MNRE approves 50 MW each of canal top solar PV demonstration projects

Indian Ministry of New and Renewable Energy (MNRE) has sanctioned 50MW each of pilot-cum-demonstration project for development of grid connected solar PV plants on canal banks and tops during the 12th plan period.

The cost of the entire project is estimated to be Rs. 975 crores, supplemented with a Central Financial Assistance (CFA) of Rs. 228 crores.

The project size varies from 1 MW to 10 MW and timeline for commissioning is 15 months from the date of sanction of project.

The scheme will utilize vacant area available on top of canals as well as the government land along the banks of canals for setting up solar plants. The generated power will be supplied to the grid.

Under National Solar Mission (NSM), a total capacity of 100 MW solar projects will be established to achieve targets.

All States and Union Territories in India are eligible for receiving benefits under the scheme, provided they have fulfilled their Solar RPOs or commit to do so within a given time frame.

The solar PV power plants will be developed by the State power generation companies, government utilities or any government organization operating in power sector or own canal systems like irrigation.

Solar Energy Corporation of India (SECI) under the MNRE will manage the Scheme. SECI will also manage funds, for which they will be provided service charge of 1percent of the funds directed through them.

Once the proposal is approved, MNRE will sanction the project followed by SECI releasing the capital subsidy of up to Rs. 3cr/MW for Canal Top SPV projects and Rs. 1.5cr/MW for Canal Bank SPV Projects.

The subsidy sanctioned will be either the amount or 30 percent of the project whichever is lower.

In addition, CFA of upto Rs.225 crore for 100 MW will be disbursed over a period of maximum 2 years.

CFA provided will be up to 40 percent on sanctioning of the projects and 60 percent on successful commissioning of the projects within 15 months.

Gujarat was the first state to introduce canal top solar power projects in India and subsequently releasing the tender for the implementation of another 10 MW canal top solar project in the state.

Sabeena Wahid
[email protected]