DPR of Hulasganj Cluster - 5dec2012

Detailed Project Report
on
Rural Electrification through Renewable based
Decentralized Distributed Generation System
In Hulasganj Block of Jehanabad District in Bihar
using Locally Available Renewable Energy Resource
Submitted to
MINISTRY OFPOWER
&
UNDP
Prepared by:
ABPS INFRASTRUCTURE ADVISORY PVTLTD
December 2012
DPR for Rural Electrification throughRE based DDG System
in a cluster of ContiguousVillagesin Hulasganj Block of Jehanabad
using Locally AvailableRenewableEnergy Resource
Page 2
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ABPS Infra has taken due care and caution in compilation of data as has been obtained from
various sources including which it considers reliableand first hand. However, ABPS Infra does
not guaranteetheaccuracy, adequacy or completeness of any information and it not responsiblefor
errors or omissions or for theresults obtained from the useof such information and especially
states that it has no financial liability whatsoever to thesubscribers / users of this Report.
No part of this report can bereproduced, stored in a retrieval system, used in a spreadsheet or
transmitted in any form or by any means without permission of ABPS InfrastructureAdvisory
PrivateLimited.
in a cluster of Contiguous Villagesin Hulasganj Block of Jehanabad
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TABLE OF CONTENTS
1 Introduction..............................................................................................................7
2 Cluster finalization for DPR preparation....................................................................9
3 Selected Cluster Profile...........................................................................................12
3.1 Hulasganj block..............................................................................................................12
3.2 Selected cluster for rural electrification through RE based DDG plant...........................13
3.3 Demographic details of selected cluster........................................................................15
4 Cluster Energy Plan.................................................................................................17
4.1 Present energy use pattern............................................................................................17
4.2 Estimation of load and demand.....................................................................................19
4.2.1 Residential load...............................................................................................................19
4.2.2 Street light load...............................................................................................................19
4.2.3 Community building load................................................................................................20
4.2.4 Non-residential commercial load....................................................................................20
4.2.5 Sizing of RE based grid interactive DDG plant.................................................................21
4.3 Potential renewable energy resource............................................................................22
4.4 Assessment of Biomass Availability...............................................................................25
5 RE based grid interactive DDG plant........................................................................28
5.1 Biomass Gasification Technology...................................................................................28
5.2 Site Requirement...........................................................................................................31
5.3 Requirement of Biomass................................................................................................31
5.4 Proposed DDG plant site................................................................................................32
5.5 Specifications for biomass gasifier based DDG plant......................................................32
5.6 Estimated project cost...................................................................................................33
5.7 Schematic and layout of proposed DDG plant................................................................35
5.8 Streetlight System..........................................................................................................37
6 Power Distribution Network (PDN)..........................................................................38
6.1 Distribution Transformers (DTs) requirement................................................................39
6.2 Distribution Line Requirement.......................................................................................40
6.3 PDN Cost Estimation......................................................................................................44
6.3.1 Cost Estimate of Distribution Transformers....................................................................44
6.3.2 Cost of Distribution Lines................................................................................................45
7 Financial Analysis of Proposed RE based DDG Power Plant......................................47
7.1 Cost of Electricity Generation.........................................................................................47
7.2 Sensitivity Analysis.........................................................................................................49
8 Potential Project Implementation Models...............................................................52
8.1 Independent Power Producer Model.............................................................................52
8.2 Distributed Generation based Distribution Franchisee (DGBDF)....................................54
8.3 SWOT Analysis of Implementation Models....................................................................56
8.4 Recommendations.........................................................................................................56
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9 PROJECT IMPLEMENTATION PLAN...........................................................................58
9.1 Project Site and Grid Connectivity..................................................................................58
9.2 PDN and Asset Management.........................................................................................58
9.3 Protocol for Power Generation and Grid Management.................................................59
9.4 Arrangement for Insulation of Agricultural Load............................................................60
9.4.1 Feeder Separation...........................................................................................................60
9.4.2 Franchisee Arrangement.................................................................................................60
9.4.3 Demand Response...........................................................................................................60
9.5 Franchisee Arrangement for MBC..................................................................................61
9.6 Criteria for PD selection.................................................................................................61
9.7 Contractual Arrangements.............................................................................................61
9.7.1 Franchisee Agreement....................................................................................................62
9.7.2 Power Purchase Agreement............................................................................................64
9.8 Financial assistance needed to ensure financial viability...............................................65
9.9 Bid Process Management...............................................................................................66
10 Roll out plan for proposed RE based DDG project....................................................67
Annexure A information data base of Villages-Hamlets in selected cluster.....................68
Annexure B: Economic assessment of agro-residue as energy resource...........................78
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List of Tables
Table 2.1Comparative Analysis of Potential Short-Listed Clusters...................................... 10
Table 3.1 Village & Hamlets in the Identified Cluster ......................................................... 15
Table 3.2 Demographic Details of SelectedCluster.............................................................. 16
Table 4.1Electrification Status and Present Energy Usage in Selected Cluster................... 18
Table4.2 Estimation of Residential Load............................................................................. 19
Table4.3 Estimation of Streetlight Load.............................................................................. 20
Table4.4 Estimation of Community Building Load............................................................. 20
Table4.5 Estimation of Non-Residential Productive Load................................................... 20
Table 4.7 Hourly scheduled load curve for sizing of RE based DDG power plant ................ 23
Table 4.8 Assessment of RE resource (Biomass) Availability within Selected Cluster.......... 26
Table 4.9 Potential Capacity for Power Generation............................................................. 27
Table 4.10 Resource (Biomass) Feasibility Check................................................................. 27
Table 5.1 Space requirement for Biomass Storage................................................................ 32
Table 5.2 Details of the Land Available for the DDG Plant in the Cluster........................... 32
Table 5.3 Specifications and performance parameter of gasifier based power plant............... 32
Table 5.4 Project cost of typical 1MW gasifier based power plant........................................ 34
Table 6.1 Panchayat wise estimated DT capacity requirement (kVA).................................. 39
Table 6.2 Capacity wise Requirement of DTs..................................................................... 40
able 6.3 Requirement of Distribution Transformer Capacity.............................................. 41
Table 6.4 Cost estimation of capacity addition of DTs required in the cluster ...................... 44
Table 6.5 Cost Estimation of 400V PDN Line in Cluster .................................................... 46
Table 6.6 Cost Estimate of Total PDN Infrastructure of Cluster (in Lacs)........................... 46
Table 7.1 Various parameters and assumptions for financial analysis................................. 48
Table 7.2 Cost of generation (COG) of electricity from biomass gasifier power plant........... 49
Table 7.3 Cost of generation (COG) and Viability Gap under different scenarios................ 50
Table8.1 SWOT analysis of IPP model............................................................................... 56
Table8.2 SWOT analysis of DGBDF Model ....................................................................... 56
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List of Figures
Figure 3.1Map of Jehanbad district and Hulasganj block..................................................... 12
Figure 3.2 Map of Hulasganj Block, and short-listed cluster in the Block............................ 13
Figure 3.3 Schematic of selected cluster showing villages-hamlets & existing PDN details. 14
Figure 4.1 Hourly load scheduling pattern in the cluster .................................................... 24
Figure 5.1Schematic Diagram for Biogasifier ..................................................................... 30
Figure 5.2 Schematic Diagram proposed biomass Gasifier Power Plant............................... 35
Figure 5.3 SchematicDiagram proposed biomass Gasifier Power Plant............................... 36
Figure8.1Operational Structure of IPP Model .................................................................. 53
Figure8.2Operational Structure of DGBDF Model ........................................................... 55
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1 INTRODUCTION
India being agriculture oriented country; the Government of India (GoI) views Rural
Electrification as a major prime mover for rural development for the improvement of
Human Development Index. Electricity is also considered as the basic pre-requisite for all
industrial activity and also contributes significantly to increasing agricultural productivity,
jobs and income generation activities. Government has given the priority for the rural
electrification in several policies and acts, also initiated several programs at the national
level to promote electrification of remote villages.
Renewable energy technologies have substantial potential to provide a reliable and secure
energy supply as an alternative to grid extension or as a supplement to grid-provided power
and therefore ideally suited to electrification of rural and especially remote areas which are
still lacking to access to modern energy source like electricity; major barrier perceived for
rural development. In India, locally available, renewable energy sources such as solar
energy, biomass, wind, or hydro energy can go a long way in alleviating the problem of lack
of electricity and can play a prominent role in extending access to energy. Government
promoted the deployment of various renewable energy technologies, which include family
biogas plants, solar street lights, solar lanterns, solar PV systems, biomass gasifiers and
micro-hydro plants. Despite all such policy interventions across the years, actual
performance on rural electricity services continues to be dismal.
In 2005, the Ministry of Power launched Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY) merging all ongoing rural electrification schemes, under the initiative Power for
all by 2012. The RGGVY scheme aims to provide electricity to rural areas through extension
of existing grid and by augmenting the infrastructure. Under RGGVY government has set
aside Rs540 crores subsidy for electrification of hamlets and habitations which are not being
covered under the scheme on account of their remote locations through Decentralized
Distributed Generation (DDG) scheme as sub component of RGGVY. The development of
DDG based plant shall be focused on the harnessing the suitable renewable technologies
which is based on the locally available resource for generation of electricity in economical
way and distributing it in the identified cluster.
In the recent year the implementation of DDG has shown that remote village/ hamlets are
spread very thinly and not offer the economy of scale to the project developers. On the other
hand there are many villages which are electrified and grid connected, but do not receive
adequate supply of electricity. Such villages are presently not covered under DDG.
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With continued increasing energy shortages it is difficult to expect significant improvement
in energy access situation in near future. Though India has embarked upon an ambitious
programme of rural electrification viz. RGGVY, which may be expanding the grid
connectivity rapidly to several uncovered areas, the actual supply of electricity through the
established grid would still remain unpredictable and limited. Therefore providing
accessible, affordable and acceptable electricity to villages for ensuring energy security for
the poor would continue to be a major concern in electrification.
Recently MoP has also relaxed the guidelines of DDG for Left Wing Extremism (LWE)
affected districts for decentralized generation and distribution and has allowed coverage of
grid connected villages where supply of electricity is less than 6 hours or under-electrified.
In order to achieve the target of complete electrification the un-electrified villages, Ministry
of Power (MoP) has been implementing a project Access to Energy enhancing
effectiveness in electricity distribution and end-uses with core funding from UNDP with
focus on up-scaling of DDG (Decentralized Distributed Generation) for achieving goal of
overall sustainable development in remote rural India. Under this initiative, UNDP is
supporting the up-scaling of DDG system as one of the core components of the project. As
part of the initiative, Access to Energy wanted to develop a Detailed Project Report (DPR)
and a Feasibility study of rural electrification through renewable based decentralized
distributed generation in Bihar.
This report is Detail Project Report (DPR) on Rural Electrification through Renewable based
Decentralized Distributed Generation System in a selected cluster of 42 contiguous villages
(a mix of un-electrified and under-electrified) in Hulasganj Block of LWE District of
Jehanabad in Bihar, using locally available biomass resource and solar energy. This DPR
gives the requisite details on the cluster identification, sociodemographic analysis of the
selected cluster, estimation of different types of load and associated energy demand for
different power consumer categories as well as estimation of biomass resource availability
within the selected cluster for the deciding the capacity of the proposed biomass gasifier
power plant.
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2 CLUSTER FINALIZATIONFOR DPR PREPARATION
This section gives details of step by step approach adopted for selecting and finalizing the
selected cluster of contiguous habitations comprising of un - & under-electrified
villages/ hamlets for DPR preparation.
In consultation with key stakeholders of the Project Steering Committee, a cluster of
villages/ hamlets was identified in Hulasganj block of Jehanabad district of Bihar. Various
steps involved in finalizing the cluster are summarized below:
Based on the secondary information for the targeted LWE districts, 3 potential blocks
viz Kaler (Arwal district), Haspura (Aurangabad district) and Manpur (in Gaya
district) were identified in October 2011
In November 2011, 12 potential clusters in these blocks not covered under RGGVY
with good mix of under-electrified & un-electrified villages/ hamlets were identified.
- Field visits for assessment of ground realities in short-listed 4 clusters viz Nabinagar
(Aurangabad), Jhajha (Jamui), Arawal (Arwal) and Hulasganj (Jehanabad) were
carried out in December 2011. During the field visit and analysis of the electrification
status of the villages following observations made (See Table 2.1),
Nabingar Aurangabad, almost all villages & even large tolas electrified
under RGGVY & some small tolas (10-30HHs) left out.
Hulasganj-Jehanabad: only census villages got electrified and large tolas yet
un-electrified (in many cases tolas larger than main village).
Jhajha-Jamui: Mixed situation. Some RGGVY villages are electrified & many
un-electrified and some smaller tolas un-electrified
Arwal-Arawal: All villages covered under RGGVY but yet to get electricity
and some tolas are un-electrified
Finally in December 2011, based on recommendations of Project Coordination Committee,
cluster consisting of 42 habitations (villages/ hamlets both un-electrified and under-
electrified) in Hulasganj block of Jehanabad district was selected for this DPR preparation
for development of planned cluster based rural electrification project in LWE district of
Bihar under Access to Energy Programme of UNDP-MoP.
Page 10
Table 2.1Comparative Analysis of Potential Short-Listed Clusters
Parameters Hulasganj
(Jehanabad)
Nabinagar
(Aurangabad)
Arwal (Arwal) Jhajha (Jamui)
No of villages 48 300 67 172
No of villages not
covered under RGGVY
8 81 14 39
No of hamlets not
covered RGGVY
NA 88 NA 70
Possible cluster of
villages/ hamlets
Under-electrified (<6hrs)
Un-electrified
~39
~14
~25
~39
~36
~3
~40
~20+
~20
~43
~13
~30
Terrain Quite plain with
good agriculture
due to adjoining
canal & river
Quite plain. Good
agriculture due to
low water table
Quite plain, Good
agriculture due to
adjoining canal-
river
Hilly tough
terrain. Forest
area with low
agriculture
Existing electrification
status
RGGVY
infrastructure
active though
under-supply for
3-6hrs. Though
many census
villages got
electricity under
RGGVY many
largetolas still left
out and even in
under-electrified
villages mostly
minimal BPL
connections and
rest dont have
electricity supply
RGGVY
infrastructure
active though
under-supply for
2-4hrs. Most of
villages as well as
big tolas
electricity under
RGGVY and only
small (5-30HHs)
are left out. Some
people have taken
connections in
addition to BPL
connections.
RGGVY
infrastructure is
in-active due to
theft etc and
therefore many
villages covered
under RGGVY are
still un-electrified.
Few tolas left out
and are un-
electrified.
RGGVY
infrastructure is
in-active in many
villages covered
under RGGVY
though very few
get electricity for
few hours.
Observations on cluster
formation
Good
combination
(60:40) of un-
electrified and
under-electrified
(<6hrs supply)
villages under
RGGVY
Less than 10% un-
electrified villages
with rest under-
electrified (2-4hrs
supply) villages
under RGGVY
Though all un-
electrified with
~20 un-electrified-
non-RGGVY
hamlets but other
villages are
covered under
RGGVY though
are still without
electricity so
getting financial
clearance for same
set of villages in
DPR could be
main issue
Though looks
reasonable
combination
(30:70) of under-
electrified and un-
electrified more
than 2/ 3rd of un-
electrified villages
are still without
electricity though
covered under
RGGVY so getting
financial clearance
for same set of
villages in DPR
could be main
issue.
