Comparison of Distributed

Generation Options for India

Rangan Banerjee
Visiting Faculty
EPP
CEIC Seminar 16th June 2003 ( on leave from IIT Bombay)

Outline of Talk
n
n
n
n
n
n

India- Energy Balance

Power Sector Balance and Trends
Distributed generation options
Non-Renewable Comparison
Renewable Options
Issues

Energy Content
n

n
n

Average Calorific Value of Indian Coal

4500kcal/kg (18.8 MJ/kg)
Average Calorific Value of Oil
10000kcal/kg (41.8 MJ/kg)
Natural Gas 9300 kcal/m3 (38.9 MJ/m3)
Nuclear, Hydro Work backwards from
generation based on plant efficiencies
Hydro 85%, Nuclear 25%

Power Generation
n
n
n
n
n
n
n

Coal 205.5 Million Tonnes

Oil 2.63 Million Tonnes
Gas 8.11 Billion m3
Hydro 311 PJ
Nuclear 151 PJ
Coal 3865 PJ, Oil 110 PJ, N Gas 315 PJ
Total Primary 4753 PJ

1997-98

1997-98

Share of Power Installed

Capacity (1998) in India
Diesel
0.4%

Wind
1.0%

Gas
8.7%

Coal
62.7%

Nuclear
2.5%

Hydro
24.6%

India - Fossil Fuel reserves

Fuel
Coal

Reserves Prodn R/P

ratio
60000
296
~200+

(Million Tonnes)

Oil

660

33.86 19 (9)

692

26.4

(Million Tonnes)

N.Gas

26

Billion m3

Nuclear Nat U

~50
Data Source TEDDY

Electricity Sector in India

n

n
n
n

Low per capita electricity consumption

(~400 kWh/capita/year)
Energy and Peak power scarcity
Large number of villages un- electrified
Significant proportion of households
without access to electricity
Electricity use linked with quality of life

Electricity
n

n
n

104 GW Installed Capacity 2002( less than 4%

of World Capacity)
Average 0.1 kW of installed capacity/capita
World installed capacity 0.53 kW/capita
Low electricity consumption Indiaabout 340 kWh/capita/year
Nepal, Bangladesh & Bhutan
lower than 100 kWh/capita/year
World average electricity consumption2100 kWh/capita/year

Electricity Sector
n

SEB annual loss 2000-1 Rs 20,500

crores (US 4400 million $)
Gap of 92 p/kWh - between cost of
supply and revenue (2c/kWh)
Peak shortage 13%, energy shortage
7%
Estimated requirement of 100,000 MW
additional capacity by 2012

Load curve of a typical day MSEB

(8/11/2000

Demand, MW

11000

source: WREB annual report-2001)

10260 MW
9892 MW

10000
9000
8000

morning
peak

Evening
peak

7000
6000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time hours

India - Electricity Sales

350000

Electricity Sales (GWh)

300000

250000

200000

150000

100000

50000

1950

1960

1970

1980

Year

1990

2000
S
e

500

Electricity Generation('000 GWh)

400

300

200
Total
100
H y d ro

0
1960

1970

1980

Year

1990

2000

Annual Capacity Additions

6000

Capacity Addition (MW)

5000

4000

3000

2000

1000

0
1960

1965

1970

1975

1980
Year

1985

1990

1995

2000

Carbon Dioxide Emissions

Kaya identity: Total CO2 Emissions
= (CO2/E)(E/GDP)(GDP/Pop)Pop
CO2/E Carbon Intensity
E/GDP- Energy Intensity of Economy
n Mitigation increase sinks, reduce sourcesaforestation, fuel mix,energy efficiency,
renewables,nuclear, carbon sequestration
n Adaptation

GHG Emissions (Fuel Cycle Analysis)

n
n
n
n
n
n
n
n
n

CO2 g/kWh
Coal Conventional 960 -1300
800-860
Advanced Coal
Source: John Holdren
690-870
Oil
460-1230 Kirk Smith, World Energy
Gas
9-100
Nuclear
Assessment, UNDP,2001
37-166
Biomass
30-150
PV
2-410
Hydro-electric
11-75
Wind

Distributed Generation Options

n

Non-Renewable
n
n

IC Engine- diesel
IC Engine- Natural
gas
Micro-turbineNatural gas
PEM fuel cellreformer - Natural
gas

Renewable
n
n

Wind Turbine
Solar Photovoltaic
(PV)
Biomass GasifierGas Engine
Bagasse Cogeneration

Comparison
n

n
n
n

Annualised Life Cycle Costs (ALCC) annual cost of owning and operating
equipment
ALCC = C0 CRF(d,n) + AC f + AC O&M
CRF (d,n) =[ d(1+d)n]/[(1+d)n-1]
discount rate d, Life n years, C0 Capital
Cost,AC f , AC O&M , annual cost - fuel and
O&M

Definition
n

n
n

Distributed Generation- Installation and

operation of electric power generation units
connected to the network on the customer
site of the meter [Ackerman,2001]
"Dispersed" "Embedded" Generation
Classification- Non-renewable/ renewable
Based on Prime Mover- engine, turbine, fuel
cell...

