Policy to Regulate Price of Biomass Pellet

Context: The Indian Government has issued the benchmark prices for non-torrefied biomass pellets to ensure faster procurement of biomass pellets for co-firing with coal in thermal power plants.  

Fixed Benchmark Prices Boost Renewable Market Equity

• The benchmark prices have been fixed as Rs 2.32, Rs 2.27, and Rs 2.24 per 1000 kcal for the National Capital Region (NCR), Northern (excluding NCR) Region, and Western Region respectively.
• Impact: This will create a conducive environment for sustainable energy growth, and develop a sustainable supply chain and an equitable renewable market in the country.

What are Biomass Pellets?

• Biomass pellets are solid cylindrical sticks made from biomass like wood residue, that can burn and generate energy. 
• Raw Material for Bio-pellets
  • Agricultural Waste: crop stalk and straw material, rice husk,  coconut shell, sugarcane bagasse, etc.
  • Forestry Residue: sawmill residue, branches, bark, leaves, etc.
  • Solid Waste: junk paper, waste plastic, cardboard, etc.
• Types: 
  • Torrefied: Biomass processed at 250-350°C in the absence of oxygen. 
  • Non-torrefied pellets: biomass is shredded and sent to a pellet reactor, where it is compressed and bonded.
• Advantage: By compressing the waste products into pellets, they become more energy dense and have high combustion efficiency. 
  • Wood pellets have an energy density of 11 gigajoules/m3, compared to 3 gigajoules/m3 from fresh wood or wood chips (IRENA).
• Process to Manufacture: Biomass pellets are made at a pelletisation plant.
  • Pelletisation is the process where the raw materials are processed, converted to powder and then compressed into short solid dense biomass pellets. 
• Clean Energy: Biomass pellets produce 80% less CO2 emissions when combusted than coal, as well as lower levels of sulphur, chlorine, nitrogen.

Biomass Co-firing

• About: Biomass co-firing is the practice of replacing a portion of the coal with biomass at coal thermal plants.
  • For co-firing, the existing coal power plant equipment has to be partly reconstructed and retrofitted.
• Advantages: 
  • It is an option to convert biomass into clean electricity, 
  • It also reduces Greenhouse Gas emissions of the power plant.
  • It can also be an effective solution to pollution due to the open burning of crop residue. 

Other Steps taken by the government for Renewable Energy:  

• Waiver of Inter-State Transmission (ISTS) charges to promote the addition of renewable energy capacity in the country.   
• Any new coal/lignite-based thermal generating station must establish renewable energy generating capacity equivalent to 40% of its thermal capacity. 
• The government has introduced the Real-Time Market (RTM), Green Term Ahead Market (GTAM), and Green Day Ahead Market (GDAM) to promote competition and deepen the electricity markets.

Must Read: Renewable Energy Intermittency

Source: PIB

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