Market Development and Promotion of Solar Concentrators Based Project Document

ACRONYMS AND ABBREVIATIONS
APR
AWP
BAU
BEE
BIS
CBB
CDM
CII
CP
CPAP
CPC
CPRI
CSH
CSP
CSTB
C-WET
DEA
DPR
DST
EOI
EOP
ERC
ESCOs
FACE
Fraunhofer ISE
FSP
FYP
GBC
GEF
GHG
GIZ
GOI
GW
IEA
IIT
IITB
INR
IREDA
ISO
ITW
JNNSM
kgoe
kWth
LFR
M&E
MNRE
MoEF
Mt
MTE
Mtoe
MW
NABARD
NAPCC
NFTDC
NPC
NPD
NPM
OECD
Annual Project Review

Annual Work Plan
business-as-usual
Bureau of Energy Efficiency
Bureau of Indian Standards
Central Boilers Board
Clean Development Mechanism
Confederation of Indian Industries
Country Program
Country Programme Action Plan
Compound Parabolic Concentrator
Central Power Research Institute
Concentrated Solar Heating
Concentrator Solar Power
Centre Scientifique et Technique du Btiment
Center for Wind Energy Technology
Department of Economic Affairs
Detailed Project Report
Department of Science and Technology
Expression of Interest
End of Project
Evaluation Resource Center (UNDP)
Energy Service Companies
Fund Authorisation and Certification of Expenditures
Fraunhofer Institute for Solar Energy Systems
Full Scale Proposal
Five Year Plan
Green Business Centre
Global Environment Facility
greenhouse gas
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ, formerly GTZ)
Government of India
Giga Watt
International Energy Agency
Indian Institute of Technology
Indian Institute of Technology Bombay
Indian rupee (currency of India)
Indian Renewable Energy Development Agency
International Organization for Standardization
Institute for Thermodynamics and Thermal Engineering, University of Stuttgart,
Germany
Jawaharlal Nehru National Solar Mission
kg of oil equivalent
kilo Watt Thermal
Linear Fresnel Reflector
Monitoring and Evaluation
Ministry of New & Renewable Energy
Ministry of Environment and Forests
Million tonnes
Mid-Term Evaluation
Million ton of oil equivalent
Megawatt
National Bank for Agriculture and Development
National Action Plan on Climate Change
Non Ferrous Technology Development Centre
National Project Coordinator
National Project Director
National Project Manager
Organisation for Economic Co-operation and Development
ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)
PAC
PCRA
PIF
PIR
PMU
PPG
PPP
PPR
PSC
PTC
QPR
R&D
RGGVY
RPO
RTA
SBAA
SEC
SERC
SNA
tCO2
ToRs
UAC
UNDAF
UNDP APRC
UNDP CO
UNDP
UNFCCC
USAID
USD or US$
Project Advisory Committee

Petroleum Conservation Research Association
Project Identification Form
Project Implementation Reports
Project Management Unit
Project Preparatory Grant
Purchasing Power Parity
Project Progress Reports
Project Steering Committee
Parabolic Trough Concentrator
quarterly progress reports
Research and development
1
Rajiv Gandhi Grameen Vidyutikaran Yojana
Renewable Purchase Obligation
Regional Technical Advisor (UNDP)
Standard Basic Assistance Agreement
Solar Energy Centre
State Electricity Regulatory Commission
State Nodal Agency
tonne of carbon dioxide
Terms of Reference
Unit Abatement Cost
UN Development Assistance Framework
UNDP Asia Pacific Regional Centre
UNDP country office
United Nations Development Programme
UN Framework Convention on Climate Change
US Agency for International Development
US Dollar
RGGVY is Government of Indias programme for rural electrification.
TABLE OF CONTENTS
PART A. SITUATION ANALYSIS........................................................................................................... 4

1.
2.
3.
4.
CONTEXT AND GLOBAL SIGNIFICANCE: ENVIRONMENTAL, POLICY AND INSTITUTIONAL ............................... 4

CONCENTRATED SOLAR HEAT FOR PROCESS APPLICATIONS AND BASELINE ANALYSIS............................. 9
BARRIER ANALYSIS ......................................................................................................................... 20
KEY STAKEHOLDERS ....................................................................................................................... 23
PART B. PROJECT STRATEGY............................................................................................................ 27

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
PROJECT RATIONALE, DESIGN PRINCIPLES AND STRATEGIC CONSIDERATIONS ............................. 27

POLICY CONFORMITY AND COUNTRY OWNERSHIP ................................................................................ 28
PROJECT OBJECTIVES, OUTCOMES AND OUTPUTS ................................................................................ 28
KEY INDICATORS, RISKS AND ASSUMPTIONS ....................................................................................... 46
COST-EFFECTIVENESS; GEF INCREMENTAL REASONING ........................................................................ 48
SUSTAINABILITY AND REPLICABILITY .................................................................................................. 49
PROJECT RESULTS FRAMEWORK ....................................................................................................... 51
TOTAL BUDGET AND WORK PLAN..................................................................................................... 62
MANAGEMENT ARRANGEMENTS ..................................................................................................... 71
MONITORING FRAMEWORK AND EVALUATION ................................................................................... 75
LEGAL CONTEXT............................................................................................................................ 78
PART C. ANNEXES............................................................................................................................ 79
ANNEX A. RISK ANALYSIS ....................................................................................................................... 79
ANNEX B. AGREEMENTS........................................................................................................................ 85
ANNEX C. TERMS OF REFERENCE .............................................................................................................. 88
ANNEX D. EMISSION REDUCTIONS CALCULATION ......................................................................................... 91
ANNEX E. SOLAR CONCENTRATOR TECHNOLOGIES ...................................................................................... 93
ANNEX F. SUMMARY OF 11 ENERGY AUDITS & 4 INDIAN CSH CASE STUDIES ............................................... 94
ANNEX G. LIST OF CSH INSTALLATIONS IN INDIA ....................................................................................... 101
ANNEX H. SUMMARY REPORT ON STAKEHOLDERS CONSULTATIONS.............................................................. 105
ANNEX I. LIST OF CSH MANUFACTURERS ................................................................................................. 108
ANNEX J. LIST OF LEADING INTERNATIONAL GROUPS INVOLVED IN TESTING OF SOLAR CONCENTRATORS ............. 110
ANNEX K. SEQUENCE OF ACTIVITIES FOR DEMONSTRATION AND REPLICATION PROJECTS .................................. 111
ANNEX L. PROJECT ANNUAL TARGETS............................................................................................... 113
PART A. SITUATION ANALYSIS

1.
CONTEXT AND GLOBAL SIGNIFICANCE: ENVIRONMENTAL, POLICY AND

INSTITUTIONAL
Indias Energy Scenario
1.
India is currently the second fastest growing major economy and is the fourth largest in the
world in purchasing power parity (PPP) terms, with steady progress achieved since the start of
2
economic liberalisation reforms in 1991 . The International Monetary Fund predicts 8.3 % growth for
3
India for the year ending 31 March 2011 . The Eleventh Five-Year Plan (2007-2012) predicts an
energy demand of 547 Mtoe in 2011-12 and between 1,350-1,700 Mtoe by the year 2030. The per
4
capita primary energy consumption in India in 2008 was about 540 kgoe/year, which is well below
that of developed countries. While the countrys per capita energy consumption will remain much
lower than that of industrialized countries for the foreseeable future, Indias total energy consumption
is expected to continue to increase significantly for many decades as it continues to develop.
2.
The industrial sector is the second largest energy consuming sector in India after the
residential sector. Industrial sector demand was 114.8 Mtoe of energy in 2008, which is 28% of the
total energy demand of the country5. Growth in industrial energy demand is projected to grow at a rate
of 4.7% per year during the period of 2005-2015. International Energy Agency (IEA) projections are
that the industrial sectors energy demand will increase to 34% of Indias total energy demand in
20306. Electricity is a relatively smaller constituent of industrial energy demand compared to other
major economies; in 2008, only 21% of industrial energy demand was in the form of electricity (Figure
1). The rest of the demand was met by fuels coal, biomass, oil products and gas, which indicate that
a large amount of energy in the industrial sector is used to provide thermal energy/heat. Oil products
accounted for 20% of total industrial demand.
Electricity
21%
Coal
31%
Biomass
25%
Gas
3%
Oil products
20%
Figure 1: Indian Industrial Demand by Fuel Type, 2008

Total Industrial Energy Consumption (2008) = 114.8 Mtoe [Source: IEA]
3.
Domestic production of crude oil in India has remained at similar levels during the last two
7
decades; it was 32.2 Million tonnes (Mt) in 1990-91 and was 33.2 Mt in 2005-06 . The combination of
http://en.wikipedia.org/wiki/Economy_of_India
http://www.ibef.org/artdisplay.aspx?tdy=1&cat_id=60&art_id=27253
4
http://www.iea.org/stats/indicators.asp?COUNTRY_CODE=IN accessed on 25.12.2010
5
International Energy Agency, http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=IN accessed on 15.01.2011
6
International Energy Agency. World Energy Outlook 2007.
7
Integrated Energy Policy: Report of the Expert Committee, Government of India, Planning Commission, August 2006.
3
rising oil consumption and relatively flat production has left India increasingly dependent on imports to
meet its petroleum needs. In 2009, India was the sixth largest net importer of crude oil in the world,
importing about 70 per cent, of its needs. India is expected to become the fourth largest net importer
of oil in the world by 2025, behind the United States, China, and Japan. This raises serious concerns
about Indias energy security, in particular its ability to physically source the necessary oil
requirements, the impact of any constrained global supply, and the impact of any consequent increase
in oil prices on the Indian economy.
4.
Increased energy consumption will lead to more greenhouse gas (GHG) emissions; in
particular, given the predominant usage of coal in the countrys energy sector. India's
GHG emissions rose by 58 per cent between 1994 and 2007 from 1,252 million tonne CO2e in 1994 to
8
1,905 million tonne in 2007 at a compounded annual growth rate of 3.3% . Per capita GHG emissions
9
are still relatively low, at 1.25 tonnes of carbon dioxide equivalent (CO2e) per person in 2008.
National Programmes on Renewable Energy and Country Drivenness

5.
India has an excellent potential to accelerate the use of its renewable resources to power
its growing economy with a more secure and affordable energy supply. The Government of India
recognizes that on-going aggressive development of its renewable energy resources is critical to
ensure that it is able to meet both its economic and environmental objectives, and it has promoted this
renewable energy development through a wide range of policies and actions.
6.
The Ministry of New and Renewable Energy (MNRE) is the nodal ministry of the
Government of India for all matters related to new and renewable energy, and MNRE has evolved
from the Commission of Additional Sources of Energy that was established in 1991. The Ministry
works in close collaboration with state level renewable energy development agencies (State Nodal
Agencies - SNAs). The Ministry has been instrumental in setting up and supporting a wide range of
institutions to develop and promote renewable energy technologies and applications in India. These
include public financial institutions such as the Indian Renewable Energy Development Agency
(IREDA) and research institutes such as the Solar Energy Centre (SEC), Center for Wind Energy
Technology (C-WET), and Sardar Swaran Singh National Institute of Renewable Energy, amongst
others.
7.
The MNRE reports that, as of June 2010, India has over 17.5 GW of installed renewable
electricity generation capacity, which is approximately 10% of Indias total installed power generation
capacity. Wind represents 11.8 GW, small hydro represents 2.8 GW, and the majority of the
remainder is from biomass installations. PV installations have reached 15 MW of cumulative capacity
installation for both on- and off-grid applications. In the current, Eleventh Five-Year Plan (Eleventh
Plan; 2007-2012), the Government of India targets capacity additions of 15 GW of renewable energy,
which, if achieved, would bring the cumulative installed capacity to over 25 GW in 2012.
10
8.
The Government of India has enacted several policies to support the expansion of
renewable energy:
o Electricity Act 2003: Mandates that each State Electricity Regulatory Commission (SERC)
must establish minimum renewable power purchases; allows for the Central Electricity
Regulatory Commission to set a preferential tariff for electricity generated from renewable
energy technologies; and provides open access of the transmission and distribution system to
licensed renewable power generators.
o National Electricity Policy 2005: Allows SERCs to establish preferential tariffs for electricity
generated from renewable sources.
India: Greenhouse Gas Emissions 2007, Ministry of Environment and Forests, May 2010
10
Indian Renewable Energy Status Report. Background paper for DIREC 2010. NREL/TP-6A20-48948 October 2010
9
National Tariff Policy 2006: Mandates that each SERC must specify a renewable purchase
obligation (RPO) with distribution companies in a time-bound manner with purchases to be
made through a competitive bidding process.
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) 2005: Supports extension of electricity
to all rural and below poverty line households through a 90% subsidy of capital equipment
costs for renewable and non-renewable energy systems.
Eleventh Plan 20072012: Establishes a target that 10% of power generating capacity shall
be from renewable sources by 2012 (a goal that has already been reached); it also supports
the phasing out of investment-related subsidies in favour of performance-oriented incentives.
9.
In June 2008, Indias first National Action Plan on Climate Change (NAPCC) was
released. It outlined existing and future policies and programs addressing climate mitigation and
adaptation. The plan identifies eight core National Missions running through to 2017. The Jawaharlal
Nehru National Solar Mission (JNNSM) is part of the NAPCC. JNNSM has a target for the deployment
2
of 20,000 MW of solar power, 20 million m of solar thermal collector area and 20 million solar lighting
systems by 2022.
10.
The objective of JNNSM is to create a policy and regulatory environment which provides a
predictable and effective incentive structure that enables rapid and large-scale capital investment in
solar energy applications and encourages strong technical innovation and the lowering of costs. The
th
Mission will adopt a 3-phase approach, spanning the remaining period of the 11 Five Year Plan
th
th
(FYP) and first year of the 12 FYP (up to 2012-13) as Phase 1, the remaining 4 years of the 12 Plan
th
(2013-17) as Phase 2 and the 13 FYP (2017-22) as Phase 3. At the end of each FYP, and mid-term
th
th
during the 12 and 13 Plans, there will be an evaluation of JNNSM progress and a review of capacity
and targets for subsequent phases to be based on emerging cost and technology trends, both
domestic and global. MNRE is running a subsidy programme for CSH systems in the context of and to
support the goals of the JNNSM.
Table 1: Targets under JNNSM
S. No.
Application
Segment
Target for Phase I

(2010-13)
Solar collectors
7 million m
Off grid solar

applications
200 MW
1,000 MW
2,000 MW
Utility grid power,

including roof top
1,000-2,000 MW
4,000-10,000 MW
20,000 MW
Target for Phase

II (2013-17)
15 million m
Target for Phase

III (2017-22)
20 million m
Note: There are no specific targets for CSH. But the tentative targets are 25,000 m , 50,000 m and 75,000 m
2
in each phase respectively. As of 2007, the installed capacity of CSH is about 5,000 m .
11.
The mission will be implemented by an autonomous Solar Energy Authority and (or) an
autonomous and enabled Solar Mission, embedded within the existing structure of MNRE. Phase I of
the three-phase programme has already been approved by the government and is underway, with a
budget of INR.43.37 billion ($950 million) [@ 46.65 INR = 1 USD] approved.
Concentrated Solar Heating (CSH)

12.
India is endowed with a vast solar energy potential. About 5,000 trillion kWh per year of
solar energy is incident over Indias land area, with nearly all of India receiving an average 5-7
2
11
kWh/m /day (figure 2). The abundant solar radiation, clean character of solar energy, high cost of
11
Jawharlal Nehru National Solar Misin, Misin Document, Government of India
fossil fuels and negative emission consequences of fossil fuel consumption along with large
o
requirements for process heat below 250 C are the key drivers of the strong focus on the development
of solar thermal applications in India. The solar water heating industry in India is fairly well developed
and is already on an accelerated growth path. The use of solar concentrators to meet the process
heat requirement of community, industrial and commercial establishments (concentrated solar heat
CSH) is an emerging and exciting market opportunity in India, and is the target of this project.
Figure 2: Global Solar Radiation in kWh/m - India

13.
A range of Indian organizations from the voluntary sector, academia and from
commercially focused entrepreneurs, and all with the support of MNRE - in the last two decades have
done a considerable amount of the necessary ground-work in terms of technology development and
market promotion for solar concentrators for process heat applications (CSH) in India. This work has
led to the commercial emergence of two reasonably mature concentrated solar heat (CSH)
technologies in India, viz.,
Fixed focus parabolic dish (e.g. Scheffler dish)
Moving focus parabolic dish (e.g. ARUN dish)
14.
The promotion of CSH in India is part of the off-grid programme under JNNSM. MNRE is
2
2
providing a capital subsidy of INR 5,400/m (~ USD 116) and INR 6,000/m (~ USD 129) for CSH
12
systems with single-axis and double-axis tracking respectively . This capital subsidy/unit area of
collector is based on the assessment of MNREs benchmark cost of collectors. Alongside the capital
subsidy, MNRE is also offering a soft loan at a very attractive - interest rate of 5%.
12
Guidelines for off-grid and decentralised solar applications, Ministry of New and Renewable Energy, dated 16.06.2010.
15.
India has witnessed a high growth in renewable energy (table 2) in the last decade.
However, compared to other MNRE programmes in renewable energy (e.g. wind power), which have
been promoted for a much longer time and have achieved large capacity additions, the CSH
programme is relatively new and is smaller in size.
13 14
Table 2: Growth in Renewable Energy in India ,

Type of renewable
Capacity addition
Up to 2002
energy technologies
during 2002-07
Wind Power
1,667 MW
5,415 MW
Small Hydro Power
1,438 MW
520 MW
Biomass Power
368 MW
750 MW
2
2
Solar Water Heaters
0.68 million m
1.2 million m
2
CSH
negligible
5,000 m
India and Climate Change

16.
India is undertaking a wide range of initiatives to address the threat of climate change on
issues ranging across forestry, glaciology, energy efficiency and climate change mitigation technology.
India is an active participant in international negotiations on climate change under the UN Framework
Convention on Climate Change (UNFCCC). The Ministry of Environment and Forests (MoEF) is the
UNFCCC focal point as well as the operational focal point of the Global Environment Facility (GEF),
while the Department of Economic Affairs (DEA) of the Ministry of Finance is the GEF political focal
point.
17.
The eight missions under Indias NAPCC are, National Solar Mission, National Mission for
Enhanced Energy Efficiency, National Mission on Sustainable Habitat, National Water Mission,
National Mission for Sustaining Himalayan Ecosystems, National Mission for a Green India, National
Mission for Sustainable Agriculture, and National Mission on Strategic Knowledge for Climate Change.
The NAPCCs relevance relating to this project includes:
Achieving national growth objectives through a qualitative change in direction that enhances
ecological sustainability, leading to mitigation of greenhouse gas emissions;
Devising efficient and cost-effective strategies for end-use demand-side management.
Developing new and innovative forms of market, regulatory and voluntary mechanisms to
promote sustainable development.
Assistance by UNDP in the Area of Environment and Energy
18.
The India UN Development Assistance Framework (UNDAF) provides the objectives of
the UN systems assistance to India for the period 2008-2012. The over-arching objective of the
current India UNDAF is promoting social, economic and political inclusion for the most
disadvantaged, especially women and girls and the specific UNDAF goals are in line with the national
priorities of the Government of Indias Eleventh FYP. Regarding environmental aspects, Outcome 4 of
the UNDAF mentions By 2012 the most vulnerable people, including women and girls and
government at all levels have enhanced abilities to prepare, respond, and adapt/recover from sudden
and slow onset disasters and environmental challenges.
19.
UNDP was an active partner in the development of the UNDAF and is also a lead agency
for many of the thematic areas of interventions by the UN system in India under UNDAF. UNDP will
also continue to support the Indian governments efforts towards meeting its commitments under
relevant multilateral agreements through a two-pronged approach involving the leveraging of
13
14
XIth Plan Proposals for New and Renewable Energy, Ministry of New and Renewable Energy, December 2006.
NREL. Indian Renewable Energy Status Report, October 2010.
additional environmental finance and supporting activities on the ground that will safeguard
environmental resources. A special focus will be placed on energy efficiency in order to contribute to
the reduction of greenhouse gas emissions in energy intensive industries, transport and the
commercial sector, where a burgeoning population and on-going strong economic growth have
resulted in a growing gap between energy demand and the indigenous and sustainable energy supply
capacity of India.
20.
The Government of India, through its designated nodal department, the DEA, has
exercised the necessary national ownership and direction of UNDP program activities by approving
and signing the Country Programme Action Plan (CPAP) 2008-2012 with UNDP. The CPAP aligns
with the Indian governments Eleventh FYP as it stresses the need to ensure that growth is resource
efficient and environmentally benign in key sectors such as industry, infrastructure and agriculture.
The several multilateral environmental agreements to which India is a signatory climate change,
biodiversity, desertification, chemical management and ozone depleting substances - offer an
enormous opportunity to address global environmental concerns through appropriate action at Indian
national and local levels. The various policy instruments under these agreements (e.g., the Global
Environment Facility, the Multilateral Fund for the implementation of the Montreal Protocol, the Clean
Development Mechanism) are being increasingly used to leverage financing and additional support in
terms of the deployment of state-of-art technologies and capacity development in India.
21.
Under the UNDAF Outcome 4; the Country Program (CP) 2008-2012 has as CP outcome
4.3 Progress towards meeting national commitment under multilateral environmental agreements
with the related output strengthened capacity for low carbon development and sustainable
management of natural resources, while the CPAP specifically refers to GEF as source of funding
through UNDP for climate-related activities.
2.
CONCENTRATED SOLAR HEAT FOR PROCESS APPLICATIONS AND BASELINE

ANALYSIS
22.
Solar concentrator systems use lenses or mirrors to focus a large area of sunlight onto a
small area and thus it is possible to achieve higher temperatures than are possible with nonconcentrator technologies (figure 3). The use of solar concentrators for power generation (CSP) and
for process heat generation (CSH) is not new, where in 1912 the first parabolic trough collectors were
used for steam generation to run a 45 kW steam engine pump in Meadi, Egypt and in the 1960s, the
first linear Fresnel collectors were developed in Europe. Since the first oil shocks of the modern era
(1973/74 and 1979/80) a range of solar concentrator technologies have been developed and
deployed, with a primary focus on power applications (concentrator solar power CSP). In California
(USA) nine parabolic trough power plants were built between 1984 and 1991 to produce electricity
with a total capacity of 354 MW, and these plants are still successfully operating today. Subsequently,
two further power plants of 50 MW each (using the same basic technology) were built in 2006 in
Spain, and many more are planned in a number of countries, including India. CSH applications use
the same basic mirrors and technologies as CSP applications but can be much less expensive as fluid
temperatures required are in the range of 120-250C (the focus of this UNDP GEF MNRE CSH
project) rather than the much higher temperatures required for viable CSP projects. India accounts for
70 of the 100 CSH applications installed worldwide to date. India is one of the most promising
countries for CSH large scale deployment as many of its industries are at a small and medium scale, a
scale below where coal fired thermal heat supply systems are best deployed, and where clean
burning, controllable and low cost natural gas is not widely reticulated to industrial zones as is the
case in many other countries. CSH technologies and applications have experienced growing interest
and a large increase in actual working applications from around the year 2000 as global oil prices
have rose.
Figure 3: Use of mirrors for concentrating solar energy

23.
The current interest in promoting CSH technologies arises from the fact that two third of
industrial end energy consumption is thermal energy (process heat). One third of industrial process
heat demand is below 200C which suits the integration of solar concentrator systems in process heat
applications. Typical temperature requirements of industrial processes are shown in the table below.
Table 3: Typical temperature requirements of common industrial processes
Industrial Sector
Process
Food and Beverages
Drying
Washing
15
Pasteurizing
Boiling
Sterilizing
Heat Treatment
Cleaning
30 - 90
40 - 80
80 - 110
95 - 105
140 - 150
40 - 60
60 - 90
Washing
16
Bleaching
Dyeing
Boiling
Distilling
Various
processes
40 - 80
60 - 100
100 - 160
95 - 105
110 - 300
120 - 180
Metal treatment
(galvanizing, anodizing,
and painting)
Textile Industry
Chemical Industry
Rubber Industry
Vulcanization
All Sectors
Pre-heating
feed-water
Temperature range (C)
chemical
17
of
170
boiler
30 - 100
15
Pasteurization is a process of heating food, usually liquid, to a specific temperature for a definite length of time, and then
cooling it immediately. This process slows microbial growth in food.
16
Bleaching is one of the processes during textile manufacturing in which fabric is bleached to make it whiter and lighter
(remove the gum if it is in yarn stage or remove colours on the fabric). Hot water is required for the bleaching process.
17
Vulcanization is a chemical process for converting rubber or related polymers into more durable materials via the addition of
sulfur or other equivalent curatives.
10
24.
It must be noted that the temperature given in the table above is the process temperature
required for a specific operation. In all these processes, heat is provided at the user point through a
working fluid which is generally pressurized hot water, steam, hot air or hot oil. For heat transfer to
take place, the temperature of the energy carrier must be higher than the required process
temperature.
25.
o
o
o
o
o
There are five main solar concentrator technologies of relevance to this CSH project: Vacuum tube collectors with a CPC (Compound Parabolic Concentrator)
Parabolic Trough Concentrator (PTC)
Linear Fresnel Reflector (LFR)
Parabolic dish with fixed focus (e.g. Scheffler)
Parabolic dish with moving focus (e.g. Arun)
26.
A detailed description of the five solar concentrator collector technologies used in CSH
applications is provided in Annex E. The five technologies differ considerably in their output
(temperature, specific thermal power), cost, module size, area required and weight. Each of these
parameters has a bearing on the selection of the CSH technology used for a particular application.
While CPC collectors and Scheffler (a type of parabolic dish with fixed focus) are better suited for
temperatures lower than 130C and 150C respectively, the other three technologies can deliver
higher temperatures of up to 250C. CPC collectors have the additional advantage that they also
utilise diffuse solar radiation18. Some of the salient features of these technologies are given in Table 4.
Table 4: Comparison of the five CSH technologies
Collector type
CPC vacuum tube
Parabolic dish with fixed
focus (e.g. Scheffler)
Parabolic dish with moving
focus (e.g. ARUN)
Parabolic trough
Linear Fresnel
19
Collector temp
o
( C)
90-130
Specific thermal
20
2
power (kW/m )
0.60-0.65
100-150
0.21-0.31
130 (China);
450-900 (Europe)
250-300 (India)
150-250
0.34-0.50
500-600 (India)
120-250
100-200
0.50-0.56
0.50-0.56
650 (Europe)
650-900 (Europe)
Cost (US $/ m )
27.
In practice, the world-wide experience to date in actual working CSH applications is rather
limited. A survey conducted under the IEA Task 33 Solar Heat for Industrial Processes in 2007,
showed that there were then about 10 CSH installations world-wide (the survey excluded India). As
per the most updated information from MNRE, there are around 70 CSH installations in India (refer
Annex G for the list of the installations). It is estimated that there are around 100 working CSH
installations worldwide. This places India as one of the leading countries in the practical CSH market
deployment domain. The current experience in CSH applications, sector wise is summarized below in
Table 5.
18
As sunlight passes through the atmosphere, some of it is absorbed, scattered, and reflected by air molecules, water vapor,
clouds, dust from human activities and environmental changes, pollutants, smoke from forest fires, and dust from natural
sources and volcanoes. This is called diffuse solar radiation. The solar radiation that reaches the Earth's surface without being
diffused is called direct beam solar radiation. Most solar concentrators are only able to utilize the direct beam radiation
component of sunlight. CPC - which is an evacuated tube collector backed by a concentrator - is able to utilize both diffuse as
well as direct beam radiation.
19
Dr Uli Jakob. International experience and status on solar thermal concentrator technology for process heat applications.
December 2010
20
Specific thermal power output (kW/m2): It is defined as the thermal energy output rate per unit collector area over its operating
time.
11
Table 5: International experience base of CSH applications

End-use
Sector
Country
Cooling
Hospital
Ipswich, Australia
Thane, Maharashtra
Harnosand, Sweden
Morocco
Gurgaon, India
Chennai, India
Bergamo, Italy
Long Island, USA
Germany
Doha, Qatar
Dalaman, Turkey
Jordan
Newcastle, Australia
Antalya, Turkey
Abu Dhabi (Masdar), UAE
Abu Dhabi, UAE
Rosenfeld, Germany
Seville, Spain
Newcastle, Australia
Gebze, Turkey
Grombalia, Tunisia
More than 50 installations in
India
India
Burkina Faso
Argentinean Altiplano,
Argentina
Latur and Sangli, India
Marrakech, Morocco
Chakan, India
Ankara, Turkey
Germany
Long Island, USA
Fritolay, Turkey
India
Dalaman, Turkey
Kota, India
Industry
Stadium
Hotel
Shopping Mall
Supermarket
Office Building
University/Technology Institute
Food production
Steam Cooking
Baking of bread
Winery
Institutions: hostels, religious,
hotels, etc.
Bakery
Hot water/ steam
Dairy (pasteurization)
Auto industry (7-tank process)
Ball-Bearing Factory
Metal Factory
Piano Factory
Beverage Factory
Laundry
Evaporation
Nuclear Facility
28.
A detailed report was prepared during project preparation phase; however an executive
summary of CSH systems is presented in Annex E. A summary of one of the case studies is
presented in Box 1 for reference. Table 6 provides a summary of the four case-studies main features.
Table 6: Summary of International CSH Case Studies
Industry/
Institution
Location
Case Study 1
Piano Factory
Case Study 2
Winery
Case Study 3
Hotel
Case Study 4
Ipswich Hospital
New York, USA
Grombalia,
Tunisia
Dalaman, Turkey
Queensland,
Australia
12
End-use
application
Year
of
installation
Working Fluid
Type
of
Collector
Aperture Area
Collector
mounting
Thermal Energy
output
Case Study 1
Process heating
and cooling
2010
Case Study 2
Process cooling
Pressurized
hot
o
water @ 200 C
Pressurized
hot
o
water @ 200 C
and
16
bar
pressure
Linear Fresnel
Parabolic Trough
532 m
Roof
430 MWh/annum
(predicted)
2008
Case Study 3
Laundry
and
space cooling
2003
Case Study 4
Space cooling
Pressurized
hot
o
water @ 180 C
Hot oil @ 175 C
Parabolic Trough
Parabolic Trough
2008
o
574 m
Roof
th
Designed to
produce 30% of
the hospitals
peak energy
requirement for
cooling.
360 MWh/annum
(predicted)
88 m
Ground
360 m
Ground
No data available
On 24 May 2007
the energy from
parabolic trough
collectors
was
approximately 590
kWh/day and met
46% of that days
cooling demand
Box 1. Solar Cooling in a Hospital, Australia

Ipswich Hospital in Queensland, Australia has installed 43 parabolic trough collectors to provide
thermal energy to a double effect VAM (Vapour Absorption Machine) for providing cooling in the
2
Hospital in 2008. The total aperture area of the collectors is around 574 m . The installation was done
in collaboration between Queensland Health, Energy Impact, Energy Conservation Solutions and
ENERGEX Ltd. The collectors are installed at the roof space of the hospitals multi storey car park.
Auxiliary heating is provided through gas fired steam boiler. The solar collector field has a 255 kW
capacity and is expected to produce around 360 MWh/annum. The total cost of the solar cooling
2
system was 692,000 EUR and specific cost of 1,206 EUR/m of collector aperture area. Ipswich is
located on the urban outskirts of Brisbane, the capital of Queensland. Cooling is a major energy load
in Australia, and there is great interest in solar cooling, including as there are many remote aboriginal
and mining communities that are not (and never will be) connected to the main electricity grids.
Figure 4. Ipswich hospital solar collector field (Source: ENERGEX Ltd)
13
Baseline
29.
The main industries/sectors requiring process heat which have an appreciable potential for
21
CSH applications in India are listed in Table 7. Steam is the most widely used working fluid for
o
providing industrial heat at up to 250 C. Apart from steam, the other working fluids employed are
pressurized hot water, hot oil and hot air. The process heat using sectors are divided into two broad
categories (a) those having medium to large steam requirements (steam requirement of > 5 tons/hour)
(b) those having small steam requirements (steam requirement of < 5 tons/hour). The industries
having medium to large steam requirements are characterized by the use of less expensive solid fuels
(in particular coal) which results in a longer pay-back period for CSH systems; also the size and
investment in a typical CSH installation would be large to meet such a substantial steam demand.
Most of the existing CSH installations in India are in industries and for applications having small steam
requirements and using higher cost fuels (in particular furnace oil). Discussions with the CSH industry
during the CSH projects design phase have strongly suggested that in the foreseeable future the
most promising applications for CSH will also be in sectors with small steam needs and using higher
cost fossil fuels, in particular furnace oil. For these reasons, such industries and applications were
studied during the energy audits undertaken during this CSH projects preparation phase.
Table 7: Classification of thermal energy using industries
Remarks for solar concentration
applications
Medium and large steam users ( > 5 tons/h steam requirement)
1. Textile (composite mills, grey Coal
- Longer pay-back periods as in most
Lignite
cloth mills, mills engaged in
cases cheaper solid fuels (coal, lignite,
Furnace oil
finishing operations)
biomass) are used.
Natural gas
2. Pulp and paper (composite
- Large steam requirements and in several
Biomass
paper mills)
cases e.g. pulp and paper, fertilizer and
3. Fertilizer and petro-chemical
petro-chemical, high pressure (> 40 bar;
4. Chemical (dye and
250oC) steam is required.
pigments; organic chemicals;
- High initial investment and large area
rubber processing )
required for CSH collector field to supply
5. Pharmaceutical (bulk drugs)
a significant part of the steam demand.
- No existing CSH demonstration
applications to date
Small steam users ( < 5 tons/h steam requirement)
Predominantly
6. Textile (garments, yarn)
- Pay-back periods are shorter as costlier
Petroleum fuels
7. Paper (recycled paper mills)
petroleum fuels generally used.
8. Chemical (paints and resins)
- The steam requirement is generally small
9. Pharmaceuticals (active
and at low pressures (< 10 bar)
pharmaceutical ingredients
- Smaller initial investment and area of the
and formulations)
CSH collector field for supplying a
10. Food processing (fruit
significant part of the steam demand.
preservation, bread making,
- CSH systems already demonstrated in
drying of plantation products)
India for food processing, hotels,
11. Hotels
institutional cooking, dairy, metal
12. Hospitals
treatment, evaporation and space
13. Institutional cooking (hostels,
cooling applications.
armed forces, religious
institutions, catering, etc.)
14. Dairy processing
15. Laundry
16. Metal treatment (galvanizing,
anodizing, and painting)
17. Space cooling using vapour
Industry/ Application
Fuel used
21
Steam, hot water, hot air, and hot mineral oil are examples of working fluids. A working fluid is commonly generated centrally
and then distributed to various points of use in an industrial or commercial site.
14
absorption cycle
30.
The energy audits conducted during the course of the CSH project preparatory phase
covered several potential CSH application target markets. Detailed information of the results of these
energy audits is attached as Annex F. A summary of the energy audit results is shown in Table 8.
Analysis of the energy audit results shows that availability of adequate space for the CSH collectors
can be a major limiting factor while planning a CSH system. In several cases, the free area available
in the applicable industries is small and hence only a fraction of the thermal energy demand can be
met through CSH technologies. In only 3 out of the 11 industries/facilities surveyed would it be
possible to meet a high fraction (45-100%) of the annual thermal energy demand. In two
industries/facilities a medium fraction (15 - 45%) of the demand could be met by CSH systems. In the
remaining six industries/facilities only a small fraction (<15%) could be met by CSH system mainly due
to inadequate free space for the installation of CSH collectors. Sectors such as hotels/hospitals are
limited by space available for the CSH installations. Other sectors have peak heat demand periods
which fall out of the operating hours when the CSH systems are at their peak. In order to popularize
and infuse the technology into the market, other sectors needs to be explored that have process heat
requirements in the medium temperature range. The results also indicate that there may be many
more promising candidate industries for the application of CSH than originally envisaged in the early
CSH project development stages. At this nascent stage of technology development status of CSH
technologies and systems, the project should aim at supporting CSH applications in the widest
possible range of industries. Restricting this CSH project to only certain industries (as previously
envisaged during the PIF preparation stage) is now seen as unnecessarily restricting the scope of the
project at a stage when the best applications for CSH mass market takeoff in India are not yet fully
clear.
Table 8: Summary of Energy Audits
Sector/Industry
Small dairy farm, Mumbai
(Maharashtra)
Metal treatment, Chennai
(Tamil Nadu)
Pharmaceutical Industry,
Vadodara (Gujarat)
Hospital, Belgaum
(Karnataka)
Chemical (Paint and
Resins), Bawal (Haryana)
Salt making, Tuticorin (Tamil
Nadu)
Metal treatment, Mumbai
(Maharashtra)
Spice drying, Palghar
(Maharashtra)
Pharmaceutical Industry,
Ambernath (Maharashtra)
Hospital, Mumbai
(Maharashtra)
Edible oil, Adilabad (Andhra
Pradesh)
Typical thermal
energy demand
(kcal/hour)
Area available for

installation of CSH
2
collectors (m )
Estimated % of
annual thermal
energy demand
that could be met
through CSH
40,000
1,000
100
200,000
5,400
50
250,000
1,500
46
500,000
1,000
22
450,000
1,500
16
2,000,000
2,000
13
500,000
1,000
11
350,000
450
1,200,000
1,000
250,000
120
<1
4,000,000
600
<1
31.
The MNRE of the Government of India (GOI) is currently supporting CSH installations for
process applications in India with a subsidy scheme that is based on collector area. The 71 systems
2
which are commissioned or under installation totals to about 20,000 m (refer Table G-1 in Annex G;
15
list of the installations provided). The case studies of four installations are provided in Annex F. The
distribution of these systems in terms of applications, technology and size is given in Table 9 below.
To date, the predominant application of CSH in India has been for steam cooking and the predominant
CSH technology in India is Scheffler.
Table 9: Distribution of CSH systems in India (technology, system size and applications)
71
Total number of systems

Applications
52
Cooking systems
Solar cooling
Other applications (food processing, evaporation,
hotel, hospital, institutional cooking, dairy, metal
treatment )
5
13
CSH collector size distribution

2
Maximum size of the system
2,502 m
Minimum size of the system
54 m
Number of systems having size > 1000 m

Number of systems having size < 200 m
41
2
Number of systems having size 200 to 1000 m

Average size of the system
22
2
298 m
Type of CSH collectors

Parabolic dish with fixed focus (Scheffler)
18,500 m
Parabolic dish with moving focus (ARUN)
1,500 m
22
32.
A recent technical paper has estimated 2-5 years simple payback for Scheffler and 4-8
23
this is after
years payback period for ARUN CSH systems at furnace oil prices of INR 36/litre
including the relevant government subsidies and accelerated depreciation benefits. Annual fuel
savings are a function of CSH system characteristics, solar energy availability and the cost of the fuel
saved. The calculations have been done for specific system characteristics based on performance
claims of the manufacturers, a range of furnace oil prices and considering different values of annual
sunshine hours. In the absence of the necessary measured performance data of existing CSH
installations, unfortunately a full financial analysis of the existing CSH systems in India is not yet
possible.
33.
Figure 5 shows the direct normal solar resource on the map of India. Except for CPC, all
the other CSH technologies can only utilise the direct normal solar radiation component. The map
shows that western, southern and central India have a higher direct normal radiation compared to
north, east and north-eastern states. The map also shows that the 5 states having the most CSH
systems in India are Gujarat, Maharashtra, Andhra Pradesh, Tamil Nadu and Karnataka - all of them
belonging to the higher Direct Normal solar resource regions of India.
22
V R Sardeshpande and I R Pillai . Solar concentrador for Industrial Thermal Applications Indian Scenario, Proceedings of
the Second IASTED International Conference Solar Energy (SOE 2010), July 15-17, 2010, Banff, Alberta, CANADA
23
Furnace oil prices corresponding to a crude price of around US$ 100-120/ barrel
16
Gujarat (3,598)
Maharashtra (6,961)
Andhra Pradesh (1,592)
Karnataka (3,666)
Tamil Nadu (2,344)
Figure 5: Five leading states in CSH Installations (m of collector area)

[Map source: NREL. Indian Renewable Energy Status Report, October 2010]
17
24
34.
The MNRE subsidy scheme appears to be generally accessible, simple enough to
understand, and sustainable into the foreseeable future. It has been a very useful support mechanism
in most of the 71 installations to date in India. However, in its present form the MNRE subsidy scheme
does not sufficiently differentiate between the different available CSH technologies on the basis of
their performance, and hence the MNRE subsidy scheme in practice serves to promote the extension
of the simplest and lowest cost existing CSH technologies currently available in India (in particular
Scheffler) even in applications where other technologies (e.g. Arun or international CSH technologies
not yet deployed in India) may be more appropriate.
35.
The current MNRE CSH support programme is also not focused on providing support for
the development of standard CSH technology application information packages, testing and
standardisation, capacity building and focused CSH market creation. The absence of any systematic
monitoring of in-use process oriented CSH applications means that the performance of existing CSH
applications is not quantified and hence the necessary technical learning from the operation of the
existing CSH applications in India is limited to date. In the absence of such properly monitored real
field CSH performance data, the credibility of the actual performance of the existing CSH technologies
in real applications in India is low, and this is a key barrier to the increased uptake of CSH in India.
There is also a shortage of site-specific applicable direct beam solar radiation data. As the
performance of the solar concentrator systems under consideration (except for CPC which also works
under diffuse radiation) depends on the available direct solar radiation, the absence of direct beam
solar radiation data hinders the realistic estimation of CSH applications performance in India.
36.
The potential end users of the CSH industry in India are not exposed to the latest
international CSH technology developments, which are primarily occurring in IEA/OECD countries.
Equally, the existence and scale of existing and future Indian commercial CSH applications remains
essentially unknown to global CSH technology developers in Europe and other IEA/OECD countries,
thereby limiting the growth of CSH markets outside India.
37.
There are 10 existing CSH manufacturers in India that are known to MNRE (Annex I,
Table I-1). One manufacturer is involved in the making of ARUN parabolic dish with moving focus and
2- axis tracking, the rest are manufacturers of the simpler Scheffler CSH systems. A further eight
prospective potential CSH suppliers were identified during the CSH projects design stage (Annex I,
Table I-2). The prospective CSH suppliers products were either indigenous CSH technologies that are
still under development or internationally sourced CSH technologies. However, most of the existing
and new CSH suppliers are small or medium sized companies and therefore they have only limited
financial and technical capacity to develop their indigenous technologies or to access new
technologies available internationally.
38.
In India, out of the five solar concentrator technologies, only two i.e. parabolic dish with
fixed focus (Scheffler) and parabolic dish with moving focus (ARUN) have been used for thermal
applications to date. Parabolic trough, linear Fresnel and CPC technologies have not yet been used
for commercial CSH applications in India. No specific work is yet underway to support the introduction
of CPC evacuated tube technologies for lower temperature process heat applications in India, where it
is a particularly promising low cost mass-market technology option. The lack of a full suite of
applicable CSH technologies in India means that there is often a mismatch between the technology
deployed and the real process application temperature requirements.
39.
A handful of Indian academic institutions (e.g. the Indian Institute of Technology - Bombay
and Indian Institute of Technology - Madras) have faculty members actively working on CSH
technologies and applications. The number of Masters and PhD level students working on CSH
technologies and applications is still limited. It is widely agreed that the existing CSH skill resource
base is inadequate to support the envisaged CSH market growth. A clearly and widely acknowledged
risk is that the high profile and official GOI supported CSP deployment plans may siphon off the
limited CSH expertise, and thus severely limit CSH market growth in India.
40.
Annual data on CSH installations, let alone their performance, has not been recorded on a
suitable sector wise basis. CSH projects approved by MNRE for financial subsidy in the year 2006-07
24
MNRE is providing a capital subsidy of INR 5,400/ m2 and INR 6,000/m2 for CSH systems with single-axis and double-axis
tracking respectively24. The capital subsidy/unit area of collector is based on the MNREs assessment of the benchmark cost of
collectors. Besides the capital subsidy, MNRE is also offering a soft loan at an attractive 5% interest rate.
18
25
only total 1,400 m , with a marginal increase to 1,732 m in 2009-10 . In the absence of specific,
integrated and multiple barrier removal actions (one of the prime objectives of this UNDP GEF MNRE
CSH project), installed capacity figures from new CSH applications are not expected to appreciably
increase in the next five years from the baseline situation. The necessary technology development
and the economies of scale required to increase awareness, underpin credibility, and reduce CSH
prices to drive Indian CSH market growth by a factor of 6-8 in the next 5 years, will only occur with the
implementation of the initiatives under this UNDP GEF MNRE CSH project.
Alternative Scenario
2
41.
Under the baseline scenario, the annual rate of installation is currently around 2,000 m
2
with a projected marginal increase of 3,000 m per year over the next five years. The cumulative area
2
of CSH installations would thus reach 35,000 m by the year 2015-16. In the alternate scenario, a
targeted CSH market development approach with specific integrated and multiple barrier removal
actions would be undertaken with GEF funded interventions and total Indian CSH installations would
2
2
go up by an additional 45,000 m - resulting in a total Indian CSH installed working area of 80,000 m
at project end. The additional CSH installed collector area gain would be from 30 demonstration
2
2
projects totalling 15,000 m with the remaining 30,000 m coming from 60 replication projects. The
2
annual rate of CSH installations in India would reach 15,000 m annually as the project nears its end which is an increase by 6 to 8 times of the current annual rate of Indian CSH new installations.
Cumulative CSH installations (m2)
90,000
80,000
Baseline scenario
70,000
Project scenario
60,000
50,000
40,000
30,000
20,000
10,000
0
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Year
Figure 6: Forecasted cumulative installation of CSH collector areas in business-as-usual (BAU)

