Oil and gas major ONGC and two other companies have taken preliminary interest in developing solar projects at Purulia district in West Bengal. The total capacity of such project(s) may range up to 900 MW.
Solar power generated, is proposed to be sold to state utility-run 900-MW Purulia Pumped Storage Project – currently consuming nearly 1,000 MW of coal-based power from grid in off-peak hours so as to manage the peak demand shortfall in the State.
“ONGC, Vikram Solar (Kolkata based Solar EPC company ) and an US-based player has taken initial interest in setting up solar capacities linked to the Purulia Pumped Storage Project,” Mr S.P. Gon Chaudhury, renewable energy advisor to West Bengal Government, told
Mr Gon Chaudhury is also the chief architect of “Renewable Vision” of ONGC. The vision document is reportedly finalised in mid-2011.
Investment, land
Available estimates suggest that 900 MW solar capacity would require an investment of Rs 9,000 crore on 2,700 acres. Located on the border of Jharkhand, Purulia is one of the most backward districts in the State with limited water resource and largest share of uncultivable land. Considered to be the hottest, the district experiences a maximum temperature of about 45°C – making it ideal for solar power harnessing.
“All the companies are currently conducting financial analysis or pre-feasibility,” Mr Gon Chaudhury said. The pre-feasibility reports, if prepared, may be submitted to the Union Ministry of New and Renewable Energy.
Unique concept
According to Mr Gon Chaudhury, the feasibility of such projects is underlined by the regulatory guideline for utilities to meet at least 10 per cent demand through renewable energy by 2016.
Considering that the average daily demand of the State now hovers at 4800 MW, it may be safely estimated that State may require to add at least 500 MW of renewable energy in the system in a couple of years down the line.
The declining trend in generation cost of solar projects coupled with the upward movement of thermal power tariff (largely due to the increasing use of imported coal) is expected to make the entire proposition more feasible.
The tariff
The high cost of imported equipment notwithstanding solar tariff, as is pegged at Rs 9 a unit during the recent bidding round of National Solar Mission, is actually on a declining trend. On the other hand, thermal power is selling at approximately Rs 5 a unit and is on the rise.
“I may not be far from reality in projecting a merger of solar and thermal tariffs in a couple of years. More over considering the high environmental impact of the thermal power, solar may prove to be economically competitive,” he said.