The Ministry of Power has notified a comprehensive policy for co-firing of biomass pellets and torrefied charcoal made from municipal solid waste (MSW) in coal-based thermal power plants (TPPs) with effect from 2025-26.
The policy supersedes earlier guidelines issued in 2021 and 2023 and expands the scope of co-firing to include torrefied charcoal from MSW alongside agro-residue-based biomass. As per the policy, all thermal power plants across India will be required to co-fire 5 per cent biomass pellets with plants in the national capital region (NCR) required to additionally co-fire 2 per cent torrefied MSW charcoal, raising the total blend to 7 per cent. The mandatory use of biomass aims to reduce stubble burning, manage surplus waste, and support national clean energy and waste management goals. The policy mandates that 50 per cent of the biomass used by TPPs in the NCR and adjoining areas must be paddy straw sourced locally, reinforcing efforts to curb air pollution during winter months. To support implementation, the Ministry has issued a revised model contract for biomass use in TPPs and may notify benchmark pellet prices.