dpr of hulasganj cluster_5dec2012

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Detailed Project Report

on

‘Rural Electrification through Renewable based

Decentralized Distributed Generation System

In Hulasganj Block of Jehanabad District in Bihar

using Locally Available Renewable Energy Resource’

Submitted to

MINISTRY OF POWER&

UNDP

Prepared by :

ABPS INFRASTRUCTURE ADVISORY PVTLTDDecember 2012



DPR for ‘Rural Electrification’ through RE based DDG Systemin a cluster of Contiguous Villages in Hulasganj Block of Jehanabad

using Locally Available Renewable Energy Resource

Disclaimer: ABPS Infra has taken due care and caution in compilation of data as has been obtained fromvarious sources including which it considers reliable and first hand. However, ABPS Infra doesnot guarantee the accuracy, adequacy or completeness of any information and it not responsible forerrors or omissions or for the results obtained from the use of such information and especiallystates that it has no financial liability whatsoever to the subscribers / users of this Report.

No part of this report can be reproduced, stored in a retrieval system, used in a spreadsheet ortransmitted in any form or by any means without permission of ABPS Infrastructure AdvisoryPrivate Limited.





9 PROJECT IMPLEMENTATION PLAN........................................................................... 589.1 Project Site and Grid Connectivity..................................................................................58

9.2 PDN and Asset Management ......................................................................................... 58

9.3 Protocol for Power Generation and Grid Management .................................................599.4 Arrangement for Insulation of Agricultural Load............................................................60

9.4.1 Feeder Separation...........................................................................................................60

9.4.2 Franchisee Arrangement................................................................................................. 60

9.4.3 Demand Response...........................................................................................................60

9.5 Franchisee Arrangement for MBC..................................................................................61

9.6 Criteria for PD selection ................................................................................................. 61

9.7 Contractual Arrangements............................................................................................. 61

9.7.1 Franchisee Agreement ....................................................................................................62

9.7.2 Power Purchase Agreement............................................................................................64

9.8 Financial assistance needed to ensure financial viability ............................................... 65

9.9 Bid Process Management............................................................................................... 66

10 Roll out plan for proposed RE based DDG project .................................................... 67

Annexure A information data base of Villages-Hamlets in selected cluster ..................... 68

Annexure B: Economic assessment of agro-residue as energy resource ........................... 78





List of Tables

Table 2.1Comparative Analysis of Potential Short-Listed Clusters ...................................... 10Table 3.1 Village & Hamlets in the Identified Cluster ......................................................... 15

Table 3.2 Demographic Details of Selected Cluster .............................................................. 16

Table 4.1 Electrification Status and Present Energy Usage in Selected Cluster ................... 18

Table 4.2 Estimation of Residential Load............................................................................. 19

Table 4.3 Estimation of Streetlight Load.............................................................................. 20

Table 4.4 Estimation of Community Building Load............................................................. 20

Table 4.5 Estimation of Non-Residential Productive Load................................................... 20

Table 4.7 Hourly scheduled load curve for sizing of RE based DDG power plant ................ 23

Table 4.8 Assessment of RE resource (Biomass) Availability within Selected Cluster .......... 26

Table 4.9 Potential Capacity for Power Generation ............................................................. 27

Table 4.10 Resource (Biomass) Feasibility Check................................................................. 27

Table 5.1 Space requirement for Biomass Storage ................................................................ 32

Table 5.2 Details of the Land Available for the DDG Plant in the Cluster ........................... 32

Table 5.3 Specifications and performance parameter of gasifier based power plant............... 32

Table 5.4 Project cost of typical 1MW gasifier based power plant ........................................ 34

Table 6.1 Panchayat wise estimated DT capacity requirement (kVA) .................................. 39

Table 6.2 Capacity wise Requirement of DTs ..................................................................... 40

able 6.3 Requirement of Distribution Transformer Capacity .............................................. 41

Table 6.4 Cost estimation of capacity addition of DTs required in the cluster ...................... 44

Table 6.5 Cost Estimation of 400V PDN Line in Cluster .................................................... 46

Table 6.6 Cost Estimate of Total PDN Infrastructure of Cluster (in Lacs) ........................... 46

Table 7.1 Various parameters and assumptions for financial analysis ................................. 48

Table 7.2 Cost of generation (COG) of electricity from biomass gasifier power plant ........... 49

Table 7.3 Cost of generation (COG) and Viability Gap under different scenarios ................ 50

Table 8.1 SWOT analysis of IPP model............................................................................... 56

Table 8.2 SWOT analysis of DGBDF Model....................................................................... 56





List of Figures

Figure 3.1Map of Jehanbad district and Hulasganj block..................................................... 12Figure 3.2 Map of Hulasganj Block, and short-listed cluster in the Block ............................ 13

Figure 3.3 Schematic of selected cluster showing villages-hamlets & existing PDN details . 14

Figure 4.1 Hourly load scheduling pattern in the cluster .................................................... 24

Figure 5.1 Schematic Diagram for Biogasifier ..................................................................... 30

Figure 5.2 Schematic Diagram proposed biomass Gasifier Power Plant............................... 35

Figure 5.3 Schematic Diagram proposed biomass Gasifier Power Plant............................... 36

Figure 8.1 Operational Structure of IPP Model .................................................................. 53

Figure 8.2 Operational Structure of DGBDF Model ........................................................... 55





1 INTRODUCTIONIndia being agriculture oriented country; the Government of India (GoI) views Rural

Electrification as a major prime mover for rural development for the improvement of

Human Development Index. Electricity is also considered as the basic pre-requisite for all

industrial activity and also contributes significantly to increasing agricultural productivity,

jobs and income generation activities. Government has given the priority for the rural

electrification in several policies and acts, also initiated several programs at the national

level to promote electrification of remote villages.

Renewable energy technologies have substantial potential to provide a reliable and secure

energy supply as an alternative to grid extension or as a supplement to grid-provided power

and therefore ideally suited to electrification of rural and especially remote areas which are

still lacking to access to modern energy source like electricity; major barrier perceived for

rural development. In India, locally available, renewable energy sources such as solar

energy, biomass, wind, or hydro energy can go a long way in alleviating the problem of lack

of electricity and can play a prominent role in extending access to energy. Government

promoted the deployment of various renewable energy technologies, which include family

biogas plants, solar street lights, solar lanterns, solar PV systems, biomass gasifiers and

micro-hydro plants. Despite all such policy interventions across the years, actual

performance on rural electricity services continues to be dismal.

In 2005, the Ministry of Power launched Rajiv Gandhi Grameen Vidyutikaran Yojana

(RGGVY) merging all ongoing rural electrification schemes, under the initiative “Power for

all by 2012”. The RGGVY scheme aims to provide electricity to rural areas through extension

of existing grid and by augmenting the infrastructure. Under RGGVY government has set

aside Rs 540 crores subsidy for electrification of hamlets and habitations which are not being

covered under the scheme on account of their remote locations through Decentralized

Distributed Generation (DDG) scheme as sub component of RGGVY. The development of

DDG based plant shall be focused on the harnessing the suitable renewable technologies

which is based on the locally available resource for generation of electricity in economical

way and distributing it in the identified cluster.

In the recent year the implementation of DDG has shown that remote village/hamlets are

spread very thinly and not offer the economy of scale to the project developers. On the other

hand there are many villages which are electrified and grid connected, but do not receive

adequate supply of electricity. Such villages are presently not covered under DDG.





With continued increasing energy shortages it is difficult to expect significant improvement

in energy access situation in near future. Though India has embarked upon an ambitious

programme of rural electrification viz. RGGVY, which may be expanding the grid

connectivity rapidly to several uncovered areas, the actual supply of electricity through the

established grid would still remain unpredictable and limited. Therefore providing

accessible, affordable and acceptable electricity to villages for ensuring energy security for

the poor would continue to be a major concern in electrification.

Recently MoP has also relaxed the guidelines of DDG for Left Wing Extremism (LWE)

affected districts for decentralized generation and distribution and has allowed coverage of

grid connected villages where supply of electricity is less than 6 hours or under-electrified.

In order to achieve the target of complete electrification the un-electrified villages, Ministry

of Power (MoP) has been implementing a project “Access to Energy – enhancing

effectiveness in electricity distribution and end-uses” with core funding from UNDP with

focus on up-scaling of DDG (Decentralized Distributed Generation) for achieving goal of

overall sustainable development in remote rural India. Under this initiative, UNDP is

supporting the up-scaling of DDG system as one of the core components of the project. As

part of the initiative, Access to Energy wanted to develop a Detailed Project Report (DPR)

and a Feasibility study of rural electrification through renewable based decentralized

distributed generation in Bihar.

This report is Detail Project Report (DPR) on Rural Electrification through Renewable based

Decentralized Distributed Generation System in a selected cluster of 42 contiguous villages

(a mix of un-electrified and under-electrified) in Hulasganj Block of LWE District of

Jehanabad in Bihar, using locally available biomass resource and solar energy. This DPR

gives the requisite details on the cluster identification, socio–demographic analysis of the

selected cluster, estimation of different types of load and associated energy demand for

different power consumer categories as well as estimation of biomass resource availability

within the selected cluster for the deciding the capacity of the proposed biomass gasifier

power plant.





2 CLUSTER FINALIZATION FOR DPR PREPARATIONThis section gives details of step by step approach adopted for selecting and finalizing the

selected cluster of contiguous habitations comprising of un - & under-electrified

villages/hamlets for DPR preparation.

In consultation with key stakeholders of the Project Steering Committee, a cluster of

villages/hamlets was identified in Hulasganj block of Jehanabad district of Bihar. Various

steps involved in finalizing the cluster are summarized below:

• Based on the secondary information for the targeted LWE districts, 3 potential blocks

viz Kaler (Arwal district), Haspura (Aurangabad district) and Manpur (in Gaya

district) were identified in October 2011

• In November 2011, 12 potential clusters in these blocks not covered under RGGVY

with good mix of under-electrified & un-electrified villages/hamlets were identified.

Field visits for assessment of ground realities in short-listed 4 clusters viz Nabinagar

(Aurangabad), Jhajha (Jamui), Arawal (Arwal) and Hulasganj (Jehanabad) were

carried out in December 2011. During the field visit and analysis of the electrification

status of the villages following observations made (See Table 2.1),

Nabingar – Aurangabad, almost all villages & even large tolas electrified

under RGGVY & some small tolas (10-30HHs) left out.

Hulasganj-Jehanabad: only census villages got electrified and large tolas yet

un-electrified (in many cases tolas larger than main village).

Jhajha-Jamui: Mixed situation. Some RGGVY villages are electrified & many

un-electrified and some smaller tolas un-electrified

Arwal-Arawal: All villages covered under RGGVY but yet to get electricity

and some tolas are un-electrified

Finally in December 2011, based on recommendations of Project Coordination Committee,

cluster consisting of 42 habitations (villages/hamlets both un-electrified and under-

electrified) in Hulasganj block of Jehanabad district was selected for this DPR preparation

for development of planned cluster based rural electrification project in LWE district of

Bihar under Access to Energy Programme of UNDP-MoP.





Table 2.1Comparati ve Anal ysis of Pot enti al Short -Li st ed Cl ust ers

Parameters Hulasganj(Jehanabad)

Nabinagar(Aurangabad)

Arwal (Arwal) Jhajha (Jamui)

No of villages 48 300 67 172

No of villages notcovered under RGGVY

8 81 14 39

No of hamlets notcovered RGGVY

NA 88 NA 70

Possible cluster ofvillages/hamletsUnder-electrified (<6hrs)Un-electrified

~39~14~25

~39~36~3

~40~20+~20

~43~13~30

Terrain Quite plain withgood agriculturedue to adjoining

canal & river

Quite plain. Goodagriculture due tolow water table

Quite plain, Goodagriculture due toadjoining canal-

river

Hilly toughterrain. Forestarea with low

agricultureExisting electrificationstatus

RGGVYinfrastructureactive thoughunder-supply for3-6hrs. Thoughmany censusvillages gotelectricity underRGGVY manylarge tolas still leftout and even inunder-electrified

villages mostlyminimal BPLconnections andrest don’t haveelectricity supply

RGGVYinfrastructureactive thoughunder-supply for2-4hrs. Most ofvillages as well asbig tolaselectricity underRGGVY and onlysmall (5-30HHs)are left out. Somepeople have taken

connections inaddition to BPLconnections.

RGGVYinfrastructure isin-active due totheft etc andtherefore manyvillages coveredunder RGGVY arestill un-electrified.Few tolas left outand are un-electrified.

RGGVYinfrastructure isin-active in manyvillages coveredunder RGGVYthough very fewget electricity forfew hours.

Observations on clusterformation

Goodcombination(60:40) of un-electrified andunder-electrified(<6hrs supply)villages underRGGVY

Less than 10% un-electrified villageswith rest under-electrified (2-4hrssupply) villagesunder RGGVY

Though all un-electrified with~20 un-electrified-non-RGGVYhamlets but othervillages arecovered underRGGVY though

are still withoutelectricity sogetting financialclearance for sameset of villages inDPR could bemain issue

Though looksreasonablecombination(30:70) of under-electrified and un-electrified morethan 2/3rd of un-electrified villages

are still withoutelectricity thoughcovered underRGGVY so gettingfinancial clearancefor same set ofvillages in DPRcould be mainissue.





Parameters Hulasganj(Jehanabad)

Nabinagar(Aurangabad)

Arwal (Arwal) Jhajha (Jamui)

Renewable energy

options

Biomass-agro

residue, solar

Biomass-agro

residue, solar

Biomass-agro

residue, micro-hydro, solar

Biomass-forest

residue, solar

Biomass availability Mainly agro-residue like ricehusk inabundance

Mainly agro-residue like ricehusk inabundance

Mainly agro-residue like ricehusk inabundance

Mainly forest-residue so mightnot be sustainable

Demonstration effect Very High Very High High Low

Private SectorParticipation

Likely Likely Unlikely Unlikely

Over ranking withremarks

1Good mix of diff

category ofvillages. Good

biomassavailability

2Large no of underelectrified but few

un-electrified

villages. Goodbiomass

availability.

3All villages

without electricityand many

covered byRGGVY. Good

biomass & hydro

4Hilly terrain, low

agro residueavailability.





3 SELECTED CLUSTER PROFILEThis section provides the brief description of the selected cluster of contiguous

villages/hamlets summarizing the demographic details of the cluster consisting of various

un-electrified and under-electrified villages/hamlets covered within it.

