IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v19y2017i1d10.1007_s10668-015-9720-4.html
   My bibliography  Save this article

Enhancing viability of biofuel-based decentralized power projects for rural electrification in India

Author

Listed:
  • Debajit Palit

    (The Energy and Resources Institute)

  • Ramit Malhotra

    (The Energy and Resources Institute)

  • Sanjay Mande

    (Idam Infrastructure Advisory Pvt. Ltd)

Abstract

Decentralized power generation, using locally available biofuels from non-edible oilseeds, is an option for rural electrification in many developing countries. However, due to prevailing high price of non-edible oilseeds, such as Jatropha curcas, the cost of electricity generation is very high. This paper provides detailed financial analysis of straight vegetable oil (SVO)-based decentralized power project and proposes an innovative model for enhancing their financial viability. While for implementing agency operational cost recovery is the key for viability, affordable tariff is crucial for end-users. The paper attempts to estimate minimum desired price of electricity from the stakeholders' (producer and users) perspective using data gathered from selected operational SVO-based power generation projects in India. Analysis carried out in this paper indicates that operating the decentralized power plant at higher capacity utilization factor, by introduction of productive load, and differentiated tariffs for commercial and domestic consumers may not alone be sufficient to achieve the financial viability. The paper proposes an innovative integrated model of using biogas, obtained from the by-product de-oiled cake of non-edible oilseeds, as a feedstock for power generation, instead of using the SVO in engines. This reduces the fuel cost of power generation, thereby helping to bring down the tariff within the paying capacity of rural consumers. The main produce, viz. extracted non-edible oil, which was otherwise used as fuel for generating power, can be sold in local market for earning revenue, thereby enhancing the project’s economic viability. This paper sets forth the proposed integrated model as a viable biofuel-based decentralized power project for sustainable rural development in areas with adequate availability of oilseeds.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:endesu:v:19:y:2017:i:1:d:10.1007_s10668-015-9720-4
    DOI: 10.1007/s10668-015-9720-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-015-9720-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-015-9720-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ajanovic, Amela, 2011. "Biofuels versus food production: Does biofuels production increase food prices?," Energy, Elsevier, vol. 36(4), pages 2070-2076.
    2. Singh, R.N. & Vyas, D.K. & Srivastava, N.S.L. & Narra, Madhuri, 2008. "SPRERI experience on holistic approach to utilize all parts of Jatropha curcas fruit for energy," Renewable Energy, Elsevier, vol. 33(8), pages 1868-1873.
    3. 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.
    4. Jain, Siddharth & Sharma, M.P., 2010. "Prospects of biodiesel from Jatropha in India: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(2), pages 763-771, February.
    5. Ghosh, Sonaton & Das, Tuhin K. & Jash, Tushar, 2004. "Sustainability of decentralized woodfuel-based power plant: an experience in India," Energy, Elsevier, vol. 29(1), pages 155-166.
    6. Chakrabarti, Snigdha & Chakrabarti, Subhendu, 2002. "Rural electrification programme with solar energy in remote region-a case study in an island," Energy Policy, Elsevier, vol. 30(1), pages 33-42, January.
    7. Bhattacharyya, Subhes C., 2006. "Energy access problem of the poor in India: Is rural electrification a remedy?," Energy Policy, Elsevier, vol. 34(18), pages 3387-3397, December.
    8. 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.
    9. Timilsina, Govinda R. & Shrestha, Ashish, 2011. "How much hope should we have for biofuels?," Energy, Elsevier, vol. 36(4), pages 2055-2069.
    10. Kumar, Sunil & Chaube, Alok & Jain, Shashi Kumar, 2012. "Sustainability issues for promotion of Jatropha biodiesel in Indian scenario: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1089-1098.
