Infrastructure major GMR Infrastructure Ltd is planning to set up solar power plants with a total capacity of 75 MW in Tamil Nadu, industry sources told Business Line .

The company is planning to increase this to 100 MW in the next few years, and Tamil Nadu is the potential state to house the new power plants, an industry source said.

The company, which operates the largest solar power plant in the country today (25 MW in Gujarat), has an installed renewable energy capacity of 27.1 MW (25 MW solar and 2.1 MW wind).

GMR, which has identified potential sites near Dharmapuri to put up the power plants, is waiting for the Tamil Nadu government to come out with its solar policy to finalize plans on the investment, location of the plants etc.

A company official said, “It is very early days to decide the details and we are waiting for the policy.” He declined to divulge much information but indicated that while Gujarat is also a possible location, the company is looking primarily at Tamil Nadu.

GMR apart, several other solar power generators are keenly awaiting the Tamil Nadu government's renewable energy policy, more so after Tamil Nadu Chief Minister, Ms J. Jayalalithaa's announcement on establishing a 50 MW solar park in the state.

Other players

Solar players like SunEdison, Lanco Solar and Azure Power are amongst the players who would increase their presence in the solar space once the policy is released.

The Tamil Nadu Energy Development Agency (TEDA) had recently announced that the TN government was planning to develop 3,000 MW of solar power capacity in the State, and that the renewable energy policy would be out soon.

Mr Vineeth Vijayaraghavan, an industry expert who runs an online newsletter, panchabuta.com said that a policy which includes both large and small projects will be welcomed by the industry.

“Trade-offs need to happen between price and size, so a small quota of allotment for small capacity power plants which would encourage small players, and the rest in bigger sizes to attract international players, will help bring down prices,” he said.