The Ministry of Power (MoP) has decided to benchmark the prices of biomass pellets used for co-firing in Thermal Power Plants (TPPs). The decision comes in view of evolving market conditions for biomass pellets and requests received from stakeholders including thermal power plants, pellet manufactures, farmers, bankers etc.
The benchmarked price shall take into account the business viability, impact on electricity tariff and efficient & 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. Till the time the recommendations of the committee are implemented, the power utilities shall go for short term tenders for meeting the immediate requirement of biomass pellets for their TPPs.
According to R.K. Singh, Union Power Minister, the co-firing of 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 to increase income of farmers. Revised policy shall help in achieving these goals faster.
Explaining the decision, Alok Kumar, Secretary, Power said that the decision would encourage farmers, entrepreneurs as well as 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. So far around 1.80 Lakh MT of biomass fuel has been co-fired in 47 thermal power plants in the country totalling a capacity of 64,350 MW.
