The project, tagged as one of the largest foreign direct investment (FDI) into the state, will also be a landmark project as the cost of power generation is likely to be 70 per cent less — around Rs 20,000 crore — than the conventional cost of generation, say sources close to the development.
The project envisages an integrated solar city wherein all the raw materials including glass and panels will be produced by them, bringing down the cost substantially, said a senior government official.
The cost of generation for thermal energy is about Rs 10-11 per unit. However, according to estimates of Clinton Foundation, the power produced in the solar city will cost around Rs 4 per unit, going by the scale of the project and technology advancement they have on hand.
Hans De Keulenaer on 03 Jan 08India will subsidize the running of solar power plants to help develop a renewable energy infrastructure, where high costs can be prohibitive, the minister for renewable energy said on Wednesday. Renewable energy accounts for about 7.5 percent of India's installed generation capacity of 127,673 MW, a rate that compares favorably with much of the rest of the world. Much of this capacity is wind-based, and the share of solar power is small. "My ministry will provide financial assistance amounting to 12 rupees (30 cents) per kilowatt hour in case of solar photovoltaic and 10 rupees per kilowatt hour in case of solar thermal power fed to the electricity grid," Vilas Muttemwar said in a press conference.
