Page 1
Implemented by
05/05/2015
Bio-mass off-grid – Policy and Finance
Issues and Mitigants
New Delhi, April 2015
Page 2
Implemented by
Bio-mass Based Electrification: A Snapshot
05/05/2015
 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/Atl
as
 Total Installed Capacity – 171.96
MW (Off-grid only)
 153.40 MW Industrial Captive
 18.56 Village Electrification
Configuration
AC Configuration; 32 – 120 kW;
connected to 200 – 400 h/h
Cost (INR) 20,00, 000 – 70,00,000
Page 3
Implemented by
Bio-mass Based Electrification: Challenges and Mitigations
05/05/2015
 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)
Page 4
Implemented by
Improved Bio-mass Cookstoves : A Snapshot
05/05/2015
 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.
Firewood
&
Agricultur
al Residue
75%
Cow Dung
11%
LPG
11%
Kerosene
1%
Others
2%
Fuel Usage in rural India
MNRE has launched Unnat Chulha Abhiyan that aims to
deploy 3 million improved biomass cookstoves.
Page 5
Implemented by
Improved Bio-mass Cookstoves: Challenges and Mitigations
05/05/2015
Challenges 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.
Page 6
Implemented by
Biogas for Household and Community: A Snapshot
05/05/2015
 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
Configuration
2 – 4 m3 5 – 25 kW
Service
Cooking
energy
Heat,
electricity,
motive power
Business
Model
NGO/Entrepren
eur driven
installation
services
Entrepreneur
driven
installation
services
Page 7
Implemented by
Biogas : Challenges and Mitigations
05/05/2015
 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.
Page 8
Implemented by
Thank You.
05/05/2015

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

  • 1.
    Page 1 Implemented by 05/05/2015 Bio-massoff-grid – Policy and Finance Issues and Mitigants New Delhi, April 2015
  • 2.
    Page 2 Implemented by Bio-massBased Electrification: A Snapshot 05/05/2015  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/Atl as  Total Installed Capacity – 171.96 MW (Off-grid only)  153.40 MW Industrial Captive  18.56 Village Electrification Configuration AC Configuration; 32 – 120 kW; connected to 200 – 400 h/h Cost (INR) 20,00, 000 – 70,00,000
  • 3.
    Page 3 Implemented by Bio-massBased Electrification: Challenges and Mitigations 05/05/2015  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)
  • 4.
    Page 4 Implemented by ImprovedBio-mass Cookstoves : A Snapshot 05/05/2015  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. Firewood & Agricultur al Residue 75% Cow Dung 11% LPG 11% Kerosene 1% Others 2% Fuel Usage in rural India MNRE has launched Unnat Chulha Abhiyan that aims to deploy 3 million improved biomass cookstoves.
  • 5.
    Page 5 Implemented by ImprovedBio-mass Cookstoves: Challenges and Mitigations 05/05/2015 Challenges 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.
  • 6.
    Page 6 Implemented by Biogasfor Household and Community: A Snapshot 05/05/2015  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 Configuration 2 – 4 m3 5 – 25 kW Service Cooking energy Heat, electricity, motive power Business Model NGO/Entrepren eur driven installation services Entrepreneur driven installation services
  • 7.
    Page 7 Implemented by Biogas: Challenges and Mitigations 05/05/2015  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.
  • 8.