The Association of Power Producers (APP) has formally addressed the challenges surrounding biomass co-firing in India’s thermal power sector.
In a detailed assessment of the 2024-25 fiscal year (FY25), the representative body clarified that the failure of several thermal power plants to meet mandatory blending targets was a direct consequence of severe supply-side constraints and technical bottlenecks, rather than a lack of operational commitment.
Regulatory pressure vs. market reality:
The APP’s statement comes as a response to recent regulatory actions by the Commission for Air Quality Management (CAQM).
The commission recently issued show-cause notices to six major coal-based thermal power stations located within a 300-km radius of the National Capital Region (NCR). These notices were accompanied by a proposed environmental compensation penalty totaling ₹61.85 crore for failing to adhere to biomass co-firing norms.
However, the APP argues that such penalties may be premature. “The inability of several thermal power plants to meet biomass co-firing targets in FY 2024–25 was primarily due to limited biomass availability and technical constraints—not a lack of intent or effort by generators,” the association stated.
The torrefied pellet bottleneck:
A significant portion of the shortfall is linked to the underdeveloped market for torrefied biomass pellets. These specific pellets are a prerequisite for plants equipped with ball and tube mills. According to the APP, the domestic supply chain for torrefied pellets remains in its infancy, characterized by:
Insufficient Supplier Capacity: There are currently too few manufacturers capable of meeting the massive volume requirements of large-scale power stations.
Quality Inconsistency: Generators frequently report high rejection rates for delivered pellets due to excessive moisture content or volatile matter that falls outside permissible safety limits.
Lack of OEM Solutions: Many plants still lack technical solutions validated by Original Equipment Manufacturers (OEMs) to ensure long-term boiler health when burning biomass.
Case study: Talwandi Sabo Power Ltd
To illustrate the industry’s proactive stance, the APP cited the example of Talwandi Sabo Power Limited (TSPL), a 1,980-MW plant in Punjab. Despite floating multiple tenders throughout FY25, TSPL struggled to source adequate fuel. To resolve this, the plant actively supported local partners in establishing a torrefied biomass manufacturing facility near its Mansa site.
This intervention has yielded results: TSPL’s co-firing performance rose to 4.33% in August FY26 and reached a year-to-date average of 5.07% by late 2025. This proves that when the supply chain matures, compliance follows naturally.
A plea for policy flexibility:
The APP has urged the Ministry of Power and the CAQM to consider a more flexible regulatory approach. The Association warned that imposing heavy financial penalties for factors beyond a generator’s “reasonable control” could cause unnecessary financial distress without actually speeding up the adoption of green fuels.
“Earlier shortfalls were driven by market immaturity rather than operational reluctance,” the APP emphasized. The industry body is now advocating for a one-time waiver of environmental compensation for FY25 or the provision to carry forward compliance obligations to subsequent years as the biomass ecosystem stabilizes.
As the government pushes for 5-7% biomass blending to reduce stubble burning and carbon emissions, the APP maintains that collaboration—not litigation—is the key to a sustainable transition.
