Nagaland DISCOM to Procure Power from Bamboo Biomass Project at ₹5.06/kWh

The 10 MW project must be commissioned within 24 months of signing the PPA

August 28, 2023


Hutah Industries, a biomass-based power producer, has signed a power purchase agreement (PPA) with the Department of Power, Nagaland, for a 10 MW bamboo biomass project at the AK Industrial Village in Dimapur, Nagaland. The project will be developed on a build, own, and operate basis.

The project will be developed on 1,500 acres of land acquired on a long-term lease of 25 years for the onsite bamboo power project at the AK Industrial Village. Hutah Industries will execute it in turnkey engineering, procurement, and construction (EPC) mode.

The tariff for the electricity produced from the project has been set as ₹5.06 (~$0.061)/kWh and will be valid for the PPA period of 25 years.

The project must be commissioned within 24 months of signing the PPA.

The Department of Power, Nagaland, will execute the evacuation line from the factory to the Ganesh Anagar 33 kV substation, which the company will pay 18 months before the commissioning.

The crop to be used for the project is Beema bamboo, which has been developed through tissue culture by Indian scientist N Barati.

The project involves the integration of a technology-based platform to manage and monitor the multiple stages of sowing to harvest of bamboo.

The project includes inventory and logistics management, integrated with an agri drone-based monitoring system for bamboo estate optimization operations in hilly terrain.

The emission reduction purchase agreement (EPRA) for trading carbon credits has already been executed with EKI Energy for ten years, and the listing process has started.

In June this year, the Ministry of Power revised the Biomass Co-Firing Policy to benchmark the prices for biomass pellets utilized in co-firing at thermal power plants. The decision was prompted by the changing market conditions for biomass pellets and numerous requests from stakeholders such as thermal power plants, pellet manufacturers, farmers, bankers, and others.

Earlier, the Madhya Pradesh Electricity Regulatory Commission approved a tariff of ₹5.07 (0.062)/kWh for distribution companies (DISCOMs) to procure power generated from biomass-based projects in Madhya Pradesh.