ABSTRACT
In developing countries, governments are promoting power generation from various agro-industrial waste and municipal solid waste streams to improve access to energy and ensure long-term security of power supply. The recent high energy prices, coupled with environmental and financial incentives such as carbon financing and modern biomass energy options such as biomass-based energy generation, are becoming economically attractive in low-income countries. Policies, regulations and institutions play crucial roles in the successful implementation of these business models through appropriate national policies, programs and fiscal incentives. A number of domestic and international programs to support bagasse-based cogeneration in India were launched which promoted the advancement of co-generation plants in India. These support programs include extension of loans for cogeneration by the Asian Development Bank through the Indian Renewable Energy Development Agency, research and development support, accelerated depreciation of equipment, a five-year income tax holiday and excise and sales tax exemptions by the Ministry of Non-Conventional Energy Sources.
