Unit II

Power Generation techniques by Non -Conventional energy Sources

Syllabus :

Different types of Nonconventional Energy Sources, Comparative benefits over conventional type, contribution of
conventional & nonconventional energy sources, Solar energy – Its characteristics, basic concept of solar power
plant, major solar power plants in India/world, Wind power plant– schematic arrangement - vertical axis, horizontal
axis – electrical generator
Hybrid solutions: Wind Turbine, diesel, WT-solar etc. – major wind farms in India / world, Power generation by
bio gas, biomass, geothermal energy and tidal energy– its types,
Magneto Hydro Dynamics (MHD), Concept of carbon credit.

6.1 Introduction

 The energy requirement of the world is increasing at a tremendous rate due to increase in population,
industrialization, higher standards of living, etc.
 Today major contribution in the generation of electrical energy is fossil fuels such as coal, oil, gas,
etc. which are being depleted quickly.
 It is estimated that 80% of supply of oil and gas will be consumed in our life.
 Coal stocks are also not last longer than a few decades.
 More over pollution hazards, arising out of fossil fuel burning has become quite significant in recent
years.
 Also nuclear power has number of problems, due to its radioactiveness.
 Therefore one should consider the other energy sources as a replacement to the conventional energy
sources.
 Such types of energy sources are non-conventional energy sources and renewable energy sources.
 It is hope that these alternative energy sources will be able to meet considerable part of the energy
demand in coming future.
 The major advantages of these sources are that free, inexhaustible and non polluting.
 Following are some renewable / non-conventional energy sources :
1. Solar energy 2. Wind energy
3. Biomass 4. Geothermal energy
5. Tidal energy.

6.2 Solar Energy

 Sun is the source of heat and light. The sun produces heat by various nuclear fusion reactions.
 As the thermal energy radiated by the sun inexhaustible this energy is called as renewable source of
energy.
 The diameter of the sun is about 1.39  106 km. The diameter of the earth is about 12000 km and the
mean distance between the sun and the earth is 1.49  108 km.
 The sun subtends an angle of 32 minutes at earth surface therefore earth receives the radiations with
parallel rays.
 Methods of converting solar energy to electrical energy
 Solar-Thermal P.S.
 Solar-Wind P.S.
 Solar Cells (Photo Voltaic Cells)
6.2.1 Potential of Solar Energy :
 The energy emitted by the sun in space is 3.7  1026 watts.
 Out of which 5  10–10th part of solar energy is received by the earth. Which is equivalent to 107 
1017 watts.
 The energy emitted by the sun within 3 minutes is equivalent to the world energy consumption during
a year.
 Thus the importance of the solar energy is justified and it would full fill the major requirement of
demand of energy in next few years.
 Most of the solar radiation reaches earth as electromagnetic waves about 0.25 to 3  wave length.
About half of these radiations is visible as light and the rest is infrared which accounts for heat.
 The intensity of the solar radiations is reduced by clouds, dust, etc.
 The intensity of solar energy in India is approximately 1.12 kW/m2 and the monthly average solar
energy in India is 50 kJ/cm2 / month (as per the metrological department of India).
 Solar energy has three attractive characteristics, first the sun is essentially an infinite source of
energy, second, this energy is available to all nations and third, this can be harnessed with minimum
detrimental effects on the environment.
6.2.2 Solar Photovoltaic Systems :
 When the consumers are away from the main electrical distribution network and remote areas, then
photovoltaic technology may provide significant renewable energy.
 Direct conversion of solar energy is achieved by solar cells (Photovoltaic cells).
 These devices convert sunlight directly to d.c. power without discharging waste products.
 They need little maintenance and are long lived, their energy sources unlimited and they can be made
from raw material that are available in huge quantities.
 A single cell has a rated voltage of about 0.5 V and rated power of about 0.3 W.
 Fig. 6.2.1(a) shows the simple block diagram of solar system used to supply a.c. and d.c. loads.
 Solar cells are made of thin layer of N material and a thick layer of P type material.
 Fig. 6.2.1(b) shows the solar cells used in solar panel.
 When solar cells are exposed to sunlight, it converts solar energy into electrical energy.
 Further this electrical energy is either stored by batteries or directly given to d.c. load.
 For supplying to a.c. loads, the electrical energy obtained from solar cells is fed to inverter via
battery.
 Inverter converts d.c. supply into a.c. supply.
 One cell can generate maximum 0.6 Volts. Therefore to achieve normal supply voltage a number of
series-parallel combinations of cells are used.
 In solar Photovoltaic systems the intermediate thermal energy stage is absent and solar energy is
directly converted into electrical energy. Therefore problems of high temperature materials and
excessive thermal loss are absent.

(a) Solar system

(b) Solar cells

Fig. 6.2.1

6.2.3 Construction and Principle of Working of Photovoltaic

System :
 A solar cell is a small semiconductor device which has a light sensitive N-P junction.
 When solar light rays strike the N-P junction, DC emf is generated with P terminal as positive and
N terminal as negative.
 Normal rating of a typical PV cell when exposed to full sun light are :
Voltage – 0.450 D.C
Current – 0.75 A D.C
Power – 0.33 W.
 Several solar cells are connected in series parallel combination to get defined voltage, current and
power.
 The DC output power depends upon total number of cells and power per cell.
 Solar photovoltaic cells are installed outdoor in a position to receive maximum sun light during the
day and an year.
 Sufficient electrical output is obtained only in sufficient intensity of sun light.
 In cloudy weather and during night period the output is very less. Therefore energy storage batteries
are changed during sun light and low load conditions. Which when supply the electrical energy in
cloudy and or in night periods.
 But the drawback of these storage batteries is that it can not provide the electrical energy beyond a
few hours.
 Also most of the loads are of AC, 50 Hz in nature. Therefore inverter is necessary to convert D.C.
supply of battery into AC supply either in single phase or in three phase according to requirement.

Construction and principle of operation :

 Photovoltaic cell is made of semi-conducting material such as silicon.
 Solar cell has two layers (N type and P type) having two terminals namely positive and negative.
These are cells light sensitive.
 ‘P’ type of material is obtained by doping silicon crystal with P type impurity and ‘N’ type of material
is obtained by doping silicon crystal with N type impurity.
 The P type layer is thick and so as N type layer is made thin and transparent.

Fig. 6.2.2 : P type and N type of semiconductor

 When sun light strikes on the N type thin layer, some of the waves of light energy penetrate upto P
type layer.
 The energy from photons in the light waves is imparted to the molecules and atoms in the N-P
junction resulting in liberating the electron hole pairs.
 Electrons are released from a N type material and holes are created in P type material.
 When external electric circuit is completed through the load, the electrons flow in the closed external
circuit from N type terminal to P type terminal i.e. the flow of current takes place.
 This process is continuous and cause flow of continuous current.
6.2.4 Characteristics of Solar Cell :
 As the output of solar cell is not constant, its ratings is specified by different characteristics.
 Mainly two types of characteristics are
– Volt-ampere characteristics
– Volt-output power characteristics.
 The voltage and current delivered by the photovoltaic cell is measured in good light condition.