2
scenario and project scenario (in m of collector area)
2
Table 10: Year-wise projected CSH installations in m of collector area (2011-12 to 2015-16)
Year
2011-12
25
BAU (m )
Demonstration
2
projects (m )
3,000
Replication
2
projects (m )
3,000
Total (m )
6,000
Annual
emission
reductions
*
(tCO2/year)
1,050
MNRE Annual Report 2006-07 and 2009-10
19
Year
BAU (m )
Demonstration
2
projects (m )
Replication
2
projects (m )
2012-13
3,000
3,000
4,000
2013-14
3,000
6,000
5,000
2014-15
3,000
6,000
6,000
2015-16
3,000
0
12,000
Total
15,000
18,000
27,000
*
2
Annual emission reductions = year wise installations * 0.35 tCO2/m /year
3.
Total (m )
10,000
14,000
15,000
15,000
60,000
Annual
emission
reductions
*
(tCO2/year)
2,450
5,250
8,400
15,750
32,900
BARRIER ANALYSIS
2
42.
The Eleventh FYP proposed an aspirational target for the installation of 250,000 m of
CSH systems to occur during the 2007-12 period. However, the actual achievement of CSH
2
th
installation was only 15,000 m during first the 3.5 years of the 11 five year plan. This clearly shows
that there are a number of major additional barriers to the dissemination of the CSH technology in
India that are not being fully addressed by existing MNRE baseline CSH support activities. The key
additional CSH barriers that this UNDP GEF MNRE CSH project will address are presented in Table
11.
Table 11: Barrier Analysis
Barrier
Description
(1)
Technology package barriers
Only two examples of CSH technologies (ARUN and
The full set of concentrated
Scheffler) - out of the five applicable broad CSH technology
solar technologies developed
types developed worldwide to date - are currently deployed
and available worldwide for
in India under real field conditions. In particular, Linear
process heat (CSH)
Fresnel Reflector (LFR), Parabolic Trough Concentrator
applications are yet to be
(PTC) and Compound Parabolic Concentrator (CPC)
demonstrated in India
technologies are yet to be deployed and operated in the
commercial and industrial sector in India. The different CSH
technologies offer a mix of specific features in terms of
thermal output and hours of heat production, collector area
required, weight of the system, heating fluid temperature
range produced, etc. It is imperative that the entire set of
CSH technologies are made available and deployed in India
as a pre-requisite for developing the necessary full widerange of CSH technology application packages.
To date, CSH applications in India have been primarily
Non-availability of a full range
of CSH technology application focused on the use of the Scheffler CSH technology for
institutional cooking. There are more than 50 such
packages in India
installations from several CSH suppliers, successfully
establishing the applicability of Scheffler based CSH
technology for this sector in India. Some further Indian CSH
applications have already been demonstrated in the
cooling, dairy pasteurisation, laundry, automotive, and
heavy water production sectors. Standard technology
application packages covering an integrated combination of
process integration, CSH technology, heat storage and
other key success factors are lacking for these and other
promising applications to systematically capture the results
and lessons learned from these early demonstration
projects and extend this to additional promising CSH
application sectors in India.
Non-availability of performance In the absence of standardised performance measurement
measurement standards and
standards and protocols, it is very difficult to measure the
20
protocols for measuring CSH

systems performance
Non-availability of testing
facilities for CSH technologies
performance of existing CSH systems or to compare CSH

performance across different technologies and applications.
India does not have specialized testing centres, at the
national and regional level, for the testing of CSH
technologies. Independently verified performance
characteristics of CSH technologies are not available.
(2)
Awareness and capacity barriers
A large number of industries in India currently use
Lack of awareness amongst
expensive petroleum fuels or electricity for low and medium
industry (including top level
management levels) and policy temperature heating needs. There is a lack of awareness
amongst industry and policy makers of the strategic
makers on the potential of
opportunity that CSH offers in reducing their energy costs
CSH applications to reduce
and in supplementing petroleum fuels to reduce Indias
process heat supply costs
growing dependence on imported fuels.
Limited capacity of the CSH
There are only a limited number of CSH installers - with
technology supply chain
generally limited capacity - in India. This lack of capacity
leads to frequent delays in the installation and
commissioning of projects on-time, and often long
commissioning and CSH project hand-over phases.
India has a large number of certified energy auditors26 who
Lack of knowledge of CSH
technologies and system
act as technical advisors to industry on energy efficiency
factors amongst technical
and energy conservation issues and options. Each industry
consultants to applicable
has its own set of process issues and its own sectorindustries and sectors
specific technical experts. There are huge knowledge gaps
amongst these technical experts and advisors regarding the
applicability and sector specific issues regarding CSH
technologies and applications and the potential of CSH to
meet process heat requirements. Strengthening the
capacities of these technical experts and advisors in CSH
technologies will assist the wider penetration of CSH in the
applicable industrial and other sectors.
Companies offering CSH systems are generally small in
Limited availability of skilled
size and currently have only limited annual CSH sales.
and semi-skilled technical
manpower in the CSH industry Such companies are simultaneously engaged in R&D,
demonstration, manufacturing, marketing, installation and
commissioning tasks. All functions calls for highly skilled
technical manpower (generally at a technical masters
degree level). The CSH companies are limited by their
financial and technical resources to train such skill sets in
large numbers of new skilled semi-skilled staff required.
Academic institutions offer only a limited number of postgraduate energy engineering courses on CSH and have
only limited funding and capacity to offer sufficient relevant
research projects, thus limiting the enhanced supply of
high-end trained CSH manpower.
Limited interface between the
With the exception of the very productive association
CSH industry and applicable
between IIT-Bombay and the manufacturers of ARUN Solar
academic institutes
in which IIT-Bombay developed the testing procedure, the
interface between the CSH industry and applicable
academic institutions is currently limited in India.
Encouraging and facilitating such industry-academic
interactions will benefit both the CSH industry in
undertaking its R&D and in training the necessary high-level
manpower with suitable skills in the niche CSH technology
and its applications.
Limited interface/interaction
India currently has the largest number of CSH installations
between international CSH
world-wide, and has a huge market potential to expand this
industry/experts and Indian
further and continue to lead the world with actual working
26
The certification is given by BEE, by conducting a process of examinations.
21
CSH industry/experts
CSH installations. Indian industry now has world-leading

experience in the use of some CSH technologies and
applications, in particular for institutional cooking. Global
technology developers have products and expertise in other
CSH technologies of interest such as LFR, PTC and CPC
that have not yet been used in India, as well as in new CSH
applications, in particular solar cooling. Increasing the
interface/interaction between the Indian and international
CSH industries and experts would greatly accelerate the
overall development both Indian and global - of the CSH
industry.
(3)
Demonstration and replication barriers
Every CSH industry/ application has a unique set of
A wide range of CSH
process requirements, process integration, heat storage
technology application
and balance of systems equipment, and other practical
packages are yet to be
issues. In India, CSH systems have already been
demonstrated in India
successfully demonstrated for institutional cooking, dairy
pasteurisation, food processing, evaporation, laundry,
institutional cooking, metal treatment and space cooling
applications. However, there are still a large number of
other sectors such as textiles, chemicals, pharmaceutical,
recycled paper, and so forth where CSH systems can be
integrated in industrial process heat applications but
where CSH systems are yet to be demonstrated. Existing
applications where CSH has been demonstrated also have
significant potential for further improvements. Finally, a
number of key globally proven CSH technologies have not
yet been tested for commercial/industrial process heat
applications in India
No public domain
There are around 71 existing CSH projects in India. There
documentation available for
is not yet any comprehensive assessment of these CSH
existing CSH applications
projects performance, problems encountered, lessons
learned, and the factors that led to their success or
otherwise. Documentation of the current CSH systems
performance, issues, and lessons learnt would be of great
value in efforts to sustain and widely replicate such
systems.
(4)
Financial barriers
Low payback on CSH
CSH stakeholder consultations revealed that users want
investments
simple paybacks of 2 to 4 years. A recent technical paper
has estimated 2-5 years simple payback is possible for
Scheffler and 4-8 years payback period for ARUN CSH
systems at furnace oil prices of INR 36/litre27 after
considering current government subsidies and accelerated
28
depreciation benefits in India . Low payback on
investments is a key barrier in CSH technology deployment.
Lack of incentives based on
MNREs subsidies for CSH are based on the area of
CSH performance
installed CSH collectors and not on the actual quantity of
process heat produced. The actual process temperature
requirements, and any need for heat storage are also not
taken into consideration in the current MNRE subsidies
provided. As the current MNRE subsidy is based on CSH
collector area, it favours low-cost and low-efficiency CSH
technologies which require large collector areas. The
existing MNRE subsidy does not take into consideration of
key real-world CSH application aspects such as the CSH
27
Furnace oil price corresponding to the crude price of around US$ 100-120/ barrel
V R Sardeshpande and I R Pillai. Solar concentrators for Industrial Thermal Application Indian Scenario, Proceedings of the
Second IASTED International Conference Solar Energy (SOE 2010), July 15-17, 2010, Banff, Alberta, CANADA
28
22
systems integration with actual process requirements, the

adoption of allied highly cost effective energy efficiency
opportunities, or the need for short, medium or longer term
heat storage.
4.
KEY STAKEHOLDERS
43.
A large number of stakeholders from Government, industry, national and international
research and academic institutions, international organizations and financial institutions need to work
closely and seamlessly together for the successful development of the CSH market in India. A brief
description and proposed role of key stakeholders is presented in Table 12.
Table 12: Key stakeholders involved in CSH
Stakeholder
Government
Ministry of New and Renewable
Energy (MNRE)
Solar Energy Centre (SEC)
Bureau of Indian Standards (BIS)
Central Boilers Board (CBB),

Department of Industrial Policy
and Promotion
Bureau of Energy Efficiency

(BEE)
Department of Science and

Technology (DST)
Role
29
MNRE is responsible for framing policy and implementing

programmes for development and promotion of new and renewable
energy sources in India. MNRE serves as the main client
(Implementing Partner/Executing Partner) in this project. MNRE will
provide the strategic steering for the project, oversee the
accomplishment of project objectives and tasks, lead co-funding
requirements, initiate policy action on its own and through other
departments, and facilitate the process of bringing other
stakeholders on board.
SEC, established in 1982, is a dedicated unit of MNRE with a focus
on the development of solar energy technologies and to promote
solar applications through product development. SEC is also
already involved in testing of solar PV and solar thermal products.
In the project it is proposed that SEC will coordinate the output
1.3.1 (Development of CSH system components and equipment
testing facilities)
BIS, the National Standards Body of India is the lead Indian agency
concerning standardization, certification and quality. The project
will initiate/provide inputs in the process of formulation of
appropriate BIS standards concerning solar concentrator
technologies (Activity 1.2.1.4).
CBB, constituted under Section 27A of the Indian Boilers Act 1923,
is responsible for establishing regulations for boiler materials,
design, construction, as well as for registration and inspection. As
steam generating CSH falls under the purview of the Indian Boilers
Regulation, the project will liaise with CBB to expedite approvals for
new solar concentrator applications and technologies used for
steam generation.
BEE is the statutory government body (under the Ministry of
Power) for the implementation of the Energy Conservation Act.
BEE also has the mandate to implement national programmes on
energy efficiency and conservation in industries and buildings -- the
two sectors of application of CSH technologies. BEE will be invited
to join the CSH project advisory committee.
DST is supporting the Solar Energy Research Initiative (SERI) in
India. SERI supports research, development and demonstration of
solar technologies. CSH technologies and applications are one of
29
This column describes the role of the stakeholder in the implementation of the CSH, or the role of the stakeholder in the
implementation of the proposed project.
23
Stakeholder
Ministry of Environment and

Forests (MoEF)
State Nodal Agencies (SNAs)
Petroleum Conservation
Research Association (PCRA)
National Productivity Council
Role
29
the identified areas of SERI work. DST will be invited to join the
CSH Project Advisory Committee.
MoEF is the GEF focal point for GEF projects in India and thus will
liaise with GEF and provide overall coordination of the project.
The SNAs are the state level agencies for promotion of renewable
energy and will have a role in the MNRE subsidy disbursement
component for the CSH projects 30 demonstration and 60
replication projects.
PCRA works on behalf of the Ministry of Petroleum and Natural
Gas on the conservation of petroleum products leading to
environment protection, energy security and sustainable
development. As most of the CSH applications would be to
substitute for existing petroleum products use, PCRA will be
invited to join the CSH Project Advisory Committee.
It is an autonomous, non-profit, national level organization to
promote an enhanced productivity culture in India. National
Productivity Council was established as a registered society in
1958 by the Government of India. It provides training, consultancy
and undertakes research in the area of productivity. National
Productivity Council would be a potential candidate for being one of
the component managers for the CSH projects component 3
(Planning and operationalising demonstration projects).
Industry / Associations
Confederation of Indian
Industries Sohrabji Godrej
Green Business Centre (CIIGodrej GBC)
The Confederation of Indian Industry (CII) is a non-government,

not-for-profit, industry led and industry managed premier business
association, with a direct membership of over 7,800 organisations
from the private as well as public sectors. CII - Sohrabji Godrej
Green Business Centre (CII - Godrej GBC), is a division of CII and
is India's premier developmental institution, offering advisory
services to industry on environmental aspects. CII - Godrej GBC
works in the areas of Green Buildings, Energy Efficiency, Water
Management, Environment Management, Renewable Energy,
Green Business Incubation and Climate Change activities. CII Godrej GBC would be a potential candidate for being one of the
component managers for the component 3 (Planning and
operationalising demonstration projects).
Solar concentrator manufacturers As per MNRE, currently there are 10 solar concentrator
manufacturers involved in producing CSH systems in India. Several
others are planning to enter the CSH market. Solar concentrator
manufacturers responsible for the supply of CSH systems would be
important stakeholders in the entire CSH project.
Research and Educational Institutes
Indian Institute of Technology
IIT Bombay and IIT Madras are already involved in research,
(IIT), Bombay, Madras and Delhi
training and technology development work related with solar
concentrator technologies and CSH applications. The Center for
Energy Studies, IIT Delhi is involved in research and training on
solar concentrators. The Department of Energy Science and
Engineering at IIT Bombay has contributed in the development of
the ARUN CSH technology and is also undertaking projects funded
by MNRE to develop performance standards for solar
concentrators and in setting up a 1 MW CSP plant and testing
facility.
Non Ferrous Technology
NFTDC is the only R &D institute of its kind in the country that
Development Centre (NFTDC)
undertakes sponsored R & D projects involving both the scientific
know-why as well as technical know-how, thus forming the
continuous Research and Development linkage from concept to
eventual transfer for commercial production. NFTDC has the
capabilities to develop specialty alloys and materials, components,
process know-how and optimization, material testing and
24
Stakeholder
Central Power Research Institute

(CPRI)
The Energy and Resources

Institute (TERI)
TERI University
International Organizations
US Agency for International
Development (USAID)
Deutsche Gesellschaft fr
Internationale Zusammenarbeit
(GIZ, formerly GTZ)
Role
29
characterization, technical consultancy services and complete

technology development packages on a turnkey basis. NFTDC
could play the main role and/or coordinate the development of the
10 technology application information packages (Activity 1.1.1.4)
CPRI is an autonomous organisation under the Ministry of Power,
Government of India that was established in 1960. CPRI functions
as a centre for applied research in electrical power engineering
assisting the electrical industry in product development,
consultancy and quality assurance. CPRI in the past has been
involved in the testing of renewable energy products e.g. biomass
cook stoves and would be a potential candidate for taking up the
role of the regional testing facility (Activity 1.3.1.3)
TERI is a non-profit research organisation based in New Delhi.
TERIs activities in renewable energy and energy efficiency in
industry and buildings could be of relevance for the project. TERI
could be a potential candidate for being one of the component
managers for the CSH projects component 3 (Planning and
operationalising demonstration projects).
TERI University is based in New Delhi. The Centre for Energy and
Environment of the University focus is to produce specially trained
manpower for the highly multidisciplinary area of renewable energy
utilization, including solar thermal systems TERI University could
be a potential institution for taking up the components relating to
capacity building especially to create skilled human resources in
the subject of CSH and its integration.
In the area of clean energy, USAID is working in India to increase
the viability and efficiency in the power sector, conserve resources,
and promote clean coal technologies and renewable energy.
USAID could potentially be a member of the Project Advisory
Committee.
GIZ is in the process of initiating a project entitled
Commercialisation of Solar Energy in Urban and Industrial Areas
(ComSolar) in India with the financial support from the German
Federal Ministry for Environment, Nature Conservation and Nuclear
Safety (BMU). This ComSolar project is under the bilateral
international cooperation between BMU and the MNRE, India, to
focus on solar energy applications in various urban and industrial
areas of the country. GIZ could potentially be a member of the
Project Advisory Committee.
Financial Institutions
Indian Renewable Energy
Development Agency (IREDA)
IREDA is a Public Limited Government Company established in

1987, under the administrative control of the MNRE. IREDAs role
is to promote, develop and extend financial assistance for
renewable energy and energy efficiency/conservation projects in
India. IREDA is currently operating the solar off-grid programme
under the JNNSM. IREDA will be a member of the Project Advisory
Committee.
National Bank for Agriculture and NABARD is run by the central government of India, and has
Development (NABARD)
launched a capital subsidy-cum-refinance scheme for installation of
solar off-grid (photovoltaic and thermal) applications under the
JNNSM programme. NABARD could have a role in the
disbursement of subsidies and the provision of credit to
demonstration and replication units under the CSH projects
component 3.
International Research Institutes involved in research and testing of solar concentrators
The Fraunhofer Institute for Solar Fraunhofer ISE is involved in research and testing of solar
Energy Systems (Fraunhofer
concentrators. The Institute could be a potential international
ISE), Freiburg, Germany
technical resource for technical training and providing technical
25
Stakeholder
Institut fr Thermodynamik und
Wrmetechnik (ITW), University
of Stuttgart, Germany
German Aerospace Centre
(DLR), Cologne, Germany
Le Centre Scientifique et
Technique du Btiment (CSTB),
France
Solar Institute Julich, Germany
Role
29
assistance in the establishment of CSH testing facilities in India.

ITW is involved in research and testing of solar concentrators, and
could be an international technical resource for technical training
and providing technical assistance in the establishment of CSH
testing facilities in India.
DLR is involved in research and testing of solar concentrators and
could be a potential international technical resource for technical
training and providing technical assistance in the establishment of
CSH testing facilities in India.
CSTB is involved in research and testing of solar concentrators and
could be a potential international technical resource for technical
training and providing technical assistance in establishment of CSH
testing facilities in India.
One of the focus areas of this institute are development of low and
high temperature solar thermal collectors and absorbers for solar
thermal power plants. In relation to these, the institute also
developed components for sea water desalination, designed
thermal storage and various other solutions to the modern solar
architecture. This institute develops simulation programs for energy
systems and thermodynamic evaluation of system components.
Solar Institute Julich may be a potential partner to devise
curriculum for training programmes and capacity building on
testing, performance monitoring, etc. under the UNDP GEF MNRE
CSH project.
26
PART B. PROJECT STRATEGY

5.
PROJECT RATIONALE, DESIGN PRINCIPLES AND STRATEGIC

CONSIDERATIONS
Project Rationale and Design Principles

44.
This UNDP GEF MNRE CSH project has been designed as a fully integrated and suitably
funded and co-funded series of components and activities to remove the multiple barriers facing the
widespread adoption of CSH technologies and applications in India. The project has been designed to
fully support and compatible with the on-going MNRE CSH support programme.
45.
This proposed CSH project will remove the key barriers (identified as above in section 3)
to enable the annual collector area of new CSH applications in India to be increased 6-8 times in the
five-year project duration. The overarching rationale for the project is to position the Indian CSH
industry for further on-going sustained growth after the formal end of this UNDP GEF MNRE CSH
project. More specifically, the proposed project will:
(1) Address technology package barriers by supporting the development of 10 technology
information packages for commercial CSH deployment in selected specific sectors. The
technology information packages will each refer to one or more of the five applicable CSH
technologies that matches the required process temperature, available CSH area for
deployment, and other specific CSH and process attributes. These technology information
packages will include: descriptions of the applicable process heat requirements in the
relevant sector; related process integration and energy efficiency considerations that
should be considered alongside the CSH technologies; any heat storage requirements
and applicable heat storage technologies; estimated CSH costs and performance; the
results of previous CSH applications in the applicable sector (if any) in India or
internationally; and any lessons learned to date.
(2) Address awareness and capacity building barriers to the increased uptake of CSH in India
by improving the awareness of CSH technologies and applications amongst key
stakeholders, as well as increasing the capacity of all those involved in the CSH supply
chain in India. These awareness and capacity building activities will include: increasing
the capacity and awareness of CSH amongst current and prospective system
manufacturers, vendors, energy auditors and advisors and other relevant professionals;
increasing the knowledge base of relevant CSH success factors and key issues amongst
academics, policy makers, and other CSH industry key stakeholders; undertaking
promotional campaigns for CSH; promoting enhanced academic-industry partnerships;
obtaining high-level management commitment to trialling CSH applications in relevant
sectors; and documenting and disseminating best practices and lessons learnt. This will
then ensure the wider on-going post project-end replication of CSH applications in India.
(3) Identify, implement and document the results from 30 demonstration projects to illustrate
CSH technology applications in specific and real commercial field applications in India. In
addition, 60 CSH replication projects will be supported during the project implementation.
The replication projects results will be also monitored (albeit at a lower level of detail than
for the formal demonstration projects). The results and lessons learned from the
demonstration and replication projects will be incorporated in updated technology
information packages and other materials during the latter stages of this UNDP GEF
MNRE CSH project. The technology information packages will provide the technical basis
for the 6-8 fold increase in annual CSH market installations that will be achieved by the
end of this project.
(4) Identify and remove financial barriers to the increase of the solar collector area of annual
CSH installations in India by a factor of 6-8 during the UNDP GEF MNRE CSH project
implementation. This will involve: documenting the actual financial and payback
performance of CSH installations in India; the development and support of an updated
performance based MNRE CSH subsidy scheme; and the support of additional CSH
financing mechanisms and capacity building of relevant financial institutions.
27
Strategic Considerations and Consistency with UNDP Programme

46. The overall strategy for the project is to create an enabling environment for the wider market
development of CSH sector in India. The project activities will greatly assist the Government of India in
the implementation of the Jawaharlal Nehru National Solar Mission.
47. The UNDP Country Programme (2008-2012) mentions that UNDP will support all levels of
government to implement environmental and energy policies by strengthening policy, legislative and
regulatory mechanisms promoting low carbon development, standards and codes and more efficient
use of natural resources. Capacities to integrate environmental management practices in planning
processes will be developed at state and district levels. UNDP will also support national capacity
development for the implementation of multilateral environmental agreements.
48. The UNDP Country Programme Action Plan (2008 -2012) refers to the UNDAF Outcome 4 that
deals with supporting the Indian governments efforts towards meeting its commitments under
multilateral environmental agreements through a two pronged approach involving leveraging of
additional environmental finance and also supporting activities on the ground that seek to safeguard
environmental resources. To that effect, a special focus will be placed on energy efficiency in order to
contribute to reduction of GHG emissions in energy intensive industries, transport and commercial
sectors, where population and economic growth have resulted in rapidly increasing energy demand.
The program will also identify and facilitate access to clean energy (and will pilot renewable energy
technologies) to reduce greenhouse gas emissions and local pollutants.
6.
POLICY CONFORMITY AND COUNTRY OWNERSHIP
Policy Conformity
49. The UNDP GEF MNRE CSH project fully conforms to the Strategic Programme (SP-3)
Promoting Market Approaches for Renewable Energy under the Climate Change focal area strategy of
GEF-4.
Country Eligibility
50.
India ratified the United Nations Framework Convention on Climate Change (UNFCCC) on
1 November 1993. India has completed and submitted its First National Communication and is
currently preparing its Second National Communication.
7.
PROJECT OBJECTIVES, OUTCOMES AND OUTPUTS
Project Goal and Objective

51.
The project goal is the reduction of GHG emissions from low and medium temperature
process heat applications in India through the use of CSH systems. The project objective is increased
use and promotion of CSH systems for low and medium temperature process heat applications. This
will be achieved by the integrated removal of the key barriers that prevent the wider adoption of CSH
technologies in India. The projects emission reduction estimates are quantified in Annex D.
Project components, outcomes, outputs and activities
52.
The major components and expected outcomes of the project are:
Component 1: Technical capacity development
28
Outcome 1.1: Enhanced understanding of CSH technologies, applications and

markets
Outcome 1.2: Adoption of standards and specifications for guidance of manufacturers
and users for assurance of CSH quality, safety, and performance
Outcome 1.3: Adequately capable and operational testing laboratories for verification
of manufacturer claims and guidance of CSH users to enable informed decisions
Component 2: Awareness enhancement and capacity building
Outcome 2.1: Strengthened technical capacity and awareness of stakeholders of CSH
systems for industrial/ institutional process heat applications
Outcome 2.2: CSH project deliverables facilitated and/or influenced the widespread
replication of CSH technology applications in India
Component 3: Pilot demonstration of CSH technologies for various applications
Outcome 3.1: Increased number of commercial and near-commercial CSH
technologies for diversity of applications.
Outcome 3.2: Improved technical and economic performance of commercial and
near-commercial CSH technologies in an increased diversity of applications
Component 4 Sustainable financial approach in the adoption of CSH technologies and
Outcome 4.1: Enhanced understanding of the financial viability of CSH technologies
and measures to mitigate investment risks
Outcome 4.2: Promulgation of favourable financial policies that promote increased
use and promotion of CSH for low and medium temperature process heat applications
The outcomes, outputs and activities are described below.
Outcome 1.1: Enhanced understanding of CSH technologies, applications and markets
53.
This outcome addresses the need to develop a better understanding of the five main solar
concentrator technologies, the performance of existing installations, markets for CSH in India; and
development of technology application information packages. As CSH is an emerging area, with
continuous developments taking place in the technology and its applications, it is necessary that the
preliminary knowledge gained on aspects related to technology and markets during the project
preparation phase is further enhanced through undertaking of specific studies during the project
implementation period. The existing experience of CSH applications in India has been largely limited
to only a few technology application packages, in particular institutional cooking. There is a need to
develop many more standard technology application packages, availability of which will expedite the
dissemination of CSH systems in India.
Table 13: Activities for Delivering Output 1.1.1
Output
Activities
1.1.1.1 Performance assessment of existing installations
1.1.1 Developed technology
1.1.1.2 Technology assessment of CSH technologies
application information
1.1.1.3 Market assessment for solar process heat applications
packages and
1.1.1.4 Development of technology application information
characterised
packages
technologies, applications,
and markets
54.
In the absence of performance data on existing CSH systems, the credibility of existing
CSH technologies in real applications is low, and this is a key barrier to the increased uptake of CSH
in India. The performance assessment of existing installations (Activity 1.1.1.1) will provide data on
29
actual field performance which will be required for technology assessments (Activity 1.1.1.2) as well
as for awareness programmes on CSH (Activity 2.1.5.2). Energy audits were conducted for three units
with installed CSH during PPG. This has given some useful understanding which is presented in this
document in Annex F. But it is proposed to conduct more energy audits in order to capture seasonal
performance in more number of units. The activity will start in the third quarter of Year 1 and will be of
one-year duration. The first step in the activity will be enumeration of existing installations and
selection of 15 installations from these for performance assessment. Factors such as the type and
make of CSH systems, their collector area, application, location, operational lifetime and solar
resource availability will be considered for the selection of suitable CSH installations. Available
performance monitoring data will be reviewed. A review of the design basis, review of operating
performance, and onsite testing and measurement will be the required tasks during the performance
assessment. For onsite testing and measurement, available monitoring protocols along with inputs
from the work being undertaken on developing performance monitoring protocols (Activity 1.2.1.1) will
be utilised.
55.
CSH is a developing field and hence periodic technology assessments that cover the
technical features, cost, applications, technology outlook, technology development areas/needs, etc.
for each of the solar concentrator technologies are needed. A comprehensive solar concentrator
technology assessment (Activity 1.1.1.2) covering all the five key solar concentrator technologies
(CPC, Linear Fresnel, Parabolic trough, Parabolic dish with fixed focus and Parabolic dish with moving
focus) will be carried out. There will be two assessments, one at the start of the project during Years 1
& 2 and the other towards the end of the project in Year 5. The first assessment will start in the last
quarter of Year 1 for one-year duration. The assessment will cover the technical features, cost,
applications, technology outlook, technology development areas/needs, etc. for each technology. This
assessment will provide inputs for the development of technology application information packages
(Activity 1.1.1.4) and guidance for the selection of demonstration projects. The second assessment in
Year 5 will update the first assessment based on the results from the demonstration and replication
projects. It will be a shorter exercise compared to the first assessment but will be critical for preparing
an end-of-the-project strategy for technology development. The assessments will be undertaken by a
joint team of international and national consultants.
56.
The understanding of the market potential for CSH is presently limited and current market
development efforts lack focus, thus slowing down CSH proliferation in India. Activity 1.1.1.3 on
market assessment will provide insights into a whole range of issues solar radiation, actual process
temperature range requirements, system-size, economics, industry/sector outlook, etc. which impact
CSH performance and will clarify the precise segments of the process heat market which CSH can
viably address and the volumes corresponding to such segments. Like technology assessment, the
market assessment too will be done twice. The first assessment will be a more detailed study that will
be done towards the beginning of the project i.e. in Year 2. The second assessment will be carried out
in Year 5 and will be utilized for preparing the end-of-the-project strategy for on-going market
development. The market assessment study will draw from interim findings and results of Activity
1.1.1.1 and Activity 1.1.1.2.
57.
The issues of integrating CSH into the existing energy systems of the applicable user
industries/ sectors will be analysed and then develop technology application information packages
consisting of guidelines for selection of CSH technology, design and integration issues, installation,
best operating and maintenance practices and computation of benefits and costs specific to the
selected sector. The technology application information packages will bring about standardization and
predictability in terms of sizing and boundary conditions for CSH performance. Ten technology
application information packages will be developed (two in Year 2, three each in Years 3 and 4, and
the remaining two in Year 5). An indicative list of technology application information packages to be
considered for development is given in Table 14. The list may get modified based on the results of the
market assessment study. The outline of a typical technology application information package is given
in Box 2.
30
Box 2: Technology Application Information Packages

A typical technology application information package will consist of:
- Brief description of the applicable industry (e.g. dairy industry) or the sector (e.g. hotels)
- Typical process descriptions and process flow diagrams; and typical energy consumption and
energy-efficiency possibilities
- Typical thermal energy requirements (temperature range, demand profile, etc.)
- Introduction to applicable CSH technologies and guidelines for selection of optimal
technology(s).
- CSH technology application guide (plant site requirements, design data and basis, system
sizing, integration details, heat storage, process and utility flow diagrams, equipment lists,
operations and maintenance requirements, construction and commissioning requirements,
applicable standards, capital costs, operating costs, cost of delivered energy, financing
mechanisms and incentives, financial analysis, CSH technology manufacturers/suppliers,
balance of system manufacturers/suppliers, design and engineering consultants, case studies
from India and International)
Table 14: Indicative list of CSH technology application information packages that may be developed
during the project
1. CSH application information
packages for steam generation

packages for the dairy industry

packages for hot oil generation

packages for metal treatment 7tank process
packages for rubber industry

packages for pressurised hot
water generation
packages for hot air generation
packages
for
institutional
cooking
10. CSH application

packages
for
discharge facilities
11. CSH application
packages for food
industry

packages for cooling of day-time
use buildings
packages for cooling of 24 x 7
office buildings
14 CSH application information
packages for hospitals
information
zero-waste
14 CSH application information

packages for hotels
information
processing

packages for laundry
58.
The possible impacts of this outcome are increased number of companies that are
interested in the CSH installations, increased number of technology package suppliers and companies
that are using CSH technology application information packages.
GEF support is required for the necessary technical assistance in the performance, technology and
market assessments and developing technology application information package.
Outcome 1.2: Adoption of standards and specifications for guidance of manufacturers and users for
assurance of CSH quality, safety, and performance
59.
Standards and specification on quality, safety and performance forms the basis for
comparing various technological options, developing minimum standards and specifications by the
governments, and guiding the direction of future technology development. Development of standards
and specifications is an important milestone in development of any technology. The performance
standards and technology specifications for CSH systems are yet to be developed fully in India, as
well as internationally. This outcome addresses the need to adopt the developed suitable performance
31
standards and technical specifications that can be used by CSH manufacturers, the government and
the users for assuring the quality, safety and performance of CSH systems.
Output
Activities
1.2.1 Developed CSH
1.2.1.1 Development of performance measurement standards, test
performance standards
protocols, and minimum performance norms for CSH
and technology
applications
specifications
1.2.1.2 Development of field performance monitoring guidelines for
CSH end-use applications
1.2.1.3 Development of specifications for materials/ components/
systems for CSH applications
1.2.1.4 Completion of the process for consideration and adoption
as draft national standards by BIS
1.2.1.5 Completion of the process for standards and specifications
adoption as international standards by ISO
60.
CSH producers, customers, intermediaries, advisors and policy-makers need suitable
neutral and widely accepted standards pertaining to the quality, safety and performance of CSH
technologies and applications. Under Activity 1.2.1.1, one performance measurement standard and
five test protocols (for the five CSH technologies) along with minimum performance norms for each
CSH technology will be developed. The performance measurement standard will provide an equitable
basis for comparing different types of CSH systems and applications. The development of the
standards will take into consideration the existing work done in India by IIT Bombay and SEC under
MNRE sponsored projects and technical guidelines already issued by MNRE 30. It will also take into
consideration any international standards that are available at the time of undertaking this activity.
Specific test protocols and minimum performance norms based on the performance measurement
standards will be developed for the five main CSH technologies. Once the minimum performance
norms are established, it will be possible to start the elimination of sub-standard products and improve
the quality of the CSH systems available in the Indian market. Minimum performance norms will also
be useful for end-users to measure and compare the performance of the different CSH technologies.
The work on the performance measurement standard will start in the third quarter of Year 1 and will be
completed by the end of Year 2. The work on protocols and norms will continue until the end of Year
3.
61.
While it is possible to measure and characterise the performance of individual modules of
solar concentrator collectors in dedicated test lab facilities, the performance of the CSH system (solar
concentrator + balance of systems consisting of piping, storage, controls, etc.) can only be measured
in the field under the actual working conditions. Field performance monitoring guidelines (Activity
1.2.1.2) will be developed for monitoring the field performance of CSH systems. The guidelines will
cover monitoring of the wider CSH system i.e. the CSH technology as well as balance of system
elements. The guidelines will specify the data to be collected, instruments to be used, performance
parameters to be calculated and the procedures for calculation and presentation of results. This work
will be undertaken in Year 2. These guidelines will be used for the monitoring of the demonstration
and replication projects (Component 3).
62.
Development of specifications for materials, components and systems (Activity 1.2.1.3)
will help in standardising the entire CSH systems (and not only the solar concentrator part of CSH
systems) and will result in better quality CSH installations. The specifications can cover piping,
insulation, storage, instrumentation and control, tracking systems, civil works and support structures,
safety features, measuring instruments, etc. This work will be undertaken from Year 2 until Year 5.
30
Please refer to MNRE brief technical note minimum technical specifications of various components of solar steam generating
systems which is available on MNRE website http://www.mnre.gov.in/
32
The development of these specifications will be carried out by technical groups having due
representation from the CSH industry.
63.
BIS is the body responsible for the development and promotion of all national technical
standards in India. Activity 1.2.1.4 will be undertaken to ensure that the standards developed in the
project will become national standards and adopted as draft national standards under the BIS
framework. As the formulation of BIS standards is a long process, the process for adoption as draft
national standards BIS standards will be initiated. However, the finalization of the BIS standards may
extend beyond the project implementation period. Since MNRE is the implementing partner of this
UNDP GEF MNRE CSH project, which is responsible entity to continue to provide advocacy and
influence the finalization, approval and adoption of the standards even if this activity goes beyond the
project duration. This activity will then be integrated as a part of project exit strategy if not completed
during project implementation period.
64.
The International Organization for Standardization (ISO) is the world's largest developer
and publisher of International Standards. ISO is a network of the national standards institutes
of 163 countries, with one member per country, and with a Central Secretariat in Geneva, Switzerland
that coordinates the system. As currently there are no ISO standards for CSH systems, it would be
very useful for the Indian project to coordinate and be a leading player in any process to develop ISO
CSH standards. The BIS represents India in ISO. Under the activity (Activity 1.2.1.5) need based
technical support to the BIS for performance standards and specifications submission to ISO and the
MNRE will be provided to participate in the formulation of ISO standards for solar concentrators/ CSH
systems.
65.
The possible impacts of this outcome are a number of Indian CSH system components
and equipment manufacturers comply with BIS standards, few have entered into international CSH
business through meeting international standards i.e. ISO.
GEF support is required for the technical assistance in the development of performance measurement
standards, field performance monitoring guidelines, and specifications needed for material, system
components required for CSH end-use applications. Support is also needed from international and
national experts to standards setting bodies to enable standard setting bodies to make use of
technical standard setting procedures. Assistance is also needed to cover the incremental cost of
equipment to conduct field assessments.
Outcome 1.3: Adequately capable and operational testing laboratories for verification
manufacturer claims and guidance of CSH users to enable informed decisions
of
66.
Testing facilities have yet to be developed and made available for the laboratory and field
testing of CSH systems in India. Also, while two types of parabolic dish technologies have been used
for thermal applications in India, other key CSH technologies available internationally, in particular
CPC, parabolic trough and Linear Fresnel are yet to be deployed and tested in India. This outcome
addresses the need for proof-of-concept testing in Indian conditions of some of the internationally
available CSH technologies and establishing in place one national and one regional facility to test
CSH technologies and systems. The SEC will take the lead and will coordinate all the activities
planned under this output.
Output
1.3.1 Developed CSH system
components and
equipment testing facilities
Activities
1.3.1.1 Proof-of-concept testing of new technologies at SEC
1.3.1.2 Establishment of a national testing facility for CSH
technologies and applications at SEC
1.3.1.3 Strengthening of one regional testing facility for CSH
technologies and applications
33
67.
Under Activity 1.3.1.1, sample modules of the selected CSH technologies which have not
yet been demonstrated in India will be imported and installed at SEC. The basic objective of this
activity will be to test these CSH technologies under Indian conditions. The SEC staff which will be
trained in testing of CSH technologies (Activity 2.1.4.1) will be responsible for the testing of these
technologies. This activity will start in Year 2 with the purchase of suitable CSH technology sample
modules and testing will continue till the end of the project. Partial financial assistance for the import of
the new (to India) CSH technologies will be provided. The existing rules and regulations that govern
partial financial assistance from government programs shall be applied. If the existing rules and
regulations are not applicable, or there are no such things in existence, the appropriate rules and
regulations will be developed for the provision of this partial financial assistance.
68.
Under Activity 1.3.1.2, SEC will be developed as the national testing facility for CSH
technologies. SEC is already in the process of setting-up a 1 MW CSP facility in association with IIT
Bombay. A solar cooling system and a steam generation system using solar concentrators are also
being planned. SEC is also a testing centre for solar water heaters (flat plate and evacuated tube
collectors). Thus SEC has the necessary basic instrumentation and some useful expertise in testing of
solar thermal systems. The existing capacities of SEC will be supplemented by making available
trained human resources as well as providing partial support for the purchase of equipment for testing
of CSH technologies. A mobile CSH testing facility which can be used for field testing and
performance monitoring of CSH systems will be set up under this activity. As SEC has limited human
resources and hiring of new manpower is not an easy option for it, SEC will explore the possibility of
having a tie-up with a reputed testing centre, e.g. Shriram Institute of Industrial Research, for providing
human resources for operation of the testing facility during the project. This activity will start mid-way
through the second year and will then continue till the end of the project.
69.
The technical capacity of one regional CSH test centre in southern or western India
(Activity 1.3.1.3) will be strengthened following the basic objective of having a regional CSH test
centre catering to the regional CSH testing requirements in southern and western India, where CSH
technologies already have a strong foothold and where there is a particularly good solar energy
resource. This activity will start from the third year and will continue till the end of the project.
70.
Given the vision of global leadership for Indian CSH industry, pertinent knowledge, as
required and as available, will be drawn from foreign sources for development of the Indian CSH
testing facilities. In this context, one or more of the leading international groups involved in the testing
of solar thermal systems will be contacted for potential knowledge sharing. A list of some of the
leading international groups involved in the testing of solar thermal systems is provided in Annex J.
71.
The possible impacts of this outcome are availability of accredited test facilities in India for
CSH components and equipment and a number of manufacturers and equipment suppliers utilize the
services provided by these facilities. Also it is anticipated that some of the international CSH system
component and equipment manufacturers approach these test facilities to enable marketing of their
products in India.
GEF assistance is required to cover the incremental costs in the deployment of CPC, parabolic trough
and Linear Fresnel technologies at SEC in India. Also technical assistance needed to ensure test
facilities, national and regional, are established as per international standards.
Outcome 2.1: Strengthened technical capacity and awareness of stakeholders of CSH systems for
industrial/ institutional process heat applications
72.
This component deals with the awareness creation and capacity building of key CSH
stakeholders. It is proposed that the entire component be managed by the Project Management Unit
34
(PMU) and for this purpose a Project Manager (Awareness and dissemination) will be hired at the
PMU.
73.
Key main barriers in the promotion of CSH technologies for process heat applications in
India are the lack of awareness amongst potential user segments, limited technical ability at the end
user level to properly operate and maintain CSH systems, and a shortage of trained technical and
scientific manpower to serve the CSH industry.
Table 17: Activities under Output 2.1.1
Output
2.1.1 Trained manufacturers/
vendors, installers and
CSH users
Activities
2.1.1.1 Training needs assessment
2.1.1.2 Development of training programmes and materials for
different stakeholders
2.1.1.3 Organisation and conduct of training programmes
2.1.1.4 Organisation and conduct of an international study tour
74.
CSH manufacturers and their vendors, installers and end-users are important
stakeholders in the manufacturing, installation and proper use of CSH systems. There is a need to
further develop the required technical capacities of all these stakeholders. The training of CSH
manufacturers and vendors will focus on all five main CSH technologies - to supplement the current
focus on the Scheffler open source CSH technology. The capacity building of installers will be across
all technologies and manufacturers/suppliers. For the training of the end users, two technical persons
for each of the new CSH systems (30 demonstration and 60 replication projects) will be trained in the
basics of CSH technologies, systems and their proper operation and maintenance. Specific training
modules will be developed for these three segments after conducting a training needs assessment
exercise in year 2. In all six (6) CSH training programmes for manufacturers, their vendors and
installers and nine (9) training programmes for end-users are planned. In total fifteen (15) training
programmes will cover 300 participants. The training programmes will be phased as follows: none in
year 1; three in year 2; five each in year 3 and 4; and two in year 5.
75.
To date, most of the Indian CSH industry has had only limited interactions with the latest
international CSH technology developments. Although India accounts for the great majority of known
global CSH projects, linkages are still very weak between the international development of CSH
technologies and Indian CSH technology and applications experience. The latest technical
developments in IEA/OECD countries offer CSH technical advances that would be very useful in India,
but appear to be largely unknown by the nascent India CSH industry. A study tour for key players in
the Indian CSH industry will be organised to visit international best practice/ innovative CSH
technology developers and installations and interact with the designers and users of these CSH
systems. This exposure to international developments will help the Indian CSH industry to further
improve its products. The study tour will be organised in year 2 of the project. The UNDP GEF MNRE
CSH project will cover 50% of the tour cost of the carefully selected Indian CSH private sector
participants, the remaining 50% of the tour cost will be contributed by their parent organisations and/or
the Indian CSH industry. The study tour will be of at least 2-weeks duration.
GEF support is required for technical assistance in the training needs assessment, design of the
training courses and the cost for implementation of training programmes. Also to cover the
incremental cost involved in the international study tour.
Output
2.1.2 More trained technical consultants that
provide technical services to both CSH
system components & equipment
manufacturers and user
Activities
2.1.2.1 Development of training programme and
material
2.1.2.2 Organisation and conduct of 4 training
programmes
35
76.
Industry/ sector process experts, energy auditors and Energy Service Companies
(ESCOs) have direct access to potential CSH end-users and, if properly trained, they will be able to
identify potential CSH applications and will become an important interface between the CSH
manufacturers/suppliers and end-users. Hence, a capacity building programme to train 100 technical
consultants in CSH will be developed and undertaken. The technical consultants will be trained to
carry-out pre-feasibility and feasibility studies and prepare detailed project reports for CSH systems.
There will be four training programmes -- one each during years 2, 3, 4 and 5. Activity 2.1.2.1 -- to
prepare the training programme and training material -- will be undertaken during year 2. This will be
followed by activity 2.1.2.2 under which the four training programmes will be conducted.
GEF support is required for the technical assistance in the development of training courses and the
cost for implementation of training programmes for technical consultants.
Output
Activities
2.1.3.1 Design and implementation of an academic
2.1.3 Established and supported industryprogram involving courses and applied research of
academic partnership through research
CSH technologies.
programmes to build future technical
capacities
77.
Expanding the CSH industry in India by a factor of 6-8 will require a large expansion in the
available trained technical manpower for the design, in-house R&D, production, marketing, installation
and O&M of CSH technologies and systems. During the project design stage, the Indian CSH industry
reported spending significant time and resources on training their necessary technical manpower. A
shortage of high-end technical manpower is a significant constraint in expanding the number of
successfully operating CSH systems in India. The greater availability of high-end technical manpower
having a good basic knowledge and understanding of CSH technologies and systems is vital for the
required growth of the Indian CSH industry. Almost all the CSH industry players are also involved in
some in-house R&D/pilot testing, and yet generally have only limited collaboration with suitable
academic institutions. Development of closer interactions between the CSH industry and academic
institutions will promote applied research in CSH technologies in academic institutions; improving the
Indian CSH knowledge base and increasing the pool of technical skilled manpower, both are required
for the Indian CSH industry to develop and grow annual CSH installation numbers by the required
factor of 6-8. To address both of these requirements, 10 fellowships (06 for M Tech and 04 for PhD
level studies) will be awarded (three fellowships every year) to train high-end technical manpower for
the Indian CSH industry as well as in undertaking specific joint academic/industry CSH R&D projects.
Efforts will be made to ensure that at least some of the scholarships are provided to female students.
Some of the CSH post-graduate fellows supported through these fellowships may also join academic
institutions as faculty members which in-turn would strengthen academic institutions in undertaking
teaching and research in CSH. Some of the fellowships can also be available to international students
with an aim to develop joint research projects between international and Indian academic institutions
in the field of CSH technologies and applications. The research topics for these M Tech and PhD CSH
fellowships will be jointly decided by the CSH industry and academic institutes. It is also expected that
some of the students availing these fellowships will be working professionals in the CSH industry. It is
envisaged that 5 Indian academic institutions will participate in this initiative. Apart from fellowships,
work with premier educational institutes will be carried out to develop curriculum and course material
for a Masters level course on CSH. The development of the curriculum will be taken up in during year
2 and 3. Vice Chancellors of Universities, Principals, and Head of the Departments of Colleges
offering post-graduate programmes in energy/renewable energy will be consulted to start offering this
course as an elective course.
GEF support is required for the technical assistance in the design and development of curriculum for
academic institutions. Assistance is also required to cover the incremental cost of the fellowships with
specific joint academic/industry CSH R&D projects and other experimental research.
36

