Business   

Grid-interactive solar power gains ground

— FILE PHOTO

SHAPING UP: A worker arranges photovoltaic cell components of a solar module panel at a factory in Bangalore.

The Union Government’s programme of grid-interactive solar photovoltaic and thermal projects could not have come at more appropriate time when several parts of the country are experiencing severe shortages of electricity. Though the Union Ministry of New and Renewable Energy (MNRE) unveiled the programme nine months ago, it is now that the scheme is shaping up in several States.

Last week, the Haryana Government signed memoranda of understandings with six independent power producers for projects of 12 megawatt (MW) capacity. In Rajasthan, pacts have been signed for two solar photovoltaic (PV) projects of 5 MW each and they have been sent for approval to the Union Government.

The Tamil Nadu Energy Development Agency (TEDA) has identified one private promoter for a 5-MW PV plant in Sivaganga district. In June, the foundation was laid for a 2-MW solar power plant at Asansol in Burdwan district of West Bengal and this marked the inauguration of work on the first grid connected solar power plant at Asansol. Many other States are taking steps to implement the programme.

Under the programme, the Union Government’s incentive will be available for projects with a total capacity of 50 MW. The MNRE will provide generation-based incentive up to Rs. 12 a unit for photovoltaic projects and Rs. 10 a unit for solar thermal power fed to the grid. Proposals from each developer with a maximum aggregate capacity of 5 MW will be considered. The projects with an aggregate capacity of 10 MW in a State will be considered for support. All projects should be completed by December 2009.

T. C. Tripathi, Adviser in the Union Ministry, said the programme received an overwhelming response at the national level. Proposals for over 2,000 MW projects had been received all over the country. However, there are voices of discord as well. Commenting on the kind of response that Tamil Nadu witnessed, Mohan Verghese Chunkath, Chairman-cum-Managing Director of TEDA, said the Union Ministry’s ceiling of 50 MW for the entire programme did not generate excitement among reputed global players. The capacity of each plant should have been at least 30 MW.

The stipulation of 10-year-period for incentive payment was another limiting factor. Debashish Majumdar, Chairman and Managing Director, Indian Renewable Energy Development Agency, who described the programme as ‘a major step forward,’ was, however, of the view that the Centre should not have prescribed the maximum amount of incentive. The prescription had left States with little room for any role in providing higher tariff. He said the Central Government should play a greater role in promoting renewable energy.

Mr. Tripathi said the Centre’s programme was meant to trigger the development of grid-interactive solar power projects. Nothing would stop the States from providing incentives for solar projects independent of the Central scheme.

As for the issue on the incentive payment period, he indicated that the Centre might review its position. To elicit greater response, a Chennai-based entrepreneur suggested that States lay down liberal conditions in respect of earnest money deposit and turnover of firms. What should be the next course of action on the part of the Union Government?

“Another scheme, providing for larger capacity” was the emphatic response from Rajeev Swaroop, Chairman-cum-Managing Director, Rajasthan Renewable Energy Corporation.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Employment insurance, need of the hour
Industry cannot skirt social issues
When big ticket investment banks change their stripes
Investor confidence at lowest ebb
Grid-interactive solar power gains ground
Is a refund application necessary in every case?

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu