Private Cos eyes investment in solar power

Mumbai: After wind mills, corporates are eyeing investment opportunities in solar power generation projects.

The newly released policy for grid connected solar power projects has attracted corporates such as Videocon Industries, Konark Group and a few energy generation companies such as HVV Solar Technologies, Resun Energy and Supernova Solar energy to think about investments in such projects.

The Maharashtra government owned electricity generation company Mahagenco, in association with Pune-based Mitcon Consultancy Services, has already initiated a 1 MW solar power project at an investment of Rs 20 crore in Chandrapur district in Vidarbha. Mitcon looks at solar power projects as an excellent investment option as it can generate revenues by selling carbon credits as well.

As of now, solar power projects are implemented by hotels, residential colonies and individual households on a very small scale level. The newly released policy by the Centre promotes solar power projects that are connected to power grids and can generate electricity from 1 MW to 5 MW.

Mitcon managing director Pradeep Bavadekar said, 'A total of 12,402.7 MW of electricity in India is generated from renewable energy sources. Out of which, only 2.12 MW comes from solar energy while maximum of 8,757 MW comes from wind energy. The new policy for solar projects provides a lot of incentives, which corporates should exploit to set up solar power project plants.'

A solar power project plant of 1MW scale can generate revenues or Rs 2 crore annually through sale of electricity units. In addition to this, it can also earn almost 1,200 carbon credits every year, which would generate additional yearly revenue of Rs 1 crore. 'Our calculations show that a solar power project plant of 1 MW scale would come to a break-even level within six years,' said Mitcon executive vice-president Deepak Zade.

He added, 'We are holding talks with a number of coporates as well as energy generation firms over this particular issue. Big names such as Videocon Industries, Mumbai-based Konark Group and other have shown interest in setting up solar power projects.'

As per the policy, the state electricity board would purchase electricity generated by the project at a rate decided by the electricity regulatory body in the concerned state.

The policy prescribes Rs 15 per KWh rate for electricity generated from such power plants. 'If a state electricity board purchases power at Rs 3 per KWh, the ministry of new and renewable energy would pay the remaining amount of Rs 12 per KWh to the project,' Zade added.