June 21, 2025

State-Specific Carbon Credit & REC Incentives for Biomass Users in Tamil Nadu, Karnataka, and Rajasthan

This comprehensive guide explains carbon credit and REC incentives for biomass users in Tamil Nadu, Karnataka, and Rajasthan. It covers financial benefits, biomass sourcing districts, and step-by-step procedures to register, generate, and trade environmental credits. With government-backed schemes and MNRE support, biomass producers can reduce costs and monetize green energy efforts. Ideal for renewable energy developers and investors seeking sustainable returns.

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🟢 Tamil Nadu

Carbon Credit Momentum

Tamil Nadu launched a Green Climate Fund backed by TNIFMC (~₹1,000 cr + ₹1,000 cr greenshoe) aimed at financing green projects via carbon markets
Example: A 220 MW wind project in Tuticorin received ~1.6 million credits from the Global Carbon Council globalcarboncouncil.com—showing precedent for renewable energy carbon issuance.

REC Scheme for Biomass

Biomass cogeneration qualifies for RECs under the national REC mechanism—verified via state nodal agencies
MNRE’s Biomass Programme offers Central Financial Assistance:
- ₹40 L/MW for non-bagasse cogeneration (up to ₹5 cr/project), plus support for biomass pellet plants

Procedure & Websites

Register as an RE generator via TN SNA (check TANGEDCO/TNERC portal).
Get accreditation and monitoring done per MNRE/MNRE BioURJA program.
Apply for rec and carbon credits via central bodies: REC Registry (REC issuance) and Bureau of Energy Efficiency/BEE (carbon, under CCTS or VCM).
Trade credits on power exchanges (IEX/PXIL) or carbon exchanges.

Biomass Sourcing

Common residues: rice husk, sugarcane bagasse, coconut shells—plenty in Coimbatore (rice mills), Tiruchirappalli, and Erode.
Agro-districts to explore:
- Coimbatore, Erode – rice husk, coir pith
- Tiruppur – cotton stalks
- Madurai – coconut shells and agro-residue

🟢 Karnataka

REC & Fit Tariff Support

Under KREDL, Karnataka’s 2022‑27 RE policy supports biomass projects, including GOs, fee structures, and commissioned plant lists
Central grants via MNRE (same ₹40 L/MW + pellet plant support).
Feed-in Tariff: INR 6.75/kWh for biomass projects

Carbon Credit Opportunities

Large biomass and CBG (compressed biogas) plants in Karnataka can generate carbon credits—potentially 3,000–3,500 credits annually per 1 TPD CBG
Karnataka also hosts numerous carbon credit developers (e.g., Grow Billion Trees)

Procedure & Websites

Apply via KREDL portal for biomass power or pellet project.
Register and get REC issued via REC registry.
For carbon credits: register to CCTS (administered by BEE); ensure MRV and accreditation through BEE processes
Sell electricity via captive/group-captive model + trade RECs via exchanges.

Biomass Districts & Crops

Uttara Kannada – forest biomass availability
Mandya, Mysore, Hassan – rice husk, groundnut shells, sugarcane bagasse.

🟢 Rajasthan

Integrated Clean Energy & RIPS 2024

Rajasthan’s Integrated Clean Energy Policy 2024 and RIPS 2024 offer fiscal incentives:
- 100% electricity duty waiver for 7 years
- 75% stamp duty exemption & land conversion rebates
- 100% mandi/market fee reimbursement
- PCB fee waivers, wheeling & transmission exemptions
Biomass & waste-to-energy projects also qualify for subsidized land, capital assistance, and PCB waivers

REC & Carbon Credit Context

Biomass projects are qualified RE generators—eligible for RECs.
Rajasthan also under the national CCTS and Green Credit Program

Procedure & Websites

Apply through Rajasthan’s Energy Department / Finance Portal (for RIPS).
Register project as RE generator → get REC.
Accreditation for carbon credits under CCTS (BEE).
Sell power + trade credits on power or carbon exchanges.

Biomass Sourcing

Chittorgarh, Hanumangarh – abundant wheat/rice straw and mustard straw.
Baran, Alwar – agro-residue like cotton stalks; ideal for pellet units.

📌 Summary Table

State	REC Incentives	Carbon Credit Opportunities	Biomass Districts (Examples)
Tamil Nadu	REC via TN SNA; MNRE CFA ₹40 L/MW	Green Fund; voluntary & compliance credits	Coimbatore, Erode, Tiruppur, Madurai
Karnataka	REC via KREDL; FiT ₹6.75/kWh	CBG credits; numerous carbon firms present	Uttara Kannada, Mandya, Mysore
Rajasthan	REC via policy; duty/stamp exemptions	CCTS credit under energy sector	Chittorgarh, Hanumangarh, Alwar

⚙️ Common Application Steps

Project feasibility study (tech + MRV baseline).
Apply to State Nodal Agency for biomass power or pellet plant.
Register as RE generator → accreditation → REC issuance via REC registry.
Optionally register for carbon credits via CCTS/BEE or voluntary platforms (VCS, GoldStandard).
Trade credits on IEX/PXIL (RECs) or commodity/carbon exchanges (carbon credits).

🔗 Central Government & National Agencies

MNRE – Ministry of New and Renewable Energy
🔗 www.mnre.gov.in
REC Registry India (Renewable Energy Certificates)
🔗 www.recregistryindia.nic.in
BEE – Bureau of Energy Efficiency (for CCTS/Carbon Credits)
🔗 www.beeindia.gov.in
IEX – Indian Energy Exchange
🔗 www.iexindia.com
PXIL – Power Exchange India Ltd
🔗 www.powerexindia.com

🟢 Tamil Nadu

TANGEDCO – Tamil Nadu Generation and Distribution Corporation
🔗 www.tangedco.org
TNERC – Tamil Nadu Electricity Regulatory Commission
🔗 www.tnerc.tn.gov.in
TNIFMC – Tamil Nadu Infrastructure Fund Management Corporation
🔗 www.tnifmc.com

🟢 Karnataka

KREDL – Karnataka Renewable Energy Development Ltd
🔗 kredl.karnataka.gov.in
KBB – Karnataka Bioenergy Development Board
🔗 kbb.karnataka.gov.in

🟢 Rajasthan

Rajasthan Finance Department (RIPS Scheme Info)
🔗 finance.rajasthan.gov.in
Invest Rajasthan Portal (Clean Energy Policies)
🔗 energy.rajasthan.gov.in

🌍 Carbon & Climate Action Platforms

Global Carbon Council
🔗 www.globalcarboncouncil.com
Proclime (Carbon Program Support)
🔗 www.proclime.world
Grow Billion Trees (Carbon Offset Developer)
🔗 www.growbilliontrees.com
Task 37 – IEA Bioenergy (CBG and Biomass Insights)
🔗 task37.ieabioenergy.com
IFMR Lead – Climate Finance Research
🔗 www.ifmrlead.org

⚠️ Disclaimer

This summary is for informational purposes only. Policies may change—always verify current rules via official state nodal agency portals (e.g., TNERC, KREDL, Rajasthan Energy Dept.). Consult legal/financial experts before project investment.