India aims at solar prices of INR 5.5/kWh from GW-scale parks

Nov 12, 2013 - India expects to achieve electricity purchase rates as low as INR 5.5 (USD 0.086/EUR 0.065) per kWh for solar power through the development of several gigawatt-scale solar parks, according to the joint secretary of the renewables ministry.

At the Intersolar India event that started Monday, Tarun Kapoor from the Union Ministry of New and Renewable Energy said that four huge solar projects have already been announced -- there are two 4-GW proposals for each of Rajasthan and Gujarat, while the state of Jammu and Kashmir is expected to become home to a 2-GW solar power complex in Kargil and another 5-GW one in Ladakh. These four are calling for a total investment of some INR 900 billion, according to the government’s calculations. They will be developed under the Jawaharlal Nehru National Solar Mission (JNNSM), which targets 20 GW of installed solar power capacity by 2022.

The companies that will be in charge of the first 1-GW phase of the solar complex in Rajasthan have already been announced and the capacity is expected to be up and ready to run in three years. The whole 4 GW are to be completed in seven years under current estimates.

As for the project in Gujarat, joint secretary Kapoor said that the land has been allotted already. The design of the plant, to be developed by five to six firms, is yet to be finalised.

The main challenge at that stage for the Kargil and Ladhak solar projects remains the insufficient transmission grid capacity in the area. At the same time, the solar irradiation in the region is perfect, Kapoor noted.

(INR 100 = USD 1.573/EUR 1.174)

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