guidebook for developers update 31oct2020

COMMUNITY BASED SMALL SCALE BIOMASS POWER PLANTS IN THAILAND:GUIDEBOOK FOR DEVELOPERS

Disclaimer :The views expressed herein are those of the author(s) and do not necessarily reflect the views of the United Nations. This document has been produced without formal United Nations editing and do not imply the expression of any opinions, designations and material presentations do not imply the expres-sion of any opinion whatsoever on the part of UNIDO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area

in the development process. Mention of firm names or commercial products do not constitute an endorsement by UNIDO. Although great care has been taken to maintain the accuracy of information herein, UNIDO does not assume any responsibility for consequences which may arise from the use of the material.

Authors:Dr. Chatchawan CHAICHANAUNIDO-STRI, CMU Center for Biomass Gasification Learning CenterThe Science and Technology Research Institute, Chiang Mai University (STRI, CMU)239 Huaykaew Road, Muang District, Chiang Mai 50200, Phone: +66 (0) 53-942-478 ; Fax: +66 (0) 53-942-478 Coordination:This study has been funded by GEF under the Project “Promoting Small-Scale Biomass Power Plants in Rural Thailand for Sustaina-ble Renewable Energy Management and Community Involvement” implemented by UNIDO, in collaboration with The Policy and Strategy Management Office of the Ministry of Energy, Thailand and The Science and Technology Research Institute, Chiang Mai University (STRI, CMU), Thailand The “GUIDEBOOK FOR DEVELOPERS” was coordinated by: Jossy THOMAS, Project Manager, UNIDOSupalerk KANASOOK, National Project Coordinator, UNIDO

01 04 08

13 16 18

Introduction 1.Biomass gasification system

2.Estimation of biomass potential

3.Financial analysis

4.Public participation

5.Getting permits

P a g e P a g e P a g e

P a g e P a g e P a g e

CONTENT

COMMUNITY BASED SMALL SCALE BIOMASS POWER PLANTS IN THAILAND: GUIDEBOOK FOR DEVELOPERS 01

IntroductionBiomass, which is derived from agricultural sources including rice husks, wood chips, sugarcane leaves and corn stalks is an abundant resource in tropical countries. Biomass can also be converted to liquid form and then can be used as fuel in the transport sector, e.g. ethanol or to produce electricity and heat. On a domestic level, most users use biomass for cooking and simple heating in food preservation, while many industries – such as agricultural product drying and food processing – use biomass in furnaces and boilers. Biomass is an extremely popular option for electricity production in Thailand, where the majority of biomass power plants produce electricity from steam.

Rice husks Wood chips Empty palm bunches

Sugarcane leaves Corn stalks Mixed material (Pellets)

Figure 1 Typical types of biomass in Thailand

COMMUNITY BASED SMALL SCALE BIOMASS POWER PLANTS IN THAILAND: GUIDEBOOK FOR DEVELOPERS02

According to the Alternative Energy Development Plan (AEDP), Thailand aims to produce 22,100 ktoe of heat and install 5,570 MW of total biomass power-plant capacity by the year 2036 (see Figure 2). Currently (May 2020), the total installed capacity of biomass power plants is 3,185.8 MW or 57% of the target, consisting of 210 biomass power plants, with an average installed capacity of 15.2 MW per power plant.

According to the definition given by the Energy Regulatory Commission of Thailand (ERC), there are three groups of private power plants: Independent Power Producer (IPP), Small Power Producer (SPP) and Very Small Power Producer (VSPP). IPP refers to large, private power producers with generation capacity of more than 90 MW. All of them use fossil fuel as their primary energy source for producing electricity. SPP refers to smaller private power producers with generation capacity in the range of 10 MW to 90 MW. This group of power plants uses both renewable energy and fossil fuel as their primary energy sources. VSPP refers to the smallest size private power producers in Thailand, with generation capacity registered not more than 10 MW. Currently, there are 978 VSPP in Thailand (5,233.3 MW installed total capacity) of which 210 are biomass power plants that are in operation and selling electricity to the grid (37 SPP and 173 VSPP). The total installed capacity of the biomass power plants is 3,185.8 MW (SPP = 1,123.4 MW, VSPP = 2,062.4 MW).