Fig. 6.2.3(a) : Testing set of a PV cell

 A load resistance is connected across a PV cell and keeping it on a maximum position (i.e. open
circuit), voltage obtained is about 0.5 V D.C and current I is zero.
 This load resistance is gradually reduce to zero and at the same instant, voltmeter and ameter readings
are taken.
 The graph between corresponding values of V and I is known as V-I characteristics of photovoltaic
cell.
 At knee point K characteristic under goes a smooth charge and we get a flat portion (i.e. line K.S)
 At zero load resistance i.e. (R = 0), current obtained is maximum and called as Isc and voltage is zero
(Vo).
 Similarly at infinite load resistance, current becomes zero and voltage obtained is the maximum
voltage (i.e. Voc).
 The change in the current from point is almost nil. Hence solar cell is called as a constant current
source.
 Fig. 6.2.3(b) shows a typical volt ampere characteristics of a photo voltaic cell.

Fig. 6.2.3(b) : V-I characteristics of PV cell

 Fig. 6.2.3(c) : Volt-output power of PV cell

 Power delivered by the solar cell is given as

P = VI (Watts).
Where, V = Voltage at solar cell terminals (Volts).
I = Current delivered by solar cell (Amp).
 Graph is obtained by multiplication of V and I.
 The maximum point of power is at knee point K and it is preferable to operate a PV cell with
maximum possible light and at knee point K to obtain maximum power and hence maximum
efficiency.
6.2.5 Solar Cell Materials :
 Solar cells are made of single crystal silicon whose efficiency is about 10 to 12%.
 The raw material for the solar cell is high purity silicon generally which is used in semiconductor
devices.
 Single crystal silicon cell arrays are grown from a bath of molten material, and Silicon cylinder is
formed further which is sawed into thin wafers.
 The wafers are polished and chemically treated. After connecting the leads, they are fitted to arrays.
 Another material which can be used as a solar cell is a gallium arsenide.
 Efficiency achieved with this material is about 20 to 25%.
 Silicon cells can function at 10 sun amplification where as gallium arsenide cells can operate at 1000
sun amplification.
 6.3 Wind Energy

 Among the several non conventional / renewable energy sources as a replacement of fossil fuels,
wind energy is a most attractive solution due to its safety and cleanliness.
 Wind power was used earlier, for several countries for various purposes such as driving wind mills,
propelling ship, pumping water etc.
 Small wind power units will play vital role in the present condition of shortage especially in
development of villages.
 The winds on earth surface are caused primarily by the unequal heating of the land and water by the
sun.
 The differences in temperature gradients induce the circulation of air from one area to another.
 It has been estimated that roughly 10 million MWs of energy are continuously available on the earth
wind.
 Utilization of some of this energy will play a decisive role in economic development of many
countries where winds are strong and steady.
6.3.1 Selection of Sites for Wind Mills :
 For deciding the site for wind mills, sitting studies are conducted at several possible locations.
 While selecting number of sites winds of average speed of at least 8 m/s are selected.
 The sites are usually classified into following categories :
1. Plane land sites
2. Hill top sites :
1. On-shore
2. Off-shore shallow water.

 The main criteria in selecting the site for wind mills are :
 As high average wind speeds are necessary to make wind farms economical and the turbine power is
proportional to V3. Therefore site selected, should have adequate and uniform average wind velocity
through year. (7 m/s to
28 m/s).
 Also site selected should be free from cyclones, floods, lighting strokes.
 Site selected should be vacant land free from forests, townships, etc.
 It should be near to distribution centre nearly within 10kms to connect it to electrical grid.
 The land available should have sufficient bearing capacity so that heavy machineries can be installed.
 Also, the land available should be cheap and further expansion is possible.
 Power station should have the transportation facility such as road and rail for transportation of material
and machinery.
 Environmental clearances.
8.8.2 Wind to Electric Energy Conversion System

Following are the two types of systems of wind to electric energy conversion :
(a) Variable speed constant frequency system (VSCF).
(b) Constant speed constant frequency system (CSCF).
 The power in the wind is proportional to :
 the area of windmill being swept by the wind.
 the cube of the wind speed.
 the air density - which varies with altitude.
The formula used for calculating the power in the wind is shown below :
Density of air  Swept area  Velocity cubed
Power = 2
1
P =  ρ  A  V3
2
where, P is power in watts (W)
ρ is the air density in kilograms per cubic metre (kg/m3)
A is the swept rotor area in square metres (m2)
V is the windspeed in metres per second (m/s)
 The fact that the power is proportional to the cube of the windspeed is very significant. This can be
demonstrated by pointing out that if the wind speed doubles then the power in the wind increases by
a factor of eight.
 It is therefore worthwhile finding a site which has a relatively high mean windspeed.
 Although the power equation above gives us the power in the wind, the actual power that we can
extract from the wind is significantly less than this figure suggests.
 The actual power will depend on several factors, such as the type of machine and rotor used, the
sophistication of blade design, friction losses, and the losses in the pump or other equipment
connected to the wind machine.
 There are also physical limits to the amount of power that can be extracted realistically from the
wind. It can be shown theoretically that any windmill can only possibly extract a maximum of 59.3%
of the power from the wind (this is known as the Betz limit).
 In reality, this figure is usually around 45% (maximum) for a large electricity producing turbine and
around 30% to 40% for a windpump.
 So, modifying the formula for ‘Power in the wind’ we can say that the power which is produced by
the wind machine can be given by :
1
PM= 2  Cp  ρ  A  V3

where,
PM is power (in watts) available from the machine
Cp is the coefficient of performance of the wind machine
 It is also worth bearing in mind that a wind machine will only operate at its maximum efficiency for
a fraction of the time it is running, due to variations in wind speed.
 A rough estimate of the output from a wind machine can be obtained using the following equation;
PA= 0.2 A V3
where,
PA is the average power output in watts over the year
V is the mean annual windspeed in m/s
8.8.3 Selection of Sites for Wind Mills
 For deciding the site for wind mills, sitting studies are conducted at several possible locations.
 While selecting number of sites winds of average speed of at least 8 m/s are selected.
 The sites are usually classified into following categories :
o Plane land sites
o Hill top sites :
 On shore
 Off shore shallow water.
 The main criteria in selecting the site for wind mills are :
o As high average wind speeds are necessary to make wind farms economical and the turbine
power is proportional to V3. Therefore site selected, should have adequate and uniform
average wind velocity through year. (7 m/s to
28 m/s).
o Also site selected should be free from cyclones, floods, lighting strokes.
o Site selected should be vacant land free from forests, townships, etc.
o It should be near to distribution centre nearly within
10 kms to connect it to electrical grid.
o The land available should have sufficient bearing capacity so that heavy machineries can be
installed.
o Also, the land available should be cheap and further expansion is possible.
o Power station should have the transportation facility such as road and rail for transportation of
material and machinery.
o Environmental clearances.

