Good News from PSPCL: paddy straw based state of the art power plant re-commissioned after about 15 years

Kanwar Inder Singh/ royalpatiala.in News/ June 24,2024

Power Minister Harbhajan Singh E.T.O. today announced the successful recommissioning of the 10MW Biomass Power Plant at Village Jalkheri, District Fatehgarh Sahib, highlighting its significant environmental and economic benefits for Punjab.

PSPCL’s 1x10MW Biomass Plant at Village Jalkheri (Dist. Fatehgarh Sahib) was originally commissioned in June 1992. The plant remained operational till July 1995 after which it was given on lease to M/s Jalkheri Power Plant Ltd (JPPL) in July 2001. The plant was recommissioned in July 2002 and remained operational till September 2007. In 2012, efforts were made to restart the project by giving a licence to a private developer to run it for a specific period by giving it on lease. In 2018, the plant was re-tendered to be leased out on ROT basis.

Now the renovated plant has been recommissioned on June 21, 2024 and officially commenced operations. It utilizes advanced Denmark Technology boilers and is designed to generate electricity using 100% paddy straw. This state-of-the-art facility biomass plant will consume approximately 1 lakh tons of paddy straw annually. Which will help state government to curb the problem of stubble burning in nearly 50 thousand acres of area in Punjab. This initiative will provide direct and indirect employment to 400-500 individuals, fostering economic growth in the region. The project brings multiple benefits including environmental protection by mitigating air pollution caused by the burning of paddy straw in fields, supporting sustainable energy by reducing dependence on fossil fuels and effectively utilizing the abundant paddy straw available in Punjab. The term of Power Purchase Agreement (PPA) for this plant is 20 years starting from June 21, 2024 after which the facility will be transferred to Punjab State Power Corporation Limited (PSPCL).

In the recent tendering process, the final quoted tariff was found to be Rs.5.84/KWH after reverse biding which in fact has further been reduced by Rs.0.07/KWH saving Rs.10 Crores over the lease period. The lease agreement and Power Purchase Agreement were signed with M/s SAEL in 2019 and the plant was handed over to SAEL for renovation in the same year. All the power generated from this plant shall be purchased by PSPCL at negotiated tariff of Rs. 5.77/- per unit (Rs.2.27 per KWH, fixed cost component which will remain constant for entire lease period +Rs.3.50 per KWH, variable cost component which will be escalated @ 5% p.a.).

Good News from PSPCL: paddy straw based state of the art power plant re-commissioned after about 15 years. Minister Harbhajan Singh E.T.O. emphasized the multi-faceted benefits of the project: “This initiative not only increases our green energy capacity and provides employment but also offers a solution to the persistent problem of stubble burning. It aligns perfectly with our government’s commitment to energy security, environmental protection, and economic growth.”