Feasibility of Solar Energy Generation for Dairy Processing

The entire dairy value chain from village level milk pooling points to product delivery is quite energy-intensive. Extensive use of solar energy in the dairy value chain can significantly reduce operational cost and ensure the usage of clean energy. In that regard, KfW aims to develop a joint program with the National Dairy Development Board (NDDB) that supports the implementation of solar energy applications for dairy processing facilities in the cooperative sector in India.

The consumption in dairy processing plants is mostly thermal energy and in part also electrical energy for the operation of machines and auxiliary applications. The consumption in the collection and chilling sites is purely electrical energy used for chilling, pumping and auxiliary applications. Consequently, a feasibility study is being ongoing to develop adequate solar energy applications suitable for each of the two stated areas. 

The study is expected to develop sub-programmes that support the sustainable application of adequate solar technologies to cover the respective energy needs of each of these three areas. In doing so the consultant will further recommend the most suitable technological solutions, to establish the economic viability of the suggested investments and to analyse the environmental and social impacts of the proposed investments.

KfW aims to provide a Line of Credit to the National Dairy Development Board (NDDB), through the Ministry of Agriculture Government of India, for the development of solar applications across the dairy value chain in India. The aim is that NDDB shall further on-lend the funds to state and district dairy cooperative societies (who are the partners of NDDB), such as villages, district and state-level cooperative societies owning village collection centres, MCCs and dairy processing plants. The different stakeholders will use the funds to implement solar-based energy-supply applications at their dairy processing plants, village chilling and collection centres. Ongoing feasibility study expects to provide the savings from the application of solar energy across the dairy value chain or at specific points of the value chain, then the proposed loans would be routed to the ultimate beneficiaries of the loan i.e. the state and district cooperative societies through NDDB.