Many waste-to-electricity projects operate under the public-private partnership (PPP) model, relying on the sale of power generated from municipal solid waste (MSW) and byproducts used in construction 

A Parliamentary panel has suggested the creation of a special purpose vehicle (SPV) involving important organisations like the Solar Energy Corporation of India (SECI), Indian Renewable Energy Development Agency (IREDA) and private enterprises in an effort to address the difficulties faced by waste-to-electricity plants in India. Power purchase agreements (PPAs) for these facilities are intended to be expedited by this action.

The waste-to-energy industry has had considerable delays in PPA implementation with State Electricity Departments/DISCOMS. This is mainly because of the comparatively high rate, which is around Rs 8 per kilowatt-hour (KWH). Compared to other renewable energy sources like solar electricity, this rate is greater.

In a report submitted to Parliament, the Parliamentary Standing Committee on Energy proposed that the establishment of a special purpose vehicle (SPV) may simplify the process of obtaining power from waste-to-electricity plants. This Special Purpose Vehicle (SPV) would purchase power from these plants through partnerships with private corporations and central public sector organisations like SECI and IREDA.

The SPV can sell the electricity it generates to interested parties and potentially list it for trading on power exchanges when it obtains power from the waste-to-electricity plants. It is anticipated that this proposed arrangement will guarantee the off-take of power, inspire confidence among stakeholders and present a strong argument for drawing in low-cost capital from the market.

The public-private partnership (PPP) model is employed by many waste-to-electricity projects, which rely on the sale of electricity produced from municipal solid waste (MSW) and byproducts used in construction. The ability to state DISCOMs is sold to generate income for these projects.

The panel discussed how Engineers India Ltd., with its ecological engineers and scientists, could help develop technology-based techniques to reduce emissions, such as emission filters, in order to address environmental problems related to waste-to-electricity plants.

The committee underlined how crucial it is for waste-to-electricity plants to research and implement international best practices. In order to guarantee the accessibility and availability of raw materials and completed goods in real time, it suggested the creation of biomass trading platforms.

In order to maximise utilisation in a number of fields, including compressed biogas, bio-ethanol, biomass-to-power, methanol, green hydrogen and more, the panel also demanded thorough mapping of waste and feedstock. It was suggested that mapping be updated on a regular basis to help with demand-supply and to facilitate both short- and long-term planning for waste-to-energy and bioenergy across the nation.

The committee’s suggestions also included creating a strong market for biofertilisers by means of supply chain expansion, farmer incentives, information and education initiatives and public awareness campaigns.

The group also recommended that industrial townships consider establishing waste-to-energy plants as a way to lower net waste generation and save money on transportation. It was believed that requiring the construction of these plants would help to fulfil the objectives of Extended Producer Responsibility (EPR).

(Inputs from Planet Outlook)