According to reports, M and B Switchgears Ltd has sewn up plans to set up a 20 MW solar photovoltaic power plant near Indore in Madhya Pradesh.
“We will invest about Rs 250 crore in the project with a 70:30 debt-equity ratio. We have chosen the project site which is adjacent to the existing project and expect to achieve financial closure within two months,” said Mr Vikalp Mundra, Director of M and B Switchgears, said.
Listed on the BSE, M and B, based in Indore is a manufacture of distribution and power transformers.
“The project to be based on renewable energy certificate (REC) mechanism will be implemented before March 2013,” he told Business Line last week after their company began trading in RECs at two power exchanges.
“We have set up a two-MW grid-connected solar power project at Rajgarh district in MP. This project is expected to generate close to 32 lakh units of electricity a year. By trading these through the RECs we expect to generate revenue of about Rs 4 crore,” he said.
This is in addition to the energy sale cost.
The trading of solar RECs on power trading exchanges opens a new source of revenue generation for solar power producers apart from sale of energy to third party users under the open access system.
Open access enables a power generating company to directly sell the energy generated to end users.