SAEL Calls for Separate RPO, Tariff Support to Boost Biomass Power Growth

Sustainable & Affordable Energy for Life (SAEL), a renewable energy company based in Punjab, is calling for decisive government support to scale up decentralized biomass-to-energy generation using agricultural waste. With 11 operational plants and a 12th under construction, SAEL sources paddy straw directly from farmers, offering an alternative to stubble burning.

The company has grown from a single 15 MW plant near Bathinda to 11 operational plants across Punjab (4), Haryana (2), and Rajasthan (6), with a target of 1 GW capacity within 5–8 years.

A Local Solution to a Regional Crisis

SAEL’s plants operate on a simple principle: replacing coal with agri-residue, primarily loose paddy straw—not pellets or briquettes. Farmers in Punjab and Haryana face a tight 15–20 day window between harvesting and sowing, often leaving them with no choice but to burn the residue. SAEL provides a viable alternative by purchasing and processing that straw in boilers engineered for excess oxygen injection, which minimizes harmful emissions such as dioxins and furans.

“The objective is not just energy generation,” said Ankit Sapra, Group Head of Fuel Sourcing, “but also providing a practical solution to farmers and improving air quality.”

#1: Demand for a Separate Tariff for Biomass

Sapra argued that biomass power generation, while more expensive than coal, delivers broader savings and local benefits.

“We save 25% by avoiding central and state transmission charges and AT&C losses. If our generation tariff is ₹7.50/unit, we can deliver locally at ₹7.75/unit—more efficient than long-distance thermal power.”

He stressed the need for a separate tariff category that reflects these system-wide savings and local stabilization advantages, especially in rural grids.

#2: Restore Separate RPO for Biomass

Until 2022, biomass had a separate Renewable Purchase Obligation (RPO) target. The government’s decision to merge it with solar, SAEL argues, has diluted biomass’s growth potential.

“A 1,500 MW coal plant co-firing biomass at 2% achieves less impact than a dedicated 15 MW biomass plant,” Sapra said. “Dedicated plants also help local grids, create rural jobs, and directly support farmers.”

SAEL cited a recent NTPC tender as proof of limited agri-waste sourcing in co-firing: only enough biomass was procured to support around 15 MW, despite being issued for a much larger plant.

#3: Recognize Biomass-to-Energy as Waste Management

SAEL urges the government to reclassify biomass plants as waste management facilities, not just power plants.

“Cities are drowning in garbage, but if someone sets up a plant to convert waste to electricity, they’re still treated like a regular power generator subject to capped tariffs. That’s flawed,” said a company spokesperson.

Until the policy shifts to acknowledge their role in waste mitigation, biomass players will continue to be undervalued.

#4: Build Local Grids and Support Farmer-Centric Power

SAEL’s business model is rooted in building micro-grids that directly benefit local communities. The company envisions decentralized, low-voltage grids that stabilize power for irrigation and rural use.

“Why transmit biomass-based electricity hundreds of kilometers when we can supply locally without CTU/STU losses?” Sapra asked.

He added that their multi-fuel, Denmark-based boilers are capable of handling wheat residue and other crop waste not traditionally collected.

#5: Scaling Up to 1 GW with Policy Backing

Each biomass plant takes 18–24 months to build and costs approximately ₹15 crore per MW. SAEL is targeting 1 GW capacity in 5–8 years, contingent on government support.

“This is not just energy—it’s about solving India’s waste crisis, improving rural livelihoods, and cutting carbon emissions,” Sapra said.

Conclusion: A Call for Policy Parity

SAEL’s leadership says that unless policymakers recognize the multi-dimensional value of biomass-to-energy—environmental, economic, and rural—it will remain underfunded and under-leveraged.

“The government must stop comparing us with coal plants on tariff alone,” Sapra concluded. “This is waste management, rural development, and renewable energy in one. Support us accordingly.”