Community-Based Biomass Power Beacon Project in Khonkaen Province www.renewables-made-in-germany.com Renewable Energy Asia 2013, June 5, 2013
Content Project Development Programme SEA background GIZ Business model on community based biomass power pilot project GIZ Business Model Pilot Project details Feedstock supply and Technology Financial Model Key Success Factors
I. Background: Project Development Programme SEA
PDP SEA Background supporting the implementation of business cooperation and technology cooperation between German and local companies universities (and other institutions for higher education) German and local business associations promoting technology and know-how transfer capacity building Sustained Business & Technology Cooperation
II. GIZ Business model on community based biomass power beacon project
Considerations on Community Biomass Power Plant Community participation Considering environmental, health and other fears of local community Farmer benefits Biomass power plant can be viewed as a rural development opportunity several business models possible e.g. cooperatives, small business structure, landowner pools, partnerships and contract farming Utilization of local agricultural residues Eliminate local waste burning and providing farmers with extra income. Land use Fast growing woods are encouraged in the community in order to feed to the power plant, while considering the Food or Fuel debate and not diverting fertile farmland to forestry
GIZ Business Model
Project Site: Ban Fhang District, Khonkaen Province Village: Tumbol Banlau, Aumpur Ban Fhang, Khonkaen Province Inhabitants: 108 Households Agriculture: Rice, Sticky Rice (692 Rai) Income/Capital: 3,062 THB/Rai/Household or avg. 19,618 THB/household/year Residual waste: Rice Husk, Eucalyptus Tree Total land available: 1092 Rai Potential Plantation: Giant King (Napier) Grass (409 Rai) Napier Grass yield: 40 dry ton / rai Total feedstock: 16,486 dry tons/year (cal.)
Project Site
Power Plant Location Location: Mooban Bankor, Tumbol Banlau, Aumpur Banfhang, Khonkaen Area : 4 Rai
Stakeholder Consultation
Feedstock Supply Information Feedstock type Waste residual: Rice husk, Eucalyptus tree Energy plantation: Giant King (Napier) Grass Waste residual: 110 Ton/Yr Energy plantation: 16,376 Ton/Yr (from unused land) Total Feedstock: 16,486 Ton/Yr (defining the capacity of the power plant) feedstock price: 250THB/Ton (fresh) Transportation: 50 THB/Ton Feedstock preparation: 200 THB/Ton (shred, dry, pallet) Average feedstock price: 500THB/Ton
Chemical Feedstock Analysis
Electricity Production Average electricity selling price to PEA: Peak 3.8548 THB/kWh Off Peak 2.0424 THB/kWh Current FT rate: 0.47 THB/kWh (up to year 2012) Adder: 0.50 THB/kWh for 7 years Av. electricity price: 3.870 THB/kWh Installed capacity: 1 MW (power) Supply capacity: 850 kw (85% load factor) Operation days: 300 days at 24 hours per day Project lifetime: 25 years BOI Zone: Tax Holiday 8 years
Gasification Technology with capacity below 1 MW available Source: Schnell Motoren
Draft Financial Model Model Calculation Project Investment Cost Investment from Thai Investor (70%) Investment from German Investor (20-30%) [Share to Community (up to 10%)] Equity Shareholding (German Investor: Thai Investor: Community) 80 MTHB 56 MTHB 16-24 MTHB up to 8 MTHB 70:20:10 Project IRR 20% Project Payback Year 4
Sensitivity Analysis between Feedstock and Price List IRR on project Techology Cost (MTHB) 60 70 80 90 100 900 22.00% 17.00% 14.00% 11.00% 8.00% Feed stock supply (THB/ton) 800 24.00% 19.00% 16.00% 12.00% 10.00% 700 26.00% 21.00% 17.00% 14.00% 11.00% 600 27.00% 22.00% 18.00% 15.00% 12.00% 500 29.00% 24.00% 20.00% 17.00% 14.00%
III. Key Success Factors
Key Success Factor Land owner acceptance and community acceptance Biomass Feedstock in the area of quality and quantity Technology transfer with high quality, performance and monitoring system win-win Business model Clear definition of relevant stakeholders Government support
Thank you... Thomas Chrometzka Project Development Programme South-East Asia thomas.chrometzka@giz.de www.renewables-made-in-germany.com