Search

Home » Biomass » National Biomass Mission on the cards

National Biomass Mission on the cards

According to reports, the Ministry of New and Renewable Energy seems to be buoyed by the perceived success of the National Solar Mission, which has certainly helped create solar consciousness across the country. Now, the Ministry is working on a National Biomass Mission, and has asked the industry to prepare a mission document. This need not be anything more than a bricolage of information in public domain basted into a document, for the details are already pretty much known. To recount, India produces 620 million tonnes of bio resources, and after allowing for fuel and fodder, the surplus is about 150 million tonnes. This can support 18,000 MW of power, not counting another 5,000 MW of co-generation, against which the existing biomass power capacity is only 2,665 MW.

Biomass energy is rendered unremunerative, largely because of rising fuel prices and various levies. Fuel, which by nature is cash-and-carry, has competing customers and the prices fluctuate. As for charges, a good example is Tamil Nadu, where ‘scheduling charges’ and ‘system operation charges’ were hiked recently from Rs 27 to Rs 2,000 a MW for the former, and Rs 500 to Rs 2,000 a day for the latter. In addition there is a 5 per cent ‘electricity duty’.

This makes selling biomass power directly to customers uncompetitive. If the generator were to sell power to the state electricity utility, he gets Rs 4.70 a unit, which is straightaway a loss making proposition.

Biomass is ‘base load’, and firm power and needs to be encouraged over other forms of renewable energy. It is also the least expensive. To set up 1 MW of capacity, it takes Rs 5.5 crore, against Rs 6.5 crore for wind and Rs 9 crore for solar. Each MW capacity of biomass produces 8.5 million units of electricity a year, against 2.4 m u for wind and 1.7 m u for solar, under good conditions.

These are the issues that an association of biomass power producers took recently to Farooq Abdullah, Minister for New and Renewable Energy. He directed them to prepare a document for National Biomass Mission.

One comment

  1. In every taluka of each state a detailed study has to be made. i had suggested to KREDL and it has taken such actions of availability of biomass (continous), evacuation, less transport or collection of biomass or its management has to be simple, sustainability of supply, grid etc… based on such detailed study, Government has to release the business plan and the financial details with designated low cost funding institutions to attract small entrepreneurs of that locality to generate more employment and more entrepreneurs so that Money gets distributed to many…..i.e wealth distribution…… NO CAPITAL SUBSIDY, instead interest subsidy must be provided, thus, the fake equipment suppliers who have made billions on Capital subsidy by supplying low standard equipment can be taken to task including the developers who after getting Capital subsidy never bothered to run the plant….. Farmers shall be discouraged from demanding more price or exorbitant price for the biomass, otherwise the project is not sustainable or economically viable…

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Scroll To Top