ABSTRACT (57%); oil, being 213 million tonnes (29%); natural

                                                   ABSTRACTThis study traverses the potential of biomass energyfor power generation in India. India being an agrarian economy seriously needsto review the management of the surplus waste it produces from agriculture,industry, forestry etc. Power capacity and the surplus of raw materials suitedto this carbon neutral energy form are the key factors with respect toinfrastructure which need to be accounted for, so that the power potential ofthis source of renewable energy is completely realised. Once the availabilityand magnitude of these factors are taken into consideration, the next importantaspect which follows is the economic feasibility of the power plants.

For this,it is imperative that a thorough benefit cost analysis is undertakenconsidering all the vital components of cost.                                 OBJECTIVES OF THE STUDY With this study the following objectives are to beachieved: 1.    Toanalyse the factors with respect to infrastructure which influence the need ofbiomass energy in India. 2.

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    Toanalyse the cost structure of a biomass power plant with reference to theBiomass power plant in Maharashtra.                RATIONALE BEHIND TAKING UP THESTUDY Asper the British Petroleum Review of World Energy, India in the year 2016 had consumed724 million tonnes oil equivalent in the category of primary energy. Consumption,according to this review, is divided among coal, with an approximate 412million tonnes (57%); oil, being 213 million tonnes (29%); natural gas, at 45million tonnes (6%); hydro-electricity, with the value of 29 million tonnes(4%); biomass and other renewable sources, amounting to 17 million tonnes (2%); and nuclear energy standing at amere 9 million tonnes (1%).Coaland oil continue to wield influence in terms of the energy requirement in Indiahaving a lion’s share in the energy market. However, at the same time Indiabeing a signatory to the COP21 agreement has to submit its “intended nationallydetermined contributions” (INDC’s) stating their plans to reduce GHG emissions.

One of the key tenets of theINDC is to increase the share of installed capacity of biomassenergy to 10 GW by the year 2022. The study is an attempt to further theanalysis of the scope of biomass energy as a renewable source and the potentialit carries in the generation of power.  LITERATURE REVIEW Therehas been a realization on the necessity to look up for the renewableenergy-based alternatives so as to meet the energy requirements in asustainable way.  In India, among themany renewable energy sources, technologies centred on bio energy have been encouragedfor meeting the rural electricity needs (Ravindranath, 2010). Further, of allthe bio energy technologies, the biomass gasifier option for meeting the ruralelectricity needs of domestic, agricultural and rural industrial activitiesamong many others is shown to have a large potential.According to a study conducted by N.H.

Ravindranth,H.I. Somashekhar and Jayasheela Reddy at the Indian Institute of Science,Bangalore, on the performance of a gasifier in the village of Hosahalli,Karnataka, a 20kw energy generator was used for lighting the village anddrinking water supply was provided using biomass electricity since the year2000, catering to electricity needs of the village, 85 per cent of the time forthe past six years.

Indiahappens to have a large potential of biomass feed stock, as the amount ofagricultural and forest residues it produces will suffice to make theseresource inputs efficiently utilised in the biomass generation system (AnilKumar et al, 2015).   CHAPTER 1: INTRODUCTION Witha pressing concern at the global front and in India on the usage of fossilfuels, it becomes imperative for India to start utilizing its renewable energysources to the fullest capacity. India being the 7th largestcountry in the world and covering a resounding 328million hectares is certainly bestowed with various renewablesources of energy. Among the renewable energy sources available, biomass hasplayed a significant role especially in India, as it comprises of the majorenergy sources to majority of households in India. Biomass energy is defined asthe utilization of organic and complex classes of feed stocks with a prominent energypotential as to apply different technologies for the recovery of energy. India produces about 450-500 million tonnes ofbiomass per year.

Biomass provides 32% of all the primary energy use in thecountry at present. 1.1.       Resource potentialfor biomass energy Defined as the bio residueavailable by means of water based vegetation, forest or organic waste, the by-product of crop production, agro or food industrial waste, there are a plethoraof biomass resources that are available in India in different forms. 1.1.

1    CropResidue as Input Resource Indiahas an abundance of land area under agriculture, and as a result residues areproduced here in massive amounts. These residues act as the contents of the biomassfeedstock to be further used for energy generation. All the organic entitieswhich are produced as the by-product from processing the harvesting ofagricultural crop are referred to as agricultural residues. These residues canbe further classified as primary and secondary residues. Residue obtained inthe field at the time of yield is known as field based residue that is primaryresidue, whereas those which are assembled during processing are known as secondaryresidue. Sugar cane tops, rice straw etc.fall under primary residue whereas bagasse,rice husk etc are instances of secondary residues.

