Lok Sabha Question No. 3038 (UNSTARRED), answered on 2023-12-21
Subject: Price Regulating Policy for Use of Biomass Pellets
Ministry: POWER
Asked by: Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.3038

## ANSWERED ON 21.12.2023

## PRICE REGULATING POLICY FOR USE OF BIOMASS PELLETS

3038. SHRI DUSHYANT SINGH:

Will the Minister of POWER be pleased to state:

- (a) whether the Government is taking steps to foster a more robust market for biomass pellets and help stabilize the volatile raw biomass prices, ensuring a secure supply of eco-friendly fuel for country's growing power needs;
- (b) if so, the details of the price regulating policy for biomass pellets used for co-firing in thermal power plants; and
- (c) the  other  steps  being  taken  by  the  Government  to  establish  a  more organised  and  equitable  renewable  energy  market  in  the  country,  creating  a conducive environment for sustainable energy growth and investment?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) & (b) : With a view to promote and develop sustainable supply chain & at the same time to ensure faster procurement of biomass pellets for co-firing with coal  in  thermal  power  plants,  the  benchmark  price  for  non-torrefied  biomass pellets  has  been  issued  by  Ministry  of  Power  (MoP)  on  23.08.2023  and 08.11.2023. The benchmark prices have been fixed as Rs 2.32, Rs 2.27 and Rs 2.24 per 1000 kcal (excluding GST & transportation cost from pellet manufacturing  plant  site  to  thermal  power  plant)  for  National  Capital  Region (NCR), Northern (excluding NCR) Region and Western Region respectively. This will also have a stability effect on the prices of raw biomass in the market.

- (c) : The Government has taken a number of steps from time to time as per  need  to  create  a  conducive  environment  for  sustainable  energy  growth, investment and to establish a more organized and equitable renewable market in

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## the country. Some of these steps are enumerated under:

- (i).  Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 have been issued and the limit of open access has been reduced from 1 MW to 100 kW paving the way for small consumers for purchasing RE and there is no limit for Captive Consumers.
- (ii). Electricity (Amendment) Rules, 2022 have been notified for implementation of 'Uniform Renewable Energy Tariff for Central Pool'.
- (iii).    Ministry  of  Power  vide  order  dated  12th  April,  2022  issued  the revised scheme for 'Flexibility in Generation and Scheduling of Thermal/ Hydro  Power  Stations  through  bundling  with  Renewable  Energy  and Storage Power' with the objective of reducing dependence on fossil fuels, increasing  RE  capacity  addition  and  increasing  uptake  of  Renewable Energy by distribution licensees.
- (iv).    To  promote  the  addition  of  renewable  energy  generation  in  the country,  waiver  of  Inter-State  Transmission  (ISTS)  charges  has  been provided for electricity generated from solar, wind, hydro-pumped storage projects  (PSP),  and  Battery  Energy  Storage  Systems  (BESS)  for  a  fixed duration.
- (v).  Government  vide  notification  dated  20th  Oct  2023  mandated  all designated consumers, including electricity distribution licensees, captive users, and open-access consumers, to replace a specific portion of their electricity  consumption  with  renewable  energy  sources,  in  accordance with the trajectory outlined in the notification.
- (vi). Ministry of Power vide order dated 27 th  February 2023 has mandated that any coal/lignite-based thermal generating station commencing Commercial Operation on or after April 1, 2023, must establish renewable energy  generating  capacity  equivalent  to  a  minimum  of  forty  percent (40%)  of  its  thermal  capacity  or  procure  and  supply  renewable  energy equivalent to such capacity as per the specified time lines.
- (vii). The Government has introduced the Real-Time Market (RTM), Green Term  Ahead  Market  (GTAM),  and  Green  Day  Ahead  Market  (GDAM)  to accommodate  a  greater  amount  of  renewable  energy  sources  and  to promote competition along with the deepening of the electricity markets.

(viii).  The  trajectory  for  Renewable  Purchase  Obligation (RPO) up  to the year 2029-30 has been specified and penal provisions have been introduced for non-compliance under Energy Conservation Act, 2001. For RE procured beyond the obligation, tradable Renewable Energy Certificates can be issued.

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