The Ministry of Power on 8th October 2021 has notified the revised policy to use biomass pellets in coal-burning thermal power plants. The minimum contract period for procurement of biomass pellets by generating utilities shall be for 7 years so as to avoid delay in awarding contracts by generating companies every year and also to build up long term supply chain.
All coal-based thermal power plants of power generation utilities with bow mill and ball & race mill shall on annual basis mandatorily use 5% blend of biomass pellet made, primarily, of agro residue along with coal with effect from one year of the date of issue of this guidelines.
The obligation shall increase to 7 percent with effect from 2 years after the date of issue of this order and thereafter.
The policy for co-firing of biomass would be in force for 25 years or until the useful life of the thermal power plant, whichever is earlier. The minimum percentage of bio-mass for co-firing will be reviewed from time to time.
