Biomass has always been an important energy source for the country considering the benefits it offers.  Biomass source of energy power projects are renewable, widely available, carbon-neutral and have the potential to provide significant employment in the rural areas.  Biomass is also capable of providing firm energy with high load factors / efficiency.  Andhra Pradesh is one of leading state for encouraging biomass power projects in the India. Till date, about 39 biomass power projects are commissioned in the state, which is the largest in the country.

Present applicable tariff for biomass power projects in Andhra Pradesh is Rs. 4.00 per unit which is expected to be increased to Rs. 5.50 per unit.