1. 1 Demand side management and Renewable Energy In India: Capacity Building of CSOs DREC PROJECT Gujarat Chapter Mid Term Review Meeting 6 th January 2012 Presented By- Ankur Brauah VIKSAT, Ahmedabad VIKSAT Nehru Foundation for Development, Ahmedabad, Gujarat VIKRAM SARABHAI CENTRE FOR DEVELOPMENT INTERACTION

2. 2 Outline of the presentation Accomplished project activities Perception Survey Methodology Key findings of the perception survey –General Perception about Climate Change –Awareness/understanding about RE –Awareness about DSM and EE –Willingness to pay –Stakeholder’s response Challenges and opportunities Way forward

3. 3 Project Activities Accomplished Project ActivistQ1Q2Q3Q4Q5Q6 Literature review and Preparation of Questionnaire Local Inception Workshop Baseline Consumer Survey and Analysis State Level Paper RG meeting State Level Training Workshops Consumer Interface Meetings Final Consumer Survey Policy Advocacy Meetings Accomplished Planned

4. 4 The Perception Survey Methodology Quantitative - Survey Method Qualitative - Focus Group Discussion Stakeholders –Household-200 –Commercial-50 –Government-50 –Industrial-50 –Farmer-50 –CSOs-100 Districts –Ahmedabad -113 –Kachchh –174 –Mahesana -106 –Patan - 107

5. 5 General perception and awareness on Climate Change General findings –Climate change/global warming awareness 92.6% of total respondents, 88% of rural respondents and 64% of uneducated are aware about –Priority of Global Warming issue over other development issue 59.8% –16% industrial respondents thinks it is less important issue –48% thinks that it will affect overall living of human Response to statements –Climate change is happening- 96.8% –Climate change is effecting everybody-96.8% –Every individual can do something to adapt to climate change – 85% –Living today is more important than impact of climate change-89.8% –Climate change implications on quality of life of next generation- 85.8%

6. 6 Awareness/understanding about Renewable Energy Highlights of awareness about RE TotalHHUrbanRuralUneducatedFemale 92%85%93%82%60%70% Source of RE SolarWindBiomassBiogasHydroTidal 91.51 79.25 16.98 34.43 33.4925.47 Believes that RE can Improve Environment TotalHouseholdCommercialGovernmentIndustrialFarmer 97.0 95.5 100.0 94.0 96.0 98.0 Cost Effectiveness of RE Equipments ExpensiveComparableLowNo idea 35.6%18.4%12%34% Awareness about RE run electric equipments and use AwarenessUse TotalUrbanRuralTotalUrbanRural 57.5%78%62% 65%45% Reasons of not using RE equipments High initial costPoor Product quality No after sale serviceNo financial incentive Other reasons 47.59.121.219.217.2

7. 7 Major inferences of RE awareness Awareness about RE in rural is lower than urban areas, among women and uneducated population Awareness about RE other than solar and wind is less Awareness about cost effectiveness of RE is not substantial There is a large gap between awareness and practice of RE sources Initial cost and absence of after sale service are the major barriers in adoption of RE

8. 8 Awareness about DSM and EE Power supply problems Frequent power cut Voltage fluctuationBothNoneSupply problem RuralUrban 7.8%14.4%28.6%49.2%55%49% Power supply problem across districts Frequent power cutVoltage fluctuationBothNone Mahesana 12 % 6 % 82 % Patan 13 % 10 % 39 % Ahmedabad 100 % Kachchh 11 % 9 % 40 % EE can reduce power bill HouseholdCommercialGovernmentIndustrialFarmerCSOs 83%86% 92%78%85% Use of EE in HH TotalRuralUrban 58%56%59% Identification of EE products Star ratingBEE labelingNo ideaOther Use of star rating RuralUrban 53%12.5%29.5%6%45%71% Satisfaction over EE products in HH Extremely HighHighMediumLowNot satisfied 7%27%48%172%

9. 9 Major inferences of DSM and EE Power cut and voltage fluctuation are major supply problems Power supply problem is high in rural areas than in urban area Patan and Kachchh has more supply problem There is wide gap between awareness and use of EE products Not many consumers have fair idea about identification of EE products Awareness about star rating is much less in rural consumers Not much EE users are highly satisfied by the EE products

