EnergySector.in

Industry Information Insights 2013

Bio Energy in India

1

Table of Contents 1. Role of Renewable Energy in Power Sector ........................................................... 2

2. Overview of Bio Energy Sector ................................................................................ 3

2.1 Biomass Conversion .............................................................................................. 3

2.2 Bagasse Cogeneration in Sugar Mills .................................................................... 4

3. Bio Energy Potential ................................................................................................. 4

4. Installed Capacity of Biomass Power ...................................................................... 5

4.1 Bagasse Cogeneration .......................................................................................... 6

5. Policy Framework ...................................................................................................... 6

5.1 MNRE Schemes .................................................................................................... 6

5.2 NBMMP ................................................................................................................. 7

5.3 National Policy on Bio Fuels .................................................................................. 7

5.4 National Bio Energy Mission .................................................................................. 8

5.5 Removal of Barriers to Biomass Power Generation ............................................... 8

5.6 National Programme for Improved Cook stoves .................................................... 9

6. Issues and Challenges .............................................................................................. 9

List of Tables Table 1: State-wise Power Potential of Biomass Power .................................................. 4

Table 2: State-wise Bagasse Co-generation Potential .................................................... 5

Table 3: Installed Capacity of Bio Energy (December, 2013) .......................................... 5

Table 4: State-wise Installed Capacity of Bagasse Co-generation (March, 2013) ........... 6

2

1. Role of Renewable Energy in

Power Sector As of March 2013, India had an installed power generation capacity of 223.34 GW, of

which renewable energy sources accounted for 27.54 GW. Wind makes up the majority

of this installed capacity.

In the National Electricity Plan of 2012, the Central Electricity Authority (CEA) projected

the need for 350-360 GW of total power generation capacity by 2022. To achieve this

target and at the same time to use environmental friendly sources of power, renewable

energy will play a key role.

The 11th five-year plan had aimed to create 78.7 GW of additional capacity for grid

connected power but actual realization was around 50 GW. The 12th Plan envisions

installing 100 GW of new capacity of which 30 GW is projected to come from renewable

energy sources, of which wind would account for 15 GW.

Figure 1: Source-wise Installed Power Generation Capacity (March, 2013)

Figure 1 shows the share of different sources of energy in India’s total electricity

generation mix. The share of renewable energy increased from 7.8% at the end of FY08

to 12.3% at the end of FY13.

Mixed Targets for Renewable Energy

There is no uniform target for share of renewable energy deployment. Integrated Energy

Policy aims for only 6% share of renewable energy generation by 2032, the Ministry of

Thermal 68%

Nuclear 2%

Hydro 18%

RES 12%

3

New and Renewable Energy has a target of 10% by 2022 and NAPCC has set 15% by

2020.

2. Overview of Bio Energy Sector Bioenergy is renewable source of energy derived from biological material, known as

biomass. Biomass is any organic material which has energy in the form of stored

sunlight as chemical energy. It may include wood, wood waste, straw, manure,

sugarcane, and other byproducts of agricultural processes.

Biomass can be converted to convenient energy source using three different ways:

- Thermal conversion

- Chemical conversion

- Biochemical conversion

For example, Bioethanol is an alcohol made by fermentation, mostly from carbohydrates

produced in sugar or starch crops such as corn or sugarcane. Biodiesel is made from

vegetable oils and animal fats.

This biomass conversion results in biofuel in solid, liquid, or gaseous form. Biofuels

have gained popularity all over the world because of rising oil prices and the need for

energy security. Brazil, the United States, France, Sweden and Germany are the world

leaders in biofuel development and consumption.

2.1 Biomass Conversion

There are three general pathways to produce energy from biomass. Thermal biomass

conversion (or thermo-chemical) processes involve treatment of biomass under high

heat with or without an oxidant. It involves combustion, gasification or pyrolysis.

The most commonly used route is combustion as the technology used is similar to that

of a thermal plant based on coal, except for the boiler. The biomass is burnt in high

pressure boiler to generate steam that is used to operate a turbine. The net power cycle

efficiencies that can be achieved are about 23-25%. The exhaust of the steam turbine

can either be fully condensed to produce power, or used partly or fully for another useful

heating activity.

Biochemical conversion processes make use of specific micro-organisms to convert

biomass into high energy liquid (like ethanol) or gaseous (like methane) compounds.

Processes under this category include anaerobic digestion for biogas production and

fermentation into ethanol.

4

2.2 Bagasse Cogeneration in Sugar Mills

Sugar industry can produce electricity and steam for its own requirements. It can also

produce surplus power for sale to the electricity grid using same quantity of bagasse.

