Biomass support programme launched

The Indian Ministry of New and Renewable Energy has announced a programme to support biomass CHP plants at sugar mills and other industrial sites. It will provide Central Financial Assistance (CFA) for newly installed boilers or turbines that are fuelled with biomass fuels such as bagasse, crop residues or wood waste. The CFA will be paid in one instalment after the plant started operations successfully at a rate of EUR 31,215/MW (INR 2.5 million/MW) for bagasse CHP plants and EUR 62,419/MW (INR 5 million/MW) for other types of biomass. For bagasse CHP plants the CFA will be based on the surplus exportable power as mentioned in a Power Purchase Agreement (PPA). For other types of biomass, the CFA will be calculated on the basis of the installed capacity. Hence, the non-bagasse fired power plants get higher incentives. The awarded projects must be operational within 24 months.

Picture Credit: Sugarcane bagasse, public domain

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