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Karnataka cancels 18 grid interactive solar projects

According to reports, the Karnataka government’s ambitious plan to generating 200 Mw power from the solar photovoltaic power projects has suffered a setback with the Union ministry of new and renewable energy (MNRE) rejecting the proposal to grant subsidy for 18 projects from the state. As a result, the state government has been forced to cancel the permission granted to those projects.

The state government had allotted 129 Mw of grid-connected solar photovoltaic power plants to various developers covering 21 projects. These projects were allotted under the MNRE Scheme for Demonstration Programmes on grid interactive solar photovoltaic power generation. Under this scheme, MNRE was to provide subsidy of Rs 12 per KwH of power generated. None of the developers have been able to get any approval from the MNRE.

Later, the projects were recommended for approval under the Jawaharlal Nehru National Solar Mission (JNNSM) Scheme for migration to the new scheme. However, out of these projects, four projects of 3 Mw each, totaling to 12 Mw, were allotted to Karnataka Power Corporation Ltd. (KPCL). MNRE has not approved any of the other projects under the migration scheme.

Subsequently, based on the recommendation of Karnataka Renewable Energy Development Limited (KREDL), the Karnataka government has cancelled the permission of 18 grid interactive solar photovoltaic power plants to various developers totaling 120 Mw, the government said in an official notification.

The KREDL has been asked to refund the fees deposited by these developers of Solar Photovoltaic power projects.

The companies that were cancelled include: MSPL Limited (10 Mw), Ramgad Minerals and Mining Pvt Ltd (5 Mw), MSPL Gases Limited (5 Mw), Aston Field Renewable Resources Limited (10 Mw), Millenium Synergy Pvt Ltd (5 Mw), Shalivahana Solar Energy (3 Mw), Solitaire Powertech Private Limited (50 Mw), Karnataka Power Corporation Limited (3 Mw), Milltec Machinery Pvt Ltd (10 Mw), Kotak Urja Pvt Ltd (1 Mw), ORB Energy Pvt Ltd (1 Mw), Priyadarshini Green Power Project (1 Mw), Avishree Green Power Pvt Ltd (1 Mw), Bheemeshwara Renewable Energy Solutions (2 Mw), Vishrutha Power Pvt Ltd (5 Mw), Apollo Renewable Energy (5 Mw), Atria Power Corporation (1 Mw), Azure Power India Pvt Ltd (2 Mw).

Under the Solar Policy 2011-16, the Karnataka government proposes to promote solar power as a part of the renewable energy in the state. The policy has come into effect from July 1, 2011 and shall remain in force up to March 31, 2016. As per clause (4) of the Solar Policy 2011-16, it is proposed to install 200 Mw power up to 2015-16, for the purpose of procurement by the energy supply companies. This will be in addition to the allotment received under JNSSM.

The government proposes to add 40 Mw solar power every year for the next five years. The minimum capacity shall be 3 Mw and maximum capacity shall be 10 Mw per project for solar photovoltaic and minimum capacity shall be 5 Mw per project for solar thermal.

KREDL has been appointed the nodal agency for facilitating and implementing this policy. The proposed capacity for procurement by ESCOMs for the year 2011-12 is 40 Mw and for 2012-13 is 40 Mw.

The government recently floated bids for development of 80 Mw for the year 2011-12 and 2012-13.

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