad District

Table 19: Demand Projections 2012- 2013- 2014- 2015- 2016- 2017- 2018-19 2019-20 2020-21 2021- 13 14 15 16 17 18 22

Energy Consumption – in MU Domestic 348.00 355.00 367.00 384.00 407.00 431.00 456.00 483.00 512.00 543.00 Industrial 48.70 50.89 53.18 55.57 58.08 60.69 63.42 66.27 69.26 72.37 Commercial 44.00 45.32 46.68 48.08 49.52 51.01 52.54 54.11 55.74 57.41 Government buildings 20.00 19.40 18.82 18.25 17.71 17.53 17.35 17.18 17.01 16.84 Public Water Works 19.00 19.76 20.55 21.37 22.23 23.12 24.04 25.00 26.00 27.04 Street Lights 23.00 23.69 24.40 25.13 25.89 26.66 27.46 28.29 29.14 30.01 Total Consumption 502.70 475.26 530.63 515.91 580.42 574.95 640.82 639.50 709.14 713.00 T & D Loss 24% 22% 20% 18% 15% 14% 13% 12% 11% 10% T & D Loss in Million kWh 120.65 104.56 106.13 92.86 87.06 80.49 83.31 76.74 78.01 71.30 Total Electricity Requirement for Moradabad in Million Units 623.35 579.82 636.76 608.77 667.48 655.44 724.12 716.24 787.15 784.30 Peak Load requirement (MW) 241 224 246 235 258 253 280 277 304 303

9.2.2 Electricity Supply Projections from Renewable Energy Sources: The total renewable energy potentials for Moradabad is as follows: Bio-mass: 49. 2 MW Co-generation: 15 MW Roof-Top Solar: 396 MW Micro-Hydro: 8 MW Bio-gas Electricity Generation: 5 MW Waste to Energy Generation: 4.2 MW Grid Connected Solar: 2000 MW

Total: 2477 MW

Note: Energy Efficiency measures already factored in while computing demand projections

There is also an existing 64 MW Renewable Energy Generation, but this is largely for captive consumption and very small quantities is sold to the grid.

Based on this, given below are various options of permutations and combinations of electricity supply Option 1: Aggressive Solar Options (Cumulative)

This option looks at tapping the renewable energy potential for the district and generating excess electricity over and above its requirement to be supplied to the grid for revenues.

This option would make Moradabad a renewable energy surplus generator from the eyar 2016-17, though, it would have to make initial heavy capital investments or investment flows.

Table 20: Electricity Supply Projections – Option 1 – Solar Dominant Option Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 10 20 50 100 150 200 250 300 350 400 Solar Solar Large 10 50 100 100 150 200 250 300 350 400 Grids Bio-mas 1 2 4 5 6 8 10 12 15 20 Co- 2 2 5 5 5 5 8 8 8 8 generation (new) Micro-hydro 1 2 2 2 2 3 3 3 3 3 Waste to 1 1 2 2 2 2 4 4 4 4 Energy Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Total 26 78 164 216 317 420 527 630 733 838 Electricity Generation through Renewable Energy Demand for Moradabad 241 224 246 235 258 253 280 277 304 303 Quantum to be 215 146 82 19 -59 -167 -247 -353 -429 -535 61 purchased from the state grid RE Potential Tapped (in %) 1.04% 3.14% 6.62% 8.72% 12.79 16.96 35.68% 25.43% 29.59% 33.83%

Option 2: Solar Dominant but with very conservative Generation Capacity Addition

This option continues to be a solar dominant option, though, opts for a conservating capacity addition This option would make Moradabad a renewable energy surplus generator from the eyar 2019-20, and will have a relatively less capital investment flows in the initial years.

Table 21: Electricity Supply Projections – Option 2 – Solar Dominant but conservative growth Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 2 5 15 30 50 75 100 125 150 175 Solar Solar Large 2 5 25 50 75 100 125 150 175 200 Grids Bio-mas 1 2 4 5 6 8 10 12 15 20 Co- 2 2 5 5 5 5 8 8 8 8 generation Micro-hydro 1 2 2 2 2 3 3 3 3 3 Waste to 1 1 2 2 2 2 4 4 4 4 Energy Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Total 10 18 54 96 142 195 252 305 358 413 Electricity Generation through Renewable Energy Demand for Moradabad 241 224 246 235 258 253 280 277 304 303 Quantum to be purchased from the state grid 231 206 192 139 116 58 28 -28 -54 -110 RE Potential Tapped (in %) 0.40% 0.73% 2.18% 3.88% 5.73% 7.87% 10.17% 12.31% 14.45% 16.67%

Option 3: Bio-Mass, Co-Gen and Hydro Dominant but with very conservative Generation Capacity Addition

This options further reduces the capacity addition from solar based projects, but instead maximizes the estimated potential from Bio-Mass, Bagasse based co-generation and micro- hydro projects. The investments for this option would be the lowest amongst the other two options given above.

In this option too, Moradabad can start selling surplus electricity generated to the grid from the year 2019-20.

Table 22: Electricity Supply Projects – Option 3: Bio-mass and other Energy Source Dominant Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 2 5 10 20 30 50 75 100 125 150 Solar Solar Large 2 5 10 20 30 50 75 100 125 150 Grids Bio-mas 5 10 15 20 25 30 35 40 45 45 Co- 3 5 5 5 10 10 10 10 15 15 generation Micro-hydro 1 2 2 3 5 5 5 8 8 8 Waste to 1 1 2 2 2 2 4 4 4 4 Energy Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Total 15 29 45 72 104 149 206 265 325 375 Electricity Generation through Renewable Energy Demand for Moradabad 241 224 246 235 258 253 280 277 304 303 Quantum to be purchased from the state grid 226 195 201 163 154 104 74 12 -21 -72 RE Potential Tapped (in %) 0.61% 1.17% 2.22% 3.71% 5.81% 8.03% 10.34% 12.72% 15.14% 17.16%

9.3 Energy Projections up to 2020

The major sources of energy currently being used for heating, cooking and lighting purposes are Kerosene, Firewood and LPG.

Kerosene is primarily used for lighting purposes, while firewood and LPG is used for heating purposes.

With 100% electricity needs being met, we believe that Kerosene use in Moradabad would decline and in all our costing, this is an assumption being made.

As far as firewood is concerned, it is being used in a 30:70 ratio for heating water and meeting cooking needs.

The average firewood consumption in Moradabad is approximately 11,455 tonnes

aapproximately tonnes a day, or approximately 41,81,075 tonnes per year, which

is equivalent to using trees covering an area of 16,724 hectares per year. This is

largely consumed by the domestic sector for cooking and heating purposes/

In view of the above, we project the energy supply needs for cooking and heating as below:

Table 23: Energy Supply for Cooking and Heating: Projections Base 2013- 2015- 2012-13 2014-15 2016-17 2017-18 2018-19 2019-20 year 14 16 Number of Households having bio-gas plants 0 3000 5000 7000 10000 15000 20000 25000 30000 Husk Based Bio-Gas plant for cooking and heating 0 30,000 60,000 80,000 100,000 125,000 150,000 200,000 200,000 Number of Houses having LPG 18 Connection 120,000 140,000 150,000 175,000 200,000 225,000 250,000 300,000 350,000 Total Households with clean cooking fuels 120,000 173,000 215,000 262,000 310,000 365,000 470,000 525,000 580,000 Households that would still not be covered with clean sources of 780,000 727,000 685,000 638,000 590,000 535,000 430,000 375,000 320,000

18 We can either have bio-gas plants or bottling plant, due to the limited availability of fresh dung in Moradabad district.

