The Hindu Business Line : Push for MW-capacity solar power generation

Owing to the high initial capital cost of solar power plants and the cost of electricity from such plants, the Ministry has decided to provide a generation-based fillip.

– Mr V. Subramanian, MNRE Secretary.

G. Srinivasan

New Delhi, Jan. 6 The Ministry of New and Renewable Energy (MNRE) is all set to promote the setting up of megawatt-capacity grid-connected solar power generation in the country.

The MNRE Secretary, Mr V. Subramanian, told Business Line this is being done to demonstrate technical performance of megawatt-size grid-interactive solar power generation, and reduce cost of solar components and solar power generation.

He said solar thermal power plants have been installed globally in MW-capacity range but no such plant has been installed in the country till now.

He said currently the country gets solar energy equivalent to over 5,000 trillion kWh per year and the daily average solar energy incident over different parts of India is about 4-7 kWh per square metre, depending on the location.

He said while the largest solar photovoltaic (PV) plant in India is of 200 kwp capacity currently, the experience with grid-connected PV plants was limited mostly to 25 kwp capacity plants with battery backup, and these plants are underpinned by MNRE subsidy.

Generation-based fillip

Mr Subramanian said owing to the high initial capital cost of solar power plants and the cost of electricity from such plants (Rs 15 per kWh in grid without battery as opposed to Rs 1.75-3.50 in small hydro), the Ministry has decided to provide a generation-based fillip.

This would consist of a maximum of Rs 12 per kWh for electricity generated from solar PV, and Rs 10 per kWh for electricity generated through solar thermal power plants and fed to the grid from a grid-interactive solar power plant of one MWp and above capacity.

He said this subvention would be provided to project developers at a fixed rate for a span of 10 years and the MNRE incentive would be worked out taking into account the tariff provided by the utility to the solar power producer.

He further said that the utilities are expected to purchase solar power at the rate usually provided by them for medium-term power purchase or the highest rate fixed by the State Electricity Regulatory Commission for purchase of power from any other renewable energy source.

Demo programme

Mr Subramnaian made it clear that the demonstration programme would be confined to an aggregate installed capacity of 50 MWp of solar power during the 11th Plan period.

Each State may be allowed to install up to 10-MWp aggregate capacity under the programme.

Additional investment

He anticipates additional investment of about Rs 1,000 crore, mostly from the private sector, to flow through this initiative.

The grid-interactive power plants would be set up on a build, own and operate (BOO) basis.

The demonstration does not allow direct participation of capital investors or individuals.

On an average about 2 million kWh (units) electricity is generated from a megawatt peak-capacity solar power plant, and with the recent norm of providing at least one kWh (unit) electricity per day to a rural household, capacity addition of one-MWp grid solar power plant would help meet electricity needs of about 5,000 families, he added.

Being eco-friendly (one KW capacity would preclude one metric tonne of carbon dioxide emission annually) with minimum recurring costs for operation and maintenance only, Mr Subramanian said these plants would generate 25-40 direct jobs and another 400 indirect jobs.

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