In order to achieve the target of 600 Mega Watt (MW) power generation in biomass sector till 2022, the Punjab government has sought incentives from Union government to generate power through crop residues.

The state government has sought help from Union government to provide Generation Based Incentives (GBI) on the biomass tariff of at least Rs four per unit with five per cent rise annually to boost the biomass sector.

Officials said, these projects will contribute to non-solar Renewable Purchase Obligation (RPO ) and will have various socio-economic benefits in terms of employment generation in rural areas along with environmental benefits.  They said the state is primarily an agrarian economy and holds tremendous potential for energy generation from agro-residues of about 21 million tons (MT) being produced every year including cotton stalks, paddy straw and paddy husk.

In order to restrain farmers from burning paddy straw in the fields, 50 per cent subsidy may be given to farmers for purchasing balers for harvesting paddy straw.”The GBI needs to be provided from National Clean Energy and Environment Fund (NCEEF) or from other similar fund to reduce the tariff to be paid by the distribution companies and make such purchase of power viable. The proposal has been already put before the Union government but a response is yet awaited”, a senior government functionary told The Statesman, requesting anonymity.

Presently, these residues are being burnt by the farmers of the northern states in the fields after harvesting of the crop resulting in serious pollution and environment problems in the region particularly during winter.

New and Renewable Energy Policy 2012 provides a target of 600 MW power generation in the biomass sector by 2022.

As per the available information, seven biomass based power projects of capacity 62.5 MW, requiring 0.5 MT per year of paddy straw, are in operation.

“Suitable incentives need to be provided to farmers as well as industrialists to come with efficient usage of the crop residues.

One such usage is of power generation from such residues. This would contribute to farmer’s income and also lead to power generation and preservation of environment”, Bhartiya Kisan Union (BKU) leader, Balbir Singh Rajewal, told The Statesman.

The Central Electricity Regulatory Commission (CERC) has constituted a Committee to study the issues involved and based on its report. CERC has determined tariff for sale of power from biomass or rice straw based projects which are much higher as compared to other Renewable Energy sources, especially solar and wind based projects tariff of which are declining and are attaining parity with conventional fuel based projects.