The Chief Minister's directions came at a meeting of the Local Government department which he chaired here, an official spokesperson said.
Amarinder said large-scale production of the biomass energy could prove to be an effective solution to the twin problems of stubble burning and the heaps of garbage that are seen to accumulate in the cities of the state.
As per the available data, the total solid waste generation in the state stands at 4,250 tons per day and the state is divided into eight clusters for effective solid waste management.
Amarinder said this centralised system could easily be used for biomass energy generation through blending of garbage with stubble, which is currently burnt illegally, thus becoming a major source of pollution.
Illegal burning of the stubble of harvested crop is extremely harmful to the environment and the authorities have failed to curb the same despite strong prohibitory measures in place.