3.1 Hulasganj blockHulasganj is one of the seven blocks in the Jehanabad district located at south eastern corner

of district sharing border with adjoining districts of Gaya and Nalanda. It consists of nine

panchayats and 48 census villages with block headquarter located at Hulasganj. This region

was earlier part of Ghoshi block before division of Jehanabad district to form new district of

Arwal. As per 2001 census, there were in all 11,239 households with total population of

77,248.

The demographic details of Hulasganj block can be summarized as follows:

Total population of block is 77,248

There are 48 villages in 9 panchayats and has no town

Literacy rate is 55.53%. (Female - 39.97%. & Male 70.15%)

No of households in Hulasganj is 11,239. All households are rural.

Female to male ratio of Hulasganj 93.06% (compared to 91.93% of Bihar)

Total working population is 53.65% (63.0% men & 43.71% women)

Figure 3.1Map of Jehanbad di stri ct and Hu lasganj bl ock





Main working population is 36.58% (51.94% men & 20.24% women)

Marginal working population is 17.07% (11.06% men & 23.47% women)

Total non-working population 46.35% (37.0% men & 56.29% women)

3.2 Selected cluster for rural electrification through RE based DDG plantInitially five panchayats (out of total nine panchayats in the block) spanning from entrance

of the block after crossing Phalgu river from north-west corner till the block head quarter at

Hulasganj (upper north-west portion of block), had been short-listed for the formation of the

cluster of contiguous villages/hamlets (mix of un-electrified and under-electrified) for

preparation of DPR of proposed DDG plant (see Figure 3.2).

Figure3.2 M ap of Hul asganj Block, and short -l isted cl ust er i n t he Bl ock

However, during the field survey, while gathering the information about existing electricity

distribution system, it was observed that the villages in Murgaon Panchayat have been

connected through a different grid distribution line having generally good electricity supply,

whereas rest of the villages in the remaining four panchayats of the selected cluster of

Hulasganj block are connected to the common grid distribution line coming from Hulasganj

substation. Therefore, in the final configuration of selected cluster, villages under Murgaon

Panchayat were excluded from initially short-listed cluster consisting of five panchayats, so

as to have a homogenous cluster that can be coupled to a single substation grid distribution

network later.





It was also noticed that, a new substation is being constructed at Dhongra Mushari hamlet of

Tesaur village in Chiri Panchayat under RGGVY programme, which is likely to get ready in

near future. This substation is located almost at the middle of the selected cluster and

therefore can later very well be used to connect distribution network of proposed renewable

energy based grid interactive DDG Plant with the local distribution grid.

Thus, the finalized selected cluster now has 42 contiguous habitations (24 villages and 18

hamlets) comprising of both 25 under electrified (where BSEB and/or RGGVY grid line has

reached but annual average daily power supply is below 6hrs) and 17 un-electrified

habitations from four panchayats namely Bauri, Chiri, Khudaur, Kokarsa, and Murgaon,

have been considered to form the cluster for this DPR for proposed grid interactive

renewable energy based DDG plant. Figure 3.3 below, shows the map of the selected cluster

in the Hulasganj block and also gives details of existing power distribution network within

the selected cluster.

Figure 3.3 Schematic of selected cluster showing villages-hamlets & existing PDN details

The Table 3.1 below gives panchayat-wise list of census villages and respective associated

hamlets included in the selected cluster for this DPR reparation.





Table 3.1 Vi ll age & Haml et s in t he I denti fi ed Cluster

Chiri Panchayat Kokarsa Panchayat

Census Village Associated Hamlets Census Village Associated HamletsChiri Kokarsa

Dumri Mirjapur

SarmaManjhi Tola Sukiyawa

Ratan Bigha Lodipur

Sisara Rustampur Beldaripur

GinjiChaiti Pipar

Dhongra

Tesaur Dhongra Mushari Bauri Panchayat

Sarthua

Bulaki Bigha Census Village Associated Hamlets

Kolbhapur Bauri Kisunpur

Sevapuri Gidarpur

Bhattu Bigha Bihta

Dersai Bigha Rupa Bigha

Khudauri Panchayat Dihuri

Census Village Associated Hamlets Adrakhi Bigha

Khudauri Rampur Dadpur

Raghunathpur Harpur

NarmaEmitdpur Kewla

Beripur

Walipur

MoqueempurGolakpur

The selected cluster falls between longitude 85.1124036E to 85.1702535E and latitude

25.06028N to 25.1688536N spanning over four panchayats (Bauri, Chiri, Khudaur, and

Kokarsa). The total geographical area of villages included in the cluster is about

4,669 hectares and the total cluster population is 43,369 (as per census -2011) residing in

6,402 households. The average household income is of about Rs 3417/- per annum within

the selected cluster habitations.

3.3 Demographic details of selected clusterThrough extensive literature survey as well as through questionnaire based village/hamlet

level focus group discussions (FGDs) and sample household surveys, large amount of data-

information such as demographic data, census data, and village profile and biomass

availability has been gathered for villages/hamlets included in the selected cluster.

Following Table 3.2 summarizes the panchayat-wise information-data giving profile of

selected cluster of villages/hamlets in Hulasganj block of Jehanabad district. Panchayat-





village/hamlet wise profile information is summarized in the tabulated form in

Annexure A.

Tabl e 3.2 Demographi c Det ai l s of Sel ected Cl ust er

Parameters\Panchayat Bauri Chiri Khudauri Kokarsa ClusterTotal

Census Code 3773600 3771900 3773700 3775100

GPS Coordinates 25°3'56"N85°7'8"E

25°11'15"N85°8'5"E

25°7'6"N85°8'36"E

25°4'48"N85°7'42"E

No VillagesNo of HamletsTotal No of

villages/hamlets

64

10

710

17

63

9

51

6

2418

42

No of electrified (under-electrified) habitations***

6 9 5 5 25

No of un-electrifiedhabitations###

4 8 4 1 17

Village Area (ha) 881 1,532 1,099 1,157 4,669

Population-2001 census 7,497 9,744 8,585 10,391 36,217

Poulation-2011 census 9,881 11,551 9,876 12,061 43,369

No of HHs – as per survey 1,680 1,697 1,160 1,865 6,402

No of BPL HHs 887 879 610 660 3036

No of Non-BPL HHs 793 818 550 1205 3366

*** villages/hamlets where BSEB and/or RGGVY grid has reached but annual average daily power supplyis below 6hrs

### hamlets/ villages where grid has not reached so far

Main lively hood activities in the cluster are agriculture, service and labour work. The

distance of various villages/hamlets to the block head quarter Hulasganj ranges from 1-

6km, whereas that to district headquarter Jehanabad ranges from 8-11km. Almost all the

villages have approachable pakka tar road from district head quarter and block head quarter

leading to census villages and good approach roads to its associated hamlets.





4 CLUSTER ENERGY PLANThis session summarizes the details of energy plan of selected cluster of village. For evolving

successful energy plan for selected cluster it necessary to first gather information about

present electrification status (access and availability of electricity) and present energy

use/consumption pattern and prevailing expenditure on meeting electricity/lighting

requirement. For this purpose extensive field survey of villages/hamlets as well as selected

sample of its households was undertaken by team of trained experienced field surveyors.

Field survey team was given detailed orientation program and pilot field survey training as

a QAQC (quality assurance and quality control) measure prior to execution of survey.

Through extensive field survey viz focus group discussions at village/hamlet level as well

as household survey for confirming information gathered through focus group discussions

requisite information-data was collected in order to identify various types of loads and

estimation of energy demand for different categories of load (viz. Residential lighting,

community lighting, various commercial/productive loads, etc.). Information-data was also

gathered for assessing the potential renewable energy source available locally within the

selected cluster and assessing its availability in order to decide on viable capacity of RE

based DDG plant and sufficiency to meet the local energy demand.

This chapter gives brief summarized details of analysis of gathered information and data

about present energy use pattern, energy demand of the cluster as well as determination of

the required capacity of the proposed grid interactive RE based DDG plant for rural

electrification.

4.1 Present energy use patternThe selected cluster consists of 42 contiguous villages/hamlets in four panchayats namely

Bauri, Chiri, Khudaur, and Kokarsa in Hulasganj block of LWE district of Jehanabad in

Bihar. Out of these habitations electricity access is available in 25 habitations (mainly all

census villages except one) but are under electrified (with annual average daily power

supply of less than 6hrs), whereas the remaining 17 habitations (mainly hamlets except two

hamlets, which have not been covered under RGGVY so far) are still un-electrified. Grid

presence is there in these under-electrified habitations (villages/hamlets) with connectionsmainly to BPL families. The electricity has been supplied by the 11kV line from the

substation and then step down by the distribution transformers of suitable capacity of rating

of either 16kVA (under RGGVY scheme), 63kVA and 100 kVA. Presently the electricity

supply to the under-electrified census villages in the selected cluster is from Hulasganj

(which is also block head quarter) substation.





However, the supply of electricity is quite erratic and insufficient. Some villages get

electricity sometimes even for 10-15hrs, but only for few days in a month and that too

generally single phase so that they cannot operate any electrical appliance for productive

purpose or income generation activity. Overall availability of electricity on annualized basis

is in the range of 3-6 hrs per day. As a result villagers have to depend on kerosene for

lighting (as the power is generally unavailable during evening hours when required) and

sometimes have to buy it from open market in addition to monthly 2.5liter supply through

PDS at subsidized price. However unlike other parts of Bihar use of DG set by private

operator for evening lighting is not prevalent in this cluster. However, few households

(approx 15-20) have installed solar panels with battery charging facility.

Almost every 1 in 3 households have small diesel engine of 5-8HP which is used for

irrigation pumping and also for other motive power agriculture applications such as

thrashing, milling etc. All productive application in villages such as atta chakki, cane

thrasher, fabrication shops, oil expellers of the cluster operate on diesel.

Table 4.1 summarizes the information related to present electricity availability and energy

consumption pattern of the cluster.

Table 4.1 Electr i fi cati on Stat us and Pr esent Energy U sage in Sel ected Cl uster

Parameter\Panchayat Bauri Chiri Khudauri Kokarsa Cluster Total

No of un-electrified habitations 4 8 4 1 17

No of electrified habitations 6 9 5 5 25

Avg supply - Hr/day (annualized) 5.42 5.00 5.50 5.10 5.23

Avg supply – day/month (annualized) 17.50 15.38 19.60 18.80 17.50

Avg monthly elect charges in electrifiedhabitants (Rs/month)

93 106 95 95 97

Avg kerosene consumption (lit/month)(2.5 lit is subsidized through PDS)

4.55 4.76 4.78 5.25 4.79

Avg monthly expenses to supplementelectricity (Rs)

114 120 129 131 122

No of Atta Chakki 13 29 17 23 82

No Irrigation Pump Sets 349 507 417 820 2093

No of Rice Hullers/mills 5 43 20 0 68

No of Sugarcane thrashers/oil mills 2 2 2 9 15






Avg expenses on diesel usage(Rs/HH/month)

127 117 121 113 120

Avg monthly Income (Rs) 3206 3182 3828 3820 3417

Avg willingness to pay (Rs) 79 88 88 83 85

4.2 Estimation of load and demandIn this section effort has been made to identify various load requirements in the selected

cluster and energy demand against each identified load.

4.2.1 Residential load

Residential load consists mainly of lighting and other appliances like fan/radio/TV etc used

using point. It is assumed that, minimal of 2 CFLs (11W/18W) and one socket of 70W is

provided for all BPL families (and additional socket point of 50W is provided for APL

families) for using TV/fan/etc. From the survey data and information gathered about

households of the villages/hamlets within selected clusters, and with connected load of

100W and 150W per household for BPL and APL families respectively, the total residential

load works out to be 646.80 kW with assumption of reasonable load factor of 80%

(Table 4.2).

Table 4.2 Esti mati on of Residenti al Load Parameter\Panchayat Bauri Chiri Khudauri Kokarsa Cluster Total

No of House Holds 1680 1697 1160 1865 6402

No of BPL Households 887 879 610 660 3036

No of Non-BPL Households 793 818 550 1205 3366

Residential Load (kW)(with 80% load factor)

166.12 168.48 114.80 197.40 646.80

Note : Average BPL HH Load = 100W (2CFL:11W&18W + 1 socket of 70W) Average APL HH Load = 150W (2CFL:11W&18W + 2 sockets of 50W&70W)

4.2.2 Street light load

Here the number of streetlights required is estimated to be around 7% of the number of

households in the village/hamlet. Thus, the number of street lights required works out to

463, for the selected cluster having 6402 number of households residing in 42 habitations.

Therefore, with 11W CFL streetlight and 100% load factor the street light connected load

works out to 5.1kW (See Table 4.3).





Table 4.3 Esti mati on of Str eetl ight L oad


No of Households 1680 1697 1160 1865 6402

No of street lights(@7% of No of households)

121 125 84 133 463

Streetlight Load (kW)(11W CFL) 1.331 1.375 0.924 1.463 5.093

4.2.3 Community building load

For calculating the load of community building such as school, public health centre,

cooperative banks, panchayats bhawan/community centers etc. The details of community

buildings under different panchayats and estimation of community building load along

with assumptions is summarized below in Table 4.4.

Table 4.4 Esti mati on of Communit y Buildi ng Load


No of Schools 7 8 6 5 26

No of Health Centers 1 5 6 3 15

No of Panchayat Bhawan/

community centers

1 3 2 2 8

No of banks 0 0 1 1 2

Total No of community building 9 16 15 11 51

Community building load (kW) 9.45 16.8 15.75 11.55 53.55Note : Connected Load in community building like Health Centre /school/ Bank

No of fans: 7 (70W each), No of Tube Lights: 14 (40W each)Power consumption per community building: 1.05kW

4.2.4 Non-residential commercial load

Apart from residential lighting load and community building as well as street lights, the

major load demand observed during the survey is due to large number of diesel engines

presently being used for running numerous productive appliances like atta chakki, huller,

thrasher, oil expeller, cane thrasher, irrigation pumpset etc. Following Table summarizes

number of such potential electrical appliances under different panchayats. Details of

estimating non-residential productive loads are summarized below in the Table 4.5.

Table 4.5 Esti mati on of Non-Residenti al Producti ve Load

Parameter\Panchayat Bauri Chiri Khudauri Kokarsa Cluster TotalNo of Atta Chakki (8HP) 13 29 17 23 82

No of cane crusher/oil mills (10HP) 2 2 2 9 15

No of small rice hullers/mills (10HP) 5 43 20 0 68

Total load demand (kW)(with 50% load factor)

64.90 254.39 132.79 102.20 554.28

No Irrigation Pump Sets (5HP) 349 507 417 820 2093Connected load of irrigation pumpset (kW) 1301.77 1891.11 1555.41 3058.6 7806.89





Thus total non-residential load due to various productive applications, which are presently

being met by diesel engines, works out to 554.28kW with reasonable load factor of 50%.

