Fuel barter model for biomass power generation in India
To develop a barter model linking the supply of electricity to farmers to a regular quantity of biomass supplied to the power plant throughout the year, creating a win-win-win situation for the farmer, the project developer and the utility, piloted around a proposed 8MW biomass plant in Rajasthan.
- Design a survey to assess biomass availability; productive consumption of electricity and competing use of biomass in the specified area
- Conduct the survey on the willingness and capability of farmers to organize themselves, the unmet energy demand, and potential for new businesses with more power availability
- Develop a preliminary concept for the business model and canvass it with farmers and the utility
- Develop the final design, including material and energy flow sheet and commercial transactions flow sheet, and identify the financing needs for the residue collection system
- Hold discussions with potential lenders
- Conduct workshop in specified area to win greater participation of farmers
- For farmers, higher income from sale of biomass, a reliable power supply at no additional cost, and an alternative source of ash as manure
- For utilities, a better tariff realization from a subsidised consumer category and improved contribution of renewable energy in fuel mix
- For owners of the power plant, protection from fuel price volatility and uncertain fuel availability
- Reduction in land burning, and a net emission reduction of 25,000 tons of CO2e
- Replication of the business model for rural biomass based power generation.