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Government of the Punjab
Energy Department

Opportunities in Punjab:


Punjab with population of 93 million is the largest province of Pakistan and contributes 60 % of the GDP. It has a large industrial base with more than 48,000 units. There is a growing un-met demand of energy which offers an opportunity for investments in power generation projects based on various indigenous sources:


Punjab Energy Investment Opportunities (Presentation MS-Power Point)

Steps for investing in the Power Sector through Punjab Power Development Board (PPDB)



  • Punjab has a total low-head hydel potential of 600-1000 MW on canals and barrages

  • Out of three potential larger sites shared with AJK, 600 MW project can be undertaken at Mahl in collaboration with the Govt. of AJK

  • 5 small hydel projects (55MW), whose feasibility studies have been completed, are ready to be implemented under joint venture mode. These projects are to be established at the following sites: Khanki Barrage; Qadirabad Barrage; Lower Chenab Canal; Upper Chenab Canal; and Qadirababd Balloki Link Canal.

Download the list of Hydro Power potential in all Punjab (MS Excel)



  • Punjab has sizeable coal reserves, estimated at 235 million tons, of varying quality in Salt Range.  

  • A coal purchase agreement has been signed for a minimum of 2400 tons/day of coal supply from Balochistan (Chamalang) for a 300 MW plant in District Muzaffargarh in JV mode.

  • Energy Department is seeking private sector investment in proposed 300 MW power plant at District Rahimyar Khan based on imported coal.

16 Industrial Estates under Punjab Small Industries Corporation have been targeted for establishment of dedicated power plants (10-50 MW) using mix of coal, biomass and solid waste. These will be dedicated projects with energy buy back guarantee.


Biomass, Biogas and Waste to Energy:

  • Huge potential of biomass based power generation exists on unutilized crop residue of around 34 million tons per annum consisting of rice husk, rice straw, maize stalk and cotton stick, etc.

  • 35 million livestock in Punjab offers substantial opportunity for biogas power projects

  • 12,300 tons/day of solid waste is produced in urban centers of Punjab which is a readily available source for generation of power

  • 32 MW Thermal Power Plant on Municipal solid waste near Faisalabad City with completed feasibility study and identified land is ready for interested investors in JV/PPP mode

Solar and Wind:

  • Huge potential for generation of power through solar energy especially in Southern Punjab

  • 5000 Acres of land in Cholistan has been reserved by the GoPunjab for the establishment of solar power plants

  • 50 MW CSP Solar project in District Muzzafargarh is planned in public sector/JV mode

  • Wind corridor in Kalarkahar area, around 10-20 KM wide and 250 Km long, promises considerable potential for wind power projects


Policy and Institutional Framework:


Punjab Power Generation Policy - Government of Punjab has developed and an enabling power policy to facilitate investment in this vital sector.  Punjab Power Policy 2009 provides a framework for the development of power plants in both public and private sector as well for joint venture projects. The policy is intended to promote all types of technologies including hydel, coal, solar, wind and bio-mass. Hydel projects in the private sector would be implemented on Build-Own-Operate-Transfer (BOOT) basis while other projects in the private sector can be established on either BOOT basis or on Build-Own-Operate (BOO) basis.


Incentives: Power generation companies are allowed to import plants and equipment @ 5% duty (0 % for renewable energy) with exemption on sales tax. Other incentives include: income tax exemption for life; full repatriation of profit plus investment; international arbitration awards enforceable under law; hydrological risk borne by the government; minimum 15% ROE guaranteed net of taxes (US$ based). 


Punjab Power Development Company Limited - The Government of Punjab has established Punjab Power Development Company (PPDCL), a government owned company registered with the Security Exchange Commission of Pakistan (SECP), to develop power projects in public sector as well as in public-private partnership mode.


Punjab Power Development Board - The Punjab Power Development Board (PPDB) has been established as "One Window Facilitator" to promote and encourage private sector's participation in the power sector.


For further information please contact:

Managing Director.

Punjab Power Development Board.

Irrigation Secretariat,

Old Anar Kali, Lahore,



Ph: +92 42 99213885-6

Fax: +92 42-37336655


Other Resources       Renewable Energy
 Punjab Power Development Board (PPDB)   Punjab Energy Scenario Downloads Solar
 Punjab Power Development Co. Ltd. (PPDCL)   Opportunities in Punjab Picture Gallery Wind
 Chief Engineer Power (CEP)   Careers @ Energy Department Contact Us Hydel
 Punjab Power Management Unit (PPMU)   External Links   Biomass
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