You are on page 1of 14

A REPORT ON INDIAS BIOMASS POWER SCENARIO

Submitted By: SUDEEPPANICKER Roll No To : 20104008 :Prof .Rasananda Panda.

In Partial Fulfillment of the course ENERGY ECONOMICS PANDIT DEENDAYAL PETROLEUM UNIVEERSITY,GANDHINAGAR.

1.Introduction Biomass is biological material derived from living, or recently living organisms .In the context of biomass for energy this is often used to mean plant based material, but biomass can equally apply to both animal and vegetable derived material. (i) Chemical Composition

Biomass is carbon based and is composed of a mixture of organic modules containing Hydrogen, usually including atoms of Oxygen, often Nitrogen and also small quantities of other atoms including alkali, alkaline earth and heavy metals. These metals are often found in functional molecules such as the porphyrins which include chlorophyll which contains magnesium.

(ii)

Categories of Bio mass materials-

There are five basic categories of Bio mass material:


y y y y y

Virgin wood- From Forestry arboricultural activities or from wood processing. Energy crops-High yield crops grown specifically for energy applications. Agricultural residues-Residues from agriculture harvesting or processing. Food waste-From food and drink manufacture, preparation and processing, and post-consumer waste. Industrial waste and co-products-From manufacturing and industrial processes.

2. Bio Mass Energies in Asian Development Countries


y y

Biomass remains the primary energy source in the developing countries in Asia. Share of biomass in energy varies from a very high over three quarters in percent in Nepal, Laos, Bhutan, Cambodia, Sri Lanka, and Myanmar nearly half in Vietnam, Pakistan and Philippines nearly a third in India and Indonesia, to low 10 % in China and 7% in Malaysia.

3. Biomass Energy scenario in India


y y

Biomass contributes over a third of primary energy in India .Biomass fuels are predominantly Used in rural households for cooking and water heating, as well as by traditional and artisan industries. Biomass delivers most energy for the domestic use (rural -90% and urban -40%) in india .wood fuels contribute 56 percent of total biomass energy. Consumption of wood has grown annually at 2 percent rate over two decades.

Since the 1960 s,biogas systems have been implemented in India, but it was in 1981 with the beginning of the sixth 5-year Plan, and the formation of the National Project for Biogas Development (NPBD), when the drive to step up dissemination was taken, perhaps also reflecting the alarm of fuelwood shortages at the time. India offers a large potential to explore environmentally sustainable technologies. Before assessing the countries bioenergy production potential it is important to:(i) (ii) (iii) (iv) (v) Estimate the land availability for biomass production, Identify and evaluate the biomass production options yield/ha and financial viability Estimate sustainable biomass production potential for energy, Estimate the energy potential of biomass production, Assess the investment required and barriers to producing biomass sustainably for energy.

State-wise growth of biomass power (co-gen) in MW is given below:


State Upto 31.03.03 Andhra Pradesh Chattisgarh Gujarat Haryana Karnataka M adhya Pradesh M aharashtra Punjab Rajasthan Tam ilnadu Uttar Pradesh 160.05 11.00 0.50 4.00 109.38 0.00 24.50 22.00 0.00 106 46.5 483.93 37.70 26.00 1.00 7.80 44.5 12.5 129.5 69.50 2.00 16.60 11.50 22.5 14 136.1 12.00 16.50 72.50 6.00 7.50 48.5 163 22.00 85.80 29.80 40 8.00 42.5 228 33.00 33.50 8.00 38.50 75 79 266 8 18.2 172 271 9 9.88 12 41.5 34 5 3 .2 156.1 0.5 6 24 8 7 .2 1 155.5 28 31.3 308.7 372 1677 03-04 04-05 05-06 06-07 07-08 08-09 Total

(i)

Kerala slowing India s Bio mass advancements In Comparison to the Indian states of Andhra Pradesh, Karnatka, and Tamil Nadu the southwestern state of Kerala not dedicated to generating Bio mass power ,according to the govt india has potential of generating 21000MW biomass power and Farooq Abdulla the Minister of new and renewable energy the leading states in producing biomass power are AP, Karnatka, Tamil nadu Kerala has not done much, however the Abdullah ministry is implementing a project on

removal of barriers to biomass power generation in india assisted by UNDP/Global Environment Facility (GEF).The objective of the project is to identify barriers in large scale commercialization of biomass power .The project interalia involves establishment of 7-10 Model investment projects (MIPs) in different parts of the country to demonstrate the viability of investment and financing models.
Projected biomass demand