8.9 Block Diagram of Wind Energy Conversion

System

8.9.1 Variable Speed Constant Frequency System (VSCF)

 Variable speed system consists of simple wind turbine and a variable frequency generator.
 The electrical output obtained is of variable frequency ranging from 0 to 20 Hz.
 Electronic solid state frequency converter converts the variable frequency output of wind turbine-
generator unit to constant grid frequency output i.e. 50 Hz  3%. Hence the system is called as VSCF.
 Thyristor converters makes the frequency conversion simple and reliable.
 These types of Wind Turbine Generator unit (WTG) are becoming more popular whose output ranges
from
(0 to 50 MW).
 Fig. 8.9.1 : Block diagram of VSCF system

 The drawback of higher cost of frequency converter is compensated by lower cost of wind turbine;
longer life of variable speed machine and superior performance of controller.
 During the past few years the variable-speed wind turbine has become the dominant type among the
installed wind turbines. Variable-speed wind turbines are designed to achieve maximum
aerodynamic efficiency over a wide range of wind speeds.
 With a variable-speed operation it has become possible continuously to adapt (accelerate or
deaccelerate) the rotational speed of the wind turbine to the wind speed v.
 This way, the tip speed ratio is kept constant at a predefined value that corresponds to the maximum
power coefficient.
 Contrary to a fixed-speed system, a variable-speed system keeps the generator torque fairly constant
and the variations in wind are absorbed by changes in the generator speed.
 The electrical system of a variable-speed wind turbine is more complicated than that of a fixed-speed
wind turbine.
 It is typically equipped with an induction or synchronous generator and connected to the grid through
a power converter.
 The power converter controls the generator speed; that is, the power fluctuations caused by wind
variations are absorbed mainly by changes in the rotor generator speed and consequently in the wind
turbine rotor speed.
 The advantages of variable-speed wind turbines are increased energy capture, improved power
quality and reduced mechanical stress on the wind turbine.
 The disadvantages are losses in power electronics, the use of more components and the increased
cost of equipment because of the power electronics.
 The introduction of variable-speed wind-turbine types increases the number of applicable generator
types and also introduces several degrees of freedom in the combination of generator type and power
converter type.
8.9.2 Constant Speed Constant Frequency System (CSCF)
 Fig. 8.9.2 indicates the components of constant speed constant frequency systems.

Fig. 8.9.2 : Block diagram of CSCF system

 CSCF system consists of a wind turbine along with constant speed drive.
 Constant speed drive is obtained by following means :
(1) Pitch control of turbine blades (furling).
(2) Gear box between generator shaft and the turbine shaft.
 This complete assembly rotates the synchronous generator at a constant speed to achieve constant
frequency (50 Hz) output. Thus constant speed is known as synchronous speed (Ns).
 The frequency obtained is :
F = Ns  P/120
Where F = Frequency in Hz
Ns = Synchronous speed in rpm.
P = Number of poles in the generator.
(such as 2, 4, 6….)
 To achieve 50 Hz frequency :
For 2 poles Ns = 3000 rpm.
4 poles Ns = 1500 rpm
6 poles Ns = 1000 rpm
 The main advantage of CSCF system is that, costly frequency converter is not required.
 The generator output can directly be utilized by the load or it can be connected to the grid.
 In the early 1990s the standard installed wind turbines operated at fixed speed. That means that
regardless of the wind speed, the wind turbine’s rotor speed is fixed and determined by the frequency
of the supply grid, the gear ratio and the generator design.
 It is characteristic of fixed-speed wind turbines that they are equipped with an induction generator
(squirrel cage or wound rotor) that is directly connected to the grid, with a soft-starter and a capacitor
bank for reducing reactive power compensation.
 They are designed to achieve maximum efficiency at one particular wind speed. In order to increase
power production, the generator of some fixed-speed wind turbines has two winding sets: one is used
at low wind speeds (typically 8 poles) and the other at medium and high wind speeds (typically 4-6
poles).
 The fixed-speed wind turbine has the advantage of being simple, robust and reliable and well-proven.
 And the cost of its electrical parts is low. Its disadvantages are an uncontrollable reactive power
consumption, mechanical stress and limited power quality control.
 Owing to its fixed-speed operation, all fluctuations in the wind speed are further transmitted as
fluctuations in the mechanical torque and then as fluctuations in the electrical power on the grid. In
the case of weak grids, the power fluctuations can also lead to large voltage fluctuations, which, in
turn, will result in significant line losses.
 8.10 Types of Wind Turbines

 There are two main families of wind machines: vertical axis machines and horizontal axis machines.
These can in turn use either lift or drag forces to harness the wind.
 The horizontal axis lift device is the type most commonly used. In fact other than a few experimental
machines virtually all windmills come under this category.
8.10.1 Horizontal Axis Wind Turbine

 A in which the axis of the rotor’s rotation is parallel to the wind stream and the ground is known as
the horizontal axis wind turbine.
 All grid-connected commercial wind turbines today are built with a propeller-type rotor on a
horizontal axis (i.e. a horizontal main shaft).
 Most horizontal axis turbines built today are two or three-bladed, although some have fewer or more
blades.
 The purpose of the rotor is to convert the linear motion of the wind into rotational energy that can be
used to drive a generator.
 The same basic principle is used in a modern water turbine, where the flow of water is parallel to the
rotational axis of the turbine blades.
 When the wind passes blades creates a lower-pressure area above the airfoil.
 The pressure difference created between top and bottom surfaces is the main reason to develop the
aerodynamic lift.
 As the blades of a wind turbines are fixed to hub this aerodynamic lift causes rotation about the hub.
 Along with the lift force, a drag force is also created which is perpendicular to the lift force and
supports the rotor rotation.
 In the design consideration of the wind turbine high lift-to-drag ratio is a prime objective.

