Dr D K Khare , Director Ministry of New & Renewable Energy mnre

1. Off-Grid Renewable Energy Applications –Strategy for Energy AccessBiomass Gasifier based Village Electrification OpportunitiesASEAN-INDIA Workshop onCooperation in Renewable Energy6th November2012New Delhi Dr D K Khare, Director Ministry of New & Renewable Energy www.mnre.gov.in

2. Presentation Content • Present Electricity Situation in India • Opportunities in Developing Biomass based Decentralized and Off-grid Solutions • Biomass Resource Estimation in India • Biomass GasifierBased Mini Grids Experimented in India – Business Models • Sustainable Business Opportunities in Future

3. Present Electricity Situation in India

4. Problem of Energy Access in Villages • 40% population without Energy Access. • No Grid Or • No / Erratic Supply • Many Hamlets left out • Situation unlikely to improve substantially. Continued/-

5. India has a 400 million energy poor population….. • Nearly 75 million rural households without grid connectivity nationally • The corresponding figure for urban households is 6.5 million • Residents of off-grid villages resort to burning kerosene in basic lanterns to produce light at night • The average off-grid rural household in India spends Rs. 150 ($3) per month for 5 liters of kerosene for lighting • Many electrified villages also face severe shortage of electricity • 33% of the Indian population is estimated to be facing significant under-electrification-accessing less than 50 kWh of electricity per month/household

6. Rural electrification scenario in India • Census of India, 2011 • Out of total 24.67 crores households (both rural and urban), only 16.59 crores (67.2%) households are using electricity for lighting. • About 45 % (7.50 crores) rural households do not have access to electricity • About 7.75 crores (31.4%) households are using kerosene. • About 11.64 lakh households have no lighting sources in India.

7. Electricity for lighting in India Electricity for Lighting -2011 Electricity for Lighting -2001

8. Fuel Used for Cooking • 67% households use firewood/crop residue, cow dung cake/coal etc. (R –87%; U – 26%) • 29% households use LPG/PNG/Electricity/Biogas (R – 12%; U – 66%) • 3% households use Kerosene (R – 1%; U – 8%) • Increase of 11 pts in use of LPG (R – 6 pt; U – 17 pt)

9. Opportunities in Developing Biomass based Decentralized and Off-grid Solutions&- Advantage in Decentrised systems- Biomass Resources & its Benefits

10. The decentralization advantage…. • Scalable • No transmission losses • Demand driven and tailored to local needs • Low gestation periods • Technology ladder can help users select the economically appropriate system • Biomass resources are available in most of the villages

11. Estimated Biomass Resources • Estimated Power generation is more than 18,000 MW + from surplus agricultural residues only. • Many unutilized biomass residues such as pine needles, lantana etc. are also available. • In addition, possible to generate about 10,000 MW power from raising dedicated plantations on about 2 million hectare forest and non-forest degraded lands.

12. Contribution of biomass in power potential -18000 MW

13. State wise power potential

14. Biomass Resources-Diverse Sources Agro-Industrial residue Agro residue Forest residue Energy Plantation

15. Are we having enough Biomass for Electricity? • Main Drivers are amongst other • High potential - About 15,000-18,000 MW • Biomass is the only renewable, which can generate sustainable direct and indirect income for the rural communities - in fact almost half the revenue earned from sale of power directly goes back to the farmers. • Diverse array of proven technology ranging from few kilowatt size to megawatt with both grid and off-grid solutions. • Higher net positive environment benefit.

16. Benefits of Rural Energy Access through Biomass…. • Every MW generated from such plants would be able to cover about 6000 rural household. • Thus, potentially 60 million household, about 80% of the un-served / underserved population of the whole country can be provided energy access by accelerated development of biomass based distributed power generation system - from 10000 MW • Total income potential of about Rs 1.5 crores per year per megawatt • Biomass power is the only renewable energy system, which makes direct contribution in enhancing financial and economic benefits to the farmers in particular and rural economy in general. • Utility would significantly benefit by promoting tail end project due to improved utilisation of rural network, reduction in T&D losses, meeting RPO in the most cost effective manner etc.

17. Rice Husk Utilization • Study Conducted in 2009-10 to upscale the programme. • Rice Belt – Low per capita electricity & Most backward region

18. Biomass GasifierBased Mini Grids Experimented in India – Business Models

19. Biomass Gasifier Based Mini GridsHusk Power Projects • Biomass based power plants that uses rice husks/agricultural residues • 32 kW capacity system with producer gas engine • Current scale-  60 mini-power plants in 250 villages /hamlets powering  ~ 25,000 households • Micro-grid/Mini-grids to supply electricity • Distribution network over an area of about 2 to 3 km • Serves 3-400 households and commercial users for 6-8 hours daily

20. Biomass Gasifier based AC mini-grid Model

21. Husk Power System…the economics • BOOM- Build, Own, Operate and Maintain model • Use about 2.0 kg per kWh of rice husk and purchased at Rs. 1.0 to 1.50 per kg from rice mills • Securing source of supply against shortages and price increase • Households pay fixed monthly charges of Rs. 50 for 15 W CFL, or package of two 15 W CFL's and mobile recharge for a monthly charge of Rs. 100 • Commercial users, irrigation pumps (Rs 50/KWh) pay more • Prepaid meters to ensure payments, prevent overloads • Residual ash used for agarbattimaking- additional revenue source • Ministry provides Central Financial assistance of about 40% besides support for distribution network, training and capacity building

22. Biomass Based Mini Grids Other Projects • Saran Renewables, DESI Power are other biomass mini grids with broadly similar operations and business models • Sunderbans based Gosaba island gasifier is the largest and oldest biomass mini grid • 5x100 kW dual fuel biomass gasifiers • 20 km each HT and LT network • 100% funded by the government • Differential pricing for households and businesses

23. Hybrid AC/DC and Biomass based grids

24. Gasifier Projects in W Champaran, Bihar

25. Gasifier Project in Bihar

27. Private Rural Electrification Projects- lessons • Mini-grid models more reliable and sustainable compared to stand-alone systems • Build Scale to cut costs and ensure bankability and commercial viability • Government subsidy and bank finance/equity critical • Battery & Grid drive costs – Solar-Biomass Hybrids ? • Load management- anchor/enterprise load and predictability important • Community participation, capacity building and plant O&M

28. Economic Impact

29. Sustainable Business Opportunities With Biomass Gasifier based electrification –Vision

30. Engine Jacket Heat 50kW at 82.5 °C Engine Exhaust ( 50Kw at 400 °C) Cold storage: 20 tn Drinking Water. 400 L / Hr. RURAL ELECTRIFICATON AGRICULTURE PRODUCTION

31. Energy Interventions should prioritize livelihood generation activities to increase purchasing power of villagers

32. LET THERE BE LIGHT

33. For Cooperation Contact… Ministry of New & Renewable Energy Government of India Block No. 14, CGO Complex, Lodhi Road, New Delhi 110022 Website – www.mnre.gov.in

34. Thanks