The Government of India is promoting bioenergy projects to support clean energy generation, waste management, and air pollution mitigation, according to information provided in the Rajya Sabha by Minister of State for MNRE, Shri Shripad Yesso Naik.
Bioenergy Installed Capacity and Generation
As of 28 February 2026, India’s bioenergy sector has expanded across biomass, waste-to-energy (WtE), and biogas plants, contributing significantly to renewable energy generation:
| Year | Installed Capacity (MW/MWe) | Annual Generation (Million Units) |
|---|---|---|
| 2020-21 | Biomass 7.05, WtE 41.75, Biogas 23,019 | Biomass 3,512.98, Bagasse 11,302.85 |
| 2021-22 | Biomass 60, WtE 80.16 | Biomass 3,482.70, Bagasse 12,573.88 |
| 2022-23 | Biomass 42.4, WtE 75.69, Biogas 9,627 | Biomass 3,161.32, Bagasse 12,863.16 |
| 2023-24 | Biomass 107.3, WtE 35.37, Biogas 13,219 | Biomass 3,417.19, Bagasse 10,825.59 |
| 2024-25 | Biomass 387.8, WtE 254.41, Biogas 12,067 | Biomass 3,738.67, Bagasse 9,335.32 |
Since the inception of biomass co-firing in thermal power plants (TPPs) in FY 2019–20, approximately 5.7 million metric tonnes of carbon dioxide emissions have been avoided, while also reducing fossil fuel consumption and improving regional air quality.
Key Barriers
The government identifies feedstock availability and high capital cost per MW as major challenges in scaling bioenergy projects.
Government Initiatives to Promote Bioenergy
- MNRE National Bioenergy Programme (NBP): Provides Central Financial Assistance (CFA) for biomass power plants, briquette/pellet manufacturing, and compressed biogas (CBG/BioCNG) plants.
- Crop Residue Management (CRM) Scheme, MoAF&W: Offers 50% financial assistance to farmers for CRM machinery and up to 80% support to rural entrepreneurs, cooperatives, SHGs, and FPOs. Paddy supply chain projects receive 65% support up to Rs. 1.5 crore.
- Central Pollution Control Board (CPCB): Provides one-time financial support for pelletization and torrefaction plants.
- Biomass Aggregation Machinery (BAM) Scheme, Ministry of Petroleum & Natural Gas: Supports CBG producers in procuring machinery for efficient biomass collection and utilization, preventing open-field burning.
- Swachh Bharat Mission-Urban 2.0, MoHUA: Offers CFA for various waste processing facilities, including Material Recovery Facilities, Waste-to-Compost, Bio-methanation, Waste-to-Electricity, Refused Derived Fuel, Construction & Demolition, sanitary landfills, and CBG plants.
The government’s multi-pronged approach integrates bioenergy into India’s renewable energy mix, while simultaneously addressing waste management, pollution control, and sustainable energy generation.
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