Op
tion

Diesel

Capital Co
st Life
(Rs
/kW)

O&M
cost
Rs/kWh
($530/kW)
25000 20 40
% 0.25

Ga
sEng
ine 33000 20 35
% 0.25
Micro 45000 20 28
% 0.25
Turb
ine
FuelCell 14100010 45
% 0.25
Discoun
trate d=0
.1,
3
Na
tural gas pr
ice= s5200/1000
R sm
3
Diesel price=Rs16
/lit
re, dens
ity= 850
kg
/m,
LHV9700
= cal/kkg

($700/kW)
($960/kW)
($3000/kW)

Cost of Generation
9

15 c/kWh
7

Rs/kWh

10 c/kWh

Rs/kWh

0
0

0.1

0.2

0.3

0.4

0.5
Load Factor
Figure 2. Cost of Generation from Diesel Engine-Generator (d=0.1)

0.6

0.7

0.8

0.9

Schematic of a PEM Fuel Cell -Reformer

50000

$960/kW/year

45000

40000

35000

30000
Diesel
Gas Engine

25000

MicroTurbine
Fuel Cell

20000

15000

10000

$110/kW/year

5000

0
0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Load Factor
Figure 1. Comparison of Annualised Life Cycle Costs for Non Renewables (Discount rate =10%)

0.8

0.9

Annualised Life Cycle Costs

$960/kW/year

45000

40000

35000

30000

25000

Diesel
Gas Engine
MicroTurbine

20000

15000

10000

$110/kW/year

5000

0
0

0.1

0.2

0.3

0.4

0.5
Load Factor
Figure 3 Comparison of non-renewable options (High discount rate 30%)

0.6

0.7

0.8

0.9

Renewable Power Generation

Small
Hydro

Solar
Wind

Biomass /
Biogas
Ocean Thermal
Energy

Solar Thermal

Solar
Photovoltaic

Tidal
Energy

Wave
Energy

Installed Capacity of Renewables in

India
1600
1400
1200
1000
800
600
400
200
0

1267

1341
Total Renewable Installed capacity
2978 MW
31/3/2001 MNES

210
15
So
la
rP
V

35

Ga
sif
ie
W
rs
as
te
-E
ne
rg
y

Sm
al
lH
yd
ro
Bi
o
Co
m
bn
Bi
o
Co
ge
n

W
in
d

63

47

Avg wind speed m/s

Daily Wind Variation

9
8
7
6
5
4
3
2
1
0
0

12

16

Time of day (hours)

Daily variation Sanodar (West Coast)

20

24

Ju
ly
Au
gu
Se
s
pt
em t
be
r
O
ct
o
No ber
ve
m
be
De
r
ce
m
be
r

Ju
ne

M
ay

Ap
ril

m
ar
ch

Ja
nu
ar
y
fe
br
ua
ry

Normalized Power Output

Monthly Wind Output

100

80

60

40

20

Month

SITE: SANODAR

Wind -Cost of Generation

0.1

0.2
0.3
0.4
d=0.1 ALCC Rs $130 5960
6048
6136
6223
14c 6.8
Rs/kWh
0 7c 3.45 5c 2.33 4c 1.78
d=0.3 ALCC Rs 15167$320 15255 15342 15430
Rs/kWh
17.31 37c 8.71 18c 5.84 12c 4.40 9c
Capital cost Rs 50,000/kW,O&Mcost Rs 0.1/kWh,Life 20 ye
ars
Load Factor

$1060/kW

Installed Capacity (MW)

India- Wind Installed Capacity

2000
1500
1000
500
0
1988

1993

1998

2003

Annual Generation (MUs)

India- Wind Generation

2500
2000
1500
1000
500
0
1991

1993

1995

1997

1999

2001

2003

Wind -Trends
1999- Wind Energy 24 TWh (13.3%) World
13.6 GW (20.1% Load Factor)
n 1 million Wind pumps , 10000+ small battery
charging wind generators
n World- Growth rates 27-33%
n India 45000 /13000 MW potential estimated
n Wheeling, Third party sale, depreciation
39% (1990-2002), 21% 2001-2 CAGR
n

Solar radiation kW/m2

Daily Solar Radiation

1.2
1
0.8
0.6
0.4
0.2
0
0

10 12 14 16 18 20 22 24

Time in hrs.