In India, the biomass demand for fuelwood, industrial wood and sawnwood in 1995 was 226 Mt, of which fuelwood accounted for 86.9 percent , industrial wood 7.68 percent and sawnwood, 5.4 percent. It is projected that the biomass demand will increase to 290 Mt by 2010, fuelwood accounting for 241 Mt; industrial wood, 26 Mt and sawnwood, 23 Mt. The sawnwood demand is projected to nearly double in 15 years. Problems of traditional Biomass energy use Most biomass energy in India is derived from owned sources like farm trees or cattle, or is Collected by households from common property lands y The biomass energy consumption is primarily limited to meet cooking needs of households and traditional industries and services in rural areas. In absence of a developed energy market in rural areas, most biomass fuels are not traded nor do they compete with commercial energy resources. y In developing countries, due to excess labour, biomass acquires no resource value so long as it is not scarce. In the absence of an energy market, the traditional biomass fails to acquire exchange value in substitution. Absence of market thus acts as a barrier to the penetration of efficient and clean energy resources and technologies. Competitiveness of Modern Biomass energy y

y y

y y y

Biomass based electric power generation technologies succeeded in niche applications such as supplying electricity in decentralized location and industries generating biomass waste. The large scale penetration of biomass power technologies depends on their delivered cost and reliability in direct competition with conventional electricity sources in centralized electricity supply. In India, the principal competing source for electricity supply is the coal based power. Biomass energy cost is highly variable, depending upon the source, location etc. Delivered cost of coal also varies depending upon the extraction costs and logistic costs which vary with the distance from the mine. Coal power plants are built with large scale technology, with a standard size of 500 MW. Scale of grid based biomass plants vary from a 1 MW to 50 MW. Assuming the base price of coal in India as Rs. 48 per giga joule (GJ) and biomass as Rs. 72 per GJ, Evidently, the delivered cost of electricity from a 50 MW biomass based power plants is higher compared to coal power plant by 15 percent. In future this gap can be expected to reduce due to three reasons - the scale

difference between coal and biomass plants shall narrow, cost of biomass shall reduce due to improved plantation practices and coal price shall increase since it is an exhaustible resource.

Government Incentives for Biomass Power Projects


Project Type Capital Subsidy Special Category States (NE Region, Sikkim, J&K, HP & Uttaranchal) Biomass Power projects Bagasse Co-generation by private sugar mills 25 lakh X (C MW)^0.646 18 lakh X (C MW)^0.646 Capital subsidy For other states

20 lakh X (C MW)^0.646 15 lakh X (C MW)^0.646

Bagasse - Co-generation projects by cooperative/ public sector sugar mills 40 bar & above 60 bar & above 80 bar & above 40 lakh * 50 lakh * 60 lakh * Per MW of surplus power ** 40 lakh * 50 lakh * 60 lakh * Per MW of surplus power **

(maximum support `8.0 crore (maximum support `8.0 crore per project) per project) *For new sugar mills, which are yet to start production and existing sugar mills employing backpressure route/seasonal/incidental cogeneration, which exports surplus power to the grid, subsidies shall be one-half of the level mentioned above. ** Power generated in a sugar mill (-) power used for captive purpose i.e. net power fed to the grid during season by a sugar mill. Escape Velocity for Indian Villages via Biomass Gasification Currently, over 60,000 Indian villages have no access to electricity, and most of these require less than 100 kW of installed capacity. Recent news items and reports suggest that India could see a significant acceleration in the adoption of biomass gasification as the route for power production, especially for capacities lower than 2 MW.Biomass gasification has significant advantages over other methods of biomass power. It can work well at small scales (as low as 50 kW), can use a wide variety of biomass feedstocks and also produce a valuable co-product in biochar. While the current installed capacity of biomass gasification based power plants in India is less than 125 MW, it is expected that by 2015 this could be as high as 500 MW, thus having a CAGR of over 40% for the period 2011-15.

Why Biomass Power Electricity has today become a basic necessity for not just the developed world, but also for the developing and underdeveloped countries. At the same time, the feedstocks used for power generation have been primarily fossil fuel based and non-renewable in nature. Not only will these fuels be exhausted, but they also give rise to harmful pollution, especially in the form of greenhouse gases that lead to climate change and global warming. It is important for India to start using renewable energy sources. It is equally important for India to explore sources that can bring power in a distributed manner and on small scales so that over 60,000 villages that have no access to power can benefit from electricity. This is where biomass power, and especially biomass gasification based power will come usefull. Indian Power production Scenario The average electricity consumption in India is still among the lowest in the world at just 630 kWh per person per year, but this is expected to grow to 1000 kWh in the near future. According to Central Electricity Authority (CEA), the peak electricity demand in 2008 was 120 GW of power, while only 98 GW could be supplied. According to an analysis by the Indian PV project developer Astonfield, this deficit is likely to grow to 25 GW by 2012. The Ministry of Power has set an agenda of providing Power to All by 2012 India plans to bridge the peak deficit using a number of avenues. Many of them rely on increasing the fossil fuel footprint and hence indeed increase our reliance and dependence on these fossil fuels. At the same time, the government also making serious efforts to accumulate the growth of renewable s contribution to power . Some of the highlights of the current power production status in india
y y y y

