Economics of Electricity Generation Using Cattle Dung - A Case Study on Bio-methanation Power Plant in Ludhiana

Abstract

The paper has examined utilization of cattle dung for electricity generation through a case study on bio-methanation plant in Ludhiana. There are 1550 dairies in the Haibowal dairy complex in Ludhiana and the cattle dung is drained into a nearby nullah. A plant for electricity generation using cattle dung has been established in the area under UNDP/ Global Environment Energy Programme. The paper has studied the economics of electricity generation at this plant and has found that it is profitable to utilize the cattle dung for electricity generation, the capital-output ratio being 2.2 and payback period being 4 years. Besides electricity generation the plant also provides bio-manure. It also checks water pollution and emission of green house gases. The study has suggested that such plants should be established in all the dairy complexes of the country to help in electricity generation. The large farmers should constitute NGOs and SHGs to establish such plants in their respective areas. The central and state governments should extend the necessary support for the establishment of such plants.