For example, if steam generation temperature/pressure is raised from 400ºC/33 bar to

485ºC/66 bar, over 80 kWh of incremental electricity can be produced for each tonne of

sugarcane crushed.

3. Bio Energy Potential The current availability of biomass in India is estimated at about 500 million metric

tonnes per year. Surplus biomass availability at about 120 to 150 million metric tonnes

per annum (covering agricultural and forestry residues) corresponds to a potential of

about 18,000 MW. In addition to this, about 5000 MW of additional power can be

generated through bagasse based cogeneration in the sugar mills.

Table 1 gives the state-wise potential of biomass power in India. Punjab has the

maximum potential of 3172 MW followed by Maharashtra (1887 MW), Uttar Pradesh

(1617 MW), Madhya Pradesh (1363 MW) and Haryana (1333 MW).

Table 1: State-wise Power Potential of Biomass Power

S. No. State Power Potential (MW)

1 Punjab 3172

2 Maharashtra 1887

3 Uttar Pradesh 1617

4 Madhya Pradesh 1364

5 Haryana 1333

6 Gujarat 1221

7 Karnataka 1131

8 Tamil Nadu 1070

9 Kerala 1044

10 Rajasthan 1039

11 Bihar 619

12 Andhra Pradesh 578

13 West Bengal 396

14 Odisha 246

15 Chhattisgarh 236

16 Assam 212

17 Himachal Pradesh 142

18 Jharkhand 90

5

19 Jammu & Kashmir 43

20 Goa 26

21 Uttarakhand 24

22 Manipur 13

23 Meghalaya 11

24 Nagaland 10

Total

17524

Table 2 gives state-wise potential of power that can be generated from bagasse

cogeneration. Maharashtra and Uttar Pradesh lead, each with the potential of 1250 MW.

Table 2: State-wise Bagasse Co-generation Potential

S. No. State Potential (MW)

1 Maharashtra 1250

2 Uttar Pradesh 1250

3 Tamil Nadu 450

4 Karnataka 450

5 Andhra Pradesh 300

6 Bihar 300

7 Gujarat 350

8 Punjab 300

9 Haryana and others 350

Total

5000

4. Installed Capacity of Biomass

Power Bio energy can be categorized into biomass, biofuels and biogas. As of 31 December,

2013, a total of 4,465.89 MW has been installed under bio energy, both as grid

connected and off-grid capacity. Table 3 shows the distribution of installed bio energy

capacity in India under different source and type.

Table 3: Installed Capacity of Bio Energy (December, 2013)

Source Type Capacity

Biomass Power & Gasification Grid Connected 1284.60

Bagasse Cogeneration Grid Connected 2512.88

Non-Bagasse Cogeneration Off-Grid 509.69

Rural Biomass Gasifier Off-Grid 17.05

6

Industrial Biomass Gasifier Off-Grid 141.67

4.1 Bagasse Cogeneration

A total of 213 bagasse cogeneration projects have been installed in India aggregating to

the capacity of 2332.43 MW.

Table 4: State-wise Installed Capacity of Bagasse Co-generation (March, 2013)

S. No. State No. of Projects Bagasse Cogeneration (MW)

1 Uttar Pradesh 53 710.50

2 Maharashtra 65 580.90

3 Karnataka 32 403.88

4 Tamil Nadu 26 327.00

5 Andhra Pradesh 22 163.05

6 Punjab 6 62.00

7 Bihar 4 43.30

8 Haryana 4 31.80

9 Uttarakhand 1 10.00

Total

213 2332.43

5. Policy Framework The Ministry of New and Renewable Energy has initiated a number of programmes for

promotion of efficient technologies for use of biomass as a source of energy. For

efficient utilization of biomass, bagasse based cogeneration in sugar mills and biomass

power generation have been taken up under biomass power and cogeneration

programme. In India, biomass materials used for power generation include bagasse,

rice husk, straw, cotton stalk, coconut shells, soya husk, de-oiled cakes, coffee waste,

jute wastes, saw dust, ground nut shells, etc.

5.1 MNRE Schemes

The Ministry of New and Renewable Energy (MNRE) has formulated the following

schemes for exploring the potential of bio-energy:

- Biomass Power and Biomass Cogeneration in Sugar Mills

- Biogas Power Generation Programme (BPGP)

- Biomass Gasifier Programme

- Waste to Energy Programme

7

- National Biogas and Manure Management Programme (NBMMP)

- Biomass Cogeneration Non-bagasse

The Ministry of New & Renewable Energy has incentivized non-bagasse cogeneration

in India since 2005. Cogeneration refers to the generation of both heat and electricity

and is also called combined heat and power (CHP). Bagasse is the residue of crushed

sugar cane from sugar mills. Non-bagasse includes byproducts from all other industries,

such as pulp and textiles.

