BIOMASS India produces a huge quantity of biomass material in its agricultural, agro-industrial, and forestry operations.

According to some estimates, over 500 million tonnes of agricultural and agro-industrial residue alone is generated every year. The biomass materials that have been used for power generation in these projects include rice husk, cotton stalk, mustard stalk, Prosopis juliflora (Vilayati babul), poultry litter, bagasse, cane trash, etc. Typical capital costs for biomass power projects range from Rs 3 crores/MW to Rs 4 crores/MW. Advantages These projects can be designed to match the electric loads as biomass can be stored and used according to demand. Equipment for these projects is similar to that for coal-based thermal power projects and hence, no new technological developments are required. Due to their proximity to the rural areas, these projects are likely to improve quality of electricity supply there. A variety of biomass materials can be used in the same plant, providing flexibility of operations. Constraints in biomass power projects Availability of feedstock: Used for alternative purposes as cooking fuel, cattle feed & in industries for thermal applications Use of conventional fossil fuel in biomass based power projects: Due to volatility of biomass, biomass based power projects need to have multi fuel firing capability to accommodate both biomass and conventional fuel. Diminishes their value as clean electricity sources. Calorific value of biomass: due to fluctuation in biomass, there is variability in fuel calorific value, moisture content etc which affects power generation efficiency. Kinds of Technologies The prevalent technologies of power generation from biomass are : 1)The Thermo chemical processes The thermo chemical processes for conversion of biomass to useful products involve combustion, gasification or pyrolysis. a) Combustion: The most commonly used route is combustion. The advantage is that the technology used is similar to that of a thermal plant based on coal, except for the boiler. The cycle used is the conventional ranking cycle with biomass being burnt in high pressure boiler to generate steam and operating a turbine with generated steam. The net power cycle efficiencies that can be achieved are about 23-25%. The exhaust of the steam turbine can either be fully condensed to produce power, or used partly or fully for another useful heating activity. The latter mode is called cogeneration. In India, cogeneration route finds

application mainly in industries. b) Gasification: Instead of combustion, it is possible to convert the biomass into producer gas by gasification (partial combustion). Thermo-chemical gasification involves burning the biomass with insufficient air so that complete combustion doesnt occur, but a gaseous product is obtained. The producer gas is a mixture of carbon monoxide and hydrogen. Gasifiers are classified as updraft or downdraft depending on the direction of flow of the biomass and producer gas. India has significant experience in atmospheric gasifiers. c) Pyrolysis : Thermal decomposition of organic matter under vacuum or inert atmospheric conditions. d) Liquification process : Subjecting Biomass to high temperatures and pressures resulting in a large proportion of liquid as end products. 2) Biological conversion-The various processes under Biological Conversion are : Bio-Methanation : Biological treatment of industrial and municipal liquid waste streams under suitable Temperature resulting in release of methane gas. Ethanol Conversion : Ethanol used as a Fuel - Biological process of conversion of food plants to liquid fuel Ethanol. Biomass potential

Source : MNES annual report 03-04 Policy and Regulatory issues At Central level Capital subsidy for biomass projects.

Particulars
Biomass Power projects Biomass Power using Advanced Technologies

Subsidy
Rs 20 lakh X (C MW)^0.646 Rs. 1.0 crore X (C MW)^0.646 (source: MNES)

Fiscal Incentives for Biomass Power Generation Item Accelerated Depreciation Description 80% depreciation in the first year can be claimed for the following equipment required for co-generation systems: 1. Back pressure, pass-out, controlled extraction, extractioncum-condensing turbine for cogeneration with pressure boilers 2. Vapour absorption refrigeration systems 3. Organic rankine cycle power systems

4. Low inlet pressures small steam turbines Income Tax Holiday Ten years tax holidays.

Customs Duty

General Sales Tax Source: MNES

Concessional customs and excise duty exemption for machinery and components for initial setting up of projects. Exemption is available in certain States

Maharashtra state specific incentive for biomass projects

Tariff's announced by the State Electricity Regulatory Commissions (AS ON 30.09.2008) State Participation Wheeling Banking Buy Back Third Party Sale @Maharashtra** Pvt./Coop. 7% of Allowed Rs.3.05 per unit Allowed energy (Comm yr.) (Cogen) @ Rs.3.04 - 3.43 (13 yrs. ) @1% (biomass) Source:MNES ** SERC Policy announced

Other Incentives 50% cost of power evacuation line to be borne by MSEB.

Capital Subsidy : The capital subsidy from MNES, New Delhi is as follows: 1. Rs. 2.0 lakh / 300 kWth for thermal application. 2. Rs. 2.5 lakh / 100 kWe for electrical application through dual fuel engine. 3. The capital subsidy for biomass gasifier coupled with 100% producer gas engine in industry is as under

Rs. 10 lakh / 100 kWe for 100% producer gas engine with gasifier system. Rs. 8 lakh /100 kWe for 100% producer gas engine alone.(source-MEDA)

No.

Sources / Systems

I. Power From Renewables A. Grid-interactive 1. Biomass Power (Agro residues)

Achievements during 200910 (upto 31.10.2009)

Cumulative Achievements (upto 31.10.2009)

113.50 MW

816.50 MW

B. Off-Grid/Distributed Renewable Power (including Captive/CHP Plants) Biomass Power / Cogen.(non-bagasse) Biomass Gasifier 10.60 MW 2.91 MWeq. 181.37 MW 108.37 MWeq

State-wise list of commissioned and under implementation biomass power capacity, as on 31 March 2005 STATE-WISE/YEAR-WISE LIST OF COMMISSIONED BIOMASS POWER /CO-GENERATION PROJECTS (AS ON 30.11.2008) (In MW) upto 31.03.2003 160.05 11.00 0.50 4.00 109.38 0.00 24.50 22.00 0.00 106.00 46.50 381.30

S.No. 1 2 3 4 5 6 7 8 9 10 11

State Andhra Pradesh Chattisgarh Gujarat Haryana Karnataka Madhya Pradesh Maharashtra Punjab Rajasthan Tamil Nadu Uttar Pradesh Total

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Total 37.70 69.50 12.00 22.00 33.00 9.00 334.25 --16.50 85.80 33.50 9.88 156.10 ------0.50 -2.00 ----6.00 26.00 16.60 72.50 29.80 8.00 12.00 274.28 1.00 -----1.00 -11.50 -40.00 38.50 41.50 155.50 --6.00 ---28.00 7.80 -7.50 8.00 -8.00 31.30 44.50 22.50 -42.50 75.00 18.20 308.70 12.50 14.00 48.50 -79.00 172.00 372.50 129.50 136.10 163.00 228.10 266.00 270.50 1677.13