Central Electricity Authority (CEA) has issued an advisory dated 17 Nov 2017 to all the coal based power plants to use 5-10% of agro residue based pellets along with coal. CEA has also issued technical specification for pellets or torrefied pellets.

In line with above advisory, NTPC has floated tender for procurement of 1000 metric tonnes per day (MTPD) of agro residue based pellets or torrefied pellets for NTPC Dadri. Out of total requirement of 1000 MTPD, purchase order for 200 metric tonnes per day of agro residue based pellets or torrefied pellets has been placed to three companies with supply duration of 2 years.

As per NTPC, use of farm stubble in its power plants will increase the cost of power generation. The increase in variable charge of electricity will depend on difference in price of biomass and coal, increase in heat rate and increase in auxiliary power consumption. The increase in fixed charges will depend as per additional capital expenditure required for biomass material handling infrastructure.

As per estimate of Central Electricity Authority (CEA), 1000 TPD (tonnes per day) of biomass pellets have the potential to generate 65 MW of power or 1.56 MU of electricity on daily basis when fired with coal in a coal fired power plant.