Biomass Power Generation


Biomass Power


Biomass - An Alternative Source of Energy

Biomass being a product of natural resources viz. land, water, air and sun’s energy, gives much hope as an alternative, reliable and renewable source of energy. Biomass is an organic matter produced by plants, both terrestrial and aquatic and their derivatives. Plant materials use the sun’s energy to convert atmospheric carbon-di-oxide to sugars during photosynthesis. On combustion of the Biomass, energy is released as the sugars are converted back to carbon-di-oxide. Thus energy is harnessed and released in a short time frame, making Biomass a renewable energy source. Though fossil fuels have also been derived from atmospheric carbon-di-oxide, the time frame is very long - in the order of millions of years as compared to a few years in case of Biomass. Currently, Biomass contributes 14% of the total energy supply worldwide and 38% of this energy is consumed in developing countries, predominantly in the rural and traditional sectors of the economy. Biomass feedstock is an organic matter used as fuel for heat/gas/electricity generation. The resource of biomass feedstock can be categorized as follows:

S. No Category Resources
1 Crop Residue Bagasse (sugarcane residue), Corn stalk, Rice hulls & Rice-straw, wheat straw, Nutshells
2 Animal Waste Animal excrement (manure). Animal by-product from processing.
3 Food Processing Waste Potato waste, Cheese whey waste, Fruit pits, Leftover sludge and other energy-rich FPW.
4 Wood waste Wood waste includes any type of wood or wood-based product.

Biomass Potential India is a tropical country blessed with sunshine and rains and thus offers an ideal environment for Biomass production. Further, the vast agricultural potential, also makes available huge agro-residues to meet the energy needs. With an estimated production of about 460 million tonnes of agricultural waste every year, Biomass is capable of supplementing the coal to the tune of about 260 million tonnes. This can result in a saving of about Rs. 250 billion, every year. Various Types Agro Field / Industrial Residues

Type of Agro residues Quantity(Million Tonnes / annum)
Straws of various pulses & cereals 225.50
Bagasse 31.00
Rice Husk 10.00
Groundnut Shell 11.10
Stalks 02.00
Various Oil Stalks 04.50
Others 65.90
Total 350.00

The estimated potentials of Biomass based renewable energy options in India are as follows

Biomass Energy 16,000 MW
Bagasse Co-Generation 3,500 MW
Total 19, 500 MW
Scheme Available:
Project financing (with following broader outlines):
  • IREDA shall finance not more than one independent Biomass Power Project excluding captive Biomass/ Bagasse based Co-generation, in a radius of 50 KM, whether funded by IREDA/other FIs/Banks.
  • For Biomass direct combustion power projects, IREDA’s loan exposure may be limited upto 50% of project cost.
  • Biomass direct combustion power projects exceeding 7.5 MW capacity up to a maximum of 10 MW, will be considered on case to case basis subject to careful examination, particularly with reference to Biomass availability, presence of other Biomass power/ Biomass cogeneration projects in that area, linkage for off-season fuel, water availability etc. and the loan from IREDA shall not exceed loan for 7.5 MW of the project. However, IREDA may also consider projects exceeding 7.5 MW upto maximum of 10 MW on a 70: 30 debt equity ratio and may take exposure upto 50 % of project cost subject to above condition and that the promoter shall bring in upfront 75 % of their contribution.
Incentives available in the sector

May please refer to IREDA Financing Guidelines available at Annexure_I.pdf Further, the details related of Government support/incentives/policy if any, may be obtained from MNRE website.
Procurement All the projects proposed to be funded by IREDA are requested to follow established commercials practices for procurement like RFQ, Tendering and Bid evaluation, etc., to the satisfaction of IREDA. The projects proposed to be funded by IREDA under International Lines of Credit are required to follow the following procurement procedures and also the procurement procedures set forth in the guidelines under the relevant International Line of Credit.

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List of officers Name in sector- Biomass Power Generation
Sl. No. Name Designation Email Id Mobile No.
1 Kanchan Bhalla Deputy General Manager kanchan[at]ireda[dot]in 9818354321
2 Pradeep Deswal Manager pradeepdeswal[at]ireda[dot]in 9873627789
3 Abhinav Chandra Manager abhinavchandra[at]ireda[dot]in 9717547743
Last Updated on 24/05/2021