South India

Energy Conservation in Small Tea Processing Units in South India

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Program Type:
Technical assistance

Target Group

Cross Sectoral
2004 to 2011
Sponsoring Entity:
United Nations Development Programme (UNDP)
Counterpart Entity:
Ministry of Commerce, India
Ministry of Environment & Forests (MoEF), India
Implementing Entity:
Indian Renewable Energy Development Agency (IREDA)
Tamil Nadu Energy Development Agency

The project aims to remove barriers to energy conservation and energy efficiency that inhibit the realization of large energy saving potential in the tea sector. Capacity building, training, and awareness creation are large components of the project activities.

Energy Efficiency / GHG Goals:
The total direct reduction in carbon dioxide (CO2) emissions is estimated to be 56,925 tonnes. Replication would indirectly reduce CO2 emissions by a further 170,775 tonnes.
Barriers Addressed:
  • Lack of knowledge about the energy-efficient technologies adopted in the tea processing units
  • Lack of awareness about the EE opportunities available through adoption of energy saving technologies
  • Inadequate data on return on investments in energy-efficient technologies
  • Uncertainties over value realized through tea plantations (barrier linked to crop insurance and associated output)
Financing Mechanism:

The project was designed to support technical studies and build awareness among tea processing unit operators. No specific financing mechanisms were envisaged except for providing tea growers an insurance facility through the National Bank for Agriculture and Rural Development’s crop insurance schemes.

Eligibility Criteria:


Major Activities:
  • Awareness creation in target sector about EE and RE technologies and their relationship to profitability
  • Elimination of financial barriers that inhibit investment in energy conservation equipment
  • Adoption and procurement of energy efficiency / renewable energy equipment / practices
  • Learning, knowledge sharing, and replication
  • Thirty tea processing units in south India adopted energy-efficient equipment and practices within the project period, resulting in cumulative savings of 56,925 tons of direct CO2 emissions
  • New investments in energy-efficient technology annually from the second year 
  • Number of factories invest in energy efficient equipment, nature of equipment deployed
  • Tea Board extends the same to other tea clusters
Key Results:

This project ended in December 2011; no specific information on results is currently available

Lessons Learned:

The project was completed in December 2011. No interim review report is available as of now. UNDP issued a request for proposal in May 2012 for international and national consultants to evaluate the project. The evaluation report is likely to be made public by the end of 2012.


Martin Krause, Regional Technical Advisor – Climate Change, +66-2-2882-2722,

Other Comments:
Project implementation through local partners, such as the Technology Information Design Endeavour, appears to be a key to the success of project implementation.