What is the most economical alternative for the production of electricity to

overcome power failure?

Prepared for: Ms. Maliha Shah

Lecturer of Business Communication

Prepared by: Abdullah Khalil

Waqar Shahid

Nauman Bashir

Roll No: 2012 (Fall) BBA -12-083

2012- (Fall) BBA-12-080

2012- (Fall) BBA-12-089

IB&M - University of Engineering & Technology, Lahore

6 May, 2014

Transmittal

TO: Abdullah Khalil, Waqar Shahid, Nauman Bashir

FROM: Ms. Maliha Shah

SUBJECT: To find the most economical alternative for the production of electricity.

On April 15, 2014, Ms. Maliha Shah, course instructor of Business Communication assigned us a report as our final term project, to find the most economical substitutes for electricity generation in Pakistan. We were asked to find out the root causes of the problem and to come up with sound suggestions for the Issue.

The study was conducted through (questionnaire based survey) and after two weeks of work, we found out that biogas energy system can provide us most economical electricity at the rate of less than a rupee.

It was concluded that biomass not only provide most economical electricity but also it is ecofriendly process because it uses wastes and residues as fuel for electricity generation.

This recommendation made in this regard suggested that this project needs major attention as it requires sound first time investments.

We are grateful for being given an opportunity to contribute towards the development of energy sector in Pakistan. This research will be quite useful for the betterment of the country.

Acknowledgment

All praise to Allah Almighty, who gave us the courage and opportunity to carry out this investigative research.

We would like to thank Mr. Asad Rehman for his massive help in work.

We are also grateful to Ms. Saba for her huge support in this research.

This study would not have been possible without the continuous support and guidance of our subject lecturer Ms. Maliha Shah

Abstract

This study aimed to examine the most economical resource for electricity generation by which power failure can be controlled. For this purpose, a research was done to find out the root causes of the problem alongside providing solution by selecting 50 students from different departments of University of Engineering and Technology, Lahore. Questionnaire based methodology was used to collect data and regarding information. Statistical procedure was used to record the data extracted from the questionnaires in Excel which provided percentages of every answer received from the students. The study found out that biomass can be the most effective and most economical power generation resource because of its ecofriendly nature and the easy availability of its fuel

(biofuel).the fuels used in biomass system are quite economical as compared to other procedure fuels. Based on the findings from the data, it was concluded that biomass system not only provide us power but also provide us the environmental benefits. Furthermore, it was recommended that the general public should be taken in confidence about the project and provide them sufficient information about biomass system.

CONTENTS

Letter of Transmittal………………………………………………………………………….i

Acknowledgement…………………………………………………………………………..ii

Abstract……………………………………………………………………..…… iii

Table of Contents………………………………………………………………………..….iv

List of Tables…………………………………………………………………………….….v

1. Introduction……………………………………………………………….…………...1.1 Background…………………………………………………………….

…….……..1.2 Purpose of the Study…………………………………………………….

………..... 1.3 Problem Statement…………………………………………………...

…………….1.4 Research

Objectives…………………………………………………………….….1.5 Scope of the

Study…………………………………………………………………1.6 Limitations of the

Study…………………………………………………………...1.7 Methodology of the

Study………………………………………………………....2. Literature

Review……………………………………………………………………..Methodology…………………………………………………………………………..

3.1 Population……………………………………………………………………..3.2 Sample…………………………………………………………………..……..3.3 Sampling Technique…………………………………………………………..3.4 Research Design……………………..………………………………………...3.5 Instruments Used ………………..…………………………………………......

3.6 Statistical Procedure Used……………………………………………………...

4. Findings & Discussion …...………………………………………………………….

4.1 Key findings and results………………………………………………………..

4.2 Discussions……………………………………………………………………..

5. Conclusions & Recommendations…………………………………………………..

5.1 Conclusion……………………………………………………………………………..

5.2 Recommendations………………………………………………………………………

References…………………………………………………………………………………..

Appendices………………………………………………………………………………….

Appendix A…………………………………………………………………………………

Appendix B………………………………………………………………………………….

