Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka told the Assembly on Thursday that the conditions set by the Centre for availing subsidy or Viability Gap Funding (VGF) for establishing solar power plants has become a major impediment in bringing down the investment cost.
Replying to a question on establishing floating solar power plants on reservoir waters, he said that the cost of setting up such plants was ₹1 crore per megawatt higher compared to the ground-mounted plants. (The investment for setting up ground-mounted solar power plants in the country is ranging from ₹3.8 crore per MW to ₹5 crore per MW and that for floating plants ₹1 crore per MW more.)
The Centre, however, had specified the condition that the developers could avail the subsidy/VGF of ₹1 crore per MW only in case of using the indigenously made solar panels and other equipment and it would not be applicable for the imported material, Mr. Vikramarka said, adding that the developers would have to bear ₹1.3 crore per MW more investment for using indigenous material and even if the ₹1 crore per MW is availed, the investment would be ₹30 lakh per MW higher compared to the costs for solar plants with imported material.
That was the reason why the developers were not availing the VGF, the Deputy Chief Minister said and informed the House that the Energy Department had written to the Irrigation Department on setting up floating solar power plants on reservoir waters. Reservoirs such as Lower Manair Dam, Mid Manair Dam and Mallannasagar were also considered for floating solar plants but the investment costs had become a major obstacle.
He was replying to supplementary questions and suggestions made by members including K. Madanmohan Rao, P. Sanjeeva Reddy, T. Rammohan Reddy, Adi Srinivas and Makkan Singh Raj Thakur (all from Congress). They suggested establishing floating solar plants on reservoir water to minimise the evaporation losses leading to difficulties in drinking water supply.
Mr. Sanjeeva Reddy said 9 tmc ft water was being wasted every year in Singur reservoir, which serves drinking water to many areas of Narayankhed, Zaheerabad, Andole and Sangareddy constituencies, itself in the form of evaporation. It was also high in Nizamsagar, Nallavagu, Pocharam and other projects in the area.
On solarisation of agricultural pumpsets to lessen the load on power utilities, the Deputy Chief Minister said a pilot project was taken up in the Amrabad area of Achampet constituency and the government was planning mandal-wise independent micro grids with battery storage system to meet the energy needs locally. It would also help reduce the burden on the government, which was spending ₹14,000 crore a year on free power supply to agricultural pumpsets and ₹5,000 crore for free power up to 200 units a month to 53 lakh households.