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MARKET POTENTIAL STUDY FOR ORGANIC RANKINE CYCLE TECHNOLOGY IN INDIA Even though there have been a number of projects in various Indian industries that employ the waste heat recovery methodology of the CDM, the potential of waste heat recovery is still not fully tapped. Some of the reasons for this potential not being tapped fully till now are: 1. The waste heat from cement plants has a lower temperature than the waste heat from many other industries, such as iron and steel. Since traditional steam power cycles need high waste heat temperatures, these technologies have not penetrated much in the sector. On the other hand this is an opportunity for the Organic Rankine Cycle technology that utilises such low temperature waste heat, but the full potential of the technology is yet to be demonstrated for mass adoption. 2. The waste gases from many industries contain large amounts of particulate material that need to be removed before feeding them to the boiler or heat recovery units. This leads to a higher cost of power generation, reducing the feasibility of the projects in many cases. 3. Non-availability of technology within the country is another major hurdle. The import of technology leads to high capital expenditure, something that many of the depressed industries may not find feasible. 4. The high capital cost makes it unattractive for companies to install these systems. A waste heat recovery unit for power generation based on ORC is INR 10 to 13 crores per MW, even more than per MW cost of any renewable technology, the latter being highly incentivised by the government through schemes such as the Feed In Tariffs (FIT), Generation Based Incentives (GBI), Accelerated Depriciation (AD) etc. It should be noted that these schemes are to a large extent responsible for bringing the cost of renewable energy at par with the energy from conventional sources. Similar schemes are there for energy efficiency initiatives, but are so few in number or the financial impact is so low that many a times in the end the cost of technologies, such as ORC, becomes prohibitive. 5. There is also a lack of demonstration projects of ORC technologies in Indian industrial sector to show its applicability for the low temperature waste heat sources. The few installations that are there in the country are for research or for academic purposes, and thus the financial viabilities have never really been fully explored. 6. The flue gas generated from the furnace in the glass industry has significant amount of corrosive components, such as SOx and NOx, dust and traces of chlorides, fluorides and metals, present as impurities in the raw materials. This reduces the service life of the waste heat recovery system leading to higher operating and maintenance costs of such systems. More capacity building efforts must be taken up for the technicians 7. Sincethewasteheatrecoverysystemsaredirectly coupled with the manufacturing processes, any operational failure in such system leads to system downtime, thereby, causing production losses. This also has caused many of the industries to shy away from installing such systems, a fear that can be removed if more manufacturers of these systems come in direct contact with the customers to show the systems have functioned in difficult conditions over years without any issues. The potential of using ORC technology in India, assessed above, is thus approximately 4,406 MW out of which 758 MW can be installed in just three manufacturing industry segments (Cement, Iron & Steel and Glass). Although this gives an idea of the possible applications of this technology in India, although determining the realisable potential and acceptability in these industrial sectors requires more in-depth sector-wise analysis. Challenges faced by the industry related to financing, technology and regulatory issues needs to be identified and addressed by involving various stakeholders such as governments, technology providers, and financial institutions. Different business models (ESCO, RESCO, captive power plants, third party sale, sale to DISCOMs etc.) needs to be explored to bridge the gap in the viability of such projects. 44PDF Image | ORGANIC RANKINE CYCLE TECHNOLOGY IN INDIA
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