List of Tables

1. Introduction: Table for projection on demand and supply

2. Literature Review: Graph on performance of biomass system

3. Key Findings and Results: Graph on performance of biomass system

1. Introduction

1.1Background

In 1947, Pakistan had inherited 60 MW power generating ability for a population of 31.5 million people and this was expanded to 119 MW by 1959, because the country was stepping ahead in progress. The government established a new institution in 1958 whose sole purpose was to provide guidance for Govt. about the projects on water and electricity that institution was Water and Power Development Authority (WAPDA), after its first 5 years of operation, WAPDA extended the electricity

production capacity up to 636 MW and the number of villages having electricity increased significantly from 609 to 1882. The speed of electricity generation boosted up in the 1970s and 1980s to 1,331 MW in 1970, followed by further growth up to 3,000 MWs in 1980 and 7,000 MW by 1990/91.

However, Due to rapid growth of industries, factories, urbanization and noteworthy increment in population of Pakistan demanded a significant increase in production of electricity led to a shortfall of electricity in the 1990s, requiring approximately 1500-2000 MWs of electricity annually at 9-10% rate (1). But the government of that time dealt this problem with iron hands providing sufficient incentives for power generating private sector in1994, though shortfall of electricity was controlled but after many years governments couldn’t control the power deficit which led to crucial energy crises that the nation has ever seen. There were not any power generation projects that could control the energy deficit in the long run, but one special project that came into consideration named Kalabagh dam, was politically sabotaged because some states of Pakistan were of the view that their water supply would be shortened if this mega project was actually operated. So the energy deficit went on increasing day by day causing severe damages to the economy of Pakistan, there were many small projects working for the generation of electricity but controlling the shortfall with these kind of projects was out of question. In the recent years government faced a severe shortfall of electricity when the supply and demand of electricity difference was shockingly 5529 MWs in 2010, to tackle this situation, Prime minister of that time Raja Pervaiz Ashraf took an initiative to overcome this shortfall by purchasing the ready-made electricity from the independent power producers (IPPs) but the project wasn’t successfully operated because the electricity bought from the IPPs was expensive, the government asked for massive loans from IMF which lead to a huge setback to Pakistan’s economy. The government already generating electricity through

hydroelectric energy, Oil, Natural gas, thermal power plants, wind turbines etc. Rather than to go for other resources for electricity generation, government Purchased ready-made electricity from the IPPs which turned out badly for the economy. The country is now facing the worst ever energy deficit.

Table of projection for demand and supply

Projection for Demand and SupplyNo. Year Firm Supply (MW) Peak Demand (MW)

Surplus/(Deficit) (MW)1 2008/09 15,055 19,080 (4,025)2 2009/10 15,055 20,584 (5,529

1.2 Purpose of Study:

The purpose of this study is to find out the paramount substitutes for the power

generation. Out of many resources, bio mass may be the most effective resource for the

production of electricity. Because in a third world country like Pakistan, cheap resources like

those used in biomass system will be effective in the waste disposal as well as in the

generation of electricity that our country is currently facing terribly. Therefore, the present

study was designed to determine the effectiveness and practical applicability of bio-resources

for power generation.

1.3 Problem Statement:

For the last decade, there’s been a huge shortfall of Electricity because of

Government’s negligence towards power generation by using different cheap alternatives.

Therefore, this study is conducted to find out the cheap and best alternative resources for the

production of electricity.

1.4 Research Objectives:

The current research aims to have a public’s perception about the most economical

resource of electricity (biomass energy).

Is this energy project feasible in Pakistan? If so, to what extent then?

Can it fulfill the energy requirements of Pakistan?

Will it be quite cost effective than other resources already operating in power

generation process?

Are the resources of Biomass available readily in Pakistan?

Can equipment be a problem for this project? Would it be costly than other systems

already being used in Pakistan for electricity generation?

Can it be environment friendly system because of garbage consumption in this energy

system?

1.5 Scope of Study:

The search for the most economical substitute for Power generation will be quite

helpful to eliminate the electricity shortfall which is being faced by our country for the past

10-20 years. This project is quite feasible in our conditions, considering the environmental

behavior of Pakistan. Pakistan is mostly comprised of plain areas having massive population

which helps the feasibility of Biomass system, because Garbage can be accommodated as a

general resource of biomass energy system for electricity generation. Other resources for

biomass system can also be easily achieved easily. In Pakistan Weather remains pretty hot in

most part of the year, as the solar energy can also be used as a resource for biomass system, it

is easily available in Pakistan along with plants especially Corn are also readily available in

Pakistan.

1.6 Limitations of the Study:

This research was conducted among the students of University of Engineering and

Technology, Lahore. Students of Electrical, Mining, Polymer and process, Environmental,

Architectural & design engineering, Business students from IBM were questioned in this this

research. This research could have been a lot better if people of different age groups of

different sectors were questioned about the project that is being discussed in this reseach.

