Summary of Terminal Evaluation
1.

Outline of the ProjectCountry: India

Project title: Research Partnership for Application of
Low Carbon Technology for Sustainable Development

Issue/Sector:

Cooperation scheme:

Energy Efficiency / Climate Change

Technical Cooperation (SATREPS)

Division in charge: Industrial Development

Total cost: (as of Terminal Evaluation)

and Public Policy Department
Period of
Cooperation(R/D):thApprox. 276 million JPY
Partner Country’s Implementing Organization:

12 March, 2010

The Energy and Resources Institute (TERI)

Project Period:

Supporting Organization in Japan:

May 2010 ~ March 2014

Institute for Global Environmental Strategies (IGES),
Kyoto University (KU)

1-1 Background of the Project
India has experienced continuously high economic growth in recent years, and meanwhile energy
demand has increased dramatically. According to the document entitled “Integrated Energy Policy
Document (2006)”of the Planning Commission of India, if the current annual economic growth rate of
8-9% is to be maintained till the year of 2030, the supply of primary energy would be required to triple,
while an estimated six-fold increase in the supply capacity of electric power is considered
indispensable. With the increase of energy supply and demand, the environmental burden is growing.
For example, those obsolete power facilities are not only poor in generating efficiency, but also
problematic in environmental aspect in that they discharge more hazardous substances causing
environment pollution as compared with those newly developed environment-friendly facilities.
Moreover, with the emission of Green House Gas (GHG) like CO2 tending to increase sharply, India has
become one of the largest CO2 emitter in the world. It is apprehended that GHG emission in India
would be soaring proportionately to the rapid growth of economy.
Accordingly, the introduction of low carbon technologies (LCTs) become an urgent task to reduce or
mitigate the emission of CO2 expected to further increase drastically in the near future. In this regard, it
is desirable to adopt applicable international technologies and establish them domestically. With thisview, the Government of India (GoI) requested the Government of Japan (GoJ) to support theimplementation of “Research Partnership for Application of Low Carbon Technology for Sustainable
Development” (hereinafter referred to as “the Project”) under Science and Technology ResearchPartnership for Sustainable Development (SATREPS) program.
In the Project, with The Energy and Resources Institute (TERI) as counterpart on the Indian side,
Institute for Global Environmental Strategies (IGES) and Kyoto University (KU) jointly conduct the
research on the Japanese side. The period of cooperation is from May 2010 to March 2014.
As the remaining Project period became 6 months as of September 2013, this terminal evaluation was
implemented in order to identify the remaining tasks to be achieved by the end of the Project, and to
draw recommendations and lessons learned for future activities.

x1-2 Project Overview(1) Overall Goal
The applications of low carbon technologies are promoted.
(2) Project Purpose
A framework to promote low carbon technologies is proposed.
(3) Outputs[Output 1]
Appropriate and promising technologies to achieve GHG reduction as co-benefit are identified.
[Output 2 ]Effects of specialized low carbon technologies are evaluated through pilot projects.
[Output 3]
Facilitation measures considering stakeholders’ roles, institutional affairs and capacity building
systems are formulated.
(4) Inputs (at the time of Terminal Evaluation)
1) Japanese side:a) Long-term expert: Two personsb) Short-term expert: Approximately 52 persons, dispatched in 17 times from June 2009 to July
2013 (The 3 trips in 2009 were taken with budget from Japan Science and Technology Agency(JST).)
c) Equipment:・Gas Heat Pump (GHP) 2 units,
respectively including: Indoor unit, outdoor unit, pipe joint, transformer
Equipment Cost: GHP 2 units approx. 21 million JPY・Electric Heat Pump (EHP) 2 units,
respectively including: CO2 refrigerant electric heat pump, heat exchangers for hot and cold water
system, water circulation pumps (hot and cold side), Control board
Equipment Cost: EHP 2 units approx. 69 million JPYd) Counterpart Trainings in Japan: 7 persons (thirteen times in total)
Indian side:a) Assignment of Counterparts: 18 persons in total (including three full-time researchers)b) Provision of facilities: Daily necessities, office spaces and other relevant facilities forJapanese experts, depending on needs.
c) Local cost: 8.1 million INR (approx. 13 million JPY) (Including estimation untill Project end)

