Solar power generation is set to gather pace in the Capital with the Delhi government ready to roll out a Solar Power Policy on the RESCO model with a target of producing 1000 MW of electricity by 2020. More importantly, top sources told The Hindu that the World Bank is planning to provide loans for the solar projects in Delhi.
Not just that, if all goes as planned, the city is going to get its first exclusive solar power plant at the defunct Indraprastha Thermal Power station. Starting with a capacity of 5 MW, the Delhi government will be floating tenders for the same by next month. Later its capacity would be increased to 20 to 25 MW.
All these proposals were mooted in the “Delhi Solar Roundtable Conference” organised on Tuesday by the Delhi Dialogue Commission, a think tank of the Government of National Capital Territory (NCT).
Confirming the proposals, Delhi’s Power Minister Satyendra Jain said that the Delhi government is soon going to release a fresh policy on solar power based on the Renewable Energy Services Company (RESCO) model wherein the government would provide the site for various projects while the developer will invest the capital cost for project development.
The policy will be in tandem with the net metering regulations issued by the Delhi Electricity Regulatory Commission (DERC).
When asked about giving incentives to people who invest in solar power, the Minister clearly stated that the Delhi Government will not provide subsidy on capital costs. “We conducted a study and found out that providing subsidy on capital costs is mostly of no use as generation of power is not guaranteed. So our policy will provide incentives to those who are producing solar power in terms of subsidy. For each unit produced through solar power by the household, we will give Rs 1 – Rs 1.5 as per the meter reading,” he added. Currently, the MNRE offers 30 per cent subsidy on solar equipment or capital costs.
“The policy would not be on the CAPEX model, but rather on RESCO under which the project operation and maintenance cost will also be borne by the developer. The World Bank is going to provide loans for various projects because of which returns could be achieved by the operators in about 10-12 years time,” said Mr Jain.
World Bank to provide loans for the solar projects in Delhi
