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Ministry of Power Sets Benchmark Price for Biomass Pellets in NCR
The Ministry of Power has set a benchmark price for biomass pellets in the National Capital Region (NCR) at INR 2.32 per 1000 kcal, effective September 1, 2023, to promote biomass co-firing and reduce coal dependency in thermal power plants.
October 08, 2024. By Mrinmoy Dey
The Ministry of Power has recently specified the biomass fuel price in the National Capital Region (NCR) for a period of one year effective from September 1, 2023.
“The benchmark prices for non-torrefied biomass pellets in the NCR have been derived as INR 2.32 per 1000 kcal. The price specified excludes GST and transportation cost at the pellet manufacturing plant site,” notified the Ministry.
It further clarified that the pellets shall have a moisture content below 14 percent and GCV between 2800-3400 kcal/kg.
The benchmark price, determined by the Price Benchmarking Committee established by the MoP on June 22, 2023, carried out a study for NCR and submitted its report with the recommended benchmark price for NCR.
This comes after the Power Ministry updated its policy in order to promote and develop a sustainable supply chain of biomass pellets and enable faster pellet procurement by power utilities.
Subsequently, a committee on price benchmarking of biomass pellets was constituted to carry out region-wise price benchmarking of biomass pellets in order to accelerate the capacity addition of pellet manufacturing and to address the issue of existing volatility of raw biomass prices.
Now that the benchmark price has been decided, thermal power plants (TPPs) in the NCR have been directed to update their procurement practices to enhance biomass co-firing capabilities. This initiative aims to reduce coal dependency and promote the use of renewable resources in India's power sector.
“The benchmark prices for non-torrefied biomass pellets in the NCR have been derived as INR 2.32 per 1000 kcal. The price specified excludes GST and transportation cost at the pellet manufacturing plant site,” notified the Ministry.
It further clarified that the pellets shall have a moisture content below 14 percent and GCV between 2800-3400 kcal/kg.
The benchmark price, determined by the Price Benchmarking Committee established by the MoP on June 22, 2023, carried out a study for NCR and submitted its report with the recommended benchmark price for NCR.
This comes after the Power Ministry updated its policy in order to promote and develop a sustainable supply chain of biomass pellets and enable faster pellet procurement by power utilities.
Subsequently, a committee on price benchmarking of biomass pellets was constituted to carry out region-wise price benchmarking of biomass pellets in order to accelerate the capacity addition of pellet manufacturing and to address the issue of existing volatility of raw biomass prices.
Now that the benchmark price has been decided, thermal power plants (TPPs) in the NCR have been directed to update their procurement practices to enhance biomass co-firing capabilities. This initiative aims to reduce coal dependency and promote the use of renewable resources in India's power sector.
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