Punjab Recommissions 10 MW Biomass Power Plant, Boosting Green Energy and Rural Economy

The successful recommissioning of the 10 MW Biomass Power Plant at Village Jalkheri, District Fatehgarh Sahib, was announced today by Power Minister S. Harbhajan Singh E.T.O., who also highlighted the plant's important economic and environmental benefits for Punjab.

June 1992 saw the initial commissioning of PSPCL's 1x10MW Biomass Plant in Village Jalkheri (Dist. Fatehgarh Sahib). The plant was leased to M/s Jalkheri Power Plant Ltd (JPPL) in July 2001 after it was in operation until July 1995. After being put back into service in July 2002, the facility ran until September 2007. Attempts were made in 2012 to bring the project back up and license a private developer to operate it on a lease basis for a predetermined amount of time. The facility was put out again in 2018 with an ROT lease.

On June 21, 2024, the refurbished plant was recommissioned and operations were formally launched. It is made to produce power entirely from paddy straw and makes use of boilers using the most recent technology from Denmark. This cutting-edge biomass plant will use about one lakh tons of paddy straw a year, which will assist the state government in reducing the issue of stubble burning in Punjab, which covers almost fifty thousand acres. About 400–500 people will be employed directly or indirectly as a result of this project, which will promote regional economic growth. The project has several advantages, such as protecting the environment by reducing air pollution from burning rice straw in fields, promoting sustainable energy by lowering reliance on fossil fuels, and making efficient use of Punjab's plentiful supply of paddy straw. This plant's Power Purchase Agreement (PPA) is set to run for 20 years, beginning on June 21, 2024, after which Punjab State Power Corporation Limited (PSPCL) would acquire ownership of the facility. Following reverse bidding in the most recent tendering procedure, the final quoted cost was discovered to be Rs. 5.84/KWH; however, it has now been further lowered by Rs. 0.07/KWH, saving Rs. 10 crores over the course of the lease. 2019 saw the signing of the Power Purchase Agreement and Lease Agreement with M/s SAEL, as well as the transfer of the plant to SAEL for renovations that same year. PSPCL will buy all of the electricity produced by this plant at a negotiated tariff of Rs. 5.77/-per unit (Rs. 2.27 per KWH, which is a fixed cost component that will stay the same for the duration of the lease, plus Rs. 3.50 per KWH, which is a variable cost component that will increase by 5% annually).

The project's many advantages were underlined by Minister Harbhajan Singh E.T.O.: "This initiative not only increases our capacity for producing green energy and creates jobs, but it also offers a solution to the ongoing problem of stubble burning." It is entirely consistent with our government's pledge to safeguard the environment, promote economic expansion, and provide energy security."