Figure 2 Thailand’s Alternative Energy Development Plan 2015-2036

Strategy: Alternative Energy Development Plan 2015-2036

Foundation: Commitment to the development of a low-carbon society

Facilitator:Private-led investment

Goal: Target 30% renewables in Total Energy Consumption by 2036

Bio-FuelEthanol

11.3 ML/Day

4,800 t/Day 10 ktoe

14 ML/Day 0.53 ML/DayAlt.Fuels*CBG

Biodiesel Pyrolysis Oil

Solar WindLarge Hydro

HydroSmall Hydro6,000 MW

3,282.40 MW9,002 MW Power / 1,200 ktoe Heat

3,002 MW1,200 ktoe

Bio-EnergyBiomass Biogas MSW+Industrial Waste

5,570 MW

6,720 MW Power / 23,878 ktoe Heat22,100 ktoe 1,283 ktoe 495 ktoe

1,280 MW 550 MW

Facilitator:Government funded RD&D

New-EnergyGeothermal, Used Tire oil,etc.

10 ktoe2,906.40 MW 376 MW

Note: List of abbreviations in this figureCBG – Compressed Bio-methane Gas

ktoe = kilo tonne of oil equivalent (a unit of energy defined as the amount of energy released by burning one tonne of crude oil.

It is approximately 42 gigajoules or 11.630 megawatt-hours)

ML = Million Liters

RD&D = Research, Development & Demonstration

*Note: Alternative fuels = Bio-oil, Hydrogen

Thailand’s Alternative Energy Development Plant AEDP 2015-2036

1 Kilo tonne of oil equivalent or ktoe; It is approximately 42 gigajoules or 11.630 megawatt-hours.


There are two types of electricity-selling contracts: Firmed and Non-Firmed. Only 17 SPP biomass power plants sell electricity using the Firmed contract, meaning more than 80% of produced electricity at the contracted capacity in a year must be sold to the grid. Failure to do so could mean financial penalties for the power plant operator. The majority of biomass power plants (92%) sell electric-ity using the Non-Firmed contract, meaning they have no obligation on the amount of electricity sold to the grid. Although the electricity-selling rate of the firmed contract is approximately 20-50% higher than the non-firmed contract, most of the biomass power plants opt for the non-firmed contract due to the uncertainty of the availability of biomass throughout the year.

To reach the 43% AEDP target, small size biomass power plants should be considered as an alternative. Smaller size, in this context, means power plants with generating capacity of lower than 1 MW. The power plant at this size requires approximately 1.5 tonnes2 of biomass per hour. This amount of biomass can be made available, generally, from several adjacent communities, which reduces the transportation costs. The biomass in the communities could be derived from agricultural waste, providing an opportuni-ty for an additional income stream for community members.

For a 1 MW or smaller biomass power plant, an efficient technology for electricity production is gasification technology, which is particularly well suited to small power plants ranging from 10 kW to 100 kW3. Gasification technology offers advantages over thermal power-plant technology, including less equipment, less start-up and shut-down time, less water consumption and no high-pressure steam. The result is simpler operation and maintenance, reducing the amount of technical staff required, making it particularly appropriate for community-scale operation.

Biomass gasification power plants are not new to Thailand. Certain procedures for developing the power plants have already been executed by private companies. This document sets out a guideline for communities looking to develop their own biomass gasifica-tion power plant, by adapting the procedures for developing private biomass power plants. This publication is divided in 5 sections that are highlighted, as follows:

2 Tonne (Metric ton) is equal to 1,000 kilograms3 https://energypedia.info/wiki/Biomass_Gasification_(Small-scale)

1 Biomass

gasification system

3 Financialanalysis

2Estimationof biomass

potential

4Public

participation

5Getting permits.


1.1 Gasification technology

Gasification technology is used for converting solid fuel into gaseous fuel, or fuel gas (see Figure 3). In this instance, the solid fuelis biomass, and it undergoes a high-temperature cracking process with limited oxygen inside a reactor. The gaseous fuel primarily contains Carbon Monoxide (CO), Methane (CH4), and Carbon Dioxide (CO2), with CO and CH4 being the major flammable gases used as energy. In most cases, the fuel gas must be cleaned before use because it contains impurities, such as dust. Tar and ash are additional outputs of the gasification process that must be properly handled.