It can be seen that the irrigation pumpset load, which is quite seasonal for very few number

of days, itself accounts for whooping 7807kW connected load. Therefore irrigation pumpset

load is neglected here and not envisaged to be served by planned RE based grid interactive

DDG plant, since such a large capacity power plant might not be feasible with available

biomass resource within the cluster and might not be attractive for private developers who

might be installing and operating it.

4.2.5 Sizing of RE based grid interactive DDG plant

The total connected load of the selected cluster, excluding seasonal irrigation pumpset load,

works out to be 1260kW (See Table 4.6). With different loads occurring at different time of

the day the anticipated peak demand would be occurring when major residential load

would be occurring during the evening peak hours along with street-lighting and some

other non-residential load. In the night time the small 5.1 kW street-lighting load would be

there throughout the night till morning hours. Since street-lighting load is much smaller

compared to other major loads it is envisaged that same can be met through battery storage

system coupled with 11W CFL (as used in standalone SPV streetlight systems), with battery

charging option with battery getting charged during the normal operating hours of the DDG

plant. Also in order to optimize on sizing of RE based DDG plant it is planned to cater

different category load during scheduled time zones. Thus, the residential load has been

considered for 6hrs duration i.e. from 05:00 hours to 07:00 hours in the morning and from

19:00 hours to 23:00 hours in the evening. In winter months both morning and evening

timing can be advanced by 1hr, if required. Remaining commercial and other loads

(panchayats bhawan, hospital, school etc), which can be catered during day time operation

of the plant for 6 hours viz 10:00 hours to 16:00 hours. This would give opportunity to

operate proposed RE based DDG power plant in three time slots or shifts i.e. 2 hrs in the

morning, 6 hrs in the afternoon and 4 hours in the evening giving short time gaps available

for daily routine maintenance.

Thus anticipated peak demand is of the order of 646.8kW during evening time when

residential lighting load would be served. With annual load growth of 5% for next five years

the peak demand would go up to 786.2kW. Thus required RE based DDG plant capacity

would be would be 1MW (1.25 times anticipated peak demand after 5yrs). Table 4.6 gives

the details of sizing of proposed RE based DDG power plant.





Table 4.6 Esti mati on of Total Cluster L oad and DDG Plant Size

Load Category Load (kW)

Residential Load 646.8

Street Lighting Load 5.1Community Building Load 53.6

Non-Residential Productive Appliances Load 554.3

Anticipated Peak Demand after Load Scheduling 646.8

Considering 5% annual growth rate, expected load 5yrs 786.2

Required DDG Plant Capacity (1.25 x peak load) 982.71000

Details of scheduling of different categories of load for optimization of plant size as well as

corresponding load curve are given in Table 4.7 and Figure 4.1 respectively.

4.3 Potential renewable energy resourcePotential renewable energy resources considered include

Hydro and wind resources are not considered due to non-availability within cluster

Solar energy (considered here only to meet low streetlight demand throughout the

night and not for meeting rest of the cluster load due to high and huge demand

including productive appliances)

Biomass resource (lot of agro-residue available within the cluster due main

agriculture activity in cluster, which is main livelihood source

Accordingly, biomass (agro-residue) gasifier technology seems to be most appropriateoption for DDG power plant considering locally available renewable resource in the and

possibility of installing modular nature of producer gas gensets to cater different load

demands as per load schedule during different time duration of the day.





Table 4.7 Hour ly scheduled load curve for sizi ng of RE based DDG pow er pl ant

Total Hourly Load Curve without Irrigation Load

kWhHourlyLoad Curve 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

3880.8ResidentialLoad

646.8 646.8 646.8 646.8 646.8 646.8

61.08StreetLight**

5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09

163.8 School 27.3 27.3 27.3 27.3 27.3 27.3

94.5 Hospital 15.75 15.75 15.75 15.75 15.75 15.75

50.4PanchayatBhawan

8.4 8.4 8.4 8.4 8.4 8.4

12.6CooperativeBank

2.100 2.100 2.100 2.100 2.100 2.100

3325.7

NonResidentialLoad(CommercialLoad)

554.278 554.278 554.278 554.278 554.278 554.278

7588.88 Total Load 0.0 0.0 0.0 0.0 0.0 646.8 646.8 0.0 0.0 0.0 607.8 607.8 607.8 607.8 607.8 607.8 0.0 0.0 646.8 646.8 646.8 646.8 0.0

** Streetlights load would be served by battery charging option with battery getting charged during the normal operating hours of the DDG plant. Alternatively, street

lighting can be provided with standalone SPV streetlight systems..





Figure 4.1 Hourl y l oad scheduli ng pattern in t he cluster





4.4 Assessment of Biomass AvailabilityAs mentioned earlier, biomass gasifier technology was deemed as a best possible

alternative for this cluster having a forest cover of around 221 ha (as per Census 2001).

A part of this land may have been encroached upon by the villagers for agricultural

purposes. For assessment of biomass availability for planned RE based DDG power

plant wood biomass from forest and waste land is not considered in order to avoid

possible further deforestation in future. Therefore assessment of biomass availability

for estimating potential power generation from this renewable energy resource has

been done based on agro-residue alone, which has been noticed to be available in

abundance during field survey.

The quantity estimation of the biomass (agro-residue) in the cluster has been done on

the basis of the cultivated land in the cluster used for the seasonal crop production.

Once the size of cultivated land is known in the cluster, the total crop production can

be calculated by the multiplying the average productivity of the land of the cluster.

This exercise gives the total quantity of crop produced in the cluster, the total biomass

which will be produced by the crop, can be estimated by the multiplying the quantity

of crop produce to the residue production ratio for the crop. The quantity estimated by

this calculation gives the total quantity of residue produced, in the cluster. If, quantity

of biomass produced in the selected cluster is more than the quantity required to fuel

the biomass gasifier plant then the cluster is suitable to set up the plant, from fuel

security point of view.

The analysis of the availability of biomass has been done on the basis of the data

collected by the village/hamlet survey for cultivated area under different crops as well

as secondary data for agriculture yield, crop-residue ration etc. Since as per the survey,

the total land available in the cluster is around 5031 ha, and for the production of

seasonal crop the total cultivated land is around 7500 ha (considering the yearly two

seasonal crop, so, the total irrigated land in the cluster works out to around 3500 ha).

While, as per the Census 2001, the area of village 4670 ha, and total irrigated land isaround 3330 Ha. The difference between the areas of cultivated land (as per survey

3750 Ha and as per census around 3500) provided by the survey and census is only,

250 Ha, which nearly 7%, the difference is not much. This difference can be attributed

to partly encroachment on government/wasteland. Since census 2001 data, which is

around 10 year old, therefore the primary survey data collected has been considered

for the estimation of the availability of agro-residue. The estimation of biomass





availability by the cultivation of different crops in the cluster has been summarized

below in Table 4.8, whereas Table 4.9 estimates the power generation potential.

The total power generation potential by the locally available biomass works out to

around 4MW. Taking conservative practical approach, considering the agro-residue

only from the rice crop (within cluster alone) in the form of rice husk, which relatively

has less demand in the region in absence of thermal process heat needing small scale

industry, the power generation potential has been estimated here. In case of any

shortage of biomass within the cluster, additional biomass required can be procured

easily from other residues and from adjoining areas within 10km radius where rice

cultivation and husk availability is quite sufficient.

It can be observed from the Table 4.9 that for 12hr planned operation of the power

plant, the rice husk available within the cluster itself can support 2.5MW, 2MW,

1.5MW and 1MW power plant with 100%, 80%, 60% and 40% agro residue (rice husk

alone) availability as renewable energy resource. Thus planned 1MW power plant can

be easily supported by rice husk produced alone even if 40% of husk produced within

the cluster becomes available for the plant operation.

Tabl e 4.8 Assessment o f RE resource (Biomass) Ava i l abi l i t y w i t hi n Sel ected Clust er

Biomass Available for Electricity Production (in Tonne)

Crop\Panchayat Chiri Bauri Khudauri Kokarsa Total

Rice 7901 3600 6656 3906 22062

Wheat 2850 1408 2902 1804 8964

Oil Seed 143 116 83 2 343

Sugarcane 1000 500 800 208 2507

Total Biomass (agro-residue) Production (in Tonne) 33,877

Cultivated Land in Cluster for Different Crop (in Bigha )Crop\Panchayat Chiri Bauri Khudauri Kokarsa Total

Rice 5300 2415 4465 2620 14800

Wheat 4140 2045 4215 2620 13020

Oil Seed 326 265 190 5 786

Sugarcane 240 120 192 50 602

Other Crop (Arhar) 15 60 300 5 380

Total Land (in Bigha) 29,588

Total Land (in Hectares) 7657





Table 4.9 Potent ial Capacit y for Pow er Generat i on

Agro-residueAgro-Residue

(TPA)Calorific Value

(kcal/kg)SFC

(kg/kWh)

Electricity Generation Potential (MW)(for 12 hr daily operation)

(for percent availability for power)100% 80% 60% 40%

Rice 22062 3000 2 2.52 2.01 1.51 1.01

Wheat 8964 3800 1.8 1.14 0.91 0.68 0.45

Oilseed 343 3800 1.8 0.04 0.03 0.03 0.02

Sugarcane 2507 3800 1.8 0.32 0.25 0.19 0.13

Total 33,877 4.02 3.21 2.41 1.61

Table 4.10 shows that the available biomass in the form of agro residue (mainly rice

husk) is quite sufficient to meet the electricity energy demand (in MWh) of the cluster.

Tabl e 4.10 Resource (Biomass) Feasi bil i t y Check

Parameter Data

Daily Electricity Demand in kWh(From Load Curve Table)

7,588.88

Requirement of Annual Electricity Generation- toSupply Cluster Load (in kWh/yr)

2,7699,941

Biomass requirement (@2kg/kWh) (in TPA)5,540

Rice husk production within cluster (TPA) 22,062

Since, Available Agro-Residue in Cluster is Far More Than

the Requirement so, Operation of Biomass Plant of Proposed Capacity Feasible

Even under the case of potential extended operation of pr proposed power for 16

hours per day to have benefit due to economies of scale of power generation, the

annual electricity generation would work out to to 52,56,000 units on full load i.e. with

the consideration of 100% PLF. Thi will require the biomass of the order of 10,512 TPA

(@2kg/kWh) availability of which would be still sufficient, as the estimated rice husk

production within the cluster is 22,062 TPA, as can be seen from Table 4.10.





5 RE BASED GRID INTERACTIVE DDG PLANTThis section gives details of proposed RE based grid interactive DDG plant for

electrification of selected cluster of 42 habitations in Hulasganj block of Jehanabad

district. As mentioned earlier the biomass gasification based grid interactive power

plant of 1MW size is proposed here for catering various categories of loads within the

cluster both residential and non-residential (community buildings/establishments,

productive appliances/commercial enterprises etc). However, in order to optimize on

sizing and thereby on capital investment and operation of huge capacity power plant

for small streetlight load throughout the night, it is decided to cater this load by stand

alone SPV based streetlight systems. Alternatively street lighting load also can be met

through battery storage system for night operation when power plant would not be

working and battery can be kept charged during day time operation of the powerplant; as streetlight load is very small.

5.1 Biomass Gasification TechnologyBiomass gasification is a process of converting solid biomass fuel into gaseous

combustible gas (called producer gas) through a sequence of complex thermo-

chemical reactions. In the first stage partial combustion of biomass to produce gas and

char occurs along with generation of heat. This heat is utilized in drying of biomass to

evaporate its moisture as well as for pyrolysis reactions to bring out volatile matter

and provide heat energy necessary for further endothermic reduction reactions toproduce producer gas which mainly consists of mixture of combustible gases such as

CO (carbon monoxide), hydrogen (H2) and traces of methane (CH4) and other

hydrocarbon.

Normally air is used as gasifying agent; however use of oxygen can produce rich

higher calorific value gas but due to cost implications is not usually preferred. Typical

volumetric composition of producer gas is as follows.

Carbon monoxide : 18%–20%Hydrogen : 15%–20%

Methane : 1%–5%

Carbon dioxide : 9%–12%

Nitrogen : 45%–55%

Calorific value : 1000–1200 kcal/Nm3





The clean producer gas obtained through gasification of biomass in gasifier can be

used for electrical power generation, either through dual-fuel IC engines (where diesel

oil is replaced to an extent of 60%–80%), or through 100% gas-fired spark ignition

engines. Typically 1kg of air dried biomass produces about 2-2.5 Nm3 of combustible

producer gas. Approximately 1.5 to 1.8 kg biomass is required to produce 1kWh of

electricity.

What can be gasi fi ed:

Most commonly available gasifiers use wood/woody biomass; some can use rice husk

as well. Many other non-woody biomass materials can also be gasified. These include

mustard stalks, and residual stalks of various agricultural crops like corn, flower

stems, cashew nut shells, lantana, coconut shells, and briquettes of residues like

sawdust, coir pith, groundnut shells, rice husk, etc. Although gasifiers have to be

specially designed to suit these materials and the biomass may have to be compacted

in many cases. Therefore briquetted biomass (with bulk density more than 400-600

kg/m3) can be used to enhance multi-fuel capability of gasifier.

A biomass gasifier based 100% producer gas (modified diesel) engine power

generation system normally consists of:

A biomass gasifier that converts biomass into combustible producer gas

A gas cooling-cleaning train that cleans and cools the gas so that it can be safely

used in engine, and

A gas (modified diesel) engine generator system capable of operating on 100%

producer gas mode.

Gasifi er ty pes:

Gasifiers can be of ‘updraft’ or ‘downdraft’ types, the latter is preferred for power

generation as it gives relatively clean gas (low tar). In a typical downdraft gasifier, fuel

and air move in a co-current manner. In updraft gasifiers, on the other hand, fuel and

air move in counter-current manner. However, the basic reaction zones remain the

same. Fuel is loaded into the reactor from the top. As the fuel moves down, it issubjected to drying and pyrolysis. Air is injected into the reactor in the oxidation zone,

and through the partial combustion of pyrolysis products and solid biomass, the

temperature rises to 1100°C. This helps in breaking down heavier hydrocarbons and

tars. As these products move downwards, they enter the reduction zone where

producer gas is formed by the action of carbon dioxide and water vapour on red-hot

charcoal. The hot and dirty gas is passed through a system of coolers, cleaners, and





filters before it is sent to engines. A schematic diagram for the operation of biomass

gasifier is shown below:

Figure 5.1 Schemat i c D iagram for Bi ogasi fi er

Majority of commonly available gasifiers use wood/woody biomass as fuel, while

some can use rice husk also. Many other non-woody biomass materials can also be

gasified, although gasifiers have to be specially designed to suit these materials

and/or available biomass can be pre-processed through chopping, pulverising andcompaction (briquetting) to convert them into more uniform size and shape.