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Parameters Hulasganj
(Jehanabad)
Nabinagar
(Aurangabad)
Arwal (Arwal) Jhajha (Jamui)
Renewable energy
options
Biomass-agro
residue, solar
Biomass-agro
residue, solar
Biomass-agro
residue, micro-
hydro, solar
Biomass-forest
residue, solar
Biomass availability Mainly agro-
residue like rice
husk in
abundance
Mainly agro-
residue like rice
husk in
abundance
Mainly agro-
residue like rice
husk in
abundance
Mainly forest-
residue so might
not be sustainable
Demonstration effect Very High Very High High Low
Private Sector
Participation
Likely Likely Unlikely Unlikely
Over ranking with
remarks
1
Good mix of diff
category of
villages. Good
biomass
availability
2
Large no of under
electrified but few
un-electrified
villages. Good
biomass
availability.
3
All villages
without electricity
and many
covered by
RGGVY. Good
biomass & hydro
4
Hilly terrain, low
agro residue
availability.
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3 SELECTED CLUSTER PROFILE
This section provides the brief description of the selected cluster of contiguous
villages/ hamlets summarizing the demographic details of the cluster consisting of various
un-electrified and under-electrified villages/ hamlets covered within it.
3.1 Hulasganj block
Hulasganj is one of the seven blocks in the Jehanabad district located at south eastern corner
of district sharing border with adjoining districts of Gaya and Nalanda. It consists of nine
panchayats and 48 census villages with block headquarter located at Hulasganj. This region
was earlier part of Ghoshi block before division of Jehanabad district to form new district of
Arwal. As per 2001 census, there were in all 11,239 households with total population of
77,248.
The demographic details of Hulasganj block can be summarized as follows:
Total population of block is 77,248
There are 48 villages in 9 panchayats and has no town
Literacy rate is 55.53%. (Female - 39.97%. & Male 70.15%)
Noof households in Hulasganj is 11,239. All households are rural.
Female to male ratio of Hulasganj 93.06% (compared to 91.93% of Bihar)
Total working population is 53.65% (63.0% men & 43.71% women)
Figure 3.1Map of J ehanbad district and Hulasganj block
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Main working population is 36.58% (51.94% men & 20.24% women)
Marginal working population is 17.07% (11.06% men & 23.47% women)
Total non-working population 46.35% (37.0% men & 56.29% women)
3.2 Selected cluster for rural electrification through RE based DDG plant
Initially five panchayats (out of total nine panchayats in the block) spanning from entrance
of the block after crossing Phalgu river from north-west corner till the block head quarter at
Hulasganj (upper north-west portion of block), had been short-listed for the formation of the
cluster of contiguous villages/ hamlets (mix of un-electrified and under-electrified) for
preparation of DPR of proposed DDG plant (see Figure3.2).
Figure3.2Map of Hulasganj Block, and short-listed cluster in the Block
However, during the field survey, while gathering the information about existing electricity
distribution system, it was observed that the villages in Murgaon Panchayat have been
connected through a different grid distribution line having generally good electricity supply,
whereas rest of the villages in the remaining four panchayats of the selected cluster of
Hulasganj block are connected to the common grid distribution line coming from Hulasganj
substation. Therefore, in the final configuration of selected cluster, villages under Murgaon
Panchayat were excluded from initially short-listed cluster consisting of five panchayats, so
as to have a homogenous cluster that can be coupled to a single substation grid distribution
network later.
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It was also noticed that, a new substation is being constructed at Dhongra Mushari hamlet of
Tesaur village in Chiri Panchayat under RGGVY programme, which is likely to get ready in
near future. This substation is located almost at the middle of the selected cluster and
therefore can later very well be used to connect distribution network of proposed renewable
energy based grid interactive DDG Plant with the local distribution grid.
Thus, the finalized selected cluster now has 42 contiguous habitations (24 villages and 18
hamlets) comprising of both 25 under electrified (where BSEB and/ or RGGVY grid line has
reached but annual average daily power supply is below 6hrs) and 17 un-electrified
habitations from four panchayats namely Bauri, Chiri, Khudaur, Kokarsa, and Murgaon,
have been considered to form the cluster for this DPR for proposed grid interactive
renewable energy based DDG plant. Figure3.3 below, shows the map of the selected cluster
in the Hulasganj block and also gives details of existing power distribution network within
the selected cluster.
Figure3.3Schematic of selected cluster showing villages-hamlets & existing PDN details
The Table3.1 below gives panchayat-wise list of census villages and respective associated
hamlets included in the selected cluster for this DPR reparation.
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Table 3.1Village & Hamlets in the I dentified Cluster
Chiri Panchayat
Kokarsa Panchayat
Census Village Associated Hamlets Census Village Associated Hamlets
Chiri Kokarsa
Dumri Mirjapur
Sarma
Manjhi Tola Sukiyawa
Ratan Bigha Lodipur
Sisara Rustampur Beldaripur
Ginji
Chaiti Pipar
Dhongra
Tesaur Dhongra Mushari Bauri Panchayat
Sarthua
Bulaki Bigha Census Village Associated Hamlets
Kolbhapur Bauri Kisunpur
Sevapuri Gidarpur
Bhattu Bigha Bihta
Dersai Bigha Rupa Bigha
Khudauri Panchayat Dihuri
Census Village Associated Hamlets Adrakhi Bigha
Khudauri Rampur Dadpur
Raghunathpur Harpur
Narma
Emitdpur Kewla
Beripur
Walipur
Moqueempur
Golakpur
The selected cluster falls between longitude 85.1124036E to 85.1702535E and latitude
25.06028N to 25.1688536N spanning over four panchayats (Bauri, Chiri, Khudaur, and
Kokarsa). The total geographical area of villages included in the cluster is about
4,669hectares and the total cluster population is 43,369 (as per census -2011) residing in
6,402 households. The average household income is of about Rs3417/ - per annumwithin
the selected cluster habitations.
3.3 Demographic details of selected cluster
Through extensive literature survey as well as through questionnaire based village/ hamlet
level focus group discussions (FGDs) and sample household surveys, large amount of data-
information such as demographic data, census data, and village profile and biomass
availability has been gathered for villages/ hamlets included in the selected cluster.
Following Table3.2 summarizes the panchayat-wise information-data giving profile of
selected cluster of villages/ hamlets in Hulasganj block of Jehanabad district. Panchayat-
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village/ hamlet wise profile information is summarized in the tabulated form in
AnnexureA.
Table 3.2Demographic Details of Selected Cluster
Parameters\ Panchayat Bauri Chiri Khudauri Kokarsa Cluster
Total
Census Code 3773600 3771900 3773700 3775100
GPS Coordinates 253'56"N
857'8"E
2511'15"N
858'5"E
257'6"N
858'36"E
254'48"N
857'42"E
No Villages
No of Hamlets
Total No of
villages/ hamlets
6
4
10
7
10
17
6
3
9
5
1
6
24
18
42
No of electrified (under-
electrified) habitations
***
6 9 5 5 25
No of un-electrified
habitations
###
4 8 4 1 17
Village Area (ha) 881 1,532 1,099 1,157 4,669
Population-2001 census 7,497 9,744 8,585 10,391 36,217
Poulation-2011 census 9,881 11,551 9,876 12,061 43,369
No of HHs as per survey 1,680 1,697 1,160 1,865 6,402
No of BPL HHs 887 879 610 660 3036
No of Non-BPL HHs 793 818 550 1205 3366
***
villages/hamlets whereBSEB and/or RGGVY grid has reached but annual averagedaily power supply
is below 6hrs
###
hamlets/ villages wheregrid has not reached so far
Main lively hood activities in the cluster are agriculture, service and labour work. The
distance of various villages/ hamlets to the block head quarter Hulasganj ranges from 1-
6km, whereas that to district headquarter Jehanabad ranges from 8-11km. Almost all the
villages have approachablepakkatar road from district head quarter and block head quarter
leading to census villages and good approach roads to its associated hamlets.
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4 CLUSTER ENERGY PLAN
This session summarizes the details of energy plan of selected cluster of village. For evolving
successful energy plan for selected cluster it necessary to first gather information about
present electrification status (access and availability of electricity) and present energy
use/ consumption pattern and prevailing expenditure on meeting electricity/ lighting
requirement. For this purpose extensive field survey of villages/ hamlets as well as selected
sample of its households was undertaken by team of trained experienced field surveyors.
Field survey team was given detailed orientation program and pilot field survey training as
a QAQC (quality assurance and quality control) measure prior to execution of survey.
Through extensive field survey viz focus group discussions at village/ hamlet level as well
as household survey for confirming information gathered through focus group discussions
requisite information-data was collected in order to identify various types of loads and
estimation of energy demand for different categories of load (viz. Residential lighting,
community lighting, various commercial/ productive loads, etc.). Information-data was also
gathered for assessing the potential renewable energy source available locally within the
selected cluster and assessing its availability in order to decide on viable capacity of RE
based DDG plant and sufficiency to meet the local energy demand.
This chapter gives brief summarized details of analysis of gathered information and data
about present energy use pattern, energy demand of the cluster as well as determination of
the required capacity of the proposed grid interactive RE based DDG plant for rural
electrification.
4.1 Present energy use pattern
The selected cluster consists of 42 contiguous villages/ hamlets in four panchayats namely
Bauri, Chiri, Khudaur, and Kokarsa in Hulasganj block of LWE district of Jehanabad in
Bihar. Out of these habitations electricity access is available in 25 habitations (mainly all
census villages except one) but are under electrified (with annual average daily power
supply of less than 6hrs), whereas the remaining 17 habitations (mainly hamlets except two
hamlets, which have not been covered under RGGVY so far) are still un-electrified. Grid
presence is there in these under-electrified habitations (villages/ hamlets) with connections
mainly to BPL families. The electricity has been supplied by the 11kV line from the
substation and then step down by the distribution transformers of suitable capacity of rating
of either 16kVA (under RGGVY scheme), 63kVA and 100kVA. Presently the electricity
supply to the under-electrified census villages in the selected cluster is from Hulasganj
(which is also block head quarter) substation.
Page 18
However, the supply of electricity is quite erratic and insufficient. Some villages get
electricity sometimes even for 10-15hrs, but only for few days in a month and that too
generally single phase so that they cannot operate any electrical appliance for productive
purpose or income generation activity. Overall availability of electricity on annualized basis
is in the range of 3-6 hrs per day. As a result villagers have to depend on kerosene for
lighting (as the power is generally unavailable during evening hours when required) and
sometimes have to buy it from open market in addition to monthly 2.5liter supply through
PDS at subsidized price. However unlike other parts of Bihar use of DG set by private
operator for evening lighting is not prevalent in this cluster. However, few households
(approx 15-20) have installed solar panels with battery charging facility.
Almost every 1 in 3 households have small diesel engine of 5-8HP which is used for
irrigation pumping and also for other motive power agriculture applications such as
thrashing, milling etc. All productive application in villages such as atta chakki, cane
thrasher, fabrication shops, oil expellers of the cluster operate on diesel.
Table 4.1summarizes the information related to present electricity availability and energy
consumption pattern of the cluster.
Table 4.1Electrification Status and Present Energy Usage in Selected Cluster
Parameter\ Panchayat Bauri Chiri Khudauri Kokarsa Cluster Total
No of un-electrified habitations 4 8 4 1 17
No of electrified habitations 6 9 5 5 25
Avg supply - Hr/ day (annualized) 5.42 5.00 5.50 5.10 5.23
Avg supply day/ month (annualized) 17.50 15.38 19.60 18.80 17.50
Avg monthly elect charges in electrified
habitants (Rs/ month)
93 106 95 95 97
Avg kerosene consumption (lit/ month)
(2.5 lit is subsidized through PDS)
4.55 4.76 4.78 5.25 4.79
Avg monthly expenses to supplement
electricity (Rs)
114 120 129 131 122
No of Atta Chakki 13 29 17 23 82
No Irrigation Pump Sets 349 507 417 820 2093
No of Rice Hullers/ mills 5 43 20 0 68
No of Sugarcane thrashers/ oil mills 2 2 2 9 15
Page 19
Avg expenses on diesel usage
(Rs/ HH/ month)
127 117 121 113 120
Avg monthly Income (Rs) 3206 3182 3828 3820 3417
Avg willingness to pay (Rs) 79 88 88 83 85
4.2 Estimation of load and demand
In this section effort has been made to identify various load requirements in the selected
cluster and energy demand against each identified load.
4.2.1 Residential load
Residential load consists mainly of lighting and other appliances like fan/ radio/ TV etc used
using point. It is assumed that, minimal of 2 CFLs (11W/ 18W) and one socket of 70W is
provided for all BPL families (and additional socket point of 50W is provided for APL
families) for using TV/ fan/ etc. From the survey data and information gathered about
households of the villages/ hamlets within selected clusters, and with connected load of
100W and 150W per household for BPL and APL families respectively, the total residential
load works out to be 646.80kW with assumption of reasonable load factor of 80%
(Table4.2).
Table4.2Estimation of Residential Load
No of House Holds 1680 1697 1160 1865 6402
No of BPL Households 887 879 610 660 3036
No of Non-BPL Households 793 818 550 1205 3366
Residential Load (kW)
(with 80% load factor)
166.12 168.48 114.80 197.40 646.80
Note: AverageBPL HH Load =100W (2CFL:11W&18W +1 socket of 70W)
AverageAPL HH Load =150W (2CFL:11W&18W +2 sockets of 50W&70W)
4.2.2 Street light load
Here the number of streetlights required is estimated to be around 7% of the number of
households in the village/ hamlet. Thus, the number of street lights required works out to
463, for the selected cluster having 6402 number of households residing in 42 habitations.
Therefore, with 11W CFL streetlight and 100% load factor the street light connected load
works out to 5.1kW (See Table4.3).
Page 20
Table4.3Estimation of Streetlight Load
No of Households 1680 1697 1160 1865 6402
No of street lights
(@7% of No of households)
121 125 84 133 463
Streetlight Load (kW)(11W CFL) 1.331 1.375 0.924 1.463 5.093
4.2.3 Community building load
For calculating the load of community building such as school, public health centre,
cooperative banks, panchayats bhawan/ community centers etc. The details of community
buildings under different panchayats and estimation of community building load along
with assumptions is summarized below in Table4.4.
Table4.4Estimation of Community Building Load
No of Schools 7 8 6 5 26
No of Health Centers 1 5 6 3 15
No of Panchayat Bhawan/
community centers
1 3 2 2 8
No of banks 0 0 1 1 2
Total No of community building 9 16 15 11 51
Community building load (kW) 9.45 16.8 15.75 11.55 53.55
Note: Connected Load in community building likeHealth Centre/school/ Bank
No of fans: 7 (70W each), No of TubeLights: 14 (40W each)
Power consumption per community building: 1.05kW
4.2.4 Non-residential commercial load
Apart from residential lighting load and community building as well as street lights, the
major load demand observed during the survey is due to large number of diesel engines
presently being used for running numerous productive appliances like atta chakki, huller,
thrasher, oil expeller, cane thrasher, irrigation pumpset etc. Following Table summarizes
number of such potential electrical appliances under different panchayats. Details of
estimating non-residential productive loads are summarized below in the Table 4.5.
Table4.5Estimation of Non-Residential Productive Load
No of Atta Chakki (8HP) 13 29 17 23 82
No of cane crusher/ oil mills (10HP) 2 2 2 9 15
No of small rice hullers/ mills (10HP) 5 43 20 0 68
Total load demand (kW)
(with 50% load factor)
64.90 254.39 132.79 102.20 554.28
No Irrigation Pump Sets (5HP) 349 507 417 820 2093
Connected load of irrigation pumpset (kW)
1301.77 1891.11 1555.41 3058.6 7806.89
Page 21
Thus total non-residential load due to various productive applications, which are presently
being met by diesel engines, works out to 554.28kW with reasonableload factor of 50%.
It can be seen that the irrigation pumpset load, which is quite seasonal for very few number
of days, itself accounts for whooping 7807kW connected load. Therefore irrigation pumpset
load is neglected here and not envisaged to be served by planned RE based grid interactive
DDG plant, since such a large capacity power plant might not be feasible with available
biomass resource within the cluster and might not be attractive for private developers who
might be installing and operating it.
