iStudies on Pollution Mitigation Volume I Air Quality Management
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Final Report onReview of Performance of the Grid- connected Biomass-based Power Plants Installed in India
August 2009
Prepared byDSCL ENERGY SERVICES COMPANY LTD6th Floor, Kanchenjunga 18 Barakhamba Road, New Delhi – 110001Tel 011 23316801, Fax 011 23319062
Submitted byMinistry of New and Renewable EnergyBlock no. 14, C.G.O. Complex Lodi Road, New Delhi - 110003
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
CONTENTS1 Executive Summary ......................................................................................................................................1 1.1 Competitive Usage of Biomass .....................................................................................................3 1.2 Economic Analysis .............................................................................................................................3 1.3 Cost of Transportation ......................................................................................................................3 1.4 Strategy for Direct Procurement of Fuel ....................................................................................4 1.5 Technical Feasibility for Co-firing .................................................................................................4 1.6 Appropriate Sizing of Power Plants for Sustainability ..........................................................4 1.7 Summary Recommendations ........................................................................................................5 1.8 Recommendations on Best Practices ..........................................................................................5 1.8.1 Policy and regulatory aspects ........................................................................................5 1.8.2 Plant and fuel related ........................................................................................................7 1.8.3 Project financing .................................................................................................................8
2 Detailed Report on Follow on Agenda (Post Meeting of 5 June 2009)......................................9 2.1 Use of Biomass and Economic Analysis of Alternative Usage of Biomass ................... 10 2.1.1 Rajasthan ............................................................................................................................ 10 2.1.2 Maharashtra ........................................................................................................................ 14 2.1.3 Chhattisgarh ....................................................................................................................... 16 2.1.4 Punjab ................................................................................................................................... 20 2.1.5 Summary conclusions ..................................................................................................... 23 2.2 Cost of Transportation of Biomass ............................................................................................ 24 2.2.1 Conclusions from the study .......................................................................................... 26 2.3 Strategy on Direct Procurement from Farmers/Innovative Fuel Linkages .................. 26 2.3.1 Setting up fuel collection centres ............................................................................... 26 2.3.2 Fuel–power barter system ............................................................................................. 27 2.3.3 Entering into partnership with local panchayats .................................................. 27 2.3.4 Establishing farmers’ biomass co-operatives .......................................................... 28 2.4 Technical Feasibility on Co-firing................................................................................................ 28 2.4.1 Situational analysis ........................................................................................................... 28 2.4.2 Issues involved with co-firing ....................................................................................... 31 2.4.3 Description of combustion technologies capable of co-firing ........................ 32 2.5 Policy on Fuel Linkage .................................................................................................................... 35 2.5.1 Defining the zone or catchment area for a power plant .................................... 35 2.5.2 Controlling the movement of biomass outside the catchment area of power plant ................................................................................... 36 2.6 Appropriate Sizing of Power Plant Considering Long-term Fuel Security and Sustainability .................................................................................................. 36 2.7 Related to Grid Particularly for Evacuation of Power, Grid Stabilization, Losses in T&D .......................................................................................................... 37 2.7.1 Recommendations on the issue .................................................................................. 37
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
3 Additional Submissions on Original Terms of Reference of the Assignment ....................... 39 3.1 Reporting Structure ........................................................................................................................ 40 3.1.1 Preparation of structured database ........................................................................... 40 3.1.2 Review, analysis, synthesis of data and information and their validation through field visits .................................................................... 40 3.1.3 Development of generic guidelines and technical recommendation reports ............................................................................................... 40 3.1.4 Development of strategy for better utilisation of biomass for grid-connected power generation and suggested amendments/modifications ......................................................................................... 41 3.2 Methodology Followed for the Study....................................................................................... 41 3.2.1 Field visit .............................................................................................................................. 41 3.2.2 Structured database ........................................................................................................ 42 3.2.3 Barrier analysis ................................................................................................................... 44 3.3 Recommendations .......................................................................................................................... 55 3.3.1 Policy and regulatory aspects ...................................................................................... 55 3.3.2 Technical (projects/products) deliverables ............................................................. 65 3.3.3 Project financing ............................................................................................................... 66 3.3.4 Sustainable biomass supply linkages ........................................................................ 67
LIST OF TABLESTable 1 Economic analysis of brick kilns in Rajasthan ................................................................. 12
Table 2 Consumption of biomass by Haath Bhatta (%) .............................................................. 13
Table 3 Economic analysis of brick kilns in Maharashtra ............................................................ 15
Table 4 Consumption of biomass by Haath Bhatta (%) .............................................................. 16
Table 5 Economic analysis of a cement plant when using biomass....................................... 17
Table 6 Economic analysis of brick kilns in Chhattisgarh ........................................................... 18
Table 7 Consumption of biomass by Haath Bhatta (%) .............................................................. 20
Table 8 Economic analysis of a cement plant when using biomass....................................... 20
Table 9 Economic analysis of brick kilns in Punjab ....................................................................... 22
Table 10 Distribution of biomass usage (%) ...................................................................................... 23
Table 11 Cost of transportation of biomass ...................................................................................... 25
Table 12 Cost of transportation of biomass – up to 15 km .......................................................... 25
Table 13 Cost of transportation of biomass: 15–50 km ................................................................. 25
Table 15 Transportation cost of biomass ............................................................................................ 26
Table 14 Cost of transportation of biomass: above 50 km ........................................................... 26
Table 16 Co-firing in various plants ...................................................................................................... 29
Table 17 Expected efficiency level for different types of biomass ............................................ 35
Table 18 Operation and maintenance issues of power plants ................................................... 38
Table 19 Transmission voltage and loss .............................................................................................. 38
Table 20 Details of biomass-based power plants ............................................................................ 45
Table 21 Structured database of power plants ................................................................................ 46
Table 22 Analysis of barriers related to policy and regulatory aspects ................................... 53
Table 23 Identification of ‘Best Practice’ .............................................................................................. 56
Table 24 Recommendations on policy and regulatory aspects ................................................. 64
Table 25 Optimal steam temperature and the best combustion technology for different types of biomass ....................................................................... 66
Table 26 Technologically experienced OEMs .................................................................................... 66
Table 27 Experienced OEMs for fuel handling system ................................................................... 66
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
LIST OF FIGURESFigure 1 Methodology for economic analysis of alternate use of biomass .............................. 11
Figure 2 Distribution of biomass usage in Rajasthan (%) ................................................................ 11
Figure 3 Distribution of biomass usage in Maharashtra (%) .......................................................... 14
Figure 4 Distribution of biomass usage in Chhattisgarh (%).......................................................... 17
Figure 5 Distribution of biomass usage in Punjab (%) ..................................................................... 21
Figure 6 Travelling grate combustion technology ............................................................................. 32
Figure 7 AFBC combustion technology ................................................................................................. 33
Figure 8 AFBC with bottom hopper ........................................................................................................ 34
Figure 9 Methodology followed for the study .................................................................................... 42
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
e x e c u t i v e s u m m a r y
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
The Ministry of New andRenewable Energy (MNRE), Government of India, has engaged DSCL Energy Services Co. Ltd (DSCLES) for carrying out a study on ‘Review of Performance of the Grid-Connected Biomass-Based Power Plants
Installed in India’ in the states of Chhattisgarh, Maharashtra, Punjab, and Rajasthan. The Terms of Reference (ToR) for the assignment were as listed below.1. Preparation of a structured database on fuel, plant operational performance,
policies, and regulatory aspects, and perceived performance of the state nodal agencies (SNAs)
2. Review, analysis, synthesis of data and information, and their validation through field visits
3. Development of generic guidelines and technical recommendations4. Development of strategy for better utilization of biomass for grid-connected
power generation considering existing and suggested amendments/modifica-tions in policy measures
As part of the study, eight plants were visited for the purpose of data collection and discussions with promoters and stakeholders involved in biomass supply system. Additional visits were made to interact with the SNAs.
Similar and related studies were made by other consultants engaged by MNRE for other states and also related studies in other areas.
All consultants, including DSCLES, had made a presentation on the interim findings and project progress in a meeting held at MNRE on 5 June 2009, which was chaired by the Secretary, MNRE.
During the presentations and subsequent deliberations, several ideas emerged for further analysis of the situations, considering the following key points:
Benefit to the farmers should be the prime consideration and one must see how �best this can be interlinked with biomass power developmentOverall value addition by the available biomass to the economy �Environmental benefit �Sustainability of different activities �
Accordingly, the consultants were advised to carry out a more detailed study on the competitive use of biomass. The ToR, as listed below, for this detailed study was developed. 1. Economic analysis of competitive use of biomass2. Cost of transportation3. Strategy for direct procurement of biomass from farmers4. Technical feasibility of co-firing5. Appropriate sizing of power plant for sustainability
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Executive Summary
Supplementary field visits were undertaken to collect more exhaustive data on competitive usage and evaluate the technology of the plants for co-firing. Observa-tions and recommendations in brief are outlined in the following sections. (Details are provided in Section 2 of this report.)
1.1 Competitive Usage of Biomass Fodder accounts for over 50% (44%–64%) of the usage and this would have to �remain so from farmers’ perspectives.About 5%–10% is used as domestic fuel. By encouraging use of energy-efficient �stoves, some savings can be generated.5%–18% is used in biomass power plants, including those in the neighbouring �areas.3%–25% is used in other industries such as oil mills, paper mills, captive in rice �mills, cement plants, and conventional power plants.Brick kilns use only 2%–3%. This is a major finding as brick kilns were earlier �thought of as consuming large quantities of biomass. Except � for Chhattisgarh, the diversion to export from the zones ranges from 3% to 17%. Some action at the policy level can prevent this from happening.Wastage due to loss in collection/field burning is high in Punjab (at 12.5%), �whereas in Maharashtra it is nil.
1.2 Economic Analysis Both brick kilns and cement mills can offer higher price by as much as 25% con- �sidering coal price parity.However, consumption by these industries is not significant and as such does �not appear to be posing a threat to biomass-based power plants.Oil mills can offer much higher price. In fact, here they have the opportunity of �realising higher value by installing mini cogeneration power plants and export-ing a small quantity of power to the grid. This would provide the highest value realisation from biomass. Price parity should be governed by coal price parity. �Tariff for biomass power should, therefore, be directly linked to coal price. �
1.3 Cost of Transportation Transportation cost Value (Rs/T) Fuel cost at depot (Rs/T) Contribution (%)
Up to 15 km 150 1700 8
Up to 35 km 250 1700 13
Up to 50 km 383 1700 18
Above 50 km 428 1700 20
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
From the above table, it is clear that the economics of power plant operation is sig-nificantly affected by the transportation cost. From a practical perspective, this cost should be managed within 10% of the overall fuel cost. This means the collection zone should not exceed 15 km. Even if the command area is more, managing this cost is possible by setting up collection centres at the fringes.
1.4 Strategy for Direct Procurement of Fuel As already presented in the meeting of 5 June 2009, the strategy adopted by Malwa Power is focused on direct procurement and, therefore, can be replicated.Other ideas that can be pursued are listed below.
Opening of collection centres � (This is already being practised by Malwa Power.)Fuel power barter system � (It may be possible to cover villages close to the project sites by guaranteeing 24-hour power supply linked to fuel supply for the power plant.)Partnership with local panchayats � (By offering equity stakes to panchayats in the power plant.)Developing farmer fuel co-operative � (Co-operatives of farmers already exist in most of the states. These cooperatives can be encouraged to take up fuel supply as business and they should be provided investment support for mecha-nised fuel collection systems and logistics.)
These ideas have to be developed further and tested as pilots in some projects.
1.5 Technical Feasibility for Co-firing Most of the boilers are based on either travelling grate or atmospheric fluidised bed combustion (AFBC) technologies. Both these technologies can support co-firing up to 20%. However, for co-firing on continuous basis, additional investment has to be made on fuel handling and feeding system.
1.6 Appropriate Sizing of Power Plants for Sustainability
Analysis of operation of the eight power plants makes the following interesting revelations:
Plants that use fuel up to 10% of the overall available biomass are operating at �over 80% plant load factor (PLF).Plants in Chhattisgarh that use over 15% available biomass are facing �problems.From delivered cost perspective, if the collection distance is maintained at less �than 15 km, the overall financial performance would be good.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
It is, therefore, recommended that plant sizes are made location-specific based on maxi-mum biomass drawal up to 10%. This may lead to sizes ranging from 5 to 8 MW in states like Haryana and Rajasthan and 8 to 12 MW in Punjab. However, all such projects must include fuel management strategy considering all the points mentioned above in the detailed project report.
1.7 Summary Recommendations About 65%–75% of the available biomass would continue to be used by farm- �ers for fodder and fuel. Consumption as fuel can be reduced by promoting energy-efficient stoves. This can significantly improve the surplus availability of biomass.Considerable amount of fuel gets lost due to poor harvesting and collection �process. Thus, more efforts need to be made in improving technology in this area. Financial incentives may be considered for investment in mechanisation and R&D in this area.Tariff for biomass-based projects has to be linked to coal; in fact, it has to be �higher than coal due to the need for higher level of investment in logistics and also inherent limitations on achievable efficiency level.Projects should be based on maximum drawl of 10% of available biomass in �an area of diameter 30 km and reservation provided for 30 km spatial distance between two adjacent plants. In areas with leaner agricultural density, size may range from 5 to 7 MW whereas in resource-rich states, this may go up to 12 MW.Smaller industries such as oil mills and mini paper mills should be encouraged �to install grid-connected cogeneration power plants to improve economic val-ue addition from biomass.All future biomass assessment study should follow this methodology for com- �petitive analysis before making recommendation on project capacity.
1.8 Recommendations on Best Practices Summary recommendations on best practices as per TOR of the assignment is given in the following tables.
1.8.1 Policy and regulatory aspects
Issue Best practice/recommendations Followed in the state of
Project initiation: SNA and /or Developer
Project initiation by SNA Maharashtra
Single window clear-ance and empowered committee for project appraisal
No single window clearance and committee for project appraisal
Mahar-ashtra and Chhattisgarh
Executive Summary
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Issue Best practice/recommendations Followed in the state of
Deemed clearance in case of delay from SNA/Other approving organization
No deemed clearance Maharashtra, Chhattisgarh, and Rajasthan
Final criteria for selec-tion of party
Selection based on first-come first-served basis
Maharashtra
Who bears the cost of power evacuation system
50% refund through the SNA (100% refund of cost of power evacuation is proposed to be refunded in the latest revision of policy)
Maharashtra
Ensure faster project development after allotment
Refundable commitment fee of Rs 500,000 per MW, six months is provided for getting clearance extendable for genuine reasons and a final deadline of two years from allotment, failing which the project gets cancelled
Maharashtra
Consumption of fossil fuel
As this is a state-specific issue and the actual plants are close to and within the specified limits, all the four states are having the best practice
All four states
Monitoring fossil fuel consumption and renewable purchase obligation (RPO) compliance
The format followed by the Maharashtra Energy Development Agency (MEDA) covers the quantities and cost (including break-up) to help monitor fossil fuel consumption, cost at a plant level, and RPO compliance at a state level.
Maharashtra
Annual escalation of variable part tariff
No best practice found. Recommended third-party survey to estimate the market price of biomass, track annual growth in price, and GCV of biomass – MNRE/SNA
-
Biomass fuel price considered for tariff determination
No best practice found. Recommended third-party survey to estimate the market price of biomass, track annual growth in price, and GCV of biomass – MNRE/SNA
-
GCV of biomass considered for tariff determination
No best practice found. Recommended third party survey to estimate the market price of biomass, track annual growth in price & GCV of biomass – MNRE/SNA
-
RPO RPO declared for more than 5 years along with minimum (for consumption purpose) and maximum (for contracting purpose)
Maharashtra
Allowance of open access
If the developer wants open access and financial assistance for power evacuation, he is allowed to sell power through open access, but within the state. If the developer wants open access without financial assistance for power evacuation, he is allowed to sell power through open access even beyond the state boundary. All decisions to be taken before PPA is signed and in the beginning
Maharashtra
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Issue Best practice/recommendations Followed in the state of
Catchment area Catchment area is clearly defined as 40 km Rajasthan
1.8.2 Plant and fuel related
Issue Findings/RecommendationsSelection of process parameters for different fuels / fuel mix
Selection of process parameters for different fuels / fuel mix
Sourcing of plant With a view to improve technical performance of the higher effiency projects and plants, as far as possible established vendors should be used. New vendors can be encouraged only after technology has been stabilised. Some of the recommended vendors for different sections of the plants are listed below.
