TECHNO-ECONOMIC EVALUATION OF RENEWABLE ENERGY OPTIONS FOR
DECENTRALIZED ELECTRICITY IN REMOTE AREAS OF INDIA
by
MANSA RAM NOUNI Centre for Energy Studies
Submitted
in fulfillment of the requirements of the degree of
DOCTOR OF PHILOSOPHY
to the
Indian Institute of Technology Delhi
Hauz lams, New Delhi - 110 016 (India)
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CERTIFICATE
It is hereby certified that the thesis entitled "Techno-Economic Evaluation of Renewable Energy Options for Decentralized Electricity in Remote Areas of India", which is being submitted by Mr. Mansa Ram Nouni is entirely the result of his own efforts. The work was carried out under our supervision and has not been accepted in substance or in part of any degree/diploma and is not being concurrently submitted in candidature for any other degree/diploma to any other university or institute.
Dr. S. C Mullick Professor
Centre for Energy Studies
Indian Institute of Technology Delhi Hauz Khas, New Delhi - 110 016 (India)
Dr. T. C Kandpal Professor
Centre for Energy Studies
Indian Institute of Technology Delhi Hauz Khas, New Delhi - 110 016 (India)
ACKNOWLE DGE ME NT
Inspiration for undertaking a research study on techno-economic evaluation of renewable energy options for decentralized electricity supply in remote areas of India originated from a workshop organized by the Ministry of Non-Conventional Energy Sources (MNES), Government of India on 'Options for rural electrification in difficult and remote areas' on 15th September 1999 under the chairmanship of Dr. Montek Singh Ahluwalia, the then Member (Energy), Planning Commission, Government of India.
This thesis could not have been completed without encouragement, guidance, support, help, perseverance and blessings of my senior colleagues at the MINES, my teachers at IIT Delhi, my friends, colleagues, well wishers and last but not the least my elders and family members.
I am grateful to the Ministry of Non-Conventional Energy Sources for providing me an opportunity to undertake research study at IIT Delhi. I express my sincere gratitude to Secretary, MNES; Shri A.K. Mangotra, Dr. E.V.R. Sastry, Dr. B.M.S. Bist and Dr. B.
Bhargava my senior colleagues in the ministry for their encouragement, support and help. I am also thankful to Dr. S.K. Chopra for his keen interest in this study.
Prof. S.C. Mullick and Prof. T.C. Kandpal, who have been my teachers for about 18 years, not only provided constant guidance in the research work but also have been source of strength, support and encouragement to me at many difficult personal moments. In fact, Prof. T. C. Kandpal always inspired me to undertake research ever since I completed my M. Tech. He readily agreed to provide guidance to me when I approached him with the research problem in the year 2000.
iii
I express my sincere gratitude to Prof. M.G.K. Babu, Head, Centre for Energy Studies (CES), Prof. Avinash Chandra (former Head), CES and the Director, IIT Delhi for providing facilities for undertaking research work at IIT Delhi. I am also thankful to Prof. Arun Kanda, Department of Mechanical Engineering; Prof. R. Balasubramanian, Prof. T.S. Bhatti and Prof. S.C. Kaushik from CES, IIT Delhi for their valuable suggestions during the course of research work I am also thankful to Dr. Subodh Kumar, CES for his cooperation and support.
I would like to thank Dr. Ashvini Kumar, Shri RP. Sharma, Shri G.R. Singh, Shri Anand Narvane and Shri N. Ghatak my colleagues in the Ministry of Non-Conventional Energy Sources; Shri A.K. Tyagi from Uttaranchal Renewable Energy Development Agency, Dehradun; Shri K. Raghavan (formerly from TERI, New Delhi) and Dr. Avanish Kumar Tiwari in providing valuable inputs required for completing the research work
I am thankful to Dr. Atul Kumar, Dr. Pallav Purohit, Dr. B. Chandrasekhar, and Dr. Ishan Purohit my fellow research colleagues at the CES for their help, inputs and stimulating technical discussions on different aspects of the research work
No words would be enough for constant physical and emotional support, encouragement and help provided by Bijju, my life partner and Venu, my son, who have stood by my side throughout the duration of the research work in-spite of many difficult periods.
