MNRE has been working towards supporting biomass-based cogeneration projects in the country and had introduced a scheme for the same in May 2018. The scheme provides CFA of INR 25 Lakhs/MW for bagasse cogeneration projects and INR 50 Lakh/MW for non-bagasse cogeneration projects.
Recently MNRE has made two amendments in clause 5 & 6 of the scheme to provide more financial support to the projects. The changes are as follows:
Apart from this, The Madhya Pradesh Electricity Regulatory Commission (MPERC) has rejected two petitions filed by owners of bagasse-based cogeneration projects against the imposition of cross-subsidy surcharge for self-consumption of power in Madhya Pradesh.
The petitioners Shri Durga Khandsari Sugar Mills and Narmada Sugar Private Limited had approached MPERC to not impose cross-subsidy on self-consumption of the electricity from its own bagasse-based cogenerating stations. However, both the plaintiffs were selling the majority of its generated electricty via open access and less than 51% was being self-consumed. Hence, the commission was of the opinion that whole power supplied by the cogeneration plants of the petitioners will be treated as if the power is supplied by a generating company.
MNRE has also invited an Expression of Interest (EOI) for tapping the potential of biomass and bagasse co-generation in the country as of October 2018, to promote the source of energy.