The Union power ministry has advised power plants to explore long term contracts with biomass pellet manufacturers. This comes at a time the government has announced in the Union budget its intent to use biomass in thermal power generation to lower carbon emission.

Speaking at a CII organised event on Monday, Union power secretary Alok Kumar said that the long contracts would encourage creation of manufacturing capacity.

“Earlier our power plants were procuring these pellets only for one season. So, there was no incentive to create new capacities for manufacturing the biomass pellets. We have advised the power plants to procure it for seven-year contracts so that people can set up new factories for producing biomass pellets and supplying them in a sustained manner,” said Kumar.

He added that biomass is expected to play a crucial role in the energy transition of the country as it looks to lower the use of fossil fuel and cut down on emissions. “It has two big advantages — it can be generated when needed and it is available everywhere in India,” said Kumar.

In the Union budget, finance minister Nirmala Sitharaman had announced the co-firing of biomass pellets in coal based power plants.

“Five to 7 per cent biomass pellets will be co-fired in thermal power plants resulting in CO2 savings of 38 MMT annually,” Sittharaman had said in the budget speech.

This will also provide extra income to farmers and job opportunities to locals and help avoid stubble burning in agriculture fields, she had said.

Kumar further said that beyond 2050, nuclear energy is expected to play a role in the energy mix of the country.

“Currently nuclear energy is being utilised to the extent of 8000-9000 MW and another 10-12000 MW is under construction. Beyond 2050, when we would have exploited almost all the renewable energy potential and coal will be limited by use because of emissions, nuclear energy will be an important fuel for the future and India would have to invest more in its development and deployment,” said Kumar.