64 cooking fuel Other options for clean cooking fuel could include Solar Thermal Applications and Solar Cooker applications, which could potentially reduce the number of households that do not have access to clearn energy cooking and heating requirements.

Other Heating Energy Applications:

Table 24: Supply Projections for other Heating Sources of Energy Base 2013- 2015- 2016- 2012-13 2014-15 2017-18 2018-19 2019-20 year 14 16 17 Solar Water Heating Systems 0 5000 10000 15000 20000 25000 30000 35000 40000

CHAPTER- X

TECHNO-COMMERICAL FEASIBILITY AND VIABILITY FOR VARIOUS POSSIBLE OPTIONS AND SUB-SECTOR INITIATIVE

10.1 Techno-Commerical Feasibility for Option 1: Dominant Solar Generation Option with Aggressive Electricity Generation Capacity Addition:

Moradbad does not have its own electricity generation with the exception of a 64 MW Renewable Energy Generation Installed Capacity, which is largely for captive consumption of the various industries of Moradabad and very little quantum of electricity is sold to the grid.

Even the quantum that is sold to the grid is largely seasonal, during the sugar cane season, when the sugar mills are in full operation. Therefore, the first option, which is a dominant solar generation option also explores the possibility of aggressive electricity generation capacity addiitons.

10.1.1 The Capital Cost for option 1

Table 25: Cost Projections for Supply Scenario from option 1 Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 10 20 50 100 150 200 250 300 350 400 Solar Capital Cost 200 200 600 1000 1000 1000 1000 1000 1000 1000 (Rs. In Cr) Solar Large 10 50 100 100 150 200 250 300 350 400 Grids Capital Cost 200 200 600 1000 1000 1000 1000 1000 1000 1000 (Rs. In Cr) Bio-mas 1 2 4 5 6 8 10 12 15 20 Capital Cost 4 4 8 4 4 8 8 8 12 20 (Rs. In Cr) Co- 2 2 5 5 5 5 8 8 8 8 generation (new) Capital Cost 8 0 12 0 0 0 12 0 0 0 (Rs. In Cr) Micro-hydro 1 2 2 2 2 3 3 3 3 3 Capital Cost 4 4 0 0 0 4 0 0 0 0 (Rs. In Cr) Waste to 1 1 2 2 2 2 4 4 4 4 Energy Capital Cost 5 0 5 0 0 0 10 0 0 0 (Rs. In Cr) Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Capital Cost 2 0 0 2 0 0 0 2 0 0 (Rs. In Cr) Total Costs 423 410 1225 2006 2000 2012 2030 2010 2012 2020 66

10 Year Cumulative total 16148 Cr Annual Average: Rs. 1614 Cr Assumption:

The cost of a 1 MW PV Grid and Roof Top Solar System has been taken as Rs. 20 Cr The general cost of a 1 MW bio-mass plant as per MNRE and state Electricity Regulatory Authority guidelines range from Rs. 3.50 Cr to a maximum of Rs. 4.50 Cr, averaging to Rs. 4 Cr. For a hydro plant of less than 1 MW, the capital costs are in the region of Rs. 4 Cr per MW.

10.1.2 Options for Meeting the Capital Cost:

The Draft Policy of the Phase II implementation of the National Solar Mission has the following options:

1) A Viability Gap Funding of up to 40% of the Capital Cost, determined through a bidding route 2) If Viability Gap Funidng Option is preferred by the project developer, the per kWh tariff would be in the region of Rs. 5/- and Rs. 6/- 3) However, if Generation Based Incentive option is preferred by the project developer for Solar Generation Projects, the tariff would be as determined by the Electricity Regulatory, which for Uttar Pradesh is currently Rs. 12.50 per kWh.

For all the other projects, the investments will be purely market driven, with a feed in tariff.

Therefore, for solar projects, the investment from the government assuming that Viability Gap Funding is the option most preferred, would be as follows:

Table 26: Estimated Cost to the Governmnent for Electricity Supply Scenario from option 1 Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 10 20 50 100 150 200 250 300 350 400 Solar Capital Cost 200 200 600 1000 1000 1000 1000 1000 1000 1000 (Rs. In Cr) Cost to the 80 80 240 400 400 400 400 400 400 400 Government at 40% Viaibility Gap Funding (Rs. In Cr) Solar Large 10 50 100 100 150 200 250 300 350 400 Grids Capital Cost 200 200 600 1000 1000 1000 1000 1000 1000 1000 (Rs. In Cr) Cost to the 80 80 240 400 400 400 400 400 400 400 Government at 40% Viaibility Gap Funding (Rs. 67

In Cr) Total Cost 160 160 480 800 800 800 800 800 800 800 (In Cr) 10 year cumulative cost to the Government: Rs. 6400 Annual Average Cost: Rs. 640 Cr

If Viability Gap Funding is the preferred option, the Government would have to spend Rs. 640 Cr every year for the next 10 years and bulk of it will come from the National Solar Mission Scheme.

10.1.3 The Option I ( in Million kWh)

Table 27: The Electricity Supply Option in million kWh Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MU Roof-Top 3.5 8.75 26.25 52.5 87.5 131.25 175 218.75 262.5 306.25 Solar Solar Large 3.5 8.75 26.25 52.5 87.5 131.25 175 218.75 262.5 306.25 Grids Bio-mas 30.66 61.32 91.98 122.64 153.30 183..96 214.62 245.28 275.94 275.94 Co- 18.39 30.66 30.66 30.66 61.32 61.32 61.32 61.32 91.98 91.98 generation Micro-hydro 3.07 6.13 6.13 9.20 15.33 15.33 15.33 24.53 24.53 24.53 Waste to 4.38 4.38 8.76 8.76 8.76 8.76 17.52 17.52 17.52 17.52 Energy Bio-gas Electricity 3.5 3.5 3.5 7.0 7.0 7.0 7.0 10.5 10.5 10.5 Total Electricity Generation through Renewable Energy 67.00 123.50 193.54 283.27 420.72 538.88 665.80 796.66 945.48 1032.98 Demand for Moradabad 623.35 579.82 636.76 608.77 667.48 655.44 724.12 716.24 787.15 784.30 Quantum to be purchased from the - - state grid 556.35 456.32 443.22 325.50 246.76 116.56 58.32 -80.42 158.33 248.68 RE Potential Tapped (in %) 0.61% 1.17% 2.22% 3.71% 5.81% 8.03% 10.34% 12.72% 15.14% 17.16% Assumptions: The Conversion rate for 1 MW in to kWh has been taken at 1 MW x 24 Hours x 365 x PLF/100

The PLF for Solar is assumed at 19% The PLF for Bio-mass and co-generation is assumed at 70% 19