4 https://www.mayoclinic.org/diseases-conditions/carbon-monoxide/symptoms-causes/syc-20370642

Solid fuel Reactor

Air

Cleaning Fuel gas

Tar

Ash

Special care must be taken when using gasification technology, as CO, which is one the produced gases, can cause dull headaches, weakness, dizziness, nausea or vomiting, shortness of breath, confusion, blurred vision and loss of consciousness if inhaled4. High CO concentrations can also be lethal. There has been one major accident in Thailand relating to CO poisoning at a biomass gasification power plant.

Figure 3 Outline of the gasification process

1. Biomass gasification system


1.2 Biomass gasification power plants

Biomass gathered from sources such as agricultural waste comes in different shapes, sizes and quality, and most sources are usually high in moisture content. Biomass must be stored at the power plant storage facility for two to four weeks, in order to reduce this moisture content. Then, before usage, the biomass from different sources must be grinded and mixed together, after which a sample must be taken and sent to a laboratory for quality checking. Further drying may be required in order to adjust the biomass moisture to the desired level. The dried biomass then undergoes an energy conversion process inside a gasification reactor where gasification, gas clean-up, and gas reform occur. This process results in a cleaned gas, which is supplied to a gas engine (connect-ed to a generator) for electricity production. The electricity produced generally passes through a switch gear before connected to the grid. The typical processes of a biomass gasification power plant can be seen in Figure 4.

BiomassReceiving

UnloadingStorageGrindingMixing

ScreeningDelivery to

Plant

DryingLoad inHopper

Delivery toGasifier

GasifyCleanupReform

Syngas

Biomass

Electricity

EngineElectric

GeneratorSwitch gear

Electricitypasses to

national grid

Waste HeatSteam/hot Water

Lab(Biomass analysis)

BiomassProcessing

EnergyConversion

EnergyProduction

EnergyUse

Figure 4 Typical processes of a 1 MW biomass gasification power plant


1.3 Biomass gasification unit

The United Nations Industrial Development Organization (UNIDO) acquired two 125 kW capacity biomass gasification power plants from the Energy and Resources Institute (TERI), India Habitat Centre (IHC), which are to be installed at two locations in Thailand during the course of 2020. These units comprise 10 major components, as listed in (Table 1).

No.

1

2

3

4

5

6

7

8

9

10

Name of the component

Main gasifier unit

Fuel feeding system

Ash removal system

Gas cooling systems

Dry gas cleaning filters

Mist separator

Gas-air intake manifold

Blowers

Control panels

Producer gas engine coupled with alternator

Function

Converts biomass into gaseous fuel

Used to feed the biomass mechanically

Periodically removes ash from the gasifier

Heat exchanger-based gas cooling is done to ensure

cooled gas to the engine

Dry gas cleaning is done to ensure clean gas

supplied to the engine

Removes condensation and moisture from the gas

for smooth operation of the engine

Acts as gas carburetor to supply a proper air and

fuel mixture

To create draft/suction and to draw the gas from

the gasifier at various stages

Used to control several equipment installed in the

gasifier

The engine is run on producer gas to produce power

through an alternator coupled with the engine shaft

Table 1 The 10 major components of a biomass gasification power plant


Figure 5 Process flow diagram of biomass gasification power plant.

The above-listed components can be installed as shown in the process flow diagram (Figure 5), in which it is assumed that the biomass size and quality are satisfied. The biomass is fed to the biomass gasifier through the biomass feeding system. The hot producer gas is passed though the hot-air generator and gas cooler, in which heat from the hot producer gas is transferred to cold air, resulting in hot air. The hot air is then passed to the biomass gasifier as one of the inputs. After the producer gas is cooled down, it is cleaned via the hot gas filtration (fabric filter). The producer gas temperature is reduced further in the gas cooling system. The producer gas is cleaned again using the mist separators, which removes moisture from the gas. Finally, the producer gas goes through the gas intake manifold and the gas engine to produce electricity. An overview of a similar 125 kW biomass power plant, which was installed in India, is shown in Figure 6.

Figure 6 Image of a 125 kW biomass gasification power plant along with producer gas engine.

