Biogas, BioCNG and Bioenergy form an essential part of the government’s waste-to-energy program. As part of the National Bioenergy Programme, they play a pivotal role in the transition towards renewable energy. These forms of energy are derived from different types of wastes including urban, industrial, and agricultural.
Waste-to-Energy Program
The Indian government recently laid out guidelines for its waste-to-energy program. The scheme is a constituent of the wider National Bioenergy Programme and aims to encourage companies to produce biogas, bioCNG and electricity from waste and residues. The government plans to provide financial assistance to project developers, while implementing agencies and inspection firms will be paid service charges for commissioning waste-to-energy plants.
Implementing Agency – Indian Renewable Energy Development Agency (IREDA)
IREDA has been designated as the implementing agency for the program. With its role, it will be responsible for processing applications, implementing and monitoring performance of the plants. This service will attract a charge of 1% of the Central Financial Assistance (CFA).
Financial Assistance for Biogas Production
Under the program, the government will grant financial assistance of Rs 75 lakh per MW for new biogas plants and Rs 50 lakh per MW for existing units. The CFA eligibility is 20% higher for waste-to-energy plants set up in special category states.
Understanding the National Bioenergy Programme
The National Bioenergy Programme, notified by the Ministry of New and Renewable Energy (MNRE), includes sub-schemes such as the Waste to Energy Programme, Biomass Programme and Biogas Programme. These initiatives aim at promoting the use of renewable energy resources like biomass and biogas.
What is Biogas and BioCNG?
Biogas, primarily composed of hydrocarbon, is a form of energy produced through a biochemical process. The main constituent of biogas is methane gas. On the other hand, Bio-CNG, a renewable fuel, is obtained by purifying biogas. It is similar to natural gas and is considered cleaner than fuels such as petrol and diesel.
Benefits of Bio Energy
Bioenergy offers several benefits including pollution-free cities, effective handling of organic waste and healthier living conditions for women who won’t be exposed to harmful indoor smoke. Moreover, biogas can significantly transform the energy dependence of rural and agricultural communities on non-renewable sources.
Government’s Initiatives for Promoting Biogas & Waste Management
To promote green fuels, the Indian government and Niti Aayog have outlined roadmaps that include the SATAT Scheme for biogas. For waste management, initiatives like the National Dashboard on Elimination of Single Use Plastic, Plastic Waste Management Project and Solid Waste Management Rules, 2016 have been implemented.
About IREDA
IREDA is a mini ratna company under the Ministry of New and Renewable Energy (MNRE) set up in 1987. It is a specialized non-banking finance agency for the renewable energy sector and plays a key role in renewable energy project financing.