The Hindu : Kerala / Kochi News : Incentive for solar power generation

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Tuesday, Jan 22, 2008
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Incentive for solar power generation

Staff Reporter

Project developers to get incentive at fixed rate for 10 years

International conference on solar cells held
Investment by private sector envisaged

KOCHI: The Union Government has decided to provide generation-based incentive for grid-interactive generation of solar power under a demonstration project, V. Subramanian, Secretary, Ministry of New and Renewable Energy, has said.

Delivering the inaugural address at an international conference on solar cells organised by the Department of Physics at the Cochin University of Science and Technology here on Monday, Mr. Subramanian said the Ministry would provide an incentive of maximum of Rs.12 per kWh for the electricity generated from solar plant of a capacity of one MWp and above. The incentive would be provided in view of the present high initial capital cost of solar power plants and the cost of electricity from such plants, he said.

The incentives would be provided to the project developers at a fixed rate for a period of 10 years. It would be worked out taking into account the tariff provided by the utility to the solar power producer.

Mr. Subramanian said the utilities were expected to purchase solar power at the rate usually provided by the utilities 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. The grid-interactive power plants would be set up in build-own-and-operate basis. Investment would be made by the private sector.

About 250 delegates were attending the three-day conference.

More than 70 research papers would be presented on the occasion.

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