Biomass feedingsystem

Hot gas

Hot air

Blower IEvaporative

coolers

Blower II

Biomass gasifierHot air generatorand gass cooler

Hot gas filtration(fabric filter)

Gas cooling system(Heat exchanger)

Mist separatorsand Safety filter

Gas intakemanifold

Producer gas enginewith alternator

3 phase power:415 V; 250 kWe

(2x125 kWe)

Control panel forgasifier system

Control panel forGanset

Ash removalsystem


6 Annually updated data is available via https://data.energy.go.th.5 https://energypedia.info/wiki/Biomass_Gasification_(Small-scale)

2. Estimation of biomass potential

Biomass gasification power plants need to have a continuous supply of biomass throughout the year. For example, a 1 MW biomass power plant requires approximately 1.5 tonnes of biomass per hour. In terms of energy conversion, appropriate gasifier systems with internal combustion engines can produce 1 kWh of electricity from 1.1-1.5 kg wood, 0.7-1.3 kg charcoal, or 1.8-3.6 kg rice husks5. Biomass used for the gasification must be of uniform size (approximately 0.5-2.0 cm), with a moisture content in the range of 10-20%. In order to supply the required amount and quality of biomass, accurate biomass potential estimation must be carried out.

The biomass potential of specific areas, which has been prepared by the Ministry of Energy annually, can be used to estimate the available biomass in a specific area in Thailand6 (the website is currently only available in Thai). A province must be selected in order to obtain potential renewable energy data. Figure 7 shows an image of the website that is used to estimate renewable energy potential in the Phrae province. Potential for biomass is shown in the pie-chart with green color (155.72 ktoe per year).

In order to get more precise data on the available biomass, surveys and detailed estimations must be carried out. For each type of biomass, the Ministry of Energy provided general methodology for estimating content by using the following information:

a. Crop yield per area (kg of crop yield/area) b. Ratio of biomass residue over crop yield (kg of biomass/kg of crop yield) c. Biomass unused factor d. Low heating value of biomass (MJ/kg of biomass)

Historic data of crop yield for each area can be found on the Office of Agricultural Economics website

https://www.oae.go.thFactors given in Table 2 can be used as a guideline in quantifying the energy from available biomass.

Figure 7 Image of website for estimation renewable energy potential


7 http://biomass.dede.go.th/biomass_web/index.html

Biomass residue type

Rice husk

Rice straw

Bagasse

Sugar cane leaves

Wood chip

Saw dust

Cassava rhizome

Corn cop

Ratio of biomass residueover Crop yield

0.23

0.45

0.29

0.30

0.26

0.03

0.90

0.27

Unused factor of biomass

0.49

0.68

0.21

0.99

1.00

1.00

0.41

0.67

Low heating value (MJ/kg)

14.40

10.24

7.53

17.39

14.98

10.88

18.42

18.04

Crop type

Rice

Sugar cane

Para wood

Cassava

Corn

The heating value of biomass depends on the moisture content. Table 3 shows the heating values of biomass available in Thailand at pre-treated state. Normally, biomass in a pre-treated state has high moisture content, hence the heating value is low. For exam-ple, the heating value of corn in Table 2 is 18.04 MJ/kg (at 5% moisture content), while heating value of the corn in Table 3 is 9.62 MJ/kg (at 40% moisture content).

The Department of Alternative Energy Development and Efficiency (DEDE) in the Ministry of Energy of Thailand also provides additional information for quantifying thermal energy from biomass on their official website7.

Biomass

Rice straw

Rice husk

Sugarcane leaf

Sugarcane

Corn straw and leaf

Corncob

Cassava rhizome

Cassava starch

Palm trunk

Palm leaf

Empty palm fruit bunch

Palm husk and pulp

Palm nutshell

Green bean and soybean residue

Para wood and saw dust

Coconut husk and pulp

Coconut nutshell

Cashew nutshell

Moisture content (%)

10

12

9.2

50.73

42

40

40

59.4

48.40

78

58.60

38.50

12

10.93

55

12

12

6.6

Heating value (MJ/kg)

12.33

13.52

15.48

7.37

9.83

9.62

5.49

1.47

7.54

1.76

7.24

11.40

16.90

16.23

6.57

15.4

17.93

5.49

Table 2 Factors for estimating biomass energy potential.

Table 3 Biomass properties.


Biomass available in Thailand comes in different shapes, sizes and quality. Pre-processing, such as cutting, chopping and drying, is often needed to ensure uniform size and quality. Additional equipment required includes woodchippers, shredders, dryers and dust filters. These requirements cause increased capital costs for the power plant, and it is common to ask for specification and price comparisons from several suppliers.

