According to reports, Sun Edison India is planning a novel approach to setting up a 10 MW solar power project in Tamil Nadu.
In the context of the keen interest in investing in solar power generation in the State, Sun Edison, a US-based multinational company in solar power, believes there is an emerging market for ready-built solar power projects.
It will set up a 10 MW solar photovoltaic project and look for investors to sell the project, according to reliable sources.
Industry estimates peg the cost of solar power project at about Rs 8.5 crore a MW.
Sun Edison is betting on the State Government’s solar policy announced last year driving the demand for solar power projects.
In the Tamil Nadu Solar Power Policy, the Government stipulates that commercial and industrial power consumers must meet six per cent of their electricity consumption from solar power from January 2014.
The process has been initiated with a three per cent solar power purchase obligation taking effect from January this year.
Tamil Nadu Generation and Distribution Corporation, a State Government utility, estimates the six per cent obligation will mean a demand for about 1,000 MW of solar power generation.
It has called for bids from private investors to set up solar power projects and enter into 20-year power purchase agreement with it and has offered a tariff of Rs 6.48 a unit to the bidders.
This price, according to industry sources, is attractive for small investors who can avail of income-tax benefits from the accelerated depreciation provided for the renewable power project.
Against the estimated demand for 1,000 MW, the utility has received a commitment for about 200 MW, according to reliable sources.
Sun Edison hopes to tap the emerging demand for ready-built solar power projects, the sources said.