India Has 28.44 GW Bioenergy Power Potential, Installed Capacity at 11.75 GW: CareEdge Advisory
Webinar Highlights Opportunities in Agricultural Waste-to-Energy, Biomass Supply Chains and Long-Term Financing to Accelerate Sector Growth
India has an estimated bioenergy power generation potential of 28.44 GW, but its installed capacity stood at 11.75 GW as of March 31, 2026, representing around 41% of the available potential, according to CareEdge Advisory. Discussions at a webinar hosted by CareEdge Ratings highlighted the sector’s role in strengthening energy security, supporting decarbonisation and improving the utilisation of agricultural residues.
With India generating approximately 750 million tonnes of biomass annually, surplus agricultural residue offers opportunities for expanding bioenergy generation. However, converting this resource into commercially viable capacity will require organised feedstock supply chains, supportive policies and access to long-term project financing.
Bagasse Cogeneration Accounts for Over 80% of Installed Capacity
According to CareEdge Advisory, India's installed bioenergy capacity reached 11.75 GW as of March 31, 2026, against an estimated potential of 28.44 GW.
Bagasse cogeneration accounts for more than 80% of the installed capacity, highlighting the contribution of the sugar industry to the sector.
Despite capacity additions, bioenergy generation remains dependent on the quality and timely availability of feedstock, technology and operational efficiency. Timely project completion and the financing mix also influence project viability and returns for developers.
Agricultural Waste-to-Energy Offers Decarbonisation Opportunities
CareEdge Advisory highlighted the potential of agricultural waste-to-energy to address waste management challenges while contributing to green power generation and India's Net Zero goals.
Unlike intermittent renewable energy sources, bioenergy can provide dispatchable power while converting agricultural residues, municipal solid waste and other organic waste into useful resources.
Beyond electricity generation, emerging applications across the biomass value chain include compressed biogas (CBG), ethanol, methanol, sustainable aviation fuel (SAF) and biochar.
Webinar Highlights Measures to Accelerate Bioenergy Adoption
The webinar opened with a presentation by Nitu Singh, Associate Director, CareEdge Advisory, and Mihir Shetye, Lead Analyst, CareEdge Advisory. The presentation covered India's bioenergy potential, growth drivers, sector challenges and measures required to promote adoption.
It highlighted the complementary role of dispatchable bioenergy alongside intermittent renewable sources and the scope for further capacity expansion.
The presentation identified several areas requiring attention to scale up the sector:
- Financial support measures
- Biomass-focused renewable energy targets
- Bankable procurement frameworks
- Regulatory reforms
- Sustainable biomass supply chains
- Technological advancement
CareEdge Advisory Releases Report on India's Bioenergy Transition
During the webinar, Tanvi Shah, Senior Director, CareEdge Advisory, released a report titled Fields of Fuel: Architecting India's Bioenergy Transition.
The report examines India's bioenergy capacity outlook, biomass availability, investment opportunities and the ecosystem enablers required to expand the sector.
A subsequent panel discussion was moderated by Tanvi Shah and featured:
- Lt Col Monish Ahuja (Retd), Chairman and Managing Director, Punjab Renewable Energy Systems Private Limited (PRESPL)
- Y. B. Ramakrishna, Senior Vice President, Indian Federation of Green Energy, and former Chairman of the Working Group on Biofuels, Ministry of Petroleum and Natural Gas, Government of India
- Biswajit Dutta, Vice President – Business Development and Corporate Affairs, SAEL Industries Ltd.
The discussion covered policy perspectives, growth enablers and the ecosystem requirements for supporting bioenergy development in India.
Resilient Biomass Supply Chains Identified as a Key Requirement
A central theme of the panel discussion was the need to establish resilient and decentralised biomass supply chains. Panellists highlighted mechanised collection, aggregation, storage and improved resource mapping as important requirements.
They also emphasised that the availability of feedstock alone would not ensure project viability. Transparent pricing mechanisms, assured offtake, long-term power purchase agreements, targeted financial assistance and access to long-term patient capital were identified as critical factors for sector growth.
The discussion further highlighted the need for coordinated central and state-level policy frameworks, stronger institutional accountability and appropriate incentives across the value chain.
Bioenergy Capacity Projected to Reach 15.50 GW by FY32
CareEdge Advisory estimates that India's bioenergy capacity could reach 15.50 GW by FY32, provided challenges related to feedstock aggregation, logistics, project financing and long-term offtake arrangements are effectively addressed.
With only 41% of the estimated 28.44 GW potential currently installed, the sector has scope for further development.
According to CareEdge Advisory, sustainable biomass supply chains, bankable procurement frameworks, regulatory reforms and financial support measures could help enable the projected expansion.