Karnataka to start allocation of 400-MW grid-linked solar projects in six months…

According to reports, grid-connected solar power generation is set to get a boost in Karnataka in about six months as the State is expected to start allocation of 400-MW grid-connected solar power generation projects by then.

Disclosing this at an interaction meeting with the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Tuesday, Karnataka Renewable Energy Development Ltd. (KREDL) Managing Director N.S. Prasanna Kumar noted that tenders had been floated for setting up projects with a total capacity of 80 MW. The allocation of projects with respect to these tenders would start in 15 days, he said.

The projects would be allocated under reverse bidding process, where a company which quotes a maximum quantum of discount to be offered in the tariff of Rs. 14.50 a unit, prescribed by the State regulator, would be chosen for implementation of the project, he said. Under the same model, projects with a total capacity of 120 MW would be allocated in about six months.

In addition to this, projects with a total capacity of 200 MW would be taken up under the Renewable Energy Certification Scheme of the Union Ministry of New and Renewable Energy in six months to a year, he said.

Appealing to individual households and industries to switch over to off-grid solar power to partially take care of their power requirements, Mr. Kumar maintained that it was possible to find a solution to the power crisis gripping the State within a year, if a majority of households opted for off-grid solar power.

FKCCI president J.R. Bangera, senior vice-president Shiva Shanmugam and Energy Committee co-chairman S. Ramesh were present.

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PFC hopeful of over 20% loan growth despite sector woes…

State-owned Power Finance Corporation (PFC) is hopeful of posting a loan growth of over 20 percent in the current fiscal despite the regulatory concerns relating to the energy sector.

"We will stick to our previous guidance and are hopeful that loan disbursements will be healthy in the current fiscal," PFC finance director R Nagarajan told PTI here.

The power finance firm, which posted around 17 percent growth in the loan sanctions in the first quarter of current fiscal, has witnessed a healthy 26 percent jump in advances during the second quarter.

"After a healthy loan growth in the second quarter, we expect the momentum to continue in the second half," he said.

PFC is also planning to disburse around Rs 35,000 crore of loan during this fiscal for which it aims to borrow around Rs 43,000 crore in this period.

Referring to regulatory concerns, Nagarajan said there were some positive actions in the regulatory front and we hope that all issues would be solved in time.

"Announcement of power tariff hike by Tamil Nadu government is a big positive in making state electricity boards viable. So as the tariff is raised by SEBs, the concerns relating to credit default by such entities will not arise," he said.

Nagarajan, however, said the coal linkage problem should be sorted out soon to avoid delays in execution.

Currently, financial institutions are worried about the advances extended to SEBs in Tamil Nadu, Rajasthan, Uttar Pradesh, Bihar, Haryana, Madhya Pradesh and Punjab, which according to the rating agency Crisil, are the most vulnerable utilities.

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CER prices fall, feel European crisis pressure…

The price of CER certificate on the Intercontinental Exchange (ICE) has halved from $18.52 a tonne in May-end to $9.21 this week.

This is a fallout of the lack of demand coupled with economic turmoil in the European market, a major buyer of the CER certificates.

On November 3, CER prices on ICE touched their life-time low of $8.78 a tonne. Before the global financial crisis, in July 2008, prices had peaked to $ 41.72.

Earlier, several Indian companies generating carbon credit used to hold them and sell at an appropriate time. However, now that European market is passing through uncertainty, the selling pattern has changed.

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GMDC to commission 100MW wind projects in 2011-12…

GMDC, a minerals major has already chalked out plans to add about 40 megawatt (MW) of wind power generation capacities to its existing 60 MW capacities in the current financial year.

In september this year, state mineral and mining PSU Gujarat Mineral Development Corporation (GMDC) said it will set up a 5 MW solar plant on the reclaimed land of mined out pits at Panandhro in Kutch district.

GMDC is setting up 100 megawatt (Mw) wind farm with an investment of Rs 700 crore and expect it to be commissioned by December 2011. Also, on the solar power front, GMDC is setting up 5 Mw solar power plant with an investment of Rs 100 crore and will be commissioned before December. Further plans for additional 50 Mw wind power generation capacities in Gujarat with an estimated investment of Rs 350 crore has been planned.

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