According to reports, biomass based power producers from across the country have come together to form a pan-India body Biomass Developers Association with the objective of working together to harness the country’s estimated potential of about 19,000 mw and to address some of the challenges faced in implementing the projects.
“From State-based associations of biomass producers, we are expanding this to form a pan-India body. Though there have been larger guidelines of the Central Electricity Regulatory Commission with regard to biomass, the issues are largely State related,” Mr. P. Krishna Kumar, Managing Director of Orient Green Power Company Ltd., said.
In an exclusive interaction with Business Line, Mr. Krishna Kumar said biomass forms an important part of renewable energy source and holds promise to add to the existing generation capacity. Yet it is largely untapped as the fuel input costs have gone up nearly twice in the past few years and the overall cost per unit works out to about Rs.5.50 to Rs.6 a unit.
Mr. D.Radhakrishna, Director of Deeaar Group, said though the tariff policy clearly stipulates preferential tariff for renewable energy industry but we find that the prices fixed by State regulators for biomass are in great variance causing difficulty to producers. The disorganised nature of biomass also adds to the problems.
Biomass producers today held a closed door meet here at Bio mass conclave 2011. More than 120 companies and their representatives took part. Mr. Santoh Kamath, Co-Founder, Auro Mira Energy Company, said mandatory purchase of fraction of biomass power by high tension users will encourage more companies to go ahead with their projects.
“In addition, lack of support and encouragement from some States are hindering the setting up of new projects in the country. In fact, even several developers which have permission are holding up investments due to local issues. Therefore, this pan-India body will play a role,” he said.