From stubble to power: How India can tap the 28.45 GW potential of its surplus biomass residue

As Delhi's winter smog season approaches, agricultural residue burning is once again drawing scrutiny as one of the contributors to deteriorating air quality across the National Capital Region and a threat to public health. Studies have also shown that emissions from stubble burning contribute to climate change.

To address this, the Union government in November 2025 mandated that thermal power plants co-fire coal with biomass pellets and torrefied charcoal derived from municipal solid waste. It also set minimum shares of 7 per cent for plants in and around the National Capital Region (NCR) and 5 per cent elsewhere. While this is a viable solution, a new field study suggests that its success will depend on a supply chain that is more reliable and inclusive.

Let’s understand how. 

According to the National Biomass Atlas of India, prepared by the Sardar Swaran Singh National Institute of Bio-Energy under the Union Ministry of New and Renewable Energy, India generates about 228.5 million tonnes of surplus biomass residue each year; the gross power potential of this surplus bioresource is 28.45 gigawatt—that is roughly one-tenth of the country’s record peak demand of 270.8 GW, met in May 2026. However, before reaching the power plant, the agricultural residue passes through a diverse network of stakeholders. 

Farmers supply crop residues after harvest; aggregators organise their collection and storage; processors compress the loose biomass into pellets and briquettes at densification plants; and transporters move these from fields to processing facilities and then to thermal power plants, where the processed biomass or pellets are burned alongside coal to generate steam which is used to produce electricity.

Farmers gain, but face last mile hurdles 

Researchers at the Ashoka Centre for a People-centric Energy Transition (ACPET) recently conducted a 45-day survey of 155 people  in Haryana’s Panipat, Sonipat and Karnal districts to examine how biomass co-firing affects livelihoods along the supply chain. The respondents included 100 farmers, 20 aggregators, 15 transporters and 20 processors. 

The findings point to a visible decline in stubble burning. For farmers, collecting and selling crop residue can provide an additional source of income, and the state government offers an incentive of ₹1,200 per acre (0.4 hectare) a year to farmers for participating in crop-residue management programmes designed to curb the stubble burning practice. However, the field survey found that 61 per cent of farmers had to pay aggregators for residue management. The constraint appears to be last-mile logistics: few aggregators operate locally, and the window before the next sowing is short.

Farmers reported improvement in their well-being, often through indirect benefits, such as lower health risks or savings on field preparation. Overall, 87 per cent reported health improvements associated with crop-residue management, alongside new opportunities to earn income. 

Biomass co-firing also advances the vision of Atmanirbhar Bharat (self-reliant India), launched by Prime Minister Narendra Modi in 2020, as much of the machinery are domestically manufactured and has local supply chains. This offers it a potential advantage over other renewable energy industries, notably solar, which remain dependent on imported equipment. 

The biomass supply chain also creates rural jobs. Aggregation provides seasonal work for men with little formal education, most of whom are unskilled or semi-skilled. Processing plants employ a mix of skilled technicians, semi-skilled operators and largely unskilled labourers. Their use of domestically manufactured machinery further supports local industry.

An unreliable supply chain 

Overall, growing demand from power plants has created new business opportunities across the supply chain, from aggregators to processors to transporters. But operational bottlenecks persist. Inadequate storage, variable feedstock quality, such as feedstock with high moisture content, and seasonal supply disruptions, particularly during the monsoon, complicate procurement and processing. Many processing units operate below capacity because supplies are irregular and market conditions uncertain. 

Low procurement prices and delayed payments add to the difficulties. 

Transporters face their own constraints, such as high fuel costs. Women remain under-represented across the workforce and are concentrated mainly in administrative roles. 

Sustaining the benefits of biomass co-firing—from cleaner air and better residue management to higher farm incomes—will therefore require more than growing demand from power plants. Policy must make the supply chain more reliable and inclusive.

Long-term contracts specifying supply volumes and aligning procurement with power plants’ requirements could reduce uncertainty for biomass suppliers. Farmer participation could be encouraged through aggregation models, awareness campaigns and a minimum support price for crop residues. Ensuring the timely availability of local aggregators is essential for maintaining a reliable crop residue supply chain. Better storage infrastructure would help smooth seasonal disruptions, while targeted skills programmes and support for women-led enterprises could broaden women’s participation. Integrating biomass co-firing into India’s Carbon Credit Trading Scheme could also create a revenue stream from verified emissions reductions, provided those reductions can be measured and attributed reliably. 

Biomass co-firing sits at the intersection of energy security, rural livelihoods and environmental protection. With dependable markets, better infrastructure and policies that distribute its benefits more fairly, it could become a more durable part of India’s energy transition. 

All three authors contributed to the study. The views expressed are their own and do not necessarily reflect those of their university or Down To Earth.