Output
2.1.4 Trained staff at SEC and staff at
regional testing centre
Activities
2.1.4.1 Organisation and conduct of international training
programme on testing
2.1.4.2 Organisation and conduct of national training
programmes on testing
78.
Output 2.1.4 is linked with Output 1.3.1 and is aimed at training the required human
resources for the testing of CSH systems in India. Under activity 2.1.4.1, a one-week training of
trainers programme to train 5 solar professionals in the testing of CSH systems, will be organised at a
leading international institution engaged in CSH testing during the beginning of year 2. Some of the
possible international institutions where such a programme could be conducted are Fraunhofer ISE,
Germany (www.ise.fraunhofer.de); ITW Stuttgart, Germany (www.itw.uni-stuttgart.de); DLR, Germany
(www.dlr.de) and CSTB, France (www.cstb.fr), Solar Institute Julich, Aachen, Germany (http://www.fhaachen.de/energy_systems.html). Under activity 2.1.4.2, a national training programme will be
organised at SEC to train personnel involved in CSH testing at SEC and regional testing centre. The
trainers trained in the international training programme will be the faculty for this training programme.
The programme will be organised once the SEC testing facility has become fully functional, tentatively
this programme is scheduled towards the end of year 2.
GEF assistance is required for the cost of implementation of training programmes on the testing for
national and regional test facility staff, and incremental cost involved in the international study tour.
Output
2.1.5 Completed awareness enhancement
programmes for policy makers,
academicians, industries, financial
institutions, etc. to facilitate
replications
Activities
2.1.5.1 Organisation and conduct of International CSH
conference and exhibition in year 2 and 4.
2.1.5.2 Organisation and conduct of awareness
programmes (20 numbers)
79.
Under activity 2.1.5.1, the international CSH conferences and exhibitions planned in year
2 and 4 will be the flagship event for interaction between the CSH industry, researchers, policy
makers, end-users, financial institutions, etc. in India. International participation from researchers and
industries from other countries involved in CSH development, e.g. Austria, Germany, Australia, USA,
Sweden, Italy, Spain, China, etc. will be sought and will help to establish a strong link between the
Indian CSH programme and international developments and key market players. The students who
have been awarded CSH fellowships will also participate and present their research work findings at
the international CSH conferences held in India. It is expected that a total of 20 papers will be
presented in these two conferences which are useful for the policy makers and CSH industry in
general. Each conference will have approximately 200 participants, including 20 international
participants. The number of exhibitors at the associated CSH exhibitions will be at least 20.
80.
Under activity 2.1.5.2, twenty (20) awareness programmes will be undertaken and will
focus on creating awareness about CSH application opportunities amongst potential CSH end-users,
government officials, financial institutions, etc. Several of these programmes will be organised in
collaboration with industry/sector/cluster level associations and chambers of commerce & industry.
The locations and sectors for awareness programmes will be influenced by the results of the market
assessment study (activity 1.1.1.3). The awareness programmes will play an important role in
supporting the on-going market development of CSH technologies and applications in India. With an
average of 80 participants for each programme, a total of 1,600 people will be reached in this activity.
Four (4) programmes will be organised every year.
37
GEF support is required for technical assistance and to cover the incremental cost in organising and
implementation of international conference and exhibition; and costs for the implementation of
awareness programmes.
Output
2.1.6 Completed promotional
campaign for CSH
Activities
2.1.6.1 Design and publication of advertisements in industrial
magazines, design and display of hoardings in industrial clusters,
participation in industrial exhibitions and trade fairs
81.
The promotional campaigns will be targeted at CSH high-potential sectors and segments
and this will be achieved through advertisements in industrial/trade magazines (5 magazines),
hoardings in high-potential industrial clusters (10 industrial clusters), and participation in industrial
exhibitions and trade fairs (5 exhibitions and fairs). Additional MNRE funds will be requested and used
in the design and editing of the promotional materials and it is envisaged that post-project this activity
would be continued by MNRE and the Indian CSH industry. This activity will be integrated as a part of
the project exit strategy. The selection of magazines, location of clusters and identification of industrial
exhibitions/fairs will be influenced by the results of the market assessment study (Activity 1.1.1.3).
GEF assistance is required for to cover the incremental costs involved in the design and editing of the
material that goes for publications, advertisements and display hoardings to make those more
prominent.
Output
2.1.7 Established Concentrating
Solar Heat Technology
Platform and is operational
Activities
2.1.7.1 CSH Technology Platform formation and facilitation
82.
The CSH industry in India is currently at a nascent stage of development, and as such
does not yet have a CSH industry association to represent its interests. There is a recently formed
Solar Thermal Federation of India (STFI) for the growing number of solar flat plate and evacuated tube
manufacturers in India, but STFI does not cover CSH. In the absence of an existing CSH industry
association or other platform to focus on the key issues regarding the necessary development of the
CSH sector in India, the formation and operation of a CSH technology platform will be facilitated. This
Concentrating Solar Heat Technology Platform (or similar title that will be chosen by the CSH industry
in India) will be include all the key stakeholders involved in the development of CSH technologies and
applications (CSH manufacturers, researchers, consultants, testing centres, MNRE, etc.) and will be a
platform for knowledge sharing and developing strategies for future development of the sector. The
platform will be initially facilitated by the PMU. The platform will organise meetings of its members at
least twice a year. Meetings will be organised on a rotation basis at different locations and will be
jointly funded by the project and the host institution/industry. The platform will also constitute task
forces to study and report on specific issues. The various study reports, test protocols; etc. prepared
under the project will be presented to and discussed at the meetings of the platform. The platform can
also provide suggestions on the yearly action plans of the project.
83.
The possible impacts of this outcome are a number of stakeholders that make use of this
platform in addressing issues/problems concerning the energy performance and marketing of CSH
products. Apart from this there will be an increase in the number of technology suppliers; companies
that install CSH systems, the rest of the three technologies are available in India and an increase in
the number of financial institutions. The ideas and recommendations from the presented papers at the
conferences are expected to be useful in assisting the policy makers in decision making process.
38
GEF support is required for the technical assistance in assessing experiences elsewhere and to
prepare a charter document for such institutions. Also assistance is needed for the development of
stakeholders network.
Outcome 2.2: CSH project deliverables facilitated and/or influenced the widespread replication of
CSH technology applications in India
Output
2.2.1 Documentations on the project outputs,
case studies, best practices and lessons
learnt disseminated to ensure larger
replication
Activities
2.2.1.1 Design, launching and operation of project
website
2.2.1.2 Publication of quarterly project newsletter
2.2.1.3 Production and publication of brochures,
case study reports, and a compendium that
includes process documentation and project
results
84.
The project website (activity 2.2.1.1) will be the main tool for dissemination of information
and knowledge gained during the project. The project website will provide information of UNDP GEF
MNRE CSH project, provide links to the MNRE CSH and other relevant programmes, CSH
technologies, links to technology suppliers websites, testing facilities, technology application
information packages, reports of the studies conducted under the project, case studies on
demonstration and replication projects, project newsletters, project announcements, presentations
made in the awareness programmes and international conferences, process documentation etc. The
project website will be updated monthly under the guidance of the PMU. Hit rates will be monitored
and feedback provision provided to improve the quality of website.
85.
The quarterly project newsletter (activity 2.2.1.2) will primarily provide information on the
project activities. It will be disseminated both in printed as well as in e-newsletter formats. This activity
will be starting from the third quarter of first year.
86.
Under activity 2.2.1.3 project brochures will be prepared. The brochures will be updated
every year. Case studies on the demonstration and replication projects will also be prepared, each
demonstration case study will be of 4-6 pages and replication case studies will be 2-4 pages. The
case studies will be made available both in printed and e-formats. Process documentation will be
prepared to capture the steps, outcomes, and lessons learnt, etc. This document will be printed and
provided on e-format. It will be about 200 to 250 pages in length. An audio-visual capsule will be
prepared on CSH. This will be provided to TV channels for telecast as well as will be shown during
awareness programmes, conferences, exhibitions, etc. As stated earlier, all this information will be
available on project website. The possible impacts of this outcome are expected to be an increase in
number of CSH replication projects including wide scale use of information, enhanced knowledge and
understanding of CSH.
GEF assistance is required to design and produce a high quality promotional material such as
newsletter, brochures and compendium. Technical assistance is also needed to develop a strategy
and disseminate promotion material which otherwise not expected to reach wider stakeholders and
ensure its sustainability.
Outcome 3.1:
Increased number of commercial and near-commercial CSH technologies for diversity

of applications
87.
In India, out of the five key worldwide CSH technologies, only two i.e. parabolic dish with
fixed focus (e.g. Scheffler) and parabolic dish with moving focus (e.g. ARUN) have been used to date
for thermal process applications in India. Parabolic trough, linear Fresnel and CPC technologies have
39
not yet been used for commercial CSH applications in India. The lack of a full suite of applicable CSH
technologies in India means that there is often a mismatch between the technology deployed and the
real process application temperature requirements or other CSH system attributes needed. In
addition, the absence of a systematic monitoring of in-use process CSH applications means that the
performance of existing CSH applications is not quantified and hence the necessary technical learning
from the operation of the existing CSH applications in India is limited. In the absence of proper
monitored performance data, the credibility of the existing CSH technologies actual performance in
real applications in India is low, and this is a key barrier to the increased uptake of CSH in India. This
component will support 30 demonstration projects which will demonstrate the application of solar
concentrator technologies which have not been used so far in India, as well as new CSH applications
or significant improvements over the CSH technology packages currently available. In addition, 60
replication projects will also be supported, which will either be replications of the CSH packages
demonstrated during the project or will use already available CSH packages. The performance of all
the demonstration and replication projects will be monitored. The improved technical and economic
performance knowledge and the greatly increased number of operational CSH projects will increase
future CSH users confidence in the technology and lead to faster dissemination of CSH technologies
and applications in India in the future. Also this assistance is intended to be a risk mitigation measure
considering the high investments involved in the process integration of CSH for thermal applications.
Due to the lack of existing systems performance data, risks are anticipated by the end-users in the
operation of these systems, and the lack of performance and quality standards for equipment used
and skill sets at all levels. The expected good results from the targeted support that will be provided
under the project are anticipated to encourage private sector to participate in demonstration or
88.
As mentioned in some of the above sections, the MNRE subsidy scheme is relatively
accessible to all those who are interested to implement CSH systems for process based heat
applications. As part of the existing procedure, a project proponent needs to complete a document (of
four to five page) with listed parameters which doesnt require detailed information of a project
(including critical technical evaluation parameters and data & financial parameters) and also lacks
assessment. This has resulted in ignorance of feasibility studies and its importance to see a difference
between technologies and financial analysis. Although there are 71 installations in India as on date, its
performance data is not available. Obviously, this has resulted in the promotion of simple and low cost
CSH technologies.
89.
A total of 30 demonstration projects involving the installation of an approximate overall
collector area of 15,000 m2 (approx. 500 m2 per project) and 60 replication projects involving the
2
2
installation of an approximate overall collector area of 30,000 m (approx. 500 m per project) will be
supported. Salient features of the demonstration and replication projects are given in Box 3 and Box 4
respectively.
Box 3: Demonstration Projects
Thirty (30) demonstration projects will be implemented under this UNDP GEF MNRE CSH project.
Qualification
The Demonstration Projects Component will support projects demonstrating CSH technologies or
applications which, although at or near commercial viability and having potential for replication,
currently face market barriers due to lack of expertise, knowledge or market confidence and as such
have not been successfully demonstrated previously. Projects that offer significant improvement over
already demonstrated CSH technologies or applications will also be considered as demonstration
projects.
Key selection criteria
- The demonstrations will initially focus on key sectors having large replication potentials e.g. dairy,
hotel, hospital, textile, pharmaceutical, chemical, metal treatment, food processing, institutional
40
cooking, etc. The market assessment study will assist in identifying the most promising sectors
for demonstration projects.
Improvements in CSH technical and/or economic performance, e.g., performance improvement
2
2
(higher kW th/m ), cost reduction (lower INR/m ), improvement in cost/performance ratio (lower
INR/kW th), performance consistency (reliability, durability over component life), improvements at
component level (e.g. mirrors, tracking system), improvements in life of components (e.g.
degradation of mirrors), improvements at system level (e.g. integration with process, integration
with existing energy system, integration with auxiliary/ backup system, automated operation,
control strategy and control system, system configuration optimisation, system with storage
(short-term/ long-term), performance monitoring system, operation with different working fluids,
and scale-up with attendant improvement in technology parameters.
Expected date of commissioning.
Assistance available for demonstration projects

- The activity of conducting feasibility study and preparation of Detailed Project Report (DPR) are
part of the UNDP GEF MNRE CSH project. In the baseline scenario, it is not required to conduct
such studies and assessments. This has resulted in a lack of information pertain to the 71
installations in India as on date. Therefore, technical assistance towards conducting these is
considered as an incremental activity and provides reimbursement of up to US $ 2,000 per
feasibility study and up to US $ 8,000 per Detailed Project Report (DPR) preparation.
- Technical training of two technical persons in CSH operation and maintenance per site.
- Technical support and hand-holding during the projects execution.
- In the baseline scenario, the installation of performance monitoring equipment is not mandated or
required. Therefore, additional financial support is needed (10% of the project cost with a
maximum support of US $ 20,000) over and above the available MNRE subsidy. The additional
financial support will cover the cost of performance monitoring equipment and partly cover the
cost of the obligations mentioned below.
- Post-commissioning performance measurement and evaluation studies.
Obligations under demonstration project scheme
- The participant must agree to report performance data in the specified format at the specified
periodicity.
- The participant must agree to site visits by staff of the project and/or its designated agent(s) for
the purposes of technical or verification inspection, and to carry out performance monitoring.
- The participant must be prepared to participate in follow-up research as may be commissioned by
the project to establish the programme's impacts and achievements.
- The participant must agree that the UNDP GEF MNRE CSH project may develop a case study for
dissemination and allow the acquisition of related information and data (protecting as appropriate
all agreed confidential or commercially sensitive information/data).
- The participant must be prepared to participate in dissemination activities such as making
presentations in workshops and participating in other such forums organised by the project.
- The participant must be prepared to allow access of the site to designated persons for the
purposes of demonstrating an operating installation subject to reasonable frequency and notice
period.
- Obligations will be in force for a period of 2 years from commissioning of the demonstration
project.
Box 4: Replication Projects
Sixty (60) replication projects will also be supported.
Qualification
The replication projects that will be supported will either implement the application of existing CSH
41
technology packages or implement the application of CSH technology packages demonstrated during
the project.
Assistance available for replication projects
- Reimbursement of cost of feasibility study (up to US $ 2,000).
- Technical training of two technical persons in CSH operation and maintenance per site.
- Financial support to a maximum of US$ 6,000 for procuring and installing the performance
monitoring equipment.
Obligations under replication project scheme
- The participant must agree to report performance data in the specified format at the specified
periodicity.
- The participant must agree to site visits by staff of the project and/or its designated agent(s) for
the purposes of technical or verification inspection, and to carry out performance monitoring.
- Obligations will be in force for a period of 1 year from commissioning of the replication project.
90.
For the management of this component the PMU will engage the services of two or more
suitably qualified support institutions. These institutions will act as Component Managers for this
project component. One Component Manager will be responsible for North, East and Central India;
the other will be responsible for South and West India. The selection of the Component Managers will
be through a call for proposals. Expertise in renewable energy and energy-efficiency, experience in
conducting feasibility studies and preparation of DPRs, experience in performance monitoring and
network and reach in the industry will be some of the most important criteria for selection of the
Component Managers. The selection of the two Component Managers will be completed before the
end of Year 1.
91.
The main tasks of the Component Managers will be to: (a) Manage the preparation of
feasibility studies and DPRs; (b) Act as a regional technical resource centre for CSH (c) Assist the
PMU in the selection of the demonstration and replication projects (d) Carry out periodic supervision
of the implementation process of demonstration and replication projects (e) Collect and analyse the
data on the performance of the demonstration and replication projects (f) Prepare case studies of the
demonstration and replication projects.
92.
Under this component, 90 feasibility studies, 30 DPR preparation, 30 demonstration
projects and 60 replication projects will be supported. The phasing of work is shown in Table 25. A
detailed list of sequence of activities for the demonstration and replication projects is provided in
Annex K.
Table 25: Phasing of work under Component 3
Completion of
Feasibility studies
Completion of DPRs
Installation and
commissioning of
Demonstration
projects
Installation and
commissioning of
Replication projects
Year 1
Year 2
Year 3
Year 4
Year 5
Total
10
30
40
10
90
10
10
10
30
12
30
10
12
24
60
42
Output
3.1.1 Completed feasibility
studies for demonstration
and replication projects of
various CSH technology
applications
Activities
3.1.1.1 Conduct of the feasibility studies and approval of
applications for support for completed feasibility studies
93.
Through an EOI, several consultancy organisations will be short-listed to conduct
feasibility studies for CSH projects based on a set criteria and evaluation. Awareness workshops and
other means will be the venues to identify prospective user industries and are sensitized about CSH
potentials. Such user industries will be encouraged and supported to submit EOI for the UNDP GEF
MNRE CSH project supporting feasibility studies being undertaken. The industries will be able to use
the services of a short-listed consultancy organisation for the preparation of the feasibility study. The
cost of the study will be reimbursed after the review of the feasibility study report and following the
host sites management plans to act on the feasibility report.
GEF support is required for the technical assistance in the preparation of Expression of Interest (EOI)
and design & set the criteria for the evaluation of EOIs for both consultancy organizations that conduct
feasibility studies as well as prospective users.
Output
3.1.2 Completed Detailed
Project Reports (DPRs) for
demonstration projects
Activities
3.1.2.1 Preparation of DPRs and approval of applications for
support for completed DPR
94.
Through an EOI, several consultancy organisations will be short-listed to prepare DPR
studies for CSH projects based on a set criteria and evaluation. EOI for the preparation of DPRs for
demonstration project will be sought from prospective users. It is envisaged that most of these
requests will come from the industries where feasibility studies have already been undertaken.
31
Through a selection process , industries will be selected for the demonstration projects. The
industries will be able to use the services of a short-listed consultancy organisation for the preparation
of the DPR. The cost of DPR preparation will be reimbursed after the review of the DPR report and
following the host sites management plan to act on the DPR.
GEF support is required for the technical assistance in the preparation of Expression of Interest (EOI)
and design & set the criteria for the evaluation of EOIs for both consultancy organizations that prepare
DPRs as well as prospective users.
Output
3.1.3 Developed and commissioned
demonstration projects in at least 5
sectors
Activities
3.1.3.1 Installation and commissioning of
3.1.3.2 Conduct of continuous performance
monitoring of commissioned and operational
demonstration projects for at least one month
95.
The installation and commissioning will be undertaken by the CSH vendor and the industry
as per the DPR. After the commission of the project, the industry will submit a report to the PMU with
31
Co-financing letters from industries that will apply CSH technologies will not be available during the CEO
Endorsement stage since the host demonstration companies and the potential replicants will be identified and
selected only during the project implementation. The selection will be carried out through a transparent process.
43
at least one -month of continuous performance data for the installed CSH system. On receipt of this
actual CSH performance report, the 50% of initial GEF contribution to the demonstration project cost
will be released.
GEF support is required for meeting the incremental cost in the implementation of monitoring protocol
for demonstration projects through installation of additional devises in order to monitor and record the
data.

Output
3.1.4 Results of the performance monitoring, analysis,
and evaluation for demonstration projects
Activities
3.1.4.1 Performance monitoring and analysis
of demonstration projects
3.1.4.2 Evaluation of demonstration projects
96.
The CSH demonstration project site will collect the necessary CSH performance data and
submit this data to the project management unit (PMU) at the end of each of the first two years of
successful CSH system operation. The data of the first full year of successful CSH system operation
will be analysed by the Component Manager and will be verified through a visit to the relevant CSH
demonstration site. After the analysis and verification of first full year of successful CSH system
operational and performance data (in terms of technical and financial aspects), the remaining 50% of
the GEF contribution to the demonstration project will be released. These performance data will be
used for an independent third party evaluation of the projects in terms of technical and financial
aspects and prepare case studies. The data reported by the CSH site at the end of second full year of
successful CSH system operation will be used to update the case studies. The possible impacts of
this outcome are expected to be an increase in number of CSH replication projects including wide
scale use of information pertain to the developed application information packages.
GEF assistance is required for implementing performance monitoring protocol (recording and
maintaining data), development of an evaluation strategy for demonstration projects evaluation and to
prepare case studies.
Outcome 3.2: Improved technical and economic performance of commercial and near-commercial
CSH technologies in an increased diversity of applications
Output
3.2.1 Documentation of results
of demonstration and
replication projects
Activities
3.2.1.1 Development and maintenance of CSH projects database
3.2.1.2 Preparation of case studies
97.
A database of all CSH projects in India will be developed and will be accessible through
the project website. Through a search option, data can be filtered and also online reports can be
generated. Wherever it is requested to maintain the data confidentiality, it will be followed, for example
process related data in terms of production quantities etc. During the project implementation period,
the database will be operated and maintained by the PMU. Eventually at the end of the project, the
database will be handed over to MNRE as part of project exit strategy. One case study will be
completed for each demonstration project. The case study will utilise the data submitted at the end of
first full year of successful CSH system operation and will be updated based on performance data for
the second full year of successful CSH system operation.
GEF support is required for the technical assistance in the development of database, collection of data
from the projects and maintenance of the database.
44

Output
3.2.2 Completed performance
monitoring, analysis and
overall evaluation for
demonstration and
Activities
3.2.2.1 Set the criteria for selection and approval of applications for
support of replication projects
3.2.2.2 Installation and commissioning of replication projects
3.2.2.3 Performance monitoring and analysis of replication projects
3.2.2.4 Conduct of the overall evaluation of demo and replication
projects
98.
It is anticipated that many of the replication projects may result from the feasibility study
support from the UNDP GEF MNRE CSH project, but it is also anticipated that some of the replication
projects will arise from on-going baseline CSH marketing activities. The registration of replication
projects will therefore be a continuous exercise. All projects coming to MNRE for subsidy support
through its CSH programme will be given an option to be considered as replication projects under this
UNDP GEF MNRE CSH project. For replication projects, the installation and commissioning will be
undertaken by the CSH vendor and the industry as per the relevant DPR. After the commissioning of
the replication project, the industry will submit a report with one-month of continuous successful
performance data for the relevant CSH system. On receipt of this report, the full 100% financial
assistance to the replication project will be released. The relevant CSH site will collect the relevant
CSH systems performance data and will submit it to the PMU at the end of a year-long successful
CSH system operation. The data will be analysed by the Component Manager. The possible impacts
of this outcome are expected to be an increase in number of CSH replication projects where all the
five concentrated solar heat technologies of successfully demonstrated and replicated.
GEF assistance is required for meeting the incremental cost in the implementation of monitoring
protocol for demonstration projects through installation of additional devises in order to monitor and
record the data as required.
Component 4:
Sustainable financial approach in the adoption of CSH technologies and

Outcome 4.1: Enhanced understanding of the financial viability of CSH technologies and measures
to mitigate investment risks
Output
4.1.1 Documented financial viability
of CSH technologies,
applications, and mitigation
approaches of investment
risks
Activities
4.1.1.1 Analysis of financial viability of CSH technologies and
applications, and comparative evaluation with alternative or
competing solutions such as biomass energy or energy
efficiency
4.1.1.2 Assessment of alternative financial options for mitigation
of investment risks
99.
In realizing the ambitious goals (for the year 2022) outlined under the National Solar
Mission, suitable financial incentives in the form of subsidies and low interest loans will be made
available. Therefore, the intension in the project is not to formulate new financial support schemes
right away, rather develop and improve/enhance the existing MNRE CSH subsidy scheme considering
the close gap between expected and actual payback periods. This gap is further expected to close by
the end of the project due to the reduction in technology development costs and availability of the
system components in the country due to indigenous production. In the absence of high quality and
long-term performance data of the CSH technologies and applications, it is currently impossible to
accurately analyse the financial viability of CSH technologies and applications. Hence, the need to
gather more information (through studies and surveys) to solidly establish the economics of the local
application of CSH technologies in industries. It is expected that the results of such studies will provide
the relevant basis for formulating appropriate policies and influencing the approval and enforcement of
45
such policies that will support the creation and implementation of performance based subsidy
schemes. The feedback during the stakeholder consultations indicated that for most CSH applications,
the current simple pay-back period for CSH systems is in the range of 5 to 10 years after considering
existing incentives (subsidy, depreciation benefits, etc.) available from MNRE. Therefore, in the third
year of the project, when several CSH technology and application packages are available and in use,
and data from CSH demonstration and replication projects will start becoming available, a detailed
analysis of the financial viability of CSH technologies will be undertaken.
100.
The study of CSH financial viability will be followed-up by an assessment of alternative
financial options for the mitigation of CSH investment risks. This assessment will also look into the
possibilities of alternative financial models e.g. ESCO model or accessing Clean Development
Mechanism (CDM) revenue. If found suitable, some of the demonstration and replication projects may
then be undertaken considering alternative financial options. The possible impacts of this outcome are
availability of feasible financial options and increased use of such options by demonstration and
replication projects. Also more number of banks and/or financial institutions agreed to finance CSH
projects. The replication projects are expected from the year 1 whereas the installation and
commissioning of demonstration projects will start from the year 2. By the year 3, at least two potential
and feasible financial options for the application of CSH technologies are expected to be identified and
promoted, so that the project will have further two more years to implement demonstrations and
replications as per the updated project scenario. Since the Executing Partner of the project is MNRE
and selected projects will have to follow set guidelines of the UNDP-GEF project in order to avail of
the benefits listed under project. It that regard, it can be assured that any new developments or
recommendations generated during the project implementation period can be enforced, including
possible modifications to the existing MNRE subsidy scheme.
GEF support is required for the necessary technical assistance in the analysis of financial viability of
CSH technologies in comparison with alternative or competing solutions and assessment of
alternative financial options.
Outcome 4.2: Promulgation of favourable financial policies that promote increased use and
promotion of CSH technologies for low and medium temperature process heat
applications
Output
4.2.1 Formulated recommendations for financial
and promotional policies and strategies for
adoption by Government of India
Activities
4.2.1.1 Assessment and recommendations for
policies on financial incentives, schemes and
mechanisms
101.
Mid-way through the project in year 3, after completion of the study on CSH financial
viability, a study will be undertaken to assess MNREs policies on financial incentives. This will also
identify and analyse the effectiveness of MNRE CSH support schemes and measures for
improvement. The study will come out with recommendations which can then be considered and
implemented by MNRE. The possible impacts of this outcome are increased number of projects
benefit from such policies and a number of banks and/or financial institutions agreed to finance CSH
projects.
GEF support is required for the necessary technical assistance in the assessment of existing policies
and formulation of policies and guidelines for the financial options in order to promote alternative
financial options to mitigate investment risks.
8.
KEY INDICATORS, RISKS AND ASSUMPTIONS
Indicators
102.
Overarching key indicators of the projects success (impact indicators) include:
46
30 demonstration projects and 60 replication projects totalling to 45,000 m of solar

collector area directly supported by the project, installed and monitored during the 5year project duration. The impacts due to this will be energy savings derived from the
30 demo and 60 replication projects which would contribute to GHG emission
reductions of 32,900 t CO2 during project implementation of five years. Also there will
be an increase in new businesses or growth of existing businesses related to CSH
technology applications (e.g., repair and maintenance of CSH systems).
10 CSH technology application information packages developed, utilised and
available for further CSH market development support at the end of the project
implementation period.
Commercial availability of all 5 CSH solar concentrator technologies in the Indian
market by EOP. As an impact, it is expected to be about thirty number of technology
package suppliers are available to market CSH technologies in India by EOP.
2
2
Annual sales of CSH to increase from around 2,000 m /year in 2010 to 15,000 m
/year in 2016.
103.
The project results framework outlined in section 11 below provides a detailed list of
project progress (output) indicators for the various outputs of the project.
Risks
104.
The project can be considered to face two categories of risks: external
(policy/India/international-related) and internal (risks inherent to the project implementation itself and
that can be largely controlled by the projects management or implementation):
105.
The key external risks include:
a) Failure to secure effective on-going support from MNRE (the main project implementing
agency and provider of most of the projects co-financing) for example due to adverse
impact changes in MNRE leadership, and/or reduced focus on off-grid solar energy
programme, and/or reduced focus on CSH vis--vis CSP or solar thermal technologies and
applications.
b) Failure to appropriately strengthen the human capacities at MNRE and/or at the SEC to
effectively implement this UNDP GEF MNRE CSH project. An example of possible causes
would be the frequent shifting/transfer of expert government staff across agencies and
departments leading to the loss of capacity that has already been built for the existing MNRE
CSH support programme and/or for this GEF CSH project.
c) The demonstration and replication projects will be strongly reliant on the continued existence
and accessibility of CSH subsidies from the MNRE solar support programme. However, the
current MNRE CSH subsidy programme does not sufficiently distinguish between the
performances of the different CSH technologies, and has been essentially developed for the
Scheffler CSH technology. Any failure to link the MNRE CSH subsidy with CSH performance
will continue to deter high performance CSH technologies from entering the Indian CSH
market and undermine this UNDP GEF MNRE CSH projects viability.
d) A dramatic reduction in the international price of oil or large subsidies for oil products such as
furnace oil for process heat applications in India, and/or a significant reduction in the price of
electricity and and/or a major improvement in the reliability of electricity supply hence
significantly undermining the economics of CSH in India.
106.
The internal risks include:
a) Failure to trigger a suitable positive response from manufacturers of solar concentrators

(Indian and International) to expand the supply of CSH system types in India and to scale up
manufacturing so that economies of scale effects lower CSH prices towards a point where
simple paybacks are more attractive, including if MNRE CSH subsidies are reduced or even
47
eventually withdrawn. Without the supply of improved quality and a much-larger variety of
CSH systems, the projects effectiveness will be adversely affected.
b) Failure to trigger a positive response from the Indian CSH user industries, which may happen
if relevant interest rates rise, or the Indian economy dramatically slows down, or in particular if
the awareness generation and capacity building efforts from the project are not ineffective.
c) Shortage/unavailability of necessary expert manpower to work in CSH research and industry
For all its activities, whether it is development of CSH information packages, development of
standards, development of testing facilities, capacity building, or implementation of
demonstration and replication projects, the India CSH project will require manpower with
expertise in CSH. However, the available human resource base for CSH research and
industry in India is very limited. The Indian energy industry, particularly the renewable energy
industry, is growing at a very rapid pace and there is an overall shortage of skilled human
resources, and strong competition to attract what human resources exist. Within the Indian
solar energy field, with the launch of the JNNSM, the main focus is now on large gridconnected power generation plants and there is a risk that the CSH field could lose human
resources to the higher profile CSP industry in the short to medium term.
d) Delays in completing the recruitment process for component managers and other India CSH
project consultancy assignments.
e) The project is unable to hire competent consultants on account of particularities and
constraints in the process of selection.
f)
A major escalation in the necessary remuneration rate for project staff or consultants placing
pressure on project budgets.
107.
A detailed risk-analysis table is available in Annex A. This also includes suggestions for
countermeasures to deal with outlined risks to ensure successful implementation of this UNDP GEF
MNRE CSH project.
Assumptions
108.
The assumptions for this project revolve around expectations from both the government
and market sides. All the feedback received during the project preparatory phase is that the Indian
government (through MNRE) will continue to support CSH development through on-going subsidies
and soft loans, and will strengthen the team working on CSH in the Ministry and at the SEC. Suitable
and timely revision in MNREs subsidy programme and the rapid design and implementation of a
results-oriented R&D programme in CSH will be very important project success factors. The
assumption is that CSH will gain more prominence in India and will attract increased support within
MNRE.
109.
On the other hand, the project also depends on a positive response from the market
consisting of the CSH manufacturers/supply chains and user industries/institutions. The assumption is
that the CSH industry and interest of the user industries/institutions will grow from the current levels
with the interventions provide by this UNDP GEF MNRE CSH project.
9.
COST-EFFECTIVENESS; GEF INCREMENTAL REASONING
110.
As mentioned, India is heavily dependent on import of fossil fuel to meet the growing
thermal energy demand for process based heat applications in various industries, communities and
commercial establishments. The country has the potential to harvest renewable energy resources,
especially solar energy, to contain the fossil fuel use as well as mitigate GHG emission reductions
through reduced fossil fuel use. The Government of India recognized the potential and benefits of
deploying CSH technologies. The estimated potential is about 5,000 trillion kWh per year. The incident
2
solar energy over Indias land area is at an average of 5-7 kWh/m /day. The market development and
promotion of solar concentrators for process heat and other thermal applications is an emerging and
48
exciting market opportunity in India, and is the target of UNDP GEF MNRE CSH project. With the
various interventions that will be carried out under this proposed project and the expected outputs, it is
2
estimated that by the end of this project, for each m area of solar concentrator installations, 0.35 t
CO2 per year would be replaced on a conservative basis. The proposed project will facilitate the
realization of these outcomes through the barrier removal activities and other capacity building and
technical assistance activities that will be implemented under the project. Therefore, the approach of
replacing fossil fuel use through solar concentrator technology is considered as more appropriate,
holistic and cost effective considering the fact that process heat and other thermal applications in
industries, communities and commercial establishments is quite large.
111.
This UNDP GEF MNRE CSH project has been designed as a fully integrated and suitably
funded and co-funded series of components and activities to remove the multiple barriers facing the
widespread adoption of CSH in India. The project will support and be supported by the on-going
MNRE CSH programme.
112.
In the absence of the UNDP GEF MNRE CSH projects interventions, the rate of
2
penetration of CSH systems will be at 3,000 m per year, the market for CSH systems will remain
stagnant and essentially at the current level of sales, the number of CSH technology application
packages will remain limited, there will not be any systematic effort to develop the market for CSH
technologies, the human-resource base will remain small and inadequate, and the number of active
CSH manufacturers will remain small and inadequate.
113.
The GEF contribution of USD 4.4 million will result in cumulative direct emission reduction
2
2
of 32,900 tCO2 from the demonstration (15,000 m ) and replication projects (30,000 m ) during the 5year lifetime of the project. Assuming economic lifetime of the CSH systems as 20 years, the direct
emission reduction will be 315,000 tCO2. If the GEF contribution (USD 4.4 million) is divided by the
combined direct and direct post-project emission reductions, this gives a corresponding direct GHG
32
unit abatement cost (UAC) (i.e. GEF$ per tCO2) of USD 13.97/tCO2 .
114.
After the UNDP GEF MNRE CSH project completion, investments will be affected by the
long-term impacts of the barrier-removal activities, e.g., increase in technical capacity and sustainable
financial approach. The corresponding CO2 emissions reduction is referred to as indirect emission
reduction. A replication factor of 3 has been chosen as a conservative estimate for CSH systems use
in process based heat applications. Thus, indirect emission reductions (bottom-up) over 10-year are
estimated at 315,000 t CO2 * 3 = 945,000 t CO2. In the alternative scenario, it is estimated that about
2
50,000 m of CSH systems area is expected to deploy annually. The cumulative amount of emission
reductions achieved would be 1,095,150 t CO2 over the period 2011/12-2025/26 (that is, a total
duration of 15 years during the project implementation period and 10 years of post-project scenario).
Of course, this potential cannot be fully attributed to the GEF interventions alone as other projects
may have an influence over the CSH systems promotion and implementation. Uptake of CSH
technologies would also takes place to some extent due to on-going (and future) national efforts and
future donor-funded initiatives. It is proposed to apply conservatively a causality factor 4 of 80%. This
gives an indirect emission reduction (top-down) of 1,095,150 t CO2 * 80% = 876,120 t CO2. The range
of indirect CO2 emission reductions is 876,000 945,000 tonne CO2.
10.
SUSTAINABILITY AND REPLICABILITY
Sustainability
115.
After completion of the proposed UNDP GEF MNRE CSH project, it is expected that the
impetus for developing the CSH market would continue in India. Sustainability of this GEF-supported
project will be ensured by:
32
This value is relatively lower than the current CDM secondary CER price, which is about US$ 20/tonne CO2
(PointCarbon, 7 June)
49
o
o
o
o
o
o
Emergence of a stronger and more diverse CSH manufacturing and supply industry in
India.
A significantly increased number of successful CSH projects working at high performance
levels as promised at the time of sale.
Availability of well-documented case studies and technical literature in the public-domain.
High level of awareness of CSH amongst the high-potential end-use industries in India.
A robust and well-functioning CSH testing infrastructure in place.
Academic and research programmes in the CSH field at 5-10 Indian universities.
Replicability
116.
The implementation of 90 demonstration and replication projects with well-documented
performance data will showcase the relevance, usefulness and cost-effectiveness of CSH
technologies in real applications in India. The availability of 10 technology application packages
consisting of 5 different solar concentrator technologies will form the basis for a rapid increase in the
replication projects post project-end.
117.
India has the largest number of CSH systems in the world and perhaps has one of the
largest potentials for CSH applications. The success in India for CSH is highly likely to lead to similar
initiatives being launched in other countries. The work done on testing protocols and standards can
form the basis for future international CSH protocols and standards.
50
11. PROJECT RESULTS FRAMEWORK

The project will contribute to achieving the following Country Program Outcomes (as defined in CPD):
Outcome: Progress towards meeting national commitments under multilateral environmental agreements (CP, Outcome 4.3)
Output: Strengthened capacity for low carbon development and sustainable management of natural resources (CP, output 4.3)
Output indicators: Number of clean technologies/mechanisms piloted.
CPAP outcomes and indicators:
Outcome: Progress towards meeting national commitments under multilateral environmental agreements (CPAP, Outcome 4.3)
Output: Supporting national development objectives with co-benefits of mitigating climate change
Output indicators: (a) Annual reductions in greenhouse gas (GHG) emissions in India; (b) million USD flowing annually to India from GEF through
UNDP for this programme; (c) number of additional UNDP initiatives for achieving global and national targets under multilateral environmental
agreements.
Primary applicable key environment and sustainable development result area:
Strengthened national capacities to mainstream environment and energy concerns into national development plans
Applicable GEF strategic objective and program:
Strategic Objective: Off-grid renewable energy
Strategic Program: Strategic Programme (SP-3) Promoting Market Approaches for Renewable Energy under the Climate Change focal area strategy of
GEF-4
Applicable GEF expected outcomes:
Increased market penetration of CSH systems

Applicable GEF outcome indicators:
a) CO2 emission reductions (tonnes CO2) achieved
b) Installed area (m2) of CSH systems for process heat applications
51
Table 34: Project Planning Matrix (PPM)

Strategy
Objectively Verifiable Indicators

Indicator
Project goal: Reduced Cumulative CO2 emission reduced from start of

GHG emissions from
project to End-Of-Project (EOP), (tCO2e)
use of CSH systems for
low and medium
temperature process
heat
Project objective:
Cumulative installed area of CSH systems for
2
Increased use and
process heat applications (m ) by EOP
promotion of CSH
No. of companies that have installed CSH
systems for low and
systems by EOP
medium temperature
process heat
applications
Outcome 1.1:
Enhanced
understanding of
CSH technologies,
applications and
markets
Output 1.1.1:
Developed
technology
application
information
packages and
characterised
technologies,
applications, and
markets
Baseline
0
Means of Gauging
Success
Target
32,900
20,000
80,000
71
161
18
30
60
71
131
90
15
Number of technology assessment reports of

