The new policy will help the state to produce 500 MW power from biomass and 100 MW from solar power sector, he said here.
Badal reviewed on-going renewable energy projects and constituted a high-level committee to give a final touch to the new policy on renewable energy, officials said.
Renewable Energy minister Bikramjit Singh Majitha said Punjab is replicating the Gujarat model especially for solar power in which solar panels have been installed on canals to generate power.
Badal said farmers could earn an additional income of Rs 10,000 per acre with the commencement of biomass plants in the state, using rice husk as input to generate power.