Fuel collection and densification including baling •-Import technology/machinery from Germany, Netherlands, and JapanFuel handling - Kwality Engineers, Bevcon Wayors, •Concept Engineers, Masyc Projects, and Enviro AbrasionBoilers - Thermax, IJT, and Cether Vessel•Turbo Generator (TG) Sets - Shin Nippon, Bharat •Heavy Electricals Ltd, and Siemens for all capacities and Triveni for capacities less than 10 MW Electrostatic precipitator - Alstom/Thermax•
Executive Summary
S. No. Biomass Optimal Steam Temperature (Deg C)
Best Combustion Technology
1 Mustard Residue
460 - 470 Bottom Hopper AFBC Boiler
2 Paddy Straw 450 - 460 Travelling Grate
3 Rice husk 495 - 500 AFBC
4 Cotton Residue 460 - 470 Bottom Hopper AFBC Boiler
5 Soyabean Residue
460 - 470 Bottom Hopper AFBC Boiler
6 Ground Nut Residue
460 - 470 Bottom Hopper AFBC Boiler
7 Bagasse 500 - 540 Travelling Grate
8 Wood Chips 500 - 540 AFBC
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
1.8.3 Project financing
Issue Findings/RecommendationsProject financing guidebook
For reducing transaction-related problems faced by developers in dealing with financial institutions (FIs), it is recommended that MNRE may prepare a guideline docu-ments on the following:
Investment norm – hard and soft costs•Different types of financing options available from dif-•ferent sourcesAvailable financial and fiscal supports including •subsidiesEquity financing opportunities•Carbon financing•Processes and procedures adopted by different FIs•
Steering committee MNRE may also set up a financial facilitating commit-tee with members from RE financing FIs like IREDA, REC, PFC to periodically review progress of projects pending financing approval and assist in reducing time required for financial approval.
detailed report on follow-on agenda (post meeting of 5 june 2009)
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
The following action agenda was identified during the presentation at MNRE on 5 June 2009.
Competitive use of biomass and economic analysis of alternative usage of �biomassCost of transportation of biomass �Strategy on direct procurement from farmers/Innovative fuel logistics �Technical feasibility of co-firing �Uniform policy on fuel linkage �Appropriate sizing of power plant considering long-term fuel security and �sustainabilityStudy in issues related to grid particularly for evacuation of power, grid stabili- �zation, losses in transmission and distribution (T&D)
2.1 Competitive Use of Biomass and Economic Analysis of Alternative Usage of Biomass
To perform economic analysis of alternative usage of biomass, Chhattisgarh, Mahar-ashtra, Punjab, and Rajasthan were visited and information on various parameters such as crop area, crop production, internal consumption of biomass by farmers and villagers, industrial biomass consumption, export/import of biomass in the catchment area and biomass price was collected. In addition, other process indus-tries such as brick kilns and cement plants were visited to collect information on cost of production, biomass cost, profitability, etc. The collected data was analysed and percentage distribution of biomass usage in each state was established. The profitability of brick kiln was compared with profitability of biomass-based power plant. In the case of cement plants, profitability difference was evaluated when us-ing biomass in place of coal and maximum biomass price, which plants can afford to pay in parity with coal price. Figure 1 shows the methodology followed by the DSCLES team for economic analysis.
The state-wise analysis of competitive usage of biomass is given below.
2.1.1 Rajasthan
Figure 2 shows the percentage distribution of biomass usage in Rajasthan. The sali-ent features of the study are given below.
About 60% is used as animal fodder. �About 11% is consumed as domestic fuel. �Biomass power plants (Suryachambal Power Plant Ltd, Kota and Amrit Environ- �mental Technologies Private Limited [AETPL], Kotputli) consume only 4.6%.Oil mills and brick kilns consume 6.9% and 3.4%, respectively. �About 2% is exported outside the catchment area and 4.6% is left in the fields to �decompose or burnt in the fields.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Detailed Report on Follow-on Agenda
Figure 1 Methodology for economic analysis of alternate use of biomass
Figure 2 Distribution of biomass usage in Rajasthan (%)Source DSCLES Field Visit
Visit Chhattisgarh, Maharashtra, Punjab, and Rajasthan and conduct
biomass assessment.
Collect data on crop area, crop production, internal consumption of biomass by farmers and villagers, industrial
biomass consumption, export/import of biomass in the catchment area, biomass price, etc.
Analysis of data for process industries such as brick kiln and cement plant; Compare
profitability with power plant, maximum price that units can pay for biomass,
percentage of total biomass consumption by brick kilns
Analysis of data for percentage distribution
of biomass usage in each state for various categories such as fodder, domestic fuel, mulching, thatching, consumption in process plants such as oil mills, cement, paper, biomass-based power plants, net
import/export of biomass from catchment area.
Table 1 shows the economic analysis of the brick kilns in Rajasthan. The analysis has been performed for Haath Bhattas and Chimney Bhattas. Haath Bhattas can use only biomass or biomass with coal while Chimney Bhattas can use only coal or coal with biomass. The profitability of Chimney Bhatta is about 25% higher than Haath Bhat-ta. The quality of brick is also superior in Chimney Bhatta as compared with Haath Bhatta. The profit in Chimney Bhatta is Rs. 6.4/kg while the profit in power plants in
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Rajasthan is Rs 0.2–0.25 /kg.1 This indicates that profitability of Chimney Bhattas is much higher than that of biomass-based power plant and consequently, Bhattas can afford to pay higher price for biomass than biomass-based power plant.
Table 1 Economic analysis of brick kilns in RajasthanHaath Bhatta Chimney Bhatta
Name of the unit B K Brick Company, Devli, Dist Tonk, Rajasthan
Monthly production of bricks (no.)
120,000–200,000 500,000–800,000
No. of brick kilns in Devli Tehsil (no.)
8 9
Various inputs in brick
Mass balance for brick manufacture
Earth (kg) 3 3
River sand (kg) 1 1
Total (kg) 4 4
No. of bricks per acre (1 acre × 1 ft)
220,000 220,000
How long they operate in the land
As long as good earth is available
As long as good earth is available
After the closure of kiln what happens to the land
Left fallow for 1–2 years; after that the land can be used for agriculture
Left fallow for 1–2 years; after that the land can be used for agriculture
Various types of fuel used by brick kilns
1 Coal and mustard husk can be used
Coal with mustard husk can be used
2 Mustard husk and wood can be used
Coal alone can be used
3 Coal, mustard husk, and wood can be used
Fuel quantity used for making 1000 bricks
Mustard husk (kg) 75 50
Coal (kg) 70 100
Wood (kg) 80 –
Equivalent mustard husk (kg) 242 159
Mustard husk (Rs/1000 kcal) 0.63 0.63
Coal (Rs/1000 kcal) 1.14 1.14
Wood (Rs/1000 kcal) 0.44 –
Transportation cost Included in above cost Included in above cost
Source Traders Traders
Cost of raw material (sand, clay, lime, etc.) (Rs/1000 bricks)
380 380
Cost of labour (Rs/1000 bricks) 300 300
1 Source: Field visit & Financial Model-DSCLES
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 1 Contd...Haath Bhatta Chimney Bhatta
Cost of fuel used (Rs/1000 bricks)
558 500
Total manufacturing cost (Rs/1000 bricks)
1238 1180
Energy cost as percentage of total manufacturing cost (%)
45.07 42.37
Selling rate by brick kiln (Rs/1000 bricks)
2000 2200
Market rate (Rs/1000 bricks) 2800 3000
Profit (Rs/1000 bricks) 762 1020
Profit in mustard residue (Rs/kg) 3.2 6.4
Profitability difference (%) 25.29
Area/dump coal/biomass coming from (Source)
Coal coming from Bihar and Chhattisgarh, Mustard husk and wood through local traders
Other used of ash Ash either flies away or used for land filling
Problems faced Labour comes in groups so sometimes problem is faced
General Information
Bhatta location Can be erected where leased land is taken
Site is fixed
Period of operation per year Six months per year depending on labour
Quality of bricks Quality of bricks is better in Chimney Bhatta
Initial investment (Rs) Rs 1.6–2.0 lakh Rs 24–26 lakh
Source DSCLES Field Visit
In Chimney Bhatta, if only coal had been used, the profitability would have been reduced by about 8%. In comparison with coal prices, brick kilns can afford to pay about 83% higher price than existing biomass prices.
Table 2 shows that Haath Bhattas consume 2.18% of the total biomass generated in Devli tehsil, Rajasthan. As overall consumption of biomass by brick kiln is low, brick kilns do not pose any major concern for the power plant.
Table 2 Consumption of biomass by Haath Bhatta (%)Particulars Details
Consumption per 1000 bricks by Haath Bhatta (kg) 75
Monthly production of bricks (no.) 120,000
Total biomass consumption per year per Bhatta (MT) 108
No. of Bhattas in Devli Tehsil 8
Total biomass consumption per year by all Bhattas (MT) 864
Biomass generation in Devli Tehsil (MT) 39,645
Consumption of total biomass by Haath Bhatta (%) 2.18
Detailed Report on Follow-on Agenda
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
2.1.2 Maharashtra
Figure 3 shows the percentage distribution of biomass usage in Maharashtra. The salient features of the study are given below.
About 44% of the total biomass generated is used as animal fodder. �About 9% is consumed as domestic fuel. �Biomass power plants (Rake Power Ltd, Nagpur and Shalivahana Projects Ltd., �Yavatmal) consume only 8.6%.Oil mills and brick kilns consume about 20% and 1.79%, respectively. �About 10% is exported outside the catchment area. �
Figure 3 Distribution of biomass usage in Maharashtra (%)Source DSCLES Field Visit
Table 3 shows the economic analysis of the brick kilns in Maharashtra. The analysis has been performed for Haath Bhattas and Chimney Bhattas. Haath Bhattas can use coal and/or biomass while Chimney Bhattas use only coal. Profitability of Chimney Bhatta is about 26% higher than Haath Bhatta. The quality of brick is also superior in Chimney Bhatta as compared with Haath Bhatta. The profit in Haath Bhatta is Rs 3.1/kg while the profit in power plant in Maharashtra is Rs 0.15–0.20 /kg.2 This indicates that the profitability of Haath Bhattas is much higher than that of a biomass-based power plant and consequently, Bhattas can afford to pay higher price for biomass than biomass-based power plants.
In comparison with coal prices, brick kilns can afford to pay about 24% higher price than the existing biomass prices.
Table 4 shows that the Haath Bhattas consume about 4% of total biomass genera-tion in Nagpur. As the overall consumption of biomass by brick kilns is low, brick kilns do not pose any major concern for the power plant.
2 Source: Field Visit and Financial Model of DSCLES
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 3 Economic analysis of brick kilns in Maharashtra Haath Bhatta Chimney Bhatta
Name of the unit and address Krisk Bricks, Owner: Mr Sri Niwas, Village Mansar, Taluk Ramtek, Nagpur
Shakti Bricks, Owner: Mr Neezami, VillageMansar, Taluk Ramtek, Nagpur
Monthly production 150,000 750,000
No. of units in Nagpur About 130 About 25 (Fixed concrete chimney wala) and 75 (Metal chimney wala)
Cost of various inputs in brick
Mass balance for brick manufacture
Sand (Earth) (kg) 2 2
River sand (kg) 1 1
Total (kg) 3 3
No. of bricks per acre (1 acre × 1 ft)
300,000 300,000
How long they operate in the land
As long as good earth is available As long as good earth is available
After the closure of kiln what happens to the land
Paddy crop or fishing Paddy crop or fishing
Fuel quantity used for making 1000 bricks
Rice husk (kg) 85
Coal (kg) 75 150
Wood (kg) 85
Total equivalent rice husk (kg) 265
Various types of fuel used by brick kilns
1 Coal and rice husk can be used or Only coal can be used
2 Rice husk and wood can be used or
3 Rice husk alone can be used or
4 Coal, rice husk, and wood can be used
Cost of fuels, source of purchasers, and biomass transport cost
Rice husk (Rs/1000 kcal) 0.72 –
Coal (Rs/1000 kcal) 0.89 0.89
Wood (Rs/1000 kcal) 0.44 –
Source Coal, rice husk, and wood through traders
Through traders (nearby mines -Kamptee)
Transportation Included Included
Cost of raw material (Rs /1000 bricks)
300 300
Cost of labour (Rs /1000 bricks)
300 300
Table 3 contd...
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Table 3 Contd... Haath Bhatta Chimney Bhatta
Cost of fuel used (Rs /1000 bricks)
570 480
Total manufacturing cost (Rs /1000 bricks)
1170 1080
Energy cost as percentage of the total manufacturing cost (%)
48.72 44.44
Selling rate (Rs /1000 bricks) 2000 2200
Market rate (Rs /1000 bricks) 2800 3000
Profit per 1000 bricks (Rs /1000 bricks)
830 1120
Profitability difference (%) 26
Profit per kilogram of rice husk (Rs/kg)
3.13 Only coal can be used
Ash disposal Whatever little bit ash either it flies away or used for landfilling
Problems faced Labour problem related to productivity
Bhatta location Can be erected where leased land is available
Bhatta kiln site is fixed
Source DSCLES Field Visit
Table 4 Consumption of biomass by Haath Bhatta (%)Particulars Details
Consumption of biomass per 1000 bricks by Haath Bhatta (kg) 85
Monthly production of bricks (no.) 150,000
Total biomass consumption per year per Bhatta (MT) 153
No. of Bhattas in Nagpur District 130
Total biomass consumption per year by all Bhattas (MT) 19,890
Biomass generation in Nagpur District (MT) 506,147
Biomass consumption by Bhattas (%) 4
Table 5 shows the economic analysis of the cement plant using biomass as an al-ternative fuel to coal. It can be seen from Table 8 that profitability of cement plant is higher by around 3.0% in Maharashtra when using biomass in place of coal. As compared with coal prices, cement plant can afford to pay around 20% higher price than existing biomass prices.
2.1.3 Chhattisgarh
Figure 4 shows the percentage distribution of biomass usage in Chhattisgarh. The salient features of the study are given below.
About 64% of the total biomass is consumed as animal fodder. �About 7.7% is consumed for mulching and thatching. �
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 5 Economic analysis of a cement plant when using biomassSpecific details of the cement plant
Detail Grasim Cement, Maharashtra
Data
Process Dry process
Fuel consumption 800 kcal/kg
Fuel used Coal/Biomass
Impact on quality if biomass used No problem
Profitability calculation
Detail Coal Biomass
Fuel consumption /MT of cement (MT/MT) 0.23 0.25
Fuel cost/MT of cement (Rs/MT) 457 375
Calorific value (kcal/kg) 3500 3200
Landed cost (Rs/MT) 2000 1500
Cost of cement manufactured (Rs/MT) 1000 920
Fuel cost as percentage of manufacturing cost (%) 45.71 40.76
Selling price of cement (Rs/MT) 3600 3600
Profit (Rs/MT) 2600 2680
Profitability difference (%) 3.08
Maximum price of biomass that plants can pay in comparison to coal (Rs/MT)
1830
Source DSCLES Field Visit
Figure 4 Distribution of biomass usage in Chhattisgarh (%)Source DSCLES Field Visit
Biomass power plants in the region consume about 18.4%. �About 5% is imported from Ambikapur and the surrounding area at the rate of �Rs 1600–2300 per MT.
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Table 6 shows the economic analysis of the brick kilns in Chhattisgarh. The analysis has been performed for Haath Bhattas and Chimney Bhattas. Haath Bhattas can use coal and/or biomass while Chimney Bhattas use only coal. Profitability of Chimney Bhatta is about 22% higher than Haath Bhatta. The quality of brick is also superior in Chimney Bhatta as compared with Haath Bhatta. The profit in Haath Bhatta is Rs 3.3/kg of biomass while the profit in power plants is Rs 0.20–0.22/kg.3 This indicates that the profitability of Haath Bhattas is much higher than that of biomass-based power plants and consequently, Bhattas can afford to pay a higher price for biomass than biomass-based power plants.
3 Source: Field Visit & Financial Model-DSCLES
Table 6 Economic analysis of brick kilns in ChhattisgarhHaath Bhatta Chimney Bhatta
Name of the unit Mr B Bhurva, Village Temar, Tehsil Raipur
Mrs L C Bhavani Village Sarona, Tehsil Raipur
Monthly production 150,000 750,000
Cost of various inputs in brick
Mass balance for brick manufacture
Sand (Earth) (kg) 2 2
River sand (kg) 1 1
Total (kg) 3 3
No. of bricks per acre (1 acre × 1 ft) 300,000 300,000
How long they operate in the land As long as good earth is available
As long as good earth is available
After the closure of kiln what happens to the land
Paddy crop or fishing Paddy crop or fishing
Cost of raw material (Rs /1000 bricks) 300 300
Haath Bhatta Chimney Bhatta
Cost of labour (Rs /1000 bricks) 280 280
Cost of fuel used (Rs /1000 bricks) 541 450
Total manufacturing cost (Rs /1000 bricks)
1121 1030
Energy Cost as percentage of of the total manufacturing cost (%)
48.26 43.69
Selling rate by brick kiln (Rs /1000 bricks)
2000 2150
Market rate (Rs /1000 bricks) 2700 3000
Profit for brick kiln (Rs /1000 bricks) 879 1120
Profit per kg rice husk (Rs) 3.3
Profitability difference (%) 21.52
Table 6 contd...
