Karnataka to buy 1,000 MW solar power from SECI | Mint
Active Stocks
Thu Feb 22 2024 15:29:56
  1. Bharti Airtel share price
  2. 1,134.50 -0.46%
  1. Tata Steel share price
  2. 145.85 1.39%
  1. State Bank Of India share price
  2. 765.95 -0.73%
  1. HDFC Bank share price
  2. 1,419.80 -1.28%
  1. Power Grid Corporation Of India share price
  2. 282.55 0.86%
Business News/ Industry / Energy/  Karnataka to buy 1,000 MW solar power from SECI
BackBack

Karnataka to buy 1,000 MW solar power from SECI

Five state-run utility providers in Karnataka sign agreement with Solar Energy Corp. of India to allow the state to get solar power at `4.50 per unit

To be sure, it may take considerable time for Karnataka’s solar plans to materialise. Photo: BloombergPremium
To be sure, it may take considerable time for Karnataka’s solar plans to materialise. Photo: Bloomberg

Bengaluru: Amid worsening power situation, Karnataka is turning to solar power to bridge the shortage in its energy demand and supply.

Five state-run utility providers in Karnataka signed an agreement to purchase 1,000 megawatt (MW) of solar power from Union government’s Solar Energy Corp. of India (SECI) on Wednesday.

The solar power will be just enough to meet the gap between demand and supply of power in normal weather conditions in the state, said Karnataka’s energy minister D.K. Shivakumar.

The agreement will allow the state to get solar power at 4.50 per unit, almost comparable to the rate at which the government buys power from other conventional sources, he said.

The move comes at a time when Karnataka, especially its capital city and India’s Silicon Valley Bengaluru, is reeling under severe power shortage.

The state has been struggling to meet its total power demand of more than 12,000 MW, of which almost 25% is consumed by Bengaluru, as the supply from its 21 power-generation stations, primarily hydel and thermal plants, was fluctuating drastically with the onset of drought and with reservoirs going empty last year. For instance, they were producing only 3,000 to 4,000 MW daily against a total capacity of 9,021 MW last October, according to the energy department.

As a result, the government had forced some industries to go for a one-day power holiday every week in Bengaluru until recently. The same period also saw long power outages becoming a new normal in Bengaluru, hurting start-ups and people alike, Mint had reported.

To be sure, it may take considerable time for the state’s solar plans to materialise. According to government estimates, power will start trickling in from SECI to local utilities within the next 18 months.

The 25-year purchase agreements reviewed by Mint show that SECI, which is dedicated to implement the Jawaharlal Nehru National Solar Mission and encourage the use of solar energy across the country, has sub-contracted the generation and supply to 10 private companies, providing a viability gap funding of 1 crore per MW. The companies have already identified plots in 13 districts of the state.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 30 Jun 2016, 11:48 AM IST
Next Story footLogo
Recommended For You
Energy Stocks
₹1,904.450.93%
₹182.15-1.35%
₹485.050.64%
₹92.691.42%
₹336.11.03%
Switch to the Mint app for fast and personalized news - Get App