19 http://mnre.gov.in/file-manager/UserFiles/faq_biomass.htm

The PLF for bio-gas plants has been assumed at 40% The PLF for micro-hydro projects is assumed at 35%20 The PLF for waste to energy projects is assumed at 50%21 The PLF for State Grid Purchase is assumed at 35%

10.1.4 The Cost implication to the consumer for Option I ( in Million kWh) At both Full Feed-in-tariff Rate for solar at Rs. 12.50 per kWh as well as partial feed in tariff through capital subsidy route (Viability Gap Funding)

Table 28: The Cost Implication to the consumer for option 1 Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MU Roof-Top 3.5 8.75 26.25 52.5 87.5 131.25 175 218.75 262.5 306.25 Solar at Cost at Rs. 12.50 per kWh with the tariff reducing by 44 105 302 578 919 1313 1663 1969 2231 2450 Rs. 0.50 every year (In Million Rupees) Cost at Rs. 6/- per kWh static (In A Viability Gap Funding 21 53 158 315 525 788 1050 1313 1575 1838 Option Mode)(In Million Rupees) Solar Large 3.5 8.75 26.25 52.5 87.5 131.25 175 218.75 262.5 306.25 Grids Cost at Rs. 12.50 per kWh with the tariff 44 109 328 656 1094 1641 2188 2734 3281 3828 reducing by Rs. 0.50 (In Million Rupees) Cost at Rs. 21 53 158 315 525 788 1050 1313 1575 1838 6/- per kWh

20 http://tnerc.tn.nic.in/Concept%20Paper/2010/Consultative%20Paper-Smal%20hydro%20CP%20FC.pdf

21 http://geda.gujarat.gov.in/pdf/Waste%20to%20Energy.pdf

69 static (In A Viability Gap Funding Option Mode)(In Million Rupees) Bio-mas 30.66 61.32 91.98 122.64 153.30 183..96 214.62 245.28 275.94 275.94 Cost at Rs. 5.50 per kWh (In 169 337 506 675 843 1012 1180 1349 1518 1518 Million Rupees) Co- 18.39 30.66 30.66 30.66 61.32 61.32 61.32 61.32 91.98 91.98 generation Cost at Rs. 5.50 per kWh (In 101 169 169 169 337 337 337 337 506 506 Million Rupees) Micro-hydro 3.07 6.13 6.13 9.20 15.33 15.33 15.33 24.53 24.53 24.53 Cost at Rs. 3.50 per kWh (In 11 21 21 32 54 54 54 86 86 86 Million Rupees) Waste to 4.38 4.38 8.76 8.76 8.76 8.76 17.52 17.52 17.52 17.52 Energy Cost at Rs. 3.50 per kWh (In 15 15 31 31 31 31 61 61 61 61 Million Rupees) Bio-gas Electricity 3.5 3.5 3.5 7.0 7.0 7.0 7.0 10.5 10.5 10.5 Cost at Rs. 3.50 per kWh (In Million Rupees) 12 12 12 25 25 25 25 37 37 37 Total Cost In Million Rupees (Full Tariff for Solar) 396 765 1343 2086 3127 4083 4982 5808 6670 7108 Total Cost In Million Rupees at Viability Gap Funding for solar 350 660 1054 1561 2339 3033 3757 4495 5358 5883 The Difference that needs to 556.35 456.32 443.22 325.50 246.76 116.56 58.32 70 be purchased from State Grid in Million Units Cost of the State Purchase in Million Rupees at Rs. 5/- per kWh with the Rs. 0.50 incremental costs 2782 2510 2659 2116 1727 874 467 Total Cost of Purchase from RE + Central Grid (At full Solar Tariff of Rs. 12.50 3177 3275 4002 4201 4854 4957 5449 5808 6670 7108 Total Cost of Purchase from RE + Central Grid (at Rs. 6/- tariff for solar – VGF Mode) 3132 3170 3713 3676 4067 3907 4224 4495 5358 5883 Revenues earned by Selling surplus Electricity to state grid tariff of Rs. 8.50 per kWh 684 1346 2114 Net Cost of RE Generation + Central Grid 3177 3275 4002 4201 4854 4957 5449 5124 5324 4994 Net Cost of RE Generation + Central Grid 3132 3170 3713 3676 4067 3907 4224 3812 4012 3769 Demand for Moradabad 623.35 579.82 636.76 608.77 667.48 655.44 724.12 716.24 787.15 784.30 If the entire Demand 3117 3189 3821 3957 4672 4916 5793 6088 7084 7451 were to be bought from 71

State Grid at Rs. 5/- per kWh with a Rs. 0.50 Increase in tariff year on year The Price Difference between Green Energy Option and Grid Purchase for full Solar Tariff -61 -86 -181 -244 -182 -41 344 964 1760 2457 The Price Difference between Green Energy Option and Grid Purchase in a VGF Scenario -15 19 107 281 606 1009 1569 2276 3073 3682

Red means the cost of RE + Grid is Costlier than full Grid Purchase Green Indicates that the cost of RE is cheaper than full grid purchase and also earns revenue to the district

In a option where most of the Solar Project Developers opt for no upfront Capital cost or Viability Gap Funding which is proposed in the draft Phase II policy of the National Solar Mission and instead opt for full tariff of Rs. 12.50 per kWh, the cost escalation of over all tariff for the consumers will go up marginally upto 2016-17, with the cost escalation for the year 2015-16 and 2016-17 would be Rs.1/- a kWh more than the usual cost they would be paying in a business as usual scenario.

However, if the Solar Project developers opts for a Viaiblity Gap Funding option, which is provided under the National Solar Mission, the tariff then payable for Solar Generation is only Rs. 6/- per kWh. In this case, the cost escalation to the consumer in the first year will be a margine Rs. 0.05 more than what they would be paying in a business as usual scenario and from the second year onwards, there could be a potential reduction in tariffs, if the advantage is passed on to the consumers.

10.1.5 The Technical Viaibility for this Option – the Pros and Cons:

Very clearly, in terms of technical viability, this option has a number of advantages. Being a solar dominant option and considering that Moradabad has one of the best solar radiation and isolation levels compared to many other districts of Uttar Pradesh, is perhaps one of the best suited locations for large solar projects.

The district is also well located with land use patterns that indicate that even large scale grid projects is possible to be set, since the quantum of Government owned land is fairly large.

Due to its geographic location, its proximity to Delhi, its location on the national road grid, transporting of renewable energy equipments does not pose any logistic problems and therefore also does not pose any cost escalations issue due to transport and logistics issue.

