Comparison of China’s Biomass Combustion Power Generation with Different Installed Capacities

Abstract

As a major technical route to utilize biomass energy, biomass combustion power generation (BCPG) has been shown to be of environmental and economic significance. According to the operating experience, the installed capacity has a decisive impact on the operation and economic return of BCPG projects. In China, an installed capacity of either 30 MW or 12 MW is often chosen for constructing a BCPG project. To explore which one is more suitable for China, this paper uses actual operating data to compare the operation performance and techno-economics of two representative BCPG projects with an installed capacity of 30 MW and 12 MW. The results show that the operation situation and electricity production of the 30 MW project are better than those of the 12 MW project. The 30 MW project has a lower biomass consumption than the 12 MW project to produce per unit of electricity. The Internal Rate of Return (IRR) of the 30 MW project is greater than the industry benchmark in China and is almost three times the IRR of the 12 MW project. Therefore, it is recommended to construct BCPG projects with installed capacity of 30 MW in China.