MNRE revises guidelines for waste-to-energy projects to boost

MNRE revises guidelines for waste-to-energy projects to boost

efficiency and accelerate financial support

The Ministry of New and Renewable Energy (MNRE) in Saturday announced revised guidelines for the Waste-to-Energy (WtE) Programme under the National Bioenergy Programme, aiming to create a more efficient, transparent, and performance-driven ecosystem for bioenergy deployment in India. The updated framework simplifies processes, accelerates financial assistance, and ties support to plant performance, fostering a business-friendly environment for both private and public sector entities, particularly micro, small, and medium enterprises (MSMEs).

The revised guidelines streamline procedures by reducing paperwork and easing approval requirements, enabling enhanced production of compressed biogas (CBG), biogas, and power. These changes support improved waste management, including stubble and industrial waste, aligning with India’s goal of achieving net-zero emissions by 2070.

A key feature of the revised guidelines is an improved system for disbursing Central Financial Assistance (CFA). Previously, developers had to wait until their WtE projects achieved 80% generation capacity to receive funding. The new framework allows CFA to be released in two stages: 50% of the total CFA will be disbursed upon obtaining the Consent to Operate certificate from the State Pollution Control Board, backed by a bank guarantee, with the remaining amount released after the plant achieves 80% of its rated capacity or the maximum CFA-eligible capacity, whichever is lower. For plants failing to reach 80% capacity during performance inspections, a pro-rata disbursement based on output percentage is now available, though no CFA will be provided if the plant load factor falls below 50%. This flexibility acknowledges operational challenges and enhances financial viability for developersေ

The inspection process has also been refined to ensure greater transparency and accountability. Joint inspections will now be conducted by the National Institute of Bio-Energy (SSS-NIBE), an autonomous MNRE institute, alongside a representative from State Nodal Agencies, Biogas Technology Development Centers, or an MNRE-empaneled agency. For developers not opting for advance CFA, only one performance inspection is required, minimizing procedural delays.

Additionally, the guidelines provide developers with flexibility to claim CFA within 18 months from either the date of commissioning or the date of in-principle CFA approval, whichever is later.

These revisions mark a significant step toward supporting India’s clean energy sector. By aligning financial support with actual performance, simplifying compliance, and improving access to funding, MNRE is fostering a conducive environment for WtE projects. This initiative not only aids private players in the sector but also advances India’s goals of sustainable waste management and renewable energy development.