Gujarat Sets 10% Bio-Energy Target, Eyes Industry & Cooperative Partnerships

Through this, the state aims to secure a leading position in India’s bio-power capacity. A senior official of the state energy department stated that, “The state aims to generate local employment and income through rural plants by converting agricultural residues into energy. In addition, capital assistance, land, net metering, open access and MSME support will be provided for bio-energy projects. Meanwhile, in urban areas, PPP (Public-Private Partnership) model projects similar to the ongoing waste-to-energy initiatives in Ahmedabad and Rajkot are planned to be launched in other cities.”

Trash To Energy

To enhance scientific management of municipal waste and increase the production of clean energy in urban areas, a waste-to-energy policy was implemented two years ago in Gujarat, under which project support is provided for electricity generation from municipal solid waste.

The Gujarat Energy Development Agency (GEDA) acts as the nodal agency under this policy. Land for such projects is provided on long-term lease. The policy also offers subsidies, approved tariffs, and tax incentives.

Apart from waste-to-energy, the state has created policy frameworks for biomass-based power projects and biogas plants, but changes to these provisions are currently being considered. Based on the bio-potential available in the state, agricultural residues collected from farmers could generate an estimated 1,500 MW of bio-energy. In addition, work is ongoing on biogas, bio-CNG and bio-fuels.

A GEDA official said that to promote clean fuel in rural areas, the central government has launched the Gobar-Dhan Yojana, with the aim of converting organic waste such as cattle dung and agricultural residues into biogas, compressed biogas (CBG) or bio-CNG, which can be used for cooking and electricity generation.

A total assistance of ₹37,000 is provided for setting up a biogas plant. The implementation of this scheme will be done by Banas Dairy, Sabar Dairy, Dudhsagar Dairy, Amul Dairy and the National Dairy Development Board.

Bio-Power Capacity Big Picture

India is progressing towards major transformation in the energy sector with a target to reach 50% total installed power capacity from non-fossil fuel-based sources by 2030. The use of modern bio-energy is crucial to this goal. 

India’s bio-power energy capacity has increased from 8.1 GW to 11.6 GW over the last 11 years. In 2014, there was only one CBG project with a capacity of 8 tonnes per day (TPD), which has increased to 150 projects with a cumulative capacity of 1,211 TPD as of March 2025.

As of 31 March 2025, biomass power and co-generation capacity stood at 9.82 GW, non-bagasse at 0.92 GW, and waste-to-energy capacity reached 840.21 MWeq.

The number of small biogas plants installed in the country is 51.04 lakh, and the number of medium plants is 361. The Ministry of Renewable Energy launched the National Bio-Energy Programme in November 2022, which remains operational till March 2026, with a total budget of ₹1,715 crore.

In this context, Gujarat intends to emerge as a national bio-power leader.  

Decades Of Win-Win Fuel

Bio-energy provides clean fuel, helps reduce air, water and land pollution, creates local employment opportunities, reduces energy import bills, and offers the private sector an opportunity for decarbonisation.

It also reduces expenditure on fertiliser subsidies and waste management.

Since 2018, MNRE has been running a programme to recover energy from urban, industrial, agricultural and municipal waste, under which government support is provided for setting up large biogas, bio-CNG and power plants.

Similarly, since 1990, biomass power and bagasse co-generation have been promoted, mainly used in sugar, rice and paper mills. Biogas plants have been established since 1981, used for cooking and lighting.

The central government has formulated policy schemes and guidelines such as the Biogas Programme, Bio-Energy Concessional Custom Duty Certificate (CCDC), Biomass Programme, and Waste-to-Energy Programme.

Bio-Energy Development In Gujarat

Back in Gujarat, private industrial groups and cooperative institutions have taken the lead in the sectors of compressed biogas (CBG), ethanol, bio-fertiliser and solid bio-fuel in the state.

At present, 7,200 biogas plants are operational in Gujarat. Reliance Bio Energy has set up a CBG plant in Jamnagar. In addition, there are eight to ten other industrial players.

Among cooperatives, Amul’s contribution is significant. It has developed a national model in the bio-energy sector and has also ventured into bio-ethanol. Eighteen unions of Amul are setting up 30 CBG plants across the state.

Likewise, Banas Dairy has also launched CBG plants. Gujarat Biomass Energy Development Agency and Gujarat Energy Development Agency provide project subsidies and other incentives.