India is taking the solar scene seriously. The country has offered to financially support almost a third of solar-plant construction costs, after it laid out the rules for the second phase of project auctions.
According to the draft guidelines published on the Ministry of New and Renewable Energy website, “The country, seeking bids next month to build 750 megawatts of capacity, is offering grants of as much as 25 million rupees ($46,000) a megawatt or 30 percent of project costs,” reported Bloomberg.
As per the guidelines, the country is proposing a minimum solar-plant size of 10 megawatts in the second auction, with a fixed power-purchase price of Rs 5.45 a kilowatt-hour for 25 years. These guidelines are open for consultation till April 30, 2013.
This is the first time that the solar industry has managed to attract such major direct grants in India. The same resource was earlier fuelled in supporting model to build roads, railways and coal-fired power plants, however, there is an evident shift of the country’s focus towards renewable-energy output. This is especially crucial to control chronic blackouts, which can affect the overall economic growth of the country.
