Indian Firm Breaks Floor At 1 Gigawatt Photo voltaic Energy Park
Indian hydropower firm SJVN has introduced begin of building of a giant solar energy park within the northern state of Rajasthan.
On January third, the President of India laid the muse for a 1 gigawatt solar power park at Bikaner, Rajasthan. The undertaking is being developed by SJVN Inexperienced Vitality Restricted, an entirely owned subsidiary of SJVN — a authorities owned hydropower era firm. SJVN has a portfolio of 45 gigawatts throughout hydro, thermal, and renewable power applied sciences.
The undertaking was allotted to SJVN Inexperienced Vitality in a aggressive public sale. The photo voltaic park will probably be developed on 5,000 acres at an estimated price of Rs 55 billion ($660 million). It’s anticipated to be commissioned by March 2024. The corporate secured debt funding price Rs 44 billion ($530 million) from the Indian Renewable Vitality Company (IREDA) in December 2022.
The photo voltaic park was allotted as a part of the central public sector endeavor, or CPSU, scheme. As a part of the scheme, firms owned by the central authorities are inspired to arrange giant scale solar energy initiatives. Energy generated from these initiatives might both utilized by these firms for captive consumption or offered to different government-owned firms.
All initiatives allotted underneath this scheme are mandated to make use of photo voltaic modules manufactured in India. This scheme was launched in response to the World Commerce Group hanging down the home content material requirement India had launched in solar energy tenders within the early 2010s.
In a number of the giant scale tenders issued in India in the course of the preliminary phases of the Nationwide Photo voltaic Mission, a portion was put aside to be constructed utilizing domestically manufactured photo voltaic modules. This clause was added in an effort to assist home producers. Nevertheless, this clause was efficiently challenged by the US on the WTO and the Indian authorities was pressured to cancel some tenders.
The CPSU scheme was launched by utilizing a loophole within the WTO guidelines that permit a rustic to utilize home tools obligatory if the ultimate beneficiary of the undertaking is a authorities entity. The CPSU scheme targets establishing 12 gigawatts of solar energy capability.
That is the rationale solely authorities firms are allowed to take part in tenders underneath the CPSU scheme and energy generated might solely be consumed by or offered to authorities firms.
Subsidies & Different Winners
The target of this scheme is to advertise the usage of home photo voltaic modules, nonetheless, they’re considerably costlier than imported modules. Therefore, subsidies for undertaking builders turns into an essential incentive. Within the newest spherical of public sale, the federal government provided a subsidy price Rs 5.5 million ($66,650) per megawatt. All collaborating firms quoted bids of round Rs 4.5 million ($54,530) per megawatt.
The public sale for the latest round of auction underneath the CPSU scheme was held in September 2021. The biggest winner in that public sale was NTPC — India’s largest energy era firm with an put in capability of over 60 gigawatts. NTPC secured rights to develop just below 2 gigawatts of capability. NHPC, one other hydropower era firm, additionally secured 1 gigawatt of capability. NLC India — a lignite mining and thermal energy era firm — and IRCON Worldwide — a building firm underneath the Ministry of Railways — secured rights to develop round 500 megawatts of capability every.
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