MoP establishes biomass pellet price benchmark in western and northern regions

The Biomass Co-Firing Policy has been updated by the Ministry of Power (MoP) to establish biomass pellets price benchmark used in co-firing within thermal power plants. This move aligns with the objective of integrating cleaner and environmentally friendly energy sources into the nation’s power generation framework. In the northern region (except the NCR), the benchmark price for non-torrefied biomass pellets is Rs 2.27 per 1,000 kcal. This pricing does not include GST and transportation expenses to the location of the pellet production plant. Likewise, the price benchmark for non-torrefied biomass pellets in the western region has been established at Rs 2.24 per 1,000 kcal. The designated pellets for both the regions must also retain a moisture level under 14 per cent and exhibit a gross calorific value ranging from 2,800 to 4,000 kcal per kg.

Following the committee’s recommendation, the price of biomass fuel has been designated for a duration of one year, commencing on November 8, 2023. Power utilities are required to comply with these set rates for biomass pellets to effectively implement the established benchmark prices.