PLG power was one of the first companies to be alloted capacity by the Gujarat government under its state policy. As Panchabuta had mentioned last year, PLG was one of the companies shortlisted when the state of Gujarat announced that Gujarat Urja Vikas Nigam Ltd had finalized 17 PPAs for 235MW of generated Solar PV and Solar Thermal for 25 years in May last year.
Since, the progress made by a lot of these developers have not been as expected due to numerous delays and Bloomberg has reported last month that delayed solar-power plants face fines as Gujarat sets a precedent. Once this was announced there have been a string of announcements from developers about their project developments and things have started moving on the ground at a much better pace.
Panchabuta talking to sources understand that developers like Azure Power too are facing possible penalties from Gujarat government and the government will not accept the delays including their declaring of force majeure due to the unprecedented rains in Gujarat. This is because Lanco Infratech with a 5MW capacity has been able to complete the project well ahead of time.
Incidentally, these delays do not bode well for Azure Power-the solar company in the limelight the most- and their execution track record given that they have been venture backed by funds like Helion Venture Partners, Foundation Capital and IFC the private investment arm of the World Bank, given their ambitious targets of 100MW installed capacity by 2013.
PLG power after a long delay in their project, have now announced that their 40MW Solar PV power plant in Patan near Ahmedabad will be completed before the end of this financial year.
According to CEO Punit K.Goyal, the plant, will be built in four phases. Each phase will consist of ten MW; the first one should be connected to the grid shortly.
PLG Power has additionally secured the equity participation of 20 MW with Zamil of Saudi Arabia, and 20 MW with Ashburg of U.K. Pramod Goel CMD of PLG Power added that the company has “many projects lined up, which involve huge investments”.