The National Bio Energy Programme 2022

Policy Update

Gayathri Pramod

The National Bioenergy Programme is a significant initiative by the Government of India to promote the sustainable use of biomass and other renewable resources for energy production. This program aligns with India’s climate goals and supports rural development, waste management, and energy security. Bioenergy, by definition, refers to energy derived from organic materials like agricultural residues, animal waste, and other biodegradable materials. It is considered a clean, renewable source of energy that can help reduce reliance on fossil fuels while addressing environmental concerns. The National Bioenergy Programme was launched under the Ministry of New and Renewable Energy (MNRE) to unify and enhance various existing bioenergy schemes. The goal is to provide a focused approach to developing biomass energy systems in India. It supports the development of biogas, biomass power, and advanced biofuels. These technologies can potentially transform agricultural and organic waste into valuable energy sources. The program is structured into three sub-schemes: the Waste to Energy Programme, the Biomass Programme, and the Biogas Programme. Each component targets a specific aspect of bioenergy development and works towards building an ecosystem where waste is efficiently converted into energy.

Yearly, India produces vast agricultural residue, which includes crop waste like paddy straw, sugarcane bagasse, and wheat husks. Much of this residue is either burned in the open, contributing to severe air pollution, or left to decay. The National Bioenergy Programme encourages farmers and entrepreneurs to use this biomass to generate power, heat, and biofuels, etc. This will help to reduce pollution. This creates income-generating opportunities in rural areas and significantly contributes to environmental protection. By converting biomass into energy, the programme also addresses the issue of stubble burning, especially in northern states like Punjab and Haryana.

Significance

India’s rapid urbanization and industrial growth have led to a substantial increase in waste generation. Cities across the country collectively produce tens of thousands of tons of solid and liquid waste daily. Much of this waste is in overburdened landfills or left untreated, leading to severe health hazards, groundwater contamination, and unbreathable air, especially in densely populated areas. The Waste to Energy (WtE) component of the National Bioenergy Programme addresses this growing crisis by promoting the scientific conversion of waste into energy. Technologies such as biomethanation, incineration, gasification, and pyrolysis are central to this approach. These technologies help convert municipal solid waste, industrial effluents, sewage sludge, and agro-industrial waste into usable forms of energy, such as electricity, biogas, and biofuels. The programmeencourages a shift in perception and practice by treating waste as a valuable resource rather than a burden. The recovered energy can be fed into the national power grid, used by local industries, or even supplied to households, contributing to energy self-sufficiency. At the same time, this reduces the pressure on landfills, lowers harmful emissions, and improves sanitation in urban and peri-urban areas.

Promoting Rural Energy Access and Clean Cooking

In rural India, access to clean and affordable energy remains challenging. A significant portion of the rural population still relies on firewood, crop residue, or kerosene for cooking and heating—sources that are not only polluting but also hazardous to health, particularly for women and children. The Biogas Programme, an essential pillar of the National Bioenergy initiative, directly addresses this issue. It promotes installing small-scale biogas plants in rural households, dairy farms, and community centers. These plants convert organic waste—including cow dung, kitchen scraps, and agricultural residues—into biogas through anaerobic digestion. This biogas can be used for cooking, lighting, and powering small agricultural machinery.

In addition to offering a cleaner and more reliable energy source, the byproduct of this process, biogas slurry, is a high-quality organic fertilizer. This enhances soil fertility and supports sustainable agriculture, creating a self-reinforcing cycle of productivity and sustainability. By replacing firewood and LPG with locally produced biogas, the programme reduces household energy costs, protects forests from over-exploitation, and reduces indoor air pollution. Women benefit significantly, as they spend less time collecting fuelwood and cooking in smoke-filled kitchens, improving their health and freeing time for education, income-generating activities, or community involvement.

Emphasis on Decentralized and Community-Based Energy Systems

One of the standout features of the National Bioenergy Programme is its strong focus on decentralized energy solutions. Bioenergy systems can be developed and operated locally, unlike traditional thermal power plants, which require complex infrastructure and long-distance transmission lines. These systems are especially suitable for remote or underserved areas with poor or non-existent grid connectivity. Decentralized energy production significantly reduces transmission losses and makes energy more accessible and reliable for communities in remote villages and agricultural regions. It also promotes local ownership and encourages community participation in energy generation and management. Villages that produce their energy using local biomass become less dependent on external sources and more resilient to fuel price fluctuations or power shortages.