India s current installed capacity (end of 2010): 1,70,229 MW, from all sources Power generation capacity is mainly based on thermal and hydro, with about 11% from renewable energy. In 2010, peak power shortage was 12 %. Electricity demand is expected to rise by 7.4% a year during the next quarter of a century. This will see generation capacity increase five-fold in India is to supply this growing demand Total Installed Capacity of Renewable Power Sources

As of Feb 2011, India has over 18.3 GW of installed renewable energy capacity. Wind represents about 13 GW, small hydro represents 2.8 GW, and the majority of the remainder is from biomass installations Total Electricity Installed Capacity: 171.9 GW (Feb 2011) Source: CEA

Energy source Thermal Nuclear Hydro (large hydro) Other renewable energy sources

% Share in installed capacity 64.75% 2.78% 21.73% 10.73%

Need for biomass power in India More than 70% of India s population depends on biomass and about 32% of the total primary energy use in the country mainly in rural areas is still derived from biomass. Biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. Current Status of Biomass Gasification in India Even though biomass gasification provides the benefits of a well proven technology that can produce power at small scales using locally available resources, the total amount of power production from biomass gasification in India is relatively low. EAI estimates that the total installed capacity of biomass gasification based power production in India will be about 140 MW, out of a total of about 2600 MW of biomass based power (cumulative of grid connected and off grid). Of the total, bagasse based power generation has the lion s share (about 1400 MW), followed by combustion-based biomass power production (about 875 MW). Biomass-based power shows many potential benefits, some of which are listed below:
y y y y y y y y y y

Distributed generation Base load power Suited for rural areas Ability to have small, kW scale power production Rural economic upliftment Carbon neutral Efficient utilization of renewable biological sources Efficient utilization of renewable biological sources Reduces methane, a major GHG gas Low Cost Resource

Barriers to Biomass as a fuel for power Generation The primary barrier to Biomass power generation is the ability to obtain adequate supply of biomass at an economical price. In developing countries there is typically no organized no market for biomass fuel .As a result there is price consistency for biomass material lack of transportation infrastructure and the cost and availability of transportation fuels limit the development of regional markets. Biomass also faces significant transaction cost resulting from the quantities of biomass required to be collected from large no of farms. In addition to market barriers to biomass there are environmental and resource barriers eg-the availability of water for growing crops such as sugarcane or for cooling of power plant can limit the introduction of biomass power generation in certain geographical areas.

Policy and Regulatory Frame work. y y y y y In 1981, india created a government commission with overall responsibility for developing renewable energy and a separate department of Non-conventional Energy sources. The Ministry of new and Renewable Energy issued the Renewable Energy power Purchase Guidelines to all states in 1993. The Electricity Act of 2003 guaranteed interconnection for renewable energy sources. Almost all states have implemented some form of preferential tariffs for renewable energy generation. These measures have been strengthened by the National electricity policy 2005.the Tariff policy of 2006, the Rural electrification policy 2006 and the integrated energy policy report of Planning commission of india in 2006 Today India s power market mostly comprises regulated prices with a few states introducing open bidding on electricity through ten to fifteen year power purchase agreements

Policies-The Prime Minister of India has announced a goal of 10% share for RE or 10000 MW in the power generation capacity to be added during the period 2012. Renewable Energy Policy- A comprehensive RE policy for overall development of the sector with the following objectives formulated by MNES y y y Meeting the min energy needs through RE. Providing decentralized energy in agriculture ,industry ,commercial and household sectors in rural and urban areas and Providing Grid quality power.

