Off-Grid Renewable Energy Applications – Strategy for Energy Access Biomass Gasifier based Village Electrification Opportunities ASEAN-INDIA Workshop on Cooperation in Renewable Energy 6 th November2012 New Delhi Dr D K Khare, Director Ministry of New & Renewable Energy

 Present Electricity Situation in India  Opportunities in Developing Biomass based Decentralized and Off-grid Solutions  Biomass Resource Estimation in India  Biomass Gasifier Based Mini Grids Experimented in India – Business Models  Sustainable Business Opportunities in Future

 40% population without Energy Access.  No Grid Or  No / Erratic Supply  Many Hamlets left out  Situation unlikely to improve substantially. Continued/-

Nearly 75 million rural households without grid connectivity nationally The corresponding figure for urban households is 6.5 million Residents of off-grid villages resort to burning kerosene in basic lanterns to produce light at night The average off-grid rural household in India spends Rs. 150 ($3) per month for 5 liters of kerosene for lighting Many electrified villages also face severe shortage of electricity 33% of the Indian population is estimated to be facing significant under- electrification-accessing less than 50 kWh of electricity per month/household

 Census of India, 2011  Out of total crores households (both rural and urban), only crores (67.2%) households are using electricity for lighting.  About 45 % (7.50 crores) rural households do not have access to electricity  About 7.75 crores (31.4%) households are using kerosene.  About lakh households have no lighting sources in India. House list ItemAbsolute number TotalRuralUrban Households by main source of lighting Total number of households 246,692,667167,826,73078,865,937 Electricity165,897,29492,808,03873,089,256 Kerosene77,545,03472,435,3035,109,731 Solar1,086,893916,203170,690 Other oil505,571407,91997,652 Any other493,291361,507131,784 No lighting1,164,584897,760266,824

ELECTRICITY FOR LIGHTING -2011ELECTRICITY FOR LIGHTING -2001

 67% households use firewood/crop residue, cow dung cake/coal etc. (R –87%; U – 26%)  29% households use LPG/PNG/Electricity/Biogas (R – 12%; U – 66%)  3% households use Kerosene (R – 1%; U – 8%)  Increase of 11 pts in use of LPG (R – 6 pt; U – 17 pt) Fuel used for cookingTotalRuralUrban Fire-wood Crop residue Cow dung cake Coal, Lignite, Charcoal Kerosene LPG/ PNG Electricity Biogas Any other No cooking

Scalable No transmission losses Demand driven and tailored to local needs Low gestation periods Technology ladder can help users select the economically appropriate system Biomass resources are available in most of the villages

 Estimated Power generation is more than 18,000 MW + from surplus agricultural residues only.  Many unutilized biomass residues such as pine needles, lantana etc. are also available.  In addition, possible to generate about 10,000 MW power from raising dedicated plantations on about 2 million hectare forest and non-forest degraded lands.

Agro residue Agro-Industrial residue Forest residue Energy Plantation

 Main Drivers are amongst other  High potential - About 15, ,000 MW  Biomass is the only renewable, which can generate sustainable direct and indirect income for the rural communities - in fact almost half the revenue earned from sale of power directly goes back to the farmers.  Diverse array of proven technology ranging from few kilowatt size to megawatt with both grid and off-grid solutions.  Higher net positive environment benefit.

 Every MW generated from such plants would be able to cover about 6000 rural household.  Thus, potentially 60 million household, about 80% of the un-served / underserved population of the whole country can be provided energy access by accelerated development of biomass based distributed power generation system - from MW  Total income potential of about Rs 1.5 crores per year per megawatt  Biomass power is the only renewable energy system, which makes direct contribution in enhancing financial and economic benefits to the farmers in particular and rural economy in general.  Utility would significantly benefit by promoting tail end project due to improved utilisation of rural network, reduction in T&D losses, meeting RPO in the most cost effective manner etc.

 Study Conducted in to upscale the programme.  Rice Belt – Low per capita electricity & Most backward region

 Biomass based power plants that uses rice husks/agricultural residues  32 kW capacity system with producer gas engine  Current scale- 60 mini-power plants in 250 villages /hamlets powering ~ 25,000 households  Micro-grid/Mini-grids to supply electricity  Distribution network over an area of about 2 to 3 km  Serves households and commercial users for 6-8 hours daily

BOOM- Build, Own, Operate and Maintain model Use about 2.0 kg per kWh of rice husk and purchased at Rs. 1.0 to 1.50 per kg from rice mills Securing source of supply against shortages and price increase Households pay fixed monthly charges of Rs. 50 for 15 W CFL, or package of two 15 W CFL's and mobile recharge for a monthly charge of Rs. 100 Commercial users, irrigation pumps (Rs 50/KWh) pay more Prepaid meters to ensure payments, prevent overloads Residual ash used for agarbatti making- additional revenue source Ministry provides Central Financial assistance of about 40% besides support for distribution network, training and capacity building

Saran Renewables, DESI Power are other biomass mini grids with broadly similar operations and business models Sunderbans based Gosaba island gasifier is the largest and oldest biomass mini grid 5x100 kW dual fuel biomass gasifiers 20 km each HT and LT network 100% funded by the government Differential pricing for households and businesses

 Mini-grid models more reliable and sustainable compared to stand-alone systems  Build Scale to cut costs and ensure bankability and commercial viability  Government subsidy and bank finance/equity critical  Battery & Grid drive costs – Solar-Biomass Hybrids ?  Load management- anchor/enterprise load and predictability important  Community participation, capacity building and plant O&M

BIOMASS GASIFIER 200 kW(th) ELECTRICITY GENERATION 50kW IRRIGATION BIOMASS FROM FARM Engine Exhaust ( 50K w at 400 °C) Engine Jacket Heat 50kW at 82.5 °C RURAL ELECTRIFICATON AGRICULTURE PRODUCTION Drinking Water. 400 L / Hr. Cold storage: 20 tn

Energy Interventions should prioritize livelihood generation activities to increase purchasing power of villagers

Ministry of New & Renewable Energy Government of India Block No. 14, CGO Complex, Lodhi Road, New Delhi Website –