UP TO DATE INFORMATION REGARDING BIOMASS POWER PROJECTS

A total of 11 Biomass power projects of cumulative capacity 97.50 MW are commissioned and in operation in the state which utilize 8.8 Lac Metric ton of paddy straw per annum (Table - I). Two Biomass power project of 14 MW is under execution which shall be commissioned by June 2021 and shall utilize 1.26 Lacs Metric ton of paddy straw per annum (Table- II).

Approval of scheme has been sought from MNRE,GOI for Viability Gap Funding for 300 MW capacity Paddy straw based Biomass power projects @ Rs 5 Cr/MW and Hybrid Solar Biomass power projects , for which Hon'ble Chief Minister Govt. of Punjab has already written a D.O letter dated 08.01.2020 to Union Minister of State (IC), Ministry of Power and New and Renewable Energy to grant Viability Gap Fund @ Rs. 5.00 Crore per MW for Biomass Power Projects and Rs. 3.5 Crore per MW for Biomass Solar Hybrid Power Projects in a phased manner. The existing high tariff of electricity from Biomass plants is unattractive for Power DISCOM and it is ready to purchase power from Biomass Projects based on paddy straw at a maximum of Rs. 5/kwh with a view to address the critical issues of stubble burning and pollution in the state.

Another D.O letter dated. 11.06.2020 from Additional Chief Secretary, Department of NRES, Govt. of Punjab has been written to Secretary, MNRE, Govt. of India requesting to allocate 100 MW standalone Biomass Power Projects and 25 MW Biomass Solar Hybrid Power Projects with CFA of Rs. 3.00 Crore Per MW.  The approval and sanction of this VGF scheme from MNRE, Govt. of India is still awaited.

A DO Letter dated 07.08.2020 was sent to Dr. Bhure Lal, Chairman, Environment Pollution (Prevention and Control) Authority form ACS, NRES, Govt. of Punjab with regard to Viability Gap Funding (VGF) for Biomass Power Projects and seeking intervention in this regard at the level of MNRE, Govt. of India. VGF shall help in reduction of tariff to Rs 5/Kwh of Biomass power plants and shall also lead to utilization of surplus paddy straw in the state, open burning of which is creating huge environmental problems for the State. This shall also provide additional income to farmers, employment opportunities both skilled and unskilled for rural youth and Private sector investment of more than 2500 crores in the RE sector in the state.

It will take two years from the date of signing of PPA for this 100 MW capacity Biomass power projects to be commissioned if GOI approves and sanctions the VGF proposal and these projects post commissioning shall be able to utilize 1 Million tons/annum of paddy straw.

Another DO letter dated 04.09.2020 was sent to Secretary, MNRE, GOI by ACS, NRES requesting approval of VGF proposal for these projects, so that these projects can be set up in the state. MNRE, GOI is yet to approve and sanction this Biomass power scheme with VGF proposed under concept paper @Rs 3 Cr/MW.

TABLE:- I

DETAIL OF BIOMASS POWER PROJECTS COMPLETED / COMMISSIONED USING PADDY STRAW (97.50 MW)

TABLE-II
DETAIL OF UNDER EXECUTION BIOMASS POWER PROJECTS (14 MW)