       1.1.2.Biomass and Installation CapacityThe capacity installed of several grid- interactiveBiomass power during the commencement of the 11th Plan period in the countrystood at 1,184 MW. It had increased to the tune of 4,123 MW in March 2014,which accounted for 23 per cent of India’s Biomass potential standing at 17,981MW.  Table1: Total Installed Capacity as on July 31st, 2016 SOURCE TOTAL CAPACITY INSTALLED (IN MW) TARGET FOR 2022 (IN MW) WIND POWER 27,441.15 60,000 SOLAR POWER 8,062.00 1,00,000.

00 BIOMASS POWER 4,860 10,000 SMALL HYDRO POWER 4,304.27 5,000.00 TOTAL 44,667.42 1,75,000 Source:Ministry of New and Renewable Energy (MNRE) As per the data of the MNRE on the total capacityinstalled of the various renewable energy power plants, Biomass powerconstitutes approximately 11 per cent of total capacity installed in the year2016.

As for the target for the year 2022, the biomass hasto cover more than halfway to achieve its ambitious target of 10,000 MW ofinstallation capacity. 1.1.

3. THE COSTS OF BIOMASS ENERGY IN INDIA Thecosts associated with the production of biomass energy fall in an erratic and widerange on account of the variety of feedstock being used. The cost of biomassenergy also depends upon the distance of the feedstock from the power plant. Also,some forms of Biomass costlier than others. Co-generation plants or CHP plantsare known to be the cheapest biomass plants while the standalone biomass plantswhich are capable of using a variety of feedstock are in fact expensive innature. Unlike the solar and wind power, the investing in power plants ofbiomass is usually not fixed. CHAPTER 2: DATA ANALYSIS AND INTERPRETATIONS 2.1.

       Research Methodology The study makesuse of secondary data on the key components of biomass energy from variousrelevant sources at governmental and institutional levels. The dependentvariable in this study is the power potential of the renewable energy that isbiomass in the region while the independent variables include suchinfrastructure factors as the availability of raw materials i.e., surplusavailability of biomass residue and the technical input for power generationi.e., the capacity of the plant set up in the region. 2.

2.       Key factors of power generation The biomass energy generationin India is dependent on the key factors which include the surplus of biomassgenerated in the area as well as the capacity of biomass gasifiers set up inthe area under consideration.Surplus, here, refers to theavailability of crop residue after the agricultural crop is harvested.The plant capacity refers tothe number of grid connected and off-grid plants set up in the region.It is pertinent to say that,Power Potential of a Biomass Plant=f (Availabilityof surplus agro residue, plant capacity of the biomass plant)Letthe null hypothesis)be that the power potential of a biomass plant be independent of theavailability of surplus and plant capacity of the biomass plant.Thenthe alternative hypothesis  will be clearly the fact that there is somelevel of dependency of the power potential with surplus availability and plantcapacity.Thatis, PP = (PC)                                                                               … (1)Where, PP is the power potential ( in MWe)AA is the agro-residue availability (in kT/yr)PC the plant capacity ( in MW)PC, the plant capacity  Table1: State wise data on surplus availability, power potential and total installedcapacity as reported in July 2016  States Available Agro-residues Biomass Surplus (in kT/Yr) Power Potential (in MWe) Total Capacity(in Mwe) Andhra Pradesh 4259.4 520.

8 389.75 Bihar 5147.2 640.9 43.42   Chhattisgarh 2127.9 248.

3 264.90   Gujarat 9058.3 1224.8 55.90   Haryana 11343 1456.

9 52.30   Karnataka 9027.3 1195.9 737.28   Madhya Pradesh 10329.

2 1373.3 36.00   Maharashtra 14789.

9 1983.7 1,112.78   Odisha 3676.

7 429.1 20.00   Punjab 24843 3172.

1 140.50   Rajasthan 8645.6 1126.7 111.30   Tamil Nadu 8899.9 1159.

8 662.30   Uttar Pradesh 13753.7 1748.3 936.7 Uttarakhand 638.

4 81 30 West Bengal 4301.5 529.2 26.

00   Source: MNRE Annual Report 2015-2016Table2: The Regression Model Dependent Variable Independent Variables Power Potential Of Biomass Energy –        Surplus availability –        Total Plant Capacity 2.1.1 Findings and InterpretationsTable3: Summary output Regression Statistics Multiple R 0.961444152 R Square 0.924374857 Adjusted R Square 0.914291505     Coefficients P-value Intercept 739.5679611 0.