The most uniform shape and quality of biomass in Thailand is rice husk. However, the high demand for rice husk from existing power plants has resulted in an increase in price from 300 to 1,300 THB per tonne. At this price, it is almost not financially viable to use rice husk as the main fuel source.

It is therefore important to consider all possible resources in the respective area, in order to increase raw-material supply security. Biomass from agricultural residue is also weather-dependent, which means the availability of biomass may be seasonal, and sever-al biomass resources must be carefully considered so that they can be used as alternatives at different times of the year. Climate change risk is an important factor to be considered, since changes in weather patterns and extreme weather events can have a significant impact on biomass availability and quality.

Figure 8 shows the estimated supply of biomass from three resources in Phrae province. Bamboo, corn and cassava were all considered, with the major source being bamboo, as it can be available every month. However, during the rainy season (May to October), it must be noted that the supply drops. Corn and cassava are only available in certain months.

Jan

Bamboo node Corncob Cassava rhizome

Biomass fuel supply in Wiang Ta, Phare Province1000

800

600

400

200

0

Fuel

quan

tity (

Tonn

es)

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

From the above information, a biomass supply plan can be constructed. In this case, if monthly consumption is less than 200 tonnes, there is no need to construct a large storage facility. However, a biomass chopper is needed in order to process the bamboo node into small and uniform shape before it is used in the gasification power plant.

Biomass supply routes must also be considered, so a ground survey is needed to ensure stable and secure supply routes, showing the distance from each supply location to the power plant. Geomapping softwares such as ArcGIS (Figure 9) and Google Earth (Figure 10) may be used to investigate this information.

Figure 8 Biomass supply in Wiang Ta, Phrae province per month.


ArcGIS accepts many forms of data collected by users such as numeric and shape file. It is one of the most powerful softwares for spatial analysis. However, commer-cial license can be expensive. On the other hand, Google Earth is the preferred software for this, as it can be used to calculate the distances (and time to travel) between locations using the cost-function equation. It also has a user-friendly interface and intuitive operation, and can be used to explore the locations, allowing researchers to consider the surrounding area. Most importantly, Google Maps is free of charge.

Figure 9 Image of ArcGIS geomapping software used to investigate biomass supply routes

Figure 10 Image of Google Earth used to investigate biomass supply routes


Figure 11 Biomass supply available from different sources

After a detailed survey has been conducted, biomass supply available from each source could be identified, as can be seen from Figure 11 below. In this example, there are 20 point-sources of biomass, identified as factories. The factories can supply a certain amount of waste biomass to a targeted power plant. The biomass supply from each factory is different depending on the month. Thus, in each month, the total supply of biomass is different.

This information is crucial for biomass transportation routing. Transportation of biomass from these point sources to a targeted power plant requires trucks. Each truck has a limited loading capacity. It is essential to plan for each truck to collect biomass from specific factories to obtain the shortest route, biomass from each source is depleted, and the assigned truck is full. This would result in minimizing the transportation cost of biomass.

600

500

400

300

200

100

0January February March April May June July August September October November December

Factory 1 Factory 2 Factory 3 Factory 4 Factory 5 Factory 6 Factory 7 Factory 8 Factory 9 Factory 10 Factory 11

Factory 12 Factory 13 Factory 14 Factory 15 Factory 16 Factory 17 Factory 18 Factory 19 Factory 20 Factory 21


3. Financial analysisFinancial assessment of proposed biomass gasification power plants will provide more information about the project, such as capital costs, annual costs and benefits, profit or loss, cash flow and more. These indicators can be used for decision making and adjusting the project arrangement so that the project can serve community purposes.

The financial analysis reveals how a project will behave under certain predefined conditions. It also allows us to simulate different key project inputs so that various outputs can be observed. There are several parameters that must be known before conducting financial analysis. Then, assumptions must be made using technical, historical or best available data.

Investing in a biomass gasification power plant requires capital budget. This includes land procurement, housing construction, equipment purchase and installation, consultant fees and costs related to obtaining permits. The capital budget is also needed for initial operating costs, such as procurement of biomass, storage and pre-conditioning of biomass and human resources.

For biomass gasification systems, the cost of equipment and installation (the gasifier furnace and cleaning system, and the electrici-ty generator) in Thailand is approximately 40,000 THB per kW (see Table 4). Land prices may be different depending on location. Two housing facilities are needed for the power plant: one for the gasifier furnace and associated systems and one for storage.

