making renewables a reality for your business
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Making Renewables A Reality for Your Business
Narasimhan SanthanamEnergy Alternatives India – EAI
www.eai.in
Presentation to Aditya Birla GroupJun 17, 2011
It is critical to understand the difference between
what is Possible, and
what is Feasible
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Energy SourcesRenewable Non-renewableSolar (PV, CSP, thermal) TraditionalWind (onshore, offshore) OilHydro (large, small, hydrokinetic) Gas
Ocean (wave, tidal, OTEC, salinity gradient)
Coal
Bio-based (biofuels, biomass power) AlternativeGeothermal (heat pumps, power, enhanced geothermal)
Nuclear
Waste to energy* (MSW, agrowaste, sewage waste, industrial waste)
Tar Sands (oil)
Hydrogen* (fuels cells) Oil shale (oil)Shale gas (gas)Gas hydrates (gas)
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Real Imperatives for Renewables
• Fossil fuels becoming more scarce and costly
• Governmental mandates on GHG emissions
• Industry-wide consensus for sustainable practices
• Consumer preference for green companies
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Real Imperatives for Renewables
• Fossil fuels becoming more scarce and costly
• Governmental mandates on GHG emissions
• Industry-wide consensus for sustainable practices
• Consumer preference for green companies
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Making Sense of Renewables• Geo Sense - Not all renewable sources make sense
to all of us (ocean energy makes no sense to landlocked countries)
• Time Sense - Some renewable energy sources are in their nascent stage (it could take 10 years to get fuel from algae)
• Money Sense - Renewables need to make both ecological and financial sense (small wind is ecologically sound, but financially not)
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Making Renewables A Reality for Your Business
What …are the real benefits for us from renewables?
Which …renewable sources are really appropriate for us?
How much …do renewable energy sources really cost?
How …can we really start off?
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Real Benefits from Renewables
• Distributed energy
• Fuel security
• Hedge against inflation
• Setting yourself for a more sustainable futurewww.eai.in
Real “Costs” of Renewables
• Intermittency & unreliability (solar PV and wind)
• Not all are future proof in terms of feedstock (eg., biomass)
• Technology risks (solar CSP)
• High costs – solar, wave/tidal, 2nd/3rd gen biofuels
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Renewable energy possibilities
• Renewable power
• Renewable heat (and cold)
• Enhanced energy recovery
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Renewable power• Solar PV
• Thin films• Crystalline
• Wind• Small wind• MW scale wind
• Biomass• Gasification• Combustion
• Organic Waste• Anaerobic digestion
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Renewable heat and cold
Renewable heat (and cold) can be obtained from:
• Biomass gasification
• Solar thermal
• Anaerobic digestion
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Enhanced energy recovery
Enhanced energy recovery is possible through
• Cogeneration (…trigeneration and perhaps, even quadgeneration)
• Waste heat recovery
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Technical feasibility of renewable sources for captive
Depends on
• Scale of operations
• Availability of natural resources
• Land availability
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Scale of OperationsResource Small scale (Y/N) Large scale (Y/N)
Solar PV Y Y
Solar CSP N Y
Solar for Thermal Y Y
Wind N Y
Biomass Gasification Y N
Biomass Combustion N Y
Anaerobic digestion for power
Y Y?
Anaerobic digestion for heat
Y Y
Cogeneration N Y
Waste heat recovery Y Y
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Availability of natural resourcesResource Natural resource requiredSolar PV SunlightSolar CSP SunlightSolar for Thermal SunlightWind WindBiomass Gasification BiomassBiomass Combustion BiomassAnaerobic digestion for power
Wet organic waste
Anaerobic digestion for heat Wet organic waste
Cogeneration BiomassWaste heat recovery Heat that is wasted
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Land availability
Resource Area (acres) required per MW
Solar PV 4Solar CSP 7Wind 2/25(1)
Biomass Gasification 0.5(2)
Biomass Combustion 0.5(2)
Anaerobic digestion for power
0.5
1: only two acres are required for the actual turbine operations, per MW2: only for the power plant, does not include the area required for growing the biomass
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Suitability as a captive sourceResource Suitability for captive energy
Solar PV Very good
Solar CSP Only if requirements are > 50 MW
Solar for Thermal Vey good
Wind Poor
Biomass Gasification Very good for small scales < 2 MW
Biomass Combustion Very good for medium scales > 5 MW
Anaerobic digestion for power Very good for industries with significant wet organic waste
Anaerobic digestion for heat Very good for industries with significant wet organic waste
Cogeneration Very good
Waste heat recovery Very good
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Attractive options for captive energy
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Attractive options for captive energy
Any scale
Solar PV Can be as low as 50 W
Solar for thermal Can be used for very small scale heating/drying
Waste heat recovery Can work on any scale, but much better on medium scales
Small scale
Biomass gasification for heat and power Upto 2 MW
Medium and large scale
Cogeneration Typically tied to rankine cycle based power production, usually over 10 MW
Biomass combustion for power > 5 MW
Real Costs
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Source Capex (Rs lakh/kW)
Opex (Rs/kWh)
Efficiency/CUF
Levelized cost (Rs/kWh)
Solar PV 1.5-2 0.6 17% (eff) 10-11
Solar CSP 1.2-1.3 0.8 22% (eff) 9-10
Wind 0.6 0.4 25% (CUF) 2.25-3
Biomass gasification
0.55 0.9 (excl biomass cost)
80% (CUF) 2.5-4
Biomass combustion
0.5 0.9 80% (CUF) 3-4
Anaerobic digestion
1-1.1 0.7 (excl cost of waste, usually zero)
80-85% 2.75-3.75
Costs – Highlights and summary
• Wind, biomass power and anaerobic digestion based power are close to grid parity
• Biomass power could cost much higher if no control on prices of biomass
• Both solar PV and CSP cost more almost three times as much as grid power
• Cost reductions with time are highest for solar PV and CSP, thus they could be cost-leaders in future.
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Financial support mechanisms
• Capital subsidies
• Tax holidays
• Accelerated depreciation
• Soft loanswww.eai.in
Other monetization possibilities
• Co-products and by-products– Biomass gasification
• Charcoal• Activated carbon
– Anaerobic digestion• Nutrient laden effluent Fertilizer
• Waste heat– process heating + drying cooling (trigeneration) fuels
(quadgeneration)• Carbon credits• Renewable energy certificates• Avoiding cost of organic waste disposal
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Way to go…
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Understand the scope of possibilities
Shortlist the most appropriate for your business
Test with a pilot
Go live!
Reality check while starting off renewable projects
• Visit companies that have already implemented similar solutions
• Results from projects vary across companies and locations
• Most renewable energy projects have payback periods in excess of 3 years (solar > 7 years)
• Most renewable energy projects will require good amount of maintenance and repair operations
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About EAI
• Dedicated focus on renewable energy and cleantech for India
• Diversification, feasibility studies, market entry strategy, business intelligence
• Work with corporates on making their factories use more renewables
• Founded by professionals from IITs and IIMs• Based out of Chennai• More from www.eai.in – see also our club, forum,
mailing list…www.eai.in
All the best!
Narasimhan SanthanamEnergy Alternatives India – EAI
Mob: [email protected], www.eai.in
www.eai.in