Indian Biomass power generators to plead case on rates, costs

These companies want annual revision of the variable cost component of the power supply rates fixed for them, a mechanism to ‘fix’ the price of biomass and some concessions on connections to the grid.

The Indian Biomass Companies are looking to pleadi their case at a public hearing convened by the Central Electricity Regulatory Commission (CERC) on the draft rules on rates fixed for renewable energy, for the 2012-17 period.

CERC Chairman Pramod Deo said, “We will hear all operators of renewable energy, including biomass power plants.”

P Krishnakumar, president of the Indian Biomass Power Association says “We are of the view that the (rate) revision for biomass power projects can be done annually and should be limited to the impact of interest costs and fuel costs. We will also request CERC to exempt the scheduling of biomass power plants, as these operate subject to availability of biomass

Nearly 50%-60% of biomass plants in India are shut . The reasons are rising biomass cost and an inadequate tariff (rate). On-ground realities may make it difficult to increase biomass capacity to 19,500 MW during the 12th and 13th five-year plans (it is presently 1,084 Mw) in such circumstances.

CERC is also to be pressed to direct state electricity regulatory commissions to allow inter-state open access for biomass power.