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A Pricing Model for Biomass-based Electricity

Biomass generation systems using gasification technology can provide clean energy and can be a dependable source of power to complement the main power supply. Electricity price fixation has an important role in the power market. A generalized pricing method should take care of the demand variations and the market conditions. This article proposes a model for determining the price of electrical energy from biomass-based power plants considering operating constraints and the economic components that influence the electricity price. It incorporates the Clean Development Mechanism benefit, income from by-products, and penalty factors in addition to the economic components. The model developed is applied to a typical biomass gasifier generating unit in India for determining the electricity price.