1.7 Methodology of Study:

This research was conducted as a questionnaire based survey in University of

Engineering and Technology, Lahore. 50 Students of Different departments were questioned

in this research. They were provided with closed ended questionnaires. Result of

questionnaires were Based on the percentage of responses for each question, Pie graphs were made through Excel.

2. Literature Review

Mostly people are only aware of the fact that power can only be generated by using

wind, hydroelectric energy, solar energy and other resources but the oldest source of

renewable energy is biomass system. Biomass has provided a lot of energy for a very long

time if it is properly provided with fuel and used accordingly to our needs which are

obviously to produce electricity and gain maximum advantage from this natural resource as

we can. It can do wonders as in recent years it has surpassed in providing electric power than

solar r wind energy and it is also revealed that in terms of capacity it could be the second

largest power generation source. Biomass is a crucial renewable energy source having its

unique resources like, urban wastes, forest remains, waste water treatment biogas, woody

relics, manure biogas and crop deposits etc. As other resources for electricity generation have

environmental risks there are some for biomass too like it can consume a large amount of

water, can initiate air pollution etc. However, many scientists believe that there are many

resources of biomass which can be use d for power generation with their minimal effect on

the environment which is quite a positive sign towards the use of biomass system in Pakistan.

Biomass is actually a renewable energy source, not only because it can also be

achieved from the sun but also due to its re-growth within a very short period of time. A

question that often comes in our minds is that whether sunlight is used in biomass system or

not? The answer is yes, because when the plants do a process of photosynthesis, they absorb

sunlight energy by the conversion of carbon dioxide from air and ground water into

carbohydrates. Carbohydrates are the composite compounds or structures of oxygen, carbon

and hydrogen. When carbohydrates are burnt the energy is released along with the CO2 and

water. It shows the operation of biomass as a natural battery which can store solar energy and

can provide us with an everlasting renewable energy if its low-carbon resources are kept

intact and it can prove quite cost effective as well as there is no oil or other expensive

resources are required for it to generate electricity (2).

Heading towards the estimated analysis on electricity generation through urban wastes

(solid wastes) in Pakistan. Lahore city presently consumes 1000 MW electricity per hour and

it generates the solid wastes of about 5700 ton/per day. So the electricity produced from

fixed investment of 29,272,333 $ by the solid waste of Lahore city turned out to be 85.5

MW/H, providing 1/11th of the total demand of Lahore city, but the significant note taking

was the price of the electricity generated which turned out to be less than a rupee per unit.

Energy produced by solid waste (biomass) will be extra-ordinary cheap and the procedure

will have positive impacts on the environment as well, because the solid waste including,

human waste, food wastage etc. will be recycled for the generation of electricity (3).

Forest residues and wood wastes also used as a fuel in the production of electricity

through biomass system. These are basically the remains of trees left by the process of

harvesting. Theses residues normally contain a massive amount of energy (5140 BTU/pound)

(wet) and it extends to 8570 BTU/pounds when they are dry. The cost of forest residues is as

low as 15 $ to 25 $ per ton indicating forest residue as a very economical resource for

electricity generation in the biomass system, depending on its availability in a country (4). In

a country like Pakistan which is pretty rich in forests and other natural resources, this forest

residue methodology can quite easily work out in the biomass energy system.

One of the important agricultural residues that are used in biomass system for power

generation is corn stover and wheat straws. Both contain massive amount of energies in dry

and wet form. Energy contained in corn stover is 5,290 Btu/lb (wet) and 7,560 Btu/lb

(dry) as well as in wheat straw the amount of energy stored can equal to 5,470 Btu/lb (wet)

and 6,840 Btu/lb (dry). Price of corn stover varies from $20 to $40/ton whereas the wheat

straw costs at an estimated price of $50 per ton. Talking about Pakistan, an Agricultural

country, these agricultural residues would be readily available (4).

Through biomass system, Bio power (electricity) can be produced using the following

methods: direct fired, co-fired, gasification and pyrolysis processes.

Direct fired process in biomass energy system for generation of electricity consumes

100% biomass (wood remains, forest remains, urban wastes etc.) which is burnt

conventionally in boiler, an excessive amount of steam is produced by which the turbines

work and generate electricity.

Gasification process involves the transformation of biofuel into carbon monoxide

(CO) and hydrogen (H2) when a reaction of raw materials takes place at high temperature

along with the precise amount of steam or oxygen, produces electricity.

