Technical and financial viability of wood gasification based off grid electricity generation in Sri Lanka

Abstract

In this research project the technical and financial viability of wood gasification based off- grid electricity generation in Sri Lanka were analyzed. A six phase model was introduced to develop and implement a village Dendron system. A financial analysis was carried out to search the financial viability of the system. A literature survey for the existing wood gasification based off grid village Dendron systems in Sri Lanka was carricd out. Overall activities from feasibility study up to commissioning stage of Batugammana village Dendron system were studied as a case study. The six phase model outlines salient features of the development and implementation stages of such systems, emphasizing the requirement identification and method of requirement analysis, feasibility study, project design including electro mechanical equipment specification and financial model as well as operation & maintenance systematically./ The financial model was developed with real assumptions and actual data reflecting the case study to scarch the financial viability of a wood gasification based off grid village dendro system. The Net Present Value and Internal Rate of Return were calculated for both Project and Equity aspects. A Sensitivity analysis was conducted to search the financial viability as well as the most appropriate financially viable operating state of the Power plant ensuring the optimum financial viability of the village dendro system on both domains. According to the findings, the village dendro system developed for the case study was analyzed and found it was not financially viable. Therefore the options and steps to be taken to make such systems financially viable were also discussed and key parameters were calculated through the financial model./ It was revealed through the financial model, a village dendro system is not financially viable, if the Power plant does not deliver power at it's maximum continuous rating mode all the lime. That occurs, the number of households are not enough to consume power at the predetermine wattage per household or unavailability of other income generating activities which consume power when running the machine on the said mode.