Furthermore, local energy generation opens up opportunities for rural entrepreneurship. Farmers, self-help groups, cooperatives, and youth-led enterprises can all participate in bioenergy projects—whether by supplying feedstock, operating the plant, or maintaining equipment. This democratizes energy and builds social and economic capital at the grassroots level. The National Bioenergy Programme recognizes the importance of these stakeholders. It actively encourages their involvement, ensuring that the program’s benefits are shared equitably and that local communities have a say in meeting their energy needs.

Environmental and Climate Benefits

The environmental benefits of bioenergy are far-reaching and multidimensional. When left unmanaged, agricultural waste is either burned in fields, causing air pollution and smog, or dumped in landfills, where it decomposes and releases methane, a potent greenhouse gas. Similarly, untreated organic waste in urban settings contaminates water and soil. The National Bioenergy Programme mitigates these environmental hazards by providing scientific, controlled, and sustainable alternatives for biomass utilization. When waste is converted into energy through advanced processes, emissions are drastically reduced, and environmental risks are minimized. Moreover, bioenergy systems contribute to carbon neutrality. Since the CO₂ released during biomass combustion or biogas utilization is roughly equivalent to the amount absorbed during biomass growth, the overall impact on atmospheric carbon levels is minimal. Additionally, integrating bioenergy with afforestation, agroforestry, and regenerative farming practices enhances carbon sequestration, helping India move closer to its climate commitments. In this way, the programme serves as an energy solution and a key instrument in India’s efforts to combat climate change, air pollution, and ecological degradation.

Decentralised and Community-Based Energy System

The National Bioenergy Programme not only promotes sustainable energy but also contributes significantly to job creation and skill development. The initiative provides opportunities for farmers, entrepreneurs, and skilled workers in the renewable energy sector, contributing to economic growth and Development. The Biomass Programme within the broader National Bioenergy Programme focuses on biomass power and cogeneration projects in sugar, paper, and textiles. These industries generate significant quantities of biomass waste, which can be used to produce electricity or steam. Co-generation, which refers to the simultaneous production of electricity and useful heat, can significantly enhance energy efficiency. The government provides financial incentives for setting up such projects, including capital subsidies, viability gap funding, and assistance with project development.

The bioenergy sector has emerged as a significant source of employment, particularly in rural and semi-urban areas where job opportunities are often scarce. Every stage of the bioenergy value chain—from the collection and transportation of biomass to the operation and maintenance of bioenergy plants—requires skilled and semi-skilled labor.

By promoting bioenergy infrastructure, the programme supports creating green jobs across various categories. These include:

Biomass aggregators and transporters
Biogas plant operators and technicians
Organic fertilizer marketers
Waste management professionals
Construction and installation workers

Furthermore, training and capacity-building programs are integral to the scheme. The MNRE collaborates with technical institutions and NGOs to conduct skill development workshops and hands-on training sessions. These initiatives ensure that the local workforce is equipped to handle the technical aspects of plant operation and maintenance, ensuring long-term viability.

These opportunities will benefit women and youth, in particular. With proper training and financial support, they can become bioenergy entrepreneurs, contributing to gender empowerment and economic inclusion.

Innovation and Private Sector Participation

The success and sustainability of the National Bioenergy Programme depend significantly on innovation and private-sector involvement. The government actively encourages startups, small businesses, and technology developers to participate in the bioenergy ecosystem. Innovations in plant design, digester efficiency, waste sorting technologies, and biofuel processing have already led to cost reductions and performance improvements. These technological advances are critical for scaling up the sector and making bioenergy solutions more economically viable for diverse applications. The programme offers promising enterprises grants, technical assistance, and incubation support. It also fosters collaborations between private firms, research institutions, and public sector bodies, creating an environment conducive to experimentation and entrepreneurship. Simplified regulatory frameworks, fast-track project approvals, and access to clean energy finance further incentivize private investment in bioenergy. These measures help transform the sector from a government-subsidized initiative into a self-sustaining industry driven by market dynamics and social value.

