NTPC invites bids to procure agro residue based fuel

State-run power giant NTPC has invited bids for procuring 1,000 metric tonne of agro residue based fuel per day as part of the eco-friendly drive in the NCR.
The bids are for 2,650 MW Dadri power plant in Uttar Pradesh. The initiative will provide farmers with an alternate to burning crop residues, a major contributor to pollution, an NTPC spokesperson said.
The tender will be for two years with a capping price of Rs 5,500 per metric tonne for agro residue based pellets and Rs 6,600 per tonne for pellets or briquettes of torrefied agro residue.
To attract startups, NTPC has allowed participation of bidders without any prior experience.

The company has broken up the total demand into smaller lots of 20 metric tonne per day. A bidder can bid for any number of lots but not exceeding 12 lots to encourage wider participation.
If NTPC is able to attract sufficient bidders for the quantity required, it can open doors for using agro residue in power plants across the country.

This can dramatically increase the share of renewable energy.
The initiative would not only discourage infield crop burning, but also create large-scale rural employment opportunities in agro residue supply chain and its processing.
Open burning of biomass has been identified as one of the major causes of poor air quality in northern India, especially in and around New Delhi.

Understanding the gravity of the problem, NTPC initiated a programme to use agro residue based fuel in power plants along with coal. Subsequently, the government has also come up with an advisory to fire 5-10 per cent of agro residue based fuel in thermal power plants.
As against solar and wind, biomass power can be scheduled as per load demand, eliminating indirect costs to handle variability of renewables.