The Association of Power Producers (APP) has said that several thermal power plants were unable to meet biomass co-firing targets in FY25 mainly because of supply constraints and technical challenges, and not because power generators were unwilling to comply with the norms, reports Bioenergy Insight.
The clarification comes after the Commission for Air Quality Management (CAQM) issued show-cause notices to six thermal power stations located within a 300-km radius of Delhi and proposed environmental compensation amounting to ₹61.85 crore for non-compliance.
According to APP, the domestic market for torrefied biomass pellets, which are mandatory for power plants using ball and tube mills, is still not adequately developed. It said power producers continue to face problems such as limited supplier capacity, frequent rejection of pellets due to high moisture and volatile content, and the lack of solutions approved by original equipment manufacturers.
Despite these constraints, APP said generating companies 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 securing torrefied biomass during FY25 even after issuing multiple tenders.
The association said TSPL later supported local partners to set up a torrefied biomass production unit near its Mansa plant, helping create a local ecosystem that converts crop residue into biofuel. With better availability of pellets, the plant’s co-firing performance improved, reaching 4.33% in August FY26 and 5.07% on a year-to-date basis up to November 30, 2025, after using about 250,369 metric tonnes of biomass.
APP said this progress shows that compliance improves as the biomass supply chain becomes stronger, and that earlier shortfalls were due to the early stage of market development rather than resistance from operators.
The association cautioned that penalising power producers for factors beyond their control under the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 could add financial pressure without accelerating adoption. It urged the government to consider relief in genuine cases, such as a one-time waiver of environmental compensation for FY25 or allowing unmet targets to be carried forward.
Reiterating its support for measures to curb stubble burning and improve air quality, APP called for a cooperative approach involving all stakeholders to strengthen the biomass supply chain and enable sustainable and wider use of co-firing across the power sector.