The MNRE offers financial incentives in the form of an 80% AD in the first year of

commissioning a biomass plant and concessions on the customs for imported

equipment. Biomass developers can also avail a ten-year tax holiday on the power sale

while the manufacturers of equipment pay a reduced excise duty.

5.2 NBMMP

The National Project on Biogas Development (NPBD), which mainly caters to setting up

family type biogas plants, has been under implementation since 1981-82. In 1981, the

MNRE implemented the National Biogas and Manure Management Program (NBMMP)

to promote installations of family size biogas plants in rural households. The estimated

potential in this sector is twelve million units.

The program was reformed and extended during the eleventh five-year plan (November

2009 to April 2012). On 22 October, 2009, the Cabinet Committee on Economic Affairs

(CCEA) gave its approval for the continuation of NBMMP during the Eleventh Five Year

Plan Period with modified central financial assistance pattern with an expenditure of INR

562.89 crores. Under this program, special incentives were provided to this sector,

consisting of a fixed assistance of INR 16,700 per unit for North-eastern states and INR

10,000 per unit for other states.

About 4.5 million family type biogas plants (as of March, 2013) have been set up with

central subsidy since 1981-82.

5.3 National Policy on Bio Fuels

A National Policy on Bio-fuels was announced by the Government of India on 24

December, 2009 for development, production and use of biofuels, which primarily

include bio-ethanol for blending with petrol and bio-diesel for blending with diesel.

Biofuels provide a strategic advantage to promote sustainable development and to

supplement conventional energy sources in meeting the rapidly increasing requirements

for transportation fuels associated with high economic growth, as well as in meeting the

8

energy needs of India’s vast rural population. They can increasingly satisfy these

energy needs in an environmental-friendly and cost-effective manner while reducing

dependence on fossil fuels and thereby providing a higher degree of national energy

security.

The Indian approach to biofuels is based solely on non-food feed stocks that are to be

raised on degraded or wastelands that are not suited to agriculture, thus avoiding a

possible conflict between fuel and food security.

Salient Features of the National Policy on Biofuels

- Bio-diesel production is to be taken up from non-edible oil seeds in waste,

degraded or marginal lands.

- An indicative target of 20% blending of biofuels, both for bio-diesel and bio-

ethanol, by 2017 has been proposed.

- Minimum Support Price (MSP) for non-edible oil seeds is to be announced with

periodic revision to provide fair price to the growers.

- Minimum Purchase Price (MPP) for purchase of bio-ethanol and bio-diesel is to

be announced with periodic revision.

- Major thrust has to be given to research, development and demonstration with

focus on plantations, processing and production of biofuels.

- Financial incentives, including subsidies and grants, are to be considered for

second generation bio-fuels.

- A National Bio-fuel Coordination Committee, headed by the Prime Minister, is to

be set up for providing policy guidance and coordination.

- A Bio-fuel Steering Committee, chaired by Cabinet Secretary, is to be set up for

implementation of the Policy.

5.4 National Bio Energy Mission

The MNRE is in the process of framing the policy for the National Bio-Energy Mission.

The policy is to be implemented in two phases, the first phase in the twelfth plan period

and the second phase in the thirteenth plan period. Phase-1 is targeting an additional

3,000 MW of installed capacity. The MNRE has allocated INR 34 billion for the various

incentives under this policy.

5.5 Removal of Barriers to Biomass Power Generation

The “Removal of Barriers to Biomass Power Generation in India” scheme was

formulated by the MNRE and was officially started on 5 July, 2012. It aims to identify the

obstructions that are currently hampering the accelerated adoption of biomass power

9

technologies in India and to explore the feasibility of large-scale commercialization of

biomass power, through increased access to financing.

5.6 National Programme for Improved Cook stoves

The National Programme for Improved Cook stoves (NPIC) was launched in 1983 with

the aim to disseminate mud based improved cook stoves, equipped with chimneys, and

portable metallic stoves to increase the fuel use efficiency and to reduce indoor air

pollution.

6. Issues and Challenges In the biomass sector, the availability of waste in large quantities, which can be

transported to a plant at an acceptable cost, is primary obstacle faced by the project

developers.

A key obstacle to the accelerated deployment of biogas in India is the lack of technology

standardization. There is no proven, single module gasifier or gas cleaning system for a

capacity of more than 1 MW.

Biofuels, such as bio-diesel and bio-ethanol are not yet available in sufficient quantities

to meet the blending targets of the National Policy of Biofuels (2009).

E-Mail us at mail@energysector.in

Energy Sector Information Service 133-D, Mayur Vihar Phase – II Delhi – 110 091 (India) Phone: +91-95603-66515

Information is the key to success