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Friday, 20 September 2024

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India to subsidized solar power

 

The Indian government is looking to subsidize solar power in bid to develop renewable energy within India. The subsidy will come from the federal instead of the state level and will basically amount to 12 rupees per kilowatt hour.

 The Renewable Energy minister of India has come out and expressed a further interest in developing a renewable energy infrastructure. Currently 7.5 percent of India’s power needs are met from renewable sources. That amount may look set to decrease as the nation becomes more power hungry and is forced to turn to nuclear or coal power to meet needs. Already popular are polluting diesel generators , both in rural and urban areas. Currently India has a power generation capacity of 127 GW. Wind has at the moment the largest share of renewable energy. 12 rupees will be offered for solar photovoltaic and 10 rupees per kilowatt hour for solar thermal which feeds in the electrical grid.

The private sector looks set to spend $250 million USD to invest in solar plants which will qualify for the subsidy which will run to 2012. Each state in India is capped at 10 MW and 5 MW is the maximum per developer. The incentives will run for 10 years and will be paid through state run utilities and their tariff.

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