Summary

Punjab ranked seventh among the 10 Indian states surveyed by Climatescope 2014. It scored 0.86 and had its best performance in Parameter IV, GHG Management Activities.

Punjab is known for its fertile lands that generate more than a quarter of its $25.4bn GDP. Land is scarce, making conditions challenging for wind and solar deployment, but with ample feedstock, biomass has become the main clean energy source.

From 2006-2012, Punjab invested a total of $2.2bn in clean energy, while no major project investments were made in 2013.

Biomass and waste-to-energy accounted for nearly all (96%) of 2006–12 clean energy investment, and it makes up 73% of the state’s 4.5GW of clean energy capacity.

In 2013, the Punjab generated an estimated 21TWh, although not all of it was consumed within the state. Coal-fired plants were responsible for 77% of total electricity generation, while renewables contributed a very small portion, just 1.6% of generation and 13% of installed capacity.

Subsidies are distorting power tariffs. From 2005 to 2010, the state provided subsidies equivalent to 22% of the revenue of Punjab’s distribution company. These price distortions had an impact on the financial strength of the company, although it received a relatively healthy ‘B+’ rating issued by the Ministry of Power in 2013.

In 2013, Punjab held auctions for 300MW of solar capacity, although no new capacity has been built. It has invited bids for 300MW of projects based on biomass or agricultural waste, and it does not have any meaningful wind resource.