4.2.5 Sizing of RE based grid interactive DDG plant
The total connected load of the selected cluster, excluding seasonal irrigation pumpset load,
works out to be 1260kW (See Table 4.6). With different loads occurring at different time of
the day the anticipated peak demand would be occurring when major residential load
would be occurring during the evening peak hours along with street-lighting and some
other non-residential load. In the night time the small 5.1kW street-lighting load would be
there throughout the night till morning hours. Since street-lighting load is much smaller
compared to other major loads it is envisaged that same can be met through battery storage
system coupled with 11W CFL (as used in standalone SPV streetlight systems), with battery
charging option with battery getting charged during the normal operating hours of the DDG
plant. Also in order to optimize on sizing of RE based DDG plant it is planned to cater
different category load during scheduled time zones. Thus, the residential load has been
considered for 6hrs duration i.e. from 05:00 hours to 07:00 hours in the morning and from
19:00 hours to 23:00 hours in the evening. In winter months both morning and evening
timing can be advanced by 1hr, if required. Remaining commercial and other loads
(panchayats bhawan, hospital, school etc), which can be catered during day time operation
of the plant for 6hours viz 10:00 hours to 16:00 hours. This would give opportunity to
operate proposed RE based DDG power plant in three time slots or shifts i.e. 2hrs in the
morning, 6hrs in the afternoon and 4hours in the evening giving short time gaps available
for daily routine maintenance.
Thus anticipated peak demand is of the order of 646.8kW during evening time when
residential lighting load would be served. With annual load growth of 5% for next five years
the peak demand would go up to 786.2kW. Thus required RE based DDG plant capacity
would be would be 1MW (1.25 times anticipated peak demand after 5yrs). Table 4.6 gives
the details of sizing of proposed RE based DDG power plant.
Page 22
Table 4.6Estimation of Total Cluster Load and DDG Plant Size
Load Category Load (kW)
Residential Load 646.8
Street Lighting Load 5.1
Community Building Load 53.6
Non-Residential Productive Appliances Load 554.3
Anticipated Peak Demand after Load Scheduling 646.8
Considering 5% annual growth rate, expected load 5yrs 786.2
Required DDG Plant Capacity (1.25 x peak load) 982.7
1000
Details of scheduling of different categories of load for optimization of plant size as well as
corresponding load curve are given in Table 4.7 and Figure4.1 respectively.
4.3 Potential renewable energy resource
Potential renewable energy resources considered include
Hydro and wind resources are not considered due to non-availability within cluster
Solar energy (considered here only to meet low streetlight demand throughout the
night and not for meeting rest of the cluster load due to high and huge demand
including productive appliances)
Biomass resource (lot of agro-residue available within the cluster due main
agriculture activity in cluster, which is main livelihood source
Accordingly, biomass (agro-residue) gasifier technology seems to be most appropriate
option for DDG power plant considering locally available renewable resource in the and
possibility of installing modular nature of producer gas gensets to cater different load
demands as per load schedule during different time duration of the day.
Page23
Table 4.7Hourly scheduled load curve for sizing of RE based DDG power plant
Total Hourly Load Curvewithout Irrigation Load
kWh
Hourly
Load Curve 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
3880.8
Residential
Load
646.8 646.8 646.8 646.8 646.8 646.8
61.08
Street
Light**
5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09
163.8 School 27.3 27.3 27.3 27.3 27.3 27.3
94.5 Hospital 15.75 15.75 15.75 15.75 15.75 15.75
50.4
Panchayat
Bhawan
8.4 8.4 8.4 8.4 8.4 8.4
12.6
Cooperative
Bank
2.100 2.100 2.100 2.100 2.100 2.100
3325.7
Non
Residential
Load
(Commercial
Load)
554.278 554.278 554.278 554.278 554.278 554.278
7588.88 Total Load 0.0 0.0 0.0 0.0 0.0 646.8 646.8 0.0 0.0 0.0 607.8 607.8 607.8 607.8 607.8 607.8 0.0 0.0 646.8 646.8 646.8 646.8 0.0 0.0
** Streetlights load would beserved by battery charging option with battery getting charged during thenormal operating hours of theDDG plant. Alternatively, street
lighting can beprovided with standaloneSPV streetlight systems..
Page24
Figure 4.1Hourly load scheduling pattern in thecluster
Page 25
4.4 Assessment of Biomass Availability
As mentioned earlier, biomass gasifier technology was deemed as a best possible
alternative for this cluster having a forest cover of around 221 ha(as per Census 2001).
A part of this land may have been encroached upon by the villagers for agricultural
purposes. For assessment of biomass availability for planned RE based DDG power
plant wood biomass from forest and waste land is not considered in order to avoid
possible further deforestation in future. Therefore assessment of biomass availability
for estimating potential power generation from this renewable energy resource has
been done based on agro-residue alone, which has been noticed to be available in
abundance during field survey.
The quantity estimation of the biomass (agro-residue) in the cluster has been done on
the basis of the cultivated land in the cluster used for the seasonal crop production.
Once the size of cultivated land is known in the cluster, the total crop production can
be calculated by the multiplying the average productivity of the land of the cluster.
This exercise gives the total quantity of crop produced in the cluster, the total biomass
which will be produced by the crop, can be estimated by the multiplying the quantity
of crop produce to the residue production ratio for the crop. The quantity estimated by
this calculation gives the total quantity of residue produced, in the cluster. If, quantity
of biomass produced in the selected cluster is more than the quantity required to fuel
the biomass gasifier plant then the cluster is suitable to set up the plant, from fuel
security point of view.
The analysis of the availability of biomass has been done on the basis of the data
collected by the village/ hamlet survey for cultivated area under different crops as well
as secondary data for agriculture yield, crop-residue ration etc. Since as per the survey,
the total land available in the cluster is around 5031 ha, and for the production of
seasonal crop the total cultivated land is around 7500 ha (considering the yearly two
seasonal crop, so, the total irrigated land in the cluster works out to around 3500 ha).
While, as per the Census 2001, the area of village 4670 ha, and total irrigated land is
around 3330 Ha. The difference between the areas of cultivated land (as per survey
3750 Ha and as per census around 3500) provided by the survey and census is only,
250 Ha, which nearly 7%, the difference is not much. This difference can be attributed
to partly encroachment on government/ wasteland. Since census 2001 data, which is
around 10 year old, therefore the primary survey data collected has been considered
for the estimation of the availability of agro-residue. The estimation of biomass
Page 26
availability by the cultivation of different crops in the cluster has been summarized
below in Table 4.8, whereas Table 4.9 estimates the power generation potential.
The total power generation potential by the locally available biomass works out to
around 4MW. Taking conservative practical approach, considering the agro-residue
only from the rice crop (within cluster alone) in the form of rice husk, which relatively
has less demand in the region in absence of thermal process heat needing small scale
industry, the power generation potential has been estimated here. In case of any
shortage of biomass within the cluster, additional biomass required can be procured
easily from other residues and from adjoining areas within 10km radius where rice
cultivation and husk availability is quite sufficient.
It can be observed from the Table 4.9 that for 12hr planned operation of the power
plant, the rice husk available within the cluster itself can support 2.5MW, 2MW,
1.5MW and 1MW power plant with 100%, 80%, 60% and 40% agro residue (rice husk
alone) availability as renewable energy resource. Thus planned 1MW power plant can
be easily supported by rice husk produced alone even if 40% of husk produced within
the cluster becomes available for the plant operation.
Table 4.8Assessment of RE resource (Biomass) Availability within Selected Cluster
Biomass Available for Electricity Production (in Tonne)
Crop\ Panchayat Chiri Bauri Khudauri Kokarsa Total
Rice 7901 3600 6656 3906 22062
Wheat 2850 1408 2902 1804 8964
Oil Seed 143 116 83 2 343
Sugarcane 1000 500 800 208 2507
Total Biomass (agro-residue) Production (in Tonne) 33,877
Cultivated Land in Cluster for Different Crop (in Bigha)
Crop\ Panchayat Chiri Bauri Khudauri Kokarsa Total
Rice 5300 2415 4465 2620 14800
Wheat 4140 2045 4215 2620 13020
Oil Seed 326 265 190 5 786
Sugarcane 240 120 192 50 602
Other Crop (Arhar) 15 60 300 5 380
Total Land (in Bigha) 29,588
Total Land (in Hectares) 7657
Page 27
Table 4.9Potential Capacity for Power Generation
Agro-residue
Agro-Residue
(TPA)
Calorific Value
(kcal/kg)
SFC
(kg/kWh)
Electricity Generation Potential (MW)
(for 12 hr daily operation)
(for percent availability for power)
100% 80% 60% 40%
Rice 22062 3000 2 2.52 2.01 1.51 1.01
Wheat 8964 3800 1.8 1.14 0.91 0.68 0.45
Oilseed 343 3800 1.8 0.04 0.03 0.03 0.02
Sugarcane 2507 3800 1.8 0.32 0.25 0.19 0.13
Total 33,877 4.02 3.21 2.41 1.61
Table4.10 shows that the available biomass in the form of agro residue (mainly rice
husk) is quite sufficient to meet the electricity energy demand (in MWh) of the cluster.
Table 4.10Resource (Biomass) Feasibility Check
Parameter Data
Daily Electricity Demand in kWh
(From Load Curve Table)
7,588.88
Requirement of Annual Electricity Generation- to
Supply Cluster Load (in kWh/ yr)
2,7699,941
Biomass requirement (@2kg/ kWh) (in TPA)
5,540
Rice husk production within cluster (TPA) 22,062
Since, Available Agro-Residue in Cluster is Far More Than
the Requirementso, Operationof Biomass Plant of Proposed Capacity Feasible
Even under the case of potential extended operation of pr proposed power for 16
hours per day to have benefit due to economies of scale of power generation, the
annual electricity generation would work out to to 52,56,000 units on full load i.e. with
the consideration of 100% PLF. Thi will require the biomass of the order of 10,512 TPA
(@2kg/ kWh) availability of which would be still sufficient, as the estimated rice husk
production within the cluster is 22,062 TPA, as can be seen from Table4.10.
Page 28
5 RE BASED GRID INTERACTIVE DDG PLANT
This section gives details of proposed RE based grid interactive DDG plant for
electrification of selected cluster of 42 habitations in Hulasganj block of Jehanabad
district. As mentioned earlier the biomass gasification based grid interactive power
plant of 1MW size is proposed here for catering various categories of loads within the
cluster both residential and non-residential (community buildings/ establishments,
productive appliances/ commercial enterprises etc). However, in order to optimize on
sizing and thereby on capital investment and operation of huge capacity power plant
for small streetlight load throughout the night, it is decided to cater this load by stand
alone SPV based streetlight systems. Alternatively street lighting load also can be met
through battery storage system for night operation when power plant would not be
working and battery can be kept charged during day time operation of the power
plant; as streetlight load is very small.
5.1 Biomass Gasification Technology
Biomass gasification is a process of converting solid biomass fuel into gaseous
combustible gas (called producer gas) through a sequence of complex thermo-
chemical reactions. In the first stage partial combustion of biomass to produce gas and
char occurs along with generation of heat. This heat is utilized in drying of biomass to
evaporate its moisture as well as for pyrolysis reactions to bring out volatile matter
and provide heat energy necessary for further endothermic reduction reactions to
produce producer gas which mainly consists of mixture of combustible gases such as
CO (carbon monoxide), hydrogen (H2) and traces of methane (CH4) and other
hydrocarbon.
Normally air is used as gasifying agent; however use of oxygen can produce rich
higher calorific value gas but due to cost implications is not usually preferred. Typical
volumetric composition of producer gas is as follows.
Carbon monoxide : 18%20%
Hydrogen : 15%20%
Methane : 1%5%
Carbon dioxide : 9%12%
Nitrogen : 45%55%
Calorific value : 10001200 kcal/ Nm3
Page 29
The clean producer gas obtained through gasification of biomass in gasifier can be
used for electrical power generation, either through dual-fuel IC engines (where diesel
oil is replaced to an extent of 60%80%), or through 100% gas-fired spark ignition
engines. Typically 1kg of air dried biomass produces about 2-2.5 Nm3 of combustible
producer gas. Approximately 1.5 to 1.8 kg biomass is required to produce 1kWh of
electricity.
What can be gasified:
Most commonly available gasifiers use wood/ woody biomass; some can use rice husk
as well. Many other non-woody biomass materials can also be gasified. These include
mustard stalks, and residual stalks of various agricultural crops like corn, flower
stems, cashew nut shells, lantana, coconut shells, and briquettes of residues like
sawdust, coir pith, groundnut shells, rice husk, etc. Although gasifiers have to be
specially designed to suit these materials and the biomass may have to be compacted
in many cases. Therefore briquetted biomass (with bulk density more than 400-600
kg/ m3) can be used to enhance multi-fuel capability of gasifier.
A biomass gasifier based 100% producer gas (modified diesel) engine power
generation system normally consists of:
A biomass gasifier that converts biomass into combustible producer gas
A gas cooling-cleaning train that cleans and cools the gas so that it can be safely
used in engine, and
A gas (modified diesel) engine generator system capable of operating on 100%
producer gas mode.
Gasifier types:
Gasifiers can be of updraft or downdraft types, the latter is preferred for power
generation as it gives relatively clean gas (low tar). In a typical downdraft gasifier, fuel
and air move in a co-current manner. In updraft gasifiers, on the other hand, fuel and
air move in counter-current manner. However, the basic reaction zones remain the
same. Fuel is loaded into the reactor from the top. As the fuel moves down, it is
subjected to drying and pyrolysis. Air is injected into the reactor in the oxidation zone,
and through the partial combustion of pyrolysis products and solid biomass, the
temperature rises to 1100C. This helps in breaking down heavier hydrocarbons and
tars. As these products move downwards, they enter the reduction zone where
producer gas is formed by the action of carbon dioxide and water vapour on red-hot
charcoal. The hot and dirty gas is passed through a system of coolers, cleaners, and
Page 30
filters before it is sent to engines. A schematic diagram for the operation of biomass
gasifier is shown below:
Figure 5.1Schematic Diagram for Biogasifier
Majority of commonly available gasifiers use wood/ woody biomass as fuel, while
some can use rice husk also. Many other non-woody biomass materials can also be
gasified, although gasifiers have to be specially designed to suit these materials
and/ or available biomass can be pre-processed through chopping, pulverising and
compaction (briquetting) to convert them into more uniform size and shape.
Producer gas engines
For power generation, producer gas can be used in IC (internal combustion) engine.
Existing petrol (Otto Cycle) or spark ignition (CI) engines can be used but normally
they operate on lower compression ratio (and hence with lower efficiencies) and also
results in large derating when operated on low heating value producer gas. Therefore,
normally diesel engines are preferred for the use of gas in engine operation as they
normally operate with a higher compression ratio and excess air levels resulting in
reduced derating. Existing diesel engines can easily be operated on dual fuel (diesel +
gas) mode (70-80% gas and 20-30% diesel). The development of a modified diesel
engine capable of operating on 100% producer gas has been initiated at several
research institutes. The engine modification basically involves:
Modifying piston and/ or cylinder head to reduce the compression ratio
Replacing diesel injectors with spark plugs
Page 31
Using a diesel pump governing mechanism for spark distribution
Adjusting the spark ignition timing
Several engine manufacturers are now supplying engines for 100% producer gas
operation by either modifying diesel engine or using natural gas engines.
5.2 Site Requirement
While the power plant site area will be decided after getting clearance, about 1-
2 acres of land could be allocated to the Biomass Power Plant so as to house the
Power Plant in less than 2000 square meters and the balance area could be used
for the storage (keeping stock for few days) and handling of biomass. Some
areas within the power plant could also be left open for development of green
belt as that may be desired. The site could ideally be selected as close to the
households for electrification.