Financial Incentives and Support Mechanisms

Recognizing the diversity of bioenergy technologies and the varying capacities of stakeholders, the National Bioenergy Programme provides tailored financial support across project types and scales. The government offers capital subsidies for small-scale biogas plants in rural homes to reduce upfront costs. These subsidies make clean cooking and lighting solutions accessible to families who might otherwise be unable to afford them.

For medium and large-scale projects, such as biomass gasification units, municipal waste-to-energy plants, or bio-CNG production facilities, the programme provides:

Performance-based incentives
Viability gap funding (VGF)
Soft loans and interest subvention schemes

The MNRE partners with national banks and rural financial institutions to extend credit facilities to bioenergy entrepreneurs and developers. This blended approach of grants, loans, and guarantees ensures that financial constraints do not hinder the sector’s growth.

Public Awareness and Community Engagement

Beyond financial and technical support, the programme strongly emphasizes awareness-building and education. Public acceptance and community involvement are essential for the long-term success of bioenergy initiatives. The government conducts awareness campaigns through various media channels, exhibitions, school outreach programs, and local community events. These campaigns aim to:

Highlight the health and environmental benefits of bioenergy
Demonstrate cost savings from renewable energy use
Showcase successful models of biogas and biomass usage
Encourage sustainable waste segregation at the household level

Women are given special attention in these outreach efforts, as they are often the primary users of cooking energy and key influencers in household decision-making. The programmeensures inclusivity and effectiveness by involving them in planning, training, and plant operations.

Supporting India’s Climate and Sustainability Goals

The National Bioenergy Programme is instrumental in helping India achieve its Nationally Determined Contributions (NDCs) under the Paris Agreement. The country has pledged to reduce its emissions intensity by 45% (from 2005 levels) and increase its non-fossil fuel power capacity to 50% by 2030. Bioenergy, with its dual potential to reduce methane emissions and replace fossil fuels, is central to these goals. It complements other renewable energy sources like solar and wind, offering a stable, dispatchable energy option that is especially valuable for grid stability and off-grid solutions. Moreover, by converting waste into energy and resources, the programme supports the circular economy model—keeping materials in use for as long as possible, recovering value from waste, and minimizing environmental impact.

Policy Alignment and Institutional Coordination

Inter-ministerial coordination is critical for a programmeof this scale and scope to succeed. The MNRE works closely with key ministries such as:

Ministry of Agriculture (for crop residue and manure utilization)
Ministry of Housing and Urban Affairs (for urban waste-to-energy integration)
Ministry of Environment, Forest and Climate Change (for emissions regulation and green norms)
Ministry of Rural Development (for rural electrification and employment generation)

The programme is also aligned with flagship national missions like:

Swachh Bharat Abhiyan (Clean India Mission)
National Mission on Sustainable Agriculture (NMSA)
Atmanirbhar Bharat Abhiyan (Self-Reliant India Campaign)

This convergence ensures that resources are used efficiently, goals are shared across departments, and bioenergy is embedded in India’s broader Development and sustainability strategy.

Challenges in the Implementation of the National Bioenergy Programme

While the National Bioenergy Programme holds tremendous promise, its implementation is not without significant hurdles. Despite the robust policy framework and ambitious goals, the ground reality presents various challenges, from technical and infrastructural limitations to socioeconomic and behavioral factors. These obstacles not only slow down the progress of individual projects but also impact the overall scalability and sustainability of the program.

Technical Constraints and Operational Inefficiencies

One of the most persistent challenges in bioenergy deployment lies in technology suitability and adaptability. Many bioenergy systems—particularly in rural and semi-urban areas—face technical limitations due to inconsistent feedstock quality, inadequate biomass pre-treatment, and poor equipment design. These issues often result in lower energy yields, frequent breakdowns, and high maintenance costs. Moreover, many technologies used, especially for waste-to-energy plants or biomass gasifiers, are not continually optimized for Indian conditions. High moisture content in biomass, mixed municipal waste streams, and irregular waste composition can reduce system efficiency. As a result, many plants operate below capacity or shut down prematurely due to mechanical failures or poor returns. Another challenge is the lack of skilled technicians and plant operators. Even when the technology is available, the human resources required to install, run, and maintain it efficiently are sometimes missing, particularly in remote areas. This leads to dependency on external experts, raising project costs and reducing self-sufficiency.

