Biomass energy cost and feasibility of gasifier based biomass power generation system

The present research work has been carried out on biomass based on 10 kW capacity gasifier power generation system installed at College of Agricultural Engineering and Technology, Dr. Panjabrao Deshmukh Agricultural University (Dr. PDKV), Akola Maharashtra, India. The main objectives were to evaluate various costs and benefits involved in the power generation system. The costs of energy per unit were calculated for the first year of operation. The economics of gasifier based power generation system and thereby the feasibility of the system was examined by estimating per unit cost, Net Present Value (NPV), Benefit Cost Ratio (BCR), Internal Rate of Return (IRR) and payback period. The discount cash flow method was used to find out the IRR. In the present analysis, three costs viz., installed capital cost, operation and maintenance cost, and levelised replacement cost were examined for the evaluation of the power generation per unit. Discount rate on investment in case of subsidy (Case I) and in case without subsidy (Case II) for installation cost of system was considered as 12.75%. The BCR comes in Case I for operating duration of 22 h, 20 h, and 16 h are 1.24, 1.18, and 1.13, respectively. Similarly for Case II BCR comes 1.44, 1.38, and 2.39. The IRR comes in Case I for operating duration of 22 h, 20 h, and 16 h are 26%, 22%, and 19%, respectively. Similarly for Case II, IRR comes 52%, 44%, and 39% for operating duration of 22 h, 20 h, and 16 h, respectively. The payback period in the present analysis was worked out. The payback period for biomass based gasifier power generation system was observed to be for Case I from three to four years and for Case II it was one to two years.