Thermal plants’ biomass shortfall due to supply constraints, says APP

The Association of Power Producers (APP) in India has said that several thermal power plants failed to meet biomass co-firing targets in FY25 because of supply shortages and technical limitations, not a lack of intent by generators.
The clarification follows show-cause notices issued by the Commission for Air Quality Management (CAQM) to six thermal power stations within a 300-km radius of Delhi, along with proposed environmental compensation totalling ₹61.85 crore.
APP said the domestic market for torrefied biomass pellets—mandatory for plants operating ball and tube mills - remains underdeveloped.
Power producers continue to face limited supplier capacity, high rejection rates due to moisture and volatile matter, and the absence of OEM-validated solutions.
Despite these challenges, generators have been taking steps to improve compliance. APP cited Talwandi Sabo Power Limited (TSPL), a 1,980-MW plant in Punjab, which struggled to secure torrefied biomass in FY25 despite multiple tenders.
The company subsequently supported local partners to establish a torrefied biomass manufacturing facility near its Mansa plant, creating a local stubble-to-biofuel ecosystem.
With improved pellet availability, TSPL’s co-firing performance has risen, achieving 4.33% in August FY26 and 5.07% year-to-date by 30 November 2025, after using 250,369 metric tonnes of biomass.
APP said the improvement demonstrates that compliance increases as the biomass value chain matures, and that earlier shortfalls reflected market immaturity rather than operational reluctance.
The association warned 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 relaxations 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, calling for a collaborative approach to strengthen the biomass supply chain and enable sustainable, scalable co-firing across the power sector.