Chennai Silks, one of the largest textile retailers in the South, has made a foray into commercial exploitation of solar energy with the commissioning of its 2 MW plant at Olappalayam near Kangeyam on Sunday.

The grid- connected plant has been established by Tata Power Solar (TPS), which is a wholly owned subsidiary of Tata Power Ltd, in about three months.

In a release, Tata Power Solar said that in the first year, the plant was expected to generate 3.1 million units of power. The plant would operate under the Renewable Energy Certificate (REC) mechanism. This would enable Chennai Silks group to supply power from the solar plant to TANGEDCO’s grid and draw an equivalent quantity of power from the grid to operate group’s factory. It also expects to generate an income of about Rs 3 crore -Rs 3.7 crore through trading of REC, apart from savings in energy cost of Rs 1.5 crore to Rs 2. crore a year.

TPS quoted a report by Central Electricity Authority as stating that while the energy deficit in the South was 18.1 per cent, the national average was 8.3 per cent. Tamil Nadu’s energy deficit was 17.5 per cent. Tamil Nadu has embarked upon a massive plan to tap solar power and targeted generation of 3,000 MW by 2015 through this renewable energy source.

Ajay Goel, CEO, TPS, was hopeful that the project of Chennai Silks `would act as a catalyst’ for other industries to tap solar power as the first alternative source (to conventional energy source) to meet their energy needs.

N.K.Nandhagopal, MD, Chennai Silks Group, said the group’s foray into solar power has helped it to avail of accelerated depreciation benefits along with REC benefit, reducing working capital needs.

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