What are the highlights of the Uttar Pradesh Bioenergy Policy 2022? What are challenges in its successful implementation?

The government of Uttar Pradesh has recently launched its Bioenergy policy 2022 with twin objectives of boosting the bio economy and reducing the dependence on fossil fuels, thereby moving towards the national target of net zero by 2070.

Highlights of policy:

• It includes four biofuels, viz. Compressed Biogas (CBG), ethanol, biodiesel and bio-coal.
• Highly ambitious targets are set under the policy – Generation of 1000 tonnes per day of CBG, 4000 tonnes per day of bio-coal, 2000 km per day of bioethanol and biodiesel by 2026-27.
• The scheme will be implemented by the state’s nodal agency, i.e. Uttar Pradesh New and Modern Energy Development Agency (UPNEDA).
• Subsidy will be provided for implementation of the scheme.
• There will be a minimum one bioenergy plant in each tehsil.
• 100 percent electricity charge waiver and tax exemptions to bioenergy units.
• Land will be provided only at Rs.1 per acre to feedstock aggregators and bioenergy plants establishments.
• Incentives on purchase of equipments.
• Online portal and single window clearance.
• Coordination among state departments.

Challenges:

• A continuous and long-term feedstock supply below a fixed price is necessary for proper and healthy functioning of plants.
• Oil marketing companies procuring CBG at best prices leads to financial instability.
• Large disparity among prices of CBG and CNG.

Way forward:

The scheme is very ambitious and if implemented successfully, could serve as a role model of other states and the nation.