REVISED POLICY OF MINISTRY OF POWER FOR BIOMASS UTILIZATION FOR POWER GENERATION THROUGH CO-FIRING IN COAL BASED POWER PLANTS
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The current availability of biomass in India is estimated at about 750 million metric tonnes per year. The estimated surplus biomass availability is at about 230 million metric tonnes per annum covering agricultural residues.
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Ministry of Power (MOP) vide its policy dated 17-11-2017 on biomass utilization for power generation had advised that all fluidized bed and pulverized coal units (coal based thermal power plants) except those having ball and tube mill, of power generation utilities, public or private, located in India, to use 5-10% blend of biomass pellets made, primarily, of agro residue along with coal after assessing the technical feasibility, viz. safety aspect etc.
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In order to further promote use of biomass pellets in coal based thermal power plants, the above Policy is further modified. The modifications in the above Policy are as under:
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All coal based thermal power plants of power generation utilities with bowl mill, shall on annual basis mandatorily use 5 percent blend of biomass pellets made, primarily, of agro residue along with coal with effect from one year of the date of issue of this guideline. The obligation shall increase to 7 percent with effect from two years after the date of issue of this order and thereafter.
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All coal based thermal power plants of power generation utilities with ball & race mill, shall on annual basis mandatorily use 5 % blend of biomass pellets (torrefied only) made, primarily, of agro residue along with coal. This is to be complied within one year starting from this order. Two years from the date of issue of this order and thereafter the obligation will increase to 7 percent.
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All coal based thermal power plants of power generation utilities with ball & tube mills, shall on annual basis mandatorily use 5 % blend of torrefied biomass pellets with volatile content below 22%, primarily made of agro residue along with coal. This is to be complied within one year.
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Generating Utilities having certain units under Reserve Shutdown or not being dispatched due to MOD (Merit Order Dispatch) consideration would ensure to increase the percentage of co-firing up to 10 % in their other operating units/ plants (5 % in plants having ball and tube mills).
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Any power plants seeking exemptions / relaxation from co-firing may be considered on a case-by-case basis, based on recommendations of CEA.
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The policy for co-firing of biomass would be in force for 25 years or till the useful life of the thermal power plant, whichever is earlier. The minimum percentage of biomass for co-firing will be reviewed from time to time.
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The minimum contract period for procurement of biomass pellets by generating utilities shall be for 7 years to avoid delay in awarding contracts by generating companies every year and also to build up a long-term supply chain.
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Provisions related to tariff determination and scheduling shall be as given below:
- For projects set up under Section 62 of the Electricity Act 2003, the increase in cost due to co-firing of biomass pellets shall be passed through in Energy Charge Rate (ECR).
- For projects set up under Section 63 of the Electricity Act 2003, the increase in ECR due to biomass co-firing can be claimed under Change in Law provisions.
- Such additional impact on ECR shall not be considered in deciding Merit Order Dispatch (MOD) of the power plant.
- Obligated Entities such as Discoms can meet their Renewable Purchase Obligations (RPO) by buying such generation of co-firing.
