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ORGANIC RANKINE CYCLE TECHNOLOGY IN INDIA

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ORGANIC RANKINE CYCLE TECHNOLOGY IN INDIA ( organic-rankine-cycle-technology-in-india )

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MARKET POTENTIAL STUDY FOR ORGANIC RANKINE CYCLE TECHNOLOGY IN INDIA recovery. But the initial costs of setting up a waste heat recovery system, especially an ORC, is between INR 81 million (EUR 1.2 million) and INR 108 million (EUR 1.7 million) per Mega Watt.25 This is almost at par with the capital expenditure involved in setting up a plant of similar capacity based on renewable sources of energy, such as wind, solar, biomass, or small-hydro. The CMA has petitioned the government to consider waste heat recovery as a part of renewable energy sources. Renewables currently receive incentives, that include preferential tariffs for sale of electricity generated, accelerated depreciation benefits, generation based incentives, capital subsidies, import duty exemptions, tax exemptions and research and development support amongst various others. The Biomass Power and Cogeneration Programme of the Ministry of New and Renewable Energy (MNRE) have incentivised the usage of ORC systems in biomass and cogeneration plants. Any plant under this programme can avail of an 80% Accelerated Depreciation benefit on the purchase of the ORC systems, thereby reducing the high initial capital costs of setting up an ORC system. As per the Power Minister of the state of Assam, Mr. Pradyut Bordoloi, the state is planning to formulate a policy that makes the inclusion of waste heat recovery systems compulsory in all coking coal factories. Assam currently has over 40 coking coal factories that not only have very high emission levels, but are also not contributing to emission reduction efforts. The industry can currently avail of all incentives under the North-Eastern Industrial and Investment Promotion Policy (NEIIP-2007) to implement such energy efficiency measures. If these factories fail to set up the waste heat recovery systems, they will be ineligible for all these incentives and will be put on a negative list under the NEIIP policy. The coking coal plants have high heat generation from the furnaces, and are therefore, ideally suited to adopt the waste heat recovery systems. However, if stringent penalty measures are not taken for non-compliance, then it might be difficult to bring energy efficiency measures into an industry that has so far has had no economic or regulatory incentive to promote them. In 2010, the Ministry Of Power (MOP) of the Government of India set up the State Energy Conservation Fund (SECF) under section 16 of the EC Act of 2011. The total amount dedicated to this fund from 2010 to 2012 was INR 700 million (EUR 10.8 million). The funds are disbursed by the BEE. The initial disbursement carried out by the BEE was for a total of INR 173 million (EUR 2.7 million) during the financial year 2009-10. Table 7 gives the state wise breakup of the distributed funds. This initiative by the MOP encourages the adoption of energy efficiency methods at the state level, thus ensuring more targeted efforts. table 7: funds disbursed by the BEE under the sEcf state amount millions(inr) amount (Eur) Nagaland 12.5 1,92,308 Haryana 20 3,07,692 Punjab 20 3,07,692 Rajasthan 20 3,07,692 Kerala 20 3,07,692 Andhra Pradesh 20 3,07,692 Tamil Nadu 20 3,07,692 Karnataka 20 3,07,692 Chhattisgarh 20 3,07,692 Source: Ministry of Power, Govt. of India 25Energy Manager Training, Cogeneration of Power Utilising Waste Heat in Cement Manufacture: Technological Perspectives http://www.energymanagertraining.com/Journal/24032006/ CogenerationofPowerUtilisingWasteHeatinCementManufacture.pdf 28

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