 |
7.2.5.2
The programmes are being implemented with the active involvement of the
State Nodal Agencies, State Governments, State Electricity Boards, and
Financial Institutions. The Nodal Agencies are responsible for development
of proposals from their respective states; monitoring of the progress
of implementation; and, for providing post-installation feedback to MNES.
A major achievement of the Ministry’s promotional activities has
been the confidence generated among the financial institutions in this
sector. A number of major financial institutions such as IREDA, IDBI,
IDFC, IFCI, PFC and nationalised banks are being involved in project implementation.
7.2.5.3 As a result of support from various stakeholders, a momentum has been generated in the installation of optimum cogeneration projects in the private sector sugar mills. However, it has been realised that unless co-operative sector mills which constitute more than 55% of the sugar mills in the country, are also enabled to implement optimum cogeneration projects, the ultimate potential for additional power generation cannot be realised. The Ministry had earlier offered significantly higher financial incentives for the cogenerating sugar mills in the co-operative sector. However, in spite of these, the progress in actual project implementation has been hardly moderate. Keeping this in mind, the Ministry suggested constitution of a high powered committee to the Maharashtra Energy Development Agency, which could identify ways and means for accelerating the process of cogeneration project implementation in co-operative sector mills. The Committee has now been constituted under the chairmanship of the Sugar Commissioner in Maharashtra. The Committee has had its initial meetings and a work plan has been formulated. The report of the Committee is expected to form the basis for formulation of a special policy and incentive package for co-operative sector mills.
7.2.5.4 The Ministry has identified favourable policy guidelines, which generally lead to faster promotion of optimum bagasse based cogeneration projects in the Indian sugar mills. These include, a fair and attractive purchase price for the generated electricity, prompt payments for the purchased electricity, honouring of signed PPAs, expeditious statutory permissions wherever required, long term stability of declared policies, etc. The Ministry has been actively pursuing creation of these conditions with the concerned State/Central Government agencies. Recently, the Honourable Minister for Non Conventional Energy Sources has also taken up this issue with the Chief Ministers of concerned States as well as with the Central Ministries.
7.2.5.5 A strong reason for promotion of biomass power projects in the country pertains to their socio-economic benefits. These benefits include rural employment and income generation, environment improvement, improvement of grid and voltage conditions in the neighbouring areas, reduction of transmission losses, etc. It is well known that these benefits are not considered during the process of fixation of the purchase price of electricity. This has become especially true after the constitution of State Electricity Regulatory Commissions. A possible reason for this could be the difficulties associated with quantification of these socio-economic benefits. With a view to overcome this problem, the Ministry has sponsored a study which aims to estimate and quantify the socio-economic benefits of biomass power projects installed so far in the country. The study is being carried out by the Administrative Staff College of India who have surveyed all the biomass power projects installed in 4 states for this purpose and carried out extensive data collection in the command areas of each of the projects. The outcome of the study is expected to provide a basis for incorporation of intangible benefits of these projects into the price fixation mechanism and the data could also be utilised by the Government for considering a special dispensation for these projects.
7.3 BIOMASS GASIFIER PROGRAMME
Biomass gasification is the thermo-chemical conversion of solid materials into a gaseous fuel known as producer gas. The gas has low calorific value (1000-1200 kcal/Nm3), but it can be burnt efficiently with a good degree of control without emission of smoke. It can be used for replacing diesel oil in engines for mechanical and electrical applications or for replacing other forms of conventional energy in heating applications. The gasification route of conversion of biomass to useful energy has many advantages as compared to the other routes. These include easy adaptability to conventional internal combustion engines, higher conversion efficiencies in small capacity range, low per unit cost, etc. The Ministry has been supporting development of biomass gasification technology for almost two decades and as a result of these efforts, India today ranks among the technology leaders in the world. Biomass gasification systems from 5 kW to 1000 kW unit capacity suitable for using a variety of biomass have been developed indigenously, primarily as a result of the developmental support provided by the Ministry over several years.
7.3.2 Objectives of the Programme
Biomass Gasifier Programme has following objectives:
• To develop and promote commercialisation of technologies on biomass gasification for various end-uses.
