Gujarat, India Sees Increase in Solar Prospects

Seven different solar companies are currently courting solar opportunities in the western Indian state of Gujarat. Each company is hoping to set up solar PV equipment manufacturing plants in the state. Companies such as Moser Baer, Solar Semiconductors, Lanco Solar, as well as others have entered negotiations with local government after it was announced that up to 716 MW of solar plants would be approved.

Known companies to have expressed interest are: Lanco Solar, Moser Baer, PLG Power, Solar Semiconductor, Sunkon Energy, Top Sun Energy, and Waree Energies. If approved, each proposed solar facility could potentially raise funds of up to Rs 500 crore and Rs 1,000 crore, roughly $102.5 million to $205 million.

The sudden increase in interest is directly tied to the Gujarat government announcing aggressive new plans to increase solar facilities in the area. Earlier last month, the government approved 34 separate solar projects which would total nearly 3 percent of the state’s overall power requirements. The state is even considering setting aside a special economic zone (SEZ) for the solar panel companies.

“Apart from the solar modules being required for their own PV plants, the modules produced by the seven players can also be sold to various other players whose projects would come up in the SEZ,” a source told the paper.

Last January, the state government enacted policies that would increase solar energy through to March 2014 by encouraging projects with a capacity between 5 and 500 MW. The policy worked, and several companies have begun persuing prospects for solar production in Gujarat.

The electricity needs for Gujarat are steadily increasing, and the state is expected to have an energy need totalling 14,000 MW by 2012. The state plans to have 10 percent of the increase be supplied by renewables.