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
In comparison with coal prices, brick kilns can afford to pay around 30% higher price than existing biomass prices.
Haath Bhattas consume about 12% rice husk generation in Raipur District (Table 7). It can be inferred from Table 7 that as the consumption of rice husk in brick kiln is low, brick kilns are not a major cause of concern for power plants.
Table 6 Contd...Haath Bhatta Chimney Bhatta
Various types of fuel used by brick kilns
1 Coal and rice husk can be used or Coal of C, D, and F grades only
2 Rice husk + wood can be used or
3 Rice husk alone can be used or
4 Coal, rice husk, and wood can be used
Fuel quantity used for making 1000 bricks
Rice husk (kg) 85
Coal (kg) 75 150
Wood (kg) 85
Equivalent rice husk (kg) 263
Cost of fuels, source of purchasers, and biomass transport cost
Rice husk (Rs/1000 kcal) 0.66
Coal (Rs/1000 kcal) 0.86 0.86
Wood (Rs/1000 kcal) 0.44
Transportation cost (Included in above cost)
Source Coal, rice husk, and wood through traders
Through traders (from Korba Mines)
Ash utilization Whatever little bit ash, either it flies away or used for filling
Problems faced Labour problem
Bhatta location Can be erected where leased land is taken
Bhatta kiln site is fixed
Period of operation per year Six months per year depending on labour
No. of brick kilns in Raipur District
About 180 Haath Bhattas About 30 Fixed concrete chimney wala and 70 Metal chimney wala
Brick kiln efficiency As compared with Chimney Bhatta, the efficiency of Haath Bhatta is less
Quality of bricks The quality of bricks is better in Chimney Bhatta
Initial investment (Rs) 1.8–2.0 lakh 24–25 lakh
Source DSCLES Field Visit
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Table 7 Consumption of biomass by Haath Bhatta (%)Particulars Details
Consumption of biomass per 1000 bricks by Haath Bhatta (kg) 85
Monthly production of bricks 150,000
Total biomass consumption per year per Bhatta (MT) 153
No. of Bhattas in Raipur District 180
Total biomass consumption per year by all Bhattas (MT) 27,540
Biomass generation in Raipur District (MT) 235,200
Use of biomass by Haath Bhattas (%) 12%
Table 8 shows the economic analysis of a cement plant using biomass as alternative fuel to coal. It can be seen from Table 8 that the profitability of the cement plant is higher by about 3.7% in Chhattisgarh when using biomass in place of coal. As com-pared with coal prices, cement plants can afford to pay about 28% higher price than existing biomass prices.
Table 8 Economic analysis of a cement plant when using biomassSpecific details of the cement plant
Detail Lafarge Cement, Chhattisgarh
Process Dry Process
Fuel consumption 780 kcal/kg
Fuel used Coal/Biomass
Impact on quality if biomass is used No problem
Profitability calculation
Detail Coal Biomass
Fuel consumption /MT of cement (MT/MT) 0.22 0.24
Fuel Cost/ MT of cement (Rs/MT) 541.67 425.45
Calorific value (kcal/kg) 3600 3300
Landed cost (Rs/MT) 2500 1800
Cost of cement manufactured (Rs/MT) 1100 1000
Fuel cost as percentage of manufacturing cost (%) 49.24 42.55
Selling price of cement (Rs/MT) 3800 3800
Profit (Rs/MT) 2700 2800
Profitability difference (%) 3.70
Maximum price of biomass that plants can pay in comparison to coal (Rs/MT)
2290
Source DSCLES Field Survey
2.1.4 Punjab
Figure 5 shows the percentage distribution of biomass usage in Punjab. The salient features of the study are given below.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Figure 5 Distribution of biomass usage in Punjab (%)Source DSCLES Field Visit
About 57% of total biomass generated is consumed as animal fodder in the �state. Biomass power plants in the region consume about 5.6% of the total biomass �consumption.About 17% is exported outside the catchment area. �About 12.5% of total biomass is left on the fields because of low density of fuel �and lack of proper mechanical equipment to collect and transport the biomass resulting in low collection efficiency.
Table 9 shows the economic analysis of the brick kilns in Punjab. In Punjab, only Chimney Bhattas are available. Chimney Bhattas use coal, waste tyres, and old bat-tery shells. No biomass (rice husk) is being utilised by kilns as biomass cost is high (Rs 4000–5000/MT).
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Table 9 Economic analysis of brick kilns in PunjabType of Bhatta Haath
BhattaChimney Bhatta
Name of the unit and address Are not operated in Punjab
T R Brick Company, P.O. Majeetha, Dist. Amritsar
Monthly production 800,000 bricks
No. of units in Dist. Amritsar About 70
Parameters
Mass balance for brick manufacturer
Sand (Earth) (kg) 3.5
River sand (kg) 0
Total (kg) 3.5
No. of bricks per acre (1 acre × 1 ft) 300,000
How long they operate in the land As long as good earth is available
After the closure of kiln what happens to the land Agriculture or fishing
Various Types of Fuel used by Brick Kilns
Coal can be used
Coal + waste tyres + old battery shells can be used
Fuel quantity used for making 1000 bricks
Biomass (kg) 0
Coal (kg) 100
Waste tyres + Old battery shells (kg) 100
Equivalent coal (kg) 200
Cost of fuels and source of purchasers biomass transport cost
Biomass (Rs/MT) 3500–3800
Coal (Rs/MT) 7500–8000
Waste tyres + Old battery shells (Rs/MT) 4500–5000
Transportation cost (Rs/MT) Included in above cost
Cost of raw material (sand, clay, lime, etc.) (Rs/1000 bricks)
500
Cost of labour (Rs/1000 bricks) 840
Cost of fuel used (Rs/1000 bricks) 1150
Total manufacturing cost (Rs/1000 bricks) 2490
Energy cost as percentage of total manufacturing cost (%)
46.18
Selling rate of brick kiln ((Rs/1000 bricks) 3100
Selling rate traders in market (Rs/1000 bricks) 3500
Profit (Rs/1000 bricks) 610
Profit per kg of coal (Rs) 3.1
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 9 Contd...Type of Bhatta Haath
BhattaChimney Bhatta
Area / Dump coal/ Biomass coming from (Source) Coal from Bihar and Chhattisgarh through local traders
Ash utilisation Ash either flies away or used for land filling
Source: DSCLES Field Visit
2.1.5 Conclusions
Table 10 shows the distribution of biomass usage in Rajasthan, Chhattisgarh, Ma-harashtra, and Punjab in terms of percentage.
Table 10 Distribution of biomass usage (%)Particulars Rajasthan (%) Chhattisgarh(%) Maharashtra(%) Punjab (%)
Animal fodder 60.0 64.0 44.2 56
Power plant 4.5 18.4 8.4 5.6
Oil mills 6.9 0.9 20.0 –
Net export/(import) 2.3 (5.1) 10.4 17.0
Left in the field 4.5 – – 12.5
Table 10 shows that animal fodder accounts for 44%–64% of the total biomass �usage in different states. As usage of biomass as animal fodder returns maxi-mum economic yield, biomass usage for animal fodder should be accounted for in the internal consumption of biomass.From Table 10, it is clear that optimal power generation capacity of the power �plant in the region corresponds to 4%–8% of the total biomass generation in the region. In Chhattisgarh, the installed power generation capacity is oversized as there is net import of about 5% biomass from the surrounding region. The generation capacity should be decided at 4%–8% of the total biomass genera-tion in the region considering the fact that with industrialisation and infrastruc-ture development of the state, biomass consumption by industrial units and local industries will increase. This strategy will ensure long-term biomass supply to the power plants.As oil mills in Rajasthan and Maharashtra consume biomass as high as 6.9% and �20%, respectively, MNRE can devise a new promotional scheme for the imple-mentation of mini-cogeneration in oil mills.In Rajasthan and Punjab, biomass is left in the fields because of the difficulty �involved in the collection and transportation of low-density biomass. To over-come this hurdle, mechanical equipment such as cutter and baler can be used to improve the collection efficiency of biomass.
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The profit per kilogram of biomass is much higher in brick kilns than that of bio- �mass-based power plant. As profitability in bricks kilns is much higher, they can afford to pay higher prices for the biomass. This will result in higher earnings for the farmers. As Chimney Bhattas are more efficient and profitable than Haath Bhattas, Haath Bhattas (consuming biomass) can be banned in these states. In Rajasthan, Maharashtra, and Chhattisgarh, as the consumption of total bio- �mass by brick kilns is low (in the range of 2%–12%), brick kilns pose no major cause of concern for the biomass-based power plants.As far as cement plants are concerned, their profitability improves by about 3% if �they use biomass in place of coal. Also, in parity with coal prices, these units can afford to pay 20%–25% higher price on biomass than the existing market price.While deciding the biomass cost in tariff calculation, state electricity regulatory �commissions (SERCs) should consider the cost of biomass in parity with existing coal prices. As the profitability of process plants is higher as compared with that of biomass-based power plants, they can afford to pay higher prices for biomass as it is a cheaper alternative to coal. If an SERC considers biomass price in parity with coal prices, power plants will also be in a position to pay a high price for bi-omass. Eventually, the cost advantage to industrial units such as cement plants when they switch the fuel from coal to biomass will no longer be available and it will reduce the consumption of biomass by process plants.
2.2 Cost of Transportation of Biomass Table 11 shows the cost of transportation of biomass for different biomass-based power plants. It can be seen that transportation cost accounts for 9%–14% of the net cost of biomass at boiler inlet.
The cost of transportation of biomass to the plant is calculated for the following spatial distances around the plant site.
Spatial distance less than 15 km: � If the spatial distance is less than 15 km, farmers will bring biomass at the factory gate in tractor-driven trolleys.
Table 12 shows the cost of transportation of biomass for spatial distance less than 15 km.
Spatial distance of 15–50 km: � In this case, farmers will bring biomass at the nearest collection centre or to the nearest dealer by tractor driven trolleys. The power plant has to arrange for transportation of biomass from the collection centre or the dealer.
Table 13 shows the cost of transportation of biomass for a spatial distance of 15–50 km.Spatial distance greater than 50 km: � In this case, biomass will be transported to the factory gate by trucks. Table 14 shows the cost of transportation.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 11 Cost of transportation of biomassParameters Surya
Chambal Power Ltd
Malwa Power Pvt. Ltd
Vandana Vidyut Ltd
NRI Power & Steel Ltd
Sudha Agro & Chemicals Ltd
Neeraj Power Plant Pvt. Ltd
Rake Power Ltd
Shalivahana Projects Ltd
Cost of biomass at farmer’s/trader’s end (Rs/MT)
850–2000
1500 1900–2100
1600–1800
1600–1800
1600–1800
1900–1950
1720–1770
Cost of transporta-tion of biomass (Rs/MT)
200 250 300 300 300 300 200 200
Cost of biomass handling in factory (Rs/MT)
300 100 100 100 100 100 100 80
Net cost of biomass at boiler inlet (Rs/MT)
1350–2500
1850 2000–2200
2000–2200
2000–2200
2000–2200
2200–2250
2000–2050
Transporta-tion cost as percentage of net cost of biomass (%)
10.53 13.51 14.29 14.29 14.29 14.29 8.99 9.88
Source: DSCLES Field Visit
Table 12 Cost of transportation of biomass – up to 15 kmParameter Value
Capacity of trolley (Qt) 30
Transportation charges for 10–15 km (Rs) 450
Transportation cost per tonne (Rs) 150
Table 13 Cost of transportation of biomass: 15–50 kmParameter Value
Capacity of trolley (Qt) 30
Transportation charges for 10–15 km up to the collection centre (Rs) 450
Transportation cost up to the collection centre (Rs/T) 150
Transportation charges for 30–50 km from the collection centre to the power plant for 30 Qt (Rs)
700
Transportation charges for 30–50 km from the collection centre to power plant (Rs/T) 233
Total transportation cost (Rs/T) 383
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2.2.1 Conclusions from the study
Table 15 summarises the transportation cost of biomass.Cost of transportation is directly proportional to the distance from the power �plant.Thus, in order to keep the cost of transportation low, power plants should en- �courage farmers to bring biomass directly to the factory gate or bring biomass to the nearest collection centre.The location of plant site should be selected in such a way that the required �quantity of biomass should be available within the spatial distance of 40–50 km otherwise the transportation cost of biomass will become high leading to increase in landed fuel cost.
Table 15 Transportation cost of biomassTransportation Cost
Value (Rs/tonne)
Fuel cost at depot (Rs/tonne)
Contribution (%)
Up to 15 km 150 1700 8
Up to 35 km 250 1700 13
Up to 50 km 383 1700 18
Above 50 km 428 1700 20
2.3 Strategy on Direct Procurement from Farmers/ Innovative Fuel Linkages
In order to reduce the landed cost of biomass and to achieve long-term fuel avail-ability, power plants have to devise the strategies to procure fuel directly from the farmers. The following strategies are suggested to procure biomass directly from the farmers.
2.3.1 Setting up fuel collection centres
Opening biomass collection centres in areas with high crop production ensures availability of good quality biomass in the cropping season. Collection centres along with weighing bridge can be established in leased land and farmers will be paid in cash against delivery of biomass to the collection centres. Long-term relationship can be maintained with villagers by opening health centre, schools, etc.
Table 14 Cost of transportation of biomass: above 50 kmParameter Value
Capacity of truck (T) 7
Transportation charges for 50–80 km (Rs) 3000
Transportation cost per tonne (Rs/T) 428
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Disadvantages of the model:Large area of land will be required for storage of biomass. Normally, the land is �taken on lease basis. The initial capital outlay in setting up the collection centre is high as the follow- �ing equipment are required:
Weigh bridge yFuel processing equipment such as chipper machine yTractors with trolleys for transport of biomass yDozer for handling of biomass yBalers to increase fuel density, if required. y
The above equipment can be taken on rent. Also, the operation of the collection centre can be outsourced to a local contractor against fixed payment rate for deliv-ery of biomass to the plant.
2.3.2 Fuel–power barter system
Under this barter system, farmers will supply biomass to the power plant free of cost and the power plant will supply electrical energy free of cost to farmers, equivalent to calculated quantity of biomass delivered by the farmers. The electrical energy will be pumped into the state grid by the power plant. The local discoms (distribu-tion companies) will be instructed to supply pre-determined electrical units to the farmers free of cost. This model will ensure supply of biomass to the power plant as it creates a win-win situation for all the stakeholders involved. The main focus areas for development of the participatory model are as listed below.
Continuous power supply to the designated villages �Supply of generated ash, which is rich in micro nutrient, free to the fuel �suppliersMaintaining transparent accounting system for fuel supply by the farmers (ben- �eficiaries) to the power plant and the quantum of supply of power and ash by the plant to the farmersDevelopment of a net billing mechanism by which utilities charge the farmers �for excess consumption (beyond their entitlement) under fuel-linked mecha-nism and pay to the power plant for the units drawn by the utility from the plant after adjusting for the entitled quantity under the barter scheme.Adequately sizing the plant to meet the export obligation to the maximum pos- �sible extent.
2.3.3 Entering into partnership with local panchayats
Entering into partnership or agreement with local panchayats will ensure long-term biomass supply to the power plant. The cutting, collection, processing (chipping),
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
and transportation of biomass will be done by local villagers under the supervision of panchayats.
The panchayat would be encouraged to take equity investment in the project and would be supplied equity energy equivalent. The panchayat would manage a ru-ral energy supply business (RESCO) based on the equity energy received from the project. The panchayat would also supply biomass to the project as per a fuel supply agreement and can get either cash payment for the same or more free energy for the RESCO. This free energy would be sold to local households and small industries in the villages. This model has the potential of transforming the economic develop-ment of the area around the power plant due to multiple benefits as listed below.
Improved availability of power (24/7) �Income from sale of agro residue �Employment for fuel logistics �Employment in plant operation �Development of a number of associated economic activities such as small in- �dustry and entertainment centresIndirect benefits would include social development, particularly in the areas of �education, water supply, hygiene and medical care, etc.
2.3.4 Establishing farmers’ biomass co-operatives
Establishing farmers’ biomass co-operatives would have its benefits, as cited below.
Developing confidence amongst farmers on payment security and timely �disposalEvenly managed collection over the period of procurement �Improving the harvesting and logistics technologies by supporting investment �in mechanisationReducing biomass wastage �Prevention of local pollution due to field burning �
Farmers’ co-operatives already exist in most of the states. It should be possible to develop and implement the model with support from state governments.
2.4 Technical Feasibility on Co-firing
2.4.1 Situational analysis
Table 16 shows co-firing in various plants visited by DSCLES.
