First Solar to set up solar project in Telangana

This will be the American company's first project in India

US-based First Solar Inc (FSLR), a thin film solar module manufacturer and developer of solar projects worldwide, plans to build a 45-Mw capacity solar power generation project in the new state of Telangana through its Indian subsidiary.

First Solar India country head, Sujoy Ghosh, said this would be the company's first project in India. Globally, it currently has project pipeline of more than 2,500-Mw.

Ghosh told Business Standard Telangana was chosen to set up the project as "solar radiation is very good" in the state. He, however, said he would not be able to disclose the cost of the project at this juncture.  The project includes construction at two different sites in Mahabubnagar district and is expected to commence commercial operation by May 2015.

It will supply electricity through the grid to the Southern Power Distribution Company of Telangana State Limited (TSSPDCL) at a tariff of Rs 6.49 a unit for a period of 20 years. The power purchase agreement was signed in June.

“The state of Telangana has an energy deficit that demands immediate creation of incremental generation capacity. The excellent solar resource in the state combined with our CdTe thin film module technology that is ideally suited for hot climates like India, allows us to bid tariffs that brings solar energy pricing to parity with diesel/gas and potentially imported coal, for the consumers across all segments,” Ghosh stated.

He said construction of the project was expected to begin by October, this year. On completion, the project would produce electricity,  which would be sufficient to meet the needs of over 92,000 average homes in Telangana.