Punjab to Solarize One Lakh Electric Agricultural Tubewells

Punjab State Power Corporation Issues Tender To Procure 200 MW Solar Power

One lakh electric agricultural tubewells, currently in use by the state, would be powered by solar energy by the Punjab government. The Ministry of New and Renewable Energy had received a request to solarize 1 lakh grid-connected electric tubewells, and the Union Government had approved it while also setting a target of 1 lakh pumps for the state.

Aman Arora, Minister for New And Renewable Energy Sources, stated that the initiative would save about Rs 200 crore annually on account of power subsidies and contribute significantly to the preservation of natural resources. According to the minister, “The energy sector is undergoing a transformation that is unparalleled, and this ground-breaking move will pave the road to ensuring cheaper and greener energy.” 

With the implementation of this project, Punjab will experience four key advantages: reduction in the cost of subsidies to the exchequer, a decrease in the need for power supply, a decrease in the cost of agricultural inputs, and environmental preservation by switching from conventional power to solar energy.

Further, he said, “The Punjab Energy Development Agency (PEDA) has already issued an electronic bid request for the selection of Solar Power Generators (SPGs) for the feeder-level solarization of 25,000 grid-connected agricultural pumps. 13.88 lakh farmers in the state receive free electricity for their grid-connected tubewell irrigation systems, while the government pays about Rs 7,000 crore in subsidy payments to the Punjab State Power Corporation Ltd. (PSPCL). The Union Ministry of New and Renewable Energy has accepted a proposal to solarize 1 lakh electric tubewells that are connected to the grid, according to the minister, and has given the state the goal of 1 lakh pumps.”

As per him, the current agricultural electricity pricing is Rs 5.66 per unit, but if these 1 lakh agricultural tubewells are solarized, the rate per unit will be much lower, saving the government a total of Rs 200 crore yearly in subsidies. According to Punjab Energy Development Agency (PEDA) Chief Executive Sumeet Jarangal, the Union government will offer a subsidy of Rs 1.05 crore per MW for the construction of solar power plants for the solarization of tubewells. Jarangal further noted that the program will be conducted under the RESCO method with private involvement.

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Having an investment of Rs 1,030 crore, solar power plants with a capacity of about 215 MW will be installed for the solarization of one lakh pumps. According to him, private investors will provide Rs. 804 crores, while the central government will contribute Rs. 226 crores in the form of subsidies.

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Recently, PEDA invited applications from farmers, groups of farmers, panchayats, cooperatives, Farmer Producer Organisations (FPOs), and water use associations in Punjab for setting up of solar power plants of individual capacity of 1MW, 1.5 MW and 2 MW.