Biomass pellets for power generation in India: a techno-economic evaluation

Abstract

Modern bioenergy is being recognized as an increasingly important low-carbon resource by policy-makers around the world to meet climate policy targets. In India also, there is a clear recognition of the significant role of bioenergy in electricity generation as well as in other applications. In this study, a preliminary attempt has been made to assess the techno-economic feasibility of biomass pellets-based power (BPBP) generation in India. Surplus availability of biomass feedstock from agriculture and forestry/wasteland sector is estimated at 242 million tonnes (Mt) for 2010–11 and is expected to rise to 281 Mt in 2030–31 due to increased crop production and associated waste/residue availability. In terms of related capacity, the potential of BPBP projects is estimated at 35 GW for 2030–31. The associated carbon dioxide mitigation potential resulting from the substitution of coal is estimated at 205 Mt in 2030–31 if the entire biomass surplus is to be diverted for power generation. The levelized cost of electricity is estimated at €0.12 per kWh for BPBP projects as compared to €0.10 per kWh for imported coal based power plants. For states with the lower tariff for biomass power, the break-even price of carbon for BPBP projects is estimated at €18 per tonne. Additionally, BPBP projects will generate employment of more than 5 million person-months in the construction of biomass power plants and over 200,000 full-time employments in the operation of BPBP plants and in the production of biomass pellets.