Waste to Energy


The depleting sources of fossil fuels, sharp increase in power tariffs to industrialists due to heavy subsidies to Agriculture, very high T&D losses, decrease in reliability of power required, leads one to think of the alternative soco-economic, efficient, environment friendly and reliable sources of energies.

Waste generation due to domestic, commercial and industrial activities is not a new thing. It was not considered a problem just a few centuries ago since it was manageable. The post industrial revolution era saw rapid urbanization and industrialization resulting in large-scale waste generation concentrated at certain urban centers.

Recent technological advances have proven that waste-to-energy projects are commercially viable. The national potential of power from waste has been assessed to be 1700 MW which is likely to be increased to 2500 MW by the end of tenth five-year plan.


Various technologies are available to harness energy or power by treatment of urban & industrial wastes. It is estimated that through adoption of these technologies over 1000 MW of equivalent power can be generated from the above wastes in India. Some of the basic technologies for treatment of solid wastes are as follows

  • Incineration

Incineration is a process of controlled combustion for burning of wastes and residues containing combustible material. It is generally used for solid wastes. The heat generated during incineration is recovered and utilised for the production of steam, heating water and generating electricity.

  • Pelletisation

Pelletisation is a process of production of fuel pellets from solid wastes. Fuel pellets are also referred as Refuse Derived Fuel (RDF). On an average 30 tonnes of fuel pellets per day can be produced by using 100 tons of solid wastes. Fuel pellets do have a calorific value of about 3500 to 4000 kcal/kg and can be used as a fuel for heating plants,boilers etc for generation of steam, which in turn can be used for generation of power.

  • Pyrolysis / gasification

In pyrolysis/gasification process segregated combustible matter is allowed for drying/dewatering and thereafter it is shredded in a hammer mill. The end product includes combustible gas called producer gas which can be utilised for production of power.

  • Sanitary Landfill
  • Biomethanation

In Biomethanation technology, organic matter of solid wastes is segregated and after segregation it is fed into bio-reactor, wherein presence of methanogenic Bacteria,and under anaerobic condition, fermentation takes place and biogas is produced which can be used in biogas engines to generate electricity.

Central Financial Assistance

Central Financial Assistance (CFA) for projects of different categories would be given in the form of capital subsidy to the promoters and in the form of Grants-in-Aid for other activities, as given below:

Capital subsidy to the promoters

Wastes/Processes/Technologies Capital Subsidy
1.Power generation from Municipal Solid Waste Rs. 2.00 crore/MW (Max. Rs.10crore/project)
2. Power generation from biogas at Sewage Treatment Plant or through biomethanation of Urban and Agricultural Waste/residues including cattle dung or production of bio-CNG. Rs. 2.00 crore/MW or bio-CNG from 12000 m3 biogas/day (Max. Rs. 5 crore/project)
3. Biogas generation from Urban, Industrial and Agricultural Wastes/residues Rs. 0.50 crore /MWeq. (12000 m3 biogas /day with maximum of Rs. 5 cr./ project)
4. Power Generation from Biogas (engine / gas turbine route) and production of bio-CNG for filling into gas cylinders Rs. 1.00 crore/MW or bio-CNG from 12000 m3 biogas (Max. Rs.5 crore/project Rs. 0.20 crore/MW (Max. Rs. 1 crore/project)
5. Power Generation from Biogas, Solid Industrial, Agricultural Waste/residues excluding bagasse through Boiler + Steam Turbine Configuration

The capital subsidy will be considered subject to the following:

  • The amount of capital subsidy would be calculated on the basis of installed capacity.
  • Total capital subsidy would be limited to Rs. 5.00 crore per project for Industrial Waste, however, it will be limited to Rs. 1.00 crore per project in case of projects for power generation through boiler turbine configuration in stand alone mode or through co-generation.
  • Subsidy amount will be restricted to 20% of the project cost in Urban, Agricultural Waste/residues and Industrial Waste while financial assistance will be limited to 40 % for STP.
  • In case of Special Category States (NE Region, Sikkim, J&K, Himachal Pradesh and Uttarakhand), the capital subsidy would be 20% higher than that for other States. This provision will also be applicable two items above.
  • CFA to Biomass co-generation projects would be limited to a maximum of Rs. 1.0 crore/project , irrespective of the installed capacity of the project.

Incentives to State Nodal Agencies

State Nodal Agencies would be provided an incentive / service charge @ Rs.1% of the subsidy restricted to Rs.5.00 lakh per project, in order to facilitate development of projects and their monitoring during implementation / post commissioning. Service charges for Biomass co-generation (Non-bagasse) projects would be @ Rs.1 lakh/MW restricted to Rs. 5 lakh/project.

Financial Assistance for promotional activities

Financial assistance would be provided for organizing training courses, business meets, seminars/ workshops and publicity /awareness on case-to- case basis, subject to a maximum of Rs. 3.0 lakhs per event/ activity.

Source: MNRE & IREDA

Free Registration...!!!!

Are you a member of Power Sector..! The article you are trying to view is accessible to registered users of Power Sector community. If you are a registered user, please login using your account details, or create new account to become a registered user.

As a registered user you get the following benefits -

  • Access to Power Sector knowledgebase that is updated on daily basis
  • Access to daily news and articles related to power sector
  • Access to various forums and discussions
  • Daily newsletters letters delivered directly to your inbox
  • Special offers and discounts on various power sector conferences held across the country
  • One year limited free access to premium content such as tenders
  • Special discounts on market research reports

Grow your network through our extensive social networking community. Follow us on

To know about advertising options and other available promotional activities that Power Sector can help your company, please contact us.