2. Evaluation Team
Members of
Evaluation Team

(1) Mr.Toru KOBAYAKAWA (Leader)
Advisor, Industrial Development and Public Policy Department, JICA
(2) Mr. Shunta YAMAGUCHI (Cooperation Planning)
Special Advisor, Industrial Development and Public Policy Department, JICA

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(3) Mr. Hiroshi ISHIZATO (Evaluation Analysis)
Senior Consultant, Esperanza Co., Ltd.
(4) Dr. Kenji YAMAJI (SATREPS Evaluation Leader)
Programme Officer (Low-Carbon Energy System Area), Research Partnershipfor Sustainable Development Division, JST(5) Ms. Misato UNOSE (SATREPS Evaluation Planning) , Assistant Programme
Officer, Research Partnership for Sustainable Development Division, JST
Period of Review

September 29th to October 12th, 2013

Type of Evaluation: Terminal Evaluation

3. Results of Evaluation
3-1 Summary of Achievements(1) Output 1: Fully achieved1) In view of the needs of India, LCTs with cross-sectorial characteristics and applicable toenergy-intensive processes, appropriate / applicable LCTs relevant to Indian conditions available inJapan were identified. Therefore, the Indicator, “Appropriate / applicable low carbon technologies
relevant to Indian conditions available in Japan in terms of technology cooperation are listed” hasbeen fully achieved.
2) Suggestions on the improvement of GHP and EHP technologies are put forward and reflected in
the draft final report (DFR6). Therefore, the Indicator, “Improvements of relevant low carbon
technologies are documented” has also been fully achieved.
(2) Output 2: Partially achieved1) Impact assessment report for GHP and EHP is in the process of development and documentation ofexperience and knowledge acquired so far from the detailed study (DS7) and baseline study isreflected in the DS reports and the DFR. Therefore, the Indicator, “Number of pilot project
documentation listed in Japanese low carbon technologies”, which actually refers to the completionof the Final Report, is considered to be partially achieved.
2) The tentative results of analysis as of August 2013 show that CO2 reduction by GHP is expected to
be 30-40% as compared to existing A/C, while that of EHP is to be 30-50% as compared to existing
systems like boiler and chiller. Therefore, the Indicator, “Amounts of CO2 reductions bydemonstration of technologies” is considered to be almost achieved, as the tentative results need
only to be further justified by more data arising from the operation of the pilot projects.
(3) Output 3: Partially achieved
Recommendations regarding the facilitation are now in the process of finalization. Although thetentative recommendations have been formulated and reflected in the DFR, further elaboration
based on the results of pilot projects are needed. Accordingly, the Indicator, “Measure to facilitate
low carbon technology transfer from Japan to India taking into consideration the technology needs,
6
7

Draft of the final report which will be finalized by the end of the research project.
Report which is submitted to SME selected for pilot project. It is based on in-depth site investigation, and provides details about how tocustomize the proposed technology to fit to the condition of the investigated site as well as the expected impact.

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opportunities and barriers” is regarded to be partially achieved.
(4) Achievement of Project Purpose:
Partially achieved as of the end of September 2013, and expected to be fully achieved by the endof March 2014.
Against the Verification Indicator of Project Purpose, “Recommendations/ suggestions regarding
the promotion of low carbon technologies as co-benefits are published”, achievements are
identified as follows:
1) Although the pilot projects are still in the process of implementation, the framework withrecommendations / suggestions for promoting LCTs based on the results and knowledge acquiredso far is in the making, and the Final Report, though still in draft, is expected to be publishedsubsequently.
2) The other publications of research results relevant to the Project are listed below:
・ Publications of research papers and other writings: 6 (1 research paper , 5 other writings)8・ Presentations in international and domestic academic conferences: 8 (international 4, domestic 4)
・ Verbal presentations in international and domestic academic conferences: 20 (India 18, Japan 2)
3-2 Summary of Evaluation Results(1) Relevance: Very high1) Relevance to Indian Policy・The 12th Five Year plan (2012-2017) states the need of India to adopt low carbon strategy forinclusive growth in order to improve the sustainability of its growth process and issues a list of
twelve focus areas including that of “Energy Efficiency Programs in the Industry”. It also stresses
that the industrial sector is one of the largest consumers of energy, and that improving theefficiency of energy use is critical for energy security, improving industry profitability andcompetitiveness, and reducing the sector’s overall impact on climate change.

