Punjab govt announces to install 300 megawatt solar power projects

The Punjab government has decided to install solar power photovoltaic (PV) projects with a total capacity of 300 megawatt in the state.

These projects include 200 MW canal-top solar PV power projects and 100 MW floating solar PV power projects on the reservoirs and lakes, said an official statement while giving details of the decision taken in a high-level meeting held here on Monday.

The meeting was chaired by Punjab New and Renewable Energy Sources Minister Aman Arora.

The proposed 200 MW canal-top solar project would be installed in a phased manner, under which 50 MW would be installed in the first phase, while projects of remaining capacity would be installed in subsequent phases, Arora added.

These projects will be executed in build, operate and own (BOO) mode by the Punjab Energy Development Agency (PEDA), he said.

While discussing in the meeting, the feasibility of setting up these projects, the minister said, viability gap funding (VGF) has been proposed to be claimed from the Department of Economic Affairs under the Union Ministry of Finance, under their scheme.

Notably, VGF is designed to provide capital support to PPP projects, which would not otherwise be financially viable.

The canal-top solar power projects will be installed on small distributaries having less width, which will involve less civil work. The cost of the canal-top solar PV projects is expected to be around Rs 5 crore per MW after taking into consideration of 20 per cent VGF, Arora said.

Similarly, floating solar PV projects are also an emerging idea being implemented in the country for using the potential area on lakes and reservoirs, the statement said.

The cost of floating solar PV projects would be around Rs 4.80 crore per MW after considering 20 per cent VGF, it said.