Allocation of funds for energy projects registered 100 percent increase in Punjab's annual budget for fiscal year 2013-14 to Rs 20.43 billion against Rs 10 billion during 2012-13.
According to the budget documents, the Punjab government has actively embarked upon implementation of the ADB-assisted Renewable Energy Development Sector Investment Programme (REDSIP) for construction of five hydropower projects at Marala (Sialkot), Chianwali (Gujranwala), Deg Out Fall (Sheikhupura), Pakpattan (Pakpattan), Okara (Okara) with cumulative installed potential of 25MW and annual generation of 140GWh.
Out of these execution contracts under International Contract Bidding (ICB) for Marala (7.64MW), Pakpattan (2.82MW), Dag Outfall (4.04MW), and Chianwali (5.38MW) have been awarded and the contracting joint ventures have started detailed designing to undertake these turnkey projects.
Further, feasibility appraisals are completed for development of five additional hydropower sites at barrages and canal systems (Khanki and Qadirabad barrages and LCC, UCC and QB Link Canals) to have total installed capacity of 55MW with annual energy generation.
Under a separate initiative, a detailed technical feasibility study has also been planned to harness 120MW generation potential at the Tunsa barrage through private sector. It may be noted that Punjab consumes 68 percent of the total electricity generated in the country and is coping with severe energy shortfalls that have very adversely hit its targets for annual GDP growth rates of 6 percent for the past many years.
Since revision of the Punjab Power Policy in year 2009, the province has accelerated activities toward envisaged action plans for renewable energy development in the province. After establishment of the Punjab Power Development Company Limited (PPDCL) to implement the ADB-assisted five low-head hydel power projects in public sector and the Punjab Power Development Board (PPDB) to facilitate power sector investments in private sector. An independent Energy department has also been established by the Punjab government in 2011 to plan, oversee and administer the development, growth and regulation of energy sector in Punjab.
The salient initiatives of the Punjab government on energy front suggest that the Punjab government would focus on renewable energy development sector investment programme to construct five hydropower stations. It will also prepare a feasibility study for development of coal based power projects and industrial estate in Punjab. Further, a Centre for Energy Research and Development at KSK campus of University of Engineering & Technology (UET) Lahore would also be set up. The government would also install solar photovoltaic power plant at the Islamia University Bahawalpur besides constructing 120MW Tunsa HPP in joint venture mode.
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