SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

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256 The Meaning of Sufficiency Economy International Conference Normative O&M expenses for the first year of the Control period (i.e. FY 2009-10) are Rs. 20.25 Lakh per MW. Normative O&M expenses allowed at the commencement of the Control Period (i.e. FY 2009-10) is escalated at the rate of 5.72% per annum. Fuel Mix: The biomass power plant is assumed to be designed in such a way that it uses different types of non-fossil fuels available within the vicinity of biomass power project such as crop residues, agro-industrial residues, forest residues etc. and other biomass fuels. The Biomass Power Generating Companies is simulated to ensure that the fuel management plan ensures adequate availability of fuel to meet the respective project capacity requirements. Biomass fuel price during first year of the Control Period (i.e. FY 2009-10) is presented in the Table VI below. Alternatively, for each subsequent year of the Tariff Period, the normative escalation factor of 5% per annum is taken into account. Table VI: Biomass Fuel Price in different States of India (CERC, 2010) State Andhra Pradesh Haryana Maharashtra Madhya Pradesh Punjab Rajasthan Tamil Nadu Uttar Pradesh Other States Biomass Price (Rs/MT) 1301 2168 1801 1299 2092 1822 1823 1518 1797 For Solar Photovoltaic (PV) power, the simulations are applicable for grid connected PV systems that directly convert solar energy into electricity and are based on the technologies such as crystalline silicon or thin film etc. as approved by Ministry of New and Renewable Energy, Govt. of India. The normative capital cost for setting up Solar Photovoltaic Power Project is Rs. 1700Lakh/MW for FY 2009-10. The Capacity utilisation factor for Solar PV project is nineteen to twenty percent. The O&M Expenses are Rs.9 Lakhs/MW for the 1st year of operation. Normative O&M expenses allowed at the commencement of the Control Period to be escalated at the rate of 5.72% per annum.
The Meaning of Sufficiency Economy International Conference 257 A case study by Razak et al (2009) showed that reducing the excess electricity from 55% to 3% again reduces the Levelized Cost of Energy by about 50%. This implies that renewable energy options to be deployed must be meeting the local requirements according to their hourly demand load curves. Another alternative is to limit the load towards the dominant power supplier in the renewable energy hybrid system. This is to ensure that the initial capital and annualized cost to be at its minimum. Literature reports that in general, at places with higher wind speeds, it is more suited that wind to solar ratio be greater than one (around 1.43) (Habib et al 1999). In some cases, it has gone as high as 4.5. Moreover, this ratio, generally greater than one, is very site specific and varies from site to site. Hence, on a general scale a ratio of 1.85 was arbitrarily chosen to take round figure values for the ease of simulation of payback analysis. The base case assumptions and calculations for simulation of payback analysis were as follows:- 1. Windy regions include Tamil Nadu, Rajasthan, Andhra Pradesh, Karnataka and Gujarat according to the Wind Map of India (Figure XX) (DOT 2008). Hence, the analysis including biomass fuel price and electricity tariff for wind and biomass takes into account the prevailing prices in these regions only. 2. Total requirement is calculated in kWh/day of a community, and that is assumed to be constant. To fulfill these energy requirements, individual models are developed with varying capacities according to their CUF/PLF and these are analyzed for their payback. 3. Electricity tariffs for solar are constant at 18.44 Rs/kWh in all states for the first year of operation. 4. Plant is assumed to have been built by starting of FY 2009-2010. Hence, its capital cost is considered to be same as normative cost for the FY 2009- 2010. This is taken as Fixed cost component and is reflected in FY 0 in the simulation of various models to highlight its contribution. 5. The minimum lifetime out of solar, wind and biomass is that of biomass – 20 years (CERC 2010). 6. The tariff period is valid for 13 years. Hence, payback analysis simulation has been carried out till 13 years. 7. The average CUF or PLF of the plant varies with time to time. In general, we assume the efficiency increases slightly initially (as stabilization issues get resolved) and then decrease (as equipments wear out). 8. Biodiesel generator and battery back-up costs and revenues aren’t included as they are considered to be same for the same capacity requirements. As their costs and revenues would remain same in all the cases
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SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

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