Biomass $ 9251 million every year, leading to

Biomass in Indian energy matrix is very
important for remote villages and disenfranchised settlements. Biomass related
projects receives an investment of about $ 9251 million every year, leading to
electricity generation of 5000 million units. The national target is to achieve
10 GW of installed biomass power by 2022.

India has a potential
of about 18 GW of energy from Biomass. Currently, about 32% of total primary energy
used in India is derived from Biomass. More than 70% of the country’s
population depends upon biomass for its energy needs. India has ~5+ GW capacity biomass powered
plants: 83% are grid connected while the remaining 17% are off-grid plants. The off- grid plants are divided between
cogeneration plants that do not utilize bagasse, biomass gasifiers for rural
applications and biomass gasifiers for thermal applications in industry. Around
70 Cogeneration projects are under implementation with surplus capacity
aggregating to 800 MW. The leading states for biomass power projects
are Maharashtra, Uttar Pradesh and Karnataka each one having more than 1 GW of
Grid interacted biomass power. Other states with favorable policy and opportunities in Biomass are Punjab and
Bihar. The central government has developed an overarching policy for biomass
and bagasse cogeneration. It includes financial incentives and subsidies, both
for biomass projects and sugar mills that use this technology. GoI gives
10 years Income tax holidays. Concessional customs and excise duty exemption
for machinery and components for initial setting up of Biomass power projects.
General sales tax exemption is available in certain States. State governments
have also instituted their own incentives and subsidies and these initiatives
differ across states.Even with decades of experience in managing biomass power, still their
exists lots of gaps in the supply chain. The main scope for interventions are
in collection and mobilization of the raw material to the plant; technical
upliftment of the processing units including both bio as well as thermo
plants; improving design and engineering aspects, promoting performance
monitoring and management systems, conducting feasibility studies and focused
research and development.

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