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In India, the worlds biggest greenhouse gas emitter after the US and China,
renewable energy currently accounts for only 13%, or 36,471 MW, of the total
installed power capacity of 2,75,912 MW.
This would require an investment of around Rs.6.5 trillion over five years.
While the present installation cost of a solar project is around Rs.6 crore per
MW, economies of scale are expected to drive down the cost to Rs.4.5 crore
per MW
India is fit for solar power generation given that the country receives solar
radiation of 5 to 7 (kWh) per sq. m for 300-330 days in a year.
According to the plan, Solar Energy Corp. of India (SECI) will shortly call for
bids from developers for buying 2,000 MW
India plans to provide solar power at new low of Rs4.75 per unit to states:
In response to tenders for setting up 10 projects of 50 MW each, bids totaling
around 5,500 MW were receive under the national solar mission (NSM) in
Andhra Pradesh
This has set the stage for aggressive tariffs to be quoted by the developers,
with Rs.4.75- Rs.5 per kWh tariff becoming the new norm
State-owned NTPC Ltd has been calling for bids from solar project developers
for buying 15,000 megawatts on behalf of the ministry of new and renewable
energy. This is in addition to NTPCs plans to set up 10,000 MW of solar power
capacity on its own.
With the developers expected to quote bids in the region ofRs.3.50 per unit,
NTPC will sell the power to the states at Rs.4.75 per unit, with the balance
going to a hedge fund to cover the foreign exchange risk
Also a recent bidding in Punjab, a state with relatively lower irradiation and
higher cost of land, was an eye-opener with tariffs in the range of Rs.5.09-
5.98 per kWh
A number of utilities and private equity (PE) firms are trying to get a slice of
Indias growing green energy pie which include
o Russias OAO Rosneft, the worlds largest publicly traded oil company,
Prominent new entrants include SoftBank, Trina Solar, Enel, Energon, Solar
Arise, Suzlon and Greenko