Logistical Complexities and Feedstock Challenges

The success of bioenergy plants, particularly those based on biomass and agricultural residues, depends heavily on a steady, reliable, and affordable feedstock supply. However, biomass collection, transportation, and storage present severe logistical difficulties in many parts of the country. Agricultural residues—such as paddy straw, sugarcane bagasse, or cotton stalks—are seasonal. Their availability fluctuates depending on harvest cycles, local cropping patterns, and climatic conditions. This seasonal nature of biomass availability makes year-round plant operation difficult unless long-term storage solutions are in place. Storage itself brings additional challenges. Biomass is bulky and susceptible to degradation, especially in humid climates. Ensuring proper drying, storage infrastructure, and pest control increases project complexity and operating costs. Another growing concern is the competition for biomass from other industries. Brick kilns demand residues like sugarcane bagasse and rice husk, cattle feed producers, and composting units. This rising competition leads to price volatility and affects the economic viability of bioenergy projects, especially those that rely on market-purchased feedstock instead of community-sourced waste.

Waste Segregation and Urban Challenges

In urban settings, waste segregation at the source remains one of the most significant barriers to the efficient functioning of waste-to-energy (WtE) plants. Most Indian cities still lack proper waste management infrastructure, and despite awareness campaigns, households and commercial establishments often fail to separate organic, recyclable, and hazardous waste. As a result, municipal solid waste collected by local bodies is usually a mixed stream contaminated with plastic, glass, metals, and other non-biodegradable materials. Processing this mixed waste requires expensive sorting machinery and leads to low energy conversion efficiency. Contamination also causes damage to WtE plant equipment, increases emissions, and raises environmental compliance costs.

Additionally, land acquisition and regulatory approvals for setting up urban WtE plants can be slow and complex. Public resistance due to concerns about odor, air pollution, and property devaluation often delays or blocks projects. Local opposition is especially strong when the plant’s benefits—like electricity generation or employment—are not directly visible to the community.

Awareness and Behavioural Barriers

Lack of public awareness is a subtle but profound obstacle to bioenergy adoption. Many potential beneficiaries—especially in rural areas—are still unaware of clean energy alternatives like biogas’s long-term economic and health benefits. People often view bioenergy systems as complex, unreliable, or unnecessary, especially when traditional fuel sources like firewood or coal are freely available. Past experiences with poorly implemented projects compound this skepticism. In the past, several government-subsidized biogas plants were installed without adequate training or follow-up maintenance, leading to breakdowns and abandonment. These experiences have created mistrust in the system, making it harder to encourage community participation and investment in new installations. Overcoming these behavioral and cultural barriers requires more than just policy announcements—it calls for consistent, localized outreach, demonstration projects, and the active involvement of community leaders and women’s groups, who can serve as trusted advocates for change.

Financing and Economic Constraints

Although the government offers subsidies, incentives, and concessional loans under the National Bioenergy Programme, access to finance remains a bottleneck, especially for small entrepreneurs and rural households. Banks and financial institutions often view bioenergy projects as high-risk due to their long gestation periods and uncertain returns. Many rural beneficiaries lack credit histories, collateral, or financial literacy, making it difficult to secure loans for biogas plants or other energy solutions. For larger industrial projects, navigating the complex funding processes, meeting eligibility criteria, and dealing with bureaucratic delays adds to the challenge. The absence of robust business models compounds the problem. Some bioenergy projects struggle to generate enough revenue to cover operational costs, particularly when feedstock prices or output demand are low. Without clear market linkages and guaranteed energy off-take agreements, private investment in bioenergy remains limited.

Institutional Coordination and Policy Alignment

The successful implementation of the National Bioenergy Programme requires coordination between multiple ministries and agencies, including the Ministry of New and Renewable Energy (MNRE), the Ministry of Environment, the Ministry of Urban Affairs, and state-level departments of Agriculture and Rural Development. However, in practice, institutional coordination is often weak. Conflicting mandates, overlapping responsibilities, and bureaucratic silos slow down decision-making and lead to duplication of efforts. Delays in policy approvals, lack of clarity in incentive mechanisms, and inconsistent enforcement of renewable energy obligations further weaken programme momentum. At the local level, urban municipal bodies and panchayats may lack the technical expertise or administrative capacity to implement bioenergy projects effectively. Capacity-building programs are essential to ensure local institutions can support project planning, monitor progress, and promptly resolve on-ground challenges.

