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

THE TEA INDUSTRY IN SOUTH INDIA 250 tea factories Annual production 233 m kgs / yr Cost of energy is 40% of the manufacturing cost

PROJECT OBJECTIVE  To reduce energy consumption from tea processing units in South India, thereby restricting Greenhouse Gases emissions  To remove barriers to energy conservation and energy efficiency that inhibit the realization of large energy saving potential in the tea sector

TEA MANUFACTURE Requires both electrical and thermal energy Baseline energy consumption in south Indian tea factories: Electrical: 135 million KWH / year which is about 5,40,400 KWH / y/ factory Thermal: (mostly firewood) was tons /y or 1450 tons / factory

BARRIERS AND INITIAL SUPPORT Tea industry coming out of recession after a long period so the timing was right Energy never a focus area for cost cutting and factory modernization High scepticism among the sector especially with outsiders looking at energy issues in the industry Solid support from the Tea Board of India

PHYSICAL PROGRESS All tea factories reached through newsletters, group meetings, personal visits of experts, stalls set up in exhibitions etc. high attendance Preliminary energy audits in 250 factories Detailed energy audits in 95 factories Tide Technical Reports (equipment specific post audit) in 100 factories

PHYSICAL PROGRESS One energy lab and four fuel labs set up in tea clusters A set of 10 films on energy efficient interventions in tea industry produced. Will be circulated to all tea factories Energy plantations and small hydro projects initiated Wood gasifier introduced for green tea panning

KNOWLEDGE PRODUCTS Well defined project baseline from data collected from all tea factories in south India. Energy audit reports from 100 factories (about 40% of the factories covered) 100 TIDE technical reports - Equipment and factory specific post audit energy consumption reports Energy score card as a self assessment tool

KNOWLEDGE PRODUCTS 14 newsletters with articles, information and update About 15 power point presentations on energy conservation Directory of energy efficient equipment suppliers Article published in MSME journal

LEARNING Technology a barrier and not access to finance as was understood at the time of project conceptualization. Energy use reform can be initiated through awareness and technical support without any financial incentives The tea sector is extremely demanding and would reject any recommendation that is not backed by adequate data and information.. All risk is dynamic and constantly changing. Decisions on energy use reform are complex and they are not driven by techno economics, equipment specifications or CO2 reduction potential alone. The project has developed some insights into how to gauge the need and the risk perception and constantly modify its intervention strategies.

ACHIEVEMENTS 214 tea factories purchase 1014 new energy efficient equipment in the project period with an investment of US$ 3 million Interventions currently saving 10 million KWH / yr and 25,000 tons firewood yr valued at Rs crores Shift to sustainable fuel – briquette consumption increased by 30,000 tons in two years Multi stakeholder engagement strategy – govt, civil society, industry and academia working together in harmony with a common goal All knowledge on energy efficiency brought into public domain Repeated requests from Assam and Darjeeling tea associations for a similar intervention. Tea Board promises support.

For more information on this project contact: Mr R Ambalavanan, Executive Director, Tea Board and National Project Director, Shelwood, Coonoor Club Road, Coonoor , Nilgiris, Tamil Nadu. Tel: / ; Ms Svati Bhogle, National Project Manager, TIDE. Tel Mr Srinivasan Iyer, Team Leader, Energy and Environment Unit, UNDP, 55, Lodhi Estate, New Delhi. Tel: ;