The Association of Power Producers (APP) on Friday said several thermal power plants were unable to meet biomass co-firing targets in FY25 mainly because of limited fuel availability and technical challenges, and not due to any lack of effort by power generators, reports The Hindu businessline.
The statement comes after the Commission for Air Quality Management (CAQM) issued show-cause notices to six thermal power plants located within a 300-km radius of Delhi and proposed environmental compensation amounting to ₹61.85 crore for failing to meet prescribed targets.
APP said the domestic supply of torrefied biomass pellets, which are required for plants using ball and tube mills, is still underdeveloped. Power producers continue to face problems such as inadequate supplier capacity, high rejection of pellets due to excess moisture or volatile content, and the absence of equipment solutions validated by original manufacturers.
Despite these challenges, APP said generators have been making efforts to improve compliance. It cited the example of Talwandi Sabo Power Limited (TSPL), a 1,980 MW plant in Punjab, which faced difficulties in sourcing sufficient torrefied biomass even after issuing multiple tenders during FY25.
To overcome this, TSPL supported local partners in setting up a torrefied biomass production unit near its Mansa facility. APP said this initiative has helped develop a local system that converts crop residue into biofuel, supporting both fuel supply and farm waste management.
With better availability of biomass pellets, TSPL’s co-firing levels have improved. The plant achieved 4.33 per cent biomass co-firing in August of FY26 and reached 5.07 per cent on a year-to-date basis by November 2025, after using more than 2.5 lakh tonnes of biomass.
APP said this progress shows that compliance improves as the biomass supply chain becomes stronger, and that earlier shortfalls were the result of market limitations rather than unwillingness on the part of power producers.
The association cautioned that imposing penalties under the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 for issues beyond the control of generators could place unnecessary financial pressure on the sector without speeding up adoption. It urged the government to consider flexibility in cases of genuine difficulty, including a one-time waiver of penalties for FY25 or allowing compliance to be carried forward to later years.
APP reaffirmed its support for efforts to reduce stubble burning and improve air quality, and called for closer coordination between stakeholders to strengthen the biomass supply chain and enable wider and more sustainable adoption of biomass co-firing across the power sector.
