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Govt looking to chart the deserts with Rs 2 lakh-cr solar-wind power projects

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renewable powerFriday, July 04, 2014: The government of India is looking to tap into the enormous renewable energy potential of the deserts by initiating a renewable energy generation capacity (both solar and wind) coupled with the associated evacuation infrastructure in the four key Indian deserts, i.e. Thar in Rajasthan, Rann of Kutch in Gujarat, Lahul & Spiti in Himachal Pradesh and Ladakh in Jammu & Kashmir. The Powergrid Corporation of India has already submitted its report detailing the renewable potential available, cost involved and their economic viability to the ministry of new and renewable energy (MNRE).

The scheme is reported to entail an investment of Rs 20,83,500 million (Rs 10,80,000 million for setting up 11,100 Mw capacity generation projects (10,400 Mw of solar + 700 Mw of wind), Rs 1,98,000 million for laying transmission lines and Rs 8,00,000 million for balancing infrastructure.). Under the scheme, a National Desert Mission will be set up that will require single window clearance, soft loans during initial periods of low corridor utilisation. The scheme would also require a detailed policy for indigenisation of equipment manufacturing.

Experts believe economic viability would play a crucial role in deciding the success of the plan. “Market analysts have broad consensus that utility scale solar photo-voltaic (PV) generation will achieve grid parity around 2016-17 based on the pace of reduction in cost of PV technology and the rise in conventional energy prices,” Powergrid was quoted as saying in its latest report.

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