The Association of Power Producers (APP) on Thursday said the inability of several thermal power plants to meet biomass co-firing targets in FY 2024–25 was primarily due to limited biomass availability and technical constraints -- not a lack of intent or effort by generators.

This comes after the Commission for Air Quality Management (CAQM) issued show-cause notices to six thermal power stations within a 300-km radius of Delhi and proposed environmental compensation of Rs 61.85 crore for the reported shortfall, the Association said in a statement.

APP noted that the domestic market for torrefied biomass pellets -- mandated for plants equipped with ball and tube mills -- remains significantly underdeveloped.

The industry continues to face challenges such as insufficient supplier capacity, high rejection rates due to moisture or volatile matter, and the absence of OEM-validated solutions, it stated.

It cited the example of Talwandi Sabo Power Ltd (TSPL), a 1,980-MW plant in Punjab, which struggled to procure adequate torrefied biomass despite floating multiple tenders in FY25. TSPL supported local partners in setting up a torrefied biomass manufacturing facility near its Mansa plant, helping create a circular stubble-to-biofuel ecosystem in the region.