New players line up to enter solar energy space in Guj

Even as Gujarat is aiming to become India's solar energy hub, investors and power project developers have lined up to make investments in clean energy sector in the state. At a seminar on Reverse Bidding for Solar Projects: India 2011 held in Ahmedabad during October 20-21, 2011 new entrants in the solar energy sector expressed their eagerness to set up projects in the state.

"Gujarat is one of the favourite destinations for solar projects in the country. We are also planning to set up a solar power project in the state. A letter of intent will soon be filed with the state government authority," said an official from HCC Infrastructure, a subsidiary of construction major, Hindustan Construction Company Ltd.Most of the new entrants in the solar energy space are apprehensive about availing the tariff benefit for the power generation. "We are not sure what will be the set tariff for the new projects. But going forward, we are hopeful to strike a favourable deal," said a solar project developer.

The seminar, which was jointly organised by Power Markets India and Renewable Markets India was attended by investors, developers and EPC contractors for solar energy sector. "We have seen good participation from stakeholders of solar projects. About 150 executives of various companies attended the two-day seminar here," informed one of the organisers. Even as the state government has already set a deadline of December 31, 2011 for commissioning of solar power projects so as to qualify for the tariff benefit under the solar power policy, the officials are confident to accommodate new players after March 31, 2012. "Things will get clear after March 31, 2012 by when we would know how many projects have actually took off. Thereafter the state government may consider taking up more solar power projects in the state," said an official from GERC.

Under the state government's policy, solar photovoltaic projects commissioned before December 31, 2011 would be eligible for a tariff of Rs 15 per unit (kwH) for the first 12 years and Rs 5 per unit from the 13th to the 25th year.