Power Min revises biomass co-firing policy to enable purchase of pellets

The power ministry on Tuesday said it has revised the biomass co-firing policy to enable the purchase of biomass pellets by power plants.

The decision would encourage farmers, entrepreneurs as well as thermal power utilities to strive to establish a sustainable biomass supply chain, the ministry said in a statement.

"Ministry of Power (MoP) has decided to benchmark the prices of biomass pellets used for co-firing in Thermal Power Plants (TPPs). Ministry of Power has revised biomass Co-Firing Policy for enabling the purchase of biomass pellets by Power Plants at benchmark price," it said.

The benchmarked price shall take into account the business viability, impact on electricity tariff and efficient and faster pellet procurement by power utilities. Price benchmarking of pellets will enable the TPPs as well as pellet vendors to establish a sustainable supply mechanism for co-firing of pellets.

The benchmarked price, as finalised by the committee under CEA, will be effective from January 1, 2024, the ministry said.

Union Power Minister RK Singh said that co-firing biomass in coal-based power plants is a key policy of the government towards energy security, reduced use of fossil fuels and at the same time increased income of farmers. The revised policy shall help in achieving these goals faster.

The government's biomass policy mandates co-firing of biomass with coal in TPPs.

Power Secretary Alok Kumar said that the decision would encourage farmers, entrepreneurs and thermal power utilities to strive to establish a sustainable biomass ecosystem, achieve the targets for co-firing, reduce stubble burning and help to ensure a cleaner and greener future for the citizens of India.