Astonfield To Invest $2 Billion in Renewable Power Generation in India

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Astonfield Renewable Resources Limited (ARRL) (New York, New York) is set to tap the clean energy sources of solar, biomass, solid waste and biogas in India, through investments of about $2 billion over the next three to five years. ARRL plans to establish solar photovoltaic plants in the six Indian states of Rajasthan, Haryana, Gujarat, West Bengal, Bihar and Karnataka.

ARRL has obtained clearances for three renewable-energy ventures in West Bengal.

The firm's 5-megawatt (MW) photovoltaic plant in Bankura, West Bengal, will have the distinction of being the first solar power plant in India with an output capacity of greater than 1 MW. The plant is being set up at a cost of $20 million on 26 hectares of land and is expected to commence operations in December 2009. The facility will produce 7 million kilowatt-hours (kWh) of power annually and will be integrated with the main power grid. Astonfield Solar Private Limited, a subsidiary of ARRL, has already entered into a 20-year power-purchase agreement with the West Bengal State Electricity Distribution Company Limited (Kolkata, West Bengal). One-third of the tariff costs will be borne by the state government of West Bengal, while the rest will be covered under the central government's subsidy scheme for solar power ventures.

ARRL also plans to invest about $15 million in a 10-MW biomass-based power project in Gangarampur, West Bengal. In addition, discussions are under way with the Kolkata Municipal Corporation to set up a solid-waste-to-energy project at Dhapa in Kolkata, where a 54-MW plant will be developed on a 186-hectare waste site that collects approximately 3,200 tons per day of waste. ARRL plans to employ the direct-combustion technology for power generation and will develop the plant on a build-own-operate basis at an estimated investment of $100 million with a debt-to-equity ratio of 70:30.

As India grapples with the soaring domestic demand for power, clean energy projects in the country have ample potential for success. India's solar-energy sector has remained relatively unexplored, with only a few projects with capacities in the range of 1 MW currently in operation. The installation cost for a solar photovoltaic plant is estimated to be $4.5 million to $5 million per MW of power output, which is about five times the installation cost of a conventional thermal power plant. With the entry of ARRL in India, the demand for renewable energy power plants is expected to increase, bringing down the installation costs involved in setting up solar power plants. The company, along with the state government of West Bengal, has developed the first viable solar policy in the country.

In addition to projects in West Bengal, ARRL will execute other ventures including a 200-MW photovoltaic plant in Gujarat at a cost of $800 million, a 100-MW biomass-fired power plant in Bihar at an investment of $150 million, a 3-MW solar plant in Haryana at a cost of $12 million, and a 10-MW solar photovoltaic plant in Karnataka at an estimated cost of $40 million. Over the next five years, ARRL is also planning to establish photovoltaic plants in the African countries of Uganda, Tanzania and Kenya.

ARRL was established in 2005 with the aim of harnessing renewable energy alternatives to supplement conventional sources of power in the developing regions of Africa and India. The company has forged partnerships with leading technology providers in the renewable energy sector and offers custom solutions to generate power from solar, biomass, solid waste and biogas. In order to maximize the efficiencies of its ventures, ARRL adopts a build-own-operate model of plant development so that it is involved in all stages of the project.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.