Joining the league of Reliance, Suzlon, and Enercon is India's leading private power company Tata Power, which has chalked out massive plans to generate 1,000 MW of renewable energy from both solar and wind, in Gujarat.
The cost of the entire project would be in the range of Rs 7,000-10,000 crore, sources close to the development told Business Standard.
"Of these, atleast 200 MW will be by way of solar for which the company aims to set up a unit for producing photovoltaic cells," said a senior government official on conditions of anonymity.
Tata is already carrying out a pilot project in Kutch for generating 50 MW of renewable energy, sources said. Tata Power has a tie-up with BP Solar, making them the largest photovoltaic cells manufacturers in the country.
Meanwhile, Asian Development Bank (ADB) has extended financial support for the construction and operation of wind energy facilities of Tata Power.
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Tata has approached the state government for the proposed project and is in the process of filing a detailed project report (DPR), according to sources. The projects are likely to come up in Kutch, where it already has its ultra mega power project (UMPP) at Mundra. Besides, Jamnagar is also a favourable optionc, sources said.
In response to an e-mail query, a company official declined to comment. However, company sources say plans are in a preliminary stage. The photovoltaic industry has one of the highest long term potentials among renewable energies.
Earlier, Reliance Industries Ltd. (RIL) had shown interest to set up a mega solar photovoltaic (PV) cell plant at a projected cost of Rs 20,000 crore at Jamnagar in Gujarat. Besides, Euro Solar, of Euro Group is aiming to set up a 100 MW unit in Kutch.
According to European Photovoltaic Industry Association (EPIA), an increase in production capacities has already reduced PV production costs and prices tremendously.
"In India the cost has come down to Rs 15-20 crore per MW from Rs 30 crore per MW in 2001," observed an industry expert. Every time the global production output is doubled, production costs are being reduced by approximately 20 per cent. Mass production lowers production costs which leads to lower consumer prices which in turn triggers further demand.
While PV off-grid applications are for the most part already competitive, the majority of grid connected applications are not yet competitive with residential electricity prices, according to EPIA.