Punjab to allocate 338-Mw biomass projects to private developers

The Punjab Energy Development Agency (PEDA) has finalised the allocation of 31 decentralised biomass-based power projects with aggregate capacity of 338 Mw to private developers.

The developers will set up projects having capacity of 5-20 Mw in 31 tehsils of the state on the basis of competitive bidding in line with the state's New and Renewable Sources of Energy Policy.

The state's minister for science and technology and environment, Bikram Singh Majithia, said these power projects were being set up on a build, operate and own (BOO) basis and the sector had attracted private investment of Rs 1,450 crore. 21 power projects having a total capacity of 220 Mw had been allocated to private developers, he said adding that all these projects were scheduled to be commissioned by September 2009.

In order to encourage co-generation in the industries, PEDA has commissioned 6 biomass co-generation projects with a total capacity of 39 Mw and 4 such projects of total capacity of 91 Mw were under execution and likely to be commissioned by December.

8 more co-generation biomass projects with a total capacity of 71 Mw were in pipeline and MoUs for the same would be being signed soon.

He said these power projects being environment-friendly would help in abatement of green house gases (GHG) emissions responsible for global warming.

The minister said that Punjab faces peak power shortage of 3,000 Mw and the commissioning of these projects would help in supplementing power requirement of the state by around 26 per cent through renewable energy resources.

He further said that the state government was committed to promote renewable power through private sector by providing attractive tariff and fiscal incentives for these projects in order to add 1,000 Mw capacity to the state grid through renewable resources in the next three years.

Tejinder Pal Singh Sidhu, chief executive, PEDA, said that in addition to biomass projects, PEDA had also signed MoUs for sale of power from 66 small/micro hydel projects with a total capacity of 258 Mw.

He said that with a view to give a boost to renewable energy power projects, the state government was interacting with the private developers for attracting private investment for setting up of these projects.