CSH technologies by EOP
Number of market assessment reports for CSH

process heat applications by EOP
No. of technology package suppliers that are

available to market CSH technologies in India
by EOP
No. of companies that are interested in the
installation of CSH systems by EOP
No. of companies that are potential users of
CSH process heat systems by EOP
No. of companies that used the information
packages in purchasing and installing CSH
process heat systems by EOP
Number of performance assessment reports of
existing installations by year 2
Critical Assumptions
M&E reports of the

demonstration/replica
tion projects
Timely execution of planned activities

with adequate resource mobilization.
Field performance is monitored and
recorded as per available guidelines.
Annual reports of
MNRE
Timely implementation of demo and

Selected end users for demos and
replications have sufficient equity and
financial position is good.
- Technology and
market assessment
reports available at
the EOP
- Project impact
assessment report
- Annual reports of
MNRE
Processes and operations in different

units within a sector are similar.
State-level data for identified sectors
is available.
Cooperation is received from
manufacturers of 3 other CSH
technologies, which are commercially
introduced in India.
Demonstration and replication
projects happen as scheduled and
information is available.
Cooperation is received from CSH
users in selected sectors.
- Reports available
on Performance
assessment of
existing
installations
- Reports available
on technology
assessment of
CSH technologies
- Availability of report
on market
assessment for
solar process heat
52
Strategy

Indicator
Baseline
Means of Gauging
Success
Target
applications
Outcome 1.2:
Adoption of
standards and
specifications for
guidance of
manufacturers and
users for assurance
of CSH quality,
safety, and
performance
Output 1.2.1:
Developed CSH
performance
standards and
technology
specifications
Number of CSH technology application

information packages developed by EOP
10
No. of Indian CSH system components &

equipment manufacturers that comply with the
BIS standards and specifications by EOP
No. of Indian CSH system component &
equipment manufacturers that comply with ISO
standards and specifications for CSH systems
by EOP
equipment manufacturers that entered into the
internal CSH business (export of CSH
components & equipment) by EOP
A document of performance measurement
standard developed by year 2
30
10
Number of test protocols developed

technology specific by year 3
No. of minimum performance norms developed

by year 2
A document of field performance monitoring

guidelines developed by year 2
No. of technology specifications developed by

EOP
No. of performance standards and

specifications taken up for consideration and
adoption as draft national standards by BIS by
year 4
- Project impact
assessment report
- Annual reports of
MNRE
- Technology and
market assessment
the EOP
- Project impact
assessment report
- Annual reports of
MNRE
Cooperation (sharing of information,

accessibility for discussions) is
received from manufacturers of all 5
CSH technologies.
Cooperation is received from users
and other stakeholders.
MNRE takes the lead in coordinating
the activity with BIS.
BIS takes a lead in pursuing the issue
of ISO standards for CSH with ISO.
- A report on
performance
measurement
standard available
- A report on number
of test protocols
available
- A report on
performance norms
available
- A report on field
performance
monitoring
guidelines available
of technology
specifications
available
- Confirmation from
BIS regarding
submission
- Standards issued
as BIS standards
53
Strategy

Indicator
No. of performance standards and
specifications submitted to ISO as draft
international standards by year 4
Outcome 1.3:
Adequately capable
and operational
testing laboratories
for verification of
manufacturer claims
and guidance of CSH
users to enable
informed decisions
Output 1.3.1:
Developed CSH
system components
and equipment
testing facilities
Baseline
0
Means of Gauging
Success
Target
1
No. of accredited testing facilities for CSH

components and equipment in India by year 3
equipment manufacturers that approached
testing laboratories for certification by EOP
No. of international CSH system component &
equipment manufacturers that approached
Indian testing laboratories for certification to
enable their systems sale in Indian market by
EOP
Number of reports on proof-of-concept testing
carried out at SEC for at least three
technologies by year 4
28
Established national testing facility by year 2
Established a regional test facility by year 3
18
30
0
0
60
10
- Confirmation from
ISO regarding
submission
- Standards issued
as ISO standards
- Certification by a
certifying
/accrediting
agency
- Project impact
assessment report
- Test reports
produced by testing
facilities
Manufacturers submit their products

for testing.
No turnover of the personnel involved
in the proof-of-concept and testing
laboratories.
Decisions are taken as scheduled for
the establishment of test facilities.
- Number of reports
available on proofof-concept testing
carried out at SEC
- A policy decision by
respective
ministry/SEC
- Number of test
reports by national
testing facility
respective
ministry/SEC
- Number of test
reports by regional
testing facility

Outcome 2.1:
Strengthened
technical capacity
and awareness of
stakeholders of CSH
systems for
industrial/
institutional process
heat applications

available to market CSH technologies in India
by EOP
No. of CSH replication projects by EOP
No. of trained participants of test facilities that
are actively involved in the development of the
CSH technology development by EOP
No. of CSH technologies available in India by
- Technology and
market assessment
the EOP
- Project impact
assessment report
- Annual reports of
MNRE
- Survey conducted
54
Strategy
Baseline
1
Means of Gauging
Success
Target
3
15
70
No. of training modules (including all the

training material) on CSH technologies
developed by year 2
Number of training courses on CSH

technologies organized and conducted under
the project by EOP
15
Number of personnel trained in the training

courses by EOP
300
No. of personnel that were received training on

specific aspects of CSH technologies from
study tour conducted under the project by year
2
10
Output 2.1.1: Trained

manufacturers/
vendors, installers
and CSH users
Indicator
EOP due to increased awareness and capacity
No. of banks/financial institutions that agreed
to finance CSH projects and CSH system
component & equipment manufacturing as a
result of the awareness enhancement
programs by EOP
No. of papers presented in conference that
were used by policy makers in decision making
on technology applications, in general, and
CSH technology applications, in particular, by
year 4
% of conference participants expressed
satisfaction about the conference by EOP
Training needs assessment completed by year
2
during conference
- Post conference
report and analysis
produced by
organizers of
conference
- Report on Training
needs assessment
available
- Three types of
training modules
are produced one
each for
manufacturers/
vendors, installers
and CSH users
- Completion/posttraining reports of
training
programmes
- After-training
evaluations
completed by
participants
- Completion/posttraining report of
study tour
- After-training
evaluation
completed by
participants

received from manufacturers,
vendors, users and other
stakeholders in identifying training
needs.
Targeted stakeholders, including
energy efficiency / renewable energy
consultants and other stakeholders,
show willingness for training and
trigger positive response from training
programmes.
Industry will grow; hence there will be
a demand for training.
Arrangements are successfully made
with international organisations and
installations for visits and discussions.
Senior officials directly working in
CSH area are nominated and
accepted for the study tour.
Targeted stakeholders show
willingness to participate in study tour
and part fund their costs.
55
Strategy
Output 2.1.2: More
trained technical
consultants that
provide technical
services to both CSH
system components
& equipment
manufacturers and
users
Output 2.1.3:
Established and
supported industryacademic partnership
through research
programmes to build
future capacities

staff at SEC and staff
at regional testing
centre
Output 2.1.5:
Completed awareness

Indicator
No. of training modules (including all the
training material) on CSH technologies
developed by year 2
Baseline
0
Means of Gauging
Success
Target
1
Number of training courses on CSH

technologies organized and conducted under
the project by EOP
Number of trained technical consultants by

EOP
100
Number of Ph.D. fellowships supported by year

3
Number of M.Tech. fellowships supported by
year 3
Number of fellows completing Ph.D. by EOP
Number of fellows completing M.Tech. by EOP
0
0
2
6
Number of institutions where fellowships on

CSH technologies are supported by year 3
No. of universities/technical schools with
Masters level course (at least as elective)
available on CSH by year 3
Number of personnel trained in international

training programmes organized and conducted
by year 2
Number of national training programmes
organized and conducted by year 2
Number of personnel trained in national
training programmes by year 2
10
Number of conferences organized and held by

year 4
- Training
programme
calendar and
structure
- Training modules
are completed and
available
- Completion reports
for training
programmes
- After-training
evaluations
completed by
participants
- Project impact
assessment report
- Annual reports of
MNRE
- Reports published
by respective
institutions of (a)
no. of fellowships
awarded (b) no. of
fellows receiving
degrees (c) no. of
fellows sponsored
by CSH industry,
(d) no. of fellows
absorbed in CSH
industry
- Completion report
of training
programme
- After-training
evaluations
completed by
participants
- Conference
brochures,
Suitable candidates will be interested

in research fellowships.
Faculty will be interested in research
in CSH area.
Sufficient research areas/ topics are
identified by CSH industry.
Trained and qualified personnel are

retained in the test centres.
Suitable international organisation(s)
to conduct and host such training are
available and willing to participate.
Testing facilities at SEC are installed
and operational to conduct and host
such training.
CSH manufacturers, users,
researchers, policy makers and other
56
Strategy
enhancement
programmes for
policy makers,
academicians,
industries, financial
institutions, etc. to
facilitate replications

Indicator
Number of participants in conferences by year
4
Number of international participants in the
completed conferences by year 4
Number of papers presented in conferences by
year 4
Number of CSH system exhibitors in expos
organized and held by year 4
Baseline
0
Target
200
20
20
20
Means of Gauging
Success
Output 2.1.6:
Completed
promotional
campaign for CSH
Output 2.1.7:
Established
Number of awareness programmes organized

and conducted by EOP
Number of participants in organized and
conducted awareness programmes by EOP
20
1,600
Number of advertisements about CSH placed

on print media under the project by year 3
Number of industrial clusters in which

hoardings are displayed by year 3
10
Number of industrial exhibitions and trade fairs

participated to promote CSH systems and CSH
technology applications by EOP
An officially established CSH Technology

Platform by year 1
01 Jan 12
agendas,
completion reports
Number of
registered
participants
Number of
registered
international
participants
Number of
abstracts /
conference
presentations /
conference papers
/ posters submitted/
presented
Number of
registered
exhibitors
Completion reports
for awareness
programmes
Post-programme
evaluations
completed by
participants
Advertising agency
records
Project impact
assessment report
Annual reports of
MNRE
Visit reports shared
by manufacturers
/suppliers
- Platform charter
document
stakeholders will be interested and
willing to share their experiences and
work, learn from that of others, and
initiate interactions of commercial
nature.
Targeted stakeholders show

willingness to examine and consider
CSH options.
Provided equitable role for different

stakeholder irrespective of their scale
57
Strategy
Concentrating Solar
Heat Technology
Platform and is
operational
Outcome 2.2: CSH

Project deliverables
facilitated and/or
influenced the
widespread
replication of CSH
technology
Output 2.2.1:
Documentations on
the Project outputs,
case studies, best
practices and lessons
learnt disseminated
to ensure larger
replication

Indicator
Number of meetings conducted by the CSH
Technology Platform by EOP
No. of CSH system users that make use of the
platform in addressing issues/problems
concerning energy performance and
improvements of CSH systems by EOP
No. of CSH system
manufacturers/suppliers/distributors that make
use of the platform in addressing
issues/problems concerning the market of CSH
products by EOP
% of newsletter recipients expressed it is
useful by EOP
% of users of the audio-visual capsule that are
satisfied with it, and find it useful by EOP
% of users satisfied with compendium and find
it useful by EOP
Cumulative number of newsletter issues

prepared and disseminated by EOP
No. of copies of each newsletter issue
circulated to CSH stakeholders (CSH system
manufacturers, suppliers, importers, installers,
maintenance service providers and
users)starting year 1
Audio-visual capsule uploaded and accessible
from project website by year 3
No. of users of the audio-visual capsule by the
EOP
Project website established and operational by
year 1
No. of CSH stakeholders that use the project
website for information each year starting year
1
No. of brochures on CSH technology
applications produced and disseminated by
EOP
No. of copies of printed and disseminated
Baseline
0
Means of Gauging
Success
Target
8
100
15
0
0
60
80
70
70
18
200
01 Jan 14
1,000
01 Jan 12
2,000
90
1,000
- Number of
members and their
distribution (by type
of stakeholder,
region etc.)
- Number of
meetings held
and area of operation.

Stakeholders will come together to
form CSH Platform to further
development and growth of CSH
industry.
- Project impact
assessment report
- Annual reports of
MNRE
- Web based
feedback for audiovisual capsule
- Survey of recipients
of the published
compendium
- Number of people
visiting website
(click count)
- All the information
including audio
visual capsule of
project is available
on the web and
downloadable
- Hard and soft copy
of the brochure
booklet available
- Project impact
assessment report
Captured all the information, updated

knowledge and documented the
results.
The web portal is created and
operational.
58
Strategy
Indicator
Baseline
33
compendium by EOP
Means of Gauging
Success
Target
Outcome 3.1:
Increased number of
commercial and nearcommercial CSH
technologies for
diversity of
applications
Output 3.1.1:
Completed feasibility
studies for
demonstration and
replication projects of
various CSH
technology
applications
Output 3.1.2:
Completed Detailed
Project Reports
(DPRs) for
demonstration
projects
Output 3.1.3:
Developed and
commissioned
demonstration
projects in at least 5
sectors
No. of replication CSH technology application

projects based on the demonstrations that are
planned and implemented by EOP
Number of technology application information
packages applied in demonstration and
replication projects by EOP
60
Number of completed feasibility studies that

were supported by the project by year 4
90
- Feasibility study
reports for
supported projects
Number of completed DPRs for

demonstrations that were funded and
implemented under the project by year 4
30
- Detailed project
reports for
supported projects

demonstration projects implemented and
commissioned by EOP
No. of CSH technology application demo
projects that were operational by EOP
30
30
- Project
commissioning
reports and all
other required
documents for
demonstration
projects
Output 3.1.4: Results

of the performance
monitoring, analysis,
and evaluation of
demonstration
projects
Cumulative number of performance monitoring

reports of the demonstration projects prepared
by EOP
No. of implemented CSH technology
application demo projects whose operational
and energy performances are at least the
30
15
33
- Feasibility study
reports of projects
- Project impact
assessment report
- Annual reports of
MNRE
Potential users having interest in
examining CSH viability in their
applications respond and eliminated
users with only marginal or passing
interest.
All the feasibility studies get converted
into serious prospective projects.
After the project is commissioned,

demonstration project participant
comply fully with the stipulated terms
and conditions.
Users will be attracted by the support
to be provided for demonstration
projects.
- Performance
evaluation report is
available
A compendium is inclusive of all individual brochures/case studies (90 nos) each with 4-5 pages
59
Strategy

Indicator
same or better than as per design by EOP
No. of implemented CSH technology
application demo projects whose financial and
economic performances are at least the same
or better than as per design by EOP
Baseline
0
Target
15
Outcome 3.2:
Improved technical
and economic
performance of
technologies in an
increased diversity of
applications
Output 3.2.1:
Documentation of
results of
demonstration and

projects planned and implemented by EOP
No. of demonstrated CSH technologies
replicated by EOP
No. of companies where CSH technologies
are successfully applied by EOP
No. of implemented demo and replication
projects whose performance data is as per
feasibility study by EOP
No. of CSH technology projects included in the
project database by EOP
Number of demonstration project profiles
prepared by EOP
60
90
90
90
Outcome 4.1:
Enhanced
understanding of the
financial viability of
CSH technologies
and measures to
mitigate investment
No. of potential and feasible financial options

for the application of CSH technologies
identified and promoted by EOP
No. of replication projects that use financial
options by EOP
to finance CSH projects by EOP
30
Means of Gauging
Success
- Feasibility study
reports of projects
- Project impact
assessment report
- Annual reports of
MNRE
- Number of projects
information
included in
0
30
database
- Number of case
study reports
available
Output 3.2.2:
0
90 - Annual reports on
No. of performance monitoring reports of demo
Completed
Performance
and replication projects completed by EOP
performance
monitoring of
monitoring, analysis
and overall evaluation
available
for demo and
0
2 - Overall evaluation
Overall evaluations of demonstration and
reports on
replication projects completed by EOP
demonstration and
available
Component 4: Sustainable financial approach in the adoption of CSH technologies and applications in India
The demonstration and replication

projects are implemented as
scheduled and operational.
The chosen units, both demo and
replication projects, comply with
agreement that includes making data
available and permission to publish
the data.
Demonstration and replication project
participants allow access for onsite
monitoring and evaluation.
- Project impact
assessment report
- Annual reports of
MNRE
- A report on
analysis of financial
viability of CSH
60
Strategy

Indicator
Baseline
Means of Gauging
Success
Target
risks
Output 4.1.1:
Documented financial
viability of CSH
technologies,
applications, and
mitigation
approaches of
investment risks
Outcome 4.2
Promulgation of
favourable financial
policies that promote
increased use and
promotion of CSH for
low and medium
temperature process
heat applications
Output 4.2.1
Formulated
recommendations for
financial and
promotional policies
and strategies for
adoption by
Government of India
No. of completed financial viability analyses of

CSH technologies and applications by year 3
Analysis of alternative financial options by year

3
No. of implemented CSH projects that

benefitted from the enforced policy and
regulatory regimes on CSH technology
applications by EOP
to finance CSH projects by EOP
28
No. of policy studies completed for inputs in

the formulation of policies supportive of CSH
system and application projects by year 3
technologies
available
- A report on
assessment of
alternative finance
models available
- A report on
assessment and
recommendations
for policies
available

received from users.
Transparency in information on
existing installations is provided by
users, manufacturers, MNRE.

received from stakeholders.
61
12. TOTAL BUDGET AND WORK PLAN
Annual Budget and Work Plan (ABWP)

Table 35: Project Annual Budget and Work Plan (ABWP)
Award ID:
61446
Project ID:
77828
Award Title:
Market Development and Promotion of Solar Concentrators based Process Heat Applications in India
Business Unit:
IND 10
Market Development and Promotion of Solar Concentrators based Process Heat Applications in India
Implementing Partner (Executing Agency):
GEF Outcome /
Atlas Activity
Outcome 1.1
Enhanced
understanding of
CSH
technologies,
applications and
markets
Outcome 1.2:
Adoption of
standards and
Responsible
Party
(Implementing
Agency)
UNDP
UNDP
Ministry of New and Renewable Energy, Government of India
Source
GEF
62000
GEF
62000
Budget
Code
ERP/ATLAS Budget
Description/Input
71200
71300
71600
72100
72200
72500
72600
72800
73100
73400
74200
74500
Sub-total
71200
71300
71600
International Consultants
Local Consultants
Travel
Subcontracts
Equipment and Furniture
Supplies
Grants
Info Tech Equipment
Rental and Main Premises
Rental and Main Equipment
Audio Visual and Printing
Miscellaneous
Local Consultants
Travel
Annual Expenses (USD)

Year 1
4,500
15,750
3,700
0
0
0
0
0
0
0
0
1,600
25,550
9,000
9,000
4,500
Year 2
13,500
84,750
16,700
0
0
0
0
0
0
0
22,500
4,800
142,250
18,000
42,938
13,400
Year 3
6,000
22,500
5,200
0
0
0
0
0
0
0
15,000
1,500
50,200
13,500
30,937
10,300
Year 4
0
22,500
3,400
0
0
0
0
0
0
0
15,000
1,200
42,100
6,000
8,438
3,300
Total
(USD)
Year 5
4,500
29,250
5,800
0
0
0
0
0
0
0
10,000
1,500
51,050
6,000
8,437
3,300
28,500
174,750
34,800
0
0
0
0
0
0
0
62,500
10,600
311,150
52,500
99,750
34,800
1
2
3
4
5
6
7
3
62
GEF Outcome /
Atlas Activity
Responsible
Party
(Implementing
Agency)
specifications for
guidance of
manufacturers
and users for
assurance of
CSH quality,
safety, and
performance
Outcome 1.3:
Adequately
capable and
operational
testing
laboratories for
verification of
manufacturer
claims and
guidance of
CSH users to
enable informed
decisions
Outcome 2.1:
Strengthened
technical
capacity and
awareness of
stakeholders of
CSH systems for
industrial/
institutional
UNDP
UNDP
Source
Budget
Code
ERP/ATLAS Budget
Description/Input
Year 1
72100
72200
72500
72600
72800
73100
73400
74200
74500
Sub-total
71200
71300
71600
72100
72200
72500
GEF
72600
62000
72800
73100
73400
74200
74500
Sub-total
Component 1 TOTAL
GEF
62000
71200
71300
71600
72100
72200
72500
72600
72800
Subcontracts
Supplies
Grants
Info Tech Equipment
Miscellaneous
Local Consultants
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Miscellaneous
Local Consultants
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Year 2
Year 3
Year 4
Total
(USD)
Year 5
0
5,000
0
0
0
0
0
0
1,100
28,600
0
4,875
750
0
0
0
0
0
0
0
0
300
5,925
0
15,000
0
0
0
0
0
0
4,300
93,638
0
27,000
4,050
0
130,000
0
0
0
0
0
0
10,600
171,650
0
10,000
0
0
0
0
0
0
2,600
67,337
0
27,000
4,050
0
5,000
0
0
0
0
0
0
2,800
38,850
0
0
0
0
0
0
0
0
600
18,338
0
27,000
4,050
0
5,000
0
0
0
0
0
0
2,800
38,850
0
0
0
0
0
0
0
0
600
18,337
0
27,000
4,050
0
5,000
0
0
0
0
0
0
2,800
38,850
0
30,000
0
0
0
0
0
0
9,200
226,250
0
112,875
16,950
0
145,000
0
0
0
0
0
0
19,300
294,125
60,075
0
0
2,500
24,000
0
0
24,000
0
407,538
72,000
60,000
85,100
112,600
0
0
38,400
0
156,387
0
0
2,500
124,000
0
0
24,000
0
99,288
0
0
2,500
129,000
0
0
0
0
108,237
0
0
2,500
59,000
0
0
0
0
831,525
72,000
60,000
95,100
448,600
0
0
86,400
0
9
3
10
11
12
13
14
63
GEF Outcome /
Atlas Activity
Responsible
Party
(Implementing
Agency)
Budget
Code
ERP/ATLAS Budget
Description/Input
73100
73400
74200
74500
Sub-total
71200
71300

Miscellaneous
71600
72100
72200
72500
GEF
72600
62000
72800
72600
73400
74200
74500
Sub-total
Component 2 TOTAL
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Grants
Miscellaneous
71200
71300
71600
72100
72200
72500
72600
72800
73100
73400
74200
74500
Local Consultants
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Miscellaneous
Source
Year 1
process heat
applications
Outcome 2.2:
CSH project
deliverables
facilitated and/or
influenced the
widespread
replication of
CSH technology
applications in
India
Outcome 3.1:
Increased
number of
commercial and
near-commercial
CSH
technologies for
diversity of
applications
UNDP
UNDP
GEF
62000
Local Consultants
Year 2
Year 3
Year 4
Total
(USD)
Year 5
0
0
11,500
0
62,000
0
0
0
0
11,500
13,785
393,385
0
0
0
0
11,500
13,407
175,407
0
0
0
0
11,500
13,407
156,407
0
0
0
0
11,500
0
73,000
0
0
0
0
57,500
40,600
860,200
0
0
0
35,000
0
0
0
0
0
0
24,000
0
59,000
0
35,000
0
0
0
0
0
0
26,980
0
61,980
0
55,000
0
0
0
0
0
0
34,000
0
89,000
0
55,000
0
0
0
0
0
0
34,000
0
89,000
0
55,000
0
0
0
0
0
0
34,000
0
89,000
0
235,000
0
0
0
0
0
0
152,980
0
387,980
121,000
0
21,105
3,200
0
0
0
20,000
0
0
0
0
0
455,365
13,500
96,876
14,700
0
0
0
260,000
0
0
0
0
0
264,407
9,000
100,260
19,000
0
0
0
320,000
0
0
0
0
300
245,407
0
96,876
17,200
0
0
0
340,000
0
0
0
0
0
162,000
0
42,888
6,500
0
0
0
80,000
0
0
0
0
400
1,248,180
22,500
358,005
60,600
0
0
0
1,020,000
0
0
0
0
700
15
16
17
18
3
19
64
GEF Outcome /
Atlas Activity
Outcome 3.2:
Improved
technical and
economic
performance of
commercial and
near-commercial
CSH
technologies in
an increased
diversity of
applications
Outcome 4.1:
Enhanced
understanding of
the financial
viability of CSH
technologies
and measures to
mitigate
investment risks
Outcome 4.2:
Promulgation of
favourable
financial policies
Responsible
Party
(Implementing
Agency)
UNDP
UNDP
UNDP
Source
Budget
Code
Sub-total
71200
71300
71600
72100
72200
72500
GEF
62000
72600
72800
73100
73400
74200
74500
Sub-total
Component 3 TOTAL
GEF
62000
GEF
62000
71200
71300
71600
72100
72200
72500
72600
72800
73100
73400
74200
74500
Sub-total
71200
71300
71600
72100
ERP/ATLAS Budget
Description/Input
Local Consultants
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Miscellaneous
Local Consultants
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Miscellaneous
Local Consultants
Travel
Subcontracts
Total
(USD)
Year 1
44,305
0
16,848
2,400
0
0
0
36,000
0
0
0
0
0
55,248
Year 2
385,076
0
16,848
2,400
0
0
0
48,000
0
0
0
0
0
67,248
Year 3
448,560
0
25,848
3,800
0
0
0
60,000
0
0
0
0
300
89,948
Year 4
454,076
9,000
25,848
6,500
0
0
0
72,000
0
0
0
0
300
113,648
Year 5
129,788
9,000
21,348
5,800
0
0
0
144,000
0
0
0
0
200
180,348
1,461,805
18,000
106,740
20,900
0
0
0
360,000
0
0
0
0
800
506,440
99,553
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
452,324
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
538,508
12,000
36,000
9,000
0
0
0
0
0
0
0
0
1,700
58,700
18,000
18,000
8,100
0
567,724
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
310,136
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,968,245
12,000
36,000
9,000
0
0
0
0
0
0
0
0
1,700
58,700
18,000
18,000
8,100
0
20
21
3
5
22
23
3
65
GEF Outcome /
Atlas Activity
Responsible
Party
(Implementing
Agency)
that promote
increased use
and promotion of
CSH
technologies for
low and medium
temperature
process heat
applications
Source
Budget
Code
Year 1
72200
72500
72600
72800
73100
73400
74200
74500
Sub-total
Component 4 TOTAL

Supplies
Grants
Info Tech Equipment
Miscellaneous
71200
71300
Local Consultants
Local Consultants
(Contractual ServicesIndividual
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Professional Services Audits
Miscellaneous
71400
Component 5
Project
management
GEF
62000
UNDP
ERP/ATLAS Budget
Description/Input
71600
72100
72200
72500
72600
72800
73100
73400
74100
74200
74500
Sub-total
Component 5 TOTAL
TOTAL
Year 2
Year 3
Total
(USD)
Year 4
Year 5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,300
45,400
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,300
45,400
0
0
0
0
0
0
104,100
15,000
4,500
0
0
0
0
15,000
4,500
104,100
30,000
9,000
23,400
23,400
23,400
23,400
23,400
117,000
24
5,850
0
0
2,250
0
0
0
0
5,850
0
0
2,250
0
0
0
0
8,450
0
0
2,250
0
0
0
0
5,850
0
0
2,250
0
0
0
0
8,450
0
0
2,250
0
0
0
0
34,450
0
0
11,250
0
0
0
0
3,000
3,000
3,000
3,000
3,000
15,000
25
1,000
5,250
40,750
1,000
5,250
40,750
1,000
5,250
62,850
1,000
5,250
40,750
1,000
5,250
62,850
5,000
26,250
247,950
40,750
321,378
40,750
1,355,977
62,850
1,126,252
40,750
953,169
62,850
643,223
247,950
4,400,000
66
General notes to the budget:

-International consultants are budgeted at $ 3,000 per week, short- term senior national consultants at $ 750 per week, and short-term junior national consultants at $ 375 per week
-The cost of workshops has been divided in various budget lines as per UNDP ATLAS budget which does not have a separate budget line for training / workshops. For example, budget
line 'international consultant' will have a % allocation for international experts to support workshops. The number of workshops for each output is given in the 'results framework'. A
workshop will cost about USD 2,500 per day
Specific notes (the numbers correspond to the last column of Table 35):
1. 9.5 person/weeks of international expertise to support technology assessment, and development of technology application information packages
2. 233 person/weeks of local short-term consultancy for technology assessment, market assessment, and development of technology application packages
3. Travel cost (DSA and ticket) is budgeted at 30% of international consultants fee and 15% of national consultants fee as a general rule-of thumb
4. Printing and reproduction cost of reports and technology application packages
5. Miscellaneous is for unforeseen expenses that are difficult to anticipate
6. 17.5 person/weeks of international expertise to support development of performance measurement standard and test protocols and minimum performance norms for
solar concentrator technologies for CSH applications, and initiation of process for adoption as international standards by ISO
7. 133 person/weeks of local short-term consultancy for development of performance measurement standard and test protocols and minimum performance norms for solar
concentrator technologies for CSH applications, development of field performance monitoring guidelines for end-use applications, development of specifications for
materials/ components/ systems of solar concentrator technologies for CSH applications, and initiation of process for adoption as national standards by BIS
8. Equipment for testing work related to development of standards and test protocols
9. 150.5 person/weeks of local short-term consultancy for staff for testing at national test facility and regional test facility
10. Equipment for proof-of-concept testing of new technologies at SEC, and for testing at national test facility and regional test facility
11. 24 person/weeks of international expertise for conduct of international training programme on testing. Training needs assessment and development of training module
12. 80 person/weeks of local short-term consultancy for training needs assessment for capacity development of solar concentrator technology manufacturers/ vendors and
CSH users; development of training programme structure and material for capacity development of solar concentrator technology manufacturers/ vendors and CSH users,
and for capacity development of technical consultants
13. Also includes travel cost for study tour, international training programme on testing
14. Subcontracts for conduct of training programmes for manufacturers, vendors, users; training programmes for technical consultants; awareness programmes; project
website; preparation of quarterly project newsletter; preparation of project brochures and project results
15. Printing and reproduction cost of quarterly project newsletters, project brochures, project results
16. Amounts for award of M.Tech. and Ph.D. fellowships; international CSH conference and expo; advertisements in industrial magazines, hoardings in industrial clusters,
participation in industrial exhibitions and trade fairs; CSH technology platform formation and facilitation
17. 13.5 person/weeks of international expertise to support planning and operationalising of demonstration projects
18. 620 person/weeks of local short-term consultancy for planning and operationalising of demonstration projects; evaluation of demonstration projects; preparation of case
studies etc.
19. Support to demonstration projects and replication projects
20. 4 person/weeks of international consultancy for analysis of financial viability of solar concentrator technologies and comparative evaluation with alternative or competing
solutions such as biomass energy or energy efficiency; assessment of alternative business models for mitigation of investment risks
21. 48 person/weeks of local short-term consultancy for analysis of financial viability of solar concentrator technologies and comparative evaluation with alternative or
competing solutions such as biomass energy or energy efficiency; assessment of alternative business models for mitigation of investment risks
22. 6 person/weeks of international consultancy for assessment and recommendations for policies on financial incentives, schemes and mechanisms
67
23. 24 person/weeks of local short-term consultancy for assessment and recommendations for policies on financial incentives, schemes and mechanisms
24. 168 person/weeks of local consultancy for Project management
25. Professional services for annual financial auditing
68
Table 36a: Summary of Funds (GEF and co-financing)
Donor
GEF
MNRE
Others - industries and
financial institutions
Total
Year 1
Year 2
Year 3
Year 4
Year 5
Total
321,378
578,450
1,355,977
1,390,761
1,126,252
1,480,405
953,169
1,858,806
643,233
2,041,579
4,400,000
7,350,000
800,000
1,866,667
2,400,000
3,200,000
3,733,333
12,000,000
1,699,828
4,613,405
5,006,657
6,011,975
6,418,135
23,750,000
Table 36b: Budget per component
Category (units are in USD)

Local Consultants
Local Consultants (Contractual
Services-Individual
Travel
Subcontracts
Supplies
Grants
Info Tech Equipment
Professional Services - Audits
Miscellaneous
Total
USD
253,500
1,306,120
76,250
294,700
683,600
175,000
0
1,374,400
0
0
0
0
72,980
163,450
4,400,000
1
81,000
387,375
0
2
72,000
0
0
86,550
95,100
683,600
346,400
10,480
40,600
1,248,180
175,000
0
62,500
39,100
831,525
Components
3
40,500
864,745
0
4
30,000
54,000
0
5
30,000
0
76,250
81,500
17,100
14,450
904,000
77,500
1,968,245
0
3,000
104,100
0
0
124,000
0
0
0
3,250
247,950
69
Table 37: GEF budget and co-financing (in USD)
Outcome
Total
GEF
MNRE
Others
Outcome 1.1 Enhanced understanding of CSH technologies,

applications and markets
366,150
311,150
55,000
Outcome 1.2: Adoption of standards and specifications for guidance

of manufacturers and users for assurance of CSH quality, safety,
and performance
312,500
226,250
86,250
Outcome 1.3: Adequately capable and operational testing

laboratories for verification of manufacturer claims and guidance of
CSH users to enable informed decisions
668,950
294,125
374,825
1,214,600
860,200
354,400
387,980
387,980
7,461,805
1,461,805
2,000,000
4,000,000
12,506,440
506,440
4,000,000
8,000,000
Outcome 4.1: Enhanced understanding of the financial viability of

CSH technologies and measures to mitigate investment risks
58,700
58,700
Outcome 4.2: Promulgation of favourable financial policies that

promote increased use and promotion of CSH technologies for low
and medium temperature process heat applications
45,400
45,400
727,475
247,950
479,525
Outcome 2.1: Strengthened technical capacity and awareness of

stakeholders of CSH systems for industrial/ institutional process heat
applications
Outcome 2.2: CSH project deliverables facilitated and/or influenced
the widespread replication of CSH technology applications in India
Outcome 3.1: Increased number of commercial and nearcommercial CSH technologies for diversity of applications
Outcome 3.2: Improved technical and economic performance of
commercial and near-commercial CSH technologies in an increased
diversity of applications
Component 5 Project management

Project Total (USD)
23,750,000
4,400,000
7,350,000
12,000,000
70
13.
MANAGEMENT ARRANGEMENTS
Project Organization Structure

118.
The project is co-financed with funding from the GEF and UNDP acts as the GEF
Executing Agency. The project will be implemented by MNRE, who will assume the overall
responsibility for the achievement of project results as the Implementing Partner (GEF Local
Executing Agency). UNDP will provide overall management and guidance from its New Delhi Country
Office and the Asia Pacific Regional Centre (APRC) in Bangkok, and will be responsible for monitoring
and evaluation of the project as per normal GEF and UNDP requirements. MNRE will designate a
senior official as the National Project Director (NPD) for the project. The NPD will be responsible for
overall guidance to project management, including adherence to the Annual Work Plan (AWP) and
achievement of planned results as outlined in the ProDoc, and for the use of UNDP funds through
effective management and well established project review and oversight mechanisms. The NPD also
will ensure coordination with various ministries and agencies provide guidance to the project team to
coordinate with UNDP, review reports and look after administrative arrangements as required by the
Government of India and UNDP.
119.
A Project Management unit (PMU) shall be established to implement the project. The
structure of the PMU is given in Figure 7. The PMU shall be headed by a full-time National Project
Manager (NPM) and will be responsible for implementing day-to-day activities in coordination with the
National Project Director (NPD). If required, the Ministry may appoint a senior officer as National
Project Coordinator (NPC), who can focus on key functions of internal liaising of the activities with
NPD, administrative requirements, policy linkages, linkages with ministry programmes. Efforts shall be
made to mobilise the project team for the full project tenure to ensure the availability of experts and
consultants until the end of the project. The NPM will be supported by two Project Officers. As
needed, technical experts from different disciplines and project management consultants with
expertise in project, finance, legal matters, etc. will be recruited on a longer-term or short-term time
basis depending upon the work load. The job description and Terms of Reference (ToRs) for the PMU
positions and assignments are enclosed in Annex C. The appointment of project staff needs to be in
consultation with UNDP (especially those funded by GEF project)
120.
It is proposed that SEC will be responsible for executing activities under output 1.3.1
(Development of Testing facilities). The PMU will hire two/three agencies to act as Component
Managers (either an agency/institution or consortium) for executing component 3 (Planning and
operationalising demonstration and replication projects). Each Component Manager would put in
place a team of one senior and two junior professionals. The Terms of Reference (ToR) of the
Component Managers and SEC are provided in Annex C.
121.
The Project Steering Committee (PSC) is responsible for making management decisions.
The PSC plays a critical role in project monitoring and evaluation by quality assuring these processes
and products, and using evaluations for performance improvement, accountability and learning. It
ensures that required resources are committed and arbitrates on any conflicts within the project or
negotiates a solution to any problems with external bodies. MNRE will sign the budgeted AWP with
UNDP on an annual basis, as per UNDP rules and regulations. PSC will approve/ratify the AWP.
Based on the approved AWP, the PSC will consider and approve the quarterly plans and also approve
any essential deviations from the original plans. The PSC will be chaired by Senior Officer from MNRE
(who is equal to or higher than NPD level officer). The PSC members will include the following;
MNRE, MoEF (GEF OFP), representative from UNDP, DEA and other members (expert from
Academia, Industry Association, IREDA, etc.) as invitees as and when needed.
122.
The Project Advisory Committee (PAC) will be composed of MNRE, Ministry of
Environment and Forests (MoEF), Industry association/ member from proposed platform, member
71
from Ministry of Small and Mirco Enterprises, BIS, BEE, and UNDP. Other members (e.g. Director
General of Boiler Control, IREDA, NABARD, research institutes, industry associations, etc.) can be
invited by the decision of the PAC on an as needed basis, however, taking care that the PAC remains
small enough to be effective.
Project Management Board
UNDP
Implementing
partner
(MNRE)
Dept of
Economic
Affairs (DEA)
Project Advisory Committee (PAC)

Chaired by: MNRE
Members:
o Govt Agencies (MoEF, DEA, BEE, BIS, MSME)
o Others: Donors, Invitee etc.
o Technical experts
o CSH Industry: Industry association/ member
from proposed platform
Project Steering Committee (PSC)
National
Project
Director (NPD)
Chaired by: MNRE

Members: MoEF (GEF OFP office),
UNDP, DEA, other invitees (as and when
needed)

National Project
Manager (NPM)
Project Manager
(Awareness &
dissemination)
2 nos of Component
Managers
(Component 3)
Solar Energy
Centre (Output
1.3.1)
Project Manager
(Admin &
Accounts)
Figure 7: Project management structure
72
General
UNDP support service
123.
MNRE may enter into an agreement with UNDP for support services in the form of
procurement of goods and services during the project implementation process. In such a case,
appropriate cost recovery will be charged as per UNDP rules and regulations. The support services
will be outlined in the form of Letter of Agreement signed between MNRE and UNDP.
Collaborative arrangements with related projects
124. The proposed project was approved by DEA under the CPAP Framework Programme of
Supporting National Development Objectives with Co-Benefits of Mitigating Climate Change with the
following specific outputs:
a) Energy efficiency improvements in selected energy-intensive sectors
b) Framework developed for inclusive planning and delivery of clean energy services
c) Strategic partnerships to leverage environmental financing
d) Knowledge sharing and inputs provided for environmental and climate policy regimes
125. Thus the project Market Development and Promotion of Solar Concentrator based
Process Heat Applications in India (India CSH) was approved during the CPAP 2008-2012 under
the specific output b) above.
126. The proposed project will establish the necessary communication and coordination mechanisms
34
through its PMU and PSC with the Project Management Board to ensure proper coordination
between the various projects there under. UNDP India will also take the lead in ensuring adequate
coordination and exchange of experiences. In addition, the project will seek to coordinate its actions
with other UNDP energy and climate change activities in India. Similarities in the strategy of the
proposed project may extend an opportunity to share lessons and exploit synergies, in particular in the
areas of harmonization and mutual recognition. Also, the proposed project will also seek to coordinate
actions with other existing government commitments and non-government initiatives.
127. MNRE will ensure that the activities on CSH are properly coordinated with the other activities
which MNRE is undertaking or promoting, such as CSP for power generation, JNNSM programme, as
well as linking with incentive programs of MNRE.
128. MNRE will ensure co-finance and cooperation from programs implemented by other agencies;
MNRE provides approximately one third of the project cost of CSH
Industry provides an equity of one third
Industry leverages loan from Financing Institutions to an extent of one third. IREDA, a
financing institution closely associated with MNRE and their programme will also support
financing CSH project.
Table 38a: Details of total of co-financing share between MNRE, Industries and IREDA
Particulars
The current benchmark cost for solar concentrator systems in
India (irrespective of available technology [among two
2
technologies] and application), US$/m
34
Quantity
400-450
Implementing Partners are Ministry of Environment and Forests (MoEF), Ministry of New and Renewable Energy (MNRE),
Ministry of Power (MoP), Bureau of Energy Efficiency (BEE) and state governments and is co-chaired by UNDP and
Department of Economic Affairs (DEA)
73
Assumed uniform cost for both demonstration and replication

2
projects, US$/m
Average size of each demonstration and replication project,
2
m
Each demonstration & replication project is assumed to have
an investment cost of, US$
2
Total area targeted under the project (30,000 m replication +
2
2
15000 m demonstration), m
The total investment cost required for demonstrations and
replications, US$
The share of total investment required:
400
500
200,000
45,000
18,000,000
MNRE subsidy, US$
6,000,000
Equity from industry, US$
6,000,000
Loan from IREDA, US$
6,000,000
Prior obligations and prerequisites

129.
No prior obligations or prerequisites have been identified
Audit Clause
130.
The project will be audited according to UNDP Financial Rules and Regulations and
applicable audit policies.
Agreement on the intellectual property rights and use of logo on the projects deliverables
131.
In order to accord proper acknowledgement to GEF for providing funding, a GEF logo
should appear on all relevant GEF-supported project publications, including among others, project
hardware, if any, purchased with GEF funds. Any citation on publications regarding projects funded by
GEF should also accord proper acknowledgement to GEF. Alongside GEF and UNDP logo, MNRE
logo may also feature as the Implementing Partner of the proposed project.
Communications and visibility requirements:
132.
Full compliance is required with UNDPs Branding Guidelines. These can be accessed at
http://intra.undp.org/coa/branding.shtml, and specific guidelines on UNDP logo use can be accessed
at: http://intra.undp.org/branding/useOfLogo.html. Amongst other things, these guidelines describe
when and how the UNDP logo needs to be used, as well as how the logos of donors to UNDP projects
needs to be used. For the avoidance of any doubt, when logo use is required, the UNDP logo needs
to be used alongside the GEF logo. The GEF logo can be accessed at:
http://www.thegef.org/gef/GEF_logo. The UNDP logo can be accessed at
http://intra.undp.org/coa/branding.shtml.
133.
Full compliance is also required with the GEFs Communication and Visibility Guidelines
(the GEF Guidelines). The GEF Guidelines can be accessed at:
http://www.thegef.org/gef/sites/thegef.org/files/documents/C.40.08_Branding_the_GEF%20final_0.pdf.
Amongst other things, the GEF Guidelines describe when and how the GEF logo needs to be used in
project publications, vehicles, supplies and other project equipment. The GEF Guidelines also
describe other GEF promotional requirements regarding press releases, press conferences, press
visits, visits by Government officials, productions and other promotional items.
134.
Where other agencies and project partners have provided support through co-financing,
their branding policies and requirements should be similarly applied.
74
14.
MONITORING FRAMEWORK AND EVALUATION
Project Start
135.
A Project Inception Workshop will be held within the first two months of project start with
attendance by those assigned roles in the project organization structure, UNDP country office (CO)
and where appropriate/feasible UNDP regional technical and program advisors as well as other
stakeholders. The Inception Workshop will be crucial to building ownership for the project results and
to plan the first year Annual Work Plan (AWP). The Inception Workshop will address a number of key
issues including:
Understanding objectives & other outputs and activities.
Assisting all partners to fully understand and take ownership of the project. Detail the roles,
support services and complementary responsibilities of UNDP CO and UNDP APRC staff
vis--vis the project team. Discuss the roles, functions, and responsibilities within the
project's decision-making structures, including reporting and communication lines, and
conflict resolution mechanisms. The Terms of Reference for project staff will be discussed
again as needed.
Based on the project results framework and the relevant GEF Tracking Tool, if appropriate,
finalize the first AWP. Review and agree on the indicators, targets and their means of
verification, and recheck assumptions and risks.
Provide a detailed overview of reporting, monitoring and evaluation (M&E) requirements.
The Monitoring and Evaluation work plan and budget should be agreed and scheduled.
Discuss financial reporting procedures and obligations, and arrangements for annual audit.
Plan and schedule Project Steering Committee (PSC) meetings. Roles and responsibilities
of all project organization structures should be clarified and meetings planned. The first PSC
meeting should be held within the first 12 months following the inception workshop.
136.
An Inception Workshop report is a key reference document and must be prepared and
shared with participants to formalize various agreements and plans decided during the meeting.
Quarterly Review
137.
Each quarterly review will consist of:
Progress achieved, monitored in the UNDP Enhanced Results Based Management Platform.
Based on the initial risk analysis submitted, the risk log shall be regularly updated in ATLAS.
Risks become critical when the impact and probability are high. Note that for UNDP GEF
projects, all financial risks associated with financial instruments such as revolving funds,
microfinance schemes, or capitalization of ESCOs are automatically classified as critical on
the basis of their innovative nature (high impact and uncertainty due to no previous
experience justifies classification as critical).
Based on the information recorded in Atlas, Project Progress Reports (PPR) can be
generated in the Executive Snapshot.
Other ATLAS logs can be used to monitor issues, lessons learned, etc. The use of these
functions is a key indicator in the UNDP Executive Balanced Scorecard.
Annual Review
138.
Annual Project Review/Project Implementation Reports (APR/PIR): These key reports are
prepared to monitor progress made since the project start and in particular for the previous reporting
period (30 June to 1 July). The APR/PIR combines both UNDP and GEF reporting requirements. The
APR/PIR includes, but is not limited to, reporting on the following:
75
Progress made towards project objective and project outcomes - each with indicators,
baseline data and end-of-project targets (cumulative);