Its proximity to Delhi also ensures that adequate and appropriately trained human resources is potentially avaialbe 24 x 7 for maintenance of the systems

The other clear advantages which is a combination of technical and grid related are as follows:

1) It creates a sense of energy security for Moradabad district by gradually reducing its dependence on electricity from the state grid and also the Northern Grid 2) Since the Northern Grid has a history of collapsing due to heavy electricity traffic in the high electricity consuming states, the district having its own electricity generation can be grid independent to that extent of getting its requirement met. 3) The district by generating surplus electricity can sell it to the grid at a substantially high prices and in a scenario where “power markets” will be fully functional in India, it can also sell electricity either by way of Renewable Energy Certificates or physicially the surplus electricity at the market price. This can be a big revenue earner for the state and project developers and this revenue can be used for other developmental activities 4) Moradabad can take advantage of already being designated as “Solar City” and avail of all the National Solar Mission Policies and Programmes and therefore, achieving the targets set for solar generation will not be an issue for them. They will not have serious competition from other districts – primarily due to its status. 5) Being the hub for small and medium enterprises, Moradabad can also ensure that it creates a show case model for renewable energy generation which can cater to the 30,000 plus Small and Micro Industries and other medium and large industries. 6) The cost to the consumers is very insiginificant, even if full tariff for solar is the most preferred option for solar project developers. The increase in tariff for consumers is only for the short period

The Clear disadvantages are:

1) In the absence of a strong grid, the question that remain, is the technical feasibility of actually evacuating the surplus energy generated to the grid. 2) The issue gets further complicated, considering that the Northern Grid right now has technical issues

10.2 Techno-Commerical Feasibility for Option 2: Dominant Solar Generation Option with Conservative Electricity Generation Capacity Addition:

This option is also a solar dominant generation scenario, but looks at a very conservative capacity addition.

In this option, the initial capital costs would be low and in the initial period, purchase from the state grid will be high. Further, even the surplus energy generated from the years 2019- 2020 to 2021-22 will not be very substantial for huge revenues, but, it would be sufficient to showcase the green energy status fo the district.

10.2.1: The Capital Cost Implications for Option 2

Table 29: The Capital Cost Implications for option 2

Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 2 5 15 30 50 75 100 125 150 175 Solar Capital Cost 40 60 100 300 400 500 500 500 500 500 (Rs. In Cr) Solar Large 2 5 25 50 75 100 125 150 175 200 Grids Capital Cost 40 60 400 500 500 500 500 500 500 500 (Rs. In Cr) Bio-mas 1 2 4 5 6 8 10 12 15 20 Capital Cost 4 4 8 4 4 8 8 8 12 20 (Rs. In Cr) Co- 2 2 5 5 5 5 8 8 8 8 generation Capital Cost 8 0 4 0 0 0 12 0 0 0 (Rs. In Cr) Micro-hydro 1 2 2 2 2 3 3 3 3 3 Capital Cost 4 4 0 0 0 4 0 0 0 0 (Rs. In Cr) Waste to 1 1 2 2 2 2 4 4 4 4 Energy Capital Cost 5 0 5 0 0 0 10 0 0 0 (Rs. In Cr) Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Capital Cost 2 0 0 2 0 0 0 2 0 0 (Rs. In Cr) Total Capital 103 128 517 806 904 1012 1030 1010 1012 1020 Cost (Rs. In Cr) Cumulative Total of the ten year investment: Rs. 7542 Cr Average Annual Capital Investment: Rs. 754.20 Cr Cost to the Government on account of Viaibility Gap Funding Option preferred for Solar Generation (40%) Rs. 2800 Cr Or An Annual Investment of Rs. 280 Cr 74

10.2.2 Cost Implications on Tariffs to Consumers

Table 30: The Cost Implication to the consumer for option II

Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MU Roof-Top 3.33 8.32 24.97 49.93 83.22 124.83 166.44 208.05 249.66 291.27 Solar at Cost at Rs. 12.50 per kWh with the tariff reducing by 42 100 287 549 874 1248 1581 1872 2122 2330 Rs. 0.50 every year (In Million Rupees) Cost at Rs. 6/- per kWh static (In A Viability Gap Funding 20 50 150 300 499 749 999 1248 1498 1748 Option Mode)(In Million Rupees) Solar Large 3.33 8.32 41.61 83.22 124.83 166.44 208.05 249.66 291.27 332.88 Grids Cost at Rs. 12.50 per kWh with the tariff 42 100 479 915 1311 1664 1976 2247 2476 2663 reducing by Rs. 0.50 (In Million Rupees) Cost at Rs. 6/- per kWh static (In A Viability Gap Funding 20 50 250 499 749 999 1248 1498 1748 1997 Option Mode)(In Million Rupees) Bio-mas 6.13 12.26 24.53 30.66 36.79 49.06 61.32 73.58 91.98 122.64 Cost at Rs. 5.50 per kWh (In 34 67 135 169 202 270 337 405 506 675 Million Rupees) 75

Co- 12.26 12.26 30.66 30.66 30.66 30.66 49.06 49.06 49.06 49.06 generation Cost at Rs. 5.50 per kWh (In 67 67 169 169 169 169 270 270 270 270 Million Rupees) Micro-hydro 3.07 6.13 6.13 6.13 6.13 9.20 9.20 9.20 9.20 9.20 Cost at Rs. 3.50 per kWh (In 11 21 21 21 21 32 32 32 32 32 Million Rupees) Waste to 4.38 4.38 8.76 8.76 8.76 8.76 17.52 17.52 17.52 17.52 Energy Cost at Rs. 3.50 per kWh (In 15 15 31 31 31 31 61 61 61 61 Million Rupees) Bio-gas Electricity 4.38 4.38 4.38 8.76 8.76 8.76 8.76 13.14 13.14 13.14 Cost at Rs. 3.50 per kWh (In Million Rupees) 15 15 15 31 31 31 31 46 46 46 Total Cost In Million Rupees (Full Tariff for Solar) 226 387 1137 1885 2638 3445 4289 4933 5513 6077 Total Cost In Million Rupees at Viability Gap Funding tariffs for solar 183 287 770 1219 1702 2280 2978 3560 4161 4829 The Difference that needs to be purchased from State Grid in Million Units 586.47 523.76 495.72 390.65 368.33 257.74 203.78 96.03 65.33 Cost of the State Purchase in Million Rupees at Rs. 5/- per kWh with the 2932 2881 2974 2539 2578 1933 1630 816 588 76

Rs. 0.50 incremental costs Total Cost of Purchase from RE + Central Grid (At full Solar Tariff of Rs. 12.50 3267 4111 4424 5217 5378 5919 5750 6101 6077 3267 Total Cost of Purchase from RE + Central Grid (at Rs. 6/- tariff for solar – VGF Mode) 3115 3168 3745 3758 4280 4213 4608 4377 4749 4829 Revenues earned by Selling surplus Electricity to state grid tariff of Rs. 8.50 per kWh 488 Net Cost of RE Generation + Central Grid 3267 4111 4424 5217 5378 5919 5750 6101 6077 5589 Net Cost of RE Generation + Central Grid 3115 3168 3745 3758 4280 4213 4608 4377 4749 4340 Demand for Moradabad 623.35 579.82 636.76 608.77 667.48 655.44 724.12 716.24 787.15 784.30 If the entire Demand were to be bought from State Grid at Rs. 5/- per 3117 3189 3821 3957 4672 4916 5793 6088 7084 7451 kWh with a Rs. 0.50 Increase in tariff year on year The Price Difference between Green Energy -41 -78 -290 -467 -545 -462 -126 338 983 1374 77

Option and Grid Purchase for full Solar Tariff The Price Difference between Green Energy Option and Grid Purchase in a VGF Scenario 2 21 76 199 392 703 1185 1711 2335 2622

Red means the cost of RE + Grid is Costlier than full Grid Purchase Green Indicates that the cost of RE is cheaper than full grid purchase and also earns revenue to the district

In a option where most of the Solar Project Developers opt for no upfront Capital cost or Viability Gap Funding which is proposed in the draft Phase II policy of the National Solar Mission and instead opt for full tariff of Rs. 12.50 per kWh, the cost escalation of over all tariff for the consumers will go up marginally from 2014-15 up to 2018-19 , with the cost escalation for the year 2014-15, 2015-16, 2016-17 and 2017-18 would be Rs.1.50/- a kWh more than the usual cost they would be paying in a business as usual scenario.