It is clear from the Table 16 that all plants are using multi-fuel technology and are capable of co-firing. The plants are using either travelling grate or bottom hopper AFBC or AFBC boiler for multi-fuel combustion.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Tab
le 1
6 C
o-fi
rin
g in
var
iou
s pl
ants
Par
amet
erS
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt. L
tdV
and
ana
Vid
yut
Ltd
NR
I P
ower
an
d S
teel
L
td
Su
dha
Agr
o an
d C
hem
ical
s L
td
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Cap
acit
y (M
W)
7.5
7.5
7.7
7.5
107.
510
10
Ste
am p
ress
ure
(a
ta)
6865
6866
6867
6666
Ste
am
tem
pera
ture
(°C
)45
046
549
548
548
550
048
048
0
Bio
mas
s –M
ajor
Mu
star
d r
esid
ue
Cot
ton
sti
cks
Ric
e hu
skR
ice
husk
Ric
e hu
skR
ice
husk
Ric
e hu
sk,
Soy
a hu
sk,
Whe
at s
traw
Ric
e hu
sk,
Bag
asse
Bio
mas
s -
Min
or
Gro
un
dn
ut
resi
du
e,
Soy
abea
n
resi
du
e, J
ulie
fl
ora
Mu
star
d r
esid
ue,
Whe
at
stra
w, S
arka
nd
a, W
ood
tr
imm
ings
D
e-oi
led
ca
ke, S
aw
du
st
Cot
ton
sti
ck,
Saw
du
st,
Woo
d c
hips
Cot
ton
st
ick,
Whe
at
stra
w, C
hilly
st
icks
, Soy
a hu
sk, J
ulie
fl
ora,
Tre
e tr
imm
ings
, B
ambo
o hu
sk
Com
bust
ion
te
chn
olog
yT
rave
llin
g gr
ate
Bot
tom
hop
per
anae
robi
c fl
uid
ized
-bed
com
bust
ion
(A
FB
C)
AF
BC
AF
BC
AF
BC
AF
BC
AF
BC
AF
BC
Tabl
e 16
con
td..
.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Tab
le 1
6 C
ontd
...
Par
amet
erS
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt. L
tdV
and
ana
Vid
yut
Ltd
NR
I P
ower
an
d S
teel
L
td
Su
dha
Agr
o an
d C
hem
ical
s L
td
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Co-
firi
ng
fuel
co
mbi
nat
ion
sM
ust
ard
res
idu
e (9
5%)
+ S
oya
husk
(5%
)
a) M
ust
ard
hu
sk (
25%
) +
R
ice
husk
(20
%)
+ C
otto
n
stic
ks (
50%
) +
Fir
e w
ood
tr
imm
ing
(5%
) b)
Whe
at s
traw
(70
%)
+
Cot
ton
sti
cks
(10
%)
+
Mu
star
d h
usk
(10
%)
+
Sar
kan
da
(10%
)
Ric
e hu
sk (
80
%–8
5%)
+
Coa
l (10
%–
15%
)
Ric
e hu
sk (
80%
–85%
) +
C
oal (
15%
–20%
) +
Saw
d
ust
(2%
) +
De-
oile
d c
akes
(1
%)
(Saw
du
st a
nd
de-
oile
d
cake
is u
sed
whe
n e
ver
avai
labl
e.)
Ric
e hu
sk
(80%
–82%
) +
Coa
l (15
%)
+ W
aste
of
rice
bra
n
from
ow
n
un
it (
3%)
+
De-
oile
d c
ake
(1%
) +
Saw
d
ust
(0.
5%)
Ric
e hu
sk
(80%
–85%
) +
Coa
l (1
5%–2
0%)
Whe
at s
traw
(3
0%–3
5%)
+ S
oya
du
st
(40%
) +
C
otto
n s
talk
(1
0% +
Ric
e hu
sk (
10%
+
Woo
d c
hips
an
d S
aw d
ust
(2
%)
+ C
oal
(5%
–10
%)
Ric
e hu
sk
(50%
) +
C
otto
n s
talk
(1
5%)
+
Julie
flor
a (5
%) W
heat
st
raw
(0.
5%)
+ C
hilly
sta
lk
(0.2
5%)
+ C
oal
(30%
–40%
)
Sou
rce:
DS
CL
ES
Fie
ld V
isit
31
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Co-firing, which is defined as simultaneous combustion of different fuels in the same boiler, provides the following advantages for biomass-based power plants.
As different fuels can be combusted simultaneously, it helps in achieving high �capacity utilisation and high PLF.If coal is being combusted along with biomass, it leads to higher combustion �temperature, improves combustion efficiency, lower excess air, and improves cycle efficiency.
The advantages if biomass is co-fired in the existing fossil fuel-based power plants are listed below.
Environmental benefits: Reduction of greenhouse gas emissions and toxic gas- �es such as carbon dioxide, carbon monoxide, sulphur dioxide, nitrous oxides, and particulate matter. Investment requirement is low: Only necessary modifications are required. �Flexible operation: Original plant can operate still at 100% load with fossil fuel. �Co-firing facility is less sensitive to seasonality in biomass production and to biomass availability and price.Carrot for development of biomass markets: Many European countries have �proved that promoting co-firing would help develop biomass markets as well as create expertise on biomass handling and combustion.4
2.4.2 Issues involved with co-firing
The challenges that co-firing poses to boiler operation mostly originate from fuel properties. The differences in characteristics of coal and biomass can be summa-rised as below.5
Pyrolysis starts earlier for biomass fuels compared with coal fuels. �The volatile matter content of biomass is higher compared with that of coal. �The fractional heat contribution by volatile substances in biomass is approxi- �mately 70% as compared with 30%–40% in coal.The specific heating value of volatiles in kJ per kg is lower for biomass fuels as �compared with coal fuel as they have high moisture content.Biomass char has more oxygen as compared with coal and it is more porous and �reactive.Biomass fuels have ash that is more alkaline in nature, which may aggravate the �fouling problems. In biomass fuels, the inorganic compounds are in the form of salts or bound �in the organic matter. However, in peat, for example, the inorganic matter is bound mostly in silicates, which are more stable at elevated temperatures.Biomass fuels can be high in chlorine, but typically have low nitrogen, sulphur, �and ash content.
4 Source: http://en.wikipedia.org/wiki/Co-firing5 Source: www.ec.europa.eu/energy/renewables/co-firing
Detailed Report on Follow-on Agenda
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
The handling and flow properties of biofuels are usually poor because of parti- �cle size variation and low density resulting in expensive and complicated fuel handling system.
2.4.3 Description of combustion technologies capable of co-firing
Travelling Grate �In travelling grate spreader stoker designs, the entire bottom of the furnace is a slow moving platform or conveyor forming the grate. The grate is cooled by air fed from under the grate. In this way, the grate mechanism and its cooling system define the maximum acceptable air temperature under the grate, which, correspondingly, defines the moisture content of the fuel that can be burned. Water-cooled walls could be used to prevent slag formation adjacent to the stoker. Fuel is fed from a pneumatic spreader stoker system located on the front of the furnace. In this way, smaller, dryer fuel particles are burnt in suspension, while the larger particles fall in a thin layer on the moving grate. As the ash is continuously discharged, the fuel has to burn at a uniform rate and at a sufficient speed.
Figure 6 Travelling grate combustion technologySource www.thermax.com
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Advantages1. Up to 5%–10% coal can be combusted along with biomass in travelling grate
boiler without any major design modification. With increase in percentage of coal above 10%, the chances of clinker formation increases.
2. Capable of co-firing one biomass with another biomass, e.g. mustard residue with groundnut shell.
3. Multi-fuel firing capacity (bagasse, coal, lignite, rice husk, cotton stalk, bagasse pith, wood chips, cane trash, and other biomass)
4. High efficiency features Large grate area, tall furnace, and high residence time yGrit refiring system yGenerously sized heat recovery system yLow excess air y
5. Lower auxiliary power consumption Single pass boiler bank design yLow excess air y
Atmospheric fluidised-bed combustion �Atmospheric fluidised-bed combustion (AFBC) boilers offer efficient, cost-effective, and reliable steam generation. In fluidised-bed systems, the combustion air from below the boiler has such a high speed that the fuel becomes a seething mass of particles and bubbles. Carbon burnout efficiency is high in fluidised-bed systems. Another important advantage is the possibility to control NOx creation by low com-bustion temperatures and to minimise SOx creation in the case of fossil fuel co-fir-ing. The AFBC technology promises to provide a viable alternative to conventional coal-fired and other solid fuel-fired boilers.
Figure 7 AFBC combustion technologySource www.thermax.com
Detailed Report on Follow-on Agenda
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Advantages1. Can combust around 15%–30% coal along with biomass. The coal is being fed
underbed while biomass is being fed overbed. Above 30% coal, the fluidisation of bed becomes difficult.
2. Capable of co-firing fuels such as coal with biomass and one biomass with an-other such as rice husk with wood chips. Suitable for cogeneration and captive power, multi-fuel firing, underbed/overbed fuel feeding options
3. High efficiency featuresLarge freeboard height leading to high residence time y
4. Lower auxiliary power consumptionSingle pass boiler bank design yLow excess air y
5. Other featuresSectionalised bed for high turndown yOptimum fluidising velocity and staged combustion y
AFBC with bottom hopper �Bottom hopper AFBC is similar to conventional AFBC design except that there is no distribution plate at the bottom. The bottom of the furnace is open and there is a hopper beneath the furnace in which the ash drops after combustion of fuel. As there are no ash drains in this technology, it is far easier and quick to remove ash from the bed. As a result, fuels that are difficult to burn such as wheat straw, washery rejects, and pet coke can be burnt easily in this type of boiler. The design of boiler reduces the chances of clinker formation.
Figure 8 AFBC with bottom hopperSource www.thermax.com
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Advantages1. Capable of co-firing fuels such as cotton sticks with mustard residue, cotton
sticks with wheat straw, and cotton sticks with paddy straw2. Can combust fuels that are difficult to burn such as washery rejects and pet
coke3. Minimum unburnt fuel4. Reduced carbon monoxide emissions and improved efficiency
Table 17 shows the most efficient combustion technology for different types of bio-mass with expected efficiency level.
Table 17 Expected efficiency level for different types of biomassType of biomass Efficient combustion technology Expected
efficiency (%)
Mustard residue Bottom hopper anerobic fluidised-bed combustion (AFBC) 80–81
Paddy straw Travelling grate 70–77
Rice husk AFBC 80–81
Bagasse Travelling grate 70–71
Cotton stick Bottom hopper AFBC 80–81
Groundnut shell Bottom hopper AFBC 80–81
Source: DSCLES Databank
2.5 Policy on Fuel LinkageIn order to achieve long-term fuel security for biomass-based power plants, it is necessary to develop a uniform policy on fuel linkage. Some of the policy measures suggested are given below.
2.5.1 Defining the zone or catchment area for a power plant
In order to achieve long-term fuel availability, the catchment area or biomass collec-tion zone for a power plant should be well defined prior to allotment of any project. In Rajasthan, the catchment area of 40 km is defined and no other power plant can be installed within 40 km spatial distance from the existing or allotted power plant site. In Punjab, the whole tehsil is defined as the catchment area while in Chhattis-garh and Maharashtra, there is no well-defined catchment area policy. As discussed in Section 1.2 (‘Transportation cost of biomass’), the transportation cost of biomass becomes high above 40 km distance. Thus, the catchment area for power plants should be kept under the 40 km radius. Thus, the catchment area between 35 and 40 km should be defined for any power plant at the time of allocation of the project and no new power plant should be allowed within 35–40 km spatial distance of the existing or the proposed power plant.
Detailed Report on Follow-on Agenda
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
2.5.2 Controlling the movement of biomass outside the catchment
area of power plant
The export of biomass outside the catchment area is a major cause of concern for any power plant as it directly reduces the long-term fuel security. To reduce or con-trol the movement of biomass outside the catchment area, the following policy measures are suggested.
Providing subsidy to the plant to purchase fuel procurement equipment and provid- �ing government land to open collection centres in the catchment area: The repre-sentatives of the plant will go to the villages and educate the farmers about the earning opportunity by selling the biomass. The farmers will be motivated to bring biomass to the collection centres where they will be paid in cash against the delivery. Local people can be employed in the logistics of biomass. In this way, villagers can be motivated to the biomass to the power plant. As collection cen-tres require large area,government land can be provided on lease to such centres. The fuel logistics require huge capital for purchase of equipment such as cutters, trucks, tractors, balers, chippers, and weighing bridge. Fuel logistics is an impor-tant area of any successful power plant operation as it directly affects the PLF and profitability of the plant. Providing capital subsidy will encourage plants to open collection centres and help in achieving sustainable long-term fuel supply.Biomass prices in parity with coal prices � : While deciding the biomass cost in tariff calculation, SERCs should consider the cost of biomass in parity with existing coal prices. As the profitability of process plants is higher as compared with bi-omass-based power plants, they pay higher price for biomass as it is a cheaper alternative to coal. If SERC considers biomass price in parity with coal prices, power plants will also be in a position to pay high prices for biomass. Eventually, the cost advantage to industrial units such as cement plants when they switch the fuel from coal to biomass will no longer be available and it will reduce the consumption of biomass by process plants.Encouraging plants to enter into partnership with local panchayats � : This issue has been discussed above.Encouraging development of farmers’ biomass co-operatives � : Discussed earlier in the report.
2.6 Appropriate Sizing of Power Plant Considering Long-term Fuel Security and Sustainability
Biomass assessment methodology needs to improve to more accurately determine various aspects like biomass generation, usage by the farmers, wastages in collec-tion, and available surplus. This study has helped develop a methodology for com-petitive economic analysis for use of surplus biomass. The present study is based on a few sample plants and as such statistically not adequate to justify recommenda-tion of this methodology as a standard tool.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
The study has highlighted the need for further development of biomass assess-ment methodology. One definite conclusion, however, has been made. If the plant is configured to use maximum 10% of the available biomass and the transportation cost is about 10% of the overall fuel cost, the operation has been found satisfactory. These two factors have, therefore, been recommended for use as a generic guide-line for determining the capacity of a plant.
On the basis of DSCLES experience, the following capacities can be considered as general guidelines:
5–8 MW in areas with single cropping practice �Maximum 12 MW in areas that are agriculturally rich �
2.7 Related to Grid Particularly for Evacuation of Power, Grid Stabilisation, Losses in T&D
Table 18 shows the operation and maintenance (O&M) issues faced by biomass-based power plants in different states. It can be inferred that tripping of power plants on account of non-availability of grid is an issue of concern for all the power plants. The reason attributed to the problem is rostering of power as per the utility’s rostering programme, load shedding, shut down/maintenance of utility’s network, and unscheduled tripping on account of poor maintenance/operation practices at their end. Tripping also takes place in the night due to over-voltages appearing on the transmission line network.
Table 19 shows the transmission line voltage and the loss of biomass-based power plants in different states. Most of the plants are having transmission line voltage of 33 kV and transmission losses are in the range of 0.5%–1.0%. On account of low transmission voltage (less than 132 kV), the frequency of plant tripping is high.
2.7.1 Recommendations on the issue
Switch over to higher voltage transmission (132 kV and above) to improve sys- �tem stability, reduce pilferage and thefts to a sizeable extent, and lessen the occurrence of trippings and breakdowns. Also, the availability of the grid is high because higher voltage network is not subjected to rostering, etc. Opt for higher transmission voltage to reduce T&D losses. �Select the location of a plant as close as possible to the grid sub-station to re- �duce transmission line capital expenditure and transmission losses.
