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Revised Policy for Biomass Utilisation for Power Generation

The Revised Biomass Policy in India has introduced significant changes to promote the utilization of biomass for power generation. Here are the key modifications:

1. Mandatory Co-Firing:
   • The revised policy mandates that Thermal Power Plants (TPPs) must carry out 5% biomass co-firing starting from the fiscal year 2024-25.
   • This obligation will further increase to 7% from the fiscal year 2025-26.
   • Co-firing involves blending biomass pellets with coal during combustion, contributing to cleaner energy production.
2. Initiatives to Ensure Availability:
   • The government has taken several initiatives to ensure the availability and procurement of biomass pellets for co-firing in TPPs:
     • Finance Assistance Schemes by MNRE and CPCB for biomass pellet manufacturing units.
     • Reserve Bank of India (RBI) approval for ‘Biomass pellet manufacturing’ as an eligible activity under Priority Sector Lending (PSL).
     • Creation of a Procurement Provision of Biomass Category on the GeM portal.
     • Issuance of a Revised Model long-term contract for Biomass supply by the Ministry of Power.
     • Establishment of a vendor database listed on the SAMARTH website.
     • Awareness programs and advertisement campaigns.
     • Provision of Udyam Aadhaar on the National Single Window System.
     • Bankable Model Project Report for Biomass Pellet Plants.
3. Types of Agro Residues:
   • The policy addendum dated 03-05-2023 specifies various types of agro residues suitable for making biomass pellets. These include:
     • Stubble/straw/stalk/husk from crops like Paddy, Soya, Arhar, Gwar, Cotton, Gram, Jawar, Bajra, Moong, Mustard, Sesame, Til, Maize, Sunflower, Jute, Coffee, etc.
     • Groundnut Shell, Coconut Shell, Castor Seed Shell, etc.
     • Pellets made from Bamboo and its by-products, horticulture waste, and other biomass materials.
4. Current Usage:
   • Approximately 1,64,976 Metric Tonnes of agri residues-based biomass have been co-fired in 47 coal-based thermal power plants until May 2023.

These modifications aim to enhance the use of renewable energy sources and reduce environmental impact. 🌱🔥