MoP revises biomass co-firing policy, enables purchase of biomass pellets at benchmark price

The Ministry of Power (MoP) announced that it 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 manufacturers, farmers, bankers amongst many others.The benchmarked price shall take into account the business viability, impact on electricity tariff and efficient and faster pellet procurement by power utilities.The benchmarked price as finalised by the committee under CEA, will be effective from January 1, 2024.