Hindustan Cleanenergy Ltd (HCEL), the clean energy arm of New Delhi-based Hindustan Power Projects Ltd, has drawn up a plan to set up a 50 Mw grid interactive solar photo voltaic (PV) project in Odisha.
The company will invest Rs 400 crore on the project that is expected to help the state to meet its solar power purchase obligation as imposed by regulator Odisha Electricity Regulatory Commission (OERC).
According to renewable purchase obligation (RPO) fixed for 2013-14, state-owned bulk power purchaser Gridco has to buy six per cent of its energy from renewable sources out of which 0.20 per cent has to be from solar power.
HCEL has proposed to sell power generated from the solar project through a long-term power purchase agreement (PPA) with Gridco for a period of 25 years as provided under the prevailing regulation of OERC.
“The tariff ordered for the project shall be levelised tariff fixed for a period of 25 years and with the spiraling rise in coal and gas prices, it is quite pertinent and clear that the project shall achieve the procurement parity in two to three years. Thus, in a long run, the power will be much cheaper than the conventional counterparts and beneficial to the distribution companies,” the company said in a letter to the state energy department.
HCEL has implemented solar power projects of over 300 Mw in India and abroad. The solar division plans to commission another 300Mw over the next two years.
Presently, on-grid solar power projects with a total capacity of 13 Mw are operational in the state.
Gridco has signed power purchase agreements (PPAs) for eight solar photovoltaic (PV) projects of 1 Mw under Roof Top PV and Small Solar Power Generation Programme (RPSSGP) scheme.
Gridco has also entered into power sale agreement with NTPC Vidyut Vyapar Nigam Ltd, a 100 per cent subsidiary of NTPC Ltd, to avail solar power bundled with equivalent capacity of thermal power from unallocated share of upcoming NTPC stations under ‘New Solar Projects’ scheme of Union ministry of new and renewable energy (MNRE). Under the said scheme, 20 Mw of solar power has been allocated to Gridco.
NTPC would be supplying solar power to Gridco in bundled form along with thermal power and the tariff for solar power will be in the range of Rs 4.74-5 per unit.
The Green Energy Development Corporation of Odisha Ltd (GEDCOL) has planned to go for solar PV generation to the tune of 20-40 Mw immediately for which it has already held two rounds of discussions with Gridco.
GEDCOL is also setting up 50 Mw solar power project at Manmunda in Boudh district. Around 250 acres of land will be needed to set up the project. The project will cost Rs 400 crore.