Producer gas engi nes

For power generation, producer gas can be used in IC (internal combustion) engine.

Existing petrol (Otto Cycle) or spark ignition (CI) engines can be used but normally

they operate on lower compression ratio (and hence with lower efficiencies) and also

results in large derating when operated on low heating value producer gas. Therefore,

normally diesel engines are preferred for the use of gas in engine operation as they

normally operate with a higher compression ratio and excess air levels resulting inreduced derating. Existing diesel engines can easily be operated on dual fuel (diesel +

gas) mode (70-80% gas and 20-30% diesel). The development of a modified diesel

engine capable of operating on 100% producer gas has been initiated at several

research institutes. The engine modification basically involves:

• Modifying piston and/or cylinder head to reduce the compression ratio

• Replacing diesel injectors with spark plugs





• Using a diesel pump governing mechanism for spark distribution

• Adjusting the spark ignition timing

Several engine manufacturers are now supplying engines for 100% producer gas

operation by either modifying diesel engine or using natural gas engines.

5.2 Site RequirementWhile the power plant site area will be decided after getting clearance, about 1-

2 acres of land could be allocated to the Biomass Power Plant so as to house the

Power Plant in less than 2000 square meters and the balance area could be used

for the storage (keeping stock for few days) and handling of biomass. Some

areas within the power plant could also be left open for development of greenbelt as that may be desired. The site could ideally be selected as close to the

households for electrification.

5.3 Requirement of BiomassThe primary fuels/biomass intended to be used is Fine Biomass like Rice Husk. Thus

availability of Rice Husk on a sustainable basis does not seem to be a problem. Rice

Husk planned to be used as biomass on as is basis without the need of briquetting but

with moisture content less than 10% before feeding and devoid of any foreign

contamination like dust, dirt, stone, chips or any other. The indicative consumption of

Rice Husk would be about 1.8 ± 0.2 kgs /kWhr.

Sufficient storage facility needs to be created at the power plant location or any other

place nearby for smooth operations. This is specially required in the view of seasonal

availability of the agro-residue (biomass resource) during harvesting season. Storage

area in the project site would have to be decided depending on the agreements with

the potential biomass (rice husk) suppliers such as hullers, rice mills, etc and

accordingly sufficient area would need to be allocated for storage of the sufficient

stock of rice husk to take benefit of their low prices during harvesting season.

Approximate indicative area required for storage of rice husk considering its low bulk

density of the order of 100-150 kg/m3 is given below in Table 5.1.





Tabl e 5.1 Space requi rement for Bi omass St orage

No of days for RiceHusk Storage

Approx. Tons ofRice Husk

Indicative area required for storage

Length Width Height

10 500 35 35 3

15 735 50 35 3

30 1470 70 50 3

45 2200 75 70 3

60 3000 90 80 3

5.4 Proposed DDG plant siteIt has been noticed that at Dhongra Mushari Hamlet of Teasur village in Chiri

Panchayat, one new substation is being constructed. This is incidentally located almost

in the middle of the selected cluster. During the focus group discussions with the

villagers a plot (suitable for proposed RE based DDG power plant) was identified. The

said plot is a government wasteland and can be easily made available by the

Government for any useful purpose for the development of the region. The details of

the identified plot are as follows:

Table 5.2 Detai ls of the Land Av ail able for t he DDG Plant i n the Cluster

Name of Village Hamlet Dhongra Mushari

Name of Census Village Tesaur (Census Code 3774400)

Name of Panchyat Chiri (Census Code 3771900)

Plot No 2640/2650

Khata No 335

Plot Area 24.87 acres

Type of Land Government Wasteland

It was informed locally that, the identified proposed DDG plant site land is

owned by the government and it is having enough area for setting up the

renewable energy based DDG plant.

5.5 Specifications for biomass gasifier based DDG plantThe following are suggestive specifications of proposed 1 MW capacity biomass

gasifier based power plant.

Tabl e 5.3 Speci fi cati ons and perfo rmance parameter of gasifi er based pow er pl ant

Biomass Gasifier

Gas gasifier type Downdraft

Rated gas flow (Nm3/hr) 1912.5

Rated thermal output (Kcal/hr) 2,008,125

Fuel consumption (kg/hr) 765-1020





Table 5.4 Proj ect cost of t ypi cal 1MW gasi fi er based power pl ant

Item Description Basic Price in (Rs)

Biomass pre-processing and conveying system 1,570,000

Gasifier & Related Accessories (set of 2 Nos)Gasifier, Gas cleaning-cooling systems, Cooling towers, chillers,etc with PLC based control pannels

22,835,000

Producer gas (100%) engine (set of 4 Nos) 23,000,000

Cooling towers for gas engines 1,025,000

Building cost for housing power plant 6,000,000

Sub-total capital cost 54,430,000

Capital Cost (including 2% CST against Form C) 55,518,600

Installation-commissioning of engines 800,000

Gasifier-engines integration 1,150,000

Freight and insurance cost (approx) 2,000,000

Sub-total installation-commissioning cost 39,50,000

Sub-total installation-commissioning including 12.36% service tax 4,438,220

Total Power plant cost 59,956,82060,000,000





Indicative Layout of proposed Biomass Gasifier based DDG Power Plant is as follows:

Figure 5.3 Schemat ic D iagram proposed biomass Gasifi er Pow er Pl ant





5.8 Streetlight SystemSince the street light load is relatively very small and need to be served throughout the

night time, it is planned to be provided by using battery storage system coupled to11W CFL lamp (as used in SPV streetlight module) for streetlight. These batteries can

be kept charged during the day time using power plant operation. This would avoid

RE based large MW level power plant operation at very low PLF and help scheduling

its operation for three short duration batches of 2hr in morning for residential lighting,

6 hrs in day time for commercial and other loads and 4hrs in evening for residential

load respectively; giving opportunity to operate proposed RE based DDG power plant

in three time slots or shifts giving short time gaps available for daily routine

maintenance.

Details of number of street lights required for the selected cluster works out to 463

(@7% number of households in each habitation viz village/hamlet) as shown in

Table 4.3.

Alternatively if possible and feasible in prevailing scheme, a standalone SPV

streetlight system of following specifications can also be used.

SPV module – 75Wp capacity

Battery: 12V, 75Ah rating

Streetlight: 11W CFL or later LED lamp if becomes cheap in near future.

With prevailing price of 12-14 thousand rupees, for standalone SPV streetlight of 11W

capacity, the total cost for standalone SPV Street-lighting System works out to the tune

of Rs 60 Lacs towards SPV panel, battery and CFL bulb.

Though nowadays LED based lighting systems are becoming popular even at slightly

(about 1-3 thousand rupees) cheaper than CFL bulb (due to lower panel size

requirement), presently 11W CFL based streetlights are proposed here considering

cheaper replacement of bulbs in rural areas. However, in future if LED bulb becomes

more cost effective same can be used as they can result in longer back up duration.





6 POWER DISTRIBUTION NETWORK (PDN)

As mentioned earlier the cluster consists of 24 villages (42 contiguous habitation) inHulasganj block, comprising both un-electrified (where grid has not reached yet) as

well as under-electrified (where though the grid has reached but the daily power

supply is less than 6hrs on annualized basis) villages/hamlets. This section gives

detailed account of assessment carried out for the requirement of planned PDN for

rural electrification of selected cluster using proposed RE (biomass gasifier) based grid

interactive power plant.

As a first step based on the load demand estimation carried out in earlier section,

village/hamlet wise assessment of transformer capacity and the PDN length is worked

out. Efforts are made to gather as much details of existing PDN (no of DT of different

capacity and length of LT line existing) within the cluster as possible through

consultation with concerned officials in the block and lineman as well from RGGVY

database. Based on the analysis of gathered information an assessment is made with

regard to augmentation need of existing grid in under-electrified villages/hamlets as

well as extension of the grid in un-electrified villages/hamlets of the cluster.

The 42 habitations (villages/hamlets) included in the selected cluster consists of 24

census and 18 associated hamlets falling under four Panchayats (namely Bauri, Chiri,

Khudaur and Kokarsa) of Hulasganj block of LWE district of Jehanabad in Bihar. The

power supply is mainly from 33kV/11kV substation located at block head quarter of

Hulasganj. The substation has two transformers each of 3.15 MVA capacity and the

outgoing 11kV feeders from the substation supply the power to the (under)electrified

villages/hamlets of the cluster. Though main categories of the loads in the cluster

include agriculture, residential and commercial, the existing PDN is able to cater only

residential load for very few hours that too generally when not needed. As a result

villagers are required to use alternate options to meet their electricity needs viz

kerosene for lighting, diesel to energize agriculture pumpsets and other productive

appliances like aatta chakki, mill, huller, thrasher etc. As mentioned earlier, the power

requirements for the seasonal agriculture pumpset would result in huge connected

load to RE based power plant it has not been envisaged to be covered under the

proposed biomass gasifier based power plant in the cluster.





be installed works out to around 0.8 MVA. Since, DTs are manufactured with standard

sizes/ratings, so the DT of rating next to the estimated size is considered. The total

capacity of DTs needs to be installed works out to around 1.0MVA. It is estimated that25 DTs of different capacities need to be installed in the different villages/hamlets in

order to meet the power requirement of the cluster as summarized in Table 6.2.

Tabl e 6.2 Capaci t y w i se Requi rement of DTs

Size of DistributionTransformer

No of DTs Required in theCluster

10 kVA 6

16 kVA 4

25 kVA 5

63 kVA 6

100 kVA 4

Total No of DTs Required 25

6.2 Distribution Line RequirementAs per the data collected under the RGGVY for the 22 villages by the field survey and

website, the total length of completed three phase 11kV line is around 16.82 km and

the length of 400V single phase LT line is around 8.04 km. In addition to this, 8.58 km

Arial Bunched Cable (ABC) of 400V for the single and 0.32 km three phase line has

also been installed under RGGVY in the villages. Under the RGGVY it has been

proposed to erect total of 42 km of 11kV line and 21 km of 400V LT line for the 22

villages covered in the cluster.

Table 6.3 represents the installed and required capacity of DTs in the habitations of the

cluster. 17 habitations are having suitable capacity of DTs and 17 habitations are un-

electrified, while the DT capacity of the remaining 8 habitations needs to be

augmented to meet the future power demand.

The existing network of the 11kV line in the cluster, is supplying the power from the

33kV/11kV Hulasganj substation to the village/hamlet Distribution Transformer. The

existing Power Distribution Network (based on the data available) of the four

panchayats covered in the cluster is schematically presented below in Figure 6.1,

which shows the village/habitation wise required and installed capacity of

Distribution Transformers, on the basis of the estimated load demand based on field

survey data.





able 6.3 Requirement of Di stri buti on Transformer Capacit y

Sr

No

Panchayat Village Habitation

Capacity ofRequired DTafter 5 Years

(Taking PowerFactor 0.8)

Total InstalledCapacity

(IncludingRGGVY)

Capacity ofDT need to

be Added

Rating of ProposedTransformer

(The Next Standard

Rating of theTransformer)

1

Chiri

Chiri Chiri 97 116 -19 0

2 Dumri Dumri 108 48 60 63

3

Sarma

Sarma 63 48 15 16

4 Manjhi Tola 5 0 5 10

5 Ratan Bigha 1 0 1 10

6 Sisara Sisara 132 32 100 100

7

Ginnji

Chaiti Pipar 20 0 20 25

8 Ginnji 33 48 -15 0

9 Dhongra 36 63 -27 0

10Teasaur

Teasaur 33 64 -31 0

11

DhongraMushari 20

164

10

12

Sarthua

Sarthua 15 48 -33 0

13 Sevapuri 17 0 17 25

14 Bhatu Bigha 23 0 23 2515 Bulaki Bigha 22 0 22 25

16 Desai Bigha 15 0 15 16

17 Kolbhapur 27 0 27 63

18

Bauri

Bauri

Bauri 126 48 78 100

19 Gidarpur 35 0 35 63

20 Kisunpur 12 0 12 16

21 Rupa Bigha 44 0 44 63

22Dadpur

Dadpur 47 116 -69 0

23 Adhikari Bigha 9 0 9 10





SrNo

Panchayat Village Habitation

Capacity ofRequired DTafter 5 Years

(Taking PowerFactor 0.8)

Total InstalledCapacity

(IncludingRGGVY)

Capacity ofDT need tobe Added

Rating of ProposedTransformer

(The Next StandardRating of theTransformer)

24 Harpur Harpur 6 16 -10 025 Bihta Bihta 24 32 -8 0

26 Dihuri Dihuri 42 32 10 10

27 Kewla Kewla 19 16 3 10

28

Khudauri

KhudauriKhudauri 51 132 -81 0

29 Rampur 65 0 65 100

30 Raghunathpur Raghunathpur 34 100 -66 0

31

Narma

Narma 77 132 -55 0

32 Emitpur 35 95 -60 0

33 Benipur 16 0 16 16

34 Mokimpur Mokimpur 58 79 -21 0

35 Walipur alipur 34 0 34 63

36 Golakpur Golakpur 29 0 29 63

37

Kokarsa

Kokarsa 244 148 96 100

38 Mirzapur 63 116 -53 0

39 Sukiyawan 36 116 -80 040 Lodipur 22 32 -10 0

41 Rustampur 86 95 -9 0

42 Beldaripur 21 0 21 25





Figure 6.1 : Confi gurati on of Di stri buti on Transformers

33 / 11 kV Hulasganj Substation 33 kV Incoming from Hulasganj Substation

2 X 3.15 MVA ( 33 kV / 11 kV)

11 kV Outgoing to Panchayats / Villages / Hamlets

Chiri0 kVA

Ginji0 kVA

Manjhi Tola1 0 kVA

Ratan Bigha10kVA

Tesaur0 kVA

Sarthua0 kVA

Sevapuri25 kVA

DhongraMushri 10 kVA

BhatuBigha25 kVA

Kolabhpur63 kVA

Bauri100 kVA

Gidarpur63 kVA

Kishanpur16 kVA

AdhikariBigha16 kVA

Mokimpur25 kVA

Mirzapur0 kVA

Emitpu0 kVA

Benipu16 kVA

Beldaripu25 kVA

Harpur0 kVA

Raghunathpur0 kVA

Bihta10 kVA

Sarma16kVA

Sisara100 kVA

Dihuri10 kVA

Kokarsa100 kVA

BulakiBigha25 kVA

DesaraiBigha16 kVA

Rampu100 kVA

Walipur63 kVA

Golakpur63 kVA

Rustampur25 kVA

Lodipur0 kVA

Chaiti Pipar25 kVA

Narma0 kVA

Dhongra0 kVA

No Change is Required

Required New DT Installation

Required Capacity

Au mentation

Required Capacity Augmentation

Dumri63 kVA

Dadpur0 kVA

Sukiyawan0 kVA

Khudauri0 kVA

RupaBigha63 kVA

Kewla10 kVA





6.3 PDN Cost EstimationThis section gives detail cost estimation of Power Distribution Network (PDN) for the

installation of new network for the un electrified 17 habitations and strengthening of

the existing PDN of under electrified 8 habitations. The major cost components of PDN

include the cost of Distribution Transformers (DTs), cost of 11kV and 400V LT line.

