Gujarat clear leader in pushing solar power policy:IREDA Director

Recognizing Gujarat’s efforts in developing renewable energy, Mr K S Popli, Director, Indian Renewable Energy Development Agency (IREDA) said that the state was a clear leader in pushing its solar power policy as a mission, to combat environmental degradation and achieving a sustained growth. Mr Popli was delivering the keynote address at a seminar on ‘Financing of Solar Power Projects in Gujarat’ held today at the Cambay Spa and Resort, Gandhinagar. The seminar was organized by the Solar Energy Association of Gujarat and Gujarat Energy Development Agency (GEDA). “Lenders and venture capitalists prefer to invest in the state, given its front-loaded offer of Rs 15 as tariff, for solar power projects,” Mr Popli said.

The one-day event was inaugurated by chief guest Mr Kaushikbhai Patel, Chairman, 20 Points Implementation Programme Committee, Government of Gujarat. Speaking on the occasion, Mr Patel said that the state’s fuel import bill was huge and it was therefore necessary to remove all roadblocks in the path of renewable energy projects so as to become self-sufficient in the area. It was also important to take up such projects so as to check climate change, environmental degradation and global warming, he emphasized.

Principal Secretary, Dept of Energy and Petrochemicals, Govt of Gujarat, Mr D J Pandian said that the state had been successful in bringing solar power developers to the state. “The state’s aim is to achieve 900 MW of solar power, of which 300 MW of grid-connected solar power would be commissioned by December 2011,” Mr Pandian said. “Another 200 MW of solar power could also be commissioned by the same period if developers put forth adequate efforts and 3000 MW of energy could be commissioned in the next five years,” he stated.

Mr Pranav Mehta, Founder Chairman, Solar Energy Association of Gujarat, said, “As the capital cost and also the cost of production are comparatively higher in solar energy projects, arranging finance for such projects is somewhat difficult. But considering the environment-friendly nature of solar energy, the financial institutes now adopts flexible approach, when it comes to finance such projects.” Stating that the state had stepped forward in a decisive way to take up solar power projects, Mr P Nanda Kumaran, Chief General Manager SBI, Ahmedabad circle said the bank supported Gujarat’s renewable energy efforts.

Mr Rajat Misra, Sr Vice President, SBI Capital Markets Ltd said that while investors were ready to invest in solar power projects in the state, they needed specific answers regarding their queries relating to the projects.

The seminar was co-sponsored by SBI Capital Mkt Ltd, SunEdison and Abellon Energy Ltd in association with NexGen Financial Solutions Pvt Ltd.