HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Limited supply, technical hurdles hit biomass co-firing targets at thermal plants: APP
Dec-26-2025

The Association of Power Producers (APP) has said several thermal power plants were unable to meet their biomass co-firing targets for the financial year 2024-25 (FY25), mainly due to limited biomass availability and technical difficulties at the plants. It emphasized that the shortfall was not due to a lack of intent or effort by power generators. This statement comes after the Commission for Air Quality Management (CAQM) issued show-cause notice to six major coal-based thermal power plants operating within a 300-km radius of Delhi for failing to comply with mandatory biomass co-firing norms and proposed environmental compensation of Rs 61.85 crore for the reported shortfall.  

The Association noted that the domestic market for torrefied biomass pellets -- mandated for plants equipped with ball and tube mills -- remains significantly underdeveloped, causing issues like insufficient supplier capacity, high rejection rates due to moisture or volatile matter, and the absence of OEM-validated solutions.

It noted that penalizing generators for issues beyond their reasonable control -- under the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 --can create severe financial distress without accelerating adoption. Therefore, it urged the government to consider available provisions for relaxation in cases of genuine difficulty, including a one-time waiver of environmental compensation for FY25 or allowing carry-forward of compliance to subsequent years.


  RELATED NEWS >>