Power Min. revises biomass co-firing policy

The Union Minister for Power and New & Renewable Energy revealed that 47 Thermal Power Plants have implemented co-firing of agro residue-based biomass pellets along with coal.

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The Union Minister for Power and New & Renewable Energy recently revealed that 47 Thermal Power Plants have actively engaged in co-firing agro residue-based biomass pellets with coal. In response to promoting sustainable practices, the Ministry of Power issued a modification on 16th June 2023, amending the biomass policy dated 8th October 2021.

Under the revised policy, it is now compulsory for Thermal Power Plants to implement a 5% biomass co-firing capacity from the fiscal year 2024-25. This mandatory obligation is set to rise to 7% from the fiscal year 2025-26, further encouraging the utilization of renewable energy sources in power generation.

The Minister highlighted various government initiatives to ensure the availability and procurement of biomass pellets for co-firing in Thermal Power Plants (TPPs). These initiatives include financial assistance schemes by MNRE and CPCB for biomass pellet manufacturing units, RBI’s approval of biomass pellet manufacturing as a Priority Sector Lending (PSL) activity, and the creation of a Procurement Provision of Biomass Category on the GeM portal.

The Ministry of Power has also issued a revised model long-term contract for biomass supply and finalized a vendor database listed on the SAMARTH website. Awareness programs and advertisement campaigns have been conducted, and Udyam Aadhaar is now available on the National Single Window System. Additionally, a Bankable Model Project Report for Biomass Pellet Plants has been provided to further support and promote the use of biomass in TPPs.

The Ministry of Power identified several surplus agro residues that can be utilized for making biomass pellets. These residues include stubble, straw, stalk, and husk obtained from crops such as Paddy, Soya, Arhar, Gwar, Cotton, Gram, Jawar, Bajra, Moong, Mustard, Sesame, Til, Maize, Sunflower, Jute, Coffee, etc. Additionally, agro-residues like Groundnut Shell, Coconut Shell, and Castor Seed Shell were also mentioned as suitable resources for biomass pellet production.

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