JV
(Mans a Ram Nouni)
ABSTRACT
The option of extending electricity grid and also of decentralized electricity generation based on renewable sources of energy have been examined in this study for providing electricity to remote and inaccessible villages in India. The study has been undertaken in view of the fact that it may not be possible to provide grid connectivity to about 24,500 villages in India because of their remoteness and/or economic viability considerations. Cost of delivered electricity in remote and inaccessible villages through grid extension mode has been estimated. Its estimated values have been found to be prohibitively high for small remote villages in hilly and inaccessible areas requiring electricity for lighting end use only. Techno- economic evaluation of four renewable energy based decentralized electricity generation technologies: micro hydro power projects, dual-fuel or 100% producer gas biomass gasifier based power generating projects, photovoltaic projects and small wind electricity generator projects has been undertaken based on the cost details of some actual projects installed (or under installation) in India during recent years. Effect of variation in resource availability (in case of solar and wind) on the delivered electricity output of the photovoltaic projects and small wind electricity generators has been studied along with variation in the cost of electricity generated due to variation in the rated capacity of the decentralized electricity generation options. The results of the calculations made for the levelised unit cost of electricity in the study indicate that in a variety of situations the renewable energy based decentralized electricity supply options considered in the study could be financially attractive as compared to grid extension for providing electricity in small remote villages. One possible approach for identifying the potential villages suitable for providing electricity through different renewable energy based decentralized electricity generation options has been suggested and the results of the same are presented. Power supply by micro hydro projects
appears to be the best option for hilly areas (subject to availability of the resource) and could be preferred to grid extension option even if the extension required is about 2 km. Dual-fuel biomass gasifier based decentralized electricity generating units appear to be the second best option for remote villages (subject to availability of biomass on a sustainable basis) with number of households up to 75. PV and small wind electricity generators could be suited for providing electricity for lighting and powering televisions and transistor radios to villages with 20 households or less (in case micro hydro and biomass resources are not available and assuming either wind or solar resource is available).
TABLE OF CONTENTS
Certificate ii
Acknowledgements iii
Abstract v
List of Figures xiii
List of Tables xvi
Nomenclature xx
Chapter 1 Introduction and Literature Review on Decentralized Electricity Generation Using Renewable Energy Technologies
1.1 Background 1.1
1.2 Indian Power Sector 1.7
1.3 Decentralized Electricity Generation 1.9 1.3.1 Commonly used terms for decentralized electricity 1.10
generation
1.3.2 Drivers of decentralized electricity generation 1.10 1.4 Renewable Energy based Decentralized Electricity Generation 1.12 1.4.1 Decentralized power from renewables in India 1.12 1.5 Resource-Technology Combinations for Decentralized Electricity 1.13
Generation
1.5.1 Biomass gasifier based power generation systems 1.13 1.5.2 Biogas based power generation system 1.14 1.5.3 Bio-oil based power generation 1.15 1.5.4 Producer gas/biogas based micro turbines for power 1.15
generation
1.5.5 Micro hydro power plant 1.16
1.5.6 Photovoltaic (PV) systems 1.17
1.5.7 Small wind electric generators (SWEG) 1.17
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1.5.8 Systems based on linear solar concentrators 1.18 1.5.9 Systems based on solar central tower receiver systems 1.18 1.5.10 Solar parabolic dish-Stirling engine systems 1.19 1.6 Indian Initiatives for Promoting Decentralized Electricity 1.19
Generation
1.6.1 Remote village electrification programme 1.20
1.6.2 Electricity Act 2003 1.20
1.6.3 National Electricity Policy 2005 1.21 1.6.4 Scheme for rural electricity infrastructure and household 1.21
electrification 2005
1.7 Literature Review on Decentralized Electricity Generation using 1.22 Renewable Energy Technologies
Chapter 2 Grid Extension Option for Remote Areas
2.1 Introduction 2.1
2.2 Delivered Cost of Electricity in Rural Areas through Grid 2.2 Extension
2.2.1 Cost of electricity generation 2.2 2.2.1.1 Pit-head coal thermal power plants 2.2 2.2.1.2 Load-centre coal thermal power plants 2.3
2.2.1.3 Plant load factor 2.3
