Cement, Energy & Environment

( \ Implementation Policy, 2011 . The state's current installed biomass capacity stands at about 40 MW and projects aggregating 307 MW are under construction. Recently, the Haryana government also signed agreements with independent power producers (IPPs) for adding 51 MW of biomass based capacity through five projects entailing a total cost of Rs 2.3 billion. The state has an estimated biomass power potential of 1,000 MW against an installed capacity of about 40 MW. The mismatch between generation costs and tariffs , however, has been a key concern for project developers. According to industry estimates, the fuel cost of such projects ranges from Rs 3.60 per unit to Rs. 3.90 per unit, depending on operational and financial parameters. Considering operation and maintenance costs, interests charges and depreciation costs, the cost of biomass-based power generation works out to over Rs 6 per unit. At present, the tariffs offered by states range from Rs 4.80 per unit (Madhya Pradesh) to Rs 5.83 per unit (Punjab). Further, the Central Electricity Regulatory Commission in its regulations for tariff determination for 2012-13 stipulates a normative capital cost of Rs 44.5 million per MW for these projects as against an industry estimate of Rs 65 million per MW. Rising fuel costs due to the lack of an organized supply chain as well as inadequate technological advancements have led to higher generation costs for biomass-based projects. In fact, the cost of fuel sources like forest residue, agricultural waste and non-cattle feed has increased to almost Rs 3, 000 per tonne from Rs 1,800 per tonne in recent months. Further, the lack of fuel collection efficiency has been a major factor impacting the supply chain. Given the current tariffs, large-scale production of briquettes from raw biomass is not financially viable . Biogas For several decades, biogas technologies have played a major role in meeting the energy challenges of rural India. The use of this technology was initiated by the Khadi and Village Industri es Commission (using the floating steel gas holder model) in 1960. However, the implementation of such plants received an impetus on ly after the erstwhile Ministry of Non– Conventional Energy Sources launched the National Project on Biogas Development in 1981- 82. The scheme evolved into the National Biogas and Manure Management Programme (NBMMP) in 2002-03. Under the NBMMP, about 4.5 million biogas plants had been installed in the country as of May 2012, against a potential of 12 million, representing a share of 37.5 per cent. During the Eleventh Plan, over 600,000 biogas plants were installed in the country against a target of 647,000 at an investment of about Rs 1.39 billion. Six projects in Karnataka, Andhra Pradesh and Punjab have also been registered under the clean development mechanism of the United Nations Framework Convention on Climate Change. Besides central government support for biogas projects, technological innovation is also being encouraged at the state level with a view to effectively utilize urban waste. For instance, the Mysore City Corporation plans to set up a biogas plant in the city, in partnership with the Swedish Environment Protection Agency. The project entails a cost of Rs 350 million and is proposed to be implemented on a public private partnership basis. The Delhi government is also looking to set up a biogas plant inside the Kesopur Sewage Treatment Plant complex in west Delhi. The Rs 250 million project is being supported by the Swed ish government and the Ministry of New and Renewable Energy (MNRE) on a 50:50 cost– sharing basis. Cogeneration The country's cogeneration potential is estimated to be about 5,000 MW as compared to the current installed cogeneration capacity of about 2,110 MW, representing a share of 8 per cent of the grid-connected renewable capacity. 2 1