Addressing the Challenges: The Way Forward

Despite these hurdles, the government and its partners are taking a proactive and multi-pronged approach to address the implementation challenges of the National Bioenergy Programme.

Research and Development are being prioritized to improve the performance and affordability of bioenergy technologies. Collaborations with IITs, agricultural universities, and global research centers are focused on creating region-specific solutions that are robust, low-cost, and easy to maintain.
Digital monitoring systems are being introduced to track biomass availability, measure plant efficiency, and calculate environmental impact in real time. These tools improve transparency, support better planning, and help identify problems early.
Pilot projects and demonstration units test new models and build public confidence. By showcasing bioenergy’s economic and environmental benefits, these pilots help encourage adoption at a broader scale.
The emphasis on community participation is also growing. When local people are involved in planning, decision-making, and sharing benefits from the start, the chances of long-term success are significantly higher. Involving self-help groups, farmer cooperatives, and women-led initiatives ensures greater accountability and sustainability.
The government is also working to streamline financial mechanisms, simplify procedures for obtaining loans and subsidies, and promote innovative financing models like pay-as-you-go, energy-as-a-service, and carbon credit trading.

Bioenergy and India’s Leadership in Global Energy Transition

India stands at a unique crossroads in the global energy landscape. With its enormous agricultural base, dynamic industrial sector, and growing demand for clean energy, the country is ideally placed to lead the bioenergy revolution. The National Bioenergy Programme represents a domestic energy strategy and a model for other developing nations seeking to integrate energy access with environmental sustainability. As the world accelerates toward a low-carbon future, bioenergy offers a flexible, scalable, and inclusive pathway for energy transition. Unlike solar and wind, which are intermittent and location-dependent, bioenergy can offer round-the-clock power, act as a storage solution, and serve multiple sectors—from agriculture and transport to waste management and rural development. India’s experience in integrating bioenergy into mainstream policy and rural development programs can serve as an exportable model of sustainable development, creating economic opportunities, mitigating climate change, and strengthening energy security.

Conclusion: A Pathway to a Sustainable Future

In conclusion, the National Bioenergy Programme is more than a renewable energy policy—it is a transformational initiative integrating clean energy, rural development, waste management, climate action, and technological innovation. Despite the real and substantial challenges in its implementation, the programme remains a cornerstone of India’s strategy to build a self-reliant, resilient, and sustainable future. With continued government support, enhanced public awareness, greater private sector participation, and strong community ownership, the programme has the potential to transform India’s energy landscape. It can turn waste into wealth, empower rural communities, create thousands of green jobs, and help India lead by example on the global stage in the fight against climate change.

References

Ministry of New and Renewable Energy (MNRE). (n.d.). Bio-Energy. Government of India. April 20, 2025, from https://mnre.gov.in/en/bio-energy/

Press Information Bureau (PIB). (2022, November 2). MNRE initiates National Bio Energy Programme for 2021–22 to 2025–26. Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=1885073

International Energy Agency (IEA). (2022). National Bioenergy Programme. April 20, 2025, from https://www.iea.org/policies/17413-national-bioenergy-programme

Indian Renewable Energy Development Agency (IREDA). (n.d.). National Bio Energy Programme. April 20, 2025, from https://www.ireda.in/national_bio_energy_Program

Biogas Web Portal – MNRE. (n.d.). About the Programmes. April 20, 2025, from https://biogas.mnre.gov.in/public/about-the-programmes

About the Authors: The article is written by Ms. Gayathri Pramod Research Intern at IMPRI. She is a final year PhD student specialized in West Asia.

Acknowledgement: I extend my sincere gratitude to each and every one who guides me through this process, especially Dr. Arjun Kumar and Aasthaba Jadeja.

Disclaimer: All views expressed in the article belong solely to the authors and not necessarily to the organization.