However, if the Solar Project developers opts for a Viaiblity Gap Funding option, which is provided under the National Solar Mission, the tariff then payable for Solar Generation is only Rs. 6/- per kWh. In this case, the cost escalation to the consumer in the first year will be a margine Rs. 0.02 only more than what they would be paying in a business as usual scenario only for the first year and from the second year onwards, there could be a potential reduction in tariffs, if the advantage is passed on to the consumers.

10.2.3 The Technical Viaibility for this Option – the Pros and Cons:

The district is also well located with land use patterns that indicate that even large scale grid projects is possible to be set, since the quantum of Government owned land is fairly large.

Its proximity to Delhi also ensures that adequate and appropriately trained human resources is potentially avaialbe 24 x 7 for maintenance of the systems

Further, the initial investments are also not very high and the surplus electricity generated that can be evacuated through the UP State Grid for sale else where is also not much.

The other advantage is that, it is also going slow in generation capacity addition and as and when the Grid strengthening happens and the demand for renewable energy increases, Moradabad district can immediately take on many more projects, largely due to its experience in already installing and commissioning Renewable Energy Projects. This is a good way of “Learning By Doing”.

The Clear disadvantages are:

1) The electricity sector cannot be a major revenue earner for the state in the short to medium period, though in the long run, it has the potential to be a revenue earner for the district. 2) In the absence of a strong grid, the question that remain, is the technical feasibility of actually evacuating the surplus energy generated to the grid. However, the quantum of supply to the state grid being small, this is a minor disadvantage.

10.3 Techno-Commerical Feasibility for Option 3: Bio-Mass and other Technology dominant option as against Solar:

This option is a bio-mass and other renewable energy technology dominant generation option, keeping solar generation only to the extent necessary to ensure that the district has a 100% renewable energy source of electricity by 2019-2010.

10.3.1: The Capital Cost Implications for Option 3

Table 31: The Capital Cost Implications for Option 3

Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MW) Roof-Top 2 5 15 30 50 75 100 125 150 175 Capital Cost 40 60 100 300 400 500 500 500 500 500 (Rs. In Cr) Solar Large 2 5 15 30 50 75 100 125 150 175 Grids Capital Cost 40 60 200 300 400 500 500 500 500 500 (Rs. In Cr) Bio-mas 5 10 15 20 25 30 35 40 45 45 Capital Cost 20 20 20 20 20 20 20 20 20 0 (Rs. In Cr) Co- 3 5 5 5 10 10 10 10 15 15 generation 79

Capital Cost 12 8 0 0 8 0 0 0 20 0 (Rs. In Cr) Micro-hydro 1 2 2 3 5 5 5 8 8 8 Capital Cost 4 4 0 4 8 0 0 12 0 0 (Rs. In Cr) Waste to 1 1 2 2 2 2 4 4 4 4 Energy Capital Cost 5 0 5 0 0 0 10 0 0 0 (Rs. In Cr) Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Capital Cost 2 0 0 2 0 0 0 2 0 0 (Rs. In Cr) Total Capital Cost (Rs. In 123 152 225 426 436 820 1030 1034 1040 1000 Cr) Cumulative Total of the ten year investment: Rs. 6286 Cr Average Annual Capital Investment: Rs. 628.60 Cr Cost to the Government on account of Viaibility Gap Funding Option preferred for Solar Generation (40%) Rs. 2400 Cr Or An Annual Investment of Rs. 480 Cr

10.3.2 Cost Implications on Tariffs to Consumers

Table 32: The Cost Implication to the consumer for option 3

Sources of 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- Renewable 13 14 15 16 17 18 19 20 21 22 Energy (In MU Roof-Top 3.33 8.32 16.64 33.29 49.93 83.22 124.83 166.44 208.05 249.66 Solar at Cost at Rs. 12.50 per kWh with the tariff reducing by 42 100 191 366 524 832 1186 1498 1768 1997 Rs. 0.50 every year (In Million Rupees) Cost at Rs. 6/- per kWh static (In A Viability Gap Funding 20 50 100 200 300 499 749 999 1248 1498 Option Mode)(In Million Rupees) Solar Large 3.33 8.32 16.64 33.29 49.93 83.22 124.83 166.44 208.05 249.66 Grids Cost at Rs. 42 100 191 366 524 832 1186 1498 1768 1997 80

12.50 per kWh with the tariff reducing by Rs. 0.50 (In Million Rupees) Cost at Rs. 6/- per kWh static (In A Viability Gap Funding 20 50 100 200 300 499 749 999 1248 1498 Option Mode)(In Million Rupees) Bio-mas 30.66 61.32 91.98 122.64 153.3 183.96 214.62 245.28 275.94 275.94 Cost at Rs. 5.50 per kWh (In 169 337 506 675 843 1012 1180 1349 1518 1518 Million Rupees) Co- 18.40 30.66 30.66 30.66 61.32 61.32 61.32 61.32 91.98 91.98 generation Cost at Rs. 5.50 per kWh (In 101 169 169 169 337 337 337 337 506 506 Million Rupees) Micro-hydro 3.07 6.13 6.13 9.20 15.33 15.33 15.33 24.53 24.53 24.53 Cost at Rs. 3.50 per kWh (In 11 21 21 32 54 54 54 86 86 86 Million Rupees) Waste to 4.38 4.38 8.76 8.76 8.76 8.76 17.52 17.52 17.52 17.52 Energy Cost at Rs. 3.50 per kWh (In 15 15 31 31 31 31 61 61 61 61 Million Rupees) Bio-gas 1 1 1 2 2 2 2 3 3 3 Electricity Cost at Rs. 3.50 per kWh (In Million Rupees) 3.50 3.50 3.50 7.01 7.01 7.01 7.01 10.51 10.51 10.51 Total Cost In Million Rupees (Full Tariff for Solar) 391 755 1122 1663 2338 3122 4029 4866 5744 6202 81

Total Cost In Million Rupees at Viability Gap Funding tariffs for solar 348 655 939 1330 1888 2457 3155 3868 4704 5203 The Difference that needs to be purchased from State Grid in Million Units 556.69 457.18 462.44 363.93 321.90 212.62 158.66 24.20 Cost of the State Purchase in Million Rupees at Rs. 5/- per kWh with the Rs. 0.50 incremental costs 2783 2514 2775 2366 2253 1595 1269 206 Total Cost of Purchase from RE + Central Grid (At full Solar Tariff of Rs. 12.50 3175 3269 3896 4028 4591 4717 5298 5072 5744 6202 Total Cost of Purchase from RE + Central Grid (at Rs. 6/- tariff for solar – VGF Mode) 3132 3169 3713 3696 4142 4051 4424 4073 4704 5203 Revenues earned by Selling surplus Electricity to state grid tariff of Rs. 8.50 per kWh 444.87 1282.5 Net Cost of RE Generation + Central Grid 3175 3269 3896 4028 4591 4717 5298 5072 5300 4920 82