Site :Mumbai,
May

Avg Daily Solar

Radiation(kWh/m2/day)

Monthly Solar Radiation

8
7
6
5
4
3
2
1
0
1

6 7 8 9 10 11 12
Month Site: Mumbai

PV- Cost of Generation

$4300

$5300

$6400

Capitalcost/kW 200000
250000
300000
LF=0
.2ALCCRs 23,
930 29,
803 35,
676
Rs/kWh
13.
66 17.
01 20.
36
LF=0.25
AL
CCRs 24
,03929
,91235
,785
Rs/kWh
10
.98 13
.66 16
.34
O&MRs 0.25
/kWh,
Life20 aye
rs, discoun
trate=10
%

$760

29c

36c

23c

43c

29c

35c

Solar PV
n
n
n

n
n

Total Installed Capacity 65 MW

1999-2000 Prodn 9.6 MW cells, 11 MW modules
Grid Connected 2.5 MW (2002) - 31 systems average 80 kW, largest 240 kW peak
Daily insolation 4- 7 kWh/m2 , 300 sunny days
Capital subsidies on grid connected systems - 2/3rd
of initial capital cost
Manufacturers - Tata BP, Shell, BHEL, CEL

Biomass

Schematic of Gasifier Engine

Gas
Air

Diesel

Gas &Air
Power output

Air
Gas
Ash
Gasifier

Cooling & Cleaning

System

Fig.

Schematic Diagram of Gasifier Engin e System

Engin e

Generator

Source: Parikh

Biomass
n

n
n

n
n

Fuelwood, agricultural residues (rice husk,sugarcane

trash, coconut shells..), animal wastes.
40% India's primary energy use.
Estimates - residue 16000-18000 MW (6000
hrs/year).
Dedicated plantations - waste land - 500 million
tonnes - 60000 MW (6000 hrs/year).
Atmospheric gasification (incomplete combustion)
Diesel costly - prefer dedicated engine based on
producer gas

Input Data - Biomass Gasifier

Gasifier Engin
e-gen
erator
Capital Cost(Rs/kW)
20000 33000
Life
10yea
rs 20yea
rs
Efficiency
70% 35%
Biomass NCV=3400 l/
kca
kg,PriceRs 1/kg
Discoun
t rate=10%,O&Mcos
t =Rs0.5/kWh

12

Biomass Gasifier Engine Cost

10

13c/kWh

Gas Engine

Bioengine
Diesel
Gas Engine
Bioengine

8.5 c/kWh

Diesel

4.3c/kWh

0
0

0.1

0.2

0.3

0.4

0.5
Load Factor

0.6

0.7

0.8

0.9

22 ata
330o C

58 T /hr

FEED
WATER

4 .5 T / h r

Feed w ater

27T /hr

2 6 T /h r

BOILER
0 . 5 T /h r

PRDS

B A G A S SE
0 .5 T /h r
M ILLING
PRDS

6 a ta
~

2 .5 M W

Process

2 a ta

F la s h e d
C ondensate

STEAM
T U R B IN E

P rocess

S c h e m a tic of ty p ical 2 5 0 0 tcd S u g a r factory

BOILER
F eed w a ter

75 TPH , 65
ata, 480OC

STEAM
T U R B IN E
9 .5 M W
P ower export

13 M W
BAGASSE

6 a ta
4 .5 T P H
P R O C E SS
2 a ta
2 a ta

Condenser

(A lternate fuel)

1 .0 M W
M ill
d r iv e s

CONDENSER

ESS

BFP
P R O C E SS

P R O P O S E D P L A N T C O N F IG U R A T IO N : O P T IO N 2

2 .5 M W
C a p tiv e
load

Bagasse Cogeneration
Incremental Capital Cost 30000
$680/kW
(Rs/kW)
Life
20years
Boiler Efficiency
70%
Bagasse NCV = 3400
kcal/kg, PriceRs1.50/kg
Discountrate = 10%, O&Mcost = Rs0.5/kWh
2500tcd plant 9.5MWexport, 0.93kgextra/ kWh
Loadfactor 0.4
0.5
0.6
Rs/kWh

1.20

2.6c

1.00

2.1c

0.87

1.9c

Typical Load Curve (Rural India)

70
60
Load (kW)

50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour of the day.
Residential Electricity Demand
Industry demand

Agriculture Demand
Total Load

What is a Hybrid Energy System?

n

Hybrid
n

n. Something heterogeneous in origin or

composition
n. an offspring of different breeds,varieties

Hybrid Energy Systems combine two or

more different energy conversion
devices to provide a common energy
service(s).

