Punjab Govt: This innovative move is set to enhance renewable energy generation while preserving agricultural land.

In a major push towards sustainable development and clean energy, the Punjab government has announced the establishment of a 40 MW canal-top solar photovoltaic project, utilizing stretches of the state’s irrigation canals. This innovative move is set to enhance renewable energy generation while preserving agricultural land.

Under this initiative, the Punjab Energy Development Agency (PEDA) will lease the canal space at a nominal rate of Rs 1.5 lakh per megawatt per annum. The solar power project will follow the Build, Operate, and Own (BOO) model and will be supervised by PEDA. The electricity generated will be sold to the Punjab State Power Corporation Limited (PSPCL) at a competitive rate of Rs 3 per unit, pending regulatory approvals.

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With over 1,400 MW of installed solar capacity, Punjab is aggressively working toward its renewable energy target of 3,000 MW by 2030. This aligns with India’s national mission of achieving 500 GW of clean energy by the same year. The canal-top model not only increases solar output but also avoids the use of valuable agricultural land, ensuring dual benefits—clean energy and continued irrigation.

The Water Resources Department will retain ownership of the canal land and will collect a cess of 1.5 paise per unit of electricity generated. This ensures the sustainable use of infrastructure without compromising the department’s core responsibilities.

The bidding process is open to developers with a minimum capacity of 1 MW, inviting private participation and innovation in renewable energy infrastructure. By leveraging existing irrigation networks for solar installations, the Punjab government sets a national benchmark for integrated energy and water resource management.

This strategic project showcases Punjab’s commitment to green energy, climate action, and smart resource utilization, driving both economic growth and environmental sustainability.

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