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Sustainable model for financial viability of decentralized biomass gasifier based power projects

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  • Palit, Debajit
  • Malhotra, Ramit
  • Kumar, Atul

Abstract

This paper made a modest attempt for designing a sustainable model for financial viability of biomass gasifier power projects for enhancing electricity access in India and other developing countries. For long term sustainability of distributed generation projects in remote rural areas, viability from both project implementing agency (PIA) and the end-users need to be ensured. The minimum required prices of electricity from both PIA and end-user perspective have been estimated. While for PIA the cost recovery is the key for viability, the affordability to pay the electricity cost is crucial for the end users. Analysis carried out in this paper on the basis of data obtained from operational projects implemented in India reveal that it is essential to operate the system at a higher capacity utilization factor. While this can be achieved though creating convergence with locally relevant economic activity, it is also observed that micro-enterprises cannot pay beyond a certain price of electricity to keep it sustainable. This paper sets forth a case for developing a regulatory mechanism to extend the tariff fixation for the projects and providing cross-subsidies to ensure long term sustainability of off-grid project.

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  • Palit, Debajit & Malhotra, Ramit & Kumar, Atul, 2011. "Sustainable model for financial viability of decentralized biomass gasifier based power projects," Energy Policy, Elsevier, vol. 39(9), pages 4893-4901, September.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:4893-4901
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    1. Raman, P. & Ram, N.K., 2013. "Performance analysis of an internal combustion engine operated on producer gas, in comparison with the performance of the natural gas and diesel engines," Energy, Elsevier, vol. 63(C), pages 317-333.
    2. Parihar, Amit Kumar Singh & Sethi, Virendra & Banerjee, Rangan, 2019. "Sizing of biomass based distributed hybrid power generation systems in India," Renewable Energy, Elsevier, vol. 134(C), pages 1400-1422.
    3. Lanagran, Enrique & Ortega, María Victoria & Ortega, Manuel & Vera, David & Jurado, Francisco, 2023. "Design of an energy management system applied to an electric power plant based on a biomass gasifier," Renewable Energy, Elsevier, vol. 216(C).
    4. Palit, Debajit & Bandyopadhyay, Kaushik Ranjan, 2016. "Rural electricity access in South Asia: Is grid extension the remedy? A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1505-1515.
    5. You, Siming & Tong, Huanhuan & Armin-Hoiland, Joel & Tong, Yen Wah & Wang, Chi-Hwa, 2017. "Techno-economic and greenhouse gas savings assessment of decentralized biomass gasification for electrifying the rural areas of Indonesia," Applied Energy, Elsevier, vol. 208(C), pages 495-510.
    6. Mirzabaev, Alisher & Guta, Dawit & Goedecke, Jann & Gaur, Varun & Börner, Jan & Virchow, Detlef & Denich, Manfred & von Braun, Joachim, 2014. "Bioenergy, Food Security and Poverty Reduction: Mitigating tradeoffs and promoting synergies along the Water- Energy-Food Security Nexus," Working Papers 180421, University of Bonn, Center for Development Research (ZEF).
    7. Debajit Palit & Ramit Malhotra & Sanjay Mande, 2017. "Enhancing viability of biofuel-based decentralized power projects for rural electrification in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 263-283, February.
    8. Ng, Wei Cheng & You, Siming & Ling, Ran & Gin, Karina Yew-Hoong & Dai, Yanjun & Wang, Chi-Hwa, 2017. "Co-gasification of woody biomass and chicken manure: Syngas production, biochar reutilization, and cost-benefit analysis," Energy, Elsevier, vol. 139(C), pages 732-742.
    9. Palit, Debajit & Sovacool, Benjamin K. & Cooper, Christopher & Zoppo, David & Eidsness, Jay & Crafton, Meredith & Johnson, Katie & Clarke, Shannon, 2013. "The trials and tribulations of the Village Energy Security Programme (VESP) in India," Energy Policy, Elsevier, vol. 57(C), pages 407-417.
    10. Palit, Debajit & Bandyopadhyay, Kaushik Ranjan, 2017. "Rural electricity access in India in retrospect: A critical rumination," Energy Policy, Elsevier, vol. 109(C), pages 109-120.
    11. Ho, W.S. & Hashim, H. & Lim, J.S., 2014. "Integrated biomass and solar town concept for a smart eco-village in Iskandar Malaysia (IM)," Renewable Energy, Elsevier, vol. 69(C), pages 190-201.
    12. Chauhan, Anurag & Saini, R.P., 2015. "Renewable energy based off-grid rural electrification in Uttarakhand state of India: Technology options, modelling method, barriers and recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 662-681.
    13. Tong, Huanhuan & Shen, Ye & Zhang, Jingxin & Wang, Chi-Hwa & Ge, Tian Shu & Tong, Yen Wah, 2018. "A comparative life cycle assessment on four waste-to-energy scenarios for food waste generated in eateries," Applied Energy, Elsevier, vol. 225(C), pages 1143-1157.
    14. Chauhan, Anurag & Saini, R.P., 2016. "Discrete harmony search based size optimization of Integrated Renewable Energy System for remote rural areas of Uttarakhand state in India," Renewable Energy, Elsevier, vol. 94(C), pages 587-604.

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