Govt approves 1000 MW grid-connected solar power projects

The government has approved 1000 MW of grid-connected solar power projects, New and Renewable Energy minister Farooq Abdullah said today.

The government is targeting 1000 MW of solar power by 2013 of which 500 MW would be solar PV and 500 MW through solar thermal technology.

In West Bengal a demo tidal wave power project of 100 MW will be executed, Abdullah said.

He also said as an experiment 100 telecom towers would be switched from diesel to solar power for cooling.

The government has targetted 20,000 MW of solar power by 2020 through the Solar Mission. The total potential for renewable energy output is estimated at 85,000 MW.

Indian Reneawble Energy Development Agency CMD Debashish Majumdar said, "Due to huge interest, government will have to go for reverse bidding in September for the proposed grid connected 500 MW photovoltic solar power projects."

Some 2,000 applications for 5 MW each capacity were received and so reverse bidding will be adopted to select 100 projects offering the cheapest rate from the announced rate of Rs 17.90 per unit, he said on the sidelines of Bengal National Chamber of Commerce and Industry interactive session,

Tariff for each project would be determined through reverse bidding.

"It is also seeking to establish viable Memorandum of Understanding (MoU) for executing offsets for the Indian defence industries as well as to absorb and enhance its product range," he added.

The chairman said the company had an excellent financial year with robust growth in production and profit.

"In the FY 2009-10, the company has achieved a value of production of Rs 866 crore and made a net profit of Rs 131 crore," he said.

The company, which is based at Vasco town, said it had achieved 70 per cent growth in production and 59 per cent growth in net profit last fiscal year.