New Delhi: In a significant move towards sustainable energy practices, the government has set the benchmark prices for biomass pellets, to be utilized in thermal power plants across the Western and Northern regions, excluding the National Capital Region (NCR).
As per the directive issued by the ministry of power, the price for biomass pellets used for co-firing in thermal power plants has been fixed after a comprehensive study by the price benchmarking committee. The decision aims to streamline the supply chain of biomass pellets and encourage the use of eco-friendly fuel, thereby promoting cleaner energy production.
For the Western Region, the benchmark price for non-torrefied biomass pellets has been set at INR 2.24 per 1000 kcal, effective from 8th November 2023, for a period of one year. These pellets must have a moisture content below 14% and a Gross Calorific Value (GCV) between 2800-4000 kcal/kg, with the price excluding GST and transportation costs at the pellet manufacturing plant site.
Similarly, for the Northern Region, excluding NCR, the benchmark price has been determined at INR 2.27/1000 kcal, under the same conditions. This initiative is part of the government’s policy to modify and enhance the co-firing of biomass in coal-based power plants in June this year.
Thermal Power Plants (TPPs) in these regions are advised to adhere to these benchmark prices and take necessary actions. This move has been approved by the Union Minister for Power and New and Renewable Energy R. K. Singh, signaling a top-down commitment to India’s energy sustainability goals.
The step is expected to foster a more robust market for biomass pellets and help stabilize the volatile raw biomass prices, ensuring a secure supply of eco-friendly fuel for India’s growing power needs.
