Bihar is one of the poorest states in India. Mains electric power is available erratically and black-outs can last for days. Rainfall is high because of the monsoon, but there is frequent flooding. In the dry season, it is possible to pump water from boreholes to irrigate crops, but reliable electricity is needed to do this. Saran Renewable Energy (SRE) was set up by a family-owned grain-trading business, because of concern about the lack of electricity in Bihar. SRE has built a plant to gasify biomass bought from local farmers, and use the gas to generate electricity, which is sold locally, mainly to small businesses.

• Gasification plant uses a dual-fuel generator, to supply 128 kW of electricity at 240 V.
• Most biomass used is ‘dhaincha’, a local woody plant which grows on uncultivated waterlogged land, or can be added in the existing crop rotation during the monsoon.
• Two 3 kV transmission lines, each 1.25 km long, link to the customers.
• Most of the customers previously used diesel generators for businesses including grain mills, cold stores, a sawmill and welding. Some customers are ‘generators’ who sell electricity for lighting or charge batteries for other customers.
• A school and clinic are also supplied.
• The gasification plant runs irrigation pumps connected to the transmission lines and a pipe to supply to farms close to the plant.
  
• Plant runs for 11 hours per day. Currently runs at about 35% capacity and supplies about 220 MWh per year.
• Allowing for 10-15% use of diesel for ignition, the plant saves an estimated 0.35 litres of diesel per kWh, or about 77,000 litres of diesel per year.
• Greenhouse gas emissions reduced by about 206 tonnes/year CO2.
• Farmers are paid about US$0.04 per kg for supplying biomass to the plant.
• Customers are charged about US$0.15/kWh for electricity, compared with about US$0.28/kWh for diesel generators and US$0.12/kWh for (unreliable) grid supply.
• Plant cost about US$170,000 to construct, financed by investment from the directors, a bank loan and an anticipated government subsidy (currently financed by directors).
• Capital cost expected to be recovered in about six years.

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