Detailed Report on Follow-on Agenda
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Table18 Operation and maintenance issues of power plantsParameter Surya
Chambal Power Ltd
Malwa Power Pvt. Ltd
Vandana Vidyut Ltd
NRI Power and Steel Ltd
Sudha Agro and Chemicals Ltd
Neeraj Power Plant Pvt. Ltd
Rake Power Ltd
Shalivahana Projects Ltd
Non-availability of manpower
X X X X X X X X
Ash fusion √ √ X X X X X X
Superheater corrosion
√ √ X X X X X X
Fuel handling and feeding problem
√ X X X X X X X
Boiler bed coil failure
X X X X √ X X X
TG Overhaul/ Repair
X X X X X X X X
Tripping due to non-availability of grid
√ √ √ √ √ √ √ √
No. of trippings per month
8–10 10–15 10–15 20–25 15–20 15–20 5–10 100–150
Source: DSCLES Field Visit
Table 19 Transmission voltage and lossName of the plant Metering point Transmission
voltage (kV)Transmission loss (%)
Malwa Power Pvt. Ltd In plant 66 0.5–1.0
Rake Power Ltd In plant 33 0.5–1.0
Shalivahana Projects Ltd In plant 33 0.5–1.0
Vandana Vidhyut Ltd Grid Sub. Station 33 0.5–1.0
NRI Power and Steel Ltd Grid Sub. Station 33 0.5–1.0
Sudha Agro Oils and Chemicals Ltd Grid Sub. Station 33 0.5–1.0
Neeraj Power (Pvt.) Ltd Grid Sub. Station 33 0.5–1.0
Source: DSCLES Field Visit
a d d i t i o n a l s u b m i s s i o n s o n o r i g i n a l t e r m s o f r e f e r e n c e
o f t h e a s s i g n m e n t
3
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
3.1 Reporting Structure
3.1.1 Preparation of structured database
Fuel and plant �Biomass availability assessment including competitive use of biomass for ydifferent activities and price structure Current practices for managing biomass logistics including innovative ypractices Assessment of cost of biomass as fired yProblem in availability of biomass and usage of fossil fuel yPrice structure of fossil fuel and biomass yCompetitive usage of biomass in the potential states y
Power plant promoters, projects, and operational performance including bio- �mass usage, O&M, PPA conditionsPerceptions of promoters on state and regulatory policies �Policy and regulatory aspects �
Existing fiscal and financial incentives by MNRE state policy/guidelines and yprocedures for clearances/NOCs /approvalsState monitoring mechanism for usage of fossil fuels yState policy support/incentives yStatus of open access and power trading y
3.1.2 Review, analysis, synthesis of data and information and their
validation through field visits
Barrier analysis �Policy and regulatory framework y
Local, social, and environmental impacts �Technical yProject financing ySustainable biomass fuel linkage y
Comparative evaluation of policies and practices �Policy and regulatory support including incentives in different states yFuel usage by different plants yMonitoring mechanism practised by different SNAs yFuel procurement practices by different plants y
Review of innovative model developed by any plant for fuel procurement �
3.1.3. Development of generic guidelines and technical
recommendation reports
Recommendations report on barrier removal �
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Additional Submissions on Original Terms of Reference of the Assignment
Policy and regulatory framework yTechnical yProject financing ySustainable biomass fuel linkage y
Fuel assessment methodology and plant capacity configuration �Defining the command/catchment area yAvailability of sites/locations for setting up 5/10 MW units y
State-level policy guidelines �Suggested amendments in the notifications/guidelines y
3.1.4 Development of strategy for better utilization of biomass
for grid-connected power generation and suggested
amendments/modifications
Fiscal and financial incentives from central and state governments �Regulatory purchase obligations �Preferential tariff �Market tariff and open access �
3.2 Methodology Followed for the StudyFigure 9 shows the methodology that was followed for the study.
3.2.1 Field visit
The following biomass-based power plants were visited and data were collected, compiled, and analysed.
Malwa Power Pvt. Ltd, Muktasar, Punjab �Surya Chambal Power Ltd, Kota, Rajasthan �Vandana Vidyut Ltd, Bilaspur, Chhattisgarh �NRI Power and Steel Ltd, Bilaspur, Chhattisgarh �Sudha Agro and Chemicals Ltd, Bilaspur, Chhattisgarh �Neeraj Power Plant Pvt. Ltd, Raipur, Chhattisgarh �Rake Power Ltd, Nagpur, Maharashtra �Shalivahana Projects Ltd, Yavatmal, Maharashtra �
The following SNAs were visited and various issues, policies, and regulations relat-ed to biomass-based power generation were collected, compiled, compared, and analysed.
Punjab Energy Development Authority �Rajasthan Renewable Energy Corporation Ltd �Chhattisgarh Renewable Energy Development Authority �Maharashtra Energy Development Authority �
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Figure 9 Methodology followed for the study
3.2.2 Structured database
Policy and regulatory aspects �
Sl no. Item (unit) Maharashtra Punjab Chhattisgarh Rajasthan
1 Cumulative capacity of commissioned projects (MW)
95 7.5 167.49 46.3
2 Potential of biomass power projects (MW)
1781 3145 303.83 1000
3 Conversion of potential into projects (%)
5.33 0.24 55.13 4.63
4 No. of projects commissioned 9 1 20 5
5 No. of projects in pipeline 21 30 12 7
6 Who initiates project identification? (SNA or Developer)
SNA SNA and Developer
Developer Developer
7 Whether single window clearance present? (Yes/No)
No Yes No Yes
8 Whether Committee for project appraisal present in SNA? (Yes/No)
No Yes No Yes
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Sl no. Item (unit) Maharashtra Punjab Chhattisgarh Rajasthan
9 What is the timeline mentioned for clearance of project under single window mechanism (Days)
Not applicable
60 Not applicable
30
10 Whether deemed clearance is allowed in case of delay from SNA/other approving organization? (Yes/No)
No Yes No No
11 Whether any facilitation/service charges are levied on the project developer by SNA for getting all the approvals? (Yes/No)
No Yes No No
12 Clarity and transparency in bid evaluation/licensee selection mechanism ( High/Low/ Not Applicable)
Low High Low Low
13 Energy allocation in kind for development of SNA? (Yes/No)
No Yes No No
14 Who bears the cost of the power evacuation system? (State government or Developer)
State government and Developer
Developer Developer Developer
15 Any assistance in availing CDM benefit from the SNA? (Yes/No)
No Yes No No
16 Whether penalty present for slow performance after allotment of project? (Yes/No)
Yes No No Yes
17 Whether consumption of fossil fuel allowed? (Yes/No)
Yes No Yes Yes
18 No. of formats collected from biomass power plant?
4 0 1 3
19 What is the comment of SNA on the promptness of reply from power plant owners? (Poor/Good/Not applicable)
Poor Not applicable
Poor Poor
20 When was the latest policy promulgated? (Year)
2008 2006 2001 2004
21 Is the tariff for biomass power pre-determined? (Yes/No)
Yes Yes Yes Yes
22 Tariff determined for how many years
13 Life of the plant
10 20
23 Is the tariff for biomass power defined as single part or two part?
Two part Single part
Two part Single part and two part
24 What is the tariff for biomass power (water-cooled compressors) in 2009/10? (Rs/kWh)
4.28 4.04 3.14 4.53
25 What is the tariff for biomass power (air-cooled compressors) in 2009/10? (Rs/kWh)
Not defined Not defined
Not defined 4.95
Additional Submissions on Original Terms of Reference of the Assignment
44
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Sl no. Item (unit) Maharashtra Punjab Chhattisgarh Rajasthan
26 What is the annual escalation of variable part tariff? (%)
5 5 5 5
27 Biomass fuel price considered for tariff determination (Rs/tonne)
2045 Not defined
1085 1216
28 GCV of biomass considered for tariff determination (kcal/kg)
3300 Not defined
3300 3400
29 Is banking of power allowed? (Yes/No)
Yes Yes Yes Yes
30 What is the period within which banking clause has to be availed? (Months)
12 12 3 1
31 What are charges for banking? (%) Nil Nil 2 UI rate
32 Renewable purchase obligation declared for how many years
4 5 3 6
33 Is RPO defined for biomass power exclusively? (Yes/No)
No No Yes Yes
34 RPO for biomass power/RE power in 2009/10 (%)
6 2 5 1.45–2.95
35 Is open access allowed after first PPA lifetime? (Yes/No)
Yes No No Yes
36 Is there any option for faster realization of revenue from SEB/licensee? (Yes/No/Case to case)
No Yes Yes Case to case
37 Any awards to SNA for the development of biomass power? (Yes/No)
Yes No No No
Snapshot of plant survey �Table 20 provides details of biomass-based power plants visited by DSCLES.
Fuel and plant �Table 21 shows the structured database of biomass-based power plants visited by DSCLES.
3.2.3 Barrier analysis
Policy and regulatory aspects �Table 22 analyses the barriers with respect to policy and regulatory aspects.
Technical (projects/products) deliverables �Improper selection of process parameters for different fuels/fuel mix y : In many plants, improper selection of process parameters leads to low efficiency or poor performance of plants in terms of PLF. For example, in the case of Malwa Power Plant, the initial design steam outlet temperature was 480 °C.
45
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 20 Details of biomass-based power plantsPlant Capacity
(MW)Configuration (Bar /°C)
Combustion technology
Plant load factor (2008/09) (%)
Fuel used - biomass
Coal(Tonnes)
Biomass (%)
Surya 7.5 68/450 Travelling grate
89 Mustard residue - 80,000 T
0 100
Malwa 7.5 67/465 Bottom hopper AFBC
90 Cotton sticks - 80,000 T
0 100
Sudha 10.0 68/485 AFBC 80 Rice husk-85,000 T
24,000 78
NRI 7.5 66/485 AFBC 90 Rice husk-58,000 T
14,600 80
Neeraj 7.5 67/500 AFBC 85 Rice husk -55,845 T
13,961 80
Vandana 7.7 68/495 AFBC 87 Rice husk -70,000 T
18,000 80
Rake 10.0 66/480 AFBC 95 Rice husk, soya husk, wheat straw- 84,468 T
12,621 87
Shalivahana 10.0 66/480 AFBC 90 Rice husk, bagasse – 83,767 T
14,782 85
However, due to excessive ash fouling of superheater tubes resulting in fre-quent boiler stoppage, steam temperature had to be reduced.Improper selection of combustion technology for different fuel/fuel mix y : As discussed above, improper selection of combustion technology will lead to lower Rankine efficiency of cycle and low PLF. For example, the current recommended technology for multi-fuel is travelling grate, which has lower efficiency. The Malwa project seems to have established AFBC as a viable technology for multi-fuel usage including low density biomass.Sourcing of plant from inexperienced vendors y : Some of the developers have procured lower cost plants with consequent O&M penalty. For example, Suryachambal Power Plant Ltd procured boiler from Sitson and faced a lot of problems due to superheater fouling and choking in fuel handling system. Improper design of fuel handling and feeding system y : Fuel handling becomes important, primarily when low density fuels (straw, stalks, etc.) are used. For example, Suryachambal Power Plant Ltd had to shut a plant down on a number of occasions initially because of the inadequate design of the fuel handling system.
Additional Submissions on Original Terms of Reference of the Assignment
46
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Tab
le 2
1 S
tru
ctu
red
dat
abas
e of
pow
er p
lan
tsP
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Cap
acit
y (M
W)
7.5
7.5
7.7
7.5
107.
510
10
Ste
am p
ress
ure
(a
ta)
6865
6866
6867
6666
Ste
am
tem
pera
ture
(°C
)45
046
549
548
548
550
048
048
0
Bio
mas
s –
Maj
orM
ust
ard
res
idu
eC
otto
n s
tick
sR
ice
husk
Ric
e hu
skR
ice
husk
Ric
e hu
skR
ice
husk
, so
ya h
usk
, w
heat
str
aw
Ric
e hu
sk,
baga
sse
Bio
mas
s –
Min
or
Gro
un
dn
ut
resi
du
e,
soya
bean
re
sid
ue,
Ju
lie
flor
a
Mu
star
d r
esid
ue,
w
heat
str
aw,
sark
and
a, w
ood
tr
imm
ings
D
eoile
d c
ake,
sa
w d
ust
, coa
l–
–C
otto
n
stic
k, s
aw
du
st, w
ood
ch
ips
Cot
ton
sti
ck,
whe
at s
traw
, ch
illy
stic
ks,
soya
hu
sk,
Julie
flor
a, t
ree
trim
min
gs,
bam
boo
husk
An
nu
al b
iom
ass
con
sum
ptio
n (
T)
80,0
0080
,000
70,0
0058
,000
85,0
0055
,845
84,4
6883
,767
An
nu
al c
oal
con
sum
ptio
n (
T)
00
18,0
0014
,600
24,0
0013
,961
12,6
2114
,782
Coa
l co
nsu
mpt
ion
–s
hare
of
tota
l co
nsu
mpt
ion
(%
)
00
2020
2220
1315
Pla
nt
load
fac
tor
(%)
8990
8790
8085
9590
Tabl
e 21
Con
td..
.
47
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Tabl
e 21
Con
td..
.P
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Com
bust
ion
te
chn
olog
yT
rave
llin
g gr
ate
Bot
tom
hop
per
AF
BC
AF
BC
AF
BC
AF
BC
AF
BC
AF
BC
AF
BC
Ava
ilin
g of
su
bsid
y (Y
es/N
o)N
oN
oN
oN
oN
oN
oN
oN
o
Exc
ise
exem
ptio
n
((Y
es/N
o/P
arti
al)
Yes
Par
tial
Yes
Yes
Yes
Yes
Yes
Yes
Acc
eler
ated
d
epre
ciat
ion
(Y
es/
No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Inco
me
tax
holid
ay (
Yes
/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Fu
el d
eliv
ery
poin
t
Fac
tory
gat
e√
√√
√√
√√
√
Col
lect
ion
cen
tre
X√
XX
XX
X√
Fu
el d
eliv
ered
by
Far
mer
s√
√X
XX
XX
√
Tra
der
s√
X√
√√
√√
√
Tra
nsp
orte
rs√
XX
XX
X√
√
By
own
per
son
nel
XX
XX
XX
X√
Mod
e of
pay
men
t (C
ash/
Cre
dit
)C
ash
Cas
hC
ash
Cas
hC
ash
Cas
hC
ash
Cas
h
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 21
Con
td..
.
48
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Tabl
e 21
Con
td..
.P
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Cos
t of
bio
mas
s at
far
mer
’s/
trad
er’s
en
d
(Rs/
T)
850–
2000
1500
1900
–210
016
00–1
800
1600
–180
016
00–1
800
1900
–195
017
20–1
770
Cos
t of
tr
ansp
orta
tion
of
biom
ass
(Rs/
T)
200
250
300
300
300
300
200
200
Cos
t of
bio
mas
s ha
nd
ling
in
fact
ory
(Rs/
T)
300
100
100
100
100
100
100
80
Net
cos
t of
bi
omas
s at
boi
ler
inle
t (R
s/T
)
1350
–250
018
5020
00–2
200
2000
–220
020
00–2
200
2000
–220
022
00–2
250
2000
–205
0
Pro
blem
s in
bio
mas
s av
aila
bilit
y (Y
es/N
o)
Exp
ort
of b
iom
ass
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Use
by
bric
k ki
lns
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Use
by
cem
ent
plan
tN
oN
o Y
es Y
es Y
es Y
esN
o Y
es
Use
by
solv
ent
ind
ust
ryN
oN
o Y
es Y
es Y
es Y
es Y
es Y
es
Use
by
pape
r pl
ant
No
No
No
No
No
No
Yes
N
o
Tabl
e 21
Con
td..
.
49
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Tabl
e 21
Con
td..
.P
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Use
by
conv
enti
onal
th
erm
al p
lan
t/ot
her
biom
ass
pow
er p
lan
ts
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Use
by
coge
ner
atio
n
pow
er p
lan
t
No
Yes
No
No
No
No
No
No
Use
by
proc
ess
plan
t N
o N
o Y
es Y
es Y
es Y
es N
o N
o
Mar
ket
bein
g m
anip
ula
ted
by
trad
ers
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Inco
rrec
t an
d
poor
qu
alit
y of
bi
omas
s
Yes
Yes
No
No
No
No
No
No
Ope
rati
on a
nd
m
ain
ten
ance
is
sues
(Y
es/N
o)
Non
-ava
ilabi
lity
of m
anpo
wer
No
No
No
No
No
No
No
No
Ash
fu
sion
Yes
Yes
No
No
No
No
No
No
Su
perh
eate
r co
rros
ion
Yes
Yes
No
No
No
No
No
No
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 21
Con
td..
.
50
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Tabl
e 21
Con
td..
.P
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Fu
el h
and
ling
and
fe
edin
g pr
oble
m Y
es N
o N
o N
o N
o N
o N
o N
o
Boi
ler
bed
coi
l fa
ilure
N
o N
o N
o N
o Y
es N
o N
o N
o
TG
ove
rhau
l/re
pair
No
No
No
No
No
No
No
No
Tri
ppin
g d
ue
to
non
-ava
ilabi
lity
of g
rid
Yes
Yes
Yes
Yes
Yes
Yes
Yes
PPA
con
dit
ion
s (Y
es/N
o)
Sin
gle-
part
tar
iff
No
Yes
No
No
No
No
No
No
Dou
ble-
part
tar
iff
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Esc
alat
ion
as
per
chan
ge in
fu
el
cost
No
No
No
No
No
No
No
No
Pro
mot
ers’
per
cept
ion
on
sta
te a
nd
reg
ula
tory
pol
icie
s
Su
ppor
t fr
om
SN
A (
Goo
d/
Sat
isfa
ctor
y/P
oor)
Sat
isfa
ctor
yS
atis
fact
ory
Sat
isfa
ctor
yS
atis
fact
ory
Sat
isfa
ctor
yS
atis
fact
ory
Sat
isfa
ctor
yS
atis
fact
ory
Is r
evis
ion
of
tari
ff
in p
ace
wit
h fu
el
cost
? (Y
es/N
o)
No
No
No
No
No
No
No
No
How
eas
y is
to
obta
in
perm
issi
on t
o u
se
gove
rnm
ent
lan
d?
