Such plants cost around Rs 4.5-6 crore per MW, while generation expense is around Rs 3.25-4.00 per kwH. At the end of 2015-16, the country’s total biomass power installed capacity (along with co-generation units) was 4831.33 MW, with another 1150 MW under construction. Barring Karnataka, Maharashtra, Tamil Nadu, Uttarakhand and Uttar Pradesh, no state added any biomass power or co-generation capacity in the last fiscal year. Rather, leading players like Orient Green Power have been trying hard to sell off their biomass power assets, as they are not profitable.Punjab has an biomass power and co-generation installed capacity of 155.5 MW, of which around 62.5 MW are in operation. Haryana has not added a single MW of biomass power for the past three years.The main reason for biomass power's stagnation is that for many years the feed-in tariff offered by the states for biomass power was too low.

Source: Economic Times November 09, 2016 19:29 UTC