6.3.1 Cost Estimate of Distribution Transformers

Distribution Transformer is a vital link in supplying the power at 400V, in power

distribution network. Depending upon the power requirement of the area, size of

Distribution Transformer is decided. It is very much necessary to decide the capacity

of Distribution Transformer of sufficient capacity, to cater the increasing load. Based

on assessment of load demand based on field survey the necessary size of the DTs has

been calculated for all the 42 habitations. During the field visit, information gatheredabout existing PDN. In DT sizing calculation, it is found that 17 habitations are having

sufficient installed capacity of DTs, while DTs of 8 habitations required capacity

augmentation to cater the village/hamlet’s growing load and for remaining 17 un-

electrified villages/hamlets installation of new DTs is required. The total capacity

requirement of DTs in the cluster works out to around 1.0 MVA, which will cost

around Rs 58.24 Lacs. Table 6.4 provides the details of the required DTs,

Table 6.4 Cost esti mat i on of capaci ty addit i on of DTs required in t he cluster

Size of DistributionTransformer

Total Requirementin Cluster

Capacityof DTs

Unit Cost of DT(with Installation Cost)

Total Costof DT (Rs)

10 kVA(Cu Winding)

6 60 1,80,000 10,80,000

16 kVA(Cu Winding)

4 64 2,00,000 8,00,000

25 kVA(Cu Winding)

5 125 2,25,000 11,25,000

63 kVA(Al Winding)

6 378 2,75,000 16,50,000

100 kVA(Al Winding)

4 400 3,20,000 12,80,000

Total No ofDTs required 25 1027 Total Costof required DTs 59,35,000





6.3.2 Cost of Distribution Lines

11 kV LineThe power shall be distributed from the substation to the villages/hamlets by 11kV

line in the indentified cluster. At present, the power supply in the villages/hamlets in

the cluster is from the 33kV/11kV Hulasganj substation. In order to meet the growing

power demand of the cluster an additional 33kV/11kV substation is proposed for

construction at Dhongra village. This new upcoming substation will feed the cluster’s

power demand by two power transformer of capacity 5 MVA. It is assumed that, to

cater the growing power demand of the cluster, approximately 30 km long new

network of 11kV line will be sufficient. With per km cost of 11 kV line network in the

cluster is estimated at Rs 7,35,000 per km, with Raccoon Conductor with all theaccessories (e. g. pole, insulators, foundation etc), the approximate cost for the 11kV

network in the cluster works to around Rs 220.50 Lacs.

Table 6.4 Cost Estimat ion of 11 kV Li ne in Cluster

ParticularsTotal Line

Requirement(in km)

UnitCost

Cost(in Lacs)

11 kV Line(11 kV line on 152 X 152 mm, 37.1 kg/Mtr. 11 MtrLong H-Beam with Raccoon conductor averagespan of 70 mtr)

30 7,35,000 220.50

Cost of 400 V Line

In order to supply the power in the un-electrified and under-electrified

village/hamlets of the cluster, it will be required to installed new network or upgrade

the existing distribution network of 400V to feed the growing power requirement. 400

V Arial Bunched Cable or Line can be considered for Power Distribution.

400 V Overhead Arial Bunched Cable (ABC Cable)

400 V Overhead Rabbit and Weasel Conductor Line

ABC Line is being preferred more nowadays, as it minimises the possibility of the

electricity theft, but it costs significantly high as compared to the Line. It is envisaged

that, 400 V distribution network of around 3 km, shall be sufficient for power

distribution in the Village/Hamlet. As mentioned earlier 17 villages/hamlets are

having sufficient DT capacity, so it is assumed that, these villages shall have sufficient





capacity of power distribution network in the village and additional 400 V distribution

network shall not be required. Out of remaining 25 villages/hamlets, 17 need to be

electrified afresh and 8 need to be upgraded. Following Table 6.5 gives the indicative

cost estimation of 400V Distribution Network using both Cable and Line options.

Table 6.5 Cost Esti mat ion of 400V PDN Li ne in Cl ust er

Particulars

Assumed Length ofLine & Cable for One

Village/Hamlet(in km)

UnitRequirement

in Cluster

OverallCapacityRequired

Perkm

Cost

TotalCost(in

Lacs)

Cost of PDN with 400 V Cable

Cost of 400 V Cable to beerected in un-electrifiedvillages

3 17 51 650000 331.5

Cost of up gradation of

400 V line to cable (inunder-electrified villages)

3 8 24 340000 81.6

Total Cost of PDN with 400 V Cable 413.1Cost of PDN with 400 V Line

Cost of 400 V line to beerected in un-electrifiedvillages

3 17 51 185000 94.4

Cost of up-gradation of400 V line network (inunder-electrified villages)

3 8 24 120000 28.8

Total Cost of PDN with 400 V Line 123.2

Total Cost of Distribution Network

The total cost of the PDN infrastructure consists the following costs1. Cost of Distribution Transformers2. Cost of 11 kV Network3. Cost of 400 V Network4. Cost of Grid Connectivity of DDG Plant

The cost of grid connectivity has been considered, the cost of Generator Transformer,Construction of Substation at power plant, Cost of Transmission Line, Metering andprotection equipment etc. The total PDN cost estimate has be summarized below inTable 6.6.

Table 6.6 Cost Esti mat e of Tot al PDN I nfrastructure of Cl uster (in L acs)

ParticularsAmount (Rs Lacs)

400V Line 400V Line

Cost of Distribution Transformer 59.35 59.35

Cost of 11 kV Network 220.5 220.5

Cost of 400V Network 413.1 123.2

Cost of Grid Connectivity of DDG Plant 80 80.0

Total Cost 773.0 483.0





7 FINANCIAL ANALYSIS OF PROPOSED RE BASED DDGPOWER PLANT

This chapter presents the detailed financial analysis of the proposed RE based DDG

Plant to arrive at cost of electricity generation. This would help in assessing the

financial feasibility of the project and if not feasible, would help in estimating the

viability gap under different project scenarios. The sensitivity analysis has also been

carried out to assess the impact of selected critical parameters like biomass fuel price,

consumer category mix, etc. under different capital subsidy options.

7.1 Cost of Electricity GenerationThis section presents the details of financial analysis carried out for proposed 1MW

biomass gasifier based grid interactive power plant for electrification of the selected

cluster. In order to determine the cost of electricity generation, the capital cost of

proposed gasifier based power plant alone has been considered. The cost of Power

Distribution Network (PDN) or augmentation of existing PDN within the cluster has

not be taken into account as the proposed project would be essentially operating as

power augmentation at the tail end of PDN for rural electrification. PDN would be

DISCOM’s asset and its cost would be either born by the DISCOM or would be

financed under separate scheme/programme. Similarly the cost of standalone street

lighting through SPV has not been considered here as it would be for community

purposes requiring one time capital expenditure and power would neither be

distributed nor billed by the project developer.

The typical investment for biomass gasifier based power plant with specifications

mentioned earlier works out to about Rs 60,000/- per kW (See Table 5.4). Thus, the

cost of the proposed 1MW gasifier based power plant is considered as Rs 600 Lacs.

This excludes PDN to be developed by the DISCOM. It is presumed that the project

developer would design, build, and operate the renewable energy based grid

interactive power plant while DISCOM shall build and operate the network for

distribution of electricity to rural consumers and would own PDN asset. All the

financial and fuel related assumptions, operation and maintenance, working capital,etc. have been adopted from the Central Electricity Regulatory Commission (Terms

and Conditions for Tariff determination from Renewable Energy Sources) Regulations

2012. The various parameters and assumptions considered while carrying out the

financial analysis of biomass gasifier based power plant for rural electrification project

are summarized below in Table 7.1.





Similarly the biomass (rice husk) price has been assumed at around Rs 1000 per ton

which is quite likely within cluster, considering the absence of competing usage

(general cause for price rise due to high opportunity cost) by industries requiring it for

meeting process heat requirement. (Refer Annexure B).

Keeping into consideration the aforesaid facts and parameters, the plant shall generate

annually about 2,747,635kWh, as the net energy for distribution in the identified

cluster and the total cost of generation of electricity from proposed biomass gasifier

based power plant works out to Rs 9.21 per unit and Rs 5.94 per unit without and with

90% capital subsidy respectively. The Table 7.2 below gives detailed bifurcation of cost

of generation of electricity for levelized cost over plant life time of 20 years as well as

that for the first and twentieth year.

Table 7.2 Cost of generat i on (COG) of el ect ri ci ty from biomass gasi fi er pow er pl ant

Particulars

COG (Rs/kWh): Without Subsidy COG (Rs/kWh): With 90% Subsidy

LevellizedTariff

Year 1 Year 20Levellized

TariffYear 1 Year 20

Fuel (Biomass) cost (A) 3.03 2.22 5.62 3.03 2.22 5.62

O&M Expenses (B) 2.31 1.62 4.65 2.31 1.62 4.65

Interest on working capital (C) 0.30 0.24 0.49 0.24 0.18 0.46

Depreciation charges (D) 1.18 1.30 0.56 0.12 0.13 0.06

Interest on term loan (E) 1.00 1.83 0.00 0.10 0.18 0.00

Return on Equity (F) 1.39 1.33 1.60 0.14 0.13 0.16

Fuel cost alone (A) 3.03 2.22 5.62 3.03 2.22 5.62

Operating Cost (A+B+C) 5.64 4.08 10.75 5.58 4.02 10.72

Total COG (A+B+C+D+E+F) 9.21 8.54 12.91 5.94 4.46 10.94

Under the case of potential extended operation of the proposed power plant for 16

hours per day with the time slots of 4 hours each, and with the full load i.e. PLF of

100%, the cost of generation of the plant comes out to Rs 5.19 per unit at the fuel price

of Rs 1000 per tonne, and the units generated by the power plant comes out to

53,56,000 kWh per year.

7.2 Sensitivity AnalysisIn this section, sensitivity analysis carried out for the identified parameters related to

the operations of biomass gasifier based power plant for electrification of selectedcluster is presented. Following operational parameters have been considered for this

purpose,

Input Cost – Price of biomass (e.g. rice husk) 1000 to 2476 Rs/ton

Different consumer mix (domestic and commercial) (40:60 to 90:10)

Variations in Capital Subsidy (0 and 90% subsidy)





In order to assess the viability gap under various scenarios, the prevailing domestic

and commercial rural area tariff has been taken as Rs 1.80 and Rs 2.10 per unit as

specified by the Bihar Electricity Regulatory Commission in its order on Aggregate

Revenue Requirement (ARR) and Tariff for FY 2012-13. Annual average escalation of

5% in tariff is assumed over the plant life time of 20 years. The levelized tariff over the

lifetime of the project was calculated for pre-defined mix of consumption by domestic

and commercial categories of consumers.

The findings of the sensitivity analysis and the estimated viability gap (the gap

between the levelized cost of generation and the retail tariff of the distribution

licensee) under different scenarios are summarized below in Table 7.3.

Table 7.3 Cost of generat ion (COG) and Vi abil it y Gap under di fferent scenari os

Consumer

Mix

Levelized

Tariff

Fuel

Price

0% Capital Subsidy 90% Capital Subsidy

Cost of

Generation

Viability

gap

Cost of

Generation

Viability

gap

Dom:Comm Rs/kWh Rs/MT Rs/kWh Rs/kWh Rs/kWh Rs/kWh

40:60 3.27 2476 13.9 10.63 10.63 7.36

40:60 3.27 2000 12.39 9.12 9.12 5.85

40:60 3.27 1500 10.8 7.53 7.53 4.26

40:60 3.27 1000 9.21 5.94 5.94 2.67

60:40 3.17 2476 13.9 10.73 10.63 7.46

60:40 3.17 2000 12.39 9.22 9.12 5.95

60:40 3.17 1500 10.8 7.63 7.53 4.36

60:40 3.17 1000 9.21 6.04 5.94 2.77

70:30 3.12 2476 13.9 10.78 10.63 7.51

70:30 3.12 2000 12.39 9.27 9.12 6.00

70:30 3.12 1500 10.8 7.68 7.53 4.41

70:30 3.12 1000 9.21 6.09 5.94 2.82

80:20 3.07 2476 13.9 10.83 10.63 7.56

80:20 3.07 2000 12.39 9.32 9.12 6.05

80:20 3.07 1500 10.8 7.73 7.53 4.46

80:20 3.07 1000 9.21 6.14 5.94 2.87

90:10 3.02 2476 13.9 10.88 10.63 7.61

90:10 3.02 2000 12.39 9.37 9.12 6.10

90:10 3.02 1500 10.8 7.78 7.53 4.51

90:10 3.02 1000 9.21 6.19 5.94 2.92

It can be observed from Table 7.3 that even with the prevailing low biomass price of

Rs 1000 per tonne and consumer mix of 40:60 (domestic : commercial) the viability gap

is Rs 5.94 per unit which reduces to Rs 2.67 per unit even with 90% capital subsidy.

With increasing price of biomass upto Rs 2476 per tonne (as specified in CERC 2012

regulations) the viability gap increases further to Rs 10.63 and Rs 7.36 per unit,





without and with 90% capital subsidy respectively. The viability gap for the consumer

mix of 90:10 (domestic: commercial) increases to Rs 10.88 and Rs 7.61 per unit, without

and with 90% capital subsidy respectively.

