The Hindu Business Line : TN welcomes private sector investments in solar power

Mr Arcot Veerasamy, Tamil Nadu Minister for Electricity, with Mr Mohan Verghese Chunkath, Chairman and Managing Director, Tamil Nadu Energy Development Agency (right), visiting stalls at Green Power 2008, International conference and exhibition on renewable energy technologies organised by the CII in Chennai on Wednesday. —

Our Bureau

Chennai, June 11 The State Government will support the private sector in setting up a 10- MW solar power generation facility, according to the Electricity Minister, Mr Arcot N. Veerasamy.

Addressing the inaugural of Green Power 2008, an exhibition on renewable energy, he said that in the context of the steep increase in prices of fossil fuels there is a need to encourage exploitation of renewable sources of energy.

Tamil Nadu has emerged a leader in wind energy generation and is now focussed on encouraging solar power also.

The high initial costs of investment for solar power generation — about Rs 18-22 crore a MW against Rs 4-6 crore a MW for wind or hydel projects — was a disincentive. But the Centre has announced that it would pay a supportive tariff of Rs 12 a unit of solar power fed into the power grid and has suggested that State governments should pay an additional Rs 3 a unit.

The State Government, in line with the Centre’s guidelines, would support investments in solar power generation, Mr Veerasamy said.

The State’s potential in biomass power was estimated at 4,087 MW but about 99 MW has been set up as of February 2008. Bagasse-based co-generation in sugar mills is also being exploited with over 376 MW being generated from the sugarcane waste. The potential is estimated at 450 MW.

In wind power, the private sector has an installed capacity of over 3,475 MW against an estimated potential of 5,500 MW. Wind energy has provided a major safety net in making the State self-sufficient in power.

Merchant Power

The Minister urged the private sector to invest in merchant power projects in Tamil Nadu. The State has sanctioned over 22,000 MW of merchant power projects and at least 10,000 MW would be in place by 2011. They would be able to generate power at Rs 2.75-3 a unit and power deficit States were willing to pay up to Rs 7 a unit.

Tamil Nadu itself would be power surplus from July and is expected to sell power to the Power Trading Corporation at Rs 7 a unit, he said.

Green Power 2008 is organised by the CII-Sohrabji Godrej Green Business Centre, a joint initiative of the CII, Andhra Pradesh Government and the Godrej Group to promote sustainable and environment friendly technologies.