Project outputs delivered per project outcome (annual);
Lesson learned/good practice;
AWP and other expenditure reports;
Risk and adaptive management;
ATLAS quarterly progress reports (QPR);
Portfolio level indicators (i.e. GEF focal area tracking tools) are used by most focal areas on
an annual basis as well.
Periodic Monitoring through site visits:

139.
The UNDP CO and the UNDP APRC will conduct visits to project sites based on the
agreed schedule in the project's Inception Report/AWP to assess first hand project progress. Other
members of the Project Steering Committee may also join these visits. A Field Visit Report/BTOR will
be prepared by the CO and UNDP APRC and will be circulated no later than one month after the visit
to the project team and Project Board members.
Mid-term of Project Cycle:

140.
The project will undergo an independent Mid-Term Evaluation (MTE) at the mid-point of
project implementation (2014). The Mid-Term Evaluation will determine progress being made toward
the achievement of outcomes and will identify course corrections if needed. The MTE will focus on the
effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring
decisions and actions; and will present initial lessons learned about project design, implementation
and management. The findings of this review will be incorporated as recommendations for enhanced
implementation during the final half of the projects term. The organization, terms of reference and
timing of the mid-term evaluation will be decided after consultation between the parties to the project
document. The Terms of Reference for this Mid-term evaluation will be prepared by the UNDP CO
based on guidance from the UNDP-APRC and UNDP-GEF. The management response and the
evaluation will be uploaded to UNDP corporate systems, in particular the UNDP Evaluation Office
Evaluation Resource Center (ERC).
141.
The relevant GEF Focal Area Tracking Tools will also be completed during the mid-term
evaluation cycle.
Table 38b: Elements and cost of monitoring and evaluation (M&E)

Type of M&E
activity
Inception
Workshop and
Report
Measurement of
Means of
Verification of
project results
(baseline and endof-project impact
study)
Responsible Parties
Implementing Partner
(National Project Director and
National Project Coordinator)
UNDP CO, UNDP GEF
UNDP GEF RTA/Project
Coordinator will oversee the
hiring of specific studies and
institutions, and delegate
responsibilities to relevant
team members.
Budget USD ($)

Excluding project team
staff time
Indicative cost: $ 20,000
Time frame
Within first two
months of project
start up
Start, mid and end of
project (during
evaluation cycle) and
annually when
required.
76
Type of M&E
activity
Measurement of
Means of
Verification for
Project Progress
on output and
implementation
ARR/PIR
Periodic status/
progress reports
Mid-term
Evaluation
Responsible Parties
Oversight by National Project

Coordinator
Project team
NPD, NPC and Project team

UNDP CO
UNDP RTA
UNDP EEG

UNDP CO
UNDP APRC
External Consultants (i.e.
evaluation team)
NPD, NPC and Project team,
UNDP CO
UNDP APRC
External Consultants (i.e.
evaluation team)
Project Coordinator and team
UNDP CO
local consultant
UNDP CO
UNDP CO
UNDP APRC (as appropriate)
Government representatives
Final Evaluation
Project Terminal
Report
Audit
Visits to field sites
Total Indicative Cost

Excluding project team staff time and UNDP staff and
travel expenses
Budget USD ($)

Excluding project team
staff time
(to be determined more
precisely) as part of the
Annual Work Plan's
preparation.
Already included in the
PMU cost
Time frame
Annually prior to
ARR/PIR and to the
definition of annual
work plans
Annually
Already included in the

PMU cost
Quarterly
At least three months

before the end of
project
implementation
None

before the end of the
project
Yearly
Indicative cost per year:

$ 3,000
paid from IA fees and
operational budget
At the mid-point of
project
implementation.
Yearly
US$ 200,000
(4.54% of Total Budget)
End of Project:
142.
An independent Final Evaluation will take place three months prior to the final Project
Board meeting and will be undertaken in accordance with UNDP and GEF guidance. The final
evaluation will focus on the delivery of the projects results as initially planned (and as corrected after
the mid-term evaluation, if any such correction took place). The final evaluation will look at impact and
sustainability of results, including the contribution to capacity development and the achievement of
global environmental benefits/goals. The Terms of Reference for this evaluation will be prepared by
the UNDP CO based on guidance from the UNDP-APRC and UNDP-GEF.
143.
The Terminal Evaluation should also provide recommendations for follow-up activities and
requires a management response which should be uploaded to PIMS and to the UNDP Evaluation
Office Evaluation Resource Center (ERC).
144.
The relevant GEF Focal Area Tracking Tools will also be completed during the final
evaluation.
145.
During the last three months, the project team will prepare the Project Terminal Report.
This comprehensive report will summarize the results achieved (objectives, outcomes, outputs),
lessons learned, problems met and areas where results may not have been achieved. It will also lay
out recommendations for any further steps that may need to be taken to ensure sustainability and
replicability of the projects results.
77
Learning and Knowledge Sharing

146.
Results from the project will be disseminated within and beyond the project intervention
zone through existing information sharing networks and forums.
147.
The project will identify and participate, as relevant and appropriate, in scientific, policybased and/or any other networks, which may be of benefit to project implementation though lessons
learned. The project will identify, analyse, and share lessons learned that might be beneficial in the
design and implementation of similar projects in future.
148.
Finally, there will be a two-way flow of information between this project and other projects
of a similar focus.
15.
LEGAL CONTEXT
149.
This document together with the CPAP signed by the Government and UNDP, which is
incorporated by reference, constitute together a Project Document as referred to in the Standard Basic
Assistance Agreement (SBAA) and all CPAP provisions apply to this document.
150.
Consistent with the Article III of the SBAA, the responsibility for the safety and security of
the implementing partner and its personnel and property, and of UNDPs property in the implementing
partners custody, rests with the implementing partner.
151.
a)
b)
The implementing partner shall:

Put in place an appropriate security plan and maintain the security plan, taking into account
the security situation in the country where the project is being carried;
Assume all risks and liabilities related to the implementing partners security, and the full
implementation of the security plan.
152.
UNDP reserves the right to verify whether such a plan is in place, and to suggest
modifications to the plan when necessary. Failure to maintain and implement an appropriate security
plan as required hereunder shall be deemed a breach of this agreement.
153.
The implementing partner agrees to undertake all reasonable efforts to ensure that none
of the UNDP funds received pursuant to the Project Document are used to provide support to
individuals or entities associated with terrorism and that the recipients of any amounts provided by
UNDP hereunder do not appear on the list maintained by the Security Council Committee established
pursuant to resolution 1267 (1999). This provision must be included in all sub-contracts or subagreements entered into under this Project Document. The list can be accessed via:
http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm.
78
PART C. ANNEXES
ANNEX A. RISK ANALYSIS
Table 39: Summary of Risk Log and counter measures
No.
Description
Date
Identified
Type
Impact and
Probability
(on a scale of
1 (low) to 5
(high))
Countermeasures/
Management Response
Owner
Submitted,
updated by
UNDP
UNDP CO
UNDP
UNDP CO
UNDP
UNDP CO
Lack of interest
from Indian
manufacturers of
solar concentrator
technologies.
30 April
2011
Lack of interest
from foreign
manufacturers of
solar concentrator
technologies
30 April
2011
Strategic
Probability = 2
Impact = 3
Lack of interest
from existing users.
30 April
2011
Strategic
Probability = 3
Impact = 3
Strategic
Probability = 1
Impact = 5
During FSP preparation,

most Indian manufacturers
have been contacted and
have shown interest.
Throughout the project, there
will be regular and continued
contact with manufacturers
which should lead to their
interest and participation.
As indicated by the
international consultants,
many foreign manufacturers
are keen to enter the Indian
market. Hence, they are
expected to be interested.
Existing users would also be
interested in possible
improvement in performance
of their systems as a result of
developments under the
project, and thus expected to
be interested.
Most existing users have
received support from MNRE
for project implementation.
Hence, some informal
influence can be exercised.
Last
update
Status
79
No.
Description
Lack of interest
from prospective
users.
Date
Identified
30 April
2011
Type
Strategic
Impact and
Probability
(on a scale of
1 (low) to 5
(high))
Probability = 2
Impact = 5
Countermeasures/
Management Response
Owner
Submitted,
updated by
UNDP
UNDP CO
UNDP
UNDP CO
UNDP
UNDP CO
Failure to obtain
cooperation
(sharing of
information,
accessibility for
discussions) from
Indian
manufacturers of
solar concentrator
technologies.
30 April
2011
Strategic
and
Operational
Probability = 2
Impact = 5
Failure to obtain
cooperation
(sharing of
information,
accessibility for
discussions) from
foreign
manufacturers of
30 April
2011
Strategic
and
Operational
Probability = 3
Impact = 3
All existing projects have

drawn upon available MNRE
subsidy support and
prospective users would be
aware of this. The need for
MNRE subsidy support
would generate interest.
The soft support of GEF is
also expected to create
interest and combined with
MNRE support as it is
expected to reduce the
payback on investment.
Manufacturers and users are
already sharing some
information with MNRE as
part of the process for grant
of subsidy. However, this
information is not in public
domain. Possible issues
such as confidentiality of
specific data and aggregation
of data such that the identity
of individual users is not
revealed, will need to be
resolved.
Information requirements will
be defined which are of nonproprietary nature.
Interest of foreign
manufacturers to enter the
Indian market should lead to
cooperation.
Last
update
Status
80
No.
Description
solar concentrator
technologies.
Failure to obtain
cooperation
(sharing of
information,
accessibility for
discussions,
access to
installations) from
existing and
prospective users.
Date
Identified
30 April
2011
Type
Strategic
and
Operational
Impact and
Probability
(on a scale of
1 (low) to 5
(high))
Probability = 2
Impact = 5
Countermeasures/
Management Response
Owner
Submitted,
updated by
UNDP
UNDP CO
UNDP
UNDP CO
UNDP
UNDP CO
Professional
capacity to develop
standards is limited
and/ or unavailable.
30 April
2011
Probability = 1
Impact = 3
Work on
development of
standards is
initiated in parallel
or is already
underway in
national/
international
standards bodies.
30 April
2011
Probability = 1
Impact = 3
Manufacturers and users are

already sharing some
information with MNRE as
part of the process for grant
of subsidy. However, this
information is not in public
domain. Possible issues
such as confidentiality of
specific data and aggregation
of data such that the identity
of individual users is not
revealed will need to be
resolved.
-Standards for solar hot
water heating systems have
been developed earlier,
which indicates that such
capacity exists.
Work on standards for CSP
is already underway and
there are many areas
common to both CSP and
CSH.
The national standards body,
BIS, is an important
stakeholder and will be a
member of the Project
Advisory Committee. This
will ensure coordination of
actions.
Through BIS, contact and
follow-up with the
Last
update
Status
81
No.
10
Description
Persons trained for

testing are
transferred or
assigned other
responsibilities.
Date
Identified
30 April
2011
Type
Operational
Impact and
Probability
(on a scale of
1 (low) to 5
(high))
Probability = 3
Impact = 3
Countermeasures/
Management Response
11
Testing facilities
that are established
are not used.
30 April
2011
Strategic
Probability = 2
Impact = 3
12
13
Unavailability of
national/
international
experts to deliver
training.
Limited interest
within academia in
undertaking
research in CSH
area.
30 April
2011
Operational
Probability = 1
Impact = 3
30 April
2011
Strategic
Probability = 1
Impact = 3
international standards body,

ISO, will be maintained.
Since several persons would
be trained, if some of them
are transferred, it may lead to
a temporary slowdown but
not complete stoppage.
Also effort will be made to
keep contributing to relevant
responsibilities as one of the
requirements to choose them
for such training.
As the industry grows, there
is greater recognition by both
manufacturers and users of
the need and value of
testing.
Development of standards
will be undertaken under this
project, and expected
regulatory requirements of
conformity will also drive the
need for testing.
Proper planning along with
prior commitments from /
agreements with national and
international experts for their
availability for trainings.
Under the Jawaharlal Nehru
National Solar Mission,
MNRE is supporting the
introduction of renewable
energy courses in
universities which should
lead to greater faculty
interest.
Owner
Submitted,
updated by
UNDP
UNDP CO
UNDP
UNDP CO
UNDP
UNDP CO
UNDP
UNDP CO
Last
update
Status
82
No.
14
15
16
Description
Failure to trigger
positive response
from energy
efficiency /
renewable energy
consultants and
other such service
providers for
involvement and
development of
capabilities in CSH
area.
Feasibility Studies
and Detailed
Project Reports do
not get converted
into prospective
projects.
MNRE CSH
subsidy scheme is
discontinued or
changed
substantially.
Date
Identified
Type
Impact and
Probability
(on a scale of
1 (low) to 5
(high))
Countermeasures/
Management Response
Owner
Submitted,
updated by
30 April
2011
Strategic
Probability = 2
Impact = 3
The response will depend on

industry growth and their
perception of business
opportunities in CSH area.
The promotion and
development activities of
MNRE under the Jawaharlal
Nehru National Solar Mission
and of this project should
lead to improved
perceptions.
UNDP
UNDP CO
30 April
2011
Strategic
Probability = 3
Impact = 5
By defining suitable selection

criteria for providing support
for these studies, projects
that have greater likelihood
of being implemented
UNDP
UNDP CO
30 April
2011
Regulatory
Probability = 2
Impact = 4
MNRE has been extending

financial support for quite
some time. The Jawaharlal
Nehru National Solar
Mission, under which this
support is being extended
now, is part of the National
Action Plan on Climate
Change. Hence, there is
only minimal likelihood of
abrupt changes in such
policies.
UNDP
UNDP CO
Last
update
Status
83
No.
Description
Date
Identified
Type
Impact and
Probability
(on a scale of
1 (low) to 5
(high))
Countermeasures/
Management Response
Owner
Submitted,
updated by
UNDP
UNDP CO
UNDP
UNDP CO
17
Users may not be

agreeable or willing
to agree to the
stipulated terms
and conditions for
receiving support,
hence may not opt
for scheme.
30 April
2011
Operational
Probability = 2
Impact = 4
18
Delays in
commissioning of
demonstration and
and availability of
results
After the project is
commissioned,
demonstration and
replication project
participants do not
comply fully with
the stipulated terms
and conditions.
CSH industry
growth is limited
due to greater
growth of CSP
industry due to
greater policy
emphasis, greater
interest of
manufacturers, and
larger scale of CSP
projects.
30 April
2011
Operational
Probability = 3
Impact = 3
30 April
2011
Operational
Probability = 1
Impact = 3
Support will be terminated to

projects which are not in
compliance, and there will be
provisions for cost recovery
in such cases. Other
alternative projects will then
be considered for support.
UNDP
UNDP CO
30 April
2011
Strategic
and
Regulatory
Probability = 3
Impact = 4
Over the time frame of the

project, this may have limited
impact, but in the long term,
this is a distinct possibility
which will have to be
addressed as market
develops.
UNDP
UNDP CO
19
20
MNRE and other government

agencies have been
providing support to R&D
and demonstration projects
for quite some time. The
terms and conditions of these
schemes are generally
similar to that proposed in
this CSH project. Users are
generally aware of and
familiar with such terms and
conditions.
The status of projects will be
regularly reviewed and any
necessary corrective actions
will be promptly undertaken.
Last
update
Status
84
ANNEX B. AGREEMENTS
Co-financing letter
85
86
GEF OFP endorsement letter
87
88
ANNEX C. TERMS OF REFERENCE

Project Management Unit (PMU)
National Project Director (NPD)
The National Project Director (NPD) will be appointed by MNRE in consultation with UNDP for overall
supervision of the project. The NPD will act as the Member Secretary to the Project Steering Committee
(PSC) and shall be responsible for overall implementation of the project.
Scope of work
To organize/convene Project Steering Committee meetings as per UNDP procedures
To facilitate interaction and communication with other Ministries and Governmental departments
To provide overall guidance to the NPC/NPM and the PMU
Approve Terms of Reference for PMU staff, including the NPC/ NPM
Review project budget revisions, annual progress reports, quarterly progress reports, FACE
(Fund Authorisation and Certification of Expenditures) annual work plan, facilitate audit, and
other administrative arrangements as required by MNRE and UNDP
Facilitate mid-term and terminal evaluations, and facilitate implementation of recommendations
Ensure timely progress of activities and project implementation as per the ProDoc, or any
agreed changes to the ProDoc based on changing circumstances or lessons learned during
project implementation
Ensure required government support required to achieve project milestones and quality of
outputs
National Project Manager (NPM)
Scope of work
Oversee the day-to-day planning, implementation and monitoring of project activities
Assist the NPD and NPC (if any) in strategic management and overarching implementation of
the project and achievement of its goals
Coordinate and manage the projects Inception Workshop and preparation of the Inception
Report
Prepare progress reports (quarterly and annual), FACE, annual work plans and budgets;
facilitate audit, and any other necessary documentation required by UNDP, MNRE and the
PSC, and recommendations to the Project Steering Committee.
Support timely progress of activities and project implementation as per the ProDoc or agreed
changes to ProDoc
Support the elaboration of monitoring & evaluation reports (midterm, terminal etc.) to MNRE
and UNDP/GEF.
Prepare and approve Terms of Reference for consultants and subcontracts and for equipment
procurement
Manage disbursement of funds, maintenance of accounts as per requirements of UNDP, and
provide inputs to internal and external audits.
Liaise with counterparts and main stakeholders to ensure their roles are appropriately
integrated into the project as envisaged
Delegate responsibilities to the Project Officer (Awareness & Dissemination).
Monitor the work of the agencies involved in managing specific components and outputs e.g.
the two Component Managers (Demonstration Project), SEC, etc.
Project Manager (Awareness and Dissemination)
Scope of Work
Coordination of all activities under Component 2: Awareness and Capacity Building
Organize selection of consultants for carrying out training needs assessment, preparation of
training modules and training materials, and selection of agencies for conducting the required
awareness and training programmes.
Oversee the design, delivery and evaluation of the awareness and training programmes
Coordinate the conduct of the international study tour and international training on testing.
89
Coordinate the organization of the two international conferences and expos on CSH
Organize the development, launch and management of the project website and various
publications under the project
Coordinate the award of fellowships and their progress
Organize promotion and publicity for CSH technologies
Network with all stakeholders to strengthen the awareness, capacity building and dissemination
work under the project
Component Manager (Demonstration and Replication Projects)

Scope of work
Assist PMC in preparing the call for Expression of Interest for Consultants for conducting
feasibility studies and preparation of DPRs.
Assist PMC in preparing the call for Expression of Interest for feasibility studies.
Create awareness on project objectives direct / indirect benefits to industries for participation
through industrial associations and awareness workshops with an aim to encourage industry to
respond to the EOI for feasibility studies.
Assist PMC in evaluation of proposals from Consultants for empanelment and industry for
feasibility studies, and demonstration and. replication projects
Provide orientation to the Consultants for undertaking feasibility studies and DPRs.
Review and evaluate the feasibility studies and DPRs.
Meeting with industry after the submission of the draft feasibility reports to evaluate the potential
of undertaking replication/demonstration projects.
Assist PMC in the approval and disbursement of GEF grant/subsidy for feasibility studies,
replication projects and demonstration projects.
Regular monitoring of the implementation of the demonstration and replication projects and
submitting periodic reports to PMC on the progress.
Analysis of data on the performance of the CSH systems submitted by industry on
Verification of the CSH performance data through site visits/performance monitoring for
Preparation of case study in the desired format on the project along with calculations of CO2
savings and submission to PMC
Promote smooth and synergistic relationship among owners, suppliers, bankers, consultants
and others involved in demonstration and replication projects
Manager, Administration & Finance (not paid by GEF funds)
Scope of work
Conduct/facilitate annual financial audit of the project, management responses and action
taken, produce the required statements as needed, keeps checks and balances in place to
ensure proper use of finances under appropriate headings and report on financial progress;
Prepare quarterly expenditure reports and their timely submission to UNDP
Be responsible for administrative and secretarial matters;
Arrange logistics, including travel and organization of meetings/workshops;
Assist in the processing and reporting project incomes and expenditures
Solar Energy Centre (SEC)
Scope of work
Be responsible for the implementation of all activities under outcome 1.3.

Undertake proof-of-concept demonstration of the required new CSH technologies.
Establish national testing facility for solar concentrator technologies for CSH applications
at SEC.
Provide technical support for establishing the regional test facility.
A detailed list of National and International Consultants providing services to the Project is attached in
Annex C of the GEF CEO Endorsement Request.
90
ANNEX D. EMISSION REDUCTIONS CALCULATION

Emission Reductions
Direct Emissions Reductions
2
The 30 demonstration (15,000 m ) and 60 replication CSH projects (30,000 m ) supported by the India
CSH project installed during the projects 5-year implementation phase will result in direct greenhouse
gas emission reductions over their economic lifetime. An economic lifetime of 20 years is assumed,
noting that the largest and latest SEGS (Solar Energy Generating Systems) CSP units at Harper Lake
35
in the US have been successfully commercially operating continuously now since 1989/90 .
As a result of this India CSH projects demonstration and replication projects installed with project
support during the project implementation period of 5 years, direct greenhouse gas emission
reductions totalling 315,000 tonnes of CO2 equivalent36 will be achieved over the lifetime of the
investments of 20 years. In the non-GEF base case, these energy needs would be satisfied by
furnace oil with an emission factor of 3.75 tCO2/tonne fuel oil.
Direct Post-Project Emission Reductions
The project does not explicitly include the establishment of financial mechanisms that will continue to
operate post-project end, although changes to the MNRE CSH subsidy scheme to be more
performance based will clearly persist post-project end. There may also be new CSH financial support
mechanisms established by MNRE. However, as a conservative assumption, no direct post-project
greenhouse gas emission reductions are claimed.
Indirect emissions reductions
The India CSH project has strong capacity building elements in an explicit overall barrier removal
framework. As such, the projects interventions are explicitly designed to have a strong indirect
37
emissions reduction impact. Using the GEF bottom-up methodology , indirect emission reductions
attributable to the project are 945,000 tonnes of CO2 equivalent. This figure utilises a replication factor
of 3 as per GEF typical market transformation programs (see para 43(c), GEF/ C.33/ Inf.18, April 16,
2
2008). In the alternative scenario, it is estimated that about 50,000 m of CSH systems area is
expected to be deployed annually. The cumulative amount of emission reductions that will be
achieved due to the deployment and use of CSH systems would be 1,095,150 t CO2 over the period
2011/12-2025/26 (that is, a total duration of 15 years during the project implementation period and 10
years of post-project scenario). Of course, this potential cannot be fully attributed to the GEF
interventions alone as other projects may have an influence over the CSH systems promotion and
implementation. Uptake of CSH technologies would also takes place to some extent due to on-going
(and future) national efforts and future donor-funded initiatives. It is proposed to apply conservatively a
causality factor 4 of 80%. This gives an indirect emission reduction (top-down) of 1,095,150 t CO2 *
80% = 876,120 t CO2. The range of indirect CO2 emission reductions is 876,000 945,000 tonne CO2.
35
http://en.wikipedia.org/wiki/Solar_Energy_Generating_Systems
The output of the improved versions of parabolic dish solar concentrators used for heating applications in India are expected
to range between 1.66 to 4.19 kWh/ day/m2 at operating temperature of 120oC [Presentation by Dr S B Kedare, Indian Institute
of Technology, Bombay, November 2010] . The output of the LFR and PTC would also lie in this performance band. Taking 300
days of usage and assuming that solar concentrator would replace Furnace Oil (FO) used in boilers, the annual CO2 savings
are expected to range between 0.2 to 0.5 tCO2/year/m2. As the project is considering 5 technologies and the final distribution of
technologies in the demonstration and replication projects is not yet known, an average CO2 savings of 0.35 tCO2/year/m2 of
solar collector area is assumed for calculating CO2 savings.
37
Manual for calculating GHG benefits of GEF projects: Energy Efficiency and Renewable Energy. GEF/ C.33/ Inf.18, April 16,
2008.
36
91
Cost effectiveness
If the GEF contribution (USD 4.4 million) is divided by the direct emission reductions of 315,000
tonnes of CO2 equivalent, this then gives a corresponding unit abatement cost (UAC) (i.e. GEF$ per
38
tCO2) of USD 13.97/tCO2 .
38
This is relatively lower than the current CDM CER prices. Secondary CER (EUA Dec 2011) as of 7 June =
12.56/tonne CO2 (about US$ 20/tonne CO2).
92
ANNEX E. SOLAR CONCENTRATOR TECHNOLOGIES39

It is estimated that, of the total fuel consumption in India, 15 to 20% is consumed by industries for low
and medium heat processes ranging from 60 to 250C. Therefore, a technical report and 8
international case studies were carried out to provide International experience, status and information
on used CSH technologies as part of this project preparation phase.
The technical comparison and analysis of the investigated five solar thermal concentrator technologies
(ARUN, Scheffler, parabolic trough, Fresnel and CPC vacuum tube collector) shows that at low
temperatures of 90-130C the CPC vacuum tube collectors has the best specific thermal power output
of 0.65 kW/m2 with a concentration ratio of only 2. Against that the Scheffler reflector has a
concentration ratio of 150, but the specific thermal power is only half of the CPC vacuum tube
collector. The three other concentrators reach higher temperature levels up to 200-250C and a
2
specific thermal power output of about 0.5 kW/m . The Scheffler, ARUN, parabolic trough and Fresnel
collector could only use the direct sunbeam and with that they have some limitations versus the
application of them in some regions in India. Against it, the CPC vacuum tube collector could provide
heat on a low temperature level even on a cloudy day, because it uses also the diffuse sunlight.
The comparison of the present costs for the five solar thermal concentrator technologies shows that
2
the cheapest collectors are the CPC vacuum tube and the Scheffler collector with 146 292 USD/m
2
(100-200 EUR/m ). The price level for the ARUN, parabolic trough and Fresnel collector is in a similar
2
2
range of 584-730 USD/m (400-500 EUR/m ). With that the parabolic trough and Fresnel collectors
should be comparable with the ARUN collector on the Indian market, especially if they would be
manufactured in the near future in India (estimated cost reduction of 20-30%). The return of
investment (ROI) of solar process heat and solar cooling systems, which were set up outside India, is
about 5-10 years for process heat as well as 10-15 years for commercial and 15-20 years for
residential solar cooling applications, respectively.
The presented 8 case studies cover different applications of process heat for wood processing, food
processing, metal processing, diary / milk cooling, laundry and air-conditioning on four continents
(North America, Europe, Africa, and Australia). Seven parabolic troughs and one Fresnel collector
installation are investigated. The identified specific costs for the installed solar systems are in a range
2
of 2,719 to 3,425 USD/kW (1,862 to 2,346 EUR/kW) cooling capacity and 1,761 to 1,768 USD/m
2
(1,206 to 1,211 EUR/m ) collector surface, respectively. In general, only little information of specific
costs and performance data are available of the presented projects, respectively.
However, the experiences worldwide on CSH applications are rather limited. Until 2007 only about 80
solar process heat installations with a total capacity of 25 MW were realised outside India. Against it,
450 to 500 solar cooling systems are realized in total worldwide in 2009. But only around 30 (about
5%) of these solar process heat and cooling systems are CSH applications. Therefore, it is highly
recommended to study real time operations of the parabolic trough and Fresnel technology outside
India to collect more detailed information on site (cost, economics, system design, etc.).
39
This is an executive summary drawn from a technical report produced during the PPG phase of this project.
93
ANNEX F. SUMMARY OF 11 ENERGY AUDITS & 4 INDIAN CSH CASE STUDIES
F.1 Introduction to Energy Audits

In order to develop a better understanding of the applicability and potential of solar concentrator
technology for process heat applications, energy audits in sample units (total 11 industries) have been
carried out. An initial review of thermal energy use in industries indicated that process heat using
industries could be divided into two broad categories a) those having medium to large steam
requirements (steam requirement of > 5 tons/hour) b) those having small steam requirements (steam
requirement of < 5 tons/hour). The industries having medium to large steam requirements are
characterised by the use of cheaper solid fuels which results in a longer pay-back period for the solar
concentrator systems; also the size and investment in a typical solar concentrator installation would
have to be large to meet substantial steam demand. In industries having smaller steam requirements,
the fuel used is generally costlier petroleum fuels, hence pay-back periods are shorter, and the initial
investment and area of the solar concentrator field for supplying a significant part of the steam is
relatively small. This is also borne out by the solar concentrator systems that have been installed so
far. Hence, units having smaller steam requirements were considered. Units using petroleum fuels as
well as non-petroleum fuels were selected. Additionally, units selected were those located in areas of
good solar radiation and units which evinced interest in installation of solar systems.
The units in which energy audits have been carried out are:
Pharmaceutical sector
Bharat Serums and Vaccines Ltd., Ambernath, Maharashtra
Sun Pharmaceutical Industries Ltd., Tandalja, Vadodara, Gujarat
Food Processing sector
Royal Dairy Farm, Tarapur, Boisar, Maharashtra
Satguru Agro Industries, Tarapur, Boisar, Maharashtra
G.S. Oils Ltd., Adilabad, Andhra Pradesh
Sahayamatha Salterns Pvt. Ltd., Tuticorin, Tamil Nadu
Chemicals sector
Kansai Nerolac Paints Ltd., Bawal, Haryana
Metal Furniture sector (Metal Treatment)
Godrej & Boyce Mfg. Co. Ltd., Plant No. 13, Vikhroli, Mumbai, Maharashtra
Mercury Manufacturing Co. Ltd., Chennai, Tamil Nadu
Hospital sector
P.D. Hinduja National Hospital & Medical Research Centre, Mahim, Mumbai, Maharashtra
KLES Dr. Prabhakar Kore Hospital and Medical Research Centre, Belgaum, Karnataka
F.2 Summary of Energy Audit Results

A summary of the results of the energy audits is shown in Table F-1. As can be seen, the range of
units covered in terms of their annual turnover, annual energy cost, heat requirement, and fuels used
varies quite widely.
94
Table F-1: Summary of energy audit results
Particulars
Annual turnover
Fuels used
Heat requirement
INR 10 - 19,720 million

Light diesel oil, high speed diesel,
pressurised natural gas, Coal,
Firewood, Agro-waste briquettes
0.04-4.05 Mkcal/hr
78-24,280 Mkcal/yr
2
Area available for solar system
120-5,400 m
No. of dishes
Scheffler*: 4-105
Arun*: 1-12
Aperture area of proposed solar concentrator

system
Scheffler: 64-1,680 m
Arun: 169-2,028 m
Heat generated
0.007-0.40 Mkcal/hr
18-935 Mkcal/yr
Solar system contribution
0.3-114 %
Simple Payback period

3.7-38.3 yrs
2
2
* Area of single dish Scheffler 16 m ; ARUN 169 m
Figure F-1 shows, in ascending order, the size of solar systems (both Scheffler and Arun) that can be
2
installed in the units. The range is 64-2,028 m . While the range is reasonably continuous, for most
2
units, the system size is about 1,000 m or less. This is primarily limited by the area that is available.
2200
2000
1800
Aperture area, m2
1600
1400
1200
1000
800
600
400
200
0
Figure F-1. Size of solar systems (x-axis denotes number of units surveyed)
Figure F-2 shows the annual heat generation possible from the solar systems as a function of their
size. The heat output of ARUN systems is greater than that for Scheffler systems.
95
Annual heat generation, Mkcal/h
1000
900
800
700
600
500
400
300
200
Scheffler
100
Arun
0
0
500
1000
1500
2000
2500
Aperture area, m2
Figure F-2. Annual heat generation vs. size of solar systems
Figure F-3 shows the thermal energy contribution as a function of size of the solar systems. The
contribution is mostly under 20 %; it is less than 10 % in about half of the cases, and is greater than
around 50 % in about one-fourth of the cases. The contribution is mostly under 20 % for both small as
well as large systems.
Solar system contribution, %
120
Scheffler
100
Arun
80
60
40
20
0
0
500
1000
1500
2000
2500
Aperture area, m2
Figure F-3. Thermal energy contribution vs. size of solar systems
Figure F-4 shows the simple payback period vs. size of solar systems. The payback period varies
between 3.7 to 38 years for Scheffler systems, and between 5 to 38 years for Arun systems. The
payback is influenced primarily by the fuel being replaced; it is low for petroleum fuels such as LDO
and HSD, and considerably higher for fuels such as coal and wood. The payback period also depends
on the utilisation of the solar system; for units that operate for all days of the year, the savings are
greater. Payback periods are lower for Scheffler systems than Arun systems as the subsidy from
MNRE forms a greater proportion of the capital cost of Scheffler systems. The simple payback
calculations do not take into account future increase in fossil fuel prices.
96
45
Payback period, years
40
35
30
25
20
Scheffler
15
Arun
10
5
0
0
500
1000
1500
2000
2500
Aperture area, m2
Figure F-4. Payback period vs. size of solar systems
97
F.3 Case Study of CSH application in a Hospital for Space Cooling- Chhatrapati
Shivaji Maharaj Hospital, Thane
Introduction: The hospital is situated in Thane city which is part of Mumbai Metropolitan Region. The
hospital has an indoor patient capacity of 550 with an average occupancy of 60%.
Thermal Energy Requirements and System Installed: There is requirement of thermal energy in the
Kitchen, Laundry, Autoclave unit and for Air Conditioning (double effect VAM). The steam requirement
in VAM section is high compared to the other systems which are being fed by oil fired boilers. The airconditioning load of the facility is 160 TR of which 80 TR load is met by steam based VAM. The peak
steam requirement in the VAM is 340 kg/hr.
2
The steam requirement of the 80 TR VAM is met by 92 Scheffler dishes (each dish is of 13.6 m ; the
2
total aperture area is 1251 m ) that have been installed on the terrace of the hospital. There is also a
backup Briquette Fired Boiler having 600 kg/hr rated capacity for the VAM. During operation the
excess steam from this boiler is sent to other steam requiring areas like the kitchen.
The Process Flow: The steam produced from the Scheffler dish system is conveyed to a main header
where a tapping from the backup boiler is also provided. The VAM draws steam from the header and
condensate from generator side of VAM is stored in a Condensate tank. The condensate is pumped to
a Hot Water Tank which is installed at a height of 10 m above ground level. The hot water is supplied
to the Liquid Desiccant Dehumidification System (L.D.D.S) by gravity. Return water from LDDS
system is sent to the Condensate tank. A steam connection from the Hot Water Tank to the LDDS is
also provided to maintain hot water supply to the LDDS in case of failure of condensate transfer pump.
The Scheffler Dish System: The Scheffler dish system has been installed by Sharda Inventions. A pair
of dishes concentrates solar radiation on a common receiver with standing and sleeping dish
orientation. The system has an automatic timer based tracking mechanism to track the Sun from the
East to the West and a manual seasonal arrangement for tracking the Sun from North to South. The
system uses PV cells to drive the motor of the automatic solar tracking system.
Performance: The yearly average solar beam radiation on the area is 260 W/m2. On site measurement
of the parameters on a December day showed that the VAM was able to provide 70 TR on an
nd
average. On 22 December, 2010, the steam output from the Scheffler dish system was measured as
2
1,770 kg/day (approx. 300 kg/hr for 6 hours/day) at a pressure and temperature of 7 kg/cm and
o
2
2
170 C. The specific thermal power output of the dish is calculated as 0.24 kg/hr/m or 0.16 kW/m .
F.4 Case Study of CSH application in a hospital for Space Cooling Muni Seva
Ashram, Goraj (Near Vadodara)
Introduction: The Muni Seva Ashram is situated in Goraj, Gujrat (30 km from Vadodara). The facility
contains Kailash Cancer Hospital and Research Center and Akshar Purshottam Aarogya Mandir
which is a multi-specialty 95 bed hospital. Around 45,000 OPD patients are attended to in these
hospitals daily.
Thermal Energy Requirements and System Installed: There is requirement of thermal energy in the
kitchen, Autoclave unit and for Air Conditioning (double effect VAM). The facility has 4 VAMs of rated
capacities 100 TR x 2 no., 200 TR x 1 no., 400 TR x 1 no. These are operated as per the load
requirements. The major consumption of steam is in the VAM (peak requirement of 3,200 kg/hr of
steam). This however varies with the cooling load and is quiet low in the winter season. In summers,
one of the 100 TR VAMs and either 200 TR or 400 TR VAMs are operated. Either 100 TR or 200 TR
VAM is operated in winter as per requirement. The table below states the requirement of steam in the
different areas of the Cancer Hospital.
98
Thermal
Energy
Consumption Areas
Pressure
2
(kg/cm )
Maximum
Temperature
Requirement (C)
Steam
Consumption
Kg/day
VAM
8.5
180
Variable
Kitchen
1 to 2.5
95
100
Auto-Clave (sterilization)
120
30
To meet the steam requirement, 2 boilers which produce steam @ 1.5 TPH and 3 TPH using fuel
2
2
wood and 100 Scheffler Dishes (each dish of 12.5 m area; total aperture area is 1,250 m ) have been
used. The dishes are designed to provide steam @ 400 kg/hr and can meet up to 100 TR load. Fair
amount of solar energy is available for about 7-8 hours in a day so the steam from the Scheffler is
used first and the boilers are started as per requirement. As another measure to reduce boiler fuel
requirements the condensate from the VAM is supplied to the boiler feed water tank.
The Scheffler Dish System: The installer of the system is Gadhia Solar. The dishes are installed in 4
rows with a pair of dishes concentrating solar radiation on the common receiver. Each pair has one
standing and one sleeping dish. This leads to increased concentration efficiency and reduced space
for installation. The system is equipped with an automatic timer based tracking mechanism to track the
sun from East to West and a manual seasonal arrangement for tracking the sun from North to South.
The steam from the system is sent to the steam header after which it enters the boiler steam drum
where steam pressure is increased in case it's less. If steam requirement is higher, boiler feed water is
used with steam from solar system.
Performance: On 21st December, 2010, the steam output from the Scheffler dish system was
measured as 2,460 kg/day (approx. 400 kg/hr for 6 hours/day) at a pressure and temperature of 8
2
o
2
kg/cm and 175 C. The specific thermal power output of the dish is calculated as 0.32 kg/hr/m or 0.24
2
kW/m .
F.5 Case Study of CSH application in dairy for pasteurization 3 Chitale Dairy,
Sangli
Introduction: Chitale dairy is located in Bhilwadi, around 40 km from Sangli and around 250 km from
Pune in Maharashtra. 4000,000 litres of milk is processed here every day. The dairy functions for 24
hrs in a day and for the whole year.
Thermal Energy Requirements and System Installed: There is requirement of heat for pasteurization
o
o
of milk. Cold raw milk at 4 C is heated to around 70 C and kept at this temperature for at least 30
minutes. The dairy has installed 2 nos. of ARUN dishes for steam generation. There is also a backup
boiler provided which is used for 14 16 hrs/day when the output from the solar concentrator is not
available. By using steam, hot water is generated and stored in a thermal storage tank which is used
for the pasteurization process as per requirement.
The ARUN Dish System: The system has been installed by Clique Developments Pvt. Ltd. The
2
2
aperture area of each dish is 169 m , thus for the two dishes the aperture area is 338 m . On an
2
average, in good solar radiation conditions 400 kg/hr of steam can be generated at 8 kg/cm pressure.
The dishes have been mounted on the roof of the plant.
Performance: The December, 2010 data (for December 1st to 24th) provided by BG Chitale for one
operational dish gives average output as 188.5 kg/hr of steam, which is 94% of the rated output i.e.,
2
@ 200 kg/hr. The specific thermal power output of the dish is calculated as 1.11 kg/hr/m or 0.85
2
kW/m .
99
F.6 Case Study of CSH application in dairy for pasteurization Mahanand

Dairy, Latur
Introduction: Mahanand dairy is located in Latur, Maharashtra. The dairy processes about 20,000
litres of milk daily. The CSH system in the dairy was installed as part of a collaborative R&D project
between Indian Institute of Technology (IIT) Bombay and Clique Developments. The project was
sponsored by MNRE.
Thermal Energy Requirements and System Installed: There is requirement of heat for pasteurizing
o
o
milk. Cold raw milk at 4 C is heated to around 70 C and kept at this temperature for at least 30
2
minutes. There is one ARUN dish system installed of 160m . A Furnace Oil fired boiler was earlier
solely providing for the heat requirement. Now this boiler is used as a backup system. The ARUN dish
has been optimally designed and integrated to give 80-85% solar fraction during the non-monsoon
months.
Performance: The performance of the dish was measured during March 22 to May 3, 2006 40. The dish
o
was recorded to deliver 380,000 kcal/day heat at 160 to 180 C (approximate specific thermal power
2
2
2
output of around 0.45 kg/hr/m or 0.34 kW/m ). The steam pressure is up to 10 kg/cm . It can store 50
to 70% of the heat generated over a day in a pressurized water vessel. On sunny days, the system
was recorded to generate up to 515,000 kcal/day. The efficiency of the system was recorded to be
between 40-70% based on time of day and sky conditions.
The system generated heat equivalent to 53 litres of Furnace Oil based on 42 day continuous data
spanned over clear sunny and few cloudy days. It generated heat equivalent to about 72 litres on clear
sunny days. This is equivalent to saving of about 100 to 105 litres of Furnace Oil per year per sq. m. of
dish area.
40
IIT Bombay (2006). DEVELOPMENT, INSTALLATION AND EVALUATION OF LARGE SCALE CONCENTRATING SOLAR
COLLECTOR FOR MEDIUM TEMPERATURE INDUSRIAL THERMAL APPLICATIONS, MNRE R & D Project Ref. No.
15/9/2002-ST, Energy Systems Engineering, Indian Institute of Technology Bombay
100
ANNEX G. LIST OF CSH INSTALLATIONS IN INDIA

Table G-1: List of CSH installations in India (Source: MNRE)
No.
State/Establishment
Capacity
2
(m )
Status (as on
September
2010)
76
Commissioned
95
Commissioned
Andhra Pradesh
IGP Grey Hounds
(Police)
Rishi Valley School
Sanghi Mills
95
Commissioned
Tirumala Tirupati
Devasthanams
1,006
Commissioned
VEDA Educational
Development
Association
320
Commissioned
Application
Type of
solar
concentrator
Steam Cooking for

350 persons cooking
Steam generation for
350 persons cooking
500 persons cooking
150,000 persons
cooking
3,000 persons cooking
Scheffler
Under installation

Scheffler
60
Under installation

200 persons cooking
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
1,592
6
Chhatisgarh
Ramakrishan Mission
Ashram
300
300
Gujarat
Adarsh Niwasi Shala
Atmiya Vidy Mandir

