Despite Policy Push, India’s Bioenergy Rollout Remains Uneven

However, there is a caveat: the deployment on the ground remains largely uneven.

According to the Ministry of New and Renewable Energy (MNRE), under the National Bio-Energy Programme (NBP) Phase-I, only a handful of states have built capacity across the biogas, biomass, and waste-to-energy segments, while most continue to lag.

As of February 2026, the country has only about 384 megawatt of biomass power, of which 381.87 MW is of waste-to-energy capacity, and over 34,900 are small biogas plants, alongside medium-scale biogas infrastructure. This energy mix is available in select geographies, showing deeper structural and policy challenges.

Deployment Remains Low

Despite progress in Western and Northern states such as Maharashtra, Punjab, and Gujarat, the footprint is thin across several other states.

Odisha and Jharkhand show very limited deployment, with the former having only 216 small biogas plants and minimal capacity in biomass and waste-to-energy, while the latter has barely any installations.

According to Odisha Renewable Development Agency (OREDA), a district like Kandhamal in Odisha has not even received any project under Phase-I NBP.

The situation is the same in the northeastern states, including Mizoram, Meghalaya, Nagaland, and Arunachal Pradesh. These states have nearly zero presence in biomass and waste-to-energy projects.

Ladakh, Lakshadweep, Andaman & Nicobar Islands, and Puducherry show no deployment across any component of the programme.

Official data show a stark contrast between the huge deployment in some states and regions remaining untouched by the bioenergy push.

Why Is It Uneven

This uneven rollout is not accidental; there are a few factors, including supply chain and low private sector participation, that influence it.

These projects depend on a reliable combination of agricultural residue and organic waste. Maharashtra, Punjab, and Gujarat have relatively organised supply chains, while eastern and northeastern states lack the infrastructure to collect, process, and transport biomass efficiently.

The deployment is also heavily dependent on private investment, especially in waste-to-energy and biomass projects, and industrial states attract more developers as compared to less developed states, which in turn are left behind in terms of such projects.

Although there is higher financial assistance for special category states, the policy framework does not account for local constraints like logistics and market access.

Speaking to The Secretariat, Pradeep Monga, former Senior Advisor and Policy Director, World Biogas Association, said that improving implementation performance would need a shift from capex-driven subsidies to performance-linked incentives tied to actual generation, feedstock utilisation, and emissions reduction.

Integrating carbon market revenues and co-benefits into the incentive structure would improve commercial viability. Additionally, stronger monitoring frameworks, standardised project documentation, and technical assistance windows for states and developers would address capacity constraints and reduce delays

— Pradeep Monga, former Senior Advisor and Policy Director, World Biogas Association

Monga further said that targeted and smart policy reforms could accelerate the commissioning of bioenergy projects in India.

Model National Policy Framework

Some of the much needed policy reforms, among others, may include, harmonising state policies with a model national policy framework featuring standardised tariffs, feedstock agreements, and expedited approval processes, creating single-window clearance systems with deemed approvals if timelines are exceeded, securing bankable offtake through enforceable power purchase agreements (PPAs), supporting long-term feedstock supply chains via aggregation platforms and formal contracts with municipalities, farmers, and producer organisations, and ensuring grid connectivity, along with concessional and blended financing, as well as risk guarantees to attract private investment.

The International Energy Agency (IEA) said biofuels can strengthen India’s energy security by reducing reliance on imported fuels, support economic development and job creation, especially in rural communities, and contribute to emissions reduction targets.

"India’s success in scaling up bioenergy shows what is possible when you have clear targets, predictable policies, and coordination across government,” said Fatih Birol, Executive Director, IEA. 

But for this, the Centre and states need to act in sync to boost the footprint of biogas.

The government has acknowledged the need to boost supply chains and build institutional capacity. Unless these gaps are addressed with region-specific strategies, India’s bioenergy ambitions may remain concentrated in a few regions, leaving much of the country outside the clean energy transition.

States With Strong Biogas Deployment

At the forefront is Maharashtra, which has emerged as the clear leader in biogas deployment with over 14,400 small biogas plants, along with a strong footprint in waste-to-energy and medium biogas capacity, followed by Madhya Pradesh and Gujarat, supported by stronger agricultural ecosystems and better-developed biomass markets.

States like Punjab, Haryana, and Uttar Pradesh also show strong uptake, particularly in biomass and waste-to-energy projects.