Orissa is all set to get its first solar photo voltaic (PV) power plant by 2009 as the deal has been cleared for a joint venture between Bharat Electricals Limited (BEL) and the Orissa Renewable Development Agency (OREDA).
The BEL-OREDA joint green venture will set up a 5MW solar PV power plant on a 30-acre land in Kalahandi at an investment of around Rs 125 crore.
The going market rates for a 1MW solar PV generation is around Rs 25 crore. "The deal has been cleared and we are expecting to set up the 5MW solar PV BEL-OREDA venture by 2009. This is state's maiden venture in the solar PV sector", said Ajit Bharthuar, the CEO of OREDA. Orissa has a solar PV power potential of 14,000MW.
Sources said, that the Sahara Group has also placed proposals with the state government for setting up another 5MW solar PV plant. This would also come up over another 30 acres. The state government is making efforts on finding out a suitable location for the Sahara green power venture.
Officials in OREDA said, the joint venture with BEL will be directly linked to the nearest 11KV grid for transmission of power within the state. The module would be of a different kind and no PV batteries will be used for having a separate generation and transmission plank. Usually, it is through battery operation that solar PV power generation is carried out across the country.
The Indian Electricity Act of 2003 has made it compulsory for all state power bodies to have at least 5 per cent of green power utility within intra-state grids and transmission. Orissa is yet to frame such models as it continues to lag on required green power generation. The state will provide land towards equity for the Rs 125 crore project. The equipments for setting up the 5 MWs solar PV plant will be sourced in by BEL.
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OREDA will only act as a facilitator to the project on behalf of the state government. The per unit cost of power for the Kalahandi project has been worked out at Rs 21. Recently, a similar such project conceived by Reliance Industries Limited (RIL) around Bhubaneswar, ran into trouble with all likelihood of being put off as there were disagreements between the promoters and the government over subsidy and per unit generation cost. The maintenance cost and rearing of the solar PV project at Kalahandi will also be done by BEL.
Bharthuar said, "We have commitments on increased participation from BEL for the Kalahandi project". The Orissa government has also focussed its attention on wind power development along the coast and also bio-mass and small hydro-generations in future.