International
Residential School
for boys
190
Commissioned
Brahmachari Shri
Bhagwati Nandji
Educational Trust
95
Commissioned

500 persons cooking
Scheffler
10
Brahmachari Shri
Bhagwati Nandji
Educational Trust
95
Commissioned

500 persons cooking
Scheffler
11
Brahmachari Shri
Bhagwati Nandji
Educational Trust
200
Commissioned

Scheffler
12
Deevalaya
95
Commissioned

500 persons cooking
Scheffler
13
Eklavvya Modal
Residential School
95
Commissioned

500 persons cooking
Scheffler
14
Jivan Shala
Ambardeep
95
Commissioned

500 persons cooking
Scheffler
15
Kasturba Kanya
Chhatralaya
60
Under installation

200 persons cooking
Scheffler
16
Kedi Residential
School Nagaria
95
Commissioned

500 persons cooking
Scheffler
Scheffler
101
No.
State/Establishment
17
Manthan Apang
Kanya Sewa Sankul
Muni Seva Ashram
64
Status (as on
September
2010)
Under installation
1,250
Commissioned
People's Welfare
Society
Pragyachaksu, Mahila
Sewa Kunj
Sanskardham
288
Commissioned
95
Commissioned
96
Commissioned
Sarvanaman Vidya
Mandir Atmiyadham
Shri Bhimnath
Mahadev Seva Samaj
Tapi Food Product
95
Commissioned
60
Under installation
95
Commissioned
The Agricultural
Produced Mkt.
The Times of India
Relief Funds
Veeryatan Vidyapith
190
Commissioned
95
Commissioned
95
Commissioned
Vivekanad Vidyalaya
run by Muni Seva
Ashram
95
Commissioned
18
19
20
21
22
23
24
25
26
27
28
Capacity
2
(m )
Application
Cooking for 400
persons
Solar Air Conditioning
50 TR (tons
refrigeration)
1500 persons cooking
500 persons cooking
500 persons cooking
500 persons cooking
200 persons cooking
Industrial Process
Heat
500 persons cooking
500 persons cooking
500 persons cooking
500 persons cooking
Type of
solar
concentrator
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
3,598
29
Himachal Pradesh
National Institute of
Technology
96
Proposal
Received
Cooking & laundry for

700 students
Scheffler
54
Under installation
Thermic Fluid based

cooking system
Scheffler
240
Commissioned
Scheffler
320
Under installation

350 persons cooking
30 TR
614
NA
Installed
Defence &
Employment
Company, Leh
Defence &
Employment
Company, Leh
Transit Camp
500 persons cooking
Scheffler
96
30
31
32
Haryana
Air Force
Communication
Center
Brahma Kumari
Educational Society
M/s. Magnetic Mareli
Power Train Pty. Ltd.
33
14 Corp Head
Quarter
34
3 Infantry Division
NA
NA
35
36
Leh
Transit Camp
NA
95
NA
Commissioned
Scheffler
Scheffler
Scheffler
Scheffler
95
Karnataka
102
No.
State/Establishment
37
Bosh Motor Industries

Co. Ltd.
Kirloskar Serrterous
Industry
Rishi Samskruti Vidya
Kendra
Sanik School Bijapur
288
Status (as on
September
2010)
Commissioned
96
Commissioned
500
Commissioned
95
Commissioned
41
Shri Tontada
Siddalingeshwar
Kainkarya (Dasoha)
Seva Sangh (Regd.)
192
Fresh Application

Industrial Process
Heat
500 persons cooking
500 persons cooking
Steam Cooking
42
Sree Siddaganga
Math
Sringeri Math
1,760
Fresh Application
Steam Cooking
Scheffler
589
Commissioned
Scheffler
The Royal Garden

ITC Hotels
World Renewal
Spiritual Trust, Hubli
96
Under installation

Laundry Applications
50
Commissioned

500 persons cooking
Scheffler

cooking
Dry cleaning
Solar Steam Cooling
Scheffler

500 persons cooking
component washing
Process Application
Dairy
Solar Air Cooling
Industrial use for
washing engine
components
cooking
Scheffler

cooking
3000 persons cooking
of 212.5 TR
Solar air conditioning
15 TR
Scheffler
38
39
40
43
44
45
Capacity
2
(m )
Application
Type of
solar
concentrator
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
3,666
46
Maharashtra
Adharashram
67.2
Commissioned
47
Gujraj Cleaners
240
Commissioned
48
Jawahar Navodaya
Vidyalaya
Jnana Prabodhini
Solapur
Kirloskar, Copeland
Ltd.
M/s B.G. Chitale
Mahananda Dairy
Mahindra & Mahindra
Mahindra & Mahindra
101
Under installation
96
Commissioned
64
Commissioned
320
160
1,120
338
Sanctioned
Commissioned
Under installation
Under installation
Rajaji Sahmbhaji
Bhoshali Sainik
School
Sanjivan Public
School
Shri Sai Baba
Sansthan Trust
Shri Sai Baba
Sansthan Trust
Thane Municipal
Corporatration
Vidyabharti
Shaishanik Mandal
84
Commissioned
190
Commissioned
376
Commissioned
1,168
Commissioned
2,502
Sanctioned
135
Commissioned
49
50
51
52
53
54
55
56
57
58
59
60
Scheffler
Scheffler
Scheffler
ARUN
ARUN
Scheffler
ARUN
Scheffler
Scheffler
Scheffler
Scheffler
Scheffler
103
Capacity
2
(m )
Status (as on
September
2010)
No.
State/Establishment
61
New Delhi
ITC Maurya
176
Under installation
62
ITC Maurya
320
Under installation
Application
Type of
solar
concentrator
6,961
Solar steam
generation
Process Application
(laundry, kitchen and
hot water generation)
Scheffler
Cooking for 1000

persons
Cooking laundry &
sterilization
Process Application
laundry
Scheffler

900 persons cooking
15,000 persons
cooking
15,000 persons
cooking
Scheffler
Installed
Institute
Scheffler
Under installation

cooking
Scheffler
ARUN
496
63
64
65
66
Rajasthan
Brahma Kumari Gyan
Sarovar Complex
Global Hospital
Heavy Water Plant
Hotel Clarks Amer,
Jaipur
180
Commissioned
252
Commissioned
320
80
Under installation
Fresh Application
Scheffler
ARUN
Scheffler
832
67
68
69
Tamil Nadu
Avinashlingam
University for Woman
Sathyabama
University, Jeppiaar
Nagar
Turbo Energy/TVS
260
Commissioned
224
Under installation
760
Under installation
Scheffler
Scheffler
1,244
70
Uttar Pradesh
Dayal Bagh
Educational Institute
71
Uttarakhand
Sri Ved Mata Gayatri
Trust
80
80
Grand Total
160
160
2
19,734m
104
ANNEX H. SUMMARY REPORT ON STAKEHOLDERS CONSULTATIONS

Five stakeholder consultations were held at Pune, Delhi, Ahmedabad and Hyderabad during the
period November 17-30, 2010. More than 150 participants representing the CSH industry, CSH users,
energy consulting companies, MNRE, State Nodal Agencies, International and National Consultants,
Academic and research institutes, UNDP, Municipal Corporations participated in the stakeholder
consultations. The typical programme for the stakeholder consultations consisted of:
o
o
o
Introduction to the project

Technical presentation by experts and CSH manufacturers
Discussions
Main Points Discussed During the Stakeholder Meetings

o
CSH Technology Packages: CSH needs good integration with existing or back-up heating system:
Solar radiation is available for 250-300 days in a year and 6-8 hours per day. This intermittent
feature of solar energy requires very good integration of CSH systems with existing or back-up
heating system to ensure availability of uninterrupted heating service to the industry. The
development of CSH technology packages to suit different types of industrial applications should
be a highest priority.
Expectations from the end-user industry: The main considerations by end-user industries while
considering CSH options are: initial investment, pay-back period, integration with the existing
system, high reliability like any other good quality industrial equipment, guaranteed performance
as per claims, area required for installing CSH system, weight of the CSH system in case it has to
be installed on roof, good reference from end-users.
Lack of Awareness: Awareness on solar concentrator option is low amongst industries of all
categories.
MNRE subsidy scheme: The MNRE subsidy scheme appears to be generally accessible, simple
enough to understand, and sustainable into the foreseeable future. It has been able to result in
more than 70 installations in India However in its present form, the MNRE subsidy scheme does
not sufficiently differentiate between the different available CSH technologies on the basis of their
performance, and hence the MNRE subsidy scheme in practice serves to promote the extension
of the simplest and lowest cost CSH technologies (Scheffler).
Lack of performance data: The absence of systematic monitoring of in-use process CSH
applications means that the performance of existing CSH applications is not quantified and hence
the necessary technical learning from the operation of the existing CSH applications in India is
limited. In the absence of real monitored performance data, the credibility of the existing CSH
technologies in real applications in India is low, and this is a key barrier to the increased uptake of
CSH in India.
Shortage of accurate solar radiation data: There is also a shortage of site-specific applicable direct
beam solar radiation data. As the performance of any solar concentrator system depends on the
available direct solar radiation, the absence of direct beam solar radiation data hinders the
realistic estimation of CSH applications performance.
Mirrors for CSH systems: It was informed that the life of mirrors is emerging as an important issue
and several of the manufacturers are now trying out imported solar mirrors in their installations.
Potential applications of CSH: The participants in general were optimistic about a good potential
for CSH, given the dependence of a large section of Indian industry on imported petroleum fuels
for meeting low and medium temperature requirements. Some of the potential CSH applications
discussed during the stakeholder consultations were:
1. Textile (composite mills, grey cloth mills, mills engaged in finishing operations, garments)
2. Chemical (dye and pigments; organic chemicals; rubber processing, paints and resins)
3. Pharmaceutical (bulk drugs, Active pharmaceutical ingredients and formulations)
105
4. Paper (Recycled paper mills)

5. Food processing (fruit preservation, bread making, drying of plantation products)
6. Hotels
7. Hospitals
8. Institutional cooking (hostels, armed forces, religious institutions, catering, etc.)
9. Dairy
10. Laundry
11. Metal treatment (galvanizing, anodizing, and painting)
12. Space cooling using vapour absorption cycle
Minutes of Debriefing Meeting
th
A debriefing meeting was conducted on 26 November 2010 at the MNRE premises to appraise the
MNRE and UNDP officials on the progress being made in the preparation of the FSP and seek their
inputs. The debriefing meeting was organized towards the end of the mission of the two international
consultants Mr. Frank Pool and Dr Uli Jakob.
On behalf of the Consultants team a presentation was made by Mr. Frank Pool and Dr Sameer
Maithel
The main points made during the discussions on the presentation are as follows:
o
Secretary, MNRE was of the view that there should be a close synergy between the proposed
project and the MNRE programme and the proposed UNDP-GEF project should strengthen
the MNRE programme.
There was an agreement that process integration is as important an aspect as solar

concentrator technology for developing technology application packages based on solar
concentrators.
Dr. Nayanika Singh was of the opinion that the project should keep a window for
accommodating a few new solar concentrator technologies apart from the 5 mentioned in the
presentation. Dr. Singhal said that instead of naming the technologies by their brand/popular
names they should be named by their generic names.
Dr. Ashvini Kumar said the project should have a strong end-use sectoral focus and should
aim at demonstration of technology application packages.
The consultant team was asked to define the term fairly mature with reference to the two
technologies currently available in India.
Secretary, MNRE was interested in knowing how the demonstration projects would be
selected and implemented. The discussion on this topic resulted in the following points being
made:
o Instead of waiting for the project to start, MNRE can already start the process of
selecting some demonstration projects (time frame of 3-6 months), so that several
demonstration projects can be taken up early in the project.
o The demonstration projects would require performance specifications as well as
criteria for selection. The selection of the demonstration projects can be taken up
through an expression of interest.
o Ministry is working closely with the Indian Army for using solar concentrators for
cooking in the Ladakh region and it is estimated that 600 solar concentrator systems
would be required in Ladakh alone.
106
Secretary, MNRE was of the view that there is no need at this point of time to proactively seek
co-financing from international agencies for demonstration of technologies from international
suppliers. Some of the bi-lateral agencies are already in touch with the Ministry for such
projects. He said that under the JNNSM, MNRE has the required funds to procure and install
these technologies for proof of concept under Indian conditions. He added that the project
should be open to seeking international support in the field of testing, capacity building, etc.
Secretary, MNRE informed that MNRE already has a plan for testing centres for solar
concentrator technologies. Dr. Ashivini Kumar added that IIT, Bombay has been entrusted
with the task for preparing the testing procedure for solar concentrators.
Mr. Ajit Gupta advised the consultant team to clearly articulate the concepts of
107
ANNEX I. LIST OF CSH MANUFACTURERS

List of Known Manufacturers/Suppliers Involved in Installation of Solar Concentrating Systems for
Steam Applications/Direct Cooking available on MNRE website (list updated on 04/01/2011).
Table I-1: Fixed receiver E-W tracked technology (Single axis)
Name & Address
Single axis
Gadhia Solar Energy Systems (P) Ltd.
Plot No. 86, Old G.I.D.C.,
Gundlav, Valsad,
Gujrat 396 035
Taylormade Solar Solutions Pvt. Ltd.,
C-1/B-51, GIDC Pardi,
Taluk Pardi, District Valsad
Gujrat
M/s Sharada Inventions
94/1, MIDC Satpur
Nashik -422007
M/s Thermax Limited
Sai Chambers
4, Mumbai-Pune Road
Shivaji Nagar, Pune-411003
M/s Unisun Technologies (P) Ltd.
7, Ist Floor, Kodava Samaja Building,
Ist Main Road, Vasanthanagar,
Bangalore - 560 052.
Nilloy Newsun Technologies Pvt. Ltd.
A-2, Kailashpuri A,
New Sanganer Road
Sodala,
Jaipur-302019
K Energy
5, Haider Building, Outside Sojati gate
Jodhpur, Rajasthan -342001
Phone/Fax/Email etc.
Tel: 02632-236703/237408
Mobile: 09820700189 (Mr. Badal, MD)
Email: badal@gadhia.solar.com
Website: www.gadhia-solar.com
Tel: 079-40035857, 40040888
Mobile: 09712933390 (Mr. Dharmendra Gor),
09925133390 (Mr. Sameer Patel)
Email: info@tss-india.com, dharma@tssindia.com
Website: www.tss-india.com
Tel: 0253-2352444
Mobile: 09822018810 (Mr. Kapadia, MD)
Fax: 0253-2336014
Email: solarvihar@yahoo.com
Website: www.shardainventions.com
Tel. 020-25542263, 64674230
Mobile: 09923022249 (Mr. A. Lahari)
Fax: 020- 25541226
Email: solar@thermaxindia.com
Ph: 91 80 22289663, 22355238, 22289290
Mobile: 09880022272 (Mr. Shivanand Nashi)
Fax: 91 80 22289294
E-mail: unisun@vsnl.com
Web: www.unisun.net
Tel: 91- 141- 6532575, 2290712
Mobile: 09829050554 (Mr. Jitender Sharma)
Fax: 91-141-2291260
Website: www.nilloynewsun.co.in
E-mail: j_31nilloy@rediffmail.com
Telefax: 0291- 2630432, 2639045
Mobile: 09829022899 (Mr. Sanjeev Kachhwaha)
Email : kachhwaha@yahoo.com
Tel: 02562- 239330

Mobile: 09822187693 (Mr. Rahul Kulkarni)
Email solardhule@hotmail.com ,
essential_equipments@yahoo.co.in
Solar Alternatives
Tel: 0612-2555787 Fax: 2279030
St. Marys Church Compound
Mobile: 09334410961 (Fr. Mathew)
Phulwari Sharif, Patna-80150
Email: solarvihar@yahoo.com
Fully Automatically Tracked Large Dish Technology
Tel. : 022-28609011
M/s Clique Development Pvt. Ltd.,
Mobile: 09869029800 (Mr. Shyam Pathak)
134 A/B, First Floor, Government Industrial
Fax: 022-28609734
Estate, Charkop, Kandivali (West)
E-Mail: sbk@cliquetechnologies.com
Mumbai- 4000067
Website: www.clique.in
Essential Equipments
Bhide bag, Deopur, Dhule- 424002
Maharashtra
108
Note: This list is not exhaustive and is based on the information available in the Ministry. These
manufacturers are supposed to install systems as per MNRE specifications available at its website:
www.mnre.gov.in. Beneficiaries may, therefore, ensure that the systems supplied by them are
installed as per these specifications for which they may consult Technical Back up Units cum Regional
Test Centers & State nodal agencies of Ministry, if necessary. List of these Units/Centres/Agencies
are given at website.
Table I -2. List of potential CSH manufacturers/suppliers (other than those mentioned on MNRE
website)
Contact person (name and email)
Website
Solar
Concentrator
Technology
www.aksonsolar.com
Scheffler
Company
Akson's Solar
Equipments Private
Limited, Pune
ROVER Automation,
Mumbai
Aditya M Akole
(info@aksonsolar.com)
Dr. Praveen Salinkar
(dr.salinkar@gmail.com)
Linear Fresnel
Reflector
KG Design Services
Private Limited,
Coimbatore
KIE Solatherm Pvt.
Ltd., Pune
Dr S P Viswanathan,
(spv@kggroup.com)
Linear Fresnel
Reflector
D.V. Apte (apte.dv@gmail.com)
Parabolic
Trough
ATE Envirotech
Private Limited, Pune
Maharishi Solar
Technology Pvt Ltd,
Noida
Megawatt Solutions
Pvt. Ltd.
ARKA Power Pvt. Ltd,
Mumbai
Dr Vishal Sardeshpande
(v.l.sardeshpande@ateindia.com)
Pradeep Khanna
(pradeep@maharishisolar.com)
Parabolic dish
2
3
4
5
6
7
8
Sidharth Malik
(smalik@megawattsolutions.co.in)
Serveshresht Sawhney
(servo@arkapower.com)
www.maharishisolar.com
Parabolic
Trough
Parabolic dish
www.arkapower.com
Linear Fresnel
Reflector
109
ANNEX J. LIST OF LEADING INTERNATIONAL GROUPS INVOLVED IN TESTING OF

SOLAR CONCENTRATORS
1. The Fraunhofer Institute for Solar Energy Systems, Freiburg, Germany

(http://www.ise.fraunhofer.de)
2. Institut fr Thermodynamik und Wrmetechnik, University of Stuttgart, Germany
(http://www.itw.uni-stuttgart.de/)
3. German Aerospace Centre (DLR), Cologne, Germany (http://www.dlr.de)
4. Le Centre Scientifique et Technique du Btiment (CSTB), France (http://www.cstb.fr/)
110
ANNEX K. SEQUENCE OF ACTIVITIES FOR DEMONSTRATION AND REPLICATION

PROJECTS
A. Common Activities
#
1
2
Description
Call for Expression of Interest (EoI) for the feasibility study.
Creating awareness on project objectives direct / indirect
benefits to industries for participation through industrial
associations and awareness workshops with an aim to
encourage industry to respond to the EoI for feasibility study
Action
Component Manager, PMC
(Activity 2.1.5.2)
Request for participation by the industry (for implementing the

feasibility study) in the required format
Industry
4
5
Evaluation of the request and approval for the feasibility study

Conducting feasibility study

Empanelled consultant,
Industry
Review of the feasibility study report and meeting with the

management of the industry on next steps.
Component Manager &

Empanelled Consultant
7
8
Release of subsidy amount for conducting the feasibility study

Request from the industry for participation in demonstration
/replication project.
Component Manager
Industry
Selection of industry for replication/ demonstration project
PMC, MNRE and

Component Manager
B. Activities for Demonstration Projects

#
1
Description
Preparation of DPR for the Demonstration Project
Action
Empanelled Consultant,
Industry
Approval of the DPR, clearance for MNRE subsidy and release

of subsidy for the DPR preparation

and MNRE
3
4
Implementation of the project

Training conducted for 2 technical personnel in the operation of
the CSH system during project implementation.
CSH vendor, Industry

PMC (Activity 2.1.1.3)
Filing of completion report with operating data for minimum 1

month.
Release of 50% of the GEF project contribution
Filing of operating data for 1 year
Analysis of data by Component Manager & queries for any
clarifications required
Industry
Verification of data by technical experts through site

visits/performance monitoring for 2 to 3 days
Component Manager
10
Preparation of case study (in the desired format) on the project

along with calculations of CO2 savings and submission to
Component Manager
11
12
Release of 50% of the GEF project contribution
Component Manager
Industry
13
Updating the case-study and adding to the CSH project

database
6
7
8
Component Manager
Component Manager
Component Manager
PMC
nd
Filing of operating data for 2
year of operation
Component Manager
111
C. Activities for Replication Projects

#
1
2
3
4
5
6
7
Description
Implementation of the project in accordance with guidelines for
the replication project
Training conducted for 2 technical personnel in operation of the
CSH system during project implementation.
Filing of completion report with operating data for minimum 1
month.
Release of 100 % of the GEF project contribution
Filing of operating data for 1 year
Analysis of data by Component Manager & queries for any
clarifications required
Preparation of case study in the desired format on the project
along with calculations of CO2 savings and submission to PMC
Action
CSH vendor, Industry
PMC (Activity 2.1.1.3)
Industry
Component Manager
Industry
Component Manager
Component Manager
112
ANNEX L. PROJECT ANNUAL TARGETS

Table L-1: Market Development and Promotion of Solar Concentrators based Process Heat Application in India Project Annual Targets
Strategy
Project Goal: Reduced GHG
emissions from use of CSH
systems for low and medium
temperature process heat
Objectively Verifiable Indicator

Cumulative CO2 emission reduced from start of
Project objective: Increased

use and promotion of CSH
process heat applications in (m2) by EOP
systems for low and medium
No. of companies that have installed CSH systems
temperature process heat
by EOP
applications
Outcome 1.1: Enhanced
No. of technology suppliers that are available to
understanding of CSH
market CSH technologies in India by EOP
technologies, applications
and markets
No. of companies that are potential users of CSH
Output 1.1.1: Developed

information packages and
characterised technologies,
applications, and markets
Outcome 1.2: Adoption of

standards and specifications
for guidance of manufacturers

packages in purchasing and installing CSH process
heat systems by EOP
Number of technology assessment reports of CSH
technologies by EOP
Number of CSH technology application information
packages developed by EOP
No. of Indian CSH system components & equipment
manufacturers that comply with the BIS standards
and specifications by EOP
Target
32,900
1
1,050
2
2,450
60,000
6,000
7,000
90
12
Annual Targets
3
5,250
4
8,400
5
15,750
11,000
12,000
24,000
14
18
24
28
60
10
12
24
60
10
12
24
90
14
18
24
28
15
10
30
10
20
113
Strategy
and users for assurance of

CSH quality, safety, and
performance
No. of Indian CSH system component & equipment

manufacturers that comply with ISO standards and
specifications for CSH systems by EOP
manufacturers that entered into the internal CSH
business (export of CSH components & equipment)
by EOP
Output 1.2.1: Developed CSH A document of performance measurement standard
performance standards and
developed by year 2
technology specifications
Number of test protocols developed technology
specific by year 3
No. of minimum performance norms developed by
year 2
No. of technology specifications developed by EOP
No of performance standards and specifications
taken up for consideration and adoption as draft
national standards by BIS by year 4
No. of performance standards and specifications
submitted to ISO as draft international standards by
year 4
Outcome 1.3: Adequately
capable and operational
testing laboratories for
verification of manufacturer
manufacturers that approached testing laboratories
claims and guidance of CSH
for certification by EOP
users to enable informed
decisions
equipment manufacturers that approached Indian
testing laboratories for certification to enable their
systems sale in Indian market by EOP
Output 1.3.1: Developed CSH Number of reports on proof-of-concept testing carried
system component testing
out at SEC for at least three technologies by year 4
facilities
Outcome 2.1: Strengthened
No. of technology suppliers that are available to
technical capacity and
market CSH technologies in India by EOP
10
Annual Targets
3
0
0
Target
5
0
10
5
1
0
0
1
0
2
0
2
1
1
0
10
10
28
5
1
1
0
0
1
0
0
1
0
0
0
0
12
114
Strategy
awareness of stakeholders of
CSH systems for industrial/
institutional process heat
applications

No. of trained participants of test facilities that are
actively involved in the development of the CSH
technology development by EOP
No. of CSH technologies available in India by EOP
due to increased awareness and capacity
No. of banks/financial institutions that agreed to
finance CSH projects and CSH system component &
equipment manufacturing as a result of the
awareness enhancement programs by EOP
No. of papers presented in conference that were
used by policy makers in decision making on
technology applications, in general, and CSH
technology applications, in particular, by year 4
% of conference participants expressed satisfaction
about the conference by EOP
Training needs assessment completed by year 2
No. of training modules (including all the training
material) on CSH technologies developed by year 2
Number of training courses on CSH technologies
organized and conducted under the project by EOP
Number of personnel trained in the training courses
by EOP
specific aspects of CSH technologies from study tour
conducted under the project by year 2
Number of trained technical consultants by EOP

manufacturers/ vendors,
installers and CSH users
Output 2.1.2: More trained

technical consultants that
provide technical services to
both CSH system
components & equipment
manufacturers and users
Output 2.1.3: Established and
supported industry-academic
partnership through research
programmes to build future
capacities
Number of Ph.D. fellowships supported by year 3

Number of M.Tech. fellowships supported by year 3
Number of institutions where fellowships supported
by year 3
Target
Annual Targets
3
8
10
10
0
60
10
6
0
15
5
12
0
24
0
10
70
70
70
1
3
0
0
1
3
0
0
0
0
0
0
15
300
60
100
100
40
10
10
100
25
25
25
25
4
6
2
6
5
1
2
0
0
2
2
2
0
0
2
1
2
0
2
1
0
0
0
2
0
0
0
2
2
0
115
Strategy
Output 2.1.4: Trained staff at
SEC and staff at regional
testing centre
Output 2.1.5: Completed

awareness enhancement
programmes for policy
makers, academicians,
replications

promotional campaign for
CSH
Output 2.1.7: Established

Concentrating Solar Heat
Technology Platform and is
operational

Masters level course available on CSH by year 3
Number of personnel trained in international training
programmes organized and conducted by year 2
Number of national training programmes organized
and conducted by year 2
Number of personnel trained in national training
programmes by year 2
Number of conferences organized and held by year 4
Number of participants in conferences by year 4
Number of international participants in the completed
conferences by year 4
Number of papers presented in conferences by year
4
Number of awareness programmes organized and
conducted by EOP
Number of participants in organized and conducted
awareness programmes by EOP
Number of advertisements about CSH placed on
print media under the project by year 3
Number of industrial clusters in which hoardings are
displayed by year 3
An officially established CSH Technology Platform by
year 1
platform in addressing issues/problems concerning
energy performance and improvements of CSH
systems by EOP
No. of CSH system
manufacturers/suppliers/distributors that make use of
the platform in addressing issues/problems
concerning the market of CSH products by EOP
1
5
0
0
Annual Targets
3
0
1
5
0
10
2
200
20
Target
5
0
0
0
0
10
0
0
0
1
100
10
0
0
0
1
100
10
0
0
0
20
10
10
20
08
12
20
1,600
400
400
400
400
400
10
01 Jan 12
01 Jan 12
100
15
25
30
30
15
116
Strategy

% of newsletter recipients expressed it is useful by
EOP
% of users satisfied with compendium and find it
useful by EOP
Output 2.2.1: Documentation
Cumulative number of newsletter issues prepared
on the project outputs, case
and disseminated by EOP
studies, best practices and
No. of copies of each newsletter issue circulated to
lessons learnt disseminated to CSH stakeholders (CSH system manufacturers,
ensure larger replication
suppliers, importers, installers, maintenance service
providers and users)starting year 1
Audio-visual capsule uploaded and accessible from
project website by year 3
No. of users of the audio-visual capsule by the EOP
Project website established and operational by year 1
No. of CSH stakeholders that use the project website
for information each year starting year 1
No. of brochures on CSH technology applications
produced and disseminated by EOP
compendium41 by EOP
Outcome 3.1: Increased
number of commercial and
near-commercial CSH
technologies for diversity of
applications
packages applied in demonstration and replication
projects by EOP
Outcome 2.2: CSH Project

deliverables facilitated and/or
influenced the widespread
replication of CSH
technology applications in
India
41
60
80
6
0
Annual Targets
3
8
10
0
0
70
70
18
Target
5
12
0
24
80
70
70
200
200
200
200
200
200
01 Jan 14
01 Jan 14
1,000
01 Jan 12
2,000
0
01 Jan 12
2,000
0
0
2,000
200
0
2,000
300
0
2,000
500
0
2,000
90
14
18
24
28
1,000
1,000
60
10
12
24
117
Strategy
feasibility studies for
demonstration and replication
projects of various CSH
technology applications
Detailed Project Reports
(DPRs) for demonstration
projects
Output 3.1.3: Developed and
commissioned demonstration
projects in at least 5 sectors
Output 3.1.4: Results of the
performance monitoring,
analysis, and evaluation for
Outcome 3.2: Improved

technical and economic
performance of commercial
and near-commercial CSH
technologies in an increased
Output 3.2.1: Documentation

of results of demonstration
and replication projects
Target
Annual Targets
3
30
40
Number of completed feasibility studies that were

supported by the project by year 4
90
10
Number of completed DPRs for demonstrations that

were funded and implemented under the project by
year 4
30
10

commissioned by EOP
No. of CSH technology application demo projects
that were operational by EOP
reports of the demonstration projects prepared by
EOP
No. of implemented CSH technology application
demo projects whose operational and energy
performances are at least the same or better than as
per design by EOP
demo projects whose financial and economic
per design by EOP
No. of demonstrated CSH technologies replicated by
EOP
No. of companies where CSH technologies are
successfully applied by EOP
No. of implemented demo and replication projects
whose performance data is as per feasibility study by
EOP
Number of demonstration project profiles prepared by
EOP
30
30
5
10
10
10
12
12
30
16
15
15
60
10
12
24
90
14
18
24
28
90
14
18
52
90
10
30
30
20
30
16
118
Strategy
Target

No. of performance monitoring reports of demo and
90
0
analysis and overall
Overall evaluations of demonstration and replication
2
0
evaluation for demo and
projects completed by EOP
No. of potential and feasible financial options for the
2
0
understanding of the financial
application of CSH technologies identified and
viability of CSH technologies
promoted by EOP
and measures to mitigate
No. of replication projects that use financial options
30
0
investment risks
by EOP
2
0
finance CSH projects by EOP
Output 4.1.1: Documented
No. of completed financial viability analysis of CSH
1
0
financial viability of CSH
technologies and applications by year 3
Analysis of alternative financial options by year 3
1
0
and mitigation approaches of
investment risks
Outcome 4.2 Promulgation of
No. of implemented CSH projects that benefitted
28
0
favourable financial policies
from the enforced policy and regulatory regimes on
that promote increased use
CSH technology applications by EOP
and promotion of CSH for
low and medium temperature
2
0
process heat applications
Output 4.2.1 Formulated
recommendations for financial
and promotional policies and
strategies for adoption by
Government of India
No. of policy studies completed for inputs in the

formulation of policies supportive of CSH system and
application projects by year 3
Annual Targets
3
6
14
5
18
52
10
10
10
28
119
MONIQUE BARBUT
GLOBAL ENVIRONMENT FACILITY

INVESTING lN
OUR
Chief Executive Officer and Chairperson
PLANET
1818 HStreet, NW
Washington, DC 20433 USA
Tel: 202.473.3202
Fax: 202.522.3240/3245
E-mail: mbarbutTheGEF.org
November 22, 2011
Dear Council Member,

The UNDP as the Implementing Agency for the project entitled: India: Market
Development and Promotion of Solar Concentrators based Process Heat Applications in
India, has submitted the attached proposed project document for CEO endorsement prior to final
Agency approval of the project document in accordance with the UNDP procedures.
The Secretariat has reviewed the project document. It is consistent with the project
concept approved by the Council in March 2010 and the proposed project remains consistent
with the Instrument and GEF policies and procedures. The attached explanation prepared by the
UNDP satisfactorily details how Council's comments and those of the STAP have been
addressed.
We have today posted the proposed project document on the GEF website at
www.TheGEF.org for your information. We would welcome any comments you may wish to
provide by December 22, 2011 before I endorse the project. You may send your comments to
gcoordination(a)TheGEF .org .
If you do not have access to the Web, you may request the local field office of UNDP or
the World Bank to download the document for you. Alternatively, you may request a copy of the
document from the Secretariat. If you make such a request, please confirm for us your current
mailing address.
Sincerely,
Attachment:
Copy to:
Project Document
Country Operational Focal Point
GEF Agencies, STAP, Trustee
REQUEST FOR CEO ENDORSEMENT/APPROVAL

PROJECT TYPE: FULL-SIZED PROJECT
THE GEF TRUST FUND
Date of submission: July 5, 2011
Date of re-submission: October 10, 2011
PART I: PROJECT IDENTIFICATION
INDICATIVE CALENDAR
Milestones
Expected Dates
Work Program (for FSP)
Mar 2010
CEO Endorsement/Approval
Nov 2011
GEF Agency Approval
Dec 2011
Implementation Start
Jan 2012
Mid-term Review
Jun 2014
Implementation Completion
Dec 2016
GEFSEC PROJECT ID: 4134

PROJECT DURATION: 5 Years
GEF AGENCY PROJECT ID: 4284
COUNTRY (IES): India
PROJECT TITLE: Market Development and Promotion of
Solar Concentrators based Process Heat Application in
India (India CSH)
GEF AGENCY (IES): UNDP
OTHER EXECUTING PARTNERS: Solar Energy Centre, Ministry of New and Renewable Energy, Government of
India
GEF FOCAL AREAS: Climate Change
GEF-4 STRATEGIC PROGRAM(S): SP3 - Promoting Market Approaches for Renewable Energy
NAME OF PARENT PROGRAM/ UMBRELLA PROJECT: N.A.
A. PROJECT FRAMEWORK
Project Objective: Increased use and promotion of CSH systems for low and medium temperature process heat
applications
Project
Components
1. Technical
capacity
development
Inv.,
TA or Expected Outcomes
STA2
TA
2. Awareness
TA
enhancement and
capacity building
1.1. Enhanced
understanding of
CSH technologies,
applications and
markets
1.2. Adoption of
standards and
specifications for
guidance of
manufacturers and
users for assurance of
CSH quality, safety,
and performance
1.3. Adequately
capable and
operational testing
laboratories for
verification of
manufacturer claims
and guidance of CSH
users to enable
informed decisions
2.1. Strengthened
technical capacity
and awareness of
stakeholders of CSH
systems for
industrial/
heat applications
Expected Outputs
1.1.1. Developed technology
application information
packages and characterised
and markets
1.2.1. Developed CSH
1.3.1. Developed CSH system
components and equipment
testing facilities
2.1.1. Trained manufacturers/

vendors, installers and CSH
users
2.1.2. More trained technical
consultants that provide
technical services to both
CSH system components &
equipment manufacturers and
CEO Endorsement Template-December-08.doc 11/22/2011 5:56:44 PM
GEF Financing1 Co-Financing1

Total ($)
c=a+ b
($) a
%
($) b
%
831,525 62
516,075 38 1,347,600
1,248,180
78
354,400
22 1,602,580
2.2. CSH project

deliverables
facilitated and/or
influenced the
widespread
replication of CSH
technology
user
2.1.3. Established and
programmes to build future
technical capacities
2.1.4. Trained staff at SEC
and staff at regional testing
centre
2.1.5. Completed awareness
enhancement programmes for
policy makers, academicians,
replications
2.1.6. Completed promotional
campaign for CSH
2.1.7. Established
Technology Platform and is
operational
2.2.1. Documentation on the
project outputs, case studies,
best practices and lessons
learnt disseminated to ensure
larger replication
3. Pilot
3.1.1. Completed feasibility
TA/In 3.1. Increased
demonstration of v.
number of
studies for demonstration and
CSH
commercial and near- replication projects of various
technologies for
commercial CSH
CSH technology applications
various
technologies for
3.1.2. Completed Detailed
applications
diversity of
applications
3.2. Improved
3.1.3. Developed and
technical and
commissioned demonstration
economic
performance of
3.1.4. Results of the
commercial and near- performance monitoring,
commercial CSH
analysis, and evaluation for
technologies in an
increased diversity of 3.2.1. Documentation of
applications
results of demonstration and
3.2.2. Completed performance
monitoring, analysis and
overall evaluation for
projects
4. Sustainable
4.1. Enhanced
4.1.1. Documented financial
TA
financial
understanding of the viability of CSH technologies,
approach in the
financial viability of applications, and mitigation
adoption of CSH
CSH technologies
approaches of investment
technologies and
and measures to
risks
applications in
mitigate investment 4.2.1. Formulated
India
risks
recommendations for financial
4.2. Promulgation of and promotional policies and
1,968,245
10 18,000,0001
104,100 100
90 19,968,245
104,100
The project cost of solar concentrator installation in industrial unit will essentially have the funding from three streams namely,
grants (subsidy from MNRE), equity from industrial unit, and loan from financial institution (IREDA has given a letter of support).
favourable financial strategies for adoption by

policies that promote Government of India
increased use and
promotion of CSH
technologies for low
and medium
temperature process
heat applications
5. Project management
Total project costs
1
2
247,950
4,400,000
34
19
479,525
19,350,000
66
727,475
81 23,750,000
List the $ by project components. The percentage is the share of GEF and Co-financing respectively of the total amount for the component.
Inv. = Investments, TA = Technical Assistance; STA = Scientific & Technical Analysis.
B. SOURCES OF CONFIRMED CO-FINANCING FOR THE PROJECT (expand the table line items as necessary)
Project
Name of Co-financier
%*
Classification
Type
(USD)
(source)
MNRE
Government
Grant Subsidy
6,000,000
31
In Kind
1,350,000
7
Industries
Private
In Cash
6,000,000
31
Financial Institutions
Private
In Cash
6,000,000
31
19,350,000
100
Total co-financing
*Percentage of each co-financiers contribution at CEO endorsement to total co-financing.
C. FINANCING PLAN SUMMARY FOR THE PROJECT ($)

Project Preparation
a
GEF Grant
Co-financing
(Cash & Kind)
Total
Project
b
Total
c=a+b
100,000
4,400,000
4,500,000
100,000
19,350,000
19,450,000
200,000
23,750,000
23,950,000
Agency Fee
450,000
For comparison:
GEF and Cofinancing at PIF *
4,400,000
19,350,000
450,000
23,750,000
* Excluding Agency Fee

D. GEF RESOURCES REQUESTED BY AGENCY(IES), FOCAL AREA(S) AND COUNTRY(IES)1 N.A.
E. CONSULTANTS WORKING FOR TECHNICAL ASSISTANCE COMPONENTS:
Component
International consultants*
Local consultants*
Total
Estimated
person weeks
(GEF)
74.50
1,288.16
1,362.66
GEF amount
($)
223,500
966,120
1,189,620
Co-financing
($)
Project total
($)
0
139,125
139,125
223,500
1,105,245
1,328,745
GEF
amount
($)
126,000
30,000
57,500
Co-financing
($)
273,000
0
172,075
Project total
($)
399,000
30,000
229,575
34,500
247,950
34,500
479,525
68,900
727,475
* Details to be provided in Annex C.
F. PROJECT MANAGEMENT BUDGET/COST

Cost Items
Local consultants*
International consultants*
Office facilities, equipment,
vehicles and communications**
Travel**
Total
Total Estimated
person weeks
(GEF)
168
10
178
* Details to be provided in Annex C.
** (a) Cost of office space rental for the PMU, equipment such as computers and their peripherals, document reproduction
equipment as well as office supplies (e.g., stationeries), purchase and use of telecommunication equipment and the monthly
payment for the communication costs (e.g., phone bills, internet service fees, etc.). (b) Travel expenses for the Project
Personnel (including Component Managers) for their project monitoring work across various states India.
G. DOES THE PROJECT INCLUDE A NON-GRANT INSTRUMENT? Yes
No
H. DESCRIBE THE BUDGETED M &E PLAN:

The following main project monitoring and evaluation activities will be carried out: (1) Measurement of means
of verification for project progress and performance (baseline and impact analysis); (2) Annual project
reporting, including project implementation review (PIR); (3) Tripartite review meetings; (4) Periodic status
reporting; (5) Audits; (6) Mid-term external review; (7) Final (Terminal) external review; and, (8) Visits to field
sites. These activities have been included in the budget under project management. The GEF budget allocation
for M&E is USD 200,000 (details are provided in Section 14 of the UNDP Project Document).
Type of M&E activity

Inception Workshop
and Report
Measurement of
Means of Verification
of project results
(baseline and end-ofproject impact study)
Measurement of
Means of Verification
for Project Progress on
output and
implementation
ARR/PIR
Periodic status/
progress reports
Mid-term Evaluation
Responsible Parties
Implementing Partner (National

Project Director and National
Project Coordinator)
UNDP CO
UNDP GEF RTA/Project
Coordinator will oversee the hiring
of specific studies and institutions,
and delegate responsibilities to
relevant team members.
Oversight by National Project
Coordinator
Project team

UNDP CO
UNDP RTA
UNDP EEG

UNDP CO
UNDP RCU
External Consultants (i.e. evaluation
team)
NPD, NPC and Project team,
UNDP CO
UNDP RCU
External Consultants (i.e. evaluation
team)
UNDP CO
local consultant
UNDP CO
UNDP CO
UNDP RCU (as appropriate)
Government representatives
Final Evaluation
Project Terminal
Report
Audit
Visits to field sites
Budget USD ($)

Excluding project team staff
time
Time frame
Within first three months
of project start up
Start, mid and end of

project (during
evaluation cycle) and
annually when required.
Annually prior to
ARR/PIR and to the
definition of annual work
plans
(To be determined more

precisely) as part of the
Annual Work Plan's
preparation.
Already included in the PMU
cost
Annually
Already included in the PMU

cost
Quarterly

before the end of project
implementation
None

before the end of the
project
Yearly
Indicative cost per year: $

3,000
For GEF supported projects,
paid from IA fees and
operational budget
At the mid-point of
project implementation.
Yearly
Type of M&E activity
Responsible Parties
Total Indicative Cost

Excluding project team staff time and UNDP staff and travel
expenses
Budget USD ($)

Excluding project team staff
time
US$ 200,000
(4.54% of Total Budget)
Time frame
PART II: PROJECT JUSTIFICATION:

