In India alone, one can observe several cases where bio-energy projects of the scale greater than 5 MW are on sale already, even with their power purchase agreements still in place. Such events necessitate the need to have a mechanism in place which would further seek the promotion of such technologies.
Biomass Exchange - A Plug in the Missing Link
The usual solution to encounter such a problem is to have long term contracts with the resource providers to not only have an assured supply but also guard the project against unrealistic escalations in the fuel costs. Although, this solution has been found to be viable, it becomes difficult to sustain such contracts for longer durations since these resources are also susceptible to numerous externalities which could be in the form of any natural disaster, infection from pests or any other socio-political or geographical disturbances, which eventually lead to an increased burden on the producers.
- Assuring a readily available market for the resource providers or the producers
- Assuring the project developers of a reliable chain and consistent feedstock availability
- Awareness to the project developer of the resources in closest proximity to the plant site
- Assurance to the project developer of the resource quality
- Timely pick-up and drop of resource
- Proper fuel preparation as per technology requirements
- Removal of intermediaries involved in the process – to increase value for both, the producers as well as the buyers
- No need for long term contracts (Not an obligation)
- Competitive fuel prices
- Assistance to producers in crop management
- Support to the ever increasing power needs of the country
- Promotion of Bio-Energy Technologies
- Development of Rural Infrastructure
- Raised opportunities for Micro-Entrepreneurship
- Numerous direct and indirect job opportunities
- Efficient utilization of waste biomass resources
- Potential of averting Millions of tonnes of Green House Gas emissions
The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag
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