The Union Ministry of Power has issued a new policy mandating the co-firing of biomass pellets and municipal solid waste (MSW)-based torrefied charcoal in coal-based Thermal Power Plants (TPPs).
The policy aims to use surplus agricultural residue and unmanaged MSW to reduce emissions and support the Swachh Bharat Mission.
TPPs in Delhi-NCR must blend 5% biomass pellets and 2% MSW charcoal from 2025–26, while other plants must co-fire 5% biomass or MSW charcoal.
The policy allows tariff pass-through of additional fuel costs under the Energy Charge Rate and provides case-by-case exemptions.