(Eas
y/D
iffi
cult
/N
A)
Dif
ficu
ltD
iffi
cult
Dif
ficu
ltD
iffi
cult
Dif
ficu
ltD
iffi
cult
NA
NA
Tabl
e 21
Con
td..
.
51
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Tabl
e 21
Con
td..
.P
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Tim
e ta
ken
for
fi
nal
isat
ion
of
PPA
(M
onth
s???
)
67
67
87
56
Tim
e ta
ken
for
P
CB
app
rova
l (M
onth
s???
)
88
89
88
87
Is o
pen
acc
ess
allo
wed
? (Y
es/N
o)N
o N
o Y
es N
o N
o N
o N
o N
o
Un
iqu
e fe
atu
res
a) R
egis
tere
d
CD
M
proj
ect
b) N
o co
al
con
sum
ptio
n
a) S
peci
al b
otto
m
hopp
er d
esig
n
of A
FB
C b
oile
r ca
pabl
e of
mu
lti-
fuel
firi
ng.
It
can
u
se 7
0% w
heat
st
raw
an
d 3
0%
cott
on s
tick
s.
b) N
ot u
sin
g co
al
at a
ll.
c) D
evel
oped
52
ow
n f
uel
co
llect
ion
cen
tres
an
d m
obile
ch
ippe
rs.
d)
Reg
iste
red
CD
M
proj
ect.
a) T
o u
tilis
e as
h, a
bri
ck
plan
t in
pla
nt
prem
ises
of
capa
city
40
lakh
/yea
r ha
s be
en in
stal
led
. b)
A la
rge
shed
is
ere
cted
to
save
bio
mas
s fu
el g
etti
ng
wet
in r
ain
, et
c.
Par
t of
the
bi
omas
s fu
el is
bei
ng
colle
cted
in
own
col
lect
ion
ce
ntr
es b
y ow
n
man
pow
er u
p to
50
km
rad
ius.
Was
te r
ice
is
bein
g u
sed
as
biom
ass
fuel
(3
000
T/y
ear)
Not
ap
plic
able
Not
ap
plic
able
a) U
p to
10
km r
adiu
s,
farm
ers
brin
g bi
omas
s (c
otto
n
stal
k, J
ulie
fl
ora,
etc
.)
to t
he p
lan
t ga
te.
b) 5
col
lect
ion
ce
ntr
es
open
ed b
y co
mpa
ny in
20
08/0
9.
c) E
very
yea
r,
5 n
ew
colle
ctio
n
cen
tres
will
be
ad
ded
.
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 21
Con
td..
.
52
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Tabl
e 21
Con
td..
.P
aram
eter
(u
nit
)S
ury
acha
mba
l P
ower
Ltd
Mal
wa
Pow
er P
vt.
Ltd
Van
dan
a V
idyu
t L
tdN
RI
Pow
er a
nd
S
teel
Ltd
Su
dha
Agr
o an
d
Che
mic
als
Ltd
Nee
raj
Pow
er P
lan
t P
vt. L
td
Rak
e P
ower
L
tdS
haliv
ahan
a P
roje
cts
Ltd
Su
gges
tion
s by
the
pla
nt
own
ers
Wan
t in
crea
se in
ta
riff
lin
ked
to
biom
ass
fuel
pri
ce
rise
in m
arke
t an
nu
ally
(Y
es/N
o)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Wan
t ce
rtai
n
perc
enta
ge o
f po
wer
in o
pen
ac
cess
of
the
tota
l po
wer
exp
orte
d t
o co
mpe
nsa
te h
igh
fuel
pri
ce a
nd
be
tter
pro
fita
bilit
y (Y
es/N
o)
Yes
Y
es
Yes
Y
es
Yes
Y
es
Yes
Y
es
53
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Tab
le 2
2 A
nal
ysis
of
barr
iers
rel
ated
to
polic
y an
d r
egu
lato
ry a
spec
tsA
spec
tP
un
jab
Raj
asth
anC
hhat
tisg
arh
Mah
aras
htra
Pro
ject
al
loca
tion
/ ap
prov
al
Fin
al s
elec
tion
of
bid
der
bas
ed o
n
�sh
are
of e
ner
gy a
llott
ed t
o P
ED
AN
o su
ppor
t fr
om R
RE
C o
n
�si
te id
enti
fica
tion
an
d in
form
a-ti
on o
n b
iom
ass
avai
labi
lity
or
biom
ass
pow
er p
oten
tial
No
supp
ort
from
CR
ED
A o
n
�si
te id
enti
fica
tion
an
d in
form
a-ti
on o
n b
iom
ass
avai
labi
lity
or
biom
ass
pow
er p
oten
tial
Nil
�
Sta
tuto
ry
appr
oval
s an
d
clea
ran
ces
SN
A -
sin
gle
win
dow
cle
aran
ce a
s �pe
r po
licy,
info
rmat
ion
for
war
din
g au
thor
ity
– in
pra
ctic
e, in
spi
te o
f al
l th
e ch
arge
s co
llect
ed f
rom
the
dev
el-
oper
for
fac
ilita
tion
The
dev
elop
er h
as t
o fo
llow
up
wit
h �th
e re
spec
tive
dep
artm
ents
, tho
ugh
so
met
imes
SN
A p
rovi
des
ass
ista
nce
Dee
med
cle
aran
ce is
on
ly in
lett
er,
�n
ot in
spi
rit
Sta
te L
evel
Em
pow
ered
Com
- �m
itte
e pa
ssiv
e in
fas
t pr
ojec
t ap
prov
als
SN
A p
rim
arily
act
ing
as a
in-
�fo
rmat
ion
for
war
din
g au
thor
ity
Nil
�N
il �
Mon
itor
ing
No
mon
itor
ing,
as
foss
il fu
el c
on-
�su
mpt
ion
not
allo
wed
No
proc
edu
re in
pla
ce t
o tr
ack
the
�ac
tual
mar
ket
pric
e of
bio
mas
s
The
mon
thly
info
rmat
ion
fro
m
�po
wer
pla
nts
doe
s n
ot c
aptu
re
the
foss
il fu
el c
onsu
mpt
ion
an
d
the
mar
ket
pric
e of
bio
mas
sN
o pr
oced
ure
to
chec
k th
e �qu
alit
y of
dat
a pr
ovid
ed
The
mon
thly
info
rmat
ion
fro
m
�po
wer
pla
nts
doe
s n
ot c
aptu
re
the
foss
il fu
el c
onsu
mpt
ion
No
proc
edu
re t
o ch
eck
the
�qu
alit
y of
dat
a pr
ovid
ed
Nil
�
Ince
nti
ves
Gov
ern
men
t la
nd
is p
rovi
ded
at
a �lo
w c
ost,
if a
vaila
ble
RP
O a
t 1%
�
Gov
ern
men
t la
nd
is p
rovi
ded
at
�D
LC
of
10%
RP
O a
t 1.
45%
(m
in)
to 2
.95%
�(m
ax)
Gov
ern
men
t la
nd
pro
vid
ed
�on
leas
e as
per
the
In
du
stri
es
Dep
artm
ent,
Gov
ern
men
t of
C
hhat
tisg
arh
nor
ms
On
ly m
inim
um
RP
O f
rom
�re
new
able
en
ergy
pow
erR
PO
is a
t 5%
for
bio
mas
s �po
wer
On
ly m
inim
um
RP
O f
rom
re-
�n
ewab
le e
ner
gy p
ower
RP
O is
at
5% (
2008
/09)
�
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 22
Con
td..
.
54
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Ta
ble
22
Con
td..
.A
spec
tP
un
jab
Raj
asth
anC
hhat
tisg
arh
Mah
aras
htra
Tar
iff
Tar
iff
not
det
erm
ined
thr
ough
nor
- �m
al r
egu
lato
ry p
roce
ssC
ost
of p
ower
eva
cuat
ion
to
be b
orn
e �by
the
pro
ject
dev
elop
erE
scal
atio
n o
f va
riab
le c
harg
e co
mpo
- �n
ent,
not
at
par
wit
h m
arke
t pr
ices
Cos
t of
pow
er e
vacu
atio
n t
o be
�bo
rne
by t
he p
roje
ct d
evel
oper
Esc
alat
ion
of
vari
able
cha
rge
�co
mpo
nen
t, n
ot a
t pa
r w
ith
mar
ket
pric
es
Cos
t of
pow
er e
vacu
atio
n t
o be
�bo
rne
by t
he p
roje
ct d
evel
oper
Esc
alat
ion
of
vari
able
cha
rge
�co
mpo
nen
t, n
ot a
t pa
r w
ith
mar
ket
pric
es
Cos
t of
pow
er e
vacu
atio
n t
o be
�bo
rne
by t
he p
roje
ct d
evel
oper
Esc
alat
ion
of
vari
able
cha
rge
�co
mpo
nen
t, n
ot a
t pa
r w
ith
mar
ket
pric
es
Ope
n
acce
ssN
il �
Not
allo
wed
bu
t fo
r co
gen
era-
�ti
on a
llow
edN
ot a
llow
ed b
ut
for
coge
ner
a- �ti
on a
llow
edA
llow
ed f
or p
lan
ts w
hich
hav
e �d
ecla
red
the
ir w
ish
of s
ellin
g po
wer
thr
ough
ope
n a
cces
s in
th
e be
gin
nin
g
Cat
chm
ent
area
Not
defi
ned
in t
erm
s of
spa
tial
dis
- �ta
nce
(km
)N
il �
Not
defi
ned
in t
erm
s of
spa
tial
�d
ista
nce
(km
)N
ot d
efin
ed in
ter
ms
of s
pati
al
�d
ista
nce
(km
)
55
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
O&M problems y : Plants are facing unplanned shutdown because of non-avail-ability of grid resulting in lower PLF. For example, in Malwa Power Plant, on an average, there are 15 trippings per month on account of unavailability of grid. Plants are also facing problems of bed coil failure. For example, Sudha Agro Ltd is facing the problem of bed coil failure due to erosion of the bed coil.
Project financing �
Non-uniform interest rates and period of loan. For example, Suryachambal ygot loan at 14.25% rate of interest while Sudha Agro received loan at 13% interest rate.Lack of guidelines to financial institutions (FIs) from MNRE/Ministry of Fi- ynance for financing of biomass-based power projects.Large documentary work needs to be done before submission of appli- ycation to FIs leading to delay in financial closure. Usually financial closure takes 5–6 months.
1. DPR 2. Approval letter from SNA 3. PPA 4. Land details 5. Environmental impact assessment report
Sustainable biomass supply linkages �In all the states, there is no organised market of biomass. The biomass is yeither supplied by farmers themselves or by small traders.Lack of awareness among farmers regarding potential revenue generation yby selling surplus biomass to power plants. For example, in many parts in-terior of Rajasthan, surplus mustard residue is burnt in the fields or left to decompose.The biomass market in some states such as Chhattisgarh is being captured yby traders who take a margin of 15%–20%.Export to outside catchment area/increase in consumption of biomass by ylocal industry such as paper, brick kiln, cement, and oil mills leading to price increase of biomass.
3.3 Recommendations
3.3.1 Policy and regulatory aspects
The methodology adopted for arriving at the the recommendations for overcoming the barriers is given below. 1. Identification of the best practices (Table 23) among the four states under study
and suggest the measure undertaken by the state following the best practice for the other states
Additional Submissions on Original Terms of Reference of the Assignment
56
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Tab
le 2
3 Id
enti
fica
tion
of ‘
Bes
t P
ract
ice’
Issu
eE
xpla
nat
ion
Pra
ctic
eIm
pact
Cri
teri
a fo
r id
enti
fica
tion
of
‘bes
t pr
acti
ce’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
Pro
ject
in
itia
tion
: S
NA
an
d /o
r D
evel
oper
Pro
ject
s in
itia
tion
ei
ther
incl
ud
es S
NA
’s
dec
lara
tion
of
bid
/ ex
pres
sion
of
inte
rest
for
d
evel
opm
ent
of b
iom
ass
pow
er p
lan
t or
dev
elop
er’s
se
lf-i
den
tifi
ed p
ropo
sal
for
the
dev
elop
men
t of
a
biom
ass
plan
t in
a s
ite
of
its
choi
ce
Pu
nja
b:
SN
A o
r D
evel
oper
Raj
asth
an:
Dev
elop
er o
nly
Ch
hat
tisg
arh
: D
evel
oper
on
lyM
ahar
ash
tra:
SN
A o
nly
Pu
nja
b:
7.5
MW
in
5 ye
ars
Raj
asth
an:
46.3
M
W in
6 y
ears
Ch
hat
tisg
arh
: 16
7.49
MW
in 8
ye
ars
Mah
aras
htr
a: 9
5 M
W in
2 y
ears
The
fas
ter
the
cum
ula
tive
ca
paci
ty
of b
iom
ass
pow
er p
roje
cts
com
mis
sion
ed
Pro
ject
in
itia
tion
by
SN
A
Mah
aras
htra
Sin
gle
win
dow
cl
eara
nce
an
d
Em
pow
ered
C
omm
itte
e fo
r pr
ojec
t ap
prai
sal
Lis
t of
cle
aran
ces:
en
viro
nm
ent,
for
est
lan
d,
pollu
tion
con
trol
, wat
er,
use
of
NR
SE
res
ourc
es,
inve
stm
ent
clea
ran
ceR
ole
of E
mpo
wer
ed
Com
mit
tee:
Con
du
ct
mee
tin
g of
all
orga
nis
atio
ns
invo
lved
in
app
rova
ls t
o fi
x is
sues
an
d m
ater
ialis
e fa
ster
cl
eara
nce
s
Pu
nja
b:
Sin
gle
win
dow
cle
aran
ce a
nd
E
mpo
wer
ed C
omm
itte
e pr
acti
ce p
rese
nt
Raj
asth
an:
Sin
gle
win
dow
cle
aran
ce a
nd
E
mpo
wer
ed C
omm
itte
e pr
acti
ce p
rese
nt
Ch
hat
tisg
arh
: S
ingl
e w
ind
ow c
lear
ance
an
d E
mpo
wer
ed C
omm
itte
e pr
acti
ce a
bsen
tM
ahar
ash
tra:
Sin
gle
win
dow
cle
aran
ce
and
Em
pow
ered
Com
mit
tee
prac
tice
abs
ent
Pu
nja
b:
8 m
onth
sR
ajas
than
: 8
mon
ths
Ch
hat
tisg
arh
: 8–
9 m
onth
sM
ahar
ash
tra:
7–8
m
onth
s(f
or p
ollu
tion
cl
eara
nce
)
The
fas
ter
the
clea
ran
ces
No
sin
gle
win
dow
cl
eara
nce
an
d
com
mit
tee
for
proj
ect
appr
aisa
l
Mah
aras
htra
an
d
Chh
atti
sgar
h
Dee
med
cl
eara
nce
in
cas
e of
d
elay
fro
m
SN
A/o
ther
ap
prov
ing
orga
nis
atio
n
Dee
med
cle
aran
ce: T
he
auto
mat
ic c
lear
ance
u
nd
erst
ood
to
have
bee
n
gran
ted
, in
cas
e th
ere
is
any
del
ay in
cle
aran
ce
from
any
org
anis
atio
n
beyo
nd
a c
erta
in t
ime
peri
od
Pu
nja
b:
Dee
med
cle
aran
ce g
ran
ted
aft
er
60 d
ays
Raj
asth
an:
No
such
cla
use
in t
he p
olic
yC
hh
atti
sgar
h:
No
such
cla
use
in t
he
polic
yM
ahar
ash
tra:
No
such
cla
use
in t
he p
olic
y
Pu
nja
b:
Pol
luti
on
clea
ran
ce t
akes
8
mon
ths
agai
nst
60
day
s, a
s pe
r po
licy
for
dee
med
cle
aran
ce
(NO
IM
PAC
T)
Raj
asth
an:
Not
ap
plic
able
Ch
hat
tisg
arh
: N
ot
appl
icab
leM
ahar
ash
tra:
Not
ap
plic
able
The
act
ual
ti
me
take
n
in p
roje
cts
whe
re d
eem
ed
clea
ran
ce
is c
lose
to
the
tim
e m
enti
oned
in
the
sta
te
polic
y
No
dee
med
cl
eara
nce
Mah
aras
htra
, C
hhat
tisg
arh,
an
d R
ajas
than
Tabl
e 23
Con
td..
.
57
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Ta
ble
23
Con
td..
.Is
sue
Exp
lan
atio
nP
ract
ice
Impa
ctC
rite
ria
for
iden
tifi
cati
on
of ‘b
est
prac
tice
’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
Fin
al c
rite
ria
for
sele
ctio
n
of p
arty
Whe
n S
NA
init
iate
s pr
ojec
t id
enti
fica
tion
(P
un
jab
and
M
ahar
asht
ra),
the
bi
ds/
resp
onse
to
its
adve
rtis
emen
t is
sc
ruti
nis
ed b
ased
on
ce
rtai
n c
rite
ria.
