The Missing Link: DRE can accelerate India’s fight against climate change and extreme poverty
In the central Indian state of Jharkhand, a Farmer Producer Organisation (FPO) invested in a standalone solar powered five metric tonnes cold storage system. This has saved the FPO 150 metric tonnes of wastage per year. It has also increased the farmer’s income by nearly 10 percent. Additionally, cold storage has given farmers the ability to store their produce locally, build their capacity through post-harvest management and overall, have a better hand while dealing with various market forces.
India’s total cold storage requirement is estimated to be 62 million metric tonnes. This is primarily centralised, high on investment and hard to access by small farmers. SELCAP introduces an alternate decentralised approach which is benefiting FPOs and small farmers across the country. It proposes using the power of decentralised renewable energy to power small scale cold storage units. These units improve access, reduce investment cost and make it possible for farmers to own and operate such tech-driven solutions. The farmers also see great savings from reduced transportation costs and food wastage. Their incomes also see an increase as a result of better market negotiation opportunities. The SELCAP report states that in addition to boosting the agricultural economy for the marginalised farmer, this approach can reduce almost 34,000 GWh energy units per year.
Similarly, small and marginal dairy farmers face acute shortage of animal feed which ultimately results in steep increases in milk prices for the consumer. According to the SELCAP report, there is a deficit of 23.4 per cent in the availability of dry fodder, 11.24 per cent in that of green fodder, and 28.9 per cent for feed concentrates. Procuring feed and fodder makes up for a large chunk of the input costs for livestock farmers. One way of offsetting these costs could be by producing the feed on site instead of purchasing it from elsewhere.
The SELCAP report presents a solution for decentralised fodder production units using solar powered hydroponic stations. The report estimates suggest that one kg of hydroponics fodder requires about four litres of water to grow, while traditional fodder of the same quantity would require about 15–20 litres of water. Income increases for the small and marginal farmers owning less than four cattle can be in the range of INR 23,800 to INR 46,000 per annum. Most Indian farmers are small and marginal, owning either a small amount of land or only a few cattle. It is estimated that about 80 million metric tonnes of feed is required per year to feed India’s cattle. If this is provided from decentralised, solar powered hydroponics units, the country can reduce approximately 14,000 GWh of energy units per year.
As Harish Hande, CEO, SELCO Foundation says, “Due to lack of energy driven innovation, the use of energy can result in un-optimized and inappropriate solutions which result in higher expenses and a larger burden on the poor. Current approaches to developmental needs, when not seen through an energy lens, are themselves becoming contributors to climate risks. Through this report we wanted to present an approach and a number of solutions which are decoupling growth from emissions.”
The approach of SELCAP towards decentralised renewable energy driven solutions is more than just replacing the energy source. Gauri Singh, Deputy Director General, IRENA, says, “Unlike large-scale, capital-intensive plans, SELCAP focuses on communities and on lowering the transaction costs for the poor, with customised financial products, that understand their business cycle. Although SELCAP focuses on the needs of today while building the solution, elements for future resilience are embedded in the design, thereby advancing the idea that decentralised renewables, climate action and inclusive development can be synergistic.”
Similar to last mile agricultural cold storage units, as well as hydroponics for fodder production for dairy farmers, the inception report on the Sustainable Energy led Climate Action Program (SELCAP) by SELCO Foundation, brings together evidence that showcases 20 SDG 7 driven solutions. These solutions aim to empower the most vulnerable to adapt to climate change while also setting on a new trajectory of development which is powered by sustainable energy and also mitigates future emissions.
“Climate mitigation cannot ignore the huge energy access gap that still exists. Climate mitigation efforts must include vulnerable communities and emerging markets, and their development aspirations- with adequate financing to back these efforts.”
Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All shares with us
The report has been built from grassroot learnings via implementation of these solutions. It brings together primary research conducted in consultation with over 31 organisations including grassroot NGOs, Micro-Entrepreneurs, Governmental Bodies, Independent Experts, Social Enterprises, Farmer Producer Organisations/Community Based Organisations.
“SELCO Foundation has successfully established the importance of the nexus of SDG7 and other SDGs like health, gender, and livelihoods. They have also added SDG13 into the mix to make all their interventions robust. I am happy to note that many of these interventions are bankable and are financed by the Regional Rural Banks. That clearly shows that banks are willing partners in this inclusive agenda against climate change.”
PVS Suryakumar, Deputy Managing Director at NABARD shares his view on the solution
More than two billion people across the globe lack access to reliable and affordable health services, quality education, respectful livelihood opportunities, and easy market linkages. Inability to avail these basic needs keeps billions in perpetual poverty. Availability of reliable energy is one of the key reasons for the poor not able to avail the above-mentioned services and opportunities in availability of energy that is affordable. More so in recent times, climate related disasters have made the lives of the poor uncertain. New energy pathways need to be designed for this segment of the population to develop and meet their needs, in a climate resilient manner, for well-being, health and livelihood, .
Using the lens of Sustainable Energy, strategies for climate action and inclusive development can be delivered synergistically. SELCO Foundation and the SELCAP program present an easy low hanging fruit that countries and practitioners can adopt and scale for improved adaptation and mitigation to climate change. The report on SELCAP presents a new trajectory of development, which builds ownership at the grassroot and innovates for local systems to be more resilient. It can be done, but the window to do it is small and required urgent action.
The inception report for the ‘Sustainable Energy led Climation Action Program can be accessed here.
Contact: Rachita Misra, rachita@selcofoundation.org or write to info@selcofoundation.org
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