Yet another public sector company in India has announced ambitious plans to set up large-scale renewable energy capacity.
SJVN Limited, a company working in the large-scale hydro power protects sector, has announced plans to set up 4.2 GW wind and solar energy capacity in the western state of Gujarat.
The project is seen as part of the Indian government’s policy to encourage public sector companies to develop ultra mega renewable energy projects with capacities of 4 GW and above.
SJVN Limited had earlier signed agreements with other public sector companies to develop a 4 GW ultra mega solar power project in the state of Rajasthan. That project is now believed to have been scraped due to political reasons.
1 GW renewable energy capacity will be added during the first phase of the proposed project. SJVN Limited is expected to develop this capacity itself. It is safe to assume that the entire solar power capacity commissioned during the first phase will be based on solar photovoltaic modules assembled and manufactured in India.
The subsequent phases of the project will be opened for private project developers. SJVN Limited may auction project capacity through competitive bidding or some other route.
The Indian government is planning to add 20 GW solar power capacity through ultra-mega solar power projects each with a capacity of 500 MW to 4 GW. All such projects are expected to be developed, at least in part, by public sector companies so as to promote the use of domestically manufactured solar power equipment.
Such large-scale projects would be central to India’s plan to add about 100 GW solar power capacity and 70-80 GW wind energy capacity by 2022.
Image Credit: Gujarat Power Corporation Limited