Power ministry eyes biomass projects to light up rural India The power ministry, in a serious bid to replace diesel-based projects with biomass and micro-hydel power projects in various parts of the country, has asked the state-run Rural Electrification Corporation (REC) to carry out a comprehensive study. REC chairman and managing director Anil Kumar Lakhina told FE, There is a huge scope for biomass projects whereby projects with a capacity of 1 mw can be set up. Similarly, micro-hydel projects can be developed in various parts to add capacity. REC is in the midst of compiling relevant data in the house. It will soon engage consultants to prepare the report. The report will be submitted to the power ministry in 60 days. Power ministry sources said the idea was to encourage environment-friendly generation projects such as biomass and micro-hydel project and phase out diesel-based power from states and union territories. The Union Territory Administration has approached the REC and NTPC to prepare a roadmap for corporatization of the electricity department. According to the compilation made by the power ministry and the ministry of new and renewable energy, India has been able to utilise just around 30% of biomass energy s potential and has a future potential for almost 12 million biomass plants. As far as micro-hydel projects are concerned, it is estimated that the potential of small hydro power in the country is about 15,000 mw. As of now, about 4,250 potential sites have been identified aggregating to a capacity of 10,000 MW. Bio Mass Energies in Asian Development Countries Biomass remains the primary energy source in the developing countries in Asia. Share of biomass in energy varies from a very high over three quarters in percent in Nepal, Laos, Bhutan, Cambodia, Sri Lanka, and Myanmar nearly half in Vietnam, Pakistan and Philippines nearly a third in India and Indonesia, to low 10 % in China and 7% in Malaysia. Biomass Energy scenario in India Biomass contributes over a third of primary energy in India .Biomass fuels are predominantly Used in rural households for cooking and water heating, as well as by traditional and artisan industries. Biomass delivers most energy for the domestic use (rural -90% and urban -40%) in india .wood fuels contribute 56 percent of total biomass energy. Consumption of wood has grown annually at 2 percent rate over two decades. Thus India s offers a large potential to explore environmentally sustainable technologies. Before assessing the countries bioenergy production potential it is important to:(vi) Estimate the land availability for biomass production, (vii) Identify and evaluate the biomass production options yield/ha and financial viability (viii) Estimate sustainable biomass production potential for energy,

(ix) Estimate the energy potential of biomass production, (x) Assess the investment required and barriers to producing biomass sustainably for energy CONCLUSIONS y y Biomass energy provides about 14% of the world's energy (55EJ) and potentially as much as 450EJ by mid 21st century, an 8-fold increase. A major challenge is to modernise to provide what people want e.g. clean, cheap and convenient energy such as electricity, and ethanol fuel, in an environmentally sound manner. The implications for rural development could be far reaching if bioenergy can supply a significant proportion of this modern energy requirements. Many commercial possibilities could be created with many social and economic benefits. In addition, there is a considerable potential for improving the environment.

Executive Summary The total installed capacity in India has 150000 Mw but we are facing a power deficit of around 10% and this figure is steadily increasing .To meet this increasing demand and reduce the current peak shortage the Govt has planned to double the capacity to 300000 Mw over the next decade over 2010-2020. Biomass power scenario y y y y y y India has a Biomass availability of 150 Mn Mt per annum which gives us a potential to install 16000 Mw of Biomass based power plants. But only 600 Mw is installed and another 600 Mw is under implementation. To realize this huge potential we need an investment of Rs.100,000 crore, Government Regulations India is one of the countries that is most involved in developing the use of renewable energies and is trying make the opportunity for investors more attractive than costly.

Reasons for lack of investment in biomass sector are

y y

It costs around Rs 6Cr/Mw for a biomass plant where as only 4.5 cr/Mw is required for a thermal power plant. Availability of biomass fuel with high calorific value (>4000KCl/Kg).

Promotional Incentives y y y y y y Accelerated depreciation 80% first year (Boiler & Turbine) Income tax Holiday under section 80 1A for 10 yrs. Concessional import duty, excise duty exemptions on equipments and components required for initial setting of the project. Sales tax exemptions in some states. IREDA provides loan for Biomass projects. Preferential tariff in 14 states.

Biomass power Sector The Key drivers for biomass energy in india are the following: y y y y The Demand supply gap especially as production increases. A large untapped potential. Concern for the Environment. The need to strengthen indias energy security

Utilized and un-utilized potential biomass power in india

Barriers to accelerated Biomass power Development. In India the deployment of biomass power generation technologies has been slow. the difficulties facing the implementation of biomass power projects may differ slightly depending upon whether the projects are drawing their biomass resources from a captive source(sugar ,Rice mill etc) or from a distributed source(cotton stalks, mustered or rape seed stalk etc) The following specific barriers to development of biomass power projects have been identified y y y y y Absence of Effective Institutional and Financing Mechanism. Lack of Adequate Policy Framework. Lack of Effective Regulatory Framework. Lack of Technical capacity Absence of Effective Information Dissemination.

Limited Successful Commercial Demonstration model Experience. Calorific value of fuels Fuel Approx heating value Kcal/Kg Natural State Dry state 3500 3700 4400 2500 3000

A 1 2 3 4 5

BIOMASS Wood Cattle dung Bagasse Wheat and rice straw Cane trash, rice husk, leaves and vegetable wastes

1500 1000 2200 2400 3000

Coconut husks, dry grass and crop residues Groundnut shells Coffee and oil palm husks Cotton husks Peat

3500

3500

7 8 9 10

4000 4200 4400 6500

4000 4200 4400 6500

You might also like