Indian ministry of new and renewable energy has announced a new scheme of setting up solar projects by defense establishments.
According to the proposal, 300 MW of grid connected and off-grid PV power projects will be launched with Viability Gap Funding (VGF) under phase 2/3 of JNSM through 2014-15.
The cost of the project is estimated to be Rs. 750 crores and the project will run for a period of five years beginning from 2014.
The scheme aims to promote sustainable growth as well as utilization of vacant land or rooftop in defense areas for achieving energy security by installing solar plants.
After the ‘Make in India’ launch, Government is keen to enhance domestically manufactured equipment to promote indigenous production of solar cells and modules.
Establishments of Army, Navy, Air Force, Ordinance Factory Board, Defense Laboratories, defense PSUs and Para Military Forces can implement these projects.
Each project will have a minimum capacity of at least 1 MW and a maximum of 20 MW.
For this purpose, government has also given consent to use the defense land by way of lease or for self –use.
If the forces identify the land along international borders that do not belong to the forces then power generated can be used by establishments either partly or fully depending on the situation.
The VGF scheme supports the project through both developer mode and EPC mode. It also includes off-grid solar applications. The forces can adapt any of the modes or a combination of two.
In a developer mode, the project is handled by a developer who makes the investment, owns the project and supplies the power.
For a developer mode the solar power will be made available at a pre-determined tariff of Rs 5.50 per unit through a PPA deal.
An EPC mode is applicable when project is built through EPC contractor and investment is made by the defensive establishments. For this, VGF will be released in four installments.
In addition, Government has also permitted the sale of excess power to other distribution companies.
The Jawaharlal Nehru National Solar Mission is a government of India initiative run with active co-operation of states in order to develop sustainable growth while tackling energy security challenge of India.
Sabeena Wahid
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