Bioenergy Hailed as MSME Decarbonisation Engine

Minister of State for New and Renewable Energy, Shripad Yesso Naik, declared bioenergy a critical component in India's clean energy transition and the decarbonisation of Micro, Small, and Medium Enterprises (MSMEs). Speaking on Friday, January 16, 2026, Naik highlighted the sector's role in bolstering national energy security, enhancing rural livelihoods, and driving waste management initiatives. Bioenergy's contribution extends beyond electricity, supporting broader climate action goals.

The MSME Energy Challenge

The minister identified industrial decarbonisation, particularly within the MSME sector, as a significant challenge. These enterprises account for nearly one-third of India's manufacturing output and employ millions. However, a substantial portion of their energy demand for steam and heat is still met using fossil fuels such as coal and furnace oil. Transitioning this segment to clean, renewable thermal energy is deemed essential for national objectives.

Biomass: A Scalable Indian Solution

Naik emphasized that biomass-based green steam and heat solutions offer a practical, scalable, and India-specific pathway. India possesses abundant agricultural residue, animal waste, and municipal solid waste, presenting a unique opportunity for waste-to-value conversion. This approach can significantly reduce emissions and generate additional income for farmers and rural entrepreneurs.

Government Initiatives Fueling the Transition

The government is actively supporting this shift through integrated initiatives like the National Bioenergy Programme, SATAT, and GOBARdhan. These programs aim to facilitate the use of biomass briquettes and pellets, support non-bagasse-based cogeneration, and promote industrial applications. Decentralised solutions tailored for MSMEs are a key focus, with linkages being strengthened to the National Green Hydrogen Mission.

Secretary Backs Broad Deployment

Santosh Kumar Sarangi, Secretary at the Ministry of New and Renewable Energy (MNRE), affirmed that biomass-based applications have extensive deployment potential across the country. He pointed to municipal solid waste-to-energy projects and compressed biogas as examples that bolster livelihoods and decentralised energy access, reinforcing bioenergy's role as a clean energy pillar.

Strengthening Supply Chains and R&D

Sarangi also highlighted the need to bolster biomass supply chains, enhance research and development, and promote multi-fuel boiler technologies. These improvements are crucial for ensuring year-round fuel availability and cost-effective operations for MSMEs. International collaboration, particularly with Germany on advanced boiler technologies, was encouraged to accelerate adoption.

Collaboration Across the Value Chain

Naik stressed that technological advancement alone is insufficient. He called for close collaboration among all stakeholders, from biomass suppliers and aggregators to logistics providers, manufacturers, financiers, and regulators. MSMEs require confidence in fuel availability, price stability, and operational reliability, underscoring the importance of platforms for trust-building and co-creation of solutions.