Thus the financial and sensitivity analysis makes it clear that even with best available

biomass price, good consumer mix and even with 90% capital subsidy provision, huge

viability gap exists with prevailing low DISCOM tariff. Thus there is a need to adopt

innovative implementation mechanism for ensuring private sector participation for

rural electrification through grid interactive RE based DDG power plant to ensure

long term financial sustainability.





8 POTENTIAL PROJECT IMPLEMENTATION MODELS

In this chapter an attempt has been made to discuss and suggest possible project

implementation options for the proposed cluster based rural electrification project

using grid interactive RE based DDG project for selected cluster of 42 contiguous

habitations in Hulasganj block of Jehanabad district in Bihar. Two project

implementation models have been suggested here. Based on the comparative analysis,

one potentially viable implementation model along with roll out plan has been

recommended for this project.

Proposed RE based biomass gasifier plant is aimed to strengthen the rural

electrification of cluster of 42 contiguous habitations, comprising both, the already

electrified but under-electrified, as well as un-electrified villages/hamlets. Thus the

biomass gasifier power plant would be connected to existing grid, after its proposed

expansion and strengthening, and thus no longer would remain DDG per se as

electricity would be generated by the power plant but will be distributed through local

DISCOM network. Thus the proposed grid interactive RE based DDG plant would

function more like tail end power supply augmentation plant, being used for

enhancing the power supply position. Therefore, as mentioned earlier, PDN would

remain in the domain of DISCOM. Following two options for implementation of the

proposed project are possible.

Project developer to act as an Independent Power Producer

Project developer as an IPP as well as Franchisee

8.1 Independent Power Producer ModelIn this, PD will generate the electricity while DISCOM would continue distributing it

through its PDN. PD and DISCOM will sign the PPA for the lifetime of the proposed

RE based power plant. Accordingly, PD will commission and operate the RE based

power plant to generate and supply the electricity into the local grid by connecting it

to 11kV substation serving the selected cluster. The DISCOM will provide the Feed intariff (FIT) as per signed PPA to the PD and consumers would continue paying tariff to

DISCOM as per the prevailing mechanism of metering and billing with consumers of

existing PDN. Figure 8.1 below presents the operating structure of proposed IPP

model.





Figure 8.1 Operational Structure of IPP Model

The key steps in implementation of the IPP model are as given below:

PD to identify and develop cluster based project scheme which will include;

o Detailed prefeasibility study of the project

o RE technology selection based on resource availability

o Preparation of Detailed Project Report

DISCOM to approve DPR, which would include

o Approval of selected RE technology by DISCOM

o Approval of selected cluster by DISCOM (contiguous un-electrified and

under-electrified habitation)

PD and DISCOM to form a PPA at FIT

PD to achieve the financial closure

PD to develop and commission the project

PD to generate and supply electricity to the grid substation as per PPA and

receive FIT from DISCOM





GoI may provide, though not mandatory, central financial assistance to the

DISCOM through SNA for RE based power plant

DISCOM to continue supply of electricity to connected consumers and collect

revenue as per prevailing tariff order

8.2 Distributed Generation based Distribution Franchisee (DGBDF)In DGBDF model, PD will not only generate the electricity but would also distribute

electricity and carry out the task of metering, billing and collection (MBC) on behalf of

DISCOM, within the selected cluster. Thus, the PD will be performing dual role of the

generator as well as that of franchisee. As a result, there will be two agreements

between PD and DISCOM

(i) PPA for the lifetime of the proposed RE based power plant.

(ii) Franchisee agreement for distribution of electricity and also for

metering, billing and collection of revenue on behalf of DISCOM

According to PPA, PD will commission and operate the RE based power plant to

generate and supply the electricity into the substation and would be connected on

11kV side of the 33/11kV Power Sub-Station along with needed breaker system to

enable isolation mode operation when power is not available in the grid. The DISCOM

will provide FIT as per signed PPA to the PD. The PD will also distribute electricity to

rural consumers and the PD will carry out metering, billing and collection activities

under the Franchisee Agreement. PD shall perform MBC for its own plant as well as

for the grid supply and even in case of grid supply available to rural consumers; the

PD shall supply electricity to grid at the pre decided hours for generation of electricity

from the proposed grid interactive DDG plant. Figure 8.2 below presents the operating

structure for the proposed DGBDF model.





Figure 8.2 Operational Structure of DGBDF Model

The key steps of implementing the DGBDF model are presented below:

PD to identify and develop cluster based project scheme which will include;

o Detailed prefeasibility study for the project

o RE technology selection based on resource availability

o Detailed Project Report

DISCOM to approve DPR, which would include

o Approval of selected RE technology by DISCOM

o Approval of selected cluster by DISCOM (contiguous un-electrified and

under-electrified habitation)

PD and DISCOM to sign two agreements viz. PPA and Franchisee Agreement

PD to achieve the financial closure

PD to develop and commission the project

Project Developer

DISCOM

Flow of Electricity

Tariff (Cash Flow)

FIT (Cash Flow)

Agreement

Consumer

Govt. of India

CFA (optional)

Grid

Consumer Consumer Consumer





PD to generate and supply electricity to the power substation as per PPA and

receive FIT from DISCOM

PD to act as Franchisee of DISCOM and PD distribute electricity and would

carry out functions of metering, billing and collection (MBC)

GoI may provide, though not mandatory, central financial assistance to the

DISCOM for RE based power plant.

8.3 SWOT Analysis of Implementation ModelsIn this section, an attempt has been made to undertake SWOT (Strengths, Weaknesses,

Opportunities and Threats) analysis comparing various advantages and disadvantages

associated with the proposed IPP as well as DGBDF models. Tables 8.1 and Table 8.2

below summarizes the SWOT analysis of IPP and DGBDF model respectively.

Table 8.1 SWO T analysis of IPP model

Strengths Already in operation in power sector in India May attract private sector participation

Weaknesses DISCOM to manage PDN in rural areas Low collection efficiency in rural remote areas

by DISCOM

Opportunity Helps DISCOM to meet responsibility to

provide electricity in rural areas Help DISCOM to meet RPO obligation

Threats Disinterest by DISCOM due to increased FIT

burden with low collection efficiency fromrural areas

Table 8.2 SWOT analysis of DGBDF Model

Strengths

Shall help attract private sector participation Better revenue collection efficiency as

responsibility of revenue collection is withFranchisee

Certainty of cash flow for PD Relatively low financial assistance required as

compared to IPP model

Weaknesses

Involvement of franchisee framework Complexity in revenue management

Opportunity

Helps DISCOM to meet responsibility toprovide electricity in rural areas

Helps DISCOM to improve rural outreachalong with improvement in collectionefficiency

Help DISCOM to meet RPO obligation

Threats

Long term sustainability of both agreements incase of non-improvement in revenue collection

8.4 RecommendationsOn the basis of the SWOT analysis presented above, ABPS Infra recommends DGBDF

Model to be adopted for the proposed grid connected RE based DDG pilot project in

identified Hulasganj cluster of LWE district of Jehanabad in Bihar. The rationale for

the recommendation for DGBDF model is given below:





Attractiveness to private sector participation due to certainty of revenue for

lifetime operation of the plant (DISCOM shall pay FIT, and also CFA, if any

from GoI, and tariff from consumers)

Relatively less financial assistance required

Better collection efficiency for DISCOM, as responsibility of revenue collection

is with project developer

Opportunity to DISCOM for fulfilling its responsibility of rural electrification,

meeting RPO, and promoting renewable as well as strengthening present weak

rural power supply position due to power augmentation at the tail-end.





9 PROJECT IMPLEMENTATION PLAN

This chapter presents the detailed project implementation plan for the proposed 1 MW

grid interactive pilot project in Hulasganj block of Jehanabad district in Bihar using

locally available RE resource. The chapter also discusses the various linkages required

for the project implementation; such as the project site and grid interconnectivity, PDN

and asset management, protocol for power generation, contractual arrangements

between DISCOM and PD, etc.

9.1 Project Site and Grid ConnectivityThe selected cluster consists of both types of villages; electrified and un-electrified. In

case of villages that are electrified, electricity is available for less than 6 hr/day as the

grid does not have sufficient power. The proposed biomass based 1MW power plant is

expected to augment the power supply to cater energy demand of the 42 contiguous

habitations in the selected cluster in Hulasganj block. As a result it is necessary to have

not only connectivity with the grid but also ability to operate the plant in isolation

mode in the event of non-availability of the grid during scheduled power supply

durations. Therefore, it is envisaged that the proposed RE based grid interactive DDG

plant be located close to planned Dhongra substation (being constructed at the site and

likely to be available soon) and would be connected on 11kV side of the 33/11kV

Power Sub-Station along with necessary isolator-breaker system to enable isolation

mode operation when power is not available in the grid. The concerned departmentswithin State Government would be required to provide the requisite land clearance for

the proposed site and permission for grid connectivity with the proposed Power Sub

Station (PSS). Thus the planned DDG project would be connected to PSS at Dhongra

Mushari being constructed under RGGVY, instead of grid sub-station at Hulasganj,

which is providing power to the existing under-electrified villages of the selected

cluster.

9.2 PDN and Asset Management

The pilot project is proposed in a cluster of 42 contiguous habitations out which 24 arealready electrified and are having some PDN which need to be strengthened. Also

there is need to expand it to cater other un-electrified villages within the cluster.

Augmentation and expansion of PDN as per the requirement of project area along

with grid interactive system including power evacuation equipments & controls etc.

shall form part of the project and the entire project cost including such system shall

need to be considered as capital expenditure for considering financial assistance from





Central Government through Capital subsidy. Strengthening and expansion of the

PDN will be carried out by the implementing agency through PD as per the final DPR.

The PD will be allowed to use the existing as well as newly created infrastructure as a

franchisee of the DISCOM for distribution of electricity in the project area. The PD will

bear all the operation and maintenance costs during the contract period. At the end of

the project agreement period, the PD would transfer the PDN infrastructure back to

the DISCOM at prevailing valuation cost and DISCOM and State Government may

agree to this arrangement.

9.3 Protocol for Power Generation and Grid ManagementThe proposed project would be grid interactive, wherein the consumers would have

grid access. The PD would ensure minimal duration of power supply to consumers

(excluding irrigation load) during the pre-determined time slots even in the event of

non-availability of grid power. This will call for islanding operation of DDG plant in

absence of grid power. In order to ensure smooth power management within the

cluster, there would be a need to develop a pre-agreed protocol for the DDG plant

operations and the time slots to be agreed / resolved among BSEB, project developer

and the State Government. This grid management protocol would define the

methodology for operation of the plant in case non-availability of the grid.

The project developer shall operate the grid interactive power plant to generate power

from 0500 hours to 0700 hours in the morning as domestic load. The plant will be

operated from 1000 hours to 1600 hours in the evening so as to cater the commercial

load mainly for school, community centres and hospitals and later the plant shall be

operated for power generation to supply evening lighting load to rural domestic

consumers from 1900 hours to 2300 hours. This would give opportunity to operate

proposed RE based DDG power plant in three time slots of 2 hrs in morning, 6 hrs in

afternoon and 4 hours in the evening with short time gaps available for carrying out

daily routine maintenance. The project developer shall have to generate power during

the agreed hours from the 1 MW biomass gasifier power plant and shall distribute

power to the rural consumers of the Hulasganj block of Jehanabad district.

In case the grid supply is available during the agreed duration for generation of power

from the plant, the project developer shall continue to generate during the agreed time

slots and will supply power to the local grid so as to strengthen power situation.





This protocol thus shall ensure the supply duration of the power plant which will

necessitate the project developer to achieve its financial viability in order to have

smooth running of the plant and even the rural consumers will also be benefited to

have regular and time based supply in which consumers can plan their day to day

routine activities as well as to utilize electricity for variety of commercial activities.

This will help in maximum utilization of the grid interactive power plant.

9.4 Arrangement for Insulation of Agricultural LoadIrrigation is one of the major loads within the cluster but can not be supplied through

the proposed grid-interactive RE based DDG power plant. Significant increase in the

capacity would be required if irrigation load is to be catered necessitating enormous

financial assistance. Also agriculture load cannot be supplied using DDG as per the

prevailing scheme and will have to be catered using the grid power whenever

available within the cluster. In this section, we have developed three different

mechanisms for insulation of agricultural load, which are briefly described below.

9.4.1 Feeder Separation

Agriculture, being one of the major loads of the cluster, there would be a need to

develop an arrangement for the proposed plant which will as work on islanding mode

for operation. In order to reduce losses, one of the simplest ways is to segregate

irrigation load is the feeder separation mechanism. In this mechanism, there would be

separate feeders for the agricultural load. DICOM would bear the cost of developing

separate feeders for the irrigation load, and would be responsible for operation and

maintenance for the concerned PDN for the agricultural area.

9.4.2 Franchisee Arrangement

In this arrangement, the franchisee means the project developer would develop the

complete PDN network for the identified Hulasganj cluster in Jehanabad district

including domestic, commercial and even agricultural. The project developer will

monitor the agricultural load of the cluster, and would be responsible for operation

and maintenance of the PDN for agricultural load which is to be based on incentive

mechanism. This means the project developer would be incentivised for monitoring

the PDN of the agricultural area.

9.4.3 Demand Response

Demand response comprises short-term actions taken by end-use customers to change

(usually reduce) their electricity use in response to high prices in the electricity market;





and/or problems on the electricity network. In network-related demand response, the

network operator notifies customers and demand response providers when short-term

load reductions are required. In this mechanism, the consumers having agricultural

load would install meters along with load control mechanisms on the pump sets. The

load control mechanism would allow franchisee to disconnect the load in case of non-

availability of grid supply there by restricting demand that can be served by the

proposed 1MW DDG.

9.5 Franchisee Arrangement for MBCIn order to help enhance the financial viability of the project due to low revenue to

meet operating expenses, PD (as distribution franchisee) would be allowed to device

appropriate mechanism (such as prepaid meters, load controllers etc.) for billing and

revenue collection as well as for preventing possible power theft within the cluster.The PD should also be allowed to develop and implement any DSM initiative within

cluster in an effort to manage the load and enhance financial viability.

Therefore, it is proposed that the PD will act both as generator as well as franchisee

and would be allowed to device appropriate mechanism (such as prepaid meters, load

controllers etc.) for billing and revenue collection as well as for preventing power theft

within the cluster.

9.6 Criteria for PD selectionPD would be one entity, both for carrying out the generation and distribution tasks.

There could be many players available for the same. But considering the fact that, for

remote operation there might be unwillingness or non-availability of one entity doing

both the tasks. Therefore, consortia can be allowed to participate with minimal lock-in

period of partnership for 5 year or more. Pre-condition would be if any one of the

agreements viz PPA and FA gets terminated, then both the agreements would get

terminated. Considering the fact that PD is investing 30% equity and it would be in

business interest of PD to continue both, there is less likelihood of PD would like to

terminate one of the two agreements.