Approximately 1.5 tonnes per hour of biomass is needed for 1 MW power plant. It is recommended that stock of biomass should last about 30 days of operation if there is no supply from other sources. Therefore, approximately 1,000 tonnes of biomass must be stored inside the housing. This would require at least 1,100 square metres of floor area. In general, construction cost for storage housing is approximately 10,000 THB per square metre.

Logistic equipment such as trucks, tracked loaders and industrial-size scales are also needed to deal with large amounts of biomass. In summary, the investment costs of a 1 MW biomass gasification power plant can be estimated using Table 4 below.

Item

Land

Gasifier system

Housing and biomass drying equipment

Biomass handling tools

Contingency

Consultant fees

Total estimated investment cost

Unit cost(THB/Unit)

5,000.00

40,000.00

10,000.00

Unit

Sq.Wa*

kW

m2

THB

4,000,000

40,000,000

11,000,000

3,000,000

5,800,000

5,800,000

69,600,000

USD**

128,000

1,280,000

352,000

96,000

185,600

185,600

2,227,200

800

500

1100

10%

10%

Note: *area unit 1 Sq.Wa = 4 Sq.m. **1 THB = 0.032 USD

Table 5 below shows a simple financial analysis of a 1 MW biomass gasification power plant. It is assumed that the power plant is operated 24 hours per day and 300 days per year. The operation costs for biomass gasification power plant systems include biomass (fuel costs), labor and waste-disposal costs (ash). The cost of Biomass is assumed at 0.8 THB per kilogram. At least six people must work at the power plant to cover 3 shifts (or 8 hours per shift) per day. Each shift, one engineer and two labors are needed for fuel loading, power plant operation monitoring, and ash handling. Overtime payment is considered for working during the night and weekend. In total, it is estimated at 18,000 THB per person per month.

Ash disposal fee is estimated at 20,000 THB per month. Handling of fresh biomass including weighting, drying, and storage is estimated at 10% of the fuel cost. Annual maintenance cost is estimated at 580,000 THB per year. Internal energy consumption of the power plant is estimated at 15% of the installed capacity. Interest rate is not applied in this estimation. Time is allowed for almost two months per year for maintenance and major overhauls. Every three years, a major overhaul is required. During this period, the power plant stops operations and no electricity is produced. Electricity selling rate is at 3.50 THB per kWh. Economic lifetime of commercial system is 15 years.

From the assumptions mentioned, the projected simple payback period is nine years and the simple Levelized Cost of Electricity (LCOE) is 3.00 THB/kWh.

Table 4 Estimation of the investment costs for a 1 MW biomass gasification power.


