Revised Waste-to-Energy Guidelines
The Ministry of New and Renewable Energy (MNRE) has recently updated its guidelines for the Waste-to-Energy (WtE) Programme under the National Bioenergy Programme. This initiative aims to create a more efficient and transparent framework for converting bio waste into energy. The revisions are designed to enhance the ease of doing business for both public and private sectors, particularly for Micro, Small and Medium Enterprises (MSMEs).
Simplified Procedures
The revised guidelines simplify several processes in the WtE sector. They reduce paperwork and streamline approval requirements. This change is expected to increase the production of Compressed Biogas (CBG), biogas, and power. By easing these procedures, the MNRE aims to encourage more investments in the sector.
Improved Financial Assistance
A aspect of the revised guidelines is the new system for releasing Central Financial Assistance (CFA). Previously, financial support was contingent on achieving 80% generation before any funds were released. The new framework allows for the CFA to be released in two stages. Developers can now receive 50% of the total CFA after obtaining a Consent to Operate certificate. The remaining CFA will be disbursed upon reaching the required generation capacity.
Performance-Based Flexibility
The guidelines introduce performance-based flexibility in the disbursement of CFA. If a plant does not achieve 80% generation, a pro-rata disbursement based on actual output is permitted. However, no CFA will be granted if the Plant Load Factor (PLF) is below 50%. This approach acknowledges the challenges faced by developers and provides financial viability during operations.
Enhanced Inspection Process
The inspection process for WtE projects has been refined to improve transparency and accountability. Joint inspections will now be conducted by the National Institute of Bio-Energy (SSS-NIBE) alongside state agencies. For those not opting for advance CFA, only one performance inspection is required, reducing delays in project implementation.
Alignment with Sustainability Goals
These revisions align with India’s broader sustainability goals, including the aim to achieve net-zero emissions by 2070. By supporting the clean energy sector and enhancing waste management practices, the MNRE is encouraging a more sustainable future. The updated guidelines not only aid private sector players but also contribute to national renewable energy objectives.
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