Thiruvananthapuram: The Kerala Industrial Infrastructure Development Corporation (Kinfra), a statutory body of the State government, proposes to set up a Solar Energy Park in Palakkad district under the Central Financial Assistance scheme for demonstration programme on tail-end grid-connected solar power plants by the Union Ministry of New & Renewable Energy.
It is to be set up in a six-acre plot owned by Kinfra. The land is rocky with no significant vegetation and, therefore, considered suitable for the purpose. The land requirement for 1 MW solar power plant is approximately 5 acres. Kinfra will provide the land on lease.
The estimated current capital cost of the project is Rs.22 crore excluding the cost of the land and its connectivity to the nearest 11-kV/LT State power grid. The ‘levelised tariff’ for a lifecycle of 20 years works out Rs.15.00 per kWh. The procurement of this power by the Kerala State Electricity Board shall be governed by the regulations issued by the Kerala State Electricity Regulatory Commission in respect of sale of solar power. The first year tariff as per these regulations is Rs.18.93 per kWh.
The Ministry is providing a financial assistance up to Rs.10 crore for the project. It is expected to reduce the ‘levelised’ tariff by approximately 50 per cent and make the project financially and commercially viable. The project completion schedule is estimated to be 30 months.