Advantages of HAWT :

 Variable blade pitch, which gives the turbine blades the optimum angle of attack. Allowing the angle
of attack to be remotely adjusted gives greater control, so the turbine collects the maximum amount
of wind energy for the time of day and season.
 The tall tower base allows access to stronger wind in sites with In some wind shear sites, the by 20%
and the power output by 34% for every 10 meters in elevation.
 High efficiency, since the blades always move perpendicular to the wind, receiving power through
the whole rotation. In contrast, all vertical axis wind turbines, and most proposed designs, involve
 various types of reciprocating actions, requiring airfoil surfaces to backtrack against the wind for
part of the cycle. Backtracking against the wind leads to inherently lower efficiency.
 The face of a horizontal axis blade is struck by the wind at a consistent angle regardless of the position
in its rotation. This results in a consistent lateral wind loading over the course of a rotation, reducing
vibration and audible noise coupled to the tower or mount.
Disadvantages of HAWT :

 The tall towers and blades up to 45 meters long are difficult to transport. Transportation can now
amount to 20% of equipment costs.
 Tall HAWTs are difficult to install, needing very tall and expensive cranes and skilled operators.
 Massive tower construction is required to support the heavy blades, gearbox, and generator.
 Reflections from tall HAWTs may affect side lobes of installations creating signal clutter, although
filtering can suppress it.
 Their height makes them obtrusively visible across large areas, disrupting the appearance of the
landscape and sometimes creating local opposition.

Fig. 8.10.1 : Horizontal axis and vertical axis wind turbine

 Downwind variants suffer from fatigue and structural failure caused by turbulence when a blade
passes through the tower’s wind shadow (for this reason, the majority of HAWTs use an upwind
design, with the rotor facing the wind in front of the tower).
 HAWTs require an additional control mechanism to turn the blades and nacelle toward the wind.
 In order to minimize fatigue loads due to wake turbulence, wind turbines are usually sited a distance
of 5 rotor diameters away from each other, but the spacing depends on the manufacturer and the
turbine model.
8.10.2 Vertical Axis Wind Turbine
 A type of in which the axis of rotation is perpendicular to the wind stream and the ground.
 VAWTs work somewhat like a classical water wheel in which water arrives at a right angle
(perpendicular) to the rotational axis (shaft) of the water wheel.
 Vertical-axis wind turbines fall into two major categories : Neither type is in wide use today.
 Key advantages of this arrangement are that the turbine does not need to be pointed into the wind
to be effective. This is an advantage on sites where the wind direction is highly variable.
 With a vertical axis, the generator and gearbox can be placed near the ground, so the tower doesn’t
need to support it, and it is more accessible for maintenance.
 Drawbacks are that some designs produce pulsating
 It is difficult to mount vertical-axis turbines on towers meaning they are often installed nearer to the
base on which they rest, such as the ground or a building rooftop.
 The wind speed is slower at a lower altitude, so less wind energy is available for a given size turbine.
 Air flow near the ground and other objects can create turbulent flow, which can introduce issues of
vibration, including noise and bearing wear which may increase the maintenance or shorten the
service life.
 However, when a turbine is mounted on a rooftop, the building generally redirects wind over the roof
and this can double the wind speed at the turbine.
 If the height of the rooftop mounted turbine tower is approximately 50% of the building height, this
is near the optimum for maximum wind energy and minimum wind turbulence.
The basic disadvantages are :

 The generator, gearbox etc. may be placed on the ground, and a tower is not essential for the machine.
 A yaw mechanism isn’t needed to turn the rotor against the wind.
 Wind speeds are very low close to ground level, so although a tower is not essential, the wind speeds
will be very low on the lower part of the rotor.
 The overall efficiency of the vertical axis machines is not impressive.
 The machine is not self-starting, i.e. a Darrieus machine needs a “push” before it will start. This is
only a minor inconvenience for a grid-connected turbine, however, since the generator may be used
as a motor drawing current from the grid to start the machine
 The machine may need guy wires to hold it up, but guy wires are impractical in heavily farmed areas
 Replacing the main bearing for the rotor necessitates removing the rotor on both a horizontal and a
vertical axis machine. In the case of the latter, it means tearing the whole machine down.
8.10.3 Comparison between HAWT and VAWT
 Both vertical axis wind turbines (VAWTs) and horizontal axis wind turbines (HAWTs) generate
electricity from wind power. However, the VAWT is less efficient, less durable and does not work as well
as the HAWT.
1. Physics

Wind blows faster when it is farther from the ground. VAWTs are usually built at ground level,
making their overall energy output less than a HAWT, which is erected higher in the air.
2. Efficiency

HAWTs use a propeller design to generate energy. The propeller can be turned to face the wind. A
VAWT uses the eggbeater shape so that it always faces the wind. However, although the VAWT can
produce energy this way, efficiency is lost through not having its entire blade shape always against
the wind.
3. Stress

In the design for an HAWT, the greatest stress put on the blade by the wind is at the base of the blade,
where it is strongest. In a VAWT design shaped like an eggbeater, the greatest stress is put on the
center of the curved blades, where it is weakest.
4. Structure

HAWTs rest on towers that hold them up. VAWTs may need guy cables running from their top to
the ground, which can be impractical for farming areas.
5. Maintenance

When replacing the rotor on an HAWT, it can be removed from the shaft. When replacing the rotor
on a VAWT, the entire machine must be taken down.

8.11 Advantages and Limitations of Wind Energy Conversion

(a) Advantages of wind energy conversion :

 Energy available is free of cost.

 Pollution free and clean.
 Vast wind energy is available on earth about 10 milion MW.
 Helps in supplying electric power to remote areas.
 Economically competitive.
 Wind energy can be used for obtaining mechanical power for grading, pumping etc.

(b) Limitations of wind energy conversion :

 Low energy density.

 Wind energy is irregular, unsteady and not in constant speed.
 Direction of wind is not constant.
 Small units have more reliable but have higher capital cost.
 Wind farms can be located only in vast open areas in location of favorable wind. Such locations
are generally away from load centers.
 Complex design due to several variable stresses.

6.4 Biomass and Biogas Energy

Organic matter derived from biological organisms are called as Biomass. Energy obtained from
biomass is called as Biomass energy.
Biomass resources are mainly classified into two categories :
 (i) Biomass from cultivated fields, crops, forests and harvested periodically.
(ii) Biomass derived from waste e.g. municipal waste, Animal dung, agricultural waste,
forest waste, bio process waste, fishery waste etc.

 Biomass is considered as a renewable energy source because organic matter is generated every day.
 Biomass energy is produced by green plants which absorbs photo energy from sun light, oxygen
from air, water and minerals from soil/water and produce organic mater by photo synthesis.
 The other lining organism derive the energy from the green plants. Organic matter from all the living/
dead organisms is called biomass.
[Carbon dioxide gas + Chlorophyll and moisture + solar energy]  Biomass + oxygen.

Fig. 6.4.1 : Biomass process

6.4.1 Biogas Formation Process :

Basically there are two methods of conversion process of biomass into biogas.
(i) Anaerobic digestion. (ii) Fermentation.