Why Hybrid ?
n

Daily and Monthly variation in

Renewable Resource Availability
Daily and Monthly Variation in Demand
Profile
Hybrid of two renewables may help
overcome limitations of both
Retrofitting/ provision of fossil backup
may provide easier acceptability of
renewable technology

Hybrid Options
n

Several options e.g. PV Hybridsn

PV- Wind, PV-Diesel, PV-Diesel-Wind,

PV-Micro-Hydel

Different Devices- Prime Movers

Engines, turbines, fuel cells
Different Storage Options Batteries,
Pumped Hydro, Flywheels

PV
PV
arrays
arrays
15kW
15kW
@
@
1000
1000
2
w/m
w/m2

MPPT
MPPT
Operating
Operating
voltage
voltage
315-378
315-378VV

RETREAT
RETREAT
BUILDING
BUILDING
Connected
Connectedload
load
90kW
90kW

Bi-directional
Bi-directional
inverter
inverter
30kW
30kW
Battery
BatteryBank
Bank
240
240batteries
batteries
2V,
2V,600Ah
600Ah@C10
@C10

DG
DGSet
Set
50
50kW
kW

TERIS HYBRID SYSTEM

Criteria
n

n
n
n

Autonomy A = 1- HLOL/(HTOT)
HLOL no of hours of loss of load
HTOT total no of hours of load
Emissions
Cost
Trade-off between criteria

Indian Experience -Hybrid

n

n
n

Wind-Solar PV 9 systems- 42 kW total

e.g 5 kW Chunnambar Island 3.3
kW Wind, 1.8 kW PV, 800 Ah Battery
PV-Diesel - Kiltan, Minicoy (100kW)
500 kW Wind-Diesel Sagar Island
West Bengal(10-50 kW wind m/cs with
2 -360 KVA generators)

Possible Applications
n
n
n
n

Islands- Existing Diesel grids

Remote locations Hilly terrain
Industries with captive power (DG)
80,000 Non-electrified villages
relatively remote
Estimate 100 households Average
30kW 540 MW of off-grid systems

Hybrid Cost Comparison

43

41

39

Cost (Rs/kWh)

37

35

33

31

29

27

25
0

LOLP (%)
Single Photovoltaic System

Single Wind Energy System

Hybrid Sytem (fpv =0.2)

10

Renewables- Policies
n

n
n
n

Subsidies/Incentives - offered by Govt of

India on Renewables
Target Oriented - Installation not actual
generation
Only country with separate Ministry for
renewables
10% of power generation target by 2010
Preferential tariff for renewables
Centralised vs Decentralised

Renewable Issues
n
n
n

Resource Variability Site Specific

Load Uncertainty
System Selection/Sizing Incomplete
assessment of options, Satisficing
Most Renewables promoted by individual
technology /component suppliers
Systems Analysis/Load Forecasting
Software/modelling support required

Renewable Issues
n

Load management- cost effective method of

matching supply-demand (DSM)
Experience with Control strategies/R&D
needed Pilot systems
Need for indigenous controller & inverter
development
Need to have well documented pilot systems
that provide unbiased data on actual
performance of hybrid systems. Independent
assessment and dissemination of results

Hybrid Issues
n

n
n

Affordability to end-user? How much of costs

to be recovered? Remote areas lower ability
to pay- Need to try different models
Externalities need to be quantified to level
playing field
Govt- Manufacturers R& D institutionspartnerships
Clearly specified criteria
Tracking of Hybrid Programme & mid-course
corrections

End-Note
You can never plan the future by
the past
Edmund Burke

References

Thank You

T.Ackerman, G. Andersson, L.Sodder, Distributed Generation: A definition, Electric Power

Systems Research 57 (2001) 195204.
Distributed Generation, The Power Paradigm for the New Millenium, Edited by A.M.
Borbely and J.F.Kreider, CRC Press, Boca Raton, USA, 2001.
Assessment of Distributed Generation Technology Applications, Prepared for Maine Public
Utilities Commission by Resource Dynamics Corporation, Vienna, VA, USA, February
2001, available on the web at //www.distributed-generation.com.
Fuel Cell Handbook, Fourth Edition, November 1998, US Department of Energy, Office of
Fossil Energy, Federal Energy Technology Centre, Pittsburgh,USA available on the web at
//www.fetc.doe.gov/publications.
Ministry of Non-Conventional Energy Sources, Annual Reports, New Delhi, 1993,
2000,2001,2002.
Wind power development in India: Towards global leadership, Ministry of NonConventional Energy Sources, New Delhi, October 2002.
Tata Energy Data Directory 1999, Tata Energy Research Institute, New Delhi, 2000
PP.Parikh, State of the Art Report on Gasification of Biomass, Report submitted to DNES,
Govt of India, 1984.
Status of Biomass Gasification Technology at ASCENT, India, October 1998,
http://www.bgtechnologies.net/ankur.htm.