2.2.1.4 Electricity output of power plants at bus bar 2.3 2.2.1.5 Station heat rate and specific coal 2.4
consumption of coal thermal power plants
2.2.1.6 Levelised unit cost of electricity (LUCE) from 2.4 coal thermal power plants
2.2.1.7 Cost of generation from large hydro power 2.5 plants
2.2.1.9 Cost of electricity generation considered in the study
2.2.1.10 Transmission and distribution losses
2.7 2.8 2.2.2 Cost of transmission of electricity 2.8 2.2.3 Cost of distribution of electricity 2.9
2.2.4 Delivered cost of electricity 2.11
2.3 Conclusions 2.12
Chapter 3 Micro Hydro Projects for Decentralized Electricity Supply
3.1 Introduction 3.1
3.2 Framework for Financial Analysis 3.2
3.3 Assumptions and Input Parameters 3.5
3.4 Results and Discussion 3.8
3.4.1 Capital cost 3.8
3.4.2 Cost per unit of rated capacity 3.10
3.4.3 Unit cost of Electricity 3.13
3.4.4 Measures of Financial Performance 3.13
3.4.5 Breakeven Analysis 3.14
3.4.6 Effect of financial incentive(s) on the levelised unit cost of electricity
3.14
3.5 Conclusions 3.16
Chapter 4 Biomass Gasifier Based Power Projects for Decentralized Electricity Supply
4.1 Introduction 4.1
4.2 Framework for Financial Analysis 4.3
4.2.1 Electricity Delivered by Biomass Gasifier Power Project 4.3 4.2.2 Capital cost of biomass gasifier based power project 4.4
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4.2.3 Levelised unit cost of electricity 4.4
4.3 Assumptions and Input Parameters 4.6
4.3.1 Capacity utilization factor of BGPP 4.6 4.3.2 Specific fuel consumption at full loads 4.6 4.3.3 Specific fuel consumption at part loads 4.7
4.3.4 Useful life of gasifier 4.8
4.3.5 Useful life of diesel engine operating in DF mode 4.9
4.3.6 Cost of biomass feedstock 4.9
4.3.7 Cost of diesel and bio-diesel 4.10 4.3.8 Miscellaneous input parameters 4.10
4.4 Results and Discussion 4.11
4.4.1 Capital cost 4.11
4.4.2 Cost per unit of rated capacity 4.12 4.4.3 Unit cost of electricity at full loads 4.13 4.4.4 Unit cost of electricity at part loads 4.13 4.4.5 A single larger capacity system versus two smaller 4.14
capacity systems
4.4.6 Break-even price of diesel 4.15
4.4.7 Break-even price of bio-diesel 4.15 4.4.8 Effect of financial incentive(s) on unit cost of electricity 4.16
4.5 Conclusions 4.17
Chapter 5 Photovoltaic Projects for Decentralized Electricity Supply
5.1 Introduction 5.1
5.2 Framework for Financial Analysis 5.3
5.2.2 Capital cost of PV project 5.4 5.2.3 Levelised unit cost of electricity 5.4 5.3 Assumptions and Input Parameters 5.5
5.4 Results and Discussion 5.6
5.4.1 Electrical power output of PV projects 5.6
5.4.2 Capital cost 5.7
5.4.3 Cost per unit rated capacity 5.9 5.4.4 Unit cost of Electricity 5.9 5.4.5 Effect of financial incentive(s) on unit cost of electricity 5.10
5.5 Conclusions 5.12
Chapter 6 Small Wind Electricity Generator Projects for Decentralized Electricity Supply
6.1 Introduction 6.1
6.2 Framework for Financial Analysis 6.4 6.2.1 Electrical power output of an SWEG project 6.4 6.2.2 Capital cost of SWEG project 6.5 6.2.3 Levelised unit cost of electricity 6.5 6.3 Assumptions and Input Parameters 6.6
6.4 Results and Discussion 6.8
6.4.1 Electrical power output of SWEG projects 6.8
6.4.2 Capital cost 6.10
6.4.3 Unit capital cost 6.11
6.4.4 Reduction in unit capital cost due to learning effect 6.12 6.4.5 Unit cost of electricity 6.13 6.4.6 Effect of financial incentive(s) on unit cost of electricity 6.14
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6.4.7 Sensitivity of LUCE 6.15
6.5 Conclusions 6.16
Comparison of Options for Decentralized Electricity Supply in India and Identification of Niche Areas
7.1 Introduction 7.1
7.2 Estimation of electrical loads in remote villages 7.1 7.3 Cost of electricity from decentralized generation options 7.2 7.4 Comparison of unit capital cost and cost of delivered electricity 7.4 7.5 Potential Areas for Decentralized Electricity Supply Options 7.5 7.5.1 Critical distance of grid extension 7.5 7.5.2 Potential areas for renewable energy based decentralized 7.6
electricity generation
7.6 Conclusions 7.8
Conclusions and Recommendations 8.1
Chapter 7
Chapter 8 References Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H
Definitions of an electrified village
Average exchange rate for the Indian Rupee vis-a-vis US Dollar Estimation of load and Plant Load Factor for Karmi II MEP project being implemented in the state of Uttaranchal
Estimation of cost of electricity delivered by a 50 kWe diesel generating (DG) set
Method used for estimating break-even price of diesel for making HPG BGPP attractive vis-a
-
vis DF BGPPMethod used for estimating monthly average daily global radiation incident on PV array
Approach used for estimating annual electricity delivered by a wind electricity generator
Status of district wise village electrification based on 1991 census
