Thermal Plants Missed Biomass Targets in FY25 Due to Supply Constraints, says APP
APP said the domestic market for torrefied biomass pellets remains underdeveloped, especially for plants that operate ball and tube mills and are required to use such pellets. Power producers continue to face limited supplier capacity, frequent rejection of pellets due to high moisture or volatile matter, and a lack of solutions.
December 30, 2025. By Abha Rustagi
The statement follows show-cause notices issued by the Commission for Air Quality Management to six thermal power stations located within a 300 km radius of Delhi. The commission has proposed environmental compensation of INR 61.85 crore for the reported shortfall in biomass co-firing.
APP said the domestic market for torrefied biomass pellets remains underdeveloped, especially for plants that operate ball and tube mills and are required to use such pellets. Power producers continue to face limited supplier capacity, frequent rejection of pellets due to high moisture or volatile matter, and a lack of solutions validated by original equipment manufacturers.
Despite these constraints, APP said generators have taken steps to improve compliance. It cited Talwandi Sabo Power Limited, a 1,980 MW plant in Punjab, which faced difficulties in procuring torrefied biomass even after floating multiple tenders during FY25. To address the issue, the company supported local partners in setting up a torrefied biomass manufacturing unit near its Mansa plant to develop a local stubble-to-biofuel supply chain.
With better pellet availability, TSPL has improved its co-firing performance. The plant achieved 4.33 percent co-firing in August of FY26 and reached 5.07 percent year-to-date by 30 November 2025 after using 2,50,369 metric tonnes of biomass.
APP said this progress shows that compliance improves as the biomass value chain matures and that earlier shortfalls reflected market limitations rather than operational reluctance.
The association cautioned that penalising generators for factors beyond their reasonable control under the Environment Utilisation of Crop Residue by Thermal Power Plants Rules 2023 could impose financial stress without speeding up adoption. It urged the government to consider existing provisions for relaxation in genuine cases, including a one-time waiver of environmental compensation for FY25 or allowing compliance to be carried forward.
APP reiterated its support for efforts to curb stubble burning and improve air quality and called for a collaborative approach to strengthen the biomass supply chain and enable sustainable co-firing across the power sector.
please contact: contact@energetica-india.net.
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