9.7 Contractual ArrangementsThe DISCOM shall sign the PPA and Franchisee Agreement with the project

developer. The DISCOM, before signing of agreements, shall undertake necessary

verification of the project developer, the status of un-electrified as well as under-

electrified villages, etc. In case the project developer shall not be able to provide the





services as mentioned in any one of the agreements, both of the agreements shall be

cancelled. There will also be a possibility of development of one single contract in the

name of Franchisee cum Power Purchase Agreement consisting of features of the both

the Franchisee and PPA.

9.7.1 Franchisee Agreement

There shall be a franchisee agreement between the project developer and the DISCOM.

The agreement shall follow Model Draft Franchisee Agreement approved by the

Government of India as a part of Rajiv Gandhi Grameen Vidyutikaran Yojana and

would contain the following:

Date Agreement

Contracting Parties

Definitions and Interpretations

Definition of Area

Period of the Contract

Billing and Payment Cycle

Agreed Power Price

MRV Process

Force Majeure Conditions

Roles and Responsibilities of Project Developer / Franchisee

Right of Use - The franchisee shall be entitled to use the DISCOM’s existing

distribution assets to perform its obligation under this Agreement.

Load Forecast – Franchisee shall carry out demand estimation / load forecast

of the Franchise Area periodically and apprise the same to the DISCOM

Operation and Maintenance – Franchisee shall at its own cost perform

following within the cluster:

o O&M of Distribution Assets from the start of input feeders

o O&M of sub-stations and transformer stations

o Installation and replacement of metering devices and carry out meter

reading of all feeders and distribution transformers

o Repair, maintain and replace failed distribution transformers as per the

applicable Supply Code and Standards of Performance notified by

BERC

o Maintain a minimum level of rolling stock of transformers and other

necessary material





o Upgrade, renovate and maintain the existing distribution network/

systems/ IT assets and systems as per Prudent DISCOM Practices and

the standards that may be prescribed by BERC.

Compliance Standards - Franchisee shall take all reasonable steps to ensure

that all consumers within the franchise area receive a safe and reliable supply

of electricity as defined by BERC.

Consumer Complaint Handling – Franchisee shall develop complain handling

procedure to be approved by DISCOM.

Consumer Services – Franchisee, on request of the consumer, to the extent that

is reasonably available to the franchisee, shall provide, information on all

services such as meter readings, information on status of customer’s account,

etc.

Obligation to connect consumers - Franchisee shall, on the application of the

owner or occupier of any premises within the Franchise Area

Commercial and Responsibilities – Franchisee shall perform the following,

o Meter reading and billing to the consumers as per the retail tariffs

approved by BERC from time to time;

o Collection from consumers as per billing;

o Collection of arrears / adjustment of arrears on account of Consumers

who are permanently disconnected by the Franchisee;

o Make timely payments of collected revenue to DISCOM as per the

terms and conditions of this Agreement;

o Replace defective meters with new meters;

o Maintain consumer data base and billing records;

o Initiate necessary action, in accordance with the procedure of anti-theft.

Roles and Responsibilities of DISCOM

Supply of Energy – DISCOM shall supply energy at input points of the grid

sub-station. However, this supply may vary subject to SLDC Directives on load

shedding. Without prejudice to the foregoing, DISCOM shall not discriminate

in the supply of power between the Franchise Area and its other Distributionareas

DISCOM shall ensure the supply of power to Franchisee of acceptable quality

standards

DISCOM shall communicate to Franchisee any shortfall or inability to supply,

the power requirements of the Franchisee





DISCOM shall carry out meter reading jointly with Franchisee on a monthly

basis at Input Points / interconnection point of the Franchise Area

DISCOM shall support the Franchisee initiatives to adopt innovative practices

to bring about effectiveness and efficiency in electricity distribution business

DISCOM shall incur capital expenditure in case further augmentation of PDN

is required during the period of franchisee agreement.

9.7.2 Power Purchase Agreement

There shall be a PPA between the project developer and the DISCOM. The PPA shall

contain the following information:

Date of Agreement

Contracting Parties

Definitions and Interpretations

Capacity of the project in kW and also in kWh.

Complete details of the distribution network, declare the voltage levels, etc.

Measurement, Reporting and Verification (MRV) process

Grid Synchronization

Tariff

Period of Contract

Billing and Payment Cycle

Delayed Payment Charge

Force Majeure Conditions

Roles and Responsibilities of Project Developer

Project developer shall comply with the Grid Code, Load Despatch & System

Operation Code, Metering Code, Performance Standards, Protection Code and

Safety Code etc. as applicable from time to time in the State

Project developer shall also provide suitable protection and control devices /

islanding devices as a future provision for synchronization of plant with grid

The project developer shall be responsible for security & protection of metering

arrangement based on the location of metering as stipulated in the metering

code.

The project developer shall develop the meter reading, sealing and billing

procedure

Project developer shall submit the billing details to DISCOM and shall raise

invoice based on the sale of utility power as well as the sale of proposed 1 MW

biomass gasifier power to the consumers.





Roles and Responsibilities of DISCOM

The DISCOM and Project Developer shall jointly read the metering system

The DISCOM shall purchase RE based power generated by DDG from PD to

for agreed operation duration as per protocol of plant operation. Even if grid

power is available DISCOM would import power from RE based DDG plant at

least for agreed generation as per protocol signed among PD-DISCOM-SERC.

The DISCOM shall purchase power from PD on the Feed-in-tariff as specified

by BERC from time.

DISCOM shall pay the FIT to project developer based on the invoice received

from project developer

9.8 Financial assistance needed to ensure financial viabilityPreliminary financial analysis presented in previous section indicates that, with the

prevailing DISCOM tariff, the proposed RE based DDG project is not financially viable

even with 90% capital subsidy. Therefore there is a need of additional financial

assistance to ensure viability of the plant operation over its lifetime. This viability gap

would further increase if the cost of PDN augmentation is included into the capital

cost of the DDG project.

Thus the financial assistance for DDG project would consist of capital subsidy (under

DDG scheme of the Central Government) as well as additional viability gap supportthrough DISCOM/State Government. This requirement of additional viability gap

funding would be required to cover the difference between cost of generation and

distribution (at given capital subsidy) and DISCOM Tariff. Since the BSEB will be

purchasing entire electricity generated by the Project, the said may be accounted to

fulfil its RPO and therefore the viability gap in the form of difference between Cost of

Generation and Consumer Tariff may be absorbed by the BSEB.

It is proposed that the financial assistance to project developer would comprise of both

capital subsidy while commissioning of the DDG power plant and additional viabilitygap on annual basis to meet difference between cost of power distribution and

prevailing Discom tariff while generating and supplying power over lifetime of the

project. The capital subsidy would be limited to 70% of the total project cost so as to

have minimal 30% as equity contribution by PD in line with prevailing practise in

power sector. Reduced subsidy level and increased equity share might increase the

additional viability gap required for providing power but would help attract private





sector participation due to enhanced business interest and ownership would help

ensure effective plant operation throughout its life time. Project cost for the proposed

pilot project would comprise of RE based DDG power plant cost (excluding land cost;

as land would be provided by the State Government) along with grid interactive

control equipments and PDN augmentation. Though in the long run PDN cost can be

treated separately (resulting in reduced viability gap requirement for providing

power) and can be covered under distribution infrastructure enhancement programme

and can be financed separately. The viability gap for providing power and prevailing

DISCOM tariff would be paid annually over the lifetime of power plant and would be

borne by the BSEB. Necessary support may be provided by the State Government.

As per the preliminary calculations with 30% equity (70% capital subsidy) and

assumptions (prevailing biomass price of Rs 1000/ton, domestic to commercial load

profile of 60:40, etc) the levelized annual viability gap for generating and supplying

power works out to approx Rs 197 Lakh annually over lifetime of 20 years. However,

at the time of project approval this viability gap would need to be calculated based on

the agreed operating parameters for given RE technology and prevailing values of

different parameters and DSCOM tariff and also quantum of capital subsidy to be

provided by Central govt.

9.9 Bid Process Management

It is proposed that the necessary financial support as well as assistance to

Implementing Agency which is DISCOM for bid process management of this first pilot

project be provided by UNDP-MoP under its ongoing `Access to Energy’ programme.

UNDP will help accelerate the project bidding process through its own channel and

can help in identification of consultant and provide needed assistance so as to keep

project on track before closure of ongoing programme by December 2012.





10 ROLL OUT PLAN FOR PROPOSED RE BASED DDGPROJECT

This chapter presents the possible ‘Roll Out Plan’ for implementation of the proposed

cluster based rural electrification project in selected cluster of 42 contiguous

habitations in Hulasganj block of Jehanabad district in Bihar. The step-by-step roll out

plan for implementation of the IPP model is given below:

Approval of DPR from UNDP-MoP as well as Project Coordination Committee

of the key stakeholders

Site Clearance for the proposed DDG Plant site near upcoming substation at

Dhongra Mushari, Village Tesaur of Chiri Panchayat

Allocation of fund by MoP and/or UNDP and State Government for the

implementation of the proposed project

Concurrence of BSEB/DISCOM for participation in the project and handing

over distribution assets to PD

Filing of the petition before BERC for determination of FIT by BSEB

Approval of FIT by BERC

Preparation of bid document by BSEB (implementing agency)

Conduct tariff based reverse bidding by BSEB

Selection of the project developer and award the contract by BSEB

Signing of PPA and Franchisee Agreement between DISCOM and PD

Financial closure by PD

Construction and commissioning of RE based Power Plant by PD

Construction/ refurbishment of the PDN network by PD

Generation and distribution of electricity by PD and connecting to power sub-

station and payment of FIT as per PPA by DISCOM to PD throughout the RE

power plant life duration.

MBC to be carried out by PD.





ANNEXURE A INFORMATION DATA BASE OF VILLAGES-HAMLETS IN SELECTED CLUSTER

Bauri Panchayat

Bauri PanchayatCensus Village Bauri Dadpur Harpur Bihta Dihuri Kew

Habitation (Villag/Hamlet) Total/ Average Bauri Gidarpur KisunpurRupa

BighaDadpur

Adhikari

BighaHarpur Bihta Dihuri Kew

Village Census Code (Census 2001) 3773600 NA NA NA 3773500 NA 3773200 3773300 3773400 37724

Village Area (ha) (Census 2001) 881 289 88 25 176 171 132

No of Households (Census 2001) 1104 449 90 49 184 267 65

Village Population (Census 2001) 7497 3088 636 317 1131 1849 476


No BPL HH (Survey) 887 375 65 20 40 100 10 15 50 152 60

No of Non-BPL HHs (Survey) 793 350 55 20 60 70 20 25 55 98 40

No of Total HHs (Survey) 1680 725 120 40 100 170 30 40 105 250 100

Average HH Annual Income (Rs) 3206 3250 3250 2850 4250 1750 3206 3750 3500 3250 300

Avg kerosene consumption (lit/month)

(2.5 lit is subsidized through PDS)4.55 5.5 5 4.5 4.5 4.5 3.5 4.5 4.5 5.0 4.0

Avg expense for s upplementing electricity

(Rs/HH/month) 114 140 125 130 115 115 80 90 125 100 120

Avg Expenses on Diesel Usage

(Rs/HH/month)127 125 125 130 125 125 125 135 125 120 130

Willingness to pay (Rs/month) 79 75 85 75 79 80 50 75 90 85 100

Community Buildings in Village/Hamlet

Panchayat Bhawan / Community Centre 1 1 0 0 0 0 0 0 0 0 0

School 7 1 1 0 1 1 0 0 2 1 0

Public Health Center 1 0 0 0 1 0 0 0 0 0 0

Cooperative-Bank 0 0 0 0 0 0 0 0 0 0 0





Bauri PanchayatCensus Village Bauri Dadpur Harpur Bihta Dihuri Kew

Habitation (Villag/Hamlet) Total/ Average Bauri Gidarpur KisunpurRupa

BighaDadpur

Adhikari

BighaHarpur Bihta Dihuri Kew

Commercial Activities in Village/Hamlet

Atta chakki 13 3 1 0 3 2 1 0 1 1 1Cane crusher/oil mill 2 0 2 0 0 0 0 0 0 0 0

Rice mill/huller 5 0 0 1 2 2 0 0 0 0 0

No of Irrigation Pumpsets 349 50 80 15 70 50 0 9 10 25 40

Sources of Energy

Grid availability in Villages/Hamlets 6 1 0 0 0 1 0 1 1 1 1

Daily power supply (hr) Annual Avg 5.4 5.5 NA NA NA 5.5 NA 5.5 5.0 6.0 5.0

Monthly availability (day) Avg 17.50 15 NA NA NA 25 NA 12 20 18 15

Crop Residue Production

Rice 2415 800 350 125 150 250 50 10 300 300 80

Wheat 2045 700 300 125 150 200 0 10 250 250 60

Oil Seed 265 100 0 5 10 10 0 0 50 50 40

Sugarcane 120 0 20 5 20 15 0 0 20 20 20

Other Crop (Arhar) 60 0 0 0 0 20 0 0 20 20 0





Khudaur Panchayat

Khudaur PanchayatVillage Total/

Average

Khudauri Raghunathpur Narma Mokimpur Walipur Golakpur

Habitation Khudauri Rampur Raghunathpur Narma Emitpur Benipur Mokimpur Walipur GolakpurVillage Census Code (Census 2001) 3773700 NA 3773800 3773900 NA NA 3774000 3775200 3775500

