According to reports, as part of its major expansion plan that will see the company heading towards an installed capacity of over 500 MW of solar power generation by the year-end and one gigawatt (1000 MW) by 2016, Hindustan Cleanenergy Limited (HCeL), India’s largest solar power development company, has proposed to set up a 50 MW Grid Interactive Solar PV project in Odisha.
HCeL, a part of Hindustan Powerprojects Pvt Ltd, has to its credit a portfolio of over 300 MW of commissioned solar projects in India and abroad.
The project will bring in a private investment in the state to the tune of Rs. 400 crores, a sign of the state’s ability to attract large scale private investment.
“The proposed project shall not only help the state to mitigate the Solar Purchase Obligation (SPO) as provided by Odisha Electricity Regulatory Commission (OERC), but would also bring certain benefits to the state. The project will be a milestone in promoting renewable energy projects with sustainable socio-economic development in the state. Besides, it will also open the doors for many other business avenues to explore and venture into,” said a letter of the company to Energy secretary PK Jena.
The company has also proposed to sell power generated from the solar project through a long-term Power Purchase Agreement (PPA) with GRIDCO, the bulk power supplier of the state, for a period of 25 years at a tariff provided for under the prevailing regulations of OERC.
The tariff offered for the project shall be levelized tariff fixed for a period of 25 years and with the spiraling rise in coal and gas prices it is quite pertinent and clear that the project shall achieve the procurement parity within coming two to three years. Thus in a long run the power will be much cheaper than the conventional counterparts and beneficial to DISCOM, said the letter.
It is to be noted that the company was associated with the 5 MW Solar Farm in Bolangir commissioned in February 2012.