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Energy produced from bagasse, a waste product from sugar cultivation, currently contributes as much as wind power to India’s power grid. It could add much more if a better policy framework were in place, says a recent report
Sugar mills in the five major sugarcane growing states of Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu and Uttar Pradesh are contributing 2,000 megawatt (mw) of power to the national electricity grid, enough to power the needs of a business centre the size of Gurgaon, in Haryana. A report in Down to Earth, the fortnightly magazine brought out by the Centre for Science and Environment (CSE), says that if this cogeneration (production of two forms of energy, electricity and heat) by India’s 650-odd sugar mills could be scaled up, it would go a long way in easing the country’s energy crisis. “We need to find alternatives to fossil fuel-based power for energy and climate security. Therefore, it is important to understand what a country like India is already doing to adopt renewable energy sources, and what more can be done,” said Sunita Narain, director CSE, explaining the need for the study. “We researched efforts in the country to move towards modern biomass-based energy using cogeneration technologies -- and were amazed to find that cogeneration just by sugar mills was generating such an immense amount of energy!” According to the Down to Earth report, only 107 of the 650 sugar mills have cogeneration plants. The energy is biomass-based ‘green’ energy from bagasse, a residue of crushed sugarcane, which makes it environment friendly. Cogeneration also makes good business sense. The report gives the example of the Dhampur Sugar Mills in Uttar Pradesh, which has the largest cogeneration capacity in the country. It made Rs 42 crore from its cogeneration unit in 2007-08, compared to Rs 11 crore from its sugar units. It sold about 177 million units of power to the state. The third largest sugar maker in India, Triveni, based in Deoband, Uttar Pradesh, is selling 16-17 mw of power to the state. However, India has no policy framework in place to strengthen this green energy source. Much more is heard about wind energy, which also produces 2,000 mw. The capital costs of biomass energy, though, are much lower -- roughly Rs 4-5 crore per mw, which is half the cost of installing wind energy. In a 2008 study, the International Energy Agency said that the sugar sector had the potential to produce 5,100 mw of power through cogeneration, which is 69% of the total cogeneration capacity. If the resources and technology are improved, cogeneration can produce almost 10,000 mw, or 40% of the country’s 2008 power deficit. India launched its biomass power (bagasse-based cogeneration) policy in 1990. This was revised in 2006 to provide capital subsidy (Rs 15 lakh per mw) and tax rebates (including 80% depreciation in the first year for selected equipment). The 2003 Amendment to the Electricity Act also provided the necessary framework for promoting renewable energy sources -- asking states to fix a minimum limit for energy utilities to buy green energy. Despite this, not much has been done to boost this form of energy production despite the crying need for more power. Tariffs differ from state to state and are based on scarcity not policy. While in some states like Tamil Nadu, the tariff is as high as Rs 7 per unit, others like Uttar Pradesh pay only Rs 3 per unit. Low tariffs have begun to hurt cogeneration, says the study. Inter-state sale of power should also be allowed so that green power-deficit states can purchase from others. Biomass-based energy should be used to feed local grids for local and decentralised distribution and a way should be found to do this. “Local energy supply should be given preferential tariffs so that villages that do not have power get it,” says Narain. Source: http://www.cseindia.org/AboutUs/press_releases/, June 5, 2009 http://www.downtoearth.org.in/, June 5, 2009
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