Punjab to Invest 51 bn Rupees (US$1.2 bn) in Renewable Energy by 2012

Punjab Energy Development Agency (PEDA) has recently announced it plans to invest 51 billion rupees in renewable energy by 2012. PEDA has set a goal to generate from renewable sources 10% of total energy generated in the state by then.

(For readers unfamiliar with India’s geography, Punjab is a state in north India bordering Pakistan. Economically, it’s one of the most advanced states in India with thriving agriculture and industry.)

This announcement has followed several aggressive moves by Punjab in recent months. Among them were 21 MOU’s for 250MW of “Mini” hydro-power projects (most recently with TOSS Hydro for a 20MW project).

PEDA has already invited proposals for 100MW of grid-connected solar power, and has chosen Moser Baer, PQES Inc, India Bulls Electricity and Azure Power for project(s) making up 17MW of that with a 30 year PPA. According to Bikram Singh Majithia, Punjab’s Minister for Science, Technology and Information, the agency will soon seek proposals for large-scale solar thermal plants.

In case you were wondering, Punjab’s definitely pursuing biomass too as part of its ambitious goals. And it’s no surprise for a state at the forefront of India’s agriculture sector. Agreements are already in place for 338MW of biomass power projects according to New Energy Finance. EnviTech (a German contractor) has a 30MW piece of that pie with GE supplying its Jenbacher biogas engines for the project. It’s not clear if the 147MW projects granted to Mumbai based Green Planet Energy Pvt Ltd are included in that 338MW.

No – PEDA has not left out wind energy either. In December last year (2007) it signed a MoU with Suzlon for 100MW of wind energy projects in the state.

So all these solar, biomass, wind and hydro projects added up to approximately 780 MW to 930 MW (based on whether some of these agreements are couched within other announcements or not). Based on Punjab’s announced goals of 1500MW from “non-conventional” energy, there are 700-600MW projects either yet to be granted, or I haven’t done my homework. Either way, Punjab is clearly setting a great example for other states in India to follow. Punjab’s neighboring states – Haryana and Rajasthan – have been just as aggressive. Stay tuned for more on them in upcoming posts.