(i) Anaerobic digestion :

 An anaerobic is a microscopic organism that can live and grow without external oxygen or air.
 Decomposition of biomass at low temperature (65C) in the presence of moisture (80%) extract the
oxygen.
 Anaerobic digestion of biomass generates mostly methane and carbon dioxide gas with small impurities
like hydrogen sulfide.

Fig. 6.4.2 : Biogas plant producing biogas (methane)

(ii) Fermentation :
 Most of the organic materials undergoes natural fermentation in the presence of moisture and absence
of oxygen.
 In this process 60 to 80% of the carbon in the organic material is converted to a mixture of carbon
dioxide, methane, trace of hydrogen sulphide and nitrogen.
 This conversion process takes place at temperatures of
15 – 50C at atmospheric pressure.
 The gases produced by this process have heating value Eh of 50 MJ/kg.
 After purification of methane it gives heating value of
56 MJ/kg.
 One kg of dry organic material produces 0.036 m2 of methane or 36 m2 biogas per 1000 kg biomass.
(At standard temperature and pressure).
The size of anaerobic digestion plants vary from 0.5m2/day
to 2000 m3/day.
Average composition of biogas :
Following are the average composition of biogas obtained from biogas plant by the process of
anaerobic digestion.
Biproduct % output
 Methane (CH4) 55 to 60%
 Carbondioxide (CO2) 35 to 40%
 Hydrogen (H2) 0 – 3%
 Oxygen (O2) 0 – 2%

6.4.2 Biogas Plant :

 The plant which converts biomass to biogas (methane and carbon dioxide) by the process of
anaerobic digestion is called as biogas plant.
 Gobar gas is the biogas obtained from cow dung (gober).
 The feed slurry i.e. cow dung, water and various organic residues from agricultural waste is fed into
the reactor i.e. (Digester).
 Generally the ratio of various components is cow dung plus solid waste 1:1 by weight and forming
about 10% of feed content.
 Water require is 10%.
 To start and accelerate the process of anaerobic digestion seeding mater such as bacteria rich
substance is added to the slurry in the digester.
 To form the anaerobic fermentation, biomass slurry is retained in the digester for 30 to 60 days. This
time period is known as Retention time which varies with size of plant, ambient temperature etc.
 Digester temperature is kept between 25C to 63C.
 After this duration bio gas is obtained from the out let pipe on the digester tank.
Types of biogas plants :
Biogas plants are classified into following two types :
(a) Continuous type biogas plant
(i) single state continuous type
 (ii) two state continuous type.
(b) Batch type biogas plant
(i) fixed dome type
(ii) floating dome type.

(a) Continuous type biogas plants :

The plants which delivers the biogas continuously and regularly are known as continuous type biogas
plants.
(i) Single state continuous type biogas plant :
 In this type of plants, acid formation and methanation are carried out in the same chamber
without barrier.
 Such type of plants are very economical easy to operate and control.
 Generally size of such plants is small or some times medium.
(ii) Two state continuous type biogas plant :
 The plants in which acid formation and methane formation takes place in separate
chambers are called as two state continuous type biogas plants.
 Such types of plants are complex and costlier.
(b) Batch type biogas plant :
 Biomass is fed in batches to the plant and the time interval between two batches is 30 to 50 days.
 After completion of the digestion, the residue is emptied and fresh charge is fed.
 Batch type is biogas plant delivers gas intermittently and discontinuously.
 Operation and maintenance is relatively more complex.
(i) Fixed dome type biogas plant :
 Fig. 6.4.3 shows fixed dome type biogas plant.
 The feed biomass and water is feed to inlet tank.
 For stirring the mixture to form the slurry, a stirrer with handle is provided.
 The slurry is fed into the digester via inlet pipe.
 The stirrer mixes the slurry in the digester. The biogas generated by an aerobic digestion
of the biomass is collected in the upper half of the digester tank.
 As the upper dome is fixed type, if is called as fixed dome type biogas plant.
 After conversion to biogas, the residual spent slurry is discharged by opening damper
with discharge window.
 Fig. 6.4.3 : Fixed dome type biogas plant

6.5 Geo Thermal Energy

The word geothermal comes from the Greek word geo (earth) and thermal (heat), and means the heat
of the earth. Geo-thermal energy from underneath the earth. Heat is brought near to surface by thermal
conduction and by intension into the earth’s crust. It can be utilized for power generation and direct heat
applications. Potential sites for geothermal power generations have been identified mainly in central and
northern regions of the country. Earth’s interior heat originated from its fiery consolidation from dust and
gas over 4 billion year ago and is continually regenerated from the decay of radioactive elements that occur
in all rocks.
It is almost 6500 kilometers (4000 miles) from the surface to the center of the earth, and the deeper
you go, the hotter is gets. The outer layer, the crust, is three to 35 miles thick and insulates us from the hot
interior.
From the surface down through the crust the normal temperature gradient (the increase of temperature
with the increase of depth) in the Earth’s crust is 17–30C per kilometer of depth (50–87F per mile). Below
the crust is the mantle, made of highly viscous, partially molten rock with temperature between 650 and
1250C (1200 – 2280F). At Earth’s core, which consists of a liquid outer core and a solid inner core,
temperatures may reach 4000 – 7000 C (7200 to 12600F).
In some regions with high temperature gradients, there are deep subterranean faults and cracks that
allow rainwater and snowmelt to seep underground sometime for miles. The water is heated by the hot rock
and circulates back up to the surface, to appear as hot springs, mud pots, geysers, or fumaroles.
If the ascending hot water meets an impermeable rock layer, however, the water is trapped
underground where it fills the pores and cracks comprising 2 to 5% of the volume of the surrounding rock,
forming a geothermal reservoir. Much hotter than surface hot springs, gathered reservoirs can reach
temperature of more than 350C (700F) and are powerful sources of energy.
 If geothermal reservoirs are close enough to the surface, we can reach them by drilling wells,
sometimes over two miles deep.
 Then after an exploration well confirms a reservoir discovery, production well are drilled.
 Hot water and steam shoot up the wells naturally cor are pumped to the surface where at temperature
between around 120 – 370C (250 – 700F) they are used to generate electricity in geothermal power
plant.
6.5.1 Application of Geothermal Energy :

Non-electrical applications of geothermal energy are :

