Biomass Policy Requires 5% Co-Firing in Thermal Power Plants by 2024-25

The Union Minister for Power and New & Renewable Energy has informed that there are 47 Thermal Power Plants which have carried out co-firing of agro residue based biomass pellets with coal. The Ministry of Power issued modification on 16.06.2023 to revise the biomass policy dated 08.10.2021 and now it mandates 5% biomass co-firing in Thermal Power Plants (TPPs) from FY 2024-25. This obligation shall increase to 7% from FY 2025-26.

The Minister informed that the Government has taken many initiatives to ensure the availability and procurement of biomass pellets for co-firing in TPPs like, Finance Assistance Schemes by MNRE and CPCB have been issued for biomass pellet manufacturing units, Reserve Bank  of India (RBI)  has approved ‘Biomass pellet manufacturing’ as an eligible activity under Priority Sector Lending (PSL), Procurement Provision of Biomass Category has been created on GeM portal, Revised Model long term contract for Biomass supply was issued by Ministry of Power, Vendor database finalized and listed on SAMARTH website, awareness programmes & Advertisement Campaign were carried out, Provision of Udyam Aadhaar on National Single Window System, Bankable Model Project Report for Biomass Pellet Plants etc.

Further, the Ministry of Power through a policy Addendum dated 03-05-2023 has indicated the various type of various agro residues such as stubble/straw/stalk/husk which are surplus and not being used as animal fodder for making the biomass pellets. This includes agro-residue obtained from crops like Paddy, Soya, Arhar, Gwar, Cotton, Gram, Jawar, Bajra, Moong, Mustard, Sesame, Til, Maize, Sunflower, Jute, Coffee, etc. as well as Groundnut Shell, Coconut Shell, Castor Seed Shell etc.

In addition, pellets made from the following agro product/crop/waste can also be used for co-firing in TPPs viz. Bamboo and its by-products, Horticulture waste such as dry leaves and trimmings obtained from maintenance & pruning of trees and plants and other biomass such as Pine Cone/Needle, Elephant Grass, Sarkanda, etc.

The Minister informed that approximately 1,64,976 Metric Tonnes of agri residues-based biomass has been co-fired in 47 coal based thermal power plants till May 2023. State-wise list of thermal power plants co-firing above biomass pellets is given below.