5.3 Requirement of Biomass
The primary fuels/ biomass intended to be used is Fine Biomass like Rice Husk. Thus
availability of Rice Husk on a sustainable basis does not seem to be a problem. Rice
Husk planned to be used as biomass on as is basis without the need of briquetting but
with moisture content less than 10% before feeding and devoid of any foreign
contamination like dust, dirt, stone, chips or any other. The indicative consumption of
Rice Husk would be about 1.8 0.2 kgs / kWhr.
Sufficient storage facility needs to be created at the power plant location or any other
place nearby for smooth operations. This is specially required in the view of seasonal
availability of the agro-residue (biomass resource) during harvesting season. Storage
area in the project site would have to be decided depending on the agreements with
the potential biomass (rice husk) suppliers such as hullers, rice mills, etc and
accordingly sufficient area would need to be allocated for storage of the sufficient
stock of rice husk to take benefit of their low prices during harvesting season.
Approximate indicative area required for storage of rice husk considering its low bulk
density of the order of 100-150kg/ m
3
is given below in Table5.1.
Page 32
Table 5.1Space requirement for Biomass Storage
No of days for Rice
Husk Storage
Approx. Tons of
Rice Husk
Indicative area required for storage
Length Width Height
10 500 35 35 3
15 735 50 35 3
30 1470 70 50 3
45 2200 75 70 3
60 3000 90 80 3
5.4 Proposed DDG plant site
It has been noticed that at Dhongra Mushari Hamlet of Teasur village in Chiri
Panchayat, one new substation is being constructed. This is incidentally located almost
in the middle of the selected cluster. During the focus group discussions with the
villagers a plot (suitable for proposed RE based DDG power plant) was identified. The
said plot is a government wasteland and can be easily made available by the
Government for any useful purpose for the development of the region. The details of
the identified plot are as follows:
Table 5.2Details of the Land Available for the DDG Plant in the Cluster
Name of Village Hamlet Dhongra Mushari
Name of Census Village Tesaur (Census Code 3774400)
Name of Panchyat Chiri (Census Code 3771900)
Plot No 2640/ 2650
Khata No 335
Plot Area 24.87 acres
Type of Land Government Wasteland
It was informed locally that, the identified proposed DDG plant site land is
owned by the government and it is having enough area for setting up the
renewable energy based DDG plant.
5.5 Specifications for biomass gasifier based DDG plant
The following are suggestive specifications of proposed 1 MW capacity biomass
gasifier based power plant.
Table 5.3Specifications and performance parameter of gasifier based power plant
Biomass Gasifier
Gas gasifier type Downdraft
Rated gas flow (Nm3/ hr) 1912.5
Rated thermal output (Kcal/ hr) 2,008,125
Fuel consumption (kg/ hr) 765-1020
Page 33
Fuel:
Woody
Loose biomass
Dia-10mm, length-75mm
Dia-3mm, length-20mm
Typical gas composition CO: 19+/ -3%
H2: 18+/ 2%
N2: 50%
CO2: 8+/ 2%
CH4: upto 3%
Producer gas engines
Engine make and model Cummins GTA 1710G (4 Nos)
or equivalent
Generator make and model Stamford HC 4E (380KVA) (4 Nos)
or equivalent
RPM 1500
No of cylinders 12
Total displacement (lit) 28
Engine power (kW) 250
Engine Performance Data
Percent load 100% 75% 50%
Thermal energy input (kW) 850 685 510
Wood gas consumption (Nm3/ hr) 731 589 439
Electrical capacity (kW) 250 187.5 125
5.6 Estimated project cost
This section gives the estimated project cost for proposed RE based grid interactive
power plant for electrification of selected cluster. The total project cost can be
categorized in following three major components.
- Biomass gasifier based power plant
- Power Distribution Network (PDN) augmentation, and
Table5.4 gives the detailed break-up of indicative project cost of a typical 1MW
capacity biomass gasifier based power plant, which works out to about Rs60,000
per kW.
Page 34
Table 5.4Project cost of typical 1MW gasifier based power plant
Item Description Basic Price in (Rs)
Biomass pre-processing and conveying system 1,570,000
Gasifier & Related Accessories (set of 2 Nos)
Gasifier, Gas cleaning-cooling systems, Cooling towers, chillers,
etc with PLC based control pannels
22,835,000
Producer gas (100%) engine (set of 4 Nos) 23,000,000
Cooling towers for gas engines 1,025,000
Building cost for housing power plant 6,000,000
Sub-total capital cost 54,430,000
Capital Cost (including 2% CST against FormC) 55,518,600
Installation-commissioning of engines 800,000
Gasifier-engines integration 1,150,000
Freight and insurance cost (approx) 2,000,000
Sub-total installation-commissioning cost 39,50,000
Sub-total installation-commissioning including 12.36% service tax 4,438,220
Total Power plant cost 59,956,820
60,000,000
Page35
5.7 Schematic and layout of proposed DDG plant
The schematic diagram of proposed biomass Gasifier Power Plant (Indicative) is given below
Figure 5.2Schematic Diagram proposed biomass Gasifier Power Plant
Page36
Indicative Layout of proposed Biomass Gasifier based DDG Power Plant is as follows:
Figure 5.3Schematic Diagram proposed biomass Gasifier Power Plant
Page 37
5.8 Streetlight System
Since the street light load is relatively very small and need to be served throughout the
night time, it is planned to be provided by using battery storage system coupled to
11W CFL lamp (as used in SPV streetlight module) for streetlight. These batteries can
be kept charged during the day time using power plant operation. This would avoid
RE based large MW level power plant operation at very low PLF and help scheduling
its operation for three short duration batches of 2hr in morning for residential lighting,
6 hrs in day time for commercial and other loads and 4hrs in evening for residential
load respectively; giving opportunity to operate proposed RE based DDG power plant
in three time slots or shifts giving short time gaps available for daily routine
maintenance.
Details of number of street lights required for the selected cluster works out to 463
(@7% number of households in each habitation viz village/ hamlet) as shown in
Table4.3.
Alternatively if possible and feasible in prevailing scheme, a standalone SPV
streetlight system of following specifications can also be used.
- SPV module 75Wp capacity
- Battery: 12V, 75Ah rating
- Streetlight: 11W CFL or later LED lamp if becomes cheap in near future.
With prevailing price of 12-14 thousand rupees, for standalone SPV streetlight of 11W
capacity, the total cost for standalone SPV Street-lighting System works out to the tune
of Rs 60Lacs towards SPV panel, battery and CFL bulb.
Though nowadays LED based lighting systems are becoming popular even at slightly
(about 1-3 thousand rupees) cheaper than CFL bulb (due to lower panel size
requirement), presently 11W CFL based streetlights are proposed here considering
cheaper replacement of bulbs in rural areas. However, in future if LED bulb becomes
more cost effective same can be used as they can result in longer back up duration.
Page 38
6 POWER DISTRIBUTION NETWORK (PDN)
As mentioned earlier the cluster consists of 24 villages (42 contiguous habitation) in
Hulasganj block, comprising both un-electrified (where grid has not reached yet) as
well as under-electrified (where though the grid has reached but the daily power
supply is less than 6hrs on annualized basis) villages/ hamlets. This section gives
detailed account of assessment carried out for the requirement of planned PDN for
rural electrification of selected cluster using proposed RE (biomass gasifier) based grid
interactive power plant.
As a first step based on the load demand estimation carried out in earlier section,
village/ hamlet wise assessment of transformer capacity and the PDN length is worked
out. Efforts are made to gather as much details of existing PDN (no of DT of different
capacity and length of LT line existing) within the cluster as possible through
consultation with concerned officials in the block and lineman as well from RGGVY
database. Based on the analysis of gathered information an assessment is made with
regard to augmentation need of existing grid in under-electrified villages/ hamlets as
well as extension of the grid in un-electrified villages/ hamlets of the cluster.
The 42 habitations (villages/ hamlets) included in the selected cluster consists of 24
census and 18 associated hamlets falling under four Panchayats (namely Bauri, Chiri,
Khudaur and Kokarsa) of Hulasganj block of LWE district of Jehanabad in Bihar. The
power supply is mainly from 33kV/ 11kV substation located at block head quarter of
Hulasganj. The substation has two transformers each of 3.15MVA capacity and the
outgoing 11kV feeders from the substation supply the power to the (under)electrified
villages/ hamlets of the cluster. Though main categories of the loads in the cluster
include agriculture, residential and commercial, the existing PDN is able to cater only
residential load for very few hours that too generally when not needed. As a result
villagers are required to use alternate options to meet their electricity needs viz
kerosene for lighting, diesel to energize agriculture pumpsets and other productive
appliances like aatta chakki, mill, huller, thrasher etc. As mentioned earlier, the power
requirements for the seasonal agriculture pumpset would result in huge connected
load to RE based power plant it has not been envisaged to be covered under the
proposed biomass gasifier based power plant in the cluster.
Page 39
6.1 Distribution Transformers (DTs) requirement
At present 25habitations of the cluster are having the electricity and 17habitations are
still un-electrified. The total install capacity of Distribution Transformers (DTs) in the
cluster is around 1,788kVA, which includes 1,196kVA capacity installed by the BSEB
and 592kVA capacity installed under the RGGVY. As per the load demand estimation
for the cluster the total connected load on the network for the different categories is
around 3.2MW, which works out to 2MW, after considering reasonable load factor
for different load categories as described in earlier section. The anticipated peak
demand comes to 646.8kW with load scheduling of different categories of load to be
catered with 12hr operation of proposed RE based power plant.
The assessment of village-wise requirement of DT capacity considering 5% growth for
next 5yrs is made and finding are summarized in Table6.1 below, while
Table6.2gives detailed village/ hamlet wise requirement of DT capacity. Thus, it can
be seen that in addition to need for installing DTs in un-electrified habitations, there is
need to add/ augment DT capacity in existing under-electrified habitations also in
order to meet power demand.
Table 6.1Panchayat wise estimated DT capacity requirement (kVA)
Parameters Chiri Buari Khudauri Kokarsa
Cluster
Total
No of habitations connected to grid
(electrified / under-electrified)
9 6 5 5
25
No of un-electrified habitation to be
covered
8 4 4 1 17
Installed DT capacity of existing grid
in the cluster
275 116 426 379
1196
Installed DT capacity under RGGVY in
the cluster
208 144 112 128
592
Total Installed Capacity of DTs 483 260 538 507
1788
Capacity of Required DTs after 5 Years
(Taking Power Factor 0.8)
668 365 400 473
1906
Rating of Proposed Transformer
(The Next Standard Rating of the
Transformer)
388 272 242 125
1027
It can be observed that, considering the annual load growth rate of 5%, the distribution
transformer capacity requirements for the cluster works out to 1,906kVA. With the
existing DT capacity of around 1.8MVA, the requirement of additional DTs needs to
Page 40
be installed works out to around 0.8MVA. Since, DTs are manufactured with standard
sizes/ ratings, so the DT of rating next to the estimated size is considered. The total
capacity of DTs needsto be installed works out to around 1.0MVA. It is estimated that
25DTs of different capacities need to be installed in the different villages/ hamlets in
order to meet the power requirement of the cluster as summarized in Table 6.2.
Table 6.2 Capacity wise Requirement of DTs
Size of Distribution
Transformer
No of DTs Required in the
Cluster
10 kVA 6
16 kVA 4
25 kVA 5
63 kVA 6
100 kVA 4
Total No of DTs Required 25
6.2 Distribution Line Requirement
As per thedata collected under the RGGVY for the 22villages by the field survey and
website, the total length of completed three phase 11kV line is around 16.82km and
the length of 400V single phase LT line is around 8.04km. In addition to this, 8.58km
Arial Bunched Cable (ABC) of 400V for the single and 0.32km three phase line has
also been installed under RGGVY in the villages. Under the RGGVY it has been
proposed to erect total of 42km of 11kV line and 21km of 400V LT line for the 22
villages covered in the cluster.
Table 6.3 represents the installed and required capacity of DTs in the habitations of the
cluster. 17 habitations are having suitable capacity of DTs and 17 habitations are un-
electrified, while the DT capacity of the remaining 8 habitations needs to be
augmented to meet the future power demand.
The existing network of the 11kV line in the cluster, is supplying the power from the
33kV/ 11kV Hulasganj substation to the village/ hamlet Distribution Transformer. The
existing Power Distribution Network (based on the data available) of the four
panchayats covered in the cluster is schematically presented below in Figure6.1,
which shows the village/ habitation wise required and installed capacity of
Distribution Transformers, on the basis of the estimated load demand based on field
survey data.
Page41
able 6.3 Requirement of Distribution Transformer Capacity
Sr
No
Panchayat Village Habitation
Capacity of
Required DT
after 5 Years
(Taking Power
Factor 0.8)
Total Installed
Capacity
(Including
RGGVY)
Capacity of
DT need to
be Added
Rating of Proposed
Transformer
(The Next Standard
Rating of the
Transformer)
1
Chiri
Chiri Chiri 97 116 -19 0
2 Dumri Dumri 108 48 60 63
3
Sarma
Sarma 63 48 15 16
4 Manjhi Tola 5 0 5 10
5 Ratan Bigha 1 0 1 10
6 Sisara Sisara 132 32 100 100
7
Ginnji
Chaiti Pipar 20 0 20 25
8 Ginnji 33 48 -15 0
9 Dhongra 36 63 -27 0
10
Teasaur
Teasaur 33 64 -31 0
11
Dhongra
Mushari 20
16
4
10
12
Sarthua
Sarthua 15 48 -33 0
13 Sevapuri 17 0 17 25
14 Bhatu Bigha 23 0 23 25
15 Bulaki Bigha 22 0 22 25
16 Desai Bigha 15 0 15 16
17 Kolbhapur 27 0 27 63
18
Bauri
Bauri
Bauri 126 48 78 100
19 Gidarpur 35 0 35 63
20 Kisunpur 12 0 12 16
21 Rupa Bigha 44 0 44 63
22
Dadpur
Dadpur 47 116 -69 0
23 Adhikari Bigha 9 0 9 10
Page42
Sr
No
Panchayat Village Habitation
Capacity of
Required DT
after 5 Years
(Taking Power
Factor 0.8)
Total Installed
Capacity
(Including
RGGVY)
Capacity of
DT need to
be Added
Rating of Proposed
Transformer
(The Next Standard
Rating of the
Transformer)
24 Harpur Harpur 6 16 -10 0
25 Bihta Bihta 24 32 -8 0
26 Dihuri Dihuri 42 32 10 10
27 Kewla Kewla 19 16 3 10
28
Khudauri
Khudauri
Khudauri 51 132 -81 0
29 Rampur 65 0 65 100
30 Raghunathpur Raghunathpur 34 100 -66 0
31
Narma
Narma 77 132 -55 0
32 Emitpur 35 95 -60 0
33 Benipur 16 0 16 16
34 Mokimpur Mokimpur 58 79 -21 0
35 Walipur Walipur 34 0 34 63
36 Golakpur Golakpur 29 0 29 63
37
Kokarsa
Kokarsa 244 148 96 100
38 Mirzapur 63 116 -53 0
39 Sukiyawan 36 116 -80 0
40 Lodipur 22 32 -10 0
41 Rustampur 86 95 -9 0
42 Beldaripur 21 0 21 25
Page43
Figure 6.1 : Configuration of Distribution Transformers
33 / 11 kV Hulasganj Substation 33 kV Incoming from Hulasganj Substation
2 X 3.15 MVA ( 33 kV / 11 kV)

11 kV Outgoingto Panchayats / Villages / Hamlets

Chiri
0kVA
Ginji
0kVA
Manjhi Tola
10 kVA
RatanBigha
10kVA
Tesaur
0kVA
Sarthua
0kVA
Sevapuri
25kVA
Dhongra
Mushri
10kVA
Bhatu
Bigha
25kVA
Kolabhpur
63kVA
Bauri
100kVA
Gidarpur
63kVA
Kishanpur
16kVA
Adhikari
Bigha
16kVA
Mokimpur
25kVA
Mirzapur
0kVA
Emitpur
0kVA
Benipur
16kVA
Beldaripur
25kVA
Harpur
0kVA
Raghunathpur
0kVA
Bihta
10kVA
Sarma
16kVA
Sisara
100kVA
Dihuri
10kVA
Kokarsa
100kVA
Bulaki
Bigha
25kVA
Desarai
Bigha
16kVA
Rampur
100kVA
Walipur
63kVA
Golakpur
63kVA
Rustampur
25kVA
Lodipur
0kVA
Chaiti Pipar
25kVA
Narma
0kVA
Dhongra
0kVA
No Changeis Required
RequiredNew DT Installation
Required Capacity
Augmentation
RequiredCapacity Augmentation
Dumri
63kVA
Dadpur
0kVA
Sukiyawan
0kVA
Khudauri
0kVA
Rupa
Bigha
63kVA
Kewla
10kVA
Page 44
6.3 PDN Cost Estimation
This section gives detail cost estimation of Power Distribution Network (PDN) for the
installation of new network for the un electrified 17 habitations and strengthening of
the existingPDN of under electrified 8 habitations. The major cost components of PDN
include the cost of Distribution Transformers (DTs), cost of 11kV and 400V LT line.
