Why the biomass industry is booming in India

India is rapidly emerging as a global leader in biomass energy, driven by the nation's need to diversify energy sources and reduce its reliance on fossil fuels. With a population exceeding 1.4 billion, India is harnessing biomass, including agricultural residues, animal waste, and organic matter, as a crucial component of its renewable energy strategy. As of FY23, India’s installed biomass power capacity exceeded 200 GW, with plans to expand further to reach 500 GW of non-fossil fuel energy by FY30. The biomass industry addresses the country's energy requirements. It supports rural economic development, providing jobs and additional income for farmers by converting agricultural waste into energy. This initiative also helps mitigate environmental pollution caused by burning crop residues.

The growing demand for renewable energy, aligned with India’s commitment to the Paris Agreement, has boosted the biomass sector. Biomass offers a stable energy source that complements solar and wind power, contributing to energy security. Government policies such as the National Biofuels Policy and the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) have spurred the sector's growth, supported by financial incentives and grants. Moreover, biomass energy reduces carbon emissions, improves air quality, and curbs deforestation by providing an alternative to wood-based fuels. The biomass industry also contributes to advancing rural economic growth, creating employment opportunities in energy production, infrastructure development, and waste management. As a result, the sector is set to remain a key player in India's energy transition, contributing significantly to both environmental sustainability and rural prosperity.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.