A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL
ENVIRONMENTAL BENEFITS TO BE DELIVERED:
India is currently the second fastest growing major economy and is the fourth largest in the world in purchasing
power parity (PPP) terms, with steady progress achieved since the start of economic liberalisation reforms in
19912. The International Monetary Fund (IMF) predicts 8.3 % growth for India for the year ending 31 March
20113. The Eleventh Five-Year Plan (2007-2012) predicts an energy demand of 547 Mtoe in 2011-12 and
between 1,350-1,700 Mtoe by the year 2030. The per capita primary energy consumption in India in 2008 was
540 kgoe/year4, which is well below that of developed countries. While the countrys per capita energy
consumption will remain much lower than that of industrialized countries for the foreseeable future, Indias
total energy consumption is expected to continue to increase significantly for many decades as it continues to
develop.
The industrial sector is the second largest energy consuming sector in India after the residential sector. Indias
industrial sector demand was 114.8 Mtoe of energy in 2008, which is 28% of total national energy demand5.
Indias industrial energy demand is projected to grow at a rate of 4.7% per year between 2005 and 2015.
International Energy Agency (IEA) projections are that the industrial sectors energy demand will increase to
34% of Indias total energy demand in 20306. Electricity is a relatively smaller constituent of industrial energy
demand compared to other major economies; in 2008, only 21% of industrial energy demand was in the form of
electricity. The rest of the demand was met by fuels coal, biomass, oil products and gas, which indicate that a
large amount of energy in the industrial sector is used to provide thermal energy/heat. Key energy using
industries (such as, pharmaceuticals, chemicals, metal treatment, textiles, and food and dairy processing) have a
significant requirement for low - medium temperature heat (up to 250oC) as steam, hot water, hot air, and hot
oil. Significant quantities of low - medium temperature process heat are also required in the commercial sector
in hotels, hospitals and other institutional buildings for space cooling, cooking and space heating. The low medium temperature heat is primarily provided in India by fuel oil, coal (for larger heat loads), biomass, and
electricity for cooling.
India has a generally very good solar energy potential of around 5-7 kWh/m2/day. A significant part of Indias
low-medium temperature process heat needs can be met by concentrating solar heat (CSH) technology systems
- alongside process integration and suitable heat storage. This would reduce global CO2 emissions, local air
pollution, and Indias growing dependence on expensive and insecure imported oil.
Solar concentrator systems use lenses or mirrors to focus a large area of sunlight onto a small area and thus it is
possible to achieve higher temperatures than are possible with non-concentrator technologies. Since the first oil
shocks of the modern era (1973/74 and 1979/80) a range of solar concentrator technologies have been
developed and deployed, with a primary focus on power applications (concentrator solar power CSP).
Concentrated solar heat (CSH) applications use the same basic mirrors and technologies as CSP applications but
can be much less expensive as only 120-250oC fluid temperatures are required (the focus of the UNDP GEF
MNRE CSH project) rather than the much higher temperatures required for viable CSP projects.
http://en.wikipedia.org/wiki/Economy_of_India
http://www.ibef.org/artdisplay.aspx?tdy=1&cat_id=60&art_id=27253
4
5
International Energy Agency, http://www.iea.org/stats/balancetable.asp?COUNTRY_CODE=IN accessed on 15.01.2011
6
International Energy Agency World Energy Outlook 2007
3
India accounts for 70 of around 100 CSH applications installed worldwide to date. India is one of the most
promising countries for CSH large scale deployment as many of its industries are at a small and medium scale, a
scale below where coal fired thermal heat supply systems are best deployed, and where clean burning,
controllable and low cost natural gas is not widely reticulated to industrial zones as is the case in many other
countries. CSH technologies and applications have experienced growing interest and a large increase in actual
working applications from around the year 2000 as global oil prices have risen with the gradual end of low cost
light sweet crude conventional global oil supply capacity.
In practice, the world-wide experience to date in actual working CSH applications is rather limited. A survey
conducted under the IEA Task 33 Solar Heat for Industrial Processes in 2007, showed that there were then
only around 10 CSH installations world-wide (the survey excluded India). As per the most updated information
from MNRE, there are around 70 CSH installations in India. It is estimated that there are around 100 working
CSH installations worldwide. This places India as the leading countries in the practical CSH market deployment
domain. India is well positioned to lead the world in practical CSH technology deployment in the foreseeable
medium term (5 -10 years) future.
The Ministry of New and Renewable Energy (MNRE) of the Government of India (GOI) is currently supporting
Concentrating Solar Heat (CSH) installations for process applications in India with a subsidy scheme that is
based on CSH collector area. The total area for the 71 CSH systems which have been commissioned or are
under installation in India is about 20,000 m2. However, the deployment of CSH installations in India continues
to be slow due to a range of inter-twined barriers, as follows:
Technology related barriers

o The full set of concentrated solar technologies developed and available worldwide for process
heat (CSH) applications are yet to be demonstrated in India
o Non-availability of a full range of CSH technology application packages in India
o Non-availability of performance measurement standards and protocols for measuring CSH
systems performance
o Non-availability of testing facilities for CSH technologies
Awareness and capacity barriers
o Lack of awareness amongst industry (including top level management levels) and policy
makers on the potential of CSH applications to reduce process heat supply costs
o Limited capacity of the CSH technology supply chain
o Lack of knowledge of CSH technologies and system factors amongst technical consultants to
applicable industries and sectors in India
o Limited availability of skilled and semi-skilled technical manpower in the CSH industry
o Limited interface between the CSH industry and applicable academic institutes
o Limited interface/interaction between international CSH industry/experts and Indian CSH
industry/experts
Demonstration and replication barriers
o A wide range of CSH technology application packages are yet to be demonstrated in India
o No public domain documentation is yet available for existing CSH applications
Financial barriers
o Low payback on CSH investments
o Lack of incentives based on CSH performance
This UNDP GEF MNRE CSH project has been designed as a fully integrated and suitably funded and cofunded series of components and activities to remove the multiple barriers facing the widespread adoption of
CSH technologies and applications in India. The project has been designed to fully support and compatible with
the on-going MNRE CSH support programme.
The proposed UNDP GEF MNRE CSH project will remove the key barriers (summarised as above) to enable
the annual collector area of new CSH applications in India to be increased 6-8 times in the five-year project
duration. The overarching rationale for the project is to position the Indian CSH industry for further on-going
sustained growth after the formal end of this UNDP GEF MNRE CSH project. More specifically, the proposed
project will:
(1) Address technology package barriers by supporting the development of 10 technology information
packages for commercial CSH deployment in selected key specific sectors. The technology information
packages will each refer to one or more of the five applicable CSH technologies that match the required
process temperature, available CSH area for deployment, and other specific CSH and process attributes.
These technology information packages will include: descriptions of the applicable process heat
requirements in the relevant sector; related process integration and energy efficiency considerations that
should be considered alongside the CSH technologies; any heat storage requirements and applicable
heat storage technologies; estimated CSH costs and expected performance; the results of previous CSH
applications in the applicable sector (if any) in India or internationally; and any lessons learned to date.
(2) Address awareness and capacity building barriers to the increased uptake of CSH in India by improving
the awareness of CSH technologies and applications amongst key stakeholders, as well as increasing
the capacity of all those involved in the CSH supply chain in India. These awareness and capacity
building activities will include: increasing the capacity and awareness of CSH amongst current and
prospective system manufacturers, vendors, energy auditors and advisors and other relevant
professionals; increasing the knowledge base of relevant CSH success factors and key issues amongst
academics, policy makers, and other CSH industry key stakeholders; undertaking promotional
campaigns for CSH; promoting enhanced academic-industry partnerships; obtaining high-level
management commitment to trialling CSH applications in relevant sectors; and documenting and
disseminating best practices and lessons learnt. This will then ensure the wider on-going post projectend replication of CSH applications in India.
(3) Identify, implement and document the results from 30 demonstration projects to illustrate CSH
technology applications in specific and real commercial field applications in India. In addition, 60 CSH
replication projects will be supported during the project implementation. The replication projects
results will be also monitored (albeit at a lower level of detail than for the formal demonstration
projects). The results and lessons learned from the demonstration and replication projects will be
incorporated in updated technology information packages and other materials during the latter stages of
this UNDP GEF MNRE CSH project. The technology information packages will provide the technical
basis for the 6-8 fold increase in annual CSH market installations that will be achieved by the end of
this project.
(4) Identify and remove financial barriers to the increase of the solar collector area of annual CSH
installations in India by a factor of 6-8 during the UNDP GEF MNRE CSH project implementation.
This will involve: documenting the actual financial and payback performance of CSH installations in
India; the development and support of an updated performance based MNRE CSH subsidy scheme; and
the support of additional CSH financing mechanisms and capacity building of relevant financial
institutions.
B. DESCRIBE
THE CONSISTENCY
PRIORITIES/PLANS:
OF
THE
PROJECT
WITH
NATIONAL
AND/OR
REGIONAL
India has a strong potential to accelerate the use of its renewable energy resources to power its growing
economy with more secure and affordable energy supplies. The Government of India recognizes that
development of local and renewable resources is critical to ensure that it is able to meet both its economic and
environmental objectives, and it has promoted this development through significant and on-going real policy
actions. The Ministry of New and Renewable Energy (MNRE) is the nodal ministry of the Government of India
for all matters related to new and renewable energy.
As of June 2010, India has over 17.5 GW of installed renewable energy capacity, which is approximately 10%
of Indias total installed capacity. Wind represents 11.8 GW, small hydro represents 2.8 GW, and the majority
of the remainder is from biomass installations. PV installations have reached 15 MW of cumulative capacity
installation for both on- and off-grid applications. In the current, Eleventh Five-Year Plan (Eleventh Plan; 2007CEO Endorsement Template-December-08.doc 11/22/2011 5:56:44 PM
2012), the Government of India targets capacity additions of 15 GW of renewable energy, which, if achieved,
would bring the cumulative installed capacity to over 25 GW in 2012.
In June 2008, Indias first National Action Plan on Climate Change (NAPCC) was released. It outlined existing
and future policies and programs addressing climate mitigation and adaptation. The NAPCC suggests that up to
15% of Indias energy could come from renewable sources by 2020. The NAPCC identifies eight core
National Missions running through to 2017. The Jawaharlal Nehru National Solar Mission (JNNSM) is part
of the NAPCC for CSH applications in India. The objective of JNNSM is to create a policy and regulatory
environment which provides a predictable incentive structure that enables rapid and large-scale capital
investment in solar energy applications and encourages on-going technical innovation and the lowering of solar
energy costs. Consistent with the JNNSM, MNRE is running a subsidy programme for CSH systems. The
JNNSM will adopt a 3-phase approach, spanning the remaining period of the 11th Five Year Plan (FYP) and
first year of the 12th FYP (up to 2012-13) as Phase 1, the remaining 4 years of the 12th Plan (2013-17) as Phase
2 and the 13th FYP (2017-22) as Phase 3. At the end of each FYP, and mid-term during the 12th and 13th Plans,
there will be an evaluation of JNNSM progress and a review of capacity and targets for subsequent phases to
be based on emerging cost and technology trends, both domestic and global. MNRE is running a subsidy
programme for CSH systems in the context of and to support the goals of the JNNSM.
C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS:
The proposed project conforms to the Strategic Programme (SP-3) Promoting Market Approaches for
Renewable Energy under the Climate Change focal area strategy of GEF-4.
D. JUSTIFY THE TYPE OF FINANCING SUPPORT PROVIDED WITH THE GEF RESOURCES:
Without support from GEF, MNRE would continue implementing its small CSH support programme. CSH
projects approved by MNRE for financial subsidy in the year 2006-07 only totalled 1,400 m2, with a marginal
increase to 1,732 m2 in 2009-107. In the absence of specific, integrated and multiple barrier removal actions,
installed capacity figures from new CSH applications are not expected to appreciably increase in the next five
years from the baseline situation. The necessary technology development and the economies of scale required to
increase awareness, underpin credibility, and reduce CSH prices to drive Indian CSH market growth by a factor
of 6-8 in the next 5 years, will only occur with the implementation of the integrated set of initiatives under this
India-CSH GEF project.
E. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES:
MNRE has been promoting solar water heating over last two to three decades. With MNRE being the executing
partner for the project, the UNDP GEF MNRE CSH project would be fully integrated with the on-going MNRE
programme on CSH and the Jawaharlal Nehru Solar Mission (JNNSM) of the Government of India. Other
initiatives such as Global Solar Water Heater Project, one of the focused countries is India, supported by
GEF/UNEP/UNDP apart from few other countries. This project is being implemented in India by MNRE to
accelerate the penetration of solar water heaters. MNRE is also involved in promoting industrial process heat
applications and solar thermal power generation. The UNDP GEF MNRE CSH project will also coordinate with
recently endorsed GEF UNIDO FSP, Promoting energy efficiency and renewable energy in selected micro
SME clusters in India in this regard as it has one or two interventions focusing solar concentrators in dairy
industries. Thus experiences from other projects will be shared, helps to leverage and complement the on-going
efforts as MNRE is the implementing or coordinating agency for most of such initiatives.
F. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH
INCREMENTAL REASONING :
The use of CSH for process heat applications is still at an early development stage - with less than 100 known
working examples worldwide. India is leading the world with around 71 CSH applications. Two CSH
technologies are now commercially available and proven in India, with annual CSH sales of around 2,000 m2/
year. The majority of Indian CSH installations are for institutional cooking; other existing CSH applications are
in dairy, food processing, metal treatment and space cooling. The Ministry of New and Renewable Energy
7
MNRE Annual Report 2006-07 and 2009-10
(MNRE) is already providing CSH subsidies and some technology support, but MNRE is not operating and does
not have a planned comprehensive barrier removal approach to facilitating large increases in CSH installations in
India. The UNDP GEF MNRE CSH project will complement MNREs efforts by removing CSH technology,
awareness, capacity, market and financial barriers. This will increase annual CSH sales to 15,000 m2/year by
2016. The projects Component 1 provides technology application packages, support for the introduction of three
further CSH technologies, and standardisation of CSH performance measurement; Component 2 provides
awareness and capacity building; Component 3 supports 30 demonstration projects (15,000 m2) and 60
replication projects (30,000 m2); while Component 4 addresses financial barriers. Direct emission reductions
from the demonstration and replication CSH projects during the 5-year GEF project duration will be 32,900
tCO2. Over the economic lifetime of 20 years for the project-supported CSH applications, cumulative direct
emission reductions will be 315,000 tCO2. Considering the total avoided GHG emission reductions that are
attributable to the project, the corresponding unit abatement cost (UAC8) (i.e. GEF$ per tCO2) is USD
13.97/tCO29.
After the completion of UNDP GEF MNRE CSH project completion, investments will be affected by the longterm outcomes of the barrier-removal activities, e.g. increase in technical capacity and sustainable financial
approach. The corresponding CO2 emissions reduction is referred to as indirect emission reduction. A replication
factor of 3 has been chosen as a conservative estimate for CSH systems use in process based heat applications.
Thus, indirect emission reductions (bottom-up) over 10-year are estimated at 315,000 t CO2 * 3 = 945,000 t CO2.
In the alternative scenario, it is estimated that about 50,000 m2 of CSH systems area is expected to deploy
annually. The cumulative amount of emission reductions achieved would be 1,095,150 t CO2 over the period
2011/12-2025/26 (that is, a total duration of 15 years during the project implementation period and 10 years of
post-project scenario). Of course, this potential cannot be fully attributed to the GEF interventions alone as other
projects may have an influence over the CSH systems promotion and implementation. Uptake of CSH
technologies would also takes place to some extent due to on-going (and future) national efforts and future
donor-funded initiatives. It is proposed to apply conservatively a causality factor 4 of 80%. This gives an
indirect emission reduction (top-down) of 1,095,150 t CO2 * 80% = 876,120 t CO2. The range of indirect CO2
emission reductions is 876,000 945,000 tonne CO2.
G. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S)
FROM BEING ACHIEVED AND OUTLINE RISK MANAGEMENT MEASURES:
A summary of risks and mitigation measures to address them is given in the UNDP ProDoc in Section 8 and in
its Annex A. The main risks and the mitigating actions are described in the table below.
Table 1: Overview of risks and the mitigating actions for the promotion of CSH systems
Risk
Level of
Risk
Mitigating Actions
- During FSP preparation, most Indian manufacturers have

been contacted and have shown interest.
- Throughout the project, there will be regular and
continued contact with manufacturers which should lead
to their interest and participation.
- As indicated by the international consultants, many
foreign manufacturers are very keen to enter the Indian
market.
- The project design also motivates and creates interest of
manufacturers.
Lack of interest from Indian and

foreign manufacturers of solar
concentrator technologies.
Only direct emission reductions are considered for 10 years of economic lifetime as per GEF guidelines. There are no direct postproject emissions pertain to the project. Therefore, GEF finance of USD 4,400,000/315,000 tCO2.
9
This value is relatively lower than the current CDM secondary CER price, which is about US$ 20/tonne CO2 (PointCarbon, 7
June)
Risk
Level of
Risk
Lack of interest from existing and

prospective users
Failure to obtain the necessary

cooperation (sharing of information,
accessibility for discussions) from
Indian manufacturers/users and foreign
manufacturers of solar concentrator
technologies
M
Professional capacity to develop

standards is limited and/ or
unavailable. Also, work on
development of standards is initiated in
parallel or is already underway in
national/ international standards
bodies.
Persons trained for testing are

transferred or assigned other
responsibilities
Testing facilities that are established
are not used.
Unavailability of national/
international experts to deliver training
Limited interest within academia in
Mitigating Actions
- Existing users would also be interested in the
improvement in performance of their systems as a result
of developments under the project, and thus would be
expected to be interested.
- Most existing users have received support from MNRE
for project implementation. Hence, informal influence
can be exercised
- All existing projects have only been possible with
support from MNRE, and prospective users will be aware
of their need to also secure support from MNRE. The
need for MNRE support will generate interest in the
UNDP/MNRE GEF India CSH project.
- Local manufacturers and users are already sharing some
information with MNRE as part of the process of
obtaining CSH subsidies for new CSH installations.
However, this information is not yet in the public
domain. Issues such as confidentiality of specific data
and aggregation of data such that the identity of
individual users is not revealed will need to be resolved
when linked to the realization of MNRE CSH subsidies.
- The interest of foreign manufacturers in the Indian
market will support the necessary cooperation as CSH
users try to utilize advanced CSH technologies at their
sites.
- Information requirements will be defined which are of a
non-proprietary nature
- Suitable standards for solar hot water heating systems
have been successfully developed, which indicates that
this necessary capacity exists in India.
- Work on standards for CSP is already underway and
there are many areas common to both CSP and CSH.
- The national standards body, BIS, is an important
stakeholder and will be a member of the Project Advisory
Committee. This will ensure the necessary coordination
of actions.
- Through BIS, contact and follow-up with the relevant
international standards body (ISO) will be maintained.
- Since several persons will be trained, if some of them are
transferred it may lead to a temporary slowdown but will
not lead to a complete stoppage of testing.
- As the CSH industry grows, there will be greater
recognition by both manufacturers and users of the need
and value of testing.
- Development of standards undertaken under this project,
and the regulatory requirement of conformity of CSH
installation with such standards will also drive the need
for testing.
- Proper planning along with prior commitments from /
agreements with national and international experts for
their availability for trainings.
- Under the Jawaharlal Nehru National Solar Mission
10
Risk
Level of
Risk
undertaking research in CSH area.
Failure to trigger positive responses

from energy efficiency / renewable
energy consultants and other such
service providers for their involvement
and development of capabilities in
CSH area.
Feasibility studies and Detailed project
reports do not get converted into
prospective projects.
The MNRE CSH subsidy scheme is
discontinued or changed substantially
or the users may not be agreeable or
willing to the stipulated terms and
conditions for receiving support, hence
may not opt for scheme.
Delay in commissioning of
demonstration and replication projects
and availability of results
demonstration and replication project
participants do not comply fully with
the stipulated terms and conditions.
CSH industry growth is limited due to
greater growth of CSP industry arising
from greater policy emphasis, greater
interest of manufacturers, and larger
scale of CSP projects.
Mitigating Actions
(JNNSM), MNRE is supporting the introduction of
renewable energy courses in universities which should
lead to greater faculty interest.
- The response will depend on industry growth and their
perception of business opportunities in CSH. The
promotion and development activities of MNRE under
the Jawaharlal Nehru National Solar Mission and of this
project should lead to improved perception.
- By defining suitable selection criteria for providing
support for these studies, projects having greater
likelihood of implementation will be supported.
- MNRE has been extending financial support for CSH
applications for a finite period now since its inception.
The Jawaharlal Nehru National Solar Mission, under
which this support is being extended now, is part of the
National Action Plan on Climate Change. Hence, there is
less likelihood of abrupt changes in such policies.
- The users are generally aware of and familiar with the
terms and conditions of the existing schemes
- The status of projects will be regularly reviewed and any
necessary corrective steps will be promptly taken.
- Support will be terminated to projects which are not in
compliance, and there will be provisions for cost
recovery in such cases. Other projects will then be
considered for support.
- Over the time frame of the project, this may have limited
impact, but in the long term, this is a distinct possibility
which will have to be addressed as both markets develop.
The above table is further described in detail in Annex A, Part C of the UNDP Project Document (ProDoc).
H. EXPLAIN HOW COST-EFFECTIVENESS IS REFLECTED IN THE PROJECT DESIGN:
This UNDP GEF MNRE CSH project has been designed as a fully integrated and suitably funded and cofunded series of components and activities to remove the multiple barriers facing the widespread adoption of
CSH in India.
India is heavily dependent on import of fossil fuel to meet the growing thermal energy demand for process
based heat applications in various industries, communities and commercial establishments. The country has the
potential to harvest renewable energy resources, especially solar energy, to contain the fossil fuel use as well as
mitigate GHG emission reductions through reduced fossil fuel use. The Government of India recognized the
potential and benefits of deploying CSH technologies. The estimated potential is about 5,000 trillion kWh per
year. The incident solar energy over Indias land area is at an average of 5-7 kWh/m2/day. The market
development and promotion of solar concentrators for process heat and other thermal applications is an
emerging and exciting market opportunity in India, and is the target of UNDP GEF MNRE CSH project. With
the various interventions that will be carried out under this proposed project and the expected outputs, it is
11
estimated that by the end of this project, for each m2 area of solar concentrator installations, 0.35 t CO2 per year
would be replaced on a conservative basis. The proposed project will facilitate the realization of these outcomes
through the barrier removal activities and other capacity building and technical assistance activities that will be
implemented under the project. Therefore, the approach of replacing fossil fuel use through solar concentrator
technology is considered as more appropriate, holistic and cost effective considering the fact that process heat
and other thermal applications in industries, communities and commercial establishments is quite large.
In the absence of the UNDP GEF MNRE CSH projects interventions, the rate of penetration of CSH systems
will be at 3,000 m2 per year, the market for CSH systems would remain at or around the current modest level of
sales, the number of CSH technology application packages will remain limited, there will not be any systematic
effort to develop the market for CSH technologies, the human-resource base will remain small and inadequate,
and the number of active CSH manufacturers will remain small and inadequate.
The GEF contribution of USD 4.4 million will result in direct emission reduction of 32,900 tCO2 from the
demonstration (15,000 m2) and replication projects (30,000 m2) during the 5-year lifetime of the project.
Assuming the economic lifetime of the CSH systems is 20 years, the cumulative direct emission reduction will
be 315,000 tCO2. Dividing the GEF contribution (USD 4.4 million) by the combined direct and direct postproject emission reductions gives a corresponding unit abatement cost (UAC) (i.e. GEF$ per tCO2) of USD
13.97/tCO2.
PART III: INSTITUTIONAL COORDINATION AND SUPPORT

A. INSTITUTIONAL ARRANGEMENTS:
With MNRE being the executing partner for the project, the UNDP GEF MNRE CSH project will be fully
integrated with the on-going MNRE programme on CSH and the Jawaharlal Nehru Solar Mission of
Government of India. The project will establish the necessary communication and coordination mechanisms
through its PMU (see further section 13 of UNDP ProDoc).
B. PROJECT IMPLEMENTATION ARRANGEMENTS:
The project will be implemented by MNRE, and MNRE will assume the overall responsibility for the
achievement of the project results as the Implementing Partner (GEF Local Executing Agency). UNDP will
provide overall management and guidance from its New Delhi Country Office and the Asia Pacific Regional
Centre (APRC) in Bangkok, and will be responsible for monitoring and evaluation of the project as per normal
GEF and UNDP requirements. MNRE will designate a senior official as the National Project Director (NPD)
for the project. The NPD will be responsible for overall guidance to project management, including adherence
to the Annual Work Plan (AWP) and achievement of planned results as outlined in the ProDoc, and for the use
of UNDP funds through effective management and well established project review and oversight mechanisms.
The NPD will also ensure the necessary coordination with various ministries and agencies provide guidance to
the project team to coordinate with UNDP, review reports and look after administrative arrangements as
required under the Government of India and UNDP.
A Project Management Unit (PMU) shall be established to implement the project. The structure of the PMU is
given in Figure 1. The PMU will be headed by a full-time National Project Manager (NPM) and will be
responsible for implementing day-to-day activities in coordination with the National Project Director (NPD). If
required, the Ministry may appoint a senior officer as National Project Coordinator (NPC), who can focus on
key functions of internal liaising of the activities with NPD, administrative requirements, policy linkages,
linkages with ministry programmes. Efforts shall be made to mobilize the project team for the full project tenure
to ensure the availability of experts and consultants until the end of project. The NPM will be supported by two
Project Officers and Component Managers for component 3 of the project.
12
Project Management Board

UNDP
Implementing
partner
(MNRE)
Dept of
Economic
Affairs (DEA)
Project Advisory Committee (PAC)

Chaired by: MNRE
Members:
o Govt Agencies (MoEF, DEA, BEE, BIS, MSME)
o Others: Donors, Invitee etc.
o Technical experts
o CSH Industry: Industry association/ member
from proposed platform
Project Steering Committee (PSC)
National
Project
Director (NPD)
Chaired by: MNRE

Members: MoEF (GEF OFP office),
UNDP, DEA, other invitees (as and when
needed)

National Project
Manager (NPM)
Project Manager
(Awareness &
dissemination)
2 nos of Component
Managers
(Component 3)
Solar Energy
Centre (Output
1.3.1)
Project Manager
(Admin &
Accounts)
Figure 1: Project Implementation Organizational Chart
13
PART IV: EXPLAIN THE ALIGNMENT OF PROJECT DESIGN WITH THE ORIGINAL PIF:
During the PPG phase, five extensive stakeholder consultations were held at Pune, Delhi, Ahmedabad and
Hyderabad during the period November 17-30, 2010. More than 150 participants representing the CSH industry,
CSH users, energy consulting companies, MNRE, State Nodal Agencies, International and National Consultants,
Academic and research institutes, UNDP, Municipal Corporations have participated in the these consultations. This
had subsequently led to a fine tune and reorganization of outputs and related budget allocation. The overall
contribution of GEF and co-financing will remain the same. Apart from these changes re-positioning, re-budgeting
and editing the text of the various outputs in the project framework, there is no major re-alignment from the original
project design as presented in the PIF.
Table 2: Overview of Changes from PIF to ProDoc
Expected Outputs
GEF-Approved PIF
Project Document
Component 1. Technology
Component 1. Technical capacity
package development and
development
standardization
Outcome a) Technology
packages developed
Outputs:
a i) Four technology
packages developed at SEC
for process heat applications
(Fresnel, Scheffler, ARUN
Solar, and Concentrator
Trough).
a ii) The process integration
requirements for 5 sectors
identified and system
configuration established
outcome b) Standardisation and
certification facility developed
Outputs:
b i) Developing test
protocols for solar
concentrators for different
applications (for four
technologies and five
sectors).
b ii) Developing
performance guidelines for
the solar concentrator
packages for identified
sectors.
b iii) Developing Standards
for solar concentrator
technology packages
b iv) Establishing the
national certification facility
at SEC.
Component 2. Awareness
and Capacity Building
Outcome: Awareness and
Outcome 1.1. Enhanced

understanding of CSH technologies,
applications and markets
Output 1.1.1. Developed technology
application information packages and
characterised technologies,
applications, and markets
Outcome 1.2. Adoption of standards
and specifications for guidance of
manufacturers and users for
assurance of CSH quality, safety, and
performance
Output 1.2.1. Developed CSH
Outcome 1.3. Adequately capable
and operational testing laboratories
for verification of manufacturer
claims and guidance of CSH users to
enable informed decisions
Output 1.3.1. Developed CSH
system components and equipment
testing facilities
Component 2. Awareness and

Capacity Building
Outcome 2.1. Strengthened technical
Rationale for Changes in PIF Outputs/Activities

in the ProDoc
Rephrased to highlight the logical sequence of
outcomes and outputs with an emphasis on CSH
technologies and applications of CSH technologies
than CSH technologies alone
1.1.1 and 1.1.2 Rephrased to highlight the projects
enhanced emphasis on the applications of CSH
technologies through CSH technology application
packages which will include the consideration of
more than one CSH solar concentrator technology in
each package. This replaces the PIFs implicit view
that the application sectors and CSH solar
concentrator technologies would be considered
separately. Also now five CSH solar concentrator
technologies being included with the addition of the
CPC (Concentrating Parabolic Collector) technology
that was not considered at the PIF stage.
The CSH standards output activity description has
been simplified and made more results based, and the
testing facilities development activity has been
widened to include a regional test centre and testing
capacity being established in addition to that
developed at SEC.
Change in budget: There is a slight reduction in the
total budget for this component when compared to
the amount mentioned in PIF.
Component 2. Awareness enhancement and capacity

building
This is further split into two outcomes to emphasis
14
Expected Outputs
capacity and awareness of
technical capacity of the
stakeholders of CSH systems for
concerned stakeholders
developed and strengthened industrial/ institutional process heat
to plan, design, develop, use applications
Output 2.1.1. Trained manufacturers/
and manage solar
concentrators for industrial/ vendors, installers and CSH users
Output 2.1.2. More trained technical
institutional process heat
consultants that provide technical
applications in India.
services to both CSH system
components & equipment
Outputs:
manufacturers and user
a) Capacity of
manufacturers (producers of Output 2.1.3. Established and
solar concentrators)
developed/strengthened. At
programmes to build future technical
least 10 (existing or new)
capacities
b) Capacity development to
Output 2.1.4. Trained staff at SEC
assist as interface between
and staff at regional testing centre
manufacturers and users.
About 500 industry specific Output 2.1.5. Completed awareness
enhancement programmes for policy
consultants will be trained.
makers, academicians, industries,
c) Technical capacity
financial institutions, etc. to facilitate
building: Promoting
replications
industry academic
Output 2.1.6. Completed promotional
partnership. This will be
campaign for CSH
done through promoting
Output 2.1.7. Established
research programmes to
build future capacities for
replication and expanding to Technology Platform and is
operational
other sectors. (15
fellowships programmes
Outcome 2.2. CSH project
will be supported)
d) Developing the technical deliverables facilitated and/or
influenced the widespread replication
capacity of the staff at the
of CSH technology applications in
Solar Energy Centre.
India
e) Awareness programmes
Output 2.2.1. Documentation on the
for policy makers,
project outputs, case studies, best
academicians, industries,
financial institutions, etc. to practices and lessons learnt
disseminated to ensure larger
facilitate replications.
replication
f) Capacity building of
professionals (50 nos) to
develop Detailed Project
Report (DPR)
g) media campaign to
promote solar concentrators
h) Documentation and
dissemination of good
practices and lessons learnt
to ensure larger replication.
Component 3. Planning and Component 3. Pilot demonstration of
Operationalizing
CSH technologies for various
Demonstration projects
applications
Outcome: 30 demonstration Outcome 3.1. Increased number of
projects in 5 sectors
commercial and near-commercial
developed
CSH technologies for diversity of
applications
Outputs:
Output 3.1.1. Completed feasibility
a) Identification of
studies for demonstration and

information dissemination and knowledge sharing.
In specific:
2.1.1 Vendors of CSH systems have been added as
they will be the key CSH user interface, but noting
that not all vendors will necessarily be manufacturers
2.1.2 Technical consultants are now emphasized as a
key interface between manufacturers and users, and
their role rephrased as they will not necessarily have
an industry specific focus
2.1.3 No change
2.1.4 Regional testing centres added in addition to
SEC
2.1.5 Replications during project implementation are
supported by the project changes were made
accordingly
(f) Capacity building to develop DPRs dropped as
stakeholder feedback was that this is not required
2.1.6 Language widened from media campaign to
wider promotional campaign
2.1.7 New output added for the establishment of a
CSH focused industry body
Rephrased rest of the outputs in line with the
outcomes to highlight the logical sequence of
outcomes and outputs.
Change in budget: There is a slight increase in the

the amount mentioned in PIF.
Rephrased to emphasis both CSH technologies and

its applications
Changes made to reflect that replication projects will
be supported during the projects implementation in
the updated project design.
Rephrased rest of the outputs in line with the
outcomes to highlight the logical sequence of
15
Expected Outputs
replication projects of various CSH
demonstration sites/ units
technology applications
b) 30 Detailed Project
Output 3.1.2. Completed Detailed
Report (DPRs) for the
identified units developed
and approved
Output 3.1.3. Developed and
c) The system package
installed and commissioned commissioned demonstration
in 30 units.
Output 3.1.4. Results of the
d) Performance analysis
performance monitoring, analysis,
carried out, database
and evaluation for demonstration
established and lessons
projects
learnt documented and
disseminated
Outcome 3.2. Improved technical and
economic performance of
commercial and near-commercial
CSH technologies in an increased
Output 3.2.1. Documentation of
results of demonstration and
Output 3.2.2. Conducted
performance monitoring, analysis
and overall evaluation for
projects
Component 4. Identification Component 4. Sustainable financial
and removal of financial
approach in the adoption of CSH
barriers in the adoption of
technologies and applications in
solar concentrators
India
technology in India
Outcome 4.1. Enhanced
Outcome: New and viable
understanding of the financial
financial mechanisms to
promote solar concentrators viability of CSH technologies and
measures to mitigate investment risks
technology at a mass scale
Output 4.1.1. Documented financial
developed.
viability of CSH technologies,
applications, and mitigation
Outputs:
approaches of investment risks
a) Study present
promotional mechanisms
Outcome 4.2. Promulgation of
and identify financial gaps
and constraints and develop favourable financial policies that
promote increased use of CSH
financial mechanisms.
technologies for low and medium
b) Regional and national
temperature process heat applications
level consultations for
Output 4.2.1. Formulated
finalization of the financial
recommendations for financial and
strategy for adoption by
promotional policies and strategies
Government of India.
for adoption by Government of India
OTHERS
Project Management:
Project Management:

outcomes and outputs.
Change in budget: There is a slight increase in the

the amount mentioned in PIF as there is a slight
support for the replication projects as well.
Rephrased to emphasis both CSH technologies and

its applications
4.1.1 Present promotional mechanisms and financial

gaps were adequately studied in project preparation
phase, so emphasis is now on financial analysis and
mitigation of investment risks
4.2.1 Greater emphasis on developing
recommendations rather than on consultation aspects
that have been already largely covered in the project
preparation phase
Change in budget: There is a reduction in the total

budget for this component when compared to the
amount mentioned in PIF.
Change in budget: It is almost the same, but slight

reduction in the total budget for this component
when compared to the amount mentioned in PIF.
16
PART V: AGENCY(IES) CERTIFICATION

This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for
CEO Endorsement.
Agency
Coordinator,
Agency name
Andrew
Hudson
UNDP/ GEF
Officer-inCharge
Signature
Date
(Month,
day, year)
October
10th 2011
Project
Contact
Person
Martin
Krause,
UNDP
APRC,
Bangkok
Climate
Change
Mitigation
Telephone
Email Address
+66-22882722
Martin.krause@undp.org
17
ANNEX A: PROJECT RESULTS FRAMEWORK
The project will contribute to achieving the following Country Program Outcomes (as defined in CPD):
Outcome: Progress towards meeting national commitments under multilateral environmental agreements (CP, Outcome 4.3)
Output: Strengthened capacity for low carbon development and sustainable management of natural resources (CP, output 4.3)
Output indicators: Number of clean technologies/mechanisms piloted.
CPAP outcomes and indicators:
Outcome: Progress towards meeting national commitments under multilateral environmental agreements (CPAP, Outcome 4.3)
Output: Supporting national development objectives with co-benefits of mitigating climate change
Output indicators: (a) Annual reductions in greenhouse gas (GHG) emissions in India; (b) million USD flowing annually to India from
GEF through UNDP for this programme; (c) number of additional UNDP initiatives for achieving global and national targets under
multilateral environmental agreements.
Primary applicable key environment and sustainable development result area:
Strengthened national capacities to mainstream environment and energy concerns into national development plans
Applicable GEF strategic objective and program:
Strategic Objective: Off-grid renewable energy
Strategic Program: Strategic Programme (SP-3) Promoting Market Approaches for Renewable Energy under the Climate Change focal
area strategy of GEF-4
Applicable GEF expected outcomes:
Increased market penetration of CSH systems

Applicable GEF outcome indicators:
a) CO2 emission reductions (tonnes CO2) achieved
b) Installed area (m2) of CSH systems for process heat applications
18
Table 3: Project Planning Matrix (PPM)

Strategy
Indicator
Project goal: Reduced

GHG emissions from use
of CSH systems for low
and medium temperature
process heat
Cumulative CO2 emission reduced from start of

Project objective:
Increased use and
promotion of CSH
systems for low and
medium temperature
process heat applications

process heat applications (m2) by EOP
No. of companies that have installed CSH systems
by EOP
Baseline
0
Means of Gauging
Success
Target
32,900
20,000
80,000
71
161

available to market CSH technologies in India by
EOP
No. of companies that are potential users of CSH
packages in purchasing and installing CSH process
heat systems by EOP
18
30
60
71
131
90
15
Number of technology assessment reports of CSH

technologies by EOP

10
M&E reports of the

demonstration/replicatio
n projects
Timely execution of planned activities

with adequate resource mobilization.
Field performance is monitored and
recorded as per available guidelines.
Annual reports of
MNRE
Timely implementation of demo and

Selected end users for demos and
replications have sufficient equity and
financial position is good.
- Technology and
market assessment
the EOP
- Project impact
assessment report
- Annual reports of
MNRE
Processes and operations in different units

within a sector are similar.
State-level data for identified sectors is
available.
Cooperation is received from
manufacturers of 3 other CSH
technologies which are commercially
introduced in India.
Demonstration and replication projects
happen as scheduled and information is
available.
Cooperation is received from CSH users
in selected sectors.

Outcome 1.1:
Enhanced
understanding of
CSH technologies,
applications and
markets
information packages
and characterised
technologies,
applications, and
markets
- Reports available on
Performance
assessment of
existing installations
- Reports available on
technology
assessment of CSH
technologies
- Availability of report
on market assessment
for solar process heat
applications
- Project impact
19
Strategy
Outcome 1.2: Adoption

of standards and
specifications for
guidance of
manufacturers and
users for assurance of
CSH quality, safety,
and performance

CSH performance
standards and technology
specifications

Indicator
information packages developed by EOP
Baseline
Means of Gauging
Success
Target
No. of Indian CSH system components &

equipment manufacturers that comply with the BIS
standards and specifications by EOP
manufacturers that comply with ISO standards and
specifications for CSH systems by EOP
manufacturers that entered into the internal CSH
business (export of CSH components & equipment)
by EOP
A document of performance measurement standard
developed by year 2
30
10
Number of test protocols developed technology

specific by year 3
No. of minimum performance norms developed by

year 2

No. of technology specifications developed by EOP

taken up for consideration and adoption as draft
national standards by BIS by year 4

submitted to ISO as draft international standards by
year 4
assessment report
- Annual reports of
MNRE
- Technology and
market assessment
the EOP
- Project impact
assessment report
- Annual reports of
MNRE
- A report on
performance
measurement
standard available
of test protocols
available
- A report on
performance norms
available
- A report on field
performance
monitoring guidelines
available
of technology
specifications
available
- Confirmation from
BIS regarding
submission
- Standards issued as
BIS standards
- Confirmation from
ISO regarding
submission
- Standards issued as
ISO standards
20

accessibility for discussions) is received
from manufacturers of all 5 CSH
technologies.
Cooperation is received from users and
other stakeholders.
MNRE takes the lead in coordinating the
activity with BIS.
BIS takes a lead in pursuing the issue of
ISO standards for CSH with ISO.
Strategy
Outcome 1.3:
Adequately capable and
operational testing
laboratories for
verification of
manufacturer claims
and guidance of CSH
users to enable informed
decisions
CSH system components
and equipment testing
facilities

Indicator
manufacturers that approached testing laboratories
for certification by EOP
equipment manufacturers that approached Indian
testing laboratories for certification to enable their
systems sale in Indian market by EOP
Number of reports on proof-of-concept testing
carried out at SEC for at least three technologies by
year 4
Baseline
0
Target
2
28
18
30
0
0
60
10
15
Means of Gauging
Success
- Certification by a
certifying
/accrediting agency
- Project impact
assessment report
- Test reports produced
by testing facilities
Manufacturers submit their products for

testing.
No turnover of the personnel involved in
the proof-of-concept and testing
laboratories.
Decisions are taken as scheduled for the
establishment of test facilities.
- Number of reports
available on proof-ofconcept testing
carried out at SEC
respective
ministry/SEC
- Number of test
reports by national
testing facility
respective
ministry/SEC
- Number of test
reports by regional
testing facility

Outcome 2.1:
Strengthened technical
capacity and awareness
of stakeholders of CSH
systems for industrial/
heat applications

available to market CSH technologies in India by
EOP
No. of trained participants of test facilities that are
actively involved in the development of the CSH
technology development by EOP
No. of CSH technologies available in India by EOP
due to increased awareness and capacity
finance CSH projects and CSH system component
& equipment manufacturing as a result of the
awareness enhancement programs by EOP
No. of papers presented in conference that were
used by policy makers in decision making on
- Technology and
market assessment
the EOP
- Project impact
assessment report
- Annual reports of
MNRE
- Survey conducted
during conference
- Post conference
report and analysis
produced by
organizers of
conference
21
Strategy

manufacturers/ vendors,
installers and CSH users
Output 2.1.2: More

trained technical
consultants that provide
technical services to both
CSH system components
& equipment
manufacturers and users

Indicator
technology applications, in general, and CSH
technology applications, in particular, by year 4
% of conference participants expressed satisfaction
about the conference by EOP
Baseline
Means of Gauging
Success
Target
0
0
70
1


15
Number of personnel trained in the training courses

by EOP
300

specific aspects of CSH technologies from study
tour conducted under the project by year 2
10


Number of trained technical consultants by EOP
100
Number of Ph.D. fellowships supported by year 3
Training needs assessment completed by year 2
- Report on Training
needs assessment
available
- Three types of
training modules are
produced one each
for manufacturers/
vendors, installers
and CSH users
- Completion/posttraining reports of
training programmes
- After-training
evaluations
completed by
participants
- Completion/posttraining report of
study tour
- After-training
evaluation completed
by participants
- Training programme
calendar and
structure
- Training modules are
completed and
available
for training
programmes
- After-training
evaluations
completed by
participants
- Project impact
22

from manufacturers, vendors, users and
other stakeholders in identifying training
needs.
Targeted stakeholders, including energy
efficiency / renewable energy consultants
and other stakeholders, show willingness
for training and trigger positive response
from training programmes.
Industry will grow; hence there will be a
demand for training.
Arrangements are successfully made with
international organisations and
installations for visits and discussions.
Senior officials directly working in CSH
area are nominated and accepted for the
study tour.
Targeted stakeholders show willingness to
participate in study tour and part fund
their costs.
Suitable candidates will be interested in
Strategy
and supported industryacademic partnership
through research
programmes to build
future capacities

staff at SEC and staff at
regional testing centre

awareness enhancement
programmes for policy
makers, academicians,
institutions, etc. to
facilitate replications

Indicator
Number of M.Tech. fellowships supported by year
3
Baseline
0
Means of Gauging
Success
Target
6
0
0
2
6
Number of institutions where fellowships on CSH

technologies are supported by year 3
No. of universities/technical schools with Masters
level course (at least as elective) available on CSH
by year 3
Number of personnel trained in international

training programmes organized and conducted by
year 2
Number of national training programmes organized
and conducted by year 2
Number of personnel trained in national training
programmes by year 2
10
Number of conferences organized and held by year

4
Number of participants in conferences by year 4
200
Number of international participants in the

completed conferences by year 4
Number of papers presented in conferences by year
4
20
20
20
Number of awareness programmes organized and

conducted by EOP
20
assessment report
- Annual reports of
MNRE
- Reports published by
respective institutions
of (a) no. of
fellowships awarded
(b) no. of fellows
receiving degrees (c)
no. of fellows
sponsored by CSH
industry, (d) no. of
fellows absorbed in
CSH industry
- Completion report of
training programme
- After-training
evaluations
completed by
participants
- Conference
brochures, agendas,
completion reports
- Number of registered
participants
international
participants
- Number of abstracts /
conference
presentations /
conference papers /
posters submitted/
presented
exhibitors
for awareness
23
research fellowships.
Faculty will be interested in research in
CSH area.
Sufficient research areas/ topics are
identified by CSH industry.
Trained and qualified personnel are

retained in the test centres.
Suitable international organisation(s) to
conduct and host such training are
available and willing to participate.
Testing facilities at SEC are installed and
operational to conduct and host such
training.
CSH manufacturers, users, researchers,
policy makers and other stakeholders will
be interested and willing to share their
experiences and work, learn from that of
others, and initiate interactions of
commercial nature.
Targeted stakeholders show willingness to

examine and consider CSH options.
Strategy

Indicator
Baseline
0
Target
1,600
Number of advertisements about CSH placed on

print media under the project by year 3
Number of industrial clusters in which hoardings

are displayed by year 3
10

An officially established CSH Technology Platform

by year 1
01 Jan 12

platform in addressing issues/problems concerning
energy performance and improvements of CSH
systems by EOP
No. of CSH system
manufacturers/suppliers/distributors that make use
of the platform in addressing issues/problems
concerning the market of CSH products by EOP
100
15
Outcome 2.2: CSH

