Power Producers Face Biomass Challenges Amid Co-firing Goals

The Association of Power Producers highlighted the challenges faced by thermal power plants in meeting biomass co-firing targets due to limited availability and technical issues, not lack of effort. The APP advocates for policy relaxation to mitigate financial stress and support compliance improvement as the market matures.

The Association of Power Producers (APP) has attributed the failure of several thermal power plants to meet biomass co-firing targets for FY 2024-25 to limited biomass availability and technical constraints rather than a lack of intent by power generators.

This statement follows a notice from the Commission for Air Quality Management (CAQM) which issued show-cause notices to six thermal power stations located within a 300-km radius of Delhi. The CAQM also proposed an environmental compensation of Rs 61.85 crore for the reported shortfalls.

The APP emphasized challenges in the domestic market for torrefied biomass pellets, highlighting insufficient supplier capacity and high rejection rates due to moisture or volatile matter. Echoing this, Talwandi Sabo Power Ltd (TSPL) in Punjab struggled with procurement but made progress with a local biomass facility, exemplifying potential improvements as the value chain develops.

(With inputs from agencies.)