6.3.1 Cost Estimate of Distribution Transformers
Distribution Transformer is a vital link in supplying the power at 400V, in power
distribution network. Depending upon the power requirement of the area, size of
Distribution Transformer is decided. It is very much necessary to decide the capacity
of Distribution Transformer of sufficient capacity, to cater the increasing load. Based
on assessment of load demand based on field survey the necessary size of the DTs has
been calculated for all the 42 habitations. During the field visit, information gathered
about existing PDN. In DT sizing calculation, it is found that 17habitations are having
sufficient installed capacity of DTs, while DTs of 8 habitations required capacity
augmentation to cater the village/ hamlets growing load and for remaining 17 un-
electrified villages/ hamlets installation of new DTs is required. The total capacity
requirement of DTs in the cluster works out to around 1.0MVA, which will cost
around Rs58.24Lacs. Table6.4provides the details of the required DTs,
Table 6.4Cost estimation of capacity addition of DTs required in the cluster
Size of Distribution
Transformer
Total Requirement
in Cluster
Capacity
of DTs
Unit Cost of DT
(with Installation Cost)
Total Cost
of DT (Rs)
10 kVA
(Cu Winding)
6 60 1,80,000 10,80,000
16 kVA
(Cu Winding)
4 64 2,00,000 8,00,000
25 kVA
(Cu Winding)
5 125 2,25,000 11,25,000
63 kVA
(Al Winding)
6 378 2,75,000 16,50,000
100 kVA
(Al Winding)
4 400 3,20,000 12,80,000
Total No of
DTs required
25 1027
Total Cost
of required DTs
59,35,000
Page 45
6.3.2 Cost of Distribution Lines
11 kV Line
The power shall be distributed from the substation to the villages/ hamlets by 11kV
linein the indentified cluster. At present, the power supply in the villages/ hamlets in
the cluster is from the 33kV/ 11kV Hulasganj substation. In order to meet the growing
power demand of the cluster an additional 33kV/ 11kV substation is proposed for
construction at Dhongra village. This new upcoming substation will feed the clusters
power demand by two power transformer of capacity 5MVA. It is assumed that, to
cater the growing power demand of the cluster, approximately 30km long new
network of 11kV line will be sufficient. With per km cost of 11 kV linenetwork in the
cluster is estimated at Rs7,35,000 per km, with Raccoon Conductor with all the
accessories (e. g. pole, insulators, foundation etc), the approximate cost for the 11kV
network in the cluster works to around Rs220.50Lacs.
Table 6.4 Cost Estimation of 11 kV Line in Cluster
Particulars
Total Line
Requirement
(in km)
Unit
Cost
Cost
(in Lacs)
11 kV Line
(11kV line on 152 X 152 mm, 37.1 kg/ Mtr. 11 Mtr
Long H-Beam with Raccoon conductor average
span of 70 mtr)
30 7,35,000 220.50
Cost of 400 V Line
In order to supply the power in the un-electrified and under-electrified
village/ hamlets of the cluster, it will be required to installed new network or upgrade
the existing distribution network of 400V to feed thegrowing power requirement. 400
V Arial Bunched Cable or Line can be considered for Power Distribution.
- 400 V Overhead Arial Bunched Cable (ABC Cable)
- 400 V Overhead Rabbit and Weasel Conductor Line
ABC Line is being preferred more nowadays, as it minimises the possibility of the
electricity theft, but it costs significantly high as compared to the Line. It is envisaged
that, 400V distribution network of around 3 km, shall be sufficient for power
distribution in the Village/ Hamlet. As mentioned earlier 17 villages/ hamlets are
having sufficient DT capacity, so it is assumed that, these villages shall have sufficient
Page 46
capacity of power distribution network in the villageand additional 400 V distribution
network shall not be required. Out of remaining 25 villages/ hamlets, 17 need to be
electrified afresh and 8 need to be upgraded. Following Table6.5 gives the indicative
cost estimationof 400V Distribution Network using both Cableand Line options.
Table6.5Cost Estimation of 400V PDN Line in Cluster
Particulars
Assumed Length of
Line & Cable for One
Village/Hamlet
(in km)
Unit
Requirement
in Cluster
Overall
Capacity
Required
Per
km
Cost
Total
Cost
(in
Lacs)
Cost of PDN with 400 V Cable
Cost of 400 V Cable to be
erected in un-electrified
villages
3 17 51 650000 331.5
Cost of up gradation of
400 V line to cable (in
under-electrified villages)
3 8 24 340000 81.6
Total Cost of PDN with 400 V Cable 413.1
Cost of PDN with 400 V Line
Cost of 400 V line to be
erected in un-electrified
villages
3 17 51 185000 94.4
Cost of up-gradation of
400 V line network (in
under-electrified villages)
3 8 24 120000 28.8
Total Cost of PDN with 400 V Line 123.2
Total Cost of Distribution Network
The total cost of the PDN infrastructure consists the following costs
1. Cost of Distribution Transformers
2. Cost of 11 kV Network
3. Cost of 400 V Network
4. Cost of Grid Connectivity of DDG Plant
The cost of grid connectivity has been considered, the cost of Generator Transformer,
Construction of Substation at power plant, Cost of Transmission Line, Metering and
protection equipment etc. The total PDN cost estimate has be summarized below in
Table6.6.
Table 6.6Cost Estimate of Total PDN I nfrastructure of Cluster (in Lacs)
Particulars
Amount (Rs Lacs)
400V Line 400V Line
Cost of Distribution Transformer 59.35 59.35
Cost of 11 kV Network 220.5 220.5
Cost of 400V Network 413.1 123.2
Cost of Grid Connectivity of DDG Plant 80 80.0
Total Cost 773.0 483.0
Page 47
7 FINANCIAL ANALYSIS OF PROPOSED RE BASED DDG
POWER PLANT
This chapter presents the detailed financial analysis of the proposed RE based DDG
Plant to arrive at cost of electricity generation. This would help in assessing the
financial feasibility of the project and if not feasible, would help in estimating the
viability gap under different project scenarios. The sensitivity analysis has also been
carried out to assess the impact of selected critical parameters like biomass fuel price,
consumer category mix, etc. under different capital subsidy options.
7.1 Cost of Electricity Generation
This section presents the details of financial analysis carried out for proposed 1MW
biomass gasifier based grid interactive power plant for electrification of the selected
cluster. In order to determine the cost of electricity generation, the capital cost of
proposed gasifier based power plant alone has been considered. The cost of Power
Distribution Network (PDN) or augmentation of existing PDN within the cluster has
not be taken into account as the proposed project would be essentially operating as
power augmentation at the tail end of PDN for rural electrification. PDN would be
DISCOMs asset and its cost would be either born by the DISCOM or would be
financed under separate scheme/ programme. Similarly the cost of standalone street
lighting through SPV has not been considered here as it would be for community
purposes requiring one time capital expenditure and power would neither be
distributed nor billed by the project developer.
The typical investment for biomass gasifier based power plant with specifications
mentioned earlier works out to about Rs60,000/ - per kW (See Table5.4). Thus, the
cost of the proposed 1MW gasifier based power plant is considered as Rs600 Lacs.
This excludes PDN to be developed by the DISCOM. It is presumed that the project
developer would design, build, and operate the renewable energy based grid
interactive power plant while DISCOM shall build and operate the network for
distribution of electricity to rural consumers and would own PDN asset. All the
financial and fuel related assumptions, operation and maintenance, working capital,
etc. have been adopted from the Central Electricity Regulatory Commission (Terms
and Conditions for Tariff determination from Renewable Energy Sources) Regulations
2012. The various parameters and assumptions considered while carrying out the
financial analysis of biomass gasifier based power plant for rural electrification project
are summarized below in Table7.1.
Page 48
Table 7.1Various parameters and assumptions for financial analysis
Parameter Head Sub-Head Quantity
Power Plant
Capacity and
Operation
Installed Capacity 1MW
PLF (as per load curve) 68.5%
Working hrs per day 12hrs
Auxiliary Consumption 10.00%
Life of Power Plant 20yr
Capital cost and
sources of fund
related
Power Plant Cost Rs 600Lacs
Debt
Equity
0%
100%
Repayment Period 12yr
Interest Rate 12.25%
Return on Equity 20.00%p.a.
RoE Period 10yr
Return on Equity after 10 years 24.00%
Weighted average of ROE 16.11%
Discount Rate (equiv. to WACC) 13.41%
Depreciation
Biomass fuel
related
Depreciation Rate 5.83%
Depreciation from 13th yr 2.51%
Biomass Requirement 2kg/ kWh
Fuel Price (prevailing price) 1000 Rs/ ton
Escalation 5%
Working capital
fixed charges
O&M Charges 1month
Maintenance Spare 15%
Receivables for Debtors 2months
Fuel Cost 4months
Interest On Working Capital 9.60%
Operation &
Maintenance
% of capital cost 7.27%
Total O&M Expenses Escalation 5.72%
As described in the energy plan for the cluster (estimated demand and load curve), the
plant is proposed to be operated daily for 12hrs in two slots viz. 5hrs in evening for
catering residential lighting load and 7hrs during day time for catering other
community and productive loads. The working life is assumed as 20 years and
operating plant load factor works out at around 69%. Though operating experience for
gasifier based power plant suggests specific fuel consumption values of the order of
1.5 to 1.8 kg/ kWh depending on the quality and type of fuel as well as system design,
here conservative value of 2kg/ kWh has been assumed considering the fact that plant
would be operated mainly on rice husk as renewable biomass fuel resource.
Page 49
Similarly the biomass (rice husk) price has been assumed at around Rs1000 per ton
which is quite likely within cluster, considering the absence of competing usage
(general cause for price rise due to high opportunity cost) by industries requiring it for
meeting process heat requirement. (Refer AnnexureB).
Keeping into consideration the aforesaid facts and parameters, the plant shall generate
annually about 2,747,635kWh, as the net energy for distribution in the identified
cluster and the total cost of generation of electricity from proposed biomass gasifier
based power plant works out to Rs 9.21 per unit and Rs5.94per unit without and with
90% capital subsidy respectively. The Table7.2 below gives detailed bifurcation of cost
of generation of electricity for levelized cost over plant life time of 20 years as well as
that for the first and twentieth year.
Table 7.2Cost of generation (COG) of electricity from biomass gasifier power plant
Particulars
COG (Rs/kWh): Without Subsidy COG (Rs/kWh): With90% Subsidy
Levellized
Tariff
Year 1 Year 20
Levellized
Tariff
Year 1 Year 20
Fuel (Biomass) cost (A) 3.03 2.22 5.62 3.03 2.22 5.62
O&M Expenses(B) 2.31 1.62 4.65 2.31 1.62 4.65
Interest on working capital (C) 0.30 0.24 0.49 0.24 0.18 0.46
Depreciation charges (D) 1.18 1.30 0.56 0.12 0.13 0.06
Interest on term loan (E) 1.00 1.83 0.00 0.10 0.18 0.00
Return on Equity (F) 1.39 1.33 1.60 0.14 0.13 0.16
Fuel cost alone (A) 3.03 2.22 5.62 3.03 2.22 5.62
Operating Cost (A+B+C) 5.64 4.08 10.75 5.58 4.02 10.72
Total COG (A+B+C+D+E+F) 9.21 8.54 12.91 5.94 4.46 10.94
Under the case of potential extended operation of the proposed power plant for 16
hours per day with the time slots of 4 hours each, and with the full load i.e. PLF of
100%, the cost of generation of the plant comes out to Rs 5.19 per unit at the fuel price
of Rs 1000 per tonne, and the units generated by the power plant comes out to
53,56,000 kWh per year.
7.2 Sensitivity Analysis
In this section, sensitivity analysis carried out for the identified parameters related to
the operations of biomass gasifier based power plant for electrification of selected
cluster is presented. Following operational parameters have been considered for this
purpose,
- Input Cost Price of biomass(e.g. rice husk) 1000 to 2476 Rs/ ton
- Different consumer mix (domestic and commercial) (40:60 to 90:10)
- Variations in Capital Subsidy (0 and 90% subsidy)
Page 50
In order to assess the viability gap under various scenarios, the prevailing domestic
and commercial rural area tariff has been taken as Rs1.80 and Rs 2.10per unit as
specified by the Bihar Electricity Regulatory Commission in its order on Aggregate
Revenue Requirement (ARR) and Tariff for FY 2012-13. Annual average escalation of
5% in tariff is assumed over the plant life time of 20 years. The levelized tariff over the
lifetime of the project was calculated for pre-defined mix of consumption by domestic
and commercial categories of consumers.
The findings of the sensitivity analysis and the estimated viability gap (the gap
between the levelized cost of generation and the retail tariff of the distribution
licensee) under different scenariosare summarized below in Table7.3.
Table 7.3Cost of generation (COG) and Viability Gap under different scenarios
Consumer
Mix
Levelized
Tariff
Fuel
Price
0%Capital Subsidy 90%Capital Subsidy
Cost of
Generation
Viability
gap
Cost of
Generation
Viability
gap
Dom:Comm Rs/kWh Rs/MT Rs/kWh Rs/kWh Rs/kWh Rs/kWh
40:60 3.27 2476 13.9 10.63 10.63 7.36
40:60 3.27 2000 12.39 9.12 9.12 5.85
40:60 3.27 1500 10.8 7.53 7.53 4.26
40:60 3.27 1000 9.21 5.94 5.94 2.67
60:40 3.17 2476 13.9 10.73 10.63 7.46
60:40 3.17 2000 12.39 9.22 9.12 5.95
60:40 3.17 1500 10.8 7.63 7.53 4.36
60:40 3.17 1000 9.21 6.04 5.94 2.77
70:30 3.12 2476 13.9 10.78 10.63 7.51
70:30 3.12 2000 12.39 9.27 9.12 6.00
70:30 3.12 1500 10.8 7.68 7.53 4.41
70:30 3.12 1000 9.21 6.09 5.94 2.82
80:20 3.07 2476 13.9 10.83 10.63 7.56
80:20 3.07 2000 12.39 9.32 9.12 6.05
80:20 3.07 1500 10.8 7.73 7.53 4.46
80:20 3.07 1000 9.21 6.14 5.94 2.87
90:10 3.02 2476 13.9 10.88 10.63 7.61
90:10 3.02 2000 12.39 9.37 9.12 6.10
90:10 3.02 1500 10.8 7.78 7.53 4.51
90:10 3.02 1000 9.21 6.19 5.94 2.92
It can be observed from Table7.3 that even with the prevailing low biomass price of
Rs1000 per tonne and consumer mix of 40:60 (domestic : commercial) the viability gap
is Rs 5.94 per unit which reduces to Rs2.67per unit even with 90% capital subsidy.
