BIOMASS GASIFICATION:

ECONOMIC VIABILITY AND SOCIAL ASPECTS OF RURAL

ELECTRIFICATION

Prepared by:

Ruhi Sonal

B.A (hons) Economics - 3rd year, Lady Shri Ram College, University of Delhi

Abstract:

Energy is an essential input for development. The state of Bihar figures among the lesser developed
regions of the country and suffers from non-availability of energy infrastructure. Out of a total 45,103
revenue villages in Bihar 15,241 villages remain without electricity. The following paper examines the
possibility of electrifying these villages through biomass gasification plants installed at village level,
an environment friendly alternative for villages where electrification through centralised power grids
is non viable.

The slow progress of rural electrification in the state of Bihar underlines much more than mere
implementational failures. Extending electricity to rural areas through the centralised grid systems that
are used for towns has been found to be non viable, owing to extremely low income of the people in
these areas. The official figure for rural households yet to be electrified stands at 56.5% of the total.
The Government of India has set itself the ambitious target of electrifying all households by 2012.
Renewable sources are being viewed as the most suitable means for remote villages. Given the features
of the typical village in Bihar, there is substantial scope for utilizing agricultural wastes for the
generation of electricity.

Profile of a typical village in Bihar:

The total area classified as rural in the state is 92,257.51 sq. km. With a total of 45,103 villages, the
average area available per village (including culturable wastelands, forest areas, fallow lands and
permanent pastures) is 2.05 sq. km. approximately. Nearly 90% of the state's population lives in rural
areas. On the basis of the average village population according to census 2001 statistics, brought
forward by the decadal rate of growth of population for the state (2.8%), the population of an average
village in 2011 is estimated as 1,691 persons approximately. This estimate is likely to be on the higher
side, as the effect of urban migration has not been included. In case of small villages, one plant can be
constructed for the joint use of two or more villages. An eighteen month lag from the current date has
been taken, considering the time required for implementing the project. The estimated number of
households in a village is 339, given the average family size of 5 (as per census 2001). Rural Bihar is
predominantly agrarian, with more than 80% of the workforce employed in cultivation. The level of
industrialization in the state is dismal. Little or no access to electricity is an important reason for the
low level of economic activity in rural areas. Due to low rural educational attainment (literacy rate is
only 43.9%), any rural electrification programme must also be accompanied by programmes aimed at
spreading awareness about the need for judicious utilization of the installed systems. Energy surveys
carried out by the Bihar Renewable Energy Development Agency (BREDA) reveal that the rural
population is enthusiastic about participating in training programmes and workshops that will equip the
villagers with the knowledge and means to ensure proper functioning of the installed biomass
gasification systems. The villagers have also displayed willingness to move towards cleaner sources of
energy, if made accessible.

Estimating electricity requirement:

Electricity requirement arises primarily from households, industrial units and from basic infrastructure
such as schools, community centres, panchayat bhawans, etc. Here the basic requirement of lighting,
electric fans, an average number of television sets and micro industrial units have been taken into
account.

1. Households: The requirement of energy has been calculated on the assumption that 80% of the
households will use one CFL bulb (15 watts) and one electric fan (60 watts), while 20% of the
households use two CFL bulbs and two electric fans. Installing an electric fan remains the decision of
the individual households which may choose to install another CFL or an electric socket instead. To
bring the media exposure level of the village at par with the national average, provision has been made
for electricity to cover 102 television sets (70 watts), which shall account for 30% of households, if one
TV set per household is installed.
2. School, post office and other centres of public utility: Further energy requirements arise if the
village has a primary school. Assuming that the village has a primary school that conforms to the
national rural average of 3 rooms (working assumption of room size: 30ftX15ft) in use for instructional
purposes against the state's average of 1.9 rooms, four CFLs and three electric fans per school room are
required. The village may also be expected to have a community centre/post office/panchayat bhawan
which further requires one CFL and one electric fan.

3. Industrial use: Although the occupational structure of rural Bihar is dominated by agriculture, micro
industries and processing units can be expected to require up to 15-17 kilowatts of power. The micro
units will include: wheat grinder (3.75 kw), rice huller (10 kw), other small units such as repair shops,
sewing machines, candle making or basket weaving enterprises.

4. Water: The village will also require power for drawing water for various purposes (excluding
irrigation). 1800 watts have been allocated for water extraction.

The total energy requirement is estimated as 55.328 kilowatts. On the basis of this estimate, a 60
kilowatt biomass gasification plant is recommended.

Electrification using biomass gasification:

Technology: Biomass comprises of agricultural (crop) residue such as rice husk, timber, crops grown
specifically for energy generation, sewage sludge and animal manure. Traditional methods of electricity
generation rely on non renewable fossil fuels such as coal which are rapidly depleting. The
sustainability offered by biomass gasifier systems ensures that the long term benefits of installing such
systems to the society, economy and the environment outweigh the heavy initial expenditure. Also,
small plants installed at the village level are an apt solution to the viability problems which grid
extension projects have faced.

