India to Achieve 500 MW Solar Power

India is in its mission to achieve 20 GW on grid and 2 GW off grid solar power production by the year 2022. During the first phase of its mission which ends in March 2013 the country is targeting to achieve 1 GW solar power through photovoltaic and thermal sources.

The Jawaharlal Nehru National Solar Mission of the country has planned to issue permission for 100 projects each with 5 MW power production capabilities during the first phase of its mission. More than 100 companies have sent in their applications for selection to participate in the project. 100 companies will be selected through a reverse bidding process for the first phase of the 500 MW. For the purpose of encouraging new entrants and wider participation, it is planning to encourage only one application from a company which includes its parent, affiliate or group companies.

The Indian government having understood the heavy capital outlay required for the solar project may start an exclusive equity funding for the planned solar projects. Debashish Majumdar, Indian Renewable Energy Development Agency’s Chairman and Managing Director, said that his office will recommend a dedicated equity fund when there is a shortage in funding. He expressed optimism about the banks accepting the scheme and added that if the banks resort to financing through a funding it will bring in a change in the risk perception for the banks.