The Rockefeller Foundation and Celco, a US solar energy company, have floated an Indian subsidiary to set up rural electrification projects. They have earmarked $2 million (Rs 8.40 crore) as equity in the venture.
The project is part of the Rockefeller Foundation's development activities in India and will be "started on a small scale". Sources associated with the projects said they would not generate profits "until seven-eight years" and the objective was to implement the solar-based systems in rural areas.
Solar energy systems are promoted in the country under various schemes of the department of non-conventional energy sources (DNES) and other multilateral agencies. The Hyderabad-based Renewable Energy Sources (RES) is one of the largest players in the segment with an estimated 400-plus systems installed in rural areas, according to sources.
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DNES last year extended financial aid to a $350 million, 140 mw solar-gas combined cycle power plant to be set up in Jodhpur district.
The project is part-funded by the World Bank which is to provide $53 million of which $4 million will be in the form of technical assistance. The rest of the funds will be met through other loans and grants, both foreign and domestic.
In addition, DNES has also been negotiating with Germany's KfW for a $300 million loan to finance various renewable energy projects in the country like solar lanterns, mini hydel projects and smokeless chulas.
The Asian Development Bank has agreed to provide soft loan worth $100 million to fund renewable energy schemes of the Indian Renewable Energy Development Agency (IREDA) which functions under the DNES. The loan will be repaid over 25 years, which includes a five-year moratorium period. IREDA will bear the foreign exchange risk on the loan.
According to DNES estimates, the total power generating capacity from non conventional sources is about 1050 mw so far. Projects have been set up to meet about 60 per cent of capacity so far.