The solar power industry is set for a boom in coming years as a 35 mega watt solar power plant is coming up near Vinukonda, about 90 km from here.
Being developed by a business group with interests in automobile, infrastructure and tobacco, the solar power plant is on the verge of financial closure. Industrial firms in the district are betting big on solar power as they are keen on tapping the opportunity in renewable energy industry.
With the tremendous hype generated over the success of solar power model in Gujarat, local firms were hoping that the NDA government would push for more incentives in solar power industry.
According to District Manager of New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), at least three firms have evinced interest in setting up of 3 MW solar plants mostly in upland areas of the district. Two firms, including the Blue Diamond Soaps owned by Manikvel, have already set up 1 MW solar power plant apiece.
SubsidyThe government provides a subsidy of 70 per cent to those firms willing to set up solar power plants and according to an estimate, it requires Rs.7.5 crore to set up1 MW plant.
But solar firms are eagerly waiting for a push from the Union Power Ministry on trading Renewable Energy Certificates (REC) bonds at the Energy Exchange, a facility which allows solar power investors to sell REC bonds at an average price of Rs. 9 - 13 per unit of power. Conventional trading of solar power to public distribution companies like SPDCL do not offer much to solar firms which get only Rs.6.49 per unit.
Solar power sold to private industries could fetch Rs.10 per unit in peak demand hours and in times of power holiday. “The government should streamline Energy Regulatory Commission and facilitate trading of REC, the only way to motivate firms interested in setting up of solar power plants,” said a, industrialist.
