The government of Gujarat has signed as many as 72 MoUs with various countries which plan to set up solar, wind and tidal power plants in the state with a combined capacity of 7,850 MW at an investment of $14.2 billion.
Indian and international companies made these investment pledges during the 'Vibrant Gujarat' event which concluded last week.
Some of the biggest industrial groups in India signed MoUs with the state government to set up large-scale renewable energy projects. Gujarat is blessed with significant solar and wind energy resources. The state is fast emerging as the favorite destination of clean energy investors since it offers substantial monetary help and highly attractive tariffs for power projects.
The demand for renewable energy-based power is likely to have a steep rise in India in the next decade. The central government has mandated almost all the state governments to procure a certain minimum percentage of their power needs from renewable energy-based power plants.
Known as the Renewable Purchase Obligation, the policy mandates states to buy renewable energy certificates from power producers in case they fail to achieve the minimum percentage. Gujarat has an RPO of 7 percent by 2012-13.
Eighty companies, which own a combined solar power generation capacity of 950 MW, have already signed Power Purchase Agreements with utilities in Gujarat. These power plants are likely to be commissioned by the end of 2011.
Speaking at the 'Vibrant Gujarat' conference, Asian Development Bank's Director General said, "Economies of scale are reducing costs and Gujarat, as well as other states in India, has greater solar radiation, more rapidly growing electricity demand and more available land". He also said that India is likely to lead the Asia-Pacific region in solar energy growth in the coming years.
Some significant power projects coming up in Gujarat are:
- Asia's largest solar PV park with generation capacity of 500 MW
- $265 million renewable energy project to be set by Hindustan Construction Company
- Solar, wind energy power plants to be set up Reliance Power
- 1000 MW wind energy projects from Suzlon
- India's first commercial tidal power plant with 250 MW capacity
144 Expressions of Interest (EoIs) were also admitted to the Gujarat government which propose generation capacity of 18,800 MW with a projected investment of $47.5 billion.
Hat tip: DNA