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Bio-mass off-grid – Policy and Finance Issues and Mitigants

New Delhi, April 2015

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Bio-mass Based Electrification: A Snapshot Biomass

Estimated Production of Crop - 540 MT/yr

Estimated Surplus Avail. - 120-150 MT/yr

Power Generation Potential 16,000 MW

Cogeneration – 5,000 MW Biomass resource atlas -

http://lab.cgpl.iisc.ernet.in/Atlas

Total Installed Capacity – 171.96 MW (Off-grid only) 153.40 MW Industrial Captive 18.56 Village Electrification

ConfigurationAC Configuration; 32 – 120 kW; connected to 200 – 400 h/h

Cost (INR) 20,00, 000 – 70,00,000

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Bio-mass Based Electrification: Challenges and Mitigations C1: Policy Uncertainty:

Uncertainty on expansion of grid and possible implications on the off-grid power plants. M1: Clear guidelines to be set for

developers on post-grid scenarios, tariffs/pricing.

C2: Techno-economic feasibility: Techno-economic feasibility yet to be proven, high cost of power. M1: Comprehensive techno-

economic feasibility to be done for the sector to facilitate informed decision making.

C3: Access to Finance: Poor availability of affordable working capital and project financing

M1: Unbundling of distribution and power generation infrastructure

M2: Government Inst. to step in for creation of distribution infrastructure

M3: Dedicated financing facility for off-grid segments working capital need.

M4: Long term project financing principles (similar to other infrastructure projects) to be applied

C4: Skilled Manpower: Lack of skilled and trained manpower M1: MNRE to support development

of training modules and courses M2: Collaborations with other

existing initiatives (NSDC, Skill Development Ministry)

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Improved Bio-mass Cookstoves : A Snapshot Improved Bio-mass cookstoves

More than 75% of our rural households (approx. 145 million households) use traditional biomass cookstoves.

The traditional inefficient cookstoves are also a major cause of indoor air pollution (IAP).

WHO estimates more than 5 lakh deaths per year due to IAP in India.

Improved biomass cookstoves can significantly reduce consumption of biomass, reduction in IAP and emissions from households.

Fire-wood & Agricul-

tural Residu

e75%

Cow Dung11%

LPG11%

Kerosene1%

Others2%

Fuel Usage in rural India

MNRE has launched Unnat Chulha Abhiyan that aims to deploy 3 million improved biomass cookstoves.

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Improved Bio-mass Cookstoves: Challenges and MitigationsChallenges in Demand Creation C1: Poor Awareness about IAP:

Household are not aware of ill effects of IAP and benefits of ICS. M1:Mass campaigns to increase

awareness through TV, Radio and other channels.

C2: Affordability and Access to Finance: Lack of working capital for distributors and manufacturers; no consumer financing; M1: ICS can be included in DRI

scheme M2: Working capital facility for

manufacturers and distributors M3: VAT and other taxes to be

exempted

Challenges in Improving Supply C3: Ensuring Quality and

Standards: Lack of clarity on approval, standards and road map for technology development, “one size fits all does not work”. M1: Approval processes, Testing

Methodology to be developed in context of recent recommendations of WHO.

M2: User preferences should be incorporated in the approval process.

C4: Need for Coordination/Integration: ICS dissemination need to be integrated and coordinated with other interventions and agencies. M1: A mission mode for deploying ICS

in rural areas.

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Biogas for Household and Community: A Snapshot

Biogas Potential Manure & Poultry droppings

– 1,500 MW Urban (MSW) Waste –

2,600 MW Industrial Waste – 1,300

MW

47.98 lakh Biogas installation done in India.

Low-cost and an ‘ideal’ solution for household lighting and cooking energy needs.

Household Biogas Units

Mid-sized Biogas Units

Configuration2 – 4 m3 5 – 25 kW

Service

Cooking energy

Heat, electricity, motive power

Business Model

NGO/Entrepreneur driven installation services

Entrepreneur driven installation services

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Biogas : Challenges and Mitigations

C1: Operational Challenges hamper effectiveness: Supply chain need to be managed better to ensure smooth operation. M1:An enterprise/entrepreneur based model to provide operation and

maintenance.

C2: Biogas losing importance as a key source of energy for rural households. M1: More focus on promoting biogas as a viable option for lighting and cooking

energy.

C3: Easy access to working capital financing for entrepreneurs and developers: M1: Off-grid financing facilities to put more focus on Biogas.

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Thank You.

17/04/2023