The Indian Biogas Association (IBA) has called on the Ministry of Petroleum and Natural Gas to introduce concessional electricity tariffs for compressed biogas (CBG) plants, citing high operational costs as a major barrier to India’s clean energy transition. In a detailed submission, the IBA highlighted that electricity expenses, which constitute 20–48% of operating costs depending on feedstock and plant scale, are stifling the sector’s growth and competitiveness.

The IBA’s cost analysis reveals that at an average industrial tariff of Rs 7 per kWh, electricity accounts for 34% of operating expenses in paddy straw-based CBG plants, 28% in press mud-based plants, 19% in cow dung-based plants, and up to 48% in municipal solid waste-based plants. Proposing a shift to domestic tariffs of Rs 4.5 per kWh, the IBA argues that this reform would significantly reduce costs, enhance profitability, and attract private investment to scale up CBG production.

“The CBG industry is a keystone in achieving India’s Panchamrit commitments announced at COP26,” said IBA Chairman Gaurav Kedia. “By easing the cost burden of electricity, we can drive our 50% non-fossil energy goal by 2030 and support Net Zero by 2070.” Kedia emphasized that high industrial tariffs deter new entrants and limit expansion, undermining the sector’s role in reducing reliance on imported fossil fuels.

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The IBA’s plea aligns with India’s ambitious targets under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme, which aims to establish 5,000 CBG plants by 2030, producing 15 million tonnes of CBG annually. With only 583 biogas plants currently operational, including 40 under SATAT, the sector faces challenges like high costs and inadequate offtake guarantees. The proposed tariff reform could bolster financial viability, encouraging entrepreneurs and supporting the GOBARdhan scheme’s push for a circular economy through 500 new waste-to-wealth plants.

Established in 2011 and revitalized in 2015, the IBA represents stakeholders across the biogas industry, advocating for sustainable practices to advance India’s green energy goals. The association’s call for concessional tariffs aims to integrate CBG seamlessly into India’s energy mix, fostering a cleaner, more sustainable future.

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