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Cost of Electricity Generation by Biomass-based Power Stations

 

There  is  a  general  perception  that cost  of  electricity  generated  by  renewable energy technologies is always higher than electricity  generated  by fossil  fuel sources. This is no longer  valid  for  rural areas as well  as  for the industries . In most of  the  Indian  villages  and  in industries diesel generators are often the only source of power. For such applications,  power from biomass gasifier  based plants  are  considerably  cheaper where ever biomass is available.  Even  for  dual fuel operation where 20 % diesel is used, the generation costs are lower,  especially  with  high  running hours and loads. The savings are dramatic when pure gas engines are used.

Even when grid power is available, the actual cost of power at the point of consumption is very high largely due to line  losses  in transmission  and  distribution.  High subsidies  keep  the  power  price  low  for  agricultural  pumps  and the consequent financial losses are passed on to industrial and commercial consumers who pay a higher amount for the power consumed by them. Hence  the  biomass gasification based electricity can easily compete when pure gas engines are used.

 Cost of generation (Unit Rate - Rs./ kWh) – For typical 100 / 200kW Power plant

  

Plant Description

Fuel

Cost

Specific fuel consumption (SFC)

Sp. fuel cost

Rs./kWh

Sp. O&M cost  

Rs./kWh

Total Sp. Gen. cost  

Rs./kWh

Diesel

Rs./Lt.

Biomass

Rs./kg

Diesel

Lt./kWh

Biomass

Kg/kWh

100 % Diesel mode

33.00

-

0.33

-

10.89

0.35

11.24

100% Producer gas mode

-

1.20 - 1.50

-

1.25 + 0.1

1.50 – 2.00

0.60 -0.80

2.10 – 2.80

Dual Fuel Mode (70-80% Gas + 20-30% Diesel)

33.00

1.20 - 1.50

0.075 – 0.090

1.10 + 0.1

3.70 - 4.80

0.60 – 0.80

4.30 – 5.60

Average Grid power cost for industries / institutions

 

 

 

 

 

 

5.50 *

 * Including demand charges.

 

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