CEA Asks States to Use 5-10% Biomass Pellets for Power Generation in Thermal Plants

The Haryana Electricity Regulatory Commission (HERC) has issued an order approving the power purchase agreements (PPAs) for a total of 49.8 MW of paddy straw biomass-based power projects signed between the developers and the Haryana Power Purchase Center (HPPC).

The HPPC had petitioned the HERC requesting the approval and signing of PPA with Hind Samachar Ltd. for 15 MW in Kurukshetra, Jind Bio-Energy LLP for 9.9 MW in Jind, Sukhbir Agro Energy Ltd for 15 MW in Kaithal and Fatehabad Bio-Energy (LLP) for 9.9 MW in Fatehabad.

While examining the petition, the HERC observed that the request for procurement (RfP) was floated by HAREDA according to the bid documents approved by the HERC and then the successful bidders were selected after due deliberations at the meeting of the high powered committee (HPC).

After reviewing the petition, the commission reduced the bank guarantee proposed by the HPPC. It had had proposed a bank guarantee of ₹3 million (~$4,314.39)/MW, which has now been reduced to ₹1 million (~$1,438.13)/MW.

Moreover, the commission approved a tariff of ₹7.27 (~$0.104)/kWh for Hind Samachar Ltd’s 15 MW paddy straw biomass-based power project, ₹7.29 (~$0.105)/kWh for Jind Bio-Energy LLP’s 9.9 MW project, Sukhbir Agro Energy Ltd’s 15 MW project, and Fatehabad Bio-Energy (LLP)’s 9.9 MW paddy straw biomass-based power project. The Haryana commission has also asked the HPPC to submit signed copies of the PPAs within two weeks.

In July 2018,  the HERC issued an order amending the terms and conditions for tariff determinations from renewable energy sources, renewable purchase obligations, and renewable energy certificates.

In August 2018, the Ministry of New and Renewable Energy (MNRE) invited Expression of Interest (EoI) to assess the potential of biomass power and bagasse cogeneration in India. This study will assess the amount of power that can be generated through available surplus biomass and bagasse in the country. The potential for power generation through biomass and bagasse will be assessed separately.

Then towards the end of 2018,  the ministry amended two clauses in the policy to support the promotion of biomass-based cogeneration projects in sugar mills and other industries in the country up to March 2020. MNRE had announced the program in May 2018.

 

Saumy Prateek Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.