Net Cost of RE Generation + Central Grid 3132 3169 3713 3696 4142 4051 4424 4073 4259 3921 Demand for Moradabad 623.35 579.82 636.76 608.77 667.48 655.44 724.12 716.24 787.15 784.30 If the entire Demand were to be bought from State Grid at Rs. 5/- per 3117 3189 3821 3957 4672 4916 5793 6088 7084 7451 kWh with a Rs. 0.50 Increase in tariff year on year The Price Difference between Green Energy Option and Grid Purchase for full Solar Tariff -58 -80 -75 -71 81 199 495 1016 1785 2531 The Price Difference between Green Energy Option and Grid Purchase in a VGF Scenario -15 20 108 261 530 865 1369 2015 2825 3530

Red means the cost of RE + Grid is Costlier than full Grid Purchase Green Indicates that the cost of RE is cheaper than full grid purchase and also earns revenue to the district

In a option where the biomass, co-generation and micro-hydro;s full potential is tapped and with solar generation only to add to the basket of energy options to ensure minimum purchzse from the state grid, the cost to the consumer due to the increased cost of renewables is almost negligible. It just works to Rs. 0.02 per kWh, which even the poorest of the poor will not be affected much, since they will also be ensured 100 percent energy and electricity access.

10.3.3 The Technical Viability of this option – The Pros and Cons:

This is also a technically viable option, since the technologies for bio-mass, micro-hydro and co-generation exists, though the success rate of bio-mass generation projects in India is rather low.

However, this option could appeal to the district administration as attracting that kind of investments from a area which is rich in rice, wheat, sugar cane cultivation and therefore having huge bio-mass potential would be relatively easier.

The cost options for this in terms of getting the investments is also relatively low and the cost implications to the consumer is almost zero.

However the major diadvantages with this option are:

1) The sustainability of bio-mass inputs is always doubtful. 2) While it can be argued that the area being in the Gangetic Plain will always be fertile and the potential of it continuing to be the rice, wheat and sugar bowl of India is high. 3) However, since bulk of the bio-mass is agro based and since the agro-based residues are also used as feed stock for domestic animals, with an increase in animal population, the quantum of surplus bio-mass could also potentially reduce 4) Further, in a climate constrained world and given the past trend of reduction in agricultural yield coupled with the proximity of Moradabad to Delhi, there is a possibility of a massive land use pattern, leading to more industrial development and thereby reduced agricultural activities. 5) In terms of technology, while bio-mass is a proven technology, the fact of the matter is that there are very few success stories of bio-mass generation in india. 6) These plants require routine maintenance and this is something that may prove to be difficult in Moradabad 7) As the demand for bio-mass increases, the cost of inputs could also increase. On the other hand, with increase in the demand of solar panels, the costs are likely to come down, as it has in the past. This is due to economies of scale.

10.4 Techno-commercial viability for Municipal Street Lighting and public water works – Options and Costs

Street Lights:

Currently in Moradabad town, the following is a picture of the street light fixtures.

Table 33: Current Iventory of Street Light Fittings in Moradabad Sl No Type of Lights and Wattage Numbers Alternatives 1 High Mast Tower Light (400 Watts) 77 125 W LEDs 2 High Power Sodium Vapour Lamps 3960 70 W LEDs (400 Watts) 3 Other Sodium/Mercury Vapous 3100 28 W LEDs Lamps (70 Watts) 4 Tube Lights (40 Watts – 10,020 T – 5- 28 W Conventional ballast) Thin Tube Lights 5 CFL Tube and Bulbs 3756 Retain as it is

Based on the above, we looked at the techno-commerical viaibility for four sub projects, namely:

a) Conversion of Street Lights on the Main Railway Station Road of Moradabad Town to Solar PV Powered Street Lights with thin tubes b) Replacement of High Mast tower Lights of 400 W with LED lights of 125 Watts c) Replacement of High Power Sodium Vapour Lamps of 250 W with LED lights of 70 W LEDs d) Replacement of other Sodium Vapour Lamps of 70 Watt to 28 W LED fixtures

The techno Commercial Viability Calculation for each of the projects is as below:

a) The techno-commercial viability of converting all the Street lights on Station Road to Solar PV Street Lights:

Table 34: Commercial Viaibility Chart for Street Light Conversion in to PV Lights Description of the Project Value Units Target No of Street Lights on Station Road 300 Numbers Replacement of Street Lights with Solar Panels 300 Numbers

Approximate Cost of One replacement 20,000.00 In Rupees

Total Cost of Replacement 6,000,000.00 In Rupees MNRE Subsidy Available 50%

Value of MNRE Subsidy 3,000,000.00 Energy Saved through replacement 0.04 Million Units

Cost Saved thereof 500,000.00 per annum

at the constant Pay Back Period 6 years price of electrcity

As can be seen from the above, the pay back period for such a project is approximately six years at a constant price of electricity. However, with increase in the price of electricity, the pay back period reduces further and possibly end up in full pay back from the fourth year, This means that the Nagar Nigam starts saving money from the fifth year onwards.

The life of these LED fitted Solar PV Systems are any where from 10-15 years, with the life span of LED being as much as 25 years.

b) Replacement of High Mast Tower of 400 W with 125 W LED Fixtures:

Table 35: Commercial Viability Chart for replacement of 400 W Sodium Vapour Fixtures to 125 W LED Fixtures Particulars 400 W Lamps Replacement of 125 LED Lamps Working Hours a day (In Hours) 12 12 Electricity Consumption in kWh per day 4.8 1.5 Annual Power Consumption in kWh 1752 547 Annual Power Saving in kWh 0 1205 Annual Power Consumption of 77 Fixtures in kWh 0 92,785 Life of Lamp (Iun Years) 2 12 Cost of Fixtures (In Rupees) 4500 21000 Replacement costs over the life of the LEDs 27000 0 Total cost of Fixtures over a period of 12 years 3,500 21,000 Annual cost of power savings at Rs. 5/- a kWh 0 6025 Payback period for this replacement 3 1/2 years

c) Replacement of 250 W Sodium Vapour Lamps with 70 Watt LED lamps

Table 36: Commercial Viaibility chart for replacement of 250 W Sodium Vapour Lamps to 70 Watt LED Lamps Particulars 400 W Lamps Replacement of 125 LED Lamps Working Hours a day (In Hours) 12 12 Electricity Consumption in kWh per day 3 0.84 Annual Power Consumption in kWh 1095 306.6 Annual Power Saving in kWh 0 788.4 Annual Power Consumption of 3960 Fixtures in kWh 0 31,22,064 Life of Lamp (Iun Years) 3 12 Cost of Fixtures (In Rupees) 2000 20,000 Replacement costs over the life of the LEDs 8000 0 Total cost of Fixtures over a period of 12 years 10,000 20,000 Annual cost of power savings at Rs. 5/- a kWh 0 1.56 Cr Payback period for this replacement 4 years

d) Replacement of other Sodium Vapour Lamps of 70 Watt to 28 W LED fixtures

Table 37: Commercial Viaibiliity Plan for replacement of 70 W Sodium Vapour Fixtures to 28 W LED fixtures Particulars 400 W Lamps Replacement of 125 LED Lamps Working Hours a day (In Hours) 12 12 Electricity Consumption in kWh per day 0.84 0.33 Annual Power Consumption in kWh 306.6 122.60 Annual Power Saving in kWh 0 183.96 Annual Power Consumption of 3100 Fixtures in kWh 0 5,67,300 Life of Lamp (Iun Years) 3 12 Cost of Fixtures (In Rupees) 2000 20,000 Replacement costs over the life of the LEDs 8000 0 Total cost of Fixtures over a period of 12 years 10,000 20,000 Annual cost of power savings at Rs. 5/- a kWh 0 28.36 lakhs Payback period for this replacement 3 years and 3 months

