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Page 1
Implemented by
17/04/2023
Bio-mass off-grid – Policy and Finance Issues and Mitigants
New Delhi, April 2015
Page 2
Implemented by
17/04/2023
Bio-mass Based Electrification: A Snapshot 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/Atlas
Total Installed Capacity – 171.96 MW (Off-grid only) 153.40 MW Industrial Captive 18.56 Village Electrification
ConfigurationAC Configuration; 32 – 120 kW; connected to 200 – 400 h/h
Cost (INR) 20,00, 000 – 70,00,000
Page 3
Implemented by
17/04/2023
Bio-mass Based Electrification: Challenges and Mitigations 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
17/04/2023
Improved Bio-mass Cookstoves : A Snapshot 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.
Fire-wood & Agricul-
tural Residu
e75%
Cow Dung11%
LPG11%
Kerosene1%
Others2%
Fuel Usage in rural India
MNRE has launched Unnat Chulha Abhiyan that aims to deploy 3 million improved biomass cookstoves.
Page 5
Implemented by
17/04/2023
Improved Bio-mass Cookstoves: Challenges and MitigationsChallenges 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
17/04/2023
Biogas for Household and Community: A Snapshot
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
Configuration2 – 4 m3 5 – 25 kW
Service
Cooking energy
Heat, electricity, motive power
Business Model
NGO/Entrepreneur driven installation services
Entrepreneur driven installation services
Page 7
Implemented by
17/04/2023
Biogas : Challenges and Mitigations
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.