With increasing price of biomass upto Rs 2476 per tonne (as specified in CERC 2012
regulations) the viability gap increases further to Rs 10.63 and Rs 7.36 per unit,
Page 51
without and with 90% capital subsidy respectively. The viability gap for the consumer
mix of 90:10 (domestic: commercial) increases to Rs 10.88 and Rs7.61 per unit, without
and with 90% capital subsidy respectively.
Thus the financial and sensitivity analysis makes it clear that even with best available
biomass price, good consumer mix and even with 90% capital subsidy provision, huge
viability gap exists with prevailing low DISCOM tariff. Thus there is a need to adopt
innovative implementation mechanism for ensuring private sector participation for
rural electrification through grid interactive RE based DDG power plant to ensure
long term financial sustainability.
Page 52
8 POTENTIAL PROJECT IMPLEMENTATION MODELS
In this chapter an attempt has been made to discuss and suggest possible project
implementation options for the proposed cluster based rural electrification project
using grid interactive RE based DDG project for selected cluster of 42 contiguous
habitations in Hulasganj block of Jehanabad district in Bihar. Two project
implementation models have been suggested here. Based on the comparative analysis,
one potentially viable implementation model along with roll out plan has been
recommended for thisproject.
Proposed RE based biomass gasifier plant is aimed to strengthen the rural
electrification of cluster of 42 contiguous habitations, comprising both, the already
electrified but under-electrified, as well as un-electrified villages/ hamlets. Thus the
biomass gasifier power plant would be connected to existing grid, after its proposed
expansion and strengthening, and thus no longer would remain DDG per se as
electricity would be generated by the power plant but will be distributed through local
DISCOM network. Thus the proposed grid interactive RE based DDG plant would
function more like tail end power supply augmentation plant, being used for
enhancing the power supply position. Therefore, as mentioned earlier, PDN would
remain in the domain of DISCOM. Following two options for implementation of the
proposed project are possible.
- Project developer to act as an Independent Power Producer
- Project developer as an IPP as well as Franchisee
8.1 IndependentPower Producer Model
In this, PD will generate the electricity while DISCOM would continue distributing it
through its PDN. PD and DISCOM will sign the PPA for the lifetime of the proposed
RE based power plant. Accordingly, PD will commission and operate the RE based
power plant to generate and supply the electricity into the local grid by connecting it
to 11kV substation serving the selected cluster. The DISCOM will provide the Feed in
tariff (FIT) as per signed PPA to the PD and consumers would continue paying tariff to
DISCOM as per the prevailing mechanism of metering and billing with consumers of
existing PDN. Figure8.1 below presents the operating structure of proposed IPP
model.
Page 53
Figure8.1Operational Structure of IPPModel
The key steps in implementation of the IPP model are as given below:
PD to identify and develop cluster based project scheme which will include;
o Detailed prefeasibility study of the project
o RE technology selection based on resource availability
o Preparation of Detailed Project Report
DISCOM to approve DPR, which would include
o Approval of selected RE technology by DISCOM
o Approval of selected cluster by DISCOM (contiguous un-electrified and
under-electrified habitation)
PD and DISCOM to form a PPA at FIT
PD toachieve the financial closure
PD to develop and commission the project
PD to generate and supply electricity to the grid substation as per PPA and
receive FIT from DISCOM
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GoI may provide, though not mandatory, central financial assistance to the
DISCOM through SNA for RE based power plant
DISCOM to continue supply of electricity to connected consumers and collect
revenue as per prevailing tariff order
8.2 Distributed Generation based Distribution Franchisee (DGBDF)
In DGBDF model, PD will not only generate the electricity but would also distribute
electricity and carry out the task of metering, billing and collection (MBC) on behalf of
DISCOM, within the selected cluster. Thus, the PD will be performing dual role of the
generator as well as that of franchisee. As a result, there will be two agreements
between PD and DISCOM
(i) PPA for the lifetime of the proposed RE based power plant.
(ii) Franchisee agreement for distribution of electricity and also for
metering, billing and collection of revenue on behalf of DISCOM
According to PPA, PD will commission and operate the RE based power plant to
generate and supply the electricity into the substation and would be connected on
11kV side of the 33/ 11kV Power Sub-Station along with needed breaker system to
enable isolation mode operation when power is not available in the grid. The DISCOM
will provide FIT as per signed PPA to the PD. The PD will also distribute electricity to
rural consumers and the PD will carry out metering, billing and collection activities
under the Franchisee Agreement. PD shall perform MBC for its own plant as well as
for the grid supply and even in case of grid supply available to rural consumers; the
PD shall supply electricity to grid at the pre decided hours for generation of electricity
from the proposed grid interactive DDG plant. Figure8.2 below presents the operating
structure for the proposed DGBDF model.
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Figure8.2Operational Structure of DGBDF Model
The key steps of implementing the DGBDF model are presented below:
PD to identify and develop cluster based project scheme which will include;
o Detailed prefeasibility study for the project
o RE technology selection based on resource availability
o Detailed Project Report
DISCOM to approve DPR, which would include
o Approval of selected RE technology by DISCOM
o Approval of selected cluster by DISCOM (contiguous un-electrified and
under-electrified habitation)
PD and DISCOM to sign two agreements viz. PPA and Franchisee Agreement
PD toachieve the financial closure
PD to develop and commission the project
Project Developer
DISCOM
Flow of Electricity
Tariff (Cash Flow)
FIT (Cash Flow)
Agreement
Consumer
Govt. of India
CFA (optional)
Grid
Consumer Consumer Consumer
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PD to generate and supply electricity to the power substation as per PPA and
receive FIT from DISCOM
PD to act as Franchisee of DISCOM and PD distribute electricity and would
carry out functions of metering, billing and collection (MBC)
GoI may provide, though not mandatory, central financial assistance to the
DISCOM for RE based power plant.
8.3 SWOT Analysis of Implementation Models
In this section, an attempt has been madeto undertake SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis comparing various advantages and disadvantages
associated with the proposed IPP as well as DGBDF models. Tables8.1 and Table 8.2
below summarizes the SWOT analysis of IPP and DGBDF model respectively.
Table8.1SWOT analysis of I PP model
Strengths
Already in operation in power sector in India
May attract private sector participation
Weaknesses
DISCOM to manage PDN in rural areas
Low collection efficiency in rural remote areas
by DISCOM
Opportunity
Helps DISCOM to meet responsibility to
provide electricity in rural areas
Help DISCOM to meet RPO obligation
Threats
Disinterest by DISCOM due to increased FIT
burden with low collection efficiency from
rural areas
Table8.2SWOT analysis of DGBDF Model
Strengths
Shall help attract private sector participation
Better revenue collection efficiency as
responsibility of revenue collection is with
Franchisee
Certainty of cash flow for PD
Relatively low financial assistance required as
compared to IPP model
Weaknesses
Involvement of franchisee framework
Complexity in revenue management
Opportunity
Helps DISCOM to meet responsibility to
provide electricity in rural areas
Helps DISCOM to improve rural outreach
along with improvement in collection
efficiency
Help DISCOM to meet RPO obligation
Threats
Long term sustainability of both agreements in
case of non-improvement in revenue collection
8.4 Recommendations
On the basis of the SWOT analysis presented above, ABPS Infra recommends DGBDF
Model to be adopted for the proposed grid connected RE based DDG pilot project in
identified Hulasganj cluster of LWE district of Jehanabad in Bihar. The rationale for
the recommendation for DGBDF model is given below:
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Attractiveness to private sector participation due to certainty of revenue for
lifetime operation of the plant (DISCOM shall pay FIT, and also CFA, if any
from GoI, and tariff from consumers)
Relatively less financial assistance required
Better collection efficiency for DISCOM, as responsibility of revenue collection
is with project developer
Opportunity to DISCOM for fulfilling its responsibility of rural electrification,
meeting RPO, and promoting renewable as well as strengthening present weak
rural power supply position due to power augmentation at the tail-end.
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9 PROJECT IMPLEMENTATION PLAN
This chapter presents the detailed project implementation plan for the proposed 1MW
grid interactive pilot project in Hulasganj block of Jehanabad district in Bihar using
locally available RE resource. The chapter also discusses the various linkages required
for the project implementation; such as the project site and grid interconnectivity, PDN
and asset management, protocol for power generation, contractual arrangements
between DISCOM and PD, etc.
9.1 Project Site and Grid Connectivity
The selected cluster consists of both types of villages; electrified and un-electrified. In
case of villages that are electrified, electricity is available for less than 6 hr/ day as the
grid does not have sufficient power. The proposed biomass based 1MW power plant is
expected to augment the power supply to cater energy demand of the 42 contiguous
habitations in the selected cluster in Hulasganj block. As a result it is necessary to have
not only connectivity with the grid but also ability to operate the plant in isolation
mode in the event of non-availability of the grid during scheduled power supply
durations. Therefore, it is envisaged that the proposed RE based grid interactive DDG
plant be located close to planned Dhongra substation (being constructed at the site and
likely to be available soon) and would be connected on 11kV side of the 33/ 11kV
Power Sub-Station along with necessary isolator-breaker system to enable isolation
mode operation when power is not available in the grid. The concerned departments
within State Government would be required to provide the requisite land clearance for
the proposed site and permission for grid connectivity with the proposed Power Sub
Station (PSS). Thus the planned DDG project would be connected to PSS at Dhongra
Mushari being constructed under RGGVY, instead of grid sub-station at Hulasganj,
which is providing power to the existing under-electrified villages of the selected
cluster.
9.2 PDN and Asset Management
The pilot project is proposed in a cluster of 42 contiguous habitations out which 24 are
already electrified and are having some PDN which need to be strengthened. Also
there is need to expand it to cater other un-electrified villages within the cluster.
Augmentation and expansion of PDN as per the requirement of project area along
with grid interactive system including power evacuation equipments & controls etc.
shall form part of the project and the entire project cost including such system shall
need to be considered as capital expenditure for considering financial assistance from
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Central Government through Capital subsidy. Strengthening and expansion of the
PDN will becarried out by the implementing agency through PD as per the final DPR.
The PD will be allowed to use the existing as well as newly created infrastructure as a
franchisee of the DISCOM for distribution of electricity in the project area. The PD will
bear all the operation and maintenance costs during the contract period. At the end of
the project agreement period, the PD would transfer the PDN infrastructure back to
the DISCOM at prevailing valuation cost and DISCOM and State Government may
agree to this arrangement.
9.3 Protocol for Power Generation and Grid Management
The proposed project would be grid interactive, wherein the consumers would have
grid access. The PD would ensure minimal duration of power supply to consumers
(excluding irrigation load) during the pre-determined time slots even in the event of
non-availability of grid power. This will call for islanding operation of DDG plant in
absence of grid power. In order to ensure smooth power management within the
cluster, there would be a need to develop a pre-agreed protocol for the DDG plant
operations and the time slots to be agreed / resolved among BSEB, project developer
and the State Government. This grid management protocol would define the
methodology for operation of the plant in case non-availability of the grid.
The project developer shall operate the grid interactive power plant to generate power
from 0500 hours to 0700 hours in the morning as domestic load. The plant will be
operated from 1000 hours to 1600 hours in the evening so as to cater the commercial
load mainly for school, community centres and hospitals and later the plant shall be
operated for power generation to supply evening lighting load to rural domestic
consumers from 1900 hours to 2300 hours. This would give opportunity to operate
proposed RE based DDG power plant in three time slots of 2 hrs in morning, 6 hrs in
afternoon and 4 hours in the evening with short time gaps available for carrying out
daily routine maintenance. The project developer shall have to generate power during
the agreed hours from the 1 MW biomass gasifier power plant and shall distribute
power to the rural consumers of the Hulasganj block of Jehanabad district.
In case the grid supply is available during the agreed duration for generation of power
from the plant, the project developer shall continue to generate during the agreed time
slots and will supply power to the local grid so as to strengthen power situation.
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This protocol thus shall ensure the supply duration of the power plant which will
necessitate the project developer to achieve its financial viability in order to have
smooth running of the plant and even the rural consumers will also be benefited to
have regular and time based supply in which consumers can plan their day to day
routine activities as well as to utilize electricity for variety of commercial activities.
This will help in maximum utilization of the grid interactive power plant.
9.4 Arrangement for Insulation of Agricultural Load
Irrigation is one of the major loads within the cluster but can not besupplied through
the proposed grid-interactive RE based DDG power plant. Significant increase in the
capacity would be required if irrigation load is to be catered necessitating enormous
financial assistance. Also agriculture load cannot be supplied using DDG as per the
prevailing scheme and will have to be catered using the grid power whenever
available within the cluster. In this section, we have developed three different
mechanisms for insulation of agricultural load, which are briefly described below.
9.4.1 Feeder Separation
Agriculture, being one of the major loads of the cluster, there would be a need to
develop an arrangement for the proposed plant which will as work on islanding mode
for operation. In order to reduce losses, one of the simplest ways is to segregate
irrigation load is the feeder separation mechanism. In this mechanism, there would be
separate feeders for the agricultural load. DICOM would bear the cost of developing
separate feeders for the irrigation load, and would be responsible for operation and
maintenance for the concerned PDN for the agricultural area.
9.4.2 Franchisee Arrangement
In this arrangement, the franchisee means the project developer would develop the
complete PDN network for the identified Hulasganj cluster in Jehanabad district
including domestic, commercial and even agricultural. The project developer will
monitor the agricultural load of the cluster, and would be responsible for operation
and maintenance of the PDN for agricultural load which is to be based on incentive
mechanism. This means the project developer would be incentivised for monitoring
the PDN of the agricultural area.
9.4.3 Demand Response
Demand response comprises short-term actions taken by end-use customers to change
(usually reduce) their electricity use in response to high prices in the electricity market;
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and/ or problems on the electricity network. In network-related demand response, the
network operator notifies customers and demand response providerswhen short-term
load reductions are required. In this mechanism, the consumers having agricultural
load would install meters along with load control mechanisms on the pump sets. The
load control mechanism would allow franchisee to disconnect the load in case of non-
availability of grid supply there by restricting demand that can be served by the
proposed 1MW DDG.
9.5 Franchisee Arrangement for MBC
In order to help enhance the financial viability of the project due to low revenue to
meet operating expenses, PD (as distribution franchisee) would be allowed to device
appropriate mechanism (such as prepaid meters, load controllers etc.) for billing and
revenue collection as well as for preventing possible power theft within the cluster.
The PD should also be allowed to develop and implement any DSM initiative within
cluster in an effort to manage the load and enhance financial viability.
Therefore, it is proposed that the PD will act both as generator as well as franchisee
and would be allowed to device appropriate mechanism (such as prepaid meters, load
controllers etc.) for billing and revenue collection as well as for preventing power theft
within the cluster.
9.6 Criteria for PD selection
PD would be one entity, both for carrying out the generation and distribution tasks.
There could be many players available for the same. But considering the fact that, for
remote operation there might be unwillingness or non-availability of one entity doing
both the tasks. Therefore, consortia can be allowed to participate with minimal lock-in
period of partnership for 5 year or more. Pre-condition would be if any one of the
agreements viz PPA and FA gets terminated, then both the agreements would get
terminated. Considering the fact that PD is investing 30% equity and it would be in
business interest of PD to continue both, there is less likelihood of PD would like to
terminate one of the two agreements.
