Several thermal power plants across India failed to meet biomass co-firing targets in FY 2024-25 not because they lacked effort, but because of persistent supply and technical challenges.
Industry Faces Real Supply Constraints
The Association of Power Producers (APP) stated that many generators struggled to secure sufficient biomass, particularly torrefied biomass pellets, which are required for co-firing in plants equipped with ball and tube mills. Consequently, limited availability and underdeveloped pellet markets hindered compliance with renewable blending norms. Furthermore, plants encountered high rejection rates due to moisture and other quality issues, and they lacked OEM-validated technical solutions to consistently burn biomass with coal.
Regulatory Action Triggered by Shortfall
As a result of these shortfalls, the Commission for Air Quality Management (CAQM) recently issued show-cause notices to six coal-based power stations located within 300 km of Delhi. The regulator has proposed environmental compensation totalling ₹61.85 crore for failing to achieve minimum biomass blending percentages during FY25.
As per Economic Times, APP emphasised that these shortfalls reflect market immaturity rather than lack of intent by plant operators.
Examples Show Progress and Challenges
APP highlighted the case of Talwandi Sabo Power Ltd (TSPL) in Punjab, which initially struggled to procure enough torrefied pellets despite issuing multiple tenders in FY25. In response, the plant supported local partners to establish a biomass pellet manufacturing facility near its Mansa site. Consequently, its co-firing performance improved significantly — rising from low levels in FY25 to over 5 % year-to-date by November 30, 2025.
Industry Urges Policy Flexibility
Finally, APP urged policymakers to consider relaxations or waivers for generators that faced genuine supply and operational constraints. It argued that penalising plants for circumstances beyond their control could cause unnecessary financial stress without meaningfully accelerating biomass adoption.