Village Area (ha) (Census 2001) 1099 223 85 372 54 230 135

No of Households (Census 2001) 1275 330 133 334 35 232 211



No BPL HH (Survey) 610 100 20 20 180 80 20 120 40 30

No of Non-BPL HHs (Survey) 550 100 35 55 155 45 10 80 60 10

No of Total HHs (Survey) 1160 200 55 75 335 125 30 200 100 40

Average HH Annual Income (Rs) 3828 2750 3500 4000 4500 4500 3000 4250 4250 3700


(2.5 lit is subsidized through PDS)4.8 4.5 4.0 4.5 5.5 5.5 5.0 5.0 4.5 4.5

Avg expense for s upplementing electricity

(Rs/HH/month)129 135 125 125 145 135 135 100 130 130


(Rs/HH/month)121 120 150 110 145 135 135 90 100 100

Willingness to pay (Rs/month) 88 80 70 90 100 100 90 100 80 85


Panchayat Bhawan / Community Centre 2 1 1 0 0 0 0 0 0 0

School 6 1 1 1 1 1 0 1 0 0

Public Health Center 6 1 1 0 2 0 0 1 1 0

Cooperative-Bank 1 0 0 0 1 0 0 0 0 0


Atta chakki 17 1 5 2 2 1 0 2 0 4

Cane crusher/oil mil 2 1 0 0 0 0 0 1 0 0

Rice mill/huller 20 1 5 2 2 2 2 2 3 1

No of Irrigation Pumpsets 417 100 30 10 100 40 12 100 20 5





Khudaur PanchayatVillage Total/

Average

Khudauri Raghunathpur Narma Mokimpur Walipur Golakpur

Habitation Khudauri Rampur Raghunathpur Narma Emitpur Benipur Mokimpur Walipur Golakpur

Sources of Energy

Grid availability in Villages/Hamlets 5 1 0 1 1 1 0 1 0 0

Daily power supply (hr) Annual Avg 5.50 6 NA 5 6 5 NA 5.5 NA NAMonthly availability (day) Avg 19.60 15 NA 18 15 25 NA 25 NA NA


Rice 4465 1700 0 1000 1000 140 15 160 250 200

Wheat 4215 1500 0 1000 1000 140 15 160 250 150

Oil Seed 190 100 0 0 30 0 0 0 10 50

Sugarcane 192 50 0 0 50 10 2 10 20 50

Other Crop (Arhar) 300 0 0 300 0 0 0 0 0 0





Kokarsa Panchayat

Kokarsa PanchayatVillage Total/

Average

Kokarsa Mirzapur Sukiyawan Lodipur Rustampur Rustampur

Habitation Kokarsa Mirzapur Sukiyawan Lodipur Rustampur BeldaripurVillage Census Code (Census 2001) 3775100 3774100 3774200 3775700 3775000 NA

Village Area (ha) Census 2001 1157 457 66 204 58 372

No of Households (Census 2001) 1522 555 107 220 105 535

Village Population (Census 2001) 10391 4105 753 1493 719 3321

Village Population (Census 2011) 12061 5118 789 1628 911 3615

No BPL HH (Survey) 660 200 70 35 80 250 25

No of Non-BPL HHs (Survey) 1205 900 40 25 40 100 100

No of Total HHs (Survey) 1865 1100 110 60 120 350 125

Average HH Annual Income (Rs) 3820 4000 3820 4000 3700 3700 3700


(2.5 lit is subsidized through PDS)5.25 6 5 4.5 5 6.5 4.5

Avg expense for supplementing electricity

(Rs/HH/month)130.8 140 125 120 130 135 135

Avg Expenses on Diesel Usage (Rs/HH/month) 113 100 120 130 100 115 135

Willingness to pay (Rs/month) 83.3 70 90 100 90 75 75


Panchayat Bhawan / Community Centre 2 1 0 0 1 0 0

School 5 1 1 1 1 1 0

Public Health Center 3 1 0 1 1 0 0

Cooperative-Bank 1 0 0 1 0 0 0


Atta chakki 23 10 5 5 0 3 0

Cane crusher/oil mil 9 1 4 0 0 4 0

Rice mill/huller 0 0 0 0 0 0 0

No of Irrigation Pumpsets820 500 30 20 20 250 0





Chiri Panchayat

Chiri PanchayatVillage Chiri Dumri Sarma Sisara Ginnji

Habitation Chiri Dumri Sarma Manjhi Tola Ratan Bigha Sisara Ginji ChaitiPipar DhongraVillage Census Code (Census 2001) 3771900 3772000 3772100 NA NA 3772200 3772300 NA NA

Village Area (ha) Census 2001 218 132 193 133 185

No of Households (Census 2001) 371 150 162 69 170

Village Population (Census 2001) 2401 985 1141 604 1256

Village Population (Census 2011) 2982 1021 1103 798 1527

No BPL HH (Survey) 125 90 50 40 10 51 37 80 5

No of Non-BPL HHs (Survey) 225 80 100 0 0 24 98 15 100

No of Total HHs (Survey) 350 170 150 40 10 75 135 95 105

Average HH Monthly Income (Rs) 4000 1500 4000 1200 2500 3000 4500 2500 3750


(2.5 lit is subsidized through PDS)6 6 6 2.5 4.5 5.5 5.5 4.5 4.5


(Rs/HH/month)150 150 150 65 125 125 135 125 115


(Rs/HH/month)120 150 150 50 130 110 120 125 100

Willingness to pay (Rs/month) 120 100 125 90 80 60 100 100 80


Panchayat Bhawan / Community Centre 1 0 0 0 0 0 0 1 0

School 1 1 1 0 0 1 0 0 1

Public Health Center 1 1 0 0 0 1 1 0 0

Cooperative-Bank 0 0 0 0 0 0 0 0 0


Atta chakki 8 5 2 0 0 1 2 0 1

Cane crusher/oil mil 0 0 0 0 0 0 0 0 0

Rice mill/huller 0 10 5 0 0 20 0 1 2

No of Irrigation Pumpsets 100 70 5 0 0 30 20 0 90





Chiri PanchayatVillage Chiri Dumri Sarma Sisara Ginnji

Habitation Chiri Dumri Sarma Manjhi Tola Ratan Bigha Sisara Ginji ChaitiPipar Dhongra

Sources of Energy

Grid availability in Villages/Hamlets 1 1 1 0 0 1 1 0 1

Daily power supply (hr) Annual Avg 4 5 5 NA NA 5 5 NA 4.5Monthly availability (day) Avg 10 12 15 NA NA 18 10 NA 13


Rice 1000 400 150 0 0 300 400 25 300

Wheat 800 300 100 0 0 300 320 25 300

Oil Seed 150 25 20 0 0 0 5 5 1

Sugarcane 50 40 5 0 0 15 40 3 5

Other Crop (Arhar) 0 0 0 0 0 5 0 0





Chiri Panchayt (Contd….)

Chiri Panchayat (contd....)Village

Total/

Average

Teasaur Sarthua

Habitation Teasaur DhongraMushari

Sarthua Sevapuri BhaguBigha

Bulaki Bigha DesaiBigha

Kolbhapur

Village Census Code (2001) 3774400 NA 3774500 NA NA NA NA NA

Village Area (ha) 1532 346 325

No of Households (2001) 1383 183 278

Village Population (2001) 9744 1421 1936

Village Population (2011) 11551 1670 2450

No BPL HH (Survey) 879 75 140 75 15 25 1 25 35

No of Non-BPL HHs (Survey) 818 15 0 25 11 45 10 35 35

No of Total HHs (Survey) 1697 90 140 100 26 70 11 60 70

Average HH Annual Income (Rs) 3182 4250 1750 3600 4250 3800 3000 2000 4500


(2.5 lit is subsidized through PDS)4.76 5.5 4 4.5 4.5 4 4 5 4.5


(Rs/HH/month)120 130 90 140 100 85 100 120 130


(Rs/HH/month)117 90 120 130 85 100 165 130 110

Willingness to pay (Rs/month) 88 75 100 75 75 80 80 75 80


Panchayat Bhawan / Community Centre 3 0 0 0 0 0 0 0 1

School 8 1 1 1 0 0 0 0 0

Public Health Center 5 0 1 0 0 0 0 0 0

Cooperative-Bank 0 0 0 0 0 0 0 0 0


Atta chakki 29 3 0 0 3 0 2 0 2

Cane crusher/oil mil 2 0 0 0 0 0 2 0 0

Rice mill/huller 43 1 0 0 0 2 0 1 1

No of Irrigation Pumpsets 507 15 0 100 20 10 4 3 40





Chiri Panchayat (contd....)Village

Total/

Average

Teasaur Sarthua

Habitation TeasaurDhongra

MushariSarthua Sevapuri

Bhagu

BighaBulaki Bigha

Desai

BighaKolbhapur

Sources of Energy

Grid availability in Villages/Hamlets 0/1 1 1 1 0 0 0 0 0

Daily power supply (hr) Annual Avg 5.0 6 5 5.5 NA NA NA NA NA

Monthly availability (day) Avg 15.4 30 16 15 NA NA NA NA NA


Rice 5300 900 100 1200 100 0 0 25 400

Wheat 4140 800 70 650 100 0 0 25 350

Oil Seed 326 0 20 100 0 0 0 0 0

Sugarcane 240 50 10 0 10 0 0 2 10

Other Crop (Arhar) 15 0 0 0 10 0 0 0 0





ANNEXURE B: ECONOMIC ASSESSMENT OF AGRO-RESIDUE AS ENERGY RESOURCE

PreambleBiomass can be classified as woody and non-woody biomass. Non-woody biomasscomprises of agro-crop and agro-industrial processing residue such as rice husk,groundnut shells, coffee husk, straws and stalks, coconut shells, coconut husk, jutesticks etc.

Crop residues are plant materials remaining in the farm after removal of the main cropproduce. The remaining materials could be of different sizes, shapes, forms anddensities i.e. straw, stalks, sticks, leaves, haulms, fibrous materials, roots, branches,twigs etc. The agro-industrial residues, are by-products of post harvest processes ofcrops viz. cleaning, threshing, delinting, sieving, crushing, etc. and could be in theform of husk, dust, straws etc. The major crop residues produced in India are straws of

paddy, wheat, millet, sorghum, pulses, and oil-seed crops, maize stalks and maizecobs, cotton stalks, jute sticks, sugar cane trash, mustard stalks etc. The agro-industrialresidues are groundnut shells, rice husk, bagasse, cotton waste, coconut shell and coirpith.

The quantity of agricultural residues produced, differs from crop to crop and is alsoaffected by seasons, soil type, irrigation conditions etc. Production of agriculturalresidues is directly related to the corresponding crop production and ratio betweenmain crop produce and residues, which varies from crop to crop and at times with thevariety of the seeds in one crop itself. Thus for known amounts of crop production, itmay be possible to estimate the amounts of agricultural residues produced using theresidue to crop ratio.

Most of the agricultural residues are not available throughout the year and becomeavailable at the time of harvest. This makes collection easy, but creates storageproblems if residues have to be saved for use during other months of the yearespecially due to its low bulk density. The amount available depends upon harvestingtime, their storage-related characteristics, the storage facility etc.

In India normally two crops are taken, namely Kharif and Rabi, therefore, availabilityof crop residues is expected to be spread evenly over the year. As a result, cropresidues of one kind or the other are available throughout the year. Since the cropproduction depends upon the agro-climatic conditions, all agro-residues are notavailable in all parts of the country.

Analysis to estimate monetary value of biofuelsBiomass, both woody as well as agricultural residues, have acquired considerableimportance as biofuels for variety of energy enduses such as domestic cooking,industrial process heating, electrical power generation etc. In order to formulate andimplement long-term strategies for efficient and economic utilization of biomass asenergy source, it is important to estimate their monetary value for the end user.





The supply cost of rice has been calculated using above approach and by usingprevailing price values and findings are tabulated below.

Supply cost components of rice husk (Rs/tonne)Distance Production Collection Transportation cost Total supply Cost

Animal cart Tractor trolley Animal cart Tractor trolley

0-15km

304 48

108 134 706 732

15-30km 216 268 814 866

30-45km 324 402 922 1000Note : Separate harvesting not considered for rice husk as included in production cost (no separate harvesting of residues) and storage cost is

not considered as normally rice husk is stored in open space

It can be observed that the minimum cost to ensure the supply of rice as biomass fuelas an economically viable proposition varies from Rs 706 to 922 and Rs 732 to 1000 pertonne for animal and tractor trolley respectively for a distance range from 0-15 km to0-45km.

Cost of Agro-Residues: Demand Side ApproachIn the supply side approach the contribution of the costs of production, harvesting,collection, transportation and storage is taken into account to arrive at a reasonableestimate of minimum monetary value of agro-residue. This method does not take intoaccount the quality of the agro-residue such as its energy content (calorific value) andthe effect on efficiency for its utilization, during energy conversion to meet energyrequirement. In order to overcome this drawback there is need calculate the maximumaffordable cost (monetary value of opportunity cost) of agro-residue as biomass fuelfor given energy application. This maximum affordable cost (MACar) of the agro-residue is essentially the monetary value of equivalent amount of fossil fuel that can be

replaced by use of agro-residue as bio-fuel, which can be used as A measure of equivalent monetary worth of agro-residues

A basis for comparison of the prices of two or more agricultural residue for agiven application

An upper limit to the price of agro-residue beyond which the use of fossil fuelmay be better economical/financial option.

Normally, the calorific value of agro-residues and the efficiency of their utilization forparticular energy application differ from that of alternate fossil fuel that is presentlybeing used. The maximum affordable cost of agricultural residue (MACar) can bedetermined by taking into consideration of these differences in calorific values andefficiencies of their utilization by using following equation

ff

ff ff

ar ar

ar C CV

CV MAC

Where, CVar and CVff represents the calorific value of agro-residue and fossil fuel

(being substituted by agro-residue) respectively, while ar and ff represents thethermal efficiency of utilization for the same enduse for agro-residue and fossil fuelrespectively, and Cff is the unit price of fossil fuel at the enduse location. The





expression in the square bracket of equation represents the equivalent specific mass offossil fuel that is being replaced by agro-residue. The characteristics of rice husk are

Characteristic of selected biomass agro-residuesCalorific value(kcal/kg)

C(%)

H(%)

N(%)

O(%)

Ash(%)

3180 37.03 5.25 0.09 40.94 16.69

The maximum affordable cost (MACar) calculated for rice husk for various competingfuel usage for thermal heat requirements can be tabulated as below.

Maximum affordable cost (MACar) of agro-residues

Fuel Rice husk Coal FO/LDO

Calorific Value (kcal/kg) 3180 3300 9600

Efficiency (%) 15 40 70

Price (Rs/tonne) 3000 37000

MAC of rice husk (Rs/tonne) 1084 2626

The estimated maximum affordable cost (MACar) for rice husk works out to Rs 1084and Rs 2626 per tonne, in competing process industries; presently using coal andFO/LDO for meeting heat energy requirement. Thus the price of rice husk within thecluster would range from minimum of Rs 700 per tonne (supply cost within 0-15km)to Rs 2626 per tonne if competing usage gets developed consuming significantquantity of available rice husk from cluster for replacing present use of FO/LDO. Incase of scarcity within cluster rice husk can be procured at around Rs 1000 per tonnefrom distance of about 45km having surplus availability.

dpr of hulasganj cluster_5dec2012

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