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Biomass Power high fuel costs makes it less competitive

Biomass Power Plants in Tamil Nadu have reduced their power generation capacity as the demand has come down. Since May 2013, the state government has allowed unconditional intra-State third party sale which has resulted in reduced power shortage for HT consumers. The current cost of per unit of Rs.6.5 from biomass power plants is costlier by Re.1 which finds few takers. The generation has been selling 20-25 MW in October 2013 from 100 MW last year. This has also resulted in decrease in off-take of agricultural residues from farmers who in turn have petitioned the government. We have to wait and see whether government can bring a preferential tariff to biomass producers

Indian Biomass Producer Association sought intervention of Forum of Regulators (FoR)

Indian Biomass Producer Association has sought intervention from Forum of Regulators (FoR, an apex body of regulators) for resolution of the problem faced by the industry. With rising price of biomass across the country, the power production cost is getting unremunerative and many of the biomass plants have shut down. Despite, having a potential to generate 18000 MW, only 1150 MW is generated now. The industry is also facing penalties in the event of reduction in plant load factors and asked for waiver of this clause. The producers have cited their inability as calorific value of biomass varies according to season , place to place etc.,

Mundeswari Bio Energy to set up 12 MW biomass project in Kaimur

Mundeswari Bio Energy is planning to set up a 12 MW biomass power plant in Kaimur in Bhabhua district of Bihar. The project cost is estimated at Rs. 520 million. The project is likely to go operational in January 2012.

Mundeshwari Bio Energy Pvt Ltd Universal Trade Tower, 5th Floor, Sector-49, Sohna Road – 122001 Gurgaon, Haryana

Biomass Developer Association formed

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Biomass-based power producers from across the country with their state associations have come together to form a pan- India body — Biomass Developers Association. Their objective is to work together to harness the s estimated potential of about 19,000 MW and to address some of the challenges faced in implementing the projects. Recently, the fuel costs have nearly doubled to Rs. 5.50 to Rs. 6.0 a unit.

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