The price benchmarking of biomass pellets for co-firing in thermal power plants across different regions in India.

The price benchmarking of biomass pellets for co-firing in thermal power plants across different regions in India. Here are the key points:

1. Purpose: To promote and develop a sustainable supply chain of biomass pellets and enable faster pellet procurement by power utilities.
2. Policy Context:
   • The Ministry of Power issued a revised policy for biomass utilization for power generation through co-firing in coal-based power plants on 16th June 2023.
   • A committee on price benchmarking of biomass pellets was constituted on 22nd June 2023.
3. Benchmark Prices and Regions:
   • National Capital Region (NCR):
     • Benchmark price: Rs. 2.32 per 1000 kcal.
     • Valid from: 1st September 2023.
     • Moisture content below 14%, GCV between 2800-3400 kcal/kg.
   • Northern Region (excluding NCR):
     • Benchmark price: Rs. 2.27 per 1000 kcal.
     • Valid from: 8th November 2023.
     • Moisture content below 14%, GCV between 2800-4000 kcal/kg.
   • Western Region:
     • Benchmark price: Rs. 2.24 per 1000 kcal.
     • Valid from: 8th November 2023.
     • Moisture content below 14%, GCV between 2800-4000 kcal/kg.
4. Exclusions:
   • Prices specified are excluding GST and transportation costs at the pellet manufacturing plant site.
5. Implementation:
   • The concerned Thermal Power Plants (TPPs) are advised to adhere to the specified benchmark prices.
   • This advisory is issued with the approval of the Hon’ble Minister of Power and New and Renewable Energy (NRE).
6. Communication:
   • Copies of the advisory were sent to key stakeholders, including chief secretaries of the respective states, MDs of power plants, and relevant ministries and departments for information and necessary action.