CO

MM

UN

ITY BASED SMALL SC

ALE BIOM

ASS POW

ER PLANTS IN

THAILAN

D: GU

IDEBOO

K FOR DEVELO

PERS15

Year

first costs

Operation costs

Fuel costs

Labour costs

Waste disposal

Other costs such as weighting

and loading of biomass

Maintenance

Total

Total first cost 63,800,000 THB

Total operting cost 208,712,000 THB

Total electricity production 91,800,000 kWh

LCOE 2.94 THB/kWh

currency: THB

Income

Electricity

Total income

Annual profit

Cash flow

Project IRR

21,420,000

21,420,000

7,899,200

- 55,900,800

21,420,000

21,420,000

7,899,200

- 48,001,600

21,420,000

21,420,000

7,319,200

- 40,682,400

0

63,800,000

- 63,800,000

- 4%

1

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

2

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

3

10,368,000

1,296,000

240,000

1,036,800

11,600,000

14,100,800

21,420,000

21,420,000

7,899,200

- 32,783,200

4

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,899,200

- 24,884,000

5

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,319,200

- 17,564,800

6

10,368,000

1,296,000

240,000

1,036,800

11,600,000

14,100,800

21,420,000

21,420,000

7,899,200

- 9,665,600

21,420,000

21,420,000

7,899,200

- 1,766,400

7

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

8

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,319,200

5,552,800

9

10,368,000

1,296,000

240,000

1,036,800

11,600,000

14,100,800

21,420,000

21,420,000

7,899,200

13,452,000

10

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,899,200

21,351,200

11

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,319,200

28,670,400

12

10,368,000

1,296,000

240,000

1,036,800

11,600,000

14,100,800

21,420,000

21,420,000

7,899,200

36,569,600

13

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,899,200

44,468,800

14

10,368,000

1,296,000

240,000

1,036,800

580,000

13,520,800

21,420,000

21,420,000

7,319,200

51,788,000

15

10,368,000

1,296,000

240,000

1,036,800

11,600,000

14,100,800

Installedcapacity

kWe

1,000

Requiredthermal

energy kWth

5,000

Biomasscunsumption

kg/hr

1,800

Cost ofbiomassTHB/kg

0.8

Electricityselling rateTHB/kWh

3.50

Operationhours

day/year

300

Operationalhour

hr/day

24

First costsGasifier and generator 40,000,000Housing for gasifier and fuel stock and fuel handling tools 14,000,000Land 4,000,000Consultant fees (10%) 5,800,000Total 63,800,000

System own used 150 kWeBiomass heating value 10 MJ/kg

Simple financial analysis of small biomass gasification power plant (1 MW)

Table 5 Simple financial analysis of small biomass gasification power plant (1 MW).


4.1 Planning for public participationThe target group for conducting public participation must be correctly identified using a stakeholder analysis. In general, there are three main groups of people in a community: leaders, supporters and detractors. At first, it may be challenging to identify the groups, however, after several meetings, this will become clear. In Thailand, community leaders can be official or unofficial influenc-ers in the community and can include the village head and monks or spiritual leaders. It is important to meet with leaders throughout the process and ensure all important information can be accessed by these people upon request.

In some cases, these people may be on opposing sides. It is important for project developers to treat all supporters and detractors equally. After all stakeholders have been identified, meeting schedules should be set. It is customary to meet the authorities or official leaders first, followed by meetings with non-government groups.

Objectives or goals for each meeting should be planned, and more than one meeting could be necessary to achieve all the objec-tives, as each group has different levels of involvement and knowledge needs. The authorities may have been exposed to power-plant projects before, so they may need to know the project information, such as technology and business model, in greater detail than other groups.

In order to facilitate understanding of the community members who may be not familiar with the technology or technical aspects of the biomass gasification power plant, presentation media with illustrations and uncomplicated diagrams are recommended, and technical terms should be avoided. In terms of conversational tone, it is also recommended to use localised discourse when possible.

4. Public participation One of the most important factors of developing a biomass gasification power plant in a community setting is getting public acceptance, which can be achieved through a public-participation process. In Thailand, construction of power plants is a highly sensitive issue as they are seen as major generators of air, water and noise pollution. Increased traffic from trucks transporting biomass in communities could also cause increased traffic incidents. There are a number of models for public-participation processes, however, transparency should be a key consideration. Not all public participation is the same, Therefore, there are four major steps of public participation that were conducted in this project. They are outlined as follows:


4.2 Topics to be discussedAs mentioned, new power plants are a major concern for communities, especially those located directly adjacent to a proposed power plant. Seeking for their true concerned or specific issues can help shaping the decision or action of the project developer.

In Thailand, the biggest concern is related to pollutions from the power plant. This includes air pollution, water pollution, noises, and safety. Many people in Thai communities are still having bad images of ancient large-scale power plants where pollutions were generated. For current situation, technologies and regulations has been continuously upgraded and revised. Therefore, such situation is mostly likely not going to happen. Therefore, it is important to elaborate the pollution generation by the biomass gasifica-tion power plant to the community members.

Concept of the community biomass gasification power plant is different from existing large-scale power plants. The existing large-scale power plants are owned by private companies or the government. There is no concept for investment sharing and benefit sharing. Management of the power plant is organized by the owner. For the community biomass gasification power plant, community members can share investment and benefits of the power plant. They can also participate in designing how to operate the power plant. They can also gather biomass waste in the community and sell to the power plant. This may be carried out by discussing business plan among the shareholders of the power plant, showing how the power plant can be part of their daily life.

4.4 Public meetingsThe purpose of setting up public meetings where all parties are present is to achieve general consensus with community stakehold-ers. The project developer must ensure that they have secured agreement from the public to continue the project before setting public meetings. Otherwise, confrontation and heated arguments may occur.

4.3 Individual group meetingThe utilization of focus group disucssions, customized to individuals, reduces confusion for each group, as detailed explanations can be delivered to community members while conceptual project ideas are offered to the authorities.