In short, the total cost of recovery or pay back period for converting all the street lights of Moradabad is a maximum of 4 years. Since the life span of the new fixtures are 12 years at the very minimum, the Nagar Nigam can actually use the money saved by way of electricity bills for development purposes while, it can also keep aside money for the replacement of the lamps at the end of the 12th year.

Water Sector:

For Moradabad town, there are a number of water pumping stations which are under the Nagar Nigam. The total connected load for these water pumping systems is around 1300 kW.

The City also has a water treatment plant, which is primarily to soften the hard water.

The motors used for pumping water are usually bosster pumps to ensure piped water supply for the city.

Most of the motors used in is around 12. 5 Horsepower, though for booster pumps, they also have large horsepower betweent the range of 50-90.

The total energy consumption for water supply for Moradabad district in 2011-12 was roughly 23 Million units and this has been the average consumption of electricity for the period 2008-2012.

The proposal therefore is to replace all the 12.5 HP motors into AC solar pumping system.

There are a total of 20 12.5 HP water pumping systems that consume approximately 15 units per hour of usage of 12 litres of diesel per hours of usage. 87

The total cost of 12. 5 HP Water pumping system used for 10 hours a day for 250 days a year would mean a total electricity consumption of 6,00,000 kWh for 20 pumps per annum. The cost of this at Rs. 5/- per kWh would be Rs. 30,00,000 per annum.

The Capital cost of a 12.5 HP Solar Pumping system will be Rs. 12.5 Lakhs and replacing 20 such pumps with solar pumping system will be Rs. 250.00 Lakhs.

Therefore on a back of the envelope calculation, a total saving of electricity bills of Rs. 30,00,000 per annum, will mean a pay back period of 8 years for replacing all of 12.5 HP pumps to solar water pumping systems at a constant price of electricity. With price escalation in the cost of electricity, the pay back period is expected to be around 5 years.

10.5 Techno Commercial Viability for Energy Efficiency improvements in the Brass Clusters – options and cost

10.5.1 Conversion of Coal Furnace into Bio-mass Furnace:

Since the furnace is used for melting copper and zinc, the temperature in the furnace is in the reigon of 950C.

The following is the commercial viability calculation of converting coal based furnaces into bio-mass based furnace.

Table 39: Commercial Viaibility Plan for Conversion of Coal Based Furnaces in the Brass Industry to Rice Husk Based Furnaces

Source: Bureau of Energy Efficiency

10.5.2 Clustering of Other Brass Units for Solar Roof top Systems:

Out of these 20,000 micro units, a broad survey indicates that close to 100 units can form one cluster, of which 70 units can form a cluster for electricity consumption.

In the entire town of Moradabad, 200 such cluster can come up. 89

The commercial viability of such a project is given below:

Sl No Particulars Units/Cost/kWh 1 Setting up of 200 clusters of 200 kWp Solar Rs. 800 Million Panels 2 The total electricity Generated by 40,000 66.58 Million Units kWp in Million Units (19% PLF Assumed) 3 The total cost of procuring 66.58 Million Units Rs. 199.74 Million from the Electricity Board at Rs. 3/- per kWh The Pay Back Period is Rs. 800 Million / Rs. 4 Years 332.9 Million

Assumption:

Since most of the micro units have domestic connection, we have taken the electricity tariff at only Rs. 3/- per unit.

Based on this, the total pay back period is 4 years, at a constant electricity tariff

However, the pay back period in real sense will be much lower than 4 years due to the following:

a) A huge reduction in distribution losses, as theft of electricity from from Solar Roof Top Systems is not possible b) With this clustering approach, there is a clear distinction made between domestic electricity supply and electricity supply to micro enterprises and therefore the tariff structure could also suitably change c) The cost of Solar Roof Top System has been taken at Rs. 20 Cr per MW, but with the prices falling and considering that the entire 40 MW will not come up in one stretch, the cost of the systems could fall further resulting in a much faster pay back.

10.6 Programmes/Projects or Schemes that could contribute to the programme:

Programmes / Projects / schemes Proposed change in direction and scope in objective(s) of the programmes / projects

Promotion of Solar PV projects on gird or stand alone in de-electrified or energy starved a) Jawaharlal Nehru National Solar communities through Implementation of SPV Mission(JNNSM) based devices like: lanterns, Home lights, street lights, water pumps, power plants, water heaters

Development of Hydropower projects b) Small Hydro Project (SHP)

Promotion of bio-gas, biomass energy c) Biomass Gasifier (BMG)

d) National Biogas & Manure Management Promotion of bio-gas, biomass energy Programme (NBMMP)

Electrifying villages/hamlets not covered under RGGVY scheme through solar, Wind e) Remote Village Electrification (RVE) and Hydro power projects

Wind Assessment, mapping, implementation of projects f) Wind Energy

Effective Implementation of Solar City which can become a model for replication to other g) Solar City Programme town. Reducing grid energy consumption @ 2% per year h). Electrification of new villages/hamlets Power supply to the identified /colonies and Village Energy Security villages/hamlets etc. Programme i) Installation of Pre- Paid Energy Meter Accurate billing, avoid pilferage etc and adopt and/or Internet billing judicious use of power- Energy Conservation

j)Strengthening / modernization of Reduce T & D Losses Transmission and Distribution network. k) Efficiency Improvement Programme of Labeling of appliances and green building BEE programme

91 l) National Energy efficiency Mission Promoting efficiency in the industrial sector

Further, it must be pointed out here that, if the District Administration were to opt for a fully funded scheme, while part funding could come from the Central Government, the state Government also has sufficient schemes where it could use for funding these projects.

CHAPTER - XI

TIME LINES FOR CREATING POLICY FRAMEWORKS

11.1 Introduction

As of any plan, particularly to phase in renewable energy generation for a place which has no electricity generation of its own, may be relatively easy, but requires a plan.

The plan ranges from preparing and adopting plans, with the involvement of various departments but also in organizing funds and importantly aligning itself with current state government projects/programmes and policies and central government projects/programmes and policies.

By and large, most of the proposed programmes for implementation in this plan can be dovetailed with existing programmes of the Central Government and State Government, namely, the National Solar Mission, National Bio-Mass Programme, Remote Village Electrification Programme, the National Energy Efficiency Mission, the National Sustainable Habitat Mission and the programmes of the Bureau of Energy Efficiency.

