UP to announce Biomass Energy Policy 2015

Projects to get stamp duty waiver as sop

Uttar Pradesh is targetting 1,000 megawatt (mw) of biomass energy under the new UP Biomass Energy Policy 2015, which is being finalised.

The government is mulling providing 100% stamp duty on acquiring private land for setting up biomass power plant.

If such plant is set up under a joint venture with state nodal agency UP New and Renewable Energy Development Agency (NEDA), the latter would provide land as its equity share.

The draft policy is ready and now NEDA is soliciting suggestions from experts and general public before the government implements it. The policy would be effective for the next 10 years and be subject to amendments.

The dual purpose of the policy would be to meet a part of energy demand-supply gap in UP and to encourage renewable energy resources.

Biomass fuel is derived from organic material. It is renewable and sustainable source of energy to generate power. Examples of materials that make up biomass fuel are scrap lumber, bagasse, cattle dung etc.

Those eligible to set up biomass power plants under the policy includes government agencies, private companies, joint ventures, local bodies (both urban and village panchayat) etc.

Under the policy, maximum 2 acres of land per mw capacity could be acquired for setting up biomass power plant.

The state is confident there are immense opportunities to set up various capacity power plants based on variety of techniques (gasification, co-generation and combustion) by using biomass.

The government is also counting on Kamdhenu Dairy Scheme, as it is expected to generate large quantities of organic waste for combustion.

According to a TERI report, UP has potential of 3,757 mw power generation through biomass. However, to set up such projects, region wise surveys are needed to assess their actual potential.

Biomass has always been an energy source. It is renewable, widely available, carbon-neutral and has potential to provide significant employment in rural areas.

About 32% of primary energy used in India is still derived from biomass and over 70% of the country's population depends upon it for energy needs.