636716901 Biomass Surplus (kT/Yr) 15.34765327 0.027986603 Plant Capacity (MW) 92.26831015 0.040076309  The data analysis carried outin Microsoft Excel shows that the equation (1) can be represented as follows:PP= 739.

567+ 15.347AA+92.268PC                                             …(2)Since the p values of both thevariables in the regression statistics are less than 0.05, there is astatistically significant relationship between the dependent and the twoindependent variables.The variable biomass surplusavailability is relatively more statistically significant than the plantcapacity as it has a p value lower than the latter.From equation (2), thefollowing statement can be deduced:If the surplus availability of agro residueincreases by 1 kT/Yr,the power potential of the plant goes up by about 15.4MWe.

If the plant capacity increases by 1 MW, keeping the other variableconstant, the power potential will go up by approximately 92 MWe.Again, one can say if the surplus availability andpower capacity were to be zero; the power potential would have been 739.567MWe. 2.3.

       Cost Analysis of Biomass Energy in India withreference to a power generation system in Akola, Maharashtra The biomass gasifier set up inthe region of Akola, Maharashtra has an installed capacity of 10 kilo wattwhich was functional from March, 2009 and has a lifetime of 20 years.The feasibility of any plantis ascertained on the basis of three prominent types of costs viz, the CapitalCosts, the Operations and Management Costs and the levelised cost of replacements.These three cost structures are studied with respect to the plant in Akola.The sum total of the threecost components yields the cost of energy for the biomass power generationsystem. Table 4: Cost and Returns ofthe 10kw biomass plant (operational for 22h) Basis Value(INR/kWh) Capital Cost 1.255 Operation and Maintenance Cost 3.

46 Levelised Replacement Cost 0.0246 Total Cost Of Energy 4.7396 Return Per Unit 6 Present Worth Of Benefit(INR) 2824138 Present Worth Of Cost(INR) 2280746 Source: Institute of Agricultural Engineering andTechnology, MaharashtraAnalysis and Interpretation:  As per the 2014 report of theinstitute, the various cost and benefit components are tabulated in Table 4.

The capital cost from thevalues constitutes approximately 26.5% of the total cost of energy.The operational andmaintenance cost gather a major share with about 73% while the smallest shareis occupied by the levelised replacement cost which has an approximate share of0.05%.

A benefit to cost ratio is theratio of the present worth of benefit to the present worth of cost. As per thetable, this value will be 1.238 which is greater than 0, indicating the factthat the implementation of this power generation system is feasible. This isalso evident from the observation that Return per unit exceeds the total costof energy by a value of 1.264 which is in fact the profit per unit.

  CHAPTER 3: CONCLUSION  An analysis of the resources and the corresponding potentialof biomass have been brought to the fore through this study. It is convenientto conclude that a high degree potential exists for the exploration of the availablebiomass in India so as to convert it to energy to be further used for powergeneration. Scores of bio energy sources in various forms are available in ourcountry. Diversesources can be exploited optimally to obtain waste biomass which includes thelikes of agricultural waste, food wastes, industrial wastewaters generated in hugevolumes which hitherto hint the tendency among people to divert it to nonconventional sources of energy. A number of agencies, institutions, industriesare adopting the practice of conversion of different waste biomass to energy inIndia and reporting benefits from the same. The cost analysis in terms of the key componentsnamely the capital cost, the operation and management cost as well as thelevelised replacement costs are important to the understanding of the economicfeasibility of a power project, especially to a biomass power plant where thesecosts change the most depending on the nature of the plant and the residueunder consideration. The sum total of these costs gives us the total cost ofthe energy plant.

Weighing the costs and returns can tell us whether the plantis economically feasible (which means a benefit cost ratio greater than 0) ornot so (for a benefit cost ratio less than 0). For the case of the biogas powerplant in Maharashtra, the power generation project is commercially viable. References:1 Ravindranath, Somashekhar, Jayasheela Reddy.

Biomass energy and Environment,20102 Vivek Khambalkar, Dhiraj S Kharale. Cost andFeasibility of gasifier plants,20093 Biomass Knowledge Portal, MNRE, Govt ofIndia,2016-174 Anil Kumar, Nitin Kumar, Ashish Shukla. A reviewof biomass energy resources, potential, conversion and policy in India, 20155 Ravinder Kumar. A cost analysis of coal-firedpower plant,20156 Central Electricity Regulatory Commission.Annual Report,20167 Kamrul Hassan ,Karthikeyan Natarajan, PaavoPelkonen, Anas Zyadin and Ari Pappinen. Feedstock supply for biomass plantdevelopment in India,2015