Recently, the Union Minister for Power and New & Renewable Energy shared some important updates on the Revised Biomass Policy during a written reply in the Rajya Sabha. It was revealed that 47 Thermal Power Plants had successfully implemented the co-firing of coal with biomass pellets derived from agro residues. Till May 2023, approximately 1,64,976 Metric Tonnes of agri residues-based biomass has been co-fired in these thermal power plants.
The Ministry of Power and Ministry of New & Renewable Energy (MNRE) are working towards the integration of agro residue-based biomass pellets into the Thermal Power Plants’ (TPPs) operations. This stratagem marks significant progress in turning the energy sector more sustainable and eco-friendly.
On June 16, 2023, the Ministry of Power issued an amendment to the biomass policy of October 8, 2021. According to the terms of the Revised Biomass Policy, Thermal Power Plants (TPPs) are required to co-fire 5% biomass starting from the fiscal year 2024-25. This co-firing obligation will increase to 7% from the fiscal year 2025-26.
Governments Interventions in Biomass Co-firing
The MNRE, in collaboration with Central Pollution Control Board (CPCB), introduced Finance Assistance Schemes to aid biomass pellet manufacturing units. The Reserve Bank of India also approved ‘Biomass pellet manufacturing’ as an eligible activity under Priority Sector Lending, thus promoting financial feasibility for such initiatives.
In terms of procurement and supply chain management, a special Procurement Provision of Biomass Category has been established on the Government e-Marketplace (GeM) portal. The Ministry of Power has also introduced a Revised Model Long-Term Contract for Biomass Supply, leading to a consistent supply chain.
In an effort to simplify administrative processes for biomass-related projects, the provision of Udyam Aadhaar was enacted on the National Single Window System. Based on the concept of self-declaration, the Udyam Aadhaar registration process allows MSMEs to register for free and receive an Udyam Aadhaar number.
Understanding Biomass Co-Firing
Biomass co-firing involves the combustion of biomass-based fuels alongside traditional fossil fuels (like coal, oil, or natural gas) within the same power plant or industrial boiler to generate energy.
Co-firing coal with biomass pellets offers multiple advantages. Not only does it help reduce carbon emissions, but it also aids in the integration of renewable energy sources with conventional ones. This approach can assist power plants in meeting environmental regulations and carbon reduction targets without major changes to infrastructure. Furthermore, co-firing utilizes agricultural and forestry residues, which might otherwise be wasted.
The Ministry of Power has identified several surplus agro residues suitable for biomass pellet production. These include crop residues, shell waste, and additional biomass sources like Bamboo by-products, horticulture waste, and other biomass materials such as Pine Cone/Needle, Elephant Grass, Sarkanda, etc.
Advancements in policies and strategies related to biomass co-firing are paving the way for a cleaner and more sustainable energy sector. From the Revised Biomass Policy to the various government interventions, these efforts are a testament to India’s dedication towards achieving a net-zero emission target.
