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Indian Biogas Association (IBA) has urged the Ministry of Petroleum and Natural Gas to provide a concessional electricity tariff for compressed biogas (CBG) plants to boost the clean energy transition. In a comprehensive submission to the ministry, IBA stressed that the cost of electricity is a significant operational expense, averaging 30 per cent of overall Operating Expenses (OPEX), ranging between 20 per cent and 48 per cent, based on the feedstock used and the scale of the plant.

IBA has suggested that the government should grant concessional electricity rates to CBG plants, which are at a disadvantage due to high industrial electricity charges that account for as high as 48 per cent of their running costs. The association's detailed cost study indicates that at an average industrial tariff of Rs 7 per kWh, electricity takes up a significant portion of the overall operating costs of commercial-scale CBG plants, like 34 per cent in paddy straw-based plants, 28 per cent in press mud-based plants, 19 per cent in cow dung-based plants, and as high as 48 per cent in Municipal Solid Waste (MSW)-based plants.

IBA's suggestion to the ministry to shift from applicable industrial tariffs for electricity (average rate of Rs 7 per kWh) to domestic tariffs (Rs 4.5 per kWh) would provide significant cost savings across all categories of feedstocks, and this tariff reform would make the sector much more operationally viable. The grouping underscored that high industrial tariff rates now function as a structural hindrance, having a direct bearing on profit margins and cash flows, especially in the most important formative years, when projects are consolidating. Financial pressure deters new market players from entering and hinders the expansion of existing units. IBA said the concessional tariff offer is set to enhance sector competitiveness, trigger private participation, and facilitate smoother integration of CBG into India's energy mix, supporting the government's wider clean energy transition goals.