Discoms will have to buy all power created from municipal waste

NEW DELHI: In a move aimed at making our cities clean by way of better trash management, the government is set to make it mandatory for power distribution companies to buy 100% of electricity generated from municipal solid waste.

The power ministry has finalised a cabinet note to amend the electricity Act 2003 and incorporate this provision among others. “The proposal will come up for cabinet approval shortly,” said a government official.

The act as of now provides for purchase of electricity from only two non-renewable energy sources — wind and solar.

Currently, only 23% of municipal waste — which includes household and commercial garbage and construction debris — produced in a day is processed or properly disposed of. India generates 24 MW (mega watts) of power from such waste at four waste-to-energy plants with a capacity of 41 MW. But it has the potential to generate 500 MW.

Waste-to-energy is currently economically unviable because discourage private players from setting up such plants.

But the government hopes the amended law will change all this “The Centre has already commit ted a 20% grant for solid waste management projects under the Swachh Bharat Mission. The move mandating discoms to purchase 100% power will incentivise more developers to set up such plants,” said a government official.

The Central Electricity Regulatory Commission has recently fixed a tariff of Rs7.04 per unit for power derived from municipal solid waste.