Punjab to launch 40 MW canal-top solar power project with PEDA, boosting clean energy without using farmland, targeting 3,000 MW by 2030.
A 40 MW canal-top( solar photovoltaic project), solar power project is scheduled to be launched by the Punjab government, which will lease irrigation canal segments to the Punjab Energy Development Agency (PEDA) for Rs 1.5 lakh per MW annually.
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This project intends to maximize land use and increase the capacity of renewable energy by putting solar panels above canals, making use of existing infrastructure without using up fertile land. With more than 1,400 MW of solar capacity already installed, Punjab plans to reach 3,000 MW by 2030, which is in line with India’s national objective of 500 GW of renewable energy. Subject to regulatory permission, the project will be developed on a build, operate, and own basis under the supervision of PEDA. Power will be sold to Punjab State Power Corporation at Rs three per unit. At least one MW of capacity is up for bid by developers.

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The Water Resources Department encourages the sustainable dual-use of canal infrastructure for irrigation and renewable energy generation by maintaining ownership of the canal land and charging a 1.5 paise per unit cess on generated power.