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Cost of Electricity Generation by
Biomass-based Power Stations

Economics of Baharbari EmPower Partnership projects
Triple - bottom line performance of
Baharbari project
Financial Benefits
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Cost of Electricity Generation by Biomass-based Power Stations

There is a general perception that the cost of electricity generated by renewable energy
technologies is always higher than electricity generated by fossil fuel sources. While this is
true in many places, it is no longer valid for the rural areas of rural India. In most of the Indian
villages diesel generators are often the only source of power but 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 and
financial losses keep the power price low for agricultural pumps but now that industrial and
commercial consumers pay the actual cost of power, the biomass gasification based
electricity can easily compete when pure gas engines are used.

The graphs below show generation costs for typical 50 kW power plants.

ECONOMICS OF A BIOMASS GASIFICATION POWER PLANT
(55 kWe in Pure Gas mode )

The capital cost includes all equipment, building and project
development. It does not include the costs of land and grid
connection, if any.
Gasifier rating (Biomass throughout)
kg/h
65
Engine rating in pure diesel mode
kVA
110
Engine rating in gas fuel mode
kw
55
Capital cost of the Plant (after subsidy)
Rs. Lakhs
13.5
Equity
%
70
Dividend on equity
%
10
Loan
%
30
Interest Rate
%
13
Repayment period
years
10
Average Load
kWe
40
Diesel Price
Rs./Lt.
22,00
Total CO2 savings
Tons/yr.
125- 250

Pure Gas: Electricity price vs Running Hours





Pure Gas: Payback Period Vs Running Hours


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ECONOMICS OF A BIOMASS GASIFICATION POWER PLANT
(50 kWe in Dual Fuel mode )

The capital cost includes all equipment, building and project
development. It does not include the costs of land and grid
connection, if any.
 
Gasifier rating (Biomass throughout)
kg/h
65
Engine rating in pure diesel mode
kVA
82,5
Engine rating in dual fuel mode
kw
50
Capital cost of the Plant (after subsidy)
Rs. Lakhs
16,3
Client's Equity
%
70
Dividend on equity
%
10
Loan
%
30
Interest Rate
%
13
Repayment period
years
10
Average Load
kWe
40
Diesel Price
Rs./Lt.
22,00
Total CO2 savings
Tons/yr.
90:170


Dual Fuel Operation
Generation Cost Vs Running Hours

273




Dual Fuel Operation
Payback Period Vs Running hours



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