Setting individual group meetings allows different meeting times for each group, which must be respected. The objective is to increase the participation of the stakeholders both men and women. Stakeholder consultations/engagements are anyways impor-tant to all sorts of projects. For example, if the community members are farmers, they work during the day. So, meeting times should normally be set in the evening, after dinner; there is no weekend or weekday for these stakeholders. Planting and harvesting seasons should also be considered as unsuitable when setting up meeting times.

Certain groups may have difficulty understanding the whole picture of the project, and sufficient time must be allowed for them to digest the information provided. That said, it is recommended that each meeting should be no further than one month apart.

Women are often one of the most influential groups within communities. Women tend to ask more detailed questions than men, and they dive deeper into the topics presented. It is recommended to set up several meetings targeting key women in the community.


5. Getting permitsAccording to the Energy Regulatory Commission (ERC) office, there are 11 stages before the construction of a small power plant (less than 10 MW), as shown in Figure 12. According to the ERC of Thailand, small power plants do not need to carry out an Environmental Impact Assess-ment (EIA).

1

2

3

4

5

6

7

8

9

10

11

Factory Permit

Construction Permit

ElectricityProduction Permit

Controlled Energy Production Permit

Zoning Area Law

Environmental Impact Assessment (EIA)

Power PurchaseAgreement (PPA)

Factory License

BuildingConstruction Permit

Energy Industry Operation License

Controlled EnergyProduction Permit

License for the Energy Industry operation

Power Purchase Agreement (PPA) by (EGAT, PEA, MEA)

Town Planning Act, B.E. 2518(Zoning industry in zoning area) [Section 48]

Factory license (Environmental

and Safety Assessment: ESA)

Department of industrial work

Permit requirement : Equipment or Machinery > 5 hp

Objective : Safety, Environment, Community According

to Ministerial regulations

[Section 48]Building construction permit

by Department of Local Administration (DLA)

Permit requirement : Building construction depends on low each area

and rules of Department of Public Works and

Tower & Country Planning

Objective : Safety for building construction

[Section 48]Controlled energy production permit by DEDE

Permit requirement : Rated power of a generator > 200 KVA

Objective : Safety of electrical device according

to DEDE ’s regulations

[Section 47]Energy Industry Operation license by ERC.

Permit requirement : Power > or = 1000 KVA

< 1000 KVA (Notified)

Objective : According to policy / Power plant efficiency /

service quality according to ERC.’s regulations

EIA : (Thermal power plant ≥ 10 MW must prepare EIA report and approved by expert committee)

[License according to section 47; by ERC.][License according to section 48; ERC shall have to solicit for comments from the authoritative agencies under those respective laws.]

Factory Act, B.E. 2535

Building Control Act, B.E. 2552

Energy Development

and Promotion Act, B.E. 2535

Energy Industry Act,

B.E. 2550

While obtaining the necessary permits, there are a number of documents that need to be prepared, as well as multiple criteria that must be met. In most cases, corrections and additional documents are required for resubmitting. The costs and time of traveling to the necessary authorities and organizations could be very high for inexperienced project developers. Although ERC has set up a one-stop service for getting these permits (more information on the ERC website), it is still quite difficult. Therefore, it is recommended to hire experienced consultant firms to do this.

Figure 12 Licenses related to the development of a power plant.



Future direction of small power plants in Thailand

While working with communities in developing the UNIDO-funded community biomass gasification power plants in Thailand, all procedures mentioned in this document were carried out.

As of 2020, the government of Thailand introduced a new policy to support community power plants, especially those that are smaller than 10 MW (VSPP). The new policy aims to increase the share of biomass in electricity production by 700 MW in 2021, as well as increase jobs in communities, increase income for community members and reduce particu-late matters 2.5 (PM 2.5) emissions from burning biomass. The new policy emphasizes supporting biomass, biogas, solar and hybrid RE technologies. With this scheme, communi-ties can work hand in hand with the private sector in developing community power plants. The investments and the benefits from these power plants shall be shared fairly between communities and the private sector in line with guidelines drafted by the Ministry of Energy.

This new scheme combines strength of both private sector and communities, with the private sector offering their expertise in developing and managing power plant projects while communities produce and acquire biomass for the power plant. Together, they can create a successful community biomass gasification power plant.

COMMUNITY BASED SMALL SCALE BIOMASS POWER PLANTS IN THAILAND:GUIDEBOOK FOR DEVELOPERS

guidebook for developers update 31oct2020

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