8 months ago
Thermal Plants Struggle with Biomass Targets
Thermal power plants in India are having a hard time meeting their goals for using biomass pellets mixed with coal.
This is because there aren't enough pellets available, and they are very expensive.
The government has set a rule that 5% of the fuel used in power plants should be biomass pellets, which are made from things like food scraps and agricultural waste.
These pellets help reduce pollution and are better for the environment.
Some plants, like Talwandi Sabo Power Ltd, have improved by setting up their own biomass facilities.
The Damodar Valley Corporation (DVC) also tried to buy pellets but faced problems with supply and high prices.
They are now trying to encourage local entrepreneurs to make more pellets to meet their needs.
The plants are also looking into other green energy sources like solar and hydel power.
Thermal power plants missed biomass co-firing targets in FY 2024–25 due to supply and technical issues.
CAQM proposed a Rs 61.85 crore penalty for six plants near Delhi.
Domestic market for torrefied biomass pellets is underdeveloped, causing supply constraints.
Talwandi Sabo Power Ltd improved co-firing to 5.07% year-to-date by November 30, 2025, after setting up a local biomass facility.
DVC faces challenges in meeting biomass co-firing mandates due to supply chain issues and high pellet prices.
- Who
- Association of Power Producers (APP), Damodar Valley Corporation (DVC), and thermal power plants
- What
- Inability to meet biomass co-firing targets in FY 2024–25
- Where
- Thermal power plants within a 300-km radius of Delhi, particularly Punjab and DVC units in Mejia, Andal, Raghunathpur, Koderma, and Bokaro
- When
- FY 2024–25, with updates in FY 2026
- Why
- Limited biomass availability, technical constraints, and supply chain issues
Key facts
- Organization
- Association of Power Producers (APP) and Damodar Valley Corporation (DVC)
- Issue
- Biomass co-firing shortfall in FY 2024–25
- Cause
- Limited biomass availability and technical constraints
- Penalty Proposed
- Rs 61.85 crore environmental compensation
- Example Plant
- Talwandi Sabo Power Ltd (TSPL)
- TSPL's Co-firing Achievement
- 5.07% year-to-date by November 30, 2025
- APP's Request
- Relaxation or waiver of environmental compensation
- DVC's Annual Biomass Requirement
- 2.33 lakh MT of agro-residue biomass pellets
- DVC's Procurement Tenders
- 51,100 MT for Mejia, Andal, Raghunathpur, Koderma; 29,200 MT for Bokaro
- DVC's Alternative Power Sources
- Pump-storage, solar, and hydel projects
Quotes
S. Suresh Kumar
Chairman, Damodar Valley Corporation
“Considering the continued difficulties, we have now stressed to motivate local entrepreneurs for gross pellet production.”
thestatesman.com
“With this, we want to restrict the procurement from Panipath, as those are highly-priced.”
thestatesman.com





