With proposals of a 100 mw solar power plant by Euro Ceramics Ltd. and the world’s largest 5,000 mw solar power project by the Clinton Foundation under consideration, Gujarat is all set to take a major leap in new and renewable sources of energy.

The state government has apparently received a proposal by vitrified tiles manufacturer Euro Ceramics Limited to set up the state’s first 100 mw solar power project at Shivlakha village in Kutch district.

Shushil Churiwala, the company’s in-charge of the project, said: “The total cost of the project is estimated to be Rs 2,000 crore. We have already acquired 400 acres of land in this regard. We are waiting for the government to come out with its Solar Power Policy and settle the tariff related issues. After we get the necessary clearance, it will take around 6 to 8 months for commissioning the plant.”

Incidentally, the Gujarat government has already approved the 5 mw solar power plant by Euro Ceramics for which the company has already started placing orders. The 5 mw plant is being set up as per the guidelines of the Ministry of New and Renewable Energy, Government of India, under which each state gets subsidy from the Centre for setting up 10 mw solar power plants.

V K Buch, Director, Gujarat Energy Development Agency, the nodal agency for new and renewable energy in the state, said: “The proposal by Euro to set up a 100 mw solar power plant is under consideration, but the tariff issue is still undecided. The Gujarat Electricity Regulatory Commission is looking into this. The cost of pure silicon, used in the manufacture of photovoltaic cells, is still very high.”

According to data supplied by the Ministry of New and Renewable Energy, the estimated capital cost of setting up a solar power plant is in the range of Rs 16 crore to Rs 20 crore and the cost of electricity generation comes to around Rs 12 to Rs 15 per unit depending upon the technology. Buch added: “These issues will be dealt with in our Solar Power Policy, which we will announce soon.”

Another major proposal under consideration by the Gujarat government is the 5,000 mw solar power project to be set up by the Clinton Foundation.

Buch said: “The representatives of the Clinton Foundation recently met Chief Minister Narendra Modi and briefed him about the 5,000 mw plant. It will entail an investment of Rs 20,000 crore. But again, the discussions are at a very nascent stage.”

The 5,000 MW project, being called the ‘integrated solar city,’ aims to reduce the cost of solar power drastically by economy of scales and by building integrated backward linkages.

The Energy and Resources Institute (TERI), New Delhi is doing a feasibility study of the project and will submit its report in a month’s time to the Gujarat government. Besides issues related to the project cost, TERI will also suggest the most suitable site for the project.