Summing Up and Policy Recommendations

Round Table on Bioenergy Issues and Options
Summing Up and Policy Recommendations
(Barriers faced by the bioenergy sector in India and
policy measures needed for removing these and
stimulating development)
1) Biomass supply
Barrier: Inadequate and uncertain biomass supply and high
Policy measures: Augment supply
i) Energy plantation, including plantation in degraded land;
ii) Create favourable condition for private sector involvement in
iii) Promote use of residues by a. involving entrepreneurs /local
(bales/briquettes/pellets), c. creating depots and d.
iv) Consider ban on field burning of crop residues;
v) Promote biomass use efficiency in household stoves and
establishments to save biomass fuels, which can be used
for other energy applications.
1) Biomass supply Contd.
vi) Promote use of biomass briquettes/pellets by
waiving off VAT on the product.
vii) Give monetary incentives to consumers per MJ
(or kg) of briquettes or pellets for reducing
effective cost and to promote use of these fuels.
viii) Anyone willing to set up a biomass briquette
plant should be entitled to hassle-free loan from
Public Sector banks.
(Input from Mr. Nitesh Rungta of Sridhar Group,
1) Biomass supply Contd.
ix) Promote MSW use for energy by providing attractive
tariff for Power from MSW to promote private sector
x) Implement model demonstration projects on different
gasification, pyrolysis, RDF etc.)
xi) Consider ban on open burning/dumping of MSW.
xii) Consider capacity building of officials of corporations
and municipalities and expose them to MSW experience in
developed countries, e.g. Sweden, Canada etc.
2. Biopower
Barriers: i) Fuel supply risks, ii) Unattractive Tariff, iii)
Faltering RPO scheme, iv) In case of gasifiers, specific
challenges exist regarding disposal of ash, tar and
recycled water.
Policy measures:
i) Permission for new biopower plants should require
long-term fuel supply agreement.
ii) Incentives and tariffs (FIT) should be enough to
make private sector involvement attractive.
iii) Support for R&D for minimizing tar in producer gas
and associated problems.
iv) Enforce Renewable Purchase Obligation (RPO)
(RPO is vital for promoting power from RE. Current
trend suggests that most states are likely to miss the
target, 15% by 2020, by a wide margin.)
3. Biofuels
Barriers: i) Lack of raw material (ethanol); ii) Lack of
high-yielding Jatropha seed supply (Biodiesel)
Policy Measures:
Promote R&D on or Tech Transfer of advanced biofuels
from cellulosic materials/algae
Promote R&D on or Tech Transfer of biodiesel from
high-yielding Jatropha and other crops.
4. Improved/advanced stoves
Lack of awareness about health impacts and access to
improved/advanced stove designs
High cost of improved/advanced stoves and processed
fuels for advanced stoves
Policy measures:
Launch national awareness campaign on health impacts
in line with campaign against smoking and to create
demand for improved stoves (similar to campaign to
promote house toilets in rural areas.)
Introduce incentives for reducing effective costs of
stoves and purchased fuels by consumers.
5. General Barriers
i) Lack of easy access to technologies developed abroad
ii) Lack of enforcement of targets for biopower, biofuel,
RPO etc.
iii) Lack of coordination among ministries, departments
and agencies.
iv) Low electrical load in rural areas.
v) High interest rate for bank loans in bioenergy sector.
vi) Lack of effective CO2 control strategy.
Policy measures
•Facilitate transfer of technologies not available in the
•Introduce enforcement mechanism/fix responsibility
for meeting national bioenergy targets.
•Consider single window for promoting private sector
•Create electrical load as part of rural development
•limit interest rate to 10% or at Priority Sector levels
•Impose carbon tax on all fossil fuels (not just coal, R

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