To promote power generation in industrial sectors, the Ministry of New and Renewable Energy (MNRE), Government of India, launched the Co-Generation Power Scheme. Under this scheme, electricity is generated using agricultural residues such as rice straw, rice husk, and bagasse as fuel. Co-generation, also known as Combined Heat and Power (CHP), refers to the simultaneous production of electricity and useful thermal energy from a single fuel source. These projects generate both steam and electricity, thereby improving overall energy efficiency. The surplus power generated is supplied to Punjab State Power Corporation Limited (PSPCL) under long-term Power Purchase Agreements (PPAs).

Advantages: -

• Higher overall energy efficiency.
• Significant energy savings through optimal fuel utilization.
• Reduction in greenhouse gas emissions and environmental pollution.
• Improved reliability and stability of energy supply.
• Flexibility in the use of different biomass and agricultural residues as fuel.
• Productive utilization of agricultural waste, helping in reducing stubble burning.
• Contribution towards sustainable and renewable energy development in the state.

Achievements: -

Co-generation power projects are being established with Central Financial Assistance (CFA) provided by MNRE, Government of India. So far, 69 co-generation power projects with a total installed capacity of 594.47 MW have been successfully commissioned in the state.