Solar Project Bank: Commendable move by KSEB

In the state of Kerala, the electricity bill is increasing every year to a level that the common man cannot afford. Therefore, it is natural that the middle class is trying to switch to solar electricity by any means. There is no possibility of electricity rates reducing when the availability of electricity from water is decreasing and electricity has to be purchased from outside at a high rate. Therefore, solar electricity generation should be encouraged as much as possible. It is commendable that KSEB is coming forward with the Solar Project Bank to implement large-scale solar projects with private cooperation in this situation. This is the first such initiative in the country.

The aim of this project is to increase solar power generation on a large scale. The project will be implemented on a build-on-operate model. After the contract period, the project will become the property of KSEB. KSEB will buy the electricity at a fixed rate. The price will be determined by the State Electricity Regulatory Commission. The contract will be for a period of thirty years. The lease will be charged at the rate of one rupee per acre for the first ten years, Rs. 1000 for the next ten years, and Rs. 2000 for the last ten years. The lease will be calculated from the date of commissioning of the project. Those who take up the contract will have possession for 25 years to facilitate getting loans from banks.

The project will be implemented mainly in two areas. One area is the dams under the jurisdiction of KSEB and the Irrigation Department. This area has a solar power generation capacity of 5000 MW. The second area is the backwaters, unused paddy fields, and water bodies dug for soil and mining. This area has a solar power capacity of 1500 MW. If the owners are interested, large private lands can also be transferred to the Solar Project Bank. Investors will be attracted by calling tenders or holding investment meetings. A permanent system to run this project well should be formed by KSEB with the inclusion of good professionals. Usual delays in the implementation of matters by government departments should not affect this. Coordination of revenue and local government departments should also be made possible.

The process of accepting applications for projects, determining the qualifications of contractors, and recommending approval for the project should be implemented in a completely transparent manner. If this project is successful, Kerala's electricity shortage can be solved to a large extent. Along with this, there should be diligence on the part of KSEB to grant approval without delay to the applications of individuals to install solar panels. The state needs small projects that rely on other energy sources along with solar. While the country and the state are developing in many forms, the need for energy is not going to decrease but increase in the coming years.