K'taka plans creating 10-nation consortium on solar energy

Karnataka government is working towards creating a consortium of about 10 countries endowed with abundant solar energy to benefit in terms of research and technological advancements in the field.

"This will aim to pool research and technological advancements in the field of solar energy to improve its accessibility to the poorest of the poor and in the remotest of locations in the state of Karnataka," Chief Minister Siddaramaiah said. Speaking today at the inauguration of Green Summit-2015, organised by Federation of Karnataka Chambers of Commerce and Industry, he said extension of incentives would be on top of the agenda for the new start-up units in solar energy.

Karnataka government's Solar Energy Policy launched in May 2014 had set the target of producing 20 Giga Watt of capacity in the next five years. Highlighting that the fruits of development will not reach the common man until energy connectivity reaches to every household of the state, he called upon investors to invest in the state to make it power surplus.

Siddaramaiah said government was giving farmers waste uncultivable lands as bonanza for producing solar power and feed it to the grid at Rs 8.40 per unit. Expressing his confidence about the potential of Karnataka to lead the country in the domain of renewable energy, Siddaramaiah said, the main driving force for the development of the wind energy sector has been the provision of the accelerated depreciation benefit.

The growth of this sector has also been supported by the incentives offered by the state Government for every unit of energy generated, he said, adding that, in fact, Karnataka is offering the highest price for the unit generated, he added. Siddaramaiah called upon investors to support the state's programmes and invest in Karnataka to meet additional targets.

He said the renewable energy industry has been one of the big success stories in the recent years and "we all have to make additional efforts to overcome the impediments and also undertake faster implementation of the policies."

Siddaramaiah said market driven tariff mechanisms will be put in place to bring in more investments. However, there are certain challenges that still persist especially with respect to financing and duty structures, he said. He said "what we require is a consistent policy over the long term and our Government is committed to it."