Power Ministry's Bold Move to Promote Sustainable Energy in Thermal Power Plants with Benchmark Prices

17 Nov 2023

In an important step towards sustainable energy practices, the government has set benchmark prices for biomass pellets used in thermal power plants in the western and northern regions, except the National Capital Region (NCR). According to the directive issued by the Ministry of Power, the price of biomass pellets used for co-firing in thermal power plants has been fixed after a comprehensive study by the Price Benchmarking Committee. The decision targets streamlining the supply chain of biomass pellets and encouraging the use of eco-friendly fuel, thereby promoting clean energy production.

For the Western Region, the benchmark price for non-painful biomass pellets has been set at Rs 2.24 per 1000 kcal, effective for a period of one year from November 8, 2023.These pellets should have moisture content less than 14% and a gross calorific value (GCV) between 2800-4000 kcal/kg, priced at the pellet manufacturing plant site, excluding GST and transportation costs. Similarly, for the Northern Region, excluding the NCR, under the same conditions, the benchmark price has been determined at Rs. 2.27/1000 kcal. The initiative is part of the government's policy to revise and increase co-firing of biomass in coal-based power plants in June this year.