• To promote R&D on gasification, producer gas engines, and associated activities.
• To take up demonstration projects for 100% indigenous producer gas engines, coupled with gasifiers for power generation.
• To support and enlarge these activities, through awareness creation, publicity measures, seminars/ workshops / business meets/training programmes etc.
7.2.5.3 As a result of support from various stakeholders, a momentum has been generated in the installation of optimum cogeneration projects in the private sector sugar mills. However, it has been realised that unless co-operative sector mills which constitute more than 55% of the sugar mills in the country, are also enabled to implement optimum cogeneration projects, the ultimate potential for additional power generation cannot be realised. The Ministry had earlier offered significantly higher financial incentives for the cogenerating sugar mills in the co-operative sector. However, in spite of these, the progress in actual project implementation has been hardly moderate. Keeping this in mind, the Ministry suggested constitution of a high powered committee to the Maharashtra Energy Development Agency, which could identify ways and means for accelerating the process of cogeneration project implementation in co-operative sector mills. The Committee has now been constituted under the chairmanship of the Sugar Commissioner in Maharashtra. The Committee has had its initial meetings and a work plan has been formulated. The report of the Committee is expected to form the basis for formulation of a special policy and incentive package for co-operative sector mills.
7.2.5.4 The Ministry has identified favourable policy guidelines, which generally lead to faster promotion of optimum bagasse based cogeneration projects in the Indian sugar mills. These include, a fair and attractive purchase price for the generated electricity, prompt payments for the purchased electricity, honouring of signed PPAs, expeditious statutory permissions wherever required, long term stability of declared policies, etc. The Ministry has been actively pursuing creation of these conditions with the concerned State/Central Government agencies. Recently, the Honourable Minister for Non Conventional Energy Sources has also taken up this issue with the Chief Ministers of concerned States as well as with the Central Ministries.
7.2.5.5 A strong reason for promotion of biomass power projects in the country pertains to their socio-economic benefits. These benefits include rural employment and income generation, environment improvement, improvement of grid and voltage conditions in the neighbouring areas, reduction of transmission losses, etc. It is well known that these benefits are not considered during the process of fixation of the purchase price of electricity. This has become especially true after the constitution of State Electricity Regulatory Commissions. A possible reason for this could be the difficulties associated with quantification of these socio-economic benefits. With a view to overcome this problem, the Ministry has sponsored a study which aims to estimate and quantify the socio-economic benefits of biomass power projects installed so far in the country. The study is being carried out by the Administrative Staff College of India who have surveyed all the biomass power projects installed in 4 states for this purpose and carried out extensive data collection in the command areas of each of the projects. The outcome of the study is expected to provide a basis for incorporation of intangible benefits of these projects into the price fixation mechanism and the data could also be utilised by the Government for considering a special dispensation for these projects.
7.3 BIOMASS GASIFIER PROGRAMME
Biomass gasification is the thermo-chemical conversion of solid materials into a gaseous fuel known as producer gas. The gas has low calorific value (1000-1200 kcal/Nm3), but it can be burnt efficiently with a good degree of control without emission of smoke. It can be used for replacing diesel oil in engines for mechanical and electrical applications or for replacing other forms of conventional energy in heating applications. The gasification route of conversion of biomass to useful energy has many advantages as compared to the other routes. These include easy adaptability to conventional internal combustion engines, higher conversion efficiencies in small capacity range, low per unit cost, etc. The Ministry has been supporting development of biomass gasification technology for almost two decades and as a result of these efforts, India today ranks among the technology leaders in the world. Biomass gasification systems from 5 kW to 1000 kW unit capacity suitable for using a variety of biomass have been developed indigenously, primarily as a result of the developmental support provided by the Ministry over several years.
7.3.2 Objectives of the Programme
Biomass Gasifier Programme has following objectives:
• To develop and promote commercialisation of technologies on biomass gasification for various end-uses.
• To promote R&D on gasification, producer gas engines, and associated activities.
• To take up demonstration projects for 100% indigenous producer gas engines, coupled with gasifiers for power generation.
• To support and enlarge these activities, through awareness creation, publicity measures, seminars/ workshops / business meets/training programmes etc.
