Date: 03/04/2023

Relevance: GS-3: Infrastructure: Energy; Conservation, Environmental Pollution, and Degradation, Environmental Impact Assessment.

Key Phrases: Biomass Co-firing Policy, agro-residue, biomass pellets, CO2 emissions, Air Pollution, SAMARTH mission, government e-Marketplace, Priority Sector Lending (PSL), Model Contract Document for pellet procurement, Energy Conservation (Amendment) Act, 2022, Central Pollution Control Boards.

Why in News?

• India has set ambitious renewable energy targets and has taken significant steps towards reducing greenhouse gas emissions from the power sector.
• One such step is the Biomass Co-firing Policy, which encourages thermal power plants to use biomass as a fuel source along with coal.
• Despite its potential benefits, the policy has not been widely accepted yet.

Biomass Co-firing policy:

• Ministry of Power issued a revised policy on biomass utilization for power generation through co-firing in coal-based power plants on October 8, 2021.
• This policy mandates the use of 5% biomass pellets made primarily of agro-residue along with coal in thermal power plants with effect from one year from the date of issuance of this policy.
• As per this policy, the obligation to use biomass pellets in thermal power plants shall increase to 7% with effect from two years after the date of issuance of this policy.

Progress so far:

• So far about 1 lakh tonnes of biomass has been co-fired in 42 thermal power stations.
• The Mission has already published the Standard Operating Procedure for co-firing and Model Contract Document for pellet procurement to facilitate the thermal power plants.
• The pellet manufacturing sector is also being encouraged to bridge the demand-supply gap.
• There are now dedicated financial assistance schemes for biomass pellet manufacturing units from MNRE and Central Pollution Control Boards as well as easy availability of finance options from banks.

Benefits of Biomass Co-firing policy:

• Lower Greenhouse Gas Emissions:
  • Biomass co-firing reduces CO2 emissions from power plants.
  • Switching from coal to biomass in coal-based power plants could cut carbon dioxide emissions by 38 million tonnes.
• Supporting India's global commitment:
  • It can also help India achieve its global commitment towards a 45% emission reduction by 2030.
• Employment Opportunities:
  • The use of biomass in thermal power plants can create job opportunities in the biomass manufacturing sector.
• Reduction of Coal Consumption:
  • Co-firing biomass with coal reduces the consumption of coal.
  • Using biomass is still a cheaper option than imported coal and hence an economically viable alternative for all thermal power plants.
  • It can also help reduce India's dependence on imported coal.
• Green Electricity:
  • The use of biomass in thermal power plants enables the generation of green electricity.
• Air Pollution:
  • Co-firing biomass with coal reduces air pollution from power plants.
• Surplus Biomass Utilization:
  • Biomass co-firing helps in the utilization of surplus biomass which is otherwise burnt, decayed, or dumped.
• Renewable fuel source:
  • The recently notified Energy Conservation (Amendment) Act, 2022 specifies that all thermal power plants will have to use renewable fuel sources either as energy or feedstock.

Issues:

• Supply issues
  • Consistency:
    • Several surveys of power plants have shown that there are concerns among power plant managers over the steady and consistent supply of biomass.
  • Varying availability and quality:
    • The availability and quality of biomass vary across regions in India. While some regions have an abundance of biomass, others face a shortage.
    • The quality of biomass also varies, which can affect its combustion efficiency and emissions.
    • Therefore, there is a need to ensure a steady supply of high-quality biomass to power plants.
  • Storage:
    • Biomass pellets are difficult to store at plant locations for extended periods because they quickly collect moisture from the air, making them unusable for co-firing.
    • Only pellets with a moisture content of less than 13-14 percent typically can be burned alongside coal.
• Logistics challenges:
  • The transport and storage of biomass can be challenging, especially in areas where infrastructure is inadequate.
  • This requires specialized equipment and facilities, which can increase the cost of biomass co-firing.
  • Infrastructure and logistics need to be built so that biomass can be moved and stored more efficiently.
• Technology And Equipment:
  • Biomass co-firing requires specialized equipment, such as biomass grinders, conveyors, and storage systems. Power plants need to be retrofitted to enable biomass co-firing.
  • There is a need to develop and deploy the necessary technology and equipment for biomass co-firing.

Government initiatives:

• Priority sector:
  • The government has now identified Biomass pellet manufacturing under the Priority Sector Lending (PSL) guidelines of the RBI.
• Procurement:
  • The biomass pellets can also be procured through the government e-Marketplace by the thermal power plants.
• Regulatory hurdles:
  • The government is also working to resolve various regulatory hurdles in the sector like providing a Single Window for statuary clearances via NSWS and working on a methodology for price assurance/benchmarking of biomass pellets.
• SAMARTH mission:
  • The SAMARTH mission has successfully executed training events aimed at increasing co-firing levels and improving the supply chain of biomass pellets.

Building a Robust Regulatory Framework

• The need of the hour is a robust regulatory framework that offers incentives and support for biomass co-firing which must be the foundation for the biomass co-firing policy.
• Also, a distinct, competitive market must exist for biomass to ensure equitable pricing and distribution.
• The government on its part has formed five working groups under the mission and these are inter-ministerial.

Conclusion:

• The Biomass Co-firing Policy is a critical step towards achieving India's renewable energy targets and reducing greenhouse gas emissions.
• The Biomass Co-firing Policy needs to be backed by a strong policy and regulatory framework that provides incentives and support for biomass co-firing.
• Also, there needs to be a clear, competitive market for biomass to make sure that prices and distribution are fair.

Source: The Hindu BL

Mains Question:

Q. Analyse the potential of the Biomass Co-firing Policy in India to achieve renewable energy targets and reduce greenhouse gas emissions. What are the challenges faced by the policy and how can they be overcome?