Pyrolysis process for generation of electricity in biomass energy system involves the

transformation of solid biomass into the transported liquid substance when feed-stock were

reacted to enormous temperature in the absence of oxygen.

Anaerobic digestion process involves the attainment of methane gas evolving from

the decomposed matter (biomass).

The following graph shows the importance of biomass as electricity producer in the

United States of America as they are trying to achieve maximum energy from biomass and

are willing to extend this project for their long term benefits regarding energy requirements

for the upcoming years (5).

3. Methodology

3.1 Population:

Population of this study involves the students of University of Engineering and Technology, Lahore. Students from engineering and business departments were questioned randomly.

3.2 Sample:

50 students of different departments (engineering and business) were selected as a sample for this research study in University of Engineering and Technology, Lahore. students from departments like electrical, polymer and process engineering were amongst the top priorities for this research due to their general knowledge in this field.

3.3 Sampling technique:

For the purpose of this research, sample was selected through convenient search. Students from different engineering departments were asked to give their perception about the project by filling out the questionnaires. Preferably students of electrical, polymer and process and chemical engineering were asked to fill out the questionnaires.

3.4 Research Design:

This research used questionnaire based survey to gather the quantitative information or data about this study. The results generated from this quantitative data were formulated and demonstrated in the form of Pie graphs showing percentage of response for each option of answer in the questionnaire.

3.5 Instruments used:

Close ended questionnaire based survey was only the instrument used in this research. Each question was provided with 3 options which stood for:

1=Yes

2=No

3=Maybe (neutral)

This questionnaire was filled out by the 50 students which were selected randomly at University of Engineering and Technology, Lahore.

3.6 Statistical Procedure Used:

Data of the questionnaire was computed separately with the help of Microsoft Excel. The percentage of respondents who chose each option on questionnaire for each question was used to illustrate data into Pie graphs.

4. Findings & Discussions

4.1 Key findings and Results:

This research has shown the feasibility of biomass energy system on a large scale.

The graph depicts the importance and value of biomass system for power generation in a country. These are the statistics of USA where biomass system is already working successfully on a larger scale. According to this graph, biomass has surpassed wind energy, solar energy and geothermal energy in the generation of electricity.it has become the second largest resource for the generation of power. In the upcoming years, its value would increase by a huge margin because the world would likely to go for such methods in the production of electricity which provide no harm or could be less harmful than other procedures for the generation of power. Biomass is actually the ecofriendly method which generates power and electricity.

It has been revealed by the research that the residues and remains of food, wood, waste water and forests etc. can produce biogas through which Steam is produced which runs the turbines and electricity is produced in this way through biomass system.

The biofuels used in biomass energy system are way more economical than other fuels being used in different procedures for electricity generation. In Pakistan there are many forests as well as the production of wheat and corn is way more than many other countries enables Pakistan to use this method quite easily. The garbage or solid waste of only Lahore city is around 5700 ton/day and if 29,272,333 $ are invested on fixed basis in biomass energy system it will generate almost 85.5 MW/h of electricity in the most economical price range of less than a half of rupee (PKR). If only one city can manage to produce such amount

of electricity only through solid waste (biomass system) then it would be amazing to see how much energy can be produced by the whole country with these projects working everywhere along with other resources in a country.

Financing can be a major issue for the inception of this project but the biomass energy project is never going to fail but it requires a huge amount of investment on fixed basis once the investment is made, it will provide us with the most economical electricity because the biofuels are way more economical then other power alternatives.

4.2 Discussion:

The purpose of this questionnaire based research is to find the most economical alternative for the production of electricity. As discussed, biomass energy system can provide us electric power within a most economical price range of less than a rupee. According to the students of University of Engineering and Technology, Lahore the biomass system for electricity generation would be feasible to quite extent as the percentage of mostly questions asked by them was on the higher side of acceptance of project. But most of the general public is unaware of the term biomass which means, it’s out of question that they know about the generation of electricity through biomass system. Somehow, the results of the survey showed that almost 30-40 % of students were not sure whether this project could work in Pakistan or not? As Pakistan is an agricultural country enriched with many natural resources, amongst them the biofuels used in biomass system for generation of electricity are easily available. But this project demands one time heavy investment and then it will provide us with the luxury of having economical energy. If a state is not financially sound and stable the government can use the second hand equipment for this system to make applicable in Pakistan, if the equipment is in fine condition then government should have it because it

will save enough money to be spent somewhere else in the project like in the increment of labor etc.