(a) Space heating
(b) Process heat
(c) Greenhouse heating
(d) Air-conditioning
(e) Medical therapy
(f) Mineral extraction.
Electrical applications is to produce electrical energy using steam turbine.
Generation of electrical energy by geothermal plants :
There are three types of geothermal steam plants depending on the way the energy is generated:
1. Dry Steam Power Plant : It produce energy directly from the steam generated underground. In this
case we do not need additional boilers and boiler fuels because the steam (and no water) directly fill
up the wells, passing through a rock catcher and directly operate the turbines. The using of such type
is not popular because the natural dry steam hydrothermal reservoirs are very rare.
2. Flash Steam Power Plant – It is used when there is a liquid hydrothermal resource with high
temperature (over 350 F). The operating principle is that when the hot water is released from the
pressure it is collected in a flash tank where the liquid is flashed to steam. The latter is separated from
the liquid and it is used to run the turbines. The waste water is reinjected into the hydrothermal
reservoir.
3. Binary Steam Power Plant – it is employed when the hydrothermal resource is with lower
temperature (100 F). The hot water is passed to a heat exchanger where it is compound with
secondary liquid with lower boiling point (hydrocarbon like isobutane or izopentane). This mixture
vapor and its steam run the turbine. The waste mixture is recycled trough the heat exchanger. The
geothermal fluid is condensed and it is returned to the hydrothermal resource. Since the most
resources are with lower temperature the binary steam power plants are more common.
 At present about 1500 MW of power is being generated in the world from geothermal source.
 Fig. 6.5.1 : Layout of dry steam open system geothermal
energy power plant

 Fig. 6.5.1 shows the simple layout of geothermal energy power plant with dry steam open system.
 As the steam from the geothermal field is directly fed to the turbine, it provides much simpler
construction for electric power generation.
 Steam turbine converts steam energy into mechanical energy which is further converted into
electrical energy by the alternator.
 After expansion of steam into steam turbine, it is passed through condenser where it is condensed
and then re-injected in the re-injection well.
 Such sites are available in Italy, USA and Japan. The first site with dry steam was built in Italy in
1904.
 The liquid particles and suspended solids are eliminated by using centrifugal separators.
 The supply of steam diminishes due to depletion of thermal energy of that region or insufficient
supply of ground water. Therefore to keep up steam supply new wells must be drilled.

6.6 Ocean Energy

 As the ocean convers the 70% area of the earth, a large energy resource can be obtained from it.
 There are main five oceans :
(1) Indian ocean (2) Pacific ocean
(3) Atlantic ocean (4) Arctic ocean
(5) Antarctic ocean
 From these oceans round about 130  106 MW energy can be obtained.
 But to obtain even a small part from this energy, a large capital is required.
 Following are the some important energy conversion technologies under consideration.
 Ocean thermal energy.
 Ocean wave energy
 Ocean tidal energy
 Ocean biomass energy
 Ocean geothermal energy
 Ocean chemical energy.
 As the fossile fuels are depleting very fast, ocean energy would likely to have a significant
importance during the coming decades.
6.6.1 Ocean Thermal Electric Conversion :
 Ocean thermal energy is the thermal energy acquired by the ocean water from the sun radiation.
 Average solar energy absorbed by the ocean is approximately
(3  10 kJ/m ) per year.
6 2

 Therefore equivalent electrical power density may available as 90 W/m2.

 The warm water (about 27C) from the upper level of ocean is used for generation of electrical
energy.
 Mainly there are two methods by which ocean thermal energy can be converted into electrical energy
firstly open cycle OTEC and secondly closed cycle OTEC.
 In the former case, warm water is directly utilised and converted into steam and then steam turbine
converts it into mechanical energy and then generator converts it into electrical energy.
 In the latter case, warm water gives heat to working fluid which has low boiling point such as NH 3
or propane. Then special type of turbines are used by which mechanical output is obtained and further
generator converts it into electrical energy.
 In both the cases cold water (about 10C) from bottom of ocean is used for condenser.
(a) Open cycle OTEC power plant :
 Fig. 6.6.1(a) indicates the schematic arrangement of open cycle OTEC power plant.

Fig. 6.6.1(a) : Open cycle OTEC power plant

 In this type of power plant, warm water from the surface of ocean (about 27C) is taken into evaporator
(2) which is maintained at vacuum pressure with the help of vacuum pump (1).
 Vacuum pressure helps to decrease in the boiling point of water due to which more steam is generated.
 Generated steam from the evaporator (2) is then admitted to special steam turbine (3) which converts
thermal energy into mechanical energy.
 This mechanical energy is further given to generator/ alternator which converts mechanical energy into
electrical energy.
 After conversion of thermal energy into mechanical energy, steam from the turbine is passed through
the boiler and it is contented.
 The cold water required for condensation is drawn from the deep ocean whose temperature is about
10C.
Limitations of open cycle OTEC power plant :
 Cost of power plant is very large.
 Transmission of electrical energy from off shore to land is very difficult and costly.
 Large size of components are required, there for small output is obtained (maximum 100 MW).
 Corrosion of metallic part takes place due to saline water.
 Salts get deposited in pipes causes increase in maintenance.
 Very low thermal efficiency (about 6 to 7%).
(b) Closed cycle OTEC power plant :
 Fig. 6.6.1(b) shows the schematic arrangement of closed cycle OTEC type power plant.
 In this power plant, warm water is drawn from the surface of ocean.
 A low boiling point fluid such as Ammonia (NH3), Freon or Butane is used in closed cycle which draws
the heat from ocean water in heat exchanger.

Fig. 6.6.1(b) : Closed cycle OTEC power plant

 Working fluid is converted into vapour in heat exchanger.

 Then it is passed through vapour turbine which converts thermal energy into mechanical energy.
 Further this mechanical energy is converted into electrical energy by alternator.
 Condenser converts the working vapour fluid into liquid. For this purpose the cold water is drawn from
the deep ocean.
 This working fluid is again pass to heat exchanger and this cycle is continuous in closed loop.
6.6.2 Energy from Tides :
Tide :
 It is a frequent rise and fall of the water level of the sea.
 Tides oceans due to the attraction of sea water by the moon.
 When these tides are utilised to produce electrical power then it is known as tidal power.
 The water above the mean sea level is known as flood tide and the water below the mean level is
know as ebb tide.
 In tidal power plant, a dam is constructed in such a way that a basin gets separated from sea and a
difference in the water level is created between them.
 The constructed basin is filled during flood and emptied during ebb.
 While doing this, water is passed through sluice and turbine which produces electrical energy along
with the generator.
Types of tidal power plant :
 Tidal power plants are mainly classified into two categories :
(a) Single basin system.
(1) One way cycle.
(2) Two way cycle
(3) Two way cycle with pump storage.
(b) Double basin system.
(a) Simple double basin

(b) Double basin with pumping.

(a) Single basin system :

(i) Single basin one way system :
 Fig. 6.6.2(a) shows the schematic arrangement of single basin one way tidal power plant.
 This is the simplest form of tidal power plant in which basin is filled with sea water
during flood period.
 In the ebb period water from basin flows towards sea.
 While passing this water toward sea, it is passed through turbine which generates
mechanical power.
 Fig. 6.6.2(a) : Single basin one way tidal power plant

 Further it is converted into electrical energy with the help of generator.

