Catalysing Leadership on Efficient Bagasse Processing: Case Study on Pakistan Sugar Industry

Transcription

1 Catalysing Leadership on Efficient Bagasse Processing: Case Study on Pakistan Sugar Industry Qazi Sabir Iqbal Hamid Trust, Pakistan Areej Riaz - CDKN ALP Regional Workshop, October 2015 Climate and Development Knowledge Network 1

2 Objectives Provide an overview of LEDS in Bagasse processing Share learning of what worked well and didn t work well in Pakistan Explore next steps towards ensuring long term, sustainable application of LEDS for crop processing Climate and Development Knowledge Network 2

3 Efficient Processing in Sugar Industry

4 Sugar Production The Process Harvesting Source: CSR Australia Climate and Development Knowledge Network 4

5 Sugar Production Aiming for Efficiency High Pressure Cogeneration Technology Consumes 46% less bagasse for the same amount of electricity production compared to conventional low pressure technology (23 bars vs. 66 bars) Can generate up to 1 MW of electricity using 5.5 tons of steam compared to 11 tons of steam consumed by low pressure technology Climate and Development Knowledge Network 5

6 Sugar Industry in Pakistan

7 Overview of Sugar Industry in Pakistan UNIT Agriculture is integral to economy in Pakistan: 24% of GDP 50% of labor force Largest source of foreign exchange earnings Sugar is the second largest agro-based industry - 86 mills Electricity shortfall = 4000MW (2% of GDP loss) Potential of electricity generation to grid by sugar industry = 1000 MW 3 Climate and Development Knowledge Network 7

8 Things are changing Regulations: - National Policy for Power Cogeneration, MoWP - Upfront tariff, NEPRA Framework for Power cogeneration 2013, AEDB Financial institutions: Scheme for Financing Power Plants Using Renewable Energy, State Bank of Pakistan Government interest: Ministry of Climate Change led initiative on NAMA for sugar industry International Support: Switch Asia project - capacity building, regulatory aspects, financial access MoWP: Ministry of Water and Power NEPRA:National Electric Power Regulatory Authority AEDB: Alternative Energy Development Board Climate and Development Knowledge Network 8

9 One step back, two steps forward - Almoiz Leading by Example - JDW Two bagasse-based, HPC power plants capacity of 53 MW in 2014 Supplying to national grid under long-term Energy Purchase Agreements executed with the Central Power Purchasing Agency First to switch to HPC technology Two crop cycles lost, incurring huge losses Negative impact on sugar mills and technology providers In the process to implement 41 MW cogeneration facility Climate and Development Knowledge Network 9

10 Upcoming HPC (Sugar Industry) Power Plants listed by AEDB S.No Project Company Capacity (MW) Current Status 1. M/s Chiniot Power Ltd at Chiniot, Punjab MW EPA & IA signed 2. M/s RYK Mills Limited (RYKML) at Rahim Yar Khan, Punjab 30MW LoS issued. Financial close achieved COD to be achieved by CPPA EPA, IA and GoP Guarantee have been signed. 3. M/s Hamza Sugar Mill Limited at Khanpur, District Rahim Yar Khan, Punjab Financial Closing declaration is at review stage. 15 MW Achieved LoI milestones. LoS issued. 4. M/s Alliance Sugar Mills Ltd at Rasheedabad, Ubauro, District 19 MW LoI issued. Ghotki, Sindh 5. M/s Layyah Sugar Mills ltd at Karoor Road, District Layyah, Punjab 41 MW LoI issued. 6 M/s Safina Sugar Mills Ltd at 03-KM Chiniot 10 Sargodha 20 MW LoI issued. Road, Lalian, District Chiniot, Punjab 7. M/s Almoiz Industries Ltd at Adda Hameed Kot, District Mianwali, Punjab 36 MW LoI issued. 8. M/s Etihad Power Generation Limited at, Mouza Karamabad, District 67 MW LoI issued. Rahim Yar Khan, Punjab 9. M/s Shahtaj Sugar Mills Ltd at, Mandi Bahauddin, Punjab 15 MW LoI issued. 10Climate M/s and Chanar Development Energy Knowledge Limited, Network District Faisalabad 22MW LoI Issued. 10

11 Lessons learned and next steps Catalyzing Leadership helps scale up for LEDS Sugar industry is taking action in silo and on their own. The only way to ensure efficient processing is taken up by the majority is by ensuring buy-in and building drive in leaders (associations ) and champions (role models/change makers) Low risk factors and higher profit margin can mobilize investors Low profits (low interest rate) and high risk (industries performance) are among the reasons why financial institutions aren t investing in HPC technology in Pakistan. Risk profiling and covering credit risk from other sources will help mobilize investment Building on and multiplying interest Industries have expressed interest for CDM benefits which can be tied to tech uptake through NAMA and related tools. Relevant regulatory authorities and industries need to include relevant capacity to ensure tech friendly regulations are produced. Climate and Development Knowledge Network 11

12 We welcome your feedback and questions

13 This document is an output from a project funded by the UK Department for International Development (DFID) for the benefit of developing countries. However, the views expressed and information contained in it are not necessarily those of or endorsed by DFID, which can accept no responsibility for such views or information or for any reliance placed on them. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, the Climate and Development Knowledge Network s members, the UK Department for International Development ( DFID ), their advisors and the authors and distributors of this publication do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Copyright 2010, Climate and Development Knowledge Network. All rights reserved.