Further, some programmes can also be dovetailed with the National Rural Employment Guarantee Act, the Rural Development Programme amongst others.

Further, the capital costs for such initiatives would be rather high, but, in a phased implementation plan, the capital costs would also not seem high.

Therefore, the next section has a detailed phase wise implementation plan, which sets the tone for policy and plan formulation to actual implementation.

11.2 Time Lines for Policy Framework Creation

Policy Measures

(2012-2013) 2013-2015 2015-2022

Plan Acceptance

Acceptance of this plan and Inviting Detailed Proposals Commissioning of Projects setting up of a coordinating for Projects in line with the and start of generation: committee comprising of MNRE Solar Mission’s Creating the right policies to District Collector and key Phase II Policy and other ensure appropriate measures officials of Moradabad to renewable energy for distribution and proceed further to develop a programmes and schemes evacuation of renewable framework for energy electricity on the grid implementation

Initiate development of plan/s for implementing the “Solar City” project for Moradabad

POLICY MEASURES FOR SME CLUSTERS

Clustering of SME: Policy Policy Framework that would framework that would cluster direct financial flows SME’s particularly the (subsidies) for SME’s various brass industries to wanting to shift from Coal ensure roof top solar Based Furnace systems to installation for clusters Bio-mass based systems. The policy framewok would also create a network of financial institutions that could finance these projects

MUNICIPAL LEVEL PROGRAMMES

Municipal Level Programmes a. Detailed Mapping and a. Detailed Mapping and a. Detailed Mapping and auditing of all Government auditing of all Government auditing of all Government buildings, AIR, Railways buildings conforming to the buildings conforming to the stations etc… conforming to Energy Conservation Act for Energy Conservation Act for the Energy Conservation Act efficiency potentials in all efficiency potentials in all for Moradabad Government buildings in all Government buildings in the tehsil head quarters of entire length and breadth of Moradabad district Moradabad district b. Implementing of finding of b. Implementing of finding of b. Implementing of finding of the audit to make the the audit to make the the audit to make the buildings energy efficient buildings energy efficient buildings energy efficient compliance in accordance compliance in all other compliance in all with the Energy Government buildings and Government buildings in the Conservation Act in government buildings in all entire length and breadth of Moradabad district headquarters Moradabad accordance with the Energy Conservation Act c Detailed Mapping and c. Detailed Mapping and c. Detailed Mapping and auditing of Street lights for auditing of Street lights for auditing of Street lights for conversion in to CFL/LED conversion in to LED lighting conversion in to LED lighting lighting on iconic and key on all roads tehsil head on all major roads of all roads of Moradabad quarters villages of Moradabad d. Initiating the conversion of d. Initiating the conversion of d. Initiating the conversion of Street lights in to CFL/LED Street lights in to LED Street lights in to LED lighting on iconic and key lighting on all major roads of lighting in all villages of roads of Moradabad Tehsil Head quarters Moradabad district

Building Norms

a. Drafting new building bye- b. Implementing new building c. Strict enforcement of laws incorporating principles bye-laws incorporating building bye-laws of Energy Conservation and principles of Energy incorporating principles of building code Conservation and building Energy Conservation and

code building code

Inter-department Pilot Projects

With the Department of Agriculture and Horticulture Department:

Setting up a chain of cold storage using solar based chilling systems to ensure storage of agriculture and horticulture produce for better marketability of produce

Setting up small agro-based units to process fruits and vegetables grown in Moradabad for wider market access with energy from stand alone renewable energy applications (Small canning unit, de-hydration unit, juicing units….)

With the Department of Animal Husbandry:

Setting up a chain of cold storage using solar based chilling systems to ensure storage of milk and setting up milk cooperatives (there is a shortage of milk in many of the districts and hence there is rampant use of milk powder)

CHAPTER – XII

GHG Emission Trajectory for Moradabad District

12.1 Current GHG Emission Profile of Moradabad District – a back of the envelope calculation

The estimate for GHG emission is primarily a back of the envelope calculation, focused on energy consumption for lighting and heating and does not include transport emissions.

The key sources of GHG emissions for the heating and lighting sector in Moradabad are primarily

 Conventional Electricity (here the calculation is based on supplies being from coal)  Kerosene for lighting and a limited quantity for pumpsets and heating/cooking  Firewood and traditional bio-mass  LPG for cooking and heating  Diesel for pumpsets  Diesel for back up power in the SME Clusters, particularly the bronze and sheet metal industry  Use of Coal and Furnance Oil for Brozne mould creation

For conventional electricity, while we believe that the main source of electricity for Moradabad district is largely from coal fired power plants.

The estimated current usage of fossil fuel based sources of energy are as follows:

Conventional Electricity Supply: 240 MW Traditional bio-mass (Firewood): 41,81,075 tonnes per year Kerosene: 20000 Kilo Litres per year Diesel: 3300 Kilo litres of diesel per year. LPG: 17,000 tonnes of Gas per annum. Coal for furnace: 91,250 tonnes per annum

In View of this the GHG emission from the usage of above is as below:

Sources of Energy GHG emissions per Current Total Estimated unit Consumption Carbon Emission (in tonnes) Conventional 0.82 Kg per kWh 480 Million kWh 39,360 Electricity Supply Kerosene 2.93 Kg per Litre 20000 Kilo Litres 5860 Diesel 2.93 Kg per Litre 33000 Kilo Litres 9669 LPG 2.91 Kg per Kg of 1704 tonnes 4950 LPG Traditional bio-mass 0.25 Kg Per tonnes 41,81,075 tonnes 10450 Coal for Furnace 0,82 kg per tonne of 91,250 tonnes 22,812 Coal Total Emissions 93,101

The All India Emission as on 2010 was 10,07,980 tonnes and in comparison, the emission of Moradabad district was 93,101 tonnes.

12.2 Estimate of Projected GHG emission reduction – BAU vs. Proposed plan

In the Proposed plan, the entire electricity will be from Renewable Energy Sources from 2013, which will mean the carbon emission from the electricity sector will be zero. We are also hoping that with the implementation of this plan, the usage of Kerosene for lighting purpose will also come to zero, which will mean a zero emission from Kerosene from 2014.

With bio-gas replacing firewood, the emission from firewood would also reduce, though the penetration of LPG would increase considerably.

Therefore, the projected emissions post 2018, if the plan is fully implemented is likely to be as follows:

Sources of Energy GHG emissions per Current Total Estimated unit Consumption Carbon Emission (in tonnes) Conventional 0.82 Kg per kWh 0 0 Electricity Supply Kerosene 2.93 Kg per Litre 0 0 Diesel 2.93 Kg per Litre 30000 Kilo Litres 8,790 LPG 2.91 Kg per Kg of 4,260 tonnes 12,396 LPG Traditional bio-mass 0.25 Kg Per tonnes 31,75,500 tonnes 7,930 Coal for Furnace 0,82 kg per tonne of 0 0 Coal

Total Emissions 29,116

Therefore, the emission reduction by 2018, will be reduced by 63,985 tonnes, which is 31.27 percent of the emission in a Business as Usual Scenario.