| Punjab has the highest per capita consumption of power in the country at 972 units, as compared to the national average of 700 units. Against the state's total generation capacity of 6,088 Mw, the present demand in the state is of 9,000 Mw. |
| Moreover, the power deficit in the state increases at the rate of 10 per cent per annum. |
| To tackle this situation, the state has announced a number of projects to make the state power-surplus by the end of 11th plan. |
| The target of adding 6,000 Mw of power to the existing capacity during the next five years seems difficult as this is more than the entire generation capacity of 5,000 Mw in the state over the past sixty years.The state, however, might just manage to be in a position to meet the growing demand. |
| In order to achieve a surplus the government is open to setting up nuclear power plant, besides new thermal plants while emphasising bio-mass power generation. |
| Recently, the state mooted a proposal for outsourcing the bio-mass power sector with an overall potential of 1,000 Mw in a phased manner. Very soon, the state government is likely to opt for early technical and financial bids to select one or several groups to invest in the state. |
| In order to provide a major thrust, funds amounting to Rs 1,062 crore were being allocated in the budget on the energy front. Also, the second phase of the Lehra Mohabat Thermal plant will be commissioned in the current year. |
| Efforts are afoot for bidding out thermal power projects at Talwandi Sabo of 1,800 Mw capacity, at Nabha of 1,200 Mw and third at Goindwal of 600 Mw capacity. |
| Also, the government is contemplating liberalising the policy to allow the industrial units to develop captive as well as co-generation plants. |
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