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Mumbai-based PLG Power has signed a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd for 40 MW of solar power.
The cost per MW is estimated at Rs 15 crore, while the PPA agreement for 25 years pegs the unit cost (Kwh) at Rs 15 for the first 12 years and Rs 5 for the balance of tenure.
PV projects
The company will set up the PV projects in Patan district in northern Gujarat.
The Gujarat Government has allotted 716 MW of solar power capacity to 34 national and international project developers, against the 500 MW capacity declared earlier this year under its Solar Power Policy - 2009. Of the 716 MW allotted, solar photovoltaic accounts for 365 MW and solar thermal 351 MW.
The Gujarat Electricity Regulatory Commission has set the tariff for electricity generation from Solar PV project at Rs 15 per kWh for the initial 12 years starting from the date of commercial operation of the project and Rs 5 per kWh from the 13th year to 25th year.
The commission has decided to adopt Rs 16.50 crore per MW as capital cost for solar photovoltaic power project, and Rs 13 crore per MW for solar thermal power projects.
PLG Power set up its crystalline solar photovoltaic (PV) module manufacturing plant in Nashik in 2008 with an installed capacity of 25 MW.
The plant, built with technical collaboration of US-based Spire Corporation, was recently expanded to 150 MW.
PLG said the first phase of 10 MW in Patan will be connected shortly and the balance will be done before end of the current fiscal.
PLG has signed EPC (engineering, procurement and construction) agreements with the Saudi-based Zamil Group for a 20 MW solar grid connected plant and Indowind Energy for a 10 MW solar PV unit. The plants will also be Gujarat.
Mr Punit K Goel, CEO and MD, PLG Power, said “assuming solar power to be a one GW market, a huge EPC market opportunity exists in the space. The solar sector has become a very competitive market now but very few players have turnkey EPC services — from designing to execution of a grid connected solar power plant.”
PLG is coming up with a 60 MW manufacturing unit for PV cells in Nashik and plans are on to expand the module making facilities as well.
At present, the company is importing the cells.
The closely held PLG Group is into petrochemicals, plastics, flour and oil mills, retail and farm housing.
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