Reasons of failures
¢ Sources
of fuel are not authenticated and the fuel is stored by the agents for a price
rise
¢ Procurement
and storage losses from biomass storage are around 5%
¢ Competition
– Increasing competition from other
sectors like brick kilns, cement plants, thermal power plants, oil
mills, and rice mills making biomass unviable for power production alone
¢ Price
of the biomass fluctuates very highly from Rs.1,500 / ton during season to Rs.
3,000 / ton during off season of crops
¢ Rise
of fuel prices, assessment, procurement, storage practices are assessed
directly by visiting the biomass power plants
¢ Skilled
manpower procurement and retention is another problem faced by the biomass
power producers
¢ There
are no skilled workers in the area and as the number of power plants are
increasing the need for skilled manpower is increasing day-by-day leading to
lower retention rates at different biomass power plants
¢ Problems
pertaining to the delayed payments from the DICOMS
¢ Tripping
of the power lines
¢ The
major barriers and constraints that were identified are:
—
Technical
barriers
— Institutional
/ regulatory barriers
— Financial
barriers
— Technical
Barriers
¢ Lack
of quality biomass assessment study
¢ Lack
of standardized methodologies and guidance
¢ Biomass
assessment a low cost service
¢ Inadequate
fuel collection, distribution and supply mechanism
¢ Competition
for biomass and price rise
¢ Availability,
training and retention of skilled
manpower
¢ Lack
of standardized SHR and GCV rates
Institutional
/ Regulatory barriers and constraints
—
Power
Purchase Agreement (PPA)
¢ Lack
of short term PPAs with Biomass Power Plants
— Tariff
related issues
¢ Lack
of standard biomass price assessment mechanism for determination of the biomass
tariffs
— Zoning
of the region
¢ Irregular
zoning practices and self violating policies
— Sizing
of the power plant
¢ Improper
sizing of the power plant leading to competition for the same amount of biomass
available
Financial
barriers and constraints
— Lack
of interest from financing institutions
— Delayed
bill payments by more than six months
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