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Economic feasibility of electricity production from energy plantations present on community-managed forestlands in Madhya Pradesh, India

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  • Dwivedi, Puneet
  • Alavalapati, Janaki R.R.

Abstract

This paper assesses economic feasibility of utilizing community-managed degraded forest areas for raising energy crops and using the produced biomass for electricity production in the state of Madhya Pradesh, India through gasification technology. Three fast-growing species, three gasifiers of different capacities, three capital costs, and two scenarios of carbon payments were considered for analysis. Sensitivity and risk analyses were undertaken for determining the effects of variations in inputs on selected outputs. Results suggest that 5 million megawatt hour electricity can be generated annually which will prevent 4 million tons of carbon dioxide emissions per year. The production cost of a unit of electricity was found inversely related to the scale of production. The average cost of electricity at the consumer level produced using 100Â kW gasifier was $0.15/kWh, which was greater than the price of electricity supplied from grid i.e. $0.08/kWh. The unit cost of producing electricity using Acacia nilotica was lowest among all the selected species. Technological advancements suitable government incentives are needed to promote electricity generation from forest biomass through gasification technology. This will help in spurring economic development and reducing overall ecological footprint of the state.

Suggested Citation

  • Dwivedi, Puneet & Alavalapati, Janaki R.R., 2009. "Economic feasibility of electricity production from energy plantations present on community-managed forestlands in Madhya Pradesh, India," Energy Policy, Elsevier, vol. 37(1), pages 352-360, January.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:1:p:352-360
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    References listed on IDEAS

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    1. Nouni, M.R. & Mullick, S.C. & Kandpal, T.C., 2007. "Biomass gasifier projects for decentralized power supply in India: A financial evaluation," Energy Policy, Elsevier, vol. 35(2), pages 1373-1385, February.
    2. Kishore, V. V. N. & Bhandari, Preety M. & Gupta, Pratul, 2004. "Biomass energy technologies for rural infrastructure and village power--opportunities and challenges in the context of global climate change concerns," Energy Policy, Elsevier, vol. 32(6), pages 801-810, April.
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    1. Shafie, S.M. & Mahlia, T.M.I. & Masjuki, H.H. & Ahmad-Yazid, A., 2012. "A review on electricity generation based on biomass residue in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5879-5889.
    2. Fischer, Barry & Pigneri, Attilio, 2011. "Potential for electrification from biomass gasification in Vanuatu," Energy, Elsevier, vol. 36(3), pages 1640-1651.
    3. Shafie, S.M., 2016. "A review on paddy residue based power generation: Energy, environment and economic perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1089-1100.
    4. Valeria Costantini & Graziana Dizonno, 2010. "Bioenergy, Agriculture and the Developing Countries," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.

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