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Building a Sustainable Energy Future for India

Building a Sustainable Energy Future for India. Distributed Generation using biomass technologies Vivek Gupta Saran Renewable Energy 8 - 9 February 2010. India – mostly rural. > 600,000 villages in India 75% of population in villages

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Building a Sustainable Energy Future for India

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  1. Building a Sustainable Energy Future for India Distributed Generation using biomass technologies Vivek Gupta Saran Renewable Energy 8 - 9 February 2010

  2. India – mostly rural • > 600,000 villages in India • 75% of population in villages • 60 to 70% directly/ indirectly dependent on agriculture • Almost all of rural population dependent on different forms of Biomass for energy • 188 million tons/ year of surplus biomass  potential of 24,000 MW of power • 144 mn tons/ year Agro waste (18,000 MW) • 44 mn tons/ year Forest waste & wastelands (6,000 MW) • Source: National Biomass Resource Atlas – MNRE, IISc Huge potential of harnessing biomass for energy

  3. Cooking/ Heating Lighting Micro-industries Open Chullas/ fires Kerosene lamps Diesel gensets Energy requirement in rural areas…how are they being met currently Inefficient Polluting Health hazards • Conventional energy – LPG, Grid power (fossil fuels) • Renewable sources – Biomass, Solar, Hydro, etc

  4. Cooking Lighting Micro-industries Advanced stoves Biomassgasification/ combustion Biogas Biofuels Modern forms of using biomass Biomass gasification- Advantages: • Triple bottom line • Income generation for farmers & employment • Clean & Environment friendly • Lower running cost – than current sources of power • Distributed generation: Lower T&D losses

  5. What SRE has done till now • Set up an independent power plant of 120 kW in Garkha village Innovations: • Water-resistant and fast growing “Dhaincha” plant grown in waterlogged fallow land used as raw materials • Medium voltage distribution to cover greater distances • Used existing diesel genset owners as franchisees to distribute electricity • Not competing with local biomass • Use of fallow land

  6. Dhaincha plantations

  7. Benefits Replaced 25 diesel gensets used by micro enterprises Replaced 10 diesel water pumping stations (for irrigation) Increase income of farmers Dhaincha plantations : 50 acres of waterlogged fallow land utilised (one third of cost is raw materials ) Employment in collection & transportation of biomass Employment in power plant Benefit of >Rs. 55 lacs per year for farmers and micro-industries One small plant is improving the lives of >1500 people Thousands of such plants across can change the life in rural India

  8. Challenges • High capital costs • Long gestation period • Building raw material linkages • Users to switch to electricity from diesel engines • Price of biomass increasing disproportionately in project vicinity • High transportation costs • Technology: Maintenance, Training • Makes such initiatives/ projects riskier and difficult to implement • While biomass plants have long term viability, they are not being set up We have demonstrated a successful model in our part of the country

  9. Economics –plan versus actual • Lower utilisation – higher capital cost per unit • Lower biomass availability

  10. Identified locations and prepared project reports Obtained Govt. approvals Trained local employees Hurdles: Investment finance crucial need Currently, bank finance is practically impossible: Biomass plants perceived as ‘riskier’ and Banks in Bihar have lowest credit-deposit ratio in India Low purchase price (tariff) of power from biomass The way forward

  11. Enablers to make low-carbon energy viable • Carbon credits • Renewable Energy Certificates – for small & large plants • Capital subsidies or grants • Soft loans • Higher tariff for grid linked biomass plants • Proper utilisation of wastelands for raw materials • Regulations/ certifications of suppliers by MNRE • Possible to set up large number of biomass based power plants • Energy security and social development

  12. Govt. initiative of rural electrification • RGGVY (Rajiv Gandhi Gramin Vidyutikaran Yogana) has been implemented to cover large number of villages • Large number of small villages scattered throughout the country • Cost of setting up distribution infra is very high • T&D losses are high • Breakdown/ theft of infrastructure Decentralised model: • Decentralised generation cost is higher • But Distribution is much cheaper and reliable • Social benefits - local employment and income generation Decentralised model is better and cost effective Your logo here

  13. Thank you for listening

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