 In single basin one way cycle power is available for short duration only i.e. during ebb
period only.
(ii) Single basin two way cycle :
 In single basin two way cycle, power generation takes place during both the tides i.e.
during flood tide as well as ebb tide.
 The power generation capacity is more than that of single basin one way cycle plant
though is nature is intermittent.

Fig. 6.6.2(b) : Single basin two way tidal power generation

 The main difficulty with this system is that turbine rotates in opposite direction in flood
tide period and in ebb tide period.
 To overcome this difficulty dual rotation generators are used.

(iii) Two way cycle with pumped storage :

 This system is similar that of single basin two way cycle.

 Only additional pumping facility is provided which creates difference in water level
between sea and basin at any time of the tide.
 Power generation is more than the previous two system.
 Fig. 6.6.2(c) : Two way cycle with pumped storage

(b) Double basin system :

 In double basin arrangement, the turbine is set up between the two basins as shown in Fig. 6.6.3.
 One basin is intermittently filled by the flood tide and other is intermittently drained by the ebb tide.
 The main advantage of this system is that small but continuous power is made available with this
system.

Fig. 6.6.3 : Double basin system for power generation

Selection of site for tidal power plant :
Following factors are to be considered while selecting the site for tidal power plant.
 The site selected should be such that it has average tide range of 4 to 6 m or more.
 The width of the estuary month should be sufficiently large due to which water can be stored and
utilized for power generation.
 Site selected should have a minimum cost of barrage with maximum storage volume.
 Site selected should be such a way that it should have protection against waves action and stroms.
 Site selected should not create the disturbance interruption to the shipping traffic.
Advantages and disadvantages of tidal power plants :
(a) Following are the advantages of tidal power plants :
 It is free from pollution as there is no utilisation of any fuel.
 Exploitation of tidal energy is not possible.
 It is much superior to hydro power plants as it totally independent on rain fall. Therefore there is
certainty of power at all the time.
 These power plants can easily meet the peak load demand if used with combination of thermal and
hydro power stations.
 There is no generation of any unhealthy products such as radio active waste, gases, etc.
(b) Following are the disadvantages of tidal power plant :
 Artifical site cannot be created for tidal power plants.
 Sites selected are always away from the load centre. Therefore it increases the cost of transmission of
electrical energy.
 The supply of power is intermittent and which depends on the timings of tides.
 Capital cost is very high as compared to conventional power plants as dam has to be created.
 Sedimentation and siltration of the basin are some of the added problems.

MHD generation

 The MHD generation or, also known as magneto hydrodynamic power generation is a
direct energy conversion system which converts the heat energy directly into electrical energy,
without any intermediate mechanical energy conversion, as opposed to the case in all other
power generating plants. Therefore, in this process, substantial fuel economy can be achieved
due to the elimination of the link process of producing mechanical energy and then again
converting it to electrical energy.

 Principle of MHD Generation
 The principal of MHD power generation is very simple and is based on Faraday’s law of
electromagnetic induction, which states that when a conductor and a magnetic field moves
relative to each other, then voltage is induced in the conductor, which results in flow of current
across the terminals.
As the name implies, the magneto hydro dynamics generator shown in the figure below, is
concerned with the flow of a conducting fluid in the presence of magnetic and electric fields.
In conventional generator or alternator, the conductor consists of copper windings or
 stripswhile in an MHD generator the hot ionized gas or conducting fluid replaces the solid
conductor.
 A pressurized, electrically conducting fluid flows through a transverse magnetic field in a
channel or duct. Pair of electrodes are located on the channel walls at right angle to the magnetic
field and connected through an external circuit to deliver power to a load connected to it.
Electrodes in the MHD generator perform the same function as brushes in a conventional DC
generator. The MHD generator develops DC power and the conversion to AC is done using an
inverter.
 The power generated per unit length by MHD generator is approximately given by,


Where, u is the fluid velocity, B is the magnetic flux density, σ is the electrical conductivity of
conducting fluid and P is the density of the fluid.
MHD Cycles and Working Fluids
The MHD cycles can be of two types, namely
1. Open Cycle MHD.
2. Closed Cycle MHD.
The detailed account of the types of MHD cycles and the working fluids used, are given below.

Open Cycle MHD System

In open cycle MHD system, atmospheric air at very high temperature and pressure is passed through the
strong magnetic field. Coal is first processed and burnet in the combustor at a high temperature of about
2700oC and pressure about 12 ATP with pre-heated air from the plasma. Then a seeding material such as
potassium carbonate is injected to the plasma to increase the electrical conductivity. The resulting mixture
having an electrical conductivity of about 10 Siemens/m is expanded through a nozzle, so as to have a high
velocity and then passed through the magnetic field of MHD generator. During the expansion of the gas at
high temperature, the positive and negative ions move to the electrodes and thus constitute an electric
current. The gas is then made to exhaust through the generator. Since the same air cannot be reused again
hence it forms an open cycle and thus is named as open cycle MHD.

Closed Cycle MHD System

As the name suggests the working fluid in a closed cycle MHD is circulated in a closed loop. Hence, in this
case inert gas or liquid metal is used as the working fluid to transfer the heat. The liquid metal has typically
the advantage of high electrical conductivity, hence the heat provided by the combustion material need not
be too high. Contrary to the open loop system there is no inlet and outlet for the atmospheric air. Hence,
the process is simplified to a great extent, as the same fluid is circulated time and again for effective heat
transfer.
Advantages of MHD Generation

The advantages of MHD generation over the other conventional methods of generation are given below.

1. Here only working fluid is circulated, and there are no moving mechanical parts. This
reduces the mechanical losses to nil and makes the operation more dependable.
2. The temperature of working fluid is maintained by the walls of MHD.
3. It has the ability to reach full power level almost directly.
4. The price of MHD generators is much lower than conventional generators.
5. MHD has very high efficiency, which is higher than most of the other conventional or non-
conventional method of generation.

Carbon Credit

The burning of fossil fuels is a major source of greenhouse gas emissions,[8][9] especially for power,
cement, steel, textile, fertilizer and many other industries which rely on fossil fuels (coal, electricity derived
from coal, natural gas and oil). The major greenhouse gases emitted by these industries are carbon
dioxide, methane, nitrous oxide, hydrofluorocarbons (HFCs), etc., all of which increase the atmosphere's
ability to trap infrared energy and thus affect the climate.