・The National Action Plan for Climate Change (NAPCC) lays out eight missions for the country to
fulfill through by 2017, and as part to them, the National Mission on Enhanced Energy Efficiency(NMEEE) targets various energy efficiency concerns in the country including that of small andmedium enterprises (SME). While the SMEs accounts for about 45% of manufacturing output and
40% of exports of India, energy conversion processes in these companies remain inefficient.
Therefore, the Project’s purpose to promote LCTs focusing on SMEs is highly compatible to theabove-mentioned Indian policy.

2) Relevance to Japanese ODA Policy toward India
8

1 research paper: “Research on Application of Low Carbon Technologies in India” by Tomohiro Shishime, Yuki Shiga and Abdessalem
Rabhi, in 2011. (Environmental and Sanitary Engineering Research)
5 other writings (review paper, book, etc.): 1) “Environmental Issues and Sustainable Development in India” by Yasuhiro Sakai, Haruko
Ishikawa, and Yuki Shiga in 2009 (Environmental Management), 2) “Cooperation with Asian Countries (Summary)” by Kotaro Inoueand Sawako Takeuchi (“Section Meeting of Energy, Science and Technology”,2011, Science Council of Japan), 3) “Climate Change
Remedies and Environmental Business in India” by Yuki Shiga in 2011 (Business i. ENECO December 2011), 4) “Chapter 6 :Achieving Environmentally Sound Development in Asia through the Transfer of Low Carbon Technology”by Rabhi, A. and Shiga, Y.in2012 (IGES White Paper IV 2012), 5) “Technology Transferas a Measure to Tackle Global Warming in Asia” by Shiga, Y. and Rabhi, A
in 2012. (Policy Brief No19, IGES)

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・

The Project contributes to the following three medium-term policy objectives for India set in
Japanese FY 2007.
- Promotion of economic growth along with strengthening bilateral economic interactions- Poverty reduction and social sector development- Cooperation in the field of environment, climate change and energy

・As part of the actions taken to fulfill the above-mentioned policy objectives, JICA supports the
MSME Energy Saving Projects for two phases by providing financial assistance to MSMEs
through Small Industries Development Bank of India (SIDBI), and through refinance scheme of
SIDBI to Primary Lending Institutions and Non-banking Financial Companies, also providing
technical assistance to those financial institutions, thereby contributing to environmental
improvement, sustainable economic development.

・

The Project not only covers the field of environment, climate change and energy, but also
contributes to strengthening bilateral economic interactions through introducing Japanese LCTs to
India. It focused on Business to Business Technology Application, introducing Japanese LCT withcapacity building targeting especially the SMEs. Further, by improving energy efficiency, theProject will be able to pave the way to identification of other co-benefits effects such as improving
work place environment. Therefore, its relevance to Japanese ODA policy toward India is veryhigh.

3) Relevance to the Key Points of India-Japan Energy Dialogue
・The 7th Meeting of India-Japan Energy Dialogue between the Planning Commission of India and
METI of Japan also evidences the relevance of the Project. The Joint Statement of this meetingstates that “both sides decided to share information in the sectors where consumption of energy has
been growing in recent years, such as steel, cement, machine tools, inverter air conditioners andtransport, including in relation to SME”. Accordingly, the specific fields of LCT and the sectors forapplication targeted in the Project all fit into the key points of the Dialogue.

(2) Effectiveness: High, with significant improvement since the start of pilot projects
・

Output 1 has been fully achieved, though there was a more than one year delay in theimplementation process of Activities under Output 1 due to various reasons.

・The two Activities under Output 2 have been partially and mostly accomplished in spite of the factthat the installation and start of operation in the GHP and EHP pilot plants were far behindschedule at the time of Mid-term Review. Accordingly, the indicators set to verify theachievements of Output 2 have almost been realized as of the end of September 2013.

・

The two activities under Output 3 have respectively been fully and partially achieved, while
Indicator 3.1 which requires the formulation of recommendations of measures to facilitate LCTtransfer is partially achieved, as the tentative results have been achieved and need only to befurther elaborated on based on the results of pilot projects. Therefore, Output 3 is partiallyachieved and expected to be fully achieved by the end of the Project.

