The western Indian state of Gujarat is being wooed by seven different
solar companies looking to set up new manufacturing facilities for
solar modules, according to a report in tomorrow’s edition of the
Sunkon Energy, Top Sun Energy, and Waree Energies. Each production
facility could draw an investment of between Rs 500 crore and Rs 1,000
crore ($102.5 million to $205 million), according to the paper.
The interest in establishing manufacturing facilities is tied to the
recent wave of approvals from the Gujarat government for solar power
plants. Earlier this month, the government gave the OK to 34 solar
power projects totaling 716 megawatts, which is nearly 3 percent of the
state’s power requirement.
The power projects are expected to draw an estimated Rs 12,000 crore
($2.4 billion) in investment by the private firms, with 24 using
Lanco Solar has proposed building a Rs 3,000 crore 200-MW solar PV
plant, in addition to a Rs 1,000 crore module manufacturing facility.
The Business Standard reported that the government is now
considering establishing a special economic zone (SEZ) for solar module
“Apart from the solar modules being required for their own PV
plants, the modules produced by the seven players can also be sold to
various other players whose projects would come up in the SEZ,” a
source told the paper.
In January, the Gujarat government announced a policy to encourage
solar energy through March 2014 for projects between 5 and 500 MW (see Tata Power plans geothermal, solar for Gujarat). Gujarat
plans to sign 25-year fixed-rate tariff contracts that exempt companies
from paying an electricity duty on solar power sent to the grid or used
The policy immediately prompted a number of announcements for solar power plants (see Solar farms flock to Gujarat for new tariff plan). Gujarat is viewed as an ideal place for solar power generation because of its abundant open space and high solar radiation.
By 2012, Gujarat is expected to have a demand for 14,000 MW of
electricity. The government has targeted 10 percent of the energy sold
from renewable resources.