9.7 Contractual Arrangements
The DISCOM shall sign the PPA and Franchisee Agreement with the project
developer. The DISCOM, before signing of agreements, shall undertake necessary
verification of the project developer, the status of un-electrified as well as under-
electrified villages, etc. In case the project developer shall not be able to provide the
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services as mentioned in any one of the agreements, both of the agreements shall be
cancelled. There will also be a possibility of development of one single contract in the
name of Franchisee cum Power Purchase Agreement consisting of features of the both
the Franchisee and PPA.
9.7.1 Franchisee Agreement
There shall be a franchisee agreement between the project developer and the DISCOM.
The agreement shall follow Model Draft Franchisee Agreement approved by the
Government of India as a part of Rajiv Gandhi Grameen Vidyutikaran Yojana and
would contain the following:
Date Agreement
Contracting Parties
Definitions and Interpretations
Definition of Area
Period of the Contract
Billing and Payment Cycle
Agreed Power Price
MRV Process
Force Majeure Conditions
Roles and Responsibilities of Project Developer / Franchisee
Right of Use - The franchisee shall be entitled to use the DISCOMs existing
distribution assets to perform its obligation under this Agreement.
Load Forecast Franchisee shall carry out demand estimation / load forecast
of the Franchise Area periodically and apprise the same to the DISCOM
Operation and Maintenance Franchisee shall at its own cost perform
following within the cluster:
o O&M of Distribution Assets from the start of input feeders
o O&M of sub-stations and transformer stations
o Installation and replacement of metering devices and carry out meter
reading of all feeders and distribution transformers
o Repair, maintain and replace failed distribution transformers as per the
applicable Supply Code and Standards of Performance notified by
BERC
o Maintain a minimum level of rolling stock of transformers and other
necessary material
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o Upgrade, renovate and maintain the existing distribution network/
systems/ IT assets and systems as per Prudent DISCOM Practices and
the standards that may be prescribed by BERC.
Compliance Standards - Franchisee shall take all reasonable steps to ensure
that all consumers within the franchise area receive a safe and reliable supply
of electricity as defined by BERC.
Consumer Complaint Handling Franchisee shall develop complain handling
procedure to be approved by DISCOM.
Consumer Services Franchisee, on request of the consumer, to the extent that
is reasonably available to the franchisee, shall provide, information on all
services such as meter readings, information on status of customers account,
etc.
Obligation to connect consumers - Franchisee shall, on the application of the
owner or occupier of any premises within the Franchise Area
Commercial and Responsibilities Franchisee shall perform the following,
o Meter reading and billing to the consumers as per the retail tariffs
approved by BERC from time to time;
o Collection from consumers as per billing;
o Collection of arrears / adjustment of arrears on account of Consumers
who are permanently disconnected by the Franchisee;
o Make timely payments of collected revenue to DISCOM as per the
terms and conditions of this Agreement;
o Replace defective meters with new meters;
o Maintain consumer data base and billing records;
o Initiate necessary action, in accordance with the procedure of anti-theft.
Roles and Responsibilities of DISCOM
Supply of Energy DISCOM shall supply energy at input points of the grid
sub-station. However, this supply may vary subject to SLDC Directives on load
shedding. Without prejudice to the foregoing, DISCOM shall not discriminate
in the supply of power between the Franchise Area and its other Distribution
areas
DISCOM shall ensure the supply of power to Franchisee of acceptable quality
standards
DISCOM shall communicate to Franchisee any shortfall or inability to supply,
the power requirements of the Franchisee
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DISCOM shall carry out meter reading jointly with Franchisee on a monthly
basis at Input Points / interconnection point of the Franchise Area
DISCOM shall support the Franchisee initiatives to adopt innovative practices
to bring about effectiveness and efficiency in electricity distribution business
DISCOM shall incur capital expenditure in case further augmentation of PDN
is required during the period of franchisee agreement.
9.7.2 Power Purchase Agreement
There shall be a PPA between the project developer and the DISCOM. The PPA shall
contain the following information:
Date of Agreement
Contracting Parties
Definitions and Interpretations
Capacity of the project in kW and also in kWh.
Complete details of the distribution network, declare thevoltage levels, etc.
Measurement, Reporting and Verification (MRV) process
Grid Synchronization
Tariff
Period of Contract
Billing and Payment Cycle
Delayed Payment Charge
Force Majeure Conditions
Roles and Responsibilities of Project Developer
Project developer shall comply with the Grid Code, Load Despatch & System
Operation Code, Metering Code, Performance Standards, Protection Code and
Safety Code etc. as applicable from time to time in the State
Project developer shall also provide suitable protection and control devices /
islanding devices as a future provision for synchronization of plant with grid
The project developer shall be responsible for security & protection of metering
arrangement based on the location of metering as stipulated in the metering
code.
The project developer shall develop the meter reading, sealing and billing
procedure
Project developer shall submit the billing details to DISCOM and shall raise
invoice based on the sale of utility power as well as the sale of proposed 1 MW
biomass gasifier power to the consumers.
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Roles and Responsibilities of DISCOM
The DISCOM and Project Developer shall jointly read the metering system
The DISCOM shall purchase RE based power generated by DDG from PD to
for agreed operation duration as per protocol of plant operation. Even if grid
power is available DISCOM would import power from RE based DDG plant at
least for agreed generation as per protocol signed among PD-DISCOM-SERC.
The DISCOM shall purchase power from PD on the Feed-in-tariff as specified
by BERC from time.
DISCOM shall pay the FIT to project developer based on the invoice received
from project developer
9.8 Financial assistance needed to ensure financial viability
Preliminary financial analysis presented in previous section indicates that, with the
prevailing DISCOM tariff, the proposed RE based DDG project is not financially viable
even with 90% capital subsidy. Therefore there is a need of additional financial
assistance to ensure viability of the plant operation over its lifetime. This viability gap
would further increase if the cost of PDN augmentation is included into the capital
cost of the DDG project.
Thus the financial assistance for DDG project would consist of capital subsidy (under
DDG scheme of the Central Government) as well as additional viability gap support
through DISCOM/ State Government. This requirement of additional viability gap
funding would be required to cover the difference between cost of generation and
distribution (at given capital subsidy) and DISCOM Tariff. Since the BSEB will be
purchasing entire electricity generated by the Project, the said may be accounted to
fulfil its RPO and therefore the viability gap in the form of difference between Cost of
Generation and Consumer Tariff may be absorbed by the BSEB.
It is proposed that the financial assistance to project developer would comprise of both
capital subsidy while commissioning of the DDG power plant and additional viability
gap on annual basis to meet difference between cost of power distribution and
prevailing Discom tariff while generating and supplying power over lifetime of the
project. The capital subsidy would be limited to 70% of the total project cost so as to
have minimal 30% as equity contribution by PD in line with prevailing practise in
power sector. Reduced subsidy level and increased equity share might increase the
additional viability gap required for providing power but would help attract private
Page 66
sector participation due to enhanced business interest and ownership would help
ensure effective plant operation throughout its life time. Project cost for the proposed
pilot project would comprise of RE based DDG power plant cost (excluding land cost;
as land would be provided by the State Government) along with grid interactive
control equipments and PDN augmentation. Though in the long run PDN cost can be
treated separately (resulting in reduced viability gap requirement for providing
power) and can be covered under distribution infrastructure enhancement programme
and can be financed separately. The viability gap for providing power and prevailing
DISCOM tariff would be paid annually over the lifetime of power plant and would be
borne by the BSEB. Necessary support may be provided by the State Government.
As per the preliminary calculations with 30% equity (70% capital subsidy) and
assumptions (prevailing biomass price of Rs1000/ ton, domestic to commercial load
profile of 60:40, etc) the levelized annual viability gap for generating and supplying
power works out to approx Rs197 Lakh annually over lifetime of 20 years. However,
at the time of project approval this viability gap would need to be calculated based on
the agreed operating parameters for given RE technology and prevailing values of
different parameters and DSCOM tariff and also quantum of capital subsidy to be
provided by Central govt.
9.9 Bid Process Management
It is proposed that the necessary financial support as well as assistance to
Implementing Agency which is DISCOM for bid process management of this first pilot
project be provided by UNDP-MoP under its ongoing `Access to Energy programme.
UNDP will help accelerate the project bidding process through its own channel and
can help in identification of consultant and provide needed assistance so as to keep
project on track before closure of ongoing programme by December 2012.
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10 ROLL OUT PLAN FOR PROPOSED RE BASED DDG
PROJECT
This chapter presents the possible Roll Out Plan for implementation of the proposed
cluster based rural electrification project in selected cluster of 42 contiguous
habitations in Hulasganj block of Jehanabad district in Bihar. The step-by-step roll out
plan for implementation of the IPP model is given below:
Approval of DPR from UNDP-MoP as well as Project Coordination Committee
of the key stakeholders
Site Clearance for the proposed DDG Plant site near upcoming substation at
Dhongra Mushari, Village Tesaur of Chiri Panchayat
Allocation of fund by MoP and/ or UNDP and State Government for the
implementation of the proposed project
Concurrence of BSEB/ DISCOM for participation in the project and handing
over distribution assets to PD
Filing of the petition beforeBERC for determination of FIT by BSEB
Approval of FIT by BERC
Preparation of bid document by BSEB (implementing agency)
Conduct tariff based reverse bidding by BSEB
Selection of the project developer and award the contract by BSEB
Signing of PPA and Franchisee Agreement betweenDISCOM and PD
Financial closureby PD
Construction and commissioning of RE based Power Plant by PD
Construction/ refurbishment of the PDN network by PD
Generation and distribution of electricity by PD and connecting to power sub-
station and payment of FIT as per PPA by DISCOM to PD throughout the RE
power plant life duration.
MBC to be carried out by PD.
Page68
ANNEXURE A INFORMATIONDATA BASE OF VILLAGES-HAMLETS IN SELECTED CLUSTER
Bauri Panchayat
Bauri Panchayat
Census Village Bauri Dadpur Harpur Bihta Dihuri Kewla
Habitation (Villag/Hamlet) Total/ Average Bauri Gidarpur Kisunpur
Rupa
Bigha
Dadpur
Adhikari
Bigha
Harpur Bihta Dihuri Kewla
Village Census Code (Census 2001) 3773600 NA NA NA 3773500 NA 3773200 3773300 3773400 3772400
Village Area (ha) (Census 2001) 881 289 88 25 176 171 132
No of Households (Census 2001) 1104 449 90 49 184 267 65
Village Population (Census 2001) 7497 3088 636 317 1131 1849 476
No BPL HH (Survey) 887 375 65 20 40 100 10 15 50 152 60
No of Non-BPL HHs (Survey) 793 350 55 20 60 70 20 25 55 98 40
No of Total HHs (Survey) 1680 725 120 40 100 170 30 40 105 250 100
Average HH Annual Income (Rs) 3206 3250 3250 2850 4250 1750 3206 3750 3500 3250 3000
4.55 5.5 5 4.5 4.5 4.5 3.5 4.5 4.5 5.0 4.0
Avg expense for supplementing electricity
(Rs/ HH/ month)
114 140 125 130 115 115 80 90 125 100 120
Avg Expenses on Diesel Usage
(Rs/ HH/ month)
127 125 125 130 125 125 125 135 125 120 130
Willingness to pay (Rs/ month) 79 75 85 75 79 80 50 75 90 85 100
Community Buildings in Village/Hamlet
Panchayat Bhawan / Community Centre 1 1 0 0 0 0 0 0 0 0 0
School 7 1 1 0 1 1 0 0 2 1 0
Public Health Center 1 0 0 0 1 0 0 0 0 0 0
Cooperative-Bank 0 0 0 0 0 0 0 0 0 0 0
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Bauri Panchayat
Census Village Bauri Dadpur Harpur Bihta Dihuri Kewla
Habitation (Villag/Hamlet) Total/ Average Bauri Gidarpur Kisunpur
Rupa
Bigha
Dadpur
Adhikari
Bigha
Harpur Bihta Dihuri Kewla
Commercial Activities in Village/Hamlet
Atta chakki 13 3 1 0 3 2 1 0 1 1 1
Cane crusher/ oil mill 2 0 2 0 0 0 0 0 0 0 0
Rice mill/ huller 5 0 0 1 2 2 0 0 0 0 0
No of Irrigation Pumpsets 349 50 80 15 70 50 0 9 10 25 40
Sources of Energy
Grid availability in Villages/ Hamlets 6 1 0 0 0 1 0 1 1 1 1
Daily power supply (hr) Annual Avg 5.4 5.5 NA NA NA 5.5 NA 5.5 5.0 6.0 5.0
Monthly availability (day) Avg 17.50 15 NA NA NA 25 NA 12 20 18 15
Crop ResidueProduction
Rice 2415 800 350 125 150 250 50 10 300 300 80
Wheat 2045 700 300 125 150 200 0 10 250 250 60
Oil Seed 265 100 0 5 10 10 0 0 50 50 40
Sugarcane 120 0 20 5 20 15 0 0 20 20 20
Other Crop (Arhar) 60 0 0 0 0 20 0 0 20 20 0
Page70
Khudaur Panchayat
Khudaur Panchayat
Village Total/
Average
Khudauri Raghunathpur Narma Mokimpur Walipur Golakpur
Habitation Khudauri Rampur Raghunathpur Narma Emitpur Benipur Mokimpur Walipur Golakpur
Village Census Code (Census 2001) 3773700 NA 3773800 3773900 NA NA 3774000 3775200 3775500
Village Area (ha) (Census 2001) 1099 223 85 372 54 230 135
No of Households (Census 2001) 1275 330 133 334 35 232 211
No BPL HH (Survey) 610 100 20 20 180 80 20 120 40 30
No of Non-BPL HHs (Survey) 550 100 35 55 155 45 10 80 60 10
No of Total HHs (Survey) 1160 200 55 75 335 125 30 200 100 40
Average HH Annual Income (Rs) 3828 2750 3500 4000 4500 4500 3000 4250 4250 3700
4.8 4.5 4.0 4.5 5.5 5.5 5.0 5.0 4.5 4.5
(Rs/ HH/ month)
129 135 125 125 145 135 135 100 130 130
(Rs/ HH/ month)
121 120 150 110 145 135 135 90 100 100
Willingness to pay (Rs/ month) 88 80 70 90 100 100 90 100 80 85
Panchayat Bhawan / Community Centre 2 1 1 0 0 0 0 0 0 0
School 6 1 1 1 1 1 0 1 0 0
Public Health Center 6 1 1 0 2 0 0 1 1 0
Cooperative-Bank 1 0 0 0 1 0 0 0 0 0
Atta chakki 17 1 5 2 2 1 0 2 0 4
Cane crusher/ oil mil 2 1 0 0 0 0 0 1 0 0
Rice mill/ huller 20 1 5 2 2 2 2 2 3 1
No of Irrigation Pumpsets 417 100 30 10 100 40 12 100 20 5
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Khudaur Panchayat