If
mor
e th
an o
ne
part
y ar
e at
par
w
hile
con
sid
erin
g th
ose
crit
eria
, the
SN
A h
as t
o fi
x ce
rtai
n fi
nal
cri
teri
a fo
r th
e se
lect
ion
of
a pa
rty
Pu
nja
b:
En
ergy
allo
cati
on in
kin
d t
o S
NA
Raj
asth
an:
Not
app
licab
le, a
s pr
ojec
t id
enti
fica
tion
is d
one
by t
he d
evel
oper
an
d
hen
ce n
o co
mpe
titi
onC
hh
atti
sgar
h:
Not
app
licab
le, a
s pr
ojec
t id
enti
fica
tion
is d
one
by t
he d
evel
oper
an
d
hen
ce n
o co
mpe
titi
onM
ahar
ash
tra:
Fir
st-c
ome
firs
t-se
rved
bas
is
Pu
nja
b:
3 pr
ojec
ts
rece
ntl
y w
on b
y a
firm
hav
e qu
oted
10
% o
f en
ergy
al
loca
tion
Raj
asth
an:
Not
ap
plic
able
Ch
hat
tisg
arh
: N
ot
appl
icab
leM
ahar
ash
tra:
No
fin
anci
al b
urd
en
A c
rite
ria
shou
ld n
ot
beco
me
a bu
rden
to
the
dev
elop
er
Sel
ecti
on b
ased
on
firs
t-co
me
firs
t-se
rved
ba
sis
Mah
aras
htra
Who
bea
rs
the
cost
of
a po
wer
ev
acu
atio
n
syst
em
The
cos
t of
pow
er
evac
uat
ion
sys
tem
is e
ithe
r bo
rne
by t
he d
evel
oper
or
fun
ded
thr
ough
the
SN
A
Pu
nja
b:
100%
by
the
dev
elop
erR
ajas
than
: 10
0% b
y th
e d
evel
oper
Ch
hat
tisg
arh
: 10
0% b
y th
e d
evel
oper
Mah
aras
htr
a: 5
0% r
efu
nd
thr
ough
the
S
NA
(10
0% r
efu
nd
of
the
cost
of
pow
er
evac
uat
ion
is p
ropo
sed
in t
he la
test
rev
isio
n
of t
he p
olic
y)
Pu
nja
b:
Dev
elop
ers
are
dem
and
ing
for
fin
anci
al a
ssis
tan
ceR
ajas
than
: D
evel
oper
s ar
e d
eman
din
g fo
r fi
nan
cial
ass
ista
nce
Ch
hat
tisg
arh
: D
evel
oper
s ar
e d
eman
din
g fo
r fi
nan
cial
ass
ista
nce
Mah
aras
htr
a:
Dev
elop
ers
are
happ
y w
ith
the
init
iati
ve
Res
pon
se
from
d
evel
oper
s
50%
ref
un
d
thro
ugh
the
S
NA
(10
0%
refu
nd
of
the
cost
of
pow
er
evac
uat
ion
is
prop
osed
in t
he
late
st r
evis
ion
of
polic
y)
Mah
aras
htra
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 23
Con
td..
.
58
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project T
ab
le 2
3 C
ontd
...
Issu
eE
xpla
nat
ion
Pra
ctic
eIm
pact
Cri
teri
a fo
r id
enti
fica
tion
of
‘bes
t pr
acti
ce’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
En
sure
fa
ster
pro
ject
d
evel
opm
ent
afte
r al
lotm
ent
Aft
er a
llotm
ent
of
proj
ects
to
dev
elop
ers,
the
ex
ecu
tion
of
som
e pr
ojec
ts
get
del
ayed
du
e to
var
iou
s re
ason
s. S
NA
’s p
ract
ice
in
ensu
rin
g fa
ster
exe
cuti
on
of p
roje
cts
is a
n is
sue.
Pu
nja
b:
No
clar
ity
Raj
asth
an: T
ime
of 2
0–28
mon
ths
from
th
e d
ate
of p
roje
ct a
ppro
val i
s gi
ven
an
d R
s 0.
5 la
kh p
er M
W, R
s 1
lakh
per
MW
, Rs
2 la
kh p
er M
W, a
nd
Rs
5 la
kh p
er M
W f
or
exte
nsi
ons
of 1
mon
th, 2
mon
ths,
3 m
onth
s,
and
mor
e th
an 3
mon
ths
Ch
hat
tisg
arh
: O
ne
year
tim
e fo
r ex
ecu
tion
an
d f
urt
her
exte
nsi
ons
for
gen
uin
e re
ason
s,
othe
rwis
e al
lotm
ent
is c
ance
lled
Mah
aras
htr
a: R
efu
nd
able
com
mit
men
t fe
e of
Rs
5 la
kh p
er M
W is
col
lect
ed f
rom
th
e d
evel
oper
, whi
ch is
rel
ease
d u
pon
pr
oof
of o
rder
s pl
aced
on
the
equ
ipm
ent
supp
liers
. Als
o 6
mon
ths
is p
rovi
ded
for
ge
ttin
g cl
eara
nce
, ext
end
able
for
gen
uin
e re
ason
s an
d a
fin
al d
ead
line
of 2
yea
rs f
rom
al
lotm
ent,
fai
ling
whi
ch t
he p
roje
ct g
ets
can
celle
d
Pu
nja
b:
7.5
MW
in
5 ye
ars
Raj
asth
an:
46.3
M
W in
6 y
ears
Ch
hat
tisg
arh
: 16
7.49
MW
in 8
ye
ars
Mah
aras
htr
a: 9
5 M
W in
2 y
ear
Fas
ter
dev
elop
men
t of
cu
mu
lati
ve
capa
city
of
pro
ject
s (M
W)
in t
he
stat
e
Ref
un
dab
le
com
mit
men
t fe
e of
Rs
5 la
kh
per
MW
is
colle
cted
fro
m
the
dev
elop
er,
whi
ch is
re
leas
ed u
pon
pr
oof
of o
rder
s pl
aced
on
the
eq
uip
men
t su
pplie
rs.
Als
o 6
mon
ths
is p
rovi
ded
fo
r ge
ttin
g cl
eara
nce
, ex
ten
dab
le
for
gen
uin
e re
ason
s an
d a
fi
nal
dea
dlin
e of
2 y
ears
fro
m
allo
tmen
t,
faili
ng
whi
ch
the
proj
ect
gets
ca
nce
lled
Mah
aras
htra
Con
sum
ptio
n
of f
ossi
l fu
elT
he b
iom
ass
pow
er
plan
ts a
re a
llow
ed t
o u
se f
ossi
l fu
el f
or u
sage
, bu
t w
ith
a ca
p on
the
an
nu
al c
onsu
mpt
ion
, as
per
guid
elin
es o
f M
NR
E
(15%
) or
tho
se o
f th
e S
NA
/SE
RC
Pu
nja
b:
Usa
ge o
f fo
ssil
fuel
not
allo
wed
by
the
SE
RC
Raj
asth
an:
An
an
nu
al c
ap o
f 15
% fi
xed
by
the
SN
A in
lin
e w
ith
MN
RE
gu
idel
ines
Ch
hat
tisg
arh
: A
n a
nn
ual
cap
of
15%
or
25%
, dep
end
ing
upo
n t
he c
hoic
e of
the
d
evel
oper
du
rin
g pr
ojec
t al
lotm
ent
Mah
aras
htr
a: A
n a
nn
ual
cap
of
15%
, fi
xed
by
the
SN
A in
lin
e w
ith
MN
RE
gu
idel
ines
Pu
nja
b:
Act
ual
co
nsu
mpt
ion
fro
m
plan
t vi
sits
- 0
%R
ajas
than
: A
ctu
al
con
sum
ptio
n f
rom
pl
ant
visi
ts -
0%
Ch
hat
tisg
arh
: A
ctu
al c
onsu
mpt
ion
fr
om p
lan
ts v
isit
s -
20%
–22%
M
ahar
ash
tra:
A
ctu
al c
onsu
mpt
ion
fr
om p
lan
ts v
isit
s –
13%
–15%
The
act
ual
co
nsu
mpt
ion
fi
gure
s fr
om
plan
t vi
sits
ar
e w
ithi
n t
he
upp
er li
mit
sp
ecifi
ed b
y th
e S
NA
/S
ER
C
As
this
is a
st
ate-
spec
ific
issu
e an
d t
he
actu
al p
lan
ts
are
clos
e to
an
d w
ithi
n
the
spec
ified
lim
its,
all
the
fou
r st
ates
are
ha
vin
g be
st
prac
tice
All
fou
r st
ates
Tabl
e 23
Con
td..
.
59
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Ta
ble
23
Con
td..
.Is
sue
Exp
lan
atio
nP
ract
ice
Impa
ctC
rite
ria
for
iden
tifi
cati
on
of ‘b
est
prac
tice
’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
Mon
itor
ing
foss
il fu
el
con
sum
ptio
n
and
RP
O
com
plia
nce
The
mon
itor
ing
of a
ctu
al
foss
il fu
el c
onsu
mpt
ion
, d
eliv
ered
cos
t of
fu
el a
t a
plan
t le
vel i
n e
ach
stat
e,
and
col
lati
on o
f fi
gure
s on
ac
tual
pow
er g
ener
atio
n
for
RP
O c
ompl
ian
ce a
t a
stat
e le
vel
Pu
nja
b:
Upp
er li
mit
on
an
nu
al f
ossi
l fu
el c
onsu
mpt
ion
is 0
%, a
s P
SE
RC
has
n
ot a
llow
ed; P
ED
A d
oes
not
col
lect
any
in
form
atio
n f
rom
pla
nt
own
ers
Raj
asth
an:
Upp
er li
mit
on
an
nu
al f
ossi
l fu
el c
onsu
mpt
ion
is 1
5%, a
s pe
r M
NR
E;
RR
EC
has
a f
orm
at f
or m
onth
ly d
ata
colle
ctio
n, b
ut
resp
onse
fro
m p
lan
ts is
poo
r an
d n
o pr
acti
ce t
o ch
eck
the
qual
ity
of d
ata
prov
ided
. The
for
mat
for
dat
a co
llect
ion
co
vers
typ
es o
f bi
omas
s u
sed
, cu
mu
lati
ve
pow
er g
ener
atio
n t
hat
can
su
ppor
t m
onit
orin
g of
RP
O c
ompl
ian
ce, b
ut
not
fo
ssil
fuel
con
sum
ptio
n a
nd
del
iver
ed c
ost
of f
uel
Ch
hat
tisg
arh
: O
ptio
n g
iven
to
plan
t ow
ner
to
choo
se u
pper
lim
it o
n a
nn
ual
fo
ssil
fuel
con
sum
ptio
n b
etw
een
15%
an
d
25%
; CR
ED
A h
as a
for
mat
for
mon
thly
d
ata
colle
ctio
n, b
ut
resp
onse
fro
m p
lan
ts is
po
or a
nd
no
prac
tice
to
chec
k th
e qu
alit
y of
dat
a pr
ovid
ed. T
he f
orm
at f
or d
ata
colle
ctio
n c
over
s fo
ssil
fuel
con
sum
ptio
n,
del
iver
ed c
ost
and
cu
mu
lati
ve p
ower
ge
ner
atio
n t
hat
can
su
ppor
t m
onit
orin
g of
R
PO
com
plia
nce
Mah
aras
htr
a: U
pper
lim
it o
n a
nn
ual
fos
sil
fuel
con
sum
ptio
n is
15%
, as
per
MN
RE
; M
ED
A h
as 4
for
mat
s fo
r m
onth
ly d
ata
colle
ctio
n, b
ut
resp
onse
fro
m p
lan
ts is
poo
r an
d t
wo-
leve
l exe
rcis
es t
o ch
eck
the
qual
ity
of d
ata
prov
ided
. The
for
mat
s co
ver
the
quan
titi
es a
nd
cos
t (i
ncl
ud
ing
brea
k-u
p)
to h
elp
mon
itor
fos
sil f
uel
con
sum
ptio
n,
cost
at
a pl
ant
leve
l an
d c
um
ula
tive
pow
er
gen
erat
ion
to
supp
ort
mon
itor
ing
of R
PO
co
mpl
ian
ceR
ajas
than
: D
ata
from
pla
nt
visi
ts s
how
th
at f
ossi
l fu
el u
sage
is 0
%
Pu
nja
b:
Dat
a fr
om
plan
t vi
sits
sho
w t
hat
foss
il fu
el u
sage
is
0% Raj
asth
an:
Dat
a fr
om p
lan
t vi
sits
sh
ow t
hat
foss
il fu
el
usa
ge is
0%
Ch
hat
tisg
arh
: D
ata
from
pla
nt
visi
ts
show
tha
t fo
ssil
fuel
u
sage
is 2
0%–2
2%M
ahar
ash
tra:
Dat
a fr
om p
lan
t vi
sits
sh
ow t
hat
foss
il fu
el c
onsu
mpt
ion
is
13%
–15%
. RP
S
com
plia
nce
in
2007
/08
was
2.9
8%
as a
gain
st t
he t
arge
t of
4%
The
dep
th o
f in
form
atio
n
sou
ght
from
th
e po
wer
pl
ant
own
ers
to c
over
pe
rcen
tage
of
fos
sil f
uel
co
nsu
mpt
ion
(t
o ch
eck
com
plia
nce
of
cap
on
fo
ssil
fuel
co
nsu
mpt
ion
),
del
iver
ed
cost
of
fuel
(t
o su
ppor
t d
ata
requ
ired
d
uri
ng
fixa
tion
of
var
iabl
e S
ER
C),
cu
mu
lati
xve
pow
er
gen
erat
ion
(t
o su
ppor
t m
onit
orin
g of
RP
O
com
plia
nce
) an
d q
ual
ity
chec
k
The
for
mat
fo
llow
ed b
y M
ED
A c
over
s th
e qu
anti
ties
an
d c
ost
(in
clu
din
g br
eak-
up)
to
help
mon
itor
fo
ssil
fuel
co
nsu
mpt
ion
, co
st a
t a
plan
t le
vel a
nd
RP
O
com
plia
nce
at
a st
ate
leve
l
Mah
aras
htra
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 23
Con
td..
.
60
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project T
ab
le 2
3 C
ontd
...
Issu
eE
xpla
nat
ion
Pra
ctic
eIm
pact
Cri
teri
a fo
r id
enti
fica
tion
of
‘bes
t pr
acti
ce’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
An
nu
al
esca
lati
on o
f va
riab
le p
art
tari
ff
The
sta
tes
in w
hich
tw
o-pa
rt t
arif
f is
men
tion
ed,
the
vari
able
cha
rge
is
ann
ual
ly e
scal
ated
at
som
e pe
rcen
tage
Pu
nja
b:
5% o
n t
otal
tar
iff
Raj
asth
an:
5% o
n v
aria
ble
tari
ffC
hh
atti
sgar
h:
5% o
n v
aria
ble
tari
ffM
ahar
ash
tra:
5%
on
var
iabl
e ta
riff
Fie
ld v
isit
s sh
ow t
he
follo
win
g pr
ices
of
biom
ass
Pu
nja
b:
Not
av
aila
ble
Raj
asth
an (
Rs/
T):
85
0 (2
006/
07),
170
0 (2
007/
08),
an
d 1
925
(200
8/09
); C
AG
R
50%
Ch
hat
tisg
arh
: (R
s/T
) 12
00
(200
6/07
), 1
400
(200
7/08
), a
nd
230
0 (2
008/
09);
CA
GR
38
.44%
Mah
aras
htr
a: N
ot
avai
labl
e
The
an
nu
al
esca
lati
on o
f va
riab
le p
art
tari
ff is
clo
se
to t
he a
ctu
al
fuel
pri
ce
esca
lati
on
No
best
pr
acti
ce_
Bio
mas
s fu
el p
rice
co
nsi
der
ed
for
tari
ff
det
erm
inat
ion
Cer
tain
pri
ce o
f bi
omas
s fo
r ta
riff
det
erm
inat
ion
ha
s to
be
use
d f
or t
arif
f d
eter
min
atio
n f
ollo
wed
by
SE
RC
Pu
nja
b:
Not
spe
cifi
ed, a
s th
e ta
riff
was
not
d
eter
min
ed b
y th
e S
ER
CR
ajas
than
: R
s 12
16/T
lead
ing
to a
var
iabl
e co
mpo
nen
t of
Rs
1.69
/kW
h (2
009/
10)
Ch
hat
tisg
arh
: R
s 11
38.9
3/T
lead
ing
to
Rs
1.46
/kW
h (7
5:25
) an
d R
s 10
96.9
9/T
le
adin
g to
Rs
1.40
/kW
h (8
5:15
) (2
009/
10)
Mah
aras
htr
a: R
s 20
45/T
lead
ing
to R
s 2.