10. 10 Gap between Awareness and Practice

11. 11 Issues of RE and EE

12. 12 Willingness to pay for clean energy Willingness to pay for Clean Energy Total DomesticAgriculture RuralUrban 61.6%61%53.6%54%61.9% IndustrialGovtPrivateCSO'sEducational 83.160.076.353.866.7 MahesanaPatanAhmedabadKachchh 73 84 18 39 0% To 20%20% to 30%30% To 40%40% To 50%50% and ABOVECAN'T SAY 62265215 Willingness to install solar lighting and heater TotalRuralUrban 94.5%69.5%25% Barriers to adoption of renewable energy Govt. should provided more subsidy Invest more in R&D to improve technology Surcharge on other sources of supply Other 48.5462.13.3 Awareness about credit facilities for RE TotalUrbanRural 36.6%39.3%23.8%

13. 13 Major inferences of willingness to pay Rural and agriculture consumers are less willing to pay for clean energy CSOs and Educational institutions are less willing to pay for clean energy Consumers from Ahemedabad and Kachchh is less willing to pay for clean energy Among willing respondents majority are willing to pay up to 20% of additional cost Willingness to use solar appliances is much less in urban areas than in rural areas Govt. subsidy and better R&D are expected by majority of consumers Credit facility for RE is known by very less numbers of consumers

14. 14 Willingness to pay and demand for RE

15. 15 Stakeholder’s Responses Farmers 66% farmers use electricity and 28% uses diesel to run pump set 98% of farmers agrees that diesel and kerosene generates air pollution 22% farmers are using EE pump set but unable to save money as half of the farmers are in fixed rate billing system 64% farmers are not aware of availability of solar pump- none of them using solar pump Households 60% of HH are using EE products Neighbour’s choice is the priority in identifying EE products over star rating Saving in electricity bill is moderate for majority Satisfaction from EE products moderate and less for majority Only 14% HH are using RE run electric appliances RE technology is not available for high power consuming appliances The cost of EE products is high but durability is less, so net saving is not substantial

16. 16 Commercial 84% of commercials are aware of BEE labeling and star rating 20% have conducted energy audit last 2 years 26% have adopted one or other types of EE measures Industries 96% of industries are aware of BEE labeling and star rating 66% have conducted energy audit last 2 years 70% have adopted one or other types of EE measures Govt. Institutions 72% of govt. institutions are aware of BEE labeling and star rating 20% have conducted energy audit last 2 years 40% have adopted one or other types of EE measures CSOs 73 of the CSO thinks global warming is the much more important development issue All CSOs believe promotion of RE will improve environment 35 CSOs are working with Energy related issues Absence of funding and lack of knowledge on the issue are major difficulty for CSOs to work with Energy issue 49 CSOs are unaware of Regulatory Authority and 68 are unaware that regulator is mandated to consult CSOs and while fixing electricity tariff 74 CSOs are interested to work with Energy issue provided support Stakeholder’s Responses

17. 17 ChallengesOpportunities Awareness about RE sources is low among consumers Awareness generation may lead to more penetration of RE and EE practices Available RE technologies are unable to attract consumers The RE technology need to be debated and disseminated Initial cost of RE run appliances is highFinancial incentives, service promotion and technology development issues need to be taken into policy making platforms Lack of after sale services for RE run appliances Industries and other institutional consumers expect incentives from govt. for RE and EE Net monetary saving by EE appliances is perceived to be less Consumers need to be educated about benefits of DSM on power tariff and clean environment Less number of CSOs are working with the energy issues Capacity building of CSOs may take the RE and DSM issues to ground level in a large way Challenges and Opportunities

18. 18 Way Forward Training workshop will be designed to impart knowledge and information about DSM and RE issues to CSOs Awareness about RE sources, Information about RE and EE technology and credit facility will be a key input in consumer interface meetings Addressing the challenge of converting awareness to practice for RE and EE will be the part of state level training workshop Agriculture consumer will be a key stakeholder for promotion of RE and EE practices through consumer interface and follow up actions Subsidy to consumers and R&D assistance in RE technology will be taken to policy advocacy meeting

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