Declining any extension of deadline for developers, DJ Pandian, energy secretary, Government of Gujarat said that only 300 MW of solar energy projects may commission before the year ends.
Pandian informed that not all the companies that have signed the power purchase agreements (PPA) are likely to meet the set deadline of the December 31, 2011 to commission their projects.
As per the terms of PPAs, if a developer fails to commission the project by the set deadline, it is liable to pay a penalty of ‘ 10,000 per day per MW to Gujarat Urja Vikas Nigam Ltd (GUVNL), with which the PPAs have been signed.
"In solar power generation, Gujarat already has installed capacity of 150 MW and this figure is expected to go up to 300 MW by January, 2012. Gradually, by August it should be about 500 MW and nearly 700 MW by September, 2012," said Pandian.
Gujarat was the first state to develop a solar energy policy in 2009, even before the central government’s Jawaharlal Nehru National Solar Mission. "These solar power projects are not part of the National Solar Mission," Pandian informed.
About 84 solar power projects are to be developed under the state policy in various parts of Gujarat, of which 22 are to be developed in the solar farm at Charanaka village in Patan district. The park is being developed by Gujarat Power Corporation Ltd (GCPL), a state nodal agency.
Meanwhile, Pandian also expressed hope for a decline in the solar power rates. "In the past, Gujarat Government has purchased solar power at the rate of ‘ 15 per unit and at present, the purchase price is around ‘10.27 per unit, but the price would come down to about ‘ 7 to 8 in the days to come," he said.