Gujarat Government Approves 34 Solar Power Projects with $2.4 Billion Investment

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Researched by Industrial Info Resources (Sugar Land, Texas)--The government of the western state of Gujarat has granted approval to 34 solar power projects to be implemented in the state. When completed, the projects, valued at about $2.4 billion, will place Gujarat at the top of the list of Indian states utilizing solar power. The projects will be implemented during the next few years and will add a total of 716 megawatts (MW) to the state electricity grid. While 24 plants will produce 365 MW by utilizing photovoltaic technology, the remaining 10 will use more advanced solar thermal technology.

According to an official with the Gujarat Energy Development Agency (Vadodara, Gujarat), the generated power will be equal to 2-3% of the state's power needs. He said that the power projects will make Gujarat the preferred destination for investments in the solar power sector. Several firms that are setting up solar power projects in the state are eager to manufacture the various components required by the proposed power plants in the state. Such a situation will add to the investment amounts and also create employment opportunities. About 5,000 people are likely to be employed in the projects. The official added that every year, the 34 solar power projects will produce 1.25 billion kilowatt-hours of environmentally friendly energy. This will help the state avoid using 875,000 tons of coal annually, saving an estimated 1.25 million tons of carbon-dioxide emissions annually.

India is one of the countries bearing the worst effects of climate change. According to the results of the latest annual Economic Survey, India is spending close to $1.2 trillion, 2.6% of the country's gross domestic product, on ways and means to counter the effects of climate change. In fact, India's National Action Plan on Climate Change, released last year, listed solar power as the primary source of generating clean electricity, since coal-based thermal power plants are the biggest source of carbon-dioxide emissions. India's action plan has drawn solar power firms from across the world.

Of the 34 approved projects, the developers of solar photovoltaic projects include:

• PLG Power Limited (Mumbai) - 40 MW
• Lanco Solar (P) Limited (Hyderabad, Andhra Pradesh) - 35 MW
• Astonfield Renewable Resources Limited (ARRL) (New York) - 25 MW
• Dreisatz GmbH (Dresden, Germany) - 25 MW
• Mi GmbH (Germany) - 25 MW
• Torrent Power Limited (BSE:532779) (Ahmedabad, Gujarat) - 25 MW

The developers of solar thermal projects include:

• Sun Borne Energy Technologies (Gurgaon, Haryana) - 50 MW
• NTPC Limited (BSE:532555) (New Delhi) - 50 MW
• ACME Tele Power Limited (Gurgaon, Haryana) - 46 MW
• Adani Power Limited (BSE:533096) (Ahmedabad, Gujarat) - 40 MW
• Electrotherm (India) Limited (BSE:526608) (Bangalore, Karnataka) - 40 MW
• Abengoa Solar (MCE:ABG) (Seville, Spain) - 40 MW
• Welspun Urja Limited (Mumbai) - 40 MW
• Cargo Motors Limited (New Delhi) - 25 MW

The listed projects will together generate 70% of the proposed solar power.

In September 2009, India is expected to release the country's first solar-power plan, according to which the country intends to ramp up solar energy production from a mere 100 MW or so to 20,000 MW by 2020 in a bid to tackle global warming. The $19 billion plan is part of a three-year scheme to cut emissions. The target plan is part of the National Solar Mission, which is an outcome of the country's National Action Plan on Climate Change, and has yet to be officially adopted by the prime minister's special panel on climate. The program promotes the creation of a statutory authority that will make it compulsory for Indian states to purchase solar power.

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