Economical sensitivity analysis of rice husk utilization in a 300 kWel Micro Thermal Power Plant

Abstract

Production of rice husks in Rio Grande do Sul State, which is the major rice production state in Brazil, needs to be adequately managed to diminish environmental impacts. A Micro Thermal Power Plant (MTP), which is a compact and small-scale biomass thermal power plant technology, can be used in electricity generation in thermal power plants with a power capacity up to 800 kWel. This paper presents a feasibility analysis of a 300 kWel MTP that is fuelled by rice husks using two different scenarios: the autoproduction (Case 1) and the independent production (Case 2) of electricity. Both scenarios were found to be unfeasible. Therefore, a sensitivity analysis is performed to evaluate the variables that affect feasibility, such as the electricity commercialization price, the value of certified emission reductions and the financial interest rates. According to sensitivity analysis, small-scale thermal power plants could have feasibility if they received incentives through government programmes, such as through the exemption of equipment taxes and/or the reduction or elimination of the financial interest rate.