This document discusses the need for biomass plantations to support biomass power plants in India due to uncertain biomass supply and prices. It provides details on the potential land available and biomass yields from plantations. A case study is presented on a 8 MW biomass power plant in Punjab that faced issues due to increasing biomass prices. To address this, the plant backed its supply with eucalyptus and napier grass plantations. However, the high costs of establishing and maintaining these plantations threatened the long term viability of power generation. The document recommends providing government incentives and subsidies to make plantation-backed biomass power plants more financially feasible.

1. Biomass Plantations Backed
Power Plant in Punjab -- A
Case Study

2. Introduction to Biomass
Plantations
 Need for biomass plantations
 Un-certainity in biomass supply
 Inefficient biomass markets
 Un-certainity in determination of biomass prices
 Available resources and potential land available in India
 Total land available for Plantation 15,184 Sq. KM.
 Potential of high yield plantation 13,01,50,292 MT
 A potential of another 15,000 MW could be added to the
existing biomass potential

3. Advantages of Biomass
Plantations
 Heat content of biomass – 4000 kCal / kg – equivalent to
that of coal
 Wood is low in Sulphur and not likely to pollute the
atmosphere
 Ash from burnt wood is a valuable fertilizer
 Reduces soil erosion
 Generates rural employment generation – 7 persons per
hectare of Plantation

4. Malwa Power Plant at
Muktaser
 Power Plant Capacity – 8 MW
 Biomass Consumption – 225
MT / Day
 Power Load Factor – 86%
 Biomass Prices and the need for
Biomass Plantations:
◦ Rs. 600 – Rs.1000 in 2005-06
◦ Rs. 3000 – Rs. 2500 in 2006-
07
 Increase in biomass prices have
made the biomass power
generation project unviable

5. Biomass Plantation at Malwa
 Eucalyptus and Napier Bajra were selected as
biomass plantations
 Eucalyptus with a GCV of 4,901kCal / kg in 500
Acres
 Napier Bajra with a GCV of 3,950 kCal / kg in 800
Acres

6. Continued……
Details of Cost / Ton of biomass produced from biomass
plantations Yield of the
Term of Total Acres Total yield Cost of Cost
the crop MT / year Lease from the Lease incurred /
single / Acre plantations/ Rs. / MT of
yield year /Year Biomass
Napier 3 36 300 10,800 25,000 1500
Bajra
Eucalyptus 6 10 500 5,000 25,000 1500
 Total amount of biomass obtained through
plantations is 15,800 MT
 18 – 20% of total biomass required / year
 Total Average cost of the biomass is Rs.
2000 – Rs.2380

7. Central Financial Assistance
 Instead of capital subsidy GBIs should be provided for
plantation backed biomass power plants
* Where X is the IRR rate for normal biomass power plant
* Where (X+Y) is the IRR Rate for Plantation Backed Biomass
Power Plant
 Fiscal Incentives for efficient power generation
equipment such as high pressure boilers and
turbines should be continued for the existing
biomass power generation systems