    11. Ariza-Montobbio, Pere & Lele, Sharachchandra, 2010. "Jatropha plantations for biodiesel in Tamil Nadu, India: Viability, livelihood trade-offs, and latent conflict," Ecological Economics, Elsevier, vol. 70(2), pages 189-195, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Baral, Nawa Raj & Neupane, Pratikshya & Ale, Bhakta Bahadur & Quiroz-Arita, Carlos & Manandhar, Shishir & Bradley, Thomas H., 2020. "Stochastic economic and environmental footprints of biodiesel production from Jatropha curcas Linnaeus in the different federal states of Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Pandey, Vimal Chandra & Singh, Kripal & Singh, Jay Shankar & Kumar, Akhilesh & Singh, Bajrang & Singh, Rana P., 2012. "Jatropha curcas: A potential biofuel plant for sustainable environmental development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2870-2883.
    3. Navarro-Pineda, Freddy S. & Baz-Rodríguez, Sergio A. & Handler, Robert & Sacramento-Rivero, Julio C., 2016. "Advances on the processing of Jatropha curcas towards a whole-crop biorefinery," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 247-269.
    4. Cust, J. & Singh, A. & Neuhoff, K., 2007. "Rural Electrification in India: Economic and Institutional aspects of Renewables," Cambridge Working Papers in Economics 0763, Faculty of Economics, University of Cambridge.
    5. Moniruzzaman, M. & Yaakob, Zahira & Khatun, Rahima, 2016. "Biotechnology for Jatropha improvement: A worthy exploration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1262-1277.
    6. 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.
    7. Findlater, K.M. & Kandlikar, M., 2011. "Land use and second-generation biofuel feedstocks: The unconsidered impacts of Jatropha biodiesel in Rajasthan, India," Energy Policy, Elsevier, vol. 39(6), pages 3404-3413, June.
    8. Nieves, J.A. & Aristizábal, A.J. & Dyner, I. & Báez, O. & Ospina, D.H., 2019. "Energy demand and greenhouse gas emissions analysis in Colombia: A LEAP model application," Energy, Elsevier, vol. 169(C), pages 380-397.
    9. Ribeiro, Barbara E. & Quintanilla, Miguel A., 2015. "Transitions in biofuel technologies: An appraisal of the social impacts of cellulosic ethanol using the Delphi method," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 53-68.
    10. Rahman, Md. Mizanur & B. Mostafiz, Suraiya & Paatero, Jukka V. & Lahdelma, Risto, 2014. "Extension of energy crops on surplus agricultural lands: A potentially viable option in developing countries while fossil fuel reserves are diminishing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 108-119.
    11. 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.
    12. Raman, P. & Ram, N.K. & Gupta, Ruchi, 2013. "A dual fired downdraft gasifier system to produce cleaner gas for power generation: Design, development and performance analysis," Energy, Elsevier, vol. 54(C), pages 302-314.
    13. Polprasert, Chongchin & Patthanaissaranukool, Withida & Englande, Andrew J., 2015. "A choice between RBD (refined, bleached, and deodorized) palm olein and palm methyl ester productions from carbon movement categorization," Energy, Elsevier, vol. 88(C), pages 610-620.
    14. Kaundinya, Deepak Paramashivan & Balachandra, P. & Ravindranath, N.H., 2009. "Grid-connected versus stand-alone energy systems for decentralized power--A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 2041-2050, October.
    15. Gasparatos, A. & von Maltitz, G.P. & Johnson, F.X. & Lee, L. & Mathai, M. & Puppim de Oliveira, J.A. & Willis, K.J., 2015. "Biofuels in sub-Sahara Africa: Drivers, impacts and priority policy areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 879-901.
    16. Azad, A.K. & Rasul, M.G. & Khan, M.M.K. & Sharma, Subhash C. & Mofijur, M. & Bhuiya, M.M.K., 2016. "Prospects, feedstocks and challenges of biodiesel production from beauty leaf oil and castor oil: A nonedible oil sources in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 302-318.
    17. Banković-Ilić, Ivana B. & Stamenković, Olivera S. & Veljković, Vlada B., 2012. "Biodiesel production from non-edible plant oils," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3621-3647.
    18. Acheampong, Michael & Ertem, Funda Cansu & Kappler, Benjamin & Neubauer, Peter, 2017. "In pursuit of Sustainable Development Goal (SDG) number 7: Will biofuels be reliable?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 927-937.
    19. Babazadeh, Reza, 2017. "Optimal design and planning of biodiesel supply chain considering non-edible feedstock," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1089-1100.
    20. Purohit, Pallav, 2009. "CO2 emissions mitigation potential of solar home systems under clean development mechanism in India," Energy, Elsevier, vol. 34(8), pages 1014-1023.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:19:y:2017:i:1:d:10.1007_s10668-015-9720-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.