Policy Development Requirements for Biogas Upscaling in India

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    DIREC 2010

    Workshop on Bio-methanation - Upscaling

    Challenges and Opportunities

    Policy Development Requirements for Biogas

    Upscaling in India

    Dr. A.R. Shukla

    Adviser (Bio-energy)

    Ministry of New and Renewable Energy

    Email: [email protected]

    27th October 2010

    mailto:[email protected]:[email protected]
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    Ministry of New and Renewable Energy

    Bio-energy Technology Development Group

    Biogas Dissemination Programmes:

    National Biogas and Manure Management

    Programme (NBMMP).

    Biogas Based Distributed/Grid Power Generation

    Programme.

    Recovery of Energy from Industrial Wastes.

    Recovery of Energy from Urban Wastes.

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    Ministry of New and Renewable Energy

    Bio-energy Technology Development Group

    Biogas R&D and Technology Demonstration Programme:

    Demonstration of Integrated Technology Package on

    Biogas-Fertilizer Plants (BGFP) for Generation,

    Purification/ Enrichment, Bottling and Piped

    Distribution of Biogas.

    Establishment of Business Model for Demonstration of

    an Integrated Technology Package for creation of

    smokeless villages using biogas/ bio-energy systems and

    meeting Life-line Energy envisaged in Integrated

    Energy Policy

    R&D and technology development in biogas, bio-

    fertilizer and bio-energy refinery.

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    11/16/2010 4

    CFA/ Subsidy for installation 20-50% of cost Administrative costs

    Capacity building through:

    Training of officials, plant operators/users

    Information dissemination

    Sponsorship for Research and Development

    Provisions in the Electricity Act 2003

    Open access to grid for RE power

    Preferential tariffs by State regulators

    Targets for RE power

    Introduction of Renewable Energy Certificates

    Captive generation decontrolled

    Government Support for BiogasProgrammes

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    Approved CFA under National Biogas and

    Manure Management Programme for 11th Plan

    Category CFA (2-4 m3

    Plant) (Rs.)CFA (1 m3 Plant)

    (Rs.)

    1. NER States 14,700/- 14,700/-

    2. Notified hillyareas, J&K and Plain

    areas of Assam

    10,000/- 9,000/-

    3. All other States 8,000/- 4,000/-

    4. Support for

    Training courses

    2000 67,500/-

    5. Turn key Job-fee

    1500/-

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    Large Sized Biogas-Fertilizer Plant

    Technology Demonstration Projects**

    Proposals have been received under Demonstration of Integrated Technology Package on BGFPs for generation,purification, bottling and piped distribution of biogas in thecapacity range of 20020,000 m3 and above in response to EOIof the Ministry.

    * Excluding cost of land.

    **Limited nos.

    Sl. No. Biogas Generation

    Capacity (m3)

    CFA for Biogas Purification,

    Bottling/ Distribution Applications*

    1. 200-1000 50% of the cost of the project

    2. 1,100 - 5,000 40% of the cost of the project

    3. 5,100 - 10,000 35% of the cost of the project

    4. 10,100 - 20,000 and above 30% of the cost of the project

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    Biogas based Distributed/ Grid Power

    Generation Programme: Central Financial

    AssistancePower generating

    capacity

    Biogas plant

    capacity

    CFA/subsidy limited to the

    following ceiling or 40% of the

    cost of the system whichever

    is less.

    3 -20 kW 25 cu. m to 85 cu.m `40,000 per kW

    >20 kW to 100 kW Any combination of

    above plants or

    alternate capacity/design

    `35,000 per kW

    >100 kW to 250 kW Any combination of

    above plants or

    alternate capacity /

    design

    `30,000 per kW

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    11/16/2010 8

    Programme for Energy Recovery from

    Industrial Wastes: Central Financial

    Assistance*Bio-methanation of

    Low Energy Density &

    Difficult Wastes:

    `10 million/ MWeq (12000

    Cu.m. biogas per day)

    Power generation

    from Solid Industrial

    Waste (Boiler +

    Steam Turbine):

    `2.0 million/ MW

    Power generation from

    Biogas

    (Boiler + Steam Turbine):

    `2.0 million/ MW

    Bio-methanation of other

    Wastes: `5.0 million/

    MWeq (12000 Cu.m.

    biogas per day)

    Power generation

    from Biogas

    (Biogas Engine/

    Turbine):

    `10 million/ MW

    *Limited to 20% of Project

    cost *Limited to `50

    million per Project

    *For Special Category

    States: 20% higher than

    that of other States

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    11/16/2010 9

    Programme for Energy Recovery from

    Urban Wastes: Central Financial Assistance

    Projects based on Bio-

    methanation Technology

    from cattle dung, vegetable

    market & slaughterhousewastes generated in urban

    areas:

    For Power generation:

    `30 million*/ MW

    For Thermal Applications:

    `10 million*/ MWeq

    (12000 Cu.m. biogas per day)

    *Limited to 50% of Project

    cost

    Projects based on

    Bio-methanation

    Technology from a

    mix of cattle dung,vegetable market &

    slaughterhouse

    wastes and

    agricultural Wastes:

    For Power

    generation:

    `20 million*/ MW

    *Limited to 30% of

    Project cost

    Projects based on

    Biogas generated at

    Sewage Treatment

    Plants:

    For Power

    generation:

    `20 million*/ MW

    *Limited to 40% ofProject cost

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    Revenue sources from the project

    Sale of Power

    Sale of Biogas

    Sale of Bio-fertilizer and Bio-pesticideCERs

    Sale of CO2 Government Support

    Financial Incentives Fiscal Incentives

    Customs and Excise Duty Exemption

    Income Tax concessions

    Financial Viability of Biogas-FertilizerProjects

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    Application-wise Biogas Plants installed,

    Estimated Biogas Production and Power

    Generation capacity

    Sl.

    No.

    Type of Biogas Plants No. of

    Biogas

    Plants

    installed

    Estimated Biogas

    Production capacity

    In million

    m3 per day

    Power

    Generation

    1. Family size Biogas Plants for

    cooking applications.

    4,274,831 8.5072 For cooking

    requirement

    2. Small size Biogas plants for

    electricity generation.

    73 0.0042 0.44 MW

    3. Large size Biogas Plants based

    on Urban and Industrial wastes

    for power generation.

    70 0.5466 91.11 MW

    Total 4,274,974 9.0580 91.55 MW

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    11/16/2010 12

    Mandatory provision for installation of Biogas-Fertilizer plants.

    Introduction of Generatation based Incentives forbiogas based Power.

    Introduction of financial incentives for Bio-fertilizers and Bio-pesticides similar to chemicalfertilizers.

    Exemption from VAT and other taxes.

    Preparation of Standards for Compressed Biogas(CBG) and Bio-fertilizer and bio-pesticide.

    Acceptance as vehicular fuel.

    Development of CBG cylinders.

    Desired Policy for PromotingBio-methanationSector

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    THANK YOU

    Website: mnre.gov.in

    [email protected]

    [email protected]

    mailto:[email protected]:[email protected]:[email protected]:[email protected]