Mostly students denied that solar energy can be used in this procedure. Plants do the process of photosynthesis, during this process plants absorb sunlight by the conversion of CO2 and ground water into carbohydrates (complex compounds). When burnt, energy is released along with CO2 and water respectively, this energy is used for power generation.

The survey has revealed that 52% of students believed that residues like sugarcane trash, industrial residues like corn, wheat straws can be used in biomass system for power generation because these are quite economical and are readily available. These residues act as a significant biofuel in biomass system.

The study has shown that 76% of students believe that natural resources of any country can be quite effective in the production of electricity because any country enriched with maximum natural resources can generate maximum power to meet their demands, as these resources are used as a fuel in many power generation processes like excess of water in a country can be quite useful for the production of hydroelectric energy from water.

This project is already working successfully in many parts of the world like in Brazil, USA and many more countries are now taking measures to take advantage from this renewable energy resource as much as it could be possible.

According to survey, almost 60-70% people believed that the biomass system can overcome power failure which is being faced by the country if this project is applied on a large scale in country. With the provided supplement of biofuels it can generate enough electricity to meet the energy demands of Pakistan relatively.

5. Conclusion and Recommendations

5.1 Conclusion:

Biomass energy brings numerous environmental benefits particularly reducing many

kinds of air pollution and net carbon emissions and the electricity produced from this

resource is quite cost effective and economical (less than a rupee). It provides many

environmental benefits but also offers economic and energy security benefits. Because all the

biofuels are easily available in our own country reducing the requirement to import fuels

from other nations or countries, and reduces our expenses in that supply. With increasing

biomass development, farmers and forest owners gain valuable new markets for their crop

residues.

Biomass process uses wastes and residues or remains as biofuels for generation of

electricity like, wood relics, corn stover, wheat straws, solid waste (food, waste water etc.)

forest residue, manure biogas and crops residue. The different processes named direct fired,

gasification, pyrolysis and anaerobic digestion process are used for electricity generation in

biomass system.

Recently biomass system has surpassed wind energy in power generation capacity

because of feasibility and massive performance by this system on a large scale.

Biomass will become the most dependant energy resource in the upcoming decade

because of shortage of water as well as other resources.

5.2 Recommendations:

Following are some recommendations that need to be considered:

General public should be taken into confidence about the project. Provide them with

all the necessary information to know about the biomass energy project.

Fast growing trees must be planted on large scale in forests to provide biomass system

with consistent forest residue.

New biofuels must be searched as well for the enhancement of this mega project.

To increase the efficiency, the project must be extended on a large scale, supply of

biofuel must not be affected by any means.

The biofuels like urban wastes, residues of forest and wood relics must be stored

nicely at specific places.

Large number of storing facilities should be provided for biogas.

6. References

1- Chaudhry.A (September 2010) A Panel Data Analysis of Electricity Demand in Pakistan

The Lahore Journal of Economics.

2- http://www.ucsusa.org/clean_energy/our-energy-choices/renewable-energy/how-biomass-

energy-works.html

3- Khan.R (28-30 Sept. 2011) Utility Exhibition on Power and Energy Systems: Issues &

Prospects for Asia (ICUE), 2011 International Conference

4- http://www.epa.gov/chp/documents/biomass_chp_catalog_part3.pdf

7. Appendices

Appendix A

Questionnaire used for research:

S. No. QuestionOptions

Yes No May be

1. Is it convenient using biomass system than all the alternatives to

produce electric power because wastage like garbage and waste

heat can be used for electricity generation?

2. Do you think energy crisis can be fixed using cheap

alternatives?

3. Will biomass energy be effective to overcome electricity shortfall in Pakistan?

4. It is learnt that electricity produced through biomass system is

quite cost-effective, would you advocate its inception in

Pakistan?

5. In a country like Pakistan where people normally have the

excessive garbage problem,can sufficient resources for biomass

system be found for generation of power?

6. Is financing a major barrier for biomass projects?

7. Can sugarcane trash be used in the (Biomass) power generation process?

8. Do natural resources of country like Coal, natural gas, oil reservoirs and other renewable energy resources increase the capacity of the energy?

9. Can solar energy be used for power generation in biomass energy system?

10. Do biomass power generating units help combat global warming?

11. Do you recommend using second hand equipment (fine condition) for biomass power plants can reduce the cost?

Appendix B

Statistical procedure used to extract data from questionnaires on Excel is attached.