Now, Punjab aims for a ‘green energy revolution’
WITH the 10th Amendment to Punjab’s intra-state open access regulations, 2011, introduced by the Punjab State Electricity Regulatory Commission (PSERC), the state has made a significant stride towards sustainability. Published on June 5, 2023, this policy on solar energy aims to address longstanding electricity challenges and advance Punjab’s alignment with national and global sustainability goals.
One of the most visible results of the state’s solar energy programmes has been the reduction in the electricity bills in the state.
Prior to the implementation of solar reforms, its energy sector strongly relied on fossil fuels, requiring significant energy imports. Solar energy has considerably alleviated this burden.
The total solar energy production increased from 1,493 million units (MUs) in 2021-22 to 2,729 MUs in 2022-23 and is expected to reach 3,629 MUs by 2024-25. Solar energy costs are expected to drop to Rs 4.24 per unit by 2024-25 from Rs 6.59 per unit in 2021-22. This highlights the economic benefits of transitioning to renewable sources.
The state's solar capacity has also grown at an astonishing rate. From March 2022 to October 2024, rooftop solar installation capacity increased from 157 MW to 419 MW, while the total installed capacity, including from outside-state contributions, increased from 1,556 MW to 2,574 MW. This growth has enabled Punjab to drastically cut its electricity costs and reliance on traditional energy sources.
The agricultural and industrial sectors, in particular, have benefited. Farmers using solar energy for irrigation not only save money on electricity, but also earn an additional income by selling surplus power back to the grid.
The surge in Punjab's renewable energy has also had a profound impact on reducing greenhouse gas emissions.
Transitioning from fossil fuels to solar energy has decreased carbon-dioxide emissions, with early estimates suggesting a reduction in the annual greenhouse gas output of over one million tonnes. This has improved air quality, particularly in urban and industrial areas, where air pollution has long been a critical health concern. Cleaner energy sources have been linked to lower rates of respiratory illnesses, offering both public health benefits and reduced healthcare costs.
The state government's proactive approach to renewable energy has made it easier for consumers to adopt solar power. Simplified procedures for access to green energy are now available to commercial and industrial customers with approved demands of 100 kVA or higher. With automatic approvals given after 15 days if no action is taken, a centralised digital platform guarantees prompt and transparent processing of applications. This consumer-centric model, which eliminates bureaucratic delays, encourages a wider adoption of green energy.
The policy's financial incentives have further bolstered the use of renewable energy. For 12 years after the commissioning of a project, cross-subsidy surcharges for users of green energy have been limited to 50 per cent of their original levels. Entry barriers for innovative renewable energy technologies have been lowered by additional fee waivers for offshore wind projects, waste-to-energy facilities and green hydrogen production.
In addition to easing affordability, these programmes make Punjab an attractive location for investment in the renewable energy industry.
The state has incorporated solar energy into agriculture to promote sustainability across industries. It allows farmers to lower the operating expenses and investigate new revenue opportunities. The programme even makes it easier to sell surplus electricity to the grid and promotes solar-powered irrigation.
The government aims to promote environmental stewardship and fortify Punjab's agricultural foundation by empowering rural people.
However, despite these achievements, challenges remain.
For small enterprises and rural households, the upfront costs of switching to renewable energy sources are a major obstacle. Recognising this, the government has started technical assistance initiatives and awareness campaigns to educate stakeholders about the long-term advantages of green energy.
Infrastructure-readiness is another area of concern. Integrating renewable energy into Punjab's existing electricity infrastructure requires a transition to transmission and distribution networks. The government is collaborating with private partners and central agencies to improve the state's energy infrastructure so that it can meet the rising demand for renewable energy.
The government's attempts to boost green hydrogen and ammonia production underscore its forward-thinking approach. They demonstrate its determination to establish itself as a leader in the renewable energy sector.
By aligning its policies with the Central government's Green Energy Open Access Rules, 2022, and global climate agreements like the Paris Accord, Punjab is exhibiting its commitment to sustainable development. The Amendment also supports the United Nations' Sustainable Development Goal 7, which aims to ensure access to sustainable, affordable, reliable and modern energy for all.
The government's comprehensive approach to governance is reflected in the inclusivity of these reforms.
By reducing the entry barriers for consumers and prioritising renewable energy adoption, the administration has established a policy framework that benefits all stakeholders — from industrialists and farmers to ordinary citizens.
The emphasis on inclusivity, transparency and innovation serves as a model. The 10th Amendment demonstrates the Bhagwant Mann-led AAP government's commitment to balancing economic growth with environmental stewardship. By embracing renewable energy, Punjab is building the foundation for a sustainable future. These reforms represent a governance philosophy that prioritises the welfare of the people and the planet, ensuring that Punjab continues to be a beacon of progress and sustainability for future generations.