The concept of carbon credits came into existence as a result of increasing awareness of the need for
controlling emissions. The IPCC (Intergovernmental Panel on Climate Change) has observed[10] that:
Policies that provide a real or implicit price of carbon could create incentives for producers and consumers
to significantly invest in low-GHG products, technologies and processes. Such policies could include
economic instruments, government funding and regulation,

while noting that a tradable permit system is one of the policy instruments that has been shown to be
environmentally effective in the industrial sector, as long as there are reasonable levels of predictability
over the initial allocation mechanism and long-term price.

A carbon credit is a permit that allows the company that holds it to emit a certain amount of carbon dioxide
or other greenhouse gases. One credit permits the emission of a mass equal to one ton of carbon dioxide.
The ultimate goal of carbon credits is to reduce the emission of greenhouse gases into the atmosphere.

The Kyoto Protocol is a legally binding agreement under which industrialized countries will reduce their
collective emissions of greenhouse gases by 5.2% compared to the year 1990 (but note that, compared to
the emissions levels that would be expected by 2010 without the Protocol, this target represents a 29% cut).
The goal is to lower overall emissions from six greenhouse gases - carbon dioxide, methane, nitrous oxide,
sulfur hexafluoride, HFCs, and PFCs - calculated as an average over the five-year period of 2008-12

Carbon Credits
A “carbon credit” is a tradable certificate. More specifically, it is a permit that gives the holder the right
to emit, over a certain period, carbon dioxide or other greenhouse gases (e.g. methane, nitrous oxide or
hydrofluorocarbons).

The carbon credit limits the emission to one tonne of carbon dioxide or the mass of another greenhouse
gas with a carbon dioxide equivalent (tCO2e) corresponding to one tonne of carbon dioxide. In other words,
1 carbon credit corresponds to 1 metric tonne of carbon dioxide prevented from entering the atmosphere.
Origins of Carbon Credits
Carbon Credits were created as an answer to the need for controlling emissions (global carbon-dioxide
emissions in 2016 were about 36 billion metric tonnes), and as an attempt to reduce the emission of
greenhouse and harmful gases coming from industrial activity (industries as power, steel, textile, fertilizer,
etc. using all fossil fuels – such as coal, oil and natural gas – that are the major responsible for greenhouse
gas emissions).
The Carbon Credits system was officially formalised in the Kyoto Protocol, while the mechanisms that
regulate the Carbon Credits market were established in the Marrakesh Accords.

Who Issues Carbon Credits

The Kyoto Protocol establishes the quotas of greenhouse gases (denominated in individual units) that
each developed country can emit. These so-called Assigned Amount Units (AAUs) correspond to an
allowance to emit one metric tonne of CO2 or equivalent greenhouse gas. Each country then divides its
quotas assigning them to local businesses and organizations, setting in this way a limit on the emissions of
CO2 for each of them.
Any government or other regulating body willing to limit the carbon dioxide emissions can issue Carbon
Credits. Carbon trading follows the principle of an emissions trading (or cap and trade) approach, i.e. a
market-based approach in which economic incentives are given to encourage reductions in the emissions
of pollutants. One of the positive aspects of this approach is that organisations can decide to use the
emissions trading schemes in a flexible way, finding the best option to meet policy targets.
Who Buys Carbon Credits
Carbon Credits are bought, on a voluntary basis, by any country or company interested in lowering its
carbon footprint.
The Kyoto Protocol divides countries into two groups according to the level of their economy: industrialised
and developing economies. The first group operates in an emissions trading market, assigning to each
country a certain emissions standard to meet. If, for example, a country emits less than its target amount of
CO2, then it can sell the surplus credits to other countries that do not meet their emissions level goals
established by the Kyoto Protocol. This buying and selling of Carbon Credits is regulated by a legal contract
called ERPA (Emission Reduction Purchase Agreement). There is also another mechanism, called Clean
Development Mechanism and specifically addressed to developing countries, that issues Carbon Credits
for supporting sustainable development initiatives (those Carbon Credits are called Certified Emission
Reduction, or CER).

How Do Carbon Credits Work

To better understand how Carbon Credits work, let’s consider this example:
Company A emits less than its target amount of CO2; this means that Company A has a surplus of Carbon
Credits. Company B, on the other hand, emits more than its target amount of hydrocarbon, so either
Company B pays a fine or tries to buy Carbon Credits from another company. At this point, Company A
and Company B get to an agreement and trade Carbon Credits: Company A sells its surplus to Company
B, getting money and a positive image feedback, while Company B buying Carbon Credits from Company
A avoids paying a fine.
Buyers and sellers can also use an exchange platform to trade, which is like a stock exchange for carbon
credits. In some cases though, it can happen that it is more economic to pay a fine than to buy Carbon

Credits due to their high price.

How Much is a Carbon Credit
Carbon Credits do not have the same value. This is mainly because the Carbon Credits market, like any
other voluntary market, doesn’t have a central authority that dictates the rules or the approach to pricing
them. Carbon Credits price can be determined by the market dynamics (primarily driven by supply and
demand), the costs of a specific project (the Fairtrade Carbon Credit pricing model offers an excellent
example in that sense) or the sponsor supporting the carbon project (i.e. a business initiative that receives
funding because of the cut the emission of greenhouse gases). In general, voluntary units tend to have less
value than the unit sold through a regulated system (as the Clean Development Mechanism, for example).
Currently, the price for CO2 European Emission Allowances is €20.75 (first time in a decade to breach the
threshold of €20) and projections suggest that EU carbon price could reach an average of €35-€40 per tonne
in the 2019-2023 period, reflecting a faster switch from less efficient and more polluting coal plants to
cleaner gas-fired facilities and a reduction of greenhouse gas emissions.
Where do the Carbon Credits Go
Carbon Credits are stirring up a lot of interest. Among the private sector, there is a growing awareness of
the true value and the real importance of natural capital (a stable climate, a prosperous ecosystem, use or
renewable energies, etc.) and companies are increasingly adopting tools or technologies to lessen the impact
on the environment and be more eco-friendly.
As it always happens, there are those who see positively the acceleration of the carbon market after years
of slow growth, and those who openly criticise them, saying that carbon trading is a false solution to the
climate change.
Carbon offsettings plans are getting a relevant position also in the political agenda of some countries,
not without contrasts. One of the critiques addressed to the Carbon Credits system is the lack of
transparency. In other words, where do the Carbon Credits go? Is just a whole scam that takes advantage
of the will of those companies ready to pay (sometimes great sums of money) to offset their emissions of
hydrocarbons or does the system really work?
Over the last years, many initiatives were launched to make the Carbon Credits system more transparent
and many companies were born offering Carbon Credits for sale to both individuals and businesses: Cool
Effect (that informs you about the projects funded with your Carbon Credits), Native Energy, Terra
Pass, Stand for Trees, Carbon Funds, etc.