・As a result of achievements in the above-mentioned Outputs and Activities, the Project Purposexiv

has been partially achieved by September 2013 and is expected to be fully realized by the end of
March 2014.
(3) Efficiency: Significantly improved and satisfactory・The efficiency of the Project has improved towards the end of the Project and is satisfactory
considering the challenges of matching Japanese LCT and Indian SME’s demand. However, theprocess of identifying suitable LCTs and pilot SMEs relevant to Output 1 took more time thaninitially envisaged and delayed more than one year from the original plan, which has affected thesubsequent implementation of Output 2 and 3.

・

Despite the delay occurring at the early stage of the Project as well as its unfavorable influence on
the subsequent stages, efficiency has been largely improved owing to the joint efforts of allconcerned parties of the Project, the effective functioning of the cooperative research frameworkand the project implementation and monitoring system, the efforts made by the two sides topromote information sharing, and especially the strong commitment of C/P to the Project.

(4) Impact: Expected to be high subject to the achievement of the project purpose・The outreach and dissemination activities have led to greater awareness of clean technologies
available in Japan among business associations and SMEs in India. The presentations made in
seminars and especially the annual Energy Forums about the project in India, workshops conducted
at cluster level and visit by Japanese experts have resulted in this change. The information of the
project has been covered by the Indian newspapers and media which has attracted the interest ofother business associations. In addition, the project highlight has been placed in the internet, andhas been made widely known to SMEs through the online platform SAMEEEKSHA (Small andMedium Enterprises: Energy Efficiency Knowledge Sharing). The results of the GHP pilots werealso published as a case study in SAMEEEKSHA newsletter which is shared with the stakeholders
at a large scale. The dissemination activities will be scaled-up once the results from the pilot
projects are available.

・However, as the soaring price of natural gas is posing a threat to the adoption of GHP technology
in India, the trend of gas price is an uncontrollable external factor worthy of close monitoring.

(5) Sustainability: Potentially high1) Organizational Aspect
・After the implementation of pilot projects, concerned SMEs as well as local engineers continuously
learn and maintain the equipment for day to day operation. Discussion has started seriously how toapproach to relevant policy makers and private sectors.

・The exit strategy needs to be developed by the end of the project in order to sustain anddisseminate the LCT introduced widely. The research partners, IGES and TERI are expected tomake efforts to secure resources for activities like awareness raising, capacity building andadditional feasibility studies to identify potential for technology diffusion.

xv2) Financial Aspects
・The feasibility studies revealed the high initial cost of LCTs and availability of regularafter-services as key issues. These aspects cannot be solved under the Project framework.
However, the Project can emphasize the necessity of addressing the issues by efforts both fromJapanese producers as well as Indian and Japanese policy makers.

・It is encouraging that some international assistance agencies like UNIDO and Climate Works
Foundation (USA) have visited TERI to express their interest in the Project. Meanwhile, TERI has
contacted government agencies other than those member agencies of JCC, such as Ministry ofMicro, Small, Medium Enterprises (MoMSME) to inform them of the Project outcomes.

3) Technical Aspects
・

TERI engineers have gained the practical knowledge sufficiently through joining the field survey
with Japanese experts, including the initial assessments of various technologies in terms of theirapplicability to the Indian conditions. Through real time implementation of LCTs under the
existing SMEs, Indian engineers have many opportunities to develop and sustain their technicalcapacities.

・Training workshops and on-the-job training need to go further to teach them knowhow oftrouble-shooting in addition to the preventive knowledge of “dos and don’ts” and daily
maintenance. Activities related to best operation practices in CAs and IFs need to be taken forward
appropriately for further dissemination given the large scope of energy savings and GHG
reductions in this regard.

・The knowledge that TERI has acquired through this project can be utilized for the implementationand promotion of LCTs and practices through its regular energy audits and related projects in theindustry sector.

3-3 Factors Contributing to the Progress of the Project(1) Factors Related to Planning・No contributing factors were found related to the planning of the project.

(2) Factors Related to the Implementation Process・Close and collaborative relations between Japanese experts and Indian C/Ps have facilitated thecatching-up process of the Project’s implementation since the time of Mid-term Review.

・As C/P on the Indian side, TERI is playing an indispensably important role in the Project with acommendably strong sense of ownership. The contribution made by TERI includes not only
participating in the implementation of project activities under all the three Outputs, but also
undertaking the responsibility of management and monitoring regarding the pilot projects,
including the work of coordination between the Japanese side and SMEs on the Indian side.

