nddb, anand, may 16 harnessing solar power for climate ... · pdf filestrengthening...

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Harnessing Solar Power for Climate Resilient Agriculture Solar Pump Irrigators’ Cooperative Enterprise [SPICE] ડી સૌર ઉ ઉપાદક સહકારી મડળી Strengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, May 16 th , 2017

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Page 1: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Harnessing Solar Power for Climate Resilient Agriculture

Solar Pump Irrigators’ Cooperative Enterprise [SPICE]

ધ ૂંડી સૌર ઉર્જા ઉત્પાદક સહકારી મૂંડળી

Strengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, May 16th, 2017

Page 2: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Solar Pumps: ‘Green’ opportunity or GW threat?

Page 3: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Independent India inherited world’s largest canal infrastructure… Over years, it has emerged as the world’s largest GW user…

Page 4: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

India’s Groundwater Economy

Page 5: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Groundwater Over-Exploitation & Depletion

Page 6: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

India’s Solar Potential

Page 7: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Solar Pump Promotion

87% capital subsidy [later cut to 70%]

95% capital subsidy for farmers waiting

for electric conn.

Plan to solarize 50 lakh agri pumps

75% capital subsidy [yet, few takers!]

Saur Sujala Yojana 95% capital subsidy

[51k pumps]

90% capital subsidy [15 MWp capacity]

Bihar Saur Kranti 90% capital subsidy

Plan to solarize 20 lakh agri pumps

Page 8: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Invidious Energy-Irrigation Nexus

• Free power and groundwater depletion • Zero marginal cost => inefficient use

• Farmers vehemently oppose metering / tariffs

• Bankrupt utilities / gradual de-electrification

• Farmers treated as liability • 4-6 hours farm power per day • Poor quality, disruptions, unreliable • Night-time supply, auto-switches => more wastage • High T&D and commercial losses • Feeder-level anarchy • Domestic users and rural Industries also suffer

Page 9: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Solar Pumps: Opportunity or Threat…?

• IWMI’s ‘intelligent power rationing’ argument • Matching farm power supply to water demand

• Gujarat’s acclaimed ‘Jyotigram Yojana’ • Feeder separation

• 24*7 power supply to villages

• Rationed but high quality supply to farmers

• Strictly enforced, pre-announced supply schedule

• Contracting water markets; higher prices

• New connections to SC/ST/marginal farmers

• Efforts to replicate JGY in other states

• Solar pumps can undo all of this in no time…!!

Page 10: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Solar Pumps: Opportunity or Threat…?

Mindless promotion of off-grid solar pumps will accelerate groundwater depletion like never before…

• 2200-2500 hrs of day-time power

• Impossible to ration supply

• Zero marginal cost

• Zero opportunity cost

• Rapidly declining PV prices will mean soon farmers will not even have to reply on capital subsidies…

Page 11: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Solar Power as Remunerable Crop (SPaRC)

Current Solar Pump Strategy SPaRC Strategy

SIPs are promoted by capital cost subsidy of 80-90%

SIP owners have no power purchase guarantee or FiT

Solar power complements grid power

Capital cost subsidy on SIP’s should be around Rs 40,000/kW

SIP owners should be grid connected, have power purchase

guarantee at Rs 6-8/kWh

Surrender of grid connection or (real or virtual) net metering; so SIP

replaces grid connection

Farmer remains net buyer of grid power

Farmer becomes net seller of power to the grid

Page 12: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months
Page 13: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Complex Issues SPICE Dhundi Experiment

Deadweight of electricity

subsidies: US$ 30

billion/year

Replacing every GWh

through SPICE way reduces

subsidy burden by US$

85000/year.

Local power utility MGVCL saved US$

10,000 upfront and future subsidy of

US $ 58,500.

Poor quality and nightly

power supply to

agriculture

Solar energy is more reliable

than grid power

Not just farmers but the neighbours of

the solar farmers are very satisfied

since they get reliable day time

irrigation.

Perverse incentives

driving groundwater

depletion in western India

Power buy back – powerful

incentive to economise

pumping

~48,000 units sold to grid, avoided

groundwater draft of nearly 200k m3

Carbon footprint of

groundwater irrigation No direct carbon footprint

Avoided 56.5 tonne of CO2 emissions

by replacing diesel and adding green

energy to the grid

Stagnant Income from farming

Farmers earn additional climate proof income from selling electricity

Dhundi Coop. has earned more than US$ 5,000 in the last 12 months of operation by selling to the grid

Page 14: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

₹ 0

₹ 50,000

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0

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Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

Cumulative Bonus Income from IWMI

Cumulative Income from Sale of Surplus Power to MGVCL

Solar Energy (in kWh) Sold to Grid

Solar Energy (in kWh) Used in Irrigation

Page 15: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Impact of Dhundi Cooperative…

[a] Reduced use of diesel for irrigation [b] Injection of ‘green’ power to the electricity grid

5.1

15.2

31.0

56.5

0

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Cumulative GHG Reduction (Tons CO2)

Page 16: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months
Page 17: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

SPaRC: Solar Power as Remunerative Crop

Curtail the carbon footprint of India’s agriculture economy

Offer farmers an additional climate-proof income source

Incentivize farmers to become water and energy efficient

Reduce the dead weight of farm power subsidies

Improve financial viability of Power Distribution companies

Generate ‘green’ energy and contribute to India’s RE target

Page 18: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months

Thank You… Shilp Verma IWMI-Tata Water Policy Program

http://iwmi-tata.blogspot.in

Page 19: NDDB, Anand, May 16 Harnessing Solar Power for Climate ... · PDF fileStrengthening Cooperative Dairying to Meet Future Challenges NDDB, Anand, ... US$ 5,000 in the last 12 months