New Co-Firing Policy by Ministry of Power: MSW-Based Torrefied Charcoal Gets Green Signal in Thermal Power Plants
The biomass sector in India is growing rapidly, with new verticals being added regularly. In a major boost to this sector, the Ministry of Power has issued a new notification dated 7 November 2025, bringing an important policy change related to co-firing in thermal power plants.
This update opens huge business and investment opportunities for biomass pellet manufacturers and Municipal Solid Waste (MSW) to energy projects.
What Is the New Policy Update?
As per the latest notification:
Thermal power plants are already required to do mandatory biomass co-firing
Now, MSW-based torrefied charcoal has also been officially included
This means power plants can now use:
Agricultural residue-based biomass pellets
MSW-based torrefied charcoal / RDF fuel
Along with coal for power generation
Mandatory Blending Structure Explained
Total mandatory blending: Up to 7%
Up to 5% can be met using biomass pellets
Additional 2% can now be fulfilled using MSW-based torrefied charcoal
This is a game-changing step, especially for urban waste management and waste-to-energy projects.
Why MSW-Based Fuel Is a Big Opportunity?
According to the Ministry of Power:
Nearly 14 million metric tonnes of Municipal Solid Waste per year remains unutilized
Urban local bodies (Municipal Corporations & Committees) generate massive waste daily
This waste can now be:
Processed into RDF
Converted into torrefied or non-torrefied charcoal
Supplied to thermal power plants for co-firing
This creates a new revenue-generating vertical within the biomass ecosystem.
High Potential Areas
NCR & Urban Regions with:
Active thermal power plants
High MSW generation
Many municipal bodies are:
Offering land
Inviting private operators
Supporting waste-to-energy plants
Conclusion
- The inclusion of Municipal Solid Waste-based torrefied charcoal in thermal power plant co-firing is a strong policy signal by the Government of India. It not only supports clean energy goals but also solves urban waste challenges.
- This new vertical strengthens the future of the biomass sector and opens doors for innovative, profitable, and sustainable projects.
- Stay connected with KIP for regular updates on:
Biomass tenders
Government policies
Investment opportunities
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