Kerala with Project Bank for large-scale solar projects; first of its kind in India

THIRUVANANTHAPURAM: KSEB to set up a solar project bank to implement large-scale solar projects in collaboration with the private sector. This is the first of its kind in the country. The aim is to significantly increase solar power generation.

The project will be implemented on a build-own-operate (BOO) model. The project will be handed over to KSEB after the contract period. KSEB will buy electricity at a fixed rate. The price will be determined by the State Electricity Regulatory Commission.

The project bank will be created by including the locations where solar plants can be installed, production potential, area of ​​the location, investment value, contract terms, etc. Entrepreneurs will be attracted by calling tenders or holding investment meetings.

The Project Bank will be managed by high-level committees formed at the district and state levels. Their powers include accepting applications for projects, determining the eligibility of contractors, and recommending project approval.

The projects will be transferred using a centralized portal to make the process, including tender, transparent. After evaluating the project feasibility, each site will be included in the project bank with full approval and conditions from KSEB and the Irrigation Department.

KSEB and Irrigation Department to join hands

The projects are being implemented in two areas. One area is the dams under the control of KSEB and Irrigation Department. Here, the solar power generation capacity is 5000 MW.

The second area is the backwaters, unused paddy fields, and water bodies dug for soil and other mining. Here, the solar power capacity is 1500 MW. Large private lands can also be transferred to the Solar Project Bank if the owners are interested.

Contract for 30 years

The contract will be given for 30 years. The lease will be charged at the rate of one rupee per acre for the first ten years, one thousand rupees for the next ten years, and two thousand rupees for the next ten years. The lease will be calculated from the date of commissioning of the project. Those who take up the contract will have possession of the land for 25 years.