Village Total/
Average
Khudauri Raghunathpur Narma Mokimpur Walipur Golakpur
Habitation Khudauri Rampur Raghunathpur Narma Emitpur Benipur Mokimpur Walipur Golakpur
Sources of Energy
Grid availability in Villages/ Hamlets 5 1 0 1 1 1 0 1 0 0
Daily power supply (hr) Annual Avg 5.50 6 NA 5 6 5 NA 5.5 NA NA
Monthly availability (day) Avg 19.60 15 NA 18 15 25 NA 25 NA NA
Rice 4465 1700 0 1000 1000 140 15 160 250 200
Wheat 4215 1500 0 1000 1000 140 15 160 250 150
Oil Seed 190 100 0 0 30 0 0 0 10 50
Sugarcane 192 50 0 0 50 10 2 10 20 50
Other Crop (Arhar) 300 0 0 300 0 0 0 0 0 0
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Kokarsa Panchayat
Kokarsa Panchayat
Village Total/
Average
Kokarsa Mirzapur Sukiyawan Lodipur Rustampur Rustampur
Habitation Kokarsa Mirzapur Sukiyawan Lodipur Rustampur Beldaripur
Village Census Code (Census 2001) 3775100 3774100 3774200 3775700 3775000 NA
Village Area (ha) Census 2001 1157 457 66 204 58 372
No of Households (Census 2001) 1522 555 107 220 105 535
Village Population (Census 2001) 10391 4105 753 1493 719 3321
Village Population (Census 2011) 12061 5118 789 1628 911 3615
No BPL HH (Survey) 660 200 70 35 80 250 25
No of Non-BPL HHs (Survey) 1205 900 40 25 40 100 100
No of Total HHs (Survey) 1865 1100 110 60 120 350 125
Average HH Annual Income (Rs) 3820 4000 3820 4000 3700 3700 3700
5.25 6 5 4.5 5 6.5 4.5
(Rs/ HH/ month)
130.8 140 125 120 130 135 135
Avg Expenses on Diesel Usage(Rs/ HH/ month) 113 100 120 130 100 115 135
Willingness to pay (Rs/ month) 83.3 70 90 100 90 75 75
Panchayat Bhawan / Community Centre 2 1 0 0 1 0 0
School 5 1 1 1 1 1 0
Public Health Center 3 1 0 1 1 0 0
Cooperative-Bank 1 0 0 1 0 0 0
Atta chakki 23 10 5 5 0 3 0
Cane crusher/ oil mil 9 1 4 0 0 4 0
Rice mill/ huller 0 0 0 0 0 0 0
No of Irrigation Pumpsets
820 500 30 20 20 250 0
Page73
Kokarsa Panchayat
Village Total/
Average
Kokarsa Mirzapur Sukiyawan Lodipur Rustampur Rustampur
Habitation Kokarsa Mirzapur Sukiyawan Lodipur Rustampur Beldaripur
Sources of Energy
Grid availability in Villages/ Hamlets 5 1 1 1 1 1 0
Daily power supply (hr) Annual Avg 5.10 5.5 4.5 5 4.5 6 NA
Monthly availability (day) Avg 18.80 30 10 20 12 22 NA
Rice 2620 1600 0 0 0 1000 20
Wheat 2620 1600 0 0 0 1000 20
Oil Seed 5 0 0 0 0 5 0
Sugarcane 50 50 0 0 0 0 0
Other Crop (Arhar) 5 5 0 0 0 0 0
Page74
Chiri Panchayat
Chiri Panchayat
Village Chiri Dumri Sarma Sisara Ginnji
Habitation Chiri Dumri Sarma Manjhi Tola Ratan Bigha Sisara Ginji ChaitiPipar Dhongra
Village Census Code (Census 2001) 3771900 3772000 3772100 NA NA 3772200 3772300 NA NA
Village Area (ha) Census 2001 218 132 193 133 185
No of Households (Census 2001) 371 150 162 69 170
Village Population (Census 2001) 2401 985 1141 604 1256
Village Population (Census 2011) 2982 1021 1103 798 1527
No BPL HH (Survey) 125 90 50 40 10 51 37 80 5
No of Non-BPL HHs (Survey) 225 80 100 0 0 24 98 15 100
No of Total HHs (Survey) 350 170 150 40 10 75 135 95 105
Average HH Monthly Income(Rs) 4000 1500 4000 1200 2500 3000 4500 2500 3750
6 6 6 2.5 4.5 5.5 5.5 4.5 4.5
(Rs/ HH/ month)
150 150 150 65 125 125 135 125 115
(Rs/ HH/ month)
120 150 150 50 130 110 120 125 100
Willingness to pay (Rs/ month) 120 100 125 90 80 60 100 100 80
Panchayat Bhawan / Community Centre 1 0 0 0 0 0 0 1 0
School 1 1 1 0 0 1 0 0 1
Public Health Center 1 1 0 0 0 1 1 0 0
Cooperative-Bank 0 0 0 0 0 0 0 0 0
Atta chakki 8 5 2 0 0 1 2 0 1
Cane crusher/ oil mil 0 0 0 0 0 0 0 0 0
Rice mill/ huller 0 10 5 0 0 20 0 1 2
No of Irrigation Pumpsets 100 70 5 0 0 30 20 0 90
Page75
Chiri Panchayat
Village Chiri Dumri Sarma Sisara Ginnji
Habitation Chiri Dumri Sarma Manjhi Tola Ratan Bigha Sisara Ginji ChaitiPipar Dhongra
Sources of Energy
Grid availability in Villages/ Hamlets 1 1 1 0 0 1 1 0 1
Daily power supply (hr) Annual Avg 4 5 5 NA NA 5 5 NA 4.5
Monthly availability (day) Avg 10 12 15 NA NA 18 10 NA 13
Rice 1000 400 150 0 0 300 400 25 300
Wheat 800 300 100 0 0 300 320 25 300
Oil Seed 150 25 20 0 0 0 5 5 1
Sugarcane 50 40 5 0 0 15 40 3 5
Other Crop (Arhar) 0 0 0 0 0 5 0 0
Page76
Chiri Panchayt (Contd.)
Chiri Panchayat (contd....)
Village
Total/
Average
Teasaur Sarthua
Habitation Teasaur
Dhongra
Mushari
Sarthua Sevapuri
Bhagu
Bigha
Bulaki Bigha
Desai
Bigha
Kolbhapur
Village Census Code (2001) 3774400 NA 3774500 NA NA NA NA NA
Village Area (ha) 1532 346 325
No of Households (2001) 1383 183 278
Village Population (2001) 9744 1421 1936
Village Population (2011) 11551 1670 2450
No BPL HH (Survey) 879 75 140 75 15 25 1 25 35
No of Non-BPL HHs (Survey) 818 15 0 25 11 45 10 35 35
No of Total HHs (Survey) 1697 90 140 100 26 70 11 60 70
Average HH Annual Income (Rs) 3182 4250 1750 3600 4250 3800 3000 2000 4500
4.76 5.5 4 4.5 4.5 4 4 5 4.5
(Rs/ HH/ month)
120 130 90 140 100 85 100 120 130
(Rs/ HH/ month)
117 90 120 130 85 100 165 130 110
Willingness to pay (Rs/ month) 88 75 100 75 75 80 80 75 80
Panchayat Bhawan / Community Centre 3 0 0 0 0 0 0 0 1
School 8 1 1 1 0 0 0 0 0
Public Health Center 5 0 1 0 0 0 0 0 0
Cooperative-Bank 0 0 0 0 0 0 0 0 0
Atta chakki 29 3 0 0 3 0 2 0 2
Cane crusher/ oil mil 2 0 0 0 0 0 2 0 0
Rice mill/ huller 43 1 0 0 0 2 0 1 1
No of Irrigation Pumpsets 507 15 0 100 20 10 4 3 40
Page77
Chiri Panchayat (contd....)
Village
Total/
Average
Teasaur Sarthua
Habitation Teasaur
Dhongra
Mushari
Sarthua Sevapuri
Bhagu
Bigha
Bulaki Bigha
Desai
Bigha
Kolbhapur
Sources of Energy
Grid availability in Villages/ Hamlets 0/1 1 1 1 0 0 0 0 0
Daily power supply (hr) Annual Avg 5.0 6 5 5.5 NA NA NA NA NA
Monthly availability (day) Avg 15.4 30 16 15 NA NA NA NA NA
Rice 5300 900 100 1200 100 0 0 25 400
Wheat 4140 800 70 650 100 0 0 25 350
Oil Seed 326 0 20 100 0 0 0 0 0
Sugarcane 240 50 10 0 10 0 0 2 10
Other Crop (Arhar) 15 0 0 0 10 0 0 0 0
Page 78
ANNEXURE B: ECONOMICASSESSMENT OF AGRO-
RESIDUE ASENERGY RESOURCE
Preamble
Biomass can be classified as woody and non-woody biomass. Non-woody biomass
comprises of agro-crop and agro-industrial processing residue such as rice husk,
groundnut shells, coffee husk, straws and stalks, coconut shells, coconut husk, jute
sticks etc.
Crop residues are plant materials remaining in the farm after removal of the main crop
produce. The remaining materials could be of different sizes, shapes, forms and
densities i.e. straw, stalks, sticks, leaves, haulms, fibrous materials, roots, branches,
twigs etc. The agro-industrial residues, are by-products of post harvest processes of
crops viz. cleaning, threshing, delinting, sieving, crushing, etc. and could be in the
form of husk, dust, straws etc. The major crop residuesproduced in India are straws of
paddy, wheat, millet, sorghum, pulses, and oil-seed crops, maize stalks and maize
cobs, cotton stalks, jute sticks, sugar cane trash, mustard stalks etc. The agro-industrial
residues are groundnut shells, rice husk, bagasse, cotton waste, coconut shell and coir
pith.
The quantity of agricultural residues produced, differs from crop to crop and is also
affected by seasons, soil type, irrigation conditions etc. Production of agricultural
residues is directly related to the corresponding crop production and ratio between
main crop produce and residues, which varies from crop to crop and at times with the
variety of the seeds in one crop itself. Thus for known amounts of crop production, it
may be possible to estimate the amounts of agricultural residues produced using the
residue to crop ratio.
Most of the agricultural residues are not available throughout the year and become
available at the time of harvest. This makes collection easy, but creates storage
problems if residues have to be saved for use during other months of the year
especially due to its low bulk density. The amount available depends upon harvesting
time, their storage-related characteristics, the storage facility etc.
In India normally two crops are taken, namely Kharif and Rabi, therefore, availability
of crop residues is expected to be spread evenly over the year. As a result, crop
residues of one kind or the other are available throughout the year. Since the crop
production depends upon the agro-climatic conditions, all agro-residues are not
available in all parts of the country.
Analysis to estimate monetary value of biofuels
Biomass, both woody as well as agricultural residues, have acquired considerable
importance as biofuels for variety of energy enduses such as domestic cooking,
industrial process heating, electrical power generation etc. In order to formulate and
implement long-term strategies for efficient and economic utilization of biomass as
energy source, it is important to estimate their monetary value for the end user.
Page 79
Two approaches can be used for determining the monetary value of biofuels
Supply side approach or production cost method in which the contribution of
each step in biofuel production, harvesting, processing, collection, transportation
etc. is taken into account,
Demand side approach or an opportunity cost estimation based on the amount
and cost of fuel(s) that is likely to be substituted by biofuels.
Cost of Agro-Residues: Supply Side Approach
Agricultural residues are produced as a byproduct along with the main crops during
their harvesting. Thus normally they are assumed to be available at no cost to the
user, which may not be a realistic assumption. As long as the owner himself uses the
agricultural residues, their costs may not be explicitly worked out. However, right
from their production and handling from the farm, to the point of their utilization, it is
found that the cost of agricultural residues may be substantial. This is the minimum
cost of agro-residue which producer or supplier should get below which it may not be
economical to ensure consistent supply of agro-residue as bio-fuel for their enduse
applications.
As a first approximation, while determining the supply cost (Car) of an agro-residue, it
may be assumed that the costs of crop production, harvesting, collection,
transportation and storage of the residue would be the primary contributors towards
the cost of agro-residues. A simple approach towards estimation of the supply costs of
agricultural residues (taking into account the above factors) has been considered and
explained in detail in the following research paper.
Tripathi AK, Iyer PVR, Kandpal TC, Singh KK. Assessment of availability and costs of
someagricultural residues used as feedstocks for biomass gasi/cation and briquetting in
India. Energy Conversion and Management 1999; 39(15): 16118.
The total supply cost of agricultural residues, Car has been calculated as,
ar s ar t ar C ar h ar p ar
C C C C C C
, , , , ,
+ + + + =
Where,
Cp,ar Production cost of agro-residue(normally be fixed by a certain fraction
Far of total cost of crop production (Ccp). (
cp ar ar p
C F C =
,
)
Ch,ar Harvesting cost of agro-residue (generally neglected if residue is
produced during harvesting as byproduct and considered if crop
harvesting is done first followed by separate residue harvesting e.g.
maize cobs and cotton stalks)
Cc,ar Collection cost (required to be collect single point before transportation
Ct,ar Transportation cost (based on mode of transport, carrying capacity,
speed, distance, fuel consumption, fuel price, etc)
Cs,ar Storage cost (based on handling and capital invested in storage facility)
Page 80
The supply cost of rice has been calculated using above approach and by using
prevailing price values and findings are tabulated below.
Supply cost components of rice husk (Rs/ tonne)
Distance Production Collection Transportation cost Total supply Cost
Animal cart Tractor trolley Animal cart Tractor trolley
0-15km
304 48
108 134 706 732
15-30km 216 268 814 866
30-45km 324 402 922 1000
Note: Separateharvesting not considered for ricehusk as included in production cost (no separateharvesting of residues) and storagecost is
not considered as normally ricehusk is stored in open space
It can be observed that the minimum cost to ensure the supply of rice as biomass fuel
as an economically viable proposition varies from Rs706 to 922 and Rs 732 to 1000per
tonne for animal and tractor trolley respectively for a distance range from 0-15 km to
0-45km.
Cost of Agro-Residues: Demand Side Approach
In the supply side approach the contribution of the costs of production, harvesting,
collection, transportation and storage is taken into account to arrive at a reasonable
estimate of minimum monetary value of agro-residue. This method does not take into
account the quality of the agro-residue such as its energy content (calorific value) and
the effect on efficiency for its utilization, during energy conversion to meet energy
requirement. In order to overcome this drawback there is need calculate the maximum
affordable cost (monetary value of opportunity cost) of agro-residue as biomass fuel
for given energy application. This maximum affordable cost (MACar) of the agro-
residue is essentially the monetary value of equivalent amount of fossil fuel that can be
replaced by use of agro-residue as bio-fuel, which can be used as
- A measure of equivalent monetary worth of agro-residues
- A basis for comparison of the prices of two or more agricultural residue for a
given application
- An upper limit to the price of agro-residue beyond which the use of fossil fuel
may be better economical/ financial option.
Normally, the calorific value of agro-residues and the efficiency of their utilization for
particular energy application differ from that of alternate fossil fuel that is presently
being used. The maximum affordable cost of agricultural residue (MACar) can be
determined by taking into consideration of these differences in calorific values and
efficiencies of their utilization by using following equation
ff
ff ff
ar ar
ar
C
CV
CV
MAC
(
(
Where, CVar and CVff represents the calorific value of agro-residue and fossil fuel
(being substituted by agro-residue) respectively, while qar and qff represents the
thermal efficiency of utilization for the same enduse for agro-residue and fossil fuel
respectively, and Cff is the unit price of fossil fuel at the enduse location. The
Page 81
expression in the square bracket of equationrepresents the equivalent specific mass of
fossil fuel that is being replaced by agro-residue. The characteristics of rice husk are
Characteristic of selected biomass agro-residues
Calorific value
(kcal/ kg)
C
(%)
H
(%)
N
(%)
O
(%)
Ash
(%)
3180 37.03 5.25 0.09 40.94 16.69
The maximum affordable cost (MACar) calculated for rice husk for various competing
fuel usage for thermal heat requirements can be tabulated as below.
Maximum affordable cost (MACar) of agro-residues
Fuel Rice husk Coal FO/ LDO
Calorific Value (kcal/ kg) 3180 3300 9600
Efficiency (%) 15 40 70
Price (Rs/ tonne) 3000 37000
MAC of rice husk (Rs/tonne) 1084 2626
The estimated maximum affordable cost (MACar) for rice husk works out to Rs 1084
and Rs2626 per tonne, in competing process industries; presently using coal and
FO/ LDO for meeting heat energy requirement. Thus the price of rice husk within the
cluster would range from minimum of Rs 700 per tonne (supply cost within 0-15km)
to Rs2626 per tonne if competing usage gets developed consuming significant
quantity of available rice husk from cluster for replacing present use of FO/ LDO. In
case of scarcity within cluster rice husk can be procured at around Rs1000per tonne
from distance of about 45km having surplus availability.

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