The Association of Power Producers (APP) has responded to show-cause notices issued by the Commission for Air Quality Management (CAQM) to six thermal power stations near Delhi. The CAQM had proposed environmental compensation of Rs 61.85 crore due to the power plants’ failure to meet biomass co-firing targets in FY 2024-25. However, the APP has attributed this shortfall to limited biomass availability and technical constraints, rather than a lack of effort by generators.
According to the APP, the domestic market for torrefied biomass pellets, which are required for plants with ball and tube mills, is underdeveloped. The industry faces challenges such as insufficient supplier capacity, high rejection rates due to moisture or volatile matter, and the absence of OEM-validated solutions. This has made it difficult for power plants to procure adequate biomass, despite their best efforts.
The APP cited the example of Talwandi Sabo Power Ltd (TSPL), a 1,980-MW plant in Punjab, which struggled to procure torrefied biomass despite floating multiple tenders in FY25. To address this issue, TSPL supported local partners in setting up a torrefied biomass manufacturing facility near its Mansa plant, creating a circular stubble-to-biofuel ecosystem in the region.
The APP’s statement highlights the need for a more developed biomass market and infrastructure to support the co-firing of biomass in thermal power plants. The association is likely to engage with the CAQM and other stakeholders to find solutions to these challenges and ensure that power plants can meet their biomass co-firing targets. The issue is critical, as biomass co-firing can help reduce air pollution in the National Capital Region (NCR) and surrounding areas. The APP’s response suggests that the power industry is committed to reducing its environmental impact, but requires support and infrastructure to achieve its goals.