Moving a step further towards achieving the target of 1500 mw renewable energy in Punjab over the next five years, Punjab Energy Development Agency (PEDA) on Thursday signed two MOUs with power sector major Suzlon Gujarat Wind Park Ltd for setting up two wind power projects in the state. The projects of 50 mw each would be set up in Hoshiarpur and Muktasar at an estimated cost of Rs 500 crore.

The MoUs were signed between chief executive PEDA, TPS Sidhu, and Atul Shah, director Suzlon Gujarat Wind Parks Limited, in the presence of Bikram Singh Majithia, science and technology minister.

Speaking on the occasion Majithia said that this was a major initiative of the Punjab government to fulfill the commitment of generation of 1500 mw power through renewable sources. The minister said that Punjab was in for new era by exploiting all natural resources to garner to additional capacity to decrease the deficit so that state becomes power surplus in next four years. He said that till date no one had thought of producing power from wind mills as feasibility trials were being conducted at the height of 30 to 40 meters. However, Suzlon with international technology would help generate power by using windmills at the height of 70 to 80 meters.

Also, the state is planning to generate 300 mw power from wind energy over the next five years. This comes at a time when the state is passing through worst phase of power crisis. As per plans, Punjab government with its focus on renewable energy would produce 250 mw power through cogeneration, 325 mw through biomass generation and 25 mw through mini-hydro projects.

Suzlon is world’s largest fully integrated wind power company. In India, it’s based out of Pune and has several manufacturing sites primarily in southern states. It has a production capacity of 3000 mw of wind turbines per annum with a group turnover of Rs 14,000 crore.

Atul Shah, director Suzlon told FE that after expanding in south, the company is keenly looking for opportunities in northern states of Punjab, Haryana and Himachal. While it has been estimated that India has a total wind power potential of 45,000 mw, the current installed capacity is only 7,660 mw in the country. “There are huge opportunities to expand and the company is looking at producing 6,000 mw by the end of next five years in India,” Shah said. He said that the company has introduced new technology to produce wind energy at the height of 70 to 80 meters making it possible for the company to expand its operations in non-coastal areas.

TPS Sidhu further informed that PEDA had earlier signed a MoU with Enercon for wind resource assessment and development of wind power projects in the state. The company would soon be submitting a feasibility report to PEDA for the setting up of wind power projects based on their site wind data.

Wind power projects could prove a boon for the state as these have a very low gestation period, of 6 to 9 months, as compared to 3 to 4 years of hydro or thermal power projects. Further, these projects do not require any environmental clearances being environmental friendly. Also, the land where wind turbines are set up can be utilised for farming.

As for charges, the state as per its NRSE Policy-2006 shall provide a feed in tariff of Rs 3.49 per unit (base year 2006-07) with 5 annual escalations at 5% up to 2011-12 and PEDA shall provide a complete facilitation to the companies for setting up of these power projects in Punjab.

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