Project deliverables
facilitated and/or
influenced the
widespread replication
of CSH technology

% of newsletter recipients expressed it is useful by
EOP
% of users satisfied with compendium and find it
useful by EOP
0
0
60
80
70
70
Output 2.2.1:
Documentations on the
Project outputs, case
Cumulative number of newsletter issues prepared

and disseminated by EOP
No. of copies of each newsletter issue circulated to
18
200
Number of participants in organized and conducted

awareness programmes by EOP

promotional campaign
for CSH

Concentrating Solar
Heat Technology
Platform and is
operational
Means of Gauging
Success
programmes
- Post-programme
evaluations
completed by
participants
- Advertising agency
records
- Project impact
assessment report
- Annual reports of
MNRE
- Visit reports shared
by manufacturers
/suppliers
- Platform charter
document
- Number of members
and their distribution
(by type of
stakeholder, region
etc.)
- Number of meetings
held
Provided equitable role for different

stakeholder irrespective of their scale and
area of operation.
Stakeholders will come together to form
CSH Platform to further development and
growth of CSH industry.
- Project impact
assessment report
- Annual reports of
MNRE
- Web based feedback
for audio-visual
capsule
- Survey of recipients
of the published
compendium
- Number of people
visiting website
(click count)
Captured all the information, updated

knowledge and documented the results.
The web portal is created and operational.
24
Strategy
Indicator
CSH
stakeholders
(CSH
system manufacturers,
studies, best practices
suppliers, importers, installers, maintenance service
and lessons learnt
providers and users)starting year 1
disseminated to ensure
larger replication
Audio-visual capsule uploaded and accessible from
project website by year 3
No. of users of the audio-visual capsule by the EOP
Project website established and operational by year
1
No. of CSH stakeholders that use the project
website for information each year starting year 1
No. of brochures on CSH technology applications
produced and disseminated by EOP
compendium10 by EOP
Outcome 3.1: Increased
number of commercial
and near-commercial
CSH technologies for
feasibility studies for
demonstration and
replication projects of
various CSH technology
applications
Detailed Project Reports
(DPRs) for
10
Baseline
Means of Gauging
Success
Target
01 Jan 14
0
0
1,000
01 Jan 12
2,000
90
1,000

packages applied in demonstration and replication
projects by EOP
Number of completed feasibility studies that were
supported by the project by year 4
60
90
Number of completed DPRs for demonstrations that

were funded and implemented under the project by
year 4
30
- All the information

including audio
visual capsule of
project is available on
the web and
downloadable
- Hard and soft copy of
the brochure booklet
available
- Project impact
assessment report
- Feasibility study
reports of projects
- Project impact
assessment report
- Annual reports of
MNRE
- Feasibility study
reports for supported
projects
- Detailed project
reports for supported
projects
25
Potential users having interest in

examining CSH viability in their
applications respond and eliminated users
with only marginal or passing interest.
All the feasibility studies get converted
into serious prospective projects.
Strategy

Indicator
Baseline
0
Target
30
30

and commissioned
demonstration projects in
at least 5 sectors

commissioned by EOP
No. of CSH technology application demo projects
that were operational by EOP
Output 3.1.4: Results of

the performance
monitoring, analysis, and
evaluation of

reports of the demonstration projects prepared by
EOP
demo projects whose operational and energy
per design by EOP
demo projects whose financial and economic
per design by EOP
No. of demonstrated CSH technologies replicated
by EOP
No. of companies where CSH technologies are
successfully applied by EOP
No. of implemented demo and replication projects
whose performance data is as per feasibility study
by EOP
Number of demonstration project profiles prepared
by EOP
30
15
15
60
90
90
90
30
No. of performance monitoring reports of demo and

90
Overall evaluations of demonstration and

Outcome 3.2: Improved

technical and economic
performance of
technologies in an
increased diversity of
applications
Output 3.2.1:
Documentation of results
of demonstration and
analysis and overall
evaluation for demo and
Means of Gauging
Success
- Project
commissioning
reports and all other
required documents
for demonstration
projects
demonstration project participant comply
fully with the stipulated terms and
conditions.
Users will be attracted by the support to
be provided for demonstration projects.
- Performance
evaluation report is
available
- Feasibility study
reports of projects
- Project impact
assessment report
- Annual reports of
MNRE
- Number of projects
information included
in database
- Number of case study
reports available
- Annual reports on
Performance
monitoring of
available
- Overall evaluation
reports on
demonstration and
26
The demonstration and replication

projects are implemented as scheduled
and operational.
The chosen units, both demo and
replication projects, comply with
agreement that includes making data
available and permission to publish the
data.
Demonstration and replication project
participants allow access for onsite
monitoring and evaluation.
Strategy

Indicator
Baseline
Means of Gauging
Success
Target
available
understanding of the
financial viability of
CSH technologies and
measures to mitigate
investment risks
Output 4.1.1:
Documented financial
viability of CSH
technologies,
applications, and
mitigation approaches of
investment risks
Outcome 4.2
Promulgation of
favourable financial
policies that promote
increased use and
promotion of CSH for
low and medium
temperature process
heat applications
Output 4.2.1 Formulated
recommendations for
financial and
promotional policies and
strategies for adoption by
Government of India
No. of potential and feasible financial options for

the application of CSH technologies identified and
promoted by EOP
No. of replication projects that use financial options
by EOP
No. of completed financial viability analyses of
CSH technologies and applications by year 3
30
Analysis of alternative financial options by year 3
No. of implemented CSH projects that benefitted

from the enforced policy and regulatory regimes on
CSH technology applications by EOP
28
No. of policy studies completed for inputs in the

formulation of policies supportive of CSH system
and application projects by year 3
- Project impact
assessment report
- Annual reports of
MNRE
- A report on analysis
of financial viability
of CSH technologies
available
- A report on
assessment of
alternative finance
models available
- A report on
assessment and
recommendations for
policies available

from users.
Transparency in information on existing
installations is provided by users,
manufacturers, MNRE.

from stakeholders.
27
ANNEX B: RESPONSES TO PROJECT REVIEWS (from GEF Secretariat and GEF Agencies, and Responses to
Comments from Council at work program inclusion and the Convention Secretariat and STAP at PIF)
RESPONSES TO GEFSEC COMMENTS (19 AUGUST 2011)
Comments and Responses
COMMENTS ON CEO ENDORSEMENT (FSP)
Comment: Component 4 is currently limited to studies. Possibly, some
more cofinancing and the reallocation of GEF funding could serve for the
development of an actual financial scheme for the promotion of the
technology after the end of the project, so as to assure the project's
replication effect.
Response:
As mentioned in the ProDoc, the users want a simple payback of 2 to 4
years. During the PPG phase, it was in fact identified that 2-5 years simple
payback is possible for Scheffler and 4-8 years payback period for ARUN
CSH systems. The MNRE subsidy scheme11 is relatively accessible to all
those who are interested to implement CSH systems for process heat
applications. MNRE is also offering a soft loan at a very attractive - interest
rate of 5%. This scheme is providing subsidies for CSH applications based
on the collector area of CSH installed, but not account for the CSH system
performance. Thus, it favours low-cost and low-efficiency CSH
technologies which require large collector areas. This may undermine realworld CSH application aspects such as CSH systems integration with
actual process requirements, the adoption of allied highly cost effective
energy efficiency opportunities, or the need for short, medium or longer
term heat storage.
In realizing the ambitious goals (for the year 2022) outlined under the
National Solar Mission, suitable financial incentives in the form of subsidies
and low interest loans will be made available. Therefore, the intention in the
project is not to formulate new financial support schemes right away, but
develop and improve/enhance the existing MNRE CSH subsidy scheme
considering the close gap between expected and actual payback periods.
This gap is further expected to close by the end of the project due to the
reduction in technology development costs and availability of the system
components in the country due to indigenous production. In the absence of
high quality and long-term performance data of the CSH technologies and
applications, it is currently impossible to accurately analyse the financial
viability of CSH technologies and applications. Hence, the need to gather
more information (through studies and surveys) to solidly establish the
economics of the local application of CSH technologies in industries. It is
expected that the results of such studies will provide the relevant basis for
formulating appropriate policies and influencing the approval and
enforcement of such policies that will support the creation and
Reference
ProDoc, Part
A, Section 1,
Para 14, p 7;
Part A, para
31, p15;
Part A,
Section 2,
Para 34, p 18
&
Section 3,
Table 11, p 22
ProDoc, Part
A, para 10, p7
&
Part B,
Section 7,
Para 99 &
100, p 45
11
MNRE is providing a capital subsidy of INR 5,400/ m2 and INR 6,000/m2 for CSH systems with single-axis and double-axis tracking respectively. The capital
subsidy/unit area of collector is based on the MNREs assessment of the benchmark cost of collectors. Besides the capital subsidy, MNRE is also offering a soft loan
at an attractive 5% interest rate.
28

implementation of performance based subsidy schemes. Performance based
subsidies are expected to be available at least until the completion of the
demo and replication projects. Nevertheless, the influence of carbon credits,
ESCOs financing, etc. cant be ruled out considering the dynamics involved
in the capital investments of private sector.
Reference
ProDoc, Part
B, para 45,
point 4, p 27
Question 9.1: The project framework and the outputs are clear and
consistent. The following issues should be addressed:
1. According to the Table 25 in the ProDoc the installation and
commissioning of demonstration and replication projects will start in year
2. Since these projects will concern the technologies that haven't yet been
demonstrated in India, they are much dependent on the other project
outputs which are not expected to be delivered so early. Especially, the
formulation of recommendations for differentiated financial support
schemes for the new technologies is expected at the second half of the
project, so they will not be available when most of the demonstration and
replication projects will be initiated, and there is no assurance that the
recommendations will be enforced by the government. That given, please
explain how it will become possible to stimulate the private sector interest
and financing for the new technologies, and especially to start the
installations at the year 2.
Response:
- Financial assistance is given through the project to conduct feasibility
study and Detailed Project Report (DPR) to set up a demonstration
project. Where reimbursement is given up to US$ 2,000 for feasibility
study, US$ 8,000 is given for DPR. Additional financial support in the
form of O&M, establishing of performance evaluation equipment are
the kind of supports through the project which is foreseen to spur the
private sector, especially in the S&M sector to take the step of
integrating a new technology. Also this assistance is intended to be a
risk mitigation measure considering the high investments involved in
the process integration of CSH for thermal applications. Due to the lack
of existing systems performance data, risks are anticipated by the endusers in the operation of these systems, and the lack of performance and
quality standards for equipment used and skill sets at all levels. The
expected good results from the targeted support that will be provided
under the project are anticipated to encourage private sector to
participate in demonstration or replication projects.
- The project has been designed to fully support and be compatible with
the on-going MNRE CSH support programme. India accounts for 70 of
the 100 CSH applications installed worldwide to date and this is merely
due to the involvement of private sector as well as promotional
measures taken by MNRE. However, the drawback of MNRE subsidy
scheme is release of subsidy based on the installed CSH collector area
than the performance of CSH system. Therefore, it is not intended to
formulate new financial schemes right away, rather develop and
improve/enhance the existing MNRE CSH subsidy scheme. In the
absence of high quality and long-term performance data of the CSH
ProDoc, Para
89, Box 3
Demonstratio
n projects, p
41
ProDoc, Part
B, Section 7,
Para 87, p 40
ProDoc, Part
A, Section 2,
Para 22, p 9
&
Para 34, p 18
29

technologies and applications, it is currently impossible to accurately
analyse the financial viability of CSH technologies and applications.
The introduction of new technologies may happen from year 2 and it is
too early to decide of new CSH financing mechanisms. As mentioned
in the ProDoc, the project will undertake assessment of alternative
financial options for the mitigation of investment risks. Nevertheless,
the influence of carbon credits, financing from ESCOs, etc. cant be
ruled out considering the dynamics involved in the capital investments
of the private sector. If found suitable, some of the demonstration and
replication projects may then be undertaken considering these financial
options. The replication projects are expected from the year 1 whereas
the installation and commissioning of demonstration projects will start
from the year 2. By the year 3, at least two potential and feasible
financial options for the application of CSH technologies are expected
to be identified and promoted, so that the project will have further two
more years to implement demonstrations and replications as per the
updated project scenario. Since the Executing Partner of the project is
MNRE and selected projects will have to follow set guidelines of the
UNDP-GEF project in order to avail of the benefits listed under project.
It that regard, it can be assured that any new developments or
recommendations generated during the project implementation period
can be enforced, including possible modifications to the existing
MNRE subsidy scheme.
Reference
ProDoc, Part
B, Section 7,
Para 99, p 45
ProDoc, Part
B, Section 7,
Para 100, p 46
Question 9.2: 2. Please clarify what is the purpose of creating two different
sets of installations that will be provided with different levels of financial
and technical support (demonstration and replication installations) instead
of having one set of installations supported directly by the project. Also, it is
not clear how each set will be selected. It should be noted that the
obligations under the replication project scheme are much lighter than
those under the demonstration project scheme, without any clear
justification.
Response:
- This distinction is to promote the commercial and near-commercial
CSH technologies for diversity of applications and also to encourage
engagement of private sector.
- Out of the five key worldwide CSH technologies, only two i.e.
parabolic dish with fixed focus (e.g. Scheffler) and parabolic dish with
moving focus (e.g. ARUN) have been used to date in India for thermal
process applications. Parabolic trough, linear Fresnel and CPC
technologies have not yet been used for commercial CSH applications
in India. The full suite of applicable CSH technologies in India means
that there is often a mismatch between the technology deployed and the
real process application temperature requirements or other CSH system
attributes needed.
- In addition, the absence of a systematic monitoring of in-use process
CSH applications means that the performance of existing CSH
applications is not quantified and hence the necessary technical learning
ProDoc, Part
B, section 7,
para 87, p 39
30

from the operation of the existing CSH applications in India is limited.
In the absence of proper monitored performance data, the credibility of
the existing CSH technologies actual performance in real applications
in India is low, and this is a key barrier to the increased uptake of CSH
in India. Therefore, 30 demonstration projects will demonstrate the
application of solar concentrator technologies which have not been used
so far in India, as well as new CSH applications or significant
improvements over the CSH technology packages currently available.
- The 60 replication projects will also be supported, which will either be
replications of the CSH packages demonstrated during the project or
will use already available CSH packages. Nevertheless, the
performance of all the demonstration and replication projects will be
monitored. The improved technical and economic performance
knowledge and the greatly increased number of operational CSH
projects will increase future CSH users confidence in the technology
and lead to faster dissemination of CSH technologies and applications
in India in the future.
- The support required for demonstration and replication installations
vary. Demonstrations showcase CSH as feasible option in different
selected sectors. The assistance available for each demonstration is (a)
reimbursement of up to US $ 2,000 per feasibility study, (b) up to US $
8,000 per Detailed Project Report (DPR) preparation, and (c) additional
financial support (10% of the project cost with a maximum support of
US $ 20,000) is needed over and above the available MNRE subsidy
that will cover the cost of performance monitoring equipment and
partly cover the cost of the obligations mentioned. Replications require
a minimum support to enhance the use of CSH. The assistance
available for each replication projects includes: (a) Reimbursement of
cost of feasibility study (up to US $ 2,000); (b) Technical training of
two technical persons in CSH operation and maintenance per site; and,
(c) Financial support up to a maximum of US$ 6,000 for procuring and
installing the performance monitoring equipment.
Question 13: Given that almost all the cofinancing refers to the investment
that will be directly subsidized by the project, the unit abatement cost for
the emission reductions due to these investments is over $60/tonne CO2e.
Given this level of unit abatement cost, please clarify whether under the
current conditions in the Indian market these investments can be
considered as cost-effective.
Response:
- The current interest in promoting CSH technologies arises from the fact
that two third of industrial final energy consumption is thermal energy
(process heat). One third of industrial process heat demand is below
200C which suits the integration of solar concentrator systems in
process heat applications. In the near future, the most promising
applications for CSH will also be in sectors with small steam needs and
using higher cost fossil fuels, in particular furnace oil. The main
industries/sectors requiring process heat which have an appreciable
potential for CSH applications in India. Further, the furnace oil price is
Reference
ProDoc, Part
B, section 7,
para 89, Box 3
and Box 4, p
41
ProDoc, Part
A, Section 2,
Para 23, p 10
31

increasing rapidly, and application of CSH will contribute to the
reduction of abatement cost.
- In the component 3, the budget allocation is towards both TA and
investment. A major portion of the investment is towards demonstration
of solar concentrator technologies which havent been used so far in
India, as well as new CSH applications or significant improvements
over the CSH technology packages currently available in India.
- Therefore, only GEF contribution (USD 4.4 million) is divided by the
combined direct and direct post-project emission reductions. This gives
a corresponding GHG unit abatement cost (UAC) (i.e. GEF$ per tCO2)
of US$ 13.97/tCO2.
Question 19: No. GEF funding for PM is much more than the cofinancing
for PM. Office facilities and equipment costs should be covered by the
executing partner, and the travel costs should be shared. Please decrease
the level of the GEF PM funding in order to adjust to the cofinancing ratio.
Response:
- The PM budget has been revised as suggested.
Reference
ProDoc, Part
B, section 7,
para 87, p 40
ProDoc, Part
B, section 9,
para 113, p 49
CER, Part I,
Table A, p 2
& Table F, p
3.
ProDoc,
section 12,
Table 35, p
61; Table 36a,
36b, p 68 and
Table 37, p 69
Question 22: The cofinancing letter form the government of India does not
specify that 6 million USD will be grant financing and the rest in-kind.
Please clarify the linkage between the 6 million USD grant, the existing
MNRE subsidy scheme, and the size of the expected investments. Also,
since there are no cofinancing letters from the private sector and the
financial institutions, please provide a clear calculation of the costs of the
investments that will be undertaken under the project scheme, in order to
justify the proposed cofinancing.
Response:
- The co-financing details are provided in Part I, Table B of the CEO
Endorsement Request. MNRE provides US$ 6 million co-financing as
grant through its existing subsidy scheme for demonstration and
replication units. The project cost of solar concentrator installation in
industrial unit will essentially have the funding from three streams
namely, grants (subsidy from MNRE), equity from industrial unit, and
loan from financial institution (IREDA has given a letter of support).
Approximately, the expected funding ratio for the three funding sources
is anticipated to be 1:1:1. The total allocation from MNRE is US$ 6.0
million, while it is expected that industries will invest US$ 6 million
and leverage loans of US$ 6 million. IREDA has extended their
willingness to provide loan. From the discussions with MNRE, IREDA
will support the demonstrations through the provision of loans of up to
US$ 6 million.
Particulars
CER, Part I,
Table A, p 2,
footnote 1;
Table B, p 3.
and
ProDoc,
Section 13,
para 128, p
72.
Quantity
32

The current benchmark cost for solar concentrator
systems in India (irrespective of available technology
[among two technologies] and application), US$/m2
Assumed uniform cost for both demonstration and
replication projects, US$/m2
Average size of each demonstration and replication
project, m2
Each demonstration & replication project is assumed to
have an investment cost of, US$
Total area targeted under the project (30,000 m2
replication + 15000 m2 demonstration), m2
The total investment cost required for demonstrations
and replications, US$
The share of total investment required:
Total MNRE subsidy, US$
Estimated Total Equity financing from industry, US$
Estimated Total Loan financing from IREDA, US$
-
Reference
400-450
400
500
200,000
45,000
18,000,000
6,000,000
6,000,000
6,000,000
IREDA is not able to issues a letter of co-financing that indicates an

exact amount of US$ 6.0 million, since the loan amount may either be
lower or higher depending on the replication projects to be financed.
But MNRE often depends on such in principle commitment letter from
IREDA.
Co-financing letters from industries that will apply CSH technologies
will not be available during the CEO Endorsement stage since the host
demonstration companies and the potential replicants will be identified
and selected only during the project implementation. The selection will
be carried out through a transparent process.
ProDoc, Part
C, Annex B, p
85&86
ProDoc, Part
B, section 7,
para 94, p 43
STAP Screening of the PIF (4 February 2010)

STAP expresses its consent to the project aimed at the increased use of solar concentrators for high temperature
process heat applications in India. The proposed project will contribute to the implementation of Indias
national action plan on climate change. There is a large potential for CSP technology for process heat
applications in SMEs. The project aims to develop a technology package, demonstration in the field, build
capacity, identify and overcome the barriers for a large-scale technology spread. The following issues should be
addressed at the CEO endorsement stage.
Comment & Response
Reference
Comment 1:
Technological Package: Concentrated solar power (CSP) is a known technology, but its
large-scale adoption for small-scale process heat applications in small and medium
enterprises (SMEs) or large scale power generation is still emerging, due to various
factors including technology costs. Four types of CSP systems are being considered. Will
all the four types be demonstrated or the performance of different CSP systems is known?
STAP recommends exploring whether all the four designs sufficiently developed for largescale demonstration and application?
Response:
33
Comment & Response

The four applicable CSP technologies have been supplemented by Compound Parabolic
Concentrator (CPC) technology to come up with five relevant Concentrating Solar Heat
(CSH) solar concentrator technology types to be demonstrated. The three CSH
technologies not yet demonstrated in India will be brought to India and tested for Indian
conditions by SEC, and in parallel all five main CSH technologies will be demonstrated in
30 properly process integrated applications with consistent monitoring of performance. In
addition 60 replication projects will be monitored to a lower level of detail to give 90
consistently and appropriately monitored CSH applications by the end of the project.
Comment 2:
Baseline Scenario: The key recipient industries (dairies, textile processing, etc.) have
been identified. What is the baseline status of these industries in terms of their energy
consumption, GHG emissions and energy efficiency? The baseline analysis is required to
assess needs for CSP and potential GHG emission reductions to be achieved by the
project.
Response:
The list of key recipient industries has now been expanded and changed to cover the
development of ten CSH technology application information packages. Although a list of
promising sectors has been identified, and 14 energy audits for CSH applicability / CSH
case studies have been undertaken, the project preparatory stage lacked the necessary
resources and timescales to develop robust and statistically relevant sectoral baselines for
each CSH application package target sector. The number of energy audits/case studies is
necessarily too limited to be extrapolated to provide meaningful and widely applicable
baseline emissions on an individual industry level. This necessary baseline data for each
key CSH target industry work will therefore be a priority activity to be undertaken as the
ten CSH technology application packages are developed.
Nevertheless, as on date, about 20,000 m2 CSH systems area has been implemented in
India and assumed an average CO2 emission reduction of 0.35 tCO2/m2/y as there is a
wide range of fossil fuels are being used for thermal applications in various industries.
Comment 3:
Financial Barriers: The financial barrier is identified and how it will be mitigated needs
careful consideration since this barrier is a major factor in the decision of industries to
shift to CSP. The proposed activities may not lead to the reduced costs of the CSP
systems. The usual incentives such as low interest loans and subsidies may not be
adequate. This problem will remain unless a major technological breakthrough occurs
and is accompanied by a large-scale production capacity.
Reference
ProDoc,
Section 2,
Para 24-26,
p 11 & Para
40, p 19
ProDoc,
Section 2,
Para 40, p
19
ProDoc,
Section 7,
Para 59, p
30 & Box 2,
Table 14, p
31
Response:
Financial barriers were carefully considered during the project preparatory stage. The
analysis to date has shown that the MNRE CSH subsidies are very likely to be sustainable
for the foreseeable future in India, and that the complexity and time-consuming
development of new financial incentives is probably not required for the proposed
enhanced uptake of CSH applications in the full project implementation phase. However,
a change to the MNRE subsidy scheme to recognise different levels of CSH performance
is widely recognised and MNRE is clearly interested in such enhancements to their CSH
subsidy scheme once the full scale UNDP GEF MNRE CSH project provides the
necessary analytical and case study basis of a more CSH performance based MNRE
subsidy scheme.
There are no direct focused activities under the UNDP GEF MNRE CSH project for the
cost reduction of CSH systems. However, the project will work towards this aspect by
integrating it as one of the key selection criteria for the selection of demonstration projects
i.e. improvement in CSH technical and/or economic performance and cost reduction
ProDoc,
Section 7,
Box 3, p 40
&
34
Comment & Response

(lower INR/m2). Apart from this, there are three other factors that will play a key role in
the cost reduction i.e. creating market competition (having more suppliers on ground),
availability of skilled labour and mass production. The project in fact addressing some of
these issues through increasing technical capacity and number of skilled workforce. These
would directly contribute to more number of suppliers, thereby increases competition and
wider availability of skilled labour. Also, increase in fossil fuels cost/fluctuating oil prices
will create a demand for the application of CSH systems which on a long run will have an
attractive payback period due to lower operation costs and reduced energy bills.
The work of the project preparatory stage revealed that technological breakthroughs, while
of course extremely welcome, are not a prerequisite of CSH installation numbers
increasing by the factor of 6-8 as sought in the full scale UNDP GEF MNRE CSH project
implementation. While CSH users would of course like 2-3 year simple paybacks, it is
clear that there are sufficient early adopters and those who want to get some insurance
against fluctuations in international oil prices (as the key CSH market in India is users
using fuel oil for process heat).
Comment 4:
Year round process heat supply: The process industries considered would require year
round supply of process heat. What are the backup options for days when solar based
process heat is not available? If, for example, dairy industry has to have an energy
backup, what are the alternative sources of energy and cost implications?
Reference
Para 74, p
35
&
Para 76-77,
p 36
ProDoc,
Section 2,
Para 31, p
16
Response:
In the Indian process heat supply situation, most of the applicable industries already have
a fossil fuel (generally fuel oil, as piped natural gas is rarely available) energy source and
this fossil fuel would continue to be the backup energy source when CSH technologies are
installed with minimal capital and O&M cost extra costs if CSH is also used. Heat storage
has been identified as a key CSH success factor, and will be strongly supported in the
project, but it will be rare that the cost of back up fossil fuel is so high that year round heat
storage is justified, not least because much of India has minimal direct solar radiation
resource during the monsoon season. It is envisaged that most CSH applications would
operate as fossil fuel use reduction options, not as a base load heat supply.
Comment 5:
Barriers: Awareness and capacity building activities do not adequately address the
barriers of high cost of the technology and the technology performance related issues. A
systematic analysis of barriers may be necessary to identify and rank the barriers to
enable focused activities.
Response:
A detailed barrier analysis of technology package, awareness and capacity, demonstration
and replication and financials has been provided in the UNDP ProDoc, Part A and section
3.
ProDoc,
Section 3,
Table 11, p
20
GEF COUNCIL COMMENTS

Comments from Switzerland (March 2010)
Comment & Response
Reference
Comment 1:
The main question relates to the Indian authorities' readiness to set up the
necessary structural measures that will guarantee a successful market penetration
35
Comment & Response

of the CSP technology. For this infant industry to become a long-lasting
commercial success, financial incentives, such as tax reductions, etc., are required
at the initial stage.
Response:
The Indian government has been offering financial incentives to CSH applications that,
amongst other factors, have seen India now hosting around 70% of the known
implemented CSH applications worldwide. The analysis and stakeholder consultations
undertaken during the project preparatory phase strongly suggest that the CSH subsidies
provided by MNRE will be continued into the future. The MNRE CSH subsidies could be
better targeted, and changes to this effect are suggested for this full scale GEF projects
implementation, but even if the MNRE CSH subsidies continue in their current simple per
m2 basis, this will provide a very useful financial support for CSH installations in India,
particularly alongside the other wide range of integrated CSH support measures proposed.
Comment 2:
Reference
ProDoc,
Section 2,
Para 30, p
15
With the exception of the list of the policy decisions taken at the National level,
there is no mention of the role, involvement and responsibility of the local/state
authorities. The responsibility of implementing, adjusting and, in certain cases,
encouraging additional measures lie in the local authorities hands. Their role is
of the utmost importance.
According to the project document, a study seeking to address the first matter of
concern will be undertaken in the course of the project progress. One would
recommend the study to take stock of the role, involvement and responsibility of
the local/state authorities. If this study had been conducted prior to the beginning
of the project, the conclusions of the study would have given valuable indications
on the prospect of CSP technology in India.
Response:
With the Jawaharlal Nehru National Solar Mission (JNNSM) under Indias first National
Action Plan on Climate Change (NAPCC), there is already strong central government
support for CSH technology applications in India. In the project preparation phase
extensive stakeholder consultation was undertaken, and in no cases was state or local
government support identified as a critical necessary element of the projects design.
However, it is envisaged that state and municipal governments will provide support for the
implementation aspects of this full scale India CSH project as required, but the project
does not rely on this support as a critical project success factor.
Comment 3:
The concerns raised by the STAP as regards energy shortage and requirement of
energy backup is well understood and shared. This question is not discussed in the
document. For the CSP technology process to function all year-round (dairy
industry), additional back-up energy devices may be put in place.
Response:
In the Indian process heat supply situation, most of the applicable industries
already have a fossil fuel (generally fuel oil, as piped natural gas is rarely
available) energy source and this fossil fuel would continue to be the backup
energy source when CSH technologies are installed - with minimal capital and
O&M cost extra costs if CSH is also used. Heat storage has been identified as a
key CSH success factor, and will be strongly supported by the project, but it will
be rare that the cost of back up fossil fuel is so high that year round heat storage is
ProDoc,
Section 5,
Para 41,
bullet (1), p
27
36
Comment & Response

justified, not least because much of India has minimal direct solar radiation
resource during the monsoon season. It is envisaged that most CSH applications
would operate as fossil fuel use reduction options, not as a base load heat supply.
Information gathered, and stakeholder analysis undertaken during the project
preparatory phase, did not suggest any cases where CSH with sufficient storage to
operate year-round with no back up energy source would be justified (although as
in the case of the Mumbai hospital CSH for space conditioning project currently
being implemented, this back up energy could come from biomass energy sources
and not fossil fuels).
Comment 4:
In addition, the absence of a baseline scenario is surprising and the STAPs
requirement for a baseline analysis is thus supported.
Response:
A baseline analysis has been undertaken and is detailed in the accompanying
project ProDoc. The ProDoc also includes energy audits of existing CSH
applications in India, as well as case studies of international CSH applications.
This baseline analysis, Indian CSH energy audits, and international CSH
applications case studies in the ProDoc provides a solid basis for the baseline
scenario presented in the ProDoc.
Comment 5:
On the technology front, the CSP technology - though well known by few - is still
at its development stage. One would recommend an intensive collaboration with
outsiders (experts from India and abroad) whose expertise would help to optimise
the technology. There is no list of enterprises or national institutes with which
collaboration is foreseen. In addition, the fact that the CSP technology is largely
in the hands of the private sector may complicate the information sharing and
constitute a barrier as such.
Reference
ProDoc,
Section 2,
Para 29-40,
p 12-19
Response
Concentrated solar heat for process applications (CSH) use four technologies used
for concentrated solar power (CSP) applications as well as the CPC (Compound
Parabolic Concentrator) technology that is not applicable to CSP applications. For
CSH applications, the solar collector side of the technology is a mature enough
technology for the 120C to 250C process heat applications envisaged. Further
solar collector technical development is of course to be welcomed but there is no
need to wait for such developments before large scale CSH implementation can
begin in India.
With large scale commercial CSH applications being sought under the project, it
was widely agreed by all stakeholders in India that the technologies have to be
driven primarily by commercial considerations, and this includes commercial
provision of CSH solar concentrator and other system elements. It was also widely
agreed that there is both a need and a strong desire for the Indian CSH industry to
cooperate in jointly growing the Indian CSH market, while at the same time
vigorously competing within common standards of defining system performance.
As such, private sector involvement in CSH technology development is seen as
critical to project success.
37
Comments from USA (March 2010)
Comment & Response
Reference
Comment 1:
The United States believes that the proposal would have been strengthened by a
more thorough implementation plan including a discussion of the strengths and
capabilities of the implementers regarding their ability to achieve the goals of the
proposal. However, the significant cost share from industry ($6m) and the
financial community ($6m) indicates that they will be sufficiently involved to
ensure success of the project.
Response:
During the course of the project preparation phase there were extensive discussions with
all the existing and proposed CSH manufacturers and vendors in India. There are three
manufacturers with a reasonable scale and reasonably proven CSH systems with
manufacturing and installation capacity. This is detailed in the ProDoc.
ProDoc,
Annex G, p
98
& Annex I,
p 105
However, at the same time care has been taken to avoid discouraging the many new CSH
market entrants with too detailed a discussion of their capacities or lack thereof, as at this
early stage of CSH market development in India it is not clear which of the existing or
future CSH players will become major future players, and it is important that this
manufacturer development and success or failure is primarily driven by commercial
considerations, as is proposed in this project.
Comment 2:
We recommend that coordination with on-going bilateral efforts, including the

Clean Energy Research and Deployment Initiative established between the
Government of India and the U.S. Government, would complement the goals of
this project.
Response:
Explicit links are included in the ProDoc between Government of India and the U.S.
Government in fostering new CSH technologies and related aspects.
ProDoc,
Section 4,
Table 12, p
25
38
ANNEX C: CONSULTANTS TO BE HIRED FOR THE PROJECT USING GEF RESOURCES

Project management
USD/
person
week
Estimated
person
weeks
750
130
97,500
- Oversee the day-to-day planning, implementation and monitoring of

project activities.
- Assist the NPD and NPC (if any) in management and
implementation of the project and achievement of its goals.
- Coordinate and manage Inception Workshop and preparation of
Inception Report.
- Prepare progress report (quarterly and annual), FACE, annual work
plans and budgets, facilitate audit, and any other necessary
documentation required by UNDP, MNRE and the PSCs and
recommendation to the Project Steering Committee.
- Support timely progress of activities and project implementation as
per the ProDoc.
- Support the elaboration of monitoring and evaluation reports
(midterm, terminal etc.) to MNRE and UNDP/GEF.
- Prepare and approve Terms of Reference for consultants,
subcontracts and for equipment procurement.
- Disbursement of funds, maintenance of accounts as per requirements
of UNDP and providing inputs to internal and external audits.
- Liaise with counterparts and main stakeholders to ensure that their
roles are appropriately integrated in the project as envisaged.
- Delegate responsibilities as appropriate to the Project Officer
(Awareness & Dissemination).
- Monitor the work of the agencies involved in managing specific
components, outputs e.g. the two Component Managers
(Demonstration Project), SEC, etc.
Project Officer
(Awareness and
Dissemination)
750
26
19,500
Programme
evaluation
expert National
Total
750
12
9,000
- Coordinate all activities under Component 2: Awareness and

Capacity Building.
- Organize selection of consultants for carrying out training needs
assessment, preparation of training modules and training material,
and selection of agencies for conducting relevant awareness and
training programmes.
- Oversee the design, delivery and evaluation of the awareness and
training programmes.
- Coordinate the conduct of the international study tour and
international training on testing.
- Coordinate the organization of the two international conferences and
expo on CSH.
- Organize the development, launch and management of the project
website and the various publications under the project.
- Coordinate the award of fellowships and progress there under.
- Organize the promotion and publicity for CSH technologies.
- Network with key stakeholders to strengthen the awareness, capacity
building and dissemination work under the project.
- Mid-term and final evaluation
Position title
National
National Project
Manager
(NPM)
168
Total
(in USD)
Tasks to be performed
126,000
39
Position title
International
Programme
evaluation expert International
Total
USD/
person
week
Estimated
person
weeks
3,000
10
30,000
10
30,000
Total
(in USD)
- Mid-term and final evaluation
Technical Assistance
National Consultants
USD/
person
week
Estimated
person
weeks
CSH expert
Performance
monitoring
Solar thermal
technology expert
Market assessment
expert
Energy technology
and process expert
CSH testing and
standards expert
750
32
24,000
Performance assessment of CSH systems
750
29
21,750
Technology assessment of solar concentrator technologies.
750
60
45,000
Market assessment of CSH technologies/systems.
750
112
84,000
750
133
99,750
CSH testing expert
750
150.16
112,620
Technical Training
Expert
750
80
60,000
Component
Manager for
component 3
750
620
465,000
Development of CSH technology application information

packages.
Development of performance measurement standards, test
protocols, specifications, facilitation of formation of national
standards with BIS, etc.
Operation of national and regional testing facilities for CSH
technologies/systems.
Training needs assessment, development of training modules,
faculty for training programmes, Monitoring and evaluation of
training activities.
Assist NPM in preparing the call for Expressions of Interest
(EOI) for Consultants to conduct feasibility studies and the
preparation of DPRs ; Assist NPM in preparing the call for EOI
for feasibility studies; Creating awareness on project objectives
direct / indirect benefits to industries for participation through
industrial associations and awareness workshops with an aim to
encourage industry to respond to the EoI for feasibility study;
Assist NPM in evaluation of proposals from Consultants for
empanelment and industry for feasibility study, replication
projects and demonstration projects; provide orientation to the
Consultants for undertaking feasibility studies and DPRs;
Review and evaluation of the feasibility studies and DPRs;
Meeting with the industry after the submission of the draft
feasibility report to evaluate the potential to undertake
replication/demonstration projects; Assist NPM in the approval
and disbursement of GEF grant/subsidy for feasibility studies,
demonstration projects and replication projects. Undertake
regular monitoring of the implementation of the demonstration
and replication projects and submit periodic reports to NPM on
progress; Analysis of data on the performance of the systems
submitted by the CSH industry on the demonstration and
replication projects; Verification of the performance data
through site visits/performance monitoring for demonstration
projects; Preparation of case studies in the desired format on
Position title
Total
(in USD)
40
Position title
Financial analysis
and business
development expert
Policy expert
Total
USD/
person
week
Estimated
person
weeks
Total
(in USD)
750
48
36,000
750
24
1,288.16
18,000
966,120
the project along with calculations of CO2 savings and
submission to NPM; smooth and synergistic relationship
among owners, suppliers, bankers, consultants and others
involved in demonstration and replication projects.
Study on analysis of financial viability of CSH systems;
Assessment of business models.
Policies on financial incentives, schemes and mechanisms
Position title
Solar thermal/
CSH
Technology
Expert
CSH standards
and testing
expert
Technical
training expert
CSH testing
expert
CSH
application
expert
Financing and
policy expert
Total
USD/
person
week
3,000
Estimated
person
weeks
9.5
3,000
17.5
52,500
3,000
12
36,000
3,000
12
36,000
3,000
13.5
40,500
3,000
10
30,000
74.5
223,500
Total
(in USD)
28,500
- Advisory support for technology assessment of solar
concentrator technologies;
- Development of technology application information
packages.
- Advisory support for the development of performance
measurement standard and test protocols and minimum
performance norms for solar concentrator technologies for
CSH applications;
- Initiation of process for adoption as international standards
by ISO.
- Development of technical training modules.
- Technical assistance for national testing facility and training
of technical personnel for testing
- Technical assistance for the demonstration and replication
projects
- Technical assistance for financing and policy options.
41
ANNEX D:
A.
STATUS OF IMPLEMENTATION OF PROJECT PREPARATION ACTIVITIES AND THE USE OF FUNDS
EXPLAIN IF THE PPG OBJECTIVE HAS BEEN ACHIEVED THROUGH THE PPG ACTIVITIES
UNDERTAKEN.
In September 2009, UNDP submitted the PIF and PPG request to the GEF Secretariat, which was cleared by the
GEF CEO in March 2010. In 2010, suitable international and national consultants were recruited, supported by the
PPG grant, to advise on the development of the project and elaborate the necessary documentation for GEF
submission through UNDP. As a main achievement of the PPG phase was the drafting of (a) CEO Endorsement
request and (b) the UNDP Project Document. Overall the PPG exercise has achieved this objective.
The Logical Framework Analysis (resulting in a Project Planning Matrix) that was carried out by the team together
with the stakeholders resulted in the detailed design of the project components, expected Outcomes, Outputs and
planned activities. As a result, the Project Planning Matrix (refer Annex A, Project Results Framework) was
developed in cooperation with the stakeholders. The available data and information gathered during this phase was
also used in the project design. The discussions with the key stakeholders and project partners (MNRE, SEC) have
made possible the identification of relevant issues and barriers that need to be addressed and considered in the
development and implementation of this project. Intensive discussions with the CSH industry, end-user
industries/segments and energy audits conducted during the PPG phase have made it possible for the project team to
fully understand the nature and extent of these issues/barriers (refer to Section 3, of the UNDP ProDoc for more
details).
B.
DESCRIBE IF ANY FINDINGS THAT MIGHT AFFECT THE PROJECT DESIGN OR ANY CONCERNS ON
PROJECT IMPLEMENTATION. N/A
C.
PROVIDE DETAILED FUNDING AMOUNT OF THE PPG ACTIVITIES AND THEIR IMPLEMENTATION
STATUS IN THE TABLE BELOW:
Project Preparation
Activities Approved
1.Evaluation of 4 solar
concentrator technology
packages and their
applicability in 5
identified sectors
2. Identification,
evaluation and selection
of demonstrations
3. Assessment of the
barriers to the
widespread production
and application of solar
concentrators
4. Conduct of Logical
Framework Analysis
(LFA) with the project
stakeholders
5. Detailed Design of
Project Components &
Activities
6. Coordination
Mechanisms and Other
Institutional Work
7. Drafting of the Project
Document
Implementation
Status
completed
Amount
Approved
20,000
GEF Amount ($)

Amount
Amount
Spent To-date Committed
19,222.57
777.43
Uncommitte
d Amount*
-
Co-financing
($)
20,000
completed
15,000
13,135.00
1865.00
20,000
completed
15,000
15,000.00
20,000
completed
25,000
14,082.22
10,917.78
10,000
completed
21,000
8,808.07
12,191.93
15,000
completed
4,000
20.67
3,979.33
5000
completed
5000
42
8. Finalization and
Submission of the
ProDoc and CEO
Endorsement Request
completed
5000
100,000
70,268.53
29,731.47
100,000
* Uncommitted amount should be returned to the GEF Trust Fund. Please indicate expected date of refund transaction to Trustee.
43

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ACRONYMS AND ABBREVIATIONS

Annual Project Review

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Project Advisory Committee

RGGVY is Government of Indias programme for rural electrification.

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

PART A. SITUATION ANALYSIS........................................................................................................... 4

CONTEXT AND GLOBAL SIGNIFICANCE: ENVIRONMENTAL, POLICY AND INSTITUTIONAL ............................... 4

PART B. PROJECT STRATEGY............................................................................................................ 27

PROJECT RATIONALE, DESIGN PRINCIPLES AND STRATEGIC CONSIDERATIONS ............................. 27

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

PART A. SITUATION ANALYSIS

CONTEXT AND GLOBAL SIGNIFICANCE: ENVIRONMENTAL, POLICY AND

Indias Energy Scenario

Figure 1: Indian Industrial Demand by Fuel Type, 2008

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

National Programmes on Renewable Energy and Country Drivenness

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Target for Phase I

Off grid solar

Utility grid power,

Target for Phase

Target for Phase

Concentrated Solar Heating (CSH)

Jawharlal Nehru National Solar Misin, Misin Document, Government of India

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Figure 2: Global Solar Radiation in kWh/m - India

Moving focus parabolic dish (e.g. ARUN dish)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Table 2: Growth in Renewable Energy in India ,

India and Climate Change

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

CONCENTRATED SOLAR HEAT FOR PROCESS APPLICATIONS AND BASELINE

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Figure 3: Use of mirrors for concentrating solar energy

Food and Beverages

Temperature range (C)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Table 5: International experience base of CSH applications

Hot water/ steam

New York, USA

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Hot oil @ 175 C

Box 1. Solar Cooling in a Hospital, Australia

Figure 4. Ipswich hospital solar collector field (Source: ENERGEX Ltd)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Area available for

Total number of systems

CSH collector size distribution

Maximum size of the system

Minimum size of the system

Number of systems having size > 1000 m

Number of systems having size 200 to 1000 m

Type of CSH collectors

Parabolic dish with moving focus (ARUN)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Tamil Nadu (2,344)

Figure 5: Five leading states in CSH Installations (m of collector area)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

ProDoc: UNDP GEF Concentrated Solar Heating Project (India CSH)

Cumulative CSH installations (m2)

Figure 6: Forecasted cumulative installation of CSH collector areas in business-as-usual (BAU)