58/k
Wh
(200
9/10
)R
ajas
than
: R
s 19
25/T
at
site
Pu
nja
b:
Not
ap
plic
able
Ch
hat
tisg
arh
: R
s 22
00/T
at
site
(7
5:25
)M
ahar
ash
tra:
Rs
2475
/T a
t si
te
The
pri
ce
of b
iom
ass
con
sid
ered
fo
r ta
riff
d
eter
min
atio
n
is c
lose
to
aver
age
of
actu
al in
pl
ants
No
best
pr
acti
ce–
GC
V o
f bi
omas
s co
nsi
der
ed
for
tari
ff
det
erm
inat
ion
Cer
tain
cal
orifi
c va
lue
of b
iom
ass
for
tari
ff
det
erm
inat
ion
has
to
be
use
d f
or t
arif
f d
eter
min
atio
n f
ollo
wed
by
SE
RC
Pu
nja
b:
Not
spe
cifi
ed, a
s th
e ta
riff
was
not
d
eter
min
ed b
y th
e S
ER
CR
ajas
than
: 34
00 k
cal/k
gC
hh
atti
sgar
h:
3300
kca
l/kg
Mah
aras
htr
a: N
ot a
vaila
ble
as p
rese
nt
ord
er is
inte
rim
tar
iff,
whi
ch d
id n
ot
un
der
go t
he r
egu
lar
regu
lato
ry p
roce
ss
Pu
nja
b:
Not
A
pplic
able
Raj
asth
an:
3093
kC
al/k
gC
hh
atti
sgar
h:
2960
to
3221
kC
al/
kg(7
5:25
)M
ahar
ash
tra:
306
9 to
362
4 kC
al/k
g
The
GC
V
of b
iom
ass
con
sid
ered
fo
r ta
riff
d
eter
min
atio
n
is c
lose
to
aver
age
of
actu
al in
pl
ants
No
best
pr
acti
ce–
Tabl
e 23
Con
td..
.
61
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Ta
ble
23
Con
td..
.Is
sue
Exp
lan
atio
nP
ract
ice
Impa
ctC
rite
ria
for
iden
tifi
cati
on
of ‘b
est
prac
tice
’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
Ren
ewab
le
purc
hase
ob
ligat
ion
(R
PO
)
RP
O/S
peci
fica
tion
(R
PO
/R
PS
) is
the
obl
igat
ion
le
vied
on
the
loca
l d
istr
ibu
tion
lice
nse
e to
pu
rcha
se s
ome
perc
enta
ge
of it
s an
nu
al e
ner
gy
purc
hase
fro
m r
enew
able
so
urc
es
Pu
nja
b: T
he r
egu
lati
on d
efin
es t
he
perc
enta
ges
for
5 ye
ars,
i.e.
min
imu
m
perc
enta
ge f
rom
RE
sou
rces
is 2
%
(200
9/10
)R
ajas
than
: The
reg
ula
tion
defi
nes
the
pe
rcen
tage
s fo
r 6
year
s, i.
e. m
inim
um
pe
rcen
tage
fro
m b
iom
ass
pow
er is
1.4
5%
(200
9/10
) fo
r co
nsu
mpt
ion
pu
rpos
e an
d
max
imu
m is
2.9
5% (
2009
/10)
(w
itho
ut
pen
al c
lau
se)
Ch
hat
tisg
arh
: The
reg
ula
tion
defi
nes
th
e pe
rcen
tage
s fo
r 3
year
s, i.
e. m
inim
um
pe
rcen
tage
fro
m b
iom
ass
pow
er is
5%
(2
009/
10)
Mah
aras
htr
a: T
he r
egu
lati
on d
efin
es
the
perc
enta
ges
for
4 ye
ars,
i.e.
min
imu
m
perc
enta
ge f
rom
RE
sou
rces
is 6
%
(200
9/10
)
Pu
nja
b:
7.5
MW
in
5 ye
ars
Raj
asth
an:
46.3
M
W in
6 y
ears
Ch
hat
tisg
arh
: 16
7.49
MW
in 8
ye
ars
Mah
aras
htr
a: 9
5 M
W in
2 y
ears
; R
PS
com
plia
nce
in
2007
/08
was
2.9
8%
as a
gain
st t
he t
arge
t of
4%
The
hig
her
the
cum
ula
tive
bi
omas
s po
wer
in t
he
stat
e an
d t
he
mec
han
ism
of
RP
O/R
PS
co
mpl
ian
ce is
in
pla
ce
RP
O d
ecla
red
fo
r m
ore
than
5
year
s al
ong
wit
h m
inim
um
(fo
r co
nsu
mpt
ion
pu
rpos
e) a
nd
m
axim
um
(fo
r co
ntr
acti
ng
purp
ose)
Mah
aras
htra
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 23
Con
td..
.
62
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Ta
ble
23
Con
td..
.Is
sue
Exp
lan
atio
nP
ract
ice
Impa
ctC
rite
ria
for
iden
tifi
cati
on
of ‘b
est
prac
tice
’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
Allo
wan
ce o
f op
en a
cces
sO
pen
acc
ess
is a
rou
te
thro
ugh
whi
ch, i
f al
low
ed,
a po
wer
pla
nt
own
er c
an
sell
pow
er t
o an
y pa
rty
othe
r th
an t
he lo
cal
dis
trib
uti
on li
cen
see
afte
r pa
yin
g so
me
char
ges
to
the
loca
l dis
trib
uti
on
licen
see
Pu
nja
b: T
he d
evel
oper
is a
llow
ed in
ter-
stat
e op
en a
cces
s vi
de
stat
e n
otifi
cati
on
dat
ed 1
1 Ju
ne
2009
Raj
asth
an:
Not
allo
wed
, bu
t if
the
d
evel
oper
is n
ot h
appy
wit
h th
e ta
riff
, the
d
evel
oper
can
app
roac
h th
e S
ER
C f
or
revi
sion
Ch
hat
tisg
arh
: N
ot a
llow
edM
ahar
ash
tra:
If
the
dev
elop
er w
ants
ope
n
acce
ss a
nd
fin
anci
al a
ssis
tan
ce f
or p
ower
ev
acu
atio
n, h
e is
allo
wed
to
sell
pow
er
thro
ugh
ope
n a
cces
s, b
ut
wit
hin
the
sta
te.
If t
he d
evel
oper
wan
ts o
pen
acc
ess
wit
hou
t fi
nan
cial
ass
ista
nce
for
pow
er e
vacu
atio
n,
he is
allo
wed
to
sell
pow
er t
hrou
gh o
pen
ac
cess
eve
n b
eyon
d t
he s
tate
bou
nd
ary.
All
dec
isio
ns
to b
e ta
ken
bef
ore
PPA
is s
ign
ed
and
in t
he b
egin
nin
g
Pu
nja
b: T
oo e
arly
to
fin
d a
n im
pact
Raj
asth
an:
An
xiet
y am
ong
plan
t ow
ner
s to
sel
l pow
er t
hrou
gh
open
acc
ess
and
get
be
tter
tar
iff
Ch
hat
tisg
arh
: A
nxi
ety
amon
g pl
ant
own
ers
to s
ell p
ower
th
rou
gh o
pen
acc
ess
and
get
bet
ter
tari
ffM
ahar
ash
tra:
D
evel
oper
s ar
e ha
ppy
wit
h th
e n
ew c
han
ge
The
opt
ion
for
m
ode
of s
ale
of p
ower
is le
ft
open
to
the
pow
er p
roje
ct
dev
elop
er
If t
he d
evel
oper
w
ants
ope
n
acce
ss a
nd
fi
nan
cial
as
sist
ance
fo
r po
wer
ev
acu
atio
n,
he is
allo
wed
to
sel
l pow
er
thro
ugh
ope
n
acce
ss, b
ut
wit
hin
the
sta
te.
If t
he d
evel
oper
w
ants
ope
n
acce
ss w
itho
ut
fin
anci
al
assi
stan
ce
for
pow
er
evac
uat
ion
, he
is a
llow
ed
to s
ell p
ower
th
rou
gh o
pen
ac
cess
eve
n
beyo
nd
the
st
ate
bou
nd
ary.
A
ll d
ecis
ion
s to
be
tak
en b
efor
e P
PA is
sig
ned
an
d in
the
be
gin
nin
g
Mah
aras
htra
Tabl
e 23
Con
td..
.
63
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Ta
ble
23
Con
td..
.Is
sue
Exp
lan
atio
nP
ract
ice
Impa
ctC
rite
ria
for
iden
tifi
cati
on
of ‘b
est
prac
tice
’
Bes
t pr
acti
ceF
ollo
wed
in
the
stat
e of
Cat
chm
ent
area
The
rad
ial d
ista
nce
ar
oun
d t
he p
lan
t w
ithi
n
whi
ch t
he b
iom
ass
is t
o be
co
llect
ed a
s fu
el
Pu
nja
b: T
alu
ka li
mit
s (d
ista
nce
not
cle
arly
d
efin
ed)
Raj
asth
an:
Cle
arly
defi
ned
as
40 k
mC
hh
atti
sgar
h:
Not
cle
arly
defi
ned
Mah
aras
htr
a: D
istr
ict
bou
nd
ary
(dis
tan
ce
not
cle
arly
defi
ned
)
Pu
nja
b:
No
prob
lem
on
bio
mas
s av
aila
bilit
y, b
ut
the
upp
er li
mit
fro
m
econ
omic
an
alys
is is
40
km
Raj
asth
an:
No
prob
lem
on
bio
mas
s av
aila
bilit
yC
hh
atti
sgar
h:
No
prob
lem
on
bio
mas
s av
aila
bilit
y, b
ut
the
upp
er li
mit
fro
m
econ
omic
an
alys
is is
40
km
Mah
aras
htr
a: N
o pr
oble
m o
n b
iom
ass
avai
labi
lity,
bu
t th
e u
pper
lim
it f
rom
ec
onom
ic a
nal
ysis
is
40 k
m
Whe
ther
ca
tchm
ent
area
is c
lear
ly
defi
ned
an
d
un
der
the
ec
onom
ical
lim
itat
ion
s
Cat
chm
ent
area
is c
lear
ly
defi
ned
as
40
km
Raj
asth
an
Additional Submissions on Original Terms of Reference of the Assignment
Tabl
e 23
Con
td..
.
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
2. For the issues unaddressed by the best practices, recommendations have been given based on DSCLES’s analysis and conclusions from the present study
The recommendations on policy and regulatory aspects are provided in Table 24.
Table 24 Recommendations on policy and regulatory aspectsAspect Punjab Rajasthan Chhattisgarh Maharashtra
Project allocation/ approval
Selection of the �
bidder can be
done based on
first-come first-
served basis
RREC should �
prepare tehsil/
district level bio-
mass availability
plan and biomass
power potential
RREC should �
call for tenders
for particular
tehsils for fixed
catchment ar-
eas in a planned
manner
CREDA should �
prepare tehsil/
district level bio-
mass availability
plan and biomass
power potential
CREDA should �
call for tenders
for particular
tehsils for fixed
catchment in a
planned manner
Nil �
Statutory approvals and clearances
Remove sin- �
gle window
clearance and
Empowered
Committee
Remove sin- �
gle window
clearance and
Empowered
Committee
Nil � Nil �
Monitoring Monthly in- �
formation to
capture fossil
fuel consump-
tion, market
price of biomass,
and RPO as
in the case of
Maharashtra
Third-party �
survey to esti-
mate the market
price of biomass
– MNRE/SNA
Monthly in- �
formation to
capture fossil fuel
usage, market
price of biomass,
and RPO as
in the case of
Maharashtra
Third-party �
survey to esti-
mate the market
price of biomass
– MNRE/SNA
Monthly in- �
formation to
capture fossil fuel
usage, market
price of biomass,
and RPO as
in the case of
Maharashtra
Third-party �
survey to esti-
mate the market
price of biomass
– MNRE/SNA
Nil �
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Table 24 Recommendations on policy and regulatory aspectsAspect Punjab Rajasthan Chhattisgarh Maharashtra
Incentives Higher RPO �
Power evacuation �
cost should not
be borne by the
developer
Power evacuation �
cost should not
be borne by the
developer
Higher RPO � Higher RPO �
Tariff Third-party sur- �
vey to estimate
the market price
of biomass, track
annual growth
in price, and
GCV of biomass
– MNRE/SNA
Third-party sur- �
vey to estimate
the market price
of biomass, track
annual growth
in price, and
GCV of biomass
– MNRE/SNA
Third-party sur- �
vey to estimate
the market price
of biomass, track
annual growth
in price, and
GCV of biomass
– MNRE/SNA
Third-party sur- �
vey to estimate
the market price
of biomass, track
annual growth
in price, and
GCV of biomass
– MNRE/SNA
Open access
Nil � Open access �
should be pro-
vided in line with
Maharashtra
Open access �
should be pro-
vided in line with
Maharashtra
Nil �
Catchment area
Norms on �
catchment area
to be defined
clearly (not more
than 40 km)
Already defined �
(40 km catch-
ment area)
Norms on �
catchment area
to be defined
clearly (not more
than 40 km)
Norms on �
catchment area
to be defined
clearly (not more
than 40 km)
3.3.2 Technical (projects/products) deliverables
For achieving high PLF and cycle efficiency, it is necessary to select proper steam temperature and combustion technology for a particular biomass. Table 25 depicts the optimal steam temperature and the best combustion technology for different types of biomass.
In order to achieve high energy and operational efficiencies, technologically ad-vanced and experienced OEMs should be selected for supply of power island and balance of plant. Table 26 shows the list of technologically experienced OEM.
Fuel handling and feeding is an important area in the operation of biomass-based power plants. To achieve smooth operation of fuel handling and feeding system, experienced OEMs and appropriate fuel handling and feeding system should be selected for particular biomass. Table 27 shows the list of experienced OEM for fuel handling system.
Additional Submissions on Original Terms of Reference of the Assignment
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
Table 25 Optimal steam temperature and the best combustion technology for different types of biomassS. No. Biomass Optimal Steam
Temperature (Deg C) Best Combustion Technology
1 Mustard Residue 460 - 470 Bottom Hopper AFBC Boiler
2 Paddy Straw 450 - 460 Travelling Grate
3 Rice husk 495 - 500 AFBC
4 Cotton Residue 460 - 470 Bottom Hopper AFBC Boiler
5 Soyabean Residue 460 - 470 Bottom Hopper AFBC Boiler
6 Ground Nut Residue 460 - 470 Bottom Hopper AFBC Boiler
7 Bagasse 500 - 540 Travelling Grate
8 Wood Chips 500 - 540 AFBC
Table 26 Technologically experienced OEMsS. No. Equipment Experienced Vender
1 Bottom Hopper AFBC Boiler Thermax
2 AFBC Thermac/IJT/Cethar Vessels
3 Travelling Grate Thermac/IJT/Cethar Vessels
4 TG Set Siemens/Triveni/Shin Nippon
5 ESP Thermac/IJT/Alstom
Table 27 Experienced OEMs for fuel handling systemS. No. Name of OEM
1 Kwality Engineers Ltd
2 Bevcon Wayors Inc.
3 Concept Engineers
4 Masyc Projects Pvt. Ltd
5 Enviro Abrasion Ltd
In order to reduce plant stoppage due to grid trippings, plants should transmit power at higher voltage (at 132 kV and above) to the grid as at this voltage, there is almost nil grid tripping. To reduce boiler tube failure, thicker tubes (up to 8 mm) and protective caps can be used at bends and corners.
3.3.3 Project financing
For a biomass project to be financially attractive, the terms of debt need to be well defined so that the profitability of biomass-based power plants can be maintained for a longer term. Also, proper guidelines need to be issued to the FIs from MNRE/Ministry of Finance for financing of biomass-based power projects. For example, there has to be guidelines on the following aspects of financing:
67
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Interest rate �Total term loan period �Moratorium period �Capital cost of project per megawatt �Soft costs to be considered �Processing time of loan �
There is also a need for fast financial closure of biomass-based projects. Usually it takes as long as six to eight months for financial closure. MNRE/Ministry of Finance can issue guidelines to banks/FIs to financially close biomass projects in a stipulated time period.
A certain percentage of the total loan amount sanctioned for the complete financial year should be allocated for biomass-based projects.
3.3.4 Sustainable biomass supply linkages
Covered in detail under the follow-on action agenda developed during delibera-tions of meeting of 5 June 2009.
Additional Submissions on Original Terms of Reference of the Assignment
68
Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
UNDP/GEF-Biomass Power Project
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Report on Review of Performance of the Grid-connected Biomass-based Power Plants Installed in India
Issues and Challenges