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3-4 Factors Affecting the Progress of the Project(1) Factors Related to Planning・

Insufficient basic information collection prior to the commencement of the Project accounts forthe necessity to familiarize Japanese experts to Indian SMEs through a preliminary field survey
which could not produce concrete results at the initial stage, thus leading to the delay in theachievement of Output 1.

(2) Factors Related to the Implementation Process・The project’s implementation planning and schedule management did not seem to be well
performed at the initial stage, which resulted in the failure to shorten the period of delay.

3-5 Conclusion
The project has demonstrated two advanced low carbon technologies (EHP and GHP) from Japan at
SME units in India. Initial analyses show that the energy savings are in the range of 30-50%. The
benefits of the technologies —in terms of energy savings (reduced energy costs) and reduced carbon
emissions will be further confirmed after additional data collection. The soft technologies studied shallalso offer many opportunities to reduce energy consumption in SMEs at relatively low costs. The
Project has very high relevance with Indian and Japanese policies, addressing Indian SMEs’ needs forenhancing energy and cost savings by introducing Japanese low carbon technologies.
On the other hand, implementation of the Project was much delayed especially during the first half
due to various reasons. During the second half after the mid-term review, progress has been improved
including the pilot project implementation and data collection. However, with only six months
remaining up to the end of the project period, even more intensive activities would be required in orderto fully achieve the project purpose. To this end, it is imperative not only to draw and disseminate
lessons learned from the pilot project but also to develop capacities of the project stakeholders for
ensuring project sustainability.
3-6 Recommendations(1) Compilation of the Final Report
During the remaining project period, the findings and recommendations to introduce, replicate anddisseminate advanced LCTs to SMEs in India shall be compiled and finalized in the final project report.
It is important to clearly specify the implementation process which the project had taken, in order todraw lessons from joint research efforts under actual LCT applications. Regarding hard LCTs namely
EHPs and GHPs, it is strongly recommended that the project continues to collect necessary data fromproject sites to conduct more precise data analysis which shall lead to development of MRV protocols.
For soft LCTs such as induction furnace and air compressor system, it is recognized that the capacity
building activities have been widely conducted, and SMEs are expected to adopt the proposed best
operation practices. However quantitative evaluation needs to be performed to confirm the actual
impacts of these activities. Compiling the outputs of this joint research shall lead to future scientific andxvii

academic documentation and shall contribute to the achievement of the project purpose.
(2) Enhancing Activities for Future Replication and Dissemination of LCTs
In order to create awareness on the benefits of the LCTs, and their applicability in different industries,
a series of workshops/ seminars at cluster and state levels and feasibility studies in different industrial
applications are needed. IGES and TERI may plan to carry out dissemination exercise in the future withcooperation from other project partners including the private sector technology suppliers from Japan.
For future replication and dissemination of LCT’s and best practices, technical aspects such as
innovation and cost reduction potential shall be explored with financial aspects such as identification of
payback periods and necessary incentives. Moreover, the possibility of utilizing other incentives
schemes shall be investigated (e.g. credit lines provided by SIDBI). These recommendations shall bemade together with identification of specific roles and responsibilities of related stakeholders.
(3) Ensuring Sustainability of Pilot Projects
The EHPs and GHPs installed at the SME’s shall be utilized as a showcase, therefore, it would be
important that this new technology is utilized at the pilot sites even after the completion of the project.
In order to secure the sustainability of this technology, there shall be more emphasis on the capacity
building for SMEs to conduct trouble-shooting by themselves. Other options, such as making こ
maintenance contracts, including supervision activities and provision of spare parts, between SMEs andsuppliers shall also be explored with necessary facilitation by TERI and IGES.
3-7 Lessons Learned(1) Customization of LCTs
The LCTs that were customized in Japan require further fine tuning after their installation andimplementation in the pilot sites in India. Therefore the study of actual operation conditions at theinitial stage of the project and follow up services after commissioning shall be required.
(2) Institutional Arrangements
TERI and industrial associations played an important role to identify potential SMEs and to facilitate
the adaptation of LCTs. Therefore, a strong local partner with relevant networks is critical for the
success of the project.
(3) Consensus Development
For smooth implementation and effective project management in Science and Technology Research
Project, it is necessary to set consensus-based targets, clarify verifiable indicators and share them withstakeholders at the initial stage of the project.

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