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.