A biomass gasifier is a reactor that converts biomass into clean gaseous fuel. The process involves
subjecting the solid biomass to partial pyrolysis in sub-stoichiometric quantities of oxygen. This results
in the formation of producer gas, which is composed of 18% H2, 20% CO, 2% CH4, 12 % CO2 and rest
is N2. It has a mean calorific value of 4.7 MJ/Kg. The gas is then piped to a gas engine generator. The
electricity thus generated can then be transmitted to households, schools, and micro industrial units.
The gasifier systems developed and installed by TERI in Orissa (10 kw) and Uttaranchal (50 kw) are
fairly suitable for the typical village in Bihar. The plant developed by IISc offers excellent gasification
efficiency of over 80%. A 100% producer gas system is recommended against the dual fuel system.

Manpower requirements: Apart from the skilled persons required for the local energy survey,
construction and installation of the plant, manpower for repair and maintenance of the plant must be
made available at the local level. For this purpose, the formation of a Village Electricity Committee
(VEC) of four to five trained persons per plant is recommended, which can monitor the functioning of
the plant, and inform the manufacturer in case of any operational problems.

Requirement of agricultural residue: The proposed 60 kilowatt plant will use approximately 2,00,000
kg of biomass (rice husk, fuel wood, briquettes) per year. As the village may not be able to naturally
produce the large amount of agricultural residue needed, fuel forestry efforts will be required. Bihar
has a total of 48,000 hectares of cultivable wastelands. This area can be effectively used for fuel
forestry or for extending the cultivation of crops rich in biomass. Also, an effective system of inter
district transfers of biomass from surplus areas to deficit areas should be provided. Substantial efforts
on the part of the state government will be required to ensure the availability of the required amount of
biomass.

Economic viability: The following table shows the estimated cost of the plant, based on the rough
outline provided by the Ministry of New and Renewable Energy, New Delhi.

S.no. Items Estimated cost (Rs.)

A. FIXED COSTS
A.1 Biomass gasifier system with 100% producer gas engine 44,20,300
including all components and accessories including
maintenance contract. (60 kw)
A.2 Civil foundation and shed including storage for biomass and 5,00,000
water tank
Subtotal – A 49,20,300
B. VARIABLE COSTS
B.1 Cost of biomass @ Re. 1/kg, @ 1kg/KWH 2,00,000
B.2 Distribution line for 2.05 km @ Rs.1,50,000 per km 3,07,500
B.3 Service line @ Rs.1500 per household 5,08,500
B.3 Service line for non households (commercial and public 3,00,000
use)
Subtotal – B 13,16,000
C. CAPACITY BUILDING
C.1 Capacity building, training and awareness programmes 2,00,000
C.2 Social engineering and community mobilization 1,00,000
Subtotal – C 3,00,000
D. OPERATIONAL COSTS
D.1 Operation and maintenance charges per year 1,18,625
Subtotal – D 1,18,625
GRAND TOTAL [A+B+C+D] 66,54,925

Some organisations such as DESI Power India Ltd. have made efforts but the bleak scope for profits
due to low purchasing power of the people has deterred most private investors. Thus, the programme
will inevitably require significant subsidies. The Rajiv Gandhi Grameen Vidyutikaran Programme and
other schemes for rural electrification provide that the central government will grant 90% of the cost
for an approved project. The remaining 10% may be covered by the State Nodal Agency, village
panchayats or can be taken up by NGOs working on a no-profit-no-loss basis. The organisation bearing
10% stake will have to invest Rs.6,65,492.5 initially. This will cover installation expenses, maintenance
and operating expenses for one year. Of this, households will pay back Rs.1,57,921.37 (23.73%, taking
the basic minimum installation of CFLs and electric fans/power sockets), while the commercial units
pay another 9-10%. 33.17% of the cost will be recovered in the first year. The organisation can thus
aim at cost recovery within four years. With 339 households, the average small household (75-100
watts) will have to pay Rs.388 per year, while the larger households (150 watts) will have to pay Rs.
776 per year. This amount includes operation and maintenance charges (refer Table). Thus, for a
payment of less than Rs. 35 per month by small households, and less than Rs.65 per month by large
households, access to electricity can be made a reality for rural Bihar.

Several NGOs are involved in micro credit operations and have links with Self Help Groups (SHG).
Organisations which already have a significant presence in the villages can be encouraged to undertake
the electrification plan or to provide loans to village communities that wish to install the plants in a
cooperative manner. The existing SHGs can help in the formation of the Village Electricity
Committees. The accountability mechanism provided by the societal nature of SHGs can be used to
ensure timely payment of tariffs. The exact model for the maintenance and upkeep will depend on the
specific characteristics of each village and on the system configuration and maintenance contract
provided by the supplier/manufacturer of the plant.
 Hours of operation: The proposed plant will be operational 24 hours. The total capacity will be
5,25,600 KWH per year. Initially, the plant will be operating with surplus capacity. The provision of
electricity will facilitate economic activities and gradually, the number of micro industrial units will
increase. Workshops should be organised to guide the people to take up income generating activities
such as basket weaving, operating Dona patta machines etc. during night hours, thereby maximising the
utilization of power. Consequently, with the rising income and demand the problem of surplus capacity
will diminish. On the other hand, if the operational hours of the plant are limited to 6-8 hours, then the
short time for which electricity will be available will severely restrict the prospects of expanding the
total number of working hours. To ensure the full benefits, flexibility in usage is a must. 24 hour
operation is therefore recommended. For maintenance and upkeep, on a quarterly basis operation
should be halted for the duration of two to three hours. The villagers will have to bear the
inconvenience to ensure long term health of the system.

Social dimension of electrification through biomass:

The availability of electricity introduces an entire spectrum of new opportunities. These accrue at three
levels- individual level, household level and at the community level. For an individual, access to
electricity implies an extension of his capability. Lighting arrangement provides the option of extending
the number of hours that a person may choose to work, hence leading to an increase in earning
capacity. Also, several new occupations can be adopted if the basic resource of electricity is made
available. These include self employment opportunities such as setting up small shops, telephone
booths, operating photocopiers and fax machines; apart from facilitating the operation of flour mills,
small factories, agro processing and other micro enterprises. In order to access newer technologies such
as computer systems and the Internet, the availability of electricity is must. New technologies further
enhance income earning avenues for the people. This increased earning capacity in turn generates
greater income for the individual, the household, and also for the economy as a whole. For example, in
Baharbari, Bihar, the use of biomass for electricity generation (project launched by DESI Power India
Limited) has enabled farmers to grow three crops in a year. At the community level, electricity
generation through the proposed project provides an opportunity for greater cooperative action, as
members of the local community can take up the task of ensuring proper upkeep of the installed
system. Community participation in planning, installation of system, maintenance and tariff collection
will minimize the total cost of providing electricity. The suggested project will also have a significant
impact on the local environment, health and education of individuals.
Agriculture: The provision of electricity will bring about significant benefits for the agriculture sector.
The village community may install a computer system with internet facility. This will enable the
farmers to access information on new cropping methods, seed quality, correct fertilizer mix for
different crops, etc. Apart from providing connectivity to the village, electricity can thus help in making
specialized knowledge accessible to the workers of the primary sector, thereby enhancing their
productivity.

Environment: Biomass gasification offers an efficient, clean alternative to traditional methods of

heating (wood fires)and lighting (kerosene lamps). The reduction in green house gas (GHG) emissions
will directly improve the air quality, while the long term impact of reduced deforestation will ensure
greater stability in climatic conditions.

Health: The availability of electricity based cooling and heating systems offer better protection against
natural weather conditions. High temperatures during the summer months aggravates diseases such as
diarrhea and cholera. The installation of electric fans can provide great respite to households, especially
to infants and small children. Some assistance to poor households for the purchase of fans is
recommended. If clean technologies are used to replace traditional cooking fuels, women and children
in rural households will no longer be exposed to heavy indoor pollution on account of kitchen smoke,
which is a major cause of respiratory diseases. With the availability of electricity, Primary Health
Centres and other small clinics run by private practitioners can offer better service. These centres can
install a refrigerator for proper storage of medicines, life saving drugs, vaccines, syringes and other
devices. The extension of electricity coupled with the spread of technology to rural areas can help bring
technology based medical services such as X-raying within reach for the rural population.

Education: The availability of electricity adds to the school infrastructure and classroom environment,
thereby facilitating the provision of quality education. For individual students, electricity at homes will
enable them to devote greater time to studies. Also, given the expansion of economic opportunities that
rural electrification will bring about, the demand for higher education and vocational training is likely
to increase.

Concluding remarks:

The above analysis outlines the economic and social dimensions of rural electrification. The financial
hurdles faced in case of remote villages can be cured through subsidies and support to villages by
NGOs. As the provision of electricity has far reaching social and developmental impacts, the necessity
of embarking upon the proposed plan cannot be denied.

ruhisonal@gmail.com

References:

A. Special thanks to Mr. Jiwan Kumar Sinha, Director, and Mr.S.C.Sinha, Project Officer, Bihar
Renewable Energy Development Agency (BREDA) for their kindly assistance.

B. Books/magazines/journals:

1. Renewable Energy- Akshay Urja published by Ministry of New and Renewable Energy (various
issues).

2. Energy Survey Report of Urjagram Pokhraira in Mahua Block of Vaishali District by D.N.Singh
Associates Pvt. Ltd. sponsored by Bihar Renewable Energy Development Agency.

3. Energy Survey Report of Urjagram Parmanandpur Lal in Mahua Block of Vaishali District by
D.N.Singh Associates Pvt. Ltd. sponsored by Bihar Renewable Energy Development Agency.

4. Rural Energy Plan of Village Hasanpur, District Nawada by Society for Rural Industrialisation,
Ranchi, sponsored by Bihar Renewable Energy Development Agency.

C. Websites:

1. www.powermin.nic.in

2. http://gov.bih.nic.in

3. http://socialjustice.nic.in

4. http://nfhsindia.org

5. http://netv.org/india

6. www.teriin.org