With investors rushing to set up solar power projects adding up to 2,500 mw of capacity, the new and renewable energy ministry has decided to ask the planning commission and the Cabinet to expand the 11th Plan solar power programme beyond 50 mw, for which it had announced a generation-based subsidy of Rs 12 per unit for solar photovoltaic and Rs 10 per unit for solar thermal generation.
In January, the Centre announced a scheme for installing megawatt level grid interactive solar power plants, adding up to 50 mw by end of the 11th Plan period. Under the scheme, the government is offering a generation-based incentive of Rs 12 and Rs 10 per unit from solar photovoltaic plants and solar thermal plants respectively. V Subramanian, secretary for new and renewable energy, said that after the ministry had asked for expression of interest, plenty of proposals poured in that added up to 2,000 mw for solar photovoltaic-based generation and 500 mw for solar thermal based generation.
The ministry was allotted Rs 100 crore to subsidise the 50-mw generation, which will be extended as incentives to the power producers on a fixed rate spread over 10 years taking into account the tariff provided by the purchasing utilities.
Subramanian said although Rs 100 crore was enough to subsidise 50 mw generation, more than Rs 4,000 crore will be required to subsidise projects adding up to 2,500 mw.
For subsiding a 2 mw plant or 30 lakh units of solar power generation, the outgo will be Rs 3.6 crore out go a year at a rate of Rs 12 per unit.
However, the states are coming out with individual green energy policies and subsidy schemes and interested investors can apply for getting projects in these states, Subramanian said.
SP Gon Choudhuri, managing director of West Bengal Green Energy Corporation Ltd, said that so far only three states–West Bengal, Rajasthan and Gujarat–have come out with green energy policy and opportunity for investors are confined within the